Why Now Is The Time To Understand Your Money Habits

welcome to the dave ramsey 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 cart rental studios it's the dave ramsey show where that 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 am dave ramsey your host rachel cruz ramsey personality number one best-selling author is my co-host today here on the air we're taking your calls about your life and your money open phones at triple eight eight two five five two two five well over a year ago we start work on a project rachel writing her latest book and a year plus later all of that work comes to fruition and today is launch day on know yourself know your money tada it's here it's out oh i was telling my husband winston last night we were going to bed i was like i feel like my child is being delivered in homes like all across america because the book some of them got delivered early so people yesterday were on social holding them up and and posting it and i was like oh it feels like my child is out there in people's homes right now and yeah i which winston would not allow by the way but yeah you can do that with a book but not a real child not my real child but uh it feels like a child so yeah it is a long pregnancy it's a labor of love in so many ways because i actually ended up writing it almost two years ago because i did it before i had my third baby because i wanted to spend maternity leave not writing the manuscript so i wrote it before that had maternity leave and then came back and started doing edits so it's been a it's been a it's been a long cycle but it's fantastic that it's out and it's already people are already loving it so i'm so thankful the response has been uh right out of the gate really strong and of course you're working uh what book launch week means is you're working 16 hour days doing uh what a couple of hundred media hits in the in the uh in about a four about a three day period of time here yes yeah here at the office about including in the morning yesterday rachel ray and tomorrow morning good morning america yes wednesday morning for those of you listening on different times but wednesday morning good morning america be watching uh current hit time is around 8 23 if i remember right yes so be watching for that but also in your local television stations you're hitting every major market we can do all of that uh from our studios here with fiber these days and sure does make it easier than being on a bus it does i mean i miss book tour when you're usually when we launch books we're out for about two and a half weeks traveling and going to each city and doing book signings at night media during the day and i love that i think it's so fun so the fact that it got cancelled because of covid19 i was like oh man it's like one of those things that was canceled that you just i mean everyone has that in their personal life you're like oh i just hate that i don't get to do that so well you don't get to see the people and you enjoy yeah and i enjoy going out to eat at all the different restaurants in every city oh there it is no and there it is now we got i enjoy all of that i really do and i mean obviously yes i'm meeting the people and being in the studios and doing it all but uh but this is fantastic yes with three little kids at home it's worked out it's great so i'm able to be home in my bed at night but here uh in the day yeah helping promote it because it's been interesting even this morning i did about 10 different cities in a row and almost half of them were like yeah well our entire crew has been talking about it because you know they talk about the seven tendencies in the book and the money fears and your money personality and how you grew up and they all are connecting it to themselves so it's fun that it already has connected even just in a brief discussion about it well and since we can't do like real launch parties and real book signings we are going to do a virtual launch party tomorrow night january the 6th wednesday night and another one on thursday night at 6 00 p.m is that right both of us yes correct 7 p.m and uh okay i've got six on my notes so i don't know what's wrong but um do we know what's right is it seven or six okay i'm almost positive at seven yeah okay i'm not great details i'm a free spirit so i might be late to my homeland other note says this other note says seven so i'm pretty sure it's not one of each but you find it it's on rachelcruise.com yeah i'm pretty sure it's seven so virtual launch party rachelcruze.com you can ask her your money questions join the virtual launch party it's at seven seven p.m central time yes both now we have clarification on that so um i will fix that i was right then you were right this paper was right this one was wrong which is kind of surprising that's it well no it's not you got a couple things up in the air and you're memorizing all of it it's perfect so there you go 7 p.m wednesday night and thursday night january 6th and 7th the virtual launch party you can go to rachelcruise.com to ask her your money questions okay so know yourself know your money the thing that is resonating is the way you grew up with money and the money tendencies the seven money tendencies are you scarcity or are you abundance right right yeah so the whole book really was this deep dive into understanding why so we talk about the how to we've been doing that for decades now right how to get out of debt how to budget how to invest how to give and so i started really this process this was a few years ago where i remember diving into like the enneagram and learning about myself i was doing some counseling i read the book the birth order because i'm a middle child like seeing just how all of how you were raised in your current environment affects how you see the world and your personality and i thought man what how does that relate to our money and it felt like this black hole of content because i was like there is so much here of why we view money the way we view it why we handle it why it's our habits and our personal like all of that and when you can start to get a grasp on that then you can start making effective change you can actually start to say okay i can change my money habits because i know when i'm being unhealthy in a certain place or where that's a great habit and i can magnify that so in turn it helps you win with money so much faster and gives you lasting financial people as an example if you understand that you uh are scarcity versus abundance yes what does that do for you well so the seven money tendencies neither one's right or wrong on the on the extremes of these that can be unhealthy so for if you're an abundance mindset person you see the glass half full there's always more opportunity always more money to be made but the the bad side the unhealthy of that is you can be unwise you can make unwise decisions because you think you can out earn your stupidity yes 100 you think oh it'll be fine i'll figure it out yeah me as yours your hands i've always been able to make more money yeah so that's an abundance mindset so a more scarcity mindset you see the glass half empty and again if that's your natural bent that's not a bad thing you're a little bit more cautious a little bit more aware but the unhealthy side of that when you go to the extreme you end up making decisions out of fear you hold your money tightly because you feel like it's finite you don't want to let go so you're not extremely generous you don't spend and enjoy so that's unhealthy so these these um these tendencies to be able to pinpoint okay i can know when i'm going to those unhealthy extremes so another tendency is status versus security and this is why you want money some people want money for security they want to feel like they are taken care of that they're safe i feel good now again the unhealthy side of that is they end up just stalking away and money ultimately is not your security like there's a level of faith in our life and all of that so that can be an unhealthy uh side status not bad and i'm more of this i want i want money so that i can enjoy it so that i can buy things i can experience things i will budget so that i can spend like that's where i get my motivation now the unhealthy side of that is that your identity ends up being the things that you buy materialistic or your accomplishments that becomes who you are and that's not healthy so that's an interesting one to figure out why do people want to win with money and we started this years ago i identified people doing budgets and you included that in the seven tennessees of being a nerd or a free spirit and you guys have been through financial peace university 20 years ago heard all that yep and again the same thing the nerd can be too uptight too detailed clamp down the free spirit free spirit's there for you to have fun and free spirits have to be mature enough to live on a plan uh so that they get to do more free spiriting that kind of stuff know yourself know your money you can go to daveramsey.com rachelcruise.com discover why you handle money the way you do and what to do about it it is on sale officially today it's book launch day this is the dave ramsey show we were drawn to christian healthcare ministries because we both had young families and we wanted to have more children and we had also just started a real estate company and needed to find health care coverage that would meet our needs we were attracted to chm because of its low monthly costs and the ability to negotiate medical costs down established in 1981 and accredited by the better business bureau chm is here to meet the needs of your growing family or small business check us out at chministries.org we absolutely believe in it [Applause] [Music] rachel cruz ramsey personality is my co-host today we're answering your questions about life and money on the book launch day for know yourself know your money by rachel soon to be her latest number one danielle is with us in richmond virginia hi danielle welcome to the dave ramsey show hi dave how are you better than i deserve what's up so my daughter is three and she was diagnosed with leukemia at the beginning of april so we pause our vet snowball and my question is at what point do you start it up again she still has about two years left of treatment and as we we just weren't sure when to start it up again yeah takes my breath away um how's she doing she's doing very well um treatment's moving right along where we need to be kids are resilient that's what i have to say there are the kids are amazing when they fight this um it's the rest of us that fall apart my gosh uh uh well you got a long slog here and job one is beat cancer right yes we don't have any other jobs to do that's our only job yes anything else is like a side gig agreed yes including including restarting your debt snowball including all that kind of stuff so let's just say that uh number one it doesn't matter when you restart it what does matter is that you do everything you can with money time effort spirit prayer everything and you pour everything into this job one okay and it's all consuming and it should be and it's what you do so let's do that now you are kind of past the fog of some of that and you're kind of in the rhythm of the treatments given that it's coming up on the first year right yes and so if things are in a wacky world that you're in somewhat normalized the rhythm is somewhat predictable and you have extra cash beyond what you need to fight cancer and you want to start back a little bit that's okay i would not expect quote unquote gazelle intensity because i would not expect that of myself were i facing this by the way it's perfectly okay with me from from the using the principles that we teach to do absolutely nothing towards your money except pile up cash any extra cash you have you need to not go crazy and go into a bunch of debt with quote grief spending or something like that or or justification or rationalization well we can do anything we want to do because we've got this problem no because you got to go back and clean up the mess you make you said don't make a mess right but but pile up cash that would have gone towards debt and if you want to just wait until the three years is gone and then restart that's okay with me too rachael what are your thoughts well danielle's curious how much how much debt do you guys have all right we've paid off the cars we never got credit cards so the only thing we have under student loans which is 42 000 yeah household income is what 65 i believe yeah yeah i mean my husband's active duty military so it's been a blessing having a steady paycheck during this [Music] for sure yeah i mean i'm i mean i have a three-year-old danielle so i can't even imagine like it kind of just makes me tear up talking to you because i'm like i can't even go there emotionally because it's so terrible so i mean if that was me i think everything else in my life just pauses um and i focus on on my on my child so i'm yeah i'm with i'm with dave right there where if you choose to do nothing for two years until treatment's over 100 okay um because yeah that is your number one thing but if you had forty two thousand dollars in savings when that happened the you know at the end of three years that wouldn't be that be the way to do it okay in other words it's not you're not gonna again sli slide over and misbehave but you're just not gonna pay down on the debt and have no not enough money in savings to deal with something because you might need to jump on an airplane and do something right um and uh to get a treatment it's almost like you know when someone's pregnant we always say just pause for nine months wait