The Ramsey Show - App - Build a Solid Present So You'll Have a Better Future (Hour 1)

Episode Date: May 29, 2020

Budgeting, Investing, Home Buying, Savings Tools to get you started:  Debt Calculator: http://bit.ly/2QIoSPV Insurance Coverage Checkup: http://bit.ly/2BrqEuo Complete Guide to Budgeting: http://bit.ly/2QEyonc Interview Guide: http://bit.ly/2BuGnZE Check out other podcasts in the Ramsey Network: http://bit.ly/2JgzaQR 

Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studio, this is the Dave Ramsey Show, where America hangs out to have a conversation about your life and your money. I'm Chris Hogan, and joining me today, co-hosting with me today, is Anthony O'Neill, Ramsey personality. A.O., how are you? Man, C.H., I'm doing good, bros. Chris Hogan, that sounds pretty unique to say C.H. I like that, though. I like that. you? Man, C.H., I'm doing good, bro. Chris Hogan. That sounds pretty unique to say C.H. I like that, though. I like that.

I like that, man. Hey, we are excited to be here with you. And guess what? We want to take your questions. So give us a call, 888-825-5225. Again, that's 888-825-5225. Call us. Kelly is ready to be able to help you.

And you can also find us on social at Ramsey Show. A.O., you are big on social as well. Tell the people where they can find you. You can find me at Anthony O'Neill both on Instagram and YouTube. Just launched a brand new show on there called The Table Man. We're having an amazing conversation

where we're keeping it real, relatable and relevant around the topic of money and really dealing around that millennial young person age. Oh, gotcha. So just really bringing our content to that age bracket and just teaching them how to get out of debt, how to build wealth, how to really learn what their net worth is, what you're really big on in building wealth.

So at Anthony O'Neill, you can come follow me. And Chris, I got to say this before we go. I got something special launching Monday through Friday next week. Monday through Friday. Monday through Friday. Monday through Friday. I pulled in a panel of single people, and we're talking about money, relationship goals, couple goals. Should you date if you're broke? Should you date if you're not on the budget?

Should you date if you are just young? So we really have a good conversation, man. So it's Monday 8 a.m. Central. It's going to be a phenomenal time. And where are you doing? Are you doing this on YouTube, Instagram? Where does it happen? YouTube.

So you got to go to YouTube.com forward slash Anthony O'Neal. It's about 100,000 followers over there. But I want you to join because the conversation, we really get deep. And it's not just about money, but it's about life. And so we just really have a good conversation around just all things around single people. But, of course, we talk about money and our Christian walk as well. That's fantastic. All right.

Well, listen, you can also find me on social at ChrisHogan360, and we'd love to be able to hear from you. So we are going to jump to the phones. We've got Brooks on line one. Brooks, how are you? Good. How are you all doing? Oh, man, we're focused to not finish. How can we help you today?

So my wife and I, we are 25 years old. We're debt-free. We are both in law school, so we just finished our second year. So we've got one year of law school left. We've got, after we pay for next year's tuition, we'll have about in between $110, 110 and $120,000 left over. Um, and so we're wondering what we need to do with that money. We've obviously got enough for our emergency fund in there. Um, but what to do, you know, with the remaining hundred or so we're kind

of, you know, in limbo about, man. So what do you, what do you in limbo about man so what do you what are you in limbo about real quick uh there brooks as far as in what to do with the money we should right right what to do with the money whether we should invest it whether we should just you know start a retirement account those types of things we really don't know what to do with that extra money where did it hey brooks where did this money come from yeah um we were working saving um just we've been working and saving since we um met we just got married uh about two months ago but we were both working and saving independently before we met each other and we got married we obviously combined our money okay congratulations so you guys are both in law school you've got one more year to go

yes sir and so is this money to be used to cash flow law school for next year? Well, it is. So we've got about $140,000 now. And so after we pay for our final year, we'll have about $110,000 left over. You guys, man, I'll tell you what, you all have done a great job saving. That's fantastic. Well, here's what I would tell you. I love that you've got school paid for.

