The Ramsey Show - App - President Biden Won't Forgive Your Student Loan Debt! (Hour 3)

Episode Date: February 23, 2021

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Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studios, it's the 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. Anthony O'Neill, Ramsey personality, number one best-selling author of Debt-Free Degree is my co-host today. Open phones at 888-825-5225. So coming into the opener, Anthony and I were having an off-air discussion that I think we probably need to bring up for everyone else. It's a good – I didn't realize it. James, my producer, had sent me an article from Forbes I was reading at the break at the top of the hour.

And that President Biden had said in a town hall earlier in the week that he will not forgive student loan debt with an executive order. He doesn't think that that is constitutional and correct. A little bit shocking. Very. I'm personally happy to hear that. Yeah. But that means it puts it on Congress to pass. And he said he won't support the $50,000 forgiveness, only the $10,000 version.

Yes. But the $50,000 AOC and Elizabeth Warren are asking for. It's a $650 billion price tag. Now, let's keep that in. Let's take this out. So there's $1.7 trillion. Yep. In student loan debt.

So that will leave about a trillion. Yes. If you forgave $650. We still have a crisis. Still have a crisis. Still have a problem. Yep. And as I've said many times it is

intellectually dishonest to forgive student loans while you're still making them if they're so bad and people are getting destroyed by the student loans and we have to come to your rescue you poor little people and washington's gonna be there for you. And we're going to help you out. Yeah. If that's the case, then you need to stop making the loans. Stop doing that. And then also, too, Dave, and this may sound selfish, but I worked my behind off to pay off my student loans. It may not have been a lot, but it was still $10,000.

So where's your money? Where's mine? Exactly. You know, I worked hard. And it's not just me. I'm pretty sure we have millions of people listening right now. Like, hey, I paid off $25,000, $100,000. You know, our words are and it's not just me. I'm pretty sure we have millions of people listening right now. Like, hey, I paid off twenty five thousand, a hundred thousand. You know, where's my money?

So, you know, this is interesting. We already know the Republican Party is not going. They will not forgive the loans. And then there are some Democrats who are like, I don't know, neither. Yeah, because they're going to have people like you. They're going, oh, hello. Exactly. I'm going to be mad at you because I want my money back.

Exactly. You know, and so, yeah, I think the I don't know if they got the votes to do it in Congress. I don't know what this may be a political move on President Biden's part. Oh, because if he does it, he takes all the heat. Yeah. If he puts it off on Congress and then they don't do it or they do do it, they get the heat. Yep, and it's not on him. They get the heat from the left.

If they don't do it, they get the heat from everybody that paid off their loans and want my money back if they do do it. And so, yeah, that's maybe political cover. That might be real good strategy on his part. Because if it does go through, then he can say he has something to do with it. Yeah, but he didn't feel like he has something to do with it yeah but he didn't feel like it was constitutional to do it with an executive order and i'm i i was shocked though dave when he came back and said that i'm not going to do 50 000 yeah i i was shocked when i read the article i said oh oh okay so yeah right yeah all right so aoc is not in the white house

after all that's what it comes down to. Wow. Very interesting. Very interesting. It's not just political. It is financial. It is economic. And there's an issue of, you know, you have to, if you're going to be sincere, and I don't disagree that student loans are a huge problem. Yeah, yeah.

You and I are working diligently to help people with their student loans. Yeah, yeah. And here's my thing, though. If they're a huge problem, quit making them. And that's my thing. Before we talk about forgiving, that is a conversation. Let's talk. Let's talk about how do we stop it from even happening in the future? Yeah. Once we fix that problem moving forward, then let's come up with a game plan of how we can help the ones who we've talked them into doing something stupid. But until then, why? Because we'll be right back at $1.7 trillion if we forgive this amount within the next five to ten years.

Well, you're going to have to do it again. Exactly. Because you didn't fix the problem. Exactly. You just treated the symptom. Yeah. No, no, no. The symptom is a bunch of people up to their eyeballs and can't breathe.

We have to stop. The problem is making a student loan debt. We have to stop. And it's out of control. It's too high. It's too much. It's gone on too long.

