The Ramsey Show - App - What We Can Learn From an Angry Morgan Wallen Fan (Hour 3)

Episode Date: April 28, 2023

Jade Warshaw & George Kamel answer your questions and discuss: "Should I get variable universal life insurance?" from the blog: Everything You Need to Know About Universal Life Insurance,  Angry Morgan Wallen fan sends singer $4K bill for canceled show, Teaching kids about the best way to save, from the blog: How Do I Teach My Kids How to Save? Pulling from retirement savings to pay off the house, "Can we afford to go on vacation?" "Are we dreaming too big?" Have a question for the show? Call 888-825-5225 Weekdays from 2-5pm ET Join a Personality-led FPU class. Click here! Enter The Ramsey Cash Giveaway for a chance at $3,000! https://bit.ly/TRSgvwy Shop our bestsellers during the $10 Sale! https://bit.ly/TRS10Sale Want a plan for your money? Find out where to start: https://bit.ly/3cEP4n6 Listen to all The Ramsey Network podcasts: https://bit.ly/3GxiXm6 Interested in advertising on The Ramsey Show? https://ter.li/s64ye3 Learn more about your ad choices. https://www.megaphone.fm/adchoices Ramsey Solutions Privacy Policy

МУЗЫКАЛЬНАЯ ЗАСТАВКА Live from the headquarters of Ramsey Solutions, broadcasting from the Pods Moving and Storage Studio, it's The Ramsey Show, where we help people build wealth, we help you do work that you love, and we're helping you build actual amazing relationships, not just TikTok and Facebook and Instagram relationships with friends that aren't real friends, George. They ain't helping you pay the bills.

Get rid of them. Get rid of them. I'm your host, Jade Warshaw. I'm joined by the ever lovable George Campbell. I love to see what the intro is going to be every hour. It's always a journey. You never know what it's going to be. Ever lovable is not something I've been see what the intro is going to be every hour it's always a journey you never know what it's going to ever lovable is not something i've been called before so i appreciate that that's that's what it is give us a call you know the number is triple eight

eight two five five two two five george will give you great advice he might get he might get a little snippy on you i'm i think you're more likely to get snippy i'll cut you a snark he'll cut you with the snark we're gonna cut you with a snark. We're going to take a call. We got Kara from Detroit, Michigan. What's going on, Kara? Hi there. I had inquired about long-term care insurance.

One option that I was introduced to is called Variable Universal Life Insurance Policy with a long-term care rider. So basically I could put a sum of money, say $75,000 in, it would be invested in mutual funds. I could allow it to grow for about 40 years. When and if I needed long-term care, that would get multiplied by four and that becomes the amount I can use for long-term care. So my question is, is this worth looking into or is this more on the whole life insurance side that you guys advise us to avoid? It is. It's more of the cash value whole life insurance side that we would tell you to avoid. But can I just say, I love that you're thinking about long-term care.

How old are you? I'm 45. I know it's early, but I'm just a little hyper-focused right now on getting all my ducks in a row due to some family storms that I've had. So it's just something I looked at, not really knowing when I should look. And then this was an option introduced to me because of my age. Yeah. You know, usually with long-term care, we suggest not even putting it into effect until the day you turn 60 years old. It tends to be pricey,

but that's the time where you want to lock it in. So you would be early to the game on that. And in the meantime, just pick up a term life insurance policy. Yeah, I do have that. So I really wasn't looking at this for the life insurance portion. It was more for the long-term care.

So I'm all set with the life insurance piece. I just wasn't sure if I should. Who sold you on this scam then? Well, I haven't proceeded with it. It's just something that was introduced to me. But where was it introduced from? Was it a person? Did you find it online? I'm just curious as to how you stumbled on it. Yep. A financial advisor. Are you single?

