The Ramsey Show - App - How Do I Start Investing? (Hour 1)

Episode Date: February 26, 2024

🎵 Live from the headquarters of Ramsey Solutions, it's The Ramsey Show, where we help people build wealth, do work that they love, and create actual amazing relationships. I am Jade Warshaw, one of your hosts for the day. Joined next to me is Dr. John Deloney. What up? Your other host for the day. That is his to me is Dr. John Deloney. What up? Your other host for the day. That is his voice that you hear if you're listening on podcast. And hey, if you're listening on podcast, try checking out the YouTube show because it's amazing.

But if you want to talk to us, give us a call. The number is 888-825-5225. We will chop it up. We'll talk about your life, your money, and the good doctor is in so he can talk to you about all those things that involve relationships and mental wellness. Love it. John, let's get to these phone lines right away, shall we? Let's do it. Let's go to Brian in Los Angeles, California. Hey, what's going on, Brian? Hey, how's it going, guys? Thank you for taking my call. So I got a quick question. I'm on baby step two. I have one credit card left with about $12,000 on it. And then I have a car loan with $49,000 left on it. My wife suggested we refinance the car loan when we're done with that other credit card to try to get the payments higher and paid

off sooner. But once we're done with that credit card, I believe we might be able to see double or even triple what the payment is. Right. I was thinking, what would be the best option for that car loan? I think you're right. I think you've got the $12,000 and the $4,900. You do them in order. You pay off the $4,900, and when it comes time to do this $12,000 deal, you just pay as much as you can as fast as you can. Why does she want to refinance it?

Does she want to lock y'all into higher payments like that? Does she not trust you? No, it's actually $49,000 that we owe. We just got this car last year. Oh, $49,000. Yeah, $49,000. Yeah, why don't you sell this car, dude? Well, it's the only big car we have. We've got five kids and it's a Suburban.

What do you earn a year? Well, monthly we bring in about $10,000 net. Me and my wife. What do you earn a year? We, well, monthly we bring in about $10,000 net, me and my wife. What do you earn a year? Well, see, last year we didn't earn much because we were both, I'm currently on a, what's it called, a worker's comp. My wife was a maternity leave. So we made in, we bought in like 50-something last year, 40-something. Okay.

But our regular pay, we bring in like $100,000, $120,000 a year. Is this your only car? No, we have two other cars that are paid off. Two other cars paid off, and what are they worth? Yes. One's about $7,000. The other one's about $9,000. Okay.

You had to go out and get a real nice car, didn't you? No, we just needed it because we've got five kids. We don't fit in those smaller cars. I think that you're half right. I think that you need a vehicle that fits the size of your family. But I don't think that it has to be a $50,000 car. Here's my rule of thumb here. Technically, there's two rules to kind of think of.

Number one, you don't want your vehicles to be more than half of what you bring in for the year, right? And you're under that for the most part. I understand last year was different. So for the most part, you're under that. But then the next rule of thumb is can you pay it off in two years or less? And in your case, I don't think that you can. And you've got another $12,000 of debt laying around. If you wanted to make and simplify your situation right now, it would look like selling this $50,000 truck or van or whatever you're calling it and downsizing to something that's way used and way cash.

Like, dude, just rolling down the streets, not smoking endo, but just riding a minivan. Laid back. Sipping on grape juice. Laid back. It would be not cool at all. Yeah. At all. Not cool. But it'd get you out of debt.

There's no way you're going to do it. I know you're not going to. I know you've got a $7,000 car, $9,000 car, and you've got this nice Suburban out there. You can fit everybody in it. You kind of feel like a little bit of a miniature baller. You're not going to sell it, but Jade and I are both telling you this would be a way to accelerate freedom in your house.

