The Ramsey Show - App - My Family Doesn't Agree With My Financial Plan (Hour 3)

Episode Date: December 8, 2020

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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 the paid-off home mortgage has taken the place of the BMW as the status symbol of choice. I'm Dave Ramsey, your host, Chris Hogan. Ramsey Personality is my co-host today. Open phones at 888-825-5225. 2020 has been a very unusual year, pretty much a dumpster fire. And yet some people have, we've seen the best of them.

Some people have chosen to take a completely different attitude, a completely different way and angle on this. We are doing a giving show. We always do our annual giving show to celebrate generosity the week before Christmas, and we'll be taking your calls to let you tell your story about giving and your story maybe about receiving. We want to hear generosity stories that inspire all of us to further generosity. To get that story to Kelly so that you can be part of that show, email it at DaveOnAir at DaveRamsey.com. DaveOnAir at DaveRamsey.com. So we completely flipped our team on their head this year.

Last year we gave them a million dollars, $1,000 each to spend. There's 950 of them, and we had some folks from the Baptist Children's Home come over. We gave them $1,000 to spend on the kids. We had some other folks from the community that were serving in different ways. We gave them $1,000. And so we ended up over a million dollars given away in one day last year. That was a goal of mine. I wanted to do that someday.

And that was a lot of fun. And put everybody on buses and took them to the mall. Remember, this is back when we did things like the mall. Oh, yes. Oh, yes. Back when the malls were open. You could go. And we went over to the local mall. And our team, some of them spent their money that day.

Some of them didn't. But it was a huge celebration. Our whole cafe crew is an outsourced company that is here running our cafe, and we gave each of them $1,000. It was just a lot of fun. This year is the year of opposites. And so we decided to go the other way and change everything up. By the way, our Christmas party around here is legendary. I love Christmas.

Santa Claus is a personal friend, and I think Christmas is something that's a big deal. Jesus and Santa Claus, these are people you need to know a lot about if you want to do well in life. And so, you know, we just have a bit. I just love December. I love Christmas. And so we always have this unbelievable, epic Christmas party. Well, guess what? Hard to find a place to do that this year. So we're not doing a big, unbelievable, epic, expensive, spend a bazillion dollars on Christmas this year party.

We're doing a party, but it's going to be cheap. And we took that money, and we gave our team not $1,000, but we gave them $250 to give to someone else. Their instructions was to find a relative, a friend that had had a bad year due to the pandemic economic shutdown by the government. Someone they know that has had their life stolen by their government this year and try to help them. They've lost their job. There's a lot of people hurting. Oh, yes. And our team.

So that was $250,000. Obviously, there's 1,000 of them at $250. And we're spending some on the thing. So we took the rest of the budget and did something that was really interesting, and we let the press know yesterday for the first time. We've been working on this for about a month. And if you don't know, these guys that if a debt goes bad, there are debt buyers. They buy buy bad debt and then they call you up and try to collect from you so if you've got an old medical bill an old credit card bill an old car reposition that kind of stuff and they're calling you that company bought that debt

at a discount in other words if you owe a thousand dollars the hospital they didn't pay a thousand dollars for that debt it's. You haven't paid it. It's in default. You can buy that at a discount, a deep discount. And so we got with some of the debt buyer brokers, and it took about three months to negotiate the deal. But we bought $10 million in bad debt 10 million dollars in medical debt car repossession debt credit card debt that was all bad debt 8 000 accounts and so there's about a thousand of us here so each person had eight names to call and tell them that their debt has been forgiven.

So we were able to forgive $10 million worth of debt. That was fun. It was remarkable, Dave. The phone calls, lots of tears. Oh, yes. And people thought we were a con. Disbelief. They didn't believe.

This is a con. You call me up, yeah, what do you want really? No, we're just calling to say Jesus forgave us and your debt is forgiven. Yeah. You're dead. Ten million dollars in debt forgiveness. And so that was our Christmas party. That's our Christmas celebration.

It was unbelievable. And everybody got to call and talk to and not all the known numbers worked. And of course, a lot of people are getting calls from collectors. And so they were blocking unknown numbers. So I tried to call about 10. didn't get anybody all i got was some voicemails and a bunch of bad numbers but a bunch of our people got a hold of people and they just cry and you're kidding you're kidding who does this who does this we do yeah we do and it was absolutely one of the most thrilling fun things I've ever been involved in. Now, giving away a million dollars last year in one day was really fun.

