Your Money Habits Start With The Person In The Mirror

[Music] 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 george campbell ramsey personality is my co-host today he is the host of the very popular ramsey network podcast called the fine print where we teach you to read the fine print because you know the rule there is if you don't you get screwed and uh george shows you all that uh episode or season one is in the books working on episode of season two coming out soon uh before you know it and um man we got some there's a lot of people out there that uh need information so george is here to help today we're gonna be talking about your relationships your mental health your job your career and of course your money open phones at triple eight eight two five five two two five the call is free and some say the advice is worth exactly what you pay for it gary's with us in san diego to start off this hour hi gary welcome to the ramsay show hi dave hi george great to talk to you thanks for taking my call sure man what's up i've got a two-part question the first is about incorporating um syncing funds into the every dollar app for for budget when you do a sinking fund versus just having a fluctuating budget and the second is about market stability so i'm baby step 7 edm make way more than i spend monthly and my wife and i have been using every dollar unconsistently but we're really focused now and there's things like car insurance things like that property taxes that are several thousand dollars that i'm wondering do you do you set those aside monthly in your budget or if you have the money do you just do it every six months or every year so that's the first part of my question and then secondly i know you're friends with um glenn beck and he's talking a lot about this great reset and everything i'm wondering if you have any concerns over the market and alternate strategies like he does do you have crazy friends [Laughter] i've got a few crazy friends glenn's one of them i love glenn and he's completely out on a plank i mean he he does this every two or three years he predicts the end of the world and um i made a rule when i went on radio i'm not going to predict the end of the world and if glenn's going to predict the end of the world he and i are going to be friends that disagree so no i don't think that the world is coming to an end um uh you know if it does then it will but i'm not going to i'm not adjusting my investments and i never have in any of the crisises and the geopolitical upheaval that there's been i've always just kept investing and kept investing and cap investing and those the only ones that get hurt on a roller coaster are those that jump off in the middle of the ride so george what about sinking funds well i was just going to mention on that part on top of not getting hurt on the ride you also kept your sanity and that's an important part of this equation you're suggesting maybe glenn didn't no i'm kidding we love glenn i'm k we joke all the time he is a great guy he's a wonderful person i mean i really like him uh but he just he gets crazy sometimes man and this end of the world prediction stuff is one of those times so i sleep better at night yeah he went off on the gold run a few years ago getting everybody onto gold and of course you know i don't do that so i got a lot of friends that i really love them and respect their intellect but disagree with their ideas and so that's all this is sinking funds let's talk about that i'll tell you how i do it my personal every dollar budget and dave can tell me i've been doing it wrong all these years but i have a i have a whole category called funds that's wrong i just list them all out and i divide it by 12. so i pay all my insurance premiums yearly because it saves money and so if it's 600 bucks i go all right we got to put 50 bucks in that syncing fund category every month and that's going to get set aside in my account so that when that time comes the money comes out and i didn't bat an eyelash here's the the sinking funnel on miniature savings accounts to cover christmas because it comes every year in december they don't move it so you got to get ready right it's the old christmas club account it's just built into your budget as well now gary i do want to that's exactly how i would do it 99 of the time i want to acknowledge though that you said you're an everyday millionaire you have a huge income you're completely debt-free on baby step seven so you've got substantial cash flow what's your household income so it's different this year so i'm retired and my take home retirement guaranteed income gross is 15 000 a month and i have a uh okay so if you have a if you have a four thousand dollar item that pops up once a year you just put it in your budget right so yeah you don't have to save up do i need you don't have to save up for christmas making fifteen thousand dollars a month you can just go freaking by christmas right got it yeah that's what i was doing yeah you put that in the budget that's what you do when you get to this level now the the purpose of having the sinking fund is not to nerd out on every detail it's to not have an expense sneak up on you that leaves you without food money that month because you got oh my god i gotta pay my property taxes i have no money and i haven't saved up any to get ready and they're due you know but in my case you know we're obviously baby steps seven people too and so i don't have a sinking fund for my property taxes i just write a check when it comes up because i can fit it into my income like you can gary and so you don't have to do the sinking fund but if you've got something that's big enough that you experience an algae you know it's like ah when that when that hits in your monthly budget then you probably should have saved up some to get ready for it with a little miniature named savings account we call them sinking funds and it helps to know when those are coming up because sometimes you're like i don't know when my premium comes out every year so it's good to have that and have the dates but like you're saying you've got a buffer in the checking account when you get to a place like baby step 7 until you're out there like that i mean when you're in baby steps one through six and all and you're still fighting to pay off the house you're you're still you're not running with big lumps of cash laying around i mean you're running it all those cow all those dollars have names and they're going everywhere you need to use syncing funds in that case always and the classic one is oh i had to run christmas on a credit card because i forgot it was in december you know it snuck up on me like they move it they don't move it so that's that's what that's about but um but man you've obviously done a wonderful job congratulations gary very well done michelle's in seattle hi michelle welcome to the ramsey show hi there thank you so much for taking my call it's an honor to speak with you you too what's up well we we are going to retire in the next seven ish years my husband's a firefighter so we have a pension we're very lucky and we just had the opportunity to sell our house for about 1.1 which is crazy pants in this area we only know about 500 so we're kind of thinking that we should take this opportunity right now and even if we need to rent for the next five to seven years then at least we can pay off all of our debt which is about a hundred and twenty thousand dollars okay sure household yell at me about 175 000 and we feel like we have no money it's really sad yeah well you get on tight budget and get your debt paid off no i wouldn't sell your house i mean you it's a 1.1 million house is not a super expensive house in seattle i mean it's a nice it's a nice house but it's not a 10 million dollar house it's not a hard house to sell you'll be able to sell that house in seven years when you get ready to sell it and you will have lost out on all the appreciation between now and then [Music] i think you can pay off your debt with the income you have yeah you can stay the course get on your titan budget here and beans and rice and let's get this stinking bud you may need to sell your car but i wouldn't sell my house unless you hate your house and want to move anyway now if you want to do that that's fine but selling it because the market's hot i you know i wouldn't do that unless you've got a very unusual property and you know you're needing to walk out of it and this is a great time to do that but this this is not 1.1 million in seattle is not like crazy you can get that that's not i think you need tighten up your budget sell your car maybe this is the ramsey show [Music] life is full of firsts [Music] as the first and longest serving christian health cost sharing ministry chm has shared medical expenses for its members since 1981. we believe you should have the freedom to focus on your health while being supported by a community of believers giving you the opportunity to create many more verse [Music] well we all know time is important it's actually more precious than money it's more precious than shiny toys or getting a certificate at work and like spending money from an account when you don't know how much is in there we never know how much time we have left so if you could do one thing that would make the time you have left worthwhile would you do it well of course you would you got to make that dash between the two numbers on the gravestone count right hey we get that and we want to help you do everything you can to be well that's why we're partnering with betterhelp and we're going to give you a month of free one-on-one weekly therapy when you pre-order a copy of john delony's new book dr john dolone's new book is own your past change your future and your free month of one-on-one therapy is a part of pre-ordering the book the book comes out in april and we always have a bag of goodies that go with a book launch to get you to order them pre-order and we bribe you to pre-order them because it helps with our marketing and this is the biggest bribe we've ever done it's pretty incredible it's a great deal for a 20 book you get better help for a month included wow and of course you get the ebook in the audio book too in the audiobook the first chapter is out on delony's podcast i listened to it yesterday yeah they released that for free as voiced by the author and he didn't do a bad job he's got a good voice he's got a he's got a passable voice yeah yeah it's usually kind of a batman vibe well he's always had a batman vibe but yeah the voice worked out and it's you can listen to it some audio books read by the author shouldn't be yeah are you you're looking at me like it was a personal attack no i'm not i'm just having a conversation with you george my gosh you're so sensitive i like to listen to your audiobooks while we're so yeah thank you george and i'm highlighting everything and you and you and you yeah you you and you do everything exactly right get a gold star including brown nosing so uh yeah ramsay solutions.com own your past change your future mike's in buffalo hey mike welcome to the ramsay show hi dave thank you so much for taking my calling greatly appreciate it sure man what's up um well i'll try to make this as as as quick as possible um big fan of yours um i uh i wish my life looked like i was a big fan of source um basically the nuts and bolts of it right now is that we've got a uh a credit card judgment against us the original debt was about fifteen thousand they're coming after us for about twenty thousand um after fees and interests this is from discover and i'm trying to figure out what to do they're trying to well they're mistakenly saying that i'm earning about four times what i actually earn in order to try to take 10 of my income um we've got a friend who's an attorney who's trying to help us sort through that and you know stave that off but that's kind of a band-aid we just recently got our tax return which is about five thousand dollars and um you know we're trying to figure out what's the best thing to do with that given our current situation okay what's your household income um well my um my wife brings in um i forget exactly it's around 50 000 annually i'm currently the stay-at-home dad um i do work a couple of part-time jobs that don't make a ton that's just basically you know to help with essentials and bills and how do you know things here and there i've got three uh one is eight one's five and one's three how did you get this far behind oh boy so a while back with that particular card um we had runs and things up on it like our honeymoon um paid it off with a a refinance on our house how long have you been married was uh close to ten years now okay we don't need to go all the way back to the honeymoon how'd you get behind on your discover card in recent history okay well i mean it wasn't recent it was several years ago now okay okay that's fine all right here's what that's that's what i was trying to do that's the number i was trying to get so we're good okay all right so here's the deal um number one the discover card problem is not the problem it's the symptom of the fact that your income is low in this house you're gonna have to make some different decisions on careers term yes i'm trying to figure out how to do that yeah you're going to have to you don't have to it's time it's past time to figure it out and this is a great time to be looking for a job and a great time