The Ramsey Show - App - Managing Rental Property Repair Costs (Hour 1)

Episode Date: March 13, 2019

The show about you

Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studio, 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 am Dave Ramsey, your host. You jump in, we'll talk about your life, your money. It is a free call at 888-825-5225. That's 888-825-5225. Anthony O'Neill joins us at the bottom of the hour.

We're going to talk a little bit about all these crazy celebrity parents bribing people 25 million dollars and stuff to get into yale this one guy he just cleaned up so anthony i'll talk about that a little bit because we're talking always about college and always about how to get into school debt free but uh the fbi just busted 50 people if you haven't heard, including a couple of little starlets and little Hollywood people for bribing people. And we'll talk about it at the bottom with Anthony. So you got questions or comments about college, about university, about anything along those lines. Anthony O'Neill will be with us. Ramsey personality, author of the bestseller,

The Graduate's Survival Guide. He'll be here at the bottom of the hour. Audrey is going to start off this hour in Minneapolis. Hey, Audrey, how are you? Hi, Mr. Ramsey. Thank you so much for taking my call. Sure. What's up? So to make a very complicated situation brief, basically my husband's in the Army, and we've had to move unexpectedly. So now we're in the situation where we own a home in another state that we're renting out, and now we've had to move. So we're really new listeners, so we're still trying to learn. But we are trying to figure out if we want to make progress on our baby step two, but we feel the responsibility to keep our savings built up that we have

to make sure our tenant has a comfortable place to live. So I'm looking for advice on, you know, I know you're a real estate guy, you know, how much we should keep saved for that, if we should, just kind of your general advice. Yeah. I'd get the house sold as fast as I could. Okay. That's what I would do.

So, yeah, we've got someone in a lease until next February at least, so it would be until then. But we want to as soon as we can. I wonder if they want to buy it. I hope so. That would be great. No, I mean before February, like tomorrow. Okay.

That's what I'd be doing. I'd be working on that angle. And yeah, you probably do need to keep a rental property emergency fund in addition to regular baby steps, just in case the place, you know, if you have a heating and air system go out, you're something, you've got to fix it. You're obligated as a landlord to do that morally and legally. So, but this property needs to go bye-bye as soon as it can okay you do not want to be a long-distance landlord and besides that you don't have any

real equity in it anyway you're not making any money you're probably losing money oh yeah definitely we it was uh we shouldn't have bought a house but we that was before we started listening to you and we were supposed to be there for five years and ended up only being about six more months so it was a mistake yeah they got you on that one ouch well thank you for your service but get rid of that house as fast as you can and yes keep a little bit of an emergency fund to be uh just for the real estate over there until you can get rid of it robin's in seattle Hi, Robin. Welcome to the Dave Ramsey Show. Hi, Dave. How are you doing today?

Better than I deserve. What's up? Hey, so I am in baby step two, and about a year ago, before I started following your steps, I found a deal that was probably too good to be true and got involved in a startup, and it turns out I think there's been some misleading and some shenaniganry going on in the background, and I'm trying to get out, and I'm trying to see what your opinion is on what I spend on an attorney to get out versus just walk away and move forward because I would really like to lay siege,

but I don't know if that's the best decision for my family. Yeah. So you got involved. You mean you bought into it? Yeah, I invested in it how much uh 90 000 total and you're not the majority stockholder uh correct and what's happening they're not doing what they said they would do or what? I don't understand. They're not making timeline commitments. It's well behind all the deadlines. And then the financials aren't adding up.

So when I started to try to seek out source documents to make things make sense, I got rebuffed pretty hard. Do you work there? I do not. I do not. This is strictly an investment okay and what's the total size of this operation uh the company's valued at about 1.5 million i've got i've got 63 000 of that 90 000 covered in notes so and those are 50000 of that 90,000 covered in notes. So, and those are 50,000 of that is personally backed by people. So at a minimum, we'll get about half of it back. Yeah.

What are the terms of the notes? Uh, one is balloon payment due in November. That one's 13,000 to 50,000. One is paid over five years, and they're current on both of them. Okay. So you don't have any rights to

escalate either one of those? Right. Correct. So no leverage there. The only thing I could escalate is there's two companies and they're talking about a merger and I could try to unwind out of the merger. But I've consulted a couple attorneys and they're saying for what I would have to spend, it would not be a wise investment.

