The Ramsey Show - App - Increasing Your Income Jumpstarts Your Wealth-Building (Hour 3)

Episode Date: February 15, 2024

Девочка-пай Live from the headquarters of Ramsey Solutions, this is The Ramsey Show. It's where we help you win in your life. Winning in your money, winning in your work, and winning in your relationships is the goal. And we can help you. 888-825-5225. Jade Warshaw joins me this hour. I'm Ken Coleman. The phone number to jump in is 888-825-5225.

That's 888-825-5225. Rosalie is on the line in San Antonio. Rosalie, how can we help? Hi, guys. So I'm having a little bit of buyer's remorse with our house. We sold our first home last year and then we bought a new home this time last year as well. And I just feel like it's just way too, way too much money and I'm having a little bit of remorse. Uh-oh, what happened? Walk us through the numbers. Okay, so we bought it our first

home in 2017 and we made $100,000 in equity. Okay. And then I paid off my school loan and we paid off our vehicles and so we were debt-free except for our mortgage. Okay. We bought about a $500,000 home. Okay. And we make about $10,000 every month. That's what we're bringing home. Okay. How much is your mortgage payment? $4,000. Okay. Yeah. That's why you're feeling that you're about 40% of your income. And we would suggest that you be somewhere around 25%. So that's why you're feeling it. Yes. Tell me more. we fell in love our real estate agent was awesome we just qualified and qualified and qualified and

got over our head and just got swept away with the moment yeah because they'll say you're good up to 50 usually like that and then they're like oh your credit score is so good you can get more and more and more i was just like oh my gosh oh that listen the lesson that you just learned is a lesson that so many people need to learn because i I can tell you coming here, when Sam and I put an offer on a house, they were willing to approve us up to 50% of our income. Gladly. Gladly. And they're like, oh, we'll make the approval letter for this much. And I'm like, no, that's good. You can just make it for the amount that we want. So remember, guys, anybody listening, advocate for yourself because they want you to spend spend spend because they get paid off that so just stick to your guns um all right so

you're in at four thousand dollars a month are you both you and your husband working yes i'm a virtual uh teacher and then he is uh he owns a body shop with his dad. So we're both working. And are you working 40 hours a week? Are you both working 40 hours plus a week? Yes. Okay. Yes, and we've got two little ones. I've got a three-month-old that stays home with me,

and then I have a three-year-old who goes to daycare. Okay. How much is daycare? It's not bad for our area. You say as you chuckle when I asked you that question what was the chuckle about it's yes um well I mean that's average how much was it 150 a week a week oh yeah all right that's not bad I was just curious yeah it's yeah it's just an expense because i've debated uh pulling him out and trying to work because i'm a virtual teacher so i can work from home and but i've got a three

month old and then a three-year-old it's just a little bit crazy so what's your what was your interest rate um i think it was right around like 6%. Yeah. Yeah. And this is a 30 year, I'm guessing. Yeah. Girlfriend. All right.

So the choices are not many. Um, your choices are, which by the way, let me just ask, what's the house worth now? It's still sitting the same. It's 500. Like you didn't buy it too high yeah we have 47 to like pay it off and i want to sell but i don't want to pay capital gains yes that's what i'm that's what i'm kind of getting at is right there's here let's well let's look at this logically all right you're at you're in at

40 now the question is do you see a pathway where you and your husband can close that gap and knock it down 20 points to get it where it needs to be with income to increase our income yeah can you find a way to increase your income by 15 percent is basically what i'm asking you uh i feel like we're kind of maxed out with a three-year-old and a three-month-old like we're we're we're definitely busy and so that's that's the reality of the situation if you can't see a clear path to increasing your income 15 so you're closing this gap and then it's sitting at 25 25 28 even 30 right where right where it's a lot more comfortable then you do need to consider some situations going forward now let's look at this

capital gains thing and with real numbers okay let's say that you bought it for 500 let's say you sold it for 540 so So that's a gain of 40%. And your capital gains rate is based on your income bracket. So based on where your income is, I think in your case, you're probably going to be at the 15%. You know, you're either going to pay 15 or 20, I believe, if I'm saying that correctly, but 15% of 40,000. I would sell. I'd take the hit. I was curious what other options you were going to give. Take the $4,500 hit because I think we hear capital gains and we're like, oh my gosh. And you're like thinking that it's going to make you go bankrupt. But when you really draw the numbers,

it's not like you had a gain of $300,000 on this property. So let's just look at the psychological side of the money. Okay. So I think Jade's right. I think that's the option. If you can't increase your income, if he can't do, you know, body work on the side on the weekend, you're going to be stressed out every month as opposed to a little stressed out for a couple months to pay that tax bill. Yeah. Cause when did they move in?

