The Ramsey Show - App - Make Your Own Independence Day (Hour 1)

Episode Date: July 2, 2019

Take control of your money once and for all. The Dave Ramsey Show offers up straight talk on life and money. Millions listen in as callers from all walks of life learn how to get out of debt and start building for the future. Check out the fifth most downloaded podcast of 2018!   Tools to get you started: Debt Calculator: http://bit.ly/2QIoSPV Insurance Coverage Checkup: http://bit.ly/2BrqEuo Complete Guide to Budgeting: http://bit.ly/2QEyonc Interview Guide: http://bit.ly/2BuGnZE     Check out other podcasts in the Ramsey Network: http://bit.ly/2JgzaQR 

🎵 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. Welcome, America. We're glad you're here. Welcome to the Fourth of July week where we celebrate our independence. We want you to personally celebrate some independence. Maybe you become independent of your master, master card. Maybe you become independent of Sally Mae and you kick the old woman out in the street where she belongs.

Maybe you become independent of that car payment that you've had since God was a boy. Unbelievable. It's time. It's time for your independence. And that's what this show's about. It's about you getting control of the controllables. There's a lot of things in life you can't control, but an amazing amount of them you can, just by making better choices,

making better decisions. That usually happens when you have information and a different belief system than the one that led you into stupid. I believed some things that were, I believed some things to be true that weren't true, and they led me into stupid. Stupid with lots of zeros on the end.

And I got a PhD in DUMB. I went completely broke in my 20s, lost everything. And God gave me the opportunity to start over with nothing. After having become a millionaire by the time I was 26, starting from nothing. So I'm so dumb, I had to do it twice. Surely you can do it once. And we'll show you how. The process of handling money, the process of looking in the mirror and saying the bad news is you're the problem.

Good news is you're the solution. And you can decide what to do you can decide that you're not going to believe your broke friends when they start giving you financial advice broke people giving you financial advice is like fat people giving you diet advice come on think about it it's not a plan i mean if you hire a personal trainer and they walk in there 450 pounds we got a problem. Unless you're wanting to be a sumo wrestler, there's an issue, right? I mean, that's not who you want training you on that. And that's like your broke, stupid friend who's deeply in debt giving you financial advice. He doesn't mean to be stupid.

She doesn't mean to be stupid. But we've all been stupid at one time or another on different things, haven't we? And they're just in their stupid time. It's their stupid season. And you don't listen to people when they're in their stupid season you've been married 14 times i hope this one works but i don't need your marriage advice ever you know it's okay i mean you know all your kids are in drug rehab i'm sorry i'll pray for you uh but i don't want your parenting advice okay know, what you've been doing hasn't been working. So let's try to figure out what, find somebody that's doing something that's working and just emulate that.

Copy that. Do what they do. In business, we call that best practices. We find a marketing solution that's working in another place, and we just bring it over here and do it over here most ideas aren't really that new nothing on this show is new i didn't invent any of this this is god's and grandma's ways of handling money i stole it from both of them i'm just good at delivering it for 30 years and when you have common sense intersect your life, truth as opposed to lies told to you by a politicized culture

with an agenda to get elected, when you have truth and common sense intersect your life, it changes the trajectory of your life. It did mine. Changed my life forever. I've never been the same thank goodness that's where i was sucked you don't want to be there you know so i had to change but the good news is i get to decide to change the beauty of fourth of july is it reminds us that some

some guys with really long muskets and excellent aim gave us our independence and so we're free and free is you get to decide i hate my Well, get a different one. Why stay? Work your whole life and 38 years later spend every week saying I hate my job? Change. Change. I don't like where I am financially.

Good. I'm glad you're here. I'll help you. Change. But you're going to make different decisions, and broke people are going to make fun of your financial plan, and a culture that's lost its ever-loving mind might not have deep respect for you. Who gives a crap? Normal sucks.

You don't want to be normal. You want to be weird. You don't want a normal marriage. Have you seen people? I don't want a normal marriage. I you seen people? I don't want a normal marriage. I want my marriage to be way beyond normal, way over in the land of awesome. You know, that's where I want to go.

