The Ramsey Show - App - Talking About Money Doesn't Have to Be a Nightmare (Hour 2)

Episode Date: October 31, 2018

The show about you

Live from the headquarters of Ramsey Solutions, 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 am Dave Ramsey, your host. Thank you for joining us, America. We're glad you are here. Open phones at 888-825-5225. That's 888-825-5225. Peter starts off this hour in Gainesville, Florida.

Hi, Peter. How are you? I'm doing well, sir. How are you? Better than I deserve. What's up? Good. Thank you.

Hey, I'm mad that I got to follow up on all those millionaires that we're just calling in. But I just want to let you know I am an avid listener, and I can't believe I'm finding myself in this situation. A little background. A while back I was entering my apartment complex and found the gate shutting on my vehicle and cracked my windshield. I tried to collect from the complex for the damages caused to my vehicle,

and from there was contacted by them requesting $775 to pay for the gate that closed on my vehicle. Some back and forth conversation. I was ultimately refusing to pay them just because there was no indication that the gate was going to close, et cetera, et cetera. I thought everything was clear after I stopped hearing from them, and this past week I got a call from a collections agency. I'm just wondering if you have some advice for me.

Hire an attorney. What's that? Hire an attorney. What's that? Hire an attorney. So it's $775 worth of damages? Yep. Okay, what about, do you think that small claims court could be an option? Yep. But listen, I think if you hire an attorney for a couple hundred dollars

and they write them a letter, you may shut this whole thing down. I don't know that you'll have to go to small claims court okay and so i'm in i'm in conversation with the uh collections agency correct this has nothing to do with the apartment complex anymore oh yes it does they still own the debt and they're the ones that hired the collections agency i would sue i would sue the apartment complex okay Okay. So I am in college as well, just for some background as far as that goes. So you think my next step should be to talk to an attorney and be in contact with the apartment complex, and no way should I just write a check to this collections agency.

Well, if you think that the gate closed improperly and you weren't doing anything wrong and the stupid thing broke your car, they need to fix your car and not charge you for the gate right right that's what you're telling me and if that's the case um you know and a letter from an attorney may solve the whole thing but they're not scared of you obviously uh so we need to get someone that gets their attention because basically you're getting run down a corporate ladder here. This is probably a corporately owned or re-owned apartment complex. It's being quote unquote professionally managed. And so you're not dealing with a mom and pop.

You just got stuck in the vortex here. And the only way to jog that out is shock somebody. And so, yeah, I mean that you're going to write a check um you might as well decide which one you want to write do you want to write a check for a gate that broke that wasn't your fault or do you want to write a check for justice me i like a good fight i'm a hillbilly so i'd rather just fight i really would i mean i'll spend i'll spend a million dollars completely destroying something rather than spend ten dollars to keep from doing the wrong thing it just drives me bananas i can't stand it josh is with us in chicago hey josh how

are you hi dave i'm doing great how are you better than i deserve what's up um well my wife and i have been struggling for a few years to figure out how we should educate our kids. We'd love for them to be taught from a Christian perspective, but at the same time, we'd love to pay off our health. And so we're not sure what the best move is and if it's financially responsible to do one or the other. And I wanted to get your opinion. Well, I mean, typically a Christian school is a private school and is going to be more expensive and then the question you've got to say is if we go that route it pays off our home

in seven years if we go the other route it pays off our home in three years is it worth four more years or whatever the number is you just run your numbers out i just made those up okay but in other words it's going to delay the mortgage being paid off if you go the more expensive school route in order to get that world view which is fine and um now i will tell you having educated paid for the education for three kids that are now adults and having participated in this discussion a multitude of times with friends that are christians and and we are obviously too, that you need to be very careful if you're going to invest in a private Christian school

that they are actually implementing that belief system. There are some that have a Christian heritage that are no more matching with my value system than fly to the moon. They once had something that was Christian. And sometimes they're still holding themselves out as Christian schools, but the values that their tenured professors are bringing into the classroom have nothing to do with the values of my household. And so if I'm going to do that, if I'm going to be on enemy territory,

I might as well know that I'm on enemy territory instead of a wolf in sheep's clothing kind of thing. So if you're going to invest, make sure you're getting what you're attempting to get here. I'm not saying it can't be done. It can be done. There are great Christian schools that do a great job of a quality education with the quality value system. But you've just got to make sure. You can't just assume because such and such was a Baptist school or such and such was Presbyterian.

