The Ramsey Show - App - Don't Play the Comparison Game! (Hour 1)

Episode Date: July 3, 2019

Take control of your money once and for all. The Dave Ramsey Show offers up straight talk on life and money. Millions listen in as callers from all walks of life learn how to get out of debt and start building for the future. Check out the fifth most downloaded podcast of 2018!   Tools to get you started: Debt Calculator: http://bit.ly/2QIoSPV Insurance Coverage Checkup: http://bit.ly/2BrqEuo Complete Guide to Budgeting: http://bit.ly/2QEyonc Interview Guide: http://bit.ly/2BuGnZE     Check out other podcasts in the Ramsey Network: http://bit.ly/2JgzaQR 

Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studio, this is The Dave Ramsey Show, where you learn to take control of your money and create a life you love. Filling in for Dave this hour, I am Ramsey personality, Rachel Cruz. And you can call in anywhere in the country. Free call at 888-825-5225 to answer your money questions. So yes, Dave is out for the day. So I am filling in. And as I was looking at all the sheets on the table, there's a lot of things happening, you guys. Here in July, we have a pretty fun 4th of July special deal going on at DaveRamsay.com. And so I know summer, it's a distraction time. Like kids are out of school.

I know my kids, they're not in preschool, so they're home. People out there that have kids in school, you know that it's just chaos. There's camps. There's swim camps. I mean, there's just things going on constantly. So it is easy to get distracted. But don't get distracted on your money. And it's easy to blow the budget in the summer. So stay on course. So right now, we have a 4th of July special where you can save up to 15% off on our life-changing books and tools and bundles at DaveRamsey.com when you use the

coupon code FREEDOM. Use FREEDOM at checkout and you get 15% off some of our great books and tools out there to help you stay motivated, help you stay on track, because again, it can be so easy. I feel like holiday season and summertime are the times that it's just like the budget can go out the window, but stay focused and all of you out there getting out of debt, working the debt snowball, continue it on. It doesn't stop in the summer. There's always vacations and things, again, that can trip you up, but stay on course. So get that 15% off.

Again, coupon code FREEDOM at DaveRamsey.com when you check out. Now, this fall, be looking out, a few of you in these different cities, Austin, Texas, September 12th, we will be there with Financial Peace Live. And Chris Hogan and Anthony O'Neill will be coming to you. Orlando, Florida, September 28th. And Seattle, Washington, October 2nd.

Phoenix, Arizona, October 10th. And Charleston, South Carolina, November 20th. All these events are Financial Peace Live. It's kind of our new take on our smart money events that we've been doing. But since we've been updating Financial Peace University, those of you that are in it currently have been seeing some of the updates.

We've changed the format of the events. And so Chris Hogan, Anthony O'Neill, Dave Ramsey will be partnering with those events, switching out because myself, I will be on maternity leave with baby number three due here in October. So I will not be on the road this fall, but you can hear all those great gentlemen out traveling around. If you want to go see a live event, you can get a ticket there at DaveRamsey.com. And again, call in this hour, free call, 888-825-5225.

So we'll go right to the phones. And this is Debbie from Boston, Massachusetts. Hey, Debbie, welcome to the show. Hi, Rachel. I'm a big fan. Thanks for taking my call. Absolutely. How can I help?

I'm just looking to get your advice. I feel like we have a lot coming at us in the next three to five years, and I want to make sure that we're focusing our efforts correctly. Okay. All right, what do you have coming up? So we have three teenagers. One is starting college in the fall, and another one that's going to be a junior,

and another one that's going to be a sophomore. In college or college or high school? They're in high school. The two younger are in high school. Oh, wow. This one's going to college or high school and they're in high school the two younger in high school oh well this one's going to college wow okay yeah so between 2019 and 2025 we're gonna have to cash for three colleges wow yeah man y'all i'm close together as a mom of two coming on three i'm like i i know probably how you felt about 18, 17 years ago. Exactly. Okay. So the question is what, how to prioritize their college, how to, how to go about college planning. What, what's your question specifically?

