The Ramsey Show (REPLAY from October 26, 2021)

[Music] this is the ramsay show [Music] you can be intentional about your character you can have money and a career you are the hero in your story [Music] live from the headquarters of ramsey solutions broadcasting from the dollar car rental studio it's the ramsey show where america hangs out to have a conversation about your life and your money i'm ramsey personality george campbell host of the fine print and entree leadership podcast joined today by none other than dr john deloney best-selling author host of the aptly named dr john deloney show and we're excited to take your calls america it's a free call today and every day triple eight eight two five five two two five we can talk about money relationships emotional wellness mental health most of that i'm going to delegate to john no i want to watch you answer this question john you want to watch the world burn man come on that would make me happy well uh i'll answer mutual fun questions and you answer relationships and you know what that is that creates mutual fun all right i wish if there was a band he'd do the little drone we just sell out there we only had 11 listeners and we just lost half of them we just lost they're like you know we're leaving well for those that are still with us we are so glad you're here and we have a really a a lobby crowd that i think is electric today the lobby crowd is riveting i wish you could be here to see in america the building's on fire come visit us there they are if you're watching uh you can see them they're waving nicely at the cameras so we're taking your calls triple eight eight two five five two two five and we're going to kick this hour off with dave in lansing michigan dave welcome to the ramsay show i thank you i appreciate you taking my call in a nutshell my mother is 98 years old just recently her health decline is declining rapidly so we put her into assisted living which is about eight thousand dollars a month now she has approximately a hundred sixty thousand dollars cash in a bank and she has just over a million dollars of investments nothing crazy uh being it from the generation that she's at so it's just stocks and bonds now would it be better to to run out the money from the bank first or take the money from the stock market or from her investment with the fear that the stock market might crash or go down significantly that's a great question dave and it does uh bring me some joy that she has done well financially i mean usually you get these kinds of calls john and they're like we have zero dollars in the bank she's broke but she's in a good spot and so i wouldn't worry about this the stock market crashing but i would say she's 98. now is the time like you invested all this money so that later you can use this in retirement and so i don't think there's anything wrong with using that investment money if you want to start with the cash that's fine you've got a big pile of money there uh obviously leave at least an emergency fund there it sounds like in assisted living though all that's all of her expenses 8 thousand a month all in yeah yes yeah okay is that the only place in town or is that that seems uh pretty high from the ones i've looked at recently uh no uh that seems to be going rate there's a little bit less uh but uh you know i guess that's the style of living that she uh was hoping to have at this time in her life yeah she got a million dollars in the bank i mean in investments in the bank so yeah she's earned that to write out that that last time there um yeah i'm fully on board with george there man i i'm thinking if it's me i i think i would i are you is the will all done so this money that's in her savings would be dispersed on when she passes and and everyone knows where it's going okay yeah all of a sudden yes yeah i think i was an interesting thing she she's never had a financial planner you know there's somebody at the bank that said yep we'll help you along and they obviously have done well but you know they lived uh very prudent they uh didn't have boats and uh cottages so yeah that's that's that's that's the joke here internally that dave says all the time is i'm not telling anybody anything my grandmother didn't tell me right that's how they lived they had this awesome thing called common sense and another awesome thing called math that they could do and they continue to do it right you end up with a million bucks in the bank i would probably start with a cash just for ease um until you can sit on the financial planner and begin to see which one of these things you could liquidate um and in what order is there any um any of this stuff have to be withdrawn that i don't you know this is first retirement okay and you're saying there is no financial planner in the picture currently there's no advisor no i would i would work with one to make sure that we make the best use of this money for the remainder of her life i mean right now you'd be okay with a million dollars and we're talking under 100k a year all in for her care it would take i mean she'd have to live another 10 years to get close to draining the investment account which i mean there's she could live to 108. that's that's happening i mean she sounds like a she's she's just going to keep on going man um but i would say work with a financial advisor we of course have our smartvestor pros around the country you can reach out to uh in the lansing michigan area and they can help teach you and help you understand what the best route to go is with this money to make the most of it to to get the most bang for your buck here uh but you're in a great spot there's nothing wrong with with using a big portion of that cash i would leave some of it liquid but you could use it for the first year as you try to figure out the next steps and what the financial advisor recommends and they may have a different answer than we do john but you asked for our opinion and there it is all right well i appreciate your help guys hey man enjoy your day just just for the record your mom's lucky to have you man it's awesome that you are are able to and willing to sit and walk through her uh these decisions with her in the last few years of her life um too many folks that i run into and that i talk to have nobody and so good for you brother that's awesome yeah well i appreciate that appreciate it during my faith in humanity man love to hear it that's encouraging john i feel like there's a crisis going on where you see a lot of parents they sacrifice for their kids and now here they are and the kids are having to take care of the parents and this is a very different situation that dave is in where he's just helping mom navigate what to do with this pile of money yeah that's a stress much less stressful place to be yeah and let that be the um let that be the light on the hill for everybody have a million dollars in investments and 150 000 in cash so that when your time comes which it will your kids are wondering what's the best most strategic way we can do this not how are we going to do this that's a very different conversation totally different conversation i love it no stress there well john uh before we head to this break you are uh you're crushing the dr john deloney show i've been tuning in and the way you've been handling these calls especially in some of the people's darkest moments it is it's inspiring i'm glad you're on the team for those that don't know what the show is what are you doing day in and day out that's different from the ramsay show uh we are man we are taking calls not not around money we're taking calls around um the calls we took today that we recorded today was um just found out my husband's cheating on me i don't know the next steps and just found out that my mother's gonna be passing away and how do i tell my kids and it's everything from parenting to relationships to my kid just got this mental health diagnosis at school and we love him but we're tired of all these programs so what do we do next and so it is sitting with people when they feel like the wheels are falling off and then we just walk through it man we have a lot of fun we laugh james and kelly are a lot more joyful on that show than they are on this one and man it's a great time together well i'm glad you're on the team taking those calls and it's it must be an honor to be the first person they think to calls i'm gonna call doctor john and get his thoughts on that's a pretty cool place man that's cool well we're happy to help here today give us a call triple eight eight two five five this is the ramsay show [Applause] [Music] [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 verse [Music] [Applause] [Music] [Applause] [Music] welcome back to the ramsay show i'm george campbell ramsay personality joined today by dr john dolone we're taking your calls on money on life relationships emotional wellness you name it we'll give it a shot so we are here for you america and on the line right now we've got leia in sacramento california leah welcome to the ramsay show hi thanks for taking my call absolutely how can john and i help so my husband and i have a piece of property up in northern california near tahoe we're listing the property for just over three hundred thousand um it's actually two parcels a larger one of about an acre and a smaller one about half an acre we just got an offer from um like a branch of i guess the county offering to put batteries on the smaller parcel and to lease the parcel for the next 15 or 30 years for about 30 000 a year if it's 15 years we get 450 000 over the next 15 um if not we get 900 000 over the next 30. um we'd still be able to sell the larger portion but we're kind of concerned about trying to sell the smaller portion after 15 or 30 years if we do accept that um so i just i don't really know if we should just continue to list it as one piece and try to sell it and get kind of the lump sum right now or look at this option to lease the smaller course the smaller parcel out and get the 30 000 over the next 15 or 30 years depending on the contract okay why are you concerned about your ability to sell in the future um it's i mean it's bear land um it's near tahoe um which is great but there's a river that goes through it and you can't build a certain i guess proximity to the river and then you also can't build a certain proximity to the road so it just kind of makes it a little bit more difficult i guess it's been on the market for about a year but we've had it for a few years just trying to clean up the property and clean up the the title on the property and things like that so when it comes to bear land i'm always kind of concerned about the difficulty when it comes to selling do you guys owe on this no we're we're in baby step seven we don't know on anything fantastic well that yeah that puts you in a different spot where you now have options what is your household income um we make about 150 or 150 000 years okay and other than that what are your next goals i mean do you guys want to get into real estate investing because in baby step 7 you've got lots of options there to build wealth to give to do some things are you guys wanting to be in the investment real estate business long term um yeah that's the plan i'm a licensed marriage and family therapist right now and i do a lot of crisis work on the weekends and my husband is in real estate so i'm looking to kind of leave the crisis work when my kids are a little bit older and kind of start helping my husband more on the real estate side um so that is the plan ultimately maybe in the next couple years um so he started with this piece of property and um so what i would what i would tell you is if i could if i could secure a lease for what are we talking i mean we're talking almost 9x over 30 years your return um i would sign that today and sell the bigger piece again this doesn't bear out over time but a philosophy that i live by that i was given by a guy when i was younger is i invest in dirt because they stopped making that a long time ago now you can buy stupid plots of raw land in the middle of southern utah i mean that are useless um having a half acre plot or an acre plot next to lake tahoe even with the restrictions i can't imagine you're not able to unload this even if you sell it at a reduced cost in 30 years you still have made a million dollars 10x what you were going to sell it for right okay yeah and so the beauty of your situation now is you've got an acre to sell that you can hold cash on and you've got a long-term lease on dirt that you're still going to own in the into the future so it to me it feels like it's not you can't lose either way okay yeah the way the way i'm thinking about this is based on whatever your next goal is which it sounds like you're wanting to step away from the workforce maybe uh for for what you're doing right now and to me you don't need that 300 000 today there's no fire to put out with selling it today getting 300 grand so i like the idea of locking it in for 30 years and making almost a million dollars i mean you can just invest that money if you want and that becomes a whole new nest egg for you guys in 30 years from now that's incredible so because you're on baby step 7 if you were like hey we've got a pile of debt over here we've got to clean up i might say hey let's sell that thing get rid of this debt and we can restart on real estate investing down the line but because of where you guys are at you have options and that's the beauty of baby step seven you guys have done really well thank you way to go thank you so much for the call awesome all right we're going to zach in dallas texas zach welcome to the ramsay show hey george and thank you for pronouncing my name right i actually thought you were going to misspell it yeah z-e-c-h kelly's a great help i will say that how you