[Music] Sara's with us in Savannah Georgia hi Sara how are you good how are you doing better than I deserve what's up I'm calling because I have a year and a half left in school I've set out for the last year did some financial reasons of course I have 29,000 in student loan debt and I'm just trying to figure out is it worth going back to school so they got more in debt to completely degree or just work on tackling the debt and also I'm currently engaged and we're trying to do like a cruise wedding so I'm just trying to figure out which is that Wow and so what do you make I make twenty-eight thousand six hundred a month I mean a year I'm sorry yeah that'd be nice yeah and what does he make 26,000 yearly okay and what are you planning on spending on your wedding um well if we do the cruise destination is looking at about five thousand okay and do you have five thousand right now no when when is the wedding we were looking at tours November of this year so can you save five thousand between the two of you by then yes we started budgeting this year and we figured by the time April comes we should have at least a five thousand okay good that's a good plan all right so we're gonna pay cash for the wedding your whole wedding expense is five grand yes okay it's an inexpensive way to do it that's good and kind of a cool thing I like it when you are married your household income will be about fifty five thousand dollars a year okay you make you have $29,000 in death do you have any other debt I just bought a card you just bought a car yeah because I didn't have my thousand dollars paid for my emergency fund and my 2010 Ford Fusion needed some repair like CV axles great minor things but they still add up mm-hmm so I my expensive a car did you buy twenty thousand it's a 2014 season you're kidding me you spent twenty thousand dollars on the car yeah and you're broke good sell the car okay that was stupid okay tell me you know that was stupid I felt the brunt of it acted like three days later when the gentleman was like well you have 30 days to bring it back and I'm like I just feel like this are you within the 30 day hmm I brought the vehicle no I think my 30 days I might have just ended less we yeah call them and call them and beg them uh-huh to let to let the 30 days count and let you take you back and you go and you go get you a thousand dollar car okay you honey you only don't even don't even start talking okay not after doing that I'm giving you hard time you have to know that was dumb you make $28,000 a year you signed up for a $20,000 car debt and you are already $29,000 in debt on your student loans and broke yeah that you have to hear that okay I'm not trying to be mean to you but you got to break this thing out of your brain or you're gonna constantly as a couple be wandering back into this mess and I'm not gonna be able to help you because you're gonna continually go back to this back to the slaughter I mean you just walked out right in front of a gun and said shoot me I mean it just I don't want I don't want you to live your life like that honey so here's what I'm gonna do I want the two of you as my wedding gift to go through Financial Peace University that's our nine week series once you get that car taken back call them today and once you get your little little beater car or some kind to get by until you get some of this mess cleaned up now what were you studying in school okay a ministry health care administration okay and what do you do for a living now I'm an assistant manager at their B&B okay so you're not in the health care field yeah do you want to be in the health care field I do okay can you study that at night and finish it in pay cash as you go maybe after the wedding yes but some of the classes do require me to be in the actual well do they have do they offer them at night yes but with my work schedule I don't generally get off in time to take those close yeah you might have to rearrange your work schedule in order to finish your degree but I don't know that you necessarily have to do completely all school or all work my point is maybe we can finish up school while we're working while we're married and while we're paying off the debt and but pay cash for the school as you go you pay cash for it and whatever you're going to do don't add debt pay cash for whatever you do is you go work your way down through it that way and and pay cash for cars as we go pay cash for the wedding you already got that one on the run good for you that was a good decision and we'll pay cash for the cruise wedding and but let's let's say let's take as many classes as we can and then if we have to talk to the B&B and say guys I got a dial back a little bit because I'm this close to finishing and for one semester here I need to be able to take off on Thursday nights you know okay they'll work with you or if they won't find a different job yeah but I wouldn't just quit my job to go back to school full-time no no okay this more so for more income okay yeah I think I think you can make more with your degree and I think it's a good degree to finish and and healthcare is a good field to be in particularly Healthcare Administration with as much up evil and chaos as there is in that world someone that goes in there with a cool head in the middle of all this mess can probably you know do some good for some companies let's end with a little bit of academic it you know under your belt so you're right on track but the glaring thing in this discussion is poor car and please talk them into you and your fiance go over there and go hey we just got engaged and you guys please if even if we have to write you a check take the count this in the thirty days even if we give you a thousand dollars just to say thank you give them a tip you know to pay the salesman or something right but be able to take the thing back because it's just insanity the numbers on that just take my breath away how bad they are and I want you to get because with no card debt and the wedding is saved up and paid for and we're paying cash for college as we go along and then we can begin to knock out the twenty nine thousand as well see you're gonna be in a really good place in a very short period of time but when you drop a twenty thousand dollar stupid car loan in the middle of it it just blows the thing up it makes it very hard to pull off so really really really bad decision there on that one but you can recover from it let's get out of it let's do something to get out of that deal please work very hard to get out of it and don't use them saying no and smiling as a as an excuse you've got to work your way away from that it's just really really bad so and hold on Kelly I'll pick up I'm gonna put you through Financial Peace University is my wedding present to the two of you what the two of you to go through the class together and you'll see what I'm talking about it'll start to come together for you and you just you see how avoiding debt causes you to be in a position to be outrageously generous and to build well brenda's with us in phoenix arizona hi Brenda how are you hi call sure what's up in your world well we're in a big mess I decided listening to you later about a couple months I read your book some money makeover and my um my question is I have a lot of people tell me I should just do bankruptcy and I don't wanna go that route and I'd be like me listening to you so I wanted to if where am I at I have babysit one I got my thousand dollars please okay how much debt do you have I have um I have a home equity from six years ago a hundred thousand six years ago just is it you still have the home no we lost the home but the home equity we bought if we got that hundred to buy the second home which we lost both homes six years ago okay so you're a hundred thousand on that and have you been paying on that no how long has it been in default it's six years you've not paid on it in six years no okay what else