The Ramsey Show - App - Should We Start a GoFundMe To Pay Off Our Debt? (Hour 1)

Episode Date: June 21, 2022

Dave Ramsey & George Kamel discuss: What to do when you have no idea where your money is going, Should you start a GoFundMe to pay off debt when you get married? Choosing between career options. Want a plan for your money? Find out where to start: https://bit.ly/3nInETX Listen to all The Ramsey Network podcasts: https://bit.ly/3GxiXm6

Live from the headquarters of Ramsey Solutions, it's the 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. This is the Ramsey Show. We help people build wealth, do work that they actually love, and create actual, real, amazing relationships. George Camel, host of the Entree Leadership Podcast. Ramsey personality is my co-host today. Open phones at 888-825-5225. George, I am excited. We announced yesterday that we are doing a free live stream. It's going to be about an hour long. It's completely free, and it's all about, well, we're calling it the

Real Estate Reality Check. I love that. I had a name that was not as good. It was The Struggle Is Real Estate. That one did not pass the marketing vibe check unfortunately yeah when we have to do a rim shot after your marketing i know if you have to go right after that come on guys for everybody to get what you're saying then george it's a bad slogan way better name reality check and that's exactly what people need to do yeah so this is gonna be a lot of fun you guys july the 14th rachel cruz george cam on i're gonna jump in front of the camera. We're going to spend an hour with you, walking you through facts. Because here's what happens. That's why we call this reality check, actually.

The real estate, the realty reality check. Because here's what happens. There's two things where people go completely down the rabbit hole like they're on LSD. They lose their minds, and they make up these stories in their heads one of them is conspiracy theories and one of them is real estate i've been doing real estate since i was 18 years old so i've done i've had a real estate license 42 years wow okay so i've heard it all and the one that no one gossips in america like they gossip about what a piece of real estate sold for. They just make up crap.

They just make it up. They go, well, I heard the neighbor. I heard the neighbor got $2 million for that. I heard the neighbor. Or I heard they knocked a half a million dollars off the price. Yeah, but did you hear that the entire garage had fallen in and the septic system was bad? Did you hear that part?

That there's a reason they knocked it off. It's not because the real estate market is crashing. That there's actual facts and reasons and data under this. Did you hear? I heard the neighbor. When someone starts their real estate diatribe narrative with, I heard the neighbor, you're getting ready to hear bad information that some goober made up in the rumor mill, and it's just not true.

You needed to actually check the actual courthouse and see what the house actually sold for. Oh, my neighbor's asking $2.5 million. Well, hey, so mine's up for sale for $8 million. I mean, that doesn't mean any goober's going to pay that. What somebody's asking has nothing to do with reality, because there are some people smoking drugs when they put their house on the market, and they decide to ask that. You know, I heard the neighbors asking, who gives a crap?

What you need to deal with is an actual facts. Charts and graphs. That's what we're going to help you with. We're going to teach you where real estate prices come from. Is there going to be a housing crash? No, there's not. Spoiler alert. And I'm going to walk you through exactly with actual math and data and economics and like facts and stuff instead of narrative and rumor. I did not know.

And drama. You are stirring up the pot, Dave. You just said, hey, the market's not going to crash. You would have thought. I mean, people are up in arms about this. You piss people off when you come up against their little conspiracy theories. But here's what's happening. If I'm hell-bent on the world coming to an end, I don't like it when someone says it's not.

