The Ramsey Show - App - How Do We Get Out of a Car Lease? (Hour 3)

Episode Date: May 18, 2021

Debt, Insurance, Investing, Education Sign Up for a FREE trial of Ramsey+ TODAY: https://bit.ly/3rZTUAx Tools to get you started:  Debt Calculator: https://bit.ly/2Q64HME Insurance Coverage Checkup: https://bit.ly/3sXwUn5 Complete Guide to Budgeting: https://bit.ly/3utmVXi Check out more Ramsey Network podcasts: https://bit.ly/3fHhbVE

Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studios, it's the 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 the show. Anthony O'Neill, Ramsey personality, number one best-selling author and host of The Table.

Big-time YouTube and podcast explosion that's happening is my co-host today. You jump in, we'll talk about your life and your money. The phone number is 888-825-5225. Tiffany is with us in Sacramento. Hi, Tiffany. How can we help? Hi, Dave. I have a little complicated

issue here. Hopefully I can explain it. Okay. My husband had a job change and real estate is different in various parts of California. And we had to leave our home. We're renting it out. We only owe three and a half years on it now. So we, because my husband's job changed, we left that house, but are renting it out. We owe three and a half years. But where we live now, real estate is super expensive. And so my husband wants to sell the house. I have sent a million value to the house. If we, if he lost his job, we would go back to that house. If something lost his job, we would go back to that house.

If something happened to him, I would go back to the house. So I feel like it's more advantage to have a paid off house. And oh, the only way we could buy a house in the area that we live would have to be a 30 year loan. So it makes me sad to think about selling that house and you know walking away with maybe two hundred thousand dollars and still having a 30-year loan am i making sense at all um well i mean i understand what you're saying if that's what you mean the uh where is the house uh the house that we only owe three and a half years on yes ma'am that's the only one you've got right yes it is in uh susanville california you've probably never heard of that no i haven't how far how far away from you is it uh four hours okay and you left there because he took a job in sacramento yes do you

feel like his job in sacramento is going to end soon no so how long do you think like his job in Sacramento is going to end soon? No. So how long do you think you'll be in Sacramento? You know, we have children that are in college now or getting college age, so I really don't know. I mean, that's kind of part of my reason, too, is like, do I really want to buy a house? But then we try and rent a house. I mean, are you going to be there two years or are you going to be there 20 years? Yeah, yeah, yeah, yeah. Two years, two to five years. Maybe not 20 years. Yeah. How old are you guys? I'm 46. My husband's 10 years older.

Okay. So he's going to work 10 more years. He's probably going to work 10 more years anyway, right? Right. Yeah. He suggested Tennessee. All of us more years anyway, right? Right. Yeah, he suggested Tennessee. All of us Californians are moving to Tennessee now. Okay, so how would that take you back to Susanville? Yeah. Right. I'm not for moving to Tennessee.

I want to stay in California. Oh, okay. I don't think this is about the house. I think this is about you holding on to Susanville. Right. Why is the house sentimental? I don't know. Got to know something.

How long did you live there um we were there about nine years was that your first home yes yes you know i brought all my girls home there is it is it just because i hear like security as well like if something i kind of almost feel like you're grieving the fact that you left there. Yeah, there's a lot of different grief. So anyways, yeah, I guess part of me is, yeah, I'm attached to the house. Part of me, it makes me sad to think that I probably wouldn't have a paid-off house until I'm close to 80.

That grieves me. Well, I don't think that's true. What's your household income? Probably 180, 190. Okay. Close to 200. Yeah. I mean, I think you guys need to do some more investigation of real estate in your area.

I mean, Sacramento is a more expensive market than Susanville for sure, but it's not San Diego and it's not San Jose. It's not Silicon Valley. So I think making $200,000 a year with a $200,000 down payment, you can do a 15-year on something that you can find in the area and get it paid off and have a game plan to have a paid-for house. I'm not signing you up for a 30-year mortgage. I agree with you on that, but I think you're overstating that

and adding some drama to this discussion because your heart is breaking about Susanville somehow or another. I don't know what it is. I can't tell. But, I mean, you're not going back there. You know that logically, but there's something emotionally that says I can't let go, and I don't know what that is. So, you know, I think that it's important for you and your husband and your all's relationship to work through that part of it.

