The Ramsey Show - App - You Can Have Financial Security When Changing Jobs (Hour 1)

Episode Date: February 3, 2023

Kristina Ellis & Rachel Cruze answer your questions and discuss:   The best way to pay off your house early, from the blog: How to Pay Off Your Mortgage Early When can you spend money on a side hustle, from the blog: How to Take Your Side Hustle Full Time How to become financially secure when switching careers, from the blog: How to Switch Careers When You're in Debt When you should start talking to your kids about money, from the blog: How to Talk to Your Kids About Money "Should I move off campus if I want to get a girlfriend?" How to separate assets with family. Have a question for the show? Call 888-825-5225 Weekdays from 2-5pm ET Want a plan for your money? Find out where to start: https://bit.ly/3nInETX Listen to all The Ramsey Network podcasts: https://bit.ly/3GxiXm6 Learn more about your ad choices. https://www.megaphone.fm/adchoices Ramsey Solutions Privacy Policy

🎵 Live from the headquarters of Ramsey Solutions, broadcasting from the Pods Moving and Storage Studio, it's The Ramsey Show, where we help people build wealth, do work that they love, and create actual amazing relationships. I'm Christina Ellis, Ramsey Personality, joined today by my friend and fellow Ramsey Personality, Rachel Cruz. We're taking your calls at 888-825-5225. Give us a call and let's chat. Let's go to the phones. First up, we have Caden calling from Nashville, Tennessee.

Hey, Caden, welcome to the show. Hi, thanks for having me. Hey, thanks for calling. How can we help? So I had a question about the most efficient way to try to pay off your home early. You know, I've heard you guys take questions before about investing versus paying down the mortgage. And I'm really kind of thinking to be able to take advantage of that extra percentage you would get by investing, but then still earmarking it to pay off your home early. So take that, invest it in a brokerage account, let it grow.

When that reaches the amount of the principal left, kind of take it out and pay off the house in one strike, basically, to try to take advantage of the math there but still the principle behind paying off your home early and I was just wondering what you guys thoughts on that were yeah I hear I hear what you're saying and yeah I mean you would have to just assume that the math is going to work for you because when you're investing you're investing for a long period of time right so I mean I always say to be in there for at least five years to consider it investing and so if there is cash that you have that can be thrown at the mortgage, though, your principal goes down and you're going to be paying like as you keep going less and less

with all the interest and everything. So I like the efficiency of not holding it in an account, hoping that you time the market right when you need to take it out. Because if you were prepped on paying off your house in 2022, you wouldn't want to take your money out because you're like, oh my gosh, the market's down. I'm gonna have to wait till it recovers in order to continue my financial plan. So I would rather you just put it towards your mortgage as you go, and then leave investing for retirement and for long term savings versus using it as a middleman before paying off the house. Yeah. Okay. Caden, how old are you? I'm 24. You sounded young. And I love that you're

even calling and asking this question because it's like to be that motivated and inspired early on is amazing. And if you pay off your house, just think about how much time you'll have left to invest. The fact that you're doing this early early hopefully you can knock this out you know in half the time half of 15 years and then it's like you have the rest of your life to invest so it's a great question for sure but yeah and I see what you're saying with the math and I and I get it but but there is something Caden to be said that when you start paying down your mortgage and you start seeing that number get lower and lower and lower, and it's not just sitting in an account trying to play another game, there is that psychology that we see over and over again that it continues to cause you to be

more motivated, causes you to maybe even make more sacrifices than you thought to get your house paid off that much faster. And that's the advantage of watching that principal go down as you continue to pay it off. Does that make sense? But yeah, so I mean, that's always what I would recommend to continue. Because again, that investing game for doing something like this, it's like, well, I don't pay off my house. I want to invest. And then obviously, he said, take the money out. But if you don't time it right, or if it is, if the economy is not doing great, you're

not going to want to take it out and pay off your house. And you're going to have a mortgage for another two years. Yeah, and it's just tempting. I mean, to see that money there and to not really have a goal behind it. There are people who are amazingly disciplined and that can be a thing, but for a lot of people, like you said,

that's a great point, that you'll have all that money and then you're thinking, oh gosh, maybe we need to replace a car. We need to, like you have it earmarked for the house, but life starts to happen and you think, well, we can just use this cash for other things. That's a great point too.

