The Ramsey Show - App - How Do I Change My Impulsive Spending Habit? (Hour 3)

Episode Date: February 5, 2021

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Music Music Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studio, this is the Dave Ramsey Show, where America hangs out to have a conversation about your money and your life. I'm Dr. John Deloney, here with best-selling author and good friend Anthony O'Neill,

host of The Table with Anthony O'Neill, world-class YouTube and podcast, and we are here to take calls on anything going on in your hearts, in your minds, in your home, struggling with the person you see in the mirror, your kids, your family, your money, anything. Give us a shout, 888-825-5225, 888-825-5225, 888-825-5225.

All right, let's go to Lucas in Providence, Rhode Island. Lucas, how are we doing? What can we do to help? I'm doing good. Thanks for having me on. You bet. What's going on? So I'm a freshman engineering student at URI,

and I'm planning on working a lot, you know, over the summer, making a lot of money, and I should be able to graduate debt-free, you know. I'm not going to have a lot of money after, but I should be able to graduate pretty much debt-free. But I'm wondering if I should take out a student loan anyways, just because it's looking like there might be some sort of relief bill going through government. So I don't know what your guys' thoughts are on that. Oh, you want to try to take out a loan and see if you can get a year or two paid off for free? relief bill going through government so i don't know what your guys thoughts are on that oh you want to try to take out a loan and catch the see if you can get a year or two paid off for free is that what you're trying to just kind of back in scam the system yeah because like um i should

be able to graduate that fee but i'm not 100 sure you know so i figure so if i did have to take one out and be towards the end something should i just do that now instead you're you're asking questions i'm gonna turn this over to anthony here but you're asking should questions against a math problem so you should be able to know here's what's going to cost here's how much money i have and will earn not can but will earn where's the should coming in from um no i mean mean, based on the math I did, I will be able to graduate debt-free.

Ah, there you go. I'll have like 20 bucks and a t-shirt with my name. Hey, what else you'll have? Your dignity, your pride. You'll have accomplished something major

and then you'll be able to slide on to the next step. I'm going to turn it over to Anthony. This is his wheelhouse. I ain't got nothing to say. He just said exactly what he said

so I'm going to borrow money when I know I can become debt free that is a dumb move Lucas don't do it that's a dumb move if you know you can graduate 100% debt free why do you still want to go out

there and put yourself in debt hoping and praying that the government will eventually come i mean has the government not showed us that we cannot trust them that that they are not they do not make the right decisions when it comes to money and so for you lucas what i'm going to say you already have it don't play with your life like that don't put yourself in that situation, bro. You are a smart man.

You are a young man. Do not make a dumb decision like that. I don't even want to finish the conversation. Don't do it. That's it. You know, I hadn't considered somebody seeing this and thinking, ooh, I can just go take out loans for anything, for a car. I can take them out for rent, for TVs, for another semester of college. Because the government's going to come in on a cape with a Superman logo on it and save us.

Yeah, but that is a stupid move. Oh, man, the government said they may forgive student loans down the road. Well, let me go get this money just so in case if they do it, cool, great. I got free money. Well, it's not free money. Somebody's going to pay for it. If you don't think – that's a great point. If you get your loans forgiven, there will come a moment where you, 20 years down the road, 30 years down the road, 10 years, or worse, your kids are going to have to pay

this back. And if you can get through it, if you can work your butt off, grind, scrape, get through college debt-free, do it. Yeah, it's not worth it. And then, too, and I'm looking, and I'm studying, I'm seeing what's out there with this new administration in the White House. And if if if if it does happen, there are some stip over to my show, come over to my YouTube, get my book debt free degree. And we will figure out a way to how to get you into college 100 percent debt free. But do not set yourself up to fail because you will set yourself up to fail.

Let's go to. All right. Let's go to Tracy in New Orleans. We talk about this all day. We get us all fired up. Call one. Tracy, what's going on? Hi, thank you going on? Hi. Thank you for taking my call. I had a question about moving and what should I do in an old 401k that I had sitting with a company. Okay.

I worked for a company for 19 years. I moved to a different job about six years ago. Okay. And I let that money sit there for now because I was in a good relationship with the financial advisors who were managing the money for me and we talked a lot, but they just switched companies.

