The Ramsey Show - App - Dude, You Are $430K Worth of Screwed!

Episode Date: May 31, 2022

Dave Ramsey & Kristina Ellis discuss: The best investment strategies, How to get started after graduation, Selling your house to get out of debt. 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

Live from the headquarters of Ramsey Solutions, it's the 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. This is the Ramsey Show. We help people build wealth. We help them find and do work that they love and that matters. We help them create amazing actual relationships. Christina Ellis, number one best-selling author and Ramsey personality, is my co-host today as we answer your questions about your life and your money. Riley is going to start off this hour in Minneapolis. Hi, Riley. Welcome to the Ramsey Show.

Good afternoon, Mr. Ramsey. Good afternoon, Mrs. Ellis. Thank you very much for having me on the show today. Our honor, sir. How may we help? I just wanted to start by saying thank you for all that you and your team do. We're very fortunate to have you around here in the United States and all over the world listening to how you help people.

Essentially, my question today is if I'm missing anything. I am currently investing 20% of my 401k through my employer. I'm currently maxing out my Roth IRA. I am currently doing monthly distributions to mutual funds as well as a house fund that I have set up into a Fidelity 500 index fund based on the S&P 500 index, in addition to a couple more high dividend yield stocks. And I really just want to ensure that I'm doing everything I can to set myself up for the ability to live and give like no one else in the future wow i'm gonna be off friday you want to fill in

i sure wish i had the opportunity i mean you got this you got this down dude you got it so dialed in how old did you say you are i am am 23 years old. What do you make? I make between $60,000 and $70,000. My main job, 40 hours a week, I'm making just over $61,000. And then my side hustle, I do about 15 to 20 hours a week. I make $14 an hour plus tips. How did you learn to do all this by the time you're 23? I had some fantastic leaders growing up through sports and a father that worked extremely hard, dropped out of college at 18, has been working for the same company for 35 years and taught me how to work hard and be consistent and be a good person.

Wow. Good for you. Pretty amazing. Thank you, sir. You're single, 23, you make 70, you're putting all your money in investments right now, and you're saving towards a house, and you're 100% debt-free. I don't have anything to add to this equation. You're heading in the right direction.

Now, the next thing that will happen usually is you do buy the house, and then we'll be about the business of getting it paid off as soon as possible after that. And you'll back your investments down to 15% of your income at that point until you get that done. But I don't see any flaws right here. Well, what's the timeline for when you want to buy the house? What's kind of the goal you've set for yourself? So I want to move out of my house and actually move to the Nashville area

or somewhere a little warmer from Minneapolis within the next three years with my company. And then because of the company and the nature of the business I'm in, I'll probably be moving around quite often. So I was thinking renting for the next probably 10 years until I settle down in a place that I'm going to be longer than five years and then get a 15-year mortgage and try to pay it off in five. So you're thinking about moving in three years and then buying in 10 years? Yes, ma'am. Okay. So you've got time to save up that down payment. You've got time to save up the purchase price. Yes, ma'am. I currently have a little over $30,000 saved up for the house or renting funds,

essentially, because I didn't spend my entire fund for college. I graduated a year early. Yeah, if you're careful when you make your move, even if you're not going to be there but two or three years, since you're going to be paying cash for the property, you may want to look at going and buying earlier than that 10-year mark. But, I mean, somehow I've got a feeling this is not going to unfold exactly the way you've got it lined out. You know, you get married, it could change this equation, as an example.

Like where you land, how often you move, what you do. All those kinds of things are affected then. So that's what I would look at. But I think you've got a great start. I don't see anything wrong with the direction you're going for the next 24, 36 months. Just keep rocking it, man. I mean, really, I don't have any fixes to this. Make sure you're being generous.

Make sure you're enjoying your money. Don't nerd out on every penny. Okay, so you need to have some enjoyment. And if those are not muscles you use very often, they can get atrophied. So force yourself in your budget. I'm going to blow this much money. I'm going to be outrageously generous with this much money. And force yourself into those muscle groups.

