The Ramsey Show - App - You Have to Make a Clear Plan for Your Life (Hour 1)

Episode Date: September 29, 2020

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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 am Dr. John Deloney, here with my good friend and co-host, Mr. Anthony O'Neill. We're here to talk to you about your relationships, your money, your future, your past, all of it, Anthony. You ready to rock and roll? Man, it's going to be a great day, man. All right.

We're standing by, ready to take your calls at 888-825-5225. That is 888-825-5225. And the phone board is lighting up. Let's go ahead and start here in johnson city tennessee with duncan duncan how are we doing good man good you excellent excellent how can we help i was just calling to ask um when should i start my landscape business i am 19 years old currently in college which my parents are paying for. And I also live with my parents.

And I was wondering, when should I start my landscape business? I was planning on starting it this coming spring. What does a landscape business mean? Does that mean mowing a few lawns or having a yard cleanup business, or does that mean quit everything, buy a bunch of mowers, and go full force? A little bit of all of that. I want to mow a few lawns, but also do that as my main source of income. What stops you from just starting mowing right now?

Well, lack of actually experience doing it. I actually also work for a landscape company on a mowing crew. I was planning on working with that company for a year and getting the actual experience before I do it. I think that's a great idea. What do you think, Anthony? Are you in school right now, Duncan? Yes, I am.

What are you in school for? I'm getting my associate's in industrial technology for an automotive service. Okay, okay, okay. All right. And are you going to move on for your bachelor's? I do not know yet. Okay. So here's the thing with landscape.

I like the fact that you actually own your own business. I have a product called a teen entrepreneur toolbox kit when I'm teaching young people how to actually start their business in middle school. And so if you're saying, let me ask you this much, how much do you think you can make a month if you start this business now? I haven't really looked into that yet. Okay. But I probably can make a thousand. Okay. But I probably can make a thousand. Okay.

Do you have potential clients? Yes, I do. Okay. So you're already cutting some grasses and doing stuff like that, right? Not regularly. I have done it in the past for church friends but I'm not

it's not regular here's what I want you to do when we got the phone hang up I want you to hold on I'm going to have Kelly give you a copy of the Teen Entrepreneur Toolbox Kit because I think right now you got to do some research so you need to assess your situation assess your clients you need a sales pitch you need to make sure that you you got to do some research. So you need to assess your situation, assess your clients.

You need a sales pitch. You need to make sure that you really want to do this, because I think, and from really just talking to other young people, Dr. D, you can honestly do anywhere between $1,500 to $2,000 a month just by cutting grass on the weekends. So this way you can focus on your school during the week, and then on Friday, Saturdays and Sundays, boom. But then check this out there, Duncan.

The winter time is coming up and you're in Tennessee. So that means it's going to be cold. We're not going to have grass to cut. So what can you switch until we have the new season come across? And so the Teen Entrepreneur Toolbox Kit is going to really help you understand and ask yourself the right questions. I think it's a great idea for a young person to be an entrepreneur. Sit down with your parents, come up with a vision, come up with some goals, and even ask them for some wisdom.

But, Dr. D., I want him to hold on to the line. Kelly's going to give you a copy of the Teen Entrepreneur Toolbox Kit. It is geared for someone a little bit younger, but the principles will apply for you, especially if you only be in the age bracket. But such a great question. So is there a hesitancy, Anthony, with 19, 20, 21-year-olds, instead of just start cutting grass, man, just start mowing lawns, that they're intimidated by this idea of I've got to start a business? Like there's this big meta B, right? I've got to have a thing. I've got to have a plan.

Instead of, man, just start cutting grass. And then when you get three or four or five of them, then figure out your next steps. I don't know if this generation is scared, Dr. D. I think this generation, younger generation, they want to be their own boss. I think they don't know how to do it. I think that scares them away because it's like,

okay, I want to do this. I don't want to have to go into work at 8 o'clock in the morning or nine o'clock at night and get off at a certain time. So for them, it's like, okay, I want to go out here and do my own thing, but where do I start? How do I do this thing properly? How do I gauge my profit versus loss? And this is big stuff. And there's nothing really out there that teaches a young person how to start and run a legit business, which is why the team and I came up with the Teen Entrepreneur Toolbox Kit. Very cool. All right, let's go to James out in Tulsa. James, how are we doing, brother?

