The Ramsey Show - App - When You're Focused, It's Amazing What You Can Do (Hour 2)

Episode Date: September 13, 2019

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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 am Dave Ramsey, your host. Thank you for joining us. Open phones at 888-825-5225. Dave is in Cincinnati starting this hour off.

Hey, Dave, how are you? Dave? Hey, Dave, how are you? Good, man. How are you doing? Hear me okay? Yes, sir. I'm doing good.

How can I help? Hey, I know you hear it a lot, but, you know, God bless you with a tremendous amount of wisdom, and I certainly have gained a lot of knowledge from your program, but I also have an opportunity to be a table facilitator at our church, so it's been amazing for me. Well, thank you. Thank you for doing that.

It's a lot of fun. You and I are both getting to share in that fun of watching people change. It's a huge blessing to have work that matters. How can I help today? Well, normally I would like to say I could answer the question, but I'm going to make a decision here that I need your help on. And your last call for the debt-free screen could decide whether or not I could be doing that in six months or two years. So where I'm at, 56 years old, got just at a million in my 401k. Of that million, there's $35,000 is in a Roth.

My mortgage is $48,000. And I wanted to know if it was okay to go over and reach into that Roth piece since it wouldn't be taxed, right? Right. And then pay off that, and then it would put me at about four months for paying off my baby step six to move into baby step seven. So you have $35,000 of principal in your Roth that you put in. Yes, I put it, yeah.

You can't touch the growth. You can only touch what you've put in. That's correct. Okay, and you have a million in 401Ks and Roths. Yeah, I have my emergency fund, plus I have a piece of a car fund, a piece of a kitchen fund, a piece of a bunch of funds. How much is in the piece of car fund, piece of kitchen fund? The car fund is probably about $4,000, and the kitchen fund is about $2,000.

Okay. Not a ton there. What's your household income? No. It's right around $100,000. And that can take a sharp turn north occasionally a couple years. But for the most part, I plan on about $100. Last year it went up to about $150.

And you owe $48 on your house. $48. Okay. There's not a wrong answer here, okay? There's not a thing that says, oh, this is stupid or this is smart, never do it or anything like that. You've not ventured over into one of those areas. The two, you know, when you kind of put the two columns of pluses and minuses, pros and cons, and you start measuring this out, here's what I run into. Obviously, the pro is you're out of debt very, very quickly if you do this.

The con is at 56 years old, you said, right? Mm-hmm. What that 35 will grow to with no taxes on it ever, by the time you're up in your 70s is a lot and you're going to lose every bit of that by doing this um it doesn't kill you and that's why it means that's why it's not in the stupid zone if it was the only money you had we wouldn't do it because it would kill you because you got a million bucks you've done it man you're a millionaire well done congratulations um so it's just that we're giving up what we would gain 100 tax free on that 35 and what are we gaining by giving all of that up two years right i think it was going to be done in about 17 months yeah something like that i'm probably

not doing it yeah right okay because here's the other thing that's running through my head if you want to do it you can do it anytime but you can't undo it once you did it. Hmm. Yeah, I like that. So I'm going to plug ahead, knowing that if at any time I want to, I can pull the trigger and finish it. Well, I wanted to come and see you in six months, not two years, but I can amend that pretty easy. It's not to say if you do it the other way,

you're not thrown out of the table. You're not thrown out of the table. You're not thrown out of the Financial Peace University Coordinator Club for being stupid. You're not any of that. I mean, it's almost an intellectual discussion. It's not an emotional discussion. It's not a financial discussion because you did it. I mean, this is pennies on the dollar of the situation. If you take $35,000 out of that account and burn it in your kitchen sink it doesn't change your life

you know it really doesn't right you wouldn't do that obviously but but the point is it's a small enough part of your world that this decision is not a deal breaker it's a biscuit so we're buying a biscuit here but but i'm just it's just a math thing for me, and knowing that I could reach over and be out of debt any time I want by doing this, once you get that down to 35, I'm going to go ahead and just work it, work it, work it. And maybe you have that year where that 100 goes north, and you just knock it out and you didn't have to touch it. Or maybe you get into a little bit of a strain, and you just say, you know what, I'm sick of this, I'm going to do it. And you pull it out and finish it. Either maybe you get into a little bit of a strain and you just say, you know what?

