The Ramsey Show - App - My Dad Thinks I Should Trade In for a New Car Every Year (Hour 1)

Episode Date: September 13, 2021

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Live Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studios, it's the Ramsey Show, where debt is dumb, cash is king, and the paid-off home mortgage has taken the place of the BMW as the status symbol of choice. I'm Dave Ramsey, your host, Christy Wright, Ramsey Personality. Number one best-selling author is my co-host today. As we take your questions about your life and your money,

this is an exciting week around Ramsey. We are doing a whole bunch of things. I started off my weekend in Orange County in Anaheim, speaking for Eastside Church, tens of thousands of folks attending their four campuses and five services. It was an absolute blast. Wonderful people. Thanks to Pastor Gene and Barbara for having us out there and taking the entire church

through Financial Peace University. Always fun to meet with people who are winning. We're meeting people who are just getting started. We're meeting people who are Baby Steps millionaires and just getting to hang out with folks between services and sign stuff and take pictures and hear stories. And it's just enthralling. I love it. I love it. And for those of you that haven't been to California in a while, I was under the impression California is more shut down than it is.

It was actually pretty open. People were like normal and everything. And I kind of had the impression they weren't. So, I mean, they're California normal. As close to normal as California is going to be. They're a version of normal. were like normal and everything and uh i kind of had the impression they weren't so i mean not i mean they're california normal what as close to normal as california is going to be their version of normal their version of normal but i mean i mean i thought the whole place was masked up and they were all sitting in their houses or something and i i was wrong they're they're pretty much we went to restaurants you can't get in it's busy and everybody's out doing life which is good i'm

glad you guys are out doing life i'm glad in spite of your governor that you're doing life, which is good. I'm glad you guys are out doing life. I'm glad, in spite of your governor, that you're doing life. So big week around here continues. Tomorrow is launch day, street date, for our latest publishing endeavor. Christy writes a brand new book that will be a number one called Take Back Your Time, The Guilt-Free Guide to Balancing Your Life. And you can can balance it's possible uh but you have to understand what it really is we're going to be talking about that a lot this week uh you can get the book at ramsey solutions.com including 50 worth of items only until midnight tonight because tomorrow once the book is on sale it's 20 for the book that's simple today you get 20 for the book and 50 worth of stuff which includes $20 for the book and $50 worth of stuff, which includes the e-book, the audio book, access to the live event that Christy and I will be doing on Thursday night, which

is another part of this big week. We've got about 21 seats left here in our auditorium for the live in-studio portion, and we're live streaming the Take Back Your Time live event that Christy is doing, and I think I'm doing the intro or something like that. Yeah. Am I closing, or am I doing the intro? You're doing the intro, and anybody that pre-orders before midnight tonight gets a ticket to that, so you can live stream it, or if you're in Nashville, come join us in Nashville. We'll be doing a book signing for those people that are the in-studio audience.

It's a launch party. I'm speaking, you're speaking, so it'll be a lot of fun. And if you're waiting on the audio book, i've had a lot of people tell me dave they're waiting on the audiobook i'm like pre-order now you get the audiobook free and you'll get a hardback copy of the book so uh you get the ebook audiobook and a ticket to thursday night's event if you pre-order today you'll be able to download all that within 24 hours yes yes in less than 24 hours now that's right book will ship out tomorrow or it may ship out today yeah because we just don't want you to have it before launch day that's all because we told the bookstores not to put it out until then so it's a bit it's a big launch

day for take back your time and here's the thing we live in a culture we were actually talking about this this morning the great resignation ken coleman's dealing with that a lot with a number of people that have had an exit existential experience where they kind of stopped and went wait a minute this pandemic thing made me realize i may not get out of this whole thing alive and so maybe i ought to work on crap that's important to me rather than just work yeah and so people are resigning 2.7 percent of americans resigned their job last month. Wow. That's 36% of Americans, if you annualize that, in one year will turn over. That's a record. Nothing like that has ever been seen in modern times in America.

But what that tells us is that we're pulled at 62 directions, and we're not always working on what we think is important. And something like a pandemic has to say, whoa, what's important? Well, it makes you rethink your life. You know, sometimes I think that we wake up, we pour a cup of coffee, and we just run so hard. And we don't stop to think, am I filling my calendar, my to-do list, with anything worth doing?

