The Ramsey Show - App - Knowledge Is Powerful, but a Degree Might Be Worthless (Hour 1)

Episode Date: January 8, 2020

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Music Music Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studios, 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. Open phones at 888-825-5225. That's 888-825-5225. Brad starts off this hour in Tennessee. Hi, Brad. Welcome to the Dave Ramsey Show. Hi, Dave. Thank you for taking my call. It's an honor to talk with you. You too, sir. What's up?

I am wondering if I should drop out of college. Why would you do that? Well, last year I started my own business doing private tutoring, and it's done quite well, and I'm very into it, and my degree has nothing to do with it. What kind of tutoring are you doing? I'm tutoring for the law school admissions test. And you don't have a college degree?

No, sir. That's weird. I'm sorry, go ahead. I wanted to be a lawyer for a short time and so I ended up taking the test and did quite well. And so I actually took the test and then I decided later on that I didn't want to be a lawyer anymore so I just had this score and I thought I really like teaching people and helping people in that way and so I kind of just dove right into it. Okay so you're teaching them for the LSAT is that what you're talking about?

Yes. Okay all right cool. How old are you? What year of college are you in? This is my fourth year of school. I'm currently a junior, though. Okay, and what are you studying? Psychology. Okay, all right. And what was your original plan before you became a law school test tutor? My original plan, I started um as a music major and then i made

the change actually last year in the midst of all this to psychology because i thought it would be interesting and i've also just kind of become disinterested in that as well okay all right um so you like uh one and a half years completing your four-year degree? It's going to be, yes, one and a half years, sir. One and a half, right? One and a half years, yes. So, yes. Okay. This semester plus all of next year. Yeah, okay. This semester plus a full year.

Correct. Okay. And what kind of money are you making as a tutor? Well, I started about a year ago, last January, and last year I made $62,000. Okay. Very good for a guy your age. Very good. Thank you. You're hustling and grinding. Very good. Yes. Okay. Here's what's running through my head. A couple different ideas are bouncing back and forth,

and so I'll just put them all on the table so you and I can talk about them together, okay? Knowledge is power. It gives you options. It gives you the ability to see things you couldn't see before. So knowledge is powerful. Degrees are by and large worthless. Okay. But knowledge that you get while you're getting a degree, so a four-year education in a good field of study is worth the money as long

as you're not overpaying for it at some famous school or out-of-state tuition or something like that, right? But by and large, I'm a proponent of education because I've just found the smarter I am, the more things I know, the more doors can open for me because I can actually see that there is a door there. And that's running through my mind here, okay? So if you were my son, this is what I'd be talking to you about. The second thing is I love entrepreneurs and I love entrepreneurial spirit and a guy your age that can get up, leave the cave, kill it, and drag it home to the tune of what you've done and you just made up a niche for yourself just out of the blue. You've got tremendous potential.

I mean, you could own a business with 100 tutors working for you, tutoring everyone from the MCAT to the LSAT to the ACT to the SAT to whatever else. I mean, this could be parlayed into multiple layers and scaled, but only if you've got the knowledge to do all of that. Because right now, when you don't tutor someone, you're unemployed, and the end of your income potential is how many hours there are in a day. Correct. Because you are the only person producing widgets.

If you're sick, no widget gets produced. If you go on vacation, no widget gets produced. If you're just lazy, no widget gets produced, which you're not. But if you're not working, you're unemployed. And so you don't own a business, you own your job. Yes, sir. And so what I'm thinking is out there, what does a guy as sharp as you, what are you going to be doing when you're 40?

I don't think you're going to be doing exactly this. But I think you might have found something that scratches your itch. You like this. And you're making money doing it. So, you know, you need to think about all those things, what it is you like about this. And, you know, it could be that you finish up your psych degree and throw into the gumbo a whole bunch of business classes as electives as you go out the back door. And you set yourself up to grow your business with that education. I mean, it can have value that way. I mean, I got a four-year degree from a state university

in finance or specialization in real estate. So I've got a lot of accounting, a lot of finance, a lot of statistics, a lot of marketing. Forty years ago, under my belt, but I still use some of those basic academic lessons every day running this business with 1,000 employees. This morning I was looking at a piece of research and asking about the control groups and really pushing my research guys back on a basic statistical,

a basic discussion of how to analyze statistics that I would not have known had I not gotten a four-year degree. You following me? Correct, yes. So I'm saying there's actual street value in the academics if you think about how they're going to apply. So I think the way you make the decision is not, oh, I'm making really good money right now, screw this psychology degree, which is not a bad way of looking at things, but the way you make the decision is what series of steps or what modification of what I'm doing gets me to where the 40-year-old me is really happy with the 21-year-old me's decisions.

