The Ramsey Show - App - How Do I Save for My Kid's Education? (Hour 2)

Episode Date: September 17, 2020

Savings, Education, Debt, Retirement, Insurance Tools to get you started:  Debt Calculator: http://bit.ly/2QIoSPV Insurance Coverage Checkup: http://bit.ly/2BrqEuo Complete Guide to Budgeting: http://bit.ly/2QEyonc Interview Guide: http://bit.ly/2BuGnZE Check out other podcasts in the Ramsey Network: http://bit.ly/2JgzaQR 

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 life and your money and even your career. I'm Chris Hogan, and hosting along with me is Ramsey personality and best-selling author and host of The Ken Coleman Show, Mr. Ken Coleman. And I'm excited to be with you, and we are ready to take your questions. Believe me, we are wide awoke and ready to go. Coleman, are you good? I am better than good. I'm excited.

We've had a good day so far. You're doing your thing. I'm doing my thing. But when we get to talk to people and coach people, see, both you and I, we love coaching. We do, man. And I'll tell you what. We also love people. And not being able to travel and speak.

I know. Not being able to get out to see the audience and to watch interactions. That's why we love these people out here in the lobby. Love seeing y'all. We do. I'm telling you, it's good. Great group of people. You help my heart.

But we miss it. And so, Ken and I have been regulated to doing webinars. I know. And so doing these- How bad do you want to get out and speak in 2021? I really do. But listen, we're grateful for the webinars. Oh, sure.

We're grateful for people that are calling in where we're getting a chance to help companies, help their team members and things of that nature. And you've got a great opportunity. We're coming back. We are coming back. We'll be back out on the road so that's what I was going to say so if you're out there and you know you've got an event planning in 2021 I want you to reach out go to Ken Coleman calm you can look at about bringing Ken to your

company or event or go to Chris Hogan 360.com about bringing me to your event go ahead and let's get the calendar full now okay let's go ahead and get this thing started because it gives gives ken and i something excited to look forward to well yeah we love people we love getting out there and i guess it's going to be all fist bumps and elbow bumps hey listen i'm doing all the things i'm a hug i'm gonna even twirl people around i'm in for the hug i'm gonna be so happy i am too i'm grabbing a grown man and just twirling him around well no no be careful chris because you grabbing a grown man and twirling him around is very different than if I do it.

You could spin somebody off into a wall and create medical bills. I don't want to do it like a discus. I'll hold on to it. Let's stick to phone calls. All right. That's fine. All right. So for today, all we got is the phone, so let's make it happen.

I need Kelly's hair on fire. Call in. Let's light up this board. Here is the number, people. Some of you have never called in. You have listened to the show, and you might be intimidated of Dave. That's fine. He's old, and he's intimidating. But here's the deal. Coleman and I are young, so I want you to call. 888-825-5225. I'm going to scoot over here. That's 888-825-5225. Call us. We'd love to hear from you. All right, we're getting to the phone. We've got Kevin down in Dallas.

Everything's good in Texas. How are you, my friend? Yeah, that's right. Hey, I'm doing well, guys. Thanks for taking my call. Yeah, buddy. What's on your mind today? Hey, so I am planning on having a kid soon with my wife.

We got married about a year and a half ago, and we're looking through our budget and want to think through how best to begin saving for college for potential future kids. So I did a little research, but I want to talk this over with you. From my knowledge, you can put money in a Roth IRA and then use it for education expenses in the future with that tax sheltered benefit. And to me, I'm thinking that's a better route than starting a 529 or even an ESA because of the penalties if you don't use it for education. And with the fact that we don't even have a kid yet and not sure if that kid will go to college in the future, I'm thinking a Roth IRA might be the best and then we can use it for retirement later if we don't end up using it. So we hope we will get to use it.

Right. No, Kevin, I – I just wanted to pick your brain on that. Yeah. No, I understand it. And congratulations. So you guys are – are you out of debt yet? Yeah. We have a mortgage, which I don't like, but we are out of debt. That's awesome. Well, in looking at this, you're right. As you begin to look at options of, A, putting aside money, allowing it to be able to grow.

