The Ramsey Show - App - Don't Cash Out Your Retirement to Fund a Wedding (Hour 1)

Episode Date: September 13, 2019

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Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studios, it's the Dave Ramsey Show, where debt is dumb, cash is king, and the paid-off home mortgage has taken the place of the BMW as the status symbol of choice. I'm Dave Ramsey, your host. Thank you for joining us. Open phones at 888-825-5225. That's 888-825-5225. That's 888-825-5225. Kim is with us in Iowa City, Iowa.

Hi, Kim. Welcome to the Dave Ramsey Show. Hi, Dave. Hey. I have a question today about farm transition. So how do you transition a family business, specifically a farm, and have it not be a partnership with my in-laws? Okay, so you're running it with them, and then they're going to give you ownership?

Yes. Right now we don't have any ownership in it. We're just working with them, helping them out on the farm. And then eventually someday my husband and I would like to take it over and own it. Okay. All right. And they're going to hand you the keys? Hopefully.

That's the goal. But I know that they've gotten it from their parents, and I know there's a lot that goes along with that. But how do we work now knowing that we want to get some equity or some flat equity, things like that, without having to basically either, A, buy them out completely because that's a lot of money, or, B, have it be a partnership where I know you don't usually support those. Yeah, in a family, it's a little bit different. It's two old boys sitting and having a beer that decide they go in the heat and air business.

That's where you get trouble. But a family partnership is a fairly normal thing. Are they planning on giving this to you at the end, or you're going to have to buy it from them at the end? Things we've talked about now is that they think that they've done with their parents was they would keep all of the land, and we would buy the business portion and then just rent the land from them so that could be their income in retirement and then once they were to pass away then it would be willed to us but some creative things that way um we're one work together for a long time until they're unable to gotcha okay well i mean my kids work on my team here and um and they're not in charge

uh i am and so but someday uh they will uh own this place and run this place um that's the plan right now anyway and um it looks like it's going that way so uh uh in in our case what we're going to do is we're going to just transfer the ownership to them they're not going to buy it obviously i don't believe in debt i don't want them being in debt to me that'd be kind of weird like like inconsistent from my whole life's work so but in your all's case know, they can begin to transfer this stuff. And actually, the tax law, the estate tax law, what's this farm worth? Oh, I don't know off the top of my head. I would have to look at the books.

But it's 120 acres, and then it's actually a pick-your-own-berry farm. So there's some value in that as well. As long as it's under $ million dollars which it is you can try they can transfer the whole thing now and uh in terms of ownership to avoid estate taxes of any kind uh if they want to there's a way to do that called the unified estate tax credit and um the um the question is then how they're going to eat during that time. I'll give you an example, okay? In our case, we've transferred 99% of the ownership of this company to our children already. I only own 1%, but I own the only voting stock.

So I still have complete control, okay? And in a very real practical sense i'm still the owner but that's all for estate planning to get it out of my name before i die so the government doesn't tax us into oblivion that's why we did that so you can sit down with an estate planner and structure all kinds of different ways i'm a little nervous about them leaving you the land in the will um i'd like for you to get ownership of it somehow before that without being in debt to them but um you know there's some different structures and things i think the thing you've got to do is you got to sit down aside at what point right now you're an employee

correct you're not going to be a partner shut up and i don't think they need to be transferring equity to you necessarily now or at least control to you at this stage but we what you want to do is you want to lay out a game plan where we want to end up and then what are some incremental steps we can take in the middle to end up there and how can we take advantage of some of the estate tax laws that are in place today that might not be in place later we have some of the best most most liberal ways to pass, most generous ways, liberal is probably not the proper term, generous ways to pass estates right now that we've had in decades

under the Trump law, the tax law that just passed. And so you really want to look at it now, and there may be some strategies to get it out of their name, but still give them control like we did here as an example. So what you need to do is sit down and determine where you're going, and then what are some steps, some interim steps to get you there that give them the income they want, but also protect you from the brothers and sisters coming in, fighting about the land later or something after it was promised to you or whatever.

