The Ramsey Show - App - Shift Your Priorities When You Have to Relocate (Hour 3)

Episode Date: June 6, 2019

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Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studios, it's the Dave Ramsey Show, where debt is dumb, cash is king, and the paid-off home mortgage has taken the place of the BMW as the status symbol of choice. I'm Dave Ramsey, your host. This is your show. Thank you for joining us. Open phones at 888-825-5225 aaron starts us off this hour in cincinnati hi aaron welcome to the dave ramsey show thanks so much how are you better than i deserve what's up so um i just finished my freshman year at a regional college campus and I'm currently getting through school debt-free

and I have about $16,000 in my savings account and I'm working throughout the year and I make around $1,000 or $2,000 a month and I already know that I'm going to get through school debt-free and I'm just looking to invest and save. I'm really interested in saving for a tiny house once I graduate, and I want to pay for that in cash. And I'm just trying to figure out when the right time to move out is because I get along with my parents fine. They're great, and I enjoy being there, but I want to learn independence before possibly getting married, and I'm debating whether I want to move out by my 21st birthday or if I want to stay home and invest my money and save up for a tiny house and be able to pay for that cash once I graduate in three to four years.

Wow, you're on fire. Thank you. How old are you? I'm 19. Okay, all right. Well, I suggest after college that someone moves out of their parents' home as fast as possible. But while you're in school to ensure that you graduate debt-free and pile up some cash, and especially since you're telling me there's no toxic problem with your parents or anything, I would stay there, and I wouldn't begrudge one of my children having lived with us while they went to college, were they going to college in the same town and so forth, which ours didn't.

But I wouldn't begrudge that. Now, after school, they're going to be on a pretty short leash. I'm kicking them out. Yeah, right. Because, you know, but there's no trouble kicking you out. You're ready to fly. Yeah. But I think it's not a bad thing at all.

It's a good environment for you to be in, and it's a good financial move for you to be in, and it's going to increase your ability to hit your goal of buying a home and other things. You know, if by the time you get to your senior year, there's just a huge pile of cash and you want to move out and rent an apartment, have a roommate for the last year of school or something, I might look at that. But I'm not concerned that you do that. I don't think you've stunted your emotional growth. You're not the 32-year-old living in their mother's basement, okay?

That's never that's never going to be you it's just not who you are uh it's not the way you're wired and it's not the way you were raised apparently so um congratulations very well done thank you i like everything do you think invest go ahead no you go ahead i was just going to say i mean do you think investing at 19 years old is too early do you think having the money that I have, like I should start investing now, or should I wait? I would wait because I think the best investment in the world right now for you is Aaron. And, you know, you paying cash for school without any debt and having extra cash to make sure that that happens.

If you come out of college 100% debt-free and you've gotten a degree in a field that actually has some marketability, meaning you have a career field that's reasonable, you know, you have made one of the best investments you can make. And I'm not – that's not a philosophical statement, although it is that, but it's a practical statement. What I mean is this. The amount of money that you're spending on school or that you're putting in a savings account to ensure that you go through school debt-free, had you invested that in a mutual fund, it would not have given you as much money in return as that education will give you in return, assuming you're studying something that is actually applicable. Yeah.

By the way, what you're studying something that is actually applicable. Yeah. Okay, that makes sense. By the way, what are you studying? I'm double majoring with special education and American Sign Language interpreting. Okay. And so you intend to do what? I'm not quite sure yet. I'm thinking I want to be a teacher for kids with special needs and maybe interpret on the side.

I haven't quite figured that out yet. Okay. So you've got a heart for people with special needs, obviously. Both of those things point to that. Very cool. Yes. Very cool. Very neat.

Good. The only thing I might challenge you on, and you've got some time to think about this, you don't have to decide today, is I'm concerned about the little house movement or the small house movement or whatever you call it um because i think you're going to be fine to be able to buy a more traditional home the the little house movement also has a very little market and anything that has a little market does not appreciate and value like things that have a big market not a lot of people want to buy them and if not a lot of people want to buy them they're not going to go up as much market. Not a lot of people want to buy them, and if not a lot of people want to buy them, they're not going to go up as much as things that a lot of people want to buy. And so I personally have not made any investments in that,

and yet I have a ton of real estate investments. But you've got two or three, four years to think about that idea and kind of see how I might be proven wrong during that period of time. I won't be, but I might be. wrong during that period of time i won't be but i might be so you check that out hey way to go kiddo i think you're killing it you're a rock star jason is with us in omaha nebraska hi jason how are you good how are you dave better than i deserve what's up yeah i'm pulling uh my wife and i, we've been trying to figure out what to do with, we have rental properties, and overall it's going well, other than the fact that we do have mortgages on all of them.

