The Ramsey Show - App - Insight on Underperforming International Investment Funds (Hour 3)

Episode Date: November 14, 2018

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Live from the headquarters of Ramsey Solutions, it's the Dave 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. Thank you for joining us, America. We are glad you are here. Open phones at 888-825-5225. That's 888-825-5225. Troy is with us in Fort Worth, Texas.

Hi, Troy. How are you? I'm doing good, Dave. Thanks for asking. Sure. What's up? So me and my wife are wanting to help out a family member that was recently diagnosed with cancer. And so we want to help them out financially, but we don't want our names attached to it.

So I just was trying to get some ideas on how to go about doing that. Do they attend a church? Yes, I believe so. Contact the church and ask the church if you can give the church some money for them to give to them. Okay, I didn't think about that. The churches have to be very careful

about what's called designated giving, and they can't do too much of it. But most of the time in a small congregation, with the amount of money we're probably talking about here, it shouldn't be a big deal. How much money are you talking about giving them? At most, I would say $500. Okay.

Yeah, that's not a problem then for the church. And just contact their pastor or someone in the staff at their local church and say, hey, I need to get this money to them without them knowing it came from me. Can we make a donation to you guys? And you say, hey, someone heard about your situation, and God said for us to take care of this and give you 500 bucks. And so you can run it through that way. You know, the other option, of course, you can always leave $500 cash in the mailbox, right? But, I mean, there's just a little more risk to that.

Sure. Okay. So, no, that's great that you're able to do that and that you care enough about them to do that. That's generous. Dave is with us in Tucson, Arizona. Hi, Dave. How are you? Mr. Ramsey, I'm doing great. It's an honor to speak with you. Thank you. You too. What's up? Okay. The question is this. Before I met you, we took a 30-year mortgage, and I have $110,000 left on that for 24 years. But I also have a second mortgage with three years left, and that balance is at $22,000. My question is, should I just roll this into a 15-year fixed rate at this point,

or should I pay off that second and then try to work at knocking down that first mortgage? What's your interest rate on the first? The first one is 4.4. Okay. Well, that's about market right now. uh the 22 is going to be paid off in three years or less anyway what's your household income uh household income is 125 000 okay cool well what we the rule of thumb we use on second mortgages is if they are less than half your annual income which this is then it would actually be a baby step two item you would pay it off as if it was a car debt or a credit card debt and uh and just go ahead and knock it out in other words i would accelerate

that three years by putting it in your debt snowball if you were if you don't have any other debt then just hammer it hard and then the first mortgage you can pay off a first mortgage you don't have to refinance a 30 to pay it off in 15 you just pay the extra as if it was a 15 and it'll pay off in 15 okay great yeah because we're in baby step two the only thing we have is a twelve thousand dollar balance on a car and a five thousand dollar credit card and those two are in the baby step so we'll just jump to the second mortgage and drop the second mortgage down to number three on your debt snowball. And then don't worry about the, just pay your regular mortgage payment for right now on the 110. You're going to come back around to edit baby step six a little bit anyway.

And you can start chunking extra on it then. Okay, awesome. Thank you very much, sir. I really appreciate your time. Hey, thanks for the call. Sid's in Sarasota, Florida. Hi, Sid. How are you? Good. Hanging in for the call. Sid's in Sarasota, Florida. Hi, Sid. How are you?

Good. Hanging in there. Good. How can I help? I'm going to try and condense this as best I can. We've taken your financial peace course through a church group here, and we've been done everything, and we're debt-free. We've been debt-free for quite a period of time. We've got a, we sold our place up north,

and we're going to sell our place here if this is a prudent thing to do. What we want to do is we're looking at a place that's around $450 to $500, and there's two or three places we're looking at right now. We're trying to see if it's, like I said, prudent to do. Debt-free, we owe nothing on anything, and this is the right thing to do. Okay. I'm sorry. You're going back in debt?

Is that what you're telling me? Well, yeah. Okay. So what were the two properties that you're going to sell bring? Right around $450,000. And what are you going to buy? We're looking at something around $500,000 at the most. Okay, and what's your household income?

It can be whatever I want. Right now it's around $80,000. We're both retired, and we're both $70,000. I don't know if that makes a difference or not. Okay, and how much do you have in your nest egg? $800. Well, just pull enough out of it and pay cash for the house, man. We thought about doing that also.