But how about debt forgiveness for $10 million? $10 million. That's how you trump that. Yeah. That was fun. So generosity in a year like this will change your attitude because some of you need your attitude changed. Some of you are just mean. You're just angry and you're, and you're being jerks.

And you need to just go the other way. We've been yelling at you to be kind. That makes sense, doesn't it? Shut up and be kind. Be nice. Be nice. It's like yelling at your kids. Be nice to your brother.

No, seriously, some of you guys are freaking out. I've got friends and relatives who have said some of the nastiest butt stuff to us. Give you the side eye, you know, because I'm not following the rules that they think I ought to be following. Which I understand. Listen, if you want to follow the rules, I'm not mad at you. So don't be mad at me if I don't follow them. That's right. Because I don't agree with the logic that led to the rules. So I think the rules are stupid.

And so there you go. Kiss my butt. You know, that's it. So, you know, here's how you fix that. You go be generous. Yeah. No. I mean, you'd be amazed.

Just walk up to somebody at the gas pump and give them 20 bucks and just blow their minds. Merry Christmas. Jesus loves you. Just blow some people's minds, man. Some of you are in a position to do that. It'll help your attitude. It really will. Generous people are always smiling.

Because it takes the focus off of you, and you realize it's not about you anyway. It's about what we can do to be able to help others. But you're right, Dave, and I can't wait to give my $250 away. I've already got the person in mind, and I know it's going to just, they without a doubt will break down in tears. Yeah. Yeah. Because somebody was thought of them and was kind enough to do it.

You just have to think about this stuff. You do. If you get a little bit creative, there's a lot of fun stuff you can do. I mean, it's pretty incredible, you guys. That was cool. $10 million in of fun stuff you can do. I mean, it's pretty incredible, you guys. That was cool. $10 million in debt forgiven by Ramsey Solutions. Yeah, just top that one.

Wow! I'm so proud of our team. This is the Dave Ramsey Show. The very last thing Christmas should give you is stress. So our famous $10 sale is going digital for a limited time only you can instantly get our most popular audiobooks and ebooks all for just ten dollars or less get my number one best-selling audiobook the total money makeover read by me if you're serious about getting your money in order for 2021 the total money makeover is a must-have plus it makes perfect gift. Or learn what it takes to build wealth with our Everyday Millionaires e-book. And as a bonus, for the first time, we're adding Debt-Free Degree and our latest audiobook, Redefining Anxiety, by Dr. John Deloney, to our new digital $10 sale.

It's not too late to invest in yourself or a friend this year. Skip the lines and shipping delays and shop our new digital $10 sale at our online store at DaveRamsey.com today. Or call the Ramsey Concierge Team at 888-22-PEACE. Carlos is with us in Austin, Texas. Hey, Carlos, welcome to the Dave Ramsey Show. Hey, thanks for taking my call. My pleasure. What's up? So my question is, my wife and I are currently saving for a house, so baby step 3B. Good.

And I'm not really sure how much house we should buy due to some variables. So 2021, midsummer is around the time we're looking to buy. But right around that time, we're looking to try to get pregnant. So 2022, a baby on the way. Yay! So I'm just not sure how to control those variables when it comes to figuring out what percentage of our combined take-home income or income do we kind of allot.

You don't get to control the variables. God's going to do that for you. So just act like like you got a plan that's what makes him laugh um we can talk about the house part though yeah yeah the baby's gonna come when baby's gonna come and it does not affect the price of the house yeah they don't eat that much yeah i guess my my question revolves around so she would be i mean we're both working full time right now and so she would want to stay home and raise the kids and eventually go back to work part-time

and then transition to full-time once the kids are kind of autonomous. Okay, then you need to plan on doing the house on your income. Mm-hmm. So what's a fourth of your take-home pay after taxes but not after anything else is taken out? One-fourth of that on a 15-year fixed rate, a fourth of your take-home pay after taxes, but not after anything else is taken out. One-fourth of that on a 15-year fixed rate, and that's what you need to do because you can't count on her income. All you can count on her is her income is going to go away.

