The Ramsey Show - App - No More Excuses, You’ve Gotta Make a Change! (Hour 3)

Episode Date: March 16, 2023

Dave Ramsey & Jade Warshaw answer your questions and discuss: "I lost half my income and I'm behind on debts", "Do HSAs count toward Baby Step 4?" from the blog: How to Make the Most of Your HSA Investment, What to do with savings after marriage? Investing vs. paying off the home. Have a question for the show? Call 888-825-5225 Weekdays from 2-5pm ET Want a plan for your money? Take our FREE 3 minute assessment: https://bit.ly/3nInETX Listen to all The Ramsey Network podcasts: https://bit.ly/3GxiXm6 Learn more about your ad choices. https://www.megaphone.fm/adchoices Ramsey Solutions Privacy Policy

Live from the headquarters of Ramsey Solutions, broadcasting from the pods, moving, and storage studios, it's the Ramsey Show, where we help people build wealth, do work that they love, and create actual amazing relationships. Jade Warshaw, Ramsey personality, is my co-host today. Open phones at 888-825-5225. Matt starts this hour in Orlando. Hi, Matt. Welcome to the Ramsey Show.

Hey, Dave. Hey, Jade. Thank you guys so much for taking my call. Sure. What's up? So I just wanted to kind of see what you guys thought could be my steps and my process here. I took a different job in August of last year.

Both the job before and the job now have been commission-based. And I was supposed to make around the same amount of commission, but unfortunately I'm making about half. Why? And so I do, um, like a

trades work. So basically I go around quoting jobs and getting them sold. And, um, if I'm being really honest, I think it might be the marketing side. That's not, we're not getting the amount of calls in that we should be. Um, so just not making as many sales as I used to. What is it you're selling? Electrical work, panel replacements, rewires, that type of stuff for residential homes. Well, construction stopped. No construction stopped.

It's just that we do primarily residential service calls. So I don't know. With homeowners? Yes. Oh, okay. With homeowners? Yes. Oh, I see. Okay. For electrical problems on a home, you go to their house. Is that what you were selling before?

Yes. And it was just a different company, the company I was at before. Do you know anybody selling stuff at your old company? Yes. Are they still struggling as well they've been struggling as well so it's not the company it's more it's the marketplace yeah probably it's not marketing then if your old company was is not making what they used to make and you're you know you're you're not making what you used to make in the new company it sounds like and you're in the same field,

it sounds like the marketplace has slowed down with the economy slowing and inflation and people watching every dollar and all that kind of stuff. I actually 100% agree with you. Okay. But there's a wide variety of other issues, but I'm not going to get into details on that. But yes, marketplace has definitely slowed down. Is this job what you wanted to be doing long term?

Yeah, actually, yes, this is, I love it. This is my career, just being in the electrical field in general. You know, I just, I love doing electrical work for sure. Well, in the meantime, is it possible for you to pick up some other work in order to kind of close that gap income-wise? The biggest issue with that is, you know, we work under a license, so I wouldn't be able to do work on the side without a license. Not electrical work, but you could drive over. Yeah. Yes. So, actually, I do pick up that work.

My schedule is a little bit varied you know um i can't get i wanted to get like a consistent you know after hours job but my schedule is so inconsistent you know i'm out maybe 12 13 hours a day sometimes what are you what are you making um on average take home a month is around $4,000 to $5,000 a month. And you were making double that before? Close. Wow. Okay. Probably about 30%. Okay. So here's the thing. My friend Henry Cloud wrote a book called Necessary Endings, and he says you need to end a relationship a process a job when you lose hope that there's any chance it's going to get better okay and so if i'm in your shoes i've got to decide how long am i willing to wait for this to turn before i need to call it a day and switch careers. And I don't know how long that is. How long do you want to give it before, you know,

at this rate versus the double rate that you were making before, before you're willing to do this? How long are you willing to ride this storm out to stay in this field? Let me help you. It's not five years. Yeah. It's not five years yeah it's it's not it's not three years right you don't want you don't be sitting in the same soup three years from today correct so just keep you know is it one year is it nine months is it the fall if it didn't fall but if we hadn't turned it by fall we're going to go look for something

is it one year this time next year? If it's not, we're going to hold my breath, hold my nose and fight through and work the extra job. The weird jobs on the side, just so I can stay in this field, hoping it's going to turn back. But at the point that I lose hope that it's going to turn back, I'm out of here. And you need to set yourself a date certain because that will relieve a lot of your anxiety the uncertainty of this could go on forever is runs down your spine and rests in your lower back and you know i gotta believe that there's other job opportunities that use a similar skill set that use some of the same you know things that you know how to do and enjoy doing.

