The Ramsey Show - App - You Have to Decide That You're Sick and Tired (Hour 1)

Episode Date: August 23, 2019

Chris Hogan, Debt, Savings, Retirement   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 Studio, this is the Dave Ramsey Show, where America hangs out to have a conversation about your life and your money. I'm filling in for Dave. I'm Chris Hogan, and I'm excited to be with you, America. I know you've got money questions. I know you have some things that are on your mind that you want to talk about. This is the time, and this is the place to do it. But what I want you to do is give me a call. The number to call is 888-825-5225. Again, that's 888-825-5225. And if you prefer, you can find us on social. It's at Ramsey Show is how you can locate us. or you can look for me at ChrisHogan360. Either way, we want to be able to hear from you because we want to talk with you and find out what's on your mind.

Because once we find out the right information, we can stay on the path to get to the destination that we want to get to. And so we're excited to be with you. I've got going to the phones. I've got phone lines already lined up. Kelly has got them in and they're ready to go. And so let's dive on the line here. I've got Elena from Minnesota. Elena, how are you?

Hi, Chris. I'm doing all right. Thanks so much for taking my call. Oh, you're very welcome, young lady. How can I help you today? I'd like to know if I should sell my car. I have an older car that my husband uses and I have a new car that I bought in January. It's a 2018 Camry, brand new, off the lot. I mean, it was a loan in the car. I owe $26,000 on it.

Its trading value is $21,000 to $23,000 and private party value is $24,000 to $27,000. I have $229,000 of debt. All of that is school debt. And our combined household earnings is $88,000 net. My husband of two years just started working. He was unemployed. And he had some serious health issues after he got married. And so the last two years, he's not been employed. And he just started working this last month. Okay. Elaine, I want you to take a deep breath for me. Thank you. I will. Alright. I can hear your nerves. And you came in, you came ready to roll. I mean, you

you've been listening to the show. You had all the numbers. I mean, you weren't messing around. You're like, I'm going to hit him with this information before you even ask me. Okay. Yes. Ask me this. Why are you asking about selling the car or not um i just want to get this dead snowball going and i'm just worried that it was a foolish decision um my husband just started

working as a truck driver so he's not home anymore to use my old beat-up car right um before in january when i bought the car um we really were struggling with sharing the car. So I just thought maybe I should get rid of it. Such a waste. I mean, I bought it for $30,000. So I would have lost $4,000 on it or $6,000 on it currently. And I've been making payments on it, but I want to get the dead snowball going fast. Okay, good.

What is the payment on this car? $600 a month. All right. And you asked, was this a foolish decision? What do you think? I think definitely. Absolutely. It was. And it's one of those things where as you get caught up and you're looking for a solution, oftentimes we'll grab the first thing that is available. And in this situation, you grabbed a payment. And so outside of this car and the student loan debt, is there any other debt that you guys have? $700 in medical bills.

Okay. All right. And I'm sorry to hear about the medical situation your husband had, but I'm glad to hear he is working and moving forward. How old are you all, Elena? We're both 37. 37. Do you all have any kids? No.

That's part of the way I got on the debt repayment plan after listening to Dave this month is we want to start procreating, having children, and I'm in a panic mode of there's no way I could quit working with this amount of debt. Okay. All right. Yeah. Well, what you found, Elena, was your motivation. What you found was the thing that's driving you to get focused, to get yourself out of debt, so you can keep more of your money and you can start to be in control of your life. So congratulations on doing that. A lot of people hesitate, Elena, just to get to that point. So I'm proud that you're there. And now, as you start to think about it, you'll start to take these action steps that move you in that direction. So yes, absolutely, I'm selling this car.

I mean, I'm going to get a for sale sign and this thing, you've done your homework, you know, the private sale and the trade in value on this thing, excuse me, the outright sale or the private sale. So you look at this, I am going to get to work getting this thing sold. The good thing is, is the kind of car that you bought is a car that people will buy and that someone else, let someone else have that payment. But I want you to get your life back. I want you guys to be in control. Now, the $229,000, the student loan debt, that's significant. That's not going to be easy, but it too can be paid off. I've talked to people on my show, the Chris Hogan Show. Most recently, I talked to a couple that had $400,000 in student loan debt.

