The Ramsey Show - App - What Do I Do With Extra Income? (Hour 3)

Episode Date: July 3, 2020

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🎵 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. Thanks for being with us, America. We're glad you're here. Open phones at 888-825-5225. This is where common sense meets your dollars and cents.

Destiny is with us to start off this hour in Kansas City. Hi, Destiny. How are you? Hey, Dave. I'm doing well. Pleasure speaking to you. You too. How can I help? I have a quick kind of career-oriented question. I graduated from law school about four years ago, and for the first few years, I worked at like a mid-size firm, and I enjoyed it. I loved working with the clients. And about eight months ago, I transitioned to a really large firm, like 500-plus attorneys. And I'm not really loving the politics, and it just is a very, you know, wide environment. And I'm thinking about going into business for myself and starting my own firm.

So my question is, should I do that? And if so, kind of what's the best strategy to get there? Should I make short-term investments, stuff like that? Right. Great. Well, I'm an entrepreneur's entrepreneur i've been in business myself uh virtually my whole life uh at least adult life and so my first knee-jerk reaction is everybody should but that's probably not true but yeah i mean why not well why not is you need to investigate the components of this, because you're not unlike anyone else. When you own your own law firm, you have two things that you're doing.

One is just like when you own your own heating and air firm, or when you own your own beauty parlor or whatever, hairdressing salon, right? You have two things that you're doing. One is you're producing the revenue, producing the good or service, and in your case, you're practicing law. The second thing you're doing is you're operating a business. And so you're hiring and firing and doing marketing and doing accounting and thinking about advertising or not, in your case, depending on what you're doing. But, you know, client acquisition, whatever we want to put under that heading of marketing or sales or advertising or whatever it is, is a big deal. And sometimes someone who is a practitioner and is very, very good at what they do

aren't good at doing some of the business things. And so you have to say, how am I going to address those things? Because obviously it's kind of a no-brainer to say you can't just hang out a shingle and they line up around the block. Yeah. We have client acquisition in your case, would be the phrase I would use, and practice management. And so what type of law would you prefer to practice where you're doing that?

Right now I do civil litigation, so I'd probably say in civil litigation it's kind of a light practice. Yeah. Maybe eventually kind of specialize. Yeah, and there's not a lot of people that have the tone and tenor to enjoy the litigation process, and those that can are valuable. And so, I mean, I know several attorneys in our area here that are good litigators, and most people in the law field aren't, as you know already. Do you have any advice on, like, short-term investment for saving up for that?

Because I know I don't want to just go out on my own. So you've got to cover your household income while you don't have one right yeah it's not I wouldn't invest I would just save and so it's just like a money market account let's just pile up and say okay we think it's going to take nine months before um I mean I think it's going to take nine months before my income gets up to sustainability, and so I'm going to have to feed myself out of my savings account for nine months, and nine times my monthly expenses is X, and that's how much I need to pile up in a money market to make this leap. Great.

But that assumes that you can really do it in nine months. Now, that would tell me to go study some other people who have launched out into this in similar size cities. If you found someone that you knew in St. Louis, if you found someone that you knew in Columbus, Ohio or Nashville, they're not unlike Kansas City and how they're built. The cities aren't the size and so forth. And so, OK, if you had a friend from law school that had done the same kind of thing or you knew somebody that knew somebody, go visit them. Buy a plane ticket and fly to Columbus, Ohio, and spend a day with someone that two years ago did what you're doing.

And they'll say, oh, well, now this is what's going to happen. And you're going to go, really? You're studying best practices in terms of, you know, what is the best methodology to pull this off from someone who's actually done it. You're probably going to have trouble finding a litigator in your area, which is really what you need to find because it's going to be a different source of income than a real estate attorney or a different source of income than someone who's doing estate planning or that kind of stuff because it might take longer or not as long in those other areas of the law. And so that's what you're looking for is to try to find someone you can ask about

and not just do a wet finger in the air estimation of when you're actually going to start making money. The good news is you've been practicing law a while. And so you kind of can see what the cash flow looks like assuming you've got clients. And client acquisition would be the scariest part of this scenario for you. Hang on. I'm going to send you a copy of our business book, Entree Leadership, number one bestseller. It's how we grew our business from a card table in our living room.

