The Ramsey Show - App - Put That Bad Advice in a Pipe and Smoke It! (Hour 2)

Episode Date: July 7, 2023

Jade Warshaw & Rachel Cruze answer your questions and discuss:  "Can I afford to go visit family while paying off debt?" "What are my best options to save for future life expenses?" What are your money milestones? "Should we lease a car if we only need it for a season?" Have a question for the show? Call 888-825-5225 Weekdays from 2-5pm ET Here's an EveryDollar deal just for our listeners: get a 14-day free trial PLUS $15 off your first year of premium. Click the link below and start budgeting today! www.everydollar.com/jade Want a plan for your money? Find out where to start: https://bit.ly/3cEP4n6 Listen to all The Ramsey Network podcasts: https://bit.ly/3GxiXm6 Interested in advertising on The Ramsey Show? https://ter.li/s64ye3 Ramsey Solutions Privacy Policy

МУЗЫКАЛЬНАЯ ЗАСТАВКА МУЗЫКАЛЬНАЯ ЗАСТАВКА Live from the headquarters of Ramsey Solutions, broadcasting from the Pod's moving and storage studio, it's The Ramsey Show, where America hangs out to have a conversation about your life, your money, your situation. I am your host, Jade Warshaw, joined by Rachel Cruz, host of The Rachel Cruz Show. If you've never checked that one out, be sure to check that one out as well.

We're taking calls all afternoon about your life, what's going on with your money, what's going on with these student loans. If you have anything about student loans, please call in today because y'all, I can go on and on about the student loan situation. And it's more because I want to help people, Rachel's not I don't want to shame anybody I want to help you guys because I get it some people are really feeling like oh my gosh what is going to happen these these these payments are coming back it's a it's a reality that's that's hitting yeah it's very emotional oh right very emotional I learned that yeah on all sides well yeah i mean there was

this carrot dangling out and so many people and i hate that that happened because rachel people's full hope was in the fact that maybe these loans could be forgiven and to just have your hopes dashed like that i hate that for people so if you're concerned about that give us a call 888-825-5225 but really you can call us to talk about anything you want to talk about as long as it's life money relationships don't just call talking about any old thing all right we got kayla from minneapolis minnesota guys i can't say these words minneapolis minnesota here we go what's going on kayla hi hi kayla how are you doing i'm good. My husband was like, you should call the Ramsey Show.

And I was like, I'm never going to get through. So thank you. Oh, I'm glad you did. Glad you're here. How can we help? So my question is, my grandmother is getting older. And my parents and sister are taking a trip to go see her. And they are encouraging me to go.

And I'm having a really hard time because we've kind of been, we're in baby step two and we've been babe-ish for a bit, but recently we've been more gazelle. And I'm, I'm really having a hard time like pausing to do that. And then I'm, I'm wondering if I'm going to regret it. So I don't know. I just needed some other perspective. How old's grandma? And is she in good health? 92. Oh, wow. Yeah. She's 92.

That's so great. And she's been in pretty good health. Yeah, she's older. Yeah, for sure. So Kayla, how much is the trip going to cost you, Kayla, out of pocket? I think probably around $500. That's not a ton. I'm mostly paying for the flight.

And then my parents have like the car and like the place to stay and everything all secured. So I just have to kind of get there. But I'm having they they are making a vacation out of it so they're going for a full week and so in order for them to like pick me up and me to go with them I have to be like close to their time frame and I'm having a really hard time with going for a full week because I where does she live now. Where does she live? Seattle area. Okay, well there's Ubers in Seattle so you could go I guess she's in

eastern Washington so she's five hours away from the airport. Okay. So you're saying it's a difference between basically your family being able to pick you up and take you to the airport, that sort of thing? Yeah, so they want me to fly in because they take you to the airport that sort of thing yeah so they're they want me to fly in because they're they're going to be in the Seattle area so they could grab me and then we

