The Ramsey Show - App - Your Life Will Suck if You Wait on Washington To Fix It (Hour 1)

Episode Date: May 23, 2024

Live from the headquarters of Ramsey Solutions, it's the Ramsey Show, where we help people build wealth, do work that they love, and create actual amazing relationships. Jade Walsh, all Ramsey personality, number one bestselling author of the book Money's Not a Math Problem. It's one of our quick reads, a whole 74 pages long, so you can take care of it in one setting, and you will change your life if you read that kind of stuff. She's my co-host today. Open phones at 888-825-5225. Jennifer's in Pittsburgh to start this hour.

Hi, Jennifer. Welcome to The Ramsey Show. Hi, Dave. It's wonderful to speak to you. You too. What's up in your world? Well, we are recent graduates of FPU, and we have a debate in our household. We have $42,000 worth of consumer debt, and our mortgage is $69,000.

So the whole $42,000 is all my student left. Right now, I am waiting on a public service loan forgiveness application. All of this documentation is temporarily paused while the government changes the servicer from Mojila to U.S. Department of Education. But when I applied, the website says that I have $24,641 eligible for forgiveness. So, as you know, if I die first, the student loan is forgiven. Also, if we pay towards this $24,000 that's eligible for forgiveness, that money is gone and could have been used to pay down the mortgage. So that's my husband's case.

So in our case, is it okay to go out of order and start tackling this mortgage while we're waiting on the application to be processed? So you owe $40, but $24 is possibly forgiven. What would be wrong with paying it down to $24? Well, there's nothing wrong with that idea. I'm on board with that. Oh, but he wants to pay the mortgage instead. He wants to pay the mortgage instead because he's planning your death.

Okay. Yeah. Okay. I hope not well it's what you said how old are you guys uh 51 how old is this debt um it is about 10 years old and and what is your household income uh 168 okay how long are you willing to wait for the government to tell you that they're not going to forgive this? I mean, they're going to forgive this. I think you're right the first time, Dave. I mean, so, right, historically speaking, yes, but every day on the news, we have the Biden administration forgiving more debt. Wait a minute, wait a minute, wait a minute, wait a minute.

Did you just tell me you believe the news? Worse than that, did you tell me you believe the Biden administration? So let's move on. Let's go back to the original argument. Okay. Now, what's your household income? $168,000. Okay. So you only have $100,000 in debt. You make $168,000. So you should be, both of these should be gone very quickly. Agreed? Agreed. So we're really not arguing about anything but four months? Right. It's just kind of like the order of operations.

Four months? It doesn't matter. It doesn't matter. Four months. So how long are you going to wait before you say, I give up on student loan forgiveness and I'm going to pay it off? Okay. I'm asking, how many months are you willing to wait? Here's my honest answer.

The website is saying it's going to take until July of this year. So I can hold off until July of this year. Okay. So let's give you until September. Okay. Because it doesn't matter, okay? Because you could go and pay down the loan first from $40 to $24, and then you could reach over and pay off the mortgage

if you wanted to let the $24 sit there for a couple of months. But don't let it sit there one day longer than when you're ready to actually get to it so i want you to plow through all of this 100 000 out of 168 you should be done in 18 months okay okay and so if we put the 24 at the back of the 18 months and plow through down to 24 first and then through the mortgage we're really not having a discussion here about the some it's a theoretical concept because it's all going to be gone by the time you blink so your husband's it's ridiculous to even have this conversation do it in the correct order pay it down to the 24 and then pay off the

mortgage and then but when the mortgage is gone if it's if there's if you've not gotten the forgiveness pay it off okay and do it in 18 months and do it in 18 months so really when you when you couch it in that order whether we put the the 24 the 40 whatever in front of the 69 it we're arguing about four or five months difference is all so it's a non-issue hey do you have a chunk of money saved somewhere no we don't we have our thousand dollar emergency we're just maybe step two and then yeah so you're doing everything else on the on the plan till you got to this correct okay okay good all right well i'll i mean i'll give you a shot at getting the forgiveness i don't think it's going to happen because the numbers are horrendous it's like

