The Ramsey Show - App - Why You Should Ride the Rollercoaster of Investing (Hour 3)

Episode Date: January 9, 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. The phone number here is 888-825-5225. George Camel, Ramsey Personality. Host of the George Camel with a K YouTube channel that has absolutely exploded in listenership and subscribers.

Thank you. Viewership, I guess you say on YouTube, but thanks for doing that. The team just let me know, Dave. We just hit, I think, a record, over a million unique viewers in the last 28 days on the YouTube channel. So thank you to everyone who's been tuning in. That's the fastest we've ever gotten to a million on anything on the Ramsey Networks. Wow.

Fastest. We've had some get bigger, obviously, this show and so forth. Sure. But the fastest to a million is you. Way to go. Wow, I'll take it. Nice sprint. I'll take the win.

Nice sprint. Well, the team does an amazing job, and we make those videos entertaining while informing the people about personal finance. So I appreciate it. If you like this show, you'll like that one. Jessica's in New York City. Jessica, how are you? Hi, I'm good.

How are you? Better than we deserve. What's up? So my question is, so in late 2022, my boyfriend and I invested $100,000 in my family's fast food franchise business. And then so in 2023, we've since made $11,000 back, and that's currently in a high-yield savings account. My question is, should we keep it in that savings account until we've accrued the initial investment back or should we reinvest the $11,000 that we've made? Okay. How much did you put in? I put in $30,000. My boyfriend put in $70,000. Okay. And you made an 11% rate of return.

Wow. So the franchise is not doing that well huh well yeah i don't know you ought to be making a lot more than that you ought to be making a lot more than 11 on a small business operation okay um you okay so so the 11 000 what is really not a joint amount. A portion of that is yours and a portion of that's his, correct? Yeah, but for the purpose of this question, we can view it as a joint amount. I just want to know, like, if it was fully the $11,000, what should we do? It has nothing to do with recouping your investment. I just wouldn't put any more in this.

So I would take that money and just do something else with it and i would not view it as a joint account i would view it as separate because you're not married and so it's not legally a joint account you don't you do not have an llc managing this you don't have a joint you don't have any kind of joint venture agreement this is two individuals that dump money into an account so it is separate legally you don't have a choice in that matter um and so you ought to separate it and his portion should be the return on his money and your portion should be the return on your money and then you guys go and do with that in your personal finances each of you not joint uh what you should be doing but no i wouldn't put it back in there

um you've already put enough in there put a lot in there now if she's talking about investing the money instead of having it sit in the savings account if we're talking five plus years you know she wanted to take that money and put it into mutual funds or an index fund is that something that yeah but i'm guessing they probably have some other financial goals like getting out of debt or saving money for the house that kind of thing that that money should be moving moving in those directions yeah even rather than as an investment but should i would i roll it back into the franchise no i sure would not a small business ought to be returning double that. So, no, I would not. Thanks for the call.

Open phones at 888-825-5225. Jasmine's in Cleveland, Ohio. Hi, Jasmine. How are you? Good. How about you guys? Better than I deserve. What's up?

So, my father passed away unexpectedly in December. I'm sorry. How old was he? Thank you. 56. Oh'm sorry. How old was he? 56. Oh, wow. Yeah. I'm sorry. We are feeling debt loss right now.

He had one life insurance policy. I was awarded 25% of it, and also my 5-year-old daughter was awarded 25 percent uh both of our portions value at uh just a little bit over eighteen thousand dollars each um my portion we plan to uh me and my fiance we plan to pay off debt uh with her portion though um obviously it's with her. I want it to stay with her, but she's five years old, and I wanted to know, get some advice on what are the best options to possibly invest it or... Yeah, I would put it in some mutual funds in a college fund, in a 529. Go to ramseysolutions.com and click on SmartVestor and find some of the SmartVestor

pros in your area that we endorse. We tell folks to go see because they have the heart of a teacher and I would get her $18,000 sitting in a 529. And then I'll step over into the other part of your statement, much like the last caller. You and your fiancé aren't doing anything until you're married. You are doing things with your money on your bills. Don't you dare pay his bills with this. Well, we do have plans to be married.

When? We planned it in the next month, actually. Okay. After you're married, you have shared accounts and shared assets. But until that ring is on your finger, and this is official, do not use any of your money to pay his bills. Please. Please, for your sake.