would drive for like five hours together and then stay there and then come back so I can shorten it by like a day I'm just I don't know I'm having a hard time spending the money on it but then I feel guilty because I feel like well you should go and see her okay and then I also have are you close to your wait are you close to your grandma do you have a like are you going because your family's telling you you should go do this or are you thinking like man I love my grandma this could be the last time I see her I want to go see her just curious I love her but I I haven't seen her in like seven years I would probably go see I would go see grandma too I would go Kayla but

what Jade's getting at is your motivation Kayla needs to be for you not to be guilt tripped by your parents to go and see her so I think it's a very honorable thing you know we just actually spoke to Winston's grandmother on FaceTime last night and she's 95 and I'm just like oh my gosh.

It's a treasure to still have family at that age living. So I do think Kayla, at 50 years old, will not regret taking this trip. So even on Baby Step 2, we say if there's a wedding and you have someone in your family getting married, your brother's getting married, you go cheap. You go cheap you go as cheap as possible don't go into debt and Kayla I would be honestly I would be curious I'm almost tempted just to get my phone out and start googling for you I would be curious a rental car rental cars are not that I mean maybe maybe $200 Kayla yeah for you to rent a car um to that. Or maybe even where she lives, you could do a one-way rental, which sometimes is more expensive.

But I would start to price out options and look. But I think, again, what Jade said earlier, I think is very spot on. I want your motivation for this trip to be for you, not because you're pleasing your parents out of some guilt, right? But if Kayla wants to go see her grandmother, who's 92, and that this is a great time to go because your grandmother who's 92 uh and that this is a great

time to go because your other family's going and all this we're great with that right if you just do it really inexpensively and you'll and you'll make the trip tailored to what makes sense for you not my family's doing this trip they're doing five to seven days i'm doing five to seven days i'm trying to be and then you're do you see what i'm saying and then you're having to coordinate with them and you end up doing things that you weren't going to do spending more money but if you're like I want to go see grandma and even the oh sorry that's okay if you're like I want to go see grandma for me this is what makes sense I'm going to get there on a Monday and I'm going to leave on a Wednesday you know what I'm saying make sure you're doing it for you so that you

plan the trip that makes sense for you and then you leave it feeling good about what you did there's no guilt there's no uh expectation that your family may have had from you. Yeah. And your flights, Kayla, you could even, you know, not feel like you have to fly the same airline your parents are flying in the same time. You may even price out the difference of airlines per time. It could save you $300 round trip. So so yeah i think you owning the trip more just for you from a logistical standpoint is going to make you feel not only just more in control but also you're going to have more control over your money and what you're choosing to do so i think that's that's important so i would go kayla uh but again i would do it more on my own

terms um and tell your parents that i mean i would like guys we're i'm we're getting out of debt we're doing this so i'm gonna go as cheap as possible i don't want you know i would like don't wait on me don't plan it around me just y'all do y'all's thing i'll do my thing yep yep and i'm just like i i feel like if we go for if i go for a whole week it's like a week of me missing work and then my husband asks him this is job. Yeah, don't go for a whole week. Don't do it. And I have a baby and I'm like stressed about being away from the baby. Girl, do not go for a whole week.

Go for the amount of time that makes sense for your life and your relationship. And being a mom is really, trumps a lot of this too. Like, right? If you're, if you have a new baby and you know, you're not like and that's become a priority than other things.

That's a very real thing too, Kayla. So a couple of things flying in the mix. Yes. We're never going to tell somebody to not go see their 92 year old grandma. Let's be real about that.

We're actually human. We have hearts unlike some people on the internet think. I just know some people were hanging on the edge of their seat like is Rachel and Jade about to tell her not to go see her dying grandma on the internet think. I just know some people were hanging on the edge of their seat like,

is Rachel and Jade about to tell her not to go see her dying grandma? Of course not. I know. Go see grandma. Like these things, like you said, when you're 50 years old, you're going to go, oh, I had that last moment. You know, like that's, those are things that you treasure for a lifetime. And money is important.