Yeah, it's tempting sitting there. All right, next up we have Nicole calling from Dallas, Texas. Hey, Nicole, welcome to the show. Hi, thank you guys for having me. Of course, how can we help? Yes, so I had two things. I just finished esthetician school and I was going to use that as like a side hustle to generate some more income. And basically I'm now stuck between renting a suite, which here in Dallas, Texas, suites are usually running about probably $1,200 a month to $1,500 a month, and that's kind of on the lower end. And I really am not in the place, because I'm in baby step number two. I just have my car

left to finish, but I'm not in the place to add an additional $1,200 coming out a month for a suite. And I don't really have a clientele yet because I've just graduated. Um, so I'm stuck between that cause I was thinking about doing it at home, but then there's kind of like safety measures with that. Um, but I do know some people that have done it in, in the very beginning of their career. And you know, so that's, that's one thing of just getting your advice on what would you kind of do with that. And then number two, since I'm in baby step number two, I have an eight-year-old. And it's really just me throwing out fear, which I should kind of knock it down. But I've been kind of like sad sometimes because I'm trying to do these steps.

And it feels like I'm in a rush because I have an eight-year-old and I want to put him in like certain activities. But I kind of wanted your advice on that too, because there's some things I want to put him in that you would have to pay for monthly, like tutoring. He needs it for reading. And I don't really have much of a wiggle room to kind of spin that and have him keep going and doing that consistently. Yes. But I just don't want him to miss out on his childhood. Yeah. Because I'm trying to save money. For sure.

Well, great questions, Nicole. Okay, so we'll tackle the first one. So I know for a lot of people, you know, I'm going to use this as an example, Nicole, because the girl that does my hair, she's in one of these private, like, suites, like you're talking about. You know, you walk into a building and there's a bunch and people rent it out. It's exactly what you're saying. And I know for her, even talking to her and her business, she did have to build up a clientele by working at a salon for about two

years. And then she had enough of a clientele that she was able and money ongoing to be able to go and rent out a space and to ensure that she had enough people, enough clients to be able to do that. So have you thought about possibly a salon option for the time being? Yeah, it's just the pay. But I guess it's something I don't have to put out anything. Because there's no risk, right? And so even doing that for 12 months, I think would be wise because like you're saying, it is a risk. And unless you can sublease maybe a day or

two from someone else that has a suite I don't know how all that works but maybe even if you just do it for one day and it's not having to pay the whole twelve hundred dollars where you work at a salon for most of it and then you go and see if you can you know if someone's not using their space every Friday maybe you could sublease that on just Fridays. That's good. And start to do it on your own. Yeah, and Nicole, did you say that this was your side hustle? Yes, I had went to school and that's what I said I wanted it to be for. What's your career right now?

Right now I work in finance with the bank. Okay. Okay, well, I think that's interesting, especially since right now this is a side hustle. Maybe that's kind of just like you can create a five-year vision where at some point this is going to be your full-time hustle. But right now, like Rachel said, maybe you can get that clientele built up

and then do it full-time. But let it be a transition in the process. And kids, real quick, we'll hit on it because we both have little ones. Nicole, he just wants to be with you. I think we get in this idea that if they're not doing this sport or doing that activity,

that they're going to have this terrible childhood. They're not. They're going to be with you. So prioritize. If tutoring is that, have maybe one or two things that you prioritize

that's good for him long term, but his childhood, I promise, is not going to be taken away because he's not doing a bunch of stuff. He wants his mom and you're doing a great job, Nicole. Well done. We'll be right back.

