The Ramsey Show - App - YOLO Is Not a Plan…Have a Clear Vision for Your Future! (Hour 3)
Episode Date: January 3, 2022Debt, Career, Investing As heard on this episode: Sign Up for a FREE trial of Ramsey+ TODAY: https://bit.ly/3rZTUAx Tools to get you started: Debt Calculator: https://bit.ly/2Q64HME Insuran...ce Coverage Checkup: https://bit.ly/3sXwUn5 Complete Guide to Budgeting: https://bit.ly/3utmVXi Check out more Ramsey Network podcasts: https://bit.ly/3fHhbVE
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Live from the headquarters of Ramsey Solutions, 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.
I'm Dave Ramsey, your host, George Campbell, Ramsey personality, host of the podcast, The Fine Print on Ramsey Networks, is my co-host today.
Open phones at 888-825-5225.
As we talk about your work, your relationships, your money, and you right here on The Ramsey Show.
Riley starts off this hour in Sioux Falls, South Dakota.
Hi, Riley, how are you?
Hey, Dave, doing well. How about you? Hey, Dave. Doing well.
How about you? Better than I deserve. How can
George and I help? Good.
Some quick background info here. I'm 26.
My wife is 24, and we have a
three-month-old baby. Yay!
I recently graduated from physical therapy
school in May and just started
working, and my wife will be finishing
up her PT school here in May, this coming working. My wife will be finishing up her PT school here this coming
May. We have a total
of $161,000
in loans, student loans, all student
loans.
We currently
have $30,000 in cash right
now, but we'll have $18,000
after we pay for her next
semester here coming up.
I'm sorry when did
she graduate this coming may 2022 okay so that's the last semester correct this is yep okay so
that no more expenses after you pay that 18 out of the 30 correct okay uh 12 12 out of 30 18 left over yeah okay yep um what do you make so my biggest uh my monthly
take home is about 56 right 5600 right now so you're making like 70 000 bucks what's she gonna
be making about the same yeah about that maybe a little less yeah so 70 grand or so okay each
each yeah so about 140,000. Okay.
Yep.
And so my question is, since I'm making payments on my loans right now, do we do my loan smallest to largest and start knocking those out?
Or do we just add them all up, hers included, since she's not making payments and just do
it all together smallest to largest?
Yeah.
I mean, this is our debt now since you're married.
So I would just pile them all
smallest to largest and start plowing through those and because you're going to start to feel
the progress and you're cash flowing the remainder of her school which is great because you're not
adding to this this pile of debt but you guys are going to have a great income coming out of this
and uh you know you take on an extra side job you slash the budget down you're going to get
rid of this stuff real fast when the last payment is made on the $161,000,
it will not have changed the date by a dime due to you starting one or the other first.
It doesn't change it.
So it just, George is right.
It doesn't, you know, she's out in six months.
You've got six more months before you have to start paying.
But, you know, and if you want to set hers aside because there's no payments on them
and just start plunking through yours first,
and then when hers activate six months after graduation, approximately a year from now,
you could add them back in at that point and start attacking them
because they're not draining anything on you right now with no payments being made, right?
Correct.
Her undergrad are federal, so it's obviously stopped with that and no interest. draining anything on you right now with no payments being made right correct uh her undergrad
are federal so it's obviously stopped with that and no interest um her and she also has private
loans for grad school which are it all ought to be on hold though because she's still in school
correct yep and it's all on hold till six months after she graduates right
correct yep regardless of covet yes sir okay so. So that's six months before she graduates and six more months approximately puts us back here at this time next year for her start.
I mean, you could go either way.
I may want to go your direction just because I like getting rid of some of the payments that you've got.
That's what I was thinking, too.
We weren't sure where to start.
It's okay to go either way.
Georgia's point of working together to knock out both of them is a big deal.
So 100% when her payments come due the first month,
you reset your debt snowball and integrate the two with each other, right?
Perfect.
Yep, that makes total sense.
Yeah, but if you're going to go ahead and knock yours out first in the meantime,
how many little ones have you got can you knock out in a year?
My lowest balance is about $10,000, so hopefully, I'm not sure, three or four.
Oh, wow.
Okay, so you're going to get after it.
Good.
Well, and she'll start work shortly after she finishes graduation and so forth.
Yeah, yeah, I'm in.
That'll give you a nice raise when she starts working.
