The Ramsey Show - App - Always Take the Lump Sum From Life Insurance (Hour 1)

Episode Date: December 26, 2018

The show about you

🎵 Live from the headquarters of Ramsey Solutions, it's the Dave Ramsey Show, where debt is dumb, cash is king, and the paid-off home mortgage has taken the place of the BMW as the status symbol of choice. I'm Dave Ramsey, your host. This is your show, America. It's all about you. We're glad you're here. Open phones at 888-825-5225. That's 888-825-5225. Starting off this hour, Susan is with us in Providence, Rhode Island. Hey, Susan, how are you?

Good, thanks. How are you? Better than I deserve. What's up in your world? It's an honor to talk to you today. You too. Okay, so I have a question. My husband passed away a few weeks ago, and I have his estate to deal with. So my question to you is, he left me in good hands. He had three life insurance policies, and the larger one, I'm not sure what to do with it.

They've sent me documentation to put it into an alliance account, or I can get just a lump sum check, and I wondered what your opinion was on that. Oh, my goodness. What happened? He was fighting cancer for the last year, an aggressive one. Oh, I'm sorry. How old was he? Fifty-four.

Wow. How long have you guys been he? Fifty-four. Wow. How long have you guys been married? Twenty-nine years. My goodness. Wow. Well, you always take the lump sum from the life insurance company. They always would like for you to use them to do investing, and that's not the thing we're going to do. Okay. So just take the lump sum. Okay.

And you've got up to $250,000 with a given bank of FDIC insurance. So how much are these different policies? Okay, one is $250,000 and the other one was $490,000. Okay. All right. So we're going to use three banks. Okay. All right. So we're going to use three banks. Okay. And that way you can park it and do as little as possible for a little while, because you guys have been fighting this for a year, so it wasn't a shock. But there's still 29 years and grieving.

And it's just hard to, you know know it's just hard to breathe right now and so we try not to make major financial decisions unless we have to so uh do you have any debt other than your home nope the home's paid off we only have a small kitchen loan um that i was going to pay off um as soon as I get one of these lump sums done. Not this one. I get another $50,000 life insurance from work, so I'm going to put that right into my emergency fund and pay off that. It's only a $25,000 kitchen loan. Good.

And then you're 100% debt-free house and everything. Yes, we are. Wow. Yeah. Thank goodness. Thank goodness. My goodness. He was one of your followers. He really taught your class, and he did a great job taking care of me.

Wow. He was a Financial Peace University coordinator. Yes. Oh, my goodness. Oh, my goodness. Okay. And do you guys have a nest egg, a 401Ks and that kind of thing? Yes, he had, yep, we had that.

He left me a million in that. Oh, my gosh. I know, I know. Wow, you're in such good financial shape. Oh, my goodness. So that puts you at almost $2 million. What's the home worth? Oh, gosh, I'm not sure.

It's probably no more than $300,000 probably. So your net worth's in excess of $2 million when you get these checks then. Wow. Yeah. That's pretty cool. So I shouldn't put one of these into my emergency fund. It should be three separate bank accounts? Well, I don't want more than $250,000 in one bank because of FDIC insurance.

Oh, I see what you're saying. Okay, gotcha. That's just for now. Now, you know, one of them is your emergency fund for sure, and you're 100% debt-free, and you're in really good shape financially. You don't need to touch any of these retirement funds. You can just let them sit there and continue to grow. Are you employed?

Yes, I'm going back to work in December, yep. Okay, and will you make enough to live on? Yeah, I make about $90,000. Oh, my goodness, okay. So more than enough. Yeah, you can live on that and not touch any of this money. And then when you feel like you're up to it, that the fog of grief is clearing off of your brain, I usually tell people a year, but you guys are in such good shape financially.

You've been doing this for a while. You guys were financial peace coordinators. So I think you're going to be making pretty solid decisions fairly quickly but there's no rush there's no pressure okay so sometime after the first of the year let's say that when all these checks are sitting in the bank sit down with your smart investor pro that helps you with your investing, and let's get the bulk of this money invested into something, into some good mutual funds and that kind of thing, so that it's not just sitting there in a bank account.

