The Ramsey Show - App - My Wife and I Are Stationed in Different Places (Hour 1)

Episode Date: August 4, 2020

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Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studios, it's the Dave Ramsey Show, where debt is dumb, cash is king, and the paid-off home mortgage has taken the place of the BMW as the status symbol of choice. My co-host this hour, Ramsey personality, the voice of millionaires in America today, Chris Hogan. I'll be answering your questions about your life and your money. And just a warning ahead of time, he kind of makes things messy, so you never know with this guy. He's kind of rough. Oh, geez.

It might not be pleasant. I'm just warning you. Well, I just want all the listeners out there to know that I am the kinder of the two, and so you will get compassion from me along with a little bit of wisdom. I said a little bit. Except for that part. Open phones at 888-825-5225. We're here to help you guys.

All kidding aside, the problem with Chris and I is we like hanging out with each other so much that we get on here and cut up instead of answering your questions. So Brandon is in Hartford, Connecticut. Hey, Brandon, how are you? I'm good. How are you guys? Better than I deserve. How can we help? So than I deserve. How can

we help? So both me and my spouse are active duty military, and we're currently stationed in two different states. So we've got two separate rent payments due. We also own our, we have a mortgage on a house in South Carolina where we were both currently stationed. So my question is, should we continue to rent for the next 14 years while I'm still in the Navy? Or should we try to buy a place when we can be stationed together again? It's very unusual for military to separate people, isn't it? We were separated when we got married. So we're working on getting stationed together, but just due to the circumstances when we met and got married, it hasn't happened yet. Okay. All right.

So you're saying if you marry after you're in the military, that they're a little less stringent about shipping you together then, huh? It just takes a little paperwork and time. Okay. All right. So it's probably not a 14-year sentence that you're going to be separated, right? Nope. My spouse plans on getting out after the contract's up.

Oh, okay. And when is that? Another five years, but hoping to be stationed together within the next two. Okay. That's good. Okay. Well, we work with the military all over the world and have for 20 or 30 years. And Hogan, I'll let you take it.

Yeah, I would tell you this, my friend. First of all, thank you and your wife for the service to our country. Freedom is not free, and so I'm very grateful. Looking at this, Brandon, what I would do is you all are looking to simplify life. And so I would definitely put the house that you all had up for sale and renting right now is the course of action while you're saving up to buy. You want to make sure you're sitting still for four years or longer before you look to purchase. And so that's the game plan that I would take and put you all on that path. Brandon, the problem is we've worked with military folks for so many decades, and the typical pattern is, oh, buy a house, buy a house, buy a house, buy a house.

You need to get a house. You got to get a house. And you end up with a stinking house everywhere you were stationed. And so you have these rental properties by default scattered all over the nation, which is a bad strategy for rental property. And they're in markets where oftentimes if it's a small market and the predominant economic force is the military base, guess what? There's always an oversupply of houses for sale because they're always shipping you guys out and everybody's putting their house on the market. And so it limits the appreciation sometimes in those markets and it makes it very difficult

to unload a property in those markets, which takes away the fun of owning real estate financially. And so, no, I'm with Chris. I would rent until you're going to be sitting in a place long enough that you can sell the property. Now, you mentioned Navy. You know, an example would be San Diego. If you can roll in there and you guys have your finances in order and you bought a home there, you're going to see

enough appreciation and the market is hot enough to sell the house when you leave that you'll probably come out on owning real estate if you're there two or three years. If you do that in Podunk Militaryville somewhere uh you're gonna get hammered yeah and you're gonna get stuck in a house and that's what generally happens uh and we just see this as not being a blessing i love real estate i want you to own real estate i don't want it to own you and i agree with chris and we appreciate you guys service both of you but i i would be a renter for a while and just pile up a big old pile of cash. And when your career stabilizes, it allows you to stay in a place a long time,

or you land in a place where you've got heavy appreciation and a hot market, so your days on the market, your DOM, when you get ready to put it up for sale, are small. Then it makes sense to buy, and only then. Williams in Tampa, Florida. Hi, Williamiam how are you hi dave it's a pleasure to talk to you you too what's up hey uh you know i've been following your plans since uh february of 2007 and we have progressed through everything and we became everyday millionaires in april of. Way to go, man.

