The Ramsey Show - App - How Do I Use Leftover Scholarship Money? (Hour 3)

Episode Date: January 1, 2021

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Hey guys, this is James Childs, producer of the Dave Ramsey Show. Dave and the team are out spending time with their families for New Year's, but we'll be back soon to help you take control of your life and your money in 2021. In the meantime, we put together some of the best clips from the show for you to enjoy. This is the best of the Dave Ramsey Show. Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studios, it's the Dave Ramsey Show, where debt is dumb, cash is king, and the paid off home mortgage has taken the place of the BMW as the status symbol

of choice. My co-host today here on the air, Ramsey personality, Anthony O'Neill. Open phones at 888-825-5225. That's 888-825-5225. Alice is with us in Houston, Texas. Hi, Alice, how are you? All right, how are you doing? Better than I deserve. What's up? Well, I work and I drive for a ride share.

And right now, I'm renting a vehicle to do it. People have been telling me I need to buy my own ride. So I did Baby Step 1. I haven't did Baby Step 2. So do you think I should buy a ride or should I keep renting a ride? Well, here's the thing, Alice. With the ride share programs, I do know for an example, I won't say the name of the companies,

but you've got to have at least a car 10 year old, no more than 10 years old. So it sounds like you're not in a position to do that financially right now. Okay. Now is this ride sharing program, is this the only source of income you have right now coming in? Or is this a side gig and you have another full time job? No,

I do this full time. Yeah. So what are you making? Anywhere from $80 on up a week. $800 a week? Oh, okay. Well, $800 plus. Yeah. And what's the rental

costing you? I think like maybe $7 a month. So you're working for free? No, so $700 a month. Oh, $700 a month, not a week. Oh, okay. I'm sorry.

Yeah. Yeah, $700 a month. So you're like renting from a rent-a-car company? Yes. Yeah. Very interesting. Well, here's the thing, the month and so you're like renting from a renter car company yes yeah very interesting well here's the thing alice you can honestly um and grab me from rome dave on this one because i'm gonna say i don't have a problem with you renting if you're stacking up money to go buy cash so for an example we're in 2020 going to 2021. That means you can get a 2011 car, okay, as long as it's 2011 or newer.

You can buy something around. No, it has to be a 2015, sorry. It has to be a 2015. 2015 or higher. So, yeah, so that's going to run you about in between $7,000 and $10,000. How old are you? 50. What was your last job um my last job was uh auction

was what working for auction auction okay what were you making there that was just very that was just like a little part-time or like okay what you're describing uh scares me because i'm afraid there's some costs involved here or some lack of insurance that's involved here that might be setting you up for all kinds of problems i certainly wouldn't sign you up for a $700 car payment or a car payment at all in order to do ride share. But if we're going to move away from this whole thing, then we have to have a replacement for it.

You've got to eat. Yes. And you've been using this to eat. I get that. I like your ingenuity. You came up with some cool ideas and you scratched around, figured out a way to make a dadgum living good for you uh i'm a little bit afraid whoever you're running the car from might not uh be okay under the contract you've signed with you using it for ride sharing and i'm a little bit afraid that the ride sharing people might not be okay with the with the type of

insurance and the fact that you're driving a rental car to do. I don't know. There's a lot of stuff in here that's bothering me. $700 a month is bothering me a lot, too. It's obviously bothering you. She has to get a car, Dave. Yeah, but a 2015 to drive for that company, maybe you drive for a different one.

Yeah. But, I mean, I don't know what the guidelines are with the different cars. I know one of them, it has to be 10 years or newer. Okay. Like an Uber? Yes. I didn't want to say it on the show. Well, that's okay.

Say whatever. I don't care. Yeah, Uber will allow you to do that. I don't know what Lyft, if Lyft has a lesser or whatever, but a lot of drivers that I know drive for both. And it's usually a side gig, too. Yes. So I would start saving aggressively and buy a car very very quickly yeah like and i'd be working like 24 7 i'd be working all the time

to get out of this because i'm afraid you're in a trap but would i go buy a car on payments i've never told one in 30 years of doing told anyone in 30 years of doing this show to go borrow money and i'm not going to start today so i wouldn't but if i woke up in your shoes i would work like a maniac and pile up enough cash in about a month to go do this um and you know you're coming into the holidays you probably can get really busy uh in houston texas because you know that that's what I'm going to do. Yeah. Yeah.

