No One Ever Regretted Being Intentional With Their Money

this is the ramsay show you can be intentional about your character you can have money and a career you are the hero in your story [Music] live from the headquarters of ramsey solutions broadcasting from the dollar car rental studios it's the ramsey show where dad is dumb cash is king and the paid off home mortgage has taken the place of the bmw as the status symbol of choice i'm dave ramsey your host thank you for joining us ken coleman ramsey personality host of the ken coleman show where he talks about careers and jobs and finding the right kind of way to spend your day is with me this hour to be our co-host and that means we can talk about your jobs and your careers as well as your life as well as your money phone is at triple eight eight two five five two two five triple eight eight two five five two two five lisa is with us in spokane washington to start off this hour hey lisa what's up hi dave thanks for taking my call um so here's the deal my husband and i were in the process of building a house we actually had the foundation go in last fall with construction due to resume this spring and then we found out last week that our construction budget went up 40 so we've been on this financial plan to do this really intelligently and now it's just gone off the rails so we're gonna put that on hold um due to covid and i have this big chunk of money sitting in our savings account waiting to pay for this home that now we're going it's not working for us right it's making what one percent in our savings account so we'd love to get your advice to have some thoughts on whether to just park in a savings account we have a rental property that we owe some money on we had sold our primary home and i'm renting a home right now um it just could use some direction why'd you stop building last fall so it's we're building on in a mountain environment up at a ski resort and oh you have to weather exactly so we put in you didn't have you didn't have your materials and all locked down by contract so we didn't i feel a little bit let down by our contractor honestly but we did not no so we just found out literally last week he told us he did he gave us a revise that's the difference in your sweet people and me i wouldn't be a little bit let down i'd be pissed off like 40 pissed off that was his job to lock this up i mean my gosh yeah i'm working with a contractor right now building a building or anticipating a building we're breaking ground on in two weeks and i've been wearing them out about locking in everything because you can because of the same stuff you're facing these these shortages on the materials have gone through the roof cause prices to go through we're gonna see inflation come back i'm afraid because of it hi so how long do you do what is your guess on when you actually do build wait do you think that it will go back down i mean you don't know right i know well yeah i don't know economists and weather forecasters are the only people that can be wrong and keep their jobs oh and wait a minute medical doctors predicting virus infection rates but um there he did he went and they can be wrong and keep their jobs too but um uh but anyway the uh uh [Applause] for me i don't know i i i i do not i am pretty sure you're gonna see something come back down there's a reason that steel and wood and lumber and now plywood right behind it are going through the roof as i understand it from the people we're working with in the business because i've got several construction projects underway myself and plywood is actually glue there's a glue shortage and that makes the plywood with and so we're going to see plywood probably triple in the next 90 days is what i'm hearing and it's already high lumber packages are it's the factories were shut down and they were not producing uh inventory supply at the rate even at the rate that it was going there's not like there was this huge building spike and the factories were operating at normal they weren't operating at all and then on top of that there was a good sized spike in building so as the spike slows down and the factories get back to capacity supply demand curve is going to drop these prices down steel is not going to stay where it is not not for not for five years it might for 24 months though i don't know i i don't know on that but um so it so the answer to your question is how long do you think you're parking the money the longer you're going to park the money the more you're going to want to put some of it into something like an index fund and take a little bit of risk with it to get a little bit more money so it could be two to three years okay so you're thinking i would love it you emotionally are prepared for a two-year storm okay i don't know that you're wrong on that um so i'm curious dave how much do you owe on the rental property okay so we owe 103 on the property and i have 180 000 sitting in the savings account okay when you get ready to build would you be willing to sell the rental if you had paid it off and needed the money if i need to we definitely would do that yeah because yeah i mean i mean that's once that's a really safe place to get a three or four percent rate of return on that hundred grand pay that mortgage off okay ken's got a point that's where he's going i jumped the gun but yeah that's that's what you were thinking how much money is in savings for this building project so i have a 180 in savings and we already have you know we own the land outright and we have no debt on the foundation and done so we already have you know a hundred thousand people parked over there in concrete right now but that's that's not here there you're not gonna tear that down so yeah yeah i i you know you could either do one of three things or some mix of them pay off the home the the rental and then be willing to sell it when you get her back up because you're gonna need the cash back out of it i'm not gonna turn around borrow back on it uh if you do that that's kind of a point of no return on that the second thing is you could park some in an index fund index funds are going to follow the market whatever it does uh i mean you could lose 10 of what you put in there over a two-year period of time it'd be highly unusual the number of times a two-year period in the stock market's history is down 10 it's like two percent of the time or something it almost never happens but it could i park stuff for short term like that if i can afford to lose the spread lose five or ten percent on it uh in an index fund and you might make 10 percent instead of 1 on that portion and then some of it you park in just cash and that's your safety bellwether so i probably wouldn't do the rental and the index fund i'd do one or the other and leave the other half in just cash yeah okay she got half of it real safe half of it's either in that rental and into the or into the index fund that kind of thing hey thanks for the call yeah can there the next generation of elementary school teachers school kids are going to be uh future math it's a whole new form of mathematics is that right yeah it's where you just make crap up yeah i like that well can i just say this as a parent of three that went through common core i think somebody made that up too [Laughter] well that's just because you can't understand it i don't know take a survey right now i'm telling you nobody knows what common core is it's unbelievable it's like they cut it you got to go out it's like having a perfectly neighbor godzilla it's like saying the front door works but we're not going to go through the front door because the way we do it now is we walk all the way around jump over the fence and come in the back door yeah that's common cold it's more fun for you i don't even know how that part of your brain works i don't even know how to do it i've never tried this whole side of my head with math dave it's exploded no there's nothing there oh there's just nothing there it's empty doctors have found no wavelength there's nothing in there no no activity no brain activity it's almost like you're a medical doctor yes you can't do math yeah oh my gosh this is the ramsay show [Applause] [Music] ken coleman ramsey personality is my co-host today he's host of the ken coleman show on over 75 radio stations siriusxm a big time podcast and youtube show where he answers questions about your career getting a job getting in the job and in the career field that you love and are passionate about and exactly how to execute and get that stuff done real world tactics like we're kind of known for around ramsey so again triple eight eight two five five two two five let's go next to brandy in wilmington delaware hi brandi how are you hi i'm great how are you better than i deserve what's up good good um so i wanted to see what you recommend i've changed companies um three times in the past year and i have two 401ks still sitting with the company that i used to work for and i wasn't sure what i should do with them if i should roll them over or consider an ira what what would you suggest i would roll them to an ira with a smartvestor pro they'll help you pick out some mutual funds always take your retirement with you by rolling it to an individual retirement account in good mutual funds if you have it available to take with you and you do in these cases the reason is is that your new 401k at your new company probably is good it probably has eight or ten decent good options but again if you will just put it in your name a you've got more control more access you'll watch it closer and b you have 8 000 mutual funds to choose from in an ira not just 12. and obviously with a field that wide you can probably get something that will outperform or perform equally to your current 401k but probably outperform it okay perfect that was what i thought you would say but just wanted to check so thank you so much for your time thank you so ken the um what you don't want to do is you don't have to go back to your old company and talk about your options and moving stuff around and resetting things with a with a hr team or a payroll team at the old place it's just uh awkward yeah it's a little weird hey i know i left but i've got some unfinished business oh i need you to help me out here right now i need you to do i need you to do some work for me yeah you should fix this yeah that's just and you just get into all kinds of issues there so yeah open phones at triple eight eight two five five two two five renee is in san jose hi renee how are you good afternoon dave thank you for taking my call sure what's up i'm 47 years old and i need help finding motivation to work for another 13 years until i'm 60 years old i'm gonna try to preempt your questions i have about 2.1 million in various 401ks and about 1.6 million in stocks and bonds and a 20k savings emergency fund in my bank as i said i'm 47 years old i've never married no kids i support my parents who are in their 80s and i have no debt my three houses are paid off and i've paid off my medical school loans i make about 200k a year as a doctor and in the context of my parental caregiving responsibilities i met with a financial advisor last year to ask ask how it would be financially if i had to stop working in order to care for my parents in the setting of covid and she said i could stop working and have enough money to support myself now if i work another 13 years until i'm 60 years old i'll get free health insurance for the rest of my life and i can start receiving my pension at age 60 years instead of at age 65 years what do you like about your work what do you not like about it thank you for asking i love my job um i love seeing patients i feel so blessed it's such a privilege if i had to take care of my mom i don't know if i could work at the same time i wouldn't want to put her in a nursing home because then i wouldn't be able to see her you don't need motivation to work for 13 more years if you love everything about it what is it you don't like what do i not like well work is overwhelming these days in the setting of covid um i always work more than my paid hours and i accept that um if i truly didn't feel the need to work i might go to medical uh sorry music school i i play the piano and the violin and it's always been a dream of mine to apply to a music conservatory yeah you know renee here's the deal you're a renaissance woman yep 3.7 million dollars you're a doctor and now you want to go to a music conservatory is there anything this woman can't do you're amazing yeah everybody's going oh i feel a little bit worse about myself including me but renee you know dave's right you don't need motivation you need a mission and i think you've got to say it's okay i think you have to let yourself off the hook i i just i've heard these calls before is there some sense of and i don't want to use the word guilt in the in the normal sense that we use it with a like you did something wrong but there's some sort of guilt or shame that you have when you allow yourself to envision not being a doctor because you do love taking care of patients but you've got this other side of you that that you want to explore is there some sort of guilt or shame you're dealing with i wouldn't call it guilt or shame what would you call it um lost opportunity yeah all right so if in the next 13 years i develop arthritis or lose my hearing will i regret not having taken the chance of getting my skills in place and answering me and trying i think the answer is yes that's what i hear what do you think the answer is i think it's yes you think you'll regret it um there's