The Ramsey Show - App - Quit Making Out With Bank of America! (Hour 1)

Episode Date: June 15, 2023

Dave Ramsey & George Kamel answer your questions and discuss:  "Will paying off student loans hurt my credit?" Why Roth investments beat traditional, from the blog: What Is a Roth IRA? "Should I move out on my own to be closer to work?" Have a question for the show? Call 888-825-5225 Weekdays from 2-5pm ET Join a Personality-led FPU class. Click here! 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 Learn more about your ad choices. https://www.megaphone.fm/adchoices Ramsey Solutions Privacy Policy

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. George Campbell, Ramsey personality, co-host of the uber-popular Smart Money Happy Hour that he and Rachel Cruz do as a podcast on the Ramsey Networks. He's my co-host today. Open phones here as we talk about you right in front of you.

It's your life, baby. Let's talk about it. The phone number is 888-825-5225. That's 888-825-5225. Anthony starting off this hour in San Francisco. Hey, Anthony, what's up? Hey, Dave, how are you? Better than I deserve. How can I help?

Yeah, well, first of all, happy early Father's Day. And my wife, well, I started listening to you about a year and a half ago and I got my wife, um, recently new wife in like into you as well. So we're both on the same plan and have the same head on. And my question is, um, we want to purchase a house within the next year or two. And we, the only debt we have right now is student debt that we've been saving over the last year. And my question is whether we should pay it off all now, but wondering if that will affect our credit score with trying to purchase a home within the next year. George, you did this. Yeah. Living this out, I've paid off student loans and I bought a house without a credit score.

So the question I think you're asking is how will it affect it in the meantime if I'm in that weird in between? Because when you pay off your student loans, is that all of your debt? Yes, that's all our debt. Before he goes on, let me ask you a question. Do you have enough money in the bank right now to pay off the student loan? We do. We both do.

Okay. So you can just write a check and be done today today and then you want to buy a house about a year from now correct okay making sure i have my facts right okay so your emergency fund will you have that in place already or will you need to build that up after you pay off this debt? Yeah. So I guess it's kind of scrambled. Total student debt between both of us is about $56,000. And we have about $70,000 in our savings. And we also have together about $20,000 in individual account with Schwab. Cool. Okay, good. So that'll leave you with about $34,000 if you cash out what's in that account.

That'll leave you $34,000. Let's call your emergency fund somewhere, is it $15,000 to $20,000 for you guys, three to six months of expenses? Yes, that's about right. Okay. And then you've got a little starter down payment fund with the rest of that money. So you've got about $20,000 towards your down payment, and you've got a year to finish saving up, right? Yes.

Okay, so we're going to tell you to pay off your student loans today. When you get home tonight, go, honey, we're getting ready to be debt-free. Watch. Push this button. Okay. Okay, now, then how are you going to get a house? So then in 6 to 12 months after you pay off your debt, that credit score will disappear once you close all your accounts. And then your credit score will disappear.

Now, there's a chance you get the house and they run the credit and you still have a credit score. And it's probably still going to be a good score. And that's fine. You can still get a house that way. But there's really no, your credit score is not going to go down to, you know, 600 all of a sudden because you paid off your loans. Do you have any credit cards open? We do, but we paid off all of them for each month. Close them too.

That will keep your credit score open. What we're trying to do is have zero credit activity, which will make your credit score completely disappear in six to nine months. Zero credit score sets you up for manual underwriting, which is where they just check your job, check your deposit, like we used to back in the day when people had sense. Back in the old days. Back in the day when people had to actually qualify for a mortgage,

and a monkey can give you a mortgage now by looking at a number. Hoo-hoo, credit score, hoo-hoo. But, yeah, we used to actually make sure people had the money to pay the bill and stuff and it's called underwriting the loan manual underwriting is what it's called now as opposed to not underwriting it and so uh that's what george did he went with a zero credit score into churchill mortgage and got a mortgage on his first home did i have that right yeah and there was anthony there's going to be so many friends and family that go, you're crazy. It's going to be so much more expensive. It's going to take forever. It's going to be impossible. Don't listen to them because they've never done

it. And so I'm telling you, it's not going to be that difficult. It's not going to take a lot more time. There's going to be a few more extra documents. And as long as you stick to that 15-year fixed with at least 10% down, you're going to get a really great competitive interest rate. With Churchill Mortgage. Not all mortgage companies know how to do this, Anthony. Yes. So you can't run over some stupid butt place like Bank of America because they won't know their butt from home. My lender said they won't do it.

