The Ramsey Show - App - Don't Wait for Things to Happen - MAKE Them Happen! (Hour 3)

Episode Date: April 6, 2020

Anthony ONeal, Debt, Retirement 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 

Music 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, Anthony O'Neill, Ramsey personality, number one best-selling author of the book Debt-Free Degree, joins me today on the show. His message of hope will be delivered tonight on all of our Ramsey Network outputs, including Facebook, Anthony O'Neill

and at Anthony O'Neill, Instagram at Anthony O'Neill, Dave Ramsey dot com at. And what's the YouTube everywhere? Everywhere. Fine videos are seen. Yes. Oh, man. I can't remember all the different outlets these days. I did add up that with all of you having all of the social media from Twitter and everything, all all the six Ramsey personalities plus me,

and then each of us posting on each of ours, that was 168 posts of just those messages. And then they went out to, of course, our followings and those different social media things. And so tonight will be an incredible message. I'm looking forward to hearing it. I'm looking forward to it too, Dave. Last week I encountered something that just, I believe, was downloaded from God. That was my message for tonight.

Last week you, Rachel, and Hogan spoke life into us and into money. Ken spoke life into us when it comes to careers. And Dr. D just really just spoke life into all of us with our mental. And I just really wanted to be a blessing to the people, someone in line like Chrissy, just the personal development, spiritual side of things, because we're going through some dark times and let's be honest, and we need to see a little bit of light. So tonight I'm talking about how we, how all of us in the world today, no matter where we are in life, how we all can still be the light. And so I'm speaking to that

young kid, to that college graduate who's looking forward to graduating this year, to that high school seniors I was looking forward to prom and graduation. I'm speaking to that single parent that's going through, that's feeling alone. I'm speaking to all of us tonight. So tonight on my YouTube, I'm at Anthony O'Neill, Instagram at Anthony O'Neill. You're going to see a little bit of the preacher side of me come out tonight, but I'm excited. Well, we always do when you speak, and we love that. I get accused of the same thing, and it's my favorite part of –

it's my favorite compliment and my favorite criticism both. I'll take it. All right, Bianca is going to start off this hour in California. Hi, Bianca. Welcome to the Dave Ramsey Show. How can Anthony help today? Hi, guys. Thank you so much for talking with me. We definitely need your advice. My husband and I are about to be done with Baby Step 3, and we have three big life things.

That feels pretty good in the middle of all this mess, doesn't it? Yes, it does. It feels wonderful. Great timing. We have three big life things we want to accomplish, and we don't know where to start or what to put first. So we have four kids currently who are all going to be in college soon. One is already in her first year in college, and the other three are triplets who are all going to be in college in about two years. Ouch! Yeah.

We also want to have another baby, but we need to move out of the house we're living in to do that. We're 32 and 44, so the sooner the better. And the third thing is we want to move on to a baby step 3B and save a down payment for a house. We live in the Bay Area, and a modest house in our area, like a three-bedroom house, is $500,000 to $600,000. So we don't know where it's at. What is the home you're living in worth? We rent it.

It's a really, really old house. We have great rent because my husband's been here for a long time. So to move to the same type of house in our neighborhood would be $1,500 more per month. So we've stayed here even though it's a really old house. Okay, you're 32? Mm-hmm. When you're 42, if you could only have done one of these three things, what would it be? I would like to have another baby.

Okay. Well, the good news is there's plenty of room in this rental house because the rest of them are leaving for college. Yeah, not for another two years. That's funny. They're coming, though, right? I mean, there's going to be okay. I mean, one's already gone, right?

Yeah. Okay. So there's room opening up every day you know and uh so uh and if i'm you my second one is i want these kids these older kids to go to school debt free yes right and then my third goal be buy a house yeah okay if it was me i would have had that that would be my order but you get to decide your order. I don't care. It's your order. But here's the thing. When you try to do everything at once and you justify it emotionally, you're about to go into debt for one of them or two of them or all three of them. Because everything you mentioned has a nobility to it.

