The Ramsey Show - App - You Don't Get to Negotiate With the Law of Gravity (Hour 2)

Episode Date: June 22, 2020

Debt, Education Tools to get you started:  Debt Calculator: http://bit.ly/2QIoSPV Insurance Coverage Checkup: http://bit.ly/2BrqEuo Complete Guide to Budgeting: http://bit.ly/2QEyonc Interview Guide: http://bit.ly/2BuGnZE Check out other podcasts in the Ramsey Network: http://bit.ly/2JgzaQR 

Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studios, it's the Dave 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, my co-host on the Dave Ramsey Show today, Ramsey personality, Anthony O'Neill, number one best-selling author of the book Debt-Free Degree. We're here to answer your questions about your life and your money. Open phones at 888-825-5225. You know, Anthony, as we are interacting with people on not only social media but here here on the air and what a little bit of traveling we're doing right now,

we're getting ready to gear back up and do a couple of events in different places that are allowing them. We're starting to hear people say, OK, what happens now? The coronavirus got people's attention in their pocketbook. Yeah, yeah, It really does. It has really attracted a lot of attention. And I'm excited because I know what you, Hogan, and Rachel are doing this weekend. Not this weekend, but this week. But here's the very first thing that I'm telling people is to really sit down and get on the budget.

I mean, you really have to know where your money is and where it's going and what you're doing with it. But that's the very first step. I've even challenged myself to dive deeper into budgeting as well, Dave. And I'm a money guy and I already budget, but I'm really even going deeper in that. Well, there's something about an event like this that you go through in your personal life or culture wide. Yeah, that is a wake up call. And people go through a health scare, it's a wake-up call. They go through a nasty divorce and they get to reset and do the

next chapter in their life, it's a wake-up call. They go through the illness of a family member, that's a wake-up call. You go through the loss of a job or the bankruptcy of a business, it's a wake-up call. And the trick in our lives is to answer the phone when the wake-up call comes and say, okay, what now? You know, what did this thing that shook you up? We all shook up, you know. This thing that shook you up, what are you going to learn from it? Yeah.

And there's a lot of people from coronavirus shutdown. They are afraid they're going to lose their jobs, lost their jobs, didn't lose their jobs, but they were scared about the economy, and it made them look at their money. Yeah. Yeah. And here's the thing, too, Dave. Our question is, once we learn, once we all learn, okay, what now?

Do we go back to the normal? You know, do we get comfortable six months down the road when things are back to normal and then we go back? And that's one thing I'm asking people. All right, once you learn what's next, once you learn how to take control of your money, but then when things get comfortable and you're not as scared,

are you going to go back to the normal? Yeah. And that's one thing that I really hope things get comfortable and you're not as scared are you going to go back to the normal yeah and that's one thing that i i really hope that um as people watch this event that this is not just a wake-up call today but it's it's a stay-up call you know in this area you're not that's good you're not going to go back to sleep in this area of your life this is something never again that's what happened to me when i went broke i had my wake. It's what happened to you when you end up homeless in the back of your car. It's your wake-up call. Yes, sir. You have to

decide then, are you going to answer the phone? Are you going to make the changes necessary to never go back there? Right. Right. We're going to be talking about that this coming Thursday night in a free live stream from the stage right here in the atrium. Wait, did you say free? Free. I said free.

We are giving it away. Me, Chris Hogan and Rachel Cruz. For free? For free. Wait, wait, wait. I know this is your company, but are you sure it's for free? It's too cheap. Yes, sir. It makes it sound cheap. I didn't know this. Let's charge $100.

Hey, man, now listen. Now that's worth it. $100? Let's charge $500. Hogan and Rachel now listen. Now, that's worth it. $100? Would you? Let's charge $500. Hogan and Rachel? I mean, maybe you're free, but Hogan and Rachel? Whoa! You just said that on the radio. Come on, man.

I mean, Hogan and Rachel? Come on, now. The personalities. We're worth a lot more than free. Now, I'm just playing. That's a deal, Dave. Yeah, it is a deal. This coming Thursday night, the event is called What Now?

