Whenever In Doubt, Budget It Out!

show you can be intentional about your character you can have money and a career you are the hero in your story [Music] live from the headquarters of ramsey solutions broadcasting from the dollar car rental studios it's the ramsey show where debt is dumb cash is king and the paid off home mortgage has taken the place of the bmw as the status symbol of choice i'm dave ramsey anthony o'neil number one best-selling author and ramsey personality is my co-host today here on the ramsey show as we take your questions about your life and your money we've done that now for about 25 years it's a free call and some say the advice is worth what you pay for it the phone number is triple eight eight two five five two two five this is god's and grandma's ways of handling money in a bygone era in this nation we used to call that common sense but now common sense is like having a superpower and we got plenty of it around here and we dish it out because this culture is sadly lacking in common sense in moral structure in just general ability to talk to each other and be human beings but the good news is we are here we are still here and we are not going anywhere last week we announced that um we are now the fifth show in podcast history we've been hovering around number four number five podcast in the world for quite a while we're now the fifth show to have one billion downloads of the show wow that's like a thousand million man listen that's wow that boggles my mind considering i couldn't even spell podcast a while back and now i are one so there you go one billion one of five shows to ever have that happen we've counted up over a half a billion dollars in debt free screams on the air we sure did have happened that we've been able to track which that means that at least 50 billion in that at least uh 10x that that never called in i mean think about if one per screen yes how many out there do we never meet never hear about you've got a it's a guesstimate but you have no idea right there's now about 12 million of you listening daily on the podcast and about just under 11 million of you listening on the radio and on youtube watching on youtube and so upward of 22 million of you out there today that blows this hillbilly's mind i have no idea if i if i had thought about that i'd just get nervous not really but uh congrats dave man you know what it is if you just keep doing the right thing a long long time yes sir you're gonna piss some people off yep and if you keep doing the right thing a long long time you're gonna help a whole lot of people yeah and the whole lot of people you help are gonna far offset the few people that you piss off so and pissing people off is a bit of a gift i have so and here's the thing dave if everyone likes everything you're doing you're doing nothing at all if everyone likes everything that you're doing then you're doing nothing at all that's a success principle right there only one way to avoid criticism aristotle said it say nothing do nothing and be nothing i said look at you man i love it well that's the kind of stuff you're going to get around here grandma's common sense and grandma's head hand up the back side of your head if you're goofing off that's uh that's what grandma did at my house she'd cuff us you're everyone hit you in the back of the head i mean my mom just did that the other day [Laughter] what'd you do hey you didn't take your plate to the sink hey listen man i got 12 million people listening right now kelly's staring at me so i'm ah i'm gonna keep that between me and my mother well you brought it up i didn't bring it up it's full disclosure here now you know the only way you can pop somebody in the back of the head is if you got your arm around the shoulder hey you're right and she definitely had her arm around my shoulder so only only people that only people that love you yes position themselves in your life to correct you yeah and if you're not positioned in my life to correct me don't bother and try we bail our hate mail here i use it for kindling all winter yeah we don't and we answer every letter that comes in to ramsey solutions and we have since day one except hate mail yes because the only answer to it is there's not an answer yeah because you didn't really want an answer you just wanted to about something yeah so like me saying about it let's shall get hate mail for that one right so there you go because i'm i'm way too christian for the non-christians and i'm well not christian enough for the christians but happily right here in the middle baby that's why i like rocking with you dave you know cause we just gonna be real yeah well that's for sure we ain't got time to be anything else life's too short i'm getting old i've got that old man syndrome now well you said that not me i said it's a syndrome i didn't say it was an old man the younger people looking at you like out there in the lobby you're getting old yeah yeah yeah yeah anthony he young keep it up i'm gonna hit you in the back of the head but dave i gotta ask you this question over the years last year's if god would have told you hey in 20 years you're going to help millions of people you're going to have billions of download what would your what would you have said to god then i'm curious you know we've had that discussion a lot me and him and um i'm really grateful he didn't do it all at once because i wouldn't have had the character to carry it he's incrementally built the muscles wow a little bit at a time every year yeah it took forever to get 100 radio stations and it took forever to get to 200 then it took forever to get 300 and now we're at 644. and it took forever and every one of them was a dog fight every one of them was a scratch and you know and you know we were on sirius xm then we weren't then we were on we were on sirius and xm when they were two separate companies and then we weren't and we've been on this radio station that radio station and then we weren't and then we're back on it uh you know we just have outlasted a whole lot of people is where it amounted to uh that thought that i had one guy on radio this is great he called me from uh mississippi and he said i'm gonna have to take you off the air and uh this is back when we were smaller probably had 40 50 stations and so i was talking to him personally and so he's got to take you off there and i'm like man what are you taking me off there for he goes i can't stand the liability i said liability i'm not saying anything that's going to make you liable i mean i'm telling people how to get out of debt how do you think you're going to get a sued for that and he goes no your show is so boring somebody's going to fall asleep while they're driving in a wreck he was dead serious too oh canceled me and um you know we're still in the business now he's not but um that's how it works out best the best revenge is success right you just keep going you just don't stop and you don't stop and and here's the thing if you ever stop being who you're supposed to be yeah in order to keep the mob happy yeah the mob will you're over you're done yeah yeah so you you can't apologize enough for the mob yeah you can't uh adjust your optics or your message enough for the mob so have some principles folks and stick to them over an extended period of time and you'll become wealthy you will build a quality marriage you will raise children that will rise up and call you blessed as the bible says you will build a business that where the team loves you and you love your team you will do the when you continually do the right thing on principle not optics not the way it looks over an extended period of time is the only way you will find your way to any level of success so when you ask us a question in these next few segments about your money it's not going to be based on what feels good because children do what feels good adults devise a plan and follow it so anthony and i are always going to lead you any of the ramsey personalities and i are always going to lead you on a journey of principle here's the principle here's the law of gravity now honey if you jump off a building it's going to hurt it's a law of gravity don't do that don't do that then you call me up and you go well dave i jumped off the building you told me not to now how old am i gonna do i don't know man you broke your leg now what we gonna do we gotta figure out the next thing we'll fix we'll pick you up wherever you are but it's gonna be on principle that we're giving you guidance and if you can't handle that don't walk in the kitchen baby don't do it this is the ramsay show [Music] cliff and i joined christian healthcare ministries because we really liked the concept of christians sharing each other's burdens and we really experienced that firsthand when cliff was diagnosed with heart disease it was just such a relief to know that financial burden was going to be taken care of chm is the original and longest serving health cost sharing ministry get started today and check us out at chministries.org [Music] budget [Applause] [Applause] [Music] anthony o'neil ramsey personality is my co-host today open phones at 825-5225 i am dave ramsey david is in salt lake city hi david how are you hi dave doing well how are you guys doing better than we deserve what's up in your world yeah i have a question for you i'm a full-time student in a master's of human resources program at my local university i've been doing your hustle program i'm going to graduate debt free in december with a little bit of savings have a job lined up my my current job told me that if i have an mba so if i did an mba though i taught me 6 000 more a year and the nba is going to take me an extra semester and 24 20 000 more on student debt and i'll lose my savings i wonder what your guys thoughts were on that i'm sorry you have to go into debt to do it yeah yeah you can't hustle your way through it that's an expensive semester too yeah really 20 000 bucks for a semester that's ridiculous now are you sure that's a semester is that a year i've i've never heard of a semester it costs 20 000 you have yeah vanderbilt's more than that a semester goodness gracious but anyway you're not going to vanderbilt so what are you what's the deal i mean you're not going to freaking mit either what's the thing i mean why is it so stinking expensive it's part of the differential tuition they have at some business schools yeah that's what i thought so they're charging you again for a lot of the classes you already took that they're going to count towards your mba that's what that is right correct yeah correct that's called bs um that's not mba that's different um [Laughter] uh i want you to get the mba i don't want you to go into debt to do it right and i want you to not to overpay for it so we've got two wrong answers in the equation out of three um how about uh your new job pays for it i don't know i i've talked about maybe doing some classes online maybe considering working in january started working and paying as i go to finish the mba yeah some of the better mba programs are actually not full-time student programs they're actually adult ed yeah and they're for people for executives to add an mba on while they're working so like night classes and so forth and some online classes and your current employer pays the tuition for fun as a employee benefit i think that would be the way i would go in other words i'm not let i'm not letting this school rip me off because that's that's a ripoff yeah so let's let's pursue the mba some other way somewhere else at a more reasonable cost and maybe your employer picks it up as an employee benefit and no debt yeah but the but the nba is not necessary for you to win in life okay uh and very few places this must be a very large company very few places pay more for an mba they pay more for the knowledge that you get while you got the mba and as you apply that in the marketplace but very few places actually i don't pay more i got a thousand employees i don't pay a dime more for an mba i pay for what you do your raise is effective when you are yeah and now david now this is this a career that you plan on being in for the rest of your life as well i i mean i do i see it's a company that i could grow with pretty substantially cool great then i agree with dave we got to figure out how do we get this mba without going into twenty thousand dollars in debt in a semester i mean it's just foolishness for me i guess i haven't heard it because people don't come to me saying that because they know i'm telling them no that's stupid but in your case i agree with dave we need to figure out how to do it so i would immediately go back to your job ask them hey i'm willing to get it but are there any initiatives here like can i get a tuition reimbursement do you all have any programs well there's got to be other schools in salt lake that are doing some adult ed stuff absolutely and adult i mean vanderbilt has a great adult program for an mba here in town a bunch of people been through it yeah that are friends and so forth i don't know that we've got one a graduate working here we might i don't have any idea but um of that program but lots and lots of schools have uh you know adult follow-through mbas uh because it is a good the reason is not necessarily the actual degree and the value of it in the marketplace the reason is the knowledge base that you gain while you study for it is valuable got you uh for instance the mba is on our team i don't have an mba right i've got a phd in dunb but um but the uh but the