And we actually kind of live in one of them, one of them's a duplex. And so we're just trying to figure out what to do. Other than the mortgages, we are debt-free. Okay, how many properties? Six. Six, okay. And how much do you owe on them total we we owe uh 635 000 total and what are they worth total about a million 45 excellent so you got about 60 65 equity position or debt to income or debt-to-value ratio. And what's your household income?

We make about $125,000 together. And how old are you? I am 34. I'll be 35 this year. And where do you want to be with these rental properties by the time you're 40, debt-wise? Debt-wise, well, we're trying to figure if we should sell a few of them to pay a few of them off. It's kind of hard because they're all cash flowing. So it's like we don't necessarily want to make the wrong decision.

We just want to be wise in what we're doing. I think realistically in seven years, with being aggressive, we can have most of them paid off. That's $600,000 making $100 a year doing $600 a year. I mean, I'm sorry, you're paying off $100 a year and making $100 a quarter a year. I'm not sure how you're doing that. Well, we live in a way pretty frugal. No, you missed my point. You're making $100 a quarter.

You can't pay $100,000 a year in debt off. Okay. It doesn't matter. You can't do it. I mean, you don't pay $100,000 a year in debt off. Okay. It doesn't matter. You can't do it. I mean, you don't even have $100,000 left after taxes. No, that's after taxes. That's essentially what we're paying. Oh, okay. Well, still, you're not going to live on $25,000.

I wouldn't. So I'm with you. I'd want to keep the rentals. I probably would pick, you know, out of the six, I'd probably pick the three or four I like the best for future appreciation and cash flows and the neighborhood and so forth. And I'd probably sell either two or three to advance my debt freedom on the balance of them. If I were in your shoes, that's probably what I would do. And that'll put you out of debt probably in about four to five years if you do that, depending on how those equities are spread out.

This is big news, guys. You need to stop and listen. The Fed decided not to raise interest rates. That means you've got a small window of time before rates rise again. Here's the deal. Most people are paying too much interest on their largest expense, their home. So you're freaking crazy if you don't take 10 minutes to call Churchill Mortgage right now and see if they can save you money before rates rise again. A mortgage through Churchill could save you thousands, or better yet, reduce

the time until you're debt-free. Can you imagine how it would feel to no longer have that payment looming over your head every month? Just go to ChurchillMortgage.com or call 888-LOAN-200. Their team of experts will give you more clarity about your options and more peace knowing you're saving significant money in the long run. Call 888-LOAN-200. That's 888-562-6200 or churchillmortgage.com. in the lobby of ramsey solutions aj and bernadette are with us hey guys how are you hey dave welcome welcome where do you two live thank you charlotte north carolina awesome well Ramsey Solutions, AJ and Bernadette are with us. Hey, guys. How are you? Hi, Dave. Hey, Dave. Welcome, welcome. Where do you two live?

Thank you. Charlotte, North Carolina. Awesome. Well, welcome to Nashville. Thank you. Good to have you visit. Thanks for hanging out with us. And all the way over here to do a debt-free scream.

Heck yeah. That's right. Love it. How much you paid off? $127,000. Very cool. And how long did that take? It took us 24 months.

Good. And your range of income during that time? It actually went down. It started at $140 and went down to about $110. Okay. How come? I actually decided to start a small business in the midst of Baby Step 2. And we were able to do that because we were really focused on the debt part. Okay, cool. What kind of business did you start? I started a dress rental business in Charlotte, North Carolina. Yeah. Yeah, we rent out dresses for special occasions to help women save money. Absolutely.

There's a big one. Is it called Runway or somebody that does that? That's the big online version, so everyone calls us the local version, except you can try everything on ahead of time, and everything's under $100. Rachel Cruz is a big fan of that stuff. Oh, well, if she's in Charlotte, she can come visit. Very cool. Good for you.

