The Ramsey Show - App - How Should We Be Investing Right Now?

Episode Date: June 2, 2022

Dave Ramsey & Rachel Cruze discuss: The best way to invest, How to move on after losing a spouse, Paying off debt vs. cash flowing college. Want a plan for your money? Find out where to start: https://bit.ly/3nInETX Listen to all The Ramsey Network podcasts: https://bit.ly/3GxiXm6

Live from the headquarters of Ramsey Solutions, 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 choice. I'm Dave Ramsey, your host. We help people build wealth, do work that they love and that matters, and create actual and amazing relationships. Rachel Cruz, Ramsey personality, number one best-selling author, is my co-host today as we take your calls. The phone number is 888-825-5225. John is with us in San Antonio. Hey, John, how are you?

Hey, man, I'm doing good. Thanks for taking the call. Better than we deserve, man. What's up? Hey, so my wife and I, we were 28 years old. We got married when we were 20. I mean, we still had one year of college. Had about roughly $45,000, maybe $50,000 in the bank.

28 now. We have no debt. School's paid off. Um, and we now have about 140 in the stock portfolio. We have about 63 in the bank account. Um, we've got about seven grand in HSA. We've got a Roth IRA that, um, I started with my old employer. So we're really just, I guess I technically am just kind of at a point where I'm a bit stifled as to where we should go financially, where I should reallocate funds. I don't love that the majority of our funds are wrapped up in the stock market. Technically, 37 of that 140 figure is off to the side um but yeah just trying to figure out what would be a responsible thing to do to ensure that you know we're protecting the capital gain but also yeah just move forward in life we would like to purchase a home but she is now a full-time

nurse um she started her nursing program right before 2020. And so she finished her program while COVID was still going on, but now she's a full-time nurse with the aspirations of doing travel nursing. So we don't know if we want to get locked into a home, but we do think maybe buying a townhome or a condo and then later renting that out in the San Antonio area could be a good way to make some, you know, side money as we're, as we're traveling about. So that's kind of, that's kind of who we are and where we're at financially. Y'all have done really well, John, for 28 years old. So yeah, yes, we have. And I honestly, I would say when people ask, I just say we live,

we don't live brutally, but we just live responsibly um you know we're we're just just conscientious of our purchases and yeah we call it we call it intentionally that's what you've been doing you've been really good yeah really like a grown-up and stuff yeah yeah sure and so the and you said the 140 is invested in what was that the whole the whole 140 is not all invested there's 37 grand uh just sitting in the in the stock portfolio that's not being you know put into anything yeah yeah yeah total is yeah 140 just in that in that portfolio what'd you say your household income is? I didn't.

So now that she's a full-time labor and delivery nurse, so she's doing night shifts, so it does kind of fluctuate. Typically, she brings in about $1,800 per paycheck. So, I don't know, ballpark, we're probably now around $80,000, $85,000 a year. We were only, just with my income, we were only about with my income we were only about 45 to 50 um i do maintenance for a chick-fil-a franchise in san antonio okay um yeah yeah you're making 45 to 50 and she's making more than you think she's making the way you added that up i think it sounds like you have 110 000 income to me. Okay.

I mean, labor and delivery nurse that doesn't make $60,000 would shock me. All right, so here's the thing. You've kind of, with good common sense and intentionality, have avoided any big mistakes and created a pile of money. And now it's time to do some fine tuning and get on a system that takes you more rapidly into wealth. Okay? Yes. So that's what I, you know, and the system that we use that we have led millions of people to become millionaires with is called the baby steps and uh baby steps

are to become debt free build an emergency fund start putting 15 of your income away uh kids college if you have kids is baby step five and six is pay off the house early now if i'm doing my calculations right between the stock and the checking account, you've got $200,000 you can lay your hands on. That's correct. I'd go buy a house. You would? Yep. And I'd buy about a $300,000 house.

