The Ramsey Show - App - DAVE RANT: Stop Being Mean! People Need Hope, Help & Healing. (Hour 1)

Episode Date: January 28, 2019

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Starting point is 00:00:00 Live from the headquarters of Ramsey Solutions, 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. Thank you for joining us. Open phones at 888-825-5225. That's 888-825-5225. We're glad you're with us, America. Thanks for joining us. Ronald starts off this hour in Effingham, Illinois.
Starting point is 00:00:59 Hi, Ronald. Welcome to the Dave Ramsey Show. Hello. Hi. How are you doing? Better than I deserve. How can I help? I bought a property.
Starting point is 00:01:09 I'm in step seven. I bought a property, and I'm wanting to give it to my girlfriend or sell it to my girlfriend and her daughter, but they're deep in debt. They're going to rent it from me until they make the payments plus the upgrades on it, and then they can have it. I don't want the property, but I want them to have it. Is that a good position to put them in or not? You're going to give this lady that you're dating a house?
Starting point is 00:01:39 I'm going to sell it to them, actually, but they're going to pay it as rent. It's like a rent-to-own. I own the property. It's in my name. They're going to pay it as rent it's like a rent to own i own the property it's in my name they're going to pay me a rent on it and then when the rent equals the amount that i paid for it plus all expenses on it then i'm going to deed it to them is that a good deal or a bad deal okay that is what's called a land contract or a rent-to-own, depending on how you structure the legal documents under it. A land contract is you have a contract with them that says when you pay payments equal to this and a monthly payment equal to this, an interest rate equal to this, the total of the payments equals.
Starting point is 00:02:19 Why? Then we deed you the property. The property is in her name or in your name until then, and it is a contract for deed, a land contract it's sometimes called. You can do it that way, or you can lease it to someone with an option to purchase it. Their option to purchase it would reduce each year that you let them lease it, and it would be the same kind of a thing. That's probably a little cleaner and probably a better idea in general.
Starting point is 00:02:50 So let's say I was going to lease a property to someone with an option to purchase. If they did not pay the lease payment, their option would be void, and you evict them like a tenant in a worst-case scenario. In a land contract, in most states, you have to go through a foreclosure to get them out. And now all that sounds weird because we're talking about your girlfriend, which also sounds weird that we're doing this deal with. It sounds like you're doing a long-term deal with your girlfriend. It's going to be oh probably seven or five seven years yeah
Starting point is 00:03:30 your plan is to never marry this girl to date her forever and let her be your renter my my problem is i don't think they can ever pay for it i don't think it'll ever happen that's where i'm at and i think that's putting a carrot in front of them think they can ever pay for it. I don't think it will ever happen. That's where I'm at. And I think that's putting a carrot in front of them that they can't ever obtain. Okay. Then why would you do that to somebody you care about? That's my problem. Yeah.
Starting point is 00:03:57 You're not blessing them with this transaction. You're cursing them. That's what I'm thinking. Yeah. That's the problem at the core of this and you just got to mix in this whole relationship part of it which it just gets weird i mean you're collecting rent from a girl you're kissing i mean that's weird that just gets strange you know and you're going to do this over an extended period of time not just until we get
Starting point is 00:04:25 married you know so um okay i i uh i mean it's just very it's it becomes really really awkward um it can be done but it just becomes it requires very very strong emotional and uh spiritual condition of both of you to be able to maintain proper boundaries and be able to go, okay, in this conversation, I am your renter, and in this conversation, I'm your girlfriend, and not let those two things jump back and forth. It takes a special kind of person to be able to pull that one off. And, you know, on your case, in this conversation, I'm your boyfriend. In this conversation, I'm your landlord.
Starting point is 00:05:03 And I've got to tell you, I treat my renters different than I do my wife. I mean, as well I should. As well I should. So I'm not mean to my renters. I don't mean that. But, I mean, it's just a different transaction. It's a different conversation. And that's what's going to make this awkward is crud for you, man.
Starting point is 00:05:19 So I'm probably just not going to do this deal. I'll probably just let her have her life, and you date her, and let that relationship progress as best you can. And if you ever were to get married someday, then obviously you would provide her a home as part of being her husband. And the two of you would make decisions about your home and that kind of a thing. So that would all be fine. That's all cool.
