The Ramsey Show - App - Should I Get a Post-Nuptial Agreement? (Hour 3)

Episode Date: April 24, 2020

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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 BMW as the status symbol of choice. I'm Dave Ramsey, your host. Thank you for joining us. Open phones at 888-825-5225. That's 888-825-5225. Rebecca is with us in Boise, Idaho. Hi, Rebecca. How are you? Good, Dave. How are you? Better than I deserve. What's up?

Well, I'm just wondering about what your advice would be on how to balance helping family financially and taking care of yourself financially. So I'll just briefly describe our situation. My husband and I have been married for almost a year. We have no debt, and I'm about to start school next month, and we have a goal to purchase a home next spring or summer. So we're doing great, no complaints there. However, my mother-in-law is recovering from cancer, and since she had no health insurance,

they've got quite a few thousand dollars of debt now due to the medical bills. She's probably not going to be able to go back to work. And my father-in-law is 68. He's partially blind, drawing from the Social Security already, and still works a little bit part-time, but it's barely enough to support them. They're renting. They have no retirement savings. And they have all these medical bills now. Their income is about to go down.

So I'm concerned about their situation, their future. We try to send them money periodically to help them out, but to reach our goals like school and a house, like I said, we can't keep helping them to the same extent. So what's your household income? Collectively right now, it's about 52. Oh, okay. And, well, here's the rule. You can only help others to the extent you're strong enough to do it.

And so if they need a million dollars to pay off their medical bills, they don't. But if they did, you can't help them. You don't have the money. Right? Mm-hmm. And so at what point do you not have the money? As desperate and dire as their situation is, at what point do you just not have the money? You don't have a million dollars.

Even if you wanted to, you couldn't pay a million dollars to help them. So how much in medical bills do they have, do you know? About $15,000. Okay. And you guys make $50,000. and how much money have you been sending them um we usually send them just a couple hundred a month however when i'm going to start school i'll be working part-time so our income will go down by about 10 000 a year so that'll change here soon yeah okay and so you're going to very, very tight to be able to even do that.

Right. So basically the question comes down to prioritizing. And, you know, I've been told that as well, that the best way to help others is to set yourself up well first. But from a Christian perspective, it almost seems selfish. And I feel like I can't ignore my family's immediate needs. Why is it? Stop, stop, stop, stop. It almost seems selfish, and I feel like I can't ignore my family's immediate needs. Why is it selfish from a Christian perspective to take care of your own family? Because we're set up well enough right now that we don't have to buy a house in a year.

That's our goal. We could put that on hold and still help them in the near future instead of ignoring their immediate need and helping them later. There's not a biblical mandate for you to do that, though. So I'm not going to take a Christian guilt trip on this. The Bible says clearly take care of your own household first or you're worse than an unbeliever. That's pretty strong.

It is. Now, do good people and including christians want to help mom and dad when they're struggling absolutely but uh we're not going to spiritualize this and make you like a bad christian if you don't send them two hundred dollars okay that's absurd now once we've said that but good people want to help, and you want to help, and certainly your husband wants to help. And I want to see you be able to help them. So $200 a month doesn't keep you from buying a house in a year. You going to school might keep you from buying a house in a year. Yeah.

But $200 a month is $2,400. If you're $2,400 off of buying a house, you weren't ready to buy a house in a year. Yeah. But $200 a month is $2,400. If you're $2,400 off of buying a house, you weren't ready to buy a house anyway. So what I want to do is I want to get up under this because what the problem is, is it feels like there's no end to it for you and helping them. And it looks a little mathematically like there's no end to it. Number one, I wouldn't pay a dime of medical bills and I wouldn't have them pay a dime of medical bills until they have met their basic needs. And that's true of anyone I'm coaching. Okay. And their basic needs are food, shelter, clothing, transportation, and utilities. And so he has the social security check coming in. How old is your mother-in-law? She is about okay so she's not going to draw right now

unless she's declared disabled and uh and they have absolutely no money anywhere is what you're telling me aside from the social security yeah but i mean they're broke they don't own anything and they don't have any money right Right, and that's what concerns me. I guess their income is about to go down, and so they are breaking even right now. So what you've got to do if you really want to help is it's more trouble than just sending a $200 check. You need to get with your husband and with them. Are they in the same town you're in by chance?

