The Ramsey Show - App - Where Can I Invest for the Fastest Growth? (Hour 1)

Episode Date: December 22, 2022

Dave Ramsey & Jade Warshaw discuss: Where business debt goes in the debt snowball, The best way to use a Christmas bonus, Investing for the fastest possible growth, Cash flowing car repairs vs. using an emergency fund, Pausing investing during storm-mode, When you need an LLC for a business, JADE RANT: Young adults are living at home and boosting luxury brand sales. Have a question for the show? Call 888-825-5225 Weekdays from 2-5pm ET Want a plan for your money? Find out where to start: https://bit.ly/3nInETX Listen to all The Ramsey Network podcasts: https://bit.ly/3GxiXm6 Learn more about your ad choices. https://www.megaphone.fm/adchoices Ramsey Solutions Privacy Policy

Live from the headquarters of Ramsey Solutions, broadcasting from the pods, moving, and storage studios, it's the 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. We help people build wealth, do work that they love, and create actual amazing relationships. Jade Warshaw, newly minted Ramsey personality, is my co-host today.

Already vastly popular, especially if you read stuff like on the Internet and things. So everybody loves Jade already. The phone number here, we'll be talking to you. Merry Christmas, America, is 888-825-5225. Autumn is going to start off this hour, St. Louis, Missouri. Hi, Autumn. How are you? Hey, I'm good.

How are you, Dave? Hi, Jade. What's going on? Well, I am sick and tired of being broken normal, and I have got all kinds of scenarios running through my head. I'm hoping you guys can bring some clarity on. Let's do it. All right.

So my husband and I started our debt-free journey on November 4th. We were $150,000 in debt overall. We have been kicking butt, taking names, so we're about $7,100 down, including a $1,000 emergency fund and a $1,500 cash flow Christmas. There you go. Yeah, but it leaves us with $144,000, and half of that is a commercial loan that we took out for a honey farm. So here's the kicker. I mean, I'm good, you know, putting it in order, doing the debt snowball, but I'm, I feel like I'm on a deadline. So we've got our commercial loan. That's going to balloon

on us on June of 2024. So my husband wants to move the $72,000 above the, the other, that 144 includes our mortgage. So he wants to move it above that. How much is your mortgage balance? $51,000. Okay, that's not in the equation. That's baby step six. Okay, so we've got $9,000 medical and $12,000 on a side-by-side, which we use for the business.

Okay. And what's your household income? About $110,000 to $115,000 on average. Okay, let's see. About 110 to 115 on average. Okay. Let's see. So you got 90 grand, and so we need to do 45,000 a year for two years, right? Right. And you're done before the balloon.

Well, here's the other kicker. This is the other scenario, and this is where I'm hoping for the clarity. So I have worked for my job for about 19 and a half years. This June will make 20. And it's been wonderful. I will stick with it as long as I can, but it's a small business and they could use Dave. So it is in danger. And I also homeschool my daughter. So I work from home. So there's potentially coming up a lull in my income, which is more than half of what I've said. What do you do?

Jill of all trades. Girlfriend. I mean, they own a bunch of commercial properties, so anything and everything that needs to be done from marketing to accounting to everything. Well, I am not going to make my decisions based on something that might happen. They've been running this business on a shoestring for years. They're probably going to continue to run it on a shoestring. Unless you know something from doing the books that's inside of there that's

recently more sick than other things you've seen in the past. I don't think it changes anything. Because here's the thing. If you lose that job, you got to go get another one anyway. Right. If you feel like you're insecure in that job, there's nothing that stops you today from starting to look for something new. So I don't think you have to plan for a low in income.

