The Ramsey Show - App - Do You Want To Be King of the AirBnB or Have a Peaceful Life? (Hour 1)

Episode Date: April 27, 2023

Dave Ramsey & Ken Coleman answer your questions and discuss: Keeping or selling rental property, "Should I use a Robo or A.I. investor?" from the blog: Dave's Investing Philosophy, The best way to go to flight school, "Should I keep money in the S&P500 or put it in savings?" "Is debt-consolidation a good idea?" from the blog: What Is Debt Consolidation? Have a question for the show? Call 888-825-5225 Weekdays from 2-5pm ET Enter The Ramsey Cash Giveaway for a chance at $3,000! https://bit.ly/TRSgvwy Shop our bestsellers during the $10 Sale! https://bit.ly/TRS10Sale Want a plan for your money? Find out where to start: https://bit.ly/3cEP4n6 Listen to all The Ramsey Network podcasts: https://bit.ly/3GxiXm6 Interested in advertising on The Ramsey Show? https://ter.li/s64ye3 Learn more about your ad choices. https://www.megaphone.fm/adchoices Ramsey Solutions Privacy Policy

Live from the headquarters of Ramsey Solutions, broadcasting from the pods moving and storage studios, it's the Ramsey Show, where we help people build wealth, do work that they love, and create actual, real, amazing relationships. The phone number here is 888-825-5225. Number one best-selling author, Ramsey personality, and host of the Ken Coleman Show is my co-host today, which means we've got the career expert, jobs expert in the house.

We'll be talking about that with you as we go throughout the show today. Thanks for joining us again. 888-825-5225 tony starts this hour in detroit hey tony what's up hey how you doing better than i deserve man how can i help good deal i have a quick question for you we i have a number of rentals um one of the rentals has a mortgage on it and me and my wife can't agree on if we should keep it or sell it. I would like to sell it. She would like to keep it. Okay.

The other rentals don't have a mortgage? Correct. Okay. So this is the only debt you have. How about your personal residence? Personal residence has a mortgage as well. Okay. Do you have any other debt?

Yeah, I guess I do have a truck that has a loan on it. Mm-hmm. So why are you wanting to sell this property? So I'm in my job, and I just don't want to focus on the ups and downs of rental. This one right now is an Airbnb, and, yeah, I just am over the – I'm overthinking about it. So the hassle. Correct. And she doesn't want to sell it. Why?

She doesn't want to sell it because it does – it would make a decent amount of money if we could pay it off quickly. It would bring in about $20,000. Well, that's assuming she continues to have free labor from you. That's very true. If we have to hire a management firm to run this freaking nightmare called an Airbnb, then suddenly your margins are going to go to squat. Yeah, well, the margin would still be about $20,000 a year.

We can rent it for about $3,000 a month and then less insurance and taxes. I just said you had to hire somebody else to manage it. Yeah. Yeah. If you keep it, you have to do that because you're done. Correct. Yeah. How much do you make on it if you sell it

um we would make about well we'd profit about 100. well i think that i think the core issue is is that you guys are not on the same page on where you want to end up if you decide on where we want to end up where do we want to be in five years do we want to be king and queen of the airbnbs um and uh being dead on my truck and uh being dead on our house and uh be spending too much time bunch of time on this is what we want our life to be five years from now um if it is then you probably should keep. But if you have a different set of, if you agree on a different set of targets that you're going after, I want to be debt-free, get my stupid truck paid off, pay off our house, and I'm going to get out of the Airbnb hassle business and have a calm, peaceful life again.

