Managing Money Well Matters At Every Income Level

Summary

The Ramsey Show – Episode Summary

Episode Title: Managing Money Well Matters At Every Income Level
Date: February 27, 2026
Hosts: Ken Coleman & Rachel Cruze (Ramsey Network)

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Episode Overview

This episode of The Ramsey Show centers on practical money management and navigating tough financial scenarios, regardless of one’s income or background. Hosts Ken Coleman and Rachel Cruze answer live calls from listeners with questions about debt, career transitions, family boundaries, real estate stress, inheritances, and more. They provide actionable strategies, emotional support, and Ramsey-style tough love—as always, with an eye towards building wealth, taking control, and living debt-free.

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Key Discussion Points & Insights

1. Getting Out of Debt at a Low Income

[00:13–09:00 | Lucas in Austin, TX]

• Situation: Lucas, 28, single, $30k debt (about half credit card, half student loans); earns $32k/year.
• Advice:
  • Increase income quickly: Ken recommends getting a second job or freelancing to bring in an extra $2,000–3,000/month:
    "You need to make an additional two to three grand a month. That would be the goal that I would give you." (03:24, Ken)
  • Use the debt snowball: Rachel urges starting with a $1,000 emergency fund, then attacking debts smallest to largest, even if it requires temporary hardship: "There's something so encouraging about this...in ten months, you could have all your debt paid off." (06:45, Rachel)
• Memorable moment: Ken gifts Lucas his book, Find the Work You're Wired to Do and a 20-minute Clarity Assessment (04:51).

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2. Family Boundaries & Mortgage Chaos

[10:32–20:22 | Alyssa in Atlanta, GA]

• Situation: Alyssa’s housing is tangled with her mother and her mother’s partner, who wish to swap or share homes amid a breakup. Alyssa pays $2,600/mo, wants to pay debt, but feels manipulated by her mom.
• Advice:
  • Set hard boundaries: Rachel suggests Alyssa consider moving out entirely to avoid being entangled in family drama. "I almost would just move out...be a complete bystander in this." (14:22, Rachel)
  • Emotional validation: Ken comforts Alyssa about feelings of guilt: "You're a good daughter. Maybe your mom will make you feel otherwise, but you are making really good decisions for your future." (18:30, Ken)
• Book Recommendation: Boundaries and Necessary Endings by Dr. Henry Cloud.

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3. Real Estate Stress & Job Loss

[21:25–31:06 | Tiffany in Phoenix, AZ]

• Situation: Tiffany owns a duplex and a triplex, both non-income-producing; owes $260k and $406k; just lost a $90k/yr marketing job due to stress.
• Advice:
  • Urgent sale: Ken advises aggressively seeking new, trustworthy real estate agents—even suggests knocking on neighbors’ doors for investor buyers:
    "It's like taking a giant millstone off your neck...you need to get out of these things." (29:48, Ken)
  • Career recovery: Ken prompts Tiffany to ask her old employer for a second chance and to actively look for a comparable job to her previous income.
• Insight: Real estate investments with high leverage and low cash flow can erode mental health and career stability.

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4. The Car Dilemma in Marriage

[33:06–42:45 | Eric in Dayton, OH]

• Situation: Eric wants to sell his paid-off truck (~$32k value) to pay off his wife’s Durango and go car-payment-free. His wife is fearful of buying a used car.
• Advice:
  • Vision casting and data: Ken recommends Eric address his wife’s fears with actual research, used car shopping, and a clear emotional appeal: "We just free up $1,000 a month in our budget. We can easily cover [maintenance]." (40:21, Ken)
  • Budget unity: Rachel pinpoints the root of the issue:
    "You guys need to be doing a budget together every month...you're running on two separate tracks." (42:29, Rachel)

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5. Health Crisis, Credit Recovery & Purpose

[44:23–52:23 | Nate in Colorado]

• Situation: Army vet, survived a critical illness, depleted family savings, wife about to be debt free, but his personal credit cards are in default.
• Advice:
  • Credit repair gameplan: Rachel urges systematic organization, negotiating collections, and continued use of the debt snowball post-emergency.
  • Validation: Ken provides emotional support: "You’re a hero...you're a good American." (51:15, Ken)
• Memorable: Nate’s perseverance through severe health challenges while providing for a family.

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6. Inheritance and Home Improvements

[54:25–63:32 | Brian in Denver, CO]

• Situation: Brian is set to inherit around $3.5 million (complex estate) plus a $100k cash payout and a giant 73-lb. salmon mount from Grandpa.
• Advice:
  • Permission to spend wisely: Rachel gives the green light to use a portion of his brokerage for value-adding home improvements, given his solid finances.
  • Maintain discipline despite windfalls:
    "Act like none of it's coming...don't slow down your own savings and investing." (62:26, Ken & Rachel)
• Memorable Moment:
  "My grandfather's Big Hog...now I have my grandfather's Big Hog and I don't know what to do with this." (54:57, Brian)

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7. Travel Perks & Credit Card Boundaries

[65:34–69:02 | Joseph in Columbus, GA]

• Situation: Retired, traveling with his wife, considering a credit card for airport lounge access.
• Advice:
  • Say no to credit cards, even with perks: Rachel:
    "I just don't like the credit card industry. I don't like playing their game...all those perks are paid for by people stuck in debt." (67:53, Rachel)

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8. Should You Tap the Emergency Fund for a Job Opportunity?

[69:04–74:22 | Sarah in Las Vegas, NV]

• Situation: Sarah's husband needs a newer car for a commission job that could double his income, but it would require dipping into their emergency fund.
• Advice:
  • Not an emergency—plan and delay: Rachel and Ken encourage saving aggressively rather than draining the fund unless absolutely necessary. "I wouldn't consider this an emergency...this is a self-sacrifice, not an emergency." (73:11, Rachel)
  • Creativity in cash-raising: Sell stuff, pick up extra work, set a $1,000/month savings target.

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9. Supporting (or Saving) an Irresponsible Parent

[76:29–85:02 | Brandon in Salt Lake City, UT]

• Situation: Brandon and his physician wife (soon earning $500k) expect to support his financially troubled, secretive father.
• Advice:
  • Boundaries and proactive planning: Rachel and Ken urge a clear plan of support, defining limits (gifting items/rent, not cash), and not carrying a parent's debt: "You only have to carry the burden of taking care of Dad when he can no longer take care of himself, not his mistakes." (84:51, Ken)

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10. Trusts, Inheritance, and Family Ethics

[86:11–93:31 | Eileen]

• Situation: Eileen realizes her late husband's family trust will skip her and go directly to their daughter upon his death; wonders if it's ethical to ask the daughter to split the inheritance.
• Advice:
  • Let the trust run its course; don’t encroach when the structure is clear and pre-set.
  • Set up independent security (life insurance, investments) rather than depending on inherited money.

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11. Investment Account Mix-up: What Now?

[96:23–101:59 | Elise in Virginia]

• Situation: Husband's Roth 403(b) rolled over to traditional IRA by mistake, with $1,000 new growth; facing potential tax hit.
• Advice:
  • Try to recharacterize contributions before IRS deadlines; seek a fresh opinion from a Ramsey-trusted tax pro.
    (98:12, Rachel & 98:32, Caller)
  • Document whether the error lies with the institution or the taxpayer, possibly involving a lawyer if significant loss looms.

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12. Engagement, Later-Life Marriage, and Home Choices

[102:06–105:25 | Bruce in Charlotte, NC]

• Situation: 62, engaged, both own homes; fiancée makes 3x more, has high credit card debt, wants to merge households.
• Advice:
  • Have frank conversations about preferences, space, and blending finances.
  • In later-life marriage with significant assets/debt, consider legal steps (prenup) and ensure boundaries with adult children.

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13. Should You Cut the Netflix?

[106:33–109:32 | Marissa in Louisiana, Listener Email]

• Situation: Debating with husband over whether cutting "small" expenses is worthwhile for debt payoff.
• Advice:
  • Sacrifice level should match urgency and timeline; cutting small expenses helps but may be more a behavioral signal than a huge math win in marathon debt journeys. "If you can get it out in nine months, cut everything and go all in." (107:45, Rachel)

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14. Medical Billing & Insurance Hassles

[109:57–115:59 | Logan in Dallas, TX]

• Situation: Paid max out-of-pocket for childbirth, but still getting $1,400 in hospital bills due to hospital-insurance dispute.
• Advice:
  • Stand your ground; make hospital and insurance deal with each other and don’t pay what you don’t owe.
    "Show up in person...say, this is your bill; you need to figure it out." (113:20, Ken)

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15. Deep Credit Card Debt After Divorce: Now What?

[118:22–126:08 | Amir in Philadelphia, PA]

• Situation: $55k credit card debt, $20k car loan, earning $60–$65k, recent divorce.
• Advice:
  • Sell the car (even at a loss) to shed the monthly payment; shift focus to an emergency fund, then debt snowball (smallest to largest).
  • Work extra where possible; cut expenses ruthlessly; negotiate collections if they happen.
  • Belief and structure are the first steps; use tools like "EveryDollar" and "Total Money Makeover" for guidance.

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Notable Quotes

• "Normal is broke and common sense is weird." (00:13, Ken Coleman)
• "While you are in the process of discovery...you still need to be making more money." (03:05, Ken Coleman)
• "You are a good daughter. And you are making really good decisions for you and your future." (18:30, Ken Coleman)
• "You only have to carry the burden of taking care of dad when he can no longer take care of himself, not his mistakes." (84:51, Ken Coleman)
• "There's ultimately only one way to financial peace, and that's to walk daily with the Prince of Peace, Christ Jesus." (126:08, Ken Coleman)

Episode Tone & Style

Warm, supportive, persistent, frank, with moments of humor and empathy. Rachel is practical yet empathetic; Ken is direct, encouraging, and focused on actionable steps.

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Perfect For

Listeners looking for financial advice infused with tough love, step-by-step strategies, encouragement, and a focus on values—at any life stage or income level.

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End Note:
You can build wealth, take control, and create a new future, no matter your starting point. The Ramsey principles stress: more income, less debt, healthy boundaries, and intentional, values-based choices, all wrapped in hope and determined action.

Transcript

[Sponsor/Advertiser]

Brought to you by the EveryDollar app. Start budgeting for free today.

[Ken Coleman]

Normal is broke and common sense is weird. So we're here to help you transform your life. From the Ramsey Network in the Fairwinds Credit Union studio. This is the Ramsey Show. The phone number to jump in. 888-825-522-5888. Alongside the lovely Rachel Cruz. I'm Ken Coleman. We're excited to be here to help you today. We started off with Lucas in Austin, Texas. Lucas, how can we help?

[Caller]

Hey, I am calling in because I have. I was looking for a way to, like, manage my finances better. And I'm 28 years old. I'm single. I have some credit card debt as well as, like, some student loan debt.

[Rachel Cruz]

Okay, so just an overall direction is what you're looking for from us?

[Caller]

Yeah.

[Rachel Cruz]

Okay. Yeah. So how much debt does all that total?

[Caller]

So it's probably closer to about 30. 30,000.

[Rachel Cruz]

30,000. Okay.

[Ken Coleman]

How.

[Rachel Cruz]

How much of that is credit card and how much is that student loan?

[Caller]

So it's 14, 500 in credit card and student loan is about 20,000.

[Rachel Cruz]

20. Okay, cool. And how much do you make a year?

[Caller]

I make about $32,000 a year or like 16 an hour.

[Rachel Cruz]

Okay. What do you do?

[Caller]

I work in, like, mobile device repair and sales.

[Rachel Cruz]

Okay. For like, a cell phone company type thing in a store, basically. Perfect. Okay, great. Well, yeah, I'd love for Ken to jump in on just the. The career side because I think you still have so much ahead of you.

[Ken Coleman]

Where do you want to be?

[Caller]

Well, right now I'm kind of in an in between spot because, you know, I like what I do and I like working with, you know, physical technology and things like that. But then, like, trying to transition to something a little bit more, you know, viable for the future. Like what I'm looking into, probably trying to get into more like beta processing and things like that.

[Ken Coleman]

Okay, so have you done enough research to know what. What that could look like as far as position A, position B, position C?

[Caller]

Not yet. I'm still kind of in the phase of trying to figure out, like, which direction to go with it. I mean, I've been looking into more like data science and things like that. So that's kind of where I'm at in trying to transition my career path over there.

[Ken Coleman]

Okay, well, real quick and then. And we'll get back to Rachel here and kind of walk you through what you need to do. But you do need to increase your income. And I'm saying that separate of us, Trying to figure out which long term direction that you're going to go. So while you are in the process of discovery, and I'm going to help you with that in just a moment, you still need to be making more money. Because right now at 28 and single with the debt you have, the one thing you have is time. And you need to make time. So whether that's some freelancing in the same space that you're in or doing some freelance and technology. And again, we're not talking about a career choice. We're saying I need a second job and I need to make an additional two to three thousand dollars a month. That would be the goal that I would give you. So what you would do is say, what can I do now that will allow me to make an additional two to three grand a month? Because you're at 32,000 a year, I believe is what you said. And so you need to increase that and that will allow you to get through the steps that Rachel's going to walk you through. But here's what I give you. Quick advice. I love that you have an idea of the direction you want to go. What I would do is use this idea that I've introduced before called the proximity principle. And it's simply this. I want to get around people that are in the space or spaces that I am considering. And that's lunch, that's coffees, that's hey, will you connect me to somebody over here that you know and you want to do a good old fashioned term paper and you're going to sit with this person and ask enough questions that you could do a term paper on their job. We're talking high school term paper, nothing complex. And what you're doing there is, is you're getting clarity on the role itself, what it takes to win in the role, what it takes to get qualified the role, how I get placed, how I move up. And in doing all of that, your head and heart are going to get connected. The head's the information, the heart will be the emotion and say, I'm excited about that. I'm going to do one thing. I'm going to give you at the end of the call, I'm going to give you my book. Find the work you're wired to do. It has to get clear assessment in it. It's going to take about 20 minutes, going to really help you. So that's my gift to you. Okay?

[Caller]

Okay, I appreciate that.

[Ken Coleman]

Yeah. But listen, more money now, Rachel, he starts making more money. What does that look like to pay off his debt.

[Rachel Cruz]

Yeah, because those are your two big parts of the equation, Lucas, is the income side and the expenses side. But you're probably only bringing home, what, three grand a month?

[Ken Coleman]

Ish.

[Rachel Cruz]

Would you say it's more.

[Caller]

Yeah, it's closer to about 2.

[Rachel Cruz]

About 2,000amonth.

[Ken Coleman]

Yeah.

[Rachel Cruz]

So how are you paying? Are you living at home?

[Caller]

So I live with two roommates. I only pay about $600 a month and I rent two rooms in a house.

