The Ramsey Show - Money Is a Tool To Create a Life You Love

Starting point is 00:00:00 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 amazing experiences. I am Rachel Cruz hosting This Hour with my good friend and best selling author, George Campbell, and co-host of the Smart Money Happy Hour. That's right. We do another podcast together. And so we are here to answer your questions.

Starting point is 00:00:34 So give us a call at triple eight, eight two five, five two two five. And we'll be talking about your life and your money. So kicking us off This Hour is Marissa in St. Louis. Hey Marissa, welcome to the show. Hi, happy to be on it. Love Smart Money Happy Hour. Thank you. You've got your two favorite hosts then. Wow. Sitting there.

Starting point is 00:00:56 You planned it right. It really is. My question is, should we get a high deductible, high premium health insurance plan or a traditional health insurance plan? My husband and I are on baby steps four, five, six and we just had our third baby in November. Oh, congratulations. So exciting. Thank you.

Starting point is 00:01:16 Are you guys relatively healthy people, would you say? For the most part, yes. Our two older kids have both had to have tubes in their ears twice. So that's not an expense to have to pay. But other than that, we're mostly healthy. Okay. Yeah, because I feel like for me, George, that's kind of how we've decided it overall. Health of the family. Yeah. I mean, that's kind of the way we've dictated it. There's kind of like a spectrum, almost a bell curve if you think about it and you go,

Starting point is 00:01:45 right, if there's a ton of health issues in the family, the high deductible health plan could be good because you'll hit your out of pocket max and it's gonna be 100% covered. And if there's very little health issues in the family, it could also be good. And if you're somewhere in between, you might wanna go with a traditional plan.

Starting point is 00:01:59 Now I have chosen to go with the high deductible health plan. I love the low premium. You guys are in baby steps four, five, six. You can take on a little more risk from the insurance company by having that higher deductible. And I love the fact that you get the high,

Starting point is 00:02:12 the health savings account with many of these high deductible health plans. And that's a really cool health savings tool, but also kind of a life hack retirement option as well. Cause you can invest inside of that and it's triple tax advantage. So I'm just a big fan of the high deductible health plan, but again, it's a very personal decision

Starting point is 00:02:27 based on the health of your family. Have you guys priced out both, Marissa? Yes, we have. And the reason why we're going through all this is because with the third kid, we decided I wasn't going back to work. And so we're going from everyone being on my health insurance plan

Starting point is 00:02:43 to now all of us being on my husband. Got it. And what would be the out of pocket max on his plan now for the whole family? Oh gosh, right. I believe it is 16,000. 16,000. Okay. And how much do you have in the emergency fund? We currently have 17,000, but with me not going back to work, we're about to up it to 25,000. Yeah, I think that'll give you some peace.

Starting point is 00:03:11 And again, you can price it out. You can even talk to, you know, healthcare insurance pro through ramzesolutions.com to help you kind of navigate some of this and you can crunch the numbers. I personally wouldn't burn too many brain calories over it. You can kind of look at what you guys have spent on healthcare in the numbers, I personally wouldn't burn too many brain calories over it. You can kind of look at what you guys have spent on healthcare in the past, what the premiums are,

Starting point is 00:03:28 what the deductibles are, the out-of-pocket max, those are really the main things you wanna look at to decide, but the main thing is you got good coverage, you know what the in-network care is, and you're not going outside of that, and do I have good care with the network S that I've chosen, and so when it comes to the Ramsey plan, I go, what's the cheapest option I can pay for

Starting point is 00:03:46 that still covers my family? Cause really you want for the big catastrophic stuff. That's right. A little ankle biter stuff. I'm like, whatever. Cause yeah, you got three kids. So you're going to be going, you know, if you're going to go to the pediatrician during the winter,

Starting point is 00:03:56 probably one or two times. But if you're getting, you know, tubes and surgeries, and that's where you want to go. All right, I want to know, this is my max out of pocket. Yes, exactly. That gives me some peace knowing that's in the emergency fund. That's a worst case scenario. you wanna go. All right, I wanna know this is my max out of pocket. Yes, exactly. That gives me some peace knowing that's in the emergency fund. That's a worst case scenario.

Starting point is 00:04:07 Good to go. All right, let's go to Holly in San Antonio. Hey Holly, welcome to the show. Hey, thank you so much for having me. I appreciate it. Absolutely, how can we help? Well, I got started with you guys late. I am debt free now with the exception of my mortgage.

Starting point is 00:04:27 Oh, great. But I didn't start investing until about age 55. I'm 58 and a half now. I fully maxed out my Roth as much as I can. I have another mutual fund investment that I put, you know, my 15% in every month. But what I have is years ago I got into an annuity and I had about 27,000 sitting there I stopped contributing to that and started contributing more to my mutuals in the

Starting point is 00:04:54 Roth and everything. My question is I have if I pull it out early so basically a year early there's a 10% penalty on that. Would it be valuable for me to just pull that out now, roll that into my mutual funds, or should I wait for a year and then pull it out when I hit that 59 and a half? What does the 10% penalty amount to? What's the dollar amount? I have about 27,000 in there, so it's about $2,700.

Starting point is 00:05:23 Okay, and what would you pay to keep it going for the next year until you can cash it out without penalty? It's nothing. I'm just, I'm not putting anything into it or anything at all. It's just sitting there. Okay. Then, I mean, I'm doing the math on this going,

Starting point is 00:05:37 all right, I could pony up 2,700 or just leave it for a year. That's not a long amount of time at this stage of the game. So it might just be worth waiting. Okay. Yeah, is it a variable? What type of annuity is it, Holly? Like a variable or a fixed?

Starting point is 00:05:54 I gotta be honest. I believe so. It's been sitting there. It's not earning anything at all. Totally, yeah. Yeah, they do not have good returns. And I'm sorry that you even fell into this trap. Annuities make sense for almost nobody.

Starting point is 00:06:08 And the only one that would even be okay in the Ramsey world, if you really wanted to do it, is a variable annuity. But even then you're better off investing. These are used to prey upon people who are scared of the stock market, who want the stability, but they don't realize they're missing out.

Starting point is 00:06:22 And there is actually more risk in missing out on the returns. And so I would just let it sit, you know, the damage is done, you're gonna be okay. Do you have a good nest egg? Are you gonna be able to retire when you want to? You know, I would love to retire at 65, but I'm also with the mindset that if I'm still doing good

Starting point is 00:06:41 and enjoying what I do, I'm just gonna keep going, so. Absolutely. Yeah, that's great. You know, I'm working on good and enjoying what I do, I'm just gonna keep going, so. Absolutely. Yeah, that's great. I'm working on building as much as I can. I don't, I mean, I'll get a teacher pension as well, so that'll help, but I wanna work as long as I can to build it up as much as I can. Yeah, if you continue to max out retirement accounts

Starting point is 00:07:00 from, you know, you said you're 58 and a half for the next seven years or so, well, you're also, your investments are gonna double in that amount of time. If it gets an average 10% rate of return. So you should be hopefully in good shape with the pension and everything you've got going on, but I wouldn't let my foot off the gas for sure.

Starting point is 00:07:16 No, absolutely not. But I thank you guys for all your help because you've helped get me to this spot and I can't thank you enough. That means the world. You did all the hard work. Yeah, you did it. So yeah, for sure, wait a year

Starting point is 00:07:27 so you don't have to pay that 10%. But then I would take it out and invest in, like George said, kind of that seven year mark is always just that easy math, Holly too, if you're like, okay. Because if you pulled out and put in a mutual funds, you're gonna get 55 grand or so. Yeah.

Starting point is 00:07:42 Just sitting there. Way more than you have in the annuity. Yeah, tons. I mean, it's crazy. These annuities, Rachel, they're or so. Yeah. You know, just sitting there. Way more than you have in the annuity. Tons, I mean, it's crazy. These annuities, Rachel, they're being peddled more by advisors. Well, it's because of the, yeah, and it's because of the fear element that people are, I mean, and especially

Starting point is 00:07:55 after an election year, when the housing market even feels like, oh my gosh, everything just feels big and scary out there. And it feels safer to put your money in something like an annuity because you don't have the risk of everything but yet your your money's just it's not making the return it could. And they're so expensive the amount of fees and commissions built into these. I was going to say they make a lot right? The financial... I mean it's why they push whole life in annuities instead of telling you

Starting point is 00:08:19 hey just go invest in your 401k you'll be they they got to make their money and so I don't like these quote- quote unquote wealth strategists and advisors that are really just insurance salespeople. Not a fan. Sorry, Rachel. Really just coming in, coming in hot today. Coming in hot with high deductible health care plans and annuities. It's a hot show. It's a crazy show out there. This is the Ramsey Show. You spent years trying to get everything just right for your family. Now you need an easy way to make sure your important financial documents are as organized as the rest of your house. Well good news, KnockBox, that's N-O-K box, as in next of kin box, is a complete system

Starting point is 00:09:02 that helps you be sure that you leave happy memories, not a mess, when you pass away. KnockBox is a simple way to organize important paper and digital documents, IDs, tax returns, insurance policies, estate plans, accounts, and other personal history in one manageable place. Your family will feel your love in every detail you take care of. So start taking care of them at knockbox.com slash Ramsey. A well-organized legacy is a gift to your family. That's nokbox.com slash Ramsey.

Starting point is 00:09:39 Welcome back. Going to the phones we have Sarah in Riverside, California. Hi Sarah. Welcome to the show. Hi, thank you for having me. Absolutely. How can we help? So I have some guilt and pride around using child support money. So I was in an abusive relationship and by the grace of God, I was able to leave when my son was about three weeks old. I met my now husband when my son was six months old and he's now 12. My husband and I had sat and talked and said, we don't want any money. We don't want anything.