Or am I just reacting to everyone pulling at me? And the truth is most of us are running so hard and so fast reacting. And so there is something about the pandemic, but there's also something about the heart behind this book of going, hey, you get one life. How you spend your time is how you spend your life. So I wanna help you figure out what's important to you and actually do that because it turns out

when you do what matters to you, that's what makes you feel balanced at the end of the day anyway. And so it's really bringing a new take on this balance equation and getting to the root issue of what's going on, which I believe is what's really going to help people. Yeah. An old football coach friend of mine, he always quotes James. He says, you're just here for a vapor.

Yeah. You're just here for a vapor. You're just going to be here for a second. So you better make the most of that dash. Yeah yeah between the date you were born and the date is over you better make the most of that dash take back your time yeah and uh you know what did you do with it did you do it on purpose and um as sharon and i over the years as we've grown this business and had all these different uh uh things pulling at us, things that quote-unquote needed us. Sharon's always saying, well, you're not the Messiah.

That's his job. You don't have to be everywhere. That's God's job. You can't be God. You're not Jesus. Just stay home. It's okay. And yet you want to get things done.

You want to accomplish stuff. You want to step into things that have meaning. But we've had to learn at our house to control our calendar with almost more intensity than we do our budget yeah well well there's a finite aspect to your time that you don't have with money you can earn more money you can't get more time we all get the same 24 hours in a day so it is the most finite resource that we have so how we manage it becomes a major factor in our ability to be successful, reach our goals, and just live our lives like we want to. And I think one of the interesting things, Dave, you know, our email team here, our research team, marketing teams, they're all into SEO, search engine optimization. They know some of the top search terms. And the top search terms are productivity, efficiency,

you know, multitasking. And I'm going, man, we think the solution is just to work harder, work smarter, multitask, have the right app, have the right morning routine, and just do more. And it turns out we can do all that and just end up exhausted. So I want to help you actually get out of the rat race of just thinking that doing more is going to solve your balance problem because it's not. I want to help you figure out what matters to you and do that. And it turns out that's what leads to that feeling you've been wanting. But it's a different path than most of us are pursuing every day, to be honest. So get all the free stuff. Do it before midnight tonight.

That sounds like an infomercial or something, but it is. I mean, we shut it off at midnight because tomorrow is officially the launch day. So the book is Take Back Your Time, The Guilt-Free Guide to Life Balance. It's $20. It includes the live stream event. Or if you want to be in studio, you can do that for the event this coming Thursday night for Christy and I. We're looking forward to that. All you've got to do is just go to ramsaysolutions.com, and you can preorder the book,

and you can sign up for anything you want to do. If you put slash time after it, it'll bring up the live stream event. And you can register for the live stream event. But there's no need to pay for that. Just get the book, and the live stream is free. And the e-book is free. And the audio book is free if you do it right now. We've been telling you for months, weeks, whatever.

Do it right now. Now! RamseySolutions.com People always say, when I get this promotion, I'll be able to make a real impact. Wrong. When you make a solid plan on how you need to grow, you can become the leader you want to be. And that's why Ken Coleman, America's career coach and national best-selling author, wrote his new book, From Paycheck to Purpose, The Clear Path to Doing Work You Love. And it's available for pre-order right now.

If you want to grow or create a legacy in your career, you need this book. It's not just a concept. It's a proven, clear path that will walk anyone in any industry through a step-by-step plan to take their career to the next level. Plus, if you pre-order From Paycheck to Purpose today, you'll receive our Get Promoted bonus pack for free, which includes the audiobook, e-book, disc assessment, an exclusive talk from Ken, and access to our live event and more. Pre-order from paycheck to purpose at Ramsey Personality, number one best-selling author and author of the brand-new book, Take Back Your Time, The Guilt-Free Guide to Life Balance, is my co-host today.

Justin is in Charlotte, North Carolina. Hey, Justin, what's up in your world? Hey, Dave, how are you? Great, man. How are you? Doing well, Doing well. Doing well. I just had a quick question. I started working as a second job about five or six weeks ago just to take care of some bills

and just kind of lower our monthly dues as you would um i currently owe 15 000 on my truck 18 000 on my wife's car and uh roughly 100 000 on the house um i'm bringing home anywhere from 700 to 1100 a week extra and every friday for the past five weeks i've been paying that directly to my truck on top of the monthly payment that i normally make am I making the right move here? Yep. You're doing great. What are your side hustles? It's my old welding gig.

