The Ramsey Show - App - How to Plan a Secure Future for Your Kids (Hour 2)

Episode Date: June 4, 2018

The show about you

🎵 Live from the headquarters of Ramsey Solutions, 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 the choice. I am Dave Ramsey, your host. Thanks for joining us. Open phones at 888-825-5225. You jump in. We'll talk about your life and your money. DeMarcus is with us in Chicago.

Hey, DeMarcus, how are you? I'm doing fine, Dave. How about yourself? Better than I deserve, sir. How can I help? Right now, I am 21 years old. My fiance right now is carrying our child. She's seven months pregnant.

You know, I grew up in a very rural neighborhood, and right now me and my fiance have no debt, and we're looking to keep it like that. And right now I'm trying to find some type of guidance or some type of way I can financially be set up for my child because I refuse to have my child live the life that I've done or live the life that I can take as far as financial, you know, peace or some type of way that I can make sure my child has a very good life? Good man. That's a good question from a good guy. Thank you.

So what do you do for a living? Right now, I work in a steel factory. Okay. And what's your income? Right now, I make roughly $35 a year. Okay. What about her? Does she work outside the home?

She did, but right now I told her to take a leave off, take work off for the pregnancy. So when she goes back to work after baby's home and everything? About $15,000. How much? $15,000. So it equals about $50 a year. Wow, you know, $50 a year with the both of us. Okay, all right.

Well, the good news is that there's two sides to the equation, not 16. There's the income side and the outgo side, and we work on both of those. Working on the income side is working on your long-term career, and that's saying I'm 21 years old. When I'm 41, what do I want to be doing with my career, and what will I be making? Because that's part of the answer to the question of how do I take care of my kid, right? Yes, sir. Okay.

And then the other part of the equation is how do we take care of the outgo side, and there's really only three or four things things and then a lot of complication within those three or four things that you need to do and i'll help you do that okay um the first one is we're going to get on a written budget i'm making every dollar behave every dollar has an assignment and you can use the app that is free for your phone or your computer or both called every dollar it's free. We built it. And it takes about 10 minutes to set up your budget. You and your fiancé can go over it together.

Okay? The second thing is then that you avoid debt like it was trying to kill your family because it is. All of the data that we have from millionaires, people that start with nothing, a lot of them started very poor and became millionaires. They avoided debt because when you give other people your money in the form of car payments, student loan payments, MasterCard payments, you don't have the money anymore. And if you give it to them and you don't have it anymore, you can't use it to become wealthy with called investing.

Right? Yes, sir. So you have to stay out of debt. You have to stay on a plan. We're going to save and invest. Our first savings element is to build an emergency fund, a rainy day fund, because as you'll quickly find with little kids and young marriages, sometimes it rains and you need an umbrella. Yeah, right now I currently have $2,500 so far in my emergency points. Good.

You're moving in the right direction then. Okay. And then let me think here. You know, you start your investing. You always want to have giving be part of your equation. For me, when I was your age, it wasn't long after that that we had our first kid in my early 20s, Denise, who's now in her 30s. A big part of me being able to provide for my family was I got really, really, really plugged into a great church. And my walk with God changed the man that I am and made me into a better daddy and a better

husband than i would have been otherwise and so i'll put that on my list of suggestions for you to look at um because it you know it gets it teaches you the character parts the value system parts of being a great dad so you said said fiancé and seven months pregnant. When's the wedding? Yeah, we're not going to have a wedding. All the money is just going to be for our bank account. You know, we're not slashing. We don't need a wedding. When's the wedding?

The when we're financially able to. Okay. So right now we don't have a certain time for that. All right. Again, you made the mistake of asking my suggestions, so I'm going to give them. Here's what I would do if I woke up in your shoes. You get to do whatever you want. You're a grown man, okay?

