The Ramsey Show - App - Calm Down - You DON'T Have to Run for the Hills! (Hour 3)

Episode Date: April 20, 2020

Chris Hogan, Home Buying, Taxes, Debt, 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 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'm Dave Ramsey, your host. This is your show. It's all about you. The phone number is 888-825-5225. And joining me this hour, Ramsey personality, number one bestselling author a couple times over, Chris Hogan, the trusted voice of finance in North America. that there is a piece of legislation that's been in place for many decades called the Federal Fair Credit Reporting Act,

which is how consumers interact with the credit bureau. And there's also the Federal Fair Debt Collections Practices Act that dictates the things that collectors can and cannot do. That's right. And they violate that pretty much wholesale. Not all of them. There are some collectors that run a clean shop. But the credit card collection industry is an example,

pretty much universally scum, pretty much violate that. And, of course, one of the things that happens when a collector doesn't collect is they sue you and get a judgment lien against you, and then they take the money out of your bank account. This article saying the IRS began sending out payments this week for the Care Stimulus Act, starting with those who already had bank account information on file, so the IRS could do direct deposit. For others, the IRS will send out paper checks, though that will take weeks or even months for people to receive those.

A collection agency can't garnish the check unless you deposit it into an account it has access to. To avoid having the stimulus payment garnished by a debt collector, monitor your bank account closely and take out the money as quickly as possible if they have a lien against your account. So what's ending up happening is the collections industry has been stimulated. Oh, absolutely they have. And they're going to continue to reach in and to grab whatever they can. That's alarming, Dave.

Yeah, and, you know, this happened for a long time when we first started seeing it when Social Security recipients, instead of getting a hard check in the mail, which they used to kind of be beautiful checks, actually. They were very ornate. Mm-hmm. And a treasury check, you know. And some people still get a hard check like that and then make a physical deposit. But most people do direct deposit.

Now, you cannot garner sheets.'s illegal to garner, you can garner wages, but you can't garner your Social Security check. Right. But you can take the money out of someone's account if it gets deposited. And guess what? Most Social Security checks are now direct deposited. So it's not unusual for collectors to scarf Social Security money when it comes in. And the same thing's true with the stimulus money.

If they have a judgment lien against you and a lien on your bank accounts and the IRS sends this money into your account, you're getting no stimulus whatsoever, and the stimulation will occur at the collection agency. Wow. So you really have to be on your guard in these situations. And the sad thing is that a lot of people that would be affected by this are the very ones that no one tells this stuff to. That's right. That's exactly right.

And, Dave, unfortunately, I read also in another article, if you were using a tax preparer, that a lot of times that stimulus check could be going toward them if they've set up a bank account for you because they removed their fee and give you your refund. And so it's really important, as you said, all the way around, everybody, is to really be plugged in on this and know exactly what's going on with your account and be aware. Oh, that's one of those rip-off, advance your refund things. Yes, yes. So like an H&R Block advances your your refund but then they set up a checking account

in your name for the refund to come back directly to them to pay the loan they made you that's right and if they if the irs has that on file they're going to get your stimulus that's where your stimulus money's going to the difference is i don't think hr block will keep it no no i don't have to go find it over there you'll have to find because you'll be wondering what why you didn't get your check and there it is over there because you did a stupid refund advance loan that was stupid that i mentioned that was stupid yeah i think i mentioned i think you said it do it one more time it was stupid there we go all right just make sure hit the rim shot baby and uh man oh man and uh so yeah i did not i didn't read that one yeah but I can visualize how that happens.

So any way the IRS has a bank account number on you and you have done business with them for any reason through that bank account, that may be where your stimulus check is. And if a collector had a lien against it or if you still owed H&R Block a little money, they would, of course, deduct that from that. Now, they're not taking this out like a tax refund they'll scarf that if you're behind on your student loans oh yes but they're not doing that with a stimulus check they are sending these out in spite of your student loan being in default as

i understand it and we did finally get a ruling that it is not taxable for sure, right? That is correct, Dave. And looking at this, they are calling this a tax credit. It will not be counted as income is what they're saying, what tax experts are saying right now. And so, again, we've got to wait and see. I do love that they have made everybody happy about this, that they're giving you some of your money, and they're borrowing money to do that, and everybody's just happy. How are they borrowing, Dave? We're all just happy.