No, they're about four hours away, so not too bad though then maybe you jump on the phone or maybe you jump over there one weekend and you lay out a budget of how they're going to make it for the next 20 years or the next 10 years or five years until she gets social security okay and that's basically his social security income plus whatever other jobs that either one of them can do given their health situations and and then you say that's how much money there is we need to work out a plan where you guys can live on that because we can't pay your fifteen thousand dollars in medical bills they're not going to get paid right now and you can't pay them either because you have to eat first. That's a rule. And so if he has $3,000 a month coming in and in Social Security and they need $3,200 a month to exist,

that's $200 I'm probably coming up with if it delays something in your life. Yeah, I'm probably going to do that. Okay? Okay. But if they need $10,000 to exist and you're giving them 200 that's someone good money after bad you haven't really solved their problem so i want you to get up under this and make sure that what you're doing actually causes them to be sustainable mathematically and your husband is in this too and it really he needs to lead the discussion not you

because you're going to end up being the evil greedy daughter-in-law if you're not careful here okay you don't want to be that one okay i mean that's how you're going to get posted in this and so does your husband have any brothers or sisters he does he has one younger brother that is how old he's 17 and he's about to turn 18. Good gracious. So he's living with them? Right, and that's when their income will go down, because since he's on disability, or sorry, my father-in-law is on disability, they get a check since they have a dependent, but once he's 18 that will go away.

Wow, okay. So we've got to lay out a game plan that sustains them. That may mean moving, it may mean doing a lot of different things. But $200 a month is not going to fix this situation, nor is it going to delay you. But it certainly doesn't have anything to do with you being a good Christian. You're just trying to be a good person and help mom and dad. It's not a spiritual issue involved here. And don't over-spiritualize it.

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That's why we use LinkedIn Jobs when we hire here at Ramsey. When the time comes to hire for your business, you can get $50 off your first job post at linkedin.com slash Ramsey. That's linkedin.com slash Ramsey. Terms and conditions apply. Sajid is with us in Chicago. Welcome to the Dave Ramsey Show, sir. How can I help?

Thanks for taking my call. Sure. I had a question about college savings. I have two kids, a two-year-old and a half-year-old, and I was thinking of putting money away for them. But I work at a Christian school, and I don't make a lot of money. And I do weddings on the side and other things and stuff, and I was just wondering, like, how much should I set aside for college specifically for them?

Well, there's not a magic number. What you want to aim at is say okay what's it going to cost to send a child to school 20 years from now which is what we're talking about here and you'd have to you know figure out which type of school you're thinking of and what the cost might be at that time you can probably get some estimates on that and then you can back into what you actually need to save if you want to pay 100 of that a lot of lot of people aren't able to do that, especially in the early years of having a child, because their incomes haven't grown yet. And so, you know, you just start something when you're on baby steps four, five, and six.

Four is 15% of your income going into retirement. Five is putting something away for kids' college. Six is paying extra on the house if you can do that above that. So if that's where you are and you're debt free and have your emergency fund in place, then what I would do is just get something started, you know, 50, 100 bucks a month, whatever it is. It doesn't have to be a lot. Get with a SmartVestor Pro and, you know, you can set up a 529 or an educational savings account. They'll grow tax free. You can set that up to automatically be drafted from your checking account. But the whole thing is kind of get in the rhythm of it instead of doing nothing and

just fretting. Now, are you debt-free except your home? Yes, actually. I paid off my condo and everything. Oh, everything's paid for. Thanks for all your help. It's wonderful. You're 100% debt-free. You taught me. Very good. And what's your household income? $36,000 as a teacher. Okay. All right. Good. And I film weddings on the side, and it's maybe about $15,000 extra if I'm getting customers or something.

Okay. So you've got $50,000 a year coming in, roughly. Yeah. And you have no payments in the world. No, no. That's good. I mean, that's really good. And, you know, and you have no payments in the world. No, no. That's good. You know, I mean, that's really good. So make sure your emergency fund is in place and that you're putting 15% of your income aside, which will be about $7,500 a year into your retirement.