If you can get your expenses down to nothing and you've got $11,000 take-home coming in,
you're going to knock these student loans out really fast if you guys get after it.
Make sure you're not having too much withheld, too, in the process.
So, hey, good job, man.
Good job.
Thanks for calling in.
Liz is with us in Jacksonville, Florida.
Hi, Liz.
Welcome to the Ramsey Show.
Hi, yes.
Can you hear me okay?
Sure.
What's up?
Yes.
So I'm just trying to figure out if I should change my career, and if so, I'm kind of confused about to what.
I kind of feel like I'm short on time.
Just some background.
I am 29 years old.
I'm a teacher and I'm on baby step two.
I make about 53K a year gross.
And I have three kids, age six, four, and one.
And I'm a single mom paying for both aftercare and daycare.
So there's not much wiggle room in my budget.
But I wake up every morning at 4 and go to bed around, or excuse me,
and get home around 6 p.m., so there's not a lot of time to spend with the kids,
which I feel guilty about, which is one of the reasons that I kind of want this career shift.
And I'm feeling anxious every morning going into work
just because I feel like I'm not getting enough sleep and things of that nature.
So with all that, I know that I want a career shift.
I've taken the Get Clear assessment, but I'm still kind of confused as to what I should do
and also trying to figure out, you know, how to manage the time to be able to do it.
Okay, let's be clear there's probably not a career that makes a single mom with four
with three kids six and under not have a pile of stress
your your life is stressful it's just it's the it's the stage you're in thank god it's not going to be forever
but i mean raising three littles on your own and working full-time at anything is really tough
i don't think that's going to get better until they grow up some okay i mean one-year-olds and
that kind of stuff it's just that you are you're in a really tough situation, kiddo.
So now if you've got something you can do that makes you twice as much money on half the time spent, let's talk about it.
Let's do it.
Yeah.
But, you know, if you didn't have a job and you were at home full time, you have a stressful life.
Yeah, right.
I mean, my grandbabies are this age i just
spent a week with seven of them you have a stressful job right so do you love teaching
um i feel like it's it's not my chosen like my career path long term for sure
if you could do anything you wanted to do well if you could do anything you wanted to do what would you do
that's what i'm really not sure about um i i'm really not sure i you know i listen i've been
listening for about a year now and you know i hear different people call in and talk about that thing
that really gets them to wake up in the morning something that they would do well even if they
weren't being paid for it i I mean, I love the influence.
I love the ability to teach, just not necessarily academically.
You know.
Yeah, you have a teacher's heart.
It's the setting and the life stage that's weighing you down.
Hey, hold on.
We're going to hook you up with Ken Coleman and his show and see if he can walk you through
and do a better job than we were able to do for you.
For a lot of you, last year was another year of just trying to survive.
But you don't have to live like that. You can have confidence in your
money and your future. So if you're tired of being stressed out all the time, you can decide to make
a change. You can follow a plan that works. For almost 30 years, Financial Peace University has
helped millions of people take control of their money you'll learn our proven
plan to save money pay off debt build wealth and give generously watch fpu on demand or get plugged
into a class for encouragement and support from other people you don't have to face another year
of stress and worry you can have confidence in your money f FPU is only available with a Ramsey Plus membership.
Start for free by visiting RamseySolutions.com slash FPU.
That's RamseySolutions.com slash FPU. Well, we are really excited.
Next week is the launch date for Baby Steps Millionaires,
the first book I have done in eight years.
All the other books we've done here at Ramsey have been with Ramsey personalities.
And actually, the last book I did was with my daughter, Rachel Cruz, Ramsey personality and smart money, smart kids.
It was a number one.
Thank you.
And this first major trade book I've done.
I mean, we've done some of the odds and ends things, but I mean, major trade book.
This is the first time we've done this.
And so, hey, I'd love to have you guys pick up a copy of Baby Steps Millionaires,
How Ordinary People Built Extraordinary Wealth and How You Can Too.
This is the proof that's in the pudding, baby.
I mean, this is how it works.