Right. But if I woke up in your shoes, I would get married, and I would have the reset now immediately, and I would have the reception sometime later when I have the money for a big party and celebrate the marriage later because you've already made all those other decisions. Here's why I would do that. There's a couple reasons I would do that, but here's why. There's a thing in research on families that says this if you marry before having a child and you have that child after age 20 and you graduate from high school you have an almost zero percent chance of the child being raised in poverty. Isn't that interesting? Yes. So 97% who follow that success sequence earn a high school diploma, work, and marry before

having children, will not be poor as they enter their 30s. And that's called the success sequence, which is married, have a kid, be working, get married, have a kid, start your life. And you have the opportunity to put that in the right order um i don't know that it matters a whole lot today in your situation but if i were in your shoes i would go with that 97 statistic i think it's a big deal only four percent of homes with a married mother and father are on food stamps but 21 of people who live together are that's some interesting statistics okay i don't think you're heading there but you called and

asked me if i woke up in your shoes at 21 so i'm giving you more advice than just money advice and you probably got more than you bargained for but um anyway the last thing i want to do is i want to give the child i'm want to give the baby a gift and that's i'm going to put its mommy and daddy through financial peace university i want you guys to go through our class on how to handle money and i'll show you all of those 93 little details and show you exactly what to do so you work on being the man that it sounds like you already are a good man worried about and being noble and concerned about your child and being a good husband and work on your spiritual life and work on your career and get your income up over time. And I'll show you how to become wealthy and completely change

your family tree and avoid a lot of the pitfalls and potholes that are out there. Financial Peace University is a one-year membership. You go to a local group and take nine different lessons, and the whole thing is also accessible online. Oh, and that gives you every dollar plus, which is connectivity to your bank for a year as well. So you hold on. All of that is my gift to your baby. That's my opinion.

You asked it, and I'm an expert on my opinion. This is The Dave Ramsey Show. For years, I refused to endorse any company that claimed to get people out of timeshares. I told my listeners it's a horrible product and that, unfortunately, they didn't have a lot of options. Then a few years ago, I sat down with Brandon Reed, the owner of Timeshare Exit Team. Brandon walked me through the timeshare industry, and I learned that you can't sell them, and you can't even give them away. And then we talked about Timeshare Exit Team's process. Every ownership situation is different, which is why they have more solutions than any other company.

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Brad is calling from Palm Beach, Florida. Hey, Brad, how are you? Hey, doing good, Dave. Thanks. How about you? Better than I deserve. What's up? All right, Dave. I'm calling because my wife is 50% owner of a house in Puerto Rico that she kind of grew up in. Her mom lives there now. It's a house with four apartments. And our question is, because she's a 50% owner, it's led to some issues in the past few years.

And I'm wondering if my wife and I should buy the other 50%. Okay. What kind of issues? Related to the other ownership, my wife was willed the house by the man who owned it. They had taken care of him for years and years and years. And when they finished paying off the mortgage in the last three years, the other 50% ownership came around. And it's led to administering the rentals through a lawyer, through their lawyer.

It's dragged a lot of things out. Who owns the other 50%? It's a family related to the man who died and left them the house. The family of the man? The family of the man. Well, really, his wife's side. So his wife died before him. Oh, I got you.

She gave her half to them. Yeah. Okay. And so what happened to the house in the hurricane? Oh, yeah, so that's the next thing. Right now there's only one of the four units that's livable, which is the one her parents live in. The other three all suffered damage and need some work to get them back to livable.

Okay, and so what would it take to buy out the other half, assuming you could do it reasonably? The house was appraised three years ago before the storm at $170,000. We estimate, with the contractor who came and looked at it, around $15,000 to $20,000 needs to be done today to get the other three livable, the three units that are damaged. So really it's pending a new appraisal, I would say, without knowing for sure what that number is. It used to be 85.

Now it's, I guess, something less than 85. Yeah, considerably less, like 60, 50 or something. Yeah, okay. And so you can buy it out for 50, put another 15 in it, and is your household in good shape financially? Yeah, thanks to you, my wife and I, we got baby step two taken care of a couple months ago. We're in step three, but we're renting ourselves.

Okay. Well, no, you don't need to be buying a property in Puerto Rico then. No, I definitely would not do that. Before I did that, I would just move mom and dad out and pay their rent. It would be a lot cheaper. A lot less than $85,000 that you don't have. You don't even have your emergency fund in place. Not today, no.