It's our playbook, and it'll help you. It'll help you. It doesn't have all the answers for you, but it'll help you. Hey, thanks for calling in, Destiny. Matthew's with us in Atlanta, Georgia. Hi, Matthew. Welcome to the Dave Ramsey Show. Hi, Dave. How are you? you better than i deserve what's up my question is i got a new job that i was traveling out of town and i was stupid and i bought a truck and a camper which i really didn't

mean i've already sold the camper but now i have the truck i still owe like 20 000 on it i'm gonna be a little negative because of the miles that I put on it. But we're working now in a location that's closer to my home. So I actually get paid an additional $300 a week, and I can drive home. But what I'm wondering is, should I add the extra to the truck to pay and get rid of it or pay extra on a personal loan that I have that the $6,500 at a 23% interest rate. Who's got the loan with the truck? It's that Notre Dame Federal Credit Union.

Oh, goody. Okay. Well, I think, you know, have they got a local branch that you can sit down with? Not really. I'm from Georgia. Okay. I thought so. Well, I think what I'm going to do, how much upside down is the truck?

What do you owe on it, and what's it worth? I owe $20,660. We got it listed on the market at $17,000, so I'm going to be like $3,000 from there on. $3,000, $3,500. I'm assuming you have no money. No. Okay. I'd love for you to borrow $3,000 and sell the truck.

Okay. And then just work your debt snowball with all of your income. If you can't, then yeah, let's squeeze every dollar out of your budget, get the truck paid down, and get it dumped as fast as you can. Move as quickly as you can move in that regard. But, yeah, you're right. Hey, we've all done that. The good news is you never have to do it again.

Hey, hey, hey, hey, hey, hey, hey. Yeah. You know what it makes you if you've done something stupid with money? Over 12. Everybody has, baby. The trick is don't do the same dumb things twice, and slowly you start making progress. This is the Dave Ramsey Show. No matter what time of year it is, focusing on your family's financial plan is always a smart move. I get questions all the time about where to start and what to do first.

One of the most crucial and affordable first steps to take is to protect your family and get term life insurance. I know it's not glamorous, but all the other steps mean a lot less if something happens to you and your family has no financial protection. Getting term life insurance needs to be a top priority. I recommend 10 to 12 times your income and lock in rates for 15 to 20 years. This gives you plenty of time to get out of debt and build wealth. I've been recommending Zander Insurance for over 20 years and they understand and live this strategy. And will take the time to help you find the most affordable term life rates. Go to Zander.com or call 800-356-4282.

It's not that expensive, it's not complicated, and you need to do it now. Thanks for joining us, America. We're glad you're here. Open phones at 888-825-5225. Rebecca is in Indiana. Hi, Rebecca. Welcome to the Dave Ramsey Show. Hi, Dave. Thank you for taking my call.

Sure. What's up? I am a single mother of 13 and 3-year-old boys. I currently work part-time, and my job wants me to go full-time. However, my older son has chronic kidney disease and will most likely be needing to start dialysis within the next year. And if I went full-time, I would lose the health benefits that he gets through the state. And the benefits offered at my work would not even come close to covering that.

And I am not sure what to do about that. I feel really, really stuck. I also have about $30,000 of student loan debt. How are you eating now? I mean, you're working part-time raising two kids. Have you got child support coming? No, his dad left when he found out about his medical conditions. I was still pregnant, and he said he didn't want to deal with it,

and the next day he was gone, so he's not in the picture. No child support. He actually signed over his parental rights. So how are you eating on part-time income? We get food stamps. Uh-huh. Okay. And so his care that would not

be covered, that is currently covered by the state, were you to take full-time employment and take health insurance with your company, how much would that increase your costs out of pocket? It would be thousands of

dollars. What is thousands? Tens of thousands? Hundreds of thousands? Yes. Five thousand? Five thousand? Thirty thousand?

