The Ramsey Show - App - This Entitled Attitude Is Insane! (Hour 2)

Episode Date: March 22, 2024

🎵 Live from the headquarters of Ramsey Solutions, it's The Ramsey Show, where we help people build wealth, do work that Deloney, host of the Dr. John Deloney Show, author of Building a Non-Anxious Life, number one best-selling author. Let me add that, John, you know I got to get your accolades straight. It's too many. I can't count. I prefer just Jade's Friend. That's the best one. Shut up. Come on, John. Take those accolades. I'm gonna put them out there. All right, we're taking calls about your life and your money, so give us a call. is triple eight eight two five five two two five and we'll chop it up with you we got brendan in virginia beach virginia what's going on brendan hey guys how you doing doing good how are you i'm doing good what's going on i'll cut right to the chase yes so my wife and i were living at my wife's parents' place right now, rent-free.

We have a high-yield savings account. We've been fortunate to save up $60,000 in it. Cool. I have $8,000 in student loan debt. My wife has $30,000. I made the decision with her that we would, you know, we're not going to pay that off fully because we want to save up for a house. Because we also have a baby on the way that's due end of June. So we want to get out of here at some point and just buy like a smaller, cheaper house and just have as big of a down payment as possible. I'm disagreeing with much of this.

I'm having some disagreeable moments. That's why I called. Should we just let that continue to be there, that student loan debt, and then just save up for a huge down payment on a smaller, cheaper house? Here's where I agree with you. I agree with you that I don't want you with the in-laws when baby comes. I feel like that's just, it's probably already starting to get uncomfortable, and I feel like adding a baby to the mix could make it even more. Am I right?

Yeah, it's like that and a little bit of a blessing just because it's like you know they're sure yeah but but you guys got to get out of there I mean I get it so I'm with you on that um however here's where our paths go in different directions I truly truly, truly, truly believe, Brendan, that it's not going to be a blessing for you to get into a home while you still have debt and other financial obligations that require your income around. Does that make sense? You've done a great job saving up $60,000. And it kind of, I mean, to your own, the way you sound, it kind of sounds like it's like we saved up this money. It's enough to get us something that'll get us out of our parents' house. And I really don't think that buying a house should feel like that necessarily. So I'm wondering if it were me, I'd wonder what

it looks like to say, okay, let's look at some places where we can rent. If being around family is important, let's see if we can find something that's affordable in our range around our parents where we can rent that still allows us to make headway on our debt and then i would want to pay off that debt fully now here's i don't want to hurt your feelings in this way but i i'm about to hurt them um go for it yeah all right the 60 000 that you have saved and earmarked for a place, technically, you owe that to the student loan companies. And technically, that's their money. Don't hold their money, dude. Pay them up. It hurts.

I know it hurts. It hurt me. When I wanted to say it, I felt that feeling in your stomach where you're like, I don't know if it was a burrito. I felt that in my stomach because you saved up that money and you thought it was for a house. But imagine you were with your buddy and y'all were on a double date and he looked at you with that big wide eye like, oh no. And he didn't have money for his wife and you paid for his dinner. And he's like, I got you. I'll pay you back.

And it was like 200 bucks it's a nice dinner and then you're at his house and you saw an envelope with like 400 of cash in it you're like what is this you owe me 200 bucks he's like no no no i'm uh i'm saving to get us something you would think yeah bro that's my money give me my money same thing you you told somebody um hey if you help me go to college i'll pay you back yeah and they're like all right we got you and that money's sitting on your counter and you're like no no this one's for us it's tough yeah yeah it definitely hurts i mean i like the big uh i like the big number in the saving account i like thinking about you know the mortgage being very cheap that's kind of what my wife and I were debating.

And it will be. You're going to get to that point. You're going to get there. But we're proposing a path that gets you there in a safer way, less risk. Because here's the thing. You've got to be reasonable on both sides of the equation. It's got to be balanced reasoning, right? Because you're saying, man, I love the security of $60,000. Like if you love security that much,

then you will love a debt-free life. You know what I'm saying? Like if you love it, does that make sense? Or if you are risk averse, if you're like, ah, just, I don't like taking risks, Jade, then I'm like, well, then you definitely don't like having debt around. So you've got to let that, that way of thinking, it's got to work on both sides of the equation, right? Fair enough? Yeah. Yeah, that's fair. You know, I realized that you called in and I blew up your entire plan. And I feel a slight bit of sadness about that. But ultimately, I'm happy for you because I think it's truly going to put you on the best path. Again, less risk. You're going to be able to pay off this debt quickly.