Touchdown. Yes. Well, since then, we are so tied to you that you don't have anything beyond the Every Day Millionaire. And so for the past two years, we have sort of kind of been treading water and haven't been motivated to do more. And so I'm asking you, how can I be a little bit more motivated to do more? I mean, our giving seems to be helping family members. So we are doing extraordinary giving,

but it seems to be helping struggling family members in this time. But I wanted to know how to be motivated to continue to push and do more because we have sort of been treading water and haven't progressed much because we're so tied to the hip to you i appreciate that well i'm gonna send you a copy of the legacy journey which is the book i wrote about the stage of life that i'm in now which is a notch or two beyond where you are but you've done an incredible job congratulations so i'll send you a copy of that i haven't had to work mathematically in a couple of decades um so why do i continue to set goals and do that well number one uh you know not having something to uh aspire to uh causes your brain

your body your relationships and everything to atrophy. And so you've got to set some kind of carrot out in front of you. And I think probably your outrageous giving to your family starts to sound like it's a little bit out of whack. But for sure, you need some outrageous giving for someone somewhere that you have a heart for. And that's not your family that's uh uh sex trafficking that is uh the unborn that is uh you know setting up a medical clinic in the downtown area and you know getting people medical care that couldn't i don't care what it is but find something that lights your fire and get your hands dirty in it and give them money.

Go down there and serve and give them money, and you'll start to come alive in that area. I'm in a little bit of an unusual situation because I get to do that and run this business too because it's the same thing. I mean, I'm out here helping people every day, and I love doing it, and that's the only reason I keep doing it. I keep telling the team, if I ever hate doing it, y'all are screwed because I quit. You know, because I don't need to do it. That's not the point.

And it's not bragging. It's just what you said, William. This stuff works. But you need new goals. You do. You got to have something to chase, something that gives you your ambitiousness and the desire to serve. Those things are necessary.

Yeah. It's necessary. Hold on. We'll send you a copy of legacy journey in today's world technology and innovation are crucial for any company's success but the primary focus should always be on you and meeting your needs. That's why you get the best of both with Zander Insurance and their term life plans. Zander uses time-saving technology like over-the-phone applications, voice or electronic signature, text message updates, electronic policy delivery, and even plans with no medical exams to speed up the process of getting you the protection your family needs. One of the reasons I've endorsed Zander for 20 years is they never skimp on service.

They are committed to serving you, whether you want to do business online or need that personal touch. You pick your path. Go to Zander.com or call 800-356-4282. Zander will guide you through the whole thing, keep it simple, and find you the best rates. That's Zander.com or 800-356-4282. We're just talking to that military couple. Chris Hogan is my co-host today here on the Air and Ramsey Personality about buying a house, selling a house in the military. And, you know, the main difference sometimes between a house that sits on the market and one that actually sells is the real estate agent.

Who knows what the flip they're doing. Yep yep they have what's known as a clue and uh it starts with you knowing the value of a good real estate agent uh your friend who just got their license can be sweet and they can be your friend but they can't sell your house no this is the most expensive asset that you have, and you do not turn it over to a beginner. You don't give the keys to your Ferrari to somebody who just got their license. It's a bad idea. This is why we endorse the top agents across the country, our endorsed local providers. It's easy for you to find a quality pro out there Never again sign up or pay a subpar agent And then be shocked that you have a subpar experience I mean, really

Get your home sold for what it's worth Get it sold fast Find the house that you're looking for Get the deal done with a good buyer's rep Go to DaveRamsey.com slash agent And you can find a real estate agent with our ELP program, our endorsed local provider program, that gets the job done. Okay, Dave, real quick, because you probably are one of the top five people that I know

that own the most real estate. There's a phrase that's used that you make your money on the buy. Okay, what does that mean for people out there that are looking to be first-time homebuyers? For first-time homebuyers, it doesn't matter as much because, you know, if you pay, quote, retail, quote, market value for it, as long as you get a good home that's got good bones, a good floor plan, think about the buyer when you're reselling it. Okay. And, you know, if you got a good deal because it's got a bad floor plan, when you get ready to sell it, you're going to give somebody a good deal because it's still got a bad floor plan. You know, if it's ugly or in a bad neighborhood or those kinds of things, that's still going to be that way when you get ready to sell it.

