The Ramsey Show - App - How Can I Best Grow My Money? (Hour 3)

Episode Date: January 6, 2023

George Kamel & Jade Warshaw answer your questions and discuss: "Is car sharing on Turo a good side hustle?" What to do when your goals don't align with your financial planner, Investing vs. saving for a future house, What to do with unused 529 money. Have a question for the show? Call 888-825-5225 Weekdays from 2-5pm ET 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 Learn more about your ad choices. https://www.megaphone.fm/adchoices Ramsey Solutions Privacy Policy

🎵 Live from the headquarters of Ramsey Solutions, broadcasting from the Pods Moving and Storage Studio, it's The Ramsey Show, where America hangs out to have a conversation about your life and your money. I'm Ramsey personality, George Campbell, joined this hour by my good friend, Jade Warshaw. And we are taking your calls, America, at the number 888-825-5225. That's 888-825-5225.

William kicks us off in Wisconsin. William, welcome to The Ramsey Show. How are you doing? Good, good. How are you guys doing? Doing great. What's going on? So I'm 20 years old and I recently bought my first two cars to rent out on this app called Turo. How do you guys feel

about someone investing into this business model as a way to generate more income? It depends on how you're investing. Are you paying cash? So for the first two cars, I have paid cash. And then my plan is just to save whatever the cars make and then slowly buy more. And my question about this is, is obviously the cars depreciate. And if I kept buying more, it would probably be over like 50% of your income. How do you guys feel about that? So you have a primary car that you're driving, and that's not being rented out? Yeah, that's separate from the other two. What was the cost of the other two cars that you bought for this?

So one of them is $11,000, and then the other one's a little bit more expensive. I think it comes in around $25,000. And you paid cash for these? Wow. At $20,000? Yeah, I have a different business that I've tried to save as much as possible. What's the other business? Because this sounds like you should just go all in on that one.

So that's actually like, I've been doing like YouTube videos for like four, four and a half years now. And it's just like vlogs about like different things that I do. So I've also been filming content about the cars as well. Okay. Good for you. Yeah, very good. Well, I mean, here's the way I look at it. If you could watch this money burn and your life is going to be okay, and you just want to do this as a fun side hustle,

knowing it may not ROI quickly or at all, then I say go for it. The way you've done it so far is not stupid. Now, if you were taking out loans for these cars as they depreciated and you're hoping to make back that $36,000 initial investment, you're not going to see that for a long time. Okay. But the way you've done it, have you done this previously? It sounds like you have experience with Turo. Yeah, so with the two cars I have, it's going well.

Obviously, it's hard to know how well it's going because it's hard to account for the depreciation of the car since they're probably getting 30,000 miles per year for each car. So they're obviously going to depreciate pretty quickly. I feel like there's formulas and algorithms to figure that out, what that rate is going to be. I feel like you can research that and find out. I know it's out there. I'm not into that world heavily, but I believe that there's research where you can find out what that value is. And that way you're finding out if the prices that you're setting are offsetting that enough to where you're really creating the profit that you need to make money

long-term. So that's the equation that you're solving for for sure for sure and on top of like investing in these cars would you guys think that that should be more of a side thing because like for for the most part i've been saving money and then as much as i can put into the cars i've been i've been doing that pretty much exclusively it just feels like a lot of work. And I don't know. I mean, I know they take a huge commission. It can be up to 40%, right? So they have a few different plans because it also comes with insurance. The plan I'm on is they actually only take 10%. Because you're providing the insurance. Yeah, I have to buy like separate insurance for each car.

