The Ramsey Show - App - How to Save Money on Household Items (Hour 1)

Episode Date: May 2, 2019

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Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studio, it's the Dave Ramsey Show, where your money and your life are the focus. I'm Chris Hogan filling in for Dave, and we're excited to talk with you, America, about your money. I know you've got questions. I know you have things on your mind, and we'd love to hear from you. But I'm also joined in studio by a very special guest. I have Rachel Cruz in with me, best-selling author and an incredible blogger and host of The Rachel Cruz Show.

Hello there. Hello, Hogan. It's good to be with you. I know. Christy and I took over an hour yesterday. I heard. And we survived, Hogan. We did it.

Well, I knew you would. I'm kidding. I knew you guys would not only survive, but you would thrive. Yes, it was so fun. And now I get to be with you. I know it. And we're going to have fun. Yes, this is great.

So, America, if you're out there, I know you have questions. Rachel talks about money, lifestyle. I know you have things on your mind. Give us a call. We'd love to hear from you. That number to call is 888-825-5225. Or you can hit us up on social at Ramsey Show. So, we'd love to hear from you. That number to call is 888-825-5225 or you can hit us up on social at Ramsey Show.

So we'd love to hear from you. So we're going to the phones and we have Karen on the line. Karen, how are you? Hi, I'm good. How are you guys? Oh, we're doing fantastic. What question do you have for Rachel? Okay, so I'm 25 currently on phase step

two. I started with $39,000 in student loan debt, and I now have about $8,000 more to pay off. And I'm moving out on my own in the next couple of months. And I'm at the age where everyone is getting married. And I have three weddings to go to this year, and I'm a bridegroom in one of them. We were so excited about the wedding wedding and we didn't really talk about the expenses and the expenses are starting to pile up. I'm expecting to pay for the truck, assistance, operations, hotel, transportation, food and drinks for the Jack and Jill party, and for the bridal shower. So I'd just like to get some advice on how I should tackle the situation.

Yes, that's a great question. And Karen, it's so expensive, isn't it, this season? I feel like even if you're just attending a wedding, you know, you're like, oh, I have to buy a gift. I mean, there's just so much that goes into this. So my answer may be a little different for you compared to someone else considering you're on baby step two. And whenever you're getting out of debt, my philosophy always is the deeper you sacrifice your lifestyle, the faster you're going to get out of debt. And so what you have to do is kind of prioritize and say, okay, what can I do in this situation? You were asked to be a bridesmaid.

So I'm assuming a family member or a best friend. Yeah, best friend. Best friend. Okay. Yeah. So I mean, speaking as a woman, I'm like, I want you to be a part of that day, right? But I think that there are boundaries that you are going to have to set up. And I always say honesty is the best policy.

So, like, call the bride. She's your best friend. She probably knows you've been on this journey of getting out of debt. And just say, hey, listen, I can get the dress. And I can attend these showers. But me throwing in money for every single thing, it's just not going to be a possibility for me. So if you're

uncomfortable of me showing up and not being able to participate, I totally get that. Kind of ask her opinion on what's your expectations of me in this season considering I have these goals that I'm really, really, really trying to hit but I still want to be a part of the celebration. So maybe there are things you say yes to, like buying the dress or that kind of thing.

But then other things you may have to say no to and have that boundary. But there's ways to do it inexpensively, especially, hopefully, if she's understanding, if you guys have a great friendship and good communication and you lay it all out there and just say, hey, here's the reality. Here's what I'm dealing with. And just have that conversation. But it is tough. And some people are embarrassed by that.

Like even me just saying that. There could be people listening. They're like, oh gosh, Rachel. Listen, I would rather just like lay it out on the table and let the cards fall as they do than saying no and avoiding it and missing it or doing something that you're going to regret later and spending, you know, a thousand bucks

or whatever it is. And then you regret that. So on the front end, have that conversation. Karen, how long have you been friends with this person? How long have you been friends with this person who's having the wedding? Oh, since like elementary school. Okay. Great one.