But it's not that hard. I think you can do it. You're pretty incredible. What a rock star. 23 years old. That's how it's done. What do we find these people zach is in franklin tennessee hi zach how are you i'm doing well how are you better than we deserve sir how can we help yeah so i'm just kind of wanting to get some guidance on where to get started and make sure i don't screw things up with my money uh I just graduated college a couple weeks ago, and I moved into my first full-time job.

Congratulations. What are you doing? Software consulting. Oh, wow. How much are you making? I'm only making $75 a base, and then I'm not sure how much on bonus. So I'm just going to say $75 for now. Good for you.

Well done. That's you. Well done. That's awesome. Thank you. Do you have any student debt? I do. I have about $20,000 to $22,000. I don't know the exact number off the top of my head in student loans. And then I have $8,000 in credit card debt. Okay. Are you familiar with the baby steps? Yeah, I am. I kind of sped read through the total money makeover, but I obviously didn't read it closely enough. So I'm going to have to, you know, reread that maybe. Yeah. Well, you right now you're in baby step two, which is where you pay off all your debt. And you've got a great shovel right now, 75K income just starting out plus bonuses. So right now we want you to get super intense, plus bonuses. So right now, we want you to

get super intense, gazelle intense about paying off this debt. You know, the good thing is, is you're just out of college, so you're used to living on beans and rice and being broke. So I want you to stay that way as you start to attack this $30,000 in debt. The temptation is when you get the big job to do something stupid, like go buy a new car. Don't do that. Yeah, and that's my my problem because i've only ever worked part-time you know hourly wages so i've never had a salary like this so i'm just trying to make sure i don't do you feel like it feels emotionally like you hit the lottery yeah pretty much yeah so and you didn't it's not that much it'll go fast you can blow it believe me so if you'll do what

christina said and keep living like a college student you could be 100 debt free in 12 months all right that sounds awesome that's i was kind of wanting to get what you thought a timeline would be for that because i'm you know well i put 30 000 i put 30 000 into 72 plus bonuses okay and i took out a college student's lifestyle and you can make it. Okay, yeah, that sounds good. That sounds great. Yeah, that's how I did it.

I mean, it really wasn't big math. It wasn't a sophisticated formula I used. 72 minus 30 leaves me 42. And you're going to get more than 72 because you got bonuses because you're sharp. You're going to get it done. So, yeah, go make some money.

Live on nothing. Be 100% debt free. And that will catapult you in your wealth building and into a sense of control and power you've got over your money. So, very well done, Zach. Hang on. Got a copy of Baby Steps Millionaires as our graduation gift for you. Show you how to be a millionaire. This is the ramsey show

in an uncertain world being a good steward of your money is more important than ever while some circumstances can't be controlled there are items within your budget you can take charge of, such as your health care costs. For nearly 40 years, Christian Health Care Ministries, or CHM, has provided a budget-friendly means of sharing for medical bills when our members need it. Learn more by visiting chministries.org slash budget. That's chministries.org slash budget. Christian Healthcare Ministries is a Ramsey Personality, is my co-host today in the lobby of Ramsey Solutions on the Debt Free Stage. Scott and Stephanie are with us. Hey guys, how are you? Dave, it's an honor.

So great to be here. Honored to have you. Where do you live? Western North Carolina. Cool. Welcome to Nashville. How much debt have you. Where do you live? Western North Carolina. Cool. Welcome to Nashville. How much debt have you paid off? $215,000. Way to go. How long did this take you? Five years. Five years. And your range of income during that time? Around $170,000. Cool. What do y'all do for a living? Finance in the insurance industry. Okay. Both we do yeah we work for the same company okay good for you fine what kind of debt was the 215 000 mortgage our house you paid off your house

we did dave look at it where people i know way to go you guys very cool what's this house worth right now it's about 400 yeah i love it how old are you two? 48. 48 years old. You have a paid-for house. We do. And we started the journey in 2011 with you when we first got married because we didn't want to be the couple that fought about money. Huh. It took us two years to get out of debt.

And then we lived debt-free all the way up until we moved from Colorado to Western North Carolina and bought our house. Wow. Way to go, you guys. So we've been with you for a long time. Yeah. Yeah. Ten years plus now.