When did you move in? March of last year. So it's been a year. I'd take the hit. I'd take the hit. I'd take the hit. You get out without very little stress at all. And you guys just learn from this and move on. If you literally can't increase your income, then I think that's your only viable option.

I would not bite the bullet and be really stressed out. For over a year? With kids? Yeah. Because I was thinking of just staying here another year and just keeping it real tight with the budget. How tight is it? Are you able to make it work? Yes.

Without credit cards? Yes. Then I would stay for a year. If you can make it work for a year, then stay. If you can't put food on the table you got to get out yeah okay yeah no we're not we're not doing credit cards um my husband could he likes his toys so he could we have a third vehicle we've got a truck probably worth about fifteen thousand dollars and i think we could he's not gonna like me he ain't gonna like me

but if i had been one half of this bad decision I would then be going Alright I'm going to start selling stuff And we're going to stack some cash Well yeah because you're going to sell that truck Because the time is going to come for you guys to move And you want to know what you're going to need Moving truck, boxes, tape

All that stuff that costs And that truck is going to come in real handy to pay for all that And he's a very talented guy doing body work. I'd like to challenge him to work a couple Saturdays. I know you need him at home. I'm going to get yelled at by Jade on Saturdays. But if I was this tight, I want to go find some margin, and I'm going to go work. Yes, Ken.

Men should work. I'm not going to leave you stranded, but I got to go make some money. This is The Ramsey Show. Welcome back to The Ramsey Show. I'm Ken Coleman. Jade Warshaw is with me this hour. 888-825-5225. Hey, folks, this is a breaking news item here.

The money and marriage getaway is back. folks. This is a breaking news item here. The Money and Marriage Getaway is back. This has been a really popular event with Dr. John Delaney and Rachel Cruz. The new dates are for our fall season, October 24 through 26. It's a weekend getaway for you and yours

right here in Nashville, Tennessee on our campus. Two and a half days of teaching focused on communication, intimacy, and money. A lot of Q&A for you to get real answers to your real questions about money and your marriage. You and your spouse are going to come away with tools to get better. I think you're going to be better. Wonderful, wonderful weekend. Platinum tickets already sold out.

Few VIP left. That includes a meet and greet with John and Rachel. Get them before they go. Tickets are $799. That's where they start. You can get them by going to RamseySolutions.com slash events. Visit RamseySolutions.com slash events. All right, time for the Ramsey Show question of the day,

brought to you by our friends at Neighborly, your hub for home services. Winter is the perfect time to freshen up your home's interior with a new coat of paint. Five-star painting can paint your walls and doors, even those difficult cabinets and trim. Find a locally owned five-star painting near you at Neighborly.com slash Ramsey. Love it. Today's question comes from Melissa in Iowa. She says, I'm at a new job making almost double the hourly pay from my last job. My old job was my ultimate goal, but we moved from my husband's career. Even though I'm making great

money, I am completely unhappy at this new job. I miss my old job and coworkers, but my pay is so much better here. I've only been here for three months, but I'm not sure how long to keep going at it before I go looking for something like my old career, where I know that I'll make less money again. How long should I stick it out before finding something more fulfilling like my previous job? For context, we are debt-free and saving for a down payment for a home. All right, so let's get some layers to it. This is funny, because if Dave were here, he'd have a very different response than me. You think? Oh yeah, he's very anti going backward on anything in salary as it relates to meaning. Like it kind of irritates you. Like, well, you can find the meaning in the money and many times

you can, but not always. All right. So here's my take on this. I think I meet you both in the middle. Yeah. My take on this is you're not going to be able to continue to do this much longer mentally and emotionally for the way you laid it out. Yeah. You love the old work. This is just a J-O-B for you. There's no juice or passion in it. And so for that reason, I don't think it's long before you start to look.

