The Ramsey Show - App - How to Approach an Employer Who Is Underpaying You (Hour 2)

Episode Date: August 18, 2020

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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. Chris Hogan, Ramsey personality, number one best-selling author, is my co-host today here on the air as we talk about your life and your money. Open phones at 888-825-5225. That's 888-825-5225. Michael is in Oklahoma. Hey, Michael, how are you? Hi, Mr. Ramsey. I'm doing better than I deserve. How about yourself? Just the same, sir. How can we help?

Well, I've been listening to you, you know, your little mini shows on YouTube for the past about two months. Came a little late to me. I'm 26. In February, I started looking for for a vehicle a more dependable vehicle and my brother's a car salesman um yeah i went there with a budget and uh came out with a car yeah um yeah i found a truck i liked um it was outside my budget i left i come back the next day uh my dad and brother have a surprise for me they went ahead and got it and my dad did it under his

um you know took a loan under his name and so now i'm obligated to pay it and uh it's way out of it's 200 over what my budget was originally and i'm it's making out of, it's $200 over what my budget was originally, and it's making me bleed like a pig. Yeah. Well, thanks, Dad. Wow. So when are you selling it? And, you know, I want to sell it.

I think that's what I need to do. Yeah. It came from a place of love, and I think he wanted me in a nicer vehicle, but it's just not working out for me. No. Wow. Okay.

So, you know, the answer is to sell it. And I had one more question if you have time real quick. I'm a diesel mechanic here in Oklahoma. Are you there, Mr. Ramsey? Yeah, we're here. Yeah, go ahead. Sorry, guys. And I'm working for my boss, and I've been working for him going on two years

and haven't had a pay raise. So I'm making $12 an hour as a diesel mechanic and how do i approach him about you know that yeah have you got any of the certifications as a diesel mechanic or you've just been working there with him no uh i was in the navy previously i was an aviation structural mechanic and before that i went through in high school and uh went through vo-tech and got all my asd certs sounds awfully cheap twelve dollars an hour like way cheap and uh what's that i mean what i mean i think i know these guys making 60 or 80 grand with what you're doing don't you uh yeah the ones out in the oil

field are making a lot of money they're making more than that no yeah but i'm talking about just a straight up diesel mechanic you know plus or minus some overtime anywhere from 60 to 90 is the ones we're running into michael do you have any uh openings have you done any research on other availabilities in that market? A bunch of indeed. And, you know, there's openings. I just stay so busy. And my budget is so tight that if I take a day off, I'm shooting myself in the foot.

So it's kind of like I can't afford to do it, but I can't afford not to do it. Okay. Have you investigated what the openings are paying, Michael? I mean, they're starting out at $15 an hour, you know. So, I mean, they're starting out more than where, you know. Which is still low. That's still low. Yeah.

I would say this, buddy. Here's the thing. We've got to get your confidence back. So, first of all, let's get rid of this truck. Let's go find out exactly what the payoff is for a 30-day period. Go look up on Kelley Blue Book. Get intentional about getting this thing out of the life. Go ahead and have the conversation with your dad and let him know, hey, this is not something you can afford.

Point blank. And don't go backwards there. The other thing I'd do is I'd go sit down with their employer. Let's be adults. Be straight and talk about, hey, this is where I am. This is what I'm striving to do. What more do I need to show you? What can I do?

But, Dave, I think he's got to. Here's four job offers in the open market that pay $15 to $20 an hour. Yeah. And you're paying me $12. And I'm not threatening you. I'm just saying, what have I got to do to be worth that to you? Because I don't really want to look elsewhere. Boom. And if someone comes in and sits down with me as the owner of this company and says, hey, you know, I do this for you. And there's a whole lot of people paying a lot more than that. I mean, I may say, well, you probably ought to go talk to them. Or I might say, gosh, I guess I'm underpaying.