I'm sick of this. I'm going to do it. And you pull it out and finish it. Either one is fine. Either one of those is fine. Very well done, sir. Very, very, very well done. We appreciate you and appreciate you listening and leading the class and so forth.

Did you inherit any of your million dollars? Zero. Okay. And so you're a 56-year-old millionaire. The house is worth what? Close to four. Okay. So you're worth about a million and a half, give or take.

And what was your best year ever household income? What's the most your family's ever made? Well, last year it was $150, was 150 but you gotta remember i started out about 18 000 for many years when i first started as a young engineer so you've never made over 200 you've never made over 200 000 household income in your life oh no no in fact last year was the big big one you know and most years most years were most years were under 100? I'd say 75 to 100, yes. Okay. And so how did you do this?

It's just steady investing in a 401K, it sounds like. Dave, I was a Larry Perkett guy. I followed him. And then, of course, I ran into you. And here's the deal. Like this, about four years ago, I ran into you. You're like this about four years ago. I called you, and I told you I was stuck between baby step three and four, and you kind of laid the hammer on me,

and after I hung up, I was like, man, I'm doing all this stuff to help this program, but what you did was you put my mind on the right track because I ramped it up and I buzzed through almost $110,000 worth of my mortgage in like three years. Wow. I just hammered it by intensity. Wow. And it was the best thing that I could have done. But anyway, I just followed. Yeah.

So Larry's sitting in heaven right now he's a friend smiling knowing he caused you to do this i'm proud of you very well done so if i laid the hammer it must have done some good it must have been for your good which is the only time i do that by the way we don't do that for entertainment value we do it for you hey man thank you thank you very well done this is is the Dave Ramsey Show. Let's talk about low interest rates, baby. I know right now that Churchill Mortgage can get qualified buyers into a 15-year conventional loan for well under 4% with no discount points or no hidden fees. Listen, if you're even thinking about buying a home or refinancing, do it right now.

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Hi, Gail. Welcome to the Dave Ramsey Show. Hi. Great to talk with you. You too. What's up? I was retired in December of last year, and then I started to listen to you on the radio and decided, well, I can't retire. So this is my scenario. I just turned 66. I haven't started taking my social, and I seem to be focused on wanting to pay off the balance in my mortgage, but I don't want to return to work full-time. So I return to work part-time, and since June, I've been putting an extra $2,000 a month towards my mortgage balance, which right now is $133,000.

And the idea that I have in my head is I have my retirement value. It fluctuates, but it's worth about $778 right now. But not to muddy up the conversation, a lot of it's in annuities. So I'm thinking of backing out of them because I learned how expensive it is for me to be carrying them. So my idea is this. I figured, you know, by the end of the year, if I keep on my two grand a month, and basically I'm just putting most of that, I mean, what I'm making into the mortgage, if at the end of the year I have an annuity that I could, the surrender fees are over,

and I would pay, I'm thinking of using that to pay off my mortgage um but then that would decrease my retirement um nest egg by whatever that value would be like 130 grand but i guess i could always continue to work part-time and build that back up so that i'm i'm just overwhelmed with figuring out what to do. I got you. So you have Social Security. If you retire again and your house is paid off, you would have Social Security coming in. You could have the income off of just under $700,000. And do you have any other income sources? Well, the home is actually an occupied duplex. So I live in one side, and the other side is currently rented and in Portland. There's no reason why it won't continue to stay.

