The Ramsey Show - App - Need Advice Planning Wedding Budget (Hour 3)

Episode Date: November 18, 2019

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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 net 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. You jump in. We'll talk about your life and your money. It's a free call at 888-825-5225. Sharla starts off this hour, or Sharla in Tennessee. Hi, Sharla. How are you?

I'm fine. How are you? Better than I deserve. What's up? Well, my husband just recently retired from this home after 36 years, and we were wondering, in retirement, we lost our life insurance, and we weren't sure whether we needed to continue it. We can take it on a policy of our own, you know, through MetLife,

but I'm not sure whether we actually need it. We have everything paid for, and we have two 401Ks at almost a million dollars, and they're between the two of us. Way to go. Congratulations. You did it. That's awesome. Did you guys inherit a bunch of money?

Were you already like wealthy people? No, sir. No, sir. Hard work. We paid off everything. We've been debt-free since we were 34. We're 60 now. Well, way to go.

So well done. Well, the answer to the question is, here's how you answer the question. Number one, there is no category in which you would do a life insurance policy with MetLife. They sell whole life, life insurance, and expensive term, neither one of which I'm going to sign you up for. But do you need life insurance in general? Probably not. Let's walk through the exercise.

The way you answer the question is pretty simple. If he died today, financially, could you live off of the income that your nest egg creates? Oh, yeah. No problem. If you died today, could he? Yes, sir, he could. could yeah i think you're right i think no problem is right because you probably you know if you got over a million dollars in there you got no payments of any kind no house payment or anything right no no car payments nothing everything's paid for yeah and so you wouldn't even you probably wouldn't even touch half of the income coming off

of that you might depending on how you've got it invested. But make sure the money's invested well. And you probably roll it from a 401K into an IRA. And so you've got more access to different funds and you can control it. And your job in retirement now is to manage this money well. And you don't have to do a bunch of dipsy doodles. You just need to think more clearly, very specifically, about which mutual funds it's invested in. But if you had a million dollars invested and it made 10%, that's $100,000 a year.

Okay. So I didn't think we did, but I didn't want to make a stupid mistake. Well, it's not a stupid mistake. It's a really good question. But that's how you do it and see the the thing we think about with life insurance is back then when you were in debt and you were 34 and you were you know you were just starting the kids were little and you know if something happened to him then you've got to raise kids you got to finish paying off the house you

got to pay for college you got a lot more expenses and you don't have as big a nest egg at that point either. And so you still got debt at that point, so you would need life insurance back then. But today, you're in great shape. You're an everyday millionaire. You did it. Congratulations. All right, Ed is with us in California. Hi, Ed.

How are you? I'm doing fine, Mr. Ramsey. Thank you for accepting my call. My pleasure. How can I help? I am 62. I plan to retire at 67. I'm a licensed independent contractor. My real question is I have about $200,000 in collectible comic books.

I've been collecting comic books from the nineties and I'm wondering, my original plan was to sell these in after I retired as just a supplemental income. However, I'm thinking of selling them before. My question is should I sell them now or should I wait until I retire? I'm pretty much debt-free. I do have a mortgage of $300,000. My home is worth about $550,000. And other than that, I'm debt-free.

Okay. Well, well done. And your nest egg is what size, not counting the comic books? I have about $60,000 in a couple of different IRAs, Roth. So the vast majority of your net worth is in the comic books? Exactly. Okay. All right.

Well, my guess is that not only do you have this collection, but you're probably an expert, a self-made expert, to have a collection that size and to actually know what they're worth. Right. Yeah, I've been following it for many years. Yeah, you probably have gotten a reasonably good rate of return on them to date, and you probably are in a better position than i am to ascertain what they will go up in value as a category collectibles whatever you want to drop into that bucket cars comic books art uh doesn't keep up with good mutual funds or real estate as a category. Now, the caveat to that is most people don't stay on top of their hobby enough to make it make the kind of money that an investment will, a traditional investment will make. It just sits there and passively does whatever it does. And I've had this Joe DiMaggio baseball card for 46 years, and now it's worth X or whatever, that kind of thing, right? But they didn't really manage it like you would manage investments, and so consequently they don't.

