The Ramsey Show - App - Credit Card Companies Don't Give - They Just Take! (Hour 1)

Episode Date: October 9, 2020

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🎵 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 hosting along with me this hour is Dr. John Deloney, and I have to tell you, we are wired up and ready to go and ready to take your calls. Now, John and I are both needy, so we need you to pick up the phone line and give us a call. The number to call is 1-888-825-5225. Again, that's 888-825-5225.

We're ready to take your questions. You might have questions about money, or maybe you want to go down the path of relationships and feelings and all these things Deloney can handle. Because he's not scared. You're getting better, Chris. You're getting better. Well, I'm finding more feelings hanging out with you.

You've got more than four. I am expanding, John. I'm pushing seven now. That's excellent. And I'm proud of it. And I appreciate you. You should be. I am. I am.

But for real, if you're out there and you've got a question, maybe it's a relationship situation with siblings or maybe with parents. And John, I heard you talking earlier. You were like, the worst thing we could do with feelings and emotions is to try to repress them. We need to express them. Yeah, somebody was writing into the office asking if the best thing to do is to, and I quote, just bury their feelings and move on with their day. And I was like, man, that's just not a good idea. That is a recipe for a problem later in the day. It's not a good idea, man. Yeah.

So guess what? Pick up the phone. John's not scared. I am slightly. That's why I'm going to let him take those. But if you've got a money question, I can talk about that. We can dig into it. And guess what?

We're going to chase down progress. Because where we are right now doesn't have to be where we end up unless we stop. And so the good thing is if we have breath in our lungs, we've got an opportunity to push forward and to get better. So we're going to get to the phone lines already right off the bat. I've got Fernando and Antonio. Fernando, how can we help you today? Hey, how's it going, Chris and Dr. D? We're good, man.

We're ready to talk to you. What's on your mind? So I'm in a tough predicament right now um me and my wife and two children we are on baby step two and um we're about seventy thousand dollars in debt we have paid off uh two thousand these past few months and um we're very new to the baby steps and self-planning. I just want to get y'all's help on convincing my sister-in-law, my wife's sister, to sell a home that she owns with my wife, 50-50, to speed up our debt-free journey. Oh.

Okay, so you've got $70,000 left. What kind of debt do you have left? $60,000 is school debt, and then the rest is pretty much consumer. Okay. And so you want us to convince the sister-in-law. Or help me. Help you to, okay. First of all, Fernando, how's your relationship with your sister-in-law?

Oh, it's great um it's very very great great like you vacation together or great like you see each other two or three times a year no we vacation together we vacation oh okay and so you know like you knew before you called fernando this is just guy to guy here you call you knew you can never convince your sister-in-law of anything you couldn't convince your sister-in-law of anything. You couldn't convince your sister-in-law that today's Friday or that there is a sun that may or may not come up tomorrow. That's not how sister-in-laws and brother-in-laws work.

So why do you want your wife to sell this part of her house and your sister-in-law doesn't want to sell? Is that what's going on? Yes, sir. Me and my wife are on the same page on selling the house that way you could cut down our debt-free journey sure and have and um we're in no way to rent out this property because it's paid off and we're living in there currently and um we're just paying taxes on it every year sure but um cutting it down and renting for i guess a year or two

as we get out of debt will greatly like... Wait a minute. How much is this property worth? To be honest, it's a fixer-upper, so it's around... It's under $100,000 for sure, so... But you all are currently living in it. Are you paying any rent or anything?

No, sir. No, sir. So we just... They just barely inherited the property from their mom and dad. They had a divorce, so they just decided to hand it off to the kids. Oh, so wait, I messed this up. So you and your wife live in this property, and you want your sister-in-law to sell you her half. Is that what you're saying?

No. We want to get out of the house, and we don't want anything to do with the house. We just want our half of the money. Oh, I see what you're saying. Okay. All right. All right. Yeah.

