The Ramsey Show - App - What Would Dave Do in This Situation? (Hour 1)

Episode Date: March 26, 2024

Live from the headquarters of Ramsey Solutions, it's the Ramsey Show, where we help people build wealth, do work that they love, and create actual amazing relationships. Dr. John Deloney, Ramsey personality, number one best-selling book, author, and host of a very hot YouTube slash podcast program on the Ramsey Networks called The Dr. John Deloney Show. He's my co-host today. The phone number is 888-825-5225.

Sabrina starts off this hour in Tampa, Florida. Hi, Sabrina. How are you? I'm doing better than I deserve as well. I can't believe you finally get to settle this for my husband and I once and for all. So I get to put on my referee's jersey, get out my whistle. Marital referee, Dave. Absolutely. marital referee dave absolutely and you've been with us since our engagement because we did

fpu as a part of our marriage counseling so we have every dollar we do the budget meetings we paid off our house last march so you guys already know the answer to this question whatever it is i that's the thing i think i do know the answer i know he knows the answer but he has these external things so our network is 800 000 but my husband is ready to buy his dream truck and i know you say wait until your network is at least a million dollars we bring in about 215k a month their truck would be between 50 you mean a year so i'm you mean a year yeah absolutely okay i was about to buy a truck okay but uh okay yeah at 2 at 2.5 million annual income i'm ready to go okay all right anyway but anyway 215 000 a year you're still doing good okay yeah we already put in 15 for retirement how much is the truck the truck will

be 50 to 60k okay so what is it it's going to probably be a silverado he's torn between the silverado or honestly dave i feel so embarrassed what is the oh f ford afford something f-150 repent yeah f-150 you can't call about the truck man's truck and not know what the man's truck is it's just wrong okay bless your heart this is wonderful okay so the only art you're out of debt you have the money to pay cash for the truck the only argument is 800 versus a million right okay and so uh what's your home worth our home is worth a little over 300k it varies on zillow between 300 330 okay and you're in tampa florida and you're adding 15 so you're adding 60 000 a year not counting growth to your 401ks.

And so that's 120. So in three years you'll be there if there's no growth in the stock market. So you're millionaires in 18 months from now, roughly. That's crazy. That's wild and exciting. Yeah, that's what the math says. Okay, that's good for y'all. How old are you?

I'm 35, and he's 37. You guys rock. You're's 37. You guys rock. You're so smart. You all rock. You all got it here. I didn't give you any money. Yes, you did. I just showed you how to do it.

Sabrina, what's the nomination are you guys? Oh, we're Christians. Oh, I know that. I'm just trying to figure out. You sound like you come from a very legalistic background and oh my gosh you know me so well i'm scared all right she's a fundy dave will give you the answer and then i'll see if i can give you a workaround because my church is all over the i'm just kidding go ahead dave um so the concept is and the reason we put a million dollars on there is, you need to have a really strong net worth and be in a really strong financial position

in order to be able to lose as much money as you're going to lose when you drive a brand new truck off the lot. When the sound goes blump, blump, when you go into the street, on a Ford F-150 that's 60 grand or a nice Silverado that's 65 or 70,000, you just lost 15, 000 bucks when it goes golly that's what it costs when you drive it into the street so you got to be able to absorb that blow and it not change your life at all most people do that crap while they're broke middle class people and they i need a track i deserve a truck because i work hard. You don't deserve squat. You don't work hard

enough and you haven't done a good job yet. So that's who we're talking to. We try to put a million dollars up there because at a million dollars net worth at 35 years old making 215, you can absorb a $15,000 blow, right? That's where the concept comes from. So really what we need to understand is the concept under the principle rather than the legalistic number because if it was 1.1 or 900 or 800 it doesn't really matter what matters is the concept is you can absorb the blow so at if sharon and i were doing this and it was me wanting a truck which is very very possible that that conversation has occurred um because i drove my raptor here today so there you go but the uh we heard it coming like eight blocks away

god that's a good redneck truck man i'm just saying you gotta make an announcement when you come around the corner but the uh uh all right so if if we were doing this, we would probably say, all right, the good news is the principle that's in place made us stop and think. Are we wise? Okay, so the good news is you're wise, both of you. You've done a great job with your money. You're incredible. If you buy this truck, it's not going to destroy your life, okay?

