The Ramsey Show - App - How Do I Adjust to Life After Beans and Rice? (Hour 2)

Episode Date: June 16, 2020

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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. Thank you for joining us. Open phones this hour. Anthony O'Neill, Ramsey personality, is my co-host today here on the air. Phone number here is 888-825-5225. That's 888-825-5225.

Andrea starts off this hour in Colorado. Hey, Andrea, how are you? Good, thank you. How are you doing? Better than I deserve. What's up? Dave, I wanted to call today and ask you, what kind of insurance or protection do you think that my family should carry if my husband were to continue to be in law enforcement after a bill passed

increasing liability for officers and their families and we had a young officer call yesterday on the air from colorado and told me about that bill and he's quitting because of it um very sad um i don't know i mean uh this would be the one of the first times that uh something like this has happened in American history. In recent, in modern times, anyway. I don't know if Wyatt Earp had these issues, okay? But I'm talking about in modern times. Yeah.

And so, I don't know. that something like the Fraternal Order of Police or your police union will develop a market for an insurance company to write policies to cover. If I heard correctly yesterday, it's a $25,000 liability if misbehavior is proven, a civil liability, correct? Yes, so it's up to $25, dollars or five percent depending on which one is less um five percent of your income in the way five percent of the lawsuit oh okay well it'll be twenty five thousand dollars okay because nobody's going to go after a police officer for less um that's it's going to be i mean it's going to be half

million dollar minimum so that that's easy uh my guess is you're in the industry the law enforcement world will uh come up with a group policy that he can buy into so be watching for that um i'm sure the uh the uh the municipalities are working on the possibility of setting that up uh and or the unions are working on a way to set that up to where either you guys buy it or they buy it for you one of the two um but um yeah you're gonna need to cover that uh because of the environment that we're in right now um he's just he's he's gonna be a target yeah is the problem uh in terms of the liability i don't mean physical target he may be that too but i'm not i'm not trying to be melodramatic i'm just saying that obviously when it's the environment allows the legislature politically to make a move like this, it puts your family at risk.

It's sad, really. It's disgusting. It seems like we live outside of Denver. Our department is not as big. Our town is not as big. And it seems like right now our department, specifically here that we know of, they're kind of scrambling to figure out what to do in response because a lot of officers are wanting to leave the department. Sure.

And so they seem like they're kind of scrambling to know how to protect their officers. Should we carry some sort of umbrella policy until that happens? There's not a policy. This is a specific, it's like an errors's not a policy. This is a specific... It's like an errors and omissions policy. If, you know, in a professional setting, for instance, I have a real estate license, and the real estate commission requires we buy an E&O policy.

And so as a real estate agent in the state of Tennessee, if someone gets messed up or if there's a mistake on a home and I'm liable, that E&O policy covers it. And that's basically what this kind of a thing is going to be. But it doesn't exist. The policy doesn't exist today because the legislation, it's unprecedented. It's brand new, this idea that somehow, this idea that this is going to be a deterrent for bad cops, which is, you know, again, it's just my opinion, but I think it's asinine.

So, because I think it's going to drive all the good cops out of the business. Yeah. I mean, it's crazy. And so they're going to, I mean, I've already, this is two calls I've had on this in two days, and both of them are telling me about people quitting the pop forces. And so, duh, you know, dumb butt legislature. But what do I know?

I'm just an ignorant hillbilly, right? So, anyway, I'd be frustrated with you and supportive of the people in law enforcement that do a good job and that aren't racist jerks um and that's most of them yeah and uh uh but uh you know there's a there's a way to solve some of these issues and this is not it uh so anyway uh in the meantime you personally i'm going to be talking to your force because i'd say your force is scrambling and I do not know how to cover it in the interim until a policy of this type is formed. It is an errors and omission a professional misconduct policy

or something in those areas and there'll be an insurance company that'll be willing to insure for some amount of premium that liability per officer and they'll likely provide it to you guys in bulk. It would make sense to do it.

And if I were in the insurance business, I'd be putting the product together like crazy this week. Right. Because I think there's a whole bunch of people in Colorado that would buy it, called every police officer, every sheriff, everybody in law enforcement, the whole stinking state would buy it. It's a gold mine for an insurance company. So I think you're going to see a response in the market because there's just this sudden, nuanced, weird need that you guys have.