[Rachel Cruz]

Perfect. Good for you. That's, that's great. Because the living expenses is usually one of your highest line items in the budget. And so for a lot of people, they're paying, you know, a thousand, you know, even 2,000 for mortgages. I mean, it's just like, it just can get so high. So that 600 is it. Honestly. I mean, that's a great place to be. Because honestly, Lucas, when you leave your job at five o', clock, I would go work somewhere from six to nine and I would do that four times a week and on, and I would do one weekend. And seriously, if you can get two to $3,000, you could have, you could have this all cleaned up in 10 months, which is wild to think you could have all your debt paid off. But you have to have a goal from an income perspective. And that's gonna be your biggest bet. Cause I don't think there's many expenses you probably can cut that's gonna make that big of a difference. You know what I mean? So there is something so encouraging about this that you do have the time and it's just going to be hard. It's just 10 months of just grinding it out. But a lot of people do that, Lucas, sometimes for two, three years to get on the other side of it. But I think that you. Yeah, there's, there's a lot of upside. It's just going to be the work is the equation, that part of the equation that's going to be really big. And like Ken said, it's not. May not be career stuff, right? I mean, you may be waiting tables, bartending, like whatever it looks like to go and earn some extra money. And then I think for you, Lucas, just from a long term perspective, be looking at what you want to do, do long term and start actually kind of building out a career that you love and you're passionate and you're good at. So you're making more like 60, 70, 80,000 a year down, you know, down the road. So that would be my two big goals for you. But if you hold in the line, we'll get you Ken's book, and then we'll also get you every dollar. This is our budgeting app, but it also will look at your entire financial picture and help walk you through how to do. How to basically do the baby steps. So you can enter in your information in that app and it really walks you through. But. But when you're looking at your debt to attack it, the debt snowball is what we recommend. And so taking those credit cards is. How many credit cards is that? 14,000.

[Caller]

So it's between two credit cards. One credit card is basically. I applied for it when I was younger, and they gave me a 14,000 credit limit, and I was like, I don't need that much. But I ended up living off of it because I was making like 10 to $12 an hour at one job, and I had to have some sort of extra income because at the time I was paying for an apartment that was fourteen hundred dollars. So I just kept putting rent on that card, and eventually I just maxed it out.

[Rachel Cruz]

It wrecked it out.

[Caller]

And then the other card. Yeah, and then the other card was like $500. And, yeah, that's kind of where that's at.

[Rachel Cruz]

Okay, so I would have a goal to get $1,000. Do you have anything saved at all? Any cash?

[Caller]

Not really.

[Rachel Cruz]

Okay. Yeah. So, yes, your first goal would be to get $1,000. We're at the end of February right now. Make it a goal by March 15th to get $1,000, whatever that looks like. You got to sell stuff, you got to work extra. And then from there, you're going to start saying, okay, with this $500 credit card, when to pay that off, and have an aggressive goal, at the end of March, mid April, that credit card's gone. And then you're going to start attacking that 14 or the other credit card with the rents, and then start attacking the student loans. So you do it by smallest to largest. But yeah, hang on the line. Christian will pick up and we'll get you all that stuff. Lucas, but excited for you in this new journey you're on.

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[Ken Coleman]

Alyssa is joining us now in Atlanta. Alyssa, how can we help?

[Caller]

Hi, good afternoon. Thank you for taking my call.

[Ken Coleman]

Sure.

[Caller]

My question to you is, should I take, Should I move out of my house, which is owned by my mom and her partner? They are not married. They have two mortgages, which is the apartment I live in, which I pay in full for every month, is $2,600. They have a home that they live in. Their mortgage is $4,300. They moved out of my apartment eight months ago to move into their home. And now she wants to leave them. And we're trying to figure out what the best, what the best move is.

[Rachel Cruz]

She wants to leave him? Is that what you said?

[Caller]

She wants to leave him. And she wants to either move into my apartment or really she wants me to move into her house, the one that they're paying for together, have him move into the apartment so no one gets, you know, quote unquote burned. But you know, that's going to be a big change in my life and I'm going to.

[Ken Coleman]

So let's pause right there. Let's just pause. Okay. And I appreciate, we're honored that you called for our opinion. And believe me, we have opinions and we'll give them to you. But before we get there, let's just, let's just go where you are. Where are you at? What was your knee jerk reaction? What is your feeling right now? What decision do you think is right for you? Tell us.

[Caller]

So my ideal situation would be to. I told them when they moved, I'm like, if I'm going to be paying everything, I'm paying the property tax, basically my own landlord. Why not just give me the gift of the home, of the apartment, which they didn't do. My immediate reaction would be have my mom move in, though. It would be, you know, a big change because I run a business out of my house, so it's going to be a little bit tough. Tighter. But my mom is very, like, pushing me to move into the house because she feels like we will be able to.

[Ken Coleman]

Pause.

[Caller]

Pause into another house.

[Ken Coleman]

Pause real quick. I'm sorry. And this is because I'm not really clear, and I don't want to confuse you or the audience. So you're saying apartment and house. You're currently living in a place, and you said your first reaction was for mom to move in with you where you are now, Correct?

[Caller]

Yes, because they just took. They just moved out of the apartment, which they own that I'm living in to move into their house. So they took on a 400,000.

[Ken Coleman]

Yeah. Not your problem.

[Rachel Cruz]

Not your problem, though.

[Ken Coleman]

That's. I don't even care about that. And the musical Houses is confusing. So you. You think the best movies for your mom to move in with you, but it comes with some headaches. That's what I heard.

[Caller]

Correct.

[Ken Coleman]

All right, so if you think that's best, we start there. And I can tell you, Rachel and I just said her house is not your problem, and mom is trying to manipulate you. My viewpoint. To move in to help her with

[Rachel Cruz]

a mortgage that she can't handle, that there's no boundaries. She's leaning on you. Almost like a second.

[Ken Coleman]

She wants to break up him, move into your place. This is wacky.

[Rachel Cruz]

Yeah. Alyssa, is your name on any of these properties from, like, a legal perspective of owning?

[Caller]

My name is not on any property.

[Rachel Cruz]

Okay. And then they're going to break up. So, Alyssa, I mean, this sounds extreme. I almost. Which would probably piss your mom off, but I almost would just move out, get out of the middle of this triangle and just go rent an apartment, be a complete bystander in this, and then be able to help and coach your mom of. Hey, Mom. Yeah. These properties. Because I bet both of their names are on. Right on. On the apartment and the home, which is going to be a mess for your mom because they're going to have to possibly refinance to get one name off the loan. I mean, it's just gonna be. It's gonna be a disaster. And so if I were you, I see disaster playing out with unhealthy mom with no boundaries. And this would be a harsh move, but it would. To say, like, hey, I have to step away. And then from your point of strength, be able. Then to come in and help where you can and where it's appropriate, but not out of this desperation of your mom because she can't get her act together.

[Ken Coleman]

Are you lost?

[Rachel Cruz]

That sounds mean. But me.

[Caller]

May I add one more thing?

[Rachel Cruz]

Absolutely.

[Caller]

I don't think give. They've been together for over a decade. So with that said, I don't think that one of them are going to go through the headache of taking each other's name off. Like they trust each other enough, although they shouldn't. They trust each other enough and they know that they're both stable enough to. Yeah.

[Rachel Cruz]

So they may not, but everybody's.

[Ken Coleman]

How does that change? Okay, great. How does it change what we're telling you that you should do?

[Caller]

No, that doesn't. That doesn't change. I just.

[Ken Coleman]

You just.

[Caller]

Michael, this year I just.

[Rachel Cruz]

I mentioned $30,000. Yeah.

[Caller]

So I'm not paying that much. I pay about 2, 600amonth in total with everything. And my goal this year is I'm like in the baby steps and my goal this year is to pay off my $30,000 in debt, which is more than possible.

[Rachel Cruz]

Yeah.

[Caller]

So I just don't know. I mean it's just going to be more difficult. But I guess.

[Ken Coleman]

Why?

[Caller]

That's why is it going to be

[Ken Coleman]

what's going to make it more difficult if you move?

[Caller]

If I move?

Why yes.

[Ken Coleman]

Give me some evidence. You may be wrong.

[Caller]

I think you can find it in my area. It's probably going to be more expensive. I am going to need a two bedroom at least in order to continue running my side business.

[Ken Coleman]

What is your side?

[Caller]

I am a waxer.

[Ken Coleman]

A waxer? Oh yeah, sorry, got that one a little late. Okay, great. But I mean why.

[Rachel Cruz]

Appreciate the service.

[Ken Coleman]

But that's great. But I mean all you need, I mean. Okay, two bedroom, that's fine. But you could get a roommate split a three bedroom. You know what I mean? You could. I would challenge you to find some. Some small studio. I would just look into it.

[Rachel Cruz]

Yeah.

[Ken Coleman]

Do you know what I mean? Like.

[Rachel Cruz]

Cause. And the reason to do all this is not really a financial move. It's more of a boundary play because.

[Ken Coleman]

Yeah. You gotta get out of this mess.

[Rachel Cruz]

There's just a relational entang.

[Ken Coleman]

Now how's more I'm gonna do?

[Rachel Cruz]

Or you either have to just have a strong boundary with your mom at some point in your life. Right. I mean it sounds like she's. You're just like the third wheel and. And you're the safety net for her when things go south and. And and that's just not a. That's not a blossoming relationship, you know what I mean?

[Ken Coleman]

From a.

[Rachel Cruz]

From a daughter to a mother. So I'm just.

[Caller]

Yes.

[Rachel Cruz]

Yeah.

[Caller]

I would add, I have gotten used

to living by myself, so I don't really want to swim with her.

[Rachel Cruz]

Yes, and you don't have to, by the way.

[Ken Coleman]

That's gon. And Mom's going to try to manipulate you. I have a good feeling that if you tell mom or you do what we're suggesting, that Mom's going to throw the darts at you. Am I right or wrong?

[Caller]

That's right.

[Sponsor/Advertiser]

Okay.

[Ken Coleman]

So are you prepared? You don't have to be on this call, but, I mean, how prepared do you think you are to be able to stand up to that?

[Caller]

I think I'm prepared.

[Ken Coleman]

Okay. I hear the emotion. Yeah. Hey. What emotion? What do you. What do you. What are you feeling?

[Sponsor/Advertiser]

Fear.

[Ken Coleman]

Sadness. What's going on?

[Caller]

Sadness to leave her on her own. But, I mean, my. I've told her a million times, you know, my goal is to pay off my debt this year, and I've been doing a great job at that. And this is just kind of gonna. It's kind of something in the middle of that, I'm going to take on a lot more expenses, a lot more stress. I'm going to be farther from work, the job that actually pays me good, and that I'm on track to make a hundred thousand a year for. So it's just. It's a lot.

[Sponsor/Advertiser]

I know.

[Ken Coleman]

Well, first of all, you're a good daughter, and there might be some thoughts that enter your head that I'm not a good daughter. Maybe your mom. I'm not saying that she will, but she might throw some statements at you that make you feel that way. And I want you to, before you leave us, to know that you're a good daughter and you are making really good decisions for you and your future, and you can't. Rachel, how many times have we taken calls with children and adult parents where you really aren't going to be able to fix. You're not Mom's stuff.

[Rachel Cruz]

And that's what Deloney says all the time is, you know, when you put the boundary up, if the other person on the other end throws a fit and decides to, you know, from an extreme standpoint, end the relationship or stopped, that's. That was their call. You didn't ask for that. You're not wanting to break a level of relationship with your mom. You're just trying to set up your own life. Alyssa, how old are you?

[Caller]

I'm 23.

[Rachel Cruz]

Oh, okay. You are young.

[Ken Coleman]

Bless you.

[Rachel Cruz]

You are young.

[Ken Coleman]

This is a great move. Oh, Alyssa, listen.

[Rachel Cruz]

This is going to be a pattern that you set for the. For the rest of your life.

[Ken Coleman]

You know, I know you're sad right now, but I would rather you experience the sadness of this necessary ending than deal with madness for years. This is setting up for that. And I don't mean just the angry feeling. I mean, like some insanity of this revolving relationship between your mom and this guy. And it's so commingled that I think the further you get away from this and set up financial and emotional boundaries, I think you're gonna be great. I'm gonna recommend a book by our dear friend, Dr. Henry Cloud. It's called Boundaries. Read it and then follow that up with Necessary Endings. That's your one. Two.

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[Ken Coleman]

may vary and no specific outcome is guaranteed. All right, let's go to Tiffany next in Phoenix, Arizona. Tiffany, how can we help you today?

[Caller]

Hi. Hi. My name is Tiffany. I own two properties that are. None of them are income producing. One I have perpetual problems with that cost me at least a thousand dollars in repairs. And the other one has been vacant for over six months and I just lost my job and I can't keep up with the payments and I don't know what to do.

[Ken Coleman]

Okay, tell us about the properties. Property 1. Let's call that one Broken. The Broken Property. What. What is it? What kind of property is it? And what do you think it's worth and what do you owe on it? Give us some numbers.

[Caller]

It's a duplex it's worth probably around 320, and I owe about 260 on it.

[Ken Coleman]

Okay, and then let's call the second property, the vacant property. Give me the numbers on that one.

[Caller]

That's a triplex. And I owe like 406. And they say it's worth 500, but I don't think it's worth that much.

[Rachel Cruz]

Who's they?

[Caller]

A real estate agent told me that it was worth 300,000, but I don't think that's true either.

[Ken Coleman]

Well, you just told us 400,000, then you changed it. I'm sorry. I'm sorry. I wrote 500,000. You said that they said it's worth 500 and you owe 406. Did I get that right?

[Caller]

That's correct.

[Ken Coleman]

Okay.

[Rachel Cruz]

Okay.

[Ken Coleman]

So why'd you throw 300 out where there's a big gap there?

[Caller]

The real estate agent that I spoke to said I need to. He told me because it wasn't selling, to drop it down to 300. But it's not worth that. It's worth more than that.

[Ken Coleman]

Okay, well, then you need to interview several real estate agents.

[Caller]

Go ahead.

That's the third real estate agent that I have tried to get to sell the property.

[Ken Coleman]

Have you tried any. The Ramsey.

[Sponsor/Advertiser]

They're not.

[Ken Coleman]

Ramsey Realty are real estate agents that are connected to us in our, in our Ramsey trusted program. Thank you. Ramsey trusted program. Have you tried any of those?

[Caller]

No.

[Ken Coleman]

Okay, go to our website in the Ramsey trusted and talk to some real estate agents. You don't, you don't have to take those three opinions at this point. You've got some urgency. So let's find somebody that really knows the market and that is really aggressive. The challenge that you've got is the duplex and the triplex. I mean, that's. Those are not, you know, your most favorable properties. And I'm guessing that you're probably in an area where real estate has slowed down. Is that true or false?

[Caller]

Well, the real estate agents I talk to say that it's good until they put it on the market. So I presume.

[Ken Coleman]

I know, but see, here's the other thing. You've got to go get your own data, right? This is not hard to find. You got to get your own research in this thing. And by the way, this is readily available, like, you know, your zip code. You can, you can go pull this information from realtor.com other reputable sources, and let's just get a knowledgeable some comps on these triplex and duplex. But you definitely need to get rid of these. But my hope is you don't. Go ahead.

[Caller]

The comp. I, I have done that. The comps that I have for the vacant home was 3, was 480. And then for the, for the broken home, the comp was, was at 320.

[Rachel Cruz]

Okay.

[Caller]

I mean, I checked on Prop Street. I've done, I've done the research.

[Ken Coleman]

Great.

[Rachel Cruz]

Okay, great.

[Ken Coleman]

Great job.

[Rachel Cruz]

And how long have they been on the market for?

[Caller]

Well, they. So the vacant home, I pulled it from the market. It was on the market for about a month or about two months.

