The Ramsey Show - App - Financing a Super Bowl Ticket Puts You in the Stupid Zone! (Hour 2)

Episode Date: January 23, 2020

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🎵 Looking for Super Bowl tickets but don't have the $7,100 cash? We're going to talk about it right here. 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. You jump in, we'll talk about your life and your money. It's a free call at 888-825-5225.

That's 888-825-5225. So Bloomberg News reporting, if you're looking for Super Bowl tickets but you don't have the $7,100 cash right now to buy a ticket, StubHub, who, by the way, just sold, eBay sold them for $4 billion the other day, StubHub is partnering with fintech company Affirm to let customers buy the tickets on a payment plan. Starting this week, the U.S.-based customers looking for tickets from $99 to $17,500 will be able to pay those off with interest over a period of up to a year. The new partnership between Affirm and eBay Marketplace takes effect this month and covers most sports and concert tickets.

Payment plans will let customers buy tickets similar to how many Americans buy cars, homes, or large appliances by taking on debt. Customers looking to buy with Affirm's financing will be asked to provide five pieces of information and will receive a credit decision within seconds, the two companies said in a statement. Approved buyers will be able to select payment plans that span three, six, or 12 months with annual interest rates ranging from 10% to 30%.

Tickets for the February 2 game in Miami between the Kansas City Chiefs and the San Francisco 49ers. Currently selling on secondary markets for an average of $7,100 each. At a 20% rate over six months, that would be an extra $1,200. A firm will pay StubHub up front for every transaction that goes on a payment plan the san francisco-based fintech company whose other partners include adidas casper sleep inc and peloton will keep the interest earned on these purchases so listen i'm a sports fan and i'll be watching the super bowl i watched both the playoffs my

titans were in the playoffs i watch all all that. I've been to Stanley Cup. I'll be going to the Masters this year. I don't mind going to a Super Bowl. All of that's fine. It's a luxury. Well, my team, your team isn't your team. You don't own it. You don't play on it.

You watch it from the stands and no one knows you're there. It's not your team you are a fan a spectator you are watching other people earn a living and that is perfectly fine to do as long as you have the money to do it if you are financing your super bowl tickets at 30 we might look up stupid in the dictionary and see your picture that's absolutely asinine it's ridiculous it's crazy you're a fool don't do it don't finance tickets for anything tickets that sell on StubHub are 100% entertainment. You cannot buy a ticket to get a kidney transplant.

There's nothing on there that is a necessity. It's all a luxury. It's all entertainment. And it's all fine to do if you pay cash and it doesn't affect your family. But by definition, if you're financing a ticket to a game where someone else is making a living and you're watching and you're doing that at 30%, that puts you in the stupid zone. That's a new seating section right there in the stadium. It's the stupid zone.

They're going to put all the people that are stupid in one end of the stadium so we know who you are. Oh, my God. This is unbelievable. But it happens all the time, doesn't it? It's really not that shocking. We're like, oh, yeah, there's another stupid thing. And don't you love the name of the company?

Affirm. Isn't that great? I'm going to affirm your stupidity. I'm going to put a 30% tattoo on your forehead. We are going to affirm your stupidity. Now, I got some San Francisco 49er fans on my team that are wetting their pants right now. I got some Kansas City Chief on my team fans that are wetting their pants right now. One of my top team members is a Kansas City guy, and he's going to the Super Bowl. But believe me, A, he can afford it, and you can be rest assured the boy did not finance the tickets. Otherwise, he'd come home to no job for being that stupid

because I try not to keep people on my payroll that are that dumb. No, he'll be enjoying himself, and I'm glad he's getting to go. It's a wonderful thing. He's been following the Chiefs for a long time, and it's been 50 years since they've been there. So it's a cool thing to get to go. It's a cool thing. But you know what? You can watch it on your television.

