The Ramsey Show - App - Take Care of Your Four Walls First During a Crisis (Hour 3)

Episode Date: March 30, 2020

Rachel Cruze, Home Buying, Debt, Career Tools to get you started:  Debt Calculator: http://bit.ly/2QIoSPV Insurance Coverage Checkup: http://bit.ly/2BrqEuo Complete Guide to Budgeting: http://bit.ly/2QEyonc Interview Guide: http://bit.ly/2BuGnZE Check out other podcasts in the Ramsey Network: http://bit.ly/2JgzaQR 

Music Music Music Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studios, it's the Dave Ramsey Show, where debt is dumb, cash is king, and the paid-off home mortgage has taken the place of the BMW as the status symbol of choice. I'm Dave Ramsey, your host, Rachel Cruz, Ramsey Personality, number one best-selling author, joins me to answer your questions this hour.

Thank you for joining us. Open phones at 888-825-5225. Lily is with us in Arizona. Hi, Lily, how are you? Hi, Dave, I'm good. How are you? Better than I deserve. What's up? Well, me and my husband, we are first-time homebuyers, and we have just been looking into different mortgages

and trying to figure out what the best is for us. We're new at this and kind of don't understand everything. So we have two different loans that we've been offered, and I'm just trying to figure out which one's best. So one of them was at an interest rate of $2.99, but they had origination fees of $11,000. Mm-hmm. And then the other one...

What size loan amount? What size loan amount? Sorry, what was that? What size loan amount? So $166 is the loan amount. Okay. All right, go ahead. And then the other one that they offered was a 3.83%,

and then we haven't heard of any origination fees. So my main question is what are origination fees, and do they charge that for all mortgages? And then is that $11,000 high and not worth getting that for all mortgages and then is that 11 000 high and not worth getting that low of an interest rate for hey um well an origination there are two things that come into play here origination fees and points they are calculated the same way and they do about the same thing they just just go to different people, okay? They both are prepaid interest is what they are in essence.

So $11,000 you paid extra so that your interest is lower because you've already paid some of your interest. That's what it amounts to. Now, they are calculated this way. One point origination or one point points, either one. You're paying points plus origination or points with no origination or what's called a par quote, no points, no origination. But a point is 1% of the loan amount. So one point would be $1,660 in your case.

Okay? So $11,000 is a bunch of points. In other words, like six. Now, one point typically will buy your interest rate down, your annual percentage rate down, by between one-eighth and one-quarter of a percent. So in other words, eight points should equal about one percent interest rate. Now, you were quoted 299 and you were quoted three what? Eight-three.

Yeah. So basically one percent for eight points. So eight percent of your 166. I've got to try to find a calculator here that's working. But 0.08 times 166 equals 13,000. So oddly enough, they were charging you about seven points, about six points in there to get you not quite a full point of savings. So my math bears out in other words they're charging you're reducing it around an eighth of a percent per hundred thousand or per per one percent on the

interest does that does that make any sense at all a little bit okay if you pay eight points let's say you had a four percent interest rate okay at zero points and zero origination if you paid eight points you could get not a four percent but a three percent that makes sense okay so it's calculated as one percent a point is one percent of your loan balance but eight of them reduces your annual percentage rate by about one so the bottom line is if it's an eighth it it does not make sense, which yours are, because that means it takes you eight years to recoup this money. You're not going to get this money back for eight years with what you're saving.

If you could get it back, if it was a fourth, you could get it back in four years. You might look at it, but they're charging too much for these points. Okay. And that's what I needed to know. Do you see how I did that? Yes, I do see how you did that. And I kind of draw the doubt notes. Okay.

All right. So call Churchill Mortgage and have them give you a quote. It's called a par quote, zero points and zero origination. It's fairly typical to pay one point origination and then pay some points beyond that, maybe. But one origination doesn't bother me. Eight or seven, like they're charging you here, they're jacking you around. I'll pass on that company.

Okay. And that quote did not come from Churchill, did it? No, it did not. Yeah, I didn't say. I hope not, but it better not. Really, it's not a very good offer. So, yeah, you should be able to get around a 3% 15-year fixed this week, somewhere right around there with one point origination and no other points.

