The Ramsey Show - App - Should We Wait for Interest Rates To Come Back Down To Buy a House? (Hour 3)

Episode Date: August 16, 2023

Live from the headquarters of Ramsey Solutions, broadcasting from the pods moving in storage studios, it's the Ramsey Show, where we help people build wealth, do work that they love, and create actual amazing relationships. I'm Dave Ramsey, your host, Ken Coleman, Ramsey Personality, host of The Ken Coleman Show, where he helps people with jobs and careers. He's my co-host today. He also wrote a number one bestseller, From Paycheck to Purpose.

So thanks for hanging out with us. The phone number is 888-825-5225. Chris is in Boston. Hi, Chris. How are you? Hey, Chris. How are you? Hey, Dave. How are you doing? Better than I deserve.

What's up? Yeah, I wanted some advice here. It's been kind of an interesting summer. I was laid off a couple of months ago. I had a really good position. I was a VP. A transformation company came into the company and took it over. And it was by, uh, it was pretty surprising, very bad week packages, two weeks. And then at the end of the month, um, hopped on Cobra. Unfortunately,

two months later after that, my wife was diagnosed with breast cancer. So, um, what I'm trying to do is most important thing is taking care of her. You know, um, I'm 54 years old and, and, um, you know, I have no debt, which is great. Um, my house is paid for, you know, I have a pretty solid IRA and I have, um, some money, um, you know, for the situation, but, you know, you get concerned that, you know, I have really good insurance through the Cobra. I'm paying $2,100 a month. Of course, you know, but you get concerned. I have really good insurance through the COBRA. I'm paying $2,100 a month, of course. You know how COBRA goes. I would prefer to not work right now, but with other bills coming in, I don't know what type of bill is going to come in based on this, because she'll be doing chemo every week for the next three months, and then chemo every three weeks for the next three months

and surgery. Should I continue to look for a job? You know, I think a lot of companies are kind of scared because I was a VP and a GM in my age, but I'm kind of at that stage in my life where it's more project, you know, just looking for some good advice from somebody, you know, and kind of get an understanding what your thoughts are. What do you mean when you say project? Do you mean you feel like you're more of a freelancer, project by project type guy now? Is that what you mean? Well, I could go, I'll be honest with you. I could, I could, you know, manage a large team or I'm to the point, you give me a project, I can just,

you know, from an innovation standpoint of, from a strategic standpoint, even managing a P&L, I can go do that. You know, I don't need to manage, you know, a large team, you know, I don't want to, of course, you know, when you have those conversations because they say, you're overqualified and you say, well, I could do this or that, you know, how companies are, they don't think you want to work. You know, I think in my situation, it might be helpful, you know, for a company for me to come in with my experience. I think so, too. I think, by the way, if you ever run into that... Right now.

Yeah. Let me just say this real quick on the, if you ever run into this, you're overqualified. Let me tell you what that's code for, okay? That's they think that you're not going to stay or they also think that they can't afford you. And I think what you have to say is you have to tell them your situation and go, hey, I'm flexible. Make me an offer. And a lot of times we hear that. People look at someone's resume and they go, why would you be downshifting? It starts to come up with red flags, yellow flags. So that's all about communication. Just want to address that. If you're very clear in the interview process, tell them who you are, what you're about,

how flexible you are. That's a whole different ballgame. Yeah, the whole idea. Look, I've made the big salary. And the other thing is you don't want to play that down because when you have that conversation, I don't know if it causes a red flag too. You know what I'm saying? I don't need to make that, you know, 250 money. That's what you were making last time. Yeah, I was making a 250 plus 35% bonus with the bonus was coming in, you know, so, and that's probably in the range for my last couple of jobs. Well, again, let me just say this. Don't play anything down.

I'm not telling you to play it down. I'm telling you to be open and communicate clearly. And once people have all of their questions answered, it's not sketchy. There's nothing sketchy about you, especially where you're at. So I think the big issue comes down to how much you want to stay at home right now and where you stand on that i think that's driving this next decision yeah yeah well that's i mean it sounds it sounds like you got it's not like you got two solid months of of uh caretaking yeah i feel like at least the three just the every week process, of her going through the chemo.