[Rachel Cruz]

Okay.

[Caller]

But I pulled it just to see if I can get a renter because I can't keep up with these payments. And then the duplex.

[Ken Coleman]

Okay, let's look at your income really

[Caller]

quick on the market.

[Ken Coleman]

Okay, so let's.

[Caller]

I lost my job.

[Ken Coleman]

I know. So what was your income prior to losing your job?

[Caller]

About 90,000.

[Ken Coleman]

What were you doing?

[Caller]

Work in marketing.

[Ken Coleman]

Okay, so what happened? Laid off? Fired. What happened?

[Caller]

No, I got, I got fired for burnout and stressed out.

[Ken Coleman]

And what was causing you stress?

[Caller]

My mortgages.

[Ken Coleman]

Right. Okay. I think this is a. Both.

[Caller]

I've had, I've had evictions. I had three evictions last year. I still have one.

[Rachel Cruz]

As being a land, you might like you having to do it as a landlord. Yes, yeah, yeah, totally.

[Caller]

That you turnover.

[Rachel Cruz]

So how much is the, how much is each payment per month?

[Caller]

My duplex is 2600 and the triplex is 3400.

[Rachel Cruz]

Okay. So yeah, that's six grand just in those payments. How far behind are you?

[Caller]

I'm not behind.

[Rachel Cruz]

You're not behind. Okay, that's good. So Tiffany, right now, average days on market, and this is across the US not in the Phoenix area specifically is about 78 days. Okay. And we're about to go into a season of, of real estate. Right. Everything kind of starts opening up after the winter. And your, your May, your April, all of these months really start generating people that are looking to buy. Now this looks like, I mean, I'm assuming you wouldn't be able to sell like the duplex and the triplex as separate units. It has to be all probably within one unit. So are you looking for like an investor? Would an investor be the type of buyer? Because it wouldn't be a single family, like it's not a single family home, right?

[Caller]

No, yeah, that's correct. If not.

[Rachel Cruz]

Okay, so that, that is going to make it more difficult because it's more of a niche buyer that you're looking for. But average day, so I would give yourself 90 days to 120. Like it may have to go through the summer. But the problem is, is if you start getting behind, then. Yeah, I mean, short, A short sale may have to come into play. If you can't get these off.

[Ken Coleman]

Well, that's why we need to look at the money right now. So the income. Are you on a severance right now? How long have you been out of work?

[Caller]

I just found out this week. I have a month severance.

[Ken Coleman]

You have a month severance. Okay. And if. Let me, let me go back. And this is somewhat of an unfair question, but I think it's important. If, if we had 30 days ago, sold those tribe, those two, let's call these properties. Okay. If we had sold those properties, do you think you would have gotten fired?

[Caller]

Probably.

[Ken Coleman]

You do think you still would be.

[Caller]

This has been going on for the. This has been going on for about two years.

[Ken Coleman]

Okay. And so the stress. And I want you to be really honest because again, we're protecting you here, but we need to be gut level honest. Is that the single source of. You just simply. You couldn't get the job done. You were almost a zombie because you were so stressed out. Is that what I'm understanding?

[Caller]

Yes.

[Ken Coleman]

Okay. So I want to go back then. Had we not had the stress of these properties, do you think you would have been in a state that would have led to you getting fired? Yes or no.

[Caller]

Right. Repeat that again.

[Ken Coleman]

Okay. If these properties didn't exist in your portfolio and you didn't have any of this stress, do you think you would have gotten fired? Let's go all the way back. For two years this has been going on. Would you have gotten fired?

[Caller]

No.

[Ken Coleman]

Okay. My point is you aren't broken, but you are burdened and that's what's going on. So we got to remove these two burdens. And let me tell you what I do. We have short time here, but I'm going to tell you two things I think you got to do. Number one, I think you need to go get a really aggressive real estate agent. Keep finding. But I would not rely on them. I would. Is there anybody that. Are there other duplexes and triplexes around these properties? They're not single standouts, right?

[Caller]

No, that's correct.

There are other ones in the.

[Ken Coleman]

I would be knocking on doors and finding who owns them and say, I'm willing to make a deal.

[Rachel Cruz]

Yes.

[Ken Coleman]

And the deal is up to the point that you don't have to pay anything, but you can get out of these things. I don't even care if you profit $1, but as long as you don't owe anything on these things anymore and we remove these from your life, it's like taking a giant millstone that's been hanging around your neck and you've been out there treading water and that is going to lift from you immediately. That would be step one. So I would take it on myself to go cut a deal. Hey, I got these properties. I screwed up. I'm stressed out. This is the bottom dollar that I'll take, but I'll take it today. And I would go. Try to do the deal on your own while trying to get an agent. Now we've got to move to income. You are going to get free of these things. So you have to summon up every ounce of energy and strength that you have and you have got to get back on the horse. You've got to maybe go back to your current employer and say, I'm going to fix this. I would take that stab. Give me one more shot. Maybe you don't have it. And I understand that may be unrealistic, but I'd put everything on the table. And you've got to get out there if you're working from home, whatever it is. But 90,000 is not going to be replaced by some odd jobs. You're going to have to go back and get into marketing and get in as quick as you can, or you're looking at four to five jobs. That's your reality right now because you got one month before your world gets really, really bad. So I hate that you're in this. But here's the good news. I believe in you. You can get out of this. But this is going to have to be like, like everything. You got to not get broken by this.

[Sponsor/Advertiser]

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[Ken Coleman]

Well, I used to be one of those guys. I didn't even think about it. And one of my buddies said, hey, the only reason to not have life insurance is if you hate your wife and kids. And I immediately went and got term life insurance.

[Sponsor/Advertiser]

That's a gut punch.

[Ken Coleman]

And. Oh, you're telling me. And for, for decades, Dave, I've sat across people who've lost a spouse, they've lost somebody important to them.

[Sponsor/Advertiser]

Me too.

[Ken Coleman]

They don't know what to do next.

[Sponsor/Advertiser]

Me too. I mean, you're going to have a crisis here and you know, you got two options. While you're sitting and talking to a young widow, she's concerned about how she's going to invest all this money properly and not mess this up, or she's concerned how she's going to eat tomorrow.

[Ken Coleman]

That's exactly.

[Sponsor/Advertiser]

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[Ken Coleman]

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[Sponsor/Advertiser]

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[Ken Coleman]

Hey, if you're sick and tired of working so hard but having nothing to show for it, don't get too down. It's normal. But normal is broke. Our every dollar budget at App is going to help you find extra money every month and it's going to build you a personalized plan to beat the debt so you can build wealth in just 15 minutes. You're going to find thousands in margin that's hidden from you. So go start everydollar and you can do it for free in the App store or Google Play. All right. Eric is up in Dayton, Ohio. Eric, how can we help?

[Caller]

Hey, guys. How are you guys today?

[Ken Coleman]

Great. How are you, sir?

[Caller]

Good, good. Hey, I looking for some advice on how to convince my wife that it's a smart idea to sell one vehicle that we have paid off that's worth about $32,000 to pay off the other that we have and not have any car payment.

[Ken Coleman]

And your wife is not on board with this.

[Caller]

She's not. So trying to sell her car. It is her car. My car is paid for. 2020 Silverado.

[Rachel Cruz]

Yeah.

[Caller]

Yeah.

[Rachel Cruz]

That's a hard uphill battle.

[Caller]

It is. So it's paid for.

[Ken Coleman]

Yours is a truck. And what does she drive?

[Caller]

Yes, she drives a Durango.

[Ken Coleman]

And you want to sell her. I thought you said you wanted to sell your truck.

[Caller]

Yes, I want to sell my truck and pay off her Durango.

[Ken Coleman]

And that's why I'm confused as to why she's not for this.

[Rachel Cruz]

Oh, I thought you were trying to sell her car.

[Caller]

Well, well, she, she, she thinks basically the difference of what my truck is worth compared to us paying her car off is about 8,800 to $10,000. So she's afraid. My. What I would like to do is take that $10,000 and go buy. Pay cash for a used car. She is just afraid of what comes with the maintenance and upkeep of buying a. What's her vehicle.

[Ken Coleman]

Got it. Okay. Now I'm up to date. Okay, so this casting, Eric, right, you got to cast a vision, and you got to do it in a way where she goes, aha. Because she's got some fear. Okay. And who among us, Eric, are really clear thinking when we're afraid? Yes. You would agree.

[Caller]

Yes.

[Ken Coleman]

Okay. So nothing wrong with your wife. She's got some fear, and it's clouding her ability to see your plan. So you have to come at it that way. All right, so this is the way I would come about it. What is the payment on her Durango every month?

[Caller]

Well, we're paying just shy of double payments on her Durango now. So she. Her insight is, well, why do we need to make this drastic decision if

[Rachel Cruz]

we can just pay it off?

[Caller]

You want to pay for it?

[Rachel Cruz]

Yeah.

[Ken Coleman]

Maybe she's right. But you got to answer my question. I'm going to walk you through it. Maybe she's right. So what are you guys paying? I know it's a double payment. What are you guys paying every month on The Durango?

[Caller]

It's 550.

[Ken Coleman]

Okay. 550 bucks a month. All right. And if we continue to do the 550 double payment, when would the Durango be paid off?

[Caller]

In about two. Two. Just over two years.

[Rachel Cruz]

Oh, okay.

[Ken Coleman]

That's. That's an. That's more information. The way I would come about it is. What. What are you thinking? Because you. You made a funny, scrunchy face, and I really want to go to you. I want to go to you immediately.

[Rachel Cruz]

No, no.

[Ken Coleman]

What do you think?

[Rachel Cruz]

It's not off the top of my head. It's just that is. That's so long.

[Ken Coleman]

That's too long to be.

[Rachel Cruz]

Yes.

[Ken Coleman]

Keeping. All right. I just wanted to make sure.

[Rachel Cruz]

Cast the vision.

[Ken Coleman]

So here's what I would do. I would say, babe, we're paying 550 bucks a month, and at that rate, it's going to take us two years to pay this off. Okay. All right. So you do the math on that and just play it out. Show her the numbers. So that's 24 months at 550amonth. Multiply that a thousand.

[Rachel Cruz]

Because he said double payments still haven't paid off in two years.

[Caller]

No, the Yes.

[Ken Coleman]

I thought the double. Okay, hold on. The double payment I thought was 550. No, no, no.

[Rachel Cruz]

That's. That's the single payment.

[Caller]

That's the single payment I think you asked for.

[Ken Coleman]

He didn't give it to me. I said, what's the double payment? You said 550. Eric.

[Rachel Cruz]

I'm following you.

[Ken Coleman]

Eric, give me the numbers. So it's a th. Actually, yeah.

[Rachel Cruz]

They're putting away about, actually, $1,100.

[Caller]

We're actually paying $975 a month.

[Ken Coleman]

But in all fairness, I did ask for that number. I said, what are you paying?

[Caller]

It's okay, Eric.

[Rachel Cruz]

I was kid asked, how much is the payment? She gave the payment.

[Ken Coleman]

You said, double, and I said, what's the double payment? Here's the deal anyway.

[Rachel Cruz]

A thousand bucks.

[Ken Coleman]

It's a thousand bucks for two years. For two years. You got to show her those numbers versus your plan, which I did.

[Caller]

Well, I actually made a spreadsheet.

[Rachel Cruz]

Oh, look at you, Eric.

[Ken Coleman]

But what do you.

[Caller]

Spreadsheet.

[Ken Coleman]

Okay.

[Caller]

My anticipation was to have it. We would pay this car off right now.

[Rachel Cruz]

So let's just get to her fear. Her fear is.

[Ken Coleman]

But I'm gonna address it. Here's the deal. I'm trying so hard to get here. You got to show her that the thousand bucks a month that we're paying is easily going to cover any kind of mechanical issues she's worried about. Oh, I know. Kids. Not a village idiot after all.

[Rachel Cruz]

I got you like I'm talking to

[Ken Coleman]

my teenagers between you two. Oh, Ken. I mean, the vision casting is you're afraid to be fine, that we're going to have mechanical problems. So then you tell her, I'm going to buy for 10,000 a Toyota or a Honda or something, or X amount of miles. And I can do research and show her that the average mechanical cost on a car like this is whatever.

[Rachel Cruz]

Yes.

[Ken Coleman]

And between our emergency fund and the savings of almost a thousand bucks a month, we would be able to cover the mechanical. And now we're out of debt.

[Rachel Cruz]

Eric, that's what you have to do. Have you. Have you shown her any used cars for $10,000?

[Caller]

I haven't really.

[Rachel Cruz]

Okay.

[Caller]

I've seen a couple that are locally, like. It was like eight, eight hundred dollars, like a toy or a Camry.

[Ken Coleman]

Yeah.

[Rachel Cruz]

So I think that's. I think that's always a shocking thing for people. People hear used cars, and if I'm her and she's just like, that just means it's a beater. It's gonna be Crappy. We're gonna have to deal with maintenance all the time. You know what I mean? Like, that's kind of the stereotype. But when you actually go and look at used cars, they're fine. Really. I mean, there's some. There's some that are rough, that you're like, okay, that's probably not gonna be great. But you go get a mechanic to look at it. You make sure there's no big issues going on. And I'm telling you, yes. And I. And I think for her, that's where the Ken's vision casting can come in, is her actually go car shopping and see what you. What you're talking about. Oh, look at this. Ken's pulling it up now.

[Ken Coleman]

That's what I do. It's what I do, folks.

[Rachel Cruz]

Look at you, ken. Look at GMC Acadia for a 2016.

[Ken Coleman]

GMC Acadia for 8,900. Only 120,000 miles. GMCs aren't expensive to fix. They got all the parts. Let me give you. There's a. Oh, my gosh. How about a 2015 Subaru? These things run forever. And let's do one more just for fun. Oh, here we go. Let's go. The 2016 Honda Honda Civic. 182, 000 miles. Yes. But that car's barely getting started. It looks great. The paint's nice. They're asking 8, 900 for it. You walk in there with 7, $500 in a hundred dollar bills and you walk out of that.

[Rachel Cruz]

Yep.

[Ken Coleman]

That's just a quick, quick search. So again, I know it took us a while.

[Rachel Cruz]

She needs to be a long, painful.

[Ken Coleman]

But we got to show her. No more spreadsheets. Just here's the deal. We just free up $1,000 a month in our budget. We can easily cover. And this is for a short term. And we save up. Rachel.

[Rachel Cruz]

Yes.

[Ken Coleman]

For the next $20,000 cash car.

[Rachel Cruz]

Mm.

[Caller]

I even tried to show her that taking this. What? What? A payment of 557 plus what we're paying and putting it to the house after this. This car is paid for. We would pay. We would then pay our house off in within the next five years after that.

[Rachel Cruz]

Oh, my gosh.

[Ken Coleman]

And she didn't go for that.

[Rachel Cruz]

So it's really her fear, Eric, is her real fear just a used car? Is that what she is scared of? For real?

[Caller]

Just keeping up the maintenance? She doesn't think we're. She asked me, she said, do we. Do you really think we're in that bad of shape? We're not at all in that bad shape?

[Rachel Cruz]

No, but it's just the level of intensity. You want out?

[Caller]

Yeah.

[Ken Coleman]

Let me ask you a crazy question.

