The Ramsey Show - App - Making History: $500,000,000 to Scream About (Hour 3)

Episode Date: June 20, 2019

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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 a paid off home mortgage has taken the place of the BMW as the status symbol of choice. I'm Dave Ramsey, your host. Thank you for joining us, America. We're glad you are here. Open phones at 888-825-5225. That's 888-825-5225. Adam starts off this hour in Tulsa, Oklahoma. Hi, Adam. Welcome to the Dave Ramsey Show. Dave, it's an honor to get to talk to you. You too. What's up? So my wife and I are 100% debt-free, and we are saving up for our celebratory car.

I was just wondering your thoughts on courtesy vehicles, the loaners that dealerships give out while you're getting your oil changed, then they sell with a couple thousand miles on them. Don't know anything about them other than I've seen them on the road, I guess, like you have. I would assume they've had a lot of miles put on them in a short period of time, city driving, right? Yeah, they usually sell about a year old with about 5,000 or 6,000 miles on them, and they're usually about $5,000 or $7,000 cheaper than a new one. Okay.

I guess if you can find one that's exactly what you want and in good shape, I don't have a problem with that. And, of course, we don't buy brand-new cars around here unless you've got a million-dollar net worth or grade. Right. So, yeah, you'd be buying a used car, obviously. How much are you talking about spending on this car? About $40,000.

Okay. And your household income is what? About $85,000. Okay. So the other car is worth $5,000? I have got a company vehicle. So you don't have another car? Okay.

No. So it's a one car family and you're gonna spend 40 grand on a car making 80 all right and i assume you have the cash yes okay um okay and you have your emergency fund obviously yes okay is your home paid off it is oh okay i misunderstood i thought you said your baby's step four. Okay. Cool. Yeah, I got no issue with this.

Yeah, pay cash for it and whatever you want to do. I don't have any background or any knowledge on that particular method of buying a car. I mean, it's kind of like buying a demo, I guess, is in a sense what it is. But, you know, it does fit in the guidelines that we give you, you pay cash and it's your total of your vehicles is less than half your annual income. And that's right where we tell you to be. And if you're not a millionaire, we don't buy brand new cars. So me and error after, if you want to spend that much on a car and it goes down in value,

you can afford to take the hit. But prior to that, you can't. So that's the whole thing. So, Hey, thanks for calling. Guys, here's the deal. Here's the thing to think about, okay? I love cars. I got a bunch of cars. I like them, okay?

I'm just a classic boy. I like cars, okay? I mean, when I was seven years old or five years old in the backseat, I would turn a pencil eraser into a car. Right? I mean, I'm that guy, right? And so I'm with you if you want a nice car you like nice cars you're you know a guy sent me a link buddy of mine sent me a link this morning the new mustang that's 750 horsepower oh wow that's just a rocket ship that's so fun. I like cars.

I'm okay with you having a car. The thing is, you just have to use some common dadgum sense about vehicles. Because 99.9% of them go down in value. And the other 0.1% are classic cars that you're buying and you know something about buying them in an investment situation. But 99% of things with wheels on them and motors in them go down in value the typical new car will lose 60 to 70 percent of its value in the first four years that's a 32 000 car that becomes worth about 10 000 in four years so every four years you're taking twenty two thousand dollars and burning it with a cigarette lighter flames a bonfire gone twenty two thousand dollars if you're doing that and you

don't make really a lot of money and you don't have any money you are guaranteeing that you're not going to be wealthy when you buy expensive things that go down in value duh it's going to cause you to have trouble building wealth uh or probably keep you from building wealth and so ever driven down through a neighborhood where the two cars sitting in front of the house are almost as expensive as the house? And the whole freaking street is that way? That means that the average person living on that street is 32 years old. That's what that means. And you go down through there, and these are people more concerned about what they drive.

