The Ramsey Show - App - Don’t Fall Asleep at the Wheel! (Hour 3)

Episode Date: July 8, 2019

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Live from the headquarters of Ramsey Solutions, broadcasting from the Daugherty Car Rental Studios, it's the Dave Ramsey Show, where debt is done, 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. Melissa starts us off this hour in Fort Worth, Texas. Hi, Melissa. How are you? I'm doing pretty good. How about yourself?

Better than I deserve. What's up? Well, me and my husband, we currently relocated to Fort Worth, Texas. We're living with my parents in their house. We live from Dayton, Ohio. My husband just started a new job and I work part-time. We have a small child that's almost three months. Our annual take-home pay is roughly about $38,000. Now, my question is, my husband's an immigrant, and we're about to start the process for getting his papers fixed so he can become a resident. So, the total cost for that is roughly $7,500. I also want to start college, but, you know, obviously, it's going to have to be after that so how would we go about

prioritizing we don't have any of the baby steps done i do have a thousand dollars to start the process to get his papers fixed so should we throw that to our emergency fund or should we get his papers fixed you know start the first step and then get our baby steps in order well my guess is your life is going to be dramatically disrupted if you don't get the papers done so that would be a priority wasn't it yeah yeah so that's got to happen before anything like like your hair's on fire like everybody is working extra jobs everywhere all the time until we get this problem solved because if he gets deported this changes your whole world yeah so you fix this as soon as possible right it's a process and it takes some money and it

takes some time i mean i don't want you to panic about it but you're asking me about prioritization and that's by far a higher priority so when you wanted to go back to school this would be of course after you're out of debt and after you've um moved out of your parents house right yes sir okay and what were you going to study and why well i'm not exactly sure in my field of study. I'm 20 years old. Me and my husband have a little bit of an age gap. He's 35. I've not gone to college for anything, and right now with having a small child,

it kind of makes it a little bit more difficult. But I want to do something that will help people and that will be satisfying but also, you know, has good pay. Yeah, that sounds like a good plan. It sounds like you're a ways away. You've got to figure out a lot. You've got to really dial in on what you want to do, and you've got to save up the money to do it. In the meantime, you're probably working a job, and he's working a job,

and you get your debts paid off, and you get his papers covered, and then you pile up some cash. By then, you may have honed in on really what you want to do. Because right now what you've got is, I want to help people make money. That's pretty vague. Okay. It's okay. There's nothing wrong with that.

You're 20. You've got time to figure it out. But I would not go to school under, I want to help people make money. I want you to dial it in. It's too dead gum expensive and too much trouble. And you've got a brand new baby. You said your baby's only three months old, right? Yes. Yeah yeah yeah so you got a brand new baby right now you're dealing with too so it's okay take your time but i want him to work like six jobs and if you can pick up something you

can do from home while you're taking care of your baby that'd be great uh and let's pile up that money and get his paperwork done and then let's pile up some money and get these debts paid off. Because if you're sitting there with him secure in his citizenship process and with no debt and with an emergency fund in place, by then your baby's a little older and you're starting to think about exactly what it is you really want to do every day. Because you can be a teacher, you can be a nurse, I mean, you can be a doctor, you can be a teacher you could be a nurse i mean you can be a doctor you can be a lawyer i don't care uh all of those things make money and help people by the way so it's just a matter of what god's called you to and what your giftings are and those kinds of things and you'll probably spend some time discovering that before you spend money on

college in your case hey thanks, thanks for the call. Ann is with us in Asheville, North Carolina. Hi, Ann. Welcome to the Dave Ramsey Show. Hello. Hey, what's up? I borrowed money for down payment on my home against my retirement. Oh, crap.

And through some stupidity and some stupid maneuvers, I have managed to default. Of course, the loan is paid because it came out of my retirement. Yeah, so you've got a huge penalty and a big tax bill. Well, I don't even know what it is yet. This all just happened, and I don't know where to start. Okay. You need to get some tax advice. Sit down with a tax professional and prepare for the storm that's coming.