How are they borrowing? Well, they're in debt. The government's in debt. It doesn't do anything but borrow money. It's got a deficit. It can't run up an extra $2 trillion in expense without borrowing. So they borrowed more money of your money to give you your money and now you feel like they gave you a gift this is the greatest emotional scam in history this thing called government i mean they

just absolutely wear your butt out and you just oh thank you thank you president trump thank you nancy pelosi for saving my poor little life because you gave me some of my money that you borrowed on my behalf i mean what's the difference in this well there is a difference because you don't you'll never pay it be your grandkids paying it but uh you run down run up a credit card it's about the same stinking thing except then you hand the credit card to your grandkids that's right well and do you remember okay you've been doing this 25 30 years what was the debt the the smallest debt you can remember us being in as a country oh i don't you know i'd have to go back and look in 1992 when i turned on the microphone

what the deficit was i don't know okay because we're at 22 trillion right now i i would guess it was one or two trillion that would be my guess i mean that's scary i'd have to look we ought to look it up at the break and figure it out but that's just scary that we just added two trillion that quickly and they're gonna do it again you think yeah they're gonna do it again yeah they're they're not through um it's just it's just printing money i mean how could it be of any harm wow wow uh and let me just tell you i'm glad you guys are getting some relief i'm not making fun of you if you're hurting we're here to help hurting people it's what we do we're not throwing you under the bus but darling if twelve hundred

dollars changes your life your financial life you were already struggling i mean you know you already had trouble if twelve hundred dollars you had an income problem, you had a debt problem, you had an outgo problem. If $1,200 makes you feel all warm and fuzzy, then you are already struggling. Long before you ever heard the words coronavirus. So we're going to help you. It's what we do here. Whether you're just brand new and you finally had your I've had it moment, or whether you're halfway through and you've got questions about what to do in this step,

Chris and I are here to help. The phone number is 888-825-5225. For most of us, health care costs seem to increase every year, and saving money on health insurance feels more and more out of reach. For example, take the Olcheski family from LaGrange, Texas. Jeff and Cherise had just celebrated the birth of a new baby boy. Shortly after, they had a health scare involving one of their kids that was completely unexpected. With today's health care climate, this could have bankrupted them.

But thanks to Christian health care ministries, the Olcheskis were spared from a ton of medical bills. As members of Christian health care ministries, they're part of a group of believers who financially and spiritually support each other. CHM is the original health cost sharing ministry and is a Better Business Bureau accredited charity. It's biblical, affordable, and it's shared nearly $97,000 to help the Olcheskis. To be a part of Christian Healthcare Ministries, visit chministries.org.

That's chministries.org. CHM is a proud sponsor of Dave Ramsey Live Events. chministries.org. Thanks for joining us, America. This is the Dave Ramsey Show. Open phones at 888-825-5225. Chris Hogan joins me this hour as we talk about your life and your money. Tony is in Indiana. Hi, Tony.

Welcome to the Dave Ramsey Show. Hello, Mr. Ramsey. Hello, Mr. Hogan. How are you gentlemen doing this afternoon? Great. How can we help? Well, sir, I spoke to you years ago when I lived in Nashville. I used to hear you all the time during the afternoon, and it's good to talk to you again. I'm 40 years old. I'm about to get married for the first time. I'm sure you get this call a dime a dozen, but I got a credit score of 740 right now. I make $76,000 a year. I have I got about $7,000 in my checking account. My fiancee that I'm about to marry, she makes $65,000, but she has about $45,000 in student debt.

Okay? So that's just a summation of what this couple, what i'm going to in a marriage yeah when are you getting married i'm getting married in june okay congratulations very nice but thank you sir okay so what you guys need is a new plan for your new marriage right right and the question i have is that you speak about having an emergency plan and within you're in there and I have $7,500, $7,500 in my savings right now. My question is before I go into this marriage, should I go ahead and put that 7,500 on my student debt? Also put some of that money I have in my checking account.

