The Ramsey Show - App - The First Ever Debt-Free Scream From New Zealand! (Hour 3)

Episode Date: July 2, 2019

Take control of your money once and for all. The Dave Ramsey Show offers up straight talk on life and money. Millions listen in as callers from all walks of life learn how to get out of debt and start building for the future. Check out the fifth most downloaded podcast of 2018!   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 

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Music Music Music Music 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. Thank you for joining us. Open phones at 888-825-5225, 888-825-5225. Well, for the past 17 years, a building that we lovingly call Financial Peace Plaza has served as our company headquarters in the home of the Dave Ramsey Show. It's where I'm sitting right now. Our studio is broadcast on the glass end of the lobby. So folks stop by the lobby and visit our coffee shop that was lovingly named Martha's Place.

After the original lady who staffed and manned and helped me create the idea of homemade cookies for our visitors. And you get the smell of Mama's Kitchen when you walk in. And fresh coffee, and you get the smell of that when you walk in. And so that's where we are today. This place has been special. It's special because of you, our fans. We love when you drop by to watch the show and there's always a few folks sometimes there's 100 and sometimes there's 25 sometimes

there's nobody but most of the time there's somebody sitting out here watching the show which i really don't understand it's kind of like watching ugly paint drive but anyway you're watching a radio show but anyway so we're here and we're glad you're here and we appreciate you coming by. And that's why we always have these fresh coffee pots going and the homemade cookies going and all that stuff. And we love the debt-free screams from our lobby. In 17 years, our Ramsey Solutions team has grown from about 56 people when we moved into the building. And now we're right at 900.

That's kind of crazy. And, of course, we're busting at the seams. We're in several other buildings around the neighborhood now and trucking back and forth and shuttling back and forth for meetings. It's really inefficient. And so we've built a new building that we're moving to. And over the next few weeks, we're going to be a staged move and um big studio debt free scream has a has its own stage now in the lobby so you'll stand on a little stage there it's going to be very very cool uh the lobby's going to include a whole bunch of history on us and on you guys and the stuff you've done and you know when financial peace started and financial peace university started all the books and that kind of stuff it's going to be a real

treat to visit this lobby and the bookstore of course is expanded and the kitchen is expanded and all of those things so you know the eats and the stuff will be there there'll be a full interactive tour um the larger cafe the bigger studio We've actually got two studios on the glass, one about the size of this one and then another one about twice this size. And so, you know, like the Ken Coleman show and some of the other shows will be broadcast on the studio glass as well now. And so that's going to be a lot of fun. So July the 8th, this coming Monday, will be the last day to visit our current building.

Don't worry. We're opening the doors for the new headquarters in August. Probably about August 15th you can start coming, maybe even a little sooner. And we'd love for you to stop by and see us. And if you want to come and you want to know the information, you need a map and all that kind of stuff, we're kind of moving several exits down out into the edge of the growth rings. And so we're kind of out in the middle of a field. So I'm not even sure it'll show up on Google Maps right now because it's all a brand new road we put in and all this stuff.

And we bought like 50 acres back in the corner of this thing. So for a campus, it's a full campus that we're laying out. And the first building is in, and that's what we're moving into. So you can learn all about it at DaveRamsey.com slash visit. But certainly from, you know, middle of August on, make sure when you're coming to Nashville to put us as a destination. We never thought that this would be a destination. We thought folks just might drop by, might have a cup of coffee, might want to get their book signed, or the picture taken at the break, which i always come out at the commercial breaks and

talk to folks when i'm sitting here doing the show and get my picture made with them and if they want it and sign their book if they want it and that kind of stuff and uh folks just sit here and you know participate with us and we just we love getting to meet you guys and hear your stories a lot of people walk up and kind of whisper, hey, Dave, I'm an everyday millionaire. Or, Dave, we just paid off our house. Or they're here to do their full-on debt-free scream in front of all of you guys. And they're going to be on YouTube, and they're going to be on everything else. So it's fun to get to meet you guys, and we appreciate it.

