The Ramsey Show - App - Should I Move To Start My Career? (Hour 2)

Episode Date: May 19, 2021

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Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studio, this is the Ramsey Show, where America hangs out to have a conversation about your life and your money. My name is Anthony O'Neill, Ramsey personality and host of the popular YouTube and podcast show, The Table with Anthony O'Neill. And today I'm hosting, I believe, the baddest radio show in the world, All On My Own, because Dave Ramsey and other personalities are out there impacting and serving some great young entrepreneurs and helping them build wealth and expand their businesses. So and today I want to talk to you about your life, about your money, about maybe how to start a business, maybe how to get the motivation that you need.

If you want to talk about relationships, what are my thoughts on that? I can give you my thoughts. I can't give you expertise because I am not married, but I am a single man who have experienced a lot of things throughout my single season. I don't have a problem giving you my input but if you want to talk about money i could talk about that all day long all right so give us a call 888-825-5225 888-825-5225 kelly is in the booth uh she will go ahead and uh patch you through to me if she approves if not hey this is kelly's show It's not really my show. I'm just answering the phone calls that she puts through. Erica is with us in Fresno, California, the beautiful state of California. Good afternoon, Erica. How can I help?

Hi, Anthony. Thanks for taking my call. Yeah, no problem at all. Thank you for calling in. How can I help you? Well, I'm 33 years old. I'm married. I don't have any kids. I don't have a mortgage. My husband and I are renting right now, but we have $90,000 in student loan debt combined. We don't have any other debt. And I've had a long life dream to work in veterinary medicine. There is a school in Arizona. I have about eight prerequisites to complete before I can even apply for the school. But my question is, should we relocate and move to Arizona so I can take the prerequisites for in-state tuition and try to pursue that dream there while in Baby Step 2? Or should we stay put in California where we're renting now

and just try to take the prereqs at local community colleges and just continue to save money, pay off debt, and hopefully cash flow the program? Should I move or should I stay put? Erica, let's break this down a little bit. What's y'all's um household income right now 95 000 a year 95k a year okay what does your husband do uh he works for uh the county and after school programs so he oversees multiple schools within the county okay cool and are you working as well? So is

that combined household or is that majority his income? It is combined. I currently work for a city government, specifically the fire department as a senior administrator. Okay. Um, so let's say if we went with the option of moving, uh, because when we look at the cost of living, the option of moving uh because when we look at the cost of living the cost of living compared from california to arizona is cheaper okay um will we be able to keep the 95 000 if we go to arizona like can you all find jobs in arizona and keep that same amount of income or maybe lose maybe five ten grand max maybe go down to 85. Could you do that? I believe we could. I believe that we might move over with the income, maybe 80, 85. 80, 85. All right. And we're sitting at $90,000 already in student loan debt.

And then you're going to go over there and not rack up any more student loan debt, you're thinking about cash flowing that, correct? If you did go to Arizona. Correct. Okay. And then you'll be sitting in baby step number two to do that. So let me ask you this question. Let's say you get everything that you need.

How long would it take you to get through the program? If you did it from start to finish, how long would it take you? From start taking prerequisites to completion total of five years five years okay and how much are you making a year right now uh i'm making roughly about in about 45 000 a year and in five years and in five years once you complete what's your income goal i mean what what's the bare minimum you can make uh in this particular field uh for arizona specifically i would say anywhere between 100 to maybe 125 or 130 a year all right all right. All right. So now we have some options. OK, I'm not going to tell you to not move to Arizona. I am only moving to Arizona. If I can have my income around eighty five by going to community colleges and pay for it that way.

Because then now what we've just done is we've lowered our expenses. Um, we're not buying a house we're renting. We're living below our means. So you don't have any kids. So y'all literally are renting a one bedroom, you know, 800 square foot apartment. Uh, if you're going to go down this route. And so I don't have a problem with you going to Arizona as long as you use this opportunity to lower your expenses while still keeping your income up higher. And you are really focused over these next five years.

Now, here's my only problem. And I'm going to be honest with you, Eric. I have a problem staying in debt for another five years because that's going to put you all at about 38 years old. So this means right around 40, you're still not investing. OK, and so what I would advise, I would advise you to give a call to Ken Coleman and figure out what's the best route for you on this career path. I know you said that's a dream. Is it a dream because of income? Or is this a dream because this is what you really want to do for the rest of your life?