Okay? Now, once you're married, then it's all in. All the money's in the middle. His, yours. You know, my debt, your debt, my money, your money, all that. But until you're married, because if something happened until you're married, you know, you have zero protection on this. So it's just dangerous as crud to start handling your financial transactions as if you're married when you're not in both of these cases and we take those calls

when it was supposed to go perfectly according to on paper and then life happened and it didn't work out and then someone's going wait i paid off your debt and now we're not getting married what do we do now well i mean all kinds of things happen that we don't know we're going to happen and um you know sometimes it's ugly things and sometimes it's sad things and other things so please please please folks do not have joint accounts for your eleven thousand dollars when you're not married do not take your dad's eighteen thousand from your dad's passing away from his life insurance that he left his daughter and pay bills for a guy you're not married to yet. After you're married, it's not a guy you're married to.

He's now called your husband. Now we are one. And now, yes, we can pay any bills with it, whatever we decide we're going to do. But, guys, you cannot treat these things the same because you're going to do but guys you cannot treat these things the same because you're you're going to get yourself in a pinch and i just we love you too much to see that happen to you and um we run into ugly situations where people misbehave we run into sad situations where people die we run into all kinds of things and um we've seen it all and and you know as long as you you know things don't always turn out exactly like your little plan so until you're married don't be combining assets do not

buy a house with someone you're not married to dumber than crud don't do that i was just talking to you right then you out there you know You know who I'm talking to. This is the Ramsey Show. George Campbell, Ramsey personality, is my co-host today. Open phones at 888-825-5225. We're glad you're here. Ruth is with us. Ruthie is with us, rather, in Orange County. Hi, Ruthie. How are you?

I'm doing great. Thank you for taking my call. Sure. What's up? So, you know, I currently live in California, which is, I grew up here, but it's high cost of living, and we're, aside from the house, consumer debt's about $150,000 that we have. And I was thinking about relocating to Tennessee, as a lot of Californians have, and maybe just either use the profit from our home here.

It did increase in value in a short amount of time. And maybe just get a house cash and then help speed up the process of getting us out of debt. I don't know. That's a good idea. What's your home in Orange County worth? It's about $1,135,000. Okay. And what do you owe on it? Uh, about seven, a little over 700,000.

Okay. So you got $500,000 in equity and you have $140,000 in, um, debt. So that leaves you 350,000 to buy a house with when you make your move, right? Yes. Okay. All right. Well, $1.2 million in Orange County is probably $350,000 in some other areas. Not New York City, but it could be in Tennessee for sure.

It could be a similar property, actually, depending on where in Tennessee you landed, or Texas or Florida or whatever, but wherever you decide to go. So financially, obviously, that changes things. What does your husband do for a living? What do you do for a living? I am a registered nurse. I work from home. I bring in about $139 a year.

He used to be in sales, but, you know, he's in his early 50s and kind of aged out of it, really. He's working with special needs kids, really, at one of the local high schools now. He just got the job. He's bringing about $40,000, really, a year. Well, that's not that hard to replace then. And you can do your job from anywhere, right? Yes, from anywhere as long as they do us. Okay.

So I keep my same salary, really. Okay. So you can handle the career change. You can handle the real estate change. You'd be dead free to make the move um then the only the bigger question than all of that is um you know just because it makes financial sense doesn't mean that your family's gonna want to do this and that you're going to be happy and that you need to do this i mean right you know i've got a good i've a, I was with a friend of mine last night that just moved to Nashville from California. And his wife grew up in Orange County and, you know, they're settling into Nashville.

It's a different culture. Sure. Yeah, you know, that's part of the hesitancy. Either I, the other plan was thinking about maybe just chugging it through, and, you know, I'm on baby step two, really, just trying to get out of debt. I mean, so the answer to your question is financially, mathematically, everything you're saying makes sense, but that doesn't mean you should do it. The reason you should do it is it makes you happy, it causes you to be excited, and you get out of debt and pay

cash for a house. Not, I get out of debt, pay cash for a house, and I'm miserable. True. Would you still want to move if you didn't have any debt? Would you still want to move to Tennessee? The answer is yes, this could be a great move.

Or if you wanted to move to a different state of income, start a new adventure but um it sounds like like my friend's wife who grew up there her the axis of the world for her runs through orange county i mean the axis for me runs through the middle of nashville that's where i grew up and so uh you know where i'd have moved to orange county it'd be different and be like being on a different planet, you know. And so. I'd pay to see that, Dave. Yeah, it'd be different. It'd be weird. But, yeah, but I'm saying, you know.

