The Ramsey Show - App - Taking Out A Credit In Your Kids Name Is Horrible Advice! (Hour 3)

Episode Date: November 4, 2022

Rachel Cruze & George Kamel discuss: How to increase your income to get out of debt, What you should do with a 401k from a previous employer when switching jobs, Why you should NEVER take out a credit card in your kids name, How to get out of inheriting a timeshare, How to manage finances when taking a pay cut to get your dream job, Apply the debt free lifestyle to your small business, How the people you surround yourself with can affect your spending habits. Gazelle – Terms & Conditions Apply. Visit www.ramseysolutions.com/gazelle for more information. Established by Pathward, N.A., Member FDIC. Have a question for the show? Call 888-825-5225 Weekdays from 2-5pm ET 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

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🎵 🎵 🎵 🎵 🎵 Live from the headquarters of Ramsey Solutions, broadcasting from the Pod's moving and storage studio, it's The Ramsey Show, where America hangs out to have a conversation about your life and your money. I am Rachel Cruz, hosting today with Ramsey personality

and co-host of the Smart Money Happy Hour, George Camel. So it's a free call anywhere in the country at 888-825-5225. All right, starting us off, this hour is Tamara in San Diego. Hey, Tamara, welcome to the show. Hi. Yes, this is me, Tamara Simmons. I'm a college student. I go to Gracemont Community College. Oh, great. And I kind of, yeah. Sorry about that. I'm kind of nervous because I watch you guys show like all the time. Oh, we appreciate that. we're so glad you called today

wow you act like you just won a game show all right i love it love the energy what's your question how can we help okay so um i'm in six thousand dollars uh six thousand dollars in credit card debt with navy federal with the green card and but I have a student grant that's coming in. That's like $4,000. The only thing is I'm a caregiver nurse. And so I had got ill from COVID and scabies. So I couldn't, my payment of, you know, getting paid went down the drain. Okay.

I'm so, I'm sorry. You guys, I'm kind of nervous. No, you're fine. You're fine. So you couldn't work. You couldn't work because you were sick, which means you missed a few paychecks? Yes. Okay.

Are you working now? Um, it's really hard to get back into that field because I don't have a consistent client. Okay. So it's only fill-in. Okay. Is there any other kind of nursing you can do? I apply for other jobs, but since it's the COVID vaccination shot, since it's the COVID vaccination, I have early, sorry, allergic reactions.

Oh, so you can't get the vaccine, which means they won't hire you. It's probably going to be a hard industry to be in, Tamara. How are you paying your bills right now? Are you making any kind of income? So as of right now, I do DoorDash, but I only can make like $250 a night for DoorDash. But that causes a lot of problems to the car. Okay. And I already bought like three cars in the past, and I know how that goes with cars.

How much money do you have in the bank? So what I have in the bank right now is about like $30. But I know my student grant is going to come. I've been maintaining stuff. I still have a phone bill I have to pay. I still have SD&G I have to pay. So I've kind of been paying little stuff with Doorash. And when do you get the grant, the $4,000?

They told me next week. Okay, okay. So yeah, I would hang on, keep doing the DoorDash, whatever you can to continue to just keep your head above water until you get that grant. And then you're going to have to have, yeah, plan B happening really soon, Tamara, because that $4,000, it's going to go rather quickly. And so being able to say, okay,

nursing in the medical field, you know, not having the vaccination, I'm assuming, I'm not a medical professional, is going to be a tough... It's going to hurt your chances of finding any employment in that field. So if there's something else that you're passionate about and to be able to do something on the side, but I think while in school, picking up these side hustles is going to be your best bet. And even if it's, you know, house sitting, dog sitting, yes, the door dash, the Instacarts, all of that until you're out of school and then finding something, you know, and even if it's it's not may not be in the medical field, George, but I'm like, even, you know, getting a entry level, you know, assistant job or, because you said you were a caregiver, Tamara,

so maybe you're really great at helping and serving people and it could be more in a office setting versus a medical setting. But really finding that is going to be huge and that $6,000 of debt that you're going to start to work to pay off. And so that's kind of the plan. And cut up those cards, please. Don't even give yourself the option of going further into debt. That's right. All right. Up next, we have Alex in Indianapolis. Hey, Alex, welcome to the show. Hey, Rachel George. Can you hear me okay? Yes, we can. How can we help? Hey, so I'll try to keep it brief. I'm 33 and I just started a new job.