I have a $40,000 medical from two years ago and haven't paid on it in two years nope nothing and I got eighteen thousand dollars in credit cards and said they already collections now so for the last six years we have not done anything okay have you been paying on the credit cards when was the last time you paid on them I haven't paid for the last five years okay and I do have two credit cards for assuming you know you know there's any papers food women they're sending the women they actually sent you lawsuit papers or a letter saying they were going to sue you there from a law firm that doesn't matter was it an actual lawsuit long court documents that said you had a court date yes it was from last year okay and and how much are those two cards those are five thousand and that's part of the eighteen or is that in addition to the eighteen what is your household income Oh myself employee would be average of every year about sixty thousand so why have you not paid bills I don't know I don't know we just I don't know we don't we just I don't know we kind of just hide under and didn't take care of it I know where we are you know we're being renting for the last since we lost our home no we um I would like to move on and you know well filing on filing a bankruptcy would clear this hundred and fifty eight thousand dollars in debt okay that it looks like you've got it would clear that at chapter seven would clear that I'm not sure you're going to qualify for a chapter seven it might the means test might throw you into a chapter thirteen which would cause you to pay payments into bankruptcy for five years are you II what was is his income steady at sixty-five or is he starting to increase his income it goes up and down are you working outside the home now I'm at the position like award my kids are now are going to school and I'm able to get a job you know in the morning you know if the job is weird so different hours different schedules so I'm the one who can run the kid around so I'm considering ending the job you need to add some income if you can add twenty thirty thousand dollars income to this situation it changes everything yeah okay so here's the thing if we add up all that debt and say it's one hundred and fifty eight thousand hundred sixty thousand dollars for the debt it is very very old debt by and large they have given up on it even the one that serves you even the one that sued you isn't doing anything with the lawsuit they just took a judgment against you but they're not doing anything with it meaning they've not come and garnished wages they've not come and try to take money out of your bank account or anything like that so you know they're not they're not being that aggressive or proactive I mean they're probably calling you occasionally some of them in raising Cain but they're not actually doing anything you follow me and the debt has probably been sold and if it's been sold a lot of it's been sold to debt buyers and they buy that at around a nickel on the dollar mmm-hmm five cents on the dollar okay fifty dollars for a thousand dollars you follow me which means that if you made them an offer of ten or fifteen cents on the dollar you could clear all this debt and I would take a lot of work to contact each one of them negotiate with them get them to accept that but eventually you could work your way through this for around ten or fifteen cents on the dollar no the home equity defendant now for last year for twenty five thousand let's say that's a quarter on the dollar they're already closed but you don't have twenty five thousand so you'd have to save up the money to make them an offer they're going to be the hardest one starting so you'd have to save up you need a lump sum in your bank account and then you call them and go I have $15,000 cash I will give you today if you will settle this and they'll take it they'll take it but they're not gonna take it easy they're gonna whine and try to negotiate try to get more go back and forth and the same is true with these others so that tells us that it would take you two years of hard work and saving and negotiating and fighting and scrapping and arguing with these people and getting it all in writing all these different accounts okay it's a lot of administrative work for you but if you did that for two years you can clear this debt for somewhere around twenty twenty five thousand dollars total and you could you save up a little bit clear one save up a little bit clear one save up a little bit clear one and you know the last one is the home equity loan and you save up fifteen thousand and bone you knock it out okay that's your alternative to bankruptcy or you can file bankruptcy either one but I I think you can work through it but you really have a lot of work ahead of you to work through it but I think you can do that you're broke you don't have any money as you save up money you call and negotiate with them now if you're going to go that route make sure any settlement you agree to that they agree to before you give them any money two things you have to remember get it in writing and never an electronic access on your checking account always in writing and don't let them have access to your checking account and don't give them any information about where your husband works or where you bank or anything like that you have to stay stay in the distance in the fog and negotiate with them this is the Dave Ramsey show Roderick is with us in Pittsburgh hey Rodrick how are you I'm doing well how are you better than I deserve what's up well here's in a nutshell my wife and I are planning a move to start our careers she is graduating you know about a month or so well we both have a substantial amount of student loan debt the neighborhood of well over $600,000 $600,000 yes well over that we're both positions more have so they're freaking brain surgeons what's your visualization on family medicine see psychiatry oh my lord all right these are not exactly high-paying fields how'd you get six hundred grand and depth of that well I'm personally I came from a single-parent household and I had to pay for college graduate school and medical school so alone and boys also took out loans to pay for graduate school and medical school so what do you project your incomes to be first year well for residency we're starting our income will be about combined about a hundred and eight thousand dollars a bit but when you get on reservation what are you projecting what comes to bright when we gather of our residency you should at least triple if not quadruple I think we would both make in the neighborhood of about two hundred thousand to start he's a family man behind or not well income has increased significantly medicine in the pan over here no none okay I work with work with talks all the time there laughs what you're looking at probably unless you get an unusual gig of some kind if you can get 200 I'm not gonna be mad at you you need it because you sure have a dadgum huge mess on your hands right what a mess yeah you guys need to live like college students until this is gone I don't care what your income is you know and not just so the question that I had was in tons of this debt that I guess conceivable to consider it as more of a mortgage in terms of debt when you consider the baby steps there's no mortgage but I wouldn't consider it a mortgage no you need to clear it up two years okay you know you're making 400 you need to live on 50 and clear it up in two years right and that was what does definitely the plant we don't plant and buy a house or anything until we clear up in the hall where the parties how would you consider it a mortgage if you're paying it off and well yours I was we were thinking in terms of the baby steps and sort of the first years now I've been paying off that and then building up emergency fund so we allocate we're making $400,000 a year or $300,000 a year you're not gonna need much of an emergency