Eleven, yeah. That's right. We're used to seeing you up on the projector screen. At the church. At the church. Oh, back in the day. Yeah. Back in the day.

Exactly. It's a $100 book and CDs, and it's a fantastic, fantastic classes that we had. Well, thank you. Yeah. Very cool. Well, I'm proud that we had. Well, thank you. Very cool. Well, I'm proud of you guys. Well done. Yes. How does it feel to not have a payment in the world?

Amazing. Very freeing. Incredible. So tell us about the journey. What did you all do to get out of debt? Well, we stuck to a budget, of course, and then we pretty much gazelledelled our house to be honest with you and it took a few years to do that so we just put everything towards our mortgage every month we had

residual about eight or nine thousand dollars we put towards the house every month wow just knock it down knock it down knock it down five years later you're done we're done exactly you can feel the enthusiasm with you guys. Like, it can just like seeing you through the glass. It's like, whoa, I can feel the energy. It's amazing. What would you tell people is the key to getting out of debt? Being on the same page.

Being on the same page. I mean, 10 years ago, when not, well, we've been married a little bit longer than 10 years, but we said we did not want to be that couple that fought about money. We will not be that statistic. And so that's when we were introduced to FPU. Okay. And we never looked back. And so those people that are out there that may be thinking of doing the same thing, just do it.

Just do it. Make sure you have a great partner to be on your side as well because it takes two people. Yeah. And just do it. You know, we had a lot of people of people we would say we're about to pay off our house they would say well why we want why would you want to do that why did you do that why wouldn't i yeah and so you know you always say who is your biggest cheerleader each other you're each other's cheerleader yeah yeah for sure that's so good well i hope people on the other line can catch some of that enthusiasm because that's just incredible. That's just so powerful.

So now what? You're completely debt-free. What are you going to do next? Well, we're continuing our investments exactly as we have been, 15% and even more, putting towards everything you've taught us. Well, you ought to be able to go do something big. What are you going to do to celebrate? Italy.

The Olympics in Italy. All right. Now we're getting down to it. That's right. All right. That's a good trip. But first, we're going to pay off our gas bill of driving here. Gas prices.

Well, maybe Biden will pay it off for you. Maybe. We don't count on it. I wouldn't hold my breath. Very good, you guys. Very good. We live in a beautiful place in the Smoky Mountains, so it's really we're just going to enjoy where we live and what we do

and just be appreciative of the journey and love everything we've built for each other. So how are the investments going? What are they up to? Well, they're about $100-something thousand. Okay. So you're about three years from being Baby Steps Millionaires then. Yeah.

Yeah. Way to go, guys. But what we gazelled the house, the amount that we gazelled the house with, we're going to start to do the same thing with our investments. It's going to be. Might be two years then. Might be two years then, yes. Yeah. Good.

Very good, guys. That's fun. It's so much fun. You guys are impressive. Thank you. It's so great being here. I just can't even- Emotional?

It's like the previous debt-free screamers that were here, and they said it didn't really hit them until they walked in the building. Yeah. Same thing. I don't think I've been this excited since our wedding day. Oh, my gosh. Yes. Wow.

This is remarkable. Can you explain how that feels for the people who are at the beginning who are feeling the weight and the struggle of having debt? Can you explain just how good it feels to be standing there today? I'm doing everything I can to not break out in tears right now. You get to make different decisions with your life. You get to make different decisions as a couple when you don't have to worry about your money going towards other things and other people.

When you don't owe other people, you just get to make different elevated decisions as a couple that you may not get to make otherwise. And so it's very freeing and the world is your oyster. Amen. Well, you got 170,000 coming in and nobody on the hook that's right nobody's owed a thing you can do whatever you want to do now that's right italy you can you can do all kinds of stuff way to go you guys very very proud of you you are very impressive yeah those are you sir honor honor to meet you honor to meet you good stuff to meet you. Good stuff.

