The Ramsey Show - App - Shouldn’t I Keep Investing While Paying Off Debt? (Hour 2)

Episode Date: September 28, 2022

Ken Coleman & George Kamel discuss: How much life insurance you need, Saving vs. paying off the house, Upgrading a car, How to budget extra money, Investing while paying off debt. What to do with extra income, Starting a business. 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 Learn more about your ad choices. https://www.megaphone.fm/adchoices Ramsey Solutions Privacy Policy

Девочка-пай Live from the headquarters of Ramsey Solutions, broadcasting from the Pods Moving and Storage Studios, this is The Ramsey Show. It's where America hangs out to have a conversation about your life, your money, your work, your relationships. I'm Ken Coleman. George Campbell joins me this hour. We are Ramsey Personalities, and we are your hosts, your guides this hour. It is a free phone call to jump in. 888-825-5225. 888-825-5225. Tucson,

Arizona is where Tiffany joins us. Tiffany, how can we help? Hello. Yeah, I had a question in regards to life insurance. So my husband gets 10 times his salary through his job, but we recently had a family member who got cancer and ended up having to quit their job. And with that, you lose your life insurance. So my question is, when you have employee-sponsored life insurance, should you have additional on the side? And if so, how many times your income should you get? I would also like to

add, you do have a special needs son. So we have to keep that in mind when we're looking into future planning. Well, it's a great question, Tiffany. And clearly that family scare has led you in the right direction. And you're exactly right. I want you to have term life insurance outside of your employer for that exact reason. We don't know the future of his career if he leaves one day. And that puts your family in a lurch because guess what happens if he leaves eight years from now? Well, now his term life insurance is much more expensive to buy

eight years from now than it is today. Yeah. And so I would get 10 to 12 times his income in a term life insurance policy outside of your employer, regardless of how much he has with his employer. Look at that as icing on the cake. That's the gravy. Okay.

All right. And if I could just say, I make my 13-year-old listen to this with me all day, so I just want to say hi to Natalie. I did call in. Oh, that's sweet. Oh, that's awesome. What's the name again? Natalie.

Natalie. Shout out to Natalie. Shout out to Natalie, 13-year-old. We need more 13-year-olds listening. Yeah, that's awesome. Good. That's how you turn them into adults right there. Hey, Natalie, your mom is a rock star.

Don't roll your eyes at her for at least a month, all right? It's one of those you go, my mom made me listen to this show growing up, and now I'm a millionaire with a paid-for house at 30 years old. Gosh, so angry at you, Mom. It's so true. It's a good problem to have. Oh, man, I'm trying to think of programs or things that I had to listen to. It's a different world, you know what I mean mean you're telling me you don't go home and force

your kids to listen to three hours of you on the show today oh my gosh are you kidding me the kids already think i'm uncool and irrelevant well do i need to give them more evidence gosh you know i think you're so cool ken thank you how do they not see it i'll help them get there george one of these days you're gonna have some little camelsels, and then they're going to be medium-sized camels, and they're going to no longer think you're cool, no matter what you do. I heard Will Ferrell's family doesn't think he's funny, and that gave me great peace. I heard that interview.

I think that was with, I forget what podcast that was on, maybe the armchair. With Dax Shepard. Dax Shepard. He did say that. He says, my kids don't think I'm funny. And I almost pulled the car over on that one. I was like, how can you not think that Will Ferrell's funny?

But the positive of this is no matter what, we're very blessed to get to do things very publicly. People say nice things about us. But when you go home. Humility is there waiting for you at home. Yeah, I've had people ask on podcasts before, like, how do you stay grounded? I have three teenagers. Nothing will ground a person. Like dealing with teenage problems, George. They are like human gravity to you, Kevin.

They just keep you on this earth. I'll tell you what they are. They're human sinking funds. Oh, that's true. Recent data came out. You know how much it costs to raise a kid now? Have you seen this number? I saw this.