three percent of the people that apply for forgiveness actually get it yeah so when biden comes out and says he gave forgive 7.7 billion dollars it's absolute statistical hogwash it's a political move because he didn't he made it available to them but then when they go to the education department to get the forgiveness it's not actually happening i mean it's like you have a three percent chance of getting student loan forgiveness not to mention what it has you know under under those programs it's just the actual facts and i it's not a political thing you can make it a political thing but those are stupid politicians. But they're promising you crap they're not going to give you. That's the oldest game in the business, right?

So anyway, put it at the end of the thing. Give it a shot. Maybe I'm wrong. Maybe you did it just right. Maybe you're one of the ones that sneaks through and gets free 24 grand. I'm not opposed to you getting the money. So go get it. But don't sit

around five years from now and go I'm still waiting on a promise of a politician yeah a lot of what's been forgiven is really old you've been paying you did your payment plan it's long since been finished and you never got your payout yeah so that's how I would handle your situation and you're you're you guys are thinking about it. But sometimes it helps me, folks, when I'm looking at this stuff, that the argument we're actually having is very theoretical. When you actually break it down by the dollar differences or the time differences, it's an irrelevant amount of time or an irrelevant amount of dollars.

Just do it. It's not a big deal. So if you want to do it his way or you want to do it yeah yeah you know it's not it's not a big deal okay so if you want to do it his way it's it's or you want to do it your way in 18 months you're done it's gone you're done either way and so the you know which one we put in front whoopty doopty as long as you freaking do it now moving on the other thing folks when these articles come out from the trump administration or the biden administration or somebody that claims to be an administration and they tell you that they are responsible for seven the last one 7.7 billion of debt forgiveness you need to read the article because actually that particular this latest pr push in an election year if you actually read the article

he it wasn't a new program all he did was take credit for what was already in place it was the program is already there that they're not executing already yeah and the act he held it up look what i did you didn't do anything it was already there yeah you just you just put it out in the spotlight and act like you did it. And that's not a political thing. It's just how these twerps in Washington, D.C. do stuff. So don't let Trump or Biden take credit for your life. And don't wait around on either one of them to fix your life because your life's going to suck if you do. This is The Ramsey Show.

Jade Walsh, our Ramsey personality, is my co-host well it's graduation season lots of people coming out of high school coming out of college coming out of whatever so before you stick a crisp 100 bill which is always welcome by the way inside a graduation card uh why not give somebody the tools you wish you had you know you could get uh george camels breaking free from broke this is the millennial and gen z snarky well-researched version of what we teach and it's really really good and uh it's selling like crazy especially among the age group of newly graduated folk. Breaking Free from Broke, The Ultimate Guide to More Money, Less Stress. And George is the king of snark.

That's one of the reasons I just love reading his stuff and hanging out with him. Ken Coleman just hit the bestseller list with this, the Get Clear Assessment. Find the work you're wired to do. Wouldn't you think it'd be cool to get an assessment on what you're wired to do? Absolutely. Especially if you're coming out of college or out of high school, that would be a cool thing. The assessment is included in here. About 100,000 folks have taken the assessment by just buying it off of our website. So that's why we put out the book on how to actually read and analyze the answers and the results of the assessment. And it's not a super lengthy thing, but it's very engaging and really, really helpful.