Okay. And do you think a 15-fixed mortgage is better than a 30 year mortgage? It's the only thing we ever recommend, right, Rachel? Yeah, that's right. I mean, the faster that you can pay this house off, the better. And some people take a 30 thinking and having the intention to pay double on the mortgage because they get the better interest rate on the 30 versus the 15. But life always happens. So just go ahead and locking in a 15-year fixed, yeah, is definitely the way to go. Okay. Hey, good job.

Good job. Good question. Thank you for joining us. Open phones at 888-825-5225. You guys jump in. We'll talk about your life and your money. Up next is going to be Nick in Florida. Hi, Nick.

Welcome to the Dave Ramsey Show. Hi, Dave, and thank you for taking my call on my question, and I'll jump right into it. My question is, when do you think it would be okay to take a shot, because the market's so low on something, just as an example, say, as oil, across the board and take a shot with, like, say, $50,000 or something like that, assuming the market would bounce back and the oil would jump back up. I'm new to what you guys do. I know vaguely about you, but I just figured I'd give you a call.

Cool. I appreciate you joining us. So I don't invest in commodities at all. I like lower-risk investments, and I don't like the risk of stuff like that. There's no question oil is on sale right now. I don't disagree with what drew you into this conversation but the bottom line is is the price of oil is controlled by only a couple of things supply and demand and the supply and demand is controlled by whether

the middle east and or the uh domestic producers want to just turn on the faucet or turn off the faucet right now the only reason prices are down is the faucet got turned on, and the market's flooded with oil. It's oversupply versus demand. Thus, it goes down. All they got to do is turn those faucets off. It goes back up. Or they could just turn them on and leave them on.

It's up to them. You have no control over it whatsoever, and there's no way to analyze it. That's why I don't buy gold. That's why i don't buy any futures on grains or anything else because i can't control what is going to because the only thing that drives a commodities market is supply demand and it's enhanced by fear and greed and so it's not a it's not an analysis of an investment i can do that i'm comfortable with i can analyze a mutual fund and look at its track record, see who it's invested in. They actually make money in those companies, and I can tell if those companies are worth investing in.

So I don't buy commodities. You can do it if you want, but it's a super high-risk play, and I just personally don't do any of it. This is the Dave Ramsey Show. Are high health care costs getting you down? Are you confused trying to navigate your options? Do you wish you could find an affordable, biblical solution to your health care costs? Based on New Testament principles, Christian Health Care Ministries, or CHM, helps Christian families, churches, and ministries join together as the body of Christ to share their major health care costs.

Christian Health Care Ministries is the original health cost-sharing ministry. A Better Business Bureau-accredited organization, CHM members share to pay each other's medical bills. It's not insurance. It's Christians financially and spiritually supporting each other. It's what Christian Healthcare Ministries has done for over 35 years. And our members have shared over $2.5 billion in medical bills. To learn more, visit chministries.org. That's chministries.org.

Christian Healthcare Ministries is a proud sponsor of Dave Ramsey Live Events. chministries.org. Last Thursday night, Rachel Cruz, Ken Coleman, and I did a message of hope for 52 minutes. And you can watch that on any of our social outlets you'll find it on youtube you'll find it on facebook on my instagram 210 000 people have watched it alone as of this morning on my instagram millions overall have watched it and uh we appreciate you guys hanging out with us that night live and the event is still available of course it's completely free that inspired us for each one of the ramsey personalities to do their own message of hope uh want a night uh for the next several nights rachel cruz is tonight you can join her rachel you'll be talking of course about money but what in specific yes about what to do with your money

right now so we're getting very specific on how to handle it, different situations, and answering some of the most common money questions that we're getting all with hope all around us. There you go. Chris Hogan is tomorrow night. Christy Wright is on Wednesday evening. Dr. D., Dr. John Deloney, newly minted. Ramsey Personality is Thursday evening. Ken Coleman, Friday evening on careers and jobs. Boy, that's an important topic right now. And of course,

Anthony O'Neill, one week from tonight on Monday night, will conclude. And you'll be able to find those messages on any one of our feeds, our Twitter feeds, our Facebook, our Instagram, our YouTube channels. All of us have all of those. They'll all be podcasts. They'll be listed in the Ramsey Network Podcasts. And XM Radio is playing them all each night live. And so you'll be able to find them that way as well.

