The Ramsey Show - App - It Takes a Lot of Money to Support YOLO (Hour 1)

Episode Date: May 12, 2020

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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. Anthony O'Neill, Ramsey personality and number one best-selling author of the book debt free degree is my co-host today our phone number is triple eight eight two five five two two five that's triple eight eight two five five two two five welcome back anthony hey dave thanks for having me back i'm loving this weather man so uh you post to youtube about some girl dumping you because you wouldn't take her to the restaurant she wanted to go to because it wasn't in your budget. It's gone viral, and you are now America's cheapest single man.

Oh, man, Dave. You are a cheapskate, aren't you? Dave, I'm not cheap. Come on, Dave. You got to be on my side on this thing, man. I am. It's just easy to make fun of. But I mean, it's funny how how how the social media world is really responding to this video is shocking, which lets me know I have a lot of work to do, especially young millennials,

because the average young lady that's watching this video, they're saying that I'm cheap because what they're saying is if he really liked her, he would have spent five hundred dollars on that dinner. And I was like, no. Oh, yeah. The second date, Dave, would have been the restaurant. on that dinner and i was like no wow yeah the second date dave would have been the restaurant i gotta tell you i don't know what girl's worth that five hundred dollars yes on the second date when i went to the restaurant gotta be kidding me yes it was about two hundred dollars per plate per person when you do, it was like a five-course meal.

Oh, so this is a fine dining affair. Yes, sir. Oh, the girl wanted you to take to a specific restaurant, and it was a $500. Yes. And people were saying you should have done that. I should have done that on the second date. And all I said in the video was, hey, it wasn't in my budget for this month, but I will add it next month. So I didn't say no.

I just said, hey, I'll do some maneuvering around in my budget to do it the following month but dave when i told her that she didn't even respond to me she just ghosted me dumped you yes but a one date dump one date dump but you wouldn't pony up for the 500 bucks exactly but here's the thing when she's seeing me on this national show because you know we do national media right this girl's shallow yeah then she's seeing She's like, oh, he do got money. And so she responded to me. You're cheap, but she's shallow. There you go, Dave.

Thank you. I got another word for it, but I don't want to say it on your show. I respect your show. If it was on my show, I'd say something else. But it's good. But here's the thing I do love, Dave. It's the guys are saying that's a different perspective. And I should honestly look at that and have a budget for that as well. You know, all cutting up and sarcasm aside, the truth is that it's really a great filter by which you determine who's eligible to go into a relationship with.

Because you don't want to go into a relationship with a princess. You have a long life keeping her happy. A long life i mean all you're gonna do is be working yeah that's it dave because there's no she's been like she's in congress man yeah uh a girl that demands a 500 dinner as the second date or she ghosts you i mean my god that's straight up but as a father though dave if your daughter came home and said that hey this god told me we can't do this particular thing because he's on a budget. I would say don't be a princess. There you go.

Thank you. Don't be a princess. You know, if the guys that makes you that qualifies, you're like a real man. Yeah. You're not a little wuss being pushed around by some princess that wants a five hundred dollar dinner. I mean, wow. Five hundred dollars. I don't even know if i will even honestly like after i

thought about it i think that the budget saved me dave because i don't think i should be paying five hundred dollars for a dinner with anyone i'm dating i should be spending that kind of money on my wife or maybe my fiancee but a girlfriend someone i'm getting to know five hundred dollars that's a lot of money on some food. Yeah, we were married many, many years before that happened. Many, many, many years. However, Sharon did marry a cheap redneck, so there you go. Oh, cheap. Cheap, man.

Cheap, cheap. My most expensive meal was with you, man. You taught me that. And I paid for it. You sure did. Because you're cheap. Now we figure how it works all right hey that's fun though that uh it creates a conversation among the young singles uh the your age group um millennials to just say hey you know really i mean do you have to be out of debt today somebody no? No. But, you know, it's part of being grown up to say I have some level of discipline.