Starting point is 00:05:44 But I think you're going to get into weirdness here, and you're probably going to end up with a bad girlfriend deal and a bad tenant deal, both. That's what I'm afraid of, especially since you think she can't handle it. So we're walking into a situation where we know she's going to struggle, and that's double asking for it. So I'm probably going to pass if I'm you, based on what you told me.
Starting point is 00:06:05 Hey, thanks for the call. Kyle's with us in Orlando, Florida. Hey, Kyle, how are you? Hey, Dave, I'm doing better than I deserve. How are you? Just the same, sir. How can I help? All righty.
Starting point is 00:06:16 Well, my parents are long-time listeners. I'm a short-time listener, but I've been absorbing everything you're saying like a sponge. I've actually got my $1,000. That happened before I'd even heard of you. Speaking to my parents with it, once I told them, I said, hey, for the first time ever, I have $1,000. That's never been a thing before.
Starting point is 00:06:34 And they're like, you've been listening to Dave Ramsey? I'm like, who's that guy? They got me hooked on you after talking about it. My question is, I have $12,000 in a truck loan, and that's my baby. I mean, I spend all my free time working on it, wheeling it. It's a 4x4. That's my recreation. I also have $4,000 in medical loans, so $16,000 total debt.
Starting point is 00:07:07 But I've gotten to a situation where, this is an emotional answer, but I'm going to say it anyway, I need a house. And so currently I'm renting from friends, but I've got a lot of respect for them, and I'm living in their house it's not home for me gotcha but i did everything backwards how old are you i got i'm 28 okay and how much um how much do you make a year uh approximately 60 000 okay and that's what my parents say i think
Starting point is 00:07:40 more money than i realize i think you probably it is more money I realize. I think you probably, it is more money than you realize, but I think you probably have this partially right. I wouldn't disagree with you that you need new living quarters, but I don't necessarily think you need, quote, end quote, the word need in quotes, a home, homeownership today. Like I said, that's mostly an emotional answer. Yeah, it is. My biggest problem is I really need a garage. You've already analyzed that properly.
Starting point is 00:08:04 So, yeah, go find something and rent as cheap as you can and get yourself out of debt. You're going to do that in under a year now that you're getting your now that you're kind of woke up and ready to go. OK, because you're making enough to make enough to pay off all these friends and then finish your emergency fund and then save up your down payment. If you buy a home with all this debt, it's not going to be a blessing. It's going to be a curse. And you're going to be acting emotionally. And you and I both know that when we act emotionally with big money decisions, they're usually stupid. And you're getting ready to do something stupid here.
Starting point is 00:08:36 Don't do it. Go get you something cheap to rent. Get yourself out of debt. Save your down payment. Then buy a house. It'll be a blessing and not a curse. 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.
Starting point is 00:09:21 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. Coming up at the bottom of the hour, to answer your questions, Ramsey personality, Anthony O'Neill.
Starting point is 00:10:13 If you've got any questions for Anthony regarding teens and money and college students and money, we're going to be talking about the new Teen Entrepreneur Toolbox that is quite the hit and other things that are going on with Mr. Anthony. He's speaking all over America. He and I are. So we'll have him on at the bottom of the hour. If you have questions for him, the phone number is 888-825-5225. In the lobby of Ramsey Solutions, Jessie is with us. Hi, Jessie. How are you? Hi, Dave. I'm fabulous. Good. Welcome, welcome. Where do you live?
Starting point is 00:10:42 I live in Philadelphia. Good. Well, welcome. Where do you live? I live in Philadelphia. Good. Well, welcome to Nashville. Thank you. And today would be a good day to avoid Philadelphia for Nashville, given that it's getting colder and crud up there, I saw. Oh, yes. I'm not looking forward to that weather. Yeah, it's getting ready to hit.
Starting point is 00:10:55 So, all the way down here to do your debt-free scream. Yes, I was in Florida for work, so it was kind of a pit stop on the way back home. Perfect. Good. And how much have you paid off? I paid off $65,000. Good. And how long did this take?
Starting point is 00:11:09 25 months. Good for you. And your range of income during that two years? I work and earn commission only. So in the beginning, I was earning between $39,000 to $49,000, and then I was able to increase that up to about $100,000. Good for you. What do you sell? Vacations. And you're obviously good at it. to $49,000, and then I was able to increase that up to about $100,000. Good for you.
