The Ramsey Show - App - Personal Finance Isn’t a Feeling, It’s MATH! (Hour 3)

Episode Date: August 29, 2023

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. Thank you for joining us, America. I'm Dave Ramsey, your host, Ken Coleman. Ramsey personality, number one best-selling author of the book Paycheck to Purpose and host of The Ken Coleman Show where he talks about work and careers is my co-host.

Open phones at 888-825-5225. Email comes across, this article comes across our producer's desk, and he said we need to make a comment or two on this. A Bloomberg survey of 1,000 of the top 10% of U.S. earners turns heads this week because a quarter

of respondents, all making $175,000 a year, identified as either very poor or poor, or getting by but things are tight over half of those surveys dubbed the regular rich said they worry about money the objectively wealthy grappling with being subjectively poor provides quite the snapshot of this moment in american history it captures how the increased cost of everything from cars to tuition to groceries makes it harder to build wealth how rising generations are failing to attain their parents' financial security

and how social media impacts perception, fueling lifestyle comparisons while making the ultra-wealthy class more visible. But even for the comfortable, the goalposts keep moving. There are always the Joneses to keep up with. Take the latest trend on super yachts, for instance. Don't have your own submersible on board? Well, you're practically a peasant. This is gobbledygook.

This is nonsense. The objective wealthy grappling has pointed out that the increased cost of everything is the problem. There's no mention in here of rising credit card debt. There's no mention of what the average car payment is. This is highlighting we have more and more people who just aren't willing to be patient. I like to get behind the problem of the problem of the problem. And this is just highlighting that people are griping about making $175,000 a year. Inflation sucks, Dave. I got two teenage boys and yeah, my grocery bill's gone up to feed those guys. They eat a lot of food.

But I have margin, and if I don't have margin, I can make margin. This kind of stuff makes me so angry. Dave-onomics inside my household trumps Bidenomics outside my household. I like that I can control what's inside my walls enough to where if Biden screws up the economy hint hint then I can still be okay hint hint right yeah so no we're not going to increase the increased cost of everything did not make $175,000 people feel poor. Yes. You know, what made them poor was $1 trillion in credit card debt,

$1.3 trillion in car debt, and $1.7 trillion in student loan debt. There it is. All of those with a T, trillion. Count that with me, boys and girls. That's a lot. So, yeah, they're so far in debt they can't breathe. And then, yes, they're comparing themselves to people on social media. And comparison is, Rachel Cruz says this is a great line in her book, Love Your Life, Not Theirs.

Comparison is the thief of joy. That's right. And that's what we're talking about here. That's exactly right. So social media made these rich, whiny brats who can't seem to manage the person in their mirror, comparing themselves on Instagram to other rich, whiny brats best sizzle reel best of picture is uh causing them to feel like they don't have any money yeah that's what it is oh yeah so getting by on 175 000 a year it's a case study every day on the show you know i help people get

through that the book baby steps millionaires where we talk about all the people that became millionaires, one of the things I had to point out in that book because we run into it so much, I did an entire chapter on this, a million dollar net worth is not a billion. No. A million is not a billion. So let me help you with this. Billionaires have private jets millionaires do not billionaires have four houses millionaires have one billionaires have seven cars including a lamborghini millionaires have a used pickup yep that's correct so people think well when I get to a million dollars, I'm going to be flying private like somebody on an MTV thing, right? Is MTV even still open?

That's a good question. Is it? Is it still on the air? Apparently it's still on the air. It's still on the air. It's still on the air, but I doubt there's much music on it anymore. There's four people on it now. It's kind of gone the way of CMT.