How can I help? Hey, guys. Thanks for taking my call. You bet. I just had a quick investing question for you. So my wife and I just recently got out of debt, saved up the emergency fund in the three to six months, and really with no kids, we're trying to get on our way to being everyday millionaires like Chris Hogan talks about.

And just a two-part question for you. I work for a company that has a fantastic 401k match. They actually match at 9%. Good question. So as part of that 15% investment strategy, would that mean me matching at 9% and them contributing at 18%? Or do you guys still recommend the full 15% over what they match? So then, go ahead.

Go ahead. Go ahead. What's your part two? The second part is basically through our retirement plan, we're offered three different ways to contribute. They call it before tax, after tax, and then Roth 401k. And I'm just

wondering if there's a mix between those that's best or if I should just stick with before tax or Roth. Nah, Roth, man. You're going to do Roth all day long. That's the best. Anything with Roth on it, I get excited. And then on top of that, Roth 401k with a 9% match, oh, I really get excited. I'm running towards it.

So here's what we recommend. You're going to do 15% of your household income. So if they're matching you with 9%, Dr. D, I want him to put 9% in, and then the other 6%, you can go ahead and go over to a Roth 401k. Not a traditional, not a 401k but a roth

ira so you're going to have a roth 401k james and a roth ira you're going to match up until nine percent you're going to take the other six percent go to a roth um ira invest into a growth site mutual fund and what i recommend for you and your wife is to sit down one of our smart investor pros so they can really help you walk through that whole process. But the fact that you're getting 9%, what? I know. And the match, right, is just gravy. Oh, that's good money.

You put your 15% in, and the match is gravy. It's gravy, man. It's on top. Yes, sir. You and your wife are winning, good man. Way to go. Yes, sir. This is the Dave Ramsey Show. folks i love telling you about well-made well-thought-out products today i'm talking

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and get this month's dave ramsey special visit grip6.com that's grip6.com This is John Deloney, my good friend Anthony O'Neill, taking your calls on life and on money, things that are going on in your heart, in your home, however we can help. Give us a call at 888-825-5225, 888-825-5225. Let's go to Jesse in Columbia, South Carolina. Jessie, how are we doing? We're doing well, thanks.

Thanks for the call. I hope you guys are doing well. Okay, so I'm actually really excited about my newfound budget and being able to manage my money a little better. I am at 35K a year, non-degree professional. I'm a single mom and I'm close to having an emergency fund. No credit card debt. I have one student loan of $10,000. And so I am on track to have my emergency fund by January. But I have that 10K student loan, and I'm so excited to be out of debt.

I wonder if I should just pay that off and then just restart for the emergency fund and then kind of move on to starting my retirement 15% after that. You think I should take the emergency fund and throw it at the student loan before it starts accruing interest in November again? Before we get into the nuts and bolts, I've got to ask, you sound like you just discovered this crazy, weird group of people who follow Dave's plan. How did you stumble onto this wackadoodle group of adventurers?

How did you find us? I have a couple friends who have mentioned Dave Ramsey and I have beginner investing like books that I just started picking up, but you know, they say, you know, get out of debt first. It's all very consistent. Like before you can invest, you need to get out of debt. So then I got on this and then I started watching Dave Ramsey and then I follow O'Neill and I like Dave Hogan. I love it all. Right. And so I started watching Dave Ramsey, and then I follow O'Neal, and I like Dave Hogan. I love it all, right?

And so I'm excited, and I love to give too. But me, I give when I don't even have it. So I'd like to be in the position to give and actually have it. But I just want to make sure I'm moving forward in the best way, right? I'm not rich, but I feel better in my nominal income with being able to manage it a little better. I love it.

A lot better, actually. Well, welcome aboard, Jessie. I'm going to turn it over to Anthony. He's going to run you down the debt snowball and the baby steps and walk you through step A, step B, and on to the next. Well, Jessie, I want to say this, man. Thanks for joining the family. I mean, you're a part of the family. We're going to walk you through this process.

