The Ramsey Show - App - How & Why Married Couples Should Combine Finances (Hour 3)

Episode Date: February 1, 2023

Dave Ramsey & Rachel Cruze answer your questions and discuss:   "How can I teach my son about money when his biological father is terrible with money?"  from the blog: 15 Ways to Teach Kids About Money, How a married couple should combine their money, "Should I do a cash-out refi?" from the blog: Cash-Out Refinance: How It Works and Is It Worth It? Do I need to set up a non-profit? Have a question for the show? Call 888-825-5225 Weekdays from 2-5pm ET Want a plan for your money? Find out where to start: https://bit.ly/3nInETX Listen to all The Ramsey Network podcasts: https://bit.ly/3GxiXm6 Learn more about your ad choices. https://www.megaphone.fm/adchoices Ramsey Solutions Privacy Policy

Live from the headquarters of Ramsey Solutions, broadcasting from the pods moving in storage studios, it's The Ramsey Show, where we help people build wealth, do work that they love, and create actual amazing relationships. Rachel Cruz, Ramsey personality, number one best-selling author. My daughter is my co-host today. The phone number here is 888-825-5225. Kennedy is with us in Indianapolis to start off this particular hour.

Hi, Kennedy, how are you? Hi, Dave, how are you? Better than we deserve. What's up? Hey, so I was calling because I have a son. He's four and a half. And his dad and I are no longer together, but I'm in a great marriage now. And we are actually on baby step two. We're working with Beth.

And my son's dad, he's not very good with money. You know, we built a house together. I wasn't on it, obviously. But we built a house together, and he picked out everything that was super expensive. He went and he bought a brand new Jeep when he had kind of a beater. He lives to, like, impress people. And he's not a bad dad. We're on good terms.

But he's just really bad with money. And I'm trying to work with my son now on chores and saving money and making money. And I'm worried that his dad is going to show him habits, like going out to eat all the time and buying every single thing and it's just kind of going to reverse what I do here at home can you help with that yeah I mean this is this can be a tough one the good news is though Kennedy I mean your son's five which is great right I mean they're young and yes impressionable but but you can start doing things with him um that's not going to completely unravel just because he sees his dad. And I think parents, and I have to even realize this even with my kids, so much of what they learn

is what they're watching. And so more is caught than taught. And you only have the power to control what goes on in your house. You don't have the power to control what's going to be going on in your husband's house. And so I think the older he gets, the more conversations you guys can have around money. But right now, where you're at, the fact that he's five, I think instilling these small habits. And again, Kennedy, we have a five-year-old at home. We do this stuff. I teach it every day. And we still probably aren't as intentional as we should be with our kids, right?

So there's a lot of grace in this. It's okay. They're still young. But I think, you know, slowly but surely that consistency over time of what he's going to see from you, that's what you can control. And so that's what I would focus my energy on. And again, I'm sure as he gets older, there's going to be more questions. And I think you have those conversations with respect for his dad and still honoring him, but also telling the truth of, hey, here's what common sense looks like when it comes to money.

Here's how to, here are habits to have to set you up to win, right? Because I think it was Meg Meeker that said, we don't raise kids just to be good kids. We raise them to be good adults. And so I love Meg Meeker. Yes. Kind of having that long-term mindset is helpful too. Now Meg would tell you first and foremost, never trash his dad to him. Absolutely not.

Under any circumstances. That's never ever going to happen. But then sometimes the way I can find my answer on some of these things is if I take it to an extreme, it tells me how to handle it. Let's take a different thing instead of money. Let's just make up something kind of weird or wild to see how we would handle that let's say his dad drops the f-bomb every other word he does actually that's who knew and um and we don't do that at our house okay we don't okay so how do we handle that well

we don't trash dad and we can't control what dad does with his mouth over at the other place but we can only control it when you're with me and in this house we don't speak that way we have more class than that we're not trash okay uh you know we have we have a sense of decorum we have a sense of nobility in our home and we don't we don't speak using those types of words uh they're called vulgar we don't teach a four-year-old that but i mean this is what's going through your mind right and so you go well i can't control that but all i can control is what we do here and and so your interaction with him is we don't do that when you're here okay and you know we don't do that here and so