Yes. Okay. Can I just ask you a few questions? Because what I'm thinking here is, it sounds like you're kind of a savvy person who's trying to do the best they can with their money. Do you have any debt? I do not. You do not. Here's the thing. If you keep going the way you're going, you might be at the point where you could like self-insure through this. Like if you really, you know, by the time that point comes, if you keep going the way you're going, you might be at the point where you could like self-insure through this. Like if you really, you know, by the time that that point comes, if you're still,

you know, unmarried or, you know, maybe you do get married and he's got his money in order as well, you know, you might get on down the line and you have a couple million in retirement and you're able to self-insure through this. But I, and the way it's going it might be that way but i definitely wouldn't give my money to a universal life insurance for them to invest it at a crappy rate of return you know where you could invest your own money the same amount and get a much better rate of return and control what the money is invested in okay yeah okay i think what got me oh sorry continue continue where they say where they say it multiplies by four, I think that was kind of what... It's a lot of BS and empty false promises on their end, honestly.

Okay. You can do so much better investing yourself in the stock market through mutual funds than any return. Because guess what? They're getting their fair share through the super high maintenance fees, all kinds of fees that are baked in there. And so your cash value starts to get depleted. And over time, that premium keeps going up, which eats away at your cash value. And so it's a terrible, terrible scheme they're running over there. And your financial advisor is actually just an insurance agent that's cosplaying as a financial advisor. And so I would recommend you very politely, but firmly and kindly

fire them and find someone who has your best interest at heart. Because truthfully, anyone selling you a variable life insurance policy, it has their commissions at heart. Man, that's so true. And think about it. You're 45 years old. If you took whatever sum of money that you were going to invest in this, and you let it sit in the stock market for the next 20 years, the rate of return for the S&P 500 for 20 years has been about 98, what is it? 9.87%, somewhere around there is the average annualized return on that. So that's good to know that that's what you could, you know, if you find the right mutual funds to invest in, that's, I would rather do that and have control over it than give it to, you know, some joker who's in insurance but pretending to be, you know, some sort of investment advisor. Okay.

How's that make you feel? Good. I mean, I want to know the truth. You know, I don't want to, I don't want everything to just sound good when I'm, you know, looking to buy. Well, here's the good thing is we don't make a commission on this. We're just talking to you as good friends. And so I kind of feel like sometimes that's the one advantage we have, George, is we don't make a commission on giving you guys the advice.

We're just here to help. I'm so glad we're on the front end instead of you calling us saying, hey, I took out a variable universal life policy with a long-term rider, and now I feel like I got screwed. Help me get out of it. I'd much rather help you avoid it on the front end. Okay. You're doing a great job. So just stay the course. Don't fall for any traps. You're doing so well. And they're going to use kind of fear mongering tactics to tell you, you're not gonna

be able to afford this. You need us. You need this long-term care rider. You need this insurance policy. But the truth is they're going to eat up all of your wealth through fees and commissions that you are going to call us 10 years from now going, I can't retire because I put all my money into this stupid life insurance policy. That's true. This stuff drives me crazy. And I've actually been working on a piece for this for a YouTube channel. Let's hear it. And let me just tell you what's going on here.

So all of these universal life policies, they're now being pitched as wealth building tools. I know. I see it on. Yes, I see it all the time. There's a blonde girl and she's like, you know, you're supposed to use life insurance while you're alive. That's why it's called life.

It's called life insurance. And I'm like, that sounded just like her. Thank you. I do a great, I don't know what that says about me that I do a great annoying female, but there it is. So these policies are often sold to the naive. They're gullible. They're vulnerable.

And they're sold by these insurance salespeople who are using the title financial advisor red flag number one that's a lie yes i don't know how they're legally able to do that and here's the truth this is crazy i found out um the there it's not regulated and so it's up to the states to patrol this all of these life insurance scams out there and so they're pitched at with all these benefits, right? Risk-free growth, except they lose value due to the fees for years before they break even. So there's a floor, Jade. So they say, well, you can't lose money.

It's a 0% floor. Stock market's down. You don't lose any money. But guess what? When the stock market's up, you're capped. Yes. Good point, George. Please talk about that.

The market was up like 28% in 2021. But guess what? You had that life insurance policy. You were was up like 28% in 2021. But guess what? You had that life insurance policy. You were stuck at 7% growth. Yeah, 7%. And so it's insane. So on top of that, there's these tax-free inheritance, except your inheritance is already tax-free up to $11 million.

Infinite banking. You're just borrowing your own money with interest. How dumb are you to borrow your own money with interest? Don't fall for this, y'all. Run away. Term life is the only way to go. Invest the difference. Thank me later.