Yeah. Don't know anything about the new company and not too comfortable with it. And I wanted to be a good idea just to, I was thinking about moving it and self-manage it from what I've learned

working with my other old financial advisor. Nah, nah, nah. What I would do, well, do you have a financial advisor now? I was dealing with the guy who was at the old company. Should I say the name of the company? Nah, don't worry about it. So do this. What I want you to do is when you hang out with us, look up SmartVestorPro.

Go to DaveRamsey.com, look up one of our SmartVest vests and pros and i want you to interview one person or what you're going to five people because five people are going to call you and find you someone that can help you out and what i want to do is tell them you want to move your 401k over to a traditional um uh traditional ira do not move it over to a roth ira tracy because here's the thing you're going to pay taxes on exactly so move it over to a traditional 401k. And then from there, just have them advise you on what to do moving forward. But honestly, I would have did this two, three years ago. Even if I was comfortable with it, comfortable with my financial advisor, I still would have moved it over. And so immediately what I'm doing top of next week or Monday is I'm jumping on the phone. I'm finding me a financial advisor.

I'm saying, hey, I want to move it over. How much money do you have in it right now, Tracy? About $200,000. Yeah, about $200,000. Yeah, man, you need to move that on over and get that invested into a growth stock mutual fund. And we can go from there. But absolutely, bro, that's what I would do. I do appreciate that.

And I appreciate you, bro. I was just wondering if i should make that move or not you know it's not a wonder if it's just i'm just wondering when are you going to do it and anthony you said the magic t-a-x it's that time of year again folks tax season filling your taxes is like going to the dentist no one wants to do it but we all have to and i get it they're not, but it can be easier. Our new tax filing software, Ramsey Smart Tax, is a simple and reliable way to get your taxes taken care of without the extra hassle. I'm doing this with me and my family's money.

That's how good it is. You're doing it too? I'm using the Ramsey Smart Tax product, so it's not something I'm trying to pitch that I don't use in my own house. Prices start at $17 for federal taxes. Text TAX to 33789. That's T-A-X to 33789. This is the Dave Ramsey Show. Thank you. Your number one wealth building tool is your income. For business owners, this comes as no surprise,

as you're used to putting in extra hours and watching your bottom line. That's why Christian Healthcare Ministries or CHM is a great option for those who are faith focused and budget conscious. CHM is not health insurance. Rather, it's a health cost sharing program. It's not harder, but it is different. To learn if CHM is a fit for you or your business, visit chministries.org slash budget. This is the Dave Ramsey Show. I'm Dr. John Deloney with my good friend Anthony O'Neill. We are taking your calls on money and life. 888-825-5225.

Let's go to Maria in Tampa, Florida. Maria, what's going on? Dr. John, Anthony, thank you so much for your time. I appreciate it very much. You got it. What's going on? Okay, so my question is regarding behavior changes throughout the process, the debt-free process. I know that we've made a bunch of positive changes, my husband and I.

I'm 27, he's 34, and we found Randy Solutions when we were homeless, living in a tent. Oh, wow. Thank goodness it's warm in Florida, but I mean, that's where we were. Okay. And we've, from that point, got gazelle in tents. We cash flowed into an apartment and all of the fixings, you know, the basic floor laws and everything. I have two small daughters. Now, my second one was just born in July. So after stork mode before my daughter was born,

we've kind of identified that both of us are impulsive, compulsive. And although I'm not spending money on things that are accruing new debt, I'm like, okay, there's $1,000 left on this card. There's an $1,000 emergency fund here. I can just build that back up. And, of course, that's like Murphy hits. So I totally drained our emergency fund. And then one thing after the other, back to the overdraft to the overdraft,

and just like a gut punch to myself and my husband like at the same time and i'm struggling with myself for making choices like that like am i really evolving in a positive way are we really taking steps forward and then just some insight and wisdom into this whole process because this is it's it's a lot and it's it's not just money it's behavior too and so maria i want to start this whole call off by telling you that you're courageous and i'm proud of you you've walked a journey that very few people in this country will ever understand from a tent to an apartment to mom to wife to co-creator of a future that you don't even have a picture for, that is brave and that is hard.

And Anthony and I salute you. Okay? So how did you guys end up in a tent? I think the main cause being living outside of our means. We have both been chronically underemployed, uh, since we've been together. We met when I, like right before I turned 19 and, um, I've been a CNA and I've been, uh, um, in a nursing home as an assistant. So I've done work and I'm a massage therapist and I think that we weren't earning enough. And then we were trying to rent a house that was just too much.

