The Ramsey Show - App - My Parents Are Forcing Me To Make Car Payments (Hour 2)

Episode Date: December 8, 2021

Insurance, Career, Home Buying, Home Selling, Investing, Retirement, Debt, Budgeting As heard on this episode: Sign Up for a FREE trial of Ramsey+ TODAY: https://bit.ly/3rZTUAx Tools to get you started:  Debt Calculator: https://bit.ly/2Q64HME Insurance Coverage Checkup: https://bit.ly/3sXwUn5 Complete Guide to Budgeting: https://bit.ly/3utmVXi Check out more Ramsey Network podcasts: https://bit.ly/3fHhbVE

Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studios, it's the Ramsey Show, where dad 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, Ken Coleman, Ramsey Personality, is my co-host today. As we talk about your careers, because that's where your money comes from, that we talk about your money, and we talk about your jobs, and we talk about your money that comes from those jobs and what to do with it. So life and money right here on the radio.

Open phones at 888-825-5225. Darren is in Kansas City. Hi, Darren. How are you? I'm doing great, guys. I really appreciate you taking my call today. Our pleasure. How can we help?

Well, I wanted to get your opinion on the possibility of me selling a universal variable life policy that I have. I've seen the commercials on TV about that sort of thing, and I kind of checked around with some of my friends or relatives, and no one that I know of has ever done it or know anybody that's done it, and I just wanted to see what your opinion on it would be. So you're seeing one of the commercials where you can sell the death benefit that pays them in the event you die. Correct, and I've been talking to my financial advisor about it, Commercials where you can sell the death benefit that pays them in the event you die. Correct.

And I've been talking to my financial advisor about it, and my wife and I have been thinking about cashing in the policy anyway just because the market has kind of bounced back at this point and the cash value is better than it's ever been before, but I'm not sure the market's going to stay that way forever. And I talked to my financial advisor about the possibility of just cashing it out, and he brought the possibility of bidding it out to other folks that would buy the policy. Oh, so your financial advisor is an insurance agent.

Correct. He's actually a broker. No, he's actually an insurance agent he's actually an insurance agent because a real financial advisor would have told you to cash that thing out yeah period well i guess i think he probably gets some sort of a commission off of it i'm pretty sure yeah i'm sure he's got somebody that he's going to shop it to, and he's going to get his cut and all that. Yeah. But he sells life insurance.

That's what he does. Well, I don't know that he actually does that or not. I've never purchased life insurance from him other than I've got a brokerage and an IRA through him also. He's not the original fellow that I got the policy from. He unfortunately passed away, and I was kind of turned over to this fellow a few years back. Okay, so here's the thing, okay? Yeah.

Some of the worst investment plans in the world are any kind of cash value life insurance. So maintaining it for any reason is not something I'm going to recommend. If I woke up in your shoes, I would simply cash it in. You wouldn't shop it out? Nope. I wouldn't keep it open. I would be done with it. The expenses are too high, the returns are too low, and the insurance gets progressively more expensive as you age inside that thing, and it eats up the investment eventually anyway. And so, no, I'm getting out, and I'm getting out while the getting is good. If you need life insurance, which apparently you don't if you're getting ready to sell the beneficial interest off anyway,

or the beneficiary's position off anyway, then if you don't need life insurance, you don't need life insurance. If you do need life insurance, you're going to be much better off to buy for about a nickel on the dollar term life insurance. And so I don't teach people, and I never have in 30 years of doing this, to own or keep cash value insurance unless they're sick and need insurance and can't get any more, but they already got screwed when they bought this stuff, so they have to keep it because they're uninsurable. I would cash it out if I were in your shoes. Julian is in Houston. Hi, Julian.