So help me understand how much money do you have in your savings account right now? Five, $5,004 and 54 cents. Okay. You make $35,000 a year, correct? Mm-hmm. Okay. And how much debt total do you have right now? I have that student loan for $9,932 and I have a personal loan, which I fully intend to pay back, uh, to some, to a couple of dollars of mine for 10,000. Okay. So you have a personal loan of 10,000 and you have a student loan debt of 10,000. Okay, cool, cool. So here's what I'm going to recommend. No, I don't want you to rush as far as in – now, Ashley, wait. The personal loan is not really – it's debt, but it's not –

it doesn't have a due date on it. So, yes. No, and they're not pricing, and it's interest-free, and they would much rather me just be stable. I got you. So here's what I want you to do. Yes. Go ahead and tax student loans. I want you to go ahead and pull out all the money in your savings account and leave a thousand dollars in there because that's what we teach for babysat. Number one, a thousand dollars. Take all that, put it towards your student loans and get aggressive going after that. Now, when you pay off your student loans, I want you to pay off the debt to your relatives before you go to babysit number three to go on ahead and start building your emergency fund.

Now, that's going to be with your income. Have you considered, Jesse, picking up something on the side? You said you do something right around education, if I'm not mistaken? I am a virtual admin for a tech company, and so I enjoy the work. It's low stress for me. Have I considered something on the side? I have, right, and I think I made a bad decision in going back to school because I'm paying for it.

I've kind of exhausted all these student loans and the years of mistakes. Nonetheless, I am back in school to just to finish up this associates in human services, but guess what? There's no money in human services. So I'm just doing this to have like an associate on my resume. Like, okay, you finished something, right? I'm very close. I'm three classes shy, four classes shy. I'm taking three this semester. And that was a thousand. Anyway, I want you talking to the daughter and correct me if I'm wrong. Please tell me if I'm wrong live on air. But Jesse, I'm not a huge fan of someone spending money just to have something on their resume.

I know. I want you to spend money. Yeah. So it's like I want you to spend money on Yeah. So it's like, I want you to spend money on something that one, you did the research for number two is going to be a return for your investment. And number three is something that you actually enjoy. So racking up and spending all this money on education, just so it looks good on a piece of paper. And my opinion is not wise. I want you to spend money, get education that when you invest into that education, it's going to return you something. You'll go from 35 to 60.

So if you're saying it's not, then you need to stop. And you need to step back and do the research and figure out, okay, what can I invest into? What skills can I learn? What trade can I learn that gives me a return on my income and my income can actually go up? And I'm with you and I've been with you from the gate, right? I did want to mention this though. I have taken a grant writing course, right? The grant writing course was great. I thought the Associates in Human Services would put me in a good position and would align with the trajectory of starting this nonprofit that I have in mind.

Like my dream is to help in another realm, right? Getting this nonprofit started where human service is actually the thing and utilizing that grant writing skill that I've acquired. So I had a plan for the human services. I just wanted it to substantiate, you know, me being in this field, period. So, so, so Jesse, I love how you're thinking. One of the key ingredients to success, Dr. D, that I've learned, and Jesse, this is for you and America, is you've got to have a clear vision and a clear plan for your life.

And when there is no clear vision, then there's no clear plan. Where's there, where there is no clear plan. You don't have daily habits. We don't have daily habits. You're just doing things just to be doing things. And so right now we gave it a practical and how to go ahead and get out of debt for your student loans. Now we just want to give you a bit more extra. You need to get your income up, but to get your income up, there needs to be a clear vision and a clear path to where you want to go. I would highly recommend, Jesse, that you get King Coleman's book, Proximity Principle, because this book is going to really help you understand what is your sweet spot. And I think you need to identify what's your sweet spot. What are you passionate about?

And then you'll see your income go from $35,000 to $60,000 simply because you spent time with really finding your sweet spot and having a clear, clear vision. And she touched on something I think many people who find this group, find the baby steps, they get super excited, and they look at this debt, and their heart sinks, and they just want to liquidate everything, sell everything, because they realize what baggage this debt is. And I think, again, we say this over and over again, but if she goes and clears out her emergency fund, clears out her savings, there's a 100% chance tomorrow two of her tires are going to get flat on the way home. Yeah.