You know, I've never collected unemployment before. I'm collecting unemployment now, you know, and Boston's pretty good. But, you know, a lot of that unemployment's eaten the cobra, you know, and I have, you know, I have a checking, I have two savings, and then I have a high-yield interest. And how much is in that? My high-yield interest at 4.5, about 180K. Okay, and what do you burn in a month?

Let's see. I'm getting from unemployment 3,400. I'm just thinking I'm probably going over 1,000 of that over the, you know, so I'm going in 1,000 of my savings. But outside, I'm not touching that. If you go in 2, going in a thousand of my savings but outside i'm not touching that if you go in two thousand that's twenty five thousand dollars a year yeah so you got you got you know you got several years in that one account yeah and then i have just a i have another in my other two savings next to my checking. I got 15 and 13. Then I got some of my checking. So I have enough.

Chris, how old did you say you are? 54. How old is your wife? She's 55. How long have you all been married? 31 years. Okay, I'll tell you what I'm doing. I'm not going back to work right now.

Okay. You got $180,000. Just pull $2,000 a month out of there. That's $25,000 in the next year. Spend the next year taking care of190,000. Just pull $2,000 a month out of there. That's $25,000 in the next year. Spend the next year taking care of your wife, sir. Okay. She needs you.

Okay. She needs you. Definitely. And you're still going to be just as employable at the end of it. You've got plenty of money. You've got plenty of margin. You're going to be just fine. $25,000 does not change your life.

Yep, yep, totally. And you spending a year with your wife while she's going through this does change your life. Oh, 100%. You know, I just want, like I said, it's important to hear from good people. Yeah. You know, you guys do such a really good job, and, you know, I try to follow everything you guys have said. And you can keep the COBRA going at least that long. Yeah, I have the cobra for 18 months so it's a good thing it goes through yeah december 2024 yep so you know six months

before that cobra runs out i'm gonna get real serious about landing a job yep yeah but before that the next the next 12 months i'm gonna ride with i'm gonna ride with her next nine months whatever it is let's get her the other side of this. And because this is beatable, it's just going to be a year of hell to beat it. Yeah, that's exactly. And like you said, the most important thing is, you know, to be by her side. And we have God on our side, too, which is a positive thing, you know. Amen.

And Chris, you know, one encouragement. When you get back in this thing, no one's going to worry about that gap. Because you've got an incredible story. You're an absolute hero. You know, I got laid off. And I ran simultaneous with my wife getting breast cancer. And we've been married 31 years. I had plenty of money in savings.

And so I opted to take 10 months and take care of her. If you don't like that gap, I don't want to work here. I want to hire that person. I want to go to battle with Chris. I'm not, I'm not, that doesn't affect you at all. By the way. By people of character. And kudos to you, Chris, and your wife. You were the

poster children for Financial Peace to be able to ride through this storm right now because they've been disciplined. They've got choices. They've got options because they've done a great job with their money. And they've got a great value system. money and um and they got a great value system so yeah i just want to tell you don't worry about career for 10 months at least this is the ramsey show thanks for joining us america dr john deloney has a brand new book coming out called Building a Non-Anxious Life.

If you pre-order it today, you'll get $75 worth of free bonus items, including instant access to his newest talk, Smoke, Fire, and Freedom. It breaks down all the mythology around anxiety, the things we believe, and it'll help you reclaim your life. You're also going to get the e-book and the audio book when it all comes out. The actual pub date is October 3rd. That's when we'll ship them to you. But for 20 bucks, you can get all of this stuff if you buy it early and buy it now. It also helps, John, helps us with the marketing. So thank you for doing that. You are going to actually learn how to identify effective techniques to respond to anxiety and prepare for

anxiety inducing events hello you know it's real there's a real set of tools to do this and it's this is this book is incredible building a non-anxious life pre-order it right now ramsay solutions.com today's question of the day is brought to you by neighborly your hub for home services when something in your home breaks neighborly is the name to remember and with the neighborly done right promise you'll know you get great service from their network of local home service providers so go to neighborly.com today today's question comes from diane in new mexico i'm 61 i am recently divorced. I have no retirement or health insurance, and I want to work in child care.