Let's look at it. Right. You know, and we'll do a little compensation study. We do regular compensation studies around here, but a lot of small businesses don't do that, and they just overlook it. And then they look up and they lose somebody good because they didn't have a conversation. Well, and, Dave, the other side of it is that you have the person that's on the team that's having this feeling that never outwardly communicates it so they never give the person a

chance but don't bring don't come in and say i think i'm worth more money no or demanding come and don't be belligerent but come in and go hey look here's three things in the paper right that are paying 15 and here's one that's 17 here's one that's 20 and you know this is what's out there and it just feels like 12 is not the market anymore and i tell me what i'm doing wrong that or what i need to do more to get to be worth what those are paying because i don't really want to answer any of these ads i like being here boom and that's a you know somebody does that with me as the employer i don't they don't get any shame from me they go it may be a wake-up call it might be i go you know, if somebody does that with me as the employer, they don't get any shame from me. They go, oh, it may be a wake-up call. It might be I go, you know what, we just don't have it in the budget to do that.

If you can get that, you probably ought to go do it. That's right. That's what's good for you. I've told people that, too. And you might hear that. He might be going, $12 it, dude. But at least you can get it out there. And that's how you approach them.

You approach them with evidence and with humility and with open communication. And if an employer does not react well to those things and is inappropriate or angry or something, then that means they're a jerk. It doesn't mean you did it wrong. But let's get your headspace back because so many people will play this over and over in their head instead of verbalizing it outward. Be proactive. Johnson's in San Francisco. Hey, Johnson, how are you? I'm doing well. How are you, Mr. Ramsey? Great. How can Chris and I help?

Thank you so much for taking my call. So I'm a 24-year-old college student, and I was raised in a family who was not great with finances. So I made a lot of credit card mistakes in my early twenties. And pretty much I had 13 credit cards, all defaulted to collections. I paid a deposit on a debt relief consultant who was going to be in charge of negotiations and pay to delete and credit rebuild. But I realized after watching your videos, I can do them myself. And I really want to take control of my finances this year. So I learned your system, and I should be finished with baby step number one this week. Good. And, yeah, thank you. And, however, my question was, I only have three of the collections showing up in my credit report.

Do I only worry about those three? No, you've got to get them all. They're all going to show up eventually, and they're all debts that you legitimately owe. Yeah, and you got to go look at all three credit repositories, TransUnion, Equifax, and Experian. Don't just go with one. Get a tri-merge of all three so you can see what's going on. Then you can do debt verification.

Then you can start to deal with them, my friend. You got to clean them all up. And stop thinking you can hand this off to someone else. You need to handle this. Don't pay your company. He's doing that. Yeah. You got this.

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Better than I deserve. What's up? So, just have a question. My wife and I just recently got into a business, a business, and we're making more money than we've ever imagined in our life. Wow. Good for you. What are you making? No, it's a, it's a true blessing and we're super grateful and, and know just God has continued to bless our, our family.

How much are you making? Coming from, excuse me? How much are you making? Um, let's, uh, uh, probably this year we'll probably, this year we'll probably do more than 500 wow good for you man congratulations so thank you thank you thank you um but again we're we come from uh i did military for a long time so we had that and then so come from very humble um beginnings and so now that we're making this income we follow a budget but we give ourselves a very um i can't think of the word but we just give ourselves very modest budget and we feel bad spending money and at this point we're just like

we put all this money to the side and we're like we're giving we're putting in for retirement we're doing those type of things saving up up for our kids' college fund. What else should we be looking to do with this? Very good job. Well done. Well done. Well, Randy, Chris and I have worked with professional athletes and artists and so forth over the years and other just uber-successful people with huge incomes.

And many of them struggle with this because most people didn't start out with this. And by the way, thank you for your service to the country. And I'm glad that you have become uber successful with your income. And so what we teach people to do is come up with a basic budget, not a modest budget, but a basic budget. Like we were with a football player a while back chris and i were sitting there and we just got a yellow pad we just did it right quick and um he's like you know he's kind of a tightwad guy he didn't want to spend any money and he's making serious bank and we said all right what is a good budget and he said oh fifty thousand dollars a year and i went

no dude you're making millions shut up okay fifty Okay? $50,000 a year is stupid. You need to have a better budget than that. A budget where you can have a decent, enjoyable life without, and you can do the funding of the retirement, funding of the kid's college. You can, you know, repurchase a car every so often. What's the budget? I think we ended up with him. We finally got him up to $120,000. Yeah.