I think there's only going to be a low in income if you see something coming and you do nothing until it actually happens. I think right now, if you feel like you're insecure, you can start looking. But I'm with Dave. I think that when it comes to this debt, we need to work the debt snowball as usual. Of course, the $51,000, that's your mortgage. We can kind of hold off on that side of it. But it sounds like all of this debt is kind of, it's not, it doesn't sound like it's

separated business and personal. It sounds like you're on the hook for all of it yeah there's no such thing as a business loan in this setting right you sign personally for every bit of this debt it's all personal debt you just labeled it business because it had to do with the farm right so yeah let's roll it into you got seventy thousand dollars in credit card debt you know i mean let's get it paid off and you got a balloon come and do in 24 so lay the whole thing out to be done by 24 that that's um you know was a june of 24 just lay your game plan out go what have we got to pay to be done i mean let's go ahead and be done by march right uh so we don't have any don't want to run right up on that balloon but uh this is very doable very doable and um the thing is the whole process of being this intentional and this intense

is brand new and that's when you have the most tendency to try to scheme and scam your way through it rather than work your way through it and so quit trying to figure this out just do it i mean and do it with gusto even more gusto than you've done to this date. Get after it. And you can sell stuff. You can do all kinds of things if you have to. And you can work out a different job, another job. If this one starts to look more and more and more weak, like Jade said, go land you something.

But let's get this done. Emily's in Santa Barbara. Hi, Emily. Welcome to the Ramsey Show. Hi. Hey, what's up? I have a question about what I should do, what me and my husband should do with our

year-end bonus because we can't go exactly in the baby steps because we already own the home. We bought it pre-date. But besides that, we are debt-free. The home is in the baby steps. It's baby step six.

Yeah, but I meant, you're saying you bought a house before it was time to in the baby steps. Has it paid off? No. Okay, then you have the regular baby steps. Where are you in the baby steps? So that's paid off, so with that $34,000, we can put $5,000 to finish our emergency fund, so we'll be at $20,000. So you're debt so you're debt free but the house yes okay and then you can finish your emergency fund that's maybe step three yeah so finish the emergency fund and then we want to put a max out both of our ross 2022 so that'd be 12 and then we're going to put um 2k for our each of our kids 529 so we have two kids. Good. And then we have $15,000 left, so that would be $1,000 per kid.

And then we have $15,000. So we do have a truck that we want to get up and running, so we wanted to see if that is okay. It's an older truck. It's just a hobby, classic old car. Or should we be throwing that at the house? No, once you get past baby step three, you leave intensity and move to intentional. Okay. And so if this is intentional, and you say, okay,

we're going to work on the hobby truck a little bit, or we need to buy a couch, or we're going to go on vacation, or we need to buy a new car because the one we got is a dumpy one, we've got to move up a little. This is where you would do all of that, knowing that every dollar you spend there is not going towards your mortgage so you're going to be in debt a little longer but that's okay because it's intentional versus intensity okay but you don't do this with the mindset of oh we're never going to get our mortgage paid off

no we're going to get our mortgage paid off anyway okay yeah that Yeah. That's really good. I think a lot of times when people start the baby steps, they get so focused on being intense that when you get past that phase, it's kind of hard to leave that mindset to the side. And it's not to say that you get lackadaisical, but you were never intended to live under the gun for the entire... I mean, you're supposed to enjoy some of this money. So it's about being intentional about it. You and your husband have decided, this is what we're going to do. This is worth the opportunity cost, and you've made that decision together. So you're doing just right. Yep. Or it makes you look and go, I'd rather pay off my mortgage than the truck, so maybe it's time to get rid of the truck.

Either one's okay, but now it's time to be intentional, not just intense. So very good question. Merry Christmas to you, Emily. This is The Ramsey Show. Merry Christmas, America. Jade Warshaw, Ramsey Personality, is my co-host today. Open phones at 888-825-5225. We've got deals out there right now, Jade. In the store, serious stuff going on. Financial Peace University gift voucher as low as $69.99. Dr. John Deloney's best-selling book on your past, change, or future,

deeply discounted at $12.99. The new Ramsey sweatshirts and hoodies. That's kind of scary. All audio books are $5. You can get those up until the last second because they're all downloadable and that includes the total money makeover audio book all for five bucks these deals are great they're amazing if you don't take advantage of this you got i don't know you're missing out that's all i'm saying got some question about your christmas

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RamseySolutions.com. Scott's with us. Scott is in Phoenix. Hi, Scott. Welcome to the Ramsey Show. Merry Christmas, everyone. Merry christmas how can we help so i don't do the baby steps i just been listening to you and i'm debt free i just have a mortgage and my question is that i just came into some money which is about about $30,000, and I want to invest it in retirement because I'm hitting 53 and I really don't have any retirement.

