The Ramsey Show - App - Budgeting Takes Time And Never Works Instantly (Hour 1)

Episode Date: March 14, 2024

МУЗЫКАЛЬНАЯ ЗАСТАВКА Live from the headquarters of Ramsey Solutions, it's the Ramsey Show, where we help people build wealth, do work that they love, and create actual amazing relationships. Dr. John Deloney, Ramsey Personality, is my co-host today. Thank you for joining us, America. We're so glad you are here. Open phones at 888-825-5225. Brennan is with us in Tampa.

Hi, Brennan. How are you? Good, Dave. How are you doing? Better than I deserve. What's up? Hey, long-time listener, and and appreciate you taking my phone call. I did not expect to actually have you answer.

But yeah, if you don't mind helping me, I've got some questions for you. We're here for you, brother. What's up? Okay, so I have a house that I still own in Colorado. I'm currently living in Florida. I purchased, I guess, the second house in Florida. And over the past two years, we've been living in Florida and grown to love the Colorado, and we like to go back there for the summers since I can work really from anywhere. My wife stays home with our three boys, and to further complicate things, I'm selling the current house we bought two years ago in Florida to upgrade to a larger home, and I need to know what best steps I need to take or get your opinion on what I should do moving forward with selling these homes and how you would go about it.

Oh, you still have a house in Colorado? Yes, sir. Oh, okay. All right. Because you might go back there for a couple months of summer? Correct. Yeah. Okay. all right because you might go back there for a couple months of summer correct yeah okay and uh do you have mortgages on all this i do on both of them on both okay and what do you guys make what do you make your wife stays home with the boys uh i make 210 a year. Way to go, man. You're killing it. How old are you? 36.

Okay. Okay. The house in Colorado is the old girlfriend you cut loose because you got married. Okay. Does that make sense? It does. She's pretty, Dave. She's pretty. He's still got one toe in the old pond.

Right? And that's what's going on here, because there's nothing about this that makes financial sense. Absolutely not. No, I mean, you could rent the freaking top of the Ritz for what you're paying for that house for a couple months a year right yeah so you know there's nothing about it makes financial sense it's just cut it loose man cut it it's the last thing that says i'm living in florida and use that money to pay cash for the other house it'll pay it'll pay off the other house won't it absolutely yeah man what are you doing man it's almost like i've done this before yeah yeah you got to uh when you get married you gotta what is it you gotta un uh you have to get unfollow the old girl you have to burn all the old phone numbers that's

it so yeah yeah the uh or or whatever you do in the digital world. But yeah, anyway. Yeah, did I miss something there? No. I also wonder how easy it is for the family to say, oh, no, no, no, we still got a place. We still got a place. And I don't know, everybody's just kind of playing. I don't live there anymore. And here's the interesting, listen to this.

I currently live in Florida. That's how he opened, right? But then later on, we've grown to love this and are going to make it our home. So the decision is now made, but it was like, they're both there, yeah. He still loves his old girlfriend, Dave. Well, Colorado's awesome. It is awesome. Nothing wrong with Colorado.

And his family's back there, so that's reasonable. That's nothing. Yeah, but it's causing you to make a bad financial decision that's why we're poking fun at you so at the decision not at you and in in real time this is the case then he's going to save some money and then get a really nice airbnb for the two months he's there yeah you can get it and and probably actually something more vacation-y right than the old residential suburb house he's got back there. And somebody's going to come clean up. Somebody's going to take care of the place.