It's right around the corner from my house, and they just stay super busy, so I can just kind of roll in there when I want and help them, and they help me just as much. Yeah, you're doing awesome. That's amazing. So just your welding, you're doing awesome that's amazing so all just your welding is is that profitable that's awesome man that's an extra 50 grand a year i mean that's pretty incredible yes sir yeah nice side hustle you know uh uh so the big thing here is not only do you want to throw the side hustle money on there you want to be doing a budget that includes everything coming in side hustle money and all your You want to be doing a budget that includes everything coming in,

side hustle money and all your money, both of you are making, and then you spend all of that money on paper with your EveryDollar app. It's free to use. And you give EveryDollar an assignment, and any dollars that are left over above $1,000 saved for Baby Step 1 are going to your smallest debt, which is your truck. And so, yes, you're correct to throw this money, but I'm challenging you. There may be some even more money in your budget when you start living on a written game plan

that you and your wife are agreeing to. You'll feel like you've got a raise. You may find some more dollars there. The other thing, Justin, to keep in mind is that when we talk about becoming debt-free in Baby Step 2, we're talking about all debt except for the house. That's a different baby step. And so you're doing great. Just tackle those cars in Baby Step 2 like you are, one at a time,

with your side hustle money and any extra money that you can squeeze out of the budget from your full-time job, and you'll be debt-free soon. You're doing great making all that extra income, so well done. Yeah, I mean, if you're making, you're going to be there in six months. Yeah. You got $33,000 bucks left on these cars. You're going to be done pretty quick. And then you go and finish your emergency fund at three to six months of expenses, baby step three, four, as you start saving 15% towards retirement, and we start to work our way towards baby step millionaire as that next move then. Kayla is with us in

Indianapolis. Hi, Kayla. How are you? Hi, David and Christy. How are you guys? Great. What's going on? So I'm currently pregnant.

I'm due November 10th with my second son. And this time around, I'm doing things a little differently. I'm doing things the Dave way. So we're about ready to start baby step one, and it really makes me nervous to only have $1,000 once you appear. So I was wondering if we could stay in short mode for, say, six months just to get enough for once you appear and make sure everything's okay, and then we jump into baby step two. I know that the $1,000 is supposed to push you and give you that momentum,

but it just really makes me nervous only having $1,000 with a newborn. Well, to start out with, we tell you not to pay money on debt while you're pregnant. So just pile the cash as big as you can pile until November 10th. But now you've had a baby. This is second one this is not a mystery which is exactly why i'm asking this question i mean i mean what did you have that how did your life financially turn upside down in the first six months they just eat formula and diapers true but i didn't have a very supportive partner we're no longer together and he actually doesn't even help with with my son so that's not the case with my husband but i'm saying i know what can happen and like if something happened with my car what can happen if something

happened with my car your car babies break cars no they don't but if i needed that money for him i'm just i'm just not sure if a thousand dollars is sitting on a thousand dollars you don't but if i needed that money for him i'm just i'm just not sure if a thousand dollars is sitting on a thousand dollars you don't need that money for him you needed it for the car a minute ago kayla let me jump in here let me jump in here let me kayla so the the mindset typically when we talk about saving up while you're pregnant is the idea is to get the baby safely here when your the baby safely here. When your baby is safely here, which is what we would pray for and hope for for you, you've done this before. That's the idea. Then once the baby's here and you've adjusted and

you give yourself a minute, then yes, you can go back to paying off debt because things are different now. Now what I hear in your question, and maybe I'm reading into it, but what I hear in your question is Kayla, you've got some wounds from how this went last time you didn't have a supportive partner last time you had to do things on your own that was scary and that that fear is still with you and I hear you but what we encourage people to do is we want you to make decisions based on facts not on fear right now sounds like you're in a great situation you've got some money saved up you're going to keep saving up when the baby is here safely you can begin to pay on that debt again and you will be bringing this baby home with a supportive spouse in a different situation so i just want to encourage you yes that fear taught you something

but we don't have to live in that fear and worry because there's no amount of money that's going to relieve that fear that's that seems like that's that past wound talking to me and the idea is we want to get that baby here when you get the here safely, you can start to pay on that debt again. Once baby's here and safe in your situation, hon, the reason I'm poking at you is 99% of your world is predictable. It is formula diapers and pediatrician bills, and they become part of the budget, and you don't need an emergency fund for those things.