Homeownership, college education, new babies, so on. So the ones going to school are not yours? No, they're my stepchildren. Okay. All right. I suddenly did the math and it just occurred to me you didn't have them when you were 12. Okay. All right.

Hopefully. Yeah. All right. So, all right um hopefully yeah all right so uh all right good so i mean that makes it a little harder a tiny little bit harder for you how long have you uh been their stepmom uh i've been married for two years and we've been together for six years. Okay. All right. So two years, though, you've been super heavily invested. And so your children, you love them, you care about them, but some of these other things are probably, if a normal human were doing this,

you having your own child that you get pregnant and you deliver the baby is a huge priority to you maybe more than his kids going to college kind of thing that makes sense by the way that's what i would do that's how i would be thinking and it doesn't mean you don't care about them and it doesn't mean you're not putting them ahead of your own wants or you're being selfish or something like that that was not what i was saying yeah but um here's the thing you can do anything if you line it up and say i'm not doing the other one until i can do the other one and you just say that means you're probably not buying this house for maybe five six years yeah okay and my husband really wants a house that's his like pride and joy he feels really

that's fine about himself that we live in such a you know kind of crappy place that's fine i mean he can he can want that but does but my only question then is like i said before anthony yeah what do you want more exactly well what are the priorities you know for both of you all i would sit down and have a conversation and say babe babe, this is where I'm at. Then allow him to say, babe, where this is where I'm at. And something that Dave said earlier on in the show, he said, both of you all got to have peace and got to agree with it. And then here's what I would do if I was married. I would actually once we come to peace with whatever that is, we're going to write it down.

Yep. All right. This is number one. Then this is number two. And this is number three. So this way we're not being distracted by other things. We're going down that priority list. But as a single man, that would be my suggestion just to get the priorities written

down and both of you all be at peace with it. Yeah, that's good. Because I tell you, we had an argument one time it wasn't nearly as noble as what you're doing. My wife had been driving one of those old blue Astro vans. You remember those two-tone blue Astro vans? I do.

Trashy thing. Yes. And she'd been driving that thing. It had 800,000 miles on it, it felt like. And I needed to do some stuff at the office, and she wanted to upgrade the car to a better-used car. We had an argument about which one went first. And as we talked about it, she was actually right. She needed to move up out of that crappy car.

So we did that first. Then we did the office thing. There you go. You do them both, just which order? Yes, sir. Folks, I love telling you about well-made, well-thought-out products. Today, I'm talking about Grip6 belts. I don't know about you, but I'm not a fan of traditional belts.

They never fit right, and they're uncomfortable. Grip6 belts are unique. Owner BJ designed a truly modern, minimalist belt made of high-quality materials with no holes, no flap, and no bulk. And the buckles come in really cool designs and are interchangeable. I personally own these belts in different styles. And talk about affordability, Grip 6 belts come with a lifetime guarantee. And that means if you no longer like or fit the style of your belt, you can replace them for free.

Plus, I like the way these guys do business. Grip 6 is determined to help build and modernize American manufacturing. To learn more and get this month's Dave Ramsey special, visit GRIP6.com. That's GRIP6.com. Anthony O'Neill joining me this hour, his new Quick Read mini book. I don't know what we call it quick read it's 64 pages called destroy your student loan debt comes out today you can get it at amazon.com you can get it at davramsey.com anthonyoneal.com and anthony you decided with our team that we needed to put out a basically a couple chapters yeah the equivalent of a couple of chapters on specifically how to

destroy your student loan debt. Yeah, Dave, you know, last year and going up to now, the number one question when I was out on book tour, when I'm out doing media hits, and even just recently as when I did the Tamron Hall show, the number one question I've always been asked is like, hey, this is great for my son. It's great for my daughter. But I have $100,000 in student loan debt. One of this came up when I was on the tamra hall show we interviewed two kids who had nearly two

