The Ramsey Show - App - Insane House Prices Aren’t an Excuse To Do Stupid Stuff

Episode Date: May 10, 2022

Dave Ramsey & George Kamel discuss: Should you commit to a 3-year work contract? How to know if a debt collector call is legit, California's stupid program to "help" homebuyers borrow their down payment, How to help your kids choose a college. Want a plan for your money? Find out where to start: https://bit.ly/3nInETX Listen to all The Ramsey Network podcasts: https://bit.ly/3GxiXm6

5 from the headquarters of Ramsey Solutions, 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, George Campbell. Ramsey Personality is my co-host today. Thank you for joining us, America. We're so glad you're here as we talk about your life and your money. We talk about helping people build wealth, doing work that they love, and create actual amazing relationships. The phone number is 888-825-5225. Jacob's going to start this hour off in Fargo, North Dakota.

Hi, Jacob. Welcome to the Ramsey Show. Hello, Mr. Ramsey. It's a pleasure to meet you. How are you doing? Better than I deserve, sir. How can I help? Great.

So I'm a 20-year-old college student, and I recently finished my sophomore year of college, and I'm currently studying to become a nurse. I have roughly two years left in my program, and I'll be able to graduate debt-free in 2024. Good for you. In addition to that, yeah, thank you. In addition to that, I currently work as a CNA at a large hospital in the Fargo area, and I was recently approached by my manager, who came up with an offer for me, and she presented an offer where I would be able to work at this hospital for three years after graduation.

In addition to that, I will receive a $30,000 sign-on bonus. Given that I'm only halfway through this program, I'm a little hesitant at the moment to take this offer, but I'm curious if this is something I should entertain. So the only advantage to you is $30,000? Correct. And I've had a really strong working relationship with this hospital, and I do enjoy working at this hospital. Okay. Have you looked at options in your area for other hospitals and what the pay would be?

I have a little bit. Currently, this hospital pays about $2 less an hour than other hospitals, but it's a very good starting wage for nurses in this area, in this part of the country. So I consider it to be competitive. Okay. Well, I'm kind of with you. Number one, let's just establish nursing, incredible career path.

And as long as I've been doing this show for 30 years, there's been a shortage of nurses. Correct. So you've always been able to land a job, you know, and lots of different kinds of jobs, actually, within the nursing field. And so a lot of flexibility, always a need for you, that kind of a thing. So if that's kind of our baseline, then off of that, I don't think I'm tying uh myself um you don't need the money you've got you've got a way to work your way through school with no debt you told us that way to go good job and um and so the money's just kind of gravy on the biscuit it'd be nice but you don't it's not like it's not like oh i cannot have to borrow student loans if i do this. I might think about it then, but in this case, you got your way mapped out to go all the way through, and then you're a free agent upon graduation.

I'll bet you could get more than $30,000 at that point. Sure. Yeah. And that's the part that I'm struggling with is it's really hard to predict what would be out there in two years if we're at a peak now, if this is a good time to take an offer but i i think i think there'll be a you know again i'm gonna say i'm gonna establish the fact in my mind anyway anecdotally i don't have research to back it up but that there's pretty much always a shortage of nurses and so that means that you will be able to land something and probably something with a signing bonus.

I wouldn't doubt it a bit. So I kind of think that offer or better might be on the table at graduation. I might be wrong. We're gambling a little bit. What's the harm in waiting until graduation? Well, $30,000 if they don't have any more, you know? Yeah. You miss out on that if we're wrong, right, if it's off the table.

But the way I answer questions on this show is if I woke up in your shoes, what would I do? I'm going to bet that there's going to be as good a deal or better on the table, and I'm going to say thanks. Let's talk as I get a little bit closer to graduation. Okay. That's the advice I needed to hear, so thank you so much. Thank you, brother. Appreciate you calling. Man, I got to tell you, George, this is the sharpest bunch of 20-year-olds I've run into.

