The Ramsey Show - App - Don't Waste Your Time or Money in the Metaverse! (Hour 2)

Episode Date: February 25, 2022

George Kamel & Dr. John Delony discuss: When it makes sense to move, The absurdity and long-term effects of the Metaverse, Housing decisions during a messy divorce. Separating business and personal accounts. Want a plan for your money? Find out where to start: https://bit.ly/3nInETX Listen to all The Ramsey Network podcasts: https://bit.ly/3GxiXm6

I'm Live from the headquarters of Ramsey Solutions, this is The Ramsey Show, where America hangs out to have a conversation about your life, your money, your career, your relationships. We do it all right in front of you. I'm joined today by Dr. John Deloney. I'm George Campbell, Ramsey Personality, and we're here to help. So give us a call, 888-825-5225. We'll talk about whatever you want to talk about. Angela kicks off this hour. She's in Cleveland, Ohio. Angela, welcome to The Ramsey Show. Well, hi. Thank you so much for taking my call. Absolutely. So I guess I really just needed a little bit of direction here for some plans that I had for myself that were stalled.

Actually, nearing retirement age, getting there anyway, and was recently married in the middle of COVID, eloped, and we both are remarried now. And I had had plans to relocate south out of Ohio and then had a few, you know, bad luck situations. Had broken my back in a slip and fall and my wrist. So it kind of went late what I was doing for a living as an LPN. But yet it also gave me the opportunity to be there when my brother passed away and things like that. So a lot of good came out of some bad things. And I stuck around in Ohio and met my husband. So all good.

Except you're in Ohio. I'm just kidding. Yes, that's the only missing part. I was just being silly. Oh, yeah. So, you know, I'm at the point now where I'm doing telephonic health care. And so I do have the ability to relocate. And my husband, he opened a business right before COVID. and was just establishing and doing great.

And then COVID almost destroyed the business. So we have, you know, a few steps forward, quite a few steps back. But I guess what I'm getting at is, do you think it's a good idea to still relocate? The house would sell. We'd use the proceeds and continue to sell the house, purchase something down south, and might be more of a mortgage with the way everything has just increased so much. But overall, with much less property tax, I think we would still be at the same house payment. So it's pretty much the same financial situation, just shifting it to a warmer

state. And then he would let his business go and find something else to do. Now he's 62, just turned 62 the other day and I'm 60. So this is where we're at. We are on baby step. Well, we don't have kids in college. We already did the parts that we were doing there. So we have no debt. We have six months in the bank. We've got vehicles paid off. And it's really just the money in the house and shift that to a different home. And what's your, what's your, what's your hesitancy? What's the, why haven't you packed up and moved yet? There's something hanging around you. You know, he had a lease for his business that will be up this summer.

So that's the only thing we were waiting for. Does he want to move? We were locked into that. Oh, yes, he would love to. We both want to. But something's holding you back. What is it? Besides the lease, something existential is holding you back.

Oh, gosh, we have our kids up here. But, you know. Oh, dumb old kids. Come on, Angela. Yeah, and grandchildren. I think COVID has taught us all that you can do this long distance. You know I can't. FaceTime is a godsend for grandparents anymore.

When did your brother pass away? I'm sorry? When did your brother pass away? Oh, it's been six years now. Oh, six years. Yeah. Yeah. And then my dad too. So kind of went from one health situation where I was able to be there for him and right into my dad. So I was the person. And so now I kind of feel like it's my turn. Yeah. so i define grief this way grief is the gap between what i hoped for or what i wanted to happen and what really happened there's that space and i wanted my brother to live forever

and he didn't i wanted my dad to be there forever and he wasn't. I wanted my job to fill in the blank. Whatever that thing is, I wanted to have a body that looked like this. And now I look in the mirror and it looks like that, right? Grief is that gap. And anytime we try to jump over that gap and not walk through it, our body spends time and energy trying to solve that gap. And so here's my only concern. I want you to move. The fact that you're hesitating makes me first think, is there something you are walking away from that you still need to deal with?