Right. If you think about it through that lens, it might cause you to finish up with a bunch of business that's an idea because i just see this as something you're obviously good at and you could train other people to do it and have a business not just a job that you own um because for right now for who you are you're it. If you're doing the exact same thing when you're 40, I would say you're not killing it, because you haven't grown, changed, adapted, and by then we'll have holograms teaching what you're talking about, and we won't need you or whatever.

I don't know. You know, when I started, the Internet hadn't been invented yet, so old I am. The point is, though, you're going to adapt and change, and where do you want to be in your future? And what series of steps take you to that goal? Not just, I don't need a psych degree to teach LSAT. Which I completely agree with that conclusion. But it's a short-term thinking conclusion.

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time only, this offer is applicable to closing costs and is not combinable with other offers. Terry is with us in Massachusetts. Hi, Terry. Welcome to The Dave Ramsey Show. Hi, Dave. Thank you for taking my call. Sure. What's up? So my husband and I, forgive me,

I'm pretty nervous right now. My husband and I are raising our granddaughter. She's 10 years old. We're both in our mid-50s. She receives about $500 a month for a Social Security type of thing. And other just putting it sort of in a bank account, not really making much money on it whatsoever. And I owe $30,000 on a 401k loan that we took out a few years ago. And I was just wondering your thoughts on if i take her money to pay that loan off um it is i am legally i can do that as far as you know what i do with her money but i just don't know if that's wise to do um or if i should be putting it aside you know in a mutual fund for her starting now um did she have she have a parent pass away?

Yes. Her father passed away about five years ago, and my daughter, her mother, isn't fit to care for her, so that's why we have her. I'm so sorry. Tough times. Thank you. Okay.

Well, as you said, legally, you do not have any obligation to do anything with this money except spend it. And here's the thing. Morally, what is your household income? About $130. Okay. Morally, you spend more than $500 a month on her anyway. Right. And so if you just put this into your budget, your monthly budget, including whatever you've saved up into your monthly budget or into your debt snowball or whatever, morally it's

fine because the purpose of the money is to make sure the child is taken care of and you're spending more than that on her. I mean, by the time we factor in, you know, not only food bill, but just clothing and medical care and electricity and housing and transportation and whatever else, it's easily more than $500 a month. Right. So this doesn't even cover your cost of raising her. And so it's just reimbursing you for what you're spending is all it is morally. And legally, that's certainly true. I mean, legally, you can do with it whatever you want.

So I don't separate child support and I don't separate Social Security given to minor children from the budget for that reason, because neither one of them are never enough to cover the cost of raising the child. And so the caregiver that is receiving that money is always spending more than that. So I just always put it in the budget as one more form of income for our household. Now, that means that that savings account, you can do whatever you want to with it. How much is in the savings account? Well, right now there's about $11,000 in our savings account, but I had opened a CD when the rates were a little bit better, about 2.5%. That is about $10,000 in that as well. And that will mature up in June.

So I will have access to that in June. You have access to it now because your penalty would be they would take a portion of almost nothing, which is what they're paying you. It's just almost nothing. So, you know, you think about it. I mean, what they pay you and they take a piece of it, whatever. It's not a big deal. It's a lot more than credit card debt.

Credit card debt is a lot more than credit card debt uh credit card that's more expensive so do you have any money saved yourself other than those two figures um we have about 10 grand saved okay so we could scrape all this together and knock the 401k loan out we could let's do it and we could let's do it if you're going to work our plan and be on a budget and work your debt snowball let's do that and get rid of is that your only debt other than your house it actually is our only debt besides the house so okay so that that debt goes away and then that changes our budget and we have the 500 still coming in and that changes our budget and we're going to you know run a budget that includes saving for her college. It includes you saving for retirement,

includes you building an emergency fund and doing all the baby steps that we talk about. And that's exactly how I'd do it. Thank you for taking care of your baby. All right, Karen is with us in Washington. Hi, Karen. Welcome to the Dave Ramsey Show. Thank you, Dave. It's so great to talk to you. You too. What's up? So I have just a quick question for you. So I am in the middle of baby step number two. So I have my $1,000 emergency fund saved up,

but I'm also planning for a move coming up here in about five months in June. I'm moving up to Alaska. So my method so far has just been to stockpile as much cash as I can, but I'm not sure how much is too much and when I should start throwing it at the debt. Okay. What are you going to stockpile as much cash as I can, but I'm not sure how much is too much and when I should start throwing it at the debt. Okay. What are you going to Alaska for? I lived up there right out of college, and I just know it's where I would like to be, and so not really happy here in the city and paying so much for rent, so I'd really like to go there and have that be the place where I put my roots. Okay. What are you going to do for a living?