And there's no boogie monster in the closet. There's just not um does maternity leave factor into that at all unpaid maternity leave that's another reason i guess you're gonna have to put that in your budget right okay i mean if you guys can you live on his income um yeah i believe so it would be very tight right now we make around 90 000 both of us what does he make he makes that's take home for both of us he makes 85 okay on his own and that's not and you make five take home it's about 5 000 a month for him for me it's almost 4 000 a month i'm sorry i'm oh i thought you said he made 85 000,000 a year. He does.

That's not take-home, though. His take-home is about $5,000. Honey, you can live on $85,000 a year with two babies. You can do it. Why do you feel like you can't, Kayla? Do you have too much house or something? She doesn't have a budget. That's why she doesn't.

So you're dealing with all these emotional stuff, and you're dealing with no facts at all. And you're dealing with the past wounds that Christy's talking about, and you've got this vague thing in your head. You just told me your husband makes $85,000 a year, and you have two kids. If you miss out a little bit of income while you're out on maternity leave, zippy. Tighten up the old belt and stay out of the restaurants. You can do this. That's very, very, very doable.

Okay? So, yeah, don't add pregnancy drama to this discussion. It's just all you got to do is lay out these numbers and walk it straight through. This is very doable. Christy's done it. Rachel's done it. You've done it. You can do it.

And the $1,000 is not a problem, not a problem at all. Open phones at 888-825-5225. Christy Wright is my co-host today. Thank you for jumping in. It is a free call. And so here's the thing. When you're having a baby or you've got some kind of known uh big event yeah that's a that could be financially negative having a baby is not negative but i was gonna say negative big event but it's financial

it can be we tell you to stop right your baby steps push pause right and then push play and when the baby comes and comes home and take any money above a thousand and throw it at your debt snowball. And the reason we do that is you do have a predictable set of circumstances then. Right. And it could be that you're out on maternity leave and the predictable set of circumstances is we have to live on the $85,000. But that is not an unreasonable thing. And in no way are we putting your family at risk with a $1,000 balance.

You make a good point. The unknown is what is scary to people. If you have a budget and you can see how you can make it work, it's not scary anymore. Because you can see on paper. That's why we tell you guys to do a written budget, an every dollar budget. When you see it, you can do it. It takes the fear of the unknown out of it. This is The Ramsey Show. Thank you. In the lobby of Ramsey Solutions on the debt-free stage, Adam and Alyssa are with us.

Hey, guys, how are you? Hi, we're doing great. Welcome. Where do you guys live? you? Hi, we're doing great. Welcome. Where do you guys live? Grand Rapids, Michigan. Very cool. Welcome to Nashville. And here to do a debt-free scream, how much have you paid off?

We paid off $460,000. Whoa! Whoa! Yeah. How long did this take? Nine years. Okay. And your range of income during that time?

We started off at $80,000. Between the two of us and this past year year we were at $275,000. Oh, big jump. What do you guys do for a living? I'm now a director of operations for a cancer center in Michigan. And I work in oil and gas pipelines. Okay. And you guys are in Grand Rapids?

Yes. Wow. Awesome. Very cool. So I'm guessing with these numbers you paid off your house? Yes. Woo! Way to go, you guys.

Looking at weird people. Debt free completely. I love it. Very cool. What's this house worth? Now it's worth about $400,000. Okay. Phenomenal.

So $460,000 includes the house and some other stuff then. It does. He had student loans when we first got married almost 10 years ago. We had a car that we bought with a loan, which we won't do again, but we paid that off. I went to school. I got one and a half masters completed, so a variety of things. All right, cool. So how much of the $460,000 was the house?

90%. Yeah. Okay. Well, yeah, $290,000. Okay, so $300,000 of it or $400 it or 400 okay or so wow way to go guys that's awesome so what happened what happened nine years ago that got you guys on this kick to not only pay off the student loans the other debt but all of it we got married okay and i had paid off my student loans i had a house he had a house and we just were trying to figure out how to make it work together. What do we do for a budget?

How are we going to save? We wanted kids. I actually got pregnant a month after we got married. Oh, wow. Yeah, it was something. Wow. Very cool. Yeah, we were looking for a plan and kind of fell into this.