If that's your goal, then obviously you'd sell it. So, you know, if you were working the Ram goal then obviously you'd sell it so you know if you were working the ramsey plan you'd sell it but you're not working the ramsey plan you're just arguing with your wife about whether to sell a rental you're just you know that's all that's going on so you know you're just doing whatever the flip you want to do and y'all are arguing about this one thing so but that but the reason you're having this disagreement is you're not in agreement on your long-term goals and when you get in an agreement on your strategic long-term goals, then the tactical miscellaneous steps to get there will fall right in line and you'll be in agreement on those. Yeah. And I think you make a very good point about the long-term goals. I'm

not sure that they're both truly looking at long-term. They're not. They're looking at just this one thing. Yeah. She's like, well, they have other rentals and they're not thinking about, well, if we sell the house, we make a hundred,000, we pay off the truck, we've got these other properties that are cash flowing. They've got to think 20, 30 years down the line. I think that's the great advice you're giving there. And then once we can get on the same page about our desired future, then it's a lot easier decision. There's nothing really to argue about if we have a long-term vision that we agree on. Exactly, exactly. Evan is with us in Denver, Colorado. Hi, Evan, how are you?

Good, Dave, how are you doing? Better than I deserve. How can we help? Yeah, I see a lot of people are turning towards artificial intelligence and robo-advisors to get their financial advice. I was curious to see what you thought about that. Is that a good thing or a bad thing?

I know from what I've played around with it, they don't necessarily say your advice is bad, but they don't disagree with it or agree with it. I know particularly they say there is such thing as good debt and that the best way to get out of debt is a debt avalanche. Well, I mean, you just got to decide who you want to be advising you chatbot or human i just i see a lot of financial advisors putting it into their practices i was just wondering is it a dangerous thing is it a good thing yeah it's it's both um ai and robo investing

is is good it's there's nothing wrong with any of it um especially where you're dealing with a very small account and you're just getting started and it causes you at a low cost to get started as an investor but if i was managing a million dollars am i letting a chat bot do that nope don't think so yeah really i mean ai stuff's very impressive um we were i was looking at in a meeting this morning some of the stuff that we're going to be able to do with it it's um it's ridiculous yeah uh how how cool some of this stuff is but with it comes the danger of no human oversight and um and that's the the only way you know if the advice coming out of it is accurate is you're measuring it against a human's value system that's the point and ev, I would tell you that artificial intelligence

is about knowledge. What it lacks is wisdom. And that's what Dave's talking about. You're talking about a guide, a human being who understands principles through experience. And AI is nothing more than a world-class aggregation tool if you want to just break it down. And so it's knowledge, knowledge, knowledge.

But the answer to your question lies in what you said, artificial intelligence. It's not wisdom. It's knowledge that has been aggregated, and you need wisdom, and it's never, whether it's robo, whether it's an individual human being, you have to understand where the money's going. You are in charge of it. It's your fault if it screws up because you let it happen. It's your money. And so, you know, and so what that means is if your financial advisor says, oh, there's good debt, you need to go borrow on your house. You go, huh? I need a new financial advisor.

This one's an idiot. Oh, you know, you need to go get a universal life policy. Oh, I need a new financial advisor. This one's an idiot. Oh, you know, you need to go get a universal life policy. Oh, I need a new financial advisor. This one's an idiot. And so, you know, you have to make those calls because you've already decided certain things you're going to do and not going to do. And regardless of who it is that's coming at you, whether it's, which kind of, to me, it's very interesting. It's almost an oxymoron to say artificial intelligence. It's like, you know, like airline service.

You know, these things don't go in the same sentence. But anyway, but it is very impressive, and it is a great aggregator. So it's going to be kind of fun to see what we can do with it as a tool. But is it, am I going to turn my life over to a single human, a robo-advisor, or an AI chatbot? Not a chance. I'm in charge of my life. It's my job to manage it. I can listen to what they have to say and decide if I want to fire them or not. This is the Ramsey Show. thank you for joining us america i'm dave ramsey your host ken coleman ramsey personality number one best-selling author of the book paycheck to purpose is my co-host today now this is fun we got big news this is something we have never done in the history of Ramsey in 30 years.