Starting point is 00:10:18 We want nothing to do with him. Well, the judge made the decision that it's not our choice and it's not our money. It's for our son. So we were just putting all that money in an account. We had some debt and in 2021, I lost my job and we needed four walls. So we dipped into that account. And as of January of 2025, we are officially done with baby step two. We are completely debt free. Oh, congratulations.

Starting point is 00:10:49 Thank you. It's very exciting. I'm really happy to be there. Um, but I have about $4,000 from that child support money that we said we'd never use. Um, and I'm wondering if I should just pay it back like a debt and just keep going like if we were on baby step two, or the connotation of the child support money in the first place just kills me. And I don't know what to do about it.

Starting point is 00:11:18 So this guilt, Sarah, I'm just double checking that the facts are correct. You didn't use this money immorally. It was more of a conviction that you personally had with it because of who it came from. And you just, the thought of using it just feels gross and you had to use it at one point. But from a legal standpoint, you used it exactly how anyone else would use it, right? To help run the household because you're taking care of a child and that other parent is helping with that, correct?

Starting point is 00:11:46 Exactly. Yeah. And what was the court order? How much and for how long? It was, originally it was until he was 18 and it was supposed to be $430. The only money that I've actually seen from that is the COVID money. I was able to get his COVID check. I didn't know that it was coming. And my husband adopted our son when he was four years old, everything finalized.

Starting point is 00:12:14 So that's when the child support stopped. But there's so much arrears that, I mean, I will still randomly get like a $12 check. Okay, so it's over essentially you're not getting future payments You just have this kind of savings sitting here and you feel like I don't want to I don't want to touch this money It feels weird. Yeah, how much is in that account? In the account right now is 2,000 and I used four of it four of it

Starting point is 00:12:40 And what are you gonna plant? What are you gonna do with it eventually? Are you gonna give it to him when he's 18? Or help pay for a car when he's 16 or college or what do you think? That's what we were thinking. Just a car or something like that. Like I said, my son, my husband's been around since my son was six months old. So my son doesn't know. He doesn't know any different as of right now. And eventually we're gonna tell him. I mean, we have to tell him, but we're just not there yet. He's not emotionally mature enough to be there yet.

Starting point is 00:13:10 Sure, okay. So what I'll speak to, I'll speak to the money side of it, Sarah, from the sense that, no, this is not a debt that you need to pay. I mean, you use the money essentially how the system works and you use it exactly appropriately. And I know that doesn't sit well with you because of who it's coming from.

Starting point is 00:13:28 And that totally makes sense to me. But I think kind of the quote unquote debt going forward, which is not a debt, but is to say, okay, how can we best set up my son to have a life where he from a financial standpoint understands money, doesn't have to walk through this debt free journey and we're setting him up in order to do that. And that looks like things like maybe college

Starting point is 00:13:51 or helping with his first car, you know, whatever that may look like for you guys. And for me, I wouldn't hold on to that emotional $4,000 anymore because I think you need to release that, but I think going forward, the motivation now is to pass a great legacy onto your son, right?

Starting point is 00:14:11 Regardless of $4,000 or not. So I totally understand how that can feel like, oh my gosh, we use this money and it feels so gross and I hate it because I don't, he's a terrible person. But you guys were in a pinch at the time and that's what that money's for, is to help take care of your son, and that's what you guys did.

Starting point is 00:14:27 So I would let go of that, because emotionally I think it is holding on to you so deeply. Yeah. So in the filing cabinet of your brain, we need to refile this instead of child support money from an abusive, awful relationship. This is changing my family tree money

Starting point is 00:14:44 to set up my child for a better life than the one I experienced. Yeah, and Sarah too, you know, give yourself a little bit of grace, you know, if this was a $60,000, you know, thing or something, and you're like, oh my gosh, you were supposed to use it for a down payment on a house or you know what I mean?

Starting point is 00:14:57 Like a magn, like I feel like, like a lot of this magnitude and weight from a dollar standpoint, I feel like we could go at it a different way because I could see, you know, the more money it is, the more weight it feels, right? So with this 4,000, yeah, I want you to release it for you, Sarah. Again, it's not about the dollars at that point.

Starting point is 00:15:14 To me, it's that emotional attachment that's still there to him. And I want that release from you, you know? So whatever that looks like with your own work. I would have a goal for this money instead of letting it just sit there. It's only gonna make, you know, reopen the wound. So I would put it in a 529 plan for a college.

Starting point is 00:15:33 I would put it in a savings account for a car fund one day because that day is going to come and these things cost money. And it's part of the deal. And you know, it's a shared burden because that person was a parent and this is what the court ordered. And so it's part of the deal. And you know, there's a shared burden because that person was a parent and this is what the court ordered. And so I would, it's hard to just say,

Starting point is 00:15:49 release the guilt, Sarah, you're doing great. But that's the truth of it. It's that hard and it's that simple to just go, all right, it happened, that was the past and I'm gonna make a better future for my kid now. And it sounds like you guys are thriving and this child is so lucky to have you two. Yeah, we're, he's definitely blessed.

Starting point is 00:16:06 My husband is literally a God's son and he took him on like his own. And like I said, nobody knows. There's a couple people like family knows, but he doesn't know. And my husband stepped up in more ways than I could ever even pray for. Well, and give yourself to so much credit, Sarah,

Starting point is 00:16:25 because we talked to so many people on this show, and women specifically that are in a situation and they don't feel like there's a way out, and whether from its financial type abuse, where a husband's withholding and not allowing. Controlling. Yes, to physical, emotional, I mean, you can fill in the gaps.

Starting point is 00:16:43 The spectrum is wide. And to break that cycle is so, so difficult. And as Dr. John Deloney says, who works with, you know, so many people in this area, says that it's rare to have someone actually break it. So when you do, it is a- Something to be celebrated. It's an applause.

Starting point is 00:17:00 I mean, it really is, Sarah. So, I mean, I just commend you for that. I know that was 12 years ago, but that is that's incredible. Absolutely incredible. Yeah, George, when we you know, think about part of the baby steps and what she said I loved because yeah, it's baby step, you know, they're they're past baby step two, they're moving on for that fully funded emergency fund and so forth. And there there is something so freeing from the

Starting point is 00:17:21 sense of, yes, the dollars and cents are there, right? We're being wise with our actual tactical money. That's, you know, very important, but it's so much bigger than that. It is like the place where money sits in our lives, the value of which we give it. And when you are out of debt, you have that emergency fund. It's you don't have to be obsessed with it. You don't have to stress about it because you're setting yourself up so well. And what that speaks to your kids in a household is everything. Like to me, that's part of changing the family tree.

Starting point is 00:17:49 It's not just from a monetary standpoint, but from an emotional standpoint that money doesn't have to be a stress point in our lives because we have control over it. Yeah. And there's a lot of belief there. People think there's some sort of like financial DNA that you're born with because of the environment and place and parents. But we're proving it with Sarah that you can born with because of the environment and place and parents, but we're proving it with Sarah that you can break chains.

Starting point is 00:18:07 You might be the first one in your family to become debt-free, to create a better life for your kid, for your kid to go to college debt-free, for you to have a home that you own free and clear, for you to become a millionaire. And it's something you get to choose and it's a daily choice and it's one of the hardest patterns to break because of all the shame and guilt from the past

Starting point is 00:18:24 and your belief system is so tied up and you talk about this and know yourself know your money the different money classrooms you grew up in it really shapes you and you have to really try to break all of the bad stuff yes get to the good stuff totally yeah yeah and as parents you know whatever you can do you know we always say more is caught than taught but from again that, that standpoint of money, we're going to get in control of our money because yes, from a monetary standpoint, we need to know where our money's going.

Starting point is 00:18:51 We want to be debt free. We want to start investing and letting the math work for us, like all of that. But more importantly, realizing that money is a tool. It is a tool to create a life that you love. That's what it is. It is not good. It is not bad. It doesn't have morals.

Starting point is 00:19:04 And so how can that lesson and where money is placed in your life and in your heart and your identity, what your kids see, that speaks louder than words. This is The Ramsey Show. You know, one of the first things I discovered working in the financial world is how absolutely devastating it is when the breadwinner of a family dies and there's too little life insurance or none at all. Grieving families are suddenly left behind scrambling to pay bills and trying to make ends meet. I also discovered that there are a lot of rip-offs in the life insurance world like

Starting point is 00:19:39 that whole life crap posing as an investment opportunity. What you need is level term life insurance usually 10 to 12 times your income which is the smartest most affordable way to protect your family. The key is finding an independent broker who represents a ton of companies and works for you not for the insurance company. This is exactly what my friend Jeff Zander and his team at Zander Insurance are all about. They shop the term life companies to find you the best options and they've been around

Starting point is 00:20:10 for over 95 years. So you know they'll be there when you need them. Zander is the real deal and that's why they've handled all my personal insurance for over 25 years. I trust them and you can too. Visit Zander.com for instant online quotes or for a more personal touch, give them a call at 800-356-4282. Investing can be one of the areas of money that can be very overwhelming and confusing.

Starting point is 00:20:42 And it's not something that you're going to just know everything about that world in a 60 second Instagram reel. And so if you really wanna dive in to understand how to do this part of your money well, how to invest well, and how to make sure that you don't make any mistakes when it comes to this, because that can be very costly. Make sure to check out our Investing Essentials Virtual Event.

Starting point is 00:21:02 And it's gonna teach you everything you need to know on how to get started with investing and how to maximize your investments. So it's happening March 4th and 5th, tickets start at $199, and it's hosted by Dave Ramsey and George Camel. Don't call it a comeback. And you guys have done this event before,

Starting point is 00:21:21 and it sold so well, and people loved it, because you guys are really diving into the tactical side of investing and like, hey, what does this really look like? And it's everything from stocks and mutual funds to retirement to real estate and all the areas. Beyond the baby steps. You know, we can only cover so much on this show and we kind of go surface level, but in this event it is, you know, two and a half an hour hours each night taking your questions, deep diving on this and Dave unpacking his actual real estate portfolio, how he analyzes investments.