Okay. Very good. Very long time. So all of the expenses that you rattled off to Rachel, how much do you think that's going to cost? It seems like the expenses are totaling to around $900,000. Okay. And right now with where you are, what debts do you have left that you're paying off? About $8,000.

Okay. What are the debts? It's just a student loan. Okay. You got a student loan. All right. And what's the payment on the student loan? The minimum payment is $500 a month.

All right. And you have how long before this wedding? July. Okay. This July long before this wedding? July. Okay. This July. It's coming up soon. Yeah. Okay. All right. Rachel, I agree. I think it's important, you know, to be able to prioritize. And you can't do everything. But this is tough. This is a childhood friend from elementary. Yeah.

Right? And so this is, it's not really an option for her not to go but i like what you said about participation level what you're able to do being honest about that yeah and and here's the thing too uh one of my good friends she's still single and she's a little bit younger than me so she's in that season like i went through the wedding summer season is what i called it it's like all the friends got married in this one summer and everyone's exhausted by it like do you know what i mean like whether you're a bridesmaid, even the bride, she's probably been a bridesmaid in four other different weddings. The whole process is exhausting, and so people know.

It's not going to be a shock to be like, hey, I don't have a ton to spend on this, so here's kind of what I'm doing. But man, what a mature decision to lay down that boundary because some people are just yes, and they just say yes, yes, yes, yes, yes. And then they look up a year later, and they're in all this credit card debt of being in all these weddings. So that is a piece of, you know, hopefully good advice that they're going to understand.

People are going to be empathetic to this, especially if you're in that season with all your friends getting married. Everyone's feeling the tension. Now, Rachel, here's the other side of it. This wedding was not a surprise. Okay. They didn't just decide, you know, within two weeks that they're going to have a wedding in July. And it's a lot like the holiday season, right? You got the invitation, you knew it was coming. And so I want us to take better steps in planning for some things, setting aside and sacrificing. And if you've got to take on an extra job or look to sell some stuff, you know,

it's that if you want this, then I need to do this. Yes. And you know what Winston and I did in our every dollar budget? We added a birthday, because now we're out of the wedding phase in our season life, and we're in the little kid birthday party phase. Like all the cousins, all the friends, and like our friends, like me and Winston's friends,

their kids are having birthday parties. So it's not even like our kids are friends. We're their friends being invited to these parties, right? So we started a line item, and the budget just says like birthday gifts and we've just kept it going because every month every month there seems to be a birthday and we don't spend a ton i go on amazon and just buy something like i was gonna ask you what's what's the average amount you're spending on a little gift 15 20 oh that's good yeah yeah but i like it in the budget because i like to know okay if it comes up okay yes here it is it's in the budget so I like to know, okay, if it comes up, okay, yes, here it is. It's in the budget.

So if you're in a season of weddings or you're in a season of, you know, graduation season's coming up this month in May. Like, if you're in that, just put it in the budget as well. Rachel, you just gave a reminder to all of America out there. Graduation. Graduation's coming. That means those invitations are going to start to come through. Now, that's more expensive than a kid's birthday gift. Yeah, it can.

It really is. And so, again, start to think about that and be aware. Start to plan for it. But it's okay to say no. You know, you can't expect to do everything everyone wants you to do. And it's really important. Now, Rachel, you are also, tell other people about ways to save money and being practical

with your Rachel Cruz show. Now, in your most recent episode, you give tips on saving money on everyday items. Let's talk about this in the next break. I want to know. Let me just say, Costco. I've got some Costco secrets for you people. Secrets?

Oh, it's not going to be secrets anymore. Oh, America. They're not secrets, but they're great tips. So stay tuned. When we come back, Rachel Cruz is going to give us some money-saving secrets and tips. You're listening to The Dave Ramsey Show.

Let me tell you a story about two families that are very much alike in a lot of ways. Both families have two working parents and a couple of young kids. Each has debt and a struggled to make ends meet, but they're starting to make headway with their budgets and smarter decisions with money. They have dreams and plans, and the only real difference is that one family has the right amount of term life insurance and the other doesn't. Big difference. If one of the parents die, and that does happen. Their well-being would be destroyed. Paying for the mortgage, utilities, food, and other bills would be impossible, let alone saving for education or retirement. That's why every day I talk relentlessly about getting term life insurance.

