The Ramsey Show - App - You CAN Change Your Family Tree and Build Wealth! (Hour 1)

Episode Date: November 15, 2021

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Thank you. Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental 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. Welcome to the Ramsey Show. George Campbell Ramsey personality is my co-host today as we answer your questions about your life and your money. Open phones here at 888-825-5225. That's 888-825-5225.

Among George's many jobs in this locale called Ramsey Solutions, he is the host of the newly popular big hit, the Fine Print podcast, where he explores the fine print that is screwing you over in various industries. And, George, is it the new one that just dropped? I picked it up on my walk this weekend on Christmas. Holiday spending. Holiday spending. Is that brand new?

Is that the newest one? OK, look at that. Look at me. I'm caught up. It's so great. Thanks for listening, by the way. Sure. I'm trying to trying to boost the listenership here.

But the it that's really that was really intriguing and really good. You guys did a great job with that. Thank you. I hadn't seen the outline of the wireframes on it or anything, and so I was just having the full user experience as if I was a consumer instead of the owner of the place. And it's really insightful. I mean, with all this disruption with supply chain, inflation, cray-cray out there, I mean, you know, crack-a-doodle, man.

The whole culture's lost its dadgum mind. And then let's have Christmas, right? Well, we started it going, okay, let's do one on Black Friday and what you need to know to not overspend during the holidays. And all of a sudden, this global supply chain disaster hit, and we're going, oh, my gosh, there's more to this story. And on top of that, you've got all of the baggage that comes with the holidays when it comes to family and expectations and boundaries and so we had dr john deloney come on there to talk about not only how to curb overspending but how to deal with family and how to say no and how to set up healthy boundaries that are respectful to family and you get a lump of coal and you get a lump of coal and you too that adds to the stress of the holidays yeah so, I mean, I couldn't, I hadn't really half paid attention because my need for stuff is fairly low.

But $28 billion worth of goods sitting in L.A. Harbor, Long Beach Harbor, alone on 73 ships or something? You nailed it. I mean, that's real good. I'm very impressed with you. I was pretty close to that. Your memory there. I was pretty close to that because I was just like, that's a lot of money floating out there, and they can't get it off. That was when we shot it.

When we did the recording. They may have gotten some of them offloaded now, but it's still just. And then it might be a little backup with the old truck drivers after that. Oh, my goodness. Basically, everything is bottlenecked, and it's making everything expensive. It's hard to get, which means you've got to plan early. You've got to budget better. You need to budget more.

And that, with all the expectations with family, that can turn into a disaster, and you have a lot of regret come January. We pulled a ton of our stuff out of overseas production, Ramsey products and things. We've got a few things that come, but we used to regularly buy those cartons and you know a whole carton full back in the day financial peace university kits back when they we had kits you know we'd have a whole carton coming on a slow boat from china thing coming over and uh it was like very inexpensive and it went it's like twenty two,000 a carton now. In September, it was $10,000 a carton. And in June, it was $3,000 a carton?

It has quadrupled, I think. No, more than that. More than quadrupled? It was nuts. I couldn't. Wow. Yeah, that'll add to the cost of the goods inside the carton. Hello.

Yeah. Because these businesses are not eating this stuff. You people are. Consumer gets the old barbie is afloat on the seas old barbie's cost just went up her value just went through the roof that's amazing is our american girl dog the doll maybe dogs are they made in america i don't know i don't know but it's it's getting wild out there we're seeing golden sacks backwards if they weren't, but they might not be. So getting into port is three times slower, and it's astronomically more expensive. Yeah.

So it's causing all sorts of issues. And so, I mean, Santa Claus has got his work cut out for him. The old boy's going to have to get a lot of that magic dust out. There's a shortage of batteries, TVs, gaming consoles, laptops, cell phones, cordless vacuums. I mean, pretty much everything you could want this Christmas. That was a pretty good joke line, too. If you can't get a cordless vacuum, you just can't get a vacuum. You can't get one.

Who's getting corded vacuums in 2021? I'm not getting a vacuum. Not on purpose. So I wouldn't know. But I was going to have Rachel come over and do it, but it might be a long wait. I'd be hard-pressed to make that ask. You're thinking that's probably not the one of my children to have do that? No, no.