You can get some friends over. You can do a lot of different stuff, and if you can't afford it if your family is not in control and you don't have an extra seven thousand dollars plus travel cost each if you don't have that as extra money fly flying around that means you can't afford it by the way that means that about almost anything if you don't have the money to buy it you can't afford it by definition so this is just absurd and of course it's a it's going crazy this idea that stubhub would use the fintech company affirm to affirm your stupidity by loaning you money at 30 interest interest to buy a ticket to anything. It's just, it's such crazy stuff that, you know, it's gone crazy on the internet, of course, viral. And people keep sending me this over.

Do you believe this, Dave Ramsey? I wonder what Dave Ramsey's got to say about that. No, you didn't. You knew what Dave Ramsey would say about this. You're just trying to stir me up, and it worked. You know, it's the same thing, though. When you go down and buy a car and you put it on 30%, it's the same thing when you go down and buy a couch and you put it on 30%. Some people buy stuff and they don't even look at the paperwork.

Can you imagine that? They only find out later, or maybe never, what they paid in fees, what they paid in interest, what they really paid for that couch that was 0% interest until you didn't pay it off. And then they got you. This is the trick, people. The most lucrative sector of business in our entire economy are people that loan you money.

They're the most lucrative sector of any part of our economy. The lenders. The banks. The lenders. The affirms. The lenders. We can affirm that borrowing money from a firm is a bad idea i love the title of these little fintechs are so cute yeah and they're going to make a billion

dollars on it they're just cute aren't they people are going to borrow money to buy tickets to concerts and sporting events in the Super Bowl on StubHub. Wow. Wow. I'll be in business forever. This is the Dave Ramsey Show. you've heard me talk about id theft for years and how it's only a matter of time before you become a victim but i ran across some numbers that even surprised me and shows the real nightmare that people go through when they become a victim. Of the 16 million victims of identity theft last year, yes, 16 million, 26% of them had to borrow money from family or friends, 22% of them lost

even more money by taking time off work, and 900,000 victims took out payday loans. This stuff is a freaking nightmare. That's why the only plan I have for my family and my entire team is through Zander Insurance. Zander takes over all the work to solve these problems and more, along with the systems to reduce your risk and protect your money if your accounts get hacked. Visit Zander.com or call 800-356-4282. It's the smartest, most affordable way to protect yourself. Thank you for joining us, America. This is the Dave Ramsey Show.

Open phones at 888-825-5225. Jessica is in California. Hi, Jessica. Welcome to the show. How can I help? Hi, Dave. It's an honor to How can I help? Hi, Dave. It's an honor to speak with you. You too.

What's up? I'm calling because we are house poor, and I've been listening to you for a couple months now, and I just really want to make a good long-term plan to get out of this. Okay. What's your house payment? It's $2,800 a month, $2,780, and we take home about $5,400 a month right now. Okay. Yeah, you are. Is there a change in your income coming soon? A big change? Well, we just bought this house because you know the mortgage broker told us we could afford it and is there a big change in your income coming

soon if I get a job yes if you get a job what would that do to your income? It would add significantly, maybe about $1,000 to $2,000 a month more. Okay, which still doesn't get us there. $2,000 a month would not change this situation, would it? Well, it's hard to know because we're in California, and so rents is high as well as mortgages out here. Okay. Well, you're in an expensive part of California for sure, and California is some super expensive real estate, by and large,

agreed with that. But that doesn't mean you get a pass on math you still can't make it like you're sitting right now and adding a thousand or two thousand a month you still can't make it so you bought a house you can't afford right there's no question about that unless you have a situation where your household income is getting ready to double you bought a house house you can't afford. And I'm not hearing that yet in this conversation. And you can't just say, well, rents are expensive. That means you just can't live in the area you're in with the income you have. That's what it means. I mean, if rents are just as high and you cannot find anything that's around a fourth of your take-home pay uh that means that the expense of the area it's an area that is too expensive to live in for that income and that's not that's not

a shame but there's no there's no way you get to just decide to live somewhere you can't afford i mean you know if you if you make fifty thousand dollars a year you cannot live on the upper east side of manhattan You cannot afford it. Right, right. You can't afford it. It's too expensive. So my family, my husband and I, we have three kids, and we decided to move out here because the schools were good. Both our kids need to be in a good school.