So what was the size of this loan? Originally, it was around $25,000. How much did you default on? I think it was around $19,000-something. Okay. All right. So you're probably going to have a $5,000 bill. Okay.

That's probably what's coming at you, something like that. And it'll be on next year's taxes, so you've got almost a year to get ready for it. Okay. But let's not stay, you know, this asleep at the wheel thing ain't working for you, so you need to dial this in and be ready for this because it is coming. Oh, yeah, I know. And so, yeah, get some tax advice from a good tax preparer. I doubt there's anything you can do to undo it, but see if there is.

Go to DaveRamsey.com and click on ELP. That stands for Endorsed Local Provider. And click Taxes, and you get the best tax pro in your area to help you. And it's someone that we've vetted, and they'll help you calculate this and tell you how to get ready for this and say, okay, based on what your income is and what came out exactly, here's what you're looking at. You've got a 10% penalty plus your tax rate on that amount of money, and that's going to hit you with next April's filing.

I'm going to guess and tell you five grand but we'll be right around there we'll see but you've got to get ready and then look at um what these look at what happens here and get ready plan plan plan plan plan hey thanks for the call appreciate you joining us. When her question hit me, it stung me because I have done stuff like that. Have you ever done this? This is what she did. Have you ever done this? Because I've done this.

I did what she did. I said a sleep at the wheel where you just don't pay attention and something just kind of lays over in the weeds. And then it explodes. And it, like, shocks you. It's like, suddenly that happened. And yet, it's been laying over there in the weeds. It's not really suddenly. It's not really a shock. It's really crap you knew was over there.

There was a monster in the closet. And you knew he was going to get out eventually. But you're just kind of going along and just ignoring it. Not dealing with stuff that's in the closet, not dealing with the bomb in the weeds, costs me more money, costs you more money. Being asleep at the wheel, not freaking following through, it'll destroy you, man. That's a habit pattern you cannot win with. I tried it for a long time.

Out of sight, out of mind. Yeah, well, it blows up. Because it will catch you. It'll blow up. Put that splinter in your hand and ignore it for about two weeks. Then your finger gets cut off for gangrene. Don't do that. This is the Dave Ramsey Show.

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One hire can change the direction of your company. Post a job today at linkedin.com slash Ramsey and get $50 off your first job post. That's linkedin.com slash ramsey. Terms and conditions apply. Thank you for joining us, America. Ashley's with us in Miami. Hi, Ashley. Welcome to the Dave Ramsey Show. Hi. Thank you for having me.

Sure. How can I help? I have a quick but could be an easy question for you but a little complicated for us. We just started listening to you a few months ago, my my husband and i and we're working on baby step two and we have the majority of our debt is a student is student loans which were mine but now they're ours and um our home and then we do have a car lease that we're trying to figure out what to end up doing with but the question that we have for you is um we since we're in miami we the last hurricane, we incurred damage on our home. We're receiving money from the insurance company to fix a lot of stuff, like inside and outside of the home.

We have an older home, and we're trying to figure out whether we should, while we do this construction that the insurance is paying for, whether we should cash flow just to update the home, not super fancy or anything, not out of this world, just update it enough so we don't have to incur a double renovation later in the future. Yeah. Okay. So what's your household income? We're at $100 right now. Okay.

And how much renovation in addition to the insurance money are we discussing? We were doing the numbers, and it seems to be around $15,000 to $20,000. And how much student loan debt do you have? $140,000. And what's your home worth? Well, our home is worth around $3,9400 right now. Gotcha. Okay.

And how much repairs are being done from the hurricane? The roof, the ceiling. No, I'm talking about money. How much money? I'm not sure of the exact number, but it's around $80. Okay. No, I would not do the repairs. Okay.