It just buried itself. Okay. But anyway, they, yeah, so anyway, you know, when you see the rich and the glamorous and the famous, what you're seeing are billionaires, not millionaires. And so to compare yourself as a millionaire, which is wealthy, there's only about 14 million millionaires in the United States. That's all. And to compare yourself with a billionaire as a

millionaire and thereby declare yourself feeling poor, well, it's, you know, of course. So that comparison is the thief of joy. You're right, Ken. You're exactly right. I mean, the opening of this article, and this is, we've got to pay attention to this, folks, because this kind of stuff right here that, oh, I don't feel like I've got much money when I'm making $175,000. The problem is your feelings. You felt you needed a car that you can't afford. You felt you needed to go to a college that you couldn't afford. You felt a lot of things.

And let me tell you where this goes, Dave. People told you your feeling mattered. Right. It doesn't matter. And so here's where this goes. This is the kind of garbage. These articles are popping up more and more. This is where universal income starts to get a hold. Pay attention to this stuff. Just watch for it, folks. Because when I can't take care of my bills,

then I need someone to come rescue me. And you got a bunch of people going, I can't afford my bills. Bail me out. Bail me out. Bail me out. And this stuff is insidious for younger generations. That's the thing we got to keep our eyes out for. I'm telling you right now, we're seeing it tested. Several mayors in very left-leaning cities are testing universal income right now. And it's all because people don't want to have to deal with their own feelings and the mess they made for themselves. So they just go, take care of it for me let me tell you watch for it personal finance is not a feeling it's a math thing that's correct and so here's a here's a feeling for you if you don't have the money don't buy it see that's not a feeling

that's a principle yeah it's maturity and i but i want it that's a feeling but i'm gonna throw a fit like a spoiled three-year-old on the cereal aisle that's a child it's a child and i deserve it you don't deserve anything you haven't earned the money to pay for it come on you know don't tell me you deserve something you don't deserve anything shut up call the wambul ambulance. Seriously. If you deserved it, you could work and save up the money and pay for it. Then we could say you deserve it. So people say, Dave, you need to quit saying better than I deserve.

Better than I deserve is not a statement of contentment. That's a spiritual statement. I deserve hell and I'm not going because of Jesus. That's better than I deserve. Better than I deserve is a statement of spiritual grace. It's not that I deserve. Better than I deserve is a statement of spiritual grace. It's not that I don't deserve the success. I deserve the success.

I've worked my butt off for 40 years at this. And now I'm an overnight success. Operating word, work. And don't even have to for the last two decades. But did it anyway. Hello. This is The ramsey show ken coleman ramsey personality is my co-host today thank you for joining us hey guys if you're enjoying the show you can help us by subscribing clicking the subscribe button the follow button

leaving a five-star review click the share button click the like button share a link tell somebody where you're listening spread the word for us boys and girls it helps we really would appreciate it we know that is happening because we keep showing up in the top 10 or 12 of all podcasts in the entire world now with 1.5 billion downloads. Thank you. Thank you very, very much. We appreciate you. We appreciate the number of you listening on talk radio

and all the other venues that are out there. We appreciate you. Open phones at 888-825-5225. Catherine is in Washington, D.C. Hi, Catherine. How are you? I'm doing well. How are you? I'm doing well. How are you guys doing?

Better than we deserve. What's up? I'm calling in today to just get your advice on our student loan situation. So my fiance and I, we have about, I'd say, $55,000 in student loan debt. And we paid that down significantly. We had over $100,000 in student loan debt. And we paid that down significantly. We had over a hundred thousand, but we just purchased a house and we had been saving, you know, towards that goal. And we're just kind of reframing things. Now we can save enough to put 20% down and get ourselves sort of in better position, you know, with no PMI. But we bought at just the wrong time.

It was right when the interest rates went from like 5% to 7%. And so we're paying about $400 more than we had planned to a month on our mortgage. So we do have savings left over from what we had sort of been saving up. And it's just sort of a question of like, do we dump that money straight into the student loans or do we do have some work that needs to be done on the house? And we're just trying to figure out like, what's the best course of action moving forward? When are you getting married? Well, we kind of put everything on hold

because of saving for the house and didn't want to put money for that. Just like the plan for the wedding. Okay. Because there's not a we until you're married. We don't have a student loan. You've got a student loan. He's got a student loan.

