The Ramsey Show - App - I Have $134K in Student Loans (Hour 3)

Episode Date: July 31, 2023

Dave Ramsey & Ken Coleman answer your questions and discuss: EveryDollar, budget for the life you want today for free: Click Here "I have $134K in student loans," "Focus on paying off my car or saving for my wedding?" "Should I sell my house and move into a cheaper home?" Using car savings to pay off the house, "How do we get back on track with your plan?" Have a question for the show? Call 888-825-5225 Weekdays from 2-5pm ET Join a Personality-led FPU class. Click here! Want a plan for your money? Find out where to start: Click Here Listen to all The Ramsey Network podcasts: Click Here Interested in advertising on The Ramsey Show? Click Here 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 of Moving and Storage Studios, it's The Ramsey Show, where we help people build wealth, do work that they love, and create actual amazing relationships. Open phones at 888-825-5225. That's 888-825-5225. Ken Coleman, Ramsey personality, number one bestselling author of the book Paycheck to Purpose and host of The Ken Coleman Show, is my co-host.

The first caller up this hour is Elizabeth. Hi, Elizabeth, from New York City. How are you? Hi, Dave. Hi, Ken. How are you? Great. How can we help?

Yes, hi. So currently I have about $134,000 in student loan debt. I am a single mom and I've been following your shows since 2020 and it's a pleasure being on the show. We're honored to have you. What's your degree in? What's your degree in? Yes, for undergrad I did international business, and then for my master's program I did a dual master's in accounting and business analytics. And you did a dual master's in what, say again? Accounting and business analytics. Okay, so did you get your CPA? No, I did not.

Why? Because it's very time consuming and I did work in the field. However, just being in the field for about maybe four years, it wasn't my passion. So that's also why I didn't pursue it. So what do you do now? What do you make? In IT finance. Okay. So what do you do now? What do you make? In IT finance. Okay.

And what do you make? So I've been liking the IT finance. What do you make? No, what kind of money do you make? What do you get paid? Oh, yes. I get paid $115,000 annually. Okay. All right.

Interesting. Okay. Feels like you're pretty dramatically underpaid or underutilizing these degrees. Feels like someone with a master's degree in accounting and a sidebar in analytics ought to be making almost double what you're making in new york city why do you feel like you're doing that am i wrong probably yeah um you're right probably because I did switch industries, so that's a factor as well. Yeah. What were you making before?

I was making $95,000 a year ago. You switched industries and went up, so that theory doesn't hold. What does a promotional path look like for you? Have you determined what that looks like and how long it'll take to get there? Within the next five years, hopefully I'll get up to a manager position. Definitely long-term director, but it's looking a little difficult right now. How much of a bump would you get at that managerial level? I believe maybe $20,000.

Okay. And are you happy in this type of work now that you made this pivot? I'm happier than when I was in before, for sure. The work-life balance is a lot easier. Okay. And how many kids have you got? I'm sorry, what was that? How many children do you have?

One. What age? She's about to be nine. Okay. Do you have a support system around you to the level that you could be getting some side hustle work with all those awesome degrees you have? The gig economy, the freelance opportunities that you have to significantly increase your income are pretty sizable. But do you have the time or bandwidth to do that? Yes, I do.

You need to get busy with that. And you're not on a budget yet. Are you? Yes, so I've been pretty strict with myself. So since 2020, I paid off my car, which was about $25,000. And also, I paid off another $25,000 on student loans. So originally, I had $160,000, and also I paid off another $25,000 on student loans. So originally I had $160,000. Okay, and so you're making progress, and at that rate you'll be done in about three years.

Yes. And anything you can do to add to that income-wise is going to speed the rate at which you get out of debt. Way to go. You're a warrior. Get after it. Yes, but I've been losing a little bit of momentum because it has been a little difficult. Being a single mom and also being in New York City

and the rent is not that great in price. While you paid off $60,000, that was exactly the same situation? Mm-hmm. Nothing changed, except you're just getting tired. A little bit, yes. Yeah, okay. So are you from New York City? Yes, I grew up in New York Cityork city okay so your support system is there

your family's there yes my my family is here all right if you're gonna stay there this is the plan the only other plan would be to move someplace cheaper and make the same money obviously obviously you can live in a different place with much lower rent than new york city no kidding and there are other cost living facts including taxes and so forth you could save on as well and if you can make the same money it would be net net a raise right but you would lose the support system and you'd be moving away from your roots which you may not want to do but if you don't want to do it you got a two a two- to a three-year path ahead of you, and you're going to be tired. But you have a $134,000 hole to clean up, and you've already cleaned up $50,000.