Helps you figure out, you know, what you're good at, what you enjoy, narrow your job search down, all that kind of stuff. And we are now celebrating the 20th anniversary of the Total Money Makeover. And so the Total Money Makeover has had yet another makeover. There you go. So there we go. And, of course, number one best-selling, gosh, over gosh over a thousand weeks it's been on the bestseller list now pretty crazy 10 million of these puppies sold not a bad graduation gift there uh you could add jade's

book in there money's not a math problem somebody doesn't want to read a bunch of 74 pages it'll get right to the point and have a little Jade attitude in there, and that'll help you, too. So just put all of that in the pile. Go to RamseySolutions.com, and that'll be a whole lot better than, well, it'll be the kind of stuff you wish you had read when you graduated, boys and girls. That's how that works. Andy is in El Paso. Hi, Andy. Welcome to the Ramsey Show. Hi, Dave and Jade. How are you guys today? Better than we deserve. what's up in your world

um so honored to be speaking to both of you i'm a huge fan of the show thank you um so uh no well thank you guys uh so i'll get straight to my question and i can provide more more detail as needed uh so my overall question is uh should i remain with the company that I currently work for as a remote employee, or should I start looking for a new position? So currently, I am a CPA, and the CEO of the company that I work for recently announced that they want to shift to more in-office positions, but they have not yet mentioned what they plan on doing to the several employees that are 100% remote scattered throughout the country. And the company I work for is in Iowa, while I am located here in Texas. Okay, so if you don't move, you're going to lose that job if he pulls everybody in. Is that what you're saying? Yes, correct. Yeah, at the moment,

my wife and I i we don't have any intentions of of leaving el paso wouldn't blame me on that for sure to go to a pretty cool place yeah so um all right so i guess you're looking for a job to the extent that you think you're going to lose that one agreed yeah yeah exactly i believe so but i guess i'm just kind of you know i don't want to jump jump ship too soon when, you know, they haven't provided much more detail, but then I also kind of don't want to wait around. How long have you been doing this remote? For almost two years now. So the job since you took it has been remote?

Yes, correct, yes. I was hired. They don't have any offices in El Paso, never did. No, correct. Yes, I was hired. They don't have any offices in El Paso, never did. No, correct. Okay, so they hired you remote, and the only question you've got is, are they going to keep the people that aren't? So we don't know, could he be talking about the people that are in proximity to an office, need to come back to the office, and the rest of you stay remote? That wouldn't be that unusual today.

Correct, yeah, and that's kind of what I'm hoping for. But again, you know, they've been kind of just tiptoeing around the topic. What would happen if you asked? What would happen if you just asked your, you know, your leader? Right, yes. I have not had the opportunity to ask my direct boss yet, just because this was pretty recently and you know we'll probably have that conversation pretty soon and uh my boss is over there in in

the headquarters so uh i know they'll have their ear more closer to the ground to kind of sniff out any news but uh so i haven't had that conversation yet but i do yeah if i were your boss i would not be offended at all if you called me in the next 20 minutes as soon as you hang up from us which is what you should do and you said hey i saw this thing um i really like what i'm doing and i want to know if this means you guys are going to fire me right correct i wouldn't be offended i wouldn't be offended. I wouldn't be offended. You're asking for clarification on a vague corporate communication crappy announcement. And I might even, like what Dave said is pretty direct, like are y'all going to fire me? I might just ask, hey, what's the expectation going to be?

Is the expectation that all of us at some point come to office here in Iowa? Is that going to be the expectation? I'm just, just so I can plan. I mean, you don't necessarily have to say what exactly you're planning on doing but yeah just you should be on the phone in the next 30 minutes and get some clarification and if you can't get clarification that would worry me greatly non-clarification from corporate goobers means they're getting ready to screw you right that's what that means i guess right so but if you talk to it if you talk to him and he does a politician's dance go get a job because it's coming okay but if you talk to him and he

goes hey man we're just talking about the people in the neighborhood here they don't need to be living 20 minutes from the office and not coming in but you're in el paso we don't have an office in el paso we're gonna be leaving you alone okay cool worry over you need instead of sitting and stewing over this make a phone call man yeah but yeah that that's you know and then figure out what your situation is and uh but to the extent that your probability of losing the job means you need to look for a job yeah the more i become convinced i'm gonna be on street, the faster and more intense my job search, I'm going to be reading everything Ken Coleman writes and getting out the proximity principle

and paycheck to purpose. And I'm going to figure out what I'm going to do with the rest of my life. And it's not going to be these goobs. Yeah. And for me, there was just a little something that I read into that going, if you don't feel comfortable talking to your leader, there's something else there that's kind of strange. It's the problem with remote. You don't have good connection. You don't have high quality relationships. You've got a Zoom call, you know, or worse than that, a freaking email, you know, and so it's hard to communicate with people when you're not in, you know, 80% of communication is body language and tone.