Starting point is 00:11:26 What do you sell? Vacations. And you're obviously good at it. Yeah. Congratulations. Well done. Very good job. And so what kind of debt was the $65,000?
Starting point is 00:11:37 Mostly student loans. It was $45,000 in student loans. About half of that was private, and half of it was federal. And then I had $10,000 for my vehicle and $10,000 in credit card debt. Okay. And when did you graduate from school? 2010. Okay.
Starting point is 00:11:54 So eight years ago. But two years ago, something happened. What happened? So I became kind of the face of student loan debt, Dave. I was on a show or on a YouTube channel with Consumer Reports, and they did a documentary about student loan in America, and they featured me. And I had gotten so much feedback and comments,
Starting point is 00:12:17 and everybody was telling me, you need Dave Ramsey, girl. You need Dave. You're like, who is this? I had never heard of you, Dave. I'm sorry, but I did it so that's bad you got wore out with Dave Ramsey people yeah they everybody was like you need Dave really bad so um I actually started my own channel after that the rich cool aunt the rich cool aunt yeah
Starting point is 00:12:38 I'm not rich but I'm playing on it one day there you go every day all right and then one of my followers actually sent me your book. So I thought that I could never be on a budget because I earned commission only. I didn't think it was possible. I thought that I was good with money because I paid bills on time and that was about it. But after reading the book, then it really inspired me to just get rid of this debt. So when this documentary featured you, did it show you as hopeless and stuck that you weren't going to be able to get out of the debt that was the idea it kind of i mean i had done it the video just to bring awareness to the issue that you know hopefully people won't continue to make the
Starting point is 00:13:15 mistake that i had and so many had but it did kind of make it a little hopeless yeah it's like these poor people are stuck in this debt and there's no way out and society has wronged them right kind of a pitch and instead people come at you and go uh girl you can do this we'll show you how dave ramsey dave ramsey dave ramsey exactly okay cool and some of them aren't nice either they're probably mean oh yeah lots of people on there i bet i bet i get a few of those can you imagine I think I've blocked like 10,000 so far on Twitter. It seems like there's a lot more hateful people on YouTube than anything. Try Twitter. Oh, my gosh.
Starting point is 00:13:53 Well, I'm proud of you. Thank you. Well done. So you went from feeling stuck to running your own channel showing how you do it. Absolutely. I've had people tell me now just talking about my journey and doing my personal journey through the debt that they've now paid off their car. They paid off a student loan. So it's kind of nice.
Starting point is 00:14:13 You're inspiring others. Yeah. Good for you. Very well done. So the cool, rich aunt. Yep. On YouTube. Good.
Starting point is 00:14:20 I'll have to look you up. Thank you. That's fun. Very cool. Very proud of you. Who was your biggest cheerleader outside of your YouTube fans? I would say definitely my mother. She's been in my life forever and just always cheering me on, always there for me.
Starting point is 00:14:37 And she's done so much. And she really wanted to be able to help me with the debt in any way. And she was never able to pay it for me, but she was just always there telling me I could do anything. You've got to have people like that that believe in you. It's just necessary. Absolutely. Well done. Cool.
Starting point is 00:14:53 How does it feel now that you don't have any payments? It feels kind of crazy. I mean, I can't believe that just in two years that I'm here talking to you now being debt-free. Two years after the Hopeless documentary. Yeah. And so do you think your income went up because you were striving towards this goal? I think so. You know, it is crazy.
Starting point is 00:15:12 I think you've mentioned it before that, you know, it's funny how once you get on a plan, you are able to handle more and then God gives you more. And I truly believe that's what happened to me. If I had gotten that type of income before I was on this plan i would have been on vacations i would have been buying you know all types of stuff and and having more debt probably yeah well you're in temptation city because you're in the vacation business all right it's right there in front of you all day long and i was always traveling and that was one of my biggest things i knew if i was going to stick to this plan i need to cut out a hundred percent and it just so happened that the promotion I got at work included a lot of travel that they paid for.
Starting point is 00:15:49 Ding, ding. I love it. There you go. You got the travel and the extra income. Yeah, absolutely. Well done. Life is good. So what do you tell people the key to getting out of debt is?