You've got to stick with one that actually knows what they're doing. Yeah, you've got to get with somebody like Churchill. Because we've endorsed Churchill for almost 30 years and because I've told people to not borrow money Churchill has obviously system-wide learned to and managed their whole process to being able to do manual underwriting because a lot of Ramsey people don't have a credit score because all of us got rid of our debt and our credit we don't use credit or debt but now if you keep those stupid credit cards open you may end up with a 650 and it's going to screw you up. So you can't half-butt do this, Anthony.

You've got to decide, is you or isn't you? And you've got to lean in and push all the way through. So ish will get you in a middle ground you don't want to be in, and I don't suggest that. If you're going to do that, then just stay in debt, son. Yeah, this idea of the credit score is hilarious to me. And once you get the mortgage, there's no reason you would ever need a score at all, even though you don't need one for the mortgage. Because the only reason people hang on to it is, what if, Dave, what if we need to go get a credit card so you can build up this number so that you can get a car loan so that you can build up this number so that you can get a student loan so that you can build up this number

so that you can get a home mortgage because you need this number and i would teach you to worship at the altar of the great fico because i would tell you that fico was your great provider and that your life on the planet will be somehow substandard if you don't have this number. It almost sounds like revelations. Yeah, this is conspiracy level theory right here. And it's the only number that we obsess over more than our weight. Those three digits.

Man, we are so obsessed. We brag about it. We the culture, not you and me, we. Dave and I, it'd be a really sad time bragging. You don't even obsess over weight unless it's a lack of it. I don't share those numbers, Dave. Okay.

And my credit score is sadly going to be low. I would share some of my numbers with you, but it wouldn't help. Either one of us. I'll take one for the team, Dave. You can donate some to me. But it really is a wild thing that our culture has become so obsessed. Here's the interesting thing. I have to teach this and have for 30 years.

You could get a million-dollar inheritance. Your FICO score doesn't change one penny. It is not an indication of financial well-being or financial health. It's an indication mathematically. The algorithm by which they used, the math they used to build the FICO score is 100% based on how much you play kissy-face with the bank. If you don't play kissy-face with the bank, if don't play kissy face with the bank if you're not making out with bank of america you're not getting a fico score i mean this is not hard

people if you if you if you get a million dollar a year raise at your office today everyone will wonder why and your fico score will not change one point and you won't care about your fico score then anyways it won't change one point It's not an indication you're winning with money. You can be broke butt deeply in debt and have an 800 credit score, which as a matter of fact is about the only way to have an 800 credit score. This is the Ramsey Show.

George Campbell Ramsey personality is my co-host today. Thank for joining us America we are so glad you are here today's question of the day is sponsored by neighborly your hub for home services as the weather warms up neighborly can help you find local service pros like the grounds guys five-star painting and mosquito joe to turn your outdoor space into your favorite space it's a great company find the help you need at neighborly.com today today's question comes from chris in missouri i've heard some people say that when it comes to budgeting that i should only live on 50 of my income save 25 and invest 25 that's dumb is it practical for me to only live on half

my income and is this the best way for me to only live on half my income? And is this the best way for me to begin saving and investing? Who are these people that say this? Who these people are? They said and I heard are horrible financial planning firm. Wow. Okay. So whoever these people are, they're going real aggressive on all fronts. So we recommend investing 15% once you're out of debt. There's no real savings goal beyond that other than your normal goals and your emergency fund. Have that in place before you invest. And then as far as your expenses, it's a great thing to learn to live on less than you make. There's no certain percentage. It's all very variable on your life circumstance, your family,

your cost of living, all of those things. But you have to live on less than you make or you end up in debt or broke and bankrupt, one of the two. I mean, but yeah, or both. You'll be okay if you live this way. I just think it's a tough goal for most people. That's just weird, though. I mean, I don't know who came up with that. That doesn't work.