Let's solve this in 30 days or 45 days and go buy a car. And even if you bought a lesser car and you couldn't drive for that same company for a period of time, then you move up. Do the same thing again, then move up in car later. Yeah. But do it with cash and stay out of the payment business. I would not do what you're doing uh for a for a long-term plan because i think there's holes in it and i'm afraid you're going to get i'll get caught in a mess uh i'm making this up i'm not sure it just make it just feels wrong the possibility

of the mess is dave because i tried uber you know just to test it out for myself you have to provide a registration and proof of insurance so i don't know how she's doing that because she doesn't have proof of insurance she well you can get insurance through the rental car company but she doesn't have registration exactly she doesn't own the car and the insurance is not her insurance it's the rental car insurance company i know so i don't i don't you got me yeah it just just sounds like somebody. Yeah. It's tricky. It's tricky. All righty. All right. That's what we're going to do.

The second idea, other than just pile up some cash really quick and then keep doing this, is ask yourself, okay, I'm 50 years old. What do I want to be doing when I'm 65? Probably not Uber. No. Probably want a career field. You probably want to start setting some longer goals and saying okay what have i got to do to get out of this car what have i got to do to move into something else that's why i was asking about your previous career what are you trained in what can you do

um and so okay i'm going to start taking some once we get this solved let's start taking some classes let's do whatever we've got to do to move into the career field that you really want to do and hang on i'll give you a copy of ken coleman's book and help you move that direction it's called the proximity principle and um yeah i think that's going to be your longer term better answer yeah that's the is the way this feels to me so uh i know what you're doing is not going to be sustainable uh and i know even if you get into your own car that you can use and you make the same kind of money or more money and you won't have a 700 payment you'll be making pretty decent money at that point but you're working your butt off yeah and what is the long-term aspects of that probably not your plan so we need a long-term plan

and a short-term plan and uh you're a really, really hardworking lady, really smart. You're coming up with ideas. You're scrappy to get out there and scratch around and find some money. I'm proud of you. Do that. But let's get this situation fixed. And it's not a car payment to fix it. This is the Dave Ramsey Show. This year has been unpredictable.

Well, that's an understatement. But make this Christmas and New Year's your time to save money and give your loved ones gifts that will teach them how to make a plan for their money and their future. Our famous $10 sale is ending soon. This is your last chance to choose from over 40 of our most popular books, audiobooks, and more, all for just $10. Get my number one best-selling book, The Total Money Makeover. It's helped millions get out of debt. Or invest in yourself and learn what it takes to build wealth with Chris Hogan's number one national bestseller, Everyday Millionaires.

For a limited time, you can pick up Debt-Free Degree by Anthony O'Neill in the $10 sale so your teens can learn to go through college without student loans. Shop our famous Christmas $10 sale so your teens can learn to go through college without student loans. Shop our famous Christmas $10 sale before it ends at our online store at DaveRamsey.com or call Ramsey Concierge Team at 888-22-PEACE. 888-227-3223. you're listening to the best of the dave ramsey show we'll be back soon with more live content dr john deloney my co-host today here on the dave ramsey show open phones at 888-825-5225. We're dealing with the suckiest year in my lifetime. 2020.

The year where you learned that maybe you weren't essential. Can you imagine? How damaging is that? Mike Rowe was talking about that when he was here. Yeah, you know, there's just this occasional line somebody drops and it just wormholes in my brain. And when Mike Rowe was here a few weeks ago, he mentioned

that he just told 300 million people in the United States, you know what? Y'all just stay home. You're not essential. I just, the mental health person in me just, it was just a neon sign. It was a big bell that I couldn't unhear.

We don't need you. We don't need you. You have no value. Just stay home. You're not essential. We'll call you. Man, we are made to work, but more importantly, we are purpose-driven beings. That's just what we do. And when somebody just looks you in the eye, when your government looks you in the eye.

Let me just tell you. Says you're not important. Ramsey Solutions thinks you're essential. that's why we're still here doing this show that's exactly right we think your marriage and your wealth building and your kiddos and your career and your mental health is essential and that's why we're here because we think you're amazing we love people we even love those of you who look crazy. And some of you are a little crazy, I'll just tell you. I get some emails.

