The Ramsey Show - App - At What Point Can We Be Self-Insured? (Hour 2)

Episode Date: January 26, 2021

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Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studios, 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 am Dave Ramsey, your host. Chris Hogan, Ramsey personality, is my co-host today. Number one best-selling author as we take your calls about life and about money. Open phones at 888-825-5225. That's 888-825-5225.

All right, let's go to California and talk to Vanessa to kick off this hour. Hi, Vanessa. How are you? Hi, Dave, Chris. I'm well. How are you? Hi, Dave, Chris. I'm well. How are you guys? Great. How can we help?

So I'm 21. I'm a community college pre-nursing student, and I have no debt right now. I am currently working towards baby step number four. And my question was how I can be intentional with saving for a home with no credit card. I did have a credit card since I started working about four years ago, but I have decided to cancel that. But I am the first in my family to have that approach with getting a house with no credit card. So I'm kind of like learning as I listen to you guys.

And I do have a 401 where I'm investing 10% right now. But I also want to learn more about investing. My job is to give us beanstalks every year where I feel like I could be doing more with it. So what are you making now? I think right now I make about $25,000. And you're studying to do what? Nursing. When will you graduate?

About two years. I am in the process of waiting for a response from a nursing school right now. Okay. So have you got the money saved for nursing school? Yes. I have been working on saving for that prior to starting to save for a home because I know I would have to pay for a nursing school. Phenomenal.

Yes. I don't want you to buy a house until you get out of nursing school, pass your boards, and become a nurse and pay cash for all of that. You've got plenty of time. You're 21. Okay? You're doing really good. You're amazing.

Because your income is going to double or even triple depending on what type of nursing you go in and how much you work. And so, you know, when you come out of that, you're going to be in a completely different place. Let's set a goal of buying a home at 25 years old. Okay. Between now and then, if you use no credit and have no credit accounts open of any kind, your credit score should completely disappear.

Okay. And if it completely disappears, then you will qualify for manual underwriting with a mortgage company that knows how to do that, like Churchill Mortgage. And they can sit down and say, oh, we have a nurse here that makes $75,000 a year, and she has $80,000 down payment, and she's paid her landlord early or on time for the last six years. And she has no debt of any kind, and this is a loan that can be made. Okay. Vanessa, listen to me. You have done a fantastic job.

Okay? Thank you, Chris. No, I'm serious. You really have, because at 21 years old, young lady, I wasn't thinking like you at 21. You weren't even thinking okay first of all dave you just settled down that's true you are telling the truth that's true so i vanessa dave just made sidetrack me i'm very proud of you because you can tell you are a gold driven young lady yeah you said you're the first one in your family to go to college i got a feeling

the rest of your life you're going to be the first in your family to do a whole lot of things because you're goal oriented. Might be the first everyday millionaire. She really could be, Dave, without a doubt. So, so proud of you. Stay focused, young lady. Keep listening to the show. Keep applying this stuff in your life. You're going places.

Vancouver's on the line. Pam's calling. Hi, Pam. Welcome to the Dave Ramsey Show. Hi, Dave. Nice to talk to you. You too. And Hi, Pam. Welcome to the Dave Ramsey Show. Hi, Dave. Nice to talk to you. You too. And Chris, nice to talk to you as well. I'm going to be 65 at the end of the year, looking to retire. And I do have a pension of approximately $250,000, 401K approximately $150,000,

mortgage approximately $300,000. The house is valued at $540,000. So I'm wondering, do I pay off my mortgage? Do I pull Social Security, which will be about $2,200 per month? Not sure what order to do things in. The balance on the mortgage is what? $300K.

That's half of your money. Yes. Ouch. No, my payments are approximately $1,700. Well, I think it's vital that we go into our later years with a paid-for mortgage.

Using this much of your nest egg really makes me nervous. Mm-hmm. Okay. Me too. To pay off that mortgage. What's the home worth? $540.