Right. And, Carlos, that's going to drastically change the size and the amount of house you all are looking at. What do you make? Yeah, definitely. So I make $78 a year, and my wife makes around $60. Okay. Well, you just don't count on hers because she's going to quit and come home and be a mom.

Mm-hmm. So you do it on yours. Mm-hmm. $78, and so your take-home pay is about $5,000, give or take. And so, you know, your payment doesn't need to be more than about $1,250. Okay. On a 15-year fixed. Something like that.

I mean, a fourth of your take-home pay, not counting 401K coming out, not counting income and value check except taxes. Yep. Take-home pay for purposes of this calculation is taxes out. Net of taxes, what are you getting home with to run your house with, and that's when it's properly withheld with no shortage of tax money so you have a tax bill and no big refund. When you've got the proper amount of take-home pay,

one-fourth of that number on a 15-year fixed is what you ought to do, and do it on your income because you've already got a plan. The plan is she's not going to work. That's right. And, Dave, I have seen so many people get approved on dual income only to a year or two later do this very thing, and then they're stressed out and wigged out because they qualified under both incomes. End up with a 50% house payment. Yes.

Chris is in San Antonio. Hey, Chris, what's up? I'm doing well. How are you doing today? Better than I deserve. How can we help? Well, my wife and I, we went through the total money makeover back in 2009, paid off about $60,000 in debt in 22 months.

Good. And after that, we had a kid the next month, and that was our goal to get it all paid off before we had kids. And now we're back into a little bit of debt. Wait a minute. What kind of debt are you back into? Just cars. Why'd you do that?

Two houses and two cars. Why? Well, we needed another vehicle, and the ones we bought were about as cheap as we could find. They were 100,000 miles already on them. Yeah. So you borrowed money. We didn't have the money to do it. You got out of debt, and then you borrowed money again.

Well, it was about eight years later and you borrowed money again well it was about eight years later we borrowed money again but um we're getting close to paying off our south side home uh it's a rent home and uh trying to find out what we should do after we paid off with the money uh my wife and i we have different views on what we want to do i wouldn't pay it off till you paid off with the money. My wife and I, we have different views on what we want to do. I wouldn't pay it off until you paid off your cars. Okay. Okay, the stuff we teach is called the baby steps. Does that sound familiar?

Yeah. Okay, and baby step one is $1,000 saved. Baby step two is you're debt-free but your house. We don't talk about paying off real estate, houses, and rentals until you get your consumer debt paid off and the only reason is see my wife now that's the conversation we have dude you get to go do whatever you want to do i'm tired of arguing with you okay i've already taught you how to do this and you went back into debt that's aggravating to start with and now you're arguing again after you called for permission are you you know you do whatever you want to do okay that's fine go do your plan you know what ours is yep

just do it it's not this is ridiculous open phones at 888-825-5225 christmas is supposed to be the most wonderful time of the year but if you and your spouse aren't on the same page with money then all the joy of the season quickly turns into stress and money fights. Do not let this happen this year. Give yourself a gift that's truly marriage changing. The Ramsey Plus Marriage Bundle will help you take the stress and confusion out of money and learn to manage money together as a team. It comes with a Ramsey Plus membership and Rachel Cruz's latest book, Know Yourself, Know Your Money. You'll uncover why you handle money differently so you can start having healthy conversations about where you want to go as a couple. Then you'll learn how to create better lifelong habits so you can make those dreams happen

together. The Ramsey Plus Marriage Bundle, the best gift you can give your marriage and your money. Go to DaveRamsey.com slash store. Get it. Go to DaveRamsey.com slash store. Get it right now. DaveRamsey.com slash store. All right. Gee, Craig is up, and Craig is in Louisville, Kentucky. Hi, Craig.

How are you? I'm doing great. Thanks for taking my call. My pleasure. How can I help? I'm divorced with two kids. My kids are 22 and 25. I do have a will. I'm interested in getting a trust and putting my assets in it, and I had a two-part question on a trust.

Can I put in the trust that my real estate properties cannot be sold i don't want i don't want my kids just to to sell these properties and buy sports cars and depreciating assets and things like that uh you can um i have chosen not to do that i've got a bunch of real estate, and instead I have trained my kids, and if I don't think my kids are going to be responsible with God's money, I am not going to leave it to them. And they know that.