How are you? I'm doing well. How are you, Dave? Better than I deserve. What's up? Thanks for taking my call. So, I've been in business for about nine years now. And about three years ago, my father purchased in on half of the company. And it's grown to the point where I'm now working

out of state. And he's running things over in the home of California. And I just recently had someone offer me a million dollars well 1.1 million for my half of the business and they wanted to ask me if I would continue to run it out of state but then again I wouldn't be making the same money that I'm making now I'm'm currently making $130,000 a year, but I get many bonuses, so it's right around $160,000 to $170,000. What was the net profit on the business last year? Right around, I think, $300,000, something like that. You don't know?

Well, not off the top of my head. I'd have to double-check the paperwork. I believe it is. Okay. All right. So your half is not worth a million dollars. Something's wrong with this equation. No, it's not.

When we last ran the numbers, they said my business is worth, uh, 785,000, uh, if they were to purchase it straight out. But they know that there's a lot of potential and what we've been doing and how we've been growing every year. And they're trying to get in on it. So he offered to, to buy me out and have me run it. Three times what it's worth. Yes. That doesn't spook you. No. It should. That's asinine. Not so much.

We deal with a lot of cash as well, and we have some contracts that, you know, make sure that we're going to get paid a certain amount every year. Doesn't matter. Businesses worth $750,000 are willing to pay $2 million for it, or the equivalent thereof. Yeah. The equivalent thereof.

That should scare you. Yeah. And I don't think you want to work for them anyway. It doesn't sound like you. That's a bad idea, but you don't want to work for them at less money, do you? Not exactly, but the idea of having that chunk of money. That'll wear off. It's pretty enticing.

I've never made that much, you know, had that much in my account. What do you do? It's a junk removal company. How old are you? 29. And why can they not get somebody else to remove the junk? What do you mean? Well, why do they need you?

Well, I don't do it personally. My employees do it. Yeah? So why can you not get a manager of people who remove junk and not need you well they do but they know that i'm kind of the face of the company and that i know everyone and i have the contacts which is why they wanted to keep me on because i have a a good relationship with the police department that uses us quite a bit and with the city uh the government that uses us and they felt it'd be

best if i just continue to run it but they continue to own it who is this what is your relationship to these people uh he owns a couple other businesses in town and i met him through uh the gym that he owns in town i I'm sorry. When something doesn't feel right, it's usually because it's not right. And I don't know what's wrong here. But something's wrong here. I can smell it in the air, and I don't know

what it is. But there's something wrong. You don't pay three times what a business is worth to buy half of it and not have controlling interest in it while the dad runs the other half. Doesn't make sense, man. Doesn't make sense. There's something wrong. In an uncertain world, being a good steward of your money is more important than ever. While some circumstances can't be controlled, there are items within your budget you can take charge of, such as your health care costs. For nearly 40 years, Christian Health Care

Ministries, or CHM, has provided a budget-friendly means of sharing for medical bills when our members need it. Learn more by visiting chministries.org slash budget. That's chministries.org slash budget. Christian Health Care Ministries is a Ramsey Trusted Provider. Well, most people know I'm the guy who is so dumb that I had to become a millionaire twice. Because I didn't keep it the first time. I lost everything. And after losing everything, I set out to learn God's ways of handling money. And that's when we created the Ramsey Baby Steps. By following these steps, of course, I became a millionaire many times over again.

This time I did it the right way and i spent the next three decades the last three decades guiding millions of people through this same plan and today the evidence is undeniable if you follow the baby steps you will become a millionaire and get to live and give like no one else. We cover all of this in a brand new book called Baby Steps Millionaires. First book I have done in eight years and it's available for pre-order right now. You'll learn how ordinary people built extraordinary wealth, how you can too. The book comes out January the 11th but if you pre-order it we will give you over $150 worth of bonus items, including the Baby Steps Millionaires audiobook and e-book, the Legacy Journey audiobook and e-book. Now, Baby Steps Millionaires livestream, the Ramsey Smart Tax for your federal income tax

filing free this year, Ramsey Plus 30-day free trial, and a bunch of other goodies. Check it all out at RamseySolutions.com. Pre-order Baby Steps Millionaires for $20, and you get all of that. Tens of thousands of you have already pre-ordered the book. Thank you for that. RamseySolutions.com to get Baby Steps Millionaires, the brand-new book. Very fun times. Joe's with us in Lansing, Michigan.