Get an A-frame in the mountain, right? There you go. That kind of stuff. Because I'm guessing that house isn't that. I might be wrong. But yeah. So yeah, I'm just going to have a great life there in Florida and plan my visits back home to see the family. And do those in an enjoyable way and work there

a couple years a couple of weeks here i've got a good some good friends that are in their 40s that they do that with jackson hole uh when they first got married they spent two years in jackson hole and then they live here now and uh but they go back a lot for the summer they just love it and the summers are particularly beautiful so yeah that that's the same kind of thing you can do that and but you just you don't need to own something to do that the only way you would own something there's if everything else is paid off and you have the money for a second home and it's a toy so it'd be like a ski home or something in colorado that kind of thing a mountain home right and or it's like a lake house you know a beach house

it's those kinds it's fall in that category, but not the, not the I'm still hanging on to where I used to live home. And I'm mortgaging in the meantime, in the meantime. Yeah. Jason's in Greenville. Hi, Jason. What's up? Jason. How you doing babe? Sorry. How can we help? Yeah, just my wife and I are both teachers,

and we are three years away from state retirement here in South Carolina. And so we'll be 48 when we can retire from teaching with a pension. I'm just wondering if I should. What are are you gonna do with the rest of your life whatever makes me feel good i guess or make me happy bad plan that's a terrible plan dude don't do that hedonism leads to heart attacks um i mean we have nothing i mean we have five jobs now. I'm a chef for a boys' and girls' camp in the summer. That's not what I'm talking about.

We really, I mean, we're foster parents. Jason, neither one of these are even close, and you know it. So you're 48 freaking years old. You have another 50 years on the planet potentially chefing at the summer camp ain't gonna cut it for half a half a century okay not gonna work so what are you gonna do with your life if you can answer that question then sure that you're that's gonna be your encore career after teaching it doesn't have to be a 40 hour a week grind it might be you open a business it might be you do this or that. But it's something you put your hand to the plow.

Yeah, I mean, we are. I mean, it is cooking. That's my passion. Oh, you want to be a chef. You want to open a full-time chef thing. You're going to be a catering or in-home private chef or something like that. Is that right?

Hello? This guy's got phone problems. Whatever you do, don't go in the phone business. Yeah. You're 0 for 2 on the phone, man. Hey, this idea, and it's a weird cancer that's somehow grown out of the American dream of, I want to work real hard so I can do nothing. That is a recipe for disaster.

Relationally, physically, emotionally, spiritually. Spiritually. It'll collapse you. You will not. There's no great joy except in serving. Fishing and golf, you'll just get fat. Don't do it. This is The Ramsey Show.

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Dr. John Deloney, Ramsey personality, is my co-host. Bakersfield, California. David is with us. Hi, Dave. How are you? I'm doing great. How are you guys? Better than I deserve. What's up? My question is, my wife and I are in the process of building a home and have a construction loan. And I'm kind of newer to listening to your show. So now I'm trying to do things probably in reverse order because things are already underway. I have a 457 account from a prior employer that it's about $100,000 that I'm able to cash out, and I'm wondering if it would be a good idea to cash that out in order to try to shoot for getting it as a 15-year mortgage

when that time comes at the end of the construction loan. How old are you? 33. Are you not going to be subject to penalties on that? Because I changed employers, so I'm maxing out a four 57 with a new employer now. And I still have a pension. Um, it's just sitting there not getting anything added to it, but, uh, that wasn't my question.

I'm pretty sure you have a 10% penalty plus your tax rate on that. So it'll just be the tax rate from the research I've, um, looked into and talking to the investment, um, company that I was with. Okay. It has nothing to do with you reinvesting into the other. It's possible that you were... The 457s take several different forms, so it's possible what you're saying is true, but unlikely.

So I'm questioning that. You're definitely going to get your taxes on it yeah yeah yeah and so what's your household income um it's expected to be about 450 before taxes this year okay and so you're going to get hit with 38 percent of this you're going to lose almost 40 cents on the dollar how How much is in the 457? It's about 100,000. It keeps fluctuating. So you're going to send the government about 40 and put 60 on your mortgage if you do this without a penalty.

