The Ramsey Show - App - How to Plan for a Lay-Off (Hour 2)

Episode Date: January 17, 2019

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🎵 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 choice. I'm Dave Ramsey, your host. You jump in, we'll talk about your life, your money. It is a free call. Josh starts off this hour in Hartford, Connecticut. Hey, Josh, welcome to the Dave Ramsey Show. Thanks, Dave. How are you?

Better than I deserve. What's up? So, my wife and I have started financial pieces. This is actually our second time, because the first time my wife convinced me that I was, well, she told me I was doing Dave Ramsey-ish. So we kind of stopped. We're doing it again. My question for you is we've completed baby step one. We're on to baby step two. We have about $5,000 in our savings account, which I am so afraid to just take it and pay off some debt just because I'm worried that one day my furnace is going to blow up.

Something catastrophic is going to happen in life, because I've always had that financial nest egg there. So I'm afraid to lose it by just putting it towards debt. Okay. What's your household income? It's about $86,000 net. And how much debt do you have? $130,000.

Counting your house? Not counting the house. What's? $130,000. Counting your house? Not counting the house. What's the $130,000 on? So it's two cars, both of which are $6,000 and $7,000. I have a student loan for $10,000 after the military from room and board. And then my wife has $110,000 or $100,000 is her student loans. Okay. And so you're three years to get out of debt yep yep okay um

you can do what you want we suggest holding a thousand dollars and if something like a furnace comes up you'd have to just put your uh get out of that plan on hold and buy the furnace, and then rebuild your get-out-of-debt plan. But $5,000 really is not even close to an adequate emergency fund. $1,000 obviously isn't. We didn't intend for it to be. But no, I understand the hesitation, but the hesitation, that little bit of fear that comes up inside of your throat when you're doing that is one of the things that will move you forward on aggressively cutting lifestyle, aggressively increasing income, aggressively selling off anything we can find to sell off to get this debt cleared as fast as we possibly can so that we can build that emergency fund up to what it should be,

three to six months of expenses. So $20,000, $25,000 and no payments, no debt at all. And if you're sitting there two to three years from now, $20,000, $25,000 in an account, zero debt of any kind except your house, that's going to be a very nice way to feel. It's going to change everything. Adam is with us adams in st lewis hi adam how are you i'm great dave how are you doing better than i deserve what how can we help my wife and i are on your program we're gazelle intense and ready to go um got a little

speed bump though we filed a chapter 13 bankruptcy uh two years ago on a business that didn't work out for me. It was a contractor business, and for two years now, and we had a bankruptcy back, and my lawyer's telling me we could probably have it in May. You're cutting in and out. You're cutting in and out. I'm not hearing but about a half of what you're saying. You said the lawyer's telling you you can convert. And now you're just gone.

Okay. All right. Alexis is with us in New Orleans. Hi, Alexis. How are you? Hey, Dave. I'm doing great. How are you?

Better than I deserve. How can we help? Awesome. So my husband and I just got married last month, and we have no debt except for a five-plex that we just purchased. Good. We paid most of it in cash, and so the only debt that we have is for the construction loan to renovate the 100-year-old five-plex, and that is for about $132,000. So we are next week moving into one of those units.

Three of the units are occupied and bringing in rental income. And the fifth unit, we are going to Airbnb. So my question for you is how do we keep doing this, building our real estate portfolio in a wise manner, trying to be mindful of not wanting to go into debt minus the real estate? How do we measure when is the best time to buy our next property until we can pay for it? Cash? What do you suggest? Well, I love real estate.

