[Music] brought to you by the every dooll app start budgeting for free [Music] today five from the headquarters of ramsy solutions it's the ramsy show where we help people build wealth do work that they love and create actual amazing relationships thank you for joining us America Rachel Cruz Ramsey personality bestselling author multi times over and lately bestselling author of the new book children's book I'm glad for where I am the second in the series she's my co-host today and my daughter the phone number is 8825 5225 that's 8825 5225 Adriana is in Dallas Texas hi Adriana how are you hi I'm good thank you so much for taking my call sure what's up um so my husband passed away about a year ago and um thank you how were you married um 13 years wow how old was he he was only 41 waa what happened uh was a rare presentation of colon cancer and it from diagnosis to his death it was just under two years so was really fast I'm so sorry thank you um so the biggest issue is that I have life insurance money luckily we had that um and I hired some financial advisers and they're advising that I invest in whole life insurance for the kids M um because there's a high interest introductory interest rate and there may be a um genetic component um the other big thing is that I am intending to take over the mortgage on my house because it's in my parents name and I want to take it over um so they have advised some credit you know to have some credit in order to build my um credit line I'm not working I'm homeschooling and I'm getting Social Security I'm just wondering are those the best routes to take and it's not what what is well you obviously smelled a rat or you wouldn't be asking right yeah and so um are you sure these are financial advisers and not just insurance agents um they have a financial um planning I mean that's what they say they are okay what's the company well they uh they work with I think the company with the whole life is New York I'm sorry it's Eagle strategies now New York but New York Life New York Life yes yeah these are insurance agents they're not financial advisers okay okay cuz the insurance people don't know how to uh do anything but sell insurance and they're not licensed to sell anything but insurance but she said Eagle there was another event yeah but I mean you can't write for a New York Life unless you're a New York Life agent so they're captives so uh it's not an independent so uh uh you know this is just the name of the local New York Life office so no we're we're not doing business with them you need to you need to move you're getting bad advice um and um so uh here's the thing you've been through a terrible thing at a very young age and um and and so uh there's always uh a potential genetic component anytime someone gets cancer that's why when you're doing a uh life insurance of any kind um application they ask about your parents um and if they have died of cancer because they want to see that because there statistical correlations to that at least susceptibility if not DNA issue all and so on right I'm not a medical person but that's what the insur how the insurance World Views it and I do know that okay so um but but that doesn't change what you need to be doing what you need to be doing is taking care of your family what you're doing and building some wealth for your future and the kids Futures and then when they face something if they ever face it they will uh let's say they're 28 and married with two kids by then they should have term life insurance in place um and then if they had some kind of An Occurrence like you guys did uh then they would be ready that way you don't buy whole life life insurance on a child because their parent died of cancer that's asinine okay mathematically okay and it's just the B it's just Insurance AG I mean if you ask a dog if it's hungry it always says yes if you ask an insurance agent if you should buy insurance they always say yes so I mean it's just especially in the whole life world and so no you and and you do need to get the mortgage into your name instead of your parents' names and going to require some other things but we don't need to go get in debt to cause that to happen so here's what we're going to do okay um we don't need anything from you we're not trying to sell you anything uh quite the opposite uh as people of faith our book tells us to take care of widows and orphans and people that take advantage of widows and orphans by the way really get in a bad place you don't want to be there and so we're going to do quite the opposite here uh I'm going to furnish you a ramsy counselor a ram a coach that's been through our training completely free and let them let them coach you through um how to get your investment structured and how to get this mortgage redone and Hands-On rather than trying to give you an insurance agent I mean give you an an answer on the radio and certainly not going to give you an insurance agent so I mean you may need some insurance all insurance agents aren't evil that's not what I'm saying I am saying that if you ask a whole life agent if you should buy whole life 100% of the time they say oh yes it's the answer to everything and uh if you ask me if you should buy whole life 100% of the time I say it's never the answer to anything yeah and in her situation she has the two kids so you you hit on the so well you hit dirty that he's taking advantage of that emotion yes so that on the health side but but the other component of whole life of what people get sold on too is the investment idea right and she was even saying yeah they have high up front interest rate so but for but for her to know that there's other options on how to invest for your that you actually will end up they'll end up with more money a whole lot more than versus even just you put it in a fruit jar you'll end up with more than screwing around with the whole life insurance policy because at least if something happens you've got the money in the jar these people take it all it's it's the wor it it's the payday lender of the middle class that's how bad it sucks mathematically it's absolutely a scummy product and to play on a Widow's emotions about her children might have oh God that's particularly nasty yeah you should be ashamed of yourself but they also are convinced agents are that that it really is the best right I'm like they like well there's only two kinds there's ones that are dumb and are convinced as good a good product cuz that's the only way you could convince yourself is if you can't do math or you're scum right you know you're selling something or you're selling something you know is bad so that's but I think for people listening though that's does it not give you a little bit of a chill to sell a widow her kids stuff based on the death of her their dad I mean does that not just a little bit hello people I mean that's nasty so well and the good thing is is that there's other avenues for both of these from the insurance rout all kinds of avenues totally so a lot of stuff you that's the that's the hopeful side what Happ almost all of it is better than this yeah and what happens you know I could imagine when she's sitting in their office and they're explaining it there's not there's not option A we could do whole life option b you could do term life and this and option C it's all one thing right it's like this is the only option and so just to know that there's hope that there's so many so many things out there for her to do she's going to be okay financially and her kids are going to be are going to be okay trying to give some hope trying to give some hope hang on Christian will pick up honey we'll get you taken care of no cost to you zero this is the Ramsey Show oh [Music] [Applause] [Music] [Music] if you're like most people your home is your most valuable asset and when you want to make improvements it can feel like everything costs too much or takes too 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it we call it the live and give box in the live and give box I'm reaching for it here trying to get my YouTube self together uh The Total Money Makeover book The Baby Steps millionaires book two of my number one best sellers but most importantly you get signed up for Financial Peace University all in one kit and uh boy wouldn't you love to have started out your life with that hello it's pretty cool and if you've got a graduate out there too Ken Coleman's book came out this week called find the work you're wired to do it includes the get clear career assessment in it and so which is really important if you're going to get started you know and so again graduation and wedding season not a bad gift particularly graduates right and um I know you've already got a degree in whatever but yeah I want you to get clear on it and the living give box check all of this at ramsy solutions.com in the store if you want to go straight to the Box just ramsy solutions.com boox for theive and give box Bryce is with us in Louisville Kentucky hey Bryce what's up hey thanks for having me sure how can I help um so I have around 34,000 saved up and um I make about 4,200 uh a month I spend probably 1,500 after bills and food and I was just wondering instead of me putting money into my 401k and uh instead because I just invest in real estate and like put like rental properties up and so I can have a state uh an income at all times Well you don't have the money to buy a rental property I was going to go and take out a uh FHA one yeah which tells me you don't have the money to buy rental property so um we Bryce what we have found is is that the people that avoid debt including rental properties are the ones that Prosper I own a bunch of real estate I love real estate I'd love for you to own some real estate since you want to someday as a part of your life but I want you to pay cash for it do you own the home you're living in um yes okay is it paid off yes good good for you what's it worth um I Got It a praise last year it's probably worth 120,000 it Wasing on so I got it for 30 wow you got a deal good for you well that's cool so I'll tell you what I did and I would recommend you do something similar okay we recommend that if you're out of debt and you have your emergency fund in place then we do baby steps four five and six and baby step four is 15% of your income which is uh you know uh you're you're making like 50 $60,000 a year okay and so we're talking about $7 $8,000 a year is all okay going into your 401K Roth preferably if they have a Roth available and with a match that'd be wonderful and some good mutual funds beyond that I started saving once my house was paid off to buy my first real estate after I had gone broke in real estate by having too much debt so um by the way but yeah so so anyway I I just took an S&P fund and I started chunking money beyond my 15% into that S&P and when it got to be enough in there to pay cash for my first little rental that's what I did you're probably not that far from doing that like what price range would you spend for your first rental Bryce um so I was going to buy uh 10 acre lot for 75,000 and then I can get a used uh trailer that was repossessed for 10,000 they redo it and everything and then it cost me 5,000 get it put in and then I already have someone put in in my septic for 2,000 problem is that won't go up in value only the dirt will not the trailer so I I would not invest in that as a rental uh because I want to invest in in a home uh or a duplex or something that's going to go up in value not go down in value and so um the only time I would look at trailers is if you bought a whole trailer park and they cash flow like a bandit they make so much money uh cash on cash return it's unbelievable but you've got the constant problem of taking them out of service because they deteriorate yeah and you don't no you don't want to take a nice subdivision a good piece of dirt and put a trailer on yeah how old are you Bryce 19 you're 19 yeah you got plenty of time to do got lot of time yeah and I would say to Bryce just to this point it's going to take you and you're you're a smart guy I'm like you're already at 19 you're like thinking of ways how can I wheel and deal and you know make some money which is so great and then this process it's going to take you longer but I think having a goal as you do the math out and say okay what how long will it take me to save up because where you are in Louisville Kentucky I'm like save you know 15,000 and go find a foreclosure at some point this may be years down the road and that be your first like find the deal on the on the sale and just say yeah this is be my first and you just slowly build but the frustrating thing about this process price is is that it's slow but the great thing about it is that it carries so much peace with it it carries so much peace you're not stressed and by the way I've bought over 2,000 pieces of property and Rachel's husband Winston does this for a living now it's what he does he's in the real estate business and um he was trained here with me running my property and so he's doing the we're both doing the exact same things we're