Now, some people, I've got a friend that has probably a million dollars in collectible cars. He's a multi-billionaire, and he is so into these cars cars and he's so into making money on it even though he doesn't need the money but it's just like a game to him that he actually makes a great rate of return messing around with these collectible cars but that's because he's he's neck deep in it all the time he's messing with it all the time if you want to continue to do that you might make more on these than you would make just investing the money in mutual funds or than you would make by paying off your house with the money or something like that. But whoever comes along after you is probably not going to do well

because they don't have your expertise in liquidating them. All of that to say, unless you just love messing with it on a daily basis so much, I'd probably liquidate it, or at least the vast majority of it. Okay. The people coming after you. You know, because I've been thinking of selling some of them, just kind of because I'm getting too many almost. Yeah, yeah.

And, you know, what I would do is say I'm going to keep 10%, my favorite 10%. Okay. And that may be not numbers of dollars. That might be numbers of books. I don't know. But I have a firearm collection that I have thoroughly enjoyed building, the firearm collection, and it's probably worth a little more than your comic books, give or take.

But I know what each of those guns are worth, where they came from. I know the history on them. And it's just kind of I got into it, you know, like you did with the comic books. And so, however, even though my sons and sons-in-law will enjoy shooting those weapons, they would not be able to maximize the value dollar-wise of those things because they don't know them and know what they're worth upon my death. So upon my death, the value of that collection will go down because the knowledge of that collection dies with me, even if I wrote a half a book on the stupid thing.

So that's what the problem is with your situation. You hold exclusive keys to the knowledge that make this valuable or largely valuable. I would get rid of a bunch of it on that basis. Folks, let's cut through the bull. Interest rates are exceptionally low, so you're missing out if you have not called Churchill Mortgage to see if you can save money on your home loan. Lots of other companies are out there claiming great deals, but don't get lured by slick advertisements. No-cost refinance offers do not mean they're free. Churchill Mortgage has a no-bull refinance. This means there are no hidden fees.

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761 Old Hickory Boulevard, welcome to the Dave Ramsey Show. Jack is with us in Pennsylvania. Hey, Jack, welcome to The Dave Ramsey Show. Dave, it is an absolute honor to speak with you, and I would love to hear how you do. Better than I deserve, sir. How can I help? Love it. Hey, Dave, my wife and I came on to your plan earlier this year. We have to thank you because it gave us the guidance we needed.

Since February, we've paid off $90,000 in student loans. Way to go. And, yes, thank you. It's been a hell of a year. Looking ahead, we have another $65,000 to go, but that money is in my mother-in-law's name. But we've agreed to help, and we'll probably do the

bulk majority of paying it off. Now, it is her doctor's opinion, though, that she is now permanently disabled. So we're definitely interested in pursuing disability forgiveness. And I was just wondering if you had any advice on that to kind of ensure that we don't get tangled up in any bureaucracy or any technicalities to smack us along the way. It's like a lot of technicalities in bureaucracy. My experience with it is through people like you that I've talked to, obviously, but the people who actually get the forgiveness due to disability are the ones that persist.

You have to push through the ones that persist you have to push through the bureaucracy and get every box checked and every eye dotted and every t-crossed and not let up until you do it's a $65,000 part-time job and so the ones that have had the best and I I think it may actually be a thing that is a requirement, but the ones that have had the best usually takes about a year, is after she has been declared permanently disabled, and the federal government has agreed with that, meaning that she has applied for and receiving SSI. She's receiving her Social Security disability.

Now, she's 65. Go ahead. No, she's currently on the Social Security, but it's for the three-year review, which would be the next level down. Her review on that, though, comes up in May. That being said, from what I could read on the website, it looks like one of the provisions, if you need it, is a physician's assertion that you're disabled.

