You Only Change Your Life When You've Said "I've Had It!"

this is the ramsay show [Applause] [Music] you can be intentional about your character you can have money and a career you are the hero in your story [Music] live from the headquarters of ramsey solutions it's the ramsey show where debt is dumb cash is king and the paid off home mortgage has taken the place of the bmw as the status symbol of choice this is the show where we help people build wealth do work that they really love and create amazing actual relationships open phones at triple eight eight two five five two two five that's triple eight eight two five five two two five joining me today my co-host ken coleman of the ken coleman show ramsay personality number one best-selling author talks to folks about their careers and their jobs every day we'll be answering your questions as i said about your job doing work you love about building wealth and anything else jump in and we'll talk so ken um a lot of stuff moving around in the economy yes a lot of inflation and recession worries gas prices are enough to give you a freaking heart attack god i filled up my raptor and i just about just laid down in the middle of the gas station parking lot and held my heart for a minute oh man i mean because you fill up a prius it's one thing when you fill up a raptor yeah it's another man i can only imagine wow i bought houses cheaper than that back in the day but oh my gosh it's it's a thing and you go to the grocery store and you you know you put your buggy's half full of what it was and it's just as much money it's almost like shopping at whole foods every day that's you know i mean it's like really it's crazy and i used to call it whole paycheck right but the uh uh you know it's it's wild out there the interest rates have gone way up on housing um house prices of course have gone way up in 20 and in 21 they're up a little this year um and everybody's you know worrying about a real estate crash now and and and labor cost to hire someone to get a job you know i'm seeing a lot of comments and stuff flowing through in our place right now it's like how do i how do i i can't even make it i mean i can't inflation has just destroyed what was left of my little budget um but in my mind when i hear that there's always two sides to each uh budgeting equation the in goes income side and the outgo side i also know that they're no longer paying people ten dollars an hour to put the bread on the shelves they're not paying them 20 to 30 an hour to put the bread on which is why the cost of bread went up by the way it wasn't wheat and it wasn't a shortage it's the cost of labor oh and the diesel fuel in the truck to deliver the bread oh yeah that's built into that so that's why your loaf of bread went up that's why sharon bought some bologna the other day and man that was a lot of money what that's just it's real food but sharon bought bologna oh for me yes homegrown tomato big red onion big old piece of white bread and that's better than filet mignon man don't you know anything i i just i know you have a very pride a little bit it's a redneck it's a redneck that was the same man frying the bolognese fried a little bit you put it on there oh man that's about it you could take the boy out of the way any sidetracked here but anyway the point being that if your budget is stressed ken and your salary is fixed it might be time to look that's correct because you might be able to make a whole lot more money somewhere else but be careful because you could jump over into one of these companies that have lost their minds and are doing all kinds of crazy butt stuff and then you get stuck in the middle of the crazy butt stuff oh yeah we're seeing a lot of that now the facts are just give you two different stories when you change jobs we've seen over the last year and a half you're looking at about a 14 on average pay bump well i would cover your inflation that's pretty nice especially if you adjust your budget you know i also saw a story recently on the news about this couple that's uh they're extreme frugal savers and budgeters probably our kind of people and they're like we're not even feeling the inflation i know that when we do these debt-free screams over the last six months inflation doesn't come up at all so there is a way to do it the way that we teach it works but uh let's give you some good news about the economy just reported on my show today that uh olive garden they beat their projections uh and what they've done they've kept their prices low and turns out families like a lot of free bread sticks and um you know bottomless salad but the point is my weight in both of those right but here's a story that you're not hearing in the media when a restaurant like that decides you know what we're going to keep our costs where they are it's costing us a little bit more but they got more people coming in because they're offering things so you hear all this bad news about inflation and the economy we also saw today reported today that for the first time in seven months home sales spiked in may so this doomsday stuff we need to get over it well it it's those are good anxiety and the fear around filling up your car and almost passing out is real absolutely right the anxiety and the fear over you know half the stuff in the grocery basket and it's just as expensive as real however what's just as real is there's almost an across-the-board increase in wages and if you haven't received that then you should talk to your employer because he's getting ready to have to replace you yeah that's right and there's opportunity like we've never seen before we still see a level what we are paying for a position at ramsey has changed dramatically in 12 months based on the marketplace that's correct in order to get someone to do x or y or z it is different than it was 12 months ago and that difference is at least 14 percent that's correct that's the average yeah so folks that's the average of people that change jobs so we'll take those calls today because dave's right we don't want to chase just a paycheck because that'll wear off if you're in a crappy culture with gossipy people you leave a good company and you go into a bunch of crap and they're doing the the woke agenda and then and you hate that stuff and you all of a sudden you're going to be spending all your money on your time on that instead of actually helping people doing work correct so um we're quite the opposite around here at ramsey we're kind of boring old dinosaurs and um and kind of proud of that by the way but the uh um anyway the the uh yeah so i mean you you make sure you're going to a company that aligns with your values maybe you want to do all the woke stuff then go you need to make sure they're doing all that stuff um a lot of them are doing you know they're going overboard with it because they're just virtue signaling that's correct and so if you leave a good company like i mean we had a young man that left here a while back and he texted this weekend and he's like oh god this place is a disaster that i went to and he got he got more money than we were paying him so he got a raise but he went into a mess you know and so be careful that you're not doing that or be careful you're not taking a job that you hate or be careful that you're not thinking something's you know what it was i had a another guy a friend of mine left his position because he was gonna work 20 hours a week from home for more money yeah now he's working 80 hours a week yeah from home well there's a lot more money yeah it's a mirage a lot of people well here's here's what's unique about ramsey solutions and we're always hiring so you know you need to be checking out ramseysolutions.com but we know from research i spoke about this at our entree leadership summit here are three human needs that we all want fulfilled at work number one we want to see meaning and purpose in our work we have a crusade mentality because we're giving people hope and real practical steps for life transformation at this company number two we want to be recognized for our unique contribution i can't tell you the stories of people that are executives here in this company who started out as administrative assistants and because we recognize people's hard work we recognize their talent we give them an opportunity to get promoted they do here i'm sitting on my operating board two of them and then the third thing that we need is we want a relationship with our leader i cannot tell you how much this company cares for its people it's a real relationship with the people that you report to if you don't have that find it somewhere yeah find it somewhere and make sure if you're going for more money that you get that too or else the money will be you'll be hating your life all for a few bucks that's right but you can help with inflation by either an upward a raise at your current place or a uh a move to somewhere else well i work for the state well maybe it's time to move somewhere else they're probably not going to give you a 12 inflationary raise this year and you probably can get it somewhere else this is the ramsey show [Applause] [Music] [Applause] [Music] [Applause] [Music] chaos that's what it can feel like when your business is growing so fast you've outgrown your financial and accounting software the faster you grow the more likely you are to lose control of the numbers and here's the reality if you don't know your numbers you don't know your business that's why we use netsuite by oracle the number one cloud financial system over 28 000 companies use netsuite by oracle including ramsey solutions because netsuite gives us a single view of everything we need to make daily decisions whether you're making a few million to hundreds of millions a year netsuite gives you the visibility and control of the things you need to grow like your financials inventory hr planning budgeting and more all in one dashboard go to netsuite.com ramsey right now to get their free white paper jump start your cfo career [Music] ken coleman ramsey personality is my co-host open phones at triple eight eight two five five two two five jackson kansas city hey jack how are you i'm doing very well how are you doing better than i deserve what's up uh i had a question about uh purchasing a vehicle in today's climate for my life uh the it would amount to purchasing two vehicles at the same time basically okay so riddle me what are you talking about well i've been i've been driving a vehicle for about 20 years as my everyday vehicle i inherited it from my father brand new basically he he bought it brand new and then got diagnosed with a terminal illness and ended up passing away soon after and so that was about 19 and a half years ago i've been driving the car it's a subaru race car um long story short i've been taking it only to dealers and my local dealer kind of wrecked the last time they serviced it trying to install a clutch and destroyed the transmission and did a bunch of damage and basically ruined the car for me so they're going to pay you for the car uh they we made a deal we came to a deal oh that avoided anyone going to court and so they're going to sell me a new car and give me a bunch of money off on it basically the equivalent of the value of the other car yeah plus a little bit over i think because well yeah i'm sure there's margin in that thing so there's margin in them that are there so you're getting a brand new subaru yes okay so that that deal is done oh base model basically that deal is done and what are you spending there what are you spending on that car uh it's gonna cost about 25 000. okay what's your household income our household income is about 200 okay and you're wanting to spend one on your wife's 20 20. so here's the thing the dealer felt bad and he told me i told him my wife needed some work on her vehicle as well then and he said he would give her the same deal he's given me if i wanted to buy her one so i wasn't thinking about getting her one before he said that he's going to give you the price of your old car off of your wife's and your car or just a good price going to give me all the money he's given me off my deal and he said he'll do the same thing for her he'll give her the same money off as if he wrecked her car and just because he feels bad he says how much how much value how much did they give you for your old car for the old car uh it's leaking out of the head how much money did they give you for your old car oh for my old car yeah uh they basically gave me about four or four thousand for my car okay and and then they knocked off how much more the car then they knocked off how much more they knocked off another three okay so they're gonna knock 7 000 off of another subaru if you buy two in a row basically yeah and and your wife is driving what now she's driving a subaru that's uh what's it worth got 100 uh that would be worth about seven or eight except that it's got to have the leaky head gap because that's what's gonna cost three four all right so it's gonna it's gonna you're gonna be able to sell it for five right yeah if i fix it no if you don't fix it if you fix it it'll sell for yourself maybe or eight yeah yeah yeah yeah it's just it's drivable it's just got a leaky head gasket and it's an old freaking subaru now what is your network what is your net worth net worth i just did a calculation i think our if i go by just net worth we're at about 230ish thousand i guess okay between equity you have the cash to pay