They're everywhere. Of course, I'll call the show, and, you know, my gosh. I mean, he has a question written out, but, you know, but still. It gives me hope. Yeah. It's pretty impressive. People actually want to work out there. When I was 20, nobody was offering me a signing bonus.

I'm just saying, okay? I'm just saying. All right. All right, AJ is with us, Jim, for good reason. AJ is in Austin, Texas. Hey, AJ, what's up? Hey, Dave and George, thank you guys so much for having me on today. I really, really appreciate it.

Sure. How can we help? Well, I'm calling. I really, really appreciate it. Sure. How can we help? Well, I'm calling, I just started a financial piece. Me and my wife started financial peace university about three or four weeks ago. Uh, we're on baby step number two, and it's been absolutely great. Um, you know, we're still working on trying to get our budget, uh, figured out and how that actually works. So I'm working with the instructor there to try to help with helping us understand it a little bit more.

But the reason for my call is I got a call today from a company called ADR, Alternative Dispute Resolution Center. And they said that, you know, they were going to be their legal courier and they were going to be delivering papers to me uh tomorrow okay uh explaining that we had a judgment against us from bank of america saying that we owed them um 1263 dollars and it was from they said overdraft fee from 2007 does that sound like something that happened? I vaguely remember, to be honest with you, but I guess it is somewhat possible. Did you have a bank account with Bank of America in 2007? I'm not sure, but I think I may have. It's been so long ago, obviously.

Obviously, if I did, it was very briefly. It was very brief in regards to having it. But I guess I'm calling it a day. What is going on in your life in 2007 that you can't remember who your bank was? Well, I had recently just got drafted. I remember I had gotten drafted to play ball. Oh, you were paying attention to nothing okay except baseball now that makes sense that makes sense all right so you think there's a at least a reasonable possibility that you open an account with them and that these overdraft charges might be true

yes sir okay so well when they deliver it tomorrow if they really do that's probably bs but when they deliver it tomorrow call if they really do, that's probably BS. But when they deliver it tomorrow, call them up and offer them a settlement. Well, the guy told me on the phone today, he said that once they deliver the paperwork, he said that I can no longer call them in order to negotiate. They said I'd have to go to, I guess, whoever the company is here or the court. Okay, we can do that. That's fine. That's fine that's fine go to them because i'm saying this isn't going to be delivered okay i'm saying this guy's lying

okay i may be wrong i may be wrong but what's the worst case scenario uh they deliver the papers and then you call the new people and negotiate with them. Whoever it is, if you have a bill outstanding from 2007, wants some money, and they would love to settle with you. They'd love to take $500 and make this go away. You got a little money stored up? You could come up with $400 or $500 and make this go away? Yes, sir. Good.

Well, don't negotiate with a dupe on the phone. And don't give them access to your checking account either. Under any circumstances, if you settle a debt, no access to your checking account to settle it, and you must have it in writing that the settled amount settles the debt in full. It can be an email, that's fine. But no electronic access to your checking account. George is right. This is the Ramsey Show. Hey guys, George Camel here.

Listen, if you know me, you know that one of my spiritual gifts is giving away Dave Ramsey's money. And he's got a lot of it, and so I don't feel that bad. That's why I'm pumped to tell you about the Ramsey Cash Giveaway. Every single week, we're giving away $500 cash and a grand prize of $3,000. Now, I know what you're thinking. George, $3,000, that's going to fill my tank once at the gas pump. Listen, I get it. And here's the good news.