Right. And it's just gotten to be where it's ridiculous. Yeah. But it's very interesting. I know I'm really old at times when I see things happen in our world that I never thought I would live to see dot dot dot happen it sounds like my grandpa used to say i never thought i'd live to see the day that was gonna happen i'm that guy now i'm that guy going i never thought i'd live to see the day

that they'd actually consider this crap you know that's what and they are really considering i mean i've said on this show it'll never happen right. Right. It just shows what I know. Nothing. I don't know nothing. Nah, Dave. But I mean, really, I never dreamed that the political climate would get so far left and so far towards socialism, the government providing all your goodies, that they would actually be seriously considering doing this. And then it looked like it was a done deal. Right.

And now it's not again. Right. So it's very interesting. Right. it was a done deal right and now it's not again right so it's very interesting right so the moral of the story folks is this anthony and i the ramsey personalities of the ramsey organization have committed our lives to helping you believe and understand the truth about how life works, which will cause you, based on those beliefs, if you will act on those beliefs, it will lead you towards abundance. Yeah. If you act on the beliefs that Ken Coleman teaches you about careers, it's going to lead you into a better career.

If you act on the beliefs that Dr. John Deloney shares with you about mental health, it will lead you to a more mentally healthy situation. Absolutely. I'm really enjoying his podcast. Oh, yeah. And if you believe these things to not go cause to take personal responsibility for your life which is a key yes for you to become a to live abundantly absolutely to live in wealth yeah and to live a good life you have to take responsibility for your marriage no one's going to fix it for you. You have to take responsibility for your freaking kids. Nobody's going to fix them for you.

You know, God help the people that are in classrooms today, because some of you are piss poor parents, and you send wild animals into these classrooms and expect these teachers to manage them. I mean, it's ridiculous. Dave's going in. You know, I mean, because, but it's not bringing abundance, right? It's not. It's not. Dave's going in. You know, I mean, because, but it's not bringing abundance, right? It's not. It's not, Dave.

And it's, you know, and, you know, I was with a lady the other day that works with teachers. She is a friend of ours that is a world-class expert in the education field. And she was saying, you know what helicopter parents are, parents who helicopter in and fix all their kids' problems. Now they've gone beyond that. They have lawnmower parents. I didn't know what a lawnmower parent is. A lawnmower parent cuts the grass out in front of the child so they have an easy path. Oh, man.

That's different than helicoptering. Lawnmower parents. They're cutting the grass ahead of them so they don't even have to walk on tall grass. I mean, it's just out of control. See, none of this personal responsibility is going to lead you to the greatest dignity and the greatest abundance in your life. Don't wait on anyone else to fix your life. Yeah.

It's your job. That's it, Dave. You've got a lot on your plate, a job, your home, your marriage, and your growing family. While you're enjoying the present, you can't help but think about your future and your finances. As you explore your options, consider Christian Healthcare Ministries, or CHM, for your health care. Their generous maternity program and budget-friendly monthly programs have been a blessing to members welcoming children into their families. Visit chministries.org slash budget to see if it's right for you. That's chministries.org slash budget. Here at Ramsey Solutions, we want to transform so many lives that disruption spreads like wildfire across this country. Imagine a world where it's weird to have a student loan

because everyone's assuming the best way to get an education is to pay for it. Imagine a world where the majority of people pay cash for their cars. Where the credit card is the cigarette of the financial industry. Where you know how to handle marriage. You know how to handle parenting. You've got a career that has meaning. At Ramsey Solutions, this is why we have 1,000 people in our company to create digital products and services, events and books to transform your life.

This is the goal we have to disrupt, to do it at such a scale that we disrupt the toxic culture in America. So many people have just completely lost their way. If you want to join us on that crusade, we're currently on the hunt for software engineers, Ruby on Rails, Java, C Sharp, front-end tech, if you're a UX designer, an SEO, content marketing specialist, we'd love to talk to you. We're on schedule to hire 360 people in the year 2021, and a lot of them in the digital space. If you're a senior level developer, we actually go home at night.