Okay. All right. Well, here's what I would do. I would sit down with a SmartVestor Pro to help you place the 401K money and the remaining pension money into some good mutual funds as an investment. Most of those will be rollovers into IRAs so that you don't pay taxes on them, and that will allow that money to grow. And you can probably pull $20,000 a year, maybe a couple thousand dollars a month, $1,500 to $2,000 a month off of that account in addition to your Social Security. And with a paid-for house, you probably can make that. But I want you to have a plan that you understand and are comfortable with for investing the remaining $300 well because you've got – that has to do well for this idea to work. Because it just leaves me a little squeamish that you're not going to have but half your money left,

and it's only 300K, and you pay for a house. I'm tempted to move you down a house. Vancouver is a very expensive market, though. I was sitting here thinking, you know, at 550, 540, you sell. You go buy a townhouse. townhouse, do you go down? What I would do is I'd try it. I'd pay it off, put the $300 invested well, and see if I can get the rhythm of my life to work off of what that investment creates plus Social Security. Gotcha.

Without touching that nest egg. Right. And if we can keep the property taxes paid, keep the maintenance up, utilities, and we can have a good life and stay in that house and it works out, fine. The worst case scenario is it doesn't work. It's too tight. Right. Because investments aren't big enough. And you move down and you put more in investments.

Yeah. You could do it as a two-step thing. Yeah, you really could. A second step later. And, Pam, just remember those. You have those options. And I appreciate you reaching out to really lay that out because I'm sure that's been weighing heavy on your head and heart and trying to figure it out.

But don't go it alone. Yeah. Get with the SmartVestor Pro. Click SmartVestor at DaveRamsey.com. These guys don't work for us, but they do investing analysis and teach you what to do. They're advisors the way we teach you what to do. They're advisors the way we teach you here on the air. And so you're going to be sitting with someone with the heart of a teacher.

Click SmartVestor Pro. You put in your name and stuff, and it'll drop down a list of the SmartVestor Pros in your area. You will select which one you want to use, and it'll work perfectly for you. And the guys and gals that do that are just incredible. You'll gain a lot of confidence in your plan as you understand what the investments are doing. This is the Dave Ramsey Show. Over the years, I've heard countless horror stories from listeners about being harassed by debt collectors, receiving calls at work on their cell phones, and some even getting yelled at and threatened.

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Chris Hogan, Ramsey Personality, number one bestselling author, is my co-host today. Open phones at 888-825-5225. Our question of the day comes from Blinds.com. They have a 100% satisfaction guarantee, which means even if you screw up, if you mismeasure, you pick the wrong color, they'll remake your window blinds for free. That's kind of comforting. You get free samples, free shipping, and with the new promos they run every month, you save even more. Always use the promo code, the magic word, Ramsey.

All right, today's question comes from Stephanie in Massachusetts. She asks, my husband currently carries a $1 million policy on himself. It has 15 years remaining. Our children are 7, 6, and 4 1⁄2. We would like to extend the policy by another five years. We priced out a 20-year policy with Zander, and it's $200 a year more expensive than our current policy. My husband is 36 and in good health. Would you recommend switching now to gain the extra years, or should we wait another few years?

Well, I mean, I wouldn't switch. And I wouldn't wait. I mean, as you look at this, your seven year old in 15 years will be 22. Your six year old, 21, your five year old, essentially 20. Your kids are grown adults right now to the home. If you're walking through the baby steps, you can be building wealth. So I, Dave, would be tempted to tell them to stay put. Yeah, at least stay put with that policy. If you want to buy an extra one a little later on and buy you a 10-year and supplement on top of that, you could do that.

You're probably not going to want to because what's going to happen is during this 15 years that's in question that are remaining, you're not only going to become debt-free, house and everything, because you're going to pay off your home inside of 15 years and on top of that you will have been building wealth in your 401k and your roth iras if you're following us and so let's pretend that your youngest is 20 and at the exact moment that the policy expires so does your husband which is your worst possible scenario mathematically right Right. Okay. Every year he lives past that. The kid is older and there's more money. But how much would be in your 401k 15 years from now?

Yeah. Five, six, 700,000? Yeah. And a paid four house? Yeah, great position. And, you know, you will have had other wealth building opportunities during that time as well to get the kids' college funds funded. That's right. So I wouldn't buy anything right now.