Yeah, insurance is not meant for you to build wealth on. Insurance is meant to replace your income for those who depend on your income so that if you pass away, you can still take care of them even after you're gone. That's the purpose of income or of insurance. It's not here to make you, you know, Scrooge McDuck out here. This is The Ramsey Show. income or from of insurance it's not here to make you you know scrooge mcduck out here this is the ramsey show you're listening to the ramsey show i'm your host ramsey personality jade warshaw joined by george camel and the number to call in if you want to talk about what's going on in your life and your money is 888-825-5225 now here's the thing i just want to stop for a moment george and say thank you

to all the folks who listen to the show maybe you're watching it on youtube maybe you're on that podcast thank you so much for listening to the show we hope we sincerely pray that this is helpful to you that it's helping you move the needle in your financial situation or at the very least that it's entertaining you you know on your drive you know to and from work if nothing else you know what does dave say some say the advice is worth what you pay for it but if you love the show we just want you to keep sharing it look we asked you a while back to start sharing the show and i feel like we went from like number 15 or 17 all the way up to number 11. You guys have really moved the needle and we're grateful for that.

So if you love the show, like it, like click the little like button or the little check mark, whatever it is on your platform that you're listening to it, share it with somebody else and just let somebody know how much you enjoy the show. We would sure enjoy that. And if you've never left a review, go ahead and leave a review for us as well um but just know make it nice please don't don't don't say anything rude because george you know he's a pit bull he'll he might don't come at me my people yeah he might bite your ankle on it so i'm more of a chihuahua that's what i'm saying biting the ankle that's like a pit bull like that's aggressive and scary a chihuahua is just like i ain't messing

with that thing all right i'll be the pit bull and you be the chihuahua. There we go. There we go. So George, yet again, you're bringing these. I can't help it. People send me this stuff on the internet and I go, this made me laugh. I want to share it with America and with you, Jade. Okay, what is it?

You have not seen this, but this is a headline that just tickled me. Angry Morgan Wallen fan sends the singer a four thousand dollar bill for a canceled show so if you don't know morgan wallen is a is a big country singer out there what's one of his songs i couldn't tell you jade i don't listen to that okay okay i just want to check because i don't know who the heck this is i don't know but he's a big country singer he was on the voice or something like season six which again i don't watch that show so this woman though so morgan wallen everyone's sitting there at the concert and on the screen appears this message saying morgan wallen has lost his voice he can no longer perform get your refunds at point of purchase oh so everyone who

has traveled to this concert paid all this money is now very upset because they only get the ticket price back they get the ticket price back and so one woman named mandy who attended the concert posted on facebook and tagged the singer and with her express wish to pay for everything from their outfits to gas and so she said since you're offering refunds here's our itemized bill for you and she listed out on her facebook post whoa the expenses we'll put it on the screen if you're watching on youtube hotel 560 dollars makes sense okay okay tracking so far gas two tanks 80 bucks okay hotel gas okay four tickets 1600 bucks who's paying 400 to see morgan wallen i truthfully don't know i don't know because i've never heard of the man that's some taylor swift money okay

400 my outfit 120 bucks husband's outfit 218 dollars oxford grillhouse 235 is that a restaurant cracker barrel 40 dollars los perileros 45 dollars rebel rags i don't know what that is but i don't want to go there i think because they wouldn't have the opportunity to go had it not been for the concert 629 dollars drinks at the concert before it started by the way the way, $220. Morgan Wallen merch, $235. Whoa! Grand total, Jade, $3,982. I got to take my shirt off. I got to take my jacket off.