a high chance i would regret it i mean there are other outlets for music it's just that our local orchestras and string quartets aren't meeting currently all right let me ask you this really quick let me ask you this what kind of a doctor are you general practice is a specific type of medicine you do i i'm an ob gyn i deliver babies okay that's awesome so therein lies the extra hours right you just you just keep delivering babies i think you're at a position uh professionally and financially where you could you could draw back a little bit and not work as much as you are and begin to pursue practice in half i agree with that and pursue get the best of both worlds yeah the joy of delivering babies that you still have joy from and you love your patients but you're just doing too much of it and it's got you boxed out of doing other things you want to do cut your practice in half you can afford to do whatever you want to do if you're asking us mathematically you're a financial advisor is right you could quit your job and you know you figure out a way to live on 3.7 million dollars i think you struggle through here but um but but i i think you get too much joy and satisfaction from your medical career i think you just structured it to where it's eating you alive it's just eating into what you really want to do i think you do what dave says or nate here's why let's say you cut back on the practice guess what there's always going to be more babies so you can ramp up this isn't a risky situation here and dial in a little bit you know are we going to have a coveted generation that are all born because people are at home renee's the one to ask i think we're seeing that aren't we renee a baby boom actually it's the up it's actually the opposite um people don't want to be around each other likelihoods there is some increased domestic violence unfortunately i knew that economically um due to job loss and uncertainty health insurance loss we've actually seen a decrease in the number of babies born per month yeah wow yeah okay so people people are yeah wow i didn't i never thought about it i just wow okay so anyway yes i would pull back i would give you permission to cut your practice roughly in half or more the only reason i wouldn't quit completely is i also think you'll regret that because i think you get a level of joy out of this yes i agree with that thank you for that the three of us are on the same page so i used to make over 300k which was my base pay and i have given up operating which is doing surgery on women and as of last year i did give up labor and delivery so i'm no longer on call on weekends nights and holidays so i went from full time which is in doctor's world 80 to 90 hours per week to part-time which is about 50 to 60 hours per week and um and that gave you that gave you some relief yeah but you're still going hard you're still going hard and um so i don't know what portion of the practice i don't know how to parse out an obese practice um but um i would parse it out in some way to where you cut back to i don't know whatever you want to call it 30 hours or whatever i would keep my toe in that water though i don't think i would walk away cold and and i don't think you have to to explore the music stuff because as you said some of the music is coming back a little slower than other areas of the culture and so i got lots of friends in the music business here in nashville and they were kind of wishing that it was going better a lot of them are struggling so yeah this is the ramsay show [Music] ken coleman ramsey personality is my co-host today in the lobby of ramsey solutions on the debt-free stage griffin and sally are with us hey guys how are you hey what's going on welcome where do you guys live we're from milwaukee wisconsin wonderful welcome to nashville and all the way here to do a free screen yes sir how much have you paid off 148 000 in 15 months whoa that's pretty rowdy your range of income during that time we started out right around 120 and we finished out at 180. wow nice incomes what do y'all do for a living well you can start so i'm a wedding photographer and i was a nurse during our debt payoff as well okay and then i'm a computer engineer okay so you were both working a lot yeah yes well maybe not so much on the wedding photographer in 2020 well actually a lot of people think that but it wasn't too bad i think we did 28 or 30 weddings wow yeah yeah not too many people afraid to still have their wedding yeah that's interesting okay well some of the crowd shots were smaller yeah yeah we did some weddings that were 10 people yeah 20 people there but they still wanted pictures of course yes that's great yeah a lot of people in the wedding business quit that's not being reported that's breaking news right there on the stage no there's a lot of people reporting that they went out of business that's what i'm saying well it's not being reported that she's winning yeah she should that's what they talk about we did everything in our power to work with people and reschedule things yeah good you what kind of debt was 148 000 it was all my private engineering school that just got my job yeah wow so it was all your fault yeah that's how it started but we're high school sweethearts so i was locked in so you knew you knew what you were getting into huh yes all right that's very cool very cool well congratulations very good so uh what put you on this journey 15 months ago you can start so about 15 months ago well not really 15 months ago because we paid off our debt in october right and so um in july of 2019 we got married we were head over heels in love um had no idea what we had coming for us griffin is the nerd and i'm the free spirit so he did all the calculations realized we had a lot of debt and we had our first fight and we were devastated realizing what situation we were in what this meant for our future that this was going to hold us back in a way we didn't expect um and so we really both just looked at each other and felt hopeless like this is not what we imagined getting married would feel like but as much of a burden as it felt like we knew that a hard work would get us out of it and we depended on our brother's love of dave ramsey luke over here to get us through it and so we trusted god with it we tithed we honored him in the process and we just got to work and we booked as many weddings as we could i found another job and griffin um worked his butt off in the process to help me so david said there's a way out you got to do this hard stuff yes it was nice and introduce you to us yes okay all right very cool way to go david good job oh luke it's luke i'm sorry luke said where did i get david okay i made that up okay uh my brain just left but yeah so wow and you did did you sell stuff i mean you must have lived on nothing so it was interesting we um when we started we knew that we were going to have to cut our expenses as much as possible we started cutting each other's hair we learned how to cut our groceries down to almost nothing we ate a lot of beans and cottage cheese our meals weren't fancy we never went out to eat we didn't travel if we were traveling it was for a wedding and that was our traveling experiences weddings became vacation yes somebody else's wedding yeah exactly yes and uh what else do we do after we did the first budget uh it was red and it was negative and i said looks like we got to do a little bit more and so we dug a little bit deeper found some extra areas that we were trying to hold on to and that's yeah that's how it all started what were the last couple of areas you let go of that were hard to let go of i found it really hard to not do impulsive experiences like with our friends we had to say no to going out and doing something fun on the spur of the moment kind of thing it was really hard to say gotta go home get to bed because we got work to do and uh we got a lot of weird looks from people why are you working so much that was hard um but it was worth it and all the sacrifices are what got us to this point so sally i want to dial in on that sacrifice piece as a nurse and a wedding photographer i mean how many hours were you pulling in a given week so um i was working 40 hours a week as my nursing job and then we would travel on the weekends it just depended sometimes we were going out of state so we would leave on fridays do the weddings on saturday sometimes friday weddings saturdays weddings and sunday weddings and then we would come home griffin would do all the cooking and cleaning he was a huge support he went to every wedding with me carried my bag made in my job as easy as possible and we really worked as a team so i can't take all the credit but we did work a lot and it looks like i worked more but really he was the motivator and the encourager and he um did the small things that i wanted to be doing but i realized that those would come later and now i'm at that point where i get to clean the house and cook and do the things i wanted to be doing are you still cutting each other's hair uh yeah well griffin actually decided to grow his hair out yeah that's one way of saving money right now in a while okay i think i'll try it in the last shot i got my hair cut at a at a haircut places before our wedding two years ago so ever since then she's either cut her it hasn't gotten yeah yeah fun fun fun how long you all been married almost two years in july okay so this whole thing has encompassed your married life yes it was an interesting way to start for sure you just yeah the high school sweetheart thing and then all the romantic bubble is burst with that first big fight and you got to go oh crap there's reality at our doorstep we got to deal with this exactly 15 months i mean you guys were on fire thank you this is very well done okay what do you tell people the secret to getting out of daddies so the this is kind of right after we started two months we did our first budget realized having more and we we realized that we weren't tithing and there was this big battle of we had to already trim our budget and we didn't know is this going to slow us down by how many months so in december of 2019 we decided to start tithing and the next day sally got the nursing job she just talked about she got the or she got a interview and then three more wedding jobs came in the next day and we could see the obedience that god was blessing us for wow right then and there and we just kept tithing and we got done even quicker than we expected so god is good and he's unfaithful test me in this says the lord yes and see if i will not throw open for you a window of heaven and pour out blessings that you cannot contain exactly that's amazing i think our original goal was two years yeah our original goal was uh a month ago was when we were supposed to end and then the the more we tied i feel like the more jobs and the better our situation got you know and by the way you got the jobs you took the jobs and you worked the job exactly yeah like a thousand hours i mean extra wow you just poured it on great place to go when you're broke to work you guys are amazing thank you you're on fire okay so now you're kind of through the big push now you got to finish the emergency fund and get on with the uh baby step four start your retirement all that kind of stuff probably already there now and so you slow down a little i guess right yeah so i quit my nursing job which oh you did huge blessing because now i can just kind of not be the bad kind of normal but have a more relaxed lifestyle and and stop and enjoy things a little bit well actually get some sleep but yeah yeah yes breathe a little bit yeah yeah yeah well congratulations thank you so much what's the first big thing you want to do now that you're the other side of this well right after we got our day we haven't seen our emergency fund we got our retirement started then we kind of went to trace babies have seven we didn't have any kids yet and we didn't have a house we live in an apartment but now we're going back to baby step five oh hey i love it a onesie yeah baby step five on it so when do you do uh september yeah oh my goodness about a year after we paid off our debt that's awesome i got goosebumps everywhere that's a way to reveal it right that's a great that's a great baby review it really is that's fun well congratulations thank you guys that is so awesome very very cool what a great way to start out your lives and if you guys can plow through something like this together you can do anything together and so it knits you together in a way that nothing else will and uh so just just amazing so well done all right griffin and sally from milwaukee 148 000 paid off in 15 months making 120 to 180 it's all about the hours baby count it down let's hear a debt free scream three two one that is fun i love it wow this is the ramsay show [Music] [Applause] [Music] so [Music] ken coleman ramsey personality is my co-host today this is the ramsay show open phones a triple eight eight two five five two two five connor is with us connor's in minneapolis hi connor welcome to the ramsay show hey dave hey kevin thanks for taking my call sure what's up so hoping you guys can resolve a debate between my wife and i on how much do you spend on a car um so a little background on us we're on bb steps 456. we have no debt other than our house and no kids yet sorry a little nervous uh okay what's your household income what's your household income yep uh 200 000. and what's the other car worth um about 17 okay and what other toys do you have with motors in them or wheels on them uh just one other car that is not worth a lot that is falling apart so no no no boats or sea doos or snowmobiles or whatever no nothing like that and we have um currently 86 000 cash on hand okay so what does she want to spend on the car she wants to spend five to six not nearly enough that's what i was thinking like 12 to 15. i would say 20. 