till the baby's here wait till everyone's good and healthy and then whatever money you've saved then you can put towards the debt you can almost think of it like that like a two-year pause we're gonna just pile up cash okay when everything's good and the treatment and everything is done and she's healthy on the other side whatever you've piled up of savings then you can just throw at the debt yeah but don't go buy a new car no right and say that that's okay because of the mess you're in you made a bigger mess and people do that sometimes they they um well money is a coping mechanism you push your spending over like food's a coping mechanism you push your spending over to deal with the stress of this and yes the grief of having to fight this and all of that so yeah that's just guard against that and that's what a lot of people dealt with not this specifically but in 2020 the 43 of americans spent because of stress and anxiety during the pandemic so you see the rise of spending to feel good is what you're talking about and 44 can't fit in anything but their sweatpants i just made that up but yeah i mean there's that too so [Music] [Laughter] but i mean yeah food and money or coping mechanisms yeah if you and alcohol i mean there's a lot there's a lot of magnets alcohol sales are through the roof they're almost as good as plexiglas sales i know okay so anyway so so danielle the banner statement is making sure your spending is not just to cope but just for you guys to save pause take care of that baby owen is with us in newark new jersey hey owen your question for rachel and me well congratulations rachel on your book thank you owen i'm graduating admit you're awesome i'm graduating in may and i have a very generous job lined up and i was wondering how you would advise a 22 year old who's transitioning from being a college student making a full-time income um of course i'm going to get my emergency fund set up and using my full 401k match but uh there's going to leftover income and i don't want to waste it oh and do you have any debt currently when you graduate you have student loans or credit card debt no i was fortunate enough to get a nice dollar oh awesome amazing uh i mean yeah i mean i would say oh and number one the fact you're asking the question is encouraging because you're gonna be starting this process at 22 which is incredible so yeah i mean it's exactly what you just said just making having some cash on the side for an emergency fund three to six months of expenses and then looking into retirement and funding that 15 from there and then and even in the process if i wouldn't buy a house right out of college but having some savings if you want to save up for a down payment on a home because you know that may be coming later in life doing that too how much are you going to be making at your new job uh 157 plus a little stock good night owen what are you doing what's your duet software software development yes yeah software engineering okay wow nice owen that's a great very impressive young man that's a very good very impressive out of college to give you an idea i made exactly 10 when i came out of college or what you're going to be making when you come out 34. so yeah i think you have a bright future sir you're going to be okay don't screw it up wow got a free ride somehow and comes out because you're smart i'm scared academic scholarship yeah we didn't have any of those either in the ramsey household hey hey hey no i'm talking about me too oh and that's awesome way to go owen way to go yeah i'll just save up some money pile up some money and get ready for your home purchase above your emergency fund above 15 of your income i think you already knew the answer to this congratulations you are a stud well done okay so how do you feel sitting in your chair doing the show how long have you been doing the show 30 30 years you're getting more young people calling you than ever before would you say i think it's a youtube thing okay the demographic on youtube do you feel like a grandfather of america or you're like these young i used to be i used to be your peer when you called and i have evolved into uh then i went to uncle dave and now i'm just straight up papa dave yeah there's no question about it yeah i mean the the the guys calling are younger than my kids no if that didn't happen 30 years no it didn't it was like guys in their 60s calling you hey back in the day right no well i mean still i'll say great america there's a hope for the future there's a lot of young people like owens yeah it's awesome well and i i'll betcha dollars to doughnuts that he was a youtube listener probably not an am probably crazy or something i don't know he could be you never know but um there's how it works wow that's awesome owen so proud of you sir very well done salute you and your parents well done this is the dave ramsey show [Music] what makes our show unique is that we genuinely care about our listeners we're intentional about choosing the best advertisers to recommend blinds.com is no exception they offer high quality window treatments at unbelievable prices and they make it simple to shop blinds shades and interior shutters with easy online ordering free shipping and a guaranteed perfect fit go to blinds.com and take advantage of this week's special savings [Music] [Music] ramsey personality best-selling author rachel cruz is my co-host today uh always joining me but today is a special day it's launch day for her new book know yourself know your money the team around here in high gear with marketing and appearances rachel is doing including good morning america in the morning be sure you jump on around 8 28 15 you'll see her showing up around then know yourself know your money discover why you handle the money handle money the way you do and what to do about it a little inside baseball for those of you don't know how things work behind the scenes you would not believe that putting a title on a book and a subtitle on a book is many times more difficult than writing the book yes the crap we go through around here to figure out what how to name something uh to where when you read it you go okay that's what the book's about meaning it the title is prescriptive and uh and the title doesn't need a subtitle to explain it but helps explain it and not having a subtitle that is in itself a book i mean there are so many things violated by authors and publishers every day and we spend an inordinate amount of time emotional energy and money and creativity studying these things and testing these things before they come out we probably looked at 40 different titles for this didn't we yeah it was it was a lot because it was hard because i'm like it's kind it's not the psychology of money it's not your money personality i mean like what how do you how do you put it in four words yeah five words six words i mean it was it was it was a it was it is one of the more difficult things it's a surprising thing and you know why one of the reasons is so surprising was i accidentally was brilliant with my first book i had no idea no i really was i mean financial financial piece is a genius title that is a world-class title of a book but it's just like who thought i i just died jesus i just dreamed it up and thank you god for giving me that idea because i had no marketing team i had no body to test the title i just said you know what that's what it's about it's about having peace in your finances and everybody will understand that and it works so well and every book after then has been a labor to try to put a my worst title is more than enough that sucks i really you know and it's the worst selling book i've ever done too you think it's because the title yeah well no the book is awesome no there's multiple reasons i won't get into all of them but some are my fault some of them might be the publisher but the uh uh but the book itself is awesome once you get into it but very few people have read it there you go okay so it's just there you go it's it's a process you guys morgan is with us in jacksonville florida hi morgan welcome to the dave ramsey show hi steven rachel um so i just had a question me and my husband we bought a house eight months ago out in the country it's like a it's a really beautiful house it's on a on a small river on a small river third acre or a third yeah third of an acre but um we thought it was a manufactured home and it's actually a modular home um but you really can't tell because it has like a big porch and like a detached garage and things and so we've been like putting a lot into it because we like kind of want to be like our family home and um but we recently have just discovered that it has like a two very very large problems and one of them one of them it's not technically a problem yet but it will be a problem um in the next few years and so we were we were trying to see if we would we should stay in this house or if it would be wise to like stay in this house for as long as we wanted we were hope we were wanting to stay for like seven to nine years until we like outgrow the house but um we were just wondering if like i don't know if we could get the money back if we did fix the larger issue and so i was just wondering if you guys would advise that we should leave the house what are the two things what are the two things what do they cost and what'd you pay for the house um so we paid 156 for the house um and one of the problems we recently discovered that there was water damage in the mud room and so we that's like the urgent problem that we currently are having to go back in our baby steps into our emergency fund to fix because there's like mold and rotting wood on in the floor and um but what's that going to cost what's that going to cost i'm hoping under 10 000. okay so what's the other problem um it's a foundation problem we've recently had a lot of cracking in the house there was already a lot of cracking but the cracks have gotten wider just in the eight months that we've been here and so um the guy that we had come out today he said that with doing it at the very cheapest it was probably going to be 15 000 but he couldn't even do it and so the people that could do it are much more expensive um companies so they would they would probably be more around twenty thousand six he said that he said that he did he did say that yeah okay so you don't have enough information yet your feelings are hurt that your new house is broken okay yeah you don't have a financial catastrophe okay fix the mud room get five bids and spend six months studying the foundation before you make a decision on it foundation repair is full of the people that do it are uh there are groups of people that do it that are wonderful people and there's a bunch of jack legs that just make up crap as they're going and i think that's who you met today well he was he yeah i know he was nice but you he also didn't know how to fix it he also gave you an estimate about what another person's company would charge you which is making up crap yeah he pulled that out of his ear the other company we called the other company and we called the manufacturer of the house and they were saying that we would only because it has like this dental uh like this protection underneath the insulated protection in the crawl space he said that we would um like he said we'd have to get a specific kind of foundation specialist which there's a it's like a really small town we live in and so the closest one um you have you've had three conversations and you're ready to move okay don't do it no fix the mud room and spend six months studying the foundation getting more bids talking to more people finding more ways to fix it there's a lot of things you can do to foundations there's more than just one possible fix and there's certainly more than just one possible company even if you're quote unquote out in the country you can pay people five thousand dollars and they will come out in the country and fix this for seven i don't know i'm making this up but you don't know this yet and so you've got to gather more information when's the point that you would say no yeah you need to move that it's not worth fixing because in order to sell it you got to fix it you have to disclose yeah you have to fix it or you have to disclose it right one of the two i mean if it was an 80 000 repair on this i'd have a lawsuit against the seller for not disclosing you know at that point the people that sold it to them and the real estate agents are involved and the home inspector that missed the inspection which by the way never buy a home without an inspection and these are the reasons right here so you don't get your heart broken on the thing that you thought you were going to be in love with for nine years and now you find out you got mud room with mold and a crack foundation so foundations in different states and in different regions are sitting on different kinds of soil and there's all kinds of different situations um with you being in florida you're probably sitting on some version of sand and um so you know it's probably some version of slab and i don't know you gotta you just have to look at it and get in there and figure out what they do in tennessee the fix would be different than it is in florida but i have owned over 2000 pieces of real estate i did rehabs for a living for a decade and one thing i know is is that it's guys working on houses are kind of like doctors they are practicing that's why they call it a medical practice they're making crap up as they go and they proved that during covid uh they didn't know what they were doing and so they just did stuff and so they're practicing medicine and some of them are