You could pay off $150,000, make $180,000. That's not impossible. You could do that in two years. Three years, you know. It's definitely doable if you're willing to make the sacrifices. The question is, where do you want to be 10 years from today? Living, physically, geographically. Where do you want to be living and um then that needs to make your overall decision in my friend's case they left california because

of the political situation the ridiculous actions around the fauci pandemic and the crazy butt taxes they paid cash for their house here in one year of income tax savings, not living in California. Wow. Well, we got no state income tax here in Tennessee, which is another blessing. And so that, you know, for them, it was like, you know, the state of California ran us off is the way they feel about it. Well, we saw the migration numbers, too. It's the second largest state for losing people. Nework lost the most california lost the next most and uh most of them went to tennessee texas and georgia and florida is where there's the three most uh i don't know incoming

with it with the shift in migration we've had had a huge migration. But the migration is completely, in all of these cases, caused by the politics and the taxes associated with the politics. And so, you know, you cannot tax rich people when they can move away. They will leave. They don't have to stay. And so this idea, we're going to tax all these rich people, and then they all just load up the truck and head away from Beverly Hills, that is, swimming pools and movie stars.

So there you go. I mean, they leave, buddy. I mean, that's what happens. And so you see these migrations. And so what you've got is a perfect storm between uh several of the political issues along with the uh pandemic issues which are really political issues are what they came down to and then you mix in the tax issues which really is a political issue when it gets right down to it but these four you know one or two of them people can stomach but when you start putting three or

five of these things on there then people move out of michigan they move out of uh which is the third one uh they move out of california and they move out of new york it's i mean this is not an opinion it's a statistical fact um u-haul is making a killing i mean it's like they they they you know they think Governor Newsom is just incredible marketing. Thanks for the business. Yeah. Oh, man. So that's what's going on. So, Ruthie, but I'm not saying you're dumb if you stay,

because honestly, I hear sadness in your voice when you're talking about it. It sounds like you're sad. And you don't want to move somewhere and just be sad, even though the math works. I wouldn't do that. If you can look at it as an adventure and a new chapter in our life We're just going to be sad, even though the math works. I wouldn't do that. If you can look at it as an adventure and a new chapter in our life and we're excited about this and it'll be fun and be different and whatever, then, yeah, that's fine.

But only the math works on what you're talking about. But just because the math works, that's not the only reason to do it. It's one solution. It doesn't mean it's the solution. Exactly. Exactly. Samuel's with us. It doesn't mean it's the solution. Exactly. Exactly. Samuel's with us in Columbus, Georgia. Hi, Samuel.

Welcome to The Ramsey Show. Hi, Dave. Good afternoon. Thank you for taking my call. I'm a long-time listener. Thank you. I'm calling to get some help and advice on how to best assist my mother and her husband, who are both struggling financially and medically.

How old are they? Both about in their early 60s. Okay. What's the medical situations? So her husband has had two strokes. He had his second stroke at the beginning of last year around this time. So he's very, very incapacitated. He has some other residual medical problems. My mom, she has high blood pressure and

she's also unfortunately obese, morbidly obese and they both are, but they're both partially disabled. So, I mean, if you sit down and coach them on their money, will they take your advice? Well, I'm not sure, sir. Okay. Then you might be wasting your time.

I mean, you can't make grown-up people do stuff. There's not a law that allows that. So, you know. You can not a law that allows that. You could cover a medical bill, but we need to find a sustainable solution. Yeah, I would sit down with them and figure out where we're going and what are we going to do to get there, and then you can realize what participation you need to do. But if you start throwing money at this and they're digging a hole faster than you're filling it in,

that's not going to work for anybody. So you've got to get a holistic approach to this, and that'll help you get there. George Campbell Ramsey personality is my co-host today. Open phones at 888-825-5225. All right, let's catch up a little bit. There is a company called Standard & Poor. They are one of the companies that rates things on the stock market.

The most famous thing that they rate is a company called Dow Jones that has an average of the industrial companies, which creates the Dow Jones Industrial Average, which is a little strange because a lot of the companies are not industrial anymore that are part of that average. It's an old-timey term. But it comes from when America was more manufacturing-driven than it is today. The S&P Standard & Poor rates the top, the largest, 500 companies that are publicly traded, meaning their stock is sold on what we call the big board, the New York Stock Exchange. So these are the largest 500 companies that sell stock in America. And that means that as this group of companies goes, is a good indication of what the economy is doing.