So I will tell you, George, that when we were laying out the baby steps, we started with $1,000, a little starter emergency fund. Then you get out of debt. You build your full emergency fund, three to six months. Baby step four, save 15 15 of your income for retirement you know five as kids college so we have these very specific buckets that you're investing in naming and giving admission to the dollars uh back when i was putting all that together one of the things i read was a wonderful quote from the uh uh there a great awakening, a great revival that

swept across America in the frontier days. John Wesley, the Wesleyan, the father of the Wesleyan church, the Methodist church. And he said famously that if you give 10, save 10 and live on 80, you'll always be okay. And of course, you know, that's not course you know that's not really that's not a bad formula but we decided to instead give very specific goals to you know tithing for those of us that are christians that's what he was referring to but but on the giving side but on the other side very specific goals and very nuanced and so at baby step two we teach you to save zero and put it all on the debt until you get out of debt so that you get rid of the payments so you got more money to invest and to

give and so it's kind of a almost our thing's more of an intermittent fasting thing right there we go you know you're just before the trans day did i just say something modern that's how hipster davis scary right he was doing it before it was cool. Yeah, that's it. Jane's in Kalamazoo, Michigan. Hi, Jane. Welcome to the Ramsey Show. Hi.

Thank you for taking my call. Sure. What's up? Well, I've been listening to you for a little while now, and you seem to favor a Roth IRA over a traditional IRA quite frequently. I know the differences. I'm wondering why you tend to favor the Roth, and I could tell you why my financial advisor

originally put all my money into a traditional, if you want to hear that. Well, it's possible that your financial advisor fell in the same hole that other financial advisors fell in and couldn't get out. And that hole was, in order for the traditional to work out ahead of the Roth mathematically, you have to be in a lower tax bracket dramatically at retirement than you are now. A dramatically lower tax bracket, which, by the way, means you haven't got any money. Because if you've got $5 million, your required minimum distributions at 70.5 are going to put you in the same tax bracket you're in now.

So you're not going to be in a lower tax bracket. And so theoth absolutely mathematically kicks the traditionals but and here's why if you take 200 a month from age 25 to age 65 40 years and you invest that in a decent growth stock mutual fund you're going to have two and a half million dollars in there however only 96 000 of the $2.5 million is actual principal that you put in. So if you did a traditional in that, you would have gotten a tax break on $96,000. You would have not paid taxes yet on $96,000, but you'll pay taxes on the entire $2.5 million as you pull it out.

If instead you did this with a roth you would pay taxes on the 96 000 and zero taxes on the rest of the two and a half million so there's no way that the traditional even comes close to the roth mathematically does that help you well um that's what my must be why my financial advisor went that route, because, yes, when I was – I'm retired now, but when I was making a decent salary, I was obviously in a higher tax bracket than I am now that I'm retired. And so he's moving slowly every year a certain amount from the traditional into the Roth to still keep me in a very low tax bracket. No, that's good.

That's a smart, that is a smart move. But he assumed that you weren't going to have enough at your required minimum distribution because, you know, in my example, you got a tax write-off on $96,000 and then you still end up paying the taxes on it when you pull it out later. And so it just doesn't make sense at all now um when ross first came out they really took the nerd population of financial planners and blew their brains out i mean they their minds they just were in a hurricane they didn't know what to do and i was one of them i spent numerous hours crunching numbers trying to figure out this thing and here's the other interesting thing

george is when you compare apples to apples what we would all do in those days is we were trying to do the proper math calculation so if you're going to say all right a hundred dollars going into a roth requires because you got to pay taxes that's net of taxes so to put a hundred into a r, you actually have to make 130, right? Yes. So we would say, all right, 130 going into a traditional or 100 going into a Roth, because that's a correct set of mathematical assumptions for a math nerd. And if you're a financial planner, you usually are a super math nerd, right? Now, here's the problem with that.

That's not what people do they put in the same amount that end up putting the same amount in regardless of the tax situation that they forget that taxes have already come out i've already got the taxes out of my roth but i'm still going to fully fund the eight thousand dollars to six thousand dollars right yeah i'm going to still max the thing out i'm still going to put the exact same percentage of my income into the Roth 401k at my work, even though it's net of taxes. I mean, it took more money to get that in there than it did to do that in traditional. But no one ever goes, you know, I'm going to put 80 into my Roth instead of 100 into

my traditional. They don't reduce it. They just put the same amount in. Yeah. And so you end up with a Roth. We cheat you. We trick you into saving more. By accident. You didn't even know it. They just put the same amount in. Yeah. And so you end up with a Roth. We cheat you. We trick you into saving more. By accident.