Starting point is 00:21:50 And so it's something he's never talked about on the show here and people loved it last year. So we're bringing it back. Absolutely. Can't call it a comeback, but it is. It kind of, kind of like a comeback. So get your tickets today at ramsysolutions.com events or click the link in the show notes

Starting point is 00:22:05 if you're listening on podcasts or YouTube. All right, let's go to the phones and we have Zach in Albany, New York. Hi, Zach, welcome to the show. Hey guys, how are you? Thanks for having me on the show. Absolutely, how can we help? So my wife and I are having a debate.

Starting point is 00:22:23 We're on baby steps four, five and six and we're having a debate as to whether pay our house off or to buy a new vehicle. All right. So tell me about the car. What car do you want to replace? a smaller SUV and it gets a little crammed with the baby seat in there and we may be expecting a second one. So she would like to upgrade in vehicle so we're not crammed into her car. Okay, so it's more of a convenience upgrade, if you will, not that the car is falling apart and we have to replace it.

Starting point is 00:23:02 So not urgent, but more just out of like, yeah, the convenience of life. Stupid question, could you get like a slimmer baby seat and solve all of this? I don't know if they make those, but I guess I could look. Oh, they do. I've done my baby seat research, my friend. But anyways, let's talk more about this.

Starting point is 00:23:18 What is that car gonna cost as she wants? She's looking at a GMC Yukon. We would buy used, not new. How big is your baby, man? What's that? How big is your baby that you need a Yukon? Well, we already have one and we would like that, you know, we may have maybe having a second one soon.

Starting point is 00:23:40 So just just comfort, you know. Okay. Yeah. Okay. It would be in the price range of like 50 to 60 thousand we are on baby steps four or five and six we are baby steps millionaires how much you guys make a year we make we made 290 this year and we're on track to make about $315 this year. Incredible.

Starting point is 00:24:06 Good for you guys. Good for you guys. What's left on the mortgage? The mortgage is $186 and we would be paying cash from a brokerage account that's non-retirement that we've been saving up for land. But we put a kibosh on that idea since we may be having a second baby now. Okay. Okay. So how much is in there?

Starting point is 00:24:31 So priorities have shifted. Yeah, how much is in the brokerage account? About 80,000. Okay. Okay. So either way, we're not gonna pay off the house with this lump sum, but you're saying, should we take that 80 and put it toward the mortgage or toward the car?

Starting point is 00:24:44 Correct. So my thought was I'm more of the saver and my wife's a little bit more of the spender. My thought was if we took the entire brokerage account, put it on the house, we could pay it off in about a year and a half and then take the mortgage payment and everything else and save up for a car. Okay. Yes. I mean, so yeah, either way, Zach, let me say this. Routes A or B would work. Okay. Yes. I mean, so yeah, either way, Zach, let me say this, routes A or B would work. Okay.

Starting point is 00:25:09 So I always like to find, I don't know, road C. Like, is there like a third option in there that feels, that feels good to both of you, meaning you're running the numbers in the math. You're seeing, oh my gosh, if we put 80 grand towards this house, you know, you're putting it towards the principal. Like, you're not going to, like, you're seeing the math, like really, you know, you're putting it towards the principal, like you're not gonna, like you're seeing the math, like really, you know, it's on your side majorly in that way, Zach, so that totally makes sense.

Starting point is 00:25:31 So I'm just wondering if, you know, you guys don't have a second kid. And I think what you both need to say, cause you haven't really said it on this call, and I think I just need to hear it from you, that you guys do not need this car, that people function with two babies and Camrys all the time. And is it squished? Absolutely. But like, you guys do not need this car, that people function with two babies and Camrys all the time.

Starting point is 00:25:46 And is it squished? Absolutely. But like, you guys would be okay. Can we just, can we say that out loud? I 100% agree. I'm trying to be a good husband and do right by my wife because I am the money nerd.

Starting point is 00:25:58 Making the- And I know this is something she wants. I hear you, I hear you. And people work hard for our money. Totally, no, no, I hear you. And the car is not bad. Getting a Yukon is not bad, Zach, at all. But I wanna make sure,

Starting point is 00:26:10 cause this is where lifestyle creep a little bit starts to play in. And I think if you both said, yes, we do not need this, like we would be fine. We could have two babies in the car that we have now, it's a small SUV, we would be fine. But I would love a great SUV. Like that's what I would love.

Starting point is 00:26:28 I would love it. Rachel said what I said just in a nicer way. No. And America loves her. But I want her, and I want you guys to be on the same page of why you're buying it, because I don't want her to be like, no, no, no, it's like, I have to have this. Like, it is just too, everything is just too small

Starting point is 00:26:43 and I can't do it. Because if that starts to be the mindset, what's gonna end up happening, again, it's lifestyle creep, your life just starts, you spend more and more and more and more and what we need versus what we want starts to really blur. So I think I would feel better if I knew, Zach, that both of you were like,

Starting point is 00:27:00 yes, we do not need this car. We would like this car. Listen, Zach, I have a minivan. I would love a Yukon. Like, I, we do not need this car. We would like this car. Listen Zach, I have a mini van. I would love a Yukon. Like, I get it. I would want one. I don't need one, but I would want one. Second caveat, she's not pregnant?

Starting point is 00:27:17 Well, she is. We just haven't told anyone yet. Oh! We're the first! Oh my gosh! Such an honor. Okay, that changes this. Uncle George and Aunt Ray Ray,

Starting point is 00:27:24 we are the first to know the news. Cause it was kinda like, well, we might have one, like, okay, well, might is different than she is pregnant. And so there is an actual timeline now of, all right, nine months from now, we would want a bigger car. So here's my, and this is coming from Mr. Frugality, who was like, I'm gonna pay off the house

Starting point is 00:27:42 before I upgrade my car. Now we didn't have a kid then, so it's different. But I'm going, hey, let's cash out the brokerage. We're gonna pay some taxes on it. Let's buy her, set a budget, $50,000. We're gonna get her a Yukon. Whatever's left, we're gonna throw it to the house. And then we're going to be gun-ho

Starting point is 00:27:56 getting rid of this mortgage. Would that be a fair game plan? Because either way- I think that's a great plan. Yeah, that's a great option. Yeah. With your income, the house is paid off within a year or two, right? Yeah, you guys are gonna be fine, especially because of your income, right? If you guys were making a hundred

Starting point is 00:28:12 grand, I would slow all of this way down. And say you're buying too much car. But you guys make $300,000. Okay, I want my question answered, Zach. Do you think your wife, does she, will she emotionally say, yes, this is a complete want, it's not like a need, like we absolutely have to have it. She acknowledges that it is a complete want. Okay, that's great. And like, we're both, I mean, I'm more of the saver, but we're both pretty frugal. Yep.

Starting point is 00:28:37 And so when she wants something, it's really not too often. And so I'm just trying to make that happen for her. Totally, no, I hear you. Yes, you're a great husband, Zach. So yeah, I would move forward, I would buy it. And again, especially that since you guys for sure are having to, and from an income standpoint, what you guys have left on the mortgage and all of it,

Starting point is 00:28:56 I think, yeah, I think you guys will be in a great position. And you guys are Baby Steps Millionaires, so I'm just curious, are you gonna buy new or slightly used? No, he said used, he said used. It would be certified certified My good move good move good man. Let someone else take that first hit on depreciation. Yeah, you guys are doing it by the book I'm proud of you guys. There's no wrong answer here, but I would defer to the pregnant woman because I'm scared of them

Starting point is 00:29:21 You don't want to mess with them man, I'm just saying It's a sensitive, sensitive line there, huh? And this is a very similar situation because my wife wanted the bougie mom SUV and it hurt my soul because I can do math, but life isn't math. She wanted the car. We saved up, we paid cash for it and she loves it. And it's fine. And it was her dream. I don't need to ever make everything my dream

Starting point is 00:29:45 I will say babies can make everything very emotional though So as I'm glad that Zach stick into the facts and the numbers and the numbers look great So is it and we learn mission to spend Zach a Yukon can hold two seven pound babies at least Bare minimum bare minimum and congrats Zach. We're so excited for you minimum. Fair minimum and congrats Zach we are excited for you. What does the future hold for business? Ask nine experts and you'll get ten different answers. Economic growth or a recession? Business taxes will go up or down. AI will help us work or it will replace us all. But there's no such thing as a crystal ball. That's why more than 40,000 businesses have future-proofed themselves with NetSuite by Oracle, the

Starting point is 00:30:31 number one cloud enterprise resource planning system. Ramsey Solutions uses NetSuite and you should too. Whether your company's earning millions or even hundreds of millions, NetSuite helps you respond to immediate challenges and seize your biggest opportunities with one millions or even hundreds of millions, NetSuite helps you respond to immediate challenges and seize your biggest opportunities. With one unified business management suite, there's only one source of truth for the visibility and control you need to make quick decisions. NetSuite's real-time insights and forecasting help you see into the future with actionable data.

Starting point is 00:31:06 And when you're closing the books in days, not weeks, you can spend less time looking backward and more time focusing on what's next. And speaking of what's next, download the CFO's guide to AI and machine learning at netsuite.com slash Ramsey. It's free at netsuite.com slash Ramsey. Today's question of the day is brought to you by YREFY. If you are struggling with defaulted private student loans, YREFY offers a great solution to get you back on track. For a low fixed rate and more flexibility, go to yrefy.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com.com. and daughter who are both under the age of 12. When I showed them to my husband, he responded that he had taken them out

Starting point is 00:32:06 in our children's names to help them establish a credit score before they became adults. We have followed your principles for years, so I was shocked that he did this without talking to me about it. How should I handle this situation? Ooh. This feels like there's a tinge

Starting point is 00:32:20 of financial infidelity here. Behind her back opened up credit cards and the kids' names. So weird, yes. And not mention it. And the way that you're, when you said, you know, we've followed the principles for years, I'm assuming that means you guys are on the same page. You're talking about money. I mean, there's some couples that, you know, they don't know what the other one's doing.

