The Ramsey Show - App - No More Living At Mommy's House! (Hour 3)

Episode Date: July 13, 2023

George Kamel & John Delony answer your questions and discuss:  What to do when you feel called to ministry but can't pay your bills, from the blog: Ministering to the World - Unhindered Bank of America was fined over $100 million dollars for shady business that hurt consumers, What to know when deciding if you should sell your current home before building a new one, from the blog: How to Buy and Sell a Home at the Same Time If you should live with family to save money when moving or let family member pay your mortgage, How to take control of your money and stop frivolous spending, from the blog: How to Change Your Spending Habits Have a question for the show? Call 888-825-5225 Weekdays from 2-5pm ET Here's an EveryDollar deal just for our listeners: get a 14-day free trial PLUS $15 off your first year of premium. Click the link below and start budgeting today! www.everydollar.com/george Want a plan for your money? Find out where to start: https://bit.ly/3cEP4n6 Listen to all The Ramsey Network podcasts: https://bit.ly/3GxiXm6 Interested in advertising on The Ramsey Show? https://ter.li/s64ye3 Ramsey Solutions Privacy Policy

Девочка-пай Live from the headquarters of Ramsey Solutions, broadcasting from the Paws Moving and Storage Studio, it's The Ramsey Show, where we help people build wealth, do work that they love, and create amazing relationships. I'm George Campbell, joined by my good friend, Dr. John Deloney, and we are pumped to take your call. 888-825-5225. If you need a little help, a little advice to take the right next step with your life, your money, your relationships, your mental health, whatever it is, we want to attempt to do that for you today. Daniel kicks us off in San Jose.

Daniel, welcome to the show. Hey, guys. Thanks for that for you today. Daniel kicks us off in San Jose. Daniel, welcome to the show. Hey, guys. Thanks for taking my call today. Sure. How can we help? Yeah, so I'm a worship and media director at a local church here, and my wife and I are expecting our first child. Congrats. Thank you. Yeah, she has had some complications and we've experienced some pretty big financial hits this year. So she is out of work until she's due. So my question is, I'm definitely called into the ministry. However, with these financial hits, is it worth us, is it worth myself going and looking for another job and leaving the ministry, looking for part-time? We just really don't know what steps to take, especially when we feel called in the ministry.

When you say, I feel called, what does that mean? I believe the Lord has designed me to be a worshiper and a worship leader. And that's my role at the church, is to lead people into worship and communion with Him. Okay. What about what's your calling at home? How would you describe that? A husband and soon-to-be father and provider for the home. Okay. So at some level, if we distill it all the way down,

there's, there's a conflict between those two callings that you feel, right? Yep. Yep. So what I would suggest is this, um, if I was to label a call that I had in my life,

I would say it's to help people have a little bit better day after they've interacted with me than before. And when I was younger, I attached a call to a job, to a title. And I started realizing that ministry is done outside of a church just as well as it's done and as much as it's done inside of a church. In fact, it's everywhere. It's how I treat the waitress. It's how I honor my wife and my kids. It's how I take care of my friend George when he screws something up.

It's a way of being. And so my challenge for you would be, A, ask yourself, and this is for you and your theological mind to sit down and work through, is God calling you to a job over taking care of your wife and kids in this season? Because the money you're making at this job is not paying your bills. Correct. job is not paying your bills. Or can you be a person who brings people closer together, who connects people, whether you work at Burger King or whether you work on a stage at a church or whether you work changing tires at a local whatever, or you're a counselor, can your call

expand to, I'm a person who brings people together. That's what I do. And if I, somebody hands me a guitar and puts me on a stage, that's what I do it. If somebody, you know, hands me a wrench, I'm going to turn it. I'm going to make sure that guy and his family have a safe car to go on their vacation. I'm going to bring that family together. You see what I'm saying? Yeah. And so when I started looking for my quote unquote call, which is a whole other conversation, here's what I think I've spent 25 years trying to be good at this thing, like learning the craft of this thing,

whether it's on the radio, whether Dave fires me tomorrow and I go do it in a counseling office or I go back to be a professor, whatever it is, I just am going to continue to want people to be a little more peaceful after they meet with me, right?