Sure. We'd also like to take and put it on a mortgage. Is that a pretty thing? No, I would never take out a mortgage at 70 years old when you have $800,000 in your nest egg. Why would you do that? No, no, no. I mean, you went through financial peace. You knew I was going to tell you not to borrow

money, didn't you? Yeah, I knew that. I wanted to make sure. Yeah, for sure. For sure. Pay cash for this as you go. And yeah, sell the two properties, buy the other one, and make up the difference out of your nest egg. You're millionaires, by the way. Well done, Sid. Well, yeah, we're very conservative.

You've done a great job. How much of this did you inherit? Did you get money because you inherited it? No. No, this is all stuff we've done over the years. And what's the 800, 401Ks? Well, it's a variety of things. We took and put our cash account from what we got in our northern house,

and everything else is all buried. That seems the male part of me is more aggressive, and my wife is less aggressive. So that's kind of how the accounts go. I don't know what the accounts are. She knows. She's not with me right now, but I'm just going to ask. Okay. I'm just asking it for somebody out there that's 25 years old.

I'm talking to a 70-year-old millionaire. I'm trying to tell them how to do it. What would you tell them to do? Be careful, be prudent, and don't do a whole lot with it. That's about all I can tell you. I got you. We've been very conservative, is what we've both been. Okay.

And you're a big savers, is what you're telling me. Yeah, we didn't do a lot of vacations. My son and daughter have done a lot of vacations, and it's more power to them, and that's fine. We're okay with that. We don't care. My wife's had cancer, so it's kind of put a cramp in things. Gotcha. I understand.

Yep, I think you buy the property. I think you're ready to do it, and you just pay cash for it, sir. That's what you do. Hey, thank you for calling in. You've done well, sir. Very well. Proud of you. This is the Dave Ramsey Show. Why in the world would you trust some random guy in a cube when getting your mortgage?

Do you really think he cares about your long-term money goals? Well, he doesn't. Those companies care about getting you into whatever home loan program they're pushing that week. When it comes to ordering a cheeseburger, the meal deal works fine. But let's get real, people. We're talking about the largest investment you'll probably ever make, so don't be naive and trust an order taker who pressures you into a pre-packaged loan. My friends at Churchill Mortgage have been helping my listeners for over 25 years. Call Churchill Mortgage and get custom solutions from an expert within 10 minutes. It's simple.

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Redwood, Tennessee 37027. Brian is with us in Ann Arbor, Michigan. Hey, Brian, how are you? Good, sir. How are you? Better than I deserve. What's up? I've got an investment question for you. I've been looking at my 401k and I've noticed that the international funds have been underperforming. Would I be out of line to take those out of my portfolio? You know, I just asked the same question about 12 months ago, because for 26 years or 27 years here on the air i've said four types of mutual funds growth growth and income aggressive growth and international and for about a decade

the internationals have trailed everything else pretty dramatically and that's what you're seeing right absolutely yeah and i started looking at the same thing. And what I did is I pulled a couple of our SmartVestor pros in who have the software to run hypotheticals on different things. I said, let's look at this. What if we pulled that out and was one way we ran it? What if we left it in? It was another way we ran it. What would the results be if we go back, I don't know, 40 years?

Let's go back 40 years and say for the last 40 years, we run it without because we've had 10 years of really bad performance there. So let's run it 40 years with the normal four that we're talking about, and let's run it 40 years without. And let's use two or three different funds and run it several different ways. And I even said, because some of the real estate investment trusts, the REITs, a lot of people ask me about that. And there's some of those that are outperforming the S&P. And I thought, well, maybe we can take that out. Maybe we can take out the international and put in the REIT, you know, and so forth. And we actually did that and went back. And here's what's interesting.

The market cycles that we've not experienced, this type of market cycles in the last decade, and that's why this is highlighting, but when you go back past 10 years and you take it out, the foreign funds, the international funds funds are inverse of the other funds, meaning that when an aggressive, for instance, tanks, in other decades past, the international shoots up. And so what ended up happening was running it out 40 years if you pulled international out you lowered the portfolio returns pretty substantially almost 10 15 and so uh it's like it's overdue for the international

to be the saving grace that it hasn't been in 10 years you see what i'm saying now i don't know what the future holds but the only way you the only way I know how to predict the future is to do forecasting based on long track records in the past. All of that to say, I left it in. Okay. But not because of what it's done in the last 10 years. I completely agree with your question. As a matter of fact, it's a brilliant question, I think.