And we set out on a journey following a set of principles and guidelines that got us here deviating from those is kind of damaging to your psyche it feels like you cheated you know what i'm saying yeah so technically league technically financially you could buy the truck and you wouldn't notice i worry more about you deviating from this and saying okay i get i get i got the cheat code right i got the hack and so so it you could buy it today it wouldn't be a problem so what sharon and i would do with both of those things in mind the concept matters more than anything else and the deviation scares me more than the technical math on it scares me and so what we would do is we would probably land in the middle. We'd say, okay, we're not going to do it this year.

We're going to watch the stock market and what it does with our 401k. We're going to watch our Zillow or whatever, probably something more accurate than Zillow, on my valuation of my real estate. And, you know, if we get up in the 900s in the next 18 months, I'll buy a truck. We might cheat in the middle. You know, we'll probably meet in the middle. It's probably what we would do. Okay. So this is not, but I can't, I don't get to blow my whistle because I'm not going to yell at you if you do it today.

And I'm not going to yell at you. And I'm not going to say you're super extra smart if you do it, you know, if you wait till it's exactly a million, because there's nothing magic about the million. What was magic is we made you pay attention. What was magic is we gave you a plan that you believed in and you executed on it. What was magic is you got a large enough net worth that you can absorb the blow. That's the magic. That makes sense. And we didn't lose any of the magic if you buy something today.

And I Got it. I absolutely love that plan. And the one caveat I would add to it is, does it have to be a 2024? Does a 2023 or 2022 get you there where somebody else, you get this amazing. If you want to do a 23, you can do it today. F-150. Somebody else has already eaten that 15K for you. And you buy a car with 9,000 miles on it.

Somebody returned it and you're good to go. I will tell you this. I'm on my fourth Raptor. So you're going to do it again anyway. So you could do a 23 and in two years go do a brand new one. And that would solve... John, you're smart! That's why we got you around here,

man. That's a better solution than all my meandering around the barn six times. This is The Ramsey Show. Dr. John Deloney, Ramsey personality, best-selling author, and, of course, host of The Dr. John Deloney Show, which you need to tune in and check out on the Ramsey Networks. Zachary is with us. He's in St. Louis. Hi, Zachary. How are you? I'm doing well. I'm doing well. How are you guys doing?

Better than we deserve, sir. What's up? Well, I had a question for you. I'm actually a pastor over here at a small-town church, and I just want to say I very much appreciate all that you do. Thank you. But one question that's come up for me is I often hear you use the phrase, the borrower is slave to the lender. And I definitely agree with that principle in many ways. But then on the other end, I noticed that when it comes to a mortgage, you are okay borrowing in that instance, which seems almost to betray that principle a little bit. And I guess I was just curious on your reasoning as to why you think it's okay to borrow

in that instance. But then when it comes to something like a car, especially for someone like me, I live a little bit in the country where I'm at. So it's a little bit more difficult. A car is almost a requirement. Pastor, that is a wonderful question. It's a really good question. Of course, you're quoting the scriptures, Proverbs 22, 7, the rich rules over the poor, and the borrower is slave to the lender, and this is a biblical principle that we're violating when we say it's okay to take out a mortgage, and that's your point. And you're, you're correct completely on that. Um,

or when we tell people it's okay to do that. So are you 26? I'm actually like 31, 31. I had to think about that for a second. Okay. That's okay. Yeah.

You lose count around 30. It happens. So yeah, I'm on the 34th anniversary of my 30th birthday, but the, um, all right the uh uh so the answer to your question is it is the only hypocritical advice we give on this show it's the only thing that was hypocritical we give on the show it's the only thing we tell

people it's okay to do that i never do i went broke in my 20s as I was a baby Christian. I had just met God, and I discovered in that process a guy teaching what the Bible said about money named Larry Burkett, and I said, I'm going to follow what the Bible says. I'm never borrowing money again, and I've never borrowed money again. I don't borrow money for anything ever for any reason under any circumstances. Everything else I tell people on the show to do, I do exactly what I say to do. Allowing people to take out a mortgage without me yelling at them, it's the only time that my advice is inconsistent with my life. Does that make sense? Right. And it's completely fair for you to call me out on it, and then I'll answer your question.