doing doing pretty good i'm wondering if you and dr john have some tips on how i can help kind of coach my sister-in-law through the college application process without scaring her stressing her out with all the things that go with it what what has put you in this coach role are you just wanting to help her she asks for it part of the question if you have a tip on this i want to ask her if she will help me with it and talk to her mom about it as well but it's also because like i'm pretty much the only ramsay follower in the family and i know like i've watched broad future i watched your fine print episode on the student loan crap and i don't want to see her go through that i want to see her succeed on what she wants to do because she's a very talented girl she wants to go into performing arts and stuff and she's filling out some process some applications and stuff but i'm trying to figure out how to like talk to her about some of this stuff like the dangers of loans and stuff and how to avoid those yeah go through the process but so here's part of the reason i'm asking for help i'm i'm a little too practical and i don't know how to just if i go into this blind i'm gonna say something that's gonna scare her out of listening yes so here's an important thing i want you to hang on to and i want you to wrap your heart up in this okay you cannot make her do anything you cannot coach somebody that doesn't want to be coached you can only reach out and say i would love to help if you're willing to accept it or i'd love to go to take you to coffee and talk to you about the student loan i've talked about how to apply to colleges but you're inserting yourself into a process you haven't been asked to enter and that usually ends up in messed up relationships and so you're asking for an invitation to a party you weren't invited to and i think your heart is good and i'm glad you're asking for that invitation i say go for it but don't approach it with hey y'all aren't that smart and i just watched a documentary and i'm going to teach you all about that i've had my friends who are vegans do that to me i've had my friends who are filling the blank they watch a documentary and they call and uh hey we need to go talk about this and it usually ends up in oh my gosh so it's best to say hey i would love to reach out to you and i'd love to uh if you'd be interested in this conversation what we're going to do is hang on the line here we're going to send you a copy of anthony o'neil's debt free degree that i'm going to send it to you for free and you can give that to her and you can say hey i got a gift for you i would love to sit down and talk to you about how to apply for college how student loans work and see if we can come up with a solution there i want you to not just have a lot of info about how much student loans suck i want you to have some info on how to actually apply for college how to get scholarships how to take two years of free community college if that works in your state and then how do you transfer that on and on and on and on go with some information and some data and not just a fired up spirit yeah and i think even getting her to maybe watch the bard future documentary with you hey friday night hey you want to hang out let's catch up i've got this great documentary if you want to watch it with me that could open up the conversation to where maybe she's starting to ask some questions and that's when you can step in but the the phrasing of it it felt like hey she needs some coaching it's like john's coming into me and saying george i'm going to be a personal trainer and i was like john i didn't know i was overweight need to get fit well this now it's a personal attack well i mean let's let's be honest who are you going to trust america when it comes to fitness me or john but hey that's actually a great a great a great thought is when you walk up to someone you look at them and you're like you need to get in the gym i got a workout praying for you i mean no one's gonna listen to you after that i'm immediately upset that's right if you knock on somebody's door and say hey i just have my life changed and i'd love to share it with you are you interested then you might get an audience that's a different spirit but i love the heart behind it zach we're rooting for you as you coach her through this college process to get her to avoid student loan debt this is the ramsay show [Music] if you're ready to get out there and find a job you love then you need to hear this job hunting can be stressful and time consuming but my friends at ziprecruiter have made the whole job search way easier ziprecruiter is rated the number one job site in the us by g2 and it's free so how does it work first go to ziprecruiter.com ken then create a free profile and let their technology do the hard work by finding and sending you jobs that are a great fit and get this zip recruiter pitches your profile to companies whose jobs match your skills and experience if someone from that company likes your profile they can personally invite you to apply for the job so if you're ready for an easier job search check out ziprecruiter sign up for free right now at ziprecruiter.com ken that's ziprecruiter.com ken sign up today absolutely free and let zip recruiter work for you [Music] if you aren't strapped with student loan payments odds are you know someone who is millions of people are putting their lives on hold they can't buy a house or have kids because they're stuck or even worse they're waiting and waiting and waiting for the government to save them with student loan forgiveness what a joke our team has produced a brand new documentary feature film called borrowed future and it is out now it uncovers the dark side of the student loan industry and exposes how the system is built to work against you you'll see dave ramsey and dr john deloney weigh in on the epic failure otherwise known as the student loan program along with featured interviews from other industry insiders and thought leaders like seth godin and seth fratman we're coming at this issue hard people we're taking big swings at the student loan problem with the goal to arm parents and students across the country with the truth that you do not have to take out loans to get a college education you can graduate debt free and avoid the predatory student loan industry borrowed future is available to watch now and you can find it on apple tv amazon prime video google play or at borrowed future dot com dude i'm excited about this man so pumped the feedback has been yeah it's burning through man incredible we are giving this away to teachers i want to let america know that i didn't know that if you are a teacher or if you are a youth pastor you've got you are leading teens in your life we want to show this uh for free so you can access this go to bardfuture.com you can scroll down and click on the link if you are a teacher or in that in that realm where you are trying to influence the next generation which is a difficult task and so to have an 88-minute documentary you can push play on that says it for you yeah that is a game changer so i'm real excited and you did a great job in this john really unpacking what you've seen because you've been in the education world for a long long time and i love it you you loved it so much you left well i mean i i do i believe in it and i love it um and i think it's important for our country i think it's important for individuals and there's got to be another way got to be another way man yeah it's not the only path we got to reimagine doing different student loans aren't the only path college isn't the only path and we are we're very pro-education yeah we always have to caveat we love education but you got to do it the right way and you don't want to leave college with a hundred thousand fifty thousand dollars in student loan debt wondering wait i thought this was supposed to set me up for adulthood no i was there man we had six figures and i remember pacing my house at night my wife was asleep wondering what we're gonna do and i was still in school so they were i mean it was like the meter was still running you know what i mean and i didn't i mean i that's one of the most desperate feelings of my life not having enough money to pay my bills the meter's running i'm just racking them up because i'm halfway through a program and i don't know how we're gonna do this like i just don't know how we're gonna figure it out and so yeah it's there's i i love it i'm all in on college and universities and we gotta do it a different way yep it's hard man check it out borrowed future.com or apple tv amazon prime video and google play all right open phone lines this hour the number to call is triple eight eight two five five two two five bob joins us in new brunswick new jersey bob welcome to the ramsay show hey thanks for having me guys i appreciate it absolutely thank you well um i turned 62 years old this year and that means that i could potentially well i will have access to my self-employment pension so you talk about education i am an educator i teach boating education as in uh drive a boat on the water very cool and um how long have you done that for bob i've been doing it for a good part of 12 13 years now very cool man prior to that i was self-employed as a mobile disc jockey weddings banquet parties all that good stuff and prior to that worked out a pharmaceutical company realized that i didn't really want to work in corporate america but anyway well the first time i took my boat out i recognized in short order i probably should have had some classes on how to even do what i'm doing he needed you bob where were you bob i'm glad there are people like you out in the world keeping the water safe from people like me so what's up man i i do i do my best at it i really do and and and and on top of that i really really enjoy what i do so i'm really blessed and uh so so the challenges that i have noticed i didn't say problems the challenges that i have are all first world challenges um i do have debt and i have money to pay it off i'm just looking for some common sense uh advice here on how to go about doing that now again emergency fund you know taking care of uh you know plenty of money in the set between you know between uh my wife's 403 b and my set where we have plenty uh plenty that you know to cover these uh debts however um you know i just want to throw these things at you we have a mortgage we put solar on top of our house so and i purchased that as opposed to leasing it do you have a car loan and uh and my son has a loan that uh i want to get some advice on uh that he's working towards becoming a commercial pilot so um you know the loan rates could be a little better and i think with my credit rating i might be able to do well too so talk to me on what would be the best uh best way you know to pay these off so bob you said you have a car loan for your own personal debt you've got the mortgage your personal mortgage and a car loan that's it for you uh the solar loan as well oh i thought you said you purchased it outright oh you took a loan out yes okay okay well again purchase as opposed to leafs oh okay all right so you've got the solder like the solar renewable energy credits in new jersey they're very uh forward-thinking and uh for each uh s-rack i'm i'm getting 220 put right into my bank account so okay all right so here's what we teach is the baby steps of course the debt snowball and you said you already have an emergency fund and you have the cash to pay for it is this cash in the retirement accounts or is it liquid innocent yes it is you don't have the money in a savings account in cash to pay for it you would have to dip into those retirement funds at this point that is correct okay what's the car loan how much on that uh it's 23 000. and what about the solar solar is 43 000. that's going to take a while to to roi on even at 200 well because i have an electric vehicle um that actually has taken it down to uh according to my calculations if i included that without the electric vehicle charging uh my my payback is 7.67 years is that what the sales person told you or is that with the no no no when you include the gas tank i did take the 30 federal tax credit okay all right so the car loan is gonna go first bob so that's what we have to tackle first i don't know what the car is worth uh is it worth more than 23 yeah it's a it's yeah it's a uh it's a 2020 tesla okay oh yeah so it's it's roughly worth uh i paid i paid 50 000 for it so i'm gonna say it's probably 45 000 now okay well if you want to do it the ramsey way you're going to have to line these up from smallest to largest if i'm you i'm right now bob truthfully i'm probably selling the tesla well uh household income is it varies because of because of my business but it's uh generally between 150 and 200. okay so i i mean you can hang on to the car there you got 20 left on it 23 23. so we got about 66 total in debt that is non-mortgage bob from what i'm hearing and with your income could you not pay this off in the next eight months yeah you should be done in less than a year pay that off the car pay off everything and do it with your income that makes the most sense that's you know i could i could definitely do that so i would love to see you and your wife just buckle down for 10 months and pay off the solar and pay off your car and then knock out this mortgage how much you get left under mortgage uh it's uh 60k oh bob what do you mean bob you could be done with this whole thing in a year done max two years then you're what 64. and then you're doing some assaults out in the street with no shirt on because you don't want anybody any money and then you could be like you know what no i don't work on wednesdays just because i don't want to how much you have in retirement accounts uh well that's like i said