better at practicing than others and none of them apparently are good at math but the same thing is true of foundational people they're practicing they're trying to figure it out and they're looking at three little cracks and trying to figure out how to fix your house you need more information before you shut the economy down that's what you're going to do this is the dave ramsey show [Music] [Music] [Music] so this coming tuesday night we want to do something to help you guys kick off your new year right with money after last year a lot of people will raise their hand and say i need to reset i need to restart i need to get get a do-over i need a whiteboard i need to start fresh and i'm ready to set go so we are doing a reset live stream live from lifechurch.tv in oklahoma city this coming tuesday night at 7 p.m central time that's january the 12th at 7 pm central time it is free it will be me rachel cruz chris hogan and pastor craig groschel and uh rachel will be covering some of the material from know yourself know your money i will of course be talking with chris hogan and i'll be talking about how to walk you through the baby steps and how to do your reset and pastor craig has an incredible he's a world-class communicator uh talk on discipline that i have loved and i asked him to do it it's really good and so um they're looking forward to this it's going to be an absolutely incredible night it is completely free how do i watch you say dave well here's the deal you text the word reset 233 789 text reset to 33 789 and it is a free did i mention it's free live stream this tuesday night that's gonna be fun oh it's me great i think that the content is really spot on for where we are right early 2021 we did message of hope we did that we did a couple of things in 2020 to kind of set the course and i think that this event it is going to launch people into a new year to gain a new control over specifically their money but also their life like you said the discipline um talk from craig can be applied in every aspect of your life but really getting your money under control this year i think it's something that so many people feel i wonder i'm sure stats will come out later in the year resolutions money's always in the top three but i wonder if it even rises to the top of the top because of 2020. i'm sure i mean after that dumpster fire everybody's got to re-look this right and go thank god that's in my rearview mirror now i got to fix the mess that i made or maybe that was just my wake-up call or maybe i was doing pretty good but i want to do even better because i never want to be vulnerable again i don't want my family to be vulnerable financially because we're living deeply in debt and no money and we don't have any wealth and wealth is not valuable except what it does that's the only thing it does it gives you margin it gives you a pad between the the crazy things in life you can't protect everything you're still going to die you know there's lots of things people still get sick you can't control any of that that's not the point but wealth doesn't buy any of that anyway all it does is give you the ability to manage the process you know as you're going through and it gives you lots of options to do things and if you need to buy an airline ticket to go visit a sick relative you don't have to think about it because you've got the money but when when you need to buy an airline ticket to visit a sick relative and you're broke now you have two crises a financial crisis and a sick relative yeah and so you've got all of these things going on and this is your chance to reset and not leave yourself vulnerable again text the word reset to 33789 it's this coming tuesday night we want you there there's already over 65 000 people registered to watch this it is going to be the largest live stream we've ever done it's uh it's going to be probably 150 000 people by the time the uh the by the time the numbers are in next tuesday so we're really really excited about this all right jake is with us jake's in portland oregon hi jake welcome to the dave ramsey show hi dave and rachel thanks for taking my call sure what's up hi i have a question so this year i became debt free i followed the baby steps and i'm debt free and i've got approximately 70 000 in the bank with um that's including my emergency fund my issue is that my mother and my older brother with mental disabilities live in a dilapidated house that's owned by my grandpa and she's been living in it for 17 years without paying any kind of rent and he refuses to maintain it at all so it hasn't had anything done to it in 17 years it's currently falling apart it has mold in it it has holes in the wall i mean it's it's pretty bad i've been running the numbers and i think it's going to be about a hundred thousand dollar remodel so my question is should i buy this house from my grandpa and then put the money in out of my savings into doing the remodel even though i may not have enough right now or do i say you know forget this house and then move them out into a different house because this is an unhealthy situation and i'm not sure how to fix this situation at the moment what do you make of here i make about 110 000. how old are you 32. you're an extraordinary young man willing and able to do this for your mom and your brother with disabilities well done um so what i always think of is what is the most efficient way financially and time wise to accomplish the goal and the goal is for your mother and brother to have a place to live that's not mold infested and falling okay so um now there's two things you can do uh what would i do if i were in your shoes is your home paid for i actually sold my home at the beginning of the pandemic and now i'm renting really cheap so i lowered my living expenses by 75 percent by renting so at some point again you will buy and move on with your life in that part of your world are you single yes sir okay all right um i would do a two-step procedure if i were in your shoes one is i would move them out into an inexpensive rental immediately and just pay for it you make a ton of money and you have a ton of money in comparison to them and by the way a few months of rent is a lot less than buying a house for a hundred thousand dollars or remodeling a house for a hundred thousand dollars you can rent a long long time for a hundred grand right yes sir okay so we don't do this forever but my point is use of your cash and burning of your cash if you rented them a property for two years what could you rent it for um yeah approximately around there it would be about 1300 a month i believe okay all right and so um you know i'm probably going to cheat on that and say let's let's try to they're living in a dump now let's try to make it a thousand that's twelve thousand if you did for two years that'd be twenty four thousand dollars right yes sir okay and that's a sizable upgrade from where they are during that two years save money and buy an inexpensive property that is way nicer than they're living in now and pay cash for it and just let them live there okay and i think you could probably pull that off in two years couldn't you yes sir i think so and then you would move on with you buying a house for you later do not move in with them and do not combine your household do not combine your households in order to make this financial goal happen okay that is not what i'm suggesting okay but uh where do they live they live down in arkansas where in arkansas uh northwest arkansas around fayetteville yeah okay so you can buy you can uh 4x of their living situation for uh 75 grand to 100 grand can't you yes sir okay yeah i mean that's a palace compared to where they're living definitely yeah and just pay cash for it and then all you gotta do is make sure that the taxes are paid the insurance is kept up and um that your mom keeps the utilities paid which she's probably doing now right um barely she's got a business that wasn't doing very well before the pandemic and now it's just stuck a knife in it so it's going to go out of business so she has zero income at this point yeah how old is she in her early 50s time for her to have another income yes sir and that's uh something we talked about but if she fights against it yeah well sitting on your butt is not going to work as you know this is an option so you can be generous to a point but we're not going to be an enabler either so um you're a fine young man that's how i would do it i would rent something for uh probably less than a thousand now that i've learned a little more and uh yeah and then some you know good area but it's an expensive area yeah and so i'm good people uh but i i would uh yeah rent something inexpensively for a couple years pile up some cash pay cash for it and then move on with your financial goals but also a part of that is she needs to be able to maintain it and she needs to be able to uh get her career moving again she is in her early 50s and this is a requirement of the future of her life she has a 90 year life expectancy that's a long time from 52. this is the dave ramsey show [Music] [Music] welcome to the dave ramsey show you can be intentional about your character you can have money and a career you are the hero in your [Music] story live from the headquarters of ramsey solutions broadcasting from the dollar car rental studios it's the dave 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 hi i'm dave ramsey your host rachel cruz ramsey personality is my co-host today we're taking your calls about life and money open phones at triple eight eight two five five two two five that's triple eight eight two five five two two five happy new year america it is time for you to get a fresh start on your money and part of what we're doing at ramsey to help you do that is we're launching a brand new book today by rachel cruz it has been over a year in the making know yourself know your money is officially on sale another number one i'm pretty sure we haven't gotten the numbers in yet we won't for a week but i'm pretty confident of that um congratulations thank you it's exciting it's weird it's always weird with book launch day because again it's a project you worked on for so long and now it's out there and yeah my hope is people love it and it helps them i mean it's kind of a new way of looking at the way you handle money and it's really dives into your decision making how you're wired why you do the things you do and it's it's really exciting i'm looking down the back of it and i knew we did this but now that i look at it in this setting it's pretty impressive the endorsements on the back of the book are marcus buckingham uh dr henry cloud candace cam cameron puree love her so much yeah and well i mean you loved her back when she was on full house when you were a little kid so there you go bobby bones of course our buddy here in nashville that's a country music icon radio radio icon i guess i should say christine kane another icon and the minimalists so uh and apparently their new uh netflix thing may have dropped because i'm getting some comments on social about my appearance on it yeah i think it's out so i think it must have hit so uh those guys are great the minimalist oh they're awesome awesome awesome and they obviously love you quite a wonderful quote i did their minimalist challenge um i write about it in the book but it's fascinating because it's all about understanding so one of the tendencies is do you do are you quality or quantity when we talked about the seven tendencies earlier in the show and so i am quantity like i would rather have inexpensive things but have 20 pairs of earrings versus like one nice pair of earrings so that's always been my bent it's always kind of how i've shopped and i just i just had so much crap like i have so much stuff so there are minimalist challenges you take a calendar month and every day whatever the date is you use that number to give away something sell something throw it out so if it's the 14th of the month there's 14 items on your house you got to get and get rid of and you do it every and it's number one is so great just minimizing your life and just getting stuck i mean oh i can't remember the number now i can't do the math that quick but yeah i write about in the book but it's amazing so it's they're they're awesome and i totally believe in their message because i mean it's and again so much of even this book there's that level of not letting stuff absolutely consume you and i think that's a level and a reason people just go into debt and i think a lot of life problems masquerade themselves as money problems so you look at a debt problem and it can either be through consumption of things you can't afford there can be a contentment issue there could be a planning issue you're not planning your money well so you're using debt i mean all of it it all fits together in this huge cycle and i love kind of connecting all the dots know yourself know your money so one of the tendencies is quantity versus quality and as you say in the book neither one are bad neither one or good it's only when you go to the extreme of one of them that's right yep so the moderation is ideal right you kind of have both i knew a lady in our neighborhood who would buy coupon stuff and she had like seven thousand jars of peanut butter in her basement not quite but it felt like it when i was a little kid like enough jars of peanut butter to last you into the millennial right and i was a little kid so a long time ago so i mean that could even be a scarcity mindset too of like this fear of oh gosh oh gosh that's almost like a prepper before there were preppers but yeah but our coupon are gone crazy i