Like if money was not an issue, if money was not a problem, would you still want to do and go this route with this career? Yes or no? 100%. Yes, absolutely. Okay, cool. Great. So my advice to you is sit down, talk to your husband,

go through those steps. Hey, let's start looking for jobs. As long as we can keep our jobs before 85, in between 85 and higher. Number one, will our apartment costs go down? So if we are in California and we're paying $2,000 a month. Can it go down to $1,500 a month? Cool. Great. If you can answer yes on that, cool. Great. Look at your community colleges. How much is that going to cost you? Can you afford to pay cash for that and not put any more

debt on top of this $90,000? And then from there, I am okay with you all transitioning over to Arizona because you're going to be lowering your expenses. You're going to keep a high income. You'll be able to cash flow this experience. And in five years, going from $40,000 to about $100,000, $125,000, that's a good return on your investment. Now, once you get out of college, Erica, you know what I'm about to say, right? You all need to attack this debt like crazy. Yes. Yeah, absolutely. You all need to attack this debt like crazy. Yeah.

Yeah, absolutely. You all need to get out of this $90,000. And I don't like the fact that you're sitting in it for five years. And so if you all can figure out a way to cash flow to college and your husband maybe get an extra job, you maybe get an extra job as well to start attacking this debt a little bit because I want you to finish his five years with no debt i would love that you know but um man i'm praying for you i think the arizona is a good move because it will save a little bit of money and so uh just just stay focused don't rack up any more debt this is anthony neal right here on the ramsay show we'll be right back Our famous $10 sale is ending soon.

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slash giveaway. Hurry! The $10 sale and giveaway end on May 31st. No purchase necessary. Must be 18 or older to win. Welcome back. Welcome back to the Ramsey Show. This is Anthony O'Neill, Ramsey personality and host of the popular YouTube show, The Table with Anthony O'Neill. And you guys, when it comes to making big life change, like buying a home, getting married, having a baby,

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How can I help? Hey, Anthony. Thanks for taking the call. Yeah. So I had a conversation with my son. He's 11, and he said he's playing this game at school called the Game of Life. And so he told me at dinner that he got a job in the Game of Life as a lawyer coming out making 85K. And I was like, great, boom, that's awesome, man.

Well, he hit me next with the card also said he had $75,000 in student loans. And I about dropped my fork. So I was telling him all the reasons why I wouldn't take that student loan on because our family, we are doing it as a family. We're in our debt-free journey. We're about halfway through. We paid off almost $140,000 in two years. So they see us.

They see what we're doing. And how do I have that conversation to give him his why he doesn't want to do that? And a second part of this is do I approach the school, the teacher? How do I do that at all? Is that something I could do? You know, to the second question, I kind of like the fact that the school actually put student loan debt in it because it created a conversation with you and your son. So I'm not opposed to the school saying, hey, in this game, you're an attorney.

You're making $85,000 a year, but then you also have this amount of debt. I think that's very good to bring that awareness up. But I just hope that the school is also offering and educating them on how to avoid student loans. And so if they're not doing that, I would bring that up to the school, Josh. I'm like, hey, I like this game. I like what you all are doing because it created a good conversation at the house. We're teaching this because we want to avoid debt and we want to avoid student loans. I know you all have to teach, you know, student loans and that option. But are you also giving them other options? Are you also educating them on trade schools, community colleges, grants and scholarships? Are you educating them on how to do this thing debt free? And so that way you could challenge the schools on that on that end now on your end josh man i i think you're in a great

place um at 11 years old your your your son is coming home saying hey dad this is what's going on i think now this is where you sit down with your 11 year old and this may go over his head but over time um um, with continued conversation and as he grows and mature, he will get it. I think you sit down with your son, Josh, and you tell him exactly what you and your wife are going through right now, how you're paying off debt and how debt has stopped you all and maybe slowed you all from doing things as a family that you may want to do. Um, and I think you just tell him the truth and in a way that he can receive it. So I mean, your mom, you know, we have about 200, 300 thousand dollars in debt and a lot of that is student loans.

