Sacrifice and Determination Will Yield Financial Freedom

[Music] this is the ramsay show you can be intentional about your character you can have money and a career you are the hero in your story 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 ken coleman ramsey personality number one best-selling author of the book the proximity principal and host of the ken coleman show daily is here to answer your questions about jobs careers money and life and i'm here to help as well phone numbers at triple eight eight two five five two two five triple eight eight two five five two two five so ken 30 years ago approaching 30 years ago um 1992 june so this will be 91 june uh i had just graduated high school does that make you feel old yeah well you're just a pup and um man i got socks older than most kelly as well kelly and i are the same age yeah that's um both of you just shut up but um so yeah 29 years ago this summer wow getting ready to be 30 years anniversary i wander in the back door of a broke radio station and convince the guy to let me work for free i love that because it would be fun i told him if we were really bad he could cut our pay in half and uh we were bad i mean it was daryl and his other brother daryl doing talk radio country fried tennessee hick uh uh accent right have you managed to lock those up in a vault those early shows there's no tapes i mean they don't know the station was in bankruptcy that's why he let me work for free and then they didn't tape anything and we didn't even have a delay if people cussed on the air it just got over the air it was before janet jackson in the super bowl so uh we didn't run delays until after that but uh i mean it was hey we're talking money it's dave ramsey wwtn can we help you this is what it sounded like people it was uh um there's nothing like nothing wrong with sounding that way it just makes the people in boston cringe but um and they think i live in a trailer or a broadcast from a double wide so all these years later about i guess it's about 10 years ago or so talkers magazine we had worked our way up through the ranks of talk radio shows and we got to number three rush limbaugh yeah of course number one and number one talk radio show in america and sean hannity uh my friend sean uh number two and then we were number three and various people uh were floating around four five six glenn beck was there for a while uh various people were hanging out uh in the four five six seven slots uh back and forth over the years but pretty well the three of us were locked in yeah at the top and i kept trying to get shawn to quit so that i could move up and he wouldn't quit um he he likes doing it and um i give him a hard time about it he gives me a hard time about it we i like him a lot and then of course our friend rush passes away this year real sad event and um so the talkers magazine just came out and now i'm number two yeah congratulations yeah not exactly the way i wanted to advance no you know but uh i'd rather just beat somebody you have to just outlive them yeah but you know but that's okay we'll take it so we have 640 radio stations today we are the largest talk radio network in america we have more stations than sean and uh but he has more listeners than we do and so he is the legitimate king long live the king shut up sean but uh uh yeah long live the king dave's not competitive at all neither is hannity hannity's just a little bit wired up i'll just tell you well i sent him an email giving him a hard time about something he zips me back so but he's a great guy and long live the king so he's number one he's got more listeners than we've got we've got more stations but he's got more premium positions uh with listenership than i do across the whole across the breadth of the whole nation of course he's a lot more well-known because he does a fox show and a lot of people a lot more people know who he is than who i am a lot more famous uh but i'm just sitting over here at number two and he hasn't helped as many people as you have well he might argue that but um he can argue he has the right to be wrong i get to say this about you i know you don't like that attention but you this this is happening i show people how to help themselves yes sure yeah so uh we're just excited about this we are it's quite an honor uh thanks to our friend michael harrison that runs talkers magazine he puts out the heavy hundred every year i'm not as heavy as i was at this time that's an interesting adjective they throw there i don't know where he picked that up michael's a child of the 70s so um for sure and uh he's a great guy too so thank you michael and thank you talkers and that's awesome we appreciate doing the rating and he catches a lot of flack for doing these ratings because it's an imperfect process and you're rating a hundred people with big egos massive [Laughter] so everybody's pissed off a friend of mine was in the 40s and i sent him a text last night i said congratulations and he sent me one back congratulations and but yeah we're all we all uh have to admit we open that thing up and look at it every year and see how we're doing uh although i already knew how i was doing but yeah you know it's it's a nice nice mention and a nice thing and and kind of a sad footnote if you will that you know i've been sitting there at three for all these years for probably a decade plus i'll have to go back and look exactly how many years but right about that it's been rush hannity ramsey rush hannity ramsey and then of course russia's gone and so uh here we are and all we did was give people common sense advice but it turns out common sense is a superpower yeah so there you go open phones here at triple eight eight two five five two five you guys jump in we'll talk about your life and your money and you know ken that um side note on that story is it fits in with the ken coleman show you tell folks to get in proximity yeah and i went down and did that show i i really did not have an intention of having a radio career no just wanted to help people i just saw it as a way i had written financial piece it was in the trunk of my car and i saw it as a way to sell books i saw it as a way to help people get out of debt and i thought if i get on the air and just run my mouth and uh and you know the interesting thing is is the phones have been jammed even as horrible as we were on the air i mean we were just country fried you know i mean it was bad and but people call from day one you have not been able to get through the phones on this show ever ever since i turned it on it's a great lesson there i want you folks to catch this dave had a driving passion to help people who had money problems some people that had experienced what he had and then he wanted to stop other people from falling into that trap and that right there is passion and mission you love communicating you're a natural teacher you were doing in your church you were doing it at the kitchen table then you said well how can i reach more people so let me go try this little country fried radio station and you go on and the phones pick up why and this is the lesson it wasn't because you were a great radio broadcaster and you were still figuring out your messaging the baby steps didn't even exist here's what i want people to hear but what dave was saying is i'm willing to help you with this problem he was very clear on the people he wanted to help this is where mission comes and we talk about this on the ken coleman show everybody wants to do work that matters and you got to figure out who are the people i want to help the problem that they have that i want to help them solve and what's the best solution to help them solve that and you started out not knowing how good it was going to be figuring out as you go but here's the deal people said i've got that pain i've got that problem dave can you help me and sometimes we get so worried about how good it's going to sound or how good our solution is instead of going i know that pain exists because i've felt it and i can help people just be faithful just show up you never know what god's going to do and that's what this whole story is about it's also uh be careful what you wish for that is true this is the ramsay show [Music] [Music] stop paying your overpriced wireless provider and switch to pure talk they use the same network as the larger providers for much less for just 30 a month get unlimited talk text and six gigs of data with no contract the average family saves over 70 dollars a month by switching to pure top just go to puretalk.com and enter the promo code ramsey to save 50 off your first month pure talk simply smarter wireless [Music] ken coleman ramsey personality is my co-host today rena is in seattle hi rina how are you hey dave hi ken how are you better than i deserve how can we help thanks for taking my call okay so my dad passed away who are you exactly two years ago and he left us with the opposite of a legacy he left us with a mess um no will um nothing whatsoever in regards to bank accounts any of that but um so he spent majority of his life living in another country in iran and my mom just recently went over there to kind of try to finalize things and she called me and asked if she could send money over and deposit it into individual cups like my good savings account so because she's trying to avoid any sort of penalties or taxes and i'm serious and i don't want to end up getting in trouble or penalized for that do you know how about any of that or you explain to me how any of that would work i have no idea about iran um i can tell you that inherited money in the united states is not taxable okay so if it's sent over from another country you don't know yeah why does she just not send it to her account i think she's worried that if she sends all of it to her account that she's going to have to pay heavy taxes so she's doing well she needs to get some information and get some knowledge because she's not going to pay any taxes and if she gives the money away she might have gift taxes she needs some money though he left her with absolutely nothing so i worry about okay how much money is involved i am thinking anywhere between 50 100 000. i don't think it's going to be more than that but i worry then when she gets too she's gonna then want me to transfer all of that money or with that to give it to her and then i'm on the line again she does not need to send it to your kids or you she needs to send it and put it in her own account there are no tax implications in the united states for doing that now there might be something to do with iran i have no idea what happens over there um yeah but the uh uh and you know to be super sure she would just contact an estate attorney here in the states that does wills and does probate and he can give her some instruction or she can give her some instruction on how to do this properly but the common sense aspect of it is simply send the money it's your money and you're transferring your money from iran to the united states there's absolutely no implication of that at all yeah okay were they they were married right yeah here's the thing they were married and you were on the divorce in the u.s so how is she getting possession of this money because she's married in iran yeah she stayed married in iran because she knew that he was never going to do a will or anything like that he was in denial that he was even going to die even though he had cancer for alderman given that this is not her husband in the united states um then this is uh like me taking the money from his name and put it into my name so she needs to contact a tax attorney and or a an estate planning attorney but she does not need to send it to your kids that's dumb butt she's going to make a mess your your instinct was right she's going to make a mess and she's acting like she knows what she's doing and she has no idea what she's doing so just get an attorney spend 500 bucks on it get a little bit of advice on how to properly do this because it's very complicated this is an ex-wife by united states law and i don't know what the divorce decree says i don't i don't know that she has any rights to this money i have no idea i because i don't know if the marriage in iran gives her rights to it legally in the united states so that's a that's squirrelier than crud so um no you do not want it going into your kid's name because she might technically be accused of stealing it at some point oh boy i don't know who would accuse her of that who's alive that would care but maybe his brother still lives in iran i don't know so uh there's no will i don't know how she's getting