I don't want normal kids. I've seen some of your kids. You know? You don't want normal. You don't want to conform to people that are losing. Be not conformed to this world, but be transformed by the renewing of your mind. And that's what we do here. We show you that you have choices.

We remind you that you get to decide. Sometimes things interrupt your plan. Life happens to your plan i get that but at least by god you had a plan i was driving along the interstate the other day my truck quit working hadn't happened to me a long time i haven't been broke down on the side of the road a long time i pulled over transmission was spinning out of the thing and i um put up in park and it grabbed it when i put it back in gear enough to limp off the interstate, get it back over here to the parking lot. You know?

But you get to decide how you're going to react in these situations. Life is going to happen. I don't get to decide if the transmission goes out. I do get to decide how I'm going to handle it when it does. I don't get to decide if somebody gets sick. Sometimes you don't get to decide if you lose your job. But you do get to decide how you're going to react. And when we went broke, you know what we had?

We had some never again moments. Never again will American Express call my house unless it's a wrong number because i will not be doing business with any version of anything this is american express after the way they treated me my wife and our family when we were going broke and lost everything we owed the money legitimately but the abuse that they heaped on us was unbelievable. The abuse that Chase and Discover and First Card heap on some of you is unbelievable. So have a never again moment. Don't put yourself in a position where you ever have to talk to those morons again.

We don't have bill collectors calling our house. You know why? We don't have bills. You know why we made choices to not get in those positions ever again. Life's too freaking short to put up with that. You get to decide. Have your own Independence Day. And I'm not talking about Will Smith. I'm talking about a revolution. There's no

aliens involved in this discussion. This is a revolution in your house. A revolution between your ears. It's time to revolt, America. This is the Dave Ramsey Show. Are high health care costs getting you down? Are you confused trying to navigate your options? Do you wish you could find an affordable affordable biblical solution to your health care costs? Based on New Testament principles, Christian Health Care Ministries, or CHM, helps Christian families, churches, and ministries join together as the body of Christ to share their

major health care costs. Christian Health Care Ministries is the original health cost-sharing ministry, a Better Business Bureau-accred organization, CHM members share to pay each other's medical bills. It's not insurance. It's Christians financially and spiritually supporting each other. It's what Christian Healthcare Ministries has done for over 35 years. And our members have shared over $2.5 billion in medical bills. To learn more, visit chministries.org. That's chministries.org. Thanks for joining us, America. This is the Dave Ramsey Show.

Open phones at 888-825-5225. Chris is with us in Washington, D.C. Hi, Chris. Welcome to the Dave Ramsey Show. Hey, how are you? Better than I deserve. What's up? Great. Currently, I live in the D.C. Hi, Chris. Welcome to the Dave Ramsey Show. Hey, how are you? Better than I deserve. What's up? Great. Currently live in the D.C. area. Housing market is obviously pretty crazy right now.

Yace and I are getting a little bit nervous that if we don't buy soon, prices will continue to explode. Currently, we pay $1,700 in rent. We have about $60,000 saved towards a down payment. Most houses in the area that we live in are about $400K to $440K in that range. I wanted to really get your advice on should we continue to rent or should we buy? Are you out of debt? Completely out of debt. Good. And you have an emergency fund in addition to your $60,000 down payment? Yeah, I have about $17,000 saved in emergency fund.

I would buy. Cool. I would buy on a 15-year fixed where the payment is no more than a fourth of your take-home pay. Okay, great. That sounds great. Yeah. And, and you know if you do all that now you may not be putting 20 down on your first home purchase which means you're going to have pmi that's not the end of the world it's just expensive pmi's private mortgage insurance you do want to do a fannie may loan a conventional loan and pmi will cost you about $75 a month per $100,000 borrowed, and you're going to have $350,000 plus borrowed, $370,000 borrowed if you do a 440, right, or 400 minus 60 before 350, so somewhere in there. So, you know, your PMI is going to be expensive because you're not putting down 20%.