I'd do the hurricane repairs with the hurricane check. Here's the thing. How long have you been out of school? Five years. Yeah. Okay. Yeah. But I am not, since we just started listening to you, we made different mistakes that we

probably would have done differently. Yeah, I understand. We all would have. We've all done stupid when we started. Yeah. I stayed home with my little ones. That's all. That's not done.

So I'm now just getting back in. Yeah, that's okay. So what's your career field? I'm an attorney. Oh, good. So you're getting that cranked up now? Yes. I started part-time because I'm transitioning the little ones to school.

So I started part-time from home and then hopefully transition full-time. Good for you. That's a really good plan. I like that part of your plan a lot. The thing is this. I haven't done this for a long long time when you've got a a mount everest of student loan debt it's very tempting emotionally for any of us to push that to the side and try to go on without dealing with it because it seems overwhelming It seems insurmountable.

Because it's been hanging out there for five freaking years over your head. Right? Yeah, it was one of those. And it hadn't moved. It was about the debt repayment. I know, but it hadn't moved. It's just sitting there looking at you. And so you're going, well, I'll never get this house done.

I better get it done. And so you're going, well, I'll never get this house done. I'm better good at it. And it's the way our emotions work, you know. It's like I need to go because it's just never going to. So right now you make $100,000, but you're getting ready to be a lawyer again, part-time and then full-time. And so your household income is going to go up 50% to 100%. You're going to go to $150,000 to $200,000 over the next two or three years. So here's the great news. You're going to be able to renovate your $450,000 house, $15,000 or $20,000 renovation with cash after you're debt-free about three years from now.

Okay. You'll be 100% debt-free. Accept your home. You're going to get rid of the stupid lease car. You're going to pay off $140,000 in debt. You're going to build your emergency fund and then you're going to say 15k or 20k and fix your house up and uh by the way you'll do different repairs then than you would do now yeah because you're not broke anymore right now you're broke yeah we were just going to do basics yeah yeah and you

don't you know you'll be able to do some stuff. If you do the 15 now, my prediction is in three years you're going to do more work anyway. Okay. Probably. So you're going to do the double dip anyway on the renovation stuff. You're not getting away with that one. Yeah. Go ahead and climb Mount Everest. It's begging you to summit it's begging

you the student loan sally may is begging you for an eviction notice yep yep yeah get after her girl get after her we've been kick her ugly butt out of your house she's been hanging around eating your sandwiches for too long. She needs to go away. She's a grouchy old woman. She needs to go away. You can do it.

You can do it. Get after it. I love it. Alright, Rob is with us in Richmond, Virginia. Hey, Rob. welcome to the Dave Ramsey Show. Hey, Dave, how you doing? Better than I deserve. What's up? So I had a question for you.

I started listening to you about a month ago. So I know financing and leasing cars are a no-no. But for right now, with my current work situation, I'm trying to see if financing a cheaper used vehicle would be my only option or if there's a better option other than that. So I was supposed to take a traveling job where I'll be going to different states every three months sometime mid-September. But that got pushed to within three to four weeks from now. And the car I'm currently driving has about 180,000 miles on it. I can't really trust it to get me to New Mexico, California, places like that,

and I don't quite have enough money saved up yet just because of the short notice to buy myself a $6,000, $7,000 car. Why was it short notice? I thought it was last December. What's that? Why was it short notice? I thought it was last December. No, no. The job was supposed to start this coming mid-September. Oh, it started early.

Yes. Oh, I got you. So this coming mid-September is when I'm supposed to start. So tell me the nature of the travel again. Are you traveling in the car every day, all day? So I'll be traveling every three months or so from Virginia to New Mexico, California, Oklahoma. I'm sorry, you're misunderstanding me. Are you just making a drive and then getting out of the car, or are you traveling in the car for a living?

