The Ramsey Show - App - Your Plans Sucks… I Don’t Want To Be Insulted by Your Abject Failure (Hour 1)

Episode Date: May 15, 2023

Dave Ramsey & Jade Warshaw answer your questions and discuss: "Can I be a stay-at-home mom with $240k of debt?" Why you shouldn't take your time getting out of debt, Making it as a single mom after a divorce, "Can we afford to buy a new car?" Have a question for the show? Call 888-825-5225 Weekdays from 2-5pm ET Join a Personality-led FPU class. Click here! Enter The Ramsey Cash Giveaway for a chance at $3,000! https://bit.ly/TRSgvwy Shop our bestsellers during the $10 Sale! https://bit.ly/TRS10Sale Want a plan for your money? Find out where to start: https://bit.ly/3cEP4n6 Listen to all The Ramsey Network podcasts: https://bit.ly/3GxiXm6 Interested in advertising on The Ramsey Show? https://ter.li/s64ye3 Learn more about your ad choices. https://www.megaphone.fm/adchoices Ramsey Solutions Privacy Policy

Live from the headquarters of Ramsey Solutions, broadcasting from the Pods Moving and Storage Studios, it's The Ramsey Show, where we help people build wealth, do work that they love, and create actual amazing relationships. Thank you for joining us, America. Jade Washaugh-Ramsey, personality, is my co-host today as we talk about your life and your money. It is a free call at 888-825-5225.

Thank you for being with us. Shauna is on the line in Indianapolis to start this hour. Hi, Shauna, how are you? I'm good. How are you, Dave? Better than I deserve. What's up? My question is, how would I balance wanting to be a stay-at-home mom with having some pretty crippling student loan debt? How much is your crippling student loan debt? Well, mine is $192,000. Are you a doctor or a lawyer? Doctor of pharmacy, yes, sir.

Okay, good. All right, so you can make $100,000 to $150,000 a year? Yes, sir. Okay. What about your husband? Are you married? I am. How much debt does he have? Sorry, he makes about $33,000 a year.

And how much debt does he have is he bringing to the table uh like 45 000 so to all you aspiring pharmaceutical students you need to listen to this call really carefully because shauna what you were told and what you believed was, oh, it's no problem to go $200,000 in debt to become a pharmacist because I'm going to make a lot of money. Right. Oops. Yes, oops. Now I want to be a stay-at-home mom. Yes.

And that child that made that decision that was 19 years old to go $200,000 in debt, you want to go back there and kick that child's butt now. Yes, so true. What's happening that's making you say, I want to stop what I'm doing right now and become a stay-at-home mom? Are you pregnant? Do you have a 2-year-old? What's the situation?

Yes, we have a 2-year-old, our only child so far, and we would like to have several more. What if you, okay, I'm going to tell you what I would do. If it were me, I would try to stick this out for two more years and work my butt off and get this debt cleaned up. And then I would feel peace about staying at home, expanding the family, and having a little bit more freedom there. What do you make?

Historically, yeah, somewhere in the range of $70,000 to $100,000 a year, just depending on part-time work and stuff like that. I thought Dave said between $100,000 and $200,000. I said no, between $100,000 and $150,000. So you're low on the spectrum, really. Yes, yeah. Pharm pharmacy work before the pandemic i'm sorry yeah that's okay the so the good news is you can pick up as you already know part-time pharmacy work like er work and that kind of stuff and you're probably going to have to do that uh

if your husband makes 45 000 to survive yeah average household income in america 71 000 yeah so if you want to live on 45 you're going to be at about you know you're approaching half of average i think we call that lower income what is it you want to raise three kids while you have a pharmacy degree so you're probably using that pharmacy degree for the rest of your life unless your husband gets his um in some way maybe part-time but uh unless he gets his career really geared up do you see what i'm saying yeah what's he doing now he is a like a remote sales rep what's what's the projection for him what's it looking like over the next two three years well so he's actually trained in chaplaincy but we moved to where we live now for ministry purposes so he's been you know chaplaincy but we moved to where we live now for ministry

purposes so he's been you know he hasn't been able to find a chaplain job recently so basically right now we're sitting at you know 30 30 something thousand 40 something thousand but trained as a chaplain he could make you know starting at 50 and go up from there we're just still looking into him being able to find that kind of role in this area. Yeah, I got you. Okay. Well, here's the thing. The bad news is you have to pay for the decisions of the 19-year-old you. Yes.