It's a mess, Anthony. It really is. David, this is actually my first time hearing about it. Is this only in Colorado? Only in Colorado. Colorado passed it, and the governor signed it either yesterday or today um saying that if uh you know the essence of it as i understand from two police officers this wife of one and another one was that if a police officer misbehaves and there's a lawsuit um then they are um you know they're going to be hit with $25,000 in penalties. Now, obviously, you know, we've had some officers misbehave over a lot of years.

Right. But most thinking people's contention is that that's not the majority of them. I agree. It's not like 50%. It's not 70%. It's not something like that. And so, yeah, let's go ahead and throw the baby out with the bathwater, in other words. But that's rough.

Yeah. It puts it, you know, because the guy yesterday is making $37,000 a year. And he's like, I keep a $37,000 a year job where people are pointing guns at me, and I'm liable for $25,000 if somebody just decides to get jacked up and sue me. He goes, I'm out of here. I'm going to go start another career. And that was yesterday. And she said, she didn't say her husband was quitting, but she said several people on the force, on their particular force, are leaving.

Let me be honest. If I'm making $37,000 a year, I'm quitting today. Yeah, well, I mean, and the environment. Yeah. It's, you can't do nothing right. You can't. So, it's a mess. And that's not to in any way condone people who misbehave.

Right. You and I have talked about that openly here on the air. Yes, sir. I don't know why it's inconsistent to say, I don't, you know, racism sucks and bad cops suck and good cops don't. Why is that inconsistent? Why can you not be all of that and still be logical? This is the Dave Ramsey Show. Business leaders, now more than ever,

we need people with the right skills to support our communities, especially the frontline workers who provide resources and care for those most in need. To help, LinkedIn is offering free job posts for healthcare and essential service organizations that need to quickly fill critical roles with the people who help us all. If you are hiring for one of these organizations, free job posts on LinkedIn can help you quickly find the right people for your front line. LinkedIn jobs can help by screening candidates for skills and experience you're looking for

and putting your job post in front of qualified people who have what you're looking for so you can find the right person to quickly fill critical roles. To post a health care or essential service job for free, or if you're in another industry and have hiring needs, visit linkedin.com slash Ramsey. LinkedIn.com slash Ramsey. Terms and conditions apply. Anthony O'Neill, my co-host of this hour here on The Dave Ramsey Show. I'm your host, Dave Ramsey. Anthony, you have become one of the nation's leading experts on the student loan crisis,

the popularity of your number one best-selling book debt-free degree and of course our uh i think we're on about our two millionth download on the uh uh the the podcast series borrowed future and um you and i are both featured in that you much more prominently than me but our team put that together it's a ramsey network uh eight episode podcast on the debacle that is the student loan industry it's out of control it is it really is dave and there's no secret uh that we have a student loan crisis in our country you know nearly 1.6 trillion dollars in student loan debt and right now currently over 5 million borrowers are in default on their student loan payments and day when i started doing the research on the default, every 28 seconds, someone

technically is going into default when it comes to student loans. And so this is one thing that... That means you are either screwed or you know somebody that is. Yes, sir. And we're praying that our tribe is getting out of it, but they do know someone who is screwed. And here's one thing about student loans that people just don't understand

how they really work or the negative effect that they have on their future. And then that bothers me. You have young people, Dave, who are graduating, graduating college, going into the workforce,

and nearly 90% of them are saying, my dream is not to buy a home. My dream is not to start a family. It's not to buy a nice car. My dream is to get out of student loan debt. So if you're an employer and you could help someone live their dream by getting out of student loan debt, that has become quite the hot HR topic lately. It really has the idea that um

you know most people were living paycheck to paycheck and they've got the student loan debt as a part of that program and so workplace student loan programs where employers are helping with student loans or attempting to help with student loans have become a big thing the problem is like anything like this there's always some shysters that get in the business really is there's some people that get in and say oh well we'll we'll tell you how to help with your student loan wink wink yeah nod nod grin slyly with a thin mustache i mean snidely whiplash right i mean come on really so uh but and you know some of

these things are just consolidations some of them are are jacked up ways to get them into higher rates some of them are bait and switch to get to be able to offer them like this sofa crap yes where you know a sofa is like oh we're a bunch of little millennials dancing on the screen and everybody likes sofa but when you get behind the curtain on SoFi, all it is is your neighborhood jack-leg lender from the mall. Yeah. And they're just loaning people money at ridiculous interest rates. They just put a little pretty millennial face on it. That's all they did.