And she does have that. Her doctor wrote her a note already saying that she's permanently disabled. Okay. If that will do it and you can get it pushed through, then just follow the directions on the website. But here's the thing. You've got to follow up. You've got to follow up. You've got to pound them.

You're not going to assume they do their work. It's bureaucrats. They don't care. They're horrible at service. And we all know that. I mean, you're dealing with the federal government, right? So just don't act like you can just send in the application and then five years later go, I wonder what happened to that, you know?

That's not going to work for you. You're going to have to go put it in, follow up, put it in, follow up, call them, write them, email them, hassle them, find out what the timeline is, how long does this take, push it kindly, and you're not yelling at somebody, but this constant push, this pressure on the system, and that's how you get things done in a situation like that. It's the only way. And so that's what I'd recommend.

And, yes, I would push that on through. As a Parent PLUS holder, if she's become permanently disabled, that loan will be forgiven, and it is one of the two ways you get out of a student loan. Die or become disabled, and that's it or third ways pay it off but hopefully we're going to be able to run this through for her and you can take the point on it uh you can even get a power of attorney specific power of attorney if you need to to act on her behest and do the work for her if you wanted to and um specific to this task in other words you would not be able to do other things in her name but just this task.

And that's not hard to do. It's a one-page document. And so all of that can, but just someone has to have, make this their mission until it's done. And it won't be someone at the federal government. You do not have an advocate there. You are the advocate. Hey, thanks for the call, man.

We appreciate you joining us. Blinds.com has a 100% satisfaction guarantee that means even if you mismeasure or you pick the wrong color, they will remake your window blinds for free. You get free samples, free shipping, and with new promos all the time. Use the promo code Ramsey. You will always get the best deal. Ramsey is a magic word. You know that, don't you?

Yeah. Our question of the day comes from Benjamin in Virginia. Afternoon, Dave. I just got engaged. Woo-hoo. We're beginning to plan our wedding. Woo-hoo. Should I hit pause on my debt snowball?

Yes. To pay cash for the wedding? Yes. Also, would it be okay to set up a joint checking account with my fiance specifically for wedding saving and expenditures only? Yes. This would allow us to save together and hold each other accountable on wedding expenditures while also keeping our personal finances separate. Yes.

We paid for our daughter's weddings, and that's exactly how we did it. We sat down with the bride and groom-to-be. They put together a wedding budget which you need to do always when you're doing a wedding because they get out of control um and with the wedding budget we agreed to that number we put that number in a checking account there was a joint checking account between the future bride and groom it was the wedding account and there was not going to be any more money put into that account. That was the budget.

That's what we agreed on. All four of us agreed. We wrote the check. And then at that point, the father of the bride is done. I don't have to get into the cheaper chicken discussion. I don't have to get into the chairs discussion. I don't have to get into these things. You simply stay on that budget. And by the way, a wedding, and I know it's a romantic and wonderful time,

and we like throwing a party. We're Ramses. We like to dance, and we like to have a big time and celebrate this wonderful occasion. It's a big party for us. We like it. And we had three great big weddings, all three of our kids we just love them and uh of course we weren't in charge of the last one with my son getting married but hey we got in the middle of it we're there man and we like having the party so uh we're not against the romance of it but it's a project it's an event you're an event planner and you need to be an event planner and you need to stay on budget and you need to be an event planner, and you need to stay on budget, and you need to understand what the budget elements are, and what you've got allocated for

the photographer, what you've got allocated for the dress, what you've got allocated for the preacher, what you've got allocated for the venue, and the big dog on the list, particularly if you're going to have more than six or eight people come, is going to be your reception, and that's the more expensive item on the list. And you write that out, and you look at your food cost, and you look at the venue cost, and the DJ or the band or the whatever, Billy Bob with his iPod. I don't know what it is, but somebody's doing something, and we've got to write all this out, and we have to have a game plan.

And then if you have $1,000 budgeted for the dress, you don't spend $8,000. That's not what you do and uh whatever the number is you got to have something you manage to the number and you manage the date and it's a project it's project management and this is how we're doing it so um that's that's how it's done and so good stuff hey if you ever feel frustrated that you didn't learn about money when you were in high school, if you're like me, you could have avoided some of the dumb mistakes that we make out here. But you can't go backward. You know what we can do?