You don't just enter once. You can enter every single day. That's right. When you wake up in the morning, just go to ramseysolutions.com slash giveaway every morning until it's over. There's no purchase necessary, but you do have to be 18 or older to win. Sorry, kids. You just were born at the wrong time. Here's the other thing. 10 bucks. What could $10 do for you? Well, you can get a Chipotle bowl with no guac. That's no fun. Or you could get, I don't know, a life-changing book. That's right. The $10 sale is alive and well despite inflation. So you

can get some of our best-selling books and tools for just $10 or less. So go shop it. RamseySolutions.com is the means to have life to the fullest. Picture all your favorite speakers together on one stage, giving you the tools and the principles that will create unstoppable momentum in your life. Well, that is Smart Conference. Yep, Smart Conference is back. It's been three years. We're so pumped to get the event back on the road in Dallas. That's right, Dallas, we're headed your way on Saturday, October the 22nd.

It's all of the Ramsey personalities, and we'll be speaking, of course right, Dallas, we're headed your way on Saturday, October the 22nd. It's all of the Ramsey personalities. And we'll be speaking, of course, on money, on personal growth, leadership, mental health, relationships, career. And our friends Pastor Craig and Amy Groeschel from Life.Church are coming. They're going to speak on marriage. It's going to be incredible. You won't want to miss this. Dallas, tickets are only $39 for a whole day. And at the end of the day, you will leave smart.

It's the smart conference. You're going to love it. Hey, I'm serious. This is a blast. We should charge $339 for this lineup. All of the Ramsey personalities on the lineup. It is going to be a full day. Get your tickets now at Ramseyysolutions.com slash events. And George, we will be in Orlando

a week from Thursday doing our last building wealth event of the spring. And then we've got four events in the fall. But Orlando, May 19th, if you still want tickets, they're only $25. A four pack if you want to bring some friends for $60. That's $15 a ticket. You can't buy a pizza for that. So come on out. We'll be in Orlando one week from Thursday, May the 19th. And that Building Wealth in Las Vegas the other night was a lot of fun. If Orlando is anything like Vegas, we are in for a good time.

The people there were amazing. There was a lot of people who didn't even know. They were like, this is my first thing with Ramsey ever, and it was amazing. There's people who are longtime fans of ours who have done all the baby steps, and it was just encouraging to be with real people who wanted to transform their life. So that's what these events are about. You know, in the Building Wealth event, one of the things we talk about is that when you get desperate, afraid, or angry,

the higher thinking parts of your brain shut down and you don't make good decisions so i have found in my life once i get if i get greedy if i get uh afraid if i get desperate right after that i get stupid and right after i get stupid i get broke and so that's what's happening in the housing market right now because oh god the house prices are up and oh god the interest rates went up and oh god i'm never gonna be able to get a house oh god and once your brain starts doing that you're getting ready to do something stupid party's over there's going to be a lot of regret and they call into this show and go dave i did something stupid dave help me where were you three years ago when i was doing something stupid i was

sitting right here that's where i've been for 30 years find the show i haven't moved i'm still here and i'm still telling you the same things about money because these principles that we teach are timeless now we teach are timeless. Now, we teach people to get out of debt and stay out of debt. When it comes to a house, it's the only debt we don't yell at you for. And we always have told you and we still will tell you, even with the house prices so high, to get a 15-year fixed rate where the payment is no more than a fourth of your take-home pay. Now, why do we do that? Just because we're killjoys?

Kind of. Just because we don't want life to be good for you? No, we do that because we love you. We care about your financial future more than that banker does, more than the mortgage companies do. We're not making money off of this. Off of you getting a mortgage or not getting a mortgage, or you getting a house or not getting a house.

It's okay. We're okay. You're okay. But here's the thing if you get in crazy mode because of what's going on out there you're gonna buy too much house you're gonna put it on a 30 year and you're gonna be stuck in the middle class or lower middle class loop all in the name of buying a house because buying a house is financially smart if If I can't get one now, I'll never get one. Well, they're throwing money away, Dave.

They're throwing money away on rent. That's the argument. Calm down. It sounds like a weather forecaster when there's a tornado warning. That's the way your brain sounds. Oh, God! That's their Super Bowl. That's where they get to create all the fear.

