The Ramsey Show - App - We Live With My In-Laws and We Need To Get Out!

Episode Date: May 27, 2022

Ken Coleman & George Kamel discuss: Should you convert a traditional IRS to a Roth, How to ask for a raise, When is it time to walk away from your business, Using your savings to pay off debt, Preparing for a switch in careers, How to move out of your toxic in-law's house. Want a plan for your money? Find out where to start: https://bit.ly/3nInETX Listen to all The Ramsey Network podcasts: https://bit.ly/3GxiXm6

Live from the headquarters of Ramsey Solutions, this is the Ramsey Show. It's where we talk to you about your life, your money, your work, and your relationships. I'm Ken Coleman, joined by George Kemmel. We are Ramsey Personalities, and we are here for you this hour. It is a free phone call to jump in. 888-825-5225 is the phone number. 888-825-5225. How's your energy, George?

You ready to go? I'm making it. I got some cold brew under the table. I've been taking some sips off of. Cold brew under the table? Yeah. Coffee. Let me make sure people know because I'm a hipster, Ken.

It sounded very, very bougie, as the kids like to say it's just iced coffee yeah i need to try some of that on the next break i tried to get a little extra time and you didn't you weren't a big fan i'm not a big fan i like a little cream it's an acquired taste all right i'll try to go with black coffee well we are here we are fully caffeinated apparently ready for you let's go to the phones chris joins us in Oklahoma City, Oklahoma. Chris, how can we help? Hey, I take good money here, Ken. But my main question is... Yes. Get in line, man. Start the Kickstarter. I'm on it. My main question is, my wife just changed jobs, so she's transferring over a 401k.

We're trying to decide what to do with that. Okay. The options are if she keeps it at nationwide right now, it's not taxed because it's a pre-taxed 401k, but if she rolls it over to her current one, it's a Roth 401k, and they'll tax it now, but I'm assuming that's not going to be taxed when we retire, so I'm wondering what to do with that. Do you guys have a paid-for house? No, we do not. Okay. I would just roll it over to an IRA, a direct rollover to a traditional IRA. That way, you won't have any tax implications. It's not worth taking the tax hit right now because that money is better spent helping you guys along the baby steps. So we

tell people not to do those transfers to convert that money and take the tax hit unless they're in baby step seven with a paid-for house. Okay. So you don't need to transfer it to the new job. Yeah, you can transfer it to an IRA outside of her work. That's where she's going to have the most control over it. You're going to have the most options for investing as well. A smart investor pro can do that. You can reach out to one at ramseysolutions.com to get that process done. Easy. Thank you for the call, Chris. All right, Lauren is up next. St. Louis, Missouri. Lauren, how can we help? Hi. So I have a quick question for you. My husband and I are wondering if we should sell our Jeep. We're currently in baby step number two. Okay. How much do you owe on the Jeep? We own it. Oh, good. So we own both of our vehicles.

We only have $4,700 left in debt, and we'll be out of debt next month. Oh, yeah. So why would you sell it? So we have opportunity to make, we both work from home, so we only drive my car now pretty much. We haven't driven the jeep in about a year um so we can actually make around twelve thousand dollars off of it more than you paid for it yes more than we paid wow okay and it would move us from baby step two to baby step three b

immediately basically but we did get an offer that was a few thousand less than what we asked for. So we're wondering, are we just being really impatient? I think you are. There's nothing wrong with selling the Jeep, but you don't have to. There's nothing about the situation where I go, oh, my gosh, you've got to sell the car today. So if you want to hang on to it, if you like the car, keep the car, and you'll get there. It may take another six months to get to Baby Step 3B, I imagine, right? We should be in Baby Step 3B by August.

Okay. So you're going to get out of debt in the next month, and then a month or two later have a fully funded emergency fund? Yes. Wow. What's your income? We make before taxes $147. That's fantastic. What's your income? We make, before taxes, $147. That's fantastic. That's great news.

Yeah, the only question I have, Lauren, just from a practical standpoint, I absolutely understand where you're coming from. It makes a lot of sense on some level because you both work from home. But, you know, to give you an example, I had a flat tire this morning. Yeah, a little screw in the tire. Yeah. Get out in the garage. Get out in the garage, the tire's flat. I'm like, underneath the car, what in the world?

