The Ramsey Show - App - I Was Hired Less Than a Year Ago...Should I Still Switch Jobs? (Hour 1)

Episode Date: May 20, 2021

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Music Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studios, it's The Ramsey Show, where debt is dumb, cash is king, and the paid-off home mortgage has taken the place of the BMW as the status symbol of choice. I'm Dave Ramsey, your host, flying solo today here on The Ramsey Show.

We're here to help you with your life and your money. Open phones at 888-825-5225. That's 888-825-5225. Before I jump in with the callers, I want to put a call out. The third hour, we're going to spend the entire hour talking about one of the scummiest most horrible industries in america today they rip people off they mistreat their customers like no other timeshares there's 60 people in the lobby watching my show right now, and when I said that, all of them nodded.

Because we all know. And yet, you still go to their presentation to get a free night at the beach. That's like going into the tiger cage after the tiger hasn't eaten for three weeks because there's nothing greedier than a timeshare salesman. You go into the tiger cage and you have to pet the tiger for two hours and not get eaten in order to get a free pass at the zoo. Here's an idea. Avoid the zoo, avoid the tiger. Neither one of these are going to be good for you

if this is the only way you can get to go to the zoo. Or just pay the bill to go to the zoo avoid the tiger neither one of these are going to be good for you if this is the only way you can get to go to the zoo or just pay the bill to go to the zoo that's called buying a freaking hotel room instead of getting yourself ripped off after you had a six-hour presentation where they would not let you out of the tiger cage until you got screwed see now i'm about to do the whole show this segment and i'm not supposed to do that. Anyway, if you've been ripped off by timeshares, you have an inside information on timeshares, which is like everybody in America, apparently. It's a multi-billion dollar business, and they have officially pissed me off now.

They have officially pissed me off. And so we're going to go to war, Mikey. Hope you're ready, Bubba. That's the president of Diamond. His name's Mikey. His actual name is Mike. to war, Mikey. Hope you're ready, Bubba. That's the president of Diamond. His name's Mikey. His actual name's Mike. I call him Mikey. We've been having a little discussion on Twitter about what a freaking crook he is.

And so these guys have got to stop this. And you people have to put them out of business by quit working with them. So we're going to do a little discussion about the timeshare business until they go to their knees because i'm going to turn 22 million of you people loose on them because they have been screwing people long enough and getting away with it because of their financial muscle and they try

to squash anybody and they've been coming at me and that was a dadgum mistake was a dadgum mistake bought and paid for crap so here we go boys and girls if you have a thing call in and uh the phone number is 888-825-5225 or email us at dave on air at ramsey solutions.com and you can be part of this third hour and we're gonna have a party a timeshare screw you party that's what we're having it's time for them to quit screwing you people and we're gonna bring it up and talk about it in detail it is unbelievable how scummy this business is and how nasty bad the executives in these companies are their personal lives oh my god filth trash and nastiness you ought to be ashamed of yourselves the way you

people behave and it's no wonder because it shows up in your product that you have no character that's how it works so game on boys here we go open phones at 888-825-5225 that's 888-825-5225 bud's going to start us off this hour in Boston. Hey, Bud, how are you? I'm better than I deserve, I hope. Dave, I'm really hoping that you can help me out with a situation that is actually making me physically ill. Oh, my goodness. I want to preface this by saying that I absolutely adore my family.

And I'm trying to do my best by my dad, but my brother and I get along best when there's a state line between us. My wife and I have a small lake house that's been in our family since the 1960s. We've been renting it out for the last several years, but it doesn't generate enough income to offset the mortgage and expenses, but it's been better than just having it sit there unused. How did it end up that you own it if it's been in the family? My grandparents bought it in 1962 when the first grandchild was born.