Yeah. But here's a cool thing. There is actually legitimate ways for HR companies, for HR, to help people with their student loans. That's not a symptom. It's a real problem. And you can really help people with their student loans. That's not a symptom. It's a real problem, and you can really help people with this. The CARES Act that just passed, the stimulus act that just passed, made it fully deductible and tax-free.

There we go. Now, that's different than it was. It was already deductible because it was an HR expense. Yeah. But now it's tax free the the uh employee so as an employer if you pay off three thousand five thousand dollars of your employee student loans you you get to deduct it and they don't get charged on his income they used to have to pay income tax on that as a benefit okay now they don't and you don't get hit fica yes on both

sides payroll tax on both sides so the cares act has made this a sweet deal for you employers to put 100 cents on the dollar on the student loan of your employee. I love it. Ding, ding. Yes. This is a good plan. Yes. But just be careful how you're implementing it and what company you're using or if you're using some company. And don't allow the shysters in the door with the evil laugh in the background it's like one of those bad cartoons that my uh my

my grandkids watch you know in the background right that's the crap that gets into this thing so be careful and get the right kind of people in there where the hundred cent dollars are simply going to it and it's deductible so have your tax people look at it, HR people, and have your CFO look at it, and you can get a deductible as long as this runs, and I would pay off a bunch. You want to attract some talent right now? There's some talent on the street, HR. They lost their jobs because of COVID. You want to attract some talent?

Offer a student loan deal where you'll pay off a certain amount of their student loans and you get the full deduction. It doesn't count as income for them for a period of time here while the CARES Act is in place. Now, here's the thing. Our smart dollar team can help you walk this out. Yes, sir. And you know what? Chris Hogan and I did some videos for them to help them out with this, teaching their employees how to be good stewards and just make good decisions with their money in general. So not just attacking their student loans, but debt and all of it, Dave.

We pretty much invented the phrase financial wellness in corporate America. We own financialwellness.com. Yes. So we are it. Everybody else is a wannabe. Yes. And so our program is called Smart Dollar. Costco, companies like that have all their employees going through learning how to handle money.

You combine that kind of stuff with some student loan help, and you've got a real HR program that's got some juice to it, baby. And it'll actually help. So here's the thing. If you want to learn about workplace student loan programs, the Smart Dollar team has put together a completely free handout. Yeah. It's the Workplace to Student Loan Programs Guide. The Guide to Workplace Student Loan Programs. It's a long phrase.

Okay. Here's how you get it. Listen up, HR. Listen up, CFOs. Listen up, you CEOs who actually help your people. Okay? Guide to Workplace Student Loan Programs. You get it free by going to

smartdollar.com slash guide smartdollar.com slash guide and then you can figure out exactly how to do some of these student loan repayment programs get all the tax benefits without letting snidely whiplash into the building you don't even know who that is, do you? No, sir. He's the evil guy that used to tie the girl up and put her on the train tracks on the cartoon in front of the train. I remember now. Okay. I do. And he was the original evil laugh guy. See?

Yeah. I'm not that old. Well, it's an old cartoon. You would have been a rerun when you watched it. But anyway. All right. Okay. So you've got to have the evil laugh to go with it.

So go to smartdollar.com slash guide. Get this guide and at a minimum learn how to do this. Because listen, guys, those of you, I talked to a guy last night. He's in the printing business. He had a $27 million company. After COVID, he kept printing. He kept working. None of his competitors were.

You know what he's done in the last 60 days? He made it. He's almost doubled the company. It's now a $50 million company. That's what I'm talking about. He said, I hired 300 people. Yeah. And so all the stories on COVID of people going broke are not the only side of the equation.