So you got to factor that in on top of the depreciation. You're paying a whole lot more for insurance. It sounds like, here's what I'm getting. It sounds like you're kind of winging it right now. And it feels like you need to settle down and really, like George is saying, get all your numbers, get all the information and really put this into a business plan to see what percentage of money you're actually making in this and how much of your time you're putting into it yeah you could put that same time into your youtube channel and you could get 5x what you're making on turo i'm just gonna go all in on the youtube channel i know that's right because that's a it's a lot of work turo is not exactly you know passive income

i know my guy just dropped 36 000 on on cash cars just like lickety split so i feel like i feel like youtube's been good to you dude yeah so yeah that's definitely something to consider because i know you guys have also talked about like airbnbs and stuff and it's like i look at like the cash flow on that compared to like doing like long-term rentals because that's also something i've looked into and it's like you can make so much more return on your investment doing like the short-term rentals well long-term term, I think real estate is a better investment because that property is going to appreciate it. That's right. And so I think you're doing great for your age. I'm not worried about you. You're a great entrepreneur, but I would track every single

number. And at the end of the next six months go, was this worth it? Should I continue doing this? Or is there something that's worth my time? time yeah i worry about that george having so much money tied up in assets that are going down in value that's i mean as he might we don't know what the people are going to do to that car obviously he's got extra insurance but the wear and tear on that thing it just feels like a lot of hands-on work yeah there's a lot of risk a lot of unknown in that yeah you know so more power to you i mean i haven't done it Yeah, there's a lot of risk, a lot of unknown in that. Yeah. So more power to you, William. I mean, I haven't done it myself, but it's a cool business model for sure, especially with the rental car market as it is. True that, true that. All right, let's go to Benjamin in

Atlanta. Benjamin, what's up? Hey guys, thanks for taking my call. Sure. What's going on? Yeah, so my question is, I'm on Baby Step Six. I'm a big follower of the Bay-Lansey philosophy. And yesterday I had a conversation with my financial planner, and she insisted that basically it was kind of silly for me not to put 24% of my income, 23%, somewhere around there. Hey, Benjamin, could you talk directly into your phone? We're having a hard time hearing you. Yes, can you hear me? That's better. All right, so your financial planner wants you to invest 23% of your income. Roughly, yeah, about there. I'm

getting 16% right now on my 401k. And because I have a low interest rate on my home loan, just pay basically the min payments and just build up my 401k. And I was trying to explain to her, you know, my goal is to get my house paid off in maybe another 10 to 12 years, somewhere around there. And she understands some value in it, but she certainly thinks the better path is to put the more money in the 401k because she could generate more profit from, you know, what money I put in there that she could manage. And I just wanted to have some ammunition to take back.

I mean, overall, I like the service, and I just want to know what you guys think about it specifically. Well, it's like asking a dentist if you need a cavity. I mean, she's benefiting from this as well. Of course. If you're putting money with her instead of your mortgage, she's benefiting. And you guys have different goals. And so if I'm working with a coach and we don't align with our goals, I'm going to find a new coach. Hit the road, Jack.

Don't you come back. See, I'm not going to jump in because Jade's a better singer, but that's exactly how I feel. I would just say, hey, it's been great working with you. I appreciate your time. I got to go work with someone who perfectly aligns with what I'm after. She's not accounting appreciate your time. I got to go work with someone who perfectly aligns with what I'm after. She's not accounting for your freedom. And that's why, Benjamin, go connect with a SmartVestor Pro at RamseySolutions.com. They're going to follow the Ramsey way, which is clearly what you're wanting to do.

And guess what? You're going to be a multimillionaire if you follow this plan. Yep. Right now, your A1 is to, yes, you're investing 15%, but also get rid of that mortgage payment because guess what you can do without a mortgage payment? Invest way more than even 23%. Okay, I need me a paid-off house. That's what I'm getting to.

So I'm assuming they're not a SmartVestor Pro because they're not doing things the Ramsey way. So jump onto our website, get connected with one, and tell them to hit the road, Jack, or whatever her name is. That'd be cool if it was Jack. Probably not, though. Jacqueline.