Well, what if I'm upside down on it? How upside down? It's not worth about I think it's like $7,000 or $10,000. Sweet. Take one of those cars out of the driveway that's just sitting there. You have options. Yeah, I was thinking of that doing that

sending one of the cars that we do have that paid off that's that's exactly what i would do and and then to get out of it don't paint yourself into a corner i think you've kind of said we need this car this is the only car we can get and maybe i won't sell the car because i'm upside down so we're just kind of showing you that there's lots of options here for you. The $7,000 car, what type of car is it? It's Infinity M37, it's 2011. Okay. I put that up and have it sold by this weekend.

On Facebook Marketplace, have it gone. Take that cash in. I mean, that would wipe out almost, that would more than wipe out half of your $12,000 debt, right? Yes, and that's one last credit card that we just have. We've been doing your baby steps That would more than wipe out half of your $12,000 debt, right? Yes. And that's one last credit card that we just have. We've been doing our baby steps. We've pretty much paid off like seven or eight credit cards already.

So this is just the last one that's worth $12,000 right now. That we owe $12,000. Think about this if you decide to hang on to that Suburban. By the way, I love Suburban. It's a great car. I love them. Yeah. You're going to work real hard over the next 10 months, real hard,

and you're going to pay off about $10,000 of that car. Okay. And that's about what it's going to go down in value. Yeah. It went down already. You already felt it. I know. So all this work you're throwing into it,

it's like you've got a shovel and you're filling up a hole with sand and the hole's getting deeper from the bottom. Okay. You know what I'm saying? And eventually, you're going to depreciate the whole thing out, right? So you can buy a Suburban with like 150,000 miles for like 20 grand. I mean, at some point, it's going to be 20 grand forever. What Jade and I are saying is sell this one and go buy one that somebody else funded. Like somebody else paid all the depreciation on it.

Yeah. And it won't be as nice, dude. It won't be as nice. It won't be as fancy. It won't be. And Brian and his family will be free. That's the plan. I'm going to put this in.

I'm going to put this. John just laid it out in the best terms possible. I'm going to put it in even more relatable terms I want a Suburban like I either want a Suburban or an Escalade or a Tahoe like a nice one right um I can't afford that right now and so I have a 2012 Tahoe XL it's 2012 And it's just as big. And I bought it in cash. It gets us around. And from the outside,

it's way nicer than my car because she actually takes care of them and washes them. It's fine. But only Jade knows. I saw it. I was like, man,

what are they paying these new personalities, man? She must be rolling in here. It's a 2012 that she takes great care of. It looks fantastic. Yeah. And my other one's

a 2013 Cadillac XR. I don't even know what it's called. It'd be nice to have a 2018 is all I'm saying or a 2020. But that's not a huge priority for our family right now. One day we'll get it and we'll pay cash one day soon. And my point is, that's what that looks like. It's this place in between where you're able to pay cash. You get as close to what you want to get.

And here's the thing. I don't have a car. No, I don't have an $850 car note. So we can save up that money really, really fast if we want to. And that's what's your car note right now. It's 824 a month.

Brian! Buddy! Wow. Hey, can I tell you the most annoying part of all of this, just globally speaking? And I say this because this is how families get trapped. Jade is going to buy your Suburban from you at some point. Okay.

And she's going to buy it at a $10,000 loss to you. Right? So because she bit the bullet for two years and saved cash, she's going to buy your car from you less than you paid. I mean, she's going to end up making money off it. And that's how people who are disciplined with money become wealthier than people who get trapped in these cycles where they just want to look rich, but they actually aren't.

I'll be laughing all the way to the bank at Brian's expense. We love you, brother. We love you, Brian. This is The Ramsey Show. You are listening to The Ramsey Show. I am Jade Warshaw. To my right is Dr. John Deloney. We're taking your calls. So call us up. The number is 888-825-5225 and we'll get into it. Today's question of the day is sponsored by Neighborly, your hub for home services. Before the weather warms up, Neighborly can help you find local service pros like the Ground Guys, Five Star Painting, and Mosquito Joe to turn your outdoor space into your favorite place.