But the thing about sitting it in the bank account is it just keeps you from, you don't have to make decisions while you've got the fog on your brain of grief. Correct, right. Well, I have a question, actually. He has a Roth IRA, another IRA, and a Vanguard fund. So should I put the money into any of those? You can't add all of that to that. Okay.

You're just going to have to do good mutual fund investing. Okay. And, again, I would sit down with a smart investor pro. Do you have somebody that's been doing your mutual funds? No. Okay. No. My husband, it's through his company.

Okay. He worked for investment firms. Yeah. Okay. All right. Well, jump online at DaveRamsey.com or whoever you're going to deal with, and you can check out a smartVestor Pro if you want to, and sit down with someone and get you some investments going sometime after the first year.

But between now and spring, it's okay if that money doesn't earn anything, the life insurance money, if it just sits there while you, again, let the waves of this uh get past you and if you need anything you guys have been leading the class you call us we'll have one of our coaches sit down with you you know you're not by yourself we're gonna we'll walk with you through this and but you're in great shape financially just a horrible thing to go through but um my goodness gracious how wonderful the financial situation is so susan thanks for the call open phones at 888-825-5225 so six hundred seven hundred thousand dollars worth of life insurance a million dollars, and a 401k at 54 years old, and a paid-for $300,000 house. This is doable for all of you.

This is the way, this is a godly man leaves an inheritance to his children's children. This is how you handle money. You end up with some when you handle it. And your wife that's left behind is worth a couple million dollars. She's in great shape financially. What a great man. What a great job he did. What a great job she's done to get it to this point, working together.

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We're glad you are here. Open phones at 888-825-5225. Alyssa is in St. Louis. Hi, Alyssa. How are you? Hi, Dave. How are you? Better than I deserve.

What's up in your world? Not much. I'm very excited to talk to you. I'm a big fan. I have a question. My husband and I have been going back and forth a little bit, have a little bit of a disagreement. Right now, we owe $10,000, a little over $10,000 on our van, and that's the only debt we have. And then we have our house,

and our mortgage is left with $37,000. That's all we have left on our house. And since our van is interest-free, he prefers to make extra payments towards the house rather than the van because it's 0%. I am very familiar with your teachings, and he is just by me telling him about it, saying that we should pay the van off. But I could see his point with it being 0%, so I just wanted your input on that. Okay. Well, what is your household income? It varies because he's in sales and I am actually a housekeeper. It's anywhere from $90 to $100.

Okay. And so, what, three years from now, both of these are going to be paid off, agreed? Oh, yeah, definitely. Okay. So it doesn't matter. It doesn't matter. It doesn't matter. Okay, because here's the point. Let's add up the interest saved on the $10,000 of your mortgage that would have been the van. And let's apply actual mathematics to his supposedly sophisticated way of looking at things. Right. The interest that we're talking about, I mean, your interest rate is 3%, okay?

It won't buy you a biscuit. Right. All of this gyration where he's trying to be sophisticated and pay off his house before the van. Right. The amount of money that we're talking about different over a three-year period of time, it's biscuit dough. Right.

I mean, go through the drive-thru at Chick-fil-A. It's gone. Okay. It's just not much money we're talking. If you add a zero to both of these things, we'd have something to talk about. Gotcha. $100,000 versus $370,000 or something like that, right? Right.

And $100,000 was interest-free. Then we can make an argument about the interest-free aspect of this. But right now, all it is is academic, academic you know just putting your fingers on your lips and going it's just academic garbage is you know you're arguing about nothing right right and he's wrong and the reason he's wrong is you pay off consumer debt before you pay off your house always regardless of if it's interest-free but the point is it's all going to be gone soon. Right. So fast that none of this math actually applies.

When you actually calculate out the interest on this, there's not enough dollars involved here to even have a discussion about it. So you know what Dave would do. I'd pay off the car first. And the reason is consumer debt. Depreciating assets should always be paid off before appreciating assets. The van's going down in value. The house is going up in value.

But you're going to pay off so fast as long as you're both on the idea that we're going to be done in three years anyway, completely with both of these, it doesn't matter mathematically. But you know what Dave's going to say because as you said, you are a follower and so forth.