telling you to do yep um and we're but we're just decades past you we're you know 20 30 40 years beyond your process but I I remember the first time I finally got $150,000 saved up and oddly enough that's what it was to buy that first property and I had it laying there in that mutual fund and then I looked around and found a bargain and um and there there we go you know and as soon as you get about three of these that you own that are paid for the rents coming off of three paid for properties are pure they're not going to the bank you're not paying payments on them so that pure rent Stacks up fast and you can buy another property ever so often just off of the rents and you get you get a positive snowball and Winston and I what we've done too like there was a condo we got our very first rental was a condo um and and foreclosure nasty thing it was like a one-bedroom one bathroom I mean it was nasty it was really nasty it wasn't much but we fixed it up did it and then eight years later it doubled and so we were like well we could sell that go to you know find another deal somewhere else you can even Step Up in property too as you go through this process you don't want to just hold on that jaie condo we did wow we did that thing was like a family member it had been around a while it was your first one was your first Winston was attached I was not you that was fine I trusted him I was like if that's I did not know the junky condo was gone that's although it wasn't junky anymore it wasn't junk that's how how it started out how it started out but it is fun Bryce and I think that is I think a lot of people are interested in that like this idea that investing sounds sounds boring but it's a tried and true way to build wealth so do it but then the other the other offshoot of investing of in what you're talking about and you're actually going to talk about it at y'all's investing live stream coming up yeah um is real estate and people really are interested and and it is it's a great you love it I mean it's a great it's a great way to kind of diversify even your wealth building when it comes to that I've made a lot more money in real estate than I have in mutual funds and I've also uh but I've also put more money in real estate cuz I'm a real estate person and uh the mutual fund so my personal net worth is probably 80% real estate um you know between mutual funds and real estate anyway not count not count this business that I own and that kind of stuff but yeah it's very interesting so Bryce the the key is it's very difficult at any age but it's really difficult to go slow when you're 19 please listen to the old people go slow the people who go slow in real estate are the ones that are still doing it 20 years later the ones that go fast get burned and they get to start over again which is what I did when I was I started buying real estate when I was 22 and by the time I was 28 I was broke and so um went from nothing to a millionaire to broke between 22 and 28 and so I just don't want that for you I want you to just go slow I I don't want I don't want your face on the front of Fast Company magazine I want your face on the front of slow company magazine so slow real estate slow real estate magazine which you're everybody in America right now let's be honest yeah you're not going to be a tick tock sensation I can promise you and not if you're doing it right this is the Ramsey Show [Music] statistics show that half of Americans don't have enough life insurance or they don't have any at all I don't understand this John why don't people want to take care of their family they think they're going to die or something well I used to be one of those guys I didn't even think about it and one of my buddies said hey the only reason to not have life insurance is if you hate your wife and kids and I immediately went and got term life insurance that's a gut punch and oh you're telling me and for for decades Dave I've sat across people who've lost a spouse they've lost somebody important to them and they don't know what to do next me too I mean you're going to have a crisis here and you know you got two options while you're sitting and talking to a young Widow she's concerned about how she's going to invest all this money properly and not mess this up or she's concerned how she's going to eat tomorrow that's exactly these are the two options and take care of your dadgum family man term life insurance can replace income pay off Debs cover funeral expenses so your family can actually have the opportunity to just be sad yeah to just miss you that's exactly what it's supposed to be it's saying I love you to your family term life insurance Jeff Xander and the team at Xander Insurance makes it easy and affordable I've used them personally for 25 years are the only people I trust go to zander.com or call 800 356 4282 [Music] [Music] [Applause] Rachel Cruz Ramsey personality is my co-host today in the lobby of Ramsey Solutions on the debt free stage Kevin and Katie are with us hey guys how are you hi good how are you good better than we deserve welcome where do you live we're from Keen New Hampshire a little Northwest of keen New Hampshire fun welcome to Nashville how much debt have you paid uh $22,800 um it was 4 years and 2 months four years and 2 months good for you and your range of income during that time we started at about 60,000 and ended up at about 130 wow nice doubled your income in four years yes sir how'd you do that uh I asked my boss to just bury me in work and he obliged yes he did what do you what do you do I'm an independent insurance adjuster oh very good okay so it is you got it you can do that yes yep okay and uh what about you Katie what do you do um I'm stay-at home Mom and homeschool mom love it good for you guys well done all right so this is all that income Chang is all uh all on your boss burying you yeah excellent pretty much good very good very cool what kind of debt did you was this 12 123 uh it was a multitude of just about everything uh student loans two cars credit cards medical bills uh don't think I'm missing anything else yeah about that but just normal you were normal yeah yeah you all been married almost 13 years so N9 years into the marriage give or take eight years into the marriage something happened what happened um well uh first off we just want to thank you and thank God for putting that blessing and that call on your heart to help us and help the millions of people that you've helped so far and will continue to help um and that's really where our journey began is is getting into our Bible and getting back to those biblical principles that are buried in there that we just needed to go find um and you really brought them to light for so many people and including us um but when uh about 4 years ago uh almost 5 years ago we went in to go get uh diapers for our middle child at the time and I went through probably about three or four different cards and I couldn't buy them o and I walked out back to the car and sat down next to Katie and said we can't do this anymore yeah yeah break a break a dad T yep I couldn't buy diapers from my daughter yeah that that'll that'll put an end to it mhm and so you go home and you're like okay we're selling everything yep yep we uh we pulled the old book off the shelf cuz book went through eight different moves with us and never read it nope no which which one Total Money Makeover yeah it was the work book actually a lot we hear this a lot this is a very Total Money Makeover America's coaster on your coffee table yeah exactly oh my gosh so Katie when that moment happens your sitting there in the car are you thinking oh thank god let's do something or were you like wait is it that bad oh gosh like what was your reaction in that moment yeah I mean it was just like a feeling of dread like everything that we've done trying to live normal just didn't work like at all for us it all came crashing down yeah um and then yeah we were pretty much all in we talked to our um our pastor at our church and they were offering FPU oh good went through financial PE yep we got in a class right away yep um we even we had to travel like an hour for it yeah we drove an hour for it uh to conquered New Hampshire wow um and then shortly thereafter the next February of 2020 we let our first class ourselves wow yeah literally a couple months after we got out we decided yeah we're going to lead our own class and then right in the middle was when Co hit yeah January of 2020 y of course oh man what which debt was it for you guys that you were like oh it's gone I'm so glad I'm so glad it's gone credit cards oh for you student loans for me okay okay okay oh yep it was that last one where it was just over the hump especially during when you're right in the middle of it all and the longer the the longer that you're doing it the higher the debt is that you're trying to pay off so that snowball it works but we the mountains to climb yeah yep the back the back of it steep it was 50,000 so it was almost half of our debt was the student loans at the end y y and we we paid that all off in one year we were just that was our last year we were just so you did half of it in three years and the other half in one year yeah we had a baby along the way so that slowed us down and I had a surgery um as well right after I had the baby yeah oh my gosh yeah definitely happen then that math is fair yeah that's good that's good way to go guys you persevered you kept with it you kept with it you kept with it why didn't you quit well you saw one of them coming up on the stage I don't ever want to have that feeling again of not being able to buy diapers yep yep I can't wait to buy somebody a packet diapers that's struggling with their cards at that I see at Target or Walmart or whatever wow I can't wait to go and buy you may buy a whole bunch of in your life before this is over God may just keep putting them in line in front of you yep we'll just Keep On Blessing I love it that's fabulous what do you guys say to families out there cuz I have three little ones too and I just know life is just tiring right you're in a really tiring season and as you're home all day with the kids while he's working extra right so you probably feel like a single mom half the time while he's while he's gone you're exhausted so what do you say to families out there listening and they're like there's this is just not the time this isn't the time to do it we're so tired we're barely getting by like I don't know I don't know what would you say to them um I would just tell them to continue to communicate with each other because that's been the key to this whole thing um don't give up to keep on going no matter how grueling it gets no matter how long the days are no matter how much time that you feel like you don't spend with your kids they're still going to be there they're they're very resilient they're still licking lollipops and laughing along the way um but just to keep on going don't give up yeah yeah it's good it's never too late to start too I mean we were married for years and years and um at one point we had said we're always going to have car payment always he it came out of his mouth and now we're it's not like a statement of principle it's a statement of hopelessness exactly we've been there and you can turn it around you can turn your perspective around so good you guys oh amazing well thanks to your pastor for teaching Financial Peace University at his church and it was there at just the right time go figure knew so great yeah very cool good for you guys I'm so proud of you well done you're Heroes you're Heroes to those little kids you changed their whole family tree so well done y'all well done you're on the opposite of the spectrum from not being able to buy diapers to buying diapers for the rest of your life there you go for other people this time there we go I like it if you live like no one else later you can live and give like no one else that's how that works all right bring the kiddos up what are their names and ages so we've got Isaiah is nine M Mia is five and Levi is three all right and we've got matching dresses with Mom that's pretty cool I like that they've been practicing their debt free scream on the car right here all the way down yep from New Hampshire to Tennessee that's a lot of practice wow lots of Advil for you yes very good guys I'm so proud of y'all Heroes you're amazing you've done something that's absolutely not normal be not conformed to this world but be transformed by the renewing of your mind you're amazing thank you so much thank you well well done all right Kevin and Katie Isa Isaiah Mia and Levi $123,000 paid off in four years and two months making 60 to 130 of buried in my work count it down let's hear a debt free Scream 3 2 1 we're [Applause] de oh oh very good very cool cute kids and I think I think Mia wins the award maybe I she got it down and then went right back to the lollipop right after the stream very well done good stuff you guys very cool so encouraging you can do this at any stage of life with any income with any situation when you decide to change that's when things change