You didn't even know it. We trick you. And no one's called in saying, Dave, I did Roth like you told me to. I got too much money in retirement. What do I do? I've never had anybody. It's a good problem to have. You know, I followed your plan on getting a match first and then getting all the Roth

I could get and then doing traditional. And I ended up with millions of dollars and I hate Dave Ramsey. I have never had that complaint. Never. And on top of that, there's no required minimum distributions on the Roth IRA. So that's a big bonus as well. And when I get to retirement, I don't want to be worried about tax brackets and how much income I can withdraw. I just want to live and give like no one else and not have to worry about that. So Jane, where you have ended up today, you're getting good advice on the gradual move so as not to bump your tax bracket because whatever you pull out from under the traditional move it to the roth is not going to be subject to required minimum and it's going to grow from this point forward tax free but you're not you're

doing you're moving it gradually so as not to bump up a tax bracket and that's good advice the advice that got you here however is a bad advice you should i wish you were all in roth right now you'd be in much better shape you wouldn't have any of this discussion going on and you probably have more money so but but it's not the end of the world you did good and you've retired you got a chunk of money and you and so you and i got the opportunity to talk theory and that's awesome i love it i love it i love it i love it so the rule is rock paper scissors but except there's only one way to go okay match beats roth 100 match before you get started you can't beat you can't beat that math right beats roth roth beats traditional so do all the

match you can all the roth you can and only then do you do traditional this is the ramsey show george camel ramsey personality is my co-host today in the lobby of ramsey solutions on the debt-free stage ruben and andrea are with us hey guys how, how are you? Good. Good. Welcome. Where do you guys live? English, Indiana. What's that near? It's about an hour west of Louisville. Okay, cool. Yeah, I know right where you are. Yeah, very cool. Welcome to Nashville. And how much debt have you guys paid off? We've paid off $252,852. Way to go. How long did that take? 48 months. Wow. And your range of income during that four years? We started at $150,000 and we're ending at $220,000. Wow. What do y'all do for a living? I do construction. I own my own business with my dad and his brother. And then I work as a problem manager for a agriculture financial lender.

Ah, very good. Good for you guys. So what kind of debt was the $253,000? Heavily student loans, a tiny bit of medical debt, and then our mortgage. Oh, you paid off your house? Yeah. Looking at weird people. Yep.

Very nice. What's the house worth? Our property's worth about $450 right now. Excellent. And how much have you guys got in your nest egg, your 401ks and Roth IRAs and stuff? Probably around $200 or so. Very good. You're going to be Baby Steps Millionaires soon.

Yes. Yep. Well done. How old are you two? I'm 29. I'm 32. You know, a paid-for house. Yes.

Weirdos. Extra weird. Feels good. Ios extra weird i love it i love it well done okay so what happened four years ago you must have got married we did we did it was right around time we were getting married that we started this steps i was we were over at one of her friends houses and they were talking about dave ramsey and i didn't know much of it steps i was we were over at one of her friends houses and they were talking about dave ramsey and i didn't know much of it and i was on facebook at the time when i get home you pop up on my facebook ads click on it watch the video and then i started listening to your podcast and it's pretty much game over from there oh so uh andrea he got addicted huh he did he very much did I'm sorry what was your first reaction to all this when he was like hey you got to listen to this Dave Ramsey guy yeah well I mean I get excited pretty easy so I was super on board like he he seriously came home

and said we need to cut up the credit cards and we literally did that same day and then I don't know it probably didn't even take a week later and i was like i don't know what we're doing this is a lot i just jumped in the pool i'm not sure i can swim yeah deep in literally two years before we were talking about her student loans they made you after she graduated college they made us basically a lot amount of money you know to pay each month towards it and it looked like it was going to take us 20 years basically it's the plan we were on and then we it took us no time after that yeah you just give you hope that you can do it yeah and you knock it out in 48 months house and everything while we're at it. Mic drop. That's wild.