Starting point is 00:15:59 You're a rock star. You did it. The key is definitely just sticking to your plan. The cash envelopes absolutely they help um and just kind of doing those daily little activities or little things that you need to do to get to the end goal i'm curious not because it's me personally but the whole idea that we teach around here about money um what was it out of that stuff that when people start coming at you, you go, you've got to fund new rooms, meaning you need to learn this stuff.
Starting point is 00:16:30 It's not me personally, but you need the stuff we teach. What out of those things was the thing that caused you to turn it from I'm stuck to I can do it? I think just the way that you had kind of laid it out in your book with the total money makeover, that it was very simple. I always thought budgets were complicated, that it was impossible, but it's such basic information. It's kind of amazing that we're really not taught this at a very early age and having it pounded into our heads to live that way and not the normal way. So I would say that that was what helped me. Cool. Just the fact that it was so easy.
Starting point is 00:17:10 A clear, simple plan. Right, exactly. Okay, all right, good. That's helpful. Thank you. Very good. Very well done. Thank you.
Starting point is 00:17:17 Way to go. Well, we got a copy of Chris Hogan's book for you, Everyday Millionaires. You're going to be one. You're going to be the rich cool ant. You got the cool part down. Now we just got to make the rich happen, right? I like it. Very cool. Good job. All right.
Starting point is 00:17:32 Jesse from Philadelphia. $65,000 paid off in 25 months. Making $39,000 up to $100,000. Count it down. Let's hear a debt-free scream. Three, two, one. I'm debt-free scream three two one i'm dead i love it i love it i love it i love it i love it well done well done i'm so proud of you good job
Starting point is 00:17:59 really really good job okay note that just that's the second time that's come up recently. Note, if you're one of the people that follows the stuff that we do, thank you. Don't be mean to people that aren't following our stuff and use my name. The number of you that are trashing federal workers when they were during the shutdown, Dave Ramsey, Dave Ramsey, these stupid federal workers, they need Dave Ramsey, and you are just being meaner than crap to people,
Starting point is 00:18:35 and you are using my name to do it, stop it. That is not helpful. It is not hopeful, and it does not promote healing. Yes, every worker in America federal, Ramsey worker worker for Bridgestone worker for Nissan
Starting point is 00:18:57 every worker ought to save an emergency fund and every worker can but you don't need to be mean to them if they didn't. Now, I'm not going to tolerate their victim language and that they're stuck and all that. I'll help them and bust them up out of that. And you can, too. But you don't need to be nasty to these people because your politics liked the shutdown.
Starting point is 00:19:20 Some of you people need to get, you really need to grow up and be a little nicer. And quit using my name if you're not. This is the Dave Ramsey Show. I had a conversation with a friend recently, and he told me about a young man in his late 20s who died suddenly with no life insurance. Now, I don't want to sound unsympathetic, but this drives me crazy. What are people thinking? I don't understand how taking care of your family isn't a top priority. Most of you probably just spent a bundle on Christmas on
Starting point is 00:20:12 things you didn't really need, and now you're making New Year's resolutions that are focused on yourself. But have you taken the time to do something really important like protect your family? If you want to use the New Year as a reason for doing something right, then do it. Term life insurance is something every family needs, and that's why I talk about it every day. It's not complicated, it's not expensive, and you need to do this right now. Zander Insurance is the only place I recommend.
Starting point is 00:20:39 Visit Zander.com or call them at 800-356-4282 please learn from other people's mistakes and get this taken care of zander.com Ramsey Personality, Anthony O'Neill, joins us this half hour. He is a millennial expert, a teen expert, speaks to hundreds and hundreds of high schools, tens of thousands of high school students and college students every year and in churches all over America and has produced several bestsellers, including in the book world, The Graduate Survival Guide that he and Rachel Cruz did together, The Graduate Survival Guide for Graduating High School Seniors, Five Mistakes You Can't Afford to Make in College, a bestseller,
Starting point is 00:21:42 and has produced that and all kinds of other things. The new Smart Parenting event with Meg Meeker and the Smart Money events that he and I and Rachel and I are doing this spring. Rachel and he are doing this spring together. So you've got a bunch of those lined up. You're busy, man. Dave, I'm loving it, man. We're out here changing people's lives and traveling the world. The month of February is going to be busy for all of us.