What does it rent for? What does it rent for? Right now it's $1,150. So another $1,000 a month. Okay. Do you have a pension of any kind from any former jobs? Well, I was an S-Corp, so the money that i have acquired is my no i'm talking about not not the six or seven hundred thousand but any no i know no i don't all right and so you got a thousand dollars coming in

on rent you're going to have 1500 or so coming in on social Security. Well, actually, it's $2,200. It's what? $2,200? $2,200. Okay, so that's $3,200. How much more than $3,200 do you need to live per month well? I'd like at least four, so another $800. Okay. That's only $10,000 a year. So if you'll make sure that the $700,000 you have remaining after you pay off your house,

if it were invested well in good mutual funds, and you do have some things you need to move around probably, but let's just use some simple math, okay? Let's say it was invested poorly and didn't even make 10 a year that was that would be yeah that would be like 60 000 a year would be less than 10 10 would be 70 70 000 okay so 60 000 that's five thousand dollars a month without touching your principal that puts you at eight thousand dollar a month income oh i wouldn't know what to do with that i've never lived that flush yeah go see a smart investor pro get your 700 000 reorganized to where it is creating that kind of income

by moving it from these annuities or have a plan to systematically move it over the next period of years towards creating that kind of income for you, pay off your house and quit your job. You do not need to be working. Okay. So what do you mean not to? Okay. So, so go see the smart investor. And I guess my question now is, are you saying that I should not?

I'm saying I probably would move out of all of those annuities, at least some of them, and I'm going to put it in good growth stock mutual funds. You can be in a variable annuity. That's an okay product for some of the money that has mutual funds inside of it. But I want you earning, without a bunch of surrender charges, I want you earning good money on this money to where it's a no-brainer for you to pay off your house and still have plenty to live on. Would you recommend that then I go see the investor first before I pay off the mortgage?

Before you do it before you do anything because i want you to have peace about how this is all going to work you need you're very bright i'm talking to you you've got all this figured out you are not confused about your stuff you have a very good insight you have a good very good instinct both a good intellect on what you're seeing i'm proud of you you've done a really good job. You're a millionaire. I'm close, aren't I? You are. You are.

That duplex is worth over $200,000 in Portland, Oregon. Oh, absolutely. There we go. I mean, you're going to be there or right there. So you've done a wonderful job. Very well done. Thank you. So let's just get with somebody to help you polish and fine-tune, and then you will be able to see how

you are okay not because dave said you're okay that's when you pay that's when you pay off your house so click smart vestor at davramsey.com put in your information drop down list the smart vestor pros in your area sit down with them take all your annuity junk over there they can tell you what well we don't need to move this one. Let's wait six months because there are too many charges. Okay, then let's move this one, and then we'll move this one. But by the time we get them all moved into good mutual funds and we leave one or two of them in a variable annuity, then if you want to do that, that's fine.

Then I'll have this kind of an income without touching the principal. That $600,000 or $700,000 that's left over after you pay off your house is still going to be creating an income that is more, it's double what you need, what you're saying you need to live on. So you're doing great. You just got to get it polished up, kiddo. You're in really, really good shape. Very, very well done.

Dominique is with us in Allentown, Pennsylvania. Hi, Dominique. How are you? Really good, Dave. Thank you for taking my call. Sure. What's up? So my parents did the Financial Peace University years ago.

They were debt-free for probably around three or four years. And the last two or three years, they started going back into debt again, and they just keep adding it up, and they really haven't been working towards paying it off. And I've been trying to help them, like, make a plan and everything, and they're just not really... Sounds like they have a plan. It's just a bad one. Yes, and it's not really... It's scaring me because i have a feeling

that they're not going to have a retirement when it comes time yeah okay it's really one of the most painful things of being an adult is watching people you love do stupid self-destructive things because the problem is it's not illegal to be stupid. You can't have them arrested. Right. And they're obviously not listening to you, right? You've talked to them. Yes. They're just going to go ahead and do stupid, right?

Pretty much. Yeah. I don't know. I mean, I think the only thing you can do is to... Do you know anybody that – what was it that got them into Financial Peace University in the first place? Who got them in? I think it's because at our church they had an announcement that they were having classes. Yeah.

Who let them do it? Was your pastor involved in all that? I believe so. Okay. I'm just wondering if your pastor could talk to him because they're not going to listen to you we've already figured that out right that's not an unknown abnormal by the way most parents don't listen to their kids so it's hard to take advice from your kids so uh but what i'm thinking is i wonder if there's somebody else that could speak into their life and give them a little cattle prod. Shock them, right?