to be getting a job both of you maybe your wife gets a better job maybe you get a job i don't know but we're gonna have to do something here because you've got three little kids and you're living uh considerably below the average household income in america in buffalo which is not a cheap place to live so i mean we did get lucky on our house we live outside of buffalo don't try to talk yourself out of this dude you have an income problem no no yeah okay i don't care how lucky you got it you didn't get lucky enough to pay your bills so right and part of it is you got three mouths to feed you don't have a lot of money coming in so we've got to get that going we've got to get organized and get on a budget we'll help you do all of that as well um now as far as dealing with discover here's the thing are you sure you're dealing with discover how you're probably not they probably sold that debt haven't they uh i think so we were getting calls from some ah okay the agency that's what i thought a debt that hasn't been paid on in this long and they actually did sue you and actually did get a judgment you're saying that's that's what it looks like yeah unless they're sending us just flat out and false you know information uh but it looks like it's stamped by our local county sheriff's office okay probably is and i doubt they i doubt they'd go that far so debt buyers on old credit card debt pay about a nickel on the dollar okay and so they probably paid a thousand dollars for this twenty thousand dollar debt so i would offer them five thousand dollars as settlement in full in cash i don't have any more than that i'm broke i have three kids we don't make any money over here this is my tax return and i will give it to you but i will only give it to you there's other people wanting this money i'm behind with everybody i'm getting ready to go bankrupt a few people if i can't work this out and i'm and you know and just really whine and play a bad country song in the radio right there in their ear about how bad your life is and because it is and i got five thousand dollars and you guys better take that while the getting is good and you get it in writing from them that this is settlement in full and then you wire them the money no electronic access to your checking account do not give them any numbers of any kind do not give them where she works don't give them any information make them find everything the hard way but they'll settle this because they probably got a grand in the debt and they'll probably take the five and walk they're not going to in one conversation you're going to bow up and be have a little gravitas all right but you can do that two rules in writing no electronic access to your checking account okay right now that solves the immediate fire in the kitchen but now we've got to figure out what why we've been cooking with grease like this and what's causing this right so yeah and you got to get down under this and fix the whole thing because you guys have been wallowing around in financial stress and it's affecting how you feel about yourself it's affecting your relationship and your marriage unless you're not a human unless you're psychotic it's affecting all of those things it did when i went broke sure and i about killed each other yeah mike do you have any other debt other than the credit card uh yeah i mean we both have student loans we have a mortgage we have um one other card that's in collections for a much smaller amount um it's closer to like five or six thousand um but uh they you know they haven't mentioned anything for us on that um and then we have a car loan that's around i think there's something like seven or eight thousand left on it okay well we're gonna get we're gonna put you into financial peace university and sign you guys up you and your wife need to go through this together if you can find a local church that's doing it jump in there if not just do it online with us and get in some of the groups embrace every detail of that and assume like i did when i went broke when i was 28 many years ago assume that everything you're doing right now is wrong and you should be doing the opposite because your life sucks man but i don't want it i want you to win the last 10 years yeah i want you to win and you've got to turn this around yeah so you hang on we'll get you signed up and and you call me back if you need some more help george and i'll be here we're going to be here for you we're going to walk with you because it's scary as crud where you live right now and i don't i don't want you to be there anymore i remember it it's not fun and you can get there you can win you can turn this around check out a local church and get plugged in get your marriage going make sure you're getting your bills paid get this settled and get it out of your life you can turn this around we can show you how [Music] [Music] if you're not using puretalk for your wireless you're paying too much puretalk gives you the same great 5g coverage on the same 5g network as one of the big guys for half the cost the average family saves over 800 a year go to puretalk.com and choose the affordable plan that's right for you with their 30-day risk-free guarantee you have nothing to lose go to puretalk.com and enter the promo code ramsey to save 50 off your first month [Music] george campbell ramsey personality is my co-host today i am dave ramsey your host this is the ramsay show brian and jamie are with us in san bernardino california it says on my screen you guys are debt free congratulations thank you thank you for having us cool how much debt did you pay off we paid off 325 000 in uh 29 months wow and your range of income during that time uh we started out at about 225 000 and uh last year brian doubled his income so that's what you broke up brian double his income and what brian we started about 225 000 and then last year brian did really well he's in so he did really well and doubled his income last year which helped us pay off the debt so i'm sorry your household income last year was to what then did it went from 225 to 450 yes okay all right so brian is the only income i'm getting it okay that's what i was trying to figure out good way to go guys what in the world do you do for a living dude i'm in sales actually jamie jamie's uh in the medical industry so she also has a um a career her occupational um is in medicals oh okay okay so so it was your household income 450 did i get that right yeah so what kind of debt was the 325 so we had um we had two cars that we had to pay off we had a truck my car and then we also had an rv and then our house has paid off as well we just paid that off this morning talking to weird people so what's what is this california house worth what's the house worth so right now um maybe 800 to 850. okay wow very good how old are you two uh we're both 40. way to go and how much to get do you have in your nest egg in savings so we did that's where we we did do financial peace university and we had savings uh in order to pay off the house i wanted it paid off today since we were calling you so we did pull money out of savings to pay that off this morning how much do you have in your 401ks and your retirement and that kind of stuff oh all of that together uh maybe four hundred thousand so you're 40 year old millionaires where'd it go did you guys just figure that out please tell me there's another fifty thousand dollar house four hundred thousand that's a million two net worth way to go when you say it that way yeah it's well that's the way it's said well done way to go you guys amazing and you make incredible money you're doing so well congratulations okay what started you on this whole that's a huge lifesaver for us okay what started you on this whole ramsey journey thing so dave i i've listened to you for god 10 years over the over the radio but um i've always told jamie hey we should we should look into this you know it'd be fun to kind of hear how to invest as millionaires going forward and getting that lifelong goal so um this came up with our church and i said you know we should do it she was hesitant at first and i said it's i think it was sixty dollars when we did it um and anyways we ended up doing that and um she i kind of drug her through it and the first day that she was in there she was like why are we doing this we're not in debt and oh i was so mad i said we have no credit cards we don't have any debt all we have is our house and our cars and the financial piece totally changed our mindset and then you start looking at your bills seeing how much you pay in interest it was shocking jamie i'm confused you got two car loans and you didn't see that as debt even though the payments were going to lenders every month talk to me about the mindset a lot of people say that they call and say dave i don't have any debt except for my cars yeah that's that's what we said yeah the way to go you guys so how many classes in the financial peace university jamie before you flipped and said okay i'm not mad anymore oh it was probably the third class because the first class i still said why are we doing this this is such a waste of our time yeah and it wasn't until they made us write down our debt start a budget when you really start looking at numbers the reality hits you and you go oh my gosh he's right we're broke yeah yeah yeah when you write down that you have 140 000 in debt it's it's it's shocking and 29 months later house and everything is paid for yes way to go how's that feel oh we're in shock still we recorded uh us making that last payment this morning i love it that's awesome i love it well congratulations we're very proud of you guys what do you tell people the secret to getting out of debt in 29 months is what do we tell them you said oh you got to take financial peace you have to do that snowball effect ah okay cool and also be on a budget you know i don't think we realized how much money was going out the door on a monthly basis versus what we were bringing in and we were living you know as we considered comfortably but um the mindset that that class gave us to change our our viewpoints and just roll it down has now put us in an extremely good position going forward yeah wow pretty amazing way to go guys i love it so proud of you you're incredible very well done all right we're going to send you a copy of baby steps millionaires because you are one uh maybe you can pass that on after you read it and inspire someone else to do what you've done i'm so proud of you how ordinary people built extraordinary wealth how you can too it's the number one best seller we're also sending you the number one bestseller total money makeover so you give that away and disturb someone's life let's create a holy ruckus together well done you guys i'm proud of you very very cool well done all right brian and jamie san bernardino 325 000 paid off in 29 months making two and a quarter to over 400 100 debt free house and everything baby steps millionaires by the time they're 40. count it down let's hear a debt-free scream one two three [Applause] i love it well done well done absolutely incredible very cool you guys very cool that is how it's done man three lessons in that just for everyone to know if you're taking fpu the first sometimes i hear the first lesson turns turns them around but she was hardcore you got a bad attitude it might take it two or three she's hardcore i mean she had the arms folded you know and the old body language just says i'm pissed and i don't want to be here right and you start to let the hair down the arms start to spread out yeah we can do this wait a minute wait a minute we can do this i love it that's so good what a great story very very well done you guys michelle is with us in miami florida hi michelle welcome to the ramsay show hi dave um well thanks to everything that you've taught i am now on baby step four i have a fully funded emergency fund and i'm saving 22 percent towards retirement and my house is paid off yay wow like george said to that last couple i mounted that except for my car [Music] don't beat me up for that but um the lease term is up in december and my payoff amount is 22 000 um i just learned that the kelly blue book trade-in value is 27 000. so i'd like to know should i pay off this card into the lease term or should i just cut my losses and go find another car i'm sorry i thought you said you could buy it for 22 and the value is 27. yes that would not be cutting your losses that would be gaining just like it you'd have to spend 27 or you can pay this one off for 22. is that right that's right therefore you're getting a 5 000 discount which is unheard of in this market in that in that sense so do you have the money to to buy it well i'd have to eat into my emergency fund well we're going to do that what's your household income okay i make 41 000. oh no i would uh i i i i would buy the car and turn around sell it and get something cheaper make you make you a five thousand dollar profit and uh then get something that's less expensive making 40 thousand you don't need to be driving a thirty thousand dollar car a lot of cars for that too much too much from things going down in value i know they're not going down in value at this moment but they will be soon again it's used cars and they always go down in value so no no i i would i would make the five grand on it though and flip it and then move into another car at that point and they never touched that again