The Ramsey Show - App - DAVE RANT: Your Bank Is Completely Incompetent! (Hour 3)

Episode Date: March 21, 2022

Dave Ramsey & Ken Coleman discuss: Digging your way out of a deep hole of debt, What to do when your stupid bank can't find the car title, How to deal with bad finance professors, When to pause retirement. Want a plan for your money? Find out where to start: https://bit.ly/3nInETX Listen to all The Ramsey Network podcasts: https://bit.ly/3GxiXm6

Live from the headquarters of Ramsey Solutions, it's the 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. Ken Coleman, Ramsey Personality, is my co-host. As we talk about your jobs, your career, your money, your mental wellness, and your relationships. All right here on The Ramsey Show. Thank you for joining us.

Debbie starts off this hour in New York City. Hi, Debbie. Welcome to The Ramsey Show. Hi, Dave. Hey, what's up? Hi, I hope you're doing well. I am. How are you?

I'm okay. I'm okay. So, my question. I know that I'm very new, but I've already closed six credit card accounts. Good for you. And, yeah. And I have a question, although it's a little far in the future, considering where I am with my debts, but you say to put the, to do the three to six

a month emergency funds from what I've heard from your show and from reading your books, after you do all your debts other than your mortgage, but I don't have a mortgage because I rent, my husband and I, we rent. And so my largest debt is a $93,500 student loan. And I'm kind of, my other debts, all together, the debts are like almost $190,000. Besides when everybody just cut up. Anyway, so my question is, I'm just concerned that it'll take me, that I'll never get to the emergency fund or it'll take way too long if I do the student loan before I do the emergency fund.

My husband, you know, his income isn't 100% steady because he's self-employed. What do you guys make a year? My income is all taken up on my debts. What do you make a year? Household income. I actually looked it up. Last year, I made $106,238. What did he make? That I don't know exactly.

I just, his income really varies. It's less than mine right now. It used to be more. He has a steady $30,000, and then it goes up and down depending upon how much work he has. What does he do? He's an electrician. Why is he not covered up in work? He's 84 years old.

Well, there's that. My husband's a lot older than me. Okay. So he's 84. So he doesn't really do the work himself. And he just, you know, backs up other people, basically. And so. So how old are you? So he doesn't like, you know, so he just gets like a small fee, you know. So how old are you? 59. Okay, cool. All right, good for you. Well, I'm glad you're attacking this.

And in general, there's a power to focus. So you've got $130,000 plus or minus income to attack almost $200,000 in debt. Yeah. Ouch. What was your student loan for? Nursing, and first the two loans, the original nursing degree, then I, this would be my stupid, I went for the master's, but I did it as a bridge program because I had a bachelor's.

So now the master's did me bupkis. Everyone wanted me to have the BSN, but my bachelor it as a bridge program because I had a bachelor's. So now the master's did me bupkis. No, everyone wanted me to have the BSN, but my bachelor's isn't another thing. So I feel, I saw I'm going to have a borrower's defense case now for that part of, for that part of loan, I have a borrower's defense case active. And right now I'm in forbearance because of that. And even when everyone else has to pay back their loans because of the pandemic freeze is ending, I still don't have to pay until they decide my case. So right now, I'm not even focusing on that at the moment. And I don't know if I'll win or not. And if I do, I'll still have for the original degree. So you are a nurse today? Yeah, I'm a school nurse. I mean, I used to have an RN, but I work in a school.

Okay. All right. I have a quick question on that, Dave. Are you maxed out with the degree you have and experience you have as a nurse? Are you maxed out, or could you make more than the 106? I tried to get back in the hospital, and no one would even interview me. I didn't ask you that. I'm just saying, are you maxed out in the marketplace?

Is there something else you can do with an RN that makes you more than you make now? Not that I'm aware of. I'm an NP, but I couldn't do that because I don't have the experience in anything that you can get an NP in because I spent most of my time in the school. So I can't go for a postgraduate certificate program as a nurse practitioner because of that. And I also work for my husband's business at night. You know, it's like I work all day at the school. Listen, his business doesn't make enough money that you have to work for it much.