So let your friends and relatives know because, you know, one of the things that affects our attitude in times like this is the inputs into our brain. What are we reading? What are we listening to? And it's good to have information. You don't want to have your head in the sand. But then sometimes people spend so much time with the pandemic negative that the real pandemic is fear has just spread. It's more contagious than the virus is. Yeah, it's a spiritual thing. I think right now in our country and our culture

is that we're making decisions and just functioning in constant fear and anxiety. And we know we've talked about Thursday night, but it's true. You can just control what you can control and everything else. You just have to let go. We can't control what goes on in Washington. We can't control what goes on at the state level. And so really just letting those things go and figuring out, okay, I'm going to make a plan for my life, for my money, my job, fill in the blank and do what I can in my part to, to help my life. Yeah. And you can't control what goes on in your neighborhood and you being mean on your neighborhood Facebook page. What's that thing called?

Next door. Yeah, next door. Lord, help you people. Man, it's turned into the mean woman next door in a lot of cases. Oh, my gosh. Because y'all are just trying to manage everybody else's business other than yourself. And it makes you mean. And you're ignorant when you're doing that and it really you know some of you've been mean to your own relatives i mean it's just you need to stop

and be calm you know for goodness sakes cut each other some slack have some compassion and grace that's what i always want to say to people on either side right i'm like no matter what side you're on just take a deep breath and just realize everyone's handling this. The two sides being the economic issues and going back to work versus staying in your home until Christmas. And these two things, either extreme is obviously out of hand. But people are taking these fear-based decisions on the economics. If we don't get back to work, the entire economy is going to crash. We're going to all die. If we do get back to work and you're reckless with your social distancing

or whatever it is I'm accused of all the time, then you're going to die and you're going to cause everybody else to die. And the data is just not supporting either one of those ideas. It's just not there. So it's important that the cure not be worse than the disease, and it's important that the disease be treated. So just cut each other a little slack, you know. I mean, there's no reason to be mean to people.

But the only reason is that people who are normally nice are just being ticked off right now. Check out DaveRamsey.com slash hope at that page. We have the Financial Peace University, the first time in 30 years we've ever done this, and it's just for you, and it's just for right now. It's all digital. It's all online. So those of you that are quarantined or those of you that are self-quarantining or whatever the phrases are where you're staying home, whatever it is, you have the ability to go through the entire class. It's a 14-day free trial, the premium version of Financial Peace. So the Smart Money, Smart Kids class taught by Rachel on how to teach your kids how to handle money,

the legacy journey, the entire nine weeks of Financial Peace University, the advanced EveryDollarPlus portion of the EveryDollar app. It's all in there, and it's all 100% free for 14-day trial. And those of you that are binge-watching Tiger King, you can probably binge-watch Financial Peace University and make your life better. Okay, just choose. One's got to be better than the other. You've got to think about this.

It's a hard decision between the two. Just think about it for a minute. It'll come to you. But yeah, I mean, you could choose what your inputs are. Your inputs matter. You really do. They do matter. And, you know, you got to think about what's going into your brain because it affects your spirit. It affects your decision making. And you've just got to make you know, just got to make a call here that makes a lot more sense. And so, anyway, check out these messages of hope by the different Ramsey personalities, the message of hope that kicked it off last Thursday night. Check out DaveRamsey.com slash hope, the 14-day free trials there. A bunch of other wonderful stuff is there, and there's new things coming up there every day.

Today we added a really special thing that I'm excited about. We have a product that companies buy to put their all their employees through our curriculum to teach them how to handle money. It's called Smart Dollar. Like for instance Costco bought it for all their employees like two years ago and they continue to buy it and that you know all their employees have been going through. I see Costco people when I'm down there and they're like, hey, Dave. So that's really cool. Now, what we're doing with Smart Dollar is this. We launched it today at DaveRamsey.com.