You have a partnership on a house with no partnership agreement, which is really unbelievably dangerous. You've gotten yourself into some real scary territory here. So you've combined everything and you have no method for managing it because you're not legally combined. Does that make sense? It does. If he dies, you're screwed. We didn't really have the right to get married for a while.

My partner's a woman. So, you know, we've been together 17 years, and I feel pretty comfortable with that. But, you know, I hear you. Okay. It's just you need a detailed, if you're not going to get married, you need a detailed partnership agreement. Yeah, we do have some in place, which is great. Okay, because I don't want one of you dying and the other one being left in a mess.

Yeah, yeah, no, I hear you. I hear you. Okay, so how much is in savings? How much is in savings? So we have $25,000 in savings. And you have $55,000 in student loan debt. Yeah. And what's your household income

um about 120 okay so if we throw 25 at the student loan debt that leaves us 30 in student loan debt how quickly does it go away making 130 yeah it goes it goes a little bit more quickly um we're no i'm asking you literally how fast do you pay it off making 130 you only owe 30 000 is that your only debt other than the house that is our only debt yep yep we don't have any car payments we don't have you know we've we tried to make some smart decisions there if you guys will commit to leaning into this and knocking off that other 30 really fast i'd throw the 25 at it today yeah i guess i just was nervous because we you know our mortgage is just more than we had initially intended just because of the interest

rate so we are if your mortgage is so much that you have to use savings to supplement it you need to sell the house we don't we okay then use the savings and get your student loan debt okay you don't need the nerves are if you need to use your savings to cover your mortgage, you need to sell the house if the nerves are that bad. Otherwise, you need to not have the nerves and let's get this done. Right, right. Yeah. Yeah, yeah.

That's what I would do. I would throw the $25,000 at it or I'd sell the house, one of the two, but I don't think you're going to sell the house. So let's throw the $25,000 at it and let's take the $30,000 and get it knocked out in under a year. Put $3,000 a month on it and be done in 10 months. That's the way we look at things around here. Hope that helps you.

Thanks for calling in. William's with us in Ontario, Canada. Hi, William. How are you? Great. How are you doing? Better than I deserve. What's up?

Good to hear. My wife and I are 27, and we'd really like to do more farming. Access to land is obviously a huge hurdle. So my mom is set to inherit 100 acres in, it probably could be 10 or 20 years. We don't know. But since my dad passed away last year she's been kind of just crop sharing it with neighbor or with my uncles and we're wondering if it makes sense for us to um kind of do a renting situation from her um that's what your uncles are doing

they're renting it on a crop share basis right, but we want to do a different type of farming where we would be putting a lot more fencing in, planting trees and ponds and that kind of thing. And we would want to live on site to do that. So there's a farmhouse there. So my mom's open to doing that, but we're worried that we wouldn't have any ownership. Yeah, I would be too.

Yeah. You don't go greatly improve the property when you're the tenant. Right. doing that but we're worried that we wouldn't have any ownership yeah i would be too yeah you don't go greatly improve the property when you're the tenant right so like it's access to land is so hard so it seems like there's all this land that we could use but it's so far away in terms of in terms of what we could inherit it like after okay what's this hundred acres worth try again you broke up about two million or so okay let me help you with this when you're 27 years old and you're broke you don't get to buy a two million million business? No. We were thinking of just buying a smaller parcel somewhere else that wouldn't be attached to my mom's at all and wondering if that's a better way to do it.

How many brothers and sisters have you got? One brother. Okay. Why don't we go ahead and work out the estate plan, and your mom deeds you part of this. Already? Okay. Doesn't she this. Already? Okay. Doesn't she own it now?

No. No, so my grandmother still owns it, so my mom won't inherit it for another 10 or 15. Oh, yeah. So, okay. So this property is just, this property is not, it's off limits. Yeah. For now. Unless your grandmother wants to give it to you.