This is The Ramsey show I'm Christina Ellis joined today by Rachel Cruz, and we're taking your calls at 888-825-5225. Let's go to the phones. Next up, we have Theo calling from Phoenix, Arizona. Hey, Theo, welcome to the show. Hello, can you guys hear me okay? Yeah, you sound great. How can we help? All right.

I just wanted to call, and I've been watching the show for a while and I'm 23. I've been working in a warehouse since I was 19. And ever since I was little, I've always dreamed about tattooing and now my dreams are finally coming true. I've been an apprentice for the past six months. My wife's a saint. She says, go get it. My baby's the best. She's two years old. And, you know, I just wanted to call today

and ask once I go into tattooing full time, what steps should I take to make sure that the rest of my life is set up where I have a retirement, I have savings, I have everything that this warehouse job is kind of setting up with the 401 and the medical and everything that a warehouse job would provide you that way. Well, where are you at now in terms of your finances? Do you have any debt? Thankfully, all we have is our vehicles. I bought a $17,000 Titan. And me and my dad, we do handyman on the side, so it's just not an ornament. We pull trailers. We do a lot of jobs with it. We have a

$9,000 car payment for my wife because she works full-time as well. That's it. No school debt, no credit card debt. Our mortgage, of course. What's your mortgage?

We got a house at 218 right before the pandemic. So our mortgage payments are $11,500 every month. Okay. And then what is your take-home pay going to be with this new job? With tattooing, it's very lucrative. My mentor has been tattooing over 10 years and every month he takes home around $15,000. That's great. Theo, are you going out on your own or are you going to be working with someone? I'm going to be staying in the same shop that I'm apprenticing under. It's a great shop in my town. It's been voted best shop six years in a row. I've been very lucky to even get in because I've seen him turn down

countless and countless of people trying to come in. I don't know why he took me on. I used to go to that shop when I was in high school. And when me and my wife found out we were pregnant with our first one, I told him respectfully, you know, I got to take this warehouse job full time, which I did from 19 to now 23. I'm still here. What I love about it is I love my job. I work in a Walmart

distribution. I'm lead safety. I took on so many roles here and I love it. Absolutely love it. It's a people's, it's a people business. And so is tattooing. That's great. That's what I love about it. I'm excited for you. I mean, it sounds like you're obviously extremely passionate and you know what you want. I mean, like, it's like, this is, you've enjoyed what you've done so far and you've been grateful for that. And I love that spirit in you. So, um, yeah, that's so great. So you're, you're asking about, I think a couple of things you're asking about retirement and all of that. So in, at the, since you're working for a shop, did they provide, do they have, you know have a 401k plan?

Do they have anything like that when it comes to retirement? When you go into tattooing, it's all on you. It's his shop, and he's not my boss. He's just the owner. Okay, okay. I think he's the threat, and it's all on me at that point. So basically, it's like I'm starting my own business. Yep, I hear you.

I'm paying for my space. I hear you. Okay. I just don't I'm paying for my space. I hear you. Okay. Yeah. So one thing. I just don't want to get wide eyed. I don't want to be dumb. Yes.

No, we like that. Great questions. I know. So great. That's why I'm calling you guys. I don't know anyone that's really been financially smart in my life. And I want to make sure, you know, like I said, I'm 23. I got a lot of living to do.

I want to make sure I do it right. Yeah. If every 23 year old could call in, man, there'd be so many 30 year olds who didn't have major regrets. I feel like we talked to so many people that are just like if we would have known. So the fact that you're calling now, Theo, is just wonderful. And congratulations on the new job. That is so exciting. And I love the way that you've worked for it. You've persevered. You set that goal. Are you familiar with the baby steps? No, I'm not. I've heard of it on the show,

but I've never really looked into it. I just wanted to call you guys. Do you have any savings, Theo, that's just around that's not in retirement? Just your 401k. So nothing liquid. Okay. So Christina brings up a great point. So walking through the baby steps, this is our seven step plan that really is going to help guide you to do exactly what you need to do. And so that very first step is to get a thousand dollar emergency fund. So I want you to do that immediately. That's the very first thing you're going to do. And then number two, you're going to start working your way out of debt. And it's going to be these cars. And you may look at the $17,000 Titan and be like, man, I wonder like what Kelly Blue Book would say. Do I sell it? If you can't pay it off. Kelly Blue Book told me $10,000. And you know what? Kelly Blue Book ain't wrong. She's old,

