The Ramsey Show - App - My In-Laws Won’t Save for Retirement!

Episode Date: April 20, 2022

Dave Ramsey & Rachel Cruze discuss: Dealing with a toxic work situation, Whether or not to convert to a Roth, What to do when your grandparents want to give you a whole life policy, How to think through selling your business. Want a plan for your money? Find out where to start: https://bit.ly/3nInETX Listen to all The Ramsey Network podcasts: https://bit.ly/3GxiXm6

🎵 Live from the headquarters of Ramsey Solutions, this is The Ramsey Show, where America hangs out to have a conversation about your life and your money. I am Ramsey personality, Rachel Cruz. And for the first time in history, my, my co-pilot is Dave Ramsey. About five minutes before the show started, I was like, what if you let me take the lead just for an hour of the show while you're in here? Because that has not happened yet with the Ramsey personality where Dave is in the, is in the co-host seat.

How are you feeling over there? It's kind of like when I was teaching you to drive. Just bracing. I was teaching. I'm trying to not touch the brake on the passenger side while you're supposed to be braking at the red light. Right before we went live i was like and which buttons do i push to get the colors in that's real that's real comforting right there oh man well it's going to be a fun hour so it's a free call anywhere in america 888-825-5225 and we'll start off with myra in Lubbock, Texas. Myra, welcome to the show.

Hello, Rachel. Hello, Dave. I love your show, by the way, Rachel. Oh, thank you. Yes. Quick backstory before my question is I started working part-time at an advisor's office. And it's been great. The person that was full-time was off for medical

leave and she got better and now she's doing part-time and so we're working together and things like that but prior to that there was other people helping in the office that were just interns and so from the beginning you know I was having to pick up from where they left off to what they knew and because she she had to leave um unexpectedly um to do her medical leave and so point is I just I just picked up where everybody left off and I was doing my best trying my best and things like that but now that she's come, it's been very difficult because she could be very aggressive with her words. And she doesn't use that, the tone of voice that she uses with me. Well, she changes her tone of voice when the financial advisor is not around.

And she said things to me in the past, like, I'm the full time, don't touch my things on my desk. And it's just little petty things to me in the past, like I'm the full time, don't touch my things in my desk. Um, and it's just little petty things, you know, like I don't want my, your lotion on my desk. Um, don't move my, my paper clips and things like that. And my question is, how do, how do I go on if I feel that it's just, it takes so much energy because when I'm in the office, I'm always trying to not do something that's going to tick her off or she's going to be

passive aggressive again, or she's going to be rude to me. And there's occasions when we work together and it's just so draining. Sure. Absolutely. So Myra, why did she leave in the first place? You said medical leave? Yeah. so her cancer came back, and thankfully she was able to take care of it. And now her doctor is asking her to not be full-time so that she can, you know, slowly back into it. She is older, and, you know, she has, like, no filter and things like that, which I am young, and I am not as good as I wish I was. Myra, have you confronted her at all? Have you sat down and confronts, you know, that's kind of a strong word, but have you asked questions to her of, hey, do you realize kind of how you're

coming off? Is everything okay? How are you doing? Because we find here, you know, at Ramsey, we have, you know 1,200 team members. So working on interpersonal relationship is something I feel like we do on a daily basis. And usually you find that people who are hurting can tend to hurt people, right? That's saying hurt people hurt people. So there's a part of me thinks that there's probably a level of her that's stressed, freaked out, fearful of her own story and kind of what's going on. And it's coming out on you which is not okay but have you talked to her about it at all? I have not said it the way you said it and I think

the way you you're asking me to approach it makes sense. I have talked to the FAA and I have told them the situation and he's told me you know she's really hard to work with, and other people have told me, you know, just she's a little territorial and things like that. And so it never gave me the impression that she was acting this way because of the current situation. It's giving me more of the impression that that's just the way she is. This lady, Myra, this lady's scared. And she's been scared a long time.

And all this crap is to cover over her fear. She's afraid for her job. She's afraid for her health. She sees you as a threat. And so the good news is you're just a sweet lady. And I think if you'll just look at her as someone who's scared, kind of put a little different picture when you see her instead of the big old mean lady that's rough and tough and hard to work with. Instead, look at her as a little child who's afraid. And how would you treat someone that was afraid?

