The Ramsey Show - App - What an IRA Really Means (Hour 2)

Episode Date: August 30, 2019

Insurance, Debt   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 

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. This is your show. It's a show about common sense for your dollars and cents, God's and Grandma's ways of handling money, ancient wisdom. Common sense. Yeah, learning to say no to yourself so you can say yes to others later. Hard to be generous when you're a broke person, have you noticed? When you're a broke person because you keep

buying stuff that you can't afford with money that you don't have to impress people that you don't really like. And this show is all about waking up the culture in that regard. So thanks for joining us. Open phones at 888-825-5225. Trey starts off this hour in Sacramento. Hi, Trey. How are you? Hi. Hey, Ramsey. How are you? Better than I deserve. How are you?

Actually, I have been, because of the path of Bill Carlson in Sacramento, I've been involved in your institution for about 10 years now. Oh, my goodness. Yeah, and it paid off. The material was well worth it. Well, thank you. How can I help today? I think you should increase it, just a side note. So I went to Geico insurance agency itself says, well, due to the clause in my loan, car loan, uh, I couldn't raise my deduct with any higher than 500. I never knew that. I've never seen that before, but I don't doubt it's there. They're trying to make sure that they're, the bank's trying to make sure that the car that they own more than you own is actually insured to where it gets replaced if something happens.

So how much do you owe on this car? Actually, I owe $20,000 on it. Wow. Okay. So when are you going to get it paid off? Well, see, that's it. Paying off would have been by December. But if you read the clause, if you pay it off before a year, then the gap is not covered. The gap? What gap?

What gap is not covered? So there's a thing, well, when you purchase a car, they have it where you pay your insurance, and then it's assessing at the gap. There's gap insurance that says if your car gets totaled and you owe more on it than it's worth, the gap insurance covers the difference. That doesn't matter if you pay the car off. Okay. Okay. And I'm glad we had this conversation so yeah

if you get paid off by december then you can set the dadgum deductible at whatever you want it to be at and uh the way to look at your deductible properly trey is um you know shop it with an insurance broker go to davramsey.com click on ELP for car and homeowners insurance there, get with a broker in your area. They'll shop several different companies. Now, if you're going to raise your deductible from $500 to, say, $1,000, you're going to take $500 and more risk. And the way you decide if you want to do that is you look at the savings of premium that that creates if that creates uh five dollars a year in savings it would take 500 years to break even i don't think we'll do that okay it's 500 right savings i know it take a hundred years to break even i'm sorry my

math was bad either way we're not driving the car that long. But if it saves you $300 a year by raising your deductible by $500, then you only got to drive the car a year and a half, two years, to be actually making money even if you had a wreck after that. So you measure the extra risk you're taking against the premium savings and that's called a break-even analysis and you look and say am i going to drive the car that long without a wreck on average and um you know you just kind of look at you know are you accident prone or not that kind of a stuff but you know if you can make your money back on the deductible in under five years, usually it makes sense to do it if you break even on that.

And that's the way you look at how high to raise your deductible. And I've run that analysis sometimes, and it's 10 or 15 years you've got to go without having a wreck before you make your money back. I'll let them take the risk for that. I'm not planning on having any wrecks, but 10 or 15 years, I've seen the way some of the rest of you drive while you're eating and texting and putting on your makeup and combing your hair and everything else. And one of you is going to hit me probably during that 10 or 15 years. So I'm going to go ahead and carry that extra deductible. Valerie's with us in New York.

Hi, Valerie, how are you? I'm excellent, thank ahead and carry that extra deductible. Valerie's with us in New York. Hi, Valerie. How are you? I'm excellent. Thank you. How are you? Better off. Better than I deserve. How can I help?

I have a question about credit card debt and settling it versus bankruptcy versus paying in full. Okay. I have a very large amount of credit card debt, a car loan, a consolidation loan, and a student loan. I am trying to pay those things off. Good. I'm going through a divorce. I'm going to get a sum of money from being bought out of my home.