So I'll be traveling in the car for a living, because I'll also be doing home health physical therapy. Okay. And so you're going to be in a different city every night. No. So I'll be in one area for about three months, but from there I'll still be driving within a 15-mile radius five days a week. And the car I currently have is not that reliable. Okay, so if you drive to New Mexico one time and you stay there for three months,

and then you drive to California and you stay there for three months, that's the kind of thing you're talking about, right? Yes, or from there back to Richmond. So you're not exactly traveling for a living. I mean, you're going to be away from home, but you've got a temporary home. You're not out driving the interstate for 500 miles every week. No. No. Okay.

All right. So good. So a $5,000 or $6,000 car will do it, and you have a nothing car now. So what is the pay, and when will you get it? So it's going to fluctuate, but it'll start immediately. I'll be taking net monthly income between $5,000 and $6,000 a month. Great. Okay.

And you don't own anything that you can sell? I have a couple of guitars and an amplifier, but of course those are lower value. I can sell a few things like that. What do you mean? What's the value? I mean, because guitars can be anywhere from $100 to $10,000 or more. So probably around $500 for my guitar, another $400 for the amplifier I have right now. Okay, and your current car is worth $1,000. That'll help. What I was thinking is on my car, do something like that.

And you don't have any cash at all? Right now, I have my $1,000 emergency fund, and I have, other than that, about $5,000 in the bank right now i have my thousand dollar emergency fund and i have other than that about five thousand in the bank right now dude take your five thousand dollars and buy a car why are we having this conversation i need travel expenses we'll go rent a car and rent a dollar rent a car and drive your butt to new me, use what's left of your $5,000 and buy a $4,000 car, and then move up in car in two months. You have the money. 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. Well, if you want rid of your debt once and for all this summer, then you need to read our number one best-selling book, The Total Money Makeover. Sold about 7 million of those puppies. It's on sale today in our online store at DaveRamsey.com for $15.99. Total Money Makeover has helped millions of families get rid of debt and change their lives forever with the simple baby step plan. If you want to know all the details of the baby steps, the baby steps on steroids, it's the Total Money Makeover.

And it lays everything out. It gets right straight to the heart of your money problems and your money solutions. You. So, go to the online store at davramsey.com today pick up the total money makeover 15.99 or call the ramsey concierge team a 888-22-PEACE and they'll help you out 888-227-3223 nikki is in memphis welcome to the Dave Ramsey Show, Nikki. Hi, Dave. I need your stage advice. Thanks.

How can I help? Okay, I'm a newlywed on Baby Step 2, and I recently had a parent pass away. I'm a sole child. And I'm halfway through a three-year program for school psychology, but I don't know, and I live an hour away from the home, and I don't know what to do because I work an hour away. So if I moved back, I'd be commuting like four hours a day. Why would you move back? Just because there's a house there? Well, yeah, the house is paid for, and I'm paying rent.

So I don't know. If I should move back. To pay it. If I should move back. To pay money. No, sell the house. Use the money there. It's in a good, it's in a really good neighborhood. Yeah, what would it sell for? I think it's 55.

It said 55 was the lowest. Yeah, how old are you? 41. How long have you lived in Memphis? All my life. But the house is four hours away. One, one. So you were not raised in this house?

Yes. This is my childhood home, yes. Okay. So one side of Memphis to the other, is that the hour away? Yes. Okay. All right. I live out of state.

I'm sorry. I live out of state. I don't live in Tennessee. I'm sorry. Where do you live? I live in Arkansas. Okay. How long have you lived there?

Four years. Okay. Why did you move there? A job. I got a good job yeah and so why would you move back because there's a house no the same reason that caused you to leave the area is the same reason you sell the house and continue your life that you had planned before your mom passed away your dad passed away whoever was you had absolutely no plans of returning to that area. No.