What would increase your cost? It would be about $30,000. Okay. And that's not including like a surgery. So unless your income went up, well, some of it would be covered, wouldn't it? Some of it would be, yes, but not all of it. I would have to come up with that much out of pocket. So you think it will increase your personal cost out of your pocket $30,000 if you did this? Yes, and especially when he gets to the point of needing dialysis or surgery.

And neither one of those would be covered? They would cover about 80%, but it would still be a big chunk for me not covered. I understand. Okay. I don't think you're dealing with real numbers. I think you're making these up while we're talking. I haven't crunched them in quite a while, you're right about that okay good let's let i want you to crunch them because you feel trapped and we need to figure a path out okay so here's how you do the analysis um what you've

got is a highly emotional stressful situation a mom with a child with a chronic illness if you didn't if you weren't stressed out by that you wouldn't be a good mom okay and that affects your decision making and so you have to pierce through all of the normal human emotions and actually do some math to help you make good decisions i'm not saying you shouldn't have these emotions you should have them you'd be a psychopath if you didn't okay but you need to go past that and say let's actually run the numbers talk to the talk to the hr department at your new company or the company, it's your current company, they just want you to go full-time, right? Yes.

Okay, talk to the HR department and say, I really want to go full-time. But I've got to look at the insurance aspects of what I've got covered now versus what I would have covered then. And help me run some actual math. And you all sit down together and go, okay, I really think, and you get some, you know, dialysis is going to cost X. Surgeries are going to cost Y. And I'm on an 80-20, and I've got a deductible, right? And so, you know, you can actually calculate out

what a good estimate of your increased out-of-pocket is. Does that make sense? Yes. Right now you think it's 30, but some of that's you haven't crunched in a while, and some of it's just I feel stuck and I feel overwhelmed by the whole situation. So let's run the actual numbers out. Now, then, if it is 30, let's just pretend that that's accurate for a second. If it is 30, then obviously you would have to increase your income more than $30,000 to justify doing this.

Yes. Otherwise, you can't do it until you figure out a way to make an extra $30,000, or you figure out a different job that has phenomenal insurance that's going to cover 100% and pays you full-time. Uh-huh. Now, there would be the home run, right? Yes. Which is usually going to be a big company or the government as an employer. And then also, how do I kind of navigate that with them? Because having the additional care of dialysis and things like that means I'd be taking time away from work.

It's a problem. It's a problem. So you've got to increase your income enough to cover your additional out-of-pocket expenses. The better the insurance program, the less you have to increase your income in order to create new extra money for your house, net of increased costs out of your pocket. But let's just pretend that you found a very flexible employer that would allow you to work some from home and some from work and work 40 to 50 hours a week, and they had 100% coverage for him. Well, there's your way out, right?

Is that easy to find? No no it's not easy to find no but it's it's better than where you're sitting today to be looking for it right and i talked to a lady in another hour which i haven't heard of this in years and so it's very unusual rebecca but she was in a government position and her health insurance cost her $6 a month out of pocket and had 100% coverage. It's unbelievable. That's just unheard of. That's like a unicorn, right? Yeah.

But that's what you're looking for. You're on a unicorn hunt. You've got to look for the highly unusual weird thing. It's not like you can just walk up and do anything. So I don't know if your current employer's numbers are going to crunch out and work what do you make with them now 22 a year okay and so if you went full-time what do you think you would make i'd be at about 31 well see that doesn't do it does it no not even close yeah not if it's 30 not if it's truly 30 out of pocket if you your 30 is accurate, it's not even close. I got that number because his last surgery was about $100,000, including the hospital stay. So I figured 80% of that covered.