I'm trying to figure out what to do with my money, my 401k from my old job. So I have about $430,000 in a brokerage account, kind of a bridge fund I was saving up for. $200,000 in my Roth IRA and about $200,000 left from my old employer 401k. So I had not known that I was going to get a job right away. So I paid this about an extra 70 grand as kind of a bridge fund until I found a job or if I wanted to take a little sabbatical or something. So I'm trying to figure out if I should either one, invest or move the pre-tax 401k, that 200,000 into my Roth IRA and pay the taxes with that $70,000. Or if I should just invest it and keep going into my brokerage fund, kind of that bridge fund I'm developing now,

which will eventually probably be a house fund. Where are you at in the baby steps? Do you have any debt? No, I'm in baby steps seven. I haven't ad debt score. Awesome. What do you do, Alex? I'm an engineer. Amazing. I worked at my previous company for about 10 years, and they started a Roth 401k about halfway through, so half my money I've already kind of moved out of that 401k. It's the pre-tax stuff that wasn't Roth in that first five years

that I was working there. Yeah, I mean, we would tell people, you know, don't do the Roth rollover because of the tax burden until you're at baby step seven. But if you've got a paid for house and you've got the money to cover the tax burden on that, that could be a great option to do a direct rollover. I would not cash it out and invest that money because that will create a whole new set of tax burden that I don't want you to experience because of all the penalties there. So if you do a direct cash it out and invest that money because that will create a whole new set of tax burden that I don't want you to experience because of all the penalties there. So if you do a direct rollover, you'll avoid all of that. But you'll pay for the taxes, but you have that 70 grand to cover it.

Yeah. And that's, you know, and so I don't own a house yet and that's what that 430 is going to probably do once I get through. And so that's kind of where that's why I'm chunking. If you don't have a house, I would personally just do a direct rollover to a traditional IRA. Okay. Instead of the Roth. Keep that $70,000. And keep that for a down payment on the house. Yeah, I would use that bridge and brokerage outside of an emergency fund.

I would use all the liquid cash you have that's non-retirement towards that house. And if you can pay cash, man, you're crushing it. I mean, how cool would it be if you could just pay cash for your first home? Yeah, that's what I'm looking forward to. I'm not going to be in a location where I'm going to stay for another two years. My fiance, she's finishing her fellowship, and I know we're going to move after that. Sweet. That's great.

So at 35, you keep stacking up cash. You pay cash for your first home. You're already a millionaire, but definitely do the direct rollover to avoid any taxes in the situation to the traditional IRA. And get the real estate. Get that first house with that extra money. If you don't have a financial advisor already, a SmartVestor Pro, go connect with one at ramseysolutions.com. A guy of, you know, with where you're at financially,

you're going to be ultra, ultra wealthy. And we want to make sure that you are a great steward of what you're building, man. That's awesome. Great job, Alex. Great job. Thanks for calling. This is The Ramsey Show. សូវាប់ពីបានប់ពីបានប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពី Welcome back to The ramsey show we're taking your calls at 888-825-5225

so george normally i am very prepared for this show and anything that's thrown my way besides the callers i am i'm on the ball but this i am not yes so we so I'm really on the edge of my seat for what's about a minimum of like 47 people have sent me this video being like we need you guys to react to this video we need your thoughts on this is this true what's your take and so Rachel has not seen this I have seen it and we're gonna get Rachel's kind of blind reaction here are you ready I'm not even going to set it up. I don't even know what's about to happen. So if it's a friend's clip, I'll probably quote it. It is not. It's a quote from Notting Hill. I'm probably going to know this. I don't know. It's hot money advice from social media. Oh, okay. Get ready. Rich people help their kids get perfect credit scores long before those kiddos can apply