Find the help you need at neighborly.com slash ramsey today today's question comes from help in illinois help writes we've been married 23 years and my husband has struggled to find a career he currently has a business which is not profitable so he currently has a hobby where he spends our money i have a full-time job and make about $400,000 a year. My husband is supposed to contribute a set amount per month, but he doesn't and will not even mention when he misses contributions. When he does bring in a big check with his hobby, I added that, we argue about what he's going to contribute to the household. He thinks he shouldn't have to tell me when he spends from our joint account. I am the one paying everything,

so I need to know. How do I fix this? Wowzers. Man. So this is, Jade, a marriage that is in way more trouble than it appears to be. It looks like,

hey, we make a whole bunch of money my husband's just in there making a time machine that never works right and um i have to go to work it's like honey i shrunk the kids right he's in there making a thing and yeah he just loses money loses money loses money gets a big check and then he's like it's all mine but this is a wife that is fully resenting um her husband this is a husband who completely disrespects his wife and this is a this is a train wreck in slow motion happening in real time yeah it sounds like she's they've been in this wheel yeah and over and over. Yeah, this business is going to be the one.

Yeah, and all the while, she clearly is co-rushing it in the top 1% of earners in America, right? So she must be amazing at what she does. What a mess, what a mess, what a mess. So, okay, well, let's think about this on both sides because there is a world where what do we think john he should be contributing because he may not make 400 000 he may not make 200 000 a year or even 100 000 a year but he's got to contribute something to the household if he says he's going out and working every day well i think the important thing here is less about the set amount and both because she makes

400 grand a year she there there's something in here that says she wants him to be making a certain amount yeah but i don't think it's about the money i think it's about i want you to participate in this home and you don't you just extract from this home right you're a cancer you continue to grow and pull nutrients away from the mothership and you're not contributing anything i want you have a purpose here and so they and their family have defined purpose as dollar amount, which I think is a dangerous place to be. Instead of saying, here's our money in this pot, here's our values outside of this pot. How are we going to live those things out? And he is saying, I don't care what your values are. I'm going to go do what I want to do when I want to do it. That's not good.

Yeah. Right. your values are i'm gonna go do what i want to do when i want to do it that's not good yeah right yeah i agree i also think though like where do they start because on the one hand you say i think he if he just contributed anything but reading this i have a feeling if he if he made forty thousand dollars a year she'd be like now that sucks i bet not you bet not yeah You bet not? Yeah, I bet if he did anything. I think there has to be a, this is one of those, I normally will say, you got to stop the dance, right? You got to turn the music on, turn the music off, turn the lights on. What I mean by that here is, this is a moment where you say, hey, starting next month, I'm pulling, I'm going to open my own checking account.

Oh, you think so? And we're going to split this thing up and we're going to have a hard conversation about contribution and participation and what love looks like in our home. That's good. Because this is a recipe for not just a divorce. This is a recipe for an implosion. Somebody's going to do something dumb

if they're not already doing something dumb. Okay, so that's step one. What's step two? Some sort of counseling, right? Absolutely, yeah. This has reached a point where two people can't sit down and navigate this on their own this is too big of a mess this is shame this is control this is i'm tired of of playing both the feminine the masculine role in this home this is you don't love me you don't listen to me this is all that

it's very challenging to navigate that on your own so yeah go go sit down with professional help and here's what we have to say we are not trying to save our marriage we're trying to build something new um if you try to save it it's well what about this and i don't cool that the this marriage that they had for 23 years has fallen and crashed we got to build something completely new and thankfully money's not going to be an option i I mean, it's not going to be a barrier. We got $400,000 a year. We can do whatever we want to do. Finances aren't going to constrain us. It's just going to be our own egos and our own decisions to build something together. That's what's going to constrain us. That's good. That's good. What a mess. What a mess. That is a mess. That is a mess. Yeah,

I think that both people definitely need to be contributing in some way that is agreed upon. It's like, if you stay home and you're not making money, you better be taking care of kids is all I'm saying. All right, let's go to the phone lines. We got Ben in Fayetteville, Arkansas. Yep, that's it. Let's go, Ben. What's going on? Yeah. Hi, how are you guys? Doing good. How are you? Oh, pretty good. So we actually just finished paying off the rest of our credit cards, and we still have a house loan. But we have the three- to six-month cushion in our bank. Sweet. And we're actually just looking for somewhere to start investing money.