We want to keep it as a rental property. Yeah, man. Hey, listen. You're living rent-free right now, and I know it feels like you've started counting that $50,000 of your half of this sale. Man, don't divide up your family over this. You're living rent-free. Take that for the gift that it is. Live it and pay it off, and then get out of debt.

Yeah, Fernando, what's your household income? Currently, I'm in college right now. I'm a student, and i graduate this december and my current salary right now is 32 000 okay is your wife working outside of the home no sir but my salary is gonna double this coming january because i graduated in december yeah i i'm gonna tell you this buddy i i think the like john's saying you can't control other people and so can you all have conversations? Could you lay this out and talk it through and find out and look at the pros and the cons?

But here's the flip side. Like John said, you're living in this thing rent-free. If you sell this, you're going to have to go either, A, start paying rent, or to get yourself in a position to get ready to buy once you get out of debt and build up an emergency fund. So this needs to be one of these things that you and your wife are owning. You're owning your part. Is there a path down the road that might lead to this being sold? Potentially.

But the immediate thing you have is a $60,000 issue in front of you with student loan debt and some other things. That's something you want to dig out with your own income. Now, again, you can have conversations and you can begin to lay out the pros and the cons, but I'm going to tell you something. The only thing that you can control, ultimately, is you. Your attitude, your outlook, and your actions. And so you and your wife, in my opinion,

that's where they need to focus. That's right. And see this, it feels like it's got a brick around their neck because they're counting that cash. Yes. It's not real money. You've never seen it. You've never held it.

It's not tangible. Right. You think it's a little bit less than $100,000, so you're going to sell that house for $80,000. You're going to take the realtor's fees off. You're going to get all this stuff done, and you're going to hold $30,000 in cash. That's going to help, but then you're going to have to turn around and go rent a place in San Antonio, Texas for another $1,200 or $1,500 a month. Don't break up a relationship with your sister-in-law. It sounds like you all are together. You're close. around and go rent a place in san antonio texas for another 12 or 1500 bucks a month don't don't

break up a relationship with your sister-in-law sounds like y'all are together you're close take this for the blessing it is it's free rent start getting uh make some more money brother here's the other thing john i feel like she said this property came through a divorce there's some emotions attached a lot that's right seriously so i'm saying don't dig into all that um take the blessing it is it It's free rent. It gives you a good platform to launch off to make some more money and pay your debt off. But start building your budget on, hey, if this thing were to get sold, and like John said, you end up with $35,000 to $40,000, okay, now what? What are you going to do?

Because it's not going to wipe out all the debt. And your budget needs to be built being prepared to start to pay for this. So have the conversation, and maybe it's a series of conversations. As I tell people, a one-time talk is an introduction. When you begin to have dialogue back and forth, now you're starting to have a conversation. Hang in there, buddy. You all stay focused. You're not finished. You can clean this thing up.

You can do it, and we're here to help. This is The Dave Ramsey Show. I get asked all the time about what people need to do to improve their family's money situation. Two of the most overlooked things are term life insurance and disability insurance. We'll be right back. for most families. Stay away from cash value or return of premium plans. They're just a ripoff. Disability insurance is just as critical. How are you going to pay your bills if you're unable to work? Disability is the leading cause of bankruptcies and foreclosures. That's why I send you to Zander Insurance. They've been helping my listeners find the right plans at the lowest cost for almost

20 years. Call 800-356-1780 or visit zander.com and compare online that's 800-356-1780 or zander.com Welcome back. This is the Dave Ramsey Show. And I tell you, I absolutely love when we got real folks out in the lobby. They're out there drinking the coffee and the cookies I baked for them early this morning. That is not true. Miss Melissa Wilson is handling things over the Baker Street Cafe.

And if you are in the area, come see us. We'd love to be able to meet you. You can check out the bookstore. We've got all of our bestselling books over there along with some other materials. And you can visit the facility and be able to check it out. We've got a great looking crowd out there and definitely always appreciate people taking the time to come by to get connected with us. Now, I want to let you know something. You know, I don't know a better thing you could do than to give. And giving can look like your time. It can look like your money.