Yes. And, you know, you may discover that somebody truly is cheap, and you don't want to date them. That's cool. Yeah. But you also, you know, but not, you know, a $500 dinner on a second date, truthfully, that's in the princess category. There you go, Dave. I mean, that's just, that's over the top. Thank you for saying that. So, I'm on your side side but i will make fun of you just because it's easy

so and everybody on social media is wearing your butt out man i mean it's going you got some you got some people that are protecting taking up for you too yes a lot of people it's created like this big argument and all over anthony o'neill uh on you put on youtube right yes it's on youtube you go to anthony go to youtube.com and just type in anthony o'neill on you put on YouTube, right? Yes, it's on YouTube. You go to Anthony, go to youtube.com and just type in Anthony O'Neill. It'll come. I saw an abbreviated thing. Somebody popped on Twitter

a while ago. Yes, people are taking it off YouTube, cutting it up and just putting it out there. It's just, it's zoom zooming all over the place.

And I love it because I, that's how we bring them into our tribe and we're teaching them how to be good stewards and really win with their money. I mean, it's creating conversations

where one lady said, well, what, what budgeting tool are you using? Then I have the opportunity to introduce every dollar. So it's creating a good, healthy conversation. And I actually like the back and forth. I disagree or he's cheap or he should have said it like this. One person said, I should not have even told her I was on a budget. I just should have said no. And I'm like, well, I was on a budget.

So that was my reason why. So it's creating a good conversation. It wasn't. Yeah, I think I think you did exactly the right thing, because the truth is you're not dating somebody for just fun. You know, you're yes. The reason for you dating is marriage is someday finding the right person to marry. Yeah.

And so um yeah i mean i throw that budget in there pretty quick with that yes uh because obviously it's what you do for a freaking living to start with come on man but uh i mean you are a national best-selling author in the money space so duh this is who you're dating duh but uh oh my god yeah dense dense dense it is but the uh but the yeah aside from the fact that you're you know a well-known celebrity in that space uh it is a great filter for maturity self-discipline you know vision for your life or are you just living for the weekend yolo baby you know and uh yolo is hard to support yes it takes a lot of money to support that over a long period of time and so i like it yeah it's coming from a guy who hasn't been on a date except with one woman in 40 years but

so what do i know about anything in the dating world nothing but uh truly dad jokes that's about it but uh or boomer or whatever it is you want to sign to me but um yeah it's it's interesting though to watch that interaction off of this thing and so yeah anthony o'neill on youtube being following their podcast is out there as well and certainly on twitter and instagram and uh you can get this story that's going around. You can join that conversation if you want to. Please do. Like you said, it's a good conversation because it stirred it up. It made people think.

Yes, sir. And that is our job here. And all my Dave Ramsey fans, y'all have my back out there, okay? Oh, yeah. Yeah, they'll all come. All the old boomer tribe like me, they'll all come. They got your back.

They're like, yeah, you don't want to date that girl. That's what you'll get. But, yeah, some of the others, maybe not. Maybe not.

You may get taken down there, man. We'll be all right. We got you here. We got you. Anthony O'Neill, my co-host today on the Dave Ramsey Show.

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And that means if you no longer like or fit the style of your belt, you can replace them for free. Plus, I like the way these guys do business. Grip 6 is determined to help build and modernize american manufacturing to learn more and get this month's dave ramsey special anthony o'neill number one best-selling author of the book debt-free degree jason is in pennsylvania hi jason welcome to the dave ramsey show how can we help thank you dave um i'm colin i'm on baby step seven and I make about $40,000 a year and I'm trying to figure out where to put, um, above the 15%. I work as a teacher, so I don't have a 401k or something with work because it all just goes to the pension and the 6,000 for my IRA does okay,

but I'm wanting to step up how much I'm saving for retirement. I'm wondering about a suggestion of where I could put my money. They don't have a 403B at your school system? That's unusual. I don't know. I want to do something I could look into. I know we've got the pension plan with the state. I work for a charter school, so.