Yeah, well, sometimes it's busy, sometimes it's not. And he also doesn't even know how to turn on a computer, so I have to do everything computer-related, even his emails. Like, you know, some people owe me emails. I have to go through all the emails. Yeah, but if all of that's making you $5, it's not worth it. You might hire somebody to do that. It'd be cheaper if you could make more money doing something else. So don't get caught in that.

So the answer to your overall question is uh you have a really high i mean you're in a pretty deep hole with a medium-sized shovel and that's what we always call it the shovel to hole ratio what's the ratio of your income to the debt and you have 130 to 150 thousand dollar household income with 200 000 in debt and so if we paid uh 50 000 a year on it it takes four years if we pay 75 000 a year on it it takes three years and that means that you're living on beans and rice rice and beans you're living on nothing scorched earth below nothing in new york city to be able to pull that off and that's why we're scratching around here because if we can add 20 or 50 000 to this equation on income it gets you out of debt a bazillion times faster and whether or not to save for the emergency fund is

really not going to be your problem your problem is you have got to for the first time in your life address this ridiculous debt situation because it's spiraled out of control on you and so i mean we can argue about or discuss the theories of baby step one being a thousand dollars or do you move baby step three ahead but none of that changes the fact that you have two hundred thousand dollars in debt and you've still got to address that and so you know if you say, I'm going to save $10,000 for a little emergency fund before I move on to my student loan, fine, go ahead and do that.

But it doesn't address the issue. The issue is you've got to do something pretty radical and begin to attack this debt at a level you have never considered before. And that's what we're outlining is this intensity and this level of sacrifice to be able to be free and be clear because the last thing i want you to be is 10 years older and still sitting here and he's gone and he's gone to heaven you know i that's not what i want for you and so i want you to have a better life than that and it's going to involve some you know it's a big mess

so it's going to involve some big changes and some big sacrifice to get there it's not a little mess so I'm honored to have you in my audience thank you for calling Debbie I know it's scary and I want you to feel free to call us anytime we'll always help you

you keep fighting it I think you can do it but buddy I mean you've feel free to call us anytime. We'll always help you. You keep fighting it. I think you can do it. But, buddy, I mean, you've got a mountain to climb, girlfriend. This is the important than ever. While some circumstances can't be controlled, there are items within your budget you can take charge of, such as your health care costs. For nearly 40 years, Christian Health Care Ministries, or CHM, has provided a budget-friendly means of sharing for medical bills when our members need it. Learn more by visiting chministries.org slash budget. That's chministries.org slash budget.

Christian Healthcare Ministries is a Ramsey Trusted Provider. Well, it's been a long time. As a matter of fact, as far as we're concerned around Ramsey, way too long since we've been able to talk about and do our live events. And we are doing real live events with people in them and everything. And when you come to an event with us, you're going to spend the whole day digging into all areas of your life money personal growth leadership mental wellness your career all of it it's called the smart conference you're going to leave hyped up ready to make real change we love doing the day-long smart conference it's all the ramsey personalities plus this year

our good friends craig and amy groschel from life church are coming to do a section on marriage and oh my goodness this is incredible you got it smart conference is back it's been three years we're pumped we're going to be in dallas october the 22nd on saturday all day long when you leave at the end of the day you will be smart you gotta love it it's our biggest event of the year you don't want to miss this jam-packed event rachel cruz dr john deloney our own ken coleman christina ellis pedro latore of course well where is george camel areas george camel's on here oh i'm I'm going to be there. Yeah.

And as I said, Greg and Amy Groeschel. It's pretty incredible. Tickets start at just $39. It's a great price for a full day of smart. Get your tickets right now before they sell out. They are selling very quickly. You know all these live events and concerts. Anything that's happening in mass right now is selling like crazy.

All of our stuff is going really, really fast. We've got an Orlando wealth building event up for sale right now. Ken Coleman and John Deloney are going to come to that as well. Be signing books afterwards during everything else. We're going to be out in the lobby seeing you guys. We miss being with you in all these cities. And so we love being on the road and being out there with the peoples. So come out, guys, RamseySolutions.com slash events for the Smart Conference,

October the 22nd, or if you want to do Building Wealth in Orlando, May 19th. It's on the books as well. I'm going to be telling you about more of the Building Wealth events. We're going to do one more of those here in the spring and four more in the fall around the Smart Conference. We're going to do one more of those here in the spring and four more in the fall around the SMART Conference. We're going to be all over the place in cities all across America. You do not want to miss this. The other city might sound like this.