More of The Ramsey Show coming up. 888-825-5225. this is the ramsey show now most of you you're saying good riddance to last year because it was hard enough just to keep gas in the tank, food in the fridge, and money's still tight a few days later. And you're wondering, is 2023 going to be any different? Well, good news. You don't have to live through another year of stress and worry. And that's why I want you to tune in to Building Wealth in 2023, our free livestream event on January 12th. We want to show you that you can still make progress on your goals. You can build wealth. You can have peace with money, even in this crazy

economy. Now, during this event, you're going to hear from Dave Ramsey, Rachel Cruz, myself, Dr. John Deloney, and Ken Coleman. We're going to talk about how to set goals and how to create margin so that you can build wealth this year. And we're going to have a lot of fun too. You're going to leave fired up for 2023. And do I need to remind you, it's completely free. If the economy feels out of control, you don't have to. So to register for this free live stream, go to ramseysolutions.com slash wealth to sign up. That's ramseysolutions.com slash wealth.

Love it. Let's do this thing. All right, Jade, we got our question of the day, and it comes from Nick in Wisconsin. What does Nick have to say? He says, I'm 22 years old, and I make 81K a year before taxes as a mechanical engineer. I have 50K in my Roth IRA and 13K in my 401K.

Very good. I have no debt, a fully funded emergency fund, and I'm currently investing 15% of my earnings into the 401K. I'm wondering what your next financial step should be. Save up for a down payment on a house or continue to invest while the market is low. I'm concerned I might be putting too much money away in accounts that I can't touch until I'm 60. Love the show and I would hope to hear back from you soon. Well, Nick, great job. What a rock star.

Yeah, man, you're killing the game. I'm really proud of you. You're doing just what you should be doing. No debt. Excellent. You know, he didn't say much about his. Oh, he did say he has a fully funded emergency. OK, excellent. He's a baby step four.

He's baby step four. And wanting a house. Yeah, he's doing a great job. I love this. So if I'm you, you could kind of work this one or two ways. I think that you can just go ahead and start doing both. I think you can keep doing your 15%. I'm assuming there's some margin there and start saving for a house. Now, for some reason, there's not any margin to do both. You could pause investing and go backwards to what we would call baby step 3B,

save for your down payment. Once you've got that done and you got the house then go back to the investing but really what stood out to me right here was the final sentence when he said i might be putting too much away from money uh money and accounts that i can't touch until i'm 60 no that's not true when it comes to investing for retirement time is your friend and it's so great that you're able to start investing early that you've actually got your life together. You know, the rest of us out here, we rarely get those calls. They're like, Dave, I'm upset because I put too much money away in retirement. Man, I wish I could go back. You're so young. Nick's crushing it. Again, you can do one of two things. You could slow down

investing. I don't think you need to. You make 81K a year. I would set a goal for yourself and go, all right, in my area in Wisconsin, I'm going to get this kind of house. I'm going to do the 15 year. I need it to be a quarter of my take-home pay. All right. 60 grand is my goal in two years. That's 30 grand a year. That's this much a month. And you be about that business. And all of a sudden you've been investing 15% and you're a homeowner. That's right. Way to go. I love it. Thanks for the question, Nick. Appreciate it.

Let's go to the phones. The number to call is 888-825-5225. Kane is waiting in Ohio. Kane, welcome to the show. Hi, guys. How are you doing? Good. You're doing great. How can we help?

All right. So I'm 18 years old. I'm a senior in high school. I've been working consistently since I was 14. And recently I started my job that I'm hoping to keep for a long term. And I wanted to buy a house after I graduate or move to an apartment. I was wondering what you guys thought was the smartest decision, either a house or an apartment. Cool. So you're 18. What are you making right now with this job?

To estimate, I haven't been here for a year yet, so I'm just going to estimate it's probably in the order between 35 and 45K a year. What are you doing? I'm a mechanic. Wow. And you're in school as well? Are you going to need any further education or training? No. I go to a career center, and the job I'm at now, right now I'm in the quick service department, but they've offered me a higher position right after I graduate. So I should be making more

money right after I graduate, but I can't say how much. Way to go, man. That's really good. And no debt? No debt. Excellent. Trying to stay out of it. How much money do you have in the bank? I'm currently just shy of $9,000. My guy. Good job. You're doing so great. All right. So if you're talking about where to go next, again, I don't think you need to go buy a home tomorrow, but if you want to go rent an apartment for a while, I think it's going to give you some dignity and make you feel like a real adult. And truthfully, you're so far ahead of most adults that you're very mature for your age. I would go rent somewhere. And if you want to get a roommate to kind of have a buddy and split the expenses and have more money to save up for that future down payment on a home, you can do that. I like it. Right. All right.