access to the money i guess because she's a wife there i got lee it's complicated now she needs legal advice and you do not put this in your kid's name your instinct is correct that could be a mess yeah absolutely this is why lawyers exist oh god [Laughter] as much as you hate to acknowledge that you know it's it's it this is absolutely straightforward here that you've got to get this figured out before anything gets transferred because iranian law oh boy yeah well yeah and you got to get out of there uh charlie's in cleveland hey charlie how are ya thank you for what you do and congrats on your second largest talk show thank you for reading yeah so my question is uh i have some large life events coming up my wife is turning 50 and next year we're having our 25-year wedding anniversary yay and yeah right it's awesome so uh i was calling to see if the amount of money i was looking to spend was out of line in your opinion um so for her birthday i was looking to spend uh five grand on a gift and for our anniversary i was looking at taking like maybe a ten thousand dollar trip do you have the money so that's an easy question do you have the money yes okay you have the money so are you in debt uh i owe about 85 on my house that's all okay and what's your household income uh it's about 200. so why do you need my permission to spend five grand uh we're pretty frugal and and we do every dollar like we say like we budget every dollar literally uh three hundred dollars for the salt for my water bill we budgeted it good good i mean we do too we have a detailed we're very intentional with our money but we have the money to go on a ten thousand dollar trip and so do you we haven't like set a budget for any of that so i would take it from somewhere else in my on hand cash yeah which i suspect listening to you you're such a tight wide you've got a lot of on-hand cash it's all relative sir yeah okay how much on hand cash do you have so i probably have 50 for an emergency fund i probably got 25 for the next car we buy uh we probably have 25 for an investment opportunity that is going to come our way sometime in the future and we probably have a little more cash lying around here let me tell you i just found your investment opportunity yeah that's why i was your wife yep i would invest in the two of the biggest dates in her life her 50th and her 25th anniversary dude stop thinking that's that's right you're overthinking this you've done a really good job with money here's the thing you got to remember this charlie there's only three things you can do with money and you have to do all three you can be generous with it you can invest it and you can enjoy it and you have to do all three to have a good life most people only enjoy it they're broke some people only save it that's you so you need to also have fun and enjoy some of the money and to take fifteen thousand out of that future investment fund and do this uh if i were in your shoes if ken were in your shoes stacy and sharon would demand this our greatest investment and the roi is it's just priceless you're talking about that well i think we're deeply in debt and we're still trying to pay our way out that's what it really is yes the debt we will never pay off is that we will never convince those people to marry us we will never dig out of this hole that is true we married so far up that we're always climbing yeah he needs to gamify this dave he needs to turn this into a game where he can rework his budget the guy loves his budget he's a good dude he's disciplined rework that budget to reach these financial so you got the five and then you've got a year and a half good gracious two hundred thousand enjoying grant enjoy this so the interesting thing is what you said was very true it is relative yeah and this is a very small amount of money out of the what you have saved and out of what you make if you make twenty thousand dollars a year and you're forty thousand dollars in debt the answer is no you don't need to spend that kind of money on luxury items birthday gifts and that kind of thing but sir you have done a very good job enjoy your money that's one of the things it's good for this is the ramsey show [Music] what makes our show unique is that we genuinely care about our listeners we're intentional about choosing the best advertisers to recommend blinds.com is no exception they offer high quality window treatments at unbelievable prices and they make it simple to shop blinds shades and interior shutters with easy online ordering free shipping and a guaranteed perfect fit go to blinds.com and take advantage of this week's special savings [Music] so [Music] ken coleman ramsey personality is my co-host today in the lobby of ramsey solutions on the debt free stage armando and megan are with us hey guys how are you good how are you better than we deserve where do you all live portland oregon oh wow bit of a hall to nashville yeah so uh how much debt have you guys paid off we paid off four thousand dollars in uh six months good for you and how long i'm sorry what was your range of income during that six months uh 153 pretty steady okay what do you guys do for a living i'm in law enforcement i work in healthcare admin you're in law enforcement in portland oregon well we're relatively i'm working for you yeah that was the suburb yeah yeah we're a little ways we're like an hour oh okay in the area of portland okay i feel better for you already yeah i'm worried about you brother that's a rough call right there man oh wow fifty four thousand dollars what kind of debt it was all me um it was my student loans my car and two credit cards okay so how long y'all been married yeah uh we got married in august oh okay so first order of business clean up the mess yes yes got it okay so actually i uh so i started this journey in 20 at the end of 2015 when i was single and still had yet to meet megan i paid off uh close to sixty thousand dollars and uh i had my emergency fund all built up when i met megan she heard about dave ramsey that's for sure wow when i met her it was funny i i feel it was funny just listening to your entry music when i first met him i was like man what is this and i was listening to it here and i was like oh yeah this is the song i like it yeah you could be walking through home depot and here's jerry rafferty and it's all about dave ramsey that's wild okay so tell me the story you guys are dating how long before armando starts not being romantic and talking about money uh we i think on our third date he played your podcast on our way to dinner i was like oh this is lovely that's next level you're a real casanova dude and then um our life just kind of unfolded from there and we had to move states and he proposed to me right before cove it happened so that was fun so oh yeah our wedding planning uh was fluctuating pivot pivot exactly and then we decided actually to elope and kind of set herself up for a a better future going forward and that's fine saving all that money yeah so that's fun so okay so the third day you get the podcast oh that's just gross i'm so sorry i didn't do it but i'm so sorry uh so uh uh you know that you all laughing aside how how long in this discussion was it before megan before you start going okay this kind of comes with the package with armando i'm gonna have to work on this about the third date yeah same time yeah we had not even before dinner so even with our elopement we came home from getting married where our family lives in washington and it was we were in the door maybe an hour and he's like okay let's start clicking it in let's start making payments i was like okay well happy honeymoon wow it was great though it was i mean we paid it off in six months and it's amazing so armando had you built up some cash to throw at it i did we i had 20 000 in emergency fund and so we threw 19 at it it was just followed the baby steps exactly yeah and then i had some um in an educational ira that we moved to a 529 it was just a matter really for me was um understanding my finances and where they were at and why in the world was i having that ten thousand dollars just sit in there when i was having the debt over here it was you know a pound of feathers panned out bricks so it was just a matter of uh he had taught financial peace university too so he was a really good teacher and teaching me how all this works okay i would say thorough yeah yeah so what was the saying again i haven't heard that in years pound of what is pound a pound of feathers or a pound of bricks how do you where'd you grow up uh well northern washington right below the border oh okay yeah okay so interesting so armando i gotta ask you this so you shared with us that you before meeting your wife paid off 60. now you got 54. i love that you just emptied that emergency fund because i know that's painful yeah i mean to get that to 20 and then cut a check for 19. well he got her out of the deal well that's true but still i i really want to hear what was it like to go through it a second time what did you learn was there anything different was it easier faster and emotionally easier it was but the difference was seeing seeing the money come from the savings account and and just being emptied out it just gave me a more sense of urgency to get back there because i knew what it felt like yeah to have that yeah i'm doing some writing on millionaires right now and the old saying is the second million is easier oh and after i went broke after having a million getting the second million was easier because i knew i could do it right yeah and you knew you could do it so that's why i said that yeah you know absolutely you've already i've already killed a bear i've already killed a lion this this giant is nothing yeah you know i already that's what david said right so i know i can do this and uh yeah so you knew you could do it and it hurt but it was a short-term thing because you knew you'd be done fast yeah he had a fire underneath yeah that's for sure that's perfect you guys are amazing okay so tell people uh financial peace teacher coordinator and professional debt reducer yes 60 000 and then 54 000 both of you what are the keys that people need to know if they want to get out of debt i would say the budget i mean being single the first time it was just me you know making the decisions um being accountable to myself but when i'm when i got married with megan it was just you know communication for me um trying to explain why i'm doing what i wanted to do instead of just doing it and not not communicating it we had a lot of conversations like no no that really doesn't make sense and he's like no it does just look i'm like well how about this way and he's like no it's this way this is the way i'm like okay this is the path okay i get it very patient yeah but also resolute yes a lot for me dave was i heard this mentioned previously on your show by somebody and it was a lot of um i needed to slow down i'm such a planner i'm reading rachel's book right now and she talks about a section of like planning weekend trips out to the coast and this and that and i was a matter of like i need to stop doing that because it's not just a weekend trip it's 250 500 and we knew it was going to be temporary so now uh you know paws on life kind of a little bit but now we got to be here on a week-long vacation there you go nashville and whatever yeah yeah nicely our honeymoon i guess oh there we go yeah cause he he's got some um he's got some making up to do on that i'm just saying yeah came home and sat down at the computer and started pecking away yeah yeah yeah that's just great wow guys i'm so proud of you you're amazing what a great couple how's it feel feels great and really great just expecting expecting our first right now oh fun it's nice to know uh once she gets here that we really have financial peace it's it's great yeah you ever go back into it absolutely not never no not any reason to yeah you make really good money you got a baby on the way life is good i'm so proud of y'all what a great deal you guys are rock stars thank you you're such heroes that's so fun we've got a copy of uh legacy journey because that's uh that's what you've done you've changed your legacy and uh i want you to read through that and and we'll give you another copy of the total money makeover for you to give away thank you and uh pay it forward to somebody thank you for teaching the class we appreciate that and uh we we honored that you guys came down here and shared part of your uh part of your honeymoon with us absolutely too fun all right armando and megan from the portland oregon area 54 000 paid off in six months