“You’re Not Doing the Plan but You Want Other People To?”

Summary

The Ramsey Show Highlights: “You’re Not Doing the Plan but You Want Other People To?”

Release Date: January 10, 2025
Host/Author: Ramsey Network
Duration: Under 10 minutes

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Introduction

In this episode of The Ramsey Show Highlights, Mason reaches out to seek guidance on persuading his sister and cousin to adopt Dave Ramsey’s financial plan, even though Mason himself hasn’t fully committed to it yet. The discussion delves into Mason’s current financial predicament, the challenges of influencing others without personal adherence, and actionable steps to regain control over his finances.

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Caller’s Dilemma: Convincing Others Without Leading by Example

Mason initiates the conversation expressing his frustration and desire to help his family members embrace financial discipline through cash management and debt elimination. However, he admits to not having started the baby steps himself, creating a conflict in his ability to persuade others.

Notable Quotes:

• Mason (A) [00:02]: “I want other people to do the plan, but I’m not doing the plan myself.”
• Host (B) [00:48]: “So you're not doing the plan, but you want to convince others to do the plan. Is that the summary here?”

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Evaluating Mason’s Financial Situation

The hosts, likely Ken Coleman and another expert, probe into Mason’s financial status to understand his challenges better. Mason reveals a significant debt burden of approximately $38,000 against a net income of $40,000, compounded by multiple vehicle loans and his wife’s previous collections.

Key Points:

• Debt-to-Income Ratio: Mason is at 95% leverage, indicating financial strain.
• Age and Family: At 22, with a nine-month-old daughter and a wife in EMT school, Mason faces pressing financial responsibilities.
• Assets vs. Liabilities: Multiple car loans contribute heavily to his debt load.

Notable Quotes:

• Host (C) [03:01]: “So, Mason, that's 100% leverage. That qualifies as terrible. It's not great.”
• Host (B) [04:05]: “But she’s got a couple collections from before we were married that are like a thousand dollars or something.”

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Implementing the Debt Snowball Method

The hosts advocate for the Debt Snowball Method, emphasizing listing all debts from smallest to largest and aggressively tackling them. They stress the importance of including all debts, regardless of whose they are, to present a unified front in financial planning.

Actionable Steps:

1. List Debts: Catalog all existing debts from smallest to largest.
2. Budget Allocation: Use the “Every Dollar” budget to allocate funds specifically towards debt repayment.
3. Sell Assets: Consider selling depreciating assets, like expensive vehicles, to free up cash for debt payments.

Notable Quotes:

• Host (B) [04:18]: “So we got to get all of this, list it all out, smallest to largest balance, and start attacking these debts aggressively with the debt snowball.”
• Host (C) [05:12]: “I want you to put two-week time limit on yourself. Maybe you can do it faster.”

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Overcoming Paralysis and Taking Action

Mason admits feeling overwhelmed and paralyzed by his current financial state, which hinders his ability to act. The hosts encourage him to adopt a sense of urgency and intensity, likening his situation to a gazelle fleeing from a predator, to motivate immediate action.

Key Insights:

• Mindset Shift: Transition from planning to proactive execution.
• Family Involvement: Engage his wife in the process to create a supportive environment.
• Immediate Goals: Set short-term targets, such as saving the first $1,000 for an emergency fund.

Notable Quotes:

• Host (C) [05:59]: “The gazelle just starts running for its life. Until you get that kind of intensity, brother, you're gonna be... scared to death like you are right now.”
• Host (B) [06:52]: “Is your wife even on board? That would be my A1.”

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Building Momentum and Accountability

With his wife showing interest in the podcast and financial planning, Mason is encouraged to leverage this support system. The hosts emphasize the importance of setting clear deadlines and maintaining accountability to ensure progress.

Actionable Steps:

• Set Deadlines: Commit to saving $1,000 and establishing an emergency fund within two weeks.
• Eliminate Credit Cards: Cease using credit cards to prevent further debt accumulation.
• Collaborative Effort: Work alongside his wife to strengthen their financial strategy.

Notable Quotes:

• Host (C) [07:37]: “Tell her, in two weeks, I'm gonna have a thousand dollars. We have an emergency fund, and we're gonna stop using these credit cards.”
• Host (B) [08:10]: “One life, this one crazy life, like, would you capture it? Would you let it slip?”

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Final Motivational Push

The episode culminates with a fervent motivational push from the hosts, urging Mason to seize control of his financial future with unwavering determination. They highlight the transformative potential of achieving debt freedom and the profound impact it can have on his family's life.