I have been paying into my 401K. Every time I get a raise at work, I've been upping my 401. So for four years, I'm at right now at $400 a month going into my 401. But I'd like to take that $30,000 and put it into something that would grow quickly and, you know, that I would feel confident about. I don't want to spend it. I don't want to, you know, just go out and blow it. I'm really starting to, you know, hit that age.

I'm like, I really do need to think about retirement. You married? Yes, I am married. My wife has her retirement through her work, so she's been working on that. You know, she's been at the job for about 15 years, so she's got her retirement established. Okay, jump online at Ramseysey solutions.com and find a smart investor pro in your area open a roth for this year and a roth for next year and do one for your wife as well so that's 14 that's 28 000 bucks okay and put it all in good growth stock mutual

funds across four types growth growth and income aggressive growth and international now can i add to that you know the following you have extra money the following after 24 after 23 you can in 24 because i just funded 23 and 24 just then okay because i want to be able to because i have extra money left over uh since i'm not in debt anymore. I'd like, and I'm... I want you to throw that towards your mortgage. Okay. I want to get 15% of your household income going into retirement, throw everything else towards your mortgage.

I'm assuming you have an emergency fund, and you already said you were debt-free, but the mortgage, right? Yes, I got $40 dollars and in my emergency fund because i sold the house and i just purchased this new house about six months ago so we were able to sell my old house for 150 000 i put some of it into the new house, and then I just paid all our debt off, cars, everything. And then I have, as I said, I got $40,000 left in the emergency fund for anything. Good. So that's where, and then, you know, and then I've been doing 500 extra a month on the new house. Yeah.

So here's the thing. The baby steps tell us to put 15 percent of your household income into retirement we just loaded up a couple of roths you've already got your 401 and your wife's 401 going so i'm going to guess and say you're probably getting up to that 15 percent or beyond beyond that anything i can find in my mortgage i want to get this house paid off because the two key things that we find that cause people to be millionaires, and it's not long from now for you, you're going to be there pretty quick, is a loaded up retirement account or retirement accounts and a paid for mortgage. That's right. I want to make sure though that

you don't spend all of that money. I mean, I want to make sure that you keep some of it for three to six months of expenses. That's the one thing. I don't want him to, it sounded like once he paid off the debt, he had that 30 or 40K left and that was kind of his nest egg. So I want to make sure that he keeps some of that for his three to six months of expenses as well. Yeah, absolutely. If I was confused, I thought you had 40 grand plus the 30 grand. If you don't, then that's a different thing. You need an emergency fund of three to six months of expenses. That's baby step three. Four is you're going to put 15% of your income into retirement between Roth IRAs, 401k for you, 401k for your wife. Add it all up 50.15 times your annual income. You need to be there no more. Everything else goes towards that

mortgage. Let's get that mortgage cleared because that paid for house and, you know, half a million to a million dollars in your mutual funds in your 401ks and Roth IRAs is where you're going to, that's where you're going to reach that million dollar net worth and beyond, of course. Jacob is in Elizabeth City, North Carolina. Hi, Jacob. Welcome to the Ramsey Show. Thanks, Dave. I am calling because my wife and I are in Baby Steps 3, and we just found out that her van needs a new transmission, and the cost of the repairs is going to drain what we have currently in our emergency fund. So I say go ahead and do it.

That's what the emergency fund's for. Let's get the van fixed. How much is it going to cost to fix the van? So it's going to be $4,500, including labor. And that's your whole three to six months of emergencies fund? No, no, we're in baby step three. Okay, so you haven't completed it yet. Okay, I see.

Yeah, we have $4,000 so far, so it will be a $3,000 deposit, and then we could get the other $500. I mean, the other $500 to fix it. What year is this van? What year is the van? It's fix it. What year is this van? By the time the repair is complete. What year is the van? It's a 2005.

What's it worth? I'm not sure. I haven't been looking to sell or anything, but it's a Honda Odyssey with only like 160,000 miles on it. Okay. The first thing I'm always going to do with transmissions and engines is this is like the car has cancer. You don't go with one. You get multiple opinions. You need a second opinion and a third opinion.