fund oh and they said I'm just talking about starting this year because I making that much money isn't until about year one or five you know so that's one of that's what's scaring me here yeah you need to live on nothing and pay everything above nothing towards this disaster you need to be in panic mode dude I mean I can't breathe and it's not even my dad six hundred and seventy thousand dollars worth of that and you're just nonchalant about it he want you operating on me unbelievable man what a mess yeah you need to really really focus on living on nothing no house buying no car buying no vacations no eating out and completely focus on cleaning up this mess to do this is if you do not do that you're gonna be in debt for decades if you're not careful here I'm so sorry what a horrible thing to be facing I can't imagine how overwhelming that must feel or should feel a Liz in Orlando a how are you I'm doing well sir how are you better than I deserve what's up so I just started your program and I'm on baby step two and I have an issue I I make about 120,000 a year but I have about 125,000 that and I have a vehicle that is about nine hundred and ten dollar payment a month my question is how do I get out of this what can I do I don't know I'm just small so to see if I'm not sure what to do holy crud nine hundred and ten dollars what are you driving dude just a pickup truck the Dodge pickup truck yeah okay what in the world is this thing I mean how did you is a high interest rate high interest rate sixteen percent seventy three month payment I've been paying on it now for about probably two years twenty nine months what do you owe on it today what's the payoff today I believe it's twenty nine thousand it's worth about nineteen okay goodness gracious mmm-hmm how much is your house payment I'm thirteen hundred your truck payments almost as high oh yeah I mean if I'm in your shoes I'm waking up don't don't you wake up and every time you get in this thing and start the key on it you wish it would explode I mean you got to be kicking yourself like every time you drive it right it was an absolutely yeah I mean you make really good money congratulations yeah and really selling this truck is not gonna fix the whole 120 thousand dollar problem but it helps with cash flow so considerably and I gotta be honest with you if I'm in your shoes I've done a lot of stupid stuff out I mean I've done stupid with steroids I know what it looks like okay and so when I do something stupid I don't like to be reminded of it every day does that make sense if dave was in there I'd be selling it just so I didn't have to remind me of it every day I mean I'm not sure it's gonna make that big a difference in your short-term finances but I just wouldn't want the 16 percent I feel like I'm being you know I'm being abused every day which you are and I'm looking at this thing it's like pointing stupid arrows at my face every day I would have to get rid of it for those two reasons it helps also with the money because the 910 dollars is going to clear a lot of debt for you a month that's $1,000 a month towards your other stuff if we can get you out of this so what I'm gonna do is run out with the credit union your credits are obviously trashed and see if you can talk them into borrowing the difference where's the loan crisis it's not it's a Chrysler credit yep I didn't realize I did subprime stuff like that to that level Wow okay yeah you got to borrow that 10k that you're in the hole or you got to save it up to get rid of it one of the two so you can get the thing sold where'd you hear where'd you get the $19,000 value what is that I just Kelly Blue Book is that retail or wholesale that was if I sell to a private price me okay yeah that's probably your real value then and you probably rolled some negative into this too didn't you yeah it was about 2 grand yeah yeah 3 grand that makes sense all right yeah I'm if I can find the money to cover the difference that you're in the hole if I'm in your shoes I'm getting rid of because I don't want the reminder I don't want the 16% and I need the 900 bucks to clear my dad it's not like it clears all is only 20% of your dad so it's not doesn't really fix your debt problem short-term but it does do those three things and so I am dumping it because it's just the whole deal is just absurd Wow I'm so sorry you're facing this ouch ouch ouch ouch thanks for calling in Scott is with us in Chicago hey Scott how are you good taking my call this sure what's up so I'm on number two and the thing that seems to be giving me the most trouble and the most frustrating is I have $50,000 in student loans so let's need to be paid back over the next 20 years actually so I pay at the minimum coming out which I don't plan to do but so cost me over $100,000 that's absurd it's not even an option yeah so what do you make oh well I make on a thousand good so how fast are you know 50 what's that so how fast you're paying off fifty one year I will ah I guess I guess my question is why they don't drive off why not okay why not pay I'm not to that payment yeah I'm so going off a couple of other things oh okay so you got other debt how much other dad have you got cool but you make 100 grand are you single no engaged oh good good cool when you're getting married December 2nd oh okay you haven't pay for part of that no good good so so basically we've got from now into December making $100,000 and you got about $54,000 $55,000 where the debt is that right okay so you're not quite gonna make it in a year but you ought to make it in 18 months shouldn't you well a hundred - well let's just say 18 months 150 minus 60 is 90 you can't live all 90 in the next nine eighteen months not counting taxes I guess I lost you there someone okay let me try again you make a hundred a year okay so a year and a half of income would be a hundred and fifty wouldn't it right - sixty worth of debt would equal 90 - type - some taxes right - or taxes but you can't live on 90 over 18 months no you're right I am I also cannot invest Americana at all it's not at all no no you're you're broke man you're not invested in retirement you're getting out of debt not even if it's not dude I don't care if it's matched 20 times over you got $50,000 in student loan debt you just call me up whining about paying it off over 20 years we got to change that if you'll get this out of the way your most powerful wealth building tool is your income and right now it's all committed to somebody else I want their name off your income in the next 18 months then you're in a position to boom man you could smack the crap out of that 401k after that right that make sense to you yeah just leave it there but stop adding to any retirement temporarily women you're a new you're a new listener right yeah okay I'm sorry I was treating you like an old listener I'm beating you up I apologize okay so here's the thing we teach a thing called the baby steps where you do one thing at a time in order in right with the premise the premises of this that your most powerful wealth building tool is your income if you have no payments you're in a position to build wealth very quickly and very easily and that includes building first an emergency fund of three to six months of expenses so baby step 1 is $1,000 start that's a little starter emergency fund baby step 2 is no life scorched-earth lifestyle we're cleaning up debt because we're gonna be we're gonna be so intense and so focused and get it out of our life as fast as possible because you have sixty thousand dollars of barrier between you and your dreams and I want it gone boom ponch it okay and when you knock that thing out then that set you have to go back to that thousand dollar raise it up to a fully funded emergency fund by the time you do that you're married six months okay okay and you got her income in the mix which is going to change the equation here but I'm just using this as an example three