Hey, Joe, how are you? I'm awesome. How are you doing today, Dave? Just the same. Better than I deserve. How can I help? My wife and I are looking at moving up in-house. Our current house is paid for.

We'd be paying cash for moving up. And I'm trying to figure out how big of a move i guess at what point does it become stupid okay so what's the current house worth about 250 and what uh what is the uh house you're talking about moving into that's questionable or stupid, price-wise? Maybe between $500,000 and $700,000. And you've got that much cash. How much total cash do you have? So we have a net worth of about $800,000.

$250,000 of it in our house, about $100,000 between a little rental and our checking account, and then about $250, 250 in a brokerage and the rest in retire so if it were 500 roughly we could move up you know sell our house and do it oh you're selling the house okay all right so your total you would have a net worth of around 800 and over half of it would be in your personal residence uh yeah that's where we'd be if we moved up yeah and and your household income is what maybe 75 percent yeah depending on year 180 to 230 and how old are you guys we're in our mid-30s no i don't think that's crazy because i don't think your net worth is your your house is going

to be 50 to 60 percent of your net worth for very long because house will go up in value from this point forward but you're going to be aggressively adding to investments and so your investments are going to be at a million pretty quick i mean i'd agree with that five to seven years you should have a million dollars plus your house right at which point you'd be about a third the average person that we found in the millionaire study when we studied 10 000 millionaires i'll hear normal we found a just thousands and thousands of them that had a 1..5 million net worth and $500 in a house and a million in their retirement account. But the average was 49 years old, too.

Okay, so that's kind of what I'm gauging this off of. You're young. You have a big income. You're going to be more than that by the time you're 49. And so this is not out of line. Now, if you told me you made $60,000 a year and you were 65, I'd be a little worried about this because you'd be kind of stuck there with your house being more than half your net worth. And that's a lot to have tied up in your net worth because your house does not create an income at retirement. And so it just prevents you from having house payments, all it does. And so, yeah, in your case, you're young. You've got a lot of up ramp, a lot of on ramp to go, and you're going to be fine.

I would do that. See, I did that. Yeah, that's very good. I think it's really smart. Because of the age factor and the house itself. I mean, it's going to end up being a really good ratio. Well, with $180,000 income at 30 years old, he ought to be able to, and the house is not going to, he's not spending more on the house. It's not changing that.

Evelyn's in Albuquerque, New Mexico. Hi, Evelyn. Welcome to the Ramsey Show. Hi, Mr. Ramsey. How are you? Better than I deserve. What's up? So my company just sent out a message yesterday that their 401Ks normally match it up to 6%. And for the year of 2022, they're still going to match it.

However, the caveat is that they're going to do it in a lump sum in 2023 and then if i leave my job during 2022 i get none of the 401k match so first off i was wondering if that's even like a normal thing at all or if um this is something new and how to move forward in terms of that it's weird meaning that it's not a normal thing companies do um have you guys had a lot of turnover um yes okay well they've they've had a great resignation and they're sick of giving people money that are walking out the door That's what they're doing. That's exactly right. This is a retention move. Golden handcuffs move. That's why they're, I understand why they're doing it.

I get why they're doing it. And there's nothing immoral or, it is unusual. It's not a typical way you run a 401k. I kind of like it a little bit, though, if they've had a ton of turnover. Because I understand, as the owner, I don't want to give a bunch of people money. They're walking out the door. The purpose of giving people money in their 401K is to keep them around. It's a benefit, you know?