for all these cars no well only if i take money out of a roth account or something so no we're not buying these cars we're not buying cars without i only have the cash to pay for one car okay okay um but my mother's been telling me you know maybe i should be buying some reliable cars for you yeah maybe you should but maybe you shouldn't be going and taking your retirement money out to do that you probably i'm going to pass on this i'm going to pass on the second one because i don't recommend people buy new cars they go down in value like a rock except for in the last 12 months um uh unless they have a net worth of in excess of a million dollars because that way you can accept the blow on that so i would save up some money and i would buy your wife a better car that is used and i would forego this sweet dealer's offer which is really not that great an offer anyway it's an okay offer but it wasn't like he gave you like half off the stinking thing or something so yeah he basically gave up his margins is what he did and he's got you back on the hook for more work in the uh and everything else in the in the shop but no i i'll pass on the second one i would save up and buy her a better car and cash for it and i would not cash out my retirement but we don't borrow money to buy cars we don't buy cars where the total of all your vehicles is more than half your annual income and i don't buy brand new cars unless they're a million dollars unless you have a million dollar net worth or greater and here's why because they go down in value and you need to be concentrated on things that go up in value yeah and and in this situation i'd go and fix the subaru for the wife and then save up save up you're going to get a decent amount i think dave you're right going to get seven or eight for it if it's fixed up and then you put that into the savings and all of a sudden we've upgraded pretty substantially without any kind of debt it is doable people get the itch and i don't i don't fix six thousand dollar cars at the dealership either no i fixed six thousand dollar cars independent mechanics where the cost is about half of what it is to fix a car to dealership and so um if you have a brand new vehicle and you know whatever and you spend a ton of money on it you make a lot of money and you want to take it in for the dealer to service it that's one thing but you don't take a six thousand dollar car into a head gasket job into the dealership you're gonna pay double what you'd pay with an independent good mechanic shopping around so do some shopping around i i'm not doing it no no so a subaru with a hundred thousand miles is just getting warmed up yeah well that's okay i mean i don't mind him moving up and no but you can by the way i forgot to tell you the federal law too wife gets the good car that's the federal law so that means she gets the new one you get the one with the bust the head gasket y'all about to trade cars out so this is how that works that's a marriage thing they're just helping you oh open phones at triple eight eight two five five two two five dylan's with us in scranton pennsylvania hi dylan how are you hey good afternoon i'm doing very well how are you today better than we deserve sir how can we help good uh so i have a general question i took a job with a church in philadelphia last year in september they offered me a 60 000 salary but it's basically a package deal i'm currently 23 years old i'm married i do own a house with my wife we purchased in december of last year and basically part of the deal is that right now i'm on my parents insurance but the church does offer full health insurance full medical but i'm gonna lose eighteen thousand dollars of my salary so the church is paying me that eighteen thousand dollars currently so i'm bringing home like fifty eight thousand dollars your insurance would be fifteen hundred dollars a month i have no clue and i i had worked for uh walmart prior to this and i know the family insurance was a lot cheaper and i'm just trying to navigate how to approach this because i don't want to get two years so basically from from now two years from now i'm going to lose 18 000 of my salary due to health insurance small church um not quite um it's a larger church they employ 350 people they do have a full school their health insurance plan sucks yeah it's bad but you got two years yes i have two years to prepare for this so the reason i wanted to get your professional advice on this was that i'm trying to navigate what to do so currently i am a property caretaker and i'm an apprentice to literally every trade so i'm learning mechanics i'm learning plumbing electrical everything with this job do you want to be full-time ministry or do you want to add one of these trades as a part-time gig to supplement which one i think my desire is to be full-time ministry do the trades on the side to make up for the increased cost of insurance you got two years to figure this deal out go shopping on the health insurance and see if you can't buy in the independent market cheaper too but i would stay in the ministry seat that's the seat you want to be in don't let health insurance drive you out of your dream yep [Music] [Applause] [Music] look i love real estate and i want you to have a house but i don't want a house to have you that's why you need to get in touch with churchill mortgage to make sure you do this right these guys are awesome they'll help you get on a smarter mortgage plan because they're committed to doing what's right for you that means they check in every year with free consultations to help you stay on the right plan they show you how to save money and interest so you can build wealth faster they walk you through the total cost of your loan so you can make the best choice basically they care that's why we call them ramsey trusted you can achieve debt-free home ownership and churchill is here to help go to their site churchhillmortgage.com ramsey to start your approval or get more information [Music] [Music] [Applause] [Music] ken coleman ramsey personality number one best-selling author is my co-host today in the lobby of ramsey solutions on the famous debt free stage anthony and larisha are with us hey guys how are you doing well great where do you all live morristown new jersey all right and that is near right outside philadelphia oh 15 minutes okay cool welcome to nashville looks like you brought the teenagers with you what are their names and ages aisha and joshua mm-hmm aisha's 20 joshua's 19. okay not quite teenager sorry about that all right very cool good to have you guys all right how much debt did you pay off well we paid off a hundred and eighty thousand dollars in in 48 months good for you and your range of income during that time uh we started out at about seventy thousand and this year we are looking to make about two hundred thousand whoa whoa nice jump what do y'all do for a living i'm an executive secretary and i lead a shared services team oh very good okay cool so nice income jump the income jump early in that 48 month track or late in that track later on late in the track and also i i've got a consulting business that i had but i decided to actually start working it got okay so is that what that did you sell something big too no okay you just cash flowed your way through this so maybe 45 000 uh did i do that right yeah forty five thousand dollars a year roughly fifty thousand dollars a year average through there good what kind of debt was the hundred and eighty thousand we paid off our mortgage whoa way to go weird people normal's broken you guys are officially weird how old are you two i'm 50. i'm 50. all right 50 years old with a paid for house what's this house worth it's worth about 500 000. i love it and how much is in your retirement accounts well we're not quite there yet we're about a hundred thousand shorts from being millionaires all right this is a 900 000 net worth and you're 50 years old yes and you're making 200 a year right you rock we do i love it way to go man that is so stinking cool so you're gonna be in there in 20 minutes stock market goes back up you'll be millionaire right then that one thing oh my gosh man way to go guys so proud of you so what starts this journey four years ago i mean you're like 45 years old and you're sitting around and go uh we gotta change what happened we did um dave we were uh davish for like ten years and we had never heard of you and well then you couldn't beat davis you were just ish yeah we were ish yeah we were following larry burkett and never heard of you're larry is hilarious okay and then we heard this guy than i am he is he is he was yeah yeah yeah yeah we thought we were doing all right and then uh we were living in michigan we kept hearing people talk about this dave ramsey like who's dave ramsey and uh it pivoted something in our heads and then we moved and next door neighbors to our left they were always going away seemed like like they had like a summer house and just the peace about them made us stop and think wow we we'd like to do that and then we had some other neighbors both of them all very nice but uh just working hard always seemed tired working on the boat always problems with the boat we said we have to make a change we're looking at our kids and we had another friend a little bit older and he was doing a lot of good stuff in his life and we said all right we're mentoring people we've got aisha and joshua and we're seeing how listening to you and the tools that you give what it's doing to their lives we said we need to do something different and we hit it hard every little bit of money money from the consulting work anthony was doing in our job we put it towards the mortgage yeah so you're making like 70 you sit down you look you got 180 000 we crank the shovel up we can get out of this whole quick that's right yeah yeah it makes it believable makes you want to go do it it really does gives you hope based on our income i thought i said well i can do a little bit more consulting i think i could do it in about seven years but then i said you know what something happens when we do the dave ramsey plan when people do it i said i'm going to do it i'm going to put four years down as my marker and we hit it exactly four years i said oh i probably should have put three years down yes interesting i want you to stay on that thought i know where you were going because we've been here we've watched a lot of these stories so you put that out you said something happens to dave ramsey people right uh i want you to unpack that a little bit more what do you see because that's coming from your view you saw okay i've seen this so i i shortened my goal what do you think happens when people get focused well i think you just start concentrating on what you want to do right if if you need money to pay off a mortgage then you're going to find money that's right our income went up because i was working in a non-profit job i've heard dave say a lot of times you don't have to only do good work in non-profits so i got a for-profit i worked with a for-profit company doing very similar work but i did at the nonprofit yet my salary just went up quite a bit and then when i started consulting more something interesting happened too as i started paying things off more i didn't need the money consulting like i used to so then people would people kept calling me saying hey can you work i said no i'm busy oh oh please come work with me i give them some number that i thought was appropriate and they just pay it i said well isn't that interesting what happens when you when you when you change your perspective when you're not desperate anymore people respond to that and the income goes up there's something about boldness right when you're bold and you put yourself out there then providence moves it's a wonderful quote by a german philosopher gerda used to say that when we step out we're bold providence moves in ways that we never could have seen possible and that's your story it's really amazing wow that's fun way to go you guys well we also wanted to say that so aisha is she's going to be a senior at in college and joshua is a sophomore in college and both of them are going through college debt-free wow yeah they've got scholarships they're working you know yes they're hitting it hard they're doing a fantastic job so we wanted to be sure that we absolutely so what are they studying and where are they in school well aisha is going to graduate from rutgers she's going to be a speech pathologist way to go scarlet knight all right and josh was in uh in community college he's a business major great good great two good roles good decisions yes well done good careers oh man you guys are so smart you have completely changed your family tree you're amazing you're amazing heroes look at you i love it way to go you guys there that is amazing so well done so very well done all right we got a copy of uh the baby steps millionaires book for you because that's the next chapter in your story as we said you're about 20 minutes away from that so maybe by the time you get home it'll already be across the line but right there and also a copy of total money makeover for you to give away and uh the financial peace university uh membership for a year the brand new videos in that that just came out best financial peace university we've ever had if you've already been through it you want to give that away give that away with that total money makeover book you can it's all yours just