I think it's so brilliant that I was asking the same question. But you see how I – you understand how we did that analysis and how the conclusion came? Yes, so for now, hang on to them. Yeah, I would hang on because if the market does one of those dipsy doodles that it did, say, about 18 years ago as an example, okay, right around 2000. When the market did a little fruit basket turnover kind of thing, the international was the one that saved the portfolio's returns because it comes up while the others were down. It runs inverse. It runs the opposite of the rest of them.

And if you don't have that, then the whole thing just goes down and there's nothing going up to offset it. The power of diversification is really what it comes down to. So I would leave it in there. I've left it in there. I've left it in the suggestion, and I've left it in my personal portfolio for that reason. But I was ready to not only pull it out of my personal portfolio. I was so disgusted with it.

I was ready to change advice I've given for a quarter of a century based on how bad they've been doing. But this analysis said don't do that, and so I didn't. And I'm keeping, and I don't do with my personal stuff different than you guys do, different than I don't do one thing and tell you all to do something else. So I tell you all to do what I do. And if I'm not willing to do it, I shouldn't tell you to do it. So that's where this comes from. Good question.

Bob's in South Bend, Indiana. Hey, Bob, how are you? Just fine, sir. How are you doing? Better than I deserve. What's up? My wife and I were in Baby Step 2. We bought our house. We just heard about you about six months ago. We just bought our house three years

ago, and we had a two-year home warranty with it. And they just contacted us again on, oh, we wanted to renew our warranty. I want to know what you thought about that. No. No? Nope. Let me tell you why.

Let's walk through it, okay? Okay. You and I are going to open a home warranty business, okay? If we're going to do that, we have to decide what to charge for our home warranty the way we figure that out is we figure out how much we're going to have to pay out in repairs and then we've got to make a profit above that follow me right and so we study a thousand houses like bob has the age of your house and the items that we're covering with the warranty. For instance, heating and air, or water heater, or something like that, right?

And we say, out of 1,000 houses, what's the actual number of them that we have to write a check for something breaking, and how big is the check? Does that make sense? Yes. And so we take that total and divide it by 1,000, and that's our cost of providing a warranty to 1,000 people. Our cost per house is the amount of checks we write out divided by 1,000. Does that make sense?

Yes, it does. Okay. And so it's a statistical analysis of our actual cost. Here's what's interesting. On home warranties and auto warranties that are purchased, extended warranties, and even warranties on stuff like electronics, the typical, if you pay $1,000 for the warranty, on average, the cost that that warranty company is actually anticipating is 12% of that, $120. That's the actual risk statistically that you're taking

or that you transfer to the home warranty company if you buy the warranty. So you give them $1,000, and on average it costs them $120 per house. Okay? That make sense? So what's the rest of that go to? What's that other money go to? Overhead. They have to buy secretaries and salesmen and ads and people to call you to try to get you to renew.

And, you know, they mailed you something. They had cost in that. And they have to pay the rent on the building that they operate their business in. And the rest of its profit so from your perspective on average for every thousand dollars you would have spent on this you're actually taking only about 120 in risk that one you should self-insure through with your emergency fund and put that other $880 in your pocket. Is that logical? Yes.

Self-insure through it. Don't buy extended warranties ever. And that's the reason. They're not evil. They just make a lot of money. It's very profitable for them. On average, the hard cost of extended warranties is 12%, folks. The actual cost of goods sold.

And the rest of it is overhead and profit and marketing costs. They pay the realtor to sell you the thing. They pay the auto dealer to sell you that. The auto dealer makes a lot of money on the sale of an extended warranty. They make good money on that. About half of that money goes to that auto dealer when you're buying that marketing cost it all goes out marketing cost it's not all profit but man it's not covering you that's what it comes down to so self-insure through things where people try to get you to purchase warranties and always have your emergency fund of three to six months of expenses in place. And that puts you in place to cover something that breaks at the house.

But you don't make money on insurance. Insurance companies make money on insurance. So should you never buy insurance? No, you buy insurance for things you can't afford to cover, like life insurance, health insurance, car and homeowner's insurance. Those are good kinds of insurance. But it's the same methodology exactly, except the spread is not as big. They don't have the kind of margin in those types of insurance that they do in these gimmick things and like they do in extended warranties. But things you can self-insure through, you should.

