The Ramsey Show - App - Pay for Stuff When You Get It (Hour 3)

Episode Date: March 4, 2020

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🎵 Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studios, it's the Dave Ramsey Show, where debt is dumb, cash is king, and the paid-off home mortgage has taken the place of the BMW as the status symbol of choice. I'm Dave Ramsey, your host. Thank you for joining us. Open phones at 888-825-5225 that's 888-825-5225 thomas is with us in texas hi thomas how are you i'm doing great dave how are you better than i deserve what's up well i just want to tell you

first my wife and i are long FPU facilitators. We've been to Entrez Leadership there in Nashville at your place, and we've also put our church through it as well. We've led them through it. So thank you, and thank you in God for all your blessings. Well, thank you, sir. Thank you for all the help. How can I help you today well my wife and i i'm 59 she's 52 we uh we just recently paid off 27 acres and a barn that we had built you know 10 12 years ago and a house we've been into for five years now we're we are it's about a 550 000 house we've paid off then we got about 260 left on it we're getting after it trying to get it done good good for you expect to pay that off we make 260 a year wow um we uh expect to pay that off within the next few years but here's the thing i'm very desirous to put a 100

solar power system on our property here. And they'll cover 100% of our electrical needs. Okay. And the thing is, other than our emergency fund, our fully funded emergency fund, we don't have the cash to do it. It's going to be, let me tell you the reason. I'm under the gun. It's a time crunch. First of all, the federal tax incentives are going away

last year there were 30 this year they're phasing down to 26 next year 22 and then they're gone yeah but that's not the problem because we could save up through the year and do it this year but right now i have a quote from an installer who's going to give me an additional thirteen thousand dollars uh for a you know if i I just pay it off and buy it from them now, but I'm on a time limit, within the next month to get that done, is it okay to borrow against the house and tack that onto the note and put that in? Okay.

This is the same guy who said he leads financial peace university right i said we have we're not leaving it right now but yeah i know you know what i'm giving you a hard time because you know you know i'm not going to ever tell someone to borrow money i know that you don't borrow money and i tell people to never borrow money except the possibility on a purchase of a home and that's it i have never never borrow money except the possibility on a purchase of a home. And that's it. I have never in the history of the show or the history of Financial Peace University told somebody to borrow money for solar. And I wouldn't do it.

In a fantasy world. I wouldn't do it. It's not a fantasy world. It's not a fantasy world. You make $260,000 a year. You've got a salesman painted you into a corner and is holding a gun to your face. Tell him to jump in a creek and eat his 13 000 and if he doesn't come back with a 13 000 discount when you got the money to pay cash you'll do business with his freaking competitor okay no pay cash you make

200 and something thousand dollars you turn with uh can you get a tax credit for 26 of that this year yeah and you can pay cash for that this year can't you yes yeah you can't this is an additional 13 i know but he'll give you the 13 000 in the fall or i'll go to his competitor. That's just bull, man. That's just bull. If he doesn't want to do it, it's okay. Somebody will take my money.

Let me tell you how many solar projects are $82,000 on a residential piece of property. None! This is the biggest fish this guy's ever gotten on a hook in his life. He ain't going gonna let you off you're holding the you got all the aces baby he don't have any you're holding the cards right so you play this you're the guy making 260 you're the guy's got money he's a solar salesman now last question right what do you think the break-even period is on this how much when you save on your electricity bill how much are you going to save? How long does it take you to get your $82,000 back? Oh, well, it'll be a long time.

The actual would be about $69,000 after the credit. Okay. And after the $13,000 and all that. Okay, so anyway, $60,000. It'll be a long time. How long? It won't be as long as I'm going to be paying an electric bill. And it wasn't just because of the electric bill anyway.

It's also stewardship of the planet and security. Yeah, I got you. Of having electricity when nobody else does. I appreciate all that. Those two things are luxuries. The financial decision is the break-even. Okay? Right.