we don't when we're here we work and we do our chores when we're here we're generous with our money when we're here we save our money when we're here we make wise purchase decisions with our money as coached by our mom i and then that's all you can do now what will happen at the end of the story is this okay common sense and love and proper truth does win out in these things but it takes time so when he's 26 and he did something stupid with money he's gonna know what stupid looks like because it was described to him by you and so he's gonna go gosh i really can't model my life after my dad my mom's plot process works i need to gravitate back to that and i'm gonna probably go to my mom yeah and if i need if i need help if i need financial advice i don't go to my dad who's

broke i'm gonna go to my mom who taught me this stuff the whole time growing up. But he'll go through the phase like all kids do where first you're, you know, somewhere around 14 years old, my mama's stupid gland kicks in, right? And then it takes until about 30 or 25 or whatever for it to grow back, right? And then suddenly at some point in their 20s or whatever you're a genius again and you're going to go through that regardless of whether you're together or whether you're apart so uh uh you know that's going to happen here it's not going to be a perfect path and there's not anything you can do to protect him from uh bad money habits or

vulgar mouths when they exist with your ex because Because the truth is too, Kennedy, you know, you could, you could have been in a marriage raising him and doing everything possible to teach a new eyes with money. And then at the end of the day, when they go off on their own, suddenly they're adults that have to make their own decisions too. And you know, we're getting even that second generation of Ramseyites. So that kids that grew up listening to Dave on the show, make very sure you talk about what you and your current husband are doing to the four-year-old

in age-appropriate ways so they see the model. And you coach him on his personal behavior so he sees the model, and then it'll work out. It's going to be okay. But there's no ironclad protection when he's going to get exposed to the virus on the other side. Okay. It's just like the mouth thing. It's the same thing.

And so you just got a bad model over there. And that's, you know, but you can't fix your ex-husband. That's why he's your ex. And you can't control him. That's why he's your ex. But even with't control him that's why you're he's your ex but even with parents too what i was saying earlier was you know even if you do and about any any area of parenting right you there's no guarantee yeah right so all you can do is give it your best shot that's right so that's what i would say too kennedy is like give yourself some

grace yeah do what you can in your household and then at the end of the day launching them into the world it's like, okay. If you model it more as caught than taught and you teach it, you've done all you can do. That's your best shot. And it works out more times than not. So that's why we do it. That's why we do it. Hang on.

We're going to send you a copy of Smart Money, Smart Kids that Rachel and I did together, teaching your children how to be smart with money so that when they grow up, they have a brain. And what's hard in those situations is like the disney dad thing too when they go to dad's when they go to mom's house that's the spender and it's like oh we're gonna have all this fun and to a kid it's like oh this is way more fun and that's a hard pill to swallow too when you're the parent i'm the only grown up in this equation i know yeah it's hard you're doing great kennedy yeah Yeah. Yeah, it's going to work out. Hang on. Austin's going to pick up.

We'll send you a copy of Smart Money, Smart Kids. It was the first number one bestseller Rachel had, and the only book I've ever done with her that was a number one, because it's the only book we ever did together. So, this is The Ramsey Show. Субтитры сделал DimaTorzok thank you for joining us america hey tickets are going fast for our Building Wealth live tour. We have four more stops on the live events. 3,000 to 8,000 of you are going to be at each of one of these. Thank you. You don't want to miss these.

They're going to be a blast. If you're doing this stuff, it's kind of like a big pep rally to come around all the Ramsey people doing this stuff. It's a lot of fun. And we're going to talk about how to build wealth in the middle of all this craziness going on in 2023. February 16th, just a couple of weeks, Rachel Cruz, George Campbell, Jade Warshaw, and I will be in Indianapolis. A few tickets left to Indy. It's not quite sold out. I'm a little surprised by February 16th.