I have a degree in hotel and restaurant management, so I can find a job managing a hotel up there. That's what all my career experience has been in. And you'll find that as you make the move or before you make the move? I plan to do so before I make the move. So I have a budget to be able to go up there and take some flights and stay to interview and all that good stuff. That's wisdom. Okay. Yeah. And just, you know, just showing up in Alaska and saying, I'm here is probably not a good plan. Okay. So here's the thing. I think you need to, let's itemize out and pretend that your move is a project that you're project managing. And let's just, let's just create a budget for it. Let's do a little bit of research.

What have you got to move? What's it going to cost you to move? Are you moving anything, you know, that costs more to move it than it's worth, which means we wouldn't do it, give it to the goodwill or whatever. Right. So, I mean, what all is it? What all do you need to move and what's it going to cost you to make this move? You've got some deposits on that end in terms of getting into a place to stay,

a couple of utilities you'd have to make deposits on. Call the local area you think you're going to be living in. Ask what the utility deposits are. Find out what the rents are. Figure out what you need to have for a deposit on that. And then the actual plane ticket and or moving expense if you have items that you're going to move. So what's the deal on that? Do you have a bunch of stuff to move or are you just going to pack your suitcase and move off? Well, I'm filling up my car and I'm taking a boat up there and I

have every itemized cost already down to the groceries I'm going to need my first week. Okay, so you've got a budget. You've already done all this. So how much is that money? Yeah, so I figured out it's going to cost about $5,600, and that includes two months rent and a security deposit. So how much money saved, now that we know the budget, you're way ahead of me, now that we know the budget, how much money saved is too much? You tell me. I don't think you need $50,000. No. Okay. I saved $6,000, so I was thinking maybe about $1,000 over just for some wiggle room.

Okay. Nothing wrong with that. Does that sound about right to you? Sure, sure. What do you make now? About $45,000. And how much debt have you got now? I have $17,000 in student loans and about $700 on a credit card.

Okay, cool. Yeah, I would get your war chest ready for the move and then push play again on your debt snowball and start working your plan. But you just don't touch the war chest and you execute the move. I think you've thought it through perfectly. But you don't need $15, 15 000 you know do you i don't think so i don't either and and i think if you stop i think if you stop at 5600 exactly you're you and i both know it's not going to work out exactly like you plan nothing does so having a little wiggle room is a smart thing

so yeah i think six or uh seven thousand bucks is probably smart thing. So, yeah, I think $6,000 or $7,000 is probably smart. You know, it's $1,400 over your budget. $7,000 is. And that's probably a good place to be. And then push play on your debt snowball again. And let's get as much debt cleaned up as we can before you make the move. Make sure you've got a job. Because otherwise the great white north will be a nightmare not a dream so you know let's

we're not we're adults now we get to do things that are smart and so you can do that hey good call and it sounds like you got this very dialed in very proud of you good job this is the david mc show We'll see you next time. Business leaders, right now you have the opportunity to take your business to the next level this new year. You can start by hiring the right people to help your business grow. At Ramsey Solutions, we post on LinkedIn Jobs because they are the best at matching the right person with the right job. LinkedIn Jobs screens candidates with the skills you're looking for so you can hire smart and fast. The thing I love about LinkedIn is they look beyond just the work skills