But that might have been 50 years ago, and, you know, they've got that in their heritage, but they're no more that than fly to the moon anymore. And so, you know, then you've just paid for an expensive school with a questionable quality. You know, so there. Now, the second part of the equation is this and this is not to challenge you it's just to help you with your critical thinking and you decide which one you want to do in the process my three kids and sharon and i all went to the university of tennessee a public state school which there is some bizarre stupid butt stuff that happens on

that campus okay i mean crazy and some of those professors are proof tenure should not be there you know i mean there is some nut burgers running around over there on my university's campus okay and i love university of tennessee but there's some stuff happening over there that just make your hair curl you know so my kids went there though but here's the thing we figured out our kids' spiritual walk was not based on what happened at school. It was based on what happened at home. Okay. And so our kids plugged into Young Life while they were in a public university setting,

and they already had their values and backbone and apologetics established because of how they were raised inside the Ramsey house. So they were equipped to go into that environment and not, quote, unquote, lose their salvation in the process. Now, I'm not saying no Ramsey kid ever did anything stupid. I can promise you Ramsey kids, Ramseys are pretty much known for having done something stupid at one time or another. But, you know, you can do that in a Christian school, too.

You know that, right? Right. Yeah, right off campus is a bar on every one of those. And so you can go get just as drunk at a Christian school as you can in a state school. So all that to say, there's no bubble that protects them like your home does. The preparation you give them at your kitchen table is their insurance policy it's their fire insurance policy it's not you know the name over the door of the school but that's not to say you should never do a christian school i think it's perfectly fine as long as you pay cash for it

and you're willing to say we're going to pay off the mortgage a little slower because of that i would investigate and make sure that the values are actually taught in the classroom. I put my kids in a private Christian school for two years when they were in elementary school, and I found out some of the teaching they were doing over there, and I'm like, well, this is useless. This is a complete waste of money because they're just as crazy as the mainstream. So I figured out it's going to be me that does this. This is the Dave Ramsey Show.

I get asked all the time, when in the baby steps is the right time to buy life insurance? My answer is typically now. Life insurance is not part of the baby steps because it's needed when your family has debt and not enough savings to provide for their financial needs. That's when they're at the highest risk. And no matter where you are in your baby steps, it's a necessity, not a choice. This includes working husbands and wives, as well as stay-at-home parents. It's pretty expensive to replace those stay-at-home parent responsibilities.

I only recommend term life insurance since it's the most affordable way to get the right amount of coverage and not break your budget. Go to Zander.com or call 800-356-4282. These are the guys I personally use. Term life insurance is inexpensive and your family needs this no matter where you are in your baby steps. That's Zander.com. Or call 800-356-4282. Zander.com. Thanks for joining us. I'm really glad you're here.

Open phones at 888-825-5225. You jump in. We'll talk about your life and your money. Our question of the day comes from Blinds.com. Find out for yourself why Blinds.com is the number one online retailer of custom window coverings. You'll get free samples, free shipping, and with the new promos they run every month, you'll save even more. Use the promo code RAMSY to get the best possible deal. Today's question is from Brenda in Colorado.

She comes to DaveRamsey.com and says, is dental insurance for my kiddos a gimmick or something I should keep paying? Dental insurance is one of the most easy insurances to figure out that they're charging you more than you're getting. We've had dental insurance proposed to us as an employee benefit several times, and it's really simple. When you add up what you pay for it in a year, you never spend that much on dentistry. It just doesn't work out.

It's one of those things you should self-insure through. Now, we do have an advertiser that is with us that is a dental discount company, and that is worth it because that helps you get discounts on your dental repairs, your dental work, and so forth. And, you know, you can check them out as well. You can find them on our website. One Dental is what it's called, One Dental. And James just helped me because I was looking at him.

My brain wasn't firing and I couldn't remember. They're great people, too. I've gotten to know them. One Dental. And it's a discount program for dental services. Now, that is worth it. But we've had dental insurance attempt to advertise here many times, and we just simply don't let them.

Christine is with us in Hartford, Connecticut. Hi, Christine. How are you? Hi, Dave. How are you? Hi, Dave. How are you? Better than I deserve. What's up?