no external force is going to do it no matter who's in the White House you still got to fix you this is the ramsy show [Music] [Music] [Music] you know it doesn't take a degree in statistics to realize that this one stinks 93% of undergraduate private student loans are co-signed so when you're delinquent and drowning in private student loan debt mom or dad or Uncle Joe is stuck in that Financial stress along with you but there is a way out why refi why refi offers a custom refinancing option with a fixed rate loan based on your ability to pay and the average interest rate why refi offers is 3.9% which can significantly reduce your monthly payment and decrease inrease your total cost y refi refinances your defaulted private student loans that other places won't touch and I trust them to help you get out of debt so don't be another statistic in the student loan swamp contact y refi at 8442 Ramsey or go to Y rei.com Ramsey that's 844 to Ramsey or the letter Y then r e FY ./ [Music] [Applause] Ramsey Rachel Cruz Ramsey personality is my co-host today Clayton is with us in Charleston South Carolina hi Clayton how are you I'm good how are youall better than we deserve what's up so I got a question for yall uh my wife and I just bought our first house um and I'm currently a UPS driver I make $30.7 an hour and my wife is a doctor's assistant she makes about 23 an hour so overall we make a little over $100,000 year uh which is great but uh I just got recently a job offer it is a pay cut but it is a better quality of life um we have no debt other than our house we owe $244,000 left on our house we put uh about $70,000 down on the house um and I just want to know what do you think I should do should I stay where I'm currently at and work to pay this this house off or should I take this job and get a better quality of life when able to be around with my family and you know give me the to start having kid everything so we don't have any kids right now your family's your wife yes okay all right and I'm confused how many hours a week are you working as a UPS driver anywhere between 55 to 60 hours a week mhm are you able to cut back on just your hours there if you wanted to unfortunately no uh the way it works is whenever you start is the start time that they give us and then whenever you're you're finished delivering is when you're finished okay so when unfortunately there's nothing elce okay what's the um what's the price like the what are you goingon to be making the difference in income So currently I'm 3075 and then the new job will be 2538 an hour and have you run about A5 jump okay yeah and have you guys run the math it's not a $5 jump because you're going to be doing 40 hours instead of 55 correct so it's a it's a it's a 50% pay cut yeah because you're not going to be working as many hours and you're going to be making less per hour cor right have you guys run a budget to see like to just to see hey if I took this new job and with the pay cut in the hours I'm going to be working here's what we have left and like this is this will be our life financially have you guys run those numbers we have but I just feel like we're missing something and yeah you're running it at 55 you're running it by the hour that's what you're missing right you need to run the actual totals and then and then you're going to realize that you're taking $35,000 year pay cut no you don't need to take this job that's bull crap you weren't looking for a job this thing popped up and it's not the answer to your problem okay well I was looking for a job okay we see happened that c is what you want you want a job that pays what UPS is paying without working 55 hours not by not by the hour by the total so I want you to find a career you're making about $70,000 a year right yes sir okay and I also get a pay jump this year too good I want you to find a career that pays 70 to $80,000 a year and start working your way towards that career working 40 hours or so um now I i' I've done work for UPS speaking to your your guys's Executives and I know a bunch of UPS drivers and retired UPS people and the the stock plan is incredible uh I mean and I I don't know exactly how where you are what you're doing works but my feeling would be Clayton that you could probably pick another route over time that got your hours down yeah I was going to say as you move up in seniority right yeah yeah is that not how it works let me uh yeah as you move up in seniority you can get a better route and stuff but there's at my Center there's over a hundred drivers and I'm currently night like number 70 so that's going to be like 10 15 years from it's not no it's not they don't stay you got turnover in there they don't all have to die off yeah and so um I I think you need to talk to some guys around there and find out how long it's going to take you to get into a more reasonable route situation uh where you can control the thing cuz you're a low man on the totem pole right now so you're getting crappy runs that have long hours uh of course holidays you've got crappy runs that have long hours it just goes with your territory but UPS is uh a company that work hard and pays well that's the company right they have a real work ethic culture um it's one of the reasons that they were attracted to me uh and vice versa so uh it's been many years ago that I did that but just the same I came away from my time working with their executive teams and stuff uh with a respect for y all's culture um and so but no I I think if you want to work less hours you need to figure out how long it's going to take you to get there at UPS as a possibility also say okay what career field can I start moving towards and if it takes me a little while to get towards that career with some of the steps that king Coleman outlines I would do that but this presupposing that I'm going to cut my pay in half so I can work 40 hours and so I can be home with the dog um nah right nah Clayton how old are you ask can I ask you that how old are you yeah I'm I'm 26 and my wife is 27 I actually wanted to say something else real quick too with this new job my hours will be 40 a week but I go in at 6 and I clock out at 2 so it gives me the opportunity to pick up a second job uh so where's the quality of life increase dude well now you're back to 55 hours a week and you're just making less I guess yeah yeah now you picked up a a side hustle so you're you know unless that side hustle is taking you into something where you want to be when you're 36 no no I wouldn't do that um I'm not saying UPS is the end all to be all I'm not if you if you want out of there I'll help you get out of there hang on I'm going to send you a copy of Ken Coleman's book uh this new one find the work you're wired to do to get clear assessment and I want you to take that assessment I want you to start thinking about what you really want to be not just what you make what is it you want to do with your life and I will tell you folks out there aside from this um I'm not about workaholism I'm not about you abandoning your family in the name of work and never knowing your children's names or anything like that I didn't do that when our kids were growing up I went through a season where I worked my tail off 16-hour days but it was a season it was not a life style and uh the children were a little bitty and um you know their mother would tell you that she was a single mom during that time but it she and I talked it through it's what we were doing to start this place that I operate today it was the foundation of this place in the '90s I was doing that and so it was a period of time I meet almost no one who has a high quality life that has left their mark on their family and on this Earth that does it on 40 hours just I'm going to work 40 hours of my whole life you're just you know yeah for a period of time if you're training for a marathon you have to sweat now do you have to do that every single day no when you finish you know when you hit the next time you take a little time down okay but you work like no one else so that later you can work like no one else and you know you're just now getting involved and I don't know I guess all your friends are out partying while you're working because you're 24 um and you know that's going to show are you 26 they going to show up in their Liv there's season there's seasons of sacrifice and and and for Clayton and I don't know I'm just making this up but I'm like yeah there could be a season you're an entry level guy you got the crappy route and you do that for two years and then you get a better rout better pay and you know what I mean but like there's you don't get to start off and not that he's saying this but you don't get to start off you know at the top necessarily and so um it was funny I was doing career day at my third graders little class and they said where did you start off I was like I started off going to assemblies and high schools all across America and I did that for like you know three years Z who knows I didn't get paid yeah I mean who knows where in these yeah these small towns and all of it but you know again there's just there is that level of sacrifice but then there's a clip going around on you on on on on on the socials and you're like work 80 hours a week so everyone does think that you're just like a workolic well I know everybody that wants to and moan some of that just but yeah if you want something to whine about you can find a clip of me to whine about that's not hard I've done 50,000 hours of radio there's plenty of me saying something out of context that'll get you where you want to go for your little Tick Tock clickthrough this is the Ramsey Show [Music] [Music] brought to you by the every dooll app start budgeting for free today live from the headquarters of ramsy solutions it's the Ramsey show where we help people build wealth do work that they love and create actual amazing relationships Rachel Cruz number one bestselling author including her two book series so far on children's books I'm glad for where I am just a recent bestseller for your kiddos it's the second one in that Series be sure and check it out she's my co-host today and my daughter open phones at8 825-5222 calling because I have a daughter uh who's going to be graduating college this month um she's going to have about $80,000 in student loan debt good Lord um I know so here's the thing my husband and I knew inheritance money would be coming our way so we didn't push back on her going um out of state where there's higher tuition and we didn't really tell her we would pay for her college but we told her we'd figure it out because we thought we might be able to do that and um that would be money coming from his side and my side so my husband and I divorced when she was a sophomore in college and then after the divorce I did get my inheritance money and so I have enough to pay it in full and I want to do that very much I want to help my daughter um the only thing I'm just wondering is should I pay it in full or have him ask and he would be willing if he had the money he's just kind of I don't know he has it right now to take on half of that burden of helping her does he have the 40,000 not right now he does not okay all right um does the divorce decree demand that you two pay this or is this just something you all sort of kind of had a discussion about once way back there and never talked about it again uh correct there's nothing in the divorce Dee on this yeah your ex-husband's not going to give her any money well yeah I I think he wants to and he would if he could um so that's where I'm thinking what I could do is just pay it in full and then ask him to pay me later but I don't think I will ever yeah that yeah um I mean if you're if you're on speaking terms with him and you want to pay it in full say I just paid it off one time we talked about it and you said you'd pay half if you can ever give her the other 40 maybe she could use that towards a house or something okay yeah cuz it it was a quite oh go ahead yeah it's okay so if mean if you can have that conversation that would be fine but then but then forget it it's over you know you don't get to go back later and go where's that money right right you just you just drop it you made a decision and you made a comment and you moved on that's what I would do because otherwise this is going to ride around rentree in your head yeah and and we we're we're quite we're friendly it's quite amicable um situation not relative if he doesn't ever give her money yeah and it bothers you and you lay awake and he doesn't think about it again you'll be the only one thinking about this on the planet how much did you get from The Inheritance Katie um well quite a bit I was able to uh buy my own home after the divorce with it what's quite a bit how much did you get do you feel comfortable saying it or no sorry just under a million okay yeah so you have a paid off house how are you doing financially because that's almost what I'm want to make sure that you know this money's being I mean it's 80 grand so I'm like I want to make sure Katie you're you're set up well um for your