20%. That leaves 20%. And then he has extra visits to specialists throughout the year, tests and that kind of thing. And just looking at some of the invoices, it'd probably be pretty close, somewhere in that ballpark. But I haven't crunched it. Well, the thing is, too, what is covered and what isn't when you get there and buy this policy. And you've just got to get into it with them. And insurance investigation is you're going to do the rest of your life to make sure it covers, to make sure it covers, to make sure it covers, to make sure it covers, to make sure it covers.

And so, you know, you've got to, you've got to do that. And you're right. If it is 22 to 31, if that's your only option in the world and it increases your cost 30, then you're stuck. But the good news is it's not your only option in the world and it increases your cost 30 then you're stuck but the good news is it's not your only option we start looking for a different position with more income and or better insurance coverage so that differential is not there that the differential becomes positive instead of negative in this description it's 18 000 negative uh but you know 12 000 increase in pay 30 000 increasing costs that's an 18 000 negative you wouldn't do that one it's $18,000 negative. But $12,000 increase in pay, $30,000 increase in costs,

that's an $18,000 negative. You wouldn't do that one. But if you could find something that was an $18,000 positive, that's the one you're going to do. And you can flip us the other way. So tough situation you're in there, kiddo. You call me back anytime. I'll help you any way I can.

We appreciate you being a listener. This is the Dave Ramsey Show. Субтитры подогнал «Симон» Did you guys know that we go through the top real estate agents in your area and we vet them? And if they are the top real estate agents in your area, they qualify to be an endorsed local provider. That means they're endorsed by us, they're local to you, and they provide you with help in real estate. These agents are committed to helping you find the right home for your budget without all the crazy and the drama. Don't take it from us. Listen to what one family had to say. They said, we finally decided we were ready to move. Our ELP came to our little 900-square-foot home, and she never made us feel any different from other clients that may have a million or multimillion-dollar home.

She gave us a lot of confidence in our plan, and I think the house sold the first day. Well, there you go. Hear the full story at DaveRamsey.com slash Gomez, and you can discover the difference that one of our endorsed local providers can make for you. Bianca is with us in Reno. Hey, welcome to the Dave Ramsey Show, Bianca. Hi, Dave. How are you doing?

Better than I deserve. How can I help? So I just started recently with the baby steps, and I have a line of credit that's like extremely high interest. It would be like my 11th debt out of 12. Um, but right now I'm paying $300 every two weeks and 185 of it is going to their feet and supposedly they have no interest. Um, where should I put that on my list? What's your interest rate on this? Yeah, that's what they say.

They have no interest, but they charge based on how much you owe. Right now I owe $3,000, and they charge $185 fee every two weeks. So this is a payday lender? It's called Elastic. I don't know. They say credit line, but I don't know. The numbers you're giving me are payday lender rates. This is 600-700% a year.

If I pay in order, it's going to take me another $3,000 just to pay in fees. What's your income? $92,000. Why in the fees. What's your income? $92,000. Why in the world did you ever walk into this place? Well, three years ago, my husband was almost killed by our neighbors, and instead of them being in jail, they went back home with a $300 fine for disturbing the peace. So we kind of had to abandon the house and leave everything behind and just move. Okay, so wait a minute.

Stop, stop, stop. It was three years ago. You make $92,000. Why do you have a $3,000 debt at 800% interest? Because, like, we still have medical bills for my husband, and he doesn't make any money. You make $92,000? Yes.

You make $92,000. Why do you have a $3,000 bill? Okay. One of the things you're going to have to stop doing is you're going to have to stop trying to figure out all these things that are going on. There's so much freaking drama in your life that you're going to have to just step back from all that and look at the numbers. Because all I'm hearing is $92,000 and $3,000, and I can't grasp why you haven't dealt with this before now. When it's 600% interest. So, yes, you put it at the top, but you get rid of it this month, not three years from

now. And I don't want to hear a drama story about why you didn't do it. Get it freaking done. Okay. Take care of business. I do have another question. Take care of business if you can. No, darling, I've got to move.