I think you could make the case, though, that I would stick it out long enough to get that house down payment. There you go. I like that. And so that's, I'm reasonable on it to say, all right, sometimes we do what we have to do so that, watch this, we can do what we want to do. Boom. It's one of the great lines from the movie, The Great Debaters, Forrest Whitaker's the father in that. And he tells his son that one night.

He's, you know, the son's always wanting to be on the debate practice. And he says, he's neglecting his studies. He says, son, you do what you have to do so that later you can do what you want to do. And I think in this case, I would stick it out. The way that you can do this, because I do not want to minimize the realities, folks, of burnout on the job. When you have no connection to your work, you will burn out fast. And I want to call that out because millions of people are listening and watching this right now going, uh-huh, that's me. So how does she do it? She says every day, I'm grateful for this job that pays

a lot better than my old job that I loved because this is going to help me buy a house that I love. Yeah, I like that. Now, when we get the down payment, Jade, now I'm shifting and I'm going, I'm debt free. I've done a good job on my home. Yes. And I have the margin to make less because it was never about making more in the previous career. She only left it because of the move for our hubs.

Yeah. So in this case, I don't even consider it. I'm taking a pay cut. No, you're going to do the thing that you know you love to yes that's that's so important um and i think people do need to hear that there is a time in a space where you do a job i talked about this a while back with rachel you do a job to get to where you want to go and there is very good reason to do any job until you are able to do the job and in this case love that there is a down payment that you're hoping for and i think a house is a pretty dang good reason to keep keep chugging away

make double the income come on this is a version of paying your dues yeah right yeah i mean i i think about doing work that i did not want to do. Sam and I traveled for, oh, a decade. And sometimes we'd be gone, Ken, 35 weeks out of the year. It's exhausting. And people think it's glamorous. Oh, you're going to Turkey. Oh, you're going to Australia. I'm like, girl, I'm tired. You didn't even know where you were. I didn't even know where I was. And we were at the point where we had already paid off our debt and I was ready to stop traveling and but I was like you know what if we do this a little bit longer we can save for this down payment love same exact

situation you know love the question and so that's my take on that but I will tell you once you do what you have to do there comes a point in life where you better do what you want to do or you will get the end of your journey look back and and regret. That is true. One of the top five regrets of the dying, according to a best-selling book out of Australia written by a hospice nurse, was I did not live the life that I truly wanted to live. That's sad. And it's that important. Yeah.

And we at Ramsey can teach you how to be a millionaire on a teacher salary. The third largest group of net worth millionaires, based on our unprecedented study of net worth millionaires that we did at Ramsey Solutions, the third largest group of net worth millionaires are teachers. The median pay in the United States for teachers right now is about $63,000, $64,000, some of the latest stuff I've seen. And so the point is you can do it. It's where you make enough. And so great question. Love that. And I loved your anecdote and you guys did it. You actually walked it. But I think to your point, what you were just saying, Ken, there's something really important about that, that I do want to highlight, which is

one of the things I love most about the baby steps is when you do baby step two, I think something that we just forget about. When we're paying off debt, we're so focused on, I got to earn more money so I can pay off more debt so I can earn more money. So like we're just trying to get out of that. And you really don't. And probably before you got into the baby steps, you were just in that paycheck to paycheck wheel and you never get the chance to stop and think, if life were different, what would I be doing? If wasn't this tight what what what's really the career I'd enjoy doing and so one of the benefits of becoming debt-free is you declutter your mind enough to have the it's a privilege to be able to sit and think what would I like to do what's

a career that in your words gives me the juice like that is such it's it's very important and a lot of people don't even take the time i was talking to an adult in my life um and i said well if you could do whatever you wanted to do what would it be and they said i don't know i've never even thought i've never had the ability to think think of that tragic it's tragic i i don't know i've just you know i i've done what i have to do. And I'm like, oh man, like we got to get past that. I love that you said that because Dave made this line famous, live like no one else, baby step one, two, three, right? And even the full step, the full process. But the backside of that phrase is live like no one else so later you can live. And then he added

give like no one else. But let's just look at the live like no one else. It's exactly what you just talked about. When you get to that point, you can decide whatever the crap you want to do. Yeah. There's real freedom here, not just financial freedom, but financial freedom gives birth to so much more freedom. That's right. I can live where I want to live.

