0:01

Live from

0:11

the headquarters

0:30

of Ramsey Solutions, it's the

0:32

Ramsey Show where we help people build

0:34

wealth, do work that they love, and

0:37

create actual amazing relationships. Not the fake

0:39

kind, the real kind. I'm your host

0:41

Jade Warshaw joined by Rachel Cruz host

0:43

of the Rachel Cruz show that you

0:46

can find on YouTube also Smart Money

0:48

Happy Hour. Love that. Right. Also

0:50

the author of I'm Glad for What I Have. Listen,

0:53

the list goes on. Oh Jade, it's good to

0:55

be here with you. Love it. Alright, if you

0:57

want to talk about your life or your money

0:59

you can give us a call. The number is 888-825-5225

1:01

and we will do exactly that. So let's go straight

1:06

to the phone lines where we've got

1:08

Nicole in San Francisco, California. What's going

1:11

on Nicole? Hi

1:13

Jade, thanks for taking my call.

1:16

No problem. So my

1:18

question is I live in a

1:20

very expensive area. Half of

1:23

my take home check goes to

1:25

my rent. I work remotely so

1:27

it's kind of ridiculous that I'm being

1:29

here and I am thinking about moving to Texas. I

1:31

see that the new constructions

1:36

in Texas, they have lower interest rates

1:38

like 4.9% interest rates

1:42

whereas the interest rates right now

1:44

are 7% and I'm wondering if

1:46

that's too good to be true.

1:48

Why are the new construction interest

1:50

rates so low in attractive

1:53

and it should it be

1:55

something that I pursue? I have

1:59

heard of new construction

2:02

being able to offer new

2:04

opportunities. So, I don't think it's too good to

2:06

be true. Does

2:09

your question go further? No, yeah.

2:11

I was wondering if there was like

2:14

some sort of trick that they're

2:16

doing that I'm not understanding. You

2:20

know, also

2:23

it's a big move for me and it's a big move for me.

2:26

And it's something that I want to do because I am

2:28

single and just live by myself and

2:30

my dog.

2:34

And if I were to move to Texas and save

2:36

money, I would be able to pay for egg freezing, which is

2:40

something that my job doesn't help pay for. And

2:43

it's also something that I was like, I know I

2:45

don't want to finance it. They have

2:47

a lot of payment plans for egg freezing. And

2:49

I think that's a big thing.

2:51

They don't want to finance it. They have a

2:54

lot of payment plans for egg freezing. And it's

2:57

something that if I move to Texas, I

2:59

could save money because I mean, even a

3:01

mortgage payment is going to be way lower than

3:04

what I pay for rent right now. Yeah, and

3:06

we're seeing that. So, also, Nicole, I mean like

3:08

your situation is very common and we're seeing that

3:10

a lot with people in these like really high

3:12

priced areas, especially where you are. San Francisco, the

3:14

Bay Area, I mean, I think it's number one

3:16

right now and the most expensive places to live.

3:19

But you look at people in New York and different

3:21

places and we're seeing that people are

3:23

gravitating obviously to places that they can

3:25

actually have an affordable lifestyle and actually

3:28

enjoy their money versus being

3:30

tax-high, real estate being insane, and experiencing

3:32

exactly what you're experiencing. So, just know

3:34

you're not alone in that change, even

3:37

though that's a big change, you're right.

3:39

I'm like when you decide to change

3:41

locations and states and it

3:44

is, I mean, you're uprooting your life, but I

3:46

think what you have to realize is you're doing

3:48

it for a reason, right? You're not necessarily running

3:51

away from something, right?

3:53

You're running to the life that you want and

3:55

in order to get that and do the things

3:57

that you want to do, like freeze your eggs

3:59

and different things. things, you have

4:01

to have more margin. And so that means other areas

4:03

of your life are going to have

4:05

to look different in order to do that. And so

4:07

you're just kind of weighing the pros and cons and

4:09

I really applaud you for that and it's not easy

4:13

but it's a reality I think a lot of people

4:15

are facing. One hundred percent.

4:17

And here's the thing, even if you get there

4:19

and you realize, oh man, whatever they quoted me

4:21

on the interest rate, it's slightly higher or it's

4:23

not quite that. It's still a

4:26

better situation financially. You're still going

4:28

to get more for your money. You're still going

4:30

to be able to afford owning

4:32

a home or getting a place for yourself more

4:34

easily. So what are you looking to spend? Can

4:36

you tell us a little bit about what you're looking to spend? Obviously

4:39

having your rent or your mortgage be 50% of

4:41

your income is just not sustainable

4:43

long term. So have you identified

4:46

a number that puts it at 25% and what

4:49

you could spend in order to get that? Yeah.

4:52

So I was looking at homes around 300,000

4:54

which here I would be 1.5 million. Yeah.

5:01

Exactly. It's crazy. Crazy.

5:03

Well good for you Nicole. Yeah, I think

5:05

it's great and I think

5:07

builders are feeling a little bit of the

5:09

pinch of people pulling back. When rates went

5:11

up, suddenly everyone kind of paused and they're

5:13

like, I'll just wait to see if rates

5:16

drop. And then when they drop, they

5:18

probably will. They're going to fluctuate. They're going to be like, oh,

5:20

I'm going to get a little bit of a break. And then

5:22

when they drop, everybody's going to be out of the works. And

5:25

I think Jay did just drive his prices

5:28

back up. So if anything, the time is

5:30

to get in now and you can always

5:32

refinance later. But if you're in a good position to buy a home,

5:34

I'm not saying everyone needs to rush out and buy a home. But

5:37

I think her, Nicole is a great example of kind of

5:39

looking at all your options, being wise.

5:42

And I think yeah, homes are not selling, have not

5:44

sold at least in the calendar year of 2023 like

5:46

they were in 22 and 21. So

5:50

I think builders are feeling a little bit

5:52

of that pinch. They're probably wanting some inventory

5:54

off their hands. And if they can partner

5:56

with the bank and all the things and

5:58

get a lower rate. They're probably

6:00

doing that to entice people. But

6:03

obviously, Nicole, do your due diligence. I mean, your home

6:05

is, for most people, the largest

6:07

purchase that you make in your lifetime. So don't

6:09

rush into something because I think sometimes, at

6:11

times, even these new builds as they go

6:14

real quick up, they may not be the best

6:16

quality. I mean, you want to look at quality,

6:18

look at different

6:20

areas and all of it. So do your research

6:22

because it's a big change and a big purchase.

6:25

And even, Nicole, what you could do is since you're moving

6:28

to a brand new state, you could even rent,

6:30

which I know you're so tired of renting right now,

6:32

but you really could for six months to a year

6:34

just to be like, okay, is this the part of

6:36

Texas I want to be in? And

6:38

once you buy a home, your plans are there

6:41

for a bit. Yeah, a completely new state, completely

6:43

new culture. I 100% agree

6:45

with Rachel in that I would

6:47

rent for him. And I definitely

6:49

would not do a long distance

6:51

home purchase of lights. I wouldn't

6:53

do that. So to your point,

6:55

there are new builders that are

6:57

offering those kind of incentives

7:00

on the rate because we had callers

7:02

call in saying, listen, I'm trying to sell my property

7:04

and it's hard for me because I'm having to compete

7:07

with a new builder around the corner who's offering a

7:09

lower – Yeah. So

7:11

that is definitely happening. So just do your

7:13

due diligence, do your homework. Don't just jump

7:16

out there and buy the first thing you

7:18

see that seems right because I mean,

7:21

I think it takes a while, Rachel, to

7:23

really get the feel of a new neighborhood,

7:25

let alone a new city, let alone a

7:27

new state. Like there's a lot on there.

7:29

Totally, yes. So, yep, absolutely. Yeah. And

7:32

I think Nicole too, I do applaud you just for

7:34

looking at options because Jade, we talked to a lot

7:36

of people and they're stuck – I feel like we

7:38

always pick on California. But California – It's expensive. Your

7:40

real estate is high and it's a high cost living,

7:43

so it's an easy place to pick on. But

7:45

a lot of people – and they're like, well, I'm in California, I'm in

7:48

California, I'm in California, this is it, this is it. You

7:51

have to realize about anything in life, which again, I know uprooting

7:53

your life is a big deal. I'm not saying

7:55

it flippantly, but I just love the fact

7:57

that she is taking initiative

8:00

saying, hey, I can make choices in my life.

8:02

That's right. And for me to have the kind

8:04

of life that I want, it's

8:06

gonna require some changes. And so for some of

8:08

you, maybe it's changing your money habits. For some

8:10

of you, it's changing location. I mean, I don't

8:12

know what it looks like for you, but this

8:15

idea that I have control over my life and

8:17

I get to make decisions for myself, it's powerful.

8:19

That's right. And remember, it's not just

8:21

change for the sake of change. It's change to

8:23

get you where you wanna go. You wanna be

8:26

a homeowner. You wanna have more margin in your

8:28

budget. You wanna be able to enjoy your

8:30

income. So focus on that side instead of focusing

8:32

on the uncomfortable part, the change, or I may

8:34

not know anybody. And just think of it

8:36

as an adventure. You're off on an adventure to

8:38

create the life you love in the words of

8:41

Rachel Cruze. That's right, that's right, Jade. This is

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now. You're

9:30

listening to the Ramsey Show. I'm Jade Warshaw, this

9:32

is Rachel Cruze, and we're taking your calls for

9:34

the next couple hours about your life and

9:37

your money, so give us a call. The number is 888-825-5225, and

9:42

we would be happy to answer any of

9:44

the questions that you have. In the

9:46

meantime, the Ramsey Show question of the

9:48

day is brought to you by Neighborly,

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your hub for home services. Neighborly offers

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a helpful winter maintenance checklist that you

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challenging, and in and around your

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home, Neighborly has a local pro to help. Find

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out more at neighborly.com/Ramsey. And

10:07

today's question comes from Heather in Wyoming. I'm

10:09

a stay-at-home mom and this has been

10:12

the most stressful, painful past two years of my life with

10:15

my husband making horrible financial decisions

10:17

that left us over $500,000 in debt. He

10:22

owns a tree service business making $70,000 a year

10:25

and is trying to start a mobile

10:27

mechanic business and has purchased an investment

10:29

property. We have $163,000 mortgage in our house. The

10:35

rent is a total disaster

10:37

that's completely... The rental,

10:39

I'm sorry, the rental is a total disaster that's

10:41

completely gutted and we have to make payments every

10:43

month while earning no income with it and no

10:46

progress on the repairs. He also bought

10:48

a brand new truck that we owe now $84,000

10:50

on and $18,000 on

10:52

a loan on a Bobcat for the business, a

10:57

$20,000 home equity loan

10:59

that he used to fix up the rental,

11:02

oh, and over $5,000 in credit cards. He

11:05

keeps saying he's working on it and

11:08

he is a hard worker but has

11:10

put us in a completely impossible situation

11:13

that dangers... that angers me and stresses

11:15

me out every single day. I

11:17

work odd hours because we can't afford childcare and even more

11:19

do I want to give up time with my kids to

11:21

fix a problem that I did not cause. I

11:24

feel so stuck and hopeless. All

11:27

right, can we just... Listen, I wrote

11:29

it all out because I'm trying to track with

11:31

this. Okay, Heather, this is not

11:34

a... you shouldn't be this way. She's

11:36

very bitter, as we can tell. Yes.

11:40

Very resentful, which again is

11:42

valid. They

11:45

feel like not only different

11:47

pages financially but

11:50

they have been split now

11:52

emotionally, really severed. It

11:54

sounds like she wants nothing to do with them. Oh,

11:58

and $5,000 in credit cards. It is

12:00

stuck and hopeless. She is not

12:02

in a good place. Which I get

12:04

it Heather. I'm like, yeah, all these decisions were not

12:07

wise decisions made He

12:10

made decisions without obviously talking to her or

12:13

working as a team. So what

12:15

do we do Heather? What are we gonna do? Ah I'm

12:18

seeking counsel Number one like I

12:20

always talk to folks about keeping their money

12:22

safe Rachel It's kind of like an acronym

12:25

and the first thing to decide like where

12:27

you're at So S is

12:29

for seeking counsel Like if you're noticing

12:31

trends within your money with your spouse

12:33

that you're like, what's going on here.

12:35

I feel uncomfortable I feel unsafe financially

12:37

I feel like there's something going on

12:39

see council and then you're gonna find listen

12:41

if there's things like addiction abuse That's

12:44

the a yeah, and then F is financial

12:46

infidelity Which this is getting real close to

12:48

falling under and my point in my opinion

12:50

it is because he's going out and spending

12:52

massive amounts of money without your

12:55

Permit permit well, I think permission your input.