And I think when you kind of come to the conclusion that you're not going back there, you're going to sell it. Yeah. It's what i would do i wouldn't suggest you own a rental property four hours away that's paid for yeah um almost paid for um and so i'm going to select a property with my two hundred thousand dollar income in sacramento with a two hundred thousand dollar down payment that's a 15 year fixed and i think you can do all that so um uh you know i agree with your husband's conclusions what i still can't find and and i'm not i wouldn't come down on you for this

but there's something going on with you and this move that emotionally that's causing you to think to to lean this direction and that's more of a concern to me if uh that for you guys going forward for your relationship for your peace of mind all that kind of stuff than just whether or not you own a house uh in susanville yeah so i mean you could kind of feel it in the air i really can't i i really can't but i'm right there with you dave two hundred thousand dollars down payment home four hundred four fifty max five three hundred thousand dollars to pay off and then hey uh and if something was to happen and i hate to say this hopefully they have proper term life insurance and they can take care of the house and she's back to where she was you know she's safe she's secure yeah there's something about the past that's going on there i don't yeah there's

something happening open phones at 888-825-5225 thank you for joining us america so the thing to remember to tiffany's credit and for it's a good lesson from that call for all of us and i i have to stop and remember it uh not as often because i've done this show for 30 years and it keeps me remembering it but personal finance is personal yes and so there are times with money that it's okay to do something that's illogical or maybe not the perfect math thing because it's what you are doing yeah you know it's like you wouldn't logically spend what we spend on a diamond for an engagement ring or a wedding ring right it's not logical it doesn't it doesn't match the numbers it's not a return on investment in terms of mathematics.

It's a personal thing. It's a gift to your betrothed. And so it's okay for it to be personal. It's okay to have feelings about all this, in other words. Your number one wealth building tool is your income. For business owners, this comes as no surprise, as you're used to putting in extra hours and watching your bottom line. That's why Christian Healthcare Ministries, or CHM, is a great option for those who are faith-focused and budget-conscious. CHM is not health insurance. Rather, it's a health cost-sharing program. It's not harder,

but it is different. To learn if CHM is a fit for you or your business, visit chministries.org slash budget. Welcome to the Ramsey Show. Anthony O'Neill, Ramsey personality, number one bestselling author of the book, Debt-Free Degree, is my co-host today as we answer your questions about your life and about your money. Jared is with us in Los Angeles. Hi, Jared. How are you? I'm good, Mr. Ramsey. How are you doing? Better than I deserve. What's up? Hey, I was calling because sadly my wife and I found you guys a little too late. But in December of 2020, we got into a fleece, and we want to get out of that.

And currently, we are on baby step number two. But the problem is we put all of our savings and got down to the $1,000 of emergency fund towards our debt, the payoff credit card and one debt. So now we have at least that. Now I see that we should get out of it immediately, yet we don't know the next steps we should take. Okay. Well, we've got to gather up some numbers to ascertain the damage. Yes, sir.

All right. The first number is you call the fleece company and you ask them what the early buyout is, which is effectively your payoff for today. Have you already done that? Yes, sir. It is $38,740. Okay.

And so this is a long-term fleece, isn't it? Was it a five-year? It's only a three-year. A three-year. Okay, $38,000. Have you looked up the value of the car yet? Yes. Because it's a 2021, KBB actually doesn't even have, can't even give you the value.

So I looked at a 2020. It's a Honda Odyssey. The 2020, if I trade it in, it's $34,000. If I go private party, the range is $36,000 to $38,000. Okay. So, hypothetically, if you could sell to an individual, then you could probably get out of it whole, right? Because if you can sell it for $38,000 and you can give the fleece company $38,000 and they give the title to you, then you've got your deal and you're out, right?

