The Ramsey Show - Surviving the Money Storm Starts with Tough Choices

Starting point is 00:00:00 Hey guys, it's James Childs, producer of The Ramsey Show. Hey, this week Dave and the personalities are living it up on the Ramsey cruise, so we've put together a compilation of some of our favorite calls and segments from the last year. Regular shows are back next week. Hope you enjoy. From Ramsey Network, it's The Ramsey Show, where we help people build wealth, do work that they love, and create amazing relationships.

Starting point is 00:00:33 I'm Jade Warshaw. Next to me is the magnificent Kenneth Coleman. Wow. Magnificent and Kenneth in the same sentence. It's going to be a day. It's going to be a good day. We're taking calls all afternoon long, your life, your money. Hit us with all the questions that you have and we will hit

Starting point is 00:00:49 you with an answer, a solution, a way forward, or we'll just spitball creative ideas with you. Whatever it takes. The phone lines are open. Triple 8, 825-5225. Let's get involved. All right, let's go straight to the phone lines. We got Joe. He's in Anaheim, California. What's going on, Joe? Hey, how you guys doing? Doing great. How are you? Doing good, doing good. I've been watching you guys for a while, and I got a quick question.

Starting point is 00:01:17 I'm just looking for a little bit of affirmation here. Okay. I have a girlfriend of about a year and a half, and we do live together, she asked me actually last night If I could loan her money to pay off a debt that she has on a credit card That's not a little bit that's a lot well, yeah. Yeah. Oh, yeah. Yeah. Yeah, not a little bit. I mean myself, I'm... That's not a little bit. That's a lot. Well, yeah, yeah, oh yeah, yeah. That's not a little bit.

Starting point is 00:01:49 But yeah, she had asked me that and I gave her, I told her I would call you guys. I kind of know the answer. I'll get back to you on that, babe. Let's put it on Jade and Kenneth to see what. Sure, sure. Okay, so it's $12,000. Did you say it's for a credit card? Yeah, yeah, for a credit card, sure. Okay, so it's $12,000. Did you say it's for a credit card?

Starting point is 00:02:06 Yeah, yeah, for a credit card, yeah. And just to clarify, this is a loan. So when you say the word loan, that makes me sound, that makes it sound like somebody's got to pay it back. Got to pay it back, yeah, absolutely. Absolutely. She had gotten to a little situation, I guess with her last partner he ended up using it without her permission and

Starting point is 00:02:31 That's how she ended up being in that situation. Can I ask you this? How do you feel how would you feel being in a position where your girlfriend owes you $12,000? That's the thing too cuz I I've been looking to you guys for a while And I remember one thing Ramsey says is, you know, dinner tastes a little different, you know, when you're sitting across from somebody that owes you. And I know I wouldn't be the one owing anyone, but like just the fact that, you know, that that kind of tension would be there, I wouldn't necessarily feel too comfortable with that. Yeah, Joe, how's that going to feel when she starts missing payments that she owes you?

Starting point is 00:03:05 That's gotta be weird. Hey, we're going to Red Lobster tonight. How's that payment plan coming along? But she's still got her nails done and still got her hair done. Oh, yeah. Joe, can I, Joe, listen, I appreciate that you told your girlfriend you were gonna call us, but what was your gut reaction when she hit you with this idea? My gut reaction was, I'll be honest,

Starting point is 00:03:29 I was like, okay, like am I in a position to do so? Yeah, like yes, like yes. And can I have a girl like that? Yes, but I just think like, just like character wise, I really feel like, attacking debt is a character-, a character built it too. And I, you know, I definitely want us to grow in that regard. I want her to take her finances serious too, as well.

Starting point is 00:03:51 Joe, Joe, Joe, listen to me, Joe, Jayden, I are on team Joe. Okay. Why don't you stop spinning and just tell us how did you feel when she hit you with that? Did you want to do it? Yes or no. I got it. I got it. Uh, yes or no? I got you, I got you, no, no. All right. There we go, there we go.

Starting point is 00:04:09 I'm with you, Joe. And there's nothing wrong with that. Yeah, you're not a bad guy. There's nothing wrong with that. She, you know, I do have more questions just because I wanna know, and I want the people to also get a clear picture of this. You know, first off, we're not big on loaning money here.

Starting point is 00:04:24 You know, to a friend, to a family member, somebody loaning money to you, debt in general is just, we're anti-debt here. So now if you called and said, hey, she's asking me if I can give her this money, that might be a different conversation. And you're like, I have it to give. And if I don't ever receive it back, it's no big deal.

Starting point is 00:04:43 That might be a totally different conversation, but the aspect of loaning it, you're right, it does put a different taste in your mouth and it's gonna make the whole relationship, the power shifts, right? You become the lender and she becomes not the lender. I gotta ask a question, Joe, cause Jade's here and I love getting

Starting point is 00:05:02 the female perspective on this. Are you worried about her reaction if you tell her, because I think you called us to get us to go, well, this guy, this guy, and this gal said this. Are you worried about what her reaction is gonna be if you tell her no? Be honest. She can be, yeah, no, she can be definitely emotional, you know when it comes down to things like that Emotional like crying or emotional like I'm gonna hit you with this cast iron pan Maybe a Santa I don't know about the cast iron, but she probably do something like that

Starting point is 00:05:42 Yeah, but I think that's important. Yeah, yeah, no, no, it definitely is. I know like she's not the type to like flare up if you tell her no, but I just wanted to um, yeah, I just want to get like affirmation on that just to say like, you know, like, hey, you know, I mean, me being the position I'm in is because I've listened to these, you know, I've listened to these people and um, you know, I really want to, you know, And I really wanna, I'll call them and maybe they can give you some more clarity too on my standpoint. Are you gonna marry her?

Starting point is 00:06:12 That's my question. Yeah, that's definitely the plan for sure. Okay. Does she know that? Yeah. Does she know that? I wouldn't say that, I mean, well, we've talked about it, but as far as like a timeframe on when we're going to get married, that hasn't been... All right, so here's the deal.

Starting point is 00:06:29 So since you called us and I know where this is going, you need to give her a legitimate explanation as to why we think what we think and if you agree with us. So the reason that we want to keep this separate is you two are not married. Now, if you go down to the courthouse tonight, and I'm not trying to get you to do that, but all of a sudden this debt becomes your debt, but right now it's her debt and the relationship needs boundaries and this is because you believe in a healthy relationship and so you need to explain to her that that is your debt, not my debt and the minute that I give you money it changes our relationship and I don't want that because I'm looking long-term.

Starting point is 00:07:06 Did I miss anything on that? I agree exactly with Ken. There's a protection for both of you, legal speaking, when you become married. And so if nothing else, this is a great time to start that conversation of what, define the relationship. Now's the great time to start talking about that.

Starting point is 00:07:23 And I think it will reassure her to say, you know, if the time comes and you agree that we should be married as I believe that we should be married, then I am happy to take on your debt. It would never be alone. It would be us working together. And, you know, I look forward to that day,

Starting point is 00:07:38 but unfortunately we're not there today. I have a question for you, Jade. And she's, this is for you, Joe, but it's to Jade. I I overthink everything so the giant asterisk here is I overanalyze everything. Okay. My brain right now is going if he says that which you and I are on the same page, does she put pressure on him to get married and does this fast forward a marriage proposal? I'm a little nervous about that. I hope not. Do you see, what would you say he needs to guard himself with? I hope not. If you sense that, if you sense that now all of a sudden she's trying to, you know, rush

Starting point is 00:08:12 you then I think that could be a bit of a red flag. That's good. Because that's what I'm looking out for. Now let me then ask you this question. How long have you been dating? Because if you've been taking her for a ride for five years then she might. It's been a year and a half. Okay. I mean, in my mind, now is a good time to start talking about it.

Starting point is 00:08:31 If she does say, well, you know, Joe, I've been trying to get married for the past, you know, six months and you're the one stalling. Like if she starts saying stuff like that, then you have to be open to the things that she's saying as well. At the end of the day, if you both want to be in a married relationship, make steps towards that. And then to Ken's point, that's when things become one French, we, we, that's what Dave Ramsey would say. This is the Ramsey show. As an investor and a person of faith, when your mutual funds and ETFs put your money

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Starting point is 00:10:32 welcome back to the ramsay show and can call me jade warsaw joins me the phone numbers tripple eight eight two five five two two five tripple eight eight two five five two two five let's go to indianapolis indiana where zackary joins us zackary how can we help today? Hi, how are you guys? We're doing great. What's going on? So, I'll cut to the chase. Monday I lost my house in the house fire. What? For at least four months. Yeah. Oh my gosh. What do you mean at least for four months? Was it total? It was contained to one room, thankfully, but we had a lot of stuff in that room that the room is completely gone. They have to completely gut it and reconstruct it, I guess.

Starting point is 00:11:12 Okay. Nobody was hurt. No, the dog was inside, but thankfully they got him out. Okay. Okay. So pup is okay. And when you say it's only one room, is that downstairs, upstairs, What was in the room? It was our downstairs master bedroom. Um, we were actually supposed to sell the house four days prior. Um, well, four days after the fire had happened.