So your other option is to stand back and wait and you're going to get your 50 eventually of your 90, right? Correct. So your exposure is 40, really, assuming these people have deep enough pockets assigned on it personally. And it sounds like they do. And they're current on all that, so you're probably going to get that money. Hmm. going to get that money um so the conversations with the people that brought you into this um when you start asking for source documents um i guess you could you know one thing you could do would just be you know threaten them that you're going to come in and mess up this merger they

don't know you're not if they don't turn all of your 90 into personally guaranteed notes so just transition at all the notes yeah okay i mean right at this stage it sounds like you'd be happy with that right i'd be i'd be thrilled with that yeah and it's just like guys i don't think you guys are playing on the up and up, and we can either spend $10,000 to $20,000 apiece battling and sending some lawyers' kids to college because I think you're screwing around over here, or you can just convert my position to notes guaranteed personally by you people with deep pockets. Your choice. Would that work?

Well, thank you. Yeah, I'm happy to give that a run it's just i i gotta give you some credit here after all the things i've tried to do to do a bigger better deal this uh this baby step system works pretty well and i think the hardest thing for me to swallow here is it stalled my progress oh yeah yeah definitely you'd like to get your 90 grand back to be able to go back into that but um yeah and and uh what is your net worth uh about 310 000 yeah you don't need to be making 90 000 plays in startups that you don't have majority position in and you've learned that the hard way because you're going to be hard pressed to get all this money back even even if with the guarantees so I hope it turns around for you.

This is the Dave Ramsey Show. The last thing I want you to feel is buyer's remorse, especially when you offered thousands more on a new home to win a bidding war. If I've taught you anything, it's that blindly throwing money at a problem is a stupid plan and something you'll regret for years. The key to avoiding this rookie mistake is to call Churchill Mortgage and get certified. This easy program puts you miles ahead of your competition because you are pre-underwritten. Your interest rate is secured,

and yes, you can close within 14 days. Don't fall into the trap of offering more money just to compensate for a poor plan. Call Churchill Mortgage today and get certified. Call 888-LOAN-200 or visit churchillmortgage.com. This is a paid advertisement. NMLS ID 1591. NMLSconsumeraccess.org. Equal housing lender. 761 Old Hickory Boulevard, Brentwood, Tennessee 37027. In the lobby of Ramsey Solutions, Jana and Justin are with us.

How are you guys? We are great. Dave, how are you? Better than I deserve. Where do you live? We are great. Dave, how are you? Better than I deserve. Where do you live? Phoenix, Arizona. Welcome to Nashville and all the way over here to do a debt-free scream. Yes. Love it. How much have you paid off? $303,000.

Woo! And how long did this take? It took us three years and eight months. Wow. Very cool. And your range of income during that time? We were around $100,000 to about $110,000. Whoa.

Okay. So you sold some stuff. We did. What did you sell? First thing we sold was my truck. Oh. My vehicle. Ouch. Paid off truck.

Oh. What was it worth? $10,000. Okay. What else did you sell? we sold a rental property ah and how much did that bring 161 okay very good very good so at 180 of the 300 so that leaves us 120 starting to make now i can start to see the numbers coming together what else did you sell that was all we sold other than some garage sales the big stuff okay so the debt the debt the 303 000 was on the rental property and what else well we had uh credit cards of course and we had two tsp loans of course we

were dumb twice so um and we paid off our house hey Hey! Looking at weird people. Yes. A paid-for house. What's your home worth? Right now, it's around $250,000. Woo-hoo-hoo-hoo! And it's all yours in Phoenix, Arizona. Can't believe it.

Boom! Just like that. Just like that. That's pretty cool. How long have you two been married? It'll be 15 years this year. Cool. Very cool. Have you ever been debt-free? It'll be 15 years this year. Cool. Very cool.

Have you ever been debt-free while you were married until now? Never. Never. Not even close. Wow. Came into the marriage with debt all along, and then something happened three years and eight months ago that lit a fuse. What happened?

We just were tired of drowning in debt. We went on a vacation to Hawaii and got back and put everything on the card. We were maxed out. And a few months later, it was time to turn on the AC for the first time in the house. And the downstairs AC unit was pretty much need repair or to be replaced. $5,000 to $7,000. There was no way we could afford to do that. Luckily, her father is an AC repairman and was able to come up and do the repairs at a minimal cost.