Yeah. Travel to where I want to travel. You start to fill in the blank. I want to. And you start to see what's truly important to you. You start to realize maybe you're not a person who really is motivated by money. Maybe you're more motivated by being able to serve. Maybe you're more motivated by being able to create something.

But because our debt has made us... Debt makes everybody money motivated. And so you lose track with who you are, which is very interesting. I want to call that out, folks. That was a little bit of a bomb right there. Debt makes everybody money motivated. That's pretty good. That's the name of my next book. Because you don't get to choose, by the way. It's like, you're so obsessed with money. I don't have a choice.

I don't have a choice to be. That's a really great point. And yet the opposite is sold to us in culture. Yes. We're sold debt as freedom to live however you want. Right? That's a really great point. And yet the opposite is sold to us in culture. Yes. We're sold debt as freedom to live however you want. Right? That's right. But you're actually right. Jade Warshaw, folks, write it down.

Put it out on social media. I think that was absolutely great. Oh, man. Think about that for a little bit. I feel like the line from Lion King. Ah, see what not. Not that one. No.

It's where the one lion says Mufasa's name in front of the hyenas, and one of them goes, ooh, say it again. Mufasa. Yeah. That's it. That line? Yeah. That line had a little Mufasa on it.

Ooh. Ooh, say it again. This is The Ramsey Show. Welcome back, America. You have joined The Ramsey Show, where we talk with you about you, specifically your money, your work, and your relationships. I'm Ken Coleman. Jade Warshaw joins me.

The phone number is 888-825-5225. Let's go down to Daytona Beach, Florida, the home of the Daytona 500, the Great American Race. Alan is there. Alan, how can we help? Hey, guys. Thanks for having me on. You bet. What's up?

I'm looking for some career advice. All right. I am graduating chiropractic school in March, and I've been getting some offers. And I got my first offer, so I want to kind of run it by you guys and see what you think. I love it. Walk us through it. What's the offer? Yeah, so it's a salary position of $60,000, and then there is a monthly bonus of 8% of collections based on collections above $45,000 a month. So when I'm in this negotiation stage, what do you guys recommend I should focus on? Should it be the bonus structure? Should it be

the salary? What do you guys think? I'd like to know more about the bonus. When they walk through this, or did they walk through what the averages are on how many times they're over the 45,000? Because if I understood this right, you don't get 8% unless they hit over 45 in billing. Right, right. Did you ask them? I did not ask them, but just from, I'm precepting or internship, doing my internship there. Okay. And just from like gauging, it's a growing office. I want to say they want to make, they make about 30 K, um, every month. And with me coming on, they kind of assume or hope that they're able to grow the practice even more. So this is kind of new, but yeah, but see, you're assuming. I don't like assuming. And I want to get in and go, okay, let's talk real numbers. So when I come on board, how many patients do you expect for me to see? What do you think is realistic? And I just walk through that. Just have them walk out and say, hey, I just want to make sure I understand the bonus thing. How can I play into it? Because that's the other thing I'm wondering. Are they wanting you kind of spreading the word a little bit?

Because here's the deal. I don't know what a starting salary is. So to be fair, what I would do is I'd be looking in your area, and I'd be looking at what starting salaries are for chiropractors right out of school. And I'd want to see on that offer of 60k just the base alone is that low medium or high so i'd get educated on that that's exactly where i'd start then i'd get the explanation on the bonus and and if i can figure that out and go okay what are the possibilities that we hit that and uh well that could be interesting glass door says between 63 and 110 per year in the state of Florida.