It can look like your talent. But I really want you to understand, we got a lot of people that are dealing with high pressure financial situations right now. I read a recent article, John, that said 61% of people are going to end up spending all of their emergency fund by the end of the year. Oh, man. And that's a gloom statistic because you and I both know the holidays are coming. Christmas is in December, by the way.

It's in December. Thank you for that. I'm going to put that on my- People get surprised by that. I don't know why, but we've got to be smart. And as we're moving forward to the end of this year, everyone wants to blink and wants 2020 just to go away. You can't blink away three months, people. We can't.

We've got to engage in this and finish strong. But I do want to tell you this. A lot of you probably remember what it felt like before you got on the plan. The money fights, the sleepless nights, the hiding, the internal frustration and irritation. And thankfully, there are people out there that can help now. If you've ever taken Financial Peace University or you've been impacted by what we teach, you've got an opportunity to be able to lead a class to help someone else find their path. And Financial Peace Coordinators are everyday normal folks who have helped millions of people learn how to budget, dump debt, build wealth, and give generously.

And a lot of you think, Chris, I don't know if I can do that. Yes, you can. I promise. Dave, Rachel, and I, we will do the teaching. But what we need is for you to get engaged and connected with people. That's why we're offering a virtual financial peace university class. It's completely online. Don't even have to leave the virtual Financial Peace University class. It's completely online. Don't even have to leave the comfort of your own home. And with the free coordinator guide, you're going to have everything you need to be able to lead with confidence. So you don't have to be an expert, but you can make a difference.

You can help change a family legacy and become a Financial Peace University coordinator and help your friends and family win with their money. Get started by texting LEADFPU. That's all one word, LEADFPU to 33789. That's LEADFPU to 33789. And I think it's an awesome time, this time of year, right here, right now, to get more intentional and focus on money than ever before. And Chris, you mentioned it, and I want to make sure we point this out. Yes, does this help Ramsey Solutions?

Yes, of course. This is a business, right? But if you're sitting at home, and this is month, right? It was going to be a two-week stay at home to flatten the curve. Remember that? Oh, yes.

Right? And now we're in month nine, right? If you were sitting at home, and you're exhausted, and you're anxious, and you're spun out, one of the quickest, effective most simple ways to begin to turn your body physiology around your heart and mind around your psychology around is to serve and you can go outside and pick up trash you can

make cookies and bread for your neighbor or from the comfort of your own home you can start a journey with a group of people over nine months. Is it going to help out this company? Of course. Is it going to help you out? Yes. Being a part of being changed in somebody else's life is a big deal, man. Yeah, and it's amazing what happens.

You're starting a conversation. Like I said, the teaching is going to be done for you, but you've got a great opportunity to just reach out and connect. And I tell you, John, in this time, in the last several months, I have found the value of connection to be more important than ever. Oh, man. Again, battling against that mindset of isolation. Yep.

And, you know, that Western culture mentality of just pull up your bootstraps by yourself and do it alone, that's false. It's a lie, brother. Yeah, that's a false narrative. It is. It really is. And so, again, let's reach out. Let's help others by shining the light.

And I know we can do this. I really do. Alright, we're going to get back to the phones. John gets a little needy. And so if you don't call with questions on relationships or feelings, then I have to deal with him at the break. So please, people, please pick up the phone call. 888-825-5225.

Again, that's 888-825-5225. Again, that's 888-825-5225. I'm just kidding, but I do like for him to get riled up over here. So Alan is calling us from Fairfax, Virginia. Alan, how can Dr. Deloney and I help you? Hey, guys. Thanks for taking my call. Wanted to give you a call because I stopped paying down my credit card debt and auto debt back in March when things got real bad and my company ended up doing some layoffs. I was fortunate enough to keep my

job. But we took the money that we would have been using to pay down that debt and we started in it. So now we have about $17,000 saved. We have $11,000 in interest-free credit card debt, and that period is about to come to an end, and then the interest is going to kick in. And then we have about $12,000 in a low-interest 2% vehicle loan. So my question is, I feel like I'm getting kind of antsy sitting on this money when I've got credit card debt to worry about. So do I go ahead and just spend, you know, take that savings, pay down my debt, and be done with it? Well, Alan, has your income, is everything stabilized now? I feel like it has.