Yeah, I mean, typically a school system will have a 403B as well as a pension. And a 403B is basically the same thing as a 401K. It's got a few little minor differences. It's a little bit more flexible than the 401K. The thing you want to watch for is to make sure you get in good growth stock mutual funds, like we recommend, inside the 403B. But I'm pretty sure you'll have one. I'd be shocked if you don't

um and yeah i would max that out and then i'd max out the roth do you have any self-employed income on the side um no no okay not currently all right uh i mean if you did some tutoring or something obviously you could do some do a sip and do some stuff through the self-employed side, but you got to create some self-employed income. Other than that, you're just in the open market buying mutual funds. Yeah. There's not any, you, you maxed out everything that's available. A Roth, a 403B, uh, would be the two things that should be available to you, but that 403B should allow you to put 19,000 in. So I think it'll be plenty if you, if you have one and I'm pretty sure you do. I mean,000 in, so I think it'll be plenty if you have one, and I'm pretty sure you do.

I mean, I can't think in 30 years I've run into any school systems that didn't offer it. Jason, do you have any kids? I do not. Okay, okay, yeah. Cool, great. Then I definitely agree with Dave. I was going to suggest maybe looking into their college fund, but I agree with you, Dave, on that end. Yeah, just max everything out.

And, you know, you've done a great job getting your house paid for. I mean, at this stage, you've done really well. Keep it up, dude. All right, Devin is in Nevada. Hi, Devin. Welcome to the Dave Ramsey Show. Hey, Anthony. Hey, Dave.

How are you guys doing? Good, man. How can we help? Good. I have a question on purchasing a home. The last two years, I've made really good income. But now with this COVID thing, I believe my income may be different. I was 70% of the 3B, saving the 20% down. So I only need like 10,000 more.

Should I wait a year to see my new income or once I hit the 20% with the three to six months emergency fund and then go through with the house? Devin, how much do you have right now as far as, not have, but how much are you making a year right now? Well, so I'm a wedding photographer in Vegas. And so it's like commissions, hourly tips or whatever. Last year, my gross was $65,000. Okay. So this year, I don't know what it'll be, but I do have $35,000 already saved up. So you have $35,000 saved up.

That's on top of the three to six months, correct? No, it's including. So it would be 30%. Okay, cool. So this is what I'm teaching, and Dave as well, is that you're going to save your three to six months, okay, and then you're not going to touch that, and you're going to save 10% to 20% down on top of that.

So you've got to do the math there. So whatever your three to six months, that's your emergency funds. You don't touch that to put down on top of the house. So you got to do the math there. So whatever your three to six months, that's your emergency funds. You don't touch that to put down on top of the house. 3B is you're going to set aside 10 to 20%. So in your case right now, I'm going to recommend you max out that three to six months. Sound like a young guy. I'm cool with you doing three months just on that end. But you need to go ahead and just get that and then start saving for the house.

So don't be in a rush to get into a mortgage. There's nothing wrong with renting. Now, so if you called $15,000 of your $30,000 in your three to six months, that would, or if you're $35,000, that would give you $20,000 left over to put as your down payment. And you're making $65,000. That's fine. The thing you've got to figure out is what your question is, is are you worried about the income stabilization? You know, what kind of a market is there going to be for wedding photography

in the coming 12 months, given that the wedding season is in the summer of the summer and it's definitely going to be down, right? Correct. Then all those people that do not get married or get married without going full on with photographers and everything, do you not think they'll do some photography when this all clears up a little bit later or get married a little bit later?