And then just get something started for the kids. And then as your income increases over the years, and it should, you shouldn't be stagnant. You should always be doing something to grow your income, grow your career, then start putting more and more and more and more in. Very few people put the exact right amount in in the early years. They at least get started, though, and get the rhythm of saving for college in your life, and that's what you want. Adam is in Bend, Oregon.

Hey, Adam, welcome to the Dave Ramsey Show. Hey, how are you doing, Dave? Better Bend, Oregon. Hey, Adam, welcome to the Dave Ramsey Show. Hey, how you doing, Dave? Better than I deserve. What's up? Well, I'm just trying to figure out what to do with a rental property. I've just kind of been turned on to you a few months ago and realized I've done everything kind of against your words of wisdom. So we've got a house we bought in 12, probably owe about 75. It's worth 250 to 275. It's currently a rental as we've moved now two more times into a new primary residence. And looking at it, it was initially going to be kind of part of our

retirement portfolio since we're both self-employed. But now I'm a little stressed out that maybe I need to clean some things up and maybe use that money to invest. Do you have any other debts other than your home and the rental? We have, yeah, two cars. What do you owe on them? We owe just about $30,000. Total? Total.

Okay. All right. And what's your household income? Well, that's finally actually started to produce something, so we're probably just over $100,000 now. My wife's recently gone back to work, so maybe $110,000. Okay. Excellent. Good, good.

And what do you owe on your primary? About $300,000. Okay. It's worth about $4,000. four. It's a recent purchase. I guess my biggest concern is that we don't really have any other retirement investments set up because, well, I've been, I guess, lazy or just self-employed my entire life. Self-employed people, we have a tendency, unless we get big enough that we set up retirement plans for our employees, we have a tendency to not do that. And so you're not unusual in that regard.

But the good news is something woke you up. You got a little cold water in the face. So what I would do in this, it sounds like you're fairly new to this idea of, okay, I'm going to pay attention to this subject called personal finance, and I'm going to clean up the garage here. The garage needs to be cleaned out. All right? So nothing in this tells me to panic. And so if you want to hold this rental for a year and start your plan and then make a decision later, there's nothing here that goes,

if you don't sell the rental, you're stupid. No, I wouldn't say that. So what I would do is I would say you need to pay off these cars in a year or you need to sell them. Right. Okay. So let's get on a budget, and a real tight household budget. Get the cars paid off.

When the cars are paid off, build your emergency fund of three to six months of expenses, and then start saving 15% of your income into retirement. Now, do you have employees in your businesses? Yeah. How many? I just have one. One, and how long have they been with you? About a year and a half, almost two years now.

Okay, all right. Well, there's two types of retirement in addition to a regular Roth IRA. Okay, you can do a Roth IRA each, which would be, how old are you guys? We're mid thirties. Okay. So you can do 5,500 each. So $10,000 or $11,000 between the two of you if you're married, right? And so that would be 11% of your income going into retirement. That's not bad. That's a really good start. If you want to just start with that, then you can do a SEP, a simplified employee pension plan. If you want to, start with that, then you can do a SEP, a simplified employee pension plan. If you want to, in addition to that, or you can do what's called a simple IRA, which is a 401k for small business.

And it's real easy to set up one page of paperwork. Two pages of paperwork is not much. Fifteen dollars a year the only downside of the 401 of the simple the ira for business small business is you are required to put three percent to match the first three percent if your one employee chooses to put money in so that would be your cost to do that if you set that up but the first thing i'd do is get these cars paid off get your emergency fund in place and get you a couple of roth iras going as soon as that happens. And at least we're doing something towards retirement then.

You can look at a SEP or a simple IRA, which, again, is a 401K for small business. And then while you're doing all of that, you may want to look over there and glance over your shoulder and go, if I sold this rental, I could just about pay off my house. Do I want to do that? Maybe. And let me add one more thing. I believe if we sell it by September, we could avoid capital gains since we lived in it two of the last five years. Ooh. So that was my other one.

However, it gets more complicated because we have been running faster than we can think in the meantime we recently sold another house since we moved out of that original home that we still have as a rental moved into a new home we've sold that and avoided capital gains since we lived in it for two years and now we're in a new house i have no idea you don't have to ask you have to ask a tax guy on that one and if you want if you can still avoid the capital gains on it, I might go ahead and move it. That might change the storyline. But I'm thinking you can't. I'm thinking you've already made something else your primary residence since you moved out of there. But double-check and get with a tax professional.