Her check engine light's going to come on, and she's going to have nowhere to go but back to a credit card. Right. So having something in the bank's important. And as you mentioned, if she's just taking classes for something fun to do, she's not in a position to be doing things just for fun to do right now. She's in gazelle season. She needs to be running as fast as she can, pick up some extra work while still honoring being a single mom. I know that's a busy, wild life.

But stop the tuition payments, start a second gig, and you're going to find real quick you can get that money paid off. Easy. Real quick, Anthony, you mentioned paying off family. Just to remind listeners, there's no hanging due date out there. Why do we pay off family? There's still debt. And in me, I don't want to owe my family members. Actually, to me, they're worse than debt.

The psychological deadline is worse than my FICO score. I'm like, hey, boy, I loaned you $100 10 years ago. Pay it. Pay it. That's right. All right, stay with us. This is The Dave Ramsey Show. Thank you. All right, we see him live on the debt-free stage. Live in the lobby

of Ramsey Solutions, we have Jackson and Nicole from Portsmouth, New Hampshire. Welcome. Thank you. Thank you. How exciting. So you're here to do your debt-free scream.

We made it all the way down. We did. All right. So tell us how much you paid off. $265,000 in 33 months. Woo! What in the world? Either you had a lot of credit card debt or you sold a house.

What did you sell? We paid off our mortgage. Congratulations. You're officially weirdos. Weirdos. Outstanding. All right. What was your range of income during that time?

We started out at $170,000 a year all the way up to $250,000. $250,000. All right. So you all had a big shovel to dig out of a big hole with, right? Yes. That's correct. What do you all do for a living? I'm an airline pilot.

Excellent. Wait. What airline do you fly for? Can I ask? American. American. Okay. Yeah.

All right. If I see you on a flight next to him, I'm like, American. American, okay. Yeah. All right, if I see you on a flight next to him, like, yeah. Yeah, come on up. Excellent. And you, young man? I do some call firefighting and EMS for my hometown organization and a couple of miscellaneous side gigs here and there. Oh, that's fantastic.

Good for you guys. Okay, so what type of debt did we have? This was the mortgage. All of it. That was it. That was all mortgage. All right, all mortgage type of debt did we have? This was the mortgage. All of it. That was it. That was all mortgage. All right. All mortgage.

No other debt, huh? That was it. Why? It really started... I guess 13 years ago. We made the mistake of buying our first house 0% down. So whenever the housing market crashed, I had lost my job. I was on unemployment. We couldn't refi. It was just very frustrating.

Yeah, it was frightening. And we learned the lesson then. And then, you know, the economy rebounded after 08 crash and we landed on our feet. But that was our why when we started the program. It was a big wake up. Yeah. So the same house that you had in 08? Different house. We actually paid that one off in 13 or 14, moved up in-house, moved up in-house again,

and then three years ago we bought the house that we're in now, and we just paid off the mortgage. So how did you find this weird group of people who don't want to owe anybody any money? It started when our daughter Dagny was born, so about eight and a half years ago, I came home from work to be the primary at-home parent. And I found Dave Ramsey on the radio. And I heard somebody else doing their debt-free scream. Made me tear up because it was emotional. It was moving. And then when Nicole came home from a trip, I started

tuning in on a daily basis. I said, hey, why don't you give this program a listen? And it made perfect sense. It really clicked. So, Nicole, you get home. You drop your bags. You crash down on the couch, and Jackson says, I got an idea. I got an idea. Walk me through how that conversation went.

I think I just started listening to him. And I think we always were like we really always paid cash for everything. But just to focus on something and get it over with was where the program came in. So who was key to helping you walk this journey? Who helped you? That's a good question. I don't think we had anybody outside of our marriage that really helped us and lifted us up and super encouraged us. I think the course of the debt-free journey for us in the last eight and a half years, we've really lifted each other up and it's super strengthened our marriage. We're in a great spot.

I think everyone listening to you all today, but well, okay, that's easy. They're making, you know, 200 something plus thousand dollars. She's a pilot, which is great. He's doing this, but I know it wasn't easy. All eight years. Give us one thing that kind of did challenge you all. That was kind of like, okay, how do we get through this? Or maybe we should hold off here. Like, what was that thing that America can hear you say?