Things you can't afford to, you transfer the risk by allowing the insurance company to make a profit on you and buying some insurance. So we tell you to buy certain kinds of insurance, other kinds of stuff you cover. Good question, Bob. Really good question. This is the Dave Ramsey Show. One question I get asked all the time is, do I need life insurance? Listen, the whole point of life insurance is to replace your income for someone who counts on you. So if you have a spouse or you have kids, yes, you need term life insurance. It's the only way to protect them until you're out of debt and have built up your wealth. You're only digging a deeper hole if you waste money on cash value plans since it robs you of

the ability to make real progress. And that's why I send you to Zander Insurance, and I have for 20 years. That's where I get all my insurance, and they only offer the plans I recommend. It is not expensive. It's not complicated. And Zander will be there as your guide every step of the way. Visit Zander.com or call 800-356-4282. You need to get this taken care of. I can give you the advice and I can tell you where to go, but it's really up to you to take that important step to get your family protected.

That's Zander.com or 800-356-4282 Up next is Andrea in Chicago. It says on my screen, you're dead free, kiddo. Way to go. Yay, thank you. Love it. How much have you paid off? $50,000, Dave. Cool.

How long did this take? About 12 months. Wow. And your income during that time range? Yeah, so my income was around $52,000. I did have some leftover savings from prior to starting my job. And right now I'm at about $60,000. All right. Very good. And how much savings did you have to throw at the $50,000 in debt? Approximately maybe $4,000 I still have leftover. Okay. so you make $52,000, but you paid off $46,000 in 12 months.

How did you do that? That doesn't make sense. Well, I mean, it's a total of $50,000, but I started my new job about a couple months after graduating from nursing school, so I was able to start having an income. And then after 12 months from graduating and, I mean, sorry, after 12 months of starting to pay down my debts, and then afterward I was able to complete paying down the $50,000.

So it was about six months after I graduated that I started paying them down. Okay. Well done. Okay. Great job. So it was all student loans? Yeah, all student loans. And you're a nurse?

Yes. Way to go. Awesome. How's it feel to have no debt? Oh, it's fantastic, Dave. I mean, because you really laid into this. You did nothing but get out of debt. That's all you did.

Pretty much. I was just devoted to just getting that down and getting it out of the way. What got you so fired up? I mean, just getting inspired by my friends, my family. I actually was able to attend one of the Financial Peace University classes in the local area, and that just really inspired me just to get my debt out of the way, and many people motivated me. My boyfriend took me to one of the classes that he attended, and I just wanted to get out of the way and provide quality care for my patients.

And in order to provide care for my patients, I wanted to also take care of myself too. There you go. Well done. How old are you? I'm 27. Wow. Way to go! Touch to go touchdown i mean you can do anything you can do anything you want to do now yeah absolutely and you know uh dave i'm just fortunate enough that i was able to just stay at home um my parents were able to um you know just

give provide me shelter and not make me pay any rent. And, you know, I'm very fortunate with that, too. Okay, that makes the numbers make a little more sense, because I was wondering how you were eating and paying rent out of this. Okay, that makes sense. All right. Cool, cool. So now you can go out on your own and do whatever you want to do, right?

Well, yeah, and right now I'm working on baby step number three, is just saving up for um three to six months of living expenses and possibly saving up for a car and um you know i currently drive a used car but i would like to get a new car eventually too good job good job i love it well very well done what do you tell people the secret to getting out of debt is um i mean just staying motivated and you know if you can pay if you can pay it down if you can absolutely do it i mean just go for it that's what i tell everybody like just get it done get it out of the way yeah because i mean you didn't do

anything else that's all you did you you you did not spend any money anywhere you didn't have any money to spend it all went on this debt, right? Absolutely. Absolutely. Complete focus. Yeah, that's incredible. Very, very well done. Well, we got a copy of Chris Hogan's book for you, Retire Inspired. That's a number one bestseller. And that's the next chapter in your story to get that baby step three finished, get that car,

and then move on to wealth building and be an everyday millionaire and outrageously generous as you go along. And I think that's going to happen for you. I'm proud of you. Well done. Thank you, Dave. Thank you. Great job. All right, Andrea. Chicago, Illinois, $50,000 paid off in 12 months, making $52,000.

Count it down. Let's hear a debt-free scream. Three, two, one. I'm debt-free. Woo! This is how you do it right here. I love it. I love it.

I love it. Very cool. Very cool. Excellent job. Open phones at 888-825-5225. Edgar is with us in San Antonio. Hi, Edgar. How are you? Pretty good. How are you doing, Dave? Better than I deserve.