hundred thousand dollars in student loan debt and it was like what do i do and you had a book out called debt-free degree and she's like too late exactly yeah okay you know and so we just wanted to have uh just a quick read it's a deep dive into baby step number two this is not for the average ramsey follower because you you already know baby step number two this is not for the average ramsey follower because you you already know baby step number two but this is for individuals um who's like you know what i want to attack it um and here's another thing too dave i've learned this is a great uh book to give to a bunch of college graduates who are about to graduate this year who's sitting at home right now with student loan debt with student loan debt it's 10 bucks 10 bucks you can buy a box of them and give them out for uh graduation gifts and to people who are not already

if you're already like you're a coordinator of financial peace university 22 times yeah don't buy this book for you you know what it says yeah you've already covered it okay it's not like you're gonna go oh and anthony's saying the same thing that all they always say at remsey which is get out of debt well no kidding of course. Of course we are. Right. So that's what we do. But this is a different format, and it's in Anthony's voice, of course, and addressed to – because he runs into so many people that have no idea who Ramsey is. Yes.

With all the speaking you do on college campuses, on high school campuses, and the media you're doing, you're getting a hold of folks who say i don't know what a baby step is exactly and so which is great so destroy destroy you got to hate it to destroy it highlight that you're a student loan dad yes uh kill old sally may yeah starve her out give her her eviction notice yes and even right now you know even though the government said hey we're going to push off six months for payments and push off six months for interest no you still have a job if you still have income coming in now is the best time to destroy it because you can even destroy it a lot quicker yeah use that to your advantage yes rather than

a chance to kick up kick back and not work at it Now, if you're furloughed or lost your job, that's a different thing. You're not working baby steps. You're not paying extra on debt in that situation. You don't have an income. But you've got a different set of priorities, food, shelter, clothing, transportation, and utilities in that case. Yes, sir. But those that are working their plans still, that have steady jobs, predictable incomes, destroy your student loan debt. Yeah. And here's a little secret inside the book, Dave, that I want people to know.

A lot of people ask me, well, should I refi? And I ask everyone, well, if I refi, what's the exciting thing about it? Where I get a lower monthly payment and I get so upset with that answer. So in this book, I talk about, hey, here's why you should refi if you hit these certain things. But it has nothing to do with getting a lower payment. It's about getting a lower interest rate and putting more towards the loan and getting you out of debt. So we really break this down on when is the right time to refi because not everyone should refi. Right.

Exactly. You refi if you get a lower interest rate. Yes. With no penalties. Exactly. And no closing costs. And a lower interest rate. Yes, with no penalties. Exactly. And no closing costs. And you can do that with Splash Financial right now. Yes, sir.

They'll do it. But they may not have a lower interest rate than you have today. Yeah. In which case, you would not refi. Don't do it. Because the only advantage, the only advantage to refiing is a lower interest rate. Yep. That's it.

So never refinance unless your net effect on your interest rate goes down. You might have six different interest rates, but the net effect of them, well, I just want them all in one payment. That's silly. Don't do that. Pay them in 14 payments. Who cares? You're going to knock them out in the debt snowball anyway.

But the net effect of the interest charged on your current balances at your current interest rates is less if you refi than you would refi. And that's what you're trying to do. Yes, sir. Nizar is with us. Nizar is in Louisiana. Hi, Nizar. How are you?

Hey. How are you doing, Dave? Good, man. How can we help? So me and my wife, we bought a house last year, and after our monthly expenses and after investing 30% of our income, I'm left with $4,500, and I'm thinking about turning on the house every month and be done with it in three years. Amazing. Does that sound like a good plan? It does.

Are you debt-free except the home? Yes, sir. Do you have any children to save for college? I have one. She's two. Okay. I probably put some of that towards some college and the rest of it towards the house. And we always tell folks in Baby Step 4 not to put 30% in, Anthony.

Yeah, we always tell them to put 15% in. Right. Yeah. The reason why I put 15% is it's 15% for me and 15% for my wife. No them to put 15% in. Right. Yeah. Now, the reason why I put 15% is 15% for me and 15% for my wife. No, it's 15% of your household. Oh, that's not 30% of your household income. That's just 15% of your household income.