Do we even worry about throwing extra money at the house at this point? Or do I just pile up cash just to make sure we get to all the college bills that are going to happen? Cause I have no idea where the two younger ones are going to go, so I don't know if they're going to go, how much I'm going to need. Yeah, for sure. Any of that. And they only, like, we have minimal in their 529s at this point. Okay, you do have some 529s, but they're minimal, you said, not a ton of money in those?

Yep. Okay. Correct. So I'm guessing the way you're talking is that you're out of debt, you guys have an emergency fund in place, and you're funding retirement? Not yet, but that will be done probably within the next six months, the emergency fund. Emergency fund. Okay.

So following the baby steps, which is the tried and true plan, obviously, if you follow what we do. And so getting that three to six months emergency fund, baby step three, taking care of and making sure that you guys are funding retirement after that 15 of your income into retirement are you guys funding anything in retirement now um my husband just got a new job i think he's doing maybe six percent to start okay um i figured we'd adjust that once i figured out everything else sure sure no absolutely okay so again your first priority is to take care of you guys and the kids will come later because here's the deal. You have to have a financial solid ground to stand on because the kids are going to have one way or the other to pay for

college. We'll talk about that in just a second, but I want to make sure you guys have that emergency fund in place again, three to six months of expenses, and then start funding that retirement because retirement is going to happen for you guys, whether you like it or not. I mean, your kids may or may not go to college and they probably will. But again, there's going to be ways that they're gonna be able to pay for it.

But making sure that that 15% is going into retirement and that anything above that. Yes. I say you could help throw at the college and help again, prioritizing. But and the one starting in the fall, I'm assuming he's already accepted and all of that. How is his – is he staying in state?

Are you guys planning on cash-filling that? What's the status of him? Out of state, he got a good amount of scholarships, and the rest we're just going to cash-fill. Okay, awesome, awesome. So, again, priority for you, though, Debbie, you and your husband, is that emergency fund retirement and then helping him because he can get a job, he can get more scholarships, he can do what he can to cash flow college.

And I'm thankful to hear the scholarship word in this conversation because so many people make so many mistakes when it comes to college. And as a parent with your other two coming up, guide them, like I'm assuming you did this first one, but continue to guide them to make these wise choices because I don't want you going into debt for their college and I don't want them going into debt for their college. So staying in state, taking in state tuition, or if you get a great scholarship or grant somewhere, taking advantage of that for sure, but also working and being able to cash flow through the jobs that they're going to get as well.

So it's plans to work. Yes, that's awesome. Awesome. Awesome. So to answer your question, how you prioritize, it's going to be emergency fund retirement and then throwing extra money at the call at his college. And again, since he's already in it, the 529 at that point, it's an investment that you make right to make returns and all of that over years and years. But since he's currently there, helping him with his tuition beyond that is great. And that's a huge blessing. I mean, some people, you know, kind of are like, oh, helping your kids with college,

they should do it all on their own. And sometimes do they need to do it on their own? Because as a parent, you're not in a financial position to help them. Yeah, then sure, they can do it on their own. But man, what a blessing to get yourself in a position where you can help with college. And the student loan crisis, you guys, I mean, trillions of dollars out in student loans. The average student loan is like $36,000 that people owe millions of Americans. I mean, it's an insane problem going on. And so sticking with your kids and helping them make wise decisions is almost as big of a gift as paying for their college. So walking with them as parents.

This is The news, guys. You need to stop and listen. The Fed decided not to raise interest rates. That means you've got a small window of time before rates rise again. Here's the deal. Most people are paying too much interest on their largest expense, their home. So you're freaking crazy if you don't take 10 minutes to call Churchill Mortgage right now and see if they can save you money before rates rise again. A mortgage through Churchill could save you thousands, or better yet, reduce the time until you're debt-free.