And we can prove to you that you can become a millionaire in america today it's not it's not
false it's not saying you can't fix it's not saying there's not problems out there it's saying
you can overcome them and you can work your way through these things it is very very very possible
for you to pull this off we've got the data to show you we've got the stories to tell you
we've got 30 years of experience of
leading people and showing them to become baby steps millionaires and uh it'll prove it to your
brother-in-law who thinks that uh wealth inequality requires socialism because it doesn't and so this
is my little private war on socialism uh so you know you you need to know that you're not going to convince left-winger dingers that
things are different than they are but uh than they think they are but that's okay i mean just
those convinced against their will are of the same opinion still you still love them
and uh you still take care of them and uh you just like in the south we say bless your heart right
move on so baby steps millionaires how ordinary people built extraordinary wealth how you can too it's a 28 book or whatever books are costing these days we got it on sale
pre-sale for just a few more days for 20 if you pre-order the book between now and the time we
launch it next tuesday you're going to get $100 worth of bonus items. Includes the Baby Steps Millionaires audiobook, read by me, and e-book.
The Legacy Journey audiobook and e-book.
The Baby Steps Millionaires live stream, which is going to be George and Rachel and I, is Thursday.
It's free.
You can get that if you don't get the book, by the way.
And the Ramsey Smart Tax filing for your federal taxes and a 30-day
free trial of ramsey plus which is rent which gets you into financial peace university all of that
for 20 bucks for baby steps millionaires be sure and check it out 888-825-5225 if you want to talk
we're here to help richard is with us in Los Angeles. Hi, Richard.
Welcome to the Ramsey Show.
Hello, Dave.
Hello, George.
Thank you for taking my call.
Sure.
What's up?
I'd just like to talk to you a little bit.
Side note is I just hooked up recently with a SmartVestor Pro after listening to your show for a couple of months.
Cool.
And we finally locked in our agreement to work together, but right before the holiday.
So now these last two weeks, I've been spinning like a top after my wife and I finally paid
off a bunch of debt over quite a few years.
And now I just have some questions before I get back together with the SmartVestor Pro in a week or two.
Cool.
And I just couldn't hold myself back from dialing in and firing a couple of questions.
Well, we're honored.
We're honored.
What's up?
You're the best.
Okay, so I think we're around 3B-ish right now, so to speak.
The consumer debt, personal debt, IRS, all the debts are paid off, and that was a lot of money.
We have six months emergency fund locked in.
We have our 401K going, and we have a little Schwab account as well.
My question is, I received this 4% match at work, right? And I believe I'm
not supposed to be contributing anymore if I'm following your program, right? And I just wanted
to know about that. And also, I don't know if we're 3B-ish because we still have, I have, I took a loan, we took a loan off the 401k to pay off a personal thing that was on our hearts.
They didn't want us to pay it back.
They said we don't have to pay it back, blah, blah, blah.
But according to our hearts and our integrity, we took the loan, paid it back.
I paid about 25, we paid about 25 grand so far got
about another 25 left a little over 20 left you have a 401k loan of 25 000 yeah left that's been
uh how much is in your schwab account the schwab is a little,000. Write a check and pay off the 401k loan.
Just get that out of the way, yes?
Yeah.
401k loan is your own money.
Right.
You borrowed your own money.
So, yes, you need to pay it back.
Yeah, it's part of your Baby Step 2, actually.
So, yeah, you need to knock that out.
Now we have a $5,000 Schwab account, and now we're at Baby Step 3B.
Yes.
So, Richard, we don't tell people they have to stop 401k contributions in 3B. That's when you're paying off your consumer debt in step two. Now, 3B looks different for a lot of people. You
are in the Los Angeles area. If this is going to take you seven years to save up a down payment,
I don't want you to miss out on investing. So it may be a mix where you invest up to the match
or you invest the 15%, whatever money's left over, you throw towards the down payment.
So you can move forward with the four through six while saving a down payment.
3B is for when people want to get intense and they can do it in under two years,
they can save that down payment, they can pause investing for a short period of time
so that they can get into that house. What does that timeframe look like for you?
Here's the punchline. The timeframe is fine. I could have the down payment weekend within about a year, maybe 14, 16 months. We'll see. But the punchline is this. I'm 57 and my like that, but we were blessed to be married seven years ago the right way in God's grace,
and we want to continue to do the right thing and be responsible here.
So what do you think about that?
Nothing is irresponsible in our discussion here.
Okay, so let's revisit what George is saying because he's got this exactly right.
You're being very wise and you're being very careful, Richard.
Way to go.
I'm proud of you.
So what I would tell you to do is, number one, let's today write the check out of the Schwab account and pay the 401k loan off.
Now you are officially at Baby Step 3, have finished Baby Step 3.
You've got your emergency fund in place.
Now we start with the down payment.