Yes. And that's the goal here um that may be tough for two reasons one is it's freaking brand new and two is if somebody's gonna buy a brand new car they're gonna buy a brand new car uh and uh two is it's a very expensive car because it's, you know, $40,000, and not a lot of people walking around with $40,000 in their pocket buying off a Craigslist. When you get much up above $20,000-something, you start to get a little bit less transactions, private sale. A lot of transactions then are dealer of some kind involved. Okay, so it sounds like you probably get a dealer to pick it up for like $34,000 or $36,000 maybe, right? Yes.

Just leave you a couple grand in the hole. What's your household income? $138,000. Well, that's good news. Okay. Well, the only thing I would know to do is to stop the debt snowball temporarily and pile up the cash to get this transaction done. And then you've got to figure out a way to get the car sold to someone for somewhere in that 36 range, hopefully. And you're going to need another car, obviously.

And so if we budget $5,000, $7,000 or whatever for a car, and we need three for this, you need $10,000 to do this. It's going to take you a couple months to gather that up, right? Yes. The problem is we got a van, which already was humbling, you know. But we have three kids and cars. You know, you bought a Bentley van. I mean, you bought the Bentley of vans, the Honda Odyssey.

Yeah, I know, I know. It's a fabulous car. I mean, Rachel Cruz will sell you one. She likes hers. She could be a Honda salesman, I'm telling you. Is that what she got? It was a Honda Odyssey, wasn't it? In the video, yeah, that was a Honda Odyssey.

Yeah. Sharon, a Rachel's is. Yeah. Yeah, okay, I thought it was. I thought it was, you know. So anyway, yeah, she thinks it's the best course in sliced bread, but yeah. I actually love it now. It just took me a while to realize.

Yeah, I mean, it's that whole thing you move into the van stage of life. Yeah, that's a tough move. It's a midlife crisis looking for a place to happen. But yeah. So anyway, aside from that, yeah, you've got to figure out a way to replace this thing. Now, how much debt do you have other than this? So outside of the lease, we have $95,000. What is that?

Student loans? No, we've got solar panels on our house as well as a HELOC. Okay. And the HELOC is less than half your annual income, right? Yes. Okay. Yeah, so we're looking at $130,000, and you make $130,000. And so if you could be debt-free in two years and keep the car, that might be a possibility, too.

Just keep paying the fleece until you're debt-free, and then once you're debt-free, pay the fleece off early, buy it on out for yourself, and keep it if your wife loves the car and you are thinking the van is cool now. I mean, you could treat it like a car debt. I wouldn't have signed you up for this thing, okay, for a lot of reasons. But you're there now, and getting out of it is going to cost you $10,000 out of pocket in a replacement car minimum, a little $7,000 van of some kind. And you've got this really high income. So what kind of trajectory is your income on?

Is it going to shoot up from here? Yes, it's going to. I'm supposed to get a raise this year. We were thinking of getting out of the lease because now I feel stupid and getting a cheaper car because in the long term, we don't think we want to buy this car. We'd rather get something that we can hold for a long time that we something cheaper. But we wanted to see your opinion. I'm fine getting out of it. I'm trying to figure out a way

is there a scenario in which you keep the thing is what I was trying to figure out, but now that you're there. But if you want out of it, that's how you get out of it. You've got to pay the difference in what somebody will give you in 38. Yes. And then you've got to also have on top of that money to get something to drive. Yeah. So what are you driving?

I have a paid off Toyota Cam camry how many kids do you have we have three kids five three one okay so you're into another used van of some kind right or an suv is something right yes okay all right well you can do this um but you're gonna have to buy a nice enough van that it becomes this as nice as car, that it becomes her car, because the federal law is mama gets a good car. I was just about to say that. That's what I want. I want her to get the good car. Yeah.