None of that happens in an email or a text and it happens poorly in a zoom call and this is the problem with remoting so but it's not it doesn't it doesn't mean you have to stop doing it but you just need to dig to push through the problem you know get let's meet the challenge head on and find out what the flip is going on here jake is in fort my, Florida. Hey, Jake, what's up? Hey there. Thank you for taking my call. I appreciate it. Sure. How can I help? So I have a question for you. Um, my wife and I, you know, we didn't have a 28 to three comeback story like yours. Um, but we're definitely in the midst of one. Um, we got married last year, um, in 2023, prior to that in 2022, we were living together and we had a cash flow problem. We could barely afford, we could pay for our rent and pay for living expenses, but we had

relatively no savings to put away. Ever since then, we got out between now and between then and now, we got out of that lease, moved home. We were lucky and fortunate enough to be able to move home with our parents. Saved up there. We got married. And now we're living at a totally different place, and we're, you know, through a lot of risk-taking through our jobs. Okay, so where are we today? What's your question?

The question is, I don't know if I'm ready to buy a house or I need a second car. How much money do you have piled up now after this turnaround? My wife and I have stashed away approximately $116,000. Very cool. Why don't you do both? Buy a $10,000 car and then put a down payment on a house. You got enough. Yeah. It's a little bit more complicated.

Is all the debt gone? Yeah, I just paid off the one car that we have. Yeah, $14,000, I took that away. What's complicated, dude? You got the money to do it. You turned it around. You probably got your confidence shaken by being stuck in the mother-in-law's basement for a while you know but hey you know go get your house man or go get a rental but buy a $10,000 car for

sure this is the Ramsey show Jade Walsh all Ramsey personality is my co-host. Thank you for hanging out with us, America. Christine is in Atlanta. Hi, Christine. How are you? I'm doing great, Dave. Thank you so much for taking my call. Sure. What's up in your world? Well, I feel like I should have been listening to you a long time ago.

So my husband passed away of COVID three years ago, almost, not quite. I'm sorry. And he had a little bit, a little bit of life insurance policy. And I panicked and I went ahead and paid my house off. It was like $225,000 left and I used it all. And I'm like concerned that I made a mistake by doing that because I went to my friend's financial guide. He's like, you're so far behind at 55 or what you should be.

And he made me feel stupid for doing that. And then I started watching you and you are, you're all about the house payoff. I was like, good with that. But then you do talk about how your income is your wealth building thing, you know. And so anyway, I'm a realtor and I have just had a slow down screeching halt on sales. And I'm just afraid any, you know, what I've got left in savings, I'm going to have to start using that to supplement. Well, what would that's where I'm just afraid any, you know, what I've got left in savings, I'm going to have to start using that to supplement. Well, what would, that's where I'm at. First off, I'm sorry for your loss. That sounds terrible. Second off, this financial guy is, is not the guy. No one should be making you

feel stupid, right? Yeah. No one, you know, you're going to them for advice. You want to learn, but they shouldn't be making you feel stupid. I would not look at this as a big mistake. I would go, okay, it's not like you went out and bought something you couldn't afford, or it's not like you went out and got crazy. You paid off your home, which is something that we would teach you to do. Yeah, you may have gone a little bit out of order, but maybe not. I mean, let's think through this. Do you have any other debt?