Now Baby Step 3B can, as George said, mean a lot of different things to a lot of people. baby step three you've got your emergency fund in place now we start with the down payment now
baby step 3b can as george said mean a lot of different things to a lot of people sometimes
at baby step 3b people don't start baby step 4 at all they don't start their retirement
restart their retirement until they save their house down payment so zero going to retirement sometimes
they put a little into retirement and a bunch into their down payment sometimes people go ahead and
start 15 on their 401k and then just save their down payment above that which would take you a little longer obviously okay another question do you think i should keep
uh enough of the four percent match we have 270 in the 401k and either one's okay
there's not there's not a dumb answer here okay because you're going to have a down payment saved
in a year if you do nothing towards retirement and you're going to have a down payment saved in a year if you do nothing towards
retirement and you're going to get retirement going full blast after that understood so you're
not you're going to be okay or if you really want that match mathematically because it scratches
your itch i'm kind of like you on that i kind of hear that in your voice it's kind of a math nerd
thing for you you hate to walk away from that free money. That just means that's a little bit less you're going to have to save towards your down payment.
It might take you a month or two longer to save your down payment, right?
Mm-hmm, yes.
And it might take you six or eight months longer if you put the whole 15% in.
None of those are wrong answers.
Each of those are just personal preference, your choice in our plan.
All of it's ultimately up to you.
You're adults.
You get to do whatever you want to do with your money.
But to clarify, that's what 3B is a little bit, you make up your own crap there inside the plan.
And then we just ask that you don't save for a house for like seven years and not do retirement like George said.
Especially at his age.
Yeah, exactly.
Especially there.
That would be a bad idea. Thank you. In the lobby of Ramsey Solutions on the debt-free stage, Jake and Jill are with us.
Hey, guys.
How are you?
Good.
We're doing good.
Welcome.
Where do you guys live?
Hastings, Minnesota.
Which is near? Twin Cities. Oh, Minneapolis. Okay. Minneapolis, St. Paul? Good. Doing good. Welcome. Where do you guys live? Hastings, Minnesota. Which is near?
Twin Cities.
Oh, Minneapolis.
Okay.
Minneapolis, St. Paul.
Good.
Cool.
Welcome to Nashville.
Thank you.
And how much debt have you guys paid off?
$404,812.
Woo!
How long did this take?
56 months.
Wow.
And your range of income during that time?
It was about $125,000 to $215,000. Nice jump. Nice jump. What do you guys do for a living? 56 months wow and your range of income during that time is about 125 to 215 nice jump nice
jump what do you guys do for a living uh we run a lawn irrigation company whoa so business got
good huh yeah real good you've been growing it fast over the last five years trying to yeah well
done good for you guys very cool what kind of debt was your four hundred and five thousand dollars
well we had a
whole bunch a lot of credit cards we basically ran our business off of credit cards we had a home
equity line of credit we had some equipment like a tractor and a skid loader we had a personal loan
and we paid off our house oh like the last part a lot yeah so what is how much of the mortgage how much
mortgage was how much of the 405 000 was the house mortgage it was probably about 260 of it probably
oh okay so almost almost three quarters of it yeah wow okay and then just the rest of his business
stuff yeah pretty much you just put the business on credit cards and business on loans, and you cleaned all of it up. Business is debt-free.
House is debt-free.
We are debt-free.
You got it.
I love it.
Very cool.
It's good.
Very cool.
I love it, guys.
I'm very impressed.
So what put you guys on this journey 56 months ago?
Tell me the story.
Well, we had gone on a vacation, like a family vacation um you know paradise we were gone to get
home and it was like oh my gosh if money doesn't come in i don't know how i'm gonna make the next
payment and so it just was a huge reality check and i um i had we had heard about you guys at a
church that we had attended in the past and so i just dug it all back out and looked into it and i read the book
and i started listening to all the podcasts non-stop and just basically told them this is
what we're going to do and i started listening happy wife happy life you know what i mean
you just went along with it oh yeah exactly tried the exactly. Tried the best I could, you know.
So, Jake, at what point did you catch up to all what she was doing and say, all right, I understand and I'm part of it? Well, you know, it took a little bit of time, but I seen the results as we just started picking away at things.
And it just, you could see life was getting better and better and better.