Some of y'all are awesome. Some of them are beat little crazy all the way up to big crazy. But most people are just good old folk, man. Everybody's got dignity and worth. You're essential. Yes. Yes. You're essential. Yes. Yes. You're essential. So I did figure out, though, as an employer and our people working from home or our people sheltering at home or our people, whatever,

in talking to some of our government officials, they said, well, we thought you guys were essential. And after talking around a little bit, I kind of figured out what the essential industries were. It's a fairly easy idea. What is that? You just decide you are. Because nobody had a real definition. That works in our individual lives, right? When it comes to dignity.

I'm essential. Screw it. I am worth being respected in this relationship. I am worth dignity at my job. No, I mean, honestly, they don't have a definition. Wow. They didn't have one. Huh.

I mean, so, you know, what is essential? I decided I am. So everyone, it's you. You're all essential, right? You just decide you are. Decide you're essential. Or decide you're not and stay home if you want, but that's okay. There's always a place for people who want to wear their bathing suits and eat Cheetos

and just call and cash it in, man. You know what I mean? Have more dignity than that. You're worth something. You're worth something. That's it. I could rant on that all day. Our question of the day comes from Blinds.com.

Find out for yourself why Blinds.com is the number one online retailer of custom window coverings you get free samples free shipping with the new promos that run every month you'll save even more use the promo code ramsey and you'll get the best deal it's like a magic word a question john yeah here we go so today's question comes from jamie in pennsylvania she visits daveramsey.com to ask, My boyfriend and I are looking into getting married in the next year or so. He has two children, ages four and seven, from a previous marriage and split custody

with no child support or alimony. We both have debt and healthy savings. What are the benefits of getting married? Would you suggest a prenup so that I protect myself prior to getting married? We would like to have a child of our own, God willing. I love his children but feel that I should not be financially responsible for them. Whoo, Jamie, there's a lot here.

A lot of this might be better in a more long-form call. I'd love to ask some follow-up questions here. Dave, what do you think? Oh, this is your – I'll jump in. Believe me, I have an opinion, but you go ahead. I do too. I don't think y'all are ready to get married. I think you're having some, this idea that I love his children, but I'm not going to

be financially responsible for them. When you join somebody in marriage and they already have kids, you are joining a family and you are joining those kids. And I know that those two kids have a mom, but they are also getting you, right? So you're going to be a step-parent. You're going to be involved in the raising of these young kids. You're going to be involved in the paying for them to get clothes and food. That's what marriage is, is the joining of incomes, the joining of homes, the joining of values, the joining of home raising.

So I might suggest that he get a prenup to protect his kids. But again, that takes deeper questions about finances and money and where people are at. But the benefits of getting married is you get to do life with a partner. You get to do life anchored in.

I know that come what may, they're going to be there. And so there's just some red flags in this question that make me think you're not there yet. The old book of common prayer says, in sickness and in health, for rich or for poor, unto thee all my worldly goods I pledge. Unless you have extreme wealth and you don't, no prenup. If you love your little life and your little money and your little independence more than you love him don't get married if you're not willing to take his kids on as if they're yours don't get married you're not ready for marriage you're not ready because

you still value your stuff more than the relationship and until you're ready to put the relationship with him the kids his, his mother, his father, his crazy uncle, and his broke-down car all on your shoulders and carry them, then you're not ready for marriage. Right. And especially if you feel like you're going to come into this house and the kids aren't going to have access to your money, just that language in and of itself, you're not ready to get married yeah exactly you got to be all in all in all in and by the way it's not test driving the car to shack up because you're not all in and it's not going to fix these

exact issues and so you date and you maintain a separate household and you have quality relationships and you grow in the relationship to the point that being with him and being married is more important than any other single goal you have and they all become subordinate to that man or woman you if you do not make your other goals subordinate to meaning that we're going to agree on doing these things together and the only possible way that the man you love more than life itself is going to have a good life as his kids do and so you you're you're taking them on i i think this is worth pointing out i i love where you're headed with this his responsibility will be to those two kids.