the mbas on our team have taught me and other team members other leaders in this place over the last decade about strategic thought yeah i'm a scratch claw get down the ditch find something kill it drag it home tactical entrepreneur i i get stuff done man and uh but but that's sometimes you're just running in circles because you don't have a plan while you're getting stuff done and it's just sheer activity is your survival rate if you'll do strategic thought with your activity and your work ethic you do a lot better and mbas have taught us a lot about strategic thoughts so we actually spend a fair amount of time on strategic planning here i agree uh but it's all learned from that skill set and so that's a an example of something that is very valuable actually turns into real dollars in the marketplace but uh it's not i didn't do it because he had an mba i did it because he or she convinced me that this is good a good critical thinking skill set that we're missing out on things at the company if we don't do it yeah and so but you don't get raises in most places now again big corporate america yeah they're gonna where you went to school might matter one of the few places 99 of places you deal with don't care where you went to school and they don't care if you've got graduate work but they do care if you're smart so education is vital but we pay cash for it as anthony says in the book debt-free degree so that's david that's what we would do that's how we'd work out it's a really really good question and a good rant to get us on steve's in rutland vermont hi steve how are you i'm not bad i'm a big fan of yours i've been listening to it for years and thank you ed you took my call like someone's gonna get on your phone i'm honored how can we help okay i am a retired engineer um one kid graduated college and one's still in college both of them had college funds that i fully funded to pay for that degree so i'm pretty much debt-free but here's my great question the question i have is i'm selling some property in a ski resort town and now i'm going to be going and finding my re retirement home in florida because you have to pay a state income tax and everybody knows the common things should i take out a loan or not i asked td bank and they said if i had 99 000 of income shown they'll give me uh two point three six percent and my financial institution was talking about um two point six five percent i thought question is it worth just writing a check buying the house that i want to retire in same 68 maybe our last 15 years to take a 15-year mortgage or a 30-year mortgage or just pay to check in no mortgage okay i'm a little confused i'm a little confused how long did you say you've been listening to us uh for almost a little over a year now okay all right cool well we appreciate you being i love your discussions on the phone during the time have you ever heard us say tell somebody to borrow money uh you seem to be against it [Laughter] yeah that would be uh that would be true and the reason the reason is stability and peace versus the risk that borrowing adds to your equation and so um i own uh uh vacation property as well i'll just put it under that category and it sure is a different thing to own one of them uh when there's no debt on it uh when they call you up and go oh there was a little storm down here so you're going to sell those and you have the cash to pay cash for your retirement house and so i do have the cash around here that would be known as a no-brainer yeah go go go pay cash man uh thanks for listening to us though for a year but absolutely the only time we're going to say to borrow money is when you get your first mortgage and then once you pay off that mortgage we're going to really tell you don't go back into debt you know bottom line and the reason is is that it gives you stability particularly in your retirement years in your wealth building in your life to not have any money borrowed yes y'all remember when this thing happened called a pandemic 12 months ago and y'all were all scared of losing your jobs and losing everything and economic collapse you all remember that that was 20 minutes ago people so let me tell you build your house out of bricks not straw or sticks and that's called debt free so that's how we're going to advise you steve thank you for being in our audience sir this is the ramsey show [Music] [Music] anthony o'neil ramsey personality number one best-selling author is my co-host today in the lobby of ramsey solutions on the debt free stage johnny and daniella is are with us is it daniela or danella daniella daniella i'm sorry i knew i was going to mess up so welcome guys how are y'all doing good excited and where do you guys live houston texas all right and all the way to nashville to do a debt-free scream yes sir how much you pay off 192 thousand dollars oh how long did that take uh 34 months good for you man you've been getting it yes and your range of income during that time uh 110 to 160. good what do you guys do for a living i'm a police officer and i'm an assistant in a cancer research laboratory okay and you've both been working lots of ot he has anything that came up right anything and everything i was working about 70 to 80 hours a week i'm thinking 34 months wow yeah well thank you amazing what kind of debt was the 192 000 uh it was everything dave we had two cars medical bills um personal loans personal loan hospital bill but the biggest was student loans we had 120 000 student loans together so you were like normal yes very a little too normal actually two too normal yeah a lot like going on with your normal but yeah oh my gosh man yeah you i mean when you added all that up did you about have a freaking heart attack uh it's very it was very scary we sat down and we didn't know how much it was and we found out we we thought it was impossible wow that's too big a mountain yeah it's overwhelming and you yeah you did it in 34 months under three years oh by the way one of those years was a pandemic yes yeah just throw that in for the spice and the gumbo well that created a lot of ot for him too so yes yeah i guess i didn't think about that that's true wow well way to go so tell us the story how did you start all this our oldest daughter we have two daughters our oldest one was just turning one and i i love being a police officer loving a husband but the best thing in my entire life is being a father and i wanted more children and when our daughter turned one we had her in daycare and we were like hey let's start with time for the second one and we were looking at our finances and with two daycares and just with the bills we had we had no money left and we just yeah we make a hundred thousand dollars a year and we are broke right and we just bought a story yes we just bought a house and we were completely house broke and we did not know where any of our money went wow so what'd you do so uh basically i heard your name twice in one week and i was like okay let me give this day ramsey thing a try uh one guy has four one police officer right now has four kids i was like wow how are you doing this he goes well we're doing the baby steps and dave ramsey and i had never heard of you before and then one of my best friends i was paying off this car like four years early and he said something about baby steps and dave ramsey i was like okay i'm getting the hand let me let me see what this dave ramsey guy's about god is whispering in your ears so uh we were going on i was going on a guy's cruise with some other officers and uh i took the total money makeover with me figured maybe i'll read it if i can sleep at night and uh so the first half of that that cruise was very fun i was spending money like normal completely and then uh i couldn't sleep because the rocking and i burned through your book in probably about a night and a half and the second half of that cruise was like what am i doing so i definitely controlled my spending and when we got back i told my wife so we got to do this now were you on board when he told you that no oh yes i was completely i'm the nurse not on board not on board the boat yeah no i was on board with the plan i'm the nerd and i was doing the excel sheet and he was the free spirit so he was just spending money like crazy and then when he came back from the from the cruise he uh he was like he was just showing me all these pictures we can do this i'm like i've been waiting for you to do this for so long and then right after the cruise harvey happened and so he worked all this overtime i didn't see him for a whole week wow and that first overtime check uh we completed baby step two and knocked out three credit cards one sorry one sorry i got you i knew where you're going i was about to say that that was a big change wow that's so fun y'all now throughout this journey i'm curious what was the hardest thing with you all you two look very young have two beautiful young children um um you were making good money but i'm pretty sure something was difficult what was the hardest thing throughout this journey uh the hardest part was just being away i had a one-year-old daughter and i mean working 60 to 70 hours um a week or 78 hours a week i was gone a lot of the time i worked nights so my overtime was during the day and i'd be sleeping in the afternoon and we'd basically be two ships passing in the night i'd be finishing overtime going to sleep and then it was time to go to work yeah wow yeah the hardest thing for me was not seeing him raising raising our first daughter and and just him missing all the milestones but we knew this was worth it we completely knew but he's there forever now oh yes now it's amazing now now with our second daughter now he's going through all the baby like mild state smile steps with us and he's like wow i missed a lot i'm like yeah but now we're here and now we're free wow you'll be all right you got it man you got it and you got you when they know you're there you're going to be there right oh yeah that was that was the best that was the noting they're so young they don't even know let me get all this knocked out real quick yeah then you don't have to miss a ball game or do anything exactly because you're working overtime to pay debt i mean that's just good for you man well done you guys okay your rock stars you did it you paid off 192 000 in 34 months all right you you're not someone with an opinion you're someone who's actually done something so your input is valid what do you tell people the key to getting out of debt is uh for me it's two things one is keep track of your progress we have a debt free board a progress board that we did every month without fail i look forward to every at the end of the month putting our it's only stickers but every sticker represent a hundred dollars and we put so many stickers a month i look forward to that every month because as hard as i was working i knew i was building more and more towards the end and the second thing is stay connected the facebook uh group is so amazing because there's someone winning on there every single day so the baby steps facing facebook yes yeah there's someone completing baby step one you're like wow look how far we got we've come do you remember when we did one or there's someone paying off their house i'm like wow we cannot wait to get there so we went through fpu twice once the beginning of baby step two and once when we were almost done and it's it's two different um ways of looking at it because i mean one is a theory you're like maybe this thing will work and then at the end of it you're like now we're looking for baby step seven and everything else yeah very powerful well done you guys one more question before we let you do your debt free scream and before i ask a question johnny thank you so much for serving man yeah um i know police officers sometimes uh don't hear that enough and i want to say thank you thank you thank you for doing what you're doing and risking your life to go out there and protect us to that young person that is graduating college and about to walk into the world and they're getting bombarded with all these opportunities to get the credit cards to get the debt why would you tell them to avoid it i would tell them to avoid it because i mean you go off to your job you're like i'm making all this money but then with all these credit cards and all these extra minimum payments it just goes away and you're if you if you just graduated completely work like you were a college student just work and work and work go wherever you got your degree in work and then once once you paid off those student loans you don't have anything else i just imagine we paid off 192 000 what if we didn't have that and we put that on our house instead so all of that was opportunity costs i mean it could have been going towards other things so our goal i'm 34 our goal is to pay off our house by the time i'm 40. come on man and we know that's completely possible it's six years yeah so we have six years to do what we did in three years i love it okay so uh lily and rose are gonna join us for the debt free scream or at least one i think yes the whole one of them is crying one up screaming that's okay scream girl let's hear it let's hear those lungs i love it well done you guys well we're so proud of you we got a copy of rachel cruz's book for you know yourself know your money as your gift and uh way to go you guys excellent excellent work all right johnny and daniella lily and rose from houston texas 192 000 paid off in 34 months making 110 to 160 count it down let's