to six months of expenses are set aside and now you've got a fully funded emergency fund let's call that twenty thousand bucks and you have no payments in the world does that feel pretty good yes now you step in and you don't take the measly three percent match in the 401k you max that puppy out or you take it up to 15 percent of your income then we'll save up and pay off your house next and with no house payment holder you everyone cool by the time you're 40 you should be have your house paid for and all this stuff cleaned up in a paid-for house and dude you'll be a millionaire by the time you're 45 if you do that guys yeah the math works I'm not making this up I've done it before so here's the thing well you and your fiance are getting married in October you said yeah okay so we have a nine week class called Financial Peace University you go once a week one night a week for nine weeks and it shows you all this stuff and it shows you how to handle money it's not get rich quick it's get rich slow it's the hard way to do it but it works every time and the number one cause of divorce and money fights in America is are the number one cause of marriage fights in America is money and money problems so I'm gonna give you to that class as my wedding gift and I'm gonna show you exactly how to do this stuff and then you call me back if you've got any questions I'm gonna pay for you to go hold on Kelly's gonna pick up we'll get you signed up and get you going boom we'll get this whole thing started out there guys it's amazing if you just take a step back in that interesting how you think 20 years I'm gonna be in debt and then one conversation in some basic math and you go hey hey wait a minute I mean I don't care this now the highest probability chance you have to building wealth is to be debt-free folks your highest probability chance of getting out of debt is to be very intense very deep cuts and do it fast band-aid off quick snatch that's the best way put it so that's how you don't take it off slow snatcher you get after it that's the highest probability of getting out of debt which then gives you the highest probability of building wealth and being outrageously generous throughout your life and being in control because you have to learn to be in control to pull this stuff off but hey nobody wakes up a millionaire goes help that happened that was accidental no it's intentional steps people this is the Dave Ramsey show tony is on the line in tampa question for Ken Coleman today hey Tony what's up hey Dave hey Ken are you doing good are you sir doing good I just lost my job this morning I'm 24 years old going on 25 and I just lost my job and it was a six-figure income so you know a hard job to find what in the world happened and what were you doing so I've been in the car business my whole life kinda just got thrown into it the whole family you know everybody's in the car business for the same company I was sellin lots of cars first place every single month and you know some of the cars that were selling they had you know bad car facts I'd work with a guy for five days straight and the CARFAX would be bad and I decided to leave the car fact you know out of the you know I didn't show the guy the car fact so I guess that could have been a lawsuit or something and they ended up firing me it was mercedes-benz so you know they're real strict with everything you leave the toilet seat open you might get clipped mmm well first of all we're sorry this is not a fun day but I want at least encourage your heart for a moment you're gonna survive you've got to learn from this anytime something like this happens you don't want to move on from this you want to take as much personal responsibility as you need to and then figure out okay what do I learn from that not let that happen again and move forward so six figure income we've got to ask on the Dave Ramsey show where you at financially are you where are you at in the baby steps do you have any kind of emergency fund yeah I've been putting a little money away at no my job's real strict and the security there's not too good just by you know knowing where the managers are at mentally and that kind of thing they're just real strict with everything I've only worked there now it's a six-figure income but I've only worked there this is my third month there and my first second and this month I'm all in first place with a perfect CSI which is you know your surveys that come back so my customers love me but I was thinking with emotion more than I was with my head so I know that's where I went wrong well Tony so where you at do you have an emergency fund at all what is it how much um yeah I have about 15,000 dollars saved up do you have any debt yes I do how much my bills every month they're right around 2000 a month yeah but how much debt do you need to pay off if you look at all the money you owe how much how much debt do I need to pay off on the car no debt to pay off I'm renting my apartment and my car is least I know you hate that Dave but it is leased all right Dave I'll let you handle the money stuff in a second here's what you need to do Tony you really need to I think you ask yourself the question why did you do what you did which got you in a situation where there was a clear company policy and you violated it and they take that stuff serious and as a result you're out of a job so you really need to reflect on that we don't want to beat up on you but that's important secondly do you love sales you're 24 do you like to sell yeah I love to sell in certain environments so there's certain places I've sold that that I didn't enjoy on the first real job that I did like was Mercedes the clientele the money of course and the cars I enjoyed selling the cars all right you're 24 where'd you go to what did you go to school for did you go to school and what was it for what was your major I started college and I was just going to get a business management degree because I had no idea what I wanted to do so I was like just to go to school for something I ended up not going for I ended up stopping school after about two years you know once it started coming out of my pocket I just really you know didn't care about what they had to say I was more interested in making money and that kind of thing so for a couple years now the professional poker player okay well Tony you're all over the place so I'm gonna give you a couple pieces of advice and this is something you're gonna need to do actively first things first is you've got a little bit of a cushion with that $15,000 you're single I'd get rid of the lease obviously Dave can this Dave can speak to that but I want you to sit down with three people you can make it five or seven I don't care but some people who really know you they care enough about you to tell you the honest truth they'll be blatantly brutally honest with you and I want you to ask the question of yourself and then let them answer it which is what is your greatest talent what do you do better than anything else and then what do you care about if you love selling but you want to sell something that lines up with your values I mean it matters to you then that's where you need to be heading but before you even make that big decision you need to get employed and you need to lick your wounds here and also learn some valuable lessons Dave Tony my son is 25 and this is what I would tell him if I heard this story from him number one you have a tremendous upside you have a gift with people and you have the ability to sell what sometimes comes with that is a BS artist and you've been biessing even on the phone here toilet seat up is way different than freaking not giving a CARFAX report you should have been fired you deserved it not because you're not a good salesman because you completely violated the thing here I'm a Mercedes customer you completely violated that you would have been fired if you were working for me and I would