Can you imagine how it would feel to no longer have that payment looming over your head every month? Just go to ChurchillMortgage.com or call 888-LOAN-200. Their team of experts will give you more clarity about your options and more peace knowing you're saving significant money in the long run. Call 888-LOAN-200. That's 888-562-6200 or churchillmortgage.com. Welcome back, America, to The Dave Ramsey Show. And it's a free call anywhere in the country at 888-825-5225.

And I am Rachel Cruz, Ramsey personality, filling in for Dave this hour. All right, going to Facebook, there is the official Rachel Cruz community. I always feel funny saying that, the official, the official Rachel Cruz community. It's always so funny saying that. The official. The official Rachel Cruz community. And there's about 20,000 of you in this specific group which we love. I have my show, The Rachel Cruz Show, which we do video versions of on YouTube and Facebook and then we've made it into a podcast. But we get a lot of great feedback from you guys and you're able to ask questions and we're able to poll you and you've kind of just become like my mini research group.

So if you've not joined that and you want to pop on over there because we're in and out of there a lot asking you guys questions and kind of hanging out there. And so you all have questions in that community a lot. So Ashley from the Rachel, official Rachel crew show community asks, I'm a free spirit who is going solo through the baby steps. I don't struggle with creating a budget, but I do struggle with keeping to it. I attempted the envelope system this month for the first time and failed miserably. Any suggestions on how I can stay on track? Ashley, listen, it was your first month, girl. You're okay. We always say the budget takes

about 90 days for it to work. Give yourself some grace. Give yourself some grace. Everyone's so hard on each other that they can be so hard on themselves. And it's not going to work also if your budget does not reflect your lifestyle. So as a single gal, look and say, okay, do I have enough money to support the things that I want to live out? What I want to do? Where I spend my time? Now, if you're getting out of debt, obviously you're going to cut some things out of the budget pretty quickly, but make sure it reflects your lifestyle. That's the key to winning with the budget. Make sure it reflects your lifestyle. All right, going to the phones. Melinda from San Antonio, Texas. Hey, Melinda, welcome to the show. Hey, Rachel. Thanks for taking my call. I'm super excited to talk to you.

Oh, good. Absolutely. Well, how can I help? We are currently on baby step number three, saving for our emergency savings. And we're just going to end it. We're going to reach our goal of our savings by the end of the year in December. Now, me and my husband are kind of in a predicament where he just wants to go right into baby step number four and start investing 15%, where I kind of want to take a few months, about six to eight months to save and buy new furniture for our house. You know, we have a lot of furniture that we got from college, things that were given to us by family,

and I feel like that can be a good point for us to really just splurge on ourselves for a little bit before we dive into investing. And we'll also be saving for my nursing school tuition so i just wanted to see what your thoughts were okay the last part say that again whose school tuition are you going to be saving for uh nursing okay nursing school okay um so in the in the relationship melinda are you more of a free spirit and spender okay yes. I figured so because I can relate to you. That's why I was catching on to that. Okay, so after Baby Step 3, which all of you listening that are not familiar with Baby Steps,

after Baby Step 3 means you are out of debt and you have a fully funded emergency fund. Now, during those times, we say foot is on the pedal. You are intense. You're sacrificing lifestyle. You're getting out of debt. You're getting that emergency fund. And then once you get that is when you can kind of loosen up a little bit, take your foot off the pedal a little bit and say, okay, now we can breathe.

Now we can kind of go back to a quote-unquote normal life, if you will, but while still funding retirement and all those things. So what I don't want, Melinda, is for you guys to miss out on some retirement investing, because the sooner you do that, compound interest obviously is your friend. And so you do want to focus on that. But this is the time where you can set money aside and say, you know what, maybe we're going to pause saving for the tuition. Maybe we're going to go ahead and just do our 15% and then save the extra that we have, any extra income,

towards furniture. But this is the point where, yes, you can save up and pay for furniture 100%. Obviously, you want to cash flow it and do that. Is that your main goal is furniture? Yeah. Bedroom sets, a new couch, a new table would be awesome. So we kind of priced it out

and it'll take about six months for us to save all that we want. And then we can just jump right into saving for nursing school from there. Sure. So is that six months of saving for furniture include 15% of your income going into retirement? No, that's without putting anything in retirement. And right now we are putting 5%. And at my husband's employment, they match the 5%. So we're kind of saving 10 as of right now.

