Top 10 Unbelievable Moments On The Ramsey Show (vol 2)

[Music] cory is in little rock hi corey welcome to the ramsay show what's up hi gay how are you better than i deserve how can we help my name is corey um i'm 32 and i my boss just passed away a couple weeks ago and so he left me some money and so i'm just trying to really figure out what i'm supposed to do like my dad has told me what i need to do but it's just it's a lot going on and i'm just trying to because i don't have a job now since my boss passed away but boss left you money in his will yes wow that's an unusual arrangement i was his personal assistant for eight years okay yeah so he he did um he was an oil contractor and so i did all his scheduling everything i was as he used to call me his go-to go-to gal all the time so i mean i just kept up with all his books and everything that he needed done and so after i knew he didn't have he didn't have family then he did he did okay so his wife is the one that actually called me and let me know that i was left something oh okay so he didn't leave everything to you no no no no no no i'm just trying it's just an unusual story it's a wonderful story but i'm trying to understand so the uh how much did he leave you 1.25 million dollars yes wow oh my god i i couldn't vote i couldn't believe what i mean what was the old guy worth a billion or something uh he he he he has a lot i mean several properties i've helped him manage his properties he would take me on trips with him and his family my kids he took care of my kids i mean wow he was an amazing person wow so are you married no okay how old are your kiddos i have a 15-year-old a four-year-old a three-year-old and 11 month old what was your income before before you lost your job i was making 65 okay 65 000 a year 1.25 million wow and i was pretty much living paycheck to paycheck doing that i mean i shouldn't have but i mean my kids are i'm doing it on my own so yeah so do you have any debt currently any consumer yes i have um student loans and i have about forty thousand dollars in student loans um we're renting an apartment so just month by month that's twelve hundred dollars for our rent and then my car my mom gave me um her car so i have a 2006 honda odyssey museum right well you're very wise you sound a little bit overwhelmed by this a little bit scared my dad suggested that i because my boss was very flexible with my went because he knew i had kids and everything so it was a lot i could work from home doing calls calls and everything like that i could do a lot of stuff from home but now i don't think if i get another job i will have that and it's kind of a viewpoint my dad was looking at so he was thinking like maybe if i take a break until my youngest who's 11 month old starts kindergarten because right now it would be like daycare for all of them well minus my 15 year old it would be daycare for all of them and he doesn't think that it would be wise for me to go back to work just yet and just use the money i don't i don't know okay all right well what what i would suggest you do is that you build a um let me kind of pan back let's just zoom back for a second from worrying about uh what we're doing tomorrow overall someone just handed you 1.25 million dollars to manage that's your new job and you don't know how to do it okay is that right yes that's why you call me yeah and that doesn't make you bad it doesn't make you bad it's just that you've never managed 1.2 million dollars before right no definitely not so what you do when you have a responsibility that large which is what this is it's not a woohoo i hit the lottery moment and i don't hear that in your voice by the way i hear a little bit of fear a little bit of grief still from your friend passing away a little bit of shock and awe which i have in my voice that you got this much money from your employer that's pretty cool and uh so here's what i suggest that people do you need to a number one move slowly okay if you feel urgency or someone pushing you stop okay because where may people make mistakes when they don't know what they're doing is they go too fast let's pretend you're driving a car for the very first time i took my kid out in the church parking lot with the jeep and the straight shift to teach them how to do the strike drive and to do the straight shift the first rule is don't even change gears let's just figure out and move slowly get in trouble stop right and that's what you're going to do here because it's something you've never done before okay second rule is the bible says in the multitude of counsel there is safety so i want you to build your own advisory group your own board of directors not to tell you what to do but to advise you and teach you and then you decide what to do okay you got a pencil yes you ready to write okay first thing you need is you need an investment advisor click smart vester at dot ramseysolutions.com you can find one that we suggest the second thing you need is a tax advisor click tax elp ramsey solutions dot com and find one that you like the third thing that you need is sometime in the next year i suspect you're probably going to buy a home and pay cash for it an inexpensive home under two hundred thousand dollars okay and you're going to need a good real estate agent that's your third person on your board on your advisory board again we've got elps that can sit down with you and help you with that you need to make sure you have the right kinds of insurance in place so you need an insurance health insurance anymore there you go you need insurance in place and you again we've got elps to help you with insurance we're not in any of these businesses but we've got people set up to where you can form your advisory board and their goal is not to tell you what to do and your goal is not to hire a babysitter you're a grown woman so your goal is to gather information from advisors and by which you go slow enough that you learn and then you make the decisions okay and i think you can buy a home for cash and invest some of this and not have to go back to work okay i can do like my dad said yep but it's not it's not by using the money it's by investing the money and using the money that the investment creates okay we're not going to use any of the money we're going to put it in an investment and it throws off an income for you to live on okay with your investment advisor and you're going to not need a lot of income because your house is going to be paid for and your car is going to be paid for you're not going to have any debt and you're going to be on a budget okay because like i said i was paycheck to paycheck you're not going to live paycheck to paycheck anymore you're just going to tell every dollar what it's going to do that's coming in you're gonna have more dollars than you used to have okay and i want you to go through ramsey plus go through financial peace university and learn how to handle money i'm gonna pay for that we're gonna give it to you for a year because you've got to get up on top of this thing or you're going