Starting point is 00:32:39 But if you are following a level of Ramsey, and that means you are, you know, connected and you're talking about money. So the fact that he didn't bring it up, that feels very off to me, very off. And the fact he opened up credit cards in your kids' names. Well, I'm guessing it's in his name and they got cards with their names on it as authorized users.

Starting point is 00:32:57 Yeah, because if you take out, yeah, a line of credit for a child, right? I mean, you- It's a trend because of these TikTok videos where they go, hey parents, here's a life hack for you. Add your kids as authorized users and they can take your credit score when they're 18 and have great credit so they can go get some more debt.

Starting point is 00:33:15 Yep. Well, what we've heard too is people calling the show saying, yeah, my parents took out debt in my name to build up a good credit score. And then they ended up. Destroyed my credit. Yeah, destroyed the credit because they couldn't handle it. And so you're just like, oh, it's, yeah.

Starting point is 00:33:29 And it gets to be a fine line too of identity theft. I'm like, if you're, you know what I mean? Like it's kind of to a point of like- There was no consent here. I mean, yeah. So it's, I don't like it. I don't like playing the game. And so, yeah, but a lot of it is a TikTok trend.

Starting point is 00:33:43 Yeah, there's a, we have an article here related to this. Parents are gaming their kids' credit scores, and it's around the same idea of stories of people who had their parents add them as authorized users. There's some horror stories in there. There's some explanation, but it says, many are taking advantage of these tools. A 2019 poll commissioned by creditcards.com,

Starting point is 00:34:01 that's perfect, 8% of roughly 1,500 American parents surveyed said that at least one of their minor children had a credit card presumably through authorized usership because kids under 18 can't get their own card. And TransUnion data showed that nearly 700,000 22 to 24 year olds had authorized user accounts. Oh dang, yeah.

Starting point is 00:34:21 So, and here's the thing. I don't think these are terrible people. They're just well-meaning parents who have fallen for the system. Who go, well, this is the path. They gotta have the credit score because otherwise, how are they gonna rent an apartment and how are they gonna travel

Starting point is 00:34:34 and they can't book airlines without it. And I'm going, have you ever tried a different route? You don't need to do all this gyration to live your financial life. Yes, there's so much more freedom, you guys, when you're not chasing the credit score. You can live life without a credit score. You can do everything you just said without a credit score.

Starting point is 00:34:49 It is possible. You can even get a house through manual underwriting without a credit score. And so, yeah, I think like you said, it's good intentions. I'm going in and say, I'm gonna try to set my kids up, but you're falling right into the system that gets so many people, millions of people stuck and in that wheel of debt.

Starting point is 00:35:05 And it's like, it's not worth it. It's not worth playing the game. And then let alone having any level of risk for another human being of their financial wellbeing that if you screw this up, it doesn't just hurt you. It's hurting your kids then at that point. I mean, so it's just, it's a mess. It is absolutely bonkers.

Starting point is 00:35:21 And I cover this in my book, Breaking Free from Broke. I have a whole chapter on credit scores, a whole chapter on credit cards, and I unpack how to live life outside of the system. And it's not as complicated or as difficult as people would have you believe. In fact, it's way more peaceful. It's way more simple.

Starting point is 00:35:36 I don't have 16 cards to manage to try to get the rotating cash back rewards. I have a debit card and I use it and it has my money on it. And when that money's gone, it is gone. You know what's funny, George? I feel like when things are less complicated, they feel less sophisticated, right? Everyone's like, oh, but that's so boring.

Starting point is 00:35:54 That can't be the smartest way. Yeah, yeah, there's gotta be so many other hoops to jump through and you can live your life that way financially you can, but you're gonna be exhausted. You're gonna be exhausted again, with a system that is set up to screw you. Like that's what it is. It's not there to free you and for you to gonna be exhausted. You're gonna be exhausted again with a system that is set up to screw you like that's what it is

Starting point is 00:36:05 It's not there to free you and for you to be financially free They want you in the system because they make so much money off of you But when you exit out of the system and you're like, you know what? I'm gonna live with a debt with a debit card with cash We're gonna save up and pay for things and we're not gonna sit here and try to play the industry's games over and over and over and Over and over what is sophisticated as beasts? It is. I'm like, there's just that level there that is,

Starting point is 00:36:28 it is so much worth it than the mental dance and gymnastics that you have to play. So here's a wild concept. What if as a parent you taught your kids how to manage money instead of managing debt? That's all the credit score is, is how well you've managed debt. Doesn't reflect how much money you have in the bank.

Starting point is 00:36:42 Doesn't reflect your income. It just reflects your relationship with the lender. And so that's how I'm aiming with my kid. I'm going, they're not going to, they're going to look at people with credit scores and credit cards going, why are they doing all that work, dad? And I'm like, I don't know, America, it's crazy. Lost our minds. It's crazy out there. Oh man. Yeah. Parents don't take credit cards out and don't be an authorized user. And don't say you follow our principles for years while you still clearly have credit cards. parents don't take credit cards out and don't be an authorized user. And don't say you follow our principles for years while you still clearly have credit cards.

Starting point is 00:37:09 You don't get to pick and choose. This isn't a buffet. This isn't a buffet. Get out of here. Get out of here. All right. Let's go to Shane in St. Paul. Hi, Shane.

Starting point is 00:37:17 Welcome to the show. Thanks, Rachel, for taking my call. How are you today? We are doing great. Glad you called in. How can we help? Thank you. Well, I'm a relatively new listener. We're on baby step number two and my question is we have probably about $17,500 in credit card debt and a couple of other small loans. And we have some money set aside. And I was wondering, is there any way that you can deviate

Starting point is 00:37:51 from that snowball plan? Tell me, yeah, why would you want to? What are the numbers you're seeing, Shang? It usually comes down to numbers. Basically, the biggest one we have is we have a credit card with a high interest rate that adds a balance of about $10,000. OK. What's the interest rate on that?

Starting point is 00:38:15 It's like 18.5%, I think. And then we have another credit card with the balance of 7,500 and that interest rate is, is 9.9%. And then we have a, um, kind of like a small, um, home improvement loan with the balance of like $350 that you have to pay off. And then, um, I have a work loan that I got through my work with zero present interest and I have a balance of like $800 on that. Okay. And how much do you guys have saved?

Starting point is 00:38:57 Well, we just got our taxes back and so we have about $14,500. Amazing. Oh my gosh. taxes back and so we have about 14,500. Amazing. Oh my gosh. So the math doesn't matter that much because you've just knocked out all the debts but the last credit card in this scenario. Right, so I guess my question is,

Starting point is 00:39:19 would it make sense to pay off the highest one, the $10,000 first and then pay the two small loans and then whatever's left pay on that last credit card? No I mean listen if you're doing the math I understand what you're saying because of the interest rate and what we always talk about on this show Shane and what you're gonna start to realize is that personal finance and winning with money is so much more about your behavior than it is about math.

Starting point is 00:39:48 And so if we were all, you know, chasing math, we wouldn't be in debt in the first place, right? So it's not a math problem. It really is us winning. And so the fact that you do have a bulk of money, which is absolutely amazing, what that does to me, that just, that jump starts. I mean, tonight you could have that $800 paid off,

Starting point is 00:40:07 that 350, I mean, those are just like ankle biters, right? You're just like, you just need to get in there and just get them done with. And then to pay off a $7,500 credit card in full and it be completely done, like- And knock the next debt down to probably around six grand. All the way, yes, that's right, that's right, the extra. You'd have almost six grand. Or four grand. Do you have an extra? You'd have almost six grand to throw at the 10K debt.

Starting point is 00:40:27 So you'd be down to about $4,000 left. So the 18% interest, the way you're gonna attack this thing, it's not gonna amount to much. Because you're not gonna be in debt, Shane, that much longer. I mean, when you're looking from a math standpoint, you guys could take on extra jobs

Starting point is 00:40:41 and get that paid off in two months. Yeah, you throw a thousand bucks a month at this thing, it's gone in four months. Yeah, so it's gonna bucks a month at this thing, it's gone in four months. Yeah, so it's gonna be so quick that the math at that point doesn't matter. But I'm excited for you. You said you're a new caller, so I'm so glad that you're joining in. And using that refund for good instead of a vacation because you deserve it. Well done, Shane.

Starting point is 00:40:58 Well done. Well, thanks to all the men and women in the booth making this show happen. George, thank you. Thanks to our great audience here in Nashville, Tennessee. And thank you, America. This is The Ramsey Show. This show is sponsored by BetterHelp. You've probably heard people talk about different kinds

Starting point is 00:41:15 of flags in friendships and romantic relationships. Red flags, green flags, beige flags. Listen, it can be helpful to look for patterns or unsafe behaviors in potential relationships, but all those labels can distract from what's really important, your values, and whether you and your potential partner are willing to wake up every day and choose to honor each other's values. And look, I know it can be tough sometimes to even know what's important to you in a

Starting point is 00:41:44 relationship. Therapy can help you figure out what your values actually are and decide your boundaries and your non-negotiables. And if you're thinking about starting therapy, try BetterHelp. BetterHelp is a hundred percent online therapy that works with your schedule. To get started, just fill out a short online survey to get matched with a licensed therapist. If it's not the right fit, you can switch therapists at any time for no extra cost. So whether you're dating, married, building a friendship or working on yourself,

Starting point is 00:42:12 do it with help from BetterHelp. Visit betterhelp.com slash Ramsey Radio to get 10% off your first month. That's BetterHelp, H-E-L-P.com slash Ramsey Radio. Live from Ramsey Solutions, it's The Ramsey Show, where we help people build wealth, do work that they love, and create amazing relationships. I am Rachel Cruz, hosting this hour

Starting point is 00:42:37 with bestselling author and my cohost of Smart Money Happy Hour, George Hamill. And so give us a call at 888-825-5225 and we're answering your questions on life, money, relationships. The pursuit of happiness. Anything and everything, so give us a call. To kick us off this hour, we have Jeff in Oklahoma City.