don't know but i mean that's a that's uh yeah that's almost i mean that's like it is hoarding it's a borderline it was real organized so it wasn't hurting but um but yeah the uh she had the organizer lady come before she was born too but so but yeah and one of them one of the spectrums that you that we gauge ourselves on in the book is experiences versus things things yeah so would you rather spend money on an experience or a thing would you rather go out to eat or would you rather have a nice shirt right exactly and where and where the tension can be in this it's not as much as the extremes but relational tension comes up a lot in this so married couples when you value spending money on different things or different ways that's where conflict can come in you are experienced off the chain yes and winston is not no he's all things i mean even when we were first married it was like our first i think it really was our first year of marriage we'd go out to dinner and he'd always get water and i was like please just get a glass of wine or get a coke like i don't care it's just like let's get a drink and enjoy and he's like babe i'm good i'm good with my water because i can take my seven dollars and go buy a two-liter coke or a bottle of wine or whatever it is and and for a while it just always frustrated me a little bit i was like man just like enjoy it's like i'm good he genuinely was so good he's like i'm good and then as i was like flushing out this book thinking about stories i was like that's it like that's a prime example of he just doesn't really value experiences he enjoys it and it's fine but where i want the whole elaborate thing he's like no i'm good and yeah it just makes me laugh even our christmas lists our christmas lists are 100 different i'm like i want a small gift card i want a zoo membership with the kids like i want all this experience and he's like i want alexa light bulbs so i can turn on my living room when i can say alexa yeah like that's winston he's like no because for him he's like i value if i work hard and make money no alexa light bulbs were a thing oh yeah lord jesus no we won't get to the conspiracies of everything but anyways so i'm like yeah like that is that is a real thing so when you budget sit down as a couple especially if you're getting out of debt and you're having to make sacrifices like where you're putting your money there can be tension so there's just the warning flag of that that that's where conversations can come into play saver versus suspender yes that's a tendency and again extremes not good you don't want to be a hoarder on the saver side you don't want to spend everything you make on that side but being able to name it so are you experienced or things i'm experienced your experience okay yeah are you quality or quality or your quantity or quality your quality yeah yeah like i don't i don't really care um you know you buy a lot i do you're a spender i'm k i'm a spender i'm definitely a spender but i uh but it's not quite but i yeah i'm not gonna if i go to buy a whatever i want the best one a pair of boots you don't need like yeah i don't have no desire to have six pairs of boots i really have one really good pair that i can wear the rest of my life yeah get some good cowboy boots yeah that's i've got a pair that i've had for 20 years yeah there you go that's it that's it we'll probably have them for 20 more but and they look great so shut up yeah sure they do sure they do sure they did polish up the whole old-fashioned thing we used to polish our shoes not throw them away but yeah so know yourself know your money rachel cruz's new book is out on the stand you can find it anywhere great books are sold amazon daveramsey.com rachelcruise.com target barnes and noble books noble walmart uh you can find it it's out there good morning america in the morning be watching at around 8 15 8 20 rachel will be on talking about the book so check it out this is the dave ramsey show [Music] folks it's an honor to tell you about the army national guard not only are they big supporters of our high school curriculum but they also give you the opportunity to impact your local communities whether your goals are to get an education serve your country or have a better life the army national guard can help get you there plus they offer unbelievable financial benefits secure your future today visit nationalguard.com to find out more [Music] rachel cruz ramsey personality is my co-host today here on the air it's book launch day for her new book know yourself know your money there is a virtual launch party january 6th that would be tomorrow night for most of you in january 7th thursday night wednesday and thursday night two different virtual launch parties at 7 p.m central time and that's at rachelcruze.com you can go live and ask her your money questions and participate in this book launch if you'd like we'd love to have you again just go to rachelcruze.com and sign up for the virtual launch party wednesday or thursday night this week at 7 pm jesse is with us in grand rapids michigan hi jesse welcome to the dave ramsey show hi thank you so much for everything you've taught um we are just having a lot of fun my husband and i um built our dream house four years ago we went into the steps the baby steps about 15 months ago and i didn't think we'd get through them as fast as we did but we're already on step six wow great so yeah we feel good so i'm kind of a nerd i punch the numbers every day and i've gotten a little addicted to this mortgage payoff calculator good and so you know i arbitrarily picked a number to save for our two kids for college they're currently ages six and eight and i'm we're putting 150 for each kid into an esa but i'm seeing if i you know i don't want to borrow and rearrange these steps because i know that's my pet peeve when people call in but can i or should i lower that dollar amount in the esa in order to put more on the house or should i just leave that be just stay calm and just pay it off we're currently saving cash for a barn so anything extra right now we're putting aside to build our barn i'm just wondering your thoughts how much money do you guys have saved in the usa so far uh each in the esa are only about i'd say four grand for each kid what's your household income about 200 000 and what do you owe in your home 217. what's the barn cost uh we estimated about 60 and we have we have 25 000 saves currently okay so um 200 a month is hundred 2400 a year that doesn't really move the needle on barns or houses okay i mean you can if you want but it's not really going to move it that much what's moving it what has moved you along so fast is yours attention to detail and your intentionality i mean you have this wonderful income and you're using it to accomplish your financial goals way to go touchdown so technically to answer your question about rearranging the baby steps you know we just say baby step five saving for college we don't say how much because it ranges so much whether you've got little kids older kids what's your household income is all that kind of junk as to what you can put in and still accomplish your baby and still be putting something towards baby step six but um if you wanted to back it down to 50 it's okay but my point is it's 2400 a year yeah i just like i said that mortgage calculator on your website is amazing and you can see what an extra you know we're putting we're paying 800 extra a month on our mortgage currently and giving for a bargain yeah so you're estimating if you stay on your current path the barn will be done and the house will be paid for when um two thousand in about six years five years five years that's what i was going to guess okay so doing this doing this changes it four months okay okay i made that up but i'm not far off it might be it might be five months it might be three months the dave calculator it's 20 but it's 2 400 i mean over five years so that's ten thousand dollars that's right yeah it's not it's not going to move the needle on it's not gonna change if it changed your payoff on your home by five years or three years or something like that yeah maybe but when he changes it by a month or two months right or three months now i wouldn't do it jesse you're what's your husband what's he saying is he is he on board too or is he kind of like oh we can kind of chill a little bit oh yeah no he he started listening to dave in a am radio van when he was a landscaper when he started dating so he's he's so chill and he just says you know the growth that we'll gain in the esa is better than the low interest on the mortgage keep the growth on the esa account and keep it edited yeah so the technical baby step answer is you can do either i probably would stay with your current plan because i don't think it moves the needle that much to change it and i think you'll be glad you put money into the usa i'm really not even worried about the growth on the essay versus the mortgage bound you know that that you know that would lend you to say i'm going to load the essay up i'm gonna put even more in uh but right now you you're touching the base which is what you want to do on baby step five you wanna do something towards kids college and then you moved on to do the other stuff so yeah and she's she's an example of the nerd not quite on the extreme because i don't think you're unhealthy by any means in that sense but she's running numbers she's calculating it's almost like you want to be gazelle intense through these baby steps and you're not supposed to you're supposed to back off so the fact you guys are saving for a barn i think it's awesome like yeah you can just yeah take a breath even though you're crunching the numbers and you're seeing the difference of what you're paying just an interest even for two years of a home having a mortgage versus not i think all that's awesome that you're feeling what a free spirit doesn't understand that is that when nerds like uh jessie and me are running these numbers that's actually fun for us well she said i had a lot of fun we're not we're not we're not fretting it's not bothering us this is like what we do instead of watching netflix we would rather run numbers on something it's just more fun than watching an oprah rerun you know so we actually get joy out of this i know it's hard for people to grasp but don't think that way but all the nerds are out there going yes spreadsheets rule yes and so you know but that's you know again if you turn it if you turn it all the way over to where it becomes an obsession then you're wrong and she didn't no she didn't that's why i said she but i'm saying she's a perfect example of a nerd yeah because she's loving it and her husband's just kind of like hey we got this yes yeah and so very very intentional good job jesse you guys have done a wonderful job with your money so proud of you yes i don't think there's oprah uh right anymore oh well probably somewhere ben is in niagara falls ontario hi ben how are you good how are you guys better than i deserve how can we help um well i have a bit of a morality question for you um so my wife and i uh are trying to pay off our debt so i used to be driving uh like a really cheap junker car um and now you you always say that like mama gets a good car right and um we actually moved over new years like christmas new year's now she lives she lives or she's five minutes away from her work and i i have about a 40-minute commute so i've been driving like our good car and she's been driving to junker um it just it doesn't quite feel right to me that that it's that way but i'm worried about the reliability of the junker obviously well i don't know what the law is in canada but in the united states it's illegal for you to drive the good car [Laughter] i'm kidding it's federal law mama gets a good car um does she care ben is she good or does she want them no yeah like she she doesn't care this is just like this is just something i i have a problem with you have like a conviction that like oh you feel bad that you're driving the nice car and your wife's not i think you're okay because you guys are only gonna be in baby step two for how much longer um about 10 months yeah why don't you switch every other week yeah i guess you could do that i don't know i just made that up i have no idea but i mean it has to do with it has to do with how everybody feels about it and more than it does the reality obviously if the stupid car breaks one of you's got a problem and canada is a bit wee bit cold this time of year so um you know i you know you don't want her stuck out in the cold for sure i mean that literally could be dangerous uh depending on your situation so but she's five minutes from work i know it's still compete no yeah absolutely but the i don't walk four minutes in that stuff but the uh um yeah i you know you can switch out or you know as long as the thing is not giving you any trouble you can drive it i i it's all it's a joke but it's about marriage relationships and you know understanding sacrifice all the way through this thing so you're not an evil guy either way ben it was a joke but everybody gets the joke because mama gets a good car has a sense of gallantry to it civility to it now this is the dave ramsey show [Music] you know healthcare has gotten to be ridiculous it puts people um you know on the brink and so it would have put us on the brink had we not had chm chm saved our life same problem financial lives christian healthcare ministries or chm is not health insurance but it is a budget-friendly option and the original health cost sharing ministry for christians learn more today and check us out at chministries.org that's chministries.org [Music] [Music] [Applause] rachel cruz ramsey personality number one best-selling author launching a new book today know yourself know your money discover why you handle money the way you do and what to do about it is my co-host today our question today 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 with the new promos they run every month you'll save even more use the promo code ramsey to get the best possible deal today's question comes from marylee in nevada i just paid off my student loans back in june i just finished the legacy journey through ramsey plus and would love to begin a giving category and my monthly budget and baby step three i already give 10 of my income as a tithe to my local church but i am wondering how to create something a little more how do i address the numbers is there a recommendation on how to start giving past your tithe do you have any recommendations on which organizations get started with or even how to begin giving i want to do my research before i give money away if that makes sense yeah that definitely makes sense um i mean we we always recommend 10 no matter where you are in the baby steps and the whole process the baby steps is to give a little until you can give a lot and obviously that a lot huge explanation point is on baby step 7 once you have your house paid for you have no debt kid's college is taking care of your funding retirement then you're able to give a ton of your income because you have a lot of all your income coming in because you have no debts so if you do still want to start giving a little bit more and you're on baby step three i'm i think that's great you can i would up it maybe just a few percentage points right now i really want that emergency fund for you because once you have that stability then you're going to be able to give beyond that 10 for sure so i would recommend just a few percentage points if you want to right now a lot of organizations especially if they're 501c3s they have to publish their budgets on their website they have to make that public so you can go in and look to see how much of the money coming into the organization is going to fees or administration or to the actual mission of what they're doing you can look at all of that get a feel talk about it i mean we take giving pretty seriously here at ramsey what we talk about is how much you spend on your retirement account and investments is the time you need to spend on what you're giving i mean you as a as a believer you have been given resources and to put it back out to help people you want to make sure you're doing it really efficiently so i think you researching organizations is smart um what to get started with i mean anything you're passionate about that's i think one of the best things about our world today is through the internet social media there are so many organizations out there anything you you love and have a heart for whether it's foster care or rescuing people out of human trafficking digging wells for fresh water in africa helping the homeless community i mean like anything that you have a heart for there's probably an organization that helps with that mission so just rest i would start there of what you love yeah and we have chosen to give substantially to a few with the ramsey family foundation not to give 500 to a bazillion different people uh and spread it out then instead we'd rather make an impact on a handful and so if i were in your situation i'm merely just getting started i would just pick one for now there's always more valid needs and valid ministries filling those needs then there is money free that you have anyway there's always more and so um you cannot be everywhere and don't try to be everywhere don't dilute and don't give a dollar to 500 organizations give 500 to one or whatever it is you're much better off to do that your life's much simpler you won't get as many emails you won't get invited as many dinners you get charity fatigue you do you do you get philanthropy fatigue and uh so you're not gonna get there with all that just keep it real clean and real simple and do some research like you're saying you're gonna do and and the way we pick the ministries that we support we usually know something about them or they're one degree of separation personally one of the ramses does do and or one of us one of the ramses has a passion for that category uh and that's how they end up in the uh it is a very personal thing with ramsey family foundation is how we do it with our giving as a family uh and so that's how we would recommend you do it and i you know in your case once you finish baby step three beyond the tithe if you want to just put a flat a dollar amount to start and go okay i'm gonna do 500 more a month or whatever just make up a number i don't care what it is once you get further along i'd recommend a percentage in addition to the 10 on your tithe i would give another x percent two other things and that's how we do it at our house and then no matter what your income becomes over the years you've still got your formula and you'll always be as you make more you'll always be giving more automatically and you don't have to stop and rethink and all that kind of stuff you can choose to increase your percentage if you wanted to later on but that's not always necessary either don is with us in grand rapids michigan hey don welcome to the dave ramsey show hey how's it going great man how can we help a question about um where to put my retirement fund so i'm 11 payments away my wife and i are 11 payments away from being out of our inverted 3b um and then we will have you know we'll be right into the retirement section of it so so if i know your order of retirement typically but if i max out my raw 401k at work um she's a contract bookkeeper so she can do a roth um 401k set up for her and then and then um we could do roth ira a roth you know iras correct but i have an option at work to do at hsa so i'm wondering if i should do an hsa because that's kind of like double tax incentivize i don't pay taxes going in or coming out i know i don't get the growth that i would but i'm just trying to figure out how to best place that last a little bit the hsa if you use it for medical is a double because you take the tax uh deduction it's not really because you take the tax deduction and then you don't pay taxes on it as you use it and so it's really just once and you can get the growth on it uh yeah i check out a company called health equity that's who we have our hsa savings with and they have mutual fund options i have never used my hsa for health issues knock on wood uh consequently i've got a couple hundred thousand bucks in it because i just load it up every year it's yet one more way i can max out things and if once your home's paid for you know you max out everything so you you take advantage of everything at your fingertips and that would be both roths both 401k roths and the hsa but you get a tax deduction when you go into the hsa and you don't pay taxes on it when it comes out so that is uh like tax-free use of that money if you use it for health and you would you use that before the the roth ira no i would use the roth first because it's growth it's tax-free growth regardless of what you use it for okay that's what i found just want to make sure thank you yeah hey thank you for the call open phones at triple eight eight two five five two two five kerry is in dallas texas hi carrie happy new year hey hey dave happy new year to you too and thanks for taking my call sure what's up um okay so um your problem child i have lots of credit card debt um to the tune of 70 000 wow in credit card debt and yeah and i um you know purchased my first home um four years ago almost and lots of things went wrong with it but that wasn't all the debt and i was given advice from a friend a year ago to just stop paying the credit card debt they were all zero percent and all the interest rates started i knew they were about to skyrocket and it was going to get to the point when i couldn't even make minimum payments anymore and so they just said quit paying just stop paying and i did try to call several of them and they weren't willing to negotiate anything with me they they didn't want to talk to me because i was current on everything yeah and i had always been of course so now they're all coming full circle all right i'll tell you what hold on we come back from this break we'll get the rest of your story and see if we can help you this is the dave ramsey show [Music] [Applause] [Music] [Music] [Music] rachel cruz ramsey personality is my co-host today open phones at triple eight eight two five five two two five we're talking with carrie in dallas texas she ran up seventy thousand dollars in credit card debt as the interest rates went from zero to full-blown as they always do she was unable to make the payments her friends suggested she stop and that's about how far we got in the conversation what else is going on miss carrie yes sir well i started working your program last month i reached out and a financial advisor found me and we've already met she's got me on a budget um she i've done plastic surgery i've done all her homework we're meeting friday again for the new update things are actually going great i was gonna say you actually while you're out of control you're starting to feel in control i'm more in control i mean that's the first time i've ever been on a budget before um i i checked out every dollar but i think with all this default debt i felt that you need a budget or y-n-a-b.com uh was better for me i don't because of all this unknown i don't know i don't know um okay yeah it's gonna be much better you just need to run two dead snowballs is all okay so i've got all my default debt um i i settled or i just settled and paid two of them i knocked two of the cards off myself i got summons for two others through the same collection agency or law firm and um i did get a lawyer for the first one and could kick myself because i realized i could do it myself um so we he settled for me on the first one and then i guess it gave me the template to know how to do it um so that's what i paid for but i settled the second one my question is um on the debt snowball with those they're going to be coming at me you know the different amounts are coming at me and once it goes i get a summons i've got to settle those out no you don't so i don't okay um they can sue you but they can sue you but in texas they really can't do anything well i thought they could get control of my bank account which would be not in texas um not in texas i thought they can't can't garnish your wages well you don't need that you don't need to give them your bank account information right well i figured i could just switch bank accounts if that were the case yeah okay yeah so okay we're not going to let there we're not going to let them create the emergency we're going to let you create it so all of these this entire 70 000 is in default right yes sir okay and what other debts do you have i only have my um my home loan which i owe 178 on that are you current car i am current i'm current on everything else okay the car 707 000. perfect and 2012 my income is 78 000 okay and i'm also working i've been doing ubereats on the side delivering and i was able to pull in 500 last week so where'd it go um i'm planning to just keep attacking that as well you're inspiring i mean you're inspiring you made a huge mess and then when you decided to do something about it you got a template from the lawyer you met with a financial advisor you're working your plan you picked up an extra job you made a budget you're doing everything you are really on fire i'm so proud of you for what i do so i am and i just want to keep this fire and take care so as you got as you get little summons if you want to stop and settle those that's fine but if you get one that's a huge one just let it sit there's one coming up it's like 8 000 you know 8 200. and i told them i spoke with them on the phone and she wasn't willing to talk to me without she wanted me to make a good faith painter so we're not doing that today um i just need to know what you would be willing to settle for so i can you know plan for that and be able to give that to you in a month or two and she goes i can't do anything with you right now you know then hang up and so i said listen go ahead and slam the phone down just for the satisfaction just for the satisfaction the woman if she's going to act like she's a test pilot for a broom factory treat her that way okay that was her decision not here it's not you know that's all the technique that's called intimidation and don't don't let them do that to you you got a plan you're on fire you got a system and so what you're gonna do let me here's what's gonna happen okay you have three different uh summons and or collectors coming at you and you have two thousand dollars sitting there this is in the future this is in the future what you're gonna just you're gonna mess with every one of them you're gonna go i got two thousand dollars who wants it first if you take it you will get that as a settlement on eight thousand dollars that's behind door number one if you don't then we're gonna go to door number two and whichever one of you calls me back first that's who's getting this money i'll get back to the rest of you later when i got some money and this is a game show baby you know and just have some fun with it right and then you know how to settle it you've got the template to do that get it in writing and do not allow them electronic access to your checking account that way they don't know where the flip it is right and they don't clean you out on