making a hundred and fifty three thousand count it down let's hear a debt free scream three two one we're different [Applause] that is fun wow love that that's a power couple right there yeah they were on uh they were on key as well i don't know if they planned that then the tears from megan right after that moment of the scream that's what i love about watching and hearing these screams they cross the finish line emotionally they've already done the hard work now it's the celebration good for them touchdown baby yeah so good i love it very cool this is the ramsey shop [Music] [Music] [Music] ken coleman ramsey personality host of the ken coleman show is my co-host today open phones at triple eight eight two five five two two five a bunch of you have checked taxes off the list for this year but tax season is still going if your state got an extended deadline if you want to get them done on time which of course you do you've got a couple options either online yourself or by paying a pro we've been thrilled and thousands of users have too with our ramsey smart tax online filing tool this year it is the best choice out there if you've got simpler taxes yes if you need simple if you have i said if you need simple taxes but that doesn't mean it's simple software uh our software can handle whatever you throw at it you can do all the deductions all the standards ones everything write in ramsey smart tax if you want a refund let me remind you refunds are a assigned you overpaid uh you need to get the refund but then you need to reset up everything and don't charge don't let somebody charge you some asinine processing fee like these other guys it's easy it's online it's very inexpensive and we're not going to do anything else except i'll do your taxes ramsey smart tax text tax to 33 789 tax two three three seven eight nine travis is in virginia beach hi travis how are you hello sir how are you doing better than i deserve what's up so um i was wondering i'm 20 years old currently uh baby step three i have about 40 000 across all my savings accounts and i'm just wondering on what would be a good time to move out and whether i should buy a rent um i'm currently working two jobs and uh running a business myself and just a lot going on right now trying to decide what i should do sure what do you make uh last year i netted about 45-50 right around there good for you what do you do so i sell clothing as my business and i work in a restaurant and i work in a screen printing place as well how many hours a week are you working so i work double shifts when i do work uh two times a week and then i run my business my business i'm very busy during that i ship i sell clothing so i ship you know internationally nationally going around buying stuff and selling it so yeah it's a lot going on you don't even know how many hours you work you're busting it aren't you yes sir i would agree and your question is should you move out you mean move out of your parents house somebody else's house what are we asking yes sir my parents house yeah i was asking whether i should buy a rent i have a i have a good chunk in savings as well i'd rent for a little while yep right you're 20 i agree there's a lot going to happen in the next three years in your life [Music] a lot of change is coming in the next three to five years of your life and and and uh you know one thing it's okay to buy if you want to buy but i would rent for a little while and if you buy in a year and uh then two years later you'll meet you meet the special girl you will discover you bought the wrong house hey that's that's as much truth as you'll ever hear travis i promise you right now so and then you'll have to move again so it's okay it's all right if you want to buy but here's the thing sometimes there's so much pressure in our culture to to not throw money away on rent to own that we buy at a time maybe we shouldn't renting is okay for short periods of time where there's patience involved and what your first step out of the nest can be is just something very simple and you just pay the rent if something breaks you call the landlord they have to fix it you're not in the repair business you're not in the yard cutting business you're not in any of these things you just live there and keep working and piling up money and you know in a year or two if you want to buy something you're going to have a really big pile of money by then aren't you um yeah my biggest concern was a lot i sell clothes so i store everything in my house and just uh having this having the storage like leaving at home it would be a drive just to ship stuff out and like renting i couldn't i couldn't run an apartment i'll have to run a house so so i was just you live in a house now don't you yeah it's just and inflating everything is just a big concern oh i'm not worried about inflation for two years right you're just getting started in your career i'm not even worried about inflation with a guy hustles like you hustle i worry a lot more about lazy people than i do inflation yeah oh that's very true yeah you're going to be all right man you're going to be just fine go if you want to rent a little house go rent your little house i don't care you don't have to run an apartment yeah and you know have to have three bedroom house and fill up the other two bedrooms with your inventory you're making bank on this what are you doing buying used clothes and reselling them yes sir like ebay yeah ebay different sites grilled is one yeah i talked to a guy the other day that had made thirty five thousand dollars last year doing that hold on a second buying oh you buy a pair you know buy something for a quarter at a garage sale put on ebay for three dollars thrift stores man i'm telling you travis i got some clothes i need to sell you buddy no he buys his cheap son he sells i get it dave i was sitting here you're gonna get four dollars out of this transaction all day right now i like this selling clothes yeah no selling it's good you want him to sell him for you you don't want him to buy him from him yeah i thought he buys he buys for nothing i get it i get how he's doing it he heard him say thrift stores he's going in to find a dud man you know thrift stores in wealthy areas would you run for congress and take over the world son oh please no don't dave he'll go to congress and it'll ruin him oh well no i'm speaking maybe he could ruin congress yeah i know i'm cynical i know me too the air up there in dc is different it's foul james is in sydney australia no way what's up james hello how are you thank you man i love your town we got to go there in february last year but right before covet hit and we had a blast i love sydney i'm glad you liked it um yeah how can we help yeah so um i have been saving up for 16 months till end of the last year which is about 35 000 australian dollars um and this money i've been sending them to my parents account so i'm not tempted to spend it so and i think it was a wise choice um i would have definitely spent it um and and i have been thinking of my student depth on top of this as well uh but all of a sudden i was struck with the news that all of my saving was invested on a tesla stock um by my father allegedly this will be given back in four years from him um then she predicts it will be quadrupled by [Music] okay and and and your dad just decided he was going to take your money and put it in tesla stock to help you out yeah yep okay and so he he thinks he's making money apparently so which i don't i wouldn't deny it given that if he just gets it out now he'll be about by the end of today by the end of today he needs to get it out and send it to you you're 29 freaking years old you need to be a big boy and not spend your own money and you need to be a big boy and your daddy doesn't do your investing for you i mean i didn't even ask for it so he literally he literally owes me thirty five thousand dollars sorry you already asked for it i he literally owes me 35 000 and even if i ask for it he'll be like nah he'll he you will give it back four times although if it could ripples no i want my money right now i didn't send it to you too dad i didn't send it to you to invest in tesla i need you to cash the tesla stock and i need you to send me my 35 000 right now well actually my student debt is around uh twenty nine thousand dollars okay directly it's wiser to actually just have that and i don't know maybe i'll get about six thousand dollars but um do you owe your dad on the 29 000 is your dad tied up in your student debt in any way i'm sorry no i mean student debt is my debt no so it's not any of his concern well i'm also paying that on top of it anyway i got that but you you when i told you gave you a very direct thing to do your answer was you started talking about something else [Music] no no no what i mean is i know what you mean you don't want to deal with your dad is what you mean absolutely right dude you need to throw your shoulders back get on the phone with your father this afternoon he's misbehaving he needs to cash in your freaking tesla stock and send you your money and then you as a man can make decisions about what you want to do with your money yes i would suggest you pay off your student loan debt but that's a separate equation you need to get your money back today [Music] this is james childs producer of the ramsey 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 [Music] this is the ramsay show you can be intentional about your character you can have money and a career you are the hero in your story [Music] live from the headquarters of ramsey solutions 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 number one best-selling author is my co-host today we're going to talk about your life and your money ken on the ken coleman show 75 radio stations sirius xm radio big time podcast and youtube channel talks about your job your career finding work that matters knowing what you're passionate about and that you're good at and figuring out a way to put all that together to make a really fun good life we're going to talk to you about that today as well as take your questions about your life and your money triple eight eight two five five two two five speaking of jobs ken anton is on in los angeles with a job question hi gentlemen how's it going thank you so much for taking my call sure what's up all right so i have a bit of a i guess a good problem to have with some options so just wanted to get your input and i'm so excited that camera's done today as well um so long story short i've been with my company for about four years now um last year at the end of the year i decided that this year i was going to start looking for a new job mainly due to reasons of lack of development uh it feels a little scale um anytime i would ask for a little bit more work or something to do it's just kind of like yeah well we'll see what we could do but uh management's not really interested in training or developing a career uh for anybody so i was like okay i appreciate the work i do and i'll just see what else is out there about a month and a half ago i got a new offer from another company which i accepted it came with about seventeen thousand dollars of a raise and the title raised as well so very excited um when i went to give my two weeks i spoke to my cfo at my current job and he essentially said that he would match my salary he would put me on a plan to have a promotion within 12 months and he would make sure to uh mentor me and uh help me grow so that kind of helped me make it then i decided to stay so it helped me make a decision to stay uh here's the problem nothing got put in writing so i contacted the new job and i turned down that offer nothing at my old job got put in writing so when the raises came around i only out of the 17 000 that he agreed to match only about nine came as a race and the other 8 000 came as a one-time bonus uh that got deposited into my account which is great for the cash uh but he got super taxed and you know i want to talk to him about it and he basically told me that that's the best he could do uh because if he actually put the whole 17 000 raised salary i got it i got it the guy the guy's a jerk he didn't keep his words so what's your question so my question is you know they paid me out the the one-time bonus right and i i is it okay for me to start looking for yes i feel i feel a little this is the danger in what they did to themselves yeah and it's also the day not only did they lie and not keep their word they gave you all the money up front well this was stupid yeah and anton you knew you saw you saw this you saw that there was no development