Starting point is 00:11:38 But that's not happening anymore. Um, so thankfully like a lot of my stuff was packed up and ready to go. But like my wife's entire wardrobe Everything like our mat our bed our newborn son's bed and everything is oh my god Where were you guys when this happened? I was an hour away at work and my wife was at work. Oh my gosh and that your newborn son He was that a grandparent. Oh my gosh, thank goodness. But the rest of the house is okay.

Starting point is 00:12:09 Yes, my stepdad was driving by when it started to smoke really bad, so he caught it. What happened, what caused the fire, do they know? It was one of the outlets by our bed. They're not exactly sure, but they think maybe a wire came loose and touched the insulation or something, or a mouse tube on it.

Starting point is 00:12:29 Oh my. That is crazy. Well, I'm so glad everybody's okay. Well, a couple of things to be grateful for. Obviously, you guys weren't there, your wife was not there, your baby son, the dog is okay, my goodness. And your father-in-law's driving by.

Starting point is 00:12:44 Yeah, and I love that. And again, grateful that it's just the room and four months from now you've got a rebuilt master. Now I know all of the other things that come with that are awful, but all things being equal, this is, you dodged a major, major crisis. Yeah. Yeah, definitely. All right, so how can we help today? So we were planning on selling the house because my wife bought it before me and her were ever together and it is a nightmare of a house. Foundation issues and electrical issues. Yeah. So we were really wanting to get out of it. We were buying a new house closer to my parents and it's a lot nicer house, but did you already make the offer?

Starting point is 00:13:29 Yeah, but we are doing a contingency by Okay, good. I'm gonna lose that house now that we have to wait another four months. Yeah We have just started the baby steps. We've got about $85,000 in consumer debt. Okay. We don't have much savings, especially after the fire now. And then- Whoa, whoa, whoa. What have you been doing? Yeah.

Starting point is 00:13:57 We just started it, so we had the emergency fund, but now with the fire and stuff, we- The $1, dollar emergency fund or yeah yeah thousand dollars okay so um here's what I think so where are you staying right now right now we're at my parents okay you're at your parents you've blown through most of your thousand dollars what do you have left right now we've got I want to say well she actually made an extra car payment so we're waiting for that to come back.

Starting point is 00:14:29 We'll have about 13 in our account but we have bills and everything and I do a ton of driving for work so I have to leave at least five to six hundred in there for gas. Okay, so okay. Is insurance going to cover the total rebuild or is there going be more cash you're gonna have to come up with? Yeah, they're gonna cover it, but they are kind of dragging their feet, so. Right, okay. I think you're a little new to the baby steps,

Starting point is 00:14:53 and so I kind of wanna reset and get everything on so that you and I are at least on the same footing kind of going forward. I hate that this happened to your house, and I hate that you guys had a plan and this just threw wrenches all up in that plan. I hate that this happened to your house and I hate that you guys had a plan and This just new wrenches all up in that plan However in one way like Ken said you dodged several bullets here And I'm gonna add another bullet to the list that I believe that you that you dodged now looking at your financial situation

Starting point is 00:15:18 Fire aside now is not the time for you guys to buy a house Yes, I agree. You know I originally wanted to rent, but we live in a small town and leaving the town is not an option for us because of my wife's work and that's where our babysitting situation is located. And there is no places to rent that would it be the same amount as what our mortgage was going to be

Starting point is 00:15:46 that has the space for two kids, us and the dog that allows dogs. There was one place that was available and we applied and we got denied because of our credit and then it went off the market like a week later. So. So OK, so to address that, unless you were going to unless by selling this house, let's pretend the fire didn't happen for a minute, unless you're going to have this this huge amount of equity that was going to allow you to get into the next house and pay off, you know, this debt or something like that, that would have been the only way it would have worked out.

Starting point is 00:16:19 And if you had called us prior to that, I would have said you could just got to keep looking, look for the right rental, because something will come on the market. That's what I would have said, you could just gotta keep looking, look for the right rental, because something will come on the market. That's what I would have said to you in that situation. But where you're at now is, okay, insurance is gonna cover the rebuild of the master bedroom. You know, you guys are in a place that, you know, hopefully you're not spending a whole lot

Starting point is 00:16:38 staying with family, but you are gonna spend some, but you've still got, you know, you're still working. So the income is coming in there. We've got to prioritize this debt. And that's gotta be the number one thing because technically Zachary, when you go to buy a house, you want all of your debt paid off. Then you want to have saved up three to six months of expenses.

Starting point is 00:16:58 That's not talking about a down payment. That's just you having money, you know, when you move into this house. And then it's like okay I need a down payment so you guys were quite far from being there when you sold the house what was it going to bring? We were going to get about 15,000 in equity and then my sister was also going to give a gift for a down payment as well to help us with that. Okay. And when you got that gift from your sister, what percentage wise was that going to be towards your next down payment?

Starting point is 00:17:30 We were going to be using an FHA loan, but it was going to be roughly 12 to 15. Yeah. Yeah. I think in many ways, this was a blessing in disguise because I think you guys are about to get in way too deep. You always want to make sure that you're putting at least 5% down on a house. You want to make sure it's no more than 25% of your take home pay. These are the things you want to make sure of. And going forward now is just not the time. And hopefully what I would do, what I would do for you guys, if the house that you're in is a nightmare, obviously there's electrical things that need to be fixed. Obviously there's other things. Those are things that you might have to shell out some

Starting point is 00:18:06 money to fix in the meantime because the solution and can we see it all the time? My car broke down, I'm just gonna trade that in and trade up and get a new car with payments because we don't have the $2,000 to fix it so we get a $20,000 car right? And the worst, I said this to Dave on Friday, the worst thing is and I'm not saying that this is you, but you buy a $500,000 house, but the AC breaks and you don't have $5,000 to fix it, right? It happens all the time.

Starting point is 00:18:32 So push pause on home buying, it's not the time. Rebuild, get your life back on track, get the things fixed in the home that's gonna make it a safe place for you to live. That's right. And hey, let's look at the positive on this. I think Jade's right and I think I'm gonna give you just a little bit of a, I think,

Starting point is 00:18:51 hopefully a little mindset hack here. You know, you get a new master bedroom. Hey. You know, in the sense of, you know, did you lose some stuff? Yes, that stinks. She lost her wardrobe. That's awful.

Starting point is 00:19:01 All those things are just awful. But baby's safe, dog's safe, you're safe. You know what? You had a really old master bedroom. Now you get a new master bedroom. And I like Jade's pressing pause right here and just kind of going, you know what? Life just threw us a curve ball, but what? Let's hit the curve. Yeah. Yeah. You know, like I know, I'm stuck in this baseball metaphor, but stay with me. You know, curve balls are meant to strike people out. But let me tell you something,

Starting point is 00:19:28 really good hitters know how to hit a curve. And if you hang a curve, these people put it out of the park, they smash it. And I think right now, I think for the coaching you just got from Coach Jade over here, I think you guys can take this curve ball that life threw at you,

Starting point is 00:19:43 and you absolutely hit a grand slam and come out of this thing way better off. So please listen to what she said. I think she's absolutely right and I think you guys got a second chance. Not fun. Not fun how you got it, but nonetheless, a second chance. So there you go. All right, don't move.

Starting point is 00:19:59 She's Jade Warshaw. I'm Ken Coleman. We're here for you. This is The Ramsey Show. Statistics show that half of Americans don't have enough life insurance, or they don't have any at all. I don't understand this, John. Why don't people want to take care of their family? They think they're not going to die or something? Well, I used to be one of those guys, I didn't even this, John. Why don't people want to take care of their family? They think they're not going to die or something? Well, I used to be one of those guys, I didn't even think about it.

Starting point is 00:20:27 And one of my buddies said, hey, the only reason to not have life insurance is if you hate your wife and kids. And I immediately went and got term life insurance. That's a gut punch. For decades, Dave, I've sat across people who've lost a spouse, they've lost somebody important to them.

Starting point is 00:20:41 Me too. And they don't know what to do next. Terrifying. You're going to have a crisis here. You know, you got two options while you're sitting and talking to a young widow. She's concerned about how she's going to invest all this money properly and not mess this up, or she's concerned how she's going to eat tomorrow. That's exactly right.

Starting point is 00:20:54 These are the two options. It's saying I love you to your family. Term life insurance. Jeff Zander and the team at Zander Insurance makes it easy and affordable. I've used them personally for 25 years. They're the only people I trust. Go to zander.com or call 800-356-4282. The Ramsey Show continues. I'm thrilled to have you with us.

Starting point is 00:21:15 I'm Ken Coleman. Jade Warshaw is alongside the Ramsey Show host, Ken Coleman. He's the host of the Ramsey Show. He's the host of the Ramsey Show. He's the host of the Ramsey Show. He's the host of the Ramsey Show. He's the host of the Ramsey Show. He's the host of the Ramsey Show. He's the host of the Ramsey Show. He's the host of the Ramsey Show. He's the host of the Ramsey Show continues. Thrilled to have you with us.

Starting point is 00:21:27 I'm Ken Coleman. Jade Warshaw is alongside. The phone number is 888-825-5225. Let's go to Nicole, who joins us in Memphis. Nicole, how can we help today? Hey, I was just trying to see if you guys could help me do the mess that I'm in. I don't know if I'm cursed or what, but I'm in a lot of debt and I'm a single mom. And I'm be close to retirement age shortly and I just I don't know what to do.