Somebody needs to shock them. And they're not listening to you. So, like, maybe a pastor would smack them upside the head in a loving pastoral kind of way. But, you know, something needs to happen. And otherwise, you've just got to stand back and mind your own business. I mean, you could drop some hints here and there. If you all ever want to get out, I'll pay for Financial Peace University for you to go back, or I'll help you or whatever, but you're worried using LinkedIn jobs, you're missing out.

Our Ramsey Solutions Company page on LinkedIn has over 100,000 followers. That's 100,000 potential like-minded people our team communicates our current openings to. We also post our jobs on LinkedIn because we know the best candidates already have jobs. And LinkedIn makes it easy by doing the legwork for you. It's no wonder a hire is made every eight seconds on LinkedIn and over 600 million members visit LinkedIn to make connections, learn and grow as professionals and discover new job opportunities. Get started today with LinkedIn jobs and get $50 off your first job post. Visit linkedin.com slash Ramsey. Terms and conditions apply. Thank you for joining us, America. This is the Dave Ramsey Show.

In the lobby of Ramsey Solutions, Tim and Kristen are with us. Hey, guys, how are you? Hey, Dave. How are you, Dave? Excited to be here. Well, we're honored to have you. Where do you guys live? We live in LaPorte, Indiana.

Okay. South Bend area. Yeah, we're about? We live in LaPorte, Indiana. Okay. South Bend area. Yeah, we're about 20 minutes away from Notre Dame. Gotcha. Very cool. Welcome to Nashville. Thank you. And all the way down here to do a debt-free scream.

Yes, sir. We are. How much did you pay off? $105.55 and 16 cents. Love it. And how long did this take? 33 months. Got it.

And your range of income during that time? We started, it was about 85 to 94 when we ended. Okay, cool. What do you all do for a living? I'm a merchandiser manager for a small family-owned chain of grocery stores. And I do payroll benefits for the same chain. I've worked for them for 40 years. Wow.

Very cool. And he's been 44 years. Did you guys meet there? We did. Wow. And both still work there. Yes. That's unusual and very cool.

Yes. I love it. Very neat. Look at you. What kind of debt was the $105,000? Well, we had three credit cards. We had a small car loan. We had eight 401K loans between the two of us.

We had a Parent PLUS loan and a home equity loan. Wow. You were just normal. Yes. Had every kind of debt in the world. We loved them. We loved them. So how long have you guys been married?

16 years. 16 years. Okay. And 33 months ago, a little over two and a half years ago, almost three years ago, something happened. What happened? Well, a couple things happened. We were never really together on our finances, even since we've been married. And one day I just started adding up everything we owed.

And you know how you say it takes your breath away? It takes your breath away. And when we discovered that we owed more than we even make in a year, it was pretty eye-opening and scary. And that's what really started it all. So that was the jolt to the system. Right. And then what did you do?

Well, I'll tell you, we really didn't know what to do. We knew we had to do something though. So we hadn't met you yet. So I immediately took out a home equity loan to free up some cashflow. We knew we had to start paying this stuff off. And believe it or not, it was the loan officer who originated the loan for me that told me about you. Wow. Yeah, so I did a quick, she couldn't remember your last name. She said, there's this guy that gets people out of debt.

His name is Dave, but I don't know his last name. I love it. Yeah, so I went home and did a quick Google search. Of course, you know, your Google ranking's very high. So then we found you and I bought the DVD home study course is where it all started. Very cool. And then after a year, we did the financial peace class.

In person? Yes. Okay, so first you did the DVDs at home. Yeah. And then you did it in person. Actually, we went to two. We went to twice. Oh, that's good.

Yeah. I love it. Just to get our batteries recharged. There you go. It's good for you. Yeah. You keep cycling through and doing it. Yeah, shout out to our coordin coordinators uh grace point church and

valpo that was dan and jackie brubaker and then uh in our hometown of la porte we went to agape christian church and justin lisa denger neat yeah great very neat cool good for you guys so what do you tell people the key to getting out of debt is you pay off 105 000 in 33 months you did it you're it's not theory. You actually did it. What do you do? Tell people what to do. Well, I thought a budget was writing down what to do when and just hoping I had enough money to buy groceries or whatever.