And I will give you facts and data that I make up from some conspiracy website. Because listen, 100% of what you hear on the Internet is true. Abraham Lincoln said that. So there you go. It's amazing. Oh, my gosh, people. Seriously. All right. So we're going to do actual facts and actual data we're going to teach you about supply demand and how that works we're going to teach you what recessions and inflation and interest rates do to

real estate markets and we're going to teach you tell you exactly what's going on and then you're going to understand where the real estate market is going to go in the next six months to two years and you're going to be able to make good like adult decisions instead of like a screaming beagle chasing a rabbit some of you people lose your minds calm down you cannot think when you're panicking when you're showing what to do when you're greedy and when you're afraid you make bad decisions yeah and if you're whether you're looking to buy or sell we're going to show you the right steps to do it so that you don't have buyers or more so that you don't make a bad decision there's a right time to do this financially yeah and there is some things

changing for sure the market is definitely people are seeing price cuts because it was overpriced and now they're going david's crashing i told you there's a difference in price cuts on unrealistic asking prices. That's like your crazy neighbor is asking too much. And actual value drop. Okay. The house appraised for this. And I, you know, it appraised for $800,000. But we put it on the market for a million.

Thinking we were going to get it. Just to see. Thinking we were going to get it. The market's hot. Because we're those people, you know. And now we've realized the market's not going to actually sell for over appraisal, and so we're going to reduce the price to appraisal, and now we call that a price cut. So now you've got the house listed for what it should have been listed in the first place.

Ladies and gentlemen, that is not a price cut. That is called a reality check. You dialed in and realized, okay, we're no longer in the land of auctions and we're actually going to sell a house so uh because you know you put a house on the market today you're not you may in some areas get 83 offers over the weekend but most of that's done and if the only time you've existed in the real estate market is when you put a house on the market and it's you got 83 offers in 48 hours if you have existed only in an unrealistic real estate market that is that i've been doing this

42 years i've seen that happen for about two years the last two years prior to that i've never seen people multiple offers on a single property was very unusual prior to that and 80 offers on one property in 48 hours was completely unheard of completely unheard of so if that's your only understanding of the real estate market you don only understanding of the real estate market, you don't know how the real estate market works. You know, you were dealing in fantasy land. And so when things slow down, it feels like a crash. It's not a crash.

Because it's been on the market for three weeks. It's a return to normalcy, which is actually a really good thing. We could use some of that overall. I love it. So real estate reality check, July the 14th. We're going to continue to give you hints of what we're going to say, which is like common sense and stuff, kind of like we do around here all the time. We don't work in drama.

We work in facts, and we work in data, and all those kinds of stuff. So, yeah, check it out. You can get a free pass to watch this. Get your goober friend who thinks the sky is falling. If you know chicken little personally invite them to watch this okay uh ramsey solutions.com slash reality check ramsey solutions.com slash reality check it is a free live stream july the 14th and if you disagree just hate watch it that's the new thing dave on the internet now you just watch it watching knowing

you're gonna hate it and so you just get riled up the whole time. Going, that Dave Ramsey telling me it's not going to crash. I'll show him in the comment section. And there they are. Yeah, you can do that if you want to. That's okay. I don't care. But I don't really expect to convert

someone who's already... Crazy. You got friends like Rachel know like rachel with the conspiracy theories yes you can't talk them out of it no amount of facts the number of facts doesn't matter okay they're just they've just decided that this is the way it is and they believe this whole narrative that's mythology and so you presenting them with facts just confuses them and it doesn't convert them though it doesn't make them come down off of their crazy land that they're visiting and the same thing's true here if you're just hell-bent and you're

sure the economy's going to crash and anybody that says anything otherwise is crazy you can hate watch this if you want to watch it but you're wasting your time because i'm not going to change and you're still going to be wrong after you watch it so there's that so you know join us july 14th uh we will get in your grill and tell you how this is going to work. Good stuff. We're excited about it. Can you tell? It's all free, by the way. RamseySolutions.com slash reality check. If you don't like it, we'll give you your money back. I just saw a study that really made me sad. It showed that families owning life insurance in the U.S. was at its lowest point since the 1970s. After what we've been through the past few years,

I'm just lost on how people don't make this more of a priority. How are you going to make sure your family needs are met if something happens to you? This is why getting term life is an absolute necessity. Rates have never been cheaper, and the whole process to apply is pretty simple, with many companies not even requiring an exam anymore. This is why I send you to Zander Insurance, and I have for almost 25 years. They'll make sure you get the right protection at the lowest cost possible, and they're there for you and your family every day. I challenge all of you to make sure your families are protected.