I'm sorry. All right, Daniel is with us in Orlando. Hi, Daniel. Welcome to the Dave Ramsey Show. Hi, Dave. How are you doing Ramsey Show. Hi, Dave. How are you doing? Better than I deserve. What's up?

It's great to hear. I'm in a very fortunate position of getting out of college debt-free because of my parents. So I'm going straight to step three. Great. My question is, after step three of the baby steps is I'm looking maybe within five years or after five years to go purchasing a home. Do you think investing in a Roth IRA for a first home purchase is a good investment? No, no, no, no, no.

We don't mess up Roth IRAs by cashing them out. We start those immediately and we leave them alone and let them grow tax-free. That's going to make you rich. You don't want to screw around with that thing. You want to buy a house with money you save to the side of that so once you're at baby step three you can either not save money and not do baby step four 15 for a short period of time like one or two years to save up your down payment not five years and um and then start your 15 of your income going into retirement or you can just start your 15 of income going into retirement, or you can just start your 15% of income going

into retirement and save two for your down payment. I don't care which, but I would not use a Roth IRA ever for a down payment on a house. Ever, ever, ever. Don't mess it up. Man, look at those numbers. That money is going to grow to such a huge pile completely tax-free if you don't screw around with it. Just put money in there and let it grow.

Joshua's with us in Ashland, Kentucky. Welcome to the Dave Ramsey Show, Joshua. Thank you, Mr. Ramsey. It's good to be talking to you. You too, sir. How can I help? Just a quick question. I work for a gym, and I've already helped set up a couple of programs there,

but it's not, they kind of worked it from where I would like it to be, and so I'm kind of trying to figure out how to either help it, try to grow that program to be able to help people or start it on my own. And I don't know where to begin as far as setting goals and even just getting started. So I'm trying to kind of like a health coach type thing with nutrition coaching and weight and exercise coaching. I'm just trying to figure out where to get started and how to get there. Great.

Very cool. I think you take the skills that you already have and you apply them to goal setting in business. And what that sounds like is my friend Henry Cloud calls your goal your desired future. How old are you? I'm 32. So when you're 42, what's your desired future with your career? I'd like to be able to be doing online coaching, have a flexible schedule, be able to work when the kids are at school,

and when the kids and the wife are home in the evening. Are you working for someone else in this dream, or are you working for yourself in this dream? I'd like to be working for myself in this dream. Okay, cool. Then that's your desired future, is to build a business that allows you to do what you just described. Okay? Now, if someone walks into your gym and signs up for you to be their coach, and they're out of shape,

their eating habits are poor they've not worked out ever um and they say my desired future is to look like you i need an eight pack right a 12 pack instead of a keg right and so um if that's what they say to you they say that's your desired future you first thing you tell them is well it's going to be a long road strap in it's going to be incremental progress and we're going to do the basics to lay a foundation am i am i correct is this what you're going to tell them and we're going to get some we're going to get you where you can breathe first so that you can exercise so that you can breathe so that you can exercise and we're going to really look at your food intake your caloric intake has to go down while your sweat level goes up

and your aerobic activity goes up, and then the weight will drop off and you'll start to beat it. But it doesn't happen quick or easy. It's an incremental step at a time. The tortoise wins the race, not the hare. Anybody who tells you that they can get a body like that in 90 days is lying. Am I correct? Yes, sir.

Same thing applies to your dream. We just set you a 10-year goal. Now, what is the first step to get to the 10-year goal? What's the second step? And then as we get more sophisticated, what's the next step? And what's the next step? And you named like three different things you were doing. One was online coaching.

One was in-person coaching. And one was flexibility around the family. I think I heard that right. And so you need to say, okay, which of those am i going to start with when i do start my own business in the meantime business level level number one might be to learn a bunch of these things while working for someone else and just get a really good income and a big pile of money because i'm gonna need a little money to start my first clip brick and mortar to start my first little gym i gotta have a little money to get that going oh maybe i don I don't do that. Maybe I start with in-home workouts with wealthy people who have their own gym.