I'm with you. I wouldn't spend any more on insurance. You're insured. You know, I agree with you that you're kind of on the bubble. I'd like for that policy to have five more years. I don't disagree with you to give you the ultimate comfort you could do that. I would not buy an entirely new policy to do that though i just buy a small extra policy uh in five or six years that is uh 10 years long yeah or something like that well and stephanie if the things i have said that haven't come true

right well and the thing that stephanie you don't point out in here you don't mention that you have a policy on you uh so i again in looking at this to make sure that you have something on you because if something happens to you your husband has got to hire or find somebody to help with these kids yeah yeah we got to cover you and if you're if you don't have a policy on you and you're going to go get one you might get a spousal rider with him might get a dual policy like that that uh is cheaper than what you're looking at. So the idea is, in general with life insurance, is as your debts go away, your kids grow up, and your wealth increases in your 401k, every year that those things happen, you have less of a need for insurance.

And so it decreases incrementally. Right. It's not decreases incrementally. Right. It's not all at once. But every year the kids are a year older, there's more money in your 401K, and there's less debt. That's true. And so you're closer to being self-insured. You would need less money.

Right. And so you won't need a million dollars if he passed away in the last year of this policy. You'll be flush. Mm-hmm. if he passed away in the last year of this policy. You'll be flush. And so the point being you're overinsured if you've worked this. But that's a fine way to do it. There's nothing wrong with that because it's not that expensive. If the $200 a year gives you great peace of mind and you want to go ahead and do it,

go ahead and do it. It's okay. But the way we're teaching you to do this is to become self-insured because if you've got a million dollars in your 401K, you've got no debt, and the kids are grown and gone, your need for life insurance just went away. She's going to make it. She's going to be all right. You know, he's going to make it. They're going to be all right.

Nathan is with us in Utah. Hi, Nathan. Welcome to the Dave Ramsey Show. Hey, thanks, Dave. Thanks for taking my call. Sure. What's up? I'm not going to lie.

I'm a little excited and nervous. I'm not sure if you're going to love me or hate me. We don't hate you. It's okay. So, but first off, I have to say thank you because of your program and your book. I started listening a couple of years ago and slowly started implementing things. But about a year ago, my wife and I started to take things seriously. And now, last year, we were able to pay off all of our consumer debt.

We've saved up six months of emergency fund, and we were able to put 20% down towards our house. Great. So, we really felt good. We're really excited. I feel like we can't fight about money when we have great direction and we're both on the same page about finances, and I've got a lot to thank to you for that.

Well, thank you. My question is mostly revolved around business debt, and so my job and my wife's job are separate. But my job is full-time working for the business that we own. Now, it's a little complicated because my wife and I business from my parents, and I also have a business partner, and my parents did seller financing. Now, I'm sure you're probably already making weird faces at me, but it's very confessional.

It's very legal. We made sure to make sure that any questions or concerns people had, we have it in an operations agreement, in a buy-sell agreement, so that way there's no concern about anybody getting cheated like that. And it's going pretty well. But the one concern that I have is I'm just not sure quite how to treat the business debt, and if I should be attacking that, like I'm actually on step two rather than full-time. How much do you owe your parents? So we owe $350,000.

And what do you make? Between my wife and I, like I said, she has a separate job, but we have a base salary of $105,000 a year. The business profits between $20,000 and $50,000 a year right now. It will profit more as we have to invest less to make improvements right now. So you make $150,000 and your wife makes what? Sorry, together we make $105,000 a year. Oh, okay.

So together you're going to make about $150,000 then, okay, with the actual profits from the business and everything, right? Right? I think that phone that was struggling finally went out here's the thing i wonder is that 20 to 50 profit in the business is that what he has to split amongst his business partner i think that was his part yeah okay so i think you got 150 000 income you got 350 000 business debt um it yeah it is squirrely that it's to your parents, and yeah, it is squirrely that you have a partner. These are two things that are going to trip you up if you don't get them straightened

out. We don't see a very high success level with either one of those things as we work with tens of thousands of companies in Entrez leadership. Lots of people try this crap, but it very seldom turns out well. So the fastest you can so the the fastest you can do the fastest you can get rid of it the better uh no you need an emergency fund of three to six months of expenses yes your business needs to operate with retained earnings and i would take everything you can squeeze out above that and instead of paying off your home early i would