$10,000 a month. Pulled some teeth, but we got him there. But he was like, he's like making like $800,000, $900,000 a year. Right. Right. Right. Right? Right. Same as your situation. So we set a basic budget, and this is what Sharon and I do, by the way, as well, because

we've got a good income. And so we set a basic budget like that, and then we run our household on that. Then everything above that, we apply a percentage formula to it. We're Christians, so we put 10% tithe. The government takes 40%, so that's half of it. Okay, the other 50% we spread across three things. Lifestyle increase, in other words, fund money. Extra generosity, outrageous generosity, and extra investing.

So you've got 40% for taxes above your budget. You're going to give away 10%. That leaves you 50%. So divide that 50% up and spend something on extra fun. So here's an example. If you put 10% on extra extra lifestyle that would give you your regular household budget and 50 grand to blow on cars trips or whatever okay and then that leaves you still 40 to invest and to split up among outrageous generosity so every time i get a check from a

publisher i got one today total money makeover check came in today, and that's always a good day. And that check came in today. So, you know, what I'll do is it's real simple. I just apply that formula to it. 10% tithe, 40% for taxes has to be set over for him. Think about it. And then I'm going to put my percentage on investing, my percentage on increased generosity, and a percentage on increased lifestyle. And what you'll'll be amazed is is that you actually get to enjoy the money on the increased lifestyle the giving you'll be uh you'll be thinking about it more because it's allocated it's already kind of like doing a budget it's already spent and so when we do that it frees people up it really does and randy it'll free you up too my friend and i think you and your wife sitting down and making that list of goals of the things you're looking to do or maybe the trips you're looking to go on,

what it'll do is it'll help you kind of get out of your head and get on the paper and say, hey, this is what we're excited about, or the room in the home that you're going to renovate or whatever it is. It makes it more practical, and it makes it more exciting. Yeah, I got a buddy of mine that's building Habitat houses out of his outrageous generosity. And so every time he gets a big old check, he gets more excited because that's that many more Habitat houses he can do. And see, that formula I just used will work with $5 million a year. It'll work with $500,000 a year. Right.

I love it. Thank you so much. I appreciate that. And we were just talking about last night dreaming in HD during the talk recently. There you go. Yeah, buddy. Trying to set up that date where we can dream in HD and really put the picture. And what you're doing now is a different level of dreaming.

Yeah. Okay, this is now legacy dreaming. Some people are dreaming about when they're out of debt that they finally get to go on a vacation. Okay, you're way beyond that we're talking about completely changing your family tree massive amounts of money into some a couple of ministries to completely reshape your community with your generosity i mean you like you talk about a guy starts building multiple habitat houses this is a guy that's fired up okay or you know you start buying tractor trailer loads of bicycles to give away in the inner-city area where people are struggling with the ministry there. And it's not two bikes.

You're starting to do stuff with scale because you've got the capacity to be outrageously generous, outrageously change your legacy. And it works beautifully. Hang on. I'm going to send you a copy of the last book I did, which was Legacy Journey, which is all about living in that level of thinking. And it's a different place to get. Your brain works differently. It really is. And for those of you out there, you're hearing him say, dream in an HD.

I talked about that in my first book, Retire Inspired, dreaming in high definition. Like, you can see the details in a high-definition TV. I want you to see those kind of definitions in your dream. But we can't just dream. We want you to see those kinds of definitions in your dream, but we can't just dream. We got a plan. So go over to my website, Chris Hogan, three 60.com. And I'll talk to you about having that dream meeting, but I'll also show you the RIQ, which is the retire inspired quotient free tool to help you identify how much you're going to need to live those dreams. Yeah, it's important. And I think what I'm pointing out there is, Chris, you know, what happens is as you reach different levels of wealth, the first one is just to get debt free so you can breathe.

Right. I'm debt free. You do your scream. Right. Then you got your emergency fund. Your dreams start to change. Yes. Because for so long we lived just hand to mouth in survival.