to live with this horrible taste on the back of your tongue called regret move slowly and learn and put advisors in your corner so a couple things in the news we need to comment on john like last week we talked about the government uh basically states attorneys general several of them banded together and sued navient for what it may be one of the largest settlements in u.s history navient being required to settle for 1.83 billion dollars and 95 million of that was uh in restitution 1.7 billion dollars was in student loans that had to be forgiven because they were fraudulently made or fraudulently managed and we made a lot of fun with that and had a lot of fun with that because it's it's absolutely a bizarre thing that navient just got they got clocked i mean they got their clock cleaned one of the largest billions and billions and billions navien's forgiveness is now more than the federal government's forgiveness of student loans but they didn't do anything wrong but they didn't admit anything wrong now here's what's ridiculous though okay here's how people here's how the media and i swear some of you people so you would think that the headline would read navient is a fraudulent scumbag a bunch of trainees yes that rip people off and the government took them down instead cnn says more than 400 000 student loan borrowers will get debt relief from navient what a gift like navient is just a charitable organization thank you cnn for your misleading headline now when you read down in the cnn article it actually does say that they were sued yeah but you know the but the headline is like navient is a charitable organization oh you know we just thought we wanted to help because we're just those kind of people in bc navient plans to cancel some student loan borrowers loan debt i wonder who qualifies headline thanks that's awesome navi isn't that great they're just they're just the best people you're losing your mind out there america why would nbc and cnn do that you would think they would take the side of the consumer and go crooks caught on tape your loan might be forgiven because they were sued into oblivion you know instead it's like navient is going to help you it's like jeez man come on guys you finally get a real bad guy yeah and you don't even know what to do with him you finally get a bad guy that you didn't make up you got a real one and then we let it just roll off and then this is this is just so i'm there was a little uh a kids game on the internet uh uh an app or uh i don't even know what it was i think it was called animal farm okay and you would build your little farm is that right james it's called animal farm you remember what i'm talking about animal crossing is what we're hearing crossing or something like that it was like this empire thing or something but you built your farm and you you tilled the farm and you know you eventually you know and you made like pretend internet money that didn't exist that's what it is farmville that's what it was called and your kid could spend you know and then it got to where you could actually go on the site and give real money to get pretend money to buy a pretend pig i make my kids go outside and work a real garden but this is like this is like a virtual pig it's not a pig okay it's a virtual pig it's a pretend pig it doesn't really exist it exists only on the internet it's not there's no oinking no bacon gonna happen okay just a just a it's a virtual pig it's not real and you could build your whole farm out with this and it was all pretend and it was all virtual and it was a kid's game and so i run into this guy at an entree leadership event and i'm like it's him the guy that created the game no no the kid's 19 years old and his dad's with him and his older brother who's 26 is there and i'm like so what kind of a business you all got well we build um apps for farmville and i'm like you mean like add-on like you don't own farmville no but we we help people do better at their farm their pretend farm that's not really there and i'm like really and so how much do you make he goes well i made six million dollars last year on this app my dad works for me and so is my older brother he's 19. and i'm going crazy i thought it was the neatest thing that this young entrepreneur could figure out a way to sell an app on pigs that aren't really there and get real money and got real money and kids are paying them serious money to get started what is happening that's not really there well then it started occurring to me that we now have an entire probably two generations that are raised up with a screen in front of their face and to them what's on that screen is as real as the real thing when you say virtual to someone my age it means not real it's a projection it's sort of it's virtual it's not if i virtually made it i didn't make it okay if i if you know i didn't get there you know what i'm saying that's the literal definition only have a million dollars no you don't it means you don't and so um and so that that's uh that means you have maybe a little bit less but not quite you know you're not it's not real you're not there and so when you say virtual now to this entire two generations to them it's very real because they've lived their entire life in it and so when meta hits and now we're selling nfts and now walmart and nike and under armour are selling nfts and now you can walmart's setting up now for you to have your your pretend house it's not really there it's only on the internet like your little farmville and if you want to buy pretend drapes to go in your pretend house because that's what virtual means it means pretend not real it's not really there there's nothing there it's it's not real it's virtual and but now walmart is setting up appears to be venturing into the metaverse with plans to create its own cryptocurrency and collection of nfts the big box retailer filed several new trademarks last month that indicates its intent to make and sell virtual goods let me help you with this virtual goods is an actual oxymoron if it's a good it's not virtual and if it's virtual it's not a good a good this little coffee cup right here is an actual coffee cup it actually exists here's some of the goods including virtual electronics virtual home decorations virtual toys virtual sporting goods and so what we've got is the kids that grew up playing farmville are now going to virtually furnish their virtual house at walmart oh my gosh while they didn't pay off their student loans they don't even live in the real world they virtually live because it's safer in there inside that little box than it is out here with the with the crazy humans with real drapes that fall off real windows well and try hanging real drapes that'll help you get a divorce but yeah exactly just i mean but these drapes virtually hang themselves it's happening this is yeah yeah unless you have to hire alone is there not a psychological disorder at play here dude we we have i'm telling you it's escape man it's escaping to a fantasy world checking out of the challenges of our real