pay this business debt off early but i mean if you do it at 50 000 a year it's seven years yeah if you do it at 70 000 a year that's half of your income you still got five years and so um you paid an awful lot for this portion of this business based on the profits it generates like overpaid uh your parents it wasn't worth what you paid them, is what you're telling me, based on the profits it's generating. So, you know, because your salary, if that's what it takes to hire a manager to do what you do, does not come out, does not calculate in the valuation of the business. And so what you're describing is a business that your portion of the business

makes about $40,000 a year, and so that was're describing is a business that your portion of the business makes about forty thousand dollars a year and so that was worth 200 max there's the problem there's the rub this is the dave ramsey show do you feel like you'll never save enough money or pay off all your debt after a year like 2020 most of america feels that way but money shouldn't be one more thing that you have to worry about that's why in 2021 we're hitting reset because no matter what's happening in the world you can take control of your money you just need the right plan ramsey plus is our step-by-step plan that gets you quick wins so you can make faster progress on your debt. And once that debt is gone for good, you get more money back in your bank account.

So you can spend and you can save how you want and worry less about the future. So here's our challenge to you. First, decide on a total money reset this year. Then start Ramsey Plus. Commit to working hard for 90 days and watch as your daily wins turn into lifelong habits. Make today day one. Try Ramsey Plus for free. Go to DaveRamsey.com slash reset. Chris Hogan, Ramsey Personality, is my co-host today.

Open phones at 888-825-5225. Valerie is with us in Los Angeles. Hi, Valerie. Welcome to The Dave Ramsey Show. Hi. Thank you for Ramsey Show. Hi. Thank you for taking my call. Sure. What's up?

I have a question about whether my husband and I would be able to be self-insured. We kind of had a crazy year. I started following you about a couple years ago, and I have whole life policies. We've had them for a while. So I did check with Xander on a few quotes, but I do have $147,000 that I can cash out, which I know that's what you'll advise me to do. But I'm just trying to figure out if we're able to be self-insured or if we need insurance.

My husband has been off of work, so he's not getting an income now. So right now we are surviving without his income. So I don't know if – I guess I just need some advice. How old are you guys? We're both 55. You have kids at home? No kids. Okay.

And is your home paid for? My house is paid for, and the building that my business is in is paid for. We do have two properties that I'm trying to get paid. That's kind of what my advice is, too, on if I could use that money to pay down one of the properties. Okay. And the commercial building is worth what? About a million. Okay. And how much is in your savings and in your nest egg, your 401Ks and investments?

So I calculated. It looks like we're just under $3 million. $3 million. Okay. So the answer to the question is, the way you ask the question is this. If he died tomorrow and you got no life insurance with $3 million, a million-dollar building, and your business, would you be okay? Answer, yes. Yes. Okay. I guess my concern would be for him right now because he's not working right now. Okay, so then let's reverse it.

If you died tomorrow and he has a million-dollar commercial building on a business, what would happen to your business? Would it close? Well, see, that's the thing, too. I guess my concern is it would be nice probably for him to have just a little money for him to feel better. He could run. Wait a minute.

He's got a million dollar commercial building. He has a business that he can sell or operate, his choice. And he has three million dollars in investments. I miss how he's not going to be okay. No, I guess I know he'll be okay, but as far as our personalities,

I'm probably more of the property person. That's my passion. I love it. So I guess for him to be okay until he gets those sold, I guess I'm on the fence whether I feel like we'll be okay. I know he can have to sell some property. Well, Valerie, Valerie, let me help you, honey. Your feelings right now are all up in a knot.

Hear my voice. I know it's soft and cuddly, but hear it. You're fine. You guys are going to be just fine. Yeah, $3 million. You're self-insured. And so if you look at this and with the whole life, you want to take that and pay down on the property,

absolutely do that. Yeah, I would not buy life insurance if I were in your shoes. You're good. I think he can struggle through on $3 million if you die. Well, and that's kind of what I feel, but just with the year with COVID, with him being out of work. Well, is he going to make, let's pretend just for a second he made 10% on that money. He can't make it on $300,000 a year with COVID?