When they get an inheritance as a Ramsey, they get responsibility to manage God's money properly and wisely. If I think they're going to go buy a bunch of crap with it and be self-serving heathens on the back of a yacht snorting cocaine or something, I'm not leaving them any money because this is God's money, and I'm not going to leave it to his stuff for them to do. That's the way I view it, and so what I would do is begin to work on them as young adults and say,

the way you're in the will is if you and I have an understanding that you are wise, and if you're going to be a doofus, I'm not going to leave you money because that just makes you a really rich doofus. Okay. Well, that's the same outlook I have on it. I don't have a lot of interest in real estate right now, but that is my hope that they will. Well, I don't even necessarily care if they have an interest in real estate, but they have an interest in being wise and conservative and kind and generous

and not self-centered, and their purchases and their investments would reflect that. Does that make sense? So I don't care if they keep a particular piece of real estate i wouldn't put a burden on my kids to say you keep this real estate because it's your dad's and i don't do that uh family family dirt now you sell it when it's time to sell i want you to be wise but i want you to do it through the lens of uh this is not about the whole world's not about you. And if I don't have that, then they're out of the trust. My trust actually says that. They're not in the trust if they're not walking with God.

And the brother and the sister, the other one, can get them out. The other ones will vote them out if they're not doing it. So they're going to do this stuff. But again, which item they keep or don't keep, I don't care about. It's their outlook and their decision-making process. This is The Dave Ramsey Show. Thank you. Open phones at 888-825-5225. Don't forget Rachel Cruz's latest book, Know Yourself, Know Your Money,

is bundled with Ramsey Plus. The Ramsey Plus Marriage Bundle, the best gift you can give right now. DaveRamsey.com slash store. Check out the Ramsey Plus Marriage Bundle, the best gift you can give right now. DaveRamsey.com slash store. Check out the Ramsey Plus Marriage Bundle. It's everything. Financial Peace University, the EveryDollar app that connects and syncs with your bank. It's got the Baby Steps Tracker app. It's got all of the different curriculum in it, including financial peace.

And the bundle includes her new book know yourself know your money which comes out the first week of january justin is with us in hartford connecticut hi justin welcome to the dave ramsey show dave how you doing thank you for taking my call my pleasure sir how can we help so i just recently discovered your stuff a little while ago a family friend of mine introduced me to what you do, and it really got me motivated to start becoming debt-free. Cool. And so I was hoping to get your opinion on a few things.

So I have some debt. I have about $46,000 of total debt beside my mortgage. Okay. So I recently paid off my credit cards. Good first step. And yeah. And so I do have some money in my savings that I would like to allocate towards my debt. But my question was, I saw that you preach that you should pay off your debts basically like from the smallest to the largest debt. Correct. So my second largest, I have three total debts besides my mortgage. My second debt is a truck that I bought a few years ago. It was not the greatest decision, but I did it. And so I owe $21,000 on my truck. So my question to you is,

do I sell the truck and buy something cheaper, or do I pay the truck off as fast as possible and then go to my student loans, which are $25,000? So you only have two debts left? Besides my mortgage, yes. Yeah, so the top of your debt snowball is $21,000. Okay, because you knocked out the credit card, the little one. and how much is in savings i have about twenty five thousand dollars in savings but i will be getting married in about six months so i'm putting aside approximately eight thousand dollars for that so i have the honeymoon or you're contributing to the wedding or for my wedding yes okay most of it's already paid for. And what's your income? I make between $75,000 and $90,000 per year.

Okay. And you have $25,000 in savings. Correct. And you need $8,000 in six months. Very good question. I like the way you're thinking through this. So here's the rule of thumb on cars that we use. We use two guidelines as the acid test on whether you sell the car.

Number one, you don't want things that have wheels and or motors totaling up in your life, because they all go down in value, to be more than half your annual income. This car does not violate that. Okay? Okay. Number two, can you be debt free except your mortgage if you lean in with intensity gazelle intensity in two years or less by keeping the car answer again is yes you can be okay so if you like this car, I would keep it.

Okay. It's a truck, you said. What kind of truck is it? It's a Toyota Tacoma. Oh, it's a good car. Yeah. We call them tacos. We've got a couple of them in the family.