Don't get me wrong. But it's some things that are more important, like family. This is The Ramsey Show. All right, guys, you're listening to The Ramsey Show. I'm your host, Jade Horshaw, joined by Rachel Cruz. And we just love talking about money. We like talking about the things that nobody wants to talk about.

It's very rare, Rachel, that people want to talk about their debt, that they want to talk about how much savings they do or don't have, that they want to talk about the things that are stressing them out. But on this show, you can call in and we can open up the closet door, look at the monster, figure out what's going on and hopefully help you solve your problem. And that's the key. We're just here to to help you you are the secret sauce in the solution you are the one that's actually going to go out there and make those changes we're just going to give you a little kick in the pants give you some little advice to do so so if you want to give us a call call us 888-825-5225 and we're going to just help you out on your journey that's what we're here to do

all right let's go to the phone line. We got Joseph in Las Vegas, Nevada. Got that one right. What's going on, Joseph? Well, thank you, Jade Warshaw, for taking my phone call. Just a quick thing. To write cards with a debit card, you could use Turo. I use that all the time. Yeah.

Just a heads up. Yes. And I was calling in regards to a question regarding saving and investing. Um, so, uh, my question is, um, I had a family emergency about a year ago that's still ongoing and, uh, I haven't been able to work, but I've been able to get paid to take care of a loved one, loved ones who are sick. And, um, my question is about, um, the best strategy for saving and putting money aside for the future things that I might want, like a future vacation just to take for myself or things expensive, life expenses. I'm also in college, too.

Okay. a close family friend who I love a lot who said that, you know, he doesn't think the fact that I'm going to community college and paying cash for it is good. He says I should go to a private Catholic school. Oh no. Did you tell him where he can, that he can put his advice in a pipe and smoke it? You know, I want to tell him that because it. Go ahead and go ahead and tell him and tell him that i told you to tell him shoot joseph okay so are you a student in like a expensive college um i go to a community college i'm paying cash for so good you're still here oh i thought you took the advice and i was like oh no oh no he's doing right he's doing right okay good i'm so sorry i'm so thankful

joseph i thought we're gonna have to climb you out of some student loan debt from a private school. Okay, good. Joseph is the man. He's doing it right. Good for you, Joseph. Okay. Yeah. And I've always been anti-student loan. And, you know, my grandparents, they've paid off their house or Ramsey, everything,

except they like to use credit cards, which is one thing that I don't like. But I'm not in a position to tell them what and what not to do. I just live my life and let them live how they want. Joseph, how old are you? I'm 18. You're 18. Okay. And you are currently in community college and you're helping take care of some family members.

Is that what you said? What was the incident that happened that put you in this position? So my family members really got recently very sick. My grandfather had COVID, and he ended up in the hospital. And I'll just say it digressed very, very badly. My grandmother has always had arthritis, but she recently got diagnosed with cancer a few years ago. And so she was in and out of surgeries, and she has low back.

So it's kind of all kind of very bad. And you're put in charge of taking care of them. Where are your parents? I'm just curious. Actually, we've all been very fortunate enough to live all right next to each other. So my mom recently finished her master's in 2014 and moved to become, she works for the school district, which is here. It's not good. I don't know how it is in Tennessee, but not really. The way they treat their staff over there is not good, but she's working there.

Okay, so what caused you, Joseph, to be the primary caregiver? Was it something that you volunteered because you said, okay, I have the time because I'm just in school, so I can use this as like a part-time. And who's paying you to do this because you said you're getting paid? Yeah, that's a good question. I'm getting paid by them for giving me money to take care of them. Correct. Okay, I got you.

And they also help take care of my school and take care of all that stuff. Wow. That's amazing, Joseph. Yeah, that's incredible. Absolutely incredible. And very smart. You've got great, by the way, you've got great instincts about debt and paying for things, college.