25. 20 25. you make 200 000 a year you have no debt you have 86 000 in the bank you need to buy your wife a good car not new but a really nice one-year-old or two-year-old car you guys are being cheap skates well there is a little catch dave um the one piece being that in the next one to two years i'm planning to go back to get my mba and my wife is a teacher so she only brings home about 42 a year so don't quit your job you know your mba is an executive program at night why would you give up this fabulous income to get an mba um i think long term it's probably the right move so i went to school for history and political science and ended up falling into a really good job i don't i think you make too much money to quit your job to go get an mba i think you get your executive mba at night it's the same mba dude and you keep your job yeah what do you make uh 156 last year so you're going to pay 156 000 a year for two years to go get an mba that's dumber than crap yeah where are you going what you fell into something where are you where are you headed with this nba you think it's going to take you somewhere where so um right now i work for a healthcare rit company um and kind of the second caveat with this is that i'm going to be rolling into a new job in the next year here my remote work i work for a company based out of wisconsin that works ending so i'll be going to a new job i don't the income's not going to drop to nothing but it should be around the same area given my experience and skills and kind of the references i have um future though i'd like to work my way up to like a ceo or ceo of a hospital i didn't say don't get an mba i said don't pay 300 000 for it yeah do it as you go okay i mean really opportunity cost on your money is one of the things they'll teach you while you're getting your mba your pay you're giving up a hundred and fifty thousand dollars a year for two years of income to get an mba when you could do it at night in an executive program and there's tons of high quality executive mbas all over the nation that you can get into and they're about 20 grand and go get your mba mba is a re is a wonderful field of study is it necessary to be a ceo no but it's helpful it's good i would suggest it i don't have one but i would suggest you get one i got several work for me and um so but you know but dude you're paying too much anyway side issue so that's that changes the car discussion and you're right that is a a piece of context around the car on a teacher's salary did we do that are we going to cut our income by 150 000 so it brings up a larger discussion i think but um so i think you go by 20 if you want my advice if i was your dad i would tell you your old uncle that's kind of grouchy and speaks too plainly um you know i would say i love you man and don't pay 300 000 for an mba do it at night go get your mba live your life have your career field that you like it it's probably table stakes to some degree in the in the world that you're in and uh but but you know it is not necessary for you to give up that income to get it and that means that you've got eighty six thousand dollars piled up to buy your wife at twenty thousand dollar car yeah i absolutely agree pay as you go on the nba and learn how to follow you're going to get opportunities to lead that mba is going to be real nice it's going to look really good but by the way if you're working for somebody a lot of them will pay for it yes sir they will absolutely if they want to invest in you a great company wants you to get that i there's no hurry for you to go get that mba yeah there's just no hurry if he's changing jobs i'd like him to get in and get settled let's see what the latter looks like in this new company let's have that discussion but you know i've not used this phrase before but it is the phrase it is the right phrase we have told too many people and too many people have believed that a degree of a certain level a degree period or a degree from a prestigious university is table stakes to be successful it's not it's not at all you get to play at the table it's how you play the hand and does it give you an advantage in some cases it does then you know having the knowledge base is a good thing but there is there is absolutely not a single piece of research that says where you went to school caused you to be successful matter of fact there's contrary research absolutely let's give you a good old-fashioned football recruiting analogy you can have a five-star rating or a four-star rating from from a recruitment organization and you can get recruited based on that but you better go and you better show up and if you don't play well you won't get on the field i don't care if you're five-star or not if you don't play well if you don't show up in practice and do what it takes to show it to get a chance to play on saturday you won't play i don't care what your rating is and that's the nba it's nice it says that you've gone and done something but the reality is dave you're right you got to show up you got to be humble you shouldn't have to work your way up the ladder by being a good follower learning how to lead and then applying that wonderful knowledge to real life leadership and that comes through delivering results yeah but the the mba is not willy wonka's golden ticket it is not it is not going to get you in the ball cinderella yeah uh you know what gets you in the ball is you know your results yeah you you you actually do stuff that's right now it can it get you noticed sure you know can it get you a side-eyed glance yes it can i like that but it doesn't but it doesn't it does not cause you to get let me just tell you we're hiring for you know six figure positions every day here we're hiring 300 000 people around 300 300 people this year god help me um 300 is enough at ramsay this year and several many many of them are business leadership roles tech leadership roles that are six figure and not a single one of them will be hired because of where they went to school that's true not one not a single one of them will be hired because of their career level or be turned down i mean because of their education level or be turned down because their education level the only thing we are concerned about is do you have the tools to do the freaking job you know i had a guy working for me years ago said you know guy with as many degrees as i've got usually makes any more degrees than a thermometer i mean you know he's like a guy many degrees i've got makes a lot makes x number of dollars and i said well honey you're working for a small business and around here your raise is effective when you are that's good that's my favorite line that's so good but that's you know and didn't make him happy he didn't work anymore but the um you know because he want to be paid for because he went to school no you get paid for doing crap that's it that's all it is scoreboard kill something drag it home so in his case the nba is a good thing good thing is it table stakes does it mean you cannot succeed no would it probably open some doors yes with the knowledge base you get definitely open some doors and give you the ability at a co level to function in health care yes and he's in the financial situation where he can cash flow his way through it yep and they might pay for it absolutely i mean healthcare is big on education so you know there's a lot of different ways to play this but what i want to take off the table for him and for everyone else is that it is required or it is a golden guaranteed ticket certificate you will succeed because you have it no over-educated broke people are everywhere yeah they're everywhere they're all over our culture and and and they're arrogant as crap oh yeah but they're broke here's the line dave a degree is not a guarantee that simple touchdown there you go not a guarantee it it might it might get you a side-eyed glance across the ballroom but that's it cinderella you've got to make tackles you got to block you got to catch the ball too many metaphors mixing up i know cinderella's making tackles now i don't know this ain't good buddy this is the ramsay show [Music] hey it's kelly associate producer for the ramsay show this episode is over but if you heard about an event product or service and didn't have a chance to write it down don't worry we list everything you've heard about during this episode in the podcast show notes section or head to the ramsay show.com thanks for listening [Music] this is the ramsay show [Music] you can be intentional about your character you can have money and a career you are the hero in your story [Music] live from the headquarters of ramsey solutions broadcasting from the dollar car rental studios it's the ramsey show where debt is dumb cash is king and the paid off home mortgage has taken the place of the bmw as the status symbol of choice i'm dave ramsey your host ken coleman ramsey personality and host of the ken coleman show where he talks about careers and jobs and how to find fulfillment and the most money you ever made in your life and all those kinds of things every day on 75 radio stations siriusxm a podcast and youtube all at the same time it's an amazing feat of technology that that team pulls off like they do with this show and you can join him there anytime you want but you can join him today here at triple eight eight two five five five that's triple eight eight two five five two two five and ken we got the big uh high getting hired event get hired event coming up on april the 27th tuesday yes sir was that a week for tomorrow yeah you're gonna be here before you know it coming to you live from our ramsey solutions lab we're gonna have a limited crowd here but it's gonna be a lot of fun and then anywhere you've got an internet connection and a device you can tune in get hired it's a live stream event this coming tuesday the april 2 april the 27th actually today's monday so a week from tomorrow uh for those of you listening live uh at this one night event you're gonna learn how to get clear which ken talks about as your first step is next steps get qualified get connected get started get promoted get your dream job and give yourself away he's going to walk you through the seven steps of the path to your dream job and it's time to take that next step he's going to show you exactly what to do why to do it and it's going to feel like the baby steps but for work it works has he developed a plan here a system that thousands and thousands of people have used to get a different job a better job get the first job whatever it is tuesday april the 27th get hired live stream it's only 20 bucks text hired to 33 789 to get signed up text hired two three three seven eight nine so what is the emotion that people will enter that event with and then what's the emotion they're gonna leave with yeah they're gonna they're gonna enter in a little bit scared uh probably a little bit of doubt fear of if i start to make this transition i might fall backwards financially uh doubt is it too late do i have what it takes uh and then they're gonna leave with a tremendous amount of clarity and confidence and so that emotion is gonna be wait a second this is not as complex as i thought and i can actually get there and you know what it feels a little bit um when you're job hunting it feels a little bit like you're trying to win the lottery like it's very random that's right and it's very uh but you've got it dialed into a system where it's not random at all it's cause and effect yes sir you know you've taught us so well uh control the controllables and what i'm trying to bring to people is hey there's things you can control number one you can get clear you can assess and get great feedback and know what you do well that's talent you can figure out the kind of work that fires you up and the results you want to put in the world you can get qualified you actually can you can do the research and figure out how to get qualified you can save up for it cash or flow your way through it you can meet people which are the currency connections are the currency dave to opportunities and and you can summon up that confidence if you do those three things to actually start you can uh get better in the workplace you can grow and you can earn opportunities to step up so once you get to the idea that i can actually do this then they go wait a second all right so many people think it's the unscalable mountain but i was sitting in a green room with jim collins who wrote good to great yeah and he had just finished the manuscript for great by choice and he was so excited he was just on beside himself and we've been friends for years he's a great he's a wonderful intellect and he was saying we've discovered really that that luck is not luck no it's a choice that's right and he had shown that empirically with evidence and research because he's a researcher it's what he does and he was just he was beside himself he said it's not random and and let me tell you you getting that job is not oh you're so lucky it is the result of a series of exact step-by-step processes that's right that cause you to put corn in the ground water the ground back up let god put the sun on the ground and then magically you will get corn yes but otherwise people just walking around throwing beans out there hoping corn