The Ramsey Show - App - My Mom and I Disagree on How To Spend Her Stimulus (Hour 3)

Episode Date: March 18, 2021

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Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studio, this is The Ramsey Show, where America hangs out to have a conversation about your life and your money. I'm Christy Wright. I'm a Ramsey personality, bestselling author of the book Business Boutique, and my new devotional, Living True, 40 Days to Get Back to You and co-hosting with me today is Anthony O'Neill, who's also a Ramsey personality and bestselling author of Debt Free Degree. We both have shows.

Anthony has his show on podcast and YouTube, The Table with Anthony O'Neill, and mine is The Christy Wright Show. We would love to connect with you there and hear your stories and get to continue the conversation. We love helping people in personal development, in faith, in money, in business, and in life. We're taking your calls. You can give us a call at 888-825-5225. And we're going to go ahead and go to the phones. We've got a call from Kurt in Albany, New York. Hey, Kurt, how's it going? Good, how you guys doing? Good, what's your question for us?

Yeah, I'm 30 years old. I have around $30,000 saved. I put $10,000 of that aside as an emergency fund, and I think I'm on baby step four or going between four and five. I want to get a car for myself that might be an investment for $15,000. I want to get information about if that,

you think it's a good investment or I should invest it in some other way. I want to get information about if that you think is a good investment or I should invest it in some other way. I've got a question about your emergency fund. I think Anthony's probably going to ask that too. You're 30 years old and your emergency fund of three to six months of expenses is $10,000. Is that enough? Yes. Yes. I think it should be. Well, you live in New York?

Yes, Albany. You must live with your parents no i pay rent oh you pay rent do you have roommates no i live alone oh you live alone okay how much is your rent my rent i used to pay 1500 now i pay 900 oh okay all right so three months single person i can see that 10k is good right. All right. Yeah. So that means it'll leave you over with $20,000, right, to spend towards a car. And you said you could find a car for about $15,000. Yeah, I found one that I want, which is actually $15,000 is good because usually I go for $20,000. So I thought maybe it'd be a good investment, something I can enjoy because I like going to the track and racing and doing that stuff.

And the car isn't going to lose much more value because it's already a used car. Do you already have a vehicle? Yes. Okay. So are you trading this vehicle in or are you keeping it? I'm going to keep it. I have like a beater car I just get around in. No.

Yeah. So at your age, you don't need two cars? No. No, sir. Yeah, yeah. I would definitely, if you want to get the car, okay, I would trade in this car, get 5K for the car. You're only spending 10K cash. So that's what I recommend. I mean, I'm 36 years old, man.

I just bought a new car, and I had another one. I was thinking just like you. I'm going to keep this car, drive this every day as my beater, my go-to-work car, and then drive my fun car on the weekends. I was like, man, that's just unwise. Just sell the car. Get some money for it. Have it go towards the new car that you want. And so that way you can, you know, you don't need two insurance policies.

You don't need two gas bills. You don't need two maintenance things. So at your age, man, you have an option. You can keep the beater car and stack up some more money and go buy you something a little bit nicer down the road until this one, well, whenever this one dies off. Or since you're already in good position, you're out of debt, you got your three months set aside for emergencies, you got an extra 20K. If you want to go ahead and upgrade your vehicle now, go ahead and do it, bro. How much money do you make, Kurt?

I make, before taxes, I make about $50,000 a year. Okay. Yeah, and the other thing to remember, and I think this is good for different people listening right now, different baby steps or financial situations, also look at your percentage of income. You don't need two cars with that type of income. That's a fine income. You can continue to increase it in the future. But if someone was calling in and they're a millionaire and they want to buy another

car, yeah, okay, buy another car. It's a small percentage of the overall picture. So we just don't want you to be strained financially where a large percentage of your income is going to something that's unnecessary like two vehicles. You don't need two vehicles. You can have the new car, like Anthony said, but just sell the other one. And that percentage, Christy, is 50%. You don't want your cars to be worth more than 50 of your take-home pay bottom line okay and so i will

go ahead and trade that car in man and then just boom um drive nicer i mean just go ahead and trade in and just drive nicer man but you you've done great kurt yeah um i'm proud of you bro uh i just don't don't don't pay for two car insurance. Not right now. You don't need that expense over your head. Awesome. All right. We've got a call from Tim in Appleton, Wisconsin. Hey, Tim, how's it going?