So a straight will makes me a little nervous. They can move it into a trust, and the trust has terms that dictate all of these things, but as long as you follow them, then it's set. That's a little more secure than a will in a situation like this. So you need to spend some money and some time on an estate plan. They do. And you guys need to do some planning as to where you want this to end up at the end game and what are some things we can do along the way.

At the 10-year mark, here's what we're going to do. At the 20-year mark, here's what we're going to do. At the date that you reach this age, you're going to step aside and we're going to step in or whatever it is but you need to lay it all out ahead of time rather than have this vague thing of i'm gonna give it to you on a die that's just probably not something i want to work my whole life towards i need a little more than i'm gonna give it to you when i die that one doesn't work for me and so um it sounds like you all are talking about it, and that's very wise and very sophisticated, but it's a big deal.

Folks, all of you need a will. All of you need a will. If you're 18 years old or older, you need a will. And the will needs to be drafted to fit the laws of the state you currently reside in. So if you've moved since you've done a will, if you've gotten married since you've done a will, if you've divorced since you've gotten a will, if you've had kids since you've gotten a will, if some of your kids went crazy since you've gotten a will, whatever. If there's any life changes, you need to update what you had or redo what you had.

State-specific. It costs too much heartache, and it costs too much money, even if you don't have any assets, dictating who's going to take care of the kids. You want your mama and her mama fighting over who's going to take care of the kids if both of you two die on your little flying episode, you're going to go fly somewhere for the weekend and you both die, and there's no dictation on the kids. The state's going to decide with the two parents fighting over it. No.

You need a will. You need a will. I'm not dying. You're going to die. And a will does not increase the probability of that. You need a will. This is the Dave Ramsey Show. I got a call the other day, and I thought it was worth talking about again. It was from a wife looking for life insurance for her family.

She asked why I only recommend term life insurance instead of cash value plans like whole life. I usually explain how you overpay for coverage, earn a horrible rate of interest, and don't get your cash value when you die. But this time, I just had her go straight to Zander.com and get a rate. And then we compared that rate to the whole life plan, and she immediately saw the huge savings. She realized all the things she could do with that money like paying down debt, investing in a smarter way. That made it real for her. It makes no sense to buy or keep a cash value plan when there are smarter, less expensive ways to protect your family. That's why I suggest that everyone go to zander.com or call them at 800-356-4282 and get a free quote that's

zander.com or 800-356-4282 Thanks for joining us, America. Roshan is with us in Detroit, Michigan. Hi, Roshan. What's up? Hey, Dave. How you doing? Better than I deserve. How can I help?

All right. Can you hear me fine? I'm sorry? Yeah. So I talked to you about seven months ago, and I just lost my job. I was getting a severance package and moving to a new city and you kind of told me, all right, once you get settled, you know, use the rest of the money to pay down some debt, all of the baby steps. And since then I've been doing that, but I do plan

on getting engaged in the next four months. And I was wondering, do I use that money? Cause I still have money from that severance package to get a ring and put some to a wedding, do I use that money, because I still have money from that severance package, to get a ring and put something to her wedding, or do I just write a check and become debt-free? What is your income? $90K. Okay, and how much debt is there? A total of $15,000. $15,000? Yes.

Okay, and how much is in your severance package? I have $12,000 left, but then I can have i i got three by next month just from saving yeah okay uh so when would you get married i wouldn't get married uh right until 2020 okay so you got plenty of time saved for the wedding if you got no debt right correct okay so we need 15 000 plus a ring and you have 12 and you have $12,000. Exactly. Okay. So if you want to do the ring out of that money and then throw the rest of it at the debt and then pay the rest of that off in the next few months, that sounds cool.

Okay. That was my plan. Yeah, your ring should be no more than one month's pay. Okay. And don't let someone tell you a diamond is an investment uh i got my wife my wife has a whole bunch of diamonds i bought them over the years just to say thank you for hanging out with me um and none of them have gone up in value okay the only thing they did was just make her smile and that was worth the investment but

this idea that oh there's diamonds in investment bull they don't go up in value investments i have go up in value so what you're buying is something uh just is a statement of love commitment and so forth and uh so don't get too strung out as my point on uh what you're spending or why you're spending it. Just it is what it is, and don't let someone tell you it's an investment. The second thing is there's more markup in diamonds and jewelry than just about any other category. Furniture would be another one. It's double, okay?