Yep. And your dream was Friday. Yes. You know. Yeah. And then your dream starts to be Christmas. And then your dream starts to be, you know, I'm paying cash for the kids' college. And then your dream starts to be, you know, and then your dream starts to be.

They grow. And they should move at different levels because otherwise, you know, you don't have anything to reach for and you get bored. That's exactly right. And then you lose that motivation. Hey, we were talking about the bicycles. Remember the entree leadership thing we did down in Florida where we put together bikes? Yeah, I'd forgotten that.

And we brought these kids in and the little boy that I had had never ridden a bike. And so the bike that I worked on, thank God, there were other people there to make sure the bike stayed together. But I got a chance to kind of help him with that bike and kind of riding around and I just I'll never forget that that was a moment that I know those kids will never forget but also those leaders there being a part of that don't never forget that that's very cool it really was that kid was scared to death he had to learn to ride a bike just because he wanted you to let go of the seat. Let me go! He was not going to fall. Let me go! I had it. I was strong people. I was strong.

He said, I was scared to death. That was a lot of fun. It was. We did a team building thing. We brought a bunch of bikes in and everybody had to jump in random teams in this leadership thing and everybody had to put the bikes together. I forgot. That's like five, six years ago. It really was. And then we had the kids lined up to come in and get the bikes

man and uh that was just a little small it really wasn't any scale to that but it was a it was a good leadership activity and then you you know you put the icing on the cake with a generosity that's right that's exactly right yeah that's fun good stuff this is the The Dave Ramsey Solutions on the debt-free stage, Matt and Sarah are with us. Hey, guys, how are you? Doing good. Cool. So where do you guys live? Huntington, West Virginia.

Oh, fine. Right outside Huntington. Yeah, good. Well, welcome. Good to have you guys. And all the way to Nashville to do a debt-free scream. Yes. How much you paid off?

$75,439. All right. And how long did that take? About two and a half years. Good for you. And your range of income during that two and a half years? Probably a little over $100,000 to about $130,000. Okay, cool.

What do you all do for a living? I'm in outside sales, outside sales management. And I'm a preschool teacher. Oh, cool. Very good. What kind of debt preschool teacher. Oh, cool. Very good. What kind of debt was this $75,000? We had a little bit of everything. We had student loans, a couple cars at one point, a personal loan, a couple credit cards.

You're kind of normal. Yep. Just bopping along. How long have you all been married? It was 18 years in july okay cool so what happened two and a half years ago set you on fire i think the biggest thing for me it always been something i thought about but one thing that kind of triggered something for me was about four years ago i'm a runner and i broke a bone in my leg. And my outside sales position is 1099 position,

so if I don't work, I don't get paid. And I just happened to break the bone in my left leg so I could still drive. So for six weeks I got out and did outside sales on crutches. But it made me, you know, it scared me. It made me realize what if that had been the other leg. We would have went six weeks without an income, and we wouldn't have made it. Yeah, that wouldn't have been good. So what happened two and a half years ago that got you started on this plan?

I think that was when we started getting really serious about it. Okay. I guess, you know, for a while we had, I guess, done probably what would qualify as day-vish. So you'd heard about us and what we teach, but you're just doing part of it. Yeah. Right. I actually bought the book about eight years ago, just kind of skimmed through it and then put it down. And made a good coaster.

Right. On the coffee table. Right. Sarah, what was the biggest sacrifice for you? I think just not being able to shop whenever I wanted to, using the credit cards, things like that. I gave all of that up. What do you all tell people the key to getting out of debt is now that you did it? Just to stay focused. Just keep going.

Find something that motivates you because there's going to be times when you don't really feel like saving money. You'd rather go out and spend it. Okay. So who started this? Which one of you? I think it was kind of a joint decision. A little bit of both. Really.