This was our challenge and this is how we got through it. I think for me, it's seeing what other people have, but you really don't know their story on how they achieved it. You don't know if they did pay it off or they just up to their eyeballs in debt. So you just really have to really have gratitude for what you have and appreciate it. And then just keep, keep chugging away. I love it. I love it. So what's it feel like to be debt free? have and appreciate it and then just keep chugging away. I love it. I love it.

So what's it feel like to be debt free? With the pandemic happening this year and we waited a few months into the pandemic to finally pull the trigger and pay off the mortgage, it is a weight off of our shoulders. Wow. It is. Even if I did lose my job now, like last time, we're all set. Well, you're a pilot, so you will always have a job somewhere. Hopefully. Hopefully.

You're a pilot. And you're a fireman. There's always something to write. Always work available. That's right. So what are you going to do now that you're free? Whatever we want. Oh, what a great answer. New kitchen. We're saving up for the kitchen. Oh, man. I wish you could see. If you're not watching them, he smiles and says, whatever I want. We're saving up for the kitchen. Oh, man. I wish you could see if you're not watching them.

He smiles and says, whatever I want. And she clenches her fist and says, we're getting a kitchen. That's fantastic. Yep. Awesome. The kitchen was predetermined. That's correct. Excellent.

So you've got two beautiful little ones over here. Who are these good folks? This is our daughter, Dagny, and our son, Theodore. Oh, you guys are going to be in a mess with both of them. Beautiful, beautiful. And so I don't want you all to miss this. You have changed not only your future, but you've changed the sidewalks that they will walk on forever.

That's right. Because every dollar you bring into the house from this point forward is about building future stuff that's not cleaning up past mess, right? That's true. And it's not only the dollars that we're bringing into the house from this point forward is about building future stuff that's not cleaning up past mess right that's true and it's not only the dollars that we're bringing into the house these two have started their own successful business in the middle of a worldwide pandemic yes what are they working on they are selling um organic raw honey campfire wood and maple syrup and they have set their own spending and saving goals and they've been giving generously along the way as well.

Wow. So you've not only changed their financial future, you have changed their hearts and their minds and the way they live. Yep. It's true. I have nothing to say. Why are you looking at me? I love seeing a changed legacy.

I love it. I love it. I'm just looking at the kids and I'm like, their future is brighter because of the work that you all did. And I'm very big on legacy. And their kids are going to be impacted because of the decision that you all made. So I'm just super excited. I really am. Beautiful.

So we have a copy of Chris Hogan's book for you, Everyday Millionaires, because that's the next chapter in your life. And these two, we'll get them a copy too. All right, Jackson and Nicole and Dagny and Teddy, you paid off $265,000 in 36 months, making $170,000 to $250,000 a year. Let's hear a debt-free scream. Ready? Three,000 a year. Let's hear a debt-free scream. Ready? Ready? Three, two, one. We're debt-free!

Woo! I love it. And if you're not watching it, you can't see they're smiling from ear to ear to ear. We've got folks who work here who come out every single time, Anthony, to watch this because it never gets old. It never does, man. And you know what? I am.

I just when I look at them, I look at their kids and I look at their faces and I'm like, wow, their faces will always light up because of the choices that their parents make. And it's like and I just pray, America that you all are listening and you're getting inspired that the caliber of your future and the caliber of your kids future are also depending on the choices that we all make right now. Whether you're single and you don't have kids right now, the decision that you made today will impact them tomorrow. And I want you to think about your kids future. I want you to think about leaving them with a legacy,

with wealth, with wisdom, with joy, not bills and benefits. And when I look at them too, I'm like, wow, that's what that looks like. And when the next pandemic hits, which it will, the next crash, the next illness, the next whatever, when it hits, they've grown the hearts and minds of two young kids. They're going to know

brother, sister this is when we roll our sleeves up and get to work. But you know what though too? They probably won't even like debt. They won't even be like, what's debt? I mean, she's so smart. She can be like, yo, you can't date me unless you have no debt. And he's like, you can't date me unless you have a cooler haircut