they weren't serious about pouring into you that's a sign of a great culture a company that develops their existing people and promotes them if those people receive the development and do a really good job and you saw the handwriting on the wall and yet you got talked back into doing it it doesn't matter we're not i'm not trying to knock on you but i want you to learn from this so yes you start looking i'd call the other company and see if there's still an opportunity probably not but i certainly would start there and i would i would i would look and i would i would hold fast to the lesson that you've just learned yeah and your cfo's getting ready to learn a new lesson yeah he just signed he just gave you a signing bonus for the new company right right so what happens when you screw people yeah i just uh i just tell them like it's unethical for me too you know what i mean no no let me know unethical was him not you yeah he lied he lied period end of story unless you changed your story is what you told us what really happened yes sir okay then he lied right yeah yeah i think he just uh put his clothes in his mouth and then when he went to do it dude yeah that's a form of lying yeah dave i see this a lot this is this is this is poor management and it's manipulation a lot of managers and leaders i wouldn't even call them true leaders they're so weak and they manipulate people and this was a scarcity move he was like okay hey i'll tell you what if you stay i'll do this and he didn't value anton he didn't have a principal involved in the decision it was right the work wouldn't go away that's it i got to solve a problem i'm going to manipulate somebody well and he didn't have approval and so when he went back to he's a cfo he ought to get his own time i was going to say does he need approval yeah this is just bogus so we're going to figure this out all we got to figure out is anton you don't want to be there yeah and uh if you get a job really quick that eight thousand dollars that they put in your account extra is a bonus and that's what it costs them for not keeping their word no there's nothing unethical about what you're doing at all the lack of ethics was on the other side of the equation yeah and be encouraged don't get discouraged here you found something before you'll find other things and now just walk forward so don't get down on this one year from today don't be working there no yeah no out out [Laughter] so um you know how do you keep good people well number one you develop them you see people want to track to become more to move up and you give them training to move up that track oh and you keep your word yes why is this hard yeah do what you say you're gonna do yeah it's that's why there's no competition yeah because most people won't work hard and tell the truth you can beat most people by just working hard and telling the truth yeah most people can't even do that yeah and so that's why there's no real competition out there so yeah and anton hit the road you know dave there's also a leadership lesson here for people who listen to show that lead people don't make leadership so daggum complicated again same advice don't lie to people and if you just if you give them a ladder show them a ladder where they can grow with you and then develop them so they can do it as dave just said recognize them reward them and keep them in a place where they're doing really really good work and they enjoy it they will stay with you for a very very long time but don't over complicate this don't try to manipulate people by the way dave we know this from data people don't leave companies they leave leaders they leave their manager that's exactly right they get tired of that guy that gal yeah and the being jerked around being kept in the dark not being told what's going on not being given anything to do that that you can actually measure the traction on uh this is just not that hard no entree leadership we teach this stuff all the time yeah go dive into that yeah it's it's the whole thing there ken coleman is my co-host today this is common sense for your life common sense for your dollars and cents it's the ramsey show [Applause] [Music] life is full of firsts [Music] as the first and longest serving christian health cost sharing ministry chm has shared medical expenses for its members since 1981. we believe you should have the freedom to focus on your health while being supported by a community of believers giving you the opportunity to create many more firsts [Music] [Music] if you're in debt it can feel like you're constantly at war with all those freaking bills and sometimes feels like the bills are winning you might wonder if you're ever going to get a head well listen does not have to be like this you can pay off all the debt and when you do you'll finally move forward you'll build the kind of life you want with your money and we'll show you how we'll show you in ramsey plus with this membership you'll learn how to take control of your money and ditch your debt for good plus you get all the tools you need to make it happen you can get ahead ramsey plus includes financial peace university every dollar premium which ties to your bank community coaching all kinds of things there to walk with you help you make sure you do the stuff you hear us talk about here every day on the air text the word trial to 33 789 for a free trial of ramsey plus it's a free trial of ramsey plus text trial two three three seven eight nine jay is with us in tampa hi jay welcome to the ramsay show hey dave hey ken i hope you're both having a great day thank you so much for taking my call our pleasure how can we help so my question for you guys is sort of a two-parter first i have an an old employer sponsored ira that was transferred to a trust company i'd like to move that money but i don't know if i should move it to my new employer's sponsored 403b or if i should open a roth ira because i don't have one yet move the money there and um kind of see you know kind of take any penalties or anything that may come along with that there's no penalties and i would roll it to a traditional ira not a roth in good mutual funds how much money is in the account uh it's not a lot it's like 1500. okay just click smart vester at daveramseyra ramseysolutions.com and find a smartvestor pro in your area they can help you with the paperwork and opening up an ira and you just roll it to that someday later when you're out of debt and you have some extra money then you would just use that to convert it from a traditional to a roth because that makes the taxes come due there is no penalties on what we're talking about but here folks when you leave your job you always take your retirement with you if you can if you've got a 401k you can't if you got a employee sponsored thing with lump sum you can't and you always roll it to a traditional ira where there's no taxes in good mutual funds that way you have better investment options and you have more control always take your retirement with you and never put it there's no reason to put it into the new employer none whatsoever michael is in alaska hey michael welcome to the ramsay show thank you it's pleasure to be talking to you you too what's up hey so i just got a quick question i got a little bit of consumer debt and i own a home so i got a little bit of equity um what are your thoughts on possibly taking out a heloc or equity loan to pay off that consumer debt bring down the apr and stuff like that and then just throw that equity loan into my uh debt snowball i wouldn't okay you want to know why why because you're going to feel like you did something and you didn't do anything all you did was remove it now listen all you did was move it interest rate's not your problem lack of a budget lack of focus lack of attacking this is your problem you get fired up and pissed off about being in debt okay and get after your debt list it smallest to largest pay minimum payments on everything but the little one and get after it because here the problem when people move debt around they use words like pay it off you didn't pay it off you moved it and two percent savings on the interest rate is not your issue your issue is getting focused getting on a budget living on beans and rice selling so much stuff the kids think they're next get fired up and wired up baby that's what does it that's what moves the needle can we there's so much of what you teach about jobs and what we teach here that is about action it's um motive which leads to motivation yes personal finance is 80 behavior it's only 20 head knowledge there's so much about a job or choosing a career stepping into something that is about um you know don't try to trick it to don't try to trick your way past the hard work there's no shortcut to any place that's worth going beverly seals used to say he's absolutely right and so why are you going after it you've got to remind yourself on the journey why am i doing this i get that it takes time you know if you walked out on the street today with a camera and a microphone and you asked people are you willing to do whatever it takes to get where you want to go whether it be career in your money most people look at you and instantly say absolutely but if i followed up and i said well but i think they mean that but then here's the follow-up question if i said are you willing to wait as long as it takes oh that's exactly what happens they literally can respond that way here's why there's something about the human condition we want everything now that's what this journey is all about it's what dave talks about all the time it is it is the budget helps you control the behavior issued where you go hey this is a long slog it's going to take time and so you have to whether it's in your career and doing work that you deeply want to do because you know you were put on this planet to do it uh or it's paying off debt uh and saving money so that you can live like no one else all of this is the same exact conversation you want to live like no one else you want to work like no one else it's going to take time and you better have the big picture in mind and know that this is a climb but it is going to be worth it when i get there there's no shortcut there is not a shortcut a generation ago there was one of the world's best golfers was a guy named gary player yes and the story's been told about him over and over and over again through the years that he was warming up at a tournament on the driving range and he's you know pulling back that driver and sailing that ball out there 300 360 350 yards whatever just popping that drive straight as a string and this guy walks up behind me goes i would give anything to get a golf ball like that mhm and i think i think he caught him at the wrong moment because he turned around and said no you wouldn't yeah it's a fantastic story no you wouldn't yeah you would not stand out here in the heat and hit 2 000 golf balls hit golf balls so long that you get blisters hit golf balls so long that the blisters bus hit but golf ball so long that you can't hold the golf club anymore from the busted blisters you tape up your hands and you hit another thousand balls you wouldn't do that yeah that's right you wouldn't do anything to hit a golf ball like that to which the poor guy just said i'm sorry i asked him but you know but just you know but yeah that's the thing you know i i would do no you wouldn't you got you got to be willing to do it and and so that's the thing and i'm not picking on michael here that's not the issue but the issue is there's a thing about uh action and paying the price live like no one else so that later you can live like no one else that supersedes a little bit of interest saved by moving it to a healer so true 88 of the people that move their debt over for debt consolidation go further into that don't get out of that yeah nine out of ten times yeah it's interesting they don't change their habits and put them in there in the first place that's right they feel like they did something and that's dangerous to feel like you did something when you did nothing yeah you know there's a theme here we're talking about folks that dave just brought up you got to be passionate about getting out of debt that gazelle intensity where does that come from about the next job you got to be passionate about doing work that you were created to do to help people so what's funny is you do a word exercise and there's a german word and there's also a greek word the root word of passion means to suffer now here's the deal when it's rice and beans beans and rice gazelle intensity working three or four jobs the last