And guess what they did? They got focused, they downgraded lifestyle, and they got intentional. So if they can do it, Elena, I know you can. And so I want you to get focused. Yes, sell this car. You and your husband talk about this gain agreement, and I want you to move forward. Also, I want you to make sure you get plugged in and you're around other like-minded people. We've got the Baby Steps community that you have available that you can get plugged into. Also, I've got an Everyday Millionaire Facebook community as well. All you have to do is

go to facebook.com slash Chris Hogan 360, go to the group section, and you can find Hogan's Everyday Millionaires. Now, why do I tell you this? Because I think it's important for us when you're chasing down something and you're trying to achieve something, you've got to get around other people that are going somewhere. You've got to get around other people that are thinking that way because it can inspire you. It can encourage you. And when you get a little tired, right, or you start to get to that position where you

deserve, oh, that's a dangerous word, America. Oh, let me talk to you for a minute. Have you ever felt like you deserve some stuff? I mean, you work hard, you're taking care of the children, and you're doing things, and you go, Hogan, I deserve a nicer car. I deserve a nicer truck. Well, be careful, okay? And I don't mind you having it. I just don't want you to have debt attached with it because the one thing you don't deserve is a payment. And the other thing you don't deserve is to get penalized in interest because that's what happens when you borrow other people's money. So Elena, thank you so much for your call. Definitely want you to get on that and let me know when you get this car sold. And I like that you all are plugged in and you're focused on wanting to start a family. When you understand what it is you want to chase down it gets you

motivated and keep you focused i got a question here on social uh sean from my everyday millionaire facebook group asks i actually listened to your podcast for the first time yesterday i'm 42 and i'm trying to get out of debt after listening your show, I already made a mistake last year. Uh-oh. He says, I took out approximately $29,000 from my 401k to consolidate my bills. He said, I was paying $700 a month on all my bills, and I consolidated to try to save some money. I'm clueless on what to do next.

Well, Sean, here's the deal. First and foremost, yes, you do not want to pull money out of your 401k because that 401k is for your dreams. And there's a few other reasons, America. You don't want to touch this money. Number one, you activate penalties and fees. You can lose 40 to 50% of it. Did you hear me? 40 to 50% just off the bat with penalties and fees. Plus you tap uncle Sam on the shoulder and you could have now another income tax situation. So you don't want to touch that.

And if you lose or leave that job, that, that 401k loan is due and repayable within 60 to 90 days. So Sean, what do you do? I want you to get focused on paying this thing off. You got to get it attacked. You got to get it out of your life quickly.

Shut down everything. Get focused. Cause guess what? You're not finished. This is the Dave Ramsey Show. You know, I get asked all the time, at what age should I buy life insurance? Let me be clear. If you have a family, if there are people depending on your income, now is the time to have term life insurance. I don't care if you're 20, 30, 40, 50, or whatever. Your age is less important than your financial situation. If you have debt and a lack of savings, it makes no sense to risk your family's financial well-being

based on the cost of a term life policy. Term life rates are just plain cheap, even if you're not in perfect health. And the best way to compare those rates is through Zander Insurance. Zander only sells the plans I recommend and shops among the top companies to find the best rates and the right coverage for you. Call 800-356-4282 or visit Zander.com. You got no excuse to put this off, folks. Bad things happen to people all the time, regardless of age.

And it's your responsibility to deal with this. That's Zander.com or 800-356-4282. Hello, America. You are listening to The Dave Ramsey Show. I'm Chris Hogan filling in for Dave. And I just want to tell you, we've got a brand new office right here in Franklin, Tennessee. And if you have not come by yet, you need to. I've met some fantastic folks out in the lobby over the last few days.

Listen to this. I've talked to people from Minnesota, Texas, Arizona, Kentucky, Indiana, California, New York. I mean, it's been absolutely amazing. So I want you to come by. They're actually showing you a picture right now. Those of you watching on the YouTube channel of the fantastic facility. Melissa Wilson runs Baker Street.

There are coffees and cookies and things over there that I've made. I'm just playing. I didn't make those cookies. I try not to eat them, uh, but they're good. Uh, so come by and definitely check it out. We'd love to see you in America. I'm here for you, for your questions. So if you've got a question on money, I want you to call.

The number to call is 888-825-5225. Again, that's 888-825-5225. Would love to hear from you. Or you can find us on social media at The Ramsey Show. All right, I'm diving on the phone lines. I have Brian calling in right now from California. Brian, how are you? Good, how are you doing, Chris Hogan?

