The Ramsey Show - App - DAVE RANT: Act Your Wage! (Hour 3)

Episode Date: January 22, 2020

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🎵 Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studios, it's the Dave Ramsey Show, where debt is dumb, cash is king, and the paid off home mortgage has taken the place of the BMW as the status symbol of choice. You know, this money thing is very interesting, you guys. It's very interesting because very few things are what they seem. As you get older and uglier like me and my ears continue to grow, as well as other parts of my body continuing to grow, my wife says my belly is continue to grow, as well as other parts of my body, continuing to grow. My wife says my belly is continuing to grow, and she's right.

As I do that, I am more and more amazed at how dumb I was and how I really didn't understand that very few people who look like they have money actually do. The huge car, expensive car, the vastly expensive purse, the vastly expensive vacation on Instagram, the vastly expensive fill-in-the-blank are very seldom actual indicators of wealth, particularly the first level of wealth. I would call the first level of wealth

your first to your first $10 million. If you have a net worth of $1 to $10 million, the average person in that category is not average to start with. They're way above average. But the typical person, I guess I should say, typical family that has a $1 to $10 million net worth is very understated. They buy their clothes at unimpressive places in their unimpressive clothes.

They enjoy nice vacations, but they seldom post them for you to see on Instagram because they didn't take you on vacation. They wanted to go on vacation. The Christmas presents around the tree are very reasonable. The car that they drive is understated, and the valet is seldom impressed until he gets the tip. It's usually a used Camry or a nice used Honda or a nice old pickup truck of some kind. Because the people that achieved that first layer of wealth, that $1 to $10 million, the way they did it is they didn't do it for you.

They're not mad at you, but they don't care what you think. They were not living their life to impress others. They loved their life, not yours. They were not trying to emulate or be the Joneses. They just didn't care what you thought. There's a real thing that says when you quit worrying about what people think and you're actually living life for you and your family and that causes you to make completely different purchases and live a completely different lifestyle one of the greatest compliments i had was i had a very important gentleman who was a top level corporate executive with one of the major companies in our area, come to visit us one night in our home, and he said, I was interested to meet you.

He said, I've been checking you out. I've been asking around town, around Nashville, about Dave Ramsey. And he said, you know what I always hear? I said, I'll be interested to hear that. That'll be interesting. Know what? That you're unassuming. Hmm.

It's kind of a nice compliment. It's another way of saying I don't really do stuff for what you think. I get to do a lot of nice things, but I'm really not doing any of them for you. And I don't mean that in a mean way. I'm just, you know, I didn't buy the house I live in for you I bought it for me and I don't care what you think about it one way or the other the same with my boat or my car or my vacation or whatever and my net worth these days is well in excess of the 10 million dollar level so I'm starting to enjoy some things at a different level. And the people that I know that are in the $100 million, $200 million, they do have some

things that are flashy and that are not unassuming. Because they can afford it. It's a very small percentage of their world. I've got a friend who's worth about $200 million. He bought his wife a $5,000 coach purse, which my brain from Antioch, Tennessee, I couldn't even get my head around the idea of doing that until I did it for my wife later. But it blew my mind that somebody would pay that for a purse. I still don't understand it, but it's just SWI. Sharon wants it. So, but you know, the thing I realized it's an uber who should ever spend that on our parts well nobody should probably but the truth is it's such a small percentage of that guy's world he's got 100 million 200 million dollars five thousand dollars in spit it's not even you know you know it's not like you it's like you buying a biscuit right

doesn't even come up and so it's ratios at that point but what my point is is the first level of wealth not the guy with 100 million or 200 million or the gal with that's a billionaire or something like that that's a different world and um you know that that that's that's a different kind of spending and a different kind of lifestyle because when they buy a jet that's a different kind of spending and a different kind of lifestyle, because when they buy a jet, it's a smaller percentage of their world than it is, than when, you know, most people buy a car, right? And so it's a really different world at that point,

but the 1 to 10 million, that first layer of wealth, are typically people that if you walk past them in Walmart, you'd have no idea. We were walking out of a church that I was speaking in in Orlando, Florida the other day. And I walked past this guy, tall and slender, gray hair, I'm guessing 65 years old, blue jeans that are pressed with a crease down the middle, really nice cowboy boots and a big Texas belt on and a pressed shirt. I mean, he looked like a million dollars. He was wearing blue jeans and cowboy boots.