But I'm more concerned that the two of you can't seem to get on the same page and he can't respect your vote on this. Instead, he has to try to come over here in the corner and do some math that's kind of humorous. It's so pitiful. Instead of actually listening to his wife. See, that's a bad omen more than the actual argument itself. Hooman is with us in Canada.

Hey, Hooman, what's up? Hey, Dave, how's it going? Better than I deserve. How can I help? Awesome. Okay, I have a quick question for you. So I'm in my early 30s, and my wife's in her late 20s. And we're obviously already thinking about retirement, and we're starting to put money away.

You know, listening to your programs over the years, I mean, I try to implement a lot of the same ideologies. Essentially, what we do is we buy stocks and mutual funds, well, mainly mutual funds, you know, index funds, and we basically buy it on a weekly, bi-weekly basis and so forth. Now, my question is, for someone that's, you know, in their early 30s or late 20s, you know, looking long-term over the next 30 years, what is the best strategy? I mean, I look at whatever I've read online, they always say to invest in growth stocks as opposed to dividend-paying stocks and things like that. In regards to compound returns, what do you think is the best strategy?

Well, the question is what's going to give you the biggest rate of return, risk-adjusted? And a portfolio of growth stock mutual funds will give you the biggest rate of return. Now, the portfolio I personally do and I recommend is four types of mutual funds, growth, growth and income, aggressive growth, and international. Now, growth and income is the big dividend-paying type companies. And most of the time in those funds, of course, it's inside of a retirement account is your first steps. And so, you know, Canada notwithstanding, in the U.S. it would be not taxable if it's in a retirement account.

So whether it's dividend growth or regular growth, it doesn't matter. But the growth in income would be more dividend paying than growing. But the two together, the growth in value and the dividend payout, give you your rate of return and a growth in income in an aggressive growth there's going to be almost no dividends and but a higher but a higher turnover ratio and a higher risk factor and then with a regular growth fund that's kind of in the middle um it's going to have almost no dividends but maybe a few might pay a dividend but most of it's going to come from growth international will be a mixed bag of that and so that's the four that i put money in i put one-fourth of my uh contribution into each of those four with long track records 5 10 20 year track records i never buy a mutual fund in the open market less than a 10-year track record i've never bought what ever less than a 10-year track record. I've never bought one, ever, less than a 10-year track record in the open market.

Now, if you're in a 401k or something like that where you have a limited selection, you may be forced to buy something with a shorter track record. But there's no reason to buy something with a three-year track record when I've got a fund that has the same rates of return over the same periods of time but has a 30-year track record, and actually has a proven track record in knowing what the flip they're doing. So that kind of thing is what we're after there. Rachel's with us. Rachel's in Birmingham.

Hi, Rachel. Welcome to the Dave Ramsey Show. Hi, Dave. Thank you for taking my call. Sure. My question is that I'm in my second marriage, and my husband and I just started taking the Financial Peace University, and we got our budget together, and we're doing

really well, but decided to try to put our checking accounts together. Good. He came in with one. I came in with one, but we can't get on the same page about it. Why? I just wanted your thoughts. I think he wants security in knowing that he has his own account. I like transparency, so I think having a joint account where we have access and can visualize what's coming in and going out is important. It's very important.

Yeah, so I wanted your opinion on it. Well, I feel very, very strongly after 30 years of doing this that combined accounts are the only way to win with money, or the highest probability of winning with money. It's not the only way, but it's the highest probability. And the reason is all the data points tell us that a high-quality marriage is one of the recurring statistical themes in people who build wealth. A high-quality marriage is people who trust each other and people who have high levels of transparency and high levels of communication.

And relationship has grown in that situation. Both of you coming into this from second marriage. No, you said you were. Were both of you from second marriage? Both of us, yes. So you carry baggage in, and it's human nature to take the crap of the ex-wife and paint you with that brush. And it's human nature for you to take the crap of the ex-husband

and paint him with that brush. And it's human nature for you to take the crap of the ex-husband and paint him with that brush. But we cannot look backward and deal from our wounds. We have to look forward and say, what is a proper, healthy process that takes us past our wounds and causes us to never be in the place we were with those other marriages? And so you're on the right track. And if I'm you, I'm going to gently but firmly force that issue. Because independence is something you want if you're not married. But once you get married, the preacher says,