Oh, my goodness. Long-time listener. I'm just so excited. Never called before. So my husband and I are debt-free, including our house. Way to go. Yes. Well, thank you for your teachings.

We've followed them all. And we are, actually, we are everyday millionaires. I'm a teacher, he's an electrician. And so we've been investing the way that you recommend. And, you know, just out of curiosity, we finally decided to meet with an ELP. We went online and found one that your site recommended. You mean a SmartVestor Pro for investing? Yes. Okay.

Yes, yes. SmartVestor Pro for investing? Yes. Okay. Yes, yes. SmartVestor Pro. Thank you. Okay. And we met with him, and he had a lot of information for us. And then the fee structure is like a percent, I guess. And so what my husband and I didn't know is since we've been investing the way that you teach, since we've been, you know, we both are blessed to have pensions, we have, you know, we're only in our 50s,

and we, in theory, we could retire in five years. We don't have to, but we could and be comfortable. Would it still make sense to hire a financial person for a year at, you know, whatever. I think it's like $5,000 for the year because they go on 0.5% of what you're... Okay, so they're proposing a managed account for you. Correct. Okay, yeah. A lot of the industry has gone to the managed account approach.

And so the question is, what do you get for your money? That's what you come down to. And anytime you're investing, and when I'm investing, by the way, my personal money is invested with one of our SmartVestor pros, okay? And so there's two ways to do investing in mutual funds. Upfront fees, that as you do the investment, they charge a fee, and then there's very low, almost no annual after that, or the managed account where it's a percentage of the balance every year.

And now what are you getting for that? Well, they're helping you select the funds and putting you in funds that are outperforming the market overall, you know, over a long period of time, over average, you know, funds that outperform the S&P. And, of course, you've got someone to meet with and cover anytime there's a question about anything. If there's a change in the market and you're worried about it or up or down, anything along those lines.

And there's tons of studies that say that you will come out ahead doing those two things. One is getting good advice and picking the proper funds, and two, you know, just not jumping off the ledge every time somebody comes on the news and freaks out. You're probably already not doing that one. No, but we listen. I mean, I listen to you every day. Okay, so you've kind of got that dialed in you're not going to jump off the roller coaster and get hurt you know so

that that part of stuff so you know the thing is just ask them to show you okay why are you worth what you're charging and uh you know because you're charging me a fee are you worth that uh and in most cases you'll find it is that you're going to make more than the cost of the fee in extra returns and certainly in services in terms of you know education that's available to you and you know there's 8 000 mutual funds to go through i don't keep up with 8 000 mutual funds i have a day job you know and so a you know, I don't want to do that. But those guys, that's all they do all day long is comb through those funds. It's their whole world. They eat, live and breathe that stuff. And it's I also don't work on my own car.

I could probably fix my car cheaper than the mechanic fixes it, but it would take me longer. There'd be several trial and errors along the way. I might break something in the process, and so it's worth it to me to get somebody to hook the computer up to the car that actually has the computer that hooks up to the car instead of me being a redneck laying under the hood trying to figure this out. And it's kind of like investments. I don't DIY those either.

I don't even do my own taxes, And I'm pretty good at this stuff. It's what I do. I'm a money guy. I've got a natural bent for math and all that kind of stuff. But I don't DIY when it gets down into the, you know, the dirty details, so to speak. So that's why I think you're going to find the investment that the managed account is worth it. But it's fair to ask them to show you. Okay, the the typical guy does this or you've been doing this over here but if you had been with us during that same period of time well here's what we would have had you and here's what

the mix is and it you know it would have made you one and a half percent more would it cost you a half a percent so you didn't edit a full one that kind of a thing um it's a fair question to say hey prove your worth and uh i don't think any smart investor pro that we have would tell you that they can't do that. They obviously all believe that they can. And then just ask them to show you. Good question. Alex is with us in Charlotte, North Carolina. Hi, Alex.

Welcome to the Dave Ramsey Show. Hey, Dave. How are you doing today? Better than I deserve, sir. Welcome to the Dave Ramsey Show. Hey, Dave. How are you doing today? Better than I deserve, sir. What's up? I've got a question. Maybe it's a better question for Ken Coleman, but it's about my career. I'm currently in

Baby Step 2, and I'm a welder. I work out of town and make around $140,000 a year. I've got opportunities to go work at home, but the pay is about a third of what I make working out of town. And I'm just curious if you thought it was crazy to take a job like that.