Starting point is 00:42:59 Hi, Jeff, welcome to the show. Hello, how are you today? We are doing great, How can we help? Well, my question is, we are looking to take what I would consider an extravagant vacation this summer. Ooh, my favorite thing in the world, Jeff. That is so exciting. You called the right person.

Starting point is 00:43:18 She's gonna say yes. Well, then, let's just get the yes and move on. Uh-huh. Basically, kind of looking for confirmation that it's something that would be okay to do. So here's, I'll tell you a little bit of the history and then we'll get into the numbers. My wife and I were early to mid forties.

Starting point is 00:43:39 We've got three kids at home. One of them graduates next year and we'll have to report to school, um, sometime at summer of next year for sports. So this is kind of the last year to be able to take a family vacation, um, and have that oldest one to go with us. Um, all in, we're looking at like $9,200. It is seven days, two days is travel. Okay. Uh, ocean front, all inclusive resort, um, and going to the Caribbean and about 4,000 of that 92 is flight.

Starting point is 00:44:18 Oh yeah. It's so expensive. Because getting out of the Midwest is horrible. Yeah, it's terrible. Um, and that includes, you know, vehicle rental when we get there, excursions, you know, going out to eat a little bit, even though it is all inclusive, you know, trying some of the local food. You've done your due diligence, Jeff.

Starting point is 00:44:37 You've, you have a- You've traveled planned like no one else. You have detailed it out. Okay, so where are you guys financially? Do you guys have debt? Do you have savings? So this, I'll run through all the numbers here. Household income gross is $3.35 to $3.70 depending on bonuses, which happens every year, so probably

Starting point is 00:44:59 closer to that $3.70 number. The only debt that we have is our house. We owe 273 on it, purchased it in 2021, 3% fixed, bought it for 370, valuation is 620. How much in savings? IRA, we've got 396. They're just your normal cash savings, like emergency fund plus whatever else.

Starting point is 00:45:26 So the emergency fund, we've got $53,600, which a six-month emergency is $24,500. All right, Jeff. Jeff, Jeff. If this was the voice, I'd hit the buzzer, I'd spin my chair and select you. Jeff, I want you to upgrade your room and spend a little bit more and go on the strip. I'm a little miff. And go on a strip. I'm a little miffed you're only spending nine grand now. I know.

Starting point is 00:45:48 Go upgrade you and your wife to first class. Spend a little more, Jeff. I'm not kidding. You are 100% okay. And if anything, you got some wiggle room, Jeff. I mean, yeah, okay, that was fun. And your IRA, $396,000 is what you said. What do you guys have for 401k? So in the NeTrade account, we've got 27.5. 401k

Starting point is 00:46:13 is horrible, but we're now putting 15% in, so it'll be caught up very quickly. 246 between the both of us. And then outside of the emergency fund of 53.6, just in another savings account, we've got 53,000. And then, you know, around 15,000 in the bank account. I've lost track of how much money you guys have. You have that much. You're doing great. Is your wife the same way as you? Yeah. Yeah. Does she have fun? Do y'all have fun?

Starting point is 00:46:42 Uh, we've got three kids, so. Yeah. You know, fun. You'll feel like you've got three kids. So yeah, you know, so we're always chasing them around. Sure. I'm playing. I'm messing with you. Jeff. I'm messing with you. Yes.

Starting point is 00:46:55 We don't, we don't live extravagant or anything. Vehicles are paid off. They are, you know, a few years older, but you know, there's no sense in buying a new vehicle when you can get one a few years older that's low miles for half the cost. So Jeff, you're a, you're a jewel of a human being. You're my spirit animal, Jeff. I appreciate you. Uh, George wants to be you when he grows up is basically a good seven years from now.

Starting point is 00:47:18 This is what I have to look forward to. My wife convincing me, I'd much rather have more than 246 in the 401k. Jeff, I think y'all are gonna, yeah, I think you will be totally fine. And I'm really excited for you, Jeff. I've talked about this a lot on the show because I think it was like one of these moments that I heard this and I thought,

Starting point is 00:47:36 that is so good. Arthur Brooks talks about, there's five things you can do with money. Four will actually buy you happiness. Like your brain, scientifically, has a level of happiness in it. One thing you can do with money that does has no happiness. The first one is to give, be generous. You actually can buy some happiness doing that. A saving actually creates a level of

Starting point is 00:47:59 happiness because there's progress being made and in our psychology it's good for us to see progress. There's progress being made and in our psychology, it's good for us to see progress. There's one about buying your time back. So having someone mow the lawn, right? And you use that time to go. We do that. Yeah, hang with a friend. And then the fourth one, Jeff, you ready?

Starting point is 00:48:16 The fourth thing, the fourth way to literally buy happiness is to buy experiences with the people you love. So that can be a great dinner out, that can be a vacation. So I'm saying, oh, and then the fifth thing that does not buy happiness is buying stuff. You get a temporary hit and then no long-term happiness through that.

Starting point is 00:48:35 So you are doing this very wisely. And this is something that you, we always say you wanna give, you wanna save, you wanna spend, and this is your spend. And I want you to spend it in this way because I think it's gonna be such a fun week for you and your family.

Starting point is 00:48:49 And yes, you have our full permission and you have my permission to upgrade you and your wife to first class. So just take that, take that little money. If you want. So just tell your wife, Rachel said we could. Just go with it. And then when you get back from the trip,

Starting point is 00:49:02 everyone gets a thousand dollar shopping spree. Stop, stop. There we go. Stop, stop, stop. There we go. Stop, no, cause then you're buying stuff, George. He's not gonna get happiness doing that. I'm just saying, I feel like the kids would really like you for that. Yeah, no, it's great.

Starting point is 00:49:15 The kids, I will say the kids do not want for anything, but they also have got reasonable expectations as well because we've tried to raise them to not want what everybody else has. So good. You've raised some great kids. I'm just surprised they want to go on vacation with you guys at this stage of their life. That's the best part, that you raise kids who like you. Yeah.

Starting point is 00:49:40 Well, the oldest one, the 17-year-old, it depends on the day. But the other two, they're under 12, you know, it depends on the day, but the other two, you know, they're under 12. So that are still pretty awesome. This is going to be this is going to be so fun. And, you know, I'm kind of messing with you. But honestly, one of the most powerful financial principles is contentment. And, Jeff, you just sound like such a content guy. Like your priorities are so in line. And when you live like no one else, we always say you get to live and give like no one else.

Starting point is 00:50:09 And Jeff, they're gonna be living like no one else in the Caribbean with a paid for vacation, making great money and I mean, and just doing it. It's awesome. And Jeff will be tracking it in his Excel spreadsheet. Jeff will be. He's the dad who had the MapQuest printed out, ready to go for the trip.

Starting point is 00:50:25 Like, this is the dad I aspire to be. 100%. I love it. Jeff's gonna know. And they make such a great income, I am not worried for a second about their retirement. No, no. You will be fine. And it's $9,000, right?

Starting point is 00:50:36 It's not $29,000 or something. Yeah. We're not talking about that. They said they're already Baby Steps Millionaires. They're very close to it. Yeah. It is great. In their early 40s. Jeff, I really am. I'm so excited for that. So it's- They said they're already Baby Steps millionaires are very close to it. Yeah, it is great. In their early 40s. Jeff, I really am.

Starting point is 00:50:46 I'm so excited for you and your family. Enjoy that Caribbean vacation. It's gonna be so fun. Send us a picture when you come back. There's a time in your life and in the Baby Steps for renting, but you don't wanna do it forever because when you rent,

Starting point is 00:51:01 you're still paying for a mortgage, just somebody else's. Plus, rent means instability in your budget, because it always goes up, never down. So when you're ready to buy, make sure you work with a mortgage partner you can rely on, Churchill Mortgage. Churchill is Ramsey Trusted to help you make the move

Starting point is 00:51:20 from renting to home ownership wisely. Churchill understands that when you buy a home the Ramsey way, your mortgage payment will be a consistent, manageable part of your monthly budget. Plus, when your home is paid off, that was your largest expense, now it's extra money in your pocket and an asset towards turning you

Starting point is 00:51:40 into a baby steps millionaire. So get started on the American dream of home ownership today at churchhomemortgage.com. That's churchhomemortgage.com. This is a paid advertisement. NMLS ID 1591, NMLS consumeraccess.org, equal housing lender, 1749 Mallory Lane, Suite 100, Brentwood, Tennessee 37027.

Starting point is 00:52:01 Hey guys, Dr. John Deloney here. Finding time to intentionally connect with your spouse can be hard. That's why I'm excited to announce that Money in Marriage Getaway is back! Hang out with me and Rachel Cruz November 6-8 in Nashville, Tennessee. You'll learn practical tools to better communicate, deepen your intimacy, and more. Plus, we'll dig into your questions with live Q&As. Early bird tickets start at $749 but hurry, prices are going up soon and this will sell out.