couple times i've been on the show we've had single moms back-to-back shows who paid off an enormous amount of debt with multiple kids doing everything that is suffering to suffer that means these people know what the word passion folks we gotta get this isn't like some romantic motivational poster word this is i am willing to suffer to go through pain and withhold pleasure that's what that means in order to get an outcome that i desire greatly whether it's starting a business inventing a product or service getting out of debt losing weight changing your relationships your marriage i'm going to tell you something passion you got to be willing to suffer for that outcome there you go this is the ramsey show [Applause] [Music] [Applause] [Music] [Music] [Applause] so [Music] in the lobby of ramsey solutions on the debt-free stage sam and natalie are with us hey guys how are you we're good how are you very good where do you guys live we live in minnesota oh wow what part just south of minneapolis okay fun good to have you guys welcome and how much debt have you paid off dave we uh paid off 320k 320k and how long did this take 58 months okay cool good for you and your range of income during that time we went from about 115 last year we did 205 and we'll probably hit two and a quarter this year good for you what do you guys do for a living i'm an operations manager and and i'm a stay-at-home mom to these four amazing kids that we have here with us i love it so i'm guessing with 58 months and 320 000 did you guys pay off your house we sure did [Applause] i love it good for you guys and it took you five years huh yeah wow amazing how old are you two i'm 39 i'm 36. all right and what's this house worth uh this crazy market they got it about 475 [Laughter] and it's all yours yeah that's how does it feel to not have a payment in a stinking world man that's amazing it's it's still sinking in to be honest their heads around it yep pretty amazing well tell me the story what in the world happened here well um i've always been kind of money driven you know kind of money focused but i was out in denver um and i was buzzing around the am radio and i heard the southern guy come on the radio and he was talking all about money and talking interviewing people about money and it was i was glued i was hooked and anyway i just turned it off i parked the car and that was it and uh i was out there again another trip a couple months later and i i found you again on the radio and i was leaving denver and before i did that i i pulled over and i was like this guy's got to have a podcast or something so sure enough i found your podcast downloaded it and then i binged it from denver to minneapolis no stopping oh you drove oh my gosh all the way home the whole way the whole way and i i was just just hooked and uh so you know i got home and i said nat i'm like hey we we've been doing this doing that i'm like we got a new goal you know we got a new plan here and um we talked you know we talked budget and that was was uh not the easiest thing to to introduce but um she she was i was up to my eyeballs and babies and toddlers i was not sure i wanted to take on a whole nother challenge he was doing such a good job with my finances i was like just let's just keep doing what we're doing yeah but he wasn't gonna let it go i just wanted to step it up a little bit and um anyway um ken coleman there he was the emcee of the of the uh rachel cruz les bless parrot uh marriage and money event that you guys did in minneapolis a few years ago natalie and i went to that and uh natalie really connected with with rachel's message about permission to spend um we've always we've lived a really frugal life you know like we've always had hand-me-down clothes and we've shopped at goodwill thrift stores stuff like that we've always been pretty tight but um when she was talking about permission to spend and putting that in the budget i couldn't really wrap my head around that and then as she talked it through i was like okay this is gonna make life easier um and so i was like let's let's try it let's go ahead and try it because i won't i won't you know stop when i see something like when our kids need clothes i won't be like oh i don't know i don't know if i want to spend that but the permission to spend is a big big yeah it is that's really what the budget is it's because you decided together that this meets our goals and we have this much allocated to this so you have to spend it on that because that's what's that's what it's for yeah that's awesome yeah so was that a moment where the budget thing was a little bit like i don't know and then when she gave you that psychology on that it was like oh now the budget's not this big nasty monster very interesting yeah that's awesome yeah i grew up working from a really really young age and when we had our first daughter we decided to stay i was gonna stay home and take care of the kids so not having an income going into um things together i was like i can't spend anything and i felt terrible spending money that he was bringing home so that kind of gave it a purpose that it wasn't his money it was our money together and that also really helped having that budget put there yeah wow way to go guys and your house is paid for at the end of the story touchdown yep it's all about downloading and binging a podcast pretty much and that it didn't stop there dave you know i i just submerged myself in your material from there on out and um it was uh a big motivator to uh you know stay focused and um keep uh keep the task at hand yeah well way to go you guys we're so proud of you well done who are your biggest cheerleaders oh my gosh we we have such a good network of friends at home our family um they've all just been super supportive and and have really helped us along the way yeah that's good good well well done you guys so well done proud of you now that you're done you don't have a payment in the world what are you gonna do next you know we're gonna travel a little bit more good and we're gonna be um more giving you know we're gonna we're gonna give back a little bit more i think good good that's a good answer well done good job well we got a copy of the legacy journey for you that is the definitely where you are you're going to bring the a whole new legacy into your world because of what you've done and i copy the total money makeover for you to give away pay it forward and get somebody else on this journey with you uh give them the encouragement of your story because you got quite a testimony very very well done and you brought the kiddos with you what are their names and ages let's get them up into the shot all right so we got brad he's 14. we've got maddie she's 10. and macy's nine and elita is six all right good looking guys now they've all the way from minneapolis if they've been practicing at that time a couple times yeah i think we kind of know what we're doing i think i think we'll pull it off all right good deal good deal sam and natalie bradley maddie macy and elita 320 000 paid off in 58 months making 115 to two and a quarter house and everything these are weird people count it down let's hear a debt-free scream [Applause] [Music] [Applause] i love it very well done you guys very well done that's amazing it changes everything yeah really does you look at four kids and you look at the legacy they've been handed they're not even 40 years old no and they haven't paid for 500 000 house game changer wow it changes everything i mean if you just take a house payment from 40 years old and invest a house payment from 40 to 65. that's going to be millions upon millions of dollars that one thing yeah just that one thing yeah your most powerful wealth building tool is your income yeah and when you don't give it to countrywide when you don't give it to toyota motor credit ford motor credit when you don't give it to master card who named that anyway when you don't give it to discovered bondage when you don't give it to american distress when you have your most powerful wealth building tool and you invest it from 40 to 65 it's millions of dollars everyone in america should be a millionaire instead we build tall buildings in the skyline for major corporations that are screwing you yeah it's time to stop it they stopped it they're free they broke the chains off you see superman rip the chains off oh yeah they just busted them off yeah no more kryptonite in that house no pretty cool stuff dude yeah i love it i love what she said about rachel's talk one line in there changed the entire attitude towards the discipline it wasn't holding us the budget wasn't holding us down it was freeing us up fantastic oh it's a decision it's amazing yeah i mean permission to spend yeah that's why people love rachel because she's so nice and yeah she says are way nicer than you dave i know and i'm just so you're like do a budget or you're an idiot she goes hey guys don't stop it hey guys it's permission to spin and it works it works so good stop it [Laughter] this is the ramsay show [Music] [Music] [Music] [Music] ken coleman ramsey personality is my co-host today earl is in kansas city hey earl how are you i'm doing well thank you very much my situation is very simply this i'm a minister i've been in a non-profit ministry now for eight years and for the last seven years i've been running a program uh to help men get off their feet uh if they're have mental disorders we help them get med compliant to go on with their life if they have addictions we help them get clean i teach about 20 different classes after my program which is six weeks they go on to a nine month long program to really help them get stable the reason why i'm calling is about six months ago they hired a new chief operating officer to run ministries and she's coming in and making all so many changes that i'm really sort of going to be on the sideline now and that's okay if it makes the ministry better i'm all for that 100 however a week ago i sent an email and i said hey can you tell me exactly what my job's going to be because i'm not certain in writing can you tell me what i'm going to be doing they have not responded yet and i'm just feeling you know i've ministered to over a thousand men in this time and i've built this ministry so much and now the person's coming in and i'm not mad at them i don't have sex or grapes i just i want to be used of god now i have so many talents that aren't being used right now i have thought about doing something else i just don't know what to do and still remain in god's will and still be a servant of the lord to use the gifts that i have well earl first of all let's acknowledge the fact that you may not have sour grapes you may not be mad but you're hurt and you need to acknowledge that and and that just is a painful situation while i don't know the details does it sound like you do either the fact that you emailed i think that's a great step hey what does a win look like for me that's essentially what you asked in a very uh clear email and there's been no response in over a week so that's not healthy and even in ministries there's poor leadership uh poor leadership exists everywhere because we live in a imperfect world but i want to address the big thing that you're feeling is that you don't know what to do to remain in in the call and that's just simply not true you don't know the details yet and and because you haven't even decided hey am i supposed to leave i think probably that's coming in your future i think you need to be exploring that um but you're going to continue to do the same type of work whether specifically exactly like what you've been doing don't overthink that but the fact is until you feel a release from ministry you're still supposed to be in ministry and there's so many ways that you can do that whether that be in a non-profit uh or a para church ministry like you've been in or in the church itself but i don't want you to be so discouraged that hey i've poured so much of myself into this ministry last seven eight years i don't know what i'll do next you don't know the details but you but you do know you're still going to serve people do you understand what i'm saying and you do know you're going to do something similar to what you used to do that was where you were you were you were in a zone that's exactly right yeah well i i can't i can't it may not be there but you do none of what you've done in the past is lost that's right oh no no question uh i'm not talking about the people you served i'm talking about it's not lost in the it's became experience in your brain you're better at what you do now than you were 10 