And they're really reliable. They're great vehicles. Yeah. My son Daniel drives one, and Rachel's husband Winston drives one. I love it. I don't want to sell it, but I would if it would. Yeah, and I appreciate your heart. I heard that.

Your attitude towards all this stuff is what's going to cause you to win. So what would I do? Now, you've got to hold your breath a second. You ready for the roller coaster ride? Yes, sir. Put your seatbelt on. I'd pay the truck off today. That leaves you $4,000.

You have six months to get another $4,000 together, making $90,000. I think you can do that. Yeah. Okay. Because you've got to have the $8,000 for the wedding. I don't want you to mess the wedding up. Okay? Right?

Okay. We're going to pay the truck off today. You no longer have a truck payment. And that freaking truck payment is $600, isn't it? It's about $490. Okay. I was close. All right.

So, yeah. So that's $500 a month that's freed up. So I would pay the truck off today. I would quickly save $4,000, set the wedding money aside, then go back to attacking the student loan and um now how fast we're gonna pay off 25 000 with no truck payment and the wedding's all set aside you might be done by the time you get home from the honeymoon that sounds great i mean two grand a month will do it yep in a year

yeah four grand a month i'll do it in six months. Justin, you've got an opportunity, my friend, to reset your whole financial picture by taking these few steps and really starting your marriage off on a whole nother level, my friend. Yeah. How old are you? I'm 27. 27 years old. Wow. I really hope, because you sound extremely intentional.

I hope you hear this and you go, you just got a playbook, right? You just heard from the icon, the playbook. This is exactly what you need to do. Just follow it step by step. So if you do those three things, okay? We're going to pay off the truck today. We're going to stop everything and pile up cash until we get to $8,000. We only need $4,000 more to do that because it leaves us $4,000.

Set that aside, and then you tear into that student loan. By this time next year, if you don't have a student loan paid off, you're lame. Because that's $2,000 a month, man, out of your budget, and you don't have a $500 car payment anymore, right? That's true. That's true. So all you've got to do is lean in. You can knock the crap out of this thing. I don't know if you'll quite get it done by the wedding, but by next Christmas you'll be done.

And that's setting you up to go win. You guys, you're going to kill it, man. Yeah, you are. You got this so dialed in, and we didn't skip a beat here. Notice, we kept the truck, and we got married, and put your part in for the wedding. Everything worked. It all worked together there. Just follow the recipe.

You're there, buddy. Hey, hang on. I want you to go through Ramsey Plus. I'm going to give you a one-year membership as a wedding gift for you and your fiance i want the two of you going through financial peace university together to fine tune this stuff and get on the same page because this is the number one area of marriage stress is money stuff and get you guys on the same page with your new marriage that'll be our wedding gift to you hold on kelly will pick up i you, Dave, him being that young and being this dialed in, he had to have gone through our foundation's curriculum. He had to have. He had to have been in high school,

listening to this stuff and going, you know what? I'm going to be different. You know, sometimes it's just your attitude. Yeah, it is attitude. You know, his attitude was what I need to do. Put me in, coach. Yep. I'm going to go do it. Grab the ball, run through that hole between the A-gap. Run the ball through the A-gap. I mean, it'll be open because Chris Hogan's going to block for you. I mean, you know, so run through the A-gap and you're going to have a touchdown. Because he just put me in, coach, instead of going, hey, coach, I want to call the play.

Right. I've never been anywhere except on the bench, but I want to call the play. You know, it's a different attitude, isn't it? It is a different attitude. You could hear it in his voice. I love the guy. Because he's going to win. He's going to kill it.

He's going to win. He's going to kill it. He's going to win. And for a lot of you out there, if you're sick and tired of that frustration and irritation, I want you to decide, because you can too. Yeah. The recipe's there. You just have to apply the want to, as my

grandmother used to say. People will wish to, but you've got to want to. And that's where you make those daily decisions. Man, these people keep shipping me the wonderful gifts. And they all seem to be covered in chocolate. And it's a problem.

So I know the recipe. The recipe is don't eat that crap because I'm going to be big as a house again. I lost 37 pounds this year, and I don't want to go back. You're not going back. But I like that stuff. Don't put that stuff on my desk. You're the devil. That's the devil.