But I wanted to caveat that and say, I don't borrow money for anything. And sometimes when I get a question where it's kind of borderline whether they have to borrow or not, I tell them that story. I say, hey, I don't borrow for anything, and I recommend that.

That is the best way. If you follow biblical principles, in your marriage, your marriage is going to prosper. If you follow biblical principles raising your kids, your kids are going to be amazing. If you follow biblical principles in your mental health and your emotional state, you're going to prosper. And the same is true in your money and in your leadership if you're running a church, running a business. Same thing's true. So evangelical, man, I believe if the Bible says it and you do it, it's a good thing, right? So I'm with you on that. Now, the reason that I

lighten up when someone calls in on that is two things. One is I can pretty much talk you out of or call you stupid taking out a car loan because cars go down in value, the interest rate is higher, and there's no correlation between buying cars with payments and becoming wealthy very few millionaires will tell you that oh the best thing i ever did was agree to borrow on a car because i needed a car because i was out in the country and i was driving a long way and i needed a car no millionaires told us that when we studied 10,000 of them. So the fruit is not there. I'm a fruit inspector. Okay. The second thing is millionaires do tell us that they borrowed to buy a house many times. And when they got it paid off, they never borrowed

money again after that. They're debt averse, but not completely mortgage averse. So the data is in that millionaires do do that even though i would tell you the best way to do it is save up and pay cash for it it's hard to get people to save up for 10 years to buy a house i can get them to save up three years to buy a car or to 18 months to buy a car but i can't i've had trouble doing that so i make that violation but i also often tell people all the time when i say that uh you know no more than a 15-year mortgage no more than a payment of a fourth of your take-home pay you probably heard me say that zachary and and then get the stupid house paid off as fast as you can because the

shortest distance between where you are and wealth is debt freedom and that's consistent across the thing but you're exactly right and but a car is a completely different thing. A car is the largest thing we buy that goes the wrong direction. It goes down in value. And when you finance a car, you're just begging to be middle class the rest of your life. Financially. Mathematically. Well, and most people are stupid enough to take a car note on a $30,000 car when they have no money either. Exactly.

Yeah. Like everybody listening right now, just about. Right have no money either. Exactly. Yeah. Like everybody listening right now, just about. You're right. I did. I, I did have one other thing. And by the way, I want to say, I support everything you're doing wholeheartedly, including like, I've been using myself, many of these steps, being a small town pastor, you don't get paid a ton of money and you have kids. And so I've actually had to use these things for myself. So again, I want to say thank you. The one other thing I noticed though, as someone who was new to the Dave Ramsey program in many ways, and I was new to those steps is that I

didn't hear a lot of talk about creating a buffer. So as someone who was new, I didn't have any money in my checking account, right? Because I was using credit cards and then I was paying off those credit cards with the money in my account. So I never really had money in my account and I was in this endless cycle, obviously, like a lot of people were. So one thing that I thought just to consider is that in those baby steps, I almost thought there should be another baby step about creating a buffer because people need to – they don't just need a $1,000 emergency fund. I thought that was the buffer whenever I was new to the Dave Ramsey program and the Dave Ramsey baby steps. But there's also this idea of making sure you have a buffer because you're going to have auto payments on preschool and mortgages and all types of stuff. Well, that should be part of your budgeting, Zachary.

Budgeting is cash flow planning. And so you're planning to not take more money out of your checking account than you have in it. That's your buffer. And you can put a $100 buffer in there if you want, but that's fine. You don't need any more than that. There's nothing wrong with that. But you don't need a $2,000 buffer because you're incompetent at budgeting.