We can help today's teenagers. And that's why our Foundations in Personal Finance curriculum exists. It's now in 48% of the high schools in America. It helps students learn how to handle money wisely so they can enter adulthood with freedom to pursue their dreams. This curriculum is the real deal, and teachers across the country know it. If your business has a heart for the next generation, you could help. Businesses across the country are helping provide this life-changing curriculum to schools and their communities. To learn how your business can make a difference by sponsoring foundations in personal finance, go to DaveRamsey.com slash sponsor.

That's DaveRamsey.com slash sponsor. There's a young man, I can't think of his name right now, Jalen, I think is how it's pronounced. I believe he's playing for the Eagles, and his news story is all over the news about how conservative he is with his money. He's a rookie, just came into the league. And he learned how to handle money at Father Ryan High School here in Nashville, taught by Coach Carson, who was one of the first people to ever teach our stuff in a high school. Coach has been doing it a long time, people to ever teach our stuff in high school. Coach has been doing it a long time, and this young man's all over the news.

A friend of mine sent me a link this morning to the story. It's all from the high school curriculum. This is the Dave Ramsey Show. If you're going to join this team, we want someone who cares and has a passion about what we do. That's why we trust LinkedIn Jobs. They are the best at matching the right person with the right job. We don't want someone just looking for a 9 to 5. We want thoroughbreds. One of the things that distinguishes a world-class thoroughbred in racing is the size of their heart. A true thoroughbred in the workplace is someone with a heart that is going to be staying and growing with our company.

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Terms and conditions apply. In the lobby of Ramsey Solutions on the debt-free stage, Ivan and Cynthia are with us. Hey, guys, how are you? We're doing good. How are you? Better than I deserve. Where do you all live? Sacramento, California. Oh, fun.

We were just there. Yeah. Did you come over yesterday or when? We were on this side for a wedding. Oh, you've been over here? Yeah, we've been out here for a few days. Okay, so you missed the event on Saturday. It was incredible.

It was a wonderful event. Well, thanks, guys. Thanks for being over here. We're really excited. Here to do your debt-free scream. How much have you paid off? $120,000 and cash flowed $15,000 as well. On what?

On medical expenses and repairs. Gotcha. Okay. And how long did this take you? 19 months. Wow. And your range of income during that time? We started at $124,000 and ended at $185,000.

Cool. What do you guys do for a living? We're chefs. Oh, wow. Big guys do for a living? We're chefs. Oh, wow. Big time. Very cool. We're both chefs. We hit a couple of good restaurants while we were there.

You've got some good restaurants in Sacramento. Yeah, we do. I'm sure you do as well. Very cool. Where do you chef? I'm a chef at a restaurant called Seasons 52. And when we were getting out of debt, I was working at Eddie B's in San Diego. Oh, okay.

Eddie's Prime Seafood. So that's where we spent most of our debt-free journey was in San Diego, and we just recently moved to Sacramento. Oh, I got it. Okay. Very cool. Well, that's cool, guys.

Well done. What kind of debt was the $120,000? We had almost everything that you could think of. Credit cards, cars, student loans. Student loans, 401K loans. We borrowed money for furniture. You're normal. Borrowed money for a bicycle that got stolen two weeks later. my gosh that was me oh that's aggravating so you did you have some money in savings that you threw at

this or did you sell something big no neither wow we sold a couple of things that we saw in the house that we weren't using um you must have eaten out of the kitchen then because i mean you guys you lived on nothing to pull these numbers off. We spent a lot of time at work, and luckily we work in kitchens, so that's a good place to eat. The best, if you're that kind of chef. Yeah. Well done. Very cool.

So how long have you been married? Four years. Okay. What happened two years ago that put you on this 19-month journey? It kind of started when we got married. My sister, Laura, and my brother-in-law, Noe, gave us the Total Money Makeover as a wedding gift. So it sat on the coffee table as a coaster for two years. It kind of, no, we just weren't on fire immediately.