If you are a company that has had to lay someone off, regardless of your size, all the people that you have had to lay off, we will make Smart Dollar available to them for free. They can go through the class for free. Now your company has to set this up, get in touch with us. If you have been laid off, call your old company, your old boss and say, Hey, Ramsey's doing this for smart dollar. He, you know, if all you got is call over there and set it up. And then all of the people that have been laid off or furloughed, either one, we will let them go through smart dollar for free these are things we are doing right now in the middle of this crisis that we can do to help on our part of the equation

will is with us in arizona hi will welcome to the dave ramsey show hi dave pleasure to speak with you sir you too sir what's up i'm going to run down these numbers. I need your guidance to tell me if I should pay off my 401k balance here. Okay. We started with 76k in July of 2018, down to 8,200 left on my 401k. Stupid loan. Okay. We make between 114,000 to 108. I'm 58. My wife is 49. I'm a CSR for a large MRO company. My teacher is pre-special K needs teacher. We've got about 7,500 in savings right now. The balance is 8,200. I'm kind of just nervous about this virus going around. If we should just make the jump here in the next couple of weeks or so to pay it off when we have the full balance amount to pay that off. Are your jobs in jeopardy?

Final payments, I got an $8,000 final payment coming for my new hearing, so it might be showing up here soon. Are your jobs in jeopardy? Typical question, Dave. My wife is a teacher, so she's under contract. She's not in jeopardy. wife is a teacher so she's under contract i don't think that they can get off me uh could be about a 25 chance maybe that i could be laid off okay i would wait until i had a little bit more money um we always say a thousand dollars and if you're going to keep working the baby steps a thousand dollars is fine because you shouldn't keep working the baby steps unless your jobs are in jeopardy

so uh in your case though um you know you can just push pause on your baby steps, build up some cash. And I don't know if you had $5,000 left over or something like that after you paid this off. That'd be fine. Push play once you get a little more cash built up. But I would just push pause. I'm not changing what we're doing. Just pushing pause and then pushing play. That's the whole thing.

Some of you are needing to do. You know, we need to review those ideas when we come back from the break help me remember to do this is the Dave Ramsey Show We'll be right back. Kathy is with us in Illinois. Hey, Kathy, welcome to the Dave Ramsey Show. I see you're debt-free. Congrats. Thank you, Dave. Proud of you.

How much have you paid off? I paid off $89,500. Good for you. And how long did it take you to do this? I did it in 10 months. Wow. And your range of income during that time? It was $150,000 to $187,000. And I did receive a $39,000 payment from a company I was working for that sold during that time. Ah, so extra $40,000 towards the $89,000 doesn't hurt. or $39,000 towards the $89,000 doesn't hurt. Yeah, very good.

And then you cash flowed the rest, or did you sell something? Well, I sold a lot of things. I sold jewelry. I sold dresses, purses. Like every morning I would wake up and like see what I had and take pictures and list it online. So I was just like selling everything I could. And, uh, but that's it. The rest was all cashflow. That's amazing.

I'm seeing your stuff right now on YouTube. They're pulling up a picture and I'm like, yeah, girl, the minimalist would be proud. I love it. Doesn't it feel good? Just get rid of stuff too.

Not only to pay off the debt, but just to like declutter. It feels amazing. Like it's hard to let go of that first one, but once you do it, it's like, I don't need this. And once you pay off the debt, you can always buy more, you know, if you still want it.

That's amazing. So what was all the debt, the almost 90 grand? It was $68,000 in student loans, $20,000 in credit cards, and $1,500 was a personal loan from my dad. And I just felt great to pay that back. I bet. That's fun. That's fun. Very cool. hundred dollars was a personal loan from my dad that I just felt great to pay that back. I bet. That's fun. That's fun. Very cool. So what got you so fired up 10 months ago? Oh my gosh. Well, I've been, I was Dave-ish for about six years. I found you on Reddit. I read the total money makeover and I was like, these people are liars. This is not possible. Um,

cause I obviously had like a lot of debt and I felt very hopeless. Like I could never, ever pay it off. And that book gave me like the hope that I actually could do it. And so at least it sat me, like I didn't go all in at that time, but I didn't buy a new car and I started making better choices. But like about 10 months ago, um, two things happened and I went on a vacation and for the first time I didn't bring a credit card and it is like a way better vacation than when you bring a credit card. I had no anxiety like at all. And I was like, oh my God, what do I have to do to be able to do this? This is way better. And then also like my dog died and he had like all these health

problems. And I always felt like I could never like be, I was never like good enough for him. And I was always like worried, like my hand would be like shaking at the bat, like hoping I could pay the bill. And I was like, you know what? Like I have to do this for him,

like enough, set it up so that you can really like live a better life for you and people that you love. Cool. And then you went through financial peace. I did. I came back from vacation. I was like,

all right, let's see if this is all it's cracked up to me. So I signed up. I bought the book and the class. And I remember like waiting. It was like really fast shipping, but it felt like forever. It was like five days. And I was like, where's this book? I got to start my journey.