And for somebody to try to wedge their way between somebody. You come alongside and help them. That's exactly right. Not become an additional problem. Right. Or an additional burden or an additional responsibility. Because these kids are already going through enough. They are already going to go through guilt.

They're going to go through loyalty issues. They're going to go through what did I do to make mom and dad split up. This vacuum of joy and attention in that house, they're going to take that on. That's what four and seven-year-olds do. And for somebody else to show up and say, hey, I love you guys. This is mine. But not so much. Not so much.

Come on, man. I love you, but not so much. You're not there yet. You're not there yet. You can be. You can be, can be but you need a heart change i make 46 000 a year and i need a prenup no you don't no you don't you don't have anything to prenup when when do you recommend a prenup dave where there's extreme wealth on one

side and not on the other okay so let's say that um you're marrying someone that has 10 million dollars and you have $40,000. Okay. I would put a prenup in place because, not necessarily because of the couple. I do really in-depth, detailed pre-marriage counseling because you're going to face some unusual challenges. There will be some different tensions in that relationship. Number one. But the reason for the prenup is it's not the couple that I've run into

as a financial coach that's been the problem. It's the extended family. Right. And I like them only for wealth and kids, right, to protect children. The extended family is, no, I mean, it's like his mother is a nutcase. And you cannot keep her out of the discussion unless there's a prenup. And so what it does, it just backs everybody off. And your crazy cousin thinks you just got rich because you married the guy with $10 million.

That's right. And that kind of stuff. So crazy Eddie shows up with his dadgum RV out front. You know, Cousin Eddie, right? Cousin Eddie, that's right. And that's, you know, hey, you married a $10 millionaire, I'm here. I'm getting my part, you know? That's right.

And so, you know, that's the stuff that happens. But when you've got a prenup, you go, I don't know. It just backs off the crazy. And it's really the stuff that happens. But when you've got a prenup, it backs off the crazy. And it's really helpful with that. And it's very, very important that you take the time. But folks have fairly even, typical finances. You don't need a prenup. This is the Dave Ramsey Show. We'll be back soon with more live content

my co-host today on the dave ramsey show ramsey personality ken coleman dina is with us in utah hi dina welcome to the show. Hi. Thanks for having me. My pleasure. How can we help? So we're on baby step two, and we have $10,000 left to pay off, and we were on track to pay it off in July. But a month ago, my husband got in a car accident, and our cars totaled,

and he was in the hospital hospital and now he's on short term disability well immediately i stopped paying and i started banking the money so i have enough to i haven't by july i'll still have enough to pay it off um he is on short term disability but i'm wondering if i should keep paying it or should i just save the money and wait for the medical bills to start rolling in and pay those that That's where I'm kind of confused. How's he doing? Oh, he's on a wound rack, and his leg exploded. It got so swollen.

So what's the schedule on him being back to work is what I'm asking. So he'll be back. Well, it was mid-July, and they just pushed it through to August now. Okay. All right. And what is the short-term disability payment? How much? It's only his base pay.

He's a manager, and he gets bonuses. How much is his base pay? It's $3,000 a month. And how much is his bonuses? He usually gets about, over time he gets usually double that. Okay. So he's getting half pay right now until he goes back to work. All right.

And are you working outside the home? And I'm a bus driver. Okay. No, I'm a school bus driver, so I'm off right now. But I have submitted some applications out, so I am looking for something. Gotcha. Okay. Good. And how much debt do you have left?

$10,000. $10,000. You said that. And how much money do you have piled up? I have $7,500, and that doesn't count my $1,000. Gotcha. Good. Okay.

Good. All right. So here's our two options then mathematically. One is we continue to pause and wait and pile up cash until September when he's back to work. Okay. That costs you 60 days. Big deal. Right. No big deal. No big deal at all. Or you can go ahead and go hardcore right now, and you're trying to do it with less income than you usually have.

Because both of you aren't working. Right. Yeah. So I'm pausing this because you're in the middle of a storm and piling up cash until the storm comes by. You get back to work. He gets back to work. We push play, and we're game on again. Okay.

Does that make sense? It's not like a lifetime decision. And then the medical bills, I mean, you've got insurance, right? Yes. And insurance is covering this, right? Yeah, and it'll pop out, I think, at $6,000 max. Out of pocket. Yeah, out of pocket.