But, you know, we can't build our dream home right here in Birmingham, Alabama. You know what, son? We can't really take our family on a type of vacation. We really want to do because we have this debt. And so if you can go to school, this is why your grades are so important. If you can get good grades, if you can start saving right now when you're working around the house and when me and your mom give you money for doing your stuff around the house, if you can save, if you can go to college 100% debt free, you can be further than me and your mom when you get our age. You can be living in your dream home when you have kids.

You can travel around the world. You can enjoy the life. You could be ahead of your peers. And I think if you start really exposing him and having that conversation at a very young age, man, I think, Josh, you are setting your son, you're setting all of your kids up to be successful down the road. But I wouldn't be upset with the school of exposing them to student loans in that way. I would only be disappointed with the schools if they're not teaching them.

Hey, student loans are an option. But let me give you another option, and that is no student loans. And how do you do no student loans? Well, your grades got to be on par. You need to be a straight A student really to be honest. You can look into grants. You can look into scholarships. You can make sure that your college resume is good. So those are the type of things that I would really start having a conversation right now. Josh, makes sense. Awesome. That makes sense. Thank you.

Hey, man, thank you so much. You know, when I really think about this, you know. On one hand, I get a little disappointed with the school system, but then I'm grateful with the school system because we all need to read. We need to learn how to read, write, add and process information. I think that's very, very, very, very important. And our school systems, I believe, are doing the best that they can do but isn't it funny that the school system and college the main goal of it is to give us education so that we can go out there and get a career aka a job aka some money to live off of but so they'll teach us how to get the money generator but they will not teach us how to be good stewards of our money, how to properly use our money. And so school teachers, thank you so much for what you have been doing.

Thank you so much for especially this last year of adapting and adjusting to COVID to this pandemic and jumping online and teaching our young people. But I want to challenge you school teachers to start teaching financial literacy inside of our schools. Our young people need it tremendously. If someone would have told me back then in them days that student loans is one option. But hey, you know what? Going to a community college is not a bad option. You know what? Maybe taking a gap year and working for one year to save up to where you can go to school is not a bad option. If someone would have told me that, hey, you know what, Anthony? You know, going to welding school is not bad. You know, being a welder, you can make $80,000 a year after a year.

If someone would have told me so many different options, my life probably would have been a little bit better. And so I want to commend you, Josh, for calling in, asking that question. To all the parents out there, have the conversation with your kids. If our young people can learn how to do the latest dance, learn the latest lyrics to the hip-hop songs or to the country songs, our young people can learn how to save, how to give, and how to live below their means.

This is The Rampage Show. welcome back to the ramsay show my name is anthony o'neill ramsay personality and host of the popular youtube show and podcast the The Table with Anthony O'Neill. Go on over to youtube.com forward slash Anthony O'Neill and you'll be able to subscribe to the channel and get some real encouraging stuff. Before we go to Chelsea and Little Rock, I want to encourage you all. My show is for all people, but I'm really focused on that millennial, that young 25 to about maybe max 40 year old individual, because I think those are the ages that we have a lot of people who focus on the younger generation, right? Then we have a lot of people who focus on the older generation, but no one's really making content that is relative and relatable to that younger, hip, vibrant generation. And I just felt compelled to say, you know, hey, make content for people like myself.

And so the conversation over there is a little different. You know, our topics are a little different. We talk everything from relationships to building true wealth, not just having fake rich. I talk about Gucci bags. I talk about, you know, a lot of different things over there. It's a little different, but it's growing massively already over 250,000 subscribers. We talk about race issues over there. You know, we talk about culture. We talk about the impact of the pandemic. And so I want to encourage you next week. We have a phenomenal celebrity coming on. That's going to change some lives. So I want to encourage you to go check it out.

Subscribe. Share it with your your your your kids. If you have kids in that age bracket in the 20s and 30s. And again, it's for everyone. I don't want to exclude no one. But I do want to make sure that I'm being intentional in helping out this younger generation. So Chelsea is with us in Little Rock. Little Rock. Hey, Chelsea, how can we help? Oh, my gosh. I'm so excited.