But as I walked past him, I told one of my guys, I said, that's Everyday Millionaire. I can spot him now. Because he looks like just a guy with some jeans and boots on. But they were very nice, and it was clean and pressed, and, you know, he took care of himself, obviously. He'd had a haircut, you know, razor had met his face, you know, all that kind of stuff.

And so that kind of thing is just you know but you could tell even though there was nothing flashy he was just still put together you could feel i can feel them i can feel the everyday millionaires now not all of them but i've just met so many of them over the decades of doing this and working with you so my point is my friend tom stanley who wrote the book millionaire next door wrote another book later called stop acting rich doing this and working with you. So my point is, my friend Tom Stanley, who wrote the book Millionaire Next Door, wrote another book later called Stop Acting Rich.

That's a great thing to do. Act your freaking wage. Act your wage. Stop buying stuff you can't afford with money you don't have to impress people you don't even really like. It's a signal you're stupid. It's not a signal you're rich.

The signal that you're starting to be rich is that you didn't do any of that. That's my point. This is the Dave Ramsey Show. Okay, I need you to listen to this. When you're on Wi-Fi anywhere in public or at home, you're at risk of hackers easily seeing every site you visit and search that you're doing online. It doesn't matter if you're on your cell or laptop. Public Wi-Fi is a hacker's paradise. They can see you visiting websites, streaming, downloading, or uploading photos, uploading files, and more. I'm not telling you this to scare you. I don't operate in fear, but I want you to be aware and take action. You need to download an app called CyberGhost VPN on any device you access

the internet with. CyberGhost VPN helps you keep your connection on your own Wi-Fi and any public Wi-Fi secure and private. Over 34 million people worldwide have downloaded CyberGhost VPN. Download it now. Just search CyberGhost on iTunes or Google Play, or go to CyberGhost.com. Melissa is with us in New Jersey. Hey, Melissa, welcome to the Dave Ramsey Show. Thank you. How are you, Dave? the Dave Ramsey Show. Thank you. How are you, Dave? Better than I deserve.

What's up? So my husband is in the military, and we just found out that we're moving this summer. And it's not a surprise. We move every three years, every three to four years. But it's looking like we're going to end up in North Carolina. We own a home here, and we're thinking of selling it. Well, we would like to sell it. A real estate agent, we bought it for $379,000, and a real estate agent told us that we could probably get like $430,000 to $450,000 for it.

Good. And it's in really good condition. So we're excited about that. Yeah, it's a lot owning a home um so i guess my next question would be now that north carolina is in our future um would you suggest buying or renting how long do you think you're going to be there um probably three three to four years um max okay what. Okay. What part of North Carolina? Uh, it would be the Camp Lejeune area.

So like Sneaksbury to, um, Jacksonville. Mm-hmm. Mm-hmm. Okay. All right. So the thing you would do is you would have a real estate agent, uh, help you with some statistics and they can drop a pin in the MLS software typically and say within a three to a five mile radius of the home I'm looking at in North Carolina,

I need to know two things. In the last three years, what is the average appreciation rate? How much of house has gone up a year percentage-wise. The second thing you'll want to know is DOM, average days on the market. Okay? And usually they're going to be somewhat matching, meaning if you have a high appreciation rate, which you've had where you are now, the thing's gone up in value considerably. Typically, it's in a market that's hot, which means there's going to be low days on the market.

You put it on the market, it's going to sell in 20 days, right? Yes, sir. So if you're buying in an area in North Carolina that's going up 10% a year and you're going to be there three years, and the average days on the market is 20 days, meaning you can sell the thing in a month it is going up more enough that it will cover the cost to turn around and resell it then that's an area you would buy in conversely if the average days on the market are 270 days nine months means a slow market doesn't it yes? Yes, sir. And in that area, you might find that the prices go up 3% a year.