We've got about 1,000 folks we gave free tickets to. It will be our studio audience here in the atrium at Ramsey Solutions from our stage with our digital everything. We're going to be broadcasting live for a couple of hours, basically, a live event. It will be live on YouTube, live on Facebook facebook be live on our uh site but most of all if you want to watch it we'll set it up for you to watch it all you got to do is text the word control we'll send you the link to 33 789 it's free so invite your friends invite the friends at your church invite friends on your facebook group let people know it's free. I mean, after COVID suppression, and some of you are still in the middle of it, but, you know, after the economy starts to come back, what now?

That's what the event's called. What now? COVID-19 and your money. What now? In these current times, people want to know. Okay. What now? And we're going to tell you for free and america listen to this

stop listening to those broke people out there stop get off of instagram get off of youtube stop googling people who are saying all right this is what you should be doing uh with your money especially when you have dave ramsey chris hogan, Rachel Cruz, author of amazing financial books. That's 10 number one bestsellers among us. Come on now. I mean, you cannot. 11 or 12. 12, maybe 12.

Yeah. So, I mean, you have a guy who went from bankrupt to Motown Millions. You have a guy who, and Chris Hogan, who went from banking industry to now net worth is up there and he wrote the everyday millionaire book you have rachel cruz who's learned everything from her dad to now she's out there teaching it around the world and building her own worth you you have solid experts uh tell your friends this is where we need to be at on thursday night tell your boyfriend if he doesn't get on here with you you're breaking up with with him. Whoa! You are throwing... Man! I'm just saying.

Wow. I'm going to be here. Dating advice, right? Dating advice. Mixed in. I didn't give marriage advice because I'm not married, but, I mean, you know. Mixed in. Break up with him if he won't watch it with you.

Yeah. 7 p.m. Thursday night, text the word CONTROL for your free link to 33-789. That's 33-789. That's 33-789. You know, Anthony, I was laughing. I was looking at one of the ads we put out on this stuff, and, you know, if you read comments after articles or comments after things, you know why some species kill their young, right? And it's just some of the dumbest human beings on the planet that come in and have to make some dumb butt comment afterwards.

And some guy goes, yeah, Ramsey stuff's all one size fits all. I said, you know what? That's absolutely true. The law of gravity is one size fits all. Yeah. Yeah. Yeah. You pretty much don't get to negotiate with the law of gravity.

It's going to tell your butt what to do. Yes, sir. There's a principle. If you jump off a building, you will find a sidewalk. Yeah. 100% of the time, one size fits all. One size fits all. Don't touch a hot stove.

That's it. One size fits all. One size fits all. You know, don't be putting your face down in the face of a rattlesnake. One size fits all. Yes. You know, common sense is just that. Don't step in front of a car.

It's a principle that will keep you alive and cause you to prosper. And, yeah, the truth is one size fits all. So I'm very happy with that. Me too. I kind of think, you know, that's right. Dave Ramsey is one size fits all. So I'm very happy with that. I kind of think, you know, that's right. Dave Ramsey is one size fits all. Because it's the truth. It's truth. And the truth will set you free.

The law of gravity is one size fits all. Keep that in mind. If you save money, you'll have some. Whoa. That was big. This is the Dave Ramsey Show. Most people's money problems come from not paying attention. That's why before I spend a dime of my money on something,

I do the research and make sure it's going to live up to what it claims. Recently, I got a great pair of sunglasses from a company called Shady Rays. When you're looking for sunglasses, it feels like your options are limited. Name brand sunglasses cost too much, and the cheap knockoffs are ugly and really don't protect your eyes. Discovering Shady Rays is a game changer. With Shady Rays, you can count on premium sunglasses that protect your eyes and are affordable. They give people the best overall value in sunglasses. They also replace your shades with a brand new pair if you lose or break them from day one of your purchase. And they guarantee your sunglasses for life. Plus, they offer an exclusive for Ramsey Show listeners. Go to ShadyRays.com and use the code RAMSEY for 50% off two or more pairs.

That's ShadyRays.com, code RAMSEY. Thank you for joining us, America. Anthony O'Neill, Ramsey personality, number one bestselling author, is my host, my co-host this hour here on The Dave Ramsey Show. Cindy is with us in Nebraska. Hi, Cindy. How are you? Great. Thank you for taking my call. Sure.