You need to have the budget dialed in. We're paying the auto payment comes out here. This other payment comes out here. The paycheck planning aspect, it's called, and if you use the EveryDollar app, shows you how to do that. And so you need to plan out every situation there. But hey, we're honored to have you as a new listener i that is something that that um man i that rings home to me because here's what i fell in the trap of doing my wife and i would make a budget and then we would check our checking account to see where we were we shouldn't do that because then i would make it i'd be like oh i can get a little more groceries

and then that yeah because the checking account is not an indicator if you're on your budget that's exactly right and so then that buffer he's talking about then all of a sudden the school would pull their tuition on the fourth instead of the fifth and because i was not following the budget map we'd laid out but i was checking the checking account part you would never a budget map is a plan and you would never plan to spend money that you don't have in your account right yes so don't plan to spend money you don't have in your account and your need for a buffer goes away other than a common sense of 50 or 100 bucks or something for slippage you're a little you know something being off 20 cents or something you don't do that we don't want to to the penny thing but but this

concept of slosh right because that covers my lack of detail and sticking to the detail that that's not you don't need slosh that's right that's not good but yeah and and a lot of people do that so the trick is the thing that happens is your brain and you and i've been talking about this in a bunch of other areas too your brain rewire the neuroplasticity your brain rewires itself when you start making every single dollar come out when it's supposed to give every dollar of your income a name before the month begins you and your spouse spit share spit shake and pinky swear that we're sticking to this contract that we just wrote down something happens and changes from that chaotic wild man that you were before. And it takes about 90 days for that rewiring to completely occur. And that neuroplasticity,

it changes your behavior. It's a behavior transformation. And so the detail matters in that situation because you're forcing your brain to work really hard. Yeah, that's what you want this is the ramsey show dr john deloney ramsey personality is my co-host today thank you for joining us america we're glad you're here open phones at 888-825-5225 now dr john he just uh ramsey networks just broke a record last week last week the dr john deloney show had 12 million views on youtube in one week 500 000 hours watched in one week and 40 000 new subscribers in a week that's a lot of human beings i i my mom retired and i think she's just at home creating new accounts and hitting refresh refresh 40 000 of them she's got a lot of she's quick man she's quick she's quick on the keyboard yeah no that's a wild i'm glad people are tuning in man yeah well you're helping a lot of people

pretty wild a lot of relationship questions and addiction questions and uh uh boundary questions and marriage questions and some bizarre ones that thing i caught a glimpse i haven't heard the whole call yet i've got to get it downloaded in the truck on the way home i listened to it but uh the one that dropped with the woman who her somebody gave her a her husband gave her an ancestry.com dna yeah and she discovers that her dad is not her dad that it's the local priest yeah is her dad yeah that is a hairy phone call it's tough and well and here's the deal um some of those dr phil or something well it can feel jerry springer if you're not careful and i think the the difference is um man we 23 and me if you go down and read some of the articles it's happening all over the country people are finding out family secrets and family stories that for generations

before just lay quiet and people lose their faith because the pastor does something or a minister does something or a leader does something and it's hard to come back and so i think sometimes the sensational calls feel like oh my jerry jerry jerry but there's some humanity in there with the hurt and pursing that says i thought that was my dad it's not yeah that's and why didn't my dad why didn't my dad come get me uh because he didn't know well or maybe he did know and yeah that's wow that makes it but i think all of us have that question like why didn't my dad show up or why didn't my mom like so i think there's some humanity in all those calls yeah oh definitely that was just wild yeah i thought man i don't know if that i knew it was going to take a twist and then it went twisty twisty yeah yeah it was

crazy yeah so i guess that's why there's 12 million views last week well and the lesson is I knew it was going to take a twist, and then it went twisty-twisty. Yeah. Yeah, it was crazy. I guess that's why there's 12 million views last week. Well, and the lesson is don't do genetic testing. You never get good info. I'm just kidding. I'm just kidding. I did it. Only bad things can come out. I did it.