Good afternoon. I'm doing well. How are you? Good. What's your question for us? My question is my wife and I are currently in baby step four, five, and six. We have two children, 10 and six. And the question specifically is about baby step five with my younger son.

He has, I'd say, moderate special needs. He's moderately autistic. And right now we see kind of two paths for him, one where he could, he may, where an education beyond high school is not in his future or where it could be. And I guess the question is, how do parents in other circumstances, what should we think of to try to plan for that? I'll jump in from the parenting perspective of what I would do for my kids. And then I'll have Ayo jump in from the financial savings perspective. I would say, Tim, what I'm always going to want as a parent, or anybody should want that.

I mean, I think anybody wants this. I just want options. Yeah. And so I would not make a decision about your child's future as young as he is that he will not want college. I would say, let's save up for college in an option that is accessible to use for something else in case he doesn't go to college. But gosh, you want to have the option because if he gets there,

and then how proud would you be? How excited will you be? You want to have the money to pay for it if that's what he wants to do. And if he doesn't, then you can redirect that money to something else he wants to do. But I just wouldn't write off that option this early in life. I always like lots of options, and money gives you options. I don't know. Ayo, you jump in there.

You wrote the book, Debt-Free Degree. You know about this. Oh, man, yeah. I'm excited. always like lots of options and money gives you options. I don't know. Ayo, you jump in there. You wrote the book debt-free degree, you know about this. I'm excited. And I love, I love your heart, Tim. I mean, I love how you're saying, Hey, I want, I want the best for my son. I'm hoping for the best for my son, but I also want to be wise, uh, with the resources that we have right now for your two older children. Are you, um, already investing into a five29 already for them? Yes, sir. With my oldest, we have two children. The oldest child, we do have a 529.

And we actually have 529s for both the older and younger child. Okay, cool. So here's the thing. I wouldn't open up a 529 for your younger one because here's why. You already have two open, and your to nines can be passed down to all of your kids so once you invest let's say that your second to oldest one goes off to college and you don't use all those funds let's say they get a scholarship or you have too much in there you can transfer that down to your son if your son goes to college if not then you can still use it to fund your your kids college so you have options like christy said which i love that she said that so i will just go ahead and just max out the two uh put as much as

you can the two 529s you have right now and then just continue your options you can also open up a maybe a mutual fund uh for uh your your third your third child so that way if he does go off a different route you can still sow into your son's future. But I wouldn't open up a 529. Yeah, it's a great question, Tim. And I think if you have this savings, you will just feel the peace of mind of knowing that whatever you want to do,

when that time comes, you can do it. And that's what money gives you. It gives you options and options give you power. Absolutely. This is The Ramsey Show. Have you ever wondered how to save more money or pay off debt faster? What about the right way to invest? Listen, I've been there, asking the same questions with no idea where to turn for answers. But here's the good news.

You don't have to keep searching for answers. Ramsey Plus will guide you every step of the way so you always know what to do with money next. Ramsey Plus is our step-by-step plan that shows you how to get consistent small wins with money and even some big ones so you can see exactly how you're making progress. Then we can help you turn all those wins into better habits that last. You can be confident you're doing the right thing with money. And that means no more payments, cash in the bank for emergencies and a plan for your future get started today with a free trial of ramsey plus at daveramsey.com

daveramsey.com that's daveramsey.com I'm Christy Wright. Sitting in with me is Anthony O'Neill. We're taking your calls about life, money, and business here today. And this has been fun. We've had a good variety of calls. We're going to go out to Mesa, Arizona with Chad. Hey, Chad, how's it going? Hi, doing well.

How are you guys? Good. How can Anthony and I help? Yeah, real quick. Thank you so much for taking the call. My question is whether I should continue to rent a home for my family or with the environment today, try to purchase a home. The reason this is a concern is I'm married to my wife, who is currently changing her status, so she's not working, and we just welcomed our son. He's about a month old now, and I also take care of my mother, who has dementia, and my niece, who we have custody of. Prices on houses are going up, and really for the size of house we're looking for, it's kind of difficult to afford. I have no debt whatsoever, and aside from a fully funded emergency fund, I have about $75,000 in cash and savings accounts.

