The Ramsey Show - App - How Do I Start Tackling My Debt? (Hour 3)

Episode Date: March 11, 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. George Camel, Ramsey personality, number one best-selling author of the book, Breaking Free from Broke. I'm looking at it behind me back here, big orange book sticking out,

and a big seller. George has done very well with that. Also, big YouTube star on Smart Money Happy Hour and The George Camel Show, one of the fastest-growing shows on the Ramsey Network on YouTube. Thanks for joining me, George. We're going to answer folks' questions today. The phone number is 888-825-5225. Joseph is in Knoxville to start this hour.

Hi, Joseph. How are you? Good. Thank you so much for taking my call. Sure, man. What's up? So I've been living paycheck to paycheck my whole life, pretty much. And I'm at a point where the money I'm making, it's not okay with me anymore.

Good for you. So I've eliminated about five just little credit cards here and there that add up. And I got about four monsters left as far as my home, a truck payment, a credit card, and a personal loan. And I'm trying to figure out how to execute that. Okay, great. So I'm going to help you lay out a budget. That's the key to all of this. Have you heard of EveryDollar before? Yes. I just filled that out yesterday. Great. So what's your income? You list that at the top. I net right at $122 a year.

Amazing. Okay, are you doing any investing right now? I actually paused my works 401k because it didn't make sense to me to put money to the side that's being matched when I have credit cards that are taking that away. Joseph, you are getting it. All right, great. So what's left on the truck loan? $23. And the credit cards? The credit card is at 15 right now, the 16 limit. And then the personal loan is a nasty one. Whenever I take these out, I try to pay them as quick as possible. That's at a payoff at a 12,000. But if I let it go its entire life, it's double that. No, we're not doing that. It's going to die soon. What kind of personal loan is this?

A bad one. It was just a personal loan to get me through. We had a new baby a couple of years ago and that way we did a home delivery. So we had to pay out of pocket for that. Okay. A few other things here and there and then bad spending habits. So you've got minimum payments on each of these, right? On the truck, the credit cards, the personal loan. I do. And I put 50% of my work income, because I do

retired military, early retirement there. And so my work income that I have is grossed 80 a year and I put, just now put 50% of that into a separate account as like the emergency fund. And once I match that, I dump the other part into a debt. So what do you have in savings right now in liquid cash? Right now, probably about 2000. I000. I just dumped $2,200 into that credit card.

Okay. So the simpler way to do all of this is you're going to list out all of the necessities, your four walls, food, utility, shelter, transportation, insurance bills. Beyond that, we're going to cut all of the non-essentials from our life and the rest we're going to attack the debt with. And so when you make your every dollar budget in the debt section, you're going to list all of the minimum payments as well as the loan balances. And whatever the smallest debt is, I'm assuming it's going to be that personal loan. You're going to throw as much as you can with all the margin you've created because you're living on less than you make. You've cut all the fluff out of your budget. Now you're going to take that extra 500 bucks to a thousand bucks,

4,000 bucks, and throw it at that smallest debt while making minimum payments on the others. No reason to move it to a savings and back out. Just put it all on there. Set a thousand bucks, four thousand bucks, and throw it at that smallest debt while making minimum payments on the others. No reason to move it to a savings and back out. Just put it all on there. Set a thousand dollars aside. That's baby step one as your miniature starter emergency fund. Don't let that get below that for any emergencies. And everything else you can squeeze out of your life, you attack with a vengeance like your hair's on fire.

That smallest, stupid, high interest, personal debt that makes throw up in your throat, come up into your mouth. When you talk about it a while ago, I heard it. You need to get rid of that thing fast. It needs to die. Like right now, like everything, not don't go out to eat and we're not going on vacation. We don't do nothing. We're getting these debts cleaned up.

You hear that? i do that crazy with all my streaming services and everything everything's gone everything's gone so you're bringing home 10 grand a month so you should have thousands of dollars how much is your house payment it is 1800 okay yeah when you squeeze your budget down you're going to be able to do probably 3 000,000 or $4,000 a month on this. Yeah. And the good news is it's just going to be for a short period of time. So three months, the personal loan's gone. Yeah.