And then they start paying 100% after that. Okay. So you need $6,000 max is what we'll owe. Okay. Yeah, out of pocket. And then they start paying 100% after that. Okay. So you need $6,000 to do that. You need $10,000 to pay off debt. That's $16,000. And you've got $7,500. And you're going to have a little more by September. And then you'll have your income.

So let's say you've got $10,000, $11,000 by September. And you throw that at the $16,000 in whatever order. I mean, you can just pay off the medical bills and then reach back and start to get snowballed again right yes you see what you see what i'm doing so bills will probably be like zero percent right for a while oh no they're they're not they're due they're due when you send them they don't charge you they don't you know they don't if they put you on a payment plan it's because you're broke but you're not broke right because you've been smart i'm so proud of you yeah you've managed you've managed through covid and through a totaling of a car and your husband's leg and all this other stuff and

you're still sitting there with seven thousand freaking dollars way to go and our house is paid off dave ding ding yeah okay wow so here so here's what christmas sounds. Let's go to Christmas. Are you ready? Okay. You're debt-free. Yeah, I'm ready. You're debt-free. Excellent. Well, think about it.

I mean, you've got your income, both of you making an income. He makes $6,000 a month when he's working, and you're back working. And so we've got $8,000 or $10,000 a month coming in, and you've got $7,000 by then, $10,000 towards your $16,000. You've only got $6,000 to pay off by Christmas. You've got this. Okay. That's where the math says.

Yeah, I was just confused. I got confused for a minute. Yeah, you're doing good. I'm with you. I would just pause it, and then when the medical bills come, just write a check, pay them off, and then kick back in on the rest of it and get going. You're doing so good.

Fascinating that they have no debt on their home. And $10,000 worth of debt. And it's kind of an interesting way of doing it. But you're right. It's going to be a great Christmas in that house. Well, there's more to the story. Of course. Behind the scenes.

They got them to that point. Yeah. They're in great shape. Yeah. But here's what happens. When you hit a crisis, either uh you either run into it or it runs over you isn't that the truth you know and she ran into it she ran into the storm and i remember you telling the story in the message of hope about the buffaloes they run

into the storm yep and they get through the storm faster because as they're heading towards it it's heading towards them it goes over cows run the other way and they can stay in the storm longer yep and so you know you got to do your buffalo or cow that's it and so when it comes to this kind of stuff i won't be the buffalo yeah although they're really not very smart animals but still but well you know it's a great metaphor there it is all right nicole is with us nicole is in california hi nicole how are you hello dave how are you than I deserve. How can we help? I am having a hard time looking at your face on the computer and talking to you

because your face isn't doing the same thing your voice is doing. That would be that technological delay. How can we help? It's the machine. I'm still getting used to it. So I want to start with, I believe in a lot of the things that you guys have said so far about God providing. I believe in mana, mana from the sky. And I also too, being an artist, believe that I am made in God's image as a creator of whatever my universe is. So let's start with that. So mana from the sky. Unemployment. I've been receiving unemployment since the COVID apocalypse has started. And since then, I have been able to save $10,000.

Okay. I have like Amazon bills, phone bills, rent. So you lost your job in COVID. Yes. What were you doing? Late off. I work with children with autism. Okay.

Your job coming back? So I have clients. Yes, yes. When? I have certain, there's masks and certain different things involved. You don't work one-on-one with them now. When's it coming back? When does your income come back?

Kind of when I go back come back when i go back when do you go back are they letting you now i don't think well that's kind of the thing there's um a lot has changed in the field so like because of covid there's masks and certain things that makes work a little different so you kind of like have a little bit of room to roam. I've been a nanny on the side as well, and that allowed me to save. And now I'm no longer doing that and going back to my actual work. What's your question? How can we help you? Well, my question is, with unemployment, you can work a certain amount of hours and still

be able to receive the unemployment. I have a major dilemma. I bought the car in November, I mean, August last year. The car since has $13,000, $14,000. I took a loan out. And since then, I've had an engine replaced, blah, blah, blah, and I'm paying for a warranty. Okay, so now the car has gone from $250 to $400 basically a month

because the warranty is $150. I want to be – I don't necessarily want to be rid of the car. I bought the car because I wanted the car. Nicole, Nicole, I'm running out of time. What's your question? Okay. My question is, how do I get rid of the car or how do I pay off the car? Do I use the money that I've saved?