Oh, man. So, yeah, when your brain is doing that and so you know and people do it when you know the first time i ever heard it was like okay i live in california math doesn't work in california well we kind of know that but yes it does different reasons a lot of psychedelic drugs involved in this but yes it does work yeah so here's the thing speaking of california math cbs news is reporting one of the biggest hurdles in buying a home is coming up with a hefty down payment california has a new program to in quotes help first-time homebuyers jump that hurdle what do you think george oh boy keep reading you got it california's forgivable equity builder loan allows first-time

homebuyers who have enough income for a monthly mortgage payment to borrow up to 10% of a home's purchase price to buy a house outright. The loan has an interest rate of 0%, but borrowers who don't occupy the home for at least five years may have to repay the loan. What a concept. So, you can borrow your down payment at zero percent in california the new effort comes as real estate prices have hit record highs in california and rising interest rates

have pushed monthly payments up hundreds of dollars this is the way people's brains sound i'm telling you i know exactly how your brain sounds. Because this is how mine sounds right before I do some stupid butt stuff. It sounds like a beagle chasing a rabbit. Is that what it sounds like? I don't know. Something like that. But I mean, your brain is shutting down. But the numbers on this are...

A standard down payment of 20% for a home in California could cost upwards of $100,000. Well, no kidding. That's the thing. If you get a million-dollar home and they're letting you borrow up to 10% at 0% interest, so letting you borrow $100,000. Well, no kidding. That's the thing. If you get a million-dollar home and they're letting you borrow up to 10% at 0% interest, so letting you borrow $100,000, you still then have to go get a $900,000 mortgage.

And that's if your income qualifies. That's assuming you qualify. But here's the problem, okay? You can't look out there five years in the future and know what stupid butt stuff the state of California is going to do that makes you want to

leave and you can't leave because then you have to repay that loan today today today here is the thing so even crazy people that believe in debt are saying don't do it aren't they george yeah oh yeah credit karma came out and said this is probably a bad idea if credit karma is saying don't borrow the money this tells you don't borrow the money. I mean, this is like Jack Daniels telling you not to drink bourbon, okay? I mean, it's some bad bourbon, right? It's got to be bad. Oh, my gosh.

And I looked into this. Your income has to be less than 80% of the area median income. And so they're saying if you're broke enough, you can then afford all of this. And like I said with the numbers, housing in California, not cheap. So even with the borrowed money, they're allowing people to borrow way more to get into homes they can't afford. Okay, so these are less than 80, so you're eight-tenths of the median, the middle income of the area. To qualify. So this is middle income or lower middle income people only that are going to get

in this trap yeah which are the people that can't get a house oh god you can't get a house listen i'm making fun of you because i know how your brain sounds i know that some of you have a valid concern about buying a home in this market it's scary out there house prices have shot up like crazy all the indications of all the data from the industry is it's going to calm down no it's scary out there house prices have shot up like crazy all the indications of all the data from the industry is it's going to calm down no it's not going to come down it's going to calm down and uh data that george and i saw in a meeting yesterday was that uh in 2020 house prices went up 32 percent uh in 21 they went up what was it 18 and i was 14 i think okay and they're expecting them this year to go up seven percent so it's slowing down so the rate of in and the average

house price year is about four percent okay over the last 25 30 years so we've had this huge spike post pandemic the spike is tapering off there will continue to be a an appreciation an increase in value but it will be a more reasonable and no you're not going to get priced out of the market is tapering off, there will continue to be an appreciation, an increase in value, but it will be more reasonable. And no, you're not going to get priced out of the market if you continue to grow your career, you continue to manage money well. Are you going to buy a house right now? Probably not.

You might be too broke to buy a house right now. You might be too broke to buy a car right now. You might be too broke to go on vacation right now. So don't do it. But Dave, I got to live my life yeah yolo baby yolo i'm serious it all this stuff is temporary and so calm your butt down don't use the emotions of the current inflationary cycle to um cause you to dive off the deep end into a pool with no water it's just don't do it don't do it calm down this is the ramsey show We'll be right back. George Campbell Ramsey personality is my co-host today in the lobby of Ramsey Solutions.