All right, cool. And then I do have another question if that's okay. Sure. So I've been listening to the podcast for a while and it seems like a lot of the people who call make a lot more money than I'm expecting to make. So there is a concern that maybe I'll be struggling in the future financially

because all these other people are struggling and I don't want them. Who's the other people? The other people have debt. The people that you're talking about struggling, half the people, the majority of the folks that are calling in are calling in because they're drowning in debt. And you're not right now. And I hope that you never are. If you make the choice to stay out of debt, live on less than you make, you got 9K saved. at this point, you're doing everything right. You just need to continue that path forward. And yes, your income, you know, it's fine to aspire to more income.

You're young. You've got plenty of time. You know, you're doing this at this point in your life. Who knows down the line, you might decide you want to get into something else, you know, but your income is going to come is going to go up. You're 18 years old right now. And as a mechanic, I mean, there's so much upward trajectory for you in that field. Who knows, maybe you'll own your own shop one day. And so don't discount that. But also realize you could live off if you continue this way, you could live off of 40 and still have a great life.

Rachel Cruz and I, we just released a new episode of Smart Money Happy Hour, and it's all about the magic salary. Does it exist? What is it for happiness and success? And the takeaway, I'll spoil it. There is really no magic number because we get calls from people who make 250 grand who are broke and miserable. Oh yeah. It's not about the amount. It's about how you're managing it. And we get calls from people who make $35,000 and paid off 16,000 in debt and they live a great life and they're very happy and they're accomplishing their goals. So Cain, you're going to get there for sure. You're already well on your way and I will be shocked if your income doesn't continue to go up year after year and you're making, you know, $85,000, $90,000 one day as a mechanic. Yeah, he's got the right idea. I like the way his mind works.

I like that he's thinking towards the future. I like that he's really weighing his options. I love that he stayed out of debt. He's got money saved. And, you know, to your point, George, it kind of goes back to what you're talking about on Smart Money Happy Hour. It is not about the amount of income and it's about how you're managing it. If you're staying out of debt, look, we saw the Bloomberg report that came out and the majority of people that make $250,000 and more, those are the people who are living paycheck to paycheck. It's unbelievable. So more income does not equal greater wealth, right? We know that. Well, and a lot of times when you have that kind of income, you feel like, well, I need to have a certain level of status and lifestyle.

And so it's called lifestyle creep. Yes. It creeps up. The more money you make, the more money you spend. And part of it is keeping that in check. And if you can make that kind of money while still living with low expenses. Killing the game. And you have margin, then you have peace and you got joy

and you have options and you have freedom. And that's what this whole plan is about. It's not about getting out of debt so we can get out of debt. Right. It's doing it so that we have those kinds of options. I know that's right. Yeah, that lifestyle creep, that's a killer, man. That'll get you because you start thinking you deserve it.

I deserve this. Well, that's why in our millionaire study, we studied 10,000 of them. The top three, engineer, accountant, teacher. Yep. Those are not flashy people who are trying to impress you in their nice cars. Teachers are just trying to get through the day. Okay. They're not driving into the school parking lot in their Mercedes going, look at me, kids. Look how cool I am. Yeah. Yeah. And so if you continue to live on less than you make, live on a budget, stay out of debt, invest for the future, the salary becomes less and less relevant. Amen to that. Let's go. More of your calls coming up. 888-825-5225. This is The Ramsey Show. Thank you. we are back on the ramsey show i'm george camel co-host of smart money happy hour host of the