With pity and with kindness. And you'd help them. And how can I serve you what can i do for you and she'll calm down eventually and if she doesn't it's just a part-time job go get another one it's not worth working with jerks that's the other thing so i mean leave it ain't that big a deal uh but you don't don't in other words don't let yourself be subjected to a toxic situation because you don't because you refuse to walk out the door on a part-time job. So just say, side or not, out of here, baby, done.

But if you want to try to work on the personal idea of it, which is why you called, I think you just treat her with unbelievable levels of kindness. And just because I'll guarantee you this lady is really afraid. She's afraid for her job. She thinks they're going to kick her out because she was hard to work with before, and then she had a cancer problem, so she's unreliable. She's afraid they're going to put her on the street,

and you're going to take her job if you look too good. How can I help you? You've been through so much. Man, I just want to support you. You're kind of a legend around here because she is. Legend may be not the way you want to be a legend, but she's kind of a legend around here because she is legend maybe and not the way you want to be a legend but she's kind of a legend it's a true statement nonetheless but i wonder too even after you know how work how the workplace has changed so much since covid dealing with people now via technology there's not that that in-person connection as much as

much anymore within companies. I mean, obviously, Myra, it sounds like it is for you. But you talk about this a lot in Entree Leadership, though, of how to deal with these situations, that it's not going around, obviously, and talking

and bashing her to other people. So the fact you went up, Myra, was good to your leader, I think was a smart move. But also to have the ability to sit down with someone that you work with, especially if it's for a long period of time.

You guys have history, and it sounds like you guys are pretty hand-in-hand with what you do. Getting that, it is key because it's exhausting. Like if you go to work and you don't like the person you're with all the time, that's a reason to dread work. I would give it a couple weeks of just killing her with kindness. And if you can't get anywhere and if you continue to have just an abusive situation, I would just go leave. Just go get another job. It's not worth it.

And, I mean, you talk to leadership and their answer was a lame-o, horrible answer from leadership. Well, she's always kind of been that way, which means we're scared of her, too. Oh, my God. So we don't have anybody like that that i answer that about you know you get to work somewhere else if you're going to be a butt around here so we don't do that but um i mean you can have a bad day you can have a bad week but you don't get to just have the reputation of being hard to work with the grouch that's silly this is the ramsey show you've got a lot on your plate a job your home your marriage and your marriage, and your growing family. While you're enjoying the present, you can't help but think about your future and your finances. As you explore your options,

consider Christian Healthcare Ministries, or CHM, for your health care. Their generous maternity program and budget-friendly monthly programs have been a blessing to members welcoming children into their families. Visit chministries.org slash budget to see if it's right for you. Christian Healthcare Ministries is a Ramsey Trusted Provider. Welcome back to The Ramsey Show. I'm Ramsey personality, Rachel Cruz, along with my co-host, the man himself, Dave Ramsey. All right, we're going to go to Dave in Grand Rapids. Hey, Dave, welcome to the show.

Hi. Hi. How are you? Doing great. How can we help? Okay, so I guess I'll start out maybe different. I have every one of your books, Dave. I've read them all. I had

your tapes, educated both my children who are 30 and 33 on your logic of how to stay healthy, stay safe, don't fall into the pitfalls. And I've also led that in my wife and our lifestyle. Good. So I followed all the steps, right? I have a mortgage that we paid off on our home last year. Wow. I'm 65. My wife is 62. She took her first social security check last week. I had her retire after 40 years of work. She just didn't want to do it anymore. So I said, that's it. You're done. So we did that. I have about $600,000 in a 401ks. $65,000, as I said, don't plan on retiring. Love work. Sales engineer for a company, just love work. And for health reasons, continue working your mind.

Life insurance, I mean, health insurance, I mean health insurance. I don't fall into that category, so I get health insurance by working. But the question I have today that I don't find in your book, went to a class on how to save taxes and money, just a class that was taught at a local school. And the thing he said is your 401K, you start doing a roth conversion now so you're taking the money in my 401k which are not roth and transferring that over before you get to 72 and and that would be a good thing to do and i'm going to turn it over to you well um the tax bracket i'd be would be 22 yeah probably and i have room to do that