Well, with the exception of when I used to teach Financial Peace University with an overhead projector and a bad suit. But ever since the class has been global and is being taught in tens of thousands of locations at any given time all over America, we've never done this. For the first time ever, our team of Ramsey personalities are each going to lead a financial peace university class online. It's true. Ken Coleman is going to be your coordinator. Jade Warshaw is going to be your coordinator of your class, and you're going to be in discussions with them.

You're going to be held accountable by them in the group if you get in the group now these groups are limited because the technology is limited on how many people we can put in there so again ken coleman rachel cruz can you imagine being in dr john deloney's financial peace university class i would put your seat belt on that was that's gonna be uh yeah you're yeah george camel jade Warshaw. These are great. Oh, yeah. And Eddie, Eddie Cullen, our event host, he's going to lead a class. Oh, yeah.

Each of them are going to have their own class. That means you're going to go through, if you sign up quick enough to get in their class, it means they're going to take Financial Peace University. You get to pick who you want to guide you through it. You've got to go sign up starting right now you got to buy get in the class and pick which one of these guys you want to do this is a big deal this is your chance to learn how to handle your money from an actual ramsey personality being your coordinator now they're going to be right there for you during the zoom meetings you can

talk to them face to face these classes are starting very soon and they're going to fill up in about two seconds. Again, there's not a lot of spots because we can only put so many people in a class with the Zoom technology and all that stuff. So sign up right now by going to Financial Peace University, Ramsey Solutions. I'm sorry, FPU.com. You go to FPU.com. Of course, you can go to Ramsey Solutions and click on Financial Peace University and find it as well. But fpu.com, you can pick out which of these. So, Ken, how long has it been since you've led an FPU class? It has been about 13 years. Wow.

Stacey and I led three classes in Atlanta in our time there. And I want to point out, if you sign up for my class, I've got an evening slot. So, U.S West Coasters and stuff. I'm going to be wearing, in honor of Dave Ramsey, my leader, my friend, a mentor, I'm going to be wearing a leisure suit and also have an overhead projector. We won't use it, but it'll be there as a prop. I never wore a leisure suit. I know, but I'm going to go a decade earlier.

I said a bad suit. I didn't say a leisure suit. I know, but I'm going to go. It was not I said a bad suit. It was polyester. I didn't say a leisure suit. I know, but I'm going to go. It was not John Travolta. It was the polyester variety. No, it wasn't. It was just bad. It was just bad?

It was just bad. I've always wanted to know what you mean by bad, other than just the way it looked. It was just cheap. But it was not polyester leisure suits. But I'm going to wear a leisure suit just to make it fun. Yeah. So, you know. I think you're disincentive.

I may have. I think people are not going to sign up. Yeah, I'm joking, folks. I have to look at Ken. There will be no props and no leisure suit. Oh, wow. But it is an evening class. It is.

And Jade and I are both doing evening classes because we know we've got people all different times of day. But here's what's cool. Go right now and see where the personalities, what the time slot is, because we're really making it available to everybody from every time zone. A little bit of just behind-the-scenes stuff for you guys.

They are a wee bit competitive among themselves as to which one's going to have the most sign-up the fastest. So if you want to support your favorite Ramsey personality and you want to go through one of their classes, you could jump in right now and give one of them a lead. So this is going to be fun. I think Eddie's going to win. He might might but i can't compete with george and rachel i mean jade superstar financial you come to my class because you're going to get some common sense encouragement it's going to be fun i just promise you that it's going to be fun oh he's already see i'm already working already oh see i'm working it it's it's already working it. Oh, see, I'm working it. It's pitiful. Is this a competition?

It's just pitiful. It is a competition. Oh, it is? Oh, I didn't know. All right, well, hey, I'm going to get a participation trophy. Hey, watch out. Everything's a competition with you people. All right, Bridger is with us in Salt Lake City.

