It’s Time to Stop Surviving and Start Taking Control

Summary

Podcast Summary: The Ramsey Show

Episode Title: It’s Time to Stop Surviving and Start Taking Control
Release Date: April 10, 2025
Host: Ramsey Network (Dave Ramsey and Dr. John Deloney)
Co-host: Rachel Cruz
Description: On this episode of The Ramsey Show, Dave Ramsey and his team delve into strategies for overcoming debt, managing finances during personal crises, and maintaining healthy relationships amidst financial stress. Through caller interactions and expert advice, the hosts provide actionable steps to regain control over one's financial and personal life.

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1. Tackling Overwhelming Debt

Caller: Antonio Owens from Jacksonville, Florida
Timestamp: [01:13] – [09:03]

Issue:
Antonio, a 25-year-old finance manager, is grappling with substantial debt totaling approximately $65,000 in credit card debt and additional liabilities from three vehicles and recreational assets. Despite a high income (grossing up to $17,000 monthly with a take-home pay of $10,000), Antonio's debt has spiraled due to excessive spending during the COVID-19 pandemic. His financial obligations include:

• Credit Cards: $65,000 total
• Vehicles: $82,000 combined (Truck: $35,000; Mustang EV: $31,000; Girlfriend's SUV: $16,000)
• Recreational Assets: Boat ($8,000) and RV ($26,000)

Discussion & Advice:
Dr. John Deloney emphasizes the critical need for Antonio to sell his depreciating assets (boats, RVs, multiple cars) to halt further debt accumulation. Rachel Cruz reinforces the importance of aggressive debt repayment by eliminating non-essential expenses and focusing payments on the smallest debts first—a strategy known as the "debt snowball."

Notable Quotes:

• Dr. John Deloney: "Your ego is about to be hit hard. This is all about humility." ([02:43])
• Rachel Cruz: "Sell the RV, sell the girlfriend's car too, because I don't care how lovely she is." ([08:55])

Conclusion:
Antonio is advised to liquidate assets to eliminate high-interest debt and reset his financial trajectory. The hosts stress the emotional and behavioral changes required to support long-term financial health.

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2. Maintaining Romance on a Joint Budget

Caller: Joshua from Tampa, Florida
Timestamp: [10:34] – [18:12]

Issue:
Joshua, who is debt-free and planning to propose to his girlfriend, seeks advice on maintaining romantic surprises while both partners share a single checking account. His concern is whether joint finances will stifle his ability to surprise his partner with gestures like flowers or home decorations.

Discussion & Advice:
Rachel Cruz suggests proactive communication, where Joshua informs his partner about upcoming surprises without revealing specifics, allowing for planned spontaneity. Dr. John Deloney adds that integrating finances can strengthen the emotional bond and streamline financial management, but it requires clear boundaries and mutual understanding.

Notable Quotes:

• Rachel Cruz: "It's communication. Tell her you're working on something and give her a 24 to 48-hour notice." ([12:48])
• Dr. John Deloney: "It's about saying, yes, we're one together, and we're managing our finances as such." ([16:35])

Conclusion:
By setting aside specific funds for surprises and maintaining open communication, Joshua can preserve the romance while managing a joint financial life effectively.

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3. Overcoming Debt Amid Legal Challenges

Caller: Ryan from Salt Lake City, Utah
Timestamp: [21:18] – [30:39]

Issue:
Ryan faces $20,000 in debt, primarily from credit cards and legal expenses related to an ongoing custody battle. With a base salary of $55,000 and potential earnings up to $70,000, his monthly take-home is $4,300. However, legal fees consume a significant portion of his income, leaving minimal funds to tackle debt.

Discussion & Advice:
Dr. John Deloney highlights the importance of increasing income to manage debt effectively. Rachel Cruz advises Ryan to explore additional income streams or side gigs to augment his current earnings. The hosts suggest that once the legal issues are resolved, Ryan can redirect funds toward debt repayment more aggressively.

Notable Quotes:

• Dr. John Deloney: "The income side is gonna do it. You need to make some big changes." ([26:37])
• Rachel Cruz: "Can I make an additional thousand to $2,000 a month?" ([29:38])

Conclusion:
By focusing on boosting his income during the legal turmoil, Ryan can gain financial momentum to eliminate his debt post-resolution.

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4. Navigating Job Transitions and Entrepreneurship

Caller: Sean from Miami, Florida
Timestamp: [32:43] – [40:51]

Issue:
Sean recently quit a high-paying $80,000/year job to start his own diesel technician business. As a single income provider with two children, he seeks reassurance about his decision and guidance on ensuring financial stability during this transition period.

Discussion & Advice:
Rachel Cruz commends Sean's preparedness, noting his substantial savings ($80,000 in investments and $40,000 in savings) and advises renting equipment initially to reduce upfront costs. Dr. John Deloney cautions against incurring business debt and emphasizes the importance of maintaining his emergency funds to weather potential setbacks.

Notable Quotes:

• Rachel Cruz: "If you can rent the equipment in the first 90 days, I'd rent it if it's cheaper." ([39:37])
• Dr. John Deloney: "Stay at the speed of cash. Do not take on debt." ([43:03])

Conclusion:
Sean is advised to utilize existing savings wisely, minimize additional expenses by renting equipment, and focus on building his client base without accruing new debt.

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5. Managing Unexpected Tariffs and Business Costs

Caller: David from Salt Lake City, Utah
Timestamp: [43:54] – [51:49]

Issue:
David, a business owner, encountered an unexpected tariff increase on imported equipment from China, escalating costs from $53,000 to potentially $150,000. This sudden change threatens his business's profitability and ability to fulfill upcoming jobs.

Discussion & Advice:
Rachel Cruz recommends delaying the shipment to monitor tariff fluctuations and exploring rental options as a temporary solution. Dr. John Deloney emphasizes maintaining cash flow and avoiding further debt to ensure business sustainability during unpredictable economic conditions.

Notable Quotes:

• Rachel Cruz: "Tariffs are taxes, and we've never taxed our way into prosperity." ([49:54])
• Dr. John Deloney: "You cannot control geopolitics. What you can control is stocking money away." ([51:49])

Conclusion:
David is encouraged to adopt a flexible approach by postponing the shipment, utilizing rental equipment for immediate needs, and preserving his cash reserves to navigate the financial uncertainties caused by tariffs.

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6. Deciding Between Building or Buying a Home

Caller: Tyler from Des Moines, Iowa
Timestamp: [70:31] – [84:38]

Issue:
Tyler and his fiancée, both recently saving up considerable funds ($150,000 total), are debating whether to build a home on a purchased lot or buy an existing home outright with cash. Currently living in a trailer, they seek advice on the most financially prudent decision.

Discussion & Advice:
Dr. John Deloney advises renting for an additional year or two to solidify their financial foundation before making a large investment. Rachel Cruz supports this by highlighting the benefits of delaying major financial commitments amidst uncertain economic conditions, ensuring they have a robust emergency fund and avoiding overextension.

Notable Quotes:

• Rachel Cruz: "It's time to move to the home, do some repairs, and set yourself up." ([82:18])
• Dr. John Deloney: "Set some money aside and then hopefully most of this gets fixed." ([62:52])

Conclusion:
By opting to rent temporarily, Tyler and his fiancée can maintain financial flexibility, build a stronger savings buffer, and make a more informed decision regarding their long-term housing needs.

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7. Addressing Tax Documentation and Relationship Strains

Caller: Aiden from New Mexico
Timestamp: [55:18] – [85:00]

Issue:
Aiden faces marital tensions due to his wife's disorganization with tax documentation, leading him to handle tax filings independently to avoid IRS audits. This situation has escalated into frequent arguments and stress within the relationship.

Discussion & Advice:
Rachel Cruz and Dr. John Deloney emphasize the importance of establishing structured systems to manage financial responsibilities collaboratively. They suggest setting clear boundaries and mutual expectations to alleviate the burden on Aiden and encourage his wife to adopt more organized financial practices.

Notable Quotes:

• Rachel Cruz: "This is a relationship issue. We have to do this. Let's make this a lot less difficult by getting all our stuff together." ([55:53])
• Dr. John Deloney: "Both need to embrace responsibility and work together to fix the situation." ([58:51])

Conclusion:
Aiden is advised to communicate openly with his wife about the critical nature of organized tax management, implement joint financial systems, and seek external assistance if necessary to restore harmony and ensure compliance with financial obligations.

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Key Takeaways:

• Debt Management: Prioritize high-interest debts and liquidate non-essential assets to regain financial stability.
• Joint Finances: Open communication and designated funds can preserve individual romantic gestures while managing shared accounts.
• Income Augmentation: Increasing income streams is crucial for overcoming debt, especially during personal or legal challenges.
• Entrepreneurship Prudence: Utilize existing savings, minimize initial expenses, and avoid additional debt when transitioning to self-employment.
• Economic Adaptability: Stay flexible with business operations in response to geopolitical and economic changes to safeguard profitability.
• Housing Decisions: Delaying major investments allows for better financial planning and increased security.
• Relationship and Finances: Structured financial systems and clear communication are vital for maintaining healthy relationships amidst financial stress.

Conclusion:
This episode of The Ramsey Show underscores the multifaceted nature of personal finance, intertwining it with emotional and relational dynamics. Through real-life caller scenarios and expert advice, listeners gain valuable insights into overcoming financial hurdles, making informed decisions, and fostering healthier relationships.

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Notable Quotes with Timestamps:

• Dr. John Deloney: "Your ego is about to be hit hard. This is all about humility." ([02:43])
• Rachel Cruz: "Sell the RV, sell the girlfriend's car too, because I don't care how lovely she is." ([08:55])
• Dr. John Deloney: "The income side is gonna do it. You need to make some big changes." ([26:37])
• Rachel Cruz: "Can I make an additional thousand to $2,000 a month?" ([29:38])
• Rachel Cruz: "It's communication. Tell her you're working on something and give her a 24 to 48-hour notice." ([12:48])
• Dr. John Deloney: "It's about saying, yes, we're one together, and we're managing our finances as such." ([16:35])
• Rachel Cruz: "Tariffs are taxes, and we've never taxed our way into prosperity." ([49:54])
• Dr. John Deloney: "You cannot control geopolitics. What you can control is stocking money away." ([51:49])

These quotes encapsulate the episode's core advice and philosophical stance on managing finances and relationships effectively.

Transcript

[Dave Ramsey]

Hey, guys, Dave Ramsey here. Me and Dr. John Deloney are coming to a city near you on the money and relationships tour. It's happening soon, so don't wait. Get your [e-mail] tour. Hey, guys, Dave Ramsey here. Me and Dr. John Deloney are coming to a city near you on the money and relationships tour. It's happening soon, so don't wait. Get your [e-mail] tour.

