The Ramsey Show - App - How to Save for College and Retirement Simultaneously (Hour 3)

Episode Date: June 21, 2019

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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. I'm Dave Ramsey, your host. Thank you for joining us. Open phones as we talk about your life and your money right in front of you. The phone number is 888-825-5225. That's 888-825-5225.

Christiana is with us in Evansville, Indiana. Hi, Christiana. Or it's Christina. I'm sorry. Hi, Christina. How are you? Hey, Dave. I'm doing well.

Thank you. Sure. What's up? Thank you so much for taking my call. I'm really nervous. Oh, that's okay. We've never lost a patient. What's up? Okay. Okay. So my husband and I first started the total money makeover at the beginning of our marriage, which was about 15 years ago. And we have been contributing to retirement for a while now. And so my question is about retirement. I'm just a

little bit concerned because I want to make sure our Monday is working the most that it can for us. My husband is a minister. He's actually a staff pastor, and the organization that we started contributing to a 403B plan at the time was a different denomination than we are now so um we have about 70 000 in that 403b but we cannot keep contributing to that um and we also have a couple of different rods that we are contributing to but um a great benefit at retirement um because as ministers if you take so you do a 10-year payment plan on that 403b at retirement where we would get a monthly installment and if we used it for housing or anything related to housing expenses it would be tax-free so it it goes into the account pre-tax dollars, and then

we can be tax-free on that. However, if we are not using it for housing, then it's like taxed at 20%. So my question is, I don't know if I should move that money. There's a little bit of a penalty with that. I think it may be 10%. I just don't really know what to do if I'm missing out on the compound effect of that money with RODS. I was just going to see what you advised me to do. How old is he? How old is he? My husband just turned 40, and I'm 39. I would roll it to an IRA because you're going to build more wealth than the benefit of it being tax-free for housing.

Because, of course, our goal is to have your home paid for when you get to retirement anyway, so your housing costs shouldn't be high at that point. Right. So you're going to build more wealth, and you won't need it for housing if you follow through on the other stuff that you've learned over the years. Right. And so, yeah, I would get with a SmartVestor Pro, and I would roll that to an IRA. And, you know, across the four types of mutual funds, we talk about all the time,

growth, growth and income, aggressive growth, and international. And then going forward, of course, you're making sure you are investing 15% of your income. If you're at baby step forward, it sounds like you are, into your retirement plan every year. And that can be Roth IRAs and or the plan that the current denomination has available to you, whichever it is. But in either case, we want to go Roth first. We want to go match first, up to the match. And then other than that, we want to go Roth and then pass that traditional. But in this case, this account is, like you said, it's dead.

They're not adding anything to it. And you're not allowed to add anything to it, so I would go ahead and roll it. Elliot is with us in Albany, New York. Hi, Elliot. Welcome to the Dave Ramsey Show. Hi, Dave. Nice talking with you. Short-time listener, but I'm enjoying it so far.

Thank you. How can I help? Absolutely. So here's my question. So I'm a physical therapist. I graduated school a few years ago, and my goal was to get rid of my student debt. So I started doing travel physical therapy because of the tax benefits, because of the non-tax housing stipend and meal stipend. And I've been able to clear my student debt. How is your housing and meal not taxed? Because it's considered short-term living.

Oh, it's a business expense. I pay rent at home. A business expense of traveling. Correct, because about every 90 days I move. Okay. And so what are you making? So I'm making about an average of $7,500 a month after tax. Wow.

So you're knocking down like $120. That's sweet. Right. That's sweet for a PT, man. You're doing good. All right. And how much debt did you pile up? So, let's see. I started with a little over $100,000, including car loans.

And I've paid off about $75,000 of the debt. You're almost done. Yeah. Way to go, man. Well, thank you. So, now the next crisis, I feel like, and I'm trying to figure out what you would advise, is I still have about 25 or so between two cars. And, you know, the travel thing, you know, I have a kid that's one and a half now and one on the way. So I'm thinking we're going to try and settle down relatively soon.