Uh-huh. So I potentially could pay everything in full and be at zero. Good. My question is whether or not, I'm trying to salvage my credit score, obviously, because I would like to be in a position in a few years where I could purchase my own home. So I guess I'm wondering the difference between settling some of these credit card accounts and having some money left in the bank instead of being at zero. How much credit card debt have you got? Probably a little over $40,000. Okay. And how much in the consolidation loan? The consolidation loan is about $3,700 left. Okay. And what about the other loan? Was it a car loan?

The car loan is $16,000. Okay. And how much is the sum of money? I'm going to get around $80,000. Okay. My student loan, I'm hoping, is going to qualify right about now for loan forgiveness. I've paid it on time for 10 years with no issues, and I'm in the field of my degree. I'm hoping that I qualify for that.

I'm in the process of that. So hopefully that can be cleared. What's the balance? On the student loan? I don't know off the top of my head. Okay. Just automatically for so many years. To answer your question, your credit bureau reporter or your credit score has to do with did you pay the accounts as agreed?

Right. So my credit report, my score is low because of the amount of debt that I have. Yeah, but if you don't pay the debt. I have paid every single thing consistently. If you don't pay the debt in any form, you're going to lower it substantially. Bankruptcy is going to keep you from buying a home for several years. So bankruptcy is off the table. Everything is paid on time.

You have the money to pay the bill. So bankruptcy is off the table. It's not even up for discussion. The only thing is, do you settle a debt for less than is owed? And basically, let's say that I owed you $10,000, and I had the money to pay you, but I hadn't paid you in a while, and you didn't think you were going to get your money. And then I said, hey, would you take $3,000? You went, yeah, because I'm probably not getting anything anyway.

But that's not going to make you real happy, because you didn't get your $10,000 that was owed to you. That's the way the credit card companies feel, too. Actually, they don't have feelings, but that's the way it reacts on on your credit bureau report so just pay it all in full is what you do are high health care costs getting you down are you confused trying to navigate your options do you wish you could find an affordable biblical solution to your health care costs? Based on New Testament principles, Christian Health Care Ministries, or CHM, helps Christian families, churches, and ministries join together as the body of Christ to share their major health care costs.

Christian Health Care Ministries is the original health cost-sharing ministry. A Better Business Bureau-accredited organization, CHM members share to pay each other's medical bills. It's not insurance. It's Christians financially and spiritually supporting each other. It's what Christian Healthcare Ministries has done for over 35 years, and our members have shared over $2.5 billion in medical bills. To learn more, visit chministries.org. That's chministries.org. Christian Healthcare Ministries is a proud sponsor of Dave Ramsey Live Events. chministries.org. Thank you for joining us, America. This is the Dave Ramsey Show.

We're glad you're here. Open phones at 888-825-5225. Andy is on Twitter. Dave, is an individual allowed to have multiple Roth IRAs? Absolutely. You cannot put more than $5,500 into an IRA, an individual retirement arrangement, in a year. But hypothetically, you could have $ 5,500 one dollar IRAs I'm not sure you could find anybody to open those but um the law doesn't stipulate how many of them it's just the total amount in

the words you could put like 3,001 2,500 in another if you wanted to and so um or you can open one IRA with an investment broker and put it in various investments, like we suggest, spreading it across four types of mutual funds, growth, growth and income, aggressive growth, and international. And you can do that oftentimes in one IRA, but multiple investments inside the IRA. And the Roth, of course, means it's growing completely tax-free. Now, sometimes people say the IRA stands for an individual retirement account. It does not.