to say thank you for making the trip to nashville and to say we're proud of you we are very proud of you thank you so much thank you incredible people very very well done anthony and larisha aisha and joshua from uh the philly area making a hunt are paid off 180 000 house and everything they're weirdos they did it in 48 months making 70-200 count it down let's hear a debt-free scream three two one [Applause] i love it man so powerful ken the thing that i didn't understand when i first started teaching this stuff the borrower is slave to the lender when you're out from under slavery more things come loose than just the math yes yeah and that's what happened with this consulting work i generally find that people make different better wiser more lucrative career decisions when they don't have a knife hanging over the top of their head anymore yeah it's true because they don't have this sense of desperation they walk different than a slave does you talk different than a slave does it change me i made different business decisions with cash than with debt oh yeah i make better business decisions when i don't feel threatened by the marketplace i'm not threatened by inflation i'm not threatened by real estate prices i'm not threatened by the cost to fill up my raptor even though it does make me want to pass out but i'm not threatened by it because i don't have any debt yeah and it puts me in a completely different position and that's what happens your income generally will go up more rapidly and more and and both not only will it go up more but it will go up more rapidly than if you were not working a plan because you're an independent thinker you walk with a swagger it's a different world yeah it's a big deal well done i'm so proud of those guys what a great family change their family tree debt-free college and everything this is the ramsay show [Music] [Music] well it's time for us to talk about the real estate market everybody's asking a million questions should i wait to buy a house is it a good time to sell is the housing market going to crash what's going to happen with interest rates on july 14th we're hosting a free special live stream event called real estate reality check george campbell rachel cruz and i are going to answer all your questions unpack actual data not your brother-in-law's emotions not somebody that watches too much fox news or cnn where they're in freakout mode they're at we're actually going to look at actual data and history and put this whole market in perspective and uh we'll go ahead and spoil our alert tell you the market's not going to crash and we're going to show you exactly why and what you're facing this organization at ramsey is always about telling you the truth as we can perceive it as we know from 30 years of experience in these markets and the truth usually revolves around hope we're not in the business of selling fear porn we're going to just tell you the truth and it's not necessarily even exciting actually what we teach people to do live on less than you make live on a budget these are not exciting things the results however exciting you deserve to make decisions based on facts and not fear if you're wondering whether you ought to buy or sell a house or the housing market's going to crash what makes it crash how this stuff works this live stream is just for you we're going to spend about an hour unpacking all of that it's completely free real estate reality check you need to sign up for it in advance it will be july the 14th just a few weeks away go to ramseysolutions.com realitycheck ramseysolutions.com realitycheck our question of the day comes from blinds.com find out for yourself why blinds.com is the number one online retailer of custom window coverings with free samples free shipping and new promos they run all the time you'll save even more use the promo code ramsey to get the best possible deal today's question comes from nathan in indiana i'm 22 years old and currently work 32 hours a week at 19 an hour building crates for artwork it's a far better job than i've had before my employer is great but i'm concerned because it offers little advancement i can't decide whether i should continue with this current job or take a risk and get a different job in a trade like electronics or construction where i'm guaranteed pay increases with each year of experience trade jobs are high in demand where i live so apprenticeships are easy to get my goal is to be financially independent as soon as possible should i stay where i am or pursue another career it's going to be both and you're going to stay where you are until you've figured out the trade you want to be in if in fact that's where you want to go and you lock in that apprenticeship so what we really want you to do is stay where you are until you find a new ladder to climb love that you want financial independence i love that you've seen that hey i'm limited here i have a lid on where i am and that's okay don't accept the lid but we don't just jump there's nothing romantic or exciting about that at all it can be financially devastating so stay where you are until you find that new opportunity to step into and dave i'm very excited about this question because you know america our american economy really was built on apprenticeships and this idea of the paid apprenticeships in the trades is certainly still very much alive it's a great way to get paid to learn and i love this option nathan really good question yeah absolutely so i'm reading into your words nathan as ken was into how you used your words even the sentence structure and the way you're asking the question i'm a little bit afraid and i'm gonna warn you against you take a 23 an hour job and you leave a 19 an hour job because it's in a trade and it represents good advancement but it ends up being something you hate and you did it for four dollars an hour and for advancement in something you hate if you advance in something you hate it means you hate it more don't do that okay so ken is right slow down a little bit and let's the trades are valid it's a great place to make a lot of money there's a lot of welders and diesel mechanics making 100k making a lot more than somebody who got a degree in left-handed sociology puppetry from medieval art or whatever right i mean you get these ridiculous degrees now and you pay 200 000 for them and they're useless makes you a barista and so um that's you you don't want to end up there so i i applaud you on your direction you're being willingness to do hard work build crates to do trades with your hands and uh now but what you really have got to get into is not the near term or even the next five years but think out 40 years okay are you do you still see yourself as an electrician when you're 53 or 63 and then if that's the case and you think that's a great by the way being electrician's a great trade but if you don't see yourself doing that if you're only doing it for four dollars and because you can make more as an apprentice and that feels better than being in a quote dead end thing unquote um that's the wrong move yeah and and that's what i like about the apprenticeship i'm getting paid to try it but before we even get to the apprenticeship how do you do this well you've got to spend time with some guys that have been doing it for 25 30 years yeah and and they're going to tell you the ends the outs the ups the downs do you want to take that trade and then eventually become an entrepreneur where you start your own business in that trade so it's absolutely the right advice dave you got to look at the long view and it's got to be about heart it can't just be about head what i mean by that is it can't just be money related i've got a really fine meaning in the work and have an opportunity to make a lot of money samantha's in houston hi samantha ramsey show hi dave thank you so much for taking my call sure what's up so my husband and i have about 150 000 worth of debt 90 000 of which is car loans um yes it's insane um we have talked about um selling our vehicles i went to some places and got an appraisal um both of us are quite upside down on the vehicles you must have rolled some negative equity from the other deal into it yes well i guess so i mean when i traded my car in i thought that i was right on par but i was not and my husband knew he was negative um so we i went to my credit union i asked them to vote negative into a personal loan they denied me two different times um i am just at a loss what to do right now our car notes are extremely high so tell me about car number one what is it okay so card number one my husband's truck uh the loan on that is 53 000 and um it's a ford f-150 the car payment is 1034 dollars good god sure all right and um what the uh uh what did they tell you that that was worth um they're telling us that it's about twenty thousand negative so thirty three thousand is a value how many miles on it oh this is truck yes uh the how many miles i believe it's about 40 000 miles how old is what year is the truck 2019. uh go to kellybluebook.com yeah that's garbage that's bullcrap that's a dealer offer did you get more than one place to look at this uh yes i he went to um a ford dealership and he's also talked to carmax i talked to carmax today actually and got an appraisal on mine that's probably got to tell you about that next okay um that sounds very low in this market okay for sure used cars are still selling very high i would check kellybluebook.com and start looking at a private sale i'm shocked to hear that a 2019 is 20 grand upside down now he rolled some negative into it to start with you said that but that's a lot okay and then and your car then is what it's a 2020 ford explorer um the car that the loan that i that i owe is thirty six thousand uh payment is 573 a month and uh today i got an appraised at carmax for 27.5 okay well that means you can get uh 32 for it private sale probably so that one's that one's within striking range what's your um meaning you could go get that other 4 000 out of your income in the next few months uh what's your income our income is 140 000. that's good news okay all right yeah i'm sorry yours is probably going first because it's easier to get rid of right because it's closer i'm also going to check the numbers because i want to make sure he didn't just not want to sell his truck oh i i don't think that's what it is but but yes please check it's just it's like those numbers just don't feel i mean i haven't pulled it up and looked at it but that feels awfully wrong but yeah you're right a thousand dollar and a six hundred dollar car payment those are two good things to get rid of and you get to get you a hoop a couple of hoopties because y'all been doing stupid car disease for a long time bless your heart i'm sorry you are stuck in a mess you have identified the problem kiddo and now the trick is to get out of it you do any good over there yeah let me tell you right now private market is where they need to be looking they're getting a dealer offer oh yeah it's trade-in value but the truck did it did you find anything on it yeah i found some stuff you're looking at 45 to 55 000 for that i didn't think 33 was right okay this is the ramsey show hey folks ken coleman here did you know the ramsay show is one of the most popular podcasts in the world it's your daily dose of advice on life and money check out all of our shows from the ramsey network wherever you listen to podcasts [Music] this is the ramsay show [Music] you can be intentional about your character you can have money and a career you are the hero in your story [Music] live from the headquarters of ramsey solutions it's the ramsey show where debt is dumb cash is king and the paid off home mortgage has taken the place of the bmw as the status symbol of choice we help people build wealth we've created more millionaires by showing them how and causing them to do it than most anybody else out there we help people do work that they love find place to make a lot more money and doing something you actually love we help people create and maintain actual amazing relationships as opposed to digital relationships did anybody ever tell you those friends on facebook aren't real friends well maybe someone should tell you that they're not your real friends dave they really like my cat they won't they like your cat laser pictures they won't show up at two in the morning when your tire's flat i'll just tell you that's true open phones at triple eight eight two five five two two five ken coleman ramsey personality is my co-host today as we answer your questions about your life and your money starting off this hour's david in boise idaho hi david how are you hey fellas how you all doing better than we deserve sir how can we help um so my question comes i'm looking for some advice i'm in this eight-year beautiful relationship with the woman of my dreams and she's very much the free spirit and i'm very much the nerd and i'm trying to reel all of that in i've got the bug for getting debt free i think we accumulated probably about 60 000 in debt we both you know i think we're bringing about 10 000 a month but she's an in the moment person so and i'm trying to she wants me to do it first and then she'll jump on board once she sees me start tackling it and then she said she will join me but i'm finding that very frustrating in a sense that she'll blow through some paychecks and then i'm dipping more into my budget than than i need to be doing so i guess my question