This would be something we would be saving for. Oh, you would do it later in the future? Yeah. Yeah, we wouldn't do it until we had enough to pay cash for whatever half that was. Oh, okay. Okay. I live in the U.K. Okay.

Well, sometimes people do and sometimes they don't. So, okay. All right. Yeah, all right. Well, then, if we're talking about, you know, post-baby step four, you've already bought a home that's on a 15-year, and then you save up, you know, above your emergency fund enough to pay cash for the buyout and for the renovations all.

But that's going to be a little while, I suspect, isn't it? Well, I think the number is less than 85. I think it could be done. But you're going to need 20 to fix it up. So, I mean, if you buy it for 50, you need $70,000 cash above an emergency fund that you don't have now. What's your household income? Around $250,000. Okay.

Well, you might get there pretty quick then. All right. That's the good news in this story. Yeah, if you want to do that, that's fine. I'll tell you what is interesting sometimes in these negotiations. Because mom and dad lived there and because this gentleman was so generous to them and all of that, there's a lot of emotion in this deal that you're describing to me. And let's go ahead and insert a hurricane in the middle of the emotion, too.

And so people get weird, like the other side of this negotiation. And so if I were in your shoes, I would be just as willing to walk away, letting them buy me out at half and just go buy Mom and Dad something different. That's emotionally a problem to move them, and they've always been there, and yeah, yeah, yeah, yeah, yeah. But you may end up a whole lot better off just buying a seventy thousand dollar single family home with cash you got from these people buying you out then you would be um messing with a quadplex and when everybody in the whole freaking country is trying to rebuild right now. Getting crews on this is a challenge.

Much less electricity, water, and all that kind of stuff. I mean, Puerto Rico got hit so much harder than the news has told people here. As you know, it's a mess. And I'm sure you're very aware of that. And it's a

sad mess. People are in trouble there. And it hasn't been reported on, and the U.S. government has not done a good job taking care of business there. But all of that aside, you've got that environment in which you're making a real estate investment decision. And so if I'm doing that, it might be that these people walking around, strutting around through lawyers and all this stuff, they got an attitude that, you know, hey, buy me out or I'll buy you out. I'll give you 50 grand or you give me 50 grand. Either one's fine. And if you don't do that, I'm going to sue you.

At one point, they offered 30 three years ago before the hurricane. Yeah, okay. I'll take $50 or I'll give you $50, which if you think $30 is a good buy, if I offered you $50, you should take it. That would be my response, especially post-hurricane. If you really think that it's worth doing that, that might be a little rich even. But you thought $30 was a good buy, I'll offer you $40. And they say, oh, no, we wouldn't sell for $40.

Then why would you think i would sell for 30 so we need to come to a number that one of us buys the other one out what's this number and just begin that negotiation through their stupid attorney this is this is a barrel of fish hooks yeah i would get this mess cleaned up and i would get out of dodge but if i'm, I want to keep the possibility of moving mom and dad and doing away with this deal by being bought out as big a possibility as buying the other side out so long as the number is right.

And I don't care whichever way the number is the best number. If it's a good number for you to buy, fine. If it's a good number for them to sell, for them to buy, fine. I mean, you know, but I wouldn't be all married to this particular quadplex just because of the drama and how we got here. There's all kinds of places mom and dad can live. And so I'd move them before I stayed in or got into a bad deal on emotion only. But either way is fine. Either direction is fine.

But do it with cash above your emergency fund and above you having purchased your home. Margaret is with us in Fairfax, Virginia. Hi, Margaret. How are you? Oh, my gosh. I'm so glad you asked that because I'm better than I deserve. I was going to ask you to ask me that anyway, so thank you. Well, I read your mind.

How can I help? Well, I wanted to know if you thought I was overinsured. I am debt-free. My husband and I, we have no mortgage. Our net worth is over $3 million. We have two kids about ready to go into college. And I renewed my long-term disability, and I thought I was a little bit too rich. I was at a much lower level, but because I'm making more than I've ever made,

he convinced me to go to a higher level. So my premium went from $340 a month to $900 some odd a month. And I thought I was a pretty smart businesswoman, but it does triple my monthly long-term disability in the event the worst were to occur. And I just didn't, I don't want to be over-insured. What do you do for a living? I am in the software business. And how old are you?