I think the biggest thing that we get concerned about is, and I know we should do a 15-year fix. Do not buy a house if you don't do a 15-year fix. Okay. You do not get a pass on math just because you live in Washington, D.C. That makes sense you're going to need to get your house paid off in the next 15 years or 10 years if you want to build a net worth of a million dollars or greater all of our data points in our millionaire study indicate that so i'm with you buying a house without a full 20 down you've done a great job getting to where you are be conservative don't get house fever you can put yourself in a position where

your house poor and you're stuck the rest of your life and you can rationalize your butt off by living in an expensive market to do this and you'll find something that's just the perfect house and it's the dream house and that's all that and it's none of that it's a stupid house it's just a house don't let the thing end up owning you, dude. Lindsay's with us in Denver, Colorado. Hi, Lindsay. Welcome to the Dave Ramsey Show. Hi, Dave.

Thanks so much for having me on the show. My pleasure. How can I help? Yeah, so I am a single mom, and I just did Financial Peace University at the beginning of this year, and I'm happy to say that I've gotten about $13,000 out of debt. Way to go. And so I'm finding myself, yeah, I'm at the very end of this baby step number three. So I'll be out of baby step number three in the next month or two, and I'm super excited.

So thanks for all of the wonderful things that you're sharing in your program and your phone calls and everything. Cool. all of the wonderful things that you're sharing in your program and your phone calls and everything. Yeah, so my question, as I'm preparing to get into baby step four, five, and six, I'm looking at retirement, and I'm a school teacher, and right now 8%, I have kind of a mandatory 8% of my income goes into PARA. And I'm not, I guess I'm wondering, as I'm bumping that up to 15% once I get into the next baby steps, what do I do with that? Do I bump up my para? I'm not really, I guess I don't know a whole bunch about para. Do I open up another account that will get me, you know, a better return of my rate for my retirement? Yeah, I would go open up a separate

account. I'd do a Roth IRA with a good SmartVestor Pro for the first $6,000. If that still doesn't get you there, in addition to Para, do they have a 401K? No. All they have is the pension plan. Well, I guess that's what I'm enrolled in. I probably need to look at that more. I'm not sure, but no, I just have my Para. Okay.

All right. Well, look at the 401k if they have one. If they do and they have a Roth 401k, you can put some there, especially if they match. But no, I would not add to the para. I would not jump into a teacher retirement plan and add a bunch to it. You don't have any control over what it's invested in, and they have all kinds of control over you and when you get your money and how you get your money so i'm going to minimize that and maximize investments that i have control over what it's invested in and when i choose to access it um and that's going to be roth iras and 401ks if you have

it and 401ks with a match and roth 401ks would be high on my list with a match so right in there and you're looking for the mutual funds and looking to get with the SmartVestor Pro, just like you learn in the mutual fund lesson when you're going through FPU. Very cool. Hey, thanks for joining us. Open phones at 888-825-5225. Max is in Knoxville.

Hey, Max, welcome to the Dave Ramsey Show. Hi, Dave. Thanks for taking my call. Sure. What's up? So I've got a couple of questions for you. I've got a wife and two small kids, and we just found out that we're going to be blessed with another one on the way coming January.

Awesome. And I just started following you in the last couple of months, and I've kind of jumbled around everything throughout on my own. But where I stand, I'm not sure where I stand in the baby steps as I kind of read them, but I have about $80,000 in cash. Good. And I'm trying to decide how much I should start putting away for my three children for college funds. Very good. Okay.

Good for you. What's your household income? Right now it's about $270 to $290 a year. Ah, you're killing it. Well done. What do you do for a living? I'm in the sports industry. Okay.