Starting point is 00:22:07 Yeah, we're all excited about that. We're all pedal to the metal. Hogan comes back off a tour and shuts down, and we go into high gear. Let's go. That's it. It's game on. I love it. Good stuff.
Starting point is 00:22:17 All right, let's check with Doug in Las Vegas. Hey, Doug, your question for Anthony and me. Hi, Dave. Long-time listener, first-time caller. Well, thank you, me. Hi, Dave. Long-time listener, first-time caller. Well, thank you, sir. Yeah, thanks. So I was about three to four years out from retirement, and I got laid off. And I've got a house that I owe about $190,000 on,
Starting point is 00:22:40 but I've got two rental properties that one's worth about $250,000 and one's worth about $150,000 and one's worth about $150,000. And I only owe about $40,000 on the two of them. My question is, should I sell one of those or both of those to pay off my personal loan? How old are you? 55. What were you making before? I had $100,000.
Starting point is 00:23:04 Why would you not get another job? Pardon. Why will you not get another job? Pardon? Why would you not get another job? I will. I could immediately get back into something probably around 60, but I'm not sure I can get back into something right at 90 immediately. Mm-hmm. Okay.
Starting point is 00:23:21 So that was my question, and I'm going to get a severance of about 90. Oh. It'll carry me probably through the majority of the year. Why do you need to be carried? Well, that's true. If you get a new job, this is a signing bonus. Right, right. What are you thinking, Anthony?
Starting point is 00:23:43 Yeah, you know, I'm thinking like you, Dave. Get a job. Use this money that you're getting from your severance to take care of this mortgage. But I'm getting a job, Dave, and I'm actually going to shoot for right around $80,000 or $90,000. I think with his expertise, he can get there. Yeah. Okay. The thing is this.
Starting point is 00:24:00 There's no law that says you have to take a job making less. As a matter of fact, there's a law that says you should take a job making more when you leave a job. And so I'd love for this story to be, let's go back to right before you got laid off, right before you knew you were going to be laid off, okay? Well, your plan was to use the $90,000 or $100,000 a year for the next four or five years or eight years to become 100% debt-free going into retirement and keep all these properties, wasn't it? Yes.
Starting point is 00:24:28 Let's just do that plan. I like that, Dave. You start working again, and whether you take a 60 or whether you take a 160 income, and you take this 90 and you throw it at maybe knock out that little 40, it's done. So the two rental properties are completely clear. Throw the other 50 at the thing. You've got no other debt, right's done. So the two rental properties are completely clear. Throw the other $50,000 at the thing. You've got no other debt, right? Right.
Starting point is 00:24:47 No. You've got your emergency fund, right? Yep, I do. Good, good. How much is in your 401k? About $190,000. Okay, so you're on your way. Yeah.
Starting point is 00:24:57 You're on your way. You just hit a bump in the road. Yeah, I'm only a week away, I mean a week week from it so i was just slightly in panic mode sure sure well what normally happens is you do have that you feel devalued you don't feel that there's a grieving process there's a period of time you're pissed off you know there's a little bit of those things you go through because you work for these people for a while yeah it is 19 years yeah and then boom, man. I mean, that's almost like going through a divorce in a way, right?
Starting point is 00:25:29 Right. And so the emotions of that are real and they're human. But let's just pretend that you divorced an ugly woman. You're going to marry a pretty one. You're right, man. Why can't life get better? Why does it have to get worse? Come on, Dave. And I was just thinking worst case you know if i immediately had to get into something i know i
Starting point is 00:25:50 could get in but you're right if i i've got i've got a little time on this and i i know i can get back in yeah don't don't panic and take a job making 30 there's no panic if you use a little bit of your 90 but don't just ride the 90 all the way into the dirt let's get something going and you know the whole thing is just about the attitude and the altitude you're at and that's to say hey this is not bad as a matter of fact i'm probably gonna do something i never would have done that's awesome if they hadn't kicked me out of the nest i may fly higher than I've ever flown. And that's a very real thing. That's not just pump up, fluff, positive thinking.
Starting point is 00:26:30 There just is. You've got all this experience. You've got all this background. And if you just think about it differently, there's a real shot at you making more money, not less money. And so, you know, the stuff that Ken Coleman works with career all the time, Anthony, and the stuff that you work with with teens and me working with people with money, it all collided right there at the same time in a sense. There is, yes, we have limitations.