And the Ramsey Personalities, their new offices will be right next to the lobby, so they can come out and visit you guys, too, periodically during the show and other times. And when they're in town and back there working on stuff, they'll take breaks and come out and meet folks. And so it's just going to be a real interactive thing with you guys because we understand that this organization exists for those that are not on our team. It exists for you. And we are blessed around here that we might be a blessing to you. And that's how this thing has grown. That's what's happened here.

And that's how Entree Leadership and Financial Peace and all the different brands around here have, you know, the Chris Hogan's and the Anthony O'Neill's and the Rachel Cruz's and the Ken Coleman's and the Christy Wright here have you know the chris hogan's and the anthony o'neill's and the rachel cruz's and the ken coleman's and the christy wright's have all exploded is because they're they're out there helping you live your life better and that's what this whole place is about so make sure you come by and visit us at the new place but um you know this coming monday we're about to tear the crud out of this lobby, taking this stuff out of here and start to move it down there. So we're shutting the place down. That's what we're saying. And, you know, we've got a bookstore to move. We've got coffee shops to move and all that kind of stuff. The moving will begin. It will commence, baby. There's already stuff starting to disappear around the building early just because we're trying to get set up down there. And it just

takes a while to move 1,000 people. You know, it just is a big deal. So anyway, something I've never done. I've never been around something like this. So it's kind of interesting to me to watch all of our team build the logistics and the plans out for the technology move and all the new stuff that's exciting stuff. I was down there looking at some of it this morning, and it's going to be pretty cool. So be sure and put us down as a place you want to visit when you come to the Nashville area.

We're in Franklin, Tennessee, which is an absolutely wonderful Civil War-era town, classic southern square. It's a beautiful, very picturesque area. And so make sure you just come to Williamson County, south of Nashville, about 15, 20 minutes, depending on traffic. And you can find us down if you're coming to Nashville and visit and all that. We'd love to have you come out and spend a little time with us. That's why we built parts of this building.

Obviously, we're going to operate in it. We're going to do our business in it. But there's a whole 25,000-square-foot section here that's just for you guys interaction with you and uh we want you to you know we want you to well come down and see we want to show you our new house you know and give you a cookie and give you some coffee and that kind of stuff so come hang out with us and make plans when you're in nashville It's amazing that you can eat an elephant if you just do it a bite at a time. 30 years, just under 30 years I've been on the air.

A little bit at a time. 56 people when we started here, almost 900 now. A little bit at a time. You work your butt off for 30 years, you're an overnight success, you know. This is the news, guys. You need to stop and listen.

The Fed decided not to raise interest rates. That means you've got a small window of time before rates rise again. Here's the deal. Most people are paying too much interest on their largest expense, their home. So you're freaking crazy if you don't take 10 minutes to call Churchill Mortgage right now and see if they can save you money before rates rise again. A mortgage through Churchill could save you thousands, or better yet, reduce the time until you're debt-free. Can you imagine how it would feel to no longer have that payment looming over your head every month?

Just go to ChurchillMortgage.com or call 888-LOAN-200. Their team of experts will give you more clarity about your options and more peace, knowing you're saving significant money in the long run. Call 888-LOAN-200. That's 888-562-6200 or churchillmortgage.com. Lucas is in Shreveport. Welcome to the Dave Ramsey Show, Lucas. Hey, thanks for taking my call. Sure, what's up?

So, my wife and I are moving to Houston. I got a job offer to move there. Great. I'm a current employer, and we own our mobile home that we're living in right now here near Shreveport. And we're buying a house in Houston. We're in the process of it. And I want to know what you would recommend on either selling it, which is what I'm leaning towards, renting it, rent to own, owner finance. I'm having a problem with finding a buyer,

but I have plenty of people that are wanting to do owner finance and plenty of people are wanting to rent it out. The problem is I would be living four hours away from the rental property. Yeah, I would take less money and get cash. Okay. In other words, what do you think it's worth? What do you think you can sell it for? I estimate it at $27,000.