years ago agreed well yes i i appreciate that i i if i go for a week without preaching or teaching i'm like i can't wait okay so earl right there right there's the answer yeah you need to be preaching and teaching don't make it any more complicated than that so now it's not what i'm doing it's where i'm going to do it hey god it feels like this door is closing so open up a door show me i mean you know this man the bible says without faith it is what impossible to please yeah so at this moment you're hurting and i understand that i would i would maybe ask for one more clarification if i get another delay of three or four days uh brother i wouldn't read into that that that is a sign and it's time to move on and i'd be looking but you know exactly what you need to be doing it's now where can i preach where can i teach where can i pour into men the least of these and that's what you've been doing so uh you're in the kansas city missouri area there's a lot of ministries whether it be again in the local church or the pear church ministry even outside of kansas city yeah this is a function of you saying god uh i understand this door is closing i'm gonna continue to do the same type of thing but now in a different place earl yes i thought you went off the air so no don't worry i thought you cut me off that's good that's fantastic that's going to work i also have i'm a gifted writer i'm a gifted musician i've got so much to offer yeah the answer is so you you need to change your narrative it's not that you don't know what you're going to what you're going to do you don't know where you're going to do it that's just part of this deal yeah good job earl yeah you got this that stinks dave because you know there's poor leadership in ministry as well it's just bad yeah because listen if they don't have a seat for him tell him because of the changes it is unkind yes to be unclear ignore the guy gently serving kind yes guy yeah and all you got to do is look at him and tell him the truth yeah that's the only kind of thing you can do whatever the truth is yes we've got a big deal we're cooking up for you over here or you're we got a big deal we're cooking you out of here whatever it is tell him yeah that's all you got to do it's you just these it's it's cowardice 100 couldn't add leadership cowardice they're going to ignore this guy's email for a week because they don't know how to tell him that maybe he's not in the big picture anymore and it kills a guy like that man when i first started leading bossing people i in the name of being nice i was i i wouldn't tell people the truth i know it's hard to imagine but i you know i would just beat around the bush or i would just delay or i'm just i don't want to say something that's gonna that's a i don't want to have a hard conversation with somebody and i thought that was being nice and i finally realized to be unkind as to be or to be unclear is to be unkind one of the greatest leadership lessons you can ever learn that little phrase right there to be unclear is to be unkind you it requires courage and strength to be kind and sit and look at someone and say you've served this place a long time a thousand men we're taking a left turn here a right turn here and we don't have a seat for you when the music stops and we want to honor you and honor the work that you've done and help you on to your next thing yeah and that that should have been the response five minutes after that email sent because this ministry that this lady's running is not that big no he's down the hall right oh she walked past him seven times oh yeah it's just cowardice just cowardice yep that's right jessica is uh questionable whether we're gonna get to you or not go real fast jessica um hi i live in tallahassee and i bought a house a couple of years ago and i'm buying it from the owner so i don't have a mortgage or anything as far as like interest involved but i need to put a roof on my house and i'm just starting on baby step one and i'm trying to find out like should i continue with my baby step one and just continue to build the it up until i have enough yeah you need a thousand dollars before you need a roof is the roof leaking okay it does i mean i have tarps on it but it's like after about three or four months and the sun bleaches the tarps out and then i have to replace them again and that's like 250 300 what's it take to put a roof on the house um i've been quoted five grand and they want to help me out because i'm a single mom um so i'm really hoping to go with that company but that quote was pre it was 2019 when i got it yeah you need to get some more quotes this house is not that big no it's not very big at all yeah what do you make honey um i usually um less than 30 28. yeah five grams a lot of money in your world yeah um are you in a good church if you're not in a good church get in one or find a local pastor and tell him your story and ask him if there's some guys in the church that can help you out yes this is an opportunity for somebody to help and you need some help right now blue tarps ain't cutting it i don't blame you i'm sorry that puts this hour of the ramsey show in the books [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 theramsi 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 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 where he talks about jobs and careers and finding work that you love finding work that matters he's my co-host today that means you could talk about your career as well as anything else you want to call in about the phone number is triple eight eight two five five two two five christina is with us in phoenix arizona hi christina how are you i'm good thank you how are you better than i deserve what's up thanks for taking my call um i was wondering about selling our home in this great market right now um so we purchased the home uh for about 160 we owe about 110 still um and it's listing for about 450. the thing is that we have significant student loans um we have about 275 worth of student loans 275 000 um for what who's the doctor or lawyer my husband is a physician's assistant and i'm a mental health therapist good okay so your household income over 200 um it should be this year um this year i really hit it hard with my own my own private practice good good and what was it last year um about 165 yeah okay and so you got a pretty good trajectory on both of your careers which is the payoff for getting good degrees but now we've got the uh the debt associated with them right yeah yeah well it sounds like you've got a choice mathematically you've got a choice live like a college student spend absolutely no money and keep your house and be debt-free in three years or sell your house my husband wants to keep it for like a rental type of no you don't need a rental you're broke you're 275 000 in debt you're not in a position to be investing in real estate well not right now i know we pay everything off i know okay okay so do you want to live there with absolutely no lifestyle work like absolute maniacs and clean up this ridiculous mess that you have in three years or less or do you want to sell the house to get out now either one is okay there's no bad answer here it's what you want to do i would love to sell i'm i'm eager to get out of debt um he likes the idea or he's playing around with the idea of selling it but um he's definitely more for the he wants it for that potential passive type of income later on no um well that's that's long-term thinking which is not bad but i don't know if he realizes what this is about to cost him he's not going out to eat for the next three years he's not going on vacation for the next three years two kiddos yeah it's hard yeah um kiddos survive without restaurants they have done it for centuries yeah they don't even care give them a bowl of of goldfish and chicken nuggets and they're thrilled so this isn't about the kids i think dave brings up a good point does he understand no how hard this is going to be to pay this off in three years i don't think he does well no i mean he's yeah he's really good with money so he's attacking no he's not he's 275 000 in debt he's not good with money i mean he attacked it really hard during this uh no interest i mean he went down from 170 to about 140 so he's he's definitely working hard at that i i just think that if you're the one that wants to pay the house off now you've got to cast a little bit more vision for him that's the one i would choose but i would sit down with stacy and go here's why i want this if we sell this now boom it's done we both make really good income we can rent in a really nice place and still be emergency fund fully funded immediately with the kind of income you guys have and we could save up and then we can get a nicer house and put a really great down payment on it i just think you got to show him the other side of this as opposed to what i think is a status symbol which is this i'd like to have passive income with this small house i would just cast different vision here have you guys really talked about your side of this thing and where it fast forwards your life so much faster have you done that i have yes i have honed in on that like this week that's why you know i've been trying to call all week no i'm saying you've talked about that and painted a clear vision for how this fast forwards everything i i believe i have yes okay so here here's what i heard i just told you to pay off a hundred thousand dollars a year and you went and bragged about him paying off 30 000 in one year well in a couple months oh a couple months he did that you said during the no interest and the no interest has been a year so that's why i'm sorry um oh yeah i mean it's probably since i guess about a year or since the beginning of the year or so the beginning of the year you've hit it hard yeah you've hit it hard okay because a hundred thousand dollars a year is eight thousand dollars a month so thirty thousand would be done in just a little over three months if he did that then he's hitting it hard i'll go with you okay but i heard it i heard a year i thought i heard a year when you said that you didn't say a year but i heard since they stopped having interest on the loans which has been a year so anyway okay so yeah and by the way he was paying off his debt not our debt so somehow i don't know where we got on that but i think the two of you need to sit down together and go all right one of these two things is going to happen we're either going to have no lifestyle and we're going to hit this hard for three years and be debt-free 300 000 in three years or we're going to sell the house rent for a little while have an emergency fund build up cash for a down payment and buy another house and we'll buy rentals later you're always going to have good incomes because you have two very good career fields if you work hard and you know continue with your craft and so on right so you know a 200 250 000 income it's not hard to save up and pay off your own home and then save up and buy your first rental within the first decade here it's very doable but but but i think you're getting the cart in front of the horse he is he's starting we're talking about rental properties while we still have a house mortgage and we still have 275 000 of student loan debt it's out of order that comes later so i i would either sell the house or hold on to it with the idea that we're probably going to sell it later and move up in-house and get that house paid off before we start adding rentals paying it off and paying off the student loan debt and then going and taking a mortgage to buy your next home is not something i would tell you to do and so he's again putting the cart before the horse with all that so i'm kicking this rental thing down the road a little bit i like rental property i want you to have some rental property but you don't broke people shouldn't buy rental property it's not a good thing makes you broker that's why i call them real estate brokers open phones at triple eight eight two five five two two five ken coleman is my co-host today this is the ramsey show [Music] hey folks i got a great option to help you pay for your education the army national guard the army national guard believes you are the next greatest generation because you have proven that even in adversity that you have what it takes to succeed that's why they offer benefits like tuition assistance career training and a paycheck to help you avoid debt no matter what your goals are the army national guard can help you get there visit nationalguard.com to find out more [Music] [Music] ken coleman ramsey personality is