I would definitely do the emergency fund. I'd probably go on and just plop a six-month emergency fund in a money market account and let it sit there. But here's the other thing. I would also, that extra money that's there, I would go ahead and start to earmark that as potentially your home down payment. Right. So here's the other thing about that, because that's what we both envisioned, but we think it's a fairly decent chance that we won't be owning a home for a while because I'm fairly confident

that I'll enter one of the military branches as a military lawyer. Gotcha. So that's the other thing. We don't really want to buy a home for a while since we'll be likely in the military. Okay, and about how long do you think it'll be, Brooks, before you're ready to buy a home? Maybe 20 years or so, probably, because we're moving around every couple of years.

Okay, well, then that would solidify it for me. And number one, thank you for wanting to serve in that capacity. A.O., if I'm him, Brooks, and if I'm you, I'm going to start to invest that money. You're going to have military housing. You're going to have a chance to put that away. I'd do a six-month emergency fund. I'd take the rest of that, sit down with the SmartVestor Pro, and start to let it grow, A.O.

Yeah, I agree with you on that one. And then I would definitely say even sit down. 20 years is a long time without buying a home. So I don't want to rush them into that process. But at the same time, sit down and write the vision and see, because that means you'll be almost 45 before you purchase your first home. So I would maybe love to see maybe you can do that maybe around 35. I'm just going to be honest there. But I love the fact of you getting that emergency fund, start investing that like Chris Hogan said, but then also sit down and write a

vision for your life. Where do you see yourself? Where do you plan on retiring? And maybe if you get into your city and you're going to be there for at least five to plus years, then I will consider purchasing a home if you're going to be in that city for five more years. Yeah. And the only question with him is being in the military, being moved around. Exactly. You know, and so i like the idea and i think you guys brooks can continue to save i would go ahead in your budget and budget a dollar amount you're going to put toward that uh and and continue to save and when you get done serving the military you've got an opportunity to come out and be able to pay cash there's no

reason you can't pay cash for a home yes that's fantastic. I mean, 25, Hogan? 25 years old? These guys have $140,000 saved up, Anthony. It's not an accident. Yeah, and let's call this out. No one gave it to them. You asked them. They worked and they saved.

That's right. So no one just handed them this money, and a lot of people think you cannot work and save and have a lot of money. Well, it's proof in the pudding right here. Hey, Ayo, and not only that, they're cash flowing going to law school. Come on. Okay, for both of them. Yes.

And so you, now I know you're on this thing here because something tells me you got a little quick readout. Yes, yes, sir, I do. Tell the people about it. It's opposite. I'm helping people get to this young man's level because a lot of people cannot. They did not cash flow their college experience. So I came out with a book called A Quick Read book called Destroy Your Student Loan Debt, where I'm teaching young people and all people how to get out of debt quickly with their student loans. So this is not really the quick read for our current tribe who's been rocking with this for a few years. This is going

to be to someone who may not be familiar with our teachings because it's simply a deep dive into baby set number two. I'm teaching them how to refi and if this is the best option to refi. I'm even explaining to them, you know, hey, why I do not like student loan forgiveness. But if someone really wants to get out of student loan debt, this is the best thing. It's going to be 64 pages long, about an hour and a half read, and it's a great, great option. That's fantastic. Listen, you have an opportunity to be able to get your book today for $10 at anthonyoneal.com or call Ramsey Concierge's team at 888-22-PEACE. This is The Dave Ramsey Show. You know, most of us are spending a little more time at home than we used to. And with that extra time comes cleaning out closets, working in the yard,

and if you're smart, protecting your family with term life insurance, especially when Zander makes it so easy. Look, Zander is open for business. Their whole team is equipped to work from home at full capacity, and they are ready to help you find the best rates from the top insurance companies in the industry. Their commitment to serving their customers, even through uncertain times, is just one of the reasons that I'm a client and why I have recommended them for over 20 years. Don't hesitate on this, folks. No matter where you are in the baby steps, if you don't have your term life insurance, then move this to the top of your to-do list. Visit zander.com or call 800-356-4282. While rates are low, now is the time to get

this taken care of. That's Zander.com or 800-356-4282. Hello, America. You are listening to The Dave Ramsey Show. I'm Chris Hogan. And joining me, co-host Anthony O'Neill. We are very excited to be with you. And if you're not aware, I have a show as well. It's called The Chris Hogan Show. And one of the segments that I absolutely enjoy doing on that show is called Did You Know?