That's a great idea. So what kind of debt was the $127,000? About $70,000 of it was student loans for my MBA and then the rest of it was a rental property that we own. Oh, so you paid that off. Very good. So the rental's gone and the student loans are gone. Yes, sir.

The rental debt, did you sell it or did you pay it off? We paid it off. Okay, and kept it. What's it worth? It's probably in the 130s. Nice. Very nice. Oh, before I drive by, what's the name of your shop?

Dressed Charlotte. Dressed Charlotte. Yep. Okay. Give you a nice plug for 15 million people right now. We're going to stop by next week when you get home. Sounds good. Very good.

Thank you. So how long have you two been married? Coming up to seven years now. That's wonderful. Well done. He has the math in his head right now. He's like da-da-da-da-da. The year.

Oh, no. You'll be doing that the rest of your life, brother. So what happened 24 months ago? Well, it actually started four years ago. So I was in corporate HR for a long time. That was my career. And I realized that I didn't really enjoy it that much, but I didn't know what else I wanted to do. And I thought like any other person in their 20s who doesn't know what they want to do is like,

you know, it's a good idea. Let's go back to school and take out student loans and get a degree you don't necessarily need. And so I ended up going to school, getting my MBA. And then while I was in the MBA program, I had this idea for this business. And also during that time, we had just gotten married. We just moved to Charlotte. We had bought our first house together. And I also thought that we wanted to be like DIY fixer-uppers. And so we were like, oh, we want to build this rental empire and do all of this stuff. Hey, Jay, she has an idea every 20 minutes, doesn't she?

I know, right? How did you can tell already, right? He's just standing here smiling, and I'm just like, oh, here's my next idea. That's good. And so I went to school, got the MBA. We were both working full time during that time. And then while I was in the MBA, we got a second house, which is a house that we live in now. And then when I was on the verge of graduating, it was my last semester in school.

And I decided, I'm like, I wonder how much I have in student loans. It can't be that much. I've been paying some along the way, like should be fine. And then I went to go look and it was like $70,000. I had no idea that I had actually taken out that much. So your heart rate changed. So I basically like, yeah, almost passed out. And then I had this epiphany that in just two years, I had gone from being completely debt-free to having student loans and having two mortgages on top of it. And I felt like I literally couldn't breathe. I felt like, oh my God, what have I done? And so I went to AJ pretty much in

hysteria. And if you can tell, he's super calm all the time. And I said, I basically screwed up, and I think we need to figure this out, but I don't know how. And the great thing was that he was super supportive the whole time. And then i started a friend of us a friend of ours uh taught us about yugu um and like the millennial i am i stalked you on instagram and facebook and everything um and we started following except aj was not a fan of you to be honest she introduced me you, and you quickly became the uninvited house guest. Yeah, yeah. Well, she doesn't do anything halfway. So she joined a cult and didn't take you with her. Exactly.

I heard your voice when I came home from work, while I was cooking, when I went to bed. Oh, no. So I heard you, but I ended up listening to you and your message and your plan. So that's really what got me all in. Cool. What do you do for a living? I'm So that's really what got me all in. Cool. What do you do for a living? I'm a business analyst at a utility company. Okay.

Very cool. Very cool. So you're a process guy. Absolutely. And Bernadette goes after everything wide open. Yeah. And you guys are a complete perfect couple. Oh, thank you.

Because you're complementary, I mean, to each other. One of you is wide open. The other one is like, whoa, careful, careful. Yeah, we have good balance for sure. And I think what was challenging for us in the beginning, too, was that process point. We had completely different philosophies on how we should tackle it. We got into some major arguments early on about, should we cut up our credit card? Like, I was all in.

I was like, we're going to go into budget. We're going to do credit, cut up all our credit cards. We're going to get rid of my car. And he was like, no, I don't want to do it. And slowly he, he figured out that it made sense. Okay, cool. This is worth it. Gotcha. So AJ, um, I don't blame you by the way, I would be that, that probably be that guy too, if Sharon came home doing this stuff. So, uh, what did bring you around? I think I just saw how much this ate her up on the inside. And I had to adjust my personal financial philosophy. I think I didn't have any bad debt before. And I was like, if I did it beforehand, we should be able to work it with her MBA degree.