And then I'd pay off that $100,000 as fast as I possibly can and be done with that. During the time that you're paying off this house, I want you to start putting 15% of your income away in Roth IRAs and 401ks and good growth stock mutual funds. You have underfunded your retirement while you're over here playing footsie with your stockbroker. Yeah, you're right. Okay. So the stockbroker is getting ready to get cleaned out. Now we're going to do a basic simple investing plan because the two main elements i know of millionaires that we have studied for 10 years

is that they have a paid for house and a really nice fat juicy retirement plan and that's the first two elements that get them up over a million dollars and that's where i just took you 15 of your 110 000 going into retirement and a house with only a hundred thousand dollars owed on it you're going to get it paid off you'll have a paid for house by the time you're 31 and then even if she becomes a traveling nurse it'll happen faster go faster but also you have a place to go back but you would you rent that out if you pay it off while they're gone are you going to travel with her no you're going to stay there and work on chick-fil-a right well so that that was the thought i knew it there's also the potential there's also the potential so you know chick-fil-a is based out of georgia and then chick-fil-a's are

all over the place i heard the rumor technically i've i've i've thought about becoming my own llc and then going from chick-fil-a to chick-fil-a which technically i could start doing here in san antonio market i've got just this one franchise and i'm under his umbrella but i going from Chick-fil-A to Chick-fil-A, which technically I could start doing here in San Antonio market. I've got just this one franchise, and I'm under his umbrella, but I could technically become my own entity and then service two to three, which has been duplicated or replicated in other markets, including Florida.

You can't do that if you're jumping from market to market. I mean, you have to stay in a market a while to do that. They don't want you working there for three months, and then your wife changes cities. Sure, yes. And I think that's where it falls apart. So I think ideally, yes, I would love to travel with her, but it would depend on how long the stint is. If it was a three-month or a six-month, it probably is not feasible. Yeah, it doesn't work.

And then it starts to be do i want to be a part that much just for some money and probably yes she may change her mind when you get when you have a paid for a house i'm thinking labor labor and delivery is not a bad gig so um yeah yeah i think you guys line it up the the i'm gonna put set the future of the travel nursing stuff aside for right now the smart thing to do with the track you're on is to get a house and pay it off as soon as you can uh and let's get your retirement started at 15 of your income going into retirement and sit down with one of our smart investor pros they can help you do that at ramsey solutions.com but you guys have done it you've got really good common sense now let's put just a tinge of sophistication

with that and we'll lead you right through this process hold on i'm going to send you a copy of my number one bestseller baby steps millionaires because you're an eye blink from being one if you'll do the stuff i'm teaching you this is the ramsey show People all over the country are discovering a faith-based and budget-friendly way of meeting health care costs through Christian Health Care Ministries. Christian Health Care Ministries, or CHM, is a non-profit organization that helps members carry one another's burdens with health care expenses, and they have successfully shared each other's medical bills for nearly 40 years. See if CHM is right for you by visiting chministries.org.

CHM is a proud sponsor of Dave Ramsey Live Events. Rachel Cruz, Ramsey personality, number one bestselling author, my co-host today here on the Ramsey Show. Inflation is affecting everyone. From the gas pump to the grocery store. And while you can't control what happens with the economy, you can control what happens with your money. When you panic and you freak out and you justify based on the craziness out there that you go crazy, you don't help anything. You have to get really calm, really wise, move a little slower, step away from the Amazon button.

Don't push submit. don't push buy now buy now just add the cart just add the car don't even add don't even have a cart don't add anything to the cart now life is much better see we just controlled your budget now mr bezos budget might get squeezed but he can handle it better than you can handle it the only way to control your money in uncertain times is on a budget the best way to do the budget is with every dollar you plan out your monthly budget give every dollar a name before the month begins and you track all your expenses through the month the every dollar mobile app lets you check your budget from anywhere so you can always make the right money decisions. When you get on a budget, you will be in total control of your money. Start budgeting for free by going to RamseySolutions.com slash every dollar.

Open phones at 888-825-5225. Kelly is in Charlotte, North Carolina. Hi, Kelly. Welcome to the Ramsey Show. Hello to both of you. Thank you for taking my call. Sure, what's up? I am a fairly new widow, a role that nobody really expects to be in,

and I just wanted to take a moment and tell anyone out there who does not have life insurance to get it. Wow. You're not immune to whatever this world has to deal out to you, and no one is immune to the word never. I'm so sorry. What happened? Cancer. Oh, my. How old was he?