I'm proud of you. I think you're doing better than you think you're doing. Thank you. I really appreciate that, Dave and Ken. It's been a tough battle since 2020, so I just have to keep the momentum. Listen, hang in there. I want to encourage you. You're a mama bear, and I would never bet against any single mom

who has done what you've already done, and you can see. It's out there, but you can see the end of it. Think about where you've come from nine years ago. Oh, my gosh. You're like a superhero. From where you were nine years ago to where you are now. Yeah. I mean, you've got a double.

You got a double masters. I mean, pretty incredible. You've got the skills to go do anything you want to do. I think you got skills to make more in your making. I agree. And especially in New York City. But I think you keep pushing on that. Keep working on your people skills

as well as your analytics and your accounting skills. And keep looking for opportunities and keep scratching and clawing. But I'm with Ken. I don't bet against someone who's already done what you've already done.

It's very, very impressive. Well played, well played. This is The Ramsey Show. Ken Coleman, Ramsey personality, is my co-host today. Samantha is with us in Myrtle Beach, South Carolina. Hi, Samantha. Welcome to The Ramsey Show. Hi, thank you so much for having me. Sure, what's up? Hi. So I am engaged and I have been for about two years. So we're trying to start planning our wedding and everything like that.

And that means that, you know, I need to have some money to throw towards it. Right. I really don't want to go into like a massive debt with this especially since i just paid off my credit card and my fiance doesn't have any debt at all uh so i really don't want to have a financial burden towards so what do you make a relationship i make around 38 oh god he's uh he's part-time He really doesn't make that much money. Why? He's in full-time school right now. Oh, okay. What's he studying? Yeah. He is studying computer programming. When does he graduate?

He graduates, actually, I think December or January. Oh. And how old are you two? Yeah. I'm about to be 22 and he is already 22. Okay. But I also have a, I have a car loan. It's around, I think I have like 8,800 left to pay on it. And then I also just started grad school. Um, so I really, uh, I just out student loans for the first time in my life,

and I thought I was going to throw up. How much? How much did you take out? So around each year, it's going to be around $9,000. What are you studying? And it's going to be a three-year program. I am studying child and adolescent school counseling. And when's the wedding?

No, wait a minute. Stop. You're going to spend $30,000 to get a degree in child and adolescent counseling? So you're going to go become a licensed therapist, right? Hopefully. Not hopefully. You better do it. You're betting on it. a licensed therapist, right? Hopefully. Not hopefully. You better do it. You're betting on it.

Right? I mean, you've got to do it. Right, absolutely. But you're not going to go be a school counselor for $24,000 a year. Are you? I hope not. I'm going to try my best to do the best that I can with my grad program. Dave, I would like her to press pause. Can you press pause on the grad program?

Or are you already committed, signed? What's the status? I just started this past month. But I've been out of my undergrad for like two years that has nothing to do with it what's the path are you going to be in the public school system is that where you're headed yes yeah that's just the rl it's not worth it it's not going to pay you enough to justify even if you paid cash for it you're spending a lot of money to not make any money. That's what we're trying to say.

Gotcha. Is that registering with you? Unfortunately. Yeah. Okay. Yeah, you need to rethink this, okay? I don't mind the degree field as long as you're going to go into private practice and earn $100,000 a year.

And even then, I wouldn't go into student loan debt to do it. I'd be working like a crazy person. Or I would wait until you're married and he is out making $100,000 a year, and you guys as a couple can pay for your grad work. So, yeah, I'm with Ken. I'm with Ken. I'm with Ken. I would push pause on this. You already paid the tuition for this quarter.

So I already started. Yeah. Okay. Well, how far in are you? Can you stop and get a refund yet? About classes started July 10th. You can probably still get a full refund. Yeah.

If you can get a full refund, take a refund and take a rest. You're not going to do this, but this is what we're telling you to do, and this is what we do for a living. So I would take a refund, repay the student loan, and take a rest until you're married, and then you can cash flow this same degree field if you still want to do it at that point. But you need something.

You need a better path than public school with this degree field to justify the expense of getting this degree. This grad degree. This is ill founded. I would not do it. Okay. You need to rethink this whole process and the timing of it. You definitely need to rethink. And that way you can afford at least afford to do it.