You know, the spring and summer came and went. But, I mean, your income hasn't changed. No, no, sir. Oh, no, it's time. So what happened was is you went into conserve mode around the time where we had all the unknowns and we didn't know what was happening, and we told people, hey, if your hours have been cut back or you've been laid off, you're going into conserve mode. That means I'm sitting on money and I ain't doing anything.

But once things stabilize, yeah, absolutely. It's time to unpause. You need to start attacking this $11,000 in credit card debt. That's done today, right? Yeah, you can do that. So you're going to go from $17,000 in the savings down to $1,000. Alright, all the way down. All the way down.

Absolutely. Okay. Yeah, all the way down. Again, your hours are stable. Your income is stable. We're following the baby steps. Baby step one is $1,000. Any other extra money that comes in, we're throwing it toward debt. So you've done it the right way. You didn't fritter it away.

You didn't go find a boat or go do something silly with it. So, no, it's time to un unpause and let's start writing checks today. And by 5 o'clock today, you're going to go from $23,000 remaining in debt to $5,000. Right? Is that right? Or maybe $6,000. It's $6,000. Leave the math to me. Don't try to get over in my lane.

I don't go in the feelings lane. You don't go in the money lane. Okay? We have lines of demarcation. Well played. No, but seriously, though. He's getting those six grand after today. And guess what?

He is going to feel weird because he's used to this savings account. He's going to feel exposed. He is. Yep. But let's remember the process. It's to attack debt. Yes. Yeah, we ain't hoarding money.

We're attacking debt. And then once that gets out of your life, you notice how he said he had a low-interest vehicle. Oh, no. It makes us feel better, doesn't it? No. They're little blankies. They're little comfort blankies. It's my low-interest thing.

It's low-interest. Or I've got a 0% interest on my credit card, Chris. And you and I both know those introductory offers. Aren't they so good? You're a little blankie. That's what I'm going to start calling them from here on out. Hey, you know why they do introductory offers? What?

Because the credit card companies are our friends. They like us, Chris. They want to help us. Oh, they help us by taking advantage of us. It's so ridiculous, man. It really is. You know what I discovered? This is going to be a Hoganism.

Go for it. They don't love me. Discover does not love you. Think about it. If your baby was to get sick, if somebody in your family needed something, they're not calling you to check on you. They're not calling to check up on you in the midst of this pandemic. What they've done is called you about payments if you didn't make that payment on time. They just take.

They take and they take and they take. And when you start to see that for what it is and you don't confuse confuse that, think that they're your friend, when in reality, it's a frenemy. It's something that's looking to take advantage of you and your financial future. And when you see that for what it is, you don't unsee it anymore. You really don't. So start paying down that stuff tonight, Alan, buddy, and know that you're working this plan, and the plan is not going to lead you astray.

It's going to lead you to a path to more clarity and more options for you and your family in the future, my friend. You can do this, and we're here to help. This is The Dave Ramsey Show. Thank you. Hello, everyone. We are back. This is the Dave Ramsey Show, and I'm on on and I love to be on with John Deloney. But I want to tell you something, he has a show, the Dr. John Deloney Show, new episodes coming out every Monday, Wednesday and Friday on YouTube and anywhere you listen to podcasts. But he's truly digging in and getting real on life, relationships, as well as mental health challenges. And I'm going to tell you, the last nine months have shined the light or added more stress and strain on us as a society than I think we've dealt with in a very long time.

And so how do you begin to get the tools? How do you begin to cut through the chaos of anxiety, depression, and disconnection? John's got an anxiety relief checklist at johndeloney.com, and you can find him on the show because I know a lot of times people are calling in with a lot, but they're also getting a lot of emails in, you all. And I want to tell you the email address is askjohn at ramsaysolutions.com. And so to be able to talk about it, and maybe you don't want to call in, but maybe you want to write in, but you can also call in and leave a voicemail for John's show.