No, totally. Yeah. Well, I mean, let's pretend it makes 6%, okay? I hope it's invested better than that. I hope you guys got it invested in good mutual funds. So if it makes 5%, he has to live on $150,000. With no debt. Oh, and there's the rent coming off the million-dollar building and the rent coming off the rental houses.

Yeah. And he doesn't have a house payment. He's the third pig, Valerie. I think he's okay. He's good. He's the third pig in the brick house. You're going to be all right. I mean, just run some math on the numbers that you have, and that answers the question,

are you going to be okay if he dies? And then, on top of that, you say, you know, that's just the way you answer the question. And it's not okay emotionally. Right. Of course, if you die, he's going to be a basket case. That's right. And, you know, poor Sharon. I mean, she would just grieve for 20 minutes.

No, Dave, you know better than that. You know better than that. But Valerie brings up a good point. When you get that emotional with it and you get that wrapped up, you do need to go sit down with your investment professional. You do need to get printouts of the numbers and do the zero when you write out three million don't put 3m i want you to put three and then comma zero zero zero comma zero zero zero dot zero zero i want you to see this and then let the numbers go oh push or sit down with your investment advisor or your smart investor pro if you don't have one get one and say let say, let's invest this $3 million properly.

What is it going to create? An income. Right. And then you go, oh, well, I think either one of us can live on that. We're good. If either one of us aren't here. That's right. And that's how you answer the question, are you self-insured from a life insurance perspective?

Yes. And that's what we're looking at here. So very, very good question. life insurance perspective yes you know and that that's what we're looking at here so very very good question open phones at 888-825-5225 uh kim is with us kim is in philadelphia hi kim how are you hi dave thank you so much for taking my call sure what's up um yeah so my question is around baby step four i just completed baby step three, where I have $10,000 saved, and Baby Step 3B, where I have about $50,000 saved for a down payment on a home. So I feel like I'm ready to embark, thank you, on Baby Step 4.

So my company currently offers, through Fidelity, a regular 401K, a regular Roth 401K, and an after-tax Roth 401K. The match is 3.5% of the first 7%, and then we have profit-sharing bonuses throughout the year. And my current income is about $175 a year. You're rocking, girl. Mm-hmm. Well done.

Well done. It feels good, doesn't it? It does. It feels great to be in this position. Yeah. So you want to do the match first, the Roth second. So I'm going to do a Roth 401k, take the match. Does your 401k have good options with Fidelity?

I assume it does. Fidelity's got some good funds. It does. Okay. So you can pick out the four types of funds we talk about, and you should be able to get 10% to 12% average over the last 20 years with some good F fidelity funds there. And, you know, pick those out.

And that's your projection going forward. If they do that, you can just do the 401K. You can do side Roth IRAs if you want to. But with your income, you can max out that 401K. And you don't even need to max it out to get to 15%. Well, you will. You'll have to max it out to get to 15%. And you may have to do a side Roth as well.

Yep. Yeah, so that's what we're going to do. But to go ahead and do that 401k maxed out to the Roth and to get all the match you can, the profit sharing comes. It doesn't go into the 401k, does it? Yes, it does. Oh, okay. But it goes in whether you put money in there or not.

Correct. Yeah. Okay. Okay. But the match you get you put money in there or not. Correct. Yeah. Okay. Okay. But the match you get. So we're going to get the match, we're going to do the Roth, and then you're probably going to do a side Roth with a SmartVestor Pro in order to get to all the way up to your proper 15%.

You said $170,000 income, right? $175,000, yeah. I mean, again, we keep hearing these younger people that have plugged in early and are doing this stuff. Great incomes, but no debt. And so you see this and you realize, boy, oh, boy, if you start off on the right track, if you start off getting our foundations curriculum into high schools and helping young people start to understand how this money stuff works, they can avoid some of the pitfalls. And it's really important to have that mindset.

But also, regardless, if you're out there, regardless of where you are, you can do this as well. We all have different start points, but we're all running the same race. And so it's really a matter of getting more focused, more intentional about your game plan for yourself. You can do this. And we here at Ramsey Solutions, well, we're here to help. All right.