But I thought, man, making $100,000 a year, I can't afford a new AC unit for my home, for my family. I was pretty upset, angry, and depressed, really. I couldn't believe it. That kick-started it off, and thank God she is just a wonderful person when it comes to finances, doing the budget, Excel spreadsheet queen, and I really owe it all to her. So that kick-started it off, and then selling the truck

and just cutting everything. Just everything we could, we cut. We canceled gym memberships, cut cable, called the insurance companies to get better rates. If it was to save a dollar, we would do it. And we just got intense with it. Very cool. Good for you guys. Amazing.

Well done. So how did you connect with us in the process? I was always listening when I picked up the kids from school, and they hated it. But yeah, once we hit that wall, I was like, we have to actually do this. So yeah, we did Ish for about six months. I don't recommend it. And then I'm going to get emotional. We did Ish for about six months. I don't recommend it. And then, I'm going to get emotional.

I had to call him at work and said, don't buy anything. We had nothing. It was terrible. Yeah, she called me and went something like this. Have you used the credit card yet today? And I said, well, I haven't, but I'm about to. Don't purchase anything.

Don't even buy something to drink. And I remember, okay, sure. And I was really upset that day. A whole bunch of reasons. Can't believe, you know, she's telling me what I can do with my money. And I can't even buy a drink at work. But it was pretty sad. We just wanted to change everything. I've been listening to you for over 16 years.

Not listening. I remember a gentleman I work with, an older guy, he said, you listen to Dave Ramsey? I said, I do. I really love his show. Okay, so what step are you on? How do you live uh how do you live your life with dave ramsey i said oh that's not for me i just like listening

to him i love the people that call in he says well you listen to the man but you don't implement anything he says whoa he called you he called me out and i said yeah that's that's true so i i that always stuck with me and knew that i had to really follow what you guys say. And that would get us to being debt free. Yeah. What really happened was you got sick and tired of being sick and tired. Yeah. Absolutely.

You guys got a healthy dose of disgusted. And until you get that, you're not going to change anything. Right. You are a spectator looking on the outside looking in. Yeah. But then once you, it gets real. It gets real. You sell the truck. looking on the outside, looking in. Yeah. But then once you, it gets real. It gets real. You sell the truck.

You sell the rental house. And man, three years and eight months later, house and everything are paid off. Yes, sir. You have no debt in the entire world three years and eight months later. I mean, that was some serious disgusted. Yes. Yes, it was. That's pretty amazing.

You know what? The strangest thing I did was I quit my job when we first started. Going through the budget, I grossed like, or I brought home like 200 bucks after sending these guys to daycare. And so I just came home, became the home economist. He switched to shift at work, and we were able to absorb and make more with me being home, ironically. So check your budgets, guys, with these kids because that can add up big time. So it was actually more economical to come home and have a happier house. It is a lot of times. And you probably actually made a lot of different money in a lot of different places.

But for one thing, your full-time job was getting out of debt. Yeah, it really was. You were focused on it. Well, and we were able to be a one-car family at that point. That's why we could sell the truck. Yeah, okay. Yeah, so that saved a lot there. So you came home and then were stuck at home.

Yeah, we were stuck at home. Absolutely. Get the kids to school, that's it. stuck at home. Yeah, we were stuck at home. Absolutely. Get the kids to school, that's it. That's it. Yeah, we're done. Yeah. Oh, man. How does it feel to have no payments in the world?

Was it worth all of that? Oh, absolutely. Yes. No question. I'll never, ever, ever go back, ever. Feel free. I hear you. Well, good for you guys.

Thank you. Very proud of you. Who are your biggest cheerleaders outside of your family? Oh, outside of family. Outside of you guys, I mean, good for you guys. Thank you. Very proud of you. Who are your biggest cheerleaders outside of your family? Oh, outside of family. Outside of you guys, I mean. Outside of you guys. Friends. We have some friends that are going through the process as well.

We don't brag about it, but they ask questions, and we tell them our little steps and what we've accomplished and just saying, wow, you know, the look on their faces is all we needed to just keep going. House and everything, baby. Woo-hoo! Yeah. Love it. Well, congratulations.