Yeah, that's a hard hit. Yeah. It's just your tax rate. You make a lot of money, and you're going to get taxed. I don't know what California is going to do to you, but that's what federal is going to do to you. You might have to add California into that too. Because at $450,000, didn't they just pass like a 15%

we hate the rich tax there? Yeah, I'm hoping all the things we're trying to do to reduce the income, get it below. Below what? I mean, you make $450,000. been all the things we're trying to do to reduce the income and get it below but uh below what i mean you make 450 um well you don't have enough deductions to get it down to 50 i mean yeah yeah so i mean that's the consideration is um i don't know what you're going to have from california i i i've just got a couple of friends that left there after this last piece of legislation because they said no more no more you're not taking my stuff no more so they're out um and their income earners higher than you but you know their whole reason

was that the thing was a graduated thing and it was aimed only at wealthy people and the wealthy people aren't going to stay so it's kind of interesting they're not going to get it but it's what always happens with this but the uh um anyway all that to say if you're going to do it you need to know exactly what that picture is and it's not internet advice that you need it's tax advice and then you say okay if it's 40 federal 38 okay which i'm pretty sure that's right um and there's no no 10 which is fine in your situation and then um in addition to that california is going to hit you for x let's call that 10 well now we're at almost 50 so your hundred thousand is going to be 50 000 yeah that's less than i expected yeah yeah if that's the case you may not want to do this i'm

thinking thinking there may be another angle on this uh that you want to do the good news is you make a lot of money and you got a lot of other ways to get yourself out of debt and get yourself on a stronger foundation without having to um get destroyed by a state and federal government system. So I don't know. Look at it and find out. If you don't have a good tax person, you can go to RamseySolutions.com and click on the endorsed local providers. That's what we call them, ELPs for taxes.

They're Ramsey trusted. We've probably got 1,000 of them or something around the nation that are all top notch. Sit down with one of those people, run the numbers out so that you're making the decision. What, however you make it with full disclosure to your own brain. Right.

Um, and cause I got a feeling you're smart guy. Usually dumb people don't make four 50. Okay. So I think you'll be able to figure out, Oh, I'm not doing that. Or,

Ooh, yeah, that's cool. I'm still going to do it. Okay. And you, you can move that and get comfortable with it. But what you don't want to do is just say i googled it and then tax time comes and i'm screwed because i didn't really understand you don't want to do

that there's too much money involved here so and i almost think the meta question is dave i hate even using that word but the bigger question is when you start to build a house on land it's real easy to get excited and do not at the front end count the cost and those things can get out from under you really quick and all of a sudden you find yourself cashing out retirement plan you find yourself trying to find money yeah that wasn't what he said right and I'm going I honestly I didn't hear anything in his story that sounded that way I mean I would have jumped on it but but yeah that can happen. Scope creep happens all the time.

That's a good way to call it. When you're building, the decorator forgets that there's a thing called a budget. The spouse forgets that there's a thing called a decorator. And then you get into this stuff, right? I wouldn't know anybody that that's ever happened to. I've never seen you slam the computer down ever. Not one time so uh no we've we've actually learned to do it but we the the first time we did it it was not good so

um but the um yeah what he said is he came late to this party this ramsey party and he's liking what he's hearing but he's already committed on the balls down going and i you know i i set this whole deal up on a 30 and i like what you're saying about doing a 15 so i'd rather do that that's what i heard and i actually believe yeah i believe so what do you tell folks dave when they found themselves the the ship is out out of the harbor it's in the open sea and then they find us is is it okay to land the plane wherever they with with where they took off from sometimes you gotta like i'm walking into closing i got a 30-year note i don't have the money on a 15 and now i'm gonna work to um refi this down

the road i wouldn't refi it i just pay it extra and just pay it off i mean yeah whatever i mean whatever the situation is what you've got to decide is did i do something that's going to take me 10 years to walk through and get the direction changed or if so you probably got a mess right um or did i do something that's gonna that if i really focus on the new information that i have it might set me back a year but i'm gonna keep going okay yeah then then you got to decide how big the damage is okay so if you if you let me give you an example you signed up for a closing and the payment is on a 30 year and the payment is 55 percent of your take-home pay well you're screwed right okay so what you need to do is close the house and put a for sale sign in the yard because that's you're not going to get out of that one alive okay okay but i took out a 30 instead of a 15 and i've actually got some margin