[Rachel Cruz]

This is the Ramsey show where America hangs out to have a conversation about your money, your profession and your relationships. The phone number is 888-2552-258882-55225. My co host, my dear friend Rachel Cruz is alongside. She'll lead save how to spend that money and I'm going to help you on how to make more money. It's a great combo. We'd love to hear from you. Antonio starts us off in Jacksonville. Antonio, how can we help today?

[Antonio Owens]

Hey, good. Good afternoon. Thanks for taking my call.

[Rachel Cruz]

You bet. What's going on?

[Antonio Owens]

Yes, I'm just calling. I am. My name's Antonio Owens. I'm actually from Jacksonville, Florida. I'm 25 years old and I have about. I have a lot of debt, and I'm basically trying to figure out what's the best way to tackle that and overcome it, you know, from credit cards, cars. And I'm in a situation where I was thinking about purchasing a house, but I don't think that is the best financial decision. So I just want to see if you guys can help me out with that.

[Rachel Cruz]

We agree. Let's get you out of debt first. So walk Rachel through your debt. Go smallest to largest for us.

[Antonio Owens]

Okay. Yes. Going small to largest. So I have six credit cards totaling to about $65,000 in total credit card debt with the smallest minimum monthly payment roughly about $51 a month. Then the next credit card is about $123 a month. The next three are all about $10,000 apiece, and they're about that.

[Dr. John Deloney]

You owe on them.

[Antonio Owens]

The last three. So I owe $5,000 on the first one. I owe $7,000 on the second one. The next three after that I owe $10,000 apiece for a total of 30. And then the last one I actually owe $25,000 on.

[Dr. John Deloney]

Okay, what were these for, Antonio, what were you racking up the step for?

[Antonio Owens]

So basically, so my job professional. I'm actually a finance manager, ironically, at an. So, you know, when Covet happened, you know, I was making crazy good money. So you know, even sometimes upwards of $30,000 a month. So I had just got into the, you know, credit, building credit, and I just seen as okay if I. I don't mind spending 10,000 because I can just pay that back. And I did that for a couple months. And then, you know, the times have changed. Pay change a little bit. Pay still good. But it just got to the point where the interest was so high, to the point where anything over the minimum payment was just ridiculous. I mean, the minimum payment right now is anywhere from, you know, but.

[Dr. John Deloney]

But you're spending money on. On lifestyle is what these credit cards are initially.

[Antonio Owens]

And they have been maxed out for about three years. I've just paid the bare minimum. And I'll be quite frank, you know, I'll pay the bare minimum. And that little bit. I say I might spend it again, not because I need it, but it's just like. I just don't see the light at the end of the tunnel to get these things.

[Dr. John Deloney]

Yeah, for sure. Okay, so that's the credit cards. How much do you owe in your car?

[Antonio Owens]

I have three.

[Joshua]

Three cars.

[Antonio Owens]

I owe $35,000 on my truck. I owe $31,000 on my EV, my Mustang Mach E, and I owe $16,000 on my girlfriend's SUV.

[Rachel Cruz]

Okay, hold on. Wow, Antonio, you financed a car for your.

[Antonio Owens]

Yeah, yeah, I purchased one for yesterday. Yeah, I did.

[Rachel Cruz]

Wow. I feel like you watched the Wolf of Wall street and just decided to try to do your own version here. This is crazy.

[Antonio Owens]

That story, believe it or not, kind of what, you know, what my life was and kind of what I aim to be.

[Rachel Cruz]

That's why I chose it. That's why I chose the motorcycle.

[Dr. John Deloney]

Okay, what. What else? What else, Antonio? What other debt do you have?

[Antonio Owens]

No, I also have a boat, but I've paid that pretty low. So I only owe about $8,000 on the boat. And I do have an RV, a fifth world, that I owe about $26,000.

[Rachel Cruz]

Of course, that makes total sense because you got such a good deal on it. How much money are you making right now? What's your. What's your bring home every month?

[Antonio Owens]

So I GROSS Anywhere from 15 to 17,000amonth. My bring home is anywhere from 9 to 10,000, give or take.

[Rachel Cruz]

I mean, you are really, with all.

[Dr. John Deloney]

How. Yeah, how are you. How are you making it, Antonio?

[Antonio Owens]

It's, It's. I mean, it's unfortunate, you know, I. It's just one of those things that I thought, okay, I'm making money, making money. I could spend More money, I mean, and then also, you know, I. I do have four children and I do pay rent, which is roughly about 2350. Then you got utilities, water, camera.

[Rachel Cruz]

You didn't answer her question. We're trying to help you. And this is the part where we're now going to try to help you dig out. And you can do this, but how are you making it month to month? Do you have any leftover at all?

[Antonio Owens]

Oh, no.

[Dr. John Deloney]

And you're going into credit card debt still, so.

[Antonio Owens]

Honestly, I have anywhere from 500 to $1,000 left over at the end of every month, and that's if I'm lucky.

[Rachel Cruz]

Yeah. All right, so can we just do real quick, I want to know if we have any equity in any of these vehicles.

[Dr. John Deloney]

Yeah.

[Rachel Cruz]

Do you have any equity?

[Antonio Owens]

No, I'm actually. That's the main one that I'm flipped upside down on.

[Dr. John Deloney]

Okay, if you sold it today, what would you sell it for? What could you sell for?

[Antonio Owens]

Maybe 21 or 22,000.

[Dr. John Deloney]

Okay, are you. Are you just guessing or did you Kelly blue book this?

[Antonio Owens]

No, I. I've Kelly blue.

[Dr. John Deloney]

Okay. What about the. What about the Mustang?

[Antonio Owens]

The Mustang, I probably am upside down. About a thousand or two on it. I could probably sell it for 29,000.

[Dr. John Deloney]

Okay. And then girlfriend's car. Are you the only one on the loan or do you guys. Did you co Sign for her or what was the situation there?

[Antonio Owens]

No, I'm the only one on every loan I had mentioned.

[Dr. John Deloney]

Okay. And. And how. What could you sell her car for that one?

[Antonio Owens]

I. I probably could sell that. I could probably make $3,000 on that one. I could possibly sell that one for about 18 or 19 grand.

[Dr. John Deloney]

All right, perfect. Okay, so the cars are the.

[Jade Warshaw]

Easy.

[Dr. John Deloney]

Oh, yeah. The boat.

[Rachel Cruz]

What's. What do you owe on the boat?

[Dr. John Deloney]

He has eight. What could you sell for?

[Rachel Cruz]

Sorry, what's it worth? I'm so confused. I know.

[Antonio Owens]

So the boat is worth about 15,000.

[Rachel Cruz]

I sell that today.

[Dr. John Deloney]

Perfect.

[Rachel Cruz]

Sell the boat today.

[Antonio Owens]

Yeah.

[Dr. John Deloney]

Yes, yes, yes. Because then you'll get. You'll have $7,000. Anthony. Here's gonna be your issue, Anthony. Your ego is about to, like, really be hit hard. Like, this is all this is. This is. This is ego, three cars, boat, rv, credit card debt, living like you're just the fill in the blank and you're not. So there's a reality here, Anthony, that the humility pill that you're gonna have to swallow to. To truly change this around is gonna be really big. And that's the part about personal Finance that's so difficult is like the math stuff. We can walk through that. But there is a character part of you, Anthony, that's gonna deeply, deeply have to change. Like you caring about what people think has been very high in your life. And this is about to do the complete opposite. Like, you are going to be, you're. I mean, you're not going to be the man anymore. I mean, like, like, do you know what I'm saying? But there's, there's an, there's an ego level. And I'm saying that kindly because we all have a level of an ego. But man, it's going to be, it's going to be tough.

[Rachel Cruz]

Here's the deal. Is the rv. Can you sell more, make more on that than the 26 year old the, the RV?

[Antonio Owens]

I can, I can break even.

[Rachel Cruz]

I mean, okay, listen, listen, listen. You gotta sell the rv. You sell the girlfriend's car too, because I don't care how lovely she is. And she gets her own car.

[Dr. John Deloney]

And it's not your problem. Antonio, take your payment for the rv, the boat, her car, and the Mustang. All those payments. That's thousands of dollars.

[Rachel Cruz]

Yeah.

[Dr. John Deloney]

Now that you can sell the truck, start paying off these credit cards, smallest to largest. But man, it's going to be a. It's, it's about to be a 180 in your life, Antonio. But it has to be in order for something to change. And I feel the stress on you. So man, you, you got to make some big changes. 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 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 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 [e-mail] budget. That's chministries.org budget.

[Rachel Cruz]

Tampa, Florida is where we're going to go next. Joshua is there. Joshua, how can we help?

[Joshua]

Hey, good afternoon. Thanks for taking my call.

[Dave Ramsey]

Sure.

[Rachel Cruz]

What's up?

[Joshua]

Well, I'm planning on proposing to my girlfriend in a couple months.

[Rachel Cruz]

Nice.

[Joshua]

And we're both debt free.

[Rachel Cruz]

Okay.

[Joshua]

And I'm starting to think about our future. Right. In terms of finances, we both agree we need to be on one checking account and we're going to do everything together. I'm going to try to do everything the right way. And right now, the type of boyfriend that I am, I like to do little surprises here and there. Maybe surprise her, you know, one day with flowers or decorate the house and make her feel special. However, how can I still keep those surprises if we're both on the same checking account?

[Rachel Cruz]

Got you Have a not question.

[Joshua]

Why are you spending thousand dollars?

[Rachel Cruz]

I got you. I got you, man. You. First of all, thank you, Joshua, for representing that romance is not dead. You're a good man.

[Dr. John Deloney]

Still there.

[Rachel Cruz]

It's a good man Rachel that we're talking to. So here's how I do it. And I'm sure Rachel's got an opinion because I actually was sitting exactly where I am right now when your hubs, Winston pulled off an amazing surprise for you in the form of a phone call. You remember that? It went viral. Yeah, surprises are great. They're always a great fun. And I'm sure that he has surprised you before. So here's how we do it. So when I know that I'm planning to do that and it's a large expenditure, so I've planned for it, right. And then I will tell her, hey, listen, I'm working on a little something down the line and I'll let you know when I need you to just, you know, look the other way. And I give her about a 24 to 48 hour notice so that she's not going to go in the account to do any kind of maintenance or whatever. And it's pretty simple. And so, you know, then she does the old, oh, you know, you shouldn't do that, you know, that kind of deal. Of course she loves it. And so when it's a large expenditure, that's how I handle it. If it's smaller, same kind of deal. I might just say, hey, I'm pulling it from here or whatever. And you know, you've, you know, but you can do that. And it's just communication. Would you add, what would you add to that?

[Dr. John Deloney]

Yeah, no, that's good. I Think we do that now. More. So it's just the, like, hey, just don't. Don't look for a few days.

[Rachel Cruz]

Yeah.

[Dr. John Deloney]

And if, you know, a big anniversary is coming or a birthday.

[Rachel Cruz]

That's right.