In the meantime, it doesn't cost hardly anything to get married. You guys go, both of you pile up a couple thousand bucks each and go have a little party and spend four or $5,000 and get married. If you're going to do that, that's fine. There's nothing wrong with that at all.

You do not need to spend a bunch of money on a wedding for the wedding to be real or for the wedding to be correct or anything else. And you guys don't have a bunch of money. He works part-time and you make 30 grand. And so, and if you're going to get married anytime soon, that's what we're doing. Um, yeah. And we're going to, you know, be aiming at him graduating in December. Uh, and then our household income, hopefully he's going to make some serious money. Our household income goes way up.

Then we can reconsider restarting a graduate program if you've got a way to justify the expense of it. And, Samantha, please hear me say, I heard it in your voice, you are not a failure by pausing or by getting a full refund and just delaying and maybe never going back. Major success. Please understand that. buzzing or by getting a full refund and just delaying and maybe never going back major success please understand that i could hear it all over you almost like i started so now i gotta finish no there's nothing it's not broccoli you don't have to do it you don't have to clean your plate it's start your marriage with as little stress as possible just press pause on this okay yeah and if i were you all i would go ahead and get married soon yep two years i mean painter get off the ladder that's a long engagement um so this this

is you know there's so much going on here oh my goodness yeah all right. Open phones at 888-825-5225. Terry's in Denver. Hi, Terry. Welcome to the Ramsey Show. What's up? I'm actually calling because I bought my house. It'll be two years in December. I put 85% down.

Wow. I sold some property in another house to buy it. Cool. But my problem is I only net about $4,200 a month. Last year I made $90,000, but my take-home is about $42,000 to $44,000, depending upon my overtime. And the house payment isn't the issue. Since the Marshall fire, which happened like a month after I closed on my house,

my insurance went up 175 a month that next year. So within six months, my payment had already gone up that much. And this year, my property taxes are going up 30%. I've crunched the numbers. And that means my house payment, if I did my calculations correctly, will go up another 100 per month for the property taxes. Well, that's going to put my house payment above 30%. I don't know exactly yet because it was about 27% when I bought, just a little bit above the 25%. So your take-home pay that we talk about is after only your taxes are removed. Okay.

And you've got more coming out than just taxes to get to $4,800 from $90,000. Right. What else more coming out than just taxes to get to 4,800 from 90,000. Right. What else is coming out? Well, I have a retirement. Yeah, that doesn't count. Okay. I don't know because I work for a city. Yeah, but that doesn't count.

That doesn't count in the formula that we use. Okay. Okay. So, you know, 90,000 would be maybe more like six thousand dollars a month coming up okay okay not not five thousand okay not not forty eight hundred so so you're fine you're okay okay and i called because i didn't know if I should sell this house and go down in-house or just keep my current one. Yeah. The trick is to not be house poor, meaning not have so much of your money going to house payment that you end up going in debt for the next car because you didn't save.

Or you end up, you know, with something not saving for retirement, which you are automatically out of your check before we even got to talk about it. And so all of that. So you're able to do the other things. You've got room in this budget to do it. So it's not killing you at this point. The trick is just not to be house poor. That's what the 25% take-home pay ratio is for. So I think you're fine, Terry.

Thanks for the call. Ken Coleman, Ramsey Personality, is my co-host today in the lobby of Ramsey Solutions. Brandon and Alicia are with us. Hey guys, how are you? Great, how are you? Better than we deserve. Where do you guys live? Lexington, Kentucky, just right outside in Mount Sterling. Cool, very good. Good for you guys. Hon Lexington, Kentucky, just right outside in Mount Sterling. Cool. Very good. Good for you guys. Honored to have you. How much debt have you paid off? 153,356.63. Excellent. How long did this take? About three years. Good for you. And your range of income during that time? Somewhere around 120 to 135 $135. Cool. What do you all do for a living? I am a staff accountant for a very large insurance company. I teach.

Awesome. What do you teach? This year it'll be kindergarten. Wow, that's fun. No, that's fun. She starts her new job in the morning. Oh, wow. So we've got to get back.