Was it? $300,000 is what they're estimating. To 17, 18 years old to 18 years of age it's going to cost you 300 grand per kid if that's not a reason to do these baby steps i don't know what is i that's why i bring it up that's per kid per kid three kids that's a million bucks do you need to step out right now and call whitney i'm having some heart palpitations second thoughts i thought how much is the frenchdog? French bulldogs are probably close to that. They are born broken and very needy.

Goodness gracious. Born broken. Born broken. You are going to get hate mail for that because there are a bunch of French bulldog loving clubs out there that are going to come at you hot on that comment. You know what happens when you're purebred? No. You know what that means?

What? You kept it in the family and things start to go haywire in the gene pool there. So they're born with hip dysplasia. They've got spine issues. Really? Both of your dogs? The flat faces, the breathing issues. Well, everybody loves the faces.

Part of it is curious. Are both of your dogs broken, or are they okay? They're fine. They got a clean bill of health? They have their issues, but don't we all? Wow. It's fine. All right.

Thanks for checking in on us, Ken. All right. Hey, we're all wow it's fine all right we're doing thanks for checking in all right hey we're taking your phone calls all right money calls maybe it's about paying for your dog's bills right we need more calls about dog ownership we need more calls about dogs and and animals and things of that nature uh let's get to the phones Huntsville Alabama is where Tyler is Tyler how can we help hey help? Hey, how's it going, guys? Well, we're having a blast here, Tyler. What's up? That's awesome. So me and my wife are sort of wondering, we finished our baby steps, did Financial Peace University, but I guess we're on our last step, and that's what do we do with our mortgage? So we just had our first kid about two months ago oh congrats thank you thank you he's a fine young man

um so we're we're trying to we know we um we know we're going to move in the next three to five years our school zone isn't the best um but we live in a great neighborhood and everything uh we're just kind of wondering do we snowball our mortgage or do we just continue putting in savings? How much money do you have in the bank? So we have about $40,000 in savings. So that's plenty. That's probably beyond your six-month emergency fund. Oh, yeah. I hope so. Well, beyond the six months, I would use any of the extra money to throw at the mortgage and pay this thing down.

What's left on the mortgage? $250,000. Okay. And what's your income? $170,000 combined, give or take. Love it. So the question is, how many years would it take making $170,000 to pay off $250,000? So we averaged it out. We're putting about $3,000 a month in savings. What are you saving for? That's a great question. I ask her that all the time. So mama's deciding where the money's going. Is this a security gland flare up? Is that what's happening? She's going, we need more money. We need more money. What if something happens? Yeah. Well, when she got started with the baby steps, it kind of just spiraled out of control. We became real conservative with our money. We

started doing everything and that's just the way life became. You know, we got everything we wanted things. I'd love a new truck, but you know, we vowed never to go back in debt over a vehicle again. Well, you can pay cash for a truck. Yeah, and that may come. So with the newborn, I've got a 4Runner, and it's great. It's newer. It won't have no issues and may hopefully last forever. But she's got a small Jeep, and it is not a kid-friendly vehicle. Well, let's upgrade mama's vehicle. Yeah, that's what we're looking at. There we go. So that's part of it. You know, we balance these things out.

We don't have to put every dollar onto the mortgage. We have to look at what our upcoming goals are in life. And part of that is upgrading the cars. So let's do that and start attacking the mortgage. And how cool would it be three to five years from now when you move, you have a paid for house. And you roll all of that equity into the next one or maybe even pay cash. Start dreaming about that with your wife. And I think that will give her a little bit of peace about the future. And you never know what's going to happen three to five years from now. So it's always a good strategy to keep paying

on the house after you take care of these vehicle needs and stuff like that. So congratulations, Tyler. He seemed remarkably rested for a man with a two-month-old. I was impressed. But as he said, he has a fine young man. Fine young man. Congratulations on that. Hey, don't move. More Ramsey Show right around the corner. welcome back to the ramsey show where we talk about your life, your money, your work, your relationships. He's George Campbell. I'm Ken Coleman. We're together for you this hour. The phone number is 888-825-5225. George, we've met thousands of people in our time here.