And then three more months or four more months, the credit card's gone, and then the truck's on the way. So you're going to be debt-free in like a year of super intensity, people think you've lost your mind focus. And, of course, that means your wife has to be on board with all this because you're married and got a baby, right? I have five kids. And my wife is 15 years. Yeah.

So this is a short period of time. We're going to pay a price to win. We're going to live like no one else so that later we can live and give like no one else. There's an intensity that goes with this. We call it gazelle intensity, like the gazelle running from the cheetah for its life. Because you woke up the other day and went, this isn't working. Something has to change. The best way to change behavior is dramatically overdo it for a short period of time.

Yeah. And I've given it attempts my whole life because my dad's followed you, so I've just known your name forever. Yeah. But when I see the look on people's face when I'm getting intense with it, family, and they're sad or they want to go do something. Who cares? I give in.

Who cares? They don't have five kids, and they don't make $ want to go do something who cares i give in i give they have they don't have five kids and they don't make 120 000 a year and broke who cares what they think when you reach the point you don't give a crap what people think then you got a chance because you can't please you can't please all the broke people in our society that have an agenda for your money yeah when you break through that then you're just going to be a dad and a husband that's a completely different dude because you're going to be like mission game on full mission face we're not doing nothing else and when that happens then then that's when people

change their lives you're on you're on track you got all the i'm hearing all the right verbs all the right usage of language and the sentence structure of somebody who's getting ready to win yeah i mean you're getting intense and you said the kids are the ones who are coming at me going well we can't you tell the kids daddy and mommy are broke we don't have the money for it tell my friends and the kids no is a complete sentence dave's always said you don't let the inmates run the asylum yeah no sorry can't do that no and well well well well there's always therapy later on if you want to write checks to me we can talk about your opinion but until then your opinion's worth what you paid for it zippo so sorry my friend no nope nope nope sorry it's a highly offensive word. If you tell people no in our culture these days, they go bananas and pick at you.

You know? It's like, no. No. That does hurt my feelings the more you say it, Dave. Are you triggered? I'm just trying to live my truth out here. No. You're just telling me no.

Your truth. See, there's the problem right there. I know where all Dave's buttons are, and I love pushing them. Just pushing them. Just push them. Just George's. That's my co-host right here. He's just playing the Davophone. It's part of the game. It's part of the them. Just push them. Just push them. That's my co-host right here. He's just playing the

Dava phone. It's part of the game. Pushing buttons. Hang on, Joseph. We're going to help you out. We want you to go through Financial Peace University as our guest to go with your every dollar subscription. You need to do all that because you're going to win. You call us back and we want to hear your success or any questions you've got in the future.

We want to help you. This is The Ramsey Show. George Campbell, Ramsey personality, is my co-host today. Thank you for joining us. Folks, it's tax season. If you need a tax pro or you want the Ramsey Smart Tax Software, the best and easiest tax software to use anywhere, you can get that, of course, at ramseysolutions.com. Slash tax. You can hook up with one of our tax ELPs if you've got a complicated return.

If you've got a simple return, don't use those other guys. They're trying to sell you a bunch of crap like credit cards and everything else and hidden fees. And we fix all that. And we'll advance your refund with a loan. That one disgusts me. This question comes in from one of our listeners. Are there penalties for filing a tax extension? No. The tax extension itself does not create a penalty. Not paying your taxes when you file, let's say you owe $1,000 and you file an extension from April to October.

You will pay penalties on the $1,000 taxes that you owe if you don't pay it. So whatever your tax that's due, you should pay it when you file the extension. The extension is not extending the payment. It's extending the filing. And so if your return is complicated or screwed up or there's something in flux, pay the proper amount of taxes and file an extension during the extension period. Do your filing, but it does not extend the tax liability. You will be penalized and get late fees and penalties and interest and everything else

on the amount you don't pay. So do not, that's, you know, people that, well, I can't pay, so I'm just going to extend. No, that's not how that works, baby. It's not how that works. So it doesn't work that way at all. You're going to get penalized the whole time. And the last person you want to be in debt to is the freaking KGB, I mean the IRS. So you just- Go to the top of the debt snowball.