Yeah. So should I put 15% for her and 50% for me? Listen, if you add them together, if you add your incomes together and take 15% of that, that's 15% of your household income. By the way, if you add them together, if you add your incomes together and take 15% of that, that's 15% of your household income. By the way, if you take 15% of your income and 15% of her income, it's going to be the exact same number.

Absolutely. It's not 30. It's not 30. Okay. I apologize. I'm sorry about that. No, that's okay. I just misunderstood what you were doing.

So you're doing baby step four perfectly, and, yeah, I'm going to throw like crazy and get that house done in three years at his age. That's amazing. He's going to be gonna be weird that's amazing i love weird weird is a good thing for years we've said be weird normal's broke don't be normal and then a guy tweeted the other day dave given the situation right now normal would be pretty cool for a while i agree i completely agree i would completely be normal if i could be normal right now back to normal god help us all right jacinda is in new york hi jacinda welcome to the dave ramsey show thank you guys you guys are so awesome because of you i just finished paying off my credit card

bills and i'm ready to take on my student loans way to go yes way to go hero yes how much student loans do you have uh jacinda um i have 16 000 um and yeah so um but i'm on that now and i and it's just awesome to see uh how this all works so i'm calling because my i'm calling as a concerned daughter um i live with my my dad still. I just graduated out of college and my family was struggling before the pandemic. And because of it now, you know, his small business is completely shut down. But I don't see this as a wake up call that he needed. You know, he hasn't even tried to get a job like temporarily. And I don't it's really sad to see. And I don't know how I can get him on your guys' teaching. You know, it's hard. He's very stubborn.

You know, I'm trying to say the right things because, you know, I have an interesting great father, one my fathers and um and i just want to say i can understand how you're feeling um i'll let dave speak from the father perspective but i want to speak directly to you don't allow this situation to overstress you and what you need to be doing for your life uh be a concerned daughter but don't let your concern for your father now jeopardize and impact your personal life. Because your father has to make his decisions, speak life into him, give him some suggestions, but make sure that you're getting through this season. Make sure that you're healthy during this season. But as far as in from the father perspective, Dave, it's not too much.

I can really speak into that because I'm not a father. Well, I don't know that you have to be, I mean, it's bottom line is, is that's a child to parent with both of you being adults, um, is, uh, um, is difficult to give advice. Yeah. We call it the powdered butt syndrome. Once somebody's powdered your butt, they don't really want your opinion on money or sex so um you know and so you know he just you know all i think the best thing you can do is talk about your story a lot hey dad i just paid off these credit cards hey dad i'm working on this student loan debt hey dad i'm so excited about this stuff learning this stuff from dave ramsey man if you read this book from anthony

o'neill you read this book from dave ramsey dad hey here's some ideas dad here's what i'm doing dad not waving your finger at him and wagging your finger and saying, dad, you're stupid. That'll never work. Uh, with very few fathers anyway, a few of them are wimpy enough to allow their kids to do that to them. And, um, so you, you know, you just gotta, if you talk about your story though, he'll be proud of you and he might catch on. Yeah. you and he might catch on yeah for over 20 years i've recommended zander insurance and their term life programs i'm still amazed at how many families have no life insurance or not enough and would be financially devastated if a spouse or parent died it's inexcusable since the cost

of term life is just plain cheap, and Zander really has figured out a way to make it simple and straightforward. They only sell the plans I recommend, and their system is built to your needs. You pick your path. If you want to work online, you can compare all the companies and handle everything over the web, even signing up and getting your policy electronically. If you have questions or you need that personal touch, well, they're there to help. It's all about serving you like no one else so you get the protection you need. There really is no excuse not to get this done.