And I become a concierge guy. And so that gets me out on my own, and I've got some flexibility. Oh, while I'm doing that at night, I can work on my online thing and start building that out. And you begin to study and think it through. But what you've got to do is lay out what your steps are, and then your steps will change over the next 10 years years but you still have that desired future that you're aiming at i mean you might make more progress or less progress in a workout program that would allow

you to change direction there you know you might have an injury that would keep you from certain types of workout program while you're trying to do this. I got a friend that was just training for Boston, screwed his back up, blew his Boston training out of the water. He's been bummed out. It was about six months ago that happened. So he'll have to do Boston another year. It was his desired future. That's his goal that you're setting. So you set it in front of you.

You adjust to the injuries. You adjust to the setbacks. You take the advantages and the things where you're going faster, and you run fast with those. And it's a go and start, go and start, go and start, go and start, slow down, go start, slow down. But we're always aiming at the same goal, and it's incremental progress, step-by-step strategy to get there. And that's how you lay this out, and it'll work for you. You can get going. Hold on.

I'm going to send you a copy of our business playbook called Entree Leadership, How We Grew Our Business. Our scripture of the day, Proverbs 21.3 To do what is right and just is more acceptable to the Lord than sacrifice. Dwight L. Moody said, If I take care of my character, my reputation will take care of me. Woo! There you go. Sonia's in Santa Cruz. Hi, Sonia. Welcome to the Dave Ramsey Show. Hello, Mr. Ramsey. How are you? Better than I deserve.

What's up? Good. So I had a question last year around August. My parents gifted a house to me. Wow. Basically taking over, well, kind of, taking over their remaining mortgage balance or principal and an equity loan that they had taken on the house because she got really sick and she had to go on disability and she could no longer make

the equity payment plus the mortgage payment. She ended up passing away in December. Yeah, so now I have this house and I live with my dad and I believe we're going to live together forever I have two kids single mom what I the balance on the house right now is 346,000 dollars and the value is 598,000 dollars and And I'm wondering, do we sell the house or do we keep it? I don't know what to do. I mean, I've budgeted. I make about $43,000 a year. How are you paying the payment?

My dad is receiving survivor's benefits. He receives about $2,000 a month. And I bring home about $2,800 a month. So you have $4,700, $4,800 a month to work with. And your house payments are how much? We don't have any. Oh, the house payments? Yeah.

$2,433, including insurance and taxes on the house you need to sell the house we need to sell it you cannot exist with the house payments 50 of your household income yeah you're not you're just barely holding on aren't you yeah very highly stressful yeah i think the only thing is that you know it's been our house or my mom's house. So we have all our memories over. It is very sad, but you can't afford it. I mean, there's no future here unless your income is going to double soon. I know.

I recently got an $800 increase raise in January. And we usually get a $5,000 bonus during the year. How old are you? I'm 35. How's your dad's health? He's very healthy. How old is he? 61.

61? 61, yes. And he receives a benefit survivor. What does he make a year working? He doesn't work. He spent the last three years taking care of my mom. And he receives a benefit survivor. What does he make a year working? He doesn't work. He spent the last three years taking care of my mom. Okay.

And she passed away in December. Mm-hmm. I'm sorry you guys are facing this. He needs to go to work. Yeah. Now. Okay. Y'all are starving to death.

Yeah. We don't really have a lot of fun. We just pay the bills. You can't even pay your bills, hardly. You're starving to death. Yeah. Yeah, we don't really have a lot of fun. We just pay the bills. You can't even pay your bills, hardly. You're starving to death. Well, I also receive $500 a month in child support. I have two kids. That's sweet, honey, but your house payment is 50% of your household income because your father has not gotten reemployed.