Starting point is 00:52:29 Get yours at ramsysolutions.com slash events. Well, if you are a business owner or you know someone who is, you know that running a business is hard. It's a lot of work. A lot of energy goes into that. And as you look back at the challenges that you face when it comes to building a business the right way, Dave Ramsey really kind of took a moment and said,

Starting point is 00:52:54 yeah, I've been through this journey and I wanna put some of these principles and what I've learned about building a business into a book. And so he has a new book out, it's called Build a Business You Love. You can pre-order it now for 29.99 and get over $350 of free bonus items. Thank you.

Starting point is 00:53:14 My gosh, which is early access to the ebook and enhanced audio book and instant access to the Entree Leadership Hiring Playbook. So you can order today at ramsysolutions.com slash store, or if you're watching on YouTube or listening on podcasts, we will put the link down in the description. All right, let's go to Claire in San Diego. Hi Claire, welcome to the show.

Starting point is 00:53:39 Hi guys, thank you for having me on. Absolutely, how can we help? So my question surrounding dating and finances, I'm kind of looking for advice you have on dating debt and things to think about for the future. I have a boyfriend who's a little older than me. He has a really stable job. He was down here in San Diego and we've been talking about moving forward in our relationship. Everything is really good. All our values align, our faith aligns. There's really good companionship, but it's come out that he has about 70k in debt.

Starting point is 00:54:14 And just the background that I come from, I'm not sure how comfortable I am committing to taking on that debt with some of the habits I've seen. He wants to be in a better place with his finances, but he does like to shop and go out and do a lot of things. And he's put about four years to be able to pay off that debt, but I feel like it could maybe be a little sooner. I'm not sure if I have the full picture. So I'm wondering what kind of questions would be good to bring into a conversation? What things to look for? what actions need to be taken or, yeah, any advice you guys have. All right, it's a, yeah, it's a great question.

Starting point is 00:54:51 Do you, this 70,000, was it, do you feel like he hid that in any way and it's just come out recently? Or was it a sense that you guys just kind of started talking about the subject and he just happened to say, oh yeah, I have debt, 70,000 worth. Was it more just so he...

Starting point is 00:55:08 Yeah. Was it more secretive or was it, no, we just ended up talking about the subject and then he told me? No, it was more talking about the subject. He had told me earlier in our dating relationship and just the timing of it, I didn't pry for numbers or anything. So now that we've been talking a little more seriously, I'm trying for numbers and it's around 50k of student loans and then about 20 to 30 in car payments.

Starting point is 00:55:36 Okay. Okay. So, yeah, I mean, I always, you know, I always think when it comes to relationships and debt, it's not always the debt that scares me. I mean, if you guys ended up going long-term, yeah, you would be helping pay the 70 grand off for sure if you guys got married. But again, the debt, I mean,

Starting point is 00:55:55 couples have tackled more than that, coming into a relationship. So I would not not marry someone because of that personally. But it's more the value system, kind of what you were speaking about earlier, that can raise some red flags. So I'm trying to get clear from you

Starting point is 00:56:09 because knowing that opposites attract and that is so normal. Okay, so Winston would probably describe me the way you described him that she likes to shop and she likes to spend money and Winston would save till the day is long and that's all, you know. And so there's going to be savers,

Starting point is 00:56:27 there's gonna be spenders, there's gonna be that, the person in the relationship that loves knowing every single number of everything and they have Excel sheets and they have the EveryDollar app and they, I mean, they're doing everything possible where the other one's like, oh yeah, we're on track, we're good, I don't need to know every single little detail, you know, that's the free spirit.

Starting point is 00:56:44 So there is gonna be a give and take and a personality tendency with money. So I'm trying to get a check from you. Is it just a different tendency and he just spends? Because he probably is more of a spender or do you feel like, no, it's bigger than that? Like there's a problem, there's an issue here. And that's what I'm trying to gauge from you.

Starting point is 00:57:04 What do you think? I think that's what I'm trying to figure out. I come from a family that's all savers so I feel like I haven't really experienced the opposite of that. I feel like it's a little bit sometimes like oh that little instant gratification of I just got this little knickknack but then sometimes it's experiences. He takes, I mean dating, he's taken me out to do some really fun things as well. So he has value on both of those things. And I'm just trying to figure out from him in a way that helps. Yeah, totally. So for a dating relationship, what that habit is.

Starting point is 00:57:38 Yeah, for sure. So I think some questions I would ask is, is that value standpoint that you don't want to be having someone that's going into debt to do these things, right? That you want the baselines covered and that's a level of wisdom and being out of debt, having an emergency fund, having savings, like all of that, that is wisdom and we want all of those first and foremost. And then if there's some extra that, yeah,

Starting point is 00:58:03 we can spend on top of that, but making sure with him like, hey, is living with debt in that lifestyle, you know, what does that look like for you? What's that value system? And if he really is like, oh yeah, I don't want it, you know, I want to be able to get out and I don't want to live with credit cards

Starting point is 00:58:18 and debt and all of that, then that's a checkpoint, right? It's like, okay, that's good. And then you can even ask them, because all spenders, I think, understanding our motivation, or I would say savers too, understanding the motivation of why you do things

Starting point is 00:58:32 gets to the heart of it. And so the motivation in that, and for spenders, sometimes the motivation is fine. And it's like, yeah, it's just kind of a thing I wanted. I saved up, I have the cash for it. I'm not under some illusion that this purchase is somehow going to make me happy for the rest of my life. You know, I'm not bought into this illusion

Starting point is 00:58:51 of marketing and all of that. Like I just wanted the thing and it's great. But then sometimes Claire, you know, as a spender and I can speak for myself, I ask my question a lot of, okay, Rachel, why are you buying this? And if I can be as honest as possible, it's like, I'm kind of bored and I want some excitement and that's why I'm doing it. Or I always ask myself, if nobody sees this purchase, if I can be as honest as possible, it's like, I'm kind of bored and I want some excitement and that's why I'm doing it.

Starting point is 00:59:05 Or I always ask myself, if nobody sees this purchase, do I still want it? How much of my motivation of having and buying something is for other people, not even myself, right? So getting to more the heart of the why behind it, I think may help you see either, oh yeah, that gives me some peace if you can have some level of awareness of why,

Starting point is 00:59:24 because the way we spend our money always is going to tell a story about ourselves. Right. So under understanding that or maybe Claire, you find out some things and you're like, oh, that feels like a slippery slope. Right. So I think through some of those conversations will be interesting. But I will say for you, it's going to be a little bit difficult. So give him some grace because you are coming from, like you said, you're a saver, you're raised by savers. And you're like, I don't even know what this alien, which is a spender looks like,

Starting point is 00:59:51 like how do they function and are they okay? I mean, so give them some grace there. But I think have some discernment around it, I think is important. Would he be willing to go through Financial Peace University with you and go, hey, I understand, like I grew up in a different context. I have, you know, I grew up learning

Starting point is 01:00:06 about how to manage money. It may be something he just didn't have. And if he's willing to learn and willing to get on a plan, that's a green flag. But if he goes, nah, I'm good, I'm gonna do my thing, that would be a red flag to pause moving forward in this relationship. Okay, yeah, I bought it up once and it was not brushed off.

Starting point is 01:00:24 I was like, oh yeah, that would be cool. So maybe it's something I bring back up. Okay. Do you know how much he makes? He makes about $140 a year. Okay. So he makes great money, which tells me- In San Diego though.

Starting point is 01:00:37 In San Diego, it doesn't go as far. Yeah. I was just wondering, is this on fire? Does he need to get rid of the car yesterday? Has he sort of had any sense of urgency when he talked to him? He has two cars. No, he has two cars.

Starting point is 01:00:51 He has a, his family history doesn't seem crazy great with money from what I've seen. Yeah. It's kind of like a little bit of living in excess and you don't really have them means to do so. Yes, yeah. That's a good observation. I feel like he's just kind of doing what-

Starting point is 01:01:08 He sees and what he knows. Yeah. What's familiar to him on that. The second car, he's said in the past that it's something he could easily sell if he wanted to and not have to make the car payment. He has two car payments and one of, like it's just kind of toys for him.

Starting point is 01:01:24 Exactly. And one's paid off, one's not. Yeah. Okay. But the second one's just a toy. I mean, again, I'm not trying to defend him by any means, because again, it could just be a mess, Claire, and you may be like, oh my gosh. But you know, like you said, he may be just doing what he has seen

Starting point is 01:01:38 and doesn't know a difference. So then another, you know, bucket, I would put not to vilify his family by any means, but to be like, hey, what are things that your family does with money that you like, and what are things that you don't like? You know, and ask them open-ended questions, and then seek his humility.

Starting point is 01:01:52 Is he willing to learn and do something different? If he's stubborn in something in a way, you know, again, that's more of the yellow-red flag, so there's some digging there, but just because he's a spender, Claire. I hope he's willing to change, because Claire is worth it. She is you are worth it Claire. This is the Ramsey Show. You shouldn't own a gun you're not willing to shoot. In moments of self-defense a Berna launcher lets you protect yourself in a non-lethal

Starting point is 01:02:21 way. That's exactly why Berna launchers were created. Everyone from parents and nurses to pastors and even special forces veterans rely on Berna to protect themselves and their families. I own several Berna's myself. They look like guns but they're not. They shoot a 68 caliber round kinetic or chemical irritant projectile that can disable a threat from up to 60 feet away and they're powered by compressed co2 cartridges so they're classified with paintball and airsoft guns but they're more powerful than those for

Starting point is 01:03:00 increased protection. Not to mention burner launchers are legal in all 50 states with no permits required, and because they're not firearms, they can be shipped directly to your door. Plus, Ramsey fans can get 10% off an exclusive bundle which includes a Berna pistol, CO2 cartridges, and ammo, and other Berna products like safety alarms, defense sprays, and body armor are also 10% off for our listeners.