It's a 2016 model, so it's about three years old now. And it doesn't have any land with it, right? No, it's in a mobile home park. Gotcha. Okay. So $27,000 is what you've estimated it. And you've had it up for sale for how long and for how much? I've had it up for sale for $27,000 for two weeks now.

Okay. Well, that's not a long time to start with. But so here's the thing. Let's just use that as an example. I'm going to let it sit there at some price for a long time before I put renters in it or before I – it's paid for, right? Yeah, it's paid for. Okay.'s paid for okay so here's the thing i would rather here's an example i would rather have 19 000 in cash than i would 27 000 on payments okay well i have someone wanting to buy it for $20,000. Sell it to them.

Really? Yep. What do you make at your job? What's your household income? Household income would be $70,000 a year. My wife is looking for a job. She just finished school. We're completely debt-free. We don't owe anything on nothing. She'll be looking for a job in Houston.

Probably estimated household income would be $100,000. Yeah. $7,000 doesn't change your life. Screwing around with a mobile home three and a half hours away will change your life. Does that make sense? Yeah, that makes sense. You know, i would take i'd take that 20 000 bucks i'd close it and i'd be loading up the truck and heading to houston man would you throw it in because i got i'm putting 10 down on my house would you just throw that into the mortgage yeah you got that much more to

put down i'm assuming you're debt-free have your emergency fund right yeah we have three months emergency fund okay and um and you're debt-free yeah yeah i just increase your yeah that's great put another 20 000 bucks down on your house that's awesome listen here's what you've got you've got an emotional cleanliness to this your life just got really simple didn't it yeah yeah and it's just there's there's a financial advantage to not having six thousand things going around like a beehive swirling around your head. You end up making more. You end up making better decisions on your next house. You end up all of these things, right?

And so you get to put $20,000 more on the home. Life is good, man. Sell that puppy. Be done with it. Okay. Thanks for the call. Open phones at 888-825-5225 carter's in grand rapids hey carter welcome to the dave ramsey show hi mr ramsey it's an honor to speak to you you too what's up um so i just finished uh baby step 3 not too long ago.

Now I'm kind of looking around at my job and just general situation and trying to see what my next goal is. My job is okay in terms of money, but it's not something I want to do for a long time. So I'm trying to figure out if I should save up the money to go back to school to do what I want to do, or if I should continue with the Dave Ramsey plan for a little while longer. I'm just trying to get your thoughts. Well, you're out of debt, and you're going to have your emergency fund soon, right? My emergency fund is done.

Okay, so you're ready to go. Yeah, you're at baby step four. That's what you're saying. And so what are you going to study in school? Well, I had started to study mechanical engineering a few years ago and ended up stopping going to school to work full time. So I got back onto my school's website and kind of discovered that if I was to go back to school, I would actually be closer to a physics degree than a mechanical engineering degree. The goal is not to get a degree.

The goal is to get a degree in a field that you want to work in. Well, yes, generally speaking, but what I would like to do is to be an airline pilot. And to be a pilot for any major airlines, you just need to have a degree. It doesn't matter too much what it is. I mean, obviously, it's better if you have it in, like, aeronautical engineering or a related field. Yeah. So how far off are you for having a degree? How will your credits apply?

What's the difference between getting a physics degree time-wise and getting an aeronautics degree? About a year's worth of full-time classes, I would think. Okay. And so you can get a physics degree in what period of time? If I went to school full-time, it would be about a year to a year and a half, I think. It would take you two to two and a half years to get an aeronautics degree. Correct. And you're how old? I'm 27. And are you single? Correct. So while you're in school, how are you going to eat and how are you going to pay for school? Well, I mean, I have my current job would be willing to work with me with my class schedule if I ask them.