Mathematically, there's not any way to get out of that. I'm sorry. I wish it wasn't the case. And I'm not mad at you for that. But you really don't mathematically. The arithmetic tells us you don't have a lot of choices you're gonna work really hard and live on nothing for at least two or three more years to get this mess cleaned up agreed yeah oh yes probably many yeah more well no i think i

think you could do it in that period of time i mean if you throw you know let's consider this you think you're going to reduce your household income to about 90 at some mean if you throw you know let's consider this you think you're going to reduce your household income to about 90 at some point if you did a 30 or 40 000 part-time and he gets up to 60 so that's like five years from today does that sound right yeah and so let's live on 90 and go make 200 well that's another hundred to throw at student loans you'll be done in two two and a half three years yeah but both of y'all got to get it in gear because this is the time to do it when they're a little bitty that's right because they don't even know they don't even know yeah i kept my son's two-year-old he was gone for a week he never noticed his parents were gone now granted granted he was at mimi's house which is somewhat like heaven

but um you eat anything you want you do anything you want but um because that's the grandmother spoiling technique and so uh but yeah but aside from that i mean they really don't i'm not i'm not a child development expert but they'll live while you go crazy for a short period of time so that when they're six you can be available yeah and i think i think there's a path here that gets you there that gives you hope and it is a light at the end of the tunnel that's not an oncoming train but it involves a very intense next 24 to 36 months on both you and your husband's part in order for you to be able to go to part-time yeah and um i think you can make 30 to 40 part-time some weekend er stuff or some even evenings or whatever that won't destroy your motherhood plan

don't you yeah that definitely seems possible yeah that's your long-term play to supplement your husband's uh career goals and you know because y'all gonna have to make it it sounds like on long term on 80 90 100 somewhere in there uh because we're not gonna have your hundred unless you're working full time so right it'll be worth it that's what i can tell you shauna it's gonna be worth it if you do this now yeah i i i would go completely bananas for a short period of time to get your life back yeah to get it back from that 19 year old decision so um so moms and dads when you say oh it's okay and school counselors oh it's okay, the other thing that I've had happen is much more. She has an earnest, real thing.

But we've had a lot of other calls that weren't as sweet a situation. Right. They have a baby. The child is a tremendous special needs situation where mom literally or somebody's got to be there full time. Yeah, they don't have a choice and yet they're looking at the student loan debt that was made on the basis on the auspices oh it's okay everything's gonna be all right make a lot of money yeah well you don't know what this thing called life comes up and smacks you in the head and nobody tells people that when

they're 19 anymore so y'all need to tell these 19 year olds stop it because they may want to make different choices later and yet she has a master in her life called debt the borrower is slave to the lender man i hope she can do it she can do it in her situation but man it's not that her her situation is a lesson for america yes it is to listen to this is is The Ramsey Show. Jade Warshaw, Ramsey personality, is my co-host today. Open phones at 888-825-5225. Our question of the day comes from Neighborly, your hub for home services. Spring is here, and Neighborly can help you with your home and your yard

and keep it all in top shape with the Grounds Guys, Mosquito Joe, Lawn Pride, Molly Maid, and more. So spend time and more time enjoying your home not working on it go to neighborly.com and check out the service pros in your area this is a great company it is and today's question of the day comes from jonathan in the netherlands he says we really don't feel the necessity or the urgency to follow the beans and rice style of baby step two i can imagine that it might feel nice to have no debt and we have no intention of getting further into debt.