Not necessarily does the transmission need to be replaced, but is there a more economical way to get this transmission replaced? Who gave you this bid? The dealer? No no it's a local mechanic that's good we've been going to for a couple years we trust them it doesn't sound outlandish but it is a big enough expense i want you to get some other opinions and uh i'm guessing you have two cars right and this is one of them yeah so we have that her van and then i have a 1998 Honda Accord with like 205,000 miles on it. What's your household income? I have like a base of 60, and then I get bonus on top of that. A base of what?

60,000. Oh, 60. I thought you said 16. I did, too. Okay. I feel better already. Yeah did, too. Okay. I feel better already. Yeah, me too. Okay.

So, yeah, you fixed the van. That's what the emergency fund's for. Okay, that's what I figured. But I am going to get a couple of bids, not just the one mechanic that I trust. And it may lead you right back to him, and I kind of think it's going to, and that's okay, but you just want to, in the multitude of counsel, there is safety, the Bible says. Where there are options, lots of options, you will choose a better choice than when you have only one option or only two options.

So I'm going to go talk to two or three other people, figure out is there a more economical, reasonable way that is reliable to get this transmission replaced i doubt it um i i don't think that's a bad price off the top of my head but hey man you might find somebody do it for 3500 and be worth looking i'm also wondering what that van was worth um it's honda odyssey they're oh five a wee bit pricey, so I don't know. Almost 200,000 miles? Yeah. Something to look at.

Something to look at for sure. Is it worth fixing? Probably, though. It probably is. This is The Ramsey Show. ស្រូវានប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្ Merry Christmas, America. I'm Dave Ramsey, your host, Jade Warshaw. Ramsey Personality is my co-host today. We're glad you're with us. The phone number here for your life and your money questions is 888-825-5225.

Sean is in Baltimore. Hey, Sean, welcome to The Ramsey Show. Hi, how are you guys? Great. How can we help? So I'll try and keep this brief. I have a unique situation. My wife and I lost a baby at 22 weeks back in April and had to use some of my wife's unpaid FMLA because she's a teacher.

She just gave birth early at 27 weeks at the fifth of this month and only has the remaining eight weeks of FMLA to use. Our daughter is in the NICU until the end of January, and my wife will have to put in for a leave of absence to spend time with our baby. Should we stop investing until she begins getting paid again, even though we have our fully funded emergency fund? I'm sorry to hear about the loss of that first baby. That's really tough, but I'm also celebrating with you on this new birth, which is definitely something to celebrate. How long of a leave of absence is she planning to take? About seven weeks. What do you make?

I net about $3,000 a month. Yes, you should stop investing. Okay. You're in the middle of a storm, and so you've got to batten up the hatches as a temporary measure. That's right. The same way we would suggest that if you were about to have a baby, that you would kind of pause the baby steps and stack up extra cash. This is kind of the same idea, but it's kind of on the back end. Yeah're on baby step four so it is a little different but yeah you don't you need the margin right now um because you've had an unbelievably emotional year from miscarriage to icu nicu is is a i mean you you've had and all having to do with babies which

keeps your stomach in your throat all the time right yeah? Yeah. So you guys need the mathematical margin to pay attention to the child and to pay attention to where you both are emotionally in the middle of this trauma so that you process it and you hold hands and you're looking at each other's eyes and you hang on to each other. Your investment portfolio does not matter a flip for the next six months. That's right. Okay. Thank you so much humans are what matter right now little ones big ones both okay so just lean in be a good dad be a good mom be a good husband be a good wife um you know we got one we got one job and that is uh walking the

rest of the way through these uh you know these these storms that you've been through they're two different kinds of storms and uh but but NICU is a storm too in and of itself right absolutely every time I go to NICU with a friend or a family and and walk down there it takes my breath away does it still yours as a dad yeah we've we've been gone there for two weeks now we've still got about another month to keep going back and still hard to breathe when you walk in right yeah yeah i mean i got a we had a team member that had one in there 14 months we had uh we've got and by the way that kid's doing great now. So there is a good end to these stories. And the family's, quote, unquote, back to normal, back to working, back to investing, back to living life and so on.