We're very proud of you here, I can tell you that. Thank you. Thank you. We're cheerleaders for you. You guys are heroes. Well done. Well done. We've got a copy of Chris Hogan's book for you, number one bestseller, Everyday Millionaires,

how ordinary people built extraordinary wealth and how you can, too. Everybody can be a millionaire, and you are on your way. You're going to be there. We are. We're very proud of you guys. Very, very good. I mean, the house has got you a fourth of the way right there. Yeah.

So here we go. Game on. Good job, you guys. Very, very cool. cool all right the kiddos been practicing absolutely i mean they hate listening to the radio so they got a bit they still got to know the routine right yeah yeah oh they were excited about this though oh coming to nashville yeah yeah all right janna and justin and your kids names and ages uh this is Emma, and she is 9, and Quentin is 11. All right. Very cool. Jana, Justin, Emma, and Quentin.

$303,000 paid off. Sale of a rental property, sale of a truck, and beans and rice, baby. In three years and eight months, making $100,000 to $110,000. Count it down. Let's hear a debt-free scream. Three, two, one. We're debt-free. I love it. Well done, you guys. Very, very well done. Coming up here at the bottom of the hour, Anthony O'Neill joins us as we talk to you about college and high school. Anything else you want to talk about?

He's Ramsey Personality, author of the book The Graduate Survival Guide. Be with us for a couple segments here. You jump in. The phone number is 888-825-5225. 225. You know, I hate to see people waste money, but that's exactly what happens when you buy an identity theft plan that guarantees, quote, you won't become a victim. Well, the reality is you can't prevent identity theft. All these credit monitoring and preventative plans with their fine print guarantees are just a bunch of hype.

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It's the only plan worth buying. Go to ZanderInsurance.com or call them at 800-356-4282. Anthony O'Neill, Ramsey Personality, joins us this half hour. Your phone numbers or the phone number for your questions is 888-825-5225. That's 888-825-5225. That's 888-825-5225. So, Anthony, big announcement today. Yes, sir. The launch of the small... The small... It's not small at all.

The Fall Smart Conference. Yes, sir. Coming up. Going to be good. Where are we doing it? November 16th in Sacramento, California, Dave. Sacramento, baby! I'm going home to California.

The first time we've done a Smart Conference in Sacramento. This is the first. This is good. Day long, everybody's there. You leave. You start in the morning. You leave in the evening. Yes.

And you are smarter. Yes. When you do this. this is going to be absolutely amazing the smart people will be there speaking and um and and me too yes sir but uh anthony o'neill will be there teen and millennial expert yeah uh john o'leary will be with us his smart his first smart i can't talk his first smart conference uh dr les parrot will be there on marriage and money. No, that's John's second one. This is the second one John's done. Dr. Meg Meeker, the country's leading authority on parenting and teens.

And you and Meg are doing these smart parent events coming up. And where are those? In Sacramento, California. It is in Sacramento. Yes, sir. Okay. And we're also doing both of those, two in May, Sacramento and one in Minneapolis. That's it.

And so I'm really excited about those two with her. OK, there they come. May 14th and 21st. But now this fall, November the 16th, the tickets go on sale today. Yes. Early bird tickets for the smart conference. Listen, you would pay double this to see any one of these speakers. Chris Hogan will be there.

Ken Coleman will be there on career development. Chris Hogan talking millionaires. I'll wrap up the day. It's going to be a great, great day. Early bird tickets start today at $49. There's just a few of those at $49. And when those prices are gone, we ratchet it up one notch, and then we ratchet it up another notch, so the faster you

buy your tickets, the better deal you're going to get in Sacramento. DaveRamsey.com, or call Ramsey Concierge at 888-22-PIECE, 888-227- 3223. How many of these have you done? This would be my sixth one, Dave. Wow.

Yeah, sixth one. You're an old pro Dave. Wow. Yeah. Sixth one. You're an old pro now. I don't know about a pro. You're the pro. I'm just excited to be on the stage with the pros. As you know, it's just exciting. Well, actually, you've been getting the highest ratings on the last two out of just about all the speakers. Ah, Dave.