And now you are one unto thee all my worldly goods I pledge, the old marriage vows say. There's nothing smart about smartphones if your wireless plan is blowing your budget each month. Pure Talk USA offers smarter wireless with unlimited plans starting as low as $20 per month. You never pay data overage fees and we never turn off your data. No contracts, no hidden fees. Thank you. carriers. We operate on the largest GSM network in the U.S. to ensure you receive reliable coverage virtually anytime, anywhere. Plus, you can keep your same phone and number and add multiple lines to save more. We're so confident you'll love Pure Talk USA that we invite you to try our service risk-free. Just visit puretalkusa.com, enter promo code SAVEDAVE, no spaces, and receive 50% off your first month. That's puretalkusa.com, Dave and Stacey are with us. Hey, guys.

How are you? Great. Hey, Dave. Great. Welcome, welcome. Where do you all live? Bowling Green, Kentucky. All right.

So about an hour north of here. Yes, sir. Yes, sir. Drove an hour south to come down and do your debt-free scream. Yes, sir. How much have you guys paid off? $246,000. Yay! an hour south to come down and do your debt-free scream. Yes, sir. How much have you guys paid off? $246,000. Yay!

And how long did that take? 61 months. Good for you. And your range of income during that time? Our take-home pay was $71,000 to $84,000. Very cool. What do you all do for a living? I'm a minister at a local church and a track and field coach.

Cool. And I work in the budget office of a public university and i help with the track and field team all right fun good for you guys so uh five years 246 000 i'm guessing you paid off your house yes yes we do i love it congratulations thank you thank you i'm looking at weird people that's right we like you looking at us weird people weird people normal people don't have paid for houses right normal's broke you looking at us. Weird people. Weird people. Normal people don't have paid-for houses. Right. Normal's broke.

You guys are weird. I love it. Congratulations. Thank you. How does it feel to not even have a dadgum house payment, man? Feels good. Feels good. It's good.

It's still sinking in. Yes. I guess. Wow. It's a big win. Big win. We've got other things we want to do, but that allows us to do that later. Absolutely.

You live like no one else later. You can live and give like no one else.'s right so very very cool so tell me the story what happened 61 months ago that made you decide you wanted to be not normal well a minister in my church said hey dave we're going to have financial peace and wanted to see if stacy would lead that he didn't ask me to lead it he knew i was too free spirit spirit. He knew I couldn't do that. So he says, can Stacy lead this? I said, well, let's ask her. Let's see what she says. And I turned him down because I knew enough about Dave Ramsey to think that he was a little bit crazy.

He is a little bit crazy. Only one crazy Dave in her life was enough. There you go. I'm going with that. That's good. So we agreed to take the class. And we said if we could buy into what Dave teaches, then we would think about teaching classes in the future. Okay that's fair. We bought in. That's fair. So you got in there and you went this guy is crazy like a fox. Yes we really didn't think we would get much out of it

to start because we we didn't think we had financial problems. We we thought we did well because we had an annual budget and we paid off our credit cards every month. And we had moved from one town to the other and still owned the house in the old town. And when we went to take a mortgage out on our new property, we kind of said, we want to save this much still. And we want to pay off or we still have to pay off that loan. So you had a plan. We kind of had a plan. Didn't think we were in dire straits. Well, you really weren't in dire straits.

Right. But there was some stuff you could look at different. So what happened when you're going through the class? What switches started to flip? Lesson four, dumping debt. Ah. You just motivated us with all the visual things in that class, with the chain around you and the story about practice the goat

and the gazelle intensity we just we came home and we we did bill pit night that night and i looked at the savings account and i said we have enough money to pay off our two non-mortgage debts this week if we want to we're just keeping that money in savings so it's just really um a god thing that led us to offer that him control of our finances. And we're going to empty out the savings account, pay off those debts, and then trust you to take care of the mortgage on the house where we moved from and the rest of the journey. Wow.

Okay. So you got both properties paid for now? Yes. Yes. Wow. We sold the house in the other town. Oh, you did sell it? Yeah.

It sold during that process. But we didn't make any money. No. It cost us money to sell that house. Okay, all right. So it did not help the journey other than you got rid of the weight. Right, right, right, exactly. So, yeah, the smoke clears on this.