It might sound like Las Vegas, but I can't say that yet. It sounds like it, though. It sounds similar to that. When we had to make the announcement, that's kind of how it was found. And I want to tell people we have a lot of new people joining the show, listening to new listeners. If you've never been to a Ramsey Solutions event, I've got to tell you something. We're not just going to give you practical, hope-filled, transformational content. Can I tell you how much fun we have?

And we really do try and we succeed at letting the audience have fun, not just and learn but we have fun and it's i suspect coming out of the pandemic dave i promise you it's going to be electric i promise you you will laugh every 12 minutes and you will cry at least once every 30 to 40 minutes oh boy there's some i promise you oh and that's just while ken's speaking every 12 minutes that's quite a guarantee there, folks. I just made that up. I know you did. Yeah.

But it's fun. It is fun. And you will leave changed, and you will leave transformed, and it's a blast. Elizabeth is with us in Charlotte, North Carolina. Hi, Elizabeth. How are you? Hi, Dave. My kid.

I'm great. How are y'all? Better than I deserve. I was in your fair city yesterday speaking at Elevation Church with my friend, Pastor Stephen Furtick. It was a blast. How are you? How can I help? Wonderful. Yeah, so I'm doing great, better than I deserve as well. And I've got a problem. My husband and I, we bought a truck and we paid cash for it, but the dealership listed our bank as a lien holder.

So the DMV issued the title and sent it to the bank. So now the DMV says they can't reissue the title without a lien release from the bank. And the bank is saying, well, we don't have a lien to release. And we're kind of going in circles here. How do I get my title back? Well, that's ridiculous. Okay?

Yeah. The dealership can solve this. They can reissue the title. Or your bank can quit being stupid and release a lien that they don't have. All you've got to do is sign the back of the title and say the lien is released. There doesn't have to be an accounting transaction for your bank. Your bank's being an idiot. How do we get the title for the bank to sign the back of it, though?

Where is the title? The title was never issued. That's a good question. Well, if it was issued with a lien holder, it went to the lien holder. It went to the bank. That's what the DMV told us, and the bank is saying they don't have it. Oh, they do. Your bank is incompetent.

Yeah. Who do you bank with, Bank of America or something? Fifth Third. Oh, God. They're awful. Here we go. Well, yeah, they're incompetent for sure. And the dealership.

Sorry, go ahead. No, that's okay. Yeah. So here's the thing. Climb all up in your banker's face and climb all up in this dealership's face. The dealership can reissue the title. Okay. I mean, and for that matter, you can call the state.

What was the state telling you? The state's saying we issued a title. We issued a title. We've done our job, and it had a lien on it. Right. Yeah, they're saying, well, the dealership told us there was a lien, which I'm going, but there wasn't. And the signed purchase paperwork I have does say in all caps

under the lien holder box, none. Yeah, well, there shouldn't be a lien. You pay cash for it. Pretty clear. Yeah. How much was the truck? It was $23,000 and change. Okay. it was 23 000 and change okay well what i'm gonna do is i'm gonna dance on the face of your banker and get their attention and then i'm gonna change banks when this is over because you have a horrible

bank and the other thing is i'm gonna go over the dealer and go guys look i didn't do this you've got my money yeah i don't have a title are Are you going to solve this or am I going to have to have an attorney contact you to solve this? I didn't create this problem. It's not on me to fix it. You created this problem. It's on you to fix it. I just don't know if the problem's not at the DMV, to be honest with you. If they're saying there's a thing. The DMV is saying that the dealer told them there was a lien. Yeah, but that's not adding up. I've got to tell you, that's where I start.

The dealer's incompetent. The dealer has to fix it. The finance office at the dealership got sloppy. That's right. They made a mistake, and instead of going and fixing their mistake, they're running around acting like this is Elizabeth's problem. So I'm going to make it some other people's problems, and you're going to have to keep her.