Starting out. Yeah. And Indeed also says between 67 and 110. So I wonder if they're trying to fill that gap. Do the math for me. Give me 8% of, let's go conservative, of 45,000. I know roughly what that is. Let me... It's 450 times eight basically yeah i got it right so it's going to be somewhere on the four grand range sorry is that right alan

am i saying that right well it would be it would be anything over 45 yeah he doesn't get the 45 it's whatever's over so if you get let's say you earn let's say you earn 48 000 you get 8 of 3 000 that's nothing yep oh i apologize yeah so based on what jade found even with the bonus and let's say you hit that tell me if i'm starting to be too conservative maybe six months out of the year and let's say that the average is 3 000 over using these numbers okay right so three times that's 16 000 and you're getting eight percent of that so yeah it's it's really on the low end feels like to me yeah now yeah let's not just take i mean jade's got it i'm looking at it but let's not just take those numbers on the internet at face value let's go dig in a little bit and um

and it because it's your first offer i'd like to see you be getting a little bit higher offer than that. On that bonus, conservatively, you're looking at maybe $3,000 to $4,000 above and beyond the $60,000. So how do you feel about that? It's your life. I feel like I'm in the position to really help the practice grow just from my expertise and what I'm passionate about. And I feel I can add and market myself and market the practice even more, especially in the area.

There's just an untapped population that they haven't gotten to yet. So I'm asking you, do you think that's a good offer? I mean, I have a lot of debt, so it's a lot of student loan debt, so it's a little tough for me to swallow that 60. What's keeping you in Daytona? Can I ask that? Because I'm looking here and I'm looking at the highest paying cities for chiropractors in Florida, and I'm seeing that Pensacola is $96,000 a year or Jacksonville. So I'm wondering if you're tied to Daytona. Great suggestion. Alan, you called to say, what should I do?

I certainly wouldn't. I'd try to get a few more offers. And I love what Jay just said. I'd start going, where can I go? Yeah, especially with the debt. That's what's motivating this is, how can we get more? I'm afraid to ask. How much debt do you have?

It's $238,000. Oh. Where are the Tums? It's brutal. It's brutal. Now I'm really on Team Jade. I'm looking anywhere in the country. Yes.

Because I got to get a big shovel, which is your income, and dig out of this $200, fast as possible my man what i do like about what i see here is the top paying positions are in north florida which is far less expensive than south florida right now south florida is crazy so you increase your income you're increasing your cost of living so it's a it's a wash but i feel like in north florida you could probably it'd be worth it for you, or even going out of state to a, you know. I would definitely search is all I'm saying, because $238,000 of student loans, she ain't going away.

That's not a bill, that's a William. If the highest paid offer I could get was in the middle of Wyoming, I'd go. I know. Nothing against Wyoming. Please don't send hate mail, I don't read it. But I'm going, I don't care how cold it is. It could be 200 below zero. Alan, I would get the biggest shovel possible to get, because listen, you can be a chiropractor anywhere you want to, to our last segment talking about freedom, Jade. Yeah, that's right. I'd be shopping myself,

young man. Yeah. Yeah. Yeah. I understand. Thanks, guys. Yeah. I really appreciate the call. Jay, this is why we tell people don't go into debt. I know. I'm just mad that you missed my joke. Say it again. I said that he has $238,000 of debt. I said, that's not a bill.

That's a William. Nice. I apologize. I apologize. I was still reeling. That's a William. Nice. I apologize. I apologize. I was still reeling. It's a lot. It's a lot. I was reeling from his reality. And this is what we talk about. You know, I think so many people go into college, their professors, their guidance counselors, their family members are telling them, hey, careers like these will roi you know and you kind of feel like that it's this given that okay like i can take out this debt and if i get my job it'll just pay for itself and the thing that we have to tell ourselves is nothing pays for itself like you have

to go out and work and pay for it like they don't you don't just get the job and then hand you back all the money that you paid on your student loans you have to go to work and clock in actual hours to make it pay for itself and that's not fun to do okay you're absolutely while you were talking i was you inspired me on the computer so i was like let me just do a little search what'd you find that there is a chiropractic school i'm not going to say it because I don't want to endorse and I don't want to. There's a chiropractic school that is only charging $12,000 a year. Now, I don't know if they're cuckoo, quacky, which is why I'm not going to. You understand why?

Yes. But I'm just saying. There's ranges. Because here's the deal. I love chiropractic care. You probably don't know this about me. I love the snap, crackle, and the pop. And are you cool with this?