hear a debt-free scream three two one we're dead free wow what a great mom what a great dad family tree has officially changed this is the ramsay show [Music] [Music] [Applause] [Music] anthony o'neil ramsey personality number one best-selling author is my co-host today as we answer your questions about your life and your money this is the ramsey show the phone number is triple eight eight two five five our question of the day comes from blinds.com find out for yourself why blinds.com is the number one online retailer of custom window coverings you get free samples free shipping and when the new promos they run every month you'll save even more use the promo code the magic word ramsay to get the best possible deal hey dave today's question comes from sean in wyoming sean says i recently graduated nursing school with 19 000 in student loan debt my girlfriend and i want to get married next year the hospital where i will be working at pays 250 a month towards student loans i want to pay more than that and have my debt paid off by next year do you think it is possible or should i postpone my wedding um you know dave i think here it's it's two things one i think yes you should take advantage of the 250 a month and also add more to that but i am not me personally going to tell you to wait to marry the love of your life because you are in debt great you know um i would definitely say do what you can um as far as whatever you can't afford but then at the same time i want you to go ahead and pay cash for the wedding and so if that means you gotta pause a little bit just to set aside five grand for the wedding and then jump back in on it i'm totally with that but uh don't postpone the love of your life uh because of because of your debt but i do want you to attack attack it as much as you possibly can okay what we don't know from his question is who's paying for the wedding whether he is or not he just says we want to get married next year right my hospital where i'll be working we'll pay 250 a month which is three thousand dollars in one year yep um i want to pay more and have everything paid off so here's the thing sean you're just out of school uh you're been living like a college student i want you to keep living like a college student and the great news about the nursing field is that you can work all you want to work and so while you're planning the wedding um you already got her on the hook because you're engaged so you can just work like all the time like that policeman just did yep an hour you know 80 hours a week and he paid off 192 000 in three years now she was working too in that case right but uh i bet you can knock out the 19 especially if they're going to give you three so you only got to knock out 16 in one year and still get married yes all i'm saying is keep your lifestyle to nothing scorched earth syndrome beans and rice rice and beans and work like a freaking maniac yes that's where money comes from and the great news about nursing is you can always work always take those weekend shifts at the er they pay big do some uncomfortable stuff and be done with this 100 done with it you're completely out of that and clean when you get married that would be a whole different way to get married now we're not saying post upon the wedding we're just saying work your butt off and i would have told you that if you were married too by the way and i would have told you that if you were single and dating by the way so the whole answer is you make more money by working more and keep your lifestyle to nothing by the way the good news about working all the time is you ain't got time to spend money you know even today do you know when i spend the most money when i'm bored oh yeah that's when people start clicking on that little prime button that's true on amazon i think i need one of those i'm not sure what it is but i need one of those i'm going to look up crap and make up something that i don't even know i need and get me one right this is what happens when you're bored but when you're working all the time and you're you know when you're all you when you come home all you got time to do is fall asleep because you've been working because you're tired yeah i wouldn't want to be a workaholic listen that's not a danger for most people in our culture right most people don't work enough and they don't work while they're at work there's an idea you know and all that i mean so you know just just and let me tell you you're not going to die from overwork just before you die you'll pass out yeah it's okay so i mean you're going to be all right you're not going to die from overwork and i'm not suggesting you do this the rest of your life i'm suggesting you do it for a very short time it's a sprint so that you never have to do it again you're retraining your whole life so good dave that's good i mean like you know we do the same thing around here even and it's not about making money but it's about getting momentum to something like like when you launch a book yes there's like a big pile of work right there it's called a book tour yeah all the media hits 16 freaking hour days yes i mean and they also they all look alike it's like a groundhog day because you answer the same question over and over and over about the same book right and it's just but you have to be mentally on emotionally on spiritually on physically on because you get fatigued because you're working your butt off but it's you don't we don't do that we don't work we don't work each other like that oh i don't work like that all the time no but i can when i need to to get to a goal and the reward the sprint yes and the reward is so refreshing afterwards the momentum that you get off of it yes you can spin something up in your life that that spirals out there another decade from a 90-day or 120-day sprint yeah and that's what we do we launch a book it's what you do when you get rid of debt it's the same kind of stuff natalie's with us in dayton ohio hi natalie welcome to the ramsey show how can we help hi how are you guys great how can we help um so i was wondering should i move out of my parents house and rent even though i'm still in debt um a little bit of background on that is i'm about 25 000 in debt but i did graduate with my associates last year i currently make 23 000 a year and i'm about to get a second job that makes an additional 16. um i'm wanting to rent because my job is an hour away and it's kind of kind of getting to me for that drive what is the job so i am an animal care tech for a reptile breeding company a reptile a wee bit specialized are you uh so what's your what's your uh what's your vote in your associates in it's just a general science degree a general what degree science science just associates with science so you want to work in the animal field though yes and this is going to take you somewhere beyond 23 000 i assume because that sucks it should yeah this is just temporary um but i'm kind of in a i'm willing to try a lot of other things i'm getting into a lot of different careers but right now this is my stable job different careers or different jobs uh careers like i'm i'm learning how to weld currently oh so you're not you're not hooked on the animal thing then yeah no it's just it's just because a welder can make 50. yeah loader can make 75 80 too depending on where you are and who what you're welding yeah yeah yeah that's big time that's good i like that okay so this is not um so really moving for this job that you're probably not going to be in may not be the thing right correct um the the area that it's in though i would like to stay in um so it's just i just don't know whether or not you like the area anyway okay where the lizard thing is you like the area anyway yeah okay how old are you uh natalie i'm 21. okay okay you know i think before i move right i'm advising you i need to figure out what what's in my next three to five years okay i'm not telling you to stay home and i'm not telling you to move what i'm saying is before you do anything major identify okay where will i be in the next three to five years where am i going am i going to be a welder buy by then and then what is that path that i need to take to become a welder or am i still going to be in the animal field and then what do i need to do to get more than 23 000 a year so you know me personally i would love to see you answer that question and then when you answer that question then i could give you a better answer on okay should you move out because if you're saying hey i'm gonna do this i'm gonna be a welder i can have all my associate uh all my degrees out the education out within a year and then i can move here i can go do this then i'm staying home and i'm gonna go that path yeah rather than racking up more bills and i still don't even know what i'm doing it's not the income it's not the location and it's not your age it's the lack of stability in your plan yes when you get your plan stable then make your move yeah that's good and i'm gonna give you i'm gonna give you 12 months you need to stay what you need a stable plan and a roommate and some money piled up you may not you won't be out of debt by then probably but that won't matter you can you can still finish because you're not afraid of work no i like that you know you're you're a girl go i mean from lizards to welding i mean there you go that that's a huge work should do anything yeah that's good that's that's good so yeah and pick up a second job for 16k yeah there you go so you're going to be all right you know that's not the thing i do want you to use the home base to have a stable launch pad from i like anthony's suggestion a lot that puts this hour of the ramsey show in the books [Music] have a friend or family member that needs a daily dose of ramsay advice in their life let them know about the ramsey call of the day podcast it's a quick hit of advice about life and money in under 10 minutes check out the ramsey call of the day podcast wherever you listen to podcasts [Music] this is the ramsay show [Music] you can be intentional about your character you can have money and a career you are the hero in your story [Music] live from the headquarters of ramsey solutions broadcasting from the dollar car rental studios it's the ramsey show where debt is dumb cash is king and the paid off home mortgage has taken the place of the bmw as the status symbol of choice anthony o'neil number one best-selling author of the book debt-free degree ramsey personality and host of the table a big time exploding podcast and youtube show where you can call in and participate in the conversation around the table the phone number here if you want to talk to the folks at this table is triple eight eight two five five two two five anthony and i are here to answer your questions about your life and your money triple eight eight two five five two two five adam is with us adam is in lake city florida hi adam welcome to the ramsay show hey dave hey uh thank you for uh taking my phone call our pleasure sir how can we help i am currently on babysit two and out of all my debt my vehicle is over fifty percent of it so i am trying to sell it i'm thinking about selling it what do you have however it's the end of my it's the highest thing on my debt snowball it's the last thing i need to pay off what do you owe i owe 17 4 on it and what's it worth about 13 12. the few the few people that i've reached out to for a quote have been quoting me between 12 and 14. okay so that's a wholesale at a dealer right they're trying to buy the card wholesale correct so if you look up kelly blue book kbb.com for private sale if you put it on craigslist that means it's going to bring 15. yeah i i believe kelly blue book is running 16 to 18. there we go so yeah we're fourteen hundred dollars often all right so what's your income uh forty forty thousand eight hundred i'm not including my side hustle you said forty thousand eight hundred uh usually yes sir okay so 41 grand all right and then you got a side hustle that makes you what roughly two thousand a month okay two rules of thumb we use one is is the value of your vehicle more than half your annual income you do not violate that but you come close yep number two can you be 100 debt free if you keep this thing other than your home within uh two years and you probably can do that yes sir i think my date is july of 2022. just with your side income you can probably do it this year yeah do you like do you like the car i i don't like the payment more no i know but do you like the car yeah um not really i mean it gets by it gets me by that has to suck making a car payment on top of something you don't even like man yeah well that might be reasonable that might be reason to move down let me tell you why why i came up with a two-year thing and let this you percolate on this and anthony you join in okay but my reasoning is if the car is going to keep you in debt for an extended period of time past the two-year you're trying to run a race with ankle weights on okay you're not in that but you're carrying a fairly heavy weight you got one brick in your backpack anyway right and so you got something to carry here because you're gonna make it but like you said it's half of your debt and you can clear that on something you don't even like that much anyway then i might do that now here's the downside here here's the reason i try to project this out just past because we don't get people out of debt just for getting out of that we get you out of debt so you can become wealthy and guess what happens as you become wealthy