Call 800-356-4282 or go to zander.com you pick the path to getting your family protected so james is in california hi j. Your question for me and Anthony. Yes, sir. Good afternoon to the both of you. How are you? Good. How can we help? I did something incredibly stupid almost four years ago and got a car fleece. I found you last year, and I thankfully get to turn it in in a couple of months, which I fully intend on doing and buying a car in cash.

Yay. I wanted to know how do I calculate the lease into my total debt so that way when I go to Tennessee to do a debt-free scream, I give you an accurate number. This is the first oh man let's see um you can pick any number you want and i'll be happy with you but the uh let's see there's a couple of possibilities i guess uh when you started your debt snowball, what was the remaining balance on the fleece at that point? You could use that number. When did you start your debt snowball? I found you last June on an eight-hour car ride to Lake Tahoe,

and that is when I decided to stop being stupid. So I think back then the amount was like $3,000 or $4,000, I think. What's your monthly? $365. Yeah, so it would be about $4,000 then in 12 months. Yeah, that's pretty close. So somewhere around there. I mean, that was the balance at the time you started,

and the balance at the time of your debt-free screen will be zero. So that would be in the process of how much debt you have paid even though it's technically a fleece but uh still you got to get rid of it so yeah that's a that's a great great question that is a new question i have not had never heard good stuff emily is in georgia hey emily how are you hey babe, Dave. I'm doing well. How about yourself? Better than I deserve. What's up? All right. So I'm 21, and I am on your third baby step. And I had a plan to purchase a car in cash next year in the summer, but Monday my car was stolen, and it kind of jacked up my plan a little bit,

and I only was covered by liability. So I was wondering what you thought. I do have $3,500 in my emergency fund saved up so far. How much was your car worth? It was worth about $6,000. And you didn't have any, you didn't have theft on it? No, sir. So, Emily, does that mean you didn't have full insurance on it? No, he just had liability.

So your car was stolen, so you get nothing? No, sir. I don't get anything i've reached out to my insurance company and that doesn't cover unless i was in an accident right and it wouldn't even cover your car then it would only cover the people you hit exactly yeah so um all right you've learned your lesson you need car insurance that covers yes theft and collision when you're this broke uh you don't you don't self-insure through something like that unless you've got lots of money okay so but you got 3 500 bucks now to buy you who steals a car

in the middle of coronavirus what kind of bum does that oh man this guy right here he needs double time yes and i'm calling it a guy It might have been a girl car thief. I don't know. Oh, my gosh. Who knows? Yeah. What kind of car was this that this scumburger stole? It was my first car, and it was a Toyota Camry.

It was like a 2007. Who steals a 2007 Toyota Camry in the middle of the coronavirus? Unbelievable. Dude, bring your car back! Really! I'm still holding out hope that they do, but I do, I'm trying to get my follow-up plan. If they don't, I'm still... Yeah, you're going to spend the money you got to buy a car, aren't you?

Right, yeah. I don't know what else you can do, do you? No. I mean, you know I'm not going to tell you going to debt. You knew that for you called right i had a feeling you'd say that i have a lot of opinions that people are throwing out there lots of broke people have money opinions don't do it em don't do it don't do it i mean how long can you go without a car though let me ask you that question could you

um how long could you go without a car could you you stack up some more money? That's what I'm trying to ask. Probably not super quickly. I could maybe borrow my mom's car for a little bit. She'd be generous enough to lend it out to me for a bit. Are you working? I'm not really sure. Yes, sir. What are you making?

Take home after tax about $1,400 every month. And you're living with your parents? Yes. Okay. Yeah. What are you making? Take home after tax is about $1,400 every month. And you're living with your parents? Yes. Okay. Yeah. I mean, if you put it off a month, it adds $1,400 to the equation. That's what Anthony's point is.

It's $5,000. You're probably not going to do it for five months. Mama probably want her car back. Yeah. But $5,000 car would be better than a $3,500 car. Right. If you can do that, because I'm going to tell you to pay cash for this, whatever you do, and then the instant you do the purchase, you are on the phone with your insurance agent putting insurance on your car.