So that, you know, it's a $10,000 move here. Okay. So how quick can you scratch together 10K if you stop everything? If I stop everything, that's what we're trying to figure out. I figure we learned that I eat too much, so I got to stop that. Well, that's really not a financial thing. No, no, I eat too much out. I should say eat too many restaurants.

I'm kidding you. I'm messing with you. Me too. Chocolate donuts. But what's that got to do with money? Okay. Now you're getting personal. I think $10,000 we can get done in six months to eight months.

No, I think you can do it in three. Yeah, I was about to say, man. You make $130,000. Right. How much is this fleece payment? The fleece payment is $585,000. That's not as bad as I thought I was going to get $7,000. Okay, good.

All right. Good. Okay. Yeah. it's 585 that's not as bad as i thought i was gonna get seven okay good all right good okay yeah i mean tighten that budget up and let because the quicker you get this thing done the faster you can get started on your debt snowball without the 500 coming out the faster you're going to be out of debt and so i i you know if you're ever going to turn up the heat to white hot intensity you know blue flame level baby it would be to get rid of the van yeah because the fat and the by the way the faster you get rid of it the the the more it's going to bring i mean if you wait six months this car's not going to bring anywhere near what it'll bring today right yeah so we need to get out of this thing pronto yeah as a matter of fact if you have the

ability to borrow the 10 000 i probably would do it and just get it done. Because you're going from $38,000 down to $10,000. Yeah. Yeah, I would go ahead and do that. If you can find a deal where you do a trade-in and walk out with a usable $7,000 van and you eat the three, and so you have a $10,000 loan and that car dealer sets you up with a little car loan, I'd do that deal. Because that's moving down in debt yeah yeah because we're going to go down obviously in a lot of cars a bunch but you're going from but you're going you know you're cutting your debt by 75 on this from 40 to 10 10 i think i

did that math right yeah close enough 30 grand yeah you're right dave this is the ramsey show We'll be right back. In the lobby of Ramsey Solutions on the debt-free stage, Johnny and Ashley are with us. Hey, guys, how are you? Good. Great. Good to have you guys. Where do you all live? Selmer, Tennessee. Oh, cool.

Welcome to Nashville. And over here to do a debt-free scream, how much you paid off? $49,700. Way to go. How long did it take? Exactly 21 months. Excellent. And your range of income during that time? We started out $19,000, and after hearing about this program, made it up to $60,000 a year. Whoa! So how'd you do that? Well, we were always taught this verses in the Bible

about it's the rich man can't make it into the kingdom of heaven kind of stuff. And after starting to listen to you, we heard the other verses that that wasn't evil and it changed our mindset and I run my own business. And so I just went after it. Wow. Good for you. Cool. What kind of business have you got? I run a handyman business. Good for you. That's a great business.

Oh, yes. Always work for that. Always work. And you live here in Nashville? No, Selma. I wish. I'd work at your house, too. Yeah, because I don't know if you know.

Well, I'm not going to bring that up. But anyway, he might need some help is, I'm not going to bring that up. But anyway, he might need some help. That's all I'm saying. I need some help. So way to go, guys. So how did you get plugged in? What started this journey?

Well, so we were probably in like the lowest part of our life. I swore I wasn't going to get emotional. My dad had just passed away. And about 20 weeks later, we had a miscarriage at 20 weeks. And we just kind of continued to spiral down. And he started listening to, or through somebody he heard about you guys and he was like you know oh they're probably you know get out of that you probably have to be rich or whatever and um he started listening you know he went you know well we're we're as low as we can get like how much farther can we go i might as well look at it so he he did. I was the hesitant one. I mean, I was struggling real hard.