Right. So I think the largest turnover is just from COVID, because there really wasn't that much turnover until COVID hit. Yeah, I know. But they've had this great resignation stuff following COVID. People got in freak- freak out mode or they suddenly realize they're going to die so they go have to go live their best life or whatever and and they're you know they're they're hitting the door man like crazy and we're not having much of that at ramsey but we are sure seeing all the numbers especially ken coleman in his world so um do

you like your job is there anything else wrong over there? There are a couple of concerns. Do you plan to leave next year? Possibly. Oh. There's why it comes up then. not put in the 6% into the 401k and just move it over instead into like a Roth IRA instead of expecting and hoping for their match. Well, there's no downside. You don't get a match on your Roth IRA. If you put it in a Roth 401k, you don't get a match, but you might get a match if you stay. Right. There's no downside to doing it. It doesn't cost you anything that's weird yeah there's a vibe going on inside

that culture isn't there yeah and i understand i with you i completely well i mean the firings will continue till the morale improves that's what this is right that's exactly right so it's like on one hand i get why they're doing it but it's not going to help their problem it's not no no well they're just trying to keep from feeling taken advantage of. Yes. And leadership. I mean, I get the idea, but it's like it's like, I mean, we have turnover here. We don't have a lot. Nothing like that.

But the point is, when you hire somebody, that's the that's kind of the risk of doing business. If you want to invest in people and they're going to leave you. And so that's just part of the thing. I think if if they keep doing this it's going to end up hampering the leadership um i get why they're doing it but i don't think it's a great move no it's not it's because it sends the wrong signal right yeah it's you you just seldom mess up loving people well you know it's true i think that's well said. Sometimes you do. Sometimes you get misunderstood and lied about and all that.

I don't know anybody like that. But you seldom mess up living. When you're 78, 89, laying on your deathbed, you don't regret going, I did the right thing. So, yeah, I'm with you. I don't think the company ought to do that. But it really doesn't affect whether you put money into it or not because you're not going to get any match if you put it somewhere else. And if you don't stay, obviously, you won't get any match.

But if you do stay, you might get the match. So I'd probably put it in there. Ken Coleman, Ramsey personality, number one best-selling author. Lately, best-selling author of the the book From Paycheck to Purpose. You know, the preposition is a little different. From Paycheck to Purpose, and you try to remember. I always say Paycheck to Purpose, but it is From Paycheck to Purpose. I have to get that straight in my head. I own the book.

I should probably, since it's my publishing company, I should probably get the dadgum title. It's like forgetting your kid's birthday. All right. publishing company i should probably get the dead gum title it's like forgetting your kid's birthday all right up next is going to be chris and amanda they're in sherwood oregon says on my screen you guys are debt free congrats thanks dave thanks dave way to go how much did you pay off we paid off 121 607 dollars in 29 months way to. And your range of income during that 29 months? We started at about $126,000. Current income, $184,000. Whoa, nice jump. What do you guys do for a living?

I work in tech, and she works in corporate retail. Cool, very cool. What kind of debt was the $122,000? A little bit of everything. Two car loans, credit cards, student loans, personal loans, store credit cards. Oh, my gosh. Y'all were normal. Yeah.

You got it. Yep. That's horrible. How long have you been married? Oh, geez. Since 2007. Yep. Okay. oh geez since 2007 yep okay so 14 years of marriage but two and a half years ago things changed and you decided to go crazy for 29 months and pay off 122 thousand dollars what happened how did you get connected to us and why did you start this journey? You know, actually, Dave, I found Rachel on a podcast

and everything she said just sort of clicked. And she talked about how just feeling out of control. And I came home and said, this is something we need to try. So we got FPU, got the Financial Peace University and started the journey and knew that we didn't want to feel like that anymore and didn't want to feel out of control. And we knew we made money, but we didn't know where it went. Yeah. And that was the big unlock for us. It's like having a financial hangover yeah yeah there's all there's all this regret you know and your head hurts you know it's like where did all go so uh chris amanda says she's been listening to this podcast and she found this new plan what did you say well i guess at first i was a little skeptical but you know amanda tells me to do something i usually do it so yeah there we go