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That's linkedin.com slash Ramsey. Terms and conditions apply. So when I was a little redneck, burrhead kid, I had a basic bicycle I got when I was seven years old had one gear you remember that you remember the banana seat and the butterfly handlebars i mean think 1960s right 1970s and uh our neighborhood i mean i'm in tennessee had a lot of hills and there was um one street that we had to go up to ride the bike to school. Leopold was the name of the street. And it had two hills. In other words, you got up one, and then you had a little bit of a flat spot,

and then you had to go up another one. And when you're a little bitty guy with a single gear, those hills were like mammoth. And you go back and forth, back and forth. You know what I'm talking about. Switch back, switch back, switch back, switch back. back switch back cut over cut back cut over cut back and just try to keep rolling forward enough to get an inch up a little bit at a time and finally you make it and you sweat and you push and you pedal and finally finally you get to the top. Now, I mean, this is like something out of the movies for most of you, but we had like baseball cards in our spokes,

and at the end of those handlebars we had these little streamers. And so when you're going back down the hill on the other side, you get to ride. Of course, you're coasting. And what do we do? We put our feet up on the handlebars, laid back, and coasted all the way down with those baseball cards clicking

and those streamers flying in the wind. When you're investing that top of that hill, when you finally reach the top, we call that the pinnacle point. The pinnacle

point is when there's enough money in your account that the income off of your investments now pays you more than your job does. That's the pinnacle point. So from then on, you put your feet up on the handlebars, and you listen to the click, click, click, click, click of the baseball cards and the spokes put there with a clothespin, and the streamers are flying and the wind is flowing through your hair because from then on, your money makes you more than you make you. That's investing. It's hard. To get to the

top of the hill, you got to have some help. And it's really good to have a coach. It's really good to have a teacher in your corner, an investing professional to help you create a plan for making it to the top of that hill. We call them smart investor pros, because we think you guys are smart investors. And so we call them pros that help you do that hill. We call them SmartVestor Pros because we think you guys are SmartVestors, and so we call them pros that help you do that, and we vet them, and they don't work for us, and we send you to people with the heart of a teacher that will be cheering you on, giving you an actual plan to get to the top of that hill

where you reach the pinnacle point. You can find local SmartVestor Pros in your area. There's over 1, 1200 of them in america that we have vetted and endorsed they do stuff the way we teach consistent with what you hear here on the air and with the heart of a teacher when you click smart investor at dave ramsey.com it'll drop down a list of the smart investor pros in your area you select the one you want to work with but you'll find all of them to be excellent people. And then you can make it to the top of the hill.

It's like having a bike with gears versus not having a bike with gears. Ashley's with us in Ohio. Hi, Ashley. Hi, Dave. I'm so excited. Long-time listener caller, or not caller, but yeah, I've been in your corner for a long time. Well, thank you. So this is the first time calling in.

Cool. How can I help today? My husband and I are kind of at a crossroads, and I jokingly said, well, I'm just going to call Dave, and he said, do it. So this is my question. Then when they answered the phone and you didn't get a busy signal you freaked out i did yeah because there's about 5 000 busy signals uh every 10 minutes right now on the on this show uh because we only take four lines it's the only reason i have three people sitting in queue so it's like we get a lot of busy signals anyway Anyway, how can I help? You got through. Yeah, I'm so glad. So I am calling

because my husband is about to retire in the military, and we have been praying for the last four years to go back to Alaska, like your last caller. Wow, Alaska's popular today. Alaska is popular today. So we were in Alaska about five years ago, and we didn't realize how much we missed it until we left. And long story short, we've been praying and we finally have orders to go back. from my family and it's mostly it's actually all in stock um my question to you is at what point is it smart to take out uh cash out stocks in order to put a substantial down payment on a house when you get ready to put a down payment on a house so i've actually called your investment pro people and they've told me that like the amount of inflation um you know the the um what is it the interest rate in a home loan is lower i don't i don't think you got one of our people if you did i need to know what the name is i'll put you on hold when we're through okay that's not advice that's the opposite of what i just talked about before i picked up the call with you because it's not the advice we

would give you we always want you to pay off your home you know that you've been listening and i have been how much how much is in the stock account um in the stock account um is 350k what are you talking about paying for a house um That is another discussion between my husband and I. So we are thinking between $350 and $450 tops. Okay. Then I would use all of this money. Say that again? I would use all of this money.

You would cash in everything? Yeah, everything. Okay. Or don't buy the house. Or don't buy the house. No, I understand. don't buy the house. Or don't buy the house. No, I understand. So then after the house. You remember the part when you said you listen to me all the time,

and you remember when you listen to me all the time? I always tell people to pay off their houses. You've never heard me tell someone ever in 30 years to leave money in an investment, unless it was a retirement account, and then have a house mortgage. You're right. I guess it's different when it's your own personal situation than calling in. Well, it's an inheritance, and so there's some emotion tied to that, and you don't want to do something that is, you know,

I'm not suggesting you go burn the money in the backyard. You're buying an asset. You're trading one asset for another. But it might make you stop and think about what you are paying for the house. In other words, I would recommend you get your budget down on the house and let's pay cash for it. Really? Yeah, really. You said $350,000 to $450,000, and I just said $350,000 because you had $350,000 in your account.