I own a bunch of real estate. I used to own a bunch of real estate before I went broke, and I discovered this thing called foreclosure that occurs, and it's not fun. When you have payments on rental property it changes the way you manage the rental property you can't keep that from happening it just does because there's that extra pressure that extra problem uh that extra pull and so um it it is a difficult way and you're very aggressive you're wanting to build real estate you're going to buy real estate you're wanting to build this portfolio as fast as you can i'm not sure i can talk you out of it

you've got the fever uh but i want you to pay off your house yeah and then i want you to save up and pay cash for the first property when you've got a five plex and a second property paid for the third property will come fairly fast by the time you've got five or six paid for you can buy properties out of these cash flows fairly often and that's what we've done our real estate makes us a lot of money because we have no debt on it and that money is used to purchase more real estate okay and it just but it takes that first one you know getting the five plex paid off in your case the the $130,000, and then, you know, saving up to pay for that next property, and then the next property, and then the next property.

It's just difficult. It's hard. And it takes some time. But you will look back 10 years later and go, I would rather have all of these properties paid for than own three times as much property and not own it all and it changes everything so hey thanks for the call i hope you do it that way i have and i can tell you it has been a blessing a real blessing well let's take a minute and think about your future what if you never had another car payment what if you didn't have a master card in your life?

What if you hadn't discovered bondage or American distress? What if you had no payments? How much would that change your generosity? How much would that change your ability to build wealth? Well, you can do this. We've shown millions and millions and millions of families how to do this. Not only how to get out of debt, but then how to become everyday millionaires. Investing in your 401ks and good growth stock mutual funds and your Roth IRAs and good growth

stock mutual funds, it changes everything. We'll show you how to do it. The nine-week class is called Financial Peace University. And right now, when you buy the nine-week class, you get the one-year membership to the online version of everything. All the videos, the audios are on there. The next class called the Legacy Journey, the class about how to teach your kids called Smart Money, Smart Kids.

All the communities are in there for discussing and encouragement and getting questions answered. Everything is there. You get every dollar plus, which is connectivity to your bank and pushing all this stuff all the way through. It changes everything. Financial Peace University for the nine-week class, and then be sure you participate in the one-year free membership with all the online activities. DaveRamsey.com. Check it all out. This is The Dave Ramsey Show. I had a conversation with a friend recently, and he told me about a young man in his late 20s who died suddenly with no life insurance.

Now, I don't want to sound unsympathetic, but this drives me crazy. What are people thinking? I don't understand how taking care of your family isn't a top priority. Most of you probably just spent a bundle on Christmas on things you didn't really need, and now you're making New Year's resolutions that are focused on yourself. But have you taken the time to do something really important like protect your family? If you want to use the New Year as a reason for doing something right,

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Zander.com or call them at 800-356-4282. Please learn from other people's mistakes and get this taken care of. Zander.com. Thanks for joining us, America. We're glad you're here. Our question comes from Blinds.com today, our question of the day. Find out for yourself why Blinds.com is the number one online retailer of custom window coverings, free samples, free free shipping and with new promos they run every month you'll save even more use the promo code ramsey to get the best

possible deals crystal is in oklahoma we found out yesterday that my company is restructuring and my position will be eliminated hadn't happened yet but it will sometime this year my husband and i are on baby step two and not sure how to continue at the moment should we stockpile cash or pay off as much as possible before the restructuring um you should pile up cash stop your total money makeover build as big a pile of cash as you can build and go look for a job now don't sit and wait on this to happen to you go go get a new job, a better job. Go make more money now. But in the meantime, until you find that better job,

if you find a better job next week, quit. You let them restructure without you because they're about to restructure your butt into the street. Don't sit and wait on this car to run over you. It's coming right at you. Get out of the road. And so build up as much cash as you can build up until you get your career stabilized, meaning that you have your new job.

Then you push play again on your total money makeover steps. Then you work it again, but not until then. Kelsey's with us in Portland, Oregon. Hi, Kelsey. Welcome to the dave ramsey show hi dave thanks for taking my call how are you better than i deserve what's up um so i uh have a question i'm graduating college in june and i already have a job lined up great what are you gonna be doing uh civil engineering wow good for you. Thank you. So I'll be making $62,000 a year, and that's before taxes.