I'm 30 and never really invested anywhere. And I just want to start having something to show for that extra money that we're bringing in. For sure. That's not going for those credit cards and car loans. So technically you're in baby step four, which is for those listening, that's the step where you start investing 15% of your gross income every single month. And so a great place to start is to look at your employment situation. I mean, are they offering you a 401k or 403b or anything like that? No, no, this is just a small business. It's me and one other guy working for a guy who owns the business. Okay. And they don't even offer health insurance. I have that already. Health insurance.

Not a big deal, but yeah, the 401k that he doesn't offer. So then if that's the case, I would just start with a Roth IRA. You can max one out. I think the limit this year is $7,000. And so you could start with that. And then if you still have money to go to get to that 15%, you could open up like a simple 401k and set aside some money for yourself. Are you basically treated as a contractor is that right no no i'm an employee yeah i'm still i'm still i still have a w-2 and a w-4 i'm not at 99 then i would start i would start probably with that roth 401k or roth ira and then from there you could look into something since you do your own um health care you could

look into an hsa that's another great place to start and then there's always the brokerage account which is great so you've got some options there i always suggest working with the ramsey uh trusted pro on that because they can help you get started in choosing the funds the way that we teach here is kind of just like this basic umbrella of course you want to start with mutual funds and we want you to mix that 15% of money that you get over four different types of funds so that you're spreading your money out. You're not just putting it into one or two or three stocks, right? So you want it to go into growth funds, growth and income funds, aggressive growth funds, and international funds. So that's how you're splitting your money up when you buy investments within your roth ira does that make sense yeah so so doing something like

because me and my wife are looking into it before you know i called you guys so doing something like the app fidelity or or anything like that that's not something that is good, right? We need to... You're saying like if you were to go on the Fidelity app and do your investments through them? Yeah, not by ourselves, right? That's not a good idea. It's better to do it with someone who's more knowledgeable, I guess. Yes. I mean, you can choose the brokerage that you want if you wanted to, but the whole idea is you're getting someone who's got more expertise than you do. I think it is good to kind of get in there and see for yourself what these things are

and read about things and get your eye on things that you think, hey, I think this could be a good idea and then run it by that pro. And you guys can actually talk about it like adults. And you're understanding what he's saying and he's understanding what you're saying and you're working together,

not just hiring a guy, you know, that'll automate it and be like, hey, this is what you do because you don't want somebody to just take it over for you. You want to feel like you're speaking into it as well. Does that make sense? Yeah. So that's how this works. Work with a Ramsey SmartVestor Pro on your investing, especially to get started, just so you know where you're going. This is The Ramsey Show. What's going on, everybody? You're listening to The Ramsey Show. I am Jade Warshaw. This is John Deloney, the other voice that you'll hear on the line. We're taking... I'm John, how are you?

Just wanted to clear it up just in case people were wondering who that other voice was, John. We're taking your calls. The number is 888-825--5225 so jump in and we'd love to hear from you let's go to jennifer in sioux falls south dakota what's going on jennifer well hi hey thanks for taking my call i'm so excited it's jade and john we're excited to talk to you so i'm looking for some ideas on how to deal with my adult son. I just want to say it's so hard to be a parent to adult children. So we've, my husband and I have three adult children. They're all college graduates. They're all gainfully employed. So our plan, because it was important for us that they go to college. So our plan was that we would pay for 25% of their college need,

their tuition and room and board, and then they were responsible for the other 75%. Okay. Then of that 75%, whatever they would need to cover that, we would just loan it to them, and our gift to them was that it would be interest-free. So that way they didn't have to go out in the lawns. So one of your kids is not paying you back, are they?