And, Anthony, on that, I try to give people information that maybe they did know or maybe they didn't. By people that listen to the show, they're on the ball, so I try to throw them something every once in a while. But I want to share one today. I wanted to share with the American public, did you know that right now, according to all the stimulus stuff that's being done, the extra $600 a week that's currently available is set to end on July 31st.

Okay, so that means the extra $600, along with any unemployment people are getting, this is set to end on July 31st. So what this means is that we need to be into conserve mode ASAP. You need to be holding on to money and being extremely intentional about what you have, not being frivolous with it, but being very smart. And, Anthony, people have got to get ready to get back to work. That's good, Hogan. I like that, man. Do you, in your expertise from your studies, do you think that the government may extend

this a little bit? Well, I don't know. I know right now there's all kinds of discussion from both sides of the aisle, Democrat, Republican, about what to do. And I don't know. I'm going to be honest with you. I don't know if it'll get passed or how it'll happen. But here's the thing. Regardless of what happens on that end, in order for us to get back, we've got to get back to work.

Come on, man. And I think it's really important. And so, you know, I'm encouraging people out there, get ready. You know, get your resume polished up. Get intentional. Come on, man. want guidance with your career or job hunting or job search, I know Ken's got a lot of great resources there. So I would like people to see that information and get plugged in. All right, we're getting back to the phones. If you've got a question, give us a call. The number is 888-825-5225.

And joining us now is Jeremy on the line. Jeremy, how are you? Hey, I'm doing well. How are you guys? Oh, we're focused and not finished, my friend. What's on your mind? I like it um i had a quick question i just started investing and the mutual funds i've been looking at are i got into the four that dave suggests but there's three thousand dollar minimums and the guys at the place that were advising me told me there's also ETFs I can do.

And I'm wondering, do I wait until I have the $12,000 to get in all four that Dave suggests, or do I try doing ETFs? Okay. And the individual you went to talk with as an investment professional told you you needed $3,000 in order to start it. Well, it's on Vanguard, and when I tried to invest in the specific tickers, it said there was a $3,000 minimum. Okay. I want you to reach out to one of our smart investor pros. I want you to go to DaveRamsey.com.

You'll be able to get connected. You can get started right now, my friend. But here's the reality. ETFs versus mutual funds. Here's the deal. ETFs are traded a lot like single stocks, meaning that they're traded all throughout the day. And so the price can ebb and flow. And so it's treated a lot like a single stock. So fees can be higher. It can be a little bit more costly. They're a cousin to a mutual fund, but the mutual fund is still going to be the best way to go.

The growth stock mutual funds where you hit all four categories, growth, aggressive growth, international, you're going to have an opportunity to be able to build wealth over time. And remember, Jeremy, you invest for something five years or longer. So in that vein, ETFs are okay, but they're going to be more expensive, and you're going to have better options and better longevity with a growth stock mutual fund. So that's the way you want to go. As I said, reach out to a smart investor pro so you can start to get connected today. And, Jeremy, before you start investing, because you sound young, man, I just want to recommend that you follow the baby steps that we teach.

So I love the fact that you want to start looking into investing, but make sure that you're out of debt and make sure you have a fully funded emergency fund. I would hate for you to start investing into a mutual fund and you don't even have a thousand dollars in your bank account. Okay. So I love the fact that you're asking the questions. That's a great question. But I just want to make sure that not just you, but those listening right now, that before you start investing, take care of your priorities today so that way your tomorrow is taken care of today, if that makes sense.

No, it does make sense. And I'm going to jump over to a social question that came in from Blair from Facebook because she says, do I really need to stop contributing to my 403B even if they match it at work or should I just lower it down to 5% so I can get the match? Well, Blair, here's the reality. First and foremost, if your income is stable, meaning your hours have not been cut, your income is solid, then you can keep investing as you have been and keep going.

However, if your hours have been cut or you've been furloughed or laid off, now what you're going to do is pause. Okay? You're going to pause investing right now until your income gets stabilized. Or here's another scenario of when someone's going to pause investing. If they've got debt. Come on now, Hogan. Now you know that, man.