Good. But I'll have $55,000 in student loans, and my job offers an amazing 401k match. It's 20% with no limit, and they also have a 3% discretionary contribution. So I'm wondering, I really want to make the most of this free money, essentially, but I do also want to pay back my student loans, so I'm wondering how to balance this or what you'd recommend for budgeting when I get out of school because I'm very new to the financial management stuff. Cool. Good for you. Well, it's mathematical blasphemy to avoid that match. It's hard for nerds, math nerds like you and me, because I know you're a math nerd because you're a civil engineer. It goes with the territory. You like math. I do, too. You know what compound interest looks like. And it's hard for us to avoid that free money and that match but right but what i have found is over 30

years of doing this that the behavior aspects of this are more important on the short term than the math aspects so what i mean is this i would we tell people and i would not start your 401k until you get these student loans cleaned up. And here's why. What you focus on is what you win at in life. The reason you have a civil engineering degree, which is a difficult degree to get, is A, because you're bright, because dumb people can't get that degree. You're bright.

And B, because you focused on it. You concentrated on it. You knew what classes you had to take to graduate, and you made sure you got in those classes by that date so that you got out. You focused on looking for a job. So consequently, you already have one lined up. Way to go. What you focus on is what you win at and by starting your

401k instead of focusing on getting out of debt you lose focus and so the power of focus on a temporary basis supersedes this because you're going to be debt free in two years you think so you should be i mean mean, you said 55, right? That's 27.5 a year. Yeah. And you make 62. Right. I mean, 27.5 a year?

I mean, you may not be able to party or something. You might have to put off buying an $8,000 couch. Yeah, well, I haven't been doing that stuff anyway. I know, but you see my point. I mean, $60,000, okay? Because we're not going to do anything except get out of debt. We're going to completely focus on that, clear the debt as fast as you can. Now, I wouldn't suggest you miss the match for 10 years, but I'm not suggesting.

I don't think you need to miss it for 10 years. You're going to miss it for two, and you're to miss it for two and you're going to focus like crazy you're going to get raises you may even pick up some side gigs and side hustles and you're just going to throw it all at the debt throw it all at the debt throw it all to that anything you can do to pick up some money throw it all to that anything you can squeeze out your budget throw it all to that the complete and utter focus is what causes you to become debt freefree and debt-free quickly. Linda is in Nashville. Hi, Linda.

Welcome to the Dave Ramsey Show. Oh, yeah. As everyone says, thank you for taking my call. Certainly. How can I help? Well, I'm so excited. I've called you throughout the years when I first bought my house, and you guided me through on how to lower the payments, refinance, different things, and I got my house paid off in like a seven-year thing.

Wow. And so that was great, and of course, I never had any other debt. I never owed for my car, never had a credit card. I paid for all my furniture, everything. And before I retired, then, you know, I had everything paid for. So anyway, that's where I am now. My savings is in the thrift savings plan, and I'm 71. And so now, and, you know, I never did anything with it.

I really, I'm pretty ignorant about it, actually. I just left it alone. But now I have to do something with it. And I know the time is up. And honestly, I don't have a clue what to do. Should I take it out and put it somewhere else? Have you been drawing on it? I made one withdrawal about some years ago.

I made one withdrawal. How much is in, and I can't make any more. But other than that, I've done nothing yet. How much is in there? Oh, do I have to say on the air? I know so many people watching this show, and I'm local. Well, everybody's local somewhere, darling. But okay, anyway, here's the thing. Just click on SmartVestor at DaveRamsey.com and put in your information.

It'll drop down a list of the SmartVestor pros in your area, people that do and that'll help people with investments. I don't do investments, but I advise people on what to do. I just don't do it. And these are people that we recommend you get in touch with. They have the heart of a teacher. They'll sit with you and teach you what to do. What I would suggest you do is you do a rollover, what's called a direct transfer rollover to an IRA.