You got rid of your mortgage, the mortgage on the other property, these other two debts. You did have a sense of relief then, didn't you? Yes, very you yes very much very much very cool that's fun interesting so when people ask you what the key to getting out of debt is i mean your house is paid for you're weird i mean what are they what do you tell them the key to getting out of debt is well i think it's different for everybody you know everybody's motivated different ways but for us and for me, it's to have an amazing teammate.

You know, where we're from, they call us Team Garrett. And it's because we work together all the time. And we just got after this with both people and had no. And we just got Team Garrett going. And then we just got after it. And the thing that I've really come down to is that, you know, we all need to be out of debt. We all need some things in our life. But it doesn't change until you want it. And we wanted it more than we needed it.

And so when we started wanting it, that debt was running from us every month. Stacey, get that book out. We'd start going, man. We'd start paying off that debt. It was running from us. So for me, it's be a team, and you've got to want it. That's very cool. Very cool.

Well, the budget director gets a whole new look on things over here. So what is your uh advice to people that want to get out of debt stacy uh definitely just work not just doing the budget but executing the budget i mean you've really got to use that as the roadmap to keep you on course i am the true nerd of the family it gives me great satisfaction when our cash envelopes are getting to zero by the end of the month and our checking account's dwindling down to our buffer amount because it just means it worked again. Yeah.

The plan is on track. Yes. You're making your money behave instead of it making you behave. Yes. Okay, very cool. So mom and dad came with you to do your debt-free scream. They fed us a bunch through this time. They fed you a lot?

They fed us today. You need a good excuse just to get that They fed us a bunch through this time. They fed you a lot? They fed us today. You need a good excuse just to get that money in. I get that any time. Hey, Dave, when I get to eat with them, I get to eat meat. It's awesome. It's amazing. Get some meat. Here comes Betty with some meat.

It's awesome. I love it. That's a good thing. You're a carnivore. I love it. Me too, brother. Oh, that's fun. So did you grow up, Stacy, with with mom and dad were they already

conservative and and smart with money so it was natural to you and this was just a fine tuning of the way you looked at it yes i was on an envelope system as a child oh wow when i got my allowance so i had the five envelopes um so when you're seeing all this stuff you're going ramsey's not crazy he's like my dad. Well, my mom, probably. Okay. All right. Like my mom. All right.

There you go. Okay. Cool. Fun. Fun. Well, congratulations. I know they're very proud of you. How old are you two?

Well, one of us is not quite 40, and the other one's more than 40. Okay. I'm just going to let you guess. Okay. I ain't going there. You ain't going there. I ain't going there. That's right.

Hey, Dave, can I tell you about number four for me? Sure. I work at church, and for a long time I've worked at church. And we've tithed and all that. But your number four, the lesson number four, it really got on me. And as time went on, we've led four sessions since then as coordinators. Oh, wow. And every time we do that, number four, we get emotional and stuff starts stirring around.

I tell you, I'm a minister, and for all these years I've stood in front of crowds of people. And the day we got up and did a commercial, we're on our local churches on local broadcasts on television. We got up and predicted what we were going to do. We put ourselves in it big time. And we said what we were going to do. We put ourselves in it big time. And we said what we were going to do, and then we set out to do it. But what I've realized through that is that so many ministers are not able to get up and be that bold because they're not doing it. And I just want to say, you can do it. Pastor, you can do it.

Minister, you can do it. And when they do it, they'll change, and they can look into the faces of those people and show them, hey, the Word of God says you can do it and when they do it they'll change and they can look into the faces of those people and show them hey the word of god says you can do this and when you do it your parishioners will do it and how quick would the church change if ministers were able to convey that message amen amen and there's just so much shame and so much condemnation for people who are ministers and not ministers on this subject. It's amazing. I mean, even with Sharon and me, when we were going through going broke, we didn't tell anybody.

We were ashamed. Right. And, you know, there's this sense of I'm not doing a good job, so I don't feel qualified to talk about it. Right. Kind of thing. And it sets you free once you say, hey, I'm not doing a good job, but I'm going to fix it. All you got to do is say that out loud, and then it goes from there.

You're right. That's a good word, brother. Good word. Very well said. Very well done. Well, congratulations, you two. I'm proud of you. Thank you.