My parents bought it from them when my grandfather passed away. My parents were going to put it out on the open market and i was trying to keep it in the family so my wife and i bought it from them okay um we've been talking over the last couple of years about selling it and unfortunately circumstances changed a little bit last year in that my father who built the cabin that's on the property passed away last august and i'm now finding myself under increasing pressure from my mother and my brother to sell it to him for substantially less than market value. And they want me to allow him to lease to own it, both of which to my detriment due to capital gains and not being able to get out of the mortgage. My mom is struggling with letting it go, even though it hasn't belonged to

her directly since 2005, and she doesn't use it. I need to get out of the mortgage because I promised my dad I would take care of her. And not owing that debt, I can assist my mom financially for the remainder of her life. COVID took away her small job. She's living on Social Security. Dad's illness cracked, and she's 78. And your brother doesn't have any money obviously he's broke my brother is a spendthrift he has a he lives in a mobile home he has a fifth wheel camper that he owes on

and he does not need a lake house okay no and he is also retired on so what's making you physically ill is is that these people who have absolutely no rights to this property whatsoever are trying to dictate to you what you do with this property, and everything that they dictate to you is against good wisdom for them or for you. Because were your brother to buy this, he can't afford it. It would not be a blessing to him. Right. And if he leases it from you and he doesn't pay the lease payments, now we know we've got a future problem.

Duh. Right. So really, you already know what you have to do, but it's just the broken, it's just that everybody's going to be pissed off when you do it. Yes, and that's it. No matter what I do, I lose because I don't want to alienate my mother for the last few years of her life. If I don't put it on the open market and get fair market value for it, my wife will be unhappy with me. And no matter what I do. No, no, no, no.

Okay. The first thing we've got to do is the principle is what is the best thing to do with this property for your brother? What is the best thing to do with this property for your mother? What is the best thing to do with this property for your mother? What is the best thing to do with this property for your wife? What is the best thing to do with this property for you? The answer is the same to all of those questions. Whether they get it or not, I'm not trying to please your wife. I'm not trying to please your

mother. I'm trying to say, on principle, I want to do the right thing. Because the best thing for your mom is for you to get in financial conditions so you can help her. The best thing for your brother is for him not to continue to over-obligate himself. The best thing for you is to get out of this thing. Dude, you've got to sell this. Now, is somebody going to be pissed off? Probably. I don't think we're going to be able to stop that from happening.

But that's not up to you. That's up to them. You don't need to be nasty or mean. You just say, gosh, I'm so sorry. Honey, if I sold you this thing, you wouldn't be able to pay the payments and it would not be a blessing to you. I know it breaks your heart when it leaves. It breaks my heart when it leaves. Mama, I'm so sorry. I can't take your other son who's an enabler and as codependent as he can be and take care of him. I can't do it. And you know, this is what's best for everyone involved.

I'm going to be the grown-up in the room. And then if you guys want to have a little temper fit in the corner, you don't have to. One of the questions I get all the time is, which life insurance company should I use for my term life policy? A valid question since there are hundreds of companies out there with rates all over the place and riders and add-ons that are simply a waste of money. You need to get this done and make the right decision. That's why the only company I use and have recommended for over 20 years is Zander Insurance. Zander is a broker who shops the top term life companies for you

and finds the best rates available from the only plans I recommend. They also save you time. Whether you want to work online, over the phone, or via text, their team will cater to your needs and help you make the right decision. This is an absolute necessity, and Zander has made the process easy and convenient. Call them at 800-356-4282 or visit zander.com for instant online quotes. Thank you for joining us america open phones at 888-825-5225 well we just came back from dallas our entree leadership summit event was off the chain george w bush was a stand-up comic he was absolutely so fun so smart so compassionate

and so i mean funny funny he doesn't he's painting now if you didn't know and we're talking when he came off and i told him i said mr president that painting stuff doesn't work out i think you can do the stand-up comedy that was funny and so he kept the audience in stitches. He's a lot of fun. It was a great event. We had some world-class speakers and teachers on business. The Entree Leadership Summit is for small business owners and leaders, and you come and learn how to lead your business, run your business better. It was incredible.