In the actual law, in the IRS code, it says individual retirement arrangement, which helps you distinguish what this really means. An IRA is not an investment. It is the way your investment is treated for taxes. So if you take your investment and say, that's the cookie jar, the IRA is the coat you put around the cookie jar to keep it warm. If you set the cookie jar out in the cold, it gets taxed. In other words, if you buy a mutual fund and it doesn't have a coat around it, it doesn't

have an IRA around it, it gets taxed. But if you wrap it up in a code called an individual retirement arrangement, an IRA, a Roth, it grows tax-free. If it's a traditional, it grows tax-deferred, and you take the tax deduction for the amount you put in. But that's all it is. So, you know, you can have an IRA at a bank with a lousy cookie jar, meaning like a 1% rate of return or a savings account rate of return. You can have an IRA in good growth stock mutual funds like we talk about, but you can put lots of different things inside the coat, lots of different kinds of investments inside the coat. So an IRA does not mean a certain kind of investment.

I've got a bad IRA. I've got a good one. No. You have a good or a bad investment inside of your individual retirement arrangement. So your IRA is simply the way it's being treated. Same thing with your 401K. 401K, where did that come from? It's Section 401 of the IRS Code, subsection K.

And when you look it up, it's got the, you know, Section 401, and it's A, B, C, D, E, F, G, all the way down to K. And K is the one that allows employers to hold money out with your permission of your check, hold money out of your check with your permission, and put it into an investment that you choose. And then there's lots and lots of rules that employers have to perform in order to do that properly under the ERISA rules. But that's where it comes from.

That's where all these weird numbers come from. The same thing with 403B. If you work for a hospital or a nonprofit, a 403B is Section 403 of the IRS Code, Subsection B. It addresses nonprofits and hospitals and a couple of other things, government. If you're a government employee, you'll have a 403B. But it works like an IRA or works like a 401K. They all work.

It's just the way your investment is treated. So inside your 403B, you could buy really crappy insurance type investments. And some of your teachers have, as an example, some of your nurses and doctors have been sold some crappy stuff inside these 403Bs. But you don't have a bad 403B, you have bad investment inside your 403B. So if your mutual funds are underperforming, whether or not they're in a retirement arrangement of some kind, that's when you look at the actual investment and you make the adjustments. So yeah, you can have multiple accounts as long as they don't total more than the annual limit. The annual limit's $5,500, $5,500. If you're married, you can do another $5,500 whether or not your spouse has an earned income.

You have to have an earned income, meaning you cannot live off of disability income or investment income. So you have to have self-employed income or wages of some kind that is, quote, an earned income in order to do an IRA. So if someone's living on disability, they cannot do an IRA. If they have 100% disability, then you can't do one. Now, you can do other investments, and you should look at that. That would be the plan, right? But you can't do an IRA because you don't have an earned income, quote, unquote. That's according to the way the IRS laws or the IRS regulations, rather, read.

Erica's with us in Houston. Hi, Erica. How are you? I'm a little stressed. How are you? I'm better than that. How can I help? I've gotten myself in kind of a bad situation.

I have a car loan of about $12,000. Sorry, I'm trying not to cry. That's okay. $12,000 car loan. What else? I've got about $8,000 in credit cards. And I am currently unemployed. I'm looking very aggressively for a job.

I actually applied for some of your jobs this morning when I saw it on your website. But my parents really are pushing me to go back to school and finish my degree and take out student loans to do that. And I just really, it doesn't make sense to me to take out more debt. I agree. Are these your only two debts? Yes are your only two debts? Yes. Okay. And what were you making? About $36,000. And when did you lose that job? In July. Okay.

All right. And you're how old? 27. Okay. And you're single? Yes, I am. And your parents live where? Nearby me. Okay. And you're single? Yes, I am. And your parents live where? Nearby me.

Okay. And are you living with them or are you trying to pay the apartment rent or whatever? No job. I am currently crashing on a friend's couch. Okay. Because I don't know what else to do. Right. Where were you living um i had a house leased with my boyfriend but we broke up

and the lease ended and i you see you don't you don't so you don't have that responsibility or that problem okay right a lot of volatility in your life right now kiddo i know why i can see why you're scared i understand what what is. What were you studying when you were in college? It's called integrative studies where you pick three fields. Mine were psychology, counseling, and business. Okay. And how far are you from finishing your degree? It would take me about a year.