Well, in three years, you're not even going to make 10%. You're going to lose money on this house, and it's going to take nine months to sell it. You would rent in that area, wouldn't you? Yes, sir. So if the area is not attached to a major metro area, if it's one of the Army bases, and I don't know the Lejeune area. I mean, I know the name Camp Lejeune, but I don't know the area around it. If it is a small town and 90% or 80% of the houses that are sold are military,

you're not going to see good appreciation there because everybody buys and then everybody puts it back on the market three years later. So there's always an oversupply of houses and they very seldom make good money on them. And there's a lot of those military markets around. You do not want to buy in one of those markets. You'd be better off to rent. Do you see what I'm saying? Yes, sir.

But in your case, where you were in in jersey there you were in a big enough metro area that the the economy was more than just the military and so there was not it was you know there was good appreciation there's enough of a shortage of housing that your house will sell fast and you're going to make some money on it and you're excited about that if you have that opportunity where you're going then i would buy so what I tell folks is most of the time in the military, you're not going to buy because most of the time you're not going to find an area where it's going up dramatically in value and it'll sell fast. But if you're in the San Diego market and you're in the Navy, yeah, you may very well have that.

You do have that, actually. So you just got to look at all of those factors and look at those two statistics average appreciation rate average days on the market and that'll tell you what to do so very very very well done and thank you for your service to the country we appreciate you all right russell is with us in florida hi russell welcome to the dave ramsey show hi mr ramsey thanks for taking my call sure what's up i've been listening to you for about three months now, and I'm all gung-ho on trying to get out of debt and pay off my bills. I'm 51 years old. I've been at my job for 27 years, and I was planning on retiring at 62.

My wife and I combined, our income is like $110,000. We have about $140,000 in IRA. And for my job, I get a pension. Now we started, we downloaded the EveryDollarBudget app and it appears that we have $49,000 worth of debt for medical bills, house renovations, and things like that. And I want to be on target to retire at 62. So the question is, right now, we were wondering, after putting all the information into every budget, every dollar budget, it seems we have about $1,200 a month left over for our debt. I was wondering, should I take a loan on my 401K and my 403B to pay that off?

No. No? Never borrow on your 401K. And the reason is that the interest rate that you pay yourself is nowhere near what the mutual funds inside of there should be paying you, number one. Number two, when you leave the company, and you will leave when you die, get a better job or they lay you off, you will be charged a penalty of 10% plus your tax rate. So you'll be hit for 30% to 40% if something happens and that job doesn't last as long as that loan lasts, and that happens a lot.

So no, I would never do that. Instead, I would just roll up my sleeves and I'd get on a very, very, very tight budget and I would start whacking my way through this. The numbers you're giving me tell me you're probably going to adjust your retirement date or when you retire, you're going to have another career lined up, one of the two, but you're not going to go to making zero money at 62 years old. You're not going to be in a position to, you're not going to have enough. Um, you've got some debt to clean up. You don't have enough of a nest egg bill. And so you're going to either continue to work at that place or you're going to have another,

an alternative career, an encore career, we call it, um, off the backside. And I'm not talking about a minimum wage greeter at Walmart. I'm talking about a real career for a guy like you that knows how to make serious money. And so you either need to continue your current career for another three years or so, or you're going to need to do something else to create money, which you should anyway. You're only freaking 62 years old at that point. What are you going to do, sit on your butt for 30 years? You know, you ought to do something. So that's just an idea hey thanks for

the call man nancy is with us nancy is in new york hi nancy how are you hi dave thanks for taking my call sure what's up uh i'm a nurse in new york city i actually work both clinically and in administration um i'm going through fpu right now. I'm on step two. I just have student debt. And I'm looking for supplemental work. And there's plenty of jobs for nurses. Yes. Some of them will want to hire me before they even interview me.