So how much are you going to save a year in money on electricity? Well, again, not counting the increase in electrical costs or anything like that. In the coming 12 months after you install it, right now? Probably about $4,000 a year. Okay, so 10 years you make $40,000. Right. bucks a year okay so 10 years you make 40 grand right your break evens 50 your break evens 15 years not counting increases in electric bills so your break evens probably between 8 and 12 years something like that um i believe in solar the solar technologies that are out there now are vastly superior to what they were even just a decade ago, but certainly when it all started coming out,

when you and I first started seeing it 20 and 30 years ago, it was crap. But the technology is amazing now, and it's worth it. I endorse solar companies for installs in a lot of markets, but I would not recommend on a financial basis that you do an 8-year break-even period or a 10-year break-even period. That's too long but here's what i would do if i were in your shoes okay i would do the deal i'd pay cash for it but in my mind i would say half of this is because i have 260 000 income and i can just afford to burn

30 000 and this is how I want to burn it. It's a luxury purchase. It's going on a $30,000 cruise. Right, I was looking at it. Okay, and the other $30,000 is a reasonable financial decision. Okay. Yeah. I don't want you to call this a financial decision because it's not. It's like if you put a pool in the backyard for $25 thousand dollars and the value of your house goes up ten thousand well you got to enjoy fifteen

thousand worth of the pool because the other part of it doesn't make sense right and that's what this is you're right you get you got to be in your bonnet about solar and you know you can afford to write a check and do this thing by the end of the year and you should write a check in cash by the end of the year and do this thing. You may not be doing it with this particular company because I'm already pissed off at this company. But, you know, the good news is, dude, you've done very well with money. You're very wise. You make a lot of money.

You've been very intentional. But you've got solar panel fever. I mean, don't jump off the dadgum cliff now, man. Let's just say a portion of this is just because I can, and a portion of this makes financial sense. And that's okay. It's like putting a pool in the backyard. Same thing.

Other people rather have a pool, but that's okay. Again, I'm not against solar. Usually, in most areas of the country, depending on where the sun is and all that kind of stuff, it'll make more sense than the numbers you're giving me. But you're doing it for other reasons here, and I get that. I'm with you. Hey, thank you for the call, and thank you for leading Financial Peace University.

And don't ever tell anybody in one of those classes to borrow money to buy solar panels. I'll come hunt you down. This is The Dave Ramsey Show. Are high health care costs getting you down? Are you confused trying to navigate your options? Do you wish you could find an affordable, biblical solution to your health care costs? Based on New Testament principles, Christian Health Care Ministries, or CHM, helps Christian families, churches, and ministries join together as the body of Christ to share their major health care costs. Christian Health Care Ministries is the original health cost-sharing ministry. A Better Business Bureau-accredited organization,

CHM members share to pay each other's medical bills. It's not insurance. It's Christians financially and spiritually supporting each other. It's what Christian Healthcare Ministries has done for over 35 years, and our members have shared over $2.5 billion in medical bills. To learn more, visit chministries.org. That's chministries.org. Christian Healthcare Ministries is a proud sponsor of Dave Ramsey Live Events. chministries.org. Andrew is with us in North Carolina. Hi, Andrew. Welcome to the Dave Ramsey Show. Hey, Dave.

How are you doing? Better than I deserve. What's up? Well, first, really quick, thank you so much. You've been such an inspiration to my wife and I in terms of getting on the same page in our marriage with our finances. Cool. And then a quick question, I think just for context, we're on baby step two. But we purchased a modular cabin from a company in Tennessee to be like an in-law suite to help with child care.

And fortunately, we don't have any debt for that. But we got a notice that that company is filing for bankruptcy just over a week ago. And so I know nothing about like, you know, their assets or anything like that. So I guess the question would be, you know, that we're trying to be, I guess, all intense about Baby Step 2. Should we try to hire a lawyer to look into their assets and see if there's anything to recoup on this? How much money did you give them up front for the cabin? Well, it was a $50,000 check to start the cabin.