So you might want to start researching that. But the screen says that you're behind on your debts. How much debt do you have? I am, without the mortgage, about $75,000 in debt. All right. So that's letting us know what Dave was just talking about, your necessary ending. That's got to come sooner than later. Because if you were sitting here debt-free and you just called in and said, hey, my income just got cut in half.

What should I do? You could extend that time period, but you've got a lot on the line here with $75,000 in debt. What are you over 75 on? A lot of dumb stuff. Super tax, as you call it. Yeah, what is it?

Credit cards that are maxed out. It's primarily a transition, just trying to keep everything afloat and how much your car payment how much your car debt my credit card no my car debt uh i have one car and it's about five thousand like no four thousand all right so your car is not your problem okay no so. So what is most of this debt? Credit cards. Oh. Credit cards and we did some dumb stuff with some Affirm stuff. Okay. But you're done with that now, right?

No, that ends in August. No, no, no. I'm saying you're done using Affirm. You're never clicking on easy payments again. 100%. Yes, I'm not. Let me affirm you that that was stupid. We're trying to work on the baby steps right now. Let me affirm you that affirm is stupid.

Here's what I want to say to you. You're going through something tough, but I'm hearing a lot of excuses. I'm hearing a lot of but and well. Well, see, the thing is, and I need you to understand that right now, you got to make a change right now. You got to change it. There are a lot of times where there's reasons that things are going wrong and things are not going well. But I want to challenge you to cut off that point because at a point, the reasons start becoming an excuse. And I don't want you to cross over to that excuse zone. So now's your chance to start making those choices. Start making those changes.

Like I said, research jobs that earn more, that use your same skill set. They're out there. They're there. Check out Ken's book, Paycheck to Purpose. Austin, can you give him that book? That might help him out to find something new for him. But look, this is your moment to change. No one's going to do it for you. No one's going to hand you a job. No one's going to come in and pay off this $75,000 of debt but you. Yeah, Warren Buffett says when the tide goes out, you can tell who is skinny dipping. So this lowered income has revealed that you were living chaotic and out of control, and now you get the opportunity to fix that. This is The Ramsey Show. Hey, you guys.

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CHM programs start as low as $98 a month. So learn more today and join at chministries.org slash budget. That's chministries.org slash budget. Well, our spring live events are kicking up and jam-packed and sold out everywhere, but we're going to tell you where you can come if you can still get a ticket. Building Wealth, we're going to be April the 24th in Salt Lake City, Utah, with Rachel Cruz, George Camel, Christina Ellis, and me. May 2nd, we'll be in Anaheim, California, with Dr. John Deloney, Ken Coleman, Christina Ellis, and me.

Jade, was that the first two that we did? And we've also brought back smart conference and we kicked it up a notch this is our first uh weekend version of smart conference uh friday afternoon we're going to do the ramsey show this show right here live we do it live on the glass anyway here but we're going to do it live from the ramsey event center the brand new ramsey event center from the stage and we're going to have a huge audience in there to do it live from the Ramsey Event Center, the brand-new Ramsey Event Center from the stage. And we're going to have a huge audience in there to do that. We've got other stuff planned through the afternoon.

We've got a neat time with the audience Friday evening. And, of course, some of our friends from Nashville are going to join us. We're in the music business here. And some names you'll recognize are going to come hang out with us, and we'll have a little Nashville moment. And then Saturday all day, Jade will be speaking, Dr. John Deloney, Ken Coleman, Rachel Cruz, George Camelme. We're going to go through everything from mental health to jobs to goal setting to just winning with your money and the details.

We're going to go into every part of your life. And this is the inaugural event, the very first event at the new Ramsey Event Center. I was up there today. We're looking at some items we're installing today. It's absolutely, I'm so proud of it. It's absolutely stellar. And we've announced Ken Coleman's career breakthrough events. They're going to be in Kansas City, April 20, Chicago, May 16, Atlanta, May 18, Dallas, Texas, May 23.