So buying a house comes into the picture. So now I'm trying to juggle, am I going to keep aggressively paying those car loans or save up for a house? Now, you don't buy a house while you have debt. We need to clear the car loans, either sell the cars or pay them off before you buy a home. I want you to be debt-free. I want you to be through what we call Baby Step 3, and that's debt-free and have your emergency fund in place, plus save your down payment, your emergency fund of three to six months of expenses if you move into a house and you've still got debt um you're asking for murphy to move in the home with you you know you're gonna need an extra bedroom just for these cars and uh you just it just your house will not be a blessing it'll be a curse when you move in on the a wing and a prayer

and a pile of debt so clear those cars you've done really well just go ahead and play through knock those out either get them paid off or sell them one of the two but either way that debt's gone and then build your emergency fund from there of three to six months and then start saving your down payment and i have i have we have enough money to pay off the loans oh i do it today but if the interest if we've paid most of the interest, why? You haven't paid the most of the interest. You have a traditional car loan. What's your interest rate on your car loan?

I think it's 4.1 on the one. Okay. You do not have a rip-off finance company loan that has the interest prepaid. The reason the interest is higher at the early parts of the loan the dollar amount is higher is because the balance is higher right the only interest you paid is what's called simple interest which means you have paid interest the the amount your of your payment going towards principal has increased because your balance has gone down so the interest paid is going down but you haven't prepaid any interest.

You've paid the exact interest every month that was due on the outstanding balance, plus something on the principal. But as the balance has gone down, you've put more and more towards principal. But it wasn't prepaid at all. Now, you need to pay those cars off, and I would write the check and do it today. Today? Oh, that's difficult. It's so scary to have so little in the bank. It ought to be scary to have $25,000 in car loans.

Okay. Hey, you do what you want to do, but that's what we're teaching around here. The shortest path to wealth is not having any payments. I don't feel like I have no payments. And with the money you're making and the money, the progress you've been making, you'll have money back in the bank next month. I mean, you'll have money back two months from now. You're going to have a big pile of money.

By Christmas, you're looking for a house. You're doing good, man. Play through. Play through. This is the Dave Ramsey Show. Are high health care costs getting you down? Are you confused trying to navigate your options? Do you wish you could find an affordable, biblical solution to your health care costs? Based on New Testament principles, Christian Health Care Ministries, or CHM, helps Christian families, churches, and ministries join together as the body of Christ

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Raven is with us in Starkville, Mississippi. Hi, Raven. How are you? I'm good, Dave. How are you doing? Good. Better than I deserve. How can I help?

Okay. I'm good, Dave. How are you doing? Good. Better than I deserve. How can I help? Okay, so I just graduated from physical therapy school last month, and I start working at the end of August, and my grace period is until November, and so I'm not sure which repayment plan I should take. Okay. How much debt do you have, kiddo? $150,000. $150,000. So how much are you making as a physical therapist?

The job I have, I'm making $65,000. Okay. All right. And what do you think your increases are going to look like in the next three or four years? In three years, I should be up to about $ maybe 80 yeah depending on how i can i'm hoping you can get up towards 100 as a physical therapist and it made it may dictate that you live in a different area i don't know but you can generally get up close to there within three or four years of starting your career if you continue to grow and push and grow and push. So $150,000, you're single.

A year ago, you were a broke college student, and now you're a broke graduate. Right. Okay, but you're used to living on nothing. Right. I'm going to recommend you continue that. Now let's do some simple math. $150,000 divided by three is $50,000 a year. I don't think you can do that on $65,000 pay taxes and eat.

So it's going to take longer than 3 years, isn't it? Yes. $150,000 divided by 5 is $30,000. That's doable making $65,000, especially considering you're not even used to having money. Right? So you're going to live on nothing, and somewhere between four and five years, you're going to be debt-free during that time. And you're also going to take any extra job as a physical therapist you can anywhere,

in addition to your full-time gig. And the faster you do that that let's just pretend you picked up another 30 000 oh now wait a minute we just cut that down from five years to three years okay so that part-time job thing's a big deal if you can get some work in you know uh i don't know doing whatever but you know weekend yeah i'm working on that now. Yeah, weekend ER stints or whatever it is, wherever you can pick up something. And just, because here's the thing. You either are going to pay this off real slowly, and it's going to be a long lot of pain, or you're going to pay it off real fast, and it's a rip the Band-Aid off.