So find a good diamond broker that can actually teach you a little bit about diamonds and help you find a deal because, again, they don't, you know, well, this is a really clean stone. It'll go up in value. I've got several of them that have hardly any blemishes in them on Sharon's hand, but I haven't noticed that changing anything. It's just is it pretty, does it do the job and so forth and so you know don't overpay and don't pay when you're all said and done don't have more than a month of your income in it and uh the jewelry store will tell

you three months and that's because they sell jewelry hope that helps dude congratulations sounds like things are going well norm Norma's in Tampa, Florida. Hi, Norma. How are you? Good. How are you doing? Better than I deserve. What's up?

Thank you for taking my call. I've been listening to you for the past month, watching videos and listening to your program. And my question is, I got in a budget this month, just thanks to you and to the things that you teach. My question is, my partner and I have decided to get married on November. We don't have any savings, only the baby step one. I have previous to a $5,000 on a Roth IRA that I was considering to take off to pay for some of the wedding expenses. We have a very small wedding planning, just a family, but still, you know, it's going to cost something that we do not have. Should I take it? I know that will be a penalty, but I'd rather pay for cash for all the expenses and not, you know, have debt. Well, I mean, they're going to hit you with a penalty that's pretty substantial,

and it's like borrowing money at 30% interest. I mean, it's not wise. So, you know, I would just say we're going to do nothing. We're going to live on beans and rice for a month, month and a half, and whatever we can save up is what we're going to spend on the wedding. I wouldn't cash out my Roth, and I certainly wouldn't borrow money under any circumstances for the wedding. That's pretty limiting, but, you know, maybe you got some stuff around,

you can sell what's your car worth. Maybe you sell your car, get your cheaper car, use that for the wedding. Oh, I don't know if I want to do that. Well, that's the, there you go. I mean, that's the thing. So, you know, that, that's what you're looking at. And, um, I have a big garage sale. Uh, what can you sell on Craig's list? What else can we do? And, you know, push around that way. I'm going to scrape and scratch and claw the money together, and we'll spend that money. No debt, and no, I wouldn't cash out my Roth IRA. I never tell someone to cash out retirement

except to avoid bankruptcy or foreclosure, and this is neither. Dave is in Austin, Texas. Hi, Dave. Welcome to the Dave Ramsey Show. Hi, Dave. Nice to talk to Ramsey Show. Hi, Dave. Nice to talk to you. Thanks in part to your book and your teachings. We're in financial step number six.

Way to go, dude. Thank you. So we are in Austin right now, and we're contemplating to move to Charlotte, North Carolina. And part of the reason is just to do away with our mortgage. Our house presently is $400,000. So if we sell the house and we buy a house in Charlotte area for about $250,000. Excuse me, let me just rewind back. We owe $150,000 on the house.

So basically the equity in the house is $250,000. So my thinking was if we move from Austin to Charlotte and basically buy the house cash in Charlotte, we basically would have no mortgage because we've paid off our student loans, cars. We don't have any credit cards. Is there some other reason to be in Charlotte? We have a family nearby.

I'm starting a new business. And right now, so I'm basically in the baby steps of starting the business. So we can have assistance from the family. And we also have some family who lives in Northeast and Florida and Georgia. So we would be sort of near to everyone. That's a good reason to move. But it doesn't, I mean, the real estate prices between Austin and Charlotte are not that much different.