You went from a 20-year plan to a four-year plan with the house. What made you guys push on through after the consumer debt was gone? I'd just say, why not? We came this far. Yeah, exactly. Wow. While we're at it, we got the momentum. Push it all the way through.

Wow. So what do you tell people the key to getting out of debt is you're 29 years old you have paid four house you're almost millionaires already um i'd say communication we yeah we tell all our friends all the time that it felt more like marriage counseling than a financial plan because it that communication piece was the biggest thing yeah and budgeting helped a lot too like we were just spending money on stupid stuff we didn't really need and what's the dumbest thing you bought when you're doing stupid stuff that's a good question it was just more like just like we had uh like

netflix hulu we had all those things that like even way more i don't know yeah those automatic subscriptions that would just take money out and you have to look at it and be like, do we need this? You don't care what it is, just fill a buggy up when you go to Costco, right? Yeah, exactly. Yeah. Wow. I was just reading a stat that 51% of those who make six figures are paycheck to paycheck. Right.

Which is just wild. And you guys were those people. Yeah, we were those people. We make good money and it's all just disappearing. Yeah. What were the tactical things you did to actually get control once you started looking at this? The monthly meeting.

Yeah, monthly meeting was very much so. That made us stay on track. And especially like I was the spender and Ruben was the saver. So making sure we stayed together and communicated and stuck to that. Because that was, I mean, that was hard. Like you very much had to wrangle me in it. Yeah, it was rough at times, but I had to do it. What was the one biggest fight you remember?

Going out with friends. We had to slow that down a little bit. Yeah, very much so. That was the main thing. That was hard we our biggest chunk we paid off the like 90-ish thousand between February 2019 and April 2020 whoa right in it that was in the thick of it and then COVID and shut down like that was it was a tough time yeah yeah it's very hard hard for everybody but yeah it's hard to be sacrificial in the middle

of that mess yeah way to go you guys excellent excellent work okay and you got kiddos yes we do are they here they are here okay we'll bring them up here let's get them in the shot okay what are their names and ages uh ruby he's about to be two and then rory she's about to be two. And then Rory, she's about to be one. All right. Very cool. Oh, good looking guys. What a great family. Those kids don't even know what their mom and dad have done. Their whole family tree has changed.

I'm so proud of y'all. Well done. Hey, we've got the Live and Give box for you. That's the Total Money Makeover book, the Baby Steps Millionaires book, both number one bestsellers for you to read or give whatever you're going to do there and of course financial peace university as well you can use that or give it away too so way to go you guys ruben and andrea ruby and rory from english indiana 253 000 paid 48 months making 150 to 220 count it down let's hear a debt-free scream three two two one i love it

so george a buddy of mine was telling me he was looking at Twitter. I don't look at Twitter, as you know. It's full of crap. And he said, you know, half the people on there are like, Dave Ramsey doesn't know how to make people millionaires. He goes, you make people millionaires all the time. And of all the things they want to come at you for, that's what they chose? I mean, isn't that funny?

Because those guys right there, I mean, they're 29 years old. They're almost millionaires. We put people on the air all the time that have just said, I followed your plan and now I'm a millionaire. Yeah. Look at that. I don't know how much more social proof we can give them. It's not for rich people.

It's for poor people, Dave Ramsey stuff. Dave's for broke people. I think you're an idiot if you say that. I mean, because the actual data is that we may have made more millionaires than anyone else in America. I mean, we didn't do it, but we showed more people how to become and they did go do it then you know so because the trick here is this listen hey what's the number one cause of divorce in north america today money fights money problems what'd she say marriage is better communication what's the

number one thing communication three different times yeah she said i'm the spender communication communication accountability we had to learn to work together we had to hold each other accountable communication marriage is increased debt is gone thought they were going to be under the thumb of the student loan debt for 20 years and no four years later while we're at it let's just pay off the house too. It's amazing. I'm so proud of them. They're neat. Wow.

Amazing, amazing heroes. And I hope there's other people out there who are going, we make over $100,000 and yet we're broke with payments up to our eyeballs and subscriptions we forgot about. And we thought we were going to pay off debt maybe 20 years from now. We'll retire one day. And instead they took control. Along comes Reuben and Andrea to bust your little idea. Yep.