Good. Cool. All right. So what I would do is um the the baby steps one through seven sound like this a thousand dollars saved you've obviously done that as baby step one two has become debt free other than your home do you have any debt other than your home no i've actually got my home paid off as well okay the only the only debt i have is i have a farm um and i keep that separate as a separate

business more or less how much do you owe on the farm about 350 000 okay i'm putting that out at like i would with your home out at what we call baby step six i'll get there in a minute so you're debt free you need an emergency fund set aside of three to six months of expenses grandma's rainy day fund okay right and um if you're doing what i'm guessing you're doing you need an emergency fund because things are either going super good or you're unemployed sure i did guess. Okay, good. And so you need a good emergency fund, a good rainy day fund that you never touch for anything except for survival when bad things happen, like extended terms of unemployment, as an example. Okay? So once you've got that in place, do you have that in addition to the 80, or the 80 would

include that? No, the 80,000 would include that. So we would pull aside maybe 40 of that, or 30 of that, or something like that, and call that our survival fund, our emergency fund. Let's pull 30 aside for purposes of example. That leaves us an even 50 to work with. Then that brings us to what we call baby steps four, five, and six, when we teach to do those simultaneously.

Four is you're investing 15% of your income towards retirement and wealth building. And so you'd max out 401Ks backdoor roth iras in your case um those kinds of things you get with an investment professional and you start putting aside um you know like 50 grand a year in your case like 15 of your your income and so um you get and so you're systematically investing because you don't want to make this much money and end up at the end of your life broke. Baby step five then is we start putting some money towards kids' college. And that's the time we start talking about this $50,000. I probably am going to use that if you haven't done anything yet towards 529s. And you might sit down with the same investment professional and lay out a 529 plan to invest with that.

Above that, next time you see some money beyond this $50,000, in other words, we're going to use that for the college. Beyond that, I'm going to start putting money towards that farm and get it paid off. Because it would be really cool to have your house and your farm paid off. And you make enough money to do all of that. Good job, Max. We'll be right back. Josh and Emily are in Phoenix, Arizona.

Welcome, guys. How are you? We're good. How are you? Better than I deserve. I see on my screen you're debt-free. Congratulations. Thank you.

Cool. How much have you all paid off? We've paid off about $109,000 in total. Woo! How long did this take? Took about four and a half years. We had about a nine-month break in between, but all in all, about four and a half years. Okay, cool. And your range of income during that time? Starting from $65,000 and ending at about $121,000. Wow, cool. What do you all do for a living? starting from 65 and ending at about 121.

Wow, cool. What do you all do for a living? I'm in architecture. I work for a home builder. Oh, good. I stay at home with our kids. Okay. Tell me your story. What was the nine-month break?

A baby? No, no. We had started listening to you. We heard about you from my parents. They were in the car a lot at the time when you would come on and just started. They listened to you and then started telling us about you. And then we just kind of stumbled into you also and, you know, would listen. And you were entertaining.

The callers were entertaining. And we were just kind of going along like normal people. We had student loans. We had credit cards and no big deal, but just making too much to be that broke. Yeah. We just heard a story that just kind of stuck with me. We were helping this guy decide when to buy a car and what kind of car to get and with his income and it just kind of stuck with me and i decided

you know we need to try this because we're we're not we're just spinning our wheels we're not doing anything yeah okay cool and yeah so um about about four and a half years ago, we decided to get on your plan, and we made a budget, and it was really ugly but doable. And in exactly two years, we paid off about $21,000 in student loans, $16,000 in family loans, $900 in credit cards. Wow. And then $3,200 on braces. And we needed a breather. And then we decided we were going to tackle the house. So we paid off $68,000 on our house.

Oh, wow. This is house and everything. It is. That took a year. Look at you. Okay. Well, yeah, you're supposed to take a breather. When you hit the baby step four, five, six, you're supposed to slow down a little.

But you let your foot off the gas a little bit and then stomp back down on it, huh? We did, yeah. And what was kind of funny is about two years ago we went, we got free tickets to a smart money event. So us and the two kids went and saw you, saw Rachel. We got to meet Rachel, got to meet Chris Hogan, saw Ken, got to meet George Camel. And at the time, we told George, George, we're going to pay off our house in October of 2021. So just wanted to let him know we did it, but a little bit early. A little bit, you think?