But let me caution you. As you guys are looking and you're looking to build, yes, the Roth is an option there that you could look at. But a friend of mine did that very thing, and he can't bring himself to take the money out now, okay? He sees the growth. He sees the compound growth. And so, just FYI, if you're going to earmark it for that, looking at the ESA is an option. You can do up to $2,000 a year. Avoid the 529s that are state-directed.

I don't like those because they're picking what you invest in, and they're in control of it. You don't have anybody in control of your money. If you're going to pick a 529, pick one that allows you to invest in gross stock mutual funds, here's the benefit of the 529. You can put in as much as you want. There's not a limit. You can only do $2,000 a year on an ESA. A 529, you can do lump sums, chunks and things of that nature, but you can also pass it along. Okay. So you got options. Again, the Roth, you could look at that as the option for you, but just be aware, right? And again, based on income status and where you are, you could do the 2000 a year in the ESA plus the Roth and allow yourself to continue to build and give yourself some options. Now, just because they may not use it for college doesn't mean they couldn't use it

for grad school or for other technical training. So you have some options. But I love that your heart, Kevin, is in that spot. As you get ready to have the first kid, I want to tell you, go take a nap, right? You need to just go lay down right now. Just start storing up sleep. It's so true. Because your body is about to be more tired than you can imagine.

You're going to start hallucinating about naps. Yeah. And then you get in our stage. So, Chris, our kids are all about the same age. They're all like right there. And I'm going to tell you, the physical tiredness kind of goes away. But then it gets replaced by mental and emotional exhaustion.

Yes, and wallet tiredness. Wallet exhaustion. Buying food. Oh, boy. Hungry and hormonal. Boy. That's what teenagers are. You got three boys.

I got two boys, all in the middle school and higher, and I might as well buy stock. I know Dave's not for it, but if I'm going to do it, it's got to be Costco, just for the bulk food. I bought a whole cow the other day. Yeah. God, just knock the horns off of it. But here's the deal. You got to get prepared. And I love, Kevin, that you're thinking about it. You guys looking at it, start to talk about, hey, are we looking at growing the family? And if you do, you can open another. And the good thing is

it allows other family members to be able to contribute to it as well, my friend. Thank you for calling in. All right. I want to let you know, as you look at this, we are always looking for your input. And we want your feedback. And we value you as a listener of The Dave Ramsey Show. It helps us to know what's important to you so we can deliver the right kind of content and teaching. And we've launched a brand new survey and would love your feedback. Check it out at DaveRamsey.com slash survey. It's only going to take you a couple of minutes,

and there's a $100 Amazon gift card up for grabs, which is always a positive. So you can text the word survey to 33789 or visit DaveRamsey.com slash survey. Again, you can take it with your phone. Just text the word survey to 33789 or visit DaveRamsey.com slash survey. Again, you can take it with your phone. Just text the word survey to 33789 or visit DaveRamsay.com slash survey. And I want to give your feedback about how much you enjoy Ken and I when we host the show

together. And that's, you know, one of your top preferences. We would love to hear that information. Wow. You're very frisky today. You called Dave old earlier and now you're telling people to take the survey and tell us how much they love you and I. And I just want everybody to understand that it was Chris that said that Dave was old,

and it is Chris that is bargaining for your approval. Can you repeat it a couple more times just to make sure you throw me all the way under the bus? Well, I just need people to be clear what you're saying and what I'm not saying. Goodness gracious, boy. Yeah. Careful, Chris. Careful. Where did they say keep your friends close and what? Closer? This is the Dave Ramsey Show. Folks, I love telling you about well-made, well-thought-out products. Today, I'm talking about Grip6 belts. I don't know about you, but I'm not a fan of traditional belts. They never fit right, and they're uncomfortable. Grip 6 belts are unique. Owner BJ designed a truly modern, minimalist belt made of high-quality materials with no holes, no flap, and no bulk. And the

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That's GRIP6.com. Welcome back to the Dave Ramsey Show. I'm Chris Hogan, and hosting along with me is bestselling author Ken Coleman. We have taken over this show, this hour, and diving in and taking your questions about career as well as money. And so I want you to help us get these phone lines buzzing. The number to call is 888-825-5225. Again, that's 888-825-5225. But don't forget, you can also find us at Ramsey Show on social.