Y'all, can you imagine billing an artist for $4,000 for your own stupidity, and she put her cash app right there in the post going, I'll expect my refund tomorrow. Thanks, bro. Thanks, bro? Yeah. And she ended it with some, there's some expletives in there it's a family-friendly show but she said my husband has gone with me to two concerts ever in the 17 years we've been together somehow i talked him into this one and this happens well she's got so what do you think is she entitled to a refund for all of the other expenses outside of her tickets um no she's got moxie she's got some grit there i'll give it i'll give her that but here's the thing

um yes it would be nice if they gave a little bit more than the ticket price here's as a vocalist i can say sometimes you just get laryngitis many times i've had to cancel two shows of my own volition in my life and i hated every moment and one of it because i had laryngitis many times i've had to cancel two shows of my own volition in my life and i hated every moment and one of it because i had laryngitis and everybody got back their ticket price but i just want to know and can you guys put in the comments wherever you're watching do you buy new outfits for a concert i didn't know this was a thing do you buy a whole new outfit now she's not on stage no one's looking at what she's wearing but she wants to feel cute okay and all the eating all the eating out they chose to do that morgan wallen didn't tell him that they

had to go to roadhouse or texas grill or wherever they went the most hilarious part is the cheapest expense on this whole list is cracker barrel so well represent cracker barrel beating inflation out there they're like we're gonna get our dumplings we're gonna make sure we get our chicken and dumplings you know i'm looking at it like you paid for a trip that you weren't expecting to take. Yeah, you did. And you missed out on the concert. You missed out on the concert.

You got your ticket price back. Well, she's getting her ticket price back. So $1,600 is back. So I think it's unfair to say that she's getting, she needs four grand back. She's already getting the $1,600 back. Yeah, I'm not mad at that. Look, it took Spunk for her to step to Morgangan wall and like that but i'm glad that she did it took spunk to admit

all of that spending happened within a 24 hour period i don't think i would be able to spend three grand in 24 hours no me neither i want to know her budget and the fact that she called him bro at the end is it's pretty special bro yeah drinks at the concert i mean what are y'all getting are they charging like 19 for bud light these days they're turning up oh god it's a lot for me so here's the here's the teaching out of this if there is one teach it uh posting on facebook maybe won't solve anything here's the my question is are people now going to send her money to her cash app as kind of a joke and she's now going to make like 20 grand this is going to be a go fund me moment so there's one wow but number two budget for your

trips and concerts and don't spend willy-nilly like if you're on a budget and you spent that that's fine clearly they were just spending willy-nilly probably putting this on credit cards that's right and here's another teaching point because this reminds me of the folks who were taking out 401k loans to go see beyonce heard about that. This, you can't do this. We can't spend $3,000 on a concert. Listen, you want to spend that kind of money to see Queen B, you're going to be broke. You're going to be broke.

Good job, George. Oh, man. Let's take a call. We got to take somebody's call. Matthew from San Antonio, Texas. Get us on track, buddy. Hey, how are you guys? What's going on?

Hey, so I'm trying to figure out, I have two high school kids, and I'm trying to figure out what kind of savings account that I need to set up for them for their future. And you guys have talked about compound interest savings accounts, and I don't know where to find one, and I don't know how much to put into it, or excuse me, how much they are going to be putting into it because we're trying to teach them better spending habits and things of that nature because mom and I are doing a financial piece as well.

Awesome. What are your thoughts? So this is for them to save money. This is not like college savings. This is just to help teach them about managing their own money. Do I understand that correctly teach them about their own managing their own money. Do I understand that correctly? Yeah, their college is already paid for. Okay. Awesome. That's exciting. And where are you guys at financially?

Well, we're in the army. I'm in the army, mom's stay at home. And we're working on our financial piece because we have three mortgages and we're just getting started. We're a couple months into it. Okay. Do you have any debt other than mortgages? About $18,000. All of our cards are paid for and just credit card debt. Okay. And how old are the kids? 17 and 15. Cool. And are they wanting to have this discussion or is this something you're wanting to teach them? Um, they're pretty financially driven, um, with this day and age and this generation. So we're kind of pushing it towards that and they're looking at, so when I told my daughter the potential that she has to be able, you know, in 20 years to be a millionaire, she went, her ears clicked up

and she was like, oh, really? And I'm just basically trying to teach my girls that they don't have to be financially dependent on a man or anything. Are they working right now? Do they have earned income? Yeah, so one of them is a babysitter and the other one has a job. My 17-year-old's got a job at a retail store. Love it. I think you open up a Roth IRA for them and they can watch that money grow very slowly over time.