Are you cool with going to Dr. 12,000? You know why I'm probably cool with it? Because you don't ask. Yeah. Have you ever been to a chiropractor? I'm not. I'm afraid. I have.

Oh, no, it's fantastic. I love it. Fantastic. In fact, I'll recommend. A nice married couple that Stacey and I go to, all of our kids. It's great. But anyway, here's the point. I never asked them where they went to chiropractic school. I can tell whether or not they're cuckoo, they're quacks. I mean, check the reviews is all I'm saying. And what you've done. 100%. They were highly recommended from people that we know and trust.

This is how we all pick doctors. That's right. I guess my point is that no one cares how much your chiropractic school costs. They just want their back and neck to feel better. That's true. I need an adjustment now. All this talk about it. I need a little adjustment. That's like that episode. My neck feels a little stiff. That's that episode of Seinfeld where Kramer just does adjustments and he doesn't have the real education. Alex Hearn gives me one in the back. He can pop my back. This is The Ramsey Show.

Welcome back to The Ramsey Show. I'm Ken Coleman. Jade Warshaw joins me this hour, 888-825-5225. Here's the number to jump in. Our scripture of the day comes from 1 Corinthians 15, 58. Therefore, my beloved brothers, be steadfast, immovable, always abounding in the work of the Lord, knowing that your labor is not in vain in the Lord. Our quote of the day from the, I think, one of the great voices about American liberty and freedom

and just a great philosopher, Thomas Sowell. He said, people say you're a very tough person. I'm not tough. Life is tough. I'm merely trying to acquaint you with the facts. He's a no-nonsense guy, Thomas Sowell. I like that. I like that. Like him, man. He's one of my favorite voices in the world. Fantastic, fantastic guy. All right, let's go to Veronica in Tampa, Florida. Veronica, how can we help? Hi, good afternoon. Thank you for taking my call. I'm calling because my husband and I are trying to figure out what's the best route for us to take to pay off our student loans. We have about 110,000 student loans. My husband, I don't work outside of the home. I actually recently resigned to be a full-time stay-at-home parent.

And we are also expecting our third child. So I don't anticipate on working for the next several months. My husband earns about $112 annually. That's before taxes. And we just are pretty overwhelmed with the total amount of our student loan debt. And we were discussing, like, should we sell our home and downsize for the time? Should I find a job? Is the student loan debt the only debt that you have or do you have other debts as well?

No, we have a $12,000 car payment and 2,800 medical bills that we're likely going to pay off this year. So our biggest concern is the student loans just because it's such a mountain, you know, it's like really big. Yeah. I mean, it is. I want to know what were you earning before you resigned? Before I resigned, I was bringing home about $55,000 and my husband was still in around the $110,000 range. So combined, it was about $160,000. So conceptually, I like to kind of pull this out of the clouds and bring it down. Back when you were working, you guys were bringing in, you said for him 55 for you you guys were bringing in you know 167 000 almost 170 000 you guys could have lived on 70 and been out of debt in a year with some side hustles right so now when I was working we we did have to pay for child care.

And that just that was almost all of my income. OK. And we do budget every month and we look at all the areas that we can cut back on. And it just seems like there's still not there's still not like enough to make the headways on our student loans. Okay. So let's, let's, let me, let me give you a plan and we'll see if this strikes a chord with you. So the way that we teach, Oh, but before I give you a plan, how much money do you have saved? Probably like 10 or 12,000.

Okay. So we'll say 11,000 saved. Yeah. Okay. So a couple of things about how we teach here. We teach a series of seven baby steps. Have you heard of them? Okay. So the first baby step is you get a thousand bucks saved. Does that ring up, sound familiar? Right. Okay. So you know that one. Second one is we say to list your debts from smallest to largest and pay them off. And that's called doing a debt snowball. You pay minimum payments on everything, but you focus on the smallest debt so you can knock it out, pay it off, feel good about yourself, get that dopamine hit and feel motivated to continue on. Right. So there's a purpose in doing it that way the way that you talked about doing it was flipped on its head and when we see that it's a lot harder to stay motivated because all you see is this giant mountain and you don't have any uh trail of success to tell you that you can do it you just have to stand there and go all right i guess i have to start climbing where if you do it smallest to largest you've got you you've proven, hey, I can be successful.