You don't return to an area for a house. You have a life, and where your life is is where you buy your house. You don't go take a house and build life around it. You follow me? Yes. Sell it. Take the money. Live your your life does that make sense a little bit emotional to do because it's your childhood home though isn't it

it is that makes it hard and that that kind of confuses the issue but here's the thing you're either going to move towards the future you're going to move towards the past and i'm trying to keep you moving towards the future when you left there and moved to arkansas that was the future keeping the house or wanting to move back in the house is the past am i wrong no no all right so i'm i know it's an emotional thing to do but let's just let's look out the windshield and live our life that direction, not on the rearview mirror. The rearview mirror is just for looking back and remembering fondly. But you don't want to go back. That's not the thing.

If you wanted to go back, you should never have left. Ha! There was a reason you left, and so that's what we're going to do. Good question. Thank you for joining us. Matt is in Denver. Hi, Matt. Welcome to the Dave Ramsey Show.

Hi, Dave. It's an honor. Honor to talk to you, sir. How can I help? Well, we were calling with a mortgage question. My wife and I are considering a refinance. We're in Baby Step 2D-ish, and we are currently... What is 2B?

2D, I mean, we're just working our way through. You're almost done with Baby Step 2. We are close. Okay, I know what that means. Okay, cool, good. We'll probably be done with, you know, we have a couple cars and a personal loan that we'll be done with by March of next year, probably. We're right in the middle of it, and we're looking at our mortgage. We mortgaged a brand-new house about a year and a half ago.

At the time, we weren't really paying. I guess just doing it the way we normally would. We took out a first and a second to get it financed. The second is a HELOC, and we're considering converting our mortgage while we're in Baby Step 2 to a 15-year, taking out the HELOC and having one mortgage at a 15-year. Our current mortgage is a 30-year at 3.75. The new one that we're trying to get is 4.25, 15-year, and the HELOC is 6.99. What do you owe on the HELOC?

What? What do you owe on the HELOC? $114. Whoo! Yep. And what's your household income? About $275. Oh, okay. Well, the rule of thumb that we use is that a second mortgage is in baby step two

if it's less than half your annual income. Okay. So we would create this like it's a ridiculous credit card debt and move it into baby step two, which means you're not done in March. You're done the following March. And I would keep my nice little 3 percent mortgage instead of upping what i owe on my first mortgage upping the percentage rate because you're going to go up an interest rate not down yeah no i we that that's what we've been wrestling with yeah i wouldn't do it

despise that second and you can the thing is i don't blame you for despising a second but you make 275 you can pay off 114 okay no that's that's exactly the question we, I don't blame you for despising the second, but you make $275. You can pay off $114. Okay. No, that's exactly the question we wanted. I didn't realize that in your – we've been following you for a while, but we didn't realize that a second should be treated that way. So that answers our question. Yeah, and the good news is you can attack it that way.

That gets rid of the $699. And by the way, back to the last part of it, you've got a 30-year, three-and-some-change interest rate. If you just later on've got a 30-year, 3 and some change interest rate. If you just later on pay that 30 like a 15, it'll pay off in 15. You do not have to refinance it to recalibrate it. Sounds good. We didn't have a settled feeling in our stomach about the new mortgage anyway, so this helps us solve our question.

Great. Thank you for calling in, sir. Open phones at 888-825-5225. Tony's in Chicago. Hi, Tony. How are you? Good. Good afternoon, Mr. Dyer.

How are you? Better than I deserve. How can I help? So I was calling you because I've been following you for a few years now. I feel like me and my wife have definitely been disciplined. We've done our budgeting really well for a while, and we have finished paying off all of our debt. I have a small one left, but I have enough to cover it now, so I'm basically starting my fully funded rainy day fund.

And I found that I need to either buy a house soon or figure something out as far as our income goes because we're having a baby in November. Yay! Thank you so much. That's the first baby? Yes, it is. Oh, cool. What's your household income?