Should I choose to work for a big retail company instead just to make sure I have retirement and health insurance? You know, this is where I wish this was on the phone and we could go back and forth, dig a little bit more. more, but at 61, if you can't get a decent health insurance plan with the retirement 401k options in child care, meaning working for child care companies that have multiple places around your locale and certainly larger regional or national child care chains, if you will, then I would be looking for a larger company to get some stability coming out of divorce. I hate this for you. Your life has been shaken tremendously. You've got a lot of unknowns, and that's a scary place.

So getting stable right now is the best move financially so that you've got the health insurance benefits. Build that retirement as you can it i i agree um unless she can make a lot more money working for an individual being mary poppins well that's a very good and if she makes enough more to pick up her own retirement and her own health insurance and has a better environment but it would have to be you can't make the same money with no benefits you'd have to say okay yes those benefits are money that's all they are correct yep and so if you don't you know if they're paying minimum wage and you can get 40 an hour working for an individual as a nanny yep uh and you pick up your own health insurance and your come out ahead. That's exactly right. So you've got to compare the – but if it's apples to apples, if it's the same hourly rate, then you would take the one for sure

with the corporate retail. Yes, yes. But to your point, and again, if you are – look, let's where she's at, New Mexico. She lives in an area where there's wealthy people, and most areas have a wealthy contingency to them. They're looking for someone they can trust, a grandmother, very dependable, comes in the home, does laundry, helps with meal preparation, not just child care. She can offer that.

Now all of a sudden she's charging a premium because you're saving people a lot of time, meal planning, laundry. And let me just tell you, she's not a 22-year-old doing this that's going to get married, have a baby, and you've got to go get another one. That's correct. You know, and so. A lot of value there. She actually is a very appealing prospect for that as far as I'm concerned. Very much so.

That's a very good point. But you'd have to make a lot more to be able to buy your own stuff. What do you think? Do you have an idea what a self-insurance would cost a 61 year old well i mean i you know i bet you you could make double doing that what you could make at a retail i'm i might my i don't know you probably know a lot more you do know a lot more about it than i do but in my uh vision of working at a retail daycare without question they're not going to pay much you're correct and she may make and they and

she could make like lawyer money working for a family without question certainly a wealthy family has multiple kids looking for a live-in or or somebody there that's just there four days a week and and but you're right because i mean what a 61 year old brings to the table for that family is excellent oh man peace of mind now stacy and i did this several years ago when stacy was working remember all three of our kids were in middle school or younger and we hired a lady who was about this age she came we called her miss pam and miss pam came in she was there when the kids got home from school made sure they did their homework she started laundry light cleaning duties nothing major yeah

yeah yeah and we our peace of mind was off the charts well and let me just tell you kids didn't mess with miss pam no because they knew miss pam was going to tell us everything and they found that out didn't play no no she's not going to be intimidated she's very smart you're bringing in mary poppins with the parrot head umbrella i'm just saying yeah i love that i'm thinking that i i'm thinking this is a premium miss diane um and you know but assuming you don't get a premium assuming you get the same pricing then you would obviously take the one with the other stuff but you can set up your own ira and go buy you some health insurance from blue cross blue shield or somebody

and be in fine shape as a self-employed independent nanny. You know, you can just decide you is, and there you is. That's a beauty. This is America. I love it. Connor's in Kalamazoo. Hey, Connor, how are you? Doing well.

How are you, Dave? Better than I deserve. What's up? Well, I guess, so my wife and I were 26 years old. We just had a baby in April, and I graduated from pharmacy school in May. I'm contemplating two job offers right now. One is kind of my dream job at a hospital. And I guess with that job, it pays less, and it's further away from family. How much less? It's four hours away from my family,

and then the other job at the university is about one hour away. But how much less money? I don't even want to consider this, to be honest with you, because it's four hours away. There is no way. It's nuts. You don't have a family when you're working four hours away. Yeah.