It was simple for us to think about. We could do it. But we changed jobs a lot. He got me into management and health care, which has just kind of made my career take off. And I got laid off or fired three times due to the downturn. And then someone asked me to come back, and then it's just been work work work without getting divorced so yeah how'd you

get connected with us on the plan for the plan my old boss from out of college would listen to you guys and he it made sense he had money so yeah as dave said you listen to people who have money not those that don't yeah and And I just kind of started following it just a really small shuffle. We also like the biblical basis, I think, too. We try to teach our kids why we do what we do. To us, that was really important, to have something that wasn't

just to get more money, but there's a philosophy behind it that means more. So that was important to us, too. How does it feel to have a paid-for everything? House and everything! So to us, too. Yeah. How does it feel to have a paid-for everything? House and everything. So awesome. Really good. Just awesome.

Free. Yeah. Free. Different level of weight around your shoulders, huh? Yeah. Very cool. What do you tell people the secret to getting out of debt is? Nine years you've been working on this.

Communication. Hard work and communication. Get a bigger shovel and have a spouse that supports you when you're traveling. So you've been gone a lot, huh? Last year was 90 days in a hotel. And then this year is

27 so far. Wow. That's enough. People who think traveling is glamorous don't do it. Right, yeah, that's true yeah we are for this trip uh well there you go yeah this one you need to glamor it up a little yeah yeah this is not this is not pipeline trip here this is a celebration trip i like it that's awesome what kept y'all

motivated this is a long haul nine years in the house like that's that's even more than a marathon like this is ultra marathon. What kept you motivated? I think our commitment. We have a book every year that we write down what our goals are and where we want to be. And we have four kids now. And so that's my motivation is to be stable, show them how to do it right, how to stick to a commitment. What's the age range? One to eight.

Okay. Wow. Very fun. Yeah. Good for you guys. Well, this is fabulous, you guys. We're so proud of you. Very, very well done, heroes.

Four kids and a paid-off house and everything, all in just ten years. You've been getting after it. Nine years, for that matter. Yeah. Well, well done. Very cool. And we appreciate you coming down here celebrating with us hope you have a great time here in nashville we got a copy of the legacy journey for you that is the next chapter in your story for sure to be everyday millionaires wait a minute are you already we're like 40 there. $40,000 away. There you go. You're there. Round up. Round up.

That counts. Okay. So with a paid for $400,000 house and then $600,000 in nest egg? Yes. You ever take? And you're there. And how old are you? He's turning 40 on Saturday.

All right. Happy birthday. Thank you. Not a bad birthday present, millionaire. That's awesome. Woo! Stock market just needs to go up a little between now and Friday. You'll be there, right?

Yes. I like it. This is great. Way to go, you guys. That's awesome. I'm so proud of you. Well, we're seeing a lot of that these days, and especially when they come in to do their paid-off house as a part of the debt-free screen.

That sets you up to be here. So very, very well done. I love it. Well, we've got a copy of Legacy Journey for you because that's been your motivation. Change your legacy, and you have. And you'll enjoy that book. And, of course, Total Money Makeover for you to give to someone else. And maybe you're the old guy with money now that some young guy is listening to at work watching you.

You hand them off that Total Money Makeover, and we'll get them going. And 10 years later, I'll have them in here, right? So very good stuff. I love it. All right, Adam and Alyssa, Grand Rapids, Michigan, house and everything. Baby Steps Millionaires, $460,000 paid off in nine years, making $80,000 to $275,000.

Count it down. Let's hear a debt-free scream. Three, two, one. We're debt-free! Yeah! three two one we're dead free yeah that's how it's done that is so cool the house man it gets me every time and we are getting that more and more you and i've talked about this this is 30 years of you teaching this stuff and it started you're starting to see people you know baby steps kids and baby steps millionaires and people paying off the house it's becoming more and more normal for people to be completely debt-free which is pretty incredible well let's inject our typical numbers on other situation we didn't ask them about it but it

won't be far off nine years 460 of that um a little over 300 was the house and so let's say it took them three years of the nine to get the other stuff done baby steps one through three debt free have an emergency fund in place and maybe two years somewhere in there and then they've got six to seven years they get the house paid off which is about typical also right of people following the total money makeover baby steps doing financial peace university doing this kind of stuff they knock it out in about seven years and you're sitting there with a half-million-dollar house. And this is very typically what we find.