We have. And it's a pleasure to work with people. And we've talked to thousands of people on air. And it's always amazing when people have great accomplishments, like losing a bunch of weight or finding that dream job or overcoming mental health issues and moving forward. And that's why we love our Smart Conference, where we have a full day where we look at all of those areas of life

and bring people transformational content. The next Smart Conference, very exciting. It's going to be here before we know it, George. Dallas, Texas, Saturday, October 22. Less than a month away. Wow. Are you wearing a cowboy outfit or anything? I can't give any spoilers, but...

There's going to be some fun things besides all of the great content. It's our most entertaining event we do on top of the most breadth of content. Yeah, Ramsey personalities, Rachel Cruz, Dr. John Deloney, George Camel, Dave Ramsey, myself, all on the stage to give you a smart plan for your money, your career, your personal growth, your relationships. Join us live in person October 22. Get your tickets before they sell out. RamseySolutions.com slash events.

RamseySolutions.com slash events to reserve your seats today. Are we allowed to talk about one of the things that we're going to be doing as a group, all of us together? Oh, we can tease it. I don't even know if it's official, but I like teasing it. Speak it into existence. What are they going to do? I don't know.

Don't do that again, Ken? The team involved is not listening right now, so we're safe. Well, we're going to do? I don't know. Don't do that again, Ken? The team involved is not listening right now. They're not listening. So we're safe. Well, we're going to be having a moment, a recreation of a very well-known game show. Is that enough? That's a good way to put it. I'll leave it at that.

One of the most popular, long-standing game shows. We're going to bring it live, all the Ramsey personalities together on the stage at Smart Conference. How about that for a setup? I cannot wait. The guys in the booth don't even care. They're not listening at all. James could care less. That wasn't even close to controversial.

He's muted us by now. Yeah, absolutely. He's running a best of right now. We don't even know what's happening. All right, back to the phones we go. Seattle, Washington is where Sydney joins us. Sydney, how can we help? Hi, guys.

Thank you so much for taking my call. I'm a huge fan of you two, Root Beer Float. There it is. There it is. Thank you, Sydney. Sydney, may I ask, is George the vanilla ice cream or the root beer? Or am I the Root Beer Float? How do you break that down?

I say you are the vanilla ice cream. There we go. That's what I called it. Ken, you're so smooth. We won't spend any more time on it, but she has spoken. The fans have spoken, and thus we go forward. Sydney, thank you for that. How can we help you, actually?

How can we help today? Okay. So just given the background, I'll give you guys in a minute, I would like to know if I should sell my car and downgrade and add some of that money towards upgrading my husband's car. Interesting. So we just finished Baby Step number three as of last month. Congrats. Thank you.

So everything is all paid for. So we're on Baby Steps 456 now. And our net income is about $240,000 a year. Wonderful. Yeah. So, but given that, and now, you know, I want to be intentional with our money. So saving up for vacations and things like that in our baby steps four, five, six. But now I don't know if I should sell my car and downgrade my car and get him a better car, because he's had his car since 2011. It's running fine, but it's been having a lot of problems, so we have to fix it a few times now, and it's time for an upgrade. Now, Sydney, hit me straight here.

What's your car worth? And it's paid for, you said. My car, if I sell it now, when I look it up in Kellogg Books, it's about $45,000. Well, for your income, it doesn't sound like this is an issue. You have $20,000 coming in of take-home pay every month. Right. So I would rather you take control of that. Could I just save up?

Yes. It's not worth selling your car. Your car is not the issue. Okay. Yeah, it's just a patient's issue. Yeah, how much of the $20,000 can we now set aside for his upgrade car? $5,000, $10,000 a month? $15,000 a month?