Starting point is 00:22:00 OK, how old are you? I'm 46. OK, and what's going on? Tell us some more details Okay, so last year my goal was to own a home and I know about debt to income ratio My highest debt would have been my car note, which was 772 long story short with that I end up making a bad deal, end up at 615 still, but no gap insurance. Since then the job that I had, I have now lost.

Starting point is 00:22:34 I have a new job, but it's $3,800 less. That's a lot. It is per month. Yes. And I'm struggling right now. I'm close to addiction. I'm about to, I'm close to about to lose my car. So tell me, tell me what you're making now.

Starting point is 00:22:54 I'm averaging about $12,000 to $14,000 a month. Barely making it. Oh man. Yeah. Okay. $12,000 to $14,000. Tell us what your rent is. My rent right now is $980,000, but it's behind and I'm close to eviction.

Starting point is 00:23:08 It's about $2,700 plus a $350 fee or a bare $950. It's crazy. What do you do for a living? I'm a barber. And before that, when you were making the $3,800 more, what were you doing? I was still a barber. I was working at another barber shop and I was let go. What was the difference? Is it just the way that they do it and they weren't the old place was sending more clients your way? Tell us. I had more clients. I was still on the low end. I was still on the low end, but I was still making,

Starting point is 00:23:46 I was making weekly pay. This is only every two weeks, and I'm averaging about 500 every two weeks, or a little over. Not a lot at all. And is it just a salary you get, or is it based on the number of heads you do? So it's basically 50% commission,

Starting point is 00:24:02 or $12 an hour, whichever the greater of the two. Okay. So yeah, okay. The problem, the glaring issue here is the income. And this can't go on. Because my thought here is if it's 50% commission or your base pay, then that means you're not making the commission, which means there's not enough people coming through, which means essentially you're kind of standing there like waiting for something to do. Right. Are you spending a lot of your day kind of standing around waiting? Right. So what I did was what I was doing the first when I first started there, I was

Starting point is 00:24:36 like, this makes no sense. I can do lift rods, right? Yeah. To make up the short. But now my car is breaking down and it's still not enough. Lift rides sometimes are not as great as it was when I started. Right. So it's not coming in. I tried to get an, I've been applying for other jobs. Like what? Nothing is coming through.

Starting point is 00:24:58 Like I am great at customer service and things like that. I love barbering. Okay. I really do love it, but I was trying to get an additional job, like work at Amazon at night. And it's hard to work at Amazon at night. See, six years ago, I lost one of my kids and my other children were there. And so what's happening is I have to kind of be at home with my younger daughter because she's still in the repercussions of all of that. She's got a lot of mental issues, you know, going on trauma stuff we've got through.

Starting point is 00:25:30 So I can't really leave her. Here's what I and it's hard. And that's the other reason why I've also lost jobs because I have to stop and go to school and it's heartbreaking. I really wish that I could get a job that was financially stable, where I could be at my child's disposal. You know, I just put one through college. I just dropped her off at MTSU.

Starting point is 00:25:51 And thank God she had a lot of scholarships, but I still have to pay a small amount for the next three months. That's right. I don't know where it's going to come from. Well, let's let's look at this. Let's look at this. OK, you love barbering, but right now, barbering is not making you money. And for sure, for certain, I feel let's look at this. Let's look at this. Okay, you love barbering But right now barbering is not making you money and for sure for certain I feel like you could go on it What do you do? Are you a braider? Do you do so ones? What do you do?

Starting point is 00:26:12 No, I don't I don't do that part anymore. I can do women's hair, but I love I love cutting me Oh, okay. Okay. Okay. So here's the thing. I think barbering goes on the shelf for now because it's not making you money Maybe you do it on the side and that's your side hustle, but it's not your main core income right now. I want you to get a full-time day job. Go over to Target, go over to Walmart, go over to Wendy's, go over to Chick-fil-A, anything today. Because you got to make a little bit more

Starting point is 00:26:38 than what you're making now and then make barbering the thing that you do on the side on the weekends, early in the morning, if night times don't work for you. That's the only way. Here's the thing that you do on the side on the weekends early in the morning if night times don't work for you. That's the only way. Here's the thing. The good news is you were earning a salary that was making your life run and making your household run. So you know you can do it. It's just a matter of filling in the puzzle to make sure we're putting the right pieces in to get that income. Let's talk about the car. So the car is not running. That's the only vehicle, correct? Yeah, it's running, but it needs work. Okay. What year is it and what's it worth?

Starting point is 00:27:13 And what do you owe on it? It's a 2022 Volkswagen Tiguan. I owe about 29,000 since it went up. I was at 26, but since I refinanced, it's back up to 29. Okay, and what's it worth? Nothing. Probably not right now. Okay, I want you to go, your homework is to go on Kelly Blue Book

Starting point is 00:27:33 and see what is it worth private sale. You're probably gonna be upside down on it, possibly substantially, because I don't know what all you've done with this thing. But we may need to get out of this vehicle because it's costing you what $600 a month? It's costing me $615 a month. Yes ma'am. Oh my gosh. Okay. So yeah, we're going to have to sell this car eventually and probably

Starting point is 00:27:55 what you're going to end up doing. Kenna, if you have a minute, if you look this thing up, maybe you can give me a ballpark on it. But by the time we get off this call, maybe we can give you a ballpark on it. But if I time we get off this call, maybe we can give you a ballpark on it. But if I were you to get out of that 30,000, what other debt do you have? I have a $8,000 signature loan. Okay. I have some student loans,

Starting point is 00:28:17 which I gotta try to figure out how to get back because I was in the settlement. And for some reason, Just tell me how much they are for the sake of the call. It's like $60,000. 60,000? And they put it back on. Yes, it's 60K.

Starting point is 00:28:31 Okay, and they're federal? It's not supposed to be on there. They're federal? They're federal loans, yeah. It was one in a settlement that they were supposed to take that off. Oh, because the institution is no longer with us? It's not.

Starting point is 00:28:48 They've come back, but it's gone through a lot of stuff. They've been in the news and everything. How much of the 60K is that settlement? All of it. All of it, okay. So you're gonna have to do some due diligence on that and figure out what's going on with that because 60,000 is not a lot that you want to lollygag with. Okay, what else is there anything besides that?

Starting point is 00:29:11 No, just a $400 credit card that I was paying This is an income issue And by the way, we're running short on time Let's get her a session with one of our financial coaches as our gift, because there's a lot to layer through here. But Nicole, you have got to come up with a situation with your daughter, friends and family. It takes a village. I'm not betting against a single mama.

Starting point is 00:29:35 I know you can find a way to get some care for your daughter. It's hard, it's really hard. I know it is, sweetheart. But I'm telling you, I'm not betting against you, but you've got to get some help with your daughter. She's been through a lot. You've got to get some people around you who can be with her. We're in therapy, but it's not a lot.

Starting point is 00:29:54 I mean, it's not a lot of help. I just... I know, but listen, I'm talking about people around you in your community. You have got to say, I need some help because you've got an income issue and the more you work if you were to get back up to $3,800 a month Jade she can work her way out of 100% and so Nicole All I'm saying is we're gonna get you with one of our financial coaches who's gonna walk spend more time with you Yeah, but listen, you've got to get more income and you've got to get a community around you who say you say look I need help with my daughter who's still going through this trauma over here.

Starting point is 00:30:26 I need some support because I'm mama bear and I got to go make some money. And the more money I make with our financial coach and we're going to give you all the resources by the way. So Christian, if she needs total money makeover, every dollar, give her everything we got. Christian is going to take great care of you. If you don't, I don't know if you go to church or not, I want you stepping foot inside of a church this Sunday. I don't care what you believe, you need people around you who want to help you and love on you and they will do just that.

Starting point is 00:30:52 Yeah, we're gonna walk with you Nicole. You're not on your own, but go get some income and watch this thing turn around. Hang on the line. We're gonna take care of you. This is The Ram Ramsay Show. I hate to admit this, but I don't always eat right. I know, I need to eat more fruits and veggies, but sometimes I just have to pound some chips because they taste so good. That's why I love my field of greens. It helps me eat healthy when I don't have much time and each fruit and vegetable in field of greens was doctor selected for a specific health benefit. Heart, lungs,

Starting point is 00:31:33 kidney, metabolism, even healthy weight. And folks, I ain't getting any younger. It's super easy to mix with water and here is the great part of it. I thought it might taste like grass, but it tastes great. And only Field of Greens makes this promise. Your doctor will notice your improved health or your money back. So go to www.fieldofgreens.com.com for 20% off your first order. That's www.fieldofgreens.com.com to save 20% on your first order. Welcome back to the Ramsey Show. Thrilled that you're with us. I'm Ken Koma.