I know your mom and dad are, and you guys are rocking it, man. Very well done. We've got a copy of Chris Hogan's book for you, Retire Inspired. That's the next chapter in your story to be millionaires and outrageously generous as you go along. Yes, sir. Very, very well done, you two. All right, it's Dave and Stacy from Bowling Green, Kentucky. House and everything, baby!

$246,000 paid off in 61 months, making $71,000 to $84,000. Count it down. Let's hear a debt-free scream! Three, two, one. hear a debt-free scream. Three, two, one. We're debt-free! There you go, man. That's how you do it right there.

Doesn't get any better than that. Well, you're next. What are you waiting on? Yeah, you. This is the Dave Ramsey Show. Thanks for joining us, America. This is your show. We're glad you're here.

Open phones at 888-825-5225. Jamie is with us in Champaign, Illinois. Hi, Jamie. How are you? How's it going, Dave? I'm good. Good. How can I help?

I was wondering if I should use my retirement to pay off my debt or to just roll it into an IRA. How old are you? 30. 30? 30. 30? Okay. If you take your money out of retirement, you will be charged a 10% penalty plus your tax rate. What is your household income? About 65.

Okay. So you'll be charged another 20%. And so it is about a 30% of it will go to the government in taxes and penalties. So it's kind of like saying, Dave, I want to borrow money at 30% interest to pay off my debt. You would never do that, would you? Not at all. No. It would be better to leave it like this is Illinois.

Well, have you left the state in terms of, I mean, you don't work there anymore? No, I'm just switching jobs okay can you roll it i can just into a traditional and i think a 401k yeah well no i would roll it into a traditional ira is what you should do into good growth stock mutual funds and that way there will be no taxes on it and it will grow in the future and if you need some help doing a direct rollover like that with mutual fund purchases for any kind of investing, just click smartvestor at daveramsey.com. Put in your email and stuff.

It'll drop down a list of the SmartVestor pros, the people we recommend in your area, and they will sit down with you and help you do that rollover or any other investing that you need to do, kids' college, that kind of stuff. Amber is with us in Indianapolis. Hi, Amber. Welcome to the Dave Ramsey Show. Hi. Thank you for taking my call.

Sure. What's up? My question is very similar to the one you just had just a minute ago. My husband just changed jobs, and he has a 401k that he had profit sharing going into. We didn't put anything into it. I am in my last year of college, but I have seven months for that seven months without a paycheck and help pay for my student loans. No, because, again, you wouldn't borrow money at 30% or 35% interest to do that. The only time I tell people to cash out a 401k or an IRA early is to avoid a bankruptcy or a foreclosure or a foreclosure and you're not neither one of

those situations you just got to you just have a tight budget because you're jumping through the student teaching uh hoops that you've got to go through and you guys may have to pick up some extra jobs or you may have to cut some other things back you may have to sell some stuff to get through this time to get you into your until you get in your teaching seat and start making money and um you know that's the um that's the route I would, you know, look at this. But, no, I don't want to cash out retirement because it's just such a hit on it. I mean, you're going to give the government a third of it, and you never borrow money at 30% interest to do this stuff.

It's like saying, Dave, I'm going to cover my – I've got a really bad credit card. Like, all of them aren't bad, but I mean a really bad one that's 35% interest. And I'm going to borrow money on a 35% interest credit card to cover my seven months of student teaching while I don't have a paycheck. No, you wouldn't do that. And that's the same thing mathematically, the exact same thing you're doing here. So, no, no, wouldn't do that. Thanks for calling in. Open phones at 888-825-5225.

Eduardo is on Facebook. Dave, is there a Spanish version of Financial Peace University? Yes. It is taped by a guy who used to be on our team here. He was our Spanish personality, and he has his own company now with our blessing and we love him his name is andreas gutierrez and you can just look him up online it's very easy to find he has a spanish radio show uh answering questions like i answer them only in spanish instead of hillbilly and um he's on about 33 radio stations out of san antonio texas

and he's a great guy. He's a good friend. As a matter of fact, he just had a new book come out, and I had him here on the air with me the other day. We've been friends a long, long time. He was part of this team for a while, and during that time, six of the lessons from Financial Peace University, we taped them, put them on video with him teaching them in Spanish, and they're still available.