Okay. What's the rush, man? Let me ask you that question. I'm sorry, what was the question? What's the rush? Are you just fearful that, you know, you may not be able to get into a home? Well, you have a lot of people that you're taking care of. What's your home situation right now as well? Okay, so our household income is about $85,000 a year. The rush, it's really, to give you context, we had already had a contract on a home, but it was a new bill that wasn't able to be finished due to not being in compliance with Arizona environmental quality. So essentially the contract on the house is going to be canceled because we won't build

the house. My concern is I keep on spending money on rent each month and, you know, not owning a home, which I feel is the next step. But at the same time, home prices are so expensive. I was kind of thinking either trying to purchase land and build a home on it or waiting for the prices to drop on the homes, but I just don't know that that's going to happen. So that's why I'm really just kind of reaching for help with this. Yeah, it's interesting. I'll jump in just from my vantage point. The good thing is you have options that can also be an overwhelming thing because you've got money.

You could buy a house right now. But to Anthony's point, you're not in a hurry. You don't want to overpay. And one of the things that you said that was a little bit of a red flag to me, Chad, is you sound like you are in a very stressful season of life. You just had a baby. So you have a newborn. You also have other family members you're taking care of so you're pulled in a lot of different directions if i'm you i don't want

to build a house right in the middle of that i don't want to be thinking about what kind of drawer pools i want in the middle of that now if if a house came on the market and it was a good it had the amount of rooms for your what you want and you could afford it. I don't think you totally pass on it. I don't think you're like, no, we're not going to buy a house now. But I don't think you're in a hurry to. It's almost kind of like if the right thing came on the market, you would consider it. But you're not going to rush and force it. You're not going to overpay.

But you're also not going to look at renting as, oh, I'm just throwing money away because you're buying yourself time and options in this season of life when you have a lot going on right now. That's my gut. Anthony, you talk about this a lot from especially the financial standpoint. What would you say? Now, you're getting good. You're talking real good right now, Chrissy. Chad, I'm going to wait to 2022. Here's why. You just had a newborn. Your focus should be focusing on a newborn. Your focus should be helping your wife get up in the middle of the night and get this baby taken care of. You all shouldn't be stressing about the newborn,

plus picking out the colors of this and the carpet for that and wood grain floors for this. No, focus on that. Now, once you all get new to this new life that you have, then you and your wife can proceed forward. I would definitely take this year to just relax. I might get it. You sound young like myself and like Christy. And so when we see like, man, I'm renting and I'm wasting money and I don't have a mortgage that I was there. I can't speak for Christy, but I was there like, man, I'm young.

I made good money. I should go buy a house. But you can buy a house at the wrong time and it can hurt your future, man, moving forward. A lot of people going out here and spending $20,000, $30,000 over asking price for a home right now, which is unwise. And so for me, the housing market will come down. It will. It's not going to stay up this high forever because if so, we all in trouble. I'm going to be real.

And so for what I'm telling you is sit still, continue stacking this money, enjoy your new life. And then here's what I will add. Like Chrissy said, if the only way I'm buying a house this year is if a house comes in a market and it is a crazy deal. It is exactly what me and my wife want. And there's no stress. It's already built. We can put our down payment on it and get into the house. That's the only way.

But I'm talking about it's below asking price is great. It's a great deal. But right now, man, enjoy your new family. Enjoy this season that God is out. I mean, you have a new boy. Enjoy that. Get some peace. Get some joy.

And then next year, go ahead and build a home for you and your amazing family. Yeah. And history shows if you look at the housing market over the course of forever, it goes up and it comes down. It goes up and it comes down. It goes up and it comes down. It will level out. There's a lot of weirdness right now because of COVID and people moving states. And then you've got the way the housing prices are, are reflective of people moving in that state.

For example, Nashville is one of the top cities in the country to move to. We have a lot of people moving here from California, which is jacking up the prices because people in California got some money to just pay cash on some houses. And so there's a lot of variables at play right now that will not be at play forever. And so you're in a great position, just like Anthony said, to just wait for the right thing. And the right thing for you right now might just be focusing on that baby and getting used to this new season of life. And then when you're ready, going ahead and looking at buying a house. All right, we've got a question from Gabrielle in Fairmont, Minnesota.