[Rachel Cruz]

That's how I would go about it, though, Eric, of what it's doing to you. It's stressing you out. You hate this. And so to her, she may not feel the pain as much. She's like, is it really that big of a deal? My gosh, Eric, you're being so dramatic. All of this, you need to. Yeah, you need to verbalize exactly what you're feeling and what you're thinking. And it's almost this. Like, hey, this would be a gift to me and my sanity and my peace. Like, you know what I mean? It's more of that for you. Because she's not rattled by this, which is fair. She can pay.

[Caller]

She does none of our finances.

[Rachel Cruz]

So then that's part of the problem.

[Ken Coleman]

Crazy question, actually. Eric, this is for you and Rachel.

[Rachel Cruz]

Okay, so I got Eric Apparelly. It's you and I against.

[Ken Coleman]

Well, it sounded like it earlier, until America realized where I was going. All right, serious question in this case. Is it okay for your marriage to just do it? I don't think you're going and buying anything. You're selling your car. I think you go, we're at an impasse. But, babe, I'm going to do it anyway. What? Sake you. Oh, does that bother you?

[Caller]

That's a. That's a. Yeah, that's a terrible idea. And I would not do that. She would. She would kill me.

[Rachel Cruz]

She'd freak out.

[Ken Coleman]

Okay, then don't do it.

[Rachel Cruz]

Okay, listen, she's got to come to the table. You guys need to be doing a budget together every month like y' all are. You're running on two separate tracks. And. And you're by yourself in this. You're isolated and stressed, and that's the core issue here for you. And that's what she needs to hear. Last thing is that her husband is not at peace.

[Ken Coleman]

Take her to seal a $10,000 car. Take her to see it, test drive, take her along. I think that's your shot. You've worked too hard to get control of your money just to let strangers control your data. Think about it. Just about every time you sign up for a newsletter, grab a coupon code, or start a free trial, your personal info, like your name, email address, phone number, and more, gets scooped up and sold by data brokers. Here's the deal. Freedom isn't only being debt free. It's also being free from companies cashing in on your data. And that's where delete me comes in. Deleteme's privacy experts find your personal info on these shady data broker sites. They get it deleted and they keep it gone. It's like having a digital cleanup crew that scrubs your online life so you get way fewer of those spam calls, creepy texts, and scam emails that make you wonder how they even found you guys. The less noise in your digital life, the more time you have for what actually matters. Because when you protect your privacy, you protect your peace and your freedom. So go to JoinDeleteMe.com Ramsey to get 20% off their annual plans and take back control. That's JoinDeleteMe.com Ramsey. Welcome back to the Ramsey show and the Fair Wind credit union studio. I'm Ken Coleman alongside Rachel Cruz. Excited to be with you all. 888. 825. 5225 is the number. Nate is up in Colorado. Nate, how can we help?

[Caller]

Hey, guys. I'm just calling because I'm not really sure how to move forward. Had a very serious health situation and depleted all of our savings and I'm not sure how to move. I've got four kids and a wife. I'm not trying to move forward.

[Rachel Cruz]

Oh, my gosh. What happened?

[Caller]

Getting out of debt and everything. Long story short, I was in the army for a long time and doctors were trying to help me recover from long, long term injuries. And too many doctors got involved and ended up on 19 different medications for multiple years.

[Rachel Cruz]

Oh, my gosh.

[Caller]

And it was just killing my liver. I had heart attacks and it was really bad. And technically, I'm not even supposed to be here. We were literally planning my funeral.

[Rachel Cruz]

Oh, my gosh.

[Caller]

And now I'm here and I don't know what to do.

[Rachel Cruz]

Yeah, well, what.

[Ken Coleman]

When we say here, where does that put you physically? Are you able to work? Are you on disability? We got to walk through kind of your reality. So let's start with those two questions.

[Caller]

So I worked through the, you know, I was supposed to be in the hospital, but I worked through it all.

[Sponsor/Advertiser]

Wow.

[Caller]

Through God's help, I was able to maintain myself enough to work.

[Ken Coleman]

Do you still have. Do you still have that income?

[Caller]

Yes, sir, I still work. I make just over $100,000 a year.

[Ken Coleman]

Okay, great.

[Rachel Cruz]

And you.

[Ken Coleman]

And you foresee, God willing, health allowing, continuing to make that money, correct?

[Caller]

Yes, sir. The damage is permanent. There's no fixing it. You can prevent further damage, but what's done is done, basically.

[Ken Coleman]

Do you have any Other income that's coming in from your military service or anything like.

[Caller]

That's part of the income? Yes, that's part of the total income I gave you.

[Ken Coleman]

Okay, gotcha. Okay, is there one last question here? And we'll start walking through the debt. Do you have opportunities where you are, or potentially in the same industry to get a raise to where that number goes above 100,000?

[Caller]

I believe so. I mean, technically, yes. That depends a lot on the company you work for.

[Ken Coleman]

I understand. But the reason I'm asking that needs to be a part of this strategy. In other words, you don't have to answer that question on the call, but your homework assignment is, what can I do to increase my income? Yes, sir.

[Caller]

I'm going to school, currently full time and working full time.

[Ken Coleman]

For what?

[Caller]

To try to finish my degree so that I can get out of trucking and do accounting.

[Ken Coleman]

Okay. Okay. So you want to move into accounting. How much school left do you have?

[Caller]

I will graduate next May. Not this May, but next year. It's 2027 May.

[Ken Coleman]

All right. How much is that costing you, or is it covered?

[Caller]

It's free from the va. I get. In fact, I actually get paid to go to school.

[Ken Coleman]

Perfect. Okay, great. All right, I want to bring Rachel in here, and let's talk about the real debt.

[Rachel Cruz]

Yeah. So how much debt do you guys have?

[Caller]

So my wife is two months away from being debt free. We have two credit cards left that total. One credit card is $9,487, and the other credit card is $4,619.

[Rachel Cruz]

Okay.

[Caller]

And actually, tomorrow morning, that credit card will. The smaller one will be paid off

[Rachel Cruz]

the 4,000 and then.

[Caller]

Yes, ma'. Am.

[Rachel Cruz]

Oh, my gosh. Amazing.

[Caller]

And then April 1st. I'm sorry, between April 1st and May 1st, we will finish off the 9,000.

[Rachel Cruz]

Okay. Amazing. Now, why did you say my wife is almost debt free? What do you mean by that?

[Caller]

That? Well, when I got sick, I was actually running my own trucking company. Okay, I'm sorry.

[Rachel Cruz]

Now you're fine.

[Caller]

I was doing really well.

[Rachel Cruz]

Yeah.

[Caller]

And. To keep our family afloat, I. I just kind of went into survival mode, and I just said, okay, well, if I die, I don't want my wife's credit to get destroyed. So I just focused on making sure the rent was paid and her bills got paid. But my credit, obviously, I couldn't make anything. I mean, we were okay.

[Rachel Cruz]

Yep.

[Caller]

Barely living.

[Rachel Cruz]

Okay, I hear you.

[Caller]

And so I was able to salvage hers, but my credit is just destroyed.

[Rachel Cruz]

Okay, that's okay. Yeah, we're not. I'm not worried about that right now. So is the. Are the two credit cards, are those under her name or yours?

[Caller]

Yes, ma', am. They're under her name.

[Rachel Cruz]

They're hers. Okay, so is that all the debt that's in her name?

[Caller]

Yes, ma'.

[Ken Coleman]

Am.

[Rachel Cruz]

That's wonderful. And then what debt do you have?

[Caller]

I. It's not an overwhelming amount. It's just a lot of small credit cards that have been in default for like two years.

[Rachel Cruz]

That's great. Are they in collections?

[Caller]

Yes, yes. Yes, ma', am, I'm sure they are. I just. Nobody's contacted me about it. That was weird.

[Rachel Cruz]

Okay, so what?

[Caller]

I like getting phone calls. Calls. It's just.

[Rachel Cruz]

Yep. Okay. So in a way, it's kind of a good thing because when they hit collections, you can negotiate and, you know, get out of them. So, so total, you said it's a bunch of little ones, so probably a total of what, five grand, ten grand, or what are we talking?

[Caller]

It's just under 14,000 right now. It sits at 13,913.

[Rachel Cruz]

Okay. And they're all defaulted and probably all in collections. All 14,000?

[Caller]

Yes, ma', am. Every single one.

[Rachel Cruz]

Okay, so. So here's what I would do. I would pull your credit report and see the last company that held that debt and try to contact them and try to real time of. Of what. Who owns these debts, because they're probably even sold off. So it'll. It's kind of like a. It's going to be a part time job for you to kind of like go through the spider web of it all, but where you can get that. And then in the meantime, after you guys pay off her there, I'm gonna say. I'm gonna say your. Both of you, because we'll. We'll talk in the. In those terms. Once. Once the $9,000 credit card is paid off in April, then I would save, because you guys are amazing at what you're doing. The fact you guys are snowballing this so far, fast. I would save, you know, five, six thousand as quickly as possible. And then contact the collections and see what you can negotiate, because I bet they'll take half or even less than half of that. 15,000. Okay, so I want you guys to do that. So once that's taken care of, is there any more debt?

[Caller]

No, ma'.

Am.

[Rachel Cruz]

No. Okay. Yeah. Nate, can I just tell you?

[Caller]

Overwhelming. It was just terrifying trying to think,

[Rachel Cruz]

oh, I can't imagine trying to stay alive.

[Ken Coleman]

By the way, you're a hero.

[Caller]

I'm having a hard time.

Time?

[Ken Coleman]

Yeah.

[Caller]

I'm having a hard time finding life insurance.

[Rachel Cruz]

Yeah, yeah.

[Caller]

You.

[Rachel Cruz]

Yeah, you might.

[Caller]

I've got like $100,000 policy. You just had a baby girl. That was not planned. Yeah, it's just. I'm just.

[Ken Coleman]

You're a good man. Hey, you're a good man.

[Caller]

Really hard to take care of my family.

[Ken Coleman]

You're doing.

[Rachel Cruz]

Listen, you're doing a great job.

[Ken Coleman]

You're doing so well. The fact that you guys are going to pay this debt off in the next two months and Rachel just gave you a step by step plan. Don't stress about that collection stuff. That is secondary. You're going to be okay. You just keep showing up for your family the way you have. You're a good man who's been through so much by the way. You served our country and you sacrificed so much. You are a great American too, and we appreciate you. You're going to be fine. You're doing a great job. Job, you guys. The next step is get that emergency fund in place right? And then begin the investing. And I believe it's all going to work out. You just one day at a time.

[Rachel Cruz]

Hold on the line. Nate, we're going to pick up during the break because I do want to mention something about when you mentioned life insurance. I do want to talk to you about that. We can talk off air. So hang on, hang on. But yeah, do an incredible. Nate,

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[Ken Coleman]

Brian is up in Denver, Colorado. Brian, how can we Help.

[Caller]

Hey, nice to be with you both.

[Ken Coleman]

Thank you. What's going on?

[Sponsor/Advertiser]

On.

[Caller]

So my grandfather passed away.

[Ken Coleman]

Oh, I'm so sorry about that.

[Caller]

Yeah. Hey, 96 years old. He crashed.

[Ken Coleman]

Oh, that's a. That's a great life.

[Caller]

Yeah. Yeah, He. He did a lot in his life, and I inherited some stuff from him that I wanted to talk to you about. Okay. Including a giant Alaskan salmon that he caught in 1986 that somehow got left in the will for me. So I'm trying to figure out what to do with that.

[Rachel Cruz]

Like, on a wall calling you, like, on the wall?

[Ken Coleman]

Or like, can I just tell you,

[Rachel Cruz]

Is it still in the freezer?

[Caller]

So it came with a plaque, and he named the salmon Big Hog. And now I have my grandfather's big Hog. And I don't know what this.

[Rachel Cruz]

Right now.

[Ken Coleman]

I'm so excited. Let's go ahead and get this one out of the way. This is the least important of the question, but we'll. What do you do with it? You hang it in a place of honor. This is your grandfather's prize fish. He went so far as to name it. I would think patio. Covered patio would be a pot. If you've got a man. Kind of a man's room in the house. Great spot. I mean, it's a story to tell, and it honors your grandfather every time you tell the story. And I would come up with a good story. If you don't have a. Embellish a

[Rachel Cruz]

little bit to make it even better.

[Caller]

Listen, I. I whipped out the tape measure and found a perfectly suitable place in the living room. My wife, not the living room. Reasons I'll never understand. Hated the idea.

[Ken Coleman]

Well, you haven't been married long enough. I have. I get it. Notice I didn't mention the living room. That wasn't on my. I know better than that. Whatever your man land is in your house, that's where it goes. Great story. And as Rachel said, create a good fish story. Like, he almost lost his arm or something. Like, let's get some drama in it. And then he was okay, and he got the fish, reeled it in. Took him an hour and a half. I don't know. Something special.

[Rachel Cruz]

Sounds good story.

[Caller]

But anyway, this is the type of advice people need to call into their Ramsey show for.

[Rachel Cruz]

I agree. We can do more than just money.

[Ken Coleman]

By the way, I got more where that came from.

[Rachel Cruz]

We changed lives in so many ways.

[Ken Coleman]

All right, so now some serious stuff.

[Rachel Cruz]

How can we help you?

[Caller]

You? Yes. So I found out through his passing. And I'll Say this once, very grateful, very blessed to be in the situation that through the course of three different kind of life events in the future, I'll be inheriting a total essentially of 3.5 million from him.

[Ken Coleman]

Wow. Yes.

[Rachel Cruz]

How many grandkids are there?

[Caller]

There's four of us. And it's interesting that you asked that question because one of them is through $10 million generation skipping trust that some of his commercial real estate assets is in totaling about 10 million.

[Rachel Cruz]

So generation skipping your parents didn't get.

[Caller]

Correct. My parents now get all of the income for as long as they're alive from those properties.

[Rachel Cruz]

Okay.

[Caller]

But they're passed along to us ownership wise in the trust once his children have passed along. So that's way down the line.

[Sponsor/Advertiser]

Wow.

[Rachel Cruz]

Okay. Oh, my gosh.

[Caller]

So the other element is that he's leaving me a hundred thousand dollars. Now, I will receive at some point within two years of his passing, which will be two maze from now. So I don't know when that would be coming. It could come today, it could come in a year and four months. And then the other element of it is that when my grandmother passes his wife, I'll be receiving a $1 million municipal bond that pays out a lousy 2%. But I'll be getting that when my grandmother dies, that they worked out through their estate that she gets once he passed, and then I'll get that when she passed. She's 90, and I hope she lives 30 more years. But that's the. That's the third element of it. So the reason I'm calling you is I didn't anticipate any of this. And since 2020, I've been building up my own brokerage account with stocks and ETFs, and that account now has 155,000 in it. And my plan was to never touch it, ever, Just keep it growing. However, now that I kind of have these other things coming in the future, my question for you is, is it okay or is it still stupid to be able to pull out money from that brokerage account to pay for some home improvement projects that straddle the line between want and need? If we have a second kid down the line in a couple years, we could really use another bedroom. And so for me, and we're doing home construction work here coming up soon, so it would be ideal to get it all done in one slew while it's happening, as opposed to having to move out a couple times. So is it okay for me to pull 40, 50 out of that now, pay another 10k in capital gains taxes next year, given I know what's coming to me. Or is that still no?