fine print entree leadership podcast joined by my co-host, Jade Warshaw, this hour. And we are taking your calls about life and money at 888-825-5225. Well, if you are looking for some healthy hacks to start the new year, we've got 21 tips for you in this weekend's edition of the Ramsey Newsletter. Whether you're still on track or about to hop on, do not let your budget be the bad guy to eating better. We've got lots of tips to eating well and staying within that food budget. For example, here's some. Try having a snack before you go to the store, aka don't shop on the empty stomach. Been there. And maybe even swap grocery stores, which can be a very emotional decision for a lot of people. They don't want to let go of Whole Foods. No. And so if you want these 21 tips,

it's completely free. Just sign up for the newsletter at ramsaysolutions.com slash newsletter. You'll get subscribed to our Sunday newsletter and we'll help you keep working towards those New Year's goals. And Jade, I know you are big on food plus on a budget. George, we all know food is the biggest grocery. It's the biggest budget buster and it's the easiest area to justify spending oh yeah and i mean and there's so many ways that they get you right you're going down the aisles i know for me it's when i see a new product like if it's kind of like in the realm of like i i love dried fruits so like when they come out with a new vert like i love dried pineapple do they have new fruits

i've never heard of well like they'll put it out in a different way like then they came out one with one that had like like chili seasoning on it and i was like oh i gotta try that one no i i don't want to say this george i'm a whole food shopper guys this is mind-blowing because jade is the most like i'm gonna do this on a budget and be frugal and there she is i got it on lock i'm telling you i know how to do it i have it on lock if you haven't visited my social media you should pop over there because i've got like food tips how to shop on a budget like i know you do too we we we got this on lock george the people need to come see this but i mean for me i always say i i can shop at whole foods because i'm i'm meatless i don't i don't buy the most expensive item in the store you just lost half of america they're like jade without meat

what is life look do i look like i'm at a lack of protein man cannot live on bread alone your girl your girl's got enough that's the tagline for slim jims i think at this point no that's i'm just kidding to a Slim Jim it's in the bible what are we talking about here's my thing with with food Jade I will like do the math on like the per serving oh because some things you're like oh that's like eight bucks a meal but if we get this one it's three bucks yeah well I mean we were just talking about this before the break I feel like the biggest uh the ones that get you the worst on that is like the pre-packaged items right like if you buy the oatmeal and it's like pre-second sectioned off in the little packet you're paying so much getting ripped off per ounce just buy the

big old thing of quaker oats in my case get the organic one please and put your own brown sugar in there it's going to be cheaper it's going to be healthier and you're going to get more per percent. Jade, my viral post that on reels and TikTok and all that was about how a meal at home is four bucks, average meal out is 13 and it's cheaper to eat at home. And I got hammered in the comments and here was the number one comment. Oh, is my time not worth anything? All that time cooking and doing the dishes i'm i'm worth too much per hour to be doing all of those menial tasks when someone else could do it for me do y'all want this money or not clearly not they're like that's the only question i'm making 20 bucks an hour so my time is worth more than me sitting at home cooking and cleaning i mean here's the thing there's a time to

go to a restaurant sure when you're not broke when you're not broke budget for it go to a restaurant but if you're out here in baby step two if you are broke if you've got tons of debt hanging around your neck cook at home trust me when sam and i were getting out of debt i learned and this was a big motivator for me because we weren't eating in a lot of restaurants i learned to cook at home and i learned to make bomb food because I was not about to be putting all of my money to Sally Mae depressed about that. No way was I going to sit down and eat just a terrible meal of ramen noodles. I was going to learn how to make beans and rice and lentils and tofu and all this stuff tastes delicious. And my husband is sitting out there behind the glass and he's shaking his head because he knows mama can cook.