Starting point is 00:32:19 Jade Warshaw is with me as well. 888-825-5225 taking your money questions and your work related or income questions. To that end, the GetClear Assessment, a tool that I was privileged to create a few years ago. It's helped hundreds of thousands of people and just wrote a new book called Find the Work You're Wired to Do. It came out a little earlier this year and it includes the GetClear Assessment. So what does the assessment do? Well it answers four really

Starting point is 00:32:48 big questions. Who am I? What's my unique wiring? And we're talking about in the context of work. Why am I wired that way? What do I want to do professionally and how do I get there? And that's what these two tools combined do for you. You're gonna spend about a third of your life at work and I just believe with everything in my being that you shouldn't spend it just doing something that you're okay at or that you're good at but you don't enjoy. It doesn't produce a result that motivates you. So you can get the book, find the work you're wired to do and it comes with the assessment. The Get Clear Assessment. You can get it at ramsysolutions.com

Starting point is 00:33:22 slash store. ramsysolutions.com slash store or you can click the link in the description of the show if you're listening via YouTube and Podcast all right to Susan is where we're gonna go. She is in Dallas, Texas Susan. How can we help? Hi I just went through a divorce or finalized it recently it took a while and I've been a stay-at at home mom during my entire marriage for, um, the past 14 years. Anyway, um, I got what I consider a pretty good amount of money. And I'm just curious. I don't really know what to do with it.

Starting point is 00:33:58 I let my ex husband handle every single bit of finances. I never knew how much money we had or anything. So how much are you getting? Well there's a couple components to it. I got a check for 1.1 million. Okay. I got a 401k for 715 thousand. Okay. And then $15,000 per month for the next seven years. Okay, how old are you? I'm 40. Okay, so you've got a guaranteed income for the next seven years, that's nice. Okay.

Starting point is 00:34:38 Okay, great. So tell me your question. Okay, so my question is I'm completely debt free. I also don't own a home because I just got divorced. Okay. So you need a place to live. Right, I'm renting right now, which is $3,600 a month, which I feel like is really expensive.

Starting point is 00:34:58 It is. It's also all bills paid. So my question, I guess, is I've got like $95,000 in a high yield savings account. I started a, a Roth IRA. I'm like totally, I know nothing about finance. So I've just been trying to learn just in the last month or so. Um, anyway, my question basically is a A, can I live off of part of this money, like

Starting point is 00:35:29 off of the monthly income, or do I need to get a significant job? Well, the good news is you do have a monthly income for the next seven years. So you've got some time to reinvent yourself and figure out what you want to do with life. And if I were you, obviously you don't need $15,000 per month to figure out what do I need? What's a fair budget for me? Maybe it's $7,000 a month, and then you take the rest and you invest it every single month, right? So that's thing one. You've been bought time to figure out a career path for you, and I'm going to toss it to Ken in a moment for that. But let's talk

Starting point is 00:36:05 about the rest of the income that that you have. So let's say just for in, just to keep it simple, let's say you invest half of what you're getting every single month for the next seven years. So around seven and a half thousand dollars or seven and a half thousand dollars, and then you've got 1.1 million. That's a check. Right? Yes, yes. And I didn't know what to do with that. So I just put it in a money market account, because I didn't even know how thousand dollars and then you've got 1.1 million that's a check right yes yes and I didn't know what to do with that so I just put it in a money market account

Starting point is 00:36:28 I didn't even know how to deposit that great I think that's a good place to start what I want my homework for you is I want you to start learning about investing I want you to start understanding okay I know husband ex husband used to do it but it's now time for you to start learning because the time is going to come where you're going to need to invest this and you're going to want to understand it. You don't want to just hand a check for, for $1.1 million over to anybody and say, here, you handle this. You're going to want to say, okay, I get it. And a great place to start is here. You know, here at Ramsey, we do teach that investing is a better place for you to build long-term wealth

Starting point is 00:37:06 than a money market account or a high yield savings account simply because of rate of return, right? If you invest that money, you'll get a higher compound interest rate of return on that so it'll grow faster. And so I would tell you to get hooked up with a SmartVestor Pro, they're gonna have the heart of a teacher

Starting point is 00:37:23 and they're gonna be able to teach you about this. And that's the key thing. Tell them, I don't want to invest anything yet. I just want to learn. Right. And they're going to ultimately have you invested in a way that's four different types. We're spreading it out. It's not going to be high risk. It's not going to be just in a set of stocks, but I want you to understand that. So when the time comes, we are investing that check, but in the meantime, we're getting with a SmartFester Pro to teach us. And then as far as the $715,000 401k,

Starting point is 00:37:53 yeah, leave it, let it grow. You're probably gonna have to do a direct transfer rollover into an IRA. And so the SmartFester Pro is going to help you do that. And then for you, now it's all about career and what you're going to do with your life because you're super young. I got a couple questions on the money first.

Starting point is 00:38:11 So the 715,000, how old are you? I'm 40. Oh my gosh. It's gonna be so much money. So the 715 that is in the 401k, and that is going to be a lot of money. What is that gonna be in 30 years? Okay, so did you tell me you're 40 now?

Starting point is 00:38:29 Yeah, she's 40. Okay, so let's just say you retire, I don't know, let's say 65, does that sound good? Okay. Okay, let's say you add nothing to it. That right there is gonna be $8 million. Holy cow. Just not touching it.

Starting point is 00:38:43 The reason I went to that, Susan, is because on this work thing, this may or may not be a thing now. How old are the kids? They're 14 and 11. My other thing is, can I buy a house? Yes. I was going to say that.

Starting point is 00:38:58 I was working that. And which money do I use? I would take the 1.1. The check. The 1.1 check is what you need to do. Plus you already have $95,000 in another savings account. So I was going to ask you, what is a modest house in a nice area? What is a house price, you know your area, for you and the kiddos? What does that look like? What's the money on that?

Starting point is 00:39:19 I mean, right now there's like nothing to buy. I've been looking. I mean, there's a nice home for 500,000. Okay, so let's just use that. Let's just use that as an example, okay? So if I'm you, and then I'm gonna pay cash for the house, because right now you're paying $3,600 a month in rent. So you take just a little bit less than half of the 1.1 and you've got to pay for a house.

Starting point is 00:39:50 Now that monthly budget, which I'm using as the 15,000 you're getting in the settlement, now that $3,600 was coming out of the 15K, it's not anymore. And your utilities and things like that are gonna be nothing. You still got the two kiddos in school. So I would come up with the every dollar budget and budget off of the 15, and I would do some type of an investment strategy

Starting point is 00:40:12 based on what a SmartVestor Pro tells you because Jade's already proved to you, you don't have to put another penny, and I'm not saying not to, but I'm guessing their investment strategy is gonna be, you're gonna diversify some stuff because right now, you are more than fine, Susan. You're going to be very, very wealthy

Starting point is 00:40:34 and based on just the 401K and what it does over time. So for me, if I were you, I would take my time. You just came out of this divorce, you've just settled. I'm fine with you renting for a little bit longer. You're saying the market right now is not a lot on the market. Let's see what happens after this presidential election. The point is grieve, stay cool.

Starting point is 00:40:54 The 3,600, while it's a little expensive, it's not even phasing you. I would take my time. I'd buy a nice house cash. And now you still have over half a million dollars to invest. And when you invest it, you're probably going to look for something that's non-retirement, something that you can get to sooner that's in some sort of a bridge account so that you

Starting point is 00:41:13 can access it, you know, before or six years. I agree with that. And that should be the advice that you can get. But for seven years, my goodness. But here's the deal. You're going to have some margin in that monthly as well. That's $180,000 a year for the next seven years. Yeah, you're good.

Starting point is 00:41:29 So from a standpoint of work, hang on the line, we'll give you the book, Find the Work You're Wired to Do and the Get Clear Assessment, but that is a relaxed like what would I do if I didn't have to work, which by the way, you don't have to. You don't have to. I was just talking purpose. Yeah. So sorry, we're running out of time, Susan. Hang on the line. We'll get have to. I was just talking for purpose. Yeah. So sorry, we're running out of time, Susan. Hang on the line. We'll get that to you. But thank you for the call. You're going to be in good shape. This is The Ramsey Show.

Starting point is 00:42:13 Hey you guys, health insurance costs are only moving one way, and that way isn't down. And if higher costs aren't enough, the wait times to see your doctor are longer, and it's harder than ever to get anything approved through the bureaucracy. So if you feel like the system is working against you, try a biblically based alternative to health insurance. Christian Healthcare Ministries. CHM is a health cost sharing ministry that's helped hundreds of thousands of families like yours take care of over 11 billion dollars in medical bills since 1981. And CHM has also helped them stay true to their values and avoid miles of red tape. And CHM support goes far beyond meeting financial needs. They'll also help meet spiritual needs. Members become part of a family who will pray with them and

Starting point is 00:42:58 for them when they experience a medical event. So listen, y'all, there's no better way to take care of healthcare costs. CHM programs start as low as $98 a month. So learn more today and join at chministries.org slash budget at chministries.org slash budget. From the Ramsey Network, it's the Ramsey Show. I'm Jade Warshaw. Next to me is one of my favorite guys out there, Ken Coleman. Hello everybody. Hosting the show together.

Starting point is 00:43:51 Hey, we're talking about your life, your money. We'll throw in careers. Ken is the resident career guide. I will help you with the money. You might have some relationship issues. You can toss those in as well. The number is 888-8255-225. Call us up, we'll get you on the line. Let's dig right in. We've got Tyler, he's in Charlotte,

Starting point is 00:44:10 North Carolina. What's going on Tyler? Hey, how are we all? We're doing good. How can we help today? So I have about two and a half million in debt between mortgages, short term, different car loans, stuff like that. I'm aggressively paying off kind of all the all the debt except for the mortgages currently. Okay. And I'm just trying to see now I should have that done in about a year to a year and a half. Okay.