Yes, that's bad news so the key here is when you request that extension you have to estimate your total taxes owed and compare that to how much you paid in federal taxes during the year that will tell you if you have a tax bill so but if you're going to go through all that hassle just go ahead and file your tax return on time but you got to pay by the deadline i've've been in a situation about three times in my career where there was a complication to where we really could not file an accurate return. We had an idea where we were going to land, but we had to get a couple other things in that just were not in, not our fault.

So I filed an extension a couple times, but I paid the taxes. I never, ever want those people in my life. I've coached too many people with the IRS in their life, and it's just the last thing you want. You think MasterCard and American Express is evil, you just want to try these guys on. Garnish your wages and destroy your life. They don't have to do anything.

They're the only death that does not have to go to court to start taking your stuff. So you just don't want to screw around with these guys. They've got a lot of power, and the penalties are ridiculous, all that. So it is not, filing an extension is not an extension on payment. You've got to pay your, figure out what you think it's going to be and pay that. And even when you file a return, actually, you may actually, they may actually owe you a little bit back if you overdid it. it but um because you're guessing at that point uh educated guess but you're guessing

so ramsey solutions.com slash tax for the ramsey smart tax software the best in the business very inexpensive no hidden fees no salesman will call no gotchas and if you got a complicated return get with one of our tax pros that we've vetted. They are Ramsey Trusted. Zach is in Los Angeles. Hey, Zach, welcome to the Ramsey Show. Thank you. Thank you for having me. Sure, what's up?

It's an honor to speak to you. You too. How can we help? So I have a quick question. So I'm debt-free. I'm 28 years old. I actually just got a promotion, and I make a little over $100,000 a year. And I was wondering if I should be saving for a house or investing in my 401k or both

because my company does something interesting with the 401k where it does 5% match. But then on top of that, regardless of how much I put in, they put in 5% of my salary. So you're forced to do 5% regardless? No, not forced. They put in 5%. Yeah, they put in 5%. So you make $100K, they'll put in an extra $5,000 for you on top of the match? Correct.

Correct. Cool. Okay. Well, you're at what we would call Baby Step 3B if you have a fully funded emergency fund. Do you have that in place in your savings? I do. Awesome. So this is a choose-your-own-adventure, my friend. And based on your age and your goals and your priorities, you could invest up to the match and put the rest in a down payment fund.

You could invest 15%, whatever's left over, doing the down payment. Some people choose to do 0% investing while they get really intense and save up that down payment in a year or two. Yeah. How fired up are you on getting a house? How jacked are you? I'm pretty fired up. Okay.

I am because- Enough to give up that 5% for one year while you do a down payment? I could, yeah. Okay. Or do you want to do the 5% and do the down payment above that? Either one's okay. That's what George is saying. It's $5,000 a year that you could have put toward the down payment.

And if I'm in your shoes, I can tell you're hungry to invest. You're a young guy making good money. So I think you put 5% in to get the match, and then anything else beyond that becomes the down payment fund, and you'd be okay with being a little more patient. Let me clarify something. The 5% that they give you that's not the match, And then anything else beyond that becomes the down payment fund, and you'll be okay with being a little more patient. Let me clarify something. The 5% that they give you that's not the match, are you required to be putting money in the 401k to get that?

No. Okay, so you get that either way? Yes. Okay, so if you put in 5%, they're going to match 5% and give you an additional 5% whether you put money in there or not. Correct. Okay. Very good. And you said you're 20 how old?

I'm 28. Okay. All right. And you're single, sounds like. No. I actually have a girlfriend I'm planning to propose later this year. Oh, congratulations. You're single.