I know the recipe. So is Patty in charge of deleting these things? I'm going to have to put her in charge. Look, give that crap away. Don't even put it on my desk. I love it. I love you. Thank you, people. You're very sweet. And all you friends and business acquaintances. Send me non-chocolate gifts, people.

Don't send me anything that's edible. Non-chocolate. Nothing that's edible. Period. Because I don't have an off button. Put me in, coach. I know the recipe. Back away from the donuts. This is the recipe, right? Oh, my goodness.

We're all just alike is my point. We all have to struggle with this. The guy in my mirror is my problem. The guy in your mirror is your problem. And that's why Chris is saying anybody can do this. This is the Daveave ramsey show our scripture of the day jeremiah 29 13 you will seek me and find me when you seek me with all your heart byron pulsifer, dedication is belief transitioned into action, which is transformed into change. Chris Hogan, Ramsey Personality, is my co-host today.

Rebecca is with us in San Francisco. Hey, Rebecca, welcome to the show. Hi, Dave. Hi, Chris. How are you today? Great. How can we help? Hey, I'm a divorced person for about 16 years now. And I purchased a house 12 years ago with a boyfriend who is a contractor in hopes of fixing up this home. And needless to say, we're no longer together. And I made pretty good financial decisions this whole time up until now.

I'm in the process of refinancing my house. I'm sorry I'm a little nervous. That's okay. You're doing fine. You're doing good. We've never lost a patient. You're fine. Okay. I'm in the process of refinancing my house and I just don't know if I'm making the right decision. So I'm faced right now with maintenance on the home uh i'm looking at the fence right now it's falling over i need an hvac system so i'm not using my heat um it's going to need a new roof in a couple years i have good bones i'm not going anywhere my daughter you're how old i'm 55 you got kids at home my daughter's, pardon me? Your daughter's how old? She's 28, and she's pregnant right now with my first grandbaby.

So I'm not leaving. And my only debt is this house. Okay, so you're refinancing it to get him out of the picture? No, no, no. He's been out of the picture. So the property is in your name and the mortgage is in your name absolutely his name is not on anything no no good okay he was just okay so this is a simple do i refinance and do i what's your income well this is the deal i'm gonna you know whether i refinance or i use the money out of my Roth IRA to do these projects that need to be done.

I'm 55. What's your income? $72,000. And what do you owe on the house? $234 right now. And what's the house worth? $550. Good.

And what are the repairs that you're proposing going to cost? Well, I have a roof, $12,000. An HVAC, probably another $12,000. I have a fence that's going to cost $10,000. I have a big backyard. And just, you know, I have a little maintenance around the house. Okay. I want you to do one of those a year out of your income.

Okay. My interest rate right now is 4%. Yeah, but I don't want you to go further in debt. It's okay to refinance, but I don't want you to go further in debt. Yeah, that's what I was going to do, and at the last minute I decided to get some cash out to do all these projects. So you've already done it? No, and I didn't even bring up my kitchen.

My kitchen has two cabinets in it. No, no, Rebecca, have you already done this? No, no, no. Okay. I'm ready to sign this coming week. Okay. You can do what you want to do. I want you to be out of debt, and I want you to cash flow your repairs.

It's $1,000 a month. It's $1,000 a month for the next three years. So where do I get that money from? I mean, the money that I make. If you can't afford to save $1,000 a month, you can't afford the extra payments due to having borrowed another $50,000. Okay. Yeah, it's going to lead to the budgeting, Rebecca. Like you locking down in on it and really digging in and looking at those numbers.

Yep. This is your, your home is your largest asset. So the last thing you want to do is just treat it like an ATM where you're pulling money out of it. And so what Dave's detailing for you is the crock pot way of you saving up cash to be able to pay for these repairs doing one per year. Yeah. Obviously looking at it, your kitchen renovation falls way low on this list. Your HVAC, your roof. HVAC will be first and the roof is second. And I'd probably do the kitchen third. I'd probably do the fence last or the fence third.

I don't care. Yeah. But the HVAC and the roof are your first two years, and they're $12,000 apiece. That's $1,000 a month. Yeah. Now, I know, Rebecca, the bank made it seem easy. Of course they do. That's what they do.