You've got $26,000 on the line. You've got to get a title. Yeah. I mean, this is You got $26,000 on the line. You got to get a title. Yeah. I mean, this is like losing $26,000. Like you lost $26,000 of my money. You probably need to find it. Yeah. So it sounds like the dealership could fix it,

which may be a better route than the bank just because the bank is such a big bank. Maybe the dealership... I agree. I think it's the dealer, Dave, that needs to fix it, because that's just what they do. That's the whole part of buying it. This is the problem with dealing with someone like Fifth Third or Bank of America.

They're so big, and they're so stupid, and they don't care. Yeah. A normal bank that cared could fix this. Because there's no harm to the bank whatsoever on releasing the lien on the back of the title and releasing it back to you even though there was never any lien they don't have to do an accounting entry some dober called a banker needs to get the title out of the box sign the back of it and send it to you it's that simple and the whole thing's over but you got to find somebody with a brain at fifth

third bank good luck with that. I mean, that's the problem. That's why I tell people not to bank with these banks like this. We bank with smaller community banks, regional banks, and credit unions. This is the only time I tell people to bank with people because you can actually find a human being that A, cares, and B, has two brain cells.

Because if you had three brain cells, you would have quit your job if you were at Fifth Third and gone and gotten a good job you know but no you're staying there it means you hadn't listened to ken coleman show and gone and gotten a good job you know this is like the start of a bad joke a car dealer a banker and a dmv staffer walk into a bar into a car and between the three of them can't find a brain cell. This is the triangulation of incompetence. Bless her heart. That's what she's stuck in. The triangulation

of incompetence. You are in the Bermuda Triangle of incompetence. The DMV, a banker and a car dealer. This is the Ramsey Show. We'll see you next time. Thank you for joining us, America. We're glad you're here. Open phones at 888-825-5255. So the social media team just told me that the Instagram account, which I didn't even know existed for a long time,

when Instagram first came out, I didn't even know how to do it because I was on Twitter. Remember when Twitter was a big deal back when everybody was on Twitter? Yeah. Yeah, I was on Twitter, and I had like 100,000 people on Twitter. I thought I was a big deal. And then I got to like 500,000 on Twitter, and I just knew it was a big deal then i'm joking yes because twitter does not define you i can promise you that and then twitter just started to deteriorate yeah and it's all trolls now it's a total jungle it's a it's a it's like all the mental illness on parade yeah i

mean it's just crazy it's lost very bitter people bitter angry it's really the it's it's the it's the black hole of social media and so um anyway so then i i just got off of twitter i mean we have a twitter account with my name on it's got about a million now just under a million and uh the guys all they put stuff on there but it's all hate all the responses hate i could put on their free hundred dollar bills and somebody would go that's not enough that's right where's mine you should for a fun example you should tweet the sun is hot and then wait for people to disagree with you on that yeah well yeah no well i mean and it's uh trump's fault right you know or i mean they just say some dumb butt stuff on there so uh i was not

paying attention to instagram and it got up you know like a million half two million people or something on there and uh so our instagram people are like dave you need to respect instagram because it's legitimate the gram is great the gram the gram oh like you're like you you and the gram are tight that was a you have a nickname for it this was an attempt for me to be relevant oh my god as soon as it came out of my mouth i just went that was a i regret saying this already before i even finished it it's like i always tell my kids i say check it out on the google and at your attention oh i do that on purpose it's just like a bad dad joke have you got that internet thing yeah so where you got big news

well yeah so apparently the gram i'm now i'm now three million people on the gram? Apparently the gram, I'm now 3 million people on the gram. Oh, congratulations. Slow clap for that. Yeah, slow clap. It's like a nice par putt. Golf clap. Solid par putt there. Yeah, but the, so. At Dave Ramsey, by the way. I don't want to be real sarcastic or anything, but I'm supposed to like.

That's nice. Are we supposed to celebrate? I'm going to be nice. I'm just going to say that's very nice. Thank you for to celebrate i'm gonna be nice i'm just gonna say that's very nice thank you for all of you that are out there we know we've got about 20 to 25 million of you on this show out there and uh three million of you on the gram i didn't even know it's called this well yeah this is what the kids call it's what it's what oh really do they are you just made that up you don't 47 i don't. You don't have any idea what cool is.