We don't work you 80 hours. You actually go home and be with your family. And when you're writing code or you're showing somebody how to write code or you're writing a piece of content or you're doing a piece of creative, it's always being used to change someone's life. It's work that matters. If you want to find out about the jobs we've got available, go to DaveRamsey.com, click on Dave's hiring on the right-hand tab,

and I will tell you it's very tough to get a job here. Sure is. It's easier to get on with the freaking FBI. Because we don't want crazy people in this building. We want people in this building that care deeply. They're good at what they do. That are people of high character, high moral fiber. Because that's who I want to work beside every day.

I don't want to work beside sleazies and crazies. Yes. In a lot of places you have to. Here you don't have to. It's a group of very smart people of high character that work their tail ends off and then they go home. Yeah. And we don't work 80 hours a week. Facts.

We go home. And so if you're interested in that, the interview process is difficult. I'll just tell you in advance. Yeah. And we don't work 80 hours a week. Facts. We go home. And so if you're interested in that, the interview process is difficult, I'll just tell you in advance. There's a guy sitting out here that just got hired to start some Monday. He's moving stuff into his third-floor apartment. We just met his buddies who moved him in. That's good friends right there, moving into your third floor, man. But he's just been through the interview process, and he's just shaking his head like, yeah, yeah, yeah. head like yeah it's enough already and you know what though dave i appreciate our interview process because it even helps me to know if if this is a good fit you know so i mean yeah i mean i was on a

pod taping a podcast with a friend of mine a while ago and she said um you know you guys are freaky over there and i was yes we are and she goes i mean like you know, you guys are freaky over there. And I was like, yes, we are. And she goes, I mean, like, you know, how many times do people just stand up and walk out of the interview and go, peace out? And I said, oh, they do sometimes. Oh, yeah. Because we are freaky. Yeah. I mean, we don't really want to work with crazy people. No, sir.

You know, I don't want the ladies in this place to be worried about sleazies, sleazy guys. You know, it needs to be safe here. And if you can't be that guy, then you don't need to be worried about sleazies sleazy guys you know it needs to be safe here and if you can't be that guy then you don't need to be in here right you know i'll just you know and it's easier to find that out during the interview than it is to make you move across the country and then i gotta fire your butt because you're sleazy right you know don't do that and and so yeah it's a it's a lot it it it is it's actually protecting because, you know, there was a point in my life before I met Christ years ago as an adult that if I had interviewed at a place like this, I would have been going, you people are nutty. I'm not working there. And I would have walked out the door.

Oh, yeah. Because I would not have been a fit. That's interesting. I could not have gotten a job at 22 in this place. I'm not sure I could have gotten a job in this place ever, but it's a good thing I own it. But, yeah, it's tough to get on. But, I mean, if you're interested, guys, and you want to do something that matters, just check Dave's hiring. We're hiring positions of all kinds, but certainly tons and tons of digital and creative positions. Click Dave's hiring at DaveRamsey.com.

All right, Janice is with us in Colorado Springs. Hi, Janice. Welcome to the Ramsey Show. Hi. Hi, Dave. Thanks for taking my call. Sure. I have just my house.

And I just refinanced it for a 15-year loan. Good. I want to pay extra on it. Is it best to pay the extra along with when I pay the regular mortgage or to pay it like two weeks later? Yeah. Do you do it online on their site? Yes. Do they have a blank on the site that says principal only, additional principal?

Yes. Then it doesn't matter when you do it. Right. Okay. Because it will get credited correctly because a computer is doing it. Yeah. In the old days, we used to tell you when you would mail a check, are you old enough to remember

mailing a check through the mail? Oh, yes. Mail a check through the mail for your house payment. If you were going to add a check for, if you were going to add to that amount for extra principal reduction for paying off your house faster, we would tell you to send a separate check in a separate envelope because the character opening it might not be smart enough to figure it out. But the good news is the computer is smart enough to figure it out but the good news is the computer is smart enough to figure it out and if it says extra principal online or additional principal or whatever and you put it in that blank

it's going to go to principal they really that's not a hard piece of programming for them to do they did that right i promise you well what my my thing is is does it change if i just make the house payment and then two weeks later make an additional payment? Does that drop the interest rate or the interest down? Once a month. Once a month. Whatever you do in that month is going to affect the next month. So if you do 10 extra payments in a month, it's only going to affect the next month. If you do one extra payment in a month equal to those 10,

then it's going to affect the interest rate the next month exactly the same. It's not calculated daily. It's calculated monthly. Gotcha. Okay. Yeah. Unfortunately, I haven't really done any of your baby steps, but like I said, right now I only owe on my house.