[Dr. John Deloney]

It's assumed that, yes, a gift is going to be bought. So back in the day, we would get Visa gift cards from, like, Target or something. Oh, so you're like, yeah, I'm buying. You know, we're spending, you know, whatever, 100, 200, whatever the price is.

[Rachel Cruz]

Yeah.

[Dr. John Deloney]

And you don't know where it's being spent, but you know, it's. A certain amount of money is being spent. And then. Which I know not everyone has this, Joshua. But twice, two big purchases. I did concert tickets one time, and then he bought me a ring. But we had. I had my mom buy the concert tickets, and I was like, I'll just pay you back so he doesn't see.

[Rachel Cruz]

Ah, now, see, I've never done that. That's a great.

[Dr. John Deloney]

And then. Yes. The ring, which the friend was very generous of buying.

[Rachel Cruz]

How about that?

[Dr. John Deloney]

And then Winston just Venmoed him after. So, like, you know what I mean? Like, there's just kind of ways. And here's one around it.

[Rachel Cruz]

Josh, I'll give you one more.

[Ryan]

Okay.

[Rachel Cruz]

The other thing is, is you pull the surprise off in a way that you tell her, hey, surprise, we're about ready to go do this. And so she's surprised that you're doing it. In other words, I'm not going to say the brand, but I did that once with Stacy. We were. We went shopping on purpose. She didn't know. And we walked by one of her favorite stores, very expensive bags, and I said, hey, let's go in here for a second. And she's like, oh, no, that's. I said, let's just do it.

[Dr. John Deloney]

Yeah.

[Rachel Cruz]

So we go in. And I had already planned. And then I said, by the way, pick out. Pick out something.

[Dr. John Deloney]

Yes.

[Rachel Cruz]

And that.

[Dr. John Deloney]

She's part of it.

[Rachel Cruz]

So she's part of it. There's no moving funds. So I think we gave you several options there that I. That was a new one. Yeah. The one where you have the friend buy it.

[Dr. John Deloney]

You got to have a good friend, though.

[Rachel Cruz]

But you don't.

[Jade Warshaw]

But they know you got the cash.

[Dr. John Deloney]

Yeah, yeah, yeah. I swear. Yeah.

[Joshua]

But then would it still be considered. I mean, this is. I'm still relatively new to having one checking account, but would it still be considered a gift from me if we're still both depositing, like, our direct deposits into the Same account.

[Dr. John Deloney]

Sure.

[Rachel Cruz]

Of course it is.

[Joshua]

That's what I'm trying to understand. It's.

[Dr. John Deloney]

Yeah.

[Rachel Cruz]

If it's our money, it doesn't mean that you have to, like, divide it up into, well, this is how much I make. So I can only buy you a gift out of what I make.

[Dr. John Deloney]

Yeah, no, it's a whole idea, by the way.

[Rachel Cruz]

No wife is going to be upset about that. Do you know what I mean? So you're going to be great.

[Dr. John Deloney]

Yeah. So it is a little bit of an emotional disconnect that once the money hits the account, then it doesn't matter whose check it was or who brought it in. It's like, here's how much money we have as a household to spend. And I know we were so young, young when we got married, so that was kind of an easy thing. I don't know. We both, like. It was a. It was a gradual, easy mindset. And I think it's harder when you get married later and you're so used to functioning, like, with your paycheck, like, I understand. That's more of a heart. That was a. That's a harder kind of emotional break of like, oh, yeah, okay. It doesn't really matter, but. But it's this, like, deep oneness of just saying, yeah, regardless of who brings in the money. Like, this is our household account, and out of this is how we spend our money. And that's gifts, that's bills, that's everything. But we just see it as one. And what that does, Joshua, too, is that that emotional perspective trickles down to other areas of your marriage. And that's one reason we're so big on combining accounts is not just from the tactical side, even though it makes running a household so easy when you're functioning out of one account and people that split bills and he pays the electric. She pays. I mean, like, all of that. I'm like, oh, my gosh. Yeah, it takes all that work out, but then it does something when you are like, okay, we truly are. Like, what's the saying? Money. Put your money where your mouth is. Or is that it? Like, it's.

[Rachel Cruz]

I guess that's what you're saying. I'm trying to dance right now.

[Dr. John Deloney]

Whatever that's saying is. But it's just like. Yeah. Like, if we say we are one together, like, let's actually live out like we are. And even with our money.

[Rachel Cruz]

Absolutely. And here's the thing. When. If you were a young couple right now, and you're listening to this, it's a lot Easier to do this when you don't have. I mean, excuse me, it's, it's, you don't have to be so surprised and all this, but it's easier to kind of say when you're first starting out, you don't have a bunch of money to kind of go, this is what we're going to do for each other for gifts this year, we're going to spend X amount, and I'm making this up, but we're only going to spend 150 for birthdays or whatever. You predetermine that. And therefore, the surprise is within. What am I doing with the 150? So maybe that'll help you, Joshua, as you start out, you start getting more income and a lot more discretionary income. Then I think you take the advice that we just gave you. But, you know, the little surprises would be if you have a category for fun money or whatever. I think back in the old day, it was called a blow envelope. You blow the money. Well, that's where, you know, instead of spending it on you playing golf or whatever it is you do, you surprise her with a little something one month and you get the win there. So that's how you do it. And I think his biggest question, I think was an interesting question is what is the dynamic and the psychology between taking two accounts, in other words, incomes and putting them together? I thought that was an interesting question. I think a lot of people. I'm glad he brought it up. A lot of people think through that.

[Dr. John Deloney]

Yeah, for sure. Because it is different, especially if you're used to earning your money and functioning out of that paycheck. It is like kind of this level of like being exposed, like, okay, here we all are together, like, working on this together. So. But yeah, it's well worth it.

[Rachel Cruz]

Joshua, follow up question for you because you wrote a book called know yourself, know your money. It's a bestseller for couples. If you had young couples sitting with you and you were doing a quick little. All right, here's one takeaway on entering into marriage and bringing those money styles.

[Dr. John Deloney]

Yes.

[Rachel Cruz]

Into the dynamic you've just laid out. What is a way to make sure that that transition of coming together maybe is a little smoother than if you just try to figure it out, what would you say to that?

[Dr. John Deloney]

You know, and I think this is probably in a lot of marriage, the first year or two is I wish I had gone back and told myself and like, told, like, I wish we had this mindset more that you don't have to change each other into each other. Like, I think there's this mindset, especially with money, that if you're a natural saver, that like your spouse needs to love saving as much as you, or if you love doing the budget and you check it all the time like that they, they should be doing that too, or vice versa. Like, he should relax, he should have more fun. I don't know. Like, there's a level of don't push each other to change who you are. Like, you were attracted to your spouse for a reason, right? And it's like, usually opposites attract, so there's about them that you love. That's why you got married. And so it's not that the personality has to be consistent, but the value system on which you live your life and your marriage and your family and where you're wanting to go long term, that needs to be consistent. But the way you go about that, and I think it takes a level of humility to even say, maybe I could learn something from my spouse, you know, where I have a deficit they may be better at, and vice versa. So there's, there's like, don't, don't create an enemy between each other. Embrace the differences. They're there for a reason and celebrate those. And then also have the humility to think maybe, maybe I need a little bit of that that he has or that I could use more of that that she has, you know?

[Rachel Cruz]

Can I tell you something?

[Dr. John Deloney]

Yeah.

[Rachel Cruz]

What do you think that was a relationship goal. That's Oprah level stuff you just dropped. I could see Oprah on the couch across from you.

[Dr. John Deloney]

That's a lot of therapy. That's a lot of.

[Rachel Cruz]

I don't care how you got it, you just gave it and that was good, folks. Rewind that.

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[Rachel Cruz]

If you're a business owner, pay attention. Or if you know somebody, maybe a family member, friend, spouse, that's running a business, you know that it is absolutely hard. And some days the challenges are going to pile up. A lot of fear, a lot of doubt. That imposter syndrome can really, really be overwhelming. That's why you need Dave's new book. It's called Build a business you love. And he's unpacking his story, the plan, all the way, all the way from the card table and he and Sharon's living room to now. What is a $250 million business? It's a proven system. Think of it as the baby steps for running a business. You can pre order it now for 29.99 and you're going to get over $350 and free bonus items like the hiring playbook, the ebook. And they got an enhanced audiobook where it's not just Dave reading. I guess they've done all kinds of cool stuff. I don't know if you're gonna hear birds chirping. I don't know. I haven't heard it myself. But it is an enhanced audiobook. Make of that what you will. Can pre order today at the 29.99 and get all the free goodies by going to Ramsey Solutions.com store RamseySolutions.com store if you're watching on YouTube or listening via podcast, the link is in the show Notes to Salt Lake City. We go, Ryan is there. Ryan, how can we help today?

[Ryan]

Hi. I am just struggling to get on top of my debt. It feels like every time I get, you know, or I see a light at the end of the tunnel, I'm just, you know, there's something else that piles on on top of it. Now I would just like some advice on how I can, you know, continue to see the light at the end of the tunnel and just continue to work on the triangle on top of my debt.

[Dr. John Deloney]

Okay. So how much debt do you have, Ryan?

[Ryan]

So I've got about $20,000 in debt.

[Dr. John Deloney]

Okay, what's that in?

[Ryan]

So I would say about 15 to 16,000 of that is in credit cards.

[Dr. John Deloney]

Okay.

[Ryan]

And then the other, you know, five to six would probably be just stuck in medical right now.

[Dr. John Deloney]

Medical. Okay. And how much are you making a year?

[Ryan]

I'm making about 55,000 for my base salary.

[Dr. John Deloney]

Okay.

[Ryan]

And then I get paid commission. That would take me to about 65 to 70,000.

[Dr. John Deloney]

Okay, so after taxes, how much do you bring in a month?

[Ryan]

I'm bringing in about 4,300amonth right now.

[Dr. John Deloney]

4,300. Okay.

[Rachel Cruz]

How much margin do you have out of that? 4,300. Take home. How much margin do you have at the end of a month if. If you haven't had a disaster or something like that? You stuck to the budget, paid everything. What's that look like?

[Ryan]

I really throw everything that I can at my debt, so between my rent and my groceries and paying child support and everything that I've got, and I'm really sitting at 100 bucks at the end of the month.

[Rachel Cruz]

Okay.

[Dr. John Deloney]

Okay. And are you on a tight budget, Ryan? Like, do you have things written down before the month begins and you stick to it and you're, like, very, very, very, very diligent with your expenses?

[Ryan]

Yeah, I'm. I'm just sitting down and going through all of the minimal. Basically have everything. I'm following the baby step about, you know, having. I've got about two grand in savings right now.

[Dr. John Deloney]

Okay.

[Ryan]

And I'm just throwing everything possible that I can at one debt. It just. The thing that's hard for me is between my. I would say one of my biggest. Biggest expenses right now is my attorney fees, just because it's. I'm still actively going through a divorce, custody of my son and everything, and. Yeah, just throwing money that way.