So sometimes you might need that second car, and you guys have got a paid-for Jeep. That's the reason to have something around. And if you sold the Jeep, at least have a $5,000 car that if one of your cars had to be in the shop, you could get around. But I mean, there's nothing wrong with selling the Jeep either. But I wouldn't sell it for less than what you think you can get for it, regardless of whether you sell or not. Okay. Yeah, I would be patient to get the profit that you're looking for on it.

But again, three months from now, I mean, it's a wash either way. And so I wouldn't sell it out of impatience. I would sell it because you go, hey, 3B is way more important than us having this Jeep. We're okay buying a beater for now. I'm good with that. Yeah, I like that. Good job. Love the call, Lauren. You guys are going to be debt-free. Hopefully, we get to hear your scream here on the show. Really, really exciting stuff. Let's go to San Bernardino, California. Sarah is there. Sarah, how can we help? Hi. So I have a job question. I have an interview on Tuesday for a different position in the same company. I want to be professional while asking for a raise into this new position

and also kind of, I don't know, guaranteeing or give me some sort of acknowledgement that I have licensing that I'm finishing up in the next couple of months, that there will be an option for a raise when I actually get that license in the next few months. So what do you know about this position? Does it already come with a raise? Or is it, do you know where it falls in the, you know, as it relates to what you're currently making? So I've had this position before and I left the company, hated the other job and came back. I took a pay cut when I came back for the new position

from what I was making previously in the same position. It is a travel position. So I know that I'll be working different hours. I know that I'll be driving quite a lot, but they pay mileage and stuff like that. So it'll be a raise in a couple of different areas. But when I was there originally, I was at like $19.50, and I pretty much want to say I don't want to go into this. It's such a big change without less than $20. Okay, but you're currently making $19.50, or that's what you made previously? That's what I made previously. I'm currently at $17.50. Right, but this job is going to pay more is what you basically just told me, roundabout way.

Yes. This new position pays more. So I wouldn't go in asking for a raise with the job. That is not going to go over well, no matter how sweet and kind and smooth you say it. You go in and you try to win the job. What I would say in the interview is that you are very close to completing some additional licensing or certifications and stuff like that. Does that make sense? I would tell them, hey, I am, because I'm assuming that's relevant to this new job, correct?

Yes. Yeah, I'd let them know that. But I wouldn't do the old, hey, I really want the job. Here's why I think I'm a good fit, blah, blah, blah. Oh, by the way, I'm almost done with this additional training and I would like to have a raise once that's done. I don't think that's the right way to go about it. But I do think it makes sense for you to share that you are about ready to complete this training.

And what I would say in the same sentence is, is there a growth plan if you get in this position to where there are measured results that will be agreed upon between me and you, and I can go after that with this new training so that I can continue to grow in my value and responsibility to the company and, of course, win financially as well. It's all a posture, George. It's all about how you set that up. That's good. You've got a lot of resources about this very issue on your website.

That's right. KenColeman.com. Check those out. How to Ask for a Raise is an article with a lot of other great resources as well. All right. Quick break. And then when we come back, more of your questions. This is the Ramsey Show. I just saw a study that really made me sad. It showed that families owning life insurance in the U.S. was at its lowest point since the 1970s. After what we've been through the past few years, I'm just lost on how people don't make this more of a priority. How are you going to make sure your family needs

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That's 800-356-4282 or zander.com. Welcome back to The Ramsey Show. I'm Ken Coleman, George Campbell joining me here. Boy, when it comes to events, we are back at it, aren't we, George? On the road again. On the road again. That's what Nelson said. Yeah. You know, let's talk about our Building Wealth Live event.

We were just in Orlando, Florida last week. Great crowd. 3,000 people. Yeah, just really, really fun stuff. And at this event, we're going to walk you through the steps to build real and lasting wealth. The financial principles we teach at that event are the only principles that do work. We have decades to prove it. The Building Wealth Live Tour has already had two great stops, Vegas and Orlando. And we've got some fall dates, George.

I don't even know if you have these on your calendar. They're not there yet. You can get your phone out while I go through these, okay? Just get them out. Phoenix, September 13th. Sacramento, November 1st. Minneapolis, November 10th. San Antonio, September 13th. Sacramento, November 1st. Minneapolis, November 10th. San Antonio, November 15th.