but she does her job. She hauls the kids around. Well, our daughter's going to be the second one here pretty soon. Yep. So if you, I would then be paying off your wife's car first, the $9,000, get that paid off, and then be paying off your car. And maybe you guys look to say, like, man, we want to get out of debt so that we have our income. We don't have these car payments. And maybe you look at selling if you can't pay it off in 12 to 18 months, but that could be what you decide.

And then you're going to go look at a fully funded emergency fund of three to six months of expenses. And then we're going to start looking at retirement. Okay. So retirement is going to be a little bit down. Retirement comes last? Yeah, it comes in the middle of the plan. So there's seven steps that comes to number four. Step four will be 15% of your income into retirement. And just tuck this away, Theo, because you probably won't be contributing to retirement here in the next maybe two, three years while you do these first couple of steps. But write down SmartVestor Pro and go sit down with one of our SmartVestor Pros because they're going to be able to help you when it comes to retirement because you're going to want to do

things like open up a Roth IRA. At that point, if you are still kind of out on your own, there's other options for self-employed people to have plans that are tax advantage for retirement. So be looking into that. And then after that, it's kids college, paying off the house early, all of it. But if you hang on the line, Emily's going to pick up and give you a year long membership to Financial Peace University and EveryDollarPlus. Are you guys, are you for real? Yes, Theo, are you kidding? And you and your wife, I want you to sit down and watch these videos

because it's going to be able to walk you through the entire plan. And you're going to learn things like insurance. You're going to be learning things, you know, even deeper in investing when it comes to buying a house. I mean, everything, the basics of what you probably, Leo, what every high schooler should have learned before they graduated high school. This is the class of like, this is the basics of how to win with money. And here's the deal, Theo, if you guys do it, and what Christine has said earlier, at your age, if you guys do this, Theo, you are no doubt going to be everyday millionaires very soon,

very soon, especially if you're making this kind of income, you guys are going to be able to completely change your family tree. And you said you've, you haven't known that you don't have anyone in your life that financially you trust. My mom's been in the field since she was four years old. And Donna's the same thing. I'm Hispanic and no one, I have, I have nine uncles and I have, I have like 10 grandfathers, no one in my family. I want to change that. I want to show our tree that you can do it. Yes, Theo. And that's the motivation.

That's your why. And you just need that plan, and I can hear it in your voice. You're going to do it. I fully, fully believe that, Theo. I won't get there. I just want to, in this life, if you get help, why not take it? That's right. Why not take it? And I,

I wanted to call you guys in today, you know, and just see where to go. Cause past six months, I've been working 15, 15 hour days every day. That's why I say my life's a saint. Cause I only see her five minutes to a day when I see her at work. Cause I come home at 12 o'clock at night, usually I'm out the door at eight o'clock to drop off our daughter at daycare. Wow. Theo, that's just amazing. The fact that you are 23 years old, you are doing that kind of effort. You are having that kind of perseverance. I'm just waiting for the day that you call in for the Baby Steps Millionaire Theme Hour.

Like it's going to happen. That's right. That's right. That is so exciting. And I just think it's such motivation for all the young people out there, you know, for everybody, really, even if you're in your 50s and you're listening and you're saying, no one in my family has ever been wealthy. Everybody in my family has screwed up with money.

And I want that to be different. I want to change our family tree. You can do that right now. And if you're like Theo and you don't know where you're at in the Ramsey Baby Steps, you can go to RamseySolutions.com and click on Get Started. It's an assessment that'll help you figure out where you are and what you need to do next. We'll be right back.