have cried because you're such a good salesman when I quit when I fired you and I would have cried for you because I wouldn't want to break your little heart but you man you're just completely stepped in it and you cannot allow your your gift with people to think that that entitles you to cut corners that's the poker thing that's cutting corners that's the going around the carfax thing that's cutting corners your gift with people doesn't give you the right to cut corners it demands that you go right through the middle and that integrity become your number-one goal posts that you check everything on from this day forward if you'll take that with your personal gift with people you're gonna make $200,000 a year the rest of your life we're gonna be very wealthy you're gonna have a lot of healthy great customers because I can tell you this about you you like selling a quality product Mercedes a quality product and you like dealing with intelligent customers because most of what most of Mercedes customers are well ield they love that product because it's a quality product most of them are very successful themselves they're easy to sell to for that reason again I'm one of them but you got to take that other little piece of this and digest that part of it from today and make that your goal post so I'm gonna be the first one in your corner like Ken said put three people in your corner that loves you enough to tell you the truth you have a tremendous gifting young man you can be anything you want to be you could be the CEO of a major company with your ability to deal with people in your ability to sell but you can't you will never achieve that if you shortcut if you think you are the if you think you get to go around the side of something because of your verbal gymnastics Kim you can you and I both have that ability and so it's talking to both of us I've done the exact same crap when I was his age here's the deal Dave this is a road block or a stop sign that he created for himself and it's a gift at 24 to go wait a second this is a temptation for anybody who loves to sell you know this any others know how to use a word properly and there's a phrase there's a thrill in getting the deal done yep and it it it'll cause us to be tempted to cut corners like you said Dave and end up getting ourselves in big trouble know why you love to sell and love what you are selling so you're not tempted to cut corners so if you get this lesson from this firing you'll look back when you're 34 and let's take a tour and you'll say this is the best day of my life if you take the less in a way that they were right they were not petty toilet seat up is petty you tried to match it up with petty it was not petty it was deserved but you're a good man and you've got the ability to make big money and do the right thing with this gifting and you're gonna you're gonna be somebody dude you call me back and I'll help you I promise this is the Dave Ramsey show Roland is with us in Joplin Missouri hi Roland how are you all right Dave thank you so much for talking and thank you for sharing common sense sure not going to help I've heard you speaking to people for us about loved ones and the loved ones are making bad decisions but I'm married to that person right now and some of the bad decisions have kind of led us and hurt our family medicine to a bad place weren't homeless and very much behind on bills herself I like to get all the bills caught up we're about 4,200 ollars climbed on just regular Bills of rent and electric and the utilities but you know how is that her fault partly mine too because I let it happen yeah she long first off woman over a truck driver and while I've been on the road some of her friends that she had had troubles in their lives and become homeless and she wanted to try and help me so she let them move in the house at the time didn't think it's a good idea because we were kind of struggling ourselves but she went ahead and did it anyway and a lot of our resources have went into the last eight months of trying to help those people try and get jobs and get back on their feet and when where are they now I've gotten all of these out of the house there's only I thought you said you were homeless well we became homeless two weeks ago and before that how it happened we got over of your foreclosed on no behind on the rent and addicted okay so where are you living currently the hotels campgrounds whatever we can get into so obviously all of those people you were helping are now gone yes and so what is your income okay and how far a much do you owe in back rent about $1,000 and how much D and you should $4,200 and one else 1700 and electric 500 in gas I think we got the water caught up and the rest is mostly recent medical bills and that's another three thousand or two thousand or what about two thousand yeah what kind of medical bills what kind of medical event did you have I have Crohn's disease sleep apnea and it study trying to get the sleep apnea taken care of and doctor's visit a lot of time for you if I thought I'm 34 how long have y'all been married will be 10 years of September all right so if I were to sit down and talk to her would she tell me she's learned her lesson yes and I've also tried to sit down to hold on how kind of a dream meeting to see what we can where we go from here since you have languor lesson and what she tells me is that she doesn't want a dream 7 want to think about it because she if we dream and it doesn't come true she doesn't want to be disappointed well let's dream not about not being homeless how's that that would be pretty cool to not be disappointed you know and let's dream about getting this little handful of dirt you know five thousand dollars changes your whole life what did she do for a living she's disabled and say some with kids this takes care of the kids and how much disability is coming in no she's going through a disability process right now at the courts what is the nature of her disability it's physical pain she had a head-on collision with a dump truck and has left her injuries on the left side of her body that prevent her from standing for long times and or doing a lot of physical work but she could do white-collar work I think so because you guys need some extra income right now well so I think she needs to find a job so that you're not homeless and so that $5,000 comes in and you clean this mess up so let me tell you what I'm hearing rolling okay I'm hearing a couple whose every individual part of their life and their marriage is completely spiraling out of control there are so many different variables that are crazy and what you gave me in about a three minute thing here that it's no wonder y'all ended up where you are and I'm not saying that to put you down I'm saying that there's a lot more going on here than your wife couldn't control her spending there's a marriage breakdown there's her absolute lack of judgment that's beyond belief and yet she's supposed to be watching over children and she's disabled and yet not getting disability so she needs to be working and you've got to somehow interface with all of this and take over these bills and put the family back on I don't know that a dream meeting is in order a crisis intervention might be in order but I don't think a dream meeting is in order we might have a nightmare meeting like how do we get out of this nightmare but that that start so what I would tell you to do if you were my 34 year old little brother and you are is to grab a local pastor and sit down with them and let's start the process there with marriage and spiritual walk and you guys start trying to just push some of the crazy out of your life and let's try to get back to some solid ground in the middle in the center of your life and then rebuild your relationships based on that and start making positive responsible decisions both of you that involve work ethic involve frugality involve laying out a plan