But the people may not. Come on. Yeah. Here's the thing. You do not want to invest into your future when you're on a rocky foundation right now. So what I want you to do, and this is what you teach all the time, Hogan, in your space, is that, you know what? Build a solid future. I mean, build a solid president you can stand on so you can build a solid future.

Yes. And a strong future. And I think studies are showing somewhere if you're in debt, you're investing maybe like 1% or 2%. Well, we teach here we want you to invest 15%. So you're going to actually catch up and pass where you would have been because now you can focus solely on your future and not your past. I'm so glad you brought that up because a lot of people will see that and they'll go, but Hogan, I don't want to stop.

I understand. But you've got to clean up the mess. You've got to get out of debt. And I don't think people understand the power of what you were just talking about, meaning taking the time to get out of debt and then getting to that 15% and doing that over time, you're going to give compound interest an opportunity to do an amazing thing for you. Yes, sir. Yeah, no, that's the way to go. And it's a great opportunity. So again, you guys, I know you hear us talk about smart investor pros all the time, but I'm going

to tell you something right now during this time, if you've got questions about your 401K or you've got questions about your investing, I want you to reach out and get connected with the SmartVestor Pro. Have a conversation. These are people that will talk with you. And I'm going to tell you something. That's a difference. You want people to talk with you, not at you. So it's really important for you to have a real conversation.

Yeah, I agree. Let me ask you this question. What would you say to a young person right now, and they work for a company and they do not match? Would you suggest that they still invest into a 401k that the company is not matching? Okay, so what I would do in that scenario is if A, if there is not a match available, then I'm going to invest, but then I'm also going to go over to the Roth IRA and go to there and then go back to the 401k to get to that 15%, if that makes sense. And so, you know, again, when you hear Roth, I want you to start to get tingly. I know I do. Like the one hair on my head starts to wiggle. Because Roth means after-tax dollars.

It means it's going to grow. Tax-free growth is going to give you an opportunity to keep building your foundation. Okay, A.O., I'm going to hit you with a social question. I got this thing in here from Matt. He says, my wife and I are working hard to knock out our student loan debt. Right now our student loans are in forbearance, so there is no interest until September. Should we keep making payments or save the money we could be earning interest on in a money market account for a few months and then pay it off? Well,

if there's one thing I want to acknowledge that just because your loans are in forbearance, it doesn't mean all the time that you're not you're not gaining any interest. It just simply means you don't have to pay your interest and your payment until it gets out of forbearance. That's on some of them. Now, some of them do counsel the interest. So what I want you to do, number one, is research and make sure that you're not gaining interest. Number two, my thing is if you have a job and if you have an income coming in, I want you to go ahead and start attacking your student loans right now and get out of debt. I am not a fan of just sitting there and letting stuff just get into my future.

No, I want you to attack it right now. Now, Hogan, if they do not have a job, if they do not have income coming in, I want them to take care of their four walls, and that's something that we teach here. But if you have income, which I'm guessing by this question from what I'm seeing and what I'm guessing, you do have income, take it out of forbearance plan and attack it right now. Yeah, keep making the payment. Like, here's what concerns me, Edo.

These student loans right now are in forbearance until September 30th, right? What's going to happen on October 1? People are going to get a serious wake-up call, and that payment's going to come a-knocking, so you better get ready. Let's wake up, people. This is your financial future and

your money. You've got to have a plan or you're going to wish you did. This is The Dave Ramsey Show. Folks, since you're spending more time at home these days, why not make the most of it? Now, I know not everyone has the means to do a full renovation, but thanks to our friends at Blinds.com, there are some small changes you can make to help improve your home. Blinds.com makes it incredibly simple to shop top-quality blinds, shades, and interior shutters from home with easy online ordering and free shipping right to your door.

Listen, window treatments are a simple project that you can do that really benefits the look and feel of your home. And if you're nervous about doing it yourself, well, don't be. Blinds.com has helped millions of homeowners through the process with free design help by phone or online. Plus, they guarantee the perfect fit for your windows. Go ahead and get started today. Go to blinds.com to take advantage of this week's special offer. Rules and restrictions apply. Hello everyone, you are listening to the Dave Ramsey Show. I'm Chris Hogan, joined with my co-host Anthony Anthony O'Neill.