Starting point is 01:03:29 Just go to Berna.com slash Dave to learn more. That's B-Y-R-N-A dot com slash Dave. Running a business is freaking hard. It's easy to get caught up in the daily challenges and fears that keep you stuck. That's why I want you to reserve your copy of our new book, Build a Business You Love, where we share the proven system that helped us break through those challenges and build Ramsey Solutions from a card table in my living room to a $250 million company in the process.

Starting point is 01:04:02 When you pre-order today, you're gonna get more than $350 in bonuses for free, including an enhanced audio book experience, early access to the Build a Business You Love eBook, and instant access to our hiring playbook so you can start transforming your business right now. Build a Business You Love, the essential guide for every business owner like you that wants to grow yourself, lead your team, and scale your business right now. Build a business you love. The essential guide for every business owner like you that wants to grow yourself, lead your team and scale your business. To reserve your copy, go to ramsysolutions.com slash store,

Starting point is 01:04:33 ramsysolutions.com slash store. Going to the phones, we have Paul in Washington, DC. Hey Paul, welcome to the show Hey, thanks guys. This is such an honor and you guys have been such a blessing to my wife and I as we got through financial Peace University. So thank you so much. Amazing. Yes, absolutely Well, thanks for thanks for doing it. Thanks for being a listener. How can we help? Yeah, so here's our situation Thanks for being a listener. How can we help? Yeah, so here's our situation. So my brother and sister-in-law

Starting point is 01:05:09 surprised us by opening a 529 for our newborn son. Oh, and at first we were yeah, first we were appreciative But when we asked how it works since we didn't really know much about the logistics of 529 They they revealed to us that we can't contribute since the 529 is under their name and that we would have to we would have to ask for permission, their permission for how the money is going to be later deployed. Now for us it doesn't really feel right going to my older brother to ask for money for my son's college let alone getting their decisions for our son's education. Yeah, oh yeah, 100%. 100%. This is crazy, Paul. Why would they do that?

Starting point is 01:05:51 Like, I don't understand why they wouldn't just open it up in the child's name and then hand you guys over the account. Why do they want control over that? That's kind of the part of the question that we're talking about today is number one, understanding 529. Okay. But also just more or less handling family logistics of this. Now, just to add context, I do work in a family business specifically for my brother, right?

Starting point is 01:06:14 So we're even, now we are planning on changing jobs eventually. Now, of course we're thinking that we're creating a situation where the 529 almost creates a financial dependency on them that might create future tensions down the road. So ultimately, we want to know your guys' thoughts about family members opening 529s for their relatives, in this case, Matthew, and what you think we should do.

Starting point is 01:06:40 So yeah, because we're trying to, all these are great people, right? This is our family, we love them. But we want to make sure that we're doing the right thing too with setting up for our son so that he has the liberty and us as parents the responsibility to help them. 100%. Yeah. So that's our contact. Yeah. I mean, no, your line of thinking is, is spot on. Again, I go back to,

Starting point is 01:07:08 it's so interesting to me that they want that level of control because you can open up a 529 in a child's name and you give all the rights to the parents and then the parents just handle the account over there, right? I mean, like that does happen. Family members do that. So I don't understand why they still want control over it. Yeah, because we did have a conversation with them,

Starting point is 01:07:25 first thanking them. And we did ask them if they were able to switch it over from their name into our name, so that we would just take control from there on out, kind of like give the keys to the card to us, which they declined that. And they insisted that this was their gift and they wanted that.

Starting point is 01:07:42 But are you telling me is your child the beneficiary on that account? Our child is the beneficiary. Okay. Okay, got it. Cause you said they opened it in their name and I went, wait, what are they putting themselves with the beneficiary?

Starting point is 01:07:55 But no, your child is the beneficiary but they are the owner of the account. And that's the part that gives you pause. So here's what I would do. I wouldn't count on it. I just want to accept it. Anyone, anyone can open an account for anyone. And so that's the thing is like, you just go, hey, I'm going to ignore it.

Starting point is 01:08:08 If there's money there and they choose to give it to your son, wonderful. But I would plan for your own child's college and act like this is gravy on top if it ever comes to fruition. Sure. Okay. Okay. Yeah. Ultimately, yeah, sorry, you go ahead first.

Starting point is 01:08:24 No, well, yeah. I mean, it's, it's so, um, you know, the, it's Paul, gosh, the strings attached element. That's what I'm trying to get at is the element. When it comes to families and giving gifts, right? We talked to a lot of people on the show and there was a fine line between enabling. Some people call and they're like, Oh my gosh, my sister still needs money because she can't hold a job. Am I enabling her or am I helping her? You know, like that's the conversation. But when it's over here with just a gift and they say, yeah, we just, we want to be able to help our nephew, the healthiest way to do that is no strings attached. That I am giving

Starting point is 01:08:58 this to you. I don't need control over that anymore because it's a gift. It is now yours. And because it's in your child's name, you as the parent should be responsible for that, right? So your knee jerk in this, and you're exactly right, that gets very messy, especially if they are wanting a say over how he's gonna use it when he's 18. I mean like, oh, how?

Starting point is 01:09:20 What happens if he goes to a college they don't like or gets a degree they disagree with? Now it's awkward, So for those reasons. And they're at the parents. Yeah. I wouldn't worry about it. You can have multiple 529s in a child's name. So I would open one up that you guys control

Starting point is 01:09:32 and I would fund that. And if people wanna gift money, have it funded in there. And if they wanna put money in this account and they wanna give it to your kid one day, that's great. But again, I wouldn't count on it, but I also wouldn't be like, I would let go of the resentment over this. And, you know, unless you think there's malicious intent, you know, it might just be them going,

Starting point is 01:09:50 Hey, we want control over this. If we dumped the money in. I understand. Now, one other aspect to this is should we, uh, have a mature conversation with them and decline the, uh, 529 offering now, just because I don't want this thing to turn into a mess later where it grows up to maybe a good size, which then they become resentful that they put in all this work and effort for their nephew.

Starting point is 01:10:15 Right. Only to have the parents later. Well, here's the thing. You can change the beneficiary anytime. So if your kid doesn't use it or they have whatever kids, they have grandkids, other nephews, they want to change it to, that's their right as the owners of the account.

Starting point is 01:10:28 And so it's nothing for you to decline. If they offer it and you don't want it, then that's on you. Okay, you wouldn't have a conversation, George. See, this is where George- If it was my older brother, I'd be like, hey man, this just feels weird. Yeah, I would sit down and have the conversation, Paul.

Starting point is 01:10:40 I would, and just say, hey yeah, it just, it's, and put it on you, right? It's not, it's not, oh, well, you're doing this. I don't feel comfortable as Paul the dad. Just, I don't feel, yeah, I don't feel 100% comfortable because I don't know what the next 18 years is gonna look like for my child. And I just wanna be able to know that number one,

Starting point is 01:11:01 college is funded and that as parents, like we're gonna be able to do that and we're gonna do that on the side. And depending on what he wants to do that number one, college is funded and that as parents, like we're gonna be able to do that and we're gonna do that on the side. And depending on what he wants to do with that money, I want us as a family unit to be able to make those decisions together and not involve you guys in all of them. And so that's really what we're setting up for our family.

Starting point is 01:11:18 Thank you so much for the offer. If you guys wanna continue to put money in there or it just sits over there, that's totally fine. And you know, maybe at 18, like he may use it. He also may not. I don't want to tie my son to this either. So if you guys emotionally are great with it, have an empty hand and do it,

Starting point is 01:11:34 say exactly what George said, that if he doesn't end up using it in this account, you can actually move actually $35,000 over to a Roth IRA. There's an option there, or move it to another child in the family. That's an option, but I want all of this just to be said out loud As we start this and that's that's what we're feeling and thinking but thank you so much I mean, that's so that's so kind of you guys to even offer but

Starting point is 01:11:55 But yeah, but I'm not a hundred percent comfortable with every element of that deal Yeah, you guys are the best this was extremely helpful and gave a lot of clarity to a hopefully not complicated family situation. Yeah. Thank you so much guys. Yeah, absolutely. Absolutely, yeah. That's an interesting one. Yeah, I just, I wanna know what's underneath all of this.

Starting point is 01:12:16 Or is there any kind of like sibling, you know, he's in a family business with his brother. And so there might be more to this that we can, elements of even that. Probably need to unpack in a therapy session versus the Ramsey show, but there might be more to this. Yeah, there need to unpack in a therapy session versus the Ramsey show But there might be more to this. Yeah, there could be a hundred percent. Yeah, I mean we get but best case It wasn't malicious and they just go well, we're funding it

Starting point is 01:12:32 So I feel like we should have a say and that's okay to say no, we're not we're not comfortable That feels so weird though George if you if I can imagine saying that to a niece or nephew like I'm funding this like my brother loves our daughter William and Lydia, but I want to say over what Lydia is gonna do. I don't know saying that to a niece or nephew. Like I'm funding this. Like my brother loves our daughter. For William and Lydia, but I wanna say over what Lydia's gonna do. I don't know, like that feels so, I don't know, that feels so odd to me. Yeah, if my brother opened an account for my daughter

Starting point is 01:12:54 and said, well, you don't get a say, and I get to control where this money gets used and how, I'd be like, no, then we're good. I mean, yeah, and especially a 529, cause it's for education. It's not like it's this big trust fund and it's like, hey, I want to make sure the 18 year old is like semi mature before they get this money. But from a character standpoint, it can only be used for education.

Starting point is 01:13:16 So I'm like, I don't know, there's not much you can like screw up there. Yeah. Unless Paul's, you know, I'm kidding, Paul, I was going to say, unless the brother is like, oh, Uncle Paul, you know, he's not good with money, but I think you are, Paul. So I trust you in that. We need the brother online to go off. He's gonna go to a liberal arts college.