And I would spread the money that you have across four types of mutual funds, growth, growth and income, aggressive growth, and international. Growth, growth and income, aggressive growth, and international, and a direct transfer rollover into an IRA. And one of the SmartVestor pros can show you exactly how to do that, do it for you, but teach you about exactly what's happening here. You'll have no taxes on that money when you roll it over to that. And then as you need the money, you can pull it out.

There's no penalty at this stage, but there is taxes due on it as you pull it out. And so letting it sit there and grow is a good thing. And that's a beautiful situation you've gotten yourself into. You're 100% debt free. It sounds like you've got income coming in that you're living on without using this money, which is very wise, very well done, very frugal. Sounds like you've got a really good plan, Linda. Hey, thank you for calling, and thanks for listening all these years.

Open phones at 888-825-5225. If you want to talk about life and money, this is your place. Chase is on Twitter. Says, Dave, when you talk about putting the snowball on pause to cash flow things like a move so you don't accumulate more debt, do you still make minimum payments? Well, sure. Yeah, you don't want to get behind on your debts. You got to make your minimums. But that snowball is paying extra on your debt.

Yeah, you want to stay, you know, stay even. We're not trying to get in the hole here. We're not trying to destroy your credit or anything like that. But yeah, pay your minimums and work the thing through. And work the situation through and then get back on the debt snowball, which means paying all you can get your hands on on that smallest debt and clearing it as you go along. This is the Dave Ramsey Show. There's nothing smart about smartphones if your wireless plan is blowing your budget each month. Pure Talk USA offers smarter wireless with unlimited plans starting as low as $20 per month. You never pay data overage fees and we never turn off your data.

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Visit puretalkusa.com or call 844-862-3677. Enter promo code SAVEDAVE and receive 50% off your first month. That's puretalkusa.com. Thanks for joining us, America. Bridget is in Kansas City. Hi, Bridget. Welcome to the Dave Ramsey Show. Thank you, Dave, and thank you for sharing all of your knowledge. You've really got our family in the right direction.

Cool. Good for you. How can I help today? Well, we are currently on baby steps four, five, and six. My husband has a full-time job and a side hustle job, and he has not taken a draw on that. And after gathering all our information for taxes, it looks like we've profited about $30,000 from that side hustle that we haven't touched.

Wow. And I'm wondering if we should bump up the kids' 529s or if we should throw it at the mortgage or if we should go back to baby step three and bump our four months up to a full six months or how we should divvy up this money. Okay. Of course, there will be taxes out of that. There already is. or how we should divvy up this money. Okay. Of course, there will be taxes out of that. There already is.

Yeah. You pay the taxes on it this year. I mean, you're going to have that no matter what. So, yeah. So it's not $30,000. It's $30,000 minus taxes, right? Correct. Okay, cool. And, well, either one of those three things or any combination of those three things is fine.

They all fit the baby steps. It's just a matter of where your concerns lie. How old are your kids? We have four. They are almost 10, 8, 5, and 2. Okay. How's the 529s looking? Are you on track to have enough if you don't soup it up?

Probably not. We've only got about $1,500 per kid because we only started the 529s last year. And are you concerned about the emergency fund being small? Not really. I mean, it's just over $16,000. And your household income overall is what? Not really. I mean, it's just over $16,000. Mm-hmm. Mm-hmm. And your household income overall is what? Including what he made from this will be right about $120,000. Okay. All right.

Well, I mean, if it were me just listening to you, I think your tendency is probably beef these 529s up, isn't it? It is, but I know that if one of them decides to get a scholarship, then we can just roll one over to the next siblings. Correct, or you can withdraw the amount of the scholarship out of the 529 with no taxes or penalties. Okay. If they get a scholarship, The value of the scholarship. So if they get athletic, academic, or otherwise, you know, the whole tuition is paid because they're an athlete, as an example, a scholarship athlete,

then whatever the value of the tuition is can be pulled from the 529 with no taxes, no penalties. So there's no harm, no foul there. And, you know, you're dealing with 10-year-old, 8-year-olds. We don't know any of this yet. Right. Yeah, I think I'm probably playing a little catch-up on that 529 because I want that box checked so I can move on. Okay.