the rest of your plan but i did settle on this law firm i did the two that i settled on i do not need to pay online or anything like that or because it is in a settlement am i safe to just go online and pay them or do i need to do the cashier's check every time online means they have your bank account information yeah i would think they would do not do that don't do it okay no okay that's what i thought i just wanted to ask because they they it once they have that if they're unscrupulous and some of them are they can turn around and clean out your bank account okay so you're going to get around to working with everybody we're not trying to ditch them we're not trying to be a deadbeat we're just not going to be abused and we're going to play them against each other until we get through this so i need to start with my default debt snowball smallest to largest on that i do have three cards that are current um i'd knock them out if you can't get a smaller amount i'd knock them out first yeah go ahead and knock them out and you know again i thought that my advisor was saying telling me different and now well normally normally what we tell you what your advisor was trained to do and normally what we tell you is run two debt snowballs run your current stuff and pay it off first and let all the stuff that's in default just sit and once you've gotten rid of the car payment and the three active credit cards everything but your house then that gives you more cash flow to deal with the stuff that's in default that's our normal routine you got a few of them coming at you right now and so if you want to uh kind of dodge around a little bit head fake and jump in and out of that and jump over and knock out one of those summons that's okay there's not a bad thing here what i don't want you to do is i don't want them threatening you or giving you a hard time or bossing you around to become the priority instead you set your priorities you have power over money for the first time in your life carrie use it right you make don't worry about them taking me to court then because sometimes you feel pressure to settle nope before court we can settle after just as good not worried about but i thought that they would do the full amount plus court costs well they will but we're also going to negotiate that down to 10 cents on the dollar okay and they're going to be happy to get it junk debt it is junk these aren't junk debt it is junk debt it's a credit card that's in default it's called junk debt okay that's what it is because they all say they're representing the card itself it's still well i don't give a crap third party they either own it or they don't but when they get ready to sell it they're gonna sell it for a nickel on the dollar right and so that's what it's worth to them it's junk debt it's it's it's almost a year since they've been paid they have their probabilities they know their probability is almost zero it's five percent chance they're going to get paid and the fact that you're working with them gets them all excited you actually have a phone number that works everybody else in their database doesn't i mean that's who they're dealing with and so you're you're like a unicorn for them they're so happy to talk to somebody to abuse you so cara is great craig carrie you're doing great listen if you're not in ramsey plus i'm gonna put you in it hold on kelly pick up and make sure you're tied into that because you were doing everything right to straighten out your life you are doing a full reset which is what we're doing next tuesday night guys you don't want to miss out on that it is a free live stream event next tuesday night at seven o'clock text the word reset to dave ramsey dyer text it to 33789 reset to set 33789 and join the new upcoming live stream next tuesday [Music] [Music] welcome to the dave ramsey show you can be intentional about your character you can have money and a career you are the hero in your story live from the headquarters of ramsey solutions broadcasting from the dollar car rental studios it's the dave ramsey show where dad is dumb cash is king and the paid off home mortgage has taken the place of the bmw as the status symbol of choice my co-host today on the air ramsay personality number one best-selling author and my daughter rachel cruz it is book launch day at ramsey which means we are in high gear all over this building lots of media hits lots of things happening and rachel's doing all of them the new book know yourself know your money hit the shelves today a labor of love for over a year it takes to put one of these things together and get it out know yourself know your money discover why you handle money the way you do and what to do about it and rachel our the hour your seven money tendencies have been one of the things that people get their hands around first in the book it's not the only thing that you teach about knowing yourself to know your money but the seven tendencies are something that people gravitate to immediately that and how you grew up i was going to say the the childhood money classrooms the tendencies and even the fears the money fears is something people relate to a lot yeah the tendencies are fun just because there's not a right or wrong it's just understanding and unpacking okay here's where i tend to lean when it comes to my money and it just gives you a level of awareness and to say okay i can now figure out when i'm being unhealthy in that area when i'm when i'm okay and functioning well it gives you kind of this guidepost and another level of this which i love is you start to understand other people in your life your spouse your parents your grown kids your friends it gives you a level of empathy to say okay they're different than me when it comes to money not right or wrong necessarily in these tendencies but they're different and here's their view they're looking at money a little differently than i am okay and so the seven right quick rattle them off duet oh it's like the the test okay nerd versus free spirit spender versus savor experience versus things uh quality over quantity or versus i shouldn't say over um abundance versus scarcity safety versus status which is why you want money is it safe to your status and the seventh is on giving so it's more calculated or emotional giver which one you are okay so those are big and then the childhood classrooms i think that those are really fun there's four of them of understanding how you grew up with money so money was communicated in two ways in a household it's communicated verbally and it's communicated emotionally so the first money classroom is the anxious money classroom and this is where it's verbally closed and emotionally stressed you can feel in the air but it's not talked about that's right so you probably felt tension at the end of the month when bills were paid but you didn't know why but tension around money classroom number two is the unstable money classroom so this is where it's verbally open but emotionally stressed so if you grew up in this classroom you heard fights about money your parents may have fought with extended family members about money they may have had the same money fight over and over and over again but man it was loud and you knew it was happening classroom number three is the unaware money classroom so this is where it's verbally closed but emotionally calm so never talked about but it wasn't an issue and so your head was probably in the sands people that grew up in this classroom really didn't even think about money until they were out on their own and they realized oh wow i have to learn a lot and i have a little bit of catching up to do and then that classroom number four the last one is the healthiest money classroom and it's where it's verbally open and emotionally calm so you could have ten dollars in this classroom you could have 10 million but it's the matter that is being controlled there's a plan in place it's agreed upon if you're if you have parents that were still together and it was just it was calm but it was also talked about money was talked about and communicated so that's the fourth money classroom that i really want to push the reader to move currently to with their family now but looking back to your own childhood to say okay here's how i grew up because every single one of them come with some red flags of okay this is this is an area i'm probably gonna have to overcome because of my childhood classroom yeah and most people don't grow up in the fourth one no most don't no i was on a show yesterday and they had their whole staff speaking in which was so fun on the youtube show and the host grew up in classroom two her husband grew up in classroom one uh that we had one of each of them which was so interesting one of her producers was classroom three and actually one of the girls was classroom four and her and i both because that's i would say i grew up there somewhat classroom two but i don't remember that because you said there was a lot of stress but i was born the year of the bankruptcy um but really even that classroom four just because your parents are smart with money doesn't it's not a gene you're not automatically gonna be smart with money you have to work at it too and it's that classic larry burkett line that you spend the first five to seven years of your marriage trying to obtain the same standard of living as your parents but it took your parents 30 years to get there so there can be a little bit of a level of entitlement in that classroom for if you're not careful so when you're in classroom four you still have to be safeguarding that okay i still have to be making decisions on my own i still have to be working hard and it's up to me and my hard work to stay in that classroom for yeah nobody's gonna do it for you you're what's known as a grown-up now yeah so yeah so that's a i think it's always interesting to think about how you grew up and how it affects you and what's fascinating too is talking to people people either mirror what their parents did unintentionally or they have a visceral response and they do the complete opposite they do the complete opposite so it's good just just to be aware that's true with parenting style that's true there's a lot of things yeah yeah the book is know yourself know your money by number one best-selling author rachel cruz this will be her third best seller discover why you handle money the way you do and what to do about it know yourself know your money it is on bookstore shelves now it is available we are doing a virtual book tour a virtual uh launch rachel's doing a hundred and some odd media appearances in about a four day period of time including good morning america in the morning be sure you tune that in at about 8 20 she'll be on we're doing a virtual launch party for the book you can join rachel uh january the 6th that's wednesday and january the 7th that's thursday both at 7 p.m at rachelcruz.com live just go to rachelcruise.com there'll be a live feed there and you can ask her your money questions so join her you can sign up for the uh uh you know for the launch party or be there january the 6th or 7th at 7 pm jump in rachelcrews.com make it part of your lineup we are also working to help you get started on your new year this year and after 2020 everybody needs a reset we need to relook we need to reset emotionally reset financially uh reset everything and if you want to reset we're doing it this coming tuesday night and so lots of things going on all of this that we've mentioned so far is free so be sure you check it out uh we're doing a reset event live from oklahoma city rachel cruz chris hogan me and pastor craig groschel we'll be doing it from his church at lifechurch.tv rachel will be speaking i'll know yourself know your money pastor craig on discipline chris hogan and i are going to walk you through the whole reset process and the steps to take exactly what to do this is a 100 free live stream it is next tuesday night january the 12th at 7 pm this coming tuesday night january the 12th at 7 00 p.m and uh just go to dave ram you can to to register for the free live stream you do need to register or it's not going to happen for you text the word reset to 33789 that's 33789 and for those of you in oklahoma city we have a few seats just a handful they're only 20 and they may be gone by now uh but of course it's limited because of distancing and all those kinds of things to meet the guidelines and stuff so go to daveramsey.com events and see if there's any seats available if you're in the oklahoma city area we'd love to have you come out tuesday january the 12th for this reset live stream with four well four people who are well known for speaking on these subjects i guess that's the best way to say it this is the dave ramsey show [Music] what makes our show unique is that we genuinely care about our listeners we're intentional about choosing the best advertisers to recommend blinds.com is no exception they offer high quality window treatments at unbelievable prices and they make it simple to shop blinds shades and interior shutters with easy online ordering free shipping and a guaranteed perfect fit go to blinds.com and take advantage of this week's special savings [Music] rachel cruz ramsey personality is my co-host today this is the dave ramsey show open phones at triple eight eight two five five two two five josh is with us josh is in mount vernon ohio hi josh welcome to the dave ramsey show thank you for having me how are you guys doing today better than we deserve what's up i have a question for you guys my wife and i finally finished off while we're finishing off this friday for baby step two yay how long did that take