and you can do every bit of that it's very very possible but I I think that's where I would start if I were you is I'd pick up a phone call local pastor say hey we're homeless it's our fault we're not coming in for money we're coming in for some leadership and I as a young dad husband I need some guidance pastor and let that pastor counsel you as a man and counsel you guys in your marriage and let's lead you back into putting putting together a solid plan and I'll put you in Financial Peace University in the area there but if that's all you do it's not going to work because there's a lot more going on here than just a financial issue or to your financial problems are the symptom of all the crazy going on in your life and man you got to sweep the crazy out of the corners over there that's what's that's what's overdue so if you do that you'll see this turn around but hold on Kelly I'll pick up and we'll get you signed up for Financial Peace University and we'll try to figure out what we can do from there so hey thank you for the call are you Jessica hi Dave how are you better than I deserve what's up all right so you want an offer years but and I've read the Total Money Makeover book my husband is not a fan I have to put that out there first but we have some serious debt and it's all you don't loan that from my husband going to law school and so right now we are in an income based repayment plan which so we haven't really been worried about this debt because after all after like 20 or 25 years it'll be forgiven quote-unquote but I happen to look at one of the balance statements a cop like a few weeks ago and it's gone from 100 100 and 90 thousand and still on debt to 250,000 and student loan debt and so because of the interest and so I'm kind of I'm starting to panic because I just mmm sorry I don't know how to get out of it [Music] what's your household very okay what's your household income my husband he makes ninety thousand a year and when your service you know we I was going to say you know we bought into this sort of idea that a lawyer is gonna make a lot of money and so it wasn't a big deal to take the school loans out but he's basically he started working public right out of law school and then you know his and his salaries increased over the last four years about sixty grand but it's still obviously not gonna put a dent in the school loan issue so how old is he 35 35 so when you say he's not a fan you mean he's not a fan of getting out of debt it's not that he's yeah I'm not sure I don't know exactly why he he doesn't care for your program it's not the getting out of debt part I think he doesn't want to think about the school loan and I don't think he wants to I think part of our problem is that we don't know what to do about it and so we see beans and rice like I've cut our budget because I do listen and so I've cut our budget down and we don't have cable we don't have a lot of the extras or cell phone bill is like less than $80 a month for both of us because his work pays part of his and I mean so I tried to cut down in all of the areas that I can and you know in food and all those things I mean which are not you what you're not saving money and you're not paying extra on the debt so you're not doing a written exactly you're not doing a written plan or every dollar you're just cutting stuff I'm cutting stuff this is the first month because of I looked at it a few months ago notes there are a few weeks ago in the store listening to you again this is the first month where I've really done the budget out so that we're gonna have and we have about eleven hundred dollars extra a month after all of our bills are paid that's do you have so the school loans and then we we've had we've had a camper for a few years so that we host like thirteen just under fourteen thousand on that and then we had bought a truck last year to pull the camper and then we owe thirty eight thousand on that but we don't have any credit card debt or anything like that but so you just guys you know I know you're scared but you just keep doing stupid stuff well yeah because you did you know so I'm hopeless about getting out of debt and so I'm not gonna willing to listen to anybody I'm putting words in his mouth so let's go by $38,000 truck to pull a camper Wow Wow well part of the thing was I wanted to sell our house last year I actually wanted to live in a camper we homeschool and I wanted to be able to you know rode school and kind of do some not stuff so the idea that we was that we were gonna sell the house and then we were gonna we were gonna live in the camper and then that all changed because he wasn't ready to do that but we had we bought the truck in anticipation of that so yeah we're not the I feel like we're smart people but financially not doing super smart things and then we bought a new house dispositive because we sold our house but there's a lot there's a lot you guys can't get on the same page and so depending on whether he wants to slap his foot down or not you guys are lurching back and forth from stupid thing to stupid thing because you don't have do not have it do not have a clear goal and you are not relationally on the same page on any of these decisions and it's causing it's causing them to multiply the problem instead of doing oil boom you need to identify a clear concise goal that the two of you are willing to sacrifice to get to and that means sell the truck and sell the camper and it's the house getting equity in it it probably has a little bit of equity in it but it's from you know we just bought it in August so yeah I mean yeah and then we're gonna get on a tight budget and we're not going out to eat we're not going on vacation when we begin to attack this and as his income goes up it's probably a five-year plan to pay off $150,000 for the student loan debt but until you get rid of this it's not going to do anything to get worse because the income-based always goes with negative amortization which means that the interest is higher than the payments you're paying so you're going backwards and exactly just it'sit's financial suicide and yep and the fact that you cannot seem to get on same page and i don't know i'm i don't know whether i'm hearing fear from him or arrogance from him or maybe both but the way you're describing the decision-making the way you all interact it's not healthy and so you guys got some work to do on that to get on the same page i really can't help you unless both of you want to do something because what you you can't cut cable and fix this right you can't not go to starbucks and fix this this is gonna require a Hercule it's a huge mess and it's are gonna require a unified approach between the two of you to be able to win financially because you know when one of you goes and makes a decision then the other one grabs the we own course corrects you're jumping back and forth from stupid is stupid and really magnifying this mess I'm sorry for you I know you're scared but I'm I mean the fact that you guys can't sit and have a good conversation and come to a good conclusion to the point that you're you know on a national radio show crying tells me something about y'all's relationship and that that's scaring ya that's scaring me so the two of you need to work on that i I'm gonna send you to marriage counseling first is what I'm gonna do and when you get back from that if you want to go through Financial Peace University Kelly you Kelly's going to pick up she'll get your contact information and you can contact her at that point and then I will be happy to pay for you to go through Financial Peace University but I don't want you to go into Financial Peace University by yourself because you're gonna end up divorcing this guy if you do and that's and I don't want to cause that that's not that's not where I wanna go because you're gonna start having real firm knowledge based opinions and and he's not gonna play that for that this has