I think that the idea of call expands much beyond job description, right? But yeah, it's a hard hard decision i also think this man if you choose to step away for a season a it's not forever and b grieve it you're gonna miss it you get to play music every week right you get to write music and sit with hurting people like that that's something that you love to do right yeah yeah so tactically daniel i see there's a few options here number one i think we need to go to church leadership and tell them honestly your situation not with any expectation but just to let them know here hey here's what's going on i don't want to leave this place but right now i need to

go pay some bills and i'm looking into some part-time jobs. And that's option one is that you work there full-time and you take on a part-time job, which could affect your family because you're gone and your wife is going through it right now. Or you leave the ministry, maybe you do that part-time as a volunteer at the church and you work full-time in a different role right now until you guys get some financial stability. And then maybe one day the role opens back up or it's still there and you go back to doing what you love. That's how I see it. I always like to give myself options, even if I don't love all of them. Yeah, that's good. And I'll also pass this along again. I'm sure I'll get an earful of other people's theology, but I had a mentor of mine one time.

I was young. I was in my 20s, and I was back and forth and trying to find what God was asking me to do here and here and here, and it's all over the place. And he said something that was pretty transformative for me, and he said, Has it ever occurred to you that maybe God doesn't care what you do? He just cares who you are on the way it is

to wherever it is you're going. And that was a significant shift for me because I think of the people all over the earth who are in hellacious situations and ask myself, are they being called to a three-car garage? Are they being called to be a person of honor and integrity and uphold their whatever their religious values are in the face of great

oppression in the face of in the face of great fear in the face of god knows what right and so this idea of call becomes a much more expansive thing than um yeah i have to work at this building at this job. That's just my thoughts, man. I could be way out to lunch. One man's opinion. There's people pulling over, screaming and yelling all over America right now. That guy's an idiot. Heretic.

But how does that sit with you, man? That's great. What are you leaning towards? That's great. That's great. Thanks, guys. If we hang up, what are you leaning towards that's great that's great thanks guys if you we hang up what are you gonna go do you know i actually uh have a meeting plan to talk to our leadership um but i i do feel that we need to we need to get some more income coming in cool do you have another option like if you had to go get a new job tomorrow, what would it be? You know, I don't really have that lined up, but I'm willing to go flip burgers if that's what it means. I knew you would. Hang on the line. I'm

going to send you my buddy Ken Coleman, his Get Clear assessment that can give you some options to say, okay, here's what I'm really good at. Here's what I love doing. Here's what I think I've been called to do. And here are a million different places where I might be able to do those very things that I've never even thought of. Hang on the line here. We'll get it sent over to you on us. Blessings to you, brother. Congratulations on this new baby. I'm George Campbell. He's Dr. John Deloney. This is The Ramsey Show. Open phones at 888-825-5225. Well, John, a piece of news crossed our desk, and we are not men of the news, but we report news that I think is eye-opening to our viewers and listeners

and helps them make good choices with their money, which is why I share this article from consumerfinance.gov. CFPB takes action against Bank of America for illegally charging junk fees, withholding credit card rewards, and opening fake accounts. And the CFPB, which is the Consumer Financial Protection Bureau, if you're not in with the cool kids, they ordered Bank of America to pay more than $100 million to customers for systematically double dipping on fees imposed on them with insufficient funds in their account, withholding those reward bonuses, which they were promised to, and misappropriating sensitive personal information in order to open accounts without the customer's

authorization or knowledge. Wow. This is dark stuff. I mean, this is some Wells Fargo level stuff. And it doesn't surprise me that it's from Bank of America, which is probably the next worst bank out there. You said that so dramatically. It's Wells Fargo. Wells Fargo. Oh my gosh.

This is sad. I think until the banking industry decides to align incentives across the board right and what i mean by that is we're talking about it off air if person x has an incentive and they have no skin in the game down the road they're going to do whatever they can to meet their incentive in their local market right and on and on and on it goes down the road until you get an entire culture where cutting corners making numbers for the end of the the quarterly um returns it just becomes a huge mess oh man this is wild so to fully understand what happened there it goes yeah sales to meet to meet

now disbanded sales so here's here's how it happened explain this so you have a local teller who is told if you get this many open accounts then you get a bonus that person doesn't have to deal with any of the accounts doesn't manage the account that's my job i will get you 10 and then it gets to the end of the month and somebody comes in and opens a checking account and there's no skin off anybody's nose if he goes ahead and just opens a savings account and a money market account as well. And I get to book three. I got three. Well, then let's say that savings account has a minimum and then this person gets a bill, right, for $10 because you didn't have the minimum of an account you didn't open and then the next teller opens it and goes well you opened it on this date and it just snowballs