Very, very good. I hope that you hear that coming from us. So how can we help you? You mentioned that you're wanting to save for the future. Can you unpack that just a little bit so us. So how can we help you? You mentioned that you're wanting to save for the future. You're wanting to, can you unpack that just a little bit so we can see how to best help you? Yeah, thank you. Yeah, thank you so much. Yeah, so I've always been kind of really good with money, but I just haven't had a direction on saving and what like the best saving strategies are for the future.

Because, you know, I personally, I think that, you know, as much as you invest, you should also save because, you know, you have emergencies. And so I want to know what the best saving strategy is for money. That's great. Well, sure. So I think you're exactly right. There is a difference between savings and investing. And so we want everyone to be completely debt free with an emergency fund of three to six months of expenses. So we consider that your emergency fund savings. So you can put that just in a high-yield savings account, have that there. And then when you look for long-term investing, that's where you're looking at retirement

funds like a 401k if your job in the future offers that, opening up a Roth IRA and investing in that. So those are two great investing options for the future. But but I would but I would encourage you, Joseph. I mean, you're 18. You have plenty of time and people in your stage of life. We really do encourage to it sounds so cheesy, but it's like the line of investing in yourself. Yeah, that you have, you know, a lot of life ahead of you, not just, you know, through college, through job change. You know, you may decide in three years, hey, I have this career passion and you get an offer in, you know, Seattle or something, right? And you end up moving. And so there's just a lot of change that can

happen between 18 and even 22. And so we always tell people to as much cash as you can have saved is going to be really the best bet instead of investing which we you want to get to later right and you're in your early to mid-20s and you'll get there but for right now joseph i would really focus on just saving that cash because even transferring to a bigger state school you may have the money to be like yeah i want to get my diploma actually from here because there's a special you know a type of school you want to go to or whatever the case may be it gives you options when you have money. It gives you choices. It gives you options. And if it's invested, we talk to a lot of people that call in and they think,

oh, gosh, well, I don't want to take that money out now to pay off debt because the market's down. You know, you're trying to time the market. Yeah. And having cash available at your age, Joseph, is going to be such a game changer. So that's right. Even coming out of school when the time comes, you know, obviously you're transitioning from community college eventually to university. That's going to be more expensive. And then at some point you're going to graduate and you're going to come out of school. Or maybe while you're still, you know, in college, you might have the opportunity to move into your own apartment.

Like all of these things, your situation has the ability to change. Yes. Greatly at, really at any point. So just keep your money liquid, keep it saved. And then you've, like Rachel said, you've got saving and the investing can come later just because of how young I am. And, you know, the, one of the most important things I think I've learned from your, your dad, uh, Rachel over the years is that, you know, you want to stay away from debt as much as you can. And I, and when he, when that family friend, you know, says things like, you know, a student loan is a good debt i just almost want to slap him in the face i feel that don't slap him it's so good joseph and honestly i'm telling you this isn't me just like puffing up this react this this fake reality the truth is joseph you're going to be a multi-millionaire come on you are like you're going to start investing very soon you're going to have the

cash for it you're working now you're a smart guy like you said you're staying away from debt so your income is going to come in and it's going to be all yours to help you grow more wealth and to be generous and give and to spend and enjoy life. Like that is so powerful. So powerful, Joseph. And at 18 years old, if you start that in your early 20s and you start investing, you are mathematically, you're going to be a multimillionaire. So we're rooting for you. Some of y'all old school listeners who have been listening and you're still on the fence and we're rooting for you some of the some of y'all old school listeners who have been listening and you're still on the fence and you're still doing the credit card game it's like oh i love listening to ramsey but i still have my credit cards take a lesson from joseph joseph

is taking all of us to school because he's a young cat and he's he gets it and so some of you guys are watching and you're in your 30s and 40s and you're still not sure if you're going to get on board with this you sure you're still deciding if it can work or if it can't joseph gets it he's doing it he's taking all of us to school so guys this stuff works if you work it he's going to be a multi-millionaire what about you you got the choice you get to decide it's totally up to you this This is The Ramsey Show. Hey, what's going on, guys? You're listening to The Ramsey Show. I'm Jade Warshaw, your host, joined with Rachel Cruz, also hosting today. If you want to talk with us, give us a call. The number is 888-825-5225. But before we go to the phone lines, I am so excited to talk about this, Rachel,