And as always, we're having a good time. Oh, man. Listen, we are opened in here. If you are ever in the area, if you're in Nashville or Franklin, Tennessee, you need to come by and visit us. We have got Baker Street Cafe. Melissa is over there. She is a rock star and will take care of you with some coffee and some cookies. But just come by and visit. You can watch the show live. You can even check out the debt-free

screen, which we have going on here, and it's just awesome. So come by, visit the new office if you're ever here. All right, we're going to get to the phone lines. We've got Hal on the line. Hal, what's on your mind, buddy? Hey, thanks for taking my call anthony and uh chris i appreciate all you're doing during this pandemic sure so we have a 20 we have a 22 year old son and just looking for some advice on he keeps asking us to borrow money so he's living on his own and um you know we're a little bit new to team ramsey and so you know i'd like our son brandon to get involved with that. But I don't think he's very receptive to it. Just an Anthony here, young person relative to our son, of course. So just wondering what you two would suggest.

Yeah, Hal, give me a little bit of background on your son. I see he's 22 years old. Does he have any education? Is he working right now? Is he living with roommates? Yeah. So he's not into the college thing right now so he's just working um he's renting and living on his own but he has a

good you know friend there in the building um but yeah he's uh i forgot what else did you need so anyway yeah what is his work in high school diploma of course okay and then what is it how course. Okay. And then how much does he make in a month? He makes 15 an hour, sorry, 15 an hour, a little times 40 hours. Okay. So not a lot. You know, I think the motivation part, and Hogan, you can talk into this as a father, from a father perspective, I think from a young person's perspective, one of the key things that my dad did for me that really shifted my mindset was he stopped giving me stuff. He stopped helping me. He pretty much said, son, since you think you're a grown man, you got to live with your decisions. And even if it meant that I was going to hurt a little bit, I was going to feel something. I

remember one time I asked him for some money to pay my electricity bill. He said, nope, you're going to sit in the dark until you can pay it. And that was the last time I ever sat in the dark because my dad taught me that if I'm going to be a man, I have to now start taking on the responsibilities of a man. And so I think the very first thing is how you have to stop helping him as long as it's not, as long as it is not life threatening uh but if it is just some money here to pay a car note to pay this to pay that no you got to let him sweat sweat that out a little bit you gotta let him feel it because that's the only way he will become a man yeah how how did you ever teach him about money at all growing up you know know, we did and we didn't.

I'm not trying to be evasive. Like I said, I've really poured into Team Ramsey via this pandemic and stuff. So I've gotten way smarter. I've seen all the things we did wrong. You know, it's all so relative, right? We're just an average middle class family. Hey, buddy, we have all done wrong

and done some stupid with money. Yeah. It really is. Sure. But I would tell you this. How many other kids do you all have? He's our only son, only child. Okay.

I would say, you know, I'm with Anthony. I want him to learn. I want him to start to build and grow. But I'm going to tell you this. You're always going to be his dad. Yep. And I think you having the heart to be able to help him and guide him is always important. But I think it's time to sit down and have a conversation with him and say, hey, you know what?

What are your dreams and your goals? What are the things you want to accomplish? And to be able to help him map it out. I welcome you. You said you're new to Team Ramsey. Well, guess what? Bring him in, too. And you've got a great opportunity.

I'll tell you what we're going to do. We're going to send you both copies of the Total Money Makeover. Kelly will get your information and send that to you. And you guys have some conversations. Go to lunch once a month and have some conversations about a topic of the book and just begin to have dialogue about it. I think too often times as parents, we overthink stuff. We think that we have to have a preaching and a teaching when reality, you can have a conversation. And I think that would give you a great opportunity to be able to move forward and help. And you know what, Hogan, too, for the parents listening right now, I want to suggest that, you know, it's okay to say no. Yes. It's okay to tell your son or your daughter no i i can't help you it doesn't

mean you don't it doesn't you don't want to know what you're pretty much telling them is um you have to go out there and get it done yourself because i'm not going to be here for the rest of your life and i i get frustrated with parents and i see this often with especially within this young generation a 30 year old can come home to his mom and dad and ask for money to buy groceries, but then at the same time they have on the latest pair of Jordans. And so it's like parents, you have to say

no. And stop saying borrow. No. If you're going to give him money or her money, you're going to give it to them, but stop giving them money and let them live out their own consequences. And it may be a good consequence or a bad consequence, but they got to reap what they sow into their own life. Yeah.