And then, um, we did things like rent a house that was just too much, and then we did things like go on our honeymoon on a credit card that I'm still paying off, and stuff like that kind of builds up. So here's what I hear. I hear two people that know how to work their butt off, that can grind it, can figure it out, and you made some mistakes with money. You made some not wise decisions. So here's the thing.

There is a difference between guilt and shame. You ever heard me talk about this? I don't think so. Okay. So I want you to think of guilt as a brick that you pick up. When you violate one of your core values, when you violate one of your ethical or moral boundaries, I think guilt can be a positive motivator. You've got to sit in it for a second, and it sucks.

It hurts. It's annoying. It's frustrating. It makes you cry. It makes people around you go, yep, that was you. Right? And so when it becomes shame is when you take that brick and you put it in your purse or your backpack and you say, I'm going to carry this forever because this is who I am.

I'm always going to screw this up. I am always, right when we're on the precipice of getting our money stuff together, I'm always going to be a joke. And here's the thing, Maria. of getting our money stuff together, I'm always going to be a joke. And here's the thing, Maria. It's hard for you to see it as you're telling us this story. I mean, Anthony and I were cheering you on. Yeah. You're an absolute rock star, and here's what you tried to do.

You got so excited. You got so gazelle intense. You were running so fast you tripped. Okay? You tripped. And you tried to do one little thing outside the plan, right? We all have been there. We've all done it. And here's what I need you to do. I need you to forgive Maria. Dust yourself off and say, I thought I was going to do the baby steps plus one, plus Maria. Maria steps. I stubbed my toe. It's good. We're back on.

I'm back in. And here's the thing. You are going to have to practice a series of new behaviors because you've never done this before. And when you screw up, when your husband screws up, and spoiler alert,

he'll screw up too, okay? You can be graceful with one another. You can feel that guilt because it's appropriate. And then you can put that brick down and start running again. Okay? And now I want you to take that grind because it's appropriate, and then you can put that brick down and start running again. Yeah. Okay? And now I want you to take that grindy hard work,

that hard work that you're working at a nursing home, you're working as a massage therapist, you're doing all these things. I want you to apply that to one or more positions in your area and your husband too that pays you what you're worth, that's going to work you towards a career that you love, that's going to get you out of this cycle, right? And it's going to be a season,

and it's going to be a challenge, but you're worth it, and y'all can do it. And then you're going to keep plugging away at these baby steps day after day. It's boring, not sexy, not cool, no fireworks, but you're going to keep going. And then you're going to look up, and y'all are going to have a whole new trajectory.

And I heard that little girl's voice in your background. You're changing your keep going, and then you're going to look up, and y'all are going to have a whole new trajectory. And I heard that little girl's voice in your background. You're changing your family tree, Maria, right? Yes, sir. Right? Yes. Is your husband all in? He's all in.

We're both all in. That's why it felt like such a blow. Okay. So are we back up? Are you going to put the brick down? Totally. Back up. Backpack, purse, fanny pack of bricks all down. And we're all in together? Yes.

When's the last time y'all had a date? Oh my goodness. It's been a while. Alright, so here's what I'm going to do. I want you to stay on the line. Friday, February 12th, that's next Friday. Me and my friend Rachel Cruz, Dave Ramsey's daughter, are doing a special Valentine's Day date night money and marriage event. And we're going to help couples all over the country.

This thing is selling like bananas. It's going to be a night where you can prop your feet up, get the kids to bed early. And you can prop your feet up. Y'all can hold hands. You can sit by each other on the couch, and we're going to talk to you about your marriage. We're going to talk to you about your money, how to come together even closer,

how to forgive one another, how to grow, and then we're going to launch you off into the next 75% of 2021 on with some tools on how to be better married and better connected with your money. Does that sound cool? Oh, my goodness. Thank you so much.

I appreciate that. Hey, that's on us. And listen, man, we are in your corner. Anthony, what words of wisdom do you have for our friend Maria? I don't have none. Nothing? You did a great job. Yeah, when you get done with this phone call, I just want to talk to you.

All right. Maria? Yes. Go forth. High five. Have a date on us. We were looking forward to hearing your debt-free scream in a few years when you call us back. What's up, Anthony?