Oh, wow. We've got to get you back to Lexington. Okay. Well, let's get this over with quick. Good job, guys. What kind of debt was the $3 two cars and our house wow your house and everything i'm looking at weird people yeah way to go guys what's the house worth probably right now about 245 excellent and how much is in your retirement nest egg our total

um net worth right now is about 384 000 way to go guys how old are you two i'll be 41 uh at the end of august and i just turned 36 all right so by the time you're 50 you're gonna be millionaires hope so way to go guys way to go i'm so proud of y'all good work good work all right what started this uh episode this journey three years ago a lot of resentment actually a lot of honesty right so i was on staff at a church as a worship pastor at the time and our best friends uh jared and bethany childers walked into my office and said we're going to be teaching fpu and i said well great good luck and uh they said no no you pay off your debt and i said well we didn't have any debt i was thinking credit cards

student loans we were blessed to never have any of that just two cars and a house and they said no you're going to be in it and uh so reluctantly we signed up for it and you got voluntold absolutely that's what it was all right yeah i like it so you got got into the class and then all of a sudden you went uh-oh yeah some stuff has to change right luckily for the cars we actually had the cash almost all of it sitting in savings oh wow i'd just rather paid eight hundred dollars a month car payment than to wipe it out and pay the cars off so so you did wipe it out and pay the cars off. So you did wipe it out and pay the cars off.

Baby step two literally took about 30 days. Okay. Okay. Wow. Good for you guys. And then baby step three and then tear into the house, huh? Yeah. Yes.

So how much of the 153 was cars? 29,000. Okay. All right. So still 120,000 bucks to plow through. Yeah. Yeah. But you don't have a house payment, man. You whacked that's so cool we've been enjoying this since about april our

goal was to have it done by the first of july and when we scheduled our debt free scream in february i looked at her and said we've got to do it we've just got to get it done so by april we had it paid off and we've enjoyed a few months of no house payment. Yeah, the first time the month comes around and you don't have a house payment, it's weird, isn't it? It is. What do you do? Yeah, it's like surreal. Yeah, it's like, I'm supposed to give these people all my money, and now I don't have to.

Yeah. Yeah, it's so cool. You really do believe the borrower is slave to the lender at that point. Absolutely. And when you're free, you know you're a slave. Sometimes when you're a slave, you don't know you're a slave slave sometimes when you're a slave you don't know you're a slave but when you're free you know back then you were a slave i remember going back and looking through our text messages from then and she said oh well what if we don't have any debt i said well technically i'm still trying to convince myself that we did so well technically we have two cars in a house but

that's not real debt and now that it's gone you realize that wow good for you guys so fun so what do you tell people the key to getting out of debt is learn to say no i'm a big people pleaser and so it was really hard for me to learn to tell my friends and family especially no to stay home and have staycations instead of vacations and they you know ao used to say your why has to make you cry um they've all three of our kids over here are adopted and their family trees have already burnt to the ground once and i want to make sure that didn't happen again wow oh i got chills yeah it's pretty heavy so when you guys got on the other side of the car loans what was the momentum like for that discipline to say no was it a little bit easier

having knocked out those two things i mean was it still very difficult it was hard because like he said the car loans we already pretty much had the money The biggest thing is we gave up a cruise. And for me, it was hard not to give the kids more, to realize that they don't have to have this, that they need this, but not that. They already hit the jackpot when they got you guys. We did it. They hit the lottery when they got you to start with. Oh, my gosh. We're blessed.

We're blessed. Wow. So what were those hard sacrifices like like beyond just saying no to the kids asking for stuff what are the some of the other things that you guys did give up a cruise give up a cruise which was paid for and that that kind of helped finish baby step two was we got our money back right and uh which did not make one of these children over here very happy. And so that would have made me happy. So that finished it, finished it off for us. But thankfully, this was all during the COVID shutdown. We started baby step paying the house off in May of 2020.

So we couldn't go nowhere, do nothing really anyway. So gotcha. All right. We just threw everything at the house. We did. Yeah, we did yeah we did and through all that process dave i guess i owe you some payroll uh financial coach i went through the training they're all over here and some people from fpus here and uh i'm thankful for their

support through all this so you became one of the ramsey coaches absolutely oh wow absolutely wow so that that church has always got somebody now. Yeah. Yeah. Excellent. Very cool, man. Great job. All right, coach. When people ask how you get out of debt, what do you tell them? You have to start getting on the same page together. It's not going to work if one person's in, one person's out, one says, yeah, sure, do whatever you want to. It all has to start with we're going to come to agreement that we're going to do this. We can figure out the numbers later. We've got to get you together first.