Hey, Gabrielle, how you doing? Hello, thank you for having me. My question simply is this. My mother, who just left a 30-year marriage, is now staying with me and I'm taking care of her. In the process, she's had family help her financially. She just received a stimulus check. Now she's saying, I'm going to pay back all my family members and so forth right now. What I suggested is, no mother, find ways to use that stimulus check and multiply it. Then pay back your family. If your family is not putting a burden on you

to repay this, then why are you doing it? She's placing the burden on herself when she doesn't have to. Am I correct in giving her this advice? What do you have in mind for her when you say multiply it? Meaning, as a Proverbs 31 woman, we take something out of nothing and make it out of something. My mother has many gifts, such as sewing. She has gifts of cooking. I'm saying, let's take that money and multiply it. Use gifts and then see if it can multiply. She, however, wants to keep her word to the people, but the people that she wants to pay back, they are not bothering her to pay it back at a certain time.

Anthony? All right. I'm going to jump in and say that one of the things I love about this question, Gabrielle, is I love your mother's heart. I would be way more concerned to hear a question from a mom that's not really interested in paying back family, that's not really interested in paying their debts. They're perfectly fine with owing family members. So I would encourage you to hear the goodness in her intention and in her heart. The other thing I would remind you of is she's a separate person

and you can't make her do anything. You can give her advice, but she's going to do what she wants to do. I would say that the great thing about this question and situation are the two options of her taking that money and in your words, multiplying it. Maybe she starts a business or does something with it to make more money with it. It's not bad advice. It's also not the only good advice. For her to pay those families' debts is also a good option. So we really have two good options here.

That's the way I see it, Anthony. We have two good options. It's not like a bad one and a good one. Now, I love helping women start side businesses and small businesses. I am with you. I love helping people make money doing what they love. That's what I do through Business Boutique, through the event and through my book. I would also say that starting a business is not for everyone. And so if she wants to put that stimulus money to family, that's an okay thing. It's her money and she can do what she wants to. I'm so glad this segment came to an end. It's at the end of the day, it's her money and her life and she can do what she

wants. But you can absolutely give her that advice if you want to. There's nothing wrong with that at all. But I would just encourage you to see the good in her intentions. It seems like to pay this family back as well. This is The Ramsey Show. I'm Christy Wright, co-hosting with Anthony O'Neill today. And we're here for a couple more segments. If you have a question about money, business, life, or just a decision you are facing, we would love to help. Give us a call, 888-825-5225. We have a few more minutes to answer your calls. And we're going to go out to New Orleans with Heather. Hey, Heather, how's it going? Hey, how y'all doing?

Thanks for having me. Sure. What's it going? Hey, how y'all doing? Thanks for having me. Sure. What's your question? Okay. So just in general, I'm a mom of three, a single mom of three, and I'm just, I live paycheck to paycheck. And I just got the stimulus, of course, the $5,600. And most of that went to just paying off my credit card. Cause that's literally after

I pay my bills, that's what I'm using to put food in my house. I don't get food stamps because they say, you know, of course you make too much for food stamps, but you're still struggling to eat. So you get like, you're in this catch, right? So I'm just looking like, I don't know if I should do a career. I don't, I only have a GED. I'm a great worker and I make 30, close to 37,000 a year, but raising three girls, you know, one of them that just got braces, right? And then it's just, I'm literally, I'm just tired of the check to check. And I don't know, just looking for some personal advice. Yeah, I hear you, Heather. And the fact that you have those three kids that you're responsible for,

I hear that in your voice, that responsibility, not just the money, just the responsibility and being a single mom. Like I hear that in your voice. I've got a few more questions for you just to get context around your situation that Anthony and I want to give you some hope because you need hope and there is hope. I want you to hear that. When the Lord does come through, like, I don't want to act like God because when I tell you, if you see what I make and then what I put out, it's literally like a miracle all the time. Yeah. But it gets to the point where it's like, God, when am I going to stop?

You know, like I do get it. I do get like he gets the glory. But it's like you get tired. You're tired of struggling. The check to check. You get tired of. And really, it's so stressful that I do block it out. And I just do what needs to be done in the moment.

But, you know, times like this, when you do get a big chunk of money and then it all goes out, which I'm thankful I get to pay off the Capital One and the ASI and the ASI loan because I have ASI credit card and the ASI loan. So I'm thankful I get to bring that back down, you know, to zero or little. But what's going to happen is, is you know next month's going to come and i still need to put food in the house and i still need to buy clothes and you still have pictures that come up and you know i'm saying school pictures and soccer teams and you know i'm saying all that does come with it yeah right yes yeah and i and i hear you. What are the ages of your kids? So I have a 13-year-old, a 10-year-old, and a 3-and-a-half-year-old.