I mean, man, you're just giving away your event, ain't you? Are you feeling generous today? We've sold so many. We had this projection into selling and selling. I am. After being in the meetings, I keep thinking, this is an event I would want to watch. And I know that sounds ridiculous because we're a part of it. But when I'm listening to Rachel walk through her content and when I'm walking, I think,

I want to be sitting by my wife when we hear this because I want to have this discussion together. And a couple of times, Anthony, I've gone home and home and said hey sheila i'm thinking about telling this story and she's like there's zero percent chance you tell that story that is staying in our house but there is some things that i had to get permission like you know what's so funny is you're going to help everyone go home to have a real good valentine's night with their spouse yep and you're going to go home and you're going to be sleeping on the couch i'm going to call call Anthony and say, listen, you got a real nice place. It's Valentine's. I'm going to be like, you ain't coming over here, buddy.

Can I stay in your basement? No, sirree. Yes, I am. I won't be no man on no Valentine's. Listen, I'll stay downstairs. I'm coming to your place for Valentine's. You should have shut up. No.

You should have done. Ladies and gentlemen, Marriage and Money, February 12th. Get your tickets at DaveRamsey.com. I promise you it's going to be good. I promise. Anthony, I'm going to give you a code, too, my man. I ain't going. You are.

I'm just going to go on your little laser watch you got there, your Apple watch. I don't know what they're called. This is The Dave Ramsey Show. let's go talk to carter in sioux falls south dakota carter what's going on how can we help hey guys thanks for having me um you bet i'm a college student um i'm in my second year of school i'm 20 years old and I'm graduating early next year in May. And I have $31,000 in student loan debt. And I'm just wondering, how do I go about paying off my next three semesters counting this next summer where I don't have to take out more student loans? That's such a great question, man. How much does it cost you to go to a school a year?

With my federal FAFSA and everything,'s about two thousand dollars per semester all right so you have two semesters uh correct three left i have classes this summer too all right cool so you have six thousand dollars that you need to come up with correct yes are you working i working. How many hours a week are you working? Right now I'm trying to put in 15 to 20. I'm working from like remote access and doing stuff for my dad because I will have a job secured next year afterwards too. Okay, cool. Are you living at home or are you living on the dorms? I'm living in a house in my college town.

Okay, cool. Are you paying for that out of pocket or is that inside your tuition? Yep, that's out of pocket. Okay, cool. Are you paying for that out of pocket or is that inside your tuition? Yep, that's out of pocket. Okay, cool. Great. So this is what this is. You literally have the answer to your question right there. If you're working a minimum of 15 to 20 hours, if you're just doing bare minimum wage, you can go ahead and cash flow that $6,000 because the average cost of tuition is like $10,000. That comes out to about $900 a month. So you're right around $650,000, $675,000 top end of what you need to come up with on a monthly basis

to cash flow the rest of your school experience. So if I'm you, I'm sitting down and I'm budgeting out and making sure that between myself and my family, we can come up with top end $700 a month to cash flow the next three semesters, which is $6,000. Real easy, real simple, very straight to the point. Okay. Sounds good.

There we go. Appreciate you. Man, Anthony, I love it when someone calls with a complex problem and your response is, that's not complex. You know, I was watching this thing that Cody, your brand manager gave me. He said, someone asked Dr. Phil, he said, hey man, it was Joe Rogan.

Joe Rogan asked Dr. Phil, how are you having these hard conversations? He said, no, I'm not having a hard conversation. They're asking me a hard answer and I'm just giving them a simple answer. Sometimes complicated situations. Yeah. But the answer is pretty simple.

Simple. Yeah. You know, that's simple math. Okay. You got $6,000. You got a year to three semesters. That's a year and a half to knock that out. Yeah, bro.

Listen here. That's easy. Do the math. Break it down. Break it down to per month of what you need to do. Now, if he would have told me he needs $100,000, then okay, yeah, the math doesn't make sense. So now we need to do something different.

But if all you need is $6,000, we can come up with $6,000 in three semesters. That's right. It's easy. I love it. All right, let's go to David in Indianapolis. David, what's going on? Yeah, I'm doing pretty good. Thanks for taking my call.