She's got her own problems. So bottom line is, what do they do for Christmas? Now, they need to listen to the Fine Print Podcast. Absolutely. But to get ready for Christmas this year is going to be particularly strenuous. The big takeaway here is you've got to shop early. You've got to be looking for the deals because there's not many of them out there to find because the retailers aren't that desperate and there's not that much to get rid of. And so you're going to have to really do your research and really ratchet down that every dollar budget

when it comes to holiday spending and get it done as early as possible. And I heard something else in there that I liked even better. Anytime you're buying anything and you get married to a particular thingy you are about to get messed over in the negotiation you need lots of options yes and so an a b a c even a d a fallback option uh default option in case a and b are not available and c is triple what it should be because of these shortages and no other apparent reason then uh you need to be you know listen the way you survive crazy is you don't join crazy right you got to have options well we we joked about it being like that movie jingle all the way with arnold schwarzenegger and sinbad when they're fighting over the the final toy and that's what it's going to be like this holiday season when you want the certain model and you need that specific item and it's hard to find and it's already stressful going to the mall.

I'm not sure how that movie didn't end up a Christmas classic. It is to me, in my heart. In your heart? Yeah. Okay, you're the right age group. Which we found out, this is the most fascinating part in the whole podcast, the research showed that there are over 200 Hallmark Christmas movies as of this season. Well, and none of them made the Sinbad level.

No. Funniest Sinbad line ever has nothing to do with Christmas. My dad used to put me in timeout. He'd take time out of his day to whip my butt. Oh, that's good. Great Sinbad line. That one held up. Great.

That one stuck with me. Oh, timeout. I love that. So christmas you need a plan you need alternates you need to shop early and often you take your time and slow down if you think you're going to stroll in there on the 23rd or the 24th gentleman to do your classic guy shopping you're going to find nothing in there nothing out there may not even be toilet paper on the shelves at that point. And scarcity marketing.

It's a real thing. So pay attention to the marketing and what they're telling you and what's happening to your brain. Limited time, limited quantity. They jack up your brain. And it's real now. Yeah. Everything's limited. So be careful out there.

We probably have a marketing mention coming up that says something about Ramsey, something being scarce, just coming up. Right after we did that, I'm sure. That's usually the way that stuff falls. But we don't tell you something's scarce around here unless it truly is. I think we've got plenty of everything this year from Ramsey stuff, books and wallets and everything, except Christy Wright's calendar. Man, that thing, we are going to run out of those.

And we're not going to be able to get more because of the stuff we're talking about. So if you want to get one of those, you best get on it. There you go, folks. There it is. Check it out. The Fine Print Podcast. All kinds of wonderful information there every week. And this week featuring how to shop for Christmas properly.

George Campbell, my host, co-host this hour. This is the Ramsey Show. People all over the country are discovering a faith-based and budget-friendly way of meeting health care costs through Christian Health Care Ministries. Christian Health Care Ministries, or CHM, is a non-profit organization that helps members carry one another's burdens with health care expenses, and they have successfully shared each other's medical bills for nearly 40 years. See if CHM is right for you by visiting chministries.org. CHM is a proud sponsor of Dave Ramsey personality my co-host today this is the Ramsey show

common sense for your dollars and cents in a culture where common sense is so rare that having it is like having a superpower Andrew is in Atlanta hi Andrew how are you well gentlemen pleasure to speak with you you too what's up having a superpower. Andrew is in Atlanta. Hi, Andrew. How are you? Well, gentlemen, pleasure to speak with you. You too. What's up? So I have, I was just recently informed by the all-knowing government that my student loans are being transferred to Navient. And given the questionable nature of that company, I'm wondering if that changes my debt snowball. The student loans are $19,000. They're currently fourth in line in my debt snowball. And I estimate being fully debt-free in the spring of 2023. Okay. What's in front of it?

Two credit cards and a land contract, which I also wonder if the land contract carries more risk, given something you said recently. Yeah. So the land contract's almost paid out. Not much owed on it. It'll actually, yeah, it actually is probably number two. It's actually hard for me to get my head around not doing a credit card first. So what is the number?

The student loans are number four. What is number three my head around not doing a credit card first. So what is the number? The student loans are number four. What is number three? Number three would be a credit card. Yeah. What's the balance? $11,000. Okay. And what's your household income?

$110,000. Okay. All right. So the stuff after the student loan is what's dragging you out into 23, not before? Correct. Because you ought to be busting through these four making 110 fast, right, George? Yeah. Yeah, I mean, as far as Navient goes.