world and we're going to a place where we can control the variables because we cannot do it in our real life that's exactly right and now we're spending money to do it real real real money for things that aren't really there there in case anyone's forgotten we're in not real money to the tune of what 20 25 trillion dollar like yeah well there's just so virtual that we're just moving none of it's real anymore but uh well your generation did that well that's true my generation did do that but in the last last 10 years we've doubled the uh you know 10-year look back thing that's going around yeah you doubled the uh the debt at the government level that's another discussion but oh my god this is so this is uh i i rarely speak saying i'm not saying it's not okay to play video games and if you want to spend some money on your video games or whatever that's fine but when you psychologically escape to another world to the point that you don't own real drapes but you bought grapes in your pretend house you got issues from electronic walmart darling it ain't real sounds like my aunt i don't even know what what do you say to this it's virtual it's virtually oh it's not real but it's so interesting because it's the kid made so much money i'm so enthralled with it but it's scary about what it means to about this generation cynthia is with us cynthia is in des moines iowa hi cynthia how are you hi dave doing great thanks for taking my call sure um i just have a quick question so i am on i am hoping to get onto baby step four really soon so my question is around baby step four um i'm wanting to contribute about 15 to my 401k right hoping like this next paycheck or possibly in february um but i'm noticing that the market is well it's on the toilet so should i really contribute at this time or should i skip it and move on to like something else or when i was a little kid my my mama would take us to a store called kmart yep and kmart would in the middle of the day run these little sails they called them blue light special blue light special they would turn on a blue light over the top of the whatever area and uh you could go over there and get you a coffee pot on sale or whatever that's what you're that's what we're having right now darling this is called a blue light special you need to buy water it's on sale buy while it's on sale okay so bye at the dip okay so you know why how old are you i'm 40-ish okay 48. own it own it i'm 61. i'm proud of it so there you go but the uh yeah so here's the thing uh uh in 20 years where do you think an average of companies that sound like this apple coca-cola mcdonald's boeing microsoft home depot and on average as a group now there'll be some one or two that fail but on average as a group an aggregate of that group 20 years from now are they going to be worth more or less well ideally more well not only ideally there would be that's what has always happened in history 100 of the time so far in the american stock market's history now obviously the world can fall apart and we can just blow this whole thing up called america but if anything stays similar to what it is 20 years from today it's going to be up and you will be glad that you bought in the cold winter of 2022 when the market was freezing to death and down because of whatever was going on out there i haven't even seen is something going on how far down is it i don't even look i dropped 500 points in one day the other day but it's just it's back and forth it's out of 30 000. 500 points used to be a lot it's not anymore but yeah yeah it's uh ukraine and uh and biden mumbling and they can't nobody here you know nobody's getting uh idea that he's going to do anything and so the market's just unstable geopolitical crap always destabilizes the market it always has i mean this little thing happens on the side of the world and all of a sudden because people just have this little black cloud following around on wall street just waiting for the next thing waiting on the next bad thing and then they're psychological as it can be but uh um bitcoins in half oh god who knew who knew that was going to happen and so anybody with investing wisdom of more than eight to ten years yeah yeah that's true but um yeah it's fairly fairly easy predictor but fairly you know easy predictor and this is just a you know it is a geopolitical driven it's not economic driven and it's not profits the profits of the companies involved have not changed so are they suddenly worth less right no they're so worth what they were worth it's just they're scared they might be down in the future because of war with russia or china or destabilization of the political environment all that kind of crap so do i think all that's going to happen nope i think there's going to be problems and there's going to be times when there's not problems and the market's going to go up the market's going to go down and i only people get hurt on a roller coaster are those that jump off in the middle of the ride here's the thing if you provide service uh to one person you're gonna make one dollar or one amount of money if you pre provide service to millions of people you're gonna make millions of dollars and you didn't steal any of it evil rich people is a bunch of crap it's a lie here's an example my friend mark cuban and um i can actually dial mark's phone number and he actually will answer we have very short conversations because he and i are just alike we don't talk on the phone hey what see that's it yeah yeah done no i email him sometimes and he emails me back no yep or maybe later we'll talk later or something you know that kind of stuff so big big deep in in-depth relationship but uh um but he has uh to to his credit billionaire this from uh this is on npr oh god a billionaire investor and dallas mavericks owner mark cuban has launched an online pharmacy for generic drugs that promises steep discounts over traditional distributors the mark cuban cost plus drug company announced opening its online pharmacy wednesday the pharmacy says it will bypass the healthcare industry middlemen and help consumers avoid high drug prices by charging manufacturers prices plus a flat 15 percent markup and pharmacist fee all drugs are priced at cost plus 15 percent sign up and share your thoughts and experiences with us cuban tweeted last week cuban's pharmacy says it will negotiate drug prices directly with manufacturers to lower its costs for consumers one drug for diabetes patients sells for 3.90 for a 30-day supply compared for retail at 20 a thirty count of um i can't pronounce it which is used to treat leukemia and other cancers goes for as low as seventeen dollars and ten cents at cuban's pharmacy compared to two thousand five hundred dollars instead of seventeen 17 at other pharmacies now cuban's gonna make another billion doing this and he will have helped millions and millions of people get drugs for seventeen dollars instead of twenty five hundred dollars what's evil about this you literally have a billionaire here that that by looking at this article looks like