yes ever under any circumstances this is the ramsey show [Music] [Music] george campbell ramsey personality is my co-host today thank you for joining us america open phones at aaa 825-5225 adam is with us in toronto hey adam welcome to the ramsey show hey how you doing dave good man what's up well nothing uh well i shouldn't say nothing quite a bit but just a little bit of a recap back in 2016 my wife and i did as you say stupidly zeros on the end of it uh spent a lot and 2017 paid off about 65 000 bucks of debt in 11 months and i never did end up getting down for a debt-free screen but anyway um fast forward now in the last i guess a couple years colbot has kind of destroyed my industry that i'm a pilot and in canada here it really took a bad hit it's just kind of recovering now and so with the stress that that kind of brought about which brought some marriage issues along with it and uh life is in a really uh bad spot right now i guess we both kind of are and um is not sure if she wants to work on the marriage or what she wants to do and we're kind of in this stalemate but in the resulting kind of aftermath is that she's decided that she's going to spend however she wants to spend and kind of uh go back to you know she's saying we make too much money there's no way i should have to have any restraint and so uh kind of spending about well i'd say about two thousand dollars a month over what we make and as a result of kind of depleted our emergency fund almost down to nothing she signed up for an elective surgery to the tune of about ten thousand dollars and one kind of questions on the timing of it she just said well i'm either either we fund it somehow through us or i'm just gonna look at my whole credit card do it myself and uh and so but every time i bring up finances to her to uh to talk about it she says you're obsessed with money you've got to stop being so obsessed i'm trying to just bring her to the reality that we're spending more than we make and we're kind of gradually bankrupting the family you know we've got four young children and uh trying to you know put money aside for them as well and and retirement now that we're kind of both kind of getting back on our feet we do make good money but uh the reality is we're just spending way too much and she has no desire to even talk about it she'll still involve me every time i try to bring it up and i'm worried that i'm going to tip her over the edge in the marriage if i talk too much about finances but if i you're my marriage well yeah that's the thing if i i feel like i'm kind of giving the drunk a drink you didn't hear me you don't hear me your your marriage is already gone yeah well i mean she she doesn't give indications that she doesn't want to make it worse no she does that no she does not ready no no no she doesn't people that do the things that say the things that she's doing have no desire for this marriage to continue yeah when you say things like if you don't go if you don't uh pay for this ten thousand dollar i'm just gonna put it on a credit card screw you you don't have a vote this is not a marriage this is not someone that has a marriage anymore that wants to work at all and so what i would do if i were in your shoes is the two you would say i'm going to go see a marriage counselor and it's either going to be with you on how we learn to get back on the same page and we have a future together that's going to include us both being grown-ups um and if you want to go with that that's fine if not the marriage counselor is going to instruct me on how to bring this marriage to an end yeah we have done some counseling and just work a couple times and just trying to get her to come back to it is the hard part and she's very reluctant yeah you're begging her to do stuff then she you know and she has no desire she's obstinate she's angry and she's done she's done the marriage is over i mean it's tough to say that because she does see that she still does she wants she's lying what she says is not what she's doing and so that's the problem yeah and again people that want their marriage to work do not behave the way that she is behaving yes i would agree okay so yes elective surgery for ten thousand dollars when you're broke and the family's in financial stress that's so selfish and asinine i can't even put words to it yeah i know that's that's kind of my thought too it just is it's a fact it's not an opinion it's that that is her screaming in your face that she's done yeah yeah i know i don't really like to think of it that way obviously because it's not a nice outcome for anybody and this is this mess and i think i'm not sure you did it i think you're just the one that's going to admit it yeah now i would agree with you going back a couple months that she was done and however she's had some influential people in her life in the last month or two that have helped bring her around her attitude has changed well then that would involve you guys getting in a good getting with a good marriage counselor immediately yes but then she needs to turn into action yes and she has admitted that that is an option i i did confront her about it about a couple weeks ago and she has i said this is what i want to do i had some referrals for her focus on the family and she said yes that is an option and so i'm just kind of trying to not push her because she doesn't know i am going to pressure it's time to push her it's time to push you the house is on fire it's burning down around you get out of the house push somebody yeah i am i definitely am i'm bringing stuff up fairly regularly but you know kind of teetering on the edge of not wanting to push her over one side to get her her emotional side to engage i want to honey what you think is being nice is not nice you think you're you think you can beg and be sweet and cause this to happen and it's i'm not asking you to be mean to her but you're acting like that you can beg her into wanting to do this she has to stand up square her shoulders and say i'm going to re-engage in this marriage and re-engage as two adults on how to run our household and she has to do that under the heading of a therapist and the two of you learn to work together again you cannot beg her to behave yes i agree with that totally it's you know i i can't change her she has to decide to do it it's a matter of you know we're trying to get you know obviously lots of prayer and other friends of influence you have to get around her i absolutely change your heart what and she needs to be going and if she's not going then we need to know what that we need to admit what that says yeah okay but all this there is not a financial technique that's a problem here the financial problems in the financial spending are all about her obstinance and you trying to talk talk your way around it to where it's all somehow okay it's not okay it's not okay it doesn't work that way and so if uh whitney uh decided to start just start telling george what she was gonna do george would have a thing have a thing where you know here's what we're gonna do i don't tell sharon what to do and tell me what to do we sit down we talk about like two adults we devise a plan on how we're gonna do the calendar how we're gonna do the budget how we're gonna live our life we work together towards common goals this is called a quality relationship in your marriage uh but when people start throwing around they're just like i'm gonna do whatever i want to do and they get the all head bobbin thing going and you shouldn't have got married then it's you know you you've got a mess on your hands and you've got to go back and try to try to learn how to be married and it that takes both people and you can't beg someone to behave you cannot control someone else's behavior your behavior is the only thing you can control and you put in a situation to go if you do this then you're choosing to opt out if you do this you're choosing to opt in but i can't make you choose that's the only thing you can do is present options to her but this idea of i'm gonna let her be go run our family and bankrupt us so that by being nice and letting her do stupid butt stuff that's going to ruin our family then that and causes her to go to counseling that's that's a that's a false narrative that doesn't work that's if the auspices for her going to counseling is so that is because she got bribed by you you're putting up with a bunch of crap then that no that is not how you start rebuilding this thing so now you guys need you desperately both of you need to sit in the counseling counselor's room immediately or you're not going to make it and the spending stuff is just i'm not we're not going i'm not going along with it and if you don't like it i'm just part of what we can talk to the counselor about or it's part of what we can talk to the divorce judge about one of the two it's one of the two but i'm not going along with this because it's not right and i'm not suggesting you leave today i'm suggesting that the two of you get into the counselor's office four years ago but right now for sure it's the only best option best time to plant an oak tree 10 years ago next best time is today oh yeah that's a great quote she sees him as basically a doormat at this point because she knows well i'm just going to do what i want he's not going to tell me off yeah he's not going to have the conflict you have to stop being scared that you're going to cause the marriage to end by pushing by pushing the marriage to succeed that's that that's that is not going to work it's not going to work you're going to end up nowhere but bankruptcy court and divorce court at the same time oh man sorry so sorry what a horrible thing you're going through i sure hope she comes around i hope the two of you get in counseling and i hope it saves your marriage but you know you participating in crazy is not going to make crazy go away this is the ramsey show [Music] hey it's john deloni co-host of the ramsay show did you know over 18 million people listen to the ramsay show every week a lot of those people listen on one of our 600 plus radio stations across the country to find a station near you go to ramseysolutions.com [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 i'm dave ramsey your host thank you for joining us america it's a free call at triple eight eight two five five two two five george campbell ramsey personality is my co-host today as we answer your questions about your relationships about your money about your career your job about mental health whatever it is you want to talk about we're here to help you the phone number is triple eight eight two five two john is with us john's in chicago to start off this hour hi john how are you hello dave thank you for all that you do let me say that first well thank you sir how can we help i don't i can't think of a single program that affects people's lives so positively okay my wife and i are business owners and we work together and have for over 20 plus years let me uh paint the scenario you ask the questions you feel you need to know okay we purchased about three acres of property uh that the intent for this uh acreage in the in the end is that uh we parked campers and and uh rv vehicles this is my retirement job i'm never gonna retire i know that she knows that but i have to have a plan for something i can physically do when i get to be much older so that's my physical toleration limit i felt having said that we bought the land uh we bought it at about 4.2 percent and we also rent garage space on another property now we're always going we're always going to build a steel building on the land that we own and move the business over there to avoid that rent but here's the question that i'm not sure if i build the steel building it's going to cost me let's just say a hundred thousand dollars and i'm going to build that steel building with cash or do i take that hundred thousand dollars and pay off the loan for the land and then save up enough again to pay cash for the building but then the whole time i'm renting the other one so it's like this uh not sure what really the best thing to do is question what's your income that's kind of where i'm at uh our business grosses now i know that's not your question but if you don't understand what business it is we're going to personally net about 250 000 a year okay all right all right well it sounds like you sounds like you could build a building fairly quickly if you paid off the land if i pay if we paid off the land i think we could build the building in another two years so maybe faster than that it's only a hundred thousand dollars right i understand exactly what you're saying but we we've gotten rid of all of our debt except we do have uh less than a hundred thousand left on our original mortgage and we have one vehicle but we were the in just in two years we were the first pick now we're looking at the third peg okay i'm sorry you don't follow what did you say about you have a car debt yeah we have one truck in the business all the other trucks are paid for all the other equipment's paid for okay we have one truck in the business and then um we don't have any other retail debt we don't have any credit card debt nothing like that just how much do you owe on the truck uh about 35 000 okay and you have how much in cash right now our we have cash of about 20 000 where was the hundred thousand going to come from to build the building in the contracts that were in