While you're in baby step two? Well, exactly. I mean, this wasn't a decision that we should have made, but it's a decision that has been made. And there's family reasons for it. We read boundaries that you recommended, and we're really working on that now. But needless to say, this is the situation we're in.

Okay. Do you owe the $50,000 to someone? We do not. So you prepaid for the cabin to be pre-engineered, designed, and delivered to you? Correct. In advance for 100% of it? No, no, no.

That was the payment. We went to the site for this place everywhere. No, I'm not asking that. I'm asking what the terms are. So you put up $50,000 for a deal that's how large? $100,000. Where are you going to get the other $50,000? We have the other $ in cash again this was a this was an in-laws like sell of a home that had money and the point was to to give them a new home

okay now the cabin company is supposed to deliver you the package and you all build it or they're supposed to build it on your site no they're supposed to build it on your site? No, they're supposed to build it. We prepare the ground. They deliver the cabin. But, obviously, we got notice of bankruptcy, so I would assume they're – No, I don't think that's – I don't think they filed Chapter 7. I think they filed Chapter 11, which means they're operating the business. Now, you are a creditor of that business.

They do owe you a cabin or $50,000, one of the two, right? But my guess is they're intending to deliver the cabin still. Okay. They probably didn't bankrupt on their customers. They probably bankrupted on their vendors. They're not responding to emails or phone calls anymore. Oh, maybe they did close up i don't know i know the company and i heard they filed i know the company and i heard they filed

bankruptcy but i didn't know that they closed completely i thought it was a chapter 11 if it's a chapter 11 like literally three or four weeks ago have you got the uh have you got the bankruptcy notice uh i can probably pull it up in there okay if it's a chapter 11 you've got a shot a chapter 11 is a reorganization where they don't pay some of their creditors and they continue to operate if it's a chapter 7 you lost 50 000 bucks okay you're not gonna you're not gonna get anything to do about it right there's If it's a Chapter 7, you lost $50,000. Okay. You're not going to get anything. There's nothing you're going to be able to do about it.

And there's not anything you, and, you know, you're not going to get your money. If they went so far down that they're closing up, they're not going to send you the logs, and your money's been gone a while. Gotcha. you the logs and your money's been gone a while gotcha and you can't get blood out of a rock and you don't have any preference over any of the other creditors if there is any money after they liquidate all the assets of the company they will distribute it to the creditors and you will be on the list you could file a note you know you could you'll get a you'll get an opportunity to file anybody for that you could you can but i wouldn't spend a lot of money on it because you're probably going to get zipped. My better hope for this disaster is that it's a Chapter 11 and they're continuing to operate,

and they've just shed themselves of some of their other debt, but they're going to continue to try to keep the thing open. And the only chance they've got of doing that of course is to continuing to make cabins and delivering them right right yeah yeah i'm sorry that's okay what did you um i have the paperwork i just don't have it on me what did you uh you know so this this is your mother-in-law? How'd this deal happen? Oh, like I said, it's a situation where we had an in-law that we've been caring for, you know, and just poor boundaries.

And, you know, we were in a situation where we wanted to have them close but not in our physical house and uh so that's our that's what helped us decide to make this decision okay all right um i'm looking online and i think it is i'm trying to do it while i'm talking to you and it's kind of weird while i'm on the radio but i think it's a chapter 11 and so i think you got a shot i may be wrong but i because i'm just i'm just glancing through what i'm saying if it's chapter seven if it's chapter seven chapter seven is what we all think of when we think of bankruptcy that's the atomic bomb and any of the the thing is shutting down they're going to sell off any equipment or assets that they have and uh they're going to pay

out to anybody that is owed money including you but that means that there's not much there for them to do that with and most chapter sevens the creditors don't get any money or you may get five grand or something on your 50 grand okay because they don't get any money, or you may get $5,000 or something on your $50,000, okay? Because they don't have any money, that's why they close down, right? Correct. And they're not required to do anything else. That's the point of a Chapter 7. It wipes the slate clean.