and i can pay it like it's a 15 but i never thought of that before hearing you you're not screwed right that's a different thing okay so you just gotta you gotta assess how much damage you've done to yourself now that you've got new information to measure it by. And then you can decide how dramatic you have to be about the undoing, the unwinding of all this. Interesting thing, talking about getting into debt and getting out of debt as an example. Larry Burkett used to teach this stuff. He was a guy that I used to hear a million years ago and got to be friends with him he was a christian teacher on what the bible says about money on christian radio and uh he was an icon in that space and taught me

a lot a lot and um he used to say that when they were coaching with folks they would see people if it takes you three years to get into the debt expect it to take you a year and a half to get out with if you turn the ship and be very intense. So if you've been making this mess for a decade, don't be surprised it takes you five years to get out of the mess you took. That's a good algorithm. I like that. You know, and even if you get very focused and very, because when you were making the

mess, you were kind of, you know, you're just kind of wandering. And when you're cleaning up the mess, you're very focused and intense. So you can cut the time down, but don't expect to clean up a decade-long mess in 26 minutes. Okay. You know, you expect it to take a little while. You dug yourself a freaking hole here. You know, so that's his – Larry would have never said that that way.

He was a gentleman. He was not on mainstream talk radio this is the ramsey show dr john deloney ramsey personality is my co-host thank you for for joining us, America. Open phones at 888-825-5225. Brandon is up. Hey, Brandon in Atlanta, how are you? Hey, Dave, can you hear me? Yes, sir. What's up? Hey, Dave, so I just got a hold of the Total Money Makeover about two weeks ago, and I finished it. I'm calling because i'm a

graduate uh from florida i just moved here to georgia for business purposes cool what'd you what'd you get your degree in uh marketing cool so you got the new job huh yeah yeah i actually work in the insurance industry so i just finished my pNC and life and health license. Um, but I use a lot of the marketing for my softwash business, um, which is really why I moved over here. Yeah. Sacrifice. So here's my thing. My monthly income is 27, 14 a month for insurance. Um, and I, my, my, uh, for the year, I just opened the business in March and at the end of the year, I just opened the business in March, and at the end of the year, 2023, revenue was $72K. So my debt is $31,000 in student loans and $33,000 in a Ford F-150. Kind of lost your mind on the truck there.

I know, I know. so kind of lost your mind i know i know my game plan is to immediately start attacking the student loans and then as soon as i finish that principal principal principal on the truck get that out of the way because really good for you although i have although i'm making money in my head i'm not after reading your book i'm really good changed my my thought process good you're right on track man yeah because you need you need 65 000 and you make 110 yeah yeah exactly and it's really like i'm not satisfied until i'm out of debt and i'm learning well first and foremost i want to say thank you for writing that book i mean you don't realize how much people you probably helped. Thank you for reading it.

I wrote it when you were born. That's amazing. Very cool. It's been rewritten a couple of times. We've re-upped it. We're re-upping it for the 20th anniversary. It's coming out again in April. But yeah, man, that's very cool.

I'm proud of you. You're doing good work, and you read something, and you believed it, and now you're going to act on it. You're why we're here. We're proud for you. How can we help other than that? Okay, so after I finish my debt snowball, I already have my emergency fund.

I'm going to attack my $6,000. Wait, wait, wait, wait, wait, wait, wait, wait. You already have your emergency. What's your emergency fund? How much? $1,000. Oh, your first baby step. Your little emergency fund.