Because here's the ugly part about moving. You go with you. Right? Oh, that's correct. No, I did not have a remote position until just the last 10 months. So now I'm lined up. Well, I could still work from home and work anywhere. Okay.

Whether we decided, you know, to, I mean, even if we wanted to rent for a few months in one town. Yeah, so I'm not talking about money, Angela. I'm talking about can you leave Ohio in peace? I think I could. Okay. I think I could. That about money, Angela. I'm talking about can you leave Ohio in peace? I think I could. Okay. I think I could. That's the question then. I think all of the big things, the big legalities, all of that, leases, all of that's over and done with. And now his is finishing up.

Okay. So I'm going to pass it over to George to talk money, but listen to me very carefully, okay? Yes, sir. You're talking about legalities. You're talking about legalities. You're talking about leases. You're talking about I got my job lined up. All that stuff is important and good. That's all critical to just moving halfway across – I mean not halfway, all the way across the country, right?

What I'm talking about is the spiritual nag that you feel that's tugging on you that you can leave ohio in peace that you have grieved your brother and your dad and i wanted this stuff to happen because the way you describe your story is i wanted all this stuff to happen and it didn't and now i'm kind of here and now i'm this this and what and i want that stuff i want you to have written about that i want you to have processed that, sat with a friend and said, you know what? I've never said this out loud because I'm always, I'm somebody who wants everybody to be positive around me. Like my heart was broken or that sucked when I broke my back. I would have been the chief this by now.

I want you to say those out loud and that's not whining or complaining. That's processing. Very different things. Right. Right? No, I went through that. Good. I did.

I really did. Good. I mean, if the money works, and I'll turn over to George, I say run to Florida. Y'all need to be the kind. One of y'all needs to stand up out the sunroof of your car screaming and yelling all the way to Florida. Yeah, Angela, I mean, you don't need our permission to move. But here's what I would do. I'd go get breakfast or a nice dinner with your husband

and share all of your fears out loud about moving. And then start dreaming about what your new life is going to look like. And then start making plans. We're going to do it. There we go. I think I just needed to hear somebody else say, just go do it. That's what we're here for. Yeah, and make sure you've got a job.

Make sure you can afford payments on stuff. Make sure, like you said, the leases are done. You're not skipping out on town in the middle of the night. But, yeah, get to Florida and enjoy your years. You've been taking care of people for a long, long time, and you've got a great career that's going to allow you and your new husband to just enjoy life for a season. Excited for your move, Angela.

Go get a tan on your back. You deserve it. This is The Ramsey Show. you've got a lot on your plate a job your home your marriage and your growing family while you're enjoying the present you can't help but think about your future and your finances. As you explore your options, consider Christian Healthcare Ministries, or CHM, for your health care. Their generous maternity program and budget friendly monthly programs have been a blessing to members welcoming children into their families. Visit chministries.org slash budget to see if it's right for you. Christian Healthcare Ministries is a Ramsey Trusted Provider. Welcome back to The Ramsey Show. I'm George Campbell, joined today by Dr. John Deloney.

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That's RamseySolutions.com slash Smart Tax.com smart hey important note i did my taxes already with ramsey smart tax if i'm going to be selling the product i want to make sure i'm using it awesome and you sent me a text and it was a picture of the website to log in and it's my face i sat down with all my tax reports and i moved some accounts this year i had a bajillion it took it it had a lot of stuff. I sit down. It's a late night. The kids are in bed. I'm going to do it at night. The first thing I see is George's face. My smiling face haunting you on the smart tax login page.

Just taunting me doing my taxes. I apologize to many Americans who had to experience the same fate. I burned off my rods and cones, man. I was trying to encourage you with a smile. You can do this. It's going to be okay. At 9 o'clock at night in the dark. It's over now, John.