because this for me is like, all right, this is it. So a couple of weeks back, I guess it's already been a couple of weeks back, I made this post about when Sam and I were going through our debt-free journey, Baby Step 2. You know, of course, here at Ramsey, we're always measuring things in terms of the baby steps, right? So those are the milestones, right? You know, of course, here at Ramsey, we're always measuring things in terms of the baby steps, right? So those are the milestones, right? You hit baby step one, you get to baby step two, and you keep going. And those are those mile markers. But along the way, the journey becomes a little bit more personalized. And you start to create your own milestones throughout the journey. And I remember, so on the post I was sharing, I was saying, man,

when Sam and I were going through this, our first first milestone was can we just pay all of our bills just using our income because it was so tight and so that was like thing what like if we can just be a person that pays their bills every month with their income not using debt we are living like we're doing it we're on top of the world and And then it became, okay, that's great. Now, if we can be people who get this, I just wanted to be a person that never overdraws their account. Can we just make it six months

without overdrawing the account? Like that's the way, that's how bad it was. And so that became the milestone. And it's like, then you hit that and the next one comes. So I was sharing that on the internet. And one of the biggest milestones was, if we could just, Rachel, get to the point

where we can buy all four tires at once, just shell out $800 or $600, whatever it was. I'm Scrooge McDuck. You can't tell me nothing at that point, right? And so- I'm made of money at that point. I'm made of money. And so i made a money and so i told people i'm like tell me tell me your milestones i want to know what they are and so rachel what

people wrote it's so good i love it i love it so good one girl wrote she goes girl if i can buy lunch meat from the deli counter i made it i made it okay this is this would be me too i love this one not overthinking if i want guac at chipotle or not because i always say it's gonna be extra do you want it and it's like and it's like a dollar 99 should i note it but when you're like yeah put that guac on i'm good queso too pilot on doing good you're doing good yes when you start when you care about the calories more than you care about the money that's when you know it that's when you know it's right uh this one she says um girl when i can buy the paper the paper and the bathroom products in the same day as my groceries now i'm living i love it i love it love this someone said yeah biggest milestone going on a nice vacation paid in full i appreciate that that's some that's some savings

right there then the vacation doesn't follow you home in debt right oh i love this she says oh i love this one she goes my first milestone was making it to the next paycheck without having to resort to credit cards and i feel that yes i felt that in my soul i felt that because you know well sometimes everybody that uses credit cards is not using it just to go crazy and spend. Some people are really trying to just live, you know what I mean? Like survive their basic needs.

So I felt that. Totally. I like this one. When I could buy ribeyes at the grocery store just because we felt like it. Hashtag luxury lifestyle. It's so great. Or even this one. Okay. This one again, hit me hard. Randy Rainey. He says, putting the mortgage in the utilities on auto pay. Yes.

Living and loving it. And that one hit me too, Rachel, because to this day, I think I was talking to Dave one day about it. Before we never put anything on auto pay because it's like you don't know like something could happen something comes out it's the wrong time next thing you know you've overdrawn and then maybe something that something on auto pay then came out too and now you're overdrawn twice and these fees and penalties are hitting you and before you know it it's a different type of snowball yeah effect that's right and it it's like now in today's financial situation, I still have that moment where I'm like, if somebody says auto pay, I'm like, oh, no, no, no, no, no.

And then I'm like, no, you know what? Yeah, you go ahead and put that on auto pay and it's going to be all right. It's amazing, Jay. That's why I love you guys, your story. I mean, it really, it's like, it's just so, it's so impressive. It's so impressive.

And it's the true proof of like, you guys, all of this. All of this that we're talking about. I'm like, that it happens and it works. It's like just doing the program and showing it. I'm like, it's amazing. And that's what I love about even all of our hosts. Like, you know, Ken has a different story. I have a different story being like the second generation,

the kid, the second generation of your parents doing it, all of it. I'm like every person that sits here and all of you listening right now, everyone has a different story. You have your story. You're in a different place. But here's the consistent thing is believing that you can do it. Yes.