Well, he's paying me back, but boy, it's like a turtle. I'm just like our daughter. She got after it right away, and within five years, she was all paid off. And then our other son, his amount is so much smaller that I'm really not too worried about him. And so it's that middle son. I'm just like, wow, honey, this is a lot of money. How much? His grand total was $57,750.

Have you written out terms and handed them the terms of the loan repayment plan? And John, that was our mistake. In hindsight, we should have had something written down, some kind of goals or rules or payment plan or something, but we didn't. We just said, you know, nine months after you graduate, the payments will start. The payments will be whatever you can handle at the time. And that's kind of just how we left it. So in hindsight, we should have done it differently. Oh, my goodness. Okay, so how much would you say you're receiving?

Are you receiving anything or you're getting some but it's sporadic? Tell us a little bit about middle child paying back. Yep. So he has a pretty decent job, I'll say. I really don't know what he makes. We don't talk about that. And I'll start out by saying our relationship is good. Hold on.

No, it's not. It's not good. It's not good. He's got this hovering over him. You've got it hovering over you. And even coming out the gate saying he's got a good job, you don't know. He could be making $30,000 a year or he could be making 250. You don't know. And so you're already bringing some baggage, like things are good, except that, you know what I mean? It's important

just to call a spade a spade on this one. So when, okay. So at nine months, we decided together that $250 a month would be his payment. Okay. That's what he said he could handle. So I said, great. So like two years went by and he was still only at 250. But in the meantime, he's gotten a few raises. And of course he's probably gotten some tax refunds. Oh, okay. So you're trying to spend his money for him. You can't.

Y'all made an agreement and he's keeping up the agreement. Well, I know he's never missed a payment. He's doing exactly what y'all sat down and agreed to. The bank can't call you and be like, hey, we see you make more money. You should pay us back faster for this car note. Like y'all shook hands. Was it a terrible deal that y'all shook hands on, both of you? Yes.

$250 a month he's going to owe you for the rest of his life. I know. 19 years. I calculated it. I know, but you shook hands on it with him jennifer you're in the wrong yeah you can't i'm sorry he spent his money for him yeah it was in and on many on many ways was was this not the right choice and i hope that you see this in retrospect number one you can't lend money to family members you have to give it or don't do it at all because it changes the relationship like like you said earlier oh our

relationship is good and then john went through and told you why it's not as good as you think and then the next thing is you guys decided the terms and you shook on it or spit shaked or pinky swore on it whatever you did and then you changed them in your mind based off of what you think that he's making more and what he should be doing. That's not fair. I know. I know. Hold on. Hold on. Jennifer, in a perfect world, you're right. He should go. I, my parents gave me 57,000 extra dollars to go to school, 75 in total, but 57,000 is mine. And I'm going to knock this out as quickly as possible. Should that be the way the world just works? Yes, it should. But he doesn't have, here's the thing. Unless he starts listening to the Ramsey show and he

becomes motivated to get out of debt, he has no real motivation. There's no interest on it. Mommy holds the loan. She's not going to come repo my house or my car. There's no interest on it. Mommy holds the loan. She's not going to come repo my house or my car. There's no, you have not built in any sense of urgency around this deal. So I've been thinking, so can I like create a business, a payment plan? You can do whatever you want. Just know it may come at the cost of the relationship with your son or it's going to have to be, Hey, to something i agreed to 250 bucks a month and um we're going to begin to plan in three months or 90 days or in six months i want to move that up to 500 or to 600 or i want this whole thing done in five years it's starting to weigh on us our relationship or whatever but