Dave Ramsey, Rachel Cruz, George Campbell, Dr. John Jaloney, and I will all be there. Tickets start at $25 or you can get a four-pack of tickets starting at $60. Bring your friends, friends rather, not fins, friends. Go to RamseySolutions.com

slash events, RamseySolutions.com slash events ramsey solutions.com slash events and then um how about our entree leadership summit just finished that up that is our premier leadership event for leaders of all levels if you want to grow in your leadership entree leadership summit it'll be may 30th through june 2, 2023 in Nashville. I can't even believe I'm talking about 2023. It's the future. Along with Dave Ramsey, myself, Dr. John Deloney, you'll hear from James Clear of the Atomic Habits Phenomena,

Willie Robertson of Duck Dynasty. George, that was one of your favorite shows, wasn't it? I love that show. It's so good. Yeah, unbelievable how much George loves to binge on Duck Dynasty. It's a life I've always wanted to live. Yeah, you've got some duck waiters that are taller than you. And the whistle.

Is it a whistle? I don't know what they call it. I think it's a duck call. Well, yeah. Yeah, it's not a whistle. Okay. Dr. Jordan Peterson. Oh, yeah.

That's more your taste. Smart guy. Patrick Lencioni, Amy Cuddy, Mark King, and Manit Chauhan. Oh, yeah. Food Network. Food Network. Fantastic from the Food Network. This event is a game changer for leaders.

So, ramsaysolutions.com slash summit for that one. ramsaysolutions.com slash summit. So, there you go. Lots of events. Best way to figure it out, ramsaysolutions.com. Hit the old event page, and we just have scores and scores of things for you. So, fun stuff. Can't wait to be back out on the road.

Let's go to Grand Rapids, Minnesota, actually. Amy is there. Amy, how can we help? Hi. Hi, Amy. How are you doing? Are you surprised to be with us? Amy, you're live on the air.

The whole show is about you right now. Wow. Yeah. Wow. Yeah. Okay. My question is, my husband and I were through the baby steps, and we have about $200,000 invested already. But we also own a business, and we're considering, but the question is whether we should sell the business now or not.

It has quite a high valuation to it. So if we could get that price, we were considering selling it now, investing the sales from the business. And then we would just cash flow doing other jobs or something for the next few years, or whether we should keep the business, work on it for a few years, and then retire in, say, five years or so and sell it at that point. What would keep you from selling it today? Let's say that we got the offer, the valuation matches up. What would keep you from going in and moving it versus staying with it for five more years? Is it to make even more five years from now? What's the choice here emotionally for you two?

I think it's more of a sense of security if we kept it and the cash flow that we would hopefully get from it. I mean, nobody can predict the economy, but hopefully it would bring the cash flow it has been up to this point. What's the current cash flow? So there's some security in that? Well, on paper, about $250,000 a year. And in reality, is it different? Well, no, I shouldn't say that. We invest much of it back into the business, so we're probably taking about $150,000. Okay, so your income is $150. The business revenue is higher. Yeah.

Have you officially started shopping it? No, we haven't listed it or anything. That's the decision we're trying to make. What's the number you think you're going to sell it for? What would make you guys go, no-brainer, we're done, let's go? What's the number? No less than 1 million it's valued at currently at like 1.2 maybe 1.4 depending who valued it uh we had a business valuation done um by a company who sells businesses. What business are you in? We make a product and then we sell it all online.

Okay. Do you anticipate having to work in the business as a part of the deal or do you think you would be able to sell it and be able to walk, no attachment? I would want to walk. Got it. Well, you might want to, but you may not get an offering. A lot of times in situations like this, certainly when you start a company like this, you are the founders. So I would certainly weigh that.

But I don't know that there's any – I think, George, this is a numbers game. Let's say you get 1.25 or whatever you said it was, Amy, for it now. Waiting five years, how much more does the valuation go up? That's going to be a direct result of what your revenues are. And do you get halfway through, two and a half years in, going, man, we're tired. We just want to kind of do something else. I think it's a numbers game because I don't think it's going to be that much more security. George, you agree?

Well, you agree? Well, you're saying, Amy, that the cash flow yearly is the security you're looking for. So you're saying if we sold it, we wouldn't have an income anymore. Well, we would, but we don't think we would make that much. Like we would both work. My husband works full time. And we would either buy another smaller business that I could work at, or I'd just get a job. Okay, and you're okay with that.