he is attempting to provide a public good somebody who says i've got the money and resources i'm sick of people i know who have lesser less less economic uh buying power than i do not being able to afford their drug i'm solving this problem and i'm gonna make a lot of money why why is that i don't understand the opposing force there yeah it's it's um if i'm happy you can't be because you took up because i took up all the happiness yeah it's like there's a something like there's a game like it's a fixed joy yeah it's a fixed pie if you make a bunch of money that means someone else didn't that's not how money works oh man rabbi lapin says money is more like candles than cake if you get a big slice of cake that means someone else gets a smaller slice no that's not how money works so it's more like candles when you light a candle your candle is not diminished and you light another candle and you light another candle and you light another counter and then you got christmas eve service oh huh so this is mark cubans here's a here's something that just happened just a few minutes ago um i went and did a talk with a guy who owns a couple of car dealerships in kentucky and met with his team around the tornado right he was right on the tornado he asked me to come up there talk about crisis talk about stuff talk about trauma talk about trauma how do we move past this and his first time his group got back together and as a part of that conversation i was asking individual people what are they what's what's something that's real and tangible that's going on in your life right now somebody stood up and talked about a problem with their home they don't have a home yeah and they just bought a new home and then a sale of their old home fell through it was just a mess and this owner quietly said he called his wife and said i'm gonna buy a house today and i he didn't elaborate further ended up buying that house and said i'm gonna find something good to do with this house and thought i'll flip it whatever then somebody in this and when the tornadoes came through he was able to provide housing for a family that's been displaced and now has the idea of i'm gonna keep this thing and definitely i can just use this to serve because people need a place to stay whether it's two months five months one year and now i've got an opportunity to help them and that's a 30-year game of somebody who's been stewarding their money taking care of their people has got a heart of a servant and now has the resources to say i'm going to help you and i'm going to help them i'm going to serve my community and no one will ever know this happened because he's not he's not a billionaire mark cuban he's just owns a couple of car dealerships in a small community that just got wiped out by tornadoes and he's able to help right he didn't have to call the government he doesn't have to call any cert he's able to help and the those stories go untold day after day minute by minute all across this country man so the data actually says that when your friend or family member says rich people are evil the data actually says that your friend or relative is a but they're wrong that's what the data says it says that guy's a he's just wrong and he doesn't know what he's talking about there's no first-hand knowledge he has no data to back this up because the actual data says that there are no more evil people among rich people than there are among poor people turns out there's jerks that have money and there's jerks that don't and there's good people that have money and good people that don't this is the ramsay show janelle is in cleveland hi janelle welcome to the ramsay show hi dave hi george can you hear me okay absolutely what's up um my husband and i are 65 and our kids are 32 and and i don't know when to tell them how much money we have now now [Music] um well the only reason i'm hesitating is because it's 1.5 million yeah so are they are they are they misbehaving oh no no why do you why do you think this knowledge will bring harm um probably the way i grew up i didn't know anything about my parents finances until i was gosh probably my dad died 55 maybe i mean my parents just never talked about it i never asked them right um yeah lots of parents don't talk about money or sex and then when their children grow up they're surprised to find out they had both well they're both married and my daughter is having a baby in about three days so i think she knows about sex one down one to go i wasn't talking about her sex i was talking about yours but yeah i know oh my gosh yeah i i think you sit down now you know when i had this conversation with ours they were just coming out of college i didn't want them i wanted them to have the maturity to be able to handle the discussion the emotional and the spiritual maturity and uh we're a family of faith and so the conversation started with this as for me and my house we serve the lord and so the information i'm getting ready to explain to you is not uh it is not you hitting the lottery because you are not inheriting the money you're inheriting the responsibility to manage the money for god mm-hmm and that's how we started the discussion and that's still how we have the discussion to this day they've yet to inherit any money but but they know they know what our wealth is in detail and they know exactly what's going to happen to every penny of it uh we have a big meeting once a year with our leadership team at our office and with our kids and we go over the real every piece of real estate we go over uh you know any of the wealth that is there and exactly how the wheel remind everybody how the wheels and the trusts all work because it's kind of complicated and um you know we just have a review of this and this is a transaction so long ago they got past the emotions of feeling like they hit the lottery well i guess i'm wondering why why why do i what's the purpose in it because you can teach them to have the proper spiritual and financial stance on this while you're alive otherwise you don't know what the reaction is going to be and if you get a negative reaction you may want to adjust some of your inheritance um okay because we i just yeah we don't leave peop money to people in our family if they're misbehaving because we don't want to finance misbehavior with god's money oh no no i wouldn't do that i know but how about their how about their son-in-laws or our son-in-law same thing listen if it's going to affect the if the information that this money is there is going to affect them how much more do you think the money is going to actually affect them when it comes out of left field and there's no time to emotionally process it oh by the way we're also processing the death of a loved one at the same time hmm so the so you think the son-in-law should be included in absolutely they are at my house because they may they're they're they're family they're not necessarily going to actually personally get the money but their spouse is and so you dadgum right and you get to speak to all of them about what this