Remember, if it's got an interest rate attached to it, that's the penalty you're charged for using other people's money. We want you to do it the slow way, where it doesn't have a penalty called a payment with it. As a matter of fact, you could budget $1,000 a month for the rest of the time you live there and continue to fix that house up and upgrade it and do all kinds of really nice things to it and refurnish it and do all kinds of things for the next 10 years. I mean, you really could. There's nothing wrong with that.

Because you got a good low house payment in Sanford Freak and Cisco. I mean, you owe $200,000 in that market. That's amazing. That's big. Yeah, and so, you know, and your daughter with the grandbaby on the way needs to plan on creating an income because she needs the dignity of being able to run her household, and that may be under your roof for a little while or it may not be, but that's up to you. And that can add some value to the situation.

That's good for her, by the way. Yeah. So, yeah, that's what I would do. I agree. And, Rebecca, don't want you yanking money out of your Roth because that's money you put away for your future. So don't steal from yourself. Jenna's in Los Angeles. Hi, Jenna. Welcome to The Dave Ramsey Show. Hi, Dave. Hi, Chris. I am so excited to speak with

y'all. I've listened for about like four years now. Thank you. How can we help today? Okay, so background. I'm 20 years old. I'm currently a junior in college, and I have a part-time job. You're going to be happy to hear I have no debt and about $22,000 right now sitting in my savings. All right. So, yeah. So the main gist of my question is that I have, don't be mad at me, I have one credit card of my own, and then I have two attached to my mom that she's had with me since I was about like 16

to help build my credit. My mom and dad both don't follow your plan and neither does my financial advisor who manages my Roth IRA right now. So it's hard for me to get good advice about wanting to cancel all these cards because they are feeding into me, you know, different information than what y'all preach. So I just want to know, should I get off the card that I have attached to my mom since she pays my tuition on that and it keeps my credit score good? And how do I do that without, you know, I guess damaging, I guess I will damage my credit score. So I just want to hear your guys' opinion on that. Yeah.

Well, I think you know our opinion. The only question is you're just going to decide at 20 years old what of this you're going to do and what of it you're not going to do. I mean, you know, you really didn't think you were going to call us and we were going to tell you to keep these credit cards regardless of your idiot financial advisor. You know, of course we're not going to do that. I guess the second question with that would be, do I cancel, or not cancel, but do I switch financial advisors if he doesn't agree with the plan? Yeah, without a shadow of a doubt.

And here's the deal. What your mom and dad does with their credit card is their business, but as far as what you're doing for you is what you can control. Yeah. And you got to decide and you can decide for while I'm in college, I'm going to go along with this. And when I get out of college, I'm canceling all the credit cards and I'm going to go on my own or you can do it now or you can do it never and live the same life your parents have lived. And, um, you know, none of that's, you know, the end of the world or something, but this is just about your autonomy, your ability to make your own decisions,

and, you know, how much you want to stand on something at this stage of the game. But overall, you never have a financial advisor that you have to talk into doing what you believe. That's always a bad idea. I had a CPA come in one time interviewing to do our books years and years and years ago and he said you know it's okay if i don't agree with all of your principles i said well no it's not okay why would i want a dumb cpa you know i mean that's that's kind of silly. To handle your money. I don't agree with your financial principles, but I'm going to keep your books. Yeah.

I mean, how dumb butt is this? Yeah. That's dumb butt. No. You know. And I'm like, well, no. You're not going to be my CPA. This is not hard to interview over.

I was kind to him. Of course you were. I was. No, I know. I believe it. I believe it. We're still friends. He can't work here.

Yeah, you can't. Nope. It's not how it works. Not at all. You need it. We're still friends. He can't work here. Yeah, you can't. Nope. It's not how it works. Not at all. You need to get rid of him now. You can get rid of your parents' cards now or later or never. Your choice. Yeah.

But you keep growing in your knowledge, young lady. Yeah. You get to where you feel good about making your own decisions as a grown-up person. That's right. That puts us out of the Dave Ramsey Show in the books. 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.

Have a friend or family member that needs a daily dose of Ramsey advice in their life? Let them know about the Ramsey Call of the Day podcast. It's a quick hit of advice about life and money in under 10 minutes. Check out the Ramsey Call of the Day podcast wherever you listen to podcasts.