You're not in the military. That's a nightmare, not a dream, my friend. Well, so the reason I apply so far away. reason i mean you move if you take that job well so i guess my family the reason i can't apply near them is they live near a big uh who's my family your mother these are my friends family, my immediate family. Oh, no. I thought you were talking about your wife. You can move away from them. You can move away from them. Oh, I'm sorry. Are you married?

Yes, I'm married. You can't move away from her. No, no, no. Definitely not. That's what we thought. So pack her up and move to the hospital. That's fine. Okay, I got it.

How much less money is the hospital job going to pay you? That's offer one for this discussion. Then offer two. How much? What's the hospital job going to pay you? That's offer one for this discussion, then offer two. What's the difference in salary? So the salary is only $6,000 less. So it's $109,000 at the hospital, and the university is $115,000. But the benefits at the university are way better. They have a 10% 401k match. You have all your weekends and holidays off. Okay, pause. But you said that the hospital job is your dream job.

So you're going to turn down the dream job for $6,000 in benefits when I'm guessing there's a ladder at the dream job, meaning you have an opportunity to grow. Is that true? That's true, but the downside is, you know, going through school, I always thought that, you know, hospital pharmacy was for me. But then once I had my baby, you know, money talks a lot, and my priorities changed. So I'm wondering if it would be better for me to take the university job for the money at this point. It's not that much money.

It's not that big of a deal. What makes the hospital pharmacy the dream versus normal pharmacy? And I'm asking this completely clueless because I don't understand that. What would make it a dream versus just a good job? So for me, I guess it's the patient population that I would be working with. You know, in school, I always liked working with the people who are a lot sicker, and I just found that more rewarding to me to be able to help those in need. I get that. Okay, so if you take the hospital job, you would move your family to the hospital, right?

Correct. Okay. Yes. And it's basically the same money. Yeah. Go do the same money and do the one you want to do and move your family. Yeah, yeah. And, you know, make sure you've got some upward trajectory in whatever you take,

that you're not stuck, you're not, you know. But you ought to be able to do a lot of stuff with a pharmacy degree, dude. This is The Ramsey Show. Thanks for joining us, America. Ken Coleman, Ramsey personality, is my co-host today. Dylan is with us in Salt Lake City. Hi, Dylan. How are you?

Good. How are you, Dave? Thank you for taking my call. My pleasure. What's up? So my wife and I have been married for three years now. We've been going to school and going to college. She graduated this past May with an engineering degree,

and I graduate this upcoming May with an engineering degree. We're 100% debt-free. We've been through college with no student loans. And we've been able to save about $60,000 that we've earmarked for a home. And we're curious as to whether or not now is the time to buy with interest rates so high and with just everything going on in the market, uncertainty. Yeah, so what's your advice for me or other questions you have you're gonna you know you're gonna stay in that area yes we are okay so you get um

i mean you get out of school and you're gonna take a job and that's not going to change the real estate decision yes okay all right i mean i can believe that i just wanted to double check and you have zero debt of any kind of 60 grand for a down payment zero debt of any kind 60 grand for a down payment about 30 000 in retirement accounts and two years funded hsa account good for you. Okay. Well done. Well done. Okay. Uh, I would buy now, uh, regardless of interest rates. Uh, here's what I don't know. Uh, 12 to 24 months from now, I don't know what interest rates will be. I do know house prices will have gone up seven to eight percent a year during those that time okay house prices are continuing to go up in print and and uh regardless of interest rates because there continues to be a shortage of housing versus the number of buyers looking now so the in other words

the strategy is we can predict that the cost is going to go up so we might as well get in now we don't know if rates are going to go down or not so waiting on them to come down they might not yeah there's no guarantee they're going to come down yeah um and uh they they sat at six for a decade before and then in 2008 they were artificially driven down because of the housing crisis. And the government just straight up manipulated the market and drove the rates all the way down to about 1% there for a minute, and then up to two, then up to three, and then back down to two and a half, and then up to three. And it sat there for a while and then jumped up just recently you know to six and seven again and everybody's freaking out like that's a high interest rate but over the scope of history it's not really a high

interest rate so what i would say is this we know house prices are going to go up so let's buy if interest rates go down which we don't know you can always refinance you're not stuck but you are stuck with house prices yep Yep. So buy now. Okay. Another question for you is, in that case, say we buy in the next six months, how much house can we afford? Our income last year was about $80K. We have a baby on the way due early next year, so my wife won't be working as much.