I'm not married yet. I'm getting married next month. So you're making $140 making 140 and you'd make like 50 yeah okay at home um but right now where are you where are you working out of town i'm in virginia right now but i work i've actually been all over the world with it but um you know my final goal was to be at home working, but right now there's no kind of retirement benefits or anything other than a decent salary. Okay.

Well, I think the answer for me would always be C, none of the above. I like the idea of coming off the road. I don't like the idea of a two-thirds pay cut, so I've got to figure out how can I come off the road and make more money. What have I got to do to make more money off the road i don't like the idea of a two-thirds pay cut so i got to figure out how can i come either how can i come off the road and make more money what have i got to do to make more money off the road or can i do some kind of a mix and say i'm going to be gone two weekends a month and um and go do just do some ot out on the road that way and pick up some serious change until but is there is there a path a career path at home whether it's owning your own shop or uh you know i don't know run running a different kind of a different way of

doing this rather than just saying a job at home versus a road job is there another way to do this and that's that's what i'm going to be the rocks i'm going to be turning over and looking for as to how to do that and um you know where do i want to be when i'm 40 what I'm going to be, the rocks I'm going to be turning over and looking for as to how to do that. And where do I want to be when I'm 40? I don't want to be on the road. You don't want to be on the road already. You told me that. Getting married. I don't blame you. I think it's a good idea to be home with a new wife. Hey, good question. I think you can figure it out, but it's a tough one. This is the Dave Ramsey Show. Are high health care costs getting you down?

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To learn more, visit chministries.org. That's chministries.org. Christian Healthcare Ministries is a proud sponsor of Dave Ramsey Live Events. chministries.org. Christian Healthcare Ministries is a proud sponsor of Dave Ramsey Live Events. chministries.org. In the lobby of Ramsey Solutions, Brian and Ursula from Houston, Texas are with us. Hey guys, how are you? Hey Dave. How's it going Dave?

Welcome all the way here to do a debt-free scream. That is correct. How much have you paid off? We paid off $129,002.56. Love it. How long did this take you? It took 45 months. 45 months.

And your range of income during that time? We started at $70,000 and went up to $172,000. Well, that's a nice raise. Explain the $100,000 increase in income. I just got through spending 33 months on an overseas assignment in Saudi Arabia. Oh, okay. As a contractor? Actually, my company operates over there in a joint venture.

Okay. All right. And then they pay big money for you to do that. Pretty much. Now, I will say some of that is employer-paid air tickets. So I got to come home on a quarterly basis, and the company covered that. So it counts as taxable income. Right.

It sure does. Okay. All right. Well, cool. Way to go, you guys. Thank you. What kind of debt was the $129,000? It was student loans.

It was 10 credit cards. It was two car payments. Wow. You were normal. We were normal. Just typical stuff. Man. So what happened?

That's about four years you've been working on this. What happened four years ago that gave you this wake-up call? Well, we're from South Carolina, so my church was having a financial planning class led by Joe Sangle at New Spring. So we just started following his principles initially. We used a budget app called Mint. So we started there. But then we got married, and we decided to combine our income. And I was writing all of our bills on the dry erase board, and all the squares were full.

So I was like, okay, I've had enough. So it's like God was like hey dave ramsey so i got online i googled you and i saw that everybody was like read the total money makeover so i was like we got to go right now buy that book we went to the book barnes and noble bookstore and they had one copy left so it was divine intervention there we go and then we just went from there i read that book that night and gave it to him oh yeah she read it in one night. Wow. I did. Look at you. Speed reading. It was on the couches that we used the Ashley

credit card. That's classic. I love it. Very good. So you said you're from South Carolina originally, but you've moved to Texas now. Yes, sir. Okay. Very cool. Good. Good for Very good. So you said you're from South Carolina originally, but you've moved to Texas now. Yes, sir. Okay, very cool. Good.

Good for you guys. Thank you. So what did you learn in the Total Money Makeover that made you be able to do this? What's the key to getting out of debt? The key is to not listen to what other people have to say about what you're doing in your own life. So we actually kept it a secret from our families. They didn't really know that we were trying to work hard to pay off debt. So we got a lot of advice.