you don't know that he's not talking to his friends saying, my mom and dad really set me up for success. They gave me an interest-free loan to go to school. They're barely requiring me to pay it back. And it's really setting up me and my family. They may think you were the greatest parents ever. And on your side, you're like, I've got a degenerate son who doesn't. He's just doing exactly what y'all agreed on. What's your son like? What's he like? He, I love him to death, but it's just money. He just, his whole life, he's just ignored money. So, cause I think it gives him a lot of anxiety. I think he just thinks if I don't address it and I can make all my payments and, you know, I'm in good standing everywhere, I must be making enough money. He just doesn't think beyond tomorrow. And can we be honest

about why? He's never had to. Yeah. You've always taken care of him. You've always come up with the money for him. And then secretly you seethed that he wasn't like your other two kids. Yeah, I wish he'd be more like his sister. Exactly. And you know what? Here's the deal. He feels that from you. He knows he's not enough for you.

And because everything's been taken care of, he doesn't know why. He just knows mom doesn't like him. Mom's always asking about my money. Mom's always asking about my tax return. And there's this hovering 50-something thousand dollar gap that makes sitting down at the dinner table really tough for us. So what you're saying is just leave it alone and I just have good.

No. If you and your husband say, hey, we need this money for retirement, or you and your husband say, hey, we think we're setting a bad example, I think you sit down, but as part of the conversation, you can't start the conversation with your sister did this and your brother did this and you're just, it can't do that because y'all shook hands on it. It has to be, Hey, I messed this up your whole life. I have let you go around the issue of money, which accelerates anxiety. Of course, gasoline on anxiety, instead of holding your hand and walking you through the middle of it. And I didn't do my job and I'm sorry, but we can't do night. I'm not going to be, I have my son in debt to me for 19 years. I love you too much for that. And that means we're gonna have to accelerate the payment plan. I'm willing to help you with a budget. Jade and I, we're going to give you financial

peace university and every dollar for you to hand to him as a gift and say, here's a path on how to walk through that anxiousness to healing on the other side of this deal, to where money is not an anxious thing. But to change the terms, and he might say, I don't have it. I don't got it. And then what?

And then what, right? And then you just have to accept the fact that you, if you say, I want to change the terms, and he says, I don't want to do that, I can't do that, or I have these other responsibilities, there does come a point where you kind of have to accept. Yeah, you got a choice to make. You're going to lose your son or you're going to, this is what we agreed on. And so that's what he has said to me. But I don't think he's really sitting down and looking at his finances to know if he couldn't even bump it 50 bucks a month. Yes, but you don't get to choose that. You don't know, yeah. You want to choose it, but you don't get to choose it. Let me tell you something. My husband and I had a Parent PLUS loan that was in his mother-in-law's name,

and it got to the point, because she wanted us to pay it off more quickly than we were, it got to the point that it was getting frustrated, and we finally had to decide, when you're around us, you have to choose the mom hat or the bill collector hat you can't be both and so once she realized that and it's like okay like mom hat time i love you all these great things and the less that she chose to put on the tax collector hat the better the relationship got you have to own your mistake on this one and not be mad at him that he's not thinking 50 more dollars or 100 more dollars. You're going to change the terms, sit down and change the terms like adults. But you got to go first and say, I messed this up.

All right. All right. You're listening to The Ramsey Show. I'm Jade Warshaw. This is Dr. John Deloney. We're taking your calls, America or wherever you want to call in from. Just know that the number is 888-825-5225. John Deloney, I'm so excited because tomorrow morning, George Campbell, fellow Ramsey personality, George Campbell and I are going to be doing this really cool bonus hour that we're calling the Every Dollar bonus hour where we're coming in at nine in the morning yeah 9 a.m tuesday the 27th and we are helping people live on youtube with their budgeting questions now you might be thinking okay jade what's the big deal that's what the ramsey show