But when the baby comes in, I'll be working full-time. So that's kind of the projected income is about $80,000 a year. Yeah. A fourth of your take-home pay on a 15-year fixed-rate mortgage is our suggestion. And that's going to mean you're probably going to buy less house than you thought you were going to buy before this call. But that's okay. It's your first house. You're in your early 20s.

You've got time. You're both both engineers you're both working someday you can easily move up in house later so again i would get into the game uh the only thing that's now making me hesitate is i don't know if i'm going to move a pregnant woman in her third trimester that sounds like a hell on earth to me i don't think i want to do that yeah but um but you know you might i don't know uh the further along in the pregnancy she is the less likely i am to buy until after the baby so just because it's you know it's hard on her i mean really she's got y'all got enough on your play that deal on the hanging curtains for god's sakes so um yeah it's okay to not buy there's no sin that says you have to buy immediately but you know we were discussing interest rates and prices a minute ago now we're talking about

your life so i might wait till after the baby comes my way to you uh just just for just for comfort you know uh there's nothing that says you have to do it now and you have plenty of time and you'll both have great careers you'll both have great careers. You'll both make great incomes. You're going to be debt-free millionaires in your 30s, no matter which of these you do, whether you buy before or after the baby. But a 15-year fixed where the fourth of your take-home pay is going into the payment and you'll be right on track, get that house paid off or move up later on when everybody's back working and all that kind of stuff and the other thing too is i think he's short changing himself as to what their income could be i know

his wife's going to back off a little bit he'll be coming out into the market i think it's very possible if they wait a year that they might find that their income is is higher yeah that's very possible it might put you into a different house. If interest rates stay the same and house prices went up 7% during that year, which is probably what's going to happen, you know, the only thing that's really going to push interest rates down that I can see today is the fact that we're going into a presidential election year. And generally, the sitting party will try to drive rates down to say, look what I did. That's correct.

And they, you know, and we all know that, well, why weren't you doing that two years ago then? You know, I mean, it's that there's always that, but, um, I don't, I wouldn't hold your breath because, uh, Jerome Powell's gone on record as saying, and when we've got this, uh, inflation rate where it is, and it's still a little higher than they expected when, when, when July report and so unemployment's still very very low i would expect him to raise it a couple more times they're just screwing with it just to prove that it's not they're uh it's a whole other discussion they're trying to trying to use a hammer on a phillips head screwdriver but they're just because they don't know what the heck they're doing but the it's a disaster but anyway all of that to say i don't know that you're going to see interest rates come down so you just decide in the scope

of your life with a baby on the way when we're going to buy ted is in saint paul minnesota hi ted how are you great how are you guys doing better than we deserve what's up yeah i got a career question for you guys uh so hope i picked the right crowd today, but I am in a role that I really like. I'm a marketing analyst and I make good money. My wife and I are in a good financial position. I feel like I can continue to grow. I just want to know and bounce some ideas off both of y'all of how I can best grow in my career.

So if you're good with it, I have the get clear assessment. I can read you my purpose statement. So if you're good with it, I have the Get Clear Assessment. I can read you my purpose statement if that's good with you guys. Sure. Yeah. All right. So I was created to use my talents of connection, compassion, imagination to perform my passions of promoting, advocating, protecting

to accomplish my mission of service by producing assistance and protection. And so for me, that's just, you know, my Christian faith. I really want to, you know, serve others and impact lives to, you know, help people live their best lives too. And so I feel like I get to do that a little bit right now, and I want to continue to grow in doing that as well in my career. So do you have a specific idea? Well, let me say this. Your assessment results scream people. There's really four types of work in the world. People work, ideal work, process work, and then objects or things, okay? And your results scream people. It screams people. And so the question becomes, for you to be very fulfilled, you're

going to want to find work that allows you to use the people skills because you have a lot of people talents here. And then you very much love working with people and your motivational driver, that missional result of service means I want to see the results of my work come through in the vein of serving people. So you got to figure out the people you want to help, the problem that they've got, and the solution to that problem. That's high level. And so that's what you're looking for. But I would not be in any kind of rush to leave a job you like, because I want you to figure out what is that path? What's the steps along that path to get to that work? But I would guess you have a good idea what it is.