Mm-hmm. Right. Well, which one? Like, what is the amount that you're thinking that you guys need to spend to upgrade his car? If we sell his car, we'll probably get like $3,000. So I want to maybe like $30,000 car. Great. Let's have that be the goal.

How quickly can we save up $30,000, making $20,000 a month? The answer is a couple months. Right? But I want to save up vacations and things now, too, that we're out of debt. Well, you can do that with a sinking fund in your budget. Are you going on vacation next month or six months from now? No, probably more than that. Okay.

Lumber than that. So let's say we want $10,000 six months from now. We divide 10 by 6, and that gives us our number we need to save each month. And by the way, once you save up and buy this car, you've now freed up all that money you were saving to go towards other goals. That's true. So this is a non-issue with your income. If you were making $2,000 a month versus $20,000, it would be a different conversation.

You guys have an amazing shovel that all of your goals will happen very quickly because of that. Okay. So don't sell your car. We're so used to being in a tight budget. It's like, oh, what do we do now? We move from intense to intentional once you get to baby step four. And that's what you guys are doing. So still follow a budget to a T every month, allocate those dollars,

and the goals will change each month depending on what's happening. But those sinking funds should give you peace that you're not going to wake up and go, we don't have money for a vacation all of a sudden. Yeah, you got this, Sydney. And congratulations on the discipline, the diligence to get where you are. Now it's just a slight change, not in the discipline, the diligence to get where you are. Now it's just a slight change, not in the discipline, but in the outlook. And you guys can do this.

So keep your nice car. My goodness. But what a nice lady, willing to downgrade her car for the hubs. Wow. I don't know. Would Stacy do that? I wouldn't want her to. Yeah, agreed.

I wouldn't want her to. I think the wives should always drive the nicer car. That's just a personal stance I have. That would be true in our marriage. It was. Now we're in a situation where we both have nice cars. But it was always like she was the one, and still is, she's the key Uber driver of the Coleman household. Oh, yeah. So they've got friends.

But as we've said before on this show, when you have kids, and I want to park here for a second because we get this call on a regular basis and people feel this pressure to have a super nice, super new, fancy car when kids start arriving. Oh, yeah. Under the guise of safety and reliability. Right. Which, you know, a 10-year-old car there's you know besides the 47 airbags i'm sure they could prove and point to but but the point i always try to make with people is once those kids are toddlers and they start getting snacks like goldfish and mott's applesauce and all that stuff that's everywhere you're super nice fancy new car everything's just sticky and is

nothing more than a dumpster on wheels okay this is i'm trying to scare kids uh scare people out of kids but you're scaring me right now as an ocd you know clean freak are you aware of how much a kid can destroy a car in a two-hour road trip with the with the little uh oh the fruit uh the fruit chews uh on a summer day they drop them in the car you go out i'm, they drop them in the car. I'm going to have plastic wrap all over the car just so I can just grab it all and throw it away after the road trip. Right. So my point is this. If I'm working through the baby steps, I'm going to get the most affordable, budget-conscious car possible.

It gets you from A to B. It gets us from A to B because the kids are going to destroy the interior of the car anyway. But don't go into debt on a depreciating asset under the guise of reliability. An 04 Corolla is about as reliable as it gets. It is. The truth is they just want to look good while they're at it. Yeah. Didn't you drive a Corolla?

I had a Civic, an 09 Civic up until a few months ago. I love that car. What is the brand maker of the Corolla? Toyota. There it is, George. You've come a long way. I'm learning. Folks, six months ago, he would have said...

Toyota. And the team made fun of me because of my speech impediment, I guess, is what you want to call it. Oh, stop it. That's... Hey. You do not... Don't you do that. You don't have an impediment.

You just didn't know how to say it. My parents aren't from this country, Ken. Okay? Oh, boy. I'm pulling that card now. Hey, I'm out. I't you do that. You don't have an impediment. You just didn't know how to say it. My parents aren't from this country, Ken. Okay? Oh, boy. I'm pulling that card now. Hey, I'm out. I'm backing away slowly. Caramel or caramel?