happy life. It was no turning back. Once you start seeing those debts come off, it's gung-ho all the way. It is addicting, isn't it? Oh, absolutely. We definitely got very addicted to opening up the EveryDollar app and checking. I mean, there was never a dollar or a cent that we didn't have a conversation about to the point where like something came out like on accident. And I was

like, oh my goodness, did you see that? That wasn't supposed to happen. We were so in tune with what the jobs that our money was doing for us. That's good. That's good. That's why you got there so fast. Well done. Very well done. Yeah, I want to know, because you guys talked about catching that pretty quickly and going, okay, this was fun. Take us in the journey of the 29 months. How early into that journey did you all feel like, okay, now we've gotten past the discipline and we've figured it out, and now we're experiencing tremendous momentum. How early did that take place? I would say about three months.

Yeah. Three months in. I think that that's kind of those bumps that you get through where maybe that first month of estimating what you need for your gas, we were a little off. Or we forgot about a birthday or we forgot about something, you know, that we needed put as a line item in the budget. And then after we sort of honed in on how we could kind of win, it was really easy to just start seeing those debts come down and that snowball just getting bigger and bigger and just rolling down the hill. Yeah, once you get those first few credit cards off and those payments go away, it's

hard to look back after that point. Yeah. Now that you're free, how's it feel? It's amazing. It's so amazing. I mean, I think, you know, I've had I had this moment where I realized like what the word peace meant in, you know, Financial Peace University. And for me, it was, you know, we had we had an emergency in the family happened. You know, my mom got sick and we needed to kind of react and I needed to fly back home to Chicago where we're from. And the amazing thing was we didn't have to think about what credit card we needed to put a flight on. We didn't need to think about how I needed to get there and how we needed a fly family out to Oregon to come and help us. That was the piece. And we were able to focus on her and not the crisis and the money that normally would come with an emergency. And we didn't even

need at that point to dip into our emergency fund. It was no big deal. And that's, I think, what helped us know that we were so on the right path. Amen. Well done. Way to go, heroes. Very, very good job. All right, so what do you tell people the key, the thing you've got to do,

the two things you've got to do, the three things you've got to do if you want to get out of debt is? Budget. For me, it's budget all the way. Budget and talk. I think that was the big thing that I have said to people that we've shared the weird with and given total money makeover and passed the book along and pass the budget tool along is that this is not, it's not just about money. It's about your marriage. And it has made our marriage so much stronger. And we, there's not a moment that we don't have that conversation and we don't talk about

it. So those are the keys to winning. Yeah, that's very good. Very good. Well done, y'all. Well done. Good stuff. Yeah, that's very good. Very good. Well done, y'all. Well done. Good stuff.

Woo-hoo. Well, we've got a copy of the Baby Steps Millionaires book, which comes out January the 11th. But I know a guy, we're going to send you an early release copy. Amazing. Because that's the next chapter in your story to go on and become Baby Steps Millionaires. Now that you're out of debt, you're on your way to do that. That's the purpose, to live and give like no one else and uh you'll be in great shape to do that also going to send you a copy of the total money makeover which you can uh give away to someone and help them learn the stuff you've learned and get on this path amazing thank you way to go you guys chris and amanda sherwood oregon 122 000 paid off in 29 months making 126 to 184

count it down let's hear a debt-free scream one two three That is how it is done. That's how it's done. So if you want to do something you've never done, if you want to go to a place you've never been, you're going to have to do something you've never done. You can't keep doing the same thing over and over again and expect a different result that's the definition of insanity and so you need a proven clear path and that's what the baby steps are in business and that's what the steps that you lay out in from paycheck to purpose are on getting a new job that's right it's a clear

proven path the first step is get clear that's right in your paycheck to purpose system and uh one of the things we've discovered here at ramsey is that the best probability of you having a life transforming event happen is to give you a clear path to get there yeah do this then do this then do this and you'll get there yeah you know i was i was listening to amanda and amanda I think she preached and she didn't realize it. She talked about never really understanding what peace meant. You know, we say financial peace, and I know you choose words very intentionally. And when she said that, I thought, you know, peace means a lot of different things, specifically within people's journeys.