He was just 52. 52. I'm so sorry. How long were you all married? 25 years. We were 10 all married? 25 years. We were 10 child during the Gulf War. So hats off to the former people who had their doing their debt-free scheme. It's an amazing role.

Yeah. But I just wanted to, I'm having trouble kind of grasping and honoring the work that he and I both did to have what we had to put away to roll over to IRAs and what have you into retirement and watching it go in the market that we're in now. I've, you know, I've lost a little over 11% so far in what I had. And I know that that's not near what others have lost. I'm very blessed in that regard, but I'm just having trouble. Did you sell it? No.

Then you haven't lost it. No, no, I didn't sell it. Your value is down, but you haven't lost any money until you sell it. Correct. Okay, I'm with you. And I know that from listening to you. Yes, sir. I know that from listening to you. sir i know that from listening to you

how much money is how much money is in this account kiddo just shy of 400 000 okay cool good and what do you make um i i make 40 okay when did he pass about a year ago about a year and two months ago okay and was there life insurance in addition to this $400,000? There was. It wasn't 10 to 12 times his income just because I had always asked him to get life insurance every birthday, every Christmas, that kind of thing, and he finally did a year before. So when we were able to, all we could afford, and given his health at that point, it was about half of what it should have been.

So how much life insurance was there? There was $500,000. And where is that? With that, I have paid off the house and I paid off all of our bills, including all the medical bills. Paid for the funeral. I gave some money to his family, and I also have some set aside to get our last child through college. You gave some money to his family? Yeah, they were estranged, and I just felt like it was something I needed to do. So I gave some to each of his siblings.

Wow. Okay. How much did you give estranged siblings? I gave each of them $5,000. Okay. So $20,000 total. Okay. Wow.

All right. And so after you did all of that, is there any of that life insurance money left, or is it all there? There's still some left. I have what I need to get my son through school, and I have some for upgrades I need to make. Not upgrades, but things I need to do around the house. Gotcha.

Can you live on what you make? I'm squeaking by. I am having trouble trouble getting the 15 each month for retirement you know toward retirement but um hopefully I'll be able to squeeze things and make it make it happen what do you do Kelly for a living um well I was trained as a copywriter um advertising marketing writer and then I came home to be with the kids. I did some freelance. And then when Stephen got sick, we were having trouble paying for the medical bills, so I went back to work just in an admin role, and that's where I've been for about five years. Okay.

And I'm sorry. I've been writing this stuff down, trying to crack it in my head. Again, how long ago did he pass? A year and two months. Okay. All right. I'm sorry for what you've been through. You've done a really, really good job in a very tragic, stressful situation.

You've really done a good job. I'm sorry? It's a COVID response, too. Yeah. Yeah. You've just done a really good job. I mean, it's hard to be as smart as you've been while you can't breathe. And you got, you know, the grief that you've been dealing with and everything.

I can still hear it in your voice, but you still made good, wise decisions. Well, and I thank you for that. Well, I didn't know you did. I know, but I couldn't have done it without your leadership in it all. So let me just say that. Okay, so here's what I would tell you to do. Let's not put money in retirement for one year. Let's just push pause on the baby steps okay and that'll give you time to

get your career adjusted get your income up get your budget dialed in to where you can breathe a little bit and just give yourself room to cry a little okay okay we don't have to tighten everything up and do everything perfect you don't have a house payment you don't have to tighten everything up and do everything perfect you don't have a house payment you don't have any payments you don't have anybody bothering you the kid's college is covered all your financial stress is gone because of the work that he did you did and that's the way you honor him as you continue and play through. There's not a certain movement or a certain rhythm that's different. The way you honor it is you go, this is what he would have done if he was here. This is what we would have done if he was here.