Okay. All right, I'm going to go ahead. Go ahead. I was going to say I just started getting child care assistance for Rose, which is my 3-and-a-half-year-old. So that has been a burden lifted because I was paying $620 a month, and I just got childcare assistance in August.

So that has been a blessing. So it went from $620 to $375 a month, right, for her. And they actually feed her breakfast and lunch, which is huge because I was having to do breakfast and lunch at her other daycare. So Heather, let me ask you this. Let's start from the very beginning because I'm with Christy. I hear the passion in your voice.

I hear I'm tired. I hear what do I do? I hear I want to be a great role model for my kids. I hear I need help. I hear I'm grateful for all the financial opportunities and the blessings God has given me. I hear it in your voice. And so I want to say we hear you. Now, let's step aside and let's talk about some practical things that we can do to help you

the very first thing that i hear you saying that i hear you not saying that i hear you saying you see what i'm saying uh i can almost guarantee you that you do not budget that you do not spend no yeah so the when i do i get stressed out because it doesn't make. Heather, I hear you. Let's walk you through because we only have about three to four minutes. And I want to make sure that we give you some practical stuff because I hear you. I already know what you're thinking. I'm already flowing with you. I know how this I know how this goes down. I mean, I have family members just like you in my family. The very first thing is, Heather, is you cannot rack up more debt thinking

you're going to get out of debt. You need to stop swiping your credit cards. You need to stop taking out loans. If you want to change the situation, you have to stop borrowing more money. That's the very first thing. And the tool to do that is the budget. I want to call it, like right now, what I heard you say, Heather, is you have to use the credit card to put food on the table because you took the money you had and put it towards the credit card. Listen, a budget will solve that problem when you begin to look at how much money you have, where it's going to go.

You allocate for your four walls, and food is one of your four walls before those credit card payments. You make sure food is one of your four walls before those credit card payments, right? You make sure food is taken care of. Then we pay the credit card companies in order of priority and you make sure food is taken care of and you're still working on your debts and re, uh, continuing to swipe the card is not a part of that plan. Sorry,

go ahead. I want to jump in on how that's, that was good. That was good. And then also you gotta be, you gotta be okay with saying no and saying no to yourself and saying no to your kids okay uh pictures huh no i i thought the same thing i mean pictures no i'm sorry soccer no i got sorry i gotta jump in on this one too listen i i will tell you no listen heather listen listen heather my mom was a single mom. She never told me no.

Now, this is not a secret, me gossiping about her. She knows that she never told me no because there was something in her that wanted to compensate for the fact that she was doing this by herself during those years of my life when she was doing it by herself. your kids are not going to make it in life despite the struggle because you insulate them from, from any hard times and you give them everything they want, soccer, pick soccers and all this thing. They're going to make it because of the struggle. When you invite them into the struggle with you and say, Hey, we as a team are going to rally and we're going to make some short-term sacrifices to get out of survival mode for long term reward and you bring them into this team picture, that is going to shape their character more than soccer or pictures will.

So I just want to say you're not harming your kids by withholding some of these unnecessary things that are making you sink. Ayo, go ahead. Sorry, just want to jump in. I have seen that firsthand. Yeah, we're tag teaming here. This is good. I mean, because here's the truth, Heather.

And we're about to come up on a break. So we can't spend too much time here because I just want to give you some practical stuff. Stop borrowing money, number one. Number two, get on a plan. Get on a budget for your money. And the key thing here is when you do your budget, you need to list everything. And when you go back through the budget, I need you to identify where can you cut certain things out of.

Now, yes, $37,000 is not a lot of money, which I'm going to go number three. You need to connect with our career coach here, our career expert, Ken Coleman. He's going to show you how to get your shovel, which is your income up, okay? He's going to show you how to write the right resume because just because you have a GED doesn't mean you have to stay in a GED category. I know several people who have GEDs and they've, they've become very prestigious, very high end

earners, uh, individuals. So number one, get on the budget. That's number one is stop borrowing money. Number two is get on a clear budget. See where you can cut. All right. If you got Netflix and Disney Plus, cut out Netflix. Rock over to Disney Plus for your kids. All right. The number three, Monday through Friday, you need to be listening to Ken Coleman on Sirius XM or go to Ken Coleman show dot com.