you're going to move into a better car okay so if you move down out of this car into a into a beater and 18 months from now you move back into another car that you pay cash for of similar price which is really about the schedule you would be on uh it really was it was you know it's kind of just a little two-step here it wasn't like a big deal move yeah now if you told me you're making 40 and you owe 50 on the truck sucker's gone yeah blow it up i mean it's done okay you completely screwed up doing that but that's not your case so um what kind of car is it adam it's a truck chevy silverado sure oh i mean that's a good that's a good car though yeah nothing wrong with that truck yeah nothing around but he doesn't like it so yeah i'm so the whole idea is if you're going to turn around around 18 months later move back up anyway and you like the car then i would say fight through and keep the car but you don't like the car so you're going to move out of the stupid thing in 18 months anyway once you're dead free you're probably going to move out of it right correct let's go and move out of it now and accelerate debt free then i i agree now what's out of the debt though adam i'm sorry what's the other debt uh credit cards and some personal ones okay cool great yeah sell the car man let's go ahead and sell the car now once you sell the car do you have cash to buy another car yeah you got to get you had a little cash set aside for a beater yes right that was the other that was going to be the follow-up question yeah you push pause on your baby step to pile up some cash to transact this right okay now how do i go about deciding what price level i need to be saving up for i mean i mean i understand it's a beater and everything but a couple of grand that's what requires a couple of grand yeah okay and it may not be a truck adam what's your side hustle i uh deliver groceries through uh a company an online company are they requiring a certain age of car uh no okay they just require reliability correct yeah so two to three grand yeah c3 yeah cause this is not a car you're gonna keep it has no sex appeal but has reliability it's a car you give a name to okay old blue got me through when i was getting out of debt and delivering groceries you tell your grandkids this story someday i'm back in the day i had all blue right yes sir and take pictures of it because you want to remember the sacrifice absolutely i wish i had pictures of some of those crap cars i drove when i was straightening this stuff out man trust me i got mine it motivates me yeah so but that's what yeah so you hear all the different variables variable number one he doesn't like the car variable number two it um it's half as debt uh variable number three he doesn't like the car so yeah yeah he's got a good side hustle so yeah bust it pile up three grand four grand 1400 to cover the the whole three grand to buy you a little something and let's put this thing on craig's list get her sold and uh don't buy something till you get her sold yeah and and then just work like crazy to get out of that while you're waiting to get it sold when it sells don't give it away we're not trying to sell do not sell it for wholesale there's no reason you're not about to be repo'd so don't give away don't sell a 16 000 truck for 12 000 to a dealer right and create another 4 000 problem for yourself there's no point in that the dealer's not doing anything wrong they're just trying to make a living but they they buy cars cheap so they can make a make a profit when they resell them they don't buy them at retail and let me say this to america i know you probably hear some of you all who are new to us dave did not say skip over the the small debt and go pay off the card what he's saying is good still worth the baby steps but while you're working the baby step method paying off all you did from smaller to largest sell the vehicle so he's not putting no more money on top of that one but in order to do that we really put baby step two on hold for a second exactly pile up cash to get the car in to do the other but then that releases him from this larger debt right so in a sense the 1400 hole he is in becomes an item in the debt snowball and moves to the front there it is that's in a sense what we're doing we're instead of the whole seventeen thousand dollar debt yes it's the fourteen dollar 1400 hole and so that's that's the way i the logic flow works on this the critical thinking skills yeah adam you're good man you're good you got this baby knock it out man knock it out this is the ramsay show [Applause] [Music] hey folks i got a great option to help you pay for your education the army national guard the army national guard believes you are the next greatest generation because you have proven that even in adversity that you have what it takes to succeed that's why they offer benefits like tuition assistance career training and a paycheck to help you avoid debt no matter what your goals are the army national guard can help you get there visit nationalguard.com to find out more [Music] nearly 1 in 10 people relocated last year and that was just in 2020 in the middle of a pandemic and that means that this year there's a good chance you or someone you know is planning to move now i know it feels like there's a thousand unknowns you're juggling when you're relocating but you cannot lose focus on one of the most important personal and financial factors in your move housing i recommend hiring a quality real estate agent like one of our endorsed local providers or elps to help you find the right home in your new city a lot of these markets are quite hot right now hard to find a property without overpaying all kinds of garbage going on and elps are the top performing experts in their local market they have years of experience they're high octane high protein they'll help you get it done without you getting in some kind of a weird bidding war or something it's easy to get instantly connected with an endorsed local provider agent text house to 33 789 to talk with a ramsey trusted agent about how they can help with your relocation that's house text house two three three seven eight nine open phones at triple eight eight two five five two two five joseph is with us in louisville kentucky hi joseph how can we help hi dave uh anthony how are you all doing today better than we deserve what's up outstanding so my wife is a teacher and we just moved from georgia where she was contributing to the georgia teacher retirement system and a 403 b because she was being a match from the school system we have recently moved to the louisville kentucky area so she moved her funds from the teacher retirement system to the 403b uh since she can no longer contribute to that teacher retirement system her new school system doesn't offer any kind of 403 b match when she's still required to contribute to the kentucky teacher retirement system we don't really know what to do with her 403b now since there's no match and she has to make the mandated contribution to the kentucky trs we only plan on living in kentucky for another two to three years so should we use the 403 b to roll the kentucky trs funds into when we leave like we've been in georgia then she can just like match her roth ray instead while she's here no i think this might be the right move now i just want to left and right let me check no it's not um here's the thing you're military so you're moving all the time and that means she's gonna constantly be having this question every time she moves careers every time every time anybody out there listening moves a job always take any retirement with you that you can take and roll it to an individual ira if it's a if it's a roth ira a 401k or a roth 403 b you're coming out move it to a roth if it's a traditional like in this case it's pre-tax you're going to move that to an individual roth and if i mean an individual ira if you move it to an individual ira there are no taxes so what you're telling me is the georgia retirement gave her a lump sum and moved it into her georgia 403 b right uh it's an independent quarter of 3d throughout through a uh just do an insurance company and the kentucky is mandatory contribution to a 403 b correct it's a mandatory contribution to the kentucky teacher retirement system well i guess i got like a 4018 or two okay so it's not on a 403 b no sir but they allowed me to roll that 401a from the georgia trs to a yeah i would not do that have you done that already yes sir i did okay well you can still move it the good news about okay a 401k you cannot roll out of while you still work there a 403b you can roll out of while you still work there so anything in kentucky you can get into that 403b get it in there so you can roll it out almost immediately into a rollover ira so go to daveramsey.com click smart vester find a smart investor pro in your area in kentucky where you are and sit down with them they'll verify what i'm telling you but any money you've got in a 403 b anywhere you can and should immediately roll to an individual ira the beauty of this is you don't have to just do hopscotch every time you move you've got one account with your smart investor pro and each of the in each of the times you do a rollover will have a different account number within your main account within your master account but you will still have all of your money in one place being managed with your with you telling it what to do with it with a good smartvestor pro and every time you get any money loose from anything now the kentucky stuff when is she vested in that when she leaves so uh she starts consuming the kentucky trs the day that she starts her the day that she gets her first paycheck yeah until she terminates her employment with anywhere in kentucky when she terminates can she take it with her she can indeed take it with her and so what you're saying is the idea is to not roll that 401 a into a 403 b when we leave no roll it to an ira roll it's hot our array okay every time because what you're going to end up with let's say you live in 10 different places she's going to have 10 different accounts without with iras all in one master account where you're managing one set of investments all exactly the same way instead of going from lame 403 b to lame 403 b because most of these 403 bs the options in them are insurance based and they suck yeah i agreed sir so even if they offer a 403 b match if they take it if they offer a match take a match but you're they're not matching your rollover anyway sure i agree they would only match what you're putting in so now that's different than your annual i'm talking about when you leave never roll it to the next company always roll it to an individual an ira an individual retirement account does that make sense yes sir that makes me different so you end up with a stack of 10 of those if you had 10 different jobs you know so i've got an ira i've got a an old sep uh i've got an old uh some other retirement thing that i went defunct on an old a simple and i've rolled them all into a series of individual iras and then i converted them to ross because i was in a position to pay the tax when i converted them to roths but the point is never leave your old retirement back behind you unless you're forced to and never move it into the new company on and there's no case that you're forced to do that yeah i had two four three b's coming from uh the church world yeah before i came here and i wrote those into an ira and individual irish exactly that step yeah yeah always bring it with you and always put it in an ira later you can convert that to a roth if you have some extra money to pay the taxes that that creates but right now just move it into the ira in good growth stock mutual funds because when you're working with an ira with a broker like a smart investor pro you've got eight thousand choices not four yep yep yep or eight yeah or or whatever so very interesting good detailed question and uh hey man the good news is you're paying attention so you're not gonna mess this up one way i mean what you did was not horrible this is just like you did like an eight and i did like a ten yeah that's all you did not you didn't do like a two and i did a ten okay you did a not a bad thing but all we did was just give it a little more horsepower yeah cause you can pick better mutual funds you got more control of it and you've got your broker looking over it instead of just languishing over here in an old 403 b yeah that's good stuff chris is with us in tampa florida hey chris hey dave hey anthony how's it going guys good better than we deserve sir how can we help so right now me and my girlfriend our graduating seniors in college right now and she will be graduating with about 45 000 worth of debt split between private and public student loans and i will not be graduating with any and my question was what is the best way to help her pay off all her debt let me tell you the best way you can help her is by not giving her a dime and just by encouraging her to take her debt seriously um and the reason why that's the best way man is you want to just protect yourself protect your heart um and then just encourage her along the journey like hey uh are you gonna take this serious you know how can i encourage you what are you gonna do about this debt but do not hear me young man i hear it in your heart uh do not spend a dime of your money to help pay off hers build your foundation so if y'all do get married you can then help her then but for right now mind your business help her out and she'll be