Okay. Now then, when you finish getting out of debt then you build the emergency fund baby step three right exactly yeah okay so my my question is should i be i do monday all right so monday through friday except tuesdays it's a it's paid but uh I work in insurance and then Tuesday Saturday Sundays I'm running the show for the business um should I be pulling out income from that and pay myself what I'm doing now is I leave it in in the business like I don't touch that money but I don't know if I should be paying myself and then why would you not pay yourself you made seventy two thousand dollars taxable income where's that go um what do you mean in 23 you said you made 72 000 on your business was that gross revenue or taxable that was that was gross revenue oh you don't make 110 000 okay i thought you meant

you made 72 you mean you grossed 72 what's your net profit on the 72 what was your taxes on that so my taxes was 30 percent it wasn't on 72 because you didn't make 72 you brought in 72 but you had expenses exactly my net income in other words was 60 60 it was a little under 60 oh god you got a huge margin in this deal yeah i do now hardly any expenses yeah it's a learning curve like so where did that $60,000 go? That $60,000 is sitting in the bank. Great. Pay off your truck. Right? Today.

That's what I'm thinking. Yeah. I'm afraid, though, if I take $30,000. Why are you afraid? I'm not afraid. My question is, if I pull out $30, 30 and pay off the truck and i want the business to grow i don't want it to be like oh you got 30 and it's i believe it will grow i i'm gonna make sure it grows it's just it doesn't cost you anything to grow it you grew it from nothing

brought in 72 netted 60 so do that again yeah yeah you're right and that's why i was asking because people have advised me dude people are idiots i do not want to deal with somebody owning my life nobody's going to own your life you're doing great man if you take this you're going to make more if you don't reinvest a dime into this business you didn't put any money into it last year did you no if you don't reinv you don't so don't put any money into it last year did you no if you don't re-invite so don't put any money into it this year and grow it from 70 to 110 and net 80 on that there's nothing to be afraid of i hear you i'm more afraid of your truck payment than i am all this other junk yeah i just got this truck and i don't know it's all nice and stuff but now i'm

realizing like really yeah really what was i thinking and, and it's all nice and stuff, but now I'm realizing, like, really? Yeah, really. What was I thinking? And it's after reading the book. I'm going to pay both the truck and the student loan off by the 1st of June. Ready, set, go. Agreed. Okay. You're the man.

I love you, man. You're why I do this. This is so cool. Hey, he agreed on national radio. Yeah. It's a binding contract. And we know where you live. Exactly. No why I do this. This is so cool. Hey, he agreed on national radio. Yeah. It's a binding contract. And we know where you live. Exactly.

No, we don't. With his soul. That's right. That lets a lock right there. Nancy's in Charleston, South Carolina. Hey, Nancy, what's up? Hey, thank you for having me on the phone. I've been wanting to ask you this question.

So I'm going to give you the question first. Yes, ma'am. Is it waste of money to sell my rental property, even though I might lose about $250,000 from capital gains and fees and all that comes with selling the house. So, the house is... So, let me stop. Can I ask you a couple questions?

That's a lot of capital gains. That tells me that you're going to have a profit of over a million dollars on this property. Oh, wait. Okay. So, then let me give you the numbers okay all right so the house is worth eight hundred thousand right how long have you owned it we bought it 30 years okay and it was 120 000 have you have you depreciated it on your taxes when you did the taxes you know that i don't know you probably you probably do you have somebody doing your taxes when you did the taxes? You know, I don't know.

Do you have somebody doing your taxes and helping you? Yes. Okay. They've been writing the house off during the time you've been renting it, and so you have a basis of close to zero. So your taxes will be around 15% of $800,000 minus the expenses to sell it. So, I mean, you probably have maybe $100,000 in taxes. Okay, okay, good.

Who told you $220,000? I was just looking up, like, how much the capital gains are and then because my father is from a from a foreign country and I saw that it was 30 percent of capital gains and in my part would be 20 percent. No, capital gains are 15 percent in the United States. Is this in the United States we're talking about? Yes. Okay. Yeah, it's 15% unless you make over $400,000 and then it's 20%. Is your household income over $400,000?