We made sure that we were eating right. And you can, too. That's people go well jade i'm a terrible cook so i'm just gonna eat out every day you can learn i believe you can learn i believe that god created seasonings for the people preach okay you get you some garlic powder for sure salt and i want to see this this is the sign right here george if you can't see the flex of seasoning in the food it's not enough it's not seasoned bro it is not that's your life if you put me an egg if you fry an egg george and you put it in front of me and it's just a white and a yolk and i don't see any flex of seasoning no thanks tom hanks no thanks i love it well lots of tips there. RamseySolutions.com slash newsletter for 21 more.

Shred your own cheese. That was my last one. All right. Kaylee got to hear that for free. She's waiting on the line in Indianapolis. Kaylee, how are you? I'm good. How are you guys?

Doing great. How can we help today? I want to start by saying, George, Smart Money Happy Hour is my absolute fave. I listened to it yesterday. Well, thank you. I will relay the message to our friend Rachel as well. It's so good. Thank you.

Okay, so I have been a longtime listener. I recently had some stuff happen that I was like, oh my gosh, I have to get my life together. I need to get my money figured out. So I read the Total Money Makeover, been listening to the podcast, everything I can get my money figured out. So I read the total money makeover, been listening to the podcast, everything I can get my hands on. I'm trying to figure out how you stay super motivated, but also don't get crushed with the weight of, oh my gosh, I am in a terrible situation because I'm in between the two right now. Wow. Well, tell us about your situation. How much debt do you have and what's your income? I have about $12,000 and a couple credit cards and a personal loan,

and then I've got $60,000 in student loans. My income is only $30,000 a year, which I know the first thing you guys are going to say is get your income up. I am actively working on that. It's in the process of going up, but right now that's where I'm at. Okay. I'm trying to figure out, you know, looking for stuff to sell. I've been cutting subscription or yeah, subscriptions trying to figure out how to not have to sell my kids or my kidney on the black market.

How many kids do you have? I have two and I got financial peace junior for my nine year old for Christmas. And we've been doing that together because I'm like, I don't want her to have to go through everything I've gone through with all these dumb decisions. I want her to be smart before. That's a great why.

Are you a single mom? Yeah. I have a boyfriend that I live with. He's not as on board with it as I am, but we don't have combined finances. So I was just like, whatever. All right. This is Kaylee's journey.

For me and my girls. All right. I love this. Kaylee, number one, I want to encourage you right now, because you said something and the minute you said it, my heart started bursting for you because you were like, man, you were listing out your debt and you said, then the worst thing is I, my income is only 30K. Can I tell you? I just got to tell you this because I hope that it gives you hope. When I started my debt-free journey with my husband, our income was 30K.

But we had 460,000, okay? So this is what I want you to come away with this. It's been done and it can be done and your income is not going to stay at 30K, dear. You're going to work hard. You're going to move. What is your job at this time? I'm a customer service representative, but I did just get my bachelor's in November. So I'm working with a career counselor at my former college to get a job. I'm in the process of getting like a work from home freelance editing job to supplement my income.

So I'm working on upping my income, but... What was your degree in? Business and professional studies. Cool. Okay. So income, you're working on the income. Do we have... So let's talk about the baby steps, right, George?

Let's just make sure you understand the plan because you've read the total money makeover do you have baby step one in place currently i do not that's what i'm working on okay how close are you i i literally just like a week ago decided i need to get my life together that's all right that's all right so we're we're are you the job you're doing right now customer service is there any time to get a second like some second income coming in because like you said you're just looking for ways to get this money right yes and that's why um i'm getting ready to start the like the freelancing editing job great let's get that dollars an hour great let's get a second side hustle going let's get a third side hustle going. Let's get a third side

hustle going. You're working 80 hours a week. Hey, put that boyfriend to work because I know he's not sitting up in that apartment freeloading. He better be paying. Okay. I do not want you floating anybody else. You got two kids. You're a single mom. I want you to get baby step one. You're going to be able to do baby step two, 30 K. That is not where you're stopping. You're going to get this debt paid off. I know you can do it. We're going to send able to do baby step two. $30K, that is not where you're stopping. You're going to get this debt paid off. I know you can do it. Kayla, hang on the line. We're going to send you Financial Peace University for one year to walk alongside you. Our scripture of the day comes from 1 Thessalonians 5, 16-18.