And so that's the way you honor him is you play on through. Now, what I do want you to do is give yourself a little room because you've not given yourself any room to breathe yet i mean you've been just hanging on hanging on pushing dialing in trying to do the right thing fighting cancer and then and then fighting grief and then you know collecting money and then from the insurance then paying off the house and you've just been execute execute execute execute breathe stop relax for a year and give your heart that is broken time to heal. Then you'll have plenty of time to start your retirement. Now, let me tell you what's magical about this. If you have the 400K that's invested in good growth stock mutual funds,

if it averages 10% every seven years, it's going to double if you add nothing to it. So you're 52. At 59, it'll be 800. At 66, it'll be 1.6. So you stopping retirement for a year, it's not going to bother a thing. At 73, it's 3.2. Okay? You stopping retirement for one year is not going to cause you to retire broke

i don't want you to stop it forever i do want you to get back in the rhythm of investing after your broken heart is healing a little more but right now i hear a lady who hasn't stopped yet and had time to cry enough are you hearing that yeah i mean kelly you've done a phenomenal job but i think just taking a break break resting, I think, is wise advice. And it may clear your mind and maybe even get your income up during the year, too. I think you'll probably reassess your career while you're doing this this year. I think that's what's going to naturally happen. It's part of your healing. Thank you. Rachel Cruz, Ramsey personality, is my co-host.

Open phones at 888-825-5225. In the lobby of Ramsey Solutions on the debt-free stage, Zane and JC are with us. Hey, guys, how are you? Good, how are you? Better than we deserve. So, how much debt did you two pay off? $30,000. Good.

How long did that take? Just barely over a year. One year. All right. And your. How long did that take? Just barely over a year. One year. All right. And your range of income during that time? We started at about $100,000 and ended at $175,000. Good. Nice.

What do you all do for a living? Me and my dad are in the used car business. Been a good year? Mm-hmm. Best year we ever had. I bet. And I'm going to grad school. I'm currently a stay-at-home mom but um i'm

finishing my degree okay very good good so where do you guys live popper bluff missouri all right good good what kind of debt was the 30k student loans mainly we had about um 27.5 and uh student loans and then the rest of it was credit card debt. Okay. And it was you? He's pointing at you. Yes. Yes, unfortunately. He actually, he was big into all of your books and everything beforehand, so he graduated debt-free, so most of the student loans were mine. Okay.

And so how long have you all been married? Two years. Okay. So a little after marriage, you come home and say, we're doing this, we're getting out of debt. It took him a little while to get you figured out how crazy he really was what you had married into tell me the story what happened well i actually had known beforehand that he was really into this um because we did fpu when we were dating oh wow yeah so uh you're hardcore thing

yes he broke me in so we were the youngest people in the room. But yeah, so we did FPU and then we went to actually it was the marriage and money event that Rachel had put on a couple years ago. So yeah. So we went to that and then we really wanted to pay off debt prior to being married. So we went ahead and took care of the credit card debt prior to getting married. And then afterwards, we wanted to wait to have kids. We wanted to actually go ahead and have all of our debt paid off before then.

But life doesn't work that way. And we ended up getting pregnant with our son. And so we tried to pay off as much debt as we could before we had him but we did take a break and we cash flowed his birth just in case yeah good good and you're cash flowing your work your master's right yes okay good of course you are yeah very good good for you guys how old are you two 25 and 24 and you're everything's paid for other than the house other than the house everything but the house good that's amazing how's your feet really Mm-hmm. Other than the house. Other than the house. Yeah. Okay. Everything but the house. Good.

That's amazing. How's your fee? Good. Really good. What do you tell people the key to getting out of debt is? You did it. $30,000, man. Mm-hmm.

You know, being on the same page and contentment is probably the biggest thing. I think discipline, too. I think it was really interesting for me. Like Rachel always talks about budgeting like you're spending money because that was a big thing between us on our budget and i always wanted to have that for myself just in case you know for self-care but but yeah just including that in the budget was important for me to make it's to make life realistic right in this process because yes you want to sacrifice

your lifestyle and get ahead but also you want to be realistic of living today right so that's amazing you guys great job so did people think y'all were crazy i'm being so young and i wonder if people what your friends said well we didn't really talk about it a whole lot but yeah i don't know that anybody ever said we was crazy i don't think they said we were crazy they just they were not on the same page especially a lot of kids our age you know they're not really into you know doing that or paying off their student loans you know so that was one thing that it was different that we were doing than other kids our age yes for sure for sure amazing amazing you guys who are the biggest cheerleaders i'd say our family probably yeah okay good way to go you guys way to go awesomeness you're heroes man thank you and