Just go to ZanderInsurance.com or call 800-356-4282 and see how inexpensive it really is. Be the family that takes those deliberate steps to be different and responsible. It really does make you the hero of your story, and it puts you on course for better things ahead. Hello, America. I'm Chris Hogan filling in for Dave Ramsey. You're listening to The Dave Ramsey Show. Before we went to the break, I'm joined here this hour with Rachel Cruz, bestselling author and host of The Rachel Cruz Show.

But Rachel mentioned that she had some secrets, some money-saving measures that she was going to save. Tell us about on how to save. So, Rachel, reveal these secrets. I know they're probably not secrets. Okay. Well, the latest episode was all about how to save money on everyday items. So, you can check out the Rachel Cruze Show Facebook, YouTube, or the podcast. So, this content's all on there, so you can check it out.

But we did a whole food segment, too, because grocery store, it's expensive. So, we were talking about one part is do you buy, like, generic, you know, or do you buy the name brand? Going through everything from medicine to food to all of it. Costco, we love Costco, their generic brand is Kirkland's. What's crazy is that they have licensing, whatever the deal is. I don't understand all the business stuff around it, but some of their items from Kirkland's are made in the exact same factories by the same, you know, products, everything of name brand.

So Kirkland's batteries are actually Duracell. They're made in the Duracell plant. Coffee, some of their coffee is Starbucks brewed, but it's Kirkland's, Starbucks. And then my favorite favorite which you'll appreciate shampoo the shampoo the kirkland's shampoo is the same okay this one wasn't an exact fact but the internet says it's true so i believe it is purology which you don't know the token purology is a very very very nice brand shampoo it's the branch it's the brand shampoo i use

and i know how much i pay for that dang shampoo. And it's made by the exact same, in the same company as Pureology. So anyways, it's fascinating, folks. So there is ways to save money. First of all, I don't appreciate that of all the things you rattled off, when you mentioned the shampoo, you looked at me. Another hair joke. Did you? Yeah, that was a backhanded hair joke. I have two bald men that sit next to me sometimes in the studio.

I don't appreciate it. I haven't seen Chris Oaking, so I get to make all the hair jokes I want. But listen, so blowing down, so you're telling me the generic stuff is the same quality as this name brand thing. Yes, especially some at Kirkland's. I can verify that. Not always. But even how pharmacists and doctors, they even recommend buying generic medicine versus name brand.

I mean, all of it. It's fascinating. So it's all on that episode of the show. Check it out. But there's ways to save, Hogan. That's what I love. All right, America. So you need to check out the Rachel Cruze Show.

She's got all kinds of tips. She's got how to stay fashionable on a budget, which she's going to help me with. This whole thing about generic versus name brand, ways to save money and eat healthy. She's got a new video that airs on facebook and youtube every other week and her podcast is available also on apple spotify and google podcasts every other week as well so definitely check that out uh rachel as we talk about this generic versus name brand i did have this thought there are a few things you can't go generic with yes i would agree with that okay what are a couple things you can't go generic with. Yes, I would agree with that. Okay, what are a couple things for you that you can't go generic with? I cannot do generic cereal.

Okay. I've got to go name brand cereal. Like Honey Nut Cheerios, it's Honey Nut Cheerios. If I get like Honey Oats or whatever, I can taste the difference. So cereal is the place I'll splurge. Okay, cereal. And what's another one? I would say, oh gosh, I'd say makeup as a lady.

Okay. Like I will invest in like nicer makeup versus. Okay, you lost me there. I know. I'm sorry. I'm sorry. You went in shape with makeup and now I'm gone. I got food for you.

What about you? What's yours? For me, okay, there's a couple things. Chocolate. Can't go generic chocolate. Oh, okay. So no like Publix brand, Kroger brand. No generic chocolate and no generic cheese. Oh, see, So no Publix brand, Kroger brand. No generic chocolate and no generic cheese.