No. Okay. of order but maybe not I mean let's think through this do you have any other debt no okay do you have any money set aside that you could call just savings that's liquid yes so I have what's left like that we you know work together to build like I have 300,000 in a high yield account but after listening to Dave you're like excellent, but like high yield accounts aren't the way you build money. Like I hear Dave, you say that all the time. So I've got that. And then I've got, I don't understand the, um, the, I've got a rollover. There's something called a rollover that I've got and a, and a Roth and then a beneficiary. And all of that adds up to be about $140,000, $145,000. But here's the bottom line, okay?

You don't have any bills. Your income is slowed down. And you have $300,000 that you can eat out of until you get your income back up. Right? Right. You're doing better than you think you are. Christine, you're okay am i okay i feel panicked why are you gonna how long is it gonna take you to burn 300 grand and you're not

gonna burn 300 grand i mean it take you 10 years to burn 300 grand because you're not you're not supplementing this to the tune of eight thousand dollars a month you don't i know you're not just by listening to me i mean you take a thousand here a thousand there to make sure you got food coming in till the real estate business picks back up right right right i guess i've just been not sleeping at night ever since talking to that guy like why well that guy let me help you with that guy okay here's two words for him you're fired now who's stupid okay so um so yeah because he's an idiot you don't need to talk to him anymore okay he's a classic financial guy who's a nerd and has zero relational capabilities so um you need to go if you want some help click on smart investor at ramsey solutions they will

not have that approach they'll have the heart of a teacher because the more you understand, the less anxiety you'll have. The more knowledge you have, the less anxiety you have. But let's just take a real basic, simple thing from the sixth grade, okay? How much are you taking out of your high-yield savings account to pay bills with right now while things are slow per month? Well, nothing so far. Okay, so really really what are we worrying

about well i guess like i don't know i guess i just after talking to him i just okay you gotta quit saying after talking to him because he just threw you in he does not count okay i want you to count on you for a minute you just use your brain brain. Your brain's fine. You don't have a broken brain, okay? So your brain says, I haven't used any of the 300 grand. If I started taking 2,000 a month out, it would last me for 150 months if it made no interest. You know how long that is? 12, 14 years. Right're okay okay you're okay you you have such a big stinking pad that there's nothing you're gonna do that's

gonna screw this up okay you have no house payment unless you go blowing unless you go blowing 100 grand a year somewhere and burn through this money in three years and don't work, you're okay. And you're not that person, okay? So you need to stop it with the anxiety. You're very capable. You're smarter than the guy you met with. You probably have more money than the guy you met with. Do you have kids at home, Christine?

No, unfortunately, we did not. Just a four-legged one. Okay, four-legged. Four-legged kids count. They're-legged. Four-legged. Kids count. What I would do if I were you. More expensive than the others, but yeah. All right.

So, yeah, you need to get somebody in your corner that is the heart of a teacher. That's our SmartVestor Pros. Sit down with them. They'll help you with how the rollover works, how the Roth works, and how the beneficiary position works. You need to understand those three things because you feel confused, and it made you feel like the guy was right when he made you feel stupid and you're not stupid you're just don't know something i'm not stupid but i can't work on my new car when i lift the hood on it i have no idea what i'm looking at looks like a spaceship okay but i'm not stupid i just don't know how to do that and if i have a

mechanic that tries to make me feel stupid he's fired it's not his job his job's to fix the car right not not assess my car fixing abilities so no you did the right thing by paying off your house i think you've been very wise and very conservative the only thing i want you to do is to engage the knowledge gathering process here to get your confidence up because the more confidence you have the less anxiety you're going to have the better sleep you're going to have the more real estate you're going to sell because a salesperson who thinks they're broke smells bad right so would you use some of that money into like the 300 would i should i put that into like i've been i'm probably going to move some of that into something other than a high yield but only after

you understand it and only after you realize and internalize and you're as dr john deloney says your body recognizes that you're okay because your body thinks you're gonna die and it's freaking out yes it you're exactly right and that's just due to this guy's speaking shame over you yes okay and so i just i rebuke i rebuke that okay it's just bull crap it's just bull you're not that you're not that girl you're not a dumb girl he was saying that it was like a low interest rate why would you do that and i guess that's what i wake up at the night he's wrong about okay i i might invest some of it for that reason but it has i'm not ever going to do anything after this phone call if i'm you because of that guy right he's completely invalid he invalidated his position he invalidated his opinion he invalidated