And, you know, you've got two fleece cars sitting there. They've got, you know, a dadgum bass boat in the driveway and it was thirty two thousand dollars too you know and had to have a bigger motor those bass were out running me and so you upgrade in that puppy it's just you know we we all like our toys but your toys are destroying your life so it's okay for for him he's in a good place to buy a car he's in a great place to buy a car and so buy that car there's no problem with that but most people you just have to stop and think you can't you know you can't turn thirty two thousand dollars into ten grand very often and have any money. You got to really make a lot of money to do that. You got to have a lot of money to do that.

Now, you know, if you've got some money because you've sacrificed, you can afford to take some of those hits if you want to spend it on a car. That's fine. And I do. I've got some nice cars and they go down in value just like I'm talking about. But it's a very very very small percentage of my income and a very very very small percentage of my net worth that's going the wrong direction down and so as long as it's a small percentage i can enjoy my boats and my cars and

my truck and different things right they? They got motors in them. But otherwise, I mean, if you guys, if you got a household income of $100,000 and you got $70,000 of rolling stock sitting in front of your house, you're just straight up mathematically an idiot. I mean, you're just stupid because it's killing you. These things go down in value like a rock. That's where Chevy got that, like a rock. And Ford's no better. It's found on the road depreciated.

It's all going down in value. So don't spend your money and don't, for God's sakes, don't go into debt and put large portions of your financial situation, large portions of your income, large portions of your net worth, and things that are going down in value, and then scratch your head and wonder why you're broke. That's why the largest thing most people buy that goes down in value is a car. It's that simple. And the largest thing most people buy is a house that goes up in value.

The largest thing most people buy that goes down in value is a car. And it's a big honking item. So don't let your cars drive you. Drive your cars. Own your cars. Don't let them own you. And then if you'll drive like no one else, don't care what everybody thinks, Own your cars. Own your cars. Don't let them own you. And then if you'll drive like no one else, don't care what everybody thinks,

later you can drive like no one else and don't care what anybody thinks. It becomes a pattern of your life. Pay a price to win. This is the Dave Ramsey Show. You know what I've learned after talking to so many people who have been victims of ID theft? They feel violated and they have a sense of fear and intrusion. It can be overwhelming. It's scary and infuriating at the same time. People question your character.

You try to figure out how it happened and you worry it's going to happen again. Then you have to deal with cleaning up the mess. Bill collectors, credit bureaus, even the police just make the nightmare worse. And trust me, ID theft is not going away. That's why I personally worked with Zander Insurance to develop an ID theft plan that provides the best protection and value. Smart strategies to help reduce your risk so you don't feel so helpless, along with taking over all the work if you do become a victim, and without wasting your money on gimmicks or things you can easily do for yourself. Go to Zander.com or call 800-356-4282.

Do not wait until it's too late and you have to go through this nightmare on your own. Go to Zander.com. Well, if you haven't heard, we're moving our offices. We've been building a building for a couple of years and it's nearing completion. In a couple of weeks, we'll be moving out of this one and moving down to the other one. The new Ramsey Solutions Headquarters. A couple of exits south of our current location here in Franklin, Tennessee, just around the Nashville area. So make sure to make plans. We'll have most everything ready to go in August for you guys to drop by and see us.

We're not going to do any in-studio debt-free screams, in-the-building debt-free screams. After today, in this building, today's our last day to do them in this building, we'll still take some calls during July while we're making the transition on the radio. And then sometime in late August, early september we'll start doing debt-free screams in the lobby and we've got a stage and a very cool place to do your debt-free scream going forward so those of you been looking for forward to your debt-free scream the new location is all set up just for you we built this around a fan experience around you guys and so it's gonna be absolutely lights out it's gonna be so fun but um turns out it takes a little while it's you know when i move i always think

of like moving in college and you throw your stuff in the back of a pickup and in about four hours you're done right and um when you move a thousand people out of a location you've been in for 17 years, it takes longer than that. The logistics of this is blowing my mind. So it's going to take us about three weeks of staged moving to accomplish this. But we'll be broadcasting from this studio still for a couple more weeks, and then we'll start broadcasting from the other studio, and then a couple weeks after that, a few weeks after that, we'll start doing in-studio debt-free screams again in the lobby again

of Ramsey Solutions like it's always been. But in a few minutes, we're going to have our very last in-the-lobby debt-free scream in this building. That's pretty cool. So you guys standing around out there, you're getting ready to witness history. I mean, we've been doing debt-free screams in this lobby since 2002. It's pretty wild. On the phone and in the lobby, since 2002, we've done over 8,000 debt-free screams.