future retirement I mean like looking like we talk about doing that laying that foundation for the parent first before the kids and so yeah making sure that yeah where you are financially is in a good spot so you bought your house outright so you have no mortgage correct and how are you doing with retirement Investments and everything um I am I think I'm okay I have 700,000 um in an IRA well in an IRA 85 in a 401k the house is worth what 500,000 and you're how old 55 cool so you're a 55y old married I mean divorced millionaire cool that's neat oh thanks to my mom I know and so we want to honor that memory by being wise if I'm in your shoes yes I would write a check based on what you have told me and pay off your daughter's student loans and yes I would make a phone call to the ex and say hey remember when we said that I just paid the whole thing when you get ready to pay her your half like you promised someday she can Ed that for her first house or something else and um I'm not letting you off the hook I wanted you to know I had done it though and drop it after that forget it ever happened just walk away and never think a thing about it again can you do that I can do that okay because I don't want this becoming this constant thing like when's he going to do his part you know and all that because you're doing your the only person you can control is you and you can't control him and you know you're you're saying it's amicable and he intends to and you have faith in him um you know I've just been doing this 35 years my faith in the ex following through on a promise is fairly low you know it's just fairly low I just see you know I guess nobody calls this show and says oh my ex followed through that doesn't happen we get only the other ones yeah but but yeah I just wanted to let you know Dave no I mean because I guess some of them do but I mean we just don't run into it and thank God for you know that she I hate to say that cuz it it was her mom's passing so I I didn't mean that but just that she's in the situation she's in because that's another reason why we say don't take on debt because life happens and they had this plan yeah and then ends up getting divorced in the middle of school and if this inheritance hadn't come this daughter you know if it's a Parent PLUS Loan I'm like yeah both could be on the hook but also I don't know what the daughter signed I don't know how they did the the student loan agreement but this daughter signed up for she's got she could have been 80 I mean would have been 80 Grands thinking like we'll we'll take care of it too so that's the aster too of the story is that you're taking on risk always always always always when you take on this de and life rarely plays out exactly how we have it planned out like never yeah so it's it's just that that word of caution but um Katie I'm so sorry that's a hard season Katie you know losing you know your mom the divorce in the middle of of it and it's just that's hard that's really hard but this is a redeeming beautiful thing that you'll be able to do from a financial aspect um to be wise with so I'm glad you called in very good very cool good stuff so yeah the the cool thing about student loans is is they shouldn't be there at all almost all of student loan debt is based on someone choosing to go to a school that they could have gone to a cheaper school and paid cash almost every time you're choosing a school you can't afford just like choosing a car you can't afford and so I I can buy a car to drive around for $5,000 I have $5,000 or I can buy a $50,000 car because it's a nicer car and go $445,000 in debt that's a choice it wasn't a requirement to have transportation it was you chose poorly and you choose to go to school you freaking can't afford moms and dads you need to teach you need to learn a new word no it's a new word try it no everybody practice with me no this is the ramsy show [Music] hey guys it's Rachel Cruz here to tell you about a faith-based alternative to health insurance that can make health care more affordable Christian Healthcare Ministries chm allows members to share each other's healthcare costs and it's as easy as 1 two three step one choose the healthcare provider you want step two submit your eligible bills and step three get reimbursed chm members take care of your eligible medical bills with no networks and the freedom to choose your healthcare provider chm is the best option for Christians who want to take care of their families and help other believers find out more at chministries.org budget [Music] Rachel Cruz Ramsey personality is my co-host I was going over my notes this morning to get ready to speak this weekend at The Total Money Makeover weekend I am so excited excited to get to do this I haven't done the classic Total Money Makeover material in a while and I'm getting to do some stuff I haven't done yeah before this Total Money Makeover weekend um I I'll be speaking of course Rachel Jade George camel Ken Coleman on how to get your income up John deloney on how to bring more peace to your life overall getting out of debt creating a budget communicating better with your spouse easing anxiety investing in building for retirement and it's a whole thing we start on Friday night this coming weekend and go all through Saturday and uh live taping of the hit podcast smart money happy hour with Rachel and George we've got live Q&A all through the thing it is going to be an absolute blast and there's still some tickets left sadly I thought it would be sold out by now but I was wrong so we'd love to have you guys it's right here on the Ramsey campus this coming Friday May 10th and 11th you could come a little early and watch the show be done we do the show every day from 1 to four Central Time on the glass following that grab a bite te somewhere and then come on up up on top of the hill to the Ramsey Event Center and we'll be doing the event so you can get your tickets at Ramsey solutions.com events and uh handful handful of tickets left you can still get in and um we're we're excited about doing this yeah it's going to be a fun weekend it's always fun our events are always enjoyable and we'll all be there and I like that it's so money focused the whole weekend which will be great yeah you'll laugh you'll cry you can uh bring that spouse there that needs to be converted or that friend that thinks you're crazy and they will leave being as crazy as you yeah that can happen Daniel's with us in Tallahassee hi Daniel welcome to the ramsy show hey Dave Rachel how are you guys doing better than we deserve sir what's up all right just a quick question so basically um after some few time uh after some convincing I did get my wife on board we are both on board when it comes to uh attacking our debt um I want because out intense and if I can borrow the language you guys use she wants to be more on the intentional side while still taking care of things uh that she thinks are still important so I'm the grumpy guy who says I don't want to do nothing um no more Christmas no more gifts no more no more nothingless just did you say no more Christmas well no more yeah I want yes I well no wonder you're unpopular Grinch yeah I am the Grinch I'm not a big on only because I'm how can we strip down to the bare minimum I'll go with that but I mean you start with Christmas I'm I mean I'm cutting some of your stuff before we're getting to Christmas buddy oh my gosh no wonder she's not enthused about you so my question well I guess I I introduced her to we both uh I introduced her to thinking funds and now we it seems like we're starting to have a growing amount of sying funds so we can stop dealing with things as they come up and it's helped we have the money when we need it but I feel like the sinking funds are taking a little too much of the margin and I would like to attack the debt at a more aggressive speed so I don't know how to compromise with her and we're running at different Paces here it seems like what are the sinking funds for um let me pull up every dollar just to give a few examples here but um so every board she's every dollar okay keep going sorry go ahead um home for instance the home school program every year comes around around August September we pay for that um we used to go into debt for that but we stopped doing that since we stopped this whole how is that a waste it's not a way that's no some of these are not a way that's not a we need a for instance that's one of these things that's bothering you give us a waste that one's not bothering you if it is you got an issue no my girl's my daughter's birthday um it's coming up this is so bad um now that I realiz okay but she wants we're saving up some of that because um how much are we planning to spend on the daughter's birthday um I have twin girls so it's set we're setting aside 100 a month um you're spend $1,200 on a birthday party no it's coming no no no it's about 500 it's coming in up it's coming in um August so it's so 250 a kid right okay so your argument is that that might be too much no I feel like they starting to all add up um well they're adding up because they're real I mean that food thing it adds up yeah because I think Daniel there could be an instance of like oh my gosh life is expensive where you all just been charging everything you said The Homeschool stuff we just go into debt for it you almost just delayed everything and now when you're paying for stuff so up front it is going to feel like yeah that there that there is more yeah you're actually admitting what's going on now by doing a budget with sinking funds and you weren't before so I I um unless it's a vacation right gazelle and tense I would say we don't do vacations let's let's pause 12 months on the vacation eating out eating out we're going to pause like a couple of things to do but um but the reality of life and what life costs may be the thing that's like oh crap this is this is a lot and when we're cash flowing everything like what we teach you really face oh my gosh our life is eating up so much of our money because life is expensive so there could be stuff that you guys tweak here or there um but yeah uh so Daniel it it sounds like that um you're I don't think you're on as different a page as you think you are I think your argument's not with her it's with reality you're struggling and so um let's give it a month or two and just kind of see if this see if the emotions of this iron out okay I appreciate and embrace your enthusiasm I appreciate and embrace your passion to get this done those are keys to getting it done and so you keep that part going yeah but just don't blame I don't think she's to blame nothing you gave me here was like that she's acting like she's not intense I mean we're going to buy clothes and we're going to buy food and we're going to pay for the homeschool materials and you know um we're going to have a birthday party might be a little high but it's not it's not you know it's not throwing you off by two years thousands yeah right you didn't tell me you spend 12,000 or if you just said 12200 I'd probably say that's a bit much but yeah but the uh um and it depends on the age of the kid and all that kind of stuff too I mean if you got twin one-year-olds they don't even know you're doing this so you're doing it for you so then then that's a different thing so uh you know but it I but if they're twin 10 year olds they definitely know they know everything about what's happening there m and I guess a um a a visit to the Magic Mouse Mr cheesy what's his name Chucky cheesy Chucky cheesy yeah the Magic Mouse I guess that's probably a couple hundred I was like Mickey Mouse I guess no I think I'm thinking Chucky's probably a couple of hundred bucks to go CH I mean per kid yeah I mean those birthday parties at those places you're paying per kid and yeah so I mean the packages it can be you down there I don't know what they cost but I've been down there when it happened 20 bucks a kid 30 bucks a kid for the unlimited stuff me and the mouse are in there no we've drugged day chuckecheese indoor trampoline parks there's been a lot of great birthday parties a lot of great birthday parties there's not enough there's not enough disinfectant in the world there are some there are some gr it's full of kids it's full of kids little sweaty kids all full kids all over all the yeah it's just nasty but yeah I'm guessing that I mean I've been to those with the grandkids and I'm guessing you guys are shelling out yeah a couple hundred bucks so yeah I would I would say if you're getting out of debt the birthday party is probably at home you're ordering some pizza having some friends over and calling it a day I mean like you know what I mean if you're going to go just like yeah the simple routes yeah and it can be done like it's that's that's but but the thing here Daniel I think is what as we talked through this with you everything you brought to us were things that were not out of bounds and so it didn't sound like your wife with the sinking funds is like destroying your little plan it's more like reality is destroying your little plan and dampering your enthusiasm it's