However, I don't feel it's worth living on rice and beans for three years to pay off $43,000 of student loans as soon as possible. As we're young, we're a young family, we're making $6,500 a month, and now we can use our income and savings to buy a second hand bigger car, make a garden, make our garden a bit nicer, and later in life, we'll have more to spare to pay off those loans anyway. What are your thoughts on this? And what would be the benefit of still following the baby steps more rigidly? That's a really good question. And you know what, Dave, I hear this a lot. I think a lot of people are like, why do I have to be so urgent? Why do I have to be so intense? And I look at it a couple of different ways. Number one, the series of steps that we follow. This is a guy, you know,

Jonathan, I don't mean any harm, but you're kind of just an ish guy, right? You're doing what you want to do. You're really not on our plan and that's fine. You don't have to be. It's your prerogative. But the way the steps work is you're doing them consecutively. And the first three, you're doing them with intensity so that you can get to the final four, which is really that wealth building area. So there's some method to this madness, but this kind of goes back to what we've talked about before. There is urgency because how many, I mean, I think about my grandmother who would say, you know, if you want to make God laugh, tell him your plans. And there is something to be said for that.

I think a lot of people just coast through because they think, hey, you know, this is my plan. If I just go out like this, it's going to go, you know, check off the boxes like that. But you really don't know what's going to come your way. You know, God willing, everything goes fine. And, you know, you'll keep that income and everything will be perfect and everybody's healthy and everything. But you don't know that.

And I think that you've got to live each day to the fullest. You've got to do the best that you can with each day that you're given. And when you've got debt, pay it off. You got $43,000 of debt and you make a fine income. It doesn't have to take you three years to pay it off you got 43 000 of debt and you make a fine income it doesn't have to take you three years to pay this off you could honestly pay it off a lot faster than that and at the end of the day it all jonathan what she's trying to say is your plan sucks it sucks it sucks because it's not going to work people have been trying to do the crap you're talking about for 50 years and it doesn't work you can't sort of kind of get out of debt and ever get out of debt it doesn't work it's just

actual that you can't find any proof text in the marketplace of someone who wanders along and lollygags and sticks with it and gets out in 10 years but plants his little garden well give me a break call the wambulance you know seriously this is ridiculous this is just somebody who doesn't want to sacrifice to win well period that but you're not going to win okay Because there's no middle ground with this. Really. Now, I've been doing this a long time. It's not just that you're not doing our stuff.

So please do not follow the baby steps. Please do not tell people you're doing Ramsey. No, he's not doing Ramsey. Because I don't want to be insulted by your abject failure. And I don't want my brand damaged by it, okay? Just because it's not going to work here's the reason Jonathan all right the thing works like this if you don't really with great intensity focus on a dramatic change in behavior where you have been going in the wrong direction you will never change

the behavior we're not asking you to live on beans and rice the rest of your life or to live in a cave and collect lint and only come out on triple coupon Thursday. But what you're doing will not actually work because it's not sustainable, because it has absolutely no energy. I just think I'm going to kind of wander. I'm going to get a nice house, and it's all going to work out. No, it's not, Jonathan. No, it's not.

Because you're going to get your freaking head taken off by life, and you're going to look up 15, 16 years into your little marriage and go, Dad, come. We are stupid people. We are still treading water. And ask all these people that are 45 and 50 years old that tried to wander out, and then they found us, and in 36 months they got out of debt,

and they do their debt-free scream. They'll tell you. They'll tell you your little plan sucks, because it does. It won't work. It's why it sucks. And when you're lukewarm like that, you say, I have no intentions of getting back into debt.

Yeah, you will. Yeah, you will. You definitely will. Because you're notkewarm like that, you say, I have no intentions of getting back into debt. Yeah, you will. Yeah, you will. You definitely will. Because you're not committed to the idea. The idea of where debt freedom will take you, which is into wealth and into a whole other realm of generosity, then you could even grasp right now is not appealing to you as much as your garden. Give me a break. will not work jonathan will not work so you can go do what you want to do but please do not associate my name with it

because i don't want to be tied to your failure and you go i tried that ramsey staff and it doesn't work no you didn't no you didn't because we know that there's a high probability you are never going to get out of debt unless you attack it like your dadgum life depends on it. You got to get so fired up and wired up that your character shifts. Your neuroplasticity moves in the way your brain works, where when you see debt, you recoil. When you pull up next to a nice car at a traffic light you now no longer go oh that's a nice car you go that fool's got payments yeah well you know he right now he's stuck in comfort his life he feels comfortable

he says i don't think there's any need to get uncomfortable to change this i'm cushy the greatest enemy to get greatest enemy of excellence is not bad things the greatest enemy of excellence is the okay yep just fine i'm okay it's just fine i'm okay that's so true dave no you're not you suck you're not okay your plan sucks yeah it's it's pitiful and it's not gonna work dead is like riding a motorcycle it's not if you crash it's not going to work. Debt is like riding a motorcycle. It's not if you crash, it's when you crash. Because you will crash. Remember that. Ooh.