[Rachel Cruz]

I think that's fine. I would say you could do. You could pull 40 or 50 out of 150 in a brokerage account anyways, regardless of the inheritance. I mean, that's. That's cash for you all to use now or later. Or like you said, never touch it. I mean, yeah, you. You get to make that decision. The whole idea of just never touching that account was something that you. That was a role you put on that money. No one, you know, forced that. So I would say I would.

[Caller]

Would.

[Rachel Cruz]

I would be a little bit more flexible with it. And I'm assuming you guys don't have any debt and have an emergency fund in place and everything, correct?

[Caller]

Yeah, about $40,000. Emergency fund. The only debt is our mortgage. 4,000amonth, $500,000 left on the way.

[Ken Coleman]

What kind of retirement savings do you have at this point? I know you're a young man, but I'm just curious what your 15% is looking like in Babysit 4.

[Caller]

Yeah, it's, it's, it's. It's. I don't know, normal. I'm 36 years old. I worked professionally for the first half of my professional life, not making much money, so there wasn't much there.

[Ken Coleman]

Sure.

[Caller]

But over the past five years, I've had a pretty good job and have been contributing 4% to it for the last five years.

[Rachel Cruz]

Okay, that's great. Yeah. So I would. Are you just doing 4%? Is that the match?

[Caller]

Yes.

[Rachel Cruz]

Okay. Yeah. So I would. I would be investing 15%, so I would be upping your retirement. I would totally use some of this money in this account, and then that will be replenished with 100 grand cash that's coming to you in the next year. Now, the, the rest, the bond, I'd understand that, but the, the other big chunk, the 2.5, that's in. That is in real estate, correct? That's not.

[Caller]

Yes. So that's. That's the current valuation of what is commercial real estate properties in Los Angeles.

[Sponsor/Advertiser]

Perfect.

[Rachel Cruz]

Okay. One. Wonderful. So. Yep, that's. That's exactly what I would do, Brian. I know. That's what a. What a beautiful legacy that your grandfather just love that guy built up, passed down generationally, and still has grandkids intact. Right. Like, Brian, like, you know, you've stayed out of debt and built up your own emergency fund, your own brokerage, like you're. You're doing it, and then that's the beautiful thing is that what money magnifies and when money magnifies, guys, great habits and stewarding money. Well, like, that's a. That's a wonderful thing. This money's not going to ruin you. It's actually going to continue. You're going to pass that down generationally through your kids and so on. So. Wow, that's amazing. Absolutely amazing. So, yeah, I would use part of the 150 to cash flow, some home renovations, and it's okay if it's a want, that's totally fine. You guys have the cash for it. You're in a position to do it. And then when that $1 million bond comes, when your grandmother does pass. Yes, I would probably, yeah, cash that out and invest that and that $1 million sitting in a brokerage account long term is going to be a beautiful thing, too. That's in the future, which is awesome.

[Ken Coleman]

That's huge. And that's going to fast forward your retirement savings. And obviously you continue to be as smart as you've been.

[Rachel Cruz]

Yeah, don't slow down your stuff.

[Ken Coleman]

You guys are in great shape. But act like none of it's coming is the idea here. And you got a big decision to make. We got to find out where we're going to put that salmon. I think America wants to know, by the way, how big of a fish is. Did you measure it?

[Caller]

Yeah, well, the, the weight. Thank you. First of all, thank you for all that. I appreciate it. The weight of big hog is listed on the plaque. I don't know much about salmon. I asked my friend who's a big salmon fisherman. He told me if it's £25, that's a huge salmon. The weight of this salmon says 73 pounds. It's huge.

[Ken Coleman]

Oh, and what's the size? What is it end to end? Do you have any to you?

[Caller]

Oh, gosh, I haven't measured it.

[Ken Coleman]

What would you guess?

[Caller]

Big enough to struggle to get through the door frame, I can tell you that.

[Ken Coleman]

Oh, so. So basically a yardstick. At least a yardstick wide, if you know what a yard. Yeah, okay.

[Caller]

Yes.

[Ken Coleman]

Holy smokes.

[Rachel Cruz]

Kids more excited about that fish when

[Caller]

you walked in the house?

[Ken Coleman]

Well, you know, listen, I've heard people talk about millions all the time. When's the last time you heard anybody talk about a 70 pound plus salmon? That's pretty special.

[Rachel Cruz]

Yeah. Not like a tuna. A salmon.

[Ken Coleman]

A salmon.

[Rachel Cruz]

And. And they're not salt water. Right. Salmon or fresh water. So that's in a river somewhere in Alaska that can eat meat.

[Ken Coleman]

Where did he catch it? Tell us real quick, where did he catch it?

[Caller]

Yep. Alaska.

[Ken Coleman]

Oh, there it is. Unbelievable. You know, and what's funny is there was a giant bear that had been stalking that thing. Big hog bear came looking for him. He's no longer there. Where is he? Grandpa got. Got him. If you're waking up tired every morning, you don't need more caffeine. You need better rest. And that's why Casper mattresses are engineered to help you sleep deeper and wake up refreshed. And this isn't just one George's opinion opinion. Thousands of five star reviews prove it. Plus Casper mattresses ship free and come with a hundred night trial. So you've got nothing to lose. Sleep is a must and you deserve the best. So go to Casper.com Ramsey and use promo code Ramsey for 25% off mattresses and 10% off everything else. That gives you up to 1200 bucks off the Snowmax mattress, which is the exact one I sleep on every night. That's Casper.com Ramsay Ramsey code Ramsey exclusions apply. Columbus. Oh, I'm sorry. Couldn't hear myself. In my ears, everybody. I'm not having a, you know, attack of some kind. The cord got pulled out. I was like, yeah, I can't hear myself. The wire shorting out. That's what's happening. So that's. Let me see if I can manually adjust that. Okay, there we go, folks. All right, it's live folks. You gotta keep pressing through. Joseph is up in Columbus, Georgia and I can hear myself and hopefully I can hear you, Joseph. How's it going?

[Caller]

All is well here in Columbus. Just had a couple of questions for you.

[Ken Coleman]

Okay, go for it.

[Caller]

Thanks for taking my call. Sure. Yes, I am married, 67. My wife is 68 and we both are retired and we both enjoy traveling. Her a lot more than me.

[Ken Coleman]

But

[Caller]

we got a question about getting a credit card for using those lounges. The lounge and all those things. The Centurion Lounge.

[Ken Coleman]

Yeah.

[Caller]

Yeah, I got a question about getting a credit card for those purposes.

[Ken Coleman]

You don't want to sit among the people. You want that private experience, huh?

[Caller]

Well, I. At first my wife wanted it, but then when I experienced it, I thought it was pretty good as well. And so, yeah, I don't, I don't carry any credit card debt, but I wondered. I know I did the Dave Ramsey program back in 2011 and she did it a year before me and we both have been debt free since that time and just wanted to get your opinion on what do you think that's a wise idea to try to get a credit card for that purpose.

[Rachel Cruz]

Yeah. So the way I would look at it is, you know, choosing to do that on one hand, you know, some people, it's like, it's just not a big deal. You pay it off every month. You get the, the privilege of being in the airport lounges and whatever. And then on the other end of the spectrum, it is kind of saying, hey, I'm going to shift my philosophy around how I do money and I'm going to choose now to spend on a card that I'm going to have to pay off every month. And what we have found, data wise, is that you do end up spending more when you spend with a credit card. And so there is something to be said of, hey, I'm going to shift my financial philosophy for an hour once a month in a lounge. And so to me, not worth it. They're nice. I've been in them before with friends and yeah, they're fine, but they're also just fine. You know, I could sit at a airport restaurant and get a glass of wine and a dinner and call it a day, you know.

[Ken Coleman]

You know, you are a woman of the people. You like to be out there among the folks.

[Rachel Cruz]

No, but I. Yeah. So to me, Joseph, it's, it is shifting into an industry that I, I just have a lot of disgust for. I just don't like the credit card industry. I don't like playing their game. I don't like the fact that a lot of miles and cash back and everything, the way they make their money is off of people who can't pay their bills and end up, you know, having to pay interest and all of it. It's just a. I just don't like the game and so I choose not to play it.

[Ken Coleman]

Honest question, Joseph, because it's. It's been a while since I've done any of the lounges. Right. I don't even. But isn't that a function of how many miles, air miles you have? You don't have to. The credit card to have access to those, do you? Or do you?

[Rachel Cruz]

Some of them. You do.

[Ken Coleman]

Some of them. If it's named by the credit card one. I've seen those.

[Rachel Cruz]

But if it's like a Delta lounge.

[Ken Coleman]

That's what I'm saying. That you can accumulate if you're flying Delta and you're near, obviously the, the, the world headquarters. So I would. You don't have to have a credit card to experience that. Certainly if you're flying Delta, I would look into it. But that's just a function of you're, you, you're, you're stacking up miles and then you get privileges.

[Caller]

Okay. All right, yeah, that sounds good. I appreciate your insight on that.

[Ken Coleman]

Yeah, thank you.

[Rachel Cruz]

Thanks for calling. Fun traveling.

[Ken Coleman]

Oh, I love that. Sarah's up in Las Vegas. Sarah, how can we help?

[Caller]

Yeah, my question is, my husband has a potential job promotion opportunity within the next few months. Along with that is a requirement that we have a five year old or newer four door vehicle that we have to supply, which we don't have right now. And the only way for us to get that would be to use our almost fully funded emergency fund. So the question is, do we forego the promotion completely because we can't do that, we can't provide the vehicle, or do we use our emergency fund and get the vehicle? If we get the promotion, how much

[Rachel Cruz]

more will the promotion be?

[Caller]

Well, it's base plus commission, so I don't really know. But his boss is hopeful and optimistic that it could be up as much as double.

[Ken Coleman]

Explain to me why the four door vehicle that's required for this.

[Caller]

Oh, he, because the job would be an outside salesperson and he would likely need to use the vehicle to transport things to job sites or whatever. It's just a requirement for the company.

[Ken Coleman]

Okay, got it.

[Rachel Cruz]

And do you guys have a current car you could sell and put some cash towards it?

[Caller]

We do, but it's not, it's, it's already a really old beat up car. It wouldn't be a significant contribution, but we could.

[Rachel Cruz]

Yeah, because if it has to be a five year or newer, if you went on the five year, how much money are we talking? Are you seeing that? You're like, okay, this is how much we'd have to spend on this car.

[Caller]

The research that he's done so far, he's found things in the 13 to 15 range, but it would be nice to go up as much as 20. But that's, that's more than half of our fund.

[Ken Coleman]

I just want to look at this from every angle possible here. So when would he have to take this job or when would he start, in other words? Actually, the better question is when would you have to have the car? If he takes this,

[Caller]

that we, that's not a hard and fast deadline. We don't really know. The job could start as much as soon as two months from now. The vehicle requirement could maybe be fudged through the end of the year, but we don't know.

[Ken Coleman]

Okay, well, so when can we know that answer.

[Caller]

I don't know.

[Ken Coleman]

A lot of items. I appreciate the I don't know. But I'll tell you what I would be doing if I was in your shoes, I would be getting the answer to that question. They.

[Caller]

They've offered him the job question, but I haven't received the answer myself.

[Ken Coleman]

Well, who'd you ask it of?

[Caller]

My husband when he was telling me about this in the first place.

[Ken Coleman]

Hubs needs to get these answers. Here's why. It already sounds as though we have a gap here to where. I love how you used fudge. Right. But if they're going to give you a little bit of leeway, you can't be the only people that have ever been in this situation before.

[Rachel Cruz]

That's where they don't give you any allowance, I guess.

[Ken Coleman]

Let's just assume it's into the year. Okay. Could you guys. I gotta believe you guys could scrape together 13 to $15,000 between now and

[Rachel Cruz]

1,000 bucks a month.

[Ken Coleman]

Yes or no?

[Caller]

No, we. Well, actually, maybe.

[Ken Coleman]

What if you sold some stuff? Rachel and I came over and we're around your house looking around. What could we. Yard sale. And could we. Could we sell enough stuff to make

[Rachel Cruz]

25, even if the car's $3,000? You know, that's 3,000 out of 13. You know, the other car.

[Sponsor/Advertiser]

Right.

[Ken Coleman]

That's my point. What. Well, here's. Here's the exercise. Okay? What, you and your husband, you sit down tonight and go, what do we need to do to come up with 13 to $15,000? And the other thing is, he needs to start giving you some answers. Answers on how much time he has. Because if he can double his income and it requires us to sacrifice and scrape and sell and go do extra jobs between now and that, I would absolutely do it.

[Rachel Cruz]

Yeah. But I wouldn't consider this an emergency, Sarah, because you guys have. Yeah. So I would have a really.

[Caller]

I don't either. That's why I'm in this.

[Rachel Cruz]

Like, I would have a hard time because now if it was in the next 30 days and you're. And it's guaranteed, I'd probably pull some money out to get this done. But you guys have to the end of the year, so you have plenty of leeway and Runway to be able to save and pay for this car. Now, if you got to take a thousand bucks out of the emergency fund to. To round it out.

[Ken Coleman]

To double my income. Sure.

[Rachel Cruz]

Yep. Exactly.

[Ken Coleman]

I think there's some flexibility, but I

[Rachel Cruz]

would Spirit up, push. Hard to say. I. I don't want to touch that emergency fund and what you guys could do. Do you guys have debt at all? Sarah?

[Caller]

Just for mortgage.

[Rachel Cruz]

Okay, good for you guys. That's awesome. Yep. So I mean I would see this as a. Yep. As a self sacrifice.

[Ken Coleman]

I think it'd be a fun adventure to go. Go.

[Rachel Cruz]

How can we, we need $1,000 a month. How do we get it?

[Ken Coleman]

Yeah, how do we do that? How do we generate that? I actually think that's fun. I think it's worth doing. I would, I would talk to Hubs about that tonight. And I think in the counteroffer, by the way, Rachel, go, hey, listen, I want this and I could do this. You gotta give me just a little bit of leeway. Here's my plan. Here's what I'm doing.

[Rachel Cruz]

Yeah.

[Ken Coleman]

And I think if they want him, sounds like they do, they can play ball with you.

[Rachel Cruz]

But it sounds like a good deal. I would buy a $13,000 car to double man.

[Ken Coleman]

The double man come. Sure I will.

[Rachel Cruz]

Yep.

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[Ken Coleman]

See boostmobile.comramsey for details. If you have a simple tax situation like you haven't had any major life changes or big investments, you need to use Ramsey Smart Tax. It's affordable and keeps filing simple and it has the built in support in case you need a little bit of help. Filing early means getting the best deals and you get that tax stress off your shoulders. So go now to ramseysolutions.com smarttax ramseysolutions.com smarttax Brandon is up in Salt Lake City. Brandon, how can we help?

[Caller]

Hi. Well, I just want to start by saying thank you for taking my call. You guys put out such amazing content and just want to let you know it's appreciated.

[Ken Coleman]

Thank you.