actually a really great point I hadn't thought about that but for a lot of people that are starting this process when you say no debt yeah so that we can pay off debt then those expenses are real it's not this like oh we can just worry about that later Kick the Can down the yeah down down the road but then that's the power too though to his point is that's when you can cut some of those things you're like oh my gosh what were we paying for that maybe there's a cheaper homeschool program or whatever right like that's when you actually start caring about the expenses cuz you're you're seeing it in real time and in real life [Applause] [Music] [Music] [Applause] [Music] [Applause] your home is probably the biggest purchase you'll ever make and with a real estate market like it is now you'll need a mortgage company you can trust that's Churchill Mortgage you guys buying a home is not a button push it's a process it takes building a relationship with an expert who will dig into the details and give you peace of mind without busting your budget Churchill is one of the highest rated lenders in the country and they're ramsy trusted because they do what's right for you go to Churchill mortgage.com to get started [Music] Rachel Cruz Ramsey personality is my co-host today in the lobby of Ramsey Solutions is the debt free stage on the debt free stage is Ruben and Kirsten hi guys how are you we're awesome hey Dave welcome good to have you good to have you so where do you guys live Colorado Springs Colorado Colorado all right well welcome to Nashville good to have you and how much debt have you two paid off we paid off 270,000 and 5 years wow good for you and your range of income during that time we started at 72,000 and then went up to2 very good very good what do you do for a living um we both work in the finance department of a software Supply Chain management company okay aome same place same company that's fun did you guys meet there um we actually met at a different location and we worked together the entire time known each other just different places that's awesome so great so how long have you been married married um it'll be six years next month so right after marriage boom boom we're getting out of debt yep 5 years game on what kind of debt was the 270 this was our house you paid off your house looking at a couple of weirdos I love it you're so weird what's this house worth I'm probably about 425 I love it and how old are you two weirdos 30 30 years old I'm 31 he's 35 okay close enough close enough trying to get some youth good good move Ruben well played yeah I like it hey very good guys early 30s that's amazing so you get married and is this the was the only debt you've been working on or did you pay off others before that um so it started about eight years ago but we cash flowed my bachelor's degree um our wedding our honeymoon to Alaska um just saved like crazy and then during the payoff we financed or not financed sorry we paid off about 50,000 um in home renovations yeah w and paid 270 yes yeah where' to go guys what in the world happened to y'all that made you so weird this is wonderful like a year after marriage it's game on on the house yeah basically started for me about eight years ago uh driving home from from work in a in a job that I hated and just really wasn't happy about who I was and where I was at in life um turned you on you just happen to be actually turn on the radio you just happen to be on the radio and uh never listened to the radio back then and heard your voice heard your name before but had never truly listened to you um and some context my grandparents my dad there been huge influences on my life they basically practice your principles um from day one you know pay cash for things live unless you may God's and Grandma's ways of handling money and when I heard you like that instantly clicked for me um so I was super dis intrigued at that moment but I also just loved how raw you were with with the cerss you know uh I don't want to see you in a restaurant without you know unless you're working there uh you need sell your truck you know so like I was pumped up just listening to you and uh you know you really started talking about changing your family treat and talking about things that that really hit me hard um changing about who changing who you are changing um uh you know really just owning up to yourself and taking control of your life and that hit me hard cuz uh yeah just when I heard that I looked at myself in the mirror and I was like if I'm ever going to have the things that I love and really want in my life then I need to I need to to do something about it I didn't have a money problem I just had I had a me problem so thank you that's amazing and that's it I'm like that's that's the key for so many people it's that Awakening of like oh my gosh I can do this like I can wake up tomorrow and make different decisions it's so empowering so you guys had babies during this time how old are the kids um Isaac is two and Ruby is seven months okay okay so y all have little ones little ones so what was the hardest part of this I mean this is a lot of money you guys that you paid off a lot of I'm sure extra work and everything but yeah what was what was difficult I think just staying the track you know it could have been really easy to to divert the plan or uh you know just make other decisions we've had hail damaged cars are pretty much whole lives you know we just don't care but uh it could have been really easy to to move to divert but we we had a better purpose and we knew we were bringing kids into the world at some point was it worth it oh was so worth absolutely who made fun of you um we got called crazy a lot um but nothing like down P putting that was just more poking fun and and um just it encouraged us just in a different way yeah did you have some cheerleaders people that were supporting yeah definitely yeah good good and another thing that was kind of hard for us I guess is I had had a town home uh like 2015 and it was super cheap and it it's not in the best part of the springs and uh there was a lot of crime activity driveby was across the street you know somebody had gotten killed shot and killed so people were like you need to get out of there we're like no you know we got to we got this you know we're doing this for a reason you know this is for a purpose uh so that was yeah yeah the location and then you got the house though so you moved out of that house we just we wanted to wait until after we were married and um do things in the right way and yeah we stayed there longer than we should have but we do we're still here we weren't shot so so there we go oh you guys that's incredible I don't know if I've ever heard anybody say that so pleasantly we're still here and we didn't get shot way to go Kirsten I love good for you guys way to go you guys I'm so proud of you I would imagine your mom and dad are jumping up and down proud aren't they Ruben oh man well my mom passed away in 2008 so you know part of that was she did have a 30,000 in life insurance that we I was a we were able to put down on the house that we're in now so to honor that or honor her that way has been awesome and you know yeah it's incredible so great you guys so great so what would you say to people the key of getting out of debt is um for us we put when we initially got the mortgage we put the extra P principal when we did the paperwork so there was that gap for us like the extra payment was automatically coming out so we just got used to that being our mortgage payment even though it was more than double and it put that Gap so you couldn't make any real impulse decisions and that would take you off of your goal yeah yeah that's great that's a smart way of doing it for sure automate your discipline y I like that just keep it going that's a good plan I used to do that to myself all the time until I had natural discipline I put stuff on auto everything so it just automatically happened and I went oh now I have to live on what's left cuz I put all that money in a mutual fund you know it's like wow that's very cool good for y'all well done very well done congratulations all right it's uh you want to bring Isaac and Ruby up for the debt free scream Isaac Isaac come on so sweet oh my gosh she's so cute seven months seven months we're going to SC she's going to get scared to death when her mom and dad yeah I know the babies yeah they always get a little frightened with the screams so great I love it all right Ruben and Kirsten Isaac and Ruby's uh Heroes they've changed their family tree early 30s with a paid for House in Colorado Springs meanwhile America sits around in some places whining that it can't be done these two proved that it is done every day this is what you call Millennials this is what you call Millennials that win and we see them all the time or gen Z Reuben and Kirsten paid for house Colorado Springs 270 paid off in 5 years making 72 to 172 count it down let's hear a debt-free Scream 3 2 1 de [Applause] y as predicted scared poor Ruby to death I think Isaac got a little got a little scared too jumped there's a lot going on there that's so great amazing oh amazing yeah so for every time I hear that you and I on the Ramsey Show and Jade and George and we're out of touch and we don't know what the real world is today and you're speaking Boomer language and all that kind of stuff all these negative things that are out there then we meet people like them yep kirson and Reuben and they do not just purchased a home but they paid it off in five years in their 31 years and I think it was making 112 not 172 72 to 112 oh I wrote that down it looked like a seven no no but I'm saying you know it's so it's it's not like they're making 300K right right exactly I mean it's it's amazing and it is it's the discipline and it's choosing and now it's the the whole idea that now oh my gosh there's no payments there's no payments but they did it well Ruben said y'all could Replay that monologue for over and over on Loop because it's true I'm like you take respons yeah you take responsibility and it's amazing yeah he said the guy in my mirror had to change and he did I'm so proud of him what a hero M and he's got he changed his kid's lives yes Cen just killing it I'm amazing well done well done this is the ramsy show [Music] hey guys ramsy solution started small and grew fast because of that rapid growth there were times when our systems slowed us down that's why we switch to net Suite it works for us and it'll help your business too whether you're starting on a card table like I did or you're well on your way to becoming a multi-million doll Company netw Suite can scale with you and help you communicate and plan better because you know your day-to-day up and down and sideways but accounting analytics and supply chain are on another level so maybe you're just not techsavvy that can be okay next week will help at your speed and whatever your situation more than 37,000 companies use netsuite to know their numbers and their business better so check out netw Suite today and find out how they can help you become the business you want to be 5 or 30 years from now and right now you can download Net's free kpi checklist designed to give you consistently excellent performance at netsuite.com Ramsey that's netsuite.com [Music] Rachel Cruz Ramsey personality is my co-host Steph is with us in Chattanooga hi Stephen welcome to the Ramsey Show hello hi here we go so I'm about to be divorced uh the income disparity between my wife and I is pretty great so I have um a large amount coming my way in a Quadro and alony coming my way three years of bonus money of her coming my way we're going to be selling a home here soon and I'll get about 100K out of that I want to get myself into a house and have it paid for in the next few years I don't have any um retirement or anything set up yet I'm 46 my income is growing rapidly I'm a brand new Barber I'll be a make about 30,000 this year but I believe every year probably go up about 10K okay where am I where am I going with this what do I do with this Quadra I'm going to have Quadra quadra's got to be put into an IRA you've got to leave it alone if you cash that out you're going to get penalized in tax you got to leave it alone yeah so just pretend it doesn't exist exactly need to get with a smartvestor pro at Ramsey solutions.com and find somebody to sit down with and they can help you do the rollover and you can move that into your own personal IRA and some mutual funds and have no taxes on it but if you pull it out and screw with it you're going to have taxes on it so leave it alone because it's in her you're take all it is is a section of her 401K being sliced off for you yeah that's all it is I had thought about using that for a down payment home no no you're getting a hundred out of the home and you're getting what other money you said you're getting a couple of bonuses and other stuff how much money total yes not count not counting the qu uh four years of alony 875 a month and three years 25% of her bonus it'll be about 8 to 10 grand each year oh it's not all