Some of these businesses are exploding right now, and some of you are starting businesses right now, and there's a lot of talent on the street. They got furloughed by businesses that couldn't keep them. They got laid off by businesses that couldn't keep them, and they're valuable people. And if you want to do an attractive program, have stuff like financial wellness, like Smart Dollar in place, and take advantage of this cares act and pay some of their student loans as a recruiting tool yes ding ding you get some people's attention yeah dave and you're a ceo david wouldn't you don't you love the fact that majority of your employees are

financially healthy they can come to work and focus and and just really focus on the job not worry about having to have this money to pay off all their debt and bills and if you don't have MasterCard calling you at work, you actually get work done. It's an amazing idea. I love it. It's called productivity increase. I remember when MasterCard called me at work one day. Really? Yeah.

Not since you've been here. No, sir. We don't let them through the switchboard. No. If you work for who? No. That was when I was 19 getting out of debt.

Guide to workplace student loan programs completely free. Go to smartdollar.com slash guide and learn about this. See, the thing about the CARES Act,

the stimulus bill is, it's 2,300 pages. Yeah. And there's all kinds of stuff in there that the people who signed the bill in Congress

didn't even know was in there. And some of it's actually good. Most of it in there. And some of it's actually good. Most of it's crap. But some of it's actually good. This is actually a good thing. Employers can write this off. Employees can take the benefit without it being taxable income.

Ding, ding, baby. All right. Guide to Workplace Student Loan Programs. One more time. It's free. Go to smartdollar.com slash guide. This is the Dave Ramsey Show. Hey, folks. Father's Day is just around the corner.

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That means if your dad no longer likes the fit or style of his belt, he can replace it for free. Plus, these guys do business right. They make their products and source their materials in the U.S. So show dad you love him and get a Grip6 belt. To get the Dave Ramsey special, visit Grip6.S. So show Dad you love him and get a GRIP6 belt. To get the Dave Ramsey special, visit GRIP6.com. Well, we love debt-free screams around here. And we love our team working this plan. Sure do. Because that means we have smart people working on our team.

Yes, sir. And so we really super love it when our team does a debt-free scream, and that's what we got right now. So Chris Windings has been with us for about 10 months as a developer with the Ramsey Personalities team, and his wife, Alex, joins us on the debt-free stage to do your debt-free scream. Welcome, guys. Hey, Dave. Wow. How weird is it to work at a place where you do

a debt-free scream for 17 million people it's getting weirder every day matter of fact i hadn't thought about it just now and i'm getting real nervous okay so how much debt have you guys paid off about 86,000 in 22 months wow cool and um i'm not gonna ask you what your income is because that's not fair with all your teammates standing around. So we waive that question only for team members when they're here because everybody's standing around and we obviously don't spread people's income. So what kind of debt, though, was the $86,000? What did you people buy? A lot of student loans.

Chris went to Middle Tennessee State out of state, so he had a ton of student loan debts from there. I had student loan debts, and we also had a couple cars. Okay. And then a small business loan as well. He had a small business that he had a loan out of. So how long have you all been married? Five and a half years. Yep. Okay. So if I got my math right, you've been here about 10 months, and you've been out of debt for 22 months.

I've been working on getting out of debt for 22 months. So roughly a year before you came here, you were already working on this. Tell me the story. What started it? So it actually started about probably four or five months after we got married. When we got married, I started kind of looking at our finances. I'm an Enneagram 6, so my core longing is to be safe and secure. And when I started looking at that, I was like, this is not safe and secure at all.

This is stressful. No, it's kind of the opposite. Because when we got married, he was still in school. He had about another year left. I had just gotten out. So, you know, the six months after you, you know, that loan starts coming in, you're like, oh, gosh. So I started kind of looking at everything,

and I was like, we've got to figure this out. And so I kind of had a conversation with him. I talked at him a lot, as you, we've got to figure this out. And so I kind of had a conversation with him. I talked at him a lot as you know, we do as the nerd here. And so I kind of started talking at him and he was like, you know, whatever, he's a pretty agreeable guy.