On the debt-free stage, David and Sarah are with us. Hey, guys, how are you? We're doing great, Dave. How are you doing? Better than I deserve. Welcome. David and Sarah are with us. Hey, guys, how are you? We're doing great, Dave. How are you doing? Better than I deserve. Welcome. So good to have you all. So how much debt have you paid off?

We paid off $187,000 in two years and eight months. Good for you. Good for you. And your range of income? Range starting when we actually got intense and started eliminating the debt, $150,000. And then about halfway through, we had our first child. And at that point, Sarah stopped working, went down to about $100,000. And then she's been able to work part-time from home.

So we're back up to about $110,000 at this point. Excellent. Good. Okay. And where are you guys from? We're here from Fayetteville, North Carolina. Oh, very cool. Very cool.

And what was the $197,000 in debt? So $12,000 was a car. $75,000 was student loans. And the remaining $100,000 was our house. He paid off the house! We did. We're people! We are weird and we are happy about it.

I love it. Way to go, guys. All right. What's this house worth? So conservative estimate would be about $165 at this point. Fun. Fun. Very cool.

Very cool. And oh my goodness. How old are you two? I'm 30. I'm 29. And you have a paid four house. We do. That's whack.

We do. That is whack. I bet you don't have any 30-year-. We do. That's whacked. We do. That is whacked. I bet you don't have any 30-year-old friends that have paid-for houses. Not that I am aware of. I like to think of George as my friend. There we go. There we go.

This is good. Ding, ding. We're starting a trend here. I like this. I'm really impressed with you guys. What made you, out of curiosity, go, you know what? We're not going to just tackle the car loan and the student loan. We're just going to keep plowing through to the mortgage. Are you just that

weird? I would say it took a little while to get to that point. Starting all the way back at the beginning, I grew up with your plan and a huge fan of the show for a long time and I didn't have any debt. But then coming in to

the marriage, I had never actually had the opportunity to practice the principles. And then I had to come and tell him that I had student loans during marriage counseling, which I thought he knew, but apparently he had no idea. That's what marriage counseling is for. Precisely, yeah. Pre-marriage counseling. That's right. Correct. So anyway, I just remember telling him and thinking like, oh, he might be kind of disappointed or whatever.

But his face just lit up and he was like, I get to practice what I believe. You were joking. And he was so excited. And the way he phrased that was so healthy. He came on. He had the opportunity to experience debt. Wow. That's exactly right.

So once we were done with paying off the- Your car loan also, Sarah? So we actually, it's a longer story than this, but when we moved, so he's in the Air Force. And so when we changed stations, I actually got a job before him. And so bought a vehicle for my parents, but we didn't have the money to pay for it all at that time. So they were gracious enough to allow us to have the vehicle and then pay them back in installment they were gracious enough to get you further into debt that's all right so 12,000 and 75,000 comes with the package that's right all right cool and then so you get married and it's just both of you're talking about this and you find out sarah that

you've married this guy who's thinks this is fun Yes. I mean, how sick is he, really? Pretty sick. I do remember another funny story. I came home when we were living separately because I got a job and he was still, we were in California before and then moved to North Carolina. And I came back to visit and he had your book like with him in his bed. And I was like, what are you doing? Her exact words were, stop sleeping with Dave Rees. like with him in his bed. And I was like, what are you doing?

Her exact words were, stop sleeping with Dave Rees. They're going to clip that one for YouTube. I was like, oh, I have to put that back on the shelf. You said that out loud. Oh, dear.

That's fun. Anyway. But you took it in stride and you decided, all right, game on. We're going to pay this thing off. That's exactly right.