got it he's got to be in on the idea and you guys got have to have a unified front on where you're going with this it's the only way it's gonna work for you so you need to sit down with your pastor and start working on some of these relationship issues to where he's as a good husband he should be a whole lot more concerned about how scared you are than he is and willing to do something about it if there was something I could do for Sharon and she was this scared 100% of time I'm gonna do it and and you know you truthfully you've got a right to be afraid because this is a pretty sizable mess and doing nothing about it is not gonna bring you to a good place so I'm so sorry you're facing this but hold on and Kelly will pick up she'll take your information then if you guys come back from marriage counseling and you want to go to FPU we will pay for it I do not want you going by yourself though that would be an unhealthy thing for you guys right now brian is with us in Sioux Falls South Dakota hey Brian how are you I'm doing great Dave how's your day better than I deserve what's up so I have a question that's listened for 12 years your guidance has actually enabled me to ask I am 26 years old recently invented a new electrical wall place for hiding graduate sensor wires and I'm about to retire congratulations big dog well done man that's awesome so so you invented this thing and you've sold it for a bazillion dollars so I actually sold it with a forty thousand mile road trip listening to your show all the way across the country for a year destroying door-to-door and it's now nationwide distributors and it is taking off right in itself okay and so well nothing runs itself so you've built a company or you've sold the item to a company or how's it being run so I am still dying at part-time basically coordinating voices between my distributors and my suppliers but my workload has drastically dropped below the 40-hour week mark Wow good for you okay and so III have no buy of no okay so what's your question we've done very very well obviously oh it's all day because of you ends everything's been cash flowed you know we're just as a design engineer and gettable for twenty you know two thousand dollars for a lawyer four months I was able to cash flow and just did that till I got ready to launch so what that financial guidance has allowed me to do is I'm still single how do I approach any eligible girl I meet and what do I tell her about my income hmm well that's interesting because you don't want to be a target is what you're saying for the wrong exactly you don't need a gold-digger we used to call them in the old days Wow well my son is 25 and he kind of has the same problem because he's my son right he didn't have any more money because I'm not dead but someday he's gonna be in really good shape you know so you know and he and I have talked about this a time or two but it's not ever really been a problem I think the healthier you are personally as an emotionally and spiritually the more normal you are in terms of I don't mean normal in a bad way but I mean you're just a regular person but if you're whole you're not needy emotionally you've not got some kind of weird ego thing going on which I don't hear and talking to you you just sound like a guy who came up with a great I didn't worked his butt off to me that's what it sounds like and so just be that guy and you know do you have any family in your life yep that one brother and my parents still around okay cool I would use them as a filter with young ladies that your that you're seeing and just to have other people look over your shoulder in case you've got a blind spot for one and they see things and give them permission to speak to you about it and go you know if you think somebody's after me for the wrong reasons speak up okay and go ahead and just say that out loud Daniel has two sisters and I can promise you they're filters you can't pass the sister mafia your big time you know so that happens you know and but I think the more hole you are spiritually the more hole you are emotionally mental health wise the more you're going to just naturally repel those kinds of people I meet for instance guys who go through a midlife crisis and you know you know marry the supposed trophy wife right the second wife that's after money kind of thing and most the time it's those guys just aren't very sure themselves as men and so they attract that you know they need they need arm-candy to feel good about themselves and you're not just don't be that guy you know you're looking for someone you're looking for somebody's beautiful on the inside yeah and by the way it's a plus if they are on the outside but I mean it's they're beautiful on the inside and and you're just gonna take your time and then of course where you're meeting people matters because you know we're do quality people hang out and that's where you need to be hanging out but as far as when to disclose the net worth I think you do that or your income or those kinds of things the fact that you've become wealthy later rather than sooner but certainly you don't want to spring it on someone but you know after you're engaged that would be weird you wouldn't want to do it but but you know you don't go out the first date and start spouting off about it you're gonna attract the wrong kind of people and I would be pretty secretive about it not we're not in a weird way but I just wouldn't live a real flashy lifestyle that that you know Daniel drives a pickup with about a hundred thousand miles on it he doesn't he didn't have to but he driving in one stride probably but he does very well on his own as my son as an example so you know you can just do whatever and that way you're not putting off signals that that that that there's wealth here but then yeah the more serious you get the more you begin to unpack it and I would just begin with some other money conversations and make sure those go well and that the relationship continues before I got into that so you know it's certainly not a first date thing and it's certainly long before engagement but somewhere along though you long there you just start talking about work ethic and saving and how they feel about wealth and how they feel about that kind of stuff and so now let me ask you this is is this over ten million dollars so this has a market potential about forty three million a year that we're currently extracting only about one percent of so you're making about the lobby right right in the world so you're making four or five hundred thousand a year already yes net yes okay and that's what that has just started yep so we are I'm very much in the baby stages where I'm used to my 80k a year engineering sorry and I pulled my friends around me if you see me change yell at me and be very honest because I don't want to change from the young conservative Midwestern Christian I started with I don't want to become a different person just because I now can be yeah well you need to be a different person but you don't necessarily need to show it all yeah you need to be you need to be capable of managing more and that's gonna be different you know it's a different thing making 400 then it is making 80 so I well here's the thing I do not recommend prenups in normal situations but this is not a normal situation and so because you're probably going to have a multi-million dollar net worth before you're married is what it sends to me like I mean and so you probably do want a prenup in those cases are you at least need to consider it and it's not because she's weird or you're weird it's because when there's that much money around weird can just show up in the form of her mother or her aunt or something like that you know and then the influences start moving and it it it negates their influence when there's a pre-done agreement now again I don't believe in prenups in normal situations but where there's extreme situations I do recommend