We read it during our honeymoon. So every time we were on a plane, we were reading through it. And then when we got back, we did Dave-ish. So we did our own version of what we thought was supposed to go. I hear that a disturbing amount of times. So like today, earlier, on a debt-free scream, I heard the same thing. We came back from the honeymoon. We didn't do it.

And two years later, we got on fire. Or three years later, we got on fire. So why did you do ish instead of wide open, do you think? I think that at first, well, actually, I read the book. And I should have had my husband read it because he's really good about details and following instructions to the T. And I'm the kind of person that will open instructions and just take parts and pieces. It's just a general thought pattern. You don't have to follow the recipe. Exactly.

He's a recipe guy. You're not. Exactly. He's a recipe guy, you're not. Exactly. So that was part of it but once we had gotten past that point we had a one year old son and we kind of looked around and we're just like we haven't really made any progress

and we got into Financial Peace University right after his first birthday. And then listening to everybody's story in Financial Peace. Yeah. When you got together and you went to the class, that made it come alive more than the book. Now, that's a good explanation. Yes.

Okay. That makes sense. And we were completely on the same page. We had the same information. And the baby's there looking at you going, I want to go to school someday. You know, that just changes your life, right? All that. Yeah. So having a baby makes you wake up. I mean, it to go to school someday. You know, that just changes your life, right? All that. Yeah.

So having a baby makes you wake up. I mean, it's just like, you know, so yeah, that's very cool. Well, way to go, you guys. So you did great. What was the what do you tell people the key was? What's the recipe for getting out of debt? Determination and focus. You know, every time there was a family event that we were invited to, we had to really

look at our budget. And a lot of times, like, we can't do it. We can't go. We need to stay on track. And we just had to maintain that focus and be determined to just get rid of the debt, kick out Sally Mae. There it is. Okay.

So you just, once you, once you saw it, it you just like like a bulldog you just got a hold of something yeah and that that there's a sense of uh that ah that thing you got to do down inside isn't there you have to be sick and tired and mechanically what did you do what did you physically i mean the debt snowball did it or the budget or the working together or working extra jobs or what do you think? If you're just talking to your friend, they go, how'd you do that? It was all of the above. It was listening to the budget that we sat down together to make out.

It was the debt snowball that helped out a lot. And it was, you know, before I got promoted, I would get off work. I'd have to work 55 hours a week at night, then, you know then driving around for a ride share and trying to get that extra income. And then looking around the house, what do we need and selling it? Just get everything and throwing it out the deck. Yeah, we did a little bit of Airbnb in our home, too. So we were just tired. You went buzzed.

We needed to get this out of our lives. Uber, Airbnb, working 1,000 hours, selling everything in sight. You went big. You went from ish to over the line. Yes. I love it. But you got out in 19 months, too. Something to be said for that.

That's the rip the Band-Aid off right there. Well done. Well done. Outside the two of you, who are your biggest cheerleaders? I'd say family, mostly. And we have some close friends, some that are also following the program now. But my sisters, parents. Yeah, our family, biggest cheerleaders, for sure.

So mostly you had good voices in your ear. Yeah. Yeah, that's good. That's good. You've got to have somebody to push you along, because it gets tiring. It does. 19 months doesn't sound like long now that you're done, but while you're in the middle of it, that's a long time. Yeah.

You can only eat so many ramen noodles. Amen. Yeah. Especially if you're a world-class chef. I mean, my gosh. There we go. So well done, well done, well done. We've got a copy of Chris Hogan's book for you, Everyday Millionaires, because you're going to be one before you know it.

You're right on the way. And that's the next chapter in your story. Chapter 1, debt-free. Chapter 2, rich. I like it. It's good chapters. Sounds good. Good chapters, and you're on your way. Well done.

Good stuff. Ivan and Cynthia, Sacramento, California, $120,000 paid off in 19 months, making $124,000 to $185,000. They worked their tails off. Count it in. Count it down. Let's hear a debt-free scream. Three, two, one. We're debt-free!