I got about 7,000 in my checking account. Should I put that in my student debt just to clear off some of my student debt before I... Because I've been rapidly... I've been doing a snowball. The snowball... I paid on my car note doing the snowball thing, and I don't have my car

debt, so it's just my student loans personally, but she has $45,000 in debt. So, I'm just wondering if I should use that emergency fund. Here's the thing. When you do this, now or June, doesn't matter. What matters is that you do it. Okay. And what we teach is not just the debt snowball.

What we teach is a process for walking through this called the baby steps. And the two of you, as of June June are working together with your whole household income. You are keeping $1,000 as your baby step one starter emergency fund. Obviously, we've learned in corona, and we already knew $1,000 is not enough. It's not intended to be enough. It's intended to catch little stuff and keep you from going into debt. It's not intended to cover 30 days of your income going away, which has never happened in my lifetime, and I'm 60 until now.

Right. And so, you know, but so $1,000 is fine in June. Everything else goes on your rolls, because after june it's we student loans and you work them off with the debt snowball smallest to largest and so you're going to have around 14 000 cash if you have that much left after the wedding and the honeymoon to throw at the debt at that point i wouldn't do it until then but here's what you do the two of you do need to be committed because you've been kind of playing with this stuff. You did part of what we teach.

Okay. You haven't done the other part. So what we're going to do is we're going to give you a wedding gift. It's called a one-year membership to Financial Peace University. And I want the two of you, even during quarantine here, if you need to, to go ahead and use that time to go through this class together. Start doing your budget together. Don't mix your incomes and your debts until you're married, but then let's work you through it. And when Chris and I finish talking to you, we'll put you on hold with Kelly.

Chris? Tony, did you grow up in a family that had money? Well, I grew up in, I would say, in the high middle class. My father's in oil estate and uh he did pretty well we weren't wealthy but i would say he was making maybe one to two hundred grand a year so i mean wasn't wealthy but we would we did okay i mean we had i come from a big family i have seven brothers and sisters. So it was a pretty long time. And I'm asking you that question because I know at some point coming from higher middle class or middle middle class or you said someday I'm gonna.

And you can fill in the blank on what that was. You've made that statement, my friend. And I'm going to tell you something. That someday is not on the calendar. It is not a month of the year, and it's not a day. What you have to do is make a decision this day. And what that means is it's not nibbling around it, but it's where you go whole, all in for this. And using the gift that Dave has given you and your fiancé to plug into these lessons right now while you have downtime

and start to talk over this stuff, Watch the lessons together, have a conversation, get this in your DNA and watch what happens for your future. Stephanie is in Indiana. Hi, Stephanie. Welcome to the Dave Ramsey show. Hi guys. I'm excited to get your advice on this.

So I'm excited to talk to you. Okay, great. How can we help? Well, I have a question about baby step five. We have six kids and we just have a small ESA for the oldest. Our monthly budget doesn't really allow for monthly withdrawals,

so we're now getting to be a Baby Step 5. So we are talking about one-time payments, like the stimulus, for example, or a five-paycheck month, or maybe other random bonuses, putting those towards Baby Step 5. Since some of my kids may not go to college, should I do an account for each of them, or what would be my best course of action, do you think, having so many kids? What's your oldest? Ten and a half.

Okay, great, great. your oldest 10 and a half okay great great and he has um well currently it's about 3 000 it was almost 4 000 before this all hit so it will hopefully go back to esa's or 529s either one are transferable to siblings and you're in control of that and so if kid number three decides not to go to school then the money you save for kid number three can be transferred to one of the other kids' names to take care of this. Or you could transfer it up and back. I mean, if you've got one in school and you need to take some from one of the little ones and move it up, then you move it back later. You know, that kind of a thing. If one of them gets scholarships, you can remove that amount, the equal value of the scholarship, without any taxes,

or you can transfer it to another sibling. And so piling up money in your 529s or your ESAs doesn't have any downside. And so, you know, you can move the money around so you're not going to lose it, and it's going to grow tax-free. So I would sit down with your SmartVestor Pro and get them open. I think it's valuable from a family rhythm to have each of them have an account, even if you're putting, you know, $25, $50 a month in it or something, even if you're not loading it up, right? And then you hit them when you can with some of these lump sums later, because it keeps the

conversation going in the family. You're going to to school we've got money saved for your school part of it is you're not going to be able to afford to go to an expensive school so you're going to go to an in-state school and uh you just start the brainwashing now um and that's what we did i mean because we just talked about it it was I found out rich people talk about money in their houses. And so it's part of their rich kids are comfortable with the subject of money, at least the families that are functional. And so one of the things we said was we're not rich at that time, but our kids were little, and we're going to talk about money.