So then like I like open it up. I was like, all right, today's the day. Like this is it. And I started going to class, met like some awesome people, got a ton of good tips, using every dollar every day. And it just really honestly felt like it happened so fast. Yeah. Well, 10 months is pretty quick.

I mean, you were pretty intense, though. The intensity you used is what moved it so quickly. Congratulations. Very, very proud of you you so what was the hardest part kathy for you on this whole journey gosh okay the hardest part i did not want to stop my 401k contributions because i love investing and like my friend had to sit with me in the coffee shop when i pushed the button down to zero um but like it because i was like this is like this is so hard it's crazy and to be honest I did it a few years before.

I was like, oh, I can set my 401k and pay off my debt. But I wasn't organized enough. So I was just like, the money was just like gone. And so I was like, oh, I'm so worried about doing this again. But like, it's so true that it really motivates you. And once I was like, oh, if I'm not saving for retirement, like I'm definitely not buying this trash from a store that I just like walked into for no reason. It's so true though, right?

It like changes, it changes your perspective so much. I'm not trading that for my 401k. I like it. What do you do for a living? I work in HR. I do recruiting. Ah, and what was your, what was your degree in? Well, Dave, I actually am one of those people who went to law school.

Ah, good. Okay. And i'm not even an attorney my parents paid for my entire undergrad education um i walked out with zero debt and i pumped like 90 grand down on the next three years for a career that i didn't even want and uh that was with a scholarship but it all worked out i work in legal recruitment now so i'm definitely using it but it wasn't like the journey I would recommend yeah so why did you just curious why didn't you go and take your bar um because like my heart just wasn't in it and I really wanted to do something where I felt like I was helping people and so like I felt like I had made some misguided decisions with my career and so if I could help other people like make better choices for

their lives that that would be something I would find like fulfilling and so like I love my job and you know for people who are like struggling right now like I hope that like people can do something that they love too because it just every day was easy like even the hard days you just have so much gratitude for what you can do yeah so how often as a recruiter do you tell somebody they shouldn't do that because they're there you think they're going the wrong direction? I mean, I'm pretty honest. I have a lot of data points now from being in this for a long time, and I definitely coach people not to go into debt at all if they can't at all. And especially to have a clear plan, and sometimes you do have to take a step back in your career to like move forward but like what i've learned is you know i could have been doing this when i was making half as much money as i was i always felt like oh i need to earn more i need to out earn my stupidity and like i just

wish i could have started sooner and you know doing something you love like the money will come to you eventually so like just start now yeah very cool good for you proud of you so how does it feel to be free it's amazing it's the best so good okay i'm curious what did your friends say as you were doing all this oh my god okay they are so supportive they are listening now i've got to set up to two girls from fpu celeste and maria i know celeste is going to be up here before we know it um and my friend like they you can tell like i'm obsessed like i love it it's like you can make it like a hobby like it's fun like you sell something you pay the debt you record it like i use fpu tools and everything and um they never once told me i'm annoying like that's good those are some good friends though you're saying even if you were

they didn't tell you that's what you're saying i got you exactly exactly i love it you're fun well we've got a copy of chris hogan's book for you everyday millionaires because there's not any doubt miss kathy you're going to be one so proud of you very very well done very well done i'm sure your dad was one of your cheerleaders wasn't he he absolutely was he was i think quite frankly shocked when i repaid him um and we took a picture of it oh there he is at the atm okay i love it that's funny that's great very cool well kathy congratulations all right kathy's in chicago ninety thousand dollars paid off in 10 months with a thirty nine thousand dollar bonus and the rest of it just went after it, selling everything in sight, making $150,000 to $187,000.

Count it down. Let's hear a debt-free scream. Three, two, one. I'm debt-free. Yeah. I love it. Woo. I think it's some of my favorite people we get to talk to because I can relate to them.