You're not married. When you're married, we'll change the equation maybe. But, yeah, we've got to take care of all that stuff too. And it's okay if you're getting engaged and you think you might get married when? Let's see, maybe a year and a half, maybe two years. Okay. I'm going to recommend you buy your house after marriage of course yeah so you're got from that now until then to save a down payment with your income unless there's a bunch of other stuff coming out of your budget we haven't discussed then i think you could put in five percent pretty easy and still save your down

payment don't you in a year and a half i do okay that's probably a good plan but you can choose to do any of these they're okay in our plan okay and then but once you got your house purchased that ready then then you go to baby step four solid which is 15 of your income going into retirement regardless of the matter okay but past that you don't and then of course um and just my experience of coaching young families and um young people being engaged and so forth over the last 30 something years tells me you will choose a better house after marriage because if you buy a house without her before marriage it'll be the wrong one

okay and all the married people got that joke it's a joke and also not a joke it's fun how that works it takes about a year of being married to know how close your mother-in-law to buy so these are the jokes right so it just takes a there's okay to not be in too big a hurry on the home purchase but uh but especially if he's in the la area anywhere in california it may take a little while i miss that so it might be a sizable down payment just to get a reasonable yeah so it might be two two and a half years to make the purchase but either way i'm probably going to do the five percent yeah we'll add her income to the equation after marriage and she's debt free as well That'll increase the savings issue too.

And yeah, all of that happens. That's a game changer. That's what happened with Whitney and I. You know, she works here at Ramsey. We got married. She was smarter than me, better looking, better with money. So we get married. We still are trying to figure this out.

I don't understand it. It's the charm, Dave. You'll get it one day. Yeah, it's the humor. The millennial jokes. But you know, the key financially, and people hate this, but the key was we were dinks. Dual income, no kids. And then we became we were dinks. Dual income, no kids.

And then we became dink wads. Dual income, no kids with a dog. And then- We got the Frenchies. S, which is two Frenchies. With a dog's multiple Frenchies. And then we finally figured it out and got a baby. Exactly.

There it is. Okay. We got there eventually. But that is a, man, if you're young and both of you are working, what an incredible time to build wealth together. And buying a home together is a really special thing. So I'm waiting until you're married because Dave's right. You chose the wrong countertop and cabinet colors, my friend. Did you say dinkwad?

Dinkwad. Oh, God. Don't call me that. What a world. I'm no longer a dinkwad, Dave. What a world. This is The Ramsey Show. George Camel Ramsey personality is

my co-host, Tasha, is with us in Denver. Hi, Tasha. Welcome to The Ramsey Show. Hi there. Thank you so much for having me. It's a blessing to be on, so thank you so much. Sure. What's up? So basically, my husband and I just want to know if it's a good idea if we should use our 401k to buy a business.

How old are you? His boss is retiring. I'm 36 and he's 40. No. No, okay. Let me tell you why and then see if you agree with me. Okay. Okay. When you pull money out of a 401k at your age, you are charged a 10% penalty plus your tax rate. And so they're going to take approximately 40% of the money. So it's the same thing as calling me and saying, Dave, I want to borrow money at 40% interest to buy a business, to which I would say no.

Okay. You wouldn't borrow money at 40% interest, would you? No. No, I wouldn't. Okay. Good. Do you have any other recommendations? How much is the business?

The business is for $250,000, and his boss is asking $50,000 down. Okay. When's the rest due? In September. Throughout, the rest is going to be due. They're going to borrow the $50,000 is what they're going to do, or cash out for the $50,000. Not the whole thing.

The boss is going to carry the other $200,000, right? Yeah. Okay. All right, let's see if we can restructure this a minute. Let me learn some things about the situation, and then I'll have other 200, right? Yeah. Okay. All right. Let's see if we can restructure this a minute. Let me learn some things about the situation, and then I'll have a suggestion, okay? Okay. We have found that I work with small businesses, 10,000 of them right now through Entree Leadership. And we know that the SBA statistics are correct, that 80% of the small businesses fail that start up. You won't be starting up.

You'll be buying existing, so that gives you an advantage. But 80% fail in the first five years. The reason that's important is why do they fail? Of the 80%, by far the number one reason the small businesses fail is what they describe as cash flow problems. When we go in and do an autopsy on them after they die, we find two things that are called cash flow problems. One is they don't pay their freaking taxes. They don't do their quarterly estimates. They don't keep a good set of books.