We got a copy of Baby Steps Millionaires for you because that is the next chapter. And as we said, that's about two years off probably, something like that. We've got another one-year subscription to Financial Peace University. You can give that away, pay it forward to somebody. I'm sure you know somebody has been inspired by your story and needs to do what you've done. Same thing with the Total Money Makeover book we'll give you you we'll give you lots of stuff to give away so you can pass it along and and celebrate this and we're so proud of you guys you're an amazing couple very well done yeah thank you so much how's are you sir thank you very much very cool scott and stephanie

from north carolina 215 000 paid off House and everything Looking at weird people They did this in 5 years Making 170 Count it down Let's hear a debt free scream 3, 2, 1 We're debt free Yeah

This is how it's done, ladies and gentlemen. Whoop, whoop, whoop, whoop, whoop. Well done. Oh, man. It is emotional to work five years to get to do something and then get to do it. Yeah. That is emotional. And now I hear that.

I mean, to do the debt-free scream, but the debt-free scream really doesn't mean anything. It's what means something is the fact that you're there and that it's the celebration of all the hard work all the sacrifice and by god winning you know just winning ring the bell yeah goodness i almost teared up just watching them out there just seeing all that emotion it's like all their hard work all their sacrifice all the putting off things you know for now so that they can be in this moment. In this moment, it's just like, whew, you can just feel it. Pretty incredible.

Beautiful family. Very, very well done, you guys. That's powerful stuff. So what do you do? You have to pay attention. And most people just don't. They've been paying attention for five years longer really as he said started back in 2011 they worked through their other debts and so the typical baby steps

millionaires that we have studied is debt-free house and everything in about 10.2 years so there they are 2011 to now that's about 11 years right so there we are, 2011 to now. That's about 11 years, right? So there we are. The typical is about 51 years old. They're a little younger than that. So they're pretty typical on where they are. They're not quite a millionaire, though, but they'll be there before they're 50. And it just can be done. It can be done.

Don't let people tell you that the government's going to do it for you. They're not. They're stupid. Don't let people tell you that your company that you work for is going to do it for you. They're not. They're stupid. You're in control of your life. Thank God you're in control of your life. You're the best shot you have at winning in your life. You get to decide. You're in control. Yes, there's things outside of your control. There's crazy people out there. There's people that don't behave the way they're supposed to behave. There's all kinds of things you run into.

That's part of the equation. But you're in control of you. And whether 10 years from now you're winning or not, it's 98% in your control. It's up to you. So are you going to do it or not So are you going to do it or not? Are you going to do it or not? This is the Ramsey Show. We'll be right back. Well, occasionally here in the studios, a good friend drops by. Senator Marsha Blackburn has been a good personal friend.

She and Chuck are friends of Sharon and I for, gosh, 25, almost 30 years now. Yeah, I can't believe it. Something like that. We're getting old. Long before you were a senator and long before there were three people listening to this radio show. So there's only in Tennessee back in those days. But a lot of water under the bridge. And I don't want to take a bunch of time going down memory lane or anything.

I want to get straight to it. You guys, you and Rick Scott and a couple of other senators have put forth a bill, and you told me you wanted to come by and talk about it to stop the spending in the middle of inflation. Spending while we're in inflation just doesn't make sense mathematically. You're right about that, because what are we doing? We're borrowing money from China to spend on programs that are going to outlive their usefulness by the time our kids and grandkids have to pay the bill. So it doesn't make any sense. So my legislation is very simple. It says that during times of high inflation, which is defined in statute as 4% or greater. During those times of high inflation, if you want to pass a spending bill,

you have to do it with a two-thirds majority. That makes sense. That means that whatever you're going to spend money on, then two-thirds of the members of the Senate and the House have to agree that this is a worthy endeavor and good use of the taxpayer dollar, because it's not Congress's money, the president's money, the bureaucracy's money. It is the people's money.

And the problem is, if you're going to spend money to stimulate an economy where there's already a shortage of things causing prices to increase, you're going to spend money to stimulate an economy where there's already a shortage of things causing prices to increase, you're going to make it worse. Too much money chasing too few goods. You're going to make it worse. That's right. That's exactly the wrong time. It seems to me you don't have to be a politician, left or right, and you don't really have to even –

you certainly don't have to be an economist. You just kind of have to have some basic common sense that's right and this is one of those common sense measures this makes sense to everybody that if you are doesn't make sense to some of my friends across the aisle of course or those that are big spenders but it just says you can't do this. You know, take, for instance, COVID, $6.8 trillion. Biden's pushed out the door on COVID and wants another $2 trillion for another budget. And you can read J.P. Morgan or Morgan Stanley's report. What do they say has been a major contributing factor to inflation?