That's true. I wonder if you're going to have, instead of this year being a June wedding, they might be September weddings. I don't know. I don't know what people are doing. But I would find out from some of the stuff you had booked that canceled, are you all just not getting married or did you just get married cheap or you know two of you there within the backyard with a social distancing wedding or are you waiting till

september and have a big celebration because the ones that are pushing it down the road like that you haven't really lost that income it's still going to come the ones that did it on the cheap that you lost that income and it's going to be a year before it recovers and we don't know exactly what the new world will look like after that i suspect that it may take a while for you to get back to where you were unless you come up with some creative ways to do photography and you know kind of remodel your business a little bit um but that i'm with you if you want to wait a year if you want to wait a little while and get this all figured out before you jump into a house payment, not knowing what your income is going to be, there's nothing wrong with that. Uh, and that's not a fear based thing.

That's a thing that just says, um, I want the numbers before I pull the trigger. All right. Uh, Nicole is with us in Georgia. Hi, Nicole. Welcome to the Dave Ramsey show. Hey, how are you? Good. I have a very unique question.

I am self-employed, and I earn, I can kind of hear a feedback. Oh, can you guys hear me? Yeah. Yeah, you earn what? Oh, okay, there you are. I own a business. I'm a single mom, so single income household. My business does pretty well. I am in a little bit of a situation because my income is about to double over the next 12 months, but my income is

very unstable. So like one month I could get like 20 grand and then go like two months or three months with no income. And I have my home paid off already, which I also have a rental property on the property. So I'm getting income from that. I have like 5,500 in collections and I have my car student loan and 10,000 in credit cards. And I was trying to figure out if you could help me first calculate what I should be paying myself. I've always dealt with that. Like I would just kind of take what I need as it came in and then leave the rest in the business. Second, I would like to try to have $2 million by 50. So I wanted to see if you could recommend a sort of fund that I could use. And then third, if I should pay off credit cards or debt first. And I also, I teach people how to

repair cell phones. So I also can do that in addition to my training to kind of help pay for other things. So what are you going to make in a year profit that you're going to pay taxes on total in a year? Average, I make $55,000, but this is about to double, so I'm looking at $100,000 over the next couple of months. Why do you think it's going to double? I have a large contract that's coming through July 1st. Okay, excellent. Well done.

Well done. Okay, so we're going to call it $100,000. And how much debt do you have? Well, I only have $5,500 in collections. But you said my car. Do you owe money on your car? My car is $13,000. That's debt.

My car is $14,000. Okay, that's debt. That's $27,000 and $5,500 puts you at500 puts you at 325 what else how much on the credit and then 10 000 in credit cards and a 28 000 business loan that i had okay so pretty simply um we're going to work the debt snowball absolutely absolutely you know and nicole here i want to tell you i love your passion. I love the question that you're asking, but you've got to start the foundation. Start with the baby step number two. Okay.

Ashley, do you have $1,000 that's sitting in your emergency fund right now? I have more than that, but, yes, I did that very quickly. How much do you have? I did that last week. How much do you have? I just jumped on it last week, and I was like, I'm in there. How much do you have? I have $3,000 right now.

Okay. So, cool, Nicole. Take $2,000 of that, put it towards your debt snowball, line it up from smallest to largest, attack that. Once you get that, then we're going to move on to an emergency fund. Don't worry about becoming a millionaire just yet. Build your solid foundation first. Now, list your debts smallest to largest. Attack them in that order using everything above $1,000. And then what I would be taking home from your business is everything you can as fast as you can.

I don't think you've got many expenses in this business the way you're laying it out. I don't know that you need to leave much over there. You need to bring it home and clean up this mess. Hold on. We're going to give you a copy of the book, The Total Money Makeover, to help you do that. Business leaders now more than ever, we need people with the right skills to support our communities, especially the frontline workers who provide resources and care for those most in need. To help, LinkedIn is offering free job posts for healthcare and essential service organizations that need to quickly fill critical roles with the people who help us all.