the benefit the benefit of it all being in roth is if you're going to leave it alone it's going to continue to grow tax-free and you can leave it in there growing tax-free where if you don't you've got to begin the required minimum distributions the rmds at 72 and a half like he's like the person told you that is correct information so you're going to have to begin drawing down on it if it's in a traditional at 72 and a half whether you want to or not you're going to pay the taxes on a little portion every year okay because the irs wants their money so uh if instead you have moved it to a roth by then um all at once or a little bit at a time over five years or whatever uh you've already paid all your taxes at that point and it will grow tax-free from

then on if you're going to turn right around and pull it back out within a few months or a few years then that doesn't do any good if you're probably not turn right around and pull it back out within a few months or a few years, then that doesn't do any good. If you're probably not really touching the money, it'll probably make sense to do that because you probably got another 20 years before the money's ever accessed really then, like to 85, okay? Right. Or 95 or whatever you live to. Right, right. Yeah, right. My dad's 90.

Yeah. So, again, the faster you're going to use that money up, the worse the idea is to move it to a Roth. And I think what I'm hearing you say is you guys are in really good shape and you probably don't need to access this money ever. No. I have no credit card debt. You know, I paid the cars off. You're still working. Yeah. Yeah, I'm no credit card debt. You know, I paid the cars off. You're still working. Yeah.

Yeah, I'm still working. But basically, if we take $600 and we pay taxes on it, it looks a lot like $400. Right. But it's going to look like that anyway when you pull it out, out of a traditional later on. So you're going to get the hit sometime in the next decade one way or the other yeah so you might as well put it in there and let it grow tax-free because i think you're going to be leaving it alone it's good because when you start to transfer it that's you have to you have to have the ability to have the the cash though to pay those taxes well if you got that got that, then that's even better.

But in his case, he would just use some of the money to pay the taxes. Yeah, he would reduce the balance from $600,000 down to, you know, he's going to give up $200,000 now or give it up later. The downside is you don't have the $200,000 that was going to taxes growing from now on. Through it, yes, exactly. Until you had to pull it out. But you got the required minimum distributions beginning at $72, half used to be 70 and a half now anyway so i probably i don't think that's a bad suggestion it's it's a weird suggestion because you don't hear that from the

financial community very often why but um because they've been anti-wrought don't do a roth if you're over 55 because it doesn't have time to grow. Okay. And so, by and large. But I'm 61. I'm not touching mine. I moved everything into Roth years ago. And I put everything into Roth now, which is the same thing, really. Like our 401k here at the office, I dump all mine into a Roth 401k. And I pay the taxes and move the match over into Roth at the end of every year.

And do Roth personally. So, you know, all that. Because I'm never going to touch that money. That money will be going to the kids. I mean, it's not going to – because I won't need it. I've got other sources of income. That's good. All right, up next is Sam from Tampa.

Hey, Sam, welcome to the show. Hey, thank you guys very much for taking my call. So I have a question in regards to whole life insurance. And I've been listening to the show for several years now. I'm a big fan. And Dave, I know your opinion on whole life versus term. However, I recently got married nine months ago, and my wife, she's 27 years old. Her grandparents purchased a whole life insurance policy for her

when she was born. So they've been paying it for 27 years now. And essentially, her grandparents are transferring it to me. And so I can either surrender it now and get a basically about $5,000. Or I can continue to pay in about $18 a month. And, you know, get the I think it's $40,000 worth of life insurance coverage, and it's a savings-type account where it accumulates, and we can surrender at any time. So I know I would never buy a whole life insurance policy based on your guidance. I would only get the term. However, in this case, it's being transferred to me, so I'm trying to find out what your advice is on this. That's a great question sam so i i would actually my husband and we had kind of a similar situation from other family members kind of thing and kind of exactly basically the same thing had a policy um for us as well and we immediately just cashed it out and opened a

mutual fund and put that money in there because it's going to grow uh so much more you're going to have the growth is going to be insane especially since you guys are so young um in something like a mutual fund versus sitting in that whole life account and then you guys just go get term insurance um for you and your wife and so you're keeping your investments and your savings separate from your insurance but i would um i would circle back are her are her grandparents still living her grandparents are still living and i just haven't gotten a chance to talk to the financial advisor to get the details on it you don't need to have

a discussion but it's not a financial advisor it's a it's an insurance agent but i would financial advisors don't sell this crap but i would wrap around to the grandparents though and just out of just i think honoring them and what they've done because their heart in it was really good for her right hey we're going to set this up for you and all of that and just wrap back around and say hey you know the gratitude that you guys have that you know you got five thousand dollars and that's amazing and how thankful you are but hey here's our plan going forward. Just so you're aware, we're going to get, you know, our life insurance over here. And we're actually going to put this in an investment. We're really excited about it because we hope to use it for a down payment on a home down