Those little kids will do that to you. And they cash flow those babies in the middle of all this. Well, just drop that in there, why don't we? Crazy. Yeah. Way to go, guys. So very cool. Listen, when you take control of your own life in a world that tells you you're a victim,

you're what's called a hero. They're rare. They're rare. It's someone who stands up throws her shoulders back and says not me i'm not a victim i mean because there's plenty of people out there will tell you that you're stuck that's easy to do people like us well our millionaire study days people like us what the crap does that We found 97% of the millionaires we studied believed they had control over their own financial destiny. Well, isn't that interesting? Well, I mean, once you've ridden a bike, you ask people that know how to ride a bike,

is it possible to ride a bike? Yes. Most of them would say, yeah, I think we can ride a bike because I like to do it fairly often. This is The Ramsey Show. in 48 months also we were talking to them at the break went through financial peace university see and he said he never misses a podcast you can listen to this podcast and know all the answers and not do it and you'll still be broke and stressed and no wealth why because knowing what to do with your money isn't the problem doing it is what you have to do you actually have to do it yeah knowing that donuts will make you fat means you have to quit eating them,

not just knowing it, right? I know this from personal experience. I can tell you. Okay, personal finance is 80% behavior. It's only 20% head knowledge. The proven way to change your behavior is get in a system like Financial Peace University. It's the most well-known, most uh actually most effective uh personal finance class in history yeah really 10 million people have been through this this is why this class has worked

we it's like having a personal trainer you got a coordinator that's a superhero that's in your corner they're going to hold you accountable they're going to love you encourage you when you're scared show you what to do and become, you know, in a sense like a coach, right? Hey, Financial Peace University, sign up at ramseysolutions.com slash FPU, ramseysolutions.com slash FPU. Brandon is in Jackson, Mississippi. Hi, Brandon. Welcome to the Ramsey Show. Hey, Dave. How are you? Better than I deserve. What's up? So my question is, should I live closer to work, renting an apartment, buying a clunker vehicle,

as I hear so many times, or should I keep paying my 2023 Honda Civic off and drive two hours Monday through Friday to work, an hour to, an hour from. I don't know why these things necessarily go together. I personally cannot imagine driving that much to work. My commute is 12 minutes, and I would change my life if it was two hours. So why do you want to drive that far? Why does that sound appealing? I mean, you could live close to work and have a Civic.

Right. So they're not mutually exclusive. Yeah, there's more to it. Yeah, I guess so. Yeah, so I am 30, and I do still live with my parents, and that's kind of the thing. It's like, well, I don't think I'm making enough for a mortgage or anything. And I'm thinking, well, maybe I need to have them. Maybe I need to rent somewhere, or I'm not entirely sure.

All right, let's catch back up. How old are you? 30. Okay, and what do you make? I make about $46,000 a year. How much was the Civic? Civic was $25,000, and my parents paid it all. My parents paid it, and I'm paying it back $500 a month.

Oh. Dude, that car is a large portion of your world. So you're saying the other option is we sell the car and get a clunker and then go live on your own closer to work? Yes. Yes, I was trying to communicate with you earlier. That's a great plan compared to your life right now. You're chained to a car car and it's making you live with your parents when you're 30 and having a multiple hour commute yeah there's nothing in

this nothing in this story is fun there's no fun here no yeah i mean i'm not sure how big of a clunker you have to do but you definitely need to get rid of this car regardless of where you live because it's more than half your annual income. You have too much tied up in car. And, yeah, I think you already know what you're supposed to do. You just wanted us to tell you. Yeah, it's a reliability thing. No, that's not what I'm talking about.

That's not what I'm talking about. I think you're ready to not live with your parents you're 30 yeah i am you need to move you want your dignity yeah right now your growth has been and what's keeping you from doing that is the car right yeah so what they thought was a blessing actually actually has caused them to have a 30 year old in their basement so it's not a blessing so um because you know that they there's a part of them that wants rid of you and there's a part of them that wants you to stay forever that's all parents we don't want our children to leave we love our children assuming they're functional and not crazy and all that but i mean most of us love our kids and we would we want to be around them i i love my grown children i've got a you know kids in their 30s right and grandbabies i love them all i don't

want any of them living with me though now i'm done with that i figured out i can i figured out i can love them better when they're not there it's amazing how that works yeah move out get rid of the car get you a cheaper car get you a a better life. Two-hour commute sucks. Big car payment sucks. Living with mom when you're 30 sucks. Let's undo the sucks, man. Really. What do you think?