And another friend as well that, you know, I guess we were down there for seven or eight months in and out of there. And it's just a it's a it's a process. And so it's a period of your life that that is out of there. And it's just a, it's a, it's a process. And so it's a period of your life that, that is out of control. So you've got to control what you can control and yeah, you need the margin. You need the margin. Give yourself permission to do nothing well right now. That's so good. Yeah. And now do not get into rational, rationalization spending where, oh, we've got to have this item and we're going to go $40,000 in debt.

No, no, no, no, no, no, no. Don't go back on to there. But do protect the household with the cash that you can for right now. I love that simplification. Make everything a simpler process. And like you said, make sure that your focus is on really what matters which is your family well when you're in the middle of some kind of storm crisis trauma whatever you want to call it your vision immediately you lose your peripheral vision and you just get you get to focus on the one thing to survive oh absolutely your brain does that for you and you need to do

that with the math as well and that's healthy that's. That's smart. Trent is in Phoenix. Hey, Trent, what's up? Hey, guys. Long-time listener, first-time caller. So thank you for what you do, Dave. I appreciate you. Well, thank you. Merry Christmas. How can we help? Yes, sir. So I'm debt-free. I have a kind of a side hustle for years. I've bought things and kind of resold them. But recently, I started getting into buying storage units and then turning and selling them. My concern, though, is it's kind of taken off and I'm kind of on a trajectory to, you know, kind of be in the ballpark of $30,000 to $40,000 in profit. And what I don't want to do is tie that in with my personal finances.

And I guess the bigger question is how do I avoid, you know, tax issues? Should I do an LLC? I just honestly don't know where to go. Well, congratulations on your side hustle. That's pretty great. I mean, when it comes to a side hustle, and I kind of speak to this from my own perspective, my husband and I had a small business and still do. It really, when you're starting with a business, whether you're sole proprietor or you do decide to do an LLC, even with an LLC, and I mean, you it and making sure that you're you're covered and that if something were to happen and somebody sued you they can't go after your personal

your personal assets so in that in that way you might look at an LLC or an S-Corp or something like that yeah I would probably look at an LLC in that case but I would not the LLC does not give any tax benefit there There is no place to hide the taxes. Yeah, you got to be, rich people don't pay any taxes. Horse crap. Yes, they do too. The more you make, the more you're going to pay. They pay more than you used to make, but yeah. So absolutely you pay taxes. An LLC, a sub S, a sole proprietor, all have 100% pass-through to your personal return. there is no avoiding squat uh now in any business uh in any of those structures uh any expense you have is a valid

expense reduces your income by that much um but or if you have an item you purchase that's depreciated and you depreciate it over a 1 3 5, 5, 15, 30-year schedule, whatever it is, then you're going to get that savings as well. But there is no thing of, oh, well, the way you do it is you do a double backflip family trust LLC through Nevada. No, that's a bunch of crap on some infomercial. It does not work. He could probably get with a local provider, though, endorse local provider, and find an accountant to kind of help him open it up or walk through that? Exactly. But Jade is exactly right, Trent. When I started doing LLCs or sub S's was when it was for risk management. You need business insurance for liability in

general. And if somebody gets hurt with one of those containers or something like that. And then the second thing is if your personal assets are big enough or if the business has the appearance of being big enough that it starts to have a target on it with these idiots that sue everybody left and right for nothing. I got a hangnail, so I'm going to sue you for $2 million. Well, now you need the business separated off from your personal stuff. So it shrinks the size of the target that way, and you would open an LLC for that. But you do have an extra tax return when you do the LLC. You've got extra paperwork. You have to run every single thing regarding the business in the name of the LLC.

That's right. Otherwise, it's invalid. It will pierce the corporate veil if you don't, and so you can't go fooling around do some stuff in trent's name some stuff in the uh llc's name you know you're done doing good then so right get a you know get like she said get with one of the tax providers one of the elps and they can help you with that process i think that's uh it's kind of like there's so much mythology around wealth and taxes is one of them. Oh, yeah. You know, everybody inherits their money that's wealthy. That's absolute BS.