And you can get with one of our SmartVestor pros at ramseysolutions.com. And they love teaching young people about compound interest, how to set this up, how to choose the right mutual funds. And I'm proud of you, man. That's awesome. Changing your family tree, a 15-year-old opening a Roth IRA. Okay. Let's go. I love that. And their college is paid for too, so they're going to come into the world with no debt. They're going to have so much money, they're going to just run out of places to give it away. Man, what a wonderful world.

This is The Ramsey Show. You are listening to The Ramsey Show. I'm your host, Ramsey personality, Jade Warshaw, joined by George Campbell, fellow Ramsey personality. Give us a call. The number is 888-825-5225. And we'll take your calls talking about your money situation, man. Maybe you're having issues with budgeting. Maybe your spouse is tripping and they're not on board with the plan.

Maybe your kids, whatever it is, is going on in your money situation. Give us a call. We want to talk about that. And let's go straight to the lines. Let's go to Bobby in Albuquerque, New Mexico. What's going on, Bobby? Hey, guys. I just had a question. Actually, Financial Peace saved my marriage about seven years ago. Wow. I owe a lot to you guys.

So cool. But, yeah, my wife and I, we've done your plan. We've been following it. About five years ago, I left my job, which I rolled my 401K over to an IRA. My current job that I have, you know, I have a fully funded 401K. I'm actually putting 10% on it. I'm also part of the National Guard, which I have five more years, and then I get that nice pension. Um, and then, so my question is, and we have no debt. Um, and my question is that IRA that has been sitting there, I think we lost like 15 K in the past, like couple of years. Um, would that be better to put it against, uh,

throw it against my mortgage? Cause we owe about 160, uh, left on our house last time uh we had it appraised during covid we got like a two percent uh rate uh now we owe uh 160 on it uh we get the zillow or testament or whatever home.com where they kind of measure it out it says it's worth like 350 i'm like i the way i look at it is i'm losing money on the ira and my home going up would it be good to you know cash out that ira take those penalties well you didn't lose any money in the ira you don't lose money unless you take it out yeah and it's not going to remain that way it's going to shift and go up at some point okay i can't time the market but i can tell you that it will uh 42 okay yeah and that's what i've been thinking too like yeah you know it was just one of those things i'm like do we do we want to pay off the house and be

completely debt free and you know just kind of right off in the sunset on that or here's the problem you're robbingbing Peter to pay Paul here because you are severing your retirement account if you do that. You're going to have income taxes plus a 10% early withdrawal penalty, all to have a paid-for house, but now you can't retire.

No, no. So this IRA is from a previous job, a 401k that I had. I still have my current job 401k that I'm still contributing that's fully funded and healthy it's still retirement savings though and you would still be on the hook would turn into if you just left it alone you're going to be punching yourself in the face no okay now here's the thing what's your what's your income I mean let's talk

you wanting to pay off your home is a good idea let's just talk about the right way to actually accomplish that so what's your what's your take-home pay so i make about 140 a year so how quickly can you pay off 160 yeah and then my uh my guard pay too so that's another like 10 grand so i guess like around 150 all right so let's let's make a plan that you're intentionally paying off this house well before, you know, well before schedule. Now, I did have one question. Did I hear you say that you're you said you have a fully funded retirement and you're contributing 10 percent? Did I hear that? Yeah. I'm at 401k. Yeah. So on baby step four, we would say contribute 15%. 15%, yeah, I think I missed that one. So I just wanted to throw that in there. Just, it was just something I heard off key, but. Oh, so, so yeah.

So the other five, I'm sorry. So I have all my notes here. Sorry. So I also have a TSP, which is, I guess, the military's version of that, which I do another 6% from military pay. Okay. So you're, okay. So you're at 16%.

Yeah. Okay. Got it. All all right thanks for clarifying that but yeah so with your income left over how quickly can you pay off this house with based on my estimations this thing's gone under three years this mortgage because what we do i mean since we refied or whatever, we were doing the whole 13th payment. And then we'd do like a lump sum, try to at the end of the year to try to get it paid off faster. Yeah, the three years. I would just put it on, if you can get it on auto pay. So every month you pay your mortgage, have extra on the principal every single month. And then see if you can up it for the next month and up it for the next month.