thanks 26 months all right good for you thanks um so we are moving in and we're going to be uh doing our uh baby step three which is saving you know our uh three months for our emergency fund and we also are home owners uh at the time it wasn't a very wise decision to purchase a house because we went with a three percent conventional for a 30 year um with a rate of 4.125 percent um we're going to get to a place where we want to refinance as with rates being what they are around 2.2 to 2.9 percent in our area um and i did not know if it would be best to go through um getting the fully funded three months saved first yes um and then save up separately yeah because you don't have enough equity to roll your closing costs into your refinance do you um i'd say no if you don't and i don't think you do probably because you didn't put enough down so i imagine i would imagine you can't if you can roll it in you can do it whenever you want but if you got a cash flow you're closing costs you got to do that after your emergency fund is done okay so let's treat that more like a 3b it would just be something you purchase while you're doing four five and six like if you bought a couch or you upgraded a car or you did something else in this case it's closing costs on a loan okay but let me tell you how i did that uh from a critical thinking standpoint okay okay if it's not an emergency it doesn't go before the emergency fund yeah that's how i put it after the emergency fund this is this is a good idea but it's not an emergency okay so even if rates fluctuate a little bit which i'm sure they will still better than the 4.125 exactly but definitely wait until after we're done the number of times rates move more than one percent in a four or five month period of time is almost zero okay they'll move an eighth a quarter something like that one direction or another but they just really don't move that much that dramatically and you're gonna be done with that baby step three pretty quick well done sir yeah pretty good i mean but you would say just still go ahead start baby step four though like start funding retirement yeah i don't i mean i'm okay if you did it as a baby step three b yeah you know it and treat it like a down payment thing if you want to but it's not an emergency right because see let's let's say you took five thousand dollars and that's the only five thousand dollars you had and you need a refi and then the transmission goes out on your car and you lose your job and there's a pandemic right you're screwed you know and so that's how you know that it would have been a bad idea that's right you run it through a stress test yes a hypothetical stress test in your mind and then you can tell oh i should have done the emergency fund first it's more important than saving a couple points or or a quarter of a point on my interest rate by letting it ride a little bit and that's the interesting thing about money and talking about it in this way because it all it sometimes trumps math right like the idea of like well interest rates and they could fluctuate and it's not a math problem no it's not it's safeguarding and continuing to put that strong financial foundation under you yeah and you know in that same light baby steps one two and three are you defy everything you you put math aside you use the debt snowball you stop your 401k even with a match you um you know you defy all the mathematics of expenses because your house is on fire yeah you're in debt and you have no money you are an accident looking for a place to happen you are normal in america and normal sucks 78 of americans live paycheck to paycheck don't live that way so one through three is the house is on fire so you don't we don't sit and discuss theory when the house is on fire you get your butt out of the house and you get that you get yourself out of debt and you get that emergency fund in place then when you break through baby step three that's when you cannot be gazelle intense anymore and instead of intense you're intentional and you start saying okay now we gotta start talking about retirement kit four we gotta start talking about kids college five we gotta start talking about paying off the house six we gotta upgrade this couch this spring is sticking me in my butt every time i sit down here we gotta get a car it's awful this beater we've been driving while we were getting out of debt is horrible it's time to get a car that don't have a name you know and so on right and so you you start moving up in a few things here or there but you're careful and you're intentional but you don't have to live on beans and rice rice and meats oh by the way that's when you would go on vacation is only after baby step three and that's when you go out to eat is only after baby step three you shouldn't be going out to eat i know people think i've lost my dad got mine but let me tell you what when you have a pandemic hit and you have no freaking money because you've been in restaurants you look like a freaking fool because you are you shouldn't have been going out to eat you spent all your dad gum money in a restaurant yeah and i don't mind going out to eat i love going out to eat you love going out to eat the ramsays love to eat we are we are social animals but um i'm getting an email to commercial break from my wife about going out to eat with another couple you know i mean this is normal but it but the problem is when you're broke it's foolish because it is not economics that causes you to eat out it you know ninety percent of what you spend at a stinking restaurant is not the food you could have bought all that food for 10 or 15 at the store and gone home and cooked it oh and then made four other meals after that well yeah the cookie yes a whole bunch yeah and then got leftovers in the whole bed god help me for sharing ramsay but um with her leftovers oh she's still after all these years but um like we can't afford home with food i'm like mom those green beans no one else now i want to eat like no one else stop it but um so yeah but the the the uh the point is is that you need to treat the first three like you're in an emergency like it's on fire and then after that you're intentional which means you're thoughtful you're thinking about okay if i do that i won't be able to do this and what's more important would i rather do my kids college than that couch or whatever you know we got to get a couch that's ridiculous um family's not been on vacation in five years we're going to spend a reasonable amount and go on do a decent little vacation of some kind if you could find a state that's open and um whatever right yes you can start you can you know you don't relax to the point that you go back to stupid land but you relax to the point that you can enjoy a few of the creature comforts again when you're in four five and six yep but that idea though that it's so behavior-based especially baby steps one through three it's not the math thing like we're talking about earlier like it really is it's your behavior and getting ahead and what ends up happening when you actually get traction for the first time in your life and by the way it's not just a ramsey thing it's not something dave ramsey or the ramsey organization came up with it's a data thing i mean when we study millionaires the way they became millionaires was not math it was managing behavior none of them were i mean virtually none of them 90 something percent of them were not uber sophisticated had the figure had figured out the idea of how to get rich at bitcoin or how to get rich or beat the card game in vegas or they weren't day traders or they weren't they weren't they didn't spend their whole lives with their nose in a mutual fund book they didn't do any of that they just loaded up their 401k paid off their house and they really did not were not very sophisticated a lot of them weren't that super efficient with their math with the math on the investing they didn't spend a whole bunch of time studying it sometimes they had an investment advisor sometimes they didn't but they didn't sit and wring their hands over the 12b1 fees in a mutual fund and they didn't set no load versus load the great comparison they didn't go through all that crap they just put money away get it yes did it while everybody else is talking about their freaking theories and they're broke these guys go and do it it's a do it thing it's a behavior thing and that is what makes people wealthy and what gets you away from the wolf's door in stuff when stuff like a pandemic hits yeah and it's the long game there's no short-term fix no yeah beverly seals said it no shortcut to any place worth going uh that's a great quote it is a good quote no shortcut to any place it's worth it it takes takes the time but it's worth it yeah it's you know there's not a pill to make you lose weight and there's not a pill to get you out of debt there's not a microwave you just gotta freaking do it this is the dave ramsey show [Applause] folks it's an honor to tell you about the army national guard not only are they big supporters of our high school curriculum but they also give you the opportunity to impact your local communities whether your goals are to get an education serve your country or have a better life the army national guard can help get you there plus they offer unbelievable financial benefits secure your future today visit nationalguard.com to find out more [Music] so [Music] in the lobby of ramsey solutions on the debt free stage joshua and julia are with us hey guys welcome happy new year happy new year you're the first in-person debt-free scream of the year awesome awesome well done i love it how much have you paid off 347 thousand dollars in six and a half years roughly wow and your range of income during that time of 155 000 to 250 000. cool what do you guys do for a living i'm a nurse in ethicist i stay home with kids okay great and i'm going to guess with a length of time and the amount of money you paid off your house we sure did i've been waiting so long to hear you say that people are in front of me that's right so what's this house worth right around 350 000. okay and it's yours and it's all sorry bye guys amazing i love it way to go you guys i love mowing the grass every blade is ours cause it's yours that's how that works i love it i'm so proud of y'all how old are you i'm 35 33 and you're a paid for house yes sir you are officially weird man how many 35 year old friends do you have with a paid for house a lot of them tell us to not do it yeah yeah that's crazy okay so what made you do this like i understand they're getting out of debt but it's like we're going to just we're going to hit the gear and pay off the house right so we're both fbu babies i grew up on the envelope system and josh did a 7th grade algebra homework from the back of the fbu classroom so it was a no-brainer obviously to pay off the student loans as soon as soon as he graduated from anesthesia school and we took a little bit of a break started a family and then it came to where we needed to decide do we put an extra sum of money toward retirement or do we pay off the house and of course we got a lot of people saying why would you pay off your house don't pay off your house at that time we were leading an fpu course and through that we became more accountable to the dave ramsey plan and we became more of a team budget meetings were more of a joy than a burden or a dread and it was really always exciting to me but not so much nerd free spirit let's just establish and so um with uh with leading that class we decided all right we're going to pay off the house but even at that point i was i was a supporter but i wasn't an equal partner in in the process so i wasn't really gung-ho about it until about february of 2019 when we had received a late advent calendar from our friends in germany and we're all sitting in the living room floor pouring over these german chocolates and goodies when josh said how would you guys like to take a trip to germany which of course the response was i bribed them i needed a bribe this response was yeah yeah we want to go to germany and he said all right when when we pass the house we'll go to germany well so at that point we became we became full partners in this and um so the interesting part though is when god came into it um the very next month we we had decided obviously to pay off the house but whenever i was starting to do the numbers like i always do i realized that that was going to be a lot of money to pay off 198 000 in about well it was january 2000 we're going to do it by january 2021 yeah that was the date we decided at that time that february of 2019 um we had 198 000 left in the house and i was like this is this is outrageous how are we going to do this so i started talking to god and i said god if you don't mind just give us more work not more money more work and um that very next month in march i had five co-workers that put in their notice to leave oh my god and i sat down with her and i said i'm not sure if god sent them out of my work but it is an opportunity for me to get all the overtime i could and so i'm amped all my every vacation i had for the last two years every post call day which i have most of them off i worked all of them many saturdays i worked and uh so i have not been part of jeremiah's life pretty much in my um so for that whole 18 months uh it was gung-ho yeah and uh so god provided um that opportunity for us and we got it done in time actually four months early i guess wow i mean while we're learning german so that we can keep him accountable to his part of the plan his bribe yeah the kids are really that was a pretty heavy sacrifice all those