[Caller]

Yeah, so I have a pretty complex question, but I'll keep it simple and then you guys can ask questions, I think and I'll fill in whatever you need. But ultimately my question is, you know, I and my wife are both positions and we're Pretty financially sound, and my father is not. He has a pretty well paying job, but still lives paycheck to paycheck and actually got into some trouble this last year and had to borrow money from me. He's actually collecting Social Security now. He's in his 70s and he has no ability to retire whatsoever and so has quite a lot of debt. And I'm imagining inheriting these troubles very soon, and I'm just kind of curious how you guys would recognize. And I'll go about.

[Ken Coleman]

Well, let's, let's address what you mean by inheriting his troubles. What are you going to.

[Caller]

Well, I think, you know, ultimately, I think either health is going to catch up to him or he. He's kind of made some morally ambiguous decisions, and I'm worried that something like the, you know, the, what phrase, eggs are going to come home to rooster? Whatever.

[Ken Coleman]

Well, his debt. His debt is his debt. So. So whatever he's done there from a debt standpoint, that's not coming to you now. Yeah.

[Caller]

In terms of, like, just taking care of him, though, and, like, he's going to be sure.

[Ken Coleman]

I understand that. Yeah.

[Rachel Cruz]

Are you married, Brandon?

[Caller]

Yeah, yeah, yeah. We're both physicians. We both, we make a decent amount of money.

[Rachel Cruz]

Okay. Yeah. How much do you guys make a year?

[Caller]

So I'm in my final year of training now. Next year together, about 500,000 a year.

[Rachel Cruz]

Great. This is always a hard one because, because, you know, on one end of the spectrum it's, you know, some people put up pretty tough boundaries and they're just like, I'm sorry, you know, your decisions are your decisions, and I'm not gonna, you know, have to be responsible for those. And then on the other end, it's like, we're not gonna let our parents, you know, be homeless. You know what I mean? Like, like, like there is a, there is a, a balance in all of this. So what I would probably do is, is you and your wife need to sit down and run, worst case scenario. And I would. And, and then I would kind of play out, hey, what. What would this look like? How far would we go? And then also put up some boundaries where then I don't like that he's borrowing money from you. I think that either needs to be a gift because it's probably never going to be repaid.

[Sponsor/Advertiser]

Right?

[Rachel Cruz]

I mean.

[Caller]

Oh, yeah, yeah. And that, that's. That it was a gift.

[Ken Coleman]

I have no.

[Rachel Cruz]

Okay, okay, okay. Yeah.

[Caller]

So.

[Rachel Cruz]

Gotcha, gotcha, gotcha. Yep. Now that can be a leaky faucet for a Long time. Unless you, unless you put on, you know, put up a, a boundary of, dad, we're not going to give you any more money or, dad, I will help pay your mortgage for six months and that's it. Or, you know, whatever it looks like. But those are, those are boundaries, I think in a plan that you and your wife kind of come together and decide, hey, you know, are we, what, what are we willing to take on, on. Because you're right. I'm like, if he has no retirement and if something happens to him, health wise, he's not gonna be able to work, so he's gonna have no income coming in.

[Ken Coleman]

What would, what's his Social Security payment every month?

[Caller]

Oh, man, I don't know. I don't know what that is.

[Ken Coleman]

I'd find out.

[Caller]

The reason is I think it's a dicey situation. He's also a very private person and for me to like become, invest in his finances, and I understand that can be like a stipulation if he needs help in the future that I have to be able to be invited into his financial life. But to do that right now, I think it would, he would blow up.

[Ken Coleman]

Great. So here's the deal.

[Caller]

You know what happens to get you guys like a. I'll go for it.

[Ken Coleman]

No, I'm just, I'm digging and you just, you just answered your own question. He's super private. He'd blow up or get angry if you, if you weighed in. So you know what? You and your wife do exactly what Rachel said and that's it. Don't do anything else. Say if there's no one else to take care of of him, we will. And in that moment, you can do the best you can to guess what his Social Security is. But you go, okay, he's going to get that until he dies.

[Rachel Cruz]

Yeah.

[Ken Coleman]

And that would be the only income he has. We can't assume that he has long term care insurance. We can't assume that he has. We know he has no investment. We know that. So to Rachel's point, you plan for what you would do. You guys are doctors, so you also know the data. If he had to go into assisted living, you know, what is the average amount of time someone lives in that, that setting? I mean, you can do some homework and go, okay, absolute worst case scenario. This is what dad's situation is going to be. And you know, if no one else can help pick up the bill, then that's something we got a plan for. And I think you can. It's almost like a It's almost like planning for your kids college here. You may have to, you know, invest some money.

[Rachel Cruz]

Where's your mom, Brandon?

[Caller]

Like, not. No, they're not together.

[Rachel Cruz]

Oh, they're okay. They're divorced. Okay. Do you have other siblings?

[Ken Coleman]

No.

[Caller]

Yes, I do, but they. My other siblings are not capable of assisting financially.

[Rachel Cruz]

Okay.

[Caller]

Unfortunately, yeah. Yeah.

[Ken Coleman]

What kind of debt do you guys have?

[Caller]

Me and my wife.

[Sponsor/Advertiser]

Yeah.

[Caller]

So we don't own our home, but are planning on buying a home next year. But we're currently. We have student loan debt, but our savings and retirement are greater than our. Any debt we have. We have no credit card debt. We have no car payment.

[Ken Coleman]

Walk us through through that. What's your. What's your medical. I mean, not medical. Medical school. Student loan. Thank you. Student loan debt. What is that?

[Caller]

There you go. Yeah. So a 300. 300,000 for the both of us.

[Ken Coleman]

Okay. And then what do you have in savings?

[Caller]

So we have about 120 in savings.

[Ken Coleman]

Okay.

[Caller]

And about 250 in 401ks.

[Rachel Cruz]

Great. So, yeah, I wouldn't touch the 401k, but obviously doing the Ramsey plan is to pay off that student loan debt, so half of it is in savings. And then what? You guys. You'll make 500,000. So you pay. Can pay it off in six months, you know, so making sure that you get all that taken care of. Of course.

[Ken Coleman]

Before you try to take care of that.

[Rachel Cruz]

Yep. Yeah. So making sure that you guys are in a good spot, which I think you will be pretty quickly if you do that stuff and rebuild your emergency fund. Yeah. This is always. Yeah.

[Caller]

Can I ask how. When he, like, if, you know, like the debtors come to collect and he can no longer afford his apartment. If I end up paying for an apartment for him, does that. Does his debts in the apartment that he lives or the car he drives, that all goes away? But whatever I provide for him is not a part of that equation.

[Ken Coleman]

If it's in his name, then it has nothing to do with you. Debts, leases, all of it.

[Rachel Cruz]

Yep. But you could furnish an apartment under your name. I'm assuming, however, the apartment complex does that, so.

[Ken Coleman]

Yeah.

[Rachel Cruz]

So like that. Well, it's not really an asset because he'd be renting, but. But they couldn't come after him in any way with that because it would be under your name.

[Ken Coleman]

That's right.

[Caller]

Okay. Yeah. I guess that was kind of my fear that.

[Rachel Cruz]

Yeah.

[Caller]

His debts would make it prohibitively difficult for me to take care of him and.

[Rachel Cruz]

That's right. I hear what you're saying.

[Caller]

Yeah, it's kind of independent.

[Rachel Cruz]

Does he own a home?

[Caller]

No, no, no, no.

[Ken Coleman]

He.

[Caller]

No, he. And just to get like a scope into this, he actually tried to go back to school in the 70s and took out student loans to do that, and then ended up not going to school and just using that money to buy car.

[Rachel Cruz]

Stop it. Oh, my God. How much debt do you think he has?

[Caller]

Oh, man. I. If, if he told me $500,000, I wouldn't be surprised. If he told me $10,000, I would be surprised.

[Rachel Cruz]

Yeah, well, it.

[Ken Coleman]

Sorry. You're. Sorry you're carrying this burden.

[Rachel Cruz]

It's terrible, Brandon.

[Caller]

Oh, yeah.

[Ken Coleman]

But I would tell you this. I want. And I say that, but I want to quickly say, make sure you understand what you're supposed to carry and what you're not. Okay? You're the only sibling that's going to be able to take care of him. That's a burden. But you do not have to worry about his debt. You don't have to worry about his mistakes. You understand what I'm saying? Like, once, you know, all that stuff will be written off. He didn't have a, you know, a pot to pee in is the old phrase. And so none of that's going to come back on you. That'll get wiped out. So you only have to carry the burden of taking care of dad when he can no longer take care of himself. And that's the medically. And so you can plan for it, but clean up your house first. First, because you don't want that to be a stressor. It's already going to be a potentially resentful burden.

[Rachel Cruz]

But, you know, and I want you and your wife on the same page, too. I don't want that to be an issue.

[Caller]

Yeah, yeah, we're, we're, we're both very family centric. And she's like, hey, whatever we need to do, you know, I trust you and.

[Rachel Cruz]

Yeah.

[Caller]

And we're definitely together on this.

[Rachel Cruz]

If it does come to the point, and you probably know this, that of you having to help financially, always give in terms of an actual item, meaning, like, don't give them cash. Right. That you, if you end up paying the rent, you pay the rent, the utilities, get a gift card to the, to the grocery store, and it's like you get a hundred bucks or for whatever it is, as much as. Yeah. Not. Not handing over cash because he obviously doesn't know how to, how to handle that. So. Brandon, you're, you're a good son and a Good and a good husband. So, yeah, we're, we're, we're with you guys.

[Ken Coleman]

Welcome back to the Ramsey show in the Fair Winds Credit Union studio alongside Rachel Cruz. I'm Ken Coleman. Excited that you are with. With us. 888-255-2225 is the phone number. Eileen is up next. Eileen, how can we help?

[Caller]

Hi, I'm calling about a trust that

my husband's family has and when.

We always thought when he passed or if he passed before me, that I would be the one that would inherit his share.

And we have found out that it would go. Passed me into my daughter.

And we're just wondering if it would

be ethical for us to ask her

to split the inheritance if, if by any.

If he predeceases me.

[Ken Coleman]

So it hasn't. Just to make sure it hasn't happened yet. He has not passed.

[Caller]

No, he is still here. And we were just. We're in our 50s now. We're trying to figure out what to do.

[Rachel Cruz]

But his wishes are for it to go to the grave. Grandkids.

[Caller]

Well, it was set up, you know, 80 years ago.

It was the, the people that are the primaries of the trust are the grandchildren. And my husband would be a great grandchild. And it goes through the family name.

[Rachel Cruz]

Oh, so it's beyond even your husband's parents, a generation above them?

[Caller]

Yes, it's generations, yes.

[Ken Coleman]

So he can't change it. Correct.

[Caller]

He cannot change it. It would. It would just.

It is.

[Rachel Cruz]

Has it always skipped a generation? Is that part of it doesn't.

[Caller]

It doesn't skip.

It just follows the family name. So he gets a trust check, as does everybody else in that, that generation of the family every quarter. But it's.

And the, the generation that currently is

on those trusts, when they pass, it ends.

And the money would be distributed.

[Sponsor/Advertiser]

Right.

[Rachel Cruz]

But then the money's distributed to skipping a generation. Skipping a generation.

[Ken Coleman]

Only those with the name.

[Caller]

With the name, exactly. Wouldn't skip. If my husband's alive, he would receive it if he. If only if he pre. Deceased them.

[Ken Coleman]

What about your daughter?

[Caller]

If she were to get married, it would still be.

She would still be the family name. She's the.

The.

[Ken Coleman]

Got it. Okay. I'm tracking now. It's the, it's the lineage. It's following the name through. Okay, got it.

[Caller]

Yeah.

[Rachel Cruz]

Yeah.

[Ken Coleman]

No, I got to tell you, when you first said it, I was first going to go, well, I feel like you got to talk to the old guy about it and let him weigh on it, but it's not his call. Right. So it's already been set in motion.

[Rachel Cruz]

Yeah. They're trying to keep it in the bloodline. Bloodline.

[Ken Coleman]

And I don't want to speak completely on behalf of my colleague here, but we both had a kind of gross face when we heard you say, is it okay to talk to my daughter and say, hey, I know this is supposed to come to you by the bylaws and in stone, but how would you feel about cutting us in? I personally would feel gross about doing that. That's my take.

[Caller]

Okay.

[Rachel Cruz]

Yeah. I would say, Elena, you and your husband need to set you guys up that if something happens to him, that he has life insurance and that you're taken care of and that you don't need this trust because you guys are in a good spot, you know?

[Caller]

Yeah. Yeah. We never had it. And it wasn't until we were in our 60s because we always assumed and had never checked how this passed. And that's how. Yeah, that's how we.

[Rachel Cruz]

So you guys didn't do life insurance insurance? Is that what you're saying? Because you knew this money was coming. Yeah, so I wouldn't. That would not be how I would. I would function more independently of that.

[Ken Coleman]

How are you set up for the future? What's your current retirement situation?

[Caller]

You know, we probably have 3.350Maybe put aside in between 401ks and savings Etc. And another. Maybe the.

[Rachel Cruz]

The whole trust issue, like, do you think it demotivated Joel?

[Caller]

No.

We were in a bad position for many, many years.

[Rachel Cruz]

Okay.

[Caller]

And I. Yeah, yeah. So

we do.

We do.

We still have a mortgage. We.

But we probably have, you know.

[Rachel Cruz]

How much is left on it?

[Caller]

Thousand and ninety. 99,000.

[Rachel Cruz]

Okay, that's great. How much do you guys make a year?

[Caller]

Only about.

I would say about 89,000 combined.

[Ken Coleman]

And what will the house be worth

[Caller]

if we sold it today?

Over 400.

[Rachel Cruz]

Okay.

[Ken Coleman]

All right. So that's getting us near. Let's call it 700,000. Okay. Any other savings or anything beyond the house equity and the retirement fund? Anything else?

[Caller]

I don't think so.

I don't think I'm missing anything. Anything.

[Rachel Cruz]

Okay. And how old's your daughter right now?

[Caller]

24.

[Rachel Cruz]

Okay.

[Ken Coleman]

And how long do you guys feel like you're gonna work?

[Caller]

You know, probably. Well, the.

The work we're doing now, we probably like to stop by 65, 67 and find something else. We both have more physical jobs.

[Ken Coleman]

Okay.

[Caller]

Yeah.

[Ken Coleman]

And the reason I'm saying that is because based on history, Rachel knows this, that you know, that. Three. How much did you say you had in retirement? Three. Fifty.

[Caller]

Fifty combined, maybe. Three. Yeah, two. So over the next 350.

[Ken Coleman]

All right, so that should double over the next seven years. Okay. Okay. And then if you look at your home, so you start adding the numbers up. Okay. And so now you're looking at what do we got, 400 on the house? So what, 1.1 million in seven years. I don't know what your Social Security situation will be, but you start stacking all that up and you know, whatever you guys can do over the next seven to 10 years. Years to invest a lot of money, that's going to help you and be far more comfortable in your 70s and 80s.

[Rachel Cruz]

And when you think about it, Elaine, and again, all the, your call's hypothetical, right. Your husband has not passed. None of that. Yeah, nothing is happening. Totally. Yep. So again, hypothetically, you know, if, if, if the grandparents are still living for another, I don't know, 10 years, 15 years, you know, you're such. And then your husband passed. If he passed away, then technically you would have probably at that point a half a million $600,000 home that you can sell and you know, down, you know, downsize, Put that cash with the investments and you'll have well over 1.5-ish million. You know, you'll be fine without this inheritance is what I'm saying. So.