You did it. Until next year. Until next year. Alright, Seth joins us. It's a free call, folks. 888-825-5225. Seth is joining us in Memphis, Tennessee. Seth, welcome to the Ramsey Show. Yes, sir. How are y'all? Great. What's up, brother? Speak directly

on your phone nice and loud for me. Alright, yes, sir. My wife you all? Great. What's up, brother? Speak directly on your phone nice and loud for me. All right. Yes, sir. So my wife and I are debt-free, and the baby steps four, five, and six. And my question has to do with life insurance and how to eventually become self-insured. My wife and I both, we have 20-year term life. That's about 10 times our income, so we're following the plan. But just wondering, when it gets to that point, when the 20 years is up, we'll be roughly 48 to 50 years old.

And if all of our investments are in 401Ks and IRAs, how do you have access to that money to be self-insured? Because if you're following the plan, I know at the end of 20 years, you should have your home paid off and the nest egg going. So get worried about that. There's probably something I'm missing, or at that point, you just get another shorter 10 or 15 years until you have access to your retirement account. That's a great question, Seth, and you've nailed it.

I mean, that's what it means to be self-insured. And if you follow our plan, this is why we say that. Let's say you have your 20-year term in place, which is great. You've got the 15-year fixed rate mortgage, which means the mortgage is going to be paid off. You've now been investing 15% over those 20 years, which means you are a baby steps millionaire, which means if something happened to you, God forbid, your wife's going to be okay. You've got a paid for house.

You've got a whole bunch of money sitting there in these investment accounts. And your question was, how do I access that money? And the thing is, if you passed away, you would have what's called an inherited IRA, go to your wife for inherited 401k,

and she would be able to use those funds. So it kind of is, I guess, it's a sad loophole, but if someone dies, there's a different kind of treatment on that money that's in the investment accounts. Yeah, not so much as it's just passing along. I don't even know if it's a loophole. It's just you have access to this retirement account because the retirement funds are not going to be used for retirement. So just make sure that they're the beneficiary. Your wife is the beneficiary on those accounts so that if something did happen, it would go right to her and she would be able to use those funds. And so what we talk about with being self-insured is if you had a million dollars, could she live forever? Well,

what we're going to say is we want to invest that money so she could peel away a percentage of that money and be able to live without depleting all of it. But let's answer your other question too. Let's say you get to 45 or 48 and a couple of things have happened along the way and you're not where you need to be. Then yeah, I'd buy another 10-year policy or a 15-year policy that will push you maybe to 60 to 65 that will be a bridge policy. I wouldn't see a problem with that at all. Yeah, you can always add more life insurance, and you can do it while you're young. And let's say your income goes up, you can add another chunk of life insurance policy to make sure that you have that 10 to 12 times your income. Does that help, Seth? Absolutely. Thanks, guys. I mean,

there was something I was missing there, so that sounds good. Hey, it's a great question, man. I love it. Awesome question. Way to go following the plan and doing this stuff. All right. Ileana joins us in Hollywood, Florida. Ileana, welcome to the show. Hi, Nancy. How are you? We are doing great. How can we help? Yes. My husband and I retired, and we have a house that we own $20,000. We don't have much savings.

We need to know if it's better to refinance and have money from the house or take a loan and pay off the house because all our investment is in our home. So how can I get that cash out? I don't like the options you've laid out so far. What you're asking for is should I do a cash out refinance? So should I rob equity from my house and put myself deeper into debt or do I take out another loan to pay this one off,

so now I have another loan sitting over here, which means we're just moving around the debt. Do you need money? Is that the problem? Yes. So how much do you guys have in savings? Not much, around $6,000. What do you need money for, hon? We have retirement, and we have plans to do a couple of travels.

Do you have any money in retirement? No. So you have zero in retirement and you have $6,000 cash to your name. Right. What did y'all retire from? Excuse me? I didn't hear you. What was your trade before you retired? What did you all do for a living? Oh, okay. I worked for the school system and my husband worked in the building.