Yes. Right. Yeah. Yeah, that's a good one right there. Absolutely. Yeah, you got to pay cash for whatever you do. So you're either buying a $3,000 car now, or you're buying a five thousand dollar or forty five hundred dollar car in uh three or four or five weeks uh and pick up extra extra hours if you can get it right now and just pile on because who steals

a car in the middle of this that's frustrating criminals never sleep no they're never unemployed. Oh, my gosh. That's so ridiculous. Mike is in Kentucky. Hey, Mike, how are you? Oh, I'm blessed, Dave. How are you guys? Better than I deserve. What's up? I'm a federal employee with the Bureau of Prisons.

Everything I have now in my TSP I've had in the 2030 L Fund, which is down about 12 and a half. The question is, is now the time to move it over to the CS or I, which is a little more risky as the stock market begins to come back up. Yeah, because you're buying them on sale. Right. I'm buying it on stock. I just wanted to double check. Yeah.

I mean, if you look up, I just pulled up the C on, just pulled it out, just Googled C plan track record, right? And since January of 88, it's averaged 10.66, so about 11% average annual return, which is about what the S&P has done during that period of time since 1988 when the C plan fund was formed. It is the best performing of any of your options. And, yes, it has probably gone down more than 12.5, though.

Well, now, that's just the 2030 L that I'm in. No, no, I'm saying had you been in the CS&I the way we teach, you probably would have lost more due to corona right now, lost more value in your account than 12.5. Okay. As a recommendation between C, S, and I, do you have a guideline? I generally go 80-10-10. 80-10-10.

80 into C? Yes. Okay. 10 in the S and 10 in the I. And the S and the I are just some spice for the gumbo. Right. That's all it is. It's just a spice because the S is your small company.

It can be wilder than a buck. And the I is your international, and it's underperformed the other two vastly over the years. But at least you've got some international flavor in the gumbo here, and that's what you're looking for. But if you had been invested in that, Mike, it would be down more than 12.5 since the first of the yearbo here, and that's what you're looking for. But if you had been invested in that, Mike, it would be down more than 12.5 since the first of the year, probably because the market's down more than 12.5. And then when it comes back, it would have come back. The beauty is that you were in this other thing, which was a little bit lame.

These life, they're called life plans, the L plans. And, you know, so you didn't lose as much but it's a great time to make the transition and ride it back up because you didn't have to take the ride down so um i mean you probably be off 20 or something right now i don't know what the total would be i haven't looked at today but um so you you did actually time it correctly although that's not something i try to recommend trying to do so uh but the c plan uh anthony we've got a lot of people we talked about in the millionaire study doing the tsp that were federal uh postal workers federal employees of different kind military

people that had literally built a million dollars in net worth doing that over the years man that's beautiful day and that is not just doing that and just investing. Man, that's beautiful, Dave. And that is, not just doing that, and just investing, making wise decisions during that time. So I absolutely love it. Yeah, it's a good way to invest. And it underperforms some of the other things you could do in the open market, but you've got so many other advantages.

And by the way, we always tell folks to select the Roth section of the TSP as well, so it grows tax-free. Free's good. Free's a good thing. I love free. 14-day free trial on FPU, Financial Peace University, right now. First time in our history of 30 years of doing that. You can get that at DaveRamsey.com slash hope, and a bunch of other free things on there.

You ought to check out all the stuff we're doing to try to help you guys at this particular moment in time. This is The Dave Ramsey Show. Business leaders make your life easier with FreshBooks. Whether you're starting a business or you've been at it a long time, FreshBooks is one of the smartest decisions you'll make this Thank you. time to work on your business. Try FreshBooks for 30 days free at freshbooks.com slash Dave Ramsey. Our scripture of the day, Romans 12, 11, and 12. Do not be slothful in zeal. Be fervent in spirit. Serve the Lord.