Well, I saw your uh obviously the
income from your business went way up during this period of time too uh what happens to a lot of
people i see it with entree leadership people all the time is that uh as you get control of the
money and you see the actual measurable progress it does it with me too it motivated me to work even more oh yeah
because i felt like i wasn't spinning my wheels for nothing oh yeah no pun intended with you
driving a skid loader and a mowers and everything else but yeah but i i felt like i was getting
traction it became a game like yeah i'll work some more let's get it done i'll work some more
let's get it done right you got a goal to hit and you're measuring it you just get after it
yeah is that part of why your income went up?
Oh, yeah.
And, you know, every time you got a debt paid for, I mean, you're that much closer to the driver's seat, you know.
And it's like now nobody can control what we got going on anymore.
We're in control.
But I started reading a lot of different kinds of books that, you know, how to run a business.
I didn't go to school for that.
You know, I married into that.
And then when we started having kids, it was just just it wasn't gonna work for me to work outside the
home so he bought his business partner out this was years ago and you know that was how we were
gonna do it and i i just i dove in you're doing all the back office yeah yeah you got it and uh
and that's that the stress with that and kids and house bills.
Oh, my God.
Yes, exactly.
If he buys another skid loader, you're going to kill him.
Exactly.
Crazy husband, you know.
All right.
So next time you need to buy equipment, because you will.
Yeah, straight up cash.
That's it.
That's it.
Very good.
Yeah.
I'm curious.
What made you guys go, not only are we going to clean up all this business debt, the credit
cards, but we're going to pay off the house too that's another level i knew for me
it wasn't going to feel done until it was all done you know like he said raising a family
is stressful enough so you know if that's the one thing i could have taken off like i don't
have to worry about that anymore there's enough to worry about all of that you know all of that so you brought
the kiddos all of that how many how many kiddos you got we have six all right bring them up let's
hear their names and ages okay so the oldest is lydia this is lydia she's 17 emily is 15
donnie is 14 mally's's 13. Hank is 7.
And Tom is 6.
Okay.
So how many of these guys drive in mowers?
As many as it can get.
But they can reach the pedals, right? That's right.
That's right.
I like it.
That's good.
It's good for them.
Absolutely.
These guys will turn out, man.
They know how to run a business.
They know how to work.
And their mom knows how to run a checkbook, man.
I'm telling you, that's pretty impressive.
Very well done, you guys.
All right.
What do you guys tell people the key to getting out of debt is?
Well, you got to work together, you know, and you got to have the same plan.
Yeah.
For me, it was I kept – I would have to dream.
You know, it was like I could picture what that was going to feel like. I knew it was i kept i would have to dream you know it was like i could picture what that was going
to feel like i knew i knew it was going to happen but you know when i going through this you know
all this ramsey stuff is what made me realize like there is hope i didn't have hope i didn't
know how to do any of it so but then i started watching the debt-free screams and it's like
oh we can do this like this is it's gonna happen yeah yeah you guys are
impressive thank you very cool you found a way you found a way you weren't waiting on somebody
else to fix it you scratch and claw your way through it yeah there's always a book somebody's
always got a book i mean books have saved my life man they've taught me everything so i'm gonna give
you a copy entree leadership too have you read that one yet okay all right well you don't need
to give you one we got a copy of baby steps millionaires for you it comes out next week but
we got a pre pre-launch copy for you guys to say uh congratulations because you're going to be baby
steps millionaires if you're not already what's the house worth about 375 okay you may be there
already how much you got in investments? Probably about $300.
Okay.
You're almost there.
Yeah.
Well, we count the business assets, too.
You are there.
Yeah.
Yeah.
All right.
Congratulations.
Thank you. Baby Step Millionaires, too.
Right in the process.
It's not that unusual.
We hear the house pay off for them to make that same time.
That's not unusual for both those things to happen around the same time.
Good stuff, guys.
Way to go.
Also, a copy of Total Money Makeover.
You can give it away to some friends, stir up their life.
It's a good thing to do.
So you guys are a very, very impressive couple.
Hard working and diligent, scratch and claw, get her done, hustle and grind.
Good people.
Thank you.
Thank you so much.
We're honored.
You guys are why we do this.
Very, very good stuff.
All right.
It's Jake and Jill, Lydia, Emily, Donnie, Mally, Hank and Tom.
Hope I got all that right in the St. Paul, Minnesota or St. Paul, Minneapolis area in Minnesota.
Four hundred and five thousand paid off house and everything.
These are weird people.
They did it, man.
Fifty six months making one twenty five all the way to $215,000.
Count it down.
Let's hear a debt-free scream.