Yeah. Basically, back to your original question. How long have y'all been married? We've been married almost four years. Four years next week. Okay. Yep. Wow. Thank you for your service.

What do you do in the Air Force? Thank you for your support. I'm a nurse in the Air Force. Excellent. Excellent. Cool. Good work. All right.

And now we're done. House and everything. That's right. And now we're done. House and everything. That's right. So now you've officially not only studied the theory, but have actually experienced it, David. That's right. And Sarah, having done both as well now, what do you tell people? I mean, you're 30 years old. You have a paid-for house. That's weird.

How do you do that? That's what they want to know, right? Yeah. So I would say the biggest thing that i've learned is just um learning to be content with less um so i remember very vividly like starting my career because our when we got married timed out to when i finished school so um i like quickly learned like now i have a discretionary income i've never had that before and what that looked like and how to kind of use that money, um, in a way that we wanted to and felt like was honorable.

And so quickly I learned though that, you know, these goals that we had and that David kind of taught me about, um, aren't normal. So, um, exactly. And so for me, it was a big learning experience of just being able to feel content and, um, yeah, just be happy in what we did have and being thankful for, you know, what the Lord has blessed us with and being okay with not having the nicest car in the parking lot and the nicest house. Um, so yeah, I would say that's the biggest thing. Yeah. And the only thing I would add to that is, um, keeping a really firm grasp on your why, like why it is that we're doing it. Basically, we, like you, Dave, we believe that everything that we have, financial abilities, material possessions, all those are things that have been given to us.

They aren't things that we've earned. And so being good stewards and being responsible stewards of the resources God has given us, starting off to build a foundation to be able to do that is what we were really, really excited about. What a sharp couple. These guys are fun. I know. What a great, man, this is awesome. Was it hard to see your friends doing all the things, having all the things, and you

guys were like, nope, we're trying to pay off this debt? At times, it would definitely be difficult. So with my job in the military, I travel quite a bit. And Dave, you are probably familiar with this. The military is not the best when it comes to financial responsibility. Um, telling a military coworker that you don't have an Amex card is kind of like saying I'm from outer space and I'm here to help you. Um, and, uh, so anytime we would travel, it's like, Hey, we're going to Centurion lounge. And I'd be like, uh, sorry, I can't, can't get into that. I'd be like, well, why not? Do you lose your card? Um, and I'd be like, hey, we're going to Centurion Lounge. And I'd be like, sorry, I can't get into that. They'd be like, well, why not? Do you lose your card?

And I'd be like, well, I don't have one. And then I would go spend the time at the terminal eating my leftover food rather than going to all the restaurants. So doing that over and over and over again does eventually wear on you. But you also begin to embrace it as well. Yeah. You start to take it on as a brand. That's right. I'll take no payments as a flex over having an A.

I agree with that. I will say the card is metal, which is kind of cool, but that's all right. I like that. A little tougher to cut up. That is true. I have to get the tin snips out. I had to do that one time. I had the big old scissors, and that guy brings me that metal card up,

and I'm like, oh, man, making this hard. And chainsaw. I think Amex probably did that because of me. Hey, you should definitely take credit for that. They're trying to keep me from cutting them up. I believe it. I'm sure it was that. As a matter of fact, I'm positive, yeah.

You guys are awesome. I'm so proud of you. Thank you. Well done. Who are your biggest cheerleaders? Yeah, so we have been really blessed to just have a lot of family and friends that have been really supportive of us and the lifestyle that we've chosen to live. A couple specifics that stand out. We have our friends, Ryan and Brittany here. And they're also Dave

Ramsey plan holders. They're holding our kids or our kid and their kid. And then also David's younger brother, Steven, is also a big Ramsey follower. And we've talked to both couples just about our journey. And Stephen actually and his wife, Jess, they lead financial peace classes at their church. So they're very invested in good resources to chat with. So, yeah. Very cool. Very cool. Well, very well done, you guys.