all right how much student loan debt she got she is about 45 000. you pile up 45 000 in your savings account while you're dating and engaged and when you come back from the honeymoon write a check and pay it off yeah don't you pay off anybody's debt that you're not married to yeah period ever no exceptions ever was that unclear not used real clear okay good this is the ramsey [Music] [Music] [Music] [Applause] [Music] [Applause] [Music] in the lobby of ramsey solutions on the debt free stage eric and brianna are with us hey guys how are you hey folks how are y'all doing welcome welcome where do you guys live houston texas welcome to nashville how much debt did you two pay off we put off 75 000 in about two and a half years good for you excellent and your range of income during that 30 months we started at 65 went up to 115 and now we're down around 85. okay sounds like a story there what kind of debt did you have 75 000 well just student loans most people who go to school for as long as i do they they call them doctors um it took me seven years to get my bachelor's because anthony wasn't around whenever i was going through that time and i i missed out on all the good advice oh man i love it good for you man that's fun what do you guys do for a living i'm an engineer and i own my own baking business baking wow very cool yum good stuff all right so 75 000 worth of student loans mainly on the engineer yeah yeah and uh are totally on the engine total well yeah she had a little small but like 16 were mine oh but a dash of salt right yeah okay all right good what happened 30 months ago what lit you guys up to do this this is pretty impressive well we'd uh we'd gotten married we're heading going through our pre-marriage counseling and and we had a lot of good influences around us who advised us on on some of the same things you talk about on how money can be one of the biggest stressors on a marriage and so that's something that we wanted to attack together um get you know beneath us and behind us as we you know looked at uh the future together amen i love it i love it what how what what alone this journey uh what would you say what was the hardest thing to do no fun we said no a lot like dave says no is a complete sentence yeah um and that's something we had to do an awful lot i mean no to multiple family trips and friends wanted to eat out all the time we had a 25 a month eat out budget which basically pay for some fast food and maybe ice cream if we uh we didn't get the extra fries and so we kept it really tight for for two and a half years yep yeah wow good for you guys was it worth it oh yeah gosh absolutely absolutely absolutely all right so you're getting pre-marriage counseling somebody says money's the biggest problem don't have that problem work on it and you said okay then how'd you what did you do next well i don't like spending money to begin with so it wasn't hard for me um for me i was like yeah let's do this he's like oh okay yeah well let's we'll do it yeah we we got a plan we sat together and we we deal detailed out well like you said mostly my debt and we looked at what it was going to take monthly to pay that off and um you know she kept me honest and we just got after it together it was the first thing we did and really there wasn't much conversation it was just we were pulling the pulling the sled in the same direction gotcha how'd you get in touch with us so you were a constant companion on nymph's family road trip so i appreciate that all growing up you were the sixth family member in the car as we drive from houston to ohio and houston to arizona to visit family listen to the radio for years um and i had to listen uh to financial peace in high school oh okay i had nothing too too forced yeah forced in the car ride when you're a kid and i was in school you noticed she said i had to in high school it was a requirement it was required to graduate i know that's awesomeness yeah and so you already knew this stuff and so when he started talking about it it was easy to plug into our stuff oh yeah yeah okay because it already been around you for a generation that's exactly yeah very good now do you think um that we should force all of our students in america to do what you did yeah could you at least hear that you need to save money or there's a better path than just what you hear from everybody else like oh it's just a car payment it's good and so for me my mom was like no we don't need to do that like you don't need to do that yeah you have to go into student loan debt because my mom never went to college but um i was like well i just heard this guy say it's not good um she was like it's okay it's okay um she goes you can pay it off after and i was like yeah well i have no other option but you had just a tiny one just tiny versus the guy who listens to it on vacation got nothing he got nothing yeah i just immediately decided to go out of state for school and the whole mess and you know multiple different institutions and didn't know what i wanted to do what do you tell people the secret to getting out of debt is you guys are amazing congratulations thank you so proud of you appreciate that well we've got to be pulling the same direction um this wasn't you know her dragging me or me dragging her through it it's something that we both wanted um that's the other thing we had a why um you know ken coleman talks about if if you if your why doesn't make you cry it's not your why or something at least to that effect and that's something that we believe in we we saw what life after debt looked like and we saw what the future could hold and you know with the way god's blessed us with their income and with our future possibilities we didn't want them to be hampered we wanted to be able to bless people further on down the line okay so why then come up and then come back down oh gosh i worked oh your hours hours yeah you just went back to a fairly normal exam yeah that's exactly it yeah yeah and then a bunch of side gigs i mean dog sitting and house sitting and and yeah and a lot of the crazies gone now you're back to fairly normal pretty much and where are you guys at now in the baby steps uh we're paying off our actually we're three four five we're saving up for a down payment on our our uh uh first house yeah excellent job i'm proud of you who were your biggest cheerleaders we were friends jake and jen uh friends aiden friend uh hunter and lisa and then our family they were just they were wonderful a lot of church small groups things like that very cool good for you so proud of you very well done we've got a copy of rachel cruz's book for you the latest new york times bestseller to come out of ramsey press it's called know yourself know your money you'll both love it it's perfect for this situation you guys are incredible i'm so proud of you all right here they are eric and brianna houston texas 75 000 paid off in 30 months making 65 to 115 now back to normal at 85. count it down let's hear a debt free scream three two one work that fake this is how it's done baby yeah you know the today day we've had two debt-free screams and the common thread that i'm hearing through both of them is all of them had a very detailed why the last one was like hey i didn't want my daughter to grow up with you know this struggle um then theirs is we wanted our marriage to be healthier not perfect but at least healthier yeah and the and in every case the side benefit the mathematical implication is that when you don't have any payments you become wealthy yep if you pay attention and start investing yes sir and it's really not rocket science the average person will change jobs 12 times over the course of their life and a lot of times nowadays people change jobs like they change clothes but if they keep doing their iras they keep doing their 401 case they keep investing because they don't have if you just invest a car payment you'll have millions of dollars if you'll stay out of the car payment business that alone will cost you a million dollars but you get rid of sally mae and give her her eviction notice and you learn to be intentional and you learn to walk side by side with your spouse it changes everything you sit down with one of these smart investor pros they can show you then how to take that money now you can fund your kids college now you know and here's the thing people that have not gotten out of debt and that just talk they don't ever do anything yeah 98 of the people that you survey i'm making this number up but you know almost everyone you ask ask them if saving for your kids college is important they almost everybody says yes yes yeah you know how many people actually do it maybe what 10 less i'd say i'd say five to ten percent five to ten percent gotcha actually save money for their kids college everybody else is a freaking theory yeah it's something well that'd be a good thing to do someday uh someday someday i'll write that book why don't you get up off here someday seriously and go do something oh my gosh these guys are incredible i'm so proud of them hey if you text invest to 33 789 folks text invest to 33789 you'll get one of the smart investor pros because here's the thing the reason to get out of debt is so that you can invest the reason to invest is so that you change your family tree and you retire with golden rocking chairs baby and you don't have to you know you don't have to worry about eating alpo living on social insecurity with too much month left at the end of the money when you're 83 and you can't freaking make your light bill because you haven't done because you gave it all the car company yes you gave it all to master yes card you work monday through friday labor to give someone else a fruit of your labor that's exactly what happens that's why we call that that's why the bible calls it the slave to the lender yep the borrower is slave to the lender it's more than just a metaphor it is a mathematical freaking fact yes this is the ramsey shadow [Music] [Music] anthony o'neil ramsey personality number one best-selling author of the book debt-free degree is my co-host today here on the ramsey show the phone number is triple eight eight two five five two two five tom is in san antonio hey tom how are you good thank you dave uh i had a question about um a property that i sold a year ago we had an agreement they made a 10-year loan and i'm financing it for them but we had an agreement that they would be able to pay it off after two years um they've paid up to exactly one year so far and i just want to know now they're wanting to pay it all off and uh if they pay it all off now i think the interest i would lose would be about 45 000 and i'm wondering if i should go ahead and uh take the money and invest it or stick out for the next year wow so you're charging what kind of interest rate six and a half percent wow okay and so this is like uh eight hundred thousand dollar loan um the actual loan amount was 708 yeah 750 so about seven or nine okay so 45 000 is the interest for one year at six and a half but they've gotten been able to get a loan better than six and a half well they wanted to they wanted to pay it off sooner anyway and my attorney decided it would be beneficial if we say we'll even pay off early but not until at least two years and they agree to that okay so i don't know if they're getting along somewhere else or they've just got the money okay it's a commercial property and uh the the when when i owned it the occupants were paying eight thousand dollars a month rent and their the people who bought it their payment to me is about 4 700 a month mm-hmm they've gotten another loan okay um just took them a while to get a bank ah i didn't even think of that then i guess that would make sense with six and a half percent interest they probably got a much better interest rate yeah i wouldn't take much um in a three percent world um trying to think what i would do if i found myself in this case okay here's your down here here's what's running through my head i'll just go ahead and say it all out loud so you can kind of calculate it with me tom okay um sure number one there's the forty five thousand dollars that you would have gotten had they taken it all the way through two years uh what's the how much did they put down they put down uh let's see the selling price was 750. okay so you've got a loan almost equal you've got a loan very close to equal to what the property's worth right so you don't want this property back no no the main reason i sold is because it's in el paso and i'm 550 miles away in san diego you don't want it back i mean if they put down 200 000 and you could take it back for 500 and do it again you dude i'd take that right but you don't have any equity here you're not going you know so yeah they're not threatening to hand you the keys but i'm just saying uh that that kind of tells me how much hardball you want to play not much because you don't want this thing back we want to work this out okay so what i would do is say um i was supposed to get another 45 000 out of you guys in interest um i will let you pay it off early and negotiate a prepayment penalty that is not 45 000 but less i thought about that and i was thinking maybe you'd throw up maybe half i might even say 20. say if you you know if you'll pay me half of what you were going to pay me they're probably if they're getting three percent that's still it doesn't really save me money doesn't save money close enough though i mean 15 to 20 if you could get the information out of them in the discussion as to what