Yeah, I'm making some changes. Yeah. Navient sucks, but they all do. Yeah, I don't think you have any worries there. I wouldn't adjust the snowball because of that. No. Especially with your income. I'd get these credit cards i

guess i was just concerned about you know from borrowed future and they're they're all they're all bad that's wrong they said navion is just one we featured in borrowed future but they all suck and you know what it'll probably be transferred again before you pay them off and so that's just the nature of that industry so i wouldn't be worried about them screwing you over i mean it doesn't whoever it's sitting with in the student loan world is they're not as much crooked as they are just incompetent which is actually worse because crooked you can actually catch incompetence you can't fix and so you just have to manage you have to watch your account and make sure they're posting stuff the way they're supposed to all the time anyway, whoever it is.

So just watch it like a hawk and keep it right. There's what I would do. Yeah, I don't see any need to move it around in the debt snowball. I think you just stay the course and use this income to your advantage and maybe try to increase it if you can to speed this thing up because we're talking. You're done with the student loan, though, in what, six months? Yeah, I'm probably done with it and um by the end of 22 i've got a whole spreadsheet that tracks yeah i think that's a little late i think you need to

turn your snowball up a little bit because not 30 000 is the last two i don't know what the first two are but making 110 you need to get there i mean yeah you need to get there inside of six months yeah i don't want to keep these things around like a pet but but that that's a that's a different subject but no i wouldn't move it don't want to keep these things around like a pet. But that's a different subject. But, no, I wouldn't move it, to answer your question. I would watch them like a hawk. But any of you that have a student loan, you need to watch them all like a hawk because they just can't find their butt with both hands.

I mean, they really are incompetent. They're just not. I mean, and don't care. And they don't care. They just do whatever. I mean, they just lie. Yeah, with every payment, I'm going to be checking the website, making sure they took out exactly what needed to be taken out and no more,

and watching that thing. They're constantly auditing your own account. Yeah, that's what you've got to do with these people. The Navient people are just, it's just a, whew. Michael's in Houston, Texas. Hey, Michael, how are you? I'm doing just fine. Thanks so much for taking my call, guys. Sure, what's up? I'm doing just fine. Thanks so much for taking my call, guys. Sure.

What's up? I got two things for you. Number one, I wanted to at least provide a testimonial for some of the advice that you're giving on here. My wife turned me on to your show about four years ago. And in four years, we are completely debt-free. We've paid our house off. Wow. We're 36.

Thank you. And our net worth now is about $1.2 million. Way to go, Baby Steps Millionaire. I'm proud of you. Thank you. Thank you. It took a lot of work. It took a lot of sacrifices. But yeah, we are completely in the green. Touchdown, man. Way to go, hero. Thank you. Thank you. So what this kind of leads me to, it's kind of a two-part question. Number one, as far as our retirement goes, we have about $730,000 at this point with an investment company. And that's already been invested.

And our next goal is that we're still living in the house that we bought together. together was our first house. And we're just starting to feel a little bit cramped. So we're looking for an upgrade. So while I'm saving up enough money for the house, and let's say that I need to save up about another $150,000 to $200,000, my question for you is this, should I feel as I'm saving up that much money, because it's a lot, should I feel the pressure to continue putting that towards my $730,000 in retirement? And then the other question is that if this is going to take me about two to three years, I'm a little bit unsure in how to invest it. And I know that you can't call the stock market.

I know that you can't time it. But my biggest fear is that I invested in something, and then two to three years from now, I have less than what I put into it. So the $750,000 is in retirement accounts, right? Yes. Like if you take it out, you get a penalty, right? Yes. So you can't put it in that if you want to use it to buy a house.

No, no. The idea was that I wanted to take that money and start to invest it somewhere else, as in open up like a secondary. So are you saying you're going to stop contributing to that retirement account to save up for this house? That was kind of my question, is that while I'm saving up for the house, should I continue to still be putting money in my retirement account? Or do I have your blessing to say you're in a really good place right now um you should put it towards the house you're a millionaire you don't need our blessing for anything but but we

would tell you as a matter of course just to continue to put 15 aside and above that save for your upgrade that shouldn't make or break your upgrade to lose out on that 15 exactly you're investing so i would yeah on anything above that 15 i would be putting away and if it's two to three years that i don't i wouldn't be putting it in mutual funds that's a little bit short of a time horizon um but when we saved up for our house if it's three to five years we worked with smart investor pro we invested that and it grew it grew a little bit which really helped us with our down payment situation so one to three to five years one to three years is a little bit tricky on the market

so here's the here's the here's your probability so you can split it up do some of each if you want uh in terms of uh whether you put it in money market or whether you put it in mutual funds if you leave a mutual fund a general market mutual fund good growth stock mutual funds across the four types we talk about alone for fivesix percent of the time it will make money. If you leave it alone three years, 67 percent of the time it will make money. One out of three times it will lose money. Okay. But it won't lose a lot.