But the first time was budgeting. I had been in debt since I was 17 years old. So 40 years in debt and, you know, just the budget and being on the same page with him. Yeah, I mean, there's so many little things that go into it all. But for me, the most important thing was being on the same page with Kristen. And every dollar really helped. It's amazing. That's one thing that really came out of this for me is what you can do when you're both in agreement and you're together. Focused.

And you're focused. It's pretty overwhelming. We have a good why. We want to move to Ohio in a few years. Oh, that's cool. We have a good why. Wow. I don't know how that store chain is going to operate without you two.

They're going to have to get by. 90 years between the two of you working there. My goodness. Yeah. Wow. They'll going to have to get by. 90 years between the two of you working there. My goodness, yeah. Wow. They'll be all being a mess. Well, good job, you guys. Very well done.

So you did the class. You used the EveryDollar app. I mean, you did it all. You're amazing. It's all due to you. Well, I didn't do any of it. You paid it all. You showed us the way to get there, though.

Proud of you. You gave us the roadmap. Very proud of you. Very well done. So you're what, 57, 58? 57. Yeah, I'm 60. I'll be 61 on Monday. Okay, so y'all are about our age. Very good. Right. And we did have 401ks. I mean, we

I looked at him like he was crazy when he told me to stop it. So we haven't been putting in for three years, but at least we do have some you know. A little bit of savings. A little bit more than what some people do. Now it's time to just start back on that. You're exactly right.

You're exactly right. We're working on baby step three right now. We should be done by Christmas. And then you'll tear into that 401k. We will. Well, we're going to do 3B. Oh. Yeah, we're going to do 3B for a couple years so we can build up a really good down payment,

maybe get close to paying cash. Ah, there you go. We are going to start the 401ks back up, though. Yeah, okay. Good for you. Well done, you guys. Great job. Thank you.

We've got a copy of Chris Hogan's book, Retire Inspired, and that's going to be the next chapter in your story, as you just said. That's your plan on it all right now. That's excellent. Very good. And be millionaires in the process. I think you will be, it sounds like. I hope so. That's excellent. Very good. And be millionaires in the process? I think you will be, it sounds like. Very well

done. Tim and Kristen, South Bend, Indiana area, $105,000 paid off in 33 months, making $85,000 to $94,000. Count it down. Let's hear a debt-free scream! Three, two,

one. We're debt-free! it baby three two one we're dead free this is how it's done love it well done you guys very very well done joel is with us in salt lake city hi joel Joel. How are you? How are you, Dave? Better than I deserve. What's up? So I'm hoping you can help me work out getting to a goal of mine. I'm going to be buying a business where I work within the next year, probably middle of 2019, and the business is going to cost about half a million dollars,

a little bit more. And we've worked out terms to be 25% down, and the remainder is going to be paid out as a percentage of the bottom line until I pay off the balance. And my wife and I finished FPU earlier this year, and we're in four, five, and six. And we have a house, we have a rental property and the rental property actually has enough equity to cover the 25% down payment. But I'm just wondering if we should do that. Should we sell the rental and use it as a down

payment? Should we sell the rental and use that equity to pay down our house for baby step six and then save up for the business in a different way? I'm just wondering if you can help me work it out. Well, I mean, if you want to save up and do it, that's fine. If you want to sell the rental, that's fine. I would not borrow the money to put the down payment. No, no, we're not going to do that. Okay. So, I mean, what is your income now? I'm ramping up right now, and so it's going to be in the mid-100s. What is the net profit of this business that you're buying? The net profit is, I'd say, a quarter of a million or 300. Okay. And so you're promising them out of 375,000 a

year until the 500,000 is paid right okay right so we should be able to do it pretty quickly yeah okay and then that leaves you considerably more than that to do other things with exactly okay all right very cool very cool i would definitely do that. But as far as the down payment part goes, you know, the 25%, either sell the rental or save it up. Can you save it up by next summer? I'm not sure because I am ramping up. And, I mean, we could probably live off less than half of what I'll be making to save up. Yeah, yeah. Well, I'll tell you, I think that I want to own this business more than I want to own a rental.