And you're just going to have no life for a shorter period of time so that you have a great life later. You're going to choose one or the other because this is not going away. Right. So I'm going to choose to rip the Band-Aid off, work like a crazy person, and get this done in three to five years. But I'm thinking three years when you pick up extra raises and extra jobs and overtime and all that kind of stuff.

So thanks for the call. Andrew is with us in Boston, Mass. Hey, Andrew, how are you? I'm doing well. Thanks for taking my call, Dave. Sure. What's up? So I actually just came across your YouTube stuff like the weekend, and it's changed my life.

Just finished the Total Money Makeover. Wow. And I really want to get out of all the debt that I have now. I'm about $65,000 in debt between student loans and my car. And my fiance is about $45,000 between her car loan and her student loan. What do you owe on your car? How much do you owe on your car? How much do you owe on your car?

I owe $11,000, and I think she owes $12,000. Okay. And what do you make a year, sir? $45,000. And what does she make a year, sir? $30,000. And when are you getting married? Actually, October.

Awesome. Man, this is great. Good for you guys. Thanks. Okay. How can I help? Thank you. So right now I'm working Monday through Friday, 8 to 5,

but I really want to crank down and live like no one else now so I can live like no one else later. But I'm trying to utilize all that extra time outside of my full-time job to work in different jobs. And right now I have a couple interviews lined up, like working as a cashier at a liquor store, working at a country club, even like doing some stuff with Doppler as like entry level tech stuff. I was curious what your thoughts are on the best kind of path to go down when it comes to trying to do those part-time jobs

or just trying to get a little bit of extra cash. The part-time job has one purpose and one purpose only, and that is money to pay on the debt. It is not your career. It's not affecting your career unless you do something that negatively affects your career. But, I mean, it's not a career choice issue. And so there's only one gauge we use for what the proper part-time job is, the one that pays the most. That makes sense, yeah.

Where can you get the most money in the shortest period of time without doing something illegal? I mean, that's what it comes down to. How fast can you get some money? And even if it's unpleasant, it's for a short period of time, even if it's not what you don't want to do and you really don't want to remember even that you had to do this but i mean if you can make a hundred thousand dollars a year cleaning septic tanks with a spoon

that's a great part-time job absolutely i don't think that's available by the way but you could do you would do i mean be highly unpleasant right but we would do that because you'd be out of debt in like 20 minutes, you know? Absolutely. So, you know, that's what we're talking about. Do something highly unpleasant or whatever it is that you don't want to do. You're going to work like no one else, so later you can work like no one else. Kind of like I work now kind of when I want to, you know, which I enjoy what I do, so I work a lot.

But it's just because I want to. I don't actually need to. And so you just why because i paid a price for the last 30 freaking years doing this and you know we we used to work all the time because that's what it took and and so get a business launched and so forth so you're doing the same thing with cleaning up your debt here and you're on bead man you're gonna do great i'm proud of you you guys are you got you got everything in your sights here you've got to dial in you know exactly what is owed why it's owed where when it's owed you can i can see you you know you're gonna

be making 75 000 a year plus a part-time job you got 100 grand between you and that um you're gonna be debt free in two years two and a half years um that's what's gonna happen you know you know so easy you know probably about two years because you're just chomping at the bit to go work. And, you know, work is just a surefire money-making scheme. You know, it's a good thing. So I'm proud of you. Well done, sir. Very well done.

I think your fiancé chose well. Trish is in South Dakota. Hi, Trish. How are you? Hi, Dave. I am better than I deserve. Thank you for taking my call. Sure.

What's up? Well, I am wondering, my overall question is, where's the magic line between when we focus on retirement savings to when we focus on college savings for the kids? When you say, like, fully fund your retirement, I mean, is there ever truly a thing? And then you're just completely done, and then you switch. I mean, I get that you can work on things simultaneously, but I just don't know where to focus. Fully fund. No, we say fund college is baby step five. Fifteen percent of your income going into retirement is baby step four.