Rejoice always, pray continually, give thanks in all circumstances, for this is God's will for you in Christ Jesus. Cicero said, a thankful heart is not only the greatest virtue, but the parent of all the other virtues. That's good. I like it. Good stuff there. Open phones at 888-825-5225.

I'm George Campbell, joined by Jade Warshaw this hour. Abby is in Rochester, Minnesota. Abby, welcome to the show. Hi, I'm so excited. We're excited to talk to you. What's going on? Alrighty. So me and my boyfriend, you know, we work for a large wholesale company currently.

The past few months have been rough, draining, working like 55, 60 hours a week. There's no time for personal life, family time, really taking a toll. But we recently gotten some hot water just because we didn't disclose this relationship as soon as they would have liked. So just kind of financially and just for the sake of our relationship, I'm just kind of in a point where I don't know if it would be smart for me to just kind of walk away from that job and try to find something else that's going to just make us a whole lot happier. Do you like the job? I mean, aside from the dating thing

were you happy if you weren't dating this guy would you leave anyways um so it's always been kind of a question like oh we could like i could leave it it's it's definitely been a lot more draining the past few months so it's just a job a lot of joy are you getting overtime for these extra hours uh no i'm salary yeah i'd find something where they value your time and you go i'm working my 40 hours and that's what i'm paid for is he doing the same is he also working 60 hours and he's frustrated too yep it sounds like the the dating thing is like a sidebar to the overarching issue it sounds like for both of you this is just a job it sounds like

you're you're going there you're doing the thing but you're not as ken would say it doesn't sound like you have the juice you know does he need to go to i'm like can you both go get different jobs elsewhere um i i think so i mean it's just scary, you know, walking away from a place that's paying me so much and benefits and stuff. What's the salary? Taking a chance. My salary is 78. And what's he making? About 84. Are they similar roles?

Yeah. Can you, you know, have you done any research to find out you know if there's anything out there that interests you or you know i think it's time to start asking some questions is basically what i'm saying it's time to start asking is there a better role out there is this ultimately what i want to be doing am i in the area that i want to be in am i open to moving start start dreaming a little bit start asking some questions and I think you know I think that we should set her up with Ken's book Paycheck to Purpose yes because I think that you guys need to just it might just be the you're frustrated in this season but the vibe I'm getting

is that you're not happy in this job like at all and it was just the straw that broke the camel's back with the hr situation and and you know what here's the thing with salary salary is great it's great when you are earning a a wage that that you like you know in this case you're like man i'm earning a lot of money it's hard to walk away from that but you got to be you're spending so much of your time there it's your job your work is way more than what you earn all right you got to feel like you're being challenged you got to feel what you earn. All right. You got to feel like you're being challenged. You got to feel like you're doing work that matters. You got to feel like, let me tell you something. Every day I come into work, I'm excited. And even before I came to

Ramsey, the job I had worked before that, when I go into work, if you're not excited about what you do, if it doesn't fire you up, if you're not feeling like, yes, I get to do this every day, it's time to start thinking day it's time to start thinking it's time to start dreaming yeah so you've got your homework Abby number one we're going to send you from paycheck to purpose you and your boyfriend can read that but number two start doing your homework and start applying places and see what's out there because I think right now in your head you're kind of comfortable it's safe it. It's a good job. It's not the best, but they're overworking you. But you don't think you're worth 78,000 elsewhere. And I think that is the biggest myth

of all. Yeah. You've got something to offer. If you're making it now, you can make it again. Exactly. And make it and then some. Even if you took a slight pay cut and started working 40 hours a week, that's still a better deal because you got 20 hours of your life back. So I think you know what to do, but it's scary when you've been at a place for a long time and you're going, I got to do this. Got to clean up the resume, which by the way, Ken's got some great resources at kencolman.com, resume templates, his get clear assessment for anyone listening out there who's feeling the same way Abby is going, there's got to be something else out there. Because people don't hate the idea of work. They really just hate their jobs and they hate their companies and they hate their toxic leaders. And that stuff