No. Okay. Then it's 15% of your gain, and your gain is probably all of it because they probably depreciated your basis down to zero so it's going to be about going to be about 15 of 800 minus sales expenses so before you make this decision sit down with a tax professional and let them actually do the calculations not some goober on the radio like me i think i'm close, but you need to know real numbers before you make a decision on something this big from a professional. So sit down with a good tax pro,

let them calculate it out for you, and you're going to find it's going to be right around 100, but make sure it is. This is The Ramsey Show. Dr. John Deloney, Ramsey Personality. I'm Dave Ramsey, your host. Thanks for joining us. Kimberly is next. Kimberly is in Boston, Mass. Hi, Kimberly.

How are you? I'm good. How are you, Dave? Better than I deserve. What's up? All right. So here's the story. A year and a half ago, I got divorced and I remarried and my husband now and I are

trying to get situated and basically rebuild our lives and get our finances all in order. And right now, we can put it down on paper and create a budget and stick to it, but it still seems somehow that we're overdrafting our accounts at least twice a month. You wrote out a budget that causes you to overdraft? If you're sticking to your plan, your plan was to overdraft? It wasn't my plan to overdraft. Oh, then you're not sticking to your plan. I think we might have our budget off.

I think you're not sticking to your plan. Yeah, who's not sticking to their plan? Unless you wrote out a plan that says i want to overdraft intentionally you are obviously not executing the plan is that fair fair yes okay so you're not sticking to the plan why not things like pop up that we weren't aware of and things like that and I think that's where we're getting what pizza no honestly we go out to eat once a week okay like what what popped up um well I had to get a lawyer to um end up getting custody of my children from my ex um when did that pop up um that just popped up recently within the past couple of months okay and how much was that three thousand okay all right what else has popped up um i don't think we're paying attention to exactly like all the subscriptions that we have

and things like that that's not a pop-up that's a that's an intentional exclusion okay so your budget your budget's not thorough okay let's back up you're not doing as badly as you think you are okay okay and i'm not going to beat you up like you're a complete failure because you're not here's what normally happens when you start doing a budget. It takes 90 days for it to work. The first month, you suck at this because you've never done it. The first time you drove your car around the block, you weren't good at it. Okay? But now you drive a car without thinking, put on your makeup, eat a Big Mac, and change lanes.

Right? Okay, that's what you'll get to later but right now you're brand new at this and one of the things that happens when you're brand new in your first month of budgeting is you leave things out that you shouldn't have left out you just didn't know you forgot about them okay kids activities at school we didn't budget for it because we forgot they do that. Well, of course they do that. But when it comes up, it's kind of obvious. But when we were sitting down on a piece of paper or sitting down with the EveryDollar app, we didn't think of it.

Okay. Lawyers, a different category, but subscriptions, I forgot about them. And then when I, you know, when I did my budget the first month and I looked down, it robbed the money out of my food budget. And so now I'm crashing over here. Well, you won't forget about them the next month. You're either going to cancel them or put them in the budget, right? Yes. Kids' activities. We're either going to not let them go or we're going to put them in the budget, right?

Yes. What's another one? But some of these things, you have fewer and fewer surprises the longer you do this because you get better at it and all the other surprises are now in the budget okay after 90 days so after 90 days you'll be a budgeting pro it takes three months first month is really bad second month is a little better and the last month you've got it dialed in. Now, lawyer stuff, that is a legitimate, you know, that's like the transmission falling out of your car. That is an emergency you couldn't see coming, and you don't have any money, right?