It'll be there, though. We're just around the corner. The next week, we'll be in Austin, Texas. Again, a few tickets left. Ken Coleman, Dr. John Deloney, Jade Warshaw, and me. And April 24th, Rachel Cruz and I and George Campbell and Christina Ellis will be in Salt Lake City. I'll be along with Ken Coleman, Dr. John Deloney, and Christina Ellis on the final stop of the tour in Anaheim on May 2nd. Tickets are $49.

You can get a four-pack and bring your friends for only $175. You pay more than $175 to go to a concert of almost any kind, and this will actually give you the information to change your life. Now, concerts are fun. This will be fun, but you also will come away motivated and going, oh, man, all this junk I'm hearing on the news, I think I can win anyway ramsey solutions.com slash events get your tickets right now the building wealth live tour indianapolis austin salt lake city anaheim looking forward to seeing you guys come on out now the phone again ramsey solutions.com slash events all All right, let's go to Julie in St. Paul, Minnesota.

Hi, Julie. Welcome to the Ramsey Show. Hi. Thanks for taking my call. Sure. I've had recently, my husband and I have had some changes with work, and what I'm trying to figure out is how to make monthly contributions that we both make to a joint household account, equitable and fair.

He's recently accepted a new job making considerably more money, and I'm straight commission, so my money is always variable. It'd be different if, you know, we had, he made $100,000, I made $50,000, then it's pretty easy how to figure out. But how do you figure something out when somebody's variable commission every month? How long have you guys been married? We've been married about three years. We've been together about eight

and sharing finances for about six. Okay. Well, my answer is really simple, Julie. It's all of yours together. So once it hits a bank account that you guys share, regardless of who brings in the money, it is your money. You guys together as a couple, it is both of your money. Both of your monies, all of your monies together.

You're acting like you're still roommates. You're not roommates. You're husband and wife. And so the preacher said, and now you are one he did not pronounce you a joint venture there is okay there is power and power in combining finances combining checking accounts working out of the same pot regardless of who brings in the money that together you're a team and and even studies recently, there's been like two or three recently coming out talking about even the satisfaction,

the marriage satisfaction and joy is higher with couples that see themselves as one when it comes to money. And it's probably one of the more counter-cultural things. I feel like we talk a lot about counter-cultural stuff on this show. But for so many people, they do what you guys do. They're running these kind of these two separate lanes trying to figure out okay who pays what bill what's fair what's equal when you just scrap all of that and say hey this is our house

when our incomes come in it is our income what are we going to do with our money and you see yourself as a team as one as unified and and my, I'm like, if you can share a bed, you can share a bank account. You guys are married. You are one. You are together. Now, in your budget, you have a line item that's a Julie line item and you have money to go and spend and enjoy. And that's great. You know, I have a Rachel line item and I can go buy us sweaters and new pair of jeans. And I'm not having to text him every time, right? We have a certain amount of money that I get to spend every month,

a certain amount of money he spends. So there's still a level of, yeah, you still have money to spend, but that's agreed upon, that amount together. And so something changes, Julie, I'm telling you. You both have power. Not just tactically things change when you combine accounts,

but emotionally, the unity that's created you start to see yourselves as one and you win faster financially when you do that you work together you communicate there's so there's so many pros i'm telling you so many pros that come out so much data to back this up by the way of working together it's it it sounds devastatingly old-fashioned though doesn't it a little bit yeah when you've been very independent for the majority of your life. Yes, yes. It's different. Wanting to contribute equally, too, you know, but that always sometimes not getting accepted.

But the problem is when you're doing it your way, it almost feels like if you're not putting in more, your vote doesn't count as much. And it does. You have equal votes in the marriage and equal votes on whether we buy a house equal votes on whatever's if you don't believe me visit divorce court they'll give both of you an equal vote right the law says that exactly the law says that so here's an interesting extreme okay my wife sharon left the workplace uh of her own choice when my oldest daughter, Rachel's older sister, was born. And Denise is, what, 30-something years old, right?