It was good. I will tell you this. Find out your family tree forked. Hey, Dave, you'll get a kick out of this my doctor who he ran the genetic test for me it wasn't 23 me it was with this special program and he called and said do you struggle walking past a bowl of candy in an office and i said did my wife call you what happened and he's like i'm just looking at your genetics and whoa and i was like yeah we should probably talk this doctor man he's got insight we should talk oh at your genetics and whoa. And I was like, yeah, we should probably talk. This doctor, man, he's got insight.

We should talk. That wasn't a DNA test. That was more than a DNA test. Cindy's in Casper, Wyoming. Hi, Cindy. Welcome to the Ramsey Show. Hello. Thank you so much for both of you for what you do.

And I'm one of the Dr. John Deloney listeners. So thank you as well to you. Thank you. I'm excited and excited, but nervous to talk to you guys today, but I have things kind of lined out. I hope. Okay. How can we help? All right. So I unfortunately got a divorce about a year ago and I'm still in the house making the payment. I'm wondering what I should do in the next six months after my daughter leaves for college because I still owe my ex money from

the house. So I have some questions and some thoughts about that. So the need to protect her by keeping the home goes away when she leaves, correct? Correct. And that might have been some of the motivation early in this game. How much do you owe the ex? Well, the way the divorce decree is written is by 2026, I need to pay him half of the appraised market value at the time I sell it, but it's based on the amount owned on the house when we divorce.

So I'm making all the payments on the house when we divorced. So if you did it today, what do you owe him today? If I were to do it today, depending on, I haven't actually got an appraisal, but I'm going to guess between $75,000 and $100,000. Okay. Do you have any money? Which should be half. Nope, I'm on baby step three. Good. Okay.

And what's your household income? My household income is about $70,000 off of my full-time job, and then I also have side hustles that bring in between $5,000 and $10,000 a year. And you're getting ready to be, in a matter of months, an empty-nester divorcee? Correct. Okay, all right. Is there a reason to keep the house? Before I started listening to you six months ago, my reason would have been, um, the interest rate is really low because of course we refinance during that time. Um, I do, you know, it's a great house. I have great neighbors. The location is 90% of the

time awesome. And I'm just comfortable here. Like there's no, there's really no reason to leave except for the debt piece of it. Okay. Because I think the question is that mathematically, it doesn't sound like keeping it is going to be a blessing it sounds like it's going to be real tight that is yes that's part of what you refinance that those payments on your income are going to be tight agreed agreed so there's got to be a real reason to do this other than it's part of a picture that is now shattered and cindy i'm going to ask you a question on your behalf dave for every reason to do this other than it's part of a picture that is now shattered.

And Cindy, I'm going to ask Dave a question on your behalf. Dave, for every payment she makes of a thousand bucks, since he gets appraised value minus sales price. No, she minus the old mortgage amount, the original mortgage amount. Original mortgage. He's not gaining ground while she's paying payments. Okay. I thought he was gaining half of every payment. He's only gaining the value increase. Correct. That's correct's only gaining the value increase, correct? That's correct, yes. Only gaining the value increase, yep. Not the mortgage reduction, yeah. So...

No, and the other thing I'm up against is I don't want to leave my community that I'm in, and I've been looking at houses, kind of just keeping an eye out for what's out there. And with the increase in the rates as well, I'm struggling to find something that's been with that 25% of my take home and something I'd want to move into. Cindy, here's the hardest thing about divorce that they don't tell you. It blows up every single corner of your life. Right. And it's almost impossible just to extract this

relationship out of your life and keep your community keep your geographical location keep your payments keep your neighbors it does happen sometimes but they don't tell you it's fairly rare it blows up everything and what i see drown people is them trying to keep parts of their life shackled to themselves, and they drag this into their future, and it ends up collapsing them under a payment you can't afford or under you're going to go buy a new house in the same neighborhood that's going to be way more expensive on a monthly basis, etc., etc. It's just a matter of exhaling and realizing, oh, everything changed. So, yeah, you got to digest that.

