0:00

AFTER Scotts Live

0:30

from the headquarters of Ramsey Solutions, it's

0:32

the Ramsey Show where we help

0:34

people build wealth, do work that

0:37

they love, and create amazing relationships.

0:39

I'm George Campbell joined by the one and only Jade

0:42

Warshaw and we're taking your calls at 888-825-5225. I know

0:44

y'all are DMing us all your questions

0:50

and I say call the Ramsey Show.

0:52

Okay I can't sit here all day

0:54

in the DMs. This is where we

0:56

answered the world's questions. So call

0:58

us up and we will help you. Zachary

1:00

has chosen to do so to kick us

1:02

off. He's in Madison, Wisconsin. What's going on

1:04

Zachary? Hey how's

1:06

it going? Good how are you? Good

1:09

good. I was just calling to get

1:11

some input. I'm

1:13

currently a travel nurse and

1:16

we don't have

1:18

like a retirement plan for travel nurses

1:20

and my wife she doesn't have

1:22

a retirement plan and we don't

1:25

have any debt right now. We have about 200,000 in

1:30

savings and we

1:32

don't have much of retirement and we were looking

1:34

to buy a house but we didn't know whether

1:36

to just put all of our monies that we

1:39

have in savings into our retirements or to try

1:41

and buy a house. Hmm. We are

1:43

right now we have a Roth IRA. I have about 50,000 in

1:46

that and then she has like

1:50

maybe 20,000 in hers. Okay

1:52

how old are you two? 29 and

1:56

she's 28. Great. Well the good news

1:58

is you guys got plenty of time.

2:00

time to build wealth and the fact

2:02

that you have this amazing foundation, no

2:04

debt and 200 grand tells me that

2:07

you're on to something here. So your

2:09

luck is not lost and those Roth

2:11

IRAs are retirement plans. So

2:13

you do have those options at the very least

2:15

right now while you're doing this travel nursing. I

2:17

imagine you're going to eventually be

2:19

in a more stable situation with work.

2:23

Yeah, hopefully this year. And

2:25

so then you'd have retirement plans, right? Yeah,

2:29

for me, not for her. She works for

2:31

a South African company so she doesn't get

2:33

any benefits. So

2:35

you may have different options in the future.

2:37

For now, maxing out those Roth IRAs is

2:40

a great move. I'm guessing you have a

2:42

six figure income. What's the household income? About

2:46

$160,000 between both of us now. The

2:50

rates are going down for travel nurses. Yeah.

2:54

Well, that's still going to be plenty of money that

2:56

you could be investing. And the way we look at

2:58

home ownership versus investing, you're kind of in this baby

3:00

step 3B. So you

3:02

could be investing, you could just put all

3:04

this into a house. I would recommend a

3:06

mix of both. Have

3:10

you looked in your area? Do you kind of have your eye on

3:12

what you might want and do you know what it costs? Well,

3:17

I'm looking for like $350,000. My

3:20

wife keeps sending me one for like $500,000. Well,

3:24

I'm trying to talk her out of the sky. At

3:27

the end of the day, the guidelines that

3:29

we teach is you want to go in

3:31

looking for a 15 year fixed rate conventional

3:34

mortgage and you don't

3:36

want the payment to be any more than 25% of your take home

3:38

pay. So

3:40

that's kind of what your aim is. And

3:43

if you were looking to put $150,000 down on a $350,000 house, I'm sure you'd be just

3:49

fine because

3:52

I do want you to keep, you said you had

3:54

$200,000 saved. I do want to make

3:56

sure you're saving out three to six months of expenses and

3:58

that you're not thinking. hey, I'll just

4:00

dump this whole $200,000 into a mortgage

4:03

because, you know, houses

4:05

come with upkeep. What was that? I

4:09

said houses come with upkeep and ACs go

4:11

out and the roof gets busted and water

4:13

leaks in the kitchen and so you want

4:15

to make sure you go in with three

4:17

to six months of expenses into that just

4:19

as an emergency fund there. Do

4:23

you recommend moving over any of our

4:25

like save money so the retirement doesn't

4:27

include in that $200,000? So

4:29

it's all liquid in

4:31

the $200,000? Do

4:33

you recommend setting any of that aside to put

4:35

into like a longer term

4:37

retirement? I mean you could

4:40

max out your Roth IRA that's $7,000 for

4:42

each of you so that's $14,000 right there. You

4:45

could but you don't have to.

4:48

I mean you guys are 29. If

4:50

you said to yourself, listen, I'm gonna like I said, I'm gonna keep

4:52

out $40,000 of this for a

4:55

three to six months of emergency and from this point on

4:57

I'm investing 15%. You

5:00

could do that. How long did it take you to save the $200,000? I'm

5:03

curious because kind of as a rule of thumb

5:05

we also say if it's gonna take you more

5:07

than two or three years to save up a

5:09

down payment you should probably start investing something. So

5:12

how long did it take you to save this $200,000? About

5:17

four years just because of the travel

5:19

nursing money. And I'm kind of with

5:21

George. I mean George's camp I would definitely

5:23

set aside. I think there's just a

5:25

nice mix here. If you took 40 for your emergency

5:27

fund put 14k max out the Roths and the rest

5:30

can become your down payment that leaves you with 146

5:32

to put down and then you can start crunching

5:34

these numbers to go hey we can afford a

5:36

$400,000 house right now or we

5:39

can wait another six months and bump up to

5:41

450 if we keep saving. So you guys are

5:43

in a position where you have those kinds of

5:45

options but I would at least start the search

5:47

and you can get connected with a Ramsey trusted

5:50

real estate agent who sells a whole bunch of

5:52

houses and they know what they're doing in this

5:54

weird wild market even in your

5:56

area in Wisconsin and they can help you get your

5:59

homework going. to see what you can actually

6:01

afford and even start getting some

6:03

game plan. What are you gonna do and what are you gonna buy?

6:05

Yeah. I

6:08

appreciate it. Do you have the 200,000

6:10

in the high yield savings right now? I

6:13

have 98,000 on high yield savings and 35,000 in like a mutual fund

6:19

and then another 34,000 in Robin Hood.

6:24

Oh boy, get it out of Robin Hood. You're

6:27

about to get Hoodwing by Robin Hood, my man. Oh man.

6:29

That app makes it so easy. Those

6:32

apps are made to take your money, not make it. So

6:35

be careful. Yeah. I would move it all

6:37

the high yield savings, including your emergency fund,

6:39

and you could be making 4% to 5%

6:41

guaranteed without making a stupid decision. Indeed. Because

6:43

of an app notification. Which ain't bad, especially

6:45

if you're not ready to pull the trigger on anything

6:47

in the next several months. Like, listen,

6:50

you may as well put it somewhere where you can

6:52

get a little return on it. Yeah, every 100 grand that sits there

6:54

for a year, you made 5,000. So.

6:57

Okay. Pretty good couch money right there, my friend.

7:00

Yeah. Okay. All right.

7:03

I'll start looking into it. Thank you guys.

7:05

You got it. I appreciate it. You bet.

7:07

Happy to snap you out of the paralysis

7:09

analysis. That can happen. I mean, what a

7:11

problem to have. 200 grand sitting there. We

7:13

want to buy a house. We know we

7:15

should be investing. But hey, no debt

7:18

to pay off. Listen, that's a good place to be

7:20

in. I... Gives you different options. A much

7:22

better situation to be in as opposed to

7:25

I'm in debt. I'm $200,000 in debt. My

7:28

house is too expensive. I don't

7:30

have anything saved in retirement, which we hear

7:32

that every other call. I just, I got a

7:34

DM speaking of which on

7:36

Instagram, this guy was like, Hey, here's our situation.

7:39

We have these goals where we have no debt

7:41

except the mortgage. And I said, what's the mortgage?

7:43

He said it's a million dollars. And

7:45

they made 160, which is a

7:47

great income. But he said 60% of

7:50

their take home pay was going toward the mortgage. That's

7:53

known as house poor. Exactly. And so

7:55

that's what happens when people make these

7:57

decisions before they should. Cause They

7:59

got a little starry. While Zillow in yes

8:01

and they weren't, Well woe is me. the

8:03

housing market? crazy. Let's just by our dream

8:05

home now. Yeah, and dream home become a

8:08

nightmare. Don't do that. That's I can't breathe

8:10

thinking about a million dollar mortgage with one

8:12

hundred and sixty thousand income for sure. Sixty

8:15

percent of your money out the door.

8:17

That's called living to work. That's

8:19

middle class fancy right there that's living to

8:22

work, not working to live one hundred per

8:24

looks good to the outside world but you

8:26

can't even breathe and sour that box of

8:28

costs new way to my liver. I would

8:30

leave my house so might as I paid

8:32

too much my way to several areas. Yeah

8:34

not bad. Be up and added that move

8:37

with patients my friends out of debt with

8:39

emergency funds and get a solid downpayment. Do

8:41

this so that it's a blessing, not a

8:43

burden. This is the Ramsey show. Egypt's

8:49

identifies Jesus of Nazareth

8:51

as head of the

8:53

blasting. The season on

8:55

the chosen thousands of

8:57

is. On was.

9:05

Too soon and holding back anymore. And

9:08

must have time season for of the

9:10

chosen in theaters on February first. Starting

9:13

with episodes one, two and three Get

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your tickets now as chosen Rise up.com.

9:20

Welcome. Back to the Ramsey Show on

9:22

George Camel joined by Jade Warshaw the

9:25

Hour and we're taking your calls: a

9:27

triple eight, Eight to five, five, two

9:29

to five. Chris is up next in

9:31

Cincinnati. Chris Welcome to the Ramsey Show.

9:35

Bases: David Mccullough Absolutely. How can Jaden?

9:38

I hope. I'm

9:40

so my wife and I

9:42

are expecting our first baby

9:45

until I moved. Or

9:47

of yeah, super excited. Oh I'm

9:49

and then. Paying. Off debt.

9:51

Very consistent wait for the back

9:54

lot of money we are looking

9:56

to get rid of. The.

9:59

Motorcycle. that I currently own,

10:02

which I am upside down on. And in

10:04

our order of debt, it

10:06

would be second to

10:10

the house. So I

10:12

was wondering if I should, since we were trying to get

10:14

rid of it, if I should

10:16

skip the credit card and truck payment and move

10:18

straight to that and chip away at it, or

10:20

if I should just continue to follow the order?

10:24

I would follow the order. I mean, the point of

10:26

listing the debts from smallest to largest it's

10:29

more psychological than it is me getting

10:32

my hands on more money in one

10:35

moment, because you want to feel those wins.

10:37

My question for you is, this motorcycle, what

10:39

do you owe on it, and what is it worth? So

10:43

I blame myself for this, but it

10:46

is worth $17,000, and

10:49

I owe about $31,000. Ooh,

10:52

lordy. My goodness gracious. OK.

10:56

What's the payment on it? I'm just curious. My

11:02

lord. OK. What's the truck

11:04

worth? The

11:06

truck is worth $30,000. And

11:09

what do you owe on that? About

11:12

$30,000. Let's get rid of

11:15

that truck. This

11:17

pose is an interesting conundrum here. You got another

11:19

car? We

11:22

have a Jeep Wrangler that has paid off. We're getting

11:24

rid of the truck. What's the truck payment? The

11:28

truck payment is $575,000. Oh,

11:31

golly. Woo. My golly

11:33

gee willikers. This is crazy. And

11:36

what's left is the credit cards? Is that it? Yeah,

11:40

we just paid off one credit card, and

11:42

we only have one left, which has about

11:44

$4,300 on it. OK.

11:47

So that's your smallest debt. That's going to knock out

11:49

instantly. Yeah. Do

11:51

you have any savings? We

11:54

have about $10,000 saved. Good.

11:58

George, let's see if we're on the same page. You've

12:01

got a Jeep. Do

12:03

both you and your wife work

12:05

outside the home? Yes. Okay.

12:08

I think this is possible because especially when you don't

12:10

have kids yet and your wife's

12:12

probably going to be going on maternity leave if

12:14

not already soon here. I would

12:16

sell this truck for $30,000 and you've got

12:18

10k. I would throw that

12:21

towards if you wanted to just pick up a

12:23

cash car, if you needed it you

12:26

could but you don't necessarily have to

12:28

because I have a sneaking suspicion mom is going to

12:30

have a baby she's going to be at home for

12:32

a little while they can probably make the one car

12:34

thing work for a while he could knock out this

12:36

$4,300 credit card and

12:39

have some money to put towards

12:41

the upside-downness of this motorcycle for when

12:44

he does sell it. Yeah

12:46

with the baby on the way here's what I'm really trying to think

12:48

what I would do in your shoes. Oh you do have the baby

12:50

on the way. If you sell the truck

12:53

I like what Jade's saying is we're going to use the 10k and

12:56

maybe take six of that and get

12:58

a used car for

13:00

now. Okay. For you to get around and you leave her

13:02

with the Jeep until

13:04

baby's here and then stack up cash

13:06

until baby and mom are home safe.

13:09

Once that happens you may have enough to

13:11

get rid of this upside-down motorcycle. Okay.

13:16

Once baby and mom are home safe and you've got a bunch

13:18

of money stacked in savings. Right.

13:21

So that's probably what I would do in

13:23

that order and

13:25

if you could find an even cheaper car I'd love

13:27

you to knock out the credit cards and then just

13:30

stack up money until mom and baby are home. Listen

13:32

George is being nice because I would tell

13:34

you to go with one car. I'm just

13:38

I would never tell you to do something

13:40

I never did and when I was pregnant we

13:42

had one car because we sold the other one.