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My co-host on today's show, Anthony O'Neill, Ramsey Personality, number one best-selling author of the book, Debt-Free Degree. He also just launched a quick read on Ramsey Press. A quick read is like a 50- or a 60-page book. It's basically a chapter or two. And we're putting out a few of these quick reads just to get some straight- up information to you guys. It's called Destroy Your Student Loan Debt, The Step-by-Step Plan to Pay Off Your Student Loans Faster. And so, Anthony, this book is a great book for people that have been following us for a long time to give to someone else as a gift. Definitely.

Definitely, Dave. This is a great book for people who do not, who really do not know our teaching. We're going to pretty much walk them through on how to get on a budget, how to use debt snowball and how to throw more money towards student loans each month. And right now is a great time, especially being that we have like another four months off with no interest without making any payments. So if student loans are the only debt at this present time, we're going to teach them how to go ahead and knock this out and get it out the way quick, fast, and save them some money in the long run. But if you've been listening to us for 10 years, you don't need this book. You've already known this stuff. But again, it's a nice entry point for those of you that know somebody that's got some debt. It's called Destroy Your Student Loan Debt, the step-by-step plan to pay off your student loans faster.

And, of course, it's $10. It's part of our $10 sale right now at DaveRamsey.com. And you guys are probably aware of the stimulus package out there. You may have even gotten your check from the government in the mail. Did you know that free money is only part of the stimulus bill? One of the things the bill does is change the rules on 401k withdrawals. It used to have a 10% penalty plus your taxes if you take the money out. They waive the 10% penalty through the end of the year to allow people to use their 401k,

and this is tempting for people to take money out, but it's a bad idea. Do not cash out your retirement. Do not. Don't rob from your future for your present. Don't do it. That's good. The future you will be pissed at the current you if you start messing around with this. Yes, sir. And if you don't have somebody to talk to, we'll connect you with an investing pro. Go to DaveRamsey.com slash SmartVestor. Click the SmartVestor button at DaveRamsey.com and put in your info. It'll drop down a list of the SmartVestor pros in your area that we recommend. They don't work for us, but they're going to give you advice that sounds remarkably

like what we talk about here. They always have the heart of a teacher because they want you to understand why it's a bad idea to cash out your retirement. You're going to lose all those years of the compound interest, of the growth. I love it. All of it, Dave. I got upset just the other day. Someone told me they took out $10,000 to invest into single stocks from the 401k.

So borrowed money from their 401k to invest into single stocks. I had to catch my mouth because I really just wanted just to scream and go off on them because you robbed from your future you're paying back money well you just quadrupled your risk it's borrowed money and it's single stocks yes and so they're borrowing on their 401k in that case right yes yes and that's different than cashing it out early but both are dumb ideas both hiro is with us in texas, Jairo. How are you? Good afternoon, sir. Thank you. Thank you both, Anthony and Dave, for taking the call.

We appreciate that. Alrighty, so I've successfully paid off all of my debts, actually. I should rephrase that. Most of my debts, and the last final one that I need to pay off is the negative equity in my vehicle. With the income that I have, and with the stable income that I need to pay off is the negative equity in my vehicle. With the income that I have

and with the stable income that I do have, I'm going to be able to pay it off by sometime in December. So the two questions I have is, should I make payments per month, obviously making overpayments each month to get down to the value of the car, or should I save up and make one lump sump towards that negative equity so I can then go sell the vehicle and be done with it? When that's completed, the next question would be, should I buy a little cash car with some reliability issues or try to buy the best possible cash car or should I finance a little small car that I can be able to apply the same method to that little car and pay it off within four months? Jairo, how much is the car worth?

How much is the car worth and how much do you owe on it? Sure, sure. What I owe on it is $19,982. Okay. That is the official payoff. And the value of the car is around $13,000, give or take $500. Okay, so you're about $4,000, $4,000, about $5,000 upside down. And then what kind of car is it?

I'm curious. It's a little Fiat, a little Fiat SUV. Okay. So what's your household income? What do you make? Sure. I make $37,000 before bonuses, and I do have a supplemental income that I get from food delivery services that I provide. Okay.