I'm with it. And, Dave, I've got so much flack lately. I've been uploading videos on my YouTube channel about car buying, car leases, how dumb they are, how your car payment is costing you $6 million in wealth. And the little whiners don't like it? Well, they go, you can't get a use. Oh, oh my gosh he wants us to die in a fire on the interstate oh my god driving these used cars like listen dying to fire in the interstate you drive a tesla come on yeah i'm already living on the edge yeah i mean you're like you're tired you're dying on a fire in the interstate looking for a place to happen so i'm just brave i know you are

you have great courage but this idea that a used car is somehow way more unreliable than your what's interesting is if you buy a brand new car and you have it for two years do you have any idea what you're driving a used car how is it possible that all used cars are unreliable that's a dumb butt statement that's dumb especially cars as well as they're made today the quality of vehicles today i just saw they have a 200 000 mile civic and it's still a great car they sent me a video of this toyota that had 1 million miles on it and it was still running that but yeah but it was impressive this idea that if it's over 100,000 miles. You could change your oil. Hello. Goodness gracious. Change your oil. This is not rocket science.

But, I mean, I'm going to die in a fire on the interstate. What kind of wilting snowflake comment is that? Well, it's hyperbolic. I'm going to die in a fire on the interstate. You are a drama freaking queen. They catastrophize everything. And worse than that, you posted that on a YouTube video that was someone else's. What? Jeez.

I know. These are the YouTube comments that I love to read, Dave, just to rile you up. I think I can hear your mother's helicopter blades in the background. Eat something safe and reliable. No gluten. I'm just saying. Oh, my gosh. Wow.

What a time to be alive. I telling you man geez i am i am turning into that get off my lawn guy and we're all here for it you're here to watch it only helps the ratings oh my gosh but here's the thing if you're going to buy a used car people and dave you've been saying for years get the beater car get the beater car well yes the beater cars are more expensive than they were you may not be able to find the get the beater car, get the beater car. Well, yes, the beater cars are more expensive than they were. You may not be able to find the $1,000 beater car. It may be a $5,000 beater car. So is your income.

Your income's gone up. And get a pre-purchase inspection for $100 so you know you're not buying a lemon that's riddled with issues, and you'll be just fine. That's all it takes. But I'm done with this excuse that i need a thirty five thousand dollar car because the five thousand dollar one is going to end me in a fire on the interstate burn you it doesn't make it doesn't check out just admit that you're justifying a bad purchase that's okay be honest with yourself the wussification of america oh my gosh you're gonna die in a fire on this i'm gonna be in a van down by the river

that's now a dream for many people dave that's not even the worst case scenario yeah i talked to a lady i heard the other day young lady she said she's a digital nomad oh that's a neat word for homeless but it's digital now so it's digitally homeless yeah i'm digitally a nomad yeah i'm not just a nomad. I'm now a digital nomad, which means your avatar is actually homeless too. I'm going to become that old man going, kids these days and they're digital nomads. Can't get nothing. Hey, guys, listen.

We don't want you. If you'll drive like no one else. I didn't drive over here in a $5,000 car. I drove over here in a really nice car. I parked next to him. I can vouch. It was nice. It was fun.

I really wanted my commute to be a little longer today because it's that much fun to drive that freaking car. But I drove pieces of crap for a few years so that I can drive anything I want now. Drive like no one else so that later you can drive like no one else. Live like no one else so that later you can drive like no one else, live like no one else so that later you can live like no one else. One definition of maturity, emotional, psychological, and spiritual maturity is the ability to delay pleasure and not be whining the whole time. Wah! Call the Wah-ambulance.

This is The Ramsey Show. Hey, George Camel here. If you love the show and you want a deeper dive on your money journey, we've got a weekly newsletter that gives you helpful articles and tips on following the Ramsey way. Just go to ramseysolutions.com today to sign up for the newsletter. Again, that's ramseysolutions.com to sign up for our weekly newsletter.