Because if you can start doubling up on mortgage payments every month yeah could you guys do that i think it's possible i think we could definitely do that uh you've got to decide yeah because my wife's a stay-at-home mom and you know we send the kids to school but like between like their uh uh college fund and everything else expenses. I mean, I'm pretty sure we can double up on payments. You've got to pick the right place to feel the pain. You wanted to pay off the home mortgage, which is a great idea. You were wanting to pull from the 401k,

not realizing how much pain that truly would cause you. And now George is suggesting another idea that's, you know, maybe a little bit more intense, also intentional. And there's a level of pain associated with that too, because it's like, wow, you know, now I'm seeing how I'm spending my money, I might have to cut back on certain areas if I truly want to get this home paid for quickly. And so just understand, there's pain on both sides. One is a good pain and one is like a stupid pain. So the pulling from the retirement, although you feel like you don't feel that pain, it's huge. But what George is suggesting, you're feeling that pain in the moment, but just know that that's

ultimately the smartest solution here because there's no negative drawback of it other than just you deciding, okay, I'm going to do this instead of that. There's no penalty. There's no fee. There's no, I wish I had, and there's no, definitely no loss of interest. Yeah. And go use our early mortgage payoff calculator at ramsaysolutions.com because based on my napkin math, you put four and a half grand a month towards the mortgage. It's gone in three years. You put five grand towards it. It's gone in two and a half years. And that will put some pep in your step where you can see the light at the end of the tunnel. Thanks for the call, Bobby. That's a great call. Yeah, I think that's just one of those things, George. I think sometimes people feel that urgency. They want to get something done really quickly in their finances.

And it's almost like you're just looking for any other option. Any shortcut you can find, even if it means paying later. I'll take some joy right now, but it's not the right way to do it. That's right. It's not the right way. I think we've got time for another call. Let's see. We've got Kate in Charlottesville, Virginia. What's going on, Kate?

Hey, Jade. Hey, George. It's so great to speak with you guys. You too. What's going on? Thanks. I'm calling because I wanted to know if my husband and I can go on vacation in March of 2024. Thank you for asking for our permission first. We appreciate that.

March of 24. Okay. Are you guys debt free? So that's kind of the question. I'm not sure if we're debt free or not. Debt is money that you owe to anyone for any reason. Okay. So really the only debt that we have is on land that we want to build a home on. Okay. All right. How much money do you guys have in the bank? We have about $75,000 in the bank.

Wow. What's left on this land loan? We owe $208,000. We want to throw $25,000 of that $75,000 at the land loan, make $25,000 of that our emergency fund, fully funded emergency fund. Okay. And then we have a little bit left for, I guess it is kind of like dead. We're just, we have money to pay off some work that was done, but the person hasn't collected yet. Okay. So we're holding back that 25. Good. For that person. What's your income? We bring home about $74,000 between the two of us. I am applying for more work at this point in time

after listening to you guys for the last couple of months. What's the vacation going to cost? We're thinking $7,000. $1,000? $1,000, yes. A year from now, basically. Yes. You know, the land is your only it's a music vacation

for those music lovers it's music wow hopefully not a Morgan Wallen concert here's the thing you've got this you've got this land I think that in 2024 hopefully you've made more more gone forward with it and paid off more of it.

If you're spending $7,000 on a vacation, make sure you're paying cash and make sure you've got that three to six months saved. That's what I would do. If it's above the emergency fund, it's not messing with your other goals. Pay cash for it. Don't put it on the credit card. Do use debit. You don't want to be paying for this vacation six months after you've taken it. I know, especially if they cancel the concert.

This is The Ramsey Show. You're listening to The Ramsey Show. I'm your host, Jade Warshaw, Ramsey personality. Sitting next to me on my right, George Campbell, fellow Ramsey show. I'm your host, Jade Warshaw, Ramsey personality. Sit next to me on my right, George Campbell, fellow Ramsey personality. And as always, we're taking calls here, man, your life, your money. Give us a call, 888-255-225, the scripture and quote of the day. But Jesus often withdrew to the wilderness for prayer. I love that. Sometimes you got to go to the wilderness. What was that from? Luke 5, 16. Yeah, I was that from? Luke 5.16.