I mean, it might lose, you know, you might put in $100,000, it might be worth $95,000, you know, or something. So it's not like you're gonna lose all your house money but you probably won't you won't make any money that's appreciable and so that's why i said you might play the market on some of it and some of it you might not play the market but even by playing the market in air quotes i'm gonna be in some very conservative mutual funds and money markets or i'm gonna be all in money markets if i just don't want to worry about it at all but if i really want to take a little bit of risk you might lose a few thousand dollars if you're only leaving it alone three years yeah and with a high yield savings account i mean you're looking at a half percent so it's not the sexiest thing but it is guaranteed and so you have that

um as far versus losing money in the market in a short period of time exactly and the way i look at is you know a typical mutual, year in and year out, averages 10% to 12%, okay, a decent track record mutual fund. And so it's got to do really sucky to get all the way down to a half a percent. Yeah. And so I personally am willing to play that, but I don't want you to lose a little bit of money and then go, oh, I lost all my house money. You didn't lose all your house money.

Instead of having $100,000, you got $95,000. But you might have had $120,000, too. That's the other side. That's your spread of risk. It's not all or nothing. This is not a roulette wheel. So you're not playing Bitcoin. You're not playing Beanie Babies.

And you're not playing gold here. This is a low-risk scenario. So your range of risk is really small really small so either way you go but if you're going to get down under three years i start to get nervous and i just start to park it in money markets uh if i'm in your situation that's what i would do so good question thank you for joining us this is the ramsey show We'll be right back. In the lobby of Ramsey Solutions on the debt-free stage, Jim and Jenna are with us. Hey, guys, how are you? Hey, howdy, howdy. Awesome.

Welcome, welcome. I love your tie-dyed Be Weird t-shirts. Best t-shirts of the week. That's impressive. Very colorful. I needed some color here. We're ready to go, man. See, I was born in the 70s so i was born in the 60s but yeah but oh my gosh still oh that's incredible so uh where do you guys live uh we live in

perrysburg ohio just outside of toledo wonderful part of the state well welcome to nashville and how much debt have you paid off 731 00031,000. That is sufficiently weird. And how long did this take? A little over nine years. All right. And your range of income? We started at $125,000. It went up and down in between there, even a year of unemployment for me. And we ended at just short of $130,000. So not much changed between the start and end cool what do y'all do for a living so um i work at bowling green state university go falcons um jim and i met there i'm in the college of education there and our oldest two also attend there so um i gotta love that tuition waiver uh there so um i work in stem education um some, and also work with teachers in our area. Wow.

Home of my hometown of my good friend Scott Hamilton. Yes. Oh, yes. Yep, yep. And a famous runner from the 70s. You know what his name was? Dave Waddell. Oh, yes.

Oh, okay. Yeah, yeah. I went to ice hockey camp there when I was 12. Nice. On that sheet of ice. No kidding. I doubt it's still there. It's probably melted down, literally. But, wow. Same i bet it is i bet it is wow very cool yeah southern boy

goes to the north and get my butt kicked by those northern boys playing hockey but that's what happened but very very cool learned a lot learned a lot well welcome guys okay i'm guessing i'm gonna surmise nine years 731 000 and be Weird T-shirts means you're paid off your house. We have paid off our house. That is correct. You are officially weird. We are done. We are done.

Bunch of weirdos. I love it. Congratulations. Thank you. Thank you. Thank you. What's the house worth? $250,000.

Way to go, guys. Very cool. Yeah. Well, tell us about your Ramsey journey that started nine years ago. What happened? Well, the journey started a lot longer than that, I would say. Shortly after we were married, I was introduced by my newly acquired father-in-law to this

guy by the name of Dave Ramsey. And he was trying to give me all... Newly acquired father-in-law. Very official. He was giving me all sorts of advice, and I did what any other young 20-something-year-old thinks that they know it all. Completely paid no attention to what he was saying and went about our lives and did what every newly married couple does. Buy new cars, brought stuff up on credit cards, thought we were living life what we're supposed to be. And then in the early 2000s, we bought some rental real

estate. And that's where a lot of our debt came in. And at a point, we owned five rental properties, all completely 100% leveraged, done exactly how you weren't supposed to do it. And at the time, we thought we were creating future wealth. And in reality, what we created was a financial disaster. And when 2008, 9, and 10 came and the housing crisis took all of our rental properties down to nothing, we struggled finding tenants. We struggled getting people to lease. The values of them dropped significantly.