Three, two, one.
We're debt-free!
Yeah!
Woo-hoo!
I love it.
There's so many of them, I couldn't tell who screamed.
It was just amazing. Well, I't tell who screamed. It's amazing.
Well, I'll tell you what.
One thing about a large family, you do learn to work together.
There's no other option.
We've got friends, we've got folks on our staff here that have 6, 8, 10 kids,
that kind of thing, and you're going to do that.
You've got to learn to work together.
So it was easy for them to apply these ideas of, okay, what do we got to do?
Let's all get together, huddle updle up boom let's get it done teamwork and it
makes all the difference in the world and when you're running a small business and you don't
have any debt nothing on your home nothing on your equipment nothing on anything and next time
you get ready to buy equipment a key answer you're gonna pay cash for it baby that's uh it's gonna
set them up to be unbelievably wealthy.
Their business is
going to take off now.
Well, it's already
taken off.
But yeah, now it's
all theirs.
I mean, the money's
all theirs now.
You get to bring it
home and it's like,
mine, now what do I do?
You handle clients
differently when there's
no debt in the picture.
Yeah, you don't put up
with the crazy ones.
No, you don't need to.
Yeah, you fire those.
And there's a few of
them that need firing.
I'll just tell you.
That's for sure.
I might do that this week.
This is the ramsey show Thank you. our scripture of the day psalm 65 11 you crown the year with your bounty and your carts overflow
with abundance.
Thomas Edison said, if we did all the things we are capable of,
we would literally astound ourselves.
That should be our goal for 2022.
Astound ourselves. To astound ourselves.
I like that.
If we could just astound Kelly.
That is not going to happen.
But maybe we could astound ourselves.
That would be okay.
Astound. That's a great word. Yeah But maybe we could astound ourselves. That would be okay. Astound.
That's a great word.
Yeah.
I want to astound myself.
Nick is with us in Dallas, Texas.
Hi, Nick.
Welcome to the Ramsey Show.
Hi, Dave.
Hey.
Yeah.
If only we could be astounding.
So I think I already know the answer to this.
I've read all your books, and I've watched the podcast and all the things,
and I think that that last call that the family that was just on there was really awesome.
Honestly, that's probably all I really needed because I think I know where this call is going to go.
So here's the situation.
I'm a new travel nurse.
I moved all the way to Dallas, Texas from
Richmond, and I ended up getting into a wreck. I got this 2000 Toyota 4Runner, and it's been my
baby. It's made it to 250,000 miles, and it's pretty much time to say goodbye. I got it appraised at $8,000 on the first appraisal,
and then the second was $2,500, but that guy hasn't called me back,
and he's kind of from a sketchy area.
So I think what I'm looking at here is getting a beater,
but I'm a little nervous because if I did,
I don't know if it would be so safe on the highways when I go to my next place.
And my friend, he used to be a car salesman, and he's been trying to tell me that it might just make more sense to go ahead and get a car loan and get something new because of the inflation.
Wait a minute, a car salesman told you this?
This is a credible
piece of information yeah okay wait a minute dude have you gained money
all right we've we've been best friends literally since middle school i mean um he's not trying to
no not him he's out of the picture he's already discredited himself he doesn't even work he's not trying to no not him he's out of the picture he's already discredited himself
he doesn't even work he's not he no longer gets a vote because his opinion is dumb
now let's move on do you have any money no man i mean no money at all okay you don't have any
money in savings at all i've got four hundred dollars okay i've got the400. Okay. I've got... The car, did you total the 4Runner?
Oh, man.
It's running.
Did you have insurance?
I've got liability.
Oh, you didn't have collision.
Okay, so you just lost your car.
And it's going to sell broken for eight grand?
Broken?
I mean, so 8K was to fix it.
Oh, fix it.
Oh, you're saying you get quotes.
Okay, got it.
You don't have eight grand, though.
No, definitely not.
And you don't have insurance to fix it.
So, yeah, before you spend eight grand to fix this piece of crap, you'd spend eight grand to buy a car.
But in either case, you don't have eight grand.
So let's start again. You have four hundred dollars to your name i've got a credit
card man but yeah i know how you feel about where's your money going you said you're a travel
nurse that's good money yeah so the way i mean it sounds real real great you know but there's
honestly there's a period where you've you've got to make ends meet before your first, like your first pain, like you get money from, from the, uh,
agency. So, um, anyway, I've, I've made two, I've gotten two paychecks so far. And, um, after
paying back all the travel expenses and, and, um, the and the credit card I ended up getting.