And you need to call into his show maybe on Monday. He's out of town this week on vacation with his family. But on Monday, ask him, hey, what can I do? I'm tired of this. I need a better job. I need some more income. What can you do?

Do that. That's the first step. All right? Stay on the line. I'm going to have Madison give you a free year to Ramsey Plus, which is our proven plan to help you get out of debt and get

your money in order. But you got to do it. Okay, Heather, we're going to give you this Ramsey Plus. I want you to watch the video lessons. I want you to use the budget. I want you to really do it. When you have a plan and you put it on paper, you can see what you need to do. And I just want you to hear from us. You can do this. You will do this. And when you do, I want you to call us back and tell us your story. This is The Ramsey Show. I'm Christy Wright, joined by Anthony O'Neill. We're taking your calls about life, money, and business here for just one more segment. All right, we've got a call from Kristen in Salt Lake City, Utah.

Hey, Kristen, how's it going? Good. How are you guys? Good. What's your question for us? Thank you so much for taking my call. I have a lot of information, so I'm just going to jump right in. My husband and I were in the middle of baby step two. We had about $20,000 of debt. We're down to about $6,000. About six years ago, before we knew about you guys, we bought a house, of course, that we couldn't afford, that we now found out. My husband is finishing up his bachelor's degree, and then he will be applying for PA school or physician's assistant schooling. We decided to move in with my mom, and we've been renting from her to save money to pay off debt.

We've rented out our home, and that lease is coming up the end of July this year. So we've kind of thought about selling our home to be able to cash flow his PA schooling. Because PA school, we're hoping he gets here in-state so it's, you know, cheaper tuition. But it can go anywhere from $80,000 to $200,000 just for PA school. Plus, he's not allowed to work during that 28 months of the program. They don't allow him to. So we're thinking of selling our home right now. We have about $186,000 left on it. And low right now that we've talked with our realtor, low what it could go for is about $340,000. High is about $370,000. So we'd be able to get a good profit. We could be able to cash flow his schooling and be able to even have some monthly, you know, kind of income coming in during those two years

to be able to live off of. So my questions are is one, is this a good idea? Are we heading in the right direction? Two, about property gains tax, I don't think we qualify for that, but I just want to be prepared in case we would owe that. And then three, since that is a large sum of money, we've never had that much money. So where's the best place to keep that? Because we'll also need to be able to have access to it, right? When like tuition's due, you know, monthly payments, things like that. How long have you been in the house, Kristen? Six years. Yeah. So you don't have any capital gains tax on the...

No, they're renting it out. They're living with their parents. Okay, okay, okay. Yeah, so it would be for... Yeah, we've had the house six... Well, we've had it for six years, and we've only rented it out this last... Like, this July will be a year that the renters...

Okay, so you lived in it for more than two years then? Yes. Yeah, so you won't have capital gains tax then? Because you lived in it... Okay, perfect. That's what I thought. Yeah, for more than two years. Okay. Okay, so you won't have capital gains taxing because you lived in it for more than two years. Okay, perfect.

So you're looking at about $200,000 and equity in your home. Okay, cool. Let's say you cash flow this experience. What is your income? What is your family income now? Our family income now is about $35,000 right now. A year? Three little kids. Yes. Okay. And then my husband won't be able to go to like work at all during those two years. Okay, cool. And then once he has this, once he finished school, what will his income go up to? Yeah, the average for starting out PAs if we stay here in Utah is about $8,000 a month.

$80,000. So we're looking at about a $45,000 increase in pay. That can potentially go up to about $120,000, $125,000 once he's in his sweet spot in here for about? Yeah. I don't have a yes or a answer for this i think it depends on what you and your family want to do the other thing to consider what i hear in your voice and maybe i'm maybe i'm misunderstanding this but one of the things i hear in your voice kristin is it sounds like we're gonna sell this house and we're gonna have all this money you're not gonna have

you live with your mom yeah with three kids that that can't be a long-term plan not for you not for her not for the kids not for anybody and so i just don't want to look at the sale of this house if we have so much money what are we going to do with all this money because you really don't because you don't have a place to live right now so my my a1 priority would be what is your housing plan if you're going to sell the home that you own that you're currently renting out, what is your plan to move out from your mom? Yeah, our plan for now,

what we talked about is if he goes in, we've worked out a plan that we would live with my mom while he finishes school. And how long is that? It's 28 months. That's two and a half years. Yeah, we have her full basement because she lives alone Plus, it's 28 months. That's two and a half years. Yeah, we have her full basement because she lives alone and she's single.