Correct. Okay. So that's a different thing. And that's not really a surprise because we knew the ex was a jerk. That's why he's called the ex. But overall, the lawyer bill is a surprise yes okay so there's some things like that but but um okay uh let me give you an example uh a car breaking down is not a surprise you know a 200 alternator going out on the car a 400 alternator going out on the car it's not a surprise it

absolutely is going to happen it's just a matter of when the only thing that surprises the timing we know the tires on your car are going to wear out we know christmas is in december they don't move it it's not a surprise but it still sneaks up on people. So that's the kind of stuff. I think you're, okay, number one, recommit to beans and rice, rice and beans, no eating out, no going out to eat, no vacations. We're going to put a bunch of stuff on Craigslist and try to create some money. We may look at some extra income from doing some kind of side job, and we're going to be really really really really really focused on this and get the every dollar app out and get the budget going because it's got a lot

of categories that'll remind you of things you might otherwise have forgotten if you were just using a yellow pad to do this yeah okay but also give yourself a little grace it does take three months to get good at it no one does it the first month perfectly. There's no one that nerdy. If they were that nerdy, they were already doing it. All right, Kimberly, I want to ask Dave a question, but I'm going to use you as an example. Is that cool?

Sure. So, Dave, here's a concern I have across the board, and that is you make your first budget or your second budget. And then if you've committed to live in a debt-free life and then a $3,000 expense pops up, that's pretty high. So let's say a $600 expense pops up.

Okay. You're going to have to go into those other categories. If you're going to stay committed and you're going to, okay, we're going to have to figure out how to do groceries for 75 bucks instead of 125.

We're going to have to figure out how to turn the air conditioner down. We're going to have to, or up. We're going to have to figure out how to do groceries for $75 instead of $125. We're going to have to figure out how to turn the air conditioner down or up. We're going to have to. Well, you're probably going to go pick up a job. Or go get a second job. But this idea is like, no, no, no, we're going to go out to eat once a month. We're just going to overdraft. What I don't want us to ever lose sight of is if something happens, something happens. If the wind changes, you have to adjust the sails.

It's uncomfortable. It stinks. It's not what have to adjust the sails. It's uncomfortable. It stinks. It's not what we planned, but it is. It's a reality. No, I shouldn't say if. When the wind changes, adjust your sails. Because there's going to be stuff that's unexpected come at you, and then you go, okay, how are we going to handle this?

So, like, to John's point, Kimberly, one of the things Sharon and I did that we've had to teach other people to do, but it came natural to us. We were bankrupt. No one would loan us money. So we didn't have an option. We don't borrow money, but we also can't borrow money at that time, right? So we had to figure it out without debt.

So we had to figure out, I've got to put something on Craigslist and sell it. I've got to go work a side gig and i need some money by friday oh my god you know and so we had to anytime something came up that hit us right square in the nose we had to figure out increase the income and sell something and decrease some of the categories temporarily till we can get around the corner of this we didn't have a choice and so what our encouragement is is to take overdraft which is a form of debt off the table disconnect your disconnect overdraft and quit never ever ever let something come out of your account that causes

overdraft again ever again pretend like you're running a company for someone else and if you ran it this poorly they would fire you okay and um it just creates a sense of fire and urgency yeah there's this absolute um you know absoluteness that's not a word to this idea this there's this you don't have an option and when you kind of when you burn the boats and you can't leave you've got a deal with what's in front of you'll innovate and figure it out exactly you you got to innovate you got to adjust the sales so you're better at this than you think you are and what you're facing the the distress and the frustration and it it was kind of knocking the confidence out of you like this may not work i may not be able to do this you can do it you can do it what you're feeling the emotion you're feeling and the actual experience you're

having is very normal the trick is don't agree to live in it make a make adjustments so you don't live that way okay okay you can do this i'm proud of you yeah you got have you guys been through financial peace university we have not yet i oh you need to go through i'll give it to you you got to go through it yeah i'll give it to you. You got to go through it. Yeah, I'll give it to you, and I'll give you the EveryDollar app connecting to the budget, too, the upgrade, the premium. So you got the whole kit. If you'll go do this stuff that I teach you, it'll work, Kimberly, 100%. But it never works instantly.

We don't sell microwaves. We're in the crockpot business. It takes a minute. You got to cook it, baby. You can do it. You can do it. You can do it. This is the Ramsey Show. Take care.