I am very young, young at heart. I'm 52. Okay. That's ridiculous. I'm 52. Okay. That's ridiculous. I would not pay $12,000 a year for long-term disability. You would not? No. Okay.

Not a chance. Should I go back to those $300 premium? I would go to an independent broker and shop it to start with. Okay. Jump on with one of our endorsed local providers and have them shop it among several different people. That's outrageous. And, you know, either buy it through an association or buy it through shopping and get the cost down that way or just lower your coverage. You got $3 million.

You become disabled, you're going to be okay. I don't want that. But, I mean, I would move towards being at least partially self-insured to save, you know, thousands and thousands of dollars a year if I were in your shoes. Hey, thanks for calling in. This is the Dave Ramsey Show. Hey, this is Dave Ramsey. You know, most of us have gotten behind on our bills at one time or another. That's nothing to be ashamed of. It happens.

And many of us know the embarrassment that comes with those harassing calls from collectors. Some of these guys are just scum. But then there are the collectors that are just plain crooks. These are the guys that take it a step further and they violate the Federal Fair Debt Collection Practices Act on a daily basis. They're breaking the law and they need to be stopped. The truth is, debt collection is the most abusive, out-of-control industry in America today. But you don't have to put up with it. If you have collectors calling you multiple times a day, calling you at work after you've asked them not to, cursing or threatening you in any way, then you need to visit CollectionBully.com. These folks will connect you with an attorney who I know can help you. These attorneys know how to stop collection agencies from bullying and threatening you anymore.

CollectionBully.com. Go to CollectionBully.com today. That's CollectionBully.com. Go to CollectionBully.com today. That's CollectionBully.com. In the lobby of Ramsey Solutions, Rolando and Carmina are with us. Hey, guys, how are you? Hi, Dave. Welcome, welcome. Where do you guys live? Provo, Utah.

Oh, fun. And all the way to Nashville to do a debt-free screen. Yes, sir. Congratulations. So how much have you paid off? $86,054.31, Dave. Love it. How long did that take?

It took us two years, nine months, ten days, 1,538 pizza deliveries. Oh, look at that. I love it. And your range of income during that two years and nine months and ten days? It started around $50,000. It went upwards to the $90,000s. And now that we're past baby step two, it dropped down again to $80,000. Good.

What do you guys do for a living? I work for an early intervention program for Easter Seals Goodwill. Oh, good. And I work as a job coach trainer for a Deseret Industries thrift store. So we use our employee discounts at the thrift stores. Fun. Very good. Good for you.

Good for you. So what kind of debt was the $86,000? I have it all here. It was $4,418 on a car loan, $6,400 on an unsecured loan, $17,500 on credit cards, $18,400 on a 401k loan, and $19,230 that we owed our parents and lastly uh 19,000 on the home equity and you had every kind of debt possible yeah you had the whole potpourri man you had just the whole the cornucopia of debt oh my gosh look at you well done well done so what happened to you how long have y'all been married? 15 years. So 15 years, you're bopping along, you're normal, got yourself in debt.

All you do is just work and pay bills, just work and pay bills. And so something happens two years and nine months ago, and you went, no, no, no, no, no, something's about to change here. What happened? Well, it was two things, Dave. First, we got a house. It was the first time that we had a house, and having a mortgage, you know, that scared me. So I looked up what I can do, and I found the Total Money Makeover book. So I read that.

I was real embarrassed because you wrote it for me. And when we were going to California, I got the audio book from the library, and I told Carmina, look, while we're on the road, I have this audio book we should listen to. And I just looked straight, Dave, because I couldn't look at her. I thought, gosh, she's just going to point at me. She's going to scowl. But no, she was very supportive, so we decided to take FPU.

And while we started FPU, my father passed away. Oh, my gosh. And just when he passed, we weren't ready for it, emotionally, obviously, and financially. And, you know, my dad was a great man, worked hard all his life, but he wasn't ready, and we weren't ready. So when we experienced that, I said, I'm going to make sure that my kids don't have to go through that.