So that's the truth. Well, it is. It means I've got to pick my game up. That's what it means. You're Dave Ramsey. I have to work harder than you, sir. I'm here because of you. You did it, the ratings show it i'm just saying hey guys you don't want to miss this it's going to be a great day you will leave inspired informed and you know

if you've done six of these things you've gotten to see some people come back or see them a year or two later and had the experience, haven't you? Yes, sir. And I think one of the things I love about this, Dave, just the last time I was there, I was out there watching Ken Comins talk, and he's talking about the proximity principle and helping people really land that dream job. And I was watching this one guy. I don't see a lot of guys like get teary-eyed, but I was watching this guy really get what

Ken was talking about and get the whole day. And he left, I don't believe not just smarter, but he left motivated to go do what he has to do to land that job and to be a better and a smarter person. So when I see people come back, when I see people come in and just leave on fire, leave with hope, I get excited. I really do. Yeah, it's a lot of fun. These events are, I venture to say it's a lot of fun these events are are um i i venture to say it's probably one of the best events in america today yes sir um because of the people that are there it's an all-star lineup i mean it represents uh about 30 to 35 million books sold by the people

that are speaking and so they are they are world-class experts in their spaces and thought leaders and they're world-class communicators. So you really do laugh, you cry, you come away motivated, you come away believing I can do this and getting after it. I mean, it's just a lot of fun. And Dave, I would definitely say in my younger days, I spent $250 to go to an event with speakers on it, and I left with a bunch of fluff. You will not leave with fluff. You're going to leave with substance and just some solid stuff to help you with your life. So for $49, this is a steal. Dave, you are an amazing man to sell it at $49.

Well, it's not a whole bunch of tickets at that. So if you want the $49 ticket, you better get it today, really. DaveRamsey.com and call Customer Care, Customer Concierge, Ramsey Concierge at 888-22-PEACE, 888-227-3223. So MSN reporting it this way. The Justice Department on Tuesday charged 50 people, including two television stars, with being part of a long-running bribery scheme to get privileged children with lackluster grades into big-name colleges and universities. Cheating on entrance exams, bribing college officials, acting like they're athletes when they're not. Numerous schools are targeted.

Georgetown, Yale, Stanford, University of Texas, University of Southern California, and UCLA. The Boston U.S. attorney, Andrew Lelling, calling it the largest ever college admissions scam prosecuted by the Justice Department. Of the 50 people charged as part of the operation, 33 were parents, warning that the investigation is ongoing and more will likely be charged. The massive scheme was discovered accidentally by the FBI while working on an unrelated undercover operation. The tip led to a sprawling nationwide corruption probe. One guy in here, he brought in $25 million in bribes, some of which he used to pay other people to get the tests fixed or act like they're on the rowing club and they're not or act like they're in the soccer on the soccer team, but they're not. And bribing coaches and athletic directors.

It's a mess. Yeah, it's a mess, Dave. And as a guy that's out there in these colleges every single day and at high schools every day, every single day, seeing these young kids work hard who are whose parents are not wealthy. You know, they're out here taking ACT. They're getting a 4.0 and getting denied to go to schools like Yale or UCLA. And then to see this crap come on and saying, and we're seeing how parents are spending money to get their kids into it who do not deserve it. It frustrates the heck out of me because I'm seeing other kids who deserve to be there, but can't go there. And we're just sending the wrong message to these kids that, you know, money can buy you anything. Money can buy you a lot of things, but it should not. And if you don't own it you shouldn't be there yeah and that's just the bottom the bottom line i think one of the

things that bothered me dave was one of the parents spent over a million dollars yep to go to yale just to get their daughter on the soccer team yep and i'm like wait that's not even her college tuition right she's they spend way more money they could have did so much with that money they could have donated to help kids go to school who really want to be there but they wanted their daughter to go to yale and it just it sends the wrong message and in two it also sends the wrong message for wealthy people as well like all wealthy people are using their money for influence and we know that's not the case um but this is this is frustrating to me dave yeah oh we know it's not the case i mean this is frustrating to me, Dave. Yeah. Oh, we know it's not the case.

I mean, there's crooks that are poor. Yeah. And there's crooks that are rich. Yes, sir. These are rich crooks. Yes. Is what they were. And jerk administrators and people just being bribed up and down the line left and right.