It's an honor to speak with you. Well, thank you, my friend. It's an honor to speak with you as well. What's on your mind? Well, I have a question. My wife, she gets a PTO that they allow to bank and they let you keep up to 700 hours. And once you reach that mark, you have to cash it out. Okay. And my question is we're on baby steps four, five, and six. Would it be wise

to cash out some of that PTO and put it down on the house to pay it down. We owe about $200,000 on it. Okay. All right. Now, Brian, are you calling me to try to get me onto this plan and your wife doesn't know? No, I've talked to her about it and she knows about it and she's kind of in the middle about it, but you have to declare it in 2019 to take it out for 2020. So we have to let them know where she's working that we're going to take it out for next year. Okay, gotcha. And so your thought is, what dollar amount would that actually equal to? It depends how many hours we pull out.

We're thinking maybe like a couple hundred hours, and that would be around $20,000. Okay, that's $20,000. So you guys are out of debt. You've got a fully you got a fully funded emergency fund and your own baby steps four or five and six. So you're investing 15%. We get a lot of new callers, Brian. So I want them to follow. So you all are at the point where you're investing 15%. You're saving for college and you're attacking the mortgage, right? Correct. So we have, we haven't put any money away for the kids college yet, but we're maxed out on our 401 retirement plans.

We're maxed out. Good. All right. Now, how old are your kids? We have one son, and he's nine. Okay. So looking at this, I like to do what I call, Brian, is kind of the pie graph approach, meaning if you're looking at this and you've got time, PTO, personal time off,

and you can sell some of that back and get some money. So you're talking about if you did around 200 hours, that's around $20,000. Well, here's something you could do. As you look at this, you could take $5,000 of that and put it aside for your kids' college savings and then throw the $15,000 toward the house. That's me. That's what I would do. Now, you might say, well, as we look at this, we're on baby steps four, five, and six. If we got 20 grand, could we do five grand

toward the college savings? Maybe you do five grand toward doing something around the house, uh, or something for yourselves. And then that would leave you 10 grand toward the house. So there are many ways that you can slice this, but I like the idea of this because it's the time that's just going to sit there. And typically, if you don't use it, you can lose it. So yes, I like this concept. You and your wife talking, getting on the same page. Hey, everything going toward that home. Remember, the goal is not to buy one.

Any bank will let you come in and sign up for a mortgage to get a home, right? The goal is to pay that thing off and own that bad boy. That's the goal. It changes everything. So stay down that path and stay focused, my friend. Thank you for your call. Next up, I've got Michelle in Texas. Michelle, how are you?

I'm doing good. How are you? Oh, I'm focused and not finished. What's on your mind? Well, I have SPU, and once I got into it and started learning all this, I realized that I'm not even close to ready to start the baby steps. Okay. So I'm behind on a lot of my bills and stuff, and so I don't really know where to start. Okay.

All right. Tell me this. What are you behind on right now, Michelle? Mainly, I'm like $600 behind on my rent. Okay. I'm sorry, not $600, $1,600. Okay. And then just like the utilities and stuff, you know, it's like I'm paying half the electric

bill and then catching it up and, you know, just playing that game where everything's late. Right. Tell me this. What is your income? Between me and my husband, our bring home is a little over $4,000 a month. Okay. And how much is your rent each and every month? It's $750, but with all the late fees we're paying right now, it's $825.

Okay. Now listen, it's $825. Okay. Now, listen, what's causing you guys to be behind? What's the situation? Well, it was that we were having an issue with my husband was struggling with drinking, and he's, thank God, sober now, but we're trying to recover from that still. Okay. But looking at this, do you all have any kids in the home? We do.

We have three kids. How old are they? 11, 9, and 4. Okay. All right. And so with this, you guys are behind. So here's the issue. You're actually beyond ready to get started with Financial Peace University. Did your husband go through it with you?

I haven't finished going through it yet. And he sat through the first one with me, but he's just kind of like, I don't think this is going to work. Okay. Well, I'm going to tell you this, a couple things. First and foremost, I want you to talk with him and ask him to come with you. It does work. We've had 5 million people go through it, and I have processed it and lived it myself, so I know it works. The bottom line is he's reluctant to believe that he's willing to do it. That's a willingness issue, but the plan works. So here's what I want you to do, and I hate that you're in this spot,

but Michelle, this is actually a spot where people make decisions, life-changing decisions. Being behind on your rent, I want you to contact your landlord right now. As soon as you hang up with me, pick up the phone and call them, and I want you to tell them exactly what's going on and let them know when you're going to plan to pay next. Don't hide from them.