pla that are in place now for our business we have several years of contractual work so the future right is going to make this future revenue that's correct so you were just going to cash flow it is what you're saying oh my gosh our cash flow is just insane now but that creates a problem that you have to be more aware of you know you can get lazy what's on the mortgage your primary yes about 99 000 okay and then you also have a hundred thousand oat on the land uh we have about 150 on the land we paid the land down about 25 in the last few years 35 on a truck 100 on our house and 150 on the land yes and a 250 income yes all right what i would do is about 20 and about 20 in cash your shortest distance between where you are and wealthy is to become debt free okay and then cash flow whatever and along the way your cash flowing the business but you're also cashflowing whatever needs so i'm gonna get the truck paid off as soon as i can i'm gonna get uh i'm gonna get my house paid off as quick as i can then i'm gonna pay off the land and then i'm gonna build the building with cash you got it do you have an emergency fund or is that 20k it yeah that's what the 20k is and and we just weren't sure if paying rent was really the best thing to do during all this time yes yeah yeah you rent because you're because you still have debt yes okay yeah that's actually a good answer he's surprised that's the uh well that's the the thing is this you get caught up in the it's like um you know it's it's the same dichotomy that people say well i pay 600 or paid 1600 a month in rent on my home so i might as well buy a house because the payments are only 1700 you know and and they're not the same they're not the same that's a again it's a false narrative that people use to justify or to rationalize buying a house when you're not ready to buy a house because you're broke and so um well the payment's the same yeah but home ownership's more expensive than non-home ownership so and and and the the retail okay let's put 100 000 in the middle of the table all it's going to make you is the saved rent the fact that you don't have to rent the thing anymore the building if you used it to build a building you see your return on that 100 000 is not 100 000 in one year so it takes a while for this stuff to work out and i i kind of know that because i've done that here i mean i've dumped uh a couple of hundred million dollars into this campus that um that this company then rents back from me but uh but it's uh you know the rate of return is good uh reasonable on the money invested but it's not like i get that money back every year that i put into this it'll be years and years and years and years before i get that money back out of this place i own an asset but it's not you know it's not like okay you build a hundred thousand dollar building and save you a hundred thousand dollars it doesn't it's not it'll be years before the break even on that so that's that's what and doing the math on okay if we free up that truck payment then we free up your mortgage payment and you make 250k yeah now we can save up and buy that steel building like nothing and pay off the pay off the acreage so if i were in your shoes i would cut my lifestyle down to nothing i pay off my house in my truck this year and i pay off the building or the land the next year and i build a building the next year now the question is he's got 20k there that's his emergency fund but he's also got the cart i don't know what he's doing with the business so i'm a little bit worried that that business having no cash at all could be running a 250 000 top line our gross profit or whatever he's running there so i'm honest at home i'd take him down to a thousand but in the business i might let him have some retained earnings so i just kind of left that alone uh in this scenario if it would have paid the truck off completely i would have i might have reached over and grabbed it but i'm going to let it sit there for now and use this cash flow to clean this mess up if i'm him john thank you thank you for being a listener and thank you for your kind words we appreciate it this is the ramsey show [Music] [Applause] [Music] [Applause] [Applause] [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] george campbell ramsey personality is my co-host i am so excited smart conference is back this fall october 22nd we're bringing this world-class event to dallas texas you're gonna spend a whole day getting smarter we're gonna give you the tools and the inspiration you need to be smarter in every area of your life you'll go home believing you can meet your goals you can build wealth you can grow as a leader you can heal from mental health and relationship struggles you can get the job of your dreams we're bringing the best teachers and thought leaders joining me will be ramsey personalities rachel cruz dr john deloney ken coleman george campbell christina ellis pedro lattore and special guests craig and amy groschel will be there speaking on marriage craig is the pastor of lifechurch.tv over in oklahoma city the largest church in america today and he is an incredible he and amy are incredible communicators so this is going to be an incredible all-day event smart conference october 22nd in dallas the early bird prices are gone tickets are selling very rapidly smart conference traditionally sells out very fast it's been a while since we've done one because of all the garbage we've all been through but now we're back at doing live events again big time and excited about it we've missed doing them we've missed being out there in these cities with you guys george this is gonna be fun it's legitimately my favorite event and i learned so much i'm out there in the crowd taking notes because these powerhouse speakers are just bringing such inspiration motivation education and so i want everyone to be there it's a party i mean you get you know six 8 000 people in a room after what we've been through the last few years and we're just celebrating we're having a great time well and we're you're going to leave just exhausted and smart that's something it's drinking from the firehouse that's it man taste of everything we do here at ramsay solutions so ramsay solutions dot com slash events october 22nd in dallas get your tickets now before they are gone it will sell out early uh again you've seen the football games on television and everything else things are selling out quickly and easily these days and you do not want to miss this go ahead and get your tickets now at ramseysolutions.com events james is in michigan hi james welcome to the ramsay show hi how are you guys today thank you for taking my call sure what's up um so i i first want to say thank you um i had a nasty divorce two years ago that's when i discovered you guys everything you do um i went from a camper payment and a furniture payment all the way down to uh baby step five saving uh 15 per kid and a 529 plan wow so yeah again thank you um i guess my question is um i i saw one unexpected uh side effect of this was my kids are very observant my daughter is 14 now my son's 12. um you know i was getting all these questions dad why are you paying cash for this everyone uses their card all these weird weird things so i've been kind of using that as a learning opportunity for them to kind of set them up to manage money better when they're older now it's to the point where my daughter who is very ambitious uh wants to get her first job after school um you know good grades pending of course but uh i i really want to lead her in a way to where you know she could start saving now and just build these habits early so i i don't know how to go about this um do do the baby steps apply to a teenager like dude do i set her up with a um you know like a custodial ira or what do you guys typically recommend for this sort of situation well i think it's awesome that you're doing that and that she's seeing this stuff going i want to do this and not being pushed away from it so uh you know there's there's three things that you can do with money and if she understands that she's gonna be okay give save and spend and we've got her you know the junior piggy bank and maybe a little beyond her at her age but if she can learn to make money and then manage said money by giving a little bit saving a little bit spending a little bit she's gonna be okay yeah you don't have to get super sophisticated and do custodial iras or anything at this stage of the game for her to learn uh george is exactly right let's just make sure she's building the muscles appropriate to a 14 year old you can invest some you can give some and you can enjoy or spend some and you need to do some of that out of each paycheck and no the baby steps do not apply to a 14 year old uh she's got a she's got a place to live she's got food that's her dad's job uh but her job is just to learn how to handle money and to build these muscles in these three areas and then they can get progressively more sophisticated but we're not trying to um i mean when my when dave ramsey's kids were 18 they could not tell you uh you know super nerdy details about investments they knew a general understanding of mutual funds and they knew about generosity and they knew about not spending money you didn't have and that was about it and they then they were ready to go to college with that now you know you could take it a little bit further if you want i'll send you a copy of the book rachel and i did smart money smart kids which is all about teaching parents how to teach them or how to teach their kids how to handle money and it's all about age appropriate um you know three-year-old gets a different version of give save spend than a 14 year old gets but uh but yeah i don't you don't have to do a bunch of fancy fancy stuff it's just a matter of answer her questions put the stuff in front of her and you know if she'll learn to be intentional with the money she earns that's a big plus george is exactly right and at that age i mean our ramsay education team does a great job our personal finance curriculum is now at 48 of high schools and so i don't know if they have that at her school if not we've got a homeschool course on our website that you can jump on to but something like that could be a good resource for her if she does want to do a little more of a deep dive yeah she might actually love going through that amy is in san francisco hi amy welcome to the ramsay show hey dave thanks so much for taking my call sure i'm shocked about through actually i've called so many times well i'm honored you did how can we help okay well a few months ago i was searching on youtube um and i typed in uh my husband controls all the finances and i came across you and since then i've been binge listening to you and your daughter rachel and i've learned been learning so much in changing many things just really just learning and then making some pretty big changes so i'm at the very beginning and just working on getting out of debt i've i've been married for about 14 years and i have three kids and my husband and i are currently separated um so my question is it's kind of a relationship question but also a financial is both he's a financial advisor for morgan stanley and we never combined our finances we both came to the marriage with finances and he bought our home a year and a half before we got married uh and finances were always a really really heated topic for him and so i very ignorantly spent down um my being the separate money that i had coming into our marriage because i never had access to our community mess to our community money um and he was really resentful that i didn't have a job and we had three we had our three kids kind of back to back to back they're barely four years apart between zero and all three of them were born in four years i know i'm really just wanting to hear um just what you would have to say to this situation i'm i'm just super overwhelmed i'm sorry sorry for what you're going through um this is this guy's not a nice guy no he's he's not well he is if i do it no he you know he has a mean streak and uh he's very controlling and he's not a nice guy and it wasn't just money as everything else too right yeah yeah yeah but it was the money was always the trigger yeah but that's that it always it always is yeah the um i'm sorry so um you know i think what you guys are going to have to decide is if you're if the marriage is going to stay together and if it is it's going to have a whole new set of terms and that is that we're going to be sharing everything and we both get a vote um you don't get the only vote i don't think this guy's going to come to the table on that so i don't i don't have a good i don't think he is either so i don't think your marriage is going to continue i think you have to learn how to what this looks like for you personally going forward from here yeah what's the future look like for you as a single mom uh with huge child support and alimony from him and i don't know what your rights in california are to this house that prior to marriage your divorce attorney i'll have to tell you that [Music] [Music] if you're considering a career in technology i recommend bethel tech and i'm not alone here's what brendan said before bethel tech i was driving uber within four months of graduating i got a job paying sixty thousand dollars about two years after that i got a remote job that pays me a hundred and thirty thousand dollars