Oh, good. Okay. That's good news. And what will it cost? I don't know. I'm sorry. That's okay. That's okay.

I think it's worth looking into to figure out what it would cost because you're that close to the finish line. I can see the tape. All you got to do is run through the line, right? I can see that. I can see that in the race. You're almost there. You're only a year away. My goodness.

Right now, it seems like a pile of money away and a problem away and all these other things. You're homeless and got car payments and credit cards and everything else. So I agree with you. I think you've got good gut instincts. I would not tell you to go into student loan debt. What I would tell you to do is start anything you can start today. You have a car. Let's deliver pizzas. Let's go find somebody and babysit for them. Let's start to get any kind of money we can get coming in quickly just to kind of get some of the panic away from you. Okay? Don't worry about your credit cards.

I don't want them to get behind, but if anything gets behind, it's those. You eat first. You pay your car payment and keep gas in at second, and you work at anything you can get work at immediately. Waiting tables. You can walk in. Houston's got a labor shortage right now. It's not hard to find work there. Now, you may not find what you're looking for, but I don't care if you're shoveling sawdust on a construction site.

You need to be working by Friday. Because it will make you some money and you won't have time to be scared. Okay? Then let's get you back into a little apartment. And then let's get your career moving again. And then go finish school with cash after you get to making a little bit better money. But your first goal is just get some kind of something coming in as quickly as possible to fend the fear off. And so, yeah, go right now to three pizza places.

And by the end of the day, you'll be delivering pizzas. You can make $1,500 a month delivering pizzas at night. And during the day, start driving Uber. You've just got two jobs just like that. Now, then you go from there, and we'll rebuild again. Is your house payment the only thing standing between you and debt freedom? Did you know we offer a free mortgage payoff calculator on our website? If the last thing you've got to pay off is your mortgage, we'll show you how. Show you how to get out of debt, period.

But if you just do that with the mortgage, we've got a mortgage payoff calculator on our website. You can find it under tools at DaveRamsey.com. You know the information about your loan and how much extra you plan to pay towards your principal balance. And then we'll show you how much money and how many years of mortgage payments that you save. If you've got too much house, well, our endorsed local providers, who are the top real estate agents in your area can help you navigate selling your current house and buying something that better fits your budget.

All of that at DaveRamsey.com Tiana is with us in California. Hi, Tiana. How are you? Hi, Dave. So good to talk to you. You too. Thank you so much for everything. Thank you so much for everything. Thank you. What can I help with?

Well, I'm a single mom. I've been living with my mom for the last couple years and recovering from some of my own stupid mistakes. And in the process of doing a little bit better financially, I've taken on some of my mom's debt as well because of sharing the home. So she has, she's in a chapter 13 bankruptcy and with only about nine months left on the payment plan. And then there's like the HOA payment. And we're coming out to be about, with her Social Security and my income, we're coming out short about $600 to $800 a month. And I've been juggling, like sometimes I short pay my car payment so that I can pay one of those other bills. What do you make a year? I make about $35 to $38 with overtime. And what net do you make a year? I make about $35,000 to $38,000 with overtime. And what debts do you have?

Student loan, about $10,000, and my car. How much do you owe on your car? About $9,000. Okay, so $19,000 and you make $38,000 a year. And what else? And then there's about seven, or I don't know how much exactly, but there's probably about between $5,000 and $7,000 on credit card stuff. Okay.

So if you were out of debt and on your own, how much debt does your mother, your mother's in a Chapter 13 coming out, which means that that will all be clear in nine months. Has she got any debt other than what's in the Chapter 13? No. Okay. And how much is her house payment in the 13? It is.

It's $324,000. Okay. And so she's paying a house payment of how much? About $1,400. And what how much? About $1,400. And what is her income? $1,200 a month. Okay, and how old is she? She's 70 years old.