than me, right? I love it. This is the Dave Ramsey Show. We'll see you next time. 2020 is exhausting, but here's some good news. 2021 is around the corner. No matter the circumstances, you can still have your goals and dreams. We just heard from a family who has been working on their dreams for years, and we've got two little kids already setting after their goals and dreams. That's why number one best-selling author Christy Wright, Anthony, our office mate,

created her all-new 2021 Goal Planner to help you grow and focus on what really matters to you. And you could ask, it's October. Why are you already talking about 2021? Here's why. Holidays don't sneak up on us, Anthony. They really don't, bro. They really don't. Same month every year. Christmas is coming up, and my birthday has already passed.

It's already passed. So start planning for those you're going to buy. Start budgeting for Christmas gifts. Don't let them sneak up on you. This planner will help you manage your schedule, grow as a person, and crush your goals, whether you're focused on your spiritual, personal, money, or work growth. Having this planner is like having Christy as your personal coach, cheering and guiding you on. As somebody who has been cheered on by Christy, it is awesome. Yes. In this planner, Christy helps you set and complete reasonable and meaningful

goals, challenges you to celebrate the little wins along the way, and reminds you to pause and see what God is teaching you in the moment. Best part is, you also get a 2021 goal worksheet that you would start filling out today. You can start planning for next year right now. Get the new 2021 goal planner today in our online store at DaveRamsey.com, and you'll get our goal-setting gift pack for free, which costs over $30. You might want to hurry. They're selling out fast.

Yes, they are. Fantastic, our good friend, Christy. All right, let's go to Hannah in San Antonio. Hannah, how are we doing? I'm doing well. Thank you, gentlemen, for your time. Thank you for calling. How can we help?

Okay, so I started this a week ago. Uh, I am on baby steps too. I just want to make sure that I'm putting my money in the right order in the right places. A little nervous. Um, but also I have a 13, 17 and nearly 20 year old. And I want to make sure that at the same time that I'm learning that I'm teaching them how to do this better because I don't want to make sure that at the same time that I'm learning that I'm teaching them how to do this better because I don't want to pass on the lessons to them that were passed on to me Hannah can we just pause right there and on behalf of all of the moms across America Anthony and I from Nashville Tennessee are high-fiving you there in San Antonio next to the Alamo for saying no more we've already had a loss on this site, and we're not doing it anymore.

And Hannah is turning the corner not only in her own heart and mind but in the lives of her kids. Good for you, Hannah. Good for you. Where'd you find us? Where'd you meet us? You know, I'd heard of Dave Ramsey at Singham on TV growing up, but I really just wanted to pay off the debt that I have,

and I just started looking at different ways to do it. And honestly, Pinterest is full of debt snowball. So instead of taking other people's, I went straight to the source and started looking. I already have the trial for the Dave Ramsey Plus. I'm just not sure what I'm supposed to buy to move forward and where I'm supposed to put my money in this step first. Yeah. Yeah. How much debt are you paying off right now, Hannah? So I have outside of my house, I have $40,000 in debt. Okay. Okay. Okay. $7,000 of that is for a family debt. So it's non-urgent zero that does need to get paid, and I have a 21-6 that I owe on a car. Okay. What kind of car is it?

It is a 2017 GMC Terrain Denali. Okay. How much is it worth? It is worth about $23,000. Okay, so you owe $21,000, and it's worth about $23,000? Yeah. I've had it for about nine months. My car got totaled, and I didn't have a choice.

Okay, cool. How much money do you have in your savings right now? I have $15,000 in my savings. $15,000 in your savings. All right. And what's your annual income? Before tax, it's $119,000. Okay, so before tax, $119,000. So you're doing good, especially in San Antonio, Texas.

All right. So you have a couple options here. Yeah, so let's answer this question. You said, how do I teach my kids as you're paying off debt? You're teaching them now. Okay. You are accepting the responsibility to say, you know what? I need to change my life. One of our good friends, Rachel Cruz, she says, when it comes to our kids, more is caught than taught. So I really wouldn't focus too much on sitting down and per se teaching them things. No, you need to actually be showing them things, getting them involved with things.