Well, a $13,000 car is not completely out of line if you chose to just pay it off and keep it. Yeah. But a $20,000 car is. You've got a $20,000 car debt, basically. So if you want to pay down the $7,000 and then sell it because you want to get rid of the car anyway, there's nothing wrong with that. And you can do that monthly or in a lump sum. It really doesn't matter much which one you do. I would probably go ahead and pay extra on it monthly just because if the money's out of your hand, it doesn't accidentally end up in the wrong place later. Right. Makes sense. Yeah. I always try to trick myself. I do currently have a four months

worth of monthly expenses saved up. So as far as money goes. How much is that? I just have just under 4,000 bucks and that's enough for me to be able to keep me afloat for four months. And with the job that I have, I have no concerns of me being laid off or losing my job or having a decrease in my income, actually. I would take that down to $1,000, but you may want to hold it for right now until you get the car down. So if you're going to sell the car, put $3,000 on it or $4,000 on it, and then pull $3,000 out of that account and finish up, get you down to $1,000, and you get rid of the car. If you're not going to sell the car, then let's just start throwing money at it.

Everything above $1,000 needs to go at that car like crazy and really, really focus on it if you're going to keep it. Because it's not an out-of-line car, and you're not going to move down a lot from a $13,000 car. I mean, you could move to an 8 or a 7 or a 5 or whatever, but this is your only debt left. And if you just focus on it and pound on it and beat on it, I think you could be done with it in like a year, year and a half,

and you're fine to keep it if you like the car. Yeah, I was going to say that. And the second part of your question is I would just keep it. If you're going to work that hard to pay it off, don't go buy another cash car. Go ahead and move over to baby set number three and start stacking up your money. We're about a car a few years down the road. Exactly. Creed is in Maine. Hey, Creed, how are you? Good. How are you? Better than I deserve. What's up? So I am, me and my wife are currently on baby step number two, and I'm just wondering if we

should pay our debt down to a manageable amount and then get a house so that way our credit is good enough to be able to be approved because our mortgage lender that we visited before we started doing the baby steps was always telling us not to pay off all of our debt because our credit would go down and we wouldn't be able to qualify okay well i think probably what you just need is a new mortgage lender yeah okay and here's why you can you can get a loan with zero credit score with a mortgage lender that knows how to do manual underwriting and that means they they do they manually check your job to make sure it's there they manually check your down payment with the

bank uh they manually check your uh record with your landlord on if you paid on time or early. And if you have a zero credit score at that point, you'll be fine. Now, the only way you're going to have a zero credit score, and that's what you want, is to have paid everything off and closed all of the accounts. But, no, I'm not going to manage debt to create this false, this illusion that you're winning with a credit score in order to get a mortgage. That's just ridiculous. That's a dog chasing its tail. I got debt so that later I can get debt, so that later I can get debt, so that later I can get debt, so that later I can get debt.

And that's the cycle that America's stuck in. And this worshiping at the altar of the great FICO. Great FICO is not your provider. So contact Churchill Mortgage, and they can help you with manual underwriting on a mortgage. That's what you did, didn't you, Dan? Absolutely. Yes, sir. I'm on babysat number six, Creed.

I took out a 15-year fixed rate, put down a lot of money, and it was easy, honestly. You didn't have a credit score? Didn't have a credit score. No. And Churchill Mortgage did the loan, right? Churchill Mortgage did that loan quickly. Yeah. I bet they did.

I bet they did. This is the Dave Ramsey Show. Business leaders make your life easier with FreshBooks. Whether you're starting a business or you've been at it a long time, FreshBooks is one of the smartest decisions you'll make this year. FreshBooks is an accounting software designed for people like you that lets you do the things like automate your invoicing and your online payments so you get more time to work on your business try fresh books for 30 days free at freshbooks.com slash dave ramsey Ramsey Personality, Anthony O'Neill, co-hosting on the Dave Ramsey Show today with me.