A Chapter 11 is a reorganization bankruptcy for businesses or large personal situations, and that is they submit a plan to the court to pay some of their creditors in different classes, and they continue to operate. I'll give you an example. Many years ago, Kmart filed Chapter 11 bankruptcy before it finally did go broke two decades later. When it filed Chapter 11 bankruptcy, what they did was they had a bunch of empty Kmart stores they were still having to pay rent on. Their plan was they cut those off and didn't have to pay anything.

Their plan was don't pay those landlords anything, and that way they'd become healthy enough to keep the current stores open and running and keep those jobs in place. The judge approved that plan plan so those landlords all got their properties back with these came empty kmart buildings on them but got no money the and then kmart kept operating and so if you had money in lay if you had something in layaway at kmart as a customer you could have gone in and got your layaway you didn't get screwed right but a chap if they'd filed chapter seven then everything sold off and what little money is there is used to pay towards creditors in order of preference. There's a preference order on creditors in bankruptcy.

So that's what you're facing, and I wouldn't spend a lot of money chasing money. I mean, I'd spend $500 to file the paperwork in case I'm in line as a creditor, and you should get a notice of creditors and that kind of thing if it's a chapter seven but um that's the uh um but if it's a chapter 11 i think you'll probably get your house not sure you're gonna want it i'm sure you should have done it i know you should have done it but i don't think you'll probably get it sorry you're going through this, though. Hey, that puts, thank you, man.

I hope that helps you. Open phones at 888-825-5225. You jump in. We'll talk about your money, your situation, and, you know, we'll try to help you. I'm trying to read and see what this thing is. Oh, no, I think it's a 7. Oh, well. This is The Dave Ramsey Show. Thank you. All right, closed circuit to Andrew, who I was just talking to in North Carolina,

who put up $50,000 with a cabin company for a prefab cabin, and then they went bankrupt. I was able at the break to find it, because I know the company, and I know some of the guys, and it's a horrible situation. But anyway, it is a Chapter 7 bankruptcy. And here's what you need to do, Andrew. You do need to get an attorney. And you do need to file a claim as an unsecured creditor. The article that I'm reading says they have a million dollars, roughly, a million and one in assets. And they have debt in excess of of that obviously they owe more than

they're worth uh so you're not going to get a hundred cents on the dollar and there's like a million four in debt probably somewhere in that range and um but six hundred thousand of that's owed to a bank that has collateral so the bank's going to get every bit of that they're going to get their money they're a preferenced creditor because they have a lien on stuff. You are what's called an unsecured creditor for the rest. But you might get $5,000 or $10,000 of your money back, and it's worth spending $500 with an attorney to file with the court as an unsecured creditor so they have all your information,

and after the court, the bankruptcy trustee sells off all the stuff. Synergy Bank that's owed 600 grand will get their money first, their secured creditor, but any other money they can get out of these other assets they're going to distribute and there's a bunch of people got stung that put up deposits according to this article I'm reading. So anyway, that's where you stand, and that's the deal. Okay, so what's the moral of the story? Well, he said several times in the call that this was a deal they shouldn't have done. It was a violation of boundaries and so forth and so on, and they're going into debt somehow or using somebody's money or something to do a $100,000 cabin, and they put $50,000 up front for the cabin. You don't put $50,000 up front in a building job. That's the moral of the story. Because if the builder files bankruptcy, you get zip. That's where you stand,

because you pay for stuff when you get it. I mean, a small deposit would be reasonable. A 50% deposit would not be something I would have done there. And I'm sorry. I'm sorry you got burned. But that's the, you learned a whole bunch of different lessons in one single story situation here. And horrible. I'm sorry. All right.

Kevin is with us. Kevin's in Iowa. Hi, Kevin. Welcome to the Dave Ramsey Show. Hey, Dave. Thanks for taking my is with us. Kevin's in Iowa. Hi, Kevin. Welcome to the Dave Ramsey Show. Hey, Dave. Thanks for taking my call. Sure. What's up?