And sometimes I feel a little bit challenged by the patient load or the pay isn't as high and I'm just not sure how picky I should be in this process. I really want to get it done sooner but the jobs that are higher paying and more reliable in terms of taking care of us with patients are they just take longer to onboard. Okay I would take a little bit more time and onboard into a situation that you're proud of and that you make more money. Your reason for doing this is to make more money. So taking less money is a bad idea. Number two, then you don't ever want to engage in things with your energy and your life and your training, especially in something like the wonderful career of

health care, where you're engaging in something where you don't feel like patient care is up to standards because the patient load is too high. And you've got a good judgment on that. You've been doing this a while and you know what you're doing. So I'd be professional about it. Take just a tiny bit more time, make more money, and do something you're proud of. You were going to do that anyway. I'm just telling you what you already knew.

This is The Dave Ramsey Show. Are high health care costs getting you down? Are you confused trying to navigate your options? Do you wish you could find an affordable, biblical solution to your health care costs? Based on New Testament principles, Christian Health Care Ministries, or CHM, helps Christian families, churches, and ministries join together as the body of Christ to share their major health care costs. Christian Health Care Ministries is the original health cost-sharing ministry, a Better Business Bureau-accredited organization CHM members share to pay each other's medical bills. It's not insurance. It's Christians financially and

spiritually supporting each other. It's what Christian Healthcare Ministries has done for over 35 years. And our members have shared over $2.5 billion in medical bills. To learn more, visit chministries.org. That's chministries.org. Christian Healthcare Ministries is a proud sponsor of Dave Ramsey Live Events. chministries.org If you've talked about selling your home, you've probably heard this from your neighbor who's a know-it-all. Oh, the market's good. You'll have no problem selling.

What your neighbor isn't telling you is that not even a good real estate market can guarantee your home will sell for every dollar it's worth. The biggest factor that goes into selling your home for top dollar is not a hot real estate market. Let me say that again. The biggest factor that goes into selling your home for top dollar is not a hot real estate market. It's an experienced agent who knows how to get the most possible money in any market. It means they price your home right, they market it, they get buyers in the door, and it is sold quickly. This is not a monkey with a license. It's counting on the market to do the work for them. This is a professional who knows how to leverage a good market and cares about you getting 100%

of your home's value. Don't lose money by choosing an amateur agent. Find an endorsed local provider. Check us out at DaveRamsey.com slash agent or ELP at DaveRamsey.com for real estate. Our question of the day comes from Blinds.com. Find out for yourself why they're the number one online retailer of custom window coverings. You get free samples, free shipping, and with the new promos they run every month, you'll save even more. Use the promo code Ramsey and you'll get the best deal.

Kelly's in Ohio. Dave, I wanted to ask if there's a suggested amount or percentage to save for kids' college. My kids are currently two and five. We're not saving for their college since we're still in Baby Step 2, but I want to plan or think ahead. Is there a formula you suggest using to invest in their future? Thank you. Yes, but it's not a set percentage like we say 15 of your income and that'll cause you to retire with dignity in almost every case unless you're 65 years old when you start doing that you know uh but even then it'll take you a

long way towards your goals so but but with, but with kids college, we don't know whether your kid is 15 or 15 months. And so the length of time that you have to save it enters into the equation. We also don't know what your college plans are for them. And so what I would tell you to do is to figure out what the current cost of the college is, the university is, that you plan for them to attend. Okay, my kid's going to an in-state school. They're going to go to Ohio State University. You're in Ohio.

Okay, then call Ohio State University, find out what it costs tuition to go to school there. Now, that doesn't include room and board. You can put room and board in there if you want to. If you want to, either figure is fine with me. And then, you know, you need to put that into a calculator because inflation on tuition is around 7.2 percent. In other words, the tuition inflation is roughly double regular inflation. And so get your stuff going in. Get your, you know, say, okay, it costs $14,000 a year.

I just made that up. I don't know. It's probably pretty close, though, for in-state tuition to Ohio State University. All right? That's a year. You need four years of that, which would be around $60,000. Okay, what is $60,000 if you have a three-year-old? Fifteen years from now, it's 7%. That will tell you how much you need to have as your target.