And it still ate her up. I mean, I think just the timeline, it just didn't fit for paying this off in 10, 20 years. So I think once I saw how much it affected her, I was like, you know what? I got to listen to your plan and accelerate the process, and that's what I was here to do. Yeah. Okay. And then it's game on. So what do you tell people the key to getting out of debt is, AJ? I think the key to getting out of debt is, AJ? I think the key to getting out of debt, if you have a partner, definitely communicate with them. If not, you have, you know, your friends and family, you know, encourage each other and hold each other accountable, I think. And also to have the courage to really, you know, you're going to have naysayers and skeptics out there and be able to face them and say, hey, you know, I'm focused on this.

We're focused on that. You know, whatever you say, it doesn't bother us. And, you know, we'll be better out in the long run. Now, did you have more haters or more supporters? Oh, actually, well, what was interesting, so you talk about millennials a lot, and I guess we're considered millennials. And we started posting in social media about what we were doing in paying off our debt. And a lot of our friends haven't heard of you. And in the beginning, we used to get into arguments with friends.

They were like, why do you cut up your credit cards? You could get points. Why do you not come with us on these fun trips? You're missing out. And once we started showing how much progress we were making, when it went from 70 to 50 to 40, then all of a sudden people tried to reach out to us instead and ask us how we were doing it. So in the beginning, people weren't on board, but once they saw results, then it actually changed it. And now we have a lot of

people who support us. That's cool. Very good. That's fun. Good way to process it. Well, you got in a community one way or the other, huh? Yeah. Yeah. And it started on social media and then it became in real life so i think that's really important to tell your story putting out there you know holds you accountable as well too so okay so bernadette what do you tell people the key to getting out of that is i think for me it's having a goal in mind for the future i think a lot of people that i know are kind of going through life and not really sure what it is they want to do next. And for me, it was really helpful that I had this business that I wanted to start, and that was my goal.

And I wanted to do this business completely debt-free as well. So the only way I felt like we could do that is if we followed your plan. And if we, you know, even all the sacrifices that we had to make in the last two years, I mean, we got rid of everything. We had yard sales and rice and beans and everything that you say to do, and a lot of people thought we went crazy. But what they didn't know is that I had this vision in the back of my mind of what I wanted to be. Well, you're proof of what I always say. Some millennials don't get it, and the others really get it, and there's not much in between. The ones that get it are on fire, and we love them.

We've got a building full of them working on our team here, and we love them. We talk about it all the time around here. Congratulations, you two. Very proud of you. We've got a copy of Chris Hogan's retire-inspired book for you. And $127,000 paid off in 24 months, making $140,000 to $100,000. Count it down. Let's hear a debt-free scream.

Three, two, one. We're debt-free! Great job, you two. Great job. Well done. Man, what great, what rock stars. What a great couple. That's a lot of fun. This is the Dave

Ramsey Show. We'll be right back. Our question of the day comes from Blinds.com. They have a 100% satisfaction guarantee. It means even if you mess up, if you mismeasure or you pick the wrong color, they're going to remake your window blind for free. With Blinds.com, you also get free samples, free shipping, and with the new promos they run every month, you're going to save money. Check out the promo code Ramsey at Blinds.com.

Charity is in Illinois. I am only in my 30s, but my parents are getting older. That generally happens. My siblings and I are looking into purchasing long-term care insurance for one or both of them. I know you say that everyone should purchase long-term care insurance at 60, but if a person is in good health, would waiting until closer to 70 be a good idea? Additionally, does it actually cover everything needed for long-term care. About 70% – if you get a good policy, it covers in-home care as well as nursing home care.

And about 70% of the policies right now, the claims that are going out are for in-home care. And so that covers, quote, unquote, everything. Now, it doesn't cover your medical. It covers the nursing home or the in-home care that's the equivalent. And so, you know, that's what it does cover. Now, typically, most, you know, very few people spend very much time in a nursing home, and most of these policies cover only about three years, which is plenty, to be truthful, because of the way the thing is set up.

It just doesn't, you know, the average time spent in a nursing home is 2.4 years, and they cover three years. And the percentage that stay longer than three years is only a fourth of the people. And so that's what you're looking at. And so you want three to four years, maybe five years in coverage. You want an in-home care type of a benefit. And most of these are a $3,000 to a $5,000 per month benefit. And that's what they cover. So does it cover everything?