can be fixed. That's true. But like you said, George, it's tough to step out. You have to ask yourself, is it more uncomfortable for me to stay in that position or is it more uncomfortable? You know, you've got to be willing to step out and it's not easy but it will it can it can repay in spades thanks for the question abby evan joined us joins us up next in kokomo indiana evan i didn't know there was a kokomo indiana now i'm really happy about it well yeah there you go thank you guys so much how are you doing my call i'm doing well how are you good good what's your question i'll get right to it um so i was fortunate enough to receive a full ride scholarship for my undergraduate education.

Sweet. But I had a very wise parents who saved about $25,000 for me and a 529. And I don't plan to pursue any higher level of education after I graduate next spring. And I don't know what to do with that money or how to get it out, considering I believe it's a 10% penalty plus capital gains tax to pull that out. So I didn't know what my options were moving forward. How old are you?

I am 20 years old. All right, cool, cool. And you're single, I assume? Not for long, but yes. Oh, that's exciting. Okay, so there are a lot of options, and there are some new rulings as well, which is cool with the 529 plan that just came out for, I think, 2024.

It's going to be applicable, where you can actually transfer 529 funds into a retirement account. That's right. And that's what I was thinking. This money is still going to serve you. It's just not going to serve you in the way that it was initially intended to, which is a good thing. And beyond that, I mean, you're probably going to have kids one day, right? Sure. And so you could use that towards your child's future needs.

You can change the beneficiary on there. That's right. Do you have any student loans? Or do you go to them completely debt-free now? It's completely debt-free. Okay, awesome. So that would be my plan is right now, I would just hang on to it.

And as the law change happens and you're able to transfer that into a retirement account, that's a great option. Or if you're like, hey, I'm getting married. We're going to have kids. I can just transfer these funds to my kid. That's right. Because you can, it's very loose. You could even transfer that, make the beneficiary a niece, a nephew, a cousin. I mean, the language is very loose, which is great. Does it go over, would it go

over to a spouse? A wife? That's a good question. I believe so. I think it does. I'd have to look into the fine print there. Yeah. The good thing is, you know, your parents set this money aside for you and it has the potential to really serve in a generational way. You know, if it wasn't just for you, you know, you have the ability to pass it on to your kids. You can go into retirement later on. I think that's amazing. That's exciting. And a fun fact for those that get scholarships, like, well, this stinks. I saved all this money and I got a scholarship. Well, you can take out that amount from the 529 tax-free against the scholarship.

So that's a really cool thing for those that have that situation. I love that. How's that sound, Evan? It's exciting. A lot more clarity than I had when I called in. Good problem to have, man. Way to go. It's a great problem to have.

I graduated debt-free and now I got money sitting in a 529. Okay29 okay that's fantastic and we found out that kokomo is a real place the beach boys learn something every day gosh i love it i don't know that they were thinking about indiana at the time you don't think that they wanted us to vacation in kokomo indiana i'm sure it's a lovely place truly i love it they said it's where we want to go well jay there was a theme in today's show and that is young people doing really smart things yes i've been feeling that theme all week long i feel invigorated i feel like i got a new lease on life and you know where it stems from is the parents yes so years ago the parents got a hold of the ramsey plan or common sense wisdom and went hey what if we just stayed out of debt and were able to pay for a kid's college and had money in the bank? And all of a sudden you create

generational change. Okay. By doing that. And now we're getting 15 year olds, 19 year olds calling in saying, hey, I have no debt in a pile of money. What do I do? I'm like, this is the best problem to have. We love to see it. Keep guys, keep calling in. This is what it's all about. Changing your family tree, changing your legacy right here on The Ramsey Show. My thanks to my co-host, Jade Warshaw, all the folks in the booth, and you, America, thanks for tuning in. Until next time, spend wisely, save intentionally, and give generously. Do you love a good day, Brandt?

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