It needs to be a top priority. Call Zander at 800-356-4282 or visit zander.com. That's 800-356-4282 or zander.com. George Campbell, Ramsey personality, is my co-host today. Open phones at 888-825-5225. Pam is in Atlanta. Hi, Pam. Welcome to the Ramsey Show. Hey, how's everybody? Great. How can we help today? Okay, so I am calling because my husband and I have finally decided that we need to take care of our financial situation. Good. About three or four years ago his aunt handed us the

total money makeover book and we took it um and we were like no we're okay we're surviving used it for a coaster it was a coaster yeah well then we passed it along to another family member and said oh you might need this more than we do. And we're finally tired of surviving. We're tired of, you know, the paycheck to paycheck and we have everything we need. But I think she's ready, George. That's the biggest step of all. I'm proud of you. So well, thank you. Give us a picture, a snapshot of your financial picture. What's your income and how much debt do you guys have? Okay, so before taxes were right at $130,000, we bring home $9,888 a year between the two of us. Debt is about $76,000.

Also, we kind of built our home. Well, we didn't kind of. We built our home ourselves. My husband really built it on some family land, so kind of like a barn dominium. So we have no mortgage. So all of that debt is credit card loans and then two car payments. Yeah, so I have ordered the book book how can we best help you today okay so i ordered the book from amazon they sent me the wrong book um and i sent it back and now

they're supposedly sending me the right one and i guess i just need i need to hear, I need you to tell me, like just push me in that direction. I don't want to say I'm a skeptic, but, you know, I do a budget every quarter. I used to do an annual budget, and it never worked. It always fell apart. It doesn't work. So I started doing it. Yeah, so I started doing a quarterly budget. That doesn't work either.

Yeah, sometimes it was some months it worked and then some months it doesn't work. Because every month is different. Right. And you're trying to operate off a template instead of reality. This is correct, yeah. So it won't work unless you do one before the month begins each and every month, because that way you're customizing what my income is that month. I know exactly what it's going to be for the coming month in almost every case. And I know exactly what my expenses

are going to be or are really good, accurate projection of them. And so you take all of your income and you give every one of those dollars a name, a mission before the month them. And so you take all of your income and you give every one of those dollars a name, a mission before the month begins. And here's the hard part. Any goober can do that. You can do that on a yellow pad. Okay. It's sixth grade math, third grade math. All right. But the trick is then to actually use that through the whole month and not do anything with money except what's on that paper right and you and your husband pinky swear and spit shake and agree to this is a freaking contract and so the way we always used to teach it in the old days in fpu and it still applies today is

you remember when you were a little kid i was a little kid my little sister would say you're not the boss of me and that's the deal with the budget the budget is not the boss of you you get to tell the budget what it's going to do until the budget is done and then the budget becomes the boss of you right but you're the boss of it until it's down on that paper and then it's telling you what to do so it's saying no pizza tonight goober you're 76 000 in debt stay at home and eat leftovers that's the budget bossing you around but if you're not looking at it and going we're over we're about to go over on our food budget you won't stay home you'll look back at the end of the month and go oh we went over on our budget again budgets don't work no you didn't

stick to it budgets work if you stick to them right but you can't do that on a quarterly or annual basis it does not work though so okay that that that's the part of the budget thing that works and then we're going to show you the whole system to get you completely out of debt and become wealthy all the way through spoiler alert but then the trick is you got to do every one of the steps okay and if you think we're wrong we're not you are we've shown 10 million people how to do this i don't know anything about anything but this stuff i got it dialed in and pam the average the average person to do this stuff they'll get out of debt within 18 to 24 months if they get on a