Yeah, and it seems like the ones that are at the bottom of the list are not the prettiest ones on the block. They never are. $350,000 houses are always less than $450,000 houses. That's why they cost less. But, yeah, it's still not bad. I mean, you're going to stay in Alaska, right, after he finishes military? Oh, I don't ever want to move. My family doesn't like the idea of us going up there, but it's been our dreams to go back.

Well, it's not your family's decision. Right, right. And so the military is no longer moving us after this, so we finally will not be buying, you know. So they're going to move you this time. He's going to finish his tour and take a different career path. Yes. So that you stay there. Yes.

Then I would cash out this account, and I would pay cash for a house. And the fact that you don't have a house payment, I would pile up cash really, really fast. If you want to move up a house later, it won't take long to save $100,000 when you don't have a house payment. It won't take long at all. And you can sell the $350,000 and move into a $450,000 and pay cash for the difference. A year or two. It wouldn't be hard at all. Tell your husband thanks for his service.

We appreciate you guys traveling all over the world to make sure the rest of us are safe. Open phones at 888-825-5225. Hey, hold on. I want Kelly to pick up and find out the name of who you talked to and make sure it's not a current person that I endorse because it's not consistent with what we teach. And that's one of the requirements to get my endorsement. I don't want you to have inconsistent information. That's like a lack of integrity to me. You know what I'm saying? It's a problem. So yeah,

I'll fire their butt for doing that as an endorsement. You know, it's just crazy. This is the Dave Ramsey Show. Sarah is in North Carolina. Welcome to the Dave Ramsey Show, Sarah. Hi, Dave. Thank you so much for taking my call today. Sure. What's up? I have an insurance question for you today.

About 12 years ago, I took out two life insurance policies. One was a $500,000 whole life policy, and the other was a six hundred thousand dollar 20 year term policy since going through SPU I'm looking to cancel the whole life policy but before I did I was just looking for some advice in addition to those two policies I also have a one hundred and ten thousand dollar policy that is no cost provided by my employer. And I have currently about $130,000 in my 401k. So my question is, what is the best strategy to replace the whole life policy since in eight years when the initial term policy expires, I will still have two children living at home.

Okay. What do you make? I make $110,000 a year. Okay. So if we wanted to replace your income, we'd need a million to a million to invest in. Okay. And without the whole life policy,

you would be at $740,000, counting your 401K. Okay. Yes. at $740,000, counting your 401K. Okay? Yes. And you've got the other policy that's running out. It's expiring. So, you know, are you in good health? Yes, thank God, yes.

You smoke? No. You overweight? No. Okay. Because those are the things that kill you on policy. Pricing. Yes.

Pricing drops way down if you don't smoke. It cuts in half. And if you're not obese. So it's a big deal. How old are you? 36. Oh, wow. Okay.

Yeah, half a million dollars if you go to ZanderInsurance.com more on a 15-year, it's not going to cost you hardly anything, especially compared to what you're paying for that stinking whole life policy. Yes. Yeah. So net, net, net, you're going to end up adding money to your pocket and having as much insurance, and you're in good shape. I mean, are you married?

I am. Okay, and what does he make uh he makes uh close to 60 a year okay well so if something happens to you if he had two five hundred thousand dollar policies 130 and savings and 110 from work um he'd be sitting in pretty tall cotton yes and i think when you price that out you're going to find it to be about the cost of a pizza okay and so your recommendation is a five hundred thousand dollar term for 15 years i just made it up yeah i mean oh okay i mean you can play with different numbers if you want to play with them but you the point is we need to replace your income and as your investing grows your children get closer to leaving or leave age and as your investing grows, your children get closer to leaving or leave age.

And as your debt goes away, those are the three variables, your need for insurance goes down. Okay. Because let's pretend you had a million dollars in mutual funds and no kids at home and no debt at all, including the house. We wouldn't need any life insurance, right? Yes. Because you would have become self-insured by getting the kids out of the house, having no debt, and having a pile of money. And so what we're trying to do is create the gap or cover the gap between that until you get there. Now, you said six years left on the 500, right?