Okay. She can't live in that house anymore? Okay. You can't have a $1,400 house payment with a $1,200 income. Okay. It doesn't work. What that means is you have to live there until she's 90 and pay her house payment. Yeah.

That's not going to work. Right. This is a really, really bad plan. I don't know how she got into this mess, but when she comes out of the Chapter 13 bankruptcy, her house payment will be $1,400 a month. It should be less. There's an extra.

She didn't pay property tax, so it should be $1,200, but they're charging $200 extra a month for the back payment on property tax. they're it should be 1200 but they're charging 200 extra a month for the back payment on property tax but her income is 1200 exactly yeah so does she have any money anywhere no she's in chapter 13 yeah no and she doesn't have anything she owns right other than this house no just the home what's. What's the house worth? It's actually worth, they came in and said that it could be worth about $600,000, but I've been trying to sell, and we're trying to look at it. We might look at it again after the Chapter 13 is over. I talked to her about downsizing because we've been listening to your show

and trying to get out of the situation. Here's what I want. I want you to be in your mother's life and loving her well, but I don't want you to design a financial plan that requires that you live together the rest of your life. Right. That's a bad plan would you agree yes okay so let's try to let's try to develop a plan for her and a plan for you and if the plan to get to those things is accelerated by you temporarily being together

that's fine but i don't want to put together a thing where you're dependent upon each other for your plans to work. So she needs to sell the house and buy a $300,000 paid-for condo that she can live in, and that means you're out on your own at that point, and we're going to get your income up and cut up your credit cards. We're going to put you into Financial Peace University. I'm going to pay for it, and we're going to walk you completely out of debt because you've got a bunch of debt and not a lot of income for Orange County, California. Agreed?

Right. I have a certification coming up that my employer agreed to pay for, so I should be making more. Good. What are you getting your cert in? In a certified professional coder. Okay, good. So you're doing technical stuff and you're getting your certifications around that. Right, right.

You keep doing that as fast as you can do it and get as many of those as you can get and keep getting those raises because that's going to cause your income to double in the next three years yeah if you keep pushing on that this is just the first certification you want you to get then i want you to go get some more of them and keep your employer paying for them and keep growing and growing and growing and growing because that's going to solve your problem that's very good news okay now if you guys want to stay there for the next nine months until you she comes out of 13 and then she sells and that helps you get out of debt that's fine but it sounds to me like you you would be better off and she would be better off if she sold it now i we talked to a realtor i mean i'm we only talked to one, but, and he was, he was saying it could be complicated,

not impossible with the Chapter 13. You need a new realtor. It's not a big deal. Chapter 13s take payoff letters every day. Okay. As soon as you get the, as soon as you get a closing and you got a $600,000 check in your hand to pay off a $300,000 loan, that's really not rocket science. Okay.

It can be done. Because otherwise you are going to be paying like $600,000, $700,000 out of your pocket in order to live there, right? Right. I don't know. That sounds like it's expensive to me. Yeah. I mean, maybe you want to pull that off maybe you

want to work an extra job in order to do that for nine months uh and then sell it it's okay you can do either one but really a year from today y'all aren't don't need to be living together yeah this is not good for either one of you are you catching on yes and not because i don't love your mother and you don't love your mother. We want her to be taken care of and we want you to be taken care of. But this thing of joining together and staying in denial about this house is a bad plan. This house is gone. She can't afford it.

You can't have a $1,400 or a $1,200 house payment when your income is $1,200. I mean, everyone knows that. And now you do. So now everyone does. So, yeah, get her sold and then get you a place and get your income up and you work your debt snowball. Hold on, I'll have Kelly pick up. I'll put you into Financial Peace University. We'll help you on your journey because you've got a difficult one

for the next 12 months. After that, it's going to get better and better and better and better and better and better. Cut up your credit cards today, all of them. It's time for plastic surgery. You cannot live on debt around there anymore. This is a family trait that needs to be broken today. Hope that helps you, kiddo. You call me if I can help you.