Then you say, how much do I need to put in a month in a mutual fund, and what are my mutual funds going to average? And that will tell you if you can hit that target or not. So you'll be pretty close for a baby saving about $200 a month in a decent mutual fund in a 529 or ESA, and that'll get you pretty close to in-state tuition and some room and board as well. You won't be that far off if you do that.

And so you can sit down. If you don't want to do all those calculations yourself, you can sit down with a SmartVestor Pro in your area, and they'll help you do that. Click SmartVestor for any of your investing needs at DaveRamsey.com. We're not in the business, but these are qualified investing professionals that we have vetted. There's over 1,200 of them nationally that we endorse and that, you know, approach this topic of investing with the heart of a teacher, and they'll help you get that going. But that's how you run the calculation, and that's why it's

not as simple as just saying save 12%, save 2%, because we don't know where your kid's going to go to school. We don't know how old your kid is now. And that'll make a big difference in that process. In other words, if you've got a 17-year-old, you know, there's going to be some other stuff happening. You're not going to have enough. They're going to be working. You're definitely going to an inexpensive school.

They're going to be looking for scholarships, you know, that kind of thing. If you've got a 17-month-old, you've got plenty of time. So I don't know where you are in that game, and that will affect the math very dramatically. All right, Jessica is with us in Texas. Hi, Jessica. Welcome to the Dave Ramsey Show. Hi, Dave.

How are you? Better than I deserve. What's up? Yes, sir. So, okay, where to start? My husband and I are having a hard time figuring out what to pay first. So I've listened to your podcast. I'm upside down. I was down in Bada, Tahoe less than a year ago. The payment's about $900. The interest rate. Good Lord. I know. My interest rate might be at 15%. I mean, it might be between 13 and 15 but we're trying to

get rid of it good i know i wouldn't try to get rid of it i'd get rid of it oh i trust me you talked to somebody earlier and you were saying uh you hope it blows up when you start it that's me but i just wish i'm i hope i'm not in the car but um yeah we're trying to figure out we tried to get rid of it um we're upside down about 30 well, if we go trade it in, it's $13,000. If we do private sale, it's about $5,000. Yeah, good. But so we have that in cash. We have about $6,300 in cash and savings.

So we've been kind of holding off for that. But we have $137,000 in debt, including the car. But we also just did our taxes, and we already owe the IRS $20,000. My husband does from an old self-employment issue with his CPA. And we're making payments, but we did our tax return this year, and the bill's coming in at about $9,000. How are you missing your taxes so far every year? So it was side hustles last year.

We did a lot of side hustles. But you didn't set aside any money for your taxes? Well, because we got married, we undershot the allowances. Like, I was writing off a lot of allowances, and so was he. And then when we got married, we didn't change anything. And I had had mine from when I was making, like, probably like $ had had mine from when i was making like so what is your household income we make 142 000 net okay uh we don't know this is this is this is the first of of February, not quite. You need to have $9,000 saved to pay your taxes extra by the time your tax bill comes due April 15th,

and you can do that with your income. You have the money already saved to get rid of the suburban. Get rid of the freaking suburban. Okay. It's absolute insanity. Okay. Now, you got rid of $9,000 and you you just got rid of what do you owe on that stupid car uh i owe 30 um 36 000 on the tahoe that's all okay good we'll get rid of it okay so now we got rid of almost uh 45,000 worth of debt, right, in those two things. That's a big move.

That gets you started really, really well, and then I would go from there and start your debt snowball. So I finish the other $20,000 that I owe the IRS from? Yeah, I'd probably put that at the front of your debt snowball, but that's after the $9,000 and after the Tahoe is gone. Okay, that's what we were wondering. Yeah, those two things have to happen by April 15th. I want that car gone and that tax bill from this year gone, and don't replicate this problem. That's two times you've had a problem with your taxes. Learn your lesson, figure out, and start setting money aside when you're doing

a side hustle. You don't use all the side hustle money. You need to calculate your taxes accurately as you're going along so you don't find yourself in a hole every year. Because then all you're living is just crisis to crisis to crisis. Life's too short for that. That's how you end up with a 15% interest rate on a $40,000 suburban. This is The Dave Ramsey Show. suburban this is the dave ramsey show one of my favorite parts of this show is hearing your debt-free screams. You guys are our heroes.