Eight years left on the 600. Yeah, the 600 is the term. Oh, 600 is the term. I got it backwards. I'm sorry. Yes, sir. Okay years on the 600. Yeah. The 600 is the term. Oh, 600 is the term. I got it backwards. I'm sorry. Yes, sir. Okay. Um, okay.

So after six, after eight years, that goes away. But eight years from today, you're going to be in so much better condition. And how old are your kids? Um, my daughter is nine and my son is four. Okay. So you would have a 12 year old and one gone. Uh, yeah. Yeah. 17. Yes. nine and my son is four okay so you would have a 12 year old and one gone uh yeah yeah 17 yes almost gone yes yeah are there abouts and so i mean and again if you're following our stuff you're probably 100 out of debt by then and you probably because you're sitting here with 170 000 household income today to be able to knock out your mortgage and your

other debts and build up you know build up your 401ks and that kind of stuff. So that's the point is this is a, your need for insurance should be going away as your children age out of the house and as your debt goes away and as your investing goes up. And that's just basic, you know, basic financial planning. So that's why I would, you know, do a 15. It gives you plenty of pad because you can cancel it anytime you want. And really, when you price it out, you're going to see it's not.

Go to Zander Insurance and price out another 500K for 15 years on a 36-year-old that's healthy. It's just not that much, female particularly. Hey, thanks for the call. Open phones at 888-825-5225. Alex is in Michigan. How are you, Alex? I'm very nervous. Hello, sir.

How are you? How can I help? So I have a question. My aunt funded my college through a loan, and when my husband was laid off, the severance package was able to pay off the remaining chunk of that. And she told us, well, just keep it and put it into a college fund for your three kids because that's what my great-grandma did for her, and she's continuing the tradition. But she also said, in case I said in case i need it somewhere you can

grab it and i oh i know we both think that the likelihood of her needing it because she is so financially savvy and conservative it's very low but i'm also kind of nervous so it just kind of makes me go oh yeah you know i just told her to keep the money. Well, it's sitting in my bank account. I know. I'd send it to her and tell her to keep it. Look, because if you might need it back someday, that's not like a gift. I can't invest this for my kid's college, which is what you requested, and keep it liquid for you to use.

These aren't options. Once I put it in their name, I can't give it back to you. Well, and that's what i was wondering like maybe i should put it into like a generic mutual fund instead yeah i think maybe she needs to take her hands off of it or put her hands on it one of the two you can stick that dog on her if you want but um the uh but i mean seriously oh my gosh you know she either she needs to paint or get off the ladder okay and i'm that's just rude if you're going to give somebody money give them money if you're not going to get money don't give them money but this thing you're like but i might need it back what in the crud is that so now i would just say i can't invest it well

under these circumstances so i'm going to return it to you. Well, then just don't worry about it, okay? I won't worry about it. And this won't come up again because I'm not going to give it back to you. And then I'd put it in a 529 for your kid in good mutual funds and let it grow tax-free, which is where it should be in the first place. All right. Justin's in Wisconsin.

Hi, Justin. How are you? Hi, Dave. Not too bad. Thanks for taking the call. Sure. What's up? Just a quick question. So I'm calling to see if I should continue contributing to my retirement account. So right now I'm in a position where I signed the paperwork to buy the company that I'm kind of like it's a setup where I get 49% of the income, the net income until we reach 49% of the purchase price. So the net income gets deducted from the purchase price.

But once I reach that 49%, I have to pay the remaining cash. So in about four years I'm anticipating, I'll need to pay about $400,000. Good Lord. Sounds like a trap. What is the net profit on this business? Yearly we do about a little over $200,000. Profit? Correct. Okay. You need to save everything in sight because

you have a four hundred thousand our train coming through your front door true yeah so I guess is it worth you know stop because right now I max out my simple I would stop everything I would stop everything and pile up cash because you're gonna need four hundred grand once you have four hundred grand and you pay do then you pay this guy off and you're done then you can start your side investing but your primary investment right now is your business okay and man this is uh this is called a balloon note this is a yeah i mean you stepped into a snare and you're just hoping before he pulls the string on it you can get it you can step back out of it. This is really dangerous.

Really dangerous. I mean, if profits go down, you're screwed. So you've got to throw everything at the kitchen sink at this thing and get this cleaned up. Wow. Bite. Ouch. This is the Dave Ramsey Show app on your smartphone.

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