So you don't get a deal that way. Right. way right now if you can get something that needs a little bit of a fixer-upper light work not heavy maybe a roof maybe some landscaping maybe some carpet and paint that kind of stuff if you can get a deal that way fine but you need to get it cheaper than the cost of the repairs plus your labor oh because if you just save you know you go well you know it's ten thousand dollars worth of work and i can buy this hundred and fifty thousand dollar, you know, it's $10,000 worth of work, and I can buy this $150,000 house for $140,000, so it's a deal. No, you just broke even. You might as well have bought one that's already done.

That's right. So buy that one for $120,000 and get your $20,000 worth of equity for screwing around with the work, right? Okay. You know, something along those lines. That's what you're looking for. But it is made in the sense of you do what's called a value purchase, meaning that you're buying in a neighborhood that's going to appreciate. You're buying a property that looks good from the road. It's got a good quality bone structure to it.

Right. I mean, ugly goes clear to the bone, you know. And so you just can't do that stuff. Now, when it comes to investment property is where I use that phrase a lot. Money's made at the buy. I do not pay retail for investment property ever ever i'm always buying at 25 to 35 off minimum and i haven't bought in a while because the market's been hot number one but number two we've been dumping money in these concrete holes over here called

ramsey solutions we've been building these stinking towers and they suck up money like nobody's business. So that's where all my money's gone, into those things. So construction, you know, I'm making my money at the buy, because as soon as we turn the key on one of these things and they're completed, they're worth X more than what we have in them. That's right. But if you're going to buy a million-dollar office building, retail value,

you want to buy that at $800 or don't buy it. You know, you want it because your money's made at the buy. At the buy. Okay. Yeah, you're going to make some more on appreciation later, but if you pay full retail, full market value for an investment property, and your only hope is increase in value is where you're going to make your money in rents, you know, you've missed out on a huge portion of the benefit of buying

real estate for an investment. Well, and you're not waiting on them. They're not going to advertise at 25 or 30 percent. You're saying you call in with that offer. Yeah. Yeah. I'm the nicest vulture you'll ever meet. Are you not worried about offending them?

I just tell them, listen, I don't want you to be offended. OK. I love you. And if you listen, if I were you, I probably wouldn't do this. But if you're in a situation, I can write you a check and we'll close by Friday. It's cash. It talks. And, you know, if you're in a situation where you want to close by Friday because you got a COVID mess, I'm getting you out of your mess and I'm getting a deal.

So we both went. If it's not, if this is insulting to you, then that means you have other options and you should take one of those other options because my offer is not going to be a good offer. That's good. And it's just I'm not unfriendly about it. No, no. But it's just it's a transaction. And if you look at it somehow as an emotional, particularly investment property, there shouldn't be emotion in that. But in buying a residential property, emotions can happen.

Oh, I know. So how do you keep them out? A hundred percent of the houses I have bought for us to live in, I paid too much for. Because of emotion. Her name is Sharon. It was S-W-I. Sharon wants this. I want a verbal asterisk so Sharon knows that this is Dave talking, not Chris.

All right, go ahead. Go ahead. Listen, she doesn't have to worry about that. She can recognize the difference in the voices. All of America can. But no, I mean, she decides she's going to buy something, and this is where we're going to live, and she loves it, and it's just pretty, and I'm screwed. Right.

I'm going to pay full freaking price for that, and I don't get a good deal on that house. And so the house we live in, we built, but the lot, I didn't even get a good deal on because it was a premium mountaintop thing and all this stuff, and she's like, I'm like, no one. Who would pay this for this lot and she says you are and that that ended the conversation so swi sharon wants it well you put up with me for 30 years you get some stuff that's it you should get some stuff very good all right julie is in san francisco what's up julie well good morning thank you for taking my call. Our pleasure. I'm new to your program. I sure wish I would have found you years ago.

But I have a retirement question for you. My husband is looking to retire. He's 57 and will get about an $8,000 a month pension if he takes the single pension. If we do the shared pension in case he passes prior to me, that would mean it will cost us between $200 and $1,000 based on what percentage would go to me. And my instincts tell me to instead take that money, that $1,000, and invest it rather than forego it. But at the same time, it's kind of scary. You've got good instincts. Yes, you do. You've got good instincts, Julie.