But he started showing me some of this stuff and everything. And I don't know. It just gave me hope seeing other people do debt-free screens. And so, yeah. Anyways, kind of went from there. Wow. It's a tough year yeah i'm sorry but uh the good news is is that um but you know it's almost like you can one way to work through the grief is not

to ignore it but uh but also to have something to aim at yeah and you know have a goal in front of you and that that helps you with that process so that's cool and uh and then you go get in gear and make more money than you ever made in your life yeah once we found out that it was physically possible it gave us hope because before we had no hope yeah so why go to work there's there's no reason to and then when i saw your plan i was like oh my god it doesn't matter how much money you make there's hope And so it just gave us that drive. Man, you guys are impressive. I'm so proud of you. Yeah, I took on a job for about six months with a company that I worked for before we got married.

And they took me on for six months. And I did that and homeschooled my girls. Yeah, very cool. Very cool. Yeah. Very cool. Way to go, you guys. So I'm curious, throughout these 21 months, what was the hardest thing? Because you all are making what the average person makes in America.

And we get a lot of people saying, we can't do it. It's hard. It's difficult. We don't make enough money. We don't make a lot of money. But you all paid off $ thousand dollars in less than 24 and less than two years so what was the hardest thing and what helped you push through that the hardest part for me was not going to the beach

um and when people would ask us to go on things you, going out to dinner with them or, you know, just out somewhere to like, you know, the movies or, you know, something else and just having to tell those people no. And they're like, why? And then trying to explain why. And they're like, you know, it didn't make sense to them. You know, a lot of people our age that we grew up with were kind of like, you guys are crazy.

Yeah. You know, I'll never do it. Honestly, it wasn't that hard because when you go from making $19,000 a year, that's below the poverty line. Yeah. And then you triple that. It's not like you say when you make a budget, you feel like a pay raise. We had a pay raise. Yeah, you did.

You feel like you hit the lottery. Yeah. Our lifestyle increased even though we are paying off debt increased. And I mean, because even paying half of our income to the debt, we were still making 30,000 a year at that rate. Yeah. You're still almost doubled your income. Yeah. So so we felt like it kind of made it hard in that sense to not take her to the beach and stuff because we do have more money. And before, we were going to the beach once a year and just using credit cards to do it.

Yeah. Wow. So that's what kind of debt this was? $50,000 was credit cards and what else? It was all credit card and $6,000 on a van. Okay. Wow. Wow.

Part of it was starting my business, buying tools. And the first couple years of my business, I made $15,000 a year. And then we made it to $19,000. And then when we heard about you, it just gave me that motivation to make more. I'm so proud of y'all. Well done. With his business, usually December and January are pretty hard months for us. So this past December and January, I months for us so this past December and January

I mean we had a washer break and everything else and at first when thing we started having things you know happen where you know that was what you would use your emergency fund for um there was the first anxiety that would happen you know oh my gosh and then I'm like wait a minute like I don't have to freak out about this you know anymore like we're gonna be okay we can still pay for anything everything you know and replace whatever we needed to and it didn't put us behind anywhere yeah you guys are on your way man okay you got all the stuff this This is so cool. Well done. So at the end of April, we will have property, and we're going to build a house. Wow. I love it.

We're buying 80 acres. 80? We already have the down payment. $19,000 is $60,000 of income to 80 acres. Yeah. Gracious. Life is good. Well done, you guys.

Well done. That is so cool. Can I rent just a couple acres? Well, we're wanting to do an Airbnb and a wedding venue in a few years down the road, so we'll send you a free night. There you go. I appreciate it, man. There you go.

That's good stuff. I appreciate it. There you go. That's good stuff. Well, very cool, you guys. Well done. Very, very well done. And you brought the kiddos with you? Yep. What are their names and ages? Jenna is nine.

Mm-hmm. Bella is seven. And Lyra is three. All right. Beautiful young women. Very well done. So they've been practicing their debt-free scream? Yep. All right. Let's see it. I love women. Very well done. So they've been practicing their debt-free scream? Yep.

All right. Let's see it. I love it. Very cool. All right. Johnny and Ashley from Selma? Selma, Tennessee. Selma, Tennessee.