If you don't have one, you can check endorsed local providers for taxes at DaveRamsey.com. We've got folks we endorse for taxes in your area. They'll help you get that figured out. But that might change the storyline on holding the rental and being more patient with it. But otherwise, I would sit on it and work the baby steps, we call them, which is what I walked you up through just now. Get the debt paid on the cars or sell them. Get the emergency fund done. Get 15% going into retirement. Make a decision on the rental at some point in that process.

But if you want to do it sooner to avoid capital gains, and you can, but get a solid tax opinion on that before you make a decision. I don't know the answer to that. I'm decent at taxes, but not good enough that you want to take my advice. Some say you shouldn't take my advice on anything, by the way. Oh, my goodness. This is The Dave Ramsey Show. We'll be right back. Folks, I love telling you about well-made, well-thought-out products. Today, I'm talking about Grip6 belts. I don't know about you, but I'm not a fan of traditional belts.

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So we live in Huntsville, Alabama. Oh, just down the road. Welcome. Good to have you. Thank you. And all the way up here to do a debt-free scream. Yes, sir. And how much have you paid off?

So we paid off $53,000. And also on top of that, we had another $7,000 that we could cash flowed my school and trip to Ukraine, which went to see my family. That's where I'm from. Perfect. And how long did this take you? It took us about 17 months. Okay. And your range of income during that time? So when we started, we made about $94,000, and this year we'll make about $110,000. Okay, excellent. What do you guys do for a living? I'm an engine systems engineer. And I work at the bank as the financial assistant. Perfect, very good. Okay, what kind of debt was the $53,000? It was mostly student loans, mine, $41,000 in student loans and $12,000 on a car. Okay, cool. How long have you guys been married? It's going to be two years and June 4th.

Okay, so immediately after you got married, you started on this then? Yes. So tell me that story. How'd that all unfold? So it actually started earlier than that, about 10 years ago. I have two older sisters who are both married with beautiful families, and they learned about you then, and they dragged me kicking and screaming to Financial Peace University at a local church and made me go through it. And it all went into one year and out the other. How old were you then? I think I was 19.

Okay. Yeah, yeah. Okay. Yeah. And, of course, I was the smartest person in the world. Of course. I was considerably smarter then. Exactly.

But I knew of you. And fast forward years later, and I meet the love of my life, and we're engaged to be married. It's about six months to go to the wedding, and I get a job offer to move a thousand miles from where our family was in Minnesota down to Huntsville. Right. And so we talked, and we agreed, and I made the move ahead of time. She stayed in Minnesota to finish planning the wedding. I started trying to budget the move, finishing off budgeting for the wedding. We were paying for it ourselves for the most part, the honeymoon, and then moving our whole family down to Alabama. So I was really digging into the spreadsheets for the first time.

And I looked at how big a chunk of our money was gonna be going towards debt, and I realized, like, this is a lot of money. This is really ridiculous. We're gonna really do this for 10 years, or however long the student loans were, and then the car loan. And so I just said, you know, what would happen if we do like

that one weird Dave Ramsey guy said long ago, and just focus on it, like how long will that take? And because I'm an engineer, and because I'm an engineer, I'm a numbers guy, I was really blown away. It was like a year and a half by the numbers is what it would take. And we talked about it. And we're like, hey, that's totally worth it. Let's go through Financial Peace University and get ourselves on track.

And the amazing thing is we started out and we made budgets together. And we went to Financial Peace University right before our wedding. And then actually again later on after we were married for a couple of months. Good. To really drive it home. Right. And we were making budgets together. And at first we budgeted things like blow money and extra money for restaurants and extra money for entertainment.

And as we started paying off the debt and the sort of snowball turned over and it picked up steam, we got really, really excited at the prospect of getting out of debt so quickly, and we just cut all that extra stuff out. And so we were living on a minimal budget, throwing everything we could at the debt. And for fun, we had a subscription to Netflix. We loved going on walks. Right. And that's what we did for a year and a half.

And we also got extra jobs during that time. Wow. Very cool. Very cool. So what do you tell people the key to getting out of debt is? You paid off $53,017 months. You're successful. What's the key?