Oh, see, I'm a generic cheeser. Nope. Can't do it. Can't do it. Taste matters, people. Taste matters. Hey, dairy's important. Bottom line is, is America, there are ways out there to save money, and we have to be

more intentional. And when we're intentional and we're aware, we can stay in control. Well, the average percentage is $30. I'm sorry, a 30% percentage between generic and name brands. Wow. So just by choosing that, you're saving 30% without having to cut something out, which is great.

It's another way to save money. I love that tip. All right, we're going back to the phones. Next up, I have Tori on the line. Tori, how are you? Hey, good. How are y'all doing? We're doing fantastic.

How can we help you today? Awesome. Okay, so I have, I'll try to make it simple. I have one full-time physical job, one salaried remote job, and then a side hustle. My salaried remote job has offered me to shoot them a number to see if I could just have the one job instead of two. And I'm a little afraid to do that because my physical job, you know, I get like a yearly bonus. They pay 70% of my insurance whenever I'm in baby step or, you know, they have a great retirement deal that they have. And the remote job doesn't have any benefits whatsoever.

So I kind of, I guess I wanted to see what y'all thought, if I should do that. And I will say it's tempting because right now, like I work, you know, of course, age five, like most people. I live 30-ish miles from where I work. So I'm missing a lot of times with my kids and I feel very overwhelmed and rushed almost on a daily basis between all of it I it's just it's getting to be too much and I don't know what to do okay so refresh me you have a full-time job you work eight to five and then you also have a remote job yeah so my remote job is salaried um but when i started my physical it's complicated i'm sorry when i started my physical job they knew that i had my

my side hustle and i had my remote job and they said that they were fine with me doing both here at the physical place um because they just need someone physically to be here in the event of, you know, something comes up. But I'm not really that busy here. And then, too, so my remote job knows that I'm doing it. So I'm not, like, cheating or scamming anybody. They all know that I'm working all these jobs and they're all okay with it. Okay, so the physical job wants you to focus on them 100%.

The other way. The remote job wants me to focus on them a hundred percent. Um, the other way, the remote job wants me to focus on them a hundred percent. Okay. Which one do you enjoy more? I'm just curious, Tori. I, I like, I mean, they both have pros and cons. The remote is, um, human resources. So a lot of people, but it's all by the phone. So I don't actually get interaction. And then my physical job is graphic design, which I went to school for art. I like to think I'm creative and artistic, so I enjoy

that one, but they both are kind of equal as far as pros and cons in my opinion as far as which one I enjoy and which one I could go without. And so tell me, what's your side hustle? Photography. Okay. Alright. And so really, you know, looking at this, hustle? Photography. Okay. All right. And so really, you know, looking at this, you've got a decision to make, right?

Yeah. Okay. And where are you leaning? If you had to make the decision before we hang up, what would you do? Oh, I'm going to cry just thinking. I really have no idea. I'm so torn. Right.

And my husband, you know, we were just, we don't know what to do. I mean, cause there's a chance I could shoot my remote job a number and they're gonna be like, we can't afford that and nothing will change. Um, but there's also the chance I shoot them that number that would compensate and match. So I'm not actually losing any wages and they're like, yeah, we can do that. Well, so what you need to do is that since your remote job doesn't have the benefits, once your remote job doesn't have the retirement, like you said, like the 401k matching, which is fine because there's other ways to do retirement, is you need to say, okay, here's the insurance.

Here's what all this is going to cost if I have to pay for it out of pocket. And then put that with the total amount for your remote job and say, hey, here, remote job, here's what I need to cover everything that's being covered now, and maybe a little bit of a bump to replace the salary of the full-time gig. And so I would say, look at that and look at the lifestyle changes too. The remote one, you said you can be at home, which I know you enjoy people, but maybe it's better for the kids, like in the season, depending on what age your kids are. It may be a huge blessing to be able to be home, to be able to do that. Or maybe you look up and say,

you know what, I would rather just do this full-time salary job, get the benefits, interact with the people. This is what I enjoy. But doing this over the long-term, Tori, it seems like a lot. And I just don't want you to get burned out.