So for 30-something years, Sharon has not had an income. And yet Sharon has a great income because we have a great income. We own a house. Now, we do at our house still say that's your car because it's the one she drives more than me and it's the one with the dent from hitting the garage door but oh i said that out loud but yeah that's your car this is my car but they're our cars it's our vacation it's our retirement it's our money and we are going to design a life we want to live together we both have a vote she has the same vote i have and she brings nothing of income

to the equation i didn't say she brought nothing to the equation she brought nothing of income to the equation let's be very very clear about that after the garage door joke but um i'm already in deep kimchi here but the uh but that that's the uh uh that's the thing so yeah i i think um i i think that uh uh i think you can try this as an experiment because there's nothing that says you can't undo our suggestion. Try it for six months, Julie. Between now and summer, combine accounts. And change your language when you do. Our. Not yours and mine. Our.

Our. Our. And see if you don't notice some subtle shifts with that communication in your relationship it's it's proven and it's just we've been doing this a long time and we rachel's right we get trashed on social media for this because it's like it's so it's it's like old-fashioned see the old marriage vows you know uh for richer for poorer we've all heard that in sickness and in health we've all heard that. In sickness and in health, we've all heard that. The old Book of Common Prayer marriage vows say, Unto thee all my worldly goods I pledge. You don't hear that in a marriage anymore either.

No. But 50 years ago, almost every wedding you went to, you would have heard that. Okay. And or 60 years ago. I've been married 40, and it wasn't in mine. But yeah, I mean, it's old school is what I'm saying. It's got a very, almost a Victorian feel to it. And what can come with that is the sense that you've lost power

and we're not suggesting that your vote is diminished. No. I'll guarantee, dad blame to you, my hillbilly wife has a vote okay she takes her vote you can call you a hillbilly can you call her a hillbilly she's hillbilly too we're both noble noble hillbillies but uh but i mean the chances of me taking away your mother's vote is zero right even if i wanted to be overbearing it's not an option okay yeah that no 100 100 and i will say this one of the pushbacks i get on social media is well we just kept fighting all the time and now we have separate accounts and we don't fight anymore

that's because you're just denial that's okay so that's my point is i'm like that's the exact fight you need to be having to have a deep rich marriage like you can't just sweep things under the rug and function like two different you know know, two different places and then call that okay. That's not okay. You broke up and didn't admit it. It forces you to communicate and work together as a team. And I'm telling you, Julie, it's worth it. It changes other things in your marriage. Give it a shot.

That's our pitch. Give it a shot. This is the Ramsey Show. Thank you. rachel cruz ramsey personality is my co-host. Open phones at 888-825-5225. You jump in. We'll talk about your life and your money. Some of you are new to this. We've got literally millions of you joining us in the last couple of months. Thank you.

We're so glad you're here, and we want the opportunity to love you and opportunity to help you. And sometimes you get in here and you hear information that's new to you it's a new way of thinking and uh for some folks in our culture today that that's not a challenge because they're looking for new information and looking for a new way of looking at things other times it's a challenge for you because you get all disturbed and you think it becomes your job then to uh get us to change um you got confused about how this relationship works okay because this is called the ramsey show this is what this this is who we are and what we teach if you want to do a show go do a show okay but get some hate at the break no i just i always get hate i've gotten hate for 30 years you're gonna get a hate after that last no i just i always get hate i've gotten hate for 30 years

you're gonna get a hate after that last call like you you always get hated let me bring this whole thing up you get trashed on this stuff and uh but that the whole point is let me help you with this for 30 years every letter that has come to ramsey to me has been answered except junk mail and hate mail. There's no reason to answer hate mail and there's no reason to answer idiots in the comment section of YouTube. Okay. There's no reason because let me just tell you, did you think we were going to change because of you little troll?

You got confused how this works. We're not going to change because we're right. So that's why you came here in the first place, because you wanted new information, because the information you were using sucked, and so did your life. And so we're here to help you with that. It's what we do. and so but don't get confused about this stuff it's it's just hilarious to me that i was just reading but there are things you learn in life i learned i learned on the air something yesterday okay i would love to hear and so i don't mind learning but but I didn't learn it from a troll.