So in FPU, we learned about life insurance. We learned about increasing coverage, getting the right kind of coverage. I was all for it. I had to do it. Wow. How old was your dad? 72, sir. And he died of cancer.

So you guys had to help chip in for the funeral and that kind of stuff and you didn't have anything to do that with? We did, my sisters and I. So, you know, we all pitched in. We were able to pay it, but it was really sad, more scared than anything, especially for my mom. We would have preferred for her not to worry about that, but because we were not ready, you know, she had to suffer needlessly. Nothing like that kind of wake-up call to keep things, to get you really, really serious about something. Oh, yes. It hurts your heart.

Yes. Wow. So, Carmina, you are driving towards California. This man of yours has put this audio book on the cassette or whatever it is. It's not cassette, but it's coming on the radio. So you're having to listen to this guy tell you everything you've all been doing wrong. What were you thinking? Well, everything that you explain, it just clicks. It's the right thing to do.

So it wasn't hard for me to follow and go along with it. It was the right choice. It just felt like it was the right choice. Okay. So you were like, okay, game on. Yeah. Bring it on. Bring it.

Bring on the pain. Yeah, we're going to live like no one else, so later we can live and give like no one else, so that we're not in that position. We're not in that position when we pass. wow wow very cool what was the hardest part of this journey for you all well on my part it was not having him at home he had two jobs um i was working i was going to school and i had to take take care of the kids. So it was really hard. But we have been blessed throughout the whole process. Even before we even heard of you, I got offered a job. I wasn't looking for a job.

I got offered a job. And throughout the whole process, I've had a raise. We've had blessings that have come to help us out through this journey yeah amazing you guys are holding stuff in your hands tell me what these are and what this is about well this was uh all our credit cards that we shredded up um during our fpu classes and we put a map of the world in the back to remind us that one day we'll travel around the world oh i love it so those are all your personal credit cards yes how many credit cards did you have like a lot let's not talk about that box is full wow okay well the good news is the world is right there behind them that's good

okay and what about you rolando i'm holding a little gazelle. It's a car ornament. Whenever I had to deliver a pizza and, you know, maybe I drove five miles and got a quarter out of it, look at the gazelle and say, it's all right, I'll get it on the next one. Just keep working hard. Keep going. Keep going. You know, you'll win. A thousand pizzas.

Who are you delivering pizza for? Which company? Papa John's Pizza. Papa John's. Yeah. And how many nights a week did you do that in the beginning i was doing it uh i think five nights a week um and then with carmina going to school became a little harder so i scaled it back to three but there was some dates some days where i'd go to my first job in the morning at seven

be done there at 3 30 sorry 4 30 be at Papa John's at 4.45, and work all the way to 1 o'clock. And then on weekends, I started my company. I called it IWOW. I work on weekends. Very original. And if somebody said they needed something, oh, I'll do it. I'll clean your backyard.

Dog poopy. What was the best paying IWOW job you got? Clearing out a backyard of debris. It took a while, but it paid very well. It was actually my mom. So part of me is like, Mom, I don't want to charge you because as your son, I should be doing this for free. But I owed her some money. So I said, you pay me whatever you think is fair and when she paid paid me I take out the money for the tithing and I just

gave it right back to her and she said what's this I said you're my last debt mom so I'm gonna pay you off and she my mom bless her heart she wanted to forgive the debt but part of what i owed her was um my dad when he retired they gave him a bonus so he never got to enjoy his his retirement bonus because they lend it to me so i just you know i said mom you can't forgive this because i'll never forgive myself yeah just let me pay you back and whatever you choose to do with it you know you want to buy my kids some presents? Awesome. But let me have the satisfaction of giving this back to you. And when I did, it was a joyful moment.

I love it. Well done. Well done. And you brought the kiddos with you in their names and ages or what? Yes. So we have Seth, my big boy. He's 14 years old. Danielle, my princess.

Here they are. She's 11. And Jared Jedi, my princess. Here they are. She's 11. And Jared Jedi, my little guy with the curly hair. I love it. He's nine years old. All right. Very cool. Eight years old.