Okay? You can send in questions. And we've got the YouTube channel that are plugged into the Dave Ramsey Show live, which is great. I love their support. And you can find Ken Coleman at Ken Coleman. You can find me at ChrisHogan360. We'd love to help. So, all right, let's get to the phones.

Let's go out to the desert. Let's go out to the desert. I've got Rick on the line. Rick, how are you? I'm doing fine. How about yourself? Oh, I'm focused and not finished, my friend. What's on your mind?

Well, first off, I want to say thank you my wife and i lost our farm uh probably half a million dollars thousand eight and we had debt beyond belief And I eventually ended up with $250,000 worth of debt. And we paid that off in five years based on your approach. And now we're set debt where we got about $5,500 a month discretionary spending. Okay. Like, I don't know what to do with the money. Okay. All right. This is a good problem to have, Rick.

So the debt is all gone. All gone. And what was the total amount you all paid off again? $250,000. Easy. $250,000. What's your household income it was less than 100k how did you do that we put you ain't gonna believe it we went to walmart got some poster boards and set it up every month and put it following your approach uh this is what we got and what we got left is what we

lived on which was rice and beans yes wow you guys made the ultimate sacrifice so he's asking what do i do what do i do so the question is rick what do you want to do what have you always wanted to do and that you just never thought was even possible, and now you realize it is possible? Well, first off, my wife was actually back then was working three jobs at a time. I was working two, and I mean, I worked 11 days straight with a day off and went back to work. And now I don't know.

Now we sleep beyond belief. We have financial peace, if you could believe that. Yes. It is completely different. Now I don't know. The best I can do is get like American Express 1.75 interest, and I don't know what to do with the rest of the money. We've got 75K in savings.

Wait, hold on. Hold on. Wait but i'm very confused what are you talking about with american express back up say that part again they've got uh a program where uh they're paying 1.75 percent interest on our money it's like a bank but uh oh okay yeah i don't like that so are you trying to figure out what it is so are you trying to figure out how to invest your money are you trying to figure out what to do with the rest of your life i'm 62 she's 59 okay i got it we're trying to figure out where do we put this money how much do you have put away for retirement right now, Rick?

Actually, we've got two Social Securities, two military retirements, and she has a state retirement. So $75,000, and everything's paid for. Okay. So here's what I would do. You've got this. You're at the point now that you're debt-free, and you want to be intentional. So I think it's imperative I would look at your military pension, I would look at her pension, and really start to understand the total amount coming in, but then also the nest egg,

meaning you want to invest. You want to keep growing that money, but at the same time, you can also increase lifestyle. That means you all start to travel. You start to do some things. Do some giving for charities that you believe in. Giving to your local church. Giving anonymously. You know, as you all go out to eat, leave the waiter or waitress an incredible tip.

Begin to enjoy. That's what I'm saying. You've gotten this stuff to this point. And, Ken, people tend to struggle when they get here because they've worked hard to get out of debt. And now it says all of a sudden, okay, well, what do I do? And they struggle to allow themselves to have fun. Yeah, it's a shift. So there's this unbelievable focus that keeps you down. And you've got those blinders on.

And it's a wonderful, powerful thing. And then you get there. You celebrate it. You sleep really well. And then you wake up and you go, I've been attack mode get after it for so long and i don't have an immediate object to attack and so i would work in something here chris you gave great advice here chris is going to give you always great advice on investing but i would tell you that now you can truly give like no one else as dave says live and. So that investing strategy needs to be very solid.