that i we have first world problems two and a half million dollars oh my gosh bob i'm get i retract this entire phone call yeah let's go back to square one bob in fact this is normally a free call yeah no you're killing it dude you're crushing it i wouldn't touch the retirement bob you can cashflow this whole thing and let that retirement grow and not unplug it quite yet absolutely yeah pay the stuff off before the year is over and stop watching bob stop touching debt get away from it no more debt no more loans no more anything you can do this man you got this you're a baby steps millionaire we just gotta follow the plan to a t to do it the right way this is the ramsay show [Music] [Music] [Music] i'm george campbell ramsey personality host of the fine print and entree leadership podcast my co-host today dr john dolone best-selling author of redefining anxiety and host of the dr john dolone show we're taking your calls on pretty much everything money life relationships mental health give us a call triple 825-5225 the number marie joins us in cincinnati ohio marie welcome to the ramsay show thank you so much absolutely how can john and i help well um i purchased the house six years ago for 27 000 i worked on it which i've always loved to do and i recently sold it for uh well actually filled it for 237 and then after commission and tithe and giving to my church um i have a hundred and eighty eight thousand way to go congratulations marie how did you do that how many how much did you put into it in repairs well i did a lot of the work um well sadly i my husband passed away january 31st so we were doing it together um he's with the lord jesus it isn't easy but it is it is um hope that you know we will see each other so we did it together and then um he got sick and then i just i've always known how to have tool time and i've always known how to do things um so we bought it for 27 000 when the market was not so hot um and we we put in like the things that we couldn't repair like the roof and the electric and the plumbing we put in about thirty thousand um and so that's how we did it wow wow number one so we're so sorry for your loss sounds like your husband was an incredible guy huh he he really was it it's um it was difficult really really difficult um but you know it's it would be harder without jesus so um you know it's it's been hard it's easier now but i mean it's only been since january oh yeah and it's okay for it to stay hard for a long long time yeah we're together for a while and he sounds like he was a great guy and man i'm so sorry for your loss and on the other side congratulations for seeing this project through and finishing it and wow 188 000 cleared wow so what's your whole financial picture marie are you okay financially obviously you've got a big pile of money here do you have a primary residence that you're currently living in well i'm actually when i sold my house like two weeks ago uh so let's say two and a half weeks ago i moved in with my sister who's down the street we're super close it's just uh she and i together and um so my expenses went from you know no um homeowners insurance or any of those things to my monthly expenses or like 300 i don't have a car payment i don't have credit card debt i don't have a school loan i just have my monthly expenses i can live on nothing because that's just the way we were raised my parents my parents were immigrants from santiago chile and they taught us how to live with little and make money in this beautiful america so we did what a legacy it's awesome that's awesome so now you're sitting here you've got no debt and you've got a pile of cash and you're not looking to buy a house anytime soon because you're living with your sister and you've got a great situation there right because the long-term goal is to my i'm gonna help my sister get her house ready and then we're gonna sell her house and then we want to buy land but it's just the mar i just don't know what to do with the money now because i'm not going to be doing that for another year and a half okay i don't want it sitting in the bank doing nothing sure so it's still a pretty short time horizon if you're talking about a year you know 18 months from now so i wouldn't go you know throwing it into the stock market because of the volatility from you know from now to 18 months from now you could lose money so i get that you don't you don't want to putting in a bank and it's not going to grow by much you know in a money market account or a good high yield savings account you're probably looking at about a half a percent and so it's not super exciting to see that money grow at such a slow pace but right now what i want to do is protect this money more than i do more than i want to see it grow astronomically because of the short time horizon now if you said hey five years from now i want to do this i would say all right let's put in some good mutual funds and watch this thing grow for five years so a high yield savings account would be your best bet right now for that 188 000 as you figure out what those next steps are uh and make sure you have an emergency fund in place do you currently have three to six months of expenses i know you don't have a lot of expenses i don't i just have that's all i have is 188 000 to your name okay so i'm gonna take six months of expenses which for you that might be really low um but you can park that in a savings account and don't touch that that's just for emergency situations that are unexpected urgent and necessary so maybe fifteen twenty thousand dollars you put in a savings account yeah or in a checking account when you're when your transmission falls out of your car it will be annoying not catastrophic no stress got it got it do you have anything in retirement do you have a nest egg that you've been growing i don't i um i never worked corporate i raised my sons you know as a stay-at-home mom and then when my sons became men and they didn't need me which was great um i kind of went back to my love which is i i'm an artist i just take vintage things take them apart and put them back together as julie and things like that so my income has never been good and so i've never had a retirement did your husband leave you with any retirement from his his professional career nothing okay no and how old are you i'm 54. okay that actually changes the conversation yeah the big question mark for me is how are you going to live in retirement i mean if you burned through this 188 in cash and you bought some land you'd have zero dollars to your name um and nothing in retirement to even pay for those expenses so that's my bigger worry right now is that you may need to get get a job to bring in some income to start to build a nest egg for the next you know decade and park that money aside and maybe we don't start doing investment property until we know we're in a good place for retirement do you have any sort of health insurance life insurance anything like that no yeah you may want to consider not may i strongly recommend you you sit down with a xander representative and walk through what it would look like to get some health insurance over the next five 10 15 20 years were you able to cash flow your husband's illness no you know the illness um he was a he was an amazing person but he and he did construction as his career okay but he he died um [Music] it's kind of embarrassing even though he's not here he died of alcohol abuse okay okay and um and so with that said you know he had his good days and his bad days um and so he didn't leave anything he didn't do anything as far as savings or thinking of the future that was always my job that was always like put money aside or go get the regular job or go do the shows that i would do it was never on his radar so marie here's what i want to do we're going to give you um a year's subscription to ramsey plus and i want you to sit with your sister and i want together i want you all to go through every one of these lessons together everything from a thousand dollar emergency fund paying off your debts which all have already done to baby step three and four and building an emergency fund and then talking about insurance talking about investing and it's gonna lay it all out there for you and i want you all to do this together because you're going to need somebody to walk alongside you and she's going to need someone to walk alongside her because you're going to be learning this stuff for the first time in your 50s and it's going to alter your dream i'm telling you right now it's going to alter your dream but it's gonna be right and it might be for the first time in 50 years that you sleep all night okay the first time you think about the future and your heart doesn't start racing on you okay yeah okay okay does that sound good it does it's pretty cool huh to sleep yeah yeah not worry if we get sick we're gonna be bankrupt right yeah and that's why i called because i you know this is a lot of money but it's all i have that's right so it's a lot of money and it's not a lot of money all the same time and marie one more step for you i want you to go to ramseysolutions.com click on trusted pros i want you to get in touch with one of our smart vester pros to teach you what you need to do with this money when it comes to investing i think this is now your retirement nest egg this is not land fund yeah so that's what you need to do appreciate the call we're rooting for you that puts this hour of the ramsay show in the books our thanks to james child's producer kelly daniel and austin screen of the phones back there and you america and of course dr john doloni we'll be back with you before you know it this is the ramsay show [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 [Music] this is the ramsay show [Music] you can be intentional about your character you can have money and a career you are the hero in your story [Music] live from the headquarters of ramsey solutions broadcasting from the dollar car rental studio it's the ramsey show where america hangs out to have a conversation about your life and your money and your mental health and your relationships and boundaries and all of the things that concern you and alien i'm george campbell ramsey personality joined today by the wheezing doctor john delaney concern you and ale yes i'm like a 1920s uh keeper john welcome to the 21st century i'd like to introduce you to a microphone i think we need to get back to the old times in some ways our language the kids these days my wife reminds me regularly that she believes i was born in the wrong century but i don't think i've ever said well honey what ails you today jesus oh we're having a good time give us a call triple eight eight two five five two two five john would love to take your call instead of listening to me but it is it is what it is what ails you give us a shout what else yeah we'll talk money life and uh jeff was brave enough to call in all the way from phoenix arizona jeff welcome to the ramsay show hi gentlemen how are you doing we are doing great what ails you today how can we help i'm just kind of torn in between uh buying a piece of property uh probably be a retirement property it's about sixty thousand dollars just for the dirt so i'm trying to figure out if it's really kind of the right thing to do the right decision um you know i've got a i don't have any i don't have any bills i don't have a mortgage i don't have any uh student debt you know cars are paid off house is worth about the house is worth about 5.75 i've got a rental property that i would probably sell that's worth about about 250. i've got about 425 and a 401k i've got about 35 000 liquid um you know what was the liquid amount of stuff 35 000. so you would sell your rental house to buy this dirt what's what's special about this dirt what you would you have a dream what's your dream to put a house on it build a house on it um it's in a it's kind of where we want to retire so there's not a whole lot of land left there in the uh the subdivision um so the prices are going up it's a for sale by owner so you know the property is the asking price is 60 but the prices around it for the properties are about 90 92 000 so i can you know for sale by owner i can get a pretty good deal i think gotcha so what would this house cost that you want to build on top of the dirt um it's about 225 a square foot so it would probably be around 400 000 okay and you have a paid for primary residence that's worth 575 yes but you would keep the primary residence and use this as a secondary property for yourself probably not okay because you said you were going to sell the rentals yeah the rental we would sell gotcha okay yeah i mean with that kind of money you you've got the cash either way if you sell one of these properties right yes how are you if i don't how old are you jeff i'm i'll be 62 in december yeah so what what's your timetable for building this house your dream home and and settling in uh probably two to three years okay i mean i mean yeah you're debt-free you've got a retirement um you don't have a ton of money in retirement but you've i mean you're a millionaire you've got a million bucks in assets out there and cash and if you want to sell the house right now the market's hot and hang on to that cash and buy dirt in your dream community uh i mean that's what i would do if i'm being honest with you that's what i would do and you're still working jeff yes what's your household income about 110. all right well you've done really well um aside from the the retirement account which i think like john's saying if you sold that primary residence and kind of used that as part of the nest egg and started investing some of that or just sell the rental and cash flow the the property could you do that if you just sold the rental and cash flowed the rest uh yeah we probably could