I mean, you're going to pay off all of it with the $60,000. You'll be debt-free tomorrow if you want to be. Yeah. That's crazy. And then you'll still have some money that you can call. So I'm assuming that you know the baby steps, but in case you don't, the thousand dollars saved is number one. You'll have that. Then you pay off all the consumer debt. That's baby step two. You can knock that out tomorrow. Then baby step three is you save up three to six months of expenses, which technically you'll have just about after you've paid off the debt. That's what will be left. Then you save up for the down payment. So you will have knocked out three baby steps in one fell swoop. And now it's like, okay, we're going to rent a place. We're going to save. We're getting

the benefit of being out on our own. We're getting the security of having no rent. And now you also have, it's kind of like right now you've kind of got a foot on your neck. That's like, you got to get a house. You got to get a mortgage. You got, and it's making you go quickly and make these decisions. But now you have something really luxurious, which is time. And you can just take your time and save, take your time and pick a spot, not just have to go with whatever's there. Does that make sense? I kind of like that. Yeah, it makes sense. I see, I see where you're coming from. I was just, I guess that low mortgage number, especially during this time of like high interest rates was the thing that was keeping me from doing it and getting excited about, you know, it's like,

if I have 60 now, I could have 80 in like two, three months. And then that's, you know, half of a small cheap house. That is true. But again, with no debt, you're going to save up that money even faster. And the time is going to pass. If you saved 60 before, you can save it again, and you will. Are you married, Brendan? Yeah, I'm married. My wife and I have our first child on the way at the end of June. How much of this is just that pressure you feel in your home, like, we got to get a house, got to get a house. We're about to start a family, we've got to get a house. Um, it's, it's not really that, I guess it's more so, um, I'm thinking of like, you know, I have that, that equity in the house, um, cheap, cheap rate for the house, for the mortgage that's cheaper than rent, probably, you know, if we get

something small and, and, uh, you know, crappy, um, that's kind of, that's kind of where I was coming from. I don't want to think of small and crappy for my new young family. I want to think of freedom first. I want to be free and nimble. And then I want to do things on a firm foundation, man. Not small and crappy. Let that be for your high school gym physique, not your mortgage for your new family.

Pay me what you owe me. Don't act like you forgot. This is The Ramsey Show. You are listening to The Ramsey Show. I am Jade Warshaw. Next to me is number one bestselling author, host of The Dr. John Deloney Show. The man himself, Dr. John Deloney. We're taking your calls all afternoon long. The number is 888-825-5225. We're here to help you with your life and your money. That is what we do. If you didn't know it, sometimes you just see us. There's two giant buildings here full of genius type people who devote their lives to making sure you have all the resources that you need to finally take control of your money for good. And so when you hear us say things like we're going to walk along

with you or we're going to help you do it, we truly mean we're going to help you. It's really crazy. I mean, these buildings, number one, they're giant. Number two, they're paid for in cash. And number three, they're full of people, like I said, who are just so good at what they do. We've got financial coaches and people who make apps like EveryDollar and book publishers who publish your books, John, and my quick read. It's just really a really cool system that's going on here. So just know that when you talk to us, you're talking also to a clan of people who are cheering for you and want only the best for you so just putting that out there uh the ramsey show question of the day comes from kenneth in georgia all right kenneth asks i borrowed 35 000 from my father but only repaid 7 500 because of my expensive lifestyle

what you only repaid 7 500 because you're a person who lacks integrity. But we'll go from there. That's crazy. When he updated his will before he passed, he deducted the remaining $27,500 owed from my portion of the estate. I need the rest of my inheritance money. I live in a semi-expensive neighborhood and i am not in good health what should i do number one you picked it wrong two people to write into brother i'm sorry um you need to move you need to get over yourself and you need to go to your local church and ask for forgiveness from both entitlement my god almighty good for your dad for deducting this amount of money that you didn't pay

him back because you lacked character and integrity not because of your expensive lifestyle but because you chose to live expensively over you chose over your word that you gave your dad. And he deducted it from his estate. Good for him. That was part of the agreement. You didn't pay it back. So he did the next right thing. He shouldn't have loaned you the money in the first place, but he did.