But, you know, I'm a word nerd. You know that i just i pulled up the definition and it says freedom from disturbance tranquility and i thought tranquility that's the one yeah i really love that a calm no matter what the disturbance is family member dies we don't have any disturbance so little peace in this society today. There's a premium on it. Very few peaceful people. Very few peaceful situations.

Very few buildings that you walk in that you get a sense of peace. Everything's so frenetic and so angry and so divided. And everybody's pissed off about something. Wow. This is The Ramsey personality is my co-host today. Number one best-selling author as we talk to you about careers and money. Because that's where money comes from is careers. And so how you handle your money is tied to the money you make, how much money you make, how well you do.

Open phones at 888-825-5225. Tim is in Charlotte, North Carolina. Hi, Tim. How are you? Doing all right. How are you doing? Better than I deserve. How can we help, sir?

Doing all right. So basically kind of my little situation here. I'm 19, currently cash flowing my way through school. The only debt that I currently have is in a car payment for 17 grand. And I love everything about the car, don't get me wrong, but I love everything about it except for the price. And I really want to, like, basically me and my mom are co-signed under the same loan. I really want to trade it in and basically get, like, a used car, something that I can do for work and school.

But I just, it's so, the way my parents are, they don't want me to trade in the car. They'd rather have me have a new car and pay off the debt. Like, they want me to pay off the debt. But, I mean, I really want to sell it. So basically, my question is, how do I get them on the same page? So I guess I could get it gone out of my life. Wow.

Whose name is on the car? It's both my mom and me. On the title or on the loan? On the loan. Whose name's on the title? It is my mom's name under the title. So your mom owns the car? Yeah, yeah, practically, yep. No, she does.

Legally, she owns the car. The car's titled to her. Okay, and you own $19,000 on it? I own $17,000 on it. $17,000. What's it worth? Kelly Blue Book, well, I went to Kelly Blue Book last night, and they said it was at $25,000 through a dealership.

So private, I could probably get like $27,000, $28,000 for it. And that would give you the cash to buy a car, assuming your mom let you have the cash from the sale of her car basically yes yeah okay you live at home and i mean yeah i live at home um you know and this is something that i use you know every day for commute um like i mean i i drive um like 30 minutes each way you you know, to work and back and then, you know, schools and other, um, 15 minutes out of my way. And yeah, I, I don't, I mean, I, I, I put quite a bit of miles on my car.

How many, um, what do you make a year or what are you making? What kind of income are you making? Um, right now I'm a, I guess I print this welder, so I don't make too much. I only make $15 an hour right now, so whatever that adds up to. And what are you going to school for? I'm going to school for welding. When will you graduate? I'll be graduating summer of next year with my certificate.

Do you have any money saved that's in your account? Yeah, I mean, I have $1,000, like basically $1,000 saved up because I've been kind of chunking away at the debt. Who's paying for school? I'm paying for school currently. That's very interesting. Well, the first place we start is with persuasion and with respect. Mom and Dad, thank you.

You've been a huge blessing to me. What I need you guys to understand is that this car is stressing me out. It is not a blessing. I know you want me to have a nice car, and I understand that. I cannot stand this debt anymore. I'm getting anxiety from this debt. I'm freaking out because of this debt. I've got to get this debt off of me.

You've got to sell this car, Mom. Yeah. And I would just add to that, car, Mom. Yeah. And I would just add to that, I think that's great, I would just add a little bit of vision to the persuasion. I'd show her all the different kind of quality cars you can get right now for $10,000, assuming you sell it for $27,000, $10,000, $17,000. Show her some other nice, dependable cars. Yeah, we can get a nice car for $10,000.