[Dr. John Deloney]

How much money are you spending a month on that, would you say?

[Ryan]

I mean, last month I just spent or I just paid him 1200 bucks.

[Dr. John Deloney]

Okay.

[Rachel Cruz]

That's a huge difference.

[Dr. John Deloney]

Yeah, for sure. Is there. Do you see an end at all to that? Like, do you have any estimation on when that will be wrapped up?

[Ryan]

I'm hoping this year. I mean, my ex, she and I were never married.

[Dr. John Deloney]

Okay.

[Ryan]

So it's just been. You know, luckily, I haven't had to deal with the divorce side of it. Just battling.

[Dr. John Deloney]

Oh, I got you.

[Ryan]

I've been battling.

[Dr. John Deloney]

Okay. Battling her suicide. Okay.

[Ryan]

Yeah.

[Dr. John Deloney]

Okay. And how is it a son? Is that what you said?

[Ryan]

Correct.

[Dr. John Deloney]

How old is he, too? So this has been going on for two years?

[Ryan]

Yeah.

[Dr. John Deloney]

Okay. But you're thinking there is a possibility of it, of all this to be wrapped up at the end of this calendar year, is what you're thinking?

[Ryan]

Yeah. We should just have one more hearing left.

[Dr. John Deloney]

Okay. Okay. Well, that's good. I mean, in a sense. I mean, from the emotional toll that that takes, plus freeing up some of that income, because I think Ryan for you right now? Because it's not a crazy amount of debt. I mean, you know, 20,000. We, we've, we've had a lot worse. Even on today's show, there's been some more bigger numbers. So it's so doable. But I think it's an income issue at this point because I'm like, you know, after $5,300 a thou, you know, 1200 of that going to attorney fees. You know, I know it's not every month necessarily like that, but I mean that's a realistic idea of like, oh yeah, like there's a big chunk leaving. It's almost like you have to replace that in order to gain any level of traction. Because a hundred dollars extra, it's not really going to move the needle much. Especially with these, with this credit card. $15,000 in credit card debt and your interest rate is what, probably 20, 22.

[Ryan]

They're actually relatively low because I've had these credit cards for a while now, so I, to stay on top of them. I was doing really, really well about, you know, just paying them off. I mean only putting, you know, like putting gas and groceries on the credit cards and then just paying them off.

[Rachel Cruz]

You said that you've been throwing everything you can at the debt so far. How much? Just give us maybe a three month average to the best of your memory or if you know it clearly, what is, what is the amount you've been putting above all of your bills towards the extra, the extra. What is that extra amount you've been putting towards debt every month?

[Ryan]

So I've got an American Express card that I just did a minimum payment which right now is about, you know, $250. I've got a capital one that's about the same $250. My visa is pretty low, but my Visa, other than my attorney fees is the lowest amount. So I'm throwing probably $500 towards that.

[Rachel Cruz]

In addition, is my question. I'm not talking your minimums, I'm saying, are you, I thought you had said that you're throwing. I'm trying to get an idea here because I'm going somewhere with this. How much extra beyond your minimums are you putting towards debt every month?

[Ryan]

Probably 300 right now? As much as I can.

[Rachel Cruz]

And how often in the last five, six months have you gotten a big attorney bill?

[Ryan]

It's almost been every single month at this point.

[Rachel Cruz]

And what would you say the average has been? Has it been in that twelve hundred dollar range?

[Ryan]

A thousand to twelve hundred? Yeah.

[Rachel Cruz]

Yeah. Okay. So Good news, bad news. Bad news is you're still in this fight. And I don't know if that's going to continue, but that is a massive chunk that if you didn't have that legal situation. Now, I'm going to add that. I'm going to say, let's be modest and say a thousand dollars plus the 300 in addition you've been putting already, that's $1300 a month. To Rachel's point, I'm trying to encourage you here and then give you something tactical. We can pay 20,000, pay the 5 to 6 off really quick in medical and the 20,000 in credit card. Or Susie, 16,000 in credit card. We can pay that off really quick. So you asked the question, how do I see the light at the end of the tunnel? And I think you gotta, you gotta just hang in there to go. Once we get past the custody fight, the light is shining bright because you're gonna be able to put $1300 a month towards. Let's call it 21,000 change in debt. Correct?

[Ryan]

Correct.

[Rachel Cruz]

That's gonna go pretty quick. Now what do we do in the interim? My question is, what can you do professionally? What skill set and experience do you have that could potentially make you an additional thousand to $2,000 a month? You may not be able to do it, but I want you to at least ask the question and go, where could I do this? Can I make an additional thousand to $2,000 a month so that we can make some progress while we're in this fight? That would be my goal, Rachel. If I were him.

[Dr. John Deloney]

Yeah. I mean, if you just looked at this of like, you know, everything's on fire. I'm just, I am doing anything and everything. It doesn't matter hour of the day. And it's just kind of this like scorched earth feeling. And what's crazy, Ryan, is if you even just threw, you know, $2,000, you're. You're done with this in November, you know what I mean? December, January. But I'm like, it can happen so fast. The snowball effect can take. So it can, it can start going in that momentum so fast. But it's the income side that's gonna do it. And so it's. That's kind of the lever you have to pull and you're exhausted. I'm like, you're fighting custody or working full time, but. But I would up this 70,000 a year.

[Rachel Cruz]

I agree.

[Dr. John Deloney]

With some extra stuff that you can do again, even an extra thousand dollars a month bringing something in 1200, 1300. Anything extra, Ryan, that's going to be your saving grace in this because. Because it does get down to a math problem.

[Rachel Cruz]

That's right.

[Dr. John Deloney]

And the income, I don't see many expenses that you can cut from what you've told me. So I think it is. It is just earning that extra income and for a short period of time.

[Rachel Cruz]

That's right.

[Dr. John Deloney]

But then it's all done. And cut up the credit cards, Ryan, like today. Like, get them out after we're done with this and be done with it, because the temptation is to go back to those, and you're gonna go deeper in the hole. So just cut those out of your life completely.

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[Rachel Cruz]

All right, I want to say a very special happy birthday to one of our audience members that's watching live here in the studio. We just met her, her husband Eddie, And Millie is 28 today, if I remember. I think she said 28. Is that right, Millie? 28. So the audience is clapping for her. They're in Nashville. They came here. This was her big birthday thing.

[Dr. John Deloney]

So we get anniversaries, we get birthdays, we get a lot of celebratory.

[Rachel Cruz]

Millie, thank you for sharing your special day with us. We're so happy to meet you. So I hope you enjoy the rest of the show. I'll try to be on my best behavior now. Now. All right, let's go to Sean in Miami, Florida. Sean, how can we help?

[Sean]

Hi, how you doing? I recently quit my job making 80,000 a year to start my own business. And I'm just wondering, having a little self doubt, wondering if it was a mistake or not.

[Rachel Cruz]

Oh, what is making you wonder if this is a mistake? Tell me what's really going on here.

[Sean]

I am a single income family of four. I have two kids and I'm the sole provider. My wife hasn't worked since she got pregnant with our first child 15 years ago. So this is kind of everything on my shoulders type of deal.

[Rachel Cruz]

How long have you been self employed?

[Sean]

I, this would be my first time I have worked.

[Rachel Cruz]

No, no, I'm literally saying I know you quit your $80,000 a year ago. Was that, how long have you been on your own without someone else paying a week? Okay, well, all right, that helps. That gives you some perspective. Do you have any clients lined up? Do you have any kind of a pipeline or is this, I mean, give me some status. Okay, tell me what we're at, what we're doing.

[Sean]

For years I've been saving towards this goal. I have about 80k saved up in an investment account and about 40k saved up in a savings account.

[Rachel Cruz]

Okay, is that investment account? It's non retirement, correct?

[Sean]

Yeah, it's just like through the bank. A private perfect investment.

[Rachel Cruz]

I'm already, I got to tell you, I'm already. Indigestion is gone for you. All right. The way you started this call, I was looking for a roll of Tums and that might be a 2tums call. I was starting to feel it. But you got, you got your 80,000 and I'm proud of you for this. You've got the 80,000 that you walked away from in an investment account. You got an additional 40. Do you have any debt?

[Sean]

No, I've paid off all three of my cars. We do not own a house, we rent. I've rented the Same House for 12 years and my rent has not moved. So I'm in a very good.

[Rachel Cruz]

Fantastic. All right, now tell me about the revenue. I understand we've got 80 put away, which is great. That gives you a 12 month.

[Sean]

I also have, I also have three months of my bills paid ahead of time. Before I quit, I went ahead and paid three months of rent. Three months of insurance, Sean.

[Dr. John Deloney]

What do you do? What's the job? Yeah, what are you doing now?

[Sean]

So I'm a diesel technician by trade. I work on heavy duty trucks and fleet services.

[Rachel Cruz]

Do you have clients signed up that have already said, Eddie? Excuse me, Sean, we're staying with you.

[Sean]

I. I have regular customers who. Who have dealt with me, you know, for years, on the weekends and side work like that.

[Rachel Cruz]

Are they your current clients?

[Sean]

I have to. I just. I just started my LLC Monday, so technically, no one signed up for it yet. I have just created it.

[Rachel Cruz]

Does anybody know? I understand the technical side, but do these people know that you've left company XYZ that was employing you and now you're going out on your own? Do they know this? Yes.

[Sean]

Yes. I've done a few side jobs for these employees.

[Rachel Cruz]

Have you gotten any kind of verbal commitments to say, hey, we want to stay with you, Sean?

[Sean]

Yeah. Yeah.

[Rachel Cruz]

Okay, then. So best gut here, let's be modest. And I think you're the perfect guy, by the way. I want to congratulate you. If someone called me up and said, what should I do to transition from day job to working for myself? I kid you not, Sean, I would say exactly what you said. You went above and beyond what I would have said. You've prepaid your bills. I mean, this is really, really responsible.

[Dr. John Deloney]

Yes.

[Rachel Cruz]

So I want to applaud you because I am trying to get your pulse to drop. Now the focus is how quickly are we getting paid? Start working on diesel engines. And I think you're in the right trade, by the way. I think you should do fine. But modestly, what do you expect over the next 90 days? Let's take the next three months. What do you expect to be able to make doing the diesel mechanical?

[Sean]

Well, immediately I'm going to have to put up about 15 to 20 grand because I'm going to need a truck and some of the larger shop equipment that I was using. I have all of my personal tools. But you will need larger tools that the shop was providing before.

[Rachel Cruz]

All right, so we're going to take that out of the 40 grand we set aside. So now we got 20 grand set aside.

[Sean]

So you think that.

[Rachel Cruz]

Okay, but you didn't answer my question, and I love that you told me that. But my question is, what do you anticipate making over the next three months? Revenue?

[Sean]

Well, I was planning on hopefully being able to pull down at least three to four grand a month.

[Rachel Cruz]

Great. So, all that said, I don't think you've made a huge Mistake. If you believe that you've got a pipeline that's out there, as you begin to get out there and hit the.