So I make about $50,000. My wife is at about $20,000 right now. Cool. make about 50 my wife is at about 20 right now and the reason why we're looking into buying a house is because she's actually uh we're going to run a business out of it she currently runs her mom's business with her mom it's um daycare and she's not uh able to make more money because her mom's also on some financial issues right now so that's the max that she's going to make right now is 30 000 so we were thinking about buying the house and sort of fully funding the rainy day fund, using that as a down payment and buying the house because if she runs her own, we can take care of it out of the house.

You're not going to listen to me, but I wouldn't do that. You're already too far down the path. You're not only wanting to buy a house with no emergency fund and have absolutely no money, you're willing to start a business and buy a house with absolutely no money and no emergency fund. You are asking for trouble. You're asking for life to kick your teeth in. Do not do this. Slow down, Papa.

You'll be able to take care of this baby. You're going to do just fine. Slow your butt down. Slow down. Get yourself out of debt. Build your emergency fund. Then buy your house. Then save up and start your business. Don't try to do all that on broke people's stuff. You're going to be broker and broker. This is the Dave Ramsey Show. Thank you. Our scripture of the day, Psalm 2418,

The Lord is close to the brokenhearted and saves those who are crushed in spirit. Walter Elliott said, Perseverance is not a long race. It is many short races, one after the other. Brian is with us in Des Moines, Iowa. Hi, Brian. Welcome to the Dave Ramsey Show. Hello.

Just a quick question. I had a mother pass away very recently. My only debt is my house. The mortgage is about $9 000 i'm going to inherit close to 200 000 just was wondering if that would be a good idea to pay that all off at once absolutely okay so just take it and pay it off yeah what's the form of the inheritance uh it's a ira inherited oh my dad had passed away a year and a half before yeah i left one ira to me and my brothers and sister and then the rest of my mom and now we're going to inherit the rest

of that which is sizable well that's all taxable so you'll have to income tax on it but you will have whenever you use it so you're not going to get away from that. Plus, there's mandatory withdrawal on a minor withdrawal that's mandatory anyway. So, yeah, in a heartbeat, I would pay the taxes, pay the mortgage off, and I would invest the rest in something else wherever you are, you know, in your process from there. But, yeah. That's what I've been arguing with my brothers and sisters about, that you're going to have to pay your taxes regardless. Yeah.

Being out of debt is the main thing. All right. That answers my question. Thank you for the call. Open phones at 888-825-5225. Christy is with us calling from China. Really? Oh.

Hello? Hey, you're really calling from China. Well, I'm not calling from China, but'm not calling from china but i'm calling from chattanooga but i live in china oh which is kind of okay okay i got it well it says china on my screen so i just thought you know okay that's funny chattanooga china it's kind of the same okay all right how can i help okay so um i wish this was a quick question, but let me just give you a little bit of background. We did financial peace in 2010, and we paid off all of our debt by moving overseas and working for an international school overseas. So we are debt-free, which is really exciting.

So we've been overseas seven years. We lived in Malaysia. Now we live in Shanghai, China. We are interested in buying a property that we could come back to in the summertime. We have about $25,000 saved, and we have $30,000 in investments and stocks. And we feel like we're ready to purchase something, but we're not sure what type of loan we would get or if that's even a smart decision right now or if we should just keep investing.

How many months a year will you live in it? How many months a year will you live in it? Probably June and July and possibly December because we're on a school year contract. Right. And what would happen to the property the rest of the time, the other 10 months a year? Ideally, we'd like to do some kind of rental property. Okay, so like a resort setting.

I mean, it would be like, I think, an Airbnb-type situation. It's in the North Carolina mountains. Oh, I see. Okay. And what do the property cost? We're looking at $250,000. Okay. And what's your household income? Our household income is about $70,000. And we have no bills over there because our cost of living is paid for. That's awesome. Okay, good. Yeah.

Okay. Well, that's why you've been able to do so well and save so much money. You've done a great job. Well, here's the way I would look at that. Basically, this is your second home. It's like a lake house, a mountain home. If you were living in the States that you're only going to live in two months a year. Okay?