Over $500 million paid off just on the debt-free screams. That's pretty cool, y'all. And that's just since 2002. And really, we don't think we even kept track of it before that. It was just kind of ad hoc, and it was bizarre and all that stuff lots happened during the 17 years we've been in this building but um pretty cool stuff a lot of history here so we're kind of all uh both simultaneous kind of sweet and sour you know it's uh we're excited about the new place and it's all cool but we're all a little bit nostalgic about the old place um but believe me we're moving anyway so so get over yourself uh but make sure you look it up

we're going to have the google maps folks make sure you can find ramsey solutions headquarters easily and beginning in august and uh september and you can come by and visit we'll still have the classic uh free cookies made by miss mel Melissa there in our upstairs cafeteria and free coffee and everything. Still going to have the bookstore up there only. It's all expanded and all bigger and all better and a lot of cool stuff. We're going to have a whole fan experience, places for you to take pictures with your family and with me and whoever's there, whatever Ramsey Solutions, whatever Ramsey personalities are around and all of that. It's going to be an absolute cool environment.

So just put that on your list of things to do beginning in late August and early September as you're coming to Nashville. Stop by and see us. We'd love to have you as a guest in our new home. We want to show it off to you. And a huge museum area, history area. Again, the bookstore's got some very cool stuff going in it. The whole thing's, the whole lobby area is massive, of course,

and it's all planned around you guys. Because we are huge fans of our fans. We're huge fans of you people. You people that work so hard to get out of debt. You've worked so hard to change your family tree. And we built this with you in mind to honor you yeah it's a place for us to get our work done too but this uh it's going to be a very very cool thing that's pretty neat statistic kelly dug up thanks for digging that up kelly

since 2002 debt-free screams on the phone and in the lobby 8 000 of them and about 500 million dollars paid off half a billion and that's just on the phones doing the debt-free screams that's not all of you that paid off and never called in that's the 8 000 people that did it so that's pretty cool y'all that's a lot of money so coming up here at the bottom of the hour uh our last in lobby debt-free scream in this building. So, historic event. Mark it right there on your podcast. You'll want to remember this one and go back and listen to it.

For those of you that care, we know you care. For those of you that don't, we know you don't. It's okay. Life is good. All right. Ian is with me in Boise, Idaho. Hi, Ian. Welcome to the Dave Ramsey Show. Hey, Dave. Thanks for having me. How are you doing?

Better than I deserve. How can I help? Hey, so I've got a couple questions for you. I started listening to you about a week ago. My girlfriend's dad really talks a lot about you, and so I decided I needed to start listening. Right now, I've got a plan to save up for a down payment on a house, and I was wondering, should I pay off my debt first with the money that I have saved up, or is the plan that I have in place, which is to save up the down payment and pay off the debt in the next year, acceptable? Well, if you can do it in a year doing it your way, you can do it in a year doing it the other way. The math is exactly the same. Okay. If you pay off the debt first and then save the down payment,

or if you're doing both at the same time and you can do it in a year, you can do it in a year. Okay. Does that make sense? Yeah, it makes sense. So what we teach folks is this, Ian. The best – I want you to get a house, okay? Owning a home is a key part of building wealth

it stabilizes your your housing cost it goes up in value they're great it's a great thing to own a home but we want the house to be purchased in such a way that it's a blessing and not a curse and sometimes people get so hyped up amped up and out of control you know and buying a house that they buy too much house or they buy it while they're broke or they do those kinds of things and then the house is not a blessing it's a curse because it traps you you know it pins you down into the corner where you can't move and so what we teach folks to do is be debt free have an emergency fund of three to six months of expenses we call that baby step one two and three and then save up your down