Yeah. $50,000 paid off in 21 months, making $19,000 to $60,000. Well done. Great story, you guys. Proud of you. Count it down. Let's hear a debt-free scream. Three, two, one.

We're debt-free! Yay! I love it. Woo-hoo-hoo! Wow. How fun is that? Wow. I mean, Dave, did you hear that? From below, we were below poverty to now 80 acres inland.

Yeah. And no debt. And no debt. Life is good. That's beautiful. Life is good. That is just beautiful. Just permission to go win.

Yes. You have to give yourself permission to win. And that's important. Yes, sir. And sometimes you just need somebody to win. And that's important. Yes, sir. And sometimes you just need somebody to say it out loud, you know, and you got permission to win. You're allowed. It's okay. Oh, my goodness.

Woo. That's powerful. Well done, you guys. So beautiful. What a great story. What a great couple. Yes, sir. They're on fire, man.

Life is good. This is The Ramsey Show. Thank you. Our scripture of the day, Deuteronomy 8, 18. But remember the Lord your God, for it is he who gives you the ability to produce wealth and so confirms his covenant which he swore to your ancestors as it is today. Nelson Mandela said, Money won't create success. The freedom to make it will. That's a lot like that young man we were just talking to. Yes, sir.

I mean, you know, he just had to have permission to go win. Yeah. The Lord your God, for it is he who gives you the ability to produce wealth. Wow. So, very interesting. Very interesting. And powerful. Open phones here at 888-825-5225.

Anthony O'Neill is my co-host today. Chris is with us in Asheville North Carolina hi Chris how are you hey Dave good how are you better than I deserve what's up in your world awesome uh not too much so I've got a last survivor adjustable life insurance policy that my parents put into my name three years ago, and I wanted to get your advice on whether I should keep it or surrender it. I'd like to give you a summary of where I'm at with the baby steps right now. I'm 34, debt-free, make $52,000 a year. I'm going to be done with a six-month emergency fund at the end of May. After that, I want to save up to either build a small garage apartment or buy something. And then I've also got

$1,400 in a 401k just sitting. I'm not contributing to it at all. Are you single? Yes. Okay. All right. Well, this life insurance policy was bought as an investment, not as life insurance. And it's a crummy investment. It has a horrible rate of return, and the insurance portion of it is very expensive. And so I would buy a little bit of term life insurance. You don't need a bunch a bunch maybe a hundred thousand dollars or something just to clean up your estate if something happened to you so nobody had to pay to bury you or something like that and then i would drop this stuff oh so this this policy is insuring my parents not me oh why did they put it in your name? Yes. I guess they wanted me to have control of it for some reason.

So it pays you upon their death. Yes. Whoever dies last. Yeah. Between the two of them. Yes. Are you paying for it or is it it's paid up because they paid so much into it So they paid

$46,000 into it From 1997 to 2013 The current surrender value Is $70,000 And the death benefit is $500,000 Yeah So they're making 2% on their money $500,000. Yeah. So they're making 2% on their money.

Yeah. Okay, so what happens? Let's see. Are you morally obligated to take care of their – is this just to benefit you or is it supposed to you're supposed to take care of their final expenses out of this or what have they got an estate yes okay so you wouldn't need this if both of them passed away to cover their burial right no and i assume you're the beneficiary of their will as well, right? I am. Okay.

Yeah, so basically you have $70,000 sitting here in an investment that's not got a great rate of return is really what this comes down to. Are either one, well, it's both of them. It's a last to die. Are they both ill? No, no, they're both in good health. How old are they? They're in their mid-70s.

My dad is 73 and my mom, sorry, my dad is 75 and my mom is 73. I'm getting rid of it. It's basically a $70,000 investment that's sitting there doing poorly that has a half million dollars attached to it on some 75-year-olds. But, yeah, no. I'm going to take my $70,000 and I'm going to invest it well. Okay. And then that was going to be my secondary question is I want to have a good plan for this money, you know, if I choose to surrender the policy.