It sounds like you don't really want to continue the business. You're not in love with it. I'm not in love with it, but either way, I'm good with it. I mean, I have plans for it if I kept it. What would your husband do? I actually want to push back on something if I might, and I might not be able to. What would your husband do? I actually want to push back on something if I might, and I might not be able to. What would your husband do? Give me an example of a job that he or you would do for somebody else if you sold this.

Well, he already works full-time. He would continue with his job. All right. What is that job? He works for a supermarket. How much does he make? He makes like $13 an hour. Okay.

I just challenged the notion that the two of you in this world with the experience that you have couldn't make close to $125,000. And you don't even need that much. But if you sold the business and this business is on the side, is that right, from what your husband does? You're the one running it? I'm running it, but it's our main source of income. Yeah, no question. We invest, my husband. Right.

When you say you invest, are you investing back into the business, or are you saying into the stock market? No, into the stock market. Okay. How old are you two? I'm 40. He's 44. Okay.

So you guys have plenty of life to go. So I'm going to make decisions based on our long-term desired future that we have together. And so if selling the business helps you get there, then I'm all for it. But right now it doesn't sound like you guys have a clear picture of what's next. And I think having that clear picture would help you make a decision. Okay. Are you both on the same page as you call us today, or is one of you leaning one way and one's leaning the other?

We're both going back and forth. We've had much discussion over this. When you called today, which way were you leaning? Sell or keep? Sell. Which way was he leaning when you called? I think he's leaning towards sell at the moment. Okay. Well, I think George is right then. I think that you've got some real options here. I love that you have the options, but this is, where do we want to be five years, 10 years, 15 years down the road? I'd start there. Yeah. Do we want to retire early? Do we want to be business owners long-term? And the truth is if you got a million dollars out of this deal and

you invested that money and you made 10% on that money, that's a hundred grand a year you made on your investment without running a business. Exactly. And then you can work for fun, work for dreams. I think this is a candlelight dinner. Where do we want to be 15, 20 years from now? Now, once we agree on that, what decision do we make primarily around this business based on where we want to be? And I love your options. Don't stress over this. Just get really, really clear and watch what happens.

When we get clear we get amazing confidence on the other side of clarity this is the ramsay show All right, America, welcome back to The Ramsey Show, where we help you win with your money, your work, and your relationships. I'm Ken Coleman, joined by George Campbell. Thrilled to have you with us. If you want to jump in, it's a free call, 888-825-5225. That's 888-825-5225. Anthony is now on the line in Houston, Texas. Anthony, how can we help? Hey, sir. Good afternoon. Good afternoon. How are you doing? Oh, we're having a blast. All right. So I have a couple of questions for you today. First is we are very familiar with the Baby Steps program, but we didn't follow it all through our journey.

So we skipped the step two, but we are in a great position now because we are in debt for like maybe 60 grand, but now we are down to maybe 9,000. Wow, great job. Yeah, because we did a lot of side hustle and overtime. And right now my question is we have approximately 20,000 on our savings for our emergency fund, and we still have, I think, $9,000 in debt combined with our car and one credit card. Okay. What's the problem?

Should I pay that off? Yes. And use my emergency fund for it? Yes, because the baby steps are pretty clear. You understand the baby steps as we lay them out, yes? I pay that off and use my emergency fund for it. Yes, because the baby steps are pretty clear. You understand the baby steps as we lay them out, yes? Mm-hmm. Okay.

Well, then you've just gotten it out of order. The great news is you got the money and you're debt-free today. Like, you could do it while we're on the phone, man. What are we waiting on? Let's go. Right? Okay. Yeah, and another question that I have is um right now we are we are here in houston and um we are thinking of moving to california um is it wise to do that um why are

you thinking of boy i don't want to be snarky right now i'm trying to suppress the snark because i need to know what the real reason is. Why are you thinking about moving to California? I believe that it's just like a better spot for our family. We had a vacation over there a couple of times, and we love the area. What specifically about California and its taxes and its draconian policies and i'm being serious are better for you and your family than houston i mean specifically give me three things that make it better other than we had a great vacation first my wife and i are in the

medical field and they pay more over there right Right, but everything else costs more, too. That's right. That's right. And the Lake Tahoe, we really love. And the vacation, we have a couple of family members that lives there, and we just want to stay close to family. Okay, so you asked us. You asked George and I if that's a good decision.