would be how do i by the way i mean is that possible because i find it it's just frustrating and it's causing more fights than anything how old are you uh we're both 38. okay all right well um let me first uh let's reset the stage there's not a we you're not married right you're having an argument with your roommate about how your roommate handles money and that's that's a that is a relational problem but it's also a financial problem because it's very very difficult uh to pretend like you're married financially when you're not because the whole dynamic has shifted because there's all the legalities involved um you know there's no there's no incentives involved you're still just shacking up and you're 38 years old and so you're gonna you're really gonna struggle trying to pull this together and act like it's marriage when it's not i'll just tell you from 30 years of coaching people that's the truth and i'm not trying to pick on you or tell you you're doing something wrong i'm just telling you it's a very difficult dynamic to pull off um so what i would do is um eight years is you know you're asking us what we would do here's what we would do here's what we tell you to do if you're a son i've got a i've got a daughter your age if you're my son i would say here's the thing to do eight years long enough time to paint or get off the ladder you know you know you need to decide whether this is real whether it's going to go forward or not we're not just shacking up for sex now this is a real thing and so we got to make a call here uh that's what i would tell my son if he asked me and um and he was your age and so you're gonna struggle to prosper it relationally until you make that call and you're gonna struggle to prosper financially and with the arithmetic while you're trying to make that call because she's legally got a set of responsibilities you legally have a set of responsibilities and they legally are not combined the law all of the people you do business with everyone recognizes you only as two individuals instead of one household unit and yet you use the words we like your income is somehow combined it is not you have zero legal access to each other's income at this stage of the game so that's what i would tell you to do number one number two then is as a part of that process get some good pre-marriage counseling and start to work on these differences in your identities and in the way you're approaching money there's nothing wrong with one of you being a free spirit and one of you being the nerd as a matter of fact that's most couples that have successful marriages they learn to navigate all of that but when we as a husband and wife have a vision for the future and we are committing to becoming and staying debt-free so that we can travel the world buy nice cars be unbelievably generous and retire with dignity change our family tree then we need to stick to the plan that we both agreed to but there's not a we right now yeah and i'm gonna go back to something you said david uh dave dave gave you the fatherly advice i'm gonna be your big brother for a moment uh you said that her response to this was well i want to see you do it see you live out the baby steps and then i'll get on board so my quick question i got a couple things here are you living it out are you attempting to do it with your paycheck yes and so she's seen me do it she's seen you do it for how long i've been going steady for about six months okay so for six months right so she's seen you do it for six months and she's still on the sidelines as your older brother for just this call i have some real concerns here because the woman of your dreams could be the woman of your nightmares if she doesn't get on board here and i appreciate what dave is saying but i got to tell you i would be having a serious conversation uh before you decide to get married even before you go into premarital counseling and i think it comes down to this i think you got to stop trying to convince her and i think you got to harness her dreams in this conversation and cast some vision and it's a simple construct hey here's the problem in the way that you're living with your money this is what it's going to lead to this is what it's gotten you to here's the solution this process i've learned over here and if we do this it's going to give us financial peace and then our dreams can be bigger than ever and we can do this dave i got to tell you i want him i want to know if she's going to catch this vision before they even get serious about marriage because that really concerns me because of the the rate of divorce you know if she can't get on board with this yeah you got well that's what i'm saying in pre-marriage counseling yeah or some other way you've got to get on the same page um or this is going to end poorly because by the way it's going to end poorly anyway that's right if we don't fix this it's just going to be an ugly breakup that's correct you know and now we're going to be fighting over who gets the mustard because we got confused about who had the who what where the condiments in the refrigerator came from you know i mean mayonnaise is mine dead gummy and so you know i mean that that's what you that's how you fight with your roommate you don't end up fighting with your spouse that way that's right it's a different fight with your spouse so yeah you you you guys need to be going okay where do we want to go financially with our lives and what is the best route to get there not i'm your daddy and you need to behave yeah not you have to prove it to me because i don't think you can do it and i think this is unrealistic and i think you're going to fall off the wagon and then i'm going to have an excuse to not follow through instead look at it and go as a couple where do we want to be in 40 years and what are our steps to get there i did pick 40 years not so randomly yesterday was my 40th if you haven't seen the picture go to dave's instagram account it is she's perfumingly beautiful she's absolutely a beautiful woman now but i mean and the amount of hair you had i was the ass guy i was a pretty good salesman i'm just saying that's all i'm just saying and so yeah but i mean can you imagine all the stuff we've been through two hillbillies fighting for 40 years oh my god brutal this is the ramsay shout [Music] [Music] if you're looking for ways to update your home without blowing the budget i've got it for years i've been telling you about our friends at blinds.com blinds.com makes it simple to shop top quality blinds shades and interior shutters from home with easy online ordering and free shipping with blinds.com there's no need to renovate your entire home just change out what's on your windows with upscale choices like faux wood blinds cellular and roller shades or even outdoor shades plus blinds.com guarantees the perfect fit whether you do it yourself or you have them measure and install everything for you shop their latest looks and see how much you can save at blinds.com today the easy and affordable way to make your home more beautiful is blinds.com [Music] [Music] [Applause] [Music] [Applause] [Music] ken coleman ramsey personality is my co-host today marks with us in st louis hey mark welcome to the ramsey show hi dave thanks for taking the call sure what's up i was wondering about donor advised funds and trying to use that as a way to be able to increase the amount of giving we're doing as a family as well as for the kind of one-time giving if there's just something that comes up having a good area where funds are growing to be able to give out of uh one of my mentors had told me it was a way that him and his wife had up to their giving by about 50 when they started doing it and hadn't heard it mentioned it all on the show before okay uh well they're excellent there are several excellent ones uh out there that do a good job uh the concept of donor advised funds is obviously the uh you are the donor you're placing money into an account and you have to advise the fund where the money is to be given to um and it has to be to a 501 c 3 in that case okay so otherwise if you don't then it's not gonna there's no tax advantage to it whatsoever uh you'll get yourself in a pinch so you you know it's all the 501c3 it does not increase giving unless you just increase your giving it's just a vehicle through which you pass money directly to the nonprofits the only big difference is it encourages you to keep it top of mind giving and it helps you systematize your giving somewhat which is all good and what to your point earlier it allows you to hold money past the calendar year and so if you don't want to give if you don't have a a a ministry or a non-profit picked out that you want to give it to and you want to put 50 000 aside in december you can do that and write that off as a charitable gift and then decide later who to give it to but it has to be given to a non-profit in that process that makes sense yeah absolutely absolutely uh no that sounds very similar to he's he was saying that increase in giving was as much that once you've put it into the fun there's no longer that hesitation of it's coming out of your checkbook so it was more of an intentional if i put this month this much in on a monthly basis you don't accidentally book that trip with the money that you're planning on giving good yeah okay i agree with that but i mean once i set money aside for giving in my mind it's gone i don't i no longer emotionally struggle with that but i'm so freaking compartmentalized after all the years of doing it and so we we moved in in the direction of a personal foundation which is a the next step up uh much more expensive to operate much more expensive to put in place donor advised funds costs almost nothing to run and so but we wanted to be able to do some things with some individuals like a single mom or something like that buy somebody a car that was uh struggling or something like that without them having to be a 501c3 and all and so donor advised wouldn't work for that plan but it works perfectly for what you're talking about and it is a really good uh intermediate step for your first level of outrageous generosity it's much better than just leaving the money sitting in a checking account and accidentally buying a couch with it yeah i agree with that yeah yeah and then i think we're on the side like if it's a give somebody the car type option let's just run those out of the checking account do it as a gift donation right off on those instead if we're not i mean just my wife and i we're not anywhere near the level of the foundation at this point in time yeah yeah it's a good it's a really good first step and uh there's uh there's two or three that have been around a long time uh they've been very popular in the evangelical christian community uh larry burkett ron blue uh both uh made them popular have served on some of the boards they're both friends or were friends larry's past ron is still still a good friend they both that's the first time i ever heard about it and the generous giving guys out of uh chattanooga tennessee do a lot of work with outrageous generosity as well uh particularly in the faith spectrum and uh they've been tied into some of the donor advised funds it's a really good way to look at it so it's a good question thanks for calling us can the giving part of what we teach is essential to winning because it releases you if you can compartmentalize it like i'm talking about or you move the money over into that there's something that happens once you decide the money's not yours yeah well and your behavior as you said we've decided we're going to give this much and so we live differently we begin to see the return on investment in a different category when we're really given intentionally you begin to go wow this is legacy stuff not just uh 401k mutual fund stuff not there's anything wrong with that but it really does change your entire perspective and you know what's interesting is that i think that that you you in some way set yourself up and i don't want this to be misunderstood that if i i'm gonna make more money i don't i don't believe that uh as an action but i do believe that your behavior changes and your perspective changes so much that there's a good chance you're going to end up making more money because of that change in perspective and belief well i mean let's just face it we all can smell a taker versus a giver that's a good way of saying that yeah and when you are a giver physically logistically uh it changes the way you smell it changes the way you walk it changes the way you smile you're the person that opens the door for somebody that's got their arms full of stuff you know the taker just runs through and doesn't even notice they're there uh and at different times in my life i've been more than one than the other sure you know so it's okay wherever you start out but generosity is not a a magical dna factor it's a decision yes that's correct and it just really puts into motion as you said it's a likability factor you just have a spirit about you and who tends to get promoted people that are takers or people that are givers givers i mean in corporate america where there's politics maybe the taker that's true maybe on an hp maybe on hbo for a season yeah the takers can get ahead for a while but it comes back it does it really does and the boomerang effect is bloody it's bad but the the giver is who you know if you're leading two people and you have the perception of wisdom