So I think that you, you know, throwing out a high number for the remote job is worth it. The worst they can say is no, and then you guys can reevaluate. Rachel, I completely agree. And I love that her and her husband are having that conversation, talking it through, talking about the pros and cons.

And you don't want to think, too, that you're making a 30-year decision. All they can tell you is no, right? And it looks like with your side hustle, you've got time to be with people and interact and have fun, Tori. So yeah, let's sit down, get a number, tell them that, right? Don't think for them. Give them the opportunity to give you an answer. And guess what?

They might just surprise you. Who knows? But driving 30 miles each direction, well, that's some time. So you've got some opportunity in front of you. Sit down, give them a number, and be confident. This is The Dave Ramsey Show. Hello, America. You are listening to The Dave Ramsey Show. I'm Chris Hogan, filling in for Dave. And I'm joined in studio today with Miss Rachel Cruz, who is helping people all over the place save money with her show, The Rachel Cruz Show.

You definitely want to make sure that you check that out on YouTube. Rachel, you doing well? Thank you. Yes, this is fun, Hogan. We are having fun. I know. I like hosting with you. And you're behaving, and that's a good thing.

So we're going back to the phones, America. If you've got a question about money, I want to hear from you. Give us a call. That number to call is 888-825-5225. Again, that's 888-825-5225. We'd love to hear from you. All right, going to Minneapolis. We've got Ashley on the phone. Ashley, how are you? Good. How are you guys? We are doing fantastic. How can we help you? So I graduated in December from a university, and now I just got a temp position, temporary position at that same university, cleaning. And I'm making $15 an hour and about $900 a paycheck.

Okay. But my student loans are coming up that I have to pay back in June. And it's about $63,000, which is big stress. So I've been listening to Dave for like a couple of months now. And I'm on step step two, but since I can basically lose my job tomorrow if the guy comes back who is on medical leave, like, should I just skip to saving three to five months in advance, or should I just start paying off all my debts? Okay. And the only debt that I have is my student loans right now.

All right, $63,000 in student loans. What did you get a degree in? So, individualized studies with a focus on academic advising and a minor in women, gender, and sexuality studies. Okay. And so, you're working this temp job right now because someone is out? Yes, somebody is out because of a personal accident. Okay.

And when are they due back? I have no idea. HR will call me when they hear from him, but if they hear from him and say that the doctor says that he can work on Monday, I'm out of a job. Okay. Well, I mean, as I

hear you, the first and foremost, you need to have your resume dusted up, and you need to be in pursuit of your job, right? Are you making, you said $900, sorry. No, you're good. You said $900. Is that a month? Every two weeks. Every two weeks.

Okay. So you're right at $1,800 a month. And so to answer your question, Ashley, no, I don't want you to change the baby steps. You get that thousand dollars saved up and everything else, you know, you're saving and putting toward the student loan debt. And so don't don't adjust the steps. What we've got to do is adjust your actions. And as far as getting after your full time job, we don't want you, you know, beholden to this person coming back and then now you don't have income so you know be in pursuit i would communicate with the the hr department talk with

them about you know if they have positions available and something for you uh begin to get your resume out talk to the people you know inside of your circle of influence and you know for you full-time job becomes the thing that's on your mind. And it's important because otherwise you can feel vulnerable. Absolutely. And you're making $21,000 a year, Ashley. I want you making $40,000. You need to be making double.

You really do because the student loan is $63,000. And at this rate, even if the guy never came back to work, you can't keep this job and win financially over the long term you know to be able to get out of debt quickly because that's that's the gazelle intensity we talk about is getting out of that so you know what i would go get any job possible that's making more than this i mean anything you're like i'm 40 hours a week you know i'm i'm hustling i'm going i'm working extra I'm working above and beyond the 40-hour-a-week job you're getting. I mean, if I were you, I'd make it my part-time job to find a full-time job. That's right.