You're right where I would tell you to go. Is there a third option where you can take a lump sum? That is not an option, no. We do have retirement accounts. We have just under a million in retirement accounts. Way to go. 401K, IRA. So how much of that did you inherit how much of your million dollars did you inherit we have not inherited any and had we followed my husband

has worked his kale off honestly um had we followed your program if we found you much sooner, we would be doing even better. You're doing great. You're an everyday millionaire. You started with nothing and became a millionaire. You're the American dream. Well done. Yeah, I mean, you all listen to me, Julie. You all have done exactly what the American dream says.

You have built wealth over time. You guys have been intentional with what you're doing. And I like your instincts. The fact that you're looking at this to make sure that, hey, there's going to be some money around if something were to happen to you or happen to your husband. And so I'm just I'm very proud of you all for what you've done. Mathematically, you will come out ahead by taking the extra money and investing it. If you want some extra money to cover that in the interim, you might buy five years or ten years worth of term insurance on him. Until that extra thousand builds up to be enough to offset the loss of his pension. Okay.

Okay. Well, that's great advice. And so it's not, so you think it's okay just to have all your aches in the stock market? Absolutely. That's where mine are. No, real estate and in the stock market, as we were just discussing. Invest that difference. And see, when he dies, the pension dies.

When you die, the pension dies. That's right. Either way. And it doesn't die when you take the money out of that in the form of that $1,000 and invest it. It's going to survive you, both of you. So it's a lot better mathematically. This is The Dave Ramsey Show. We'll be right back. There are people here in the lobby at Ramsey Solutions, which is an awesome thing. And they are hanging out with us. And among them is Matthew and Megan standing on the debt-free stage, which can only mean one thing, that you're here to do a debt-free scream. That's right, Dave. Welcome, guys. Where do you all live? Knoxville. Oh-free scream. That's right, Dave. Welcome, guys.

Where do y'all live? Knoxville. Oh, fun. Good East Tennessee folk, huh? Yes, sir. Oh, good. Welcome. Good to have you.

So how much did you pay off? We paid off $125,000. Woo! How long did that take? Two and a half years. All right. Very well done. And your range of income?

I went from $90,000 to $115,000. Nice jump. What do y'all do for a living? I'm from $90,000 to $115,000. Nice jump. What do you all do for a living? I'm a nuclear medicine tech. I work for a retina specialist. Oh, very cool. A nuclear medicine tech. So is that at the local hospital or a medical outfit?

Or are you over at K-12 or what? Yeah, I work at a local hospital. Okay. All right. Cool. Good stuff, man. Very cool. Good for y'all.

Tell me, what kind of stuff did y'all pay off in this number? That's a big number, buddy. Most of it was the mortgage. Oh. You paid off your house? Goodness. We're looking at weird people. Yes.

Way to go. What's the house worth? Well, right now, apparently about $220,000. Very cool. We bought it for about $130,000, but the real estate market is booming in Knoxville right now apparently about 220 000 very cool we bought we bought it for about 130 but the real estate market is booming in knoxville yeah it is so what part of town are you in in knoxville powell oh yeah yeah nice okay good for you guys so you attacked the house what else what else are you guys i had a student loan oh okay how old are you two? 34. 36. You have a paid-for house. You're just straight-up weird.

I love it. I'm so proud of y'all. Thank you. I mean, how many 34-year-olds know you don't walk around with a paid-for house? None. Not too many. No. Way to go.

That's exactly right. That's a big deal, you all. So who started this between the two of you? He did. It's all your fault. You started it. That's me. So, Matthew, tell us the story. How fault you started it so Matthew how did tell us

the story how this journey began and how did Megan join in and so forth um so I had always been sort of a saver anyway um I wasn't really much of a spender even as a kid I would save up my arcade tickets and just never buy anything with it so it's just in my nature for some reason so um I'd always been kind of Dave-ish even before I knew of you. Um, then I'd read a couple of, um, of the books, Total Money Makeover when I was, um, probably early to mid twenties and just starting out. And, uh, I was still, I was doing a little more Dave-ish at the time, but not quite full, full force. Um, so we got married around and somewhere in there and uh at one point i started to develop a foot issue at the job i was at full time and i realized there was no way i could keep doing that