Okay, so you can keep working and go to school full time? Possibly. Okay, because you've got to eat and to school full-time. Possibly. Okay, because you've got to eat and you've got to pay for school, right? Correct. Okay. So I've got to have money to do that, and I'm guessing work is where that money comes from. Right. And I would have to ask my employer, because a couple years ago when I was still going to school,

there was a tuition reimbursement program at my company. So I would need to see if they're still willing to work with me towards a physics degree rather than an engineering degree. So you work for an engineering firm? I work for a cool and dye shop. Okay. So they would have an interest in you having a mechanical engineering degree, but an aeronautics degree would not be appealing to them? No. Yeah, okay. All right, that makes sense. So what you've got to do is just kind of think this through. You're 27.

What path gets you to where you want to be at 37 the easiest? That's the reason I'm asking these questions. And it's not necessarily a physics degree. It could be an aeronautics degree. It could be a mechanical engineering degree, and then you go make a bunch of money in mechanical engineering while you get your pilot's license and get your hours,

because you're going to need hours. Yeah. And that costs money unless somebody's paying for it. Right. A lot of money right a lot of money a lot of money so if you're a mechanical engineer you'd be making twice what you're making now might help you move on in so what gets you where you want to be in 10 years the easiest and the most likely and pays for it so you don't call me back two hundred thousand dollars in debt trying to live your dream. This is the Dave Ramsey Show. Thank you. From New Zealand, Paul and Brady are on the line. Hey, guys, how are you?

Hi, Dave. It's a dream to, how are you? Hi, Dave. It's a dream to talk to you. Kia ora, Dave. Honored to speak to you guys. I don't think we've had a New Zealand debt-free scream before. We've had a couple of Aussies on, but the first New Zealand guys. Hey, cool. Debt-free, huh?

Yep, you bet. So what time of day? We're proud to be the first Kiwis. What time of day is it in Kiwiland? It's about half past eight on Wednesday morning. Well, we'll see you in a few hours then. All right, so how much debt have you guys paid off? We've paid off $380,402 US in just over 39 months, Dave. Wow, good for you.

And your range of income during that time? $87,000 to up to around $107,000 US. Very cool. What do you guys do for a living? I'm a legal executor. And I'm a painting instructor at a correctional facility ah very cool good what kind of debt was the 380 000 uh it was actually two mortgages uh one on our home and one on a rental property and uh a credit card oh so you paid off the house and

everything i'm talking to weird people. Yes, you are. You're right. So how many people in New Zealand pay off their home at your age? Oh, probably it's a pretty weird thing to do, to be honest. Yeah, you're definitely weirdos. I love it. Congratulations. What's this house worth?

We're sitting probably about $900,000 now, New Zealand dollars. Oh, we've got a picture of it popping up on youtube it's a beautiful home oh good yeah yeah no we built that about 15 years ago wow it's beautiful congratulations well done okay so now i gotta know how in the world do you guys in new zealand find out about a hillbilly named dave ramsey and you start working about getting out of that well that was actually me, Dave. We sort of began our journey about three and a half years ago when I lost my beautiful sister Kim to cancer, and she was only 48 years old, but she did teach me all about standing in your truth

and being grateful for the simple life. I had a few harsh lessons along the way after that when I purchased some art with my Visa card, and Mr. Frugal was less than pleased, to say the least. So Paul has a nickname, Mr. Frugal. He does, he does. I like it. I think everyone in the world knows now, Dave.

That's okay, it's good. Only 16 million people, he does. I like it. I think everyone in the world knows now, Dave. That's okay, it's good. Only 16 million people, not everybody. And then one night we went to the movies to see The Big Short. As you may know, that's all about the housing market crash, and obviously our home is our safe place. So we ended up staying up until the wee hours of the morning talking all about our finances and realized we weren't even paying $1 of debt because we were on a fixed interest-only mortgage.

So that was the final straw, really, for me. And I Googled how to be debt-free, and guess whose name popped up. I can't imagine. Yeah, that's amazing. Wow. I have never heard of the big short actually inspiring someone to get out of debt. But if you watch that movie and understood it, it should inspire you to get out of debt. It should.