They have some learning disabilities. And we left a cheap house and bought an expensive house. And we're just, you know, our heads are spinning a little bit. We started the debt snowball, and we're really trying to make an effort out of it. You can't breathe, though. Mathematically, you're smothered. You're smothered. Yeah, yeah.

I appreciate that you're wanting to take care of your kids. You may have to move to a different end of the country to where you can get schools in an affordable area. I don't know. I don't know, but I do know that you're not going to win sitting there. You're going to be bankrupt within five years if you stay right where you're at. You cannot exist with children, especially children with special needs, in a family where you're spending $2,800 and your

take-home pay is $5,000. You just can't do that. It's not going to work. It's going to catch up with you. Something's going to happen. Something's going to break. Something's going to blow up. And it's just a matter of time before this falls in on you. And so, you know, you're going to have to admit that you made a mistake. And you're going to have to reverse the mistake and sell the house and you're going to look for an area that can serve your purposes that you can afford to live in and take care of your children with needs and there are areas of the country that'll do that it may not be right there where you are right now it might involve a job change it might involve involve a major move, a location change, several states over. I don't know.

But you just can't do what you're doing. It won't work. I can't make it work for you, and I'm not going to tell you to try. So don't do it. Don't do it. Hope that helps. Thanks for the call. Jessica is, or I'm sorry, Robin is with us.

Robin's in Arizona. Hi, Robin. How are you? Hi, Dave. Thank you for all that you do for everyone. Thank you. I'm calling because my little sister, I love her, but she has an extreme amount of debt, and now she's separated from her husband, and they're trying to work on things,

and they're going to marriage therapy. But finances is one of the big things. Again, even the marriage counselor said, you guys need to go to FPU because they don't have their money together. She was working two jobs up until like a few months ago, and she was still spending, like spending. Now she's down to one job. She still makes really good money. She makes $70 70 000 a year but i'm a little concerned either she is her marriage is going to fall apart because of it or

she's going to be on her own and having to deal with all this debt and she's got everything from student loans to irs consolidation credit cards you name it she's got it so why has if a marriage counselor is looking at her her husband is looking at her and saying, you're spending like you're in Congress, you're running the car towards the wall, you're getting ready to hit the wall and blow up, you're going to run everything, lose everything. What is her answer when someone says that to her? I don't know that her husband, her husband actually I think may have been a contributor to some things because he has not wanted to join their money together well i don't blame him when she

well but when she does things he just says uh whatever you want to do yeah well so has everybody else so far but i mean they're sitting there and they're saying part of the problem with the marriage is financial stress and the marriage counselor is saying you are overspending and what does she say at this point she knows she needs to change so she has come to the point of and has you know really has as saying you know she's she says she's going to stop spending she says she's not going to use credit cards anymore um she says she's going to make a difference good but i as a as her sister how do i help her walk through this um and you you've been through financial peace university or something or what

i have i have been through financial peace university and i try to give her every little and during that time you changed what you were doing um actually i had pretty much been living very much that way anyway just going to financial peace university helped us my husband and i firm up some stuff like doing a trust and just being being more powerhouses like you know we're on baby step six we've got our house to pay off so well what i would do then is i would i would exaggerate if i were you and i would say you know what i've never struggled with spending like you have but i have struggled that's an exaggeration okay um and going to financial peace university and changing that has helped me because i now i used to not have any sense of peace and organization,

and now I've got much more peace and organization, and I just want that for you. That's not you wagging your finger at her saying, stop being stupid, sister. Instead saying, I used to be, I used to struggle with this, but I don't now, and this helped, and so I can understand how you feel and let me just tell you there's a light at the end of the tunnel it's not an oncoming train there's a better way of living i know i went through the same thing try to meet her where she is and then walk with her and say and i'll be your biggest cheerleader and i'll be your accountability partner if you guys will get on this together and change your marriage you know uh i think it'll keep their marriage together yeah i think it could it saves a lot

of marriages i don't know what else is going on but if the if the marriage counselor is recommending it that tells us it's a big point yeah i would say probably 85 of their problem is probably i think a lot of hers is immaturity which is manifesting itself as arrogance and self-centeredness. That's what I heard. She's not grown up yet. She's growing up now. I don't know how old she is. She thinks she deserves. That's it. There's an entitlement. That's an arrogance. Entitlement's always arrogance. That's what I heard.