the road or whatever it is. But at least giving them that dignity and honor of letting them know what you're doing with it. Because I think that that's, I mean, it's a huge gift which is very kind yeah if you want to go depending on how touchy this is with the with the grandparents you could sit down with a smart investor pro and open a roth ira and just put the money into the roth into good mutual funds and then you can show grandpa hey grandpa this y'all get a great thing for her thank you so much or she could say this even better than you saying it and we met with our financial advisor and we decided to put it in into an investment and so we moved it over to there but boy you gave us a great jump start on there and here's what this

mutual fund's done for the last 70 years it's averaged you know 11.2 percent for the last 70 years it's really exciting and you can show that you didn't go to vegas with the money or buy a lotto ticket which is your grand her grandfather's fear that you're an idiot, right? And so you just kind of got to prove that you had a plan. And the more she says, Grandpa, thank you for this, and we talked about it, and we met with our financial advisor. You don't need financial advice from their financial advisor because they're not a real financial advisor.

Real financial advisors don't sell cash value insurance. Only insurance people sell them. Financial advisors only believe in term. This is the Ramsey Solutions is Ryan and Michaela. Hey, you guys. Welcome in. Hey, guys. Hey, how's it going?

Good. Well, you're standing on the stage for a reason, right? That's right. Your journey as you've become debt-free. Absolutely. We are excited. Incredible. Incredible, you guys. Congratulations. So where are you guys from?

We're from Knoxville, Tennessee. Nice. Go Vols. Go Vols. What part? Westside. Nice. Okay. My husband grew up in the Bearden area. Love it. Did you go to Farragut?

No, I actually grew up in Morristown. Oh, okay. Nice. Knoxville's awesome. That's so great. All right, how much debt did you guys pay off? So we paid off $193,000 in 32 months. Woo!

Oh my gosh. We did. Amazing. In 36 months. 32 months. 32 months. And how, oh my gosh. Okay, so what kind of income were you guys making during that time?

We started about $107,000 and ended about $170,000. At $, oh my gosh. Okay, so what kind of income were you guys making during that time? We started about 107 and ended about 170. At 170, so you got a big jump. That's awesome. And what do you guys do for a living? So I'm a teacher. And I'm a pharmacist. And you're a pharmacist. So what kind of debt was the $193,000?

19 was a car and the rest was student loans. Whoa! Where'd you go to school? UT. I also went to UT. Yeah, we both did. But pharmacists. Yes.

Yeah, so the pharmacy school bills were it. That was the bulk of it for sure. So when did you guys graduate? So I graduated May of 19. Okay. And I graduated in 2021. Okay. Whoa, just the other day. Yeah, just the other day. Okay. And I graduated in 2021. Okay. Whoa.

Just the other day. Yeah, just the other day. Yeah, so a part of this was we actually cash flowed her master's degree. Oh, wow. So we're super excited about that, too. Amazing, you guys. How long have you guys been married? A little over two years now.

Okay. So 36 months ago, or 32 months ago, I'm sorry. What started this journey for you guys? Because this is huge. People keep this kind of dead around especially student loans for decades so it was my last year of pharmacy school and i had just gotten my job offer from where i was going to start after i graduated and all i could see was dollar signs right new car new house new clothes everything and i'll never forget she turned and looked at me and said don't you have a bunch of student loans to pay off? I'm like, nah, babe, I'll just pay them for 20 years and they'll be

forgiven. Perfect. And luckily, later that week, I had the wisdom to start looking and I realized that I had no idea how to manage money. So it was my first job actually making real money. And so I came across a familiar face. We actually used y'all's curriculum in pharmacy school. We had a personal finance class. Oh, wow. So kind of revisited those aspects, principles, and just took off with it. Drank the Kool-Aid, like you might say.

So went right in. Never looked back. Very cool. Very cool. So Michaela, you're like, okay, you got some student loans, and he comes back with a plan. Yeah. So it was definitely, you know, you see that money, and it's like, yeah, we want a house right now. And just to put this into perspective, for the past 32 months, we've been living in a one-bedroom apartment, just us.