does this one is different because a we're gonna have every dollar pulled up live like they're showing it on the screen right now we're gonna have every dollar pulled up live. Like they're showing it on the screen right now. We're going to have every dollar pulled up. So when you ask the question, we can actually show you, you'll be able to see it in real time. Like, hey, Jade, you know, I have a problem with irregular income. What am I supposed to do? We'll actually be able to show you in the app, every dollar, how to do it. You can ask whatever question you want and we'll be able to actually let you see it, which I think is a big piece to learning. It's one to hear it it's another thing to see it happening and so i'm really excited because i think that's going to really help people get their budget and their money on track once we've all been to like work presentations where some guy gets up and starts talking you through like uh

like a tech thing he's like when you're going to want to click on the third box. And by the time I'm, snooze. Yeah. I'm just falling out. So yeah, I've been able to watch you guys do this. We'll be fantastic. I kind of feel like you made it sound like it's the same thing though.

No, I'm saying like, if I'm sitting here like, okay, when you get to every dollar app, you're going to open it up and you're going to like, ah, you already lost me,

but Hey, you guys are going to sit here and answer questions in real time. I'm going to show you. Now I'm in on that. And every dollar is really, it's just, it's intuitive. It's brightly colored. Like, I feel like there's things that are going to show you now i'm in on that and every dollar is really it's just it's intuitive it's brightly colored like i feel like there's things that are going to make you stay engaged plus it's your question it won't just be us just talking about it like

we're not going to just be yapping about budgets it'll be because of your questions so come join us tomorrow tuesday february 27th at 9 a.m remember it's on youtube matter of fact you could go there now and click the little alarm button so it'll remind you to be there it's bright and early uh at least central time it is so tune in whatever time it is in your neck of the woods and we'll see you there all right let's go to the phone lines where we've got kelly from oxford mississippi what's going on kelly hey jade hey dawn um i'm really nervous been sitting here uh really nervous you don't have to be nervous we'll be nice i've been listening um for like three to four weeks um kind of binge listening actually um so i'm just um you know i'm 22 and i fell in the hole with the trap that

america sets um that you know new cars they're great. So I have a car payment and I'm looking to try to get out of it and just trying to figure out the best way to get out. All right. Well, let's hear more about it. This car payment, what's the car payment and what's the entire balance on the car? I pay $565 a month and I owe $27,000, a little over $27,000 on it. Okay. And what is your take-home pay? Like what do you bring home every month? Let's see.

Right now I'm bringing home around $3,000 every month. $3,000? $3,000 and your car payment is $560? Yipes. Yes. Oh, that's a big box of farts. I hate that for you. That's so much money. That sounds terrible,ipes. Yes. Oh, that's a big box of farts. I hate that for you. That's so much money.

That sounds terrible, John. Okay. What other debts do you have? It's debilitating. That's so, because rent is so expensive right now. Groceries are so expensive. All right, I'll be quiet.

I'm just sad for you. What other bills do you have? Like, what other debt do you have? Is this your only debt? That's the only thing I have. i'm on my own phone plan i still live at home with my mom and dad currently so um i don't have rent um and i think that's that's why i fell into a trap so easy is that i didn't have payment just the time and it was are you paying any rent to your parents yeah ma'am okay um yeah we got to get out of this car so if you were to sell it today you owe 27 on it if you were to sell it what could you get for it have you looked it up

in kelly blue book yes profit 40 um it said anywhere from 30 to 32 listen bye felicia i know that's right car's gone she gone gone gone you're going to pocket a little bit of change to get you a car in cash. This is a perfect scenario. Right. And your next car is going to be ridiculous. $5,000 ridiculous. Max. Listen, what do you think?