However, who are the people you've always wanted to help? What are the problems that you have always gotten excited about solving? What are the solutions that you want to be a part of? I would look for those in your zip code. I'd get your eyes up now and start to look for opportunities to be a blessing. And because you've got the financial freedom and wherewithal to do that, that can give you some real juice in this next season of life. So look for those people you want to help, the problem you want to solve, the solution

that you want to provide. I like that a lot. And making that list. And Rick, you and your wife sitting down and start to make the list. What are the charities we want to give to? What are the places we want to travel to? And begin to kind of dream again. make the list. What are the charities we want to give to? What are the places we want to travel to? And begin to kind of dream again. I think that's that dream meeting I talk about,

and it's important to have that at every stage and phase. So you got some guidance there. You want to continue, increase lifestyle, have some fun, be able to kind of continue to invest and grow the money, but also giving some away. Those are three great things that you can do. And really for anyone out there, once you get yourself out of debt and you've got yourself on the money, but also giving some away. Those are three great things that you can do. And really, for anyone out there, once you get yourself out of debt and you've got yourself on the path, you can begin to kind of think, hey, what's next and what are we trying to accomplish? And so you don't want to lose sight of that dream. All right, let's see here. Oh, let's get to line four. We've got Donna on the line. Donna, how can we help you? Hi, Chris. I am currently living in Wichita, and my mom's in hospice. Oh, I'm sorry. And I'm her trustee and executress.

Yes, ma'am. Thank you. And I've been caring for her and various family members basically my whole life. So I'm getting ready to move once she's gone, and I've got the bulk of her estate handled out of state several you know several states away to my dream home okay I'm on baby step three I just have mortgage to pay now and I'm about halfway I, through the three months to six months. Yes, ma'am. Good. Okay.

And my question is, I have her home and two rentals that will be in the family, that are family rentals. And my brothers want the money. They don't want me to keep it in rentals, and they might even take me to court in the process. My parents want me to keep the money. Well, my dad's gone, but my mom and dad both wanted me to keep the rentals. And after expenses, I get 80% because I've been the one that's always been there to help them, and then my brothers would get 10% each.

But since I'm moving away, part of me says, you know, I could put it with a property manager and have it dealt with. Right. We're talking about $310,000 of value for all three homes. Okay. So it's not like it's a huge amount. Okay. Yeah. Hold on, though.

But you walk away with 80% of that $310,10, correct, if that's what you get for them? Well, no. If I sell them, I only get 33%. Ah, okay. Okay. Got it. Because they're split three ways. Okay.

Got it. Gotcha. And I'm just wondering, I've always tried to play nice with my brothers, but unfortunately, they don't do the same. Yes, ma'am. And they've always resented me. I came along when they were older kids. I was adopted.

And they said, well, life was good before she came along. Ah, okay. So they've always resented me. Donna, do me a favor. We're going to take a break. I want you to hold on. Yeah. We're going to come back, and we're going to unpack this thing and dive into it.

There's a lot going on here. You've got family dynamics. You've got honoring her mother. What does Donna need to do? We're going to unpack it and talk about it when we come back. This is The Dave Ramsey Show. Hey, guys. At the Dave Ramsey Show, we really value your input. It helps us to know what's important to you so we can deliver relevant content to help you crush your money goals.

We just launched a brand-new survey, and we'd love your feedback. It only takes a few minutes, and you'll be entered to win a $100 Amazon gift card. No purchase necessary. Take the survey at DaveRamsey.com slash survey or text survey to 33789. Hello, everyone. This is the Dave Ramsey Show. And before we went to break, we were talking with Donna. And Donna has had some serious family situations. Her mom is ill in hospice.