Sure, sure, doing that. Okay. Yeah, so I would say for you guys, find that happy medium. I mean, just say maybe for three months we save aggressively for furniture, but then we want to start investing into retirement three months later, maybe cut the timeline in half. One that you guys can get on the same page, because that's going to be the key, too, is that you both agree to this plan.

But I would be okay if you say, okay, you know what? For three months, we're going to just save up some cash, get things that we want to get like furniture, but then don't lag, obviously. And I would not wait longer than six months to fund retirement. But you guys are on a good plan. You're motivated. How much do you make a year? I'm just curious. About $80,000. Okay. So, yeah, you guys are on a good plan. You're motivated. How much do you make a year? I'm just curious.

About $80,000. Okay. So, yeah, you guys are in a great spot. So, yeah, I think for sure, take a little time, save up for that furniture, the things that you want, and then go into retirement. And whatever that timeline is, you guys agree on. But I'm okay waiting a few months just to save up for furniture. Because, again, this is the celebration part.

This is the part where you get to say, I get to live like no one else. So later I get to live and give like no one else. And it's interesting, the people that, there is this struggle that once people get out of debt, and even though they have their emergency fund in place, it is still hard to spend money because there still can be this fear in some people of, I don't want to go back.

I don't want to go backwards. I don't want to go backwards. Like, I want to make sure that we are good and that they have that security. So that is, it's a real thing. It is a real thing. All right, up next is Abby from Phoenix, Arizona. Hey, Abby, welcome to the show. Hey, Rachel, how are you? I'm doing great.

How can I help? So my husband and I, we're in our early 20s. It's been about one year into baby step two. Okay. And we're having problems. My husband has some serious FOMO. He is definitely the free spirit and the extroverted outgoing one. And our friends are kind of giving us a hard time now that we're a year in.

They're asking us, oh, why don't you guys want to go out with us? And, you know, why aren't you guys saying yes to all of these things? Yep. And he's definitely struggling with us? And, you know, why aren't you guys saying yes to all of these things? And he's definitely struggling with that because he doesn't want, he feels like, you know, we don't have kids now, so he doesn't want to waste our time in our 20s, you know, not enjoying it. But at the same time, my perspective is that we are putting in the work now so we can enjoy the rest of our life. Yes, absolutely.

Okay, how much do you guys make a year? Our base is 80, and then with overtime and bonuses, we make about 100. 100. And how how much do you guys make a year? Our base is $80,000, and then with overtime and bonuses, we make about $100,000. $100,000. And how much debt do you have? About $100,000. Left after the year of working it? Yeah, so my husband, I'm a teacher, and my husband was working in construction, and he just wasn't making much money.

And so our first year, we paid off like $25,000. It wasn't very much. But now that he has his new job, we are going paid off like $25,000. It wasn't very much. But now that he has his new job, we are going to estimate about $50,000 a year in debt payoff. So a little more years. Yeah, that's awesome. That's what I was thinking. I was like, man, you could live on $40,000, $50,000, pay this off in two years. That's really what we were used to living on before. My husband had lost his job. We were living on that for a little while. And then he had his new job. We've been spending every extra penny for debt. Yeah, that's awesome. Well, I think you guys are

on the right track. I mean, the math works out super well in your favor, considering that you're not, it's not like you're going from a super high lifestyle and you're having to sacrifice it. You're kind of living as you were living, which is a huge blessing. Honestly, that kind of makes it easier. And for you guys to map it out. And in two years, like, this is what I would tell him, Abby. And I'm the free spirit. So I'm more on his team than probably yours. So I feel his pain because I'm like, I want to go do stuff all the time. But I think back, I'm like, two years flies by.