No, it's a great opportunity to be able to grow forward. All right, let's get on the lines here. We're going to continue. We're going to, we've got Juliana in Florida. How are you? Good, Chris. Thank you. How are you?

Oh, we're focused and not finished. How can we help you today? Okay, so I'm in a little bit of a dilemma. I'm so blessed that I got through to you guys today because this is kind of like somewhat urgent. My boyfriend and I have been together for five years. We're currently saving to buy a house. We have $12,000 so far. It was our goal for the last two years.

And, of course, life happened last last year and we weren't able to. So then we started resaving again this year. I have to move out. We have to be on our own. I want to get a house. Where are you living now? Right now I'm with my mom. I have a,

I have a 10 year old son. So, you know, things have just been, you know, I've been kind of, I've been living foolishly, you know,

and my mom introduced me to a Peace University a couple years ago, and it really woke me up and turned me around and changed my mentality on how I want to live my life and where I want to go. Thankfully, I was able to bring him on board as well because we were both living foolishly. We weren't focused or determined to do anything but spend our money. Anyway, we both have got a used truck. We both have used vehicles. We don't have any debt.

Thank God. We're on baby step three, along with saving debt for the down payment of our house. He has a used truck that we put a new transmission in last year, and now it needs something else. We're still waiting on the diagnosis from the mechanic, but he's thinking worst-case scenario is a $3,000 bill. He wants to – he's adamant about trying to talk me into getting a new truck. I don't want to –

Hey, listen. Hey, listen. I mean, yeah. So let me get this straight. You and your boyfriend are living at home with your mother, and then y'all are trying to make moves together to go buy something and you guys are not currently married right now am i hearing this correct correct marriage is on the table though marriage has been discussed we both want to get married okay but we want to have our house first okay well hold on hold on yo because i know what you're gonna do oh. Just hold on. Wait for it.

But let me talk. So he wants to buy a new truck. In his mind, he shouldn't fix it. He should buy a new truck. And I don't think that's a good idea. Why don't you think it's a good idea? Give me the two reasons.

Well, what I'm scared of is that we're going to lose the money that we've saved. Obviously, we will because it's going to go into a new truck. But also, if we are not buying it cash, you know, we're not going to be able to qualify for as much of a house as we would if we didn't have any debt-to-income ratio. Right. Because right now we don't have any debt. Right. Well, okay.

So here's the reality. Let me hear, and I'll toss it to you. So the truck, it would be a dumb idea. That would be something that is counter to what you're doing. The problem is, is you guys are playing house. And you are in the process of trying to make decisions, and right now there's no unity. And so I would say, definitely do not buy a home until you guys are married. Just bottom line.

I wouldn't. You are, you're not united right now. And so a truck or something along those lines, not only would it mess up your qualification, but you know, right now you guys need to make it, please smart. You said it. You said it. Nice. I don't, I don't need to say nothing.

You did? Okay. A.O.'s tongue tied. When we come back from the break, I'm going to untie his tongue and get him to tell us what he was thinking. But we're also going to talk about some lessons that we've learned during this COVID situation. You're listening to The Dave Ramsey Show. so so Folks, I love telling you about well-made, well-thought-out products. Today, I'm talking about Grip6 belts.

I don't know about you, but I'm not a fan of traditional belts. They never fit right, and they're uncomfortable. Grip6 belts are unique. Owner BJ designed a truly modern, minimalist belt made of high-quality materials with no holes, no flap, and no bulk. And the buckles come in really cool designs and are interchangeable. I personally own these belts in different styles and talk about affordability, Grip6 belts come with a lifetime guarantee. And that means if you no longer like or fit the style of your belt you can replace them for free plus i like the way these guys do business grip six is determined to help build and modernize

american manufacturing to learn more and get this month's dave ramsey special visit grip6.com that's grip6.com. That's Grip6.com. Hello, everyone. You are listening to The Dave Ramsey Show. I'm Chris Hogan, and co-hosting with me today is Anthony O'Neill. And on our last call, we had a lady that was living with her boyfriend, or they were talking about buying a home together. And it was one of those AOs, started blood pressure went up.