Rejoice in hope. Be patient in tribulation. Be constant in prayer. Louis Pasteur said, let me tell you the secret that has led to my goal. My strength lies solely in my tenacity. Never give up. Our question of the day comes from blinds.com. They have a 100% satisfaction guarantee. Means even if you mismeasure, you pick the wrong color, they will remake your window blinds for free. You get free samples, free shipping, and with the new promos they run every month, you'll save even more.

Use the promo code Ramsey to get the best deal. Today's question, Anthony, comes from Daniel in Arizona. Dave, Anthony, I'm on baby step two. I've got $27,000 in student loan debt, $1,500 in a personal loan, $800 on credit cards. Since the coronavirus pandemic, I noticed my student loans have gone from 8.5% interest to zero. Should I stop paying my credit cards and focus on my student loans since they have no interest, or should I keep paying off the smaller debt, being my credit cards and personal, and then my student loans? I mean, I think he already knows the answer, but I help him out again.

You know, we're not going to stop the debt snowball. We're going to continue working it. That $800, I mean, actually, I would get even more aggressively after that right now and see if you can get from $800 to $1,500, depending on your income, and then go after the student loan debt. Rather than $800 on something and $1,500, then... Yeah, just knock it out. Yeah, just knock it out.

It's only $2,300. Get those two things done and then get after those student loans. The thing is, the interest that you're saving on the student loans, not having to pay that is going to work either way mathematically. It's going to end up in exactly the same place if you pay the exact same amount. So there's no math benefit, and you knock out the little ones because you get to pat yourself on the back, get to say, attaboy, well done, well done, Daniel in Arizona, well done.

You get to keep going, and then you tear into that student loan. And even if it is zero interest, we're going to pay it off as fast as we possibly can. The fact that they have given you an interest break only accelerates how fast you pay it off. It does not mean you stop paying on them. Exactly. Exactly, Dave. I mean, I think that's golden. rates how fast you pay it off it does not mean you stop paying on them exactly exactly dave i mean i think that's i think that's golden don't break the baby steps you guys yeah don't break that snowball i mean the only thing we're telling you is like we've always told you if you're in the middle of a crisis yourself a personal crisis of income or financial you do not work the baby steps

you stop and build up cash so if you've lost your job in the pandemic, if you have been furloughed in the pandemic, then you're in the middle of a crisis. You stop everything and you just pile up cash and take care of your four walls, food, utilities, rent being your first three, and transportation, keep gas in the car, and to go to your new job that you start working to get things going again as soon as soon as possible i mean take anything just keep going keep money coming in don't it's real easy in a situation where there's there's a lot of excuses out there that are disguised as reasons yeah to sit and wait on something to happen. Let me tell you when something's going to happen, when you make something happen.

That's it. The government's sending you $1,200. That is not going to fix your life, and if it did, by definition, you were already struggling. Mathematically, if $1,200 fixes your life, mathematically, you didn't have a life. And so it doesn't fix your life it's a joke and so you got a lot bigger everybody's got a lot bigger problems and anthony you you experienced that this week where the mortgage company's offering perfectly healthy people financially healthy people the right to go into forbearance and delay their payments which is going to create

a mess on down the road yes it's called a forbearance plan. And when I went to pay my mortgage payment, the lady said, well, hey, we are offering forbearance for three months. And I was like, well, really? I said, okay, give me a little bit more information about that. I still paid my bill, but I just wanted to ask questions just for knowledge. And she said, yeah, so all you got to do is just, you know, push off for three months. And then at the end of that forbearance plan, all three months plus the current month will all be due at one time. So if your payment is two thousand dollars a month, for an example, that means you're paying eight thousand dollars in one lump sum. How does that help people? That doesn't help people at all.

No, it just delays the foreclosure it's frustrating even if even if you're in a crisis situation i mean if you if you push one payment until you get things going yeah then catch it right back up that's all you can do because you're broke yeah then that's all you can do right but it you know this kicking the can down the road stuff these sba loans for these small businesses that are supposedly forgiven. And I got to tell you, I've been reading the details on it. And I think you guys are stepping up on a rug over the top of an empty manhole. Yeah.