Do I keep saving for more and more? Gotcha. Okay. It sounds like you're unemployed. Yeah. I'd start with going back to work. Gotcha. Okay. It sounds like you're unemployed. Yeah. I'd start with going back to work. Yeah. Making more money to add to the $10,000, get the car paid off, and keep moving forward.

Either get it paid off and get rid of the extended warranty and keep it, or get it sold. Sell it and get something else. But either one's going to be based on your income. Yeah. And you need to get your income rolling again. There's nothing keeping her from going back to work. She needs to go back to work. Yeah. And you need to get your income rolling again, kiddo. There's nothing keeping her from going back to work. She needs to go back to work. Yeah.

It's time. It's time. This is the Dave Ramsey Show. Thank you. you're listening to the best of the dave ramsey show we'll be back soon with more live content our scripture of the day first timothy 415 practice these things immerse yourself in them so that all may see your progress. Benjamin Franklin said, without continual growth and progress, such words as improvement, achievement, and success have no meaning. Continual growth and progress.

Well, folks, investing is particularly weird out there when we have things going on like COVID and businesses that are when we have things going on like COVID and businesses that are messed up by things going on like COVID. And some people get freaking out. Let's get real. Sometimes you jump out of your retirement at exactly the wrong time. You stop investing at exactly the wrong time. Don't do that.

You need to have a pro in your corner corner someone that teaches you so that you make your own decisions because you're dealing with someone with the heart of a teacher if you're ready to invest or you don't have a good pro in your corner we all use personally i do chris hogan does we all personally use smart investor pros These are people in the business of investing, in the business of advising, and they have the heart of a teacher. They can help you do your mutual fund, help you do a rollover, help you get your kid's college started, help you start your Roth IRA if you want to do that, start even something for your small business.

Whatever it is with your investing side of things, they can do it. If you want to find the SmartVestoror pro in your area that is who we recommend you click smart vestor dave ramsey.com it'll drop down uh you fill out a little form it'll drop down a list of all the smart vestor pros in your area and then you pick the one that is best suited for you and that's how it all works david is in martin tennessee hi david welcome to the david ramsey show hey gentlemen how you doing great how can we help okay um i'm 19 years old i'm starting my second year college and i'm getting three thousand uh six hundred dollars back from the school from excess scholarships and i I'm on baby step three, and I'm not sure.

Actually, this finishes baby step three for me, and I'm not sure what to do with the extra money from that. And my girlfriend's wanting to start a small business on the Internet, and I'm kind of with her on that, making T-shirts and candles. And I'm not sure if I should do that, invest it, or just keep stockpiling money i would pile up money then make sure you graduate from school you're just starting don't touch this money leave it in a big pile i don't care if you got thirty six thousand

dollars yeah what are you studying david um i'm studying chemistry right now for my bachelor's degree but i'm wanting to do orthopedic surgery. Okay. So you've got a lot of college expense ahead of you. Yeah, you do, buddy. That $3,000 won't even spit at. Yeah. So just pile up money.

Pile up money. Any money you can get your hands on other than loans, pile up money. And listen, moving forward, David, you know, I appreciate it. I love business more than anyone else. We teach and help people open and run and improve businesses. This is not the time for you to try to start anything with a girlfriend. So this money is now saved. Let her know that that's the decision you're making so there's no more discussion with it. Because I can see her and others having ideas for you and this money.

Nah, you got to plan for this. We're going to stockpile it, and you're going to keep growing you and going to school. Yeah, the 29-year-old you doesn't want to be telling stories to his friends about the time that he had $3,000 and gave it to his girlfriend for candles. That's not a story you want to tell. Boy, you made that story fast. You connected that really quick, dude. That's, you story you want to tell. Boy, you made that story fast. You connected that really quick, dude. That's, you know. No.

Or you may be telling the story where she goes and makes $20 million and you wish you had, but I don't think that'll be the one. Yeah, no, no. I wouldn't do that. I would just pile up the cash. You are, as a surgeon, as a chemistry major, you are the best investment you can make. Matter of fact, it's the best investment almost anybody can make. That's true.