Like two and a half years early. Wow. Yep. Way to go. Boom. Thank you. Well, congratulations, you guys. How old are you two weirdos?

I'm 38. Uh-huh. I think I'm 40. You're almost 40. You'll be 40 in December. I have quit keeping up with it, too, brother. Well, congratulations, you guys. How does it feel to not even have a house payment?

It's amazing. What's this house worth? I don't know for sure, but I think about maybe $230. Wow, very good. Conservatively, yeah. It was sold to us by my grandparents, and they gave us a great deal on it, and we couldn't have done it without them. Are you in Phoenix or in the suburbs?

We are. We're in north central Phoenix. Oh, yeah. Okay. Cool. Well, way to go, you two. Thank you. Wow.

How does it feel to not have a payment in the world? It's amazing. Fantastic. Was it worth all of that struggle? It was. Absolutely. It's hard. We've been able to give like we haven't been able to ever.

And the kids are getting older. My daughter's almost 14, and our son is 11. And, you know, teenagers are expensive. And, you know, she's able to go to church camp. She's able to do activities with her friends. We couldn't have done. We couldn't have helped with $20 here or there for our church previously, and now it's not even a second thought.

We don't even have to think about it, and that's been the best. Yeah, and they're going to college too without debt. Yes, yes. Yeah, that's next. I love it. Well done, you guys. Very, very well done. I'm so proud of you.

Good job. Thank you. Who were your biggest cheerleaders? Probably, we didn't talk about it a ton. My family and our close friends, they all knew what we were doing. Didn't totally get it but we're very supportive but you know just okay that you know whatever and josh's co-workers knew you know he had a he had a an allowance for lunch and you know the joke was you have a coupon for for this restaurant you you know and when he'd say no they'd be respectful that you know nope i don't have the money can't go can't go to lunch so yeah that was but but you have a paid for house we do we like being weird yeah i think i can give up a lunch yeah yeah normal normal was not fun

yeah yeah you decided to not live that way anymore i'm so proud of you guys very well done thank you we got a copy of chris hogan's book for you, Everyday Millionaires. You are well on track to be one. And no question about the direction you guys are going. You're making more money than you've ever made in your life, and you're in a better shape than you've ever been in your entire life. And it's all because you made choices. You guys are heroes. I'm so proud of you.

Thank you. Thank you. All right. It's Josh and Emily, Phoenix, Arizona. They paid off $109,000. That's their house and everything. In four and a half years, making $65,000 up to $121,000. Count it down.

Let's hear a debt-free scream. Three, two, one. We're debt-free. I love it. That is how it's done. Well done. Well played, you guys. Very, very well played.

Open phones at 888-825-5225. Debbie is in Peoria. Hi, Debbie. Welcome to the Dave Ramsey Show. Hi, Dave. Hi, what's up? I'm so glad to talk to you i have a bunch of medical bills i've had a life of a lot of mistakes and a lot of medical tragedies

but i'm alive so that's a good thing good yeah how old are you i'm 46 okay Okay, cool. How much medical debt have you got? Just, well, medical debt in collections is $3,900. Okay. And how much other debt? Other debt, I'm $2,100 on a car. It's upside down. It's probably worth $13,000. I make $40,000. You said $2, hundred and it's thirteen thousand i'm sorry twenty one thousand i was thinking okay all right yeah all right after my heart transplant six years

ago five years ago i started to go back to school because i didn't think i'd ever be a pharmacist again i didn't think i could ever do it so I'm halfway through a master's program that I'm never going to use. I now owe $26,000 in student loans. Are you back to being a pharmacist? No, I'm not. I'm working as a mental health associate and I'm a real estate agent and I'm applying for jobs. Did lose your did you lose your certification on pharmacy no no i didn't i kept it active it's just i've always been retail and i broke my leg three years ago i didn't walk for two and i've been walking for a year getting stronger so what's your household income right now i can stand for 12 hours in a retail pharmacy right now i don't

think you stand right now about. Right now, about 45. You make $45,000 a year, but you could make $130,000 as a pharmacist. Yes, yes. But you don't have to stand for 12 hours to do it. Oh, I'm going to make $200,000 in about five years. That's my goal. No, no. Not as a mental health associate. Oh, okay.