And that these milestones as deep as some of these feel for you, Jade, and as fun as some of these are, I think it and as fun as some of these are uh i think everybody relates somehow yeah absolutely and and there's just truth in owning where you are and deciding to make progress going forward because it may take longer for some shorter than others but all of these lifestyle right all this can happen that's right and so we want you guys i i have enjoyed this so much it's tickled me to read these so if you have one of those like milestones that's like hey jade when i hit this point i'm living my life please comment that put it in the youtube comments put in your podcast comments

or you can go on you know my page jade warshaw and comment i read guys if you want me to read the comments put them on instagram and i'll read all of them. But now don't fight me. I don't want to fight on the page, but go go put your comment in there. But what Rachel said is so true. At the end of the day, the way we get to these milestones is we've got to be intentional about our finances, right? It doesn't just it's not a magic trick that happens overnight, right? For anybody. I don't care where you're at.

Even if you're doing well financially you have a great income and you just want to do better about investing well jane we see studies still of people making upwards of 200 000 and they're living paycheck to paycheck that's right so i'm like it's your we really do learn yes does your income help you it's your shovel to go and like fill in the hole of debt if you need it or your shovel so yes it is helpful to have a bigger shovel obviously but also if you don't have the habits if you don't have the discipline to to do something with what's in the shovel then it's all gonna it's all gonna leave that's right being intentional regardless of where you are it is it's it's so key. It's so important.

And that's why, you know, when it comes to, you know, one of the classes we have here, Financial Peace University, a lot of times people will say to me, but is it only for people who are getting out of debt? Or is it only for people who, and I'm like, no, it works no matter where you're at in your journey, no matter what your story is. If you're somebody who has kids or doesn't have kids, if you're married, you're not married. It is a program that gives you the information. It meets you where you're at.

And some of the information you take for now, some of it you put in your pocket for later. And it's designed for you. You take this course. It's nine classes. And you will get something out of every single class. And we know that the reason that we're able to get comments like this of hey now i can order double meat at chipotle without checking the account right it's because you know rob lopez rc i can say his name because

i actually know him rob went through financial peace university he did he committed himself to the the nine classes he learned the. He actually then put it into action. Did something with that. Which is the, you know, and now he's like millions of other people who have changed their lives simply by taking a class and committing to it. And life's too short, you guys, to be so stressed. You know what I mean? And again, everyone's in a different situation.

All the things, we understand that. But also, that's not an excuse not to do something like this plan. I mean, honestly, it is the thing that will be able to help you understand where your money is, where it should be going, what you should be doing with it, and so that it doesn't stress you out. That's why we say financial peace, because we want that peace for you. We want you to sleep well at night. We want you not to feel so controlled and so stressed over money. And so we've seen people with every debt level, every income level.

And again, some people's journeys are longer, shorter than others. You know, the time is different, but it is possible. And that's the exciting thing. And that's why we do this every day, the show too. So if you're listening right now, I would encourage you to just dream a little bit and start thinking, what's your I'm living moment? Is it the next time the AC goes out? I don't want to stress.

I want to know that I've got $5,000 if I have to replace the AC. An emergency fund. Right. Okay. Start dreaming. Start seeing how your life would change if you put on a plan, if you got on a plan for your money, if you paid off your debt, if you had savings. Start dreaming because that's when you're going to start having the motivation to actually make these changes. Stronger the why, the stronger the try. This is The Ramsey Show.

Hey, what's going on? You're listening to The Ramsey Show. I'm your host, Jade Warshaw, joined to the right by Rachel Cruz. Guys, give us a call. We would love to take your call, talk about your life, talk about your money. And by the way, I know I probably speak for both of us when I say it's such a privilege that you guys call us to talk about something as personal as your money. Some of y'all are not even talking to your spouses about the money, but you're calling us to talk about it. So we do not take that lightly. Give us a call, 888-825-5225. And now we're going to Brian in New York City, New York. What's going on, Brian? How can we help? Hi, how are you? Thanks for taking my call. We're doing good. How are you? Pretty good. So I just got a new role at work with a bit of a pay bump.