So he was like, sure, let's do it. And both of us were really pretty Davis for a while there, but we still, we still paid off both of our scars at the time and all my student loans. And then it kind of led us up to a couple of years ago, about 24 months ago, his car from college died on us. And

he was like, we were both like, what do we do? We still have all these student loans left. What do we do with this? And I was like, well, let's get a hoopty. Let's go. We're going to hoopty. We're going to go get a $2,000, $3,000 car. And Chris was like, well, let's get a hoopty. Let's go. We're getting a hoopty. We're going to go get a $2,000, $3,000 car. Chris was like, no, we're not. He was like, your dad will kill me if I have you driving around a car that is going to break down on the side of the road. I'm certainly not giving you my good car. Exactly.

It was kind of like, all right. We kind of went from there. At the time, when we got married, we were 21. We were pretty young. And in my head, I think a lot of people have this mentality of marriage is going to be all rainbows and unicorns and butterflies and happy feelings all the time. And about that time, it was not at all. It's a lie. And I found myself a couple nights laying in bed crying, asking God, why did I do this? Like, why did I get married? You know, this is not what I thought it was going to be. Please get us out of this. Like, we've got, something's got to change here.

And I think that was a huge kind of turning point a little bit. I started reaching out to some friends who were counselors, and they were like, you guys really should go to marriage counseling and start just not talking at one another, but really communicating as a team and looking at your future together and your goals together versus separately and just like pushing Chris along with you. So do you want to kind of talk a little bit into the, what kind of happened next? Yeah. Yeah. So pride is a huge part of my story.

Being able to swallow the pride and go to counseling was a huge thing. And then when we finally, Dr. John Deloney says it a lot, we think in pictures, we talk in words. That was a big deal whenever we decided to get on the same page and paint our picture and start going after what we wanted together. Unfortunately, it took me way too long to realize that. And by that time, you know, I was doing a side hustle, doing the thing that, you know, every smart, prideful person does. And so I had this little thing going and used that to do it.

And even though I knew that she was running so hard in this direction, I didn't have my why. I wasn't going in that direction. So I guess a little bit after the time period where we bought the car, we kind of had, I guess, just one day where she just saw my account balance on the side business that I had. And we've been working for like a year in counseling at that point. And it was one of those things where she saw it and she saw I had debt and she saw, you know, how hard or I knew how hard she was working, yet I ignored it. So it felt, it was very painful. So it was, it was at that point, I developed my why. Like I had my never again moment. I'm sitting there. I'm not wanted in my house.

I'm not trusted. And so at that point I just decided again, this is not going to happen ever again. And then we just got intense. We just kept going for it. And then how did you end up working here in the middle of this? I ask myself that every day. That was a random. That's pretty cool.

Yeah, it was a God thing. I mean, it's like you got the trajectory going and then you get in the most positive peer pressure possible situation for the last 10 months of it. Yeah, since March, we've actually paid off $24,000 of that from March to now. So we got, it was intense. We were both doing DoorDash on the weekends and at night. We were working. I had three jobs during this time. I mean, we were just going for it.

COVID hit us in April and our water heater went out and then our faucet broke. And it was like life just kept pushing against us. And we were like either you just got to double down and get through it yeah um because i said originally in january our payoff date was october for our anniversary and i was like that's too far it's too far i'm done i'm over this and so i was like let's move it up so we kind of got it to august and then in march i was like what if we tried for my birthday and that that's today, actually. My birthday is today. Happy birthday.

Thank you. And he was like, you're crazy. And I'm like, yeah, but let's just do it. Why not? It's kind of crazy in a good way. And so he was just like, all right, if that's what you want, let's go for it. And then we just kind of hit it. We just hit it.

I want to ask this question. For young couples out there who are listening to you all right now um what advice would you all give them who are she's sleeping in the bed like you saying what do i do you chris you man you remind me of me you know uh i'm a prideful guy too i'm gonna be honest like what what should that young couple do if they're in y'all's shoes right now? Can I go? Okay. I think for one of the things is just be patient. And I know that's hard because I am not a patient person. I want this now and I want it done my way right now. And so it was just patience and just going to God and saying,

I'm going to have to give this over to you because I can't do this anymore. And just be patient because they eventually do come around and they get on that gazelle with you and they go. They hit that door dash after it with you and they just go. So just be patient. And it's hard, but it's so worth it. It's so worth it. Yeah, mine is definitely don't reject wisdom just because it's simple.