my co-host today open phones at 825-5225 chris is with us in fort smith arkansas hi chris how are you good thank you dave thank you ken so much so i have a new situation my grandmother just recently passed away and i am set to receive around fifty thousand dollars um due to a lack of me caring about my grades in high school i had to take out a lot of student loans and i worked really really hard graduate top of my class during college and now i have a really great job with the federal government um i currently owe 71 000 145 federal loans and then forty six thousand two hundred and sixty five dollars with uh sally may um i currently pay nine hundred dollars a month in sally may uh but fortunately my employer will pay off all of my federal loans um uh and they're currently paying 678 per month uh so my question if i say for eight more years they will pay my federal loans off completely so my question is is um you know with this inheritance money i'm planning on paying off my silent completely but then after that should i use that payment of 900 a month uh and just add that on to uh the amount that's already being paid by my employer and just knock out my federal loans uh quicker or should i use the 900 a month um and invest it uh even though that will um you know i know that we shouldn't invest until after we get out baby step two yeah and so how much is the loan that will be paid off over eight years again uh it's 71 145 okay and they're paying a hundred percent of it but over eight years yes sir yes sir okay what do you make uh forty thousand dollars a month i'm not in my bringing here i'm sorry it's a government job everybody wanted for a minute there okay all right so is this a good career path for you or is this golden handcuffs um it is uh you know it's it's um my degree is uh in an emergency management and so it's kind of in public service and that's what i wanted it to be um so i you know really it is long term um so there is there is a path here for you to make more than 40 000 then oh yes sir absolutely okay because you need to make more than 40 000. yes sir i definitely recognize that you know i need to have a bigger shovel and you know plan on doing some some side jobs as well with that all said then what i tell folks to do where you've got a uh someone else that's willing to pay off your loans and i'm not talking about government forgiveness this is an actual employer program where they're reducing and paying your debt off okay so what i would do is i want you to save your emergency once you're debt free not counting the 71 000 then i want you to save 71 000 okay and that's your next goal as if you had to pay off the debt but we're not going to pay it off we're going to put it in savings okay okay now once you've done that then you've got that and you could make that your emergency fund if you want i don't care but i need at least 71 000 in there before you move on to baby step four and here's my plan if uh you get in a situation where some bizarre thing happens and there's like an ethics situation i'll use that okay something like that where you just you cannot stay you have got to leave because they're doing illegal stuff or something like that right i mean you're you know you can see no reason to leave right now but i'm saying something happens that's bizarre and blows up this job you've got the money in the savings account to write a check and be debt-free and you're not forced to stay there with these golden handcuffs of this debt reduction pro benefit yes sir so you've got an exit strategy so in other words if you've got 71 000 in debt that they're gonna pay off and you've got the same 71 000 in a savings account that you're not going to touch for any reason so you can hit eject if you need to uh then we're going to call you debt free does that make sense yes sir it does and then let them pay it off and you're going to have the 71 000 left over if everything works out the way you think it's going to uh and then move on and start putting 15 of your income into retirement from there that's a lot and that's very unusual by the way i i bet i haven't heard of a program that does that 10 times ever in 30 years so that's a very it's an unusually good benefit um but but we can't close our eyes and act like the debt is not still there it's what we would call in finance a contingent liability it's as if you co-signed on 71 000 and you were hoping the person who was the primary signer actually paid the freaking bill but if they don't you owned a hook and that's the case here it's almost as if you're the co-signer now they're they're the primary on the bill but if they don't pay it for whatever reason you're on the hook so we're going to have that money as cover that contingent liability it's not technically a contingent liability but that's the way we'll treat it for purposes of execution on this process our question today comes from blinds.com find out for yourself why blinds.com is the number one online retailer of custom window coverings free samples free shipping and new promos all the time they are an incredible company if you want window blinds i'm getting ready to order some by the way and i have used this company a bunch of times they are incredible use the promo code ramsey to get the best possible deal today's question comes from sj in wisconsin he writes i'm a licensed architect and i've been in the industry for 10 years while i make a good living for years now i felt the pull to use my expertise as a ministry opportunity i have completed one pro bono project with a ministry partner and now we've started another pro bono project i feel god is calling me to do this full time i don't know how to help those who have no way to pay while taking care of my own family how can i blend my need to earn a living with my calling well i love this question uh and i'm not gonna i'm not gonna question someone saying well i feel god is calling me to do this full time however when you feel that pull sj that god's calling you to do this full time or maybe more i don't believe god's going to call you into something and you not be able to take care of your family so that's my uh theological system it's inconsistent with god so he's going to provide so here's what i would tell you you're not going to make this step you're not going to step out of being an architect into the great unknown and then say hey god uh fill this i think god will open up a door if you ask and scripture is very clear on that so you can look into okay what would it look like for me to do this from a ministry standpoint and i think potentially the answer is in your question if you have as an architect work with a ministry partner that's a ministry organization to uh be able to do this type of work for families then you need to fight figure out if they're willing to bring you on full time and you kind of spearhead some of these projects whether that be a habitat for humanity and that's just an example or whoever these ministries are however dave you and i have talked about this and one thing i would push back if you were on the phone with me i want to know more because ministry is not separate from your occupation genesis chapter 2 makes it very clear that we were created to work and when we work we use the talents that god gave us he's the creator and we do work good work is a ministry and it's not inseparable if you don't separate the two you need to start looking at your paying customers it's right as spiritually valuable as your non-paying customers that's right and could god be calling you to do more of this but who says he's calling you away from your architectural career you and i have a good friend who's a bone and joint doctor who's working on your foot right now that's right as we speak that's right and you're going to pay him oh yeah for that when you see him he prays for you every time he does he's a wonderful friend and a good man and but every one of the people he ministers to pays him well i don't know he may work for free sometimes i wouldn't say that i don't know i don't i don't know that but it is his profession his profession is his ministry and allows him to do more and he gets paid yes quite and there's nothing inconsistent with that no so there's the problem is you've identified the wrong things as holy uh-huh non-profit is not the only holy thing nonprofit is a an accounting entry nonprofit is an irs designation it's not in the bible nonprofit is not more holy yeah than a doc working on you and getting paid that's right praying for you for god to heal your leg and that's his expertise totally heal your leg and be careful not to feel the heart pull to do more ministry as a call or director from god to leave your income in your full-time profession he might be but don't assume that that's the case that's what i want to be careful of yeah you can do more being gentler than i would be yeah of course yeah of course everyone is yeah i don't think that's god yeah i would question it [Music] so [Music] ken coleman ramsey personality is my co-host today open phones at triple eight eight two five five two two five tyson and natalie are with us in ogden utah and it says on my screen you guys are debt free congratulations thanks dude we called to tell you thank you so much for all the good things you're doing and for helping us get here well i'm so proud of you guys well done how much have you paid off 155 000 wow how long did that take about 13 years cool and your range of income during that time uh we started about 42 000 we're at about 75 and we've gone up and down a little bit in between okay what do you guys do for a living i i manufacture nutritional products okay and i'm home with the kids and uh teach an accounting course part-time online cool so what kind of debt was the 155 000 it was a house oh talking to weird people how old are you guys i just celebrated my 43rd birthday my wife celebrated 42nd wow wow and you're 100 debt free yep wow what do you what's the house worth well now it's about well in the market we're at over here about 350. oh that's so nice so tell us your story what happened well i'm allergic to debt and we we just started paying down the house and we took your class in 2010 just for fun because that's what i like to do for fun i love accounting family finance that's what i studied so um we we took your class and we just kept paying and we just paid every month and paid extra when we could and it was just really simple nothing flashy and here we are wow good for you guys well you plowed right through in 13 years man that's perseverance yes were you systematically paying extra on it all the time or just hit or miss um we set a goal to to get certain amounts we could and we then we refinanced to a shorter term loan we kept paying the same amount that we already were doing so that helped us a lot yeah so we started on a 30-year loan when we started in 06 the interest rates were really high so they were like 6.75 so we really did pay it like a 15 for a year and a half until it went up in enough value that we were able to get rid of pmi and it was exactly what a 15 year was and then we paid it off early from there wow look at you guys very so very systematic very uh very much process i love it that's a that is a beautiful story that's a real testament to your personal discipline yeah i wanted to ask you how did you mentally handle the dips when you had you had the income changes and then you had different things that had happened i mean this is 13 years this is a long time and you just stayed with it what would you say to folks who are in that mindset of hey i want to pay the house off is it possible well when we had the increase in income we went up to as high as 89 000 and we didn't increase our living we just threw it in the roth around the house and then when we had the dip in income we went through unemployment and we went to zero we just hung on and we were prepared and we just weathered the storm and so to other people that are out there i would just say you know we're real average and anybody can do this so you just um when it gets hard you just um you dig deep and you celebrate the little successes i love that they weathered the storm dave they didn't quit yeah the storms come right yeah so all you have to do is be ready for them don't be shocked they're coming yeah that's a way to go you guys very very proud of you guys so uh you took the class for fun in 2010 and here you are in 2021 with a paid for house yeah wow so you were already on your way by then look at you this is so fun how does it feel to not have a payment in the world it's great a little strange but we we like it it's