12:58

Yeah without a mattering And then the E

13:00

of that is you need to evaluate your

13:02

options Yeah So that's how you go through

13:04

this and I do think that this is a sometimes

13:06

people think Financial infidelity is like I'm just hiding

13:08

money under the mattress or something like that But

13:11

I'm like, this is a lot

13:13

of money and it sounds like we don't know

13:15

Rachel But it sounds like she has made

13:17

her objections clear and it sounds

13:19

like we could be wrong It might be something that he

13:22

did and then after the fact she was like, well, how

13:24

could you do that? but Even

13:26

still you've got this is there's

13:29

financial issues here But when I look at

13:31

this I go this is a couple who

13:33

desperately needs to go to therapy Like they

13:35

need they need help and um, yeah, and

13:37

he's he's obviously not living in reality No,

13:39

and there's people like that that we talked

13:41

to and I hate to like pinpoint people,

13:43

but it's the dreamers It's that oh, I

13:45

have an idea and this idea is gonna

13:47

work. Yeah, I have a new idea here

13:50

Don't worry. Don't worry. This is surely gonna

13:52

and it is it's a level of immaturity

13:54

to a point when you actually Make

13:57

decisions in those dreams and they don't come to

14:00

fruition, you have to have reality to

14:02

say I can't do this anymore. So

14:04

there's a safety here Heather that I

14:07

would want for you. Like a point where you're like

14:09

I can't keep putting myself, there's

14:11

a level of danger there in this situation

14:13

that's endangering my kids and my family. That

14:15

is what it is. So that weight that

14:17

you're feeling is very very real and I

14:19

just want him to wake

14:21

up to the reality and I think what's gonna have to

14:23

happen is a third party you're probably not gonna be the

14:26

one to do it Heather sadly and I think sometimes that's

14:28

right. I mean it's like our spouse I

14:30

mean all of us feel that way with our spouses. There's

14:32

always that thing that you're like if you know this this

14:34

or this and you can you can say it and then

14:36

it ends up being nagging and it's not effective but

14:39

when you actually sit down with a third party

14:41

usually if it's coming from someone else it's speaking

14:43

there but that's that's it. I'm

14:45

like the financial issues here

14:47

are a symptom of where

14:50

you guys are in your marriage and again I

14:52

don't blame you Heather for being angry and bitter

14:54

but what are we gonna do with that? We

14:56

can't just sit in that and continue to be

14:58

in that cycle. You Heather have to then grow

15:00

and learn other boundaries you put up now. Is

15:02

there like what do you do now? What are

15:05

those steps? Yes that's right. Which is really hard

15:07

but situation. Yeah that's right because

15:09

something's got to change and in

15:11

a situation like this not

15:13

to belabor it but there's very little you can

15:15

do to control the other party. Like there's nothing

15:17

you can do really to control the other party

15:20

but you've got to sit down and figure out okay what am

15:22

I Heather going to do in

15:24

order to try to better this situation? I

15:26

can seek out counsel I can put these

15:28

boundaries in place but then you've also got

15:31

to kind of have that point of where

15:33

you go okay where does this just get

15:35

completely toxic and you know that's

15:37

up to you and like Rachel said

15:39

a third party. I mean yeah and Jade we

15:41

talk all the time about couples staying on the

15:43

same page being on the same team all of

15:45

this but there's extreme situations that we talk about

15:47

a lot and I mean Heather maybe and one

15:49

of those for me where I'm like there's a

15:51

point that you have to protect

15:53

yourself and your kids right like if

15:55

he's gonna continue to spend mm-hmm I

15:58

mean hundreds of thousands of dollars I

16:00

don't want my name on this. I don't want my name

16:02

on that. And if you're headed towards it, I'm not putting

16:04

this evil on you. But if

16:07

you're heading towards a point where you're like, listen, I don't know if

16:09

I see us together in the future, the

16:11

more he racks up, I don't want to be any

16:13

part of that. Because if you don't stick together, I'm

16:15

looking like, is the first part of this going to

16:18

be on me? No. Yeah. So

16:21

for the time being, Heather, there's probably some hard boundaries I would put up to protect

16:23

you and the kids. But working

16:25

on your marriage could solve a lot of this.

16:27

And then my prayer is that they

16:29

would get to a point that they are in agreement

16:31

and realize, OK, he's not going to do

16:33

X, Y, and Z. And

16:36

now as a team, we have to work together. And if you

16:38

guys get to that point, Heather, that's where you have to say,

16:40

all right, we're in this together.

16:42

What are we going to do? And then

16:46

it's on both of you to just link arms and get

16:48

out of it together. Yep. And that's what

16:50

we pray for. We don't want this to split couples. But

16:52

this is the stuff that causes divorce and marriages,

16:55

right? If another

16:57

spouse doesn't want to take the responsibility of the

16:59

decisions they've made, they're probably not taking

17:01

responsibility in other parts of the marriage too. That's a

17:03

good point. So hard. Such a

17:05

good point and such a good reminder, man.

17:07

It's uncomfortable and it is not fun. But

17:09

have conversations with that person that you're

17:12

engaged to or even that person that you're dating.

17:15

And if you've just gotten married, start having these conversations,

17:17

you've got to know the other person's philosophy on money

17:19

at the end of the day. And

17:21

not just make assumptions and go, oh, they've got a good

17:23

job. They probably have it together. Or they don't seem like

17:25

they have a lot of debt. Really

17:28

digging deeper and figuring out and

17:30

just asking, even when you dream together, Rachel, I

17:32

know there's time Sam and I will sit together

17:34

and think about, oh, it would be cool to

17:37

have a business like that one day. Then take

17:39

it a level deeper and go, well, to what

17:41

extremes would you go? I would never take out

17:43

money for a business, would you? Really

17:46

ask the questions. Find ways to

17:48

bring money into the conversation so you really understand

17:50

in a lot of different facets what their views

17:53

are on money because as

17:55

we see here, it can really

17:57

be an issue long term.

18:00

attention point. So yeah, it's a big

18:02

relational wedge. That's

18:06

cause, so yeah, you're exactly right. And

18:08

I think, you know, especially when you're dating

18:10

and engaged, we get this question a lot of, you know,

18:12

when do I bring up the money? When do I love

18:14

it? And, you know, we

18:16

would always encourage to be having hard

18:19

conversations about everything, right? And we've talked

18:21

to people in the show that have

18:23

been dating for six years and they

18:25

don't know anything about their

18:27

partner's financial situation. They

18:29

think this or that, and I remember being on the show with

18:32

you one time, we were like, what did they talk about? I

18:35

know! So take this stuff seriously, you guys.

18:37

I'm like, don't like ask about their 401k

18:39

on the first date. That's a little extreme. But

18:41

start, you know, understanding like to be in the

18:43

same value system with the person you're gonna link

18:46

arms with. And yeah, but it's a hard one.

18:48

It reveals a lot. Listen, I

18:50

say all the time, if you have

18:52

babies together, you can share a bank account.

18:54

Like that, that needs to

18:56

be it. And both people's opinions should matter. And

18:59

sometimes it takes some time and many, many conversations and

19:01

counseling to get to that point, but go through that journey.

19:03

This is the Ram's issue. This

19:09

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19:12

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19:14

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of events. My followers won't

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19:34

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19:40

is The Ramsay Show. I'm Jade Warshaw. This is

19:42

Rachel Cruz to my right, and we're taking your

19:44

calls. So give us a call. The number is

19:46

888-825-5225, and we'll try to help you out. Let's

19:52

go straight to the phone lines where we have Avery

19:54

in Newport News, Virginia. What's

19:56

going on, Avery? Hey, Jade

19:58

and Rachel, it's so great. to talk to you. I can't

20:00

wait to see you guys in May. Awesome. Oh,

20:03

you're kind of a total money

20:05

makeover weekend. Oh,

20:07

yeah, absolutely. And I'm bringing a friend to love

20:09

it. So fun. Love that. How can we help

20:13

today? All right. So here

20:15

is the situation. My mom always

20:17

says the strongest thing in the universe is

20:19

compound interest. My brother always says time in

20:22

the market beats timing the market every time.

20:24

Let's go. And I thought I was smart

20:26

enough to time a dip. I had about

20:28

$21,000 worth in

20:30

a Fidelity mutual fund in my Roth

20:32

IRA. And I sold my positions on

20:34

it back in September. I was

20:36

going off a bad hunch and have

20:38

watched the market rally by

20:41

like at least 20% cents.

20:43

And I've calculated that I missed out on about

20:45

$4,000 worth of gross. I'm kicking myself

20:49

I still contribute weekly for that

20:51

$21,000 is still sitting there in

20:53

the account. I feel like I've learned

20:55

my lesson. But what do I do now? Should

20:57

I buy back in or should I wait for

20:59

the rally to end and maybe buy in on

21:01

a dip? Listen, I'm

21:04

first, I'm glad that you've learned

21:06

your lesson. And I hope that it sticks.

21:08

Do you have any debt? I

21:12

have no debt. Okay, do you have three

21:14

to six months of expenses saved? Yes,

21:16

I do. Awesome. Listen, I'm getting back in

21:18

today. And from here on out, I'm adding 15%

21:21

of my gross income to

21:23

it every single month. Okay,

21:27

today? Yeah. How

21:29

are you feeling? Are your armpits sweating? What's going

21:31

on? Yeah, I feel like I don't

21:33

know if I buy now I feel like it's

21:35

so high. You're

21:38

timing the market again. That means you haven't

21:40

learned. You haven't learned. I just learned. Avery.