So do you have a pension from the school system that's still coming in? Yes. Okay. And does he have a retirement account of any kind or or when he quits building, then he's not getting any more money? He has a retirement, just a retirement account. He's in retirement. I'm receiving retirement and also my pension. So what is your monthly income right now in retirement, since you're both not working? Our monthly income is around $3,400. $3,400 a month is what you guys get. Okay. Is that enough to live off of? Are you guys surviving? Yes, we are. Okay. And you're able to pay the mortgage. Yes. Okay. What caused you both to retire? Medical conditions. Both of you? No, my husband made the decision to retire, and once he reached the age, and I have to retire by medical conditions. Okay,

well, if he's able to work, he may have to go back to work if you guys want to live this dream of being able to travel. Because truthfully, you didn't plan for what your dreams were. And so right now you're wanting to travel the world, but you're broke. And so you may at some point go, you know what, if we want to do this, we're going to have to sell the house and we're going to have to rent. And if we can make that work with our pension, that will give us some money, but I want you to invest that money because you guys are, how old are you two? I'm 58 and my husband is 63. Okay, 58 and 63. I mean, you guys still have- 53 or 63? Excuse me? You say 63 he is? Yes. Okay. 63. Okay. So you guys still have a lot of life to live and you need money to be able to do that.

And so if $3,400 is going to cut it for you, that's great. But it sounds like you're wanting to do a lot more. You want to travel. You want to have fun. And so that means we've got to have a different picture of what that life is going to look like. And please, please listen to me. Under no circumstances take a cash refi. Cash refi. Do not put your house on the

block for a loan, especially if y'all aren't going back to work because you will lose your home. Do not do that. If you want to downsize and pay cash for another property, that's the way to do it. But right now, you guys do not need to go backwards while you're in retirement with no income. Bad plan. Thanks for the call. This is The Ramsey Show. I'm Ramsey personality, George Campbell, joined today by Dr. John Deloney. Open phones this hour, 888-825-5225.

Call us up. We'll talk about your life, your money, your mental health, whatever you want to talk about. And speaking of mental health, John, I've been watching the news. I've been on social media lately and it's not going well not going well for me and for everyone for everyone that's right one of the reasons is this new word that's been popping up the metaverse and uh you just gave me hemorrhoids live on air i didn't mean to do it john don't blame me for that but here's the thing snoop dog launched his own virtual world and someone inop Dogg's virtual world that he built in the metaverse through this platform called Sandbox, someone paid to be his neighbor.

And they paid hundreds of thousands of dollars for the virtual real estate next to Snoop Dogg in a virtual land. This hurts my brain. Can we just all... Okay, I like cool stuff. I do. I like act like I don't know what's going on. I do. I like cool stuff.

I like shiny toys. I really do. Can we all just stop for a second and understand the platform that is the metaverse, which is this idea that I am going to live and buy things and finance things like clothes and cars and window drapes and hand towels in a world that does not exist. You want a stat that will make it even worse, John? January alone, sales of Metaverse Real Estate topped $85 million.

Do you know how many homeless people that could have fed? A lot. Or how many soup kitchens could have filled up? It's clinical insanity if you ask me. That I'm buying real estate in a place that doesn't exist. That's even different than buying swords in my video game or whatever, laser guns. Sure. That helps me be more laser-y or something. Or skins video game or whatever, laser guns. Sure. That helps me be more laser-y or something.

Buying skins in Fortnite or whatever the kids do these days. Go for it, man. It helps you be more formidable and you're playing in your alternate universe. That's even different than this. This is we have too much fake money. We owe $30 trillion as a country. We have too much fake money in the system, and we have not enough social capital to go hang out with other humans.

And so now, instead of a softball league, we are buying fake homes in fake places. And here's what's interesting, John. This falls into your lane because the CNBC article says, this is creating more loneliness. The metaverse could be a serious problem for kids, experts say.

And it goes on to talk about how there's plenty of money to be made in the metaverse and psychologists and mental health experts say the race to turn a profit is taking attention away from a crucial question. Will the metaverse be a safe place, especially for kids and teens? The answer isn't encouraging. The answer is shocking.