And here's the number. I want you to write this down. 844-693-3291. Again, that's 844-693-3291. And, John, you know, I know right now, I know how stubborn us men can be. Say it ain't so, Chris. Okay, I'm just going to put that out there. I know how stubborn us men can be. Say it ain't so, Chris. Okay, I'm just going to put that out there. I know how stubborn we can be at times.

But listen, right now in this time and age where I'm going to tell you people are feeling stress and strain in places they've forgotten. Yes. Okay. What can a spouse do? What can a wife do for her husband? Knowing that he's stressed or having some anxiety to begin to have that conversation without prying so normally we have those conversations on the back end of a blow-up right oh yeah so uh husbands i feel anxious i'm somebody who's just defaults to anxiousness right

um and i i will feel it i'll be absorbed in my own little thing and my wife will come in trying to be real helpful, trying to help, trying to take care of me, trying to say, Hey, how can we connect here? And I don't speak that language. And then I say something or react in a way that's tense, that she feels distance or that pushes her away. And then it ends up into a whole thing. And that's when we try to have a conversation. That's a terrible time to have a conversation. What, what, what somebody who can do, who's married to somebody who loves somebody who's struggling with anxiety is can wait. Exhale until things are calm.

Until you're going for a walk. Until you're eating a meal together. Until you're sitting on the front porch. You're reading a book. And then to calmly ask, hey, what are two or three things I can do that bring you peace? What are two or three things I can do that when you aren't feeling well that help? And then here's the magic, Chris. You've got to listen.

Because most of us fixers, we like to go in with the two or three things that I want you to experience that's going to make you feel better. Right. And that's not how that works. Well, women are better listeners than us anyway. Sometimes. No, all the time. Sometimes. But look out there in the crowd.

Do you see these women looking at you? They're listening. That's right. I'm trying to save you. And I'm at you they're listening i'm trying to save you and i'm looking at these guys trying to help you okay we've got to go back out there at some point that is true there's some small tough women out there i they are better listeners all the time i fully agree with you chris 100 but here's the thing when you want to help somebody the best thing you can do is ask to be invited into that help and then to listen and respond to what they tell you don't go with your pre-ordained ideas about what they need let them talk to you wow okay so have that conversation be willing to ask be willing to listen right and then do the thing that the that they're telling you that's right that's good all

right people listen to me um it's life 101, man. And life is about community. And what we have to do, the best way to get through this is together. Yep. And so for you guys out there, if you are feeling anxiety, open up. Talk to your spouse. Talk about your feelings. Give me a call. Be open and real.

Or call John's show. Again, number to call, 844-693-3291. And, John, I know you've been getting a lot of calls in from husbands, wives, siblings, people wanting guidance. And I think that that's an awesome thing. So you can call or you can email John at AskJohn at RamseySolutions.com. Okay, all right, we're going to get back to the phones. We've got Stephen is on the line. How are you, my friend?

I am doing wonderful, John and Chris. Thank you for having me today. Yeah, buddy. What's on your mind? I have a little bit of an odd question I haven't heard come up. How do I approach having this dream meeting with my wife? We're coming up on finishing up our emergency fund in another month or so. We got a house.

We paid off $67,000 in debt. Good job. But we're coming up to a place where I need to have a new goal coming forward, and we tried to sit down a couple days ago and have this conversation, and it just stirred up a lot of emotion. And we didn't really get anywhere with it other than, you know, we wanted to have some trips and some, you know, a nicer car and some of this stuff. What did it stir up? Tell me what it stirred up.