And that's where I would do. So if I've got to choose, I'll sell the rental and buy the business because it sounds like it's a great deal. This is the Dave Ramsey Show. Hey guys, at the Dave Ramsey Show, we really value your input. It helps us to know what's important to you so we can deliver relevant content to help you crush your money goals. We just launched a brand new survey, and we'd love your feedback. It only takes a few minutes, and you'll be entered to win a $100 Amazon gift card. No purchase necessary.

Take the survey at DaveRamsey.com slash survey or text survey to 33789. Thanks for joining us, America. We're glad you are here. Open phones at 888-825-5225. Christine's in Phoenix. Hey, Christine, welcome to The Dave Ramsey Show. Hi. My question is, my fiance and I are college graduates, but my daughter's dad and stepmom are not. My daughter's expressed interest in going to college and I want to know how I can

start a healthy conversation of paying for college because our parenting relationship tends to be more difficult. Okay, so you're not going to get help from them? I don't know. Okay. Well, I mean, you pretty much know that everything you bring up is going to be, you know, it runs into an adversarial situation. So really the only variables you can control are you and a portion of your daughter's decision-making. Mm-hmm. Okay. And so, you know, number one one you don't want to trash the other

household you probably have already discovered that doesn't work um and so to your daughter in other words your dad's an idiot uh that doesn't work oh no no no you know that kind of thing and so uh but uh you can i think the conversation would not be trying or having any hope that they do anything smart or go along with anything you want them to do because they never have. And so to have that expectation would be, you know, unrealistic. But I would have a conversation with them just informational. And that is, guys, you guys obviously run your house and you're going to do what you want to do. We just want to let you know what we're going to do regarding college. Okay?

Here's what we're going to do. And you guys, then you guys can talk about it. You decide what you're going to do. But we just want you to know where we're coming from and the message that we're giving our daughter. Okay? And the message is that we're going to pay cash, and we're going to go to a school we can afford. And do you have the money to send her that you can just write a check? No, I'm in Baby Step 2 right now.

Okay, so you're broke. And she's 12, so we've got a few years. Okay, you're broke right now. So, yeah, I would work on through then and get to, you know, get your baby step up into Baby Step 3 and then 4, 5, 6, which you start your retirement, you start your kid's college. So you've got, you know, five, six years to pile some money up. That's great.

What's your household income? Mine right now is about $67,000, but my fiancé and I, once we do get married, it'll be probably close to $140,000. Great. And your fiancé is on board with assisting your daughter going to school? Yes, and he's got two kids himself around the same age, so we've got to think through that as well. Okay, so we're going to take our household income, and we've got to take these kids slash stepkids, whatever you call them, between this blended household and get these three kids through school with or without participation from the other sets of spouses, right?

Former spouses and parents. And so, yeah, I think you just lay that out and just pretend like you have three kids, which you do. And we're going to start saving for their college and we're going to do the best we can. I doubt you're going to have $300,000 saved in five years per kid. You know, you might right uh so i you know it's very possible that we're going to have some limiting factors on this kid going to school meaning that they're not going to get to go school anywhere they want to go they're going to pick an inexpensive in-state school maybe do community college for the first two years they're going to need to be working towards scholarships they're

going to need to plan on working while they're in school. And then they can get through debt-free with some help from you and some help from themselves and a lot of help from their proper choices. And the only way they get my money, if I'm you, is if they do not take out any loans and they go to a school that I approve of, which is within our budget. So if Daddy says, no, baby, you go get daddy says no baby you go get student loans baby you get student loans you don't get any money from me i am not going to finance your stupidity okay so that's how you can you can only control what you can control and that's what you are

willing to do and under what circumstances and so my kids went to school i was able to save the money and pay for them to go to school and when they went to school uh i'm in total control because it's my money so you're going to behave uh you're going to be you know we're christians so you're going to be walking a christian life you're not going to be out sleeping around all over the place and, you know, hell raising and all this stuff. You're going to behave and you're going to go to school. You're going to go to class and you're going to pass the classes. Or I'm not paying for it.