Open phones at 888-825-5225. Elias is with us in California. Hi, Elias. How are you? Hey, what is going on? I'm so excited to talk to you. You too, man. What's up? Hey, so, all right. I'm 27. I'm currently making about $60,000 a year. I'm self-employed, okay? I'm on Baby Step 2, and I've paid off all my credit cards except this car loan. It's at 18 interest rate, 18% interest rate. Good lord. Car loan is about $10,000 less. And I travel a lot for work, so I purchased another car cash so that I can circumvent

the miles on the finance car. My question to you guys would be, should I dump this car loan, which I would be negative $3,000, because I already did that research, or should I keep the car loan, which I would be negative $3,000 because I already did that research, or should I keep the car loan, continue to pay it off, and have both cars? Okay. What gets you to where you want to be five years from now? Man. Pay it off. Pay it off.

Pay it off. Pay it off and keep it? Pay it off and sell it. Okay. So and keep it? Pay it off and sell it. Okay, so pay down the $3,000 and sell it. Get you where you want to be five years from now. So you'd have no car payments and no debt. You'd build your emergency fund. You're driving the hoopty build because you're putting miles on something,

which is smart, right, putting miles on a cheaper car. And then later on, after you get your emergency fund built you can save up and move up in car with cash right yes sir does that get you where you want to be faster or is the other way get you there faster it's me where i want to be faster okay well there you go then man i mean i i think at 27 years old you have enough time uh man to go ahead and just get that three thousand dollars sell car, ride this hoopty for a little while. And then once you get that three to six months in your emergency fund, man, just start investing and just go and buy a real nice car. And by then, it'll be worth it.

You'll be 30, 29 maybe. That's a good plan. I wish I would have done that. You know, the thing is with cars, Anthony, that all of us do this because it's a big item physically. Yeah. And it costs a lot of money. We tend to emotionally feel like a car purchase is actually more permanent than it is. It's not.

I mean, you can drive a hoopty for a year. Yeah. And sell it. Yeah. And get you another one. You know, you can, as long as you're not trading into brand new cars all the time and you're doing it with cash, You can drive a Hooptie for a year and sell it and get you another one. As long as you're not trading into brand new cars all the time and you're doing it with cash, you don't have to keep cars. Yeah, yeah.

Our cars can just go away. And when we say Hooptie, we don't mean no deadbeat car. It's a quality car that gets you from point A to point B. It may not get you to point C, but it'll get you from home to work. Well, it's not exactly your dream mobile. Exactly. You're not styling. Yes, for sure.

Definitely not. But it's a temporary thing is my point. You're not stuck doing it. This is not a lifetime. Yes. We're talking about doing this for a year. Yeah, and you're doing it for a reason. At the end of the day, that's why you got to look at it. I'm driving this car so one day I can own my dream car yeah you drive like no one else so later you can drive like no

one else you live like no one else so later you can live and give like no one else virginia is with us in maryland hi virginia how are you yeah thanks for taking my call dave uh question i have for you is that my husband and i were in our 70s, and unfortunately we haven't been listening to you very long. We've heard you as we travel across the country for our family, but that would be all that we would be able to hear you. But our question is, we have these IRAs that are at a local bank, and they're just getting, you know, like.05, and we have CDs, and we have a money market.

But we're wondering now, we're not getting anything on the money market. We're just trying to figure out what to do, how should we invest with what we have. How much is in the IRAs? We have about $95,000 in the IRAs. Okay. So you're earning $500 a year rather than $10,000 a year if it were invested well. Right. Yeah, it's probably time to move that.

Your money market is good for your emergency fund. That's fine. But if I were in your shoes, I would click SmartVestor at DaveRamsey.com, sit down with one of the SmartVestor pros, and begin to learn about some investment options that are much better for your IRA. And we recommend never doing an IRA at a bank for precisely the reason that you've experienced. Because an IRA at a bank, I mean, nine times out of ten, is going to be just stuck in a money market type account earning nothing.