The way I, two decision-making tools I use in situations like this or other things is I look, number one, I look into the future and I say, what is the best decision for me 20 years from today? How old are you? I am 46 okay so when you're 66 what decision makes you really like the 46 year old cindy as being wise you know what did you do you look back you're god that was so smart or god that was so dumb i wish i hadn't done that you know and sometimes if i look that far forward it kind of magnifies this and it

becomes obvious all right the second thing i do is i use a sunk cost analysis and you probably heard me do this you said you listen and that is if i didn't already own it and i had the pile of money in the middle of the table would i come by this house right okay and the probably the answer that one's no if you were in a one-bedroom apartment right now and had that had that equity in your husband was gone your ex-husband's gone he's paid off he's gone and you had your portion of the money in the middle of the kitchen table and you're in a one-bedroom apartment you probably wouldn't come by this house so you're defaulting backwards into it. You know, you're lobstering into it. You're running backwards into it rather than making a proper forward-based decision. I don't think it's

the end of the world if you keep it, but I think it's going to be tight and I'm not sure it's worth it is what I'm saying. This is The Ramsey Show. Dr. John Deloney, Ramseysey personality is my co-host today open phones at 888-825-5225 John our last caller was uh you and I talked about it during the break briefly it was very level-headed she'd been through a lot of pain and yet there was a wisdom she was not being like she was not uh way super about, she's really trying to be wise. And that was, it's not always the case when I'm talking to somebody in a situation that's been through that much pain. You know, their daughter's leaving home for college right after a divorce. I mean, she's got a lot of tearing. Losing her friends, losing her community,

losing her house, losing her husband. Yeah, it was a – you can always tell when someone's asking you a question because they want you just to confirm what they're asking. And she wasn't. Or, hey, I need some help. Yeah, she really did try to figure it out. Tell me the hard stuff, yeah. Really trying to figure it out. That's a really good place for her.

But it's also a jumping off point. I will tell you this. It's one of the harder things in a one-on-one coaching session that we've had to deal with or even here on the air is um in a divorce situation and it's not a it's not a moral construct it's a math thing uh whether it's right or not we can discuss but generally in our culture today still ladies make less than gentlemen the income of males is still higher than females not necessarily because the jobs not necessarily because a lot of different factors enter into that but the fact is math yeah the fact

is the mom generally after the divorce has a greater reduction in income than the husband okay and she generally mama bear tries to keep the kids have already had the pain of dad leaving. Now she doesn't want to have to have them move out of their bedroom, their next door neighbor friends that they play kickball with, and pull them out of their schools. And so she'll do anything to keep them in a house that there's no mathematical way she can afford. And I've watched newly single moms particularly with young children that lady's last child was going off to college she had that benefit to this decision it was it made this decision easier but when you got you know an eight-year-old a seven-year-old and a five-year-old that are crying where's daddy and don't take me out of my kindergarten class that are i love my

miss jones or whatever right and you're going to try to find a way to make a payment that does not fit in those numbers and it usually it sets them back as much as a decade financially instead of just going like you said it sucks everything's blown up everything's blown up and we've got to move to a cheaper house and there was that time that that thing happened and families and other generations just did that right you know the husband died and so the family lost the farm you know there wouldn't be somebody that loaned them that much money for that long etc right yeah they weren't there there wasn't an option they were forced into housing that they could afford you know and it's just it's so freaking emotionally painful

though uh because on the short term it just rips everything out by the hair but on the long term it's the only thing you can do to recover yeah it's i've gone to telling parents the greatest gift you can give your kid is not the schools and the stuff it's a regulated you and so you freaked out single mom trying to pay a payment she can't pay working six jobs it's an electric so i keep you in a house so everything's okay but now everything's not okay because you're freaked out everybody lives in a bug zapper then right exactly versus a mom who's able to laugh and breathe because she can make the two-bedroom apartment payments is that ideal no it's the worst man it's the worst i'm gonna afford the spaghetti and the peanut butter and jelly but now we can laugh we can breathe we can go for walks out in the park and your kids nervous systems will adjust to that yeah more than they

will the chaos to try to keep everything as as similar as it was the same the sameness is not the answer right yeah because nothing's the same right everything's gone if you can afford it and want to stay that's fine i don't have a problem with that but i will tell you that probably seven out of ten times i'm looking at the numbers with somebody in this situation they got to move and i got to be the one to tell them yeah divorce is just one of those things it's so it's so pervasive it happens so often um that everybody thinks it's just going to continue on we don't realize how painful it is and how disruptive it is to every corner of our life. It's very real.