You live in a semi-expensive neighborhood. Move. You can't afford your neighborhood. Move. That is not your money. Don't refer to it as your money ever again. It's not yours. It goes to whoever else he designated it to.

Why? Because it's his money, not yours. And I'm going to say something's going to get me in trouble, so I'm going to be quiet. What do you think, Jade? I say go for it. No, I hate this entitlement. I hate this.

That's mine. I hate this. That's mine. I hate this. I can't stand all of this. It's nonsense, nonsense, nonsense, nonsense. As though my choice to drive a fancy car and live in a big house overrides math, and it overrides character, and it overrides integrity, and more importantly, it overrides my relationship with my dad. You know what the most important

thing is that i got expensive lifestyle shut up shut up debt never matters to people until it's debt that's owed to them and it's not debt it's not debt that's the thing like but i'm saying like for him it's easy to look at this 30 for kenneth it's easy to look at this 35 000 that he borrowed and go i don't need to pay that right away. Like it's no big deal. I can, I'm only going to pay 7,500 of it. But if their tables were turned and someone owed him $35,000, he'd want the money today. Well, let's be real clear about this. He, my dad deducted the remaining balance owed from my portion of the estate, this is not your estate. Yeah. This is your dad's estate.

And it's his prerogative to dole it out however he wants to. He could give you a fish tank and a hammer and a high five. And that's what would be yours. You, because you're an entitled brat, looked at how much he owed you probably tripled it and then you spent that money in your mind and then when it didn't come to you in the form of a check you got uh you threw a little temper tantrum and you said well i want my money it's not yours it's not yours he could leave all of his money to your brother or to your sister, which is what I hope he did, and look at you and say, you're not, you were not a son that honored your word. And so I'm going to choose to spend my inheritance.

I'm going to choose to divvy up my estate in a different way. He's allowed to do that because it's his money, not yours. Never was yours, never will be yours. So stop referring to it as your portion of the estate as your inheritance money it's not case closed if you can't afford to live in your semi-expensive neighborhood and you're not in good health then you need to move you need to get on the exchange and try to get some health insurance you need to figure out something else to do but sitting around complaining about money that's not yours and that never will be yours and legally or otherwise um is a waste of your time and energy and i'll be quiet standing ovation good job that's my second rihanna reference in a very short period of time sometimes you need john a couple of rihanna references just to balance the world back out that was good okay you're right it was very it just ah

if you if you've been around me i don't get mad john i don't get mad about hardly anything i never do in fact i i don't i get too much criticism for not getting fired up about stuff enough i can see this bothers you i like it i can't this because this this is our our country the government owes me my professor owes me an a no it didn't you didn't do a work you didn't do a work my i i pay this whole attitude yeah shut your mouth be quiet yeah i had a conversation with my son he's uh 14 he's gonna be leaving um middle school ahead in high school and so we're starting to have more poignant we've been having breakfast together once a week for years and we're starting to move into a more of a poignant hey here's kind of my thoughts on alcohol as you get into high school here's my thoughts on sex

we talk about sex all the time in my house as you can imagine but um here's some more specific things like i'm going to start being more specific about like you know i believe in in god you know jesus important to me you know my faith's important to me here's what that looks like and here's my seasons of doubt and here's my seasons when i walked i'm real it's more intentional yeah real talk and we're talking about his grades recently and he said but i've been working so hard and i said i know but you are entering into a season of life that for the rest of your life effort does not as matter doesn't matter as much as the outcome and like we have to see it in front of us and this attitude of you just give me mine because I can choose I can do what I want. And the effort, it's not real.

And this kind of nonsense is breaking up families. It's breaking up culture. It's breaking up communities. And it's insane. It's insane. Can Kenneth be upset that his brother and sister got more money than him? Sure. Be mad.