Yeah. Okay. He needs to get reemployed, and you'll probably need to sell the house. The house was deeded over to you? Yeah, it was. And since it was from a parent to a child, I believe the taxes will never change on it. The property taxes won't change, but you've got all kinds of tax problems with the income tax because they

did not do it properly. So you're very likely your dad could get hammered for about $30,000 or $40,000 worth of income tax called gift tax because they didn't do this. And you have another problem, and that is that the mortgages that you just took over do not allow you to do that. And they have the right to call those loans at any time to start foreclosure. You can't just take over someone's mortgages without the bank's permission, and they do not give permission to take over mortgages without qualification, and you did not qualify for these mortgages. mean everything's under i'm the borrower i'm the money i mean everything's

under my name no the mortgages did not transfer to your name no no they didn't because they would have called them if they figure out that this has happened, they have the right. They may not choose to, but they have the right to call the loan in full. So you guys are in a world of hurt here. So here's a couple things to do. And I want to try to get the stress off of you as best I can without you guys getting hammered. You need to go to DaveRamsey.com and do two things. One is click on ELP for real estate and talk to some real estate agents and let's get this house on the market before you get in trouble and lose it. It's got too much equity for you to lose.

The second thing that needs to happen is you need to click on ELP, endorsed local provider, for taxes, and you guys need to sit down with a tax professional and go file an amended return for your parents' income taxes last year immediately with a gift tax under the unified estate tax credit. And that way your dad and mom can transfer this much equity to you without having gift tax. But it has to be done with a form. If you come along and the IRS audits them four years from now and this has not been done, it'll be

taxed. All of that equity will be taxed at 55%. I'm talking about federal, not California. You're going to get hammered. You're going to get hammered. He's going to get hammered. And it's one form and a little bit of work to do this properly. So I would get the house on the market. I'm afraid the mortgages are going to be called and you guys can't afford it.

And I know it's sad, and I'm so sorry you're facing this, honey. But you're going to have to make some big girl decisions because you're in a big girl mess yeah okay and so get the taxes done with a tax professional it's called the unified estate tax credit get an amended return filed immediately and then let's start talking to a real estate agent

about getting this thing on the market and then let's lay out a game plan for our future of how we're going to eat and that is including your daddy going back to work now. Okay. Okay? Because your family can't make it in Santa Cruz, California. The cost of living is too high with what you guys have coming in without him working.

Yeah. Am I wrong? No, you're not. Okay. I'm not trying to be harsh with you. I just want to speak real clearly to you because I don't want any more pain in your life. You've had enough pain, okay? Yes.

Now, have you ever been through Financial Peace University? No. Do you want to go through as my guest and learn how to handle money and take your dad with you? Yes, please. Okay, good. And so you hold on, and I'll have kelly pick up and we'll get you signed up for that and then you call me if you need any help as you go along i don't want you to get stung here kiddo you guys have had enough pain with the loss of your mom and all

the stuff of him taking care of her and everything else it's just too much it's just too much to bear and we'll help you carry it but you you're going to have to make some big, grilled decisions. And they're hard to do. It's hard to do, but you're not left with a lot of options here. So this will give you motivation for cleaning up your life and your finances and getting on a plan that's sustainable, meaning you can pay the bills. Because you can't make it when your house payment is 50% of your take-home pay. I mean, you can make it short-term, but you just can't prosper with that. So, hey, hold on. Kelly will pick up, and we'll take care of you.

So, you're 16 million people listening. What do you take away from that call? Life insurance? Yeah. Will? Yeah. Proper tax advice before transferring assets? Yeah. Working and saving and getting out of debt and having a pile of money at retirement so we don't face any of those things? Yeah. Not putting her down. We've all been there. But you have to take away lessons from these things so that we don't repeat ourselves, you and me.

It's hard. It's really hard. That puts us out of the Dave Ramsey Show and the books. We'll be back with you before you know it. In the meantime, remember, there is ultimately only one way to financial peace, and that's to walk daily with the Prince of Peace, Christ Jesus. This is James Childs, producer of the Dave Ramsey Show. Did you know you can now listen to the Dave Ramsey Show on Pandora and Spotify?

For all the ways to watch and listen, check out our show page at DaveRamsey.com slash show.