Haley is with us in Oklahoma. Hi, Haley. Welcome to the Ramsey Show. Hey, Dave. Hey, what's up? Okay, so my husband and I just really don't want to be stuck in middle class the rest of our life. We've been married 10 years now.

We did your baby steps one, I think we made it to two maybe at the beginning, probably like four years ago. My husband lost his job during COVID, and we moved from northwest Arkansas over to Oklahoma. And the current job he has now, he's making $65,000 a year. We live paycheck to paycheck. He has a brand-new truck that is required by the job. It has to be five years or newer.

Really, really just trying to look for another job. He's been actively looking and applying. So my question is, how do we get him a good job to support, like, our family? We are currently in, we're fixing to have a fourth baby we have outgrown our one vehicle that we do have that's his truck we're gonna need a newer vehicle um just we feel like it's this recurring mountain of living paycheck to paycheck and trying to set back money and when he lost his job during covid and we had money set back into savings and depleted all of that because he was

just working odds and ends jobs trying to make ends meet. We both went to college, both had bachelor's degrees. What's your degree in? It's just poultry science and ag business. Okay, and you have four littles at home? Yes. And that's your job? Three littles, I'm pregnant with a fourth one. No, three and a half, okay. And that's your job three littles i'm pregnant with the fourth one no three and a three plus three and a half okay and that's your full-time job okay um and his degree is in what same thing and you've got a degree and you've got a uh how much debt not the truck is how much debt um the truck is about $38,000 left. Yeah, okay.

And what else? We have about, I think, maybe $5,000 more. Just one of my student loans that I was going to get, we got that last year. And then... How much is it? It's $4,500. And he has a $48,000 truck. And what else?

And then we have $1,000 on our credit card, and that's it. Okay. You realize that you all lie to yourself about the truck, right? Yeah. Okay, because you can buy a five-year-old truck a lot cheaper than he bought that. That met the guideline for work. Yeah. Yeah yeah it has to be five years in there and do they pay him they pay him in addition to 65,000 for the truck very little he gets like so many cents per mile it does not match up at all okay so his truck well it's only

good for another two years before it falls out of the requirements and so so obviously looking for another job to get out of that and try to sell his truck and be able to pay cash something for us. Yeah, I mean, you can make $55,000 a year and be way ahead of this. This is a bad deal. Yeah. It's a really, really bad deal. Yeah. So how big a company is this that he works for um decently i mean they

got they got a thousand employees a hundred employees what um probably more than like a couple thousand and they're in three four five i think four different states um they're one of the top producers so yeah i think he needs to get a job. That's part of the answer. You can't lie to yourself next time and say that a $48,000 truck fits your world because it doesn't fit your world. Just because somebody told you that you had to do that to get a job, you just don't take that job. That's not a job.

That was a no that you said yes to. Because you're desperate and scared you're a little stupid i understand but but that was a no you should have done some you know you've been better off doing almost anything else that that was a trap and so yeah i you know once he starts getting a sniff on a couple of other positions i would tell him to go to his supervisor and say i can't stay anymore and finance a truck for this multi-million dollar company yeah this multi-million dollar company wants me to buy them a truck and i can't afford it i have four kids to feed and you don't pay me enough

to finance a truck for you so screw this yeah i mean really how do you set money back to do that even when you do get a job in living paycheck to paycheck yeah well you get the truck sold and the only answers are three things one is expenses go down two is income goes up and three is we manage the snot out of the money we have using a detailed budget. That part you're probably not doing. You're probably doing a decent job of what you got. You're not flush or anything like that. You're not wasteful, but you could tighten this up a lot, and then you guys got to work on getting your income up,

and that includes you doing something from home. This is The Ramsey Show. Thank you.