Oh, I forgot. The Smart Conference is April 14 and 15, one month from right now. That's right. And there's a handful of tickets left is all for that weekend event at Smart Conference. Ken's career breakthrough just went on sale. That's exciting. We've got the money and marriage event with Deloney and Rachel next fall. All of these things are at ramsey solutions.com slash events our events

lately have well for the last 12 months or so have been 100 sell out everywhere we go and so if you want tickets you need to get them to all of these things they're going quickly they always do juliana is with us she is in phoenix hi juliana how are you i'miana. How are you? Hi, I'm doing great. How are you? Better than I deserve. How can I help? Good. So my husband and I are just wondering if we should approach an HSA account more as savings or more as an investment based on where we are at the baby steps. Where are you at in the baby steps? We're four and six. We don't have any kids currently, but we'd like some in the future. Is the HSA above and beyond the 15% that you're investing into retirement? Yes. So we're, yeah, we're investing 15% in 401ks.

We want to at least get our max out of pocket in the HSA just to cover medical expenses, but we're not sure if we should keep contributing after that. Yeah. It's not going to matter that much in a given year. It will matter over a period of years. Yeah, I would keep doing the HSA as long as you're doing it in addition to the 15%. And once you get to a certain point, make sure you get with someone like a company called Health Equity is one we use to flip your HSA money into mutual funds once it gets to be substantial.

Because, see, the way the HSA is going to work is, as you know, the health insurance that's with it is a high deductible, but it's a low max out of pocket. And so what ends up happening with the Hsa is the hsa works best the math works best uh if you're very healthy or you have chronic uh chronic health problems okay like i've got a friend that's got crohn's disease and so he's constantly hitting his deductible and his max so the hsa with having the lower max is much better for him because his max out of pocket is less and in an annual basis and so even though the deductible is higher but he's always going to hit his deductible because he's always dealing with some kind of medical something and uh on the other hand you've got sharon and dave which uh

hadn't you know hadn't seen the inside of a hospital we don't know what it looks like we visited some people there once but that's all and so uh you know so what happens with us is we never even have a medical expense much less hit a deductible and so uh our HSA I started doing it when George W Bush put it into place the first time I've never touched it. Consequently, it's all in mutual funds, and it's several hundred thousand dollars because it's been a long time, and I don't need it. It's become another investment vehicle. So those are the two extremes, obviously, that can be there. But, yes, I would go ahead and do that at this stage.

I wouldn't go crazy with overfunding it or something. I'd rather you get your house paid off. But, yeah, definitely get it up to where you're covering your deducts and oh at least double that kick it on up there a little bit i mean get 20 30 000 bucks in there but but you don't need 300 000 in there not have paid off your house on the other side that's what i do yep you're doing that too that's what i'm doing i like having you know some people you have your three to six months of emergency funds but i liked having the deductible in the hsa so that it's just another thing that i don't have to touch now i would not do that if you're in baby step two or three facts yes that's if you don't have your

emergency fund in place you don't need to be putting a dime in an hsa that's correct yep you need to build your emergency fund and be debt free before you put money in an HSA. This is baby steps four, five, and six. So really, really good stuff there. Very well done. All right, our question of the day comes from Neighborly, your hub for home services. This company is incredible. If you need to make repairs or schedule routine maintenance, find local help for home improvement projects,

Neighborly is your source for reliable home service providers in your area things like mr electric mr ruder molly made names that you recognize like that go to neighborly.com and you can start your search to get some help with things around the house all right today's question comes from lucas in the ramsey baby steps community you can find that on facebook he says i just recently got engaged. My fiance is bringing $96,000 of student loan debt into the relationship. I am debt-free and I've been saving up to buy a home.