And it certainly doesn't cause you to be able to buy cash because you move to charlotte what happens is you're moving down in house when you move to charlotte or into a different kind of an area than you're currently in or something because real estate prices are not twice as expensive in austin as they are in charlotte matter of fact they're probably hardly different at all very similar towns very similar economies yeah mean, just to, I mean, because my numbers are present mortgage payment is $1,700 a month, and our tax on the property is $600. Okay. But if you sell your house and stayed in Austin, you could buy a $250,000 house for cash in Austin,

or you can move to buy a very similar house in Charlotte for $250,000. But, I mean, the reason you're able to pay cash with your equity is not because Charlotte is that much cheaper. It's because you're moving down in-house while you make the move to start a business and be near family. I think you make the move. I think every bit of the decision is right. There's just that one data point that you're using for analysis that's broken.

I just want to point that out. But other than that, I think you're fine. You're going to end up moving down in-house, have a debt-free house. You're going to be in a town near your family, and you're starting your business with a debt-free house and near your family. That's all very smart. I like every bit of that. Hey, thanks for the call. Appreciate you joining us. Open phones at 888-825-5225. Mitchell is on YouTube. Dave, I know Financial Peace University is Christian-based. I'm agnostic.

Will it still work for me? Sure. Sure. Common sense is still common sense. Law of gravity is still law of gravity, even if you don't believe in it. Jump off a building, you'll discover it. But even if you don't believe in it, it's there. And so, yeah, come on, man. We'd love to have you. And it's not too Bible-thumping.

I don't think you'll be too offended unless you're just looking to be offended. If you're looking for it to be offended, I can help you with that. But I don't think this one will do it. It's pretty lightweight as far as the Bible study parts of it go. But it's based on Scripture. Hey guys, at the Dave Ramsey Show, we really value your input. It helps us to know what's important to you so we can deliver relevant content to help you crush your money goals. We just launched a brand new survey, and we'd love your feedback. It only takes a few minutes, and you'll be entered to win a $100 Amazon gift card. No purchase necessary. Take the survey at Dave from Blinds.com. Find out for yourself why Blinds.com is the number one online retailer of custom window coverings.

Site-wide savings are happening right now, plus an additional 5% off at Blinds.com slash Ramsey. Blinds.com slash Ramsey. Leah is in Michigan. My fiancé and I are beginning to plan for our wedding. He's on baby step three. Got his emergency fund going. I'm on baby step six. Whoa.

Paying 100% for the expenses and refuse to incur any debt for the wedding. You go, kiddo. Where should we place saving for the wedding in the baby steps? Um, well, he would after he finishes his baby step three, and you would now. Anything after baby step three is where you buy stuff. The wedding's not an emergency, so we don't use the emergency fund. So I would have him have a small, you know, we say three to six months of expenses. So let's say three months of his expenses is his emergency fund.

And then immediately he starts saving for the wedding, and you would now. You'd definitely start now. But above baby step three is when we start buying things we want, and that would include a wedding. But look at you. Way to go. Save up, paying cash for it, got things rolling, talking about money. Everything is going the right way.

Rod's with us in Kalamazoo, Michigan. Hey, Rod, what's up? Hey, Dave, how you doing? Good to talk to you. You too, sir. How can I help? Quick question for you. My wife and I are getting divorced after 21 years.

Yeah, it stinks. But she wants to move on. And I'm kind of in the role reversal where she is going to pay me spousal support. And she has to pay me around $300,000. My question to you is she doesn't want the house, and there's about $115,000 each that we'll get in the house, and we owe about $215,000.

Would you take the, I guess, about $175,000, $180,000, would you put that towards the mortgage, or would you reinvest it in the stock market somewhere? Okay, I'm a little bit confused. So she's going to give you $300,000 in cash or in monthly support? Well, we're going to do the lump sum, and out of that $300,000, $115,000 is equity in the house. So she's really going to give me about $185,000.

Okay, so half of the house, her half of the house she's going to give you, plus she's going to give you $185,000 in cash to buy out spousal support. Yep. Wow. And we owe about $215,000 on the house. I make about $85,000 a year. Okay. What's the house worth?

About $450,000. So you could almost pay off your house. Close. I'd be about $40,000 short. And you have any other debt? Nope. We've always lived debt-free. Always paid cash for our vehicles or close to them.