So I'm assuming, since you're asking this question, you're debt-free except your home, right? Correct. And that you have your emergency fund of three to six months of expenses in place. Okay. That puts you on baby steps four, five, and six simultaneously. Simultaneously. Four gets 15% of your income going to retirement. Five gets college. And six, if there's anything left, goes towards extra on the house. The way you're asking this question tells me the house is probably not going to get much attention until we get some college stuff done here. Well, just because I think, I mean, we're on a pretty good plan with the house, and we know when it will be paid off.

Yeah, but if you didn't have college in the way, you'd put more on it. Probably, yep. That's my point. So how old are the kids? The oldest is 12 okay cool and so we've got some time and um we've got some you know a chunk toward our retirement with maybe 17 years left till retirement i think your household income is what um about 100 i would say right now and that's been without me working. I'm a registered nurse by trade, but I've been able to stay home for quite a few years.

Just two. Okay, cool. I mean, I think you're putting 15% of your income, no more, no less, into retirement, and then you're going to sit down with your smart investor pro and lay out a game plan where you get busy because you've only got got six years and let's get college moving get that going and i wouldn't pay extra on your house until you had college really working and underway here because six years is going to go by in about an eye blink this is the day ramsey shot Thank you. Matt and Alexis are with us in Albuquerque, New Mexico. Hey, guys, how are you?

Great. How are you? Better than I deserve. I see on my screen you're debt-free. Congratulations. Thank you so much. We appreciate it. Well done. How much have you paid off?

We paid off $24,000 in about nine months. Way to go. And your range of income during that time? About $80,000. Okay. What do you guys do for a living? I'm a pastor, and Alexis is a nurse. Okay. What do you guys do for a living? I'm a pastor, and Alexis is a nurse. Okay, fine.

What kind of debt was the $24,000? It was a combination of student loans that I had from ministry school, and then it was also some credit cards, and then I financed a motorcycle. And so it was a combination of all those things okay all right so how long have you two been married about eight months now oh so that's what started all of this huh so you decide you're going to get married and so we got to get on the debt snowball we got to get this debt cleaned up is that what happened yeah um so we got engaged back in 2016 and at the time we were both living in separate cities um and we just made the decision to take the fpu class together

but in our separate cities and just take time out each week to talk about what we learned and we really want to start our marriage off on the right foot very good wow what a wonderful thing so the first nine months our first eight months of your marriage you're plowing through this debt immediately what do you tell people the key to getting out of debt is yeah so um the thing that we keep telling people is you know you've got to make sure that uh you stay disciplined and make the right sacrifices you know for us we were just just incredibly intentional about setting up our lifestyle to just live on one income so that we literally can just throw an entire income at that debt, and that's what helped us pay it off so quickly is moving into a house

that was far cheaper than what we needed. We made sure we didn't have any car payments and really just lived, again, under that cap of one income. Yeah. Well, that gives you a lot of options then. And for the rest of your life, it does. I mean, that's pretty amazing if you can hold to that. So what kind of a ministry are you? Are you a senior pastor or what kind of a pastor? No, I am a small groups pastor for a church now here in Albuquerque. Okay, excellent.

Okay. Well, you definitely know one thing the small groups need to be talking about, don't you? Yeah, absolutely. You know, when our church kind of rolled out at TU, I didn't know what it was, but I was responsible for it, you know. So it was like, you know, we're going to do this. I had no idea what it was, and know. So it was like, you know, we're going to do this. I had no idea what it was, and we began to take the class,

and I realized, man, this isn't something I just need to teach people. It's something I needed in my life as well. So it was something that really put me on a journey while we were putting people in the church on it as well. You know, I was talking to a group of pastors the other day, telling them that all the data points we have and working with over 50,000 churches now over the years, the churches that are growing are always serving a felt need in the community. They're serving, they're teaching people how to be married according

to the Bible. They're teaching people how to raise kids according to the Bible, how to handle money according to the Bible. And when they touch those different needs in people's lives with a biblical truth, that church tends to grow and prosper. So congratulations, Matt. You guys are doing good work. Thank you so much, man. We really appreciate it.