Because you're investing in education that is going to pay off. So just make sure the money's there for that. Just pile up cash, pile up cash, pile up cash. This is all about you completing your degree. Cesar's in Chicago. Hi, Cesar. How are you? Hey, how you doing, Dave?

Great. How can we help? Okay, a little nervous here. Sorry. First-time caller, first-time listener. I discovered you last summer, started listening to you. Didn't think in until probably about a month ago. I'm roughly $130,000 in debt, which is $94,000 in hopefully IRS.

I'm trying to do what I can to figure out what's the best way to tackle this. Most of the other stuff is car loans and credit card debt. I just went to CarMax this weekend and sold a vehicle, which I had some positive equity of $6,500. I don't know what to do with this money at this point. What in the world? How do you owe the IRS $94,000? It's a mess. I mean, in 2015 and 2016, we had a business.

I started a business with my wife. I pretty much tried to manage the business myself, try to do everything myself. I kind of screwed things up and it didn't help that I had a bad accountant. I contacted the IRS and there seems to be an issue. I guess we have to file a 1040X form to try to amend those taxes. But while this is in process, I still have to start making some kind of payment because I'm getting some letters on the mail as far as... Okay, wait, wait, wait. Stop, stop, stop, stop.

So you're saying that the returns were filed improperly and you may not actually owe this money when you file amended returns? Exactly. Okay. You have some money. You said you had $6,000 from sale of your car? Yes. $6,500.

I am currently on baby step 2, so I got my $1,000. You're going to spend some money right now on a tax attorney or a tax professional that is a stud of some kind, and if it costs you $6,000, it won't,

but if it costs you $2,000, this is job one right now. Yeah. You can take your $130,000 and wipe out 94 or a big portion of 94 with some simple proper filing. You don't do that yourself. That's how you got here. You go get a tax pro. Check DaveRamsey.com and click on our tax ELPs.

If there's not one in your area, start shopping around. Talk to some business guys that are competent business people in your area. Ask them for advice on who a good tax attorney or a tax pro is and let them dig in. You don't need to do anything. You don't worry about baby steps. No, this is job one. IRS. Yes, job one.

That's what you're doing. And, Cesar, make the area focus. Don't come up with excuses. Pick up the phone, call, set up a time to go sit down. Gather up. Find out all the documents you're going to need. Because you're going to have to do legwork here. But trust me, it's worth it because it's dealing with the IRS.

Yeah, a good tax professional can tell you if you need to get on an installment plan and what level you need to do to get the barking dogs off your heel while you get this stuff filed. But, dude, you don't wait 30 seconds. You get this stuff filed now. This is an overdue term paper. And this is killing you. And these people have unlimited freaking power.

It is unbelievable what they can do to your life if they choose to. So I really, really, really want them to go away. Yes. I want you to get the paperwork done, and you don't have anything that's more important in your life for the next two weeks other than get all of this filed as soon as possible. Don't drag it out three months. Don't drag it out two months. File the stuff.

Get with somebody. Get the work done. You know, get you a cup of coffee and work into the work into the wee hours of the morning get this done baby whatever they tell you to do because here's the reality is some tweaking and the proper filings again has the ability to wipe some of this out this is a this is a huge opportunity sounds like a good portion of it can be wiped out it really like they've impugned it on him because he didn't do proper filing, and they guessed. That's right.

And the IRS never guesses low. Low. It's a rule of theirs. It's written somewhere in a book, I'm sure. I've dealt with them. Oh, God. Oh, me too. If you have an interest in the penalties on this stuff, and it all goes away with properly amended filing, or a large portion of it does, then that's the stuff you should have been working on all these years.

A long time ago, yes. And then, once that's out of the way, you're down to just $40,000 worth of debt. Now you've got to attack your debt. That's right. Chris Hogan, good work today. Thank you, sir. It's a pleasure to be with you. This is our The Dave Ramsey Show and the books. Thanks to James Childs, our producer, Kelly Daniel, our associate producer, and phone screener.

I'm Dave Ramsey, your host. 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. Have a friend or family member that needs a daily dose of Ramsey advice in their life? Let them know about the Ramsey Call of the Day podcast. It's a quick hit of advice about life and money in under 10 minutes. Check out the Ramsey Call of the Day podcast wherever you listen to podcasts.