Credit cards, paid them off every month. We've never had any debt. You got kids? A 17-year-old. So given this situation, you're a bachelor that makes $80,000 a year. Yep. Why are you buying this house? Why am I buying it?

It's on a lake, and I love it. There you go. It's a lake house. So me. Yeah, and she doesn't want it. No, I don't care. I mean, she doesn't want it. I'm just wondering why you did, because you have a whole new chapter coming up, a new life that's different than the old life.

But the lake does make sense. And if you didn't own this house, you'd be looking for one like it. Close to it, yeah. Okay. Yeah. Yeah, I'm probably doing that. I'll probably just take it and throw it at the house. Okay.

You got an emergency fund in place? I have about $450, or excuse me, about $480 in my 401k, and I have a Roth that's worth about $85, and I have a pension right now that's worth about $170. And how much is in your emergency fund?

Well, I guess technically I don't have an emergency fund. I just have my 401k. That would be technically, would be you don't have one. It's not technically. You just don't have one. Okay. You need an emergency fund. So I'm not putting the whole 185 towards the house.

I want a rainy day fund to keep you from having to use the 401K if you had an actual freaking emergency. Okay. So let's, you know, you make 85. Let's set 20 in the emergency fund, though. 165 at the house. Then you've got about 50 you need to plow through in the next two or three years, and you'll be 100% debt-free. House is worth $3,000-something.

You've got a bunch. You'd be close to being a millionaire at that point. How old are you? I am 49 right now. Yeah. By 55, you'll be a millionaire and 100% debt-free if we do this plan this way. Okay. Yeah.

That's kind of what I was hoping. I know my financial planner's like, you know, don't throw it all in there. I'm like, well, I want to get another opinion. Well, your financial planner's always thinking, are we going to borrow all we can on our home so that you can invest it with me and make a percentage? No, thank you. He's actually pretty good, but he doesn't want me to throw all my money.

I'm like, well, you know, if it's my money, I can do how I want, but I should take the $20,000 and keep it just in case. I want an emergency fund or any day fund, just liquid, just sitting in a boring-off account. You never use it for anything. It's just there in case, and then the rest of it we're going to throw at this house, and then have a systematic

game plan that you do the math, and you go, I'm putting this amount on this house, and in this many months it's gone. Okay. I was hoping to have it done in about two years. I think you can. If it all works out. I think you can.

I mean, you don't have a lot of obligations at this point. Nope. No car payments. No credit card payments. Just monthly bills and food and my son and I. Think you're good, man. Have at it. Sorry you guys are going through this,

but wow, what a deal. She's cutting you. Ernesto is with us in Phoenix. Hi, Ernesto. How are you? Good. How about yourself? Better than I deserve. What's up? Thank you for taking my call. Anyways, I'm trying to get my business

restarted for the third time within the last eight years. So I just recently quit my job about two weeks ago. I'm currently doing some side jobs that's keeping my head above water. So I have about $10,000 in the bank and about $8,000, you know, under my mattress, literally. And I have my wife's 401K, and my sales is about $31,000 total. I'm trying to purchase a used semi-truck, which is about $32,000. I need about another $5,000 to get everything, you know, Ring Stadium, authority, insurance, license, and all that stuff.

So I don't know if I should put down about $25,000 towards a semi-truck or pay it off cash and keep doing side jobs and come up with the rest of the money to pay for insurance, license. Yeah, I think you do the side jobs and you come up with the rest of the money to pay cash without using the 401K. Because if you cash the money out of the 401K, they're going to charge you a penalty plus your tax rate, and you're going to get hit upward of 30% of that money is going to be taken by the government. And so we don't tell people to cash out a 401k for anything except to avoid bankruptcy or foreclosure, and that's not where you are.

The good news about you, Ernesto, is you're not afraid of hard work. And you know how to go out there, scratch and claw, hustle and grind, and come up with some money. And you're most of the way towards your goal, and you just need to scrape together a few more nickels. You're getting close. Leave the 401k alone, but yeah, use the mattress money, use the other money, use any money we can get.