and you actually believe as their leader one of them's a giver one of them's a taker you're going to promote the giver every time because you know they're going to prosper the people under them that are that they're leading the customers that they're serving they're going to prosper them they're all about generosity and that generosity just the way they hold their face is different yes it's everything and it changes everything so yeah it's an act you want to intentionally plug into and um the uh that's the process you know and just it's it's fun and important to point out too for those of you that are right now baby step two gazelle intense you can still give of your time and you can give of your talents in this season mario is with us in new york city hey mario what's up hey dave thanks for taking my call i appreciate it sure how can we help um yeah i'm 46 years old i'll be turning 47 in a couple of months uh and uh my question is this apparently i had a house where we live in right now and uh i had a 30-year mortgage um i ended up paying that off in about 12 years and i paid off the uh the mortgage about a year and a half ago good so um i have about 1.3 sitting in the bank right now in cash i have about 275 000 in the stock market with the uh about 15 to 20 percent correction that we already had and uh i'm in the market and i found this property which is about a full family home will produce about seven thousand dollars a month in rental and it cost uh a 1.2 million and um i was thinking to purchase it all cash uh 1.2 cash and then that would leave me with 90 000 in the savings account for emergency fund and it's kind of uh what's your household income uh 350 000 okay i would want to build your retained earnings up more quickly if you drain yourself down this far on one property because if you have a major event at that property and loss of rent or a repair you could really get yourself in a pinch there that's that's pretty tight but if you're going to write a check and pay cash for it for god's sakes offer them a low ball number try to get a deal on it um you know i'm going to shoot anytime i buy investment property i'm trying to buy it a deal i'm trying to write a check for cash i can close it friday but it's going to have to be a deal otherwise i don't do it and i just i made a lot of money doing that with rental properties so yeah that's where you want to start i would buy it but i want you build that return earnings back up as fast as possible [Music] we were drawn to christian healthcare ministries because we both had young families and we wanted to have more children and we had also just started a real estate company and needed to find healthcare coverage that would meet our needs we were attracted to chm because of its low monthly costs and the ability to negotiate medical costs down established in 1981 and accredited by the better business bureau chm is here to meet the needs of your growing family or small business check us out at chministries.org backslash budget we absolutely believe in it [Music] [Applause] in the lobby of ramsey solutions on the debt free stage phil and mary are with us hey guys how are you good good dave great where do you guys live rockford illinois cool welcome to nashville and how much debt have you paid off paid off 45 thousand dollars in uh 17 months good for you and your range of income during that time uh about 90 to 100. good for you guys cool what kind of debt was the 45 000 uh we had two cars we had a little bit of a student loan and we had some uh house remodeling ah okay cool how long y'all been married 12 years i'll let her answer that [Laughter] well played okay so after 12 years of marriage 18 24 months ago you look up and say something's got to change tell me the story what happened uh kind of a two-parter dave it's okay big day uh kind of a two-parter uh initially we were doing davish we had about a hundred and fifty thousand dollars in debt and uh our youngest was one and our second was on his way and uh i looked at the budget and i said i don't know how we're gonna afford daycare but just miraculously uh my coach football and one of the coaches just happened to mention that uh him and his wife were almost debt-free and i started thinking about like wow you can actually be debt-free you know how does that work and uh i also bartend and uh so one night i got off a shift and i was driving home and i flipped on the radio and i just caught some guy's debt-free scream very powerful uh started tearing up almost like i am right now you know and uh listened and listened and uh i said i think we got to do this and so eventually we signed up for the course and uh you know it's just been pedaled down since we really committed uh 17 months ago so that was dave ish and it was a pretty hard davish but 17 months ago we had a huge hail storm and uh had some damage to our house and so you know we only had 15 000 of that initial debt left we had some margin in our budget started to feel comfortable and with the hail damage we we took advantage we thought oh we can put some money into the house now get a new front door get some new siding and the guy said yeah no problem we have financing and the real kick you know the punch to the gut i got in the mail i got a credit card and i poof i just thought i just thought we're not we're not doing it uh we're not doing it again it's over so 17 months of a sprint you know i've been trying to think of analogies uh listen to the show a lot and listen and heard a lot of people give some good analogies about team work and and what it takes and i thought of it as a sack race where one person couldn't just run um we had to do it as a team and uh so we did that and the last 17 months so we both just ran as fast as [Music] just wide open mary where's that emotion coming from from him you've been in this journey with him he just worked really really hard and sacrificed a lot for our family during this time yeah so a lot a lot of time away from you and the kids uh it's worth it now yeah and that's the emotion yeah and that makes you never go back never ever never never never yeah wow very cool so when somebody asks how you not pay off 45 000 in 17 months what do you tell them the secret is well working together i think you got to have the same goals and you got to be um on pace with each other we have to we had to coordinate um a lot with work schedules and with the kids and i don't think we could have done that if we didn't have the same goals yeah i think you got to be humble and just tell friends i can't afford that and yes to work he has to work yes to work he has to work i heard you say one time dave just draw a line in the sand and if i never borrow money again we'll get there and that was back as a as a fail safe and we just worked from there just kept going from there we're not brought money we're going forward yeah what's up what's the option what's the option what's the option there's got to be another way yeah got to be another two options stink i'm gonna find a third option there you go there you go keep keep looking to one of them doesn't stink yep that's good well done guys very very very well done so if um some guy's driving home from his extra job and happens to turn on the podcast later it's got you on here talking about you driving home from the bartending job and kind of being overwhelmed by that story what do you tell them that the what happens inside of you when you really do reach that point where you really are sick and tired of being sick and tired because dude i watched you physically change right in front of me when you start talking about that i think uh for me i just felt suffocated i just um i felt like i worked more um you know having three different jobs i worked with a lot of different people and i worked a lot more hours than other people and uh didn't we didn't have anything to show for and i didn't i didn't even realize how much debt we had until um we did we looked at the budget and put it down we had 15 different people that we owed money to it was amazing i had no idea that we had owed that much money to that many different people and that is overwhelming that's not a place that i want to be or i want my kids to ever be amen well done who were your biggest cheerleaders outside the two of you uh definitely our in-laws over here they helped out a ton with with child care and were very supportive of me going to work quite a bit and then a friend of mine corey corey whitaker he's debt free as well really helped support me then i got a friend keegan hill who's a who's kind of my accountability buddy i'd tell him every time we ended the debt and he was a good good guy i love that so your football coach yeah when you were having those tough days beyond just the the vision for the future for you and your family how did that coaching come into play when you just didn't think you had any more to give um boy that's that's hard to see i think i was really focused with with football there were definitely things that i would say the younger coaches can tend to um but with the kids and my kids i you know i always trust we're going to take care of what we can take care of we're going to be the toughest guys on the field and that's the way we're going to handle ourselves i love that well done good stuff guys way to go i'm proud of you thank you how does it feel to be free great it's awesome yeah good we got a copy of baby steps millionaires for you that's the next chapter in your story for sure how ordinary people built extraordinary wealth how you can too and a copy of the total money makeover for you to give away and the financial peace university membership for a year and uh you can give that away to somebody or you can go through it it's all the 20 it's all the brand new videos that we just launched the other day all right you brought the kiddos let's bring them up what are their names and ages we have bria who's 7 and nolan who's 5. all right if they've been practicing their debt-free scream yeah all right good stuff i love it well done you guys all right it's bria nolan mary and phil from rockford illinois 45 000 paid off in 17 months making 90 to 100 count it down let's hear a debt free scream three two one [Applause] [Laughter] i love it that is absolutely wonderful man what a what an incredible story very well done yeah you know it's it's really awesome dave to look over there and see a man's man a football coach just totally brought to his knees in gratitude those those two those were tears of gratitude and appreciation uh to make it through this journey and be on the other side of that and just that's pretty cool that's about as that's about as manly of a man you'll ever meet right there and and we need more of that you know that's that's incredible stuff stuff it takes to serve as family and yeah you know make sure stuff gets done yeah very very well done good stuff guys very very well done you only change your life when you finally say i've had it i'm sick and tired of being sick and tired there's no amount of intellectual gymnastics are gonna make you get out of debt you gotta get pissed off i'm done i'm not living like this that's when you change not until this is the ramsey show [Music] [Applause] [Music] ken coleman ramsey personality is my co-host today ramsey personality number one best-selling author well inflation is affecting all of you right now from the gas pump to the grocery store and while you can't control what happens with the economy you can control what happens with your money the only way to control your money in uncertain times is to get on a budget and the best way to budget is with every dollar you'll plan out your monthly budget you track all your expenses throughout the month and every dollar mobile app lets you check in and check your budget from anywhere so you can always make the right money decisions when you get on a budget you will be in total control of your money and really not until start budgeting for free by going to ramseysolutions.com every dollar this is the ramsey show we're glad you're with us america patty is with us in boise idaho hi patty welcome to the ramsay show hi thank you for taking my call sure what's up um i have a dear friend who is recently divorced and i'm trying to help her go through your baby steps i've walked her through them i've tried to explain everything to her but i'm really stumped on advising her in one area and i was hoping you could help me advise her correctly um she because of the divorce she has to refinance her house she has to put it in her name and she has a car that she's upside down on and by your plan it tells me sell the car right but she's five thousand dollars on the car even if she does private sell and she doesn't have any money at all to buy a car so she would have to borrow even a couple thousand to buy another car so i don't know if i should have her roll this into her baby step like just put it on the list of her that she has 8 000 of additional debt besides this car and her house or if i should have her roll it into her house which you know you always say don't do so i feel really uncomfortable telling her that but i'm just not sure how to advise her the best way to go about this i'm glad she's got you in her corner obviously it's all right she got little kids she does she has an 11 year old and a 13 year old and her house is worth 390 000 but to refinance it she has to refinance for 165 000. the requirement was she had to get her ex-husband's name off the