And so one of the things I want to do is I'd love, we're running out of time. Austin, I'd love to get him on the show, on the Ken Coleman show, and let me work through that with him in great detail as to what his ideas are. Because Dave, I know this, when somebody calls with that type of question, there's something in them that's burning and itching and they're looking for confidence to step forward in that direction. Yeah. He thinks he knows, but he's not sure. Yeah. This is The Ramsey Show. Our scripture of the day, Proverbs 16, 3, commit to the Lord whatever you do, and he will establish your plans. Stephen Covey said, live out 16.3, commit to the Lord whatever you do, and he will establish your plans.

Stephen Covey said, live out of your imagination, not your history. Ooh, that one's good. Sharon's in Greenville, South Carolina. Hi, Sharon. Welcome to the Ramsey Show. Hi, thank you. What's up? I am 75 years old, a recent widow, and we have some lakefront land for sale in South Carolina. And I was recently offered full price, $600,000 in physical gold.

And I am having a heck of a time finding any good advice as to the advantages and disadvantages of accepting physical gold in payment for the land. And I've listened to you for years, and it occurred to me, I need to call Dave and see what he would recommend. Okay, number one, if this is real, you don't know. You laid eyes on a big, giant chest full of gold bullion that's what i got in my head no no i i know i'm sorry i can clarify i know the person who is offering the deal very well and he is a wealthy person who owns a large company that does work in four southeastern companies so he's legit uh you know not a difficult person to check out.

Then why doesn't he just pay you? What do you mean, why doesn't he just pay you? Why doesn't he just close the land? I mean, sell the gold and pay you in cash. Well, I would ask him that question. That's a good question to ask. He told me he has been buying gold. He's a great believer in the gold standard for the U.S.,

and since he started his company at 18, and he's 80 now, he has accumulated all this physical gold. So sell some of it, since it's so wonderful, and give me my money. Give me my money. Okay. Listen, here's the thing. Let's turn it back. Let's be a little bit nicer.

Okay, here's how I would handle it if I were you. Okay. Okay. I'm going to play the, I always play the, you know, for instance, in business, I'll go, oh, we're just a small business. We're not real sophisticated. You got to help us out. Okay.

Okay. So in your case, it would sound like this. I'm a 75 year old widow i don't even know how to begin thinking about doing this you're the guy that has all the money and you're mr sophisticated so i need you to help me out i i don't i can't do this because i don't know how so what what i need you to do is just sell enough of it and give me my money because that i can do because i don't know what to do with it man and you're the you're the big gold guy you're you're you have all the connections you know how to turn it into

money i don't know how to turn it into money so you got to help me out here uh okay well one thing that he's told me and i also confirmed this was that there are no tax consequences there's not doing what yeah there's not so that's awfully attractive when you're looking at a $600,000 table. No, there's no tax consequences to it being gold. There is tax consequences to you selling the land. Yes. But whether you take cash or take gold doesn't matter. Right.

There's no tax. Because it's gold, it doesn't make it have tax consequences. Okay. But there's no way I'm doing this. There's no way you should do this. Knowing how much that you work in real estate, I thought maybe you'd run across that before, or you just wouldn't recommend it for anyone.