No. If you sign up for a $6,000 a month nursing home and you have a $3,000 benefit, it doesn't. So, you know, you pick a nursing home or in-home care that is within the amount of coverage, and that's what it does. So if you want to learn more, what you need to do is sit down with a good independent agent that will shop among several different companies and get you the best deal. And, no, I would not wait until 70. If there is a need, once they're 60, if the people can afford it,

I don't want you to starve to death. I don't want you going into debt. I don't want you not paying off debt or something like that because you're buying a long-term care policy for your parents. But, you know, learn about it look about it don't panic about it but i would not wait until 70 it's not a better deal if everybody's healthy because it's not generally the way the thing works so the statistics are the 75 of the ladies will outlive their husbands. And so the normal scenario is Papa goes into the nursing home. They've saved $300,000, and he burns it up, dies. Mama's left with no money.

And if you don't have long-term care insurance, that's what you're left with. That's the normal scenario. So that's why you get nursing home insurance. But the good news is, again, the average stay is 2.4 years. That's the average stay. And, you know, you can learn more about it at DaveRamsey.com. Just click on ELP for long-term care insurance. And you meet with somebody in your area, sit down, talk to somebody.

They'll shop, help you find it, and learn, learn, it and learn learn learn learn learn learn but that's the basics and and some of you need to there's a weird thing about nursing homes that people have um it's strange in their minds there's two things that are weird thing one that's weird is they say well you know we've got to move all daddy and mama's money out of their name because the nursing home is going to get it all. Well, that's weird for several reasons. One is it kind of says that you don't think that nursing homes deserve to be paid. You go to a restaurant, eat their food, you expect to pay the bill. You go to a car lot and leave with one of their cars, you expect to pay for it.

Why is it you don't think you pay for a nursing home? A nursing home took all our money. No, you bought their services. They didn't take all your money. It's funny how people, the words they use to describe nursing home care. And by the way, you can't move money out of mom and daddy's name in order for them to get government-provided nursing home care. Government-provided nursing home care is welfare.

It's for poor people. And if you intentionally make someone poor who's not poor by moving the money out of their name, that's called fraud. It's called welfare fraud. And the government has the ability on Medicaid-provided nursing home, which is welfare, to look back five years and see if you move the house out of their name, move the money out of their name in order to qualify. That's like saying, I'm not going to work so I can get food stamps. Or I'm going to go get a job, and I'm not going to report my income so that I can get food stamps when i when i have or i'm going to go get a job and i'm not going to report my

income so that i can get food stamps that would be called fraud fraud criminal activity you get the idea so i mean but somehow when it's with a nursing home people who would never take out welfare in a million years try to arrange a way to get welfare that they're not due, and they would never think about it that way. They just think that somehow like the nursing homes are like walking around with a vacuum cleaner sucking up people's money, like mysteriously stealing from you. No, listen, they don't take your money unless you take their service. A restaurant doesn't take your money unless you eat there. And a car dealer doesn't take your money unless you take a car from there.

It's the same way. It's a purchase of a good or a service is all it is. That's the process that you're facing. So that's the thing to think about as you're looking at nursing homes. So long-term care before age 60, I do not recommend it. I'm 57. I do not have it. I do not recommend it. I'm 57. I do not have it. I do not recommend it. The percentage of people who spend time in a nursing home is less than one half of 1% prior to age 60. And I would not ensure that. But after age 60, the numbers go up every second. It's crazy how

the statistics change on that. So, hey, business owners and HR professionals, you can listen up. We know you're always looking out for your team and that you want to do things to help your team. Well, did you know that the most common way your employees learn about retirement, which is the key, 401k, which is the key to becoming a millionaire, is from their employer. And that's why we created our program called SmartDollar. It is the best financial wellness program on the planet for your team. Major companies all over America are running SmartDollar right now

because they see their 401k contributions go up. Borrowing and cashing out on the 401k go down. It heals the 401k, and the team is really blessed by it it's based on the money principles that we teach specifically designed for the workplace the program's accessible anywhere on any device at any time and it includes every dollar plus for your employees you can't beat that if you can set your team up to become an everyday millionaire and you hold one of the key ingredients to do that, and that's the proper use of the 401k and getting out of debt and being on a plan. When people are becoming millionaires because they work for you, how rewarding is that?