She is in the process of right now trying to, uh, walk through the process with what her mom is going through, but also the rental properties. And, uh, Donna was telling us that if she keeps them and rents them out, she gets to keep 80% of the rent. Uh, 10% goes to each of the brothers, but if she sells them, then they're going to be splitting things, uh, in essentially thirds. And Donna, I know this is a tough spot for you, but I think the big thing is your brothers have already kind of made it known

that they plan to be legal. They plan to cause drama and irritation and frustration. And I think that you, looking at your situation, you want to do the thing that's definitive, that clears the path for you to be able to move forward with your goal. Yeah, listen, I think you sell. I think you take that money. definitive that clears the path for you to be able to move forward with your goal yeah i listen this is i think you sell i think you take that money what you're going to make and i think you put it towards your baby steps you're going to cruise right through baby step three and four and you

get get going and you get that down payment and you move forward no more anguish no more pain over the situation and i don't think that in any way, given the conflict that you're facing, that you're dishonoring your mom and dad's wishes on these properties. Yeah, not at all. And I think you go ahead so you can move forward in life and not have that headache. The last thing you want to do is what would have been $102,000 come in your way, have $50,000 of that go into legal fees. It it's not necessary and i think it's a matter of you being clear with that sitting down talking to an attorney being clear about the sale and the process so you can move forward donna thank you for the call yeah all right listen we're back here and we have a guest standing on the stage

and they're not standing there just to look good right right? There's a reason. Zagar, how are you? Good. How are you, Chris? Doing soccer. I'm sorry. How are you? How much debt did you pay off? I paid off $175,000.

And how long? 21 months. What did you sell? I didn't sell anything. You didn't sell a thing? No. I graduated from grad school. I'm a physician assistant in emergency medicine. And I just started working and picking up a ton of jobs.

And it's amazing. So what kind of debt was the $175,000? Believe it or not, all graduate student loans. Wow. What did you make when you came out? So I started at about a rate of $110 Okay. And then last year, about 190. Okay. Okay. And you just went after it. Yeah, yeah. I threw my mattress on the ground in my parents' extra bedroom, and I work.

You went back home. I did. Now, but see, I like this, Chris, because he went home on purpose. Look, there's a picture. That's right. That's it right there on the video channel. If you're watching the YouTube channel, oh, my goodness. That's the first time I made my bed.

That's called motivation. Yeah the video channel. If you're watching the YouTube channel, oh, my goodness. First time I made my bed. That's called motivation. You were serious about this. Yeah, I mean, I'm a first-generation American. My parents, you know, weren't terribly well-educated, worked in factories when coming to this country. So, you know, like Dave says, you want to change your family tree. I'm hoping to, you know, be the backbone for the rest of my family to come. So that was a big deal for me. That is unbelievable. And so as you look back on this, what was the timeframe you had in your mind? So as soon as possible. So, you know, what

originally actually happened was, you know, after just electronically signing into all these student loans during grad school for three years, One of the last lectures that we had, we had a guest speaker come in, third party counseling us in that, hey, in 25 years as a healthcare professional, you can have your loans forgiven. Or in the public sector, 10 years and you can have your loans forgiven. I'm the type of guy who I can't really sign a one-year gym membership without thinking about it for a week. So I couldn't see myself being tied to student loans for that long. That's amazing i mean that you made that shift and so you sacrificed a lot didn't you i mean you sacrificed freedom freedom little mental sanity maybe living back home i was actually out in northern california and i moved back to connecticut to be with my

family wow unbelievable so what are some of the other sacrifices that day to day? So here you are, this young guy, and you're right out of school. You're busting it. And then what did you not do? So, you know, I tried to work around all the opportunities that I had. For example, in medicine, you have to do continuing education. And I would use that as a vacation. Or, you know, I would stick to the envelope system.

And if I was out of my fund budget, fun budget, I wouldn't really have any fun. Right. But I think I did okay. And 21 months seemed like forever. But I'm glad it's out of the way. How long ago did you pay the last payment? About two or three months ago. What did that feel like?