for their own credit card. And it's not even that complicated. I can explain it to you. I'm Vivian, your rich BFF and your favorite Wall Street girlie who you follow for all the money secrets. As soon as my kid is born, I'm going to set them up as an authorized user on my credit card. As you can see, with the exception of Discover and American Express, most of these credit card issuers don't have a minimum age requirement. This means I will be issued a credit card withuers don't have a minimum age requirement. This means I will be issued a credit card with their name on it, but I'll be responsible for paying the bill. And you're probably wondering, what does a baby need a credit card for? They don't. Instead of giving the card to them, I'm either going to cut it or I'm just going to put

it in a safe location. I will then proceed to make on-time payments on my credit card bill every single month. By doing so, I'll start building good credit for my kid, allowing them to leech onto my good credit. By the time they finish high school, they'll have built a credit history of 18 years and have a score in the high 700s or even 800s. This will help them rent their first apartment or qualify for a great credit card of their own.

Oh my gosh, you know what I just went to, y'all? What if someone watches that on Instagram and they're terrible with money? They put their kid in this situation and they don't pay their bills on time. Does that mean you just screwed your kid's financial future? Like ding, ding, ding, ding.

That is so scary to me. Vivian, I've seen her videos and she does have some great videos. I have seen her. There is some stuff she does. Sharp young lady, but we don't agree the debt thing, which we don't agree with anyone on social media

because I feel like we're the only ones that talk about being debt-free for the most part. So I don't agree with all that. But that's scary to put that out there and trust the American culture who has average $15,000 of credit card debt. But Rachel, this is what the wealthy do, okay? This is what the true rich are doing

to set their kids up for success. That literally gave me anxiety. I don't have anxiety. I don't really like, anxiety is not my thing, but I just had it. That makes me so sad. Can I tell you, Rachel? I don't trust it. And the fact that, yes.

Okay, hold on. I have so many thoughts. Okay. Okay, hit us. And then B is you don't need a credit score. Our thing is you shouldn't have a credit card anyways. You don't need a credit score. Don't be our thing is like, you shouldn't have a credit card anyways. You don't need a credit score.

Don't be like trying to like rig the system to get a good credit score. Because listen, teach your kid to pay for everything with cash. And then when they went home, they can do manual underwriting and they're fine. So it's unnecessary, number one, or number two. But number one, she's advising people that most of America is terrible with their credit cards. So like they're going to screw their kids. Right? Yes.

You just solved the problem, Rachel. I went to the comment section. And the very first comment was like, my parents did this to me. And they tanked my credit score by the time I was 18 because they mismanaged money. And now it screwed me over. Okay. Here's a question. I probably shouldn't even get into this.

Wade in this water because i don't know but like i i have i have known two people not like really close friends but enough that they've like shared this with me that their that their identity was stolen from an aunt and uncle that raised them oh and the uncle took this right and i know that this is not stealing your identity but it is weird that you can put someone's name on the account. It's an authorized user. Yeah, but like, I don't know. It creates a whole bunch of future and potential problems. And on paper, she's going, well, yeah, if you do it perfectly, it could work out great for your kid.

But there's a much higher probability that you're going to hurt your kid financially 18 years from now. And that creates resentment. And they go, thanks, mom and dad. Oh, I would be pissed if I turned 18 and my parents were like, sorry, we tried to help you, but we got behind here and there. And now you got to dig yourself out of this hole with this credit score because you have a really bad one, even though you've done nothing to it. You didn't. Do you know how that's... It's frightening.

That is. And you talk about how to actually raise your kids when it comes to money in Smart Money Smart Kids. And there's a lot of simple things you can do that don't involve opening a credit card for a baby. What are we doing, America? I know. Oh, that's so scary.

I know. So we talk about it a lot on this show, but you can try to kind of like beat the system and figure out how to do this, that, that, and's so scary. I know. So we talk about it a lot on this show, but you can try to kind of like beat the system and figure out how to do this, that, that, and that to win. When it comes down to it, it is your behavior. What you choose to do with money is how you're going to win. And I think one of the gifts parents can give their kids is teach them how do you handle money and actually show them, hey, you have to work.