grows yeah yeah you listen if you show me a person who's confused and been wandering from job to job i can tell you that they just didn't know the direction they were supposed to go and then there is a path up the mountain it's intentionality and those seven stages are all about intentionality each stage leads to the next stage and it really is like climbing up to your professional pinnacle and this is how all all men and women who do what they were created to do whether it's whether they're notable or whether you've never heard of their name they've all been very clear on where they want to go and when you have that direction dave uh you can find that you know what's interesting is even if people don't know they're doing it everyone who's walking into a successful career did these steps that's exactly right without exception without exception because you just put names on them yeah and well you i clearly identified that here's what the winners do oh yeah well they even realize they're doing it or not i mean there's a mechanic a series of mechanics to swinging a golf club throwing a football swinging a baseball bat and the winners all do it a certain way that's right it's like well he has an unusual swing no his swing sucks yeah and you call it unusual because he happens to still hit the ball right but he's still it's not a it you know but but there's a reason you call a golf swing a pretty golf swing it's because it's mechanically yeah correct there's a series of things that are involved in that swing that caused that to happen as a repeatable predictable outcome yeah and that's true in finance it's true with money it's true with careers is truly your marriage and these are predictable outcomes as a result of behaviors and attitudes and beliefs yeah and you're going to outpace most people when you're intentional and you know the path that you're walking on works and it's just a function of showing up and i'm going to keep showing up you know there's two magical worlds that words that most people don't talk about when it comes to really pursuing something that is i've got to get up and persevere every day i got to show up but then i got to be patient and so we don't sell quick fixes here at ramsey solutions because we've read the book dave the tortoise wins every time well here's intentionality no distraction you can automate applying for jobs yeah and drop your resume in sure in the hopper that is playing the line yeah and you you but let me tell you what i'm gonna we're gonna hire 300 people this year we will get north of 20 000 applications that's extraordinary for 300 spots now that you're going to do something that sets you apart some way or another and king can tell you what that something is not just at ramsey but that's the case everywhere you're trying to go to work that's right there's something that's happening that causes something one of the you can find common characteristics of the 300 that do get hired versus the 20 000 that applied and did not get hired here's a hint a resume is worthless without a relationship just soak on that uh with the automation that's coming on on the scene in american technology dave we have a husband is so distressed he has filled out applications thousands of applications and never even gotten a phone call right because he wasted his freaking time that's right you spit in the wind it's not going to turn out very well so we're going to teach you how to get connected that's just one of the three stages that we'll cover in depth at night and it works it works every time so get hired live stream giving you some important content out of that right now in the last 10 minutes but even more you want to learn more about this ken coleman's going to be doing it april 27th a week from tomorrow text hired to 33 789 it's twenty boxes off text hired to thirty three seven eighty nine you'll spend more than that to add toppings to your pizza this is the ramsey show [Music] [Music] so ken coleman ramsey personality is my co-host today as we talk about your life your career and your money open phones at triple eight eight two five five two two five james is in west palm beach hey james welcome to the ramsey show i appreciate it thanks for taking my call sure uh my question was um i have a mortgage of 165 000 and i have two properties they're vacant lots but due to like a lot of people um inventory going up now i debated on maybe selling both of my lots and taking that money and putting down on the principal onto their mortgage i have three kids one's ten one's eight and one's three and i have accounts for them but i only have like maybe twenty five hundred dollars in each account and i try to put money and when they get birthday money i put the money in those accounts for them um toward college uh my question is do i you know put it toward principal or should i try to set them up it accounts for college what are the lots worth uh the one lot is about 65 000 and the other y i could get 40 000. both are paid off okay so 100 grand and you owe 165 on the house correct and what's your household income 115 000 okay well there's not really a wrong answer putting it on kids college or put it on the mortgage either one neither one are in the stupid column okay uh both of these are smart huh i'm sorry it's a 15-year loan i had okay yeah but neither one are bad ideas i mean if you told me i'm going to cash out the lots and uh go buy a car i would say no i mean that's it's going down in value the lots are going up in value we're trying to think through this so but you're working the baby steps you're putting 15 of your income away you're you know you're putting into retirement you've got your emergency fund and you're debt-free but the house right only in one vehicle i have 14 000 i o on okay before we discuss anything that vehicles paid off you have your emergency fund in place yes how much i have a total right now 26 000. write a check as soon as you get off the phone and pay off your car okay okay now rebuild your emergency fund and then we'll keep on going with this discussion and you're also putting 15 of your income into retirement already right correct yeah so you're doing the baby step shuttle order oh okay you were not following our plan our plan says stop retirement and don't have savings in emergencies until you're debt-free but the house but we just did that so you're good now okay okay you're caught back up but as soon as you get off pay off the car okay yes sir all right good now finish up your emergency fund you need to add a little to it the next few months but in the meantime yeah let's put those lots on the market and sell them if i'm in your shoes it's okay to put it towards the house but i like putting it towards college more in this situation because it doesn't pay off the house if it paid off the house and you no longer had a house payment and you could take that and turn that towards the kids college fund really aggressively i'd be excited about that but you're still gonna have sixty five thousand dollar balance on the house after the smoke clears right yes i mean i just like i did your your payment calculator to pay things off early i think that if you know i did that i could drop it almost yeah you could get it paid off by the time they went to school but you still then would be trying to cash flow school out of 100 000 income which is a pinch for three kids that's a lot so uh yeah i'm gonna just start i would sit down with a smart investor pro and look at how much can i lump sum into three different kids into a 529 into good mutual funds to get them you know 80 percent towards where they need to be at the age of 18. in other words a 10 year old you can put you need to put in x in order to have y at eight eight years later okay and they can tell you what x is and so you got x for each kid that you need to put in today that won't use up the whole hundred thousand and then i would throw the rest of it at the mortgage and then let's go ahead and lean in on that mortgage and pay it off with your budget okay okay but since it see what i mean because it doesn't pay off the mortgage you don't get any cash flow benefit today since you're not knocking the mortgage out now if you told me you're getting 200 out of these lots i pay off that mortgage in a heartbeat my only question was i don't want to be greedy because i've had this lot for a while and before 08 and i could have sold the one lock with just 90 and you know that will blew up what is greedy what do you mean by greedy you know well back in i i purchased one property in 2006 and then and in like 07 i had a buddy of mine told me i was getting offers for 90 000 for the one bar i had and i didn't sell it because someone was telling me these lots are going to keep going up and then in 08 the economy you know crashed and i almost got nothing yeah i basically had nothing then it was worthless and now it's finally coming back so i didn't know if while you know things are going crazy right now maybe i should hold on and just keep failing oh you don't mean greedy as a spiritual problem you mean you you just don't you know the pigs get fat hogs get slaughtered yeah okay all right well little piggy sell the lots yeah that's all you do it's just time because it's not necessarily we don't we're not making a decision on what's right for the real estate market we're making a decision on what's right for james you're right today your kids college is more important than you being a lot speculator gotcha i appreciate that because i've been torn my head a little bit yeah and it's okay to be a lot speculator but it's secondary to your kids college right yeah yeah i think so i mean i think it's important i would say this that the 529s and you really understand what we teach on this because some i just think college is changing and i think that landscape has changed i think parents have to plan for it financially but give yourself some options so that money can go towards their training whether it's traditional four-year degree trade school uh or what have you because the way you get the knowledge from a four-year degree is going to change dramatically in the next 11 years i think for that for that that's what i'm saying but but that's okay knowledge knowledge is never going to go out of style no no no no being dumb has never been a good idea that's right so there's a lot of different ways to get knowledge though and the traditional four-year model uh where you have to join a fraternity is probably you know between the student loan epic disaster failure yes screwing people's lives up yes and then i'll add to that covet the fact they're trying to charge the same amount and send people homework on their computer that crap ain't going to fly and so people are done with this and but it's not but we at ramsey are not against education no we just have a realistic view of what is going to happen to the poor people in higher education and uh we have a realistic view of the actual value marketplace value of having the knowledge or having the degree which is very high it's good to get the knowledge absolutely and put that money away parents but make sure that you're thinking through what's the best way to apply that so that your kid actually gets the training that they need you know the the sticker price and the return on this dave as you know is very different yep chris is in new york city hey chris how can we help hey dave hey ken uh great to be on the show thanks how can we help yeah um uh real quick i just want to give a shout out to my girlfriend maria jose she told me to call in um reason i'm calling is because i've got a lot of friends who are buying into cryptocurrency and you know my investments are all in mutual funds like you recommend um and i'm hearing about you know bitcoin dog or dodge coin and all these other things and i i just wanted your thoughts on how to respond when people try to pressure you to invest into this stuff and maybe even get your thoughts on cryptocurrency in general okay i wouldn't do it why because i think it's still very speculative we've already seen big highs and big lows and i think it's still rocky i do think that crypto is coming and to stay i think right now it's a lot of speculation and until it gets adopted and we start seeing businesses move that way i'd stay on the sidelines and it's not a part of our investment strategy at ramsey solutions either so there's that too which dave you're far more versed in that than i am it's had an incredible year yeah people made a lot of money out this year without a doubt no question about that um but they make a lot of money on cocaine too and they make a lot of money on uh you know playing futures and they make a lot of money at the blackjack table and they make a lot of money betting football but these are not investment strategies that's correct these are these are uh things that you can jump into or jump out of that are uber unbelievable high risk and so the problem is is that people don't perceive the risk in bitcoin and it's there it's it's a it's not it's not fully adopted they made a lot of money this year i made a lot of money in gold a few years ago too and i'm telling people not to buy gold and all the gold bugs are going dave ramsey's an idiot he doesn't understand no dave ramsey completely understands i've lost my butt in a bunch of high risk investments over the years i quit doing it i don't like having to start over it's too expensive so if you want to start over play crap that's high risk if you don't want to start over do what you're doing but you're not going to convince friends who are making a bunch of