Smartdollar.com slash blueprint. Speaking of which, Ron is on Twitter. Should I contribute to my 401k with company match or put that same amount towards my mortgage? Ron, what we teach people are what's called the baby steps. And baby step one is $1,000 saved. Two is debt-free, everything but the house. Three is three to six months of expenses set aside for emergencies. If you're there, that's when your question would come up. Baby step four is put 15% of your income into your 401k.

Five is save for your kid's college. And six is any other money you can get your hands on, throw at the mortgage. So to answer your question, I would contribute 15% of my 401k, which will to my 401k, of your household income. And that gets you the company match in almost every case. And then any other mortgage, any other money we can squeeze out of the mortgage, any other money we can squeeze out of the budget goes to the mortgage. This is The Dave Ramsey Show. We'll see you next time. our scripture of the day romans 8 28 and we know that for those that love god all things work together for good for those that are called according to His purposes.

Michael J. Fox said, I see possibilities in everything. For everything that's taken away, something of greater value has been given. Brett is in Wichita, Kansas. Hey, Brett, welcome to the Dave Ramsey Show. Hi, Dave. Pleasure speaking with you. You too. What's up? Well, I am a recent college graduate who pressed pause on baby step number two back in January to save up some cash for an engagement

ring. But now it's graduating. I'm going to be relocating to St. Louis, and I am needing to front the relocation expenses and then later will be reimbursed. And so I was able to save about $4,500, obviously have the $1,000 emergency fund that I'm not wanting to go into, and just wanted to ask, how do I go about prioritizing these kind of two situations? Okay, so the $5,500 you have, including your $1,000, includes the ring budget. Correct.

That's what it was meant for originally, but then now, after getting hired on, knowing that I'm going to have to front these expenses is what I feel like I'm going to have to dip into that for that. Okay, and so you're moving from Wichita to St. Louis, and do you have a lot of things to move? Yes, I got all the furniture and everything. I mean, it's just going to take a U-Haul truck and that's it. Oh, okay. So what is that? Have you looked at the budget on that?

I expect with fuel and everything, no more than $1,500. I wouldn't think, yeah. Okay. And have you got the place lined up where you're going to be living yes but i don't know exactly when i'm going to start because we're waiting on the background check process and so it may be mid-july okay all right are you working now i am not why my internship ended at the end of the school year, which was back mid-May, and I accepted the job before then and did not expect for it to take this long for the process.

Mm-hmm. Okay. All right. Mid-July, so I've got 30 days it could be, right? Correct. Okay. All right. And have you scoped out a place to live?

Yes, I do have one lined up. Okay. And what is that going to take, money-wise, to get into? I've already paid for the deposit and everything. And you don't have the background check cleared for the company i know but what if you don't get hired i there i i don't foresee anything in my background uh that's gonna not allow me to be hired yeah but what if they decide not to hire you anyway? They haven't given you a complete, you're not done. I mean, let's not put any more deposits up until you are moving there.

And lots of people have had things like this get this close and then not occur. And if it takes five months, you're not going to take this job. If it takes five months to get the background check done, what's your degree in? Industrial engineering. Okay. So you could land something else. All right. If this goes any more than 30 days, you start looking again.

Okay. And don't put any more deposits down. All right. So you can kind of move in on a shoestring, and they're not offering you any help at all to move you. Not up front. It will be reimbursed afterwards. Yeah, but they're hiring a broke college student. I mean, how do they expect you to move?

I don't know. Yeah, I don't either. So I might ask about that. Is there any possibility that I could get advanced some of this to help me move? I'm a broke college student. This is my first job. You knew that when you hired me. And, you know, just ask for it and see what you get.

Even if they go, okay, we'll front you a couple grand. That would change your whole equation. The ring is on hold until you get this deal done. I mean, you don't have room for everything. You either don't take the job and buy the ring or you don't buy the ring yet and take the job. take the job and buy the ring, or you don't buy the ring yet and take the job, and then when you get the reimbursement, you can go buy the ring. Agreed? Yes.

Sorry, but, I mean, you've got to choose something here. So it's not we're not going to marry the girl. It's we're going to delay it just a little bit on the ring that goes on the finger. Or you go get her a $50 and you replace it later if you want to if you want to go ahead and get engaged i don't care however you want to play this but that that's that's how it's going down um hmm yeah and in the during the interim like by the end of today i'd be delivering pizzas every night and see if you can't come up with another 1500 or two thousand dollars or all day and every night.