particular job because it was involved too much standing all the time and it just wasn't wasn't going to work for me for the rest of my life so i had to go back to um a different career that was sort of saturated in Knoxville, which is the nuclear medicine. So there was nothing open in Knoxville as far as jobs in that. So the closest one I could find was about an hour and 10 minutes away in Cumberland. Oh, wow. Yeah, in Crossville. So I took that job. I went from, you know, working full time, having a, you know, 40 hour a week, at least job to PRN job. I was working three full-time, having a 40-hour a week at least job to a PRN job. I was working three to four days a week and just trying to get my foot in the door somewhere

and show that I was getting some experience. So on the long drives back and forth there, I started hearing, I don't think there's anywhere to hear your radio show in Knoxville. I didn't know about the app at the time. So on the long drives to Crossville, I heard one time, I was flipping through the channels trying to find something, and I heard your show on. I was like, oh, I didn't know this was on.

So I started listening every day. So every day I would drive, it would get pounded in my head, and I would start thinking more and more, I need to start stepping this up, I need to step this up, I need to do better. And Megan's smiling because she's like he became a monster exactly yeah i'm not going to deny that so um after that there was something after about nine ten months that opened up in knoxville that was at least part-time but it was only weekends or mostly weekends so i thought you know i'm already doing i'm already

giving up my weekends let's just do seven days a week and knock this mortgage out and just not have to worry about it anymore after that wow so megan what did you say all this this crazy radio indoctrination that's how i felt at first i wasn't on board really um but then i saw his drive and determination and it made me want to also have all the debt paid off as well. Yeah. How does it feel to not have a house payment? Really good. Especially now.

Especially with COVID stuff going on. That's exactly right. I was about to say that was a weight lifted off our shoulders. We had it paid off right before it all hit, really. It was right around January, so we had a lot less to worry about. Yeah. I mean, you're in a a lot less to worry about. Yeah. I mean, you're in a completely different world than your friends. Yeah, that's true.

And when that stuff hits and you don't have any payments, not even a house payment, and you've got money. That's right. And you've got marketable skills and everything else. I mean, you're in a completely great position. Well done, you guys. Thank you. Thank you. Well done.

So you did it all off the radio yeah pretty much i mean i'd read like i said i'd read your books before but it um it really started hitting home the more i listened to the show every day so very cool unbelievable i mean this is a big deal do any of your does your family know that you've paid off the house they do what is what did they say to you um they were just very proud of us um they i guess most everybody that we told they were very supportive but it was kind of like are they really going to do it or they would make fun of me for you know not eating out with them or you know things like that to save money here there's always a detractor isn't there there is

now you can go eat out wherever you want. That's right. And we did right before we got here. And if you kind of like it, you can buy the restaurant. It's pretty cool. Good for you guys. Very proud of you guys. Seriously, job well done.

Thank you. Great. Very good. Okay, what do you tell people, Megan, now that you guys did this? What do you tell people the key to getting out of debt is? Oh, I don't know, really. I guess to just watch your money and don't spend frivolously all the time. You have to know where every dollar goes.

Yeah, yeah, absolutely. So that's what you guys have been doing. You've been tracking every dime between the two of you, watching it to be able to hit the goal so you can not have to work like maniacs. Yes. Yeah, amen. Well done. Wow. Well done. Well done.

What about you, Matthew? What is your advice to someone? They say, how'd you do that? I would say tune out the naysayers the best you can. Find something that specifically speaks to you to keep you motivated like I did. Those are the two biggest things I would say. Yeah, you need a why. Yes.

And then the people telling you you can't, they have to go away right yeah very good good job you guys well we got a copy of chris hogan's book for you everyday millionaires you are on pace to be that you already got 250 000 bucks in a paid for house it's all downhill from here man you got it very cool and you got this wonderful income and no bills man what an incredible place to be. Very well done. All right. Matthew and Megan from Knoxville. Count it down. $125,000 paid off in two and a half years in making $90,000 to $115,000.

Count it down. Let's hear a debt-free scream. Three, two, one. We're debt-free! Woo! Woo-hoo! two one we're debt free that is so good yes that is so good very very well done very well done i mean so young dave that i mean to be at that age no no mortgage, no debt whatsoever, now they've got the really incredible opportunity to become everyday millionaires. Well, they will based on the track they're on, unless they go sideways and revisit the land of stupid or something.