I'm heading your way. We're doing an event there tomorrow night. Are you really? Yeah, we're going to have one of our Smart Money events there tomorrow night. How can I help today? Yeah, I'm a new listener, actually, and I just recently became debt free about two weeks ago wow uh and uh we have some money saved up me and my wife and we

were wanting to open up a small business but we don't know if that's the uh the right way to go yet with this money that we have okay what kind of kind of small business? It's a small gym. We want to open up a small gym. A small gym. Okay. And how much money do you have saved? We have about 16 or 17 saved up. And you can do it for that?

Yeah. Yeah, with the equipment and some of the licensing and whatnot for the size of business that we want to open up. Do you have any emergency fund or rainy day fund in addition to that money? It would just be the $16,000. Okay. All right. And what's your household income now?

It varies, but I make anywhere from $50,000, and I can make a little bit more because I do a lot of side business as far as the job that I do. Okay. All right. I would never tell you to use your rainy day fund as an investment because as soon as you do it, it might rain. Okay? Okay.

And what that means is I'd like for you to have enough to have a rainy day fund and then have enough above that to open the gym. And, you know, so probably about $10,000 is your rainy day fund, something like that. And so that's about what you are short. If it takes the whole 16 to open the gym, and I'm sure it does, doesn't it? Yeah. Yeah, it takes a little bit less than $16,000 with the equipment and the licensing and whatnot.

Okay. What do you think the budget is to open the gym? We're hoping no more than $16,000. That's where we're at. Okay, so that's your budget is $16,000. Okay, then I'd like for you to save $10,000 before you do it. Okay. And then you've got $10,000 left in the bank just for a rainy day that you never touch.

And that's your emergency fund. Then you've got the additional $16,000 to do your investing with. Okay. And that starts your business, and I would do the business. I think it's a great idea. And I think it's obviously something you guys are passionate about, something you care about, and you probably see a way that you're going to make a profit on that $16,000 investment very quickly.

And I have a feeling that you've got the ability to just jack up and go get that $10,000 right quick with some extra work and going crazy for a short period of time, and then like in the spring, you'll be able to open the gym. And it'll probably take you almost that long to get everything figured out anyway. So, but yeah, make sure you have $10,000 set aside in addition to the money you need to open the gym, and then you're ready to go.

So, good question. Thank you for joining us. Open phones at 888-825-5225. It changes everything in business when you pay cash for stuff. And you have no debt at all. It changes everything. You make different business decisions. You buy different things, you invest differently.

When he's paying cash out of that $16,000 of real money, not borrowed money, for that equipment, he's picking different equipment than you would pick with borrowed money. He's going to get that gem open, and then he's going to improve on the equipment and improve on the offerings inside the gym with profits that the gym makes. But he's not going to start out with brand new everything and an SBA loan on his house because that's the only way you can do a business. See, he's doing it right. He's doing it right. He's going to succeed.

That's the way you're supposed to do this. And the ones that stay open, they're the ones that do it this way. This is the Dave Ramsey Show. Thank you. Our scripture of the day, 1 John 5.14 This is the confidence we have in approaching God That if we ask anything according to His will, He hears us Stephen Covey said, our character is basically a composite of our habits That if we ask anything according to his will, he hears us. Stephen Covey said,

Our character is basically a composite of our habits, because they are consistent, often unconscious patterns. They constantly, daily express our character. That's what we always say when people say something like, Does the audio match the video? Does what you say you are, is it reflected in how you behave? It affects money too, doesn't it? Because with money, we're talking about behavior.

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Thanks for taking my call. Sure, what's up? Okay, so I had a rough start as far as my credit is concerned. My mom stole my identity before I even turned 18. So I never even had any type of financial education whatsoever. And I just recently started listening to your show. I feel a little overwhelmed with how much debt I have at my age. And again, listening to your show, I don't think I have the right degree to make a whole lot of money. So I realized that and I went to real estate school. But I failed the test twice, so I have to take it one more time in order to kind of change my income levels. So I guess my question is, I only make about $30,000 right now. And I have over $100,000 in debt. Most of it is student loans.

It's $105,000 in student loans. I know that's a lot and I'm not a doctor. I have a degree in psychology. But again, it's a lot of information that I didn't have when I was making decisions. I'm the first one in my family to go to college, so I didn't have any education on student loans. I took out as many as I could so that I could survive while I was in college because I had no financial support from family and friends. So it was just a terrible cycle financially because of not having information

and then still not making enough money. Well, you've analyzed how you got here very accurately. You're very self-aware, and that's really great news for your future. How old are you, 25? No, I wish. And I get that a lot in person, too. People think I'm like 21, but I'm actually 39. I'll be 40 in June. Okay.