21:44

Yeah, okay. Yeah,

21:46

because Avery, I think the point, the

21:48

point though is, is that all

21:51

of this is long term, right? So whether you get

21:53

in today, whether you get

21:55

in in 30 days, whatever it is, the

21:57

earlier you get in. you

22:00

ride this out, again long-term,

22:02

we're talking decades here, that's

22:05

what's important. So $4,000 at

22:07

the end of when you're 65,

22:09

it's going to be a drop in the bucket because

22:11

how old are you now? I'm

22:14

25. Yeah. So like all

22:16

of the, I mean it is. If

22:18

you time it, if Avery of February

22:21

of 24 is different than

22:23

Avery in July of 24, I mean like if

22:25

you wait six months or whatever, it's

22:28

not absolutely the end of the world but I think

22:30

it's more about the principle behind this,

22:32

right? The idea is that I can't time the

22:34

market. It's an election year. We have no clue

22:36

what's going to happen and

22:38

so if anything, I'm like yeah,

22:41

the lesson is I'm not going to try to

22:43

time the market. The lesson is I want to

22:45

invest long-term. That's what I'm doing. So to

22:48

practice on the principle of

22:50

the idea is to say yeah, I'm

22:52

at a position to start investing, put my money in

22:54

the market. Yeah. Okay

22:57

and so even if I buy

22:59

in today and then it goes down, like I

23:01

feel like I'm going to kick myself again. Avery,

23:03

you're not going to worry about it until you're

23:06

65. How old are you? I just

23:08

need to try. 24, 25. Listen, think about

23:10

it. Okay, if you, I think you're focusing

23:13

and Rachel, I'll try to lay it out for you and I

23:15

think she did a beautiful job but let

23:17

me take a swing at it. I

23:19

think you're so focused in whatever rate of return

23:22

that you're hoping to get immediately or in the

23:24

next couple of months but if you look at

23:26

it, like I don't know if you're new to

23:28

the show but we talk all the time about

23:30

oh, you can get, you know, even if you

23:33

just invest in an S&P 500 account,

23:35

you're still going to look at about 10% over

23:38

time. Everything is over time and if you're

23:40

pulling it out every month or every other

23:42

month or when you think the market is

23:44

dipping, you're not allowing for the rebound. That

23:47

always happens on the other end of that. Or

23:50

you can look over the last 20

23:52

years even, you can just see, listen, the

23:54

annualized rate of return has been upwards of

23:56

10% and that's what you can count

23:58

on. That's why suggest what

24:01

we suggest and that's why

24:03

everybody invests in these accounts

24:05

in order to have their retirement. Avery I say

24:07

this in the most loving big

24:09

sister way that I can. You

24:11

are gonna be your worst enemy okay? You're

24:14

gonna be the person that's gonna be going

24:17

on CNBC and watching the

24:19

ticker at the bottom and saying oh

24:21

gosh oh gosh Avery you got you have

24:23

to you have to put the money in

24:26

and you've got to forget about it. That's

24:28

what this is. This part of investing is

24:30

that. It is long-term retirement type mentality and

24:33

it's gonna take some it's gonna take some

24:35

restraint from you and your personality because I'm

24:37

trying to talk you off the ledge and

24:39

your money's not even in the market. You

24:42

know what Avery you have to really

24:44

Avery is who really needs a smart

24:46

investor pro because one of

24:48

the things that they will help you do

24:50

is not freak out. Talk you

24:52

off the ledge. Yes yes yes exactly

24:54

yeah so it is one of those things Avery

24:57

you I mean I never really I mean I

24:59

watched the market for this job so what so

25:01

we know what's going on in the economy but

25:03

from a personal standpoint I'm like and

25:06

it kind of sucks for me Avery from a

25:08

personal because I'm like I'm such a spender and

25:10

when we fund our

25:13

401ks and Roths and all the things that we're supposed

25:15

to do because we're smart and we're wise and we

25:18

actually do it Jade even though it kind of makes

25:20

me like blah because it feels like a black hole

25:22

and I'm like this money is leaving we're up we

25:24

could be going on a great vacation. So

25:28

it does kind of feel like man my money's just

25:31

leaving and I'm never gonna see it again but you have to

25:33

have the you you have to know that a

25:35

65 year old Avery is

25:37

it's gonna want to live a great life

25:39

and and you're gonna have a plenty of

25:41

money to do that Avery if you start

25:43

investing now and not try to time every

25:46

little thing because when you're in that little

25:48

situation that's the principle you live by you're you're

25:50

not gonna win long term because you have to

25:52

have a long-term mentality. Yeah you can't do

25:55

this I feel like he's trying

25:57

to find a way to maybe make

25:59

this thing happen faster and get rich quick

26:01

and I'm like listen it

26:04

doesn't work that way and if it does I feel like

26:06

it's a fluke and then everybody tries to figure out what

26:08

it was that they didn't like listen just understand it

26:10

was just something that happened in a moment so

26:12

oh I hope that helps let's take another call

26:15

let's go to Haley in Philadelphia all

26:17

right Haley what's going on hey

26:20

guys thanks I'm taking my call you're

26:22

welcome my

26:24

question is I'm wondering if I should sell

26:26

my car to pay off my student loans or

26:29

if I should keep my car paid

26:31

off tomorrow and follow the baby steps

26:33

to pay off my student loans okay

26:36

well how much do you have saved and how much is

26:38

the car bringing if you sell it so

26:40

I have ten

26:43

thousand dollars saved and the

26:45

car value on Kelly Blue Book is fifteen

26:48

thousand okay do

26:51

you owe anything on the call oh

26:53

yeah I owe five okay

26:55

thousand so essentially you'd be how much

26:57

okay how much is your student loans

26:59

I have

27:02

seventeen thousand okay how much do you make a

27:04

year I make

27:07

70 okay no I would not sell this car

27:09

no you owe five thousand dollars throw that throw

27:11

five thousand of the ten thousand haven't paid off

27:13

today and it's gone

27:16

and then you have yeah four thousand keep

27:18

a thousand dollars in an emergency fund take

27:21

four thousand throw it at yeah

27:23

the student loans and gosh and you got thirteen

27:25

thousand what making seventy thousand you're gonna yeah you'll

27:27

be able to pay off these suit loans quick

27:29

yeah I love it okay yeah I would not

27:31

I would not sell it okay

27:34

perfect and I'm right now I'm putting 11% of

27:36

my income pay it

27:38

into my 401k so I'm assuming I should probably

27:41

stop that yeah that's right pause that yep exactly

27:43

that'll be more money back in your paycheck to

27:45

throw at the stat which is which is awesome

27:47

yeah I mean if you had like we talked

27:49

to a girl two days ago

27:51

me and George said and she had a

27:54

SUV BMW she could sell it for like

27:56

70,000 I mean it was a pretty big

27:58

like you know she owed some money on

28:00

it. She could have paid it off with her stuff, all this stuff.

28:02

But I mean like it was

28:05

a, you know, an asset that's like oh my

28:07

gosh you can sell it and make something. But

28:09

no, you, yeah with a $15,000 car

28:12

you owe five, you make $70,000, you're in a great position

28:14

just to sell it and you have that $10,000 saved which

28:16

is awesome. Yeah

28:18

and I mean the reason why I wanted to

28:20

sell my car to begin with is because I

28:23

live in Philly and I work from home. So

28:25

I'm literally using my car once a week

28:27

and I probably like go see my parents.

28:30

So that was kind of my thought but I mean

28:32

it makes sense too. I mean

28:34

I don't feel like it's something that's on

28:36

fire for you to make that choice right

28:38

away. I'm with Rachel. If you still owed

28:40

$15,000 on it, it might be a different discussion

28:42

but the fact that you only owe five and

28:44

you have the five in your possession and you

28:47

still have money to make decent headway on the student

28:49

loan, I feel like it's something that after you pay

28:51

off the car and maybe a year

28:53

from now if you're like listen I never use this

28:55

car you might decide to sell it but for now,

28:58

stick in with it. Listen good job. I'm

29:00

happy for you. You'll be debt free in no

29:02

time. This is the Ramsey Show. This

29:07

episode is sponsored by BetterHelp. Hey this is

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30:09

You are listening to the Ramsey Show.

30:11

I'm Jade Warshaw. This is Rachel Cruz

30:13

and let me tell you something. I'm

30:15

hyped guys because we have a great

30:17

live event coming up in

30:19

the late spring. Actually, it's May

30:21

10th through 11th. It's the total money

30:24

makeover weekend and

30:26

listen, I've been here for some really great

30:28

live events, Rachel, but I think this might

30:31

be the one that I'm most excited about.

30:33

It's going to be all the personalities. It's

30:35

a whole weekend here in Nashville at our

30:37

live event center up there on a beautiful

30:40

hill with a beautiful view of Nashville and

30:42

the surrounding area. We're just giving you a

30:44

crash course on the baby steps,

30:46

how to manage your money. I love this event

30:48

because it's really for anybody regardless of where you

30:50

are in the baby steps. You could be on

30:52

baby step one or baby

30:54

step seven and you're really going to benefit from

30:56

being at this event. It's like a rally, Rachel.

30:59

I'm here for it. At Ramsey, we've

31:01

done so many different types of events like you

31:03

said and we try to cover some

31:05

events. We try to cover your whole life and we

31:07

try to do it all. It is fun to focus

31:11

in on a subject like money which is what we

31:13

talk about most of the time here on the show.

31:16

To have a whole weekend dedicated to

31:18

that and really have the time to

31:20

walk through principles

31:22

and ideas and motivation and fun. George

31:25

and I are going to do a

31:27

Smart Money Happy Hour live broadcast the

31:29

Friday before. I think I'm allowed to say

31:31

that. Go ahead and say it. If I

31:33

wasn't supposed to, sorry. There's just some really

31:35

fun things we're going to be doing. If

31:37

you are a fan of the

31:40

content on this show and others, you're going

31:42

to love this weekend. It's really fun. Listen,

31:44

I'm excited. I had a meeting yesterday with

31:46

one of our folks on staff

31:48

who helps plan the content and I told her one of

31:50

my ideas. It's out of the box, Rachel. Oh,

31:52

I get it. You're always good at

31:54

that. You're creative. Early

31:57

bird tickets start at $99 but remember

31:59

it's for a limited time. So go to

32:01

ramseysolutions.com/events today because Rachel and I both know

32:03

these tickets sell out super fast And if

32:06

you want that early bird pricing you got

32:08

to do it today or like tomorrow this

32:10

weekend You just got paid so go on

32:12

ahead and do it $99

32:15

get that now at ramseysolutions.com/ Events

32:18

that's exciting man after that I feel like we

32:20

have to go to the phone lines if you

32:22

want to call in the numbers Triple eight eight

32:24

two five five two two five and we'll try

32:26

to get to your call But in the meantime

32:28

we had Madison in Tampa, Florida. What's going

32:30

on Madison? Hi

32:33

guys, thanks for taking my call So

32:36

I'm just in a predicament I

32:39

just found out that I will be terminated from my

32:41

job that I've been at for almost five years As

32:43

of July 31st of this year Sorry,

32:47

what do you do? I'm

32:50

currently a business financial administrator For

32:53

a sales and marketing company, okay Yeah,

32:58

I make about $43,000

33:00

a year So

33:04

I have six months to plan we're

33:06

not officially terminated until July 31st

33:08

and at that time we will receive severance So

33:10

I don't know how much okay? I

33:15

Keep going. I Don't

33:18

currently have anything in savings and

33:21

I'm worried about what's

33:23

coming next Yeah,

33:25

so Madison the way I would handle this, you know

33:27

when we talk to people

33:29

who are paying off debt and There's

33:32

a big life change that they are aware of

33:34

most loads of time. It's a baby, right? They're

33:36

pregnant and we call it stork mode pause the

33:39

debt snowball and just pilot money And

33:41

I would say the same would be true if

33:43

someone knows that they're gonna relocate and they know

33:45

that they're gonna have some Moving expenses we'd say

33:47

put some of that money aside and for you.

33:49

Thank God you have six months Which

33:52

is a gift to at least know that they're not coming

33:54

in and they're like today's your last day honestly So

33:57

for now, I would I would save

33:59

you know. As much as possible I would

34:01

be in that mode of savings and say we do

34:03

have a lot of debt. So

34:06

I have about thirteen thousand dollars and

34:08

day I'm what's it and majority of

34:10

the. A. Student Loan so com.

34:12

I just recently got my accounting. My

34:15

associate's degree in Accounting. Okay, he can see as

34:17

to what I would I would be saving Madison

34:19

And then I mean I would start looking

34:21

Latin May is and say hey, I'm at or

34:23

even line up a job. Sooner than that, I'm

34:26

they. I'm trying to do it Now would you

34:28

leave a job I always wonder about that.

34:30

They give you six months. I mean if you

34:32

know if you know it's happening in six months

34:34

I know I would not wait. I personally would

34:37

not wait. to the wire. Yeah, I don't I'll

34:39

be honest with you, aren't Madison. I don't

34:41

know a ton about the financial admin space. Is

34:43

there a lot of jobs. Out there is

34:45

easy to just cannot go and apply for

34:47

something and get it. Or do you feel

34:49

like. You. Know that it could be

34:51

a couple of months to find something. Would you think?

34:54

have you looked gorgeous? Had another the I hope. So

34:57

I don't think there's much as far

34:59

as the admin side arm, but I

35:01

do have a part time. I'm currently

35:04

was a company called Primerica and I'm

35:06

currently getting license against recently got license

35:08

for life insurance and I'm currently trying

35:10

to get license for investment Dumb so

35:13

I've been trying to build that and

35:15

I'm also wondering some up to receive

35:17

my tax return or time I hear

35:19

ya I'm I'm going to receive a

35:22

nice. Chunk. I have a twelve

35:24

year old breeder, old, two year old

35:26

and a one. you're always. I see

35:28

a fortune out. Yeah, yeah, so I'm

35:30

I'm A. I'm going to receive about

35:32

little over ten thousand dollars my tax

35:34

return and I'm wondering. What? My

35:37

best. Subsides Who say that that

35:39

has a higher are you married Madison? on

35:42

know and now i have a partner i do

35:44

have a by blab of boyfriend okay i just

35:46

don't know if there was like and dual income

35:48

situation i'm here's the yeah i'm the only i

35:50

doubt i'm the breadwinner that in my situation of

35:52

that don't sticker or what i don't want you

35:55

to do a stick around simply to get the

35:57

severance like thinking like i'm going oh yeah thing

35:59

up to the to get, especially an unknown amount

36:01

that you're like, listen, I don't even know how much it is.

36:05

In this equation, I care more about stability

36:07

and taking care of the kids. So really

36:09

lining up something, or at least listen, start

36:11

getting options. It's not to say that you

36:13

have to take the first job you apply

36:15

for, but start seeing what's out there. If

36:18

I'm you, I'm using this as an opportunity

36:20

to take a step up, find

36:22

another position that's within my field of

36:24

knowledge and what I love to do

36:26

to possibly get a raise and get

36:28

a higher salary and really just look

36:31

at this. I mean, I know it sucks and it hurts. You've

36:33

been there for five years. But like

36:35

Rachel said, it's a gift that you've got six months. And

36:38

really think of this as the stair step to the

36:40

next best thing and the next good thing for you

36:42

and your family. And before you

36:44

get off here, let's connect her

36:46

with some of the Ken Coleman

36:48

materials. The assessment, his book, Proximity

36:51

Principle would be great too. Yeah, so often

36:53

if we can give those to her, that's a great

36:55

point. Yeah, and Madison, I would be encouraged to, I

36:57

mean, it's not like you're trying to replace a $143,000

36:59

position. A

37:01

$43,000, you can do that. You're smart, you've

37:03

done this. And you've been with this

37:06

company for five years. So there is a part of you

37:08

that you want to leave well. But

37:10

I don't know why my heart kind of flipped on

37:12

this, Jay. But when I'm like, oh, you got four

37:14

kids. All right, we're a single mom, we got to

37:16

provide. Yeah. Now you have to do what's best for

37:18

Madison. And I think you can leave well and respectfully.

37:21

But I would be looking for another job because you

37:23

got to pay your bills. Yeah. And

37:25

so, and if you find it and you find a job you love and

37:27

they need a sooner start date, I would just tell the company, I

37:30

would give plenty of notice. Yeah. Be doing

37:32

it respectfully. But you have to take care, you have

37:34

four kids to take care of. So I would do

37:36

this faster. And again, I have to say if you're

37:38

a single person, all that, but you don't have, there's

37:40

not as much. That's right. It's on you. You

37:42

could probably have a level of flexibility to a

37:44

degree. But when you have

37:46

dependents in your household, you want

37:48

to make sure that you're well covered. So I would

37:51

be saving that tax return. I

37:53

would be saving every penny you can between

37:56

now and finding a new job. But- Well,

37:58

let's talk about that Rachel. Okay. Okay, so when

38:01

I was, in my

38:03

day, if you left a job,

38:05

it was like, listen, give two weeks notice or more if

38:07

you can. Is that still like the running?

38:09

I think so. Is that still the thing, two weeks

38:11

notice? To me, I feel like that's a respectful, right?

38:13

And the company, you know, like here at Ramsey, if

38:16

someone gives her two weeks, they usually don't last, they

38:18

don't stay the whole two weeks. It's like, hey, let's

38:20

wrap some stuff up. Because once you're done, you're done.

38:22

Yes. But if they're in a

38:24

position of, because it sounds like layoffs, so the

38:26

company's not in a good position. So if she

38:28

does have a critical role, I would want to

38:30

hand that responsibility off to do it well before

38:33

my area is gone or

38:35

whatever the situation is. So. That

38:38

will never bite you in the butt. It's always never want to burn

38:40

bridges. Yeah, for me, two weeks is very appropriate. I think

38:42

so too. I'm like, listen, if you

38:44

can give more, if there's a way to do

38:46

that, I'm not mad at that either. Because

38:49

people give less and I'm like, or like,

38:51

or two days or whatever. That's terrible. Or

38:53

I could just walk in and be like,

38:55

I quit. Like, are you kidding? Listen, you

38:57

never know. One thing I've learned, Rachel, is

38:59

you never know who you'll run into on

39:01

down the line. Yeah. You know,

39:03

you get older because the world is small, like

39:05

it's big, but it's small. And

39:07

I've always been shocked at the people who have

39:10

like come back around in my life or vice

39:12

versa. And it's kind of

39:14

funny because sometimes people want things and I'm

39:16

like, I know how you were. And I've

39:18

worked with you before. You know? Yeah.