in a lump sum no the only lump Su the only lump sum that we can touch then is 8,000 you're GNA get 8,700 a month is that what you said I'll be getting I'll be getting about 6 00 a month in aliman child support oh okay okay okay I gotta okay yeah yeah okay so it's broken up over four years and my income will be increasing over that time as well yeah so I I'm going to be looking at putting a 100,000 down on a house that's what you've got yeah and just ignore that Quadro yeah you you've got to um because it be it' be like taking the money out at 30% interest yeah because all just gets taxed you're going to get taxed and a 10% % penalty you're going to get hammered so you leave that puppy alone and just go do you a house of some kind with 100 Down based on the current income that you've got and you can count um uh palamon you can count sh I mean you can count all of that in terms of as long as it's going to continue and and that'll offset the fact that your income hasn't gone up or you can wait a year and let your income come up um and then you've got a story to tell to a mortgage company showing tax returns as a new Barber that made this and then I made this and then I made this and here's a trend line and so it's reasonable to qualify you based on those things you got to have two years tax returns uh as a new self-employed person uh and then you'll be able to move forward on that but yeah just just take your time there's no reason um you you know you are uh getting some money out of the divorce but it is you it's not exactly like you hit the lotto I mean it's it's a it's a nice amount of money but it's not it's going to not going to put you on Easy Street you're still going to be doing a bunch of careful things there today's question of the day comes from Taylor in Mississippi Taylor says I'm currently 12 weeks pregnant with a baby girl from my boyfriend I recently lost a loved one who left me a large inheritance I have $40,000 of debt and my boyfriend is debt free do I take this inheritance and put towards my debt and then take what's left and put down 20% on a house my boyfriend and I plan on getting married but for some reason he's really against getting married before I have the baby that's weird okay well I don't know why that would be the case but um yeah that mean that's what I would do yeah I would take the inheritance I'd pay off your debt Taylor I would keep everything so separate if you bought a house I would buy it on what you make your income your life I mean I I would be very very uh hesitant to put him on anything I wouldn't put him on anything not hant don't just don't do it and I probably wouldn't do anything until baby comes I mean honestly I don't think I would make a big decision like well pay off your pay off your debt pay off your debt but I wouldn't buy a house pregnant I would continue to rent uh maybe rent for the next year or two then then hopefully you guys get married then after you have the baby and then you guys together after you're married look and see okay let's let's purchase a house but while you're pregnant I probably I wouldn't take some of this inheritance and put it down payment I would just I would rent be where you are for you know 1 to two years and then from there see what happens relationally if that changes um and then even just financially at that point yeah I'm old why is he there's a term from my generation okay careful called shotgun wedding oh yeah which um you got a baby on the way buddy you show up or Daddy's going to bring a shotgun and help you show up oh my gosh that that's what that means that's where that comes from that's where that comes from I'm going to bring my shotgun and by God you're going to marry I just thought you me a fast okay no that's that this is like disturbing but I agree well I agree that it's weird that he's like really really against getting married fast backwards I it's it's just it's not weird it's just wrong and and it just my warning bells are going off like crazy mine is too but I don't want to force her into a marriage with with a terrible guy so I'm like right no I wouldn't no I would not say just go get married right now he's not a great guy reason for some reason he doesn't yeah I'm okay so yeah don't put this guy's name on anything until he is a husband and uh period yeah under any circumstances and don't put anybody you're not married to period no matter how sweet and wonderful they are their name on your freaking house you get yourself in a disaster this just H all right John's in Colorado Springs hey John how are you how are you good how are you thank you for taking my call sure so I've got a bet with my wife on what we should do with our side hustle money so we owe 102,000 left on our house we have no other debt we have our rainy day fund our money and savings we give 15% to our 401K in our pension um we are interest rate on our house is 2.2% I make between 30 and 60,000 on our side hustle so I say that we take the 30 to 60 every year and put it in mutual funds because the rate of return is greater than the 2.2% on the house my wife your wife has been listening to the show and she set you up yeah she said that we need to just pay off the house she set you up yeah I hope you didn't bet much no John what we teach and have the entire time we've been on the air for 30 years is that you pay off your house as fast as possible regardless of the interest rate beyond the 15% because in studying the doing the largest study of millionaires ever done in North America we talked to 10,167 of them let me tell you how many of those 10,000 said we became a millionaire because we didn't pay off our house house and instead made more money by investing the money in mutual funds out of 10,167 what number said we are going to go with John's plan zero zero not one we've never met a millionaire who really did this we've met a lot of people who have a theory and discuss it the way you're discussing it because you're a math guy like me and I I immediately go to where you're going to um because that's how I my math brain works you're looking at the but what your spread doesn't take into consideration is risk and the two elements of a paid for the two elements of someone getting a fir their first one to five million is typically their 401K being well funded which is 15% of your income going in you're doing that and a paid for house and so you're on track if you follow her plan to be a millionaire faster than if we follow your plan based on the data that we've studied of actual millionaires not with mathematical Theory um because the math theory of what you're bringing up is reasonable but uh the actual facts are when you pay off your house other stuff changes in your life and you tend to excel in your career and do other things you can invest the mortgage payment yeah ex you don't have one yeah you can invest the mortgage payment like crazy and you go into overdrive this is the Ramsey Show [Music] [Applause] [Music] brought to you by the every doll app start budgeting for free today live from the headquarters of ramsy solutions it's the ramsy show where we help people build wealth do work that they love and create actual amazing relationships Cruz ramsy personality number one bestselling author my daughter is my co-host today thanks for hanging out with us open phones at 8825 5225 Claire is with us in South Bend Indiana hi Claire how are you hi Dave I'm doing great how about yourself better than I deserve what's up well first I just want to tell you really quick I met my husband one of the first dates we had he told me that his dad raised him with the Bible in one hand Dave Ramy booken the other that's how I kind of was introduced to you so I thought that'd be funny to kind of share that's that's a little scary actually well it's let us on some good paths here so good how can we help today I'm calling I wanted to ask you um as you both know daycare costs are really high um we are expecting our second child in August which we really excited about um we both work my husband and I fulltime and so daycare is our is our option in life right now um when it comes to trying to figure out in our budget we're on baby step 456 um kind of like how to best budget for the upcoming expensive daycare um we are kind of at a loss with we can't afford it and that's that's not an issue but it's where does it come out of you know we're trying to figure out with our budget does it maybe impact us putting right now we're putting 15% each into re retirement for a season until my older son can go to a less expensive daycare do we put maybe 10% into retirement each so we have a little bit more room to give to the daycare for our second child when he goes to daycare or you know kind of trying to figure that out um what's your household income we currently make 121 a year okay so 15% is 20,000 bucks okay yeah and uh daycare is how much um right now we pay $311 a week for our son so that's roughly depending on you know the month it could be between one5 and one two um 1,200 1,500 um but with the second child we get a small 10% discount and it could be anywhere between 2,100 a month to 2,700 month of the daycare we're currently at yeah so it'll be three grand a month is what you guys will be paying yep in daycare and how much do you make a year so I currently make 55 a year okay and my husband makes um I think when I broke it down it's 60 oh that's right you said 121 household yep sorry I had that number okay that's great um yeah do you guys have Claire do you guys have margin in your budget when you budget month to month do you have money that you're putting away in savings just for other things is there um what does your budget look like yeah so typically in a month we put towards retirement and some other savings um about 1,300 um and then extra we have left over for like you know gas we we donate to our church um groceries household items you know utensils toilet paper things like that um so we do have you know we budget as quick closely as you can um with everything thing but just trying to figure out when before baby comes and everything else like how much more do we save um if and then that would only last us for so long and again this is only for a short period of time because our son could go to a different daycare when he's four um the oldest and it would be a third of the cost so it's not going to be forever that we would be in this predicament but just for a short period of time we're just going to be at a a higher daycare cost yeah yeah um yeah I mean I think in a perfect world you're finding that margin other places and what that looks like because that 15% um is I mean that that's a key part for you guys in the future and so I don't know what what other lifestyle um expenses look like of of of Shoring those up maybe you know saying hey we got to find some margin other places um in that budget because you know I think that's the hard thing too the reality of like oh my gosh kids they do they cost they cost lot especially when you're talking about something an expense like daycare it is it's so pricey um so yeah I mean in a perfect world you're going to you would find that extra 1300 elsewhere but for you guys um you don't you know at that point though you don't have an option and for me CH 30 for $30,000 a year I'm going to start looking at Alternatives too I'm not going to just accept that as the only possible method yeah and that's something I started to look into as well um one other option we discussed was um not contributing to the 529 plan for a little while for our son because my mom's can I'm talking about other daycare options yes that too when we have looked at other 30 30,000 bucks yeah but 300 $311 a week I mean that's pretty standard I mean like that's not unreasonable that's not an unreasonable amount when I but it gives me a lot of thoughts when I start talking about $30,000 a year y um I can I can start thinking about a lot of different things then so um but yeah you know I would look at all that and I'm with Rachel it probably one of the last places I would go would be to the retirement I would do 529 before retirement yeah I would I agree I agree you so much I'd pull that off and then I I'm I really would honestly look at alternatives on the daycare because it's such an onerous amount as a percentage of your budget that they have priced themselves out of somebody who makes $120,000 a year and that's yeah they pric themselves out of it and so um you're not far from affording a nanny for 30k I mean not far at all so um I mean it can be done so I I the these I start thinking about it different it's kind of like you know if you're going to charge me $120,000 a year for a nursing home uh for $120,000 a year I can hire a full-time in-house Butler mhm yeah you can't do a reining bed yes I know I know but I know her feel and I've and I've done the research even locally like the moms that work here at Ramsey I'm like it is it's it is a it is a crazy expense and then you start and then you do you ask for so many women you ask the question is it even worth it right it's the 20,000 extra is so instead of making 121 we make a 