You've kicked debt to the curb and you've saved for the future. Now we want to celebrate with you. If you have lived like no one else and are currently in baby steps four through seven, well, it's time to enjoy some money. And the perfect place to do that is on board our first ever Live Like No One else cruise in March. That's right. Just a couple of months away.

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Head over to RamseyCruise.com today to reserve your room. Our scripture of the day, Proverbs 24, 16, For the righteous falls seven times and rises again, but the wicked stumble in times of calamity. Margaret Heffernan said, As long as they are well-intentioned, mistakes are not a matter for shame, but for learning. They're a course correction, and that's what we all have. We all have course corrections.

Some of them are more violent than others for those of us, depending on how dumb I am, how difficult my course correction is, right? Wow. Cody is with us. Cody's in Minnesota. Hi, Cody. Welcome to the Dave Ramsey Show. Hi, Dave.

I appreciate you taking my call, and I appreciate everything you do. Thank you. How can I help? My question is, currently, I'm done with Baby Steps 1, 2, and 3. And I'm getting to the point where I need to contribute 15% to a retirement. My question is number one, my employer, I pay 4% to my 401k and my employer matches 4%. Do you want me to save an additional 15% or should I be saving an additional 11 on top of that 4%? 11. 11. Okay. And then, um, I just found your show. So I, I have some questions. I purchased a property. Um, it's got some agricultural rental land. Uh, appraisal was 280. I purchased for 200 in May of 17. And since then I've chipped 52,000 off of the principal.

And so it's contract for deed through my family at 3%. Being agriculture, I can't get anything from the bank for less than seven. Should I continue going through the contract for deed? I know you're not a huge fan, but 4% is kind of a decent amount. Yeah, I'm not a huge fan at all because you don't own the property. If your family member gets in a car wreck and gets sued for a half million dollars and they lose the lawsuit, that lien will be on your property because you don't own this property, they do. Even though I have a legal binding contract doesn't matter the deed the deed is not in your name the deed is in their name and any assets that they own

can have a lien placed against them in the event they get involved in a lawsuit or an irs lien could be placed against the property and even though they wanted to give you a deed, they couldn't give you clear title. So you are in a very precarious position. Okay. You could pay this all the way down to only $30,000 owed and never end up getting the deed. Okay. I didn't realize that. Yeah, you don't have the deed.

It's not in your name, and when it's not in your name, it's not your asset. You just have a right to buy it. That's what the contract says. And if you continue to pay, the right to buy it will cost you, at the end of the contract, zero, because you will have paid down the principal. Now, I would change the structure of the contract for deed to a deed in your name with a mortgage against it for the same terms and whatever the paperwork costs to transfer this from a contract from deed to a deed in your name owner financed by the family member i would pay the cost for the documents to be drawn up

by the attorney because with the situation you're sitting in is very precarious, very dangerous. You could have the sweetest, nicest relative that got themselves in some kind of an accident or something, and you could end up losing everything you put into this. So it needs to be in your name, and you don't lose it. If they have a mortgage that you owe them and they get into a lawsuit, somebody could take the mortgage away and you'd owe someone else, not your relative, but they can't take your property away. So you need to get the property into your name.

That's why these contract for deeds are land contract, they're sometimes called, are very, very dangerous. Jimmy is in North Carolina. Hi, Jimmy. Welcome to the Dave Ramsey Show. Thanks for taking my call, Dave. Got a question regarding our mortgage. Right now we're on a 30-year fixed.