Thank you so much. Hey, thanks for the call. I appreciate you joining us. Gwen is with us in Massachusetts. Hi,wen welcome to the dave ramsey show hi dave first of all i want to say thank you so much for the impact you're making around the world thanks to you 17 years ago uh we were exposed to your program through our church the pentecostals of murfreesboro there in murfreesboro tenn, and we're able to fully fund a one-year mission term in three months from the time the Lord called us. Wow.

And it's just because we were debt-free. Wow. And now we live in one of the most expensive parts of the country, and my husband's a full-time pastor, and we live on a modest income, and it's just possible because we're debt-free. Good for you. So thank you. But I have a question. just need your wisdom on. Seven and a half years ago, my husband's grandfather passed away.

And he was a very frugal man. He was a pastor himself. He prepared for his family. And in his will, he left two homes. Both of them were paid for, and we are now part of a partnership with those two homes that are rented out with my husband's dad and his brother. My father-in-law is 50% ownership, and then my brother-in-law and my husband and I split the other 50%. There is emotional attachment to the homes on my father-in-law and my brother's part,

and they live in the south in the area where the homes are. We, of course, are in Massachusetts. The money is just being put into a checking account for the expenses of the homes. We would much prefer, of course, because we live literally the other part of the country, just to be bought out. We're not long-distance landlords. Nobody in the family are handymen. So any repairs are, you know, we have to hire someone to do it.

And so anyhow, anytime we bring up, you know, possibly them buying us out, because we are now in a harsh part of our lives where we need to cash flow a daughter's college education. We need to start retirement funds. There are things like education we need to start retirement fund there are things like that we need to do and and and we want to see some investment on that money um they don't have the money to buy us out we are paying um taxes on that the income that comes to us every year is between three and four thousand dollars so we're trying to figure out what is a reasonable way to present to them, okay, if we, that annual income of $3,000 to $4,000, we'll allocate this percentage to stay in the account for repairs to the homes, you know, miscellaneous this and that.

But we would like to get this percentage of the annual income as income since we are paying taxes on it, and we really do feel like we could put it to good use. Okay, so there's two properties, two houses. Correct. And what are they worth each? Each is about $60,000, and then that was seven and a half years ago. It's in rural Alabama.

It may be a little bit more than that now, but somewhere around there. Okay, and you own a fourth. Correct. A third. A third. A third. I guess my father-in-law owns 50%, and then the other 50%, my brother-in-law and my husband split. That would be 25%. Yeah, yeah, you're right.

I'm sorry. Okay. All right. And so dad and brother, somehow in combination, if they were to buy you out, would need to come up with a fourth of $120,000, so $30,000. Correct. Okay. Minus, if you were to sell all the properties, you'd have expenses, so your fourth is probably worth $25,000 or less. Yeah.

Okay. So they can't come up with $15,000. $15,000. Doesn't seem like it okay it's not um it's not being when we presented it we've just gotten back no it's not possible well obviously you're not the one to push this it would be your husband because it's his family right right, absolutely. I think he just gets on the phone with both of them and says, Guys, look, we don't want to be in this anymore.

And so we need you to put something together. We will accept a deep discount. And so, I mean, we'll take $15,000 for our 25%, which is half off, you know. But we need out. And you guys run down to the bank and pick up a little loan for $15,000 and buy us out. Or, you know, buy us out over a two-year period of time. Give us $7,000 this year, $8,000 next year, and we'll call it even. Or whatever.

I mean, but discount it and make'll call it even. Or whatever. But discount it and make it to where it's a great deal for them, but it gets you out. Because there's more to this than just the money. There's the frustration with your lack of control, and you feel like you're kind of being jerked around a little bit in a little bit of a southern, passive-aggressive way. And I could hear that in the way you were describing this.