So far, I have $93,000 saved. I know that once we're married, her debt is also my debt. So I'm wondering, do I take the money I have saved for a house to almost pay off her student loans and then get back to saving for a house? Or do I buy a house and then get intense to pay off the student loans? Oh boy. Okay, Lucas. This is hard. It's hard, but here's what I would do if I were in your shoes. This is your fiance. It's not your girlfriend. So the plan is that you're going to get married and you know that that's coming around the bend. What I would do is keep this money, this $93,000 set aside. The moment you put a ring on

it, the moment you say I do, you guys are essentially in baby step two. Well, baby step one, you'll keep a thousand of this for your $1,000 saved and you'll put the other 92,000 on her student loans. And then you guys will pay those off. You'll save up three to six months of expenses. And then and only then will you go to Baby Step 3B and start saving for home down payment. And I know when I said that you got a lump in your throat, you might have lost your lunch a little bit because you've been saving for a long time. But that's the story of, that's the glory of love, Dave. It's the cost of putting a girl in it okay well i mean in this case i should say putting this girl in it yeah i feel his pain he you know

this is this is who you brought this is um yeah it you know when you look back on this a thousand hundred years from now 500 years from now 20 minutes from now you won't think anything about it but at this moment at the moment you write that check right after you get married you're gonna be going i'm gonna kill you that that that's the song some somebody knew somebody knew my reference you got to give a little take a little let your poor heart break a little that's the story of that's the glory of love there you go so his heart is his heart is breaking because of this and uh i feel for you lucas but that is the right thing to do just go ahead and don't don't get the house first even though you're like man i've been saving because if you get the house first you're

going to get married and then you guys are going to be in debt, and it's not going to be fun living there in a can office debt. I got to tell you, this is also going to make you triple check in your pre-marriage counseling that this lady's going to swear she's going to never borrow money again. Yes. Because if she thinks she's going to go back in debt after you do this, we got other problems. Mm-hmm. We got other problems. So, I mean, she's got to go. We're never going to, I'm never even going to walk near a credit card.

I'm not going to walk near a car lot with a car payment. We're never going to ask you to go into debt ever. If she can't make that kind of a pledge and make you believe it, you got other issues. Yeah. Jade Warshaw, Ramsey Personality, is my co-host today. Thank you for joining us, America. This is The Ramsey Show. In the lobby of Ramsey Solutions on the debt-free stage, Dia is with us.

Hey, girl. How are you? I'm good. It's Deja. Deja. Like Deja Vu. Oh, okay. I'm sorry.

Thank you for correcting me because I would have messed it up for the next 15 minutes. Okay. Okay. Where do you live? I live in Chicago, Southside. Cool. Welcome to Nashville. Good to have you. Thank you.

How much debt have you paid off? 80K. All right. All right. Good for you. And how long did this take? It took me two years. It would have took me a little bit less, but I kept starting over and starting back again. So yeah, two years. And what was your income during that two years? 50K.

Okay. What do you do for a living? Right now, I work for Uber. I actually work for their headquarters and sales. But back then, when I was paying off my debt, I was working in retail. I was a store manager for Foot Locker. Okay. Good for you. Okay. So tell me about this. Tell me what got you started on this two years ago. And then while you're at it, go ahead and tell me about the starting over part. Yes. So I actually follow Asia Dang. She actually came down here and she was on the podcast as well. And once I graduated college, I was just like, oh, my God, I have so much debt. I had 13 credit cards, Dave, 13, just because I just did not know anything about money. I was not taught how to manage money.

I was just like, oh, credit card. You gave me this amount. That's free money. But I never really understood interest in anything like that. And that part where you have to pay it back. Yeah, absolutely. I was like, wow, I got to pay this back. And that part where you have to pay it back. Yeah, absolutely. I was like, wow, I got to pay this back? I thought you were just trying to give it to me.

But yeah, so I would pay off something. I would congratulate myself. And then I would go back into it just because I was like, oh, these jeans or these shoes. I really want them. And I just, it was just back and forth, back and forth. And then watched Asia. She paid off 200K in two years. For those of you who don't know, she became an influencer while doing her debt-free journey

and then following our stuff and then came down here and did our debt-free scream. I didn't know. She's like a star. Yeah, absolutely. And then she came in and I'm like, I just was in the presence of royalty and I didn't know it. Yes, yes. So yeah, she's a big deal.