loan what does she make so working two jobs with child support and renting a room on her house she's bringing in 43 000 a year she's stretched really thin time wide like she's just really she was really taken by surprise and had no idea about finances she's not going to like my answer but it is the right answer for her okay she cannot afford this house well so i thought about that and like the problem i have with that is i didn't ask about your problem i said she can't afford the house no i know the the market though in for her to even rent like her house came in she makes 45 000 a year and the only way it works is if the roommate pays their rent and her ex who surprised her before pays child support there's a lot of variables here that are going to cause her to get in trouble so do i advise her to sell the house hail the debt off pay all the debt off buy a car for cash and go rent the cheapest thing possible and heal from this process rebuild build a career where she makes more money obviously she's going to do that long term um but this house here's what happens and i've seen this for 30 years and it just breaks my heart but and let me tell you what's going through her mind maybe even yours is these poor children have been through so much already and they're hurting and in order to protect them from even more up evil and more change dad's no longer there there's all this weirdness in their lives for god's sakes we don't want to change school districts and we don't want to make you move out of your bedroom and in the name of that she's trying to hang on to the last vestige of normalcy that she can in a way that is completely unrealistic were she not in this house and was sitting with this pile of money from the equity in the house in the middle of a kitchen table there's no she would no more go buy this house than fly to the moon this is trying to maintain the story that was and the story that's gone okay and it's up i appreciate her mama bear instincts to do that for her baby but it's a it's a short-term fix because what what she's trading for is tremendous financial stress in these kids lives in the coming five years and everything's in order for it to be normal she's going to be so spun up trying to keep everything you're trying to run around keeping different fingers stuck in the dike as the dam continues to leak and it's just gonna get worse and worse and worse and i'm sorry i've just seen it hundreds and hundreds of times and um it took me a little while to realize why people were doing this illogical act but it was in the name of protecting some stream of continuity in the middle of a a a complete up evil where their their their story that was going to be their life is completely changed and it's been a nightmare for her and for the kids and the last thing i want to do is make a move i'm sorry i i wouldn't do that does she then take some of that equity and get herself some sort of like i had her do uh ken coleman's yes yes yes okay there's listen a house is not a home a home is where you make it right and when home is full of financial stress following a divorce it is very difficult to stay on an even keel and even be somewhat classy about the x because you every time you're in a pinch you're just pissed again it's just very hard to go through the healing process when you pile financial stress on top of the mess that's right you're surviving instead of healing yeah you have one track mind survive survive survive it's all adrenaline you can't heal you know and i don't know if i've talked you into it or her into it because she's gonna go look out there and go what about this what about that i think you rent the cheapest thing possible buy you a cash car spend some money on some certifications on a career track and five years from today you're going to be in a much better place than you are trying to hang on by your last fingernail on this one old house and it's just a stupid house it was the home but now it represents the dream that was the broken heart yeah patty hang on the line we're going to give you a copy of my best-selling book from paycheck to purpose she's not ready to read this now uh but when she gets everything settled financially and they get out of there give her this book it's kind of the companion to the get clear assessment it'll help her begin to take steps forward to a much better financial life because of her income and independence so hang on the line we'll give that to you as well take one more step at stab at the persuasion patty because here's what's running through my mind she's got seven years with this eleven-year-old where are they going to be in seven years if they do what i'm talking about and what does the next seven years feel like inside the home is it peaceful joyful hope-filled for the future or is it stressed and freaked out and barely making it all in the name of trying to hold something together that was the past and i think that 11 year old is going to have a much better teenage set of teenage years with a mom who's peaceful stable building her whole new life building a whole new dream getting her certifications moving towards home ownership again in the future doesn't have a debt in the world and is dealing from strength and courage rather than a mom that's hanging on by a thread barely making it hoping the child support comes in and hoping the room may pays man that just doesn't sound like fun to me and uh that's that that's this 11 year old's next seven years where does he need to live what's best for him and what's best for the other one the next eight years nine years whatever ten years from today this lady is going to be in a great life but she's either going to have walk through more hell to get there or she's going to have started from taking a two or three steps back to solid ground to start fresh again and that's what my hope for her is and i'm sorry she's going through this it's just it's just not it's it's not good divorce just it's bad it just messes up everything man it's horrible so sorry so sorry hey thanks for the call that puts us out of the ramsey show in the books austin shelby ben hill zack hendren andrew holmes james and kelly in the booth i am dave ramsey your host we'll be back with you before you know it [Music] dave here you can find all of our shows with the ramsey network app on your smartphone it's the only place to listen to the entire back catalog of episodes download the ramsey network app in your favorite app store today [Music] this is the ramsay show [Music] you can be intentional about your character you can have money and a career you are the hero in your story [Music] live from the headquarters of ramsey solutions it's the ramsey show where debt is dumb cash is king and the paid off home mortgage has taken the place of the bmw as the status symbol of choice we help people build wealth do work that they love and build and create actual real amazing relationships ken coleman ramsey personality number one best-selling author is my co-host today as we answer your questions about your life and your money it's a free call at triple eight eight two five five two two five triple eight eight two five five two two five renee starts off this hour from harrisburg pennsylvania hi renee how are you i'm good dave it's nice to talk to you and ken you too what's up well i'm calling because we're baby steppers and uh so my husband and i are on baby step seven um and we were we were planning to uh get land from my relative he was going to gift us a piece of land next to our current property and he since changed his mind he's not not going to gift us the land any longer he wants to charge us 60 000 for the lot now our only problem is is he's only told us that in 30 30 days ago and we are now we are not prepared for that we don't have the money we don't have the cash and so we're looking because it's family land that's been in the family since the 60s and it's currently next to our current property um and we're concerned that we don't like we would like to build maybe next to us at some point or we're not at least not keep a home from another home from being built and so we wanted to know like should we take out a loan and if so like i don't really want to take out a loan but i don't want to also lose this this family land um and it's now or never he's listing it tomorrow and so we're looking at taking out a heloc on our current home and we we do own our current home you don't have any money no savings we just completed your plan here in january oh so you just paid off the house in january yes and you don't have any money in retirement investing at all we do we have we have we are doing our 15 and it's more because um we obviously reached baby step seven so we're doing i how much is in your emergency thirty percent um twelve thousand okay what's your household income about 70 000. [Music] okay um wow well that's inconsiderate on his part you are kidding must be your husband's side of the family unfortunately it's mine [Laughter] have you tried knocking a noggin on him not going to nod on his noggin we've tried we're offering better deals we've tried offering 50 instead of 60 we've tried everything we could think of would you make us let us know in the world from giving it to you to selling it out from under you cancer so he's had cancer for at least the last 10 years he has lung and leukemia and um he's trying to get it cleaned up for his because the medical the medical bills are expensive always trying to pay medical bills yes and his financial advisor has advised him not to pull from his investments obviously because the market's down to pay those medical bills and he's well off because my my own father passed and so he received the rest of the inheritance from my grandparents oh then your dad's portion didn't pass through to you no that's weird okay huh well i've asked every question i can think of i don't borrow money and i don't like being jerked around into deals that are aren't on my timing so i have a tendency to walk away from this kind of thing but mainly because i'm just so rebellious and sometimes i do it to my own detriment i have regretted it before and um so i'm trying to be a little bit even keel because i'm pretty ticked at your little uncle right now um he's got the money to pay his medical he does not need money to pay his medical bills okay he's got the money to pay his medical bills and his medical bills aren't that much he's got insurance it's not even 60 000 right and he's got plenty of money and if he pulled 10 000 out of his stupid investments it wouldn't kill him in spite of the fact the market's down i wouldn't pull it out because the market's down but i would pull it out before i broke my word to my niece so well the other the other benefit for him is that there's another lot next to it and he's going to be selling it so it will go on the market tomorrow and he will be able to sell that and he can get whatever you know whatever from the from the realest uh it's about three quarters of an acre so it's not huge but there's sewer connection available so let's let's talk about it from two different perspectives then all right number one dave and sharon ramsey don't borrow money and so we would have to just pass hard pass the money all right a place to get the money without borrowing it we'd have to hard pass because i just don't borrow money and once i've gotten my home paid off and i'm baby step seven the chances of me going back in debt i just that would be like throwing up a little bit in my mouth i couldn't do it but that's how we feel no it's so i would just say uh you should have kept your word to me and and i'm sorry you've got cancer but i'm also sorry you don't have integrity and i'll be checking checking that box and moving on uh now having said that if you go get a home equity loan for sixty thousand dollars and you pay it off over the next two years and you're 100 debt free and you've got this lot and you've got a buffer the story still ends excellently um and uh you know you're gonna be just fine you're not gonna keep that debt forever you're not it's not gonna break you you could pay it off and what you could pay it off in two years really couldn't you well we when we did the math we were it was more like four yeah that's not good enough you need to do it in three minutes yeah maximum of three i'd rather i'd rather you i'd rather you do it in two um because this is almost like you know i don't like home equity loans i don't like any of this but it is a singular piece of property it's not a nice lot that you found across town it's a singular piece of property that's family dirt it's next door to you it gives you buffer and so on um but even the other side of that you're still going to have a house right yeah so you're not you know i got 120 000 right no we tried we tried offering uh less but he would not take that either we tried to buy both lots i'm just getting redneck right now i'm going to try to stuff them both but you do whatever you want to do if you do the home equity loan and take them and um pay it off real fast it's not the end of the world financially it's just i there's when deals like this come at me i sometimes do the wrong thing out of abstinence um admittedly and so um i i couldn't do it for multiple reasons just because i don't like being lied to and i don't like being jerked around and i really don't like it when it's freaking relatives so yeah that'd be the end of that this is the ramsey show [Music] so [Music] so [Music] ken