And so especially for like your 20 year old and your other teen, when you start doing your budget, bring them around. Sit there, butt at the table with you. Bring them around. So you know what, you got $500 a month coming in. You're going to budget that $500 a month. This is going to list your income. You're going to list all your expenses. You're going to do a zero-based budget.

Make sure that they're involved with the process as well, but on their level, so that way they can start practicing what they're seeing. They can start duplicating what they're seeing and it becomes a second habit for them while you're making that your first habit for yourself. And so more is caught than taught.

And then also from there, teach them that, hey, as you're getting older and you're making these responsibilities, you need to avoid debt. Because look at your mom. Okay. I'm tired of living the way I'm living. I want more freedom. I want more peace. And so if you all do this now, you will definitely avoid the mistakes that I made. But that's from that practical perspective of don't really focus so much on teaching and preaching at them.

No, get them to get involved and go on this ride with you. Hey, Hannah, I want to do a quick exercise with you. Run through those numbers with me again real quick. You owe $40,000 in debt outside of your house. How much do you have in savings right now? $15,000. $15,000. You've got a Denali worth $23,000 that you still owe $21,600 on, right?

Yes. Okay. And you've got $7,000 that you owe your family, right? Yes, of the $40,000. What's the rest of it? Let me pull up my Snowball app. Your Snowball app. Look at you.

She's all in, Anthony. Yeah, she really is. She got a debt tracker. So I have, my husband has a couple of credit cards. So there's about $1,500 in credit card debt. There is $4,000 that's owed to a tax consultant. Oh, another $4,000 in credit credit. Sorry.

And about $200 to an attorney that we're just about to pay off and another $4,000 to an attorney for a child custody case. That's almost paid off. And your 119 income, was that household income or was that your income?

That is my husband's income. I'm on disability. Okay, cool. So that's included. The disability on disability. Okay, cool. So that's included. The disability is included in that. Cool. I want you to take that $14,000 of that dollars, and I want you to start knocking out some of these debts today.

And by tonight, by the time you go to bed, you can have knocked off a number of these smaller debts on your way up. I want you to sit down with your husband and have a hard conversation about how important is the Denali right now? That's a fancy pants car. But also, can you get by with a good Camry? Can you get by with a good Accord?

I know you make a good amount of money. And so the dollar amount's less. But man, you can be out of debt here quick and possibly quicker than you think you could if you all put your head together and get to cracking on this. Yeah, $40,000 is not a lot. So I would definitely have the conversation with the husband on, can we do this? It sounds like they have a big family. It sounds like they do need a bigger vehicle.

So with $40,000, with a six-figure income, if they want to sell the car, great. That's a great way to get out of it. If they don't, grind it up and get it paid off quick, right? And if you don't, I'm not upset about that because with this car, great. That's a great way to get out of it. If they don't, grind it up and get it paid off quick, right? And if you don't, I'm not upset about that because with this income, if you get on a clear budget and you cut out some of your excessive items, like if you have Netflix and Hulu, if you have Spotify and Apple Music, if you have Disney+, if you have these extra things, how do we cut back on this budget so we can get done with this

within the next 12 to 18 months let's get done let's get done all right let's take one more quick call let's go to dylan in sarasota florida dylan get straight to your question here all righty um first thank you so much for taking my call it's a pleasure to speak with you both um so i'm in a little bit of a disagreement with my wife and her family. We were driving to Michigan. We drove through Nashville. I made a joke saying we were in Nashville. We should go see Dave. And they all kind of lost their minds because they know I'm trying to, you know, pay off our truck.

They think that I'm a little, you know, psychotic for wanting to cut off my credit card. They told me I need to have a credit score, and I'm trying to zero out my credit score. You're right. You are psychotic. And you're right that you are a little bit crazy. When you choose to not owe people money, people are going to look at you weird. When you choose to have no baggage, people are going to look at you weird. Choose to be weird.

Choose to be different. Right, Anthony? Right. There we go. Thank you for joining us. This is The Dave Ramsey Show. This is James Childs, producer of The Dave Ramsey Show. You can listen to Dave, Rachel Cruz, Chris Hogan, or the rest of the Ramsey Network anywhere

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