they're doing and what their interest rate is then it would tell you how much it's gonna save them like if they got a two percent then they'd say four and a half you can calculate out don't take the whole four and a half but take a chunk of it right but if they're getting if they're getting a four percent and they're two and a half and you're offering and the savings you're offering them is equal to three they're not going to do that i don't know how i'd find that that information i would ask yeah you think they would just tell me yeah i'd just say why are you paying it off oh you got another loan code what was the rate you got on the new loan i'm glad you were able to get a better rate because i want to work this out with you i don't want to charge you the whole interest as a prepayment i want to let you go and i'd love to have my money i got some other stuff i can do with it but let's work this out for a win-win where we kind of meet in the middle okay and don't charge them up don't charge them a penalty that is greater than their savings right there you go right i get it and okay so if we come to an agreement um then i should probably have my attorney drop the thing yeah it should be a one-page thing it's it's really a release provision i agree to release the thing and i'll give you a deed release on this i'll release and cancel the note uh for a payment of x plus x penalty the actual principal balance plus a penalty of twenty one thousand dollars or a penalty of seventeen thousand dollars or whatever you come to agreement to right yeah that seems fair yeah they're getting out and you're not you're not gonna take all of it um because i bet you they're not saving 45 000 by the way by doing this year early they're thinking that you're just gonna go hey i want my money which most people do by the way um so nothing wrong with what you're doing i'm trying to take a little a little tougher stand uh just because it sounds like they have a real reason to do this but there's nothing wrong with asking i just like having a great conversation because if i get information i can design a deal that's good for them and good for me right i see i'm not trying to screw them i'm just trying to design something because if i was trying to screw them i would just go 45 000 bucks right because and they're not going to pay you off then they're going to sit there another year uh because they're not i'm guaranteeing you they didn't get a rate low enough on a commercial building of 700 000 loan cheap enough that they're saving 50 cents on the dollar here now dave let me ask you this question would it be a bad idea let's say if they come back say yeah we got an interest rate for three and a half percent would it be bad to just renegotiate the contract with him and say all right i'll go down to three percent don't you all sign up at least a five they need i'd let them go and get their new loan because they might lose the loan over the coming year uh or they might the rates might tick up over the coming year it could change the deal but that wouldn't be a bad thing either if it was a longer than one year yeah i might consider just lowering my rate if you want to be in the mortgage business now that's the other side tom of this discussion okay is if you push this and you end up with this property back that's a bad thing okay okay uh that's why i don't carry notes back when i sell property i will sell a property cheaper as long as i get all my money yeah than if i carry a note back the only way i want to carry a note back is what we used to call in the business happy happy loans okay and a happy happy loan is you get a good enough interest rate and what she did he got a great interest six and a half in this market is a booming interest rate right absolutely um and you get enough of a down payment that you're happy if they pay because you love the interest rate and you're happy if they don't pay because you're happy to take the property back yep and so if you put 200 000 down on this deal and i'm getting it back for 500 it's worth 750 i'm not mad about taking it back because i can make money on the on the flip again yeah but uh the he's not got any margin yeah i'm taking it back because he didn't get enough of a down payment i like it now here's another question dave and i'm asking because i'm learning i'm learning going on the ramsay show um and charge it to my head if i ask the wrong question i'm asking the learning i'm debt free got my money you know all that and if i go out there and do something like that and charge someone interest it do you suggest that people know that or not no i would not do that because i think you can take that cash and make more than six and a half on it i got you either by buying more real estate you make a better rate of return than that if you're careful yeah and or investing in good mutual funds you can make a better rate of return than that if you're careful there you go i thought so and so and uh while that property is going up in value your notes not changing it's actually going down so you're better off to if you're going to collect payments off a building you're better off to collect rent and be the owner yes then you are collect payments off a note and so uh but but if you're gonna carry a note then get a good high interest rate and get a good strong down payment happy happy loan happy on both ends but i don't recommend that that's why i don't carry it yeah cause i figure if i'm gonna sit here and worry about whether somebody's gonna pay me monthly yeah i'm gonna worry about the renter while this thing's going up in value right and i get the upside yeah so you don't get any upside once you step out or the ownership role and become the bank gossip just wanted to ask it's a good question it's a good discussion and uh it's something to think through there's this is a that's an unusual question in these times because interest rates are so low very few people carry back owner terms in this situation that puts this hour of the ramsey show in the books [Music] hey guys this is kelly associate producer for the ramsay show did you know that over 16 million people listen to the ramsay show every week and a lot of those people listed on one of our 600 plus radio stations across the country to find a station near you head to daveramsey.com [Music] show this is the ramsay show [Music] you can be intentional about your character you can have money and a career you are the hero in your story live from the headquarters of ramsey solutions broadcasting from the dollar car rental studios it's the ramsey show where debt is dumb cash is king and the paid off home mortgage has taken the place of the bmw as the status symbol of choice anthony o'neil ramsey personality number one best-selling author of the book debt-free degree is my co-host today i am dave ramsey your host thank you for joining us open phones at triple eight eight two five five two two five that's triple eight eight two five five two two five you jump in and we'll talk to you about your life and your money marissa is with us marissa is in portland oregon hi marissa how are you i'm good thank you for taking my call sure what's up uh so my husband got a life insurance policy before we were married and it's one of those policies where he paid into it and then it had some sort of investment so it has a 30 000 cash out right now and we've since obtained two other policies for him that are way cheaper per month and give us more in life insurance it gives us the 10 times his income yeah you got term insurance and you're getting rid of this crap good right yeah yeah this one pays is 267 dollars a month so i've actually stopped paying on it but we still have this 30 000 cash out and so i talked with an edward jones person i was thinking of putting it either in an ira or in our kids college funds but she suggested transferring it over to a long-term care insurance policy why how old are you how old are you guys he's 42. oh you need a different broker your broker's broken brokers maybe it didn't yeah it didn't sound right to me um and so i'm trying to make a commission you need a new broker okay so so here's the thing here's the thing there's their long-term care insurance nursing home insurance your chance of using that before 60 years old is almost zero statistically right okay so you don't buy it until you're 60 but if you're 60 unless you got 10 million dollars you buy it okay okay now having said that there are two types of long-term care insurance out there floating around originally when the concept came out and it is an excellent concept to take care of nursing home above 60 is simply like health insurance you just pay a monthly premium and if you get sick they pay your hospital long-term care insurance you pay a monthly premium and if you need care in-home and your policy provides for in-home care or you go to the nursing home and your policy provides for nursing home they pay the nursing home right that's what you pay you pay and they pay that's the thing the newer kind is where anytime the insurance business starts bundling something you're getting really get screwed with the exception of bundling homeowners and car you do want to bundle that but everything else you're trying to bundle investments with insurance you're about to get screwed long-term care has now started selling a product like that crappy whole life policy you're getting rid of where it has an investment element to it and you can put a bunch of money in it and then you never think about long-term care again and so this agent's trying to take your 30 000 bucks and put it in one of these whole life type uh long-term care policies where you're gonna do an upfront payment and you're about to get screwed right okay again so that's why i'm telling you not only don't do it but run because there's only one reason that agent would recommend that are two reasons one is they can't add or two they're crooked okay because it's bad it's a bad bad bad product and they can't add or they don't or they put their commission ahead of what's best for you you don't need to work with them anymore immediately and it's not because of the brand you mentioned i'm not mad at edward jones there's doofuses at almost every company and you ran into a doofus so um the um what what should we do with the 30 000. you cannot roll it to an ira you can take it out and invest it but long-term whole life life insurance is not pre-tax you can't roll it to an ira now you could take it out and invest it in a mutual fund in your name or you could take it out and invest it in mutual funds for your kids college and you know do a 529 or something which is probably what i would do if you're on baby step five you'll get a decent rate of return that way yeah okay well we have not the only debt we have left is the house that was the other thought is if i take that out and you could throw it at the house you started the house or you can throw it at the kids college but you don't need to throw it at retirement you're already doing 15 towards retirement right yeah right larissa do you have yeah do you have anything invested into your car your kids college fund not a whole lot that's one area that we've kind of slacked on so they're uh eight and 11. yeah i would do it i would click smart vester pro at uh dave at daveramsey.com ramseysolutions.com and you'll find um the the smart investors there and sit down with you they're not gonna try to sell you crap like this they do stuff the way we teach here consistent with that and with the heart of a teacher where you understand it by the way let me tell you this you have a really good nose because you smelled a rat you didn't know how stinky the rat was but you smelled a rat and you something didn't feel right yeah and i want you to learn to go with that feeling that's a really good feeling to listen to yeah it's called the holy spirit speaking to you absolutely and god god's kind of whispering in your ear don't do it yeah if it feels funny you know why because it's funny if it feels weird you know why it's because it's weird that's why it feels that way and we need to learn to trust ourselves in that kind of thing especially when you got a good nose for it like marissa does yeah very very good stuff all right anthony let's stop for a second do a little class on long-term care i pulled out my cheap sheet here okay i need to get that too the average claim on long-term care is 4.2 years so when someone goes into a nursing home they on average pay 4.2 years which means a whole bunch paid less time a whole bunch pay more time but the average so the chances of you paying a nursing home for 10 years is almost zero in other words okay okay and uh but a lot of people do go in and a year two years three years they pass away yeah so but 4.2 is the average 17 of the claims are all that lasts more than five years wow so from 4.2 to 5 it gets rid of 83 of the people wow okay so if you got a five-year policy you're probably okay yes like 87 of the time right yeah in other words statistically so that's one thing you want to look at you do always when you're getting long-term care want to get an in-home care feature because you can get in-home care many times cheaper than a nursing home and it's not unusual for the quality to be better because it's like having a personal trainer instead of being in a weight class with a bunch of people okay right in other words you've got somebody right there you've got a nurse coming in checking on you right your kind of stuff that whole kind of thing so look for that uh