Again, very proud of you. And you're in a rare situation. That's why we call you weird. Just very, very well done. Well, we've got a copy of Baby Steps Millionaires for you. That is the next chapter in your story for sure. That's where you're headed. We're also going to give you a card for a one-year membership to Ramsey Plus,

which puts you into Financial Peace University and into EveryDollar for a year. If you guys don't want to use it, it's a great thing to give away to get somebody else started. Same thing with the Total Money Makeover. Absolutely. And the gift card for this and one-year membership to that, plus the Total Money Makeover, plus the Baby Steps Millionaire. All right. David and Sarah, bring up your little guy here.

Nathaniel is with us. $187,000 paid off in two years. Count it down. Let's hear a debt-free scream. Three, two, one. We're debt-free. We're debt-free. That's fun.

I love it. I love it. This is The Ramsey personality, is my co-host today. Open phones at 888-825-5225. This is The Ramsey Show. Manuel is with us in San Antonio. Hey, Manuel, how are you? I'm doing good, Dave, and yourself?

Better than I deserve. How can we help? Excellent. Okay, here's the scenario. My daughter, who is going to graduate later on this month from high school, she has the opportunity to attend either one of two universities, University A for $88,000 total and University B for a total of $208,000. She wants to go, of course, to University B. How do we explain and or convince her that

University A is the better option? Okay. What is she studying? She wants to study to become either a biology or chemistry major and then pursue a medical degree okay um do either one of these you have any actual data that more people get into med school from either one of these universities? It's about the same. You have actual data, or that's a guess? No, no, no. We looked at the acceptance rates into medical schools from both of these universities. Okay. So her attending the more expensive does not help her get into med school?

It doesn't increase the probability, no. Okay. What's her reasoning for going to the more expensive school? It's away from home. Hmm. There it is. There's the underlying issue. So how far away from home is this?

So wait a minute. Wait a minute. So the first thing I would say to her is, okay, if you're going to be a medical doctor, you have to use critical thinking skills. Okay? Right. And so basically what we're saying is is these two schools have the same acceptance rate and so you are not paying a dime more to go to the uh to for

education your only reasoning is you want to spend an extra $140,000 or whatever this comes out, over $100,000. You want to spend an extra $100,000 to live away from home. Good point. Yeah. And so this is not a discussion about education. This is a discussion of do I – am I willing to pay for you to live away from home? The answer is no.

Yeah, not am I willing to pay for – you know, if you went out on your own and just weren't going to school and you graduated from college or high school and went and got a job and went out on your own, I'm not paying for that. That's like your job because you're like being an adult and stuff, right? Right. And so if there's another good reason, I mean we can discuss it. I don't mind asking a series of questions. I assume you're paying for this. Yes, we are paying for this.

Okay. How much money do you have saved up? Well, we have enough saved up for University A at $88,000, but we do not have enough saved up to go the extra $120,000 to the $208,000. Yeah, so you can cash flow University A. Yes. Okay. Yes, yes, yes. The answer to. Yeah, so you can cash flow University A. Yes. Okay. Yes, yes, yes.

The answer to that is yes, but not cash flow University B. There have to be other options there. Okay. Well, there's yet another reason. I don't want you to student loan debt. Exactly. Does she have any skin in the game here? It feels like she has no concept of how much money this actually is at 18.

Initially, I thought she had the concept, but recently, after our discussion, I don't think she does because she insists on wanting to go to University B, and it's like, well, we can't afford it. And it's like that just caused a shutdown in the conversation. Well, we can't afford it. But also, I think we just need to talk through the reasoning of what's going on here, okay? Right. I love you, and I want what's best for you a i don't want you in debt because it's not best for you b i want you to be able to live your dream i'm not trying to

tell you to not live your dream in terms of going to med school but there's no difference between these two i'm going to med school and um and so really all we're paying for is for you to live away from home and we don't have the money for that and so honey i'm just sorry as i can be it's just a horrible it's a horrible thing to be you you know you're going to get your college paid for but not the one you wanted to go to and you're not going to get to move away from home in order to do that and so unless you figure out a way to pay for it if you figure out a way to pay for it, if you figure out a way to pay for it, and by the way, if you paying for it is you taking out student loans,

I'm not going to give you the $88,000. I'm not going to subsidize your stupidity. Oh, good point. I didn't even think about it to approach it from that perspective. Yeah, and so, you know, and at the end of the day, I love you. I've got your best interest at heart.