I absolutely love you, Anthony O'Neill. You are the best. And I do watch your show, The Table, on YouTube, basically. Oh, that's awesome, Chelsea. That's awesome. Thank you so much for watching. Hopefully you like it, and how can I help you today? So today, you know, because I do listen to their show a lot now,

I read and listen to a lot of content. I am a part of that millennial generation, 33, where I want to get into real estate investing, start kind of my own businesses, things like that. But I am a big follower of Dave Ramsey and all of you guys. And so my biggest question is, I have student loan debt. I do have car loan debt and just a little bit of credit card debt, $2,000, which I have been paying down tremendously. But my question is, is it wrong or right to still try to pursue starting a business even though I have student loan debt.

Well, how much... Back story, I am divorced. I am a single mom. I'm also a maiden four-year-old. Okay. And I'm a registered nurse. But I don't work on the floor. I'm a case manager.

Okay. Cool, cool, cool. Great. How much debt are you totally in right now, Chelsea? So if I were to total up my car loan debt and the student loan debt together, it's about $95,000. Okay, $95,000. Okay, so we're going to round it up to about $100,000 because you said you have some credit card debt right around $2,000. So we're in about $100,000 worth of debt.

What's your total take home? What are you in a year? So on paper, it's $64,000. Okay. What is it not on paper? Because you said on paper. What are you breaking home? Well, you know, the amount that they tell you,

but then when you include taxes and 401ks and medical, you know, the take-home is a little different. Okay, cool. Do you have child support with inside of that? Not enough, not yet. I just filed for full custody this past month, which that was a nice amount I had to pay for a lawyer. Okay.

Now, what kind of business, because nursing is real good. I mean, I know all about nursing, you know, very well. And so, I know nursing, there's a lot of great options in that area. So, what do you want to do on the side? Do you want to do something, do you want to start a business around nursing? Or do you want to do something, do you want to start a business around nursing, or do you want to do something totally different? So after being in the medical field for quite some time, no, it's not necessarily in nursing, but I started a blog for single moms called Christian Kirby Cool.

And so through that, I like to kind of help other women and promote other women to kind of get their stuff together as far as learning about life insurance, life insurance on the side, you know, term life insurance in primary care. Okay. And then I just started my other business, Closet Couture, where I help people organize their closets, virtual styling, things like that to kind of show themselves, like, instead of spending more money on clothes, shop out of your closet. Well, you can't shop out of your closet if you haven't cleaned your closet to see what

you have. So I help with that. That's what that business is for. And then the last thing is the reason that God gave me, which is to help single moms get into home ownership. And so it's kind of a real estate investing business that I would like to get into. But I was like, wow, this is a whole lot. Let me get some advice on what's the best way to tackle all these things.

Hence why I called today. Yeah. And that's why I call it today. Yeah. So Chelsea, let me say this. I commend you for being a hardworking single mother. I want to first say this. I hear it. I hear the passion in your voice. I hear the hunger in your voice.

One of the things I find wrong with, with us millennials, and I'm putting us in there because I want to make sure that the Americans hear me saying I'm a part of this as well. We tend to have a lot of ideas and we tend to go after all of them rather than having a clear vision with clear priorities. You know, one of our one of my good friends and fellow personalities, Christy Wright, says we can't really balance things. We really have to set priorities and focus on one thing at a time. And so for you, I hear three great ideas with the career while being a mom. You know, I think for you, I would choose one thing right now on the side that one is not going to take any finances from you so that way you can focus your finances on paying off your

debt and it can bring in more money now i like the blog thing because you know that's just you putting your thoughts out there but that virtual styling thing and going through closets i mean listen we all know in a respectful way ladies need some help with their closets all right i'm gonna turn this way because kelly's over here looking at me and all the ladies outside looking at me. So I'm going to look this way because I just want to be honest with you. OK, so you can make some money helping ladies get their closets situated and looking good. So if I was you, if I was you, I'm I'm focusing on my career, trying to figure out how can I make more money over there. The number two is on the side. I am also focusing on, hey, how do I focus on this one business?

How do I get this to generate me another two, three grand a month? Virtually styling people, virtually helping people get their closets kind of organized. So I would focus really on that i have no problem with you starting that business because it will not take away money from your debt payoff right now and baby step number two it can honestly add money to help you pay off your debt and eventually if you do it right it could eventually take over and you can run that full-time and then venture off into something else um real quick before I go to break. Have you read Chrissy Wright's book, Business Boutique? Not yet.