Roll the nickels out of the corner of the couch, baby. Let's get her done. I'm with you. Let's get this truck purchased. And if there's a way you could buy a cheaper truck, like 25 instead of 35, that'd be a cool thing, too, get you there that much faster. And that's the direction I would go. Hey, good question.

Thank you for joining us. Open phones at 888-825-5225. Danita is on YouTube and says, Dave, I'm a baby step two. I'm in baby step two, but I keep hearing that I should get life insurance separate from my employer. I have a six-year-old. Should I do that now or wait? It's going to take me 36 months to get through baby step two.

Well, the problem with having your term life insurance only at your employer is if you leave after you've had a diagnosis, you might not be able to get insurance. And that's why we tell you not to have only insurance at your employer. So if you had a cancer scare or you got diabetes or something like that while you're there and you leave, you lose the insurance at the employer and you can't get more insurance. So it's always good to have insurance outside of your employer. This is the Dave Ramsey Show. Thank you. Thanks for joining us. Abby is on the line in Tampa, Florida. Welcome to the Dave Ramsey Show, Abby. Thank you. Thank you for taking my call.

Sure. What's up? So I have a money slash career question. I'm 25 years old. I'm not married or have kids. I'm on baby step four. And I just need advice about my current job. So I'm currently in sales and I make a decent base salary. I haven't seen much commission come through just because I've only been in the role for about eight months. But I drive about 300 miles a day. That being said, I love my car and I don't know when the next time I'll be able to buy a car is. So I do have a job opportunity.

It's a manager position at a local boutique gym. So it's kind of like Orange Theory, but it's just starting out. The only thing is the base salary is about half of what I'm making. And with the commission and bonuses they're expecting me to make about what I make right now, but I know that that's a huge risk. So, I mean, eventually I want to buy a house and all that. Stop, stop, stop, stop, stop. So are you spending nights on the road?

No. No. Okay, so you're just out and back running all over the place. Correct. Yeah, because you're putting like 75,000 miles a year on your car. You understand that, right? That's right. That's about where I'm at.

Okay, so whatever you drive, you are destroying its value as a part of this job. Correct. So if you drive a $15,000 car in one year, it's worth $5,000 because of what you're doing to it. If you drive a $10,000 car in one year, it's worth $3,000 because of what you're doing to it. So that's a cost of you with having this job. Okay. So the job you're currently at as a base pay of what? $50,000.

Okay. And they're talking about $25,000 at the gym. Correct. Okay. That000. Okay. And they're talking about $25,000 at the gym. Correct. Okay. That sucks. Yeah. That is not a good offer. Okay.

You currently have a job of $50,000 a year, but you're losing $10,000, so you're netting $40,000 after your vehicle expense. But you also may have commission on top of that. What do you anticipate your commissions being on top of that uh projected wise i should be at 65 000 um after my first year okay all right and so um yeah and what are you doing now in sales selling what it's it's uh really selling a service we work with ups okay and so you're going to businesses correct so businesses around you know my territory which ranges is one of the biggest territories in the country so okay it's a lot of miles yeah it is okay so one of your expenses is you're going to destroy a car every two years and have to replace it,

and you have to save to replace it. I don't know when I'm going to get a new car. It's not a plan. You are going to destroy this vehicle's value. In two years, you're going to put 150,000 miles on it. If 300 miles a week is accurate. Okay. Did you say it? You said a day is accurate okay did you say it you said a day oh i'm sorry yeah it's between two and three hundred miles a day a day yeah okay but that's 75 000 miles a year 260 working days okay so uh yeah that that's so you have to as a part of having this job, systematically save to replace your car with cash every two years.

So you need to be saving $600 a month for your car replacement, where you can buy a new car every two years. Okay? Okay. But even with that, there's no way you take this other job now if you don't like the sales job you're in or you don't like the people or you don't like what you're doing and you want to be in the gym business instead that's fine let's look around for something but i wouldn't take a job at 25 when i've got a job making 50 headed towards 65 with a new company that we don't even know is going to make it right yeah if they offered you 100 with a new company that we didn't know was

going to make it we might try that but we don't take a pay cut with a company new company that we don't i mean there's no much there's not that much romance in a gym no thank you does that make sense now again i think you start asking yourself i think this has caused you to say i might have an itch in the career area and i need to scratch and so you start asking yourself hey i'm 25 what do i want to be doing when i'm 35 what i want to be doing when i'm 45 and what are my steps to take to become one of those and if you want to own your own gym or something like that, if that's really your long-term goal, then let's start taking some steps that way. But one of the steps is not pay cut in half with a new operation that might not make it anyway.