you got a new baby that come in the picture right and uh what name and age hudson and he's 15 months all right 15 month young guy i love it perfect perfect. That's a lot of fun. They're a riot at 15 months. Yeah, I'm telling you. We got a couple of them hanging out around there. Old Charles is about two, and his little cousin Eli is about one. So, yeah, they're hanging out. A lot of drama. Yeah, it's good stuff.

Good stuff. A lot of fun. Well, you guys are fun. Congratulations, heroes. Thank you. You did it. You did it. You did it.

You did it. You did it. You did it. You did it. You did it. It's very, very important. Very cool. So in the used car business, what are you seeing with the prices? Straight up? Yeah. Up until probably maybe a month, two months ago, we were on nothing but a straight upward

path. But I think we've started to level off again. Okay. So the increases have stuck so far. It hasn't come back down. It's starting to come back down yet. Yeah, I haven't seen that. Okay.

And there's just more supply now, more stuff available. I wouldn't even say that. I mean, maybe the interest rates and gas prices and stuff. A little bit of uncertainty right now. Slowed everything down. Yeah. We'll see in the next quarter how it does. Gotcha.

Okay. Good. Fun. I'm glad to get a little insight from an expert here. I know. I'm just seeing that mom up there. I don't know about that. Oh, yes.

I see her, and she's like, okay, we got this. We got this. Yeah, I'm like, let's just make it a couple more minutes. You can do it. All right. We got a copy of the Baby Steps Millionaires book for you. That's the next chapter in your story. Total Money Makeover book and a year subscription to Financial Peace University.

And every dollar plus included in all in a Ramsey Plus subscription. So we'll get all of that to you. Way to go, guys. Very proud of you. Well done. Zane, JC, and 14-month-old, was it? Hudson. Poplar Bluff, Missouri.

$30,000 paid off in one year, making $100,000 to $175,000. Count it down. Let's hear a debt-free scream. Three, two, one. We're debt-free! We're debt-free! Yay! So fun.

So fun. That is so great. Very well done. The two guys were just chatting about cars and the car market. I see her. She's like, okay, we can do this. We can do this. He's not going to melt down.

He's not going to melt down. Oh, sweet thing. On national radio. I know. He did good. He did good. So good. He was looking around trying to figure out what he did that he got clapped for.

Yeah. Because all the audience was clapping out in the lobby. So good stuff. So great. Very cool. So good stuff. So great. Very cool. I love it. Love it, love it.

Well, I feel like all the debt-free screams this show, it has. It's been a range of incomes, a range of debt levels, but it's still that consistent what we see time and time again when people choose to change their life, change their money habits, change the way they've been doing what they'd always been doing, and they actually work the plan. Together. Together. Together it works. There's always this together thing. There's always the plan thing.

And there's always this commitment, a switch flips to commit to follow through. That's right. And do it. You have to, as a friend of mine said to me, he said, I've been following your stuff for 10 years and I never did it. And he said, then I made the decision to submit myself. That's a strong word in a culture where no one is allowed to tell me what to do. Submit yourself to a different way of doing things. You're continuing to do the same thing over and over again,

expecting a different result is the definition of insanity. Submit yourself to a new way of doing things. And it changes everything. Absolutely. Absolutely. Yeah. So I, you know, it's been widely reported by me that during COVID, I got unbelievably fat. And I ate every donut in a 50-mile radius. And so I had to submit myself to a different methodology on eating. And, you know, I got a hold of an app and I started counting calories, counting steps.

And I started walking and running again. And I haven't missed a running or walking day in 780 days. Good? No. Promise you. I can show you on the app. Is that Dave Math? No, not Dave Math at all.

I haven't missed a single one. That's impressive. No, I take that back. I missed three days when I was sick with COVID. Okay back. I missed three days when I was sick with COVID. Okay. I did miss three days when I was sick with COVID. That's a good excuse. I was in the bed.