So 170, 15% would be 25.5. I cheated and got the calculator out while you were yakking. All right. And the limit for the 2021 401k is 19.5. 19.5, yep. And so she's got to put six more thousand in the traditional Roth to get to 15%. Yep. So 401k maxed out, 19.5, plus 6,000 into a Roth IRA with a Smart Investor Pro.

15%. All in good growth stock mutual funds. You're going to be so rich, you're not going to know what to do. What? Richie Rich. What was that? That was my karate move, Dave. That's jujitsu, right?

Yeah, there you go. You and Craig Rochelle going again. This is the Dave Ramsey Personality, is my co-host today. Open phones at 888-825-5225. Time to put 2020, that freaking dumpster fire of a year, in our rearview mirror. If you are ready to own 2021, this year coming up, and actually accomplish your goals with your money, your career, your life, we got a plan.

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Know Yourself, Know Your Money. This book will help you tackle your money mindset faster. It just came out on the bestseller list the last couple of weeks as a brand new book has come out. Be sure and check out Know Yourself, Know Your Money. And if you want to learn how to be an everyday millionaire, the guy sitting beside me wrote the number one bestselling book, Everyday Millionaires, How Ordinary People Built Extraordinary Wealth and How You Can Too. Lots of good reading to do. Yeah, you really do.

And, Dave, don't forget about the original, the OG out there, the Total Money Makeover. This book was the game changer for me. It's the one that helped me get out of my head and get a plan on paper. And it'll help you, too. DaveRamsey.com, backslash store. Just hit the store at our website, DaveRamsey.com, and you can get serious. You can make some real progress. You got to feed your brain this year, people.

Yeah, you do. You got to offset some of that garbage that went in there last year. That pandemic infected your brain, and it wasn't with COVID. So you got to get it cleaned out. It's the way it is out there, man. There's so much crap out there, so much meanness, hateful, nasty, trolling morons. They're everywhere. They really are. And I'm going to tell you something. There's a drink for haters. hateful, nasty, trolling morons. They're everywhere. They really are.

And I'm going to tell you something. There's a drink for haters. It's called Haterade. And you got to be careful. You need to be aware of the stuff you're putting in, the stuff you're consuming for you and your future. As former pastor, God rest his soul, David Foster said, if it's not helpful, hopeful, or doesn't promote healing, it doesn't need to be talked about. I love that. Wrote that phrase down.

So get some positive in your life. Get some positive people in your life and put some boundaries in place for them crazy folks. New stuff in your brain so you get a new result in your life. Joanne is with us. Joanne's in Raleigh, North Carolina. Hi, Joanne. How are you?

Hi, Dave. Thanks so much for taking my call. I'm really honored to speak to you today. Honored to speak with you. How can we help? Thanks. I've read the book, been doing things kind of Dave-ish, started binge listening recently, watched the reset last night, and just really want to get our situation under control and

looking for some help and advice. Cool. My husband's been unemployed for 13 months. He does have a side hustle right now. I'm working full time. We do have $38,000 in savings, a couple of little pieces of debt. I'm just wondering what you would suggest for us to do right now. I think you're doing the right thing.

Just hold on to the money until we get him reemployed. What do you make? $82,500. And what did he do you make? $82,500. And what did he used to make? $110,000 to $130,000. Doing what? Sales management. Okay.

So why has he been unemployed for 13 months? Because he's not able to find another job. In sales management, and he used to make over $100,000 doing it. Yes. How old is he? 49. Okay. Because an interview, has he actually had a physical interview?

He's had a few of them, yeah. Okay, because an interview is a sales meeting. Mm-hmm. It's a sales call. And if he knows how to sell and knows how to train people and run people doing sales, he ought to own an interview. Joanne, what's the problem? Yeah, is he depressed?

Probably. I'm sure. I think anybody would be. How are you feeling with this? Completely stressed, overwhelmed. Yeah. You have to be. Trying to just keep it together. but he would be yeah how are you feeling with this um completely stressed over a while yeah trying to just keep it together no you have to be well have you told him about how you're feeling yes okay so let me let's back up a second okay what we what i would say is i'm going to spend about 90 of the energy of our suggestion on him getting employed.