That's fine. But move on with your life. Yeah, move on. Move on with your life. You don't get to just live in an expensive area and be like that's what i wanted no dude no yeah it's that's a really good point be mad and move on and and don't let it steal your joy or steal your peace because what he's listed here that's it's nobody else's problem it sucks that he's not in good health but that's not his dad's problem no you

know and so there is something to that john i'm here for a rant anytime anytime you deliver one i'll take it let's see we got francine in los angeles i don't know if we have time for it she says should i pay off my car loan or sell it and buy a cheaper car oh i want to know about it we might hold you on tell me about it francine hello so thank you so much for taking my call. I currently have a used car. I am a Ramsey relapser is what I like to call myself. I went through the process and I was gazelle intense. I did everything I needed to do, but I had a specific goal in mind, which was to basically quit my job and have enough money to move away. I did that, decided it wasn't the best thing for me. And then I came back into my original field, moved back to the United States from Portugal. And I kind of fell back into my old ways. So I currently have a used 2019 Mercedes and it's just the image, if you will.

I'm putting my air quotes up. Okay. I'm about $9,000 upside down. 9K upside down? Okay. $23,000. Hey, hold on the line. Hold on the line.

We got to go to a break, but I'm going to come back, and let's figure out what to do with this car. We'll help you out. This is The Ramsey Show. You're listening to The Ramsey Show. We've got Francine on the line from Los Angeles, California. She's trying to decide if she should sell her car, what she should do. She's trying to get a cheaper car.

She's trying to get out of debt. She backslid from the Ramsey plan a couple years back, and now she's trying to get herself back on the good foot. Francine, did I get it right? You did, absolutely. Awesome. So you told me you've got, right now you've got this 2019 vehicle. You owe $23,000 on it, but you're $9,000 upside down, which is definitely worth noting. This is your only vehicle? It is. Can you tell me how much other debt you have? So I actually was about $15,000 in debt and I ended up paying that off in about three weeks. That's awesome. So this is my last bit of debt to tackle on top of a house that I'm trying to

pay off eventually. Okay. Are you currently making extra payments to the house or are you just making the mortgage payment? So I pay the mortgage payment, which includes the taxes, about $1,800, and I'm paying $2,000. I don't live in that house

because I got a job in Southern California and that house is in Northern California. So I'm allowing my friends to rent it basically. And I'm paying the difference. So I'm giving them a discount on the rent because I had to move pretty quickly. And then you're someplace else paying full rent. Paying full rent.

But my intention is when this lease is up to move from a two bedroom because I don't need two bedrooms down to a one-bedroom and that'll save me an additional $1,000 a month. But you're never going back to Southern California. Right? Not when I'm done with this job.

Well, Northern, so the Northern California house is kind of like what I envisioned to be my forever home. And that was my other question, if I could fit it in. Well, let me go back. Let me go back. So first off, because where I see a problem, I'm just going to call it out. First off, the goal right now is to pay off your debt. All right.

So you're paying extra, even if it's $200 towards a mortgage to try to pay it off quicker. Right now, we need to focus on the smallest debt at hand. Baby step two is paying off all of your debt except your mortgage. So I'd stop making extra payment on the mortgage and put all that money towards this car. To answer your first question, I would not sell this car that you're upside down on. I would pay it off. You've paid off $15,000 already. You can pay off another $23,000. It's going to be painful, but it's your only vehicle. You need a vehicle. And so that's thing one. Before we go further in, can you tell me what your income is every month?

What you bring home? It's 215 is my yearly. So I can bring home, take home is about 10,000. Okay, great. So yeah, 100%, the car that you have, although I don't subscribe to going into debt for cars, it's within our realm of keeping the car. You're gonna be able to pay it off in under two years. It's not more than 50% of your yearly income. So for that reason, I'd keeping the car um you're going to be able to pay it off in under two years it's not more than 50 of your yearly income so for that reason i'd keep the car plus you're way upside

down so keep it paid off quickly now let's talk about this house because i understand it sounds like you have a dream wrapped up in this but i would never recommend keeping a house in an area that i don't live in and that i don't know exactly when I'm going to be back. It'd be one thing if you're like, hey, I had to go do this thing for six months. I'm going to be right back. But we don't know when you're going to be back. And you're letting people live in it at cost. You're not even making money on it. And you're turning around and paying rent someplace else. It's just a lot of money going down the toilet. Okay. I always thought because I'll never be able to buy back

into that area that's what's making me hold on to it because i got it at a great price but you're never going back to that area okay all right i mean are you uh you know what when i did my ramsey math i can pay that house off probably in about three years after I'm done with the car. Basically, that's my last thing. It's still long-term rental. It's still long-term rental, though. Paying it off is great. And I love that you have that aspiration.