39:21

But Madison too, and anyone out there that has a big

39:24

change like that, I think Jade, you said something that I

39:26

was like, yes, see this as an opportunity of growth. In

39:28

Ken's book, the proximity principle is really going to help you

39:30

find that next better thing, right? This is a

39:32

closed door to open something great. And we want

39:34

to believe that for you, Madison. Absolutely. Well, thanks

39:37

for hanging out with us. Keep hanging out with

39:39

us. We're going to take more

39:41

of your calls. We'll be right back.

40:00

hour. Jade Warshaw joined by your other host,

40:02

Rachel Cruz, and we are taking your calls

40:04

for the next couple of hours on your

40:06

life, your money, whatever it is that's going

40:08

on in your financial situation. We'd like to help

40:11

you with that. So give us a call. The

40:13

number is 888-855-225 and we'd be happy to give

40:15

our two cents. All

40:19

right, let's go straight to the phone lines. We've

40:22

got Trevor in Tacoma, Washington. What's going

40:24

on, Trevor? Hey, thanks

40:26

for taking my call. You bet. Yeah,

40:28

yes. I had a question. My

40:30

wife has been paying off debt

40:33

for the past seven years slowly, but

40:36

we have two items left, which

40:39

is our house and my

40:41

student debt. Okay. Last

40:43

year, I started investing

40:46

through fidelity and

40:48

within six months, I've put in

40:51

about $10,000, pretty

40:53

much from side hustles. Okay.

40:56

And my student debt is

40:58

around that same amount, $10,000.

41:00

It's the last debt I have. I

41:03

feel like I know the answer, but

41:06

I'm wondering if I should pull that

41:08

and pay off the student debt. I

41:10

haven't made really any money in

41:12

the stock market, only being in there for six months.

41:15

Is it just a brokerage account or is it a retirement account?

41:18

I have two. I maxed

41:20

out last year and then I've

41:22

started this year. So in the

41:24

Roth, I have about $7,500 and

41:27

in a just normal brokerage, it's

41:29

about $1,800. I

41:32

would not touch the Roth. It's retirement. And I

41:34

do not want you to start the habit of

41:37

if I need money, I pull it out of my retirement.

41:39

Now, if you had single stock laying around, listen, what's

41:41

in the brokerage is technically up for grabs.

41:44

It's not a whole lot of money, but it's some

41:46

money. What

41:48

I really want to hammer home though is

41:50

the idea of just

41:52

stay the course. It sounds like

41:54

you understood that the plan is for you to

41:56

pause retirement. until

42:00

you finish paying off debt. But it sounds

42:02

like, and I relate to this because when

42:04

you said seven years, everything in

42:06

my body went, I know about that because it took my

42:08

husband and I seven and a half years. And it sounds

42:11

like you kind of got a little bit weary and maybe

42:13

felt like you were getting behind. And

42:15

so maybe you started investing. And

42:19

I just wanna encourage you from this point on,

42:21

listen, I would stop investing and finish paying off

42:23

this debt. Like I said, don't touch your retirement,

42:25

what you put in there already. If

42:27

you wanna pull what's in the brokerage, you can. There's

42:29

no penalty on that other than

42:31

maybe a little bit of tax on it. But

42:33

how much did you guys make it here,

42:35

Trevor? We're

42:38

a single home income. I

42:41

stay at home and homeschool two kids

42:43

and she makes about 70, 70,000. And

42:49

so you guys have been paying off debt for seven years. What

42:51

was the debt you guys paid off and how much was

42:53

it? It was actually my side.

42:55

We got married a few

42:57

years ago and it was all my side

42:59

debt. And it was, oh gee,

43:03

the whole story of me being

43:05

in the military overseas and my

43:07

other significant other, not paying off

43:09

debt. And it just stacked up,

43:11

racked up and it was horrible.

43:14

Gotcha, gotcha, okay. I talked about

43:16

credit cards, repossessed cars. Yeah, so

43:18

you guys have been through it, Trevor.

43:20

I mean, to Jade's point, I'm like seven

43:22

years, but honestly, so I

43:25

get the, you know, there's a weariness there.

43:28

I'm just like, oh my gosh. But what

43:30

you've done though so far, which is one

43:32

of the biggest obstacles for people is to

43:34

change what you believe about money,

43:36

right? There was one set of beliefs that

43:38

you had overseas in the military that got

43:41

you, you know, those choices created an

43:43

outcome that you said, I don't like

43:45

this outcome. So you have been working

43:47

your way right out of this. So I think

43:50

that one of the biggest, again, hurdles, you've overcome

43:52

that is, hey, I'm gonna look at money differently.

43:54

But then you get into the details, Into

43:57

kind of the nitpicky stuff, like we are here at

43:59

Ramsey, where we're like. Has retirement like. There's certain

44:01

things you do for a reason that isn't

44:03

just for the heck of a it's it's

44:05

because of what we've seen over time. And

44:07

this last bit Trevor mean this is like.

44:10

On. The fire know I have even like related to

44:12

the rise of what's the videos on Instagram real on.

44:14

There was. Earning the cars were paid off.

44:16

Now is the way I can do.

44:19

Both. Maybe medical higher payment

44:21

on my student or. Not know

44:23

I think he does. I think you just pause

44:25

you're gonna be okay for their yeah for a

44:27

year older and and you guys make seventy thousand

44:30

and I would even Trevor unlike if there's anything

44:32

I at night that you can go do if

44:34

you can make a side gig of with a

44:36

thousand bucks a month like that's gonna add to

44:38

this them in any donations. And. My money

44:41

came from was side good for daring and

44:43

to worry about. What about. Lot of insert

44:45

do you have anything that you guys from

44:47

does a lifestyle standpoint. It's you can cut.

44:50

Or we've been. We've been taught in the past two

44:52

months of scripture and I good. Good last year and

44:54

a bag and it or not it's that feel better someone

44:56

like your. Limping. A little bit

44:58

to that finish line and I want you to sprint like I

45:01

would. You want you to get there and you're gonna be okay

45:03

if it pauses for a year old. are you guys? Are

45:06

thirty three? Oh. Yeah, you got And sun

45:08

sets got? yeah. I'd I'd say I love walking

45:10

through this. Okay, you said? You're

45:13

investing a little bit now. What percentage are you

45:15

investing? How much a month? Or

45:17

Geminids know from our acts or town

45:19

it's for me to inside Hawthorne still

45:21

around a thousand a month? okay? You're

45:24

investing a thousand a month. Which means obviously

45:26

when you have this debt clear, your have

45:28

that. In more. To.

45:30

Invest, right? So let's just pretend that you

45:32

said right now they're seventy five in your

45:34

Ross. I'll just put it out by now,

45:37

isn't just to be I'm I'm going to

45:39

make this like cel foolproof and let's say

45:41

that every month you do an additional thousand

45:43

dollars every single month after you're at it

45:45

as is of after your out of debt

45:47

and this is I'm going to do like

45:49

a super conservative rate of return as a

45:51

person just for all the hater Aids out

45:53

there to just calm down and let's say

45:55

you retire at thirty three, right? Let's see

45:58

how much. Money that would be for you. Oh

46:00

shit, You're Not retire at thirty three. He has

46:02

Thirty three. How he has. He's.

46:05

Not saying for thirty three years for thirty years

46:07

and thirty young fans are I'm sorry a up

46:09

wait at Rico. Keep a conversation going to get

46:11

my computer's be in day. Out. So he's

46:13

thirty three. And let's say in that

46:15

thirty years. You. Decide that.

46:18

yeah, I'm going to retire at sixty three.

46:20

Yeah, Sixty four. Ah the beautiful thing

46:22

As a you'll see the what the decisions you

46:24

ready made with the Roth once again. Would.

46:27

Not. Completely. Agree

46:29

with this: You still have debts, but the proof

46:31

is is that even if you waited one more

46:33

year, Didn't. Contribute anything to investments

46:35

a retirement. Pay it off right at.

46:38

Went back to. Investing in retirement

46:40

and put money away. And thirty thirty

46:42

three years seed? one point five million

46:44

dollars. And thirty years. And

46:47

are rendered pogba feared south Your so that my

46:49

point is are still going to be just fine.

46:51

Sorry for the delay. My computer was not very

46:53

what I wanted it to do but. That's starting

46:56

at seven thousand dollars. which he said, yep, seventy

46:58

five. And your Roth Right now that's a thirty

47:00

year term. You're you're in your thirties. Now you're

47:02

going invest. You're gonna, You know, we came in

47:04

your sixties. It's a very conservative rate of return

47:07

that I put in your you're going to do

47:09

better than that rate of return to fling, you

47:11

know. And this is a thousand bucks a month.

47:13

Like come on now and then. Fifteen percent of

47:15

your income to you with that seventy thousand, I

47:17

would you guys the say yes, that of that.

47:20

Going. Get out to death that's in

47:22

a be now going to investing in

47:24

that. I'm assuming Nothing changes like you're

47:27

going around more money, You're going to

47:29

have more opportunities like I just want

47:31

you to see. Worst case scenario was

47:33

one point five million dollars that. Oh

47:36

my goodness I'm so excited! I

47:39

feel like. People. Need

47:41

to do this more young people need to run

47:43

out the numbers in stop letting it circle about

47:45

their head and kind of. And or the south

47:47

day I up it's like you're over here. Get

47:49

the stomach ulcer cause you're like I'm getting too

47:51

old and I used to feel that way. My

47:53

husband and I didn't start investing until our mid

47:55

thirties and now I see like we're going to

47:57

be just fine and you're going to be just.

48:00

to work the plan as planned.

48:02

It works every time. This is the Ramsey

48:04

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48:08

current times have shown us anything, it's

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49:24

you like this, tell other folks

49:27

about it. They might have their crime podcast

49:29

that they like but tell

49:31

them about the Ramsey Show. These

49:36

crime podcasts, Rachel I don't get

49:38

it. I'll send you one.

49:40

I don't know if I can watch it. I

49:42

feel like you're listening. You listen. Okay yeah you

49:44

don't want to. It's scary. You see

49:46

you just listen. Oh get ready. I got you something.

49:49

Rachel Cruz loves her

49:51

a crime podcast.

49:54

Jade Warshaw, your other host, is

49:56

careful of them. Then

50:00

I've wondered where part of your your daily routine

50:02

and you listen to a little bit at around

50:04

the Shells and go listen to Larry out of

50:06

your other podcasts. So

50:09

so funny. Well anyway my point was to tell

50:11

you that we appreciate you and keep doing what

50:13

you do. We're gonna go to the phone lines

50:15

where there's Tony and Rochester New York with phone

50:17

on Tony. Point

50:19

Eight I'm so I'm on

50:21

gone because I am quite

50:24

a bit in that. Pounds.

50:26

Down to a point where after

50:28

I pay my bills and descriptions

50:30

and things that are going on

50:33

bomb. As the the amount

50:35

of our credit card debt I got

50:37

it's pretty much takes over the rest

50:39

of the paycheck and bomb and will

50:41

join our manager. Bomb. And

50:43

will.options and into their jobs or the

50:46

car Considering may selling a house such

50:48

a how are you have more than

50:50

one is now that bad that are

50:52

how can intercept so in the house.

50:56

And armies matter. Bring him down

50:58

Iowa. I make about one hundred.

51:01

Thousand. A year and now says

51:03

that including your while a bow. Was

51:05

up is one hundred thousand including your eyes. Masters

51:08

me to see to see work outside. Well

51:10

I act that that's the our household I'm

51:12

out of his his shoes at home of

51:14

him down by I'm the one that's working

51:17

outside much credit card in as have. We.

51:20

Got about one thousand six hundred and twenty six

51:22

thousand in credit card debt. Now.

51:24

In what has gone on? Work so. Yeah, No.

51:26

The oh, that's okay. I can hear your voice.

51:28

Tony, I'm in. It's I'm. That's

51:30

hard. That's really hard work cause what was

51:33

that? The reason for that? Well

51:36

I'm I was out of work

51:38

for or year figure out different

51:40

things I've attempted. Ah,

51:42

something's on my own as well. Or

51:44

one I wasn't able to make enough

51:46

to. Get. Us out or

51:48

else. It'll. Who.

51:51

To be able to sustain a prolonged as are getting

51:54

that us are getting a good guys to. Be

51:56

able to manage the. Bill.

51:59

But. Out. I probably got a job and. Then.

52:02

It's grown because once was. I guess

52:04

there's a point of. The

52:06

have enough that the payments. Get. It to

52:09

get to a point where you can't make. It's

52:12

it's what's left is not enough. Least

52:14

we gotta continue getting more and more

52:16

More more we have many would have

52:18

managed reducing the the enough. Yeah.

52:20

To bomb. So how long have you been in that

52:22

are in this job? That your and now

52:24

on hesitant about. Not about

52:26

a year Okay and then to she

52:29

sides. When. Was the point for you that

52:31

you're like as. I. Got a d some

52:33

different this isn't. This. Isn't working for

52:35

awesome? It's I'm looking at the numbers. I mean

52:37

it is up for years ago or average your

52:39

spouse or wow. We've been wanting to do something

52:41

but it's a. Become quite

52:44

urgent now. So now we're all so much.