So shout out to Asia for that. She actually put me on to you and then I just listened to the podcast every day going to work um I would like just turn on the podcast and I would just hear all these people saying like oh I paid off my house I paid off this I paid off that and a lot of the people that I was surrounded by um just was not doing the same things that, you know, you were preaching and coming from a low income family, strictly minorities, it was nobody was talking about it. It was just like, why would you pay off debt? You're going to live like literally people would tell me you're going to die in debt. So why are you trying to pay it off? So just hearing that I was just like, oh, dang. But I finally did it, you know, and I actually paid off my last bit of debt. It was my last

student loan. People were telling me like, don't don't do it. You're gonna the government is going to give you the money back. And I'm like, I am not about to wait on this government. Like, I'm just not I'm just not about to wait on them. So I paid off my last student loan on Thanksgiving Day. And I was just, I was just so grateful. It didn't hit me until I called Don, and I was just like, I would like to do my debt-free scream. And then I cried. I love it. Yeah.

Very good. Thank you. Good for you. I'm proud of you. Thank you. So now I get the on and off again, off and on and off again. And I really appreciate you telling that story because a lot of times people, that happens, and then when they get on the debt-free stage,

they don't want to tell that part. And they really did do that um but uh so i appreciate your uh authenticity on that the did you reach a point though that you were saying now i'm just on not not gonna be tempted by these jeans again i'm done i gotta do this yeah absolutely it was so my original debt when I first first started was 40 40k but I actually added another 40k in debt because I was just adding credit cards I was just doing so much dumb stuff and I just did not have the people the right people in my corner to like motivate me and keep me on track and then when I realized like you just got another 40k in debt and you don't even have a house you don't even have an apartment you know what I'm saying

like you're still living at home with your mom and you're 25 years old and it was just embarrassing and I was just like you know what this has got to stop um there it is and yeah I just it's the behavior it's the behavior change so you were doing the right things with money but you hadn't changed your your full behavior everybody knows pay off your debt do this but you had to get to the behavior part love it yeah whoo so what was what was the the the how was what was your response to all the haters because i know there are folks out there on the hater aid like oh you know yeah you know why are you paying off your student loans how did you respond to that because that's everywhere right now by by the way.

It was coming from my family. It was coming from my family. You know, family has a weird way of just like saying something that'll just make you change your entire mind. And they weren't doing it. So I was like, you know what? I'm just going to be the first in my family to do this. I was the first in my family to go to college.

I was the first in my family to, you know, pledge a sorority. I was the first in my family to do all these things. I'm going to be the first in my family to go to college. I was the first in my family to, you know, pledge a sorority. I was the first in my family to do all these things. I want to be the first in my family to be debt free. And then I'll come back and I'll, you know, I'll get, I'll get my mom, I'll get my sisters, you know, I'll get my brothers and then we'll get all on track. So I think it was just trying to block it out and just listen to the podcast. Truly like the podcast was the, my best friend. And then also praying to god because lord knows i have been i literally was just horrible with money so it was just tuning it out and just keeping going and then once i highlighted everything off i was just like you

know what you're that girl you did it you did it wow i bet your family's proud of you now i bet now they're wondering how did you do it yeah absolutely, absolutely. That's exciting. That's exciting. Good for you. Well done. Very well done. The power of your family of origin, number one, the neighborhood you grew up in, me too. The power of that and the power of the people you currently decide to run around with that you make the people that are influencing you um you you speak like them you read the same books they do you develop the same values uh you uh even you'll even adjust your accent to fit and um uh it's human nature. Yeah. Be not deceived. Deceitful company corrupts good habits,

scripture says. And so when you hang out with deceitful company, when you hang out with people who are doing the opposite of what you want to do, it's very difficult to do. You brought that up three or four times as you were talking about this. And so it's just, but it highlights it.

It's very, very important. You've got to put new inputs into your brain. You've got to put new inputs into your brain. You've got to put new things into your brain to get the junk out. And I've got a good friend that grew up in really, really rough circumstances, and he's become very wealthy, but he said, you know, getting out of the hood was easier than getting the hood out of me. And that's a saying, what we're talking about. I mean, mean you got these tapes that play inside of us from the way we grew up you know people like us you know i always heard little man can't get ahead you always heard well

you're gonna die with that you know and these are all these they don't mean to be negative but they just like eeyore is their spiritual animal yeah they just don't know they say what they know yeah that's right yeah that's all they know and it's just but now they gonna learn something different because of you yeah you're in change you're in broke the chains yes changing my family tree yes well done very good up down or sideways it's good good with me on that tree however you want to get at it i like it very well done i'm proud of you thank you good work good work congratulations all right now when someone asks with all you've been through and on again off again but finally on what is the key to getting out of debt um i would probably say the budget for sure Making sure that you actually know what you owe.