But your uncles are farming it, so she's not going to give it to you but your uncles are farming it so she's not going to give it to you she's going to give wait a minute it's 100 acres and your uncles and your mom so why is your mom getting all of it in 20 years or 100 is just her portion yeah there's 400 total oh okay okay that makes sense all right Okay, that's not going to solve your equation. Okay, that's off limits. Waiting 20 years to do something and fencing and putting ponds on property that's not yours is insanity. Too many things can go wrong with this. No.

So if you want to go farm, what are you going to do? You're going to go lease some land somewhere and farm. Okay. That's what you're going to do? You're going to go lease some land somewhere and farm. Okay. That's what you're going to do what your uncles are doing. Yeah, and we're worried about that as well in terms of improving the land while it's only a lease. That's why we're just thinking, so you'd recommend we just keep saving up until we can buy our own land that we can improve ourselves.

Yeah, don't improve anything. But if you want to be in the farming business right now, So you'd recommend we just keep saving up until we can buy our own land that we can improve ourselves? Yeah, don't improve anything. But if you want to be in the farming business right now, you can be in the non-improving someone else's land farming business. Okay. Until you can get to where you can buy some land and then you improve your own land. But there's not a model that we can recommend that you go spend $500,000 in five years of your life and lots of calluses and sweat to improve someone else's property. And then they end up with all that. No, that's not a good plan. And there's not a mechanism that protects you from that just because you have the love and the romanticism about farming.

Farming is an incredible career. But don't do it in a stupid way because like any career done stupid, it's not fun. This is the Ramsey Show. Ken Coleman, Ramsey personality, is my co-host. Marie is with us on the debt-free stage right here in the lobby of Ramsey Solutions. Hi, Marie. How are you? I'm good. How are you? Better than I deserve. Where do you live? Ottawa, Canada.

Whoa! All the way from Canada to Nashville to do a debt-free scream. Well, congratulations. How much have you paid off? $132,627.42. Excellent. How long did that take? 46 months. Wow. Good for you. And your range of income during that four years? It started at $59,063. And last year it was $54,550. And this year is going to be less, unfortunately. Okay. Why is your income going down?

I had started with income replacement replacement um with veterans affairs and when that ended i was still sick with covid um and so i got a part-time job and i was just laid off last month so oh wow okay all right cool so right now you're unemployed yes and you paid off 133 000 making basically 55 60 000 a year yeah60,000 a year. Yeah. What kind of debt was the $133,000? It was cell phone therapy, overdraft, personal loan, school government loan, credit cards, retirement loan for school, which is allowed in Canada, and a student line of credit. Wow.

I also cash flowed windows, electricity and fertility treatments during that time. You were kind of normal. I mean, you got dead on everything. Yeah. So what happened to you four years ago that got you started on all this Ramsey stuff? So I had, my mom had sold our childhood home and moved to Ottawa with me because I was going to be a midwife and on call 24-7. And she said that I could live rent-free as long as I was paying off my debt.

And then after we moved, we were doing renos and we had a whole bunch of chaos. So May 2019 is when I really got serious about it. Okay. So your mom inspired this? Sort of got serious about it. Okay. So your mom inspired this? Sort of, yeah. Yeah, okay. And then how did you get connected to Ramsey? I'd actually read your book, Total Money Makeover, in 2008.

And the only piece that I took was Baby Step 2. So this is my second time through, but this one's going to stick. Ah, good. But now you're done. I mean, you're out of debt. You're done with that part anyway. Yeah. Yeah.