Hello, Anthony. Hey, how are you? I'm good. My boyfriend has recently taken a job that requires travel, and he's 90 days into it and it is in the same field that he's been in for the last three years and he took the job because it's a lot more money doubled his income and currently we have $9,800 a monthly between us and we rent we don't have any. We have a car that's paid for. We have $20,000 for down payment for a new truck and RV. And we have about $1,500 in our savings,

the 20,000 in a separate savings. We're wanting to purchase a new truck and an RV so we can be together because of his travel job. He does have a per diem, which is $2,100 a month that he basically lives off of in the motel with his eats, gas, it pays for everything. I mean, he's able to live that cheap. And the house that I, or sticks and bricks that we rent and everything, our monthly bills are about $1,800 a month. We're wondering if this is the best solution for us financially, just so we can be together. Okay. Let me make sure.

You said boyfriend five times. I want to make sure I'm real clear. You're not married, right? No, we are not. Okay. Then you don't need to buy anything together nope no so who's got the money actually he's actually uh the down payment is his money i have my own this is basically it's his money but he calls it our money because i don't care

what he calls it it's not our money yeah no it's not i know that but i don't have what he calls it. It's not our money. Yeah. No, it's not. I know that. But I don't have to pay any bills. So you're asking this question for him. This is all his money and his number. Basically, yes. Basically? Yes or no? It's not a basically.

Yes, it is. It is. But we consider everything ours. I don't care what you consider. The law doesn't. Yeah. Yeah. If he loads up and takes off and leaves you sitting there on the side of the curb, he's perfectly legal in doing so.

No, my point is you don't combine stuff and start acting like it's with your roommate. You just don't do that. No. All right. So now, once we've cleared that up, then should he do this? No, he should not. He should stay in a hotel okay can i ask why yeah because that rv is going to go down in value he's going to lose fifty thousand dollars on it in three years absolutely yeah we realize that

we are understanding that it doesn't make sense financially. It's a bad financial move. And Cindy, listen to what Dave and I are saying, like going back to the first part, we want to be we want to help protect you, you know. And when I see boyfriend and girlfriend combining income together and combining money, someone eventually gets hurt in the long run. And so that's just not a wise and smart move for you to combine your income. And then on his side is no. I mean, just save up, pay cash, and just travel. If he wants an RV, pay cash for it. But right now, he doesn't need it. Get there, drive there, stay in a hotel.

But the third conversation y'all need to be having is since y'all want to live together and act like you're married, talk about when are we going to get married. Then we won't have to have that conversation. Yeah, that changes the equation considerably when you do that. Yeah. So, you know, the other option would be to buy a $20,000 one because you've got $20,000. That way you don't lose as much. But everything he puts into this is going to be worth zero.

Everything. Okay? The truck, because you're hauling an RV around, these are hard miles and road miles. It's going to have a lot of miles on it and it's gonna have miles pulling an rv when people find that out that thing is devalued quickly and rvs i mean look them up look up what a new one costs and look up what a 10 year old one costs they're worth nothing and so it's not a financial move it's a move that if you have the money to buy an expensive toy like that, and you want to do that, then you've got the money. I got a friend that's got a million dollars saved.

They bought a hundred thousand dollar RV. They're living in their RV going place to place, and they're having a blast. That's fine. They can afford to lose the hundred thousand dollars. They've got a million, but you can't afford to do that, and you can't call it financially-wise. It's a toy that's going down in value, and that's our problem. So hope that helps you. Open phones at 888-825-5225. You guys jump in. We'll talk about your life and your money. Parker is with us in Texas.

Hey, Parker, welcome to the Dave Ramsey Show. Hey, Dave, thanks for having me on the show. I appreciate it. How are you doing today? Better than I deserve. How can we help? So I just have a quick question for you. I know with the whole corona situation, people have kind of put their plans on hold.

And so I'm on baby step number two, paying off all my debts. And the only debt I have is a car payment right now. And I believe the balance is about $13,000 less. So my question for you is, if I have the money, which I do, should I pay that all off now? Or should I kind of pay more each month and kind of stockpile some extra cash just considering the circumstances going on? How stable is your job? It's pretty stable right now. What's that mean? I mean, I believe it is stable.