I think for me the most important was to see the light at the end of the tunnel is to find inspiration from other people too and the main thing we did is when we were cleaning offices in the evenings which was really frustrating to go after a first job to go to the second so we were listening to your podcast a lot and it really helps seeing other people getting out of debt which made us think that, hey, we can totally do this if these people did this. So that was just to get an exploration. And then also to find a partner, accountability partner is very important. And there's a very important verse in the Bible that I actually wrote down because I knew I'm going to forget it. That's

from Ecclesiastes chapter four, nine, two are better than one because they have a good return for their labor. If either of them falls down, one can help the other up. And you definitely do fall down during this journey because there is a lot of temptation, a lot of great food around. So you just want to go out and eat. You don't want to cook and stuff like that. So we were there for each other. So that was really important for us. Very cool.

Well, and like you said, you plugged back into an FPU class, and there had to be some people in there cheering you on too, huh? Oh, there was that, and then we also started leading class as well. Oh, wow. We were coordinating an FPU class. Oh, thank you. And your sisters are off in the background going, He finally got it!

Yes, you have no idea. We got even more gazelle intents than they were before. Right. And there, another thing I wanted to mention is do not be afraid to take any extra jobs or maybe some jobs that people are not willing to take. Because for us to take a cleaning job was not, like, some people were, like, very skeptic about it,

especially people who were hiring us. Because they got to know that he's an engineer. It's like a joke. Are you cleaning offices at night? So we just took it, and we just decided there's no shame in making money, whichever way you're making it. That's right. That's right.

Yeah, and my friends were giving me a lot of crap about that. Rocket scientist by day, office cleaner by night. There you go. Well, why not? Yeah. Well, and, Avita, does the way you were brought up, you said you're from the Ukraine. Right. Did that change your perspective on that kind of a thing?

Like, we just do whatever we need to do. We can do it for a short period of time, and it'll be okay, right? To be honest with you, I did not have any debt. My family didn't. So to me, having a debt was really bad. Yeah. It was really hard to. You were willing to do anything to get out of it.

Oh, yeah. Like, I grew up, my family lives on the farm, so we were, like, doing a lot of labor. So I was not afraid of any type of job. So I was like, oh, yeah, we totally can do this. Yeah, it's fine. Yeah, very cool. I love it. That is so cool.

You guys are neat. Well done. Well done. Proud of you. Thank you. We got a copy of Chris Hogan's book for you, Everyday Millionaires, How Ordinary People Built Extraordinary Wealth and Became Millionaires. And, of course, you can, too.

And you're going to. That's what you're on track for. And you're willing to do what it takes to win. And 17 months in, boom, $53,000 plus a $7,000 cash flow on a trip and school and so forth. So very, very well done. All right. It's Elvis and Evita. Is it Evita?

Did I pronounce that correctly? No. It's actually Evita. What? It's Evita. Evita, very well done. All right. It's Elvis and Evita. Is it Evita? Did I pronounce that correctly? No. It's actually Evita. What? It's Evita. Evita. Yes. Okay.

Thank you. I'm sorry. I apologize for missing that. That's fine. I'm used to it. Well, Hillbilly's trying to say Ukrainian. That's what you get. All right.

$53,000 paid off in 17 months, making $94,000 to $110,000. Count it down. Let's hear a debt-free scream. Three, two, one. We're debt-free! Yeah! Love it, love it, love it. Fabulous.

Well done, you guys. Very well done. Lydia is with us. Is it Lydia? Okay. Is with us in San Antonio, Texas. I'm gun-shy on names now. How can I help, Lydia? Hi, Dave. It's so wonderful to be on the phone with you. I was praying to God I need help with my finances, and I just couldn't figure it out,

and I was trying to avoid even thinking about it. How can I help? I'm a single parent of three sons, and they're all in college, but I have two at home and one's off in college in New York, and he's actually graduating from the university in May. Anyway, I cash flowed all that. I had ESAs. I had the GI Bill because I retired from the military. Lydia, what's your question today, honey?