And we were at the end. And that was into 2012, 13, where we were two days away from filing bankruptcy. Wow. And about ready to throw in the towel completely and I'm trying not to lose it here. Just couldn't do it. Couldn't let my kids down. And we were two days away. We had the chapter seven bankruptcy petition all filled out, ready to go. And they said, we're just not going to do this. We're going to fight our way out. So my full-time job or our full-time job over the next couple of years became dealing with all the banks, brokers, short sales, avoiding foreclosures, and made our way out from that and sold them all,

took a significant hit and refinanced. We did stupid things like you always say not to do. We borrowed money from our parents. So when we bought the properties, I borrowed money from both sets of parents to use towards the rental properties that we were buying. Your father-in-law who tried to get you to Dave Ramsey loaned you money to buy nothing down real estate? So I might be really good at selling people and getting people to believe what I believe. Wow. Looks like the wrong person converted the wrong person. Well, it's funny. So he passed away

nine years ago, and that was part of it. In 2012, when I saw what he left, he was a guy that drove the 1996 Jeep Cherokee his whole life, and I started to pick up on that. When he passed, I realized the legacy that he had left for his

wife and now his daughter and son. And that was one of the eye-opening moments for me. When I got to see behind the curtains, like, now I understand why you did what you did. And that changed my life. So he was an everyday millionaire. He was an everyday millionaire that you would never know it. He was a guy that drove the old car, lived well below his means, and you just didn't know it. And now we do.

And so after we refinanced all of that debt back into one big snowball, that's been the last six years that we've thrown everything we had at it. And including our house, we had a car loan in there loans to the parents. And it, it, it was significant. There was a lot of dark moments, but so you guys narrowly avoid bankruptcy. Father-in-law passes away and it, it, it was significant. There was a lot of dark moments, but, um.

So you guys narrowly avoid bankruptcy. Father-in-law passes away and you guys go never again. We want to leave a different legacy for our family. That's exactly right. I looked at our kids and they were probably our biggest cheerleaders without it. And without, without any hesitation, they were our biggest cheerleaders and they didn't know it because we just couldn't let them down. I refused to let them down and we weren't going to quit and we were going to make our way out of it. And for a long

time, this story I wanted to keep to myself. I was embarrassed by it. I didn't want anybody else to know. And then just in the last year or so, I'm thinking maybe there's somebody else out there that is going through the same things. Maybe some people have done the same stupid things we did and we can provide hope because there was a lot of dark moments and you're looking at little kids and all of our kids Dave they grew up with the financial peace junior envelopes I mean for 15 years they were the little kids running around with the yellow envelopes and the velcro thing putting their money into it and saving it and now I'm so proud of what they've done and they understand what we've gone through now and they've been a big part of this

journey so we also had fun on the long road trips in the car um we um you know when uh you could turn on the hot spot or the wi-fi we wouldn't turn it on until we listened to a couple dave ramsay episodes and made them listen and then tell us what they learned so uh dangled it like a carrot yeah yes you were a four-letter word many times. Our youngest could sing your opening theme song since I think he was about 10 years old. They weren't really happy when we went on car rides a lot of times because they knew we had to listen to you.

In fact, my future son-in-law is out here with us as well today, and the first time I really got to spend time with him, I drove. You turned into that father-in-law now. That's so this is exactly right full circle it is this is you're gonna love this so that guy right so four years ago um after they shortly after they started dating i went to pick him up from school and it was a three-hour trip back to toledo and i made him listen to three hours of your show because I wanted to make sure that this dude knew what he was getting into. And I am proud to say...

He's wearing one of the t-shirts. He's wearing one of the t-shirts. He just bought his first car for cash and my daughter is proudly wearing a debt-free diamond. There we go. She's getting married next summer. There we go. He's a keeper.

We've decided we're going to keep him. I'm taking high odds on the over and under that Big Jim will be crying walking that one down the aisle. Because Big Jim's a crier like me. Oh, 100%. That's exactly right. Without question. Changing the legacy. I mean, literally in front of our eyes.