Oh, we know that's not true. We know that statistically, right? And rich people don't pay any taxes. The more money you make, the more taxes you're paying. It's pretty simple. If you're turning money into cash every year, that is taxable income. There's very, very few things that are otherwise. One of the joys of earning more. She says sarcastically, this is The Ramsey Show. ស្រូវានប់ពីប្រូវានប់ពីប្រូវានប់ពីប្រូវានប់ពីប្រូវានប់ពីប្រូវានប់ពីប្រូវានប់ពីប្រូវានប់ពីប្រូវានប់ពីប្រូវានប់ពីប្រូវានប់ពីប្រូវានប់ពីប្រូវានប់ពីប្រូវានប់ពីប្រូវានប់ពីប្រូវានប់ពីប្រូវានប់ពីប្រូវានប់ពីប្រូវ jade warshall ramsey personality is my co-host today so this article oh man dave when i saw this article i i said okay okay i gotta show this to dave i read it it says nearly half of young adults in the u.s are living at home with their parents and all that saved money on rent is fueling a luxury boom it says a record number of young adults in the u.s are currently living at home and all that saved money is sparking a luxury boom that's unbelievable to me because if you read down in the article it says 48 of these young adults are living with

their parents this is 20 this is in 2022 so this is not like from 2020, right? We know that people kind of hold up together because of the pandemic in 2020, but it's still taking place. And it says that it's because they have all this extra money. And instead of paying off, I don't know, their debt. This is a historical high since the Great Depression. Yeah. These numbers have not been seen since the Great Depression. 48%. So let me get this

straight you live in your mama's basement but you got a coach purse you got a coach purse and and these these companies that are you know they make tiffany and dior and hennessy and all these luxury brands they saw a 20 spike above and they're contributing they're attributing it to baby children from baby children and at first dave i'll be honest when I when I first read this my my anger and my frustration was at the young adult but then I thought about it I thought about it more and I said no no no no no this is a helicopter mama got out of control helicopter daddy got out of control helicopter mom this is also you know it's a result in my mind. I can just hear the prop.

It's three things. It's the parenting, right? We've sent that message that basically we're going to do everything for you. This is not parenting. This is coddling. We've coddled the confidence right out of these people. We've coddled it right out. That's tweetable.

Think about it. When you've got parents who say, I don't trust that you can do this. I don't trust that you can make it out there on your own. I don't trust that you can use your God-given intellect and skill to earn money and pay rent. Why don't you come back and live here? And oh, by the way, when you live here, we'll cook your meals.

We'll pay your rent. If you need a little gas for money, we'll give you that too. Then then Dave you've got the government saying hey you can't pay for your student loans we'll do it for you and then you've got this this mixture of then now social culture telling you everything you everything you say is right everything you think is right. Everything you think is right. You can do no wrong. Now tell me, Dave, how does that create an adult who can go in and function in society? What this is creating is, for the particular young people that are falling prey for it, is what's known as a train wreck. It's a train wreck.

You described a train wreck. Because here's what's going to happen. You cannot avoid life. You can't. It's coming for your butt. Well, that's what's going to happen. You cannot avoid life. You can't. It's coming for your butt. Well, that's what's happened. And mama can't protect you. And Biden can't protect you.

Nope. And your opinion doesn't matter until you've got actual experience to base that opinion on. That's right. But the world has told you that everything you think is right. I really don't care what your opinion is. I know that's right. But the world has told you that everything you think is right. When I have socks older than you, I really don't care what your opinion is. I know. That's right. And they're getting out into the world, and they're going, wait a minute.

This is different. The problem is, when they do get in the world, and they will. They will. They're going to run into reality, which reality says, truthfully, reality says you are not an expert on something just because you breathe air. Your opinion is not valid. That's right. Unless it is based on some kind of facts. Facts.