Why are you going to get motorcycles? I'm just saying. It's not if, it's when. Georgian horses, you and motorcycles. Look, you won't get me on a bike. It's not a matter of if you crash, but when you crash. That's debt? They call them coma mobiles or something. Oh, gosh.

That's even worse than what I said, Dave. My wife told me I could have a motorcycle, but she wouldn't be there. So there you go. That's how that works. You and Sharon. You and Sharon. I think we have a lot in common, me and Sharon. No doubt about that.

All right. Up next is Andy in Phoenix. Hey, Andy. Welcome to the Ramsey Show. Thanks for taking my call. Sure. What's up? So I'm in Baby Step 6, which I'm like three months away from being done with.

Good. My job currently is a couple weeks starting a new rule change. They now are insisting that we all have credit cards to pay for our expenses. How were you paying for them? The company was paying for them. And so now they want you to carry debt for them? Well, wow, that's interesting. So what it is is we put it on the credit cards and then we file paperwork i know i know the corporate expense account on the person's credit card is the biggest con ever

sold to employees in american history yeah and these guys because this big old company can't handle their own credit card instead they need to get you to borrow money to travel on their behalf. Right. And when I first started Baby Step 2, I paid off $28,000 in credit cards. How much are you spending every month on it? Well, right now, the company's paying for it, but it will probably end up being right around $5,000 a month. Put $7,000 in a separate checking account, run a debit card on it, because when you're running a debit card on it and you're realizing it's your own money,

you'll never use it for anything except reimbursables. And reimbursables will always put the money back in the account, and you can travel the next month, reimburse, get the money back in the account, travel the next month, and you're not going to get burned that way. But this is a complete corporate scam. Has been for decades. This is the Ramsey Show. Thank you for joining us, America. Jade Walsh, our Ramsey personality, is my co-host today.

Stephanie is in Lubbock, Texas. Hi, Stephanie. Welcome to the Ramsey Show. Hi, Dave. Thank you for taking my call. Sure. What's up? Forgive me.

I'm nervous. It's okay. We've never lost a patient. Okay. So I'm 32 years old. I'm a single mom of a two-year-old. I'm living with my family, working as a server, trying to go back to school. I've got $22,000 saved, partially selling a vehicle. I still have one truck that's I-017-5 on it. I have student loans of $32,000. And I'm just not sure which direction to go.

How do you find yourself here? So my husband decided he didn't want to be with me anymore after my son was born six months after he was born. Wow. I'm sorry. How long were you married? Three years. You're getting child support?

Together for nine. I am, yeah. Good. Wow. I just feel bad for living with my family. I'm trying to go back. No, you don't. No, no, no, no, no, no.

You are who should be living with your family right this second. Not forever, but for a short period of time. This is called a safety net, not a hammock. Yeah, your mom and dad are good people. That's what they should do. And you should accept that right now. Because you would do that for your baby. Yeah.

So she got back on her feet. Now we've got to have a long-term plan. That's not that. But for the short term, this is a time of healing and resetting and getting getting going again so um can i ask you some practical questions so what are you receiving in child support and what are you earning about seven hundred dollars about seven hundred dollars a month um so this last term I decided to go back to school cause I didn't know what to do. I was just like, I need to be able to make more money. So I was like, um, maybe a nurse that would take a shorter time. I would rather not be a nurse. I would

rather be, I have multiple friends that are occupational therapists, but that would take like five years. So I'm kind of feel guilty for doing that i don't make that much more than nurses but um exactly so i was just like i feel guilty but in the long run i'm like okay three more years but it would give me a better family life but i'm looking i mean i'm i've got fafsa i've got the grants but after grad undergrad they don't cover you know it's like i would have to rely fully on scholarships or savings so i'm just like it's kind of up in the air it's like is that a bad decision um to do that it's not a bad decision it feels a little bit like you're doing this only for money i i like health i like science i love being in the health care world. Okay.