Okay. Then I wouldn't worry about Corona. I would just operate as normal. Yeah. How much do you have in your savings? Because you said you had all $13,000 now, right? Yes. I have over a year in my emergency fund saved up,

and then I've probably got an extra $13,000 to $15,000 on top of that. Yeah, so not to be rude, Parker, but I think you know the answer to that question. I mean, it sounds like you have at least $75,000 in your savings account. Pay off the car, man. As a matter of fact, when you hang up the phone, go ahead and just pay off the car now. All right, sounds good. I appreciate it. Absolutely done sir open phones at 888-825-5225 amy is in ohio hi amy welcome to the dave ramsey show thank you hey i have a question for you guys yeah um i've got an 11-year-old son. He transferred when he was in second grade and started dealing with some bullying issues on the bus,

getting his head hit against the wall, getting strangled in recess, strangled in the restroom. Third through fifth grade, same issues. We reported it, talked to the principals, the teachers, the guidance counselor. We ended up getting a counselor for him, and we've been meeting with her. That's helped. But here's my question. We're in baby step two. Private school is $975 a month. We still have some good size debt. Do we pay for private school or do we keep him where I'm at, where he's at and just keep working with the teachers and the principals and counselors? How much debt are you in right now, Amy? Well, we've paid off $176,000, but we currently have around $190,000 to go. That's consumer debt excluding your mortgage, correct?

Oh, no, that's including my house. Okay, take off the house. Around $48,000. $48,000. Yeah, $48,000. And what's your household income? Around $100,000. Okay.

Are you renting or do you own the home because you've got a mortgage on it? We own, yep. Have you considered moving? We've thought about it, but we've got a really low interest rate with a cheap payment, and I feel right now with the economy, if we bought, our payment would be higher, even if we got a smaller house. With the economy, I understand. You don't have a lower interest rate than they're offering right now.

We've got a 3.17, 3.15. Yeah, you can get a 2.9 right now. Oh, we can? Okay, good to know. So the economy and, you know, houses are selling and people are buying houses. It's a revenue neutral move to make the move. I think I'd just move. Yeah.

Okay. That'd be one option to consider. Iutral move to make the move. I think I'd just move. Yeah. Okay. That'd be one option to consider. I'd have to protect the baby. I mean, I would move or I would take on the private school. I might look at a different private school, too. How many different options of private schools can I look at? Homeschooling is an option. But if $900 is what it takes to get your kid in a safe situation, we're going to do it.

We're going to do it. We're going to do it. But I think you can do it cheaper than that by simply moving. This is The Dave Ramsey Show. Folks, I love telling you about well-made, well-thought-out products. Today, I'm talking about Grip6 belts. I don't know about you, but I'm not a fan of traditional belts. They never fit right, and they're uncomfortable. Grip6 belts are unique. Owner BJ designed a truly modern, minimalist belt made of high-quality materials with no holes, no flap, and no bulk.

And the buckles come in really cool designs and are interchangeable. I personally own these belts in different styles, and talk about affordability, Grip 6 belts come with a lifetime guarantee. And that means if you no longer like or fit the style of your belt, you can replace them for free. Plus, I like the way these guys do business. Grip 6 is determined to help build and modernize American manufacturing. To learn more and get this month's Dave Ramsey special,

visit Grip6.com. That's Grip6.com. That's Grip6.com. Thank you for joining us, America. This is the Dave Ramsey Show. We're glad you're here. Anthony O'Neill is my co-host today here on the air. And the phone number is 888-825-5225. For a lot of people, this crisis has been a wake-up call. And they're finding out the way they used to handle money didn't work.

And they're hurting because of their situation and they're scared and they're worried it is not too late for them you can participate with us in helping them get some hope for their future regardless of where you are in your financial journey you can lead financial peace university in a virtual class online. It's a lot of fun, and it's very helpful to people. And you can show people that they never have to be at the mercy of another crisis ever again. Lead a Financial Peace University class and help others find hope for their future. Get started by texting LEADFPU to 33789. Text the word LEADFPU to 33789. Nora is with us in Maryland. Hi, Nora. Welcome to the Dave Ramsey Show.

Hello, Dave. Hello, Anthony. It's so nice to talk to you today. You too. What's up? Well, we did FPU, although part of it got cut because of the quarantine. And so, but we're continuing on. We're paying the debt. We're just about to pay off our student loans. And we have two debt left. One is HELOC, to use Chris Hogan's term, and the other is a car note. Now, the HELOC is around 33.