i mean i like that plan because it sets you up for retirement i just don't want you to sink a whole bunch of money into this property and you've got nothing in retirement as you try to settle into retirement right right i think that the property i think my my first plan would be to um invest in this this property this dirt and you know if i needed to sell it then i could sell it and probably make some money off of it sure but you know because the the price of the the uh the dirt around it is significantly higher than what i would be offering would be buying the other property from one thing i would check on that is make sure it's been perked and all that it may be a reason why it's it's 33 less expensive than the dirt around it yeah dude i don't have any problem with that if you want to if that's where you all want to end up you've worked really hard you're a millionaire you're you're pretty close just don't leverage yourself on this decision yeah you do this thing in cash man you got this way to go all right amir joins us in toronto canada amir welcome to the ramsey show hi how are you we're doing great how can we help i'm just calling regarding a question in a way it's two-parter but i'm currently in university i'm 20 years old in my third year and over the past year and a half almost two years i've been back at home because it's called it and my classes and everything have been online but next term starting january my classes uh will be in person and all five courses that i'm planning on taking will be in person and i'm just trying to decide if it would be financially better for me to move to my the other city where my university is or to continue to stay at home what's the commute like right now uh it's it's a drive and it's about an hour and a half to two hours whoa and you're there like five days a week i don't exactly know my schedule but i think it would be somewhere around three or five days can you cash flow the campus living you won't take on any debt can you do that uh yes yes i can i have uh savings and i have the money for it it's just it's a high cost and i'm and the sort of degree or career that i'm pursuing is extremely expensive so i'm trying to save and budget as much as i can so here's what i'll tell you if you have the cash the research tells me that students who live on campus have higher academic they do better on a host of metrics now that's not universal that's just that's taking an average of the students who live on campus versus those who commute there's something about meeting classmates you all start businesses together you form relationships together you learn how to do this you learn how to talk to your boss in the future all kinds of data that suggests if you live on campus there's some some significant benefits i'll also say if you have to borrow to do that it is absolutely not worth it because there's also psychology of debt challenges and getting out and the accelerated anxiety and depression around i don't own my future a bank does right so if you can cash flow this i don't have any problem with that at all man yeah that's going to be a question man that would be a great experience for you what was your second question we're running up against somebody yeah uh it's the the second part is that if i continue to stay at home i can pay off my debt but if i move back to school that people would be on pause yeah well listen i don't want you to go into more debt we can work on the debt as soon as you graduate but it feels like moving on campus is still the best bet for you psychologically and financially right now cash flow man you got this this is the ramsay show [Applause] [Music] if you're considering a career in technology i recommend bethel tech and i'm not alone here's what brendan said before bethel tech i was driving uber within four months of graduating i got a job paying 60 000 about two years after that i got a remote job that pays me a hundred and thirty thousand dollars all thanks to what i learned at bethel tech you could be next get started today at betheltech.net and get one thousand to twenty five hundred dollars off of your tuition again it's betheltech.net ken coleman [Music] [Music] so let me ask you a question when you think of a millionaire what kind of job do you picture them having is it some kind of high-powered executive position like a vp or a ceo well here's the thing only 15 percent of millionaires actually have jobs like that the reality is that the top five careers for millionaires in america are engineer accountant teacher manager and attorney that's just one of the surprising things our team found out when we conducted the largest study of millionaires ever done they talked to thousands of millionaires about who they are and how they achieve that goal and our study also made it clear that to become a millionaire you've got to invest wisely and a big part of that is getting good investing advice you need to work with an investing pro who can walk with you and teach you about the options that are right for you our team recommends trustworthy vetted investing pros from all over the country that we call smart vester pros if you want to get in touch with one in your area just text the word invest to 33789 and start building wealth today that's invest two three three seven eight nine this is the ramsay show i'm george campbell joined today by dr john deloni and we are taking your calls triple eight eight two five five two two five is the number brian joins us in toronto brian welcome to the ramsay show hi guys thank you very much for having me absolutely we're doing great how can we help uh i'm a recent graduate i'm 22 years old and i graduated with my degree that freehand people awesome i decided to take the year off because i wanted to pursue a master's of public health next year but i wanted to be able to castle and i felt that i needed to develop my professional skills way to go i had an internship in toronto um and i've secured that internship and when i thought there at the community health center uh the first words out of my supervisor's notes were you weren't my first choice uh management made me hire you my question for you guys and it just happened like two or three days ago my question for you guys is what can i do to salvage this relationship and make it to turn this experience into a mature one that will help me realize my goal of strengthening my cv and my professional development dude this is a this is a fun situation john this is your super bowl so uh i'm just saying i may have had that happen to me a few times just saying i think i've been the second or third choice most of they ran through like 40 different personalities for they're like god just hard to loan it then that's all we got left so dude i've been there a bunch brian um a couple of things i'd recommend you do first thing is brush this off like jay-z said brush your shoulders off dude you got to move on from this okay that in some ways that was somebody trying to weaponize like radical honesty and they were trying to make a power play okay i'm not gonna give that a second thought you know why because you got the job who cares who made you higher you got it the second thing i'm gonna do is i'm going to reach out not because i'm trying to make a move or this is a good political thing no because i'm a person of dignity i'm gonna say hey i'd love to take you to coffee or can we set up some time and here's something i do with all of my bosses even at ramsey solutions i've done this i did this with all of my other bosses is i would ask how do you like to get information are you a lunch person a coffee person do you not take lunches with different people um how do you if there's a crisis how do you want me to call you if i want to be as hospitable and i want to be the employee that helps them be successful in their job and i take notes and then i say great i will go from there i've had bosses say i don't do lunches i do coffees with anybody who reports to me and i said great and i've had somebody say i like to do office in my office so if you'll go pick it up i'd love to meet with you once a month but i've had it all over the place but you go first and here's the third magic thing are you ready this is gonna be the brand new news for you so i want you to hang on to your to your seat belts on this one okay do incredible work and be fun to be around the the gold standard is do your job real well and don't be an idiot right if you do those two things and they still don't like you then your boss has a problem that you can't solve man and you're still going to leave this year or the next year or whatever this ends up turning into for you with some great experience you're going to learn how to navigate some of these wild political systems and you're gonna get some great leadership experience and you're not gonna sacrifice your soul in the process man okay can you do that will you just go work real hard and be a person of character absolutely that helps a lot uh like i said it just kind of caught me off guard the first words out of your american league but so think about it this way thank you two kids just showed up to the school yard and one of them was like hey man my name is is george and the other one just takes his shirt off and flexes real big and goes look at my muscles that's what just happened to you and dude like it's like cool muscles bro can we go play on the slides that's what happened don't give it a second thought just work really hard be a person a character and you go first with how can you serve your supervisor man good for you congratulations i love that out of a sea of analogies you chose the shirt off flexing john there's so many that may have happened to me as well well brian i i've been in your shoes too i started at ramsey solutions as an intern and while the team was very loving there were people who just went ah i don't buy it yeah this guy's not for me not my cup of tea and i had to prove them wrong not with a chip on my shoulder but just going hey i'm happy to be here i'm going to work my tail off i want to be a guy that people like to be around and here i am eight years later yeah so that's the best advice i can give is prove them wrong and don't do it in a in a revengeful way but just kind of like all right that's cool man i'm 22 i get it i'm a young buck don't have a lot of experience i'm here to get experience yeah so uh three years from now he's probably gonna be he's gonna go man that that's that's my guy right there three years from now his resume will be on your desk and then you can say wow yep good to see you yeah that's how it is man prove them wrong i love it all right nancy's in philadelphia nancy welcome to the ramsay show thank you so much i have been trying to find the answer this question hoping you guys can help me my question is around the long term care insurance portion of it from my understanding that that um world has changed quite drastically um my husband and i are in our late 50s and my husband was diagnosed with parkinson's about a year ago um we are current that's okay we're you know it's all good god was gonna bring us through all of that so i i feel very super optimistic and super hopeful um so my husband was laid off during coronavirus and for the coveted stuff he's still not got another job i was laid off for my job but i'm looking for a new job we have zero debt the only thing we have left is um our mortgage to pay off which i'm going to do with gazelle like intensity in three years get get back on um but we're about 1.5 million and my question is um worth and my question is do i need long-term health care because i'm that's what i'm looking at for him and i don't know what to do at this point have you looked into what it would cost for long-term care yes it's like fifteen thousand dollars a day if he is you know whether you know if we can't take him care of him at all anymore you're saying that it would pay out or what what does it cost you what are the premiums every year oh right okay so from what we've we've been through the um medical things we haven't been able we haven't gotten it back whether first of all if they will even cover him there is nothing that i can find long-term care that will take us at the moment um there's the hybrid plans which i know dave is like a big node for the whole term life and the hybrid plants are super expensive like it's 20 for just for me it would be 20 000 um a year and that would be for like 10 years but i'm not doing that i'd rather take that 20 000 and put it into investments and let that grow so i just didn't know for on his side what what i would do what i need to do for him yeah i'll let george answer the actual there's where to get it and what age and all that i think you're going to have some trouble getting long-term care with a with that diagnosis diagnosis would be my guess unless you found somebody and it would be incredibly expensive if you do find it yeah there's two options here you either self-insure and use your own money or you pay for this exorbitant premium and the only time that we would consider buying that hybrid policy is if you don't qualify for the traditional long-term care so while it's not ideal if it's what you can get and that makes more sense than you having to foot the bill and wipe your retirement account out i think it's worth looking into so if i'm you i'm jumping onto ramseysolutions.com click on trusted pros and talk to one of our long-term care insurance trusted pros out there in your area they can walk you through all of your options and help you make an educated decision but i'm so sorry you're walking through this that's such a tough thing dude man he is lucky to have you running point for the rest of y'all's time together good for you well nancy thanks for the call this is the ramsay show [Music] [Music] welcome back to the ramsay show