We're doing this with our kids are the two girls at least charles is he's three and he just probably will never i'll probably just give him money all the time he's not already invested in the market there's just something in my heart about charles i'll be like you can just stay with me forever but the girls were like okay you know you got to do you know caroline's five now so they're they are they're doing chores and they understand okay if i work here if i work and do this, this and this that we've very much communicated, then you get money.

And they're at the young age where now they're not saving up for anything. They're five and seven. So we get to go to Target or a toy store here in Nashville, you know, and they get to spend some of their money in a few weeks and they love it and it's great. And then as they get older, you start to teach them, okay, now that you know where money comes from, it comes from work. Now we're going to give, we're going to save, and we're going to

spend. Here are three things that you can do with money. And under our roof, you're going to practice these things. You're going to make mistakes and we're going to allow you to make mistakes. And that's great. You're going to get some victories and a little bit of this like dignity of, oh, wow, I did that. And you can start to see progress. It's that behavior that you want to instill with your kids because that's what gives them the dignity when they leave home at 18, that they get to go and win

because they have the knowledge. And that's my story. You know, people think that, some people do, I guess. Everyone's like, well, you know, you guys are good with money because your dad just gives you money. I'm like, you think Dave Ramsey

like sends me secret checks in the mail? That would be awesome. If he did, that would be great. He doesn't. But the gift that they gave us as kids is like understanding how to do this stuff at 18. And so thank God, you know, we were able to avoid debt and know how to budget, know how to save. And we're not perfect with money, but learning those basics, you get to start that at 18 which is a gift where a lot of people start you know 30s 40s 50s even 60s they're weighing the whole yeah because you know they they didn't know this stuff um but man that's the gift you want to give your kids not trying to like finagle this this debt playing industry and how to work it

and like no give them the knowledge and the experience. And that that's what will take them places. Absolutely. This is and so I covered the whole debunking all the credit score myths that she's talking about, we need a credit score to rent an apartment, you need a credit score. And it's just not true. And I'm just tired of us perpetuating these myths that cause people to go into debt, which by the way, is the only way to create a credit score and maintain one is to do that and pay it off perfectly. Every single factor has to do with debt. And the problem here is that it doesn't set your kid up for financial success. They can still be in a pile of debt when they graduate college because they have their great credit score. Right. So if you want to set them up, set up a 529 or an ESA when

they're born and do that for 18 years. Now that's right, that they can go to school and pay for it because of, yes, that's right. And help them start to do a budget and show them how to manage their money wisely as they get their first job and show them that not having debt sets you up. And as we see these new generations come up, I think we're going to see that where they go, oh gosh, they're stressed out because they have all these student loans. I don't want one of those. No, thank you. Well, there was a article that I read a few weeks ago and they talked about that even within Gen Z. A lot, there's like, you know, I mean, every generation I know has, you know, the good eggs and the bad eggs in the bunch, but how they're

interviewing a couple of them, they said, well, I'm watching my older siblings, millennials, graduate, you know, with, graduate with six figures of debt. They're stressed out because of what's going on when the COVID shutdown happened. They didn't have savings. And they're like, I don't want to be that. And so there is a little bit of that rebellion of whatever that system was that the millennials and the Gen Y and the boomers were trying to play. I don't want to do that. So learn.

That's great. We just did a whole episode on Smart Money Happy Hour called Scroll with Caution, How to Spat Bad Money Advice on Social Media. So go check that out wherever you listen to podcasts. Smart Money Happy Hour just released yesterday. And we do a lot of reacts to a lot of money advice out there. We do. Some hot takes and a lot of laughs.

Man. Yeah. Make sure to check that out. This is The Ramsey Show. One of the most common pieces of advice I give folks trying to get out of debt is to sell the car. But it's important to sell the smart way by using CarWiser. CarWiser is a completely free service that gets you offers from all the top online dealerships instantly. Just enter your vehicle information and boom, you're ready to pick up an offer and get paid. CarWiser saves you hours of time and hassle.