I have $100,000 almost laying here to help you do this, to live your dream, and I'm willing to put all of that towards you because you're my daughter. I love you more than life itself, but I'm not going to participate in things that don't bring you good results. Now, if the other school had an acceptance rate that was 5X, school B did of school A, then I'm going to start scratching around trying to find scholarships. I'm going to have her work an extra job.

I'm going to have you work an extra job. If we can get her into med school 5x times, five times more likely, then we can talk about trying to make that happen. But so far, I don't hear any value for school B in what you've presented to us other than she gets to live away from home. Whoop-de-doop-dee. Yeah. Now, for more information, she's a really smart cookie.

I would hope she is if she's trying to get into med school. Exactly. And she's gotten really smart cookie, and she's gotten scholarships. I would hope she is if she's trying to get into med school. Exactly. And she's gotten tons of scholarships, and that's why these numbers are, quote, unquote, as low as they are. But, yeah. This is net of scholarships. Yes. Wow. Exactly.

Wow. Exactly. Exactly. So it's incredible what she's accomplished. These are both expensive schools, exactly. So it's incredible what she's accomplished. These are both expensive schools then. Yes, sir, they are. Yeah. They are.

But, again, we're willing to go with school A because we got the cash flow for it. Can't go to school B. Like you said, we're not going to fund her to live away from home. Yeah. And, honey, if you'll go out in the driveway, you will notice that there aren't two Bentleys sitting there because your mom and I can't afford them. Right.

No. And you will notice your mom does not have a $400,000 diamond on her hand because we can't afford it. Right. And so, you know, money is finite. We're not in Congress. Good point, sir. You know, and so, I mean, this is just a values lesson.

And, you know, but I think underneath all of this, and I would really hesitate to play the card, but underneath all of this at the end of the day is um i i love you so much that i'm just going to make you do what's smart for you because it's my money okay and you know i really wouldn't say that if i could possibly avoid it instead i would try to reason i would try to persuade i would ask questions i would talk it through get her to come to the conclusion i'm really just paying to live away from home because that's really the net net of what we're talking about here and uh we want you to live this dream but if you live your dream in an improper way it becomes a nightmare yeah and i'm not going to any more than i'm going to let you spend this money on

cocaine i'm also not going to let you spend this money on something else that brings you harm right and reminder that med school is still on the horizon which is a whole nother beast to tackle financially yeah exactly financially there's another beast that we're gonna have to tackle together four years down the road and so we gotta have a long-term vision here we have to have a long-term game plan and part of this is an immaturity going well i just want to live away from home well that's not worth 120 000 i'm sorry yeah yeah i'll tell you what uh hang on i'm gonna have kelly pick up we're gonna give you a promo code i think we've got them for the borrowed future documentary do we okay or we can get you one i think if not and you guys watch that together with her you your wife and her watch that watch the documentary it will blow her mind and yours it's all about the epic failure of the student loan crisis there's

a doc in there that's almost a million dollars in debt and orthodontist in the documentary and he's crying it'll make you cry when you watch it. It's unbelievable. Yeah, Borrowed Future just won number one Webby Award. Yeah, long-form documentary. Very cool. This is The Ramsey Show. Do you love a good day, friends? Want to see the latest Ramsey Show videos going viral? Check out your favorite moments from The Ramsey Show on YouTube.

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