money that they're stupid just let them be stupid and smile it's okay [Music] [Applause] [Applause] [Music] so [Music] so in the lobby of ramsay solutions on the debt free stage eddie and lindsay are with us hey guys how are you good how are you better than i deserve welcome where you guys live st louis missouri awesome and all the way down here to do a debt-free screen yes sir very cool how much of you guys paid off 105 103 love it how long did this take 16 months good for you and your range of income during that time uh 120 to 175 000. wow what do y'all do for a living um i am a revenue management analyst for enterprise and i'm a policeman awesome very cool very cool good deal good for you guys well done what kind of debt was the 105 000 uh well for both of us having four-year degrees it was everything but student loan debt so everything bought we had two cars we had irs debt we had a lot of child support debt we had two phones credit cards furniture so you're like normal you name it everything but the student loans you were normal yeah so how'd you get by with the irs sorry that would be me all of my secondary jobs a lot of them are 1099 jobs oh okay and you just didn't pay the taxes on that i just waited till the end of the year and made payment plans each year yeah and they just kept stacking on each other yeah they do yeah and it's expensive the penalties and the interest both are expensive yeah wow excellent excellent excellent good job you guys i'm so proud of you so what happened 16 months ago they got you on this journey well actually kind of before that before we knew you were kind of anti-dave i came in do you think i came into the relationship with the back child support and the back taxes and then we got married came back from our honeymoon and of course my car had over 200 000 miles on it so i bought a car then since i bought a car the credit union offered me a ten thousand dollar credit card which i took of course then the next year her car broke so we bought her a car because you can't have a car breaking absolutely not and then uh when that happened we upper that ten thousand dollar credit card to twenty thousand dollars yeah and then uh yeah so i kind of took over from there um i grew up wait stop yeah all right um i grew up like in a dave-minded family my dad you know worked so so hard and gave us a great life and paid for my college and my first car and i still managed to screw up along the way so him and i started in this together once we actually heard about financial peace at church and we thought it was a scam because church are known for scams we blew past that and then listened to the podcast a few years later and it sounded like home to me it sounded like everything i grew up with so me as the nerd i set up our you know eight tab excel budget and came to him with one of my you know yet another crazy idea that i'm known for doing but he started listening and we both jumped in feet first i sold a ton of stuff my coach her gabby's travel volleyball team so we get the opportunity to do that but still save money along the way and then eddie is the true hero here even with the political environment that we're in he worked 80 plus hours a week of you know on the streets with his police force and then secondary sleeping two three hours a day so none of this would have been possible without him wow wow how long have you guys been married five years on friday hey congratulations so five years but then 18 months ago approximately the podcast started sounding real both of you jumped on and did it eddie went to work you went crazy yeah he i mean he's always been working you know a lot of secondary but it you know the money was just kind of flying out the window and we weren't sure where it was going until we put it all down on paper and started checking things off and seeing seeing the progress really helped you know what's interesting is hard work isn't as hard when you're getting traction yep right yeah i was going to ask similar question was there a point where you guys said oh this is momentum now we're feeling it do you remember that point in this journey positive yeah i mean when we came into it again you know i grew up with all this but i didn't think it was possible for us with the mountain that we had in front of us you know my parents my dad was really successful and you know so of course it made sense that my parents were there but for us to do it it just it seemed like the mountain was way too high but when we started and you know we started paying attention to where the money was going he was bringing all these huge secondary checks in and to put them in the right spot and see that pile you know get bigger and you know knock a debt off and then you know really see that snowball go was really really exciting and you know he knew all his hard work was paying off and all our time apart was was paying off yeah and it's like one of the things that you say a lot dave once we started managing our money right i got had a lot more opportunities for more secondary and more opportunities to make money that we could put in the right spot so back back to ken's question a little bit because i think it's a great question how far into the 16 months were you when you kind of went dadgum this is going to work i think when we paid off our consumer debt and i started seeing that we all of a sudden we didn't have consumer debt anymore and we just had a couple of the bigger mountains and god kind of kept providing what were the big mountains the cars the cars and the the irs that was the monster we were able to break it up so we attacked it as we went but as soon as we weren't seeing those huge costs how much was it it was over 13 000 when we started but there's 105 000 so it was the biggest uh so you had a whole bunch of little ones we had a whole bunch of little ones childhood like like twos and fives and sixes and fours and yeah all the way up to to get there to get to 105 with 13 being the big one so you really had a very legitimate snowball effect because you're you're getting to see this these things go away all the time all the time there's another one going away yeah our list was huge but you know it they ticked off as we went and it was yeah i mean almost every month something went away yeah yeah that's pretty incredible good for you guys so fun all right when you back up now and you pan out yeah and people go wow it's impressive paid off 105 000 how did you do that what is the key to getting out of debt i mean i stared at our budget every day at work i had it up and i was working and i'd pander the budget and we'd watch the secondary checks come in and it's honestly just every day doing the small things and you know putting the money in the right place and every day focusing on it being intentional makes a big difference yeah if you back up to the big picture i never thought we'd get there but when we just looked at every day they started to add up and go in the right direction yeah the little pot little foxes spoil the vine yeah that's good as much as uh like we keep feeling the the little wins as we went we actually came here in january on one of her volleyball trips and when i was here i don't know if you all remember me not i had a big boot on because i broke my ankle and i broke it in december so for the first time and i couldn't tell you how long i had no secondary no extra income coming in and we actually kind of freaked out because we're like what do we do now and we had started baby step three at that point in time and we made it through those months before i was able to go back to work without i mean we lost uh momentum going forward obviously but we didn't fall back any because we all those bills were paid off we didn't have all these bills to pay we never would have made made it through that number yeah you were dependent on the second income to survive before correct yeah wow very cool guys i'm so proud of y'all who were your biggest cheerleaders um definitely each other um and my parents were huge for me okay so did you end up going through the class at the church after all never did we still want to just did the that's okay just did the podcast yeah just keep podcasts obviously since i'm in a car all the time i listen to you even still i listen to you non-stop unfortunately well well fortunately for me i appreciate it yeah so we're going to give you a a a one-year membership to ramsey plus so you can go through financial peace university it's time you did it now thank you that's awesome that'll be your your prize for being here today we're so proud of you guys well done well done well done all right and uh gabby survived it looks like she made it through this process just barely she just barely we almost sold her off but she made the cut we couldn't get enough for her well maybe you can get her some new jeans so bless her don't worry gabby dave doesn't know that that's a joke all right eddie and lindsey and gabby from st louis 105 000 paid off in 16 months making 120 to 175 count it down let's hear a debt-free scream three [Music] [Applause] i love it that's so fun what a neat couple a neat family beautifully done this is the ramsey show [Music] so [Music] [Applause] [Music] ken coleman ramsey personality is my co-host today our question today comes from blinds.com they have a 100 satisfaction guarantee means even if you miss measure you pick the wrong color you screw up like i do sometimes they'll remake your window blinds free you get free samples free shipping and with the new promos they run every month you can save even more this is an incredible company i've endorsed them for years and i did for a reason they do a good job use the promo code ramsey to get the best possible deal today's question comes from david in new jersey he asked is it smart to get my doctorate in physical therapy even if it costs 100 000 after graduation i'll make around 75 000 and can cap out at around 110 000 in salary i would not mind working 60 hours a week to pay off this debt well it is not smart david if you go into debt for it um because even though you're willing to work hard this is just an unnecessary millstone around your neck now if you can be patient and you can save up this money and cash flow your way through it to then increase your earning potential over time investment ability to be able to become a everyday millionaire then it is smart but until then it is not smart to go into debt which is what this uh insinuates to get the doctorate in physical therapy so the irony of this ken is is that if you are in pt you meet people every day all day long whose life didn't turn out exactly like they thought it was going to yes these are people whose lives were interrupted by an injury mm-hmm you have this plan figured out that your life is not going to be interrupted by anything and so i'll just work hard and pay off the debt uh let me help you with this your life is going to get interrupted about the only thing you can count on is that it's going to storm about the you know you can just count on it and so you know the the assumption of debt is always a little bit shows a little bit or a lot of naivete yes meaning uh well i i can pay the car payment says the guy who's getting ready to lose his job in two months because of covid or i i can i can afford you know when i can afford it means pay the payments these are what broke people say wealthy people say i can afford it that means they're getting ready to buy something and own it yeah there's no payments involved it means two different things i can afford it if you want to be mediocre financially means you're going to go into debt and you hope your little plan the best laid plans of mice and men works out to your benefit only it won't yeah so i want you to be a pt if you want to be a pt i do not know i'm racking my brain do you know if you have to have a doctorate to do that not have to have a doctorate so uh this is implying that again he's hopping out well he's also i think it's table stakes and it's not it's not we talked about this again a degree is not a guarantee that you're going to get the job you want or make the money that you want to make you're still going to have to put the work in so it's better off to be patient save up the money cash flow your way through then when you get the windfall of that sacrifice uh okay i i don't know i mean i've been to a physical therapist but i do not know what you have i assume you have to have obviously i mean i was aware that you got a master's even yes npt yeah but i was not i've never seen that you had to have a doctorate to play you do not you do not okay so what does a doctor give you just access at a hospital that maybe you wouldn't have i think additional income opportunities yeah and probably placement that helps with that income but you don't to actually do pt you don't need that yeah there's no question about that you definitely don't have to have a doctor this is topping out the highest level here uh and again i'm not super aware um of all the levels of physical therapy but this implies that you can get the doctorate but again it's smart if you cash flow it sure if that's the level you want to get to yeah if his assumptions are right and i'm starting to wonder now if this is yeah i don't know yeah i'm taking my face value that he's done his homework on this and that you know there is a doctorate yeah but every time someone thinks they have to have a degree to play i almost always know they haven't done their homework there's a few times i mean you have to have a law degree to pass the bar yes to become an attorney you have to have an md right