You got it, man. My question is, how do I handle collections before they contact me? And the reason why I have it phrased like this is because I have checked my credit report recently and I have noticed two what I believe to be medical bills stuck in collections that I have no recollection of. How do I handle that debt before I get these calls. So are you saying that you're not aware of this debt as far as it could be possibly fraud? Or are you saying, yeah, I owe it, but how do I reach out to them first? What do you say? I want to know how do I reach out to them first because I'm not sure if I'm at fault with those because it could be fraud.

I'm not 100%. Cool. So normally what happens within collections, they have 30 days. Once they acquire the account, the bill collector, they have 30 days to send you a notice letting you know that, hey, they are collecting on this medical bill. Within that time frame you have the right to dispute any charges jump on the phone with them and file a dispute or you can go if it's already on your credit report there should be a name and a number and i will just call them and say hey i see this on my credit report i'm not fully aware of this

can you help me uh understand where this is coming from and so I can backtrack and see if this is a bill of mine. If it is a bill of yours, then one of the keys, not key secrets, but the key things I tell everyone when dealing with a collection agency, don't pay within the first three weeks of the month, pay within the last five business days of the month. Because bill collectors are commissioned ran and they're, they're based salary, but they make all their money off of commissions. And so if you want to pay them within the last three to five business days i mean heck as long as you got the money you know i for me i will wait to the last business day of the month because that's when

they'll cut deals because they're trying to make their commission check um but if you don't owe it then you're not paying them nothing do you need to file a dispute with your credit repair credit report uh file a dispute with the actual company, and go from there. But the first thing is you need to reach out to him, David, and just say, hey, ma'am, sir, I see this. I need information so I can validate or non-validate this account as mine, and then from there, you move forward whichever way you need to move forward with.

Make sense? Yes. And David, this is an additional question here that I must ask him back. So when you look at your credit report, and it's got two medical debts on there, you have no recollection of going to the doctor or a surgery or some sort of... Not to my knowledge. There is a good possible chance that I have been. I just...

How would you not know if you've had a surgery? I'm not sure if it was a surgery or not. Well, David, sometimes that stuff is not from the last two months. More than likely, that medical stuff could be up to a year. Two years? It could be a long time. Yeah, it could be a long time from now. And the hospital

was trying to collect on it then they sold it to a outside collection agency so i i can't say it doesn't happen but it's not too often uh medical bills are fraud and so i would lean on the sign that side that it is yours and maybe that your health insurance provider didn't pick up that balance um and go from there but the key thing is david you know just make sure that if it is yours and maybe that your health insurance provider didn't pick up that balance and go from there. But the key thing is, David, you know, just make sure that if it is yours, take advantage of making them sweat a little bit and try and settle in full. If you can't afford to pay for it in full, the last three to five business days of the month.

Do you feel like you'll always be stuck paying off your debt? No. Anthony? No. Look at you already answering. See? Well, paying off your debt? No. Anthony? No. Look at you already answering. See? Well, I've got something for you, Anthony. If you feel like you'll never have extra money to save or spend,

I need you to know this, Anthony, and anybody listening, it doesn't have to be that way. It's time for a new way of thinking. Amen. You have to believe you can get rid of this and take control of your money because you can, and it won't take control of your money because you can. And it won't take nearly as long as you think it will. With Ramsey Plus, we'll kick off 90 days of guided help so you can put more of your money back in your bank account.

In the Ramsey Plus program, Anthony's got a ton of information. I've got stuff in there. Our friends Ken and Chris and Rachel, Dave, everybody's got cool stuff in there to walk alongside you to teach you practical ways to get small, consistent wins that add up to big results and better habits. That means you'll get

where you want to be faster. Debt free and spending your money without worry. This year, you can make more progress on your debt and saving more than you ever have. Get Ramsey Plus and start living the life you want faster. Start Ramsey Plus for free. Text TRIAL to 33789.

That's TRIAL to 33789. Anthony, someone's thinking, what would somebody do in Ramsey Plus? Talk to them about stuff you've got in that program. Well, for me, man, I'm actually answering a lot of the most common questions. That's what I'm doing in there. It's because I'm taking myself back down to the average person in America. And sometimes when you get in a program like this, Financial Peace University, you have some questions about this, about, OK, credit cards, debit cards, getting finance. So for me, I'm bringing solid solutions and answers to the most common questions.