So it was more of the conversation flow in that I felt like I wasn't getting any input from my wife on what our goals should be, and I was getting frustrated that I wasn't getting any goals to push for, and that frustration was leading into my terminology towards her, and it just snowballed poorly. There you go. All right, so here's what I want you to do. Yes. You may have heard me say this,

and I'm going to say it again until dave quits letting me be on the radio we often um think in pictures but we speak in words and i don't want to genderize this but guys often talk think frontal lobe meaning we say what's the goal how much money do we want in the account what how many vacations we want to take over the next four years and where do they want them to be and often our people that we love who are in our life, they may experience, they may have a picture, they may have an idea of what Thanksgiving table is going to look like, who's going to be there, what the smells are going to be, what house are we going to be living in. So instead of talking about goals, instead of talking about tactile strategies,

I want you and your wife to go somewhere, whether it's for dinner, whether it's a – my wife and I take an annual retreat now. We'd spend one day that we'd go, and sometimes we'll go to multiple coffee shops. This year it had to be outside because it was just a bonkers year. But we take a retreat together and just say, we're going to paint a picture for what we want the year to look like. And so instead of trying to knock it out, make a checklist for the next 10 years, I want you, before you have this meeting, to paint a picture in your head, or actually, if you're a gangster, do it in real life. Actually get a piece of paper out and draw a picture. Where are you living? What are you doing?

Are you laughing? Are you smiling? Are there grandkids around? Where are your kids? And then offer her to engage in that too. And then go out and talk about what each of you drew. Okay. And then you're talking about a whole different way of approaching goals. Because then you're going to reverse engineer those pictures together. My guess is, how long have you all been married?

16 years. My guess is your pictures are going to be a lot closer than you think they are. But right now you're going at it differently. You're going at it with information versus goals versus feelings versus go in there with a picture, a unified picture, and you're going to reverse engineer that sucker. And that's going to roll out your strategy for you. Well, then we need to save this much money. We need to make sure we go on this many vacations, et cetera, et cetera.

Does that make sense? No, it makes total sense. Yeah. And, Stephen, I tell you this, too. I think what gets weird is when you – because you're goal-driven. I can hear it in your voice. You want to know the target, and you're going to start reverse engineering and doom-da-doom-da-doom. And I would tell you, ask more open-ended questions.

And by open-ended questions, I'm saying these are things that you have to respond. Someone doesn't just say yes or no. Tell me how you'll feel when, when we travel, where are we going? How long are we staying there? Who's with us? What are we doing? And what happens is, is it becomes more heart language than just head language. And you start to ask those questions and I want you to hear with your heart, not your ears. And what will happen is you start to hear it a whole different and other way. Remember, opposites attract. I mean, it's crazy.

Don't tell me God doesn't have a sense of humor. Right? But you come together, and now it's that learning. And remember, Steve may have been thinking about this conversation they need to have for six months. He may have been thinking, he's been looking at the spreadsheet every month. Hey, we're getting to the end. We need to be doing this. He's had this head, and then he looks at his wife and says, Hey, we're getting to the end. We need to be doing this. He's had this head.

And then he looks at his wife and says, hey, what do you want to do? Let's have a goal meeting. And this is new for her. Brand new. And I haven't had six months to think on it, to imagine it, to dream in HD on it. You know what? That's a good point. And I actually talk about it.

It's like reading a book. Yeah. If you've got a book and you're on chapter six and you just hand it to somebody, they are on the intro. That's right. Right? Give them a chance to catch up. Let's get on the same chapter. And you can learn about Dreamin' in HD at my website, ChrisHogan360.com.

I'll walk you through that bad boy and help you get down to the numbers, people. Stephen, thank you for that call. You helped a lot of people out there today, my friend. This is The Dave Ramsey Show. I'm Chris Hogan, and hosting along with me this hour is Dr. John Deloney. And we are excited to take your calls. The phone lines are lit up. Let's keep Kelly busy, people.

The number to call is 888-825-5225. Again, that's 888-825-5225. Don't forget, too, you can find us at Ramsey Show on social media. And as well as you can find John on there at john deloney on facebook youtube and instagram you can find me at chris hogan 360 on instagram and twittables and all the things out there so follow us help john and i defeat rachel and christy okay i'm be honest with you people i'm just straight appealing to you okay we must beat these ladies. It's imperative. They're killing us. They are crushing us.