Yes. I'm trying to see where the numbers make sense. Were you wondering, or do you absolutely believe it's a good decision? Because this is a numbers question. I mean, to live there and to ask, is it a good decision, you're saying, okay, financially, does this make sense? And it's all about the budget, the increased cost of living. Yes, you're making more money. So which way were you leaning?

We are leaning towards moving there. Okay. You got jobs lined up? Not yet. Okay. George? Yeah. I mean, to Ken's point, I think you have a lot of homework to do to actually figure out,

is this life going to be the life we thought it was? Because what I'm worried about is you get out there and you go, hey, we're making more money, but we have less at the end of the month and we're not as happy as we thought. And man, this is tough. So I want you to do your research to actually figure out, okay, if we made 15 grand more with the cost of living increased, does that actually mean any more in our budget every month? Because it may not. I mean, Anthony, I'm going to square with you. I've got really good friends that have moved from California to Tennessee recently and really good friends that are considering it,

and we're talking about a massive pay raise for them by moving here and the tax breaks. So I wouldn't do it for the pay raise is what I'm saying. The pay raise is you've got to run it out like George said. What's our taxable income? What's that going to look like? What's the tax burden, the cost of living, and all those places? You've got to do your homework and lay it out on the budget. Look, you called and you were doing the baby steps out of order.

Please don't make a move on this. Just because we had a wonderful time of vacation there. If anything else, I'd go spend another week or two there and really get on the ground and look at housing and really talk to a great real estate pro, maybe from ramseysolutions.com and get an idea of what things are going to look like. You need a lot of information as to whether or not this is a good financial move or not. Okay. Got it. Because I'm with you. Lake Tahoe area is gorgeous. It's fantastic. I'm not against moving anywhere. If you want to move there, it's your prerogative,

but just don't do it for the wrong reasons with false expectations. I don't want that for you. And on the baby step side, you're going to fully fund that emergency fund. As soon as that debt's paid off today, we're going to build it back up to where you need it to be for three to six months of expenses and begin investing. Thank you, though, for the call, Anthony. Appreciate it. Kara is up next, Sacramento, California. Kara, how can we help? Hi there. My husband and I are considering buying an automotive shop in the small town we live.

He is currently the foreman at the shop, and our jobs basically would be to both have our full-time jobs be running this shop and I do administrative and accounting. So I would be doing that side of it. And we're just wondering if we should really dig into this and keep looking into options and moving forward. They want 150K for the business, but doesn't include a building or anything. That's just the employees and a lot of the tools. Would you be picking up a lease on the building or what would the building cost be? So the lease right now is $2,600 a month. And the current owner's lease is up in about a year so we'd have to get something solid you know to see what our lease would be beyond that year what's the business worth

so that's one thing i really want to dig into the accounting if we get more serious about it. His kind of loosey-goosey income before he gets paid is $250,000 a year. Yeah, you've got to dig in the books, and I'm glad you have an accounting background because, look, bottom line is we're looking at gross and we're looking at net, okay? Yep. And you understand what valuations are built on, correct? Yes. okay yep and you understand what valuations are built on correct yes and we definitely if that 150k is um more than three years worth of profit that's definitely not what it's worth and we will definitely will not pay it that's exactly and are you going to do this with cash do you have 150k laying around so we don't have 150k laying around he So we don't have $150,000 laying around. He is willing to do payments, kind of like

Dave recommends the profit out of the business. For about half of it, we would try to come up with the other half. We have about $8,000 extra right now, and we have some lawsuit settlements that would hopefully be coming in before then, and we have a couple toys we can sell, too. My guess is it's not worth $150, though. So that's the good news. I don't think it's going to be worth $150 once you dig in. Doesn't sound like to me.

Okay. Maybe it is. I don't know. I doubt it. Why are they selling the business? So the owner is retirement age and he just wants to retire okay yeah well i don't think it's a bad idea if the valuation comes through and you go this is a good buy and they're willing to do the deal and we can pay it

over the you know through the profit of the business right and you guys want to be business owners and it must be also reasonable kara on, on what percentage of the profits you're paying each month. You know what I mean? Yeah, definitely. You've got to pay yourselves, too. Yeah, we need to pay ourselves, and we need to have some cash in there so we don't end up not being in payroll. Is that an evaluation that Dave uses? Is that still applicable?