Biden bucks. That's right.iden bucks that's exactly right it has been because it's disrupted the labor market i mean i've said this on fox i've said this on here as well i mean there's three components to me to this inflationary market right now there's the energy component the cost of gas that's a hundred percent on joe biden's desk there's the disruption of the supply chain then when we shut down the factories that's not his fault but he is living in that reality and he could do some things to smooth it out but that one's not on him and then there's the disruption of the labor

market which is about 75 on him that's right because he screwed the labor market up which you know by the way that loaf of bread going up the reason it went up is we pay a guy thirty dollars an hour to put that loaf of bread on the shelves now we used to pay him ten dollars an hour and that's the disruption of the labor market when you pay people not to work magically they won't work that's right and then the the cost of all the supplies going into that loaf of bread costs more same thing has happened with coffee coffee's up 143 percent eggs are up 50 percent you look at all of these i'm just having trouble getting out of breakfast and you you're here at the beginning of the day and you've got to go all the way till you turn the lights off and the price at the pump here's another thing if biden wanted to really do something to help our European allies and to help with inflation, start the energy market back up.

Yeah. He has turned the faucet back on. That's right. He has put 69 regulations on the books, major regulations since he took office. Most of those are aimed at the energy market. Now, by comparison, during Donald Trump's four years across the board, he did a total of 22 major regulations, but he took 1,600 off the books his first year. But let's get the energy market going because the hydrocarbons, the polymers that come from that, that affect

all of the wrapping that your food goes into, the plastic bags, polyester, the clothes you wear, synthetic fabrics, shoes, you name it. In addition to the cost to drive the car, heat and cool the house, tires that go on that car. All of this is suffering because of what joe biden did on day one to begin to adversely impact the energy market yeah the energy the energy thing there's no question that's on his i mean that's a yeah that's a turn that's a switch he turned on can turn off back and forth the others is a little harder for him to manipulate you can't get the genie back in

the bottle on the biden. Don't do it again. But you can't get it back in the bottle. That's disrupted and it's thrown this labor market askew. And, you know, we've got entire industries are having trouble operating from a labor shortage at this point, which is driving the cost of labor up, which is driving inflation. And that is a result of that. Now, again, the shutting down a factory for six months uh you can blame that on fauci you can blame it on covid you can blame it on economic suppression loss of

freedom we can talk about all kinds of things there but that's the uh the earthquake at sea the tsunami is the resulting shortages that came in afterwards and you know we've got a you know i'm building this building up here on the hill and I've got my steel went up 3x on the building, or was going to. I pre-purchased it, so it didn't. But, I mean, we saw it coming. But the, all the, you know, and that's driving the housing market. All these things are layering in there. I guess the other one to add to it, there's a fourth component.

Tell me what you're thinking about what the Fed's doing with these interest rates. And what the Fed is trying to do is get in here and cover up mistakes. And so, you know, I think that they don't want to admit that Bidenomics is not working. And they don't want to admit that people are not going back to work. I've been in four Tennessee counties today. And, Dave, every one of these county mayors have said, we don't have enough people to fill the jobs that are open in this county. And, you know, I think that when you listen to people like Janet Yellen,

what do you hear her say? That the economy is doing great and they've created all these jobs. No, people are going back to the jobs that they had and that they left during COVID. And they haven't created all these new jobs. The economy is not expanding. That's the only way you could have new jobs. That's right. We have a recession, a contraction of the economy's not expanding that's the only way you could have new jobs that's right we have a recession a contraction of the economy it appears we're going to have a second quarter of a contraction and it's not a the boogeyman the recession is coming it's not that but it's

two consecutive quarters it does appear we're going to have a recession maybe light it may be just those two quarters but uh we're pretty much going to be down again on GDP, I think. That's what all the indicators I'm reading are. But that does not indicate new jobs. That does not indicate a booming economy. It's a shrinking economy. That's the very meaning of the word recession. Yeah, you're right.