This is The Ramsey Show. We'll see you next time. welcome back to the Ramsey show we're taking your calls today at 888-825-5225. Call us if you have questions about your life, your money, or really just anything. If you're working through a situation and you want another set of ears, give us a call. All right, Rachel, I saw this article a few days ago about Mark Cuban and how he's raising his kids. And I think it's just so interesting with the call we just had from the 23-year-old who's trying to break generational poverty, all these different things. And it's just so cool because even though Mark Cuban is a billionaire, he stated in this article that when he talks to his kids, he says, after your health, my number one thing for you all is I don't want you to be entitled jerks. So even with tons of money, billions of dollars, he is still prioritizing making sure his kids have good money values and principles. I think it's something that so many of us parents worry about. It's like no matter where you come from, you want your kids to be

smart with their money. So many of us graduated from college, myself included, and there were so many things that I just didn't know going out. You know, it was like, there's just all these sharks in the water, all these different temptations, and you just get out into the world and there's so many questions. And so Mark, he actually says that he told his kids that, you know, I'm not just going to write you checks. You don't just get a credit card. You can't just buy whatever you want. His kids are out doing jobs. They're working. They're making their own money. If they want something, then they have to buy it themselves. And I just think that's so cool. You know, we all come from different money backgrounds. We're all setting goals of breaking generational poverty or not having your kids be entitled jerks. Yes, yes. And I know you wrote

Smart Money, Smart Kids with your dad. And I've been working with students for years going to college. And I have seen so many kids who didn't have the money conversation and they end up drowning in student loan debt. Because they didn't know there was another option. Yeah. Yeah. No one talked to them about it. And you've said that, you know, the student loan crisis, it's not just a money crisis. It's a parenting crisis. It is, you know, the result of a lot of parents being afraid to talk to their kids about money or just feeling like maybe they're not qualified. And it's just such an important thing. And, you know, we're both moms of young kids. And it's just it's incredible how early these

conversations can start to come up and how curious they are at such a young age. So for all of the parents listening, you know, when is a good time to start having those conversations with your kids? Yeah, I mean, you can have it as early as five years old. I mean, I mean, it's amazing what a five year old I have a five year old, we have a three, five and seven year old. And, you know, the encouragement I would have for parents, and this is what my parents did for us, is that it doesn't have to be this big, intimidating, you know, having a money summit every other weekend at the house. And we're all going to like, just sit down and like, be obsessed with money and talk about mutual funds all the time. Like, it doesn't have to be like that at all. If you if you take this subject of money

in the ebb and flow of life, and just kind of pull your kids in, it's amazing what they learn from just life and just having a little bit of intentionality. It doesn't have to be a ton. It really doesn't. Just enough where you're like, okay, we're communicating about it, talking about it. And then that next big step is having them actually interact with money and having them do chores around the house. If you have little ones, yeah, if you have ones that are 15, 16, 17, that can go have a job part-time doing that. But earning money, I think is a great first step where they start to learn this is where money comes from money didn't come from mom and dad it comes from working and then

once they make money when you teach them to give to save to spend just those three categories they do it differently than if you were just if they're handed allowance right like every week you just get ten dollars or five dollars because you were just here uh but actually making them work and so it's so funny christina we're not perfect at it by any means like winston and i i'm like man we should probably do more this is like my job i'm like probably more intentional uh but it's funny to already see our kids their personalities because our oldest is like typical oldest she reminds me of my sister even she's a saver Amelia she's really diligent she's hard working like she will unload dishwashers I mean she will go and like that's like the

dishwasher when yeah after it runs she wants to unload it to get you know we pay her a dollar for that like there's a couple of things around the house that we'll we'll pay and she does it and she's like mommy owe me three dollars and I'm like oh my gosh okay like she's so diligent and then my middle Caroline who's five is me as a child, where she's like, I want to do nothing, but buy me everything, you know. So teaching her to work and make money, but she will spend, I mean, if she has a dollar, she's like, I'm ready to spend it. She does not want to hold on to money. She wants to spend it, which was me as a kid. And so just already seeing them again, they're, you know, if they even quote unquote, make a mistake, which that's even crazy to say it for a little kid, but it's so inexpensive. It's so not fatal,