So let's first go to KenColeman.com, and I'm going to send you a copy of The Proximity Principle, the book I want him to read from Ken, but I want him to download things that he already knows about how to prepare a resume properly, but Ken's going to help him do that even better. And it's a free download. I want you to download at KenColeman.com how to do the interview.

He already knows how to do this. Now, here's what I want you to, I want him to hear, and you play this back when it's on the podcast for him. Okay, what's his name? Okay. Roy. What? Roy.

Roy. Okay, Roy, here's the deal. 49 years old, made $100,000 a year plus in sales and sales management. That is not an easy bicycle to ride. Nope. Not everybody can ride that bike. And you have mastered riding that bike. You got your teeth kicked in, and you got knocked off the bike.

Mm-hmm. It hurts like crud. And so you are not doing what you and I know you know how to do. Sales is the law of large numbers, and it's the law of relationships and connections. And you're going to have to start getting your foot in the door, and you're going to have to start wearing out some shoe leather and dialing for dollars and doing what you know how to do, and that is creating tons of activity around moving a product.

The product is a wonderful product. His name is Roy, and he knows how to sell. And three interviews in 13 months sucks. If you worked for you in the sales, and the guy only made three sales calls in 13 months, you'd have fired him. So I'm jacking you up here, coach. Time to get out there at half to halftime. The team is behind, and you are better than you feel like you are. You are a guy who has made six figures in sales.

A guy who can make six figures in sales can always find a job selling i can promise you if you walk in here and in our organization we love sales people and i promise you you walk in here you'd get an interview and you might even get a hire if you've got good character and you're a good man and you bother to take a bath before you came to the interview so do the stuff you know how to do jack it up get the law of large numbers working for you let's smile and let's talk to a whole bunch of people with that beautiful smile and you know how to sell and you just got to get you got to get a belief in the product again and when you get knocked in

the teeth that hard it's hard to believe it hurts really is. It doesn't mean you don't get back up and go in the second half just because you got creamed in the first half. And, Joanne, you've got a great opportunity to be able to support him and encourage him. Be real about what you're feeling. But his ego is low right now. His belief in himself is low right now. And so you can help him. And in turn, that's going to help you all together with this situation so chris there's a thing about momentum yeah when you have momentum when you're you know

that that you just interviewed matthew mcconaughey on his new book green lights he talked he calls it green lights when you're in a flow and you're catching all the light screen yep that's positive momentum you are not as good as you look that's right you look better than you are because everything's going right yeah no everything you touch turns to gold and when you get kicked in the teeth like roy did and you get knocked off your bicycle you know you you know you you got no momentum you got negative momentum that's right you are better than you look right in those situations you are better than you feel in those situations now if you told me that he wanted to get a job making 110 000 in sales and he had never made over 40 in sales i'd

say you know he's probably doesn't need to be in sales that's exactly right this is a guy who's a proven track record this is a coach who's had winning season after winning season and got fired and he needs another coaching job because he's a winner. That's right. That's exactly right, Dave. And it's out there. And he can do it again, getting the mojo back. But I like what you're saying. Get out there. Get some activity happening now, ASAP.

And Ken Coleman's information will help you. You get over there on Ken's website. He did a Get Hired event. He's got resources about your resume. He's got all kinds of things that will help you, Roy. And again, it's going to be stuff you know, but guess what? Let's do it. And do it a lot and do it often and do it and do it and do it and do it, as my friend Art Williams says.

Just don't stop doing it. I remember hearing him. Just kick it and kick it and kick it and do it and do it and do it. And that's what you've got to do here, man. That's right. There's no substitute for it. There's no digital strategy that's going to fix this crap. You're going to have to get out there and kick some butt and take some names.

Yep. This is the Dave Ramsey Show. This is James Childs, producer of The Dave Ramsey Show. Once again, you made The Dave Ramsey Show one of the top four most popular podcasts last year. To get your daily dose of motivation and inspiration from the Ramsey Network, subscribe or follow today wherever you listen to podcasts.