We're going to act like we're rich people and have a conversation. So I would get out the mutual fund statements and say this is your college fund this is your college fund this is your college fund and that kind of thing and so you know that that's you know that that's how i would get at it chris dave it's called conditioning not brainwashing oh okay that's what it's called well you asked my kids what happened but stephanie seriously I love the thought process. Keep it in the budget and make sure these kids know they've got to do their part, too, with their grades and their studies. That's how it works.

This is The Dave Ramsey Show. Dental insurance is great if somebody else is paying for it. But if you're footing the bill, OneDental.com is a much better way for my listeners. OneDental.com is a discount membership that gets you unlimited lower rates at the dentist, not just for cleanings, but even dentures, implants, root canals, braces, and more. Whether you're getting a plan for yourself, your family, or your business, OneDental.com is the way to go. Visit OneDental.com. Well, of course, there's a lot of uncertainty out there right now, and many of you are wondering what things are going to look like on the other side of this. Many of you said, you know, next year I'm going to get this stuff straightened

out. Well, next year's here. Things don't change unless you change them. I want you to join Chris Hogan and me for the very first time we've ever done this. A one of our financial peace live events. This was done in Charleston, South Carolina last fall. And we're going to play it free for you as a virtual live event. All of our live events have been postponed to later in the summer or up in the fall, so we're kind of getting antsy, and this is the best we can do. And it's really good, actually. The camera work on it and the digital shoot was incredible. So this is a very nice gift to you guys.

The first time we've ever done this completely free for a Financial Peace live event. It is going to be this Thursday, April the 23rd at 7 p.m. Central Time. A virtual live event, 8 p.m. Eastern. There is hope. You're just going to go to DaveRamsey.com for this free virtual event. Again, it is Thursday evening. Pop some popcorn. Pop open a can of Coca-Cola or whatever it is you open at your place.

Sit back there and watch Mr. Hogan teach you, and I'll be teaching you. It runs a couple of hours. It's a virtual live event, 7 p.m. on this Thursday, April the 23rd. If you want a reminder, just text the word virtual to 33789. 233789. So, Hogan, I never thought we'd be giving these away. Oh, I know. Listen, and that event was rocking.

That was a great one. It really was. 4,000 people there. It really and truly was. And, Dave, wow, this is new territory. Yeah. We've never done stuff like this. But it's unusual territory that we're in.

That's right. New territory that we're in. That's right. And I'm going to tell you, you know, Dave is being kind. I get a chance to present a little bit in there. He's the rock star. But just to sit down and to watch the event, I'm going to tell you, the way that it's designed and structured, this is an opportunity.

You've got Financial Peace University, a free trial. You've got an opportunity to watch one of our premier live events that we travel and do all great opportunity to, in the midst of all this coronavirus and all the unknown, to really start to put your feet in a solid financial foundation and to begin to take steps towards your legacy. So tune in Thursday, April 23rd, 8 p.m. Eastern, 7 p.m. Central. Text the word virtual to 33789. That's 33789.ael is with us in pennsylvania hey michael welcome to the dave ramsey show hey dave thanks for having me sure what's up so i'm living in pennsylvania and so we have pretty good value on our state taxes, but they get you with the property taxes. And so basically like a $250,000 home will cost in the area where I'm currently at is anywhere between like five to $7,000 a year. And what this equals out to is that I could get a mortgage where I'm spending about $1,800 a month with $1,200 of that going to the equity and a third of it and an extra $600,

a third of the mortgage going just to tax, not to equity. Is it still worth it to buy a house if that much money isn't even being put towards your home? Well, is the $250,000 house going up 10% a year or $25,000 while the tax bill was $5,000? If it is, then the answer is yes. Is the $250,000 house in your neighborhood going up $500 a year while the tax bill is $5,000? Then the answer would be no. So usually real estate appreciation will far outpace the taxation or there will be enough politicians fired to back the taxation down because they destroy the economy with taxation eventually.