The car note is around between 27 and 28. And logically, you would think you just go with car note, pay that next. But the car note has a fixed interest and the HELOC has a variable interest. So the payments for that have been all over the scale anywhere about $60 difference here and there. How much debt have you paid off so far? Oh, not much. Our gazelle is a little lame right now. But we were not debt-critical to start with. Our biggest bleed was not being on a budget. You have a $27,000 car note. That's debt-critical. Yeah.

Well, we were... You weren't bankrupt, but you were well over into the land of stupid. Well, not for $27,000. It's the only car note. No, that's still in the land of stupid. Well, if you say okay. Okay. I mean, that's just nuts. Yeah.

I mean, what do you guys make? Oh, between 140 and 150. So why have you not paid off the debt? Because we're working on it. Not much. We're doing it. No, that's true. Like I said, our gazelle is a little bit lame, but we're healing on it not much we're we're doing it no that's true like i said our gazelle is a little bit lame but we're we're healing her wounds and we're we're going to kick her in

she's going to start running faster okay because the that affects the answer yeah because how long you're going to if you're going to limp along and stay in debt for eight years i can't really help you much well no but if you're going to get with it and pay this off in one year which you should do then the answer it doesn't matter which one you pay first because one year one year is not going to matter and you should do that making 140 000 and paying off 50 grand nor i'm curious though you said your gazelle is kind of lazy right now why is it lazy what are y'all doing are you enjoying the money no not lazy not lazy but lame why, but lame. Why? A lot of this has to do with emotional concepts of money. You know, we're working it along. The biggest thing was getting it, being able to stay within the budget of what we made per month. And that's the other

thing, which is, I don't know if you run into this and I hope you don't pay your people like this day, but maybe you do. Do you pay them every two weeks or twice a month? Twice a month. It's none of my business, but I'm just asking. First and 15th. Twice a month. First and 15th. Okay.

If it's every two weeks, each month you don't get a set amount of money. Yeah, but twice you do get a set amount of money. You get a couple of months, you get a little bit more money. That's it. So you get a set amount of money. You get a couple of months, you get a little bit more money. That's it. So you have a set amount. What we're trying to do is to live off the two paychecks so that twice a month, excuse me, twice a year when we get the extra paycheck, we're trying to use that to put down debt as well.

Okay. How old are you? Me? I'm 55. Okay. All right. And you guys have been married 25, 30 years, right? No, we've been married, would be 20 years, though.

Yeah, okay. All right. So sometimes, Nora, people have to get in pain before they're willing to change. Other times you can just decide with the power of your intellect, an act of your will, to be willing to change. Other times you can just decide with the power of your intellect and act of your will to be willing to change. Only after that willingness to change occurs at your home will this matter. Okay, because the plan you're on right now sucks. I'm struggling to live on $150,000 and emotionally trying to get it to where listen if I told you in order to save the life of your husband that you had to be debt-free in 12

months you wouldn't be giving me talks about being paid every two weeks you'd be on a freaking budget beans and rice rice and beans you would have rolled up your sleeves and done this because it mattered but it doesn't matter yet. And when it starts mattering, then you're going to pay both of these off so quickly because you make enough money to pay off the $60,000 in debt. I said $50,000, but it's $27,000 and $33,000. You make enough to pay it off in one year. Yeah.

And then all of the, you know, the gyrations of the payments, the two magic weeks um a year where you get three checks instead of two checks none of that matters anymore and so uh really the truth is nor we can't really help you until you decide you're going to get more serious about this because i'm not trying to be mean to you. You're a smart aleck with you. I was a minute ago, but I'm done with that part of it now. It's just a cold, honest truth. It's your doctor looking at you and saying, you're going to die of a heart attack or you're going to lose 50 pounds, but I can't make you lose the 50 pounds. I can't make you want to lose the 50 pounds. I just can give you the information and then you decide if you're going to lose the 50 pounds.

And that's where we are. We can't. But you've got more excuses than Congress has. And so, you know, you're going to have to get the point that none of that matters, that all that matters is I'm willing to do what it takes to change my life. You have to have that I've had it moment, and you haven't yet. And so all I can do is encourage you to find that moment, and that's when things will change for you guys,

and all the math will start working. It's amazing because you make a lot of money. You know what, Dave, and this goes back to one of the questions, not questions, but one of the comments I always hear from people is, you know what, if I made a lot more money, I wouldn't be in debt. If I had more, I wouldn't be where I am today. Yeah, the Ramsey stuff is not for poor people. Right. Same thing.