Notable Quotes:

• Host (C) [08:22]: “Let’s go, let’s go.”
• Host (B) [08:30]: “Debt freedom is on the other side. What are you waiting for?”

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Conclusion

This episode of The Ramsey Show Highlights serves as a compelling narrative on the struggles of adhering to financial plans while inspiring listeners to act decisively. Through Mason’s journey, the hosts illustrate the importance of personal commitment, strategic planning, and leveraging support systems to overcome debt and achieve financial freedom.

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Key Takeaways:

• Lead by Example: Personal adherence to financial plans enhances credibility when advising others.
• Debt Snowball Method: An effective strategy for systematically eliminating debt.
• Immediate Action: Overcoming paralysis through urgent and deliberate actions.
• Family Involvement: Engaging loved ones for mutual support and accountability.

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For more insights and daily financial advice, tune into The Ramsey Show Highlights on the Ramsey Network, delivered seven days a week.

Transcript

[A]

Brought to you by Y Refi. Refinance your defaulted private student loans [e-mail] Ramsey so my question is, I have a sister and a cousin that are in a position in life where they're getting ready to start getting their first cars and jobs and things like that. And I've recently, last couple months, started listening to the show and got really into it, and I haven't fully started the baby steps yet. I want to. I just haven't made that leave yet. And I'm just wondering, how do I convince them? Because I can't deal with my life right now, necessarily, but how would I convince them that doing things with cash and not worrying about credit scores and things like that are the way to go?

[B]

So you're not doing the plan, but you want to convince others to do the plan. Is that the summary here?

[A]

Yes.

[B]

You're excited about the plan, and you want them to be excited about the plan.

[C]

Mason, this is the most America call I've ever received. Like, we really want to do a thing that none of us are doing. So y'all do this thing. I think the. I think the. As the great country lyric goes, you say it best when you say nothing at all. Mason, just start paying with cash. Just start getting connected.

[B]

Your actions will speak louder than words. If you roll up in there like, y'all need to start paying cash and getting rid of your debts, how about you just go? Yeah. What'd you do today? Oh, I paid off my car. Felt pretty good. How'd you do that? Well, I follow this plan, and then if they're interested, they'll listen. But I've never been able to convince someone of something they were not interested in. You just have to lead with intrigue, and they have to go. Tell me more about this.

[C]

So why haven't you started yet, Mason, if it's such a great plan?

[A]

Well, I mean, I don't know. I just haven't. I mean, I mean, I guess technically I'd be in baby step one. I just haven't. Yeah, I've got the. Every dollar. I've started the budget, and I'm getting stuff lined out. I just need to start putting that first thousand dollars together, and then I'll be going on it.

[C]

I know, but you didn't answer my question. If this is so great that you want all your friends and family to get involved, why haven't you?

[A]

No, I don't know. I don't think hesitation would be it. I think it's just. I don't know.

[C]

I think today's your day.

[B]

Yeah. Where are you at financially?

[A]

Not. Not terrible.

[B]

Great answer. If I was like, hey, John, how's your marriage? And John said, not terrible.

[C]

Not terrible. That means it's not great.

[B]

So how much money do you make.

[A]

Net? Maybe around 40,000.

[B]

Okay, and how much debt do you have?

[A]

About 38,000 probably.

[C]

So, Mason, that's 100% leverage. That qualifies as terrible. It's not great.

[B]

How'd you get into this mess? You're. You sound young. How old are you?

[A]

22.

[B]

Oh, yeah, I was actually about where you were at 22. I was $36,000 in debt with student loans, $4,000 in credit card debt, and I was making. About what you were making.

[C]

Where did you. Where's your debt come from, brother?

[A]

So I have a truck. I have about 9,400 on. And then we had. We were pretty close to paying off my wife's car. And then before we really got into all this, we got another car.

[B]

You have three cars?

[A]

No, just two. Okay. The other one we got rid of now, but my truck and her car together is about 95 and 16. 5.

[B]

Is she working outside the home?

[A]

Not as of yet. We got a nine month old little girl and she's in her EMT school. So once she gets out of that, we're going to be looking into.

[B]

Okay, how much debt does she have? Does that include in your 38 or is that just your debt?

[A]

Technically, it's. We're married, but technically, I guess it would all be mine, the Ayers. But she's got a couple collections from before we were married that are like a thousand dollars or something. But.

[B]

Well, her problems became your problems as soon as you said I do. So we got to get all of this, list it all out, smallest to largest. I don't care whose debt it is, I don't care what the interest rate is listed out by smallest balance to largest balance. And let's start attacking these debts aggressively with the debt snowball.