payment for your house we call that baby step 3b and once you purchase the house then you start retirement only then but if you've got retirement going right now temporarily stop it until i accomplish those other three goals debt free emergency fund and down payment for the house and um so you know that that's the a process that'll see if you move into the house with no payments except the house payment and you got ten thousand dollars in the bank for your emergency fund after you close on the house you feel at peace that house it's not there's no weight on you then but if you move in the house with three student loans a car payment a boat payment um and no money in the bank after you close you're just

inviting crap into your life you know okay that's the difference and so it sounds like you might be uh preparing to marry this young lady i i am actually i've gotten permission from both um both sets of her parents her parents are separated but remarried um i've gotten permission from them in addition to what i'm saving now um as soon as I'm over PACE, the cost of the ring, I'm going to get it and ask the question. Good for you. Well done. Okay. Then the last thing is don't be in a huge hurry to buy the house.

You don't have to buy it before the wedding. Okay. Because you might pick a different house after the wedding because her voice might change. Okay. She's pretty consistent, and I appreciate that about her. Yeah, yeah. I'm an old man, though, okay? I've seen a lot.

I don't care if you rent for the first year of your marriage and just pile up a huge pile of cash and get to know each other. You will choose a different house after you've been married a while, a few months, than you will before marriage. It takes about a year of marriage to know how close your mother-in-law to buy. Hey, man, I like talking to you. You're a good guy. Thanks for calling in. This is the Daveave ramsey show So as we said before the break, our last debt-free scream from the lobby of Ramsey Solutions.

From 2002 to now, we've had about 8,000 people do phone-in and or lobby debt-free screams to the tune of about $500 million. That's coming to a close as we move to a new location. We'll have a debt-free scream stage there, and it's going to be quite an all-encompassing experience. But we had to decide how we're going to do the last debt-free scream in the old building, where kind of the whole thing started in a sense. Not the whole thing, but I mean, we've done a bunch of it here for 17 years now. And we found out that one of our top team members members one of our top leaders in the organization had just gotten out of debt and we thought that is perfect one of our folks

on the team justin meeker is one of our top technology guys a fabulous world-class leader he's the director of dr.com the director of davramsey.com so everything you see on the website he and his team manage and plan and scope out both the technology as well as the whole graphics process and the whole thing. And the guys and gals that work on his team just love Justin. And we found out he and Jessica had gotten debt-free. We went, that's the perfect one to be the last debt-free scream.

So welcome, guys. Thank you. Congratulations. Thank you so much. You did it. Finally. Yeah. Now, you've been on the team about three years right that's right three years so how much debt have you guys paid off we paid off 102,613 dollars i love it and how long did this take 40 months good for you so you started just just before Justin came on board. Yeah.

It was actually the catalyst that started the whole interview process and everything. Okay. So you're like, we're going to do this Dave Ramsey thing. Wait a minute. He's hiring. Yes, exactly. Okay. About two weeks into it.

Yeah. It's like, okay, cool. Very cool. What kind of debt was the $103,000? It was mostly student loans um we had a car payment and um yeah i think it was eighty thousand student loans okay dad gum y'all were like normal yeah yeah pretty normal yeah and so you've been game on for 40 months 36 of them or so you've been here yeah that's right yeah wow very cool So obviously going to work here isn't

what started this. What started it? Yeah. When we first got married, right after we got done dating everything, we had talked about, yeah, we both have student loans, but never really talked about the implications of that. And so we got married. We had both worked in ministry for a long time. And so when we got into the relationship, we kind of put some of those student loans on hold. We said, hey, let's defer them. We're not making a whole lot right now, so let's just kind of put it out of sight, out of mind. Had a couple other things come up through there. But really what started it all was in 2016, a lot of those deferments were coming up.