that way right and that person gets his gets his thing then the person collecting overdraft fees gets theirs and it rolls all the way up it's the same as back in the mortgage the the mortgage back securities issue the bank who made the loan to that mortgage didn't have to hold the payoff. They sold it right away. So they had no... They didn't care. The only incentive was to make the loan,

not, can this guy actually pay this loan back someday? I don't care about that. I'm selling the sucker. I just need to make the loan today. And if you keep passing the buck, passing the buck, and everybody doesn't have skin in the game, you get these big, huge collapses

when the whole thing falls over, man. Or you get big, systematic, cultural schemes like this kind of nonsense, man. That's pretty wild that the employees illegally applied for and enrolled consumers in credit card accounts without their knowledge or authorization. They, in some cases,

illegally used or obtained consumers' credit reports without their permission to complete applications. So the customer hadn't even completed the application. Like, you have an account now. Here's your line of credit. Goodness gracious, that's frightening. And this is not the first time they've got a little slap on the wrist to the tune of a few million. In 2014, the CFPB ordered Bank of America to pay $727 million in redress to its victims for illegal credit card practices. In May of 2022, they had

to pay $10 million in a civil penalty over unlawful garnishments. And later in 2022, because they didn't learn their lesson, another $225 million and required it to pay hundreds of millions in dollars in redress to consumers for botched disbursement of state unemployment benefits at the height of COVID-19. Well, and it makes me think this. The bank has, as of March 31st, $2.4 trillion in consolidated assets and $1.9 trillion in domestic deposits, right? So that's a four and a half-ish trillion dollar bank. So these fines, you're like $700 million.

You're like, eh. Cool, where do I send the check? Right. And again, these little slap on the wrist, $100 million, which sounds like the end of time for you and me is like, okay, that's the price of doing business when you're making $4 trillion. Yeah. So the lesson learned here, number one, don't do business with Wells Fargo or Bank of America or any of these big, scummy companies. We love local community banks, credit unions. That's a great place to do your banking locally.

And another piece of this is don't play with debt because they are snakes and they will get you. And I have a healthy distrust of banks because their name is stamped all over stadiums and the biggest buildings downtown. And your name isn't. And that tells me they're winning. So when they're marketing to you with all these sweet commercials and there's like smiling families, and they're telling you how they can get you a great deal on a loan, run away. It is a horror movie waiting to happen.

I don't know. Any other advice there, John, when it comes to banking? This is just, it's just sad. And we've been talking trash about these folks for years now. No, it's just until, until. But switching your bank

is so much, people are like, eh, it's too much work. It's worth the work to get out from under these guys. This,

this just reminds me of, you know, the, the industry that I love, higher ed, until people get serious about making it right, it's going to continue

to help some people and really hurt other people right, it's going to continue to help some people and really hurt other people. And it's just going to, man. It's one of those things, man, I wish we could just get in there and solve the problem before it becomes so catastrophic that you have to rebuild something out of ash. It doesn't have to be that way, but here we are.

There we go. All right, let's go to the phones. Michael's up next in Huntsville, Alabama. Michael, welcome to the show. Hey, guys, how's it going? Great. Thank you for taking my call. Sure. What's going on with you? Hey, well, I'll try to get straight to my point. A lot came available in a neighborhood that my wife and I are, is highly desirable for us, and we're trying to figure out if we want to sell our current residence, our house, and start a construction loan and temporarily move into an apartment while the house is being built,

and then once the house is built, just have the primary mortgage on the new property and the new lot. Okay, sounds reasonable so far. Do you guys have the money to do all this? Well, we would definitely have to sell our house to start the construction loan. Okay. So that's a big move, but what would the net profit be? If you sold the house, what would you get after fees and paying off the mortgage? We would probably get around $200,000 out of my house in net profit. We could sell it for about $300,000 and we owe about $80,000 on it right now. Cool. So you have $200,000 to put down. What would that mean for your construction loan and the primary mortgage later on?