Yeah, I remember that one. All right, we've also got this one. It says, thousands of tired, nerve-shaken, over-civilized people are beginning to find out going to the mountains is going home. That wilderness is a necessity. That's John Murr. Is that how you say that? Muir?

Muir. I got to get out more, Jade. I think that was shots fired from the team. I think it was. They're telling us we need to go on vacation and we need to go to the mountains, apparently. But I like that. Sometimes you do need to withdraw a little bit.

Get some fresh hair. Get a little bit of fresh air. And not to mention, you know, when it comes to kind of doing good habits and doing things for yourself, let me talk about this. It says, so you think you found your dream home, but before you sign those closing papers, make sure you steer clear of these common first-time

home buyer mistakes, navigating home buying with ease and avoid the pitfalls when it comes to buying your new home sweet home. So this is how you do that. You need to simply sign up at ramsaysolutions.com slash newsletter and go ahead and subscribe to our Sunday newsletter and learn how to avoid making these common home buyer mistakes. Guys, subscribe to that. Every month there's new tips, new things to just make your life easier. We have an amazing team that's churning out super helpful content. Yeah. I'm like, Google it, bro. We got great stuff. Honestly. Sitting right there on the ramsaysolutions.com website through the newsletter. So check it out. Yeah, it's a lot of stuff. It's really great. It your life better it'll help you it will help you learn all right let's

go to the phone lines again 888-825-5225 we've got jamie from saint george utah we were just over in the salt lake area what's going on in your world jamie hi so glad to talk to you guys thank you so much absolutely my my question is are are we too old and are we dreaming too big too late and the reason why I say this is because I have been been watching and listening to everything Ramsey for the last week and I went from gazelle focus totally excited to absolute fear because we have absolutely nothing, absolutely nothing. We have eight kids. We've already failed the oldest three. Um, although I hope to be able to teach them these things too, but we still have six younger ones. Um, and I like everything in me. I've, I haven't heard anybody with like our, our place. And,

um, I feel like I'm going to fail the budget. I've never done one before in my life. I haven't hurt anybody with our place. And I feel like I'm going to fail the budget. I've never done one before in my life. I'm just kind of like, I'm a stay-at-home mom and homeschooler. So I'm kind of like, are we too old? Are we too late? Is this going to happen? How old are you? Because you have the energy of a 17-year-old. Oh, thank you. I'll be 42 oh my gosh how are you still alive you're a newborn baby you should run for president you're so old who told you you were old at 40 jamie who told you that it was too late for you she's at home with these kids she is feeling it right now that's what it is these kids are running her ragged

well because i feel like i failed our older three already. We can't help them pay for any education whatsoever. Hey, hold on, hold on, hold on, hold on. I've heard you say the word fail too many times in this short period of time. And I want you to stop saying that. Okay. Nobody talks to our friend Jamie like that, especially not Jamie. Exactly. Stop using that word fail because life, we're learning out here. We're learning. Also, there's like a 75-year-old listening right now who's offended that you said you're old. Okay.

I know that's right. I'm so sorry to the 75-year-old. Let's roll this thing out because the goal is for us to debunk everything that you've just, all the fears that you've just laid out. So let's look at the finances here. You got eight kids. What's the household income? We're at about 55 right now. I'm currently looking for a job. I'm door dashing, trying to add as much income as I can while still being able to be at home. I mean, daycare is way too expensive for me to go out and get an outside job. Okay. So how much is the debt that you guys are facing?

$58,000. $58,000. What kind of debt is it? Give us the breakdown. We have $17,400 across seven credit cards. We have a $7,800 car note, $5,000 in medical, and my stupidity, $27,000 in student loans. How much in student loans again? Sorry, I was writing all that down. You had $27,000. $27,000 in student loans. All right. I thought you were going to say a lot more debt than what

you said. So I'm glad that it's $58,000 because look, here's the thing. It could be worse. It could be a lot worse. Your girl talking to you right now i paid off 460 000 and the income at the time when we started was 30 000 so when i tell you all things are possible all things are possible and it might require you it probably is going to require you to pick up some extra work whenever you can find it and i'm not going to sit over here and act like i know when that is because you've got eight kids and i've got two so whatever that looks like for you and your husband, if you want to get this done quickly, you do need to increase your income.