budget they get serious they start making some sacrifices and based on the numbers you laid out that's you guys you can do this stuff and you've got money coming out of your check for retirement and and or big health insurance or something else because you got too much coming out of your check yeah yeah it's um health insurance and 401k for mine yeah so you're going to stop your 401k temporarily are you getting a big tax refund too um not big no usually between 12 and 1500 okay all right then that's only a hundred dollars a month too much is coming out of your check for taxes okay so we adjust that a little bit but not much and then we're just going to get on beans and rice rice and beans because we want to be out of debt more than we care what somebody thinks and that might mean selling a car it might mean not it will mean not going on vacation or going out to eat until you clean up this freaking mess you made and then you're gonna

be free what would be like to have no payments in the world that would be awesome now we our next step after um we would like to either purchase or build a house like that. No, not now. Not now. You're broke. No, no, no. After all of this is done. Okay.

Let's get out of debt first. That's our goal. Yeah, get out of debt, build your emergency fund, and then you can start piling up cash and build you a house with cash. Okay. That sounds amazing. Because if you don't have any payments, you're going to have this thing called money because you make $130,000 a year.

Right. Okay. So what do I need to do today until my book gets here, the correct book gets here? Well, here's what I want you to do. Are you doing a budget on paper right now, Excel? What are you doing? On paper. Handwrite it in paper. I have a big yellow binder that stays on the book that's coming your way. I'm going to gift you Ramsey Plus that includes every dollar Premium and Financial Peace University. And so in the meantime, what I want you to do is start your Every Dollar Budget. This is digital.

It's going to be easier to track than pen and paper. And I think that's going to do better for you. And watch all the videos in Financial Peace University on top of that until the book gets there. The book is fantastic, and it's going to have stories to inspire you. Financial Peace University is better than the book. If I could recommend one thing, and you're willing to do it, it's those nine lessons. So tonight, we's going to inspire you financial peace university is better than i can recommend one thing and you're willing to do it that's those nine lessons so tonight we're going to sign you up tonight you and your husband watch the first lesson okay and download the every dollar app and start your budget tonight on the every dollar okay and the both of you now you

really have to be committed to the vision of this and it's a life change situation but it's going to set you free if you do it okay because you got to get tired of being tired i'm so tired of living like this yeah very much so yeah hey you got this you can do it places up from here pam we're rooting for you hang on we're gonna also pick up and get you signed up you know i spoke to a group the other day, and I got to listen to a group of guys and gals that had come through a drug rehab center. And what they said was four different ones got up, and they'd been clean and dry for two, three, four years, got their life back, you know, got to see their children again. Their children had been taken away from them. These were hardcore drug addicts uh crack heroin you know everything and they were completely dry and completely cleaned up and i got to listen to them and then

i talked to them a little bit afterwards and every one of them said and the guy working the running the rehab center said uh the people that get clean and stay clean all share one thing. They always at some point say, I'm tired. I'm exhausted. I've been running from these drugs or to these drugs for so long. And the ones that are ready to change say, I'm tired. So when someone says, I'm sick and tired of being sick and tired, like she said, she's tired of this. That's always a really good sign. That's a great indicator. She's not doing heroin.

That helps too. But I the point you're right but the point is that that it's all behavior change and behavior change is behavior change i mean if you look down and you go i'm tired of being fat you know i got you know i looked down i'd gained a whole bunch of weight eating donuts during covid and i said i'm tired of being fat i'm tired and i was physically tired too but That's when life change starts. There's that. You can Google how to get out of debt, but doing it's the hard part. Yeah, I mean, everybody knows what to do. The knowledge is easy to find.

How do you lose weight? You eat less and you exercise more. Away from the donuts, Ramsey. Get away from the donuts, boy. I'll slap it out of your hand if I see one. All right. I'll see how that goes for me. Yeah, see how that works out for you.

This is The Ramsey Personality, is my co-host today. CJ and Jen are with us in Pittsburgh. It says on my screen you guys are debt-free. Congratulations. Thank you very much. Well done. How much did you pay off? $112,020 a month.