And you're spot on. You're exactly right. Very, very well done. Proud of you, too. Did you have people cheering you on? I mean, you're leading the whole dadgum parade. I guess you did. Absolutely, we did. We had an incredible support system. Yeah. Did anybody tell you you're leading the whole dadgum parade. I guess you did. Absolutely, we did.

We had an incredible support system. Yeah, did anybody tell you you're crazy? Yeah. We have, yeah. Yeah, you know, I'm driving an old car, and I got people talking to me all the time about buying a brand-new car, and we just keep saying, no, we're never going to do it. Yeah, very cool. Well, very proud of you, too.

Thank you for leading the classes there. And what a great way to start your marriage. Awesomeness, guys. Awesomeness. We're going to send you a copy of Chris Hogan's retire-inspired book, number one bestseller. And that's the next chapter in your story, to be millionaires and outrageously generous as you go along. And I've got a feeling with a nurse and a pastor that we won't be able to stop your generosity so very very well done very good stuff matt and alexis albuquerque new mexico 24 000 paid off in nine months

making 80 000 a year count it down let's hear a debt-free scream. Yeah, three, two, one. We're debt-free! Yeah! Yeah! This is how it's done. This is how it's done. Wow. You know, what's interesting is in our world, the self-improvement world that we live in, the Ramsey team lives in, we don't do live events in the summer because you guys are too busy going on vacation and getting in debt.

And we don't do live events between Thanksgiving and Christmas because you're too busy getting in debt to go to a live event then. And so our business has a seasonal aspect to it, particularly the ratings, talk radio ratings in general go down in the summer. Because when you're on the beach, just listening to me just doesn't work. You need music, right? I mean, I get that. I understand. I mean, what kind of nerd would listen to Dave Ramsey on the beach?

Seriously. But talk radio ratings in general go down, and you don't want to listen to, you know, Sean Hannity, Rush Limbaugh, you know, yell and scream about politics when you're on the beach. You want to hear music. I do. Anyway, I'm on the boat. I don't turn on talk radio. I mean, really.

So I get that. So summertime, people kind of go into coast modes, what I'm saying, you know, and, you know, family vacations, backyard grilling, 4th of July is coming up, you know. And here's the problem. You can't let your being an adult go on vacation. It's okay to go with the rhythm of life. But you can't say I'm going to spend the whole summer seriously going to the dad. I mean, that's just, that's stupid.

And you can't not do your budget. You have to do your budget. And you have to still be doing the smart stuff. Now I get it that you're going to focus on family and enjoy your summer. And I want you to, I'm going to enjoy my summer. I can promise you that, but there's a simple trick that'll keep you from losing out on investing through the summer. If you set your contributions up to happen automatically, I've set almost all of my investing in mutual funds to happen automatically. It comes right out of my checking account. Every month, boop, just like that, I made an investment.

And even if I was looking at something else and I was sitting on a cruise ship somewhere, boop, there was an investment. Happened anyway. And so don't put off investing for the summer. Don't put off investing for the summer. Don't put off budgeting for the summer. Don't put off your debt snowball for the summer. And if you want to get started with your investing, maybe while you've got a little bit of time on your hands,

it's a good time to actually sit down and look at your overall investing strategy. You might actually have a little margin, you know, schedule-wise right now to do that. So jump online at DaveRamsey.com, click SmartVestor. Now, if you don't know what this is, we at Ramsey are not in the investment business. We do not sell insurance, and I don't own any portion of an insurance business. We believe in insurance, and we endorse Jeff Zander and Zander Insurance for Life Insurance. we think you ought to do it. And I'm a customer of his and we don't sell mutual funds. I'm not in the business.

I believe in them. I buy them and I recommend you buy them, but I don't make a commission when you buy a mutual fund. Nowhere, no how I do get paid an endorsement fee for endorsing people in different industries because I'm in the radio business. That's what I do. Get paid an endorsement fee for endorsing people in different industries. Because I'm in the radio business, that's what I do. The SmartVestor pros are people that we endorse. And they will meet with you with the heart of a teacher and sit down and help you lay out your investment plan.