And so around January, end of December, we started looking at it and said, oh my gosh, what are we going to do? And it was actually Jess that said, hey, I think I've got something. I've checked out these CDs from the church for this 12-week class from this guy named Dave. We're going to go watch it. We're going to listen to these CDs

and see if this will help us get on track. So it was the DVD program for Financial Peace University. Yeah. We actually felt so lost that we didn't want to spend any money on even a book or going to fpu so we found out our church had a library and we checked it out from them and that's when we started down the road okay and then a few weeks or months into that it's like oh wait a minute they're hiring yeah pretty much it was just a couple weeks after i think i was on the website looking for like a simplified baby steps or just kind of some guidance

on how to do everything and we saw the little we're hiring come up on the side and i was like yeah and we had been talking with my leaders how ironic is it that your husband now runs that web it's a good connection for me and we knew something that had been coming up for probably about four or five months. I'd been talking with my leaders and saying, hey, I don't know what it is,

but God's got something in store for us. I feel like he's going to be moving us along. We just don't know what it is. And so when that came up a couple weeks into taking the class,

we knew that was the thing. That was the thing that was going to get us out of debt and take us into that new chapter of our lives. Yeah. Very cool. very cool.

Very cool. And you guys moved from where? What city were you in? Lexington, Kentucky. Okay, so you moved down here from Lexington. Okay, very cool. All right, I know you had on your team a ton of cheerleaders as you go along. This whole place cheers each other on as we do this stuff.

Outside of company, though, and outside of the two of you, who were your biggest cheerleaders? Yeah, outside of them, I would say our parents, and outside of the two of you who are your biggest cheerleaders. Yeah. Outside of them, I would say our parents, uh, justice parents and mine. And then actually today we've got a couple other family members here with us, some cousins. And,

um, honestly, our children too, like they, they're starting to catch on with what this means and okay, this is a little different. So, um,

but really our parents have been an incredible resource and cheerleaders for us. Very cool. So let's get, bring the kids into an incredible resource and cheerleaders for us. Very cool. So let's bring the kids into the picture. Names and ages. Yeah, we've got Caleb, who is seven, Levi, who's five, and then Zoe here, who is almost three. Oh, look at Zoe. She's a princess.

Yeah. I love it. Very cool stuff. Very cool. Well, congratulations. Thank you so much we're very very proud of you and proud that um you guys get to be the final debt-free scream in this lobby that is just very neat and uh for those of you watching and looking deeply into your radio you probably

can see if you look carefully uh there are people hanging from balconies and conference rooms two three stories up all watching this occur half our company has gathered around to watch this momentous occasion, plus a ton of folks just visiting today. Happened to be here on this day. And so, good stuff. All right, it's Justin and Jessica, Caleb, Levi, and Zoe. That's right. $103,000 paid off in 40 months. Count it down. Let's hear a debt-free scream.

3, 2, 1. We're debt-free! Wow! I love it. And a shower of balloons come down. And Ramsey blue and yellow for those of you, again, watching deeply in your radio. What a fun day. What fun stuff to think about. If you never heard, the debt-free scream originated as a radio accident a lady called me from grand rapids michigan and she was so wired up as soon as i picked up the phone she just verbally machine gun me she's i did it i did it i did dave i did it i paid off my dad dave i did it i had a

garage sale i took an extra job davis on the bushing out in front of my house. I'm dead free. I'm dead free. I'm dead free. And she hung up. And I'm like, what just happened? And, you know, back then we had fax machines. That's how long ago it was. The fax machines started going off the studio. That's the best call you ever had, Dave. And I'm like, what do you mean best call I ever had? I didn't say anything. I picked up the phone and she hung up on me when she was done yelling.

I'm dead free. An old country guy called the next week and goes, i want to do that and we're like what do you mean you want to do what i want to do that debt-free scream thing i'm like what are you talking about he goes yeah like a woman that last week she done she got debt-free scream i'm gonna yell i'm debt free i said well are you debt-free and he goes yeah so well tell me about it, tell me about it. And he told me about it. And then he just gave a great Southern yeehaw, debt-free scream. It was awesome. And that kind of began the thing. Blake Thompson was my producer at that time.