[Caller]

Okay.

[Rachel Cruz]

Yeah, I probably wouldn't worry about it. And I do feel, I do feel weird saying yes. Ask your 24 year old daughter. Daughter for her inheritance. I don't know.

[Caller]

We didn't, we don't even want her

to know that that's the possible amount because we don't want it to taint

[Rachel Cruz]

her in any way. That's fair.

[Caller]

Take her drive.

[Rachel Cruz]

Yeah, remind me that's fair.

[Ken Coleman]

Remind me, what was the amount that you.

[Caller]

Probably around 2 million. But at 24, that could be, you

know, you could blow through that if that were something that happened.

But of course that's hypothetical as well.

[Rachel Cruz]

They would have to pass and your husband would have to pass. Yeah, yeah, yeah, yeah, yeah.

[Ken Coleman]

I appreciate the question. That's where we stand on that. But I think more important, your focus needs to be, hey, we can actually finish well, but we should probably get some intensity and see what we can do from an earnings standpoint. Certainly tighten things wherever we can tighten to invest as much as we can at this stage. And over the next 14, 15 years, that's going to turn into a sizable chunk for you guys. That should allow you some dignity and some comfortability that would be my main focus if I were you.

[Caller]

Sounds good. Yeah.

[Ken Coleman]

Thank you so much.

[Rachel Cruz]

That's a good question.

[Ken Coleman]

Yeah. Thanks for the call, Rachel.

[Rachel Cruz]

That's a hard thing. I hear that with wealthy families passing on generation wealth, that it stays within the family.

[Caller]

Mm.

[Rachel Cruz]

And I get that in. In one sense, because it is like, what if dad remarries some crazy woman and she, you know, he passes and she takes all the money? You know, it's like kind of a drama moment of a movie.

[Ken Coleman]

I've seen that a few times.

[Rachel Cruz]

But you also want there to be like, a little bit of an addendum of, like, okay, if you've been married more than 30 years, the wife can take the get the money.

[Ken Coleman]

I don't know.

[Rachel Cruz]

Do you know what I'm saying? Like, I don't know what that looks

[Ken Coleman]

like, but that's very interesting. You mean you give her an out after 30 years, she cashes out?

[Rachel Cruz]

Well, that she. That. That Elaine would get the money, like, if her husband had passed.

[Ken Coleman]

I see.

[Rachel Cruz]

Like in the will or in the trust, she passed.

[Ken Coleman]

I thought you meant, like, you know, I've done my time. I'm out. I'm checking out. It's been a good run, but I'd like to be on my own and travel. I thought that's what you were talking about. No, I get that. I like that.

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[Ken Coleman]

Foreign. Hey, if you are buying or selling a home, you know this is a big transaction and you don't want to get caught up in the hype, all the clickbait out there, and make you not make the right decision. So we want to make sure that you understand what's going on with the latest trends. Give you an idea. Median home prices dipped a little below 400,000 last month. Very typical for this time of year. Mortgage rates also dipped 5.44% in January. That's down from 6.27. So it's giving buyers some breathing room. To learn more about the housing market trends and get free tools to help you buy or sell with confidence. Go to ramseysolutions.com market. That's ramseysolutions.com market. Elise is up next in Virginia. Elise, how, how can we help?

[Caller]

Hi, Ken and Rachel. Thank you so much for taking my call. Can you hear me okay?

[Ken Coleman]

Loud and clear.

[Caller]

Perfect. In December, My husband's Roth 403 was incorrectly transferred into a traditional IRA account and has since made $1,000. Is there any way to transfer the money to the correct Roth IRA account without paying taxes on the whole account all over again?

[Ken Coleman]

Who did this? Who made the faulty transaction?

[Caller]

So we, we opened up an account with a, with a financial institution and selected rollover, but it did not say traditional or Roth and then indicated to the first financial institution that it needs to be a Roth rollover. But the number listed was a traditional account. So was it instead of like not going through, they, they cashed the check and when we're doing our taxes for this year, found that it was not,

it was not Roth.

It was traditional.

[Rachel Cruz]

Okay. Has he fixed, has he gone in and fixed future contributions or have you guys not even funded for 2023?

[Caller]

We just stopped funding the account as a whole until we can figure out what we're supposed to do.

[Rachel Cruz]

Yes. Okay. Well, there is something called recharacterizing the contribution. And so you may be able to do that without penalty or tax before tax deadline, which is in April. It's coming up. Do you guys have a tax pro that you're working. Working with?

[Caller]

We do, but I'm not sure how much I love our current tax person because they're saying there's no way to do it. And the one financial institution is potentially recommending an excess removal of funds, but I'm not sure if that would trigger taxes on the cost basis of the account.

[Rachel Cruz]

Yeah, I would get a. Because there's a small lane at which you can do this because it is from a time period perspective so quick. And it's only, you know, I mean, the amount, I guess doesn't really matter. It's more the time frame that you're looking at. So I would probably go get a second opinion. If you go to ramseysolutions.com you can check out one of our, our tax pros that's in our trusted program. And I would, I would get on the phone with one of them and ask. But also, if, if, if that can't happen, if you guys can't be in that lane and you do have to pay taxes, is it just a thousand dollars dollars?

[Caller]

No, the cost basis is 82,000 and 1,000 of growth. So I don't mind paying taxes on the 1,000 of growth. Yes, but it'd be like a $20,000 tax bill.

[Rachel Cruz]

Yeah, totally. Yes. I would. I would contact a Ramsey trusted tax pro and again, go to Ramsey solutions dot com. But, yeah, to recharacterize the contribution is a way. You would do that if you can. But I. But I'll be honest, I'm not. I'm not 100% sure.

[Ken Coleman]

Me either. And I. And again, I appreciate your spirit of saying, well, I don't like our tax person because they said we can't do it, but let's get a second opinion and a third opinion. If all opinions line up, you don't have to like it, but it is what it is. It's unfortunate. Hopefully you guys can undo that and not take too much of a hit. But, you know, unfortunately, you may just be stuck. What's that?

[Caller]

If we do have to, like, we can always leave. Leave it in the traditional account. But we're 34 and 35, so. Yeah, by the time we retire, it'd be like one point.

[Rachel Cruz]

Totally. Yeah. So, yeah, if you can't.

[Ken Coleman]

Yeah.

[Rachel Cruz]

If you have to end up paying taxes on it, I eventually would. You can roll over some per year so you're not hit with an entire tax bill of 20 grand. But I would eventually convert all of that. 82. Yes. To a Roth eventually. So, again, you can break it up year by year if you need to, from the tax perspective, but I'm with you. Yes, if you're in your early 30s, I would get it to a Roth, but that's so frustrating. I'm hoping there's a way out for you guys if you get a good tax pro in your corner.

[Ken Coleman]

And silly question here. Do we know whose fault it was? And I hate using the word fault, but was it you guys clicking on the wrong button, or was it a mishap mistake made by the institution?

[Caller]

So our accountant says that it's the financial institution's error and it's their responsibility to fix it.

[Rachel Cruz]

Okay, well, then.

[Caller]

And that institution says it's on our tax person to file the correct paperwork that indicate X amount was a cost basis.

[Ken Coleman]

Okay. And your tax pro is not willing to do this

[Caller]

either.

Yes. Or they're saying it can't be done because they switched it to where you can't recharacterize the entire account. But I do think you can recharacterize maybe a contribution like Rachel's talking about, I think.

[Ken Coleman]

Gotcha. Well, here's my point. Might be worth looking at, looking to a lawyer, you know, who, who specializes in this area. Because someone, because tax bill is a tax bill and you, if it's on the financial institution, I would want to get two or three opinions that are legitimate that would say, yeah, it's on the financial institution. At which point now you have, you know what I mean? That's where I would be going right now. I would exhaust that and, you know, not have to take this on yourself.

[Rachel Cruz]

So frustrating. I'm so sorry. So sorry. I'd fight though that human error in all of it cost you ends up costing you money.

[Ken Coleman]

So Bruce is up next in Charlotte, North Carolina. Bruce, how can we help?

[Caller]

Hello, Rachel and Ken, thank you for having me.

[Ken Coleman]

Sure.

[Caller]

I'm a 62 year old disabled Air Force veteran and a retired social worker. Today I just bought my 62 year old fiance an engagement.

[Ken Coleman]

Hey. Congratulations, Bruce.

[Caller]

Thank you. She doesn't know it yet. I'm going to ask her later, later this year to marry me.

[Ken Coleman]

Okay.

[Caller]

My question, my question is I earn about 52 grand a year and she earns about 150 grand a year. We both are homeowners separately and so I would like to come under one roof eventually. I live very inexpensive. She has much more of a much larger house, costs a whole lot more and her interest rate is a whole lot higher than mine. I live on that income. I live about 17 or $1,800 a month with everything. I have no debt besides my house. She has no car payment herself, but probably 20 grand in credit card debt. So with that, I would like to know whose house do we sell first? How do we make this, you know, how do we come together under one roof? I don't want to live in her house permanently and I don't mind if she lives with mine until we sell it.

[Rachel Cruz]

Why don't you want to live in hers? I'm just curious.

[Caller]

Her house is very much hers. She loves having me there. But my preference would be for us to sell both properties and then buy something together.

[Ken Coleman]

Yeah.

[Caller]

Yes, ma', am. I would like that.

[Ken Coleman]

I do a what if conversation between how I pop the question.

[Rachel Cruz]

What does she want to do? Have you guys talked that far?

[Caller]

We have talked that far. She really, really, really loves my house. In fact, she does not want me to sell it because I live on a man made lake. And it's very pristine and beautiful and peaceful and all of that. But it is small. It's three bedrooms and two baths, but it's small.

[Ken Coleman]

Does she Want to live in that house.

[Caller]

She would love to live in this house. But then when we talk about it, she wants to make it larger and do things that I'm just don't see the needle girl.

[Rachel Cruz]

Bruce, you got a spender and I appreciate that. That's me at 62. I'm really like, listen. Yeah, so what I would do is, yeah, I would, I would come together and have this conversation and just say, hey, there's probably gonna be a middle ground. And I think finding a new home, home for both of you could be great. Selling both. We don't really talk about prenups a lot, but that would be something as you're older and if you guys both have grown children, be thinking about your assets in that way. Yeah. So some, some things to think about for sure, Bruce. But congratulations. We are, yeah, we're excited for you. But combine the, combine the money as much as you can when you guys get married and become one.

[Sponsor/Advertiser]

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[Ken Coleman]

the Ramsey Show Question of the day is brought to you by why refi? When your private student loans are in default, your progress stalls out. Why refi Helps you restart by refinancing defaulted private student loans in a low fixed rate payment that fits your budget so that you can stop spinning your wheels. Visit yrefi.com Ramsey that's the letter y r e f y.com Ramsey it may not be available in all states. States.

[Caller]

All right.

[Rachel Cruz]

All right. Today's question comes from Marissa in Louisiana. My husband and I disagree on what non essentials to eliminate on what non essentials to eliminate while paying off debt. I think cutting subscriptions like Netflix along with purchasing sodas, eating out coffee shops, stops, pet treats, etc will make a big difference in paying off the amount of debt that we have. My husband thinks those are so small in comparison to the debt that we have and we should not cut those things out because they make us happy. What is your perspective on this dilemma? Oh, man. Well, there's just an overarching philosophy that is just True, mathematically that the, the more you sacrifice and the more you don't spend on things and the more you put it towards debt, the faster you're going to get out of debt. So what does that look like in a process? You know, Jade Warshaw, her and Sam paid off, you know, gosh, half a million dollars and it took seven years. So Jade would say there were certain seasons of that seven years of like, hey, we need a little bit of a breather here or there. But they were pretty gung ho the whole time. But there were things that they did to survive for seven years. Right. So if it's a long term play, like a major marathon, and I'm talking three, four, five, six years, there may be the little things here and there that cost, you know, nine bucks, but it just gives a little joy through it. That's great. But if you can do this in nine months, I might cut everything and get it done. Does that make sense? There's a little bit of the longevity approach.

[Sponsor/Advertiser]

I agree.

[Ken Coleman]

I think everything on this list I'd cut except for the pet treats. And I'll tell you why. I've got two doodles. I love my doodles.

[Rachel Cruz]

You and George and your dogs.

[Ken Coleman]

But listen, everything okay? Netflix? Sure. Sodas?

[Rachel Cruz]

I would pay for a soda. No, pay for a soda.

[Ken Coleman]

It's not healthy for you. Too much sugar. Eating out. Absolutely. We know what Dave says. You don't see the inside of a restaurant unless you're a waiter. You know, that whole deal. Okay, here we go. Coffee shop. Overpriced coffee. Make your own. But the pet treats, let me tell you why.

[Rachel Cruz]

You keep your dog will be fine.

[Ken Coleman]

No, they won't. Because my doodles, every morning I get up before everybody else. These don't dogs. I let them out, I let them back in. And I'm getting my coffee ready. I got a whole process. They would drive me to the brink of insanity if I didn't give them their treat in the morning.

[Rachel Cruz]

Joe, everyone.

[Ken Coleman]

Joe knows everyone's no.

[Rachel Cruz]

Give that dog a little peanut butter on a little cracker and call it a day. Call it a day.

[Ken Coleman]

Now all of a sudden your missus cut the budget on the dog treats.

[Rachel Cruz]

Call it a day.

[Ken Coleman]

Peanut butter on a cracker.

[Rachel Cruz]

Sure. That's a treat. That dog doesn't know it's a dog dog.

[Ken Coleman]

That's true. My doodles totally think they're human. Completely.

[Rachel Cruz]

And by the way, do think they're human.

[Ken Coleman]

They act like it. They act like humans. And I love them for it. I love my Doggies. All I'm saying is everything else. I would put the doggy treat in the grocery budget and don't go crazy with them.

[Rachel Cruz]

Yeah, no, I hear you.

[Ken Coleman]

Don't compare me to George. That's a. That's a bridge too far. Logan is up next in Dallas, Texas. Oh, what did I do?

[Rachel Cruz]

Oh, no.

[Ken Coleman]

Oh, boy.

[Rachel Cruz]

You hung up on Logan.

[Ken Coleman]

The wrong button.

[Rachel Cruz]

You got so flustered.

[Ken Coleman]

Hold on. I'm so flustered that I got the doggy treats. I'm up in arms. I got it.

[Rachel Cruz]

All right, you got it.

[Ken Coleman]

There's Logan right there. Logan, I'm sorry. I pressed the wrong button. How can we help?

[Caller]

No, all good. I think I may be the first person in Ramsey history that y' all hung up on. You know, most time it's people hanging up on. On y'.

All.

[Rachel Cruz]

That's true.

[Ken Coleman]

You know, I've never hung up on anybody.

[Rachel Cruz]

Dave hung up on someone on Monday next to me. Yeah, he was feisty and he hung up on.

[Ken Coleman]

And I got to tell you, I enjoyed it. It was fun to witness. But I won't do that.

[Rachel Cruz]

We will not hang up.

[Caller]

I'll be on my best behavior, okay?

[Rachel Cruz]

I promise.

[Ken Coleman]

We'll see about that. What's going on?