It's a good indication, certainly, of what the stock market is doing because basically they make up the stock, the vast majority of the stock market. So the top 500 companies on the New York Stock Exchange is called the S&P, Standard & Poor's S&P 500. Now, that's important because that's actually a better way of measuring what the stock market is doing than the Dow is, okay, or the Dow Jones Industrial Average or any other measure for that matter. This is a very generic measure, and people in the financial world use the S&P 500

as a plumb line to tell what the market is doing. So if a mutual fund, for instance, outperforms the S&P 500, that means the mutual fund is making better returns than the market as a whole. If it underperforms the S&P 500, it makes less returns. So all that's important. Nice article, James, our producer, pulled up for us. If the S&P 500 hits a new all-time high in 24, you can expect a strong year of gains to follow,

according to Ned Davis Research. The investment firm crunched the numbers and found that when the S&p 500 hits at least one record high in a given year that year's median return is about 15 so what they're saying is is that when the when the stock market tops out and has a new record that is almost always a year that you get great returns well duh obviously if the stock market's hitting a new record you ought to be getting great returns it kind of makes sense right so foreshadowing guys yeah but i mean it makes sense it's an it's an interesting it is it is a valid statistical

correlation so i like that i like the study the s&p 500 has tended to post double digit gains in years with record highs uh Ned Davis Research said, the data point highlights two typical characteristics of the stock market, that strength begets more strength, and that stocks don't typically crash from all-time highs. So just because it goes way up generally means it's going to go up. It doesn't mean it's going to go right back down. And that makes sense, of course, too.

Of course, this stat is not a slam dunk. The S&P is less than 2% away from hitting a new all-time high. If it were to do that in the next day or two or the next month or two, then the historical data indicates that you're going to have a great year, which also makes sense because it wouldn't have hit a high if it hadn't moved towards a great year. But it doesn't just jump up there and then jump down uh so all this to say we're close to

hitting a new record ever in the history of the stock market it up and if it hits that that is a great indicator that 24 is going to be a great year to have invested uh which means that if you're waiting until after the presidential election in November to do your investing, that's probably a dumb idea. If you got some money you're sitting on right now, I would buy your mutual fund like tomorrow, right now.

And if you're thinking about pulling all your money out because you saw some headlines, don't do that either. We found that if you just ride this roller coaster over time you're going to hit a new record high and a new record high and then it's going to go down and then it's going to come up and then it's going to go down and then it's going to come up this is how life works i mean it's how the real estate it's how the real estate market works is how mutual funds work it's how the whole you know stock market works the s&p 500 all this does that so here's the deal you got a hundred thousand bucks and you wait till november and this market hits and does what this study indicates and it makes let's say it makes 15 which was the average the median okay

it's a hundred thousand dollars and you don't invest it you wait till november and uh the market goes up 15 what'd you lose fifteen thousand dollars because you didn't do what i just said to do invest so you start and let me just tell you real estate's exactly the same place right now is real estate going to go down no it's not. We have a tremendous shortage of housing. There's more buyers even in a sluggish, slow market where people are sitting on the sidelines because interest rates spiked up. Now they're coming back down. They're coming off sidelines in the last two weeks like never before. But if you wait a year to buy a house because you're somehow waiting to time the market,

you've got this mysterious insight that you think things are going to go down, you're wrong. And if you wait a year to invest in the market because you're waiting on the market to come down, you're going to miss it. And if I'm wrong, give it another 12 months and I won't be wrong because it'll come up. I mean, really. So I got to tell you, what isave ramsey doing right now buying period investing period i'm not waiting on the clash of the old men trump and biden i'm not waiting on two 80 80 year olds to have an m MMA to decide what I'm gonna do

because who the crap knows one of them may break a hip well it's more like bumper cars that are running out of battery bumping into each other more than a clash it's like two Muppets the dirt was the old men Muppets right so Statler and Waldorf is that that them? That's him. Oh my gosh. So you don't wait on this. Don't watch Fox News and CNN and let your butt sit on the bench. Get in the game. Shoot the ball. Fire. Pull the trigger.

Whatever metaphor we need to use to cause you to actually do the investing. Sports, weaponry, whatever it takes. Whatever it takes to get you moving here. We'll go whichever direction you need to use to cause you to actually do the investing. Sports, weaponry, whatever it takes. Whatever it takes to get you moving here. We'll go whichever direction you need to go. And this validates a lot of what you've been saying for 30 years, Dave. We looked at historical data, and the S&P 500 average annual return is 10% to 12%. And they're saying right here, this could be a year about 15% median return. And people always go, well, Dave, I'm not getting that in my account.