Hey, Bridger, what's up? Hey, Dave, how are you doing? Better than I deserve. How can we help? So, I am a senior in high school. I'm just about to graduate, and I'm starting to think about college, you know, where I'm going to live, what car I'm going to buy. But I'm thinking about going into aviation,

and I don't want to go in debt with flight school because it's super expensive. What is the best route you think i can go with that join the air force through rotc or the academy join the air force and become a pilot i was thinking about that because i i'm kind of interested in you know f-16s and being a fighter pilot you fly one of those they'll let you fly the commercial stuff later, I promise. I know flying commercial, in order to make good money, you need to be with that company for a long time. A bazillion hours. And you have to pay for all those hours as a civilian.

It's very expensive to get into this world that you want to get into. Yeah. You're looking at right now average cost about 96 000 with no previous experience 75 000 when starting with a certificate and so i think dave's right the easiest most cost effective way if you've got the chops then you got to figure out if you got the chops i'd start talking to the air force you know you could also be a navy pilot so you got two options and don't let them suck you into doing something at the Air Force that's not about being a pilot because the reason you're going over there is to be a pilot.

So if they're not going to do that, then don't sign up with them. I'm not, you know, I don't want the recruiter to sidestep you here and give you the old ole, you know, and so I don't want to do that. But I do want you to go over there and talk to them about what it's like to serve your country for four years and come out with the pilots with all the hours you need to go commercial. I mean, it's, uh, that,

that will be awesome for you. And, um, much better than spending a hundred bucks, a hundred thousand dollars. Uh, and honestly, the,

um, it's, it's, it is a very romantic field to look at from the outside looking in. And yet we work with a lot of commercial pilots and pilots with private planes as well, private jets and so forth. And you spend almost all your time not flying. It's true.

They tell you that. They go, the best part is take off and landing so yeah it's just that you don't get to do uh you know and and it it does it does not it turns into you know you're a bus driver that's right you're driving buses yeah they have wings and an example here for this young man is is also look at things like a helicopter pilot you know in the coast guard same deal but then like a helicopter pilot, you know, in the Coast Guard, same deal, but then you move out. What about, you know, flying helicopters in medical emergencies? If your desire is to be in the air and doing something that is active and exciting, to Dave's

point, you got to look at all angles. And the advice, again, for this young man and all young people thinking about something like this, hang out with some pilots. You know someone who knows a pilot, to your point, and have a conversation. Get an idea of what's really involved. Yeah, and I'm not talking about a pilot that runs a flight school. That's not who we're talking to. That's correct. He's trying to make a sale. But I'm talking about a pilot who's done this for a long time,

who's currently in the mess that is commercial airlines. Oh, my Lord, what a mess. Steve's with us in San Antonio. Hi, Steve. Welcome to the Ramsey Show. Hey, Dave. How's it going? Better than I deserve.

How can I help? Yeah, so a little bit about me. I'm 23, turning 24 next month, God willing. And also, I'm one year post-graduation. I have 5K saved up. I earn a little less than 50K a year, and I have the opportunity to buy a house. Recently, my cousin is moving out of the city and he approached me and he said, hey, 155 at the high, and it would be around $1,300 a month. So I'm just wondering to see what your opinions are. Did you tell me you had debt?

I do. I have $23,000 in season loans. No, you don't need to buy a house. You're broke. I am. Broke people shouldn't buy houses. It's not going to be good for you. It's not a blessing.

Real estate is not a blessing. It is not a good idea to buy real estate when you're broke. That's why they call them brokers. You broker and broker and broker. You're going to be a broker. Now, you're 23. You make $50,000. You need to clean up your debt mess.

You need to pile up some cash. After your debt mess is gone and you get on a tight budget, pay cash for everything, and then talk about buying a home when you're 25 and you've gotten this mess cleaned up and you have a big old pile of cash. No, I wouldn't do that. I think it's a disaster looking for a place to happen, man. Please, please, Steve, please don't buy. I mean, Sean or whatever it is.