I'm exhausted. It was three 16-hour days, back to back to back to back to back, everything in the world. We were running and gunning. I did sessions on two days and a small one to close the event out. And it was just so emotionally draining because it was so good. You know, when you're laughing really hard, you're crying occasionally, and you're jacked up and pumped up, it just takes it out of you. So, hey, we're doing it again.

We're going to be in Orlando next year, May 22nd through the 25th. We've now launched Entree Summit for sale. We put it on sale when we were there in Dallas last week. And it is not quite sold out yet. We almost sold it out while we were in Dallas. But there will be about 3,000 of us in Orlando May 22nd through the 25th of 2022. Pat Lencioni will be back with us speaking. Dr. Henry Cloud, Jade Simmons, who's a classic concert pianist and wonderful speaker.

My friend Will Gaderra. I always say his name wrong. He's my friend, but I do say his name wrong. He started and ran for years the number one restaurant in the world very interesting story jay leno will be with us uh jamie kern lima who started it cosmetics and one of the youngest female billionaires sold it uh and uh cashed out dr john deloney will be speaking christy right will be speaking ken coleman will be speaking if you're a business owner or a senior leader and you want to be in the room, you'll learn more and get connected to more Entree leaders than you can possibly imagine.

The energy in the room was incredible. It will be incredible. It was the first time most of these folks have been in a group of people again. And so they were all acting like they were teenagers who snuck out the window at night and like the adults were going to come in and stop us from doing it or something. It was so fun. We had a blast. So if you're interested in the few tickets that are remaining, just text SUMMIT to 44222.

SUMMIT to 44222. This will be an off-the-chain event. Our question of the day comes from Blinds.com, a wonderful company I'm so proud to endorse and have for many years. Find out for yourself why they are the number one online retailer of custom window coverings. And it's not just because Dave Ramsey endorses them. It's because they do a great job. You get free samples, free shipping, and with the new promos they run every time time you can save more. Always use the promo code. It's magic. Ramsey. Today's question is from Tracy in Alabama. I have a rental property for which I'm currently holding a mortgage.

I've been debating on refinancing. You're not holding a mortgage. You owe a mortgage. Okay. I've been debating on refinancing so I can get rid of PMI. That's good. I've read about a cash out refinance, and it seems there are some benefits that go along with that. Is that a good idea? Well, Tracy, this is the Dave Ramsey show where we talk about getting out of debt, not into more debt, because that is the shortest path between where you are and wealth. Cash out means you're going to borrow more than you currently owe you're going the wrong direction miss tracy and so uh no uh you you need to refinance it and get rid of the pmi or maybe you need to sell it if you need some cash maybe you're too broke to be a landlord that's a possibility too real estate is only a blessing when it makes money well i rent it for 750 and my payment is 650 you are losing money darling i know it sounds like a hundred dollars

profit but it's not in the real world when you count vacancy and credit loss meaning they don't pay when they're supposed to oh and by the way that 3500 heat and air went out and you make 1200 a year it takes you three years to recoup that. You're not making money on $100 cash flow. You're losing money. This is a liability. It is not an asset. Your real estate is not a blessing.

It's a curse. Sell it, if that's you. If you've got a really nice, big, fat cash flow, then get the stinking thing paid off and quit asking me about borrowing more on it and going further in debt. That's going the wrong direction, kiddo. Don't do that. Sarah's with us in Boston. Hi, Sarah.

Welcome to the Ramsey Show. What's up? Hi, Dave. Thanks for having me. It's a pleasure to be on the show today. I'm honored to speak with you, ma'am. How can I help? Yes, so a little bit about myself.