All right. That's good. I didn't realize that. Okay. Because, I mean, you're in a desperate situation that you've landed in, and you have to be careful. I do, when I'm in those situations, to not make decisions based on desperation because they're never good decisions.

So, you know, the question is, the way I always ask myself is way out there. So how old are you? 32. Okay, so when we're sitting with the 42-year-old Stephanie and she's doing the thing that changed her life and made her a good amount of money for her and her baby and she feels confident, secure, in control, and happy to go to work every day what is 42 year old stephanie doing i would rather be an ot okay then we need to figure out how to do that

okay and maybe a nursing degree is a step towards becoming an ot because you certainly could use a lot of that training and even the class the even the transcript to step over into ot correct i thought about that um but yeah because you need some you need some money in in 12 to 14 months you're not even going to get that with the nursing track right in 12 to 14 months i'm making that up but I mean, how long are you going to live there? That's my big question. Doesn't need to be a question. That's where your stress is coming from. Stress doesn't come from hard things. Stress comes from not knowing. Yeah. There's a lot of unknowns in this equation. So I'll tell you what I tell folks to do. And what I do is whenever there's a lot of ideas circulating in my head, I literally go in with a pen and a pad and a pen and I just start writing down the plan.

I write down a column of all my options. I write down the pros and cons and I sort it out on paper. And a lot of times it's going through, you know, one whole sheet, tearing that one off and then, you know, taking what makes sheet tearing that one off and then you know taking what makes sense from that one to the next sheet and writing that out and then before you know it you've got your step by step okay here's what i'm going to do first here's what i'm going to do second here's how much money i need for this for that because you've got a lot of big things on your plate and i think that's what's stressing you out somewhere yeah you got and you have at

least two or if not three stages at least to this plan the 42 year old's the final stage or the next to final stage you follow me but the early stage is okay how can i make more money today doing anything that is legal and moral that i'm not ashamed of today and that's the short term because you know if you suddenly doubled your income right now it would change your outlook yeah and that's just doing anything I mean even if something you never were going to do over a 10-year period of time but for now it gets the wolf away from the door and then that sets you up for building a sustainable household while you execute the long-term plan. So we'll help you with all of that.

I'm going to give you everything in sight because somebody needs to walk with you. You got hit here hard. So number one, we're going to put you through Financial Peace University. Have you ever done that yet? I have not, but I've read your book. Okay. Well, you need to go through the Financial Business University because it's the system that makes you do everything. Like, you're going to sell this truck. A 17.5 truck does not fit in your life.

It's too expensive. Okay. You need a cheap car right now because you're broke, living at home, trying to recover from a divorce with a baby. And a 17.5 truck is like rich people's stuff. You're not there yet. You're going to be there again someday. But right now, this truck is too big a problem. Because, I mean, it's got, what, a $650 payment?

About a $300. Really? $350. For 62 years? Okay. Wow. Okay, cool. Yeah.

All right. So, anyway, yeah, good. Okay. But anyway, yeah, we need to get out of that and get in the cheapest possible thing that will get you to your goals because we're not care about what we're driving right now. What we're doing right now is piling up money to go hit the goals. Okay. That's Financial Peace University.

I'm also going to give you Ken Coleman's book, From Paycheck to Purpose, and his career assessment, which is a thing that takes about 20 minutes. It's going to help guide you in your career because I'm still a little bit afraid. You like science, you like health care, but I'm not positive. I'd love for you to find a way, a path through your gifts and calling that gets you to more money faster than these long-term education plays are going to get you to. Yeah.

I don't want to wait five or six years to start playing this out. That's bothering me with the things you're proposing. I want your life to get better faster than that for you. And so we love you and we want you to win. So you hang on. We're going to give you a Ken Coleman's book. We're going to give you the assessment and We're going to give you Ken Coleman's book. We're going to give you the assessment, and we're going to give you Financial Peace University, all of the above.