Sure. Okay. And I didn't learn it from an activist. Oh, give me a break. Get a job. So I was just thinking about how much crap you're going to catch. Oh, it's fine. I'm fine.

You actually see it, but I don't even see it because I don't even look. If you read comments after an article, you understand why some species kill their young. I mean, it's just the ignorance that abounds out there is unbelievable. So the interesting thing about this, you know, the last 25 or 30 years we've all grown up uh some of you have grown up with and i've adapted as an old fart to walking around with this magic wand in my hand and so i can push a button and stuff shows up on my front porch i'm magic and so i must matter i've got great power no you really don't do you think that's where it comes from? Oh, I guarantee you. We gave people agency beyond their ability to control it.

We gave them autonomy beyond their ability to control it, and thus they become trolls because they got confused and thought someone cared what they thought. Listen, you live in your mother's basement. I don't care what you think. I'm sorry. You haven't earned the right to speak into this yet okay so that's that just to go ahead and help you guys that are

new how this stuff works well you're arrogant no i'm just confident there's a difference arrogance is unfounded okay we've been doing this 30 freaking years and the prince yes and it works and the principles work and they're they're biblically based common sense when things used to not be so nutty out there and this agency and autonomy we've given to people who have to have an opinion and to speak in to raise raise hell with people when they haven't earned the right to do it is not good for our culture. It's damaging our culture because then people are actually being swayed by crazy people, the mob. And so it's hard to cancel us. We own this, and we're not going to stop so if you don't like it

your only option is leave because we don't even care if you bitch it doesn't bother us so just kind of helping you guys set out how this works so i think i just got there so often we have to reset the equation here man you dropped the b word dave so i mean it's it's okay life's good life's good it is and listen it's fine see i it's so fun i'm like this is just different personalities if if there are people that totally disagree and they think we're nuts i'm like that's great i don't that's fine you can think we're nuts. Ah, just go somewhere else. I mean, why are you wasting your breath? That's my point. Move along, little doggie.

Yeah, so there we go. We can handle the loss in ratings, I promise you. Open phones at 888-825-5225. Jason's with us in Kansas City. Hi, Jason. How are you? I'm doing great. Yourself?

Better than I deserve, man. What's up? Have you ever trolled someone, Jason, on are you? I'm doing great. Yourself? Better than I deserve, man. What's up? Have you ever trolled someone, Jason, on the internet? Dave needs to know right now, Jason. I have never trolled anybody. I have not. I'm just kidding. Other than, I mean, trolling is when you don't own it.

But I've given smart aleck answers back when Twitter used to work, back before it deteriorated into a cesspool. But anyway. Sorry, Jason. We brought you in. Jason, you deteriorated into a cesspool. But anyway. Sorry, Jason. We brought you in. Jason, you walked right into the bandsaw. How can we help, man? I did, apparently.

So it may be an easy answer for you. So I was wanting to refinance my home for against some equity to pay off some bills and expenses that I have and maybe also do a little bit of renovating in my home and not sure as far as if it would be the best case scenario to do that or to eliminate some bills and that would eliminate most of what I have and then I just have a little bit of a higher mortgage payment yeah Yeah. The problem with that process is that we've not seen it to work because you didn't really eliminate the bills. You just moved them.

Yeah, I kind of visualized that. And when it comes to renovating your home, you just borrowed money to go renovate your home. So we want to lead you, if we can, out of debt, not into debt, and out of debt so that you can have money to invest, so that you can be wealthy and outrageously generous and have an awesome life. That's where we want to lead you. So based on that, we're going to work the debt snowball on the bills

and then save up and pay cash for the renovations. How expensive a renovation do you want to do? Really, I just want to do the kitchen which i'm going to do personally myself so i'm not paying someone to do it not going to be a lot of money how much debt do you have jason um in total maybe about 15 000 okay how much do you make a year uh a little over 50 okay yeah so I would just pay off that 15 and then get a good emergency fund. Do you have any savings? I do.