Right. So even if the commission structure, you know, were pretty comparable, I'm not comfortable. It's not even open. the commission structure, you know, were pretty comfortable that they were predicting. I'm not comfortable. It's not even open. Yeah. Their projection on their commission structure is what's known as a guess. Right.

That's a guess. I'm not comfortable with that at all. Okay. I mean, I wouldn't take it. Now, if they're so comfortable with it, why don't they just pay you $50? Well, that's what I was wondering, too. Yeah. They're not because they're not comfortable with it. Besides that just pay you 50 well that's what i was wondering too yeah they're not because they're not comfortable with it besides that they're brand new i don't even know if they can pay the 50 right i don't even know if they're going to stay open i mean jim jim's

closed like every 20 seconds right about the only about the only thing with a higher failure rates restaurants okay so um nah i wouldn't do that now would i but but i think what this does what this conversation you've been having inside your head and with your friends that are opening the gym does is it tells you maybe the job you've got is not nirvana right maybe it is time to start kind of thinking about what do i want to be when i'm 45 and what are the steps for me to take to get there if you're going to stay in your current job though start saving for car replacement because you got to buy a car every two years okay okay definitely and and so with that being said do you think that you know sales and saving up money is the right way to go if that's something that i

want or do you should i focus on a car and keeping you know the car i have i mean it's only three years old so what's the car you've got worth uh i'm i the last time i checked it was like 28 i'd probably sell that because you're gonna you're destroying it yeah if it's still worth 28 i mean what do you want to destroy a ten thousand dollar car or twenty eight thousand dollar car ten thousand yeah i mean it's a business decision because it's a business it's a cost of you doing business if you stay in that job but if you really like your car and you're going to change jobs anyway drive it a couple more months while you're making your decision on what you're going to do because

you might have a different job that makes 50 or 60 and a whole different career other than we've talked about today, right? That does not have miles driven, does not have miles driven. So it might be that the answer to your job equation is not A or B, but C, none of the above. Okay. Does that make sense? Yes. Thank you very much. Hey, thank you for the call. Okay. Does that make sense? Yes.

Thank you very much. Hey, thank you for the call. I appreciate you joining us. You're a sharp young lady. I think you're going to do very, very well. I'm proud of you. Open phones at 888-825-5225. Jim is on Twitter.

Dave, I'm a landlord, and I know you are too. What service do you recommend for rental background checks? I don't do it. My son-in-law runs our property management company, and I have no idea who we use. I mean, I know we physically do, or not physically, we do our own check off the application, but we run with a service, and I actually don't know which one it is. What I would do is just price them out and look at what they'd cost and what they give you for what they cost.

And I'm going to, I don't want to pay much for that a minimal amount for background check because mainly I'm going to do a tenant interview and I'm going to check the references that are on their application. And that tenant interview and checking those references and looking at their finances and can they pay the rent and the feeling you get from interviewing them in depth as if you were hiring them for a job not just moving in your house oh by the way you are hiring from them for a job because they're paying rent that's their job um yeah that's how I'm treating this. And that solves a whole lot of problems that a background check really won't bring forth.

And always check with the landlord before their current landlord, because their current landlord might say anything to get rid of them when you're doing background. When you're doing reference checks on tenants, check two back. Now, that helps, too. That puts us out of the Dave Ramsey Show in the books. Hey, it's Kelly, associate producer and phone screener for the Dave Ramsey Show. This episode is over, but if you heard about a product or service and didn't have a chance to write it down, don't worry. We list everything that is mentioned during this episode in the podcast show notes section.

Thanks for listening.