Good for you. And your range of income during that time? We started out about $100,000 and ended up at about $125,000. Cool. What do you all do for a living? I'm a prison guard. And I'm a pediatric speech pathologist. Awesomeness.

Very good. What kind of debt was the $112,000? Our mortgage. Oh! Talking to weird people! Yes, we are. Normal's broke. The biggest compliment you can get around here is when we call you weird, because normal's broke.

Normal sucks. And you guys have your mortgage paid for. You're amazing. What in the world? How old are you two? I am 43. And I'm 45. When did you get married?

2004. Okay, so 18 years ago. Yeah. Sweet little CJ and Jen get married, and they're clueless. Did you ever think you were going to have a paid-for house in your 40s? None in our 40s, no, but it feels amazing. Yeah. I mean, you would have thought, most people think they're never going to get paid for it.

If they do, it would be like old people's stuff, right? Yeah. But you're in your 40ss and you got it paid off. What's it worth? Probably around $280 right now with this crazy market. I love it. So cool. Now, this crazy market, you own a house.

Yeah. I love it. You're not worried about interest rates. No, we're not. That's awesome. So 20 months in. You got a better rate than anybody out there that's got a mortgage, I'm just saying. Way to go, you guys. That's amazing.

Okay, what started this journey? How did you guys get on this Ramsey stuff and got going 20 months ago? Like everybody, you know, we had your book, and we read it, and I was ready, he wasn't. He was ready, I wasn't. And then, you know, several years ago ago he came home and said hey i heard on the radio that fpu is going to be at a local church do you want to go so i called my mom and set up nine weeks of babysitting and it was game on he paid off 22 000 of school loans in about six months and then just kept following the plan and then like almost two years ago, the mortgage statement came and

we looked down and we were, had paid about $120,000, but still owed 112. And our original loan was, we'd only paid like 60,000 of the actual principal. And it just set me off. So I, we have three girls and we decided to make a bowl of stones that were 500 each and every time we paid 500 bucks we took a stone out and our goal was to be done before our oldest turned 16 and we accomplished that goal in 20 months instead of 24 so so you made it with four months to spare that's very cool that is very cool so when you signed up for financial peace university and you both and you got the babysitting lined up and you both go over there, before you got to the first class, who was already more on board than the other one?

I think at that time, I read the book, but I need to hear it in person and be with other people doing it. So I think as soon as we signed up for the class, I was ready to go. What about you, CJ? I was ready to go, too. Okay. Wow. So my job was easy once you got there. Yeah.

You needed the social proof. Being a trainer was the thing. Oh, we're not alone. It's always about money, but having that plan and just that first class, we came home and we're just gung-ho, ready to go. Yeah, you can talk about working out, but when you hire a trainer and join a gym, now you're committed. Yep. Yeah, that's it.

That's game on. Wow. You guys are fun. That's great. Okay, you paid off your house. You're 43 years old, 18 years into marriage. You paid off everything. You did it four months early.

Tell people after going through Financial Peace University, what is the main things they have to do if they want to be like you when they grow up? They want to be debt-free. How do you get out of debt? You've got to follow Dave's plan. You have to budget and pay in cash and just commit it. And then we have three girls, and we got them all involved, and they were cheering us on, and they were, you know, picking the perfect stone every month and just super encouraging.

So you just need to do it. They also help to keep us in check because there's times where they would say, that's not on the grocery list. Ooh, they're calling you out. Yeah, they would take things out of my hand and put it back on the shelf if it wasn't on the list. That was our little list. Wow.

She's hardcore. We made sure we stayed true to the list. This kid's going to be a multimillionaire. Not only did her mom and dad set her up because they're debt-free, but now on top of that, she's actually had a model of a person, a grown person with self-control and stuff. Yeah. Wow.