I have about $3,000. About $3,000. Okay. Yeah. So I would take two of that, throw it at the 15, keep working that, get a great emergency fund of three to six months of expenses. And then at that point, if you want to start some retirement, saving on the side for the remodel of the house, I think that's great. Because here's a big problem, Jason, that we find. And this is if people do something like this,

or even if they get a big inheritance or like a big end of the year bonus, and they have a pile of money that they're going to throw and pay off debt, what we have found is personal finance is 80% behavior. It's only 20% head knowledge. So it's almost like you're putting a Band-Aid on your past money habits just to clear it. And again, just like Dave said, you're reshuffling it. You still have that debt. It just goes into the house instead. And there's something about you, Jason, that is transformed when you work the process and you pay this debt off, you save the cash and you do it. And in that process, that's when your habits start to change in your outlook versus just moving debt out of the house, throwing it, fixing that problem over here, the $15,000, you know, doing it all. So working the actual plan is where you're going to see long-term

results, not just with your money, but with you. Hey man, we'll help you. We want you to go through Financial Peace University as our guest. I'll pay for it, okay? Hang on, we'll have Austin pick up and we'll get you in the class. You and your wife go through that class and this will make more sense to you. Because if you just snap your fingers and the debt goes away and you don't change your habits, the debt grows back. That's Rachel's point. And that's what we don't want to see you have happen here so hang on we'll walk with you and show you how to do this Our scripture of the day, 1 Corinthians 3, 12 and 13. If anyone builds on the foundation with gold, silver, costly stones, wood, hay, or straw, each one's work will become obvious.

The day will disclose it because it will be revealed by fire. The fire will test the quality of each one's work. Alex Honnold said, no matter the risks we take, we always consider the end to be too soon. Even though in life, more than anything else, the quality should be more important than the quantity. JT is with us in Tupelo, Mississippi. Hi, JT.

Welcome to the Ramsey Show. Hey, Mr. Dave. How are you and Ms. Rachel? Better than we deserve, sir. How can we help? Yes, so my wife and I, we are actually in the process of a new chapter in our lives. Several years ago, we went in and throughout Mexico and Brazil doing mission work and spreading the gospel of Jesus Christ into the streets. And we fell in love with helping people. It was something that absolutely changed and shaped our lives in the biggest way possible. And God really put it on our hearts to do this permanently.

So upon arriving back to the United States, we set out and pretty much turned a school bus into a home. And so we're going to be taking this bus in and throughout Latin and South America. And our goal or really our mindset is to be doing this very long term, possibly 10 years, even 20. I don't really know. But previously, the way we did it was we would just raise money, quit our jobs, leave, do all these things in the streets, and then come back, find new jobs, and then repeat the process. But doing it this way, we're not really going to do that. We want to permanently be there. And so my question is, in regards to this, we're looking at somewhere around $40,000 more or less a year, and that's not a lot, a lot,

but I think it's more than enough that we will need to do it. And we're trying to figure out which direction to take for the amount of, for the support that's coming in as far as like churches and individuals and businesses that are giving to us to support this mission. Um, how do I do that? Like, is this something I need to do through nonprofit because it's just my wife and I and, uh, my one child. Uh, so it's not like a big corporation or a you know nothing big really but i don't really know how to do it as far as the taxes and stuff goes and at the same time i want the people that are

supporting us to have as much benefit as possible as well you know in regards to tax write-offs and stuff like that all right well love your heart brother very cool you're good you're a good man and so it is a fairly simple process but it's going to take a little bit of time and a little bit of expense. You set up a 501c3 nonprofit, and that nonprofit then becomes tax deductible for anyone that donates to it. You'll establish an IRS number, and that will be associated, given to each of your donors, that they then take the tax write-off. A non-profit does not mean that no money's coming in. It doesn't mean that not enough money is coming in. It is a simple accounting entry that shows that the owner of the business is not taking the money home as excess profit. It's all it is.