And you can start thinking about ways that you could do that. But in the meantime, you've been listening to us for the past few weeks. We're going to tell you what we tell everybody else to do. You got to walk through these baby steps. Thing one is you got to get that thousand dollars saved. I don't know if you've done that yet, but put aside a thousand dollars.

Most people can get it done in 30 days. If they're selling things going scorched earth, the kids let them know we're eating noodles with butter this month. Like that's what that's on the menu. Okay. And so that's what that looks like. And then we're going to do, we're going to work this debt through this debt snowball. We're going to list them smallest to largest, not by interest rate, balance only smallest

to largest. So your smallest balance looks like it's this medical debt, right? The 5K? Or is it a baby credit card? It's baby credit. We have like a 2700 to 1700. So... Good. You'll knock those out real fast. Yeah. It seems like that is definitely possible. Do y'all have any money outside of the thousand? I feel like you do. No, we have nothing. Nothing at all. Anything you can sell? Just a thousand. No, we don't really have many quality things. I mean, I could probably muster out, you know, four or five low cost things to sell. But other than that, not really. Okay. What's he doing for work? He's a city, he works for a city locating utilities under the ground.

Oh, okay. Yeah. And I hope, I mean, I've been looking for jobs like crazy and I'm hoping to be able to at least add up to 20,000 a year. Yes. From the jobs that I've been able to find. So, I mean, I'm no stranger to work. Yeah.

That's incredible. I think if you can do that, you've got able to find. So I mean, I'm no stranger to work. Yeah, that's incredible. I think if you can do that, you've got to do that. And you know, I take I've taken this question a couple of times, even on my Instagram, you know, sometimes dealing with single moms or people who are really just at the brink. And it's like, okay, there does come a point where it's like you're doing all that you can, you've taken all the extra jobs, it doesn't make sense to do this because of daycare, there does come a point where it's like, okay, I'm bringing in what I feel like is the amount of money. And then you just got to ride it out, man. That at some point, it's like, I've just got to ride the train until I get to the stop. And sometimes it is like that. I do think you can get your income up more. But

you might not be making 150K when this all shakes out you might be at 80 or you might be at 90 but keep going down that field and keep pushing forward because you might you might get your income up more than what you ever thought possible but here's the thing the time is going to pass so we've got to keep going hard we've got to keep being intense about this and it might not go as fast as you want it to go you guys have eight kids and that's a choice that you've got to deal with. And so it's about finding ways to get that income up, getting the expenses down and just walk through the snowball. And at the end of the day, not taking on any more debt, drawing that line in the sand and saying, this is it. I'm not borrowing any more money. My husband

and I took a seven and a half years, Jamie, to pay off our debt. So this might be a journey for you, but it's a journey worth going on because at the end of the day, like I said, the time is going to pass. So go on the journey and go on the ride and get this debt paid off. Are you guys using a budget? Yeah. For the first time in my life, I did April, which was a lost cause that I was just trying to look and see what happened in April and find money. And so I'm working on the May 1 to get that going. Is he on board with this? This feels like a Jamie plan so far. Yeah, it definitely started with me, but I have been trying to tell him a why, and he is definitely getting on board more each day good well i'm gonna make it easier for you we're gonna gift you financial peace university for one year as well as every

dollar premium but i'll leave you with this the best time to plant a tree was 30 years ago the second best time to plant it is today you can do this you got this thank you thank you i actually really love that quote george that was uh that was deep it too late. But we got to stop looking to the past. That's right. Stop looking to the future. And you're not a failure. You'll never get anywhere with that kind of language. And that's for any of y'all listening.

Be nicer to yourself and give yourself some grace out here. All right, that does it for this hour. Be sure to join us next time. And remember, when it comes to your life and money, you can tell me that you won't do it. But please do not tell me that you can't. Hey, what's up, guys? It's Jade.

Look, if you like what you heard in this episode and want to know more about getting started on the Ramsey Baby Steps, go to ramseysolutions.com and click the Get Started button. We'll help you figure out the best next step for you based on your specific situation. That's ramseysolutions.com and click Get Started.