So I'll give you a Financial Peace University to give to them as a gift from you. And I'll pay for it. You hold on. Kelly will pick up and we'll save their marriage together. Let's do it. This is the Dave Ramsey Show. I love talking about companies that know how to do business right. You've heard of Grip6 belts, right? Well, if you haven't, it's the only belt you can get online with no holes, no flap, and no bulk. I'm talking weightless, and the buckles come in really cool designs and are interchangeable i personally

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Check out this month's special offers for my listeners at grip6.com One of the benefits of having the commercial breaks here in the studio is I get to go outside the studio and meet folks that stop by here at Ramsey Solutions. We invite you to come by anytime you're in the area. We've got quite an area out here for you to visit and see and take pictures, and I get to meet folks. I get to meet folks when they're doing their debt-free screams with brand-new little babies that are three months old,

and I just met a couple getting married and coming up here in San Diego. They're standing out here right now. And, you know, when you have those major life events happening, you need to stop and re-look at a bunch of your insurance situations, a bunch of your financial situations. It's a time to update and make sure you're up to date on things. I know it's the last thing on your mind, but when your life changes like this, your insurance needs to change too,

and your coverages need to change. And making sure these updates happen doesn't have to be hard. You can work with an independent insurance agent like one of our endorsed local providers, our ELPs for insurance, and they'll save you hundreds, sometimes thousands of dollars on your car and homeowners as an example. So always think about updating and changing when things are changing. Go to DaveRamsey.com slash ELP and click on insurance. Just click on ELP for insurance at DaveRamsey.com. Ezra is with us in Michigan.

Hi, Ezra. How are you? Good. How are you, Dave? Better than I deserve. What's up? So me and my wife have been debt-free for a couple weeks now. We finished Baby Step 2 up.

We're planning on finishing up Baby Step 3 about the end of next month, so I should have our emergency fund. Great. And the thing is, yeah, thank you, is that we're both pretty young. I'm 21, she's 23, and we don't really want to buy a house. I know a lot of people do baby step 3B to save for a down payment. But we really just kind of want to rent for a long time, maybe up to 10 years and perhaps reevaluate. But by that point, we should be able to have enough saved to pay cash for either a small house or a condo. And so we're thinking of getting a little bit nicer of an apartment. It's nothing extravagant. It's still around 25% of our take-home pay. But I was just wondering, is it that bad of an idea to not want to buy for a long time,

even though technically I could get one sooner? Because we just kind of want to travel and don't really want the hassle of owning a house. It's not the end of the world as a lifetime decision it's not a good decision but you're very very young getting started you got plenty of time and you know you're talking about buying a home probably by the time you're 30 is what you're saying and that's fine i don't have any issue with. I don't want you going two decades without it because the house goes up in value, and as houses go up in value, rents go up in value. So during this 10 years that you're talking about not owning a home,

your rent's going to go up substantially because rents always increase as real estate values increase. And that's a never-ending thing. So you don't want to do that from now until 80 years old because the increases in the rent will limit, hamper mathematically your ability to build wealth. But on the short term, it's not the end of the world. And there's no, you know, people jump up and down. They get the fever and they are all upset because you've been married for 20 minutes

and haven't bought a house. I'm not one of those. I'm with you. I'm okay if you take it easy. Take some time. Save some money. Travel. Don't want to own a house right now.

Don't want to cut grass right now. Don't want to deal with that, right? I'm okay with that. But I don't think I would go much past 30 in your situation because you're going to be able to afford uh like you said to pay cash for something by then does that make sense to you yeah that makes sense yeah so it's not the end of the world but i think your your 10-year number is the that's the edge i wouldn't go past that just because past, it's starting to hamper your ability to build wealth because as rents rise, see when you buy a house, your rent doesn't go up anymore.