1,000% no. Our bodies are not designed to sit for 12 hours a day and exist in another place. So you're saying the solution isn't more disconnection? Stop the presses, everybody. No. The company says their internal values are move fast, build awesome things, and live in the future. When every single psychological marker suggests that living in the future is anxiety.

That's what it is. And you should instead live in the present. And move fast. In the now. That also feels like bad advice. I don't even mind moving fast if you're going somewhere productive. It's worth going. Right?

We're building the future of social connection. I will tell you right now that anything built on imaginary places will ultimately, has a long enough tail, will fail. Right? He encouraged workers,

this is Zuckerberg, to focus on long-term impact. I will tell you that the long-term impact of not moving your body, not co-regulating with other human beings in the same physical space,

and buying things that don't exist in places that don't exist, the long-term impact will be one thing, hurting children, hurting adults, increasing the loneliness and the anxiety and the depression that is already blanketing our culture.

We need less imaginary places and more kick a soccer ball around with your kids can i tell you something that i did last night sure i got home late we were here late last night um we do having meetings and shooting things and whatever um shooting videos and i got home late and i have a thing where i go open the door to my kids rooms i just say a quick prayer and i just tell them goodnight I want to make sure they hear my voice even though I know they're asleep and my six year old daughter her light was on her room

and I opened her door and she was reading a book which she does to self soothe if she wakes up and I looked at her and she looked at me got quiet for a second and I said I will destroy you in air hockey if you want to bring it on

right now. And she looked at me and kind of furrowed her brow and grin from ear to ear. And she goes, it's on. And she got up. I put her on my shoulders. I carried her under the basement where I've got this junky air hockey table. We played five minutes. Five minutes was all. I put the game on for five minutes. We talked father, daughter, trash. We played, we laughed. She told me about something that happened at school that I otherwise never would have had it took five minutes to connect with my kid carried her back

upstairs she was almost asleep before we got up there laid her down was able to kiss her goodnight tell her that I loved her woke up this morning there was no drama this morning it was a good morning it's that social human to human connection and it sounds so dramatic and so hard. The world needs more of that, not more,

hey, man, tell me what Snoop says when his imaginary Snoopness comes out and mows his imaginary lawn with his imaginary lawnmower. What a time to be alive, my friend. And there's an interesting quote here. I think parents will be asking themselves, do I feel safe knowing that Mark Zuckerberg is the guy in charge of deciding who influences my children? That's a powerful quote.

Well, Mark Zuckerberg and his now calling his employees metamates. Hard nope. I'm going to hard nope on metamates. You and me are now metamates. Nope. Nope. That just feels bad hard nope on MetaMates. You and me are now MetaMates. Nope. Nope. That just feels bad coming off the tongue. Yeah.

They should have pitched that better in the marketing meeting. But, John, there's a lot of issues here, and there's a lot of things that are yet to remain unseen because we just don't know. What, do they have a $230 billion drop in market value, the company? Yeah. Everybody seems to see it. But there's a few folks saying, let's carry on.

Folks, be with real people, please. Please be with real people. Good word. Well, let's go on to real things, like real people who have real questions. And that is Katie in Wilmington, North Carolina. Eat real food and live in real... Katie, do you live in a real house? Hey, do I live where?

In a real home. do i live where in a real home yeah i do that's so great welcome to real world so good to see you katie talk to you thank you i'm gonna step out of the metaverse now perfect um so i was wondering my boyfriend told me to call in first of all, but I was going over something. I was thinking about taking out a loan to pay off some medical debt and use my car as collateral. I'm going to hard nope that one too, just like I did on Metamates. Yes. I'll second the hard no. So how much medical debt do you have?

I figured it would be about $12,000. What happened, hon? I was hospitalized for something I wanted to go into anymore. I'm so sorry. That's hard. It was a mental health emergency. I'm so sorry. It was a mental health.