And you need to do that. And you can put it on autopilot for the summer if you want. Or if you've got a little margin here in the summer, you can sit down and unpack and start to know what you're up against and what you can do with that Roth IRA rollover or that 401K rollover or whatever it is. Just click SmartVestor at DaveRamsey.com, put in a little information. It'll drop down a list of the SmartV smart investor pros in your area that we recommend you select which one you want. And you'll find them to be the kind of people that you'd expect them to be if I recommend them. They've got the heart of a teacher. They're going to give you advice that

sounds a lot like what you hear here. They better. They won't give my endorsement otherwise. That's how this works. Because I want you to be taken care of. You matter to us. This is the Dave Ramsey Show. our scripture of the day Habakkuk 319. The sovereign Lord is my strength. He makes my feet like the feet of a deer. He enables me to tread on the heights. Alexander the Great said, I'm not afraid of an army of lions led by sheep. I'm afraid of an army of sheep

led by a lion. That's good. Brittany's in Dallas, Texas. Hi, Brittany. Welcome to the Dave Ramsey Show. Hey. Hey, Brittany. Welcome to the Dave Ramsey Show. Hey. Hey, what's up? I'm just calling to get some advice about how I could get out of debt. Okay.

How much debt have you got? I have $65,000 in debt, 24 student loans, $15,000 in credit card debt. I have a personal loan, about $4,600, and I just got married, so my husband has about $50,000 worth of debt. And how much of this is cars? My car is $16,000. His is $8,000 worth of debt. And how much of this is cars? My car is $16,000. His is $8,000. Okay. Man, you guys got a lot of debt.

Yes. What's your household income? He makes $50,000. I make $36,000 with the potential to get a bonus of $1,000 every month. Okay. So you make $36,000 and you ran up $1,000 every month. Okay. So you make $36,000 and you ran up $15,000 on a credit card. $15,000 in credit cards, yes. Ouch.

I know. You've been spending like you're in Congress, kiddo. I know. You ready to stop? I am. I've closed the majority of them, but we wanted to keep open maybe a few, you know, just in case. Just in case they're working for you. I know.

You got $15,000 of just in case. Mm-hmm. So I think you need to get some scissors out and have a plastic surgery party tonight. You and your husband chop up all these credit cards. That would be a good first start. Are you willing to do that? I'm willing. I mean, it's me because before we got together, he didn't have credit cards.

Are you willing to chop up every credit card tonight, yes or no? Yes. Okay, good. Good. Are you willing to never go to a restaurant until you get this cleaned up unless you're working there? Yes. Okay. Are you willing to cancel your vacations until you get this cleaned up unless you're working there? Yes. Okay.

You're willing to cancel your vacations until you get this cleaned up? Yes. Because that's what it's going to take. Because you have an $86,000 income and $100,000 worth of debt. You in deep stuff. I know. But there's another thing. I've been a bill collector for the past six years, and I'm in school, and I'm paying for that out of pocket.

I want to eventually stop working so that I can take this program, occupational therapy. I know I'll be able to get a part-time job to pay a car note and help him with the household bills. Well, I think you got about $100,000 worth of problems between you and getting that degree. I want you to get that degree. I like your idea, and I want you to head that direction. I think you're probably trying to get there quicker than you need to. Right.

I think both of you need extra jobs, and you guys are going to have no life, beans and rice, rice and beans, and you lean into this. And if you'll do that, I can show you how to clean this up. But you're going to have to be more committed than you are right now. i know you so would i put off school is that what you're saying yeah probably or put off put off quitting your job anyway i mean if you can go to school if you can put go to school and pay for it that's fine but i want you i want this off your back because think about what it would be like can you even imagine what it would be like if you had no payments? Right. I have 600. The loan is going towards credit cards.

Yeah, you'd have money if you had no payments. Like a lot of it. I know. Even being a collector. That's the irony of this conversation, isn't it? But, yeah, I think the thing is that you can really be one of those people that you call every day for the rest of your life, or you can decide to change your life right now. Today's your day. And if you can get him on board, if the two of you will get after this, I'll show you how to do it. But I got to tell you, the prescription that Dr. Ramsey is going to give you is going to taste bad. I know.