all thanks to what i learned at bethel tech you could be next get started today at betheltech.net and get one thousand to twenty five hundred dollars off of your tuition again it's betheltech.net ken coleman [Music] [Applause] george campbell ramsey personality is my co-host today thank you for joining us america in the lobby of ramsey solutions on the debt free stage andy and nicki are with us hey guys how are you good yeah doing good welcome where do you guys live st louis missouri all right well welcome to nashville it's good to have you guys so fun how much data have you paid off uh we paid off thirty thousand dollars cool how long did that take it took us five months good for you and your range of income during that time 110 000 okay good what do y'all do for a living i'm a teacher and i work in human resources for who a manufacturing company good good for you guys wow excellent so what kind of debt was this 30 000 it was uh primarily student loans and a water filtration system for our home of course of course i love it all right good for you guys how long you been married 12 years okay so what happened uh five months ago that you go okay we're not doing this anymore we're cleaning this up boom just like that yeah so we in probably the first year of our marriage somebody told us about you know the dave ramsey plan and actually let us borrow a book and everything and i kind of like on my own i didn't read it i just went to the how do i make a budget and so i used an excel spreadsheet i made us a budget um and that was kind of it just stayed on the excel spreadsheet and we actually did the envelope system yeah we did the envelope a little bit a little bit here and there um we were not tracking all of our purchases um we weren't counting all of our receipts and so we were just just just just just doing it loosely sticking to the budget and paying extra on our debt we always had that we had student loans we had cars our entire marriage we've had debt so and so um so you were pretty much ish yeah exactly and ish is a wish and so what happened by myself so what happened that flipped it five months ago um i was mowing the grass and i wanted to listen to a new podcast and uh so i uh started searching for something new you know and obviously when we knew who you were as you know growing up in church and everything we've heard the name dave ramsey i just didn't know a whole lot about it i found the podcast just scrolling i started listening to these debt free screams and and just all the advice and and what your future can look like if you take hold of it and uh it was just very very eye-opening and i was convinced i just became very convinced that you know we can be free of this he was like we can be millionaires yeah she didn't believe me i don't think so where's the guy that just went to cut the grass i was like we're already doing it i'm paying extra on our student loans when i can so right so and she has been the number person i'm not a numbers person at all you know and i brought this to or we started listening to the podcast together um decided that we were just going to do this we're going to get on board and start hearing all these stories of people just getting this intensity and and fighting this battle basically just just to knock this out i was like this can happen we should be able to do this there's no reason we can't um so did you just need that bigger why that bigger vision of like what are we doing we're just looking at what's happening next week we need to look at what could happen 10 20 years from now well it was that and we weren't doing as much as we could we there was no gazelle intensity it was just like we'll do actually here like where we can so i want to retire yeah it was the long-term vision and the intentionality yeah so that got you guys fire i mean you went pretty hard at this 30k in five months making 110 i mean you this is rice and beans what were you guys doing it it didn't feel that way actually you know i knew that we did have um you know when we first got married we were combined income 30 grand you know we were on some government assistance you know we had a baby a six week old baby hardly any money you know um it was it was hard um we had some in savings too that we were able to pour into it because we really weren't doing the plan we had how much was in savings about 12 000. okay so 12 000 which left you 18 to knock it out in in the five months yeah that makes a whole lot more sense i gotta i gotta ask how much is a water filtration system these days it wasn't what they range they range we i think we financed about it was seven thousand yeah it was crazy oh my goodness those sales pitches are very convincing yeah they are yeah so you never let them into your house it's gone now wow you got rid of it or did you just paint it that's gone no that's gone we're keeping that good water oh man that's right wow way to go guys how's it feel really good yeah it feels very very freeing you know i did this really fast but very intense yeah yeah yeah i think it was really important for me to kind of like connect this to like a spiritual truth um and that like really gave me this umph behind it um you know this uh i i really like um what it says in the psalms that god has determined the stars and called them each by name and i i thought you know when we can label inc in every single dollar and give every single dollar a name just like the name of the app that's what this is all about is taking every single dollar and uh the zero point budget and creating that um you know when we apply biblical principles to our practical lives you know i really feel like we reflect the image of god amen beautiful amen it's well done it's well done that's what it took for me i had to have the same exact thing because i had all the head knowledge and i still went broke you know because i was doing stupid butt stuff and but i finally had to go okay this is god's ways of doing it and the answer to everything else is no that's the only answer that way and i it was an act of faith and that that flipped it and i think the people that have the fastest most dramatic turnarounds have an element of spiritual spirituality and psychology and a relational shift in their marriage as well those three things come together it just pours gas on this whole idea and you can go you go right through it and you and the thing about this is i don't even have to ask you this you'll never go back no there's nothing there's nobody that can sell you anything on that ever again it'll never happen uh you're done you you i but by the way you described that that's yeah that's that's what goes with that package so you know you're not going to fall off the wagon yeah and we just totally agreed the whole time you know i mean there was you know i was i was uh selling plasma doing some uber and on the side a little bit so i taught summer school for the first time in my career wow wow you guys got after it and already got it done that's awesome we're very proud of you who was your biggest cheerleader outside the two of you yeah so definitely um my wife's parents and they're here with us today mom and dad yeah yeah um and uh you know we had some other support you know um from just people have done it you know someone from work and um you know her and her husband had gone through it and got debt-free and um so that was uh just good moral support you know friends that supported us so very cool good for you guys how's it feel now that you're free awesome very very good never going back that's for sure amen amen and you cashflowed those amazing t-shirts to say three two one we're debt-free too yeah because she makes them she made them nice there we go all right yeah this is cool it really has enabled us to um you know i'm gonna go back to school for a master's degree and so just just a cash flow that yeah that's not something i ever thought i'd be able to do you know what are you going to study mental health counseling oh wow love it good for you well done man well done all right we've got a copy of baby steps millionaires for you uh that's the next chapter in your financial story for sure you've done an incredible job and we've got a copy of total money makeover for you to give away to somebody and stir them up and get them going you brought the kiddos with you what are their names and ages let's bring them into the shot this is yes we have noah he's ten and tenley is six all right everybody's got the t-shirts on everybody's ready to rock and roll i love it way to go you guys andy nikki noah and tinley from st louis 30 000 bucks paid off in five months making 110 count it down let's hear a debt-free scream three two one we're dead free i love it wow look at that a lot of smiles over there a lot of dead free faces that's a lot of fun a lot of awesome t-shirts what a pretty cool couple there they got a lot they got a bright future ahead of them a lot of good stuff could about to come their way going on for the masters living the dream man it's amazing and they'll be millionaires too before you know it they will hit that goal you're right this is the ramsay show [Music] [Music] so [Music] george campbell ramsey personality is my co-host today thank you for joining us america we're glad you're here ted is with us in boston hi ted welcome to the ramsey show hi dave how you doing better than i deserve what's up so another question for you i'm going to be starting medical school in august and i just wanted to know your opinion and how i should go about my finances in regards to like what i have saved and how much loans i should take out there in the next 40 years okay um well you don't have a long run a long runway here it's pretty much here huh yep so how much money do you have to pay for medical school so in the beginning of august i'll have projected about 150k saved up and uh what do you project your budget for medical school is so tuition is going to be around 43 000 a year and cost of living will be about 33 000 a year projected so we're talking about 76 per year more or less yeah how many years four four total yep yeah uh and will you have any income during that time i mean i'm it depends on how i do i might be able to do like a shift here there a month but i'm not really counting on working where'd you get 150 um i'm 26 so i've been working since more like 22 years old so i saved up wow okay so you're um 75 000 shy right did i do that right no i didn't do that soon he's about 300 000 he's got 150. yeah you're about 150 000 shy yeah you're right yeah so uh well you know we don't we don't tell people to take out loans here on this show and so i i'm going to be scrambling and figuring out a way to find that other money whether it be scholarships or fellowships or md phd programs or whatever they are whatever you can get into how much of that four years are you in residency so the way that medicine works is you do four years of medical school which is straight school you're paying tuition you're not making a dime after you graduate your four years then you do your residency and depending on the specialty you choose it's anywhere from three years to seven years right okay all right and so you know your plan right now is to come out with 300 000 or 150 in student loan debt is that your plan so yes i just don't know what's the best way to go about it i'm considering just keeping my 150 000 in investments and just letting that sit over the next four years and just taking out loans over the next four years absolutely absolutely that's effectively borrowing money to in on student loans to invest it no absolutely not no you're you're that makes you 300 000 in student loan debt no that's that's suicide no i'm definitely using the 105th 150 until it's gone and during that period of time i'm going to be trying to figure out a way to come up with the rest of it so there's no loans okay so drain the whole hundred fifty oh absolutely absolutely i mean if you can scrounge another thing i'm gonna do is i'm gonna cut my dead gum lifestyle down i mean 33 000 a year for lifestyle while you're in school that's a little steep yeah i know he's in boston which is my hometown but i think you can you can shave that down i don't care if you live with five dudes whatever you have to do to shave down that cost because that is something that is in your control uh to an extent and so i'm gonna be like dave said going for those scholarships grants whatever you can scrounge up there i'm gonna be working a little bit i mean you can do some work especially you're not in school you know 40 hours a week you're studying obviously there's still summers there's things you can be doing to bring in you know 10 20 grand a year the other thing i'm gonna do is do everything i can to find scholarship money uh it's a little it's a lot harder to find scholarship money for graduate work or med school or law school but we have talked to many people over the years that have found it and have done it and i would i definitely would i'd make that my thing so man and absolutely listen what what your question does it scares me to my bones because it tells me that in your mind you've normalized this level of student loan debt and it's not normal it's financial suicide and it takes years to undo these kinds of mistakes uh and so and with this kind of time by the way everyone that starts med school doesn't finish and everyone that finishes does not become a rich doctor uh this is mythology in