Our payment's about $1,100 a month with a 4.5% interest fee, and we're on the PMI right now. So we want to get it refinanced. I'm looking at either a 15-year at 3.125% or a 10-year at 2.99%. The 10-year payment's $1,800, and the 15 is $1,350. I know that there's some kind of formula that I'm missing on how quick the closing costs and prepaids were. Have you gotten a quote on the closing costs? Not the prepaids, but the closing costs. Yeah, I'm at about four grand.

Oh, for the closing costs, it's about $2,900. Okay, and what's your loan balance? $167 right now. Okay. So every 1% that you save is $1,670 a year, and you're saving about 1.5%, and so that's going to put you at about $2,500 a year, $2,400 a year. Okay. So we're in there, okay?

And interest savings, regardless of what your payment is, okay? So if you've got a 3% loan, 2.99, and you've got a 4.5, that's a 1.5 spread times your loan amount is going to put you at about $2,400, $2,500. If your closing cost is $4,000, it takes you less than two years to break even, and everything after that is gravy on the biscuit in savings. You understand? Sure. Okay. And you'll have a higher payment at a 10-year than you will a 15,

but if the interest rate is the same, the savings is exactly the same regardless of the payment. Now, it doesn't save you in cash flow but it's what you're yeah what's your real savings it's not the principal reduction your real savings is the interest rate savings now the other savings on top of that is the pmi what are you paying in pmi yeah it's only 72 a month which is it ain't nothing but it's not as high as it could be. Okay. All right. But that's another $1,000 a year off, roughly.

Yes, sir. Not $950 a year. Okay. So that puts us at $2,400 or $2,500 plus $900. And so we're at $3,300, $3,400. And you're closing costs. You're going to break even in slightly over a year by being rid of the PMI and by being rid of this so i love the 10-year plan that makes sense yes makes a ton of sense hey i also i just want to thank you over the last year we've really dialed in and been listening to you and we've been able to pay off all our debt get our six-month emergency fund have a another

beautiful baby and um you know be sitting pretty with with their house. So your podcast has gone a long way in our lives. Well, thank you, man. I'm proud of you. Very well done. Very well done. Sounds like you got your act together. Things are happening in the right direction. Very, very cool.

Open phones at 888-825-5225. Kelly is with us, and I picked up the wrong line. Let's see if I can not. I can't get it to put on hold. Can you get it on hold? Thank you. I'm trying to put it back on hold. I can't get it.

All right. While you guys get my phone straightened out that I screwed up, Samantha is on YouTube. If I have an emergency in Baby Step 4, do I stop the investing again to rebuild my emergency fund? Yes, if you have to. If you can't rebuild it very, very quickly. I mean, if you have a $500 or $1,000 emergency or whatever, fine.

Fix that and then go from there. Are we okay? All right, let's see if I can do it. If I push the right button, I'll get Kelly, which is what I was trying to do in Florida. It was all my fault. Hi, Kelly, how are you? Hi, Dave, how are you today?

Better than I deserve. Now I'm short on time. How can I help? Yeah, hey, it's a financial question, but it's not really for now. It's kind of more future-oriented. In Florida there we have our auto insurance and in florida it's a no-fault state if there's a vehicular accident right um i was i was riding my bike one day almost two years ago and i was hit by a car um my husband thankfully

and i both very believe very much in insurance. And so the lady who hit me only had $10,000 worth of coverage, and we recovered that. But my insurance company in Florida, we have, and I don't know if it's the same everywhere else, it's called underinsured or uninsured motorist coverage. We have that. We thankfully have underinsured motorists. You're going to have to ask your question fast. I'm out of time. Okay.

What is the best way to deal with an insurance company that absolutely is refusing to make a claim that even... You have to do one of two things. Drop them or sue them or both. That's really what it comes down to. You're going to need legal representation. Sorry, I didn't have time to get into the details. That puts this hour of the Dave Ramsey Show in the books. 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. Hey, it's Kelly, associate producer and phone screener for the Dave Ramsey Show. This episode is over, but if you heard about a product or service and didn't have a chance to write it down, don't worry. We list everything that is mentioned during this episode in the podcast show notes section. Thanks for listening.