13:45

So I'm just saying it's an option to you it

13:48

just depends on how quickly you want to

13:50

go. And you know can she drop you

13:52

at work and you know do that whole

13:54

rigamarole carpool whatever you got to do to

13:56

get by for a little while. Mm-hmm. You've

13:58

got the option. Yeah you've got Keeping the

14:01

toys with wheels that's not one

14:03

of them. What's your household income? I

14:07

think in 23 it was just

14:09

over a hundred grand And

14:13

is she going to continue working outside the home

14:16

after babies here Not

14:20

like right way obviously, but I think that

14:22

her plan is to eventually return to the

14:25

nurse and a nursing home and

14:29

Believe her game plan is to go

14:32

back to work. Okay. Cool. Are you guys doing

14:34

any investing right now? No,

14:37

no, I Wouldn't

14:39

sure if we should you shouldn't not yet. You're right

14:41

I just want to make sure you weren't because if

14:43

you were you pause that and I would free up

14:45

some money as well Okay,

14:48

yeah, man. I think

14:50

this this truck is gonna free you up

14:52

of that 575 you can then start throwing

14:54

in the savings Yeah, and

14:57

think how quickly you could I mean the

15:00

10,000 aside because and there is

15:02

a world where you just keep that 10k sitting there until

15:04

the baby is born You don't do anything and

15:07

that's probably the best choice here But even with that

15:09

575 cleared up think how

15:11

quickly, you know, once baby is born and once

15:13

everything's you know Back up and running think how

15:15

quickly you could pay out this credit card close

15:18

the gap on that motorcycle There's just it's

15:21

so much money You know that even

15:23

just if they did this today six months

15:25

without that payment It's thirty five hundred bucks

15:27

exactly and so that's at least as

15:29

much as you could save just by getting rid of

15:31

the payment That's making no other sacrifices All

15:34

right okay, so

15:38

It would be smart then to once that

15:41

Is all out of the way what you guys just talked about to

15:45

chip away at the bike and tell it's down

15:47

to what it's worth and just Tell

15:49

it and break you in as far

15:51

as yeah Yeah The other option you could do

15:53

is go out take us the smaller loan against

15:55

the difference With a credit union to

15:58

get out from under the sooner Yeah,

16:00

they're you with a 13 14 K loan because

16:03

you don't even need the motorcycle. You don't need it for

16:05

transportation So you don't need to go get another

16:07

one So at least you'll

16:09

be 14,000 in debt instead of 31,000 in

16:11

debt, right? That's gonna make your snowball a lot bigger

16:15

Painted wife, so I would go down to your local

16:17

credit union. See if they would give you the amount

16:19

for the upside-down portion But

16:21

just to clarify the the the key

16:23

to press go on all this when you put the keys

16:25

in the ignition is when the baby Comes home safe.

16:27

That's that's when we're turning

16:30

the keys to start to start doing real

16:32

things, right? Right,

16:35

yeah, okay Sweet.

16:37

Oh, yeah, congrats. Great. You know, I want

16:39

to give you guys a little Baby

16:42

moon gift if you will I'm gonna gift you

16:44

guys financial peace university and every

16:46

dollar to give you guys a little bit of hope a little pep

16:48

in your step as you Make

16:51

this journey grueling journey of not only getting

16:53

rid of this debt, but also a third

16:55

trimester That's a real one. That's

16:57

a real one Man,

17:00

well tempers real top empers flare George.

17:02

There's a lot of emotion that most

17:04

of your geared toward me Any

17:07

man? Yeah Not just

17:09

you George. I would say I enjoy the nesting

17:11

phase cuz I like organizing so I was like

17:13

finally game on I like I do this let's

17:15

do this thing Listen, I feel sorry for

17:17

just about any man in the in the third trimester Like

17:20

real I you know what I did enjoy was she

17:22

got real into sugar in that third trimester And so

17:24

it was like ice cream and Oreos,

17:26

but don't eat hers because then it's atomic

17:29

status. I learned I need to get

17:31

my own pint get your own this is

17:33

a real advice like you're here for the

17:35

financial advice But you stay as a third

17:37

trimester advice. Yes, do not dip your spoon

17:39

into her ice cream That is lesson learned,

17:41

but that is a good Financial

17:43

piece that people don't think about is we

17:45

call it stork and storm mode That's right

17:47

only time to pause the baby steps pause

17:50

the debt snowball is if you're in a

17:52

major storm I'm not talking about a flat

17:54

tire. I'm talking about a major medical event

17:56

a job loss. We gotta go Hey, we

17:58

got a pause and save up And

18:00

babies fall into that category because

18:02

when things go right, it's wonderful. But it's when

18:04

the medical bills start to stack up and you

18:07

were in the hospital for more weeks than you

18:09

thought. And you know, you didn't think

18:11

about insurance not paying out 100%. That's

18:13

right. And what you're deductible and out of pocket max is

18:15

and so all of that adds up. Yeah, because in his

18:18

case, only, I mean, 10,000 saved sounds

18:20

like a lot of money. But if you're

18:22

deductible is $5,000, you know, you're gonna

18:24

hit it when you have a baby. So it's worth

18:26

talking about, you know, making sure you've at least, at

18:28

the very least, got that deductible in cash ready

18:30

to go because you're gonna be handing out

18:32

some cash when you have a baby. Before

18:34

you hit that max and you go, thank God. Yes,

18:36

it's on the insurance company now. That's

18:38

important. More of your calls coming up, AAA-825-5225.

18:43

This is The Ramsey Show. If

18:48

current times have shown us anything, it's

18:50

that everyone who has a family counting

18:52

on them needs term life insurance. For

18:55

over 25 years, the only

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you need faster. Go to zander.com or

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call 800-356-4282. Welcome

19:24

back to The Ramsey Show. I'm George Campbell,

19:26

joined by Jay Warshock. Our

19:28

question of the day is brought to you by Neighborly,

19:30

your hub for home services. Go

19:32

to neighborly.com/Ramsey and download their winter

19:34

maintenance checklist. It's free and it's

19:36

full of tips to get your

19:38

home through the colder months with

19:40

no issues. Again, you can check

19:42

it out at neighborly.com/Ramsey. Alright, today's question

19:45

comes from Lucas in Kentucky. He says, I'm

19:47

18 years old and earn $42,000 a year.

19:50

I got into an accident this week and

19:52

totaled my Camaro. I'm expecting

19:54

the insurance settlement will be about $10,000 and I still owe

19:57

$6,300. The

20:00

problem is I want a new car, don't

20:02

we all? I'm into muscle cars, aren't we

20:04

all? And found a 2023 Mustang for about

20:06

$46,000. I

20:09

bet you did. Yeah, I know

20:12

it's a lot, but I can get a loan at

20:14

7% interest in 84 months with payments of

20:17

$650 a month. My

20:20

parents said it's too much, thank you parents, for

20:22

what I'm making and for being so young. I'd

20:25

like a second opinion from you. Listen, we'll

20:27

give you a second opinion, a third, fourth

20:29

and fifth because I'm sure the booth guys probably agree

20:31

with us. Jade might give you more than an opinion.

20:33

It might be a whooping by the end of this

20:35

one. I want it. This is not

20:37

a good situation. There's nothing I would love

20:39

more than to put a whooping

20:41

on Lucas, but he's 18 and you

20:44

know, he needs a little... Did they stop teaching basic

20:47

math in school? Did we just like skip to

20:49

the Pythagorean theorem and calculus? In

20:51

many cases, yes. Like making $42,000 and

20:54

you're going to buy a depreciating asset that's

20:56

worth $46,000. He

20:59

doesn't see it that way though. He sees it as I'm making

21:01

42K, I live at home, I have no

21:03

bills, the world is my oyster and I

21:06

can easily make a $650 payment. That's

21:09

what he sees and so I get it, but

21:11

he has a broad opinion. The

21:13

problem is I want a new car. We

21:17

all want a new car and we

21:19

all love muscle cars. Everybody

21:21

looks at a Camaro and goes, I hate that. I

21:24

prefer my cars flabby without muscle. That's right.

21:27

If you're offered, if you win the prices right and you're offered

21:29

a 2023 Camaro, everybody's going

21:31

to be happy with that. Here's the confusing part though.

21:33

He says, I know it's a lot, but I

21:36

can get a loan at 7% interest for 84 months and the

21:39

payments will be 650. As though

21:41

this is some kind of opportunity for stupid. I

21:44

actually did the math for him, Jade. What is

21:46

it? He'd be paying, get

21:48

this, over $12,000 in interest alone. He

21:51

didn't think about that. So this $46,000 car, you're really

21:53

buying a $58,000 car. Oh

21:56

my word. Making 42. And by

21:58

the way, once you pay it off, it is. worth close to

22:00

58 it's probably worth 25. That's a good

22:02

fact. Because new cars on average lose 60%

22:05

of their value in the first five years.

22:07

That's right. That's right. Goodness. And he's gonna

22:09

sign on to an 84 month.

22:12

You know what's funny? These car dealerships

22:14

are so smart, Jade. They talk about

22:16

loans like they're babies. It's like

22:18

how old's your baby? She's 84 months old. Mm-hmm.

22:21

Just say it's a seven-year car loan because that

22:23

makes you think twice. Yeah. In terms of months,

22:25

I don't know, 84 months? Yeah. A

22:27

month is only 30 days, Jade. This will fly by. I think

22:30

he thought he's parlaying this settlement

22:33

into a great opportunity. He's like, listen, I'm getting 10,000. He

22:35

owes 6,300 still. I only owe 6,300. It sounds like after he

22:37

applies the... it

22:41

sounds... well the way I read it was he's getting

22:43

10,000. He owes 63, so he'll come

22:46

away with you know 400 or whatever. $1,700. Yeah. That he can use as a

22:50

down payment on this car is what I'm

22:53

thinking. I don't think

22:55

it's that he'll owe

22:57

6,300 after the fact.

22:59

But even still, no matter

23:01

how you slice this... It's

23:04

stupid. It's stupid and I get

23:06

so many people think, oh I got in an accident.

23:08

I'll just replace it with a brand new car and

23:10

you know for what I've been through I should be

23:12

able to get what I want. You know and that's

23:14

not it. But if you've got $3,700 or $4,000, just buy

23:16

a car in cash and slowly trade up. Think of this

23:21

as an opportunity to not go into debt

23:23

again because I'm guessing the Camaro that you

23:26

had before clearly you had payments on

23:28

it because you know. He owes money.

23:30

So let's look at this Lucas

23:32

as an opportunity to kind of break that debt

23:35

cycle and see what life is like without a

23:37

car payment. Think about all the things you could

23:39

do. My guess like I said before is

23:41

you're living at home. Think how quickly you could save for

23:43

the car that you want making $42,000 a

23:46

year at 18 instead of trying to level jump. I wish I

23:48

was making 42 at 18. Yeah.

23:50

This kid's very smart in a lot of ways. He

23:52

is very Smart a lot of ways, but you have to

23:54

be ultimately smart that you don't kind of go. oh, you

23:56

know, get too big for your britches and think, listen, I'm

23:59

doing good for my life. I thought my can just

24:01

jump into debt because. Debt. Is.

24:04

It's. Interesting. When I was that age,

24:06

I remember thinking people who had carts.

24:09

Limited. Be real. I thought

24:11

people who least cars were like. Ball.

24:14

Well. Wanna. Be

24:16

a ball of. That's what I thought like

24:18

if you're leasing a car if you got

24:20

a credit card and you've got like a

24:22

big a fifteen thousand dollar limit, I thought

24:24

that that's what you were supposed aspire. To

24:26

and. I learned

24:28

the hard way that all that

24:31

is is a facade and what's

24:33

behind it is stress, anxiety, payments.

24:36

And I daily billie to get ahead.

24:38

I guarantee their Instagram bio says entrepreneur

24:40

or my okay, you're unemployed and you

24:42

live with your parents bro. Like let's

24:44

not pretend right? Like. The

24:46

you own owning a vending machine.

24:48

Has he been an entrepreneur? Okay

24:50

goodness gracious, your were me I target

24:52

about somebody specific. Sometimes I wonder like

24:55

the my A Boomer the accidentally was

24:57

put into Millennial bought a little bit

25:00

but that's okay. I'm right there with

25:02

days. Anyway, little smile

25:04

on his own. Do this please.

25:07

Don't. Do this you make forty two k

25:09

year. save up and pay cash. Gets a

25:11

little hoop the until you can upgrade. guess

25:13

that's what I did, but uphill both ways.

25:15

That's what are the swords. Good job! It

25:17

wasn't long ago I was driving a six

25:19

thousand dollars old Civic. Bumper. Half

25:21

hang and off and I was proud of that thing.

25:23

As good you page as idols. Of. It

25:25

salary out there is there's your question

25:28

answered. Lucas said really, is your name?

25:30

Are moving onto the phone lines Bethany

25:32

As in Salt Lake City? Bethany? How

25:34

you doing today? Are

25:36

you doing great? How can we help? On

25:39

That. So we just very recently found

25:41

out that I'm pregnant. Little and.

25:44

Yet. They were were definitely planners so

25:46

on. So far what we've been doing

25:48

as we've been trying to put all

25:50

their savings and various regions and but

25:52

mostly focusing on a deposit for a

25:55

house. but now that I'm pregnant I'm

25:57

wondering if she we totally pod on

25:59

the house. And only focus on building

26:01

like a baby, thinking funds in the

26:03

house like our Help Those thunder. It

26:06

should I be equally doing all of i'm. Just

26:09

not sure what to do. The baby is

26:11

definitely priority in my book, ha ha and

26:13

that may delay the dream. Of homeownership

26:16

and may not. We just have to wait and see

26:18

by. Are you guys debt free with an emergency fund

26:20

right now where you are financially. Yes,

26:22

The were we're debt free were single

26:24

an income household, my husband works and

26:26

we have about four months saved on

26:29

emergency fund in about twenty five grand

26:31

and are on. Course. To

26:33

those are separate sons. The

26:35

a student? Okay, I. Just continue

26:37

to save up and that all becomes savings

26:39

in general. And then once baby and you

26:42

are home safe. Weekend on pause that the

26:44

dream and see where we're at with our

26:46

savings account. If you've got I'd want six

26:48

months with a single income family. I'd bump

26:51

that emergency fund a six months. Then whatever

26:53

is left over becomes your down payment fund.

26:56

Which. We should take money out of the the

26:58

home like I figure. I mean I'm not far along

27:00

now. I think a good try and do what we

27:02

can, but if we get closer. Should we take money

27:05

out of the home front and other places to

27:07

make sure you have a six month emergency fund?