Don't lose that. Keep that aspiration. But I don't want you to keep a property out of fear that you'll never be able to buy something else that cheap. Because the fact is, life gets more, like, the prices of things go up as time goes on we rarely see the prices of things go down like they go up incrementally incrementally and lately of course it's been big increments but they go up and hopefully wages start to rise and go up with it right that's what you're hoping for so don't let the fear of something become becoming more expensive make you think i'll never be able to afford it again because these things do have a

way of balancing out obviously it's always going to be you can only buy what you can afford but it balances out does that make sense i don't want you to say oh i'm never going to be able to have a house you may not ever be able to buy a house that cheap but you may be able to you'll still be able to buy a house does that make but you may be able to, you'll still be able to buy a house. Does that make sense? Like my grandparents bought houses for $30,000. I'll probably never be able to do that. It doesn't exist anymore, but I can still buy a house within a price range that works

with my budget. Does that make sense? Okay. So sell it, invest the money, and then eventually pay cash for a different house after I have enough money. Yes. Sell it, take some of the money. Pay off all of your debt.

Keep the rest in a high yield savings account. Let it accrue interest. I probably wouldn't invest it. The only way I would invest it is if you think your horizon is beyond five years. And if that was the case, yeah, just drop it in an index fund. Let it gain what it's going to gain. But if you think that your horizon is less than five years, just keep it in a high yield savings account.

Right now, they're like 5% and that's pretty freaking awesome. Okay. Thank you so much. Awesome. Thank you so, so much for the call. That was a good one. Let's go to Michael, who's in Baltimore, Maryland. What's going on, Michael? Hello. Thanks for taking my call. How can we help hi so a little bit of backstory my i kind of jumped into this thing you know head first i um uh with you know getting my debts paid off i don't have a lot but we had somewhere around 25 000 and it was just cars and a small, small credit card.

So I ended up selling my car and using that to start snowballing. Um, and we figured out basically that by June, uh, we'll have my wife's car paid off and this credit card gone. Okay. That's great. Zero percent credit card. So I feel like I'm, you know, making good steps forward, you know, and then I'm going to, at some point here, grab a cheap car for cash. Okay. Just so we have the second vehicle. So we're up against the clock.

Get right to your question, brother. We're right up against the clock here. Oh, yep. get right to your question brother right up against the clock here oh yep so my question is is saving for the is there a better way to figure out the best way to to save for the six months emergency fund a better way to figure out how to save like you want to increase the rate you want to save it faster is that right yeah because when i yeah when i did the original based on the snowball it looks like four years the only way to. The only way to impact the equation is with dollars. That's the only way. There's not a magic button that you push.

If you want to go faster, you've got to find more dollars. Make more, spend less. Yeah, that's side hustling or that's cutting back your lifestyle. That's the only way to make it go faster. How does a six-month emergency fund take four years to save up? Well, my wife is looking at me funny about that same question. Just when we were looking at the initial snowball that we seem to be starting. Forget the snowball.

I'm sure we're going to find more money. Forget the snowball. How much does it take you all to live every month? Expenses, what I'm looking at from what we did in the app, is $7,000, $7,500. So $7,500 is a basic emergency fund. Take all your debts off the table, though. Like if you're not making any debt payments and you've just got a mortgage, your food. Yeah, that's not bad. That's not including the debt payments, the minimum.

You got to keep that in mind. So $35,000. It's going to take you four years to save up 35 grand? No, when I was looking at it, I was figuring somewhere around 60. Okay. 60,000? Yeah. Okay.