Yeah. I didn't say. I mean, I wake up every day inspired to educate, mentor, and influence kids. Together we can change the world. And we have generations of kids graduating from high school having no idea what they're doing, completely lost, having no idea how to find success, thinking that living beyond your means is the norm, having no understanding of personal financial management. And I'm blessed to lead an organization that believes we can create a world that kids will

graduate from high school with a clear vision of future success. Cool. Let me get you guys into the shot before we do the debt-free scream from high school with a clear vision of future success. Cool. Let me get you guys into the shot before we do the debt-free scream. I'm about to run out of time here. Come on. So the name of the kids are Brooklyn, Jimmy, Trevor, and the son-in-law is? Lance.

Lance. All right, guys. Everybody's here with the shirts. This is awesome. What a great story, you guys. You've been through hell, and you made a lot of good stuff out of all that manure. I'm proud of you. Very well done. Jim and Jenna and the gang from Toledo, Ohio.

$731,000 paid off in nine years, making $125,000 to $130,000. Count it down. Let's hear a debt-free scream. Three, two, one. We're debt-free! Well done you guys Very very very well done We appreciate you being with us What a great family

This is the Ramsey Show Feels like it's too soon to start talking about Christmas. I know Thanksgiving's still a couple weeks away, but here's the deal. We know, and George talked about it on Fine Print this week, that the earlier you get started for Christmas with all the disruptions out there this year, the less likely you are to mess up your Christmas budget. So a big reason for that. We're going ahead and get started because we're going to give away some cash. The Ramsey Cash Giveaway. reason for that uh we're going ahead and get started because we're going to give away some cash the ramsey cash giveaway every every year we celebrate with our ramsey show listeners with

our ramsey christmas cash giveaway it's become a tradition this year we're giving away five hundred dollars every week and we've already started and a grand prize of five thousand bucks so given that you're glad we started christmas early right there There you go. So no purchase necessary. Got to be 18. Of course, go to RamseySolutions.com to enter. And you can go ahead and get in on the giving, too. We've got all kinds of life-changing gifts for you and your family. Our famous $10 sale on our best-selling books. That means you can shop over 40 of these best-sellers and envelopes for $10 each or less. You can get books like the number one best bestseller, Total Money Makeover.

Christie Wright's 2020 Gold Planner also is a great gift. They are selling out fast. That's one that is actually scarce. So don't forget the one-time use presence, or do forget the one-time use presence, and give a gift of lifetime of hope. Give away some Total Money Makeover books and some Rachel Cruz's books and Christie Wright's books,

King Coleman's books and christy wright's books king coleman's books on ten dollars each at ramsey solutions dot com open phones this hour this is the ramsey show the phone number is 888-825-5225 flory is in cleveland ohio hi flory how are you? Hi, I'm good. Thank you for taking my call. I apologize. I'm, like, super nervous. No problem. We never lost a patient.

I love that line. My question is, I guess I'm, like, all over the place with my finances, and I just kind of need to know where I should be. To make a long story short, I'm a hairdresser. I worked for one of the top salons in Cleveland, Ohio, on the west side. I ended up leaving that position. The owner, during the pandemic, actually ended up died by suicide. So and then, yeah, so kind of going through a lot.

The new owners ended up basically kind of making different changes. A lot of the stuff that I was taught and I was there for almost 10 years. I've known him since I was like 14, um, big mentor, um, you know, and I learned a lot and I'm grateful for that, but, um, things changed. So I went off on my own. I, and then I, um, started booth, booth renting, um, and I was on a non-compete for a year and then now I'm back in the city that I used to work in, um, running my own studio with both ones. I don't know if you're familiar with that too much, but, um, I rent like a space and I basically run my own business. So my question is, um, I'm trying to shop around for health care.

I know I should have that, but I am 33 years old. I haven't really had the need to have it. My financial advisor, my CPA is all telling me basically not pay extra on my house or do I take that from like my contributing to my Roth IRA? Because right now I'm putting $500 a week, excuse me, a month in my Roth. I have no debt besides. Yeah, okay. George? And I'm just trying to like budget.