Starting point is 00:44:37 The way I would set up and I'm just trying to see if I should make bigger changes and try to attack everything a little bit more aggressively and get it paid off sooner. Yeah. Or if I could just try to continue the way I'm going. Let's roll back and see where this lies. Cause when you first tell me I have two and a half million dollars of debt,

Starting point is 00:44:54 my pulse quickens. But then when you mentioned real estate, I thought, okay, that makes this a little different. So tell me about the real estate. Can you just go by property by property and I'll ask you about each one? So the first property you have is it a rental? I'm guessing Yeah

Starting point is 00:45:12 First one was a duplex. It's worth about two hundred sixty thousand. I have about a hundred and fifty eight thousand on it 1300 yeah, about 1300 incomes about 2150. Okay, so let's go to the next one. Single family, 270,000, asset value, debt about 159, payment 1000, income 1750. Okay, and the next one? Worth about 310, debt 200,000, debt $200,000, payments $1481, income $2200. Okay. Is there more? Yeah.

Starting point is 00:45:52 Another single family, that one we're actually trying to sell, we have on Airbnb currently, is worth about $540,000, debt $460,000, payment $3,00, and income about the same. I think after everything's set down, we'll probably lose about 500 a month on that one. Okay, anything after that? Number five? Yeah, we have a duplex, value 360,000, debt 205, payment about 1460, income 2800.

Starting point is 00:46:24 Okay, anything else you wanna keep going on? Yeah, it's quite a few more. Payment about 1460, income 2800. Okay, anything else you wanna keep going on? Yeah, it's quite a few more. Oh gosh. Okay, well, instead of going through these, here's what I would do if I were in your situation. I don't like that you're carrying two and a half million dollars of debt.

Starting point is 00:46:41 And I love that you love real estate and I love that you wanna get into real estate. Here we would teach a way to do that that's in cash and it would be you paying off your debt first and saving up to buy cash. You're you've gone far beyond that. And it is true that some of these may be good investments for you, but not at the tune of you being in two and a half million dollars of debt. So what I would do if I were in your shoes is I'd list them all out and I'd say, which ones can I sell off in order to clear this debt out? And are there a few that in the end

Starting point is 00:47:11 that I'll be able to keep that do, you know, create some income for me? Cause how many do you have total? It's 18 units total, but we have- Mortgages, how many mortgages? Five, six, seven, eight, nine, 10. total but we have a mortgages how many mortgages nine we're just counting the personal okay one that's paid off so yeah what I would do is try to get right side up on this and figure out which ones can I sell that are gonna

Starting point is 00:47:39 bring the right amount of profit in order for me to clear out this debt have you sat down to kind of figure that out yet? Well, the problem with doing, I mean I've thought about that in the past, but being that pretty much every one of these are, make a pretty good income after the debt. When I factor in selling them off to pay off the other ones, it reduces the income pretty substantially. Is this your only income? It's not as much income as you think. Your margins per house are actually not impressive.

Starting point is 00:48:10 And I'm not saying that to be unkind. I'm saying that because I agree with Jade. And I think the best play here is to actually get rid of the duplexes. I sell the duplexes today. Those are just bad investments in my opinion. But the point is, I think Jade's right, you can still come out of this thing on top.

Starting point is 00:48:27 You've got enough equity in these homes, just as you were listing through these, that if you sell X amount, so I would take, I'm making this up, let's say you got eight properties, I'd take the best four. I'd start there and go, what are the absolute best four properties

Starting point is 00:48:40 if you're looking long-term, Tyler? And I think you probably know some of these are better than others true or false? Okay so once you've paid those off as Jay told you now it's straight profit but on some of these you were listing you're like well my mortgage is a thousand I'm making 1750 that's seven hundred fifty dollars gross times twelve that's about ten grand a little over ten grand and that's actually gross. That's after your expenses and taking care of things.

Starting point is 00:49:08 All I'm saying is, is that you're gonna be better off with Jade's plan, because now you're actually making a sizable chunk and you don't owe any debt and you have no risk. I'd get out of this now. I mean, the truth, the truth, what Ken is saying is right on, and I don't say this to be condescending in any way,

Starting point is 00:49:26 but the truth is revenue minus expenses equals profit. And you're in debt, you're in the red because you owe two and a half million. It would be very different if you're carrying all these properties and you're like, Jade, I've got, and don't get me wrong, I'm not saying I'd be a proponent to this,

Starting point is 00:49:43 but if you're like, hey, I'm carrying all this debt, but because of the way it's cash flowing, I'm in the green two and a half million, but you're like, Jade, I've got, and don't get me wrong, I'm not saying I'd be a proponent to this, but if you're like, hey, I'm carrying all this debt, but because of the way it's cash flowing, I'm in the green two and a half million, but you're in the red. So these are not good investments for you. What signals a good and healthy business is profit. And so what you're saying, you're cash flowing, it's not actually profit.

Starting point is 00:50:01 It is, what really should be happening is you need to be filtering back then in that end to pay off the debt. And so for that reason, yeah, what Ken said, what I said before is your way out of this. I want you in the green and I want you doing deals that end with a net profit and that's not what's taking place here. Could four of these pay off the other four? Just gut check real quick.

Starting point is 00:50:28 Well I have, so there's two. If I take my personal property out of here, that reduces it down to about 1.75 million in mortgages and then the value would be somewhere around 2.7 million. Yeah, see. So we have about a million dollars in value. Man, okay, so let me paint a different picture for you. Let's just real numbers, okay? Let's say that you now have a million dollars,

Starting point is 00:50:53 a million dollars, and now you're paying off your personal home, no debt in your life at all, and now you've got real cashflow plus cash. Why is that not the better play in your mind? Zero risk. Yeah, and your place is paid. Yeah.

Starting point is 00:51:08 Like, is that not a better vision? If you don't agree, you just have to what? You're acting like this is impossible. Well, the thing is we crumbled, we just crumbled your empire. Like I sense that, you know, you have, you've acquired this over time. Yeah, but those four are gonna spit off how much?

Starting point is 00:51:26 That's what I'm trying to get you to. Let's say you were left with four houses. You got cash, plus they're spitting off, you know, the four left are gonna spit off what? How much per month? I would have to see which one's the best here. Run those numbers. But if I, yeah, I mean, just off the top of my head,

Starting point is 00:51:43 I'm probably looking at like, if I just say three, they equal up close to that, it'd probably be somewhere around, I don't know, 6,000 or so. Okay, but that's real money now. That's 72 grand in the clear. Not paying any debt. You'll have some expenses on that.

Starting point is 00:52:00 Yeah, the truth is, Ken is right, if there's anything good about any of these investments, you should be able to sell off some of them, pocket some cash, get your residence paid for, and keep some of the properties. That's what should be happening here. If for some reason you can't sell these to clear the debt, then something really is wrong.

Starting point is 00:52:18 This is the Ramsey Show. What does the future hold for business? Ask 9 experts and you'll get 10 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 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 unified business management suite, there's only one source of truth for the visibility

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Starting point is 00:53:52 this May 18th through 21. This leadership conference will refuel you with fresh vision and connect you to like-minded leaders so you can take your business to the next level. But you better hurry, because we're running out of seats. We've got less than 200 seats left. If you want to join us in Denver Colorado go to ramsysolutions.com.com. Or if you're listening on YouTube or podcast just click the link in the description. All right, who needs some help out there?

Starting point is 00:54:33 You're just going, I'm not where I want to be. I'm not where I want to be with my money. I'm not where I want to be in my relationships. I'm not where I want to be in my professional journey. If that's you, no shame in your game, number one. And number two, we'd love to help. We being Jade Warschall, my colleague, co-host, and friend, and I'm Ken Coleman, we're Ramsey Personalities,

Starting point is 00:54:54 and we're here for you. This is a listener of your show. We are here for you. We take your questions, 888-825-5225, 888-825-5225. Let's go to Detroit now. Kendall is there. Kendall, how can we help? Hi, nice to talk with you today. You too. What's going on?

Starting point is 00:55:15 So I just graduated medical school about a half a year ago. Hey, cool. Congrats. Thank you. So about three and a half years last, obviously residency salary is about 60,000. I have about 220 in student debt, but no other debt in my life. So my plan is like, you know, I can't pay off my debt while I'm a resident. I don't make enough, but when I graduate, I was going to live off of like 40,000, pay off my debt in two years. But my question is, I don't have like any money saved

Starting point is 00:55:45 for retirement and I'll be 33 when I start making six figures. So should I prioritize paying off my debt or should I start saving more for retirement? Well, Jade's going to help you on that, but I'm just real curious. What do you think that starting salary is? And what do you think the range is maybe in the first couple of years?

Starting point is 00:56:04 270 to 300. Ooh, Jade. You can do something with that, can't you, Coach? Listen, I'm excited for you. Thank you. I'm very excited, too. You should be. I'm excited for you.