Because it's going to take you a long time, girl. And it's so unpredictable right now. Like, you don't want to be in this situation. So versus letting your destiny and your future be in this other person's hands, depending on when they come back, you need to secure yourself. Now, we're all vulnerable in our jobs right i mean like you never know what can happen but you're in an extra vulnerable position because you don't know so i mean i would be getting something and it may not be your dream job it may not be an academic advisory or whatever your your degree was but i'd be getting something girl and be making some money and paying the set off and the great thing is is you're still so young and you have time on your side so like but don't let

that slow you down see that as urgency that man if i can get myself out of debt in the next three years have a goal two years whatever it is that you're going to work hard pay off that debt uh and then continue on i mean there's people six years old listening to this, wishing that they had this information right after they graduated college. So you have so much potential, Ashley. It's so, so exciting. She really does. And I love she's got the desire to work.

You know, she's not sitting back. She's very aware. She knows when the student loans are going to become payable. You're on the ball. But yes, definitely get after it. Let the people you know that are inside your circle that you are looking for a job. And Rachel, you hit on something. It's not going to be the dream job.

No, but it's you need a job to have money coming in consistently. And I would probably even advise you to take on a second job and devote every dime of that extra job toward the student loan debt. And as you do that, you'll start to make progress. But Rachel, there's something else for these people that are graduating college and coming out and about to start life. I want to encourage them to slow down. You know, be careful. Don't go out looking at cars and come home with a car payment and then hurry up and go buy a home. Now you got a mortgage, a car and student loans. It creates stress. Oh, absolutely. And that life, that transition of lifestyle between college and the real world can be an exciting one

because maybe it is your first full-time job and you're like, I have benefits. And I have like, I'm an adult. It's so exciting. And you can get lost almost in that fantasy world. So, Hogan, you're exactly right. You need to buckle down, clean up the mess. That way, gosh, you could be 28 years old and you're funding retirement. You're cash flowing stuff.

I mean, it's just it's amazing the opportunity people have at any age, but especially you guys graduating college. Man, there's so much there. No, it is really important to start off and be intentional. You hit on that and understand about how money works and take your time. But start where you're working now. They know how you've performed and how you work. Let that HR person know that, hey, you're interested in a full-time job. And they've seen you.

They know you. So it can't hurt to ask, Ashley, to check with them and find out if there are other positions inside there that are available. But then also reach out to the college. You know, start to look and think a little bit different. But your friends are connected, people that know you, know your work ethic and how you're going to go about things. They would love to be able to help you find a job. We just have to allow them to. So get your resume, dust it off, email it to some people, let them know you're looking.

And you never know what can happen, what can come from that. All right, listen, Rachel, I have heard of all types of different days out there. Okay, I've heard that there's a National taco day even a national pizza day oh there's a national pizza day is that national sibling day was earlier this month or late april okay there's all these days isn't it there is but did you may or may not be a margarita day i'm just saying okay you would know about that uh but listen did you know that there's a national life insurance day yeah now listen it's one of those things that people don't think about, but Dave recently posted a compelling video on his Facebook and Instagram, and I dare you to watch it

and not cry. As you think about this, it's so important for us to make sure that we have protection for ourselves and our families. Here's the story of the video. Sandra is a young lady who had $80,000 in student loan debt. After listening to this show, she and her husband started working the plan, Rachel, to pay off debt. They got insurance, life insurance that we recommend. They soon found out they were pregnant, but shortly after their new baby was born, the husband suddenly died.

And as you can imagine, their life went from perfect to absolutely just devastated. I can't even imagine their feeling. But in the middle of grieving, the last thing you want to have to deal with is financial stress, figuring out how you're going to pay for bills. How are you going to take care of your family and do what's necessary? But here's the thing, because they got disciplined, they got themselves out of debt and they actually heard the advice and took the step. They were able to put themselves in a position to take care of the family. And it's so very important.

And, you know, everyone always thinks, Rachel, that's not going to happen to them. You know, they really do. And so it's so important for you to take care of your family. You know, show them you love them. And so I want to encourage you to go get an insurance checkup. Go to DaveRamsey.com slash checkup. Take our five-minute coverage checkup, and you can figure out what you need. If you need to add, if you need to adjust or tweak, it's right there. Love your family enough to take that step. Again, go to DaveRamsey.com slash checkup.