That were based on, not feelings. That's right. But you've been told that your feelings are all valid, and they are valid feelings. Yeah. But anybody that leads their life by feelings is known as a child adults devise a plan and follow what children do what feels good i know that's right here's here's who we need to rant at and you're exactly right rachel cruz said this 10 years ago 15 years ago the first time we don't have a student loan crisis we have a parenting

it's parenting and i said all the time you have to you can't absorb everything for your kids now i've got young kids dave i got two-year-old and you send them to the salt mines every morning no go to work let me tell you two-year-old go to work you gotta let them feel it you gotta let them feel it it's very your toys it's very easy to want to step in and not let them fail, not let them feel disappointment, not let them feel hurt. You've got to let them feel it. Here's the problem. When you're a parent that you think you are doing your child a favor by making it easy

for them, you're actually making it harder for them because you're stupid. Well, you're sending a message. You're so stupid that you think that they're not going to have to learn the lesson. They have to learn the lesson. So you're better off to learn the lesson while at home and 15 years old and feel the pain of calluses on your hand. Feel the pain of actual discipline and responsibility at a reasonable level where I can protect you from it being crushing pain

that's right as your dad but I'm going to make sure that you feel the abrasion so that when you feel real abrasion later real adversity later you've got the freaking character to stand in the wind and the resilience because if you don't allow that you're again you're sending that message I don't have confidence in you and there's an undercurrent that the child feels that, okay, I can't do this. So then when they do get out in the world, and all those things happen, they don't know how to, they don't know how to be resilient, they don't know how to handle it, because they have not had to build that level of confidence. And like you said, character, and it's just, I gave this example the other day I was talking about my kid and um you know he wants to help me set the table at night and look

he's he's four years old he's not going to do it right he's going to put the stuff on the edge of the table probably going to knock the glass off it's going to break all these things and I it's a great opportunity for me to step in and go you know I'll just do it I'll put it like this I know how to do it but if I do that I'm telling, I don't have confidence in you to either do it right, and I certainly don't have confidence in you to make a mistake and learn from it. There's no dignity. There's no dignity there. When you are coddled.

You got to let them do it. There is no dignity when you have no autonomy because you have absolutely no actual skills. That's right. And by the way, managing your social media account is not a skill. Okay? You don't qualify for that one. Okay? That one doesn't count.

Making comments on other people's actual achievements is not a skill. Yeah. That's not an achievement. You didn't achieve anything when you did that. Yeah. And so when you live in your mother's basement and you write a blog on personal finance, the rest of the world laughs at you and your mommy thinks you're cute. So a message to these young adults living at home, you've been enabled.

We're telling you, you've been enabled. You have been coddled. You have been put in a situation that is not for your best interest now it is time for you to do something to change that it's time for you to get up it's time for you to get out the problem is not i can't afford rent that is a symptom the problem is you've got debt you're not earning enough money and you're not doing enough to go out and change it. Mom and dad can't do this for you. And don't blame it on the fact that folks are getting married later in life. That's a whole other thing.

No, it's not. Look, work more, go to the bar less. Was that okay? That's it. Because you took your beer pong skills from college and you brought them home to your 23-year-old self, and you converted them to happy hour skills. And so we live from thank God it's Friday to oh God it's Monday, and this is the recipe for freaking failure. So if you're a young person listening to us, we are not picking on you. We are begging you to get away from your parents.

They're stupid. They did you wrong. And parents, if you're listening, in the new year, it's time for you to serve a notice. That's the gift. Yep. The gift that they need to open up is a pink slip. Yep. A pink slip to their kid.

You got till June. Yep. No more than June. June's max. But, I mean, give them an exit ramp. Give them an on ramp. Give them an off ramp. Yes.

Whatever you want to call it. But let's lay out a game plan. Coach them, help them, show them what to do. And let me just tell you, an eagle that does not leave the nest is eventually known as a turkey. They are useless. You do not want to be 38 and living in your mother's basement. By the way, young men, no woman wants to date you because you're what's known as a wuss. You are not eligible. You are not eligible. You are not eligible.

You look like a parasite. You do not look like a person who can carry half of a relationship. Oh, my goodness. My daughter, I wish my daughter would bring home a dude that's living in his parents' basement. Uh-oh, Big Sam be lighting that guy up. Big Sam be on that guy. Big Mama would be lighting that guy up. Well, that's it.

Sam would be in the background cheering her on. That's what it was. He would be. All right. Hey, seriously, folks. Love your children well enough to cause them to grow up. That's right. And out.

This is The Ramsey Show. Dave here. You can find all of our shows with the Ramsey Network app on your smartphone. It's the only place to listen to the entire back catalog of episodes. Download the Ramsey Network app in your favorite app store today.