It felt great. I want to move towards the next goal. I'm happy that there's not something sucking, you know, my income from here on out. So I just finished Baby Step, you know, I'm on four, five and six. I'm like flirting with 3B, but I'm taking the next like six months to figure out what I want to do in the future. That is fantastic, man. I mean, seriously, you paid a serious price to be able to get to this point, and I'm glad to hear that you're enjoying it. Talk to these young people out here that have these student loans. What do they need to do?

Give them some encouragement. Yeah, so especially folks that are becoming nurses, physician assistants like myself, doctors, APRNs, things of that nature. We're so grateful of getting into school. We're so grateful of passing our boards,, we don't really think about the future. We just accept the tuition and room and board or whatever it is. Um, if we take a minute to just focus on the future, we can really just put our shoulder down and get through this and, you know, not have to come out of school slaving away, um, without being able to enjoy like what we were meant to do for our lives.

So that's fantastic, buddy. Did you have any cheerleaders along the way? Yeah. You know, my friends and family have been great. They were all with open ears, listening to my goals and, you know, not having any qualms about it. They were great in supporting me. And we're just like rooting me on the entire time. I have a picture of my grandmother somewhere. Dave says rice and beans and sacrifices,

but she's the type of person who would cater for home-cooked meals a day for me if I asked for it. That's love right there. All right, Sager. You paid off soccer. I can't get that right. I'm so excited. You paid off $175,000 in 21 months. Earned income level between $110,000 and $190,000. Even moved back home so he could get serious about this thing. Count it down. Let's hear a debt-free scream. All right.

Three, two, one. I'm debt-free! Fantastic. Great job. Very proud of you. Very proud of the sacrifice and the intentionality. And here's the deal. I have no doubt you're going to continue down this path.

You're going to get a copy of my book, Everyday Millionaires, how ordinary people built extraordinary wealth and how you can too. Because with your kind of focus, income level, being out of debt, you are going to do this, my friend. So proud of you, proud of the legacy you're starting for yourself and your family, and very excited. Boy, it's not an accident you do that kind of debt in that amount of time you're intentional well you know i i you know the discipline that he had is impressive but i will tell you the thing that that that impresses me the most about um soccer is he uprooted his whole life at a young age coming right out of school he has everything

going for him all right and he's got this opportunity to kind of I get to be an adult and I get to kind of do this thing and yet he goes you know what I'm going to press pause on all that I'm going to think about my future and so he decides to leave his community his area which is hard for a young person. It's hard for anybody. And he goes back to live at home. He showed us the picture. We showed it on the YouTube channel where he's just on a mattress, and he's just working, and he's sacrificing. And yet, as we look at him, he's now way ahead.

I mean, light years ahead of probably, I'm making this up, but it's probably at least 90% of the people he graduated with. Oh, 98, 99%. He's still out there. Is that about right? Is that percentage about right? He doesn't have a sense of it. I know he doesn't have it on, but is that a yes or a no?

I mean, most of the people you graduated with are way behind. They're in debt, and they're just trying to figure it all out. And he's got the rest of his life where it's wide open. You heard him say, I'm trying to figure out what it looks like next. And I'll tell you what it looks like. It's super exciting because he's got the discipline now to never get in debt again. He's got the experience of walking through a really difficult challenge and coming out on the other side. That's what's exciting. Yeah. No, he's got options in front of him. And as you look at this, what you realize is that getting out of debt, what it does is it paves the way. And so it's going to require some sacrifice. You're going

to give up some stuff. But what you have in front, what you gain after is a whole lot bigger. It's not an accident getting out of debt. It's about momentum. And it's about your heart and your drive. This is The Dave Ramsey Show. you are listening to the Dave Ramsey Show. I'm Chris Hogan, and hosting along with me is Ken Coleman, and we have had a blast. We had some amazing debt-free screens already, and again, this last gentleman, so intentional, paid off $175,000 in 21 months. It's not an accident. It's called being focused and definitely not finished

and very, very proud of that young man. If you're out there and you know you're on your debt-free journey, we want to hear from you. We want to see you. And the best way is give us a call. That number to call is 888-825-5225. You can get your question answered today. We'd love to hear from you. All right, we're going to get back to the phones. We've got George on the line. George, how can Ken and I help you? George? Hello.