So you were being very sweet, but that's what's going on too. So it's worth it to get out of this. It's going to be good for your relationship to be clear of it. And I think your husband just pushes this a little harder with his brother and his dad on the phone or next time you're down there, one of the two. This is The Dave Ramsey Show. Larry is in Amarillo, Texas. Welcome to the Dave Ramsey Show, Larry. Thank you very much, Dave.

Thank you for talking with me here. Sure. How can I help? Well, what I've got, where we're at is we lack about $100,000 paying off our house. Everything is all paid for. I've been in the contracting business for nearly 45 years, and we've got all our business expenses paid. We put all our money towards this home that we are turning into a wedding venue. And I am getting within two months now of being 62. So I guess one of my questions is, is it better to take the Social Security benefits at 62 or should we wait until full benefits at 65 or 66, whatever that may be? Well, the way you can do the math is you can pull your benefits up and say, what would I get now at 62, and then what would I get at 67?

And you multiply the difference, the amount you're going to get today times five years, 60 months, and you would put that into an investment, say, and then you would use that investment to pay, say, and then you would use that investment to pay you that extra money that you would have gotten were you waiting until 67. When you do that math, you're going to find it comes out better to go ahead and take it early. Now, if you take it early and just consume it, lose the money, then you're, you know,

eat the money or whatever, then you're gonna um end up not coming out ahead long term in your case it sounds like you're trying to reduce the mortgage with the money and that would be fine uh you'll come out fine that way uh and then the other questions are you know how are you going to eat going out there all the way out there have you got other money other than social security coming in that you can live on so that this becomes just more of a mathematical discussion rather than a survival discussion but if you can if you've got the money to live on then uh you're better off to take it early and invest it or take it early and do something like uh pay down on the mortgage either one of

those would be fine with me so it sounds like that's where you are, and you're probably smart to go ahead and take it, and let's throw every dime we can get our hands on at this mortgage, get that stuff cleared up so that as you head into your retirement years, up into your 70s and stuff, this thing's paid for, and you've got the wedding venue working and creating income for you without any debt payments. Devin is in Seattle. Hi, Devin.

Welcome to the Dave Ramsey Show. Hi. Hi. How can I help? Well, so my wife and I, we are receiving a rather large sum of money this year. And it's like we want to buy a house, but our family and friends tell us that that's what we should be doing. But the problem is that we live in a very expensive area, and we really love where we are.

The schools are great. We have a lot of friends here. Our church is great here. And if we were to want to buy a house, we'd have to move somewhere if we wanted to buy a house this year. So we're wondering, are we insane to wait a couple of years and try and save more money so we can buy in the area that we currently live in? Because the rent here, we can afford that. But housing, actually buying, that's not something we can do right now. Okay.

Yeah, no, that's not insane. It's your goal. It's your life. It's where you want to live. It's not where your friends want to live. They can live wherever they want to live. Your family can live wherever they want to live. This is where you want to live.

And in order for you to buy there, you're not ready is what you're saying. Yeah, yeah. We just, I mean, there's been a lot of talk about, like, the housing market. Is it going to go up? Is it going to go down? And that was kind of the thing where we were a little struggling. Pretty much, pretty sure the housing market's going to go up and the housing market's going to go down. Interest rates are going to go up and interest rates are going to go down.

But I don't think it's going to ruin your life. Okay. You know, I mean, you're just not ready to buy a house, so you don't buy a house. You don't run by a house out of fear of what might happen in the future. That doesn't make sense at all. So how much money are you receiving? About $460,000. Rowdy.

Good for you. Very cool. And you're debt-free Rowdy. Good for you. Very cool. And you're debt-free? Yeah. Uh-huh. Good. And what's your household income? About $200,000.