Starting point is 00:56:18 You've got this big milestone coming up. You've got three and a half years left of med school, so that's cool. So luckily, you came out of this with only 20,000 of student loans. Can I just quickly ask you- No, 220. 220, what? Yeah, 220, I caught that one.

Starting point is 00:56:34 Listen, I'm glad I asked, cause I was like, how in the world did you do that? All right, so you've got 220 of student loans, nothing else, right? Yes, nothing else. Okay, and we've got a couple more years of 60,000 salary 60 to 80 or just 60? Yeah like 60 to 70 probably. Okay um yeah I'm with you uh they're not going to become due until after you graduate right and then you've got well are they going to be does it does your residency count for that or is

Starting point is 00:57:05 it separate so they're on I'm on an income base for payment plan and also the safe plan so okay like typically they gain a thousand dollars a month of interest but those two plans allow me to pay 233 and the government pays the rest of the interest so they're not going to grow in residency and I only have to pay $233 a month. But when I graduate, that'll change. Okay, okay. Got it. You know, I would try to pay as much as you can with the salary that you have. I mean, that's all that you can do. But what I really want to address is the fact that you said that you're only 33 years old and you'll be 33 when it's time to retire

Starting point is 00:57:47 or when it's time to start saving for retirement and you don't wanna be behind. And whenever I hear that, I kind of just wanna let people know like I've been there. And when my husband and I were paying off our student loan debt, which was about 280,000, we didn't finish that until we were around your age, 33, pregnant with my son, and we hadn't started investing at all. And I kind of want you to understand that you're going to be okay.

Starting point is 00:58:12 So let's just pretend, I love doing the investment calculator. So let's just play around here. How old are you, can I ask? Yeah, I'm 29 right now. Oh my goodness, you're 29. So let's just say, I'm gonna plug this and we have a really cool investment calculator. And I'm just gonna say, let's pretend you're 29 years old now. Let's pretend that you plan to retire at age 62. Let's just say that.

Starting point is 00:58:35 And you have zero in retirement now, right? And let's just say, because you're, let's say because you're saving for a home, you're not investing the whole 15% that we would advise when the time comes. So let's say you're investing 10%. So $2,700 a month, fair? Are you tracking with me?

Starting point is 00:58:54 Yep. Okay, so we're doing 2,700, I'm plugging that in, and let's just be very conservative and say an 8% annualized rate of return. Let's calculate that and see what that'll be. So when the time comes, you'll have over $5 million. Oh, okay. $5 million.

Starting point is 00:59:17 Yeah, that's a lot. Yeah, I think you're gonna be all right. No, it's not. Yeah. I think you're gonna be just fine. So that's what I want you to leave here with is, all right, I've got time. I'm working, you know, I'm doing the MD thing.

Starting point is 00:59:31 I'm paying as much as I can. Once I hit this salary, I'll be able to knock out whatever remains. I'll save up three to six months of expenses and baby step three. And by then, like I said, you might be wanting to save for a down payment too. And that's baby step three B.

Starting point is 00:59:43 And that comes before you start investing. So you've got time and you might be wanting to save for a down payment too. And that's baby step three B. And that comes before you start investing. So you've got time and you might start to do baby step three B and baby step four, which is investing 15% at the same time. Whatever you choose there, you're gonna be fine. $5 million, that makes me sleep a lot better at night, Ken. And those numbers, and by the way, Kendall, those numbers are gonna be way bigger than that. She was just going real conservative here.

Starting point is 01:00:04 That's if you never make any more money. Yeah, you're going to pay off your starting salary. What? Two years, you pay off your debt. Then you got your emergency fund after that. You save for a house. Let's just say you don't start investing until 36. Again, not an issue because of the amount of money that your 15 percent represents. And the compound interest is insane. Okay,

Starting point is 01:00:26 so you don't have to worry about that. That's the point. That's the whole thing that you called about. You're not too late. You aren't going to be destitute. You're going to be very, very wealthy. Is it just you, Kendall? Right now it's just me. I'm still figuring that out. Yeah. So that's a great point Jade. That doesn't take into account a double income. Oh by the way, you know what else it doesn't take into account? All the money you're going to make on a house because you're going to put a really big chunk down and you're going to pay it off.

Starting point is 01:00:56 Yeah, you're going to have a pay for a house when you retire as well. I got to tell you, Kendall I'll be shocked if you don't do what we tell you to do if you're not in the 10 million range by the time you're 65. Be shocked. That's incredible. I'm not making that up, am I? I thought it was security, yeah. I don't think that's a stretch. No, I don't think that's a stretch. You know, so you've got this. You got it? Thank you. Yeah, I really appreciate it. Follow the plan. Hey, do you have any of our products? You got any books or things that you kind of lean on I? Don't my sister went through your program and she normally just like talks me about all of this kind of stuff I don't have any I want to give you something Jade

Starting point is 01:01:36 Let's give her something to kind of cement this is that she can see the process for sure total money makeover Yeah, total money makeover and hey, I want you to head to everydollar.com slash Jade and I want you to pick up every dollar premium and it'll give you $15 off. And what I love about every dollar premium is you can kind of, the same way that I plugged in your numbers and gave you that snapshot

Starting point is 01:01:57 of what your investing future could look like, we've got a financial roadmap planner on there that you can plug in all sorts of numbers to figure out where you wanna be and where you're going to meet certain milestones. So you can plug in all sorts of numbers to figure out where you want to be and where you're going to meet certain milestones. So you can plug in numbers to figure out how long it would take you to save three to six months of expenses or how long it would take you to save up for a home, those sorts of things. So we'll make sure you have that. And I think she's all set. Kendall, you're a rock star. Okay, Jade, we got about a minute here. We got new people

Starting point is 01:02:22 come in and all the time. So I think it's really good to revisit. What is a really sensible question? Yes. And that is, I've got all this debt and if it takes me six years or five years or four years to pay it off, I'm so far behind the eight ball in investing. Why do we teach that the way we do

Starting point is 01:02:40 that we clear debt first before we invest? Explain that to newcomers who might still be going, ah, really? I mean, there's a lot of reasons, a lot of good reasons. The first reason is your income is your biggest wealth building tool. Like that's a Dave Ramsey classic quote right there. You need your income available

Starting point is 01:02:57 in order to be able to invest it. And for most of us, we're living paycheck to paycheck. Like we don't have any money left at the end of the month, but after we've paid our bills, our car note, we've got groceries, we pay the paycheck to paycheck. Like we don't have any money left at the end of the month, but after we've paid our bills, our car note, we've got groceries, we paid the kids daycare, most of us don't feel like we have that breathing room because we have so many debts and bills. So the first step is to clear that out.

Starting point is 01:03:15 So you get your money back in your budget and then you save up three to six months because if you don't save first and you start investing right away, if an emergency comes, you start pulling from your retirement or you start using credit cards and you start investing right away. If an emergency comes, you start pulling from your retirement or you start using credit cards and you go back into debt. So you pay off the debt, you build up the savings

Starting point is 01:03:31 and then and only then we start investing and that's the way it works. If you start doing it out of order, you start messing yourself up, Ken. And you just proved it. Once you start that investing, compound interest becomes your best pal. And so it can work.

Starting point is 01:03:45 You're not too late. Trust the process. It works. We're so glad you've joined us. She's Jade Warshaw. I'm Ken Coleman. This is The Ramsey Show. All right, Dave, you have some strong opinions. Possibly, yeah.

Starting point is 01:04:22 I think so. Okay, because you really prefer credit unions over big banks. So why is that? Well, credit unions, for one thing, are non-profit, which means that the members, the customers, own the credit union. So any profits that the credit union makes goes back into customer pricing. So you get better interest rate on savings, cheaper checking, and so on, that kind of thing. And what's more important than that though is the fact that the customer is the owner

Starting point is 01:04:53 changes the spirit on the credit union. So I find very few credit unions that aren't very customer-centric. Yes, well, and I think we have found one that is incredible, and that's Fairwinds. They are an incredible credit union that is really out with the heart to help the customer. You know, that's why we're partnering with them,

Starting point is 01:05:10 because they've got a scope to be able to handle the Ramsey audience, and they're the right kind of people with the right kind of values, and they've done a really, really good job with customer service, and the deals that they're offering, the Ramsey Tribe is incredible.

Starting point is 01:05:27 Yeah, absolutely. And you're right, their customer service is unbelievable. Winston and I just signed up and we got an account. And I'm not kidding, it took less than five minutes. It was so user friendly, like the step-by-step approach was unbelievable. And then the next day my phone rings and it says fair wins on my phone.

Starting point is 01:05:43 So I answered it and talked to someone there and they said, yeah, they give calls to every new customer. And so again, they just really care about your experience and I so, so appreciate that. So again, you guys, I know it can be a pain to switch banks or to open up new accounts, but Fairwinds, again, they make it so easy. Plus anything that you can do at a traditional branch,

Starting point is 01:06:03 you can do with them at fairwinds.org or on their app. And you'll have free access to over 33,000 ATMs. Hey, you guys know how much I hate banks in general. And so for me to do this is a big deal. Talk to our friends at Fairwinds and check out the combined checking and savings bundle that they created just for the Ramsey tribe. You guys, it's incredible.