And I don't know what my budget is. I'm still trying to figure that out. So you don't have health care right now at all? Correct. Okay. Yeah, that's going to be your A1. I mean, you can jump on RamseySolutions.com. We have insurance pros in Cleveland that can help you navigate this,

help find the right option. And that's going to become a budget line item. And anything on top of that, if you don't have help find the right option. And that's going to become a budget line item. And anything on top of that, if you don't have kids? No kids, single, yeah. Okay, so if you've got no debt, that fully funded emergency fund, you're investing 15% of your income into retirement, then you're going to start paying off that house. But it's going to be only after you've budgeted for all the things

that are a part of your life, like health care. So any money left over, you can put it on the house. But, yes, that's going to cut into the money that you would have put on the house. Hey, Flory. Yes. Today. Get on the dad gun. Get on Ramsey Solutions.

Get one of the health insurance ELPs. Do this today. You want to know why it's so important? Here's why it's so important. The number one cause of personal bankruptcy in america today is not credit cards it's not student loans it's not overspending it's a medical event with no stinking health insurance yes so my other question is you know you kept driving too fast girl raise your right hand dave i will go get health insurance today dave i will go get health

insurance right away today and you're saying um instead of like that money that i was like putting towards instead of like paying up because right now i'm paying more on my uh mortgage george just told you you can't pay extra on your mortgage until you've met your budget and your budget now includes health insurance because you raised your right hand and stuff yes so how do i budget and like what should be my expenses versus my profit like for a small business oh you're talking about the business side pardon so you're talking we got to split the personal on the business side are you running these out of two different bank accounts? So I have an LLC, but I'm basically paying myself from my business.

Okay. Because your budget for your personal life and your budget for your business are going to be two separate things. So we've got to make sure that we've got those separated in different accounts. And when it comes to expenses versus profits, Dave can speak to what that's going to look like as a business owner. But on your personal side, you've got to get that piece down first and make sure that you are paying yourself a living wage. Yeah, it's fairly simple. You're running a single chair operation. Your income is, you have very little expenses. You have the cost of the chair and you have some supplies. And so your income comes in, you pay the cost, you pay your expenses for operating the business,

everything else is profit, and you're probably bringing all that home. And that's fine. You do need to set aside a fourth of that for your taxes. You need to be withholding on yourself because you're an independent subcontractor. And you need to be filing your quarterly estimates once a quarter on that. And, again, your financial advisor or CPA can probably hook you up with a good bookkeeper to do that or check tax pro tax ELPs at Ramsey solutions, what.com while you're there looking at the health insurance pros. So Flory, um, what I hear is somebody who's had a lot of, um, emotional trauma through

the pandemic with the non-compete, the loss of the job, the loss of your friend, the owner that mentored you, the new people coming in jerking you around. Your story had some pain in it, and I understand that, and I'm with you on that. The trick when you go through pain is to come out of it very process and systems driven. John Deloney always says, facts are your friends. And in talking to you, you're just kind of circling the airport all the time. That's why I hit you so hard to make you land the plane on the health insurance. You also need to land the plane on your taxes, land the plane on your budget. You need to

get very systematic and don't be circling the airport anymore. Land on some of these things and get very precise. It's very easy in the pain because the pain was as much of your story as the details were. And I understand that. I'm not against that. I've been there myself. I know how it feels. So, you know, but make yourself the way these things, the way that all the uncertainty and the pain will go away is by putting these detailed processes in place. Yeah. And I want to do one more thing for you, Florian. Kelly's going to pick up and I'm going to gift you one year of Ramsey Plus. That membership is going to give you access to EveryDollar, which is going to be our budgeting tool that can help you put this stuff into place so that you can look at it, like Dave said, fax your friends and go, oh, what are my expenses? What is my income? And you can go watch Financial Peace University. There's a great lesson on insurance

in there that's going to tell you exactly what you need and more importantly, what you don't need. There's a lot of crappy tools out there, crappy insurances. So go jump on that, watch the videos, get plugged into EveryDollar, and you're going to have a lot of crappy tools out there, crappy insurances. So go jump on that, watch the videos, get plugged into EveryDollar, and you're going to have a lot of confidence moving forward. Keto, you made me a promise. Better follow through. Today, you need to go get health insurance. Doesn't affect me at all, but it's going to affect you.

You need to go get health insurance right now, like you promised. This is The Ramsey Show. Did you know you can listen to The Ramsey Show on your smart speaker? Just tell Alexa, Google Assistant, or Siri to play The Ramsey Show podcast. Check out all Ramsey Network shows on your smart speaker today. The Ramsey Show.