i'm george campbell ramsey personality host of the fine print and entree leadership podcast both podcasts you can find on the ramsey network i'm joined today by dr john delony you can also find his show the dr john delaney show on the ramsey network and you have been cranking out some shows john i see you in the studio next door taking people's calls helping people and then we put it out there for the world to consume and hopefully they get something out of it yeah it's been wild man and what about yours your you're the fine prince crushing dude thank you it's been fun we are we're trying to uncover all of the the money traps out there and it turns out there's a lot we're like we'll have to save that one for season two we got too much on the plate to try to uncover now we just released an episode all about bankruptcy is bankruptcy a quick fix for struggling americans is there a bankruptcy tsunami on the way i talked to some experts in this field we hear some real stories of people who are on the brink it was fascinating stuff i learned so much you can go check that out on the fine print podcast feed some really good stuff there some things that are hard to hear and we try to bring some levity to it i did my best michael scott impression in the office where he declares bankruptcy that's one of my favorite tv moments of my entire life it's gold like i try to keep track of the hardest i've ever laughed and that's in the top ten wow yeah so go go listen just for that there's also a dashboard confessional reference in the podcast so i sneak a lot of things in there just to make it fun for me john but we're having i mean i'm just looking at these topics man you cover hard stuff like yeah taxed off the true cost of credit card rewards i only use them for the points george makes me feel so don't rile me up john not now bulletproof your money for the next pandemic there won't be a next pin there for sure will be sorry guys man by now pay later you know what's super cool buying a 20 t-shirt on payments john they now you can do buy now pay later i'm not joking on pizza you can put a pizza on payments well it's just like putting it on a credit card right yeah but this is worse it's because of the mentality around it of you know what why pay fifteen dollars for pizza today when i can pay four dollars for the next four months what are we doing here man wow it's crazy stuff bitcoin solves all of our problems credit scores oh so good student loans are back and bankruptcy yikes yeah man we're not even done we're not even done in fact you are on our next episode on holiday spending and if you've been seeing the headlines the supply chain is basically saying like hey you're too late for holiday shopping it's too late the pumpkins just came out and you're already too late for christmas so a lot of good stuff coming your way we're doing one on diy investing this year you get high fives yep high fives kids well i relate it to the jingle all the way with arnold schwarzenegger and sinbad fighting over the turbo man action figure on christmas eve and it's the best analogy i can think of i wish it was that fun that's how dark the holiday season has come that we're back to schwarzenegger and sinbad we're back baby 1996 jingle all the way so it's a lot of fun we're having a good time helping people understand that if you follow the trends you will fall for the traps right do it old school do a grandma's way that's what this show's all about and you can just operate outside of the system buck the trends man that's what i'm all about and i know you are too you know what i love i don't like bucking this i like sleeping at night i like that my christmas shopping is already done because they were telling us about supply chain issues a year ago and so me and my wife were like hey why don't we go ahead and take care of some of that life hack christmas a year ahead of time it's not even a life hack it's just like a math problem or a supply chain i mean yeah some of this is like oh wait what am wait a minute halloween's five day god well john people are they they can't think that far ahead because they have so much going on in their life so much anxiety so much debt payments thing to keep up with social things and they can't even think about what's going on this weekend yeah and so we've got to get people to think ahead let's be intentional man and that's what that's what we do is all about so we're happy to take your call it's a free one triple eight eight two five five and check out dr john dolone on the next episode on holiday spending you help us create some boundaries with family around the holidays super helpful stuff that is one of the biggest things to face so a lot of good stuff happening around here at ramsey solutions we're going to tom in miami florida tom welcome to the ramsay show hey guys how you doing doing great how can we help so i uh i know the father husband inside me what i want to do i just need some guidance long story short i have a uh 2021 chevy suburban that is um almost paid off i have probably about 10 grand on it i could turn around and sell it given the used car market for about 70. and given the financial situation of our family it would really help with i haven't done a very good job uh leading our family financially um we're we're getting better but um you know it would put us and that's the only debt that we have is that as the rest of the vehicle i'm i've been talking to my wife about selling it and that'll give us a fully funded emergency fund i'm severely behind on retirement to the point of i haven't started yet i'm 37 years old um and with the scope of the economy and everything and just with you know everything going on i feel like uh you know it's my duty that i gotta i gotta get this turned around somehow my wife loves the car granted i mean it's it's a beautiful vehicle but we have three kids a two-year-old a four-year-old almost six-year-old and i can imagine now i'm neurotic about it it's causing me a lot of stress that the car is going to get destroyed and the value's not going to be in it and so i'm just i don't know what to do that's my question well number one dude um i this is this is one of the this is this i've taken a few brave calls today we recorded several episodes of my show earlier today and i talked to a brave man and you two are also brave you're brave for looking at one scary place and that's the mirror and saying um i need to make some changes i got three little ones and i just i'm looking at the news and the world's changing and i gotta do i gotta do better dude i wanna high-five you i'd hug you if you were here i'm proud of you man that's a hard place to start is in the mirror so good for you number two it sounds like you've crushed a whole bunch of other debt is that right yeah we've we've done well we we actually we bought a house in 2015 and we were very fortunate to accrue a lot of equity in it um hey i want to stop you real quick you know what you're really you're really good at when things are bad you take the blame and when things go well yeah you say we or you say we just got really lucky on this one i suck but we got lucky i want you to own the good and the bad okay yeah yeah is that a fair trade yep okay so let's start owning the good stuff so you bought a house in 2015 the market appreciated you made a great purchase and then what uh we moved into a brand new home which were blast beyond belief um you know and yeah i mean we've we've done some upgrade you know we had to put a fence around it you know so the kids weren't flying the neighbors pond and you know but we we you know we depleted pretty much a lot of the equity with the down payment of the home and you know all the other stuff that we had to do to it and you cash flow yeah okay yeah so to get to your question um i don't have a love affair with cars george i know you do so maybe you're i'm just kidding you don't either me and john both drive trash cars that are worth a tenth of what that suburban so if it's me yes i'm with you i'd sell that car i would go buy a great highlander something that i could tote three kids around in that also i could grow with for the next decade and then i'm setting everybody up the other side of this conversation is less about my wife loves the car that that that's okay those disagreements happen throughout marriages all time i'm more concerned that i don't know that she's heard your heart yet does she know that you are scared um yeah of okay here's what i want you to do i i have a tendency a lot of my friends have a tendency to have these conversations and their math problems look at this we could sell this pay off this buy this and be done with this i want you to sit down when you take your wife out for a meal and i want you to look her across the table and say i'm scared about our financial situation i'm ashamed of how i've how i've led us here and i want you and me to be together in this making the next steps and i want to sell this car and it's going to bring me peace will you join me with this [Music] so [Music] the housing market is hot and your house could be worth a lot more today than it was when you bought it that means your old insurance policy might not give you enough coverage anymore and what's the point of paying for insurance that won't swing the cost to repair or rebuild your home now some policies will automatically raise your coverage to cover rising home prices or material costs but not all of them if your home's value has gone up or it's been over a year since you checked your homeowner's policy you need to talk to one of our endorsed local providers these independent agents will compare multiple policies to find the best coverage for your home in your budget that's why they are ramsay trusted because they'll put you first period text the word home to 33789 to talk with a trusted home insurance pro today that's home to three three seven eight nine i'm george campbell ramsey personality joined today by dr john delony and it's a free call triple eight eight two five five two two five celeste joins us in phoenix arizona celeste welcome to the ramsay show hi thank you so much absolutely how can john and i help so my husband and i recently crossed kind of a big financial milestone that we're excited about but also now have a whole new set of questions that we're trying to figure out in short we're trying to determine whether it might make sense to press pause on our retirement savings for one year so that we can instead front load our daughter's 529 um for college savings so you you got through baby step three this fully funded emergency fund and then you went oh gosh our daughter's about to go to school and we haven't saved should we stop investing for retirement the situ i'm sorry to enroll too the situation is a little different than that so first she's three so we have some time oh good um i thought she was like 17. yeah no and and we've we have been saving we have about 25 000 in her retirement i'm sorry in her fort 529 account um you're doing great we've yeah what makes you think you're not on track um i think when when i started doing the math and looking at calculators we got to the point that i kind of realized every dollar we put in now will be worth like two when she's in high school and we're trying to think about whether theoretically you might be looking to retire around the same time that she starts college so we're trying to figure out if front loading you know putting putting more into her 529 now so that we might not have to put as much in later would put us in a stronger position just from an expense perspective when she's in college well i'll say i don't want you to pause investing i think you guys are doing great this is not a dire situation i mean she's got 15 years before she's even going to explore these college options you already have 25 000 saved it sounds like you're gonna have well over six figures as this money grows over the next 15 years is that right we hope so um i think you know we're also concerned about these crazy inflation rates for college specifically you know it looks like it's been well over five percent over the last few years but it it it makes me feel calmer to hear you well i don't want you losing sleep at night over inflation because your daughter is going to have a great head on her shoulders and she's going to focus on what college she can afford 15 years from now and there's gonna be options out there i lived in that world i am i'll just tell you i have an eleven-year-old and a six-year-old and i'm not front loading mine um the the year over year five percent seven percent three and a half percent tuition hikes that have been going on for the last 25 or 30 years cannot continue this college will be a million dollar i mean it won't be a practical investment so i would not get over out of your skis don't overthink it can i just have you guys been doing this for a long time you all been running and running and running for a season yeah pretty hard and you know i mentioned at the beginning we have sort of a milestone that we've crossed which is we've kind of looked up and just realized we we've got almost 1.2 million in our retirement account incredible part of what's driving it too thank you yeah we we feel really good about that and honestly it just it just kind of happened without our even realizing sure well y'all are doing all the right things and can so here's what i want to shift your perspective you you know have you heard of dave talk about gazelle intensity a gazelle is running from a lion for its life and that's how he wants people to attack that he wants people to get off that system like your life depends on it you can run into some problems psychologically spiritually physically if you continue running like that for the rest of your life and you guys crossed a magic milestone and it's not magic