And we've had all this income, but it's been going to debt. So we've definitely made those sacrifices. And we've, I mean I mean when we say one bedroom it's like a small one bedroom and so to like see all of our friends getting houses and starting to have families and all these things and we're like you know we're really dedicated to this we're going to get out of debt and we chunked at it and we cashed a little bit masters and we made some mistakes along the way but we definitely it was worth every every minute that's incredible because again like you said a lot of people kind of jump in and when you get the big paycheck and you're like dang we can do a lot of fun stuff but that less than three

years of sacrifice now yes has completely freed you guys up okay so we're um what did what would you say the key of getting out of debt is when people are asking because they're hearing these numbers which are just insane. I think we each have like kind of our difference. So like there's always the free spirit and the, someone who's more like tight. I would definitely say I'm more of the free spirit. Even though it was my idea.

I think for me it was definitely like communication and like having that visual. So I'm a teacher. So obviously like need that visual piece. And so we had like a thermometer and we like colored it in different colors. You know, we got to, I was like, what grade do you teach so i was teaching third grade yeah so um definitely have that visual piece and he picked out the color and i got to color it in and it was just a really it was a huge team effort but the communication piece for sure yeah for me it was all about being content with what we have so rachel i read your book love your life not theirs and that was super helpful for me because like she alluded to you know we were

seeing all of our friends get houses you know all this stuff and it was about really being thankful for what we had during this time and knowing that later we can you know make those strides to get the house the new car those sorts of things so yeah it really helped me so live like no one else and later you can live and give like no one else that's right yeah 10 years from now no one will remember the one bedroom apartment that's right i think we'll always remember you will no one else will no one else will you're the only ones that'll remember it i remember all those places we live but uh nobody else does yeah and even the kids don't know those places sure yeah and that can tip a piece is big and i feel like that's one thing with money it's not just the dollars

and the cents and the math, right? There's such a heart, emotional level, and you guys have done such an incredible job with that. Okay, so were there people that thought you were absolutely crazy? Because they're like, you're a pharmacist, dude. You guys are killing it. We definitely had some people that

were probably not directly to our face, maybe behind our back, I don't know. Most of our friends and especially our family were super helpful during this whole process. You know, we could not have done this without their support. So super thankful for them and their support. Absolutely. I think the craziest thing we got was, wait, you did what with your credit cards? Yeah.

So, yeah. What? You don't care about your credit score? What? You don't need a credit score? Don't you want a house someday and so definitely that was i think that was the biggest uh judgment we got for sure yeah of that and you felt though the pressure though of people going out and doing stuff yeah so whether it was vacations or car whatever it is but you guys

saying no and did and do you feel like what you guys went through together as a couple which you're still newly married right just two years but do you do you feel like what you guys went through together as a couple, which you're still newly married, right? Just two years. But do you feel that sense of bond now with him as his wife and you as her husband of like, man, we can do this. We kind of just did the impossible of what people would say is impossible. For sure. Yeah, there's like nothing we can't do. And like, obviously, the pandemic adds a whole nother piece, right? And so, I mean, we were already kind of locked in.

So that helped a little bit. You know, you're stuck in your house. What else are you going to do? But definitely, I feel like the bond has grown stronger. And it was definitely a testament to those first two years. Yes. But if we can get through that, we can get through anything. Amen.

Amen. Well done, you guys. We're proud of you. Thank you. Well done. Unbelievable. I mean, that is a huge, huge feat. Well, we have a copy of Baby Steps Millionaires for you guys, because that is that is a huge huge feat well we have a copy of baby steps millionaires

for you guys because that is the next leg of your journey which i'm so excited about because you guys are so young and i'm like oh the future for you is just it's incredible absolutely incredible and we'll give you a copy of total money makeover as well to pass on to tell all those people who could have been whispering behind your back they can do right. They can do it, too. Yes, absolutely. They can do it, too. All right. We have Ryan and Michaela from Knoxville, Tennessee, who paid off $193,000 in 32 months, making $107,000 to $170,000 a year. All right.

Count it down. Let's hear a big debt-free scream. Three, two, one. We're debt-free scream. Three, two, one. We're debt-free! Yeah! Woo! Ha-ha! Oh, man!

That is a mountain to climb. $193,000 in student loans. First order of business out of school. Boom. It's amazing. It's those decisions to me when there's callers like that. All the journeys are impressive, right? Anyone that decides to tackle this subject in their life and get out of debt is always impressive.