Well, yeah, dummy, not in a given one-month period will you see that, but over time, the average is flunked. It's the average. That's how averages work. Averages. I think we all need to go back to basic math. Statistical. These sixth-grade math classes that people flunked.

But, yeah, that's the thing. So all of this to say, boys and girls, please be steadily investing. Please. The people that invest are the ones that have money. There's a high correlation between people who save money, invest money, that have money. Hello. Why was that deep? You know, if you don't put any money in the account, please don't expect any money to be in the account.

Why is that hard? But just keep doing it. Just keep doing it. Just keep doing it. I think there's a lot of fear. And it's why I love working with a financial pro, smart investor pro, great person to work with, to reach out to a financial advisor and investment pro and go, help me understand this. And you make the decisions.

And they're not going to pull the money out for you. You are calling the shots here. And they're going to help you understand the perspective that we're showing you on the decisions and they're not going to pull the money out for you you are calling the shots here and they're going to help you understand the perspective that we're showing you on the show today yeah you can pull up the historical data and look at the track records look at the trend lines it's really not hard to understand i mean it's really not i mean if you pull up in a neighborhood and there's cars up on blocks and the gutters are falling off the houses and the place everything you see needs weed eaters then you know and then you cars up on blocks, and the gutters are falling off the houses, and the place, everything you see needs weed eaters, and then you pull up the MLS data on that neighborhood,

and you see the values have been going down, it doesn't require rocket surgery to figure out that this thing's going down in value. I mean, you know, this is not hard. And if you pull up in the neighborhood and everything's manicured, and it looks like freaking leave it to beaver lives there you know and you go pull up mls data on that you're gonna see a line up and to the right hello well it doesn't take a rocket surgeon to figure that out either go buy a house in that neighborhood this is these are trend lines it's historical data

you can watch this stuff this is the ramsey show our scripture of the day proverbs 13 3 those who guard their lips preserve their lives but those who speak rashly will come to ruin robert frost said half the world is composed of people who have something to say and and and can't and the other half who have nothing to say and keep saying it well since we're on the air with a live mic we pretty much have to fill up the time so uh guilty as charged dave's gonna keep saying it guilty as charged all the time robert is in California. Hey, Robert, welcome to the Ramsey Show. Hey, Mr. Ramsey. I just wanted to say I'm a huge fan.

My economics teacher from my senior year in high school introduced me to you through the Ramsey Solutions Investment Calculator. Wow. Just to let you know, the main problem at hand is my father is pretty much not allowing me to get a part-time job while I'm a full-time college student. That's like the main issue at hand. The background on it, though, is my father came to this country as a refugee during a civil war in his home country. And he has a bunch of brothers and sisters. And they ran into a cycle because they never really had any guidance through financial,

where the second that they would get a job, which was minimum wage or, you know, close to minimum wage, they would spend all of their money. They wouldn't save. They wouldn't try to invest. They wouldn't do anything with their money. They would just spend it all. And, you know, even now, we're still seeing,

I have a bunch of uncles and aunts. I don't have a single uncle or aunt that is financially well off the only person my family that is financially well off is my father and that is because of my mother and because of your mother's discipline or she brought money to the table my mother's discipline my mother uh showed up it was super where there mom's movie. What country did he come from? El Salvador. Say again? El Salvador. Oh, El Salvador.

Okay. Gotcha. Okay. All right. And I had to put the Tennessee accent on there to understand. Okay. And El Salvador. No, I'm kidding. But anyway, the –

All right, so what's your dad do for a living? He is a CHP officer. Okay. And you are – and he is paying for your college? My mother is paying for my college. Well, your parents are paying for your college, and you live at home. Yeah. Yes, I live at home yeah yes i live at home okay all right well um you come like i do from a culture of honor

so honoring your father is very important would you agree with that absolutely okay that's a good thing. And so, number one, you're not going to work unless he's going along with it. And that's honoring him and that's honoring your mom writing the checks for you to go to school. You're going to go along with their plan. Okay. Now, then the next thing is, is there any way you get a hearing with him and um you know what i might do is say uh dad i have admired your work ethic and mom's work ethic and discipline and i think i can do some work and not be irresponsible with it.