Hello, George. How can we help you, buddy? Oh, hey. I wanted to make a new car purchase. And I know you guys typically, I'm just trying to follow guidelines properly. And I know we look down upon buying a new car, but, you know, working baby step four, five, and six, no problem. Everything's set up. The new car is about $41,000.

I want to pay cash. The issue is if I buy a used car of that model, they're like $5,000, $6,000 less, and it's already got 50,000 miles on it, and it's about three years old. So are used cars just, I mean, a new car just completely toast there, or what do you think? Well, what's your household income, George? About $220,000. Okay. And what debts do you owe on? Just a mortgage. We have $200,000 left on,000. Okay. And what debts do you owe on? Just the mortgage.

We have $200,000 left on the mortgage. Okay. We've been putting about $10,000 a month on the mortgage, so we were just going to pause the mortgage side a little bit, save up for this car, but still do the retirement and the college fund. Okay. So tell me this. How much are you thinking of spending on a car?

It's about $40,000. $40,000. What kind of car is it, George? It's a 2021 4Runner, Army green, real sweet thing, man, real nice car. I know. Yeah, but here's the thing, Chris. So if he gets a used model of that, okay, and he's seen one, I think you're quoting us some real stats, right? A car that's three years old versus new, and it's got one i think you're quoting us some real stats right a car

that's three years old versus new and it's got 50 000 miles on it right that's what you're talking about it's like five thousand dollars less in that case yes it's not that big of a jump it's not it's not however uh the depreciation happens really really quick but if he saves up the money on this one ch Chris, I think this is interesting. It is. And what is your net worth, George? We're at $420 right now.

I did your net worth calculator. Okay. Most of that's equity. Some of it's equity in the home, and then we've got like $230 in retirement account right now, and I'm 30 i'm 35 okay and is it is it this vehicle and this color that's got you so excited you know what yeah it's like it's like this i've been disciplined we have as a family been very disciplined and so there's not that's not the issue but yeah we're getting into this it's scary

because i'm touching into this ground of like, oh, man, I love this car, and I'm feeling the pull of it, but I'm just not sure if it's the right thing. But yeah, it's this vehicle, this color. I got you. Hey, tell me this. How long have you been feeling the tug of this vehicle? Well, you see, my wife set up with a real nice vehicle. Both of my cars, recreational vehicles and work, have like 200,000 on them.

Okay. So in probably the last six months, I do. Okay. All right. Because I can hear it in your voice that it's not something you just stumbled upon yesterday, that this is something you're really looking at. And here's what I'm going to tell you. You know, you guys have been very intentional with attacking the mortgage.

I'm not buying a new car yet. Like, I just wouldn't. I'm going to the mortgage. I'm not buying a new car yet. Like, I just wouldn't. I'm going to save up. I'm going to try to find one. And if it's the color you're really in love with, look at getting a used one. And what's the paint going to cost? Like, you know, it's weird. And I think you said something else, too, that kind of cracks the door on this.

Your wife is set up with a good car. Both of yours are older, 200,000. And so there's a little blend of this deserve mentality in there along the lines of you really and truly acknowledging that you like it and appreciate it. I'm going to encourage you to save up cash toward it. I'm going to still advise you to try to find a used model of this thing and enjoy the the vehicle enjoy something that doesn't have 200 000 miles on it that's my take all right uh i was waiting for you you are the financial guy on this one i wanted to see what you were going to say i like the 20 000 choice instead of 40 yeah because he can save that up really quick they're putting 10 grand extra a month on the mortgage.

Oh, yeah. So I do think that he should get a nicer car. He's been going at it for a long time. He's been disciplined. So I'm saying this is an idea, George. I'm not saying this is what you should do. This is the idea. I think you find something.