Caramel. Close enough. Yeah. There it is. Hey, those searing topics plus your calls coming up. Don't move. This is the Ramsey Show. Welcome back, America. You've joined the conversation here on the Ramsey Show.

I'm Ken Coleman, joined by my colleague, George Campbell. We're here together for you. 888-825-5225. 888-825-5225. Let's get back to the phones. Bonnie joins us now in Huntington Beach, California. Bonnie, how can we help? Hey, guys.

Thank you for taking my call. You bet. I just have a quick question. Hopefully, I've been using the monthly budget app and I just want to make sure I'm using this correctly. I've been using it for about three months. Are you talking about every dollar, our budgeting app? Yeah. Okay, cool. You got it. Just want to make sure. And yeah, no problem. And I got the, I'm able to allocate every dollar for each month that I'm expecting to receive, as well as allocate to each bill.

However, my question is, what about the money that is there from the prior month? There shouldn't be any extra money that's not being allocated, correct? Yes, you want it to be equal zero. Income minus expenses equals zero. So you're saying you are under budget in certain categories and that creates a surplus? Yes, so that's where I'm misunderstanding is I know what I'm expecting every month

and I know what bills are going to be allocated for every dollar and then I budget for every category, but there's other money around that I'm not sure. So what categories do you have surplus in? For example, are you budgeting $200 for groceries, but you're spending $150 by the end of the month and that leaves a $50 surplus? No, actually. So I do that, but it seems like I need to make sure, because I'm only budgeting what I'm expecting as far as income goes. So are you getting more income than you think? There could be just residual money that's been sitting there from prior months. That's what I'm thinking. Okay. Well, you can allocate that to your next goal. So put a line item in your budget and throw that at your debt. Or where are you at

in the baby steps? Are you paying off debt? Yes, I'm in baby step two. Great. Well, it's a good problem to have to have too much money versus not enough at the end of the month. So I would take that chunk of money and throw it at the debt. And you can put that in your budget line item as debt payoff. Yeah, I'm just trying to see maybe I should be able to get a full total of what I have in my account and then budget every dollar because I'm just doing what I'm expecting as far as income comes in. Well, do it based on what actually ends up in your bank account. So if you budget $1,000 for your check and it's $1,020, well, you can go in and adjust your line item for that piece of income. Got it. So it's that simple. Yeah. But you're doing great. I love that you're so hyper-focused and

got this budget dialed in that tells me that you are gazelle intense and that this debt's going to be paid off. So way to go. Really awesome. She is on her way. And it takes about three months to get that budget dialed in. So don't give up if you do it for a month and you go, oh, I messed it up. Guess I'm not meant for budgeting. Yeah, and I like what you said. You've got to remember that the budget is a, it's not an immovable object. It's a flexible, you know, so if something changes, we have to change the budget.

Exactly. All with the eye of making sure that we aren't spending more than is coming in. So great stuff, Bonnie. Appreciate the call. Abby's up next in Phoenix, Arizona. Abby, how can we help? Hi. So my boyfriend and I went to see you guys when you guys came back in, like, September 12th.

Oh, great. Building wealth. Fun times. Thanks for coming. It was definitely a good time. And so he is the financial guru between the two of us. And so we're talking, he doesn't have any debt. So we're trying to get mine under control.

And the subject of the 401k came up. And I told him I was contributing 10%. And so he told me, like, until my debt is under control, we need to stop with contributing to my 401k. He said, you know, it's fine for now, 0%, you know, until we get it done. And so I changed it. And then I got a second opinion from my brother and he said, he's like, well, they match 4%.