I'm sorry. My question to you is how, right now I'm working a full-time job and I'm going to school full-time, but I can't seem to get control of my finances. So do you think I should actually get another job? Okay. Why is it you have a bunch of debt? Yes, I do. Well, I have about $58,603 in debt. Okay. And what are you making at your main job? At my main job, I make about $60,000. Okay, and what is the $58,000 in debt on? Most of it is consumer debt, like credit cards and a personal loan. All right, I'll tell you what we're going to do. We're going to help you out. We're going to put you in Financial Peace University. I think you need a whole program around you on getting out of debt and getting on a budget, and we're going to show you how to do every bit of it. If you do this one simple thing that we all do, you are literally at risk of being hacked

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You can try it for free for seven days. Protect up to seven internet devices and keep all of your internet connections secure. That's CyberGhost VPN. Download it today from your app store and be secure in seconds. Our scripture of the day, 2 Thessalonians 3.13. And as for you, brothers and sisters, never tire of doing what is good. David Brinkley said, A successful man is one who can lay a firm foundation with the bricks others have thrown at him that's good david uh what a classic our question of the day comes from blinds.com you can find out for yourself why blinds.com is the number one online

retailer of custom window coverings you get free samples free shipping and with the two new promos they run every month you'll save even more use the magic word the promo code ramsey today's question is from aaron in colorado my husband and i have been married for five years two years into our marriage he was diagnosed with liver disease, he had not purchased life insurance before his diagnosis, and now he has not been able to qualify, of course. What life insurance options are there for people with pre-existing conditions? Well, pre-existing life-threatening conditions is the key word. Well, number one, the thing you're going to want to do is follow the baby steps very closely because the more you build wealth and the more you're clear of debt, the less you have need for life insurance. In other words, if you're debt free and you have a million dollars in mutual funds, you have no need for life insurance.

You probably could survive on the investments where you, God forbid, to lose him. So, in other words, asset building and debt freedom causes you to become ultimately self-insured. So that's your long-term goal. That doesn't fix you today. Today, you've got to go with what's called guaranteed issue policies. And they're basically gimmick policies,

and they're roughly five times as expensive. It's guaranteed issue regardless of medical condition. The biggest one, and it's about 5X what normal term insurance is, but it's insurance that he can actually get, is mortgage life insurance. It's a complete gimmick, and it's about five times more. So don't buy it, folks, unless you cannot get life insurance otherwise. You just buy term insurance to pay off your house. But in your case, Aaron, what you're going to do is get mortgage life insurance.

Call your mortgage company. They would love to sell it to you. They make a ton of money on it. And that pays off the mortgage in the event he dies. That's a nice chunk right there. That's a big help right there. Okay? Now, to get other insurances, number one,

if you can get something through his work, it through a group policy at his work, it may be, it's not always, but it may be guaranteed issue and you may be able to load up on it there. That's probably the least expensive of all of them. You could find other guaranteed issue policies are typically the gimmick stuff you see on TV or it comes with your checking account and that kind of thing. You can get $10,000 or that kind of thing. But some of those are like 10X. In other words, what you paid for that $10,000, if he were healthy,

he could have bought $100,000 in term. But at least you got something. So, I mean, if you pick up four or five of those and you've got some, you're not just getting slammed with the premiums too heavily. Maybe you got $50,000, $60,000 in extra coverage, and you got a mortgage paid off. You're starting to get to where you're in better shape. I doubt you're ever going to get to the 10 to 12 times his income on him

that we normally suggest because I don't know how to pull that off for you unless you just made it you'd pay you'd be paying too much for it to make it worthwhile but let's get the house paid off and get some other cash around if god forbid something happens to him from some of the guaranteed issue policies beyond that um what you would do of, is continue to revisit his health with traditional insurance, talk to Xander and find out under, you know, what number of years and so forth can you get there and that kind of thing. So, all right, can you actually get a policy issued? Cesar's with us in Baltimore.

Hi, Cesar. How are you? I'm doing good. How about yourself, Dave? Better than I deserve. What's up? So I just accepted a new job as a full-time ministry, and I will have to be moving from this side of the country all the way to Idaho.

I'll be making that move in July. So the ministry is paying for all of our moving expenses, so we don't have to worry about that. Go ahead. It's going to be a significant loss and downgrade in payment from what I'm making now. So, with that in mind, we decided to start Financial Peace University, knowing that we think we're going to be tighter in Idaho.