or a dds if you want to be a dentist or a medical doctor right i mean you have these are this these are table stakes to play that's that's the law it is it is an end you know it's what it takes to get to play at that table you have to have a master's degree in counseling to get licensed to do counseling in most every state if not every state now sure and so that you know having an undergrad and counseling is not going to cut it that's right if you want to go into that world so that that that is what it takes to be qualified literally but this idea then that oh it's going to help me or i'm going to be successful because that's what you want to break the back of and not be stuck on that because sometimes it could be that instead of getting your phd you need to open your own pt outfit and run your own dead gun business and have six pts working for you and that's that's the path right there you know i mean that's gonna make you a lot more and stick a phd and it costs a lot less too so um but i've got a phd i'm you know you know well you do i can't wait to call you doctor phd and dumb i know i've heard that line i was waiting for it i liked it okay it's grandpa joke theme hour okay uh having a business can be overwhelming and lonely but it doesn't have to be with the right training and support there's nothing you can't do business boutique academy is on the way with christy wright that's right ladies uh equipping women to make money doing what they love christy will guide you every step of the way through business boutique academy with her online training group for women with businesses enrollment for the academy is open until april the 22nd just a couple of more days and it's only open twice a year so don't miss your opportunity to get the training the tools the support you need to start or grow your own business join the academy at ramseysolutions.com academy and become a part of the incredible community of women who are making money doing what they love now christy puts some real solid tools in people's belts to cause them to to to make it work open phones at triple eight eight two five five two two five eddie is with us in waco texas hi eddie welcome to the ramsay show thanks so much mr dave how you doing today better than we deserve sir how can we help uh yeah so i had a couple of questions i'm a young guy and i'm just kind of starting off on like my path to life uh i actually just enrolled in ramsey plus and trying to learn about money through your show and your programs and stuff like that i was just wondering what are some ways that i can practice money discipline in life well i'm sorry what type of money discipline what are you saying i'm confused okay let me rephrase that um so in the past money wasn't talked a lot in my house and i recently got a financial opportunity where i significantly increase my income from forty thousand dollars a year to sixty thousand dollars a year way to go dude what are you doing uh well i just got called up on orders in the national guard okay all right and you said you're nineteen uh yes sir wow okay well thank you for your service to the country sir and congratulations you're doing something very wise to say ooh ooh all of a sudden there's more money than i've ever seen before coming at me and um it scares me a little bit uh that's the that's the the voice of wisdom you are being very wise people who go oh i got some money he ha let's have a party that be some of your buddies okay and you really don't want to be like them so i don't want you to not have fun i just don't want the fun to have you i understand and so really the answer to your question overall thank you for getting into ramsey plus and and doing that but your the answer to your question is simply this if you will do what you're doing today by calling in and that's pay attention make every one of these dollars be on an assignment as if it were in the military and was on mission and the mission can be i want to go out friday night with this pretty girl that's a mission and that's an okay mission the mission can be i'm saving up to buy a car the mission can be i'm going to be generous to this single mom the mission can be i'm going to buy some food for my refrigerator the mustard's running low i don't care what the mission is but it's done on purpose not chaotic and not random and not impulsive it's a detailed game plan that makes sense yes sir so um i was blessed to do a little training uh where i got my butt kicked uh for for a few minutes with the navy seals last year on one thing and one thing they taught me in that in a high impact highly violent situation like they go into all the time they spend about 5x time planning the mission of actually executing the mission five times as much time on the planning as they do actually doing it so that the doing it becomes automatic and intentional and that's true of anyone who's successful at anything they don't win by accident this is the ramsey show [Music] this is james childs producer of the ramsay show you can listen to all our shows with the ramsay network app on your smartphone browse by topic or even sync clips to your friends download the ramsey network app in your favorite app store today this is the ramsay show [Music] you can be intentional about your character you can have money and a career you are the hero in your story [Music] live from the headquarters of ramsey solutions broadcasting from the dollar car rental studios it's the ramsey show where debt is dumb cash is king and the paid off home mortgage has taken the place of the bmw as the status symbol of choice i'm dave ramsey your host ken coleman ramsey personality host of the ken coleman show is my co-host today he talks about careers and jobs which means we're gonna talk to you about your life your money and your career today open phones at triple eight eight two five five two two five that's triple eight eight two five five two two five gina is with us in san francisco to start off this hour hi gina how are you hi how are you dave i found you on youtube and found your um your pup so very very informative thank you so my husband died three weeks ago oh my gosh yeah cancer oh how old was she 38 only oh how old are you i'm 35 how long were y'all married about eight years oh baby i'm so sorry three weeks ago so you guys have been through a long struggle hadn't you it was it was a you know beautiful marriage and not so much struggle no i mean with this i mean how long was how long was he with a cancer diagnosis oh two years it was a it was a rough fight yeah that's what i mean so um my question is what should i do with three things that he loves us he has life savings an insurance payout and a 401k um to protect it from inflation that's my goal yeah what is your advice ah okay so how much life insurance life insurance um well we'll probably get around 20 to 50k okay because um how much was it how much was in the 401k 401k around 20k also and you did you say life savings is that what you said his savings because we we didn't really have a joint right how much was in the same 100 how much 200 200 000 what is that in just a savings account yes i already um closed it and put it on a custodian account which is my son's you put it into your son's name my son and my name so it's a custodian account under both of our knees okay a custodian account is open for a minor the custodian is not the owner custodian is the manager and if the only way you have a custodian account it is not in both of your names because you can't do a custodian account for an adult right i'm the manager so you put it all into your son's name and you're the custodian when did you do that um in the last three weeks right yeah yeah okay all right um okay uh um all right the first thing is is that we want to make as few big decisions while you're while this um event while this pain is so fresh okay because um if my wife passed away three weeks ago i make money decisions for a living i teach people to make my decisions for a living i'm not making any big decisions in the first three weeks i'm just gonna cry i'm just gonna cry okay you don't you know you're in the fog of grief no human being's brain works well okay but you're gonna have to go ahead and make some decisions because you made a bad one this this move to this custodian account needs to be undone very very quickly because you've made up you you've made a mess and i'm not picking on you don't misunderstand but you cannot move money of that size from one individual to another individual like your child for instance without gift tax and so you're you've gotten yourself into a problem here and i don't know who told you to do this but they were not giving you good advice and and that money doesn't need to be in the child's name anyway it needs to be in your name because it's your money and you need to be managing and yes we're going to take care of the child that's what mommies do and daddies do but uh the money does not the bulk of your net worth does not need to be in your child's name that that's a mistake okay and and so what i am going to direct you to do is go to daveramsey.com and click on smart investor and you'll you'll find some people in your area that we recommend that have the heart of a teacher and they're going to teach you what to do next gently calmly and you're going gonna understand it before you do it and you're gonna i mean this week kiddo undo this because i don't want that i don't want the irs getting wind of this i don't want you to get hammered with a gift tax here okay okay so we do our or you can park it just in a money market while you cry a little and then learn about investments later but you don't have to be sophisticated three weeks after your husband passed away honey give yourself a little room okay all we have to do is keep the lights on and keep groceries in the refrigerator that's all we gotta do right now now what about the insurance and the 401k same thing same thing i want to spend and make no big decisions if at all possible for about six months i'd like to just sit in a i'm not worried about inflation for six months i'm worried about grief okay and um this is what i personally would do if my daughter called me who's your age and said that something happened i would say listen what we're going to do is do the least number of decisions we can do for six months and we're just gonna cry and then when and every day that goes by your brain will get a little bit clearer and a little bit clearer and a little bit clearer and it'll always hurt but 25 years from now it won't hurt as much as 25 days from now does that make sense yes and i'm not saying you're an incompetent person i'm saying you're in an in a situation where you don't need to make big decisions you can if you want my advice is to not do that though so i would sit down with a smartvestor pro i would move it all into a money market account you can roll the 401k into an inherited ira without any trouble at all you're the beneficiary on it you can move it it'll have no taxes on it they can show you how to do that and you don't have to make a bunch of big investment decisions now later on i'm going to go into mutual funds after my after everything clears in my brain i personally invest gina into four types of mutual funds growth growth and income aggressive growth and international and i spread it evenly across those if you do that you will outpace inflation considerably uh inflation has run 4.2 percent for the last 75 years according to consumer price indexes cpi and that's our measure of inflation we're probably getting ready to see some new inflation so it's wise to think about outpacing it with these uh building shortages that we've got supply shortages and things now we're going to see a little of that come back for the first time in a couple of decades really but in the mean but you're still gonna be okay you gotta out you gotta make more than about six percent on your money to be taxes and inflation to break even taxes are gonna take up about two percent inflation's gonna take up about four that's six so if you don't make over six you're breaking not breaking even taxes and inflation but that's your long-term play kiddo it's not the next six weeks not in the next six months i'll tell you what hang on kelly will pick up and she'll get you with one of our coaches for free we won't charge you anything and then get you with a smart buster pro and walk with you through this i'm so sorry [Music] [Music] [Music] while our famous ten dollar sale is back get the tools and resources you need to make real progress with your money and your life goals all for just ten dollars a book that means saving up to 60 percent on over 40 best-selling books like the number one bestseller the total money makeover or ken's book the number one bestseller the proximity principle about getting the job you love these also make great gifts head to ramseysolutions.com store check out the 10 sale these are hardback number one best-selling books in almost every case all bestsellers for 10 each and there's more we've got a gift for you too you can enter to win our ramsey cash giveaway we're giving away 500 cash every week starting this week plus a grand prize of 5 000 cash so enter daily for extra chances to win no purchase necessary you got to be 18 or older of course text cash to 33789 and check out the 10 sale at ramseysolutions.com store michael is with us in detroit hey michael how are you i'm welcome to you how are you doing today sir better than i deserve how can we help so i'm um i'm very thankful and fortunate for on that um i've saved and scrimped a lot in my life