And, you know, it's just, as you said, simple economics. When you have too much money in pursuit of too few goods, what's going to happen? The price goes up. I can't let you go without 30 seconds on student loan forgiveness. You know, we hate the idea around here while we're still making the loans. Do you see any future where we quit making those loans? I have said repeatedly that one of the big mistakes that Obama made was federalizing student loans and bringing it all in-house, taking it away from your local community bank. Because the rate doubled, the interest rate doubled, the complexity, the invasion of privacy. The federal government needs to be out of the student loan business.

Any chance that that gets through the Senate ever? I would hope so. A new day is coming. Well, there's going to be a lot of stuff happening after fall, I suspect. Senator Marsha Blackburn, Senator of Tennessee, First Lady, Senator of Tennessee. Our honor to call you a friend and honor to have you as our senator. Thanks for stopping by. It's good to be here.

Thank you. We'll be right back. Our scripture of the day, Psalm 37, 23 and 24. The steps of a man are established by the Lord. When he delights in his way, though he fall, he shall not be cast headlong, for the Lord upholds his hand. Nelson Mandela said, Do not judge me by my success. Judge me by how many times I fell down and got back up again. Amen to that. Inflation is affecting everyone, as we were just discussing, from the gas pump to the grocery store.

While you can't control what happens with the economy, you can control what happens with your money. The best way to do that is with EveryDollar. The EveryDollar mobile app lets you check your budget from anywhere, and you can always make the right money decisions. And if you're in this with a spouse, the both of you can be watching the thing together. It's pretty amazing. When you get on a budget, you'll be in control of your money. Start budgeting for free. Go to ramseysolutions.com slash every dollar. Claudia is in Orlando. Hi, Claudia. Welcome to the Ramsey Show. Hi.

Thank you so much for having me. Sure. What's up? All right. So my husband and I are on baby step number two, and we're planning on relocating within the next year. We're debating if we should sell our house now while the market is high and rent until we decide where we're moving to or wait until we're ready to move but risk the price of the house tipping. If we sell now, we could make enough profit to pay off our debts, build an emergency fund and have the 20 percent down payment for our next home.

But rents are on five. You think you're going to move in the next 12 months? Yes, we will. OK, no, you don't need to worry about the price of the house dipping. It's not going to move in the next 12 months? Yes, we will. Okay. No, you don't need to worry about the price of the house dipping. It's not going to dip in 12 months. Okay, so you think that we should stay in the house and then just wait until we're ready to move? Yeah, it might slow down and be a little bit more difficult to sell, but the price, the value will not go down.

All right. So, no, I wouldn't. That's my prediction. Now, that's worth every dollar you paid for it right you know economists and weather forecasters are the only ones that could be wrong most of the time and keep their job right so i'm not either one i'm not either one but i did look at the weather app earlier and um so no i i honestly i mean i've been doing real estate for 40 years, and I've watched it a lot. The number of times that real estate prices went down in my lifetime is once.

That was 2008. They've not gone down. Okay? Now, in certain neighborhoods, they might go down, but that's a neighborhood problem. It's not an economy problem. Okay. Now, what is going to happen as interest rates continue to go up and as some of these supply chain and inflationary things smooth out,

probably the rate of price increase on houses is going to slow. So like last year in 2020 or 2021 we saw a 32 increase in 22 we're projecting a seven percent increase in house prices so the the increase is going to slow down but that's different than it going down in value we do not we don't have any indication the data we're seeing at ramsey that's going to go down in value So I would not go to the trouble to sell it early. Get yourself, go through all this crap, have to move. Oh, God. And go rent for a year?

No. All just because you're afraid it's going to go down? No. You can hear everyone who's shopping for houses right now collectively groan. It's like, oh, man. They're not going down. Yeah. They're not going down.

They're just not. There's too much of a shortage. I mean, we still have way too many buyers chasing too few sellers right now. It's still still that. And that's not going to subside completely in one year and go the other direction. I mean, what would have to happen for house prices to go down? Have to have a complete inverse of where you are right now. Had to be 10 houses for sale for every buyer instead of 10 buyers for every seller.