his relationship he's fired for god's sakes don't let him have any more free rent in your head yeah because he's somewhere eating a sandwich you're here calling us and worried to death over for God's sakes don't let him have any more free rent in your head yeah cuz he's somewhere eating a sandwich you're here calling us and worried to death over what he said and he's out to lunch he was out to lunch when he met with you yeah hey why do you think that is Dave like you know obviously we have really great smart fester because they have the are academically trained math nerds, we look at the math and we are aghast if someone didn't do the math right. And we think everyone should be able to understand it instantly the way we math nerds understand it. And so we're just like, oh, God, you're an idiot.

You know, and it's how our stupid, non-relational math nerd brains work. And he shouldn't be in the business he's in because he's in the wrong business because he's bad at it. His job is to coach. His job is to inspire. His job is to teach, not to shame. And so he's a rookie or he's an idiot or both. This is The Ramsey Show.

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James is on the line. What's up, James? Hey, Dave. I'll be 64 in August. I'm still working. I'm retired from the military, so I get up in military retirement. Thanks for your service. You're welcome.

Thank you. And I'm going to start the baby step one tomorrow. This is how far behind I am. I have about $102,000 in debt other than the house. Me and my wife together make about $140,000 a year. And here's my main question I wanted to ask you. I've only been listening to your show for about a week now. My son turned me on to you years ago, but I didn't pay attention.

I wish I had. I thought I'm an idiot but anyway uh i have 9 500 in a stock from the company i work for i work for a food service company and their stock i have 9 500 in that and i have 16 000 in a 401k my is, and this is my logic, if I draw that out, I can pay all my debts off except for the house, the two cars, and one other deal that you're not going to like. So what do I need to do with that 401k? Well, you're going to need that 401k later

because we need to build you a nest egg to retire with after we get you out of debt, agreed? So I would not to need that 401k later because we need to build you a nest egg to retire with after we get you out of debt. Agreed? So I would not cash out that 401k. I'd let that ride. I would cash out that stock. And what we're going to tell you to do is list your debts, smallest to largest. You said you had $100,000 in debt, right?

Yeah, about $102,000. Right. And how much of that's your mortgage? None of that's my mortgage. Oh. That's without my mortgage. My mortgage is... I thought you said you had $14,000 in a 401k and $9,500.

My God, what do you owe on your cars? That's a problem. My truck, I just bought it. It's brand new. I owe about $45,000 on it. Yeah. Sell it. Yeah.

Yeah, I'm not kidding. What else? What's the other car? My wife's car is a RAV4. I think we owe her like $12,000 on that. That's not a problem. That's fine. That's not a problem.

$18,000. Yeah. Half of your debt is the mistake you just made uh a timeshare yeah no half your debt's a truck okay yeah yeah how much do you own the stupid timeshare 29 000 yeah and you got screwed on that that's legalized fraud oh yeah oh yeah i just i just listened to you this morning on a previous podcast i talked about that yeah i'm sorry yeah so hey man i'll help you you can still do this it's not too late but you're gonna have to pay a lot of attention and you cannot make big mistakes so you're gonna have to undo the truck

and i don't know how you're gonna get out of that timeshare or if you can get out of it but i'm going to begin to negotiate with them if i'm you uh hire an attorney and try to work your way through that timesharing see if you can get out of that debt or pay it off one of the two um and then we've got to work what we call the debt snowball and that's listing your debts smallest to largest so take that 9500 worth of. We're going to throw it at some of your small debt. And James, we'll pay for you to go through Financial Peace University because I think you're ready to listen now. And we'll help you do this stuff. We'll show you exactly what to do first, what to do second, and how to do this.