Don't duck. I want you to contact them and speak with them. And I want you to talk with them and let them know this is what's going on. You guys have had a mess. You're getting it straightened out. And this is what you're planning to do because you don't want to play with your living environment. This is where your kids are sleeping. But you all also have three massive reasons why you've got to get this straightened out. You've got an 11-year-old, a 9-year-old, and a 4-year-old, and they're counting on mom and dad to fix this. And the good thing is, is you can. And so it's a mindset.

It's a shift. The eating out, that stuff stops. Anything that's extra has to stop because you're trying to play catch up, because you don't want to end up homeless because you weren't being focused and taking care of the things that are necessary. So that has to start. And I want you to sit down tonight and talk with your husband and ask him to please, please come to Financial Peace University with you.

Because you guys working on this together, you're going to have momentum much faster. And let him know how it's making you feel. I hear the fear in your voice. I hear it. And it's one of those things you're unsure. That's why you said you didn't know where to start or if you were even ready. You're ready. You're ready.

Because here's what I know about fear. Fear does not like confidence. Fear does not like positive steps forward. Fear doesn't want you to think that you can. Well, I'm here to tell you, yes, you can do this. I know you can. I've talked to people in much worse situations, but you have to first decide. Decide that you're sick and tired of being sick and tired. I've heard Dave say that phrase for years, and he's absolutely right, because when you get to that point, that's when things start to change. And I tell you what,

I want you to definitely talk to your husband tonight and sit down and don't be flipping about this. Be real. Speak from your heart. Let him know the fear that you have. Let him know how your sleep is being impacted, how you're thinking about this day in and day out, how when the phone rings, you're worried that it's a creditor. I want you to talk with him and then ask him to help. Ask them that you guys are going to join together for the sake of your kids. And I'm telling you, this can be fixed. It's just a mindset and the right actions and the right hands with the right people. That's where things start to change. This is the Dave Ramsey show. Thank you. Hello, America. You are listening to The Dave Ramsey Show.

I'm Chris Hogan, filling in for Dave. And we are taking your calls and your questions about life and money. Had some great callers thus far. And I know you're out there and I know you've got something shaking around in your head that you would love to talk about. So I want you to do this. Pick up the phone and give us a call. The number to call is 888-825-5225. Again, that's 888-825-5225. Again, that's 888-825-5225.

Call us and you can talk about your question. We can get that out there so you can start moving forward. Or you can also connect with us on social media at Ramsey Show or you can find me at Chris Hogan 360 on all the social media platforms. But let us know. Let us know what's on your mind. All right. I'm back to the phones because that's what we do here. And I've got, let's see here, I've got Beverly on the line.

Beverly, how are you? I'm doing great, Chris. How are you doing? Oh, I'm focused and not finished. What's on your mind today? Hey, so my husband and I are both active duty military, and we have completed Baby Step 4. Okay. and I are both active duty military and we have completed baby step four. And we're wondering if

we need to, to pause on baby step six or, um, work on it a little bit if we can. Um, this is our backstory. So we both make about 65 K a year. So about total about 130. Uh, we have, um, all of our debt is paid off besides the mortgage. We have a $20,000 in emergency fund. I just bought kind of a newer car with cash. And so where we are right now is we're both putting at least 15% away for retirement, but I have extra cash and I'm putting 25 away. I'm maxing out my TSP and my husband is using his extra cash to save up for his next newer vehicle. So we are not paying off our home more than we need to right now because we're kind of concerned. We've been here for a year and of course we never know when we're going to get

orders next. And we have about six to 67 years left. So what do you recommend? All right. Well, Beverly, first and foremost, let me tell you and your husband, thank you for your service. I am so grateful as I get a chance to do things with various different parts of the military around the country. I'm so grateful to meet the brave men and women that help protect our country. How long have you been in? I've been in about 14. Okay, and your husband? And my husband about 13. That is fantastic.