You can let your pride blind you to things that are right in front of you. Wow. And it's not that hard conceptually to walk these baby steps. You just got to do it. Yeah. I'm so proud of you guys. And until you just decide to do it, you'll never do it. So just start.

Yeah. So proud of y'all. Way to go, heroes. So glad you're on the team, brother. start. Yeah. So proud of y'all. Way to go, heroes. So glad you're on the team, brother. Yeah. Well done. Very, very well done. You're good folks. $86,000 paid off in 22 months.

Chris and Alex. Chris is on our team here at Ramsey, and we're proud to say that. Count it down. Let's hear a debt-free scream! 3, 2, 1. hear a debt-free scream! 3, 2, 1, we're debt-free! That's how it's done, baby. I love it!

This is the Dave Ramsey Show. show. Folks, save cash by fixing your major appliances yourself. Get your parts from my friends at Appliance Parts Pros. We just heard from a listener who said he saved his family at least $500 by getting his parts and expert advice to fix his leaky fridge and dishwasher from Appliance Parts Pros. These guys carry over 2 million appliance and outdoor power equipment parts and offer easy returns. Order your parts today at ApplianceP from Blinds.com.

Find out for yourself why Blinds.com is the number one online retailer of custom window coverings. You get free samples, free shipping. And with the new promos they run every month, you'll save even more. Use the promo code Ramsey to get the best possible deal so anthony who's got our question of the day oh man we have a question today uh comes in from tia in texas she visits day ramsey.com to ask i've been paying off 33 000 worth of consumer debt and student loans the last six months and i'm 7k from being debt free. However, my job offers a student loan repayment program where they pay $170 per month up to 60 months. Doing this, it would take 29 months to pay off the loan.

Should I do this and shift my focus to saving for a house? So it's how much a month? $170 per month. Okay. And she's 7K away. That's $2,000 a house. So it's how much a month? $170 per month. Okay. And she's 7K away. That's $2,000 a year. Yep. And so that's not...

And then she said it's going to take how long? She said it would take her 60 months. I mean, no. Six, no. Doing this, it would take me 29 months to pay off the loan. That won't pay it off in 29 months. That what i was 2 000 times uh two years is not that's not going to get you there no it's not um unless it's some kind of a match or something i think you should still do it though and just continue paying on top of that too yeah but i wouldn't wait for 171 a month to get rid of it

i'd take the 171 a month as long as i could while i'm getting out of debt but i just clear that debt exactly it's uh it's two grand a year it's not it's not life-changing right if they're going to pay off the seven the whole seven grand in one year or something would we wait a few months to get that yeah but not for a couple grand a year. And it's stretching out several years here. No, I wouldn't. I would take the money as long as you're in debt. They'll do that because I'm sure it's a matching program.

What do you think? I agree. I totally agree, Derek. I'm not waiting. I'm going to go ahead and tap my debt now. And if they're going to give that, give it. But, I mean, I'm not going to wait for it. So it's weird this year.

Tax day is not April 15th. No july 15th and of course people can file an extension still to october 15th uh reminding you that if you file an extension by the way it does not delay the fact that your taxes are due it does not do away with penalties it does not do away away with interest. It just says you can wait. But they're still going to charge you for not having paid your taxes on time. It doesn't extend the tax date. But if you want to do that, if you need to do an extension and you can't get your taxes done right now, your taxes are complicated, you may need to sit down with a tax professional. And we have tax-endorsed local providers at DaveRamsey.com slash ELP.

Click on Tax Services. If you have a really simple return, you probably don't need to spend that money. It's, you know, but it's not that big a deal. But you can, if you have a complicated return, if you're self-employed or you've got several sources of income or you're in a situation where you need an extension and that kind of thing, then it's going to be worth it to have a tax professional on your team. I can promise you I don't do my own taxes. I also don't pull my own teeth. Nor do I do fillings on myself.

That would hurt. So DaveRamsey.com slash ELP and click on tax. George is in Arizona. Hi, George. Welcome to the Dave Ramsey Show. Hi, Dave. Hi, Anthony. I'm really excited to have the opportunity to talk to you guys today.