When he says it, it sounds so much nicer than what I'm saying. He does, Dave. He has a different bedside manner, I think. It's the East Kentucky accent. It is. It really is. No, I think you're just a pleasant guy. And, Ken, your stuff through all this helped.

The teaching debacle in the state of Kentucky basically says you teach for a year. We pink slip you. You have to go find a new job. So the proximity principle for three years really helped when she was faced with the news that your contract's not renewed next year. That's awesome. So we're thankful for your – Proud of you guys. Good you guys.

I'm proud of you. You're amazing. Well done. $153,000 paid off. All right, bring the kiddos up. Let's introduce some names and ages. This is Amber. She's 11.

Brayden is 10. And Kaysen is 9. All right. Or 6. 6. Okay. Very good. Very cool. All right, 6. Okay, very good. Very cool.

All right, well, you guys have done a great job. Hey, we've got the Live and Give box for you, the Baby Steps Millionaires book, because that's the track you're on. We've already figured that out. That's good. And the Total Money Makeover book for you to give away to a coaching client, probably, and a Financial Peace University membership for you to give away to somebody so you get to live some of it, give some of it.

And thanks for coming all the way to Nashville. And enjoy your first day of school tomorrow. I will. Well done. Well done. All right, Brandon and Alicia, $153,000 house and everything in three years. We're making $120,000 to $135,000

deciding to do it. Count it down. Let's hear a debt-free scream. Here we go. Three, two, let's hear a debt-free scream here we go three two one i love it for those of you looking deeply into your radio the kids t-shirts say i survived fpu that's about as fun as it gets it says barely though underneath barely so i survived fpu barely that's awesome mom and dad canceled a cruise and changed our lives houses paid off that's great you don't have a house payment what happens if you don't have a house payment oh you become unbelievably wealthy. This is The Ramsey Show.

Our scripture of the day, Deuteronomy 8, 18. But remember the Lord your God, for it is he who gives you the ability to produce wealth, and so confirms his covenant, which he swore to your ancestors as it is today. So here's what's interesting. Let's just keep this a minute. Remember the Lord your God, for it is he who gives you the ability to produce wealth. That's in the Bible. So those of you that say that that's not okay from a Christian perspective haven't read the Bible.

Albert Schweitzer says success is not the key to happiness. Happiness is the key to success. If you love what you're doing, you will be successful. Rita is in Atlanta. Hi, rita welcome to the ramsey show hey dave hey what's up not much hey i'm just calling hearing that debt-free screen made me um it's kind of gears toward my phone call i just want to see get your advice and opinion to see if what we're doing if we're doing things, or if we need to focus on, um, one thing.

So my husband and I are debt free except for our mortgage. And we're actually only down to about 33,000 on our house. And, um, we have our 401k. He actually was just advised to fund it to 10%. So do we keep doing that? And we also have,

um, a car fund that we have a substantial amount in there. Do we pay towards the mortgage and get that all paid off and then start? Okay, so you have an emergency fund of three to six months of expenses that's separate from all of this. Correct. And you're debt-free but the house. Right. So that would put you in baby steps four five and six baby step four is putting 15 of your income towards retirement

it said i thought you said 10 are you doing 15 somewhere else so uh yeah we have an ira that has more money than that, but this is just through his company where his company matches up to 60%. Okay, so have you got 15% of your income going towards retirement in some form? Yes. Okay, then that's baby step four. Baby step six is pay off the house. You only owe $33,000, and you also would save and pay cash for your next car.

So if you have a pile of cash sitting there that's earmarked for the car, that's fine. Or if you decide you want to change the name of that fund from car fund to I want to pay off my house fund, I'm okay with that too. How much is in that fund? The car fund, we have about $15,000. Okay. And what's your household income? A little over $100,000.

And what's your worst car that you're replacing? A 2005, but it only has 100,000 miles on it. It's a Dodge Cannon pickup truck. So it's got a lot of life. My husband works from home. Yeah, it has some life, and I drive a 2010 minivan with about 170,000 miles. Okay, so choosing between paying off the house or throwing the 15 at the house and having 18 left or upgrading cars, there's not a wrong choice here by our steps.

It's a matter of preference. Then you've got to decide what you want. I got to tell you, just looking at it, if I'm in your shoes, it's going to be real hard for me to not reach over and try to knock that house out. Yeah, that's what my husband and I, we were tempted to go up. Because we've had some issues with the van. We were tempted to go upgrade the van. But then when we got our payoff amount, we thought, oh, my goodness, we're so close.