Like, it's insane how fast that time goes. And this does not mean that you guys are not going to be able to do anything with friends. You can budget a little bit of money. Now, most of it will be going towards the debt but say hey we're going to pick one or two things a month we're going to budget a small amount of money for them so we can say yes to those things that are the inexpensive the free ones hanging out with friends i mean half the time doesn't cost anything you could just go over to someone's house bring dinner i mean like the social part can still be there but obviously some things you're going to have to say no to. But the short-term sacrifice for long-term gain.

And there's a point, Abby, that I would be hard on him and say, hey, dude, you have to grow up. There's a sign of maturity here that you have to feel the sacrifice in order to get. And I'm telling you, those two years are going to fly. This is the time to do it. Sacrifice, sacrifice, and get out of debt. This is The Dave Ramsey Show. I am Rachel Cruz filling in for Dave this hour. And it's a free call anywhere in the country at triple eight,

eight, two, five, five, two, two, five. So there was,

um, a very interesting slash disturbing slash. However you want to put the adjective in a article that came out in the New York times. And I'm like, you just can't make this stuff up, you guys. You can't make this stuff up. This entire article was talking about, they interviewed two different couples

who had terrible honeymoons all because of Instagram. Yes. The title of the article is honeymoon hashtag hell and i wrote a whole book on comparison living called love your life not theirs it came out i guess about four years ago now is that right was it four i guess it's been four years um and the comparison social media trends had been popping up for sure five-ish years ago when I was writing it. Now, it's at a whole new level. I'm literally like, I don't think I sold any copies of that book.

I don't know if I helped anyone with their comparison problem because it is rampant. We all struggle with comparison. We all struggle with this idea of we have this need to care about what people think. I mean, that's innate in the human spirit and who we are. But there's a healthy side to it and there's a super unhealthy side. And I don't want to blame social media, but I do think it's the vehicle that takes us down this road of comparison because the old saying that, you know, keeping up with the Joneses, keeping up with the Joneses 30, 40 years ago, you actually had to see the Joneses in person to compare your life to them.

Like you had to see them pull their new car into the driveway. You had to see them at a party or at church. Like you had to see them with your own two eyes in person to compare your life to them. Where fast forward today, 2019, you carry the Joneses around you in your back pocket on your phone and you're seeing every glimpse of their life. And some people are over sharers and they share everything about their life. And usually it's the best parts, right? I mean, we always laugh and say social media is everyone's highlight reel. It is the best part of everyone's life. And not to be Debbie Downer in this whole subject,

but when I take the stats of Americans and their money today, that 78% of Americans live paycheck to paycheck, means the majority of people are broke in our country today. They live paycheck to paycheck, literally paycheck to paycheck. So you see this and it's like, man, people are not able to afford the life that you're seeing. And so the Joneses are broke. And when you compare your life to broke people, it keeps you broke.

And so why we play this game of comparison living is it's beyond me and i'm and i've been stuck in it too you guys like i'm guilty of it too but this article in the new york times was talking about these two couples one was in 2014 they went to aruba on their honeymoon and this is what the guy said he said the entire honeymoon was like a photo shoot for some magazine that would never exist. He described the week-long vacation with his new wife, Natasha Smith, as a sunset nightmare because of how many dang sunsets she made him take photos of her in front of. And she said, as a digital marketer, she 34 years old, I had to prove to the world that I was having a great time on my honeymoon. And so she spent half of her days shooting, editing and planning Instagram posts. Yeah. The knot, according to the knot.com survey in 2016, 70%, seven out of 10 brides