27:09

The. Ah yes, just a matter of labeling it

27:12

differently, right? Okay, Cause

27:14

the money's the money you get. Sissy Grand. Total

27:16

Weather's twenty five and twenty five. or thirty and

27:19

twenty. you know they are the go Here's have

27:21

six months output that a separate high yield savings

27:23

and I have a different high yield savings account

27:25

or bucket for the home downpayment. Okay,

27:30

That makes sense. Yeah. That's good.

27:32

Will congrats on a baby. What's the due date?

27:36

Is going to the end of September. Nice! Ah

27:38

an. Exciting time, right?

27:40

Yeah, hope that helps and hope you guys

27:42

have become homeowners one day as well. That's

27:44

to really fun pieces of adult thing for

27:46

sure and the kid get in the house.

27:48

But here's the thing. gate. A lot of

27:51

people go. We. Have the baby now.

27:53

We. Need the room. We need him like

27:55

a baby. A single So much. It's

27:57

a tiny little bassinet in the corners.

28:00

They're fine. My child, my first

28:03

born son who will remain

28:05

nameless on here, he, we

28:08

had his whole bedroom done, his crib and everything.

28:10

He never even was in that room. Nobody

28:12

told me that baby lives next to your

28:15

bed for the first few months. Yeah, at

28:17

least six months. This joker didn't even go into

28:19

his bed until six or seven months.

28:21

So this idea that your two bedroom isn't enough because

28:23

you had a baby and now we need to upgrade

28:25

to the five bedroom house, it's crazy. Yeah.

28:28

It's crazy. It's crazy. But it's exciting

28:30

and I think you just feel like, oh, I want to

28:33

get the baby home. New stage. Yeah. Yeah.

28:36

That was a big phase for us. We got the board and

28:38

batten in the room, got it painted a little blush pink. Very

28:41

exciting for me. She's never even been up in there. She doesn't

28:43

even know colors yet. Let's be real. Might

28:45

as well be agreeable gray to her. There

28:48

you go. There's your Sherwin-Williams reference for the day. More

28:51

of the Ramsey Show coming right up. Don't go anywhere.

28:56

This episode is sponsored by BetterHelp. Hey, this

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is Dr. John Deloney and some people think

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29:58

Welcome Back to the Ramsey Show. I'm George P... I'm

30:00

joined by Jay Warsaw Open phones

30:02

a Triple eight, Eight to five,

30:04

Five Two to five You call

30:06

us. We'll talk about your money,

30:08

your life, whatever is going on.

30:10

Celeste joins us in Guadalajara, Mexico

30:12

Mountain Time Celeste how you doing

30:14

over there. Try

30:17

and say nice to meet you

30:19

guys and sell. I'm a grad

30:21

Syrian, I'm visiting. My soaps memes

30:23

are my question actually. I.

30:25

Is about them so they're asking

30:27

for and as I some other

30:29

they should seek out alone for

30:31

a car i'm a used car

30:33

or whether they should dip into

30:35

their said. Why?

30:38

Would they? Why do you think that They would? Prefer.

30:42

Having payments over using the case they

30:44

have. I

30:46

so on. I guess I'll say it

30:48

and pieces them by add we have

30:50

about four hundred thousand pesos made up

30:53

and then I knew I was a

30:55

used car on as six seven year

30:57

old car would be a bow and

30:59

two hundred and fifty thousand pesos and

31:02

reason I say this is is hi

31:04

there are debating as it has my

31:06

on this is they're pretty much the

31:09

only savings account and in see my

31:11

father is the only one who works

31:13

on my mother does not. On.

31:16

The own two cards. Are one

31:18

of the cards is are too much on it's

31:20

last legs. And my mom is

31:22

looking for a job on and. Trying.

31:24

To find a way to reliably get to work. Okay,

31:27

So I'm yeah. So

31:29

that's an assumption that so i think idea

31:31

where he is thought. He

31:34

would not add it's in about five

31:36

years. It took them five years to

31:38

accumulate. What they haven't seen been an

31:40

email from a to have an emergency

31:43

fund and they would have to dip

31:45

into. Why does it take five years to the

31:47

have any other day? We

31:50

don't have any other that so I'm

31:52

my. Date: Own three properties

31:54

on drop it Off or both as

31:56

a party paid off. and

31:59

die i don't I don't think my father

32:01

wants to sell any of them.

32:04

So I think his

32:06

idea would be to use the

32:08

money that they have now and not

32:11

take out a loan. I think he's pretty resistant on it

32:14

now. And why are

32:16

they asking you about it? I'm

32:19

just a concerned bystander. Okay. So

32:21

did they bring it up? Did they say, hey, Celeste,

32:23

we're wondering, do you think this is a good idea?

32:26

Or did you say, hey, I overheard you guys talking

32:28

about this. I wouldn't do it. Yeah,

32:30

that's the second one. Okay. So they didn't

32:32

ask for your opinion. She's concerning their opinion. You're

32:35

just concerned for their financial well-being as

32:37

a great daughter. Yes. Okay.

32:40

Well, I just did the conversion here

32:42

from peso. So they have about 23,000

32:45

plus USD. And

32:50

they're looking to spend about 14,000 of that USD. Yes.

32:55

Okay. And they would leave them with 7,000. I

32:58

mean, that's still – they can then rebuild their emergency

33:00

fund with the payment they would have

33:02

been making on the car. They just use that

33:04

to replenish the emergency fund. Yeah. And

33:07

just on a – theoretically speaking, I consider

33:09

– I would consider – and again, we're

33:11

having this conversation with you, not your parents.

33:13

So you're probably right there with us. But

33:16

if I'm looking at risk, I'm

33:18

thinking, okay, going into debt is

33:20

creating a bigger risk than depleting

33:23

my savings by half to avoid debt.

33:26

And I almost feel like they've got the

33:28

equation swapped, and they're thinking depleting my savings

33:30

is a bigger risk than

33:32

going into debt. And that would be completely

33:35

wrong, because usually your debt – the debts

33:37

in your life are what create the emergency

33:39

feeling, not lack of savings. Something goes down.

33:41

It's like, oh, I've got to pay the debt off. I need the

33:43

savings. Yes. So if you don't

33:45

have debt, you lower your risk. And so

33:47

– Right. Okay. You're asking us

33:50

how do you talk to your parents about this? You

33:52

could tell them, listen, I care about you

33:54

guys. I know you're not – you don't

33:56

need my opinion, but I care about you

33:59

guys so much. that I'm begging you not

34:01

to take out this loan because it's going to put your

34:03

future at risk. And you can show

34:05

them some math. Some people need the math, some people need

34:07

the emotion. Maybe it's a mix of both where you say,

34:09

listen, this is what this car is really going to cost

34:11

you with interest. Here's what you could do

34:13

with that freed up payment. And worst case,

34:15

he can sell one of the properties if something huge

34:17

goes down. But my

34:19

bigger concern is why it took him five years to

34:22

save up an emergency fund. Is the income low? Well,

34:25

he's got these three properties too. Yeah.

34:28

Well, one they recently inherited from

34:30

my grandmother's passing. So they're renting

34:32

that one out. My

34:36

mother doesn't work currently.

34:38

And my father makes about

34:40

50 with the rent from that property.

34:43

And his job, he makes about $50,000 a month in pesos. Okay.

34:48

That's about three

34:50

grand almost. Yes.

34:53

Okay. So that's the part

34:55

I'm looking at here is, okay, that's how many months

34:57

of his income is he going to take to buy

34:59

this car? And when you do that math, it's a

35:01

little more – it puts it into perspective. And you

35:03

go, it's $14,000 divided by three. That's

35:07

almost five months of him working to

35:09

get this car, which is not bad. And it tells

35:11

me in five more months, he can replenish that money.

35:15

If he doesn't have a payment, it's going to free

35:17

them up. And if their expenses are low and these

35:19

rentals are cash flowing – Right.

35:23

Yeah. But that would be minus

35:25

like whatever monthly expenses they have. Sure.

35:27

Do they have a lot of expenses? Not

35:31

currently. Both my brother and I are

35:33

out of the house. So it's mostly

35:35

just them right now. Okay. You said your mom's

35:37

looking for work. She is,

35:39

yeah. So how are

35:42

you doing financially? Because what I'm looking

35:44

at is I'm thinking about

35:47

my younger sibling, because I'm

35:49

trying to liken it to

35:51

what you're at. You're the

35:53

kid trying to tell their parents what to do.

35:56

So I'm thinking, okay, my younger brother, he's seven

35:58

years younger than me. What would

36:00

make me take his advice of him saying, hey,

36:04

I heard you were about to go buy a

36:06

car, Jade. Here's what I

36:08

think you should do. I'm trying to flip

36:10

that on its head and think, okay, what would

36:12

I want? I'd want him to be doing better

36:14

than me financially and I can see it. I'd

36:17

want to be able to look at him and

36:19

go, he seems like he's got it together. He's

36:21

always talking about paying cash. I've never seen him

36:23

talk about debt. Matter of fact, I don't think

36:25

he has any debt. I'd want

36:27

to be able to visibly observe certain

36:29

qualities that make me go, this is

36:31

somebody who has their financial

36:33

life together. So my question is,

36:35

how are you doing? Right.

36:39

Totally makes sense. I'm

36:41

actually a graduate student right now

36:44

in the States. So I'm taking care of

36:46

myself. My brother's in college. He's

36:49

also putting his way through school. I

36:52

mean, I currently don't have any

36:54

debt other than $7,000 in

36:57

student loans that is on pause right now since

36:59

I'm still cool. So

37:01

that's kind of where I'm at. OK. You

37:06

can attempt this. I don't know what your relationship is with

37:08

your parents. But all you

37:10

can do is float it out there. I think,

37:12

like George said, you've got to say it in

37:14

a way. If you're not saying it in a

37:16

way that's like, here's what I'm doing or

37:19

here's what I've learned, then the chances

37:22

of it sinking in is going to be little

37:24

to none. And I

37:26

think the best way that you can relate it to

37:29

is probably your own debt and

37:31

the mistake you feel around that. Like if you say,

37:33

listen, I took

37:35

out the $7,000 student loan and

37:37

I'm now realizing it would have been better for me

37:39

to pay cash and here's why. And

37:42

I don't want you to make that same mistake with

37:44

this car payment because I know how I feel. And

37:46

you guys, that's

37:49

the only way that you're going to be able

37:51

to shift this in their mind as

37:53

opposed to just saying, hey, you should really use

37:55

the money you have saved. Right.

37:58

OK. That makes sense. Are you

38:01

a Spanish speaker? Yes,

38:03

I am. You should check out and have them

38:05

check out our friend Andres Gutierrez. He's like Spanish

38:07

Dave. He used to be one of our personalities

38:09

here and he does a great job explaining these

38:11

concepts to that community and he

38:13

has his own show on YouTube and radio and

38:15

his own version of financial peace. So be sure

38:18

to check that out. I think maybe he'll connect

38:20

with them better than I can for sure. That's

38:22

a good point. Connect to be a good resource

38:24

for them. Absolutely. Thank you for the call. Thank

38:27

you guys. Of course. George,

38:29

that was a deep cut. My man Andres,

38:31

I was just thinking about him. I was like, man,

38:33

they're talking pesos. I'm doing calculations here. We got to

38:35

send him to Andres. I feel like that's the only

38:38

word I know. So you know how Dave does the

38:40

scissors with the credit cards? Uh-huh. Andres

38:42

has a machete. So he's got a

38:44

giant machete that he uses to cut up cards.

38:47

He's got a wooden block and it's so

38:49

entertaining and he's a solid dude doing

38:51

great things out there in the San

38:53

Antonio area. You're telling me he

38:55

puts the credit card on a cinder block. It

38:57

goes on this wooden thing and the credit card

38:59

sits in there and then he'll just swipe them

39:02

with machetes. That's dramatic. It's very intense. That's very

39:04

intense. But you need intensity to convince people to

39:06

get out of there. They thought we were intense.

39:08

My goodness. There you go. That's about as cultured

39:10

as I'll get this hour, Jade. That

39:13

puts this hour of The Ramsay Show in the books.

39:16

Thank you to my co-host, Jade Warshaw. All the

39:18

dudes in the booth, we got them all today.

39:21

Austin, Ben, James, Zach, Nathan,

39:23

Andrew. They're all hanging out. And thank you,

39:25

America. We'll be back with you before you

39:27

know it. This has been The Ramsay Show.

39:34

Live from the headquarters of Ramsay Solutions,

39:36

it's The Ramsay Show where we help

39:38

people build wealth, do work that they

39:40

love, and create amazing relationships. I'm

39:43

George Campbell joined by Jade Warshaw and this

39:45

is your show, America. So call us up

39:47

at 888-825-5225. We

39:51

will do our best to give you

39:53

advice and it's worth what you paid for

39:55

it. Remember that if you don't like it.

39:58

And don't call in if you don't. No we're

40:00

going to say and you don't want to take it. Don't.

40:02

Waste the time. But if you need that confirmation a

40:04

push you over the fence. Yeah, because you know he

40:06

will. You need to do. We're happy to give you

40:08

a little. Low. Pumping want to be

40:11

a little. First. They need

40:13

to be handled firmly. Their ago that and

40:15

that's Woodgate. Your foresees the muscle. I'm.

40:17

Just the eye candy the gets us through

40:19

it all. Michael's up first in Wilmington, North

40:21

Carolina. Michael welcome to the show! Hey

40:24

thanks, yell and scream Ever May have been

40:26

listen and sell for. Two years

40:29

now, I'm just looking for some advice

40:31

com. My wife and

40:33

I bought a house together and

40:35

twenty twenty two and she recently

40:37

decided she wanted to divorce and

40:40

she's going to the move. but

40:42

now next week I'm sorry I'm.

40:44

And I appreciate it need to

40:47

harm and so I know how

40:49

bunch of my friends and family

40:51

have had good on. You know

40:54

the only way to be able

40:56

to com alone over would be

40:59

to refinance armed and I found

41:01

out to our mortgage company that

41:03

they do have an assumption of

41:06

the loan on process and I

41:08

was just curious which which way

41:10

might be best for me to

41:13

go that way. I. Could get

41:15

the mortgage and everything come solely

41:17

in my name. The.