like it is not a big deal. But letting them kind of learn these things as early as possible is such a gift. And if you have older ones in the house, it's not too late. Like you can still be talking to your kids or your teenagers or even having them start to work or mom and dad even put a set amount of money every month in a checking account and we had to budget that money and we were not allowed to ask them for anything like we couldn't ask them for money at all and if we needed more money than what was in our account which we did they gave us like barely anything i was like this is like crazy uh we had to go work so we did we worked through high school and made money if we wanted to use it to go to the mall or

go to the movies. So even if you have teenagers and you haven't been doing this, you can still jump in and start walking with them when it comes to money. And then the last thing, Christina, because I want to hear your thoughts too. But one thing my parents did, and I really want to do this with my kids, even as they get older, is I want to bring them into the struggle a little bit. I don't want to scare them, but I do want to be like, man, mom, our minivan, it's had its run. I would love a new car. When the minivan has its run, it doesn't. It's three years old now, but I'm down the road.

And if we decide not to buy it, to be like, yeah, I really want a car, but we're choosing not to. We're choosing to spend our money somewhere else. But bring them into those conversations of showing them what do boundaries look like what do limits look like and what does it look like to say no even to us as adults like when we say no i want you kids to know that we are saying no to ourselves so that you can learn how to do that because that's that's a powerful principle with money is learning to say no yes that's so good a lot of adults have not learned that principle. I still struggle with that sometimes. Me too.

Okay, so this was kind of a personal question, but I feel like a lot of moms out there can relate to this. We're in Target and our four-year-old is having like level seven, level 10 meltdown because they're not gonna get the toy that they want. And like, I work with money. It's like, we are not excessive people, but we still have those moments where our kids lose their mind when they say,

when we say, no, you can't have that toy. How should we handle that? I mean, I, yeah, I stick with no.

And now I've learned to have the conversation before we go in to the place, because especially like a target, because they even just want to go like, we'll like walk the toy out. So I'm like torturing my own kids. Cause I'm they even just want to go like, we'll like walk the toy out. So I'm like torturing my own kids because I'm like, we want to go see. I'm like, sure we can walk, but we are, but like before we get out of the car, I'm like, we're not buying anything. We're not. And then, yeah, I mean, for me, if they're throwing a fit, I don't personally want the public shaming. So I'm like, I would probably just leave. Just like gather them

up. Like, okay, we're walking out. We are walking out. That started to be our conversation in the car. I'm like, we're not buying anything. And if you ask to buy anything, we are leaving. And you don't get to go to the store next time. That's right. That's right. Oh, man. And we love the store browsing.

Yes, I do too. See, my problem, Christina, right now as a parent is I find this is where I get in trouble is because if something breaks or you know a toy messes or something I got in the habit of being like okay well let me look up on Amazon and it's like eight dollars and 99 cents like well we'll get another one I did that for for a hot second over and over and over again to the point now my kids are like, well, just Amazon it. I'm like, what? We're X-ing that. And I'm like, no, because we have to pay for it.

And no, we're not. We're not. You have to take care of your stuff. So as a mom, I created that habit in our kids. I think it was during COVID where I was like, it's, you know, we'll just figure it out. And so I had to backpedal on that one because they learned that from me.

And I thought, oh no. And I told them like, no, this costs money. And my and my Caroline was like no just go on your phone mom to Amazon and it just shows up and I was like it's magic I just know that costs money that costs money and we don't have any and I tell they think we're broke because I just tell them all the time we don't have the money for that we have to pay for lights and food in the refrigerator and we don't have any more money I have told them that a lot. They don't know about our emergency fund. Well, it's been funny. We did no spend January and I have a four year old and he was impacted by it. I'm like the fact that he did not love no spend January. I'm like, how do you even know? How do you know? So parents,

your kids are aware. Have these conversations. We're having these conversations. And we're not perfect. That's right. Even though we do this every day, it is an ongoing process. We'll be right back. Give us a call. 888-825-5225.