That's what we're here for. This is The Dave Ramsey Show. Thank you. Helen is in Boston. Hi, Helen. How are you? I'm good, sir. How are you? Better than I deserve. How can I help? Okay. Here, Helen. How are you? I'm good, sir. How are you? Better than I deserve. How can I help?

Okay. Here's a doozy for you. Thank you so much for taking my call, by the way. Sure. I'm a military spouse of a retiree, mother of five, about to get a divorce after 20 years. I am still waiting on the order for child support. I just got my third job to make ends meet. I start that in September.

I am drowning, to say the least, with the five kids eating me out of house and home. You have five kids at home? Yes, sir. After 20 years of marriage? Yes, sir. How old are they? I fell asleep. How old are they?

Eight, 10, 14, 19, and 25. Why is the 25-year-old at home? Because I'm trying to kick that one to the military. The 19-year-old already went and came back. He's a paralegal in the Army Reserves. So the 25-year-old, he's, you know, paying his share, and I'm trying to get that one to grow up. Okay. Okay.

So you have three kids, and you have two adults. Three little ones, yeah. And you have two adults. Yes, sir. And so they can take care of themselves if they have to. Yes, sir. That helps with the drowning. Okay.

Yes, sir. We currently live on military housing, and because my husband's a retiree, he just moved out last month. Now, I have about $103,000 in debt. $70,000, let's see, I'm sorry, $66,000 is with the student loans. $11,700 is with a car that my husband's been paying for that now I'm pretty sure I'm going to have to take over, and it has two more years of payments. I have a credit card debt of $25,000, and my lawyer's fees are $3,000 and growing, and I've already given this guy like $8,000. Of course, I had to put it on a credit card because I don't have any money. Now I'm doing my best to work. That's why I got three jobs. You've been married 20 years. How old are you? I'm 45. When did he move out?

Last month, three weeks ago. Three weeks ago. And the child support is, I barely got $300 two weeks ago. So it's my turn to pay the rent September 1st. I have no idea how it's going to come about, but through the grace of God, how he's been getting me through all this, I'm a nurse. And I know that if you have, if you're a nurse and you have an income, how come you can't pay the rent? I've never paid the rent. My husband has always paid it, and I just became a nurse two years ago. Okay, but I mean... And so I've been trying to pay off my debt.

Do you work as a nurse? Yes, sir. Okay. Let's stop that. Okay. When you're in a mess financially, what you do is you take care of what we call the you protect the four walls of your household before you do anything so here's your here's your order of priorities and you have enough money to do these four things okay you're

going to take care of food first yes sir you eat the kids eat period you don't eat out nobody in this house has a rent has made eat out okay you are not writing any checks at all for this 19 year old or this 25 year old yes sir they bring money to the table or they move out. They don't have a choice. Their dad left. Yes, sir. You can't support them. Because you have a responsibility to the minor children. Okay. Okay.

So food is first. Lights and water second. You have the money to do those two things. Rent is third. You have the money to do all three of those things. And then you keep lights and you keep gas in the car. Is there another car? No, just one vehicle.

One he drove off in? He has his own car. He has his own car? Yes, sir. Well, you're married, so we have a car. I don't care whose name's on it. Is that car paid for? It's got two more years and it's got eleven thousand so that's the one you said it's what you said you got stuck with what's the other

car no the other one's paid off his is paid off mine that's the one i want he bought for okay the one for our family that he bought uh is eleven thousand seven. He didn't buy nothing. We bought it. We are married legally. Yes, sir. Your attorney needs to explain that to him. He doesn't get to choose this. You get to choose this.

You're the one with kids coming out your ears. Right. Currently, what the order was was for him to pay 72% and myself 28%. Okay. And that was just two months ago, so. Okay, then pay it. Yeah, then he needs to pay it. Has he been paying it?