[Dr. John Deloney]

Payment, and you're in the same industry, which is such a great. Right. You're going from one thing to the other. But it's the same clientele, like, it's the same contacts and everything. It's not like you're doing this. And if you've got computer sales or something, you know.

[Rachel Cruz]

Yeah. So let me go forward, Sean, and maybe give you a litmus test. Okay. For yourself. If you go three to four months without any income and you're not getting any clients saying, hey, I want you, and you have to start eating into that 80,000, I think, then you start to go, what is not? What's not working and why is it not working? As of right now, I'm not. I'm not able to say that you've made a mistake. I don't think you have. You strike me as such a response.

[Sean]

The great thing in my position is with all my certifications and qualifications, I could walk across the street right now and any other company.

[Rachel Cruz]

That's what Rachel was saying.

[Dr. John Deloney]

Yeah.

[Rachel Cruz]

And Rachel was pointing that out.

[Sean]

I always have that as a fallback.

[Dr. John Deloney]

Yes.

[Rachel Cruz]

And you're in high demand, are you not?

[Sean]

I have two grandfathers who have opposing views on this situation. Both are company owners. One says, business loan, gamble with someone else's money. And the other person says, to use my 40,000 and savings.

[Rachel Cruz]

We agree with him. You already told you what I said to do. You go get the truck. And I was going to challenge you on that, by the way, if you can rent the equipment in the first 90 days, I'd rent it if it's cheaper. Now, if it's cheaper to buy, then buy it, because you've got the 40,000 set aside and you only need what you're anticipating is 20,000 in expenditure. So. But if it was me, I would rent. If it was a decent savings. You know, it's kind of like, all right, I'm out on my own now, instead of buying all this equipment, maybe I rent it. If again, it's cheaper.

[Dr. John Deloney]

Yeah. And I would caution you so much, Sean, of opening that debt door, because once you do that, especially with small businesses, because what. What Ken said was right. It's like once you kind of have a litmus test of, like, a timeline, and if they. If you're three, four months in and it's like something's not working, when you open the door of debt. We've seen this so much that people just. Well, I'll just make it one more month or two more months. And you end up in such a hole, and then it doesn't work. Let's say it doesn't. Now you have all this business debt and no business. It's like going to college and getting a student loan and not even getting the degree, right? So, like, it's. It is not even worth entertaining that idea. Move at the speed of cash. And I'm telling you, the stress load when you don't have a bank asking for their payment, I mean, it changes your decision making to. Sean, you are in such a peaceful place right now and you're making such sound, smart decisions. Stay there. It's worked, right? It's working. So don't. Don't change that.

[Rachel Cruz]

Yeah, absolutely. Sean, I. Again, I applaud you.

[Dr. John Deloney]

Well done. I know.

[Rachel Cruz]

If you want to be extra conservative and your wife is willing. I don't think she needs to. To. But if you want to be extra conservative and your wife is willing to work for three to six months just to offset some stuff, then that'd be an idea as well. But she doesn't have to. I'm not recommending that.

[Dr. John Deloney]

Yeah, and maybe that's an option. Like if you're kind of getting there four months in and you think you both see the light, but it's like, hey, two or three months of something would feel better. Maybe she does do that, right? I mean, like, you know, there's some.

[Rachel Cruz]

There's just to avoid touching the 80, I guess is. And I'm only saying that as a super, super conservative, I'm not recommending that she go back to work. I'm just trying to show you every option because what Rachel just said is gold. The idea of not having debt is all about peace. And there's nothing worse than going after the dream. And Sean, is this a dream for you? Yes, there is nothing worse than going after a dream and it becomes a nightmare. And I think you set this up to where you're not going to have any nightmares.

[Dr. John Deloney]

And it's in such demand. You're in such a great industry. So I think you're going to do great.

[Rachel Cruz]

Sean, zero risk right now, but if you take out debt, you bring risk in. But right now, zero risk. And man, what a great way to achieve the American dream. Rachel, do you ever get these sketchy text messages that are like, hey, you need to update your address and verify so we can get you the package you didn't order?

[Dr. John Deloney]

Yes, I have. George. Sketchy and never trust him.

[Rachel Cruz]

And that's why we recommend Delete me. They help with that.

[Dr. John Deloney]

Yeah, they do. Delete me actually goes in and removes your information from data broker websites. And it is an incredible service that everyone needs.

[Rachel Cruz]

And there's a lot of shady companies out there that solely exist to sell your personal data to bad guys. And that means your info, like your email address, your home address, your kids names, your name, everything is just out there for scammers and spammers to find.

[Dr. John Deloney]

That's right. And then once they remove your information, then they're going to send you a detailed report. Report telling you where they found your information, when they removed it, how many hours they've saved you. I mean, it is incredible. So detailed and it's beautiful.

[Rachel Cruz]

I love these reports so far. Get this. They've reviewed 27,000 listings on my behalf, removed me from 240 data broker sites and saved me 77 hours of time. It's incredible.

[Dr. John Deloney]

Absolutely amazing. And Winston and I now get fewer texts, weird emails, spam calls, all of it.

[Rachel Cruz]

I love it. So you got to be sure to check them out. Ramsey fans get 20% off their annual plans. Just go to JoinDeleteMe.com Ramsey that comes out to less than nine bucks a month. Super affordable.

[Dr. John Deloney]

It's amazing. So again, that's joinedeleteme.com Ramsey make sure to check it out, you guys.

[Rachel Cruz]

This is the Ramsey show where we help you win with your money, win in your profession, and win with your relationships alongside the fabulous. Very springy today. Rachel Cruz. I'm Ken Coleman. Just trying to keep up. Triple 882-55-5225 is the phone number. Charlotte, North Carolina, I believe it's known as the Queen City. Rachel, I like to give her useless facts and sometimes you at home appreciate them. Or maybe you don't at all. David is there. David, how can we help?

[David]

Rachel and Ken, so excited to talk with you. Yeah, it is the Queen City.

[Dr. John Deloney]

And you're right, I'm doing my part. You just made his day, David. You just made his day.

[Rachel Cruz]

Thank you, David.

[Ryan]

Awesome.

[David]

Well, yeah, I've been on the Ramsey plan now 20 years. I found you guys back in OH5. Got out of debt in less than 18 months as you teach and have lived below my means on the personal and business side ever since. Today's question is in regards to the tariffs. I own a business and in December I made our largest ever investment in a equipment and I paid in full when I ordered back in December. Took four months to make and it's ready to ship now, but it's coming from China. And so two days ago, I was told if I want to import it, it's going to cost 80% of what I paid just for the product. But now with Today's news, what, 145%.

[Rachel Cruz]

So, yeah, who knows what Trump's gonna do? He might just get excited. 300%. I mean, we're in a full scale right now. And this is real stuff right here. This is where this kind of stuff. You've heard me yammer about it in private.

[Dr. John Deloney]

Oh, yeah.

[Rachel Cruz]

Now it's real.

[Dr. John Deloney]

Ken, are you.

[Rachel Cruz]

I'm pretty fired up, actually. I'm pretty pissed off.

[Dr. John Deloney]

Go, Ken.

[Rachel Cruz]

Because I'm going to say this real quick, and then we're going to get in the numbers. Tariffs are taxes, and we have never in the history of this great country, taxed our way into prosperity. And it's the Davids of the world that are going to get hit hard on this. So let's talk real situation. What's your question based on where you stand right now? And I'll start working through this with you.

[David]

So I know that since I already paid back in December, that's a sunk cost, as you always say, right? I mean, do I pay the 80% or even now, 145% or 300%, like, whatever it is, or do I wait to see if it comes down? But as you say, you know, shoot, it could go up. Right?

[Rachel Cruz]

So, yeah. So the question I have for you is if, let's just assume, let's play this out as though you got scammed and you paid for this and you're never going to get the equipment. Where does that put you in your actual business? How does that affect your business? Your ability to provide to your customer what you need to provide?

[David]

I mean, because I followed your plan and paid in cash, then, you know, it's, it's a hard lesson, but we're gonna make it right.

[Rachel Cruz]

So not getting that equipment, but you need the interrupt. That's what I'm trying to get at. I mean, will it interrupt?

[David]

No, I mean, I can, I can rent and I mean, I got a couple jobs up in May that next month that I need it for.

[Joshua]

But I've.

[David]

I've already just planned to rent now anyway because they delayed the shipment. Had, had we received it when we were supposed to, this wouldn't even be an issue.

[Rachel Cruz]

But. All right, and just for real numbers, what is the actual. Since you've already paid cash, what is the actual dollar amount that you're going to owe as of today. If you were to call them and go ship it, what's the actual cost? Not the percentage of the tariff, but the actual cost to you?

[Ryan]

Yeah.

[David]

As of two days ago, it was 53,000.

[Rachel Cruz]

And just so the American people that are listening in here can hear this, what would it have been it under the previous tariff?

[Ryan]

I'm not sure.

[David]

I'm, I'm not sure. Maybe 25,000?

[Rachel Cruz]

No, not if it's.

[Dave Ramsey]

Not.

[Rachel Cruz]

If it's 125. So it's a sizable chunk to you. So if it were me, I'd wait to see what happens. Because of what you said, I would delay shipment. Absolutely. I would delay.

[Dr. John Deloney]

Yeah. Is there any harm, David, if you said, hey, I'm going to just wait six months in any job I have between now and then, I'm just going to rent for that. They'll just hold it.

[Rachel Cruz]

It's not going to get any worse. I'm not going to sit here and tell you that I know what Trump's going to do or Gigi Ping is going to do. I don't know. But I don't think it's going to get demonstrably worse. I mean, we're talking cartoonish levels right now. 125% tariff, let's just be honest. Trump is negotiating, and who knows if it's going to work, but this is absurd. So I would sit on the sideline because you can. I think that's absolutely the play.

[David]

Yeah.

[Rachel Cruz]

I wish, and I wish I could.

[Dr. John Deloney]

Say how much does it cost, David, to rent what you're going to do? How much will that be out of pocket?

[David]

Yeah. So that's not too much. It depends on the size.

[Dr. John Deloney]

Like a couple grand or like 10. Yeah.

[David]

So for the first event, it's going to cost maybe about four grand. The second event is going to cost maybe about eight or nine grand.

[Dr. John Deloney]

Okay. Because there is a point of diminishing return that. Right. You end up renting so much that you could have just had it. And, well, at which point you go.

[Rachel Cruz]

All right, I'm going to eat the 53.

[Dr. John Deloney]

So there's almost like a timeline, David, of.

[Rachel Cruz]

Well, but if you're renting is based on the job, do you, do you price in the renting to the job? Oh, yeah.

[David]

I mean, yeah, yeah, I'm working up.

[Rachel Cruz]

So then my point is, is then as long as you can do that, I, to Rachel's point, I would never, I would not pay this tax. But you understand something, David. You got to take what I'M saying with a, about a bag of salt. Because I hate taxes. Like.