Starting point is 00:26:57 Okay, I'm 58. I'm short. The chances of me making it in the NBA are zero. Okay? My basketball skills are zero. Negative zero. Negative zero. Thank negative zero thank you thank you for that anthony thanks for that rooting me on but so the point is the power of positive
Starting point is 00:27:10 thinking is is bull yeah if you if it's not combined as ken talks about with reality but what happens to normal humans is when we get smacked yeah we feel the pain yeah and you know i've been through this illness i've been through this illness. I've been through this divorce. Yeah, I've been through this hard time with my family. I've been through this job loss. Yeah. And we automatically it's human nature to have that that kind of cloud over us. It makes us think we're not going to win.
Starting point is 00:27:38 Yeah, it does. And I remember when I was homeless and that hit me. I was like, OK, I'm homeless. I can't bounce back from this. I can't do this. I can't go there. And it was that negative thought that I was like, you know what? I need to get out of that. Yes, I can use this as a learning experience and move forward. You know, Doug represents a lot of people out there who are unfortunately losing their jobs, but I believe it's a blessing in disguise. If you take it, learn from your experiences before then,
Starting point is 00:28:08 and then you move into your future saying, you know what, I'm going to be better. I love that analogy you gave of you're divorcing an ugly woman for a beautiful woman. And I think you can have a beautiful future if you just really adapt and adjust where you are and just move forward with good thinking, but also match your skills. Yeah. For you ladies, it would be a man. Just say, you know, you're divorcing an ugly man. Either way, it doesn't matter. The point is, though, that we're going to be given lemons. Yes.
Starting point is 00:28:33 And as my friend David Ring says, he says, we've got to get really good at making lemonade. Yes, sir. And there's something that happens out of this. And after 19 years, the chances of him leaving that job voluntarily are almost zero. God may have been whispering in his ear saying, to go i got something better for you much better i got something better for you i got this yeah and you got to hear that whisper but it's hard when you've been feel rejected yes and betrayed and hurt yeah after 19 years that's just that's tough tough stuff right there anthony O'Neill is doing the Smart
Starting point is 00:29:05 Parenting event in Sacramento and Minneapolis in May with Dr. Meg Meeker. And I'm talking to you parents of any children of any ages, showing you how to communicate with them, how to work with them. He'll be doing a Smart Money event next week in February the
Starting point is 00:29:22 5th, or week after next, I guess it is, in Raleigh, North Carolina with Rachel. And then he and I will be February the 20th in Grand Rapids, Michigan. Rachel and Anthony in Cincinnati. Smart Money event February the 21st. Atlanta is Anthony and me March the 14th. So it is game on with the Smart Money events, and that's all February and March. And then May, you're going to be booming out with the Smart Parent events.
Starting point is 00:29:46 With Meg, you're going to be all over the place, man. I am, Dave. And this Smart Parent event, I want to encourage any parents of any ages. I don't care if you have one from 1 all the way up to 21 in college. I really want to see you out there. I can't really say how the event's going to be looking, Dave, but our team has been working hard. And we have some surprises that this event is going to be absolutely amazing for any parent. Yeah, good stuff.
Starting point is 00:30:09 Very good stuff. Check it all out at anthonyoneal.com or davramsey.com slash events. You can get your tickets for any of those events that we mentioned, plus many, many other things going on around here. This is The Dave Ramsey Show. We'll be right back. Thanks for joining us, America. We're glad you're here. Anthony O'Neill joins us this half hour. You can follow him at Anthony O'Neill on YouTube, Instagram, Facebook. He's a little bit busy on his Instagram and Facebook.
Starting point is 00:31:23 I mean, Instagram and YouTube, I mean. And anthonyoneill.com is the website. Yeah, I don't know if anybody I follow posts more live Instagrams than you. I mean, is there anything you don't put on there? Hey, Dave, you know, I'm a millennial, so, you know. You're communicating with teens. Hey, yes, sir. Your entire workout regime every morning is on there.