So you get to move forward and you're not going back in debt again. No. And I listen to the podcast every day. Ah, well, thank you. We're honored to have you. What was the toughest part of this journey for you? I think just getting control of my budget. I am a spender with a surplus mindset. So

not spending is extremely difficult. And as a single person with a daughter and taking care of my mother, it's, you know, there's always things that you want and think you need. So that was the hardest part. And when I started the process, I was in school. And when I finished the process, I was back in school. So. What are you studying? I just finished cabinet making and furniture technician on August 18th. Okay. So you're ready to go to work doing that, huh? Yes. Very good. Proud of you. Very very cool sounds like you've been through a lot of transformation yes but i've been a wild four years yeah yeah wow well good for you congratulations thank you how's it feel to be completely free it is amazing how old are you uh 44 have you ever been debt free in your adult life um yeah i I actually, when I transferred to the full-time military,

I was debt-free. I had been working for 10, 15 years, and then my income almost tripled, and I went, woo-hoo. There are no limits. I'm a spender. Okay, I got you. Okay, so that's the fall off the wagon part you don't want to do again

no never gotcha okay i'm with you well well done okay four years 46 months you pay off 133 000 making 55 000 to 60 right that's pretty impressive uh what do you tell people the key to getting out of debt is um the biggest thing I think is never giving up. I mean, no matter how slowly you're moving forward, you're moving forward. And no matter how long it took me, I knew that it was going to end. Yeah.

Way to go. I'm proud of you. Thank you. Good work. I bet your mom's proud of you. Yes. Yeah. This is something she likes for you she's happy for you yeah that's good good for you well played well played well played excellent excellent work all right and you brought your daughter with you right yes and how old is she she is seven oh okay and what is her name cecilia oh very good all right

we've got a copy of the baby steps millionaires book because you are on your way to do that and of course a total money makeover book as well and a financial peace uh university uh membership for you to sign up all of that is the live and give bundle you'll live some of it you'll give some of it we're so proud of you guys well done thank you very very well done all right it. It's Marie and Cecilia from Canada. $133,000 paid off in 46 months, making 59 to 54. Count it down. Let's hear a debt-free scream.

Three, two, one. I'm debt-free! Yeah! Woo-hoo-hoo-hoo! Well done, well done. Oh, man. That was excellent. Great job, kiddo.

Very cool. Margo is in New Hampshire. Hey, Margo, welcome to the Ramsey Show. Thank you very, very much for taking my call. Sure. What's up? Well, my husband and I have term life policies for our life insurance, and we are 12 years in. We've been paying $182 a month, and our situation from when we entered into this to now is very different.

So we're just wondering if we should stop paying to pay out now. Well, term life insurance is to replace his income to make sure you're okay if he dies. Yes, so he is retiring within a year. But are you okay if he dies? Emotionally, no. No, I'm not talking about that. Financially, yes. So what's your net worth?

Well, all in with our house, our retirement, probably about $1.6 million. Okay. And house is paid for? Yes. Kids are grown and gone? No million. Okay. And house is paid for? Yes. Kids are grown and gone? No kids. Okay. So if he dies, you've got $1.6 million, you've got to figure this out, and you're how old?

I am 53. Okay. I think you'll be fine, don't you? I think I'll be fine. I think we're both healthy, and we try to live a healthy lifestyle. Same thing in reverse, right? If you die financially after he quits crying, he'll be okay, right? Yes.

Yes, he'll be better off quicker than I will. Okay. But, I mean, he's got $1.6 million too, right? Yes. Yes. And the house is worth how much? The house is about at least $650,000. Okay.

So if you've got a million dollars and if it generates 10%, that's $100,000 a year. If it generates 8% or if it generates 12 and you left four in there for inflation, then that would be a – you know, you pulled off eight as an example, that'd be 80,000. So you can live on 60, 70, $80,000 a year, right? Yes, we can. We have no debt. I do have two horses, which is very expensive, but one of them is 25. So unfortunately, I'll have one at some point. Yeah. Can you live on 60 to 80 to 90 000 a year absolutely okay then you're self-insured and you don't need life insurance unless you just want it okay so basically it's okay to not pay the rest of the 18 years and just take the payout now

well there's not a payout on term life insurance. Well, maybe it's not term then because they say that we do get a payout. Well, then I definitely would cancel that crap. Okay. Yeah, it's garbage insurance. Then you've got whole life life insurance. You don't have term. Okay.