But I suspect that what area of Pennsylvania are you in? York. Oh, I'm sure you're getting a 5% to a 10% appreciation on those homes, aren't you? I haven't looked at home appreciation rates yet, but I do know homes are getting more expensive out here. Yeah, that's home appreciation right there. Yeah, I mean, it does sound like real estate's good buy. I don't argue that the taxes are too high.

I've never had a tax that I thought was too low. And I've got a bunch of taxes. Yeah, welcome to the club, Michael. But here's what to do. Go to DaveRamsey.com. Click on the real estate ELPs. And what you want to do is get connected with someone. Talk to them about what's happening in York.

We'll get you connected to someone in your area. Again, for real estate specifically, you can go to DaveRamsey.com slash agents. And that'll get you to a real estate ELP. These are people that Dave and I have vetted. They're going to teach you and guide you the right way. Tyler's in Kentucky. Hey, Tyler, welcome to the Dave Ramsey Show. Hi, gentlemen.

How are you doing today? Great, man. How can we help? Well, I got a question about retirement and investing for my child's college. Okay. When I was going through high school and college, my parents set up a deal saying, as long as you keep your grades up in college, we will pay for it. What they'd done was I took student loans out in my name.

Any class that I failed or dropped I had to pay for any class that I passed no issues they would cover the cost of but what that meant was they had to pay for it either while I was in school or when I got done what I want to do is go ahead and start saving for it now. And then make that same deal with my children. Yeah, but with no loans. Yeah, with no loans. Yeah, with no loans.

I just want to tell them I'll pay for it if y'all pass. But if you fail or drop or you don't go to college, I'm not paying for it, but not telling them the money that I've got set aside can go towards, say, a wedding or a down payment for their house. That way it gives them an incentive to say, well, this is what I want to do. I don't know how I'll afford it unless dad pays for it, you know? There we go. I like that. If they don't want to go, then that's fine, but they don't know I've got that money set aside already, they just assume I'm going to take it out as a loan when they go to college. I wouldn't have that assumption because I don't want to teach them that borrowing is an option.

I want to teach them how impressive you are that you've saved and invested and you've taught them about investing with their own college money. And you say, this is your college fund. Look at your mutual fund. This is your mutual fund. This is your mutual fund. This is for you to go to college. And you start talking about that when they're seven, and then when they're 17, they go, you know, I've got that mutual fund for going to college.

I guess I'm going to college, and that's a good thing. Right. I said it was brainwashing. Chris said it's conditioning. What would I invest in? Because I know 529 doesn't have to go strictly to school. No, it doesn't. Oh, so I could use that for...

Oh, 529 has to go to college or higher education, or it can be transferred to another sibling. But, you know, that's what I would put it in. I would let it grow tax-free. Chris? I was just assuming I could put it in some other kind of Roth. That way, if neither one of my children decided to go to school, I could still access that money to put it towards something else for them. No, no, not through the Roth.

So, I mean, you would go that route with a 529 as far as saving for school. Looking at that, you could look at a growth stock mutual fund. Listen to what I want you to do. Get connected with a smart investor pro. Again, go to DaveRamsey.com. You can sit down, walk through all the options that you have for you as well as your kids. Yeah, there's all kinds of ways you can get at this and skin this cat. But the bottom line is you need to communicate to the kids that saving is the way you do things, not borrowing.

No loans. And you're not getting money from this account unless you're behaving. That's right. And you can dictate their behavior. I did the exact same thing with mine, and it worked. They all went through in four years. It was amazing. This is The Dave Ramsey Show. Guys, I've been saying this over and over.

This is the time to capitalize on a down market. Because you know what else is down? Interest rates. If you have student loans and you still haven't talked to Splash Financial, do it now. The Fed just slashed interest rates, so Splash is getting their customer really low rates. Combine that with not having to pay closing costs. This is the time to get your student loans refinanced. Everyone is asking about the interest rate waiver for federal student loans. First off, it applies only to government loans, not private loans. Also, the waiver is only temporary.