By doing what? I don't know, but something. Pardon? Okay. By doing what? I don't know, but something. Anything but pharmacy. I love pharmacy. I love the health care aspect of it. I'll tell you what. You hold on.

We come back from this break. We'll walk through your situation, see if we can give you some ideas. This is The Dave G. Show. We're talking with Debbie in Peoria. She's got a $21,000 car note, $26,000 in student loans from a master's degree. She's not completing and finishing. She is a certified pharmacist but is not working in that field, is in real estate, and doing some mental health associates work, has $3,900 in medical debt in collections. So is that a fair summary of what you told me so far, kiddo? Yeah.

So you said you're going to make $200,000 a year in five years, but you don't know how. Yes, I do, but you're going to give me heck, and and once i say this on the air then it's out there in the public there's a bunch of financial advisor training programs that are interviewing me based on my resume okay they find it interesting i mean you can be a financial advisor if you want i don't care i'm not mad at financial advisors i actually endorse a bunch of them i don't listening to you i mean it's like i mean if you're gonna go sell a whole life i'm gonna give you a hard time that's not a financial advisor that's an insurance salesman but if you're gonna go do actual financial advising of actual you know real investments then you know

you'd be on our team. So that's cool. Good, good, good. Here's the thing. You have to get your income up or you've got to get rid of this car. This car is killing you. Yes. On a $45,000 income, a $21,000 car does not fit. No, it doesn't.

Okay. And you've got to get yourself on a budget. Get on every dollar. Because you don't have debt that's killing you here. And let me ask you this. While you're making your transition, aren't there some part-time pharmacy gigs? Yes. Yes, relief pharmacy.

The one program I'm really interested in is they're going to pay me basically minimum wage to train six hours a day, two hours working clerical, but six hours in class. They pay me 40 hours a week. I'm still going to have my Medicare, but it's, you know, it's going to be tough. It's still going to average, you know, $45,000 a year. But I'm going to have to find something I can do at night and things like that. Yeah, I mean, you could do night and weekend pharmacy work and make $50,000 a year.

Yes. And use this fabulous degree you have. I'm not saying you have to do something you hate the rest of your life, but there's a lot of ways to be a pharmacist that does not involve retail 12 hours a day on your feet. You're right. You're right you're right yeah let's let's use that to make some money because 50 grand a year added to your 40 fixes all these problems doesn't it yes yes it does and that so you what you've got is this income issue because you're in transition and because you just completely

abandoned your biggest income producing opportunity uh and that's okay long-term, but temporarily you need to plug back into pharmacy at some level, part-time or otherwise, to get your income up. To be able to get these, you know, a $3,900 bill shouldn't be bothering you when you have the ability to make $100,000 a year. And so that's what's going on. It's a shovel issue. You need a bigger shovel, a a bigger income and the great news

is that opportunity is right in front of you katrina is with us in boston hi katrina how are you i'm good how are you better than i deserve what's up great so i also need to walk through a situation i'm my husband and i currently on baby step number two, and I will be being laid off in about two to three weeks. Okay. How long have you known that? About a week. Okay, cool. So have you got your new job lined up?

Not yet. No. You've had a whole week. What do you make a year? I should have one by then. I make about $130 a year. What do you do? I'm should have one by then i make about 130 a year what do you do um a recruiting manager oh great yeah you probably in this hot economy where jobs are so precious you're right you probably will land something very quickly don't you think i could but i wanted to um

work for my husband's business that could potentially make about $160,000 the first year. He does elderly transportation, and the first six months will probably be touch and go. And I'm getting a package which will, in my hand, I'll have about $42,000 cash. So I'm trying to figure out what to do with that $42,000 cash. Should I hold on to it while we ramp up his business? What are you going to be doing that you're going to add $160,000 to his elderly transportation business income? So I will manage all of the drivers through the dispatching. I'll get the additional contract for him, things that he hasn't been able to really focus on because he, too, has a full-time role, and I have more of that sales.