First off, I hope you and all your employees and their families are safe from the storms that just went through here. Secondly, Dave, I lost my wife January 14th. Oh, my goodness. And sorry. It's okay. I have money to do something with, and I know I listened to you enough to know you tell people to take time,

don't do anything immediately. But there's a couple things that I do want to do right off the bat. And then beyond that, I want to just make sure I'm on the right frame of mind for what I have in mind. What happened? She had a liver disease. Oh, I'm sorry. How old was she?

58. How long have y'all been married? 26 of this month would have been 38 years Wow It's about the same as sharing with me Oh my goodness, I'm so sorry Okay, so you've got some money And you've got some situations

That even in the middle of all this grief You want to try to make a few moves, right? Yes What are they? I have a bunch of numbers to throw at you Have at try to make a few moves, right? Yes. What are they? I have a bunch of numbers to throw at you. Have at it. It's not too hard. No, have at it.

Okay. So first of all, I made last year $107,000, $13,500 of which was hers. So I'm estimating my income at $95,000 next year, this year. Okay. Part of that is I am a 20-year Navy retiree with a 60% disability, so I have long-term income there. Yeah. I work for the government.

I have almost 16 years in. What is the decisions you want to try to make? Okay, Dave. First of all, I found out from our financial guy that I can do $7,000 in a Roth for last year and this year, but I think I have to do that before April 15th, which I'm planning on doing. I have received $125,000 in life insurance. So $25,000 was a separate. So 25, the 25 was a separate policy. Do you have any debt except your home? None. Okay. All right. And you have your emergency

phone in place, obviously. Okay. Well, what do you owe on your home? I owe $170,000. I refinanced that three years ago for 3% 15-year, and I'm paying a little extra every month, so I'm ahead on that. A $14,000 decision is not the end of the world, even if it was the wrong decision, and it's not. It's a good decision. So, yeah, I'd do a couple $7,000 Roths and some good mutual funds. There's no problem with doing that.

Before you file your taxes. Another seven was the funeral home bill, so that pretty much takes care of that. I've got $100,000, and I'm just curious to pay towards the house. I want to put a chunk on the house, but then I'm paying at 3%, and then I'm planning on working six more years. Maybe if I put – I kind of want to split that and put something that's, maybe I should put that into an account and let it grow at a higher rate.

And I feel like I'm going to try and get a six-year plan towards before I retire and like to have my house paid off by then. What I would do if you were not in this situation is I'd put above your emergency fund, I'd make sure you're putting 15% of your income into retirement, and I would start paying off your house, meaning I would throw it all at the house. But I'm not going to do that. I would not do that today in your situation. So I would do the Roth IRAs, do the Roth IRAs and pay the funeral home bill and then put the rest of it into a CD for six months and cry. That's not hard.

Yeah, I know. I know. So I'm putting about 20% right now in my retirement. Yeah, you'll be backing that down to 15% and putting the rest of it on the house on what we call baby step four, 15% into retirement. Everything else goes on the house until the house is paid for, including this lump sum, after six months.

Dude, you are in no condition today to make big financial decisions. Okay. I wouldn't be either. Right. And I teach this. Do a good job. Well, bless your heart. Also, I found out through her work, I knew she had one, I didn't know the numbers,

but she had about 60 in an IRA. And my advisor recommended me just to leave that there and don't touch it, which I'm good with. Agreed. But I got a thing from them, and just a quick question. So I'm asking you, is there any benefit to me keeping myself as a beneficiary instead of putting that in my name because there is a thing saying if I'm under 59 1⁄2, which I am,

if I ever wanted to, I could take that and avoid the 10% penalty. I just don't see where I'd ever need to. It's an inherited IRA, and so there is no penalty on it. Right. Ever. But is there a difference? Is there really six, one, half dozen, the other to keep myself as a beneficiary or

to put in my name? It doesn't matter. I'm not intent on putting any more in it. It's an inherited IRA. It stays in the account name and you're in control of it as the beneficiary. So it doesn't matter. It doesn't matter. It's got the exact same tax benefits. Your advisor told you correctly.