Same thing. And this call just put some fire up underneath me and i hope america hears this i'm making 140 000 but i still am struggling i'm still emotionally struggling to live on the budget exactly live on that and so this this is why people live paycheck to paycheck some of it is because their income is over some of it the majority of it is because you just don't want to do what you have to do to get ahead of the game. Yeah. And the thing is, you've been okay for so long. Yes.

You've been married 20 years. You've never had a crisis. You're 55. You've never had a crisis. And you've been okay. And really, the enemy of the excellent, the enemy of the best is not the worst. It's the okay. The way the frog gets boiled is you turn it up a little bit at a time

to where he doesn't even realize it's getting hotter and hotter and hotter. And you get boiled, and then you say things like, we only owe $27,000 on our car. Man, I'd be freaking out if I owed $27,000. That's what she owed, but she bought it for more. I know. Man, I'd be freaking out if I owed $27,000. That's what she owed. But she bought it for more. I know, but I'd be freaking out. We don't have a debt problem.

I'd be, yeah, you do. Yeah. You know, and that's what we're dealing with. So you're getting boiled, bro. Yeah. You know, that's what, and it's just the enemy of the best is not the worst. It's the mediocre. It's the okay.

I'm okay. I'm okay. Why do I need to do this? And you won't ever do it. This is the Dave Ramsey Show. It continues to amaze me how ID thieves keep expanding their ways to steal from us. Not only do they commit crimes related to financial fraud, medical ID theft, IRS scams, and Social Security fraud, but now we have to deal with the home title fraud.

Thieves are using your personal information to take out loans, and you end up with a pile of debt and foreclosure notices. Think it couldn't happen to you? 2019 was the worst year on record for data breaches, so thieves have plenty of identities to use. And since our information never changes, the risk never goes away. That's why Zander Insurance is the only program I've ever recommended. Their plan covers all types of ID theft, including home title fraud. Thank you. thank you for joining us america we're glad you're here amber Amber is in Ohio. Hi, Amber. Welcome to the Dave Ramsey Show. Hi, Dave. Thanks for taking my call.

Sure. What's up? So I am trying to figure out a way that I can get out of debt. I have about, I'm like over $30,000 in debt. I make about $34,000, a little over $34,000 a year. I have two boys, and I'm single, not married, and I really want to do this. It would be a great achievement for me.

None of my family has ever been out of debt. They died in debt. I still have debt. What kind of debt is the $30,000? So I have $14,000 on a car loan. $14,000 on a car. Yes. And then I have about a little over $13,000 on student loans and then about, I'm going to say the rest of it are like $3,000 of this credit card.

Okay. All right. And how much is your car note? It's $350 a month. Okay. So you got a high interest rate to go with it. What do you do for a living yes um i work at a call center uh at uh progressive how old are you 27 did you finish school when you got student loans i did not i didn't have a balance between having a son yeah That's fair. How far along did you get?

I got about a year in, and this was me attempting, trying to go back, and keep trying to go back, and it just wouldn't work for me. I would either end up homeless or no place to go. Do you have family in the area? Yeah, I do. I do have family in the area. My family lives in Cleveland. That's good. Okay.

All right. You are why we exist here. Okay? You have a tough, tough situation, and you have a tough three to five years in front of you. But we're going to walk with you and help you do this, okay? Okay. All right. So there's several things going on. One is you got your hands full. You got two little boys and a single mom, and you're working your butt off and you're

tired and you're trying to think about how i can still have a future in the middle of all that you don't have a lot of margin in your time and you don't have a lot of margin in your money am i right that's correct okay so but basically what we've got to do in order to attack this is we've got to get your income up and your out go down. No kidding, right? You knew that. No kidding, Dave. Well, that's why I get the big bucks. Okay. So, but we got, you know, $34,000. You're making it okay, but it's going to be very difficult to knock this debt out and for that matter to prosper and for that matter to do well. So we need a game plan that says the 37-year-old Amber is making $80,000.