And even I have to say, up until like two years ago, we were still sort of that Davish with that one credit card for gas and tires, and our middle one said to us, if you pay it off every month, and Dave says don't have it, why do you pay it off every month and dave says don't have it why do you have it and i said i don't know and she goes can i cut it up wow each other and said sure so now it's on our fridge and the shape of a flower magnet because our at that time 11 year old said what are you doing that's incredible i love kid. You raised a good one. You're not raising weak women around there, I can tell you.

They're putting stuff back on the shelf and cutting up mom's credit card. This is pretty cool. I like it. Good job, you guys. Very, very, very well done. We're so proud of you. How does it feel to be 100% free? It's just a relief.

There's, you know, I mean, little things happen. We were actually supposed to be in person, but my husband had a little fender bender last week and we stayed home to get the car fixed

and it's more of an inconvenience. There's just very little stress and it's great. Everybody needs to be debt free. Amen. CJ, how you feel? I feel the same way, especially with prices of everything going up. Like, how do you feel? I feel the same way, especially with the prices of everything going up.

It's not fun, but it's not nearly as stressful as what it would be if we had other things hanging over the top of our head yet. Amen. Yeah. Amen. You gave yourself a raise, not having that mortgage payment. Yeah. Way to go.

Yes, we did. Way to go, you guys. We got a copy of Baby Steps Millionaires for you, our latest number one bestseller. That's going to be your destiny. That's the next chapter in your all story for sure. And I think these girls are going to be decamillionaires probably. They're worth $10 million or more. They're already working hard.

They're part-time jobs and making crafts and selling cake balls. Wow. That's so cool. Got a copy of Total Money Makeover for you as well. You can give that away and get someone else's journey started, hopefully. And since you've been through Financial Peace University, you may want to give this away. We're going to give you a gift card for a Financial Peace University membership

for a year and get you into Ramsey Plus. You can either go back through and watch the new videos if you want. They're brand new, and we just reset the whole curriculum. It's the best it's ever been. Or you can give it away to somebody, whatever you want to do. C.J. and Jen, $112,000 paid off in 20 months, making $100,000 to $125,000. House and everything! Count it down.

Let's hear a debt-free scream. All right, girls. Three, two, one. hear a debt-free scream. All right, girls. Three, two, one. We're debt-free! Yeah! Woo! That is, if you ever wondered what it sounded like, that's the sound of a

family tree being chained. That's exactly what the sound is. That was picture perfect. You hear those kids screaming? The ones that cut up the credit card? The one that turned it into a flower, the one that put the stuff back on the shelf, screaming debt-free just four months before she turned 16. See, this is stuff you remember. And when she's an old lady and she's talking to her grandkids,

she goes, I remember back in 022, Mom and Daddy paid off the house. That's before we had $250 million like we do now, kids. That's amazing. That's what it's going to be. I'm telling you, man. This is how it happens right here. This is how it happens. There were so many components of that.

Number one, they committed. They got the babysitting lined up. Then they got around other people who were doing it to encourage them, and that changed everything. And they had visuals. They had the kids involved. They had the rocks in the jar. I love the rocks in the jar i love the rock they made it visceral and so when you do all those things you're bound to become debt-free

sooner rather than later yeah there's too many things barking at you you've got visuals and everything in front of you and you got people around you and your family's involved and um there's accountability and encouragement built into that whole system and going to going to financial peace university you can do it online if you want. We don't care. It's fine. But it's more powerful when you do it in person with a bunch of other people who are having the same fears that you're having.

Who text you and go, hey, we missed you this week. Where were you? We'd love to see you next week. It's that kind of stuff that makes it. Or something not even that nice, like get your butt back in class. That's if Dave's texting you. That's the one you're going to get. I love it.

Where the flip were you? Yeah. People used to cry when I was a coordinator. And that's why he stopped, ladies and gentlemen. Not very good at it. It's Better Talk Radio. This is the Ramsey Show. We'll be right back. George Campbell Ramsey personality is my co-host today. Our question of the day comes from blinds.com.