41:19

Outlets that's great the your lender has those options a

41:21

lot of I'm the only way to do is refinance

41:24

but again it's always worth asking a lender to see

41:26

if they can do loan modification or the loan assumption

41:28

and a sounds like to have you look into the

41:30

terms of that it sounds like it'll be the cheaper

41:32

route free to do alone assumptions if you can afford

41:34

it and take on a risk on your own. Sure,

41:38

they literally just sent over the

41:40

email today are i'm i'm at

41:42

work said kind of went through

41:44

it a little bit of and

41:46

just even the numbers from that

41:48

it's ah you know like he

41:51

said i can be kind of

41:53

pricey on and so i wasn't

41:55

quite sure what the refinances we

41:57

haven't touched any of the equity

41:59

in it anything. So that's part

42:01

of the reason why I was hoping that,

42:03

you know, before I found out about their

42:05

assumption details, might have been able to refinance

42:08

and maybe use that equity for

42:10

the stuff to refinance it. But when-

42:12

What is she owed in this deal?

42:15

What? Have you guys gone through the process?

42:18

Well, that's what I wanted to ask. Are

42:20

there lawyers? Is he going to get a

42:22

piece of this home and the equity? I

42:25

don't know. It's

42:27

not like I'm trying to do all

42:30

this behind her back or shady. I'm

42:35

just trying to figure

42:38

out the best option for

42:40

me because I want to stay in the

42:42

house. My father has just been put on

42:45

hospice and he lives with me. So I'm

42:47

trying to keep the house. I

42:49

just want to know if you guys- like did you guys say, hey,

42:51

we're just going to figure this out ourselves or

42:53

are there any lawyers involved that are

42:55

saying and kind of mediating this for

42:58

you and saying, okay, here's the deal. Here's what it's going to

43:00

be. I just don't want you to get ahead of yourself and

43:02

this not be the terms of the actual

43:05

divorce. If you go through all this and then it

43:07

turns out you have to sell the house or do

43:09

a cash out refinance to pay her portion anyways and

43:11

so now you've got two refinances. So that we're just

43:13

trying to make sure you know what the next steps

43:15

are before you make a big financial move like this.

43:18

Sure, sure. No, we have not gone through

43:22

anything just yet as far as lawyers

43:25

or any type of agreement. I've been trying to work

43:28

with her as far as some type of

43:31

agreement. How long were you married? The

43:35

end of February will be two years. Okay, so

43:38

depending on the- I mean the judge is who's

43:40

going to decide what's fair and equitable here and

43:42

so there may be a situation where he goes,

43:44

listen, you guys weren't married enough to split this

43:46

half and half. Here's what she gets, here's what

43:48

you get, you get to keep the house. Who

43:50

knows how it's going to shake down but I

43:52

would absolutely work with an

43:54

attorney even if it's one and just mediation between

43:56

you two to get all of it down on

43:59

paper. before we make a decision

44:01

on what's next. Yeah, I definitely don't pull

44:03

the trigger on any of this yet. Okay,

44:05

yeah, no, I appreciate it. I just

44:08

wasn't sure if regardless of however certain

44:10

ways went about, if there was a better way

44:14

to handle it if I was able

44:16

to assume or if refinancing was the

44:18

better option. How much equity do

44:20

you have in the house? I'm

44:24

not sure, honestly. Normally, I was

44:26

the one just out working and

44:28

putting the money in the account,

44:30

and I let her handle paying

44:32

it. Have you guys

44:34

separated bank accounts yet? Not.

44:37

Well, we had one joint account,

44:40

and we had one for the

44:42

house, and then

44:44

we each had our own individual.

44:48

Okay, I would separate finances to

44:50

keep things clean right now. Okay.

44:53

And it sounds like you're going to be paying the mortgage on your own. Yes,

44:56

well, I have been. And how much is

44:58

the mortgage compared to your take-home pay? The

45:02

mortgage is $17.50 a

45:05

month, and I bring home give or take

45:08

for a month. Wow,

45:14

that's tight, tight, tight like a tiger.

45:17

That's almost after income going forward with this. And

45:19

here's the thing, if let's say she gets a

45:21

portion of the equity and you have to do

45:23

a cash-out refinance. Well,

45:26

that's going to make your mortgage payment go up. And

45:30

so I don't know that you're going to be able to stay

45:32

in this house based on how much equity you have and what

45:34

this new mortgage will be. I mean, you

45:36

already kind of can't, even if that weren't a factor.

45:40

Sure. Well, like I said, I've been the

45:42

one who's been paying for the house ever

45:44

since we moved in. I

45:47

work a full-time, and I try and pick up some side jobs

45:49

here and there to make sure that we're doing it. But that

45:51

was with her income too, right? Was

45:54

she contributing financially? No,

45:56

not to the house. just

46:00

really scraping by them with this.

46:04

Well, what I tried to do is I tried to be

46:06

the one that went out and worked

46:08

to cover the bills so that way she could

46:11

stay home and focus on the baby and

46:13

focus on school and not have to work.

46:16

You guys have one kid together? Yep.

46:20

Yeah, we just had a son seven months ago. I'm

46:23

sorry. So when

46:25

you go out and work, you said you kind of closed

46:27

that gap. When you go out and do other jobs, what type of

46:29

jobs are you doing and what are you bringing home in addition to

46:31

your $4,000 a month? Well,

46:34

it's not consistent, but

46:37

I go out and I do mechanical services

46:40

on the side. So

46:42

I could bring in anywhere

46:44

from, I don't

46:46

know, an extra grand to

46:48

extra three grand a month.

46:52

Here's where I'm at, listening to what you're

46:54

saying and kind of what it's been and

46:56

what you're bringing in and the consistency or inconsistency

46:59

of it all. With what George is saying, as

47:01

it is, I think that your

47:03

mortgage was already too high, assuming

47:06

she wasn't contributing much financially

47:08

there. And then like George said, if you

47:11

do this cash out refi, it is going to cause your

47:13

monthly payment to go up. I don't think that you can

47:15

handle that. You're going to sit

47:17

and you're going to talk with a lawyer and you guys are

47:19

going to figure this out, but if it were me, I'd probably

47:21

try to walk away from this a clean break and get into

47:23

something that you can afford monthly. It's 25%

47:25

of your take home and is not contingent.

47:28

One thing you don't want to do, and this is not just for

47:30

you, but anybody, you don't want to have to side hustle to

47:32

pay your mortgage. If you're side

47:34

hustling to make sure that you can afford

47:37

your mortgage payment, something's wrong and you're out

47:39

of balance. Not sustainable. Yeah, side hustling is

47:41

to do extra things like pay off debt

47:43

and save for things, not to make sure

47:45

you can clear your mortgage. Hang

47:47

on the line. We're going to send you a link to

47:49

our divorce checklist from our friend Dr. John Deloney on the

47:51

Ramsey blog. This is the Ramsey Show. Well

48:00

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uscca.com/Dave right now.

48:39

This is the Ramsey Show. I'm George Campbell

48:41

joined it by Jade Warshaw. Friendly reminder because

48:43

we just went out during the break to

48:45

the lobby and met some wonderful people from

48:47

all over the country, you can come visit

48:49

us and watch the show live. If that's

48:51

your form of entertainment is to watch people

48:53

through glass at a desk and do

48:55

a show that you could listen to on podcast, we'd love to have

48:58

you and people travel from all over just

49:00

to hang out with us. We got two birthdays in

49:02

the crowd today Jade. This is how they wanted to

49:04

celebrate. And George gives out hugs to every

49:06

single person. Well I joke that

49:08

if you hug me I'll break. Like I'm that

49:11

weak and sensitive. So be careful.

49:13

I go down easy. Well

49:15

Jade we both love food.

49:17

We do. And we both talk about money and

49:19

so we thought what if we did a fun

49:22

little segment on this show called

49:24

Tacky or Hacky. Yes. This is where

49:26

I throw out something that people do

49:28

maybe that we've done and

49:30

you got to give your take if it's

49:32

a if it's tacky or if it's kind

49:34

of a money hack. I'm ready. So this

49:36

is restaurant edition today. Restaurant edition. You ready

49:38

for this? Okay. You guys at home if

49:40

you're listening wherever and you're with someone or

49:42

you want to talk to yourself you

49:45

let us know. Is this tacky

49:47

or hacky? Taking extra stuff from

49:49

restaurants for your house. Napkins, condiments,

49:51

plastic utensils. What do you think?

49:54

I'm going to mostly go with tacky.

49:56

I think there's a line

49:59

here. All right. Uh, were

50:01

they given to me? Yes. Or

50:03

am I just grabbing a whole handful of condiments

50:06

for the road? Right. I was at Chipotle

50:08

yesterday. I'm not taking I only

50:10

needed one fork. I'm not taking five because they

50:12

have they have the nice plastic forks

50:14

I will say Chipotle's utensil game on

50:16

point. It's sturdy, right? And I didn't

50:18

take I will say sometimes

50:20

I take a few extra napkins for

50:23

the car not for my home Yeah,

50:26

but i'm willing to admit that that's

50:28

a tacky I

50:30

don't like Chipotle's napkins. I'm gonna be honest like

50:32

the brown cardboardy napkins the brown we can do

50:34

better No, we can do better for a car

50:37

situation So i'm gonna go I'm

50:39

gonna go mostly tacky and it's hacky if it

50:41

was given to you or if you're taking a

50:43

reasonable amount Now I will save

50:45

the chopsticks From I do

50:47

know because they usually give you maybe one extra one and it's

50:49

nice to keep it in the drawer Just in case one

50:52

time you order and they forget That's

50:54

fair. That's that's that's hacky. We've got

50:56

that All right. Next up

50:58

ordering your drink with no ice. I'm

51:01

assuming in order to get more liquid I'm gonna go

51:03

hacky on that one. Hacky been there done that that's

51:05

not tacky at all And it avoids it

51:07

from just getting super watered down if it takes you

51:09

a while to drink it Now this depends on the

51:11

kind of drink. I mean some people I feel

51:14

like with a fountain drink You need some ice

51:16

in there. It's just strange without it and you

51:18

can always refill it. You know what I mean?

51:20

So it depends on the beverage. Well, let's add

51:22

an outlier here because people go

51:24

to extremes I might know someone in

51:26

my family who would save

51:28

a cup And bring it

51:31

in the next day for a free refill and get a

51:33

free refill that to me is tacky That's

51:35

beyond the the moral line for

51:38

me personally. So are you calling my family

51:40

members tacky? I'm not gonna report them I'm

51:43

just saying if I did that my wife

51:45

would be like really oh most definitely there'd

51:47

be some eye rolls Yeah, that's extended family

51:50

by the way, not san warshaw. Okay next

51:52

up kids meals for older kids slash teenagers

51:55

I'm going I'm going hacky. I'm

51:57

gonna go hacky because I

51:59

mean Smaller portion, cheaper price.

52:02

Probably the correct portion. What about if the

52:04

menu says like 12 and below? Oh,

52:07

it doesn't matter. Even if the menu says 12

52:09

or below, like here's

52:11

the thing. I still, to this day, I'll

52:13

go to Chick-fil-A and I'll order a kid's meal. And

52:17

not one time have they been like, sir, is there children

52:19

in the vehicle with you? But I don't

52:21

think it says on their menu. But if you go

52:23

to a restaurant, it'll say on the kid's menu like

52:25

12 and below. Now the fancier the restaurant,

52:27

the less likely I am to do this. You know what I mean? But if

52:29

I don't need a, I mean some of these portions, Jade, you've seen them. Gargantu.

52:33

I'm like, yo, we're eating for three over here. You

52:35

know, I got a little physique. I don't need that

52:37

much. Wow. Okay. So I

52:39

think it's hacky in most situations. But again, if

52:42

they say, hey, kids only, I go, all right,

52:44

no big deal. I'm not gonna put up

52:46

a stink about it. What about,

52:48

okay, again, sorry. I'm going

52:50

rogue a little bit, James, because it's making me think

52:52

of like trifling things that I've

52:54

seen people do who shall remain nameless. All

52:57

right, you go to the Mexican restaurant, they bring chips to the

52:59

table that are usually free. It comes with a meal. Yep. And

53:02

you're really done with the chips. But you're

53:04

like, I'll order another basket and I'll take

53:06

those home. Oh, the

53:09

to go chips scenario. All

53:12

right, I'll go hacky on that one. Is that hacky? I

53:15

think I would say tacky on that. I

53:18

don't, I wouldn't do it just to take it to go.

53:20

I would get the chips and be like, all right, I'm

53:22

really done with the chips here. My

53:25

entrees here and these chips are gonna go to waste. You know,

53:27

they're gonna throw them out. One would hope. So you're saying it's

53:29

the motivation behind it. If you didn't know

53:31

there was gonna be leftovers, you take them. But you

53:33

don't order it knowing you're not gonna eat them. They don't

53:35

recycle the chips off the table, do they? Yes, they

53:37

do. Yes. I got trust issues now. I

53:39

used to work on a cruise ship. Let me throw this out here.

53:41

I used to work on a cruise ship. You know, you go out

53:44

at any restaurant, they give you a basket

53:46

of bread. Yeah. And

53:49

you know, you rifle through it to pick the piece of bread you

53:51

want. They will 100% save

53:53

that bread and put it in somebody else's basket.

53:56

You're welcome. No. It's gross,

53:58

I know. cruise ship? I'm

54:01

going to go with that's an everyday life, George. I

54:03

feel like the restaurants that I frequent, they

54:05

wouldn't do that. They're too classy. And there's

54:07

OSHA violations, there's too many issues that could

54:10

go wrong. Sam and I went to a

54:12

restaurant a couple of weeks ago and it

54:14

was fairly nice. And when they

54:16

brought out the bread basket, I could tell it had

54:18

a lot of crumbs in it. There was a piece

54:20

that looked like it had been broken off with a

54:22

lavash. I was like, I'm

54:25

not getting a good vibe about this bread basket. Well to be

54:27

fair, I told you guys, don't go to Applebee's after 10pm.

54:29

And you did it anyway. You did it

54:32

anyway. Well played, George Campbell. Okay, let's keep going

54:34

on this. Well played. All right, next up, splitting

54:36

meals, hacky or tacky? Okay,

54:38

I do this, so I think it's hacky. It's hacky.