It's going to be rough. The next two years of your life are going to suck. But you're going to live like no one else, so later you can live and give like no one else. Right. That's what Sharon and I did, kiddo. I mean, we were broke. We couldn't even pay attention. you can live and give like no one else right that's what sharon and i did kiddo i mean we were broke we couldn't even pay attention i mean we we were just we fought all the time about money stress fear fear anxiety lump in your throat sweat right above your eyebrows and in the palms

of your hands you ever had that happen yes i give it takes two weeks to get a check in five minutes it's like it's done so all of that tired of being a rat in the wheel right run run run run get nowhere yes if you're ready to change it's gonna hurt but it'll be but it'll work i'll show you exactly what to do but you're gonna do it and if you don't do it it's gonna be your fault not mine okay right i know i'm going to pay for you to go through financial peace university it's a one it's a one-year membership and you go to nine lessons in a group right there in dallas there's a bunch of them operating in dallas right now i'm going to pay for it i'm going to give it to you for free, okay? Okay. Because I've been where you are.

I've been scared. How old are you guys, 28? I'm 29. He's 32. Yeah, almost like I've done this before. Yeah, good job. You can do this. That's exactly how old I was when I was broke.

I can't, but I don't want to put off school. You're going to put off a lot of crap, kiddo, or you're going to live the rest of your life like you're living right now. I know. I don't want you to put off school either, but you're broke. You're $100,000 in debt. I want you to be very afraid. So afraid you do something about it. Like the doctor says, if you don't lose 20 pounds, you're going to die. So what are you going to do? You're going to lose 20 pounds by God, right? this is this is the game you're in now you got to decide because you can't play you

can't do ish i'm doing financial peace university ish ish you'll get you ish that's all it'll get you so if you'll submit yourself to this process five million people have gone through this class i'm giving you then the ones that submitted themselves to this process, five million people have gone through this class I'm giving you. And the ones that submitted themselves to the process have completely changed their lives, and a lot of them are millionaires as a result. But that's ten years later. You got your degree and you're making $100,000,

and you're debt-free, and that's the 40-year-old you. Or the 40-year-old you is going to look back at the 28-year-old you and go, you're stupid. You should have done that stuff that man told you to do. Right. It's going to be one of the two. There's no in-between.

There's no ish. So don't do this if you're going to ish because you're just going to be aggravated. Ish doesn't work. Dave, ish. Truth,'t work. Dave, ish. Truth, ish. Sort of, ish. Do it. Do it.

You hold on. I'll have Kelly pick up. The only thing I ask for you to do is to promise to attend all nine lessons, you and the husband, and I will show you how to do this stuff, and I'll convince you that it's going to work. Why? Because it will work. It will work if you'll do it. This will get you out of debt, and you're going to have a really painful two years.

You're going to live like no one else, so later you can live and give like no one else. I will show you how to get not only up to ground zero, because right now you're in a hole. We'll get you back up on top of the ground first, and then we'll show you how to build a millionaire life. And that's what these people do. They follow this stuff. It's what happens to them if they don't do ish. Now, you want to adapt and you want to write your plan, you can write your plan, but you're broke, so your plan sucks.

Follow mine. It works. And this is not because I'm arrogant, but because we have a track record of helping literally millions and millions and millions of people do this. So today's your day, kiddo. Decide if you is or if you ish. Which is you?

And everybody's got that day. This is yours. What are you going to do? And when you get out and you're wealthy someday and you find somebody that's scared to death like you are, you pay for them to go through the class. Pay it forward. Hold on.

Kelly's going to pick up. We're going to pay for you to go through. That puts this hour of the Dave Ramsey Show in the books. We'll be back with you before you know it. In the meantime, remember, there's ultimately only one way to financial peace, and that's to walk daily with the Prince of Peace, Christ Jesus. Hey, it's Kelly, associate producer and phone screener for The Dave Ramsey Show.

If you would like to do your debt-free scream live on the show, make sure you visit DaveRamsey.com slash show and register. We would love for you to come to Nashville and tell Dave your story.