You like that. I think you said it was a Toyota 4Runner or something like that. It is. It is. I would find a comparable type of SUV. It could be in that same brand or whatever. But I like your idea, and I've just renovated a car. I've still got a little bit of renovations to go.

I like getting a really good, dependable $20,000 SUV that you feel really good about. Maybe you put a little extra money into making that paint job the same color that you really like. Maybe you take $5,000 and spruce it up a little extra money into making that paint job the same color that you really like. Maybe you take five grand and spruce it up a little bit. Now you're not dealing with depreciation that you would if you buy that brand new $41,000 car. The bottom line is that's too much right now given the situation. You and I agree on that. We really do. But I think you can have a lot of fun in that $20,000 to $25,000 range.

I agree. I mean, imagine finding a 2017 or 2015 model. You find out that color, that spec, and find out, hey, what would it cost to paint a vehicle? Put some big old wheels on it. Put some lifted up. Put some stuff. I mean, but again, what we're doing is looking at this, George, and helping you have a car that's new to you.

Yes. And I think that's the thing that your heart will feel good about. And again, guess what you can do? You bought that one with cash. Let's start to set some money aside in the budget for car replacement. And in three years, guess what? Two years, you sell that one and maybe you upgrade again. But it's that mindset of walking slow, not trying to sprint.

Thank you for your call, my friend. All right, let's stick to the phone here. We've got Jason on the line. Jason, how can we help you? Hey, Chris, how are you today? sprint thank you for your call my friend uh all right let's get stick to the phone here uh we've got uh jason on the line jason how can we help you hey chris how are you today good my friend how are you i'm doing great big fan of the books man i appreciate everything you guys do well thank you my friend what's on your mind well i've been trying to figure out what to do with some excess savings and um just had a little grill so my wife and I are looking for a new house right now, which kind of complicates things a little.

But I'm looking at some different options, and I've, you know, I listened to Dave. I got term life once we had the kid. I totally got the difference between whole life and term. It made total sense to go the term route. But then I got connected with this financial advisor who was, you know, making me look at whole a little bit different as more of an investment where you're moving money from, you know, say a standard savings account

that's making a small interest rate to, you know, a whole life policy and using it to earn dividends. And eventually the dividends start outarning what you put into it, kind of on autopilot, but it takes a couple years to get to that point. Let me ask you this, Jason. What's the goal of your money? What are you trying to do with it? Well, we're not in the right school system neighborhood-wise,

so I'm trying to upgrade the house. We need a little more space. We're trying to get a better neighborhood for when our daughter starts school. We have a couple years on our side for that. So, you know, watching this money sit in a savings account and, you know, the rate went down to like.9 before taxes. So it's like just watching it sit there, do nothing is tough. Well, it sounds like to me. I'm trying to look for a safe way to earn a little bit more.

Well, it sounds like to me that you guys may be moving. And so, you know, here's the thing. With any kind of investment, I tell people, don't try to get cute. Let's be real. And with that meaning that I want to invest in things that are going to help me grow my money over time. And we know investing is five years or longer, being hyperintentional and being very, very focused with it. And so I'm not going to play around with the whole life stuff. I want my investments to be investments.

I want my savings to be savings and I want my insurance to be insurance. And if you allow these things to stay in their lane and to stay there, stay in their role and know their goal, what it does is it frees you up. I would start to research in the school systems. What's it going to look like if we make this change and what's available. You and your wife getting on the same page, being slow as well as consistent. Listen, I want to thank all the callers for taking the time to call in. I want to thank producer James Childs, associate producer Kelly Daniel, and my host this hour, Mr. Ken Coleman. We've enjoyed the time with you. Stay tuned. We'd love to talk to you and

hang out with you again. Until next time, remember you can always tune in to The Dave Ramsey Show. Dave here. We just launched a brand new survey, and we'd love your feedback. You'll be entered to win a $100 Amazon gift card. No purchase necessary. Take the survey at DaveRamsey.com slash survey or text survey to 33789.