They have a 100% satisfaction guarantee. That means even if you mismeasure, you pick the wrong color, they'll remake your blinds for free. Free samples, free shipping, and with the new promos they run every month, you'll save even more. Always use the promo code RAMSEY. Blinds.com, a great American company. Today's question comes from Jill in Mississippi.

She says, I'd like've heard it all, Dave. That's an interesting one. GoFundMe, which if you don't know, is a fundraising platform online. You can set up for pretty much any need, and people can donate. You can set your goal, and you get to keep all the money even if you don't hit the goal with GoFundMe. So for an engaged Christian couple asking for donations to get this groom debt-free, I love the heart behind it. I love that he wants to become debt-free. That's about where I stop liking this picture.

You know what makes it feel weird is just the gofundme part that's something they make because listen if they just call if they just said hey uh in lieu of wedding gifts we'd like cash to pay off our debt you wouldn't think that was weird no i mean you would go that's well you it's weird it's different but i mean you wouldn't most people want to get you that wouldn't that wouldn't be a turnoff but for some reason it's a turnoff and this woman thinks it is because she has to throw in that they're christians which has nothing to do with this what is what is what i don't know where that came go fund me he's not in the bible i mean i don't what is that they're an engaged christian couple which i'm reading between the lines this this person doesn't think this is proper. She's trying to say it's not Christian or something.

It has nothing to do with the faith element. Look, instead of wedding gifts, they wanted cash. That doesn't turn me off. But when you're going, go find me, it kind of, because I'm an old geezer, I just immediately go, bleh. But that's just a modern way of getting cash instead of, it's a technological way of getting cash. When you take the wedding part out of it, it's a guy.

Instead of cash, I have to Venmo. Oh, give me a break. But okay. But right. There's no real need here. Now, if they were in turmoil, there was a health issue, it's a little bit different. But just the fact that you're getting married doesn't make me go, well, we should definitely pay a junior's credit cards off. Yeah, but if I mean, when you get married, you get a whole bunch of crap as gifts that you're never going to use.

I'd rather have the cash personally and get the debt paid off i don't think it's tacky but that's me i don't have any couth so i have no man i don't know which side the fork goes on okay so what do i know but coming from a modern millennial we had our normal gift registry but we also had a house down payment fund because we were why is that not as tacky as this? Because it was just a thing. If you wanted to support that instead of buying us a spatula, you could do that. But it wasn't asking me to pay off the debt before the wedding via GoFundMe that had nothing

to do with the wedding. So it feels separate. I don't even know if anyone did it. It was just a fun thing. We decided, you know, this is what we're passionate about, and we're going to put it on there in case family and friends yeah the question actually i'm reading into it does not say this is instead of a wedding gift it just starts it just says make donations now that's different from people who may not even be at the wedding yeah that's

different too no i'm not gonna give somebody but in lieu of a wedding gift if they would rather have cash because they are trying to buy a house like george i would be cool with that i'd rather have a house than a cake knife and that's the problem you go to target and you start scanning things willy-nilly because you think every couple needs the cake stand stop buying the cake stand millennials what are you doing with the cake stand it's well and worse than target home depot oh that's dangerous for the guys give george tools that he doesn't even know what they do. Well, now they have the fancy battery ones, so I get more excited about those. I know, but you still don't know what they do.

They're just for battery. Okay, fair point. Fair point. But, I mean, yeah, you could get a bunch of crap in our culture, and money actually translates. So, I don't know. Jill obviously thinks it's tacky, and I can tell that because she throws the Christian thing in there. So, I'm just saying but um i if it was a in lieu of a wedding gift and it was cash it wouldn't feel as weird

but because we're not sure it's a wedding gift and because go you threw go fund me in there like you're some kind of a charity uh that's the part that makes it because go fund me is almost usually for need well someone lost their house in a fire. There's cancer. Medical bills because they got cancer or something like that, right? And that's usually the stuff GoFundMe. But just getting married and you got some debt. I want to buy a new car.