Is the car paid off now?
Do you have a zero balance on it?
Uh-huh.
Yep.
And it will sell in its current condition for how much?
$800 was what CarMax told me.
So you got $1,000 to your name.
When do you get your next check? Yes name when do you get your next check yes when do you get your next check uh this is coming friday how much will it be 2800 okay um
all right i can only tell you what i would do in your situation you painted yourself into a really
difficult corner because you've saved absolutely no money
and you didn't carry collision insurance, which you should have been doing both of those things.
Okay?
So today we're going to start listening to Dave and George and start doing this stuff.
So your next goal is to get $1,000 in the bank after we get you a car.
Okay?
But if I woke up in your shoes, your back is against the wall i'd sell the car
for 800 i'd take a thousand of my 1200 i'd take a thousand out of the check that's coming friday
and i'd buy a two thousand dollar car i would drive that for two to three months meanwhile i'm
going to save like a crazy man and buy an $8,000 car.
And I want you to work like a freaking maniac, like every hour they will give you.
And I want you to quit partying.
I lived it up a little bit on the way here.
There it is.
That's what I was waiting for, a little bit of honesty out of nick yeah dave's exactly right uh the whole idea that if you buy a beater car it's
going to explode on the interstate that's just a load of baloney and it's justification my car i'm
driving right now cost me six thousand dollars and i've been driving it for almost five years
and it's a beater but it runs it's a's a Honda. So go get you a cheap car. Has it ever left you out?
No.
Never left you stranded?
Never.
Not one time?
So look for a good used car that's reasonable right now, and that's not going to be sweet for two grand.
But you can upgrade.
$2,000.
It's ugly, but reliable.
I want it as ugly as possible. Here's the thing, Nick.
Your situation is you're painted in this corner because you're living for the moment.
Your entire whole calendar and your checkbook is YOLO.
It's every bit.
Thank God it's Friday.
Oh, God, it's Monday.
And I want you to flip that and start having a vision for your life a decade from now,
the kind of man you want to be, the kind of place you want to be,
how you want to be living, and the amount of wealth you want to build.
Because if you keep living like you're living, you're going to keep having the same problems
you got.
I noticed that when I was completely broke that my life looked like a country song.
Everything that can't go wrong will.
Keep the dog out of the street, it'll get hit.
Oh my God, everything that can't go wrong will, right?
And that's what's happening to you.
And it's because you've lived down to the nub
on everything i mean you you've left yourself no margin in your schedule and um you're living for
the moment and i it's nothing i'm not shaming you i'm just telling you how to fix this young man
and so uh throw your shoulders back and let's say i need a five-year, a 10-year vision for my life.
And what are the steps for me to get there?
And you can have enjoyment along that journey as well.
But in seeking enjoyment all the time, all you found is stress.
Yeah.
I mean, there's a lot of that yellow mentality happening here. And like Dave said, if you get that vision, I mean, sign up for our Building Wealth live stream and start to picture what would it be like five years from now, 10 years from now, fully funded emergency fund. Maybe I'm starting a family. I've got money in the bank. I'm hitting my goals. And I use this moment as a never again moment where you said never again. Am I going to not have the right insurance, have $400 to my name, and have nothing to show for my hard work? Nick, we had a lady that when COVID hit, she moved to travel nursing, and she had
$350,000 of student loan debt. In 12 months, she made $500,000 as a travel nurse, working 80 hours
a week, every COVID thing she could get on. And yeah, there's some risk to that. I am not a medical
professional. i'm just
admiring that she had a vision for her life and went from deep in a hole and a mess to five hundred
thousand dollars 12 months later now she quit after that and went back and you can't do that
forever you should burn the candle at both ends but for 12 months she laid on the line because
she had a vision for her life and said, I'm never going to be in this situation again.
And so maybe this car wreck wakes you up, and maybe this is your time that you say never again.
Or maybe you keep living like you've been living, and you're going to keep getting what you've been getting, my brother.
It's a reaping and sowing thing.
When you plant corn, don't be shocked.
Corn grows.
That's how this life works. You're a good man, Nick. Thank you plant corn, don't be shocked. Corn grows.
That's how this life works.
You're a good man, Nick.
Thank you for calling in.
We're honored to talk to you.
We appreciate you joining us in our audience.
That puts this hour 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.
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