This is The Ramsey Show. We'll see you next time. Welcome back to the Ramsey Show. Lots of you started the year fired up to make changes with your money. But now that some time has gone by, you might be starting to lose momentum. You're not alone. Change is hard and it's way harder if you're trying to do it alone. That's why you've got to have people walking with you. And that's why a Financial Peace University class has been a game changer for millions of people.

In an FPU class, you'll learn our proven plan to get out of debt and build wealth. You'll do it with other people going after the same goals as you. Plus, you'll have a coordinator guiding you through the whole thing. It's a judgment-free place to talk about money and get the accountability you need. It's people leaning on people. We need people. That's why this works. You don't have to figure this out alone. There are hundreds of FPU classes going on all across the country, both online and in person. So go join one right now.

To find an FPU class, go to ramsaysolutions.com slash FPU class, all one word. That's ramsaysolutions.com slash FPU class. All right, let's go back to the phones. Up next, we have Michael calling from Tyler, Texas. Hey, Michael, welcome to the show. Hello, I'm a college professor and I'm single with no kids. So I live on campus in a private dorm room and that saves me about $1,100 a month. Nice. So my coworker, my coworkers, I like where this is going. All right. My coworker, who's a big Dave Ramsey fan, he says that I should move out because no girl is ever going to want to date a guy who lives in a college dorm.

And has that been true for you so far? I think my issue in that area is less about my living situation and more about I'm just kind of in a smaller town. And yeah, there's a couple of selectivity issues going on there. But I've never met anybody that said like well I don't want to go out with you because you know I don't think so Michael at least not the kind of woman you would want eventually like to marry right I mean if you're living with your parents I could see someone being like hmm okay so what are we doing there uh but you're a professor at the school and so your room and board is is it it's free right for you you're not paying anything well no it's just really really cheap okay okay everything paid no bills or anything yeah didn't deloney live on campus yeah he did with his fan with with sheila and i want to say one more a baby

a baby we're getting a baby signal from the booth yeah yeah dr john's alone that's that's a host on the show he him and his wife that's right sheila they they lived there and he's like the coolest of the personalities so like if you need somebody with some swag you can be like hey deloney did it deloney lived in a dorm with with a wife and a kid no michael i don't i don't think so at all i don't think that that's going to be a major turn i don't think it would be for me i think again it's and it's not because you don't you you lack uh drive or willpower like those kind of things could be a label on someone that's still living at home that you're like why are you still living at home uh

but you're doing it for a reason intentionally and it's a yeah i don't that doesn't bother me so to this friend who said you're not going to be able to have any game if you live in a dorm, is he broke? Um, he well, he's married. He's he's all right. He's doing all right. I feel like there's a good chance that you might be taking advice from somebody who's broke because he's a big Dave Ramsey fan, though, right? Is he a Ramsey show fan? The friends you said?

Yeah. I mean, he doesn't have a bunch of income, but he's doing well for him. He's doing big Dave Ramsey fan though, right? Is he a Ramsey Show fan, the friend you said? Yeah, I mean, he doesn't have a bunch of income, but he's doing well for himself. He's doing all right for himself. Yeah, he's not broke, bro. So listen, Michael, here's what I, here's my, I wish Deloney was on the show to give you relational advice.

Here's my thing. If it becomes a pattern of women that you really do, a woman that you really like, and you guys have been dating and she's like I can't date you anymore because you live in the dorm and that happens two three times then maybe there's a pattern of okay maybe Christine and Rachel were wrong maybe maybe that this thing is is an issue but I just don't think that's gonna happen and also also like if you are on this plan and you want to build wealth and your goal is to be a Baby Steps millionaire, I mean, do you really want to be with someone who has a problem with you scrimping and saving and doing what you've got to do to build wealth?