[A]

Right. I got my every dollar budget set up as far as our monthly payments. And I just yet last night actually wrote everything down on paper to look at. And when you see between the small things and the vehicles, that adds up to 38,000. It's. It's a little bit. Takes your breath away. A little bit, I think.

[C]

Mason, how quick can you get a thousand bucks? Stop thinking about it and stop making lists. How quick can you get a thousand dollars.

[A]

A month?

[C]

Maybe I bet you can do it faster. What can you sell? You got Some toys that just popped in your head. That guitar, that tool thing that, what.

[B]

You can sell it 4x4.

[A]

I mean, honestly, I don't, we don't keep a whole lot of like just things around.

[C]

I want you to put two week time limit on yourself.

[B]

Expensive cars sitting in that driveway, man, that's more than half your income.

[A]

Yeah.

[B]

Just depreciating every single day, continuing to go further down in value. I would consider selling your wife's car or yours, but it sounds like hers is worth more with a bigger payment.

[A]

Yeah, sure.

[B]

And could you then downgrade in car and get something for six grand while you get out of debt and then upgrade later a year or two from now? That's the kind of sacrifice that would get your family talking. They're going, do you see what they. They sold her car and got this crummy little beater car. What are they doing?

[C]

So when Dave says the words gazelle intense, he's been saying that forever. When a lion shoots out of the brush after a gazelle, a gazelle does not just sit around and like for a couple of months and like make a plan and like talk to the family. Like, are you guys going to run? Like I'm thinking about running. The gazelle just starts running for its life. And until you get that kind of intensity, brother, you're gonna have, you're gonna be 22, you're gonna have a nine month old, you're gonna have a wife. You're gonna be scared to death like you are right now. I can hear it on you.

[A]

Yeah. I'm also nervous. I know being on.

[C]

We're not that, don't be nervous. We're not that great. We're not that good. But you see what I'm saying? Like, I want you to get fired up on behalf of the world you're going to create for your daughter that you didn't have, which is a house that doesn't owe anybody anything. Can you imagine that?

[A]

Yeah.

[B]

Is your wife even on board? That would be my A1. I don't give a rip what your uncle Larry's doing. I want to know if your wife is willing to make the sacrifices needed.

[A]

She definitely likes the idea of it and we've talked about it. She makes fun of me a little bit because I talk about it so much. Because I got my head spins whenever I get involved in things like this and I'm excited about something, my head spins and it's like a burnout essentially. I don't, you know, it's all throttle. No Actual forward movement yet. And she just was telling me last night as well, when we were talking about the debts, that she wanted to start listening to the podcast and get into it and see what it's all about, and so we can really kind of lock hands and go forward with it.

[C]

I think it's time to get on it, brother. I think it's time to get on it and tell her, in two weeks, I'm gonna have a thousand dollars. We have an emergency fund, and we're gonna stop using these credit cards, and we're start knocking them off. We're gonna list our debt, smallest to largest, and get out of this mess.

[B]

No more games, man. I'm gonna change what you call rage. Tear this roof off like two dogs cage. You hear that?

[C]

It's exactly right.

[B]

There we go. There we go. Mason. He knows what to do, John. It's just, how do you find the motivation to do it? It's like, I love the idea of this Ramsey man. That sounds so cool. Getting out of debt and then you just get paralyzed.

[A]

Yeah.

[C]

You have to lose yourself in the music, in the moment. You have to just own it, you know?

[B]

Well, it's weird to think about, like, you really do have one opportunity to seize everything you wanted. One.

[C]

Well, I mean, you have multiple opportunities. You just have to go for it, right?

[B]

I mean, this one life, this one crazy life, like, would you capture it? Would you let it slip?

[C]

Oh, that's a good question. No. Yeah, you got to. You got to. You said you have to lose yourself in the music, in the moment.

[B]

That's all intensity. I don't know what else to tell you.

[C]

Go, go, go, go. Mason, stop sitting around thinking about it and talking about it. Go get it.

[A]

Yeah.

[B]

You're sitting over there. Your palms are sweaty, knees weak, arms are heavy.

[C]

Go. Let's go, let's go.

[B]

Let's just go for it, man. Debt freedom is on the other side. What are you waiting for? Tell your wife, tell the kids, Hide the wife, hide the kids. I don't care. Just follow the Ramsey plan and call us back when you're debt free and we will celebrate with you, my man. This is the Ramsey show.

[A]

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