Steve, please don't do it. No, no. Just because your cousin has a house for sale doesn't mean you need to buy a house. This is the ramsey show ken coleman ramsey personality is my co-host today in the lobby of ramsey solutions on the debt free stage randy and jennifer are with us hey guys how are you hi how are you ken thank you for having us hey there love the t-shirt i survived dave ramsey and it's not in the budget these are great t-shirts very well done very well done where do you guys live

tampa florida cool and how much debt have you paid off 122 0002,000. How long did this take? 26 months. Good for you. Wow. And your range of income during that two years? When we started $130,000 and we're now about $160,000. Good for you. What do you guys do for a living? I'm a nurse manager. I work in the same hospital, distribution tech. Ah, very cool. All right. What kind of debt was the 122 000 a little bit of everything we were normal um we had about 60 000 was of student loans and parent loans um about ten thousand dollars was credit card and the rest was two vehicles oh okay yeah you were normal yeah how long y'all been married 14 years. And you look up at the 12 year mark or 11 year mark and say, this sucks. What happened? How did you get connected to this Ramsey thing?

Well, when the pandemic started, we obviously had to continue working. So it was driving to work. There was nobody on the roads. It was wonderful. That part was good, no traffic. But it was kind of lonely. And then November 2020, I turned 50. So retirement was kind of really, really close, closer than I ever felt. The old 5-0 wake up call. Yes. And so I started kind of doing everything, trying to save money, invest, pay off debt, felt a little bit scattered. So one day my son said, mom, you should listen to a podcast by Dave Ramsey. And I said, what's a podcast? And here's Dave Ramsey. So he had to download the podcast app on my phone, and then he found your podcast. Ten minutes, I was hooked.

And ironically, the first month of listening, Ken and you had a show, and there was a veteran who called in, and you had made the statement that if you put a dialed-in veteran on this, they'll just do it. And I, myself, am a veteran, and when i heard that i said game on and it feels pretty full circle now that i come here to do my death free scream and ken's here with you i love it so uh randy your wife is learning these newfangled things and called podcasts and listening to a crazy man and she comes home and says uh we're getting ready what'd you say uh she told me about this and i was like well first thing my thought was dave who yeah for real but after she explained it and uh all the details i was like well i'm all in let's let's go for it wow and here we are that doesn't sound like such a struggle that you need a t-shirt to survive

dave ramsey yeah i gotta know more is that just a fun slogan or was it really tough it was really tough i mean what was so tough just i mean in order to do this program you have to have communication i mean it's so easy just to like you said spend and forget about it and spend and forget about it and before you know it you're you're knee deep and you know what so yeah yeah well i mean and you've just been kind of shuffling along and everything just keeps getting bigger the debt does exactly it doesn't go away you just add to it a little bit every year and then you look up and go god we got 122 000 dollars here not even counting the house yeah wow how intense was it i mean when you went all in i and by the way what tell

us our audience what service what branch of service you served in air force air force thank you very much for that thank you uh so what was so intense i mean what did you guys do right out of the gate because this is a lot of debt in a little bit of time we followed everything to the t i mean no eating out never stepped foot in a restaurant, coffee shop, nothing. We literally got up, went to work, came home. That is it. Everything was budgeted down to the dollar. We love your EveryDollar app.

Never used the budget in my entire life. That app is amazing. I actually have a panic attack now if it gets too close to the start of the next month that I don't have my budget made. Wow. I love this. So, yeah, so lots of discipline. And also lots of monthly budget meetings. Sue, that helped dialed it in.

She really helped a lot with that because this is how much we need. This is how much we're, so that helped tremendously. So how much extra did you work? Well, I'm salary, so I couldn't do a ton, but there was a period of time I did do some door dashing. So here's the 50-year-old woman door dashing food to 20-year-olds. While listening to a podcast. While listening to Dave Ramsey. And then Randy had a pretty labor-intensive job for a period of time that really brought some income in.

So it was tough. He was on afternoons. I was on days. Okay. Wow. Well, good job, you guys. Good job. What do you tell people the key now to getting out of debt is?