But, you know, it's based in a false premise. It's based in the idea that if my kid can go there, they'll be successful, so I'll do anything to get them there. And the bottom line is all that money, even if it was legitimately spent, which it was completely not. They're crooks. Right. Okay. But even if it was legitimately spent, all that money was wasted anyway because you don't become successful because of where you went to school. There is no data to back that theory up.

Yeah. There's no data. Zero, zero. Your mind is how you become successful. What you invest into your mind, whether that's at Yale, whether it's at Tennessee State University or a local community college or a trade school or going to the military and get an extra education, you become successful.

It's not the school that makes you become successful. That's exactly right. Your character, your work ethic, your perseverance, your ability to continue to learn after you graduate. I mean, it's just absolutely a mess. Frustrating. There's just so much bad and ugly about this. And I'm like you.

For the kids that should have gotten the scholarships, you just really want to punch somebody out over that one. Man, oh man. Give them a two-punch, Dave. Boom! Anthony O'Neill is with us this hour. Back with your questions

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and the announcement of the Smart Conference for the fall. Let's go. That's right. We're going to be in Sacramento doing our one day long event with all the lineup anthony only will be there teen and millennial expert john o'leary john's he's pretty strong he's he's very strong second time with us this year not this year but at smart conference and uh the always inspiring leadership expert i just love what he's doing. His talk will send you to the moon. It's amazing.

Dr. Les Parrott on marriage and relationships. Dr. Meg Meeker on parenting. Chris Hogan, national best-selling author twice, including the Everyday Millionaire book that we just had as number one. Ken Coleman will be speaking on career development and me. Early bird tickets are $49. Not many of those available at that price. So check them out and get them as quick as you can at DaveRamsey.com

or call Ramsey Concierge at 888-22-PIECE, 888-227-3223. And Marie, your question for Anthony. Hi, Dave and Anthony. I'm so relieved to be talking with you today. Thank you for taking my call. Our pleasure. How can we help? My husband and I are in Baby Step 2, and we are expecting to be completed with that this year.

But just a couple of months ago, my mother-in-law revealed to us that she still has a Parent PLUS loan that she had taken out for my husband, and she has asked us to take that responsibility. Did your husband agree to that when she took the loan out? Well, I think so. He thought that she had paid it off and it wasn't brought up. Again, it was taken out when he was really young. We've had a lot of discussions about this together, he and I, and we feel torn between not being legally bound to this loan,

but we don't want to be ungrateful, but we don't want to compromise our plan either. And we just found out she had had it in deferment since 2011. So it's definitely more than the original amount. So what is owed on this stupid loan? The original amount taken out was $23,000, and now it's currently at $31,000. Why has she not paid on it? I don't know.

Is she broke? I think she is. She doesn't like to talk about her finances. She hasn't. The communication is a little bit of a struggle. And I take it she's single. Sorry, what was that? She's single.

She just went through a divorce about two years ago, yes. If you were going to guess at her income, what would you guess it to be? Um, I wouldn't say it's more than 45 or 50. Okay. Yeah. You know, and I'm having a conversation with your husband, like you said, um, is this something that you all agreed upon? Um, it, it was going towards his education. And so I'm going to say, you know, mother will, will help you're still going to have to help as well. I know her income is low. I hate the fact that she didn't communicate this earlier, but I'm not taking 100% ownership of this right now

because especially with it being deferred for that long, we could have attacked this together a long time ago, but I would help a little bit, but she's going to have to step up and help pretty much for the majority of it especially being that she didn't communicate yeah what's your household income uh we make about 60 combined my husband and i and how much other debt have you guys got we don't have very much left um we just have about 13 left on the car okay all right so your husband was probably 18 years old his mother took this out. There was no communication one way or the other, and now she shows up and says it's yours.

Right. Yeah. See, that's just wrong on her part. I mean, you don't do this to your kid. No. You know, it's morally wrong on her part. Now, if he had walked in and they sat down at the kitchen table, looked at his dad and mom, and they said,

we're going to take out a Parent PLUS loan, but you're paying it back. If you don't want to do this, let's not do it. And he said, okay, I'll do it. We'll shake on it. And then, by God, it's his. Morally. Right, and that's where we are also frustrated. That didn't happen.