Yeah. She bought the book first, and, you know, she talked about it first probably uh i spent in outside sales a lot of time in my car and i quit listening to the negative doc radio several years ago and started listening to podcasts oh cool okay good for you all right so uh eventually the book comes off of the uh coffee table right and uh got the little ring on it from the coffee, coffee, cup of coffee sitting on it. And you guys get it open and then you just start it two and a half years ago. Right. Yeah. He had been listening to a podcast, started your podcast. Okay. So we kind of use that as motivation as well to keep on track. Okay. And again, what do you tell people the key to getting

out of that is? You said what? To stay focused. Stay focused. What Mm-hmm. Okay. And again, what do you tell people the key to getting out of debt is? You said what? To stay focused. Stay focused. What about you, Matt? I would say I would, you know, use something related to running. I would say to keep in mind it's a, you know, it's a marathon, not a sprint. Mm-hmm.

Mm-hmm. That's important. Yeah, because, I mean, a lot of things you can knock out really short periods of time, but this is not one of them. Yeah. Two and a half years is a grind. No, especially you start talking about student loan debt, a lot of things you can knock out really short periods of time, but this is not one of them. Yeah. Two and a half years is a grind. No, especially you start talking about student loan debt and a couple of cars, you know. Did you all have anybody in your family cheering you on throughout this journey?

Not really. We didn't really tell a whole lot of people. I mean, I know I remember mentioning to a couple of relatives about when we no longer had car payments. I think they kind of looked at us like we were from Mars. Well, you are weird now. You're officially weird. Yes, you are. Is this the first time you all have been debt-free since you've been married? Yes.

Definitely. Okay. How's it feel? It feels great. Was it worth the sacrifice? Absolutely. Will you go back? No. No. Never. Never. Okay. How's it feel? It feels great. Was it worth the sacrifice? Absolutely. Will you go back? No.

No. Never? Never. Okay. And this is your young daughter with you. What is her name and her age? She's Belle, and she's 14. Okay.

So has Belle been watching all of this? Yes. So is she indoctrinated? Now she's not going to go into debt, right? I sure hope so. Oh, I'm sure Belle made some sacrifices, too, along this journey. Right. Yes, she has.

You get to go along for the ride. That's how it works. I like it. Well, congratulations, you guys. Very, very proud of you. Very well done. We've got a copy of Chris's book for you, Everyday Millionaires. That's the next chapter in your story.

Bring it, baby. Keep on. Keep on running. Don't stop. You got it, man. Very, very, very well done. All right. Matt, Sarah, and Bell, Huntington, West Virginia.

$75,000 paid off in two and a half years, making $100,000 to $130,000. Count it down. Let's hear a debt-free scream. One, two, three. We're debt-free. Yeah. Well done, you guys. Great job free yeah well done you guys great job very well done wow first time in 18 years they've been debt free it's amazing most people live their whole lives that's right our question of the day comes from blinds.com they have a 100 satisfaction guarantee that means even

if you mismeasure you pick the wrong color they'll remake your blinds for free. Free samples, free shipping, new promos every month. You'll save even more. Use the promo code RAMSY to get the best deal. Chris, our question? Yeah, this question comes from Louise from Ohio. She says, I opened an IRA in 2011. It has now reached the nine-year period where there will be no penalty from the company for withdrawal. It's capped at its 3% earnings interest rate, which is pretty pathetic. So I want to take the $37K out and use it to pay down my mortgage, my only debt. I'm worried the interest earned will be taxed when I take it out, or I may have some penalties because I'm only 27. I did some research, and I think I can take it out without penalties I may have some penalties because I'm only 27. I did some research,

and I think I can take it out without penalties if I have it directly go to the mortgage company and never hit my account. Not true. Yeah. Do you think this is a good plan? Well, here's the thing. I look at this, Dave, and I would tell Louise, listen, if that's your only debt, I like the idea. We got to get this IRA moving and better invested for you to do better than that. But I like the idea of you being intentional. Let's let this money grow and experience some real compound interest. Yeah, you just had it invested poorly is where it amounts to.

If you pull out an IRA normally early, there's a 10% penalty plus your tax rate. There is a part of the CARES Act is allowing you to pull it out without any penalty, without the 10% penalty, but only your tax rate right now. I still don't recommend that. Instead, I don't want to send the government a third of this money because they're going to get approximately a third of it, give or take. I'm going to roll it to an IRA with a SmartVestor Pro and some good mutual funds that are making a whole heck

of a lot more than 3%. Yeah. You just got a bad investment inside of this. As you said, pathetic. That's a good word for it. Yeah. But, Louise, I'm proud of you. 27 years old, you're asking these types of questions.