And when did you complete your degree in psychology? 2007. I've been working a lot of customer service call center jobs since then. So you've never really gotten into the field of your degree then? No, because originally I wanted to be a psychologist, but then I did a couple of internships, and the field is so dark for my personality that I don't think I'm strong enough to handle other people's problems in that capacity. I'd probably take the problems

home with me and end up committing suicide after five years, and I don't want to do that. I don't think to do that. I don't think that's a plan. I agree with you. So you're single? No. You're single? Yes.

Okay. You have $105,000 in student loan debt. Right. Okay. All right. Well, I mean, I think you've... I have $11,000 from a reconsessed vehicle from four years ago, $5,000 from an apartment that I was trying to stay in, but it was overpriced for me, and like $200 or $300 in a couple of medical bills.

Okay, so you've got some old bad debt, too. So you've got some old bad debt from the repo and the eviction and all that kind of stuff. Yep. And so here's what i always look at i use big numbers here when i'm on the air meaning i don't care about the rounding issues and all that kind of stuff i look at what i call a shovel to hole ratio so you're in a hundred and five thousand really about a hundred and fifteen thousand dollars worth of debt

including everything versus that's the hole you're in. The shovel is your income, is a $30,000 income. And so by the time you eat and pay rent and pay lights and just basic existence, okay, you don't have a ton of wiggle room. So you have a small shovel. I don't have any wiggle room. You have a small shovel and a large hole. And you've already recognized that because you're already working on your career path and saying, what can I do to make more money?

You're already thinking that way, which is how you ought to be thinking. So that's the route. So I think the first thing is make sure we don't make any more errors, any more borrowing, any more messes, and make sure you live on what you have coming in. That's your first thing. Okay? And then the next thing is as we can get income up or squeeze any drops out of the existing income, let's start working these debts down and just start beating on them. Obviously, if you could go from $30,000 to $60,000, that entire $30,000 increase would be able to go on this debt,

divided into $100,000, puts you three years out of debt. Wow. See what I'm doing? That sounds really doable. Yeah. Absolutely. From my perspective, I'm like, it's going to take me 10 years to get out of debt. wow see what i'm doing that sounds really doable yeah absolutely yeah so that's it from my perspective i'm like it's going to take me 10 years to get out of debt well it is if you don't get your income up right but the good news is life is not a a snapshot it's a film strip

the snapshot is today and the snapshot sucks but it's a film strip meaning it's ever moving and you're looking out into the future you're saying i got to change some stuff i'm going to get the real estate business i'm going to do the x or y or z i'm going to do something that doesn't pay thirty thousand dollars a year and because i because a because i want a good life but b the first thing i'm going to do with that money when i get some more is knock these debts out so that i can have a good life so you're right on track. I think you're going to do fine.

And what you'll hear as you listen to the debt snowball or the debt-free screams here on the air, you'll often hear people where their incomes went up dramatically. The first hour I had a couple that was six kids that started out making $60,000 when they started their debt snowball four years and three months ago. Now they make $200,000 up from 60 the second hour and a couple that paid off 65 000 and their income during the time they were getting out of debt went from 50 to 90 almost double and so but that's over a period of years not months and so but as their income went up, they kept their lifestyle at the original and throw all the extra at the debt like you and I were just talking about. So I think that's where you're going. I think that's what you're going to see happen in your life.

I can see it real clearly. And I'm here to help you. I want you to go through Financial Peace University as my guest. It's a one year membership. There's nine lessons that you go to the local Peace University as my guest. It's a one-year membership. There's nine lessons that you go to the local church and take the lessons, plus all the stuff is online. The audio, the video, everything is online. And you've got the Every Dollar Plus program as well, the one-year membership to that included. And I'm going to give you all of that,

because I really think you need a better future than you got today. And I really think you're heading that way, and I want to be part of your story. So you hold on, and Kelly's going to pick up. And you call me back as you're working through this if you need help. But, Chanel, the answer is making more money. That is the answer. And you already had the answer before you called me, by the way. That's not my answer. You already knew that. That is the answer. And you already had the answer before you called me, by the way. That's not my answer.

You already knew that. Thanks for the call. That puts this hour of the Dave Ramsey Show in the books. We'll be back with you before you know it. In the meantime, remember, there is ultimately only one way to financial peace, and that's to walk daily with the Prince of Peace, Christ Jesus. Hey guys, this is James Childs, producer of The Dave Ramsey Show. I'm excited to announce that we're now carried on 600 radio stations across the country.

To find one near you, head to DaveRamsey.com slash show.