Well, the primary mortgage loan, we're looking around probably around a $400,000 house, give or take. We have to buy the lot um the lot's about 90 000 uh so you're talking half a million now yes about about 500 000 and give or take in total yes okay and you have 200 of that yes we have 200 of that so that would leave you with about a 300 000 mortgage once this is all said and done yep uh, about a $300,000 mortgage once we get everything finalized after we've stayed in an apartment for, I guess, a year or so. And what's your income? Our income right now, gross, is about $170,000. Awesome. $165,000. Great income. Okay, so what is your concern in all of this? Well, we're just concerned with the market,

you know, with the interest rates and how high it is. We tried to buy a house about a year ago, and it kind of fell through because we were just kind of nervous about getting out and selling our house and then getting a higher interest rate with the way the market's going. Because we bought our house in 2019 right before all the craziness happened. And we're just kind of scared to, I guess, jump off into the deep end, you know what I mean? Yeah. I mean, I don't want you to make this huge decision based off of the interest rate being higher or lower. I want you to make the decision because you're ready for it financially and it's what you guys really want to do. Okay. So I would jump onto our mortgage calculator at ramseysolutions.com. You're probably looking at, I want you to do a 15-year fix where the payment's no more than a

quarter of your take-home pay. I think you guys can get there with this income if that's stable and this could be a great move for you. It's obviously a lot of work. You're going to sell the thing. You got to go rent. It's going to take more time than you think. It's going to be more expensive than you think, But it doesn't sound unreasonable. John, did I miss anything? All right, we did it. We solved at least one problem today right here on The Ramsey Show. This is The Ramsey Show.

I'm George Camel, joined by Dr. John Deloney. We are grateful you are joining us right now. And if you're enjoying the show, I would ask you to do one thing. It's a free show. What I'm asking you to do is completely free, and it's easy, it's quick, and that is to share the show. Please consider subscribing. Hit the follow button wherever you're hanging out with us.

Leave a review, and especially share this with people in your life that you love, people that you want to see win in every area, whether that's money, relationships, mental health, their career. That's what this show is all about. And I was talking to a fan that was out there visiting, John. He was like, I don't watch the news anymore. I just watch the Ramsey show and my life is just better. There's no question about that. We don't do a lot of if it bleeds, it leads kind of headlines around here.

The callers call in with their questions and we try to help. There's plenty of blood on the show as is. Yeah, we don't need a lot of if it bleeds, it leads kind of headlines around here. The callers call in with their questions, and we try to help. There's plenty of blood on the show as is. Yeah, we don't need any more of that. And so we appreciate all of you who have shared this with people, and you never know what impact you're going to have. That one episode could spark something in their life to where transformation happens, and we're grateful for all of that. So thank you, thank you, thank you.

Let's go to Austin in Dallas up next. Austin, welcome to the show. Hey, thanks for taking my call guys. Sure. What's going on? Yeah. So, um, I don't know if it's pretty simple or not, but, um, I have a mortgage. Uh, it started, it was a $382,000 property and I put 20% down. So there's about 300 left on the mortgage. And I have a family member that could help me pay off that mortgage. And so I was trying to figure out if that's a good idea or not, and if that would be the best use of their money. But if so, what would be the best fair way to go about doing that? That was the vaguest way you could have described that.

Be a little more specific. Yeah, what was this conversation like? Did they bring this up? Did you bring it up? Is this a gift? Is it your dad? Is it some weird cousin that's going to expect stuff? Tell us more.

No, it would be one of my parents, my mom, and, you know, just collectively my parents, and then they would, she just, my mom had some savings, and she's looking to do something with that savings, but she's not quite sure. We must come from different households because some savings, and she has an extra $300,000 laying around is a very different scenario. That's amazing. She's done very well. Yeah, she's put in a lot of work over a long period of time. Is this a large part of her world and her, is this retirement? Where

is the savings coming from and what would she use it on instead of this? I'm not quite sure what, it would be a significant portion of her, you know, total wealth, right? But at least, I mean, somewhere, I'm not quite sure. How did this come up, man? She and I were just talking about it, and she knows that I have a mortgage. I just got the house not too long ago. And she would use her funds to either purchase another rental property, purchase a home or a property, and try to have her money grow that way.