But that's a good takeaway from that movie. It's a cool movie. And it's fairly accurate as movies go anyway. But it pretty much outlines what did go down. So very interesting. Very cool, guys. So then you go on a journey that's all, what, three years and three months long, and you're, like, living on nothing.

Mr. Frugal's loving that. Yeah, he's loving it. He's happy as. I think he's been the happiest he's been in three years. Especially when she cut up the credit card, Dave. Oh, man. So now, Paul, you know the problem with this is you live like no one else. Now, you've got to live like no one else. Now you've got to enjoy some of this money. Can you do that? I think

we will because we've already booked our first cruise for the end of the year, Dave. Very cool. Where are you going? We're just having a taster cruise first. It's only just around New Zealand initially, but we've got all of the world and Europe and all around the place to go yet. So, yeah, the opportunities are just endless now. It's kind of amazing that's fun well congratulations yeah i mean you're making a hundred thousand bucks us and you got zero payments life is good on your world man i'm so proud of y'all congratulations thank you did anyone in your world understand what you were doing i mean when you said dave

ramsey they didn't even know what that meant right no they didn't but they soon did get sick of hearing about your name good i've got my own little advertising campaign going in new zealand it's named paul and brady i like it well congratulations we're very proud of you guys and we're honored to have our first new zealand-free screen be you guys. Very good stuff. We're super proud to be the first Kiwis on your show, Dave, and just to be pioneers for this thing in this part of the world. We're just kind of spreading the word and trying to help people out as much as we can. So we've kind of got the bug, and we're all over it.

Well, thank you, sir. Thank you very much. We're going to send you a copy of Chris Hogan's book, Everyday Millionaires, because you're definitely on your way to doing that, and for sure you've gotten yourself stabilized. And, man, when you've got a paid-for house, it just changes your perspective on everything. Congratulations. Thanks for that. Take care.

Take care. Paul and Brady, New Zealand, 39 months to pay off their house, their rental house, everything, $380,000, making 87 to 107. Count it down. Let's hear a debt-free scream. Three, two, one. We're debt-free, baby! I'm going on cruise. This is what you're supposed to do right here, man.

I love it. Very, very cool. Well, the Internet is magical. It allows you to go around the world and never leave home. So we don't know what percentage. I guess we do. I haven't looked at the Google Analytics or the iTunes Analytics, either one, on our podcasting. But we know we've got right at 7 million of you listening to the Dave Ramsey Show on podcast,

about 10 million of you listening on the regular radio, on our 604 radio stations. But I don't know out of that 7 million how many are actually overseas. You do know? 20%? No way. That high? Huh. Okay.

I've got to see those numbers. I wouldn't have guessed that. I would have guessed maybe 10, but wow. So that's a ton, a ton of you out there. You know, some of that may be military, U.S. military overseas picking us up too. I don't know. I have no idea who you are. We're glad you're there, though.

And we appreciate you wherever you are. And we're glad we can help. It's what we want to do. So thanks for hanging out. Open phones at 888-825-5225. You jump in. We'll talk about your life and your money. Claudia is on Facebook.

Dave, I've got a current policy 20-year level term with american general i've had it for seven years would would you what would you suggest me look out for um i would just go to zanderinsurance.com and pull up a 15-year or a 20-year level term currently and get a price just see how that compares to the american general policy i've not found american general to be outrageously expensive, but I've never found them to be the cheapest. So there may be some rare instances where they are. And there's no difference in quality in life insurance. Term life insurance does one thing.

Writes your beneficiary a check when you die. They either do that or they don't do that. That's the only quality there is. There's no gradient in between. Your beneficiary either got the money or they didn't got the money. And so if you have a reputable company that you know your beneficiary is going to get the money, you go with the cheaper one. As long as it doesn't take eight years to get the application through and they don't make you jump through a bunch of hoops.