But when you have younger people, I don't know, maybe it's like a kindred spirit, a Knoxville sharing of our love. I don't know what it is, but I'm like, when I see younger people, and there's a level of maturity there to say, and you say it all the time, a definition of maturity is learning to delay pleasure. And just to say, okay, we're getting these checks, we're making this income, and we're choosing to stay in the one bedroom apartment. We're choosing to be uncomfortable. We're choosing to do this for such a short period of time. That sacrifice, right, is such a short period of time for such long-term gain.

And it's amazing. They make a couple hundred thousand dollars a year in about the next 20 minutes, and they got no payments in the world. Do whatever they want. That's a pretty cool place to be. I mean, you get to, like, keep your money and stuff. Have your income and use it. Your most powerful wealth-building tool is your income.

And when you get to keep it, you'll become wealthy. And the stress of money and marriage is now lowered, no payments, and they are on the same team. Absolutely incredible. Absolutely incredible. This is The Ramsey Show. Thank you. Well, building wealth seems like a hot topic right now. So whether, gosh, it's crypto or single stocks, zero down real estate, the metaverse. I mean, there's all this stuff happening and it feels like everyone has an opinion. And then you add inflation on top and then everyone's freaking out. And man, it's just, it's hard right now with your money to navigate and know what to do.

So that is why we decided to take our Building wealth live event on the road this year so vegas we're coming for you orlando you're you're next week after next for vegas i know it's coming up may 5th just a few minutes and then in the fall we're doing sacramento minneapolis and san antonio so there's uh there's gonna be a lot of travel coming up with a really really fun event so we So we're going to, again, tackle these quick get-rich-quick trends. And we're going to dive into investing in real estate and retirement, all of it, and give you the truth and the best way to build wealth. So Vegas, May 5th, like you said, the week after next. We'll be in Orlando May 19th. And then for the fall, Sacramento November 1st, Minneapolis November 10th,

and San Antonio November 15th. And tickets are just $25 or you can get a four pack for only $60. And bring your friends. It's going to be a fun night. Our events are so fun. We enjoy ourselves on stage as speakers. We have fun.

The audience has fun fun and you get to learn and hopefully change your family tree so go to ramsey solutions.com slash events to get your tickets before they're gone again ramsey solutions.com slash events to get your tickets and hopefully we will see you there yeah we'll have five of our ramsey personalities there rachel cruz george camel me uh Ken Coleman, and Dr. John Deloney will all be there. We'll all be signing books, and we'll all be doing a roundtable discussion as well as speaking and teaching. It's going to be a lot of fun. It is a fun event. It's a little bit of a different one. We did one in January, and you do a lot of the keynote at the

beginning, so Dave does a lot of the teaching. And then at the end, we sit around a table and have these discussions, because again, whether it's inflation, student loans, crypto, I mean there's just so many elements of money right now. Mental wellness, the great resignation, all of it. So much is going on. So we just sit and have a conversation and it's fun. So come check it out if you're in any of those cities. Again, we have Vegas and Orlando

this spring. RamseySolutions.com slash events. Blinds.com Blinds.com's 100% satisfaction guarantee means that if you mismeasure or pick the wrong color, they'll remake your blinds for free. You get free samples, free shipping, and with the new promo codes that are on every month, you'll save even more. Use promo code RAMSEY to get the best deal. Today's question comes from Ethan in Delaware. My wife and I are in baby step three.

We've agreed that we would have my mother-in-law come live with us for her in her older years, but rather than put her in a home. However, with a nudge from us, she has just barely started contributing $40 a month to a 401k. She's 55 years old and earns about $15 to $20 an hour. We're happy to help contribute to a mutual fund to help her now. However, she does not seem to feel the same urgency we do. How do we get her to see the importance of retirement planning? It's like leading a horse to water and trying to force it to drink, isn't it? I mean, it is difficult because in one sense, I don't know, I'd love your opinion on this, Dave, but, you know, I feel like generations ago,

the idea of having, I was actually reading this in Dr. John Zaloni's book today, actually, I was reading it about the past generation, you know, the older generation would move back in with the younger, not because of, I don't think the lack of financial support that they needed, but just of having a multi-generational home and that's how society was i mean hundreds of years ago right and so today we've obviously evolved and and it is so different so there is a an element of this beauty of having her come back with you guys um and live in the home i mean i think there's an element of that that's so wonderful but not because she can't financially support herself right so there's there's that weird balance of the, is it enabling?