I'll give you that excuse. That's amazing. Snow, rain, sleet. I don't miss because I don't want to break the streak. Yeah. And I have consistently logged now 2,300 meals consecutive. Do you track every meal? Every meal.

And consequently, I lost 42 pounds. What did I do? My point is, not to brag on me, I submitted myself to a system that exercise and less intake of calories. And it's magical. You lose weight, isn't it? I mean, whoa, where'd you get that idea? Live on less than you make.

Live on less than you make and you'll have money. Whoa, where'd you get that idea? You know? Live on less than you make. Live on less than you make and you'll have money. Whoa, where'd you get that? Man, you guys ought to like do a podcast. Yeah. This is The Ramsey Show. Thank you. Our Scripture of the Day, Hebrews 12, 14. Make every effort to live in peace with everyone and to be holy. Without holiness, no one will see the Lord. Ben Franklin said, a good example is the best sermon.

Amen. Nathan is with us. Nathan is in California. Hi, Nathan. Welcome to the Ramsey Show. Hi, guys. Thank you for taking my call. Sure.

What's up? So I'm 19 i live with my parents and i'm just trying to tackle my car debt my parents send me up for a car loan like when i was 18 and so i have 12k left of it it's a good car i mean it's not like fancy and i'm just wanting to pay it off and then i'm wanting to pay for my college in cash. So my question is, how much money of my income should I save to pay for my school in cash? And like, should I save more than that? Or should I save just the amount to pay for my school? Yeah, that's a great question, Nathan. What kind of job do you have right now? Right now, I just have a part-time job. I'm working at a brewery, but it brings in like a good amount. I get like $2,000 from it a month.

Okay. What does it take to go to school? I'm splitting it with my mom every semester, so it would be about like $1,200 for my portion of it. That's the tuition? Yeah. And you're living at home? No other big expenses? Books? Yeah. And you're living at home. No other big expenses? Books.

Just my car and then obviously insurance, and then they make me pay like $150 just for rent. How much could you get for the car now, Nathan? Like how much is it if I sold it? Yeah. I think it'd be like 7 000 and obviously i'd still have to pay oh 12 yeah i owe 12 on it that's not possible you screwed something up you didn't buy you didn't buy it one year ago and it has gone down that much. During the last year, used cars have gone up.

Did you pay $12,000 for it? No, no, no, no. The loan has $12,000 left on it. No, it doesn't. You're confused. What did you pay for the car? How much was the car new, Nathan? Do you know? We went to the dealership, and I remember it being $ i remember being 14 and now it's at 12 like that's my remaining balance okay then it's not worth seven it's

probably worth 12 or 13 oh you're right you're right yeah yeah okay yeah one of these numbers was wrong dude that's what i was trying to figure out okay so all right so you got a car that you owe what on it roughly on it what it's worth, and you're making $2,000 a month, and you're responsible for $1,200 of tuition plus books plus gas plus $150. Right? So you can save your tuition every two months. $600 a month out of $2,000 going towards tuition.

Every two months you'd have a tuition payment. Now, the $1,200 is one semester, and you're going two semesters or three a year? I'm going just two semesters a year, yeah. Okay, so you need $2,400 for tuition, correct? Yeah. Per year. $2,400. No, $2,400. $1,400. $1,000 or $1,000? Yeah, $2,400. yeah per year 24 000 per year no 2400 100 100 or 1000 yeah 1200 my comma was wrong in my notes

1200 plus 1200 2400 and you're making 24 000 a year and you need 2400,400 to go to school. Correct. Okay, so you should be able to pay the car off and go to school in one year. Perfect, yeah. So how much do you think my monthly payment will be on the car, like $1,000? $1,000 a month. Perfect. And you'll be done in one year. Let's just do a little math, okay?