this current world that we live in and so the set of assumptions that allow you to go 300 000 in debt in your mind and that's all okay is a really dangerous narrative you're setting yourself up for all kinds of problems alex is with us in nashville hey alex welcome to the ramsey show hey there dave i'm so thankful that god uh graced us with you and your team in the ministry that you all have we appreciate you so much and george uh hang on there the uh youtube trolls don't listen to them you're killing brother i appreciate the encouragement thank you alex hey i'm a 27 year old pastor in the nashville area my wife and i we have one one child who is almost two and uh we're in baby step two we have a very significant amount of debt uh 107 000 and uh we paid off significant amounts since december but we are seeking um i want to seek wisdom from you guys on if it is the right time for us to have a second child we really want a second child but we are gazelle intense on baby step two yes so uh it's always the right time to have a baby it's always the right time babies are awesome there's nothing better we just know obviously if you give me these same numbers and said you already had eight kids i'd tell you to take a chill pill and let's let's get the cadet paid off but you got one baby and another one on the way i don't we do not tell people to stop life because of debt uh you know not we don't tell young couples not our couples to not get married because of debt we don't tell people to not have babies because of debt ever never have in 30 years of doing this show those are decisions between you your spouse and god and um you know the the fact that you're aware that you're bringing a child into this situation and that you know with two little babies you guys are gonna have to really keep the fire burning and uh and get this debt knocked out means you're going to be okay pastor you're going to do great thank you i appreciate that what's your housewife i love you even more uh 102 000. okay you're going to do fine it gives me some hope here yeah it might slow down the snowball if you're going to save up during you know stork mode and make sure baby's okay and all that but other than that you're going to pay off this debt it's not going to delay you by that much yeah i was just concerned that the shovel might have to be repurposed a little bit it will it will but it's not it's not a deal breaker and it's not going to mean you're in debt a decade longer it's going to mean you're in debt four months longer or something like that right whoopty right whoopty babies are a big deal yeah i'm just the dave guy that wants to be out of debt yesterday so yeah well yeah i i agree i agree uh and uh babies are the best thing you can do so you know uh they're they're you know it's a and the other second best thing the best thing you can do is grand babies oh yeah if i don't know how big great grand babies are going to be i've been nicer to their parents but yeah this is uh this is what you ought to do for sure yeah absolutely you have all the fun and spoil them without having to load them up with sugar send them home or if you pick it up and say this one smells bad hey this one smells bad you're gonna have to break fix it this one's broken diaper cheese i can't fix this one this one's got a problem take them rachel that's so awesome just hand it right back hey rachel come here get your kid yeah this is great it's fun it's a blast yeah absolutely i love it but it's an interesting concept because we usually tell people stegazel intense but when it comes to still living your life and getting married we get that one a lot too yeah should i wait to get married because of debt should i be debt-free before i'm married or should i you know i have had people you know like i'm not gonna marry him until he pays off all his debt no no i don't i don't want to marry you if that's the case you know so no that's not listen if if you're not in agreement then don't get married but if you're in agreement about we're going to get rid of this and then we're going to build wealth and we're going to work together then you've got a marriage you know but you don't have to wait till you're out of debt to be married that's just not true plan we're gonna work together to accomplish these goals that's all it is instead of a part and you're actually gonna make more progress and progress faster but yeah um rachel was born the year we filed bankruptcy so we don't uh we've never planned babies around money um within reason i mean again if it's an extreme situation but but within reason i um i just don't put that as part of the equation that puts us out of the ramsey show in the books good hour george nice job kelly and jenna and ben in the booth the booth people are lined up in there even zach's in there this is the ramsey show [Music] 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 ramsay 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 george campbell ramsey personality is my co-host today thank you for joining us america we're so glad you're here open phones at triple eight eight two five five two two five that's triple eight eight two five five two two five we're gonna take your calls about your relationships your work your career your money uh and your life it's all right here on the ramsey show and we thank you for joining us there's about 22 million of you out there thank you for that uh we are the uh fifth largest podcast in the world right now which is kind of mind-blowing uh we're the second largest talk radio show in north america uh by any measure and uh absolutely because of you guys and we appreciate you we appreciate you being there our youtube channel is uh unbelievably successful we've got these gold buttons and silver buttons around here that mean we've had a bazillion listeners and viewers there and downloads and everything else all these youtube awards and it's all because of the numbers of you that are out there and we're so honored by that and we appreciate that if you want to do us a favor tell other people that's the biggest favor you could do it spread the word say hey listen to this podcast listen this talk radio show watch this on youtube and george and i would would appreciate that and the folks at ramsey would appreciate that spread the word that's how life change happens i found it takes a friend going hey you got to check this out yeah check this guy out and uh you know we'll do the talking for you you don't have to talk them into it we'll talk them into it we'll wear them down baby we've been doing it for 30 years that's right all right evan is with us to start off this hour in iowa hi evan welcome to the ramsay show hi dave and george uh it's an honor to speak with you both thanks for taking my call and thanks so much for all you do to help people well thank you what's up uh so i uh about two years ago i started to get after my debt i started with eighty five thousand dollars in student loan debt and uh right now today i'm at fifty three thousand um and so after kind of getting on board well definitely getting on board with your principles about six months ago um i realized that the mutual fund i have of uh twenty thousand dollars i need to cash out um i cashed out five 000 of that at the end of this past year uh leaving 15 left in that mutual fund and i was kind of waiting to see um to get closer to the end of the student loan pause to take the remainder of that out but it's starting to dwindle these past couple weeks with everything that's going on in the world and so i guess i'm just my question is should i pull it out right now it's at 13 000 or should i try to see if it's going to go back up and recoup some of the some of that loss does that make sense well if i'm in your shoes there's some things i can control and one of those things is not the economy and the stock market but i can control paying down the student loan debt as much as i can right now and so i'm cashing it out because i just don't know the future okay here's the swing evan okay the the likelihood that that student loan goes up ten percent in just a few months is very low ten percent in a year maybe that wouldn't be unusual but ten percent in a couple of months would be highly unusual ten percent of thirteen thousand is thirteen hundred dollars we don't have a thirteen hundred dollar discussion we have a fifty three thousand dollar problem thirteen hundred dollars one way or the other does not make or break this discussion okay so what happens is i have the feeling that's what you're gonna say yeah i do this all the time and that's why i recognize it when other people do it here's what we do we start running math numbers and we start looking at percentages and we forget to look and say okay there's a 53 000 problem and i'm over here trying to manipulate four dollars somewhere or 1300 an insignificant amount of money compared to the size of the problem in order to somehow get an edge on this problem where if i had taken that same level of energy and said okay i'm going to cut my budget i'm going to work six jobs i'm going to not go out to eat i'm not going on vacation i'm going to completely focus on this problem and i'm going to punch this 53 000 in the face so many times that it just falls over dead then you know that's the deal and so the secret sauce here evan is your commitment and your energy and your visceral response to this debt that is 95 of your solution five percent of your solution is math manipulation and so that that's what i forget that because i'm a math nerd and i'm always going to fix it with math and most of the time it's not math it's dave he's the problem on paper looks great but then life happens so here's what i'm seeing on paper if it helps you out you've already paid off 32 000 in debt yeah if you cash out the mutual fund you're now down to 38. no no you went from 85 to 53. so that's that's about a 32. so he's got oh yeah he goes down to 38. i'm sorry so then he'd go down to 38. now i can see the light at the end of the tunnel because he goes yeah i've done this before three thousand dollars a month you're done in a year boom boom and you start to go yeah yeah the momentum and then you start finding that money you say you know i go get that different thing i i change this around and that's how it works so that's the weird thing about personal finance is it's usually not a math problem it's usually a focus and intentionality problem a sacrifice problem a commitment problem it usually falls in those categories and that that's what changes everything so this that's just a great call evan it's a really really good question because it exposes the things that most of us do where we place our our energies or our tr you know we that we we think something's a solution that's not and so it's like okay i you know i'm going to refinance my credit cards from 18 down to 14. okay how much do you have in credit card debt a thousand dollars you just saved four dollars sometimes you just changed your life you know it's just you didn't say you might why why did you can't even pay for the stamp to fix this i mean you probably wouldn't use a stamp but oh my gosh you know i mean it's just that that's wow but this is a good it's a good point because with the stock market investing when you're up five percent ten percent you go i gotta keep waiting and you start to get a little bit a little bit greedy like you're in vegas you're like well i'm up i'm doing well let's keep riding this thing out and see how it goes but that's not the problem the problem is you you're not making the extra percent the problem is you're fifty three thousand dollars in debt and the payments are eating your life exactly so you got it evan you got this and i'll you you and i could tell by talking to you that you got it and so i i predict good things for you call us back with a debt free screening it's coming it's coming your way that's very cool personal finance is 80 behavior it's only 20 percent had knowledge that means that here's how you become wealthy it's 80 behavior it's only 20 head knowledge the mathematics of becoming a millionaire sixth grade level sixth grade level it's called compound interest it's not a calculus formula it's not a trigonometry formula the pythagorean theorem is not involved what a waste of learning that was the twerp in my mirror however is the biggest issue if i can get that boy to behave he can be skinny and rich you'll get there we'll get there you go you're one for two too soon you look great you're fired jordan okay this is the ramsey shop [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 whitepaper jumpstart your cfo career [Music] so [Music] george campbell ramsey personality is my co-host if you're wondering whether to buy or sell a home this year we've got some answers you can expect the market to be a lot like last year with prices still on the rise but interest rates are expected to go up too so what can you make of all this well if you're buying a home you might be up against some heavy competition some big price tags and if you want to sell your home chances are it'll sell quickly for top dollar of course this all depends on where you are because every real estate market's different but to win in any market you really have to know what you're doing this is not amateur hour so you need to work with someone who knows what they're doing you need an experienced high octane high protein real estate agent at your fingertips and