Starting point is 00:31:44 Hey, you know what? I'm trying to get this younger generation healthy you're busting it in the gym and those of us that follow you know every detail i love it it's inspiring yes sir all right erica is in chicago hey erica your question for anthony and me hi guys Thanks for taking my call. My question is, when should I buy another car and how much to save for that car? I'm in baby step number six. My current car is 10 years old with 93,000 miles. Good condition. I have about $1,500 left at the end of the month after investing, of course, to either pitch to the house or
Starting point is 00:32:26 save for the fund. So just kind of want your thoughts on that. What's your household income? $71,000. Okay. And I know it's kind of early, but I got to ask, how old are you, Erica? Sure. I'm 28.
Starting point is 00:32:40 Man, you're winning. You're winning. So tell me this real quickly. Why do you want to buy a car? I mean, you're driving a 10-year-old car. You said it's running real good. I'm also driving an 11-year-old car, and it's driving real good with over 200,000 miles on it. But it doesn't sound like you need it.
Starting point is 00:32:55 Do you just desire it right now? No, not at all. And you're right. I don't need it. It's just I'm trying to be proactive and just kind of plan to see how much I should be saving in order to have this fully funded before it starts breaking down and, you know, just kind of the wear and tear on the car. I don't know. I guess I'm just nervous that, you know, God forbid something happens to the car and I have to put forth money that, you know, I could have just kind of gotten a newer car, I guess. I don't want brand new, of course, you know,
Starting point is 00:33:29 with what Dave says about not having a million-dollar net worth. But, yeah, I just kind of wanted your thoughts on that. Yeah, well, Erica, here's the first thing. You're on baby step number six, so this means that you have three to six months of expenses already saved up. So that means you're already prepared for if the car has an emergency, if something comes up, you'll be able to get to that. So let's not stress about that.
Starting point is 00:33:49 It sounds like you're stuck between a saving for a car or a house. I'm leaning more towards, hey, start saving for your down payment towards a home. She already got the house. You're talking about paying extra on the house, right? Yeah, I have $1,500 after investing. I've been selling it at the house, but now I'm just kind of second-guessing. Oh, yeah. Well, then I don't have a problem, David, with her saving to go towards a new car down the road.
Starting point is 00:34:09 Yeah, yeah. That's what I would do. Do you know how much I should be spending or how much to save? It's completely up to you. Yeah. The deal is this. At this stage of the game, you're past necessity, and you're up to want when it comes to buying a car. You've got the necessity covered.
Starting point is 00:34:24 Yeah. But a reasonable want is to have a little better vehicle than you've got today. Okay? That's a reasonable want for someone that's done as well as you've done. You're 28 years old. You've saved money like a crazy person. You're completely debt-free. You're making good money.
Starting point is 00:34:38 Way to go. You killed it. And, of course, you know our guideline. Don't buy a car more than half your annual income. You're not talking about anything like that i'm sure so what if you save for 10 months and put 15 000 aside and just let it sit there and say then i'm going to take off on the house again start paying extra on the house again and then you know whenever you just our urge is later on a year two years i don't care you decide you want to sell that car you can sell it and you got you've got $15,000 sitting there any time you want to do it.
Starting point is 00:35:06 You don't have to go buy a car the day you get the $15,000. But you could just kind of go, I'm going to set that aside and just put it over there in the air market. Because someday I am going to need another car. Yes. And I can either buy it now or I can buy it later. I can take my time, start thinking about it. There's no rush. And then if this thing starts giving you fits and it becomes really inconvenient,
Starting point is 00:35:24 then it's time to just dump it and get you a better one, you know, that kind of thing. But that's the kind of range I would probably be in just listening to you. Does that feel uncomfortable to you either way? Yeah, it does a little bit. I don't know, $15,000 is not what I was expecting you to say, just being a long-time listener. Yeah, did you think I was going to say cheaper or more? Yeah, yeah, I did, honestly. Okay. Yeah, I did. I was thinking more like $10,000. Okay, if you want to do that, that's okay. I don't care. My current car with the private sale on Kelly Blue Book says it's
Starting point is 00:35:56 about $7,000, so should I be factoring that into the $15,000, or like what happens if I don't sell that? If you want to. The point is you're not going to be over 35, so I'm not going to care because you're not over half your annual income. You're not even going to approach that. You're going to be 20 or less is what we're saying. And, you know, that's fine. I was thinking total price of 15. I was thinking your car is going to be worth nothing by the time you got around to this.