You too. My wife and I immigrated to the U.S. about 2015, and we just came through a season where we completed our advanced degrees, advanced trainings, and we got through that paying for it, out of pocket, taking jobs. And before that, I wasn't even exposed to your material and your videos, which I came in contact with last year. Wow, good for you. Thank you very much.

We're stepping into a new season in our lives, and just wanted to get your advice on how we manage the emotions of moving from beans to rice and rice to beans to now. Filet mignon, baby! Lobster! Amen. Yes. So where did you immigrate from um we moved here from nine we moved to the u.s from nigeria nigeria cool and what's your career um we're healthcare professionals my wife is a doctor and i'm a hospital executive awesome so your household income is north of 300k

correct oh and how old are you all george um i'm 31 and she's 29 i love it well congratulations dude you're rock stars hero well done thank you very much okay so what are the emotions i'm i was picking on you with filet mignon and lobster you might might not even eat that, but that's my fave. So one of my faves. I got a lot of faves. But what are the emotions you're dealing with? It's really, first of all, just not being able to afford certain things and now stepping into a place where you can.

But we're planning for a house and we're giving ourselves six to eight months to make that transition. We're currently renting. We have a budget for virtually everything. And it's just really the emotion of, okay, now you can see cash. And how do you make, what do you do? We have those instructions in your books, um, on what to do, but there's still going to be available cash. Man, you know, I remember that feeling George, when I paid off all my debt and then when God allowed me to start making a little bit more money and then joining Dave's team here,

really seeing my income go up. And I was like, man, what do I, what do I do? I don't have debt. I mean, I have all this money coming in. And let me tell you, the very first thing that I did is I really sat down and it got very clear with my budget because we hear Rachel Cruz say this all the time. The budget gives you permission to spend. And so Dave was joking in the very beginning, but you, you sacrifice and you ate rice and

beans for a while. There's nothing wrong with feeling bad about having a nice filet, having a nice out to eat dinner, even buying you something nice or spending some good money on your home. But the thing is, make sure that you're living still living below your means, because here's what I see. Oftentimes, Dave, is people get out of debt. They get excited and then they still go right back to living paycheck to paycheck. Yeah, I don't think George is going to do that. No, sir. No, he's got a cultural foundation and a price he's paid where I don't worry about regression with you.

Yeah. But it's good advice, the overall thing, the idea of having a game plan. So, George, what I started doing, and then I passed this on to a lot of high-income earners that I have sat with in the music business or the professional athletes or, in some cases, health care professionals even over the years. And what we started doing, Sharon and I started doing this years ago, and it's worked really well for us. It's helped us have a sense of control over the spiritual aspects of wealth and not get run over by that train and also have control over the emotional aspects that you're talking about yeah what we do is we set a baseline budget

for our household that enjoy that allows us to enjoy life reasonably well. Okay? In your case, that's $100,000, $150,000 minimum. Okay? And then we take everything above that, and we say we're going to apply ratios to it. Whatever dollars come in beyond that baseline budget, we say we're going to apply ratios to it. And the ratio is this. 40% is going to go to taxes. 10% where Christians goes to tithe.

So that leaves me 50%. That remaining 50% of 50 cents on every dollar beyond my baseline budget, I allocate some percentage of that 50% to lifestyle and give it an actual number. 5%, 7%, 2%, 15%. I don't care. But that's enjoyment money. That's the nice car, the nice vacation money. You freaking earned it.

Yes. Okay. Then take a percentage of that 50% and increased additional outrageous generosity. And then take a percentage of that 50% for increased additional investing. And so always invest some, always give some, always enjoy some, and have an exact percentage out of every dollar. So no matter what your income is, you're enjoying a little bit more, you're giving a little bit more, and you're investing a little bit more. And you got it set, and then you don't have to worry about it. You don't have to think about it again. It's autopilot. And then that money's sitting there, and you go, a little bit more and you got it set and then you don't have to worry about it you don't think about it again it's autopilot and then that money's sitting

there and you go well it's vacation money that's i'm gonna buy something money or that's i'm gonna give this money away that's fun and it is fun so you got to have a game plan like that and that takes a lot of the emotional pressure off the day-to-day struggle of am i evil for having done this this is james childs producer 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.