So go to CarWiser.com slash Ramsey. That's carwiser.com slash Ramsey. welcome back to the ramsey show i am rachel cruz co-hosting today with the one and only george camel wow there's a lot of george camels out there you're the one and only george the one and only well guys there's nothing I love more than spending Dave's money and giving it to you this time of year. No questions asked. And I still get to keep my job at the end of it. And that is exactly what happens with the Ramsey Christmas Cash Giveaway. It is back, and you could win one of our weekly $500 prizes or the grand prize $5,000.

Now, it's no Powerball, but you got a much better chance of winning this one than the Powerball. And you don't have to spend a dime. Think about what having that extra cash in your budget could do. You could buy a George Camel portrait to hang in your foyer. You like that, Rachel? Foyer. You could use it to buy Christmas gifts.

You could pay off your smallest debt and get started on that debt snowball. So if you want to enter this giveaway, just go to ramseysolutions.com slash giveaway. You can enter every single day to increase your chances of winning. No purchase necessary, but hey, sorry kids. If you're under 18, you cannot enter. Oh man. Hey, tell your parents to do it. That's great. Ramseysolutions.com slash giveaway. And we're just getting started with the cash giveaway. That's right. We go all out for Christmas. We're putting our best selling books and tools on sale for as low as 10 bucks. That's right. We go all out for Christmas. We're putting our best-selling books and tools on sale for as low as $10. That's right. We have somehow overcome inflation, Rachel. It's not the $11 sale. It's the $10 sale. So find the perfect gift for literally

everyone on your list, like Dave's book, Baby Steps Millionaires, Ken Coleman's book, From Paycheck to Purpose, Dr. John Deloney's Questions for Humans, Conversation Cards, all new to the $10 sale. And rachel if you go to the store right now you'll notice there's a new item in there oh merch we've never had this ramsey and it's here i've been waiting for it because i see like shirts on etsy that are terribly designed with our stuff on it i'm like oh we need to be we could do it better than that and what do you have george right now for all those watching on YouTube can see this. Live Like No One Else t-shirt.

It's very rock and roll. It is very cool. Sporting it with a denim jacket. And it's super soft and comfortable. And the detail is beautiful on it. We can just go like fashion blogger on it. Oh my gosh. But it is fun.

And so the team, they gave me one of these because I love free stuff. And so it's not free for you, America, but it's up there on the store. So if you want some merch, it's a great gift this Christmas for people who have been following the plan. Yeah. And you want to celebrate, and it's a great conversation starter at the grocery store. They're like, what does that mean? Like no one else. It's a great way to do that.

RamseySolutions.com. You can shop our biggest $10 sale yet and enter the cash giveaway. All right. Up next, we have David in Philadelphia. Hey, David. welcome to the show. Thanks, Rachel and George, for having me on. And, George, I want to start by saying I like free stuff too. But I've got an interesting situation here to get your opinion on.

My parents have had timeshares for over 40 years. And one of the sales pitches is you can pass it on to your kids. Well, do I have to take them? No. Can you turn down an inheritance? And for that matter, could they rewrite a will and give it to the salesman that sold it to them in the first place? Put it right back in their pocket.

Yeah, you definitely do not have to accept a timeshare. And the good news is it's not even an asset. And so it's not like you're inheriting an asset. You have a sense of ownership. That's what you're being sold with a timeshare. And it is not a gift. It is not even free. There are crazy, crazy costs, as you probably know, associated with timeshares.

And it goes up every year intentionally to make them more money and make you more broke and have you stuck at the same crappy rental that your parents had for 40 years. Sure. So is there a good way to get out of one for my mom at this point? She's looked into a couple of the services and some of the reviews we're seeing, people talk about that they're being told not to pay the maintenance fees and it's ruining their credit scores. Not that we're worried about credit scores, but it just seems like it's almost as bad of a thing

to get out of as it is to get into. Oh, it is. It feels almost impossible to get out of. So yeah, there are some companies that do it, but you want to be very specific on which ones because I think there's some terrible ones out there, but there are some that that do so I would I would look at uh really investigating those calling them um yeah I mean I guess you could look at the reviews too but finding a certified one that that actually has

progress and has testimonies of people that they yep they've helped but it it's a it's hard that's what sucks about timeshares. Once you get in them, it feels like nearly impossible to get out. It's not easy. And if you need convincing of this, go to eBay and go to sold and completed listings and search timeshare. And you will see timeshares being sold for 99 cents. And it's kind of like the quicksand on Gilligan's Island. You just can't get out of it. Exactly. So do not accept this under any circumstances. Just say no thanks, Tom Hanks, to your parents and say, I appreciate that. But this is an investment and I'm not prepared to take on this investment because there was a lot of fees associated with it.