You're engaged with your money, and that's a big deal. Go to DaveRamsey.com so you can find a smart investor pro. We can get this money out of the hammock and get it working for you. Yeah, that's what it's doing. It's just laying there taking a nap. Yep. And, you know, the interest earned is taxed, and for that matter, the whole balance will be taxed if you take it out now. It will not have a penalty up through September because of the CARES Act.

And so you could take it out and put it on the mortgage, but I wouldn't. Instead, I would roll it directly into an IRA. You do not have to pay it directly on the mortgage to avoid the penalty. I don't know where you read that, but it was wrong. There's never been a program that lets you put it on your mortgage without a penalty. There's not been one out there. You know, it's's not one of the regulations regarding IRAs,

individual retirement accounts. So click DaveRamsey.com and click on SmartVestor. It'll bring down a list of the SmartVestor pros in your area. You can select which one you want to work with and they'll try to help you get that done. And then you can get in the business of getting your

mortgage paid off. You've done a great job, as Chris said. Proud of you. He has. Very, very well done. This is the Dave Ramsey Show. Thank you. Are you and your spouse on the same page with money? If not, you're not alone. But discovering why you and your spouse handle money the way you do as individuals and then together will help you communicate better and

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you but buy them early because you get the extra goodies if you do pre-order today online at daveramsey.com jim is in pittsburgh hi jim welcome to the dave ramsey show hey honored to be on nice to talk with you and chris you too sir how can How can we help? So right around the end of last year, Dave, my wife and I finished paying $97,000 of debt. Way to go. And yeah, thank you. It took about 10 months. It was our intention to come down and do the screen, but life happens. Coronavirus happens. So what we're looking at now, though, is we're looking at kind of what to do next. And about a year from now, we have the potential of having a down payment for about a $200,000 house. But I'm kind of really not interested in getting back into debt. And we're thrown around the idea of actually waiting five years, investing that money,

and then maybe five or six years from now having the money to spend cash on perhaps a $300,000 house. I just wanted to get your thoughts on that. How old are you? 28. It's a great plan. I love the plan. I like the 100% down plan. And let me predict for you what will happen. will happen 25 sooner than you think you're going to get impatient and you're going to save more aggressively like when you were getting out of debt because you're going to get a little bit of house fever along the way and you're going to pile up some cash and you're going to do it in four years instead of six but that's wonderful great i think that and also your income will usually come up during that

period of time too and now that you have a solid fixed goal you're going to be 32 33 years old paying cash for a house that's my prediction because i've watched people do this a bunch over the last 30 years and i think it's a wonderful plan there's absolutely nothing wrong with that you don't think there's any risk of having that money in some good-performing mutual funds five or six years from now? 97% of the consecutive five-year periods, any particular five years, start on any year and go five years, since the stock market began, have made money. When you don't leave it alone five years, the probability goes up that you will lose some money. When you don't leave it alone five years, the probability goes up that you will lose some money. But, um, I, and I, you know, there's no, there's no perfect formula. You don't know,

but the historical indicators are that if you leave it alone at least five years, you're going to make some money. Yeah. And Jim, I think you all zeroing in on this and understanding exactly how much you're saving each month. You know, I wouldn't open up, you know, you could park the money in your money market account if it's going to be three years or less. Over than that, you could definitely take a look at investing it. Invest some of it, yeah. Invest some of it. You can just use an index fund with no commissions on it, do a no-load fund. That's what I do when I'm parking money short-term. Because here's the thing. The money that you have for the house is not going to be due to the growth of the investment. It's going to be due to what you put in there. You're not going to invest it long enough for compound interest to really kick in and be magical.