Here's why I don't like this. I don't like it because you don't have peace in your spirit about it. There's something about this that is giving you pause, whether you're wondering if mom actually has this money, whether sometimes parents give gifts and it's their way of putting hooks deeper in their kids, or you don't want to be responsible for something down the road. I don't know what it is, but you don't have peace in your spirit about this. I got no problem with parents who want

to surprise their kids and pay off their house. I that's amazing i would love to be in that financial position to do that for my kids someday um but that doesn't sound like the case here it would be just more is that the best use of her money you don't you don't like this sounds weird i don't think you get a vote in how she uses her money. Right. And truthfully, the better use of the money for her without you being involved is she goes and invests this money in a mutual fund and it becomes her retirement plan. So I don't think it's about, is this the best use? If this is just a gift out of her heart and she says, I have this money, it's not going to affect my retirement. It's not going to affect my financial world. I just want to bless you with it that's amazing but I don't know that that's the case here

and that's the piece that gives us pause right well I think that I would be treated at the very least as like a gift so I'd want to return that to her over a period of time see that's what worries me

a gift doesn't if John gives me a gift this is a big old loan that she wants an ROI on just say no thank you mom I love you too much I'd walk away yeah or it's hey remember that time I paid off your mortgage a big old loan that she wants an ROI on. Just say, no, thank you, mom. I love you too much. I'd walk away. Yeah. Or it's, hey, remember that time I paid off your mortgage? Now take care of me for the rest of my life because I don't have any retirement and I'm broke. The way you just

said that put the puzzle piece together for me. It sounds like she's going to go get a rental property and expect cash back or she's going to pay your mortgage off. And instead of you paying your mortgage to the mortgage company, you're going to pay mom, right? Or when you sell it, she goes, okay, I'd like my $300 now because I kind of need it. I'd love to get a rental property with it. And you go, whoa, I thought that was my money because it was a gift. Yeah.

I think I'd be totally fine with that, though, because I think that that would be fair, right? You don't know what the future holds. No, because then it's just a big, long loan. It's just a loan with no interest. Right, and that's where the question like what is the best and most fair way to handle it would be but not handling it all might be the solution i i'm telling you what i would do in my house i would say thank you so much for the offer it means the world to me um i want to be all growed up and so i'm going to go

through the process and do this myself. And if I've got total peace in my spirit about something, then I'm all in, but you don't have that. I don't have that for you. And it sounds like there's going to be some strings attached to this. That's just going to muddy the relationship between a father. I mean, a son and his mother and man, let's keep that as, as, as pure as possible. It's one of the most important relationships you'll ever have. Well said. Retweet. Thanks for the call, Austin. Zach is up next in Kansas City.

Zach, welcome to The Ramsey Show. Hey, George and John. Thanks for taking my call. Yeah. What's up, man? Well, we're new to Financial Peace University. My wife and I, we just started our classes this week. Awesome. We've got our budget plan in place and all that.

We've got a two-year-old son and a daughter on the way. We're exiting the Army pretty soon after seven years and traveling back to St. Louis to be a part of a family business. And we have other entrepreneurships we do as well. But we have the option to live with my in-laws until we find a house or take on a mortgage. But I'd like to try and pay cash for a piece of property and then build or pay for it as we go and as we can afford it. Currently, we don't have any debt and almost 50 grand in the bank. But it's going to put some stress on my in-laws, I'm sure. They love us and they're grandkids and they're willing to house us

until we're ready to move somewhere. And with the current housing situation, I'm hesitant to buy a home. I just want to see what you all thought of it. So did they invite you or did you ask them, hey, we're exiting the military, would you guys be cool with us living with you for a while? Yeah, we had a family sit-down discussion. And, you know, as a father and a provider for my family, it's kind of hard for me to be willing to live with someone like I should be able to provide, right?

I should be able to afford to home, you know, my family and stuff. So it's kind of, I'd like to be able to just go and buy a house, but I don't want to take on a mortgage if I don't have to. And then I can potentially set us up for real financial success, you know? If you're still married. If you're still married after living with your in-laws and your little kids. Based on how you said this, it's going to put stress on them. You've got another little baby on the way. This is going to be chaos.

And so you're not throwing away money by renting for a year as you continue to save up a down payment. And if you want to pay cash, that's great. I wouldn't sit on the sidelines for the next 10 years as you wait to save up cash. So if you can do this quickly, that's a plan. But otherwise, I'd wait until you can afford a 15-year fixed rate where the payment's no more than a quarter of your take-home pay. And let me say, I'll even go one step further, George. If this is you saying no just because of your ego, Zach, I'm a provider, I'm a man, and you have an opportunity to fast forward the financial

future of your life, of your family's life, significantly by just sucking it up for six months and you and your wife and your mother-in-law and your father-in-law sit down and draw up some things in writing, I don't have a problem with it. I have a problem with it if you're going to be moping around and getting hurt

the whole time. There's no end date on this thing and it just turns into four months, turns into eight months, turns into a year, turns into it never ends, right? So if there's some clarity there and it's just your ego, I don't have a super big problem with it, but I'm with George, man. It sounds like the right move is to go rent a place, a tiny little place that y'all can suck it up and manage it until y'all can get that house. Yeah. I've just rarely had people call in and say, we live with our in-laws for a year and it was just amazing. And it was the best thing ever. It's always like we live with our in-laws for a year, and it was just amazing, and it was the best thing ever. It's always like, we live with our in-laws because we tried to save money.