means to you and and how we you think they ought to view this and that we're not going to allow you to feel like you can put co push the car up into neutral because this is coming you know we can have all kinds of good discussions there's all kinds of teachable moments so george the producer james just handed us an article it's juicy it's a juicy one well okay this pisses me off all right because the um consumer financial protection bureau brought to you by elizabeth warren that's where it came from was put in place to protect the consumer they were put in charge of a piece of legislation that's been in place for 30 or 40 years called the federal fair debt collection practices act there's federal law that dictates how collectors have to behave or they're in violation of federal law when they're trying to collect from you the consumer financial protection bureau is in charge of the federal debt fair debt collection practices act regulations and uh fines and you know you know basically protecting the consumer so what did they do under this administration decided to help out the collectors instead of the consumer so they just new rules approved by the consumer financial protection bureau that took effect this is from npr that took effect on tuesday dictate how collection agencies can email or text people as well as message them on social media to collect unpaid debts so now they can hassle you on twitter your facebook account text you and email you what part of protection at the bureau did they not get they just unleashed the hounds on the consumer financial protection bureau you need to read the title of the place you work good god i thought it was bad enough when my mom joined facebook and now the collectors are on there too the whole gang you can't stop everyone's watching you george you know a way to fix this is don't be on facebook good luck well it's easier now everyone's going you know they're on instagram i have to have something like i got where i pay people to do this stuff because i can't stand it but this is what's crazy it says they can attempt to join your network by sending you a friend request and they must give you the option to opt out of being contacted online and any messages they send do have to be private so they're not going to go posting on your public page dave don't worry yeah that would be a violation of privacy act a whole another act the rules are really disappointing and concerning in a number of ways says april nuhoff a staff attorney for the national consumer law center hello april that's an understatement uh yeah disappointing no this is just ridiculous this is what we in the south call we just let the fox in the hen house that's a good saying i like that one here's what's crazy chomp chomp we're going to see so much spam come out of this it says allowing debt collectors to email text and use social media to contact consumers also gives criminals a new avenue to try to swindle people out of their money a practice kanuhov expects to increase in the future all right i get a bunch of crap on my apple phone updates that i don't want and they force it on me and i have to go in and turn it off or turn it on and so that people aren't watching me and all this other bull crap all these things they do with this technology i'm getting just paranoid but they're gonna have to put a thing on the apple phone oh yeah block collector text select on or off and maybe you know there you go that'll work so um i did just somebody just show me the damn i'm so technology stu you're gonna look at me because you know i'm stupid but um yeah you can turn off uh not the phone doesn't ring if it's an unrecognized number because the 73 000 calls i get a year on my warranty for my car that i need to buy which is hilarious you're calling dave ramsey's phone i mean come on but um yeah i mean all those are blocked now and so automatically they don't it doesn't ring my phone so i can we're going to have that selection of collectors apple's gonna have to protect us because the protection bureau won't protect us oh boy and you know the weird thing about sliding into the dms here on on your instagram account if the only people sliding into the dms are the collectors that's a sad life we gotta pay off this debt get rid of it leave them on red you can't ghost these people they're going to be after you that sums it up travis is going to start the year off from asheville north carolina travis welcome to the ramsay show hey how you guys doing today better than we deserve man what's up i have a question for you we are in baby step six and i made a purchase last month that i've been losing some sleep about because i can't decide if i did the right thing and i tried calling him last month and you all were super busy so uh i'm getting through today and either gonna get a tongue lashing or some reassurance i'm not sure but i have a question about a vehicle i bought okay um so i was looking for a truck for months like two or three months i saved up cash and with this crazy market um everything that i was seeing just seemed really high for a used truck so i kept looking around and i finally came across a deal a couple hours for me on the truck that i wanted and it was actually a new truck that was going for about three grand less than the used trucks of the same year like i was looking at 2019 2020 gmc sierras and they're going for around 55 grand for the for the truck that i wanted and i came across a 2021 that was brand new with factory rebates that had it down to about 52.5 and it had to make a quick move just because of this crazy market so long story short i did end up purchasing it even though it was new and i know that you know that's not what we do with the baby steps but i'm wondering what this crazy market and the price you know and the research that i did if if this did make sense or if i should look to maybe get rid of it and get into something cheaper well i have a rule i don't start the year with tongue license you caught him on a good day the first caller of the year we can't do it it's against one of the rules and so what so you pay 50 grand for a truck what do you make of your household income 150 okay and what's your net worth today about 200 okay all right and 50 000 of it is in the truck going down in value yes this is why we tell people not to buy new vehicles until you have a million dollars one-fourth of your net worth is going to be worth nothing in five years right that's the problem with buying new trucks i mean if you're worth a million dollars you can afford to lose 50 grand if you're worth 200 000 50 grand a lot of your life that's the only point so it's not a ton lashing it's just an observation man you're a grown man you make 150 000 a year you can go buy a truck if you don't go buy a truck we're not gonna be mad at you we'll still be friends okay so again no tongue lashings at the first year but you're right that's why we teach people not to yeah and if i was travis i would have looked at a car that was you know a few years older than that and that's where you are