I'm 27 years old. I do have a degree. I did have the luxury of my parents paying for that degree, and I don't have any debt. Awesome. So definitely a blessing, yes. I also have about $60,000 saved in my savings account. Good for you. Um, thank you. And I have a very good job, a very stable job. So, um, my question for you is I have actually not invested any of my money. So it's just kind of sitting in my bank account. Um, that's including like anything for retirement. Uh, so pretty much no investment whatsoever. Um, so my question for you, I guess I have two. So how do you suggest I start investing my money?

Would it be with a portion of what I've already saved within that $60,000 range? Or do you think I should start investing 15% of all future, I guess, paychecks? Because I know from your baby steps, 15% is what you recommend. Yes, ma'am. What do you make? So I make about $100,000 a year. Good for you. Well done.

What do you do for a living? I work in software sales. Good for you. Oh, you've got a great future and a great career. Yeah, you're rocking it, kiddo. Excellent. Okay, so what I am going to do is just go back to those baby steps. Of that $60,000, we need to set aside three to six months of expenses

in a separate account for your emergency fund. I'm going to pick a number and just call that $20,000 just for discussion purposes. You can decide what it is later, okay? Okay. But that's over there just for when it rains, and kiddo, it will rain someday. Okay? Oh, I know it will. Yeah, so we're going to set that aside.

Say pandemic. Yeah, it can happen. I mean, things can happen. So we're going to set aside an emergency fund. Now I've got $40,000, and then we answer your question with that. Okay? We move on to baby step four, which is 15% of your income going into retirement, which is $15,000 a year, and you're making $100,000 at 27.

If you only do that the rest of your life and never get a raise which would make you a loser if you never get a raise in your whole life you'd be a loser would you agree with that yeah okay so yeah so if you only invest 15 000 a year in good growth stock mutual funds in your 401k with a match or without a match in a roth ira or roth 401, you will have tens of millions of dollars when you get to 65. Okay, that's what you're saying. Yeah. So you're set if you just play through and don't screw this up and marry some guy who doesn't want to work or something, you know, that kind of stuff, right?

So you got this going on. I'm so proud of you. You're doing so good. Now, once we said that, then that leaves us $40,000. Do we need that to become wealthy? No, we just established that we don't, and so I'm going to said that then that leaves us 40 grand do we need that to become wealthy no we just established that we don't and so i'm going to use that as your down payment on your first home even if you're not ready to buy a home right now we'll just keep piling it on there above the 15 and we call that baby step 3b where we're saving for a house which you've already done it

so uh whenever you get ready to buy a house you'll have 40 or however much more you add to that not counting the fact that you're putting $15,000 aside. Because you're very frugal. You make a lot of money, but you're very frugal and careful with your money. You've done a great job. You are your parent's child. They did a great job saving money so you don't have debt. Yes, exactly.

That was my next question to see if it would be smart to put the rest of that money into real estate. Now, I think it would be wonderful for your first property that you live in and a 15-year fixed rate on the mortgage where the payment's no more than a fourth of your take-home pay. And there's no hurry. You could do that next year. You could do that in two years. You're 27. You've got time.

You can do this. Don't panic. You've got time. You can do this. Don't panic. Everybody gets house fever, and house fever causes your brain to quit working. And then you buy something you shouldn't buy, and you pay what you shouldn't pay, and then you call me up later and go, I can't believe I did that. Well, just don't get house fever. If you get house fever, take a long cold shower. It'll wash it off.

Just calm down. This is the Ramsey Solutions, on the debt-free stage, Laura is with us. Hey, Laura, how are you? I'm good. How are you, Dave? Better than I deserve. Welcome. Where do you live? I am from Wyandotte, Michigan. All right. And that is near Detroit. Yep.

Perfect. Cool. Well, good to have you. Thank you. It's great to be here. How much debt have you paid off? I paid off $115,400. Way to go. And how long did this take you? 33 months. Wow. And your range of income during that time? I started at $72,000 and last year I made $86,000.