That's correct. Absolutely. Absolutely. Okay. Yeah. And then if we did get the opportunity to buy the building, what would be the guidelines on that? Because I know mortgage is 15 year, 25% of your take home. Well, I think if you can afford it as part of the business and that becomes the business debt that you work on paying off. It becomes a different situation. Thank you, though, for the call.

Eyes wide open. Let's not feel like this is the only way that we can do what we want to do. Don't get sucked in. If it doesn't feel right, trust your gut and walk away. This is The Ramsey Show. I have to show. The Ramsey Show continues. I'm Ken Coleman, joined by George Campbell this hour. 888-825-5225 is the number to jump in. 888-825-5225.

Lori is up in Springfield, Missouri. Lori, how can we help? Hi, thank you so much for taking my call. Sure, what's up? So my parents and my husband and myself, we have 529s for our kiddos. My parents had donated quite a bit of money over the years to it. And my middle kiddo graduated last year but ended up going into the military. So he had about $18,000, which wasn't a great big 529, so just about $18,000 in his account. But this first quarter of the year, he's taken about a $3,000 hit.

So his plans are he's going to do four years in the military. He's currently stationed overseas. He's going to do about four years in the military, come back out, go into the reserves, use all of his military benefits to go back to school when he gets home. So my question for you is, as the market plummets and we have it in the most conservative form we can, should we continue just to roll with it and keep it there for the next four years and see what happens? Or should we pull it, pay the taxes and the fees, which may or may not be less than what he's going to lose in the market,

and wait for him to get home in some other, you know, in a savings account or something like that. I would not do the latter. I would not take the tax hit to take this money out. I would just leave it in there, allow it to continue to grow. You can always change the beneficiary to someone else. I mean, it could be a grandchild. This can be way down the line. You can use the money to pay down student loans. And so there's a lot of options you have. It can be used for anyone in the family. So I would hang on to that. I would not take the tax hit. And there's a lot of things you can use it on for expenses. Even if, you know, I don't know what, does military, will that cover everything from

laptops, housing? Well, it'll give him, yeah, it will give him housing. He'll get a housing stipend. When my husband did it, he got a check every month that was went to pay for, you know, housing costs and those kinds of things. Laptop, not so much. He does have right now, he's, he's doing a whole lot better than his dad and I did. He's putting about $1,500 a month into his savings account, like shoving that in. So, yeah, he's doing a really great job. I'd leave it in there. There's a lot of qualified education expenses you can use it on. You can always change the beneficiary, but it's not worth it to take the tax hit on this.

Even if it's like losing money? You're not losing money by leaving it in. It's only a loss when you take it out. You got to ride the roller coaster. Gotcha. Ride it. Okay. That's what I want to do. I would keep it invested. I would not leave it on the cash side. I would leave that money invested. The market's going to come back. That money's going to grow and it can be used down the line. Yeah. Thank you so much for the call. Jackson, Tennessee. Shannon is up. Shannon, how can we help? Hi. It's such an honor to talk to both of you. I'm a big fan.

Thank you. So I am in Baby Step 2, and I have recently decided that I think I want to do a career change and maybe go to a technical school to become a software developer. Okay. And obviously not doing any loans for that. I'm going to cash flow it, but I'm wondering if I should kind of add that into my debt snowball since it will make me more money once I'm done, or if I should wait until I'm debt free. What do you mean by add it to the debt snowball? Just kind of like cash flow that to get it started and then, um,

but you said you're cash flowing it kind of as I came on my debt. But you said you're cash flowing it, therefore you're not going into debt? Right. It's just the way she's describing it. So she's working her debt snowball. She wants to know should she cash flow this technical training because it's going to make her a lot more money. How much money is it going to cost you? I'm thinking somewhere between $4,000 to $8,000. Okay.

And how much debt do you have? About $13,000. What's your income currently? Right at $50,000. Awesome. Would you be able to continue to make progress on the debt while cash flowing this technical certification? I think so.