them Candice is with us in st. Louis I Candace how are you hi baby Ramsey how are you better than I deserve what's up I am in $200,000 and that student loans I haven't even finished college right now I am working a minimum job I mean minimum wage job and I'm just trying to get a hold of my life right now so I'm just trying to get some guidance at this point what were you doing going $200,000 in debt well I was going school for filming video and at first I was going for interior designed and I transferred to a different school for filming video so that's pretty much the schools that I revoke that I was going to were out of state good laurels yeah and I'm not they're not bother you that you were running up that much dad I mean how to choose that how do you Ramona I went to school right out of high school and my parents they didn't know much about you know financing or at least they didn't teach me anything about it they just told me that I'll have these student loans and I had to pay back and I really wasn't conscious of you know student loans in that sense so how much do you like before you graduate I have only like a year left and I want to go back to school to get my degree Yeah right now I just want to at least try to take the big chunk out of the student loans at least a little bit of it yeah well you don't you know you're not I'll do that make a minimum wage obviously you're bad you're barely eating making it how old are you I'm 28 this is another thing that I am working on so I am working on a movie and I'm putting my money that work into the movie into the movie and I also have sponsorships that's helping to fund the movie and I also have a partnership as well and so I'm just taking a leap of faith that this movie will bring a substantial amount of money what makes you think that um it's a faith in I believe the storyline it's a good storyline and it's a good content to the cover I mean do you know anything about distributing a movie and monetizing it well this is the thing I mean it's independent movie and I know that my partner he is going to help you know that any of the funds that we need in order to get it to where we need to go basically you know he just basically his faith into my project that's that's how ok I want to see you live your dream and I want to see the movie be produced and and get out there but I'm also duty-bound as your old ugly uncle to tell you the truth and that is is that you have a pattern since you're 20 years old of entering into things and not carrying what they cost and not knowing what you're getting into I mean the movie business is a rough-and-tumble business independence that the independent movies they go out there and make big money are almost none right you're got to be aware of that yeah I'm aware I'm totally aware of oh you can't you know you can't listen I'm a person of faith but there's there's faith and then there's just dreaming and so I want you to have a solid business plan by which your faith is executed and my partner is going to put some money into it and get it where it needs to go that's not a business plan in the movie so yeah movies get made every day that nobody sees that's true and lots of independent movies get made every day that nobody sees and I'm ok with you working on your dream but you you've got to start entering into things whether it's your continuation of your education whether it's the time your bending on this movie the money you're spending on this movie or whatever it is you've got to start entering into things with your eyes more open and just going oh we're just going to start this and it'll all work out because maybe it hasn't been working out and if you submit let's say you let's say you spend two years on this movie and you get zip out of it oh no I'm not spending two years go ahead but I mean that that's you know you've got to have a an understanding of the behind the scenes part of how a movie gets launched and how it turns into money that you don't have today otherwise you can't spend your time on it and because it's not dreaming more it's it becomes a nightmare like you're going to school it was your parents dream for you to go school but nobody thought about what you were spending on that schooling and so you've gotten yourself in an absurd scenario with $200,000 in student loan debt working a minimum-wage job it's just a horrible place to be for you darling I just feel so bad for you so I want you to start things in your life that you can see in detail how they can occur and that is faith - that's wisdom is what it is and wisdom goes with faith and so step by step by step how am I going to get my career rolling actually make some money a high probability of making some money not one shot in the dark which is really what a movie is it's one shot in the dark and I don't mind you working on that but that probably ought to be your side gig while you work on something else that makes you some money and you get over there finish your degree and then you get out there making 50 60 80 100 1200 and 50,000 you know you get yourself a career track going kiddo so you can get this mess cleaned up and you can live a life because right now you've got this this monstrous oppression over the top of your head of this debt I'm so sad for you I wish I could just wave a wand and make it go away but what I want to hear you what I want you to hear and I want you to hear it me loving you and not saying I'm not a dream killer I'm not a dream stealer but I am somebody that tries to prevent nightmares from occurring and right now you got a nightmarish occurrence with a student loan debt and if you don't develop a detailed plan on how this movie turns into money and you keep working on it you're entering into an another nightmare so you need to have a pattern where you what Stephen Covey said in the books the seven Habits of Highly Effective People is you you begin with the end in mind and it's not just I'm gonna make this movie and I have faith it's gonna make me a bazillion dollars that those are words that that indicate you don't know what you're doing and you need to go find what you're doing and that's that's when you put wisdom and faith together and as you start doing those things you're gonna see some differences I'm not trying to hurt your feelings and it's not my goal here I'm trying to love you well kiddo while you're here on the air with me so I want you to go through our class Financial Peace University since I picked on you and I picked on you for your own good but I want you to go through the nine week class I will pay for it I'm gonna give it to you for free because you need some good people in your life to gather around you and help you walk through this that can see the end in mind with you as far as the this being this debt and getting your money under control and really getting your career on track too so I'll tell you also Kelly when we pick up and you give her a Financial Peace University also give her the book start and Candice I want you to read that book as soon as it comes in the mail once you sit down that day and read that book it won't take you that long it's a quick read and it'll really help you get your arms around what I'm talking about where you lay out a plan a roadmap to go towards being awesome and I want you to be awesome I want you to win but um you know you have to in that book you know start takes you through that roadmap that's what it does and it'll help you do that so hang on Kelly I'll pick up and we'll get you in Financial Peace University and get you that book and if I can help you all your fighting through all this you call me I'll walk with you I'm on your team I'm not here to kill your dreams I'm here to keep from turning keep them from turning into nightmares hey guys thanks for watching if you enjoyed this video click the subscribe button to get the latest content and check out these other great clips from the show [Music] you [Music]