You save $3 a month or pay $3 a month more and not have to go through a bunch of crap. That might be worth it. But generally, in general, I think you can beat American General. Go to Zander Insurance and check it out. This is the Dave Ramsey Show. Our scripture of the day, Philippians 3, 13 and 14. But one thing I do, forgetting what is behind and straining toward what is ahead, I press on toward the goal to win the prize for which God has called me heavenward in Christ Jesus.

My friend Dr. Henry Cloud says, leaders who seek power and control end up losing both. Well, that's how it works. Well, did you know that you can find the ramsey network anywhere you watch or listen to your favorite shows you can check us out on youtube we have an incredible presence there from all of our ramsey personalities as well as this show is broadcast live on youtube every day completely free for you you can listen to us on your favorite podcast app we were talking about that a few minutes ago there's about seven million of you do that. You can tune into the Ramsey Network. A bunch of our shows are right together on Sirius XM. You can download the Ramsey Show app. And

this is life-changing content. The Chris Hogan Show talks about being an everyday millionaire. Ken Coleman talks about pursuing your passions and landing your dream job your career track in our business boutique show christy wright equips women to turn their passions into profits rachel cruz show very popular on youtube and now in podcast form will teach you how to take control of your money create the life you love our entree leadership podcast has been one of the top leadership podcasts for, well, really since the podcast started. And, of course, the Dave Ramsey Show here and the practical advice we give you for tough money questions.

And don't forget, we're on your smart speaker. All you got to do is just look at the speaker. You don't even have to look at it, actually. You can just speak into it or at it or towards it and say stuff like play the dave ramsey show and see what happened was i just did that for some of your speakers over the radio and it just kicked off i just love that part so alexa your google home whatever if it's in surround sound of my voice right now it just started playing the show yeah we're everywhere baby you can stay motivated by going to Dave Ramsey dot com slash show and you can see all the different ways all the different Ramsey personalities have podcast radio shows the

Ken Coleman show now is on traditional radio and we just launched it two weeks ago it's already at just under 40 radio stations and so it's doing very very well he's been on series 6m for a long time this podcast has been very popular for a long time but that thing's coming out of the gate hot baby on talk radio so check it out we are uh we're out here we're out here helping you that's what we do justin's in richmond virginia hi justin welcome to the dave ramsey show nice to meet you mr Mr. Ramsey. Thank you for taking my call. Sure. What's up? I have a two-and-a-half-year-old son.

He was born with a general heart defect the day he was born. He was flown to Children's Hospital in Washington, D.C. that same night. And for the last couple of years, my wife and I have been trying to get life insurance for him. He's gone through multiple surgeries or procedures. He's had a couple of heart catheter procedures and stuff like that over the last couple of years. And we were just told back in May, we went in for another procedure and they told us he wanted to have another open heart surgery sometime this next year to fix a couple of issues he's having. And the one question that we're trying to find out is what can we do to get him some life insurance?

We've been denied by multiple people, by other companies, because of his heart defect. No one will cover him because of those situations. Yeah, he's not insurable, I don't think. Why do you need life insurance on him? Just because we have it on my oldest. I have a six-year-old. you need life insurance on him? Just because we have it on my oldest. I have a six-year-old. I have life insurance on him. I wouldn't.

I just covered him as well, too. And we were just trying to get something on him. Why? In case of anything. Why do you have life insurance on your six-year-old? We got that through our other company when he was about a year old. For what? For my son. Life insurance for him why just to have because i have it on myself and my wife why

our really our financial person told us we should have it yeah because he sells life insurance on kids listen here's the thing if you pass away your family loses your income. If a child passes away, your family does not lose income. The only thing you would lose would be the cost of the funeral. And so we don't recommend life insurance on children. It may be a $10,000 rider on your term policy if you wanted to, something like that. Do you have a term policy on you? I have one to my work. Okay.