And I love it. So that's what I would say I'm bringing to it. And it's amazing. It changed my life and it can it can change yours remember the caliber of your future will be determined by the choices you made today make the right choice and sign up for Ramsey Plus this is the Dave Ramsey Show Today's scripture of the day is John 14, 26. But the Helper, the Holy Spirit, whom the Father will send in my name, He will teach you all things and bring you your remembrance, all that I have said to you. Lou Holt says, it's not the load that breaks you down, it's the way you carry it.

It's not the load that breaks you down. It's the way you carry it. It's not the load that breaks you down. It's the way you carry it. Lou Holtz is one of a kind, man. He's a general, brother. One of a kind. All right, let's go to Christopher in Cincinnati, Ohio. Christopher, what's going on? How can we help?

Hey, how's it going? Thanks for having me. You got it. What's going on? Hey, you know, my wife and I, we've been listening to your show here for a while now, and we actually have been fortunate enough to pay off all of our credit card debt. Congratulations, man. Appreciate that. Thank you.

Yeah, you know, it doesn't happen overnight. You know, it took a few years to save up, but, you know, now that we have that big chunk paid off and, you know, listening to your show, you know, you guys talk about saving for a nest egg. What is that right number to save for a nest egg? And can you break that up into like a long-term savings with investments or would you recommend, you know, saving that nest egg in cash? We just started budgeting in January going forward to like track all of our spending and really look forward to, you know, continuing to build our savings and just investing for our future. Yeah.

And we just want to know what the best move would be. Like, should we, should we, you know, not to wait the student loan debt? Should we not to wait at the home or should we just, you know, save it all in cash? Yeah. Good question. Good question, Christopher. So here's the thing, man. We have the first three baby steps is something that I want you to follow in order. We don't break these for nothing. So right now, you should have $1,000 in your emergency fund nest egg right now.

Okay? We got over that. We got over that. How much do you have in your nest egg right now? Well, so we have about a little, you know, as of close market yesterday about 5800 in the market and mutual funds um we got about 3000 in cash okay cool so you got three thousand dollars in cash okay crew you got fifteen hundred dollars in your mutual funds all right cool great so this means three thousand dollars in cash now how much total consumer debt do you have left uh left over excluding your mortgage none well you just i

thought you just said you have some credit cards or something like that student loans student loans oh student loans yes we have about 30 000 together yeah yeah so consumer debt let me let me help you out with this anytime we say consumer debt that is anything if you owe anybody anything that is debt including your mortgage okay so student loans are still debt so i want to make sure we're clear you have student loans you don't have any credit cards do you or do you no okay cool do you have a car payment we paid them off okay cool great so so right now you're in baby step number two all right you're paying off all of your student loans.

You're not waiting for the government to see what they're going to do. See if they're going to forgive. If they're going to forgive, the most they're going to forgive right now is from what I'm seeing, if it happens, about $10,000 to $15,000. Okay. So right now you're in baby step number two. You're paying off all of the student loans. You're not really worried about having a bigger nest egg right now. I want you

to focus on getting out of all of your debt completely. Then we're going to go over to babysit number three and set aside three to six months for a fully funded emergency fund, aka a fully funded nest egg. So three to six months of expenses. So you're going to break down your expenses based upon what do you need to live, you know, your mortgage payment, your rent payment, your utilities, your food, you name it. What do you need to live? That's what we call expenses. But right now, you're not worried about that. You're not worried about investing into a mutual fund. You're not worried about investing into a Roth IRA and a 401k. Right now, you're sitting in baby set number two.

You're going to get those student loans. You're going to break it down from smallest to largest. Then you're going to be attacking it, the very first one, the smallest one, putting all of your eggs onto that one. You're going to work the debt snowball to that method, all right? So you got $3,000. I'm taking $2,000 out, putting that on top of the $30,000. I'm down to $28,000. And then I'm grinding to get the twenty eight thousand dollars out of the way by

the end of this year then boom next year me and my wife were debt free we're going to get a fully funded emergency fund then we're looking to purchase a home so that's what i recommend man and i appreciate you calling in and you know what's so funny is john um harvard just recently came out with a study uh saying that the that these harvard professors you know what's so funny is, John, Harvard just recently came out with a study saying that these Harvard professors, you know, every now and then I tend to disagree with them. But on this one right here, they hit this one on the head. They hit this one on the head. All these high-end people like you, all these doctors and people like you, educated people, actually nailed this one on the head, John. Every once in a while.