we've got that for you we've done the vetting we've done the due diligence and we've lined you up with endorsed local providers as ramsey trusted pros they care about your values and they keep more money in your pocket you're going to get the most for your house if you're selling you're going to not pay too much if you're buying they're going to coach you walk with you they know what they're doing in this weird real estate world that we're in today check out ramseysolutions.com agent we'll connect you with a ramsey trusted pro who can help you navigate your local market ramsey solutions dot com slash agent our question today comes from blinds.com they're the number one online retailer of custom window coverings free samples free shipping and with the new promos they run every month you'll save even more use the promo code ramsey to get the best possible deal today's question comes from kim in arizona she says my husband wants us to help his daughter purchase her grandmother's home for sixty thousand dollars his motivation for doing this is he wants her to move close to where we live she was just let go from a job for tardiness and has fourteen thousand dollars in debt she just got back from an expensive vacation and doesn't even have enough for the down payment on this house how can i convince him this is a very bad idea wow the art of persuasion that's it's a difficult one i don't know that you can convince him of anything it sounds like he's made up his mind that his daughter needs to have this house regardless of her financial situation which is a bad place to be so kim knows this is a bad idea but she's asking how do i get him on board with the fact that this is not the time for her to purchase this house there is a few times in my life i have been an enabler but a whole bunch of times in my life doing financial coaching i have run into people who are enablers whether they're enabling someone that's an addict or they're enabling other bad behaviors enablers which your husband is kim is are the nicest people they want to help they're very sweet people if you're an enabler i know this about you you're a kind gentle compassionate you're not a grouchy person you're a sweet person because enablers always are they and they always feel like they want to help and he wants his daughter close to him that's sweet and he wants to help his little daughter and he's helped her a lot over the years to the point that she's basically useless he's helped her so much that she has no character she can't seem to show up at work on time she's a grown-up who can't even scrape together the money for this i mean you know he's created a mess and the thing the kim the only thing i've ever been able to do with enablers because they are convinced that they're helping and they are helping people do the wrong things uh and they're the sweetest people is i just tell them i just say you know you're so sweet you need to realize though that when you think you're helping you're actually hurting so honey i i don't think you should bring harm to your daughter i think you should love her enough to not bring harm to her and to participate in her craziness to participate in her irresponsibility and encourage it by financing it is bringing harm to her she needs to learn to keep a job by showing up on time get her freaking work done and the fact that she can't do that is because you've done this with her her whole life because you've helped her so much that she has no character she has no bones inside of her character and so honey you're not helping you're hurting you're bringing harm to her because you're not doing anything except she's not gonna get better because you did this um now the goal is for her to live closer to them and the grandmother and the grandmother's home is in the deal too so there's also some sentimental value here emotion and sentimental value so here's what we could do that i think would be good for uh his daughter is to say um okay here's what we're gonna do if you do these three things i'm going to help you but i'm not going to do them for you unless you do these three things one is you get four jobs and you start working 60 hours to 80 hours a week you will not die from hard work just before you die from hard work you pass out so you will not die from hard work you're going to be okay that's science it's it's science yeah and it's brain science and so you're going to be okay i want you and number one number two you're gonna go through financial peace university and you're gonna graduate in a week you're gonna binge watch the videos and you're gonna go through them and we're gonna discuss them together um and number three with all the money that you're making you're gonna save all of it you're going to spend none of it on stupid butt stuff because you need to come up with a down payment really really quick and if you do that for 60 days i'll help you get this house but if you don't do that i'm not going to help you get this house and so what you're doing there is you're encouraging her and you know i'll be mad one more i'll pay off half of your debt your fourteen thousand dollar debt after you pay off the first half get some stuff i'll match you you put a thousand on it i'll put a thousand on it you put two thousand on it i'll put two thousand on it until it's gone that gets where the fourteen thousand dollars worth of debt and then then we'll help you get grandma's house but um but she's not gonna be able to keep grandma's house she's gonna lose grandma's house she's gonna get foreclosed on if you go into it this way so the only thing i've ever been able the only way i've ever been able to get an enabler to stop enabling is to convince them that they're actually bringing harm because an enabler can't stand the idea that they would be hurting someone because they're sweet people and if i can finally convince them that they're causing harm rather than helping that their version of help is actually harmful then um that's that's the deal sometimes kicking someone's butts the best thing you can do for them absolutely absolutely especially if it's you know it's moms and dads with grown kids in their basement i mean um listen an eagle that doesn't leave the nest eventually is known as a turkey and so you you know you've got to help them leave for their sake you're not helping them you're hurting them you're bringing you've got a 36 year old in your basement you've brought them harm they're emotionally stunted in their growth their ability to function in the culture is is stunted because you've you've brought them harm and you thought you were helping providing that you're still continuing to do their laundry you know and it's just and that's not well dude that's tough love you're just tough it's not tough love honey that's love it's love to allow people to live out their best life create a sustainable situation with dignity that's empowering that's love that's real love yeah and uh you know toxic love is i'm going to keep you around so i feel better and let me continue your misbehavior that's enable that's enabler language what about what about this plan what if she could rent grandma's home since she's broke and eventually it can be hers well depends on who she's renting it from i don't know the ownership level we don't have that information that if dad has to buy it and rent it to her that's about she's not going to pay the payment and then he's not going to throw her out because now we're just we're just expecting your daughter that's awkward well we just it is awkward but you're also setting her up to lose because she knows she's not going to pay the payment she knows he's a pushover an enabler same thing and yeah so she she knows this and so she knows exactly where they stand so no you can't you can't put her in there with him as the backstop because him backstopping her has been the issue but but you know the truth is kim your husband is a kind nice man he really is a good person he's sweet he really is a sweet person and i'm not making fun i'm not being sarcastic i really do think he is he has just defined the word help wrong his definition of help is not accurate you're not helping you're harming when you give a drunk a drink you didn't help the drunk you feel better because you feel like you did something and you thought you were nice and you didn't create conflict but you didn't help you brought harm when a drunk continues to be enough to be a drunk because you helped that's the definition of harm toxic generosity that's what it is that's a definition of harm this is the ramsay show [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 homeownership and churchill is here to help go to their site churchhillmortgage.com to start your approval or get more information [Music] [Music] george campbell ramsey personality is my co-host today in the lobby of ramsey solutions on the debt free stage seth and kristen are with us welcome guys hi good to have you guys where do you guys live elkton tennessee about 45 minutes south of here on the tennessee alabama border down towards huntsville yeah very cool well welcome to nashville you not not not a bad drive up at all no actually it probably took you less than if you'd driven from nashville yeah i work here so oh okay even easier all right welcome how much debt have you guys paid off about a hundred thousand very good how long did this take you um longer than it should have and that was my fault um it took about four and a half years um when we first got married we got really intense we got rid of the credit cards we didn't have any debt or anything um we both took side hustles working at a pumpkin farm for somebody that we knew and paid off his car good um and then we um we worked for the next year and paid off my student loans and then after that we were kind of ish for about two years um he kept saying oh what's your foot off the gas yes he's like we need to do a budget we need to do a budget i'm like no we live on less than we make we save some each month why do we need a budget and um so then eventually she saw yeah eventually well then covet hit and i was um i'm a pediatric speech pathologist and our clinic was shut down for two months and i was pregnant and so then by the time we opened back up i was on maternity leave so i was out of work for several months and so um after kind of everything started opening up again you had an event here called what now yeah and we came to that yeah you were in the studio audience we were only a couple hundred people down there yeah yes yeah and so we went home that night paid for the every dollar budget and we got on board and as soon as i went back to work it was like game on okay you finish it up then all right we got you back on track i like it yes yeah the pandemic was the wake up call it was it was wow i'm proud of y'all it's done it's sometimes it's harder to return to something than it is just go all the way through it it was a little bit hard at first but i mean using the every dollar app literally made a difference i mean we tried the cash envelopes but we do grocery pickup and stuff that don't take cash and so it was harder to stay on budget for us that way with the every dollar app oh my goodness you're now like an evangelist but right before that you were saying i was like we don't need to do a budget we live on less than we make what was her favorite things i know i'm confused what was the turning point for you it was well it was we looked at how much we made each month and it was like why are we not able to save more why are we not saving more and putting more towards a debt than what we do and so um finally it was like okay we did the budget we made it so that we lived completely off his paycheck because i went down to part time after we had our son we're going to send her to congress she can straighten them out get them on every dollar budget she could straighten them out i could common dadgum sense i like it well done very good good for you guys so cool so cool how does it feel to be free really good yes so the last thing to go with sally mae you gave her her eviction papers we did yes we got rid of both of our student loans and we got rid of um that car that was the first thing so yeah we got a new car just recently pay cash for it you're right i like it yeah i think your name is a cuss word and car dealerships i think it is did you bring it up i gotta know oh yes yeah yeah sweet i got really really dirty looks like oh boy well they were you know they got confused that you were the customer with the money i don't understand yeah they were they were not wanting to come down on the price that we were willing to pay and we were like they're like we'll just finance the rest and we're like we don't do that we follow dave ramsey that was their sign that we are not making money off of these people that's why they were angry yeah yeah i love it that's fun that's cool what'd you buy what kind of car mazda 3. sweet good for you i'm proud of you guys well done all right now that you did it you you uh started you let your foot off the gas then you got back on and knocked it out what do you tell people the key to getting out of debt is uh don't give up i mean murphy is gonna hit it's gonna happen it happened to us last year i mean it was like we had saved up enough money to pay off his student loans had half of our emergency fund and then we had a big plumbing repair his other car went out and we ended up having to buy another