Just communication. Like I said, you have to be to you have to be on the same page you just can't have one person dragging the other person through this process it's not going to work yeah so you guys really um i mean you were very unified 100 percent yes in this approach oh yes it's very difficult to do if you're not especially the amount of money you paid off in this. Did you sell anything big? Nothing big. We didn't really have much.

You just paid off the cars and kept them? We still stayed in the principles that you recommend, so we figured we're just going to pay them off and now keep them forever. Good, good, very good. Way to go. How does it feel to be free? It's amazing. And we were very, it's very humbling to come up here to kind of put your stupidity out here, but the debt-free screams definitely were a motivator for us and kept us going, especially in like midway. And you see these mountains of debt and just hearing other people's stories really helped us like don't give

up don't quit it's motivation so it's once you're to the end i mean it is so worth it and now we just did a quick trip here to meet you and uh come to ramsey solutions and now we get to watch all of our money pile up in the savings what a different emotion that is very that you had when you turned 50 and started looking at the end of life now it's a whole different view yes yes it is very cool very cool well congratulations we're very proud of y'all thank you very much extremely well done excellent excellent story too and uh no you didn't do anything that you should be embarrassed about standing on this stage you should you did a lot anything that you should be embarrassed about standing on this stage. You did a lot of things you should be proud about. And so most everybody in America has a bunch of stupid debt,

and you guys decided to do something about it, which is pretty impressive. Pretty impressive. We've got the Live and Give box for you. That includes the Baby Steps Millionaire's book, the latest number one bestseller on how to be a millionaire, and that's where you're going next for sure. The Total Money Makeover book that 10 million people now have used, and you've used the principles from it for sure,

and Financial Peace University membership, all of that. You can either use it or give it away. It's the live and give box. It's all for you guys, and we sell those, of course, in the bookstore as well. So thank you. Thank you so much for being up here. And you brought one of your children with you? Yes, my daughter Madison's here with her boyfriend, Eli.

All right, very good. Son Anthony's at home, dog sitting. Well, somebody's got to do it. Way to go, Anthony. All right, good stuff. All right, Randy and Jennifer, Tampa, Florida, $122,000 paid off in 26 months, making $130,000 to $160,000. Count it down. Let's hear a debt-free scream.

Three, two, one. We're debt-free! Yeah! That's how that's done. Woo! that's how that's done it is interesting how many times something happens in someone's life and it they have a baby they get married they turn 50 they lose a job they get a new job uh and that is that there's this change that gives them the wake-up call. That's exactly right.

And they decide, you know what? Life where it is now is not what we want it to be, and we're going to finally take the steps to live the life we want. And there's no regret with people that pay off all their debt and live with true freedom, financial peace. I've never had somebody do a debt-free scream and go, you know, I'm so sad that I did this. I'm going to go right back in debt. I've never had somebody do a debt-free screaming, guys. You know, I'm so sad. I'm just sad that I did this. I'm going to go right back in debt. I never hear that. This

is The Ramsey Show. Thank you for joining us, America. Ken Coleman, Ramsey personality, is my co-host today. Thank you for joining us. Sean is with us, Ramsey Personality is my co-host today. Thank you for joining us. Sean is with us in Orlando. Hey, Sean, how are you? Hey, I'm doing just fine.

Thanks, Dave and Ken, for taking my call. Sure. How can we help? Well, my wife and I are in Baby Step 7, and we're doing a monthly dollar cost average into an S&P index. Our time frame is five years, and my question is, do we continue the dollar cost average for five years all the way through, or do we taper back into savings at a certain point? Why would you taper back into savings? Well, I guess I'm overthinking it, because I know that if the time frame is shorter than five years,

you want to save and not... Oh, I see what you're saying. I see. So what are you buying with this at the end than five years you want to save and not oh i see what you're saying i see so what are you buying with us five years a new home upgrade our home that's fine okay um no uh if you started if you start tapering back savings, that would be you're presupposing you're trying to time the market, and I wouldn't. I would just play it all the way through. Unless you see some kind of serious dark cloud on the horizon that scares you, and then I would just move it all to cash at the end of the five-year period.