And if it has to die with them, I'm okay with that. All right. Up next, we have Dave in LA, Los Angeles. Hey, Dave, welcome to the show. Hi, Rachel. Hey, George. Thank you for taking my call. I really appreciate it. Absolutely. How can we help?

So I just took a job offer that it was a 16K pay cut, and I'm kind of thinking whether or not I should talk to them again and tell them, Hey, like it's, um, I'm actually going to change my mind. Um, the only reason is because, um, I took the, the only reason I took the job was because it's actually my dream job. And, um, but the only thing that I'm thinking about now is that, uh, you know, I still have, you know, school debt and some credit card debt that I used, uh, for my master's degree. And, you know, now I'm trying to cash flow a wedding. So it kind of, you know, it was a little concerning, but I wanted to see what, you know, that advice that you guys could give was. And, you know, if staying in the job is a good idea or, you know, just moving forward will also be, you know, another option that I have

available, I guess. Yeah. Is your current situation job wise, is it, are you still in it? Have you quit that job? Is it a good environment to be in all of that if you decided not to take the new job? So, yeah, I'm really happy. Like, uh, it's a, it's a, it's a really high paying job. I'm really thankful. Um, it's just, you know, the opportunity that I had, you know, to accept an offer or, well, I did accept it, um, or, you know, the dream job,. Well, I did accept it for, you know, the dream job. You know, it was really just the fact that it was my dream job. You just jumped at it. Yeah.

Without really thinking. Yeah. I mean, you know, you feel terrible for the new employer. But honestly, for you, Dave, I mean, my priority is making sure that you're in a good situation. And since the current job you have, not the new and the current one, isn't bad, it's not like you're leaving because of a toxic work environment or something immoral was happening, then I would humbly say to the new job,

I'd be like, hey, I know I accepted this. And I mean, you didn't sign any contracts or anything, right, on a legal aspect with the new job? No, the only thing they did make me sign was the offer letter, but there was no obligation for me to come on board by a certain

date. They haven't given me a start date or anything. I'm still doing the whole pre-employment process, but there was no obligation for me to come on board and sign my life away. Is this dream job still going to be on board and you know start my life away okay is this dream job still going to be on the table two years from now um yes i guess another reason why i took the job was because um you know there's a lot more room for growth later on and that's kind of like where

uh logically or one was one reason why i took the job too, because, um, the differences in levels, they, they do vary by a lot more here at the new job that I'd be taking. So what's the, what's this new job pay compared to the current one? So my current job, um, I am making one 10 a year and then, uh, the new one is 94. Okay. And how quickly can you move that 94 salary up since you said that there is room to grow? Um, to grow um i'm guessing three years i also got a sign-on bonus i don't know if that that kind of you know pushed me over how much was it taking the job uh 20k 20k okay here's here's what i'm thinking what if we take this new job since it's the dream job i assume you're going to excel in it since it's the dream you're

going to grow faster than you think what if you take on a side job to cover the gap so that you can continue the debt snowball? And once you're there, you've started increasing your income, your debt is gone. Now you can easily continue in this job. So that's another option there instead of backing out of this whole thing. Yeah. Yeah. And especially since there's room for growth, Dave, and you had that $20,000 signing bonus, which is great because that kind of fills in the gap for at least a year, right? You can throw that at your dad. Yeah. And continue to move up. So I'm, yeah, I'm good if you take the new job, especially since you know that there's going to be a growth track and maybe you talk to them, go back even and say, hey, I kind of accepted this pretty quickly. Is there a

way to renegotiate maybe even my salary to bump it up a few thousand dollars just to help in the meantime as well? Just get a clear plan of what that growth looks like. Yep, absolutely. Thanks, Dave. Good luck and yeah, have fun with the new dream job. This is The Ramsey Show. අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි අපි our scripture of the day comes from proverbs 16 18 pride goes before destruction

and a haughty spirit comes before a fall. This quote is from Derek Zoolander. Oh, legendary philosopher. Do you ever think that maybe there's more to life than being really, really, really, really ridiculously good looking? That is one of my favorite quotes on the show so far. And I do wonder if there is more to life. I do often wonder that. Do you ever think? I was hoping you'd do the accent, the Zoolander accent. Now I can't do it. Can you? I can, but I'm not going to. Do it.