I hate I missed her opening for her. It was like a few weeks back. Yes. It was like a few weeks back. It was like a few weeks back. It was like a few weeks back. It was like a few weeks back. It was like a few weeks back.

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It was like a few weeks back. It was like a few weeks back. It was like a few weeks back. It was like a few weeks back. It was like a few weeks back. It was like a few weeks back. It was like a few weeks back. It was like a few weeks back.

It was like a few weeks back. It was like a few weeks back. It was like a few weeks back. It was like a few weeks back. It was like a few weeks back. It was like a few weeks back. It was like a few weeks back. It was like a few weeks back. I feel you. I'm telling you, I listen every week to your channel. I feel you. I feel you. Well, don't kick yourself.

I want you to stay on the line. I'm going to have Kelly give you a copy of her book, Business Boutique. You need to read that. It would definitely help you start off correctly because she's going to show you how to turn that little hobby that you enjoy doing into a money generator. Then also, Chelsea, I want you to look into her academy. Go to Business Boutique. Not academy. Business Boutique Conference is coming up this fall. You need to do everything you possibly can to get there

because Chris is going to teach you how to turn this thing upside down and really make a lot of money. And ladies and gentlemen, I'm speaking at the conference this year too, and I'm talking about money. So go to RamseySolutions.com to get some more information about that but centerline kelly would take good care of you this is the show and we'll be right back welcome back to the ramsey show my name is anthony o'neill ramsey personality and um i have a interesting question which i thought i should answer uh rolando from instagram sent me a dm saying hey do you guys have a teen toolkit i can teach my youth group absolutely

we sure do it's called the teen entrepreneurial toolbox kit teen entrepreneur uh uh toolbox kit and i want to suggest go to ramsolution.com check it out i think one of the best ways we can teach young people um how to deal with money is we got to start teaching them that money comes from work. OK, money doesn't grow in trees. It doesn't fall out of sky. And we got to stop parents. We got to stop teaching our kids that if you make up your bed, you're giving them money. I don't believe in the term allowance. I grew up on allowances to where I got like ten dollars a month for just making up my bed and washing the dishes. That was my responsibility to contribute to the home. I think we got to start teaching our young

people, go out there and cut grass. If you're 10 years old, go out there and rake some leaves or help one of your senior citizens next door bring in the groceries. We got to start teaching our young people that money comes from work. And I also believe that entrepreneurship is a great way to do that. And so my team and I sat down, we really created this great toolbox kit that teach young people how to be true entrepreneurs. We teach them the elevator pitch. We teach them how to actually budget, how to name the prices. We teach them even how to legally get their business started with the state, with their county. So I definitely would encourage you to to get the toolbox kit. We teach them everything on how to start a legit business at 10 years old, at 11 years old, at 12 years old. Think about it. If you're a young person can can start making an extra two, three grand throughout the summer.

What kind of young person are we developing? We're developing a smart, bright, young individual that will understand the value and the importance of working. Pablo is with us in Goodyear, Arizona. Good afternoon, Pablo. How can I help? How are you doing, Anthony? Thanks for taking my call. Yeah, yeah.

Hey, well, the reason I'm calling is because, well, we just started Dave Ramsey's program through our church, and we're getting started with the Baby Steps. We've done Baby Step number one, so we got that money set aside. And now we're on step number two, attacking the deaf. We do have $22,000, just a little over $22,000 in debt, which is no credit cards. It's just our vehicles. Okay. in debt, which is no credit cards. It's just our vehicles. One of them is

my wife, which will probably be able to pay off this month, by the end of this month, which will leave us only about $18,500 in debt. What kind of car is this in $18,000? What kind of car is that? It's a truck.

What kind of truck? Chevy Silverado. Okay, you'd be big boy. Okay, Silverado. Alright, sounds good. Yeah, and we do have a third car that we purchased for our son. It's paid off. We did have a

home, which we sold when we moved out here to Arizona. Okay. And we have that money set aside. My reason for calling is because my plan for this, I don't know what you recommend for it. I do want to tax this debt aggressively, and I do want to fund, you know, the emergency fund with that savings money.