I could feel it. And it was a comeback here, Anthony. I want you to talk about this. What do you, people who are living together, or what's your thoughts on this as they're trying to move forward and do financial things together? Yeah, man. I want to thank you for stepping in and allowing me to calm down a little bit. Because the reason why I got so passionate about that message is OK and that it is a good move to move in with someone. But let's backtrack on that call. They are they don't live on their own. They live with their mother. OK. And so for me, one, here's the very first thing that I see this.

We're not taking care of our priorities. And so our priorities is ourself. We need to build ourself up first and do things right. Why do you want to go out there and build something with someone that can bounce on you tomorrow? I'm sorry. For us non-hip people, what does bounce mean? I mean, as in like, leave me tomorrow.

Thank you. And people can say, well, if I'm married, he can leave me tomorrow. Yeah. Yeah. But the likelihood of that happening is nowhere near to what a boyfriend and girlfriend can do to each other. And so here's here's my thing. Here's just my suggestion to the world. Before you try to build something together, build something on your own. And when you build something on your own, do it the right way when it comes to marriage as far as in building a home, a house. Why do you want to purchase a house with a boyfriend or a girlfriend? You want to build something with your husband, with your wife, with your partner, with your lifelong partner.

So that when you build something, you can build something on top of that. We've seen stories where boyfriend and girlfriend moved in together, bought houses, bought cars, and in the long end, it was a huge headache. Oh, listen to me. I can remember a couple that were dating, bought a car together. It got so contentious that they were rotating the car

every other week after they broke up. And so eventually, someone just took over the car and bought it out. So you're right. From a stability purposes, it doesn't make sense. When you can go to the justice of the peace and go on and get the I do's done. Yeah. Yeah. Yeah.

And then here's the thing, man. Just get married. You know, if you guys are already living each other, acting like you're married, living like you're married living like you're married just get married go down to the courthouse and get married and be and do life together because here i have to ask i have to ask this question if you're living together and you're doing all the marriage stuff but you then you're not married well what's the problem are there doubts inside your head so why are you living together if you have doubts? So just get yourself right, build yourself up together, and then get married, and then go out there and build something big.

There you go. Do you feel better now? I feel a lot better. Thank you for allowing me to calm down. Because you were all twitching and everything at the break. Kelly was looking at me. Kelly, we had to get this done. So, all right, listen.

America, if you're out there, you got a question, I want you to call us. 888-825-5225. Again, that's 888-825-5225. Call us. Kelly's ready to take your call, and we're always excited to be able to help you. All right, we're getting to the phone. We've got Amber on the line. Amber, how can Anthony and I help you?

Hi, there. Oh, my gosh. I've been searching all over this of you guys i just want to say that really quick um so i am 21 i actually just announced only like nine months and i am currently on baby step three i'm probably going to be done in the next couple months congratulations thank you so much um so yeah i want to work towards the rest of my baby step three and then go towards baby step three B just to really set myself up. I'm currently reading a book, and I'm ready to be an everyday millionaire. So I'm just kind of wondering your take because I did pause my 401K contributionally.

Okay. I don't want to wait too long to lose any of that interest. Right. So that's kind of my big question. Okay. So, Amber, how much debt did you pay off? Tell us. I paid off just under $10,000 in 10 months.

$10,000 in 10 months. And what was your household income at that time? I made $22,000 a year. $22,000 a year. That's fantastic. I've got to know, who taught you about this money stuff? Oh my gosh. So I actually have a friend, an old co-worker, that taught financial peace at her house. And this was maybe two, three years ago. I was just like a little teenager,

didn't have any money problems at that point, didn't really have money in general. And I kind of just forgot about it, went to that one class. And then years later, last May, actually, I got a whole bunch of dental and medical debt. And it just kind of all hit me at once. And I remember Dave Ramsey. And I came across all the rest of the Dave Ramsey personalities. And here I am now. So definitely gazelle intense. Well, you are gazelle intense, and I'm proud of you. I like the idea of Baby Step 3B with you identifying a dollar amount that you're going to save for a down payment. And, again, how many years away are you from buying a home? What's your goal?