Anytime I hear something like we teach, my first, I've got the gift of cynicism, and my first thing is to be suspect. No, not you, not trusting. Not me. I don't trust anybody. I mean, I'm just old and I've seen it all, you know, and so everything's a scam. And, you know, a lot of people think we are you know and i understand that so i love when someone gets in there and figures out in spite of their doubts uh they keep investigating keep poking around until they get enough that they start to feel comfortable and realize we are

actually credible and that the stuff we teach has actually worked for millions tens tens of millions of people now, and they start really doing this stuff. It's just so fun to hear somebody, because she's not going to shut up about it. She's going to keep going forever. Well, and the behavior change is what we always teach. And so even hearing her say, oh, it's just so fun. I can sell something, put that money here. It's feeling good. Like, there is.

There's so much emotion in it. And so that's what changes your behavior and keeps you motivated. And, yeah, you can just hear it in her voice. I loved it. Good stuff. Rachel Cruz joins me this hour answering your questions right here on the Dave Ramsey Show. Thank you. Our Scripture of the Day, Philippians 4-5. Do not be anxious about anything, but in everything, by prayer and supplication, with thanksgiving, let your requests be known to God. Confucius said, Our greatest glory is not in never failing,

but in rising every time we fall. We are going to be okay. We are going to be okay. Be sure you join Rachel Cruz tonight as our Hope Series continues, a message of hope series, Rachel and Ken Coleman and I did one last Thursday night. Hers is tonight at 7 p.m., and it's all about what to do with your money right now. You'll be able to watch it on Rachel's YouTube and Facebook channels, just Rachel Cruz,

and you can subscribe to her YouTube channel. She has a show on there regularly as well. And then tomorrow night is Chris Hogan. Christy Wright is the next night. Dr. D, Dr. John Deloney on Thursday evening. And Ken Coleman on jobs and careers on Friday. Anthony O'Neill on next Monday. So all the Ramsey personalities putting a message of hope out there.

It will be on our podcasts, on all of our YouTube channels, on Sirius XM. It's going to be everywhere. Everybody is yearning for level-headed thought right now, and that's what we do. We're all about common sense education and empowerment, biblically-based common sense education and empowerment. It's our based common sense education and empowerment. It's our mission statement. Yeah. And I think more than ever in our world, this is it. So we're trying to give you as much content, as much direction as possible when it comes to your life and your money.

And yeah, that's, it's a great, it's an exciting series, a message of hope. I mean, we've never done anything like this where we've put out this kind of content so close together and with all the Ramsey personalities coordinated and everything. No, we never have. Not since there were this many personalities and so forth. We did a thing back in 2008 called Town Hall for Hope that we did that had, this was, man, it was a whole different world as far as delivery mechanisms on the Internet and stuff.

But it was a big deal. It was me, I guess, by myself, if I remember right, doing that. And so this is a whole different thing. And, you know, you'll get these different personalities, literally, that you can plug into. And some of them you relate to more than others. Sure, absolutely. Yeah, and all different messages, really, around what we talk about here at MC Solutions.

So it's exciting. So, yeah, make sure to check it out, again, Facebook or YouTube, and then it will be on podcasts as well. Jerry's in Texas. Hi, Jerry. Welcome to the Dave Ramsey Show. How's it going, buddy? Better than I deserve.

How can I help? My situation is I haven't been laid off yet, but I think it might be coming because they closed the business where I work. It's, it's a nonprofit and I've already heard that they've already laid off some people. So I'm, I'm, I'm afraid that they're going to tell me, but then there is hope that I did, did talk to my boss. He says that when this is all over, they do want to bring everybody back as soon as they can.

But I don't know if that's even going to happen. But my real question is, since I might have to file for unemployment insurance if I get laid off, I got a letter from my mortgage company saying that if I need to defer my payments or something like that, is that a good thing to do and for how long? How much do you make now? Right now I make about $25,000. Okay. Rachel? Yeah, I mean, Jerry, if I was in your position

and you said that the nonprofit closed that you worked at, and so more than likely I'm assuming, yeah, the job layoff probably is in your future. So I would plan as much as possible that if or when that occurs, whatever you can do to actually make money. And there are so many jobs now. I mean, so many markets sadly have just tanked and others are now thriving. So there's actually jobs to still be had. And your income is one that I feel like you can definitely make up by working one, two, even three jobs if you had to during this time and trying to stay current. I would resist filing for

unemployment as much as possible and making sure your four walls are covered. And that is your food, your shelter, utilities, and transportation. And if it gets down to it though, and you're not able to make that mortgage payment, there are industries giving those grace periods. So that is something you could take advantage of if it came down to it. But I would do everything in your power to bring in any type of income and cover those four things first and foremost.