hours it was um but now you're 35 years old with a paid-for home was it worth it i would never go back absolutely uh the hardest part was uh just parenting is hard enough alone or in and of itself but parenting alone is even harder and it felt like that some nights when i was the only one taking them in bed most of my hours were 24 hour at 16 to 24 hour shifts i mean i'm i'm working call and and then getting up the next morning and working 10 12 16 hours so it wasn't just like monday through friday seven to five it was constant but because because we paid off our house we were able to say yes to an opportunity that we would have just not even batted our eyes at so uh august september or august somewhere around there when i got the money because i was waiting for it when the money came into the check the checking account to be able to pay the house off that morning when it came in i got a call an hour later from my buddy who went into school anesthesia school with me asking me for if i would like to interview for a job about 45 minutes away from my job now i accepted the job um pretty much a week later and i am now home with my family so much more and i didn't really sacrifice my pay at all i actually got a bit of a pay raise wow so without the hours without the other hours wow so like a breakthrough i i actually feel like it was god saying okay you asked for the time of work and now i'm going to close it out with another huge gift wow and so we are extremely grateful to be here today here's the cupcake here's some icing yeah i like it he was faithful for sure amen that's powerful dude and you know the way we know that's god for those of you who don't know anything about god is the timing is wacky there's no other way to explain it coincidence just generally happen in the middle of this then you can blame it on coincidence or something like that if you believed in that kind of stuff but this is like i need some more work okay here's some work yeah and i just finished paying off the house oh here's the same amount of money for less work and coven never did slow us down yeah we picked up more hours during that time so yeah it was a blessing oh you guys that's incredible i mean absolutely incredible people stand on the stage that are all ranges of age but seeing young people without a mortgage payment like you guys like that's insane absolutely insane and and it was it was a short-term sacrifice right like we don't always say to go gazelle in tents through those baby steps but you chose to which is great in that short amount that 18 months which girl three kids i can't even i know i haven't i like the same as you i'm like oh so bathtime's the worst like i know it's so hard yeah but that short-term sacrifice and now the freedom the absolute freedom to even pull back more if you wanted right i mean just nothing it's awesome and in the middle of that somebody was leading financial peace university classes what do you tell them in the class when they ask okay yeah but you make a lot of money what's the secret to getting out of that my dad has always told me you're going to spend as much as you make you're going to spend it in for us our priority was in the house but for a lot of people it's things that they can't even really remember what they spend it on um so it's just being focused you got to determine a plan and i highly encourage bringing your wife on board as well it is a it's a marriage uh you can't do it alone and once she when she committed with the germany bribe once she committed it there was nothing stopping her so when you're going to germany well we were going to go this year but it's going to be 2022 because that's when this lady that we're friends with is going to get married so we're going to be there for her marriage for her wedding awesome now you'll then you'll have a thorough understanding of the german language by the time you get there yeah oh yeah we'll be fluent all right bring the three kiddos in and introduce them their names and ages or what going guys josiah is six mm-hmm and jeremiah's two almost two and we've gotta we gotta tell y'all a little bit about them so uh one day when i was gone josh took the kids and made a paper chain with them each link representing a thousand dollars that we had left on the house and each time we made a payment it wasn't it was a family affair we went through our ritual of making the payment on the computer as a family and cutting off the appropriate amount of chains and um it was a great visual but now that i stand here on the stage i think about how debt has you in chain count it down before we run out of time all right let's hear your death [Applause] [Music] [Applause] well done you guys that's as good as celebrations i've had a long time wow precious amazing amazing amazing well done well played this is the dave ramsey show [Music] [Music] so our scripture of the day ephesians 4 29 let no corrupting talk come out of your mouths but only such as is good for building up as fits the occasion that it may give grace to those who hear amy poehler said limit your always and your nevers [Music] i don't agree with that limit your always and your nevers don't never get too extreme limit the time you say always and the time that you say nevers never unless you're just being a drama queen but i mean there are some things you need to say never how many times have you disagreed with the quotes almost never i never disagree with you i always disagree with quotes because they're like i guess because she's saying because they're extremes yeah that's what she's trying to say but that my point is is that there are principles in your life that you should always stick to and some things you should never do it's fair i don't know i wish i had an argument to play devil's advocate but i genuinely don't i agree with you one of your favorite sports is arguing with me so this is scary the first time i'm worried about you we need to we need to have your temperature checked you're always fun to debate with oh how many people push your buttons i can push her buttons hogan hogan at me argue all the time no on the airlines like us yes we do yes we do he makes fun of me all the time for being bald hurts my feelings okay i'm sensitive that way open phones at triple eight eight two five five two two five don't forget one week from today on tuesday january the 12th we will be doing the reset live stream it is a free live stream with chris hogan rachel cruz craig groeschel and me it is time for you to hit the reset button it is time for you to get the step-by-step money plan to do the small things you need to do for 90 days that are going to show you how to get on track and get moving we're going to lay it all out for you so go to daveramsey.com reset and you can check out the whole thing having to do with ramsey plus and getting a free trial to it and if you want to view the free reset live stream to kickstart your money goals for 2021 text the word reset to 33789 text reset two three three seven eight nine there'll be a hundred to 150 000 folks watching that live stream that night based we've already got 65 000 and we have a week to go and it's free by the way tell people about it tell your friends about it they can start off 2021 with the best minds on the subjects of behavior and money behavior around money all of that amy is with us in flint michigan hi amy how can we help dean hi rachel hey how are you good how are you good how can we help so i had in the spring actually right when coveted hit i had an issue with mold in my house i have since got it fixed insurance covered it and everything but i have been diagnosed with mold toxicity so unfortunately i am working from home and have been since about march um and i got a permanent position at home now um i have now found another mold spot in my house that has to be taken care of so i'm not really sure how to go about it you know my insurance mold coverage is maxed out so do i take out a loan to take care of all the mold because my health comes first i mean i they're talking maybe up to ten thousand dollars worth of damage and i'm just not sure exactly how to go about it because i you know i'm trying to follow your plan i know that you know i don't want to be slave to the lender i don't want to take out another loan but i know that my health comes first so i'm not really sure how to go about it are you single i am what's your household income it's about 36. and you obviously own this home yeah i have two roommates what's the house worth um probably about 130ish to 140. [Music] and what do you owe on it about 110. [Music] so a ten thousand dollar loan when you make thirty six thousand dollars a year is what's known as a lot of money yeah okay well i i don't want to put your health in jeopardy and i don't know enough about you being diagnosed with mold toxicity as far as i understood we all have mold toxicity um so it's new to me that some people haven't some don't i don't know i'm not being smart like i just don't know i know it's not good for anybody uh is my point and so if you've got a special uh level of sensitivity to it which is i suspect what you're saying um then obviously it escalates the situation i've been doing this show 30 years and i've been put personally in a whole bunch of corners where the it looked like the only way i was borrowing money but i a long time ago gave up the idea of borrowing money so i can't recommend you borrow money so i have to recommend something else because i wouldn't do it myself and i especially wouldn't do it if i made thirty six thousand dollars a year and one borrow ten thousand dollars for the second go around the mold on the same stinking house i'd sell this house and move this is going to come up again what are you going to do next time it's ten thousand dollars i mean this house has got a mold problem or for some reason it's got a susceptibility is it a new area of the house amy like why didn't they fix it in the first place yeah yeah this is a whole new area that's what i would say you didn't fix it well the insurance max out but you didn't fix the problem i had mold in my house and now i still have mold in my house so like that's on them they they need to fix it in my opinion yeah but they had they had a certain amount they were the insurance company had a cap your homeowner's mold coverage only went up to a certain amount yeah but that they needed to explain that to her then to say we can only fix x amount it's like they didn't even find the other stuff well she knew she might you knew you maxed out your insurance on the first repair right yeah and i didn't find this new spot until um just last week yeah but and the point is though that it's uh if ten thousand dollars is correct that was a pretty substantial miss rachel's saying by the mold people i mean if there's a 10 000 worth of mold damage and you finished work just a few months ago they missed something right it had to already be there yeah it's this one was kind of hidden in the attic and i don't know if they really did enough checking in the attic before yeah yeah they missed it so um you know i don't know what it means to your health if you can afford to live there for a little while without damaging your health i don't know that i don't know how to explain that i know that dave and sharon ramsey had a lot of different things come up that felt like they were impossible situations and we were put in a corner where we had to make horrible choices but to avoid debt and never going back again we made those choices and now 20 years later we're extremely prosperous because we made those choices well and what it does amy when you kind of make that line in the sand and you just say no matter what we're not borrowing money that forces you to see other options yep and then you get creative and then you say you know what maybe i will just sell the house or maybe i'm going to get out and have the roommates help i mean you start to actually look at different options versus just yielding to debt when you have that stance and so the fact that you're a little bit you're kind of wish you asked you a little bit in your questions and maybe your career maybe you got to work on your career because you don't make any money and you know you got to work on maybe you're going to be working outside the home uh to make more money and um uh that would be okay too uh because you're you know average household income is 59 000 in america and i'm not picking on you i'm not shaming you for what you're making i'm just saying that long term uh five years from now what are you gonna be doing that makes use eighty thousand dollars a year instead of thirty six and you need to be aiming at that and that might be part of the fix for this ten thousand dollar problem it might be the extra job that you take on and you go make ten thousand dollars in a couple of months and uh you work your tail end off over the next three months and you make ten thousand bucks and you pay cash for this fix that's okay with me if you wanna do that uh if you can survive your health for three for those three months i don't i don't know how sensitive this situation is but if it's super sensitive to where you're going to be seriously ill in the next 30 days out of the house then you need to move and you need to put the house up for sale and you need to not try to try to fix a moldy house all the time let's just move on that puts this hour of the dave ramsey showing 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 [Music] [Music] you

Channel: The Ramsey Show - Full Episodes

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

Id: 0ZxYv_XGH1Q

Length: 122min 45sec (7365 seconds)

Published: Tue Jan 05 2021