Cool. What do you do for a living? I'm a physical therapist. Ah, PT. PT. You're doing good for a PT out of the gate because you must have just started. I did just start a few, about three years ago. So I'm guessing this is PT school. It is.

It's all student loans. Every bit student loans. Every bit. And you docked off 30 grand a year for three years. Over 30 grand. Almost 40. Wow. Good for you.

I mean, you've been living on nothing. Yep. Absolutely. You can ask any family or friends. I just showed up. Yep. I showed up. That's it. All you've done is work. Yep, absolutely. You can ask any family or friends. I just showed up. Yep, I showed up. That's it. All you've done is work. Yep, pretty much. Yeah. Was it worth it? Absolutely. How do you feel now that you're free? It truly is a freedom. I think I didn't expect it that as soon as I paid off my debt, I thought to myself, you know, it wasn't that bad. And then I

thought, what are you talking about? This took 33 months of basically just doing everything I had to do just to pay it off. Yeah. Wow. So it's been awesome. You've been hitting it. I mean, you've been hitting it $3,000 to $4,000 a month. Is it steady like that, or did you have some big chunks or anything happen? It was pretty steady, but there was a time in my story of when I paid off a good,

about $8,000 from my emergency fund. So that was pretty helpful. But apart from that, just grind. How long you been out of school? I've been out of school since December of 2017. About three years. So you started almost immediately. Yeah, I started in March of 2018.

Okay. What prompted you to do this? Because most of your fellow graduates are still languishing deeply in debt. Right. Absolutely. They say that their student loans are like, I hope Biden helps me instead of me helping me. Absolutely. I have conversations like that all the time. But in March of 2018 was when I got my first job and I knew that I wanted to pay off my debt. So I was just kind of throwing money at it, but I didn't really have a set plan. And that year, December, I also got another job in a hospital just working as a physical therapist. So I was still just throwing money at it, throwing money at it, but didn't really have a set plan.

And then in June of 2019, my mom had said, you know what? I really think you need to listen to Dave Ramsey. He has a lot of what you have to say. I love your mom. Yeah, she's great. She's here. So she had just really encouraged me, you know, you need to listen to him.

You need to listen to him. He's got some good principles. So I said, okay, I will. I Googled you. I listened to a podcast, then another podcast, then another podcast. I bought the Total Money Makeover audio book,

and I listened to that. And now you have an addiction. No, it's really bad. I talk all the time, like, who wants to talk about budgets? So I had an every dollar budget app that I started using. And then I finally had said, okay, how long will this actually take me? And I had a set timeline. So then it was a matter of, okay, it was supposed

to be March of 2021. And so I was aiming towards that, aiming towards that. And then in January of 2020, I had said that was when I gave the rest of my money for my emergency fund over to my loans and finally had the courage to bring it down to $1,000. And then COVID hit in March. But immediately after you gave away your emergency fund, the world's biggest emergency. Yep. And then COVID affect you? So it actually, it was pretty tough. I would say the first few months for sure, because I'm from Michigan. So we got hit hit pretty hard so I normally am in a clinic but we had kind of lessened how much we would see patients so they pulled me into the hospital

because I had that other job so I was able to still work but I did see some things that were not that pleasant I didn't get to work in the ICU or anything but I was still in the hospital seeing patients and it was a very trying time absolutely but I fortunately kept my job and then I think it was maybe like May of 2020 and then I started delivering groceries because I couldn't pick up an extra shift at the hospital and then then it went back to my full-time job at the clinic and then I think maybe June or July I was able to start picking up shifts again at the hospital so I could work full-time and then work on the weekends. And by June, I was like, okay, how can I pay off my debt as quickly as possible? And then I started calculating, recalculating because I was just obsessed with it. And then I realized that I

could pay it off by the end of 2020. And I said, well, nobody's doing anything anyway. I'm literally missing out on nothing. So it actually gave me this motivation and this drive because it was something that kept me going, kept me moving. and then on the three years to the date that i graduated pt school i paid my last loan off with the last little bit so way to go thank you i'm so proud of you thank you it's been i know your mom's proud of you your dad's proud of you they're with you right you came to cheer you on yeah so you had good cheerleaders inside the family. Yeah, absolutely. And they're here, too. So my mom, Rosangela, my stepdad, Scott, we just made a friend, Isabel, who actually just graduated college debt-free last Friday. All right.