[David]

Right.

[Rachel Cruz]

The only thing I hate more than taxes is Satan. I mean, that's, that's the honest to God truth. So taxes come from hell, and so they're related. That's my take on it. And so I would sit tight. And I'm really sorry this is happening. I'm really sorry.

[Dr. John Deloney]

But I'm glad you called, David.

[Rachel Cruz]

And I'm also glad, by the way.

[David]

I found y'all years ago, because, I mean, I'm in a position to. Where I can wait.

[Dr. John Deloney]

Yeah.

[Rachel Cruz]

This is why cash is king.

[Dr. John Deloney]

Yep.

[Rachel Cruz]

For small businesses, because you cannot control what a president does or what a premier of another country does. And you're, you're stuck in the crossfire here.

[Dr. John Deloney]

But, Ken, you were just on.

[Rachel Cruz]

I'm gonna, I was just on Fox Business about this.

[Dr. John Deloney]

As I was gonna say, you were just on.

[Rachel Cruz]

And I said this was what I was worried about. And this is, and for our audience, I want to be very clear, this is not a political statement.

[Dr. John Deloney]

Right.

[Rachel Cruz]

This is not a Republican statement. This is not.

[Dr. John Deloney]

Because even within the Republican Party, this issue's divided. Very divided. Very. Even within it, people have different opinions.

[Rachel Cruz]

But what I'm going to say is, is that I personally, I'm speaking personally, not on behalf of the Ramsey show, but I'm speaking from an economic standpoint. As a conservative, I am not for taxes ever. It's the last resort. Do I think taxes are necessary to fund the government? Yes, of course. But what I said in New York on that, on that show, and I'll say it right now, this is why I'm not in favor of a trade war. When you go to war with commerce, Rachel, the very act of war means one side has to lose. And I know we got very opinionated people saying China's done this for a while. I'm not disagreeing with any of that. What I'm saying is things forget the reason why Trump's doing. I'm not debating it. I'm saying the outcome is pain and hope it gets better. You hope that this goes away and that Trump gets to zero. Zero. Everybody wants that, by the way.

[Dr. John Deloney]

Yeah.

[Rachel Cruz]

I don't care what side of the aisle. You're sure.

[Dr. John Deloney]

Sure.

[Rachel Cruz]

But I am concerned about the impact on small business. And so what I would say is, I said all that. To say this, if you're a small business owner like a David now is a great reminder that you cannot control geopolitics. What you can control is socking money away and don't get in debt because David is actually able to weather what could be a really ugly storm because of that. That's my whole point. So I hope all of you didn't get your, your feathers ruffled. The point I'm making is you gotta be able to withstand economic ups and downs that sometimes are policy driven. So hopefully this all gets settled pretty soon. But make no mistake folks, the deal with China, it affects more small businesses than any other country. So hopefully it works out. Crossing my fingers.

[Dave Ramsey]

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[Rachel Cruz]

Well, you know, some days we have a fabulous audience. Most days for the show we have a fabulous audience. Comes to the lobby here at Ramsey Solutions and we can see these fine people looking through the glass. We go out and say hi and all that kind of stuff. And today happens to be a birthday day. We had a lot of birthdays, two birthdays. And so we had young Millie who was 28. And now we just met the fabulous Carol who just turned 80 a couple days ago. And she's got the team out there and notice the glasses. She's got a sash. What do you call that? She's got a tiara and she's got these fabulous glasses. James.

[Dr. John Deloney]

She's hating this right now by the way.

[Rachel Cruz]

Carol looked as though she was in shock, James. She's very embarrassed by all the attention. And so one of the party that she's with loaned me their glasses. So I wanted to say a special happy birthday to you. Carol. You look fabulous. You don't look a day over 50. And we're, we're very blessed that you're here.

[Dr. John Deloney]

And, and, and they're about to hit the town. They're gonna go to. You should meet them at Broad on Broadway.

[Rachel Cruz]

Actually, I'm gonna ask James if I can take the rest of the show off. And I'm just. You look like you're ready to play Benny and the Jet jets or something right now. Bitty and the Jets. So there you go. There you go. How about that? Very fun stuff? So happy birthday again.

[Dr. John Deloney]

So fun.

[Rachel Cruz]

So fun. When people spare spend their special day with us.

[Dr. John Deloney]

I know we get anniversary, we get honeymoons sometimes.

[Rachel Cruz]

Yeah, we do.

[Dr. John Deloney]

That's always the craziest one. I'm like, I can't believe you're here on your honeymoon.

[Rachel Cruz]

The Ramsey show question of the day is brought to you by why Refi? Why Refi offers a different approach to paying off your defaulted private student loans with a low fixed rate. For less stress, go to yrefi.comramsey that's the letter y r e f y.com ramsey. It may not be available in all states.

[Dr. John Deloney]

All right, today's question comes from Aiden in New Mexico. My wife is a contract business consultant and is also self employed as an artist. When it comes to paperwork, she's very disorganized. It has gotten to the point where I have taken my tax documents to a tax preparer twice because I didn't want the IRS auditing me. I beg her every year to get her stuff together and to file on time, but it never happens. Which leads to arguments. How do I get her to understand the seriousness of this situation? Oof, that's tough. Well, it's taxes. I'm like, it's back to taxes. Yeah, but you got to do it.

[Rachel Cruz]

Yeah. And that's what I was going to say. Like, so this is a relationship issue, but in this situation it's not you coming to the, to the table with a, hey, let me tell you about these baby steps Let me tell you about this Ramsey plan. I'd like to get us on a budget. Like, this is the federal government, this is the law.

[Dr. John Deloney]

Yeah.

[Rachel Cruz]

There's a wiggle room here. So it seems like it needs to be a reality check. This isn't trying to get her on board.

[Dr. John Deloney]

Right.

[Rachel Cruz]

This is like, we will go to jail.

[Dr. John Deloney]

This is the law.

[Rachel Cruz]

And I don't think I look good in orange, sweetheart. You know, or whatever you got to say here. This comes back to a relationship thing. But I hate to make it so simplistic. I want you to weigh in, but I think it is hate. This is super serious. This isn't my opinion. We have to do this. Let's make this a lot less difficult by. Let's get all our stuff together and be, be on the same page.

[Dr. John Deloney]

Yeah. And I think self awareness is huge because she's an artist. And I'm not, I'm not pointing fingers, but I do think there is a.

[Jade Warshaw]

I think that's a fair point.

[Dr. John Deloney]

When you are an artist, there is a little bit more of a free spirit within you. Right. Numbers is usually not your strength and vice versa. People that are great with numbers are terrible usually at being creative. So it's, it's a. Again, it is how you were wired and gifted. And then I think it is a self aware adult to say, hey, I have things and weaknesses in my life and in my personality. I'm going to be an adult and I have to obey the law. But also what systems can I put in place to help me in those weaknesses because I'm not naturally good at all of this. Right. She's very disorganized is what he said. So. So that would be more of the conversation of, hey, what can we do to help you? It's not a point the finger at you constantly. It is, hey, yeah, this is the law, so it has to be done. So what systems can we put in place together? And as the husband, I'm here to help you. And I mean, and he's like on his own where he's like, I'm just taking my tax documents and over here, which I get because he doesn't want to go to jail either. Right.

[Rachel Cruz]

So he's got a hedge at his bet.

[Dr. John Deloney]

Yeah, seriously. But I think it's. It is, hey, how can I help us help you put some systems into place? But there is a point that she has to be an adult. Right? Like you can, you can be on that. You can, you can carve a situation in a conversation a certain way to A point. But there's also a point, Kim, with all of this, especially the law, but then other things of, like, my wife just continues to spend more. There's just a point that, like, you, you're not able to change that person and they have to be the adult. And it's sad when they're not. But we see that a lot around here.

[Rachel Cruz]

Really tough situation. Thanks for sharing the question with us. Knoxville, Tennessee, the home of Rachel's alma mater. Sam is there. Sam, how can we help?

[Joshua]

Yes, I have a question for you. Regarded to my Truck have a 2001 truck, and it just rolled out of warranty. I intend to keep the truck for a longer period of time, or at least I hope so, and was offered an extended warranty by the dealership. And so what I did is added up all of the cost of repairs that wouldn't have been covered or were covered by warranty that no longer would. And it came out to about 8,800 bucks in the four years that I've owned the truck. So it hasn't been necessarily super reliable, very expensive to repair. And as I intend on keeping the truck or want to keep the truck, I kind of want to explore my options. Should I buy this warranty for $5,600? Should I risk it, continue driving the truck for another hundred thousand miles without warranty, or should I go out and get a new truck with a fresh warranty? What's your opinion? And kind of just want to gauge a direction to go in.

[Dr. John Deloney]

What's been the repairs? I mean, about 2,000 a year is what it ends up being. What has it been?

[Joshua]

Yeah, it's really little stuff, to be honest with you. It's the motor in the tailgate. It's got one of these automatic tailgates. It was the air conditioning control module in the dash. It was a sensor in the, I guess the parking sensor system.

[Dr. John Deloney]

Yeah, yeah.

[Joshua]

What I'm concerned about. Go ahead, go ahead.

[Dr. John Deloney]

Well, I was gonna say, I mean, you know, as you kind of look through this from a math perspective, it's less than like 200 bucks a month is what it ends up being, which just feels expensive. Like, if the stuff isn't being fixed, like, that's one issue. But I'm not a big fan of extended warranties because I'm like, it's the thing should work. And if not, I would rather it be in my court again. Unless there's some crazy recall right now, Sam, and they're like, you know, giving you some discounts on the extended warranty or whatever it may be. But I. We usually factor in cars. We have a sinking fund that we've set up that if anything goes wrong with the cars, we use that sinking fund. So, again, for yours, it's coming out to be around 200amonth. So I would probably just set some money aside and then hopefully most of this gets fixed. Because, I mean, the fact that you keep going in and in for repairs is. That's frustrating.

[Joshua]

Yeah, no, you're right. And for me, it's not really a money issue. You know, the truck's paid off.

[Sean]

Right.

[Joshua]

The 200 bucks a month is really negligible based on our income. It's more kind of a, I guess, a psychological field. Do I keep throwing money at a truck?

[Dr. John Deloney]

That's a different.

[Rachel Cruz]

That's where I came down.

[Dr. John Deloney]

Yeah, that's a different question.

[Rachel Cruz]

So that's where I came down. I agree with everything Rachel said. I'm going to come down on this one and go, I'm the kind of guy. This is the way I'm watching where I'm. I'm not going to keep dealing with this truck. I'm going to go, this thing's a lemon. Or it's an issue with the manufacturer, and they just don't do a good job making the parts. And I'm just tired of this mess for me, because in your situation, I would be in the same boat. Any mechanical work I got to do, I'm not stressed out about it. I got the money set aside. Whatever, whatever, whatever. But it's like, it's time. Time is money. You remember that old phrase, kind of true.