and i have a pretty good savings and um i grew up in a very very poor household and it was homeless for a while and i'm debt-free and i'm too concerned that i'm not maximizing what i could be doing um my goal really is to leave behind some generational wealth for my children um but i'm pretty nervous when it comes to real estate especially i've been listening to a lot of folks whether their homes you know people aren't being forced to pay their rent and then the people that own these properties are you know losing them so i'm just looking for some guidance on you know what someone in my position could do i'm sorry what to do with what you want you want to build generational wealth and people are losing their houses because they don't pay rent i don't i don't understand yeah so so look for for a better investment so you know right now i'm maxing out my 401k to the legal limit and i've got some um i've got some you know investments in some mutual funds but i'm not really especially uh assumed i guess in investing um and so i'm i know that you speak a lot about real estate um but i was wondering if you just had any guidance on you know how to how to maximize um returns if you're a little skittish on on real estate okay i um if you're asking what to invest in number one all investments have a level of risk period and that means there's unknowns that means things are going to happen that you can't predict and that are going to that obviously if you knew a negative thing was going to happen you would not be in that investment we all would avoid that that's obvious but there are all all every single investment has a risk okay now let's start with like a savings account you could open a cd and make one percent on your money and you don't have any risk oh yes you do wait all investments have risk what's the risk of having making one percent on your money well we just talked about a minute ago inflation runs four percent 4.2 and taxes are going to take a fifth of what you make a fourth of what you make a third of what you make okay and so you got to make six but you're only making one and so you are losing five percent a year in purchasing power when you save money at one percent so you just picked a risk a an investment that you thought had no risk and you pretty much guaranteed a loss in purchasing power okay so that one doesn't work that's one end of the spectrum the other end of the spectrum is doing high risk things where you lose all the money and you play you know you go to the roulette table or you play bitcoin or you play gold or you play uh you know you bet football or i don't know whatever you want to call these things that are gambling in essence and you hope that you hit and you think that you're the exception and you're going to hit and we don't do that one either so what we do play in is in the middle uh and in the middle i found two things that i'm comfortable with the risk and with the returns and that's real estate which has some risk the renter may not pay the house may burn down it may get flooded a tornado may hit it a tree may fall across it um some government agency may lose their dead gum mind and decide covet means that they have the right to take over the freaking world oh wait that just happened and so uh you know they shut down you know i had a guy in one of our properties who was beating his wife drinking and tearing up everything had nothing to do with covid it had to do with he's an idiot and we couldn't get him out because they had a moratorium on evictions because of covet in tennessee that's been lifted thank god and we got we tossed that piece of trash out um bless his little wife's heart you know oh god what a mess and so you know but this is a risk of owning real estate and people say well i buy real estate renters will always pay anything about renters so uh you know some do some don't and you do your best just like not all employees work hello and so um this is these are risks you take so you assess the risk versus the return and you accept the risk pretty much know you're going to have some of it and that goes with the returns and if you measure that out that's what wealthy people do and so i buy real estate and accept the risk and i love the returns i buy mutual funds and i accept the risk and i don't and i look for the returns i don't buy single stocks a valid investment but too much risk for me but versus the return i get i i've been broke and i don't need to lose my money and so i don't put all my money or a bunch of my money in one company uh although had you put it in apple you would have done well had you put it in microsoft you would have done well but i don't do that i've got friends that have done all kinds of single stock investments and it's like a fishing story they always talk about the one they catch right they talk about on the golf course right oh sure and they always got a story so but it's a risk analysis michael that's what you learn to get used to there is no formula where you don't take risk and you make money doesn't exist yeah it just comes down to how much risk you're willing to take and again i want to dive a little deeper on that because i know that advice and i've heard you give it many many times you're not saying that it's it's wrong to do but it's just really really risk and you've learned over time with your track record of investing and the appetite that you had for risk coming out of getting debt free i'm just not going to play that game it's not worth it and that's that's really what what we need to hear i mean you could certainly invest in a single stock but you got to be on top of it or you lose your shirt you got to really know what you're doing i mean i could take ten thousand dollars and put a slot machine right but i just don't i just don't like the payout probability and that's really important yeah and uh but that doesn't mean that doesn't you know doesn't mean you sometimes you don't hit on a slot machine right but i guarantee you i do know who hits on the slot machine yeah the casino oh yeah they make money on them every day yep no one else does yeah so i mean you start to learn these games and you go that's the game this is going to miss the game so i'm going to measure the risk versus the return and i'm going to accept the risk to get the return and if you don't take enough risk you get tackled from behind by inflation and taxes if you take too much risk you you lose your money i'm going to ask you this when you invest into real estate of course now you're paying cash here so we're talking about cash investing in real estate what are the risk meters you run through before you buy a house that you're going to rent what are you looking at are you looking at neighborhood of course you look i mean what are some of the things that people need to think through well the first lens we look at is you make your money on the buy right and so is it a bargain mm-hmm which there's nothing bargains right now right market's white hot you're not a steel you know we bought a lot of foreclosures we bought a lot of stuff in 2008 when the market went down all that but there's no there's no bargains in real estate right now so i'm not buying real estate right now i'm building some but i'm not buying any um and so uh the thing is the um you know i'm looking at the bargain on the front end that helps me yeah because that lowers your risk then so if you've got a property that's worth 300 000 and you pay 180 for it you just limited your risk yes and now then obviously you got to look at the property and go is this marketable i mean if it's a weird twisted up floor plan that's not rentable or resellable then there's a reason it was a bargain it sucks right you know so you just gotta you gotta use some common sense and go somebody walks up to this or they're gonna wanna rent it somebody walks up to this later and i wanna sell it are they gonna wanna stop by and so we're looking at the curb appeal the quality of the property the location of the property um you know you know and and then what are we going to rent it for what's the rental market versus what we pay for it and that's your return on investment it's a fairly simple equation and so but there's a lot of common sense that's why it's good to buy real estate in your area because you inherently intrinsically know the area this is the ramsey show [Music] [Applause] [Music] [Music] [Music] in the lobby of ramsey solutions on the debt-free stage jarrett and laurie are with us hey guys how are you hey dave how are you welcome it's so good to have you guys where do you all live uh we live in houston houston texas welcome to nashville very cool and all the way to nashville to do a debt-free screen yes i love it how much have you paid off uh six hundred 419 ninety dollars i love it and how long did this take four years four years and your range of income during that time between 250 and 350. yo y'all are killing it what do you all make what do y'all do for living oh uh so i'm a nurse anesthetist and my wife is a dentist oh nice career choices ding ding well done i love it so four years 420 i was going to say house but when you told me your careers i'm going to say student loans yeah pretty much eighty percent of it was all student loans a lot of student loans and the dentist usually more absolutely well actually i i had a lot from anesthesia school okay so i had a lot from school so about even then huh yeah about even yeah all right couple hundred each yeah yeah but you're making bank now wow well i'm so happy you guys well done okay so how long have you been out of school uh so i graduated in 2011 and then i graduated in 2004. okay so you've been out a while you're bopping along making some money but this monster is hanging behind you yeah dark cloud is following you everywhere that's the thing with student loans like they just follow you and follow you and then so what what woke you up you said we're gonna kill this thing monster be dead uh it was really my wife just one day she just got tired of you know me always buying stuff and you know you just you get paid because you feel you deserve it and you're trying to keep up with people buy nice cars you know go place a vacation so one day uh she said hey you want to go on a date with me and i said yeah let's go on a date and then she's like when i get there you know you're there it's like a smart money conference and that's out of trouble that's wrong that is wrong she totally just i was like oh i thought we're going to date and it was it was like a one day conference hey you had to sit there listening to this guy all day i gotta know hold on what at what point did you know you were going to a conference was it that morning no it's like i pulled up i go in and like we literally we start walking to the building i said hey is this like a conference and she said yeah it's like it's dave ramsey smart money is something so you know it's cold it's very smart and probably about four hours into it i started i was like you know what you're right like we really should get on a budget you know i've been spending too much money you're right we need to you know communicate communicate more and uh you know just drunk the kool-aid so after that what year was this this was uh 42007 so it was it was a smart conference yeah smart conference yeah money was just part of it yeah absolutely yeah we had everybody else there yeah so you had a rachel was there inky johnson yeah yeah i remember that one yeah rice church yeah yeah absolutely inky's a great speaker yeah it was amazing and then after that so then we started looking for fpu so then we got an fpu at our church um our you know our fpu mentors like just walked us through we even went again to fpu after that so like they like they really supported us the whole time because four years it was a it was a long drag yeah you are a patient man i i i i'm pretty calm with sharon i'm not sure if she tricked me like that i'd have been okay with that yeah but it was well you did well you did well he's amazing that's cool yeah you had a lot of trust in her yeah very cool yeah let's go on a date all day long wow but it changed your life change changed my life and then after that i mean even our fpu just just kind of going through it because then you go to the conference and you're like okay well let me get into it and then that's nine weeks and our fpu mentors yolanda and stan and they walked us through and you know you start using cash for everything you you try to i mean we did everything try to change our cell phone bills how far were you through the 420 000 before it kind of clicked and you went i thought this was going to work but now i know it's going to work well see that's the because you intellectually get it yeah yeah then that's like why you always say like yours like it's common sense you know it makes sense but just it just kind of just comes like one day you realize like you're spending cash for something you're not buying stuff you're not going on trips for me i used to buy tennis shoes all the time like you know spend 100 on some you know jordans or whatever and then just one day you just realize like hey this money is actually going down like this interest is is moving so it just kind of sneaks up on you like it's it's kind of cool do you remember uh uh lori where you where you were in the numbers before you went well this is actually going to work it clicked for me when we paid my car off and i was driving my car around with no and you know no i that never had a car without a note oh yeah so that is when i said this is freedom yeah this is it right here and you lean in even