Now he sits on our operating board and runs all production, Ramsey. And we looked across the glass at each other and we went, hey, there's a thing here. People need a place to celebrate. When they have won and sacrificed and scratched and clawed, they need a place to celebrate. And we're going to give them that place. Because when you're living your story, you're the hero. And we want to give you a stage to be the hero. And we've been doing that for a long time, 000 times now on the phone and here in the lobby and that's just since we moved in this building so um half a billion dollars 500 million dollars

and that's just the people we've had on the air it's billions and billions and billions and billions of dollars paid off in debt during that same period of time of you out there that we have no way to calculate it. We don't even know. But if we've got a half a billion on the air, you know it's billions and billions, don't you? So when you're free, you ought to celebrate. And your story doesn't end there. Then you go to the next chapter,

and you start working on becoming an everyday millionaire, where you live like no one else, so that later you can live and give like no one else. Changes everything, you guys. Changes everything. Congratulations, Justin and Jessica. $103,000 paid off in 40 months. We're so proud of you guys.

This is the Dave Ramsey Show. Our Scripture of the day, James 1.22, May the words of my mouth and the meditation of my heart be pleasing in your sight, Lord, my rock and my redeemer. Maya Angelou said, If you don't like something, change it. If you can't change it, change your attitude. Well, there you go. Ron's with us in Pensacola, Florida. Hi, Ron.

Welcome to the Dave Ramsey Show. Thank you, Dave. My question is for life insurance. My wife and I are 50 years old. We have 10 biological children, and we just adopted two foster children out of the foster care system. They are two and one year old. So I have eight children still at the house. And looking at life insurance, I have five years left on a policy I've had for the last 15 years.

And it's a $500,000 policy. And so I called Xander, and they gave me a great quote on a million dollar policy for 20 years. But then they can also then cut it down about another from, you know, $138 to $75 a month for a $500,000 policy. My question to you is, should I go with the million dollar and now we're debt free, our house is paid off, maybe step seven, you know, things of that nature. How much do you have in savings in your investments? We have about $35,000 in savings. In your investments?

No, no, no, no, just in savings. Oh, okay. And there's about $300,000 in IRA. Okay. So that's about all the investments we have right now. Okay, good. All right, so here's the thing. Basically, you've got two babies, so you've got 20 years before they're ready to leave the nest, right?

Correct. Okay. Okay. And so during that 20 years, if something happened to you, what do you make a year? $100,000. Okay. Right at $100,000. Okay. Right at $100,000. And, you know, $300,000 would produce at 10%, $30,000, right?

Correct. Okay. And you have a paid-for house, and so that really lowers your wife's need. But really what we're saying is, is what would she need in income and then multiply that by 10 or 12 not counting what i mean and you can deduct whatever investments you have and so let's say i'll give you a rough and dirty let's say she needs a hundred thousand dollars if you die a year correct okay the 300 would produce 30, give or take. I'm using rough numbers, okay? Mm-hmm.

And if it did that, then that means you would need enough to create $700,000 more. Okay. So you'd need $700,000 in insurance if she needs $100,000. You see how I did that? Correct. Okay. And because we're trying to make sure she has enough income to raise these babies if something happens to you during this 20-year period of time. The good news is you don't have a lot of expenses,

so she may not need $100,000 if something happened to you. All right. $100,000 income. You see what I'm saying? So if you want to take out half a million because she doesn't need $100,000, she's going to have to make it on $70,000 or so. What I was looking at also is I've got five years left on the 500,000 policy yeah to keep both of them for the next five years so it's a million dollars for the next five

years and after that it will go back to 500,000 yeah that's another way of looking at it and because during and during that five years you build your 300 up even more right see if that 300 is 600 by the time you by the time in five years if it doubled because you added to it and because it grew in good mutual funds now you change the equation again okay she's now got 600 000 if you die five years from now and 500 000 on top of that well that puts you to me in one and so she's got your $100,000 income. Everything's good, right? Correct. So if you continue to grow your investments, the $500,000 may be all you need if you can get to where... My investments are TSP.