Right. No. Okay, then have your attorney put him in jail for contempt of court. Contempt, yeah. That was the next one. Yeah, immediately. Because he's not supporting his family. Nope.

You do not get to just walk off legally in this country. Not when you have an income, okay? Yes, sir. That's the attorney's job is to get this money coming in. So we're going to pay your portion of the car payment or pay the car payment, one of the two, and keep the gas in the car so you can go to work. If you just eat, keep lights on, pay the rent, and keep the car afloat, the rest of this stuff we'll get to over time.

Right now you're in the middle of 20 years' worth of emotion, and you're in the middle of fear and anger and all this stuff going on. I'm very angry. And all this stuff is overwhelming. And so what I'm teaching you to do is to concentrate on the simple, most important things and let the other stuff sit on a shelf for right now. Yes, sir. Who's got $60,000 worth of student loan debt? You, 20 years after marriage?

Yeah, it's all in my name. How? Because even though we used it together, you know, sometimes we needed it. 20 years ago? No, within 20 years. The past $10,000 was a student plus loan for my son. And the rest is mine that, you know, I've used for school and, you know, to buy groceries and whatever I needed throughout. Because we're a military.

We're always poor. And he was the only one working while i was going to school call the um job call the student loan people and put those student loans on hardship deferral i actually am only paying um they have me on twenty dollars a month and the other one's ten dollars a month and the other one's you can you can make that yes okay so what we're first going to do. All my bills are paid. The first goal is just to tread water. Then the second goal is we'll start to make some progress through these debts as we go along.

You're going to make it. Okay. You're going to make it. I am. I am. I just got to get through this hurdle. I'm going to be okay. I got it.

I got it. That's why I prepared for this. You do got it. I got it. That's why I prepared for this. You do got it. You got this. I can feel it. I do. Because you're tough. You just got the crap knocked out of you, and your head's spinning a little bit.

And that's okay. That's okay, because I have five kids keeping me going, and they are my reason for living. So I will do whatever is necessary. I think you're going to keep them going, probably, is the way it works. But listen, these two older ones, they just instantly grew up. They don't have a choice. They did. They did.

One's looking for a paralegal job. He just came home after his training. And the other one, it's just been a little struggle. But we're getting him there. He's 25. A lot of progress. He's 25. I don't want to hear about his struggle. I've just been. He's 25. I don't want to hear about his struggle.

I've just been hearing about your struggle. I don't want to hear about his. I want him. Dude, man up. Yes, you are correct. Like in the next 13 seconds, man up. That's what he's got to do. All right?

Yes, sir. It's time. Because mama's got enough dealing with a baby that's 25. Yes, sir. You are correct. All right. Now, listen. Not arguing with you.

Not arguing with you whatsoever. I know. Concentrate on the three little ones. Now, here's what we're going to do. You're making what as a nurse? Let's see. I just figured it all out. Let's see.

With my full-time job, I make $56,000. That's what I wanted to talk about. I don't want to talk about that. That's fine. And then you can pick up, if you're going to pick up extra jobs, pick them up as a nurse, like in the ER or something. That's where you can make the most money on your extra jobs if you've got to do some extra stuff in the meantime. You can make this on 56. What you've given me here, you're going to be okay.

Hold on. I'm going to put you through Financial Peace University. I'm going to put you in the one-year membership, and you can go through the class and take the 14-year-old with you and the 19-year-old if you want. I don't care. Let's teach everybody in this house so this never comes back to this house again. Hold on. Kelly will pick up.

He'll get you signed up. You're going to make it. You got the stuff, kiddo. This is the Dave Ramsey Show. Hey, it's Blake Thompson, Senior Executive Producer for the show. You know you can listen or watch anywhere with the Dave Ramsey Show app on your smartphone. Catch the full show or watch the highlights and check out Dave's upcoming guests.

Head to the app store and download it today.