52:46

Are you paying every month cemetery thing every

52:48

month towards these credit cards? Or.

52:50

Three thousand five hundred Little more. A thousand and

52:53

Five hundred. Reach three thousand

52:55

And Three Thousand Five Hundred. Okay,

52:57

and his dad minimum payments Sets

52:59

The minimum payments. Wow. And. You

53:01

mentioned a car. And does

53:04

it tell me about the first situation? So.

53:07

We have two cars. Tom one of them

53:09

are and that are in a spend quite a

53:11

bit and repairs and things like that and I

53:13

said well you know what. I'm at

53:15

but out of really nice but of.

53:18

Are they want to have continue and

53:20

and so I have another car that's

53:22

a newer. And it's gets a

53:24

bad as. As I don't I'm

53:26

a i'm I'll loans on them so I'm

53:28

as can I started genuine article I are

53:30

right now at this point okay of was

53:33

others one car them the car that you

53:35

said. You. Didn't it? You.

53:37

Know continue with what did you do with the just to

53:39

own it? Does it just need three perils of. You.

53:41

Sold it so that okay. So now you're

53:44

a one car family. Was. On our

53:46

family for now. Okay, In the car that

53:48

you has. Would. You I wanted and

53:50

what's it worth? It's

53:52

his size is a oh but three thousand

53:54

of them on it is by was the

53:56

same I'm I'm a little more. Serving.

53:59

yourself it's kind of okay the loans a little

54:01

older what the car is worth so do I

54:03

work sell it I don't know I'll

54:05

get my money back yeah you'd be underwater

54:08

in it and there's no you have no

54:10

savings I'm assuming nothing saved anywhere not well

54:14

just a little bit and I want

54:17

to keep very little okay that's all it's what

54:20

I want to ask about I'm sorry I'm gonna

54:22

pry like I'm putting my crowbar in and I'm

54:24

prying out um your wife

54:26

to stay at home mom yeah

54:28

how many actually on the line food is hearing

54:31

hearing us oh hey so you're staying at home

54:38

you're doing you know you're doing some heavy lifting

54:40

on how many kids are you watching and taking

54:42

care of three

54:44

three and what's their

54:46

ages well already

54:48

the oldest one is 11

54:51

uh-huh and there

54:53

is eight and the youngest one

54:55

is six okay so when I'm

54:57

listening to that I'm hearing school-aged

54:59

kids which is great because that

55:01

daycare yeah you know Bill is

55:03

not a thing so

55:05

my question is and you

55:07

know I'm going around this delicately but I

55:09

think there's room that you can work as

55:12

well because right now yeah the money that

55:14

you can bring in is what's gonna break

55:16

this cycle yes

55:19

yes yes I'm just trying to to

55:21

make smart choices like

55:24

I was telling him it's just

55:26

difficult to sit down and like

55:30

in search you know

55:32

like a search for a job that

55:34

it's prudent in terms of knowing

55:38

the hours minimum per hour and

55:40

yeah just with one car right

55:42

now we are

55:45

managing so he takes the car for the

55:47

most part right now and or if not

55:49

the bus it

55:52

is a bit difficult but

55:54

yeah that that is my main goal well

55:56

I always say get I always

55:59

say get age-wise until you get

56:01

the job because right now Yeah

56:06

if you drop the gift off and go work at a bakery

56:08

you know for anything whatever it is

56:10

like go yeah doing something because

56:12

and what's your name can I

56:14

ask we have Tony and and

56:18

I know you know it is

56:20

okay yeah it's not that I

56:22

haven't tried I've actually sure sure

56:26

like with the side

56:28

job like staging yeah yes here's

56:30

the deal you guys I

56:32

know Tony had mentioned or at least it's here on

56:34

our screen one of your biggest

56:37

questions was debt consolidation and yeah

56:39

here's what I wanted so here's the deal

56:41

you guys what's

56:43

going to fix this issue is you

56:46

guys it's not rearranging this credit card

56:48

debt and trying to find a lower interest rate that's not your problem

56:51

the problem is is that you guys lived

56:53

a cycle with your money that got you

56:55

in this problem and in this mess but

56:58

the beautiful thing is yes you were the

57:00

ones that got yourselves in this mess

57:02

but you're the ones that's going to get yourselves out

57:04

of it okay and so listen to each other because

57:06

this is the stress point because you're starting to make

57:08

that turn of saying we're going to do something differently

57:10

she's looking for a job you've sold a car I

57:13

mean you guys are feeling this tension

57:15

you're starting to make these choices you're getting in the

57:17

right direction so stay on the same team because

57:20

Tony's not feeling great about himself and when I

57:22

heard you when you I heard your voice immediately Tony

57:24

I thought he's caring so much

57:26

there's a lot of shame yes there's a lot of

57:28

guilt that you feel Tony like this was my responsibility

57:30

I tried taking care of my family and this is

57:33

what I got us in she is

57:35

supportive she sounds wonderful you know yes I'm going

57:37

to help it but you guys together you have

57:39

to work as a team and stay on the

57:41

line because Austin's going to pick up and we're

57:43

going to give you financial peace University and

57:46

every dollar premium which is our budgeting app and

57:48

you guys sit down together

57:50

go through these lessons learn

57:53

the basics because debt consolidation that's not

57:55

going to be your answer not the option you are

57:57

your answer you guys can do this we take care

57:59

of you these calls every day and hear people

58:01

that do their debt free screams. I mean, Jade is

58:03

a living testimony of this. You guys

58:05

can do this. It's going to take a long time.

58:08

It's a lot of sacrifices, but it is possible. So

58:10

I'm so glad you guys call up today and we,

58:12

we wish you nothing but the best. You guys can

58:14

do this. Hey,

58:21

you're listening to the Ramsey show. I'm Jake Borsha. This

58:23

is Rachel Cruz to my right. And we're

58:25

taking calls about your life and your money

58:27

just came off of a call. And you

58:29

know, honestly, we get calls all the time

58:31

of people, you know, they're in a hard

58:34

financial situation and you know, we're

58:36

asking questions and mining around to kind of figure out

58:38

what's the core of the problem? Where'd the problem come

58:40

from? How can we go about a life that we're

58:42

not repeating those mistakes again? And you kind of do

58:44

have to dig in and each individual

58:46

kind of has to go back and do

58:48

their own digging so that they're figuring out

58:51

what happened here. Like it's

58:53

good to want to solve a problem, but you also

58:55

have to go back and go, okay, but what happened?

58:57

Like what caused me to act in that

58:59

way? What did I do that caused us to kind of

59:01

spin out? And we try to help you

59:03

guys with that a little bit. And some of that is personal

59:05

work. But one of the themes that

59:07

I noticed, Rachel is, and I

59:10

get this, like, I, this is not me

59:13

pointing a finger. This is just, I think, a

59:15

human nature thing that we have to guard against,

59:17

which is, you know, everybody has

59:20

work in the words of King, King Coleman that

59:22

they were created to do, to do, and everybody

59:24

wants to find the work that they're created to

59:26

do and the thing that gives them life and the

59:28

thing that gives them energy. And I'm all for that. You

59:30

know, you want to be excited to go to work and

59:32

feel like it's time well spent. But

59:34

I do find that a lot of

59:37

times we enter into seasons of life that we

59:39

are doing work that we don't love

59:42

and it's not the job and it's

59:44

not right, the one that we were

59:46

hoping for. And I you'll hear

59:48

me say it time and time again, do

59:50

a job until you get the

59:52

job. And so in the spirit

59:55

of what I think is just a consistent

59:57

thread that we see throughout and even that I say

59:59

throughout. times in my life is five

1:00:02

reasons to get any job to

1:00:05

go. Just to get any job. All

1:00:07

right. So number one, some

1:00:09

money is better than no money. That's

1:00:11

right. Right. Some money coming in is

1:00:13

better than no money. When COVID hit,

1:00:15

we were in the cruise industry and

1:00:18

ain't nobody going on cruises and

1:00:20

the live entertainment industry and wasn't nobody

1:00:22

going to a live event. So I

1:00:25

had to get a job and my

1:00:27

husband had to get a job. I

1:00:29

had to get a job that I

1:00:31

did not like that to be honest.

1:00:33

I was over fully, fully, fully overqualified

1:00:35

for, but we didn't want to just

1:00:37

burn savings. So it's like bringing some money. Like

1:00:40

we were debt free. We have hardly any expenses.

1:00:42

Any money that we bring in is going to

1:00:44

be great. So we did that and it didn't

1:00:46

feel good. And let me just say, I don't

1:00:48

necessarily believe that work is beneath people, but in

1:00:50

some days it felt like it was beneath me.

1:00:53

Like let's just be honest about that. Somebody needs

1:00:55

to say it. You know, some of you feel

1:00:57

like, listen, I shouldn't

1:00:59

be working at McDonald's. Okay. I get that

1:01:01

you feel that way, but you don't have

1:01:03

any money. So go work at McDonald's. All

1:01:05

right. And listen, just be happy that

1:01:08

McDonald's is open because back in the day, COVID,

1:01:10

it wasn't even open. So anyway, some

1:01:13

money is better than no money. Rachel, the next

1:01:15

one I have here is your spouse needs

1:01:18

to see who you are. And

1:01:21

if you're a husband or a wife and you're

1:01:24

facing a very hard time in your marriage, go

1:01:26

get a job because when they

1:01:29

see you at home and you're not working

1:01:31

and they feel like they're taking on the

1:01:33

burden of that, you can help take

1:01:36

some of that off. So go get

1:01:38

a job. And then that might encourage your spouse

1:01:40

to go get a job. Like that

1:01:42

is good. Your spouse will feel like, I remember

1:01:44

when I was a kid, one of like my

1:01:46

dad, he just was always working. And I was

1:01:49

like, one thing about my dad is like, this

1:01:51

man is going to work. Like, and it just,

1:01:53

it builds a sense of security in your kids

1:01:55

and in your family. Yeah. Go get a job

1:01:57

and, and no one's going to be going, well,

1:02:00

but my dad only works here. No one is saying

1:02:02

that. They're going, listen, my dad goes out and works

1:02:04

hard every day. That's right. Go get

1:02:06

a job. All right, number three, you'll

1:02:09

learn what you like and what you don't like. Yes,

1:02:11

by testing out all different things, yeah. Listen,

1:02:14

I don't like food service. I don't like

1:02:16

call center. I don't really

1:02:18

like working with animals, even though I like animals.

1:02:22

Yeah, I like cooking. I don't like making wedding cakes.

1:02:24

I've done it before. It's a lot of work. I

1:02:26

can tell you, Rachel Cruz, the things that Jade does

1:02:28

not like doing. Okay,

1:02:31

and now I know the situations

1:02:33

that I do enjoy working in. So

1:02:35

you'll learn what you like, you'll learn what you don't like. Number

1:02:38

four, you'll be productive. Yes.

1:02:41

And there's just something to be said for, all

1:02:43

right, I'm getting up and leaving and doing something.

1:02:46

Yeah, we're not leaving, but staying at home and

1:02:48

being on your computer, doing something. Yes. Something,

1:02:50

you're getting out of your bed, even if you're putting on

1:02:53

sweatpants and going up and putting your little headpiece on and

1:02:55

doing your call center job. I'm almost talking about it like

1:02:57

I know it. Okay,

1:02:59

and then finally, it will build

1:03:01

confidence in you because the

1:03:03

longer you go without a job, the

1:03:06

more you wonder if you'll ever be able to get a

1:03:08

job. So to just go from

1:03:11

one job to another says, listen, I've got

1:03:13

some confidence. Like I can say, when I

1:03:15

go to my next interview, I can say

1:03:17

that I'm currently working. Or I can say,

1:03:19

here's the experience that I've had. Or at least

1:03:22

feel it on the inside. So

1:03:24

there you have it, five reasons to

1:03:26

take any job before you get the

1:03:28

job. And that was free, ladies

1:03:31

and gentlemen. Free game. Right, from Jade Warshaw. That's

1:03:33

amazing, Jade. I mean, seriously, because I do think

1:03:35

that there is this feeling, and especially if you've

1:03:37

been in a certain industry or you kind of

1:03:39

have your line of sight of like, this is

1:03:41

what I do, and you get

1:03:43

laid off or you're in a bad situation, you

1:03:45

quit, whatever the reason is. And

1:03:49

you still have that kind of narrow focus

1:03:51

of this. And to your point, when

1:03:54

Bill sets you paid, open this

1:03:56

horizons and go, just do something. Yes. And

1:03:59

one door leads. to another and you never know.

1:04:01

You might be taking someone's

1:04:03

burger order and you meet the

1:04:06

person taking the order. They have a situation

1:04:09

that they tell you about and at least

1:04:11

the next thing you just, you never ever

1:04:13

know what's behind the door. So don't count

1:04:15

it out and think that you're above it

1:04:17

or think that it's, just keep going. Anyway,

1:04:20

I digress. I got to take a deep breath. I love

1:04:22

it. We got to go to Brenda in Washington DC. Sorry

1:04:24

Brenda that you have to come after that but what's going

1:04:27

on in your world? Hi.