Okay? How much money are you going to have in there after five years? Probably about $100,000, $125,000. Okay. And so if it loses 10% of $12,000, it does not keep you from doing the deal? Sure. Okay. And that would be the most you would ever see.

I mean, very, very few times in history do you see the market lose more than 10% in a 12-month period of time. Very, very few times. And so that's an amount of money you can absorb, and it doesn't keep you from doing the deal. So I'm going to ride it all the way in, and unless I see some big, huge, not just news, not just stuff on the news, but I'm just really, really, really concerned about the presidential administration or something like that that's going to screw this thing up,

I'm going to probably just sit there until I buy and just take it out of the s&p 500 and buy as a matter of fact the truth is that's what i do i don't worry that much about dollar cost averaging but i use an s&p 500 i throw excess cash in an s&p 500 uh weighing over and above all my other investing okay this is just excess cash until it gets enough in there to buy a piece of real estate and whether that's a year two years five years seven years whatever it is i just keep throwing it in there and then when i'm ready i just take enough out of that s&p and buy that piece of real estate then and in a sense that's what you're doing and i do that all the time for investment real estate um and so right now i've got a pretty good stash sitting in S and P and the market's down.

And so, uh, I'm going to do really good when the market rebounds. So it's going to be an excellent time next, you know, next 12 months or so to pull that out and buy some real estate, except that the real estate will probably have gone up, but, um, depending on what I'm buying, but anyway, all that. So to say, yeah, I'm just going to ride it straight through. I'm not going to try to back off and, you know, play the game against the odds and be in cash. You'll lose more than you'll make 90 times out of 100. Screwing around with that.

So good question, though. Thanks for calling in. Open phones at 888-825-5225. Ken Coleman, Ramsey personality, is my co-host today. Ethan is in Asheville, North Carolina. Hi, Ethan. How are you? I'm doing good.

How are you doing? Better than I deserve. How can I help you, sir? Well, me and my wife are thinking about considering a debt consolidation loan. We don't have any type of credit card debt. That's just something earlier on we decided we didn't want to get into. But really, all we have, I guess, as far as debt are a couple vehicle loans. And the other big part of debt that we have is whenever we had got our house,

they had under budgeted us on our well. And so we had to borrow about $10,000 from a family member. And we have also purchased a storage building from that family member as well. So we actually owe them right at $13,500 for everything. So we're trying to figure out if it's best to do a debt consolidation loan for all of that or if it would be better just to make payments to them as we can afford it. The only thing with family is I've seen a lot of times where you owe family money and it causes issues. Yeah, you should have thought of that before you bought a stupid barn from them. That's my biggest thing is just trying to figure out if we should do a debt consolidation loan or if that's even a good idea.

What does a debt consolidation loan do? It just puts it in one pile instead of four piles. Pretty much, yeah yeah doesn't change anything well i know sometimes because we had figured it up it was going to save about four hundred dollars a month um no it's not not unless you stay in debt longer okay that might be because you didn't change your interest rate by five thousand dollars a year on the figures you gave me you'd have to change your interest rate by ten5,000 a year on the figures you gave me. You'd have to change your interest rate by 10%. What kind of car loans have you got?