Sounds like you have. They just weren't mine. They were yours. I have one credit card, and it's frozen because I froze it. Okay. How much money do you have in the bank, Janice? Huh? How much money do you have in the bank before you start paying this extra money?

I have $10,000, just a little over $10,000 in my savings. I have a little over, I think it's $75,000 in my Roth 401k. How old are you? 63. Good for you. What do you make? Right about 45. Yeah. You've done very well. Very. Yeah, and just

continue to concentrate. I'd raise that emergency fund up a little bit, and I definitely want you to invest more aggressively, not just pay extra on the house. I want you to be continuing to add. I want that $75,000 to go way up in the next few years, okay? Okay. You've done really good.

You've done, I mean, she's done a lot with a single lady making $45,000. Yeah, yeah, yeah. I was about to say the same thing. Wow. This is, I'm shocked. Boy, that's not bad. Yeah, you're doing a great job. I'm very proud of her.

Yeah, excellent job. I mean, she's been fighting a tough battle probably there. Absolutely. So, okay, folks, here's the calculation. Here's the calculation. Let's pretend you had, for calculation purposes, an easy number is 3% on your mortgage. Okay, that's a quarter of a percent a month. Divide 3 by 12.

Okay, so how much per month is your interest? A quarter of a percent a month. Divide 3 by 12. Okay. So how much per month is your interest? If you have 3% annually, 3 divided by 12 is a quarter of a percent. Yes. Okay. A month. That is going to be calculated on how much principal you owe at the end of that month. A quarter times.00025.

Yeah. Okay. Or however many zeros there are. a quarter times.00025. Yeah. Okay, or hire me, zero, zero. And so if you've reduced the principal, that next month more of your payment is going to go to principal and less to interest because your interest will be less that following month. With a traditional FHA, VA, or conventional mortgage, that's how it'll work. Anthony O'Neill Ramsey Personality is my co-host today. Robin is with us in Colorado Springs. Hi, Robin. How can we help?

Hi, Anthony and Dave. I'm calling on behalf of my elderly parents who are in a financial pickle and need help on how to advise them. They have a $320,000 paid-for home, but no savings and no retirement, a $98,000 HELOC, $11,000 in credit card debt, and their monthly income is about $4,000. Expenses are about $3,000. Expenses are about $3,200. So my father wants to get a $125,000 mortgage to pay off all of his debts. And I know that's not what you would advise, Dave. So how can I help them?

How old are they? Early 80s. How's their health? It 80s. How's their health? It's good. My father works a part-time job and earns about $1,100 a month doing that. In addition to the four, or the four is the total? The four is the total. Okay.

Well, it's likely that you don't need a $120,000 mortgage. It looks like it's $109,000. Well, yeah, yeah. No, it's $109,000, isn't it? Yes. So why the other $11,000? I'm not sure. Probably just the psychological cushion of some kind.

And I would guess his payment would be less on that if he did that than the current. Yes. Monthly, right now, they're paying only on the interest on the HELOC, and it's about $325. Oh, so the payment would go up then? Well, right, yes. So I'm not even sure if they could afford the payment. So why does he want the payment to go up? Well, that's a good question.

I don't know that he's thought about that. All right. This is your dad and your mom. Yes. It's not mine um but mathematically from a an actuarial table which is what a life insurance company uses to rate probability of someone passing away mathematically really what we want to do here is put something in place that they can hang on right it's not like we're going to turn the corner on this and they're going to move into prosperity it's just to keep them from having to move out of their house.