Now that I'm like helping, I actually have my own business now. It's called Budget Boss Life. And I'm helping young minority students who are in college and going to college, helping them to know exactly what you owe and taking it from there. I feel like if you don't know, if you're too scared to look, then you're not going to ever know, you know, and it's just going to keep building. I'm going to give you a case of Total Money Makeover books. Yes, I need that. And we'll ship them to you so you don't have to carry them on the plane. But we're also going to give you the Baby Steps Millionaires book,

the Total Money Makeover book, the Natural Peace University as your gift for being here. But we're going to help you with the next 26, I think, or 24 is in a case, something like that. We'll give you a case of them, and we'll get your shipping information and send it out to you. Thank you. Congratulations.

All right, Deja, way to go from Chicago. $80,000 paid off in two years, making $50K. Count it down. Let's hear a debt-free scream. Three, two, one. I'm debt-free! Yeah! That's how it's done.

Woo! Love it! This is The Ramsey Show. Our scripture of the day, John 8, 12. Jesus spoke to the people once more and said, I am the light of the world. If you follow me, you won't have to walk in darkness because you will have the light that leads to life. Corrie Ten Boom said,

Now I know in my experience that Jesus' light is stronger than the biggest darkness. And she had that experience without a doubt. Open phones at 888-825-5225. Sherry is in Detroit, Michigan. Hi, Sherry. Welcome to the Ramsey Show. Hi.

Thank you very much. Thank you. How can we help? So my husband and I, we've been following you for probably five or six years of following the baby steps, and it's allowed us to get to step six pretty quickly. So we're now in a position recently where we could finish paying off our mortgage, or we just refinanced about two and a half years ago for two and a half percent. We have a really low mortgage rate. What made you decide that following us was not a good idea after you've been following us well nothing i just so our families like we you know both

come from families like we're without money we don't know anyone that has money if we are not in a position i know you have it i know but you followed us all the way through until you got here. Well, until, you know, we have a lot of people talking to us saying, hey, well, you know. You followed us and did everything against what everyone says to do and did what we said to do until you got here. You understand? Yeah. Yeah. said to do until you got here you follow you understand yeah yeah and now suddenly now suddenly we we don't know what we're doing i'm picking on you sherry pay off your house girl okay that's you know just the only thing you know we keep going back and forth

That our mortgage rate is so low And we get something returned greater I know And you're going to stand out the rest of your life And you're going to be normal like all those people That you were doing Stupid stuff Before

Okay I think this is what I needed to hear Get out of debt Finish the baby steps. Okay. Don't get to baby step six and turn left. See it through. And when you're debt-free, 100% house and everything,

you'll have control of your most powerful wealth-building tool. You're going to have a level of financial peace that you've never had in your entire life and maybe that none of your friends have ever had and maybe that your family has never had. You're 100% debt-free at at that point how old are you uh we are 35 and 36 oh man and so you're going to be multi-millionaires if you just take your house payment and the old payments you used to have and start investing those how much is left on the house about 150 oh yeah come on now come on and get it And then when you're done, you'll be

able to invest to your heart's content. And be unreasonably generous too. Yeah. Yeah. Don't quit now. You're almost there. Don't give up at the end. You know, almost to the end. And then all of a sudden, two and a half percent sounds like a good idea to stay in debt. A lot of people do that. They get through the hard part of the race, and then the last 10% is there, and they quit. Don't do it. Kelsey's in Wichita, Kansas. Hi, Kelsey. How are you?

Hi, I'm great. I'm super excited to talk to you guys. You too. How can we help? So my husband and I are in Baby Step 2. We have our $1,000 emergency fund. We are in the process of trying to get rid of our stupid toys that we don't need. And so we have a travel trailer that we currently owe about $43,000 on.

We have an outright buy offer from a dealership for $33,000, so about $10,000 less than we owe. However, and I can take out a personal loan to cover that difference, but if I do that, the interest on it is going to be 10.75%, and it's on a 58-month payoff for $250 a month. You're not going to be in it for 58 months, though. It'll be like four or five months to pay it off. Yeah.