I've got a GoFundMe. Would you help me? You know, people do that stuff. There's some goopers have it on there for paying off their student loans and stuff. And we see that stuff pop up. But that's all weird. And maybe that's what's weird about it. I don't know.

Well, note to self, Dave's not going to support my GoFundMe. So I won't ask. No, I really won't. I might give you some money, but it'd just be, I'm not running it through there. I'll take, hey, whatever you got, I'll take it. Yeah. Well, I've got a battery operated Sawzall. I'll just tell you that.

All right. Open phones at 888-825-5225. Caleb is with us. Caleb's in Detroit, Michigan.igan hey caleb how are you good how are you better than i deserve how can i help okay um well before i get to my question i just want to say thank you for everything you guys are doing i've been a long time listener um like even in high school i was telling my friends sorry guys can't go out to eat they've said no so uh just appreciate you guys wanted to say thank you before I get started. Thank you. How can we help? So recently, over the last couple of years, I've been working

in the fast food industry and I've really taken a strong interest in entrepreneurial roles and leadership roles as well. So I've been looking to try and get into a franchise opportunity. I've been doing a lot of networking, if you want to call it that. My name's been passed around a couple of times, and I have a couple opportunities now in front of me, and I'm a little stressed about the decision that I need to make between these two. So the first option would be there's a group of investors who have bought three franchises and they need someone to run them. So they've offered me a position as the operator. I would take a salary of a livable wage.

And over the course of five years, I would build a sweat equity in the business of 12 and a half percent. If I wanted to buy in, I could buy in more. And if I do well at it, they'd be willing to let me operate more stores and buy in for more, as well as they do a lot of real estate work that I could get into. So lots of opportunity for growth if I perform well. The other option was a store that basically I would be the franchise partner and operator.

I would be running the day-to-day operations. there would be no equity. I would take half of profits. The store itself, when looking over the P&L, I should be making anywhere between $120,000 and $150,000 a year. So it would be really good income. But there's a no-compete clause, so I wouldn't be able to kind of expand from there. So we're looking at taking a big cut to start off with as far as pay, but an opportunity to grow or a substantial income with not a ton of opportunity to grow. Are there any startup costs with either of these that you have to pay into? The second option would be about a ten thousand

dollar buy-in um the first option i would buy into what you don't own anything it would be more of a franchise uh fee i know but you're you're not going to be an owner in the second option correct yeah so you're not buying in. Right. Now, that's a bad structure. You're buying in, but you don't own anything. Who gets the $10,000? Yeah. His partner, he's putting it towards a franchise fee,

but he doesn't own anything. Yeah. Now, what's the store worth? Or what's it going to be worth when it's up and running, the second option? The second option, they do, if the P&L from before it was closed is accurate to what it would be when it opens up, they were doing about $2 million in gross revenue, making about $200,000 to $250,000 profit. Or sorry, I'm sorry, a little bit more than that. Basically, when cut profits, I would be making between $120,000 and $150,000. $240,000 to $300,000 profit if you're staying in half.

Correct. So in the second deal, if you had 12.5% ownership for your 10,000 that matched the offer on the table for the first deal, it would be a better deal. Okay. Wouldn't it? Mathematically. But you need to limit the non-compete to a territory,

to a range of a distance, and two years max because it's not enforceable legally anyway past that very difficult to stick a non-compete past two years and very difficult in a situation like yours to make it too many miles away if the second guy won't do that i'd go with the first guy because I'm not paying him $10,000 for nothing. I'm not doing that on principle. It doesn't make sense. Hey, thanks for the call. Do you love a good day, Brandt? Want to see the latest Ramsey Show videos going viral? Check out your favorite moments from The Ramsey Show on YouTube. Go watch and subscribe to The Ramsey Show channel on YouTube.