Tell me what it... Real quick, real quick, real quick. Tell me what it is before real quick real quick real quick out of all of the things tell me what it takes tell me what you bring home every month and tell me tell me what you bring home every month after taxes 10 10 000 okay now tell me of that 10 000 what does it take to make your household run and this is not including extra debt payments? So that should be, it should be $7,500. $7,500. So if you do that and you do that three months, bare bones, that's not $60,000, right?

That's somewhere around $28,000. For three months. For three months. Yeah. So I think that maybe start there and then see where you go. And then if you want to build it up to six months, there's a couple of factors that would make me decide between three or six months. And of course, it depends on job stability of both of you are working or not, whether you're healthy or not.

And you can think through that. But remember, you always have room to bring your income up. And if you can do that, you should do it. This is The Ramsey Show. You are listening to The Ramsey Show. I am your host, Jade Warshaw. Next to me is Dr. John Deloney. We're hosting all afternoon long.

Give us a call. The number is 888-825-5225. Hey, I want to announce a brand new event that's coming up. I personally am very excited about this. It's Dave Ramsey's Investing Essentials. At this event, Dave is going to do a deep dive into investing. I know you all want to know how he's getting these rates of return that he's always talking about. And so for the first time ever, he's sharing his personal playbook on investing, including how he buys real estate. So this is a two-night virtual event. It's going to be May 21st and 22nd. And the great thing about it is it's online. So you can watch it at home

in your pajamas, eat some popcorn. Investing is something that you guys want to hear more from. You've asked us and we are delivering. This is your moment. At this event, we're going to talk about the basics and then we'll deep dive into the specific things like mutual funds and real estate. You're going to learn how to maximize your 401k, how to do your mutual funds. Dave is going to tell you guys his personal strategy for real estate investing, which is, I feel like that's gold right there. He's going to tell you which investing trends to follow, which ones to avoid. Guys, this right here, trust and believe, I'm going to be watching it. I'm going to watch it for my darn self. Tickets start at $199. I think that is an

amazing value. Visit ramseysolutions.com slash events to get your tickets today. Man, that's exciting. Love it. People have been asking about something like that for a long time. I'm just annoyed because like the cool part about working with Dave, besides he's just like a fun guy to hang out with is like, Hey Dave, like buy this and he's like well here's why I would or wouldn't and I'm like yeah I got the inside track yeah and now everybody's gonna have the inside track it's kind of I don't know yeah I thought it was some secret not anymore secrets of the rich all right yeah definitely sign up for that it's going to be a good one did I tell him where to go for it ramsaysolutions.com slash events to get your tickets today all right let's going to be a good one. Did I tell them where to go for it? RamseySolutions.com slash events to get your tickets today. All right, let's go to Tracy who's in Joseph,

Oregon. What's going on, Tracy? Hi, I'm just super stoked to be able to talk to you both. Bless you guys. I'm excited to talk to you too. Yeah, I started listening to you guys about a year and a half ago and just thoroughly enjoyed listening and applied the principles to our personal life, my husband and I. I wish I would have known these principles back in 2018 when my husband and I and our daughter and her husband bought a chocolate slash coffee shop in a little cute little town in Joseph, Oregon. Okay. We have lots of people coming through in the season, you know, the tourist season.

Yeah. But we ended up getting ourselves into some deep debt. I was going to say, a lot of people come through, but not enough people. Who's in on the deal? Tell us who it is. It's you and your husband. So it's my husband and I and our daughter and her husband. So, you know, we're both, we're all four owners in this.

Okay. I'll just give you a quick breakdown of our debt. We bought from the owners at the time. They carried the loan. The remaining business loan right now is $131,000. Okay. We also took a private, we have an uncle that was able to get a private loan for the building. We bought a building and did a major remodel, but we are in debt to that.

So the remodel, how much is that? $277,000. $277,000. Total debt. Yeah, I'm just going through. And then the other, so we have various, we have different businesses within this big building. So we were able, then COVID hit and we were in debt. We'd put a whole ton of stuff to remodel on credit cards, which is stupid. I mean, a lot of this is stupid. But that's part of the $277,000, right?