So you're not even going to pay 5%. Right. So my question was, though. Six months of a 10.5% annual rate is 5%. True. Yeah. Yeah. The other option that we had is there's another dealership that will consign it.

Nope. No. You would go ahead and go get rid of it. Consign it as you still own it, and you hope they sell it before they sell one of their own off the lot. Right. No, thank you. Now I have to go tell my husband he was right. I'm sorry about that part but um yeah here's the thing thank you here's the thing the beautiful part about this let's walk through here why am i going there so fast all right i like ten thousand

dollars in debt a lot more than i like forty thousand dollars yep all right i like getting rid of a camper which goes down about as fast or faster than anything else with wheels if you screw around with this thing sitting on the consignment lot for 10 months it might go down another ten thousand dollars right and we can get rid of it and then downgrade our truck that we don't need anymore to pull it stopped the bleeding we've stopped the bleeding it's've stopped the bleeding. It's done. It's over. The story is in the rearview mirror. Now we've just got to sweep up the last 10,000,

and that is a fixed amount that is not going anywhere. Got it. We've locked in our losses. They're not going to get worse. The story's not going to drag out. It's over. Now kill the 10,000 000 bucks and it's really over right that's why i went there so fast got it just pay the stupid tax and be done yeah

and actually what i've learned to tell myself is i'm not even paying the stupid tax there i'm just admitting it because i've already paid it when the thing went down in value true that for sure yeah for sure and so yeah i've already i've already made the mistake all i'm doing is admitting it when i sell it so that's powerful well done yeah they're willing to sell off some things to get this done that's exciting our stupid toys she said yep and uh man people got some stupid toys yeah and listen we're not against toys we're against stupid toys at the wrong time what's a stupid toy stupid toys one you have debt on listen i one guy told me he said i that my bass boat and i'm like dude your bass boat is 550

a month and i made him sit down we're doing a small group at a financial peace university i made him sit down and add up how many bass he caught a year and what the average pounds were and we divided out that those bass were costing him something like 160 bucks a pound by the time he got him home that's hilarious you know dude this is freaking beluga caviar here it's just like this is not bass that is hilarious so it's not don't tell me you're feeding your family please okay please don't tell me that all right it's nothing wrong with a bass boat i don't have a bass boat but i got a couple master crafts and i got sea dues and all this other crap but i pay cash for them and they're going down in value yeah and

they're the top of the line best of everything and i love them and they're toys yeah and they're going down in value and they're the top of the line best of everything and i love them and they're toys yeah and they're a small percentage of my world so stupid toys are toys that are a large percentage of your world uh or that you have payments on or both right and i have done stupid toys as many as kelsey probably um or maybe even more but i've also done toys the right way and then they don't bother me. So go further into that, because we know what that means when it comes to cars, right? We don't pay cash for a brand new car until we're a millionaire. Right.

And then there's people who want to get boats and sea dues and campers. So explain to the people what's too much and when they can do all that and how they can do all that without getting ridiculous? I use a couple of rules. Rule number one I use is the total of everything you own with motors and wheels. Campers, wheels, no motor. Boats, motors, no wheels, right? All that. But motors or wheels, all those things go down in value.

And the total of all those things you own should never be more than half your annual income. It should be a small percentage of your world. The second rule I use is if I set fire to it and it had no insurance, does it change my life financially? Am I financially devastated because the item, I just completely blew that amount of money? Because in essence, you're blowing that amount of money. It needs to be like a friend of mine is a billionaire, and he bought like a $400,000 car. For him buying that, it's like most of us buying a biscuit. Right.

Right? So it needs to be a non-issue in the mathematics. He could burn that car to the ground once a week, and it won't change his life. All right? So that's the point. It's a non-issue. But people buying crap to make themselves look good or to be big dogs, they're always

the broke people. Right. I was. I'm driving a Jaguar, and all the money put gas in it, you know, back when I was broke. Yeah. And so we've all done that stuff. So that's where you break the cycle. Jade Warshaw, good show today.

Same to you. Good job, Austin, Ben, James, Zach, and Andrew in the booth, the booth dudes that make this happen. That puts us out of the Ramsey Show in the books. We'll 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. Hey, what's up, guys? It's Jade. Christ Jesus.