My expenses are pretty low, so I've got quite a bit to work with as far as my debt snowball goes. And I don't know exactly how it works, if I have to pay all of it up front or if it would be like kind of a, you know, maybe make a payment to get started and make payments as I'm in it. I don't really know. I haven't done that much research yet. Okay. But I don't think that it should put me any farther behind than maybe like a month.

To cash flow the school? Yeah. No, I'm sorry. It will probably not put me behind any more than two months. Okay. Well, my A1 is going to be cash flowing this program. If you are for certain that it's going to increase your income on the other side as soon as you're done to spend this $4,000 to $8,000. And so if you need to pause the debt

snowball temporarily while you get through school debt-free, I'm all for that. Okay. Yep. I would agree. It's just like we have people that stand on this debt-free stage all the time that tell us how much debt they paid off and how many months, and this is while cash flowing other things. So you can move through the debt and cash flow other important things. This is as important as it gets, but do your homework. Do your homework on this to make sure you know what the payment situation looks like. Tell them you're going to pay cash. Maybe they give you a discount for paying cash, even if you're cash flowing and kind of going on a monthly basis. But yeah, go forward. Full steam ahead on this. I love that decision. I love that decision.

Let's get to Jasmine, if we can. In Atlanta, Georgia. Jasmine, how can we help? Hi, how are you guys today? We are doing well. How can we help you? Good. I will warn you guys, I'm a little nervous. That's okay. You sound great already, so go for it. Perfect. Thanks. So I just need help with figuring out what to do next. So my husband and I, we've moved into his parents' house with our two children to save money and pay off debt. But now that we've moved in, we realized that it wasn't a good idea. Yeah. And so we need help figuring out what to do next. We have a car that we'd like to sell, but after selling it, I think we would only have about $3,000 after paying the loan.

We have $45,000 in it. Hold on one second. I want George to get on the money thing real quick. We have $45,000 in it. Hold on, hold on one second. I want George to get on the money thing real quick. We've got about two and a half minutes, but what's going on with, we've been there a couple of months and we know it's not a good idea now. What's the tension there? It's a little toxic. There's a lot of like yelling and just, they have two other, my husband has two younger siblings. There's a lot of yelling with them and stuff. And I just don't want my kids to be in that environment. It's a lot stressful for me as well.

Does your husband agree with that? Yes, he does agree. Well, what they're doing, he doesn't agree, but he also wants to leave. But the thing is, we don't have anything saved to move out. So we don't really know what to do. What's your income? Our household income is $106,000. So for $106,000, could you not rent somewhere reasonable and keep it at around a quarter of your take-home pay?

Well, we have nothing saved, and we are paying them rent as well. Why do you have to have something saved? I'm talking about using your future paychecks to pay for rent. Yeah. Oh, I mean, yeah, I guess we could do that. I mean, well, we're looking for places to live, and, you know, they do ask for, you know, like first, last, and, you know, security, which we don't have any of that right now.

But you could. You could within a month, right? I guess that's true, yes. You've got to get out of it. Should I do anything like with my... Yeah, we do. I would use this toxicity as fuel to stack up as much cash as possible and get out of this thing. And yes, sell the car if it's worth more than the loan.

You said you'll net $3,000? Yes. What other debt do you have? I kind of need a car too. School loans and just credit cards, stuff like that. Okay. Well, with the profits you have left over, you're going to get a beater car for now. Is this the only car you have as a family?

Yes. Okay. So I'd stack up some cash. You may not be able to do it for $3,000. So stack up some cash in the meantime. Then your next job is going to be to stack up cash to get out of there and rent somewhere reasonable as you start to pay off this debt. Okay.

You can do this, Jasmine. You may have to put up with it for another 30 or 60 days, Max. But if you get, as George says— Get a pair of noise-canceling headphones. That'll help with the yelling. That's a good call. It's an idea. Get the kids out of the house for a while. I mean, there's a way to avoid this and give yourself enough ramp-up time to be able to move out and move out well.

You guys can do this. You're so close. Way to go. Oh, boy. Sounds like we've got some monster in the walls. Oh, that's a good one. I haven't heard that one before. It's a great movie.

You should watch it with Whitney sometime. Hey, I want to thank George Cannell. Always plus Kyle. I want to thank our team behind the glass for all they do. We want to thank you, America, because this is your show. It is The Ramsey Show. Do you love a good day, friend?

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