Starting point is 01:13:33 I'm not gonna give you that. We should start a new show, the Family Conflict Show. Hey, Paul, we got your brother online. That would be amazing. The surprise. Come on out. You are the uncle. That's a little too Maury for me. Maury, Maury.

Starting point is 01:13:46 It has a little bit of that feel to it. Oh man. Good times. Well, Paul, I hope that helps and I hope like George said that it's- Open up your own five. Here's what I say, Rachel, go fund yourself. You like that? That's as edgy as I get on a family friendly show.

Starting point is 01:14:01 You're crazy, George. Go fund your own kids 529 and not worry about what everyone else is doing. These days the internet is chock-full of so-called investing advice from random goobs with zero qualifications. Listen folks, you deserve guidance from someone who knows what the flip they're talking about. That's why I recommend the Smart Vestor program. SmartVestors can help you find a professional financial advisor who can teach you to make your own best decisions with your own money. Get

Starting point is 01:14:36 connected at ramsysolutions.com slash SmartVestor. Again, ramsysolutions.com slash SmartVestor. Ramsey Solutions is a paid non-client promoter of Again, ramsysolutions.com slash smart vester. Ramsey Solutions is a paid non-client promoter of participating pros. Learn more at ramsysolutions.com slash smart vester. All right, let's go to Savannah, Georgia, and we've got Blake on the line. Hi Blake, welcome to the show.

Starting point is 01:15:02 Hey, thank you guys so much. Man, I'm so excited to talk with you guys. Thank you. Oh, so glad you called. How can we help? Yeah. So I'm calling you guys today because I really need a little bit of guidance with this part of our lives.

Starting point is 01:15:16 I've been married for seven years. We got a daughter. She's about five years old. And we were living as missionaries in South America. And unfortunately, we had to come off the field around July last year. And so we've been readjusting to life here in the States, which when we were gone and came back to the States,

Starting point is 01:15:34 we were kind of blown away at some of the prices because they weren't the same as they were years ago, right? So whenever we decided that it was finally time to, you know, we got readjusted, we both got jobs. My wife makes about $31,000 a year. I'm making about, a little embarrassed about it, but I'm making about $1,600 to $1,800 a month.

Starting point is 01:15:58 And so the only, the debt that we have, including our vehicle right now is under $15,000 and we did the every dollar budget as well. But the only hope I have of, I mean right now, the only hope that I currently see if I stay at my current job, which is as a custodian, you know, in December I'll have an opportunity to adjust all of our benefits. And when I cancel everything out, I'll be receiving about $580 extra a month. So we'll get around to the $2200 to $2400 a month for me. My wife will stay about $2100 a month.

Starting point is 01:16:39 And so the only other options I have right now is to serve as a substitute. And the only thing I've been doing extra so far is to, I've been trying my hand at door dashing and sometimes, you know, that's not been the very best ideas, but I'm not really sure what to do because the only degree that I have are, you know, from my Bible college. So, we've got a master's in ministry. How old are you guys Blake? I'm 34 and my wife is 29. Okay, so great.

Starting point is 01:17:12 Well, let me first just say, I would not be embarrassed by that amount. I think that you're doing hard work and you guys are just shifting what life has looked like. I mean, up until this point, yeah, you guys were living one life, you're coming back and doing something else, right? And so that does not speak to who you are as a person.

Starting point is 01:17:33 And so much in our world, our salaries and our income and our net worth becomes our self-worth, right? That is such an American mindset. And so I understand it feels defeating because you're like, I'm working really hard and I feel like I'm not making enough to support my family. So all of that tension, I'm so glad to hear because also Blake, we get calls on the show and they're like, my husband won't go to work

Starting point is 01:17:55 and we don't have enough to make ends meet. You know, and you're like- Because they won't swallow their pride. Yeah, they won't swallow their pride and just do what you're doing. So like, there's so much upside for you, Blake, even from just the attitude of how you're approaching all of this. So like, there's so much upside for you, Blake, even from just the attitude of how you're approaching all of this.

Starting point is 01:18:06 So just hear us say that first and foremost. And who you are in your character, honestly, is what takes you far in life. It's usually not a college degree in which you got your degree in, quote unquote, because half the people don't even use their degree. And so, yeah, so I think there's a lot of upside. So I'm curious, Blake, for you, you know, you're 34,

Starting point is 01:18:25 like what would you want to be doing at 40? Like what is a job, what is a career path, what is a line of work that gets you excited? Right, so the thing I've always been excited about was when I was 15, man, that's, for us, like God's been a big part of our lives and he saved me when I was 15. And the most exciting thing in the world was

Starting point is 01:18:45 seeing missionaries come by our church. And I'm like, man, I answered that call to go. Well, when we had to come off through a lot of tears and stuff, like we couldn't go back. And so I don't think right now that's an option, but I would love to be in ministry, regardless of what we're making. But the only thing that I've ever done that I've enjoyed was putting what I've learned into other people. I guess that would be called mentoring. But I'm not really sure work-wise what the answer to that would be. I'm sorry.

Starting point is 01:19:14 Okay, no, no, you don't have to be sorry at all. We're gonna give you a resource to help with that. Before we leave the call, our phone screener is gonna pick up and give you Ken Coleman's book, Find the Work You're Wired to Do. It comes with a Get Clear Career Assessment. I want you and your wife to take that

Starting point is 01:19:27 because I just think you guys can do better. You need to do better for your family. And that's gonna mean finding a career you can sink your teeth into instead of just odd jobs. And let me also tell you this, any job can be a ministry. And I know that you can work within the church system and that can be a real blessing, but man, there is so much ministry to be done work within the church system and that can be a real blessing. But man,

Starting point is 01:19:45 there is so much ministry to be done outside of the church too. And I want you to know that there is immense purpose regardless of where the Lord takes you. And I hope that it just encourages you to look beyond the scope of just, well, if I'm not a missionary, who am I? What am I going to do? Right. Yeah. Yeah. Thank you for that. I'd love to take the assessment. Yeah. Have you guys, you said you did your every dollar budget. I'm curious, how much does it take to run your household each month? So, I know we're about, the last time I looked at it about three weeks ago is the first time that I did it. And that's how I got connected with you guys. We're about $734 in the red. Okay. And so if we're bringing home about $3,800 a month,

Starting point is 01:20:29 then we're in a hole about, I guess about $4,500 from where we're renting right now. How much is your rent? So the rent's $1375. And this was the cheapest thing we could find in our area. Yeah, I mean, it's not expensive. Yeah. So I'm curious, like, is there anything in the area

Starting point is 01:20:47 that for the meantime, that instead of trying to pair, cause you could, you could pair two or three side hustles together, it's just gonna be exhausting. And that's not sustainable long-term. So I'm just wondering from your primary income, is there anything out there that's paying, cause right now you're making what, 27? Yeah, you're making 20K a year right now, which is about 10 bucks an hour after taxes. Yes, sir. So I'm wondering You know anything working at walmart you're going to make more than that. I mean, but is there is there anything in your area?

Starting point is 01:21:16 that Um that yeah that you're able to make 40 50 grand Um for so i've been looking for, you know, ever since July and I've been trying to find that answer. The only things that we've got for entry level work is about 1650 an hour. And right now we're getting about 1675 because we put into benefits, unfortunately, at the school and that won't change till next year when we can cancel those. All the entry level work is about 1550 to 1650, unless you specialize or have a degree in something

Starting point is 01:21:52 or have prior experience to it. Yeah, and I'm even wondering if there's people in your area that, yeah, that are that, cause Ken Coleman talks about this a lot, that so much of our work and getting that next step or that next job is more about the people, you know It's not about the application and so yeah in your in your realm of people Just maybe your church community even asking around there. Yeah, there's a business owner and they need admin work, right? I mean like anything like that or even some remote jobs Blake which might drive you nuts being in the house

Starting point is 01:22:23 I'll tell you I don't know because you're probably an active guy, but yeah, if there's anything, yeah, within your community that I think that's gonna be your best bet, Blake, between now and the next year, instead of putting together what you can, and you're gonna have to do something soon because you can't be in the red for long. Can you guys cut your expenses?

Starting point is 01:22:44 It still feels like there's a lot, I mean you still have thousands more in expenses every month even beyond your rent. Sure, so when we went to it we actually adjusted it to what would be the most ideal situation for us and we completely cut out every extra spending that we were doing. How much is the car payment a month? So that one is 275. We owe about 8,300 more on it. And I don't think we could even, that was another lesson learned, but I don't know that we could sell it for enough.

Starting point is 01:23:18 You're underwater on it. Yeah, that was underwater. Yeah, is that the only debt you guys have? Other than that, we just have four credit cards. So since we started your budget, we paid off my lowest one, about 500 something. We paid half of my wife's lowest one after that. So we're doing the snowball.

Starting point is 01:23:38 Okay, that's great. You guys are making progress. Okay. Yeah, that's great. I mean, yeah, in between, you know, now and March, I probably would be doing some side hustle stuff. And if there's anything that you can do that goes straight to the consumer,

Starting point is 01:23:52 we always find that you're gonna make more doing that. So even if that's tutoring, you said that you're a substitute teacher. So if you can even tutor, doing something like that for the meantime, but looking for that main income to go up is gonna be the key. And kind of getting you on that right path, we're going to give you, yeah, Ken Coleman's

Starting point is 01:24:07 career assessment. So make sure to do that, Blake. And if anyone else is new like Blake and you want to know where you are with the Baby Steps, make sure to go and check your progress and receive a personalized plan. And you can click the link in the show notes, which is titled, Are You On Track With The Baby Steps? And complete that quiz. And this hour is up, George. And we'll see all of you guys live on radio and in the Ramsey app coming next. Thanks for watching!

The Ramsey Show - Money Is a Tool To Create a Life You Love

There aren't comments yet for this episode. Click on any sentence in the transcript to leave a comment.