Every now and then. And they said that the best way to pay off your debt is by what the debt snowball method not the avalanche avalanche method paying off highest interest down to the smallest one they said the best way to attack your debt harvard said it is a debt snowball and they i think i think they listened to us bro i think that's what it was it was listening to me and dave not you because you adopted too and they was listening to me and dave who are not doctors and they heard us say that this is not a math problem you need momentum you need excitement you need energy you need to trick your brain and it's i was like yo

harvard okay if i go back to school i may consider. And then I woke up and said, I ain't going to Harvard. Because that's, man, sometimes I'm sitting on the radio and Anthony just tosses me softball after softball and you just got to let him go by. Yes. Go by. You can't swing it. None of them, man. I mean, you're the doctor. You know what I'm saying?

You know, so you educate it. The hardest thing, listen, I spent some time at a small program for a few weeks there at Harvard. Can I tell you the most frustrating part? What was it? I wanted so badly, Anthony. I wanted so badly for Harvard to be this big media fabrication. I was going to get there. I already had my Ph.D.

I was going to be like, man, we're all same team, same team. Man, Anthony. Hey, hey. They were real smart is all I same team. Man, Anthony. Hey, hey. They were real smart, is all I'm saying. Listen, man. They were real smart. I remember sitting there going. You know I got invited.

I got smarter than me. She's smarter than me. She's smarter than me. See, see. I don't know. But you know, I'm going to say the name of the school because I don't want to be disrespectful. And I may end up going there. I don't know.

But you know, there was a big Ivy League school that offered you know, offer me a full ride to finish my degree. No chance that happened. But go ahead. Yeah. No chance that is going to happen. I'm not going to say zero. I mean, I may go back. I mean, because I believe education is important. But one of the main reasons why I said no is because I don't want that on top of me. You know, I'm teaching young people to go to any school that you can afford. An Ivy League school is not that important. Is it a great opportunity? Yes. But just because you graduate from Harvard and these other Ivy League schools

doesn't make you any, it will not make you any better than going to a community college. Because I know a lot of people who went to prestigious schools, but they're not prestigious individuals. And I know people who started off at a community college,

graduated from an in-state school or went to trade school or went to seminary school and they came out more prestigious than people who went to prestigious schools so i just want to put that out there you know for all the people but i i want to give harvard their love and their credit i'll say this i've got two doctorates if any ivy league school wants to pay me to get another one, I'm happy to sign up today. But Anthony? If any in-state school wants to give me a full ride, I'll sign up today. I'll put it out there. If any in-state,

local in-state school in Tennessee wants to give me a full ride, I'll go. Any HBCU wants to give me a full ride, I'll sign up today. Ivy League's, ah. That's where we're different. Alright, so, hey, listen. That last caller had an important call out here, and I've heard this.

I've been working with college students for years. I know you've heard this. Tell me you don't continue to hear this, man. I've got debt, but that's not student loans because they don't count. Student loans is not debt, only credit cards and what I owe mom and maybe some medical stuff. But student loans don't count as debt. It's not real. And that's because society says that Student loans is not debt. Only credit cards and what I owe mom and maybe some medical stuff. But student loans don't count as debt. It's not real.

And that's because society says that student loans is good debt. Mortgages are good debt. And our philosophy here is debt is debt. We don't believe in the term good debt or bad debt. We just believe in a term debt is debt. And the only debt we are okay with having is a 15-year fixed rate mortgage. But a student loan debt is still debt you're still paying interest it is the number two crisis in america right now people have a mortgage payment but don't own any freaking real estate that is that is debt how is it you owe a

hundred two hundred thousand dollars in in debt and you're saying this is not debt? No, this is debt. Okay? So listen, debt is debt. Pay it off. Debt is debt. Debt is debt. Say goodbye to debt and never see her again or see him again,

however you want to phrase it. I want to thank Kelly and James for quarterbacking a great show today. Anthony. I want to thank Kelly for giving away all of your event tickets. Thank you, Kelly, for... He was working you today in that area. Hey, join us for the Marriage and Money event. Anthony, it's always fun.

America, thanks for joining us. Have a good week, good weekend. Be kind to one another. This is The Dave Ramsey Show. This is James Childs, producer of The Dave Ramsey Show.