Agreed. If you can pay your bills on $25,000, you shouldn't skip a beat. Amazon's hiring 100,000 people. Walmart's hiring. All the pizza places in town are hiring for delivery. Pepsi is hiring. Aldi is hiring.

Every grocery store is hiring out there. I mean, you can get, if you deliver pizzas every night, six nights a week, you can probably make what you're making now right at it, especially right now. I wanted to ask, why do you say not to file for unemployment? Because you can make more if you'll go to work. Oh, okay, okay. If you'll just go get some jobs, you can make more than you're making right now.

The bad news is that you might be losing your job the good news is it's only 25 000 bucks and that's fairly easy to replace uh uh now if now if if i need to uh and and and should i call my mortgage company up and say hey i'm on uh whether i take my credit, if I do, I deferred thing. If you defer it, if you defer it, you're going to, that just means you put it off. You're going to make it up later. And I guess my point is this, if I woke up in your shoes, Jerry, and they said layoffs coming, you're sitting at home right now, right?

Yes. Okay. I would go and apply at Amazon and delivering pizzas and be driving for both of them, Amazon during the day, pizzas at night, and you'll make half again what you're making now. And you have no need to defer and no need for unemployment. Fill the gap. There's a lot of people hiring.

Now, those aren't jobs you want to do the rest of your life probably, but as a stopgap measure for 30 days or 60 days until your company gets back on its feet, you can do anything for a month. You feet. You can do anything for a month. You know, you can do anything for two months. Is your health okay that you could afford to do that? Well, see, that's another thing. I haven't been feeling lately. You know, myself, I haven't been feeling good.

And so I'm going to go see a doctor this coming week. Well, you certainly need to do that today. You don't need to do this coming week. I mean, it's today. If you're not feeling well, you need to find out, because you don't need to be out there doing what I'm talking about if you're symptomatic, and you don't need to be out there if you're ill in some way doing what I'm talking about. But you couldn't be at your other job anyway.

Oh, and by the way, they haven't laid you off yet. That's right, yeah. So let's go find out about that. Now, let's say that you have the coronavirus, so you're down for 14 days, okay? You're not going to be down for 14 days based on what most people are experiencing, but you are going to be quarantined for 14 days.

You're not going to be earning an income. You may end up having to file for unemployment. You may have to end up deferring one month's of mortgage, but I wouldn't do that unless I had to. I mean, you may have the flu, and you may be over it in five days and get your butt to work. You may have hay fever, you know, in Texas. That could happen, and you know, if that's the case, I don't know. I'm not diagnosing you. I'm just saying, let's not assume that everything in your life is going to turn south, your health and your job, and so therefore unemployment, and so therefore delay on your mortgage.

But that's your worst-case scenario, and then 30 days from now you come back, you kick its butt, and you get caught back up. But I think the thing is to run into this. Don't stand and watch it come at you. It's really important to be proactive in these situations. That's what I was going to say. I feel like a lot of people are reacting now because this came on so suddenly and everything, so I can't blame people for that.

But as much as you can stay ahead of all of this, just like you're saying, and being proactive happening to the situation versus everything just happening to you, it's going to change the game for you a month, three out yep absolutely it's important so the four walls folks Rachel and I talk about this all the time we forgot to do that for the break earlier oh I forgot to remind you too sorry okay my bad yeah tomorrow but uh yeah the the idea is if you're in a situation where you need to stop your baby steps you take care of food shelter clothing transportation and utilities and nothing else. Let everything else sit.

If you get a month behind on it, so what? Pile up cash to make sure your necessities are taken care of until you get the other side of this. That's what we've always taught if you were in a crisis. Not everybody's in that crisis. That puts us out of the Dave Ramsey Show in the books. We'll be back with you before you know it. In the meantime, remember, there's ultimately only one way to financial peace, and that's to walk daily with the Prince of Peace, Christ Jesus. Hey guys, it's George Camel, host of the Dave Ramsey Show video channel. This hour is up, but you can find more great content on our YouTube channel. Catch the most

watched Dave rants, debt-free screams, and the very popular Everyday Millionaire segments. Go to the Dave Ramsey Show YouTube channel and click subscribe.