And actually, we have closer to the six month maybe even a little more in our emergency fund so you could dial that down a little even yeah and throw some more at it yeah and then be done you could be done with it and then upgrade the van with no house payment later right I mean it's not that you never upgrade the van

it's just that we're going to pay off the house first rather than buy the van first right okay I mean you could do either one. I'm not, you know, I'm just, I'm thinking with you is all I'm doing. I'm not telling you because according to the guidelines that we have, you're going to be fine either way because five years from today, you're going to have an upgraded car and a paid for house regardless of which direction you go. Okay.

Because you're in control. You're being very intentional. You're careful.'re in control. You're being very intentional. You're careful. You're thoughtful. You're talking about it together. You have all the symptoms of somebody who's going to win. Yes. Okay.

Gotcha. So your stupid column is not in this discussion. Right. Right. Good job. Really good. Yeah. Really incredible.

Incredible. And I like how you said there's no right or wrong here and i want people to hear that because i'm sitting there listening to that i'm going there's options again it's real options when you've got a car that's you know 170 000 miles on it's been a pain in the butt for them recently sounds like but to your point if they dial that emergency fund back to three months plus what they've got, they may knock that out completely. Then all of a sudden, they're replacing that car in three months. Boom, boom, boom, boom, boom.

I like that. Options. Erica is in California. Hi, Erica. What's up? Hi, Ken. Hi, Dave. How are you guys doing?

Great. How can we help? Great. Okay. I need help figuring out where I'm at and what I should be doing. We are technically on baby steps. Well, I take that back. I guess we've got $5,000 in credit card debt, which we need to pay off first. That is through my husband's business. So I'm not exactly sure how to tackle that because I don't handle those finances. But our house is paid off. We don't have any outstanding debt aside from my husband's business, $5,000 credit card bill. But he recently ended his partnership for his company. And now his income is significantly reduced, and so we're spending more than we're making,

and I'm not exactly sure what to do moving forward in the next few months ahead. Sounds like he needs a job. Well, he's got one. He's entrepreneurial in nature, and he's been building up his own manufacturing engineering company, which it looks like it's going to be doing well. We're just not making as much as we used to currently. Then you need to not spend as much as you used to. You've got to get your income up or your outgo down you're not in congress right right things are necessary expenses like child care for example we're spending thirty four hundred dollars for two kids as it is so he's not making any money well well he he's together our household income

right now is a hundred thousand he thinks you can't live on a hundred thousand dollars yeah and you have no debt no house payment yeah right well as i that's that's what i'm that's what i'm trying to figure out yeah it's all of our necessary expenses no there you don't have a hundred thousand dollars of necessary expenses with no house payment and no car payment and no student loan payment. You don't have that. It's not there. One of these numbers is wrong. Okay.

I mean, seriously, that's $8,000 a month. I agree with you. We've sort of fallen off the wagon with not being able to track our expenses. You're not on a budget. You're not on a budget. You need to get on every dollar. I'll put you in every dollar premium if that'll help you. That'll hook you up to your bank, and you can run your budget,

and you and your husband need to sit down and run your budget. I kind of think the way you've covered for him twice or three times in this conversation that he's really not making any money yet but you're pretty sure he's going to you have a lot of faith in him and that's good i like that but i don't think he's making any money today is he you know the problem is david he's telling me that just hold on at the end of the year we'll be able to make this distribution it'll cover everything no it won't cover everything because you got to pay daycare this month daycare doesn't do until the end of the year so he's not making you don't make a hundred thousand dollars yet well that's he's taking out he's taking out an income he's taking out an

income he's giving himself a salary so currently our salary is a hundred thousand dollars but again i'm finding it it's it's leaving and i i just i'm having trouble between child care and all okay i'm having trouble understanding is this guy's really making a hundred thousand where the crappies get why you okay if he's really pulling a hundred thousand dollars out of his company and you really have eight thousand dollars or seventy five hundred bucks hitting the bottom line over there and you guys can't live on that with no debt y'all got other issues. And so hang on. I'll get you signed up for every dollar.

Get the two of you to sit down. You both need to understand where this is going on. This promise with the distribution at the end of the year is bull crap, okay, if you can't make your monthly bills and you got no debt. So hang on. We'll get you signed up. 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. Dave here. You can find all of our shows with the Ramsey Network app on your smartphone. It's the only place to listen to the entire back catalog of episodes. Download the Ramsey Network app in your favorite app store today.