you worked your butts off and you got here that way i want y'all to stop for a minute you're not running for your lives anymore and i want you to breathe and have peace and i want you to enjoy this little girl i want you to do your regular investing y'all are millionaires i want you to live your life debt-free and i want you to put the normal amount of money in this 529 understanding that either college is gonna be a million dollars and they're gonna have to figure something else out or the colleges are gonna have to re-regulate themselves which i think is what's gonna happen and y'all guys are doing a great job you're doing a great job and you don't have to run for your life anymore thanks for that are you still there okay there you are you're so taken aback yeah just just processing some people myself included get so obsessed with sprinting and sprinting that we are going to get to the end of our lives and have a great retirement we're going to realize we missed it and that's why dave's so intentional about baby steps four five and six which is make sure you live too right be intentional about your life but make sure you're living too y'all aren't running for your lives anymore you're just not celeste how old are you two uh 43 you're 43 and you are millionaires you are doing amazing yeah congratulations and you have a three-year-old that you already have 25 000 saved for for college we have people calling in that are way older with kids way older who are a lot less freaked out than you are so i just want to affirm that you guys are doing so so well and like john said take a breather when's the last time you guys did something fun for yourselves oh i mean we're pretty good about that good i just want to make sure because i know it can be so hard when you're just running a gun and to go no no this money could be used over here we could fund the college if we don't go on vacation this year and this is a marathon and you guys are doing great you're going to retire with multiple millions of dollars if you just keep following the baby steps like you've been doing keep investing the 15 percent build up the 529 do you guys have a paid for uh property or are you working on the mortgage after this no we we have not paid off our mortgage yet so that'll be that'll be next great so i want you to keep the other goals in mind too it's it's not all about funding college we love to say that there's a hundred percent chance you will retire there's a 50 50 chance your daughter goes to college and so we want to make sure that you're taken care of first you've got the mask on before you help your daughter out and you're already doing that you're going to pay off the mortgage uh probably the next few years at this point based on how well you guys are doing what's your household income uh about this year it'll be about 250. 250. oh my gosh i'm not worried about your daughter going to college debt-free i mean you could cash flow this at this point right just out of your budget if you needed to um so you guys are doing great and in 15 years guess what you're gonna have a paid for house if you're doing at the ramsey way and you're not going to let your daughter go to college with student loans and she's going to be raised up in that house with amazing parents who have worked so hard to leave a different legacy for her that's the plan fingers crossed no you don't need fingers crossed you're there that's what people do when they're hoping you don't need to hope let me say this in a way hopefully you can understand you're a millionaire a millionaire and on average return which we know things are like shaking a snow globe every seven years it doubles so if you're 1.2 then that's 2.4 and that's 4.8 million and that's just when your daughter decides to go to college y'all are okay you're more than okay you're kicking but at that at 4.8 in a paid for house you'll be able to cashflow college and retire and do whatever you want to congratulations you're crushing it so proud of you way to go celeste that puts this hour of the ramsey show in the books our thanks to producer james childs austin selby handling all of the phone screening today kelly daniels uh acting associate producer i guess in the back there and dr john deloney thanks for being a great co-pilot on this wild ride in you america for listening in we can't do this without you we're thankful for you checking out the show today it's free call triple eight eight two five five two two five we'll be back with you before you know it [Music] hey guys this is james senior producer for the ramsay show did you know over 18 million people listen to the ramsay show every week and a lot of those people listen on one of our 600 plus radio stations across the country to find a station near you head to thermzyshow.com [Music] this is the ramsay show [Music] you can be intentional about your character you can have money and a career you are the hero in your story [Music] live from the headquarters of ramsey solutions broadcasting from the dollar car rental studio it's the ramsey show where america hangs out to have a conversation about your life and your money and your relationships and your whatever i'm george campbell ramsey personality joined today by dr john deloney host of the dr john deloney show john how long did it take to come up with that name the doctor probably too many hours the amount of hours is embarrassing and we don't even talk about it anymore i had some cool like names for the show after old heavy metal bands that they didn't go anywhere it was a lot of discussion didn't uh didn't really go anywhere it's fine it's a solid name yeah it's good strong hey but give us a call triple eight eight two five five two two five we're talking about everything and hey we got a lobby full of smart vester pros from all over the country so good to see you wave everybody it's great to see you they're like kids in a candy shop right now wandering around here it's so great they are pumped up my kids in a cookie store because they're actually our cookies out there but it's good to see everybody that's a good thing to to note that we do have free cookies free mugs free coffees all the combinations that's right we love it just south of nashville all right open phones this hour triple eight eight two five five two two five zak kicks off this hour in huntington west virginia zach welcome to the ramsay show hello hey how can we help okay yeah so i'm calling because um right now i'm pursuing several pastorate positions and these positions they come with uh personages uh you know the house on the on the church um and i was wanting to know what you thought my wife is thinking that we should just use a housing allowance and buy a house wherever we're at but i'm not so sure about that because if i can get the personage it'll it'll come with utilities paid and i won't have to worry about any financial decisions but my wife thinks that it's it's not secure enough that it fall right out underneath of us so i was wanting to know if you thought that i should just go if we should just go for the parsonage you know of the free house with the utilities paid and you know all that the stuff that comes with it so i was just curious what you guys thought about that i i'll give you my perspective george you hop in here too um first thing is give me a picture of your of your total financial picture so well right now i'm a teacher but if i take this i will i will uh you know be a full-time pastor um i owe about 50 000 okay what kind of debt is that it's student loans from uh seminary okay um and what's this what's this pastor position going to pay you about 40 000. okay 40 000 plus a house plus a house okay with no utilities right right so they pay all your your expenses when it comes to housing yes okay so you have a picture of a house where y'all are gonna crash and your wife has a picture of a home where you don't crash it's where you live in a season when my wife and i owed six figures she's a a doctor too we have a bajillion degrees in our house too much too many degrees in our house we sold our home and we moved into a residence hall apartment at a university where i worked and we were faculty and residents and we did that for a year and i took on two extra jobs and she was a rock star professor and we paid off a whole bunch of money and we had about a year that we could do that and so if i'm you i would sit down and say i dug us into a hole 50 000 in seminary loans and this is a way to clear that up in 18 months or so and i would let her know hey our plan is to become debt free we're gonna let's live in this personage and we're gonna have no bills we have no electric no internet no nothing and we are as a family we're gonna suck this up for 18 months or 24 months max tell your bosses at the church we're going to do this and then we're going to expect the housing allowance on the back end and then you'll go buy yourselves a place but that's what i would do and that way you can sit down and say hey we can crash for a destination and in our home me and my wife and my my son we made those little chains that you make out of construction paper i mean we set it up this is short term for us we can do anything for short term and then we went and bought a house that we could become a forever house right not a forever house but a whole a home that's what we said set up a home so that's how i would approach it yeah i love that mentality what's the housing allowance if you took that um you know it varies from church to church you know uh but about like 1500 a month okay and like john said if you could pay off your debt stay at the parsonage and then could you take that housing allowance down the line if you agreed to yeah it would definitely cover you know stuff because i'm in west virginia housing prices are really low here there you go you know yeah and so yeah you one of two things is going to happen you're going to be debt free you're going to have accomplished something together you're going to have sucked it up you're going to be able to um say look at what we did or you're going to realize man living partners is kind of awesome we call somebody else when something's broken and now that we are debt-free we can just start socking away this this living money and continue saving and saving and saving at one point uh some point buy a house with cash right but but again put it put a short-term lease on this deal i shouldn't say lease i'm on the ramsey show put a short-term leash h and um then go from there and is your wife going to be working at all zach it's possible probably part time if so she's an engineer so okay that's great well i'm thinking if she can come in and help with with this shovel to get more income coming in and you guys could clean up this debt even faster and get her to that dream even faster you clean up this debt you'll get a down payment for a house get an emergency fund and get out of there man it's great good for you thanks for thanks for the call zach way to go man interesting scenario with the parson it's a fun word to say number one but very interesting scenario where they're paying for you basically you can live here rent free and you experience something like that in some of your previous uh careers where they're paying for this and so we've got to make a financial decision what does this mean for our future housing because i think what the wife is seeing is hey we don't own this we're not building towards anything with them paying for our rent well and you don't feel secure because somebody else owns your home right and we get that call from renters a lot we get that call from hey if i just sold my house and moved in with my parents me and my five kids and my wife moved in with my parents for a season right and i i've done it and for a season it was magical and i say magical it was hard but in my case we learned that we could live a lot smaller than we thought and every house we've bought since then has been actually small i mean we ended up changing our whole trajectory of our life we got rid of a bunch of stuff we live a lot lighter and so we learned a lot about ourselves and we paid off everything and um it set us up for the next several decades of my life because we we made a hard decision there in the middle it was not a two or three year decision right it was hard with a little one and two working people et cetera et cetera so it's meant to catapult you through the baby steps faster a short-term plan with an exit strategy that's when it can be applied we wrote down the plan we were very clear and then we executed that plan right brilliant that's the way to do it get rid of the step man this is the ramsay show [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 seventy dollars a month by switching to pure top just go to puretalk.com and enter the promo code ramsey to save 50 off your first month pure talk simply smarter wireless [Music] for most homeowners being financially ready to sell a house comes down to one thing equity now equity is a jargony word but all it means that your home is worth more than what you owe the bank for it and since home values have been on the rise for the last several years many folks have built up you guessed it equity how much of the home you owe you own so if you've been thinking about selling your home the first step is to figure out if equity is on your side because you want to make money on the sale of your home right if your equity looks good it might be time to go ahead and get your home on the market and that's when you need to find an experienced real estate agent to help the right real estate agent does way more than just schedule showings they know how to accurately price your home get it in front of hungry buyers and help you navigate negotiations that way you won't leave any money on the table to connect with a top performing agent check