So tread with caution. Thanks. This is The Ramsey Show. Welcome back to The Ramsey Show. Our scripture of the day comes from Proverbs 27.1. Do not boast about tomorrow, for you do not know what a day may bring. Martin Short once said, if you have wonderful moments, don't second guess them, just enjoy them. I like that. Just be present, Sean. Have you ever tried that for once? I love Martin Short. Good guy. I'm not friends with him. I don't know him, but I'd love to be. Martin, if you're listening, appreciate that. Open phones at 888-825-5225.

Tyler's up next in Jackson, Mississippi. Tyler, what's going on? Hey, no, I was just trying to call because I'm young, and I've kind of gotten into this bad, I guess, inning with just being money, and I make a lot, and I didn't really grow up making a lot, and I was just trying to see what all y'all give me advice on. I work for the railroad. I started at, I mean, I turned 19 right when I started in the industry.

I make around $123,000 a year. That's not including overtime or any of the benefits paid. And I don't have any debt other than one car i recently bought about a year ago and that was just so i know i can get back and forth to work um and other than that that's the only debt i have that's probably around 25 000 uh but i just obviously noticed you know every other paycheck because i get paid twice a month that i'm living paycheck to paycheck and i just don't know where this money is going other than me just blowing it because i never had it um and everybody gives me advice and i just was trying to see what all y'all had to say about it well dude i i i've got my opinions on the railroad man so i'm i i

know the work you do is hard and it is unforgiving and i actually understand when you say i got to get a car because i can't not show up because i know about all that mess um can you if george and i walk you through this will you make us a promise that you will never listen to knuckleheaded advice from somebody in the yard ever again yeah i promise all right because this is you've been listening to them and here here we are, right? So you're going to listen to two knuckleheads on the radio instead. Fair enough? Fair enough. All right.

So you told us, you're like, I don't know where my money's going, man. I get these paychecks, and they disappear, and they're big paychecks. Give us some guesses as to where the money is going. If you had to rank them from most frivolous, here's where I know it's going, to least, give me the top three categories. Okay, let's say I still live at home with parents. Me and my girlfriend both live at home with my parents. We like to go kind of get out of their way when we go out and eat.

That's a big thing. Eating out? Yeah, and then just trying to live being young. We go to, you know, water parks or places like that, you know, and things that, you know, you wouldn't think that cost that much, but just going out and just enjoying the time we have. I'd say, like, you're just going and paying for, like, water parks or museums or something like that or traveling, I guess would be a good way to say it.

And then whenever I actually have the time off, is going to get to off day of the week. So where, I mean, you don't even have rent and you're blowing $120,000 a year. What's your car payment? I pay $595 a month on my car. Okay, so that's one place

your money's going. That's a big chunk. In my insurance, I pay for, unfortunately mine and my mother's vehicle and it's around it's about 500 a month as well so technically i'd say it's about a 900 payment because you really have to have to go because you get all right that ends august 15th here's why you're going to get out and get yourself an apartment you make 123 000 no more living at mommy's house okay okay you know what helps you stop spending when you have real bills like rent to pay and that goes uh you know we can't eat out

as much because we got to pay rent yes but you get out of mommy's house from this point forward okay and here's here's why i'm telling you that you're changing your family tree. And if you and girlfriend, girlfriend's loving the fact that you've won the lottery, making $125,000 a year, your parents are loving the fact that you made $125,000. I mean, this sounds like a movie.