1:04:29

So me and my husband are looking

1:04:31

to buy a house. We want to

1:04:33

know if we're even there

1:04:35

yet and if we are what steps

1:04:37

financially we should take to get there

1:04:40

as far as pausing our

1:04:42

investments, continuing to invest

1:04:44

or what we should

1:04:47

do. Well

1:04:50

what we look at Brenda is

1:04:52

a series of steps that we want

1:04:55

completed before you go and

1:04:57

purchase your first home. So are

1:04:59

you, how much steps do you guys have? We

1:05:03

have about I think 12,000 total

1:05:06

for our cars and that's it. And

1:05:09

that's it? Okay perfect. And do you guys have

1:05:11

any money saved? We

1:05:13

have about 55,000 in savings. Okay

1:05:16

that's great. How much do you guys make a year? Combined

1:05:20

we make around 220 before tax because

1:05:22

I don't know what a disaster to

1:05:24

be honest. Yeah okay perfect. That's a

1:05:27

great income. Okay

1:05:29

so if I were you Brenda I would pay

1:05:31

off your cars

1:05:33

today with the money that you guys

1:05:35

have saved in that $55,000 account and then the

1:05:40

remaining I would look to see how

1:05:42

much your expenses are a month

1:05:45

because what we say is after you pay

1:05:47

off all your consumer debt look

1:05:49

to get a three to six months of expenses

1:05:51

saved in a fully funded emergency fund and you

1:05:53

can put that money in a high yield

1:05:55

savings or a money market and

1:05:58

for you guys you may want to put that in the box. some

1:06:00

more towards savings once you pay

1:06:02

off the cars or maybe that's enough for you guys but I

1:06:04

want you guys to look at your own budget and

1:06:06

figure out okay if we need probably three months. Do

1:06:09

you guys have kids? No, we do

1:06:11

have a kid on the way. That's part of our... Oh,

1:06:14

okay. ...kind of the way we want to buy a

1:06:16

house too. That's so great. Well, congratulations. What do you

1:06:18

do? Yeah, thank you. September.

1:06:21

In September. Okay, that's awesome.

1:06:23

So yeah,

1:06:25

so I wouldn't push the

1:06:27

timeline of the home with

1:06:31

or without the baby, okay? So meaning like I wouldn't feel

1:06:33

like, oh my gosh, I have to get in before the

1:06:35

baby or what I wouldn't

1:06:37

let the baby's timeline dictate your house timeline.

1:06:39

I want your money to dictate the house

1:06:41

timeline. So again, I want that

1:06:43

fully funded emergency fund and honestly, Brenda, with

1:06:45

the baby on the way, you know, starting

1:06:47

to look for a home, I would feel

1:06:49

comfortable around that five to six month mark

1:06:52

for an emergency fund and just

1:06:54

making sure you guys have plenty of cash set

1:06:56

aside and then you want to start saving up

1:06:58

for your down payments and I

1:07:00

would say to put at least five percent down

1:07:02

and make sure your payment is no

1:07:04

more than 25% of your take-home pay.

1:07:08

So when you run those numbers, you guys can kind of

1:07:10

look. Now you're in the DC

1:07:12

area, so you're in an expensive part

1:07:15

of the country real estate wise. So

1:07:17

expectations and our formula, you know, we get

1:07:19

knocked on it sometimes. It is more on

1:07:21

the conservative side, but I don't want

1:07:23

this house to be the thing that stresses you guys out.

1:07:26

So it may take maybe another year or two or depending

1:07:28

on, you know, what kind of house you guys are looking

1:07:30

at to really kind of slow down

1:07:32

and say, yep, let's get in a

1:07:34

good position, have a good down payment and

1:07:37

making sure that it's a reasonable

1:07:39

payment within our income to make sure

1:07:41

to pull the trigger. So I hope that's helpful,

1:07:43

Brenda. And if you go to www.RamphewSolutions.com, we

1:07:45

have tons of articles and

1:07:47

free content on home purchasing, so make

1:07:49

sure to check that out. All

1:07:55

right, let's cut to the chase. It's easy

1:07:57

to get discouraged about crazy house prices. interest

1:08:00

rates. But when you have the right

1:08:02

real estate agent to help you buy

1:08:04

and sell the right way, you'll have

1:08:06

confidence to make smart decisions. Ramsey trusted

1:08:09

agents aren't just experts who guide you

1:08:11

through buying or selling, they're someone you

1:08:13

can trust to have your back from

1:08:15

the first call to closing day. Find

1:08:17

a Ramsey trusted agent near you at

1:08:19

ramsesolutions.com slash

1:08:22

agent. ramsesolutions.com/agent.

1:08:27

You're listening to the Ramsey show. Hey,

1:08:29

by the way, a couple of days ago, we

1:08:31

did a Q&A after the

1:08:33

Ramsey show all on budgeting.

1:08:36

And it was it was really cool. It was

1:08:38

live. It was George and I here in the

1:08:40

studio. It's still on the YouTube page if you

1:08:42

want to go and check that out. If you

1:08:44

have any questions about our budgeting app EveryDollar, which

1:08:46

is the best budgeting app in the world, we

1:08:49

did a live Q&A where we had EveryDollar pulled

1:08:51

up on the screen. George and I

1:08:53

were just kind of little characters in the corner so

1:08:55

you can really see how the budgeting app works. And

1:08:58

we answered Rachel, gosh, probably

1:09:00

eight or ten questions in depth.

1:09:03

And I mean it's questions that most of you have all

1:09:05

the time. How do I do syncing funds? What do I

1:09:07

do if I get paid four times a week? Do

1:09:09

I do my budget by week? Or how do I do

1:09:11

it? We answered all those questions. We talked about, gosh,

1:09:14

paying off debt. So many just

1:09:17

everyday questions. So if that's something you're interested in,

1:09:19

find it on our YouTube page. I'm sure they'll

1:09:21

pull it up at some point or maybe even

1:09:23

after the segment. So stay tuned for that. It's

1:09:26

so valuable. There it is. It was really, really

1:09:28

cool. I think like over, gosh,

1:09:31

the numbers on it were crazy. I'm not gonna sit here and

1:09:33

try to quote it. But my point is go watch it

1:09:35

because it was super duper valuable. And I'm sure that

1:09:37

we'll do that again. I don't know when but it

1:09:40

was super valuable. So go in there EveryDollar

1:09:42

again. Such a great budgeting tool. But

1:09:44

like let's be honest, there's sometimes questions that you have

1:09:47

and things that you want to know about it. And

1:09:49

so we're here to answer those questions as

1:09:51

well as questions about your life and your money, which we're

1:09:53

gonna do. The number is 888-825-5225. We're here to help and

1:09:55

let's go to Jerry and

1:09:59

Phoenix, Arizona. What's going on Jerry?

1:10:01

How you doing? Thanks

1:10:03

for taking my call. You're welcome. How can we

1:10:05

help? My question is

1:10:07

I'm 66, my wife is 71. She's

1:10:10

been diagnosed and said dementia

1:10:12

for three years. I'm sorry. Didn't

1:10:14

supposed to happen to go into a

1:10:17

long-term care facility. I've

1:10:19

done the baby steps. I have like 5,000 in

1:10:21

emergency fund and 20,000

1:10:24

in savings and investing. My

1:10:26

house is paid for but my question

1:10:29

is should I sell my house

1:10:32

to pay for her long-term care

1:10:34

which I can't afford on my

1:10:36

income. How much

1:10:38

does the long-term care, how much is it costing you?

1:10:40

Like what's the cost per month per year? Cost per

1:10:43

month for long-term care is about seven thousand

1:10:46

a month and I take home

1:10:48

only five thousand with my retirements. Okay

1:10:52

and are you retired Jerry then? Yes I'm

1:10:55

retired military disability and

1:10:57

social security. Okay okay so

1:11:02

tell us more about your your

1:11:04

home situation. Okay I own my

1:11:06

home it's worth about seven hundred thousand.

1:11:09

I could sell the house here and

1:11:12

move into a smaller house for like

1:11:14

four hundred thousand and believe me about

1:11:17

two hundred and fifty thousand and I

1:11:20

could use that to pay monthly on

1:11:22

long-term care, memory care, that

1:11:25

would only last for maybe two

1:11:28

years or three years. Assuming it's

1:11:30

not invested. What's that? The house? No.

1:11:32

The 250,000. Are you just thinking of it as

1:11:34

a lump sum as it is? Yeah

1:11:37

it would just be my equity

1:11:39

out of the house after

1:11:41

I sold it. And

1:11:43

tell me again sorry I was kind of writing

1:11:45

down some things. Tell me again what you have

1:11:48

in retirement as it stands? Okay military

1:11:50

retirement, military disability, social

1:11:52

security and my wife's

1:11:54

social security and it adds up to

1:11:56

about 4800 a month. But

1:12:00

what are the nest eggs? Is there a nest egg anywhere in

1:12:02

there? I've

1:12:05

got 20,000 in the

1:12:07

savings account and 5,000 in

1:12:09

another savings account from my emergency plan.

1:12:12

Okay. Let me think

1:12:14

here. I've been trying to get everything right and

1:12:16

how it's paid off. Yeah. Getting

1:12:19

there but then this happens. Yes, I'm

1:12:21

so sorry. And

1:12:23

Jerry, I mean, I'm assuming because you

1:12:25

called and asked the specific question. I mean, so she

1:12:27

will need to be in a... Yeah.

1:12:31

She didn't go to a point where I'm

1:12:34

not going to be able to take care of

1:12:36

her at my age. I'm doing full-time care taking

1:12:38

for her right now but I'm

1:12:41

just trying to look into the

1:12:43

future and I know it's not going to last

1:12:45

forever. Yeah, I know. Oh, I'm so sorry.

1:12:49

Have you looked at other options at other,

1:12:52

whether it's homes or facilities or

1:12:54

even in home care at

1:12:56

all? Yeah,

1:12:59

I have looked at it. It's a little

1:13:01

bit cheaper but not very much. It's still

1:13:04

going to be about 5,000 more

1:13:06

than I take home. So... Yeah.

1:13:10

In this case though, a 2,000 difference is a big

1:13:12

difference from a 5,000 to 7,000. So

1:13:16

it is something to consider. Okay. Yeah,

1:13:19

I've thought about that. It's

1:13:21

a house that I have now. Well,

1:13:25

I've had to sell this house as well. That's the only thing I

1:13:27

get when I drive to be able to have

1:13:29

money to do anything. Yeah,

1:13:31

I mean, I do think so. Yeah, it's

1:13:33

a large asset. It's

1:13:36

paid off which is just incredible and

1:13:39

I think it is, you know, you

1:13:41

need money for her right? And

1:13:43

so you do have a

1:13:46

stream of income in a sense with this, I

1:13:48

mean, not income but you have the ability to

1:13:51

get some cash if you do sell this

1:13:54

home. What would

1:13:56

it look like? You ran one scenario

1:13:58

where you sell this $700,000. $200,000

1:14:00

home, you take $250,000, you invest it

1:14:02

well, and you're pulling off of it for a number

1:14:04

of years to only fund it for so

1:14:06

long. But that's with you buying a $300,000

1:14:08

or $400,000 house. Is

1:14:11

there any situation, it's just going to be you in the

1:14:13

home, possibly, depending on which

1:14:15

route you go. Is there a

1:14:18

route where you buy

1:14:20

something far less expensive, like

1:14:22

a condo, as opposed to

1:14:25

a full-size house, even though it would

1:14:27

be downsizing, but something even smaller where you've

1:14:29

got a larger nest egg that you can

1:14:31

invest and draw for a longer period of time? That's

1:14:35

always an option. I know in the Phoenix

1:14:37

area, even condos are getting

1:14:40

up there price-wise. Yeah,

1:14:42

for sure. Yeah.

1:14:45

Yeah, I mean, Jerry, I'm so sorry. I

1:14:48

mean, I probably would, yeah, I would look to

1:14:51

probably sell. And I

1:14:53

think you do have to map out. Because

1:14:55

what I don't want to happen is

1:14:58

you sell this paid-off asset,

1:15:00

and there's nothing left

1:15:03

for you. There's nothing left for you, or you

1:15:05

end up running out, and then you have to go to another

1:15:07

option, right? And

1:15:09

so, yeah, I would

1:15:11

run the numbers pretty tightly. I probably wouldn't

1:15:13

rush in to buying something new right now for

1:15:15

you. And

1:15:18

I would look at other options for care as

1:15:20

well. I

1:15:23

mean, obviously, we want the best for our loved

1:15:25

ones, for sure. But that industry

1:15:27

can vary so, so much. And you guys,

1:15:29

obviously, you don't have, she doesn't have long-term

1:15:32

care insurance or anything, right?

1:15:35

No. Okay. That's something I

1:15:37

never planned for her. I wish I would have. No, I know.