post on social media throughout their honeymoon. And they had an expert come into the article and talk about how couples want validation from their followers and their friends and how social media can be a great part of your honeymoon to keep up with family and friends but sometimes it can turn disastrous and so this couple they go on and on and on and on about what a terrible honeymoon they had because of her I mean it was her that's what the article is saying and she's she's not denying I'm shocked that they were even interviewed for this article but and she's talking about how miserable their honeymoon was so they came back from their honeymoon and they almost separated because of this and they said it wasn't just because the instagram photos but other things and i'm like uh yeah we all have

major there's major problems major problems when your only motivation on your honeymoon is to take instagram photos but you guys that's the world we live in and then there was another couple they interviewed that they could have spent two weeks in the countryside in England or somewhere where they like they both loved. But it just she went through her mind and thoughts literally was motivated by the idea that it would not have a great aesthetic look on Instagram. And so they decided to spend not two weeks away that they could afford it in the country. No, they spent five days in Italy because it's the only thing they could afford. And they ended up in some terrible apartment, but they rented and they didn't have air conditioning, but all the restaurants they went to, she had to make sure that there was great items on the menu.

I mean, it was just, it was insane. I literally was reading this. I'm like, you can't make this up. You can't make this up. And I'd like to think that people are not that shallow and that crazy, but they are. And so

it's just a wake up call to say, you may not be that, that insane. I pray you're not. But, but, but all there's a small percentage of that, that drives us in our motivation of why we buy things, why we feel like we need a certain level of lifestyle, what we post. And so it's just a warning to you guys that social media cannot be your motivator. Other people cannot be your motivator of doing why you do the things you do. Because if you care what people think, it's going to be really hard for you to sacrifice your lifestyle and go down in lifestyle to pay off debt. It's really hard for you to become content. It's going to be really hard for you to give when you just care what other people think all the time. I was talking to my dad about this because I'm writing about some of this in

my new book, which is not announced yet. I don't even know if I'm supposed to say that. I'm just currently writing it before the baby comes in October. But there's so much motivation of fear of what people think that it runs so deep. And I remember my dad was like, you know, that just snapped out of me when I filed bankruptcy. I suddenly, that was my moment God gave me of like, I don't care what people think. And there's a place you have to get to that. Like when other people are your motivation, when that's your external motivation to buy the things you buy, live the lifestyle you live, make the choices you make, you're probably statistically going to end up broke or stay broke if you are. And you're going to be a rat in a wheel for the rest of your life, running, running,

running, running, and never truly finding happiness or contentment versus the other side of the spectrum, a healthier side of that internal motivation of doing things for the good of you and your family and others and what you're doing to prosper your life that may look sacrificial in the moment because you'll be sacrificing your lifestyle some, but man, coming out of that

and being able to live a life where you are debt-free because you have sacrificed and you have an emergency fund. You actually didn't go on vacation. Instead, you saved up and you had money in the bank in an emergency when things happen. Because guess what? Things are going to happen. You're going to need money for things like medical expenses, a car breaking down, someone losing their job. Stuff is going to happen. And so making these smart choices on the front end that betters you, betters your family and where you guys are at.

It's the way to live. I'm telling you this whole Instagram life, this whole social media life, that that is our motivation. That is where we live and breathe and where we find the things that we want in life. It is empty, empty, empty. So this comparison living, I thought, well, maybe it'll, after I wrote the book, I remember Love Your Life Not Theirs, I was like, okay, you know, hopefully it'll get a little bit better.

Because comparison, it steals your joy, it steals your paycheck, it steals so much. But no, fast forward to 2019, it's like become more rampant than what I was even expecting. So I just read that article and I thought, oh my gosh, anyone going on a honeymoon this summer, please just don't post. Like what if you literally lived your life where you thought no one else is going to see these pictures? How does that change? How does that change the way you live your life and your relationships and being in the present

versus focusing on what other people are going to see. So this comparison living, it's no good, you guys. Not good and it keeps you broke. I'm telling you. This is The Dave Ramsey Show. Thank you. Welcome back, America, to The Dave Ramsey Show. I am Ramsey personality, Rachel Cruz, filling in for Dave this hour. Now, if you've not checked out The Rachel Cruz Show, you can do so on YouTube and Facebook. And we actually have a podcast as well called The Rachel Cruze Show. So wherever you listen to podcasts, you can jump over there.