I'm sorry. Well, we've got a copy of Chris Hogan's retire-inspired book for you. That's the next chapter in your story for sure, and that's to be millionaires. Yes. And outrageously generous along the way. You'll be calling in on an everyday millionaire's hour one of these days. Dave, can I say one more thing? Yes, sir. It's just along with learning how to talk about finances,

you also help us communicate about other things. Because I was so far away, I wasn't communicating with my wife. And just talking about money helped us be able to talk to each other, take counseling where we could communicate better. Now our marriage is a lot stronger, and I want to thank you for that. Praise God. Count it down right quick. Let's hear a debt-free scream.

Three, two, one. We're debt-free! We're debt-free! 86,000 paid off in two years and nine months, making 5050,000 to $80,000 with 1,000 pizzas delivered. That's a mic drop. This is The Dave Ramsey Show. Are high health care costs getting you down? Are you confused trying to navigate your options?

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How are you? Hey, Dave. How's it going? Better than I deserve. What's up? Hey, Dave. My wife and I have listened to you for about nine and a half, ten years now. And we sadly cherry-picked your plan a long time ago.

And it partially helped us get out of some debt but we over the years have gotten back into some debt and are wanting to try and follow your plan completely and become millionaires. We currently own an electrical contracting business. I'm actually part of your all access, and it's been phenomenal to work with the Entrez leadership side. And that's also helped us try and make better decisions with our personal finance. And so my question is, is we have about $65,000 worth of debt that we're trying to get rid of. And the primary question that I have is we borrowed between $40,000 and $48,000 at a 0% interest rate through a couple credit cards that we have to do a large remodel on our house. Our loan amount right now is about $190,000, and our house is worth about $510,000 to $520,000. And we have a FHA mortgage and have mortgage insurance on the loan. We weren't able to get rid of it unless we refinanced. So we've considered to refinance to get rid of the $240 a month

payment to help with this whole debt snowball deal. And our question is, would it be acceptable to do a cash out refinance and take about $45,000 out of the house to pay off of those two? What's your household income? I pay myself. I own the business, so I pay myself $100,000 a year. What's your taxable household income? Yeah, our taxable is between $150,000 and $175,000. Okay.

So our loan amount wouldn't be any greater than $240,000. Right now our mortgage payment is a little over $2,000 a month, but we would get the $240 a month credit basically for losing the mortgage insurance and then the increase. And go to a Fannie Mae loan which will be what is your current interest rate on your first uh 4.75 and you're not going to improve that a lot right now might knock a half off that or something um right and my other thought david is that we could it's okay to do what you're talking about but um the danger is that some part of your brain you have discovered that this problem is the person in your mirror,

and then we're turning around trying to borrow money, trying to borrow our way out of debt, and that bothers me. Mathematically, it was a home remodel, and if you did it, it's not the end of the world. But, dude, if you do this and then you keep screwing around with this subject, you know, you've done yourself a disservice. You didn't bother me, but you've done yourself a disservice by kidding yourself. So only you guys can make that call. But I've got to tell you, if you do this, you have to, like, get, like, a tattoo on your neck that says no debt. I mean, you've got to really go all in. I'm kidding about that part.

But, you know, I mean, you've got to be sold out to where you are never going to do stupid again. Because if you do this and then you turn around and go, well, now we're sort of Dave-ish again. And so now we're going to borrow a little money for the business to expand. And, you know, all you've done then is just rationalize your butt back into debt deeper and you you hid from the frustration frustrating emotions of the mistake you made with this remodel um and so by financing the remodel so if you do it you've got to for your For your sake, the two of you have to pinky swear and spit shake. We are done. We never borrow money again for anything ever. Periods after each word. I mean, you have to dial that in.