That's it. And the value of the house is going up from then on. So you've locked in one of your biggest expense items in your budget and it doesn't increase anymore. And that's really wonderful. So with that in mind, you may even want to do an interim step and get you a little condo where you don't have to worry about it, much like you don't have to worry about an apartment. And you could do that in a few years. But if you rent for a few years or even don't buy for 10 years and save up and pay cash for a house before you're 30, I'm on your team. Let's do that. Thanks for the call.

Tom's with us. Tom's in Florida. Hey, Tom, how are you? Pretty good, Dave. How are you doing? Better than I deserve. How can I help? So my dad and I, my childhood home where I grew up, my dad's selling it.

He's selling it now, it looks like, for $163,000, roughly between line of credit, home equity line of credit and principal, oh, about $60,000. After everything, he's going to walk away with about $80,000. The reason we're selling it is because it's a duplex. It's an income property, but he's in Florida with me and his grandkids and stuff, and it's sitting empty, and it's kind of rotting away. So good opportunity to sell it. And his income is, you know, only about $2,500 a month he gets from, like, Social Security. So this is really it. The money he has to his name is in this house, and he's 65 years old down here.

And I'm nervous, Dave, honestly't i don't know what to do with this money and i know he doesn't know what to do with it and the last thing i want is this money just sitting in his checking account and he comes up with some sort of hobby and it's gone yep so which has been which has been his track record, apparently. Oh, yeah. Yes. Guns, knives, cars. Okay. Yeah.

Yeah. So he needs to set aside a portion of it, not in his checking account, in a money market account that's a little bit difficult to get to for emergencies, and the rest of it he needs to invest. And so I would sit him down with a SmartVestor Pro in your area and set up that money market account for some of the money for his emergency fund, three to six months of expenses, which isn't much. So we might put like, I don't know, $5,000, $10,000 in that account. And that's just sitting there just for something like the car transmission goes out

or something like that, or he gets sick or something like that the rest of the money i would invest in mutual funds and uh make sure he understands it but make sure he just says we're not going to touch it we're going to live on the 2500 and that we're going to pretend like that money's not even over there and let it grow a little the good news is if it's invested well in six or seven years, it'll probably double. And if he can keep his hands off of it, so if he gets 80 grand, you said he's going to get 80 grand out, right? Yeah, about 80 grand, yep. Okay, so if we put 75 in there, he'd have 150 in six or seven years if he leaves his hands off of it. So that's a good plan, and that'll help him have a little bit of a nest egg.

It's not a great one, but that's heading in the right direction. Why is he not working? So he got sick about 15 years ago with an immune disease, and he almost died. And he's 65 now, but he's only allowed to – he's an auto mechanic by trade. Does his health never recover? Not – I mean, it has. He's perfectly capable. Well, no, that's a lie.

He's not perfectly capable, but he could get like a small part-time job, something, but he's only allowed to make he could get like a small part-time job something but he's only allowed to make you know pennies on the dollar at this point i think he can only make about 900 a month no he can make more but it just he can make more but it just makes his social security be affected right and that's you know i mean that's he's not really healthy enough to really mess with that i told him to go up to auto zoneone and get a job working 20 hours a week just to make that extra $900 a month. Yeah, that'd be nice.

That'd be nice. At a part, yeah. Yeah, and he knows the business, and he'd be knowledgeable there instantly. Yeah, plus it'd give him something to do. And he needs the money. I mean, an extra $1,000 a month would be nice. It'd be real nice in this situation, and that'll help him keep his hands off the the money. I mean, an extra $1,000 a month would be nice, be real nice in this situation, and that'll help him keep his hands off the other money.

So, yeah, let's get him a job and set him up an investment account with a SmartVestor Pro and set him up an emergency fund with this money. Oh, by the way, he needs to be on a budget so that he lives on the money that's coming in. Get him on every dollar, and you can walk him through this. I can tell by talking to you. Thanks for being there for him.