Do it, George. Read it. Read it. I don't know if I can do it. You can do it. Do you ever think that maybe there's more to life than being really, really ridiculously good looking? I don't know.

Something like that. There you go. I know how much you love fashion icons, Richard. How much I love fashion icons. Zoolander is one. Man, that was like a, that was a moment in our youth that it was like, it was a staple. It was a staple. Like Napoleon Dynamite.

Remember when that was like. That was one too, I know. It was like a brand. It was your whole personality. It was like The Office. The Office became people's personalities. Yes, yes. They spoke in office quotes. So good. The Office. The Office became people's personalities. Yes, yes. They spoke in office quotes.

So good. Good times. Friends used to be that, too. All right, up next, we have Titus in Kansas City. Hey, Titus, welcome to the show. Hey, thank you for having me on. Absolutely. How can we help?

Yeah, so I just started a clothing brand, and it's really made me come to the realization that, like like I need to get my finances straight because I'm 17 and I've been working for like three years and I have like no money. And I've tried to like budget, but I just can never like stick to it. How's the business going? Has it made money? Yeah, I just launched like a couple days ago, but it's starting to pick up and I'm making sales. So it's working out, but I just want to make sure that I can actually like sustain it and things like that. And I know that if I have bad money habits, it's just going to all go down the drain. I'm not going to know where it went. Well, good for you, Titus, as an entrepreneur.

Love a young entrepreneur. Are you in high school still? Are you working? What's going on? Oh, yeah. I'm a senior here right now. I'm graduating in May. Okay. Are you planning on going to college or trade school,

or are you going straight into entrepreneur life? I would love to just go into entrepreneur life, but I may just take some business courses or something like that for some networking. Yeah, I think that's wise to get some education in that space to propel you into this. So with this business, have you gone into debt for it? Because you're saying you're wanting to follow the baby steps. Where are you at financially?

Do you have money in the bank? Do you have debt? So I don't have any debt, but I'm a heavy spender, so I spend all my money basically when I get it. But I have a good work ethic, so I'll make money and I'll have a coming end, but then I just kind of spend it, even if it's for something like Chloe. I always have no money by the end of the month. You sound like me, Titus, at 17.

You sound like a 17-year-old. I bounced three checks, Titus, at Hollister when I was your age. Can you guys picture little Rachel Cruz writing a check at Hollister? I did. I did. If you gave them a check today, they would be so confused. They would be like, what is this? So, Titus, I think you have a little bit of that personality that if you –

I'm so thankful you're addressing it now because you you kind of have that personality and that and that grit that you can be one of those people that just out earns their stupidity for a while right you just make more money make more money and i can still kind of not be good good with money but i can out earn my stupidity is what ends up being um and so you kind of have that a little bit in you which isn't always bad because that means if you can fix one end of that equation and the other one is flourishing of actually making money and now earning you know or earning a ton you're going to be in a great position so i love that at 17 you're self-aware

enough to know this and start working on it because you don't have the life you know life in you know right now in the sense of bills and having to be in charge of food and rent and all that. So that's right. So I would ask yourself, Titus, you know, what's causing you to spend? One question I ask myself, because I know myself well, is if any, if nobody sees this purchase, do I still want it? Yeah. Yeah. I've asked myself that question too. I think a lot of it is just like, like obviously just my interest is like very like materialistic. So I feel like I just like spend a lot of money on things that I definitely don't need. But like recently after

I found your show, like I've just kind of been beating myself up over it the past couple months. And like, I just want to like get straight and know that i'm like really making progress so i can like really build wealth i don't want to just be like stupid with my hard-earned money yeah that's a great place to be but now we got to move forward instead of looking backwards beating ourself up yeah don't beat yourself up tyce you're fine you're 17 man you're okay and you said you don't have any debt right no no debt at all yeah you're it's okay don't yeah so don't be hard on yourself how much No, no debt at all. Yeah, it's okay. Don't, yeah. So. Don't be hard on yourself.