car and it was just like boom boom boom but we paid cash for all those things and we just kept going it was like okay this set us back a couple months but we can still do it amen now you have a lot less emergencies now that you're not broke it's yeah it's funny i mean once we had the emergency fund in place it was like murphy stopped bothering us he went next door odd thing that works that way i like it very well done okay so you brought the baby with you we did yes and we're actually expecting another one all right and so this is uh what is his name and how old is he colin sanders this is colin he's 22 months all right and then this is ray she is due in august all right i love it you guys are amazing i'm so proud of you very well done we got a copy of the baby steps millionaires book for you that's the next chapter in your story for sure you're heading that way how ordinary people built extraordinary wealth how you can too also a copy total money makeover you can give that to somebody they start hearing about your story they're going to want to do this and you can show them how to do it that way and get it get it moving way to go you guys who was your biggest cheerleader outside the two of you um i would say our families our families were very supportive um i mean i grew up in a family they didn't exactly follow the dave plan but they knew i mean they were good with finances and everything um but they still use credit cards i'm working on them [Laughter] way to go you two proud of you very well done all right it's seth and kristen and colin huntsville alabama area uh southern tennessee to be exact a hundred thousand paid off in four and a half years what a great story count it down let's hear a debt-free scream three two one we're debt-free [Applause] way to go you guys way to go that's amazing i love that anyone can transform even the budget haters they can learn to love the budget more than that i'll be an evangelist for it amazing i mean love it that's you're right that's fabulous the best pitch for the budget is keep more of your money there it is once you figure that out she said we're working too hard where's our money going we can keep more of this if we do the budget if we make the money behave that we have that's exactly right very well done good stuff roth is with us in uh where is this uh alaska yeah homer alaska all right good stuff let's see here where's the button there it is hey roth what's up hey dave it's uh william ralph i just uh a commercial fisherman i grew up fishing and owned been riding my own boat since i was 18 i'm 25 right now and i i've done a bad thing and upgraded boats so i went from a 40-foot boat to a 56-foot boat but i had to borrow another 100 000 on it so my business debt is at 200 and my house debt so i vote mortgages at 200 000 and my house mortgage is at 120 and i'm wondering which do i pay off first vote pay off the boat first yep yep what are you making what's your net profit a year it varies because it's fishing i know some years are 200 and other years they're like 50. really yeah it can it can really vary a lot uh we've had more steady years as things have kind of leveled off also so what do you think you're going to make in the coming year what would you guess you're going to make next year i plan on making 100 in the following year here and with the bigger boat i also expect an increase year to year more steady as well okay yeah you need to live on nothing man get this boat paid off this thing's got you vulnerable you're you're in a really risky situation really risky uh so the boat is what i would tackle first and what's your uh what's your reasoning behind that because it is a huge destabilizer for your business this was a stupid move and if you get if you get in a sideways and a cash flow problem here that this 200 000 boat debt is going to take you out and so i want to get rid of that the house won't take you out this will take you out and it's the risk that's scaring me and there's a lot more risk than you perceive [Music] [Applause] [Music] our scripture today first corinthians 2 9 no eye has seen nor ear has heard and no human mind has conceived the things god has prepared for those who love him anne frank said what a wonderful thought it is that some of the best days of our lives haven't even happened yet ah i like that very cool that's true if all your good days are in the past you're uncle rico just reliving the memories there you go do a little napoleon dynamite just in case just in case somebody wondered all right hunter is in austin texas hey hunter how are you doing good dave god bless you and what you guys do there thank you sir how can we help need some wisdom from you on short-term investment a little back story quickly my wife and i sold our home after 10 years here in the austin area and as you know it's a great market and so we took an offer we couldn't pass up so question is we immediately put our windfall into a cd that comes up to term june 1st and uh we're just biding our time for a little bit until we find a plot of land where we want to build the next house we have no outstanding debt and we own all of our vehicles so where should we park that sucker for the next 24 months or so well there's uh you're gonna make nothing but lose nothing if you keep it parked in you know high-yield cds or something but they don't they don't even pay one percent so it's a bit of a joke it's like free parking yeah six tenths of a percent yeah it's just free parking we're just gonna park it here and uh we're not making anything but we're not losing anything and if you want to take a little bit more risk than that obviously you can move some of it towards the market but with the world uh in in upheaval it's a weird time to be playing market short term i don't mind playing it long term i'm not pulling anything out because of the world in up evil but parking stuff for 18 or 24 months you might lose some money you know and so you know you got to be willing to take that risk in order to make a little bit of money so it's just a matter of do you want to trade some risk for some money uh potentially uh or do you want to just be you know real calm and just park it there's not a wrong answer um how much money is involved 175 000 okay all right and so if you lost 10 percent you'd lose 17 000 yeah that would not keep you from building the house no if you made 10 you'd make 17 000 and that's probably your that's probably your over and under right would it yeah to your point what what would you recommend you talking about index funds like yeah i mean i'll just drop it into an index fund an s p 500 index fund i do that because i but but the the difference is it doesn't mean i'm i can't build the house you know because of it or something and and so i can i can it's not going to mat in my case i'll give you an example what i would be parking personally money in there for for a short term like that would be i'm parking it there until i find a piece of real estate i want to buy okay and so if i'm buying a a an expensive piece of real estate a 5 or a 10 swing one way or the other i'm not going to know within that what i'm going to pay for the real estate because it's not a certain piece of real estate it's not a certain target so it doesn't matter if i make a little or lose a little i and i just do it just because i'd rather not make six tenths of a percent but it but it's also if it's gonna steal your joy if you lose ten thousand dollars um you know then then just put it in a money market put in a cd it's not that big a deal you're not gonna get rich because of this move and you're not going to go broke because of this move that's my point you know so i i you know just get kind of gauge out you know how you and your wife feel uh i can tell you sharon uh would probably park in the cd my wife probably would just because she doesn't want to think about it and me i don't think about it when i put it in the index fund so it's okay either way you got to take into account how much anxiety is this going to cost watching it go up and down up and down each day versus going you know what if it's going to cause you to to watch the stock market and you usually don't then don't do it yeah then don't do it but i've got you know i've done this before when we were saving up for our house and i remember you're kind of going oh gosh i hope when i pull it out it went up and you have that feeling of oh gosh am i going to lose money on this and so if you really need it by a certain time and it's a short timeline i like just parking it in the high yield savings account and calling it a day yeah it's that that works 100 of the time and no anxiety which we could all use less and 100 of the time you're making no money so it's it's okay there's nothing wrong with that that's that's the purpose of it so good stuff sarah is in chicago hi sarah welcome to the ramsay show hi thank you so i started your program two years ago and i have managed to pay off about 43 000 so far i took on a side job this year to get that going and unfortunately i always say i did not do the correct deductions and now i have a four thousand dollar tax bill due oh yes so my question is is twofold one how do i make sure this doesn't happen again when the position i'm working is commission based and two um do i use my thousand dollar emergency fund to go towards this and is there like an extension how do you what are you making what kind of money do you make um on the side job period or just in portal both uh 86 000 that's like that's combined that was combined yeah okay all right um okay let's pretend that your hair is on fire because that's what owing the irs money is and so we're going to go completely bananas between now and april 15th and we're going to find four thousand dollars okay you haven't filed your taxes yet right no i just started them last night and then that's how i found out wow yeah what happened here yeah okay i also may work with a tax pro because they can really help you bring down that tax bill and so they'll make you the money back that they cost you that's probably true yeah and to avoid in the future quarterly estimated payments is what you want to be making if you've got those side hustles because i've been there and that's something i learned along the way was oh that helps to pay them something and you want to get as close as you can so you got to be socking away 25 30 percent of that freelance side hustle income so that you don't have to deal with this again yeah so when you make a thousand bucks on your side hustle you set 250 aside for taxes you withhold on yourself that's what george is saying okay and then you're supposed to file a one-page piece of paper once a quarter called a quarterly estimate and it's your estimated taxes and you're supposed to go ahead and make the deposit for those estimated taxes and then that way what amounts to is you would have put a thousand dollars a quarter aside last year and so you would have been at break even right if you had done that last year so that's how you keep from that happening this year as far as this you cannot file an extension on taxes you owe you can file in extensions on the filing of the tax return but the taxes are still due on april 15th and if you don't pay them you're going to be penalized and uh and have interest at it as well and so i'm going to pay every dollar you can pay even if you pay 3 600 and you only get penalized on 400 okay so you pay as much as you can scrape together you scrape everything together just as hard as you can go and you go on beans and rice and you i mean you go bananas between now and april 15th and get a tax bro to help you calculate this it'll be worth it silver lining is april 18th so extra three days this year dave she gets to save up that's helpful sarcasm thank you george yeah uh check ramseysolutions.com and click an elp for taxes and they'll sit down with you help you do this and even if your taxes are fairly simple in your case we want to make really really sure and they can help you set those quarterly estimates up too uh so that you can learn how to do that it's not complicated it's not that hard to do but uh but but having somebody show you how to do it the first time is not a bad idea it's worth a little bit of expense for professional fees to do that and they may know some deductions that you can take from your side hustle which will reduce your taxable income on the side hustle because basically your side hustle is self-employed income probably going to be filed on a schedule c on your tax return and they may know some things you can put in there that george and i wouldn't know because we're not very good at taxes so there we go good stuff that puts this hour of the ramsay show in the books thanks to george campbell to kelly to ben to jenna to zach to everybody in the booth i am dave ramsey your host we'll be back with you before you know it in the meantime remember there's ultimately only one way to financial peace and that's to walk daily with the prince of peace christ jesus [Music] hey it's rachel cruz co-host on the ramsay show if you want to do your debt-free stream live on the show visit ramsaysolutions.com debt free screen we'd love for you to come to nashville and tell dave your story that's ramseysolutions.com [Music] you

Channel: The Ramsey Show

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

Id: 2FaMaAPULHU

Length: 124min 20sec (7460 seconds)

Published: Wed Mar 09 2022