So we're giving her a little kudos, too. But the other big supporter was my now-fiancee, whose name is Ethan, and he actually proposed to me the same month that I paid off my loans. Wow. It was a good December. Well, that marks that month forever. It was huge. That's amazing. So proud of you. Thank you. Thank you. Well done. Okay. You're so chipper and so happy. And you were in the medical field through COVID. You got out of debt through COVID. Yes. What's the secret to getting out of debt? I would say that it's worth it.

And it's your student loans don't have to be your ball and chain. I try to talk to people about it all the time. I say, okay, don't let me get on my soapbox because then I just talk all these things, Dave Ramsey, but it really, it is worth it. And you just got to find a goal and you got to set it. You got to know a timeline. So then that way, you know what to work towards and then just race yourself to the finish line. Yeah. If you can put a date down and actually have calculated it and it is logical, there's something about just marking it off then that keeps you going. Absolutely.

Yeah. Versus someday I'd like to. You'll never. No. You've got to put a date certain on stuff. Yeah. Absolutely. Yeah.

Very good. Yeah. Very, very good. Thank you. So good cheerleaders, and you're cheering a bunch of other people on because they can't shut you up. Yeah, I know. It's bad. I love it.

I'll talk to Ethan all the time. Hey, so let's talk about our budget. What about this? What about this? So it's my new favorite thing to talk about. I love it. Very, very cool. What does Ethan do for a living?

Ethan is a naval officer. Oh, wow. Okay. I'll tell him Very, very cool. What does Ethan do for a living? Ethan is a naval officer. Oh, wow. Okay. I'll tell him thanks for his service. And yeah, you guys are going to have a wonderful income with those two combined. That's going to be, and no debt. Wow, wow, wow. Good, good future for you.

Yeah. Excellent job. What was the hardest part of this for you? I would say before COVID, it was more so about the not being able to spend the money going and going to events or people call me cheap pretty often, or I just call myself cheap. And so wanting to be able to do more things or spend more money. But I would actually say during COVID, it was pretty helpful just because of the chaos of everything and everything else was uncertain. But because I had this one goal, it was actually my driver. So something that was something I knew I wanted to do but was still pretty hard to do

then became my, this is what I can focus on during 2020. Because medically, I mean, there's a level of fear around all of that in March of last year. And nobody knew what they were doing. Everybody's running around talking like they knew what they were doing, but we figured out why they call they call it practicing medicine we watched that last year they're practicing and um but it's uh and so for those of you in the actual industry on the front lines it could it could be terrifying yeah but you've got a a reason then to step forward versus if you didn't have a reason going in there in the middle of that man that would be hard because to be motivated to put you know to step up and be front line wow that's tough but

that gave you gave you a place to do it and you know the net result is you were not really at risk right the net result is is that you were okay and that a lot of our fears were um overblown um it's a very serious situation but still there was a lot of drama around it. So well done. Thank you. Very, very, very well done. Thank you. Good for you. How old are you? I'm going to be 29 on Saturday. Hey, not even

30 and you got all of this done. Well, congratulations. Thank you. I've got a copy of The Legacy Journey, which is the latest book I did on wealth, and that's where you're going. And then we've also got a copy of The Total Journey, which is the latest book I did on wealth, and that's where you're going. Okay. And then we've also got a copy of The Total Money Makeover for you to give away. Absolutely.