If you bought term life insurance on you, you probably, with a lot of companies, regardless of medical condition, can get a $10,000 or a $15,000 rider, which would cover burial on your children for just, you know, $40, $50, $60 a year, whatever it is, okay? And that's all you would need, and you don't need that if you have an emergency fund. We're on baby step two right now. We're in the process of paying off our debt as well right now. We went through the Peace University through our church,

and my wife and I have been paying off our debt going through those classes, and we're on baby step two right now. We have roughly probably about another debt going through those classes, and we've been on Baby Step 2 right now. We're down. We have roughly probably about another $40,000 left, which we plan to pay off within another year and a half to two years. Good for you. Okay. So let me kind of tell you what I'm saying in other words.

If you had, let's say, I'll just make up a number. Let's say you had $20,000 in your emergency fund, and you were debt-free other than your home. You were at Baby Step 3. Okay? Mm-hmm. And God forbid a child should go to heaven before you do. fund and you were debt free other than your home you were at baby step three okay and and god forbid a child should go to heaven before you do heartbreaking situation just devastate you right

god forbid but the financial implications of that horrible situation the only financial implications are cost of funeral that's it and you would simply use part of your emergency fund to pay for that. You don't buy life insurance on children unless you buy a rider that's inexpensive on your term policy just to cover burial. All insurance that is investment-oriented is crap. And so you don't, you know, I wouldn't fret about not having life insurance on your baby. I really wouldn't, other than the fact that, God forbid, something happens in one of these surgeries and you'd have to pay for a funeral.

You know, God forbid. Yeah, I mean, because our biggest thing was trying to deal with also the financial burden of dealing with all the costs because the day he was born we had over almost a million dollars, but we were very lucky that my health insurance wrote off a lot of it because it was a very good coverage surprisingly and they wrote off the helicopter flight as well too so that was one of our biggest things yeah so hey go check your term policy at work and see if you can put a child rider on that okay and if you can that'll take care of your two-and-a-half-year-old and your six-year-old, and you can just cancel the six-year-old's one.

Oh, that'd be perfect then. Yeah, because you just want to take care of burial is all. In your case, if you passed away, then we lose your income, and your family's counting on that. So we've got to have a big honking policy for your wife and kids to eat in the event you passed, right? Oh, yeah, it's about a half a million dollars. Yeah, yeah. So see, that's the difference. That's where you need the life insurance.

But life insurance on someone who's not producing an income that the family is counting on is hardly needed. Okay. So that's where this comes from. That's the logic flow behind my suggestion. So good question, man. And I'm sorry you guys are facing this, but it sounds like your little guy's a fighter. And he's going to keep fighting, I'm sure. We'll keep him in our prayers.

Wow. You guys have been through it. Well, so the deal is this. If you are earning an income and you make $50,000 a year and you passed away, you're listening to me right now, your family would need $50,000 a year to replace the fact that you're not there producing that income. And in order to create $50,000 worth of income off of an investment,

you'd need 10 to 12 times your income to invest. So if you make $50,000 a year, you'd need $500,000 or $600,000 in term life insurance. If you died, your spouse would take that money, invest it, and just for round numbers, if they made 10% on it, 10% on $60,000, $500,000, $600,000, $500,000 is going to give you $50,000, $60,000 a year income. And the investments, the income off of the investments replace the fact that you're not there to take care of your family. That's what life insurance is for.

And so we recommend 15- to 20-year level term insurance on you, 10- to 12-times your income at zanderinsurance.com. That's where I get mine. Get the least expensive you can with the least hassle you can. And that's what you're trying to do. That puts us out of the Dave Ramsey Show and the books. Our thanks to James Childs, our producer, Kelly Daniels, our associate producer and phone screener.

I am Dave Ramsey, your host. 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. This is James Childs, producer of The Dave Ramsey Show. Did you know you can now listen to The Dave Ramsey Show on Pandora and Spotify? For all the ways to watch and listen, check out our show page at DaveRamsey.com slash show.