So what would you recommend investing it in then? I probably, given that this is a relatively large portion of your total net worth, and it's a big, hairy deal emotionally, I probably would put 50% of it into a money market and 50% of it into an index fund. And that way the money market's not going to make anything, it's not going to lose anything, so you've got that as kind of your stable piece of the equation. The other one maybe is going to make a little, and you're not going to make anything. It's not going to lose anything. So you've got that as kind of your stable piece of the equation. The other one maybe is going to make a little,

and you're not going to feel so bad about making nothing. You know? But that index fund, it could go up, it could go down. But if there's $100,000, or let's say if there's $150,000 out of the $300,000 that you have saved when you get ready to buy a house in the index fund, if it were down 10%, that would be unbelievable statistically, historically. But if it were, that's only $15,000, and it doesn't keep you from getting your house. Which, by the way, if the stock market is down 10% over a five-year period of time, your house is going to be on sale. The property you're looking at is going to be a good deal.

So the other side of the market is going to pick you up. But that way you're diversifying. You've got some in no risk and some in a little risk. And even that, if it lost a little bit, is not going to keep you from hitting your goals. It's not going to say, I lost all my money in the stock market. It's not going to little bit, is not going to keep you from hitting your goals. It's not going to say, I lost all my money in the stock market. It's not going to happen. That's not going to come up.

So way to go, man. Yeah. Good goal. Very well done. Tina's in San Francisco. Hi, Tina. How are you? Yes. Thank you for taking my call.

Sure. What's up? My husband and I have been following your practices for several years. As a result, we are on goal for our retirement. Great. Thank you very much. We've gone to your seminars in the area. Cool.

So this is my question today. My husband and I want to leave the area and go to a state that's more tax-friendly for retirees. Which would be almost any state. Exactly. So my question is around our current home. Our home is paid for, and we are thinking about either having our 28-year-old daughter live in our home, pay us rent, very little rent, or just sell the house and invest the money, and if she needs help along the way in her life, we could help her with real estate. We only have one child. b sell the house what's

the house worth i'd say probably 750 000 what'd you pay for it 220 okay you'll have no taxes because your tax your first 500 000 in gain married filing jointly on your primary residence has no taxes, and you're not going to get much more gain than that. You've probably actually done some capital improvements as you came along, and you'll have expenses when you sell it, so your net is going to be $500,000 or less at no taxes. Take your tax-free money, and you're going the opposite of the Beverly Hillbillies. You're leaving California and you're coming to the hills. So, come on.

You can just, we'd love to have you over here in Tennessee. Just don't bring your vote with you. So, there you go. I like the idea, too, of selling it, and that way you can come pay cash for the next home, set yourself up, and like you said, you're in a position to help your daughter if you so choose. There is a line on the interstate of people leaving New York and California right now. Oh, yeah. They can't get out of there fast enough because of the policies of these governments and governors on several different things.

And it's just like, that's it. I've had it. I'm out. I'm out. Yeah. And Texas, you can't buy a house in Texas or Tennessee right now because the California people are buying them. And so we'd love to have all y'all, but don't bring your ideology that broke your state

with you. You know, we love you. It's good. We're fine over here, though. We're sitting in a town. I think y'all have it. I want a constitutional amendment. You're not allowed to vote for the first three years after you change

states listen to you well you know that's how you protect things right well i saw what happened to my beautiful city of nashville yeah got invaded invaded by the skinny jean bunch and took it over you know? And now they're breaking the dadgum thing. It's completely broke. They've run it in a ditch. And so. Who are the folks again there?

Huh? Skinny jean. You heard me. Skinny jean folks. Oh, I didn't stutter. No, I know. I just want to say it one more time. You and I haven't been on that aisle, I'm just saying. For a couple reasons.

Yeah, there's a lot of reasons. There's a couple reasons we're not on that aisle. I got skinny socks is what I got. That's all I reasons. There's a couple reasons we're not on the island. I got skinny socks. That's what I got. That's all I got. And they squeak when you put them on. It requires a shoehorn

to get skinny socks on. Okay, okay. Jeez! We love all you people. Some of you more than others. This is the Dave Ramsey Show. This is James Childs, producer of the Dave Ramsey Show. Once again, you made the Dave Ramsey Show one of the top four most popular podcasts last year.

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