100 is that worth right I mean like you you have to you play out all these different scenarios but it does this part though it makes me as a mom with little ones it is it it it it's so because they have trapped us in a sense it can feel like that with the prices they go up as people going going I mean when you raise price so they're open they stay open they're paying it when when price raises to a certain point the volume comes down that's Supply demand and so you're you're they're reaching the top of this because this has been a discussion like 10 times in the last year well yeah and and it's like 37% it's risen it's risen since 2020 I'm like it's just it's it's crazy it is crazy so they do they will end up and that's what we talked to so many women that just end up saying hey I'll just I'll stay home right like if you have three kids right I mean you start to actually I'm working 40 hours and after taxes and daycare I net five grand screw that right you know no thank you that doesn't make sense yep and uh she's almost there she's almost there not quite with her numbers but um well and the four-year-old will go to a less expensive school right so there you got you got to light it the in the tunnel with thata exactly I know but that's so hard Claire so hard I hope that's helpful yeah thanks for calling this is the ramsy show [Music] [Music] [Music] [Applause] regel Cruz Ramsey personality is my co-host today the best way to make the most of your money is by creating and sticking to a monthly plan people that win plan to win and that includes money and it's called a budget your budget should give every dollar an assignment every dollar a mission every dollar a name before the month begins and you and your spouse agree on it if you're married every dollar is our budgeting app the world's best budgeting app one of the largest these days millions of people joining in the last just little it's crazy y'all thank you so much by the way it's an easy to ous app that fits into your busy lifestyle you and your spouse can both have access to it see what's going on you can keep a pulse on your spending make progress on your money goals download every dollar for free in the app store or Google play today and you can even get it at every doll online at every doll.com just for your desktop if you want uh Briana is with us in Columbus Ohio hi Briana how are you I'm doing well how are you guys better than we deserve what's up so quick question so I'm going to keep this try to keep this short and sweet so my in-laws are on one income and my mother-in-law has not worked in about 18 years um around that time and she's just been making sure that everything's taken care of at the house and so my father-in-law doesn't bring in all that much uh you know they they pretty much they're okay but they don't have any term life insurance no I don't believe they have anything for savings um my father-in-law I'm concerned about him with his work um because he does have a risk of uh more he's more at risk for injury because of his health and so my question for you guys is you know with us children and daughter-in-laws and such is there something that we need to be doing in case something happens to our my father-in-law just hand handling your money I mean if you become wealthy the wealthier you become the more able you are to help right yeah and that's why I'm asking because I am I'm in my mid 20s and I'm trying to get a good handle on my money you know I'm starting the baby steps that's the best thing you can do for them okay is to get you strong the weak can't help the strong can't help the weak yeah and that's so how do you how would you recommend I best do this do I do a no just baby steps just go you go become wealthy if you've got money you'll have some money you don't have to have a parent account if you got a million dollars in a mutual fund and they have a problem you can help them right yeah it doesn't have to be it doesn't have to have their name on it should I do a high yield savings or no you ought to follow the baby steps okay exactly that's the fastest method to you becoming wealthy and the best thing you can do for them is for you to become wealthy okay but no you should not truncate your retirement savings and say or are your kids college and say I'm not doing baby steps four and five instead I'm going to have a a father-in-law account no thank you no no no no no no yeah and bana have you guys talked to them about their money like do you know all this for a fact is your husband like like you guys know this so we do know that they do not have really anything saved have they T have they said anything about what plans are is he just planning on working longer he's kind of just planning to work until he can't okay yeah and so I mean and too I would say this to Brianna I wouldn't be like overly stressed about it because at this point you can't do anything to help they can't help themselves right and nothing has happened yet right it's it's not like oh my gosh my father-in-law is now on workers's comp because he got an injury and my my mother-in-law now has to go back to work how do I help navigate the situ like there is no situation right now there could be so I think you know being wise about the people around you the family unit around you of saying this is our life and this could be coming in the future um but right now today yeah I'm with Dave you just yeah you guys you and your husband you guys start doing this you start walking down the baby steps and if you have the ability to help if they need help then you guys get to choose that at that point will is in West Palm Beach Florida hi Will hey how are youall doing better than than we deserve what's up so quick question for you I'll keep it brief uh long story short I graduated college last May and I moved back home in let's see July last July so I've been home got a job in November so I've been working um I make roughly $75,000 a year bring home 4,400 um I got my masses I let my mom hand all the finances for that uh so in February there was a little bit of a surprise to me that I was $70,000 in debt $70,000 student loan so I've been paying off those trying to throw about $3,000 a month towards those so I paid off uh roughly $6,400 um I've got $35,000 saved up and I'm wondering that's an an high yeld savings account so I'm wondering would it be wise to put that towards it right now yes or just continue and in the same in the same day that you do that which is today you take control of your own money you have a master's degree you're a grown man yep you need to manage your money not your mother and then right after that we need to start talking about where a $75,000 a year college graduate's going to live that's not his mother's house correct so three things yeah move out take control of your life and write a check and pay down the student loans ding ding ding ding ding ding ding and all of a sudden this stuff's going to start lining up for you like crazy what's your Masters in man uh Finance Investments okay good all right so so you can handle this then right oh of course okay good would be more wise yeah yeah yeah pay it pay it towards pay it towards the debt yeah let's get the debt cleaned up as fast as you can for 35,000 I mean you obviously took advantage of not having the rent to pay right living with living at your parents you took advantage of it because you have it saved which is awesome pay them R oh you do okay well I was going to say you have 35,000 saved so you're doing something right yeah you need to take over control of your own money immediately you need to make plans to move out in the next 30 to 60 days and have yourself a life and um you need to pay down on student loan as fast and furiously as you can because your number one wealth building tool is not interest rates your number well and wealth building tool is your income and when it's not going to someone else in the form of debt payments Building Wealth becomes fairly easy especially will for a guy like you who knows numbers and has done a great job of saving money you did an amazing job to Rachel's Point well and will I mean at this season of Life yeah I would do exactly what he said I'd go get a part-time job I would go drive Uber I would do something four days four nights a week and just make a crap ton of money right now and pay this off get this knocked out as fast as possibly can and just say for 12 months I'm going to just work and get this get this out of here because um because it can be done and you're in the perfect season to do it right I'm like you really are you're um I find you know there I mean I think it does get harder when there's another spouse involved right because you got you got another person to consider then you have kids and like as you kick the can down the road there there's more elements to your life that you're having the bad news is when you're single there's no one to hold you accountable the good news is is you don't have to mess with anybody else to make a decision to change your life that's right you can just decide to do it today y today it's great well and let me say this I mean I feel I I feel for you will because he had no clue he had the 70,000 he said his mom took care of all the money stuff during college and then he realized oh my gosh now I have 70 grand is that what he said it kind of surprised him so parents talk to your kids say it out loud have the discussion because that that sucks that happened one of my friends they went to pull a loan for a mortgage and on her credit report there was a student loan that they didn't know about no one no one said anything about it so communicate parents communicate this is the ramsy show [Music] [Music] n [Music] Rachel Cruz Ramsey personality is my co-host Jade is in Ottawa Ontario hi Jade how are you I'm good how are you better than I deserve what's up yeah so I had um a couple of question question so this year uh kind of fell on a little bit of Hard Times uh when it comes to finances so um I have roughly $237,000 in debt um 205 of that is in a mortgage and the rest is car loans uh line of credit and credit cards um so I'm a single parent and I am only bringing in roughly $3500 a month um so the debt is starting to become overwhelming I'm wondering if when did you buy the house um I bought the house in 2018 so the house is worth about $630,000 now MH cuz you don't make a ton of money the house doesn't sound completely unreasonable but my guess is what's your mortgage payment a month so um when I first got in the house I had a a really low rate um but now that I've had to renew um my mortgage payment has went from $1,000 a month to $1,400 a month okay um yeah I mean you're bumping up close to 50% of your income being your mortgage yeah and then um I had um why did you not take a fixed why did you not take a fixed rate mortgage um so I did take a fix rate I had um um I had a fix rate before and then when I renewed I took a fixed rate as well why why would you renew if you had a fixed rate so here in Canada you have to renew it's not like in the US so so the rate the rate adjusts pardon the rate adjusts each time you renew yes so there's only variable rate interest rate mortgages in Canada I did not know that no there's F there's fixed it's not fixed if it if it goes up every year now you gotta when you renew how often do you have to renew so you can either choose a three-year fix or a fiveyear fix and the fiveyear is the maximum that you can hold a rate for in Canada wow I just learned something yeah unfortunately yeah well that sucks I did know that yeah I knew something around those lines um okay Jay do you see your income going up anytime soon um so the thing is I have a business and because of um all the money that I've been spending I haven't been able to um put much into marketing for my business so it's kind of been at a standstill is that your income is your business business or is that a side hustle it's my business okay all right so here's the Here's the the the straight- on solution okay you either sell the house or you get your income up because you cannot keep this house with this income it's not sustainable that's why that's where the stress is coming from yeah car payment credit card debt I mean it's a lot yeah well the car payment the credit card came because you couldn't afford the house and then when you can't afford the house you don't have any margin left to save so you rent stuff up on credit cards right exactly yeah yeah the house the house squeeze is showing up in the credit cards what do you do what's your business Jade um so I have a commercial cleaning company okay so we clean offices okay because you're making Pro I mean it's around I mean 3500 a month right I mean you're you're bringing in 45 a year I'm just wondering if you can find something that you're making 60 right I'm like just any up of are you fully booked um we're not fully booked okay I don't know why you have to spend money all you got to do is go knock on doors and get you some clients yeah yeah so I'm I'm trying I've been trying to do that I've been a little bit busy with the work and my son but um