Starting point is 00:36:19 So maybe your car enters into this. I don't care. But anywhere in that 10 to 20 range i think is going to be very comfortable it's definitely conservative a lot of people would be the stupid people would be double triple that right and i'd have to be talking them out of it uh you're not that person but i don't want you to cheap out either because you know you're a single lady you want something super reliable you've earned the right to drive a decent vehicle by managing your money well. And there is no shame in that.
Starting point is 00:36:49 And that is consistent with what I say here on the air. I just don't get to take calls from people as smart as you very often. You know what, Dave? Here's the funny thing. I get that question asked all the time. Like, hey, you're a Dave Ramsey guy. Would Dave get upset if I bought a $20,000 cash car and my income is $ car and my income is eighty thousand i'm like no i mean he wants you to have nice things if you are living by the baby steps and we want you to be comfortable and where you are but
Starting point is 00:37:14 you know we want you to to enjoy life you work these baby steps so you can enjoy life um and that's that's so good and i thank you for saying that, Dave, because I think a lot of people need to hear you say that. Well, I don't drive a $1,000 car. Yes, sir. And I don't recommend that people that, you know, once you get, you've lived like no one else. You're an everyday millionaire. That's right. Get you some nice cars.
Starting point is 00:37:35 Give me a nice car, Dave. I guess so. Well, you're probably due to move up. I don't know if you're keeping out here. Look at you. I'm going to have to help you go car shopping. No, you're you'll stay right here chandler is chandler is in bangor maine hey chandler your question for anthony
Starting point is 00:37:52 yeah so uh just had a question so i guess this what's the advice for a 22 year old that has paid for everything out of pocket no loans zero credit look at. Doing my master's. Um, but again, I'm trying to propel, like propel myself, uh, into this highly competitive world. Um, and, uh, I mean, I don't have a large income, but it's definitely enough to live off of. Um, and just wondering, uh, what I, what I have to do. I know I've listened to your stuff, Dave, about, uh, working with a bank to manual underwrite and all that, but I'm just wondering what I need to do to do well in my mid-20s. So you're talking about a house? You said manual underwriting. You're talking about buying a house?
Starting point is 00:38:33 Yeah. So I mean, I guess my long-term goal is to be able to own a house at some point and not have to pay for rent and be able to have some equity. That'd be fun. Okay. And what are your masters you're studying? The masters, it's an MBA, but it's uh masters in athletic administration okay fun man you're winning i work in collegiate athletics right now so you're winning man i just want america to hear this a 22 year old is doing this thing the right way um but channel man i like where you are right now here's my suggestion for you finish school uh don't be in a rush to buy a house right now, but it sounds like you're winning in that area. And I'll just start stacking away.
Starting point is 00:39:09 Get your three to six months of expenses set aside. And then, man, I have no problem with you starting to save a little bit to get towards that 10% to 20% down to avoid your PMI. But you're already ahead of the game. I wish I could have talked to you when i was 22 years old um moving is expensive and selling a home that you own is a costly endeavor how stable are you in your college athletics thing are you going to stay there for sure are you going to be moving um so it's obviously a rotating door with collegiate athletics but i have have a decent thing going here right now. I've moved up pretty fast in my company at the University of Maine, actually.
Starting point is 00:39:50 And so I think that I have a decent amount of time here, so I think I could set some things down, put some claws in the ground for a little while. Well, like Anthony said, once you finish your degree and you've got your emergency fund, you save a good strong down payment, there's nothing wrong with that. Your age does not prohibit you from buying. It's the things you're facing in your life overall. And you don't want to buy and then turn around two years later and get a better job. That's going to get expensive in late May.
Starting point is 00:40:18 You don't want to do that. Anthony O'Neill, thanks for stopping by. Dave Ramsey, America. Thanks for having me. Anthony O'Neill, Ramsey Personality. Check out all the Smart Money events in February and in March. Anthony O'Neill, thanks for stopping by. Dave Ramsey, America. Thanks for having me. Anthony O'Neill, Ramsey Personality. Check out all the Smart Money events in February and in March and the Smart Parent events in May, all with Anthony. This is The Dave Ramsey Show.
Starting point is 00:40:50 This is James Childs, producer of The Dave Ramsey Show. Once again, you made The Dave Ramsey Show one of the top five most downloaded podcasts last year. To get your daily dose of motivation and inspiration, subscribe today.

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