How much is the business making? Like where's this income coming from? Because you said you're spending it all. So I work for an entrepreneur academy and I work about 30 hours a week. And then I also have another job at a grocery store, which I get paid like $12 an hour. And I get like 15 hours wow while in school full-time using that so yeah are you homeschooled do you go to school are you homeschooled um yeah i have like half like virtual school and then half

like regular school so i'm able to work like extra hours. Okay. What a time to be alive. Yeah. So I just think, I think for you Titus, it's, it's just starting to put boundaries and limits on your spending. It doesn't mean you can't spend anything, but you want to be very, very diligent. So I would remove anything in your life that makes it easy to spend.

And I don't know if that's apps. I don't know if that's your Amazon prime account and you need to log out of it. If it's the people you're around, like removing those obstacles of where you just are tempted to spend, or if it's a place that you're like, I go here, right? Like the mall, Hollister. That was my place to be at 17. And just to have the discipline right now to say, I'm not doing that. And to have a dollar amount that you want to save every month, Titus, that again, isn't your whole paycheck

because you want to be able to give some of this money. I want you to practice being generous with some of it. And I want you to be able to spend some of it. But I also want a big savings goal to look at and start that same drive that you have towards these businesses. Make that a drive towards your saving. It's that same kind of spirit to say, I want to move forward in this and be creative and figure this out. And that's what you want to do with your money too. And so hitting that number is also a great way to goal set a realistic number.

And on the business side, the know, the baby steps don't apply to business in that sense. But what does apply is living completely debt free, running your business debt free, having a pile of money in savings and your reserves to cover new expense, a new hire, things coming down the road, an emergency. And so there are things that apply there. I'm going to gift you a few things. Number one is Rachel's book, Know Yourself, Know Your Money, because it's super important to have that self-awareness of, oh, this is why I am the way I am with money. How do I move forward knowing that? So I'm going to gift you that book as well as Dave's book, Entree Leadership. This is how he built this business from a card table in his living room to the empire it is today. And I'm

going to throw in one more that could be helpful for you. Our friend Christy Wright wrote a book called Business Boutique that really helps those super small business owners from this is a hobby, this is an idea. Now, how do I actually jump into the marketing? How do I price this really well so that it can grow and flourish? So I'm going to send you all three of those. And as you grow this business, let us know how it's going. I'm inspired by a 17 year old who's like, yeah, I'm going to do it my way and own this. And I would say too, Titus, at your age at 17, I think one of the best ways to use your time and your energy and well is investing in yourself. Meaning like, just learn from this. You know, this is a great business.

You don't have to, you know, don't make it like a, this may not be the thing that you take forever, right? But you're going to learn a lot of lessons in it, which I think is great. But the money that's coming off of the business is what's amazing that you're going to be able to use that because you have a transition coming up at 18 years old, depending on where you go and what you do, that can be very expensive. So having some money set aside will really, really help you, even if it's with tuition, if you're going to do even community college, anything, that's going to be able to help. And then on the other side, even through college, still continue to practice that saving because that's another big transition into life. So I wouldn't wring your hands.

Don't be freaking out. You're okay. You're doing great. And just getting those money habits, that's the best investment you can make on yourself. Absolutely. Hang on the line.

Jenna's going to give you those three books. We're going to ship them to you. Wishing you the best, man. Absolutely. George, great hour. Awesome time. Thanks for co-hosting.

Thanks to everyone in the booth letting the show run. Thank you, America, for listening. This is The Ramsey Show. Do you love a good day, Brandt? Want to see the latest Ramsey Show videos going viral? Check out your favorite moments from The Ramsey Show on YouTube. Go watch and subscribe to The Ramsey Show channel on YouTube.