Is it It doesn't matter. It's got the exact same tax benefits. Your advisor told you correctly. Can I put a, because she passed this year, I know I can, through my tax man, I found out I can stay claiming married next to this year. Correct. But is another $7,000 in Roth possible under her name for this year? I don't know, and I wouldn't. It just is going to complicate your life. Let's just keep it real simple. You don't have to get all sophisticated right now.

Just sit in the pain right now. I'm sorry. But if I were in your situation, I wouldn't make a bunch of big financial moves. I do the couple things you're talking about, park the rest of it into a CD and give yourself some time. Thank you. Our scripture of the day, Proverbs 1.5, Let the wise hear and increase in learning, and the one who understands obtain guidance. Sheryl Sandberg said, The ability to learn is the most important quality that a leader can have. Our question of the day comes from Blinds.com.

They have a 100% satisfaction guarantee. That means even if you mismeasure or you pick the wrong color, they'll remake your blinds for free. You get free samples, free shipping, and with the new promos they run every month you'll save even more use promo code ramsey and you'll get the best deal aaron is in california when would it be appropriate to ask your girlfriend or your boyfriend about their financial status debt credit score etc and what would be the appropriate way to ask thanks?

Well, it's a great question. You're asking a guy who's been married for almost 40 years, so I don't know if I need to be giving any dating advice. But, you know, it is a – I remember when my kids 15 years ago were teenagers, what did they call it? A define the relationship moment or something. Is that what they called it? Yeah.

A DTR, define the relationship. Yeah. And so that's kind of the point here. I mean, I think it's probably a little bit nerdy to do this on the first date. Like, hey, what's your credit score, babe? I'm on the Dave Ramsey envelope system or whatever. But some people do that. And if they're dating another Dave Ramsey person, everybody thinks it's cool.

They high five and and, you know, they're off to marital bliss. Right. But but otherwise, it kind of pretty much comes off like you're a super nerd. So, you know, you know, I think if the relationship is getting enough that you think it's going to go somewhere, you start talking about a lot of things that are important. The statistics tell us in research, and I think I've found it to be true in common sense over the years, that couples that agree on four areas prior to being married have a very high success ratio in their marriage. Take out any one of these four and it goes down.

Take out two of them and it goes way down. The number one thing couples need to be in agreement on before they get married is money. What we're going to do with it, because it's the number one thing people fight about. Are we going to handle debt, savings, vacations? Are we going to spend everything on Friday night? We make the check on Friday afternoon. Thank God it's Friday. Oh, God, it's Monday. We're going to be children all friday night we make the check on friday afternoon thank god it's friday oh god it's monday we're going to be children all our lives yolo baby you only live once right and so if you're going to live if you're going to marry

one of those you need to know it and be ready to make a lot of money because they think they're in congress and so um that's what you're facing so you've've got it. You know, you kind of got to know this going in. You need to be in agreement about money. And I honestly wouldn't know if you have serious different value systems. All sarcasm aside, I would not marry somebody on the money piece. The second one is in-laws. Every family has crazy in it. And sometimes it's closer than others. And sometimes there's more of it than others. And so you need to go, what do boundaries look like? I was talking to a young man that was getting ready to get married or thinking about getting married a while back.

And his mom raised him, single mom, and had been through a nasty divorce. And I said, so what happens if she're, and she was struggling financially. I said, what happens if she gets in trouble financially? He goes, oh, she just moved in with us. And I said, have you discussed that with your potential future wife? When he did, and she said that, he said that his future potential wife was no longer his future potential wife. She didn't know, he didn't know how to set boundaries. Oh, mom just lived with us, yeah. And his potential girlfriend said, no, that isn't going to happen, and that ended that relationship.

You need to know about the in-laws. You need to know about kids. That's the other one. Are you going to have kids? I want to have 14. I want to have one. Well, you've got a bit of a disparity here. You need to think about it.