They don't even tell me. You and I together couldn't find cool in a bucket. Hey, but here's the point. You should be following Dave Ramsey on Instagram because it's good content. And Ken Coleman. While you're at it, give me a follow. Apparently somebody cares. So there you go. There really is great content out there.

Well, it is. And we don't. I mean, but there's a few haters showing up on the ground when the grand first came out dave it was like nice people and it was all the irony of social media is that it's not very social it thinks people can be downright mean you mean those people on facebook aren't really my friends ken i don't mean they're not really my friends not until you say they are until you say something that they don't like and then you'll find out it's over it's a little different it's like that relationship was shallow didn't last long we broke up my favorite the old days is

what someone would tell you uh unfollowed and as if you cared yeah well and i would just went back and and when did i start taking a poll but i actually may hold the record for the most people blocked on twitter oh you think so it's become like a thing with the kids to get blocked by me oh so i quit doing it finally because it became like i haven't been blocked by dave ramsey i must not be cool we should check the stats i'm i'm guessing it's over 10 000 i blocked because I used to just sit in the mornings and block them. But now there's nobody left to not block. So you could just close the account easier.

Yeah. Because they're, man, I tell you, the number of people that are intelligent on Twitter is so low. It's so small. So they're just mean and mad. It's scary. Anyway, it's fun. This social media thing. And it's kind of all collapsing, though.

I mean, it's being shown up to be as fake as it is. Everybody's kind of figuring it out. They're going like, those people on Facebook aren't really my friends. And then Facebook starts throttling stuff and charging for everything. And everybody's pissed off at Zuckerberg. And the gram is owned by Facebook. Now you've got me calling it the gram. It's not even a thing to call it the gram. Which may be one of my greatest professional achievements.

It's up there you and i could work together for the rest of our lives and not cause that to be a thing so uh all right mikey is with us get us out of this mikey he's in indiana how can we help hello how are you good how are you pretty good. I'm a junior at Indiana State. I'm managing a business, changing the mind, entrepreneurship. Cool. Good for you. Yeah. I want to start my own business. I'm taking a finance class right now that we are learning real estate and how to manage

money. But I'm struggling with what my professors teach us because it goes against the deaf free principles that I believe in and learned in financial peace class in high school. Like for example, some of the things that he says is that we should use credit cards for everything. Sure.

So you get money back and can't rent a car or hotel or buy airline tickets with a debit card or cash. Yeah. He also said, do you need a credit score in order to buy a house? And if you ask him about Dave Ramsey, he'll tell you Dave Ramsey's an absolute idiot. Oh, yeah. That'll come up.

Yeah, that's fine. Yeah, and then he said we should take our equity in our house to buy new cars. He also said that payday lenders and car dealers are necessary if you need to pay for something. So here's the thing. Mikey, Mikey, stop. He's a finance professor okay he doesn't have any money you're getting a degree in entrepreneurship and one of the things is you have to learn to think critically and how to avoid these situations okay so what do you think the odds are that you're

going to change anything he believes or teaches i would say close to zero wouldn't you think the odds are that you're going to change anything he believes or teaches i would say close to zero wouldn't you think ken uh yes guaranteed i don't think there's anything that you can do or say or i can do or say that are going to change this guy's misguided bad teaching and bad advice he's going to continue to do it. Okay? You believe that to be true, Mikey? He's going to continue to do it no matter what we do. Agreed? True. Okay, so now you've got to decide. Now you've got to decide. Are you going to pass the class or not? Yeah, I have an A in that class right now.

Okay, just pass the class and move on. Okay. Because you're not going to change the guy, and you're way too smart to follow what he's saying. You know he's wrong. You've got good critical thinking skills. You've compared his advice to what you've learned from us, and his advice came up short, and you found our stuff to be the truth. My joke always is that I learned to borrow money from my finance professor

in college who was broke. A finance professor that's broke is like a shop teacher with missing fingers. I've been telling that joke for 25 years and it still gets a laugh yeah it's still funny because that's exactly the case here so here's a funny one mike you get this so my daughter denise ramsey at the time she was not married at the time was taking a personal finance class in college and the guy not only did everything that you're talking about but he always spent five to ten minutes every class trashing dave ramsey not realizing his daughter was sitting in the room wow and at the end and she called me and she's upset and she's angry because she wants to defend me. And I said, darling, just pass the class.