Yes. Okay. cards which is stupid i mean i a lot of this is stupid but that's part of the 277 right yes okay um the sba loans though is where we just like oh that's where you went to town so how much are the sba loans because of the 280 000 okay so we have a total debt of 688 362 okay of $688,362. Okay. We gross, the chocolate slash coffee shop called Arrowhead Chocolate, grosses, last year they grossed $603,000. The building, because we're able to rent out You gross $603,000? Mm-hmm. What's net profit? So the net profit was only about $9,000.

Oh, yay, yay, yay. What's your draw? Are you all paying yourselves a lot of money? Yeah. Well, this is the thing. Let me finish giving you this other. So then the building itself, we were able, because we rent out various office spaces and whatnot,

the huge building, we grow 60,000 on that. But at the end of the story, we only showed up $728 that was a gain, right? How? Wait, wait, wait, wait, wait. You're only netting $728 out of renting out all of this business space? Yes, at the end of the year, whatever. Something's wrong. Our payroll. something's wrong payroll something's wrong

i know our payroll cost to keep all these employees going to run this this last year was 185 000 um cost of goods has gone up in the past year my daughter's the one that does all these numbers i'm just the one that called that i'm gonna call and listen listen listen so we need help yeah you do um there's a lot of problems here number one you have to stop taking on debt number two oh absolutely number two i know that your daughter-in-law or your daughter may not be your daughter may not be even though she's family she may not be the best suited person to run your books because your business is crazy you're in so much debt things that that you guys went on business ventures thinking that it was

going to generate profit and somebody clearly did not do the business case correctly because you remodeled and built more business space so that you could rent out the space and it's netting you $728. That's crazy. Help me with that. Like just, just, let's just talk about that. That means there's $59,200 of what? Debt service? Light bills? So, well, so see that out of that, so we have the Dotson Ivy is what the name of the building is. Out of that, we have to pay the building loan to the uncle. We have to pay the FBA loan. Of course. We have to pay the fuel bill to heat it.

None of this was evaluated properly. It was almost like you guys just sat around a table and a campfire and said, wouldn't it be cool if we just bought a building and we could lease out the space to somebody else? And nobody ran the numbers. It was just a family dream. And now you're in it. And because the debt is so heavy, let me finish, because the debt is so heavy, it's cutting into any profit that you could have ever had.

But because you guys sat there and did math on somebody's kneecap, you guys aren't seeing these numbers for what they are. Let me ask you, though. And I get all that. Why haven't you raised the rent? Well, we have. We actually did just this month. In April, everybody's going to start paying more rent. Okay.

I guess what I'm saying to you is I understand everything you're saying, but we are coming to you going, yeah, when we first bought this business, we went to an accountant and we said, these are the books from this chocolate shop, and we think this would roll. She looked at it and she goes yeah i think it and then we we ended up getting this biz the building that's what i'm saying model all this that's what i'm saying we know we we're the worst business owner people that imagine tracy tracy tracy how do we the only way out the only way out is to get somebody with more knowledge than you

to look at your numbers and go, here's the path forward. You're going to need some business consulting on this because this is beyond daughter's pay grade. Somebody's got to be able to look at this and say, here's the way we need to steer the ship in order to get out of this hole. Or can we even get out of this hole? What would it look like? What's the timeline? What would we have to do? Would we have to raise rents?

What needs to take place? We're not going to be able to tell you that on this show because we can't look at everything. But I don't see a path forward without you selling either the business. If your business only makes $9,000 a year net, your business is failing. Oh, absolutely.

If your real estate is only generating $700 a year after expenses, that can't survive a single leak. Nope. Right? And we see it and we realize it, but we're like going, okay, so I'm like, we thought, well, maybe we should sell this business. Well, we can't sell the business to even clear out these SBAs, et cetera, right? Well, here's the thing. Here's the thing.

Again, having somebody coming in and evaluate the business to see if you can sell it, what would it go for? Are you able to sell it? Maybe you make nothing at the end of it, but maybe it's enough to clear the debt. And in your language, we're the worst business people ever. Just own that. We made a mistake and we're going to sell this thing and be done with it. But I don't I don't see much of a path forward. Yeah, I definitely don't. What I do know is daughter is not the one to make any financial choices moving forward or run the books. That was a tough one. This is The Ramsey Show. you