Yeah. It sounded expensive, so i'm not surprised i don't know what the coverage amount is but yeah i think we got your answer you're self-insured this is the ramsey show our scripture of the day james 122 do not merely listen to the word and so deceive yourselves. Do what it says. Vince Lombardi says, it is time for us all to stand and cheer for the doer, the achiever, the one who recognizes the challenges and does something about it.

Yes. There we go. It's almost like the man in the arena right there. It really is. Good stuff, man. Well done. Well done. Hey, guys, it's almost over, the August cash giveaway.

It's almost, it'll end in just a couple days here. All month long, we're giving away cash. You win one of our $500 weekly prizes or even the grand prize of $3,000. To increase your chances, enter daily at ramseysolutions.com slash giveaway. You can also get our best-selling books like The Total Money Makeover, Ken's number one bestseller, From Paycheck to Purpose, and Dr. John Deloney's Own Your Past, Change Your Future, his number one bestseller.

All of those are only $12 right now. And you can preorder Dr. John Deloney's brand new book, Building a Non-Anxious Life, which comes out October the 3rd. And guess what? You'll learn the six daily choices to break free from a life spinning out of control, from a life of anxiety. Plus, when you pre-order today for just $20, you'll get $75 in free bonus items. All the questions for humans

conversation cards are on sale for $12. All of this is happening in the store at RamseySolutions.com slash store. And, of course, to sign up for the free money, RamseySolutions.com slash giveaway, and there is no purchase necessary.

Must be a teen. Max is in Missouri. Hi, Max. Welcome to the Ramsey Show. Hey, how's it going, guys? Better than we deserve. Brother, what's up? Hey, so my wife and I are currently in baby step number two,

and I am a self-employed flooring installer. So we kind of just need some advice on maybe the emergency fund or what can we save for during wintertime when my work gets kind of slow and January, February, slow months and income is lower. What can we do or what advice do you have so that when those months come we can still be paying off debt okay you're you're installing floors in on the interior of construction right correct like carpet hardwood laminate so why does that stop in the winter it usually just slow. Like I'll have a week or two when every other day, you know, I won't have a job. And kind of we're just nervous on, you know, this coming next season what we can do to be prepared for that.

Okay. Have you got only one supplier of jobs? I mean, one vendor you work for? Mainly, yes. I work for one shop, but I also have a couple builders that, you know, keep me busy also. But yeah, mainly I work through one shop. Yeah. This is not a, I need more savings problem. This is a business problem. You need more business so you don't have dead spots.

I want you to be covered up and backlogged and people waiting in line to get you to install their floors. So you don't have these gaps. They shouldn't be gaps. You should be covered up all the time, except when you don't want to work because it's Christmas or something.

Yeah. Yeah, you need more sources. And if you can't figure out the sources, which you should be able to, you should be working like a dog right now to get that income on an average across. You have a couple of ways to do this, but more options is the answer here. It's not about savings. And I also say, I'll bet you have some other trade skill that you could bring to the table if for some reason, and again, I don't think this is the case, but if for some reason you weren't able to get more

flooring jobs, there's some other skill sets that you have where in the trades you should be busier than you could possibly be. Yeah mean uh uh now i mean grass cutting yeah slows down in the winter but installing carpet inside in you know where things are like warm and stuff it doesn't it you know building business doesn't stop in november december january i'll tell you an idea max that i've got i got a good friend who is running a business in the atlanta area dave he just got into it. And it's these remediation companies, you know, when there's a flood or something has happened, frozen pipes. So they come in and they do all the cleanup of the water. But they've got relationships with contractors to come in and actually do the

fixing work. He needs to be making friends with people that are in that business saying, hey, you need a good flooring contractor? I'm your guy. Yeah, one of those frozen pipes in the winter. That's what I'm saying. That could be your backfill. Okay, I'll go with that one. He's as busy as he can be right now.