Starting point is 01:06:25 Yeah, you guys, it's so easy to join Fairwinds no matter where you live. So go to fairwinds.org slash Ramsey to learn more. That's F-A-I-R-W-I-N-D-S dot org slash Ramsey. Listen, I know a lot of you would rather watch paint dry in slow motion than file your taxes. But thankfully, you don't have to dread filing when you've got Ramsey Smart Tax. It comes packed with everything you need to file online before the big deadline.

Starting point is 01:06:51 That means all major federal forms and deductions are covered with no hidden fees. Plus with Ramsey Smart Tax, you can save up to 70% compared to other tax software out there, it's a no brainer. Just go to ramsesolutions.com slash smart tax and see how simple tax filing can be. That's ramsysolutions.com slash smart tax and see how simple tax filing can be. That's ramsysolutions.com slash smart tax. Welcome back to the Ramsey Show where we talk to you about you.

Starting point is 01:07:24 Your money, your work, your relationships is our goal. We want you to win in all three. I'm Ken Coleman. Jade Warshaw is with me and the phone number to jump in is 888-825-5225. Try not to say too many things at once when you're live on the air sometimes. It's tough sometimes. Every once in a while I get on a roll a little too fast. It is time for today's question of the day

Starting point is 01:07:48 brought to you by Why ReFi. Now we do not recommend refinancing on everything but for distress private student loans there is Why ReFi. We trust Why ReFi because they help you with a low fixed interest rate you couldn't get anywhere else and it can help you stick to your budget and get out of debt. Learn more at yrefi.com slash Ramsey, that's the letter Y, R-E-F-Y dot com slash Ramsey. May not be available in all states. All right, today's question comes from Ken in Mississippi. My man.

Starting point is 01:08:19 All right, he says, I had a work performance evaluation after being at my current company for six months. I got nothing but atta boys and received no criticism for the job I'm doing. Then they offered me a 50 cent raise per hour. I just wanted to know how you guys felt about that after a performance review of nothing but great feedback. Am I being selfish or should I just accept it for what it is and hope for better compensation next time?

Starting point is 01:08:46 Well, Ken, you are being selfish. But selfish in this particular interpretation, Jade, is not bad. No, you've got to look out for yourself. That, thank you. Thank you for picking that up. Of course. That word selfish gets a really negative thing. But when it comes to your money and your compensation, you are your agent, you are your manager.

Starting point is 01:09:08 This is your livelihood. So all of the feels around this scenario are what I would call absolutely normal, dare I say, healthy. In other words, he gets a good review, he's sitting there and he's getting all positive. And then they go. I love how you dramatize it, even in the question. It was like, I think she was in a few dramas and plays when she was in school.

Starting point is 01:09:35 So in this situation, Jade, it's a shot to the chest. 50 cents. Yeah. It's a shot to the chest. 50 cents. Yeah. I'm gonna tell you something. If you don't feel something when you get a 50 cent raise, it's a little insulting. Then something's wrong with you.

Starting point is 01:09:53 Yeah. And so I would say, Ken, you are being what I would call properly selfish in recognizing real feelings that should feel that way, because I'm objective, I have no skin in this, and I would feel that way if I put myself in your shoes. So, now let's get to the second part of this. Should you accept it?

Starting point is 01:10:15 I don't know, because here's what I would be asking. And so I'm gonna play your agent, all right? I'm gonna be your agent, and then I'm gonna give it to my assistant agent over here. If Jayden and I are agenting for you, I'm gonna say, agent and then I'm gonna give it to my assistant agent over here. If Jayden and I are agenting for you, I'm gonna say I wanna find out, is that a normal raise? The average in the United States,

Starting point is 01:10:34 and this is not a law, if you look at the numbers, annual raises usually fall between three and 4%. Again, no one's beholden to that number. 50 cent raise is really, really low. That's right. So the question becomes, Ken, why is it only 50 cents? Is the company struggling? Good question. You gotta ask that.

Starting point is 01:10:52 That's a good question. And if the company's struggling, we all gotta tighten the belt in our personal budgets. And so I'd wanna know why only 50 cents, and dig into that. And then you have to decide from there, okay, that's the now answer. But I wanna look at next,

Starting point is 01:11:09 is I don't wanna keep feeling this way. That's right. Because you keep showing up year after year and you feel this way. It's not good for you. It's not good for you. Thoughts? Yeah, that's the thing.

Starting point is 01:11:18 That's a good question, Ken. If you ask and say, hey, what's going on? You know, I've done some research. I know the standard. Is company doing all right? And let's say he says, well, you know, no, we're not, da, da, da, hey, what's going on? You know, I've done some research, I know the standard. Is company doing all right? And let's say he says, well, you know, no, we're not. Da da da da da. Then it's like, okay, well, am I up for the ride

Starting point is 01:11:32 of sticking out, sticking it out until the- Last part of his question, should I hope for better compensation next time? No, brother, it's getting lower. It's only going lower from here probably. I don't like hope when it comes to compensation. Yeah. Do you? I love hope and I think in this case there's probably a lot more fish in the sea that have fatter pockets when it's time for Look at you and the mixed metaphors. That was strong. Yeah fatter gills. We've got to find some fish with

Starting point is 01:12:02 fatter gills. That's good. Truly though. I'm with you. I don't want hope in that. I want to put my hope in me and the Lord and action. I'm not gonna put hope in, well it was 50 cents this year. Well Ken, talk about motivation. I hope they bump it to a buck 25 next year. Talk about the role that that sort of thing plays in the in the motivation of the worker. Okay, so it if you feel D if you feel as though you've been devalued, it's a slippery slope to where you devalue yourself. That's good. That's very good. So you're saying he's going to start he would start doing things. Let's roll with me. Yeah.

Starting point is 01:12:40 What do you start questioning? I'm only worth 50 cents. That's good. That's tough stuff. That is tough. But that's the real real. So anyway, sorry about that, Ken. I would be looking for greener pastures if it were me. I agree.

Starting point is 01:12:55 But, you know, again, and by the way, anybody in that situation, can I just say this very quickly? Get the Get Clear Assessment in the book. Find the work you're wired to do. It's one purchase price. Get the book. And I'm going to tell you something. Lay it over. Take the results of the assessment. in the book, find the work you're wired to do. It's one purchase price, get the book, and I'm going to tell you something. Lay it over. Take the results of the assessment, read the book.

Starting point is 01:13:08 It's a 45-minute read. For this reason, Jade, it'll help people go, where could I go? Where are my possibilities? I'm not stuck. This is not the only thing I can do. Gosh, that's a really important theme for me is for people to see. I got options. Even when you can't see them,

Starting point is 01:13:26 I promise you, you have got options. So that book is really gonna infuse you with the confidence to know. 100%. It's not just that. That's not my only, yeah, I love that, Ken. It's about self-awareness, and by the way, on the other side

Starting point is 01:13:39 of self-awareness is confidence. You cannot be confident if you aren't aware. That's true. So there you go, just a quick, that's why I put that resource out. It's a fabulous little resource. So there you go. All right, to the phones we go. Ed is up in Columbia, South Carolina. Ed, how can we help? Hey Ken and Jay, thanks for taking my call. Sure, what's up? I just have a question about paying off a mortgage and until I wouldn't have made this call, I knew the answer in

Starting point is 01:14:06 listening to your show and listening to Dave, but I was notified that my job is being downsized October 1st. Oh, man, I'm sorry about that. Thank you. And the thing about it is I still want to pay off the house, but I'm concerned that I should leave the cash in case we need it now. Give Jay the numbers real quick. Walk her through the numbers.

Starting point is 01:14:28 Okay. Would you want me to walk you through the numbers? Just tell me what you... How much is the payoff? Yeah. Okay. Our payoff is $113,000. The house is worth $400,000.

Starting point is 01:14:39 And my wife and I in the last two years have saved $190,000 in our savings. What of that is your emergency fund? And it's not, I don't, I don't, well, if I was going to take the emergency fund out of that, it would be 50,000. Okay. So it's a hundred and forty, you got 140 up for grabs. Um, and that leaves you with 50 K there. Um, typically what we would say in a time like this, we're kind of in a crisis mode. I would tell you not to do anything major like jump into sums of money.

Starting point is 01:15:10 How quickly do you think you can find new work? And is your wife also working? Those are my two questions. My wife is working. I actually, I work two side hustles. I was in the day of a lot. So I started working two side hustles to save to pay off the house. So will you be able to, if you keep those two side hustles, your wife works and you get laid off, is that enough to cover the bills and cover your life if you pay off the mortgage? 100%.

Starting point is 01:15:35 We're debt free. Our cars are, we don't owe anything but the mortgage and our network. Yeah, I do it. I think so too. I do it. You've still got $50 fifty thousand dollars you're still able to make your bills even without this job and now you're lowering your expenses by not having a mortgage it's just taxes and insurance yeah I do that. You getting a severance of any type?

Starting point is 01:15:54 No they didn't they don't do that. But you know what you got a head start you got you're right that's right baby listen I got I'd be looking for a job as soon as you hang up the phone. 100%. I already have been and I'm fortunate. I'm a professional salesperson, but I also have a lot of experience in retail. Great. Hey, you guys are awesome. So, listening to you guys, I'll be at Walmart or Target or Costco.