Her health isn't the greatest, so we try to help her out as well. Okay. So it kind of works both ways. It helps out. That makes sense. And obviously, it's not ideal, but I guess what we just saw with that as well, if we do that, if we can get done with like school, because if not, we could have like a couple, like a hundred thousand dollars or more in debt. And you know what I mean? Oh, we're not doing that. To go to PA school.

No. So that's why I don't want to do that. So if we sell the house and we do have that lump sum of money, we can use that to cash flow schooling. We can use it for, you know, like kind of like our monthly expenses, why my husband's not allowed to work during that time. So that was just kind of our idea with that. Yeah. So here's the short answer that Anthony and I are helping you with is

it comes down to priorities. If your priority is this school, and as a family you're saying this is our number one priority, we're willing to sacrifice living on our own. We're willing to sacrifice the amount of equity we've built up in this home that we've been in for six years or own for six years. We're willing to sacrifice all this because the number one priority for our family at this stage of life is PA school. Then it's your money. You can do what you want to. Just know if six months down the road, you're like, man, this basement's feeling real small.

This is really hard. I wish we had our own place. That was the decision you made to prioritize school over having your own house or even renting your own place that's a little bit more expensive for your family of five. I really want you to think it through before you do it. It's not, you can do it. It's your money. That's rough. That's rough.

Two and a half years, basement, family of five. That's the only thing that I'm just a little fearful of. Well, and it's hard. The thing that I think people need to keep in mind is we're always going to have our personal values as a filter. And for me, and I try to always remind people of this, like, well, this is my personal opinion, but I value independence so much that there is almost nothing that could get me to go live with my mom. Right. Because I want my own independence. And so I would do school slower or in a different time frame or figure out how to go live with my mom. Right. Because I want my own independence.

And so I would do school slower or in a different time frame or figure out how to save up ahead of time. I would do something else to avoid that if that was the requirement. But everyone's not like that. And if it's a great situation and you make a good point that you're helping her with her health,

and that could be a good fit for you in this season of life. If it's what the family wants to do, then yes, you can do it. I just really want you to think through it. But it's a great question. I think it's awesome that you're able to help your mom in the process. All right, let's go to Paul in Dayton, Ohio.

Hey, Paul, how's it going? Hi, thank you for taking my call. Yeah, what's your question? A little background before my question real quick. I'm 40 years old. Household income is $50,000. I'm an electrician by trade. And wanting to start my own business.

I was hoping to do that last year. One of the things that I need to do is obtain a state license. I love my job, but one of the things we've got going on this year is we've got a new baby coming. We've got a two-year-old already. And I cannot keep up the full-time job, my day job, do side work, which I'm pretty busy in, study for a five-hour exam, and have responsibilities of new baby. It's too much going on. So one thing I thought about is when the baby comes, quitting my full-time job

and doing side work and prep rate and also study for that test. What do you think about that? Or should I just tough it out and take longer studying for the test, take the test, and then quit the day job? Yeah, it comes down to what we were just saying. You've just got to prioritize. You've got to put in order of what you want to do. I know that it's a lot, but I will tell you when you're starting,

when you're starting a side business on the side, it feels like a lot. It feels like you're working two full-time jobs. Now, if this isn't the right season to do that because you've got a new baby, then that is totally fine. You adjust to being a new dad. That's so exciting.

And then say, okay, in three, six months and the baby sleeping a little bit more, I'm a little more rested. I can think and study. Then you're willing to take on that workload. Great question.

I want to give you guys the scripture of the day, Galatians 6, 9, let us not be weary in doing good for at the proper time we'll reap a harvest if we would do not give up. And then I think that the good and the great are only separated by the willingness to sacrifice. Kareem Abdul-Jabbar. That's a theme for today. The willingness to sacrifice in the short term for long term gain. This has been fun, Anthony. Thanks for hosting with me.

This is a good day. Christy, you killed it, man. This is awesome. I want to thank our producer, James Child, associate producer, Kelly Daniel, and you, America, for hanging out with me and Anthony. This is The 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.