Well, listen, I love the progress that you're making. You guys are both making around $6,500, $130,000 together. You're out of debt. You've got a $20,000 emergency fund, and you're investing. So I love this. I like even that you paid cash for cars that were newer to you. This is a good thing. But let me challenge you on something on the mortgage. Okay. Now, here's the deal. You're right. You all's lifestyle. You could be receive orders and have to move. Right. How many times have you all moved in the last 10 years? uh well we've only moved once together but i've probably had about five different bases okay and so and where you are right now you're all in north dakota is this home for you no you're thinking about trying to get up to alaska but we don't know if that's going to be

before i retire or not okay so we might have we might be able to stay here until i retire right we might have maybe one or two other duty locations. And so if you received orders and had to move, what would you do with this home that you have? We would most likely try to sell it. Hopefully we will at least break even, maybe make a little money. Okay. Now, here's what I'm saying with this. I like the idea of staying focused and attacking the home just because

it's when you guys get ready to sell it, right? You know the equity that's being built up as you're attacking the mortgage. But what I would say is this, as you do this and you guys take this next move, which there may be a move after that, if you're only going to be there a year, maybe you take a look at renting on this next one. And then you're saving up because when you do get a chance to be done or you get to Alaska, which is where you want to be, you've got a big, massive chunk of money that you can put down on the home. Does that make sense? Yes, sir.

Yeah. So I would, you guys are very disciplined people. And so I want you to get to that retirement spot without a mortgage, zero payments and a whole lot of money in the bank. So there's nothing wrong with saving up for your husband's next car. That's fine. I like that. I want you to do that with cash.

But be careful of allowing the money just to sit in your account and not direct it somewhere. It needs a destination. So that's what I would do. Again, thank you so much for your service. I'm very, very grateful for you. All right, next up I've got Donna in Georgia. Donna, how are you? I'm doing quite well.

Well, good. What's on your mind today? I retired in May after 32 years of teaching, and my husband was already retired. We're looking, we both have pensions um and the pensions meet our everyday needs we're debt free um we don't owe anything great we also have about close to 200 000 in investments or cash for but i'm wondering i we went through the financial piece on our own with DVDs. Yes, ma'am. And kind of paid everything off and started saving a little while back, a few years ago.

But how much should we have in an emergency fund if we have these pensions? We don't have to worry about losing our job. What is the recommendation for that? Well, I would say this, Donna. You guys doing the math and understanding, how much does it take for you to live on per month? I like the idea of having that emergency fund sitting there just in case. Okay? And so we typically tell people three to six months of expenses.

You guys would be fine with three months of that. You don't have any debt. So what's the income coming in per month for you guys right now? Right now we have about $4,500 a month. Okay. And Donna, what would you say it takes for you guys to live on per month? Probably maybe $2,000 to $3,000. Okay.

I'm not sure. Okay. We have our budget. That's right. But we put things in little funds for this and that. Yes, ma'am. So what I'm saying is if you guys are bringing in right now $4,500 and it takes around $2,300, then you've got $2,200 left over. Does that make sense?

Right. Right. And so in looking at that, what I would do is just kind of work to build up a three-month emergency fund that's just a big cushion. And so if something were to break down, car, truck, or if something around the home was necessary, then you would use that money to be able to do that. Donna, I'm curious, what did you teach for 32 years? Mostly fourth and fifth grade.

Okay. Did you teach a certain subject? Science was my favorite. Okay. I felt like you were a science teacher. Really? Yeah. Yes, ma'am.

I got a little nervous when I picked up the line. I did. I got a little nervous. I thought you were line. I did. I got a little nervous. I thought you were going to ask me where my homework assignment was or something. I was starting to sweat. I was very blessed to be able to teach only science for the last few years. Yes, ma'am. And have the little fourth graders changing class.

So, it was really awesome. That's awesome. What's your husband's name? Gary. Gary. Gary. So has Gary retired as well? Yes, he's retired. He kind of got forced into a retirement a few years ago, even though he wasn't old enough.

But they sort of bought him out. Yes, ma'am. And now he plays Santa every year in November and December, and that brings home about $10,000. Oh, wow. Oh, that's a lucrative Santa situation right there. Yeah. Yeah. It's hard work for six weeks.

Hey, are you all traveling right now? No. Okay. No. Are you planning to travel? We would like to. Okay. Yes, we would like to. Answer this for me. Where's the first place you planning to travel? We would like to. Okay. Yes, we would like to.