So what you need to do next is connect with Splash Financial and review all your student loans. Guys, stop dabbling here and get it done. There is no money out of pocket, and you could save a lot of money. Go online to splashfinancial.com slash Ramsey and get started to take advantage of these low rates. Our scripture of the day, Matthew 5, 16, In the same way, let your light shine before others,

so they may see your good works and give glory to your Father who is in heaven. Rosalind Carter said, A leader takes people where they want to go. A great leader takes people where they don't necessarily want to go, but ought to be. Oh, she was a great first lady. Yeah. All right.

Open phones at 888-825-5225. Matthew is with us in Florida. Hi, Matthew. Welcome to the Dave Ramsey Show. Thanks for having me. Sure. What's up? I got a text message today from a guy

who I consider pretty smart in the finance world. And I'm not going to read the swear words, but I'll read the rest. It just basically said, get the bleep out of the stock market. It's on the edge. All bets are off. Oil markets collapsed today. Oil is now negative. Never happened in world history. It's breaking down. What do you think of that? I think he doesn't know what he's talking about. Okay. Let me tell you why. Let me tell you why.

He is correct in that oil is in negative territory, and the stock market's dropped 500 points today because of that. But the Dow Jones Industrial Average is made up of partially oil companies, and so their profits are gone to put with this. So here's the situation. Guess what oil price is based on? Supply-demand curve. When there is an oversupply and an under-demand, price goes down. Can you imagine a more extreme oversupply than Americans,

the primary consumers of oil, not driving for an entire month? An artificial anomaly created by not a depression but a suppression. The coronavirus shutdown has suppressed the economy and portions of it, and this is much like the restaurant industry or the hotel industry. The oil business is taking it on the chin because their commodity, which is a shortage of it, drives the price up, and a glut of it drives the price down. Oh, on top of that, Russia and Iran a month ago got in a big battle over the same issue,

and they flooded the market with oil. So there's a double oversupply. This is not due to the stock market or the economy having inherent earthquake-level cracks in it. Run for the mountains and load your AR and build a still. Come on. I mean, do you really think Home Depot and Microsoft and just name off names, Coca-Cola, McDonald's, Dell, Apple, do you really think they're all going to be broke because of this? No.

Okay. That's what his premise is in the text. Run for the hills, right? Yep right yep yep and here's the thing it just you know the the in order for his premise to be correct you have to predict the end of the u.s economy and completely as we know it not a bump in the road not a dip not even a steep decline you have to predict the end of it because oils bottoming out is an indication that the entire idea is flawed and is going to collapse. Wrong. Oil is not diving because of that.

Oil is diving because of a simple oversupply. Make sense? That's what I needed to hear. Yes, thank you. Calm calm down don't jump off the roller coaster this commodity stuff will drive you crazy though you remember the old movie everybody out while you're netflixing i know what you're gonna say what's the movie trading places trading places eddie murphy and dan akroyd absolutely and jamie lee curtis yep everybody was in that movie sure were and those guys sliding that dollar bill the orange juice

commodity that was the orange juice commodity, which doesn't exist. It was too funny, though. There's no orange juice commodity. But there is grains. I mean, you have wheat as a commodity. I actually knew a guy in the tire business one time, and somehow he was buying futures. I don't know if he was buying them in rubber or if he was buying them in tires. Really?

He was actually buying tire futures to try to offset his costs, to hedge on his costs. But, yeah, when you're playing in a commodity like that, it's always a supply and demand environment. And any time there's an oversupply, you're going to see the prices drop. No, you're absolutely right. And so the premise is on the trading places that the orange juice or the orange crop came in super big which means they're going to have an oversupply and prices are going to die right and instead the real or vice versa instead the real story was it was real short and prices were going to go straight up the crop was not not abundant and so if you have a shortage on wheat next year because there's a bad crop of wheat,

then you're going to see wheat prices go up and vice versa if there's a bumper crop. And so anytime you've got that, and that's a simple, again, this is stuff we learned in the seventh grade. But now, are there things that could indicate that the entire experiment called capitalism and the United States of America is unraveling and going to end. Yeah, you could see those kinds of things, but this is not one of them. Right. This has a reasonable, logical explanation. Right. Absolutely. And Dave, you know, we've talked about in history, we've seen things we haven't seen before. The Great Depression. Right. Then you move up and then we had Y2K. We'd never seen anything like that before. Then we had the SARS epidemic in 02 and 03 and then the Great Re up and then we had y2k we'd never seen anything like that before then