And they get behind with the IRS, which will take you out. They will slit your throat just to say they did. Okay? and keep a good set of books, and they get behind with the IRS, which will take you out. They will slit your throat just to say they did. Okay? It's like their goal in life. The second thing that causes cash flow problems, in quotes, is debt, debt payments, because you've got debt payments whether you're making money or whether you don't make money, and that takes people out. So I have taught small business people for a couple decades

and regular people that aren't in business to not borrow money. Now, how do we go live your dream, though? So on this business, do you guys know what the net profit is on the business on the current owner's tax returns in a year? It is $500,000. It makes a half a million dollars a year profit? It does, yes. Profit after all expenses are paid? Profit after all expenses are paid. I think you're talking about gross revenue. Yeah, no, I'm sorry. It is gross revenue. Yeah, okay. I was about to get excited because you had the deal of a century.

I know. Okay. You don't have the deal of a century. What is the profit after all expenses are paid? That we don't know. Okay. Yes. Then you don't know how to value the business yet.

Okay. But I'm going to work you through an example and help you figure this out, okay? Let's pretend that the profit on the $500,000 after all expenses are paid, including paying the manager, which might be the owner, a reasonable manager fee, like if I was going to buy this business long distance and it was going to run on its own without me being in there working, what would be the net profit I would receive as an investor that's what you're looking for okay you understand that concept hello i do yes okay sorry okay and um so you can go back and listen to this later it'll be on the uh on the podcast you can listen listen to it on YouTube, and you can catch up if you need to.

Your husband in the background that you're translating for. Now, if it's making $50,000 a year, the value of the business is between four and five times the net profit. And so the business would be worth four times fifty thousand or two hundred thousand five times fifty thousand or two hundred fifty thousand i'm making that up because it matches his price okay all right um so if it's making more than fifty thousand dollars a year 250 is probably a pretty good buy if it's making less than fifty thousand dollars a year after the manager is paid, you don't work there free, you get paid as a manager,

then this is too much for this business. What kind of business is this? It's a jewelry store. My husband's a jeweler. And how long has it been there? In this location for the last six years. Okay. Then the income stream ought to be pretty predictable.

It shouldn't have varied a lot unless you're in a mall that's dying or something. Okay? That's correct. Yeah, it's been pretty steady the last six years. Okay. That's good news. So that makes it easy to put a value on. All right.

Now, your husband's a jeweler. Good. He gets paid for being in the jewelry store and then we create net profit you follow me so if i were going to hire someone to manage this store you ask yourself what would i pay them that comes out of this profit and loss statement and then there's net profit what is the real net profit because you're you know my my employees aren't going to work for free, and I live in Nashville. You understand? I do. So we're viewing it as an investor because that's what you are when you buy something.

You're an investor. You're not just buying a job. You want to buy a business. Okay, now, if that's $50,000 and this price is approximately correct, do you understand my formula? I do, yes. Okay, now here's where it gets a little bit more complicated, so hang on for the ride. Here we go around the corner.

All right, now, what I would propose to the owner is that your husband, what does he make now? $75,000. How much? $75,000. How many employees in the store? There's two part-time and then my husband and then his boss. So four total. Okay.

All right. This thing's netting more than 50. Okay, good. All right. So I would propose to him, the owner, that your husband's going to run the store and not take out more than 75,000 until the owner, that your husband's going to run the store and not take out more than $75,000 until the owner is paid off. And 100% of the profits above your husband getting paid $75,000 salary that the store makes go to pay off the owner until he's paid. So if we owe

him $250,000 and it's making $50,000, then he'll be paid out in five years. Okay. If you make $100,000, he'd be paid out in two and a half years. And I think you're making more than $50,000, honestly. Listen to your numbers. If it's grossing $500,000, you've got cost of goods sold, you've got $75,000, a couple part-time employees, I think this thing's going to make a good profit, it sounds like. Unless they've got crummy margins on their jewelry most jewelry's got great markup so i suspect you got strong markup on this is this a mall store no it's a standalone okay it's a family

operated deal not a chain it is yeah it is that. Yeah, I think you're making bank, and I'm glad for you. Okay. That's not a criticism. I want people to be successful. So anyway, if you can make $100 after you pay yourself $75, you give him the whole $100. Do you follow me? I do. And so he gets his $250 as quick as the store makes that money.