Answer this for me. Where's the first place you want to go to? Big Trip, New Zealand. New Zealand. See, I like that. And my next question, Donna, is you guys need to sit down and talk and get it on the calendar. And I want to know when you're going. Because, see, that mindset of you work that hard and you're that focused,

out of debt, they're really intentional. Now it's time to start to enjoy and do some things. And so I'm excited, Donna. Thank you for the call. But, America, I want you to understand something. The emergency fund, why do we want it there? Because it's a cushion between you and life. It's a safety net.

Car breaks down, you need a new battery, you need some new tires, don't stress out. Don't call a bank. You go to your emergency fund and you handle it yourself. And once you use it, you replenish it. Yes, remember that. That's a massive tip. This is The Dave Ramsey Show. Thank you. Hello, America.

You are listening to The Dave Ramsey Show. I'm Chris Hogan, filling in for Dave. And we've had a blast. Fantastic calls. Thank you all for reaching out and having the courage to talk about the money questions that are on your mind. And I just want to encourage you, if you're sitting out there and you think, I've always wondered this, or how do I go about that? I want you to call us. The number to call is 888-825-5225.

Again, that's 888-825-5225. Or you can find us on social. I know a lot of millennials are out there. And so at Ramsey Show, you can find it that way. Or you can hunt for me at ChrisHogan360. So, we want to know the questions and what's on your mind. But I have to let you know, we have a fantastic event coming up. It's our Smart Conference.

And listen to me. If you have not attended a Smart Conference, you're missing out. It is a day that's power-packed full with marriage information, money information, life, parenting. I mean, just all the way around. It's a phenomenal event. So we're going to be in Sacramento on Friday. Excuse me. We're going to be in Sacramento on, let me look here.

We're going to be in Sacramento on November 16th at the Golden One Center. And all you have to do is come see us. Again, if you want to get traction with your marriage, parenting, money, career, leadership, or even personal development, check out this amazing lineup of speakers. We've got Anthony O'Neill. We've got John O'Leary, a leadership expert. Les Barrett, a marriage and relationship expert. Dr. Meg Meeker, the company's leading authority on parenting, teens, and children's health.

Ken Coleman will be there talking about career development. Dave will be there talking about being intentional and goals, and they let me tag along, too. So it's a phenomenal event, a great opportunity. Again, we're going to be there in Sacramento on November 16th for the very first time ever. And so if you want more information on this, you can reserve your spot right now. Tickets for this all-day event start at $59. You can grab yours by visiting DaveRamsey.com or calling 888-22-PEACE. So it's a phenomenal event.

And what I really enjoy is when we speakers are not on stage, we're in the audience listening, taking notes. It's kind of one of those events. And this is my seventh or eighth one. And I'm telling you, hearing some of these speakers multiple times, I still get new information and it gives you new traction. So it's a great opportunity. Really encourage you to come check it out. All right, I'm getting back to the phones on the line here. I've got Chelsea. Chelsea, how are you? I am good, Chris. How are you doing?

Oh, I'm doing fantastic as well. What's on your mind today? Good. So I was wondering, so I'm on baby step number two. Okay. I've recently paid off a couple credit cards. We paid off two cars and we have our last car to pay off. Wow. Yeah. So my question is, should I pull from my stock, um, the rest of that money to go ahead and pay off that car? Or, um, we're in a position where we could pay it off probably by the end of the

year, just with commissions and bonuses, if we should do it in that way instead. Okay. Now, Chelsea, I got some questions. Number one, how old are you and your husband? I am 33 and my husband's 34. Fantastic. And you said you paid off some credit cards. How much debt did you pay off? With cars and credit cards? Just credit cards. How much credit card debt did you pay off? Like $26,000. Wow. And how much in cars did you pay off? Like $26,000. Wow.

And how much in cars did you pay off? Like $35,000. So I did take half of my stocks out to go ahead and pay off my car. Okay. All right. So who's got the shopping problem in the house? So I was out on maternity leave. I had two babies pretty much back to back. So I was out on maternity leave for in two years, a total of probably like six months. So we used a credit card during that

time, but I have the shopping problem. Okay. All right. There you go. That was a long answer, Chelsea, but you got there. Who's got the shopping problem? Chelsea, yeah, there you go. Own it. You got to own it now. I'm owning it. I know you are. How much debt do you have left?

We just have one more car left, which we owe $28,000 on. Goodness gracious. You bought these cars new, didn't you? We did buy them new. Our problem was we didn't start listening to or following the baby steps until, honestly, like two months ago. But our car gives us $455 a month in allowance. So we kind of use that as an excuse. But my goal is to pay them off and use that towards paying off my house faster and investing. Okay.