Starting point is 01:16:17 Come on. You know? Pay the house off, Jade says. Yeah. You guys are awesome. You've done an excellent, excellent job and this is the fruit of your labor good job And download kept me off the ledge and I appreciate I wouldn't be in this situation if I didn't listen to your show So good you like you like country music I? Do you ever heard of an old guy named Johnny paycheck? I know who he is yeah download his song when we hang up

Starting point is 01:16:38 It's called take this job and shove it you can take this job and shove it cuz he's paid his house off I know right? I'd be like, hey you guys let me go guess what I did? Yeah. I paid my house off. There you go. Oh yeah. Yeah come on man. That's real financial peace that's why we do what we do. Ed you're the poster child we're happy for you. This is the Ramsey Show. Hey guys, good news, Presale is on now for my new book, Build a Business You Love. If you're a business owner, you know running a business is hard. That's why I wrote this book, to share what we learned over the last 30 years so business owners can grow your business faster with fewer mistakes.

Starting point is 01:17:22 Pre-order your copy today and you'll get access to over $350 in bonus items only at ramsay solutions dot com slash store. ramsay solutions dot com slash store pre-order today. Welcome back to the Ramsey Show. I'm Ken Coleman. I'm joined in studio with, or by rather, Jade Warshaw, 888-825-5225, 888-825-5225. All right, let's see. We've got our Ramsey Network app question,

Starting point is 01:18:10 and this is from Gabriel. He asks, can you really win money with apps like Bingo Winner and Mr. Beast's new app, or is it a scam? Also, I was wondering if Acorns and Robinhood, I'm sorry, are good investment options. I'm 50 years old, I don't know what Bingo Winner is, and I barely know who Mr. Beast is,

Starting point is 01:18:38 so I'm unqualified to even answer this question, because I don't even know what that means. Can they win money with their apps? I don't have the foggiest idea. Anybody in there? Anybody? The last Kelly, do you know what they're talking? I have no idea. The last game I played was words with friends

Starting point is 01:18:56 and there was no like option to win money. So I'm guessing it's one of these apps, like a candy crud. The only app that I play in is a fantasy football and that has nothing to do with any of this. That's just me. Can I give a hot take? Yes, please bail me out

Starting point is 01:19:12 because I don't know how to answer this question. All right, this is good. This is controversial and I own that. Oh boy, I am here for this. I'm gonna get you for this. I feel like if you have time to play games on your phone, something's wrong. If you're out working and crushing it

Starting point is 01:19:33 and taking care of your family, you don't have time to play games on your phone. I have zero problem with this. This is not controversial to me. And to put money into it? Here's my phone right here. I have no game apps on my phone. So I feel like I it? Here's my phone right here. I have no game apps on my phone. So I feel like I'm in Jade's good, good stead right now.

Starting point is 01:19:49 And I'm like, I just, I can't understand that. I can't watch a show, like watch a show with your spouse or read a book, but to spend money, have a conversation, but to spend money on a game inside your phone that's called Bingo Winner? Yeah, I'm gonna go ahead and say that I don't know if it's a scam, but you should not be spending your time on it.

Starting point is 01:20:11 There's no ROI on your time, and I'll bet there's not much ROI on the money. And then I was wondering if Acorns and Robinhood are good investment options. Robinhood is an investment platform. We are very clear at Ramsey's Solution is what our investment strategy is. I'll hand it to my colleague to give a very quick,

Starting point is 01:20:32 give a 60 second investment strategy. That would be your answer to any of this. Yeah, I don't like these apps because they really, they're really more about trading and the idea of I'm putting a little bit here but I can move it at any time. And that's not our strategy. We are long-term investors.

Starting point is 01:20:48 We are people who dollar cost average. We are people who set it and forget it and keep it there for a long period of time. And so that's why I don't like these apps because they don't promote that. So I would invest with my 401k through my job, or I'd be a part of a brokerage and have my Roth IRA. I gotta confess, I just put the old readers on.

Starting point is 01:21:11 I mean, look at the graphic, look at the graphic on that thing. I just typed in bingo winner app, and boy, talk about getting me in trouble. Yeah. Anything that looks like that is designed to suck the brain right out of your head. Yeah, it is.

Starting point is 01:21:24 That's my ruling on that. It looks like it's designed to keep you addicted right out of your head. It's yeah, it is my ruling on it It looks like it's designed to keep you addicted whatever it is. So so let me tell you what I know Successful millionaires aren't spending a lot of time on bingo win. There you go. Now I've got a ruling Okay, now we can move on move on goodness Wow. That was something wouldn't it? I'm never getting that time back neither Matthew's up in Austin, Texas. Matthew, how can we help? Are y'all better? Well, we're better now.

Starting point is 01:21:53 Yeah, we're glad you're here. We're thrilled about your question. What is it? You sound like y'all always got it together. So I just need your help thinking I'm supposed to get married here in a couple weeks. Congrats. Thanks there.

Starting point is 01:22:08 But yikes, kind of. And it has mainly to do with kids. I've got kids and how my new wife interacts. I guess the question being how much does my new wife have say so into how I raise my kids, spend money on my kids, and that type of thing? Because I'm really kind of struggling with it. All right, real quick question, because my colleague is loaded up, ready to go. I want to know this.

Starting point is 01:22:41 How long have you two been dating? Two years. Two years. And in the two years, has there been moments of tension based on her maybe stepping into some situations that the kids weren't really cool with, or you weren't cool with, or there have been some comments? I'm just giving you what I mean when I say moments. Have there been several moments of tension that lead to this concern? There's enough. I knew the answer. Yeah my friend, I would just say this, this needs to be settled in pre-marital counseling stat. How old are the kids? Immediately. They're not young and so I got two in college, one that's a teenager. Well, the two in college, that's a non-factor.

Starting point is 01:23:28 She doesn't get to say anything about that. And how old's the teenager? She's 16. But for example, like when the subject comes up, and I don't like saying this and I know it's probably wrong, but I say I'm a dad first if you make me choose. Is that a wrong thing to say? Yes. Yeah, because you're treating it like she's expendable.

Starting point is 01:23:51 And technically, now I know this is different, and I am going to step lightly on this, but typically when you get married, it's the marriage first. That's why I said what I said. And then it's the kids. Now, also traditionally, the person you're married to is the person you've had children with. So it's easier to make that statement and I want to, I want to hang out there.

Starting point is 01:24:13 It is easier to make that statement when that's the case. In your case, I don't think it makes it any less true, but I think it makes it more difficult to stand on that. Um, Ken? I agree. I agree. I'm gonna default to you called us because you've got some real fear and I'm glad you called us. If for no other reason than I'm telling you as a guy who went through premarital counseling and

Starting point is 01:24:37 I've been married 26 years long enough to know that had Stacey and I not been on the same page about the major things, I don't know that we're here. Same, same. You know? And so I'm just saying that Matthew, you need to invest time and money into premarital counseling

Starting point is 01:24:59 to sit with a professional therapist and get this stuff out on the table. Like you've gotta say, she has created this tension here. I feel like she stepped over here. She needs to be able to say, I didn't like it when you said I'm a dad first. Like we got to get this all out before we lock in. And then there's the kids side of this too. There is the kid side of it, but they got to solve it between the two of them.

Starting point is 01:25:21 First, you got to know what life is going to look like. Day one. Now we manage those decisions after that. He's nice to my kids, that's not it. But we're kind of different when things come up like, well I go, well if they're 22 they're gonna be on their own. Like, well yeah, but I sure hope so. But what if something happens and they need to move back in, you know, that kind of thing. Again, those things come up or are you going to pay for their master's degrees too, instead of us going to Hawaii for vacation? So I'm like, wait a minute. So yeah, she's got to realize that there's a whole life here and there's other people.

Starting point is 01:26:06 These are good questions. She's marrying into the family, not just you. And that's the case with anybody. You marry into the family, you marry into the situation, whatever it is. So I think that you guys, Ken is right. There's a lot that must be discussed before this happens. And Matthew, look.

Starting point is 01:26:22 Oh my God, two weeks. Oh wow. Okay. Well you know wow. Is this a big fancy wedding when we got a lot of people coming and a lot of money being spent? No, but I can't move today. It's not moving. So, you know what? I appreciate Matthew. He's going, listen Ken, I know where you're going pal. I don't want to walk down that path. I would. I would. I would. I would. I would. Because what I don't want, I would never want you to feel like you don't have a choice.

Starting point is 01:26:51 Or like once the wheels are in motion, you can't, you know, put a wood stick in it and grind it to a halt. You can. You have choices still. You have a lot less choices once you say I do. I agree. I'd get a session in at least and talk about these majors. I really would before the wedding. But can I also say that if she says, Hey, are you going to pay

Starting point is 01:27:10 for their master's degree or are we going to go to Hawaii? The answer is where is my grass skirt? That's what the answer is. The kids can pay for their master's degree. Go with mama to Hawaii, man. Aloha. Come on. I thought you were going in a different direction with that kid. Kids need to pay for their own masks. No, I'm glad you do. I'm glad you know what you're saying. This is the Ramsey Show. Thanks for watching!

The Ramsey Show - Surviving the Money Storm Starts with Tough Choices

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