And that's not going to flip that dramatically in one year. It's just not going to do it. Well, for all the people who just groaned, I'm in there with you. We're currently in the market for a house and can feel your pain. But I guess that's the Ramsey prediction. It's going to go up. It's going to go up. It's just a matter of how much,

and hopefully it will calm down because this white hot is not good for anybody. No. It makes the sellers crazy. It makes the buyers crazy. It makes the real estate agents crazy. They were already crazy. I mean, it's just crazy everywhere.

It's just no fun. Coleman is in Billings, Montana. Hi, Coleman. Welcome to the Ramsey Show. Hey, how's it going? Better than I deserve. What's up? So I have two statements and one question.

So first off, me and my wife just got married two days ago. Congratulations. Thank you. The second statement is that we are both doctors and we uh came together with 430 000 in student debt so my question is i know you guys state that we have that it takes about 18 to 24 months to get out of debt um for us it's projected to be about six years we were just curious on some ideas on how to stay good, though, intent, but as well we'd like to enjoy life.

Our pre-marriage counselors work with doctors, and they really noted that there needs to be times of enjoyment, and we just were curious on how we may do that. Okay. Well, I always use big numbers in my math and so um what is your income going to be two dollars for the next yeah for the next so she will be in residency for three years so we will have roughly 128 000 a year and then after those three years they should jump up to 230 250 and and i thought you said you were a doctor yeah i'm a doctor of physical therapy so oh pt

okay yeah yep so what are you making 80 i will be making about 70 yeah okay starting out okay she got $200,000 income for three years 128 for three years oh she's only gonna be she's gonna be making 61 i'll be making oh i misunderstood that was your household income yeah okay correct yep sorry when you say enjoying life what does that look like to y'all so me and my spouse's passion is traveling hiking in the mountains and a lot of family time and with her getting accepted to a residency program a few hours away from home to see family it would cost um i mean a good chunk of change each time why you get in the car and you drive over there

it's uh like a five-hour drive and then hotels to stay in well my thought is okay here's the thing um earl nightingale used to say that the problem with achieving a goal is not that what we have to do to get to the goal it's what we have to give up to get to the goal so you you your your counselor um is an idiot your pre-marriage counselor um because here's the thing you you know you want to define enjoyment of life as having 430 000 crushing you from the top down while you go running around acting like you don't have debt and call that enjoying life um i don't i don't agree i think that's really bad advice and so i think there's a lot of things you can do to enjoy life a lot of broke people have really a

lot of enjoyment in their life and dude you are seriously broke i mean seriously broke four hundred and thirty thousand dollars worth of screwed you are so broke it's unbelievable how broke you are and the sooner you guys just own that the better off you're going to be and quit walking around acting like it's all okay it's not okay now are you going to clean that up in three years no you're not going to clean that up in three years making 110 you're not going to do that but y'all have made a serious dadgum mess and we want to travel sorry when you signed up for this doc thing you you you kind of cashed in the travel card for a while i mean you may get to travel some and drive over and see mama some mama may

come over to your place and see you some but i mean dude y'all have a mess and yeah and i think you can redefine your definition of enjoying life like mountains hiking that's all free stuff you can still do that while paying off this debt my husband and i used to do trip tuesdays where we went on trips to little national parks and you know we're college age i was college age broke and you know that cost what 20 30 bucks in gas just to get there and hike and do something else that that you know if we want 20 30 bucks in gas just to get there and hike and do something else that that you know if we want to call that enjoying life have at it that's fine if you want to call dropping 20 grand on travel annually because that's called enjoying life because my counselor said to then your counselor's an idiot that's you know i'm just not gonna i want

you to understand what you're dealing with you have a mess and you're gonna have to pay a price to clean this mess up that puts this hour of the Ramsey Show in the books. We'll be back with you before you know it. In the meantime, remember, there's ultimately only one way to financial peace, and that's to walk daily with the Prince of Peace. Christ Jesus. Go to RamseySolutions.com and search for Get Started to get a plan for your money.