I've already got people in mind I'm going to give it to. Perfect. Very perfect. All right, Laura from the Detroit, Michigan area, $115,000 paid off in 33 months, making $72,000 to $86,000. She did it during the pandemic. Shut up. Count it down.

Let's hear a debt-free scream. Three, two, one. I'm debt-free! Yeah! Woo-hoo! That's fun. This is The Ramsey Show. Thank you for joining us, America. This is the Dave Ramsey.

Oh, it's the Ramsey Show with Dave Ramsey today. Old habits are hard to break. The phone number is 888-825-5225. Silver's with us in Los Angeles. Hi, Silver. How are you? Hi. Bless you.

I'm mental. How are you? Better than I deserve. What's up? So, I have a lot of numbers to throw at you, but first things first, we own a house. Silver, I'm having trouble hearing you. You're a little bit muffled. Can you speak directly into your phone, please?

Oh, so sorry. Hold on. Is that any better? Yes, ma'am. Thank you. Okay. So we are in a funky house situation. We were gifted half of a house.

We are purchasing the other half. It was in a trust. So with the purchase, we have to owe the party the other half, obviously. When we first started, we just Zillow estimated the house was going to go for $500,000. We did a gift of equity, so we would pay her $250,000, and we did the loan for $260,000 because we do have a little bit of debt. We needed good faith money, so we didn't want to have to pay closing costs, so we just wrapped that into our original escrow numbers.

Okay, I'm sorry. You've got to stop a second. I got confused. I apologize. You have a home that you live in that you're selling um we are purchasing the other half we currently live there and we want to buy the entire house now okay so you own half and you who owns the other half um a family member okay and you're buying them out. Yes.

Is what you're doing, okay. And you need $250,000 to do that. Yes. Okay. And so now I'm caught up. I apologize. I got lost there. And so you need $250,000.

And what happened? So the appraisal came back because we did all this on a guesstimation the appraisal came back for less so now we need to buy her out for 233 we're still going to wrap in our closing costs which is right around 10 000 so we were going to take the loan out for 243 okay we were approved for 260 well we were given the option that we could still take out that 260 so that's a six sixteen thousand dollar difference should we take out that for the full 260 and use that money to pay off debt and just kind of wrap it into our mortgage no or should we just minimize to the

$240,000? $243,000. Take the very minimum you can take. Okay. How much other debt do you have? We have $38,000 in debt, but we have to have good faith money in the account while we're purchasing the house. So $10,000 of that, once the house is finished, is going to go straight towards the debt. How much is in your account for good faith money? A little over $10,000, but we also have, like that's just in our savings account, we have our emergency fund, and then we're just kind of slowly paying because we can't pay anything off until the house is purchased. Yeah, you already have the house is purchased. Yeah. You already have the house purchased.

You just have to buy this person out. Now, do you have a mortgage on it currently? No. The house has been paid off. So it's worth a half a million dollars, and you're putting a quarter of a million into it roughly, right? Yes. Okay. I'm catching up.

All right. But you have enough in your savings once this smoke all clears and the mortgage is closed to pay off all of your debt? Most of our debt. How much is in your emergency fund? We have, well, not counting the good faith money, so technically, altogether, we have $12,000 in our emergency fund. So it's $10,000 and $2,000? Because you mentioned $10,000 earlier. Yes, $10,000 and $2,000 because you mentioned $10,000 earlier. Yes, $10,000 and $2,000.

Okay. All right. And so what we teach is the baby steps, and baby step one is $1,000. Anything beyond that you would use to begin baby step two once you get this closing done and you don't have to have the good faith money laying there. And you do the baby step two, which is take everything out except the $10,000, or except $1,000. So $11,000 is going to go towards the $38,000. What's the $38,000 in debt?

What kind of debt? Two cars. And what's your household income? A little over $110,000. Okay. You've got an awful lot tied up in cars, don't you? Yes. We realized that after.