You're silent. I mean, it's kind of scary, but I mean that if you know if that's what gets me out of bed and gets me to where i can like sleep at night and not have to worry about debt and here's the thing yeah i mean let's put it in terms that are a little bit more exciting so you sell the car you pocket five thousand dollars you go turn around and buy five thousand dollar car in cash now you're no longer paying $565 a month. You pair that with whatever other savings you have. Think how quickly you could save up another $5,000 trade in your old 5,000 junker. You're probably going to get 5,000 back for it because it's

already taken all of its hit. Now you buy a $10,000 car and then you still don't have a car payment. Think how fast you could save up another $5,000, trade it in. Now you got yourself a $15,000 car. Do you see how this works? And before you know it, you're going to be driving a $27,000 car that you paid cash for. And not living at your mommy's house anymore. Well, let's talk a little bit about that. So if you're living at your mom and dad's house, and this is not just for Kelly, but

anybody listening, it will behoove you to pay your parents some rent so that there's a paper trail because the time is going to come when you're going to want to move out, whether it's because you want to get an apartment or whether you've saved up enough of a down payment that you're going to buy a house. And they're going to want to see at least a year's worth of rental and renter's history, especially if you do our plan and you don't have a credit score. Okay. That's not just for you,

Kelly. That's for anybody listening. Don't just live at mommy and daddy's rent free. Make sure that you can show that you've paid something. Even if it's 500 bucks a month, show and pay something. It does. It helps you out in that way.

And it just helps you out in the way of being an adult and kind of paying your way through it. Does that sound fair enough kelly i think i scared her away are you all right yeah i'm surviving okay you're sorry i know we came at her hard in the paint but honestly that's what you need to do uh to experience more peace this car payment is that's just ridiculousness so sell it buy yourself a car in cash all right let's go to another phone caller we've got jr he's in indianapolis indiana what's going on jr hey how's it going doing good how are you taking my call how can we help uh yeah my question is how do i go off and tell my or not go off but how do i go off and tell my, or not go off, but how do I go on and tell my parents

that renting is okay? They, they believe that renting is just a waste of money and I don't know how old are you? 22. Are you living at home? Yeah, I'm living with my parents. I have my wife and son with me as well. Whoa. Yeah. I would tell you that your parents don't get a vote. You have a wife and son. You've got your own family. Go get yourself a place. Yeah. That's what I,

that's what I talked to my, um, other relatives. Uh, that's cool that I'm very close with. Uh huh. Well, as long as you live in their house,

they're going to think they have a vote by the way. Yeah. As long as you live with them. And they do have a vote as long as you live in their house, they're going to think they have a vote, by the way. Yeah. As long as you live with them. And they do have a vote as long as you live in their house. Right. And, yeah, they just, it's just, they believe my parenting is not as good as theirs. And they always have, they always make it seem like they have a say in it. They do, because you're living in their house.

Take your family out and get your own place. Yeah. As simple as that. What's keeping you from renting a place? It's just, I don't know. I'm, I'm, I'm scared. Uh, I've never been out in the real, real world. John, you got to come on. You should have thought of that before you made a human and before you got married. So you're in it, bro. You jumped in the deep end of the pool, and you dragged a wife and a child with you. And so you don't have the luxury of saying,

well, I never took swim lessons. You got to figure out how to swim right now. And this is when you move out this weekend and get a one-bedroom apartment, and you get job number two and job number three. You're going to figure out, like, quote, unquote, what I got to do and what I'm passionate about and what I'm interested in as you're flying down the highway, brother,

because you have a wife and a child to take care of. Right. What do you make right now? I make about $2,200 a month. Yeah. You're going to triple that. Yep. Triple that.

Yeah. I also talked to my wife, and my wife's thinking about going back into the workforce as well. When? How old's the baby? He's about to be one. He's one years old and four months. Yeah.

Okay. So she needs to get back into the workforce. He's a year and four months. You guys have got to, you've got the family there, so you've got some daycare. Obviously, if you were living with them, they'll probably be willing to help you out in this way. But you've got to start making some major moves to John's point. If you want to see the needle move on this. Thanks for listening to this hour of the show. This is the Ramsey Show. Thank you.