You hear that, right? Oh, I know, yeah, I know, yeah. All right, you have to decide i'm done with this life i'm gonna get my own place i'm gonna start budgeting my money i am gonna take control of this because i have a lottery ticket and by the way there will come a time when the railroad slows way way way down It is right now. We're actually, they just started changing our schedule. They're going to start, and you're going to be sweeping the yard

for a quarter of your hourly pay, right? Or you're going to have to, I've got somebody that I love and care about who had to go move to another city to get work. Right. So that they could get on the board. So here's the thing. You're going to have to create some significant savings, really like

a farmer, because there's years when it rains and years when it doesn't, right? Right. Do you have any money in the bank right now? To be honest, no. Tyler, you got no bills! I know. Okay. I know.

Here's what we need to do. Number one, this car needs to get paid off as soon as possible. I'm not going to tell you to sell it because I think you can pay it off quickly with this income, but that means, you know, what's your take-home pay? Are you getting $7,000 a month? I'd say, let's see, it's usually about anywhere from $3,000 to close to $4,000 a check. So I'd say about $7,500 to $8,000 a month. Okay, so here's what we need to do.

We need to start sending $6,000 a month to that car lender. $6,000 a month, you hear? Oh, yeah. Which means we're going to cover insurance. And is covering mom's insurance long term is this like a quid pro quo because you're not paying rent or what um it's yeah you know you're kind of i mean it's literally one of those where you don't you know you live here so you can help do this kind of thing right that's why you don't live there no more that's why you do not

live there yeah yeah so it's you're not living rent-free when you owe someone else's insurance payment. So that's number one. We've got to start throwing a whole bunch of money at this car loan. Debt snowball. You only have one loan, you said? That's it? You're only debt? That's it.

I have like one credit card. There it is. A $200 loan. You know what's going to help your spending? Cutting up that credit card and sticking to cash and debit cards. I'm telling you, that changes the game. Because when you swipe that debit card, it's your own money, you think differently. When you hand over another $100 bill at the grocery store, when you're eating out, it hits differently.

So those are the two things you've got to do today. The other thing I'm going to do is gift you, if you're willing to use it. You've got to promise me you're going to use it, is EveryDollarPremium. That is our budgeting tool, and it has all these awesome features like paycheck planning. It connects to your bank account. You can drag up all the transactions and the categories. And this needs to be like your new hobby is just tracking transactions, everything you spend. And if it's not in the budget, because you said you're going to spend $200 on groceries this month, then it doesn't happen. And by the way, when you're in debt, you're not eating out. You got

one singular goal and it's to get out of that car debt. And that's going to make your girlfriend hate you, isn't it? Like, yeah, you used to be so fun. We used to go out and have fun. You're like, yeah, I'm broke. I have no expenses and I still can't make my paychecks work,

which means if you want to be with a man who can take care of you, he's got to figure his crap out, right? All right. And hey, I want you to hear what I'm going to say because I've been making jokes and laughing. I'm being very serious, okay? Okay.

Upwards of 70% of lottery winners go bankrupt. Wow. Millions and millions of dollars and they go bankrupt. They lose everything. Wow. Because of two reasons. Number one, they did not come up with a plan for their money.

And all those millions and millions of dollars did was magnify who they already were and who they already were was someone who just spends recklessly and spends money they don't got and takes out loans and gets whatever they want and doesn't say no and all that stuff. The second reason people who win the lottery go bankrupt is they're surrounded by leeches people who want a piece and want a piece and

want a piece and i'll even go a third and i'm gonna i'm gonna say altruistically it feels good when you just pick up the tab for everybody doesn't it feels awesome right yeah and when you can take your girl out anywhere y'all want to go, we're going to go to Sizzler tonight, honey. And she's like, alright, no more Arby's for us. We're going to Golden Corral, right? I mean, it feels awesome, right?

Right, right, right. People get used to that. It becomes an entitlement. And then it's, hey, will you pick up my insurance? Hey, you've got to pay groceries. Hey, you've got to pay the light bill. Because suddenly you're everybody else's cash register. So I want you to take the stuff George has given you for free and internalize it in your soul and come up with a plan for this money. So a decade from now, the entire family tree you come from is different because you made six figures and you worked that money and you were intentional with that money. Hang on the line.

We'll gift you one year of every dollar premium. That puts this hour of the Ramsey Show in the books. Until next time, spend wisely, save intentionally, and give generously. Hey, it's Dr. John Deloney. If you like what you heard in this episode and want to know more about getting started on the Ramsey Baby Steps, go to ramsesolutions.com and click on the Get Started button.

We'll help you figure out the best next step for you based on your specific situation. That's ramsesolutions.com and click Get Started.