it doesn't hurt to look for an inflation kicker that kicks it up the coverage kicks up a little bit every year but the cost kicks up a little bit every year and um so you need to get the term long-term life insurance unless you have a very high high net worth okay and you said 10 million i just made that up but i mean it could be 5 million if you want the bottom line is do you want to do you have the cash to pay for the nursing home got you out of pocket 60 years old and before the chances of you going into a nursing home are like 0.00 something percent it's almost nothing wow but every day you live after 60 it goes up now i've got hundreds of millions of dollars in real estate right i'm 60 i'm not buying long-term care insurance right we'll hire a nurse to take care of old dave if he goes out of his head and somebody will take care of him i hope one of these people around here i make sure every day i might get accused of being out of my head sooner rather than later but it is a vital part of financial planning only after you're 60. we've strongly recommended at that point for most people's setting this is the ramsey [Music] shop [Music] what makes our show unique is that we genuinely care about our listeners we're intentional about choosing the best advertisers to recommend blinds.com is no exception they offer high quality window treatments at unbelievable prices and they make it simple to shop blinds shades and interior shutters with easy online ordering free shipping and a guaranteed perfect fit go to blinds.com and take advantage of this week's special savings [Music] [Applause] welcome to the ramsey show anthony o'neil ramsey personality number one best-selling author of the book debt free degree is my co-host today as we answer your questions about your life and about your money jared is with us in los angeles hi jared how are you i'm good mr ramsay how you doing better than i deserve what's up hey i was calling cause uh sadly my wife and i found you guys a little too late but in december of 2020 we got into a fleece and we want to get out of that and currently we are on baby step number two but the problem is we have we put all of our savings and got down to the thousand dollars of emergency funds towards our debt to pay off credit card in one debt so now we have at least that now i see that we should get out of immediately yeah we don't know the next steps we should take um okay well we've got to gather up some numbers to ascertain the damage yes sir all right um the first number is you call the fleece company and you ask them what the early buyout is which is effectively your payoff for today have you already done that yes sir it is uh 38 740. okay and so this is a long-term fleece isn't it how was it a five-year uh it's only a three-year a three-year okay 38 000. have you looked up the value of the car yet yes uh it's it's because it's a 2021 kbb actually doesn't even have it can't even give you the value so i looked at a 2021 2020 it's a honda odyssey the 2020 if i trade it in it's 34 000 if i go private party the range is 36 to 38. okay okay so yeah um hypothetically if you could sell to an individual then you could probably get out of it whole right because if you can sell it for 38 and you can give the fleece company 38 and they give the title to you then you've got your deal and you're out right yes and that's that's the that's the goal here um that may be tough for two reasons one is it's freaking brand new and two is if somebody's gonna buy a brand new car they're gonna buy a brand new car uh and uh two is it's a very expensive car because it's you know forty thousand bucks and not a lot of people walking around forty thousand bucks in their pocket uh buying off of craigslist uh when you get much when you get much up above twenty something you start to get a little bit less transactions private sale yeah a lot of these transit a lot of transactions then a dealer of some kind involved um okay so it sounds like you probably get a dealer to pick it up for like 34 36 maybe right yes leave you a couple grand in the hole what's your household income uh 138 000 well that's good enough yeah okay well the only thing i would know to do is to stop the um stop the debt snowball temporarily and pile up the cash to get out to get this transaction done and then you've got to figure out a way to get the car sold to someone for somewhere in that 36 range hopefully and you put you know you're going to need another car obviously and so if we budget five seven thousand or whatever for a car and we need three for this you need ten grand to do this it's going to take you a couple months to gather that up right yes i have uh the problem is we we got a van which our already was humbling you know but we have three kids i mean you bought the bentley of vans the honda odyssey i mean yeah yeah i know it's so funny it's a fabulous car i mean rachel cruz will sell you one she likes hers she can she could be a honda salesman i'm telling you is that what she got it was honda honestly wasn't it uh in the video yeah that was odd odyssey yeah sharon rachel's is yeah yeah okay i thought it was i thought it was you know so anyway yeah she she thinks it's the best car since sliced bread but yeah i actually love it now it just took me a while to relax yeah i mean it's that it's that whole thing you move into the van stage of life yeah that's a tough move some midlife crisis looking for a place to happen but uh yeah so anyway aside from that yeah you've got to figure out a way to replace this thing now how much debt do you have other than this so outside of the lease we have 95 000. what is that student loans no it's uh we got solar panels on our house as well as a heloc okay okay and he locks more less than half your annual income right yes okay yeah so you we're looking at a hundred and uh thirty thousand bucks and you make a hundred and thirty and so if you could be debt-free in two years and keep the car that might be a possibility too just keep paying the fleece until you're debt-free and then once you're debt-free pay the fleece off early buy it on out for yourself and keep it if your wife loves the car and you are thinking the van is cool now yeah i mean you could treat you treat it like a car debt i wouldn't have signed you up for this thing okay for a lot of reasons but uh uh but but you're there now and getting out of it's gonna cost you 10 grand out of pocket in in a replacement car minimum a little seven thousand dollar van of some kind um and you've got this really high income so what kind of trajectory is your income on is it going to shoot up from here yes it's still i'm supposed to get a raise this year we were thinking of getting out of the lease because now i feel stupid and getting a cheaper car um because in the long term we don't think we want to buy this car we rather get something that we can hold for a long time that we it's something cheaper but we wanted to see your opinion i i'm fine i'm fine getting out of it i was trying to i'm trying to figure out a way if it is there a scenario in which you keep the thing is what i was trying to figure out but now that you're there but uh but if you want out of it that's how you get out of it you got to pay the difference in what somebody will give you and 38 yes and then you've got to also have on top of that money to get something to drive yeah so what are you driving i have a paid off huh uh toyota camry how many kids do you have we have three kids five three one okay so you're into another used van of some kind right an suv or something yeah right yes okay all right well you you can do this um but you're gonna have to buy a nice enough van that it because this is as nice as your car that it becomes it becomes her car because the federal law is mama gets a good car i was just about to say that that's what i want i want her to get the good time yeah so that you know it's a ten thousand dollar move here yeah okay so how quick can you stretch together 10k if you stop everything if i stop everything uh and that that's what we're trying to figure out i figured we learned that i eat too much so i gotta stop that well that that's really not a financial thing no no i eat so much yeah me too chocolate doughnuts but what's that got to do with money okay now you're getting perfect i think 10 000 um we can get done in six months to eight minutes no i think you can do it in three yeah i was about to say man you make 130 right how much is this fleece payment the police payment is 5.85 that's not as bad as i thought i was gonna guess seven okay good all right good okay yeah i mean tighten that budget up and let because the quicker you get this thing done the faster you can get started on your dead snowball without the 500 coming out the faster you're going to be out of debt and so i i you know if you're ever going to turn up the heat to white hot intensity you know blue flame level baby it would be to get rid of the van yeah because the fat and the by the way the faster you get rid of it the the the more it's going to bring i mean if you wait six months this car is not going to bring anywhere near what it'll bring today right yeah so we need to get out of this thing pronto yeah as a matter of fact if you have the ability to borrow the 10 000 i probably would do it and just get it done because you're going from 38 000 down to 10. yeah yeah i would i would go ahead and do that if you can find a deal where you do a trade-in and walk out with a usable seven thousand dollar van and you eat the three and so you have a 10 000 loan and that car dealer set you up with a little car loan i'd do that deal because that's moving down in debt yeah yeah because we're going to go down obviously in a lot of cars a bunch but you're going from but you're going you know you're cutting your debt by 75 on this from 40 to 10. 10. i think i did that math right yeah close enough 30 grand yeah you right there [Music] this is the ramsey chef [Music] [Applause] [Music] [Music] [Applause] [Music] anthony o'neil ramsey personality number one best-selling author is my co-host today in the lobby of ramsey solutions on the debt free stage jordan and natalie are with us hey guys how are you we're great hi how are you welcome where do you live bakersfield california wow a bit of a trip to nashville yep kind of wild times to be coming in out of california yeah it's uh it's nice to be out here it's a little different like we're like walking around like normal people yeah like normal are they gonna let you back in yeah it wouldn't be the worst thing if they didn't but all right how much debt have you guys paid off uh we paid off 350 000 holy wow how long did that take it took three years and three months whoa three years and three months way to go and your range of income during that time um it was 270 to 310 excellent what do you guys do for a living i'm a journeyman lineman i'm a stay-at-home mom uh-huh so you're working all the time aren't you lots of time 30 hours 40-hour lots of yeah lots of hours yeah you've been kicking it man yeah wow so was there an apprenticeship to do that absolutely yeah there's a five-year apprenticeship i went through and then became a journeyman okay because yeah because you're making some bank there but you're working hard yes sir yeah we love it well done well done what kind of debt was the 350 000 that was our house you paid off your house yeah in california yeah i'm looking at weird people man oh that is that doesn't matter how old are you two i'm 29 and 31. with a paid for house in bakersfield california yeah mic drop that's pretty incredible guys thank you wow that's awesome so tell us the story what inspired you to do this um well it started a little ways before the three years and three months my parents got me the total money makeover when i was 20. and it just started working actually making some money and you know got credit cards had a car loan and i read that book and um it just i stopped all that and then uh we got married and had we had no consumer debt at that point then we bought a house um that we stayed in for a few years and then wanted to move into a house that we'd be in for the next 20 years or so until the kids were out of college and everything and and buckled down said hey we we don't we don't want any of this around for our kids and and uh just knocked it out as fast as we possibly could wow so the jump from 270 to 310 was that you just taking a bunch of overtime or is that your normal increases it's just uh all over time even just up to that's way more than my base you know i just was working all of it was over yeah just working working working yeah okay how many hours a week were you working during that three years um it averaged like 65 but there was lots of weeks or 80 100 you know wow some good pay but a lot of long hours right and that that's hard work too i mean that's not that's not like 80 hours sitting at a desk climbing climbing poles and towers and stuff like that in the rain and so the fires out there in california so that was you know a little it can get dangerous yeah yeah we can but we uh we get good training and and i'm i'm pretty damn good at what i do there you go yeah i like that good for you man and you haven't paid for a house yes sir so what's this house worth uh 550. wow that is so neat i'm sorry i mean i'm just sitting here just i'm looking at millennials um and i'm seeing how she's holding your hand real tight brother because she got a good looking man who paid off the house what would you say as a young couple was the