harder yes yes yeah that's fun man you guys are impressive i mean impressive incomes and careers but i mean what a lot load of debt and you did it in four you paid off a hundred thousand dollars a year average for four years yeah it was rowdy what did you do to increase were you working more hours uh yeah so some days i was working six days a week i was working 24 hour ob shifts i would do gi shifts sometimes uh just work work work work work work work there's no shortcut is there no shortcut you just work and then you know the other part of it is you just stop spending money you you know you just you can't spend money because you're working yeah you're not you're working yeah so that's a good point yeah yeah yeah so you just keep going to work and you just spend less money you try to figure out you know get rid of your cable we did the streaming thing we did low cell phones uh you know once you get rid of your car note and you start and that money is yours you're like wow that's a that as a snowball so you just keep you know pushing along yeah and that was all ours yeah yeah i mean four years later you you break through and you finally finish how did it feel yeah i mean like what'd you say invigorating invigorating was go to on a ski trip and just wild out yeah why not yeah you're making you're making three you're making 300 grand you got no payments yeah where did you go where was your ski trip we went to keystone colorado yeah that's nice keystone yeah yeah they they they used to have night skiing do they still we didn't get a nice game we taught ourselves to ski on youtube oh yeah like for those sharp young men right there who went through all this too you know they were with us the whole time because we when we went to fpu was at church so we would bring them with us so they sat in the back and then so we went to fpu twice with them they listen to you all the time like even we're sitting here in the lobby and they're like oh dave ramsey like we know this music because the podcast is always on in the car so they've been with us i mean it's pretty much feel like their whole life they're 12 now so you know we started they were right yeah they're yeah they're eight so they were just like oh they're twins yeah they're like awesome okay what are their names so this is uh shawn right here i'm looking down yeah yeah this is an eight yeah oh that's so cool you guys very cool all right when people ask how you did it what do you tell them the secret to getting out of debt is uh budget 100 like if you don't know where your money's going you're not gonna you're not gonna know where your money's going so you know you just gotta got a budget uh communicate be on the same page we would have budget meetings and they would be fun i started doing spreadsheets and you know they were yeah like we just made it fun like we're like oh this is where this is where we're going to do with our money so uh that's the number one key once you do that and then you commit to it it's gonna it's gonna it's gonna happen yeah you know i i do notice a lot and i don't know that we've ever said this out loud a lot but i notice a lot with the debt free screams that uh it's not unusual to hear you kind of make a game of it once you get to a certain point and the desperation starts to fall off and the hope starts to come it's like okay this is like it's like a game how fast can i do this it's like you know i'm trying to beat a video game or something you know it gets that same kind of thing happens starts happening in your head and it's like he started doing that that spreadsheet he had that look you know what i'm talking about he's like yeah yeah yeah cause you start to feel it and you go yeah i'm gonna i'm gonna beat this thing i'm going the next level yeah absolutely very cool very cool you guys so well done and so you had all kinds of encouragement from fpu you told you mentioned your mentors yeah that's good that's your biggest cheerleaders all right all right nate and sean baby four years coming debt free scream you've been hearing them now you are one get ready to do it whole family tree has changed your mom and dad are absolute heroes man you guys are rock stars it's an honor to meet you 420 000 paid off in four years making 250 to 350. count it down let's hear a debt-free scream one two three four [Applause] [Music] [Applause] [Music] [Applause] [Music] [Music] our scripture of the day second ephesians 2 10 for we are god's handiwork created in christ jesus to do good works which god prepared in advance for us to do c.s lewis said you are never too old to set another goal or to dream a new dream it's an interesting thought from ephesians there can which god prepared us in advance or god prepared in advance for us to do good works yeah and you know you always say you're put on this planet to do something you don't do it somebody's missing out that's right you were created to work and you're created to do some you know you're giving a certain set of skills and god's got a certain thing in mind now it's not if you miss that one little nuanced thing that you missed god's will we're not fatalistic about it right but there you know there's a range of options but you know you're put here to do certain things with your gifts and talents and if you don't do them then the culture society that's right the nation the world is let down that's right your purpose isn't actually about you your purpose is to give yourself away you were gifted with something to give away and you know look if you take the word work out and i say created to contribute people go okay now i can buy into that his work's at this nasty ugly word about it unfortunately because of the toxic view of work in this world but yes rabbi lapin uh orthodox jewish rabbi who wrote um uh uh thou shall prosper i can't get it on my mouth um it says that the jewish view of work is very similar to the jewish word for worship that the way you do your work is a method of worship and i love that yes that picture that's a beautiful thing so ken is doing a week from tomorrow night the um get hired event it is a live stream this coming a week from tuesday night it's 20 and if you want to view it we've got a few slots here live in the building for a live studio audience purposes but just a handful if you're here in the nashville area and want to come if you want uh to view it and people are going to do that literally all over the world tickets start at just twenty dollars and you uh can text hired 233 789 to learn more the get hired event tuesday april the 27th text hired 23789 courtney's in birmingham hey courtney welcome to the ramsey show how can we help hey dave hey how are you better than we deserve what's up um so first off i'm gonna say you have completely changed my family's life you completely changed our life and pretty much everyone that we know thinks we're a little bit crazy so i guess that's good but my main question to you is this is my husband has been put in for a promotion and with that being said they are giving him a car allowance and there are requirements on the year and the the model and such so everything i'm looking at is a ridiculous amount of money for a car um what does he do we're not so he would be as like a sales rep for heavy equipment okay that's what he would be going into that's the promotion they put him into which is great you know substantial amount of income increase but we're in baby steps four five and six what is the uh what are the requirements on the car so it has to be maximum is five years um that it has to be and then under 120 000 we we drive old old cars what is he going to be making um so he would be making um starting out on scholarship he would be making right at 60 000. what's scholarship mean um before he goes on commission when he's on commission what will he be making do you think um the guy that was in the area before him was bringing in between 80 and 100. okay what does he make now right now he makes 42. okay cool and um you don't how much money do you have in savings right now we have just baby step three which would be 15. okay all right and when will they be moving him into this role may 1st okay all right so he needs to negotiate with his supervisor to give you time to save up to buy a five-year-old truck okay and because that's what he's going to be wanting he's out calling on heavy heavy because here here but here's your rule you always want to drive the cheapest car possible to get the job done now you're going to lose money on the car allowance how much is the car allowance so the car allowance is 600 yeah you're going to lose money yes that's only 7 200 a year and a stupid 20 000 our truck is going to go down that much as many miles as you put on it absolutely okay so the car allowance is not a blessing it's it's it's not a benefit now they walk around strut around with their chest stuck out like it's a benefit it's not they're ripping you off it's a bad deal the good news is he's going to triple his income and so it's probably worth it okay but the car allowance sucks i would rather them give him a truck as a company car as a company just give me a company car and keep your 600 bucks you would come out a lot better that's this is the reason they don't do it yeah yeah and 600 is everywhere lots of people have 600 car allowance so but you're going to lose money on that with a loss in value not to mention everything else that you're going to have so what you've got to do is you have to continuously fund a move up every few years in truck to stay within the guidelines right and so out of your overall income which includes the six hundred dollars but the six hundred dollars is just part of your income you keep saving money to move up in truck every so often and you keep a a four five six year old truck and uh because whatever he's driving he is destroying its value because he's putting a bazillion miles on it and he's on rough sites so he's really putting hard miles on him yeah so whatever he drives it's a cost of the job so you're gonna lose 10 15 000 a year on this operation and you're going to receive seven so just kind of count on that that's okay i'd still do it because i think the promotion's big enough to justify it but if they were giving him a 5 000 year raise i'd turn the promotion down okay because it's not that great a deal on the car part of it the car part's a bad deal okay but go ahead and talk to your supervisor and say it's going to take us a little while to save up 20 grand we don't have it and we don't borrow money well just use your car allowance to pay the payment no because if i ever lose this job i still got the stupid payment and i don't have the job anymore so you don't use your car allowance to pay payments so i'll get a truck as quickly as i can the meantime i'm driving this and i'll get one probably about september or so or whenever it is you can save up the money right yeah you work outside the home i work um inside the home but i do what's your household income insurance um right now before the raise it would be 80. so it's going to be 100. so doing that you can save up to get a 15 20 000 truck that'll meet the guidelines barely pretty quick but you're going to have to you won't do it by may 1 so they're going to have to give you a little grace and they will if you just just stand just stand with your heels in the ground and go no i'm not doing it i'm not going into debt to get this promotion if you want me to have that nicer truck by may first you're gonna have to give it to me and you won't give me a company car i'll take a company card rather have that by the way if you you know if they want to negotiate with you so but but they don't they've already they're they're their cfo has already run the numbers he knows what he's doing she knows what she's doing that's why people are getting out of the company car business we see it all every day don't we oh yeah i mean listen they know what they're doing like you said the the financial institutions these cfos the numbers aren't stacked in your favor so don't just take it as well i kind of got to do it and this is a good thing you know it kind of feels good psychologically to hear the turnout i got the 600 so i can use that for a payment they go get like a 600 car payment it feels good it's not good yeah so well because you're stuck you are in you're borrowing money for this major corporation and you're broke and they're not i mean this is this is this is it's the greatest scam on earth but um but it's part of the gig and i'm you know you don't be mad about it i i take i take the job i think the job's a good job um especially right now man moving into heavy equipment with this coming economic boom and construction oh my goodness good time to be in construction so ken good show today thank you sir always fun that puts us our of the ramsey show in the books our thanks to james childs our producer kelly daniel is our associate producer and phone screener i'm dave ramsey your host we'll be back with you before you know it in the meantime remember there's ultimately only one way to financial peace and that's to walk daily with the prince of peace christ jesus [Music] have a friend or family member that needs a daily dose of ramsay advice in their life let them know about the ramsey call of the day podcast it's a quick hit of advice about life and money in under 10 minutes check out the ramsey call of the day podcast wherever you listen to podcasts you

Channel: The Ramsey Show - Full Episodes

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Id: T1vcT6kRPrM

Length: 119min 45sec (7185 seconds)

Published: Mon Apr 19 2021