We're not going to have any. We both agree. Okay, there you go. You got it. That's cool. You know, you need to be in agreement about this because one of you is going to be perpetually dissatisfied if you're not in agreement with that.

And the last one is religion. You need to be in agreement about it. People that are in Christianity, we call it, don't be unequally yoked. But in other religions, they call it different things. But if you have vast discrepancies about how you think the universe works and what you think God is or if there is one, you're going to struggle in your marriage. So marriage, money, in-laws, kids, and religion. if you can be in agreement on those things so the answer to your question then is when would you talk about religion

in your dating process when would you talk about in-laws when you start talking about having kids that'd be a little weird on the first date right and so uh don't be strange right so um that's the thing so i guess as you're getting closer is when you would do that, right? And I don't know, for some people in some situations, that's faster than others. But I don't know that there's necessarily a formula. But, you know, normal people would not do that until they began to have a tighter relationship and it looked like it had a future to it. Because otherwise otherwise it's a casual dating relationship and you really don't want to disclose, um, your, you know, your life at that level at

that point. That's not what it's for. It's a casual thing. So that's, it's an opinion of an old guy who doesn't know how to date. So there you go. It's worth, it's worth what you paid for it. Right? Open phones at 888-825-5225. Misty is with us in Alabama. Hi, Misty. How are you? I'm doing well, Dave. How are you?

Better than I deserve. What's up? Okay, so my husband and I are on baby step two, and I've got a question about my truck. I'm driving my daddy's old pickup truck that he left me after he passed away a little over four years ago. Totally paid for, obviously sentimental to me. Sure. But we've realized that we've got some engine issues. There's some water in the oil.

We've had the head gaskets changed and whatnot. We know that's just a Band-Aid, so we know it's impending doom, right? So we're looking at around $2,500 to repair my truck. We've got, my husband's driving his truck that's on one of the loans that we're paying on in Baby Steps 2. It's down the line though. We've got a spare truck that would need about $1,000 worth of repair before we could kind of drive it in the interim. So we kind of wanted your input on how to prioritize saving for these repairs in the middle of trying to knock out Baby Step 2. Well, I think what we're trying to do is keep rolling first, right? Yes, sir.

And that means we fix the cheapest car and keep rolling and park the other one switch out which one's parked um if you didn't have nostalgic on the 2500 repair truck i'd dump it but it's nostalgic and so we have to think about that a little bit doesn't cost much to park it right and fix the other one and drive it until you get through your baby step two and have some money to make a decision. And then you can decide, okay, we're going to move up in car, or we're going to put an engine in the old truck, or we're going to dad's old truck, or we're going to leave dad's old truck sit there for a little while

until we can put an engine in it because you've got an engine block gone, it sounds like. And water in the oil is not something you ever want to see ever in any situation so um there's no good reason for that to happen it's all bad reasons that that happens so um anyway anyway you can park the thing and say you know it's going to bring 500 bucks if we sell it like it sits so So for that $500, I'll just let it sit over there, and someday when we get our lives straightened out, I'll fix it up. Right. Or you could just say it's nostalgic, but it's not that nostalgic.

I'm dumping it and getting it out of the yard. You know? Either one's okay. It's one of those things that I can't make a decision on because it's Danny's old truck. I got you. And I've kind of put it off. I got you. I kind of felt like that's what you were going to tell me.

Either one's okay. I mean, really, because, I mean, if it was $80,000 and it would change your whole life, I might call you on your nostalgic, but for $500 worth of salvaged truck, let it sit there until you get yourself straightened around and fix it up. You may be glad you kept it around.

Nothing wrong with that. It's not going to change anything. It's not enough money. But don't put $2,500 in today. You're broke. Get the other one rolling and keep working. That's what I would do. That puts this hour of the Dave 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 guys, it's George Campbell, host of the Dave Ramsey Show video channel. This hour is up, but you can find more great content on our YouTube channel. Catch the most watched Dave rants, debt-free screams, and the very popular Everyday Millionaire segments. Go to the Dave Ramsey Show YouTube channel and click subscribe.