I can probably get the gold liquidated, but I wouldn't take it. Right. Because I don't need to fool with it they need to fool with it that's their it's their the gold the gold is their issue not my issue i don't i'm not getting in the gold business and i don't want to be in the gold business for 10 seconds just liquidate the crap and put it in my account put the money in my account we'll have a closing okay great it's really it's really there's no advantage to you and there's huge potential disadvantages the disadvantages is the gold goes

down three days after you get a hold of it and you know or worse than that this guy is not who you think he is and it's a fraud the fact that he's presenting this is very weird and that alone raises a flag for me but you're you're vouching for the guy i was getting ready to give you a 25 chance this is fraud but you've you've narrowed that down to a five percent chance now because you're vouching for him but um but i'm i'm still not doing it there's no way somebody comes up offering me weird crap you know why you know why stuff seems weird? Because it's weird. You know?

The reason this feels strange is because it's strange. You know? And sometimes you just kind of got to go with that. Valerie is in Detroit. Hey, Valerie, welcome to the Ramsey Show. Hi, guys. Thanks. So I am 23 years old. I just got my master's degree and moved home.

I took out $11,000 in student loans in hopes that they would be forgiven. Of course, they're not. My dad says he'll pay them from our education savings account, but he only wants to pay the minimum payment since they're at a 2.75% interest, and my younger brother still has to go to college, so the money will basically keep growing in those accounts. How old are you? I'm 23. Okay, the educational savings account is no longer your father's. It's now yours.

Right. He's no longer the custodian. He doesn't get to choose. You choose. Take the money out and pay it off. Okay, you think? I'm positive. Even though, like, I can transfer that money to my younger brother.

You can't transfer the money to your younger brother? You have a debt. What did you get your master's in? Bio statistics. Have you gotten a new job? Yes. Big girl master's job? Yes.

I'm living at home and I'm making $80,000. Why are you living at home? Because I got the job right before I graduated, so I don't know. I'm not sure where I want to live yet. You're not what? She's not sure where she wants to live. But you're sure you want to move out soon, yes? But you have the job.

Probably within the next six months to a year, yeah. I'm sorry, wait a minute. You know where you work, right? Yes. So why do you have to wait to move out because you know where you work? I don't have any friends around or roommates and I don't want to live alone.

Okay. Yeah. I would solve that. It's time for you to be out on your own. It's time for you to pay off a student loan. Okay? Okay. As fast as you possibly can.

If your dad's not going to give you access to this, your parents are exercising an awful lot of control over you for a 21-year-old that makes $80,000 a year and should be standing on her own. Okay. You're, you're, you know, it's time for you to move out and be adulting as they say. And, uh, so yeah, I would get my own place and I would pay off the student loan and I would do all of that in the next 90 days. If I woke up in your shoes, if you were my daughter, that's what I would tell you to do. I love you and I would love to have you stay here, but it's not good for you.

So you get to move out. And so I'm kicking you out because you get to fly and be free. Eagles that stay in the nest too long are known as turkeys. So you're not a turkey at all, Valerie. You're not a bad person. You're a wonderful, sweet, kind young lady. But I want you to have some courage and throw those shoulders back and walk into the wind, kiddo. And fly, eagle. Fly. You know, she's very sweet. Everybody could hear how sweet she is.

However, one thing I want to mention, Valerie, is that if you go along with this plan, this money that was supposed to be used for your education, and all of a sudden I'm just going to donate it to my brother, I would be concerned about resentment that could creep in and grow. And I just don't think that's healthy. And so this is another boundary issue that Dave's brought up with you leaving. I think there needs to be a boundary on this. If that money was dedicated to your education, use it. Yeah. Yeah. And your dad should just release it. It's $11,000 and you should pay it off. It's really by Friday is what you should do. Um, I don't think you're going to do that because I don't think you're going to stand up to your dad. But I wish you would.

I wish you would. I think it would be good for him, and I think it would be good for you. And the hardest folks, to her dad, the hardest part of parenting is when you no longer get to tell them what to do. And now you can't use your dad voice anymore. You have to use the older uncle persuasive voice because it's the only one you got. They took your other one away when they left. And sorry, Dad, but you can't stop it from happening.

Time marches on. It's time for Valerie to go. That puts us out of the Ramsey Show and 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. Dave here. You can find all of our shows with the Ramsey Network app on your smartphone.

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