And, you know, whatever's left, maybe put it towards a new home down payment. And then from there, just start building up, you know, um, for that to where we need to be. Um, but, um, I was just calling to see what would you recommend, uh, what would you advise? Advice on what exactly? What do you, what do you ask? On, on, on what to do, like, like, like, like, should we use that money, you know,

saving from our home sale to pay off this final debt, or, you know, should I pay, I mean, should I sell my truck and just pay that off, or what should I do? Let's talk about this. How much money did you get again from selling your house? Well, we have $60,000 uh just a little over 60,000 60 or 50 60 60 okay 60k in the savings right now from selling your home okay um what's your annual income right now what are you all bringing in combined income

uh i'm the only one that works works so it's only me I just started a new job about two months ago and it fluctuates so it's anywhere within $3,000 to maybe

$3,500 a month take home okay alright and so we got twenty two thousand dollars in debt right now it's two vehicles no credit cards no student loans nothing else we just have two vehicles correct yeah just two vehicles and like i said um uh by the end of this month we should be able to pay off my wife's car so it should only leave us with about $1,500. Okay, and that $60,000 is sitting in your savings account, liquid cash, right now while

you're talking to me, correct? Yes. Okay, cool. So yeah, this is what I'm going to recommend. I'm paying off both the vehicles when I hang up the phone. Okay. And here's why. You're going to save yourself on interest, so you're going to save a lot of money.

You're going to be 100% debt-free. You're still going to have right at about $38,000 in your savings account from that. I'm thinking in Arizona where you need right now, the cost of living there, you should be okay with $10,000 sitting in your savings account for emergencies, right? So then that's $28,000. Talk to me. What you thinking?

Yeah. Three months is fine. I was looking towards more like doing six months instead. That's fine. If you want to stretch it to six months, that's cool. So you can leave $20,000 in there and you'll have $18,000 left in your savings account. Now, do you plan on living in Arizona for the next five years? Yeah.

Okay, cool. So here's the thing. So let's walk through the first three baby steps. First three is $1,000 in your emergency fund. Baby step number two is pay off all your debt, excluding the mortgage. So you all don't have a mortgage, but you have $60,000 from your mortgage. We teach in baby step number two, you use all of your income to pay off all of your debt, excluding your mortgage. So that's $60,000.

You're going to make some wire transfers today and you're going to be 100% debt free. Then in your case, you want six months of emergency fund, which is great. You have a family. You say your income kind of fluctuates. I'm totally fine with that.

So going ahead and put the six months in there. Then from there, man, I will go ahead and move over to baby set number four five six and seven we do all those at the same time start investing into your 401ks and then start saving for your kids college because you say you have a son and also start saving for a home you're going to have eighteen thousand dollars uh in your savings account on top of your fully funded emergency fund.

You're in a good place, healthy. I'm telling you right now, within the next year, you can be in a beautiful home. You can start saving for your college. You can be investing 15%. So that's what I'm doing. I'm paying off the cars today. No ifs, ands, or buts. As soon as I hang up at 257.50, I am calling my banks who have the car notes, and I'm paying them off. All of them.

Not by the end of the month. By the end of the evening, I'm paying them off. So I'm going to put you on the spot. I'm going to put you on the spot in front of 12 million people. Are you going to pay off your cars today? That was my plan, yes. No, no, I didn't say that was your plan. I said, are you going to pay off your cars today?

That's a yes or no question. Yes, yes, I will. That's what I'm talking about, Pablo. That's what I'm talking about. Right here, 12 million people. He just became debt free. That's what I'm talking about. I love it. Right here. Not with people. He just became debt free. That's what I'm talking about. I love it.

Right here. Not with Dave. Not with Rachel. Not with John. With Anthony O'Neal. That's what I'm talking about, man. Well, congrats, Pablo. Enjoy it, man.

And I promise you, man, it's going to be worthwhile. You're going to thank me later. You're going to thank yourself later for making the right decisions. Remember, successful people do what unsuccessful people are not willing to do. Unsuccessful people are not willing to be uncomfortable and to make the uncomfortable decision. That was an uncomfortable decision to take money out of their account, pay it all off. But you know what? Sooner or later, he'll be right back to where he wants to be because he set himself up for success. Hey, you guys, that's it for this hour. This is

The Ramsey Show. This is James Childs, producer of The Ramsey Show. Did you know The Ramsey Show is one of the most popular podcasts in the world? Subscribe or follow today wherever you listen to podcasts.