John, I need you to do your part. They've got so much fancy stuff on their site. They put all the videos, fingernails, and all the stuff. They're beautiful. We're not. I have one hair. One. That's all I got. So listen, if we can appeal to you, American public,

help John and I do better. Follow him at John Deloney. Help me at ChrisHogan360, and that way we beat those ladies. All right, John. Let's go to theblinds.com. 100% satisfaction guarantee means even if you mismeasure or pick the wrong color, as Chris Hogan is wont to do, they'll remake your blinds for free. You get free samples, free shipping, and with the new promos they run every month, you'll save even more. Use promo code RAMSY to get the best deal.

Rules and restrictions apply. Today's question comes from Barry in California. He visits DaveRamsay.com to ask, I'm 34 years old. I'm about to do step one when I start work next month. I have $60,000 in in debt and i was wondering why dave ramsey says use the 401k instead of the roth ira i feel like i would have more control using a roth and the taxes won't be so harsh if i need to take out the money early so why is the 401k

better than the roth ira okay all right barry bottom line here's the deal first you're going to attack that clean that up get it out of your First, you're going to attack debt, clean that up, get it out of your life. Then you're going to start to build up an emergency fund. Then you're going to get to investing. I have to say that because people try to skip steps. You don't jack with the recipe. Okay? That's first and foremost.

But why would we tell you the 401k over the Roth IRA? Well, it bottom line boils down to sheer counting. With a 401k, you can put up to $19,500. With a 401k, you can put up to $19,500. With a Roth IRA, you can do up to $6,000. So you can put more away utilizing the 401k than you can the Roth IRA. Now, if you're age 50 or over, with the 401k, you can do another $6,000 catch-up provision. Same can be said with the Roth IRA. If you're 50 or over, you can do an extra

thousand, so you can do seven. So it just boils down to pure math. You're able to put more money away in the 401k than you can with the Roth IRA. Plus, if you have a match, we're talking free money. So, you know, it's kind of one of those things where we say match beats Roth, Roth beats traditional.

What we're saying is that if you have the opportunity to invest and you've got a match, the match is free money. So that's going to beat the Roth. But the Roth is going to beat a traditional 401k where you don't have a match. And this is a matter of order, right? You can max out your 401 and still do the Roth too, right? Oh, absolutely. You can. You sure can. And so it's all a matter of getting to that 15%. So that's the goal. So Barry, I love where your head is. Again, get yourself out of debt, get your emergency fund up, then invest. But if you have a 401K with a match, that's the way to go.

Now, if you don't have a match in your 401K, you can start with the Roth IRA, but you're going to go back to the 401K for the remaining 15%. Good question. Cool, man. Good question. Very, very good. Okay, all right, we're going to go to the phone lines. If you're out there and you've got a question about relationships, about feelings, about money, call us.

888-825-5225. Again, that's 888-825-5225. Do me a favor. Go ahead. Put that in your phone. Okay. Go ahead. Make us a contact inside your phone.

That way, if you want to call John, you can call his show. If you want to call my show, you can call Ramsey. You just have us all in there. We're like family, people, so put us in the phone. All right, we're getting to the phone lines. We've got Bobby in Modesto. Bobby, how can we help you? Hi, thank you guys for taking my call.

I really appreciate it. Sure, buddy. What's on your mind? So I was calling about a year and a half ago. Me and my wife, we moved in with her with her parents my in-laws and um we were 35 000 in debt a year and a half ago we moved in and in that year and a half we were able to pay off all of our debt with the financial peace university and all that stuff way to go bobby way to go man hey thank you man and uh we have a bit we're

we're working on our step three which is um i think we got about 10 grand i think a little under 10 grand um in our baby step three and we're looking good you know build that to about 20 22 000 um but we're we're in a we're in a one her parents' house, and it's me and my wife and my two kids and a newborn. And so it's been a little stressful lately. Brother Bobby, that's the understatement of the century, my man. I mean, man, it's been tough. It's been tough, man. It really has.