going to find something at a cheaper price point when you look at a 2021 versus the 2022 and the used car market right now i get that it's crazy but i think like you're saying dave this is just a huge percentage of his world that's tied up in this depreciating asset now i mean the thing is this you need to ask yourself when you're buying anything with wheels or a motor if i set fire to it without insurance after it finishes burning is my life changed dramatically when you lose 25 of your net worth if you set fire to it that's pretty dramatic you lose five percent of your net worth it's not dramatic it's a ratio thing for me you can do what you want to do but as long as you lean into depreciating assets being a large chunk of your world things losing value that are being a large chunk of your world then you're going to struggle with that and i did the exact same stuff travis i mean we've all done it but you knew better because you'd been taught and you just figured out a way to rationalize it well he was saying if he would call it i wouldn't lose sleep over it it's not going to cause you to go bankrupt i'm not going to sit here and shame you that's not the point the the point is the reason we teach not to buy a new car unless you're a millionaire is this exact reason and it ca you know it comes from all things when i got tongue lashed by my grandpa i mean he passed away now but um you know he worked 38 years at alcoa aluminum head cost accountant there in alcoa tennessee down the mountains east tennessee and i come wheeling up down there at 23 years old 24 years old with a million dollar net worth driving a jaguar and a bunch of real estate debt coming out my ears just before i'm going broke right and and uh i was all proud of my jaguar well grandpa from east tennessee didn't even know what jankwart was he's like what is his car and i told him and he's like shaking his head he was not impressed and he's like what'd you pay for that and i told him and he just spit and he just out of disgust yeah he said a truck over there didn't cost that and i'm like no that truck over costs 200 bucks you know and it's not a it's not a fine european automobile you know so i drove off all uh bothered that my grandpa was not impressed with my proud new purchase and uh of course when he passed away he had a million dollars in money markets um and so and the reason he did was he didn't put it all in things he goes i said well this is a great car so these things hold their value and he started laughing and he goes ain't nothing holds his valuable wheels on it boy i said what do you mean he goes well it holds its value he goes he goes so it's like an investment he goes my investments go up yours go down there's a problem with this formula you're using son did you go to college or what you know it's that kind of thing right one of these conversations with your grandpa right nothing like that whip my butt man oh my gosh today's question comes from laura in tennessee our family has been a dave ramsey family i always agreed with the quote expensive college is a rip-off idea and my older son is in community college now my younger son announced at age 7 that he wanted to become an economist and fix poverty and wealth inequality almost a decade later he still wants to become an economist he wants to go to harvard or wharton and feel strongly that going to such a school would help him develop connections that would allow him to advance his goals as jobs for economists are mostly appointed we can afford to pay his way but is it really worth 250 thousand dollars in tuition alone hmm there's a lot going on here i'm intrigued by it i'd personally this is my personal take i don't think it's worth two hundred and fifty thousand dollars to go be an economist for the connections but if they have the cash to do it and that's something they want to do for their son that's the decision they can make but personally if i'm if i'm mom and dad i'm going no we're not doing this okay this kid is obviously a child of great intellect and he's also a super nerd yeah seven years old he wanted two seven years old i want to be an economist and do away with wealth inequality what seven-year-old says that come on strange ones very smart ones yeah that's an unusual child and so uh in a good way maybe but maybe maybe um it sounds like you're 17. now the child is she said almost a decade later so he must be 17 close to college a decade so 16 years old okay let me help you with this at 16 years old you do not know what you're talking about you're so full of crap that it's unbelievable i want to go to harvard because i can make connections because economist jobs are all appointed horse crap you're 16. you do not know what you're talking about you don't know what you're talking about young child this is why you have parents thank god you need parents you need a keeper even if you're very smart and unusually bright young man who has had it focused since you were a child a little child but um so here's the thing there are economists in all parts of life um i have a friend who is one of the best known economists in the world he invented the laffer curve art laffer he has a phd from economics i believe it was cambridge if i remember i served in reagan's cabinet and he served on the in the trump cabinet as well wrote the last trump tax law is absolutely brilliant and made almost none of his money doing those things he instead manages wealth for others i'll just leave it at that and um like lots of wealth with bees on the end of it billions and so um and art's like 80 something years old now he's brilliant he's again he's a friend he's still a real shy in the area probably one of the best known economists on the planet that's alive at this moment in the top five anyway and so um he he would tell you that education is vital and education is important and he would tell you cambridge was worth the money uh because of the path that he ended up going on uh but i will tell you that that job there's only about three of those in the world and the rest of time the economist ends up working for a mutual fund company or the economist ends up working for a financial planning company or the economist ends up working for a large corporate entity that needs some economic predictions and models run out on their revenue projections and an economist and in all of those cases there's no roi on what you're talking about so these schools are not better schools and no they do not provide better connections they're just more famous let me also let me point out to you this here's an example of what i'm talking about wall street journal did a study a few years ago and 78 of the forbes i'm sorry 78 of the s p 500 the 500 largest publicly traded companies on the stock exchange 78 8 out of 10 of the ceos graduated from state schools i'll help you with that again of the largest 500 companies traded on the stock exchange 8 out of 10 ceos graduated from state schools they went to the university of fill in the state but dave they're missing out on the connections and harvard