But at the end of the class, make sure you introduce yourself. And she said when she introduced herself at the end of the class, she got an A because she answered his questions the way he wanted them answered. It didn't change her opinion. She's never borrowed a dime. Didn't change anything. And then she introduced herself at the end of the class and said, I've been sitting here for the entire time listening to you trash my father but i wanted to make sure that you knew i was here and that you gave me an a and i wanted to thank you for the a and she said the guy almost threw up he almost lost it he almost lost his cookies right there

so i mean that you just got to have some fun with this, dude, because you're not going to change anything. Those convinced against their will are of the same opinion still. Sweet little Denise, because she's non-confrontational. She's not like Rachel.

She's non-confrontational. Rachel would have been standing in the middle of class having a heyday right there, and we'd have had to get her out of it. We'd still be reading headlines on that.

We'd still be reading headlines like her father. She would make the Tennessean. This is The Ramsey Show. Thank you. Our scripture of the day, Isaiah 48, 17, I am the Lord your God who teaches you what is best for you, who directs you in the way you should go. Albert Schweitzer said, I don't know what your destiny will be but one thing i know

the only ones among you who will be really happy are those who have sought and found how to serve ken coleman ramsey personality is my co-host today eric is with us in austin texas hey eric welcome to the ramsey show hey there dave hey ken uh thanks for taking my call sure uh first off off the top my wife and i have been doing the dave ramsey plan for seven years now and you guys have uh truly changed our lives so i appreciate it cool and you uh congrats on your instagram following you three billion more followers than i do so congratulations thanks brother didn't change either one of our lives. Yes, sir.

I have one of those good problems, I guess. My wife and I are in baby step seven, so the house is paid off. We're fully contributing to our retirement funds and things. And basically, we're looking to upgrade the house. We just had our second kid, and so looking to get a few more square feet, I guess. And right now our house is about $450,000, and probably trying to look to maybe the $650,000, $700,000 range. And I guess what we've been doing is putting money on the side in this investment account, and it's about $1,000 a month. And so I guess my question comes down to, do I just have to wait for that little account to be a couple hundred thousand, or I made up a new baby step called baby step 7B, where I pause some of my retirement and load it all up, kind of like on 3B, and try to pay cash that way. And so I was going to see your thoughts and get your wisdom on it. What's your household income? It's about $145 a year. Okay, and so you're putting what

percentage of the $145,000 away for retirement now? Or do you know the total dollars? It's $25,000 split between two Roths and a simple IRA, and then we have two 529s going as well that are probably about, you know, $5,000 to $6,000 total a year. Okay, so you're $25,000 on 145. That's only about 15%, isn't it? Yes, sir, that's right. Okay. And so we're saving an extra $1,000 into a separate account

that we're calling House Fund. Yeah. Okay, so here's the thing. Here's the thing. If you cut your retirement completely off yes it still takes 10 years yes sir so we got to do something different period regard the retirement doesn't save the doesn't save the day it doesn't okay i can do it in three years if i cut my retirement off no you can do it in 10 years if you cut your retirement off or eight years i mean it still takes forever right so we need more than a thousand dollars going outside of retirement right because i don't want you to cut your retirement i don't want you to cut your retirement off for eight years do you

no i was thinking kind of like how on 3b you'll tell people to do it for like maximum of three years. I know, but that's only $25,000. It's only $75,000. It doesn't get you there. If you're going to do it for three years, it needs to get you there. You follow me? Okay. Yes, sir.

Yeah, I totally get you. We've been on the no mortgage thing for the last few years. And I want to be there. It does feel different. But, I mean, so if you don't have a mortgage payment, what was your old mortgage payment? Like $2,000. So why can you only save $1,000? Because you were paying $2,000 when you put 15% away.

Yes, sir. Yeah, I don't know. I guess we went a little bit more lavish on the trip how big's the house your current house uh seven 1700 square feet how many bedrooms uh three okay i'm moving up if i'm you but the way i'm moving up is i'm gonna get a lot more aggressive on saving for the house i think you're i think your lifestyle is what needs to be pinched not your retirement account. Because you're not even willing to save your old house payment.