coleman ramsey personality is my co-host today is there an area of your life that feels off balance and you're wondering what the right next step should be maybe you have uncertainty about your money or a starting pr or just want to start prioritizing your mental health maybe you want to find purpose in your career or improve the health of your marriage whatever you're facing it's important to do it with a community of people by your side encouraging you along the way and what better way to grow than with a few folks you love doing life with you can level up and experience all of this at smart conference with your friends saturday october 22nd in dallas smart conference is a one day event designed for you you'll hear from world-class speakers all day long your favorite ramsay personalities will be there plus our good friends craig and amy grochelle from life church are coming and the best life changes happen when you have support accountability and you're around a bunch of people excited about being smart check it out start today you can get a four pack of event passes for only 120 dollars that's 30 a person for a whole day of all of some all of america's best speakers i mean teachers this is an incredible incredible event thanks for joining us victoria is with us in pennsylvania hi victoria welcome to the ramsay show hi thank you dave how are you better than i deserve what's up in your world well you see so we just uh discovered you me and my boyfriend probably this week and we're looking to make my emergencies fund and i have a trust fund that probably has i'm gonna say probably about thirty thousand dollars in it uh but the only issue is my mom is the i'm gonna stay like the holder of the account right now she's not really giving me access to it since i became over the age of 21 now i'm 22. she's making it pretty difficult to access that money so we were looking just to get it out so we can start the emergency fund what are the terms what are the terms of the trust so it was originally made for schooling but i've already had my degree and they made me she actually had me pay out of pocket for that whole degree because she didn't want to touch the money so i was probably about five thousand dollars that i spent on schooling um but she won't let me touch any of that you have a copy of the trust um i have the information i've actually been in contact with the trust and they were just like hey she just has to sign this paper and then it goes into your name and she will not do it because she thinks i'm going to be a quote-unquote stupid kid and blow all the money okay the but the terms of the trust say that it's to revert to you controls to revert to you at 21. uh yeah but because i was underage when it was made she just won't find it over no no no stop you're not underage now right the terms of the trust say that the money is to be turned over to you after age 21. correct yep and she just has to she doesn't have to sign anything she doesn't have to sign anything okay get back in touch with the trust company and tell them you're going to contact a lawyer and sue their butts if they don't turn your money over to you okay she's no longer a trustee of a trust that is now defunct because you turned 21. okay i'm not a lawyer but that's if you if you have a lawyer look at this situation that's what they're going to tell you yeah that's going to be the next step we were just trying to figure out if that was the right step or just trying to get her to sign it over would be the best step well i mean for best step would be that she doesn't need to sign it because of the terms of the trust and if you've actually reviewed them uh i would get in touch with the trust company and go uh the terms of the trust are that it's 21 is turned over to me there's no signature required on her part if you don't turn it over to me i'm contacting legal counsel so you need to do this right now yeah just try them and just have them send you the money and that solves the whole thing you call your mom up and tell her what you did yeah she's trying to exercise control over something she no longer has control over what i'm saying yep especially since i moved out she does not have nothing to do with moving out of me has nothing to do with moving out the terms of trust don't state you have to live with her they don't state you whether you live they don't state where you live they state where you're that you're 21 period yeah okay if you go to do something stupid with this money you ought to have your butt kicked yeah i do okay if you go screw this up if you go screw this up you ought to have your butt kicked but that doesn't change the fact that legally you have right to this money yeah based on what you are telling me if you have correct information yeah i should probably just uh go over the trust and specifically what it says and if it just says 21 then they should either write me a check or or we're going to have an attorney contact them and tell them to do that yeah yeah and then you can call mom and say mom i've retained legal counsel because you're illegally holding this you need to sign the paper and turn it over to me now well there you go that's an easier answer said than done well it is and thus is the problem but yeah that's the deal hey thanks for the call i hope that's all that information is right because i don't know your situation but it does sound like you need to you need legal advice once you've gone through the details of the trust if you can't get mom to release it to you and you think the trust says it's to be released to you and based on what you're telling me that's my advice to you so good question thanks for the call okay so here's the rule ken um nothing wrong with doing a trust and it's not unusual to do a trust for a minor until they turn 21 and at 21 is turned over to them and sometimes it's later it's turned over to them the mistake that was made in this situation was they appointed someone to be the trustee who did not have the the intellectual power to do it because mom is trying to function like mother and not trustee and it's going to get mom sued yeah yeah uh so you can't you you can be a mother and you can have motherly opinions and i might even agree with her mother maybe victoria doesn't need this money maybe she's acting out maybe she's immature maybe she's gonna blow it i already told her not to blow it right just like her mom would have told her right but uh but those instincts are different than the actual legality of a trust a trustee is only allowed to do what the trust states correct they're not allowed to insert their own opinion or advice into the situation unless the trust states that yeah in which case you have really opened up a pandora's box of a mess i was curious what you thought about what we heard here now i think it's fair that victoria i don't know that she's read the fine print i don't think she's going to which is great but does it strike you as odd that the trust would say to her well we need a signature from mom you would think or is this a bad assumption on my part that they know what it actually says and they were in fact telling her what isn't what is in fact true i truly have no idea why a trust company would be unless they're just out of an abundance of caution trying to keep mama happy right they don't want mama coming back after him too right she's going to be pissed when this goes down yeah so that's my guess is they're just trying to play politics here rather than legalities which they're going to get their tail on a crack too yeah that's going to be a problem so the problem is when you assign a trustee then the trustee uh you know what there's no trust there is no trust company she's the trustee yeah so something she's she she must have gone to a bank account and a banker told her that that's what i'm wondering like because that struck me as odd yeah what you have to do then victoria is take a copy of the trust into the bank right and show the branch manager look this is what it says and the every minute that you hold this past this you're going to be liable yeah and just that's what i was wondering because the trust is just the document that says here's the deal that manages sometimes there's a trust company but the trust company i mean a trust department a bank can act as a trustee exactly but the mama's the trustee on this no question and she's mad that victoria left the house yeah according to victoria so didn't like the boy yeah but and all of that may be accurate doesn't matter though in this case well it matters is so point being that the takeaway for all of you in america is if you're going to form a trust be careful who you appoint as the trustee it is a tremendous responsibility and they can get themselves into a problem if they start inserting their own opinions into the application of the legality of the trust this is the ramsey show [Music] [Applause] [Music] [Applause] [Music] so [Music] ken coleman ramsey personality number one best-selling author is my co-host today in the lobby of ramsey solutions on the debt-free stage jake and kelsey are with us hey guys how are you doing well doing well good to have you guys where do you live irvine california all the way to nashville all the way across the whole stinking united states way to go guys come in thank you for coming and how much debt did you pay off we paid off 456 000 in six years 300 000 of that was in the last three years wow good for you and your range of income during that six years we started at 175 000 and we ended at 285 000. cool what do y'all do for a living i'm a teacher and he's a physical therapist okay and so wow great incomes so uh what what in the world what kind of debt was this student loans yeah primarily student loans we had one car built in there but it was all pretty much made up of student loans 456 in student loan debt for a teacher and a pt oh it was foolish in the beginning but when we were signing up for things it was just it'll be our problem in the future we'll worry about it later and then obviously it became our problem yeah how long you guys been married 12 years we actually had our anniversary on um saturday oh happy anniversary very good okay so uh halfway through your marriage six years ago that student loan's just still sitting there almost a half a million dollars staring at you and you you wake up in the middle of not in a cold sweat i mean what happened what in the world what changed what changed the direction on this so we grew up in minnesota and then we moved to california for jake's physical therapy school and when he was in school we knew that we wanted to get rid of the debt somehow we just didn't know what the plan was and so while he was in school we were living on the teacher's salary and i had a long commute and i listened to the dave ramsey's show on my commute and so i asked jake if he was interested in trying the program and basically the minute he got out of school we started running and i would say at the beginning we were a little bit dave-ish and then that's when the last three years you saw how we picked up and really worked to pay it off yeah 100 grand a year for three years you were after it i mean you're on beans and rice absolutely jake at one time was working for jobs so he's an inpatient physical therapist so he was working at four different hospitals that became a little too much so he scaled it back but we sacrificed a lot of time i didn't see him a lot i did summer school he worked really hard you know 10 hour days every weekend i would tell people jake works every day and i think they heard jake works a lot it was jake works every day all day yes a lot of days yeah for a lot of days in a row for three years there amazing wow powerful uh guys there's so many times that i have sat with people or talked to people here on the air either one and they have a mountain of student loan debt like this and you guys are incredible uh because that was uh a wee bit daunting to look up and go i got 450 000 on a teacher and a pt's income because neither one of these are six figure incomes usually uh but the way you worked them you turned them into that oh my gosh amazing yeah i gotta ask because just the strain on your relationship just not seeing each other then you're exhausted you're working uh every day as your wife said what kept you going in some of those dark days it was um definitely knowing what the future held and kind of as the one question we figured you'd maybe ask about is one of the keys is sacrifice and um we definitely made the most out of our time um on the weekends a lot of times when i'd come home we knew we knew we'd maybe go to church we'd prepare a meal we'd eat we'd visit with friends for a tiny bit and we'd have maybe one to two hours together so we really learned to cherish those one to two hours and we knew that once we got over with this life was going to be so much better on the other side and a few months out it certainly is yeah have you had a moment to kind of emotionally and financially and relationally exhale a little bit a little bit um has it hit you you know what in a sense it hasn't because i'm still working some um working our way through the steps and i actually jokingly have told kels a couple of times when i go to work on the weekends it almost feels natural like when i'm going to work extra jobs and extra shifts when i stay home it actually it actually feels more abnormal kind of like what are you doing here on the weekend um but it's it's