1:15:39

I know. Well, and she's so young. I'm

1:15:42

so sorry. Would you invest the money if

1:15:44

you sold the house and then tried to

1:15:47

take the money out of the investments? Or

1:15:49

how would that work? I

1:15:51

probably would try to take

1:15:53

away as big a chunk as possible. That's why I was saying, is

1:15:55

there a way that you can do a situation where you're

1:15:58

taking of the

1:16:00

sale of this and investing it, because then what you're

1:16:02

drawing off of it is much less, and you would

1:16:05

only draw off what you needed to fund

1:16:08

this since you already have

1:16:10

some income, of course, coming in from all of your

1:16:12

different retirement options. You wouldn't have to

1:16:14

pull much. I mean, we're talking about, you

1:16:16

said you bring in 5,000. This is an

1:16:18

additional 7,000 to 5,000, so it'd be coming

1:16:21

up with a retirement option where it allows you to

1:16:23

pull off 5,000, and you're

1:16:26

dwindling that nest egg far slower than if it

1:16:28

was a $250,000 nest. Going

1:16:31

in with 600,000 or 700,000 is a lot different than

1:16:33

going in with 250,000. So

1:16:37

to Rachel's point, I hate the

1:16:39

idea of you being a homeowner and then

1:16:41

you not being a homeowner anymore, but I

1:16:43

would love if you worked with a professional

1:16:45

to see what your options are, because A,

1:16:48

I want you to be able to take care of her, but B,

1:16:50

you're not getting any younger either, so there's

1:16:53

gotta be a situation where you're covered as

1:16:55

well, and that'll just, at the very least, having

1:16:58

your options will really just help give

1:17:00

you peace about, okay, this is what I

1:17:03

know I can do. Here are my options. It's

1:17:05

not floating around in my head, and

1:17:07

being able to choose between a couple of things on

1:17:09

paper as opposed to just thinking, all right, this is

1:17:11

my only choice, I can only do X. That's

1:17:14

right, that's right. Right,

1:17:16

so that makes sense. Talk to

1:17:18

a fellow investor. Yeah,

1:17:20

we have SmartVestor Pros. You can

1:17:22

hop on ramseesolutions.com and

1:17:25

check out our SmartVestor Pros, and they're gonna help

1:17:27

you really see, okay, here's what

1:17:29

we can do, and they're gonna shoot you straight

1:17:31

and tell you what your options are, and again,

1:17:33

that's gonna help give you a very clear picture

1:17:35

of what your choices are

1:17:38

moving forward. And how to stretch this money out

1:17:40

as long as possible, Jerry, right? I mean, I

1:17:42

think that's gonna be the goal to make her comfortable,

1:17:44

to make you feel good about the situation, but how can

1:17:46

you do that while balancing you

1:17:48

have a chunk of money, and how

1:17:51

can we get that to go as far

1:17:53

as possible? Yeah, tough stuff,

1:17:55

but there are options, and the more knowledge

1:17:57

is power. That's what I was trying to

1:17:59

get. to at the end of the day knowledge

1:18:01

is power. So go out there and see how

1:18:03

those smart investors can help you. This is the

1:18:06

Ramsey Show. Live

1:18:11

from the headquarters of Ramsey Solutions, it's

1:18:13

the Ramsey Show where we help people

1:18:15

build wealth, do work that they love

1:18:17

and create actual amazing relationships. I'm your

1:18:19

host Jade Borsha joined by your other

1:18:21

host for the day Rachel Cruz taking

1:18:23

your calls all afternoon long. Your life,

1:18:25

your money, we want to hear about

1:18:28

it. The number is 888-825-5225 and

1:18:32

we will get into it. So come

1:18:35

ready because we're going to give you our thoughts and

1:18:37

our advice on it. Alright, so let's go

1:18:40

to the phone lines where there's Vanessa in

1:18:42

Dallas, Texas waiting. What's going on Vanessa? Hi

1:18:46

ladies, thank you so much for your time today.

1:18:48

No problem. Absolutely. How come you're here? Glad

1:18:50

to hear. I'm so glad it's the two

1:18:53

of you because I really, really want your opinion. I

1:18:55

decided to date two weeks ago. Congratulations.

1:18:59

Thank you so much. We don't

1:19:01

have a date yet. We both

1:19:03

rent separately. We're both completely out of debt,

1:19:05

no secret credit cards, nothing like that. And

1:19:08

I was just curious, what

1:19:10

should we prioritize first? I'm really, I'm

1:19:12

one of those soon to be brides

1:19:14

where I care more about getting into

1:19:16

a home rather than a very large

1:19:18

expensive wedding and I just, I feel

1:19:20

like I'm suffering from paralysis of the

1:19:22

analysis and I don't really know where

1:19:24

to go from here. Okay,

1:19:27

good question. Oh my gosh. So

1:19:29

for you guys, the wedding, is

1:19:32

it, is it you guys paying

1:19:34

for it? You and your fiance? Yes,

1:19:36

just us. Okay. And how much do you guys make a year? We

1:19:40

both make 65 respectively.

1:19:42

So altogether 130. 130,

1:19:44

okay. But we haven't combined any

1:19:46

finances yet. Yes. Oh, you're good. I swear

1:19:48

we're doing this right. I know. I love

1:19:50

it. Okay. Do you

1:19:52

guys have money saved? What would be the money saved

1:19:55

to that if you were to combine savings? Not like

1:19:57

you're going to, but if you were, what would that

1:19:59

be? At this

1:20:01

point, we both have a fully funded six

1:20:03

month emergency fund and that is it. We

1:20:07

paid off all of our debt, saved up

1:20:09

Baby Step 3, all of that and then

1:20:11

he popped the question. So

1:20:13

we're basically starting from

1:20:16

Baby Step 3 B slash wedding funds.

1:20:18

Yeah. So you both have a six

1:20:20

month emergency fund separately? Correct.

1:20:23

Awesome. Okay. So

1:20:25

how much is in yours? How

1:20:27

much is in his? Mine

1:20:30

is simply make the same amount of

1:20:32

money. Like it's right in the neighborhood

1:20:34

of about $20,000. Each of you has.

1:20:37

Okay. Correct. Okay. That's

1:20:40

great. Yep. And I would

1:20:42

leave that alone. Yeah. I would

1:20:44

keep that as is and okay.

1:20:46

What is his take? Is he

1:20:48

more on the house side or is he at all

1:20:51

have any, I don't know if like dudes don't really care

1:20:53

about the wedding as much usually. Yeah, I would think so.

1:20:58

He's kind of torn as well because

1:21:00

he was raised Catholic. So

1:21:03

his family's approach to everything is like try to get

1:21:05

married in the church, which is I know is around

1:21:07

like 10 to $15,000. But

1:21:11

if it, I mean at the end of the day, we're both sort

1:21:13

of like, what if we just went down to the

1:21:15

courthouse and could be done with it then? When

1:21:19

you said that, like are you saying that the church is

1:21:21

more expensive than like another venue? Because

1:21:23

I always feel like the church route is less expensive

1:21:25

than like a ballroom, right? So

1:21:28

the church comes with a lot of like

1:21:30

prerequisites that you have to go through like

1:21:32

marriage counseling, which is wonderful and

1:21:34

like things like that. I

1:21:37

think it just sort of as like all encapsulated is

1:21:39

about 10 to $15,000. Like

1:21:43

we would be able to do it probably

1:21:45

for that much money. Okay, but you guys

1:21:47

don't want to do that necessarily. Not

1:21:50

necessarily. Okay. And you don't

1:21:52

have to. Yeah. I would lean

1:21:54

on what you guys want. And it sounds like

1:21:56

Vanessa, unless I'm mistaken that you

1:21:59

both lean to. like hey let's, I mean

1:22:01

you could do a lope, you could go step up

1:22:03

from a lope, get the license, go have a great

1:22:05

party. Yeah, like an engagement

1:22:08

party. Yeah, great reception at

1:22:10

some date, later

1:22:12

in the future. But

1:22:14

it sounds like your priority is because of how, I

1:22:16

mean I can tell how focused you guys are, is

1:22:19

really looking towards the future and looking at

1:22:22

like hey what's gonna last this longer and

1:22:24

saving up more for a down payment on

1:22:26

a home is quote

1:22:28

unquote technically a better financial investment. I

1:22:30

won't necessarily say emotionally and all the

1:22:33

things, but like that's. I do think whatever

1:22:35

you choose, you have to make it a memory.

1:22:37

Like you have to. Yes. Do

1:22:39

something that makes it like special.

1:22:41

Like if you say okay we're just gonna

1:22:44

go down to the courthouse, right now in

1:22:46

your life you're really focusing

1:22:48

on the financial thing. But there might be a

1:22:50

point later on where you see

1:22:52

something or something smart. You're like man I wish I had

1:22:55

gotten addressed. I wish I had done a couple of things.

1:22:57

Yes. There is part of

1:22:59

that that I think that she should include or that

1:23:01

you should include Vanessa even though, even if you choose

1:23:03

to go like the do

1:23:05

the least route. Still have a

1:23:08

beautiful dress, still do something that's going to

1:23:10

create a memory in your mind where later

1:23:12

on you will look back and not feel

1:23:14

like you missed out because you still did.

1:23:16

Yeah. And it is interesting because

1:23:19

these types of situations and you could

1:23:21

probably put vacation in this realm that I'm talking

1:23:23

about or other things. It is

1:23:25

so personality driven. I had a cousin and

1:23:27

they went to Washington, literally went to the

1:23:29

top of a mountain, had a pastor do

1:23:31

it and they were done. That's cool. Because

1:23:34

that was like their thing and they're like that's all we want. We don't

1:23:36

need a bunch of people around, we're good. And

1:23:39

then for me I love a good party and

1:23:43

I love dressing, I love all the things.

1:23:45

So I'm like I would tend to lean

1:23:48

which I did. I

1:23:50

enjoyed my wedding and I loved it. But

1:23:53

all that to say, your personality

1:23:55

and what you guys want and what you

1:23:57

guys value is gonna drive this. Maybe

1:24:00

Vanessa would be a fun exercise to write down

1:24:02

maybe three things for you in the wedding category

1:24:04

that you would genuinely love

1:24:06

to have and maybe that's the

1:24:09

dress or maybe that's a... That's

1:24:12

actually a really good idea. Yeah, it is. The

1:24:14

idea of what three things are important to you,

1:24:16

what three things are important to me and see

1:24:18

what we meet in the middle. You guys may

1:24:20

be very similar in it and we've talked to

1:24:22

so many people on the show, they do it

1:24:25

so inexpensively. Have a

1:24:27

great time and then they write off in the sunset

1:24:29

and do it and then we know some

1:24:31

people too that are like, notice this is an

1:24:33

important day for us, we really want to take the most

1:24:35

of it and we're going to save, put

1:24:37

more money here and we'll worry about the house in

1:24:40

two to three years. I

1:24:42

don't think there's a right or wrong honestly. I think

1:24:44

going into debt or making decisions

1:24:46

like that I think will

1:24:48

put you guys back but I really think

1:24:50

Vanessa, lean into what you guys both

1:24:53

want, not what everyone else around you is

1:24:55

saying. So true. Listen, there's

1:24:57

two... Like thinking towards

1:24:59

the future, there's two ways to think of this. Number

1:25:02

one, Rachel, I think

1:25:04

in some ways I'm like you which I

1:25:06

like a good party, probably not to the

1:25:08

extent because I love my wedding. I

1:25:11

have great memories of my wedding. It's not something I

1:25:13

think of all the time and so I do like

1:25:15

to... When people call in,

1:25:17

I do like to call out like, listen, it is one

1:25:20

day and you're not going to think about it all the

1:25:22

time. That's right. The other side of that is Sam

1:25:25

and I are big on like renewing

1:25:27

a vows. So it's like if you

1:25:29

don't do everything you want to

1:25:31

do the first go round, listen, in 10 years, renew

1:25:34

your vows. It'll give you something to

1:25:36

work towards. My husband and I did a vow

1:25:38

renewal at 10 years and we're going to do

1:25:40

another one at 20 years and each one will

1:25:42

be nicer and better. Come on. Listen,

1:25:44

so just understand like there's... You

1:25:47

have room to go up and... That's

1:25:49

a great point. Yeah. That's a great

1:25:51

point. I love it. Congratulations,

1:25:53

Vanessa. I feel like you guys will make

1:25:55

the right decision. I'm not worried about you guys.

1:25:58

You're pretty. Pretty straight. the

1:26:00

straight line when it comes to the money.

1:26:02

One hundred percent. Do you remember there was

1:26:04

a Netflix show that was like the

1:26:07

people had the opportunity to choose between a house

1:26:09

and a wedding. I think

1:26:12

it went $10,000 or $30,000 on a house or a wedding. It was

1:26:14

a great concept and that's basically what that call

1:26:16

was. But do remember, your wedding is one day.

1:26:18

Your marriage is a lifetime. So do

1:26:21

the marriage counseling beforehand. Do it in a

1:26:23

year. All the same, it is one day.

1:26:25

So don't get too caught up

1:26:27

in it. This is the Ramsey Show. What's

1:26:33

up guys? It's Jade Warshaw here. Now, I want

1:26:35

you to take a moment and dream with me

1:26:37

right quick. Imagine a life where you don't have

1:26:39

to feel stressed about money anymore. Got it? So

1:26:41

here's the deal. That life is possible for you

1:26:44

and your first step is to get on a

1:26:47

budget. Budgeting helps you make a plan

1:26:49

for your spending so you know that

1:26:51

you're covered all month long. And the

1:26:53

best way to budget is with our

1:26:55

budgeting app, EveryDollar. You can get started

1:26:57

for free right now at everydollar.com or

1:26:59

download it from the App Store. That's

1:27:01

everydollar.com. All

1:27:04

right, we're looking for the Ramsey Show. I'm Jade Warshaw.

1:27:07

This is Rachel Cruz, host of the Rachel

1:27:09

Cruz Show on YouTube if you happen to

1:27:11

be on there. Also, Smart Money Half the

1:27:13

Hour is a great one. Listen

1:27:16

Rachel, this came up

1:27:18

several months back. I saw an article

1:27:21

where they were just talking about more

1:27:23

and more people drawing from their 401Ks

1:27:25

and from their actual retirement to

1:27:28

cover month to month expenses. And of course,

1:27:30

we've all seen in the news the extremes

1:27:32

where people pull from their 401K to go

1:27:34

see Beyonce or to go see Taylor Swift.