Very good. And so what's the price range of the homes in your neighborhood that you want to live in? The neighborhood that we currently live in, if you want a four-bedroom, they range from $850,000 to $1.2 million. Okay. And if you put $400,000 000 down you can't afford that on making 200 grand well um property taxes here run about anywhere from eight to nine hundred dollars a month and that's what messes it up if the property taxes weren't so high we could definitely afford here but we're trying to keep that within that 25% range.

That's $10,000 a year. Uh-huh. That shouldn't mess up everything. I don't know. I mean, it sounds like you're pretty close, but if you put it on a 15-year fix, you calculated it up, and it's more than 25% of your take-home pay. Yeah, yeah, exactly. Like the maximum that we're at right now with what we have by the end of the year,

we're looking at about $700,000 would be our maximum right now with about three. Well, because like that $460,000 is going to have a lot of taxes on it. Oh. So we're looking at putting about $350,000 down. Oh, okay. Because it's actual income okay that's why this is okay cool so i mean so what what where did the money come from what was the event uh it's actually um our company got acquired and so it's it's stock and stuff like that from there

wonderful okay any more coming or any other yeah the next two years we'll receive about another $300,000. Oh, well, wait and do it then. Yeah, you're right. Okay. Now that I'm getting a complete picture, I completely see why you're tapping the brakes. We're just going to sit here. But, I mean, and so the market's not going to shoot up $300,000 in two years. Yeah, that was our thought.

It hasn't in the last two. Yeah. And so, I mean, Seattle's a good market it's a great market and obviously you're in a nice neighborhood with those prices but no no no no i'm gonna i'm gonna do exactly what you're talking about i think you totally got this figured out and no you're not crazy i think you're being very wise good question thank you for joining us. Open phones at 888-825-5225. This is your show. Phillip is in Orlando, Florida.

Hi, Phillip. Welcome to the Dave Ramsey Show. Hey, Dave Ramsey. How are you doing, sir? Better than I deserve. What's up? All right. I have kind of a car problem.

Basically, I still like I'm trying to see. Okay, you're not speaking directly into your phone. You're going to have to do that. I can't hear you. Okay, I still owe like almost $15,000 on my car, but I'm upside down on it. So it's only worth like, private sales, probably like $10,000. Okay, so you're five in the hole. I got you.

Yeah. Okay. And what do you make a year? I make 15 hours, so probably close to $30,000 maybe. Okay. What do you do? I'm a department manager at Walmart. Okay.

Good for you. Okay. All right. I'm sorry apartment manager at Walmart. Okay, good for you. Okay. All right. I'm sorry. Go ahead. I'm just trying to see what would be the best thing to do to get out of this car loan. Well, I mean, it's a lot of car for your income. It's a lot of debt for your income. It's a lot of debt for your income.

The car itself is probably not that far out of line. We don't want to own the total of your vehicles, things with wheels and motors, and there will be more than half your annual income because of that. So can you pick up more hours or take a side hustle and get your income up? Yeah, I'm pretty sure I can get me a second job okay all right yeah i mean um ubering delivering pizzas something like that i mean you start making another 1500 a month you can pay this car off in what less than a year though all of that right you know 1500 a month 10 months you'd be done right right just pay the whole thing off

and keep it unless you just hate the car and otherwise you pay you pay it down and sell it if you don't like it. But let's get it where it's right side up. But, yeah, I think another $1,500 a month and live on your $30,000, live on your $15 an hour deal and pick up some PT and just attack the thing with that. Some part-time work, some overtime, something along those lines. I think that'll be a great way for you to do this. So, hey, really good question. Good job, man. You're thinking.

You're focusing on it. Very well done. You're going to win. That puts us out of the Dave Ramsey Show and the books. Our thanks to James Childs, our producer, and Kelly Daniels, our associate producer and phone screener. I'm Dave Ramsey, your host, and we'll be back. This is James Childs, producer of The Dave Ramsey Show.

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