During that time, from baby steps four, five, and six, you're putting 15% of your income away. Do that for seven years with matches and Roths and good mutual funds and good rates of return. And they're making really good money. Their incomes are increasing during this time 15 of that while paying extra on the house gets you to a nest egg six seven hundred thousand with a paid for house of four hundred thousand those two things added together with 100 debt free equals one million dollars or greater net worth you are a baby steps millionaire yeah this is how it happens all the time yeah yeah and i think i wonder how many people, are right at that Baby Steps millionaire mark, and they may not even realize it because their situation has changed just in the last three years even,

whether it's from their investments, their retirement, their home value going up. Value of the home, yeah, that'll get you. Going up. They may put them over the line, and they don't even realize it. And so it's just incredible how quickly that can change when you follow the Baby Steps. Well, the number of people that aren't actually focusing on the number, instead they're just focusing on doing the work. The principle, yeah.

And then they look up and go, oh, we did it. It worked, yeah. We're there. Look at that. We did it. There it is. There it is. And it just sneaks up on you.

The number of times I hear that as well is it's pretty typical, again, for a baby steps millionaire. And we're finding these folks everywhere, and we've known they were there, and they kind of did portions of the plan on their own. But now, after almost 30 years of being on the air, they followed us. We followed them all the way through to where now we've got this affinity with this particular group that's pretty incredible. And they're everywhere, and they're proof that you can do it. That's the point.

That's exactly right if you're listening you're watching you can do this you could be 22 and be 32 and have gotten there that could happen wow how wicked weird is that that's like becoming wealthy and stuff and stuff this is stuff. This is The Ramsey personality is my co-host today. Evanston, Wyoming, Shelly is calling. Hi, Shelly. Welcome to the Ramsey Show. Hi. Thank you for taking my call. Sure. What's up? My husband and I just finished Baby Step 3 on Saturday. Yay!

Congratulations. We are so excited. Thank you. But we have a question about Baby Step 4. We don't have children at home, so Baby Step 5 isn't relevant for us. But my husband has a very generous pension plan. He makes about $112,000 a year in retirement. And so we're trying to figure out if it's reasonable for us to not worry about that for, we don't have earned income, so we can't do an IRA or anything like that. We'd need to do a mutual fund. Should we just skip over to six and focus on paying off our house? How old are you guys? He's 57 and I'm 54.

Why do you have no earned income? He said, you know, he's going to ask me that. And I, our, our reason is when he retired three years ago, we bought a foreclosed townhouse and we're spending our time remodeling it to build up some equity. He retired from the military and so we didn't have any kind of equity or anything like that. So we brought this townhouse and we're remodeling it. It was in really, really rough shape. So we're doing a lot of work on it

and focusing on that. Cool. When will that be done? Hopefully by the end of 2022, we'll have everything that we want finished, finished. And we've been cash flowing all that along the way. And what do you owe on the property? We owe $99,000. Okay. And we have probably about, I don't know, maybe $15,000 worth of work we still want to do. He takes survivorship on his military pension? Yes.

Okay. So it goes from $112,000 to $80,000 when he dies? Right. Okay. That's what scares me, is that something happens to him before you guys execute your plan. Right. And you're living on his survivorship pension until you go get a career. And you've still got debt on the house, and you've still got absolutely no money other than an income.

Right. And that just scares me. It doesn't feel like a solid plan. Okay. So I want you to start building up a nest egg. I appreciate his service, and I appreciate he's got a great military retirement plan. He obviously was an officer or something, or way up there anyway. An officer for a lot of years, yes.

And I appreciate his service, and he worked so hard for that pension that I'm a little bit afraid he's leaning on it too hard in this plan, and I don't want it to leave you vulnerable. I'm really not worried about him. I know. We talked about that. He'll be fine without me. Well, we're talking about monetarily speaking, honey. But, yeah, this is the way we plan all the estate planning around my house, is apparently I'm going to die first, which makes me rather worried.

Sharon has this planned thoroughly. But, yeah, so that's the thing. You know, I want you guys to have some money. And so if you delay a little bit and knock out this rehab and then you start some kind of income to where you can do a couple of roth iras and at least you start dumping you know 15 20 000 bucks a year over there uh at least get something going because i'd like for you to have a couple hundred grand or 500 grand in a-for house before one of you passes away. Right. Okay. We do have about $180,000 in a thrift savings.