1:27:37

Right, right, right. But don't do that. That's

1:27:39

terrible. But there's a lot of

1:27:41

folks out there who are kind of facing that

1:27:44

paycheck to paycheck cycle. They're feeling the stress and

1:27:46

the strain of their money and they

1:27:48

don't know where else to go. And they're thinking,

1:27:50

is it better? I don't want to put this

1:27:53

on a credit card or I don't want to take out

1:27:55

more debt. Here's money that's my money. Maybe

1:27:58

I should take out from this money. and

1:28:00

I can make my situation better. Matter of fact, the

1:28:02

guy called the show the other day, he

1:28:05

had just had his taxes done, and the

1:28:07

fee for the taxes was $300, but

1:28:09

his return was only $100, and he was like, oh

1:28:12

crap, I thought I was gonna be

1:28:14

able to take some of the money from my return,

1:28:16

and he's thinking, maybe I'll just go to my, matter

1:28:18

of fact, the tax guy, not one of our trusted

1:28:20

pros, but the tax guy that he was working with

1:28:22

told him, hey, why don't you go to your 401k

1:28:25

and take out a loan. So people are

1:28:27

just tossing us around as an option, like

1:28:30

it's just nothing here. And

1:28:33

I need people to understand that if you withdraw from your

1:28:35

retirement, you're gonna have to pay a 10% penalty

1:28:37

on that money that you take out. And by

1:28:39

the way, if you happen to draw from your

1:28:41

401k, if you

1:28:43

lose your job, that money becomes due

1:28:47

like almost immediately, and you've got a

1:28:49

year to pay it back before you

1:28:51

start facing more fees and penalties. So

1:28:53

this is more serious than

1:28:56

what people really are drawing into

1:28:58

it. It says,

1:29:01

I'll get to that part in a minute, but what I want people

1:29:03

to, I read an article that said the average withdrawal, Rachel, is

1:29:05

about $5,000. Like people

1:29:07

aren't looking to get $30,000. It's

1:29:11

not tens of thousands. No. On average,

1:29:13

it's five. It's $5,000, and you know what I figured

1:29:15

out, Rachel? That if you took

1:29:18

a less than average car payment, that's

1:29:22

basically the $5,000. Like if you went

1:29:24

a year without your car payment, you'd have the $5,000, for sure. Or

1:29:28

you did a side hustle for $1,500 a month. You

1:29:30

could get it, yep. So I kind

1:29:33

of wanna pay some empathy

1:29:35

for the fact that people feel like they're facing against

1:29:37

a wall. That there's no other thing.

1:29:39

But what I want you to see is listen,

1:29:41

start looking around, because there's other options and avenues

1:29:43

for you to get out of this. Well, and

1:29:46

in that case, it's such a, we

1:29:48

do this all the time. If you're in a crisis, or

1:29:51

you feel like you have no options, it feels like this is

1:29:53

the only choice. This is the only money I have. Even if

1:29:55

it's $3,000, $5,000, I'm gonna. do

1:30:00

that and it's such a short-sighted view versus

1:30:03

pausing, letting the chaos

1:30:05

settle, right, and actually formulating a

1:30:07

plan and when you actually

1:30:09

start looking at other options. So it is that

1:30:11

quick kind of grab of like, oh my gosh,

1:30:13

I got to just, yeah, have it. It's tough.

1:30:16

And some people are like, listen, I'm having

1:30:19

a hardship and there are hardship withdrawals. Hardship

1:30:23

means that it allows you to take money

1:30:25

out of your 401K to meet an immediate

1:30:27

and heavy financial need. That's what the IRS

1:30:30

says, immediate and heavy financial. And

1:30:32

so many of us would look, could look at that and

1:30:34

go, listen, I needed those Beyonce tickets. Whereas

1:30:36

others will look at it and go, okay, yeah, I've

1:30:39

been without my, you know, I've been without a job

1:30:41

for X amount of months or, you know,

1:30:43

what we're saying is this could include

1:30:45

something like a natural disaster, right? Repairs

1:30:48

from a natural disaster, covering funeral expenses

1:30:50

for a loved one or paying rent

1:30:53

to avoid being evicted. Like those

1:30:55

are really, really serious situations. You're

1:30:58

only allowed to take out the exact amount that

1:31:00

you need for those expenses. And remember, you'd still

1:31:02

have to pay taxes on it. So there's really

1:31:04

no way around some of

1:31:07

the financial strings that are attached

1:31:09

to this, even if it was a hardship

1:31:11

withdrawal. And again, we're seeing that

1:31:13

these are on the rise. Unfortunately, more

1:31:15

and more people are lying about

1:31:17

their situation, Rachel, to qualify to

1:31:20

get it. Yeah. Which

1:31:23

is for odd. It's fraud. Yeah, yeah, yeah.

1:31:25

That's illegal. Yep, yep. What

1:31:27

we just want you to take away from

1:31:30

this is A, don't lie

1:31:32

about your situation and don't commit fraud,

1:31:34

but B, understand that there's always options.

1:31:37

There's always a way that is

1:31:40

better than probably what you're scared

1:31:42

and anxiety-filled sleepless brain is coming

1:31:44

up within the moment, right? Yep,

1:31:46

that's right. Because when we're panicked, we're like,

1:31:48

okay, what can I do? What can I do? And

1:31:50

your brain just fixates on one thing that usually feels

1:31:53

like the easiest answer, that feels like the answer with

1:31:55

the least amount of friction. But a lot

1:31:57

of times it's not the best answer. It might be what we

1:31:59

talked about. you picking up a

1:32:01

side hustle in the midst of an already

1:32:04

very busy schedule, you selling a car and

1:32:06

having to coordinate with your spouse a one

1:32:08

car situation when you've had two cars your

1:32:10

entire marriage. Like no one is sitting here

1:32:13

and saying that that wouldn't be difficult or

1:32:15

very hard to pull off or require tons

1:32:17

of coordination but it's bigger and better than

1:32:20

borrowing from your future because what happens is

1:32:22

when we pull from our retirement it does

1:32:24

draw a line in the sand of okay

1:32:26

this is something that I have the option to do. And

1:32:29

once you start that it's

1:32:32

kind of like you said this is available

1:32:34

to me and then the next time a

1:32:36

hard situation comes that's an option

1:32:38

that you know you did in the past and

1:32:40

so it really is about building the

1:32:43

right behavior over time Rachel and again for

1:32:45

me totally because it fixes like

1:32:47

you said the issue in the

1:32:49

moment but man it takes

1:32:51

away from so much growth that could be

1:32:53

happening. So do you make the sacrifice on

1:32:55

the short term that's why we tell people

1:32:57

not to take money out of your retirement

1:32:59

401k or Roth or IRAs to

1:33:03

pay off debt because this is something that you

1:33:05

can do on your own without that money because

1:33:07

again you lose so much so much growth. So

1:33:09

if you want to know more about this

1:33:12

we do have a really cool article by

1:33:14

the way we have tons of articles on

1:33:16

ramseysolutions.com but we've got one here that's called

1:33:18

why you shouldn't withdraw from your retirement pay

1:33:20

off debt. There's a nice ring to it

1:33:23

but it's at ramseysolutions.com and the link is there

1:33:25

in the show notes. So take a look at

1:33:27

that it's just listen knowledge is power the more

1:33:29

you know with the little rainbow at the end.

1:33:31

So with that let's go to

1:33:33

the phone lines we've got Caden

1:33:36

in Boise, Idaho. What's going

1:33:38

on Caden? Hey there how's your

1:33:40

guys today going? Great how about you? Terrific

1:33:43

so I got myself into a

1:33:46

little bit of a pickle. I'm

1:33:48

22 years old I

1:33:50

make about 80,000 I made 80,000 last year I'm planning

1:33:54

on making up 100,000 this year and I am roughly $280,000

1:34:00

in debt. That includes a house, a car, a motorcycle, and other

1:34:02

miscellaneous like

1:34:10

credit cards and stuff. How much is the

1:34:12

house of that debt? House

1:34:15

is $225,000. Okay. And

1:34:17

go ahead and just tell me the rest of them

1:34:19

as well, the car. Car

1:34:22

is $4,000. Motorcycle is $12,000. And then, the car is

1:34:24

$4,000. And

1:34:30

credit card is another $4,000. And then, I have

1:34:32

a $4,000 home improvement loan for

1:34:37

any electrical situation that had happened.

1:34:40

And that's $4,000 as well. Listen, I

1:34:42

think you do have some debt here

1:34:44

that I think that you'll be able to clean up relatively quickly.

1:34:47

I think because you're grouping it in

1:34:49

with the house, it feels even

1:34:51

more overwhelming. And that might

1:34:54

be because is your home payment

1:34:56

too high for your income? What's your home payment?

1:34:59

Home payment is I have

1:35:01

a first and a second mortgage. I went

1:35:04

through FHA, so the down payment assistance.

1:35:08

First mortgage payment is $1,750. Second is $100.

1:35:14

Okay. So you're paying $1,850. And what's your

1:35:16

take-home pay? Roughly.

1:35:20

I work

1:35:22

hourly plus commission, so it varies, but

1:35:24

anywhere from four to like seven

1:35:27

each month. Okay.

1:35:30

So I think on most months, you're

1:35:32

fine with this mortgage. If I were you, I

1:35:35

mean the way we

1:35:37

teach is the mortgage is completely separate from the

1:35:40

rest of the debt. And I think if for right

1:35:42

now, while you're in BabySip 2, which is paying

1:35:44

off all of your consumer debt except

1:35:46

your mortgage, I think that'll break

1:35:48

it down into like more manageable bite-sized pieces.

1:35:51

Do you have any money saved, Kaden?

1:35:55

I do not. Okay.

1:35:57

Yeah. So If I were

1:35:59

you. I would probably sell the motorcycle

1:36:01

and I were to look to say

1:36:04

okay than that that takes a that

1:36:06

takes a good chunk off than we

1:36:08

at twelve thousand lasts. Between

1:36:10

the other the four thousand car. Or.

1:36:12

Thousand credit card and Four thousand.

1:36:14

I'm. On the electrical

1:36:16

issue. And. I would just work to

1:36:19

pay that down. Kate and I may I would. I would

1:36:21

work extra. would do it. You can. I mean you're twenty

1:36:23

two as you get all this stuff cleaned up. Ah, it's

1:36:25

amazing what can happen when you don't have all this debt

1:36:27

and are kind of the credit cards. And

1:36:29

I would really start living a life of

1:36:31

say okay I'm Summer doesn't use dead. You.

1:36:34

Paid off you say of numbers and and stayed

1:36:36

at twenty five is gonna be. Pretty

1:36:39

dang in a great situation. They

1:36:44

have. You want to make real

1:36:46

progress with your money and get

1:36:48

that extra push to keep going.

1:36:50

The new need to be at

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Early bird tickets start at just

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1:37:16

solutions.com/weekend. You

1:37:20

are listening to the Ramsey So and thank

1:37:22

you for listening to the Ramsey show. I'm

1:37:24

Seed Warsaw join me so I next to

1:37:27

me is Rachel Cruise and we're taking your

1:37:29

calls for the rest of the our Asa

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eating. Give us a call. The numbers: Triple

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I mentioned it before and I'll mention it

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again. We are doing a really cool live

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days. You come up here on our campus

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and we are going to walk through really

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what it's about as it's based on the

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books, the total money maker or so stats,

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the baby. Steps and so basically everything

1:37:59

you're thinking. On the radio. If you

1:38:01

want that deep size, you want to be

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around like minded people you wanted to get

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into it, Get that deeper level, be motivated.

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This is the event for you on all

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further ado or it. Let's. Go

1:38:29

to Rachel who's in Spokane, Washington, the city

1:38:31

I was born in with going on. Rachel.

1:38:35

It's. A pretty are it city I said I. Say.

1:38:39

Or do we do like how. Am

1:38:41

I would love some unbiased? I am.

1:38:45

Is sort of financial really is not

1:38:47

my sentences but I am thirty two

1:38:49

years old and I'm independent current which

1:38:51

means like I chose to become apparent

1:38:54

from a false after knowledge twenty five

1:38:56

to six and seven company one we

1:38:58

never line with like finances are like

1:39:00

a financial ideology or having children though

1:39:03

three years ago and said have a

1:39:05

child on my own I love my

1:39:07

daughter. She is the best! Oh my

1:39:09

goodness. I

1:39:12

it's still a conspirator. really need some

1:39:14

good decisions and student older now she's

1:39:16

born house and he not a lot

1:39:18

of friends and family. Are

1:39:20

always ask me like. You. Should start eating

1:39:23

sin and like like mine she going on dates

1:39:25

acquired enough doing this and a really big reasons

1:39:27

I'm thirty two animal any that and I wish

1:39:29

I could accept that. A kid up on my

1:39:31

loans, credit card, debt, car. All. That when

1:39:33

I was twenty six, businesses like. I'm

1:39:36

into to be than is an.

1:39:39

Accent was feeling of you know there's.

1:39:41

The obvious. You. Know not

1:39:44

like putting anyone on my daughter, not just

1:39:46

like dinner for sure. You know I don't

1:39:48

have a birds, fishes, batteries and but the

1:39:50

reason I'm calling is that my son set

1:39:52

me up on a date with one of

1:39:54