54:41

Here's where it gets hacky and tacky.

54:44

Don't tell them you're going to split it because some restaurants-

54:46

They'll charge you for split plate. They'll charge you. So don't

54:48

tell them. Just eat it off each

54:50

other's plate. Yeah. Well, I like to

54:52

get an entree. My wife will get an entree and then we'll

54:55

kind of eat half and switch or something. Hacky. And

54:57

restaurants, I mean, we'll get fajitas at one of

54:59

these local Mexican places. It's tons of food enough,

55:01

fajita for one. And my wife and I

55:03

split that and we have a great time. So I don't think

55:05

there's anything wrong with that. I'm not doing anything

55:08

immoral. Okay, but what about this? Alcoholic

55:12

beverage, if you will, splitting

55:15

one of those. I

55:18

mean, that's strange. Because cocktails are expensive at

55:20

a restaurant. I'm

55:22

trying to think of, I wouldn't split a soda. Maybe

55:26

a glass. One thing I have done- Those

55:28

have free refills though, so you could split one. Yeah,

55:30

but then the server, that's tacky. That's tacky splitting

55:33

a soda so you get free refills and then

55:35

you each can have your fill of- Because

55:38

you're trying to avoid paying another three bucks for your soda. But

55:40

I think a cocktail is fine because those are wildly

55:42

expensive. There's no free refills on cocktails. Yeah, and some

55:45

people might not want to handle a full drink. Okay.

55:48

So that one's fair if it's alcoholic. If it's not, I

55:50

think it's a little tacky. A little tacky. All

55:52

right. Next up, ordering an

55:54

appetizer or dessert only. Hacky!

55:57

Yeah, I don't know what's wrong with that. Well

56:00

here's the thing again. So we'll have to skip the apps and

56:02

dessert and get the entree. That's what I do. Well

56:04

here's where the motivation part of it comes in.

56:06

Like what was your motivation going in? So

56:08

when you're getting out of debt and you're like I'm not going to spend a

56:11

lot of money and your friends are going

56:13

out but you're like I'm not going to go out and

56:15

spend money. I'll just go for the company. There's

56:18

always a friend that feels bad and it's like I

56:20

got yours, I'll get yours. So if you say yes and

56:22

you're like I'm just going to get the soup or I'll

56:24

just get the side salad.

56:27

And then you're dipping your little grubby hands

56:29

into those fries that we got. Oh hey.

56:32

There's another move. I think

56:34

if you're just honestly like I'm going

56:36

out, this is all I want, definitely

56:38

hacky. But if

56:40

you have a motivation. You know what's tacky though and

56:43

I've been in this situation is people go well we'll

56:45

just split it all evenly. It'll be easier. And

56:48

then I'm like whoa whoa I didn't get the appetizer

56:50

or the three cocktails. I got water and

56:52

one entree. I'm like hold up. We're not splitting

56:54

this evenly. I know that's right. I'm like. Hacky

56:57

to be the person who says let's just split it evenly when you got the most.

57:00

That's because it's always the Michael Jordans and the Lebronze

57:02

that say that and I'm over here the sixth man.

57:05

I may not make what they make. I'm mugsie bogs out

57:07

here. The

57:09

sixth man does not make what the point

57:11

guard, the starting point guard makes.

57:14

And so when you're out to dinner with your friends

57:16

you got to play, you got to think about that

57:18

before you say hey let's just all split it and

57:20

you go and order the filet mignon George like

57:22

you did. I'm just kidding. That's fair.

57:24

The last one, getting soda

57:26

at the soda fountain when you didn't

57:28

order a soda. You get the cup

57:30

of water. That's legit

57:32

stealing. That's tacky. That's tacky. But

57:35

you know what I have done is right next

57:37

to the water there's a soda button. There's

57:39

no syrup. It's just soda water. Alright.

57:42

I'll do that with a cup of water. It's still water.

57:44

Listen. No syrup. I

57:46

didn't cost the company any money with their paying for syrup.

57:48

For the OGs? You already know.

57:50

You order water and lemons. And

57:52

go ahead and put your own mic right there. I

57:54

make my own little LaCroix. Like Chipotle, get the soda

57:56

water, I squeeze a lime in there. You got a

57:58

lime LaCroix for free. This is

58:00

Chipotle Hack. Listen, I think

58:03

that it's tacky, but... Thank

58:06

you, Jade. This has been tacky or hacky restaurant

58:09

edition. Hope you guys enjoyed that and budget for

58:11

it, whether it is tacky or hacky. You're

58:19

listening to the Ramsey Show. I'm George Campbell,

58:21

joined by Jade Warshaw. The phone number to

58:23

call is 888-825-5225. David

58:28

is up next in Burlington, Vermont. David, welcome to

58:30

the show. Hey, guys. Thank

58:32

you so much for having me. Sure. How can we

58:34

help today? So I

58:36

have a small problem, it seems like, compared to

58:38

some of the other callers, but I

58:41

am getting... I run a small autoclast business here

58:43

in Vermont. It is

58:45

new. It's about seven months old, and

58:48

I'm looking to... I get a little bit of money

58:50

back in taxes, or I'm getting money back, about $2,000

58:52

worth. The

58:54

problem is, is I do have some credit card debt.

58:57

I have about $2,800 in credit card debt. And

59:02

so I'm assuming what you're going to tell me is to just

59:04

pay the credit card debt, but I do have an opportunity to

59:07

invest the money into the

59:10

business for the calibration systems that I need

59:12

to do or need to use in the

59:14

industry. So I just

59:16

don't know if I should just pay off the debt

59:18

immediately or if I should invest it into the business.

59:23

Well, you're right. You may not like our answer, but do

59:25

you have $800 in savings as well in the cash in

59:27

the bank? I don't. Okay.

59:32

I've pretty much thrown every bit of money I have into

59:34

the business at this point. Well,

59:37

to me, that's the more glaring problem, is that

59:39

you are on thin ice already,

59:41

my friend, as far as this business

59:43

and your cash flow and your personal

59:45

financial world. And so before you put

59:47

another dime into this business, we've got

59:49

to become debt-free and then cash flow

59:51

once we're debt-free, once we have an

59:53

emergency fund to then grow this business.

59:55

How long can you get by without

59:57

the calibration systems? Well,

1:00:00

that's the thing. So right now, I'm subbing

1:00:02

the calibrations out to other shops.

1:00:05

I'm not essentially losing money, but it's money I could

1:00:07

be making. Right now, I'm getting

1:00:09

by. The issue isn't getting

1:00:11

by. It's just making more profit,

1:00:14

seeing the potential to make more profit. Are you working

1:00:17

full-time at this business? I

1:00:19

am, yes. Okay. Are you able to take

1:00:21

on a side hustle while it gets off the ground

1:00:23

to bring in some more income right now? What is

1:00:25

this bringing in for you, Net? I'm

1:00:28

not saying it's – to be completely

1:00:30

honest, I haven't even tracked it. I know

1:00:33

I'm making enough to pay the bills, and

1:00:35

that's it. Okay. Is this

1:00:37

just you? It

1:00:39

is, yes. Okay. Okay.

1:00:42

Okay. You said seven months old. Are you

1:00:44

putting a side since you're not really taking inventory?

1:00:47

Are you putting a side for a court release and

1:00:49

for taxes? Yes.

1:00:51

So the taxes are handled. I actually just

1:00:53

had a huge scare with the state, and

1:00:56

they thought I owed $26,000,

1:00:58

and I was able to

1:01:00

resolve that luckily. But yes, right now, the taxes

1:01:03

aren't the issue. Okay, good. Listen,

1:01:06

I'm with George. I would,

1:01:08

A, start getting a handle on what you are

1:01:11

making, because you've got to understand

1:01:13

if your business is doing well and what it's doing,

1:01:15

because then you might look at the numbers and go,

1:01:18

I should be able to pay for this out of

1:01:20

the business and not my tax return,

1:01:22

you know. But I do think that you should pay out

1:01:24

this credit card debt first. Okay.

1:01:27

Even though the credit card debt is

1:01:29

more personal versus the business – Everything's

1:01:31

personal, man. It's always personal. Guess who

1:01:33

signed those business documents, David?

1:01:36

Gotcha. Okay. There's really no such thing as

1:01:38

business. It's all in your name, and

1:01:41

therefore you owe it all. And so I want

1:01:43

you to have as little risk as possible, run

1:01:45

this business debt-free. I love that you're going to

1:01:47

cash flow these systems, but you'll get there once

1:01:50

we have more financial footing and foundation underneath

1:01:52

us. Good. Gotcha. Okay.

1:01:54

Thank you so much. Yeah. I would pause

1:01:56

on this even though you could be making

1:01:58

money. opportunity to do

1:02:00

something that puts you at risk is

1:02:02

not an opportunity. And

1:02:05

whether that's going into debt or investing in the

1:02:07

business when you have debt, it's

1:02:09

all the same. And you've got to

1:02:11

get that emergency fund in place ASAP.

1:02:13

But hey, I'm glad you get

1:02:15

a refund instead of owing $26,000. That

1:02:18

is quite the scare. And I know

1:02:20

it's tax season. A lot of people out there, Jade,

1:02:22

are now filing and getting their documents together. I want

1:02:25

to let them know we have

1:02:27

a great free resource at ramsysolutions.com/tax.

1:02:30

And on that site, you'll see my pretty

1:02:32

face along with Dave's extra pretty face. And

1:02:35

we'll help you figure out number one, is it

1:02:37

worth filing with a pro or can you do

1:02:40

it on your own with tax software? We also

1:02:42

have some really great free resources. I use these

1:02:44

every year. I go to the site and I

1:02:46

download the personal checklist for taxes. And

1:02:49

it has every single document I could need. I love

1:02:51

that. So I go through that and I pull it

1:02:53

online, log into the site and I can knock it

1:02:55

out in a real short amount

1:02:57

of time. There's also a really great beginner's guide

1:02:59

to taxes that is super helpful. How do income

1:03:01

taxes work? What do you need to know for

1:03:03

the 2024 tax season? How

1:03:06

to file? What about deductions and credits? How

1:03:08

to choose a tax advisor? Filing an extension?

1:03:10

The truth about tax refunds? It's all right

1:03:12

there. I can't believe it's free, Jade. And

1:03:15

so go to ramsysolutions.com/tax to get all of

1:03:17

those resources. I promise you, it's going to

1:03:19

give you, it's going to help you burn

1:03:21

less brain calories this tax season. That's so

1:03:23

true. Have you filed yet? I

1:03:26

got my appointment to file and I've got all

1:03:28

my documents ready in, on my

1:03:30

computer, in a folder. Everything's labeled perfectly.

1:03:33

My wife is like, how do you know all this? I'm

1:03:35

like, I don't know. I'm just a giant nurse. There was

1:03:37

a glimmer in your eye just now when you were talking

1:03:39

about it. I'm not going to lie, like spending three hours

1:03:42

on a Saturday doing that was somehow invigorating. It

1:03:44

was like cleaning out a closet. You know what I

1:03:46

mean? Just feels good once we're done. Okay, satisfaction. I

1:03:48

like that. All right, there we go. We're moving on

1:03:51

to Philadelphia. Matt joins us there. What's going on, Matt?

1:03:54

Hi, how you guys doing? Great. How are you? Good.

1:03:58

So I I just started listening to

1:04:01

the program about six months ago or so.

1:04:03

Um, and I have a general question on

1:04:05

finances and then another question on, uh,

1:04:07

potentially getting married. Um, uh, so

1:04:11

I'm following the program, not perfectly,

1:04:13

but I'm trying, uh, I have down about $3,000

1:04:15

in credit card debt. Um, my

1:04:19

biggest debt is actually I have to

1:04:21

pay back. I'm visually impaired and I have to

1:04:23

pay back social security. I'm

1:04:25

substantial amount about $80,000. Um, but

1:04:28

that debt is actually interest free. Um,

1:04:31

so I've been just paying the

1:04:33

agreed payment basically and, and attacking,

1:04:35

uh, my credit card and

1:04:38

my mortgage, which is down to about, uh, $73,000. Uh, kind of

1:04:40

in paying them both. I

1:04:43

know that's not the exact way to do it. I'm just

1:04:45

about to get rid of the credit card debt. But my

1:04:47

main question was with all that, um, I'm

1:04:51

still investing through work, uh, 6% because

1:04:54

they match, uh, 6%.

1:04:56

Should I be stopping that

1:04:58

completely until the debt is

1:05:00

gone? Yeah. Um, you know,

1:05:02

you said you listen to what we

1:05:05

teach and you're not doing it perfectly. I don't,

1:05:07

I don't think you're really doing it at all in

1:05:09

our way. I think that you have in your mind

1:05:12

that you want to pay down your debt, but the

1:05:14

way that we would teach to do this is very

1:05:16

different than what you're doing that. So I'd

1:05:18

like to kind of call out the major differences, but I

1:05:20

think you know what they are. Yeah.

1:05:23

What's your income? I guess it just has

1:05:25

a, uh, 64 K. Okay.

1:05:28

I mean, right now you're paying off your mortgage

1:05:31

along with your other debts, which we would

1:05:33

tell you that's further on down the line.

1:05:35

Baby step one, you get a thousand dollars

1:05:37

saved first and then baby step two, you

1:05:39

pay off all your consumer debt, everything except

1:05:41

the mortgage. So you're really flip flopping it.

1:05:44

Um, do you have the thousand dollars saved

1:05:46

by the way? Yes.

1:05:48

How much do you have saved? Uh,

1:05:51

around 4,000. You can knock

1:05:54

out the credit card debt today. I want to call

1:05:56

out the fact that you're really not doing our plan

1:05:58

at all. Even a little bit. I

1:06:02

made concern was I have to have like a

1:06:04

some some housework done like a roof on the

1:06:06

garage Okay, like the save a little cash to

1:06:08

potentially pay the person to do it

1:06:11

in cash rather than okay So it's like a

1:06:13

thinking fun tap there. That's my

1:06:15

that's my safety. No, I guess at this point That's

1:06:17

the reason I haven't how urgent is that roof over

1:06:19

the garage? Is that like falling apart? No, no

1:06:22

It's not falling apart. It's got a slowly.