I mean, let's just work all the time, get some kind of quick, easy job, like delivering pizzas or something else, and start immediately and work your tail end off. Between now and the time you go to St. Louis, you could put another $2,000, $3,000 in the bank doing that. And I would. You need it. You know, $5 five grand would change your life right now agreed agree yeah so that that's what i'm looking at i want to make sure that you know you can do anything you can to create money and if they call you tomorrow and say

approved come on then you know you just tell the pizza folks we're going on but um i mean the truth is i think i'm going to be moving but i don't have everything set up yet. And if I do, it's going to be a little while. In the meantime, you've got the best pizza driver you've ever had in your life, and I'm going to kill it. Or whatever you want to go do, I don't care. Whatever your best idea of part-time job is, but I want you working all the time right now to make some money, put some money in the bank. Sitting and waiting on these people is scaring me to death here. I put you in a position of weakness that I don't like, and you're cash poor.

All right, Sherry's with us in Detroit, Michigan. Hi, Sherry, how are you? Hi, I'm well, Dave. How gratifying it must be for you and your team to be such a blessing to the body of Christ and everybody else for that matter. Bless your heart. To really be walking in your purpose. Listen, I'm 59 years old.

I have no savings. I also have no mortgage. My 30-year-old daughter, yes, told me about you, and you would be so proud of her. I'm doing baby step two. And two quick questions. I know we're probably up against the clock, but I wanted to – I need some encouragement. Is it too late for me to – you know, what can I do in terms of my retirement savings? And then also, I'm helping my daughter to send my granddaughter to Christian education,

to private school. Should we pull her out and send her to, you know, a regular school? What do you make a year? I make 50. My daughter makes $40,000. Your daughter is a grown person. You make $50,000, and you're not ready for retirement. That's what we're dealing with. Okay. And you have an expense where you're assisting her a little bit.

Is she living with you or something? Yes, she is. Okay. All right. And so, all right, you make $50,000 a year. How much debt do you have? Oh, Lord, $114,000 student loan debt. I went back to school late, and then I'm on this income-based thing, and, you know, that just keeps going up.

Yeah, not anymore. You've got to go get it cleared up. And so is there anything you can do to create extra income? I am doing it. I'm a music teacher, so I also teach piano lessons. I'm just trying to get as many students as I possibly doing. I'm a music teacher, so I also teach piano lessons. I'm just trying to get as many students as I possibly can. Yeah, you'll probably make another $50 doing that if you really load that book up. Yes.

And, okay, I don't want to be unkind, and like you said, I'm a little short on time, which makes me seem unkind, but here's the thing. I know. You have $100,000 in debt. You're 59 years old. You've got a paid-for house. You make $50. You have the potential to get that debt. You're 59 years old. You've got a paid-for house. You make $50,000. You have the potential to get that up by doing tutoring and other things.

We've got to clear this debt. It's your best hope to getting you into retirement solid, because if you could be 100% debt-free, you could save some serious money. And the luxury of you paying for things for your grandchild right now, you're too broke to do that, hon. I'm so sorry. I know there's a whole lot of discussion you can have around you know the education issue and how to do it how to how to get out all that um but you guys are going to have to have that discussion under your roof but you've got to clear this debt up or you're going to have serious

problems when you're 70 i mean you do not want to wait around to do this so i would do it right now and yes you can do this it's very doable but you're going to I mean, you do not want to wait around to do this. So I would do it right now. And yes, you can do this. It's very doable. But you're going to be working a lot and sacrificing to clear that debt and then using that same mentality to build wealth. And you're going to be able to do it. I think you can do it. And I know who can help you, and that's a guy named Chris Hogan.

The book is Retire Inspired. I'll send you a copy as our gift. And you keep listening. And if you need some more help, you call me anytime. That's what we're here for i think you can do it that puts us out of the dave ramsey show in the books we will be back with you before you know it in the meantime remember there's ultimately only one way to financial peace and that's to walk daily with the prince of peace christ jesus Christ Jesus. live on the show, make sure you visit DaveRamsey.com slash show and register. We would love for you to come to Nashville and tell Dave your story.