[Dr. John Deloney]

It's a 2001, Sam. Is that what you said?

[Joshua]

Yeah, it's a 2001 with 80,000 miles on it. And it's a. It's a hybrid. And I don't know if you kind of look into some of these hybrid issues, but if the hybrid motors or.

[Dr. John Deloney]

The 2021 or no 2001. I didn't know they were making hybrids in 01. No, it's a 21.

[Joshua]

2021.

[Dr. John Deloney]

21. Yeah. You kept saying, oh, one. I was like, man, they were ahead of their game with 2021.

[Rachel Cruz]

I couldn't spell hybrid.

[Dr. John Deloney]

Okay, so 2021, that makes way more sense. I was like this.

[Rachel Cruz]

I get rid of it. I'd sell it, okay. And that's somebody else's problem. And I'd go get myself a truck that had a much higher rating, that I'm not in the shop all the time. And again, it's just the nick, these are like little paper cuts. It feels like, what a nuisance, man. I'd be like, why would I buy your warranty? How about you make a better, better truck? That's what I'd have said to the dealer. But I can be sassy that way. But I feel like that's true.

[Dr. John Deloney]

Absolutely.

[Rachel Cruz]

I got an idea. Why don't you make a better truck that I don't need all this warranty because all the stuff seems like it's hard. Little piddly stuff. So you got the cash? I'd get rid of the nuisance. Let it be somebody else's problem.

[Dr. John Deloney]

All right, Dave, you have some strong opinions, possibly. Yeah, I think so. Okay. Because you really prefer credit unions over big banks. So why? Why is that?

[Dave Ramsey]

Well, credit unions, for one thing, are nonprofit, 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 that's what's more important than that, though, is the fact that the customer is the owner, changes the spirit on the credit union. So I find very few credit unions that aren't very customer centric.

[Dr. John Deloney]

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.

[Dave Ramsey]

You know, that's why we're partnering with them, 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.

[Dr. John Deloney]

Yeah, absolutely. And you're right. Their customer service is unbelievable. Winston and I just signed up and we got an account. Yeah. And I'm not kidding. It took. 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. 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. 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, you can do with [e-mail] or on their app. And you'll have free access to over 33,000 ATMs.

[Dave Ramsey]

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.

[Dr. John Deloney]

Yeah, you guys, it's so easy to join Fairwinds no matter where you live. So go to Fairwinds.org Ramsey to learn more. That's F A I R W I n d s.org RAMSEY all right, business owners, last call.

[Dave Ramsey]

The pre sale for the brand new book build a business You Love ends April 15th. Pre order now and get over $350 worth of free bonus items to help you hire smarter, lead stronger and grow faster. This is not theory. It's the system I use to grow my company from nothing and the same framework we've coached thousands of business owners through. You can only get the [e-mail] store, so don't wait. Pre order now.

[Rachel Cruz]

All right, folks, when we talk about money and relationships, it just brings up all kinds of emotions for people because that's where so many relationships can go bad. I mean, we take calls all the time on the show where it poses as a money question, but it's really now become a relationship issue. Money fights are the leading cause of divorce. Kids go into debt for a job. We're isolated, don't feel like we can live the life we want to live because we're so strapped. But it's possible to break that cycle in your money and in your relationships. That's why Dave Ramsey and Dr. John DeLoney are headed out on the money and relationships tour. They're going to be handling all of those issues and taking some really fun questions, things from the audience that they vote on. It's going to be a very different format and they're coming to a city near you. Louisville, April 21, Durham, April 23, Atlanta, April 25, Phoenix, May 5, Fort Worth, May 7 and Kansas City on May 9. You can get your tickets to join them [e-mail] tour. That's ramseysolutions.com tour. If you're listening via podcast or watching on YouTube, click the link in the show notes to get your money and relationship tour event ticket with Dave Ramsey and Dr. John DeLoney. Back to the phones we go. Bozeman, Montana is where Bear waits for us. I gotta tell you, Bear, I wish my name was Bear. Bear Coleman. I think I'd Be a much bigger deal. I'm doing well. How are you?

[Joshua]

Oh, still upright and breathing, so I'm quite happy.

[Rachel Cruz]

Say that again.

[Joshua]

I'm still upright and breathing, so I'm quite happy.

[Rachel Cruz]

I love you, Bear. I hope that doesn't make you uncomfortable. Is that your given name or a nickname?

[Joshua]

I used your guys as anonymous feature.

[Rachel Cruz]

Oh, so you named yourself.

[Joshua]

And who. Who do I know who doesn't know my nicknames? And I love it most of my life from family. So I love that.

[Dr. John Deloney]

We appreciate that. Sometimes we'll give an anonymous name. If it's a personal question. We love that. So that you can see this man, Bear from Bozeman. That's a. Ken and I will come back at the end of the segment, tell you what our anonymous name would be.

[Rachel Cruz]

That's. I'm gonna pick a name, my anonymous name. That's gonna be great. We'll reveal that at the end here. This is gonna be great. But Bear, first and foremost, how can we help you?

[Joshua]

Well, I have some questions about job offers and I don't want to sink myself because I. How'd you say? I'm trying to get ahead and I've been wise with my money, I believe. And I would like to get farther ahead given that I am currently single and own own property and looking at buying more property. But where? There's a brand new job offer that came up and I don't want to jump and then make purchase and then all of a sudden I'm finding that I'm in trouble.

[Rachel Cruz]

Why would you be in trouble? What could go wrong? Well, if I take this new job. Okay, if.

[Joshua]

If the job goes wrong, is there.

[Rachel Cruz]

Is there in your mind, is there a high percentage chance, medium percentage chance, or low percentage chance that the job could go wrong?

[Joshua]

Probably low.

[Rachel Cruz]

What's the job? Hello? I think the Bear has stepped in a trap. That's unfortunate. We're going to put him on hold.

[Dr. John Deloney]

Oh, shoot.

[Rachel Cruz]

If we can get Bear back, I have. I think he stepped in a phone trap. He's gone. He was there and now he's not. That's really unfortunate. Let's go to Tyler in Des Moines, Iowa. Tyler, how can we help?

[Joshua]

Hey, Ken. Hey, Rachel. Thanks for taking my call.

[Rachel Cruz]

You bet. What's up?

[Joshua]

So I'm 26 and my fiance and I are getting married in a month or so. And we have a lot that we purchased with cash and we're waiting to build and we're just kind of wondering, is it better to build or wait or like build this summer? Or buy a house in cash since I were so young.

[Dr. John Deloney]

Okay, so you have a lot and then you have cash, extra cash. And you're saying, should we take this cash and build on the lot or go buy a home?

[Joshua]

Yep.

[Dr. John Deloney]

Okay. Is. Is the cash that you guys have saved enough to buy a home that's reasonable for you guys?

[Joshua]

So, like, I can give you some numbers. Just.

[Dr. John Deloney]

Yeah, it's great.

[Joshua]

So, like, so we have like 30, 000 in single stocks. I know you guys don't like single stocks, but that's okay.

[Dr. John Deloney]

Yeah, 30, 000.

[Joshua]

The lots were at 75. So we could sell that maybe. Money market is 120,000. Checking. We have about 12,000 in, and our cars are worth.

[Dr. John Deloney]

Okay, well, tell me this. So that's about. I mean, but not including the lot, you got 150, but that I would want you to have an emergency fund out of that. So we're down to maybe 100. Do you. And if. And if you sold the lot, could you buy a home for 175 in your area? That you guys would be happy with.

[Joshua]

It? Probably no less than 250. Okay, so, like, so we're currently living in a trailer, and I could sell that for another 30.

[Dr. John Deloney]

Okay. Yep. Okay. So what I would probably do, honestly, Tyler, is. Is rent. I'm not a big fan of motorhomes because it is something that goes down in value so quickly. There's a part of me that would just sell that, and then you guys go rent somewhere for a year or two, stock up some cash, kind of see where you're at. And I wouldn't. I don't think I would. I wouldn't make big moves on selling the lot and all of this because you guys could get a few years down the road and want to build depending on, you know, the situation. Is the lot somewhere you would want to live?

[Joshua]

Yeah, it's about five minutes from where I live now, so.

[Dr. John Deloney]

Yeah, but you guys like the area and all of that, then where the law is. Okay. Do you guys. Would you guys want to build on it eventually? Is that like a dream you have?

[Joshua]

Yeah, like, we were planning in July, but with tariffs and everything, we're not sure because we were trying to keep our mortgage payment at 2500 because we're seeing like 9 to 10,000, like, coming to our checking every month.

[Dr. John Deloney]

Okay, good. So they're trying to keep you in the. Good. For sure. For sure.

[Joshua]

So.

[Dr. John Deloney]

Okay. Yeah. Well, I would either just stay put where you guys are for a year or sell the trailer and go rent somewhere for a year or two. I don't think there's any big rush. And I think to your point, with everything that's kind of going nuts right now, just kind of letting all that settle and then look up and say, okay, either we're gonna just, you know, buy a home and live in it for five, six years, you know, get our family established and then build our dream home on this lot years down the road, or if you guys have the cash available and you want to do the home buying or the. The home build process, then you could do that. But I don't think I would sell this lot right now. No, I don't. I wouldn't do that. I would. I would be renting until I knew what my next probably five year plan would be, housing wise.

[Joshua]

Okay.

[Dr. John Deloney]

Yeah.

[Joshua]

Okay.

[Dr. John Deloney]

So that'll. And I think too renting, especially your first year of marriage and stuff, it's just. It's just easy having people kind of take care of what needs to be taken care of, and you're not having to deal with homeownership and all of that. So that's probably what I would do. Tyler.

[Joshua]

Okay.

[Rachel Cruz]

Thank you.

[Joshua]

I appreciate it.

[Dr. John Deloney]

Yep, absolutely. Thanks for the call.

[Rachel Cruz]

Yeah, thank you so much. Do we have time? Can we. Do we. Do we think we have Bear. We're gonna go back to Bear. We'll see if we can do this really quick. Let's see where. Where is Bear? There he is. Line four. Bear, we got you back. We only got about a minute. Here's where we left off. What is. What would have to happen for your new job offer to truly go bad? What would you have to do? Or what would have to. To be a circumstance that would cause that job to just kind of go away?

[Joshua]

Well, how'd you say I. I do very skilled and specialized utility work, and I'm sitting pretty all right right now with about 70,000 a year.

[Rachel Cruz]

Right. And could you pop back into that work if it didn't work out, this new job?

[Joshua]

It could.

[Rachel Cruz]

And how much more will a new job pay? I've got just a little bit of time, so I'm asking quick questions. How much more would this new job pay you than you're making now?

[Joshua]

About $7 more an hour. Probably 15,000 more a year.

[Rachel Cruz]

So it's low risk. Do you want to do it or do you not want to do it? What's your heart want to do? Got to give me an answer for the higher. Go for the higher.