1:06:25

I mean if you had to say what's the what's the timeline

1:06:27

on this thing? I

1:06:30

need to get it done. So, you know, it's kind of

1:06:32

waiting for the winner to get over probably next month or

1:06:34

two Okay, so okay. What's it gonna cost? That's

1:06:39

a good question, I'm not really sure I'm thinking somewhere on 1500

1:06:41

to 2000, okay Okay,

1:06:44

so you've got a little extra there find out exactly

1:06:46

what it is because this is money all this money

1:06:48

when you just kind Of keep it around and hoards

1:06:50

not to say that you have lots of it But

1:06:52

it's money that could could be going to work for

1:06:54

you So if this thing is only gonna cost fifteen

1:06:56

hundred dollars or eleven hundred dollars, you've got another Third

1:06:59

hundred dollars here that could be helping you

1:07:01

right now. So let's get a clear estimate

1:07:03

on that I want you to stop investing.

1:07:05

I understand that you're getting six

1:07:08

percent But that's a lot of money that could be

1:07:10

back in your pocket for you to be paying off

1:07:12

these credit cards and Really paying

1:07:14

off this Social Security. I'm not sure you

1:07:17

probably don't have to go into it But I'm not

1:07:19

sure how that happened But eighty thousand dollars is a lot

1:07:21

of money regardless of its interest rate It

1:07:23

is a weight on your body and I want you

1:07:25

to get that paid off So I want you to

1:07:27

stop on the mortgage wait until baby step six Which

1:07:30

is when you're supposed to do that and right now

1:07:32

I really just want you focused on paying off this

1:07:34

debt using the debt snowball and That's

1:07:37

how you're gonna do this. That's how we teach to do it.

1:07:39

So if you want to do our plan That's the

1:07:42

way it goes and freeing up that investment.

1:07:44

That's three thousand eight hundred forty bucks a

1:07:46

year That's twenty bucks a month That'll make

1:07:48

you feel some progress instead of doing 17

1:07:50

things at once without making any so we

1:07:52

hope you follow our plan All

1:07:54

the way man. That's the only way it works. This

1:07:56

is the Ramsey show Hey,

1:08:01

you've been listening to the show, now it's

1:08:03

time to start doing. No more excuses. Join

1:08:06

me and the rest of the Ramsey

1:08:08

Personalities for the Total Money Makeover Weekend

1:08:10

here in Nashville on May 10th and

1:08:12

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1:08:14

course in everything we teach about money

1:08:16

including budgeting, beating debt, investing,

1:08:18

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1:08:21

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1:08:23

all into action. It's game on baby!

1:08:25

Early bird tickets start at $99. So

1:08:28

don't wait. Go to www.ramzysolutions.com

1:08:31

slash weekend. Welcome

1:08:35

back to the Ramsey Show. I'm George Camel,

1:08:37

joined by Jade Wartell. Open phones

1:08:39

at 888-825-5225. And

1:08:43

while you're enjoying the show, if you could do

1:08:45

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1:09:01

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1:09:04

mom can get away with that. That's right. Like,

1:09:06

you're right mom, I'm sorry. It's kind of a radio show. There's

1:09:08

not like a looking at the camera. You know,

1:09:10

I'm not trying to be upset. You're just focused on

1:09:13

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1:09:15

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1:09:20

doing great. Thank you. You guys are the

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marketing plan and it's free to you. This is a free

1:09:24

show for you and we appreciate you being here. Bill

1:09:27

is in Boston up next. Bill what's going

1:09:29

on? Hi guys. Thanks

1:09:31

so much for taking my call. Sure. I'm

1:09:34

51 years old, single. I'm

1:09:37

a homeowner with $50,000 left in the mortgage. Value

1:09:42

of $750,000 in the house. Awesome.

1:09:46

I have a retirement of $157,000. I

1:09:50

started all over 12 years ago when

1:09:53

I got divorced. I've

1:09:55

got about saving. I've got $10,000 for savings.

1:09:59

No credit cards. I have no car payment

1:10:02

and I have a Vanguard Target Retirement of

1:10:04

the 2040 fund as well. You

1:10:08

said 240? 240,

1:10:11

yes. It's a target date

1:10:13

fund that goes until 2040. Oh,

1:10:15

2040. I'm sorry. I misunderstood you.

1:10:18

Okay. Okay. All right. What's

1:10:20

your question today? Should

1:10:23

I be doing anything else? The past

1:10:25

few years, I've put about $18,000 into

1:10:27

my 401k. I

1:10:32

just want to get ready. I'm working hard not

1:10:34

to have debt. I don't do much. Do

1:10:36

you have anything except the mortgage as far as debt?

1:10:40

No, sir. Great. And

1:10:42

so if you're following the Ramsey plan, this would put you at

1:10:44

– I know you found it, so let me lay it out

1:10:46

for you. Baby step one, $1,000 emergency fund,

1:10:48

you're through that. Baby step two, pay off

1:10:51

all consumer non-mortgage debt, you're through that. Baby

1:10:53

step three is three to six months of expenses. Do

1:10:55

you have that with the $10,000 or do you need

1:10:57

more than that? My

1:11:00

guess is more. If

1:11:03

you added up six months of your expenses to

1:11:05

run your house, is that going to

1:11:07

be – Yeah, I don't

1:11:09

have six months. Would that be closer to 20 or 25 for

1:11:12

you? Yeah,

1:11:14

it would be closer to 25, yeah. Okay,

1:11:17

so that's a good goal for you in the savings. And

1:11:23

then beyond that, once you have that

1:11:25

25 saved, then we can move on to investing 15%

1:11:27

of your income into retirement. How

1:11:29

much are you investing now percentage-wise? Okay,

1:11:35

so you could dial that back

1:11:37

to 15, and then whatever's left over, you can

1:11:39

throw out the mortgage and get that knocked out.

1:11:43

Yeah, I wasn't sure. I had a feeling you were going

1:11:46

to ask me to back it off a lot just to

1:11:48

bang out the mortgage. Well, you're 51. My

1:11:51

goal for you and I think your best

1:11:53

path to wealth and being secure in retirement

1:11:56

is to have no mortgage payment, no debt

1:11:58

whatsoever, and have that done. and S-Tag

1:12:00

building. And so that's going

1:12:02

to also decrease your biggest fixed

1:12:05

expense. What's your mortgage payment? It's

1:12:07

not much. It's just $500. Well, without

1:12:10

taxes, just mortgage allowance is $500. Okay.

1:12:13

Plus taxes and insurance. So you'll free up $500 once

1:12:15

you get rid of the mortgage, which will be helpful in retirement.

1:12:17

Okay. So

1:12:20

– and the good news is at over 50, you're going

1:12:23

to have some catch-up contributions. And so once

1:12:25

the mortgage is paid off, you can increase investing to 30,

1:12:27

40% of your income, be maxing out everything. Oh,

1:12:30

I didn't know that. So

1:12:33

you're able to contribute additional money

1:12:35

that I'm not able to at 34 years

1:12:37

old. But once you're over

1:12:39

50, you can contribute more to that 401k,

1:12:41

more to the IRA, and so that's going to

1:12:43

help you to build up that nest egg faster

1:12:46

as you race toward retirement. What can

1:12:49

you max out at your 401k if you want? Let

1:12:52

me see the 2024. They just upped it. Let

1:12:54

me check on that for you with

1:12:56

my handy-dandy laptop here. Here we go. Okay.

1:12:59

I am seeing – hmm.

1:13:05

Well, George looks for that. What kind – I'm

1:13:07

just kind of curious. What set you on this

1:13:09

path to start paying off

1:13:11

your mortgage and doing all of this? I see

1:13:14

on here that you're kind of new to Ramsey.

1:13:16

So was it just you realizing I want to

1:13:18

start over? I just

1:13:22

never liked debt. I got divorced.

1:13:26

I carried a lot of debt

1:13:28

after that. And the past, I'd

1:13:31

say four or five years has

1:13:33

been – it took me about

1:13:35

seven years to really finally get

1:13:37

out of it. And now I'm able to

1:13:39

do the 20% for my 401k. I want a future. I

1:13:41

don't want it. Well, you've got a

1:13:43

taste of the freedom on the other side, getting rid of

1:13:46

all that debt, too. Right.

1:13:48

And I don't – I mean, I

1:13:50

don't do any – I like to fish. I like to

1:13:53

hunt. I never put that money in my house. But

1:13:55

that's just a few thousand dollars a year. That's my thing.

1:13:57

Yeah, you don't sound like you're living a good life. a

1:14:00

crazy frivolous lifestyle here. You're doing a lot of

1:14:02

the right things. And the, I found the contribution

1:14:04

limit for 2024, it's 23,000 and then you get

1:14:06

to contribute an additional 7,500

1:14:11

on top of that. That's significant. So

1:14:13

that's pretty serious. That's, you're putting over

1:14:15

30K in that 401K as

1:14:18

you get in your later years working. What's your

1:14:20

income? Uh-huh.

1:14:22

Um, depending on overtime, I would say average

1:14:24

is about 85. Okay.

1:14:28

And we've got a great investment calculator on our

1:14:30

website that's free, Bill. You can jump on there,

1:14:32

ramsysolutions.com and you can start punching in these numbers

1:14:34

and going, all right, I have 157 saved right

1:14:36

now. If that

1:14:38

just grows and I keep contributing, you know, 500

1:14:41

bucks a month, a thousand bucks a month, you can

1:14:43

see exactly what you'd have over time. And I think

1:14:45

that will be an encouragement to you, uh,

1:14:47

to go, oh, okay, I'm going to be okay.

1:14:50

Another 10 years of compound growth and investing with

1:14:52

no house payment. You could have a pretty decent

1:14:54

little nest egg there. And I imagine you're going

1:14:56

to be able to work in your later years.

1:14:58

Do you have a goal in mind? I would

1:15:02

love to be 65. Okay. But

1:15:05

I, our social security, I went down to

1:15:07

the office, uh, two weeks ago and it's

1:15:09

67 for me. So if

1:15:11

that's it, that'll be it. But,

1:15:14

um, they told me 67 at

1:15:16

my age right now is the only one that would be

1:15:18

able to retire. Well, I just

1:15:20

put a couple numbers for you, Bill. Uh,

1:15:22

you're 51 at 65. If you

1:15:24

keep contributing to this one 57 with 10% return on

1:15:26

average, you'd

1:15:29

have 1.3 million sitting in that nest egg. Is

1:15:32

that okay? What is that with what

1:15:35

is, what is it that I'm contributing every

1:15:37

year to make that happen? That's at 1875

1:15:39

a month. I

1:15:41

just put on a random number in there.

1:15:43

That's 22 five. So that's even below the

1:15:46

current limit without your catch up contributions. So

1:15:49

it's 22 five for the,

1:15:52

for the now until 60. Now

1:15:54

until now until 65. And

1:15:57

now until 65, 22 five. That

1:16:00

would be how much 1.1 1.3 million my friend So

1:16:05

start dreaming a lot can happen in 14 years with

1:16:07

a little bit of consistency and you keep stay on

1:16:09

this plan and you Get rid of that mortgage But

1:16:12

again You got to do these things in an order because

1:16:14

a lot of people bill what they do is they try to do 17 things at

1:16:16

Once and the beauty of the baby steps is

1:16:19

it's focused and so while while you're going to

1:16:21

be investing 15 While paying

1:16:23

off the mortgage as soon as that thing's knocked out you

1:16:26

you can weigh up that investment And

1:16:29

you remember you also freed up 500 bucks from that

1:16:31

mortgage Right. Would you

1:16:33

suggest that I just Stop my

1:16:35

401k for two years pay off my mortgage and

1:16:37

then get back on it. No, I just that's

1:16:40

two years I'll compound growth you'd lose. Um, the

1:16:42

one thing that I would do you may want

1:16:44

to pause temporarily to get that emergency fund in

1:16:46

place Because getting 20 of

1:16:48

your income back to save up that 25k That's

1:16:51

going to protect you because a lot of times what happens bill

1:16:53

is people have one of these emergencies Later

1:16:55

in life and it might be a 12 000 emergency. You don't have

1:16:57

12 000 So

1:17:00

what do you do? You go into debt moving

1:17:03

you backwards and it halts your

1:17:05

wealth building journey Okay,

1:17:07

and that's baby steps three to

1:17:09

have six months exactly All

1:17:12

right, and bill i'm going to send you

1:17:14

a copy of my new book breaking free from broke

1:17:16

It'll walk you through all these baby steps. It'll talk

1:17:18

about wealth. It'll talk about investing In

1:17:21

mortgages all of that stuff is in there and I hope

1:17:23

it gives you some Confidence for

1:17:25

your retirement, but I feel good just looking

1:17:27

at a calculator. Absolutely. Sometimes the numbers is

1:17:29

exactly what you need It is, you

1:17:31

know, I think about that statistic It says 52

1:17:34

percent of americans feel that they're not prepared for

1:17:36

retirement or that they don't have enough food And

1:17:39

I sometimes think that that that fear and

1:17:41

that anxiety could be remedied if people just

1:17:44

Looked at the actual numbers instead of assuming they

1:17:46

don't have it or assuming they can't do it

1:17:48

When you start plugging number real numbers into that

1:17:51

calculator It can give you peace and it can

1:17:53

help you see what you need to be doing

1:17:55

So that you can have the retirement that you want.

1:17:57

So That's a good word knowledge

1:17:59

is found And listen, it's not too

1:18:01

late for you America. If you're 51 and you

1:18:03

only have a hundred grand in retirement, it's not

1:18:06

too late Look at Bill. He's already about a

1:18:08

millionaire and he's gonna be doing just fine 10-15

1:18:11

years from now when he retires. That puts this

1:18:13

hour of the Ramsey Show in the books Live

1:18:19

from the headquarters of Ramsey Solutions It's

1:18:22

the Ramsey Show where we help people

1:18:24

build wealth, do work that they love

1:18:26

and create amazing relationships I'm

1:18:28

George Campbell joined by Jade Warshaw this hour.

1:18:31

The number to call is triple eight eight

1:18:33

two five five 225

1:18:35

don't wear it out you call in and we'll

1:18:37

talk about your life and your money Elizabeth

1:18:40

kicks us off in Atlanta, Georgia, Elizabeth.