I have also a sales background. Yeah, you would have. Yeah. As a recruiting manager. Okay, so you're going to go get more business. And what is his current top line? What's his revenue in his business? So he hasn't done it in a year the year that he did do

it it was about 70k how in the world do you think you're going to add 160 to something that you've not done in a year and the last time he did it the best year ever was 70 you're going to triple his income quadruple his income on a business that's been dormant for a year. Double it. Double it. No, 70 doubled is 140. Oh, you're saying we've got nothing coming in, so you're going to take the 70. You're not going to add 160 to the 70.

Okay. Correct. Correct. All right, so you can double it. Yeah, you probably can, actually, if you think the market opportunity is there, and I assume you do. I'm already on it. Yep. Yeah. okay.

And so we have $300,000 in debt right now. On what? $230,000 is my home. Oh, okay. And then we have student loans for about $42,000. I owe taxes for about $10,000. Why? And then, you know, I owe taxes every single year.

I think because some of the sales work that I've done, I haven't properly distributed my taxes. Yeah, you need to get a little tax advice so you don't stay behind the eight ball with the KGB, I mean the IRS. So let's get that fixed. Let's hold your 42 severance over on the side as an emergency fund because you're doing a startup from ground zero, and you're probably going to use it to cash flow your house.

Yep, and that's what I was thinking. And I also have two children in college right now, and we pay for college out of pocket for them. You've got a pretty short fuse on this bomb to get this thing moving. Yeah. Okay, so you think it's wise to... Yeah, I would not use it to pay off debt. You need. Yeah. Okay. So you think it's wise to... Yeah, I would not use it to pay off debt. You need the money. Okay.

You're going to use... It's going to take you a little while to get even up to 70 again. Mm-hmm. Income. And, you know, it'll take a while to get back up to where you were. So your household is going to take a hit

that's probably going to be larger than $40,000. Yeah, well, I was also thinking in between the sales, I can do contract work, and I usually get paid $50,000 to $60,000 an hour to do contract work. That would be great, yeah. So if I can supplement the income, I can do part-time contract work. Anything you can do to keep from burning the 40 000 severance before your but you know because if you burn that and you haven't got the income back up and your household

still set up at the old income you're going to be in a mess right you know so figure out what your burn rate is if you're burning four grand a month um you know your husband your husband's husband income you can survive 10 months and and after that you've got a problem. And so look at your burn rate and go, if we're burning 10 grand a month, you've got four months. Yeah, it's 5,000 a month that we're spending. So we've been following your plan for about seven months now. Yeah, you're calculating it out.

Okay. But the point is, I like that as an entrepreneur and a salesperson, which you obviously are both. Okay? It gives me a reason to beat the burn rate back. Right? Yeah. I mean, it gives you an instant goal for your contract work and for your sales process on the elderly transportation thing. And so you know what you've got to make, and it causes you to bust out of the cave every morning and go kill something.

You got it. You got it. You can can do this you can do it you just got you just don't just don't make optimistic assumptions about the money make pessimistic assumptions about the money make optimistic assumptions about what you can do okay and do you think i should take my little 401k that i have it's 15 000 or should i just leave it I would always roll a 401k when you leave to an IRA. So get with a SmartVestor Pro and do that. And don't touch it. That's your last case scenario is to ever touch something like that. But, yeah, get the income moving, kiddo.

And I think you've got the ability to do it. It sounds like you do. Just listen to the way you're, you know, even the structure of your sentences. I believe you. sentences i believe you so i believe you can do this go get her done that puts this hour of the dave ramsey show in the books our thanks to james childs our producer kelly daniels our associate producer and phone screener i am dave ramsey your host and we'll be back. Hey, it's Blake Thompson, Senior Executive Producer for the show. You know, you can listen or watch anywhere with the Dave Ramsey Show app on your smartphone. Catch the full show or watch the highlights and check out Dave's upcoming guests.

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