So I really, that's where I'm kind of stuck. I mean, 21 is actually, I'm going to be 22 tomorrow. Oh, happy birthday. Happy birthday. Like in a couple years. Thank you. So, yeah, I'm going to be 22 tomorrow. Oh, happy birthday. Like in a couple years. Thank you. So yeah, I don't know. It's more like I don't want to pause my 401k too long.

And that's kind of where I'm at is I don't really know that dollar amount. I'm thinking like 10,000, maybe 15, but I just don't want to wait too long to lose that. Okay. I can respect that. Well, here's what I would do. I think you've kind of hit the nail on the head, and Anthony, I want to hear your thoughts, but, you know, coming up with a dollar amount, maybe it is $10 or $15

is kind of the goal that you're going to set aside and call that Baby Step 3B. And for everybody out there, if you're new, Baby Step 3B is where you're saving up for a home down payment, right? This young lady is focused, man, and definitely not finished. But Amber amber once you

get that set dollar amount 10 to 15 grand i would say get over into baby step four start investing and growing your money yeah i agree with you too hogan now i have much to say on that as well i i love the fact that she's just 21 and she's thinking you know she's stepping back saying okay i want to invest but then i also i know i want to purchase a home like she's like all right so i love the fact that she's actually sitting down and processing her thoughts my suggestion to this young lady is put your thoughts on paper put your plan on paper and stick to that plan yeah absolutely ao 21 years old were you thinking like this man no man i was i was man i don't i don't even want to say what i was thinking at 21 i, isn't it cool to hear young people? I mean, I wasn't thinking like that either.

I mean, I was planning. I was trying to, you know, grow money, but I wasn't intentional. I didn't have a plan. At 21, man, the average 21-year-old or most 21-year-olds are thinking, how do I look good? How do I impress my friends? You know, how do I enjoy life? Not how do I build for my future? How do

I stack money? How do I build myself as an individual? And that's what this young lady is thinking. Yeah, she's thinking outside the box. Amber, I'm very proud of you. Happy early birthday to you. But stay intentional with what you're doing and the plan that you're on because you are doing a great, great job. All right, let's get to another call. I've got Eunice on the line. Eunice, how can I help you? Hi, how are you, Chris? Oh, I'm good.

How are you? Good, and Anthony, thank you for taking my call. Yeah, yeah. I listen to you guys twice a day. I'm on Baby Step number two. Okay. I have a mortgage that through a divorce situation, key file bankruptcy, landed in my lap lap trying to do the right thing.

I had younger kids at the time trying to save the house. And I owe like $484,000 to Bank of America for 40 years. I went and did the whole, you know, where they save the house for you. But after the smoke landed, I realized what had happened. All the seas and everything that was tacked on. And the house is probably worth like $350. Wait a minute. How on earth do you have that much?

You owe $484 and it's worth $350? Right. Yes. Because what happened is like he was filing bankruptcy. So every time I called, they weren't dealing with you until it was kicked out of his bankruptcy. Now I stepped in to try and save it. It went on, like, three years. So I was just on the phone the other day with Bank of America. I was sitting home all this time making all these phone calls going, finally getting a person and saying,

what about, what are all these fees? What are these fees? And they're like, well, basically what they told me is I was paying for all the bankruptcy fee court charges and stuff that went on. Well, hold on a second, Eunice, because you're going to need to reach out, get a real estate attorney to be able to walk through this and look at it, because this isn't right. And they need to unpack that and explain it to you. Okay?

So you get the facts and the details. Listen, everyone, I want to thank you for calling in and tuning in. I want to thank your producer, James Child, and associate producer, Kelly Daniel. Thank you, Anthony O'Neill, for joining me in studio. I'm Chris Hogan. This is The Dave Ramsey Show. America, we believe in you. This is James Child, 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.