but they're the ceo of household name companies and by the way the cfos same situation the cos same situation the chief digital officers some of them didn't even graduate from college and so yes you can get a degree there but this idea that you the connections you make in college are going to open your doors and make you successful is as dumb as the idea that the degree is going to make you successful what makes you successful at the end of the day is you education is important it's even vital but where you get it and who you are connected to there is no data to back up this theory of where you went to school matters that these prestigious universities that there's an roi on them we cover a bunch of this in borrowed future i was just going to say this is all reminding me very heavily of the bard future documentary where we go into this and we talk about is is school worth it are degrees worth it what about trade schools and state schools versus the big name and what we found out was that there's there's really no correlation between success of hey i went to harvard or i went to a state school learn to play golf join a country club for a tenth of what you would pay at that school and go get a degree from a state school and you'll be better off and if this kid it really has the intellect that i think he has i think he can get scholarships they're going to be knocking at the door trying to get they can go for free that's fine but that isn't what she asked we can afford to pay is it really worth 250 000 no it's not worth a quarter of a million dollars no it's not no no but is he smart enough that he's gonna be just fine and maybe he could be an economist and love what he does sure yeah but i wouldn't pay a quarter million dollars for the pleasure of it yeah and uh it's uh um but don't just because your kid has an unusual proclivity for articulating his ideas at seven years old does not mean he actually knows what he's talking about to get poor 17 and sometimes parents get all enamored with their kids wishes and um this is why you're supposed to be parents and you know it's like i don't know i had one guy called me for missing he said my daughter told me she's going to this expensive school what am i going to do and i said well you messed up a long time ago because my daughter didn't tell me stuff i tell her stuff that's how that works so that's where we got confused we got confused how this works got confused as to who's in charge here by the way it's my money so um she's trying to make a decision you know reasonably and i'm and i'm not picking on your kid your kid's obviously a special child in a lot of good ways uh and that that's all fine but it does not mean he's wise and uh so his opinion about the connections is something he heard from somebody or read with an internet article this is the ramsay show brandy is with us in sacramento hi brandi welcome to the ramsey show hi dave it's so nice to talk to you you too what's up um so me and my husband plan on leaving california in five years when i can retire early from the state and start collecting my pension so we have sold two of our three homes and have that money just sitting in the bank and with interest rates expected to rise and inflation going through the roof where should we invest that money for the next five years we want to have it you know available when we're ready to buy out of state yeah but if it were me i would put a portion of it if not all of it in just a simple index fund an s p 500 fund okay now what that is is a fund that follows the stock market exactly it's not going to do better than the market or worse than the market it's going to be exactly following the market now not the dow jones industrial average but it's going to follow what the real market is doing the overall markets the top 500 stocks according to standard and poor and that's the snp 500 okay and so i do that when i'm parking money and uh it's a conservative mid-range mutual fund investment it's very predictable and it has no commissions on it so you're not going to get you don't you i don't mind paying a commission when i'm going long term but when i'm just sticking in there for a little while and i'll do that sometimes for a year or two years not even five but when you do it for five you're pretty safe because the market's track record over five year periods of time is very very good to make some money and you don't have to make much here to do better than the bank because the bank just doesn't pay anything yeah and the good news is you're investing basically in companies that are inflation meaning the the things that they make and that they provide are the prices are going up on them so they're reflected in your returns so that's what you call a hedge against inflation when you are investing in the things that are the elements of inflation that make sense yes it does so you know but now here's the thing you can what you ought to do is you ought to uh do a little bit of study on that and see what the track record is and say okay how many periods how many five year periods of the s p make money and how many lose money and you go oh whoa you know i could lose money yeah you could uh but what's the what's the likelihood based on that i don't know that number off the top of my head by the way um it's the vast majority make money though probably ninety percent of the five year periods make money but ten percent of the time you could lose money well based on that i don't wanna put it all in there i'm gonna put some in cds okay that's fine but cds are gonna pay you one two percent even if rates go up and uh the rates are not going to go up to the inflationary levels because we're sitting you know we may see some double-digit inflation and so if you're not making at least 10 percent on your money you're not going to be ahead of inflation follow me so it's you're taking the risk of inflation kicking your butt if you don't invest aggressively enough if you invest too aggressive you're taking the risk of actually losing the money does that make sense yes so that's that's why i do that's what i would do with it it's what i do with mine uh i just park it there and then any money that it makes you don't have any it hardly has any turnover ratio so there's hardly any taxes on it until you pull the money out and then if you did make some money and you pull the money out it'll be taxed at your capital gains rate rather than your ordinary income rate so it's even tax advantaged in that sense christina is with us in cedar rapids iowa hi christina how are you oh good how are you dave thanks for taking my call sure what's up um so i have a question for you um we recently paid off over 300 thousand dollars in student loans wow yeah christina yeah it took us about four years i'm a physician um and my question is i just had my third baby and i feel crazy saying this but i don't want to return to work um my husband has always been supportive and working kind of part-time jobs while taking care of the other kids and he just recently started a full-time job um at a