I found you a little late. Okay. All right. But if we take $11,000 off of $38,000, that puts us at $27,000. And with your income, you should plow through that $27,000 within a year and a half. Okay. And then you build your emergency fund, which is baby step three, and you move on towards building wealth with this four, five, and six, and so on.

And so that's what our system would lead you to do, and our system is first going to lead you out of debt so that you have control of your most powerful wealth-building tool, which is your income, to build wealth. And so, you know, we've got to get rid of those car debt and get your emergency fund in place to lay a foundation as soon as you get this cleared up on the house. But, no, you don't borrow your way out of debt on the mortgage. You don't finance your cars on a home mortgage,

which is really what you're asking me in essence. No, I would not do that. Elizabeth is in Knoxville. Hi, Elizabeth. Welcome to the Ramsey Show. Hi, Dave. Oh, my gosh. I love you so much.

Well, thank you. You too. How can we help? Okay. So I am currently working as a dietician in a hospital, And I've only been here for eight or nine months. There was another position that came open very close to me, about 20 minutes down the road. And that is a significant difference. It's about $15,000 more if I apply for the job.

I wasn't necessarily sure I would get it, but they did offer it to me, and it was about a $15,000 rate. And you make how much? Right now, I make $75,000. Okay, and this would take you up to $90,000 from $75,000, if I heard you right. Yes. Okay, how old are you? 30. Okay, you're right. Yes. Okay. How old are you? 30.

Okay. You're single? Yes. Why would you not take the better-paying job? That's what I was thinking. I was like, well, okay, so it's... Well, something gave you pause. Something made you hesitate.

What was it? Because I didn't know if it would be bad to leave a job that I've only been at for eight or nine months. Mm-hmm. Okay. Well, it would if it was for no reason or you were just too lazy to go to work or something. You know, that'd be bad. But you're getting a substantial raise, over $1,000 a month. Exactly. Okay. Yeah. be bad but you're getting a substantial raise over a thousand dollars a month exactly okay yeah um now i do now i'm i'm a little further away from knoxville i'm actually um more like harrogate

tassel area if you know where that's at i sure do so the position yeah so the position is um in kentucky so i would have to pay Tennessee and Kentucky law firms, and I haven't figured out if that would actually be worth the difference. And how far are you from the Kentucky line? 20 minutes. I live right in Harrogate. Okay, you're right right there. Okay, wow.

Yeah. Huh. Well, I guess you need there. Okay, wow. Yeah. Huh. Well, I guess you need to find that piece of information out, because if it's an extra $10,000, this is not nearly as appealing. With the extra commute, you're going to eat up the other five. Exactly, yeah. So, I mean, no, if it costs you $10,000 more in licensing, then we're not doing that. I don't know what those licenses cost.

Do you? Oh, just my Kentucky license?entucky license no i meant taxes dave okay uh does kentucky i guess kentucky has an income tax they do tennessee does not okay well it's not a hundred percent it's probably five percent i don't know what it is but it's not usually state income taxes most of them like like that are 3% or 4% or 5%. So find out what it is and net it out. And so really what you're going to net is not $15,000. You're going to net $15,000 minus federal taxes, minus your Kentucky income tax, minus whatever extra transportation costs you have by commuting a little bit longer.

So you're probably more like a $10,000 net, if that's what it sounds like to me. If you want to work there in that setting, it's going to be another $1,000 a month net still. So probably I'm looking at it, but it's just up to you. Don't make the decision 100% on money, though. It's quality of life. Do you want to make that drive? Is that a place you want to work? Is that a quality of people you want to work with?

Is that hospital going to be a good fit for you? All of that. They didn't double your income. They offered you $15,000. This is The Ramsey Show. Hey, it's Kelly, associate producer for The Ramsey Show. This episode is over, but if you heard about an event, product, or service and didn't have a chance to write it down, don't worry. We list everything you've heard about during this episode in the podcast show notes section or head to theramseyshow.com.

Thanks for listening.