Is that going to matter any? No. As far as... Okay. No. I mean, you should be in the C plan. I am. Yeah, the C...

Whatever you recommended, I'm... The C, the S, in the eye yeah and so you know if it grows at 10 it's going to double every seven years okay that's if you don't add anything to it okay and so it's going to double faster than that if you add to it if you continue working during this next five years which you will you're only 50 and um and you got a house full of kids so you're going to keep working so so i've been working for a while can i tell you a quick story about the foster child or the new my adopted child he's two years old and uh he every night he has me read super red racer that book of yours and uh he hit funniest thing he'll do, he'll say dollar bill,

and then he'll say, I'll read it and say that the best place to go when you need money, and he'll go to work. You know, so it's the funniest thing to watch him do that every night. I love it. Well, it's going to be drilled into his psyche. That's awesome. That's what those children's books are for, exactly. That's fun.

That's cool. Hey, thanks for mentioning that. Appreciate you calling in. Patrice is with us in Kansas City. Hi, Patrice. How are you? Hi, Dave. I'm well.

How are you? Better than I deserve. What's up? Well, I have a dilemma, and I don't know which way to go. Okay. I retired in December, and now I find that I'm going to have to buy a car that I didn't budget for. Why are you going to have to buy a car? It's a Chevy Bolt, and I've had it in the shop seven times in the last six months. Okay, so you're sick of this car breaking down.

So what's it worth? Yeah, and it's going to, I would say, I looked it up, they say $11, but I would say they might give me $7. Okay, well, I don't care what they give you. I mean, you need to find out what you can sell the car for. You're not at the mercy of the dealership. This is true, but I want to get rid of it so badly. I would let them.

No, I'm not going to give it away. I mean, we're going to sell an $11,000 car for $7,000. We're going to sell an $11,000 car for $11,000. All right. Okay, so then how expensive a car are you going to buy? Well, probably between $20,000 and $25,000 because, as I said, I didn't budget for a car this year. I had thought I could get a part-time job, say $500 a month. I haven't been successful with that.

So I assume you have $25,000? Well, here's my thing. Do I pay cash for the car or do I finance it? I don't know. You never finance a car? I have never financed a car. Under any circumstances? Okay, so I should pull whatever money.

How much money do you have in your nest egg? About $260,000. Okay. And so if you sell this car for $ and you pull out 10 000 you'd have 21 and that gets you down to 250 000 and you pay cash for a 21 000 car and that's the best thing to do yeah definitely okay listen if you had 250 000 in the bank in your nest egg and you could go borrow ten10,000 to put more in your nest egg, you wouldn't do that. No.

It's the same thing. It's the same thing. Well, I have trouble getting past the fact that it's earning more than probably what I could buy. If you could borrow $10,000, you could borrow it for a car, and you could borrow it and put it into an investment, would you borrow money to put it into an investment? No, you wouldn't. No.

And it's the same thing. So it's a depreciating asset. You've got the money. How old are you? 62. Okay. This is why you saved your whole life. I know. So you can buy a car. So write why you saved your whole life. I know.

So you can buy a car. So write a check and buy the car. Okay. And don't get ripped off on the sale of the old Volt just because you're pissed about the thing breaking all the time and you want to toss them the keys and say, get this thing out of my face. I don't blame you. It's frustrating, but that's how they steal cars from you don't let them do that so you don't have to give it away and if they're not going to cut you a deal after

they've worked on it seven times um hey this is their product they should stand up and write a check for it if they don't want to do that put it on the market on Craigslist, sell it, and then go buy your other car with cash. Thanks for the call, ma'am. We appreciate you joining us. That puts us out of the Dave Ramsey Show and the books. Thanks to James Childs and Kelly Daniel in the booth. I am Dave Ramsey, your host. We'll be back with you before you know it. In the meantime, remember, there's ultimately only one way to financial peace, and that's to walk daily with the Prince of Peace, Christ Jesus. Hey guys, this is Blake Thompson, Senior Executive Producer of The Dave Ramsey Show.

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