A 19% car loan? No, sir. No, I've got a 12% car loan, and they were going to match that at the debt consolidation loan. Yeah, which means you got absolutely gained no ground. So where did the $400 savings come from? Only one way mathematically it could happen, and that's extend the length of the loan. Okay. Yeah, that's what it was, I believe i believe yeah yeah why you want to be in debt longer well just because it was going to save us a little bit of money i guess no it didn't save

you money per month it didn't save you money you're going to be in debt longer and it's going to cost you more money because you're going to pay interest longer. No, that completely makes sense. Yeah. So what's your household income? Well, I'm self-employed. My wife is a stay-at-home mother. What do you make? Profit was $70,000 last year. Okay. You guys roll up your sleeves, don't go to restaurants,

and don't go on vacation until you get this crap cleaned up. What do you owe on these cars? Well, I've got a truck payment, and it's $16,000. We've got a Honda CR-V payment and it's 16 000 we've got a honda crv payment it's 5500 is what we owe left on it then we got a personal loan to borrow um for a vehicle we got when we got the vehicle the transmission went out so we had to also borrow for that and the total of that personal loan is 6500 yeah. You're driving an awfully nice truck for this mess. Okay. So, yeah, you got, you know, you got, what, $45,000 including all the family junk, and

you make 70, and so it's going to take you two years of living on beans and rice, rice and beans, and you'll be done. Right. List these debts smallest to largest, pay minimum payments on everything but the little one, and attack the little one like your freaking life depends on it. Okay. And go get your life back, and quit borrowing money for this stupid stuff yes sir it did not bring you joy right yeah so next time you need a truck don't buy one unless you have the money be like your grandpa don't buy it unless you can afford it yeah you know i'd like to see them beyond what you said i'd like to see them jumpstart this. And if it's me, I'm looking,

if I've got some equity in that truck, I'm selling it. I'm working extra hours. We are in the best part-time economy as it relates to jobs that we've ever seen, Dave, in the history of America. He can go make some money. I'd jumpstart this. And you know, let me ask you this, Ken, because you talk about the jobs part all the time. And from the very first day we started teaching Financial Peace University 30 years ago, we've told people get an extra job. And it used to be we tell them deliver pizza. Now everybody seems to be delivering food, Uber Eats. And I'm not against Uber Eats or door dashing or any of that. That's all fine. It's an easy thing to plug in and plug out. You can log in, log out, just keep rocking.

You can manage your own hours. I'm not convinced it is the most profitable part-time job. It's not. What are they? Yeah, so they are, you're looking for manual labor positions. And what I mean by manual labor doesn't mean shoveling or using a hammer, but if they just need a body to stock shelves and warehousing, manufacturing right now is really, really strong.

They're paying more than you can make doing Uber Eats. Yes, much more. Because if you go work for Walmart or a Target or a big box store and you're working off hours, so he's got a full-time job. He's running his own business. How can I pick up 20 hours a week? It's just rule of thumb. What do they pay in those places? $16, $18 to $20 an hour.

Depending on where you are. Depending on where you are depending on where you are so you gotta look the point is don't just assume i'm gonna go drive here's the thing i was talking to when we were in salt lake city the other day i was talking to a group and uh just standing around at one of our events and uh one of them was telling me that stinking babysitter yes is getting 30 bucks an hour that's true let. Let me tell you, they're really crazy. $30 an hour for babies, dog walking. The lady was on here yesterday.

She did her debt-free scream. Yes. 30 minutes for $30. Yes. Rich people don't even walk their own dogs. That's exactly right. What is this? That's right.

I know they're scared of leaves. That's right. You get your leaf blower, you can make money because rich people are scared of leaves, but I didn't know they don't even walk their own dog. That's right. You get your leaf blower, you can make money because rich people are scared of leaves. But I didn't know they don't even walk their own dog. That's right. But just look at your local economy. Who's having a hard time hiring people? See what they're paying. This isn't about skill. This is

about gazelle. And so go fill a gap and make some really good money. Yeah. Kick your money up. Drop your expenses down. Clean your mess up. You can't borrow your way out of debt. That's the moral of the story of this call. Debt con consolidation doesn't work because you haven't fixed the problem in your mirror. Hey, it's Ken. If you love the show and want a deeper dive on your money journey, we have a weekly newsletter that gives you trending and helpful articles and tips on following the Ramsey way. Go to ramsesolutions.com today to sign up for our newsletter.

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