But the good thing is that, you know, we knew it was going to be a little rough, but knocking out that deck, getting our money in order, and really seeing progress there has helped ease the process a little bit. We've kind of just made it work. She's not working right now. I'm working. I had gotten laid off in March, but then I got a job by the end of March. I got a job working with a garbage company, and I've been working even more. I'm making more now than what I was making before.

That's right. I've been giving my tithes, giving my offerings, savings, and really just believing the Lord that he's going to provide a way and stuff like that. Now, my question is, it is taking a little stress on our marriage, me and my wife and our kids and everything, and we're in a position where we can move into a place to rent and have our own place, which I know is needed. I'm just kind of like debating, okay, is it time to move because of the marriage?

And I know that is very, very important, and I don't want to put more stress on it than needs to be, especially with our situation do i kind of talk to my wife and say you know what let's hold on a little bit longer or let's get to our six months of emergency fund and then go out with everything going on with covid and stuff uh it's been a weird year even to step out and get into a you know uh hey bobby uh bobby yeah Bobby, y'all should move. Yeah. You should move. Tomorrow. Yeah, okay.

Move tomorrow. I can even hear in your voice, you know the answer to that. Tomorrow is pretty soon, so I'm being sarcastic. You need to sit down with your wife, sit down with your in-laws, and let them know, hey, we got 30 days or 60 days. Go find a good apartment. And y'all have done, man have you you have epitomized sacrifice y'all made a hard plan you are an absolute ninja you and your wife and i'm just

going to change your terminology she is working real hard she's just working inside the home not outside the home and y'all done it man you're paid off you're halfway towards your six month emergency fund yeah um slow down a little bit now now you're gonna you're halfway towards your six-month emergency fund yeah um slow down a little bit now now you're gonna have to refocus and re-energize put some put some love and some energy back into that marriage bucket three kids will wear anybody else wear anybody out much less all crammed in a one-bedroom um one-bedroom room right but good for you guys y'all kick some butt You're an inspiration to folks across the country. But yeah, it's time for y'all to move out.

Yeah, I agree. I think, you know, getting back, talking to his wife, setting up the time frame, being able to communicate up front and clear with the in-laws so they can start to prepare for this. Everybody mentally and emotionally can start to move down the path. And I think I agree with you. I think it's right. In-laws are going to miss the kids. Of course they are. And so let's talk i think it's right laws are going to miss the kids

of course they are and and so let's talk about it babysitting yeah and we're gonna have to deal with feelings with this because the the in-laws are gonna feel like look we opened up our home for you right you're just gonna take our grandkids away you're just gonna take the grandkids and leave or they may be laying in bed every night going get out of my house get rid of my house of my house gosh remember we just had one basset hound, how quiet everything was, right? Remember when the remote didn't walk away? Oh, man. You left it in one spot?

Yes. You know what? It could be a little bit of both. It's going to be a little bit of both. But you know what? As adults, you talk about it. Man, lay it out. I like that.

And you could hear it in his voice, couldn't you? He knew. He knew calling. He's ready. He's like, boy, this has been rough. It's been a sacrifice. But you know what? You did make a sacrifice.

You all, they opened up their home. You all, I'm sure, were respectful in it. And you were able to make progress. So now it's a matter of it's time to move forward. Now, I am going to encourage you, get over to Ramsey Plus so you can start building your budget now and what that's going to look like with the new rent and the utilities and the things you all haven't been paying. So we've got to go ahead and start to build that budget 30 days out and let's start living according. That's the process, my friends.

Thank you all for tuning in and listening. This has been the Dave Ramsey Show. On your smart speaker, you can add our skill by saying, Alexa, open the Ramsey Network skill. From there, you can listen to all our shows. Ask Dave money questions like, how do I invest my money? Or what is the debt snowball? Find out more at DaveRamsey.com slash smart speaker.