Because you've got to get – boy, this is one where the career is a big deal. It is. I do feel like there's something that she can do in the short term to really change her income and to really improve that. It's not the long-term play. She's not afraid of work. No, not at all. Being a server is about as hard a work as there is.

No, but earning a little bit more is going to help her start to put all of this into clear focus and see, okay, how am I going to – because she can get out of this debt way quicker than she thinks because of the truck. And then she's going to be able to start saving up to move out and then saving up to do the education piece. I'm not worried about her current student loan debt. I didn't even spend her $22,000 yet. Yeah. Because I might want to spend that on this short-term education play to go get a couple of certifications of some kind. Absolutely. To go get a steady that's paying $40,000 or $50,000 and I can get back on my own, get me a little apartment, get started again. Then I'll start paying off that debt and start working your long-term plan.

That's right. Getting rid of that. But she's still just reeling from the emotions of this. And that makes her just a human being. Yeah. We all have that. Yeah. Ouch. She's doing great, though. She's gonna she's gonna see her way out of this. When we were broke, I used to make a list. What makes me money by Friday? And that's what I worked on. Because I had to have money by Friday. I feel that this is The Ramsey Show. You probably heard me say this if you've been listening for very long, that Ramsey did, the Ramsey research team, did the largest detailed in-depth study of millionaires ever done in north america we studied 10 167 of them in-depth very careful research methodology to where there's no question about the data point being if you disagree with the conclusions of this data you're what's known as wrong yeah we discovered the top five careers. One of these is always controversial.

Here they are. Number one career among millionaires, engineer. Number two, accountant. Number three, teacher. Number four, management. Number five, attorney. Medical doctors didn't even make the top five. They came in at number six.

Teacher, teacher, teacher, you can't be a... Listen, this is not an opinion, and it's not a feeling, and it's not an indictment of the fact that you didn't make it. I'm just telling you, of all the millionaires that we studied, the third most common occupation to appear in the research was teacher. That's just a statistical fact. It's not a statement of what you make or your friend makes. It's just the deal.

So not surprising because actually all five of those are process oriented careers. They find a proven process and they use it. Every all five of those are process oriented careers they find a proven process and they use it every all five of those and that's what it that's what building wealth is a proven process so in the best-selling book baby steps millionaires we take a deep dive into investing wealth building and busting through the barriers like lies like believing lies that keep people from becoming a millionaire so back by popular demand baby steps millionaires and almost all of our number one best-selling books are all ten dollars right now at ramsey solutions.com by the way the baby steps millionaires book number one bestseller has

the white paper of the study in the back of it as an appendix so you get the white paper with it in one deal we used to sell that separately for $10. Now the whole stink of deal is $10. So, yeah, RamseySolutions.com. Hit the store before this deal is over, and it's just about over. Roberts in Columbus, Ohio. Hey, Robert, welcome to the Ramsey Show. Hi, thank you for taking my call.

Sure, what's up? My wife and I are having a friendly discussion. We're both retired. we retired about a year ago we're having a discussion on buying a sort of expensive new versus used vehicle and

we both have valid points and I told her I would run it by day and see what he says okay i think uh so how much is the truck he says well it's not truck it's not a truck okay i thought you almost said truck okay what is it no it's a it's a lexus sports coupe uh oh sweet that's a great car i drove that car the other day that's a great car okay the uh what is it how much is it 70 or 80 no no no no we're looking it's uh lc 500 we're probably looking at about 150 000 oh you loaded it up okay wow okay that's a nice car all right and so what's your net worth

well that's a thing i think we could well afford it no what's your net worth a little over five million dollars by the car That's a thing. I think we could well afford it. No, what's your net worth? A little over $5 million. Buy the car. Okay, well, it's not a matter of buying a car. It's new versus used. Buy new. Thank you. Let me tell you how I decide that, okay?

Here's how you can tell if your emotions have caught up with your wealth you use ratios ratios all right and so you have a five million dollar net worth you're spending one hundred thousand dollars or so on a car as a ratio if you set fire to that car with no insurance and it disappeared and turned into a vapor your life doesn't even blink now you have a 4.9 million dollar net worth whoopty doopty all right that's the ratio okay now let's change it around let's say you had a 300 000 net worth right now that car goes up into a vapor. You've destroyed one-third of your net worth. That's not a ratio that's acceptable.