Right. Yes. So I guess the question is, what gives them the most room in their budget and keeps them from having to move out of their house? Is it remaining where we are, or is it getting a $110,000 mortgage? No, we're not going to borrow more. And so, but I, you know, you can run the numbers both ways, but I bet that HELOC is going to be cheaper monthly. You're not making any progress,

but I'm not really trying to make progress at this stage of the game. Right. Yeah. I'm really just trying to let them stay in their home, okay, from an emotional standpoint. Yeah. Yes. stage of the game so i'm probably that heloc may have a variable rate and it may have a call on it and that could be dangerous if it has like a three-year call and suddenly the mortgage company decides they want all their money right that might put them in a pinch he might be thinking about that call that balloon payment that's coming up on that thing or he may be concerned interest rates will go up and price him out of the market so i I guess I would dig into it and go, okay, if we get a mortgage, exactly what is the

payment going to be? If we don't get a mortgage, what's the payment going to be? That's number one. Because I want to minimize the payment, which is weird for Dave Ramsey to say, because the goal here is not really to get it paid off. The goal here is to let them stay in their home. Because in five years, statistically, you know, we're not going to be dealing with this, right? Right.

That was cold. I'm sorry. I understand. But it's just a math thing. It's not just a math thing. It's anything but just a math thing. But I'm trying to think, Mom and Dad, I want them to enjoy the last five to ten years or whatever it is by not having to move them i mean if we were trying to prosper we would move down into a house and pay cash for it if we were trying to prosper right

yeah but this is just protecting their their standard of living and letting them stay there and pay the minimum payment i don't know anthony any thoughts no dave i'm right there with you i tell you this credit cards bother me. They've got to cut those things up, and that means they're not on a budget. And they haven't stopped the bleeding. That's exactly right. And then he's trying to borrow his way out of debt.

And that also indicates he's not stopped the bleeding. And so we do need to get... If we're going to go with my plan, it really is not a good plan if they're going to continue to dig the hole. Yeah. Because if he goes and gets a $110,000 mortgage, $120,000 mortgage, and they don't quit overspending, they're going to be right back here in three years, two years. That's exactly right. And I've tried to tell him that, but it's hard to get that plan across.

So, you know, the biggest thing is you have to stop the overspending. If 4K is 4K is 4K, you're not in Congress. You need to live on 4K, including these payments. And cut the credit cards up and never use them again and get debit cards and live on a written budget with your spouse. And otherwise, Dad, you need to sell the house and you need to move down in-house. And that might be the cattle prod statement, like, you know, like, if you're not going to quit overspending, you're going to lose the house. Mm-hmm. But, you know, because, you know're not i don't how long ago how long

over what period of time you think they ran up that 11k oh goodness uh probably just a few months they got this heloc uh not not more than maybe two years ago okay He cannot go get a new mortgage, even if it's cheaper, because it's a pattern of him trying to borrow his way out. They keep overspending, and then they go get another loan. They overspend, then they go get another loan. And then we go get another loan, and we go get another loan, and we go get another loan. They have to stop the overspending. So I would say don't get a mortgage because it's the continuation of his negative pattern here. Yeah. Okay. I honestly have no idea where all that money went. Yeah. Well, they're probably spending $6,000 a month.

Yeah. And so now the next question is relationally, how are you going to get your foot this far in the door? Right. Because you're going to have to sit down and do a budget with them if you're going to help them fix this. And you're going to have to point out to your mom or whoever it is that can't stay out of freaking Target that this has got to stop. Yeah, you've got the right person pointed out there. And dad's trying to take care of her. Dad's the Band-Aid. Yeah, he's got the right person pointed out there. Uh-oh. And Dad's trying to take care of her. Dad's the Band-Aid. Yeah, he's an enabler.

Right. Okay. Well, I think it'd be a great thing if you guys can create a conversation where there's a budget and you're walking them through putting the budget together with both of them sitting there and let her have the revelation that she's getting ready to cause them to lose their home if she doesn't stop this crap. But that doesn't come from you making that statement. It comes from you continuing to ask questions like, Mom, if you continue to do this, how

do you think this is going to end? Okay. If you don't stay on this budget, Mom, do you realize that we're going to run out of money? Can you see that? And let her see the actual numbers. People can feel numbers when they're sitting and looking at them in relation to what they're doing. But when she's just like over there, you know, being her four-year-old self at Target, then it's not in context. But when you put it in context with the rest of the situation, it gives you a jolt.