Life insurance is just that important, America. You're listening to The Dave Ramsey Show. Music show. Hello, America. You are listening to The Dave Ramsey Show. I'm Chris Hogan, filling in for Dave, and joined in studio with Rachel Cruz. And we're excited to be talking about your life and your money. So if you've got a question I want to hear from you, give us a call. The number to call is 888-825-5225. Again, that's 888-825-5225. And don't forget, you can also send us questions via social media.

The call sign is at Ramsey Show. All right, we're going back to the phone. We've got Megan on the line from Kansas City. Megan, how are you? Good. How are you guys? Oh, we're fantastic. How can we help you today? I have a question. We are on baby step four and we built a house in 2017,

so it'll be two years this August. And our house payment, this was kind of before I got crazy into the baby steps, but our house payment is probably 40 to 45% of our take-home pay. And I know that Dave suggests not moving or moving is like last resort, but the number, like I kind of been just running a lot of numbers and I don't know, they just don't sit well with me because right now we're only able to do like eight percent retirement due to the big house payment we have like no extra money okay all right megan let's talk about this house okay how much did it cost to build um well we kind of bought it when it was already started so we it just already had like a set price but it was like two um our loan was like for 241, and we owe 234 right now.

Okay, all right. And how much is your payment? Right now, we just got a tax assessment, so it's going to be going up, but right now it's 1625. 1625 is your mortgage payment. Okay, did you do a 15 or a 30 year? 30. Okay, all right.

We do have a good interest rate, though. What's your interest rate? 3.8 30. Okay. All right. And what's your, you have a good interest rate though. What's your interest rate? 3.875. Okay. And what's your household income? 65. Okay. All right.

And so your income was 65 when you all bought this home? Yes. Okay. And what's that? I said stupid. Well, it's called hindsight now, right? Because once you wrestle through and you start figuring it out, what happens is you become aware. Now, between you and your husband, who's most emotionally attached to this home?

Honestly, neither one of us we moved out here due to my husband's job so he's like within two minutes of a drive and previously he was about 30 so we moved out here to get closer to his work okay so you justified the overspending on the house because of its location pretty much yeah no that's the fact that's the reality yeah right and so now you look at this and you go okay at 40%, do you all have kids? We have three little boys. Okay, what are their ages? Eight, seven, and four. Okay, so you all are busy too.

And I work night shift, and so I go like 30-something hours without sleep every time I work. My goodness. And so 65 is the total household income? Yeah, I'm technically part-time. I work at a hospital on nights, but due to the kids and my husband works like six days a week, I can't really pick up anything else. And so that's what I was figuring in my head. I'm like, we both get about 3% annual raises. So even just sitting here, we might be able to get up to the 15% in the retirement, maybe like three or four years from now, but that we might be able to get up to the 15% in the retirement, maybe like three or four years from now, but that's not being able to start college funds, not being extra on the house.

How long have you guys been feeling the stress of this house? I mean, honestly, we can make the payment fine. It's just we don't have extra, like I'm thinking long-term kids' college. Oh, yeah. Wanting to have a house paid off in 10 to 15 years at the most and i just feel like in this house we can't do it but i know dave always says don't move last resort so i don't that's where i'm kind of yeah when he usually that that's the advice we give when the house payment is not out of control but megan i'll tell you just from the numbers this

house owns you guys like you're you're in, you're possibly even working a job to pay the house payments, considering you're part-time, right? I'm like, you're looking to say, oh my gosh, like what this is doing, what this is costing my family, the stress and the fact that you guys aren't even emotionally attached. As you were talking at first, honestly, I went to, oh man, they built the house. They probably picked out some of the finishes. They're invested in it and as a woman like or for me I'm like my house is like my oasis like it's the place where you raise your kids and you have memories there you know you I don't know I get emotionally attached to homes where you can't and so I thought that was me your problem when he asked who's more emotionally attached like kind of neither of us so girl I'd sell it I would get

your life back like if you guys can get if you can get a home yeah if you can get a payment 20 25 percent like go drastic we say 25 but even if you can get something even lower and maybe he commutes an extra 15 minutes but man you can breathe you can actually do your goals like you're talking about instead of eight percent retirement considering you guys aren't maybe step, you can bump up to 15%. You guys can save money and go on a trip as a family in the summer. I mean, like you get your life back. This house is, it's owning you guys.