He had taken out, no, had taken out a loan for himself for the other part of the school loan, which we have already paid off. And we celebrated with our family saying we paid off all of our school loans. And then a year later, she brought it up that this was still there. I'm with Anthony. At the most, I would agree to match. Okay. For every $1,000 you put on it, we'll put $1,000 on it. Yeah.

And where do we put that in our baby steps, though? Do we add that to our baby steps, too? Well, here's the thing. She's not going to put anything on it. Yeah. Right. So you're probably, if that's the deal you make, you're probably not going to put much on it. Yeah.

Okay. But it's just a payment because she's not going to come up with $31,000. She's not going to come up with $15,500 suddenly to pay this thing off. So you don't have to worry about coming up with $15,500 suddenly. So she's going to start paying a payment. Then you pay a payment equal to it. As soon as she sends you a copy of the receipt, you okay i'll match that and that just hits your budget the next month yeah okay and uh yeah it was slow down your debt snowball but that's fair that's more than

fair i was about to say that dave you're being very generous that's graceful yeah i mean i hate to just leave her in the street right Right. But this is a grown woman. This is a grown woman who did this to her own kid. This is financial child abuse. Right. And it's probably because she's seen that you all are doing well and getting ahead of the game. So she's saying, hey, since they're doing so well, hey, here you go. Add this to your plate as well.

Yeah. But don't allow that to happen. Maybe. Yeah. Well, her life is falling apart. I mean, she went through a divorce. She's allow that to happen. Oh, maybe. Yeah. Well, her life is falling apart. I mean, she went through a divorce. She's not making any money. She's scared.

Yeah. I mean, let's try to help her. Let's get her in Financial Peace University, and let's work through this together. I'll tell you what. Let's give Financial Peace University to both of you. Just about to say that. You guys go through it, take Mom through it, and then you tell her we're going to do a match. But no, we're not going to take this on because you did not.

This was not our agreement you cannot walk in here and say surprise okay oh that's that's so kind thank you so much hey hold on i'll have uh kelly pick up and we'll get you guys signed up for that so um yeah i run into this a lot i know dave i do too and i'm gonna start calling it what it is it's financial child abuse it is and i think this is also something dave and you as a parent like you said if we have a conversation up front if we agree to go this route cool but i have to say this we're not taking out student loans exactly so we're not gonna be this conversation but i mean there's no there's no moral obligation when there was no moral agreement there you go dave that's what it

comes down to other than mom's guilt tripping and mom's hit the wall and mom's struggling herself. Yeah. Samuel is in Fort Myers, Florida. Hey, Samuel, welcome to the Dave Ramsey Show. Hello, Dave. Thank you for taking my call today. Sure. Your question for Anthony.

Okay, so I'm just going to start off saying I am 18 years old myself, and this summer a few friends of mine, it's me and three other friends, we're actually going to plan to take a road trip up to East Coast, basically. And we are currently all, well, two of us are in college. Two of us are still in high school. And we all feel that we are financially stable to do this. We don't have any debt. And so the total cost of our trip is, we're estimating it to be around $3,200. Each?

Each person is planning on saving roughly $800 to $1,000 per person. We already have all of our funds adequately saved, and we feel that we'll be financially stable. Before we run out of time, Samuel, what's your question? Oh, I'm sorry. We're just not sure at this point on how to pool the funds or just where to put the money in general. How should we carry out our expenses throughout the trip?

Gotcha. Gotcha. The very first thing is, Samuel, here's my thing. If you all don't have a $500 emergency fund, you're not going on a trip if you was my son. I want you to have your priorities first. After that, too, get on the EveryDollar app, man. I want you to do a budget so that way you can go ahead and allocate and start listing out

how are you going to spend this money. Enjoy the trip if you go, but check out EveryDollar and they'll help you budget for the expenses on your trip. I would not combine it all into one account. I would just everybody pay their third. There you go. On each item, each reservation you make, when you go to

the gas pump, pay a third. Everybody go to the grocery store, pay a third as you go along. Don't combine this. Don't form a partnership to go on a trip. There you make, when you go to the gas pump, pay a third. Everybody go to the grocery store, pay a third as you go along. Don't combine this. Don't form a partnership to go on a trip. There you go, Dave. Love it. Anthony O'Neill, thanks for stopping by. Dave Ramsey in America, thanks for having me.

That puts this hour of the Dave Ramsey Show in the books. 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. Head to the App Store and download it today.