So he's going to get his money in two to five years, all of it. Okay. But if the pandemic comes if we have a fauci pandemic i don't know what that could happen i've heard if that happened one time like back in 2020 and you can make nothing because no one comes in a jewelry store for six months then you don't have a big old payment to your old boss who comes in and bankrupt your butt okay that's what you don't want. You only pay him out of the profits. No profits, no payee.

So he can wait like everybody else waits if bad things happen. So you don't run it in the dirt. You run it to super successful and pay him off really, really fast, and then you get to make a couple hundred thousand a year out of this store. And no debt. This is awesome our scripture of the day proverbs 2 6 and 7 for the lord grants wisdom from his mouth come knowledge and understanding he grants a treasure of common sense to the honest he is a shield to those who walk with integrity.

James Garfield says, the truth will set you free, but first it'll make you miserable. Ain't that the truth? Gotcha. Check that box. Wayne is with us in Lake Charles, Louisiana. Hi, Wayne.

Welcome to the Ramsey Show. Hey, Dave and George. Thanks for having me. Sure. What's up? So I have a question. I wanted to know if I should buy a pool or hold on to the money. Okay. Uh, what are you going to spend on the pool? Uh, 60,000. Okay. What's your household income? 200 to 225, depending on bonus.

Are you dead free except your home? Correct. Okay. What's your home worth? $380,000. Okay. $60,000 pool. So you're probably going to increase the value only half of that. Correct. And we have 11 years left on our house. I don't think you're going to increase the value of your home equivalent to your spend. I think you're going to only increase it by about $30,000. That's fine. I want to have fun with my kids. We've been talking about it for years. I just didn't

know. I'm guessing. How many homes on your street have a pool that nice? Probably four. It's not weird in your neighborhood, but it's not standard. Correct. That'd be about like my neighborhood.

Yeah. Okay. How much money do you have saved? So in savings, I have a $30,000 emergency fund, $70,000 in high-yield savings, and then I have a quarter million in a 401k, 43,000 in employee stock purchase program, and I'm also saving for a kid's college. Good for you. Awesome.

Great job. Yeah, I'd buy the pool. You would? Okay. I just never feel like I'll have enough money, so I kind of don't want to get rid of the cash, if that makes sense. Yeah, yeah. Well, that's the good news about cash is it makes you stop and think.

When you use other people's money and you borrow it people don't even think they just go yeah you know it's like crazy right like they lost their minds so yeah but here's the deal okay you are saying out loud you're perfectly okay i'm guessing but i'm going to say on a 380 000 house a 60 000 pool is probably not going to raise the value 60 grand. It might raise it 30 grand. That's probably not wrong. I've been doing real estate a long time, but I might be wrong. But I doubt it raises it 60 grand. So you're going to consume some of this money with fun with the kids, and some of it will actually be an asset that you would recoup when you sell the house if you sell it before the pool goes bad someday, right?

Correct. So there you go. I think you're fine to do that. You're paying cash. You're debt-free except the house. It's a toy. You're paying cash for a toy. You're not damaging your finances.

This is why we work. You live like no one else so you can buy a pool, right? Correct. And we've been talking about it for a few years, and we keep going back and forth, and i listen to your show every day so i tell my wife i'm like i don't know so i figured i would just call and be done talking about it yeah now have you got bids for this is this a real number the 60 grand it's a real number okay good couple of things uh they have nothing to do with your question i'll just throw in the mix all right number one um spend

the extra money to get anything you can that causes this thing to maintenance itself any of the equipment okay spend a little more money on the equipment so you don't have to screw with it so much number two pay someone else to screw with it okay i'm uh yeah set up set up a pool service and have that in your monthly budget to come by it will steal the joy of this thing because it turns into work does sound like i've done this before yeah so yeah and um i've had i've got uh only one pool right now thank you jesus but Jesus, but I'm old. I'm not putting in one for the grandkids. They can put in their own, and Rachel is, by the way.