almost surreal so how many kids do you have and what are their names and ages we have four and there is jacqueline is oldest and she is 15 then wesley is our next oldest and he's 12. then we have tommy who's 11 and chloe who's 9. all right are they around or is it going to be a family affair to do your debt free scream or what three out of the four with us that's pretty good that's not bad good good well we've got a copy of the legacy journey for you uh that's for sure your next chapter in this story and an extra copy of the total money makeover for you to be able to give away to someone and start their journey so proud of you guys you're absolute heroes well done well done we appreciate you so much we appreciate you tyson and natalie ogden utah 155 000 paid off in 13 years making 42-75 count it down let's hear a debt-free scream three two one [Applause] oh man that's so fun very very well done you guys you know oftentimes when we see these things we talk about the legacy and changing your family tree and we've developed all these teaching tools for you to teach your kids how to handle money and that completes the changing of the family tree that way so right now we've got them on sale we've just dropped our prices up to 80 on our best-selling kids products so you can have fun and you can have an educational summer all at the same time the adventure pack is a family favorite that includes the new story time collection all of the juniors adventures are in one big thick book now financial peace junior the smart saver bank all for teaching kids how to have money how to do well with money and the best part is you can add an extra kid for each sibling all of this is 80 off right now got a teenager well the teen entrepreneur toolbox by anthony o'neil is the perfect safe and flexible way for them to create their own summer job turn a hobby or an idea into a real business you can learn hard work you can learn leadership you can learn responsibility you learn how to make a profit it's a good thing it's a good thing that's how this country was built so all of this eighty percent off right now kids and teens sale at the online store at ramseysolutions.com ramseysolutions.com terrell is in sacramento hi terrell how are you hello dave i'm well how about yourself great how can we help yes so um my question is i have a paid off car it's one year old and i got it appraised for just about 26 000 now that car was my only and last debt my question is should i sell the car because that's that's essentially all of my net worth but should i sell the car and the reason for my question is it has a maintenance package for five more years what's your income well full disclosure i'm a student and a veteran so i've got a little bit of disability income as well as working full-time so just about might say 50 000. okay well if you like the car you can keep it it's less than half your annual income and it's paid for so okay yeah that's fine um it's you're right it is your entire net worth and you don't want you know more than 50 of your income tied up in things with wheels and motors and you're right close to that but you're not and you know but but here's the trick going forward if you really want to become wealthy you keep the smallest possible percentage of your income tied up in things that are going down in value and so you wouldn't make this mistake again it's not such a big mistake you've got to undo it and sell it but it's a lot of car for you it's over the top really but i'd probably keep it if i'm in your shoes and thanks for your service to our country sir [Music] hmm [Music] [Music] [Music] [Music] our scripture today isaiah 26 3 you will keep in perfect peace those whose minds are steadfast because they trust in you blueholt said it is not the load that breaks you down it's the way you carry it ken coleman ramsey personality is my co-host today open phones at 825-5225 jason is with us in fort worth hi jason how are you how's it going guys better than we deserve what's up got a question for you so i kind of want to make sure i'm i'm on the right track i'm looking to buy a business or buy a portion of a business and i'm just kind of want to make sure i'm in the right stage of my life and i got things in order where i can do that okay um so how much is it going to be so i've got an agreement with the guy for 33 of the company and it'd be about 40 thousand dollars why would you buy 32 percent or 33 so i am kind of in a portion where i came in as a business developer so he wants to be part of the company and it's a side gig i have so i'm not going to be there full time but i can be there for i can have 33 company and still do my primary job no thank you i'll pass yeah absolutely hard pass you wanna know why you could yes i would you have absolutely no power you have a minority position and he can decide to make decisions tomorrow that bankrupted and you're 33 equals zero you have absolutely no say whatsoever in this you're a minority stockholder in a small business that's broke by the way because they need they need a cash influx now would it be better if i went if i could work out fifty percent fifty-one fifty-one percent yeah then you can control it i'd prefer a hundred though i mean if 40 buys 33 120 000 buys the whole stinking thing if you gain money well the part of the thing is that i've i've doubled the income of the business for about i do think he's under buying the company as well if he'll sell it for 120 000 do you have the money no i do not okay so do you have the 40 yes i do okay how much do you have to put towards this business i've got about 80. okay and what is the net profits of the business so as of right now it is a subcontractor for for construction so it kind of fluctuates but right now it's about 100 uh 200 000 profit yes profit after everyone is paid and all expenses are paid yes i'm so confused why he would sell this for a hundred and twenty thousand dollars so he doesn't want to sell he just wants to sell at 33 because and part of it is because i've i have the context i work for a general contractor so i have the context to grow the business exponentially and that that's where my 33 would come in yeah okay so what this is is a bad comp plan he wants to compensate you for all the value you've brought to the business and the way he's doing that is he's putting you in as a minority shareholder and it's a good way for you to end up with with losing money rather than making money you shouldn't have to pay for this so what he should do is agree to pay you a percentage of the profits as your comp okay pay you like a partner pay you like a partner without any stock transfer at all okay but you don't have ownership you just are paid off the bottom line like a partner that's how that's how our operating board is paid here at ramsey i've got 17 operating board members all of them are paid off the same line i'm paid off of but they don't own stock it might be for risk reasons no it's that it's because they make a whole lot of money that way and i want you to make a whole lot of money but i don't want you to put in any money and i don't want you to feel like you own something when you don't because when you own 33 of something you own nothing this is a side hustle for you how much are you making personally off of this side hustle i'm making 40 000 up the side hustle and me and my life together make about 155. yeah ask him to pay you one-fourth of the profit yep for doing the work you do because you're bringing all the growth and that's that's gonna that would be fifty thousand a year that'd be give you a ten thousand dollar a year raise and then as you bring in more and more and more he keeps paying you a fourth of the profits you're gonna make a lot of money as you make more profit yeah so but you're what you're con what he's confusing and you're confusing is a comp plan with a partnership and you do not need you don't want to pay to own a 33 interest now if he wants to give you a third of the company to say thank you for growing the business sure i'll take it but i'm not paying for it because you have zero voting rights he anything you say he can say i don't wanna do it i'm gonna do this instead and he could just change his mind or his wife could come in and decide that she wants everybody to be fired and he fires everybody i mean all kinds of crazy but hap stuff happens with people when they do not own the control of a company that they have paid to have a percentage of yeah and so it's just a problem i i would not pay for it but maybe he could just give it to you if you've grown the business that much yeah it sounds like that this guy wants him to keep making it rain and he realizes that that jason is the rainmaker well here's the challenge with that if you're the rainmaker at some point you know he's got to give you more of that or else you could go do this on your own you've got all the context this is subcontracting this is all about relationships that subcontracting and construction that's all that is listen it can be a comp plan yes without it being an ownership plan that's right because you actually see the money you you've watched me do this around here you've been around here yeah 15 years you know you've watched me there's rainmakers in this place yeah and you know what they make a lot of money right because they make us a lot of money and it's fair it's fair to uh share with them but you know how much ramsey stock they own zero zero so i don't i didn't get confused between ownership and comp and compensation does not have to be stock yeah and to your point dave they don't want ownership if they're making rain they're making it they're making it they know this is not about ownership and so i don't even know i don't know if this guy's trying to pull a deal here no he just doesn't understand i think he just get confused he thinks he's doing a nice thing yeah and it's not it's it's a 40 000 i think that's right yeah yeah yeah so ask him just give you the 33 or just say you know what i don't need 33 25 would be great just give me a fourth yeah and then let him pay you off the bottom line and then pay you 40 pay your salary too then you'll be getting some serious money going yes that'd be there you go ding ding and that's the win-win help him see that it is a win-win he may not even know how to articulate win-win which is what we suspect here so so really go back with what dave laid out here this is going to be a fabulous deal but he if he decides to spend 250 000 on a computer system or a software program or purchase a truck that's correct you got zero say in that uh-huh zero yep if you're the if you're a minority owner and you paid forty thousand dollars to sit there and get additional comp yeah you're kind of like buying con you're buying compensation is what you're trying to do and it's just not a plan it's not the way to play it out so uh we spend a lot of time on compensation programs here and those of you running businesses check out entree leadership uh we're really really good at it we have figured out people do what you pay them to do and so we try to figure out all kinds of interesting ways to pay people to remind them that what they're doing is what they get paid for and it it's motivating as crud when you get it right and it's demotivating as crud when you don't so yeah and you know we made the decision a long time ago that this is not a publicly traded company uh this is a uh an organization operated uh god owns it and the ramsay's run it and then and we're sharing yeah and we're very very generous in our comp yeah uh especially with rainmakers yeah you know why because we want them to make more rain yeah why is this a hard formula for corporate america they try to screw everybody you don't need to get screwed why why do people do this you don't need to do it so yeah it's good very good it's a good question yeah an interesting discussion thanks for giving a soapbox for us to jump up on can coleman good show today thank you sir james childs our producer kelly daniel our associate producer and phone screener great job as always i am dave ramsey your host we'll be back with you before you know it in the meantime remember there is 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 ramsey advice in their life let them know about the ramsey call of the day podcast it's a quick hit of advice about life and money in under 10 minutes check out the ramsey call of the day podcast wherever you listen to podcasts you

Channel: The Ramsey Show - Full Episodes

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Id: 51pWfzNU8fw

Length: 122min 0sec (7320 seconds)

Published: Thu Jun 10 2021