We sell them here, or he sells them, either one. You can get them either place, and we'll help you out. We've actually got Spanish-speaking team members who can help you with that. All of my books are in Spanish, and Andres' new book, of course, is in Spanish. It may only be in Spanish, come to think of it. And I would tell you the name of it in Spanish, but I can't say it, so I'm not going to try to butcher it. I mean, I just do good to order tacos. So, I mean, I'm just horrible at it.

So, anyway, that's why. But Andres Gutierrez, he is an incredible guy. Check him out. Any of you that have a Spanish-speaking ministry or you've got a Spanish-speaking church or anything like that or anywhere where you'd want to teach the class, it is available. You can buy it here from us. We've got folks on our team that will help you do that or any of our books. I think every one of our books are in Spanish if I remember, but I know all mine are. I'm not sure if all the personalities

ones we did are in Spanish or not. But anyway, we're big in that community and I love helping that community any way we can. And I appreciate you reaching out and your question. Jennifer is in Pittsburgh. Hi, Jennifer. Welcome to the Dave Ramsey Show. Jennifer is apparently gone. I'm hearing static.

Sonia is with me in Minneapolis. Hi, Sonia. How are you? I'm doing good. How are you doing? Better than I deserve. What's up in your world? Well, I had a quick question for you maybe it's not super quick but um in essence should i lend my fiancee a huge chunk of money no you pay off okay no absolutely not no. The borrower is slave to the lender.

If you want to turn your fiancé into your slave, loan him money. You will change the quality and the tone and the tenor of your relationship. Yeah. The old joke is if you loan your brother-in-law $100 and he never speaks to you again, was it worth it? That's the old joke. I mean, you change the way people treat each other. When are you getting married? We don't know that yet because of money because of money well no no not necessarily just because of that but it's just we're trying to get him to a place first where

we can kind of both be comfortable with it all and yeah so how much money are you do you have? How much money do you have? I have over $38,000. And how much were you going to loan him? $21,000. Okay. To do what? Pay off credit cards and stuff instead of filing bankruptcy. That's kind of what the last part of that question was going to be. Why would you file bankruptcy on $21,000?

Oh, I don't know i've never done it myself i'm pretty much debt free and i always have been very good with my money my point is does he have an income oh he does he is our actual bread maker of the home what what is his income we own a home um i want to say 57 a. Well, you're not bankrupt if you only owe $21,000 and you make $57,000 a year. Well, okay. Actually, let me go back. That's just the credit cards. There's student loans that aren't involved.

Okay, let's say, in essence, $51,000. Okay, student loans aren't bankruptable. Right, and I know that, and that's why I was just going to ask. So you would file bankruptcy on 21 000 making 57 that's just absurd well i i kind of i yeah i didn't know what route to take because he's actually drowning right now he is um he's not making enough to cover all his bills yes he is and i help yes he is oh the bills you me, how much does he owe on his car? He has a truck that is at $11,000, is the balance a little over $11,000.

Okay, and how much does he owe on his credit cards? The credit cards alone is the $21,000. Yeah. A little over. And how much on the student loans? About $9,000. Okay. Well, people call in here every day making sixty thousand that pay

off fifty thousand dollars in debt takes them a couple couple years they have to get organized they have to get on a budget and uh and our uh it sounds like y'all are living together yeah we own a home we own a home we bought a house you're both on the mortgage making a payment you're both on the mortgage yes but what do you make a. You're both on the mortgage? We are, but yes. What do you make a year? He pays me a part. I don't. I'm a stay-at-home mom.

I don't work. All right. It's time for you all to get married and quit playing around with this and get on the same page and start running a budget. And let's crank this down. And then you put your money in the pot and you clean this mess up together. But that has to be with him getting organized and the two of you being on a budget. You can't act like you're roommates and then be having kids

and owning houses together. You're not freaking roommates. This is the Dave Ramsey Show. Hey guys, it's Blake Thompson, Chief Production Officer for the Dave Ramsey Show. This hour's up, but you'll find more on our YouTube channel, where we have over 6 million YouTube views each month. You can find debt-free screens, millionaire hour clips, Dave rants, and so much more.

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