And we're currently in the New Jersey area. And we're thinking, my wife and I, in about 18 months, moving down to South Carolina, where I'll become the sole provider, just much cheaper cost of living. And I work remote from home. And my wife would be able to be a stay at home mother with our three kids. Um, and the problem we're into right now is my daughter starts school in September. And so we need a second car. We've been dealing with one car. We just haven't needed a second one. Um, and so we need a second car. We have been saving the past year or so. We have the cash ready to go.

But there's a chance we, again, won't need a second car once we move down there because I work from home. But we probably will in a couple years. So I hate the idea of leasing a car. But we're curious to your thoughts on would it make sense in our situation to lease a car for like 18 months to then not have to travel down with it and especially if we don't know if we'll need it no i mean why can't you just buy a used car and sell it if you don't want to take it to north carolina when you go and i only say that because we would just oh sorry i only say that because leasing is the most expensive way to own a vehicle, not own it, operate it.

And you're just throwing so much money down the drain, the way the payments are structured and the way it's set up. It's a horrible, horrible idea. If I were in your shoes, I would buy something in cash. How much do you have saved? I wouldn't buy something expensive. I just buy something that's point A, point B b and when it's time to move to south carolina 28k or so um yeah you don't have to spend 28k unless you think you're going to want to keep it and drive it down when you go do you guys have any debt brian where are you guys at financially um no we we were debt free outside of the house right now how much do you guys make a

year uh i'm at uh 100k now and my wife is at 92 so we'd be getting down to the one awesome yeah i mean i'm with jade i'm like i'd go get a used car because someone else has already taken the major hit of it being depreciated you know maybe maybe a four or five year old car um and the used car market still is a little wacky so honestly in 18 months it's probably not going to go that much down and follow you um so yeah so then i would just sell it and and you guys have a great income and so i would even say keep it for now and then when you then sell it and then when you guys get to south carolina kind of see how your life is and see what you have saved then maybe get a nicer car right If it's a car you're going to be keeping

for a while, you guys can afford it. So yeah, I would do that. Is it $28,000 above and beyond an emergency fund or is that all the money you guys have saved? That's all in what we have in savings right now. Completely. Okay. So I would partial out, you know, I mean, I would honestly partial out, Brian, more like on, I would honestly partial out Brian more like on the six month because of this move that's possibly coming. Um, so that may not leave you with as much. So if 28, if you have 28,000 saved, how much do you think, how much is like a month's worth of expenses for you guys? Um, in New Jersey right now, probably about $3,000. $3,000? Yeah.

Okay, that's great. Yeah, yeah, yeah. So yeah, I would keep that as part of that as the emergency fund. I mean, around 18, so that leaves you about 10 to get a car for your wife to take the kids to and from school for 18 months. So it's not going to be a pretty car. It's not going to be one she's like super probably proud of. But that's okay because it's going to get you guys from point A to point b and you're not going into a contract like a lease and you'll be happy to have it when you go from one car to two cars you're just happy to have a second vehicle yeah let's you know so i'm thinking i'm thinking she'll

be like this is great i don't have to we don't have to do that coordination that is required when you have one vehicle right right? Yeah, definitely. And this will be for me to drive just to drop off the younger kids and my mother-in-laws. But my thought process was that it would roughly cost us, I did the numbers, about $7,000 for the lease.

And that would just leave us with more money to put towards the new house. Well, it leaves you $7,000 with the lease, but then you don't have something at the end of the lease. Yeah, that's true. Yeah, I'd rather put money into something where I have some ownership at the end as opposed to just empty payments. It's like renting.