I love it! Woo-hoo! That's how it's done there is something to the total money makeover book or watching the youtube debt-free screams is enough for some people most people moving from ish to fully immersed requires a full immersion. You have to, you know, for instance, if you learn to speak Spanish and you never speak Spanish for two years, you'll forget how to speak Spanish, unless you grew up speaking Spanish. But, I mean, if you learn it as a second language,

if I take a class as a redneck hillbilly and I'm going to learn how to speak Spanish and I never speak Spanish for two years, I will forget everything I learned in the class. And the same thing is true with the money stuff. you can read the book and not go do this stuff and you don't do immersion which immersion is the best way to learn language by the way too and immersion is go to financial peace university get in a group where other people are talking about this positively get in a situation where doing your budget is like mandatory it's like your boot camp. Your drill sergeant's there, a loving drill sergeant, but still holding you accountable for being smart people.

Yeah, that's good stuff. That's the difference in ish and actually doing it sometimes is the immersion. It might be for some of you the step is you need to go on and take FPU, and that'll get you going. This is The Dave Ramsey Show. Our scripture of the day, 1 Timothy 4.12 Let no one despise you for your youth, but set the believers an example in speech, in conduct, in love, in faith, in purity. Paul Kello said, the world is changed by your example, not your opinion.

Ooh, ooh, that was good. Well, if you are not strapped with student loans, you probably know someone that is. The student loan epic plague is in full swing with $1.6 trillion in debt. It is absolutely ridiculous how bad this has gotten. And we've launched a brand new podcast that has become unbelievably popular. Wow. Thank you. The podcast has eight episodes. It's called Borrowed Future.

And it exposes the broken system that is the federal student loan program. And it shows predatory lenders how they've screwed over a whole generation of students. The final episode, number eight, drops today, featuring interviews from industry insiders, thought leaders, people like Seth Godin, Anthony O'Neill, of course me, and the message is working. Students across the country are learning that they don't have to get trapped in a student loan, and they're joining a movement of students who are going to graduate debt-free, like Anthony's book title, Debt-Free Degree. We've got over 5,000 reviews on Apple Podcasts, and one reviewer says,

best information ever. I wish I had had this before I went to college and took out student loans. I was told it was the only way. Well, you don't have to graduate with student loan payments, and find out why. Listen to Borrowed Future on Apple Podcasts, Spotify, or wherever you listen to podcasts. Subscribe. There's eight episodes. You'll be glad you did.

It is hosted by our own George Camel, who did a world-class job as our host on this. And it's a different endeavor for Ramsey Productions. Most of our podcasts are one of the personalities speaking, talking, teaching on something and in this case this is a more traditional documentary style and it is very well done. It's world class and over half a million downloads at this point. It is exploding. Eight episodes, subscribe to it. It's called Borrowed Future.

Even if you don't have student loan debt, you need to know this information and what's going on in your culture around you. We are calling for Congress to end the federal student loan guarantee program. If it is such an epic plague that we need to talk about forgiving the student loans, which the left-wing presidential candidates are all saying we need to forgive student loans, if we need to just forgive student loans, how can you intellectually do that with honesty, even have that discussion while you're still making the student loans?

That's dishonest. So the first step is not to forgive them. The first step is stop making them. Then we can have other discussions if you want to. But it's intellectually dishonest to keep making them while you talk about getting them forgiven because, of course, you're making them faster than you're forgiving them. And all we're doing then is creating a political climate, which is all some politicians want. They don't want results.

Statesmen want results. Politicians want to churn stuff and stir up trouble to get votes. Michael's in California. Hey, Michael, welcome to the dave ramsey show hey dave thank you so much for having me on i appreciate it absolutely how can i help so uh me and my wife just got married last month um it was actually a month yesterday and she had a car that she was driving because she lived at home and her dad paid for it, made the payments on it. Well, he just talked to her today and is asking her to make the payments on it now.