starting to sink in it's starting to feel real that um all the hard work that we did for these years is paying off did you have a sense of release when it was gone definitely we knew the day that it was going to be gone and we had the loan company that we were going to call and do it and we had cookies made with uh with uh getting out of debt and stuff and um and so once we made that call and once it was processed we definitely felt the relief yeah wow okay i'm going to go back to what i said a minute ago the the 450 almost 500 000 is daunting because most a lot of people give up right there it's too overwhelming i can't get there it's hard to it's hard for people to internalize the belief the hope that they can ever get there and you guys did it in six years most of it in three years what do you tell that person who says ah man there's just no way i can't i can't i i kind of see how you guys did it but i can't believe it for myself you know what i'm saying all right they need to definitely believe in themselves and then like we're living walking examples a teacher and a physical therapist and we made it work as we said it talked it really comes down to dedication and hard work and definitely sacrificing and planning yourself i think that you have to have a goal i don't think there was a day that we didn't talk about the debt every single day we talked about it and i think that's sort of been the release now too is you don't have to talk about that but you have to have that goal that you have to find something else to talk about what are you doing home and what am i supposed to say to you exactly but um i think that people just have to figure out you know what you can do that you can work those extra jobs that you can be willing to sacrifice um ours was a longer journey and i think a lot of people sometimes are shorter and so it's just what are you willing to give up you know i mean we drive a 1998 camry so i mean there's things sometimes you have to give up to get to the goal that you want at the end well it's time for you to buy a car now i mean you really do need to get a better car that one sucks oh my gosh it still works yeah i know but yeah you got you got to break loose man you got to be done i don't want you go crazy here but go pay cash for it for sure but oh my gosh i mean you have worked so so hard i'm so proud of y'all y'all are an amazing couple and and uh you kind of look like you got a little ptsd a little bit like you're still trying to little shell shock still from you gutted it out so dramatically i mean there was so many years of saying no and we can't do this we can't do that um now like we you said the release is yeah coming taking a trip to nashville uh going to visit family doing things like that that we said no to a lot over the last several years so um now we get to enjoy these things on a much grander scale do you feel um when you do want to take on something this size do you feel accomplished quite yeah um if we did this we could do anything exactly yeah exactly all along the way um kelsey and i always tell people that once we even got towards the end we could already feel the freedom you talk about the peace and it's indescribable even when we knew we weren't fully done we still felt as you mentioned the release already you've mentioned before it always feels like you're giving yourself raises all along the way and we for the longest time never even had to think much about money because we knew where it was always going to be going and now we just kind of transition that into better ways to save and invest i think we felt the peace along the way too it was um at first it was so daunting to put all those student loans and see them but once they started going like we felt like we had more money even though every month our money went out the door but you just felt that you had that um i think because you're giving every dollar a name and knowing where it's going that's good they had you you felt a sense of control before you were even debt free because you actually were in control good for you yeah hey we got a copy of baby steps millionaires for you that's going to be a cakewalk i hope so yeah really and uh we got a copy of the total money makeover book and a financial peace membership as well you guys are incredible you're heroes i'm so proud of you thank you so much jake and kelsey irvine california 456 000 paid off in six years 300 in the last three years making 175 to 285 count it down let's hear a debt-free scream three two one wow that's pretty fun boys and girls this is the ramsey show [Music] [Music] our scripture of the day colossians 4 2 devote yourselves to prayer being watchful and thankful president john f kennedy said as we express our gratitude we must never forget that the highest appreciation is not to utter words but to live by them amen well done good stuff ken coleman ramsey personality best-selling author is my co-host today marsha's with us in evansville indiana hi marcia welcome to the ramsay show hello thank you for taking my call i have been listening to you since april 5th of 1995 and i finally got a question i just need your opinion on okay uh should i buy a piece of farm equipment so i can section 179 expenses for next april's income tax no now let's talk about why uh the way you stated all of that the only reason you're doing this is for income tax yes okay no and uh 179 it means you just get the only thing about 179 is you get to write the whole thing off in one year you don't have to put it on a depreciation schedule correct okay so how expensive a piece of farm equipment between 80 and 120 okay let's call it 100 for round numbers okay yes sir are you in a what a 30 tax bracket 35 tax record no no actually i'm in the 21 next year uh it'd be a 25 but this year it's a 21. okay so you're gonna write a check for a hundred thousand dollars for a piece of equipment you don't need and the actual the actual mathematical benefit needed i'm sorry i wouldn't say i didn't need it yeah i could do without it but i would use it yeah well i'm sure i mean if you bought a new airplane you'd use that too but um but that's not the point the um so that you can you can 179 that as well if you're using it for business but the um uh the point being this okay the hundred thousand dollars leaves your checking account and then you take a 100 000 tax deduction is your income in a in excess of 100 000 a year uh 98 is what i expect for this year depending on the grain market okay so you would pay zero taxes on the 98 000 and it would have been around 20 actually around 15 probably because it's a graduated tax income tax it's not all the final bracket but so let's say your tax bill on the 98 000 would be 15 000 yes i yes exactly and then if you didn't pay if you didn't have this write-off you pay 15 dollars so you're trading one hundred thousand for fifteen can i ask you one other thing then did it make sense to you yeah absolutely uh we did not take any crop last year until january of this year so i already i already know from my tax lady i will be spending fifteen thousand dollars in taxes for the 2021 crop okay and so if i were to buy this piece of equipment and 179 i'd save 30 000 okay but you're spending 100 to save 30. true yes i agree i mean if you want trade dollars for quarters i got a deal for you well it's like what else do i do with the money my stock i'll do that deal with you how much do you want to do i'll do 500 000 with you if you want to do dollars for quarters walk away slowly marcia [Laughter] so here's the thing what's the piece of equipment uh it would be a used backhoe or a dirt mover okay all right so here's the only reason you buy equipment in business the only reason it makes you more than it costs you yes i agree when i buy computers for this place i can 179 them when i buy cameras for this place i can 179 them and i spend a lot of money on that kind of thing every year around here so i when i furnish offices i can 179 up to a certain limit okay but i don't buy any of those things for the 179 tax write-off benefit i take the 179 tax write-off but i only buy them if i can make more money because of them than they cost and you're not going to increase the quality or the your income on this farm by as much as this equipment costs i agree so you're not roi and you're not getting a return on investment on the equipment and you're only buying this for a tax write-off which is trading dollars for quarters and you don't do that and i question whether you ever take a piece of financial advice from your idiot tax person again this is horrible advice well it was my idea and they they agreed with me okay well uh then i i won't be quite so harsh since i have you on the phone but oh my goodness oh my goodness darling no we don't want trade dollars for quarters people do this all the time in business and call it smart and it's it's because they're usually because their tax accountant is only looking at the tax benefit of it not at the actual economic transit transaction and the economic transaction is you're handing somebody a hundred thousand bucks and all you're getting for it is 30. that's not a good trade it's not a good trade i hate taxes more than you do but i ain't trading the dollar for a quarter just for that now i'm gonna take the 179 write-off every single time on items i purchased because they were going to make me more than they cost me anyway that's correct and that and i believe me i max my 179 out every year and trump's tax law really helped those of us in small businesses one of the few things that small business come along a long time that 179 being maxed out like like entire floors of stuff we could write off around here instead of writing it off over three years or five years we wrote it all off in one year so the small business person is the fear is the answer to that fear oh i'm going to get a tax bill is it retained earnings just juice that a little bit yeah you got to set your money aside for taxes right so then you don't need to be so worried about it yeah so it doesn't bite you but you just you just get sick of giving the government money because they're stupid trust me i don't like giving stupid people money i get that and i'm looking to see the size of the money they take from me so that i am a law abiding citizen yeah and uh otherwise i'm not a law abiding citizen oh my gosh you know and but it's just thievery in the name of government yeah and so i don't i don't disagree with her in that sense i god man it pisses me i don't want to do it it just makes me i stay mad around tax time but i'm also not going to trade dollars for quarters in the name of keeping money out of their hand that that's just cutting off your nose despite your face kathy's with us in canada hi kathy how are you hi gentlemen thanks for talking to me today sure right quick before we run out of time what's your question yes um okay i'll make a quick i'm newly single i have three children 43 years old starting from scratch i'm getting 150 000 settlement from my ex any day and i'm wondering just pay off debt and and start from scratch or or invest it and try and build it i'm just scared i'm starting over how much time over again i have a 28 000 car and 40 000 line of credit plus my house 68 plus your house what do you owe on the house yes i owe 180 it's worth 240. what are you going to be doing for a living i'm a correctional officer for the federal government up here pay your bills on that oh yes okay i grow some about 1 30 and i met about 80. so i'm okay i just wanted child support as well or just this one cash in your no no yeah we're 50 50. so none of that i'm really nervous i'm sorry okay you're fine you're doing good and you're helping me you're helping me meet the clock for a run out of time here so here we go there we go i would pay off the debts and start fresh and make sure you're living on a tight budget so you don't get yourself uh messed up on your new income being less than it was when it was combined okay okay be very careful to live on the 130. yeah i've been binging your books i've been i've been budgeting like crazy so i feel like i just want to start this off on a fresh foot and not make big mistakes so whatever i might have one of the things i did when i started fresh after going broke in my case in your case it's a it's a divorce but the um one of the things i did is i went back to the old debts and i said okay what was going on inside of my heart that allowed me to do that i want to make sure that's healed so how did those debt where do those debts come from and make sure that part's healed so they never grow back after you get rid of them that's a good thing to look into and go well it was all him he was stupid okay then that's fine we got rid of him so we're okay it's one way of healing from it ken good show today thank you sir austin ben zach andrew james and kelly in the booth i am dave ramsey your host will be back with you before you know it in the meantime remember there's ultimately only one way to financial peace and that's to walk daily with the prince of peace christ jesus hey folks ken coleman here did you know the ramsay show is one of the most popular podcasts in the world it's your daily dose of advice on life and money check out all of our shows from the ramsey network wherever you listen to podcasts [Music] you

Channel: The Ramsey Show

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Id: MbGnfpMXLvE

Length: 123min 0sec (7380 seconds)

Published: Mon Jun 27 2022