hardest thing throughout this journey i would say the time that we had to sacrifice without jordan there and just meet with the kids and yeah yeah how many kids you got we have three kids what ages eight six and one oh yeah you had a big job too yes you're like a journeyman mother yeah yeah that's pretty serious i mean and he's gone i mean he's just gone 80 hours i mean he's not there he's there to sleep and leave again that's it exactly yeah wow so sharon said when we were starting this business she was a single mom with a husband i was gone working like you were working you know i mean it was for about three years you know about the same thing you did but it set us on it set us into a trajectory that we never went back to because of that that the momentum you create off of this a slingshot for decades into your future yeah exactly well done you guys so how's it feel to have no payments in the world of freaking 30 years old wow it's surreal it's it's awesome too like i i love what i do and i really enjoy working but not that much you know so the phone rings now and i'm like we we have dinner plans or we're doing something with the kids i'm like oh i'll just hang out with the family now you know and so it's been it's just such a blessing not to have any burden of of any kind you know where you were taking everything before everything i was the guy if they if they needed if the power was out they called me you know that's simple yeah when you're sitting down with your kids when they are 20 21 years old and you tell them why to avoid debt what would be that reason just because um it just robbed us of the time that that we could just be together as a family and it just was an extra burden like i had all these worries about you know i didn't i mean we didn't have any other bills but just i don't know there was something inside me that just didn't want to have to pay anyone else besides ourselves and our future and my kids future and um and uh i don't know i guess it's hard to explain yeah natalie natalie what do you tell people the secret to getting out of that is just staying focused and um for us it was we had a lot of talks about the things that we could do when we were done so just motivating each other and encouraging each other that it's just temporary to push past yeah yeah gratification push through these 60 and 80 hour weeks yeah yeah the initial plan was like seven years 50k a year you know that's how we wrote it out and then uh once we got going we're like well if we just dig deeper and cut deeper we can cut this time down and be done you know just see the other side and see that light yeah when you can see 3.3 years you can stretch for it yeah reach for the tape exactly i like it well congratulations we're very very proud of you you're an impressive young couple if you just take what was a house payment you're going to be wealthy yeah very very wealthy from 30 to 65. i mean that's pretty stinking incredible so uh you you're going to be in an amazing place and yeah i changed your family tree if the kiddos get the message about hard work and living on less than you make and avoiding debt and this is how our family became wealthy if they get that message then they will then they'll carry it into the other generations they'll get it it's not going to be optional for a long time so they'll get it all right i like it that's very good i love it well we've got a copy of rachel cruz's book know yourself know your money for you guys and uh that'll be part of the continuation of this whole process for you that's our latest new york times bestseller from ramsey press so good good stuff all right jordan and natalie from bakersfield california 350 000 paid off house and everything they're weird they did it in three years and three months making 270 to 310 with 85 hour weeks count it down let's hear a debt-free scream three two one [Applause] this is exactly how it's done it's not often i'm speechless dave [Applause] that's true this is that's not often they're amazing yes a young couple 31 29 years old said hey we're gonna here's the other thing to take note there's a lot of doctors and lawyers that would trade income with him absolutely and they're 250 000 student loan debt yes buying themselves yeah i mean this guy he's killing it he found a trade and he knows how to work that trade obviously went through the apprenticeship to become a journeyman and uh and is more than providing for his family i mean they're gonna be very wealthy yes sir i mean they are very wealthy pretty incredible yeah fun stuff there's fun stuff yeah you're right they're probably almost millionaires now oh man half a day this is the ramsey [Music] [Applause] [Music] show [Music] [Music] [Music] our scripture of the day second corinthians 4 18 so we fix our eyes not on what is seen but what is unseen since what is seen is temporary but what is unseen is eternal henry ford said obstacles are those things you see when you take your eyes off the goal well taxes taxes taxes taxes these days there's pretty much two ways to do your taxes either you do them yourself online if they are simple or you pay a tax pro if they're more involved because the tax pro will pay for themselves if you got a complicated return we are thrilled to offer ramsey smart tax as a way to do them online this year 50 000 people have already chosen to do that if your taxes are simple enough our software can handle all the deductions the standard one or if you've got enough to make it worth your while even itemized deductions and if things get tricky and you need an extension you can apply for that directly in the software if you want a refund let me remind you refunds are a sign you overpaid then they're going to give you back because you overpaid that's all a refund is you have a savings account with zero interest at the government but if you did overpay you should get the refund we want to make sure you get it and we'll make sure you do without charging you some ridiculous processing fee like the other guys so whether you need a pro or whether you want to do it online with ramsey smart tax we'll we will set you up with it either way without any side hustle without any side thing going on we're not going to try to sell you something it's pretty simply help you get your taxes done text the word tax to 33 789 text tax to 33789 and elise is with us in provo utah hi annelise how are you hi doing good thank you good how can we help um so my question for you today so my husband's looking back looking at going back to school and getting an emba and while he's back in school we're looking at me um being a stay at home mom with two kids and we're just trying to decide whether or not we should sell our house while he is doing that i'm out what are you gonna be living on yeah so we will be living on he'll he makes around 52 000 a year so it would be about 2 700 a month okay so i'm sorry he's not i thought you i got the impression he was quitting his job he's not no he's not quitting his job he will be doing an executive mba so he'll be working during the day going to school at night and then i'll just be at home and so why do you have to sell your house um because it would make our house payments then be half of what we're bringing in during that time i know and i just know whenever we've talked about he's like well i'm sorry i thought he was keeping his job he is he is but i will be getting rid of mine oh how much do you make so why are you getting rid of your job so he can go to school at night um so i can stay home with the kids okay so we have two goals at one time we're trying to accomplish he wants to go back to school and you want to quit to stay home with the kids all at the same time so there's nothing to do with him going back to school has to do with you quitting your job um it work is it just to make it so we don't have to do child care currently i just work weekend night but with them going back in school you need more time to study that would generally be the time during the weekend that he would watch them but he would now need that time to be able to study i don't think the house is a problem here dave what do you think it is i think they're trying to do too much at one time but you're saying the re you now work at night and weekends right yeah and so he keeps the kids and then you don't work during the day and you keep the kids while he's at work yeah and the problem is him keeping the kids at nights and weekends wouldn't allow you to work anymore what do you make i make probably around thirty eight thousand what do you do here i'm a i'm a nurse why don't you change shifts yeah um oh because if you either way you got daycare right right yeah it's the same day it's the same difference i see and it sounds like you really want to be home and raise your kids right now yes yeah so it's not because the daycare bill is it's you you want to be at home with your kids well if you quit and come home you can't afford this house so yeah you got to sell it now then let's decide whether he's going back to school or not that's a separate decision really yep they've all gotten tangled up just because of who takes care of the kids at night that's the only reason they got tangled up the bottom line is when your income goes away this is not a house you can afford that's what you told us right yeah yeah and so uh and you're gonna go rent so you can stay home watch your uh so when he quit when he finishes the emba does that change his income automatically or just hopefully um hopefully it should hopefully change it to about what both of us are making currently that's a gamble how are you paying for it so his um work might pay for it or if not we were going to save up to pay for it okay and is it a two-year program two-year yep well i mean the other option is do you grit your teeth and you hang on with the 50 house payment for two years until his income goes up but we don't even have a guarantee his income is going to go up at the end of that so i do think you're moving down a house to make this happen okay it does it's not because other here's the problem you can hit goals but seldom can you hit four of them at once yeah and we've got the goal of this house we've got the goal of you being at home and we've got the goal of him finishing the nba right and they're competing with each other because they all affect money in the house hold and so the the least of the three is the home ownership and that's why you went there now i'm catching up with you is that logical yes yeah and then the next most important is uh either the nba or you staying at home they're probably somewhat equal in importance in euros minds both of them have to do with your future so you're betting on the future here yeah i think you move down and you get in a real good solid position and you have figured out how you're going to pay cash no borrowing for this mba that might work yeah and um i i i will tell you that that i am a fan i said this in another hour of the day already i'm a fan of the emba programs i'm a fan of education um i am not a fan of you thinking it's secret sauce and that somehow this is going to make your future easy it's not um i've got folks on our team that are smarter than or more educated than uh and that make more money than the mbas on our team make but they don't have mbas and so it has to do with your ability to develop business acumen and your ability to go out and leave the cave kill something and drag it home having letters after your name does not mean you're going to be successful 90 of success has nothing to do with that oh dave you're wrong that's what america's saying huh i'm a doctor i have an mba i am successful well i mean i'm just telling you the character quality let me tell you let me tell you what a broke doctor is one that doesn't work much that's what a broke doctor is you want a law you know what you lawyers are a dime a dozen that don't make spit yes they're everywhere yeah and so it has to do with work ethic perseverance uh critical thinking skills the ability to go in the marketplace observe trends and step on them i mean this stuff the mba can help you do that yes the knowledge can help you do that but this side what you don't want to fall into is the trip that the the trick that says oh the only thing keeping you from being successful is you don't have a degree ah if that thought ever goes through your head just yell at yourself wrong okay is education important yes but is that what's keeping you from being successful no we all know educated fools that are broke yep all of us know them they collect degree they collect degrees like a thermometer i mean they're everywhere they're out there all over the place don't be one of those and don't fall into that trap in your mind that's what's holding you back because it very seldom is speaking true otherwise i wouldn't be sitting here without an mba doing this so it's okay to get one but it's not a magic pill it's not a silver boy that puts us hour the dave ramsey show in the books we'll be back with you before you know it in the meantime remember there's ultimately only one way to financial peace and that's to walk daily with the prince of peace christ jesus this is james childs producer of the ramsay show did you know the ramsay show is one of the most popular podcasts in the world subscribe or follow today wherever you listen to podcasts [Music] you

Channel: The Ramsey Show - Full Episodes

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Id: T1PmVgzc6zA

Length: 121min 10sec (7270 seconds)

Published: Mon Apr 05 2021