And we just now finished Baby Step 1, but my question is this. Would it be okay to stay in Baby Step 1 until July, until we move, and just take these next few months to just save and save and save so that we have a little bit of a cushion when we move there for like first month's rent and to be reselling a lot of the stuff.

Yes, that's exactly what you need to do. That's exactly what you need to do. You need to make the move and then start. So in a sense, what you're doing, you're not staying in baby step one. You're just pushing pause on your baby steps. You're pushing pause on your total money makeover, and you're piling up cash to make the move. And then when the smoke clears, any cash above $1,000 you got left over after the move, and you're settled in and in a rhythm again, you use that when you push play on your debt snowball.

Wonderful. And so if you had extra cash. In other words, it's impossible to save too much because any cash you've got left over after this, you're going to use to restart when you push play again. James is with us in Lewiston, Maine. Hi, James. How are you? Hey, Mr. Ramsey. Thanks for taking my call.

Sure. What's up? So my question is, about two years ago I purchased a rental property and my primary house and I did stupid truck payments and got out of that. Finally on baby step six and I get about $30,000 in equity in my apartment building and I owe $106,000 on my house. I'm just curious, would you recommend selling that apartment building, selling my truck and putting that towards the house? That would put me right around like $60,000 on my house, and they snowball that.

What's your household income? I make about $65,000 a year. How much do you own the apartment building? I own 34, and it appraises at like $70,000. It's a three-unit. Yeah. What about your home? What do you owe on that?

I owe $106,000. Okay. And what about your truck? It's paid for? Paid for. Good. Okay. No, I'd keep it all.

Let's just work it in Baby Step 6. Okay. It slows down when you get to Baby Steps 4, 5, and 6. It's just going to take you some time to work through that. But you'll get there. You're not that far out. $130,000 makes you 100% debt-free with an apartment and a house. That's not a bad thing.

Tucker is with us in San Diego. Hi, Tucker. Welcome to the Dave Ramsey Show. Hey, Dave. How's it going? Better than I deserve. What's up? Awesome. the Dave Ramsey Show. Hey, Dave. How's it going? Better than I deserve. What's up? Awesome. So I just had a quick question for you. I'm newly married, and we've been married for about two years. Very happily, no issues or anything yet. And I'm

working on paying off my debt. But I watched one of your videos about a post-nuptial agreement, and I just wanted to get your views on that for a newly married couple with no assets or anything like that. Yeah, you watched one of my videos which said, why would you need a post-nuptial agreement? If you watched one of my videos, that's what it said. Yes, yes, I did. So why would you need one? For future assets, because I'm following your entire plan and plan on being retired.

Is she not going to? What, for your plan? Is she not going with you on this journey? She is. Then why would you need a postnuptial? To protect you from your wife who is going on the journey with you? Yes. Why would you need to be protected from her?

You never know. Both of our parents are divorced. I'm sorry for that, but here's the thing. There's probably a reason they're both divorced. And so the old-fashioned marriage vows say, for richer, for poorer, in sickness and in health, unto thee all my worldly goods I pledge. The only time I recommend a prenup, or for that matter, a postnup, which is very rare, would be if someone has extreme unequal wealth. If you had $10 million and you're marrying a lady who has nothing.

Yeah, I probably would do that. So I told Sharon if I die and she decides to get remarried. You had $10 million and you're marrying a lady who has nothing. Yeah, I probably would do that. So I told Sharon if I die and she decides to get remarried that she would need a prenup because very likely whoever she's marrying would not have the same level of wealth that she would have. It's extreme. And really, it's not even to protect you from the person you're marrying. It's to protect you from your crazy freaking relatives who have influence over them. That's the problem in these situations. And that's only when it's weird wealth. Dude, you're both broke. You're starting off life together. Hold hands and look

towards the rocking chair on the porch and walk all the way there, man. Don't talk about anything else. That puts us out of the Dave Ramsey Show in the books. We'll be back with you before you know it. In the meantime, remember, there's ultimately only one way to financial peace, and that's to walk daily with the Prince of Peace, Christ Jesus. In the middle of these uncertain times, Ramsey Solutions wants to give you some hope for the very first time ever. We're giving you Financial Peace University free for 14 days. Go to DaveRamsey.com slash hope so you can watch from home.