And you can hear it in the voice. And we always try to rationalize things. Well, it's not that bad or we can make it work. No, it's should you, right? Should you allow this house to be the reason you're waking up and going to work with the kids that you have at eight, seven, and four? They don't care about where they are.

They care about their time with you guys, with mom and dad. So here's what I do. You and your husband sit down tonight, talk about this and talk about the option of putting this thing on the market. Reach out to an ELP, a real estate ELP. Go to DaveRamsey.com. Talk with them. Find out the comps.

How much is this home worth? You call your mortgage holder. Get to DaveRamsey.com. Talk with them. Find out the comps. How much is this home worth? Call your mortgage holder. Get a payoff on this thing. And really start to get a view of what this looks like. But again, I want them, Rachel, to be on the same page, husband and wife, as they make this decision. Because it's going to be a big decision. Well, I was hearing her. And if I'm reading you right, Megan, through the airwaves, you wanted permission.

Like, you're not fighting us. I mean, you're wanting a way out from the way you're even phrasing your questions, the way you're making your statements. So I hope we just gave you fly and be free, Megan. So, yes, that would be our advice, 100%. Because here's the thing. You can always go get another house. Let's say you do. You buy a new house, and you're like, oh, it's only 25%.

Man, we miss paying 40% of our income. You could probably go get another house and get another 40% of your income being put to a house payment. That's right. You won't go back, I promise. But that's the deal. So get your life back. Well, and just the sense of relief and the quality of life they're going to have. That's it.

Even if you still work. Even if you still choose to work, that's great. Okay, but here's the deal. What are their friends going to say? What are their friends? I mean, if they're putting this house on the market and friends have probably been over and they've loved it, right? As they're talking to friends, how do they explain this to friends and family?

That this is so not worth it. Like, we're not able to do stuff that we want to do. We have goals not only for retirement, but we have goals that we want to take a beach trip every year with the kids or whatever the things are that you could have freed up. It's your quality of life. And man, in America,

we get so sucked into, I'm not saying this is you, Megan, but just in general, our culture sucked into our stuff. Yes. Our houses, our cars, it's our lifestyle and it takes the life out of us and we let that

define us and it's like you know what what if you just like took everything and you're like i'm gonna go step down in my lifestyle what that does what that frees up in your life and some of you out there you're living paycheck to paycheck you're feeling the crunch and you're like hey i've i've i've done all the sacrifice you know but but those of you that can make choices to do things differently and put money towards getting out of debt, getting that freedom, I mean, all of it, it's, gosh, it's just so worth it. Well, as Rachel said, you get your life back and you're able to make decisions for yourself. And speaking of being aware and contentment, you've got a new book out, The Contentment Journal. Oh, yes.

Yes, yes, yes. I know. I'm really excited about it. It came out April april 2nd okay and it's a 90-day guided journal so every day there's a prompt so you know what you're writing it's not just a blank journal uh but contentment is huge it's a it's a heart issue but it's also a money issue i mean when you can get your heart in the right place it's funny how your money follows and people who are content they win financially faster than those who aren't.

I mean, they're able to sacrifice lifestyle. They're able to pay off debt faster, save money. They give. And so contentment not just affects your joy in your life, but it affects your financial life as well. So that is fantastic. Megan, we're going to actually send you one of these, Rachel's new contentment journal. Rachel, where can people find it?

Yes. RachelCruise.com or anywhere books are sold. Fantastic. All right, listen, you have an opportunity out there, America, to make some decisions about yourself, your life, and your money. And we're always a decision away, one step away from getting a little bit better, trying to do things a little bit differently and taking the time and being focused. Rachel, thank you for joining us.

Yes, thank you for having me, Chris. I also want to thank producer James Child and associate producer Kelly Daniel, and of course, and being focused. Rachel, thank you for joining us. Yes, thank you for having me, Chris. I also want to thank producer James Child and associate producer Kelly Daniel, and of course you, America. This is 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.