Yeah. I mean, and so how much in stock do you have left over? $32,000. Okay. Yeah, $32,000. Okay. So were you buying, is this company stock or other stock? Company stock given to us.

All right. Given to you. It was given to you by whom? The company? The company, yes. Okay. And so you know you pulled this other stock to pay off this credit card debt and car. Did you pull that out in 2019?

I did. I just pulled it out. Okay. I'll pay taxes on it. That's my problem. Yeah. Oh, without a doubt. Yeah.

Because you've got what's called a realized gain as you sell that. And here's what I'm saying. Before you do this again, I want you to get connected to an ELP, a tax professional, and let's kind of look and understand where you all are from a tax standpoint, how much you're withholding in the taxes, because what I don't want is you walking this through and then come to find out now you're going to have a $22,000 tax bill. Sure.

You follow me? Yes. Now, this stock, the only reason why I'm okay with this cashing out, because this was an earmark for retirement, okay? If this was a 401K, Chelsea, you and I are having a whole other conversation. All right? Correct. Wouldn't be touching it.

Have you all invested at all in the 401k? Yeah. Okay. Okay, good. Listen to me, Chelsea. I would tell you to read my lips, but we're on the radio. Don't touch that 401k money. Yep, I will not.

You promise? Promise. Okay, good. Because see, that's your dream account. That's the account you're going to live your dreams and do the things you want to do later. So I want you to reach out, first and foremost, to an ELP. And, again, you all have heard us throw this acronym around. It stands for Endorsed Local Provider.

These are people that Dave and I trust. They're going to treat you the right way. They have the heart of a teacher, not the heart of a salesperson. You can find them by going to DaveRamsey.com. There's a button on there for ELP, or you can go to ChrisHogan360.com and click on the Dream Team button. The bottom line is you got to get with people that you trust, and then you can have real conversations. So Chelsea, I like that you guys are attacking debt. The credit card debt that you paid off, $26,000, that's fantastic. Close the credit cards out. Close them out. Shut them down. Cut them up. Get them out of your life. Because, see, the problem is people say, well, Chris, you don't understand. See, I get them

points, and then I got the miles, and then the points and the miles. Guess what? We did the largest survey that's ever been done on millionaires. Talked to over 10,000 of them in my book, Everyday Millionaires. Guess how many millionaires told me that they get points and credit cards and that's what helped them get to this level? Zero. Not one of them mentioned credit card points or reward miles. Not one. So you know what that tells me?

That it's a fictitious thing. It's bogus. Don't fall for the marketing ploy anymore, right? I want you to be focused and intentional on what it is you're trying to accomplish for yourself as well as your family. So attacking debt is a good thing, but don't fall for these myths anymore. And I want you to keep your guard up because as soon as you start attacking debt and getting it out of your life, lo and behold, one of them things will show up in your mailbox. And if you're in a weak moment or you don't have your wits about you, you can fall for the trap again. So I don't want you to do that. I don't want you to repeat any kind of

cycle. I want you to repeat the formula that's going to move you toward success. That's the absolute focus. So you look at this and we understand out there, America, we all get a chance to kind of regroup and make some decisions. I want to encourage you to make 2019 the best financial year you've ever had. And all you have to do is get started right now by doing one thing, and that's deciding. See, once you make a decision, now you start to change how you believe what you can do. And then I want you to follow up with actions. Taking the right steps each and every day. Getting the right people behind you that believe in you. That are encouraging you and helping you understand that, yeah, you know what?

This is something I can do. And so if you're out there right now and you're wondering, wow, yes, Hogan, you got me fired up. I want to do this. What's my next step? I'm going to tell you. I want you to go to DaveRamsey.com and learn more about Financial Peace University. Nine-week course that will absolutely change the game for you as well as your family. Well, listen, I want to thank all the callers for calling in.

Fantastic calls, fantastic day today. I also want to thank producer James Childs, associate producer Kelly Daniel, and I want to thank, of course, you, America, for tuning in. This has been The Dave Ramsey Show. Hey, it's Kelly, associate producer and phone screener for the Dave Ramsey Show. This episode is over, but if you heard about a product or service and didn't have a chance to write it down, don't worry. We list everything that is mentioned during this episode in the podcast show notes section. Thanks for listening.