Why don't you just continue to put in that 4%? Like, you haven't seen it anywhere because you're at 10. It's not going to make that big of a difference. I'm curious, why go for the second opinion? Did you agree with your boyfriend? Because it sounds like you just disagreed and you wanted someone to validate what you think you should do. I honestly didn't know, like, what was the best option. But my boyfriend and I said the same thing, where he said, like,

no, like, 0% is the way to go until we finish everything. But if you feel 4% is what you need to do, then fine. He's like, this is going to continue to allocate, and we're going to drag on this process even more. Oh, I get it. And you know, if you look to the culture, you get culture-like results and we're all about living counter-culturally. And so you're right. It sounds crazy to go to 0%. When you get the 4% match, it's free money, right? That's what you're thinking. That's what your brother thinks. And he's not a stupid guy and you can do that, but you're thinking. That's what your brother thinks. And he's not a stupid guy. And you can do that, but you're not going to get out of debt as fast as if you pause to go down to zero.

And it puts a fire under your butt because guess what? You want to go back to investing, don't you? Yeah. And so what does that do? It fuels your debt-free journey because now you're extra excited to get back to investing. Plus, you have a bigger pile of money to throw at the debt. Right. So you can do your plan and live your truth, but we have a plan that's worked for 10 million people, and I would encourage you to follow your boyfriend's advice in this regard and go to 0% for a short period of time. So how long is it going to take to pay off your debt if you went to

0%? If I stay super, it's also just by next December. Next December. So we're talking a little over a year, you'll be completely debt-free. Will you have a fully funded emergency fund, or is that going to be another six months after that? No, it's fully funded. Are you working full-time? Yeah.

Well, have you considered having a part-time job, maybe adding 20, 25 hours a week to make even more money to make that December next year turn into maybe summer, maybe less? I can pick up extra shifts at work, and so I've started to do that and see how much more we can add to it. Good. I love it. So we've allocated it to them. Good. Just consider that. Yeah, set an aggressive goal and say,

a year from now, I want to be debt-free with a fully funded emergency fund, and I want to get back to investing. And when I do, it's not going to be 10%. It's going to be 15%. And that money compounded as a young woman over the course of your career, man, you're going to be in great shape. So this is the one time I say I agree with the boyfriend. It's pretty rare on this show.

Oh, really? Do you have a pattern of calls where you don't agree with the boyfriend? Sometimes the boyfriends, you know, they can be knuckleheads, but this guy's got a good head on his shoulders, so keep him around. Yeah, he's paying attention to the Ramsey plan. She kept saying we, which I thought they had combined finances, but it sounds like he's just kind of acting as a financial coach yeah i'll tell you what i think he's doing i think he's playing the long game that's what i think you take a girl to a ramsey event next thing you know you

put a ring on it that's how it works i think he's going before i put a ring on it i want to make sure that she takes care of business uh you know let's get rid of the debt i think this guy's a very very smart young man because we know that money issues contribute to a lot of divorce right if you see you don't see i don't know money fights and money problems money fights one of the top causes of divorce yeah you know it was encouraging ken at the building wealth events we did all over the country but especially in phoenix was how many young people there were i did notice that that. Our crowds tend to be, you know, we're talking late 20s, 30s, 40s, 50s, 60s. There were so many people in their 20s who have been listening for years.

Yeah. And it gave me great, great faith in the current generations, the next ones. There are some amazing young folks out there who want to get on board, who want to do this plan. You know, I'm glad you said that. And I, you know, as a Gen Xer, you know, middle-aged guy, I get a little weary of people, you know, that have poo-pooed on the millennials for a long time. And now Gen Z, which is, you know, in the workforce, you know, they're in their young 20s. These are not children anymore. They're not. But I will also tell you that the

younger generation, Gen Z in particular, is very, very conscious of the world around them. There's some really interesting trends just on what they believe about the world and human value, but then very financially aware and responsible, not interested in debt. That's why you're seeing in some cases, college enrollment, not in some cases, it's dropping dramatically. And these kids are looking at student loans. They're looking at what they've seen, what they've grown up with, and they're going, I don't know that I want that. And I think that plays into why you're seeing a lot of young people listen to the show.