[Caller]

I am calling with a question. My wife and I had our first child in October. Congrats and thank you. And I thought we were being very responsible and started saving when we figured out we were pregnant. Pregnant up to our out of pocket maximum with insurance. Well, we have now gotten to where we have met that out of pocket maximum, but still are receiving hospital bills. And these hospital bills are to about the tune of $1,400. So I'm a little bit conflicted with how to handle that. I have the money to pay it, but I don't necessarily feel like I should. And you're right. Looking for some guidance.

[Ken Coleman]

All right, you are right. If you are saying. If what you're saying is true. Yeah. I'd be the worst nightmare of my insurance company until they got so sick of hearing my name. Because if the policy is the policy and you've hit your out of pocket, then hold your ground and look at.

[Rachel Cruz]

I'm not shocked. The billing within the medical world, everything. It's. It's horrible. So, honestly, it's probably an administrative error, to be honest. They probably didn't even hit something in a computer. They should have.

[Ken Coleman]

Wait a second. He's got a retort.

[Rachel Cruz]

Oh, what is it?

[Ken Coleman]

So.

[Caller]

So we have been down a few rats on this. I talked to my wife's talk to the insurance company. I don't even want to know how many times I've. I've been on the phone with them a couple. She has a lot more patients than I do. But all that to say they are claiming that the reason for the overage is that this hospital which is in their network exceeded the amount for a private room that they allocate on the policy. However, this hospital that again is in their network does not have any other option. It's not like we like opted for some sort of an upgrade to get right, you know, the fancy room.

[Rachel Cruz]

It's just the rooms there that cost that much.

[Ken Coleman]

See that's between, that's between the hospital and the insurance company. And I would just. Absolutely, we fight to the end on that. This is the kind of crap that the American people are having to deal with. I'm so sorry that you're having to deal with.

[Caller]

I guess the question is who do I, who do I need to fight? Point me in the right direction. Insurance company is at the hospital.

[Ken Coleman]

I'd go to the hospital and I'd say, you aren't going to get paid on this from me. So this is where you guys go to the insurance company and fight it out with them?

[Caller]

Yes, so I did that and they could not help me over the phone. Of course I could not get a hold of somebody who had the authorization to settle the amount. I was told to send an email to some very generic billing email address. So I, you know, got on chat GPT and got some help with professional wording that was maybe a little kinder than what I would have written.

[Ken Coleman]

I show up, I'd show up, show

[Caller]

up, show up and just, okay, just

[Ken Coleman]

go, hey, here's the deal. I got an outstanding situation. You guys want to get this paid on this fourteen hundred dollar bill. Let me tell you where I'm at and you've told me to do all this and I've done it. By the way, I can show you my record of sending the email. Go in there and make the case and go, hey, I'm not mad. I'm not going to, you know, threatening. I'm here because I need you guys to get together and insurance and I would, you know, I just wouldn't pay him a nickel is my point.

[Rachel Cruz]

Yeah, I would not pay them in

[Caller]

frustrating because I mean there's a lot of people, I have friends now and I don't necessarily agree with this but they just don't pay it because supposedly it doesn't count against you financially or Credit scores and all that. But that doesn't necessarily sit well with me. Like, I don't want to just.

[Rachel Cruz]

You want it resolved eventually.

[Ken Coleman]

Yeah. I'm not saying. When I say don't pay it, I don't mean just, you know, put your head in the sand. But I'm saying I would fight and put it on them and say, guys, I'm not going to pay something, something. And here's why. You all need to figure this out. My policy says this. I've done everything that I can do and you two need to get together. Hospital. You sent the bill. Insurance won't pay it. That's Yalls problem.

[Rachel Cruz]

How long Logan have you guys been dealing with this?

[Caller]

So our daughter was born in October, So since October the eighth. Well, I say that.

[Rachel Cruz]

Well, when did the bill start coming?

[Caller]

2 months to even get the bills out. So. Yeah, so. So, I mean, those started showing up probably late December, early January.

[Rachel Cruz]

Okay.

[Ken Coleman]

Yeah. I'm going to double down on what I said now. Let me tell you why. Because if you go talk to somebody and you're nice and you are a nice guy and you just go, hey, I'm here, I'll wait. I got two hours today. I got an hour next Thursday. I'll be here. Count on it. And here's what I want to do. I want to show you everything. Because you all. It's your bill. You have to explain to my insurance company that we didn't get an upgrade. We didn't get the. The corner suite with the couch pull out. This was your. The room you gave us. And I think if you're kind and civil and you just show and say, this is your problem. I don't know this. And so they've got to figure this out. This stuff happens all the time. You know what happens? I believe deep down, Rachel, this is a conspiracy theory.

[Rachel Cruz]

Probably love it.

[Ken Coleman]

I believe they just love to not deal with it, knowing that people eventually

[Rachel Cruz]

give in and they'll just pay it.

[Ken Coleman]

And I think of you, just say, I'm not giving in.

[Rachel Cruz]

It's the fight. And you hear this all the time with medical stuff. It is the billing, all of it. It is a. It's exhausting. But for that and for your ground, if you want to stand on there, do it.

[Ken Coleman]

Hey, guys. George Camel here. Do you ever feel like insurance companies only care about your money and not what you actually need? Well, there's a better way. When you go to Ramsey's Insurance resource Hub, you'll start feeling confident that you're getting the right Coverage that's truly best for you. You'll find helpful info on everything from life insurance, health insurance, identity theft protection and more. And when you're ready to get the coverage you need, you can connect with a Ramsey trusted insurance pro who will only get you what you need at the best price. Go to ramseysolutions.com insurance ramseysolutions.com insurance. Our scripture of the day comes from Philippians 3, verses 13 and 14. One thing I do, forgetting what is behind and straining toward what is ahead, I press on toward the goal to win the prize for which God has called me heavenward in Christ Jesus. Our quote today is from CS Lewis. Getting over a painful experience is much like crossing monkey bars. You have to let go at some point in order to move forward. Oh, love the good it is. Now, quick question before we move on. Did our monkey bars still on children's playgrounds?

[Rachel Cruz]

They are. They're there.

[Ken Coleman]

Okay. I'm happy about that.

[Rachel Cruz]

Me too.

[Ken Coleman]

My wife and I were talking recently. We were looking through some old friends photos and I'll never forget the first time our oldest, who's now 20, we did Monkey bars and I got in trouble because I let him fall.

[Rachel Cruz]

Oh gosh, Ken. Sometimes they're super high.

[Ken Coleman]

It wasn't how old.

[Rachel Cruz]

Okay.

[Ken Coleman]

And there were wood chips below, so it wasn't concrete. And I. And when I say fall, he wasn't like panicking or freaking out. He was just letting go. And I. And I was right there.

[Rachel Cruz]

Yeah.

[Ken Coleman]

And I kind of guided him as he felt because I wanted him to go. It's okay.

[Rachel Cruz]

Yeah.

[Ken Coleman]

It was not okay.

[Rachel Cruz]

Oh no.

[Ken Coleman]

Stacy.

[Rachel Cruz]

Stacy was not happy. She's like, Ken, what are you doing?

[Ken Coleman]

She had a word.

[Rachel Cruz]

What are you doing, Ken?

[Ken Coleman]

He could have broken his leg, his arm.

[Rachel Cruz]

All for a little. For a lesson on the wood chips.

[Ken Coleman]

On the lot of wood chips. A splinter. Yes.

[Rachel Cruz]

Might be able to anyway bounce.

[Ken Coleman]

I learned my lesson there.

[Rachel Cruz]

So dads, you remember that 20 years

[Ken Coleman]

later get the hands up and. And let them fall little bit, but

[Rachel Cruz]

kept catch them right before and then

[Ken Coleman]

they're going to learn some trust in you. I was trying to do a deeper life lesson. Did not go the way.

[Rachel Cruz]

Not for the three year old Ken.

[Ken Coleman]

There it is. Be careful the monkey bars. Amir is joining us now in Philadelphia. How can we help?

[Caller]

Good afternoon. How are you?

[Ken Coleman]

I'm doing well. How are you?

[Caller]

I'm good, thanks for asking. I wish a lot better, but. Oh, I'm doing good, thank you.

[Ken Coleman]

Okay. How can we.

[Caller]

I'm about 50 to 55,000 in credit card debt with another 20 on top because of my car. And I just needed some advice on how to get out.

[Ken Coleman]

Okay.

[Rachel Cruz]

Oh, man. What's the credit card debt? What caused you to go into $50,000 of credit card debt?

[Caller]

Well, I'm. I was divorced about three or four years ago now.

[Rachel Cruz]

Okay.

[Caller]

And I was just distraught after that. I wasn't paying attention to where my money was going.

[Rachel Cruz]

Okay. So it was just kind of lifestyle spending, grief, spending just in the. In an unhealthy place in life. And money was a little bit of an outlet to.

[Caller]

Yes.

[Rachel Cruz]

Medicaid better.

[Caller]

Absolutely. I don't drink or smoke, but it, again, just not being as responsible as I should have been.

[Rachel Cruz]

No, it's fine. Yeah.

[Ken Coleman]

What kind of income do you make?

[Caller]

I make about 60 to 65k.

[Ken Coleman]

What do you do?

[Caller]

Truck driver, semi.

[Ken Coleman]

Okay. And anytime, any opportunity for overtime. Right now, are you capped?

[Caller]

Absolutely.

[Ken Coleman]

How much?

[Caller]

It's kind of hit or miss. There's like. There's no.

[Ken Coleman]

Okay.

[Caller]

Well, I mean, to give you a direct answer, maybe one. Once a week, Once or twice a week.

[Ken Coleman]

All right, let's go, let's go. Once or twice a week. We're just kind of ideating for a second. Okay. Once, twice a week over a four week month. How much extra income would that bring to you

[Caller]

over a month? It would bring me maybe two to 400 extra dollars.

[Ken Coleman]

Only two to 400. Okay. Is this open road or is it local? Local driving?

[Caller]

Local.

[Ken Coleman]

Okay. So how many hours a week are you putting in driving right now?

[Caller]

Right now? Anywhere from. From 40 to 50.

[Ken Coleman]

Okay. And. And do you have the capability, I don't know what's going on in your relationship life, but do you have the capability of driving an additional 20 hours if you picked up a second truck driving job that had a good hourly rate? I'm thinking 20 plus an hour. Hour.

[Caller]

That's the thing. I have a daughter.

[Ken Coleman]

Okay.

[Caller]

And we do have a child custody arrangement.

[Ken Coleman]

Okay.

[Rachel Cruz]

How often do you have her? Is it every other week or is it certain days of the week?

[Caller]

Yeah, certain days. Three days out of the week and then every other weekend.

[Ken Coleman]

Okay. You get where I'm going. One of the, one of the things you have to do here is get more income, and that's going to allow us to. To pay off $75,000 worth of debt. Tell me about the car really quick. How much do you owe? Well, you owe 20 on the car. What is it worth?

[Caller]

Yeah, it's about 20. I'm not sure what it's worth. It's a 2015. It's in kind of good shape with 90,000 miles on it.

[Rachel Cruz]

Do you think you could get 20 out of it or more?

[Caller]

Nah, I think I'd be lucky to get 16. 17.

[Ken Coleman]

What's the car payment every month?

[Caller]

600.

[Ken Coleman]

Do you have good credit?

[Sponsor/Advertiser]

Credit?

[Caller]

Absolutely not.

[Ken Coleman]

Okay. Because what I was thinking there, Rachel, is do we go to a credit union and try to get out of that car?

[Rachel Cruz]

Yeah. So I would you. Kelly, Kelly, blue book this car, okay. And let's just say it's 17,000. Amir. What I would say is my first goal would be to get a thousand dollar emergency fund. And then I think what I would do is start to save and stockpile and see if you can make, you know, $1,500 extra emergency month. Okay. And within six months, you'll have six grand. So you'll get, you can throw three of that, 3,000 of that at this car. And so when you sell it, you can, you know, you'll be clean of it, and then you'll have another 3,000 to go buy a really crappy car when that sells. And then that gets you 20. So now you're down to 50,000 of credit card debt. And then you can start really attacking that credit card debt. And again with what you're making. And if you can work extra, you know, it may take you about two years to climb out of this credit card debt, but you, you could, you can do it.

[Caller]

It's just however long it takes. I just need to be pointed in the, in the right direction. And I'm pretty dedicated. Like, once I get the ball rolling, I just need to be told that I can do it.

[Ken Coleman]

You can. Listen, let's get real numbers here, okay? If you did $3,000 a month, now this is going to be extra income. And life is not going to be fun. Okay? You're going to be working like crazy. But if you can do $3,000 a month, okay, that's going to get you out of this debt in a year and a half, a half, you got

[Caller]

to have that 3,000 extra on top of what I'm.

[Ken Coleman]

Or, or, I mean, well, if you play Rachel's plan here, like she's talking about, we get rid of this car, then you've got the 55 of credit card debt. I'm talking about that number.

[Rachel Cruz]

And if you freeze up your car payment too, Mary, that's 700 bucks right there. So out of that, 3,700 of that for Ken's path is part of that, right? So really, you're trying to, to find two extra thousand dollars or $1,000. Right. So anything extra with that car payment that you're not paying that car payment anymore, cuz you've sold the car, that's going to really free up a lot and you really will start moving. And what's crazy too is, you know, we talk to so many people when you're on a journey that's, you know, that two to three years, even four years, you know, you may get a raise in the meantime. You know, stuff, stuff happens in that length of time. And any extra money that you, you have, you throw at this credit card debt. And how many credit cards equal the 50,000?

[Caller]

5. 5.

[Rachel Cruz]

Are any of them in collections?

[Caller]

I think one is, one is okay.

[Rachel Cruz]

Because if any are fall into collections, there's a good chance you can negotiate that down as well. So if that's even a $5,000 out of the 50 or whatever it is, 10,000, you could probably negotiate that for half or even less than, than half. But yeah, but where I would start, Amir, is I would get a thousand dollar emergency funds. Do you have $1,000 right now?

[Caller]

Yes.

[Rachel Cruz]

You do? How much do you have saved?

[Caller]

Want to say about maybe 24 right now? 2400.

[Rachel Cruz]

2400. Okay.

[Caller]

Not a lot.

[Rachel Cruz]

No, that's great. No, that's awesome. So yep, I would keep a thousand as an emergency fund. I would have that other 1400 as my get, get money saved to buy a new car and to pay the difference of this car that you're in. Get that rolling, right? Get the car situation done and give yourself five months to do that. Say, you know, by, by July or whatever it is, right. Have a time frame. Say by July my car is going to be sold. I'm going to have enough money saved up to, to do the difference and buy a crappy car in the meantime and then start in August. I got a two year journey to pay off this credit card debt and cut up the credit cards. Don't go near them and really start, you know, moving forward. But if you stay on the line, Amir, we're going to give you the total money makeover book that'll walk you through the baby steps and every dollar we'll give you a year subscription. That's our budgeting app that also you can plug in all of your numbers too in that and that can help you through the process. But we are here for you. Call us back if you need us. But that's where I would start. And you're doing great. I mean, genuinely, the first step is the belief that you can do it and that you can start something new and change your habits, which making this call is that first step.

[Ken Coleman]

Deb, thank you for the call. Listen, remember this, everybody. There's ultimately only one way to financial peace, and that's to walk daily with the Prince of peace, Christ Jesus.

[Caller]

Sa.