We got a lot of, oh, you always need a credit card for an emergency, or you're always going to have a car payment, just typical, normal stuff. We tried to share a little bit of information with people because they were like, how did you get through this? They wouldn't listen. So we just mostly kept it to ourselves. So I'd say that's the secret is just mind your own business. Close your ears and put the blinders on and go forward.

That's true. You have to not care what other people think. That is a big... It's so hard to do, too. Because they mean well and they love you, but they're stupid. I mean, they do. Everybody's got family and friends that are that way. Well, it's just...

You can hear when their voice drops into that. Charlie Brown's teacher. Exactly. Wah, wah, wah, wah, wah. That's exactly it. Way to go, you guys. So the key is not listen to other people. What are the other keys to getting out of debt?

If I can be brief, the first thing is getting over, beating yourself up over the mess you've made. I mean, you've made the mess. Now it's time to clean it up. That's good. Number two, do your research. Find books, articles, watch videos. You know, find've made the mess. Now it's time to clean it up. That's good. Number two, do your research. Find books, articles, watch videos. Find that personal finance guru. Obviously, that was this for you.

After that, sit down and plan and budget. We're very competitive people, so it was always challenging ourselves to go along with that. For any married couples, teamwork. It works the same as compound interest. It's a very powerful thing. For the single folks out there working on their debt snowball, get an accountability partner. Hang around people that have those positive relationships and influence on you. After that, it's focus.

Because now, this day and age, we have social media, all these distractions. Life happened to us during the debt payoff, and it happened to us, you happened to us before then when we were in the dating phase and the engagement. For example, before we were married, she dealt with depression for several years. I dealt with the strings of unemployment. I had late rent notices on my door. My rent was only $485 at that time and I had three straight months of late rent notices. So it was tough times. And then even once we got into the debt snowball, or a little bit before that, whenever I got my job offer, I went through a grad program, and it was tough.

We did some things that were our fault. For example, we went and got two used cars. I have pictures of them. We had a bunch of car repairs. We got those cars right before we moved from South Carolina to Houston. So you talk about stupid on steroids. That's pretty much the illustration there. You kept piling it up, yeah.

That's correct. Before I even started the job, we had car repairs. We cash flowed her university for about two years during this time as well. Wow. So what are your degrees in? My degree is in public health and biology. And you did grad work, you said, in what? Yes, sir.

I'm in human resources. Okay. Very good. Excellent careers. Sharp couple. You guys are rock stars. Touchdown. You did it, man.

You did it. Wow. How's it feel? It feels great. The momentum is crazy because when things are going bad, it just compounds on top of one another. When it's going good, it's been very good. Since we've paid off the debt, we've been able to, we're pretty much making up for all the years we were broke. So we've upgraded our furniture.

Good. We're able to go out to eat at little expensive restaurants. Good. We're able to budget those, you know little expensive restaurants. Good. We're able to budget those car repairs. Good. My vehicle's in the shop right now, but I'm not worried because I'm not going to have a bill following me home. Absolutely. Or you can write a check and buy another one if you need to.

That is correct. Yeah, you're making good money, and you don't have a debt in the world. Congratulations, y'all. Thank you. You guys are amazing. Very, very well done. So proud of you. Thank you. So proud of you.

We've got a copy of Chris Hogan's book for you, Retire Inspired. That is the next chapter in your story for you guys to be not only debt-free, but now you're well on your way to being millionaires. As you said, the momentum will carry you there before you know it, and outrageously generous as you go along. Well done, guys. Thank you. So now you can tell all the family and friends.

Yes. Na, na, na, na, na. I'm going to share it on Facebook as soon as you upload it, and I'm going to tag them. Now, I will say, we did, when we have a younger relative that may graduate high school or college, we try to, you know, get them by themselves and try to teach them, like, please don't borrow money. If you need to, go to a technical college for two years and transfer to a four-year school. Please don't go get a car payment.

It's just all that type of stuff. We even went to the point where we go online and order the total money makeover and send it directly to their house. And they open their mailbox, and there's a gift. Well, thank you. Thank you. Well done. Who was your biggest cheerleader? I know you kept it mainly to yourself.

I have to say my mother. I have her work ethics instilled in me like through and through. It's like when I was growing up, she dealt with some unemployment. Once her job had ended, they shut the facility down. And it about drove her crazy just, you know, not having anything to do on a daily basis. And I felt that when I was unemployed as well like you just you have to be doing something and like she just grinds it out and been doing it my whole life so yeah there was there was somebody to look up to during this time yeah that's your hero yeah well done good stuff brian and ursula houston texas $129,000 paid off in 45 months, making $70,000 to $172,000.