In a previous hour, we had a 13-year-old listen to the show. That's right. And these kids want a great future, and they see being able to be independent of anybody else and financially secure and independent, they see it as something that is really attractive. So you're right. It's encouraging.

Good on you young people. Thanks for listening. Feel free to call in. He's George Campbell. I'm Ken Coleman. This is The Ramsey Show. I'm Ken Coleman. George Campbell joins me.

We're thrilled that you're with us. 888-825-5225. 888-825-5225. Let's stay right here, George, in our backyard, Nashville, Tennessee. Allison is on the line. Allison, how can we help? Hey, thank you for taking my call. I just have a quick question about what to do with some side hustle money. So a little bit of background. My husband and I both work full time and have salaries. We have completed

through baby step three. So we've got a fully funded emergency fund, no debt other than the house. So I started picking up some freelance design work and I'm making anywhere from $600 to $1,200 a week. So I'm wondering if I should then take a portion of that after I save, of course, a little bit of that for taxes. Should I do 15% of the side hustle money also towards retirement or should I just take all of that and throw it towards the house and try to knock it out quickly. I love it. I mean, if you look at this as extra money and not part of your traditional income, I love the idea of you getting intense on the house and throwing it towards that. If you guys are on track for retirement. Now, if you look up and you go, you know what,

we haven't done a great job up until now investing for retirement. Let's use that money to max out the Roth IRA to fully fund the 401k. I'm good with that too. It's kind of a choose your own adventure at that point. Okay. Are you guys on track for retirement? So we are both investing up to our match, which is 5% in our 401k. So the next step is to up that to 15%. Oh, you're not at 15% yet. No. Okay. I'm saying with our salaries, we'll do 15%, but should I also do 15% of the extra money from the side hustle as well?

Yeah. I mean, I would say it's an option. And like you mentioned, if you really want to pay off this house, then it's totally okay to throw all of that money towards the house. And like you mentioned, I would set aside 30, 35% for taxes. Absolutely. Because those will be a big shock because you're making five grand a month of self-employed income and the government wants their piece of the pie. Oh yeah. Oh yes. It is set aside. Yeah. You save that at the end of the year, you look up and we are, all right, we know what we're going to be paying in taxes.

Or make sure you're doing quarterly estimated payments to the IRS. They love that when you're making this kind of side hustle money. And beyond that, I'd be throwing it at the house. And if you're on track for retirement, just use your salary to invest 15%. Love it. Thank you so much for the call, Allison. All right, Birmingham, Alabama is where we go. Chance is there. Chance, how can we help? Hey, can you hear me?

Yes, sir, loud and clear. Hey, I always had a question about starting a business potentially, and I don't know how many details you need. I'm 20. I just turned 29. My wife is 27. We are debt-free, including our home. We got some money put back. I have many talents. I just

don't know how to zone in on what I need to do. As far as you're talking about a career or a business, what are we looking at? Well, just starting another business. Right now, I'm in x-ray and MRI. I work in orthopedics. So, I didn't know, you know, I want to, I kind of have a feeling I need to start something, but I don't know what direction to go in. Yeah. Well, let's, let's do this. Yeah. Yeah, sure. Well, I'm just going to kind of dig a little bit with you. So have you had a few ideas that tend to kind of keep popping back up and you're just not sure about them? Yes.

That's where I want to start. What are the ideas, the business ideas that are maybe the top one or two? Hit me with them real quick. I thought about going into plumbing, potentially. I am a journeyman plumber. I'd have to advance to a master in order to go all the way with that. What's the other? I love flipping things like buying and selling stuff too. Like I feel like I do really good in some area of that. I love helping people. I like seeing progress. All right. That's what I want to lock in on. So we'll leave plumbing to the side and

we'll leave flipping to the side. And when it comes to coming up with a business idea, I work with a lot of people on this and we start with, who are the people you most want to help? I'm going to ask you three questions. That's the first one. Who are the people you most want to help? The problem or desire that those people have and then the solution or solutions to that problem or desire that you get most excited about. Now, when I walk you through that, your brain begin to visualize some things. And I want you to just tell me. Describe the people that you would most like to help.