This is the Dave Ramsey Show. One of my favorite parts of this show is hearing your debt-free screams. You guys are our heroes. You've kicked debt to the curb and you've saved for the future. Now we want to celebrate with you. If you have lived like no one else and are currently in baby steps four through seven, well, it's time to enjoy some money. And the perfect place to do that is on board our first ever live like no one else cruise in March.

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Head over to Ramsey Show. Thank you for joining us, America. This is the Dave Ramsey Show. Open phones at 888-825-5225. Pam is in Texas. Hey, Pam, welcome to the show. How can I help? Hey, Dave, thank you so much for taking my call today. Sure, what's up?

Okay, so I just started listening, right? And I actually do have, I already have a $1,000 space. That's just something that I've always kind of had. But now I'm just like at this point where I want to buy a house. I'm 32. And I don't want to buy a house and generate more debt when I'm already in debt. So I'm trying to, like, put myself in this really uncomfortable mind space to pay off all my debt. Good! Like put myself in this really uncomfortable mind space to pay off all my debt. And I'm like the classic American story with every bad thing you could think

of in regards to finances where I have a good credit score. But like you said, that just means you can borrow a lot of money and get into a lot of debt. But like I have this lease that I'm trying to get out of on a car, which I probably just ended up having to pay through that. And then my student loans, I think in total of everything, it's about a hundred thousand dollars.

Roughly. I make like about 60 grand a year, 65 in a good year. And I, what my main question is today is like with, um, if I have like 17,000 in my credit card debt, is it,

would you recommend doing like a small personal loan with a lower interest and then just pay that off just to save the money and interest? It's okay, but it's not really the answer. The answer is the first part of the conversation when you said, I have figured out I have got to do this. So let me tell you let's let's say you saved 10 on 17 000 on the interest by by refinancing and getting a cheaper interest rate that'd be seven seventeen hundred and fifty dollars that's not bad i like seventeen hundred

and fifty dollars if you give it to me i'll'll take it, right? But $1,750 does not solve your $100,000 problem. Right. What solves your $100,000 problem is PAM. PAM is the secret sauce in this equation. You are the answer to the problem. Living on nothing, living on a tight budget, concentrating, focusing, working an extra job or a side hustle, taking extra hours, selling stuff, and bending in on this hard.

And it's going to take you three hard years to clean this mess up. But it's taken you 10 years to make this mess. Yes, yes. You usually can clean it up faster than you made it but it does take some time it's not instant you have a really my hardest thing is budgeting like it's hard to budget like with it with your rotating expenses and then trying to pay for stuff i've done it all dave i've used the credit cards to pay bills and i kind of winged myself off of that like good i've done it all dave i've used the credit cards to pay bills and i kind of winged myself off of that like good i've done it all good but well you need a new way don't you you're ready you're ready for

a new way aren't you yes sir all right that's why you've met that's why you met me i'm here to help have you heard about our class financial peace university and our one-year membership to that i've heard about it i haven't, signed up for it or anything. Okay. Do you want to take it? Yes, sir. All right. I'll give it to you if you want to take it.

Oh, yes, sir. I absolutely will take it. Okay. My only requirement is that you go to every class, that you go change your life. Yes, I will. Actually, most of my debt is student loans, and it's crazy because I didn't even get a degree, but now my job is paying for my degree.

Well, keep working on that. Keep working extra, and just let's tear into this. How old are you? 32. So when you're 35, we're going to scream, I'm debt-free. Yes, sir. I'll call back as long as you've got a space for me to scream, I'm debt-free. Yes, sir. I'll call back as long as you've got a space for me. We'll make a place for you.

You're the hero. Now go win. Do this story. Make it a good story. Because it's not working. What you've been doing hasn't been working. It's time to change. Hold on.