Count it down. Let's hear a debt-free scream. Three, two, one. We're debt-free! Love it! Well done, you guys. Very well done. Well, that's how you do it hard work he gave the seminar didn't he just gave the whole thing he's laid it all out work with your spouse you know the number of

times we find someone that became debt-free in spite of their spouse is almost zero. The two of you sitting down and agreeing, we're going to do this, is everything. Well, I can't get my spouse to sit down. Well, then you don't have a money problem, you have a marriage problem. Because if you have something that means a lot to you, like everything to you, like your future, your kid's future,

and you can't get your spouse to sit down and talk to you about that, that is not a money problem. That's a relationship problem. Hello. Got to get on the same page. Those guys killed it, man. What a great couple. This is the Dave Ramsey Show. We'll see you next time. Sarah is in Austin, Texas.

Sarah, I see on my screen you two are debt-free. Congratulations. Hi, Dave. Thank you so, so much. Feels fantastic. Cool. How much have you paid off? I have paid off $23,151 in eight months.

Great job. And range of income during that eight months? I went from $50,000 up to $55,000, and now I'm up around $75,000. Wow. Why did your income go up so much? You know, just, I think, increased motivation, more work coming my way. So it's made for a lot of great things happening. Cool. What do you do for a living?

I'm actually self-employed doing corporate training. Okay. Excellent. Very cool. Good for you. What kind of debt was the $23,000? So $13,000 of it was in grad school loans, $2,500 was in a car loan, and about $8,000 in various credit card debts. Okay.

How old are you? I'm 31. Okay, cool. Very good. Yeah. So what happened eight months ago that said, okay, I'm 31. Okay, cool. Very good. Yeah. So what happened eight months ago that said, okay, I'm 30 years old. I'm going to get out of debt. Well, a couple things.

My first wake-up call was when I actually took the time to add up all my debt. If you were to have asked me how much debt I had before I got started, it would have been a much lower figure. So just seeing all the numbers added up in front of me as they actually were terrified me. Another wake up call was when I got my 1099 form and seeing that my income was actually so much higher than I thought it was. So that of course got me wondering what the heck I was doing with all my money. And lastly, um, and actually a fun one. I'm in a wonderful relationship with someone who's debt free. Now we're engaged. But at the time I knew we were headed in the direction of marriage and that I just didn't want to bring

this baggage with me. So not long after I heard your name mentioned in a workshop, I did a Google search, found the total money makeover, read it in a day, followed the plan, and here I am. Wow. Look at that. Yeah. So positive influence of the fiancé. And then you go, well, I've got to add all this up. And then you went, okay, I've got to Google.

So I've got to find somebody. And there I was in Google. Well, good for you. Way to go. And my gosh, Dave, like you always was in Google. Well, good for you. Way to go. Yeah, and my gosh, Dave, like you always say, you know, you'll feel like you got a raise, and definitely do. Life is so much more fun now. Yeah.

What do you tell people the key to getting out of debt is? For me, I think just remembering how fast time flies by and how in a blink of an eye you'll wake up it'll be two years from now and you can either be in your exact same position or a completely different one so from a tactical from a tactical standpoint from a tactical standpoint what did you do what were the activities you engaged in? Well, I had never done a budget before, so making a budget, sticking to it, and I had to look at my numbers often. So aside from every dollar, I had a little spreadsheet of all my progress

and my little projections, and that's something that, you know, looking at it every single day reinforced my why and how great this will all be when I'm done. Yeah. Well, as a trainer, you're already teaching goal setting, I bet. Yeah. And so just doing that for yourself, that's what that was. It was the incremental goal achievement that kept you going. That's perfect.

Well done. Exactly. Well done. Well done. Excellent. So I think I know who your biggest cheerleader was, but I should ask. Yes, you got it right. It was my fiance, Mike.

Okay. Way to go, Mike. All right. Very cool. Good stuff. Very good stuff. Well, congratulations. Very, very proud of you.