We talk a lot about life and money, everything from this show of getting out of debt and budgeting to lifestyle and grocery shopping to all the above, all the above. And we have really fun guests on and i'm actually about to go uh tape two segments of that right after i get off the air here and so that's uh some new fun content as well so if you're needing more motivation and staying on track make sure to check that out all right allison from facebook from the official rachel crew show community asks it's our daughter's first birthday this summer, and we're planning a backyard pool party at my dad's house. Any other tips to help cut costs?

Well, that's a great one. Well, from the rant we were just talking about last segment, make sure your motivation for the kid's party is for the kid. But the first birthday, I mean, it's for the parents. Let's just be honest. I've had two little ones, and it is. They don't know what's going on, so don't spend a ton. I mean, we learned that with Amelia, our first. We did not go crazy by any means, but we definitely spent less on Caroline's birthday, the second one. Poor second. I'm a middle child. I know. I know all the

terrible stuff that happens to middle children. I get it. But you will learn that, yeah, it's more for you, Allison, and your memories than your daughters. So I would say it's great you're having it at your dad's house. I mean, I'm not a party planner, but a couple of things that come to mind is like bake the cake. Like don't go get it professionally done. That's a great way to cut costs. Just, you know, buy a box cake and make it and you're good to go.

Don't overbuy on presents because if you have grandparents coming or friends, they're going to be bringing some gifts along, which is great. But don't, for you, overbuy because you're going to be throwing half that crap away in like six months anyways. Trust me. I know. And then another thing, I've learned this during kids' birthday parties, is don't plan

it during mealtime. This will save you money. We made the mistake of doing Amelia's over a dinner. And so we had to bring in pizza and food and all this stuff to feed people because it was like right in the middle of dinner. I'm like, why did we do that? And so we've learned to do like afternoon parties. So you just have like snacks. So you're not providing a big lunch or a big dinner. And that, my friend, that food cost, that will save you money. But, yeah, great tactical question, Allison. But the first birthday sweets, it's fun. Enjoy it.

I'm kind of giving you a hard time on it, but, like, it is. It's fun. It's a good milestone to have for sure. All right, coming up next is Sarah from Boise, Idaho. Hey, Sarah, welcome to the show. Hi, thanks for having me. So my question is, I've recently been admitted into law school, and I have a really great opportunity to continue working at my job full-time

and go to school part-time, and my job will actually reimburse me a small amount. My concern is that it will take about five years to complete if I do that route and cash flow. And my concern is just the total take on myself and my family. It would require me to pretty much be working late into the evening two or three days a week for five years. Okay, to be able to cash flow. What's your current job now? So I'm in clinical research now, and that option would allow me to cash flow it.

Alternatively, I deferred for a year so I can save up. So alternatively, I could save up for the first year at least, and I would have enough to cover the first year. And I've been told, like, if I perform well enough the first year, that I may be able to get scholarships to cover the second and third year, which would allow me to finish in three years. But obviously it's a risk. Yeah, for sure.

And you're getting your law degree, obviously, because you want to. What's your goal? Five years after you get this degree, what's your goal, career goal? So I still am staying in research, something in health care, health care law, research law, something along those lines. Okay. And you have to have a degree. You have to go to law school and get the degree in order to do the next step in your career that you want to do. I don't have to, but it would make it a whole lot easier. There are a few people who don't have degrees who are in the field,

but they're very limited on what they can do and how many responsibilities they can maintain. Okay, for sure. Well, Sarah, I'm encouraged, number one, because you're talking about cash flowing, which is the only option I would give you. I would say absolutely no if it included borrowing money to go back. But when it comes to medical school, law school,