bank and it's kind of a a trade they're training him while he's there and it would be a major pay cut for me to quit my job but um that's kind of what i'm feeling pulled to do and i just wanted to hear your thoughts on that wow what does that what what is he going to make at the bank when it's all when the smoke clears on the train and everything yeah so they're starting at his job as a credit analysis and he's kind of a junior credit analysis so his starting salary right now is 56 000 a year um and then they told him as soon as um he's kind of fully trained then um it would be in the 60 to 70 000 um would be like where he'd start at cool and what do you make now me um if i go back to work i'm making about 190 000 a year okay all right so we're dropping our income 120 000 bucks to make this move yeah um if you go from 190 to 70 i mean of course if you if you go back to work it'd actually be 260 because it'd be him making 70 plus your 190 but but you're out of debt and you're able to make it on 70 000 um yeah we um our only debt is our house um and our mortgage what we own it right now is about 95. we live in a kind of a smaller rural area 95 000 um we're in our mid-30s and our retirement we have about 230 000 in retirement um are you done with it or could you do telemedicine two days a week or go in one day a week i mean are you just completely burned i feel really burnt and it's really hard to give my all to my husband and my children when i always have that stress on me um we did talk about i have reached out to a couple um like the ceos at a few smaller rural hospitals about the possibility of maybe doing one or two days a week for them in the future maybe when the baby our baby gets to be a little older um but what have you got to do to keep your medical license intact i think i just have to maintain my continued medical education and my license which yeah my experience with doctors who have a picture in their head about well let me let's choose separate issues here one is um a mom who's like i want to go be with my kids that's that's that's noble great wonderful high support would never tell you not to do that absolutely awesome the other side that the doctors that i've worked with and known over the years are just quite frankly wired differently than the rest of us and the thing that drove them to go to med school and get through med school and to get through residency and rotations is uh there's just a different drive and i wonder i i've had several buddies who end up i'm gonna just go i'm gonna quit all this i'm gonna go do a small practice a couple years later they're back doing a night a week in the er just to get their blood pumping again right so i wonder if you've boxed yourself into an either or right now and maybe you need a break but that there's some other opportunities to split the difference here okay yeah i i don't care the money thing doesn't scare me what i'm thinking about is um if i were in your shoes the thing i would struggle with the most is not i you know yeah i want you to be with these kids that's what you want to do let's just let's lay that as the foundation of the whole discussion um but you have paid such a price of uh commitment and diligence to become a doctor and then as a doctor to pay off the 300 000 so you literally paid a price as well as the as the toll you have paid to go do nothing with it for the rest of your life seems extreme yeah i would agree with that and i think i think that's what's the hard thing yeah and i just i think you're going to struggle with that so i i just from uh you know i uh from the standpoint of that i'm going to stay engaged at a greatly at a 90 reduced level or or whatever after the child comes and after you you know take a normal maternity leave or whatever but like you said go hit the rule hospital for a day or two a week something anything uh or you know telemedicine like john suggested whatever it is you want to do but something to just keep um to stay a little bit engaged and the natural result of that is going to be 100 000 a year probably okay i mean you know that's that's your that's irrelevant because you're gonna make plenty of money but but um i you know some kind of part-time something that fits into your new life that you want to have with these kiddos but also allows you to um not just dust you know shake the dust off your feet from all of the the decade of work you've put into getting to where you are i'm sure they exist and they can write in and let me know i've never met a doctor who walked away and ended up staying away because they're that's why they i mean it takes such uh it's such an identity i'm a helper that's what i do it's hard to just walk away from that completely well there's just an intellectual and emotional commitment of time it's a stimulation like the whole thing yeah the whole thing so anyway yes i would quit uh doing what you're doing and so that you can be with your kids and yes i would try to find some uh greatly reduced middle ground uh that you can stand on because i think you'll be happier uh because your intellect is gonna require uh you know you're going from solving ultra high level problems high level thinking to can i have a snack can i have a snack can i have a snack and it's not that one is better than the other one is more noble than the other that's not the point the point is your brain is set up in a certain way now and it's it's um yeah you know a lot of moms of little ones uh while they want to be full-time moms they also want to have adult conversations with adults absolutely and need it and so that that's that's in the mix here so yeah that that's but yes i would quit don't quit doing what you're doing i wouldn't work the hours you're working i would not stay in the 190 position you don't have to you can make it on the 70 plus whatever little plus the other 70 that you bring in or whatever maybe you can match his now let's let's talk about the person who hasn't who's in that situation who hasn't put in the incredible work that christina put in to get that money paid off you're stuck you you gotta get yourself out of debt you gotta get yourself out of that because you're not in a position to like you can't lay under a three hundred thousand dollar blanket yes uh and wait it'll suffocate you and sleep you won't be able to sleep that's right and you won't be able to prosper your family won't be able to move forward so you you know you've dug a hole now you gotta get out right and then you can talk about doing what she's doing yeah but christina put in four years of grinding yes they've been getting they've been helping man they've been hitting hard good for you guys so well done very well done

Channel: The Ramsey Show Highlights

Views: 370,611

Keywords: the dave ramsey show, budget money debt cash, real estate, insurance, how to make money, dave ramsey, save, credit card, compound interest, buying house, buy, snowball, Top 10 Unbelievable Moments On The Ramsey Show (vol 2)

Id: RSJjJTmV9Ug

Length: 61min 53sec (3713 seconds)

Published: Mon Feb 07 2022