Okay, so my point being this, a nonprofit has to physically be profitable or you go home, meaning you have to bring in more than you take out. If you need $40,000 and you bring in $30,000, you're a nonprofit, but you're going out of business, right? Right. So nonprofits have to be, from a cash standpoint, actually profitable. So you have to bring in more than goes out. But it's an accounting entry with the IRS that shows that the profits are being used for the benefit of the ministry, which includes feeding you and your wife. And it's not $400,000 a year of income for the two of you. Uh, although

that's technically okay, uh, it would be suspicious to your donors. Uh, but, but it's 40 000 and um and you know just as a practical uh thing ramsey family foundation we've got friends that do some of the things that you do and they are some of the people that we donate to from time to time and as a donor from the donor's side uh we love seeing that the money's helping people and so just some simple uh iphone videos sent back occasionally and a little bit of a report on the finances showing that um uh you know you're you're living on 40,000 a year which even in latin america is certainly not a living high on the hog right so uh you know we see where the money's going we see that the people are being helped, the results of our donation, because we see our donations as investments into those people on the street

that you're trying to help, and you're the vehicle by which they get there. That's how a donor thinks. Okay. And if you can keep that donor relationship real clear and have the IRS, and it's a separate bank account separate from your personal checking and then you are allowed by the charter of the non-profit to live out of that to pay personal expenses out of that because this is a ministry it's a mission you're missionaries okay and that'll be so in regards to like spending money um let's say uh because we're we're trying to be really realistic as well with

um i guess allowing time for ourselves uh so for example let's say we went to a local carnival uh a couple days out of the month or something to just have like a family day for us to keep it you're not required you're allowed to live a reasonable life out of this it's not it's not a violation of law or it won't lose your tax status or something like that where people get into trouble is more of a pr thing than a legal thing when some uh when some non-profit starts buying a private jet that's when people go huh you know that kind of stuff and you're going to the car was hardly on that thing is but that's when people go huh you know that kind of stuff and you're going to the car was hardly on that thing is but that's more of a pr than a legal it's not

technically illegal to buy a private jet with a non-profit it's nothing wrong with it uh but but it blows the donor base up and it blows the pr up right so um and we've all read those stories you know so uh in a non-profit settings because people like me we don't want to donate to your private jet we want to donate to those people on the street that you're helping and if you take your family to the carnival in the process we're not going to be angry about that okay i see so in regards to us doing those types of activities that's completely normal and you would move you say yeah money you would move money from the nonprofit into your personal account as your personal income. Missionaries all do that because missionaries all have to eat and have electricity and gas in the bus.

Right. The nonprofit. And then at the end of the year, what do I do as far as taxes go in regards to keeping up with how much I move from that account into ours? Nothing or? Nothing. You're a missionary. You're living on donations. Oh, okay.

I understand. Double check with your tax person, and they can help you walk through all of this. Matter of fact, if you hit the tax pros on RamseySolutions.com, one of those in your area will probably be able to guide you through forming the nonprofit. It's really not that difficult. It just takes a little bit of time. It's not considered income if he takes that. Shouldn't be.

I mean, he's living on donations. Yeah. But, you know, again, double check that because I'm wrong half the time on this stuff. So tax stuff I'm horrible at. But I do know the part about the nonprofit because we formed the Ramsey Family Foundation. We've got our own that we use as a methodology for our family's generosity and philanthropy. And so we have a 501c3 that does not take donations from the outside world. We fund it ourselves. And then that's how we handle the distribution

of our giving is through that and your sister denise is the director of that again so we kind of got into all of that uh in detail even though we're not on the mission field now we don't i don't draw an income from that foundation and i'm furnished the income to the foundation so quite the opposite so but that that's what you got to get into and just learn about it. But it's really not really that tough. It's not complete rocket science where you can't get your arms around it. You'll be able to figure it out and do it. Hey, man, we love you.

Appreciate what you're doing. That puts this hour of the 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 Rachel Cruz. If you love the show and want a deeper dive on your money journey, we have a weekly newsletter that gives you trending and helpful articles and tips on following the Ramsey way.

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