I can't do that for you. If I could have, you wouldn't have been in this mess to start with. So you guys got to make that in. I can't do that for you. If I could have, you wouldn't have been in this mess to start with. So you guys got to make that decision. That's the downside of what you're talking about. The upside of what you're talking about is it's fairly logical. It makes sense. This mortgage probably needs to be refinanced anyway. The property, you know, the $45,000 is pretty well in the remodel,

so it's in the property. So it's not really like you went to Europe and then refinanced it onto your house. So that would be even worse, and I'd probably just go no. But if you want to play this through, that's what you've got to do if you're going to do this, if I'm in your shoes. Hey, thank you for the call. I appreciate you being a listener and an All Access member. Our question of the day comes from Blinds.com. Find out for yourself why Blinds.com is the number one online retailer of custom window covering.

Site-wide savings happening right now. You take an additional 5% off at Blinds.com slash Ramsey. Blinds.com slash Ramsey. Questions from Earl in Missouri. My daughter believes that she must establish credit in order to rent an apartment. I don't have a clear and concise answer to counteract that. What should I tell her? Well, that's the most absurd freaking statement in the world.

There are no rental properties in America that rent to you without a credit score. That's absurd. It's absolutely absurd. Because I know that to not be true, because I am a landlord of multiple properties, and we will rent to you without a credit score. Now, we won't rent to you with bad credit. We won't rent to you if you're in a Chapter 13 bankruptcy, for God's sakes. And if you can't pay your bills, we don't want to rent to you,

because we don't want to be one of the bills you're not paying. But if you come in with a zero credit score, and you make the money to pay the rent, I see that as an advantage because you don't have any debt payments. So you probably can pay the rent since you don't have a freaking $600 car payment. Now, a lot of corporate big apartment owners will have a 26-year-old manager who's not allowed to make any common sense decisions, and they have to do what corporate tells them on everything, which includes don't rent to anybody without a credit score.

Now, I can't rent an apartment, and I'm a multimillionaire. I can't rent an apartment at that place because I have a zero credit score. Now, I can write a check and buy the whole freaking complex, but I can't rent an apartment there. That's how moronic that system is. It's ridiculous. But to answer your daughter's question, yes, some people won't rent to you if you don't have a credit score. Oh, well, some people will rent to you.

The idea that you have to go get into debt so that you can rent an apartment is absolutely ridiculous. And a dumb plan, by the way. I hope I wasn't unclear uh did you know that 78 of americans are living paycheck to paycheck struggling with these kinds of answers if you ever want to help people you ever find yourself driving along in the car answering the questions before i answer them you might be the person somebody that god's tapping on the shoulder and saying hey you need to help people if we have a world-class program called financial coach

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And you ought to check it out. During the webinar, we're going to give you an in-depth look at the Financial Coach Master Training. We're going to answer any questions we've got, and we're giving away two enrollments to the training for free. To register for the webinar, text the word COACH to 33789. That's COACH to 33 789 that's coach to 33 789 when i first started this stuff and i realized that not only did i want to apply these principles to my life but i needed to i felt a tug on my heart to help other people with this i went to a training in north georgiaahlonega, Georgia, at a retreat center with Christian leadership concepts. Larry Burkett did trainings in those days.

It was all analog, of course. There wasn't even VHSs to work with. We just went down there and got trained on how to do this stuff. And we've expanded that and expanded it and expanded it and expanded it and have thousands of coaches all over America. That puts this hour of the Dave Ramsey Show in the books. Hey guys, this is Blake Thompson, Chief Production Officer for the Dave Ramsey Show. This hour's up, but you'll find more on our YouTube channel, where we have over 6 million YouTube views each month.

You can find debt-free screams, millionaire hour clips, Dave rants, and so much more. Go check it out. One-third of American households have no life insurance, and half of the remaining households don't have enough. The main reason people don't have coverage is they think they can't afford it, they don't know what kind or how much to buy, and they're afraid of making the wrong decision. Listen, it's not that complicated.

If you have a family that's depending on you, you must have term life insurance. Rates are at an all-time low, so price should not be an excuse. Stay away from cash value whole life plans. I recommend 15- or 20-year level term insurance plans, and you need between 10 and 12 times your income. I've been sending you to Zander Insurance for almost 20 years. They shop the top companies to get you the best rates and keep the entire process simple. Call 800-356-4282 or go to zanderinsurance.com. Take the time to take care of your family. Call 800-356-4282 or go to