And I'm going to see the grades. You don't have the right to see the grades. Yeah, I do. It's my dadgum money. So you sign the little form that gives the right to see the grades yeah it's my dadgum money so you sign the little form that gives me permission to see your grades even though that you have to give me a form now for it to be legal but you know i'm in control of this or you're a control freak you dadgum right i love you it's called a benevolent dictatorship and uh that's how this works and and that's where

parents actually have the backbone and the character to parent. The only disadvantage you've got in this one situation is, you know, the possible negative influence of an outside former spouse that is her parent. And same thing with your husband's ex as well. But you've just got to tell the kids, this is how it works. We're going to save a bunch of money. You can have that money. But we're going to have input on what you study, where you study it, and how you behave in order to get this money input. One of the behaviors is no student loans. You don't need student loans. You can work if you'd make the proper college choice. And that's how I would lay it out. And then inform the other spouse that

that's the stance you're taking. So you're letting them know that if they try to influence your daughter to go get student loans or go to a school she can't afford oh just go anywhere you want to go honey everybody does it you know if you're going to play that routine she's going to get zero you're cutting her out of 50 or 100,000 bucks that i got saved over here she's getting zip you're letting them know that now you don't have to be that abusive or abrasive in your language and the way you transfer the information but just let them know this is what we've told her in order to qualify for the money we've saved for you to go to school you have to do these things and if you influence her to do one of those other things is the unwritten statement then you're you're

influencing her to walk away from 50 or 100 000 bucks and they may just throw up their hands and go we don't even believe in college, we don't care, do whatever you want to do, we're not doing nothing. And that's okay, too. That's okay, too. You can't control them. And I would have low expectations based on what you said of them doing anything. Gabriel is in Philadelphia.

Hi, Gabriel. Welcome to Dave Ramsey Show. Hey, Dave. It's a pleasure to talk to you today. You, too. What's up? Well, I have two quick things. First, I want to thank you because finding you, you led me to go from making $39,000 after taxes to making about $93,000 after taxes.

Whoa! What did you do? I worked my tail off and finally decided to leave my job that I've been working on for six years as an IT consultant to an actual system admin at another location. Wow. So you were being underpaid. Massively. It was a great company. Taught me a lot. Great mentor, but the pay wasn't there. Yeah. Like severely. Well, I'm proud of you, man. Good job. How can I help today? Well, I have a big concern. At this point, I am in baby step two. I am scheduled to be done with my debt is about $83,000 in about 18 to 20 months. Good. I'm nothing changing as far as I'm concerned.

I'm making a certain amount of money. Everything should go into this debt. But my biggest concern is my parents. My parents have been working in the united states now for about 20 25 years i just spoke with my parents about their um retirement and i found out that my dad only has about 83 000 okay and that's how old is he he He's 55. 55? Yeah. Oh, so he's got 10 years to save. Yeah, but, I mean, where's that going to put him, though?

I've run the Chris Rogan RRQ, and it's looking like maybe if he does 10,000 a month, he could be looking at a million point six. Yeah. But I don't even know how that's possible. I guess I have to talk to him about that. I don't know if he can do 10,000 a month. He didn't necessarily have to be a millionaire at 65 years old. But the point is, he can take 85 and with 10, 12, 15 working years left,

can throw money at the retirement nest egg and get the nest egg big enough to survive. Yeah, you got a really good head start. I'm going to give you a copy of Chris Hogan's book, Retire Inspired, which is exactly the answer to this question. And you can send it to him as a gift from you. So hold on, and I'll have Zach pick up, and we'll get that book out to you. It's a number one bestseller. It completely outlines how to retire inspired, whether you're 26 or whether you're 56. And so you can do this. The numbers are okay. He's okay as long as he decides to do it. Now, if he lopes around for another decade,

he's going to have a problem. This is The Dave Ramsey Show. Hey guys, it's Blake Thompson, Senior Executive Producer for The Dave Ramsey Show. This hour's over, but you can find more great content on our YouTube channel. Catch the most watched Dave Ramsey, death-free screams, and the very popular Everyday Millionaire segment. Go to The Dave Ramsey Show YouTube channel and click subscribe.