Yep. And what are our steps to get there? Okay? And I don't care what it is that's legal and moral and that you're proud of but we're going to move you along that way and that's probably going to involve some community college classes or something like that along the way you're going to have some expense it's definitely going to involve some extra work some part-time work that's why i ask about family in the area but it's not going to be that this is a way of life it's what i have to do to get where i need to go does that make

sense right no it makes a lot of sense because you if you keep doing what you've been doing you're going to keep getting what you've been getting agreed agree so let's get your income up i want to start talking about that car yeah and what we can do to get rid of that thing and get you a cheap car. What kind of car is it, Amber? So it's a 2013 Ford Fusion Hybrid. And you're still paying $14? Did you just buy that? About a couple years ago. So just really quickly here. So what happened was about two or three years ago,

I got a letter in my mailbox from a creditor. And I found out that my mom had taken out a $5,000 loan for furniture in my name when I was still in high school. And I started working. I was making money. And they were going to start garnishing me. So I started talking to other people in my family, and my auntie was like, the only thing you can do right now is file for bankruptcy. I had never even had a credit card at that point.

And I filed for bankruptcy, and I got rid of that. But then my car broke down i used all my money for yeah and see this is this is the cycle this is a cycle that's going to keep happening yeah until you break the cycle with getting the income down and the outgo or the income up and the outgo down and so we've got to move you out of that car into something cheap. I don't know how we're going to do it. We're going to work with you, though, and we've got to get you where you get your income up. So I'm going to stack you up with materials and with support to help you get all this done,

but then you're going to have to go do it because it's going to be hard. It's going to be really hard. Okay. And, and here's the thing, Amber, with the stuff that we're going to stack you up with before you even dive into it, here's what I want you to do today and tomorrow before you get the stuff I want you to write down. What's your vision for your life? Why? And don't answer the question of, well, I just want to get out of debt.

Well, why do you want to get out of debt? Then when you get that answer, go even debt. Well, why do you want to get out of debt? Then when you get that answer, go even deeper. Well, why do you want that? Because like Dave said, these next two to three up to ten years are going to be difficult for you. It's going to require some hard work. It's going to require you telling your friends no. It's going to require you telling your kids no. How many years ago were you living in your car?

That was when I was 19, so 16 years ago. 16 years ago. And you've been here five years in your five so it took i mean less a little less than a decade and your entire life was transformed from the back of your car absolutely okay so that's an important fact and so we're telling you the truth this is not going to be an easy quick fix but here's what i'm going to do i'm going to sign you up for a year in Financial Peace University. Madison is also going to connect you with one of the coaches that has been trained by us and we're going to pay for

it. No cost to you. No cost to you on Financial Peace University. I want you to go through that class. I want you to get in those groups. I want you to get on that budget. I want you to sit down with that coach and the coach can help work you out of this car into a cheaper car. Get your credit cards cut up and start talking to you about an extra job. The other thing we're going to send you completely free is all of Ken Coleman's materials. That's solid. Yeah. His book, Proximity Principle.

You become who you hang around with. And your mom, what she did there was pure evil. Pure. That was wrong. And I know she's your mom, but that's wrong to do that to your kid and basically put you in bankruptcy. You weren't bankrupt. If you'd had some knowledge, you could have gotten out of it,

but she might have been bankrupt. But, you know, you've got the people around you aren't giving you good information. And some of those are well intended. Some of them aren't. But, Ken, that's the proximity principle. We become who we hang around with. And so get a hold of that book, read that book, and get on his website and start learning about how to dress up your resume

and start thinking about what you can do to create extra income. Go ahead and throw her in a business boutique book from Christy Wright, too. She may want to start a side hustle. Side hustle with two little boys might be a better way than a side job. Yes. If somebody's there to watch the kids, some side jobs. But you've got some extra income that has to be created on the short term and then a better career track on the long term for extra income,

and that begins to change your family tree. That and with the idea that you stop with some of the stupid, the debt and the credit cards and the student loans on classes that weren't finished and all that kind of stuff is killing you. It's just killing you. These fits and starts and panicked purchases are taking you apart. So you're a sharp young lady, and you've got a lot on your plate. We love you, and we want to help you.

And you hang on. Madison will pick up, and we're going to walk with you through every bit of this. This is the Dave Ramsey show. This episode is over, but if you heard about an event, product or service and didn't have a chance to write it down, don't worry. We list everything you've heard about during this episode in the podcast show notes section or head over to DaveRamsey.com and click Dave recommends thanks for listening