I won't have any payments and then when i finish school i'll be able to walk out of here and get my welding job and get out on my own with no car payments and this is scaring me to death i i cannot sleep i've got anxiety this is driving me nuts mom and dad i need you to let me loose. Set your people free. Yes. Yeah, and my plan originally was to graduate debt-free. My goal is to have $50,000 cash by the time I'm 24. Nice.

So when I move out, I have a good down payment. Well, you're going to move out long before then. You're going to move out long before then. You're going to move out long before then. Because you're going to have your full-time job after you graduate, and you don't need to live at home anymore. I mean, you'll be fine. You'll be making a lot of money as a welder. You won't be an apprentice anymore, and you won't have any car payments

because you're going to talk them into this. The second thing you can do, but it starts to get nasty, is, Mom, i'm not paying the payments anymore on your car the car is in your name it's your problem i'm not going to pay the payments anymore yeah i ask you nicely to sell it i told you it's stressing me out and it's the net the car's in your name so you can do whatever you want to do with your car, Mom. At which point, you're going to have to figure out how to get a car. And you may have to figure out a place to live because they may put you out because, you know, you're under their roof.

But that, you know, or you may have to just wait until summer to get rid of the car. When you move out, that will be the time to get rid of the car, and then you can play that hand. Mom, I asked you to get rid of it. Now I you can play that hand mom i ask you to get rid of it now i'm just telling you here's the keys to your car and good luck with that car it's in your name and um and she'll sell the car and she'll be angry at her ungrateful son but um that that's after you said please please, please, please sell it. I'm stressed out. I can't stand this debt. And she couldn't hear you because she's a bit controlling at that point.

And so I don't know. I hope it doesn't go that direction. I hope there's a whole lot of other ways. I don't think it will, Dave. I think that was great advice. And I think it's both and. I like your first tack, and I like the second one. He presents them both at the same time.

So, Mom, we either sell this because of all the things you described, and he also can say, look, here's what I can buy. It's a very dependable car, and I'm going to take the money I've been paying towards the loan, and here's how much money I'm going to be able to save up. Cast a vision because I think she's controlling because of some type of fear she has. And I think when he shows that second scenario, or, Mom, mom then technically it is yours and i'm going to start taking the money i've been paying towards the loan i'm going to save up for a car for a beater and eventually get a ten thousand or whatever i think he i think he forces that to let her have to deal with what

my baby doesn't want the car on paper i think it's going to work in his favor. Yeah. And that's what, you know. But that's the thing. That's the thing. It's weird. What's going on with a parent who will go, no, I'd rather pay debt payments on a car. Because they think that they're always going to have debt. And they're teaching them a lesson on how to handle debt. It's just stupid. Ben is with us.

Ben. It's true, though. Ben's going to be up in another hour. Not this hour. But anyway. Because he wants to pay it off. He wants to sell it. And they're going, no.

Here's the thing. So you think that's conditioning? Yeah. It's mom and dad believe it. They don't believe they're bringing harm to him. Right. Of course. No, no, no.

They think he's just being silly and naive well you're always going to have a payment son so you might as well just understand that now wow and um you know because a lot of people believe that yeah and that leaves them in this situation so the main thing to him is don't be disrespectful uh don't be angry uh don't be unkind uh and don't be ungrateful i'm very grateful for what you've done here, but I just can't do this anymore. It's breaking the back of my spirit. It's killing me. And I just can't do it anymore.

Set your people free, please. And I think if you go that way, you can at least get heard. And add to that what Ken was saying, and that is, here's a vision of where we're going. I mean, you can take the money from the car, the equity in this car. It's an unusual time in the car market. Buy a $10,000 car that'll do everything this car does. You're 19 years old in a $25,000 car, making $15 an hour. At his age, I was driving a car that had 300,000 miles on it.

$15 an hour. How did you think this was a blessing? Puts this hour of The Ramsey Show in the books. This is James Childs, producer of The Ramsey Show. Did you know The Ramsey Show is one of the most popular podcasts in the world? Subscribe or follow today wherever you listen to podcasts.