1:18:42

How can we help today? Hey,

1:18:45

thank you guys so much for answering. Absolutely.

1:18:48

Well Austin answered we he just then patched

1:18:50

you through to us So you can thank

1:18:52

us that he's a good man Thank

1:18:54

you Austin. Thank you for having me on so

1:18:58

I'm currently a college student and I

1:19:00

am Getting

1:19:02

all of my college paid for by a

1:19:05

family member right now and I'm renting again

1:19:07

through that family member and I

1:19:09

was I'm in school for interior design

1:19:11

and I do want to get into real estate

1:19:13

after I graduate so I'm

1:19:16

trying to think of a way that I

1:19:18

can Get

1:19:20

set in the right foot after I graduate

1:19:22

per se so I would like to Propose

1:19:26

the idea of buying a house to this

1:19:28

family member and then possibly buying it from

1:19:30

them after I graduate Oh, I just want

1:19:33

to know if that's a good idea. Hold

1:19:35

on they buy it for you They

1:19:37

buy it. I live in it

1:19:40

until I graduate and then once I start

1:19:42

making a steady income buy it from them

1:19:44

That is a tall order Elizabeth

1:19:47

it is it is it is it is

1:19:49

but with the rent I am paying right

1:19:51

now buying a house

1:19:54

would be cheaper and But

1:19:57

you're not buying a hold on I'm

1:19:59

sorry I don't mean any

1:20:01

harm. So you

1:20:04

said it's the same family member. So the same

1:20:06

family member that is allowing

1:20:08

like paying your rent now and paying your way to

1:20:10

college, you mean to tell me you're gonna

1:20:12

go to them and say, hey, why don't you also buy a

1:20:14

house for me to live in? And then

1:20:17

the assumption is that you'll buy

1:20:19

it from them, because

1:20:22

you just get to decide when they're gonna sell

1:20:24

their house and who they're gonna sell it to. Well,

1:20:27

this, I mean, this is the proposal.

1:20:30

I know. Why not just you get yourself

1:20:32

in a position to buy a house? Why

1:20:34

do they have to be involved? Because

1:20:38

straight out of college, I don't have any. But you

1:20:40

don't have to be able to buy a house straight

1:20:42

out of college. You

1:20:45

don't have to be. I'm just trying to set

1:20:48

myself up in the right way. Yes, but you're

1:20:50

not the one setting yourself up. You're trying to

1:20:52

have somebody else prop you

1:20:54

up. And what does well for us as adults

1:20:56

is when we form and craft our

1:20:58

way through life financially. Listen, I don't

1:21:00

have to set you up. You're going

1:21:02

to college debt free. Right. That's great.

1:21:05

Once you graduate, listen, buying

1:21:08

a house is not just kind of like a

1:21:10

willy nilly thing. Hey, why don't you buy this

1:21:12

house for me? I'll live in it. And then

1:21:14

when I'm good and ready, you can sell it

1:21:16

to me. That's I don't think you understand kind

1:21:18

of how how much you're inserting yourself

1:21:20

into that person's life and

1:21:23

deciding the timeline on their financial investment.

1:21:27

And I get that you don't realize that. But

1:21:29

what George and I are trying to get at is you you don't

1:21:32

have to. We

1:21:34

all have this checklist in our mind of I

1:21:36

go to school, I get my degree, I get my big

1:21:38

girl job, I get my car, I get my house, I

1:21:40

get married, I have my kid. And it's like we're trying

1:21:42

to check these things off the list to tell ourselves that

1:21:44

that's what makes us successful. And it

1:21:47

doesn't have to go that quickly. The fact

1:21:49

that you're in school without student loans, that

1:21:51

is a major win. The fact that you

1:21:53

are going to graduate without student loans, major

1:21:55

win. And the fact that you are going

1:21:57

to get a job in your field, that's

1:21:59

been one. And then you're going to

1:22:01

be able to sustain rent and understand what

1:22:03

it just feels like to have that responsibility

1:22:05

because I don't mean any harm but you

1:22:07

haven't had to assume any financial responsibility yet.

1:22:09

So this idea that you're with what? I

1:22:13

did live by myself for two years

1:22:15

with no financial stability from anybody else.

1:22:17

And then once I decided to go

1:22:20

to school then I was given the

1:22:22

opportunity to have my life paid

1:22:24

for. But I did rent a place by

1:22:26

myself 100% on my own for two years before I

1:22:28

came to school. I'm glad you did that. I

1:22:30

think that you should do that again when you

1:22:32

come out now with this, this is the job

1:22:34

I want. I'm in the career field I want. Pick

1:22:38

a place in town where you want to live. There

1:22:40

is a big part to that having the three

1:22:42

to six months saved up and just walking through

1:22:44

this and being you Elizabeth and standing on your

1:22:47

own two feet. In no

1:22:49

world would I think, would I say that it's

1:22:51

a good idea to say, who is

1:22:54

the family member by the way? It's

1:22:57

a grandparent. No way would

1:22:59

I say grandma grandpa, will you buy a

1:23:01

house worth X

1:23:03

amount of dollars and

1:23:05

maybe the renter paying full rent and

1:23:08

because here's the thing worse, I'm just assuming

1:23:11

are you renting at cost or are they charging you

1:23:13

a real rent where they're able to make some money

1:23:16

on this investment? That's

1:23:18

something I would have to talk about with the

1:23:21

grandparent. That's a big deal. So for you to

1:23:23

even make the assumption, listen, I'll just rent

1:23:25

at cost. You won't make

1:23:27

any money on the renter

1:23:30

and whatever it appreciates whenever I'm ready,

1:23:32

I'll buy it because they might be

1:23:34

ready. They might want to hold the

1:23:36

property longer. What if that's the case? They're like, listen,

1:23:38

the market's not great right now. We understand that you

1:23:40

want to buy it but it's not great for us.

1:23:43

There's so many factors and volatilities there that

1:23:45

have the ability to make the

1:23:48

relationship not the best that it can be. How

1:23:52

many more years do you have until you graduate? I've

1:23:55

just graduated within two years. Okay. So

1:23:58

you graduate with an interior design degree. You said you wanted to go. into

1:24:00

real estate as in be a real estate agent? No,

1:24:03

just I want to own property. Okay.

1:24:06

So you just want to be a homeowner? But

1:24:10

I also want to be able to

1:24:12

own other properties. Like lots of properties.

1:24:14

Like print out. Okay. You want

1:24:16

to go full monopoly here, all right? Yes. And is

1:24:19

the goal to be working full-time in interior design? Yes.

1:24:22

And so you'd start off working

1:24:24

for an interior designer, I imagine?

1:24:26

Yes. And then you'd work your way

1:24:28

up to maybe starting your own interior design company one day? That

1:24:31

is the hope. Okay. What's

1:24:33

starting salary? Like when you come out of college, what

1:24:35

does an interior designer in

1:24:38

your area earn? It really just depends. I don't plan

1:24:40

on staying in the area, but it can start anywhere

1:24:42

from 50K a year to

1:24:44

maybe Okay.

1:24:48

50 to 80. So let's say 65. So

1:24:52

you come out, you're making 65. You've got no

1:24:54

debts. Tell me

1:24:56

more about your personal financial situation. About

1:25:00

my financial situation? Yeah.

1:25:04

I have a paid off car. I have $2,000 of my own

1:25:06

separate money. I've

1:25:08

been doing commissions like little side

1:25:10

hustles and saving that on my

1:25:13

own. So I've got $2,000 saved up of my own

1:25:15

personal money and it's working its way up right now.

1:25:17

Okay. And what's your rent right now? Do you pay rent? My

1:25:20

rent right now is – my grandparent does. It's

1:25:22

$2,500 a month. Well, you

1:25:24

just said the mortgage is cheaper than rent. If

1:25:28

I was to get a house that was – or this

1:25:31

is all very hypothetical, but if there was to be

1:25:33

a house that was bought, then

1:25:35

that is assuming that you're paying it at cost,

1:25:37

that you're not going to – That's

1:25:39

my worry is there's a lot of assumptions here.

1:25:41

And one is that renting is just – I

1:25:43

might as well get a mortgage. $2,000 in rent,

1:25:45

$2,000 in mortgage. It

1:25:48

doesn't work like that because there's property taxes,

1:25:50

there's insurance, there's maintenance, there's all the surprise

1:25:52

repairs. And you have $2,000 to your name. I'd

1:25:56

be scared out of my mind if I had two

1:25:58

grand and I was a homeowner. Well,

1:26:00

she's gonna live in the parents house until she's ready.

1:26:02

She's gonna ask the grandparents to buy that. I would

1:26:04

work your tail off, get a down payment, and

1:26:07

work on just continuing to stack up cash.

1:26:09

And when you're ready to be a homeowner,

1:26:11

you'll be a homeowner. But I would not

1:26:13

try to leapfrog this and shortcut your way

1:26:15

there and ruin relationships over it. Your

1:26:17

grandma has done enough. This is such

1:26:19

a blessing, and I would let that

1:26:21

be your setup for your future. And

1:26:24

grandma, if you're listening, don't do this deal. Because

1:26:26

you might be listening to granny

1:26:29

and grandpappy, don't do this deal. Not a

1:26:32

good deal. This is the Ramsey Show. Hey

1:26:37

guys, are you ready for the secret

1:26:39

to help you reach those money goals that

1:26:42

you've been dreaming about? It's simple. You gotta

1:26:44

get on a budget. With our budgeting app,

1:26:46

Every Dollar, you'll get intentional with your money

1:26:48

and build the habits that will make those

1:26:50

dreams a reality. And we'll be with you

1:26:53

every step of the way. From your first

1:26:55

budget to that retirement home on the beach,

1:26:57

download Every Dollar for free on the

1:26:59

App Store or Google Play. Remember, today,

1:27:02

download Every Dollar for free on the

1:27:04

App Store or Google Play today.

1:27:09

Welcome back to The Ramsey Show. I'm George

1:27:11

Campbell, joined by Jade Warshaw. Open phones at

1:27:13

888-825-5225. You call us. We'll talk about your

1:27:16

life and your money. Jade,

1:27:22

we were talking during the break and I thought this might

1:27:24

be good content to talk about on the show. What's that?

1:27:27

I got an email from the Social Security

1:27:29

Department with my yearly statement. Okay. So

1:27:32

I thought, alright, I'm a young buck, but I'll open this

1:27:34

up. Let me see what's inside this bad

1:27:36

boy. And it was

1:27:39

pretty interesting to see how much

1:27:41

money the government thinks I

1:27:43

will be given when I'm the right age of 62 or 70.

1:27:47

And I wanted to break this down because we get

1:27:49

this question frequently on the show. People are asking, hey,

1:27:51

when should I take Social Security? Will it even be

1:27:53

there for me? Note

1:27:55

on that part, There's actually a spot

1:27:57

in the document where they know people are considering.

1:28:00

The earned about their so I case. We

1:28:02

want to give you confidence and in your

1:28:04

future and retirement. So click this Pdf to

1:28:06

show how will be there for you. Will

1:28:09

hear was the the rousing had

1:28:11

confidence booster. We.

1:28:14

Know that I'm at least until twenty

1:28:16

Thirty four. The money will be. They're.

1:28:19

Gonna. Was like okay a twenty third is this

1:28:21

deaths ten years from now. To. Ten

1:28:23

years from now, they're not going to have

1:28:25

one hundred percent of the funding to Calhoun

1:28:27

I Target and we know this. And they

1:28:29

encourage me by saying, hey, listen, even if

1:28:31

nothing changes, will still be able to pay

1:28:33

eighty percent of each benefit. Do. So

1:28:36

that's fair because I paid into the things my whole

1:28:38

life for them to then. Discount.

1:28:40

It But keep in mind that the benefit was

1:28:43

only at. A portion of your exactly

1:28:45

So they're giving you eighty per cent of

1:28:47

what was already what was only a forty

1:28:49

percent benefit thing to begin with. So I

1:28:51

that we were at two point eight three

1:28:53

trillion in the fund in the trust funds

1:28:55

as a stance today and so that's why.

1:28:58

I. Encourage people, especially the younger generations,

1:29:00

do not rely on this. This.

1:29:03

Is icing on the cake. And I talked about this

1:29:05

in my new book Breaking Free From Broadgate. I tell

1:29:07

you what I wrote. Hit me. Research

1:29:09

from the said reveals twenty six percent

1:29:11

of non retired Americans have zero dollars

1:29:13

in any kind of retirement account. That

1:29:17

one. and for non retired people. This.

1:29:19

Is not great and in research and Ramsey solutions

1:29:21

forty eight percent have less than ten grand saved

1:29:23

in retirement. So. That's gonna get you about what?

1:29:25

Three months into retirement? If you're lucky. That.

1:29:28

So then people don't will jail. He solves

1:29:30

social Security. Ah well, we just showed you

1:29:32

how the best not be enough to get

1:29:34

by. Here's the real numbers. The average monthly

1:29:36

benefit and twenty twenty three from social security

1:29:38

was around seventeen hundred dollars a month. Trial.

1:29:41

Hang on it and will. You'll see why we

1:29:43

call Social and Security that I'm looking at Harvard

1:29:46

A line that seventeen hundred bucks a month and

1:29:48

by the way that's the average stayed. Some people

1:29:50

get less than nine hundred dollars a month. While.