out our nationwide network of endorsed local providers or elp agents elps are the best real estate agents in your area who've earned the right to be ramsey trusted our agents are committed to excellent service and to putting your financial goals first if you want to check them out just go to ramseysolutions.com agent you can find a trusted pro in your area that's ramseysolutions.com agent i'm george campbell host of the fine print on and entre leadership podcast joined today by dr john dolone we're taking your calls triple eight eight two five five two two five lisa joins us in minneapolis lisa welcome to the ramsey show hi thanks for having me absolutely how can we help yeah so i'm calling because um i'm recently married and um also recently graduated from law school congratulations huge a lot of life changing thank you did you pass the bar yes i did yeah congrats i know they just went out all over congratulations yes they did thank you appreciate it um so i have um 60 000 of debt from law school alone yep how much from undergrad none none excellent yep my dad is a very large proponent of living debt free so my upbringing was very much those structure around the principles that um ramsay teaches so very cool fortunate in that sense um but my husband is still in grad school and he has another year and a half i'll graduate in december of 2022. um and so my question for you guys is should we focus on paying off my debt now that you know i mean granted the government isn't requiring us to pay off anything right now but i know we should be or should i be paying cash for the rest of his schooling that he has so the option is he goes into debt to continue grad school or you start paying off your loans right stop the bleeding yes okay so pay his school keep cash yeah we want to minimize the damage here going forward for your debt your debt payments so as long can you cash flow the rest of his school yes great and as soon as he's out uh does he have any debt so far like 20 000 from last trimester okay so that puts you guys at about 80 grand total in debt and that's all student loans yep okay yes let's cash flow the rest of his grad school and december 2022 he graduates january 2023 it's game on we're going gazelle intense with hopefully amazing salaries what do you think your uh combined salary will be at that point um probably over 200 it's hard to know if um he'll be a chiropractor so it's hard to know sure as he's getting minneapolis it's the most saturated market right now so if you if you're making 200 and you've got 80 dollars in debt that debt is gone in under a year yeah yeah okay get it get it get it you're gonna take cases on the side too he's gonna see people in the garage they're gonna do whatever you gotta do get that get rid of that and then you're basically a on a two and a half year plan to be completely debt free and then you're off to the races and now you're making two three hundred grand in a few years with no debt and you guys are young how old are you two twenty three and twenty four oh yeah dude congratulations this is what i like to hear way to go lisa we're so proud of you cheering you on as he finishes grad school and you guys get this debt paid off thanks for the call nick joins us in annapolis maryland nick welcome to the ramsay show thank you how can we help so i a few weeks ago managed to screw my car up pretty bad i got it mostly fixed up but sounds pretty bad so i'm not sure how long it has left in it and i was looking at the used car market and with everything so inflated it feels like it might almost be better just buy new so i was wondering uh what i should do in my situation um a couple of questions here so have you taken it to get it looked at see about fixing it yeah i got a i got it fixed up a good bit paid a good bit to do that and uh it still seems like it's probably going to be on its last legs pretty soon what makes you think that um sound steering's pretty bad uh it was already a little old and okay kind of a beater to begin with okay sometimes i have been guilty of in my own life i start finding problems with things because i want to change and especially after i get in a wreck i have this feeling the car is not any good anymore it's not safe anymore or i'm just mad at it or i just paid a big repair bill so i hate it and so that's why i'm digging in like is it are you done with the car are you sick of it are you annoyed by it does it make you mad up to me get in it because you just had to spend 5 000 bucks to fix it or is it really going to fall apart on you um to answer your other question i think it comes down to cash and what you how long you're gonna hang under a car um i'm i'm i'm in the market to buy a used car right now and i can say that out loud because my wife doesn't listen to this show and it's for her christmas present and so i'm buying it early and i'll be buying it the next couple of days and i got cash and i'm planning on buying a car that i'm going to drive that we're going to drive as a family for a long long time hopefully for a decade or so and so the the the higher price right now i it will make itself up over the next decade i'm not worried about that if you're gonna buy a car and then sell it in two years and sell it in two years and sell it two years yeah it'd be a terrible time to buy any kind of car right um what is your even though you think it's gonna be less buying a new car well i don't know i will say this i've heard some bananas deals i haven't seen the numbers that there's dealer incentives for getting rid of new cars and then you can actually walk in a dealer buy a new car for cheaper than you can buy a used car in some situations especially when it comes to trucks and things i don't know if that's true or not that's all anecdotal what i would tell you is don't do anything on any sort of payment do you have cash to go buy a car i need to i would definitely need to finance yeah absolutely not hang on to your car man so what's your what's your financial picture how much money do you have in cash in savings um so in cash in my savings i think i have about eight grand today um okay uh 8 grand in 401k as well do you have debt um only the house oh just a house okay yeah i bought a house a few months ago right before graduation so you don't have any debt except the mortgage and you've got pretty much you're basically kind of in this baby step three maybe land around there is this three to six months of expenses if you add that up yeah yeah definitely okay so until that car actually goes to put and it's not an emergency because we kind of know this thing's on its way out if i'm you i'm going to start to create a sinking fund very quickly where i go all right every month i'm going to throw a few hundred bucks at least into a separate savings account so that when this card does go i'm ready to use whatever money i have to buy whatever car i can get for that amount of money so it becomes a simple math equation instead of well i could get this 25 000 car new and it's actually a good deal because use they go for 26. that's just some backwards math there and i don't want you financing like john talked about so can you create a sinking fund right now i mean you must have a little bit of margin in your baby steps now that you don't have any debt yeah um i think i have about 2 000 a month that doesn't go into like so wiggle room you've got two grand are you investing 15 into retirement before that um right now i think it's doing five percent uh i just got the emergency fund back up so i need to start doing the 15. yeah let's get that investing up to 15. and uh do you have kids uh no i'm 22. okay so all the leftover money after that 15 that's going into a car savings fund and that's going to be my a1 is to get a car that i can afford in cash that is your next goal nick and in 10 months you got 20 000 in an account boom now you can go buy yourself a used car that's not gonna be fancy pants but it's gonna be safer than when you got don't borrow money on a depreciating asset don't be fancy pants john said it best this is the ramsay show [Music] [Music] if you're looking for ways to update your home without blowing the budget i've got it for years i've been telling you about our friends at blinds.com blinds.com makes it simple to shop top quality blinds shades and interior shutters from home with easy online ordering and free shipping with blinds.com there's no need to renovate your entire home just change out what's on your windows with upscale choices like faux wood blinds cellular and roller shades or even outdoor shades plus blinds.com guarantees the perfect fit whether you do it yourself or you have them measure and install everything for you shop their latest looks and see how much you can save at blinds.com today the easy and affordable way to make your home more beautiful is blinds.com [Music] blinds.com's 100 satisfaction guarantee means even if you mismeasure or pick the wrong color they'll remake your blinds for free you get free samples free shipping and with the new promos they run every month you'll save even more use promo code ramsey to get the best deal rules and restrictions apply today's question comes from caleb in scotland did i do that right that was a pretty rough accent but continue it wasn't great it's fine today's question comes from caleb william wallace in scotland better says my friends have gotten caught up in the bitcoin market craze and are making a lot of money trading i know your company says it's not a secure investment but i have to admit i'm intrigued by the money they're making is it a good idea to put some of my emergency fund in bitcoin and see how fast i can grow my savings george you are a bitcoin expert oh my gosh john okay so we did an episode on on the fine print all about bitcoin we called it is bitcoin your ticket to wealth could bitcoin be your ticket 12. and what made me laugh at the end there was to see how fast i can grow my savings and in my head i thought you mean to see how fast you can lose your savings that's that's the question i want you to ask it's a risk problem john i know you're you're big on this risk analysis and what we found with bitcoin is that we're not against bitcoin i'm not mad at you if you want to put some money in bitcoin but this is not your 15 retirement we're not banking on this money to live off of now if you want to do some fun money if you're debt-free you're already investing you've got your life taken care of you want to put some fun money into bitcoin that's fine have some fun with it but treat it like entertainment because right now that's what it is and so no it's not a good idea to put your emergency fund in bitcoin because guess what when there's an emergency you're gonna need that money and it needs to be liquid you need to be able to pull that out of the account and know it's going to be there and with the drop of a dime or elon musk saying something on saturday night live your emergency fund could vanish evaporates that frightens me so don't do that man put it put your emergency fund in a money market account and a high yield savings account and keep it there part for safety this is not where you want to play with investing and for those of you who want to use bitcoin as a hedge the dollar's all going down so we're gonna have please don't please please do just a rudimentary risk assessment on how how currency works don't do that don't do that love yourself more than that right that's all i'm going to say that's it that's it caleb thanks for the question all the way across many ponds to scotland yeah that's fun and we either i wish you would have called in and i could have heard that amazing scottish accent all right open phones this hour triple eight eight two five five two two five allen is in houston texas home of the john d'alone welcome to the ramsay show allen hello gentlemen thank you for taking my call alan what is tonight what is tonight you know something i'm actually out of town right now oh boy oh alan i'm guessing there's a big game john just first game of the world series that the astros are going to win but whatever go ahead with your question directly into the phone we had you nice and clear there for a second yeah okay so [Music] uh unfortunately last month my father passed away oh man i'm so sorry yeah it's it's still hard yeah absolutely man how do you pass away cancer cancer i'm sorry he he fought the cancer for two years when the doctors two years ago gave him eight weeks to live so he did good he's a warrior that's right man yeah dad was always a big time fighter he he did everything great he really did it's awesome man so how can we help today so i stand to inherit between some in the neighborhood of about five to six hundred thousand okay i have been a truck driver for 22 years now i could actually with that kind of money buy my own truck and trailer i would then stand to profit probably about an extra 50 maybe 75 000 a year up above what i'm making now okay do you think that something like that would be a good investment or just putting half a million dollars into a good mutual fund and just let letting it do its job down well the the latter with you starting your own business is a whole lot more work i mean if you put 600 000 into a good growth stock mutual fund and it grows at 10 percent uh with a rate of return that's 60 grand a year right there which is what you said you'd be making profit from the business now if you want to start a business because that's your heart and that's where your passion lies then i think you start this business uh what's your whole financial picture look like do you have any debt currently uh about 28 000 on the car loan and that's it okay and do you have a mortgage no i would like to eventually buy a house okay so that was my question is what are the what's the whole picture so we can really look at