That's stupid. Right. That's how you use ratios, and that's how you look at it. Like, I got a buddy that makes $15 million a year. He pulled up the other day in a car that was $460,000. And I'm like, my mind can't even get around that. But it's a weird car. Oh, my God, it's fabulous.

I bet. Had a crystal ashtray. Unbelievable. Yeah. So, Robert, are you going to put ashes in that car? I know. Are you more excited that you won the argument or that you get the car? No, I'm more excited because i like being right

well that's the reason it's not my point is it's not it's not foolish yeah the amount of depreciation difference in the new or used in this car in your situation as a ratio is not foolish okay so it shouldn't even be up for discussion then yeah it's not not with your ratios again but if you pull the numbers down and tighten up those ratios right then it's different because here's the other thing you guys are highly generous people aren't you yes and so you give away a lot more than we're talking about yeah yeah a lot that's how you get to where you are yeah what'd you do for a living by the way she's in the medical field and I owned a small business that both did your understating both of those tremendously okay very well done very

well done so art of the understatement this guy yeah so i have a question that i think that folks listening would have when does i mean obviously in his case his net worth is fine like he can buy a brand new car at what point does the rule that we have here um that we say we don't want your things that go that have an engine in them we don't want them to be more than 50 percent of your take-home pay when your net worth is so large that it doesn't it doesn't even matter yeah because your take-home pay is a good gauge until you've got like but if you've got a five or ten million dollar net worth yeah now we're talking about what percentage because the reason we tell people that is you're going to lose so much value yeah so if you make seventy thousand

dollars a year and you got fifty thousand dollars where the car is sitting in the driveway you're going to be broke your whole life that's the definition of i want to be middle class my whole life it's true right and so why because fifty thousand is going to turn into twenty thousand in two years okay and you can so you're going to lose thirty thousand bucks and you make seventy you can't afford to lose30,000 and you make $70,000. You can't afford to lose $30,000 when you make $70,000. But let's say you made $70,000 but you had a $10 million net worth. Now you can afford to lose $30,000 because you're retired and you're living on almost nothing and you just chose to.

But if you've got a $5 million net worth, your income, if it's at 10%, is half a million dollars a year. That's true. You may not be using the income. It may be rolling back into the investment. You might not be cashing That's true. You may not be using the income. It may be rolling back into the investment. You might not be cashing out your retirement. You may be letting it grow. Right. But your income created by that balance sheet is larger than your income. That is true. Whether you're actually pulling that or not. Yep. So that's the thing to keep in mind. That's

why you'll reach a point that net worth supersedes that and you know the other thing that comes into this is the spiritual discussion christians should never because we all know that all christians should drive a 10 year old camry i sure hope not because that's holiness because you should never have anything nice what i don't know you should not be out you should not be out of proportion with your generosity yeah with your net worth and you know like i got a buddy of mine that's worth about three billion he's a huge believer they give away three to five hundred million a year and he's he's a known figure in the christian world business guy okay not a minister business guy and he bought a hundred and eighty thousand dollar hundred sixty thousand dollar mercedes nothing and which as a ratio is like most people buying a biscuit yeah

but these narrow-minded people that are over saved start trashing him on social media for buying a car that is a very small percentage of his world. Meanwhile, they're deeply in debt and 48,000 pounds overweight called gluttony. And yet they're managing to call out somebody else. Dave, you're getting them right now. I mean, call out somebody else. Just keep calling out somebody else. And for you snowflakes out there, everyone that disagrees with you is not a narcissist that is gaslighting you.

You're just a wuss so we'll just put that right in the whole thing there let's start with that just put that in your pipe and smoke it all mixed in there and smoke it while you're at it this is the ramsey show Hey, what's up guys? It's Jade. If you love the show and want a deeper dive on your money journey, we have a weekly newsletter that gives you trending and helpful articles and tips on following the Ramsey way. Just go to ramseysolutions.com today to sign up for our newsletter.

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