Let's take $2,000 minus $1,000 a month on the car. That leaves us $1,000, okay? And if we're going to put the tuition out evenly over 12 months, we would need to save $200 a month to have $2,400 for one year, correct? Correct. Okay. So that leaves us $800. Minus $150. year correct correct okay so that leaves us 800 bucks minus 150 you following me for rent i'm doing your budget in front of you okay sure for sure another 150 for my car insurance okay well so let's just take 300 off 800 now we got 500 you still got to buy gas

still got to buy gas and you still got to buy books yeah and you're going to blow a tire that's good yeah so but it's probably not going to be quite that smooth that you do an even 200 a month for the uh the uh tuition because you're probably going to have to do like $600 and $600 over two months and then not have any tuition savings and put the difference towards your car. So put a little less on the tuition savings months on the car and a little more on the non-tuition saving months. Have four tuition saving months of $600 a year. Right, that makes sense. And then I have some,

I have around like 3,000 in my savings right now that could go towards the tuition as well. Oh, okay. Or do you think some of that should go to... Then we don't need

to worry about tuition. We got tuition covered for a year. So for right now, let's start putting 1,200 a month on the car until the car's gone. You'll be done in 10 months.

Okay. That doesn't figure out like me taking stuff out of my savings and it's like, then it's going. You'll be done in 10 months. Okay. That doesn't figure out, like, me taking stuff out of my savings, and it's like, then it's going to be around to, like, $1,000 once I'm done with this year's school, and it's like... Yeah, but no, if you have $3,000 and a year's school's $2,400, you'll have $600 left, and we'll have paid for school,

and I have a paid-for car in 10 months. Right, right, right, right. That's true. But you're saying it doesn't feel like enough is what you're saying work more right right yeah i just don't want to get too much like because um like i don't i don't want my savings to be too low you know because you say a thousand i mean i know it feels like i didn't say take your savings down to a thousand i said pay your tuition out of your savings.

But then that would take it down to $1,000 is what he's saying. Oh, no. You need to just pay your tuition out of savings, and you're not going to go below. Because, dude, when's the next tuition payment? Fall? July. Okay. July. Okay, July.

And then when's the next one after that? I believe January. So, yeah, I got plenty of time. Yeah, so your car will be paid off before you have another tuition payment after July. So you won't go below. Best news all day, Nathan. So all we're doing with you, sir, is we're just walking you through planning all this out on paper. And when you plan it all out on paper, I don't care how how many zeros are involved your peace level goes up and your stress level goes down

and that's all we're doing here because you could you could hear it in his voice as soon as we start going oh there's a way to do this dad come well and here's the deal too nathan you're 19 and from the information you just gave me i bet your parents are wonderful but they signed you up for a car payment at 18 so they're probably not well they're probably not like on this plan possibly yeah i think uh so all that to say though nathan at 19 number one i applaud you for calling in and number two i think you need to go through ramsey plus get you a membership uh if you hold on the line austin will pick up and get you a year you're gonna membership yeah yeah we'll give it to you. Don't charge him for it because he's stressed out about it. No, we're not charging.

No, no, no, I'm giving it to you. Because in it is going to be every dollar, which is going to be the budgeting app. It's going to be Financial Peace University. And you want to soak in, be a sponge, Nathan, to this money stuff. Because if you didn't grow up with it, you're kind of flying at the seat of your pants and figuring this out, right? So replay this call when it comes out on YouTube

and continue to just know okay here are my numbers here's what's going on and be intentional nathan this stuff is easy to understand it it's not going to be that difficult i promise doing it and living life out of it is hard because your behavior has to change and you're going to take on these new money habits but the beautiful thing is you're doing it at 19. Yeah, Nathan, you're not out of control. You are very mature. You're thinking ahead. You actually called a show like this.

You work hard, and you have reasonable tuition and a good living situation. You have everything in your favor. You're going to win. You're going to win big, But just be doing it on purpose. Lay everything out. Map out these cash flows out of 12 months out, and that will show you. All I've got to do is execute then. By Christmas, dude, your car's almost paid off, and you're done.

I mean, this is where you're going to be. So you're going to be just fine. You're doing really, really good. That puts us out of the Ramsey Show and 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. Dave here. You can find all of our shows with the Ramsey Network app on your smartphone. It's the only place to listen to the entire back catalog of episodes. Download the Ramsey Network app in your favorite app store today.

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