Does that make sense? Yes, it does. And so but again, that's not with you coming in there and shaming them. It's more you asking a bunch of questions and put a bunch of facts in front of them. And the facts will smack them upside the head. That's a counseling technique. Let the facts do the hard work, the emotional work on these,

on them. It's a very difficult conversation to either 80 year old parents. It's very hard, but it, to the extent you can get involved is to the extent this is going to get fixed. It's going to get ugly if it doesn't get fixed. Wow. Our scripture of the day, 1 Corinthians 9.24.

Do you not know that in a race all the runners run, but only one receives the prize? So run that you may obtain it. Teddy Roosevelt said, it is hard to fail, but it is worse never to have tried to succeed. Ronald is with us in New York City. Hi, Ronald. How are you? Hey, Dave, Anthony. Thank you so much for taking my call. Sure. How can we help? So me and my wife are currently tackling debt.

We're in babysit two, and we have a few expenses, big expenses coming up in the next few months. I graduated this past May with a degree in accounting, and my salary is $70,000. And my wife and I got married this past August, and we're expecting a baby in the next four months. Yay! Congrats, man. A lot going on, man. And the other expense, the other thing is we don't own a car.

We live in New York City. We always went through a train. So once we have, before the baby arrives, is we don't own a car. We live in New York City. We always went through a train. So once we have, before the baby arrives, we're looking to get a car. So I'm struggling to... Do you have any money? So I have $18,000 saved up. Oh, that's good. I have $42,000 in student loans.

I started with $42,000. Now I have $31,000. And my wife doesn't have any still loans. She has full scholarship, and she's currently in school. She doesn't work. I'm the only one working currently. Mm-hmm. So I don't know how much to save up.

How does it work? How much to tax all the debt? How much to save up? I'm sorry. How much debt did you say you had? Currently $31,000. And you all the debt, how much to save up. I'm sorry, how much debt did you say you had? Currently $31,000. And you have $18,000 cash. Sure.

And you have no car because you've been using public transportation and now with a baby you don't want to. Yes, and when I needed a car, my parents lived 30 minutes away by public transportation, so I would take their car. Okay, so help me with your lifestyle situation on when you would actually utilize the car. How much would it be used? So since I'm working from home and it won't be used as much. I mean, it would mainly be used when you had the baby in the car.

Correct. And where would you be taking said baby? Either to the doctors or I've been told by a few friends that you go to the doctors a few times. And also, usually we go out for the weekend with my family. Okay, so it might be driven five times a month. Yeah. Grocery shopping. I'll use it at night. At night, I'll be using it using it more yeah but you don't have

to have it for that you were going at nights to go on public transportation if it's you correct so the actual need for the car is about five trips a month correct around that around that yeah because of the baby correct yeah otherwise you were doing fine without it because most lots of people in new york city do not own cars it's not that unusual at all i know several people don't even have a driver's license that live there so um uh yeah so you know what i'm going to buy is a minimal car that's going to start when I need it to start, but it doesn't really need to be that much, about $5,000. Absolutely. And $5,000 is generous.

I was going to say about $3,500. And then when baby comes, you need to get the rest of that money towards the debt, and let's get this debt cleared up. Yeah. So what's the recommended amount that you guys say when it comes to when you expect a baby to save up? All you can. Yeah. So what's the recommended amount that you guys say when it comes to expecting a baby to save up? All you can. Yeah. All you can.

Yeah. But you're in an unusual situation. Part of you having a baby is you need this car. Yes. And so I would take five of the 18 or less and buy a car, a reliable minivan or four-door car of some kind, whatever you want to get. And you can get a lot of car for $5,000 if you'll shop carefully. Where are you going to park this thing? So I don't really live in New York City.

I live in Brooklyn. Okay. So it's much more easier compared to new york city yes yes that's gonna because i mean a stinking parking spot in the city can in manhattan can be more than an apartment yes okay that's good so five thousand dollars man that that's your that's your max yeah okay what that if you spend more than, let me tell you what you did. You used your baby as an excuse to buy a car you wanted. Yes. Because your need for this car is five trips a month.