Yes. That's called a toy. Okay. And we pay cash for toys. Okay. So I would save up and pay cash for it. In the meantime, I just rent something for two months when you come home. And for the kind of money we're talking about, $250,000 for two months,

you can rent a lot. Okay. And so, you you know you might do that uh i was talking with some friends this weekend that were very wealthy and had several houses and they've sold them all um they had all these they had like five houses all over the place and um they sold them all off except for one they've got one toy then, you know, one summer top house and then one house. And they got plenty of money. It wasn't that they needed the money. But they just figured out that they were spending all their time dealing with repairmen and with writing checks for stuff that they stayed of money we put in our pocket and we sold it all, we can rent the nicest thing in the world for a week or two at a time and still put hundreds and hundreds of thousands of dollars back in our pocket that we didn't tie up in property.

And so you've got to be pretty wealthy to have toy properties. And this guy's real wealthy. He can handle it. But, you know, he just decided it wasn't it didn't make sense for what he had tied up there you know it's it's really a very very expensive hotel is what it amounts to that's what toy properties are summer homes beach houses mountain houses whatever you want to call them blake houses i got one it's a very expensive toy we use the thing about three months a year and um and we're not there full time during the three months weekends and so forth we were down

there this last weekend i love the place i'm glad i've got it i'm not complaining i'm not whining such problems to have you know but um but you know the truth is that the per hour cost is absurd the part you know you start talking about what you're using it per hour cost is absurd. You start talking about what you're using it per hour. So I would say you definitely got to pay cash, and even then, I might not do it. I might just rent something when you come home. Hey, thanks for the call. Interesting discussion.

Aaron is with us in Chicago. Hi, Aaron. How are you? Good. How are you doing? Better than I deserve. What's up? So I have a lot of student loans right now. I am in

PA school currently for another year. And I also I'm currently leasing my car. I did that before I found you. So, that lease is up in a year. I'm just curious to know your opinion

on what to do at that point or now buy something you pay cash for okay so okay so like the lease goes for another year so if we have the cash to pay it right now would you suggest you probably can't by the time you turn it in you're going to pay the same amount that you would have paid for a year and you gave up the use of the car so you're probably at a break even to go ahead and pay your rental payments for the year and just drive the thing but at that point i would have the cash saved to pay cash for a car okay um also i just got married about a month ago cool and my wife got she just found out she got into nurse practitioner school. Awesome.

And so we have enough cash to cash flow that. Good. But I don't know that we would be able to have enough to do that and potentially buy the car at that point. So what's your household income today? Today we bring home about $3,000 a month. Okay. And what does nurse practitioner school cost? It'll be about $45,000.

And how much money do you all have? Like in savings right now? Mm-hmm. Right about $40,000. Okay. like in savings right now uh right about 40. okay so you need ten thousand dollars between now and one year from now to finish paying for her school and buy a five thousand dollar car why can't you do that um it's 800 bucks a month right you can do that okay yeah we're just we're living really tight now um you need to get on a written budget you're not on that yeah we we just set that up on every dollar yeah good good yeah

that's gonna that's gonna open up things to figure that out you're just starting to work your plan you're gonna have more success than your emotions feel like right now okay okay so one more question too i'm out of time i apologize i'm so sorry i'd love to help you but you guys have a very bright future you got two great careers your cash flow in her school you're going to jump out and pay off the pa school later you're going to have a paid for five thousand dollar car you're going to be in incredible shape that puts us out of the dave ramsey show in the books we'll be back with you before you know it. In the meantime, remember, there's ultimately only one way to financial peace,

and that's to walk daily with the Prince of Peace, Christ Jesus. This is James Childs, producer of the Dave Ramsey Show. Did you know you can now listen to the Dave Ramsey Show on Pandora and Spotify? For all the ways to watch and listen, check out our showcase at DaveRamsey.com slash show.