Thank you. We got a copy of Chris Hogan's book, Retire Inspired, for you. That is the next step in your journey the next chapter in your journey for you to be millionaires now and you're both well on your way to doing that and uh two smart people getting married this is good stuff when are you guys getting married march 9th of next year all All right. Coming up fast. Yeah. Good for you. Well done. All right. It's Sarah in Austin, Texas.

$23,000 paid off in eight months, making $50,000 to $55,000 to $75,000. Count it down, and let's hear a debt-free scream. Three, two, one. I'm debt free! Excellent! Woo! That's how you do it right there. Well done, well done, well done.

Oh, man. Well done. If you didn't know, at Facebook.com slash Dave Ramsey, we have our own private Facebook community that Ramsey followers jump in, financial peace followers jump in. It's called the Ramsey Baby Steps community. The Ramsey Baby Steps community. We'll let you join if you want. Jump over there on Facebook.

Lots of interaction. Over 100,000 folks in there talking all the time. let you join if you want jump over there on facebook lots of interaction uh over a hundred thousand folks in there talking all the time uh should we heather says take out out from that community take out our retirement to pay off our car we'd still have some left we're 31 years old no we never cash out retirement to pay off a debt unless it's to avoid a bankruptcy or a foreclosure you're not facing either one of those or you would have mentioned it you just want your car paid off here's the problem you pull money out of a 401k they charge you a 10 penalty plus your tax rate so if you're in a 22

tax bracket as an example in the year 2018 that would be a 32% hit on your money. So, Heather, that's the equivalent of saying, Dave, I want to borrow money at 32% interest to pay off my car. And the answer would be, no, that's stupid. And so don't cash out retirement. No, that's stupid. Don't do that unless it's just unless your back's against the wall and you can't breathe, which case maybe you need to sell the car, actually, if that were the case. Still not cash out the retirement.

But if you're looking down the lens of some kind of a horrible financial situation, that would be the only time I would use some retirement, considering how hard the government punches you in the face for doing this. Christopher is in Los Angeles. Hi, Christopher. Welcome to the Dave Ramsey Show. Hey, Dave. How's life? Better than I deserve, sir. How about you? Just the same, sir. Thank you. Well, I'm a 21-year-old graduating in May with a business

degree with no debt of any kind, thanks to you and this show. Way to go, dude. Proud of you. Thank you, sir. Step three coming up. But right now, I'm planning on relocating to go, dude. Proud of you. Thank you, sir. Step three coming up. But right now I'm planning on relocating to Boulder, Colorado, because of its stats on unemployment and the outdoor recreation opportunities available. But my questions to you are, what skills should I develop to become as valuable in the marketplace as possible? And then the second question is, what resources should I use, given that I'm relocating to Colorado and I'm interested in financial advising? Okay.

Financial advising might take you a little while coming straight out of school. You know, there's not a lot of people going to want to sit at the desk with a 21-year-old telling them how to put their money aside, just to be very blunt. I mean, you could be an actual, you could be a bonafide genius, and you'd still have that trouble because people just looking for a little different thing. But there's a way, there's a process to work into that, and there's a lot of things around that industry you could do as well that would lead you in that my friend ken coleman our ramsey personality that does a show on xm on career says

use the proximity principle he calls it meaning get in the proximity of what you want to do and it will lead you towards doing that so that you know by the time you're 25 26 you're in there rocking and rolling and you know really doing that but in in the meantime what you're 25, 26, you're in there rocking and rolling and, you know, really doing that. But in the meantime, what you're doing is you just get in the business, around the business and that kind of a thing. So the way to do that is just start contacting some of those companies and go, hey, I want to come in there and make copies and help you with your database. And I want to use, you know, I want to help you with analysis and anything I can do to get my foot in the door, and I'm going to make myself so valuable that you can't afford to think about getting rid of me.

And just start getting in and doing that. Jump on Ken's website. He has a great system there on how to put together a resume that actually works, and it works as you get in contact with people, not just sending out blind resumes. But check him out at thekencolemanshow.com, thekencolemanshow.com, and it'll help you. Lastly, it doesn't hurt to physically visit the location, meaning go spend some time in Boulder and just walk around and talk to people and get to know people and get your foot in the door that way.

So, good question. This is The Dave Ramsey Show. Hey, it's Kelly, Dave's phone screener. We finished 2017 with a bang as the fourth most downloaded podcast of the year. Thanks to all of you for listening and helping us spread the word.