that's definitely something that I'm going to Ser if if you don't do that you're G to have to sell your house I was thinking would renting it out be a good idea no you don't need to be a landlord you're broke that's a bad idea yes it's a really bad idea yes either get your income up or sell it uh because you know you and I think you ought to go get your income up that's what I think you ought to do I think you're going to have to focus on this is a good I mean like you know 1, 1400 bucks a month is not terrible right and now compared to income it is but man if you can get that income up then that I mean you're in a good spot you have so much Equity I mean if you could get to 4,000 a month it's from 3500 it changes the whole equation automatically and then you can start working your way out of the credit card debt do away with those and start living on a budget and being in control but no there's turning yourself into a landlord when you're broke Makes You Broker uh landlords you need money to be a landlord you you need cash you need margin it doesn't make you money it it's it's a problem at first especially when you're this tight because this house is not going to rent for much more than than your payment so you're not no no no no no no no no don't go that way please stay away from that dimma is with us in Baltimore Hi dimma how are you one more time let's try it oh no we're going to put you on hold until we can get your phone straightened out Riley's in Salt Lake City hi Riley how are you good how are you doing better than I deserve what's up awesome thanks for having me um I've just got a question in regards to baby step two um working baby step two we've got two car loans and they're both underwater so I'm looking we're looking to go down to one car for our family to try and speed this process up um but I just don't really know what to do in the situation where we're we're underw what are your what are your numbers Riley what's what what do you owe on the cars and how much are they worth um so the we have a truck which was a dumb decision but it's it's got 36,000 left on the loan it's worth 31 okay and then we have a car um the loans 8,000 but it's probably about it's probably worth about 3500 okay and what are you what's your household income uh 90,000 okay all right and um do you have any money uh not too much really I mean we just have the $1,000 saved up from baby step one and good who said the truck's worth 31 uh I just like did Kelly Blue Book private sale or trade in private sale okay all right so you need 5K who do you owe the 362 on the truck who's the lean holder uh it's just a Local Credit Union Perfect go down there sit down talk to them tell them you want to sell the truck and sign a note for the difference okay they'll cut they'll let you do that because they already don't have fully collateralized loan meaning the truck is not worth what you owe so they're already have 5,000 unsecured right and if you just now have a 5,000 unsecured and you drive the old car until you get your mess cleaned up here uh which making 90 you'll be able to turn the corner pretty quick on this but you've identified where the source pot is and it's this truck it's killing you right right what other debt do you guys have Riley uh that'll be that'll be the last of the debt we so eight grand on the car and you'll be done yeah that's amazing that's great I mean that feels good right getting 31 off off knock that out and save up like crazy and either move up in the onec car family or move into a two-car family again and then move up one hops got you either one I don't care which you do but yeah I think you're probably moving back into the car business after you get the other one paid off and this gone and um you know uh yeah 4,000 sounds a lot better than 36,000 yeah yeah and that's great and then yeah save up and you get a used truck later yeah that's what I would do if I was in your shoes dump the truck and sign a note for the difference at the credit union and that like you said that just pushes it on out there open phones at 88255 225 a [Music] [Music] [Music] our scripture of the day John 15:16 you did not choose me but I chose you and appointed you so that you might go and bear fruit fruit that will last and so what that whatever you ask in my name the father will give you Bill Murray said whatever you do always give 100% unless you're donating blood my go that's funny I have not heard that's good Ross is in Dallas Texas hi Ross welcome to the Ramsey Show hey Dave thanks for taking my call sure what's up uh so I have just over $42,000 in student loan debt at a 5.625 interest rate and I'm wondering if I should take some of the contributions out of my rth IRA I currently have about a 60 ,000 balance and put them towards the the student Lo at no no simple enough I never I never take U money out of retirement to pay off debt unless it's to avoid bankruptcy or foreclosure um because that money is going to grow taxfree that you've got in there to such a large amount that it would just be disturbing to me that you lost a million dollar taxfree account for doing this and that's what it would be at your age how old are you I'm 32 yeah that's what I thought and so yeah so what's your household income uh 100,000 I I we be getting married next year and that'll make it about 180 oh cool and you and you only have $40,000 in debt yes sir oh so you'll be debt free in a year yeah good no I would not sacrifice my Roth IRA on the alar of a year okay yeah I just was looking at the repayment calculator and I you know just trying to consider as an option because the the monthly payments are I feel like you know really hold me back no no no no you misunderstand $40,000 in less than a year I don't give a crap what your calculator said I want you to pay off your stinking loan now you make a 100 you get R to make 180 I want that gone out of your income lowered your lifestyle if you make $180,000 a year you can't find 40K in 12 months you know now that's after you're married I understand when's the marriage uh should be next July okay good so I mean between now and then I'd love for you uh a year from July a year from this July yes sir okay all right so you have a year at 100K to work on it if you don't get it knocked out during that time shortly after marriage I want you to knock it out but I'd love for you to knock it out out out of your hundred or do you have the ability to work extra and do I mean you got anything else you can sell other than trash in your wroth but yeah that kind of stuff let's just get in attack mode and say I'm going to live on 60,000 which is just below average household income in America as a single guy for one year and knock this out yeah I mean after tax you get 100 after taxes 80 right so you live on 40 put 40 that's two years and like but then you're going to be married so I mean it's it's a process for sure but also I would say R El to go work extra up your income yeah you're making a hundred which is awesome um but it's just that again it's that singular focus of saying what can I do to pay this off earlier and run those numbers th those are numbers you could be running if I made an extra two grand a month doing this or you know whatever it looks like um there yeah there's power in that yeah and it's kind of a thing what if you made it into a game and said okay as a matter of personal Pride I'm going to walk into this marriage debt free now now game on just kind of make it a game you know and so okay now what have I got to do yeah lots of work selling stuff not going out to eat D and it turns into a game then um it it's not life or death but if you treated it like it was you could make it and that's kind of my point and then for sure for sure when you're making 180 if there's any left if you guys don't knock that out real fast that's pretty lame so now you don't need a payment calculator to figure that out 180 minus 40 or 100 plus overtime and extra jobs minus 40 that that the that's your calculator that's what you're dealing with and then uh minus lifestyle oh wait I don't have a life because I work all the time because I'm getting out of debt oh that's okay too I like that one that's a plan that you know I would just make it a matter of Pride I think be kind of cool and pausing too Ross your your investing no more contribution so wait so that could free up a couple thousand bucks too right a year depending on what you're putting in your WTH so that's that's good too stop all investing temporarily while you attack your dad that's baby step two okay uh for those of you that are new to this ramsy game Dan is in Atlanta hi Dan how are you hey Dave doing well how are you better than I deserve what's up in your world sir hey I figured you'd say that um so wanted to get your thoughts on something I am buying a house which is really exciting now I'm wanting to maximize my down payment and really when I started the year I wasn't gonna be buying a house so I bought a new truck uh that I paid cash for and so my question to you is should I liquidate the truck take that down or take that cash and put that to the down payment of the house just to enhance going beyond that 20% or would you say hey just go in at which you're doing currently what what is the truck worth 39,000 and what's your household income uh over a 100 okay and are you single no married okay and what's her car worth uh we actually lease her car for 200 a month no nothing down okay um well no I I would not worry about putting extra down on the house until we got her car paid off okay her car needs to be paid off you still have debt on it a car lease is not renting a house a car lease is an alternative form of financing so that is a debt you're in debt on her car and you need to clean that up before we talk about anything else so if you sell your truck or if you don't sell your truck her car debt needs to be going away very quickly and if you need to sell your truck to do that then that's something we can talk about um but that's you know you should be doing that before you start talking about buying a house and certainly before you start talking about putting extra down on a house we should be clearing her her debt on that or the debt on her car and um so that's the route to go there yeah and we always say anything with wheels and Motors not to be more than 50% of your take-home pay and of your income your household income of your household income and you're 40 Grand so you're I mean you're getting up there I mean it was a nice truck for what you make right if you include her car if her if her car's value is over 10 grand then yeah your truck needs to go on that basis you're right yeah you probably have too much truck and I think you kind of knew that and that's why you made the call so yeah let's sell the truck get you a decent truck out of the um out of the proceeds and pay off her car and whatever's left though that is extra down payment that's what I would do yeah but you that's a good point Rachel I didn't didn't keep up with that part of the math on this but yeah you can really get into a pinch there but that's great though saving 20% Dan I mean for a down payment that's that's a that's a conversation that again people have been having a lot recently with the housing market so we always applaud and congratulate there's other stuff for you to do before you do that but um but you guys have been saving really well so that's great yeah you're way ahead of the game on that um Rachel's right so congrats on that I'm glad you're getting and and you're right you know the way your brain's working is say okay what's more important how or cars well financially houses by far your personal residence is going to go up in value your stupid $40,000 trucks going to be worth 10,000 in about 20 minutes they go down in value Like a Rock that's where Chevy got that like a rock and so oh wait I drive a Ford no well that's found on the road depreciated f o r d so there you go it's all goes down in value boys and girls it all goes down in value so yeah that's yeah where you're you know so your brain's tell telling you I'm going to put money in something that's appreciating instead of depreciating MH it's like um I drove up in my 20s I had bought a Jaguar I thought I was a just such a fun I know that you I thought it was a ba but like I never hear of Jaguar it's not like a Mercedes or a BMW that I feel like is that's why I bought it cuz I come from a neighborhood where we couldn't spell Jaguars so so but I Grove up in my grandpa's like what's that and I'm like well it's a jaguar and he goes what that cost and it was like the 80s and it was 30 grand you know and holy crap yeah it was expensive and he goes that was dumb I'm like why is that dumb it's a nice car and he said it's going to go down in value I said what's an investment said my investments go up in value son there's a grandpa lesson right there that puts us hour the Ramsey Show in the books we'll be back with you before you know it in the meantime remember there's ultimately only one way of financial piece and that's to walk daily with the Prince of Peace Christ Jesus oh [Music] [Music]