And would you coach me, mentor me, and let me try it for one semester with you watching my behaviors and see if I get out of line? And let's run an experiment, Dad. And the only way I would do that, though though is if i can do it and honor you dad yeah okay and so i want to honor your request but i'm asking for you to help me try this as an experiment if the experiment goes the way you think it's going to i won't ask again and i'll go through school without working if the experiment goes well and i'm able to do this without any kind of debt and i'm able to do it without becoming irresponsible due to working which is his fear if i understood you right then then dad then then maybe the experiment turned out, and maybe we can extend that. Why don't we try this?

But I need your help to make sure this is being done the way you want it done, Dad. That's different than you rebelling and saying, you know, in a sense, using the attitude, the old man has no clue, so you're going to do whatever you want to do. I would never endorse you doing that. No um and it wouldn't work biggest role model yeah yeah and it wouldn't work robert what was your goal in working part-time what would you do with that money well to give you some background um i followed up with mr ramsey since i was 17 i i remember coming home to my mom because my mom has a better credit score than my dad does and begging her to let me piggyback off her credit card as a 17-year-old.

And because of that, now I have a 750 credit score with my own credit card. Well, you didn't get that from us. Oh, no. Because of you, I decided to take a bunch of financial classes in my high school. Oh, okay. Okay. Yeah. So what are you going to do with this money? Invest it.

I just want to, you know, it's to the point where in order to get any type of income, I've been having to do side hustles behind my dad's back. I do computer repairs for my friends. I do digital repairs. I do IT work across the Internet on Twitter. Even one of my friends has contacted me to open up an e-commerce business with him. I have been trying to get any sort of income under the table. I already have my emergency fund set up, $2,000.

And then in flat cash, I have around $300, and I've been investing like $1 a day just for the past year into the Vanguard S&P 500, just a dollar a day. So, Dad, you risked your life for our family to have an opportunity to start in the land of the free. And part of the free is free enterprise, and part of the free is the ability to go into the marketplace and earn. And I want you to walk beside me and show me how you think I ought to do that in a way that's responsible. That's a lot better than under the table, hiding and deceiving your father. You don't want to do that. That's not going to turn out well for you. So good question, sir.

Good question. Honored to have you in our listening audience. We appreciate you being there. Jana is with us in Athens, Georgia. Jana, right quick for a run out of time. What's up? Hey, real quick. I'm curious on how you started on with my budget when I have so much looming debt over us. I'm really been laser focused. I'm trying to get our financial situation fixed since before the holidays. And when I try to look at the budget and I'm thinking about the four walls, it's hard for me to navigate where to even begin. So can you cover the four walls right now? Food, utility, shelter, transportation? How much money do you have left after covering those?

Barely anything. what's your income and so my income between my husband and i is 82 000 a year and how much debt um so we actually not counting our house for like 115 000 in debt and that's all been accrued since we bought the house it's all house debt debt. Yeah. You're not spending $82,000 on food, shelter, clothing, transportation. You're saying after your debt payments. No, okay, well, I'm paying personal loans. Yeah, that's not. Your personal loans are not four walls. Your four walls are your basic necessities.

There's only one way out of this. You've got to make more money, sell all the crap you bought, and decrease your expenses, and use all the extra margin at the debt. Smalls to largest balance. How much do you owe on your cars? Between both of them, $14,900. They're not the problem. Okay.

I don't know what else you bought. Yeah, let's get you into the EveryDollar budgeting app. We'll pay for it. And the premium version can get you started here. There's a great paycheck planning tool in there that will help and we'll go ahead and put you in financial peace university so you guys can do this but the two of you are going to sit down together and figure out what of our lifestyle we're going to cut what we're going to do to get our income up and our out go down

and that's what george is saying and he's exactly right so hold on austin will pick up we'll get you signed up for every bit of that so the four walls are basic food and that includes no eating out electricity and water utilities does not include cable okay that's not a necessity it includes clothing although you probably don't need any you've probably got enough to wear if you're up against the wall uh shelter so you got to pay the house payment of rent. And transportation, you've got to keep the cars running so you can get to work. And that's it.

That's your four walls. Everything else is not a necessity. Everything else is a bad Monopoly game. That puts us out of the Ramsey Show in the books. We'll be back with you before you know it. In the meantime, remember, there's ultimately only one way to financial peace, and that's to walk daily with the Prince of Peace, Christ Jesus. We'll see you next time.