we have the sars epidemic in 02 and 03 and then the great recession so we've seen things we've never seen before this is just something that is new but as you said it's hard for me to fathom the value that the market had in february has suddenly now gone away. It doesn't exist anymore. That's not true. A stock is a little tiny piece of ownership in a company. Now, if you own a little piece of, let's just pick out a company name, Procter & Gamble. If you own a little piece of Procter & Gamble, Procter & Gamble, that value you have as an owner of a company. Let's say you open a small business, open a dry cleaners, or you open a hardware store. What value do you have?

You have the value of the assets that the company owns, minus the liabilities, the net worth of the company on the balance sheet. And you have the income that the company produces. So if those companies, all of them, lose all of the value of the assets that they own, and they all lose all of their income, well, we're done. Right. But Procter & Gamble made up on toilet paper and on hand sanitizer what Exxon lost in oil. Yes. And so this is how it works, baby.

And, you know, Apple is selling some stuff right now because everybody's binge-watching everything all over the place and they're all running out and get they're all upgrading their gadgets yep everywhere stuff is moving in this market it's just not the stuff that usually moves and a lot of stuff that usually moves is not moving at all and it's scaring the crap out of us and it should because i don't want the restaurant business to go completely out of business and i don't want the hotel business to go completely out of business and i don't want the cruise lines to go completely out of business and i don't want the hotel business to go completely out of business and i don't want the cruise lines to go completely out of business and i don't want the airlines to go completely out of business buddy mine flew from florida this last weekend

four people on the airplane you cannot sustain that no you cannot sustain that so i don't want all of that to happen but uh but you got to know procter and gamble's having a good year yes they are. I mean, Charmin, be popular. Talk about a commodity. Talk about a commodity that there's a shortage on. Yeah. You know?

No, that's real. That's what's going on here. And so I wish I've got a building I'm building next door that we have not slowed construction on, and it's sucking all my personal cash flow. So I wish I had an extra couple million to throw at the stock market right now because I really think it's on sale. I don't time the market. I don't believe in that. But I'm about as tempted right now as I've ever been to time the market,

especially like today. Right. Today. Because you don't think they're going to control the spigot? No. And, you know, next week more people are back to work, the next week more people are back to work, and the next week more people than that are back to work,

and suddenly this glut gets sucked down the drain. That's exactly right. And you're going to see prices go. Oil prices starting to creep up. And if they don't lower the gas prices to offset the lower oil prices, that's more profit they're going to make. And people are going to be so happy to get out and drive. Yeah, and if they don't drop gas prices, we won't blink.

We'll consume it. Right. And they're going to make more profit. Now, I'm not saying that out of gouge, people, but that's a possibility. You may not see all these low oil prices reflected at the pump. That's true. No, that's a very good point. Because it's not going to stay down.

It's a blip. That's right. That's's not going to stay down. It's a blip. That's right. That's what's going to happen. Interesting. Very interesting discussion. Chris Hogan, thanks for hanging out. Thank you for having me, Dave. That's a good question, by the way, Matthew.

Thank you for calling in with that. All right. That puts us out of the Dave Ramsey Show in the books. Again, our thanks to James Childs, our producer, Kelly Daniel, back in the associate producer's seat occasionally right now during the whole shutdown thing. We'll be back with you before you know it. In the meantime, remember, there's ultimately only one way to financial peace,

and that's to walk daily with the Prince of Peace, Christ Jesus. In the middle of these uncertain times, Ramsey Solutions wants to give you some hope. For the very first time ever, we're giving you Financial Peace University free for 14 days. Go to DaveRamsey.com slash hope so you can watch from home. You may feel like there's not a lot you can control these days, but I'm here to tell you, you can control your budget and you can control what you feed your family. My longtime friends at eMeals are here to help. They have simplified meal plans and created new recipe collections such as easy pantry meals

and freezer meals utilizing basic ingredients. It has never been easier to shop smarter and stay on a budget. Try it free for two full weeks at eMeals.com.