I mean, because $1,100. I can't wait for my friend to hear this. Here's a question for you, Michael. Do you eventually want to be a homeowner though? Like, is that in your future to say, I would love to own a home? Because owning a home is a great investment. And we do recommend people doing that when the time is right for them financially. So that's a goal for you, right? You don't want to live in a dorm your whole life. Honestly, I think now you might be turning against me because here's my position. If I get married, yes. But if I just end up not being married, then I would not buy a house. If it's just me, just single me, I don't even have any pets or anything,

I wouldn't buy a house. Okay. Well, I would disagree a little bit. I think owning a home and having equity and all of that, I think it's just a great asset to your overall financial picture. But for the moment you're in and for the dating advice that christina and i are going to give you i think you're good i think you're fine uh yeah i'm with you well thanks for the call that is that is a great question i hope

i hope i'm right sorry michael if i ruined your love life like if if i am wrong and people won't date you because you're in a dorm but i don't think that's gonna be the case. All right. Up next, we have Ashley calling from Houston, Texas. Hey, Ashley, welcome to the show. Hi. Hi. How can we help? question. So my sister and I own a home together. It is paid off, but I plan on separating with her probably within the next like two years. And I'm not really sure how to go about it. Okay, give us a little backstory. How did this come about? Well, we, I purchased a home when I was 18. It's paid off, so it's not like we have a note.

But I don't know, like, should I save up the cash to buy her out on her end, or should I take out a loan for it? I don't know. Is this a tumultuous relationship, or is this, like, a pretty clean break? No, it's, yeah, it's pretty clean. It's just our lifestyles are just becoming different, and I would just rather be alone. it's yeah it's pretty clean it's just our lifestyles are just becoming different and I would just rather be alone yeah and is and is her name attached to the house legally

yeah both of our names are on that it is on the house okay uh how much is that how much is the home worth right now about 350 okay um and do And do you like the house? Do you want to keep the house? Yeah, we've agreed that I would keep the house, and then I would just pay, you know, her half from the house. Yeah. Okay, so. Yeah, I'm not sure how to go about that.

How much do you make a year? From like $75 to like $100. Okay. And you're thinking it'll be another two years? Yeah I'm gonna I'm I gave myself to like I was like I'll wait till I'm like 25 and then I'll be like okay well it's time. How did y'all pay off the house? Was this from an inheritance or just aggressively paying it down? We got an inheritance when I was 18. Okay. Do you have any of that inheritance left? I have about $40,000 in cash.

Do you have any other debt? A little bit of credit card debt, but I'm paying that off. Okay. How much is a little? It's like 12 000 oh okay um yeah i mean i mean ashley there i mean there's a couple things you guys can do i mean you could you could sell it and you take your half of the equity she takes the other half and you start a clean slate once you are debt free you have an emergency fund i mean you want to be financially

ready to do that if that's what you got i mean, you want to be financially ready to do that. If that's what you got, I mean, that would be clean to do it that way. If not, yes, you are going to have to buy her out. At that point, she would take on a mortgage, correct? Yeah. Yes, you would have to. You'd have to take the loan if you didn't have the cash. And so a part of me is like, okay, go and buy a um you know 175 you know 175

thousand dollar home right now and take a mortgage out would you go do that right now no okay i'm not entirely ready for that yet so and i don't know if you're gonna be entirely ready for that in two years either. So those are the questions you have to ask yourself is can I afford to be able to do this? And if you did,

you know, you'd want to do the math and make sure that, you know, that loan is no more than 25% of your take-home pay. But I'm a little nervous actually. I kind of would like you to just start clean by selling it

and you guys go your separate ways. Yeah, and I would sit down with a real estate attorney to just make sure that as you guys break this agreement that all your I's are dotted, T's are crossed and everything is clean, even though it's family. Sometimes things can get messy.

All right, that puts this hour of the Ramsey show in the books. We'll be back. Hey, it's Christina Ellis. If you like what you heard in this episode and want to know more about getting started on the Ramsey Baby Steps, go to ramseysolutions.com

and click on the Get Started button. We'll help you figure out the best next step for you based on your specific situation. That's ramseysolutions.com and click Get Started.