Kelly will pick up, and we'll get you signed up for the class and the one-year membership, and we'll get this moving for you. We appreciate you being here. Open phones at 888-825-5225. Susanna is with us in Washington. Hi, Susanna. How are you? Hi, Dave.

Thanks for taking my call. Sure. What's up? So I discovered you yesterday, and I'm very glad I did. I listened to you all day, and I went home and made a plan. I'm 42. I have two kids, 18 and 14. And I, you know, I make about 160 a year.

Wow. But I have $140,000 in student loans and a car. So I know that if I put my mind to it, I can do it. I actually did some math yesterday, and I know that I can do it. The only thing is that I have an 18-year-old that's going to start college this year, and I don't have enough saved up for her. So I wanted to know if instead of paying off everything and cutting everything up, you know, for a two-year or three-year goal, I extended it to five years, and I wanted to know what you thought about that.

It's okay. I'm not sure it's your total picture. You make a lot of money, and you've done really good on the income side. Congratulations. What do you do for a living on the income side. Congratulations. What do you do for a living? I'm a pharmacist. Ah, very good.

Okay. Yeah, of course. Okay. So I'm going to send you a book called Debt-Free Degree by Anthony O'Neill. It's a number one bestseller. He's one of our Ramsey personalities. And the book is all about how your kid can to go to college without taking on any debt. One of the things is for mom to help, and we want you to help. But kiddo has a lot of work to do. Kiddo is going to choose a school that is very affordable.

Kiddo is going to apply for a thousand scholarships and get turned down for most of them. But if they get 20 or 30 of them at a thousand dollars a piece that'd be a big deal wouldn't it no their new job starting today is applying for scholarships their new job is they're going to a school not that they like how pretty the campus is but that is affordable because mama is broke and so is kiddo so broke people don't go to expensive schools agreed right yes we already have that plan to go to community college good and kiddo's going to be working a little bit kiddo's going to be working and paying for stuff and getting scholarships and you're going to community college that's all that's a wonderful plan right there for the first two years in the midst of that you should not have to contribute much okay if they're if they're working and they're getting

scholarships and they chose an affordable school and you know they can do a lot to get themselves through school so i'll send you the book that maps that out, and you guys lay it out and figure it out together. And then, yeah, you lay your budget out and say, okay, I can put X number of dollars a month towards your college, and the rest of it we're going to attack this debt with, and the rest of it we're going to live on nothing. Beans and rice, rice and beans. I have some money in my 401K, i've invested in since 18 years ago and i was wondering

i know that you say not to touch it correct um and you also say to stop investing in 401k while you're paying your debt wow you got a lot in one day it scares me yes i got a lot i when i put my mind to something i i i went to school with three kids, and I did it. And I just, you know, I want what's best for them and for our future, so I just want to be smart about it before it's too late, you know. Stop adding to your 401K and attack your debt. You want me to stop my 401K? Absolutely.

You've got a huge amount of debt. You've got to clean it up. You are not going to prosper with this around your neck. It's been around your neck for a long time, hasn't it? It hasn't. I graduated three years ago. Okay. But I mean, how long does it take to get tired of $140,000 in debt? I'm already tired of it. 20 seconds. 20 seconds later, I'm tired of that. So yeah, you need to live on nothing and clean this mess up very, very quickly, and then you have the rest of your life to build wealth and pay college tuitions and build wealth and enjoy your life.

But right now, all your stinking money is going to student loans. The great news is you've got a big shovel. The bad news is you're in a pretty good-sized hole, and you're going to have to get with it here, kiddo. Hold on. Kelly will pick up, and we'll get you a debt-free The bad news is you're in a pretty good size hole and you're going to have to get with it here, kiddo. Hold on. Kelly will pick up and we'll get you a debt-free degree sent out to you so your kiddo can go to school without going into debt and without draining mom's

pocketbook in the process. That puts this hour of the Dave Ramsey show in the books. This is James Childs, producer of The Dave Ramsey Show. Did you know you can now listen to The Dave Ramsey Show on Pandora and Spotify? For all the ways to watch and listen, check out our show page at DaveRamsey.com slash show.