But the lady we talked to from San Francisco, I mean, that's all they did. She said she had a million dollars, and she said, we didn't even do that as good as we could have done it. As we could have done it, that's right. My husband worked his tail off. Yep. And, you know, in the study that was done for your book, Everyday Millionaires, we discovered that somewhere around 90%, 89% of millionaires were not millionaires because of inherited wealth.

That's exactly right. And it's the largest study of millionaires ever done. So I know some of you have political opinions, but they're what's known as wrong. And so it just didn't happen that way in the real freaking world. No, not at all. And another thing in the study that people need to be aware of, 97% of the millionaires we talked to said they control their own destiny. That means it's a matter of, hey, if we got dreams, we're going to chase it down. You can try to stay out of my way if you want to.

You're going to get run over. I'm getting to where I want to go. Yeah. And 63% of the public felt like they'd control their destiny. Big difference. Yeah. Because, you know, are you going to kill something and drag it home, baby? That's right.

Making it happen. Hey, if you want the details behind the study, Chris has a quick read called The National Study of Millionaires. The book is out. It's got 144 statistics in it. But if you want to go nerd on it and get into the study, get this little $9 book, and it'll tell you all the background and history on the study. Yep.

It's VALO. Grab it. Thanks for joining us, America. This is the Dave Ramsey Show. Chris Hogan is my co-host, Ramsey Personality Today here on the show. We're answering your questions about your life and your money. Open phones at 888-825-5225. Sean is in Charlotte, North Carolina. Hi, Sean. How are you?

Hey, good afternoon, gentlemen. Hope you're doing well. We are, sir. How can we help? Hey, just trying to get some clarity. Just a back story. I'm a single dad, 47 years old. I have a $230,000 home. I still owe $132,000 on it. My salary is about $120,000 a year. I have currently in my savings $175,000. Now, I've done some research, and I just kind of stumbled across you, and so I've been trying to follow the baby steps. I still owe $15,000 on an automobile that I plan on paying off this week, which will leave me 160. Um, and in, in, in reading your, your direction and kind of following

up with that, I guess my next step would be to put 35 into an emergency account, pay the rest on the home. But my question is this, I also have a senior who is going to soon start college. And I plan on moving out of that home in the next four years and buying another home on more land. So should I take that money and try to invest it somewhere? Should I just pay it toward the home? No, let me back up. I also have, I have $300,000 in a 401k and $100,000 in company stock.

So I'm just trying to get some direction on where this money should be best used. Sean, you have done an amazing job of saving. Where did the $175,000 come from that you have in savings? I actually, over the last two years, I actually cashed out some non-qualified stock options in anticipation of my son going to college. Okay. My mindset originally was to help him with college, but then the more I discussed it with folks, the more they said, well, that money could be better used elsewhere.

So that's what I'm trying to maximize, where I use that money. How's he going to go to school? Well, I mean, he's got a little bit of it taken care of, but obviously it's either going to be he's going to have to take out through their loans, which I don't want him to have to do. I want to help him. Whoever's telling you that that's a plan, listen, whoever you're listening to that says that's a plan is an idiot. Okay? You don't need him to have to do i want to help whoever's telling you that that's a plan listen

whoever you're listening to that says that's a plan is an idiot okay you don't need to listen that that's you okay invest the money and your son takes out student loans well that's a dumb butt suggestion okay you wouldn't do that you know you wouldn't do that you're a saver you wouldn't have even thought about that so now you've got good common sense dude and i think you trust your instincts uh and your instincts are telling you that if you paid off your house and your car and you had an emergency fund and you have a hundred thousand dollars in additional stock that's not tied up in retirement that the boy's going to school without any dadgum debt you don't have a house payment anymore and that's what i'd hope for yeah yeah i guess i was just i guess i'm just scared to

to take that huge amount of money and and pay it off to the house um if you hate it you can go get you a mortgage later yeah right and you're talking about you may sell it in four years. You may not. Either way, you don't have a payment. But think about it. The home is still going to appreciate, and it's going to sell for what it sells for. You take that, and then you buy the next house. Yeah.