Yeah. Yeah. And we see that there, Dave, with 0.5. We're seeing on average anywhere between 10% and 12% on your return. Yeah. Yeah. And we see that day there, Dave, with 0.5. We're seeing on average anywhere between 10 and 12 percent on your return. So I agree. Smart, best of pro and stay encouraged. You know, you're not you're not too far behind. You get the right people get on the right plan. You'll be OK. Yeah, you just but you are going to have to, you know, get really serious about building this up now uh and investing it better so i wouldn't sit around talk about this for two months i would get it done and by the way the stock market's down

right now which is good news because you're buying while it's on sale yes sir so it's a great time to roll that ira into some good growth stock type mutual funds and again smart investor pro can help you do all of that they don't work for us these are the people we recommend in your area steven is in north carolina hi steven how are you doing well dave how about yourself good man how can we help hey dave so all right so i am 23 years I'm a year removed of graduating with a public health degree. Right now, I have a car. It's actually my first car since 2004, Toyota Corolla.

It hasn't really given me any problems, but it's on its tail end. I currently have right now $8,000 saved up in my savings account and I've always been of the mindset that my next car I was going to pay out cash for it. So now the dilemma is I also have a $32,000 worth of student loan but I'm planning on going into grad school within the next year. So should I just take that money, my savings, and pay towards my student loans now while there's no interest? Or should I just go out and try to find a new car before getting into grad school and all that good stuff? Steven, let me ask you this question.

Why are you going to grad school? Do you need it for the particular career field that you're going into? Or do you just want to go into it right now? Well, right now I'm currently not using my bachelor's degree at all. I'm trying to get into nursing school, particularly direct entry, like a master's of nursing. I'm not getting anything near, I'm not making anything near what I want to make in life.

So I'm just taking this opportunity to try to correct whatever wrongs I've probably done while in my time at my university. And when you go to school to get your nursing degree, are you paying for it cash? No, I'll be taking out more loans. Yeah, so. But the thought is, should I just decrease the total hit at the end?

No. For the sake of living the rest of my life a little bit easier? No, no, no, no. I don't like the fact that you said you're going to take out more loans to go back to school. So my thing is right now, we need to actually sit down and get a plan to get a vision to where, okay, here's where I'm at. Here's where I want to go. How do I get there without racking up any more debt? I have no problem with you going to get, you know, your nursing degree so you can get into that field. I have a problem with you racking up debt for that. So my thing is how do we cash flow that? Okay,

that's going to be the first thing. But then at the same time you're 23 sitting with 35 000 worth of debt the car is not really an issue right now the thing is one how do we get out of this debt two do i have a job do you have a current job right now yes well right now i am a stretch therapist and also i do sports performance training. And how much are you making a year? All together, probably around $30,000. That's good news. Yeah. So Anthony's right. The first step to getting out of debt is don't borrow any more.

So the $8,000 you have saved goes towards your nursing degree and scratching up more money, working more, living on nothing. And no, you don't move up in car and then turn around nursing degree and scratching up more money, working more, living on nothing. And no, you don't move up in car and then turn around and take out student loans because you don't have any money. So we're going to drive that car through that you got through nursing school. And you need to gather up as many scholarships as you can, work as many jobs as you can, and let's pile up cash and finish up this degree that you're looking for with cash. The cash you've got

plus the cash you scraped together. Hold on. We're going to send you a copy of Anthony's book, Debt-Free Degree. Kelly will pick up and get that done for you. That puts us out of the Dave Ramsey Show in the books. Our thanks to James Childs, our producer, Kelly Daniel, our associate producer and phone screener. I'm Dave Ramsey, your host.

We'll be back. Hey, it's Kelly, associate producer and phone screener for The Dave Ramsey Show. This episode is over, but if you've heard about an event, product, or service and didn't have a chance to write it down, don't worry. We list everything you've heard about during this episode in the podcast show notes or head to DaveRamsey.com. Thanks for listening.