even getting your master's, there's a lot of programs, which it sounds like you have a great job that's going to help you cash flow. So this may not be a great option for you. But going and looking and seeing what internships, what things can you be doing at the school to be reimbursed as well? Are there other avenues that you can take for them to help pay for that school so i would look at every option available and then i mean i think for you sarah it's up to you i mean the fact that you could possibly still do the job without the degree makes me want to say okay i'm gonna i'm gonna work my butt off and try to figure out how can i continue to do what i love to do without having to spend five years of my life in school and be able to save all that money

you would be paying for law school and continue down that road and look at that option. I mean, that's the one I would gravitate toward the most is just to look to see, okay, how can I do this without this degree? But if you still choose to step in and do the degree, obviously you want to cash flow, like you said, and it's going to have to be a personal choice that hopefully the whole three-year path thing is going to work out. That if you do well your first year, you get scholarships and grants, like you said. And you'll be able to get done in three years. But it's up to you. And do you want to spend five years of your life, Sarah, going to school?

And the answer could be yeah. I mean, that sacrifice is worth it to me because on the back end, this is what i'm going to get to do with my job and my life and this is the income that's gonna i'm gonna produce from getting from taking this investment of going back to school um but looking at all of your options but uh at that point it's a personal choice as long as you're cash flowing it it's kind of like what do you want to do um but from what i'm hearing and if i were in your shoes the fact that people are doing the job you want to do? But from what I'm hearing, and if I were in your shoes, the fact that people are doing the job you want to do without a law degree, without a degree of going to law school,

I would find my way of, gosh, what can I do? Who can I meet? Who can I get in contact with so I don't have to go to school for those five years, pay for that degree, and still have the same job of someone next to me? So that's what I would look at. School's hard, you guys. I mean, it is. The whole college discussion, we talked about it

a little bit earlier in an earlier segment, but you have to be wise about your investment, what you're putting in and making sure, especially for undergrad, that you're not getting some degree that has no marketplace value. You can't make anything with it with what you're putting into it um making sure you're being smart on that end and then and then if you want to go get an advanced degree making sure you're being smart on that investment as well is it going to pay off are you is it required to have a job you really want is it going to provide the income that makes sense with the investment you're putting in and so there's um a lot of people that just believe, I'm just going to, we just got to get education. Just go, go, go, go.

But that's not always the answer. You need to look at all of your options. All right. Coming up next is Mary from Kansas City. Hey, Mary, welcome to the show. Hello. Hey, Mary, welcome to the show. Hey.

Hi. Hi. How can I help? Hi. Hi. How can I help? Hi. So I'm in a bit of a mess with my student loan situation. And also, I want to know, is it wise to finish my degree? Okay. So what's your student loan situation?

So I have about $300,000 in debt total. Most of it is from student loans. Okay. What's your degree in? I have a master's in neuroscience, and I did coursework towards an MD, but I didn't finish. Okay. So you didn't get the degree, the MD?

No. $300,000. Okay. How much are you making right now? Yeah. So it's about $80,000 with my income and my husband's combined. Okay. Is your job in what you got your degree in? It's actually in healthcare administration. Okay. Oh, Mary, it's a big number yes it's a big number my question is is it is it wise to find a way to like finish my degree even if it costs me like a little bit more and then go into like a high paying specialty okay well i'm gonna have to answer really quickly for you. It's worth finishing your degree if you can cash flow it. But I would work on paying off that $300,000 step by step, doing the baby steps, getting an extra job, getting that mess cleaned up.

Mary, I'm sorry that was a quick answer for you. I took you at the very, very end of this hour. But man, that's a tough situation. But work your way out. And I would say get a job, get that income up and start attacking that 300 grand immediately. All right. Thanks to producer James Childs and associate producer Kelly Daniel and you America.

This is the Dave Ramsey Show. Hey, it's Kelly, associate producer and phone screener for the Dave Ramsey Show. If you would like to do your debt-free scream live on the show, make sure you visit DaveRamsey.com slash show and register. We would love for you to come to Nashville and tell Dave your story.