If you hate being debt-free, you can get your mortgage. So you think my best avenue here is to keep the $35,000 and the $6,000 emergency fund, pay off the car and the home, and just continue investing in my 401k? Stop a second. Okay. Just breathe this in for a second. You don't have a house payment. You don't have a car payment.

You have $35,000 plus $ plus 100 000 in stock plus your 401k you make 120 does that not feel peaceful to you oh it's it's very peaceful yeah and and there's a reason for that is you you need to do personal finance not just with your mind but also with your heart because your heart is where you measure risk. And people who leave risk out of these scenarios that they're suggesting to you are the ones that haven't lived life very long. And I'm old, so I've seen risk.

I've done some stupid butt stuff in my life. I've seen risk. And you don't want risk. And so you're going to be a single dad with a paid for house making 120 what you can't cash flow on college you can use some of that stock to do and the son your son's going to go to school when you get ready to move to that land you're going to sell the house and when you have the closing you know what they're going to hand you a check for all of it. You're not losing a dime.

Sean, does anyone else in your family own their home free and clear? You may have lost him. You know, this is a mindset change, you know, Dave. And, you know, I can imagine, too, you go from seeing that dollar amount sitting in the savings account, right? To now all of a sudden talking about using it, but just like you did, given the mindset of not having the car payment, not having the mortgage payment, then what? When I stand, not lately, but when I stand on a stage in front of 5,000 people and i say i want you guys to imagine what it'd be like to have no debt no master card no discovered bondage no american distress no car payment no student loan not even a house payment just breathe that in when there's a crowd that size, you can audibly hear the sigh. Yeah. Sure can.

And that's called common sense. Well, it's not sophisticated. Yes, it is. If you actually understand risk, it's sophisticated. It's more sophisticated than the dumb butt ideas to invest the money and take out a student loan. That's just straight up dumb butt. Yeah. I mean, that burns me up.

Somebody telling that young guy to do that. He has done such good job follow your instincts sean follow your instincts they're telling you what to do and follow through on it you don't have to do it because we said do it it's not like you're on the dave ramsey plan this is your grandmother's plan yeah your grandmother would have done this well most of your grandmothers um if not maybe your grandfather but i mean you know still the point is it used to be called common sense. It's just not common anymore. Everybody tries to find some shortcut by going around the barn six times and do some kind of double backflip sophisticated bull crap.

Microwave it. Nuke it. Make it happen quick. No shortcut to any place that's worth going. No, it isn't. This is a crockpot, baby. That's how it works. Alex is with us.

Alex is in Baltimore. How are you, Alex? I'm good. Thanks for taking my call. Sure. How can we help? Yeah, so I'm currently a college student. I have two years left until I graduate with my master's.

I've been pretty lucky so far with school. My parents have paid for it. I currently make around $2,200 a month, and I don't have any expenses besides car insurance. I've got about $24,000 saved up. And I guess my question is, what advice do you have for college students that don't have a big shovel and they're looking to start planning for

their future early what are you studying marketing get really good at that you are your best investment at this stage yeah okay alex how are you the 2200 you're making a month right now how are you, the $2,200 you're making a month right now, how are you making that money? I'm working full-time. Working full-time. During the summer I work, what did you say? Okay, you're working full-time? Yeah, so during the summer I'm doing an internship, and then once the fall starts I'll start working part-time

and going to school full-time. Okay, wow. You're a go-getter, man. Yeah, you are. So, Alex, actually, here's what my point is, all right? If you can continue on the track your own, making money, working, and pile up some cash, when you come out of school, you use that pile of cash to set yourself up into your new life,

into your new career for marketing. You finish your college career on time in four years. You study. You put the tools in your belt. That is a better return on investment mathematically than a mutual fund is. So education that's usable is more valuable than a mutual fund. And that's what I would have you to invest in and make sure that you graduate. And if you've got an extra 50 grand laying around when you come out, good.

That just gives you a great start. Well done, sir. Yeah. This is James Childs, producer of The Dave Ramsey Show. Once again, you made The Dave Ramsey Show one of the top four most popular podcasts last year. To get your daily dose of motivation and inspiration from the Ramsey Network, subscribe or follow today wherever you listen to podcasts.