So being where I'm at, you know, not only having $1,400 at a 401k at age 34, how would you allocate those funds either to a down payment on a house or a 401k or either or. A 401k is payroll withheld only. Yeah. And so, yeah, I would use a portion of it for a down payment on a house, and I would invest the rest of it in some mutual funds. Okay. Normally, I would just put it all on the house, but because there's a lot of weirdness in the air here

about them having done an investment for you, I'm going to try to honor that with them a little bit, and let's put some them having done an investment for you uh i'm going to try to honor that with them a little bit let's put some of this into an investment so maybe twenty thousand dollars down the house of 50k in mutual funds or something like that okay because they're probably you know they got sold this policy by someone and they think it's a big wonderful thing i don't yeah i wish they had invested forty six thousand 000 for you into something else and it'd be 146 now it's still 70 but yeah and i can sense some a little bit of regret from my dad uh you know in relation to that okay so he's not going to be like his feelings aren't going to be hurt by you

cashing this thing out then no no they've told me that it's mine to do with what i wish yeah that's very healthy that's cool yeah yeah you didn't get a guilt trip with the policy well you know the thing is is ultimately it's it's a gamble on death and that makes me feel bad in the first place that's yeah it's kind of weird but yeah but but you know, but truthfully, from a math standpoint, if they were both in the final stages of stage four cancer or something, then, you know, mathematically, we'd be a little bit cold and weird about it and hold on to it, right? Yeah.

But we don't have that situation. We just need to take the $70,000 and do your life. Let's you do you. And, you know, $ twenty thousand bucks is a down payment you know fifty thousand into some mutual funds and what i mean are you you've seen something else am i missing something no no you're hitting right on it and i like the fat data that you said honor the parents and go ahead and invest 50k now that's one thing i was going to say well if they did that so you can have investments we'll go ahead and invest invest. But, I mean, you went to 50.

I was going to say 50-50. Well, that'd be all right, too. Maybe put 35 in investment, 35 in the house. That'd be okay, too. I'm just making it up here on the spot. That'd be okay. And there's nothing wrong with putting all of it as a down payment on the house. No.

It's just investment. But there's just some sense about this money has been built slowly over time as an investment. And so, yeah, at a bad one so yeah that's what i would do with it good question good question man we appreciate you joining us abby is on instagram anthony i'm a 16 year old and i recently quit my job due to working nights alone oh smart i have the opportunity to get right back into the workforce, but I can also spend my time working on my studies for an upcoming test. This test can determine scholarships and college acceptance. Which should I choose? Clearly, I want you focusing on your tests.

While we was walking out during the break day, we saw one of our good friends, and she literally worked every single day looking up grants grants looking up scholarships preparing for the sat preparing for the act and she when she raised a half a million dollars dave um so that came back to like 500 an hour she was making and so i believe if you can take some time to really focus on preparing for the test getting the sat covered getting the act covered and getting some grants and scholarships on the side to get more grants and scholarships, that is a job, you know, as long as you can do it well.

Now, if you can do that and get a little part-time job on the weekends, I like that even better. But nothing should stop you from focusing on your studies. Yeah. Yeah. Get your grades up and then use the fact that you've got high grades, not for possible college acceptance, but for probable. Yes. And not for possible scholarships, acceptance but for probable yes and not for possible scholarships but to put the hustle on grind like like our friend did there absolutely

with it to go get the scholarships make it your job that is your job yep and it's worth more than you know being a whopper flopper if my kids i'm gonna say this now and i ain't even married but that will be my kids job and if they don't't raise enough money and cash in, they're fired. Oh! That'll work. All right. Thanks to James Childs, our producer, Kelly Daniel, our associate producer and phone screener. That's Anthony O'Neill.

I'm Dave Ramsey. 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. This is James Childs, producer of The Ramsey Show. Did you know The Ramsey Show is one of the most popular podcasts in the world? Subscribe or follow today wherever you listen to podcasts. We'll see you next time.