Is this the first kid, Dave? I didn't pick up one of his first kid or second kid. I thought it was his first kid. It was, but it's okay to move up in-house. It's going to take them three or four years anyway. They're probably going to have more kids. Right, right. It's okay.

But the thing is this. Save $3, dollars a month and then we can talk about dialing the retirement back a little bit but not completely off and then you can get there but don't talk to me about saving a thousand dollars a month because you're burning your money and lifestyle you're not even saving your old house payment towards the new house that's wimpy that's what i'm saying and i agree we're already doing those numbers before you gotta at least be able to do that i just think couples they feel like they got to upgrade in the house because of one kid the point is they could have two two kids they could share a room i mean they just don't need to be in a big rush here in the next year to two years here well i'm okay if they are because they're going to be millionaires i mean a 650 000 house they're going to be me yeah so yeah i'm agreeing with you

i'm saying relax a little bit it's okay to do it but you know but you're not here's the thing you never make enough money that you don't have to choose something to say no to i don't care what it is i mean i know a guy makes 10 million a year and he had to choose to say no to i don't care what it is i mean i know a guy makes 10 million a year and he had to choose to say no to a new jet i mean there's always something right that you could say poor guy that you can say no to right erica's in boston hey erica what's up hi dave pleasure to be on the show. Honor to have you. How can we help? Hi, so I'm in Baby Step 2. I am $55,726 in debt. I am a mom of three kids, six, two, and four months.

And I was just wondering if it's okay to start a family child care business because we do want one more child. However, we can't afford the daycare costs. And this makes me a little nervous. My mom is currently helping me take care of the kids. She is a child care provider, so she has her own business. And she's looking for me to take it over. I was just wondering if this is a good idea while I'm still in baby step two. I am currently in an admin.'s the i i mean are you single

i am married yes so what does he make so combined our take-home pay is sixty four thousand six hundred and eight dollars and what do you make uh that's our combined income i know what do you make um a year i make $62,800. Your husband makes $2,000? He makes $2,240 a month, yes, and I make $3,144. He currently just got a part-time gig as well. You just told me you made $60,000, but the household income was $62,000. Let's try again.

Okay. What is your annual income was $62,000. Let's try again. Okay. What is your annual income at your job, Erica? My annual income is $62,800. What does your husband make at his job annually? Annually, I want to say like $29,000. Okay. So his job sucks. He just started as a carpenter.

Yeah, his job sucks. He just started his carpentry job two years ago, so he's new. So he's not getting, like, a good pay right now. He did just get a part-time gig to make up for it. Okay. He's looking into trade school to become an electrician. So you've had to replace $60,000 worth of income keeping kids. Can you do that?

You can. I'm sorry. Can you repeat the question? Can you make $ sixty thousand dollars keeping kids yes if you can make as much as you're making now and you want to change over to that and you're and you're able to prove that today you can do that immediately taking over your mom's old business then that's okay but if you're telling me you're going to take a pay cut you can't afford to take a pay cut. Both of you can't have a job that sucks.

Right, exactly. That's exactly what I was worried about. I didn't know whether to fill up more of my money. So do you really know what you're going to make in this business? Exactly, yeah. That's the problem right now. Yeah, so it's a pipe dream that's going to turn into a nightmare until you dial the numbers in ken i i really put the pressure on the hubs here uh i make no apologies for that he's gonna

have to step up in this economy as a carpenter only making 29 000 i've got questions i got a lot of questions that we didn't have time to get into but he can make double without blinking if he puts the effort in and he's got a good attitude, clean record. I just don't know what's going on to where he's only making 29 as a carpenter. My goodness. In this economy with the building room. He should be making close to three times that with overtime. Yeah.

So I see a gap here. Yeah. And if you want to change over to the child care thing, Erica, you've got to dial it in for the sake of your family. I don't care what you do, but for the sake of your family, you've got to dial it in and make sure you're going to make at least as much. Make sure that is your making now. That puts this hour of the 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 folks, Ken Coleman here. Did you know The Ramsey Show is one of the most popular podcasts in the world? Get your daily dose of advice on life and money. Check out all of our shows from The Ramsey Network wherever you listen to podcasts.