So, yeah, that's fine. But just set the thing up where it's for enjoyment. Like I'll give you an example of what we did in our lives one time that was similar. We bought a lake house a tiny little house years ago and then we tore it down built a big house on it years later but um i said i'm not going when i went to the lake when i was a kid we had to spend one of the three days we were there cutting my grandfather's yard which was the lake and you know hacking out the briars and everything else so i was not going to go down there and work you know, hacking out the briars and everything else.

So I was not going to go down there and work every weekend. That's not the purpose of having a lake house. You don't want to go to the pool and work. The purpose is if you're going to go to all this trouble, enjoy it because you paid somebody else to do the work. So I've never cut the grass once at the lake house in 20-something years. Not once. I don't even own a freaking lawnmower anymore.

I cut enough grass. I started cutting grass when I was 18. I cut enough grass. Or 12. I cut enough grass when I was 12. By the time I was 18, God said I didn't have to do it anymore. So that's what I want for you. I want you to have freedom and love this experience and enjoy it.

I think you're financially ready to go. Oh, 100%. This has been a great show of telling people yes, Dave. Who says you're a big meanie? Yeah, well, I'm even mean when I'm saying yes. No, I'm not. That's fine. Hey, the whole point of this is if you do the stuff we talk about,

if you live like no one else later, you can live and give like no one else. It's why you do all this. Maggie's in Palm Springs. Hi, Maggie. What's up you do all this. Maggie's in Palm Springs. Hi, Maggie. What's up? Hi, Dave and George. So I need advice on a car situation. My husband has gone through two cars.

One broke down, and one was totaled in an accident in the last month. And we're also pregnant with our second baby. Don't ride with him he sounds like the problem well the car was parked we were sleeping oh my goodness an uber driver fell asleep oh that's my two-year-old an uber driver fell asleep and hit three cars oh my goodness that is wild yeah ours just happened to be okay so you have so you have insurance and that's going to buy another car yes we're having another nine thousand dollars and we only bought it for

i think forty five hundred good so we're doubling our investment. That's awesome. So buy a $9,000 car. What's the question? So the question is we have also been debating getting a minivan. So buy a $9,000 minivan. Oh, that's hard to find. No, it's not.

Hard to find one which you've been looking at. We're also in the middle of a high-risk pregnancy so i don't know if we should be waiting the car situation yes you have any money okay yeah so we have um about 52 000 saved and how much debt do you have no debt we're in 3b sort of we're trying to doing 3b 4 and 5 so the the the the 52,000 for a house yes so if you spend it on a van you're not going to get a house exactly i'd rather have a house yeah but does that include your emergency feels like that's so far away already. We'll need a van before we need a house or can get a house.

Well, you have $9,000 from the insurance company. So when is the baby due, hon? The baby's not due until the end of April, but with the high risk, probably three weeks. Yeah, let's wait. Can you wait? Yes, I can wait. Are you guys down to one car right now or what? We're down to one car.

Doesn't matter. The rental goes back on Wednesday. Yeah, just wait. Just wait. But with the high risk, he's leaving work in a week. So we can do one car for a week. You'll be all right. Or go rent a car for a week.

I don't care. Just wait. You don't need to buy a car in the middle of all this. You've got more important fish to fry right now. Yeah. There's a lot of drama a lot of emotion and rightly so by the way um if i'm you guys i'm spending a hundred percent of my emotions and intellectual and financial energy on safe delivery of mom and baby

vans are not on my list of things to worry about in your world right now if i'm you don't burn a brain calorie on it. Yeah, I want all my brain calories spent on you and on baby Maggie. Focus completely on you guys. It's a stupid car. All those stupid cars will be there when you get home from the hospital, fine. Yeah, and now we have an extra $4,500 just in case. Yeah, just hang out.

And then when you get home, I'm going to recommend the closer to $9,000 you can stay on the purchase, the faster you're going to get your home. Because every dollar you spend on this is not going towards a house. Which goes up in value, and minivans don't. And you're thinking with your mom brain right now. Get home from the hospital and let everything calm down. That puts this hour of the Ramsey Show in the books. We'll be back with you before you know it.

In the meantime, remember, there's ultimately only one way to financial peace, and that's to walk daily with the Prince of Peace, Christ Jesus. We'll see you next time.