[Joshua]

The higher pay. But I would.

[Rachel Cruz]

I'M for it. I think it's low risk. I'd like to see you try it. Bear, we know we can fall back on a very well paying job with a highly sought after skill. I like it. No risk there, little risk. So go for it.

[Dr. John Deloney]

You're single, you're. If you're home for a little bit, that's okay. And then if you hate it.

[Rachel Cruz]

That's exactly right. All right, real quick, what's your anonymous name? I got mine.

[Dr. John Deloney]

Oh, I'm going. Lillian. I went with the nature theme.

[Rachel Cruz]

I thought about animals. Kamado, koala, kangaroo. None of that worked.

[Dave Ramsey]

Are you sick and tired of being sick and tired? You can take control of your money and your relationships. And it starts with just one night. Join me and Dr. John DeLoney live in a city near you on the money and relationships tour. We're covering the real life stuff that matters so you can break the cycles that have left you stuck. It's coming up fast, so get your tickets for Louisville, Durham, Atlanta, Phoenix, Fort Worth, or Kansas [e-mail] tour today.

[Rachel Cruz]

Lillian. Huh? That's the anonymous thing.

[Dr. John Deloney]

Going, going flower.

[Rachel Cruz]

Where does that come from?

[Dr. John Deloney]

Well, it's my grandmother's name.

[Dave Ramsey]

Oh.

[Dr. John Deloney]

And I went. I went nature.

[Rachel Cruz]

Okay.

[Dr. John Deloney]

I thought Bear, you think Lillian is nature. Lillian. A lily.

[Rachel Cruz]

Oh, I see.

[Dr. John Deloney]

But it's an extra little.

[Rachel Cruz]

Just a little extra there something. Okay, let's go to Deborah in Santa Barbara. Deborah, how can we help today?

[Deborah]

Hi, guys. I need some advice. I'm in trouble.

[Rachel Cruz]

Oh, no. You sound like you're in the corner. You remember like when we were kids, your parents sent you to the corner? Sound like you might be in the corner. Deborah, let's go. No shame in your game. What's going on?

[Deborah]

Yeah, definitely on the cusp. Okay, I have two houses.

[Dr. John Deloney]

Okay.

[Deborah]

One I was renting out. The renter went away, totally trashed the place. Left the place broken, haven't fixed it. Had a lousy, lousy, horrible, horrible 20, 24 year. And it's left me with $70,000 worth of credit card debt.

[Dr. John Deloney]

Because of the house or because of other things?

[Deborah]

The house, trying to get people to help get it repaired, that kind of thing. It's still sitting. Not rep been eight months, so I've lost that income. And then my income went down from five days a week to three days a week. So that also hit me. Plus I had like knee surgery. I have kids living with me. I have grandchildren living with me. And honestly, the money I have now, I can't make the bills every Month. And so I've been putting my utilities on the credit card and that kind of thing. And this is over a year, and it's, it's all added up and. Okay, here I am.

[Dr. John Deloney]

All right, this house. Let's talk about this house. Deborah. The, the rental, how much do you owe on it?

[Deborah]

On, on the rental? I owe zero. Oh, it's paid for. The, it's paid for. I inherited from my father.

[Dr. John Deloney]

Oh, wow.

[Rachel Cruz]

Okay.

[Deborah]

I figured, I figured when I'm 65, I'd move there and retire and there you go. Have no mortgage. Meanwhile, my other little home, which is condo, I owe about $114,000 on.

[Dr. John Deloney]

Okay.

[Deborah]

And that's the one I'm currently living in.

[Dr. John Deloney]

Okay. How much is the. Is the house that your dad left you, how much is that worth?

[Deborah]

Oh, probably about 650,000.

[Dr. John Deloney]

Okay. How much is the condo worth?

[Deborah]

Probably about 400,000.

[Dr. John Deloney]

Okay. And where do you want to be long term, the condo or the home?

[Deborah]

Well, in the home, because condos, upstairs kind of thing, you know.

[Dr. John Deloney]

Yep. For sure.

[Deborah]

I like where I live, but like I said, I've got, I've got grown children living with me. We're talking 30s.

[Dr. John Deloney]

Why are they living with you?

[Deborah]

Because they got no place else to live. One, one injured his back. He's got like a 10 vertebrae fusion. He's looking to get on SSI. He hasn't worked in a couple of years. And then the other one, he's got three kids, 12 year old, a 10 year old and a 7 year old. And believe me, we're. We don't have room. You know, I've got people sleeping on the couch, you know, but I've been paying all the bills and I've asked for help. They don't help. One of them can't. He just doesn't even have a job anymore. The one that does work construction, he does have income, but he doesn't contribute and he doesn't want to help do the repairs. That was part of the thing is he was supposed to repair the, the one house, the rental house, and he's been. I guess he's been baloney, giving me a bunch of baloney for months on end here.

[Dr. John Deloney]

These are sons.

[Deborah]

These are my sons. My blood son.

[Dr. John Deloney]

Yep. Yeah, it's heartbreaking. I mean, it's, it's a, it's a mess. The boundaries here are completely. Yeah, intertwined. And it's not working for you, Deborah. And so you're not able to help people when you're drowning and you're drowning, you're putting your utilities on credit cards. You can't afford this life anymore, so. Exactly. So they need to leave. I mean, like, like, yeah, there has to be a conversation of I can't support you, nor should I. They are grown adults. And, and you need to give them a Runway, Deborah. 30, 60 days. And because you can't afford it, like you guys, you can't afford this situation. And so, so what I would do. Do you want to be in the. Would you want to be in the house? I mean, I would sell the condo, go move in the debt free house. You know, you have 200 and then you have $275,000. Pay off the credit cards, you have 200 grand. And now you get to live your life like.

[Rachel Cruz]

This is an immediate turnaround, Deborah. And it makes the most sense.

[Deborah]

Yeah, that. And that would be the rest of my income for the rest of my Life. I am 62 right now.

[Dr. John Deloney]

What do you have in retirement?

[Deborah]

Yeah, about 6,000.

[Dr. John Deloney]

Okay. So you. So yeah, so you're gonna have to up your income. You are gonna have to work longer, but you'll have that 200 grand. And that's not going to be enough probably for retirement long term. So you are going to have to be working some more. But this will, this will fix a lot of this mess right now.

[Deborah]

Yeah, that's, that's what I'm. I'm trying to figure out.

[Dr. John Deloney]

Yeah.

[Deborah]

So that I'm literally having to borrow money even to pay the minimums right now.

[Dr. John Deloney]

Yeah.

[Deborah]

And that's from other people.

[Dr. John Deloney]

Yep. Yep.

[Rachel Cruz]

Well, there's nothing to figure out. I mean, I want you to understand that you have one clear option here. And it's the option we just gave you. And this is going to get you out of this desperate situation, this wacky situation, quite frankly. It's not desperate, it's just wacky. And set you up for the future now. You're right. But you at least got a $200,000 head start. And you're going to have to work and you're going to sock away as much money as possible. We'd love to see you get a smartvestor pro if you do not have one. And let's map out what do we need to do over the next five to seven to eight to maybe 10 years to make sure that you have more margin as you age. But at least you got it paid for. A home. That is also a tremendous asset for you as well.

[Deborah]

Yeah, no, it's a blessing. And I, I know it is, but you know, and what about my grandkids, though?

[Rachel Cruz]

What about them?

[Deborah]

Make my grandkids homeless.

[Rachel Cruz]

That's not your problem. I know that sounds heartless. It shouldn't, but I feel like it does. But that's not your problem. You've got. Those are grown men. They need to step up and take care of business.

[Deborah]

No, I agree on that. And I don't feel like I'm doing them any favors because I take care of too much. And I've tried to back off of that, too, because, well.

[Rachel Cruz]

But that's the answer to your question.

[Deborah]

They don't care.

[Rachel Cruz]

But you just answered your own question, by the way, more effectively than I did. Your little speech you just gave is the speech you need to remind yourself when you say, what about my grandkids? I don't want to be this big, mean grandmother that kicks him out on the street. That's not what you're doing, number one. But number two, you need to remind yourself of that speech you just gave. It was a great speech.

[Deborah]

I'm trying.

[Dr. John Deloney]

And the dad of the three kids has a job, correct?

[Deborah]

Well, he does construction, so he works here and there.

[Dr. John Deloney]

That kind of. Deborah, you said. I mean, okay, yeah, he can work whenever he wants. And this isn't. I'm being a little harsh on you, Deborah, because you've allowed it, right? He's. He's. He's living the best life.

[Rachel Cruz]

Yeah.

[Dr. John Deloney]

Everything's paid for. He works when he can. He doesn't pay bills. He pays. He does nothing.

[Rachel Cruz]

This guy's literally the character in Wedding Crashers. Ma, me, loaf. I mean, he yells and you come running, you know, Might as well give him a little silver bell on.

[Deborah]

On. On the big things. And. And the thing is, he. He actually made more than I did last year, and he still can't help me with utilities or nothing like that. And I'm begging him.

[Dr. John Deloney]

I'm begging him. You know what?

[Rachel Cruz]

He's a. Yeah, well.

[Dr. John Deloney]

Well, that. That's where, then. That's a boundary, Deborah, you have to set for yourself. You've asked. You can't control what he's doing, and so now you have to control what Deborah can control. And you have to set yourself up in the next. What. What Kim just said the next eight years to allow you to win, because at the end of the day, they're not helping you. Right? It's not like you're falling back on. On them.

[Rachel Cruz]

So he can't help you with utilities. You can't help him anymore, period. It's a grown man. I wish he. I'M telling you, I wish I could have a chat with this guy. I really do. This is. This is embarrassing. He ought to be embarrassed how he's treating his mother.

[Dr. John Deloney]

Now.

[Rachel Cruz]

I understand. I'm talking about your baby. I get that. But you called, and you're looking for advice, and your heart is literally getting you in trouble.

[Deborah]

I know it. I know it. And like I said, I depended on him to help me, like, you know, with the repairs on the rental house. So Deborah says we're shooting ourselves in the foot.

[Dr. John Deloney]

So tonight, Deborah.

[Deborah]

Got it.

[Dr. John Deloney]

You need to sit them down and you need to let them know, hey, in the next 60 days, I'm putting the condo up for sale. I can't afford this anymore, and I'm going to have to make some hard calls because I have nothing in retirement, and I'm going to have to do what's best for me in this situation. And so that is selling the condo, moving to the home, doing some repairs in between. It's not going to probably be perfect when you move in, but at least you have a mortgage payment or a rent payment. So, gosh, Deborah, I'm sorry, but that's. That's what I would do. Cut up the credit cards. Don't keep going down that mess that's getting you more and more. And. And when you don't have the. The temptation of the credit card, then your feet are to the fire, and that's really going to force you to make some hard decisions, which is good. You need some of that.

[Rachel Cruz]

You ought not to treat your mama that way, Sa.