You're going to fall right straight through and find yourself in the sewer. But, Dave, let's talk about that. The government saying we're going to forgive something. Well, haven't we already had this conversation over in the student loan world? Aren't there a lot of people? Oh've heard this before aren't there a lot of people saying hey you know i thought i was going to get my loans forgiven because i work in this certain area but then they found out well hey you didn't make this kind of payment or you didn't do this or you didn't ask to go to this particular area so no not the check box. Come on, Al. And when you forget 4X, you don't check the box. Oh, I'm so sorry.

It's a loan now. Come on. And don't tell me it's a grant. It is not a grant. It's not. It's a loan. And you have to meet very stringent guidelines on hiring, firing, maintaining your payroll, small businesses, for that loan to be forgiven.

This is the SBA. They're the DMv of small business you're about to get yourself in a crack people do not do this do not kick your can down the road with these uh forbearances uh do not kick the can down the road with a supposed forgiveness and you make a good point i mean haven't we heard this song before. Same song, different verse. Yes, sir. I'm from the federal government, and I'm here to help. That should make your hair curl right there when you hear that phrase. I'm telling you, there's 88,000 people right now where their heads are curling because they thought they was going to get their student loans forgiven.

That have been turned down. Yes, sir. And they've only approved a handful. A handful. Just five. I mean, it's ridiculous. Research student loan forgiveness not happening, and you'll find it's true. It's not happening.

And that's what you're going to get. You're going to find out the borrower is slave to the lender, and that master is not very forgiving. That's what you're going to find. Don't do that. And don't kick the forbearance down the road. And stay off the payday lender's lot. Please don't. I'm sorry.

I've seen that yesterday, Dave. 13 cars. I'm just going to say it on air. You should have taken license plate numbers. No, but 13 cars at Advanced Financial. And I'm like, what are you all doing? This is not the smart move, you guys. They're going to charge you ridiculous interest rate.

And what's going to happen? You're going to get stuck in this for years and for years and for years. Because if you don't have the money now, what makes you think you're going to have the money when you do get your job back or when it is next week? You're going to get stuck in that system. Listen, you can get three jobs delivering pizza by the end of the night. Yes. You can get jobs with Amazon. You can get jobs with grocery stores.

They're hiring like crazy. Amazon's got a hundred thousand jobs they've launched yes now is that a job you want to do as your career for the next 25 years no no we're not trying to get through the next 25 years we're getting through the next 25 days if you don't have a job but if your job's okay just god stay away from the stupidity because this stuff let me tell you always feels good in the short term. It always relieves the pressure in the short term. It always makes a bigger mess in the long term. And that's what tells you when you're doing something dumb with money.

And so you do not have to fall into this. And we're not here to say, oh, you should have had an emergency fund. I told you so. Oh, you should have been out of debt. I told you so. We're not saying that. If you're hurting, we're here to help you but we're also telling you if you're hurting don't get don't you know you know don't break your finger and end up breaking both your legs as a result please don't that's just you're you're cutting off your nose to spite your

face thing don't do that check out financial peace university at davramsey.com slash hope we are for the first time in 30 years giving you a free 14-day trial. Some of you have 14 days left at home. And you got a free 14-day trial for the full high-performance suite, the nine weeks of classes. It's nine classes. So you can easily binge through those easier than you can some of the stuff you're doing on Netflix.

Yep. And every dollar plus you get it all signed up you can get everything going for financial peace university spread the word financial peace university free for 14 days people need to be in this over 30 000 people have already done it in just the last couple of weeks and we want a bunch more in there i want a 300 000 doing this yeah and then i'll be happy anthony thanks for hanging out message of hope tonight at anthony o'neill check it out anthonyoneill.com and at anthonyoneill on instagram i'm dave ramsey we'll be back 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

in the middle of these uncertain times ramsey solutions wants to give you some hope for the very first time ever we're giving you financial peace university free for 14 days go to davramsey.com hope so you can watch from home