1:29:54

and as here's the last that at fifty two

1:29:56

percent of workers have never sought to calculate how

1:29:58

much money they'll even need in retirement Half

1:30:00

of them are just yoloing and fingers crossed,

1:30:02

head in the sand. Yet

1:30:05

again, assuming that the government

1:30:07

will be there to handle

1:30:09

them financially. Listen, I will

1:30:12

tell anybody who will listen, if you

1:30:14

want to be thriving, you want to be thriving

1:30:18

during retirement years, not just surviving

1:30:20

and scratching by. And

1:30:22

then there's the scam, I'm going to just call

1:30:24

it a scam, where it's like, okay, if I

1:30:26

take Social Security early at 62, I'm only going

1:30:29

to get it this much, so I'm going to

1:30:31

wait until I'm fully aged, you know, where I

1:30:33

can get the full benefit. But if you wait

1:30:35

even longer, you get more money. This is

1:30:37

what we need to talk about. Yes. And

1:30:39

we do need to talk about it because- I did the math for you. I

1:30:41

just talked with the, I think it was

1:30:43

CNBC, I was talking to them and I was saying,

1:30:46

listen, if you don't have to, like if you're going

1:30:48

to work beyond 62, start taking

1:30:50

Social Security. You know

1:30:52

your boy is going to take that money out

1:30:54

the day it's available at 62. You invested. George, give

1:30:56

them the math. Okay. I

1:30:58

crunched the numbers for you because you know I'm a

1:31:00

nerd and I needed the numbers. So at age 62,

1:31:02

if I took out my benefit and I started getting

1:31:05

that every month and I invested that whole portion, let's

1:31:07

just say into a taxable brokerage account, not even in

1:31:09

retirement account, and let's assume 10% rate of return.

1:31:13

From age 62 to age 80, starting from $0

1:31:16

in this account, I would have $1.45 million. Oh,

1:31:19

wow. Just from extra

1:31:21

money that I took immediately when

1:31:23

I could take it, right? Now if

1:31:25

I wait till 70, of course people go, well George, you're

1:31:27

going to have a lot more money coming

1:31:30

in from Social Security every month. Right. Yeah,

1:31:32

but I also lost out on eight years of compound growth. So

1:31:35

even investing the larger amount for 10 years

1:31:38

from age 70 to age 80, at age 80, I now

1:31:41

have $921,000 in that account. Listen.

1:31:45

So that's a difference. Get this, because I

1:31:47

took Social Security as soon as I could

1:31:49

and invested it instead of waiting till 70,

1:31:51

it's a difference of over half a million

1:31:54

dollars. Nice to my net worth and

1:31:56

to what I can pass on to my grandchildren. What

1:31:59

I Want to say, because. Toward You made

1:32:01

that out perfectly. But. I

1:32:03

know there's still people who feel this

1:32:05

weird since a sneer. About.

1:32:08

Even. Considering that has that option, it's like, well,

1:32:10

as the government's given me that money, it's for

1:32:12

my retirement. I'm like number one. The government's not

1:32:14

giving you anything that was your money that you

1:32:16

paid in and you're only getting a portion of

1:32:18

it better than on a clear about that. The

1:32:20

government. Doesn't gift anything else redistributing all of

1:32:22

our money? Yes, you're not getting bad her

1:32:25

money, You. Gave. It to them. and they

1:32:27

invested it poorly at like a two point

1:32:29

two percent return. And now that's part of

1:32:31

the reason here. that we're not having enough

1:32:33

to fund everything. They're giving your money back

1:32:35

to you so you can take it and

1:32:37

do whatever you want with it. And what?

1:32:39

Georgia suggesting? what I'm suggesting is invested invested

1:32:41

in something that gets better than a two

1:32:43

point two percent return? Because at the end

1:32:46

of the day, they were only gonna provide

1:32:48

forty percent of the lifestyle you've been. Used

1:32:50

to living. And have allowed and

1:32:52

twenty. And Upper twenty thirty four,

1:32:54

That forty percent goes down. Eighty

1:32:56

percent. As has

1:32:58

not always the that article, this is why it's

1:33:01

called Social Security. Get This camera on Me Right

1:33:03

now. Here here's the deal America. Go.

1:33:05

Fund yourself. I. Said it.

1:33:08

Live. On the Ramsey show do not rely

1:33:10

on the government to take care of you

1:33:12

with is terrible plant especially those that are

1:33:14

younger says it may not even be around

1:33:16

and if it is it's gonna be pennies

1:33:18

compared to what your parents got and their

1:33:20

pensions and all these wonderful ways they were

1:33:22

able to. Does not say how retirement yet

1:33:24

it's gonna be on us shade And that's

1:33:27

why we tell people invest early. That's right

1:33:29

out of that get the emergency fund, get

1:33:31

to investing compound interest is your best friend.

1:33:33

And if you just do the simple saying

1:33:35

v the towards and so the hair that's

1:33:37

right. avoid the crypto. And us? Well my buddy

1:33:39

said I need to get an annuity and a whole

1:33:41

life insurance policy and I saw this rapper and it's

1:33:43

Tic Toc Video said this is with the wealthy do

1:33:46

just as s and your four One K is I

1:33:48

promise it's not a scam. Eighty

1:33:50

percent of the millionaires we studied. Said

1:33:52

the four. One K was a number one

1:33:54

vehicle. Yes, your retirement employ your plan is

1:33:56

so boring and yet it works. when you

1:33:58

this invest in overtime. Will fund overtime

1:34:01

the Snp five hundred. The overall stock

1:34:03

market has returned ten to twelve percent.

1:34:05

Since. It's Inception. That's the yeah, it's. Almost

1:34:08

like you boil it down to just these if. You

1:34:10

can in the course of your life span. you

1:34:12

know. We strike out when were eighteen twenty and

1:34:14

most. Of us are going to work until we're sixty

1:34:16

five, god willing. maybe even suddenly if you want to.

1:34:18

But if you can do three things, if you can,

1:34:21

just. Pay. Off your debt on live a debt free

1:34:23

lifestyle. If. You can't answer

1:34:25

that. You're entering retirement without consumer debt.

1:34:27

Then if you can, do one better and

1:34:29

in invest monthly regularly when the time comes.

1:34:31

So you've made it a habit of investing

1:34:33

and. It. It an intern retirement without him

1:34:36

mortage. Like three. Goals you

1:34:38

have and like that you can that the that

1:34:40

you are gold and and when you do that

1:34:42

George you don't need as much of a nest

1:34:44

egg If you can enter into retirement without consumer

1:34:46

debt and without mortgage debt. Suddenly.

1:34:49

This need to have all this giant

1:34:51

money or like, okay, I've Id eliminated.

1:34:54

So. Much of the payments. So much

1:34:56

of what's mean that that that you needed

1:34:58

before that you don't need to have. You.

1:35:01

Know that when you decrease your risk,

1:35:03

you increase your piece. Esa is that

1:35:06

simple. And so when you do that

1:35:08

and luckily for my wife and I we decided

1:35:10

do that early isn't without what would be

1:35:12

like in our thirties them no mortgage payment to

1:35:14

be investing for future. Now bring in our daughter

1:35:16

into this world. Says a different way to

1:35:19

live. We're not as worried about inflation and what if there's

1:35:21

a crash in one of the panda. We'll

1:35:23

just get to live our life with peace. That's

1:35:25

why your now payments and that's what I want

1:35:27

for everyone out there and investing consistently. Ever one's

1:35:29

arguing about net worth and what's right, your home

1:35:32

equity. I'm going. Listen, I'm not touching this money.

1:35:34

Then. Finally got margin in our day to

1:35:36

day life until I'm sixty two and tap

1:35:38

into social security than an old investment accounts

1:35:41

and lord willing, we won't need much of

1:35:43

it. Yeah, what we're saying is a good

1:35:45

man leaves an inheritance to his children's children.

1:35:48

And you can't do that is social

1:35:50

Security. Was your only. Out.

1:35:53

That's it. Like. Use. You

1:35:55

just stop in Said okay, I'm done making money.

1:35:57

I had no assets and Social Security is there.

1:36:00

The you can't meet anybody The Anything A

1:36:02

Do not rely on your kids. We'd take

1:36:04

enough calls in the shower. Relationships are destroyed

1:36:06

because parents are lying on the kids. The

1:36:08

kids are lying on the parents. They didn't

1:36:10

communicate, they didn't invest for tyrant. And.

1:36:12

A cone of the Sixty Five, The weirdness, and save

1:36:15

what we do, get a time machine or me. There's

1:36:17

now a lot you can do. You can. Get out

1:36:19

of debt for folks, him break the cycle

1:36:21

today. There are people who can start breaking

1:36:23

that cycle today. Be one. Of. Those people

1:36:25

wealth gain hastily will dwindle, but

1:36:27

whoever gathers little by little will

1:36:29

increases. T v The Tortoise. Be

1:36:32

a crock pot in a world full of

1:36:34

microwave. No sense. This is the Ramsey so.

1:36:41

Okay guys, I'm just gonna say it. It seems

1:36:43

like a lot of tax software out there wants

1:36:45

to keep you in the dark about how simple

1:36:47

tax filing can be so that in pressure you

1:36:49

into add on that drive up your bill. The

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Ramseys. More Tax is the classic blue

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jeans of Tax Software. Not skinny not

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be dazzled. it just makes. Them Simple,

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easy, and exactly what you need. And

1:37:00

you can save up to seventy percent.

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Pure to other tax software. And if

1:37:05

you register for Ramsey Smart Tax the

1:37:07

day you get free resources to help

1:37:09

you feel confident about filing. Just got

1:37:11

a Ramsey solutions.com/smart Tax and see just

1:37:14

how simple tax filing can be. That's

1:37:16

Ramsey solutions.com/smear Tax. Welcome

1:37:20

back to the Ramsey! So I'm Dorothy

1:37:22

Hamill joined by Jane Wars and in

1:37:24

the lobby on that debt free stayed

1:37:27

Rigatoni han hi patients as you guys

1:37:29

doing the horse race. why can tell

1:37:31

by your Ramsey swagger t shirts live

1:37:33

like know analysis Debt free You're here

1:37:36

to do that free scream that is

1:37:38

correct where ya from. Hammond.

1:37:40

Indiana? Wonderful. And how much that did

1:37:42

he pay off? The. Responses in

1:37:44

one thousand dollars? Wow and

1:37:46

not a penny less? Okay,

1:37:49

and how longer that take? four

1:37:52

years and seven months move wow and

1:37:54

what was the range of income during

1:37:56

that time we started at sixty thousand

1:37:58

dollars and in at 123,000. Let's

1:38:01

go. I like that. What

1:38:03

do you guys do for a living? I'm

1:38:05

a flight attendant and

1:38:08

a recent SCMT graduate. A

1:38:10

financial coach graduate. Nice. Went

1:38:13

through our financial coach training. That's cool. Yes. And

1:38:16

I'm an assistant principal. Wonderful.

1:38:19

Okay. So let's talk about this $301,000. What

1:38:22

kind of debt was this? Oh, it

1:38:24

was student loans. A...

1:38:27

Technically. Wow. I

1:38:29

was a smart one. She's

1:38:33

like, I have no problem pointing at you

1:38:35

for this. I have

1:38:37

a semester of high quality college education,

1:38:39

so it's all his master's degrees. So

1:38:41

a lot of education. What else was

1:38:43

in the mix? 401k

1:38:46

loans, two phones, two

1:38:49

iPhones, two cars, credit cards,

1:38:51

all of that. Wow.

1:38:54

Just the normal, typical American lifestyle. Yes.

1:38:57

Yes. A potpourri of debt, if you

1:38:59

will. Yeah. And it kind of started when

1:39:02

we actually had our second

1:39:04

oldest son. When my wife

1:39:07

had him, then we ended up... I

1:39:09

ended up getting a torn Achilles a

1:39:12

month after she had him. So we were both

1:39:14

off work for... And I

1:39:16

was off for at least six months. Wow. And

1:39:19

then my wife couldn't go back to work

1:39:22

because at that time, she was taking care of

1:39:24

two babies, unfortunately, me and my

1:39:26

son. Who was the bigger baby? Oh

1:39:28

my goodness. I would say he

1:39:30

was. Okay, thank you. Oh,

1:39:33

okay. Okay. Wow. Okay.

1:39:36

So four years, seven months ago, I mean, something took a turn.

1:39:39

What happened? I was sitting on the couch,

1:39:42

just tired, and the

1:39:45

Holy Spirit tapped on my shoulder and said,

1:39:50

you have a book that can change this. And

1:39:54

I had a flight attendant. I used to go in the front and

1:39:56

sit with the pilots because they had a lot of money.

1:39:59

So I used to ask... them a lot of questions and

1:40:01

one of them told me to get Total

1:40:03

Money Makeover and I got it in my

1:40:06

early 20s but I didn't need it at the time. But

1:40:08

it said in my library all that

1:40:11

time so I went to where our books

1:40:13

were and I looked and I found the book and I

1:40:15

read it in a day. He

1:40:17

gave it to him and he read it

1:40:19

and that's what started. So

1:40:22

Tony, she comes to you with this book. She

1:40:24

just read it in a day. She's looking like

1:40:26

crazy eyed over this plan I'm guessing. So

1:40:29

what was your response? Were you like okay honey

1:40:31

sounds good? So initially yes I

1:40:33

said okay honey it sounds good with

1:40:36

no intentions of reading it like she

1:40:38

did. But once I

1:40:40

picked it up and actually looked

1:40:42

through it and started it's such

1:40:45

an easy read. That's right. And

1:40:47

it was just so understandable and

1:40:49

relatable and then just listening to

1:40:51

the other testimonials I

1:40:53

ended up reading it within not one

1:40:56

day maybe two days. But

1:40:58

yeah I definitely got on board right away. Wow.

1:41:01

So Hypetia when

1:41:03

you start talking about there's clearly emotion there. Is

1:41:06

the emotion oh my gosh this

1:41:08

book changed our life. Is the emotion I wish I

1:41:10

had started sooner. Tell me about what you're feeling in

1:41:12

that moment. I

1:41:14

felt like God asked me

1:41:16

to do something important for

1:41:19

my family. There

1:41:22

was a lot of death happening. My

1:41:25

mom and my grandma and seven people

1:41:27

died on my mother's side of the

1:41:29

family. Oh my goodness. Gosh and I

1:41:31

felt like before I died I wanted

1:41:33

to do something special for my family. Well

1:41:37

at that point you're like life is

1:41:39

short. What are we doing? We got

1:41:41

to get on this thing. I was

1:41:43

unsure about what I was going to leave.

1:41:46

What legacy I would leave behind. And

1:41:48

so that was something you could control.

1:41:50

You can control this. You got to

1:41:52

change your family tree. Four years and

1:41:55

seven months. 300, 1000 paid off. What

1:41:58

was the hardest part of this journey? short

1:42:00

amount of time to sacrifice. I

1:42:03

would say cooking. Cooking every day. Our

1:42:05