Okay. The people would be anybody, and that would be people that are looking for something. Like they're searching for whether it be a car whether it be um you know some type of just something for sale that they're looking for um you know somebody in need of something okay what do you whether it be a tractor a car all right we got to go deeper all right because the answer can never be anybody all right because we don't we don't start a business that serves if i said to you uh hey i got a friend who's got a business and you said to me uh well that's cool so uh who does he serve and i said everybody you would be okay okay that's not possible okay

you get it now all right so here's the deal yeah okay if you want to get into sales all right if you want to sell something in the in the form of a product or a service, you still have to get clear on what that is, and then that will determine the audience. So we can back into this with those three questions. So tell me something. I think I've heard the answer. I think I've heard cars. But something that you would get excited about bringing to somebody as a solution. You helped them get this you'd feel

pretty jazzed about it what would it be um a deal i want somebody to get a deal on something like they they feel like they've got a good price on something does that make sense i don't know i'm trying to it does answer the question i don't know well you'm trying to answer the question. I don't know. Well, you're thinking too hard. Maybe you said you heard it. No, I think you're thinking too hard is what's happening here. I know. I can tell. You're a guy who's not lacking ideas. You're lacking decision. Like, I got to decide. I got to drop anchor. And so what you're speaking to is what I call mission, results that you are motivated by. You are motivated to serve people in a way that allows them to make a quality purchase. Quality meaning it's effective and it's cost effective, meaning it helps them and they got the best deal possible and you are the

conduit for that. Am I right? Yes, sir. All right. So that means you're going to be in the sales, I think, a business where you are selling a product or service. So now your exercise, and I'm not going to make you do this on the air, but the exercise for you is to determine what product or service that you get most excited about, which is why I asked the question, the people you most want to help. So if you can go, well, Ken, man, I'm really excited about providing water relief or, you know, when something floods or whatever, you know, or I get, I'm just making that up. But then we go, okay, well, then who are the people that you want to help? Well, people who've had some type of disaster in their home and they're freaking out and they want to get a good

person who they can trust, who isn't going to rip them off, is going to come in there and help them get the problem fixed. Do you see how I backed into that? Yes. Okay. So your exercise in your homework assignment, I'm going to give you some tools to help you. Okay. I'm going to give you my get clear assessment. Okay. Which is very personal in nature, but it's a 20 minute assessment selling like crazy at ramsaysolutions.com. This assessment is going to allow you to see what you're most talented at, what you love to do, and then the results that motivate you. In other words, talent, passion, and mission. It's going to fill out a purpose statement for you, and that's going to help you ideate business ideas based on that purpose statement. I'm also going to give you

my best-selling book, From Paycheck to Purpose, which will help you in this process. But here's your homework assignment besides taking the assessment and reading the book. I literally want you to keep working through who are the people that my business would help the most. Make it real personal, even though we're brainstorming. What is the problem or desire that my business would help solve? And then what would be the solution or solutions that my business would provide. It's looking at the same thing three different ways, but it's where ideas come from. And you've got to trust your heart that is throwing answers up at your brain, and you've got to stop overthinking and coming up with all the reasons why one idea is better than the other.

I think you've got plenty of ideas. You've got to listen to your heart, and your heart's going to tell you what you most want to pursue. That's, George, a very simple way for how people can begin to ideate on an entrepreneurial venture, because you've got to care deeply about it, because it's hard. And you can get the analysis by paralysis, paralysis by analysis, we get stuck. I don't know what to do, so I'm going to to do nothing we have to act and figure it out on the way George Campbell

you're a gentleman and a scholar thanks for hanging out with me to the team behind the glass led by James Childs our fearless producer

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