But you and your wife are going to have to sit down and get very, very serious about this and say, gosh, in seven years years we've got to have this mess cleaned up and have a pile of money thing is though if they make 140 if they say okay we're going to live on 100 they take that stock that all but pays off the raft for put a couple thousand with it he gets out of that truck buy something easy in cash i wouldn't he got out of the time share then he's almost there yeah and i wouldn't put too much towards legal fees for that timeshare i mean it's 29 000 we'll knock it out and but i mean if you could pay 5 000 bucks and get out of it yeah with somebody with a good lawyer that works that stuff then maybe but the point is he can be done in a year yeah yeah if he makes the right choices here and then you

need to work on your house yeah and start piling up cash and you got seven years that's right and then you're 70 yep so it's very doable but doable, but you're not going to be driving that truck. Yeah. That truck's a problem. It's the biggest problem in the whole thing. Lucky for him, he's got his military retirement. Yeah, that's helpful, but that's part of that 140. Yeah.

I don't know what part of it. I'm just going to tear into this thing, man. I'm going to make a sprint to the finish. That's what you're doing, and you can do it we'll help you christian i'll pick up and he'll get you signed up for financial peace university we'll pay for it you and your wife both work on this stuff james and then you make the sacrifices to win and you still have time to turn this around you do not have time to half but do this you've got to do it all exactly the way we teach. If you don't do, if you don't sell a truck, I don't know how you're going to turn the corner here.

If you don't bust that timeshare in the mouth, I don't know how you're going to turn the corner here. If you and your wife aren't working the thing together, I don't know how you're going to turn the corner here. So you've got to do it. You don't have a second, third, fourth opportunity to figure this out. You've got to do it and you got to have a second, third, fourth opportunity to figure this out. You've got to do it, and you've got to do it now. But it can be done.

I'm not saying lose hope, but I am saying freaking pay attention. For real. Lean in, baby. Lean in. We'll help you. That's what we're here for. Bella's in Bozeman, Montana. Hi, Bella.

Welcome to the Ramsey Show. Hi. Thank you for having me. Sure. How can we help? So I started to be listening to your radio about two weeks ago, and I just wanted to say thank you for motivating me to hang off the debt that I have in my mom. So about one and a half years ago, I've borrowed from my mom 7,000 euros. And I've been pretty much kicking

the can and neglecting that debt for, you know, for this entire time, because, you know, it's my mom. So, so you're like, you know, there is no APRs on it. So I wasn't pressuring. It's a different type of interest when it's family. Right, exactly. But now, since i've been listening to you guys um i feel so embarrassed and i mean i've been embarrassed this entire time because um you know i i don't want her to know that i'm struggling with money but um how much you owe her bella seven thousand euros uh which is probably equivalent to about seven hundred fifty seven seven thousand euros which is probably equivalent to about seven hundred fifty seven seven thousand euros which is equivalent to seven or eight thousand dollars or eight thousand dollars yeah okay and women so she's out of the country yes

okay and what do you make what's your house income so um I think last year I made about forty thousand and I think this year it's going to be a little bit better because I've been working seven days a week and just trying to, you know. Good for you. So what will be wrong with scratching together $7,000 over the next few months and just paying her off? Why would that not work? Yeah, that's the problem because every time I put it, you know, to the side,

I have my little envelope with $1,000 inside of it for the emergency. And whenever I have leftovers, I put additional money inside of it. And there is always a couple of months there is some kind of emergency that I have to put that money. You want to know what that sounds like to me? You want to know what that sounds like, Bella? When I listen to people and they say month after month, I have unexpected costs come up. I know that they're not doing a very detailed budget. Are you using every dollar? No, I'm just writing everything on a piece of paper. All right. Well, before we get off the line with you, Christian is going to pick up and

we're going to make sure you have every dollar. And on there, you can plan and be very detailed each month about what your expenses are, and it's going to help you plan for those. And they won't be emergencies anymore. So you'll be able to keep that thousand dollars set aside and make some progress. This is The Ramsey Show. Thank you. I'll see you next time.