Yeah, I'll go with that. And he's looking for good contractors that he can rely on. He's griping at me on the golf course. I can't find good contractors that will come out and fix floors. So I'm just throwing that out there to Max. That's where we go get more opportunity. Daryl is in Phoenix. Hi, Daryl. I can't find good contractors that will come out and fix floors. So I'm just throwing that out there to Max. That's where we go get more opportunity. Daryl is in Phoenix.

Hi, Daryl. Welcome to the Ramsey Show. Actually, sir, my name is Darnell. Oh, I misread it. I apologize. Austin actually typed it in correct. I screwed up. Sorry, Darnell. What's up?

That's okay, sir. That's very common. So, well, first of of all thank you for having me uh mr ramsey uh and uh uh you know i actually met dr john deloney down in dallas actually uh our uh i reaped of uh tobacco and uh alcohol when i met him but uh he was at a book signing in the at barnes and nobles in dallas but let me get to my question. So I'm trying to figure out a way to help my sister. My sister, her car went out. She has a car note on it.

She owes $12,000 on that car. She also has student loan debt of $20,000. And her income is $3,200 a month. Now her living expenses, she lives, she lives with her mother. Uh, we have different moms, but she lives with her mother. Um, uh, her living expenses, you know, you know, housing and utilities at 600 a month, food, 400 clothing, personal care, $100. Uh, right now she doesn't have transportation.

She was sharing her mom's car, but her mom's car also went out now. What's wrong with the $12,000 car? The engine seized up. She blew the engine. Yes, sir. At least that's what it sounds like. Oh, wait a minute. It sounds like.

So she's not taking it to a mechanic? No, she did. She told me the mechanic told her that the engine seized up. The thing is, she lives in Alabama. I live in Arizona. She lives in Alabama. Okay, I mean, I need to know what seized up means, because you mean she blew the engine is what it sounds like.

Okay. So it's a major repair, repair you think yes sir uh she told me she gave me a quote of uh it's going to cost her about eight nine thousand dollars yeah now i came up with i came up with three options uh i got a i got a truck i can loan her uh i ain't gonna lie i'm gonna have to put some money into it but you know i can loan her the truck the only thing is the truck got about 300 000 miles on it it's old now it runs though yes as opposed to her car which doesn't run okay what's the second option uh second option um it's gonna take me and what it's gonna me like, I want to say about six months, but you know, I can give her the money to, uh, um, put a new engine in, in, in her car. Third option. Um, third option is she pauses, uh, she's on baby step number two right now.

Uh, she could pause the baby steps and, you know, save money for a car. Okay. Cause right now she option pressure fourth option is you loan her your truck you guys all scratch some money together and you buy a used engine from a junkyard and you have a friend down at the church do the engine installation or an inexpensive mechanic do the engine installation and we fix this car for $3,000 to $4,000, not $8,000. $8,000 is either a brand-new engine or a rebuilt engine. She can't afford that in a $12,000 car.

Yes, sir. You don't spend $8,000 on a $12,000 car. Yes, sir. So loan her my truck. Scratch together the money, put an engine in her car, then take your truck back money put an engine in her car then take your truck back a used engine in her car an engine with 30,000 miles on it in a car that was totaled it's sitting in the junkyard and it'll be a tenth the car not a tenth but it'll be 25 of the cost and that because you just don't put a brand new engine in a 12,000 mile car or $12,000 car. That's not, doesn't make sense at all.

Hey man, thanks for the call. Ken Coleman, good show today. Thank you, sir. Guys in the booth, great work. The booth dudes are pulling off yet another great program. I'm Dave Ramsey, your host. 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, it's Ken. 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. Again, that's ramsesolutions.com and click Get Started.