I paid off all those bills back there. I'll be able to pay this one off. It's just going to take a little bit longer. So mentally, it really does help you. And I want to I don't I don't feel confident that I've convinced you to do it that way. But I really, really, really think you should. We believe in the dead snowball method. So we've actually done it before. Okay. And before my husband, right when my husband and I got married, we combined everything. Okay, good. And we had our student loans.

We had our student loans. They were still there. We had just graduated college and everything. But we had thousands and thousands of dollars in consumer debt. Okay. So you've made headway. Yeah, we've made a lot of headway. We actually sold our first home,

took the proceeds to pay off all of our consumer debt, downsized for about 18 months, had another child, and then we purchased a home. We put 20% down and now we're like okay we feel like we we didn't we didn't obviously we didn't go all the way the first time because we still left our student loan but that's the difference i'm calling this out because that's the difference you guys didn't work the debt snowball you sold a home and paid off that consumer debt and there's nothing wrong with that but you never exercise that mental muscle of spending time and effort

at one task and hammering away at that task and proving that over time you can display that discipline and I think that's what's missing and now you're looking at this 110 of student loan debt and you're like oh crap I don't have anything I can sell to make this go away I'm actually going to have to like do the hard hard work and I will never stand here and tell you that it's easy because it is hard um and I think that's where you guys are like dang it like we did all this sacrifice and we sold this house and we did this and we did that and we still have debt um and so I think this time you are gonna have to walk through that step and the great news about it is when you do it this way, you're never going to go back

into debt again because you're going to go, oh my God, I never want to have to go through that again. So go ahead, Kim. Veronica, have you and your husband sat down and just started mapping out, okay, how long would it take us to pay this off if we did this much a month, then a new total this much a month, then a new total this much a month, it helps to break this big mountain apart and go, all right, and I'm throwing this out there. If we did $1,000 a month, even if we had to really hustle to come up with $1,000 a month to knock this out, okay, that's

$12,000 a year. So then you start doing the math on that. Then what would it take to do this? You have some bigger months. We sell some other stuff and maybe put $2,000 one month. Have you sat down and really said, okay, what could we do right now? And then what would we have to do to be able to really put a good chunk on this, like a $3,000 a month, which now knocks it down to about a little bit less than three years. Have you done that? Yeah, we've done that. We did, we've done it on a high level what's stopping us like what's like what seems like the bottleneck is the fact that i'm not working which is something that's very new to us yes but it is my choice let me encourage you though your work before was literally going to child care it was almost like a net law it was like a net net like so so i actually don't

think you should let that hold you up because and i'm not trying to make you feel bad about all that time you work, but if your work is barely covering the child care for you to be able to work, then you weren't gaining anyway. So I don't think that I want to get over as a mental hurdle. Does that make sense? Right. So now we go, wait a second, the good news is we're saving a bunch of money on child care. You're at home with the baby. So now we go go how do we increase our income and and and my point is you guys have got to sit down and go all right what can we do scrapping scrapping you know i'm sitting next to a lady who she and her husband scrapped and hustled and paid off almost half a million dollars. It's not easy, but Jade, it can be done.

We're willing to do what we need to do, I think. And this is definitely not a burden at all. This is a blessing, the fact that we're growing our family. It's just the thought of, you know, like, okay, I'm set to give birth. My husband has finally leave. He'll be home with us. We have two small children already. So it's like okay, it's almost like putting a pause

to this for the next six to seven months because my husband works a lot now anyway. So he's probably like he, you know, can't really he can but we don't want him to have to get another job right now with the baby and pregnant and everything. And here's the thing. I don't want him to have to get another job right now. Right. He's pregnant and everything.

And here's the thing. I don't know how long until the baby comes. Real quick. Four months. Okay. Three to four months. You've got three to four months where he can be scrapping. You have the baby.

He pulls back for a couple of weeks until everybody's home and well. And then you guys get after it. You've got to get after it. You can do this, but you've got to make up your mind that you can. Good show. Thank you, Jade Warshaw, James Childs, and all the guys in the booth. Thank you, America. This is The Ramsey Show. Take care.