Is it honoring, right? Like that's such a hard line for me sometimes. Yeah. I don't know how you get someone to see the importance of retirement planning. The only thing you can do is just start talking to her about things that you guys are doing. And it really, probably your wife's going to have a lot more influence with her mom than you will, unless you have an unusual relationship with your mother-in-law. Um, in my case, um, you know, you know, we've been married, I've been married almost 40 years.

So her dad's is apt to listen to me now as he would be to listen to her. So, uh, but early in your marriage that would probably be different. And so you don't necessarily earn the right by hanging around long enough to start telling her what to do. But, you know, I think the thing you could do is just say, hey, listen, I read this book and it changed everything for me. It would be really cool. Why don't you read it? Or I'll get you the audio book.

And maybe get her the audio book and the Total Money Makeover book and give it to her or something like that, just something to get her spurred along and get her concerned about and the other thing is she probably is living hand to mouth at 15 to 20 an hour because she's not on a budget she's got a tight budget with a lower income and so if you can get her on a budget and she could start to see that she if she was, she could put some money aside. Then maybe that hope would kick in because she may feel overwhelmed and not really know what to do next. And if you can kind of give her a foothold on the first step on the path, then maybe she can start to see the light a little bit. Yeah, I feel like that's true with money in general. We get the question a lot of, hey, how do I convince my brother-in-law or my friend? And you get this a lot. And really, whether it's logic by showing literal dollars on a sheet of paper and showing a plan that can kind of get them moving or bringing in that third party. And I feel like we end up being that third party for a lot of people of, hey, listen to this podcast or, you know, here's a great book. Or the third option, too, is just your own testimony, like your own experience of what you've done and how you have felt lighter.

And giving a get out of debt book away is like giving a weight loss book away. It kind of can be shaming. You've got to be real careful. And so you're like, hey, you're stupid. You need to read this. doesn't work okay so instead you go hey i read this and i'm giving it to everybody because it changed my life you know and it's like because i was so stupid in this area and you just own your stuff kind of yeah and then you just like i'm just you know and so if somebody gives me a nutrition book that way, it sits on the desk for a day longer than going straight in the trash, right?

Totally. But if they just give it to me and go, you're kind of looking fat, Ramsey, then that's probably not going to work for me. Not a great motivator for you. That's good. That's good. All right. We're going to go to the phones now. And Alex from Detroit is up next.

Hey, Alex, welcome to the show. Thanks for having me. Absolutely. How can we help? So I've got a side hustle, part-time business, moonlighting for the past few years. And just recently had an opportunity come about where someone may be interested in purchasing it. I'm just trying to figure out how to value the business. What do you do?

Very difficult. Very difficult. Because you're a one-man show, right? Yes. How much do you make on the side hustle? Revenue or net? Either one. 40 revenue and net 23 and a half okay so you have a part-time job that pays you 23 and a half and you own your job yeah we're doubling every year yeah okay no shame in it but that's really what's going on. Because if you don't show up, nothing is made.

Currently, yes. You're the CEO, the chief everything officer. What is it, Alex? What kind of side hustle is it? Manufacturing. Okay. What does that mean? We make cosmetics.

Okay. So what is it that has value in the business? What is it that's attracting this buyer? Okay. We've got 20 or so clients that purchase products from us. We're mostly wholesale. So having the access to those clients, but also the formulary know-how. If I owned a business and I had to pay you to do what you do, what would I have to pay you?

That's a great question in this current market. Part-time? Yeah, part-time, maybe 15. Okay, so then the difference in that is the actual net profit after I pay you, and that times five or times four is what the business is worth. So let's call it $10,000 net and say that the business is worth somewhere around $50,000 unless you have a recipe in those cosmetics that is more valuable than the actual cash flow so far. That's it.

Well, fun hosting with you. You too. You're a great co-host, Dave. I'm trying. This is The Ramsey Show. Hey, it's Rachel Cruz, co-host on The Ramsey Show. Hey, it's Rachel Cruz, co-host on The Ramsey Show. If you want to do your debt-free scream live on the show, visit ramsaysolutions.com slash debt-free scream.

We'd love for you to come to Nashville and tell Dave your story. That's ramsaysolutions.com slash debt-free scream.