You're just renting a car. Why do that? Yeah. Thank you so much. Did we convince you? Yeah, I think I'm'm convinced or even take your math brian and do the 7 000 and then you're you got seven thousand dollars like you haven't like lost much because you'll sell the seven thousand dollar car and then there you go i don't know like versus

seven thousand dollars just being good down the drain that's right at least like what jade's saying yeah all right awesome thanks brian thanks for the call Yeah. I hope that, I don't know that we fully convinced him, but I hope that we did. They have. Guys, when it comes to those leases, they are terrible. What they fold into that payment, how they determine what your payment is with the cost of capital and the wear and tear. And what you said is absolutely right. Unless you go through the whole thing and buy it out at the end, you're left with nothing said is absolutely right unless you you know go through

the whole thing and buy it out at the end you're left with nothing yes yes terrible car stuff y'all it's like it's my least favorite debt if i can say it you know what i mean i'm like i it because it's a depreciating asset i'm like it's going down in value so whether it's leasing or it's car payments mathematically speaking it is like oh it's, oh, it's such a drain. It's such a drain for something with four wheels to get you from point A to point B, you know? Oh yeah, and you, I mean, we've had this conversation before in viral proportions.

You know how I feel about car payments because they are what keep, in a lot of cases, not necessary in our guy, Brian, he's just trying to move. But for a lot of people, their car payment is what's keeping them from everything they want yeah financially in life yeah because their car payment is somewhere between five and seven hundred dollars you have two of those for just one yeah but for just one and they're wondering why I can't pay my student loan when it comes due

in September or you're wondering why I can't put 15% away for retirement or you're wondering why I can't seem to pay these bills off and I'm like you have probably somewhere from five to a thousand dollars in car payments if there's two yeah that's real money and you're giving that away just so you can have a what a 2023 camry for a camry rachel not a camera future away for the camry okay it's not worth it it's not worth it and so that's why we're always telling people man just either pay off your car early pay it off as quickly as you can within the debt snowball and then when you go to purchase a car again buy it in cash yes and like what we're saying i love i was talking to ken on

this show and he was looking for used cars for his teenager and he was like the amount of car between five and ten thousand there are so many yeah they are so many and some of them are great are great cars and honestly if you're not a car person you don't know the year that something's made like you oh yeah like you don't know and yeah and maybe it's a not to be stereotypical maybe it's a guy thing i don't know i guess some girls and maybe it's a, not to be stereotypical, maybe it's a guy thing. I don't know. I guess some girls love cars, but I'm like, it just, and again, I like a great car. Me too. I'm not mad at, we're not mad at nice cars.

Although, can I tell you a truth? But still, I'm like, it's like, it's just, it's just wild to me of what people will pay in car payments. It's not worth it. For a car. You made such a good point. Most people have no clue. Sam and I finally have two vehicles, but one's a 2012 and one such a good point most people have no clue my uh sam and i've got finally have two

vehicles but one's a 2012 and one's a 2013 and we bought them in 2018 and in 2023 so they they were never brand new cars but when my my brother was over at the house this weekend and he saw our newer vehicle and he goes oh that that car is so nice. And I'm thinking to myself, it's a 2013. Like, it's so old, but it's it's well kept, but it's in good condition. And look, get get it, get it in black. If you get it in black, everything looks much better. If it's an old car, get it in the color black because it's still shiny. It looks better. Don't get red and definitely don't get like a weird like mustard. Just get black. I'm telling you, that's the way to go. It's timeless is what Jade is saying.

It's timeless. No one will know the difference and you'll have something what is known as money in your pocket. What a life. What a time to be alive. All right. That does it for this hour of the show. Be sure to join us next time. Guys, this is where we're getting it done.

This is where we're getting it done. This is where we're making changes. This is where things happen. So be sure to tune in next time. This is The Ramsey Show. Hey, it's Rachel Cruz. If you love the show and want a deeper dive on your money journey, we have a weekly newsletter that gives you trending and helpful articles and tips on following the Ramsey way. Just go to ramsesolutions.com today to sign up for our newsletter.

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