And I knew I should have talked to him about this before we got married. I don't want to take on any more debt, but the issue is I know I had spoken with my wife even before we got married and I said I would have been willing to make those payments on the car once we got married but we want to be debt free we have a thousand dollars in emergency fund already we're in she driving the car yes correct she is driving the car okay and it's in his name the car is in his name the loan is in his name okay The car is in his name. The loan is in his name. Okay. Tell him, thank you for the offer.

No. We want to sell the car. So don't make any payments on it. No, I don't want to take over these payments. And no, you shouldn't have to pay the payments. But we're getting out of debt. We don't want to get further into debt, and taking on the responsibility of these payments is like me going and buying a car on car payments while I'm trying to get out of debt.

And so I'm not going to do that. I already have another car on debt. Yeah, I'm not going to do that. And we understand that this is what happened up until this point, but as of today, we're married, and you're asking us to take them over. And our answer is no, we don't want to. So let's work together, and let's get this car sold. And so the original deal before you got married was he bought his daughter a car in his name, letting her use it.

And who was paying the payments then? He was. Correct. Okay. And so that was the original deal, and the only difference is you've gotten married and he wants you to take over the payments, which is a reasonable request. Right? Right.

Okay. But what I'm trying to think through here is if the car is upside down, I guess he owes that money. Yeah, I don't know if the car is or not. I'd have to look at the Kelley Blue Book value and what he owes on it. That I don't know. How expensive a vehicle is it? It's a 2010 Honda Civic, so my guess is it's worth anywhere between $5,000 and $7,000 or something like that.

And if you were to guess what's owed on it um i did see paperwork on it before we got married because i was still curious about it at the time i think it was a little over five grand okay so maybe it's not upside down it might not be no okay good that's good news because i don't want him to get hurt with this he just bought his car bought his daughter a car it's in his name he paid the payments and now he's going to sell the car and the deal's over he's not hurt right and you don't take over the payments and you're not hurt right the only issue is my wife might be hurt not having her car but i have my car that i don't drive every day for work because I have a work vehicle. So she can drive that car, and you guys can save up some money right quick and buy her a car with cash.

Yeah, that's what I'm thinking. So what's your household income? With her and me, probably about, I'd say between $85,000 and $90,000 a year. The other thing you could do is save up $5,000 in the next three months and pay it off and just take the Honda. Yeah, if he's willing to work with us on that. Why would he have to work with you to pay off the car he's asking you to pay payments on? Oh, I see what you're saying. I get it, yeah.

You just pay it off as if it were your car. Let's pretend you married her and she had a $5,000 car debt. And you make $85,000 and you pay that off in three months. Right. That's not a big deal. Yeah. That does change the discussion a little bit. Somehow I had in my head this $25,000 car debt and you guys made $60,000 or something. So ratios are a little different, 85 to 5.

Right. And you don't have any debt does she have any other debt oh no i i have debt oh you do have debt what do you how much debt yeah that's the that's the issue so i have um i have around myself 54 000 uh 31 000 is student loans 19 is on a car, and then I have about $3,500 on a stupid 401k loan that I did stupidly. Okay. I'm probably going to change my answer now that I've got a better picture. I was going on principle, and I was assuming the wrong numbers. No, I would not be forced boundary-wise to take over these payments as an obligation, okay? I get your stance on that. But this number is so stinking small relative to your car debt or relative to your income

that I probably would just say, hey, yeah, we'll take it, but be ready to get the title because I'm getting ready to pay it off. And put it early in your debt snowball and pound that sucker. It's a $5,000 car. It's not a bad idea. Maybe sell your car instead of handing hers back. But that's another way of looking at it. I'm probably going to just take care of this,

and that way you don't have to create a family issue either. But it is a boundary violation the way this went down. I agree with you. That puts us out of the Dave Ramsey Show. And the Bucs will be back with you before you know it. In the meantime, remember, there's ultimately only one way to financial peace, and that's to walk daily with the Prince of Peace, Christ Jesus. This is James Childs, producer of the Dave Ramsey Show.

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