Okay. I'll tell you real quick, Katie, why it's a bad idea. It's a real dangerous move because your main mode of transportation could get repossessed because you tried to move this debt around. So there's nothing secure about these secured loans that you're talking about. and that's paying for it, that's working out a payment plan, negotiating the bill down if you can, working with the hospital or whatever medical provider you had for that. But there's no shortcuts when it comes to getting out of debt, unfortunately, and that's what this is. Hey, Katie, I've walked alongside countless, I can't even count how many folks who have had to spend some time in the hospital for psychiatric challenges, for all kinds of challenges. Most of the people that I've met with when they get the bill,

when they get out, have some sort of shame or embarrassment. They just want to put the whole thing, quote unquote, behind them and move on. Do not be ashamed. You did a hard, brave thing going to get the help that you needed.

I'm proud of you. You're, you're, this is a part of your healing journey. But like George said, do this the right way. Hold your head up high. Go negotiate that bill with the hospital and pay it off over time. Do it right.

You're worth it. You're worth it. You follow the baby steps, the debt snowball, and call us back when you're debt-free, and we are going to be celebrating with you, Katie. Thanks so much for the call. This is The Ramsey Show. I'm Ramsey Show. I'm Ramsey personality George Campbell, joined today by my friend Dr. John Deloney,

and we are taking your calls, 888-825-5225. Rafael joins us in Tucson, Arizona. Rafael, welcome to the show. Hi. Hey, how can we help today? How are you, brother? Good, thank you. Thank you, brother? Good. Thank you.

Thank you for taking my call. I am going through a divorce. I'm sorry. Yeah, thank you. How long have you all been married? 25 years. Oh, gosh. I'm so sorry, man.

Yeah, it's hard. Yeah, man. That's heartbreaking. How far are you guys into the process? Um, we just started it. Just started? Like five months ago. So no paper signed or anything like that yet?

No, nothing. Actually, we are in good terms. Okay. But the thing is we have a small child, and we want to be close to her, and we were thinking to refinance our house and buy a land in order to build a house with a casita on it. And I was wondering if that's a good idea. So you want to buy land and build property to where you both live on that property?

Yeah, but my wife and my daughter, they're going to live in the main house, and I'm going to live in a small casino, so I can be close to her. Yeah, so what's the impetus for this divorce? You sound like y'all are working awfully close together and on the same page for two people who say after a quarter of a century we need to separate. Can you repeat the question? What's the nature of the divorce? Why do you feel it necessary to split up? I think communication is the main thing.

We have a lot of problems for years and we try to stay together and stay together and I think that it's not possible anymore. Okay. I mean we tried everything. So when you when you make the decision to get a divorce you are taking a romantic relationship, a friendship, a co-parenting relationship, and you are choosing to intentionally turn it into a transactional relationship. This is now a business deal. And I would tell you, if you were unable to communicate in a way that keeps you safe, that keeps your relationship whole, and you find it necessary to divorce after 25 years, that sharing property and living in a back house is a disastrous idea.

What I think you're wrestling with right now is you can't imagine your life without seeing that baby girl every day. Is that true? Yes. It's hard. I have a that baby girl every day. Is that true? Yes. I have a little baby girl, man. I can't even wrap my head around it. I was just telling this last segment,

I went and got my daughter up last night at 8 o'clock so I could spend five minutes with her. I can't wrap my head around that. That is a consequence of you and your wife's divorce. What you're not thinking through down the road is if your soon-to-be ex-wife brings somebody else home, or when you meet somebody and start dating again, or when she has a big party, and fill in the blank. It's just a recipe for disaster. Please don't do this, okay? Get yourself an apartment in the neighborhood where you're close.

Make sure every agreement and disagreement is written down. This is a transaction now. And you're going to need to protect yourself in writing so that you have legal standing to see your daughter at regular intervals and all that stuff that will happen in the courts. But if you're going to make this hard decision to say we are done, we cannot be in the same place anymore, what's worth dividing this house up, then you have to go through and divide the house up. And I know that is. I'm talking to you.