Oh, I missed that. Sorry. I didn't know that. We do have a little bit. That gives me a lot more comfort then. If you want to finish the rehab, you know, if you want to tear into it, you could do that, I guess. But the downside of not following the baby steps here is you're not building

that NISTIG, which is your comfort. So you've got that 180. The good news is that in seven years, you know, by the time you're in your early 60s, if you don't do anything with that 180, it's going to be 360. If you've got it invested in, like I tell you to in the thrift, in the C plan, the S and the I. And so, but, yes, you have 400 grand by the time you're 60 and 61. And, you know, you'll be okay doing this. But the downside is I don't want you to extrapolate this too far. Let's get that rehab done and then start investing because I worry about,

I always want you to have more money than just the pension. Having that nest egg gives you a lot of peace. Yeah, have more options and well done on cash flow and the renovation. So that's a good step just the pension. Having that nest egg gives you a lot of peace. Yeah, have more options, and well done on cash flow and the renovation. So that's a good step in the journey. Jake is in Atlanta, Georgia. Hi, Jake. Welcome to the Ramsey Show. Hey, David.

How's it going? Great. What's up? So I'm 22, just graduated college in May. I have a pretty good job as a project engineer. Pretty much as soon as I graduated college, I needed a new car. Went out, bought a brand new car. My dad's in the car business.

We kind of talked about it, given everything that's going on behind me. A newer used car didn't make a ton of sense. I drive a long ways to work. I'm still living with my parents. I intend to live with them for probably about a year If at all possible I kind of never want to have to Get an apartment But you know with living at home with my parents

I drive a long ways to work I'm driving into Atlanta every day What's a long ways? Takes me about an hour I'm putting probably 70 miles around trip every day On my car. Yeah, and what did you

buy? Toyota Tacoma. Okay, so what, 30 grand? It was 40, but my loan is about 26. Okay. I have no student debt,

so that was kind of... And how is it you want us to help you well my question was with you know i've already put i've had the truck for about a little less than three months i already have 7 000 miles on it um you know putting those kind of miles on a truck um you know my main concern is that you, given the length of the loan that I have, that, you know, I'm going to get caught in a cycle where, you know, I'm going to need to buy a new truck before I pay off the loan, that sort of thing. So I talked to my dad, and we talked about potentially doing something where I trade my truck in every year and she did a new one. But then, you know, at that point, I'm in a cycle where I'm always having a car payment, I never have a car paid off, and I'm always losing a little bit of money. And your question is?

Well, my question is mainly, you know, what do you recommend for somebody who's in their, you know, early 20s just out of college? You know, do you think it's an absolutely terrible idea to keep my truck, or should I, you know, go into something that's not quite as reliable, but, you know, I don't have that, better off, you know, putting my money somewhere else? I perceive from the way you're asking this question and some of the statements that you've made that you don't listen to this show very often or much. No, I do listen occasionally. I definitely know your standpoint

on buying a new car. Okay. And debt, Jake. And debt. You know his stance on debt. Our stance. Everybody's. Okay.

How much money do you make, out of curiosity? $60,000. We couldn't hear you. You were breaking up. How much? $60,000. Did you say $60,000 we couldn't hear you you're breaking up how much 60 did you say 60,000 i did okay all right let me give you a formula that will 100 ensure you're a broke butt 35 year Okay? Follow the plan that you are on. Buy new cars and keep buying them and trading them in and running up miles on them, and you will be a broke-butt 30-year-old that has supported your father's company beautifully, and you will be broke.

Some of the most broke 35-year-olds I meet have continually traded for new cars over and over and over and over again in the first decade of their working life. And they started out with this idiotic idea that because they graduated from college, they deserve to be $30,000 in debt on a freaking truck. So, no, I'm afraid your dad's not going to like Dave Ramsey because I don't like his advice for his son at all. I would tell you to sell the truck, get you a cheaper truck, move out of your parents' house into a rental close to work, and save your money. And quit investing in things that go down in value like a rock, and then scratch your head and wonder why you're broke.

That's where Chevy got that, like a rock and then scratch your head and wonder why you're broke. That's where Chevy got that. Like a rock. This is the Ramsey Show. Dave here. We just launched a brand new listener survey. We want to know what you think about the show. You'll be entered to win a $100 Amazon gift card. No purchase necessary.

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