your goals uh holistically and go all right if a house is your goal maybe we do that before we start the business and get into the into the trucking game so you're you're renting right now yes okay if i'm you just this is just brushing over it i'm gonna go all right i'm paying off this debt a1 this 28 000 car loan is gone as soon as you get this money followed by i'm gonna pay cash for my first house and do that as a way to honor my dad and the legacy he left well that's really important to me actually in fact the day i get the money um taking 4 100 hours and pledging it to his synagogue because that's what he would want to do with it awesome yeah because his wishes are most important right now i just want to make them proud yeah yeah um when when do you expect to receive a check um it's going through probate right now okay um so i already received about 150 from an inherited 401k and the rest of it i added another 2 2 50 i would say probably before end of the year and then there's another 200 and change invested in a building that me and my brother now own outright okay so it depends on when we sell that and all that stuff so here's what i want you to do i want you to do nothing for six months okay okay and this is the advice that i was given by the guy who who trained me in crisis response and it's been wisdom that i've passed on over and over nothing will make sense for six months and you're gonna think it does one day and it's not the next day you clearly loved your old man he was an awesome guy he left you a legacy he left you with with you and your brother with financial security and you're gonna be grieving this and letting this settle for a season so i don't want you to sprint off and say oh i got to go do this gotta go do that i want to spend this money before before you even have the check in your hand i want that money to get to you if it's coming in different investments you may want to hang on to some of those investments and not cash them out or you may have to take um graduated withdrawals from them depending on what kind of accounts they are so clearly sit with down with the smartvestor pro to walk through what you've got um but i want you to hang on to this for six months dream a little bit think about it a little bit and maybe i want to get out of trucking all together or i love what i do man it's always been my dream like george said i've wanted to have my own business forever actually i just want to buy a small house and settle down for a season and become a local driver right it's all those things um it just gives you some space to grieve some space to make some of those decisions does that sound okay yes it does awesome very cool we'll be thinking about you and your family praying for you and what a cool legacy that your old man left huh yes he did he did he he did very well in life in business but the most important thing too was his family that's all that mattered was family family family incredible incredible thank you so much for the call brother yeah thanks for sharing that story that's awesome john i love to hear situations like that where it's not easy but it makes it easier when you're not left with a financial mess and instead there's a financial blessing on the other side yeah it's such a gift to be able to say what do we want to do not what do we have to do you've got options that's one of the best legacies you can leave well so financial financial legacies are great and so i just imagine my kids sitting around saying man that guy loved me i can't think of anything more incredible wow love it very cool awesome this is the ramsay show [Music] [Music] our scripture of the day comes from 2nd chronicles 15 7. but as for you be strong and do not give up for your work will be rewarded christopher columbus said you can never cross the ocean until you have the courage to lose sight of the shore amazing we had quotes back then john who's writing these down 1450s yeah i'm calling i don't know about that one he's calling the bluff on columbus there all righty well hey i'm george campbell ramsey personality host of the fine print podcast and entree leadership podcast joined today by the amazing dr john deloney host of the dr john dolone show you can find all those shows on the ramsay network uh wherever you find podcasts all the stuff john's show is on mondays wednesdays fridays youtube podcast it's everywhere that's right i can't get away from it john i pull up my youtube and it's all john dolone clips you've taken over yeah see i have this um it's cool my job is every day i don't get to just do a series like you do oh that hurts that hurts john the amount of work we put into our beautiful narrative storytelling podcast let's do ten episodes and call it good for the year we're whittling away with a little pick to make a perfectly crafted 30-year podcast you found a glitch in the matrix so congratulations i have to show up every day to record my show so it's cool man hurtful it's good well uh it's been a fun ride guys me and john clearly uh two two hours and 40 minutes is our limit together before john james is about to pop in i actually don't show up every day either so it's okay well the way to avoid all of this is to go to the phone lines john that's where we do our best our best work and nina is on the line in pensacola florida nina welcome to the ramsay show thank you for having me absolutely how can john and i help um i have a question about trying to minimize the accumulation of interest on my um on my loans okay on student loans yes sir i have um i have federal student loans i also have a private loan and they have credit cards as well okay so you want to minimize interest what was the the thinking behind minimizing interest just you you don't want to pay more than you have to pay yeah um ideally i would love to be able to start paying it off but realistically i'm in an intensive nursing program right now and i don't graduate until after the summer of next year um so i wouldn't be able to start working to start paying it off so um i actually tried to transfer my credit card debt um to get zero apr for at least a year try to get that interest down i don't know about loan consolidation if that would help but try to get the interest down are you continuing to take on debt as you finish this program i am um i am finding ways to pay for it um as the semesters come i'm not taking any more federal loan that i'm not taking out any private loans at the moment so what are you taking out to pay for this um the money that's been coming in from covid like um the school's been sending me money for clothes like um relief funds and then everything that supplement my parents have been helping me to cover it yeah okay well the interest has been paused with the student relief um extension being in place until january 31st so february 1st payments are back on interest back on and so the best thing you can do is pay off your loans while you can right now but it sounds like you don't have the cash flow to do that as you continue to finish this program so the only way to minimize interest on your loans other than refinancing getting a lower interest is to actually pay off the debt as quickly as possible and so that's why we recommend what's called the debt snowball and it sounds counterintuitive because what we say is hey ignore the interest rate you're just going to list the debts from smallest to largest the balances you're going to pay minimum payments on all of those debts except for the smallest debt and on that debt you're going to attack it with a vengeance with everything you've got with side job money any income you're going to shave your expenses down to bare bones and attack that debt because once you do that you free up a payment you are making on that debt and you use that on the next debt and the next debt and the next debt so that is truthfully the best way to minimize interest is to get rid of the debt as fast as possible all right since you're still in school and i do know a special medical intensives whether it's nursing or nurse practitioners or you know you're in your clinical rotations in med school whatever i understand those are those take up your your entire life you're working 10 to 12 hour 14 hour shifts and then you're doing class work at night and then you're starting up and doing that over again your goal right now is to get through school with no more debt stop the bleeding okay put a put a plug in that in that drain so the water doesn't keep coming out trying to fill up the drain doesn't matter if i mean trying to fill up the sink doesn't matter if the if it's just all draining right back at the bottom so stop the the drain stop the bleeding i'm going to use as many metaphors i'm just going to use 30 of them in this one a lot of medical analysis too many but stop that and then when you get done with school you're gonna have to make a commitment to yourself that you're gonna do what george just said put those debts in in order smallest to largest and you're gonna start knocking them off and you're not gonna buy a new car you're not gonna go buy a new house with your big nursing salary you're gonna just spend that first year that first two years getting out of debt and you're gonna set yourself up for a lifetime of peace okay good for you thanks for the call nina we are going to selena in salt lake city selena welcome to the ramsay show hi thank you for taking my call absolutely how can john and i help okay i just sold my house today earlier today congratulations thank you thank you i'm currently i moved out of state recently moved to utah so i'm currently paying a higher rent than my mortgage was but i sold my house earlier today and with the money i intend to pay off all of my student loan debt which is about thirty nine thousand i love it i'm going to take five thousand dollars add it to my emergency fund which will bring that up to fifteen thousand and then i'll have forty thousand left over and so my question is what do i do with that because i i don't have any car payments credit card debt um i don't have a mortgage um and i don't want to just put it in a bank and have it sit there that's awesome so selling this house has catapulted you from baby step one to four pretty quickly yes where are you gonna live um currently i'm in oregon utah i moved here for work from nebraska but are you just renting an apartment yes renting a town home uh the market here is actually worse for maybe a a not very nice condo or townhome they run about like four hundred thousand wow we're out for out for outdated condos that need all new flooring and on a busy street and a corner spot so that's and it sounds like your next goal so you you'll be investing 15 with this new job i assume into retirement i'm currently at 8 and that's another thing because of my age i don't know if you know if i should do the traditional or the roth um i struggle with that um but currently i'm investing eight percent into my how old does it work i'm 42. okay i mean you can definitely connect with a smartvestor pro in that area to go hey what is my best bet based on when i want to retire what my goals are but on the money side once you've got i would bump that up to 15 regardless of if it's in traditional roth don't let that paralyze you in your decision-making process but once you've got that it sounds like your next goal is to plant roots there and maybe get a house um not necessarily my daughter has two years of high school left and so i i just there's a lot of uncertainties right now so you might be moving again in a few years i'm i'm i might be and so i'm thinking whether it's buy a house and you know either here somewhere else i'd like to possibly have that money work for me somehow but i just don't know where how you know do i open up my own vanguard account and do a you know standard s p do i dump it in my retirement which you know what i wouldn't be able to use later um i think beyond the 15 it comes down to hey do i want to save up for the down payment in the future whether it's in salt lake city area or elsewhere and you can park that money in a high yield savings account and get a half percent if it's going to be long term if it's if you're talking three four five plus years you could put it in some index funds in vanguard you could put it in some mutual funds to let it grow at a higher rate but if it's going to be short term i wouldn't go investing into the market yet especially if you don't know what the next few years looks like okay so short term would be if i'm not going to less than four or five years yeah one to two years yeah if we're talking one to two years that's too short for me to be jumping in the market but if it's longer than that if you're talking three to five you can park that in some index funds or mutual funds and let that grow thanks so much for the call it's been a fun hour john our thanks to james child's producer austin selby on the phone screening kelly daniel associate producer and you america thanks so much for listening until next time spend wisely save intentionally and give generously this is the ramsay show [Music] hey it's kelly associate producer and phone screener for the ramsay show if you would like to do your debt free scream live on the show make sure you visit theramsieshow.com and register we would love for you to come to nashville and tell dave your story [Music] you

Channel: The Ramsey Show - Full Episodes

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Keywords: dave ramsay live, dave ramsey, dave ramsey channel, dave ramsey live, dave ramsey live show, dave ramsey live stream, dave ramsey podcast, dave ramsey radio show, dave ramsey show, dave ramsey show full show, dave ramsey show live, ramsey, ramsey solutions, the dave ramsey show, the dave ramsey show live

Id: QDAOkxv7Ubo

Length: 122min 51sec (7371 seconds)

Published: Mon Dec 27 2021