That's your actual need. And I really figured out this $15,000, $18,000 for a car. Until me and my wife decided decided after listening to you, we just started listening to you. To go towards your debt, right? Correct. Okay. After the baby comes.

Yes. So I'd buy a car for $5,000. I'd leave the $13,000 sitting there. I'd pile up as much as I can pile up on top of that. And then when baby comes, I would take it down to $1,000 and restart your baby steps and attack that debt. And then let's get the rest of that 30,000 bucks it'll be about 15 at that point cleaned off and uh as fast as you can get it cleaned off and

then once that's cleaned off you build your emergency fund you're working your baby steps but yeah i get the car i get the car purchase and i'm not you know but just don't use this as an excuse to buy an 18,000 car which is what you were about to do. You said earlier, and then you stumbled into the YouTube or podcast world or something, and we interrupted your plan. So it is a different world where there's that kind of public transportation and where it's quite the norm. Yes, it is. Versus most major cities in America, you wouldn't even be having this conversation. Yeah, you would need a car. even be having this conversation. Yeah. You would need a car.

But New York, nah. Yeah. But that's very interesting. $18,000 at his age. I'm pleased with him. Brittany's in Houston. Hi, Brittany. How can we help?

Hi, David and Anthony. Thank you for taking my call. Sure. My husband and I have a fully funded six-month emergency fund, and we have no debt except for our mortgage, which we still owe $86,000 on. Okay. We are saving 15% of our income to retirement, and right now we're working on paying our house off early. Okay. I was actually just offered a new job in a new city that's out of state, but it's a temporary position. It's a fellowship for two to three years. And so we only plan on

renting while we're there, not buying a house or anything. We really don't know where we'll end up after that two to three year period. And so my question is really what we should do with our current house. Whether we should keep it and rent it out, which based off of comps in the area would be about $1,800 a month, or if we should sell it and pocket the money and invest that. What's your fellowship in? It's in molecular virology. Say it one more time. Virology.

So I study viruses. Okay. And so obviously you're a medical doctor. Yeah. I'm a PhD. A PhD. Okay, so you're doing research. It's research.

Yes. A fellowship. Okay. Good. Good for you. And there's no for sure chance you're coming back to your current city. No, not a chance.

Yeah. Not once you finish just that. You're going to be super valuable. Right. I think you need to concentrate 100% on the fellowship, not on being a landlord. Okay.

I think your focus should be singular. This is an important opportunity for you. It's beyond important. And it's actually quite an honor as well. it's you obviously have an incredible intellect and uh so yeah i i don't want this distraction of some idiot changing his harley oil in your living room back in houston while you're on the other side of the country trying to work on saving the world yeah from viruses and um so no i think we need you focusing on your fellowship.

All of us do. Absolutely. I agree, Derek. So, yeah, I would sell it if I were in your shoes. You'll get a plenty nice house when you do make the final location that you're going to land in. That's long-distance landlording, bad plan. I wouldn't do it.

Not even consider it. Yeah. Not even. Good stuff. Thank you for what you're doing, though. Absolutely. We need more of you. Absolutely.

And good analysis on, hey, we're only going to be there for a couple of years, so we're going to rent there. That was a good decision already, having already made that going in. Now, will she be able to stay stable, though, once she finds that? Oh, yeah. When she finishes that, that's going to just increase her value in the marketplace dramatically. Wow. Yeah. Pretty impressive. Good stuff. That puts this hour in the books. Thanks, Anthony O'Neill, James Childs, and Kelly Daniel in the booth. I am Dave Ramsey. We'll be back with you before you know it. In the meantime, remember, there is ultimately only one way to

financial peace, and that's to walk daily with the Prince of Peace. Christ Jesus. Have a friend or family member that needs a daily dose of Ramsey advice in their life? Let them know about the Ramsey Call of the Day podcast. It's a quick hit of advice about life and money in under 10 minutes. Check out the Ramsey Call of the Day podcast wherever you listen to podcasts.