Forget the radio. I'm talking to dad to dad here. I can't think of a more gut-wrenching decision than what you've made. Okay? So I'm not making light of it. I've just been the other side of this thing with too many couples over the years. This is a two-year and three-year and five-year and ten-year decision here, okay? So do not sell your house and buy a piece of land and live in the pool house.

Don't do that, okay? Okay. okay so um then just uh um leave it on the apartment and uh that's it and move on yeah i mean i guess yeah i mean that's really the choice or y'all you can as part of your divorce decree y'all could sell the house and split the place split the whatever however y'all decide to do that to break up your your um your estate and she can buy a small house you can buy a small house i mean it can be whatever that that stuff's all negotiable and y'all figure that out with your lawyers um or figure it out together and then go down to the courthouse together and sign a piece of paper but y'all y'all could choose to

be civil and be grown-ups about the separation which would be fun which would be wonderful if you could do that for both for y'all and for your kid. But yeah, that's, that's, that's my recommendation, man. Um, don't, don't live in the pool house. Yeah. Uh, to what John said, Raphael, you don't want to be splitting property taxes and your names on the same stuff as her. I mean, this is now a business transaction and that means we got to go our separate ways and that's hard. Or that her name is only on the deed and she evicts you at some point out of the pool. The whole thing's a mess. So avoid that.

Live as close as you can to your daughter, but you've got to cut ties here. Thanks for the call, man. That breaks my heart, brother. We're thinking about you, man. Allison joins us next in Columbus, Ohio. Allison, welcome to the show. Hi. Hey, how can we help today?

Hey, I was just calling with a question about small business ownership. My husband has a small business and his is a sole proprietorship, so he doesn't have any employees. And any time we have sat down and tried to do budgets together to work through the debts that we do have, we've always found it kind of difficult because with a business, you don't always have a set amount of income if you have a piece of equipment down or an unexpected emergency. So when we go to do that, we've always wondered specifically. My first part of the question is, do I separate the business side from the personal side since it is really all within our family when we go to set up a budget and have two different parts? Or do I keep it in one part?

And also, as far as emergency funds go, do we keep that $1,000 emergency fund or do we maybe make it a little bigger to account for his business needs? How much debt do you guys have? Well, we have different kinds. He owns two large pieces of equipment and we have debt on one of them, probably about in the amount of $16,000 or $17,000, I would say. We also have a personal car loan, and that's about $13,500, I would say. And then we have some consumer debt. So we have some on credit cards, both the business and some personal ones, and that's probably between $18,000 to $20,000. All right. So if I'm you guys, here's how this works. All of that business debt, he signed for. Therefore, it's your personal debt. So in that regard, you're going to put all of this in the debt snowball together and attack it smallest to largest regardless of the interest rate. Now, on the bank account side, we need to have separate finances for what's going on in the business.

Please get separate accounts. Now, I'm not saying – We do have separate accounts. Now, his income, that's going to be part of the budget. But the business expenses transactions we need to keep that separate so it doesn't get too muddy okay he needs to pay himself a salary out of the business not just dump it all into the checking account you know what i mean okay yeah how long has he had this business we? He's had it for maybe going on two and a half years now.

He has semi-trucks. Do you all move money back and forth? Yeah, he gets paid by the company he has a lease agreement with in his business account, and then we move money each week according to our needs to our personal account. Yeah, see, that's a recipe for disaster. Make sure you've got a budget that says this is how much we're going to take out. It's too easy to look at that as some kind of

as a credit card, basically, is what that's going to look like. You're going to end up bankrupting your business doing that. Okay. And once this debt is paid off, I want him to run this business completely debt-free, which means if he's going to get a piece of equipment, we're going to cash flow, we're going to save up for itundreds of millions of dollars. And he did it all, that's right, debt-free, with cash, and he can too. This puts this hour of The Ramsey Show in the books.

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