No Amount of Debt Is Too Big for a Comeback

Summary

Podcast Summary: "No Amount of Debt Is Too Big for a Comeback" | The Ramsey Show

Release Date: July 3, 2025

Introduction

In this episode of The Ramsey Show, hosted by Ken Coleman and featuring Jade Warshaw, the team addresses a variety of callers grappling with significant debt and financial challenges. The central theme revolves around the belief that no amount of debt is insurmountable with the right strategies and mindset. Throughout the hour, Ken and Jade provide actionable advice, drawing on Dave Ramsey’s principles to help listeners regain control of their financial lives.

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1. Navigating Relationships and Financial Intentions

Caller: Josh from Augusta, Maine
Timestamp: [00:01:07] – [00:08:32]

Issue: Josh, a 25-year-old successful entrepreneur earning $130,000 annually, seeks advice on choosing a romantic partner who values him beyond his financial status. He expresses concerns about being perceived as a "meal ticket" by potential partners from less affluent backgrounds.

Discussion Highlights:

• Jade Warshaw emphasizes the importance of mutual respect and shared values in relationships, stating, “There’s nothing wrong with deciding who you spend your life with based on their personal resume” ([00:05:28]).
• Ken Coleman advises Josh to expand his social circles and rely on discernment rather than completely avoiding relationships with individuals from different financial backgrounds, mentioning, “Use your discernment and get a good group of friends who can discern on the ladies for you” ([00:08:32]).

Notable Quotes:

• Josh: “I’m looking for any sort of advice on how to select a partner who’s not remotely interested in my position in life” ([00:01:11]).
• Jade Warshaw: “You will learn about their personal resume as you meet them and decide who gets the position based on that” ([00:05:03]).

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2. Dealing with Financial Dependency and Tough Love

Caller: Michelle from Jacksonville, Florida
Timestamp: [00:10:55] – [00:20:04]

Issue: Michelle is grappling with her 35-year-old son's financial dependence. Her son owns a home with his girlfriend, who now pressures him to refinance due to his bad credit. Michelle is hesitant to co-sign the loan or buy the house outright, fearing further entanglement and potential misuse of her $40,000 investment.

Discussion Highlights:

• Ken Coleman strongly advises against co-signing or purchasing the property, emphasizing the importance of setting boundaries: “He needs to move out” ([00:12:13]).
• Jade Warshaw recommends that Michelle becomes his number one cheerleader, providing emotional support without financial dependency: “You need to be his number one cheerleader” ([00:16:53]).
• The conversation underscores the necessity of tough love and encouraging her son to take responsibility for his financial situation.

Notable Quotes:

• Michelle: “I just don’t want him to be homeless and on the side of the road with no car” ([00:12:24]).
• Ken Coleman: “He needs to be a 35-year-old man” ([00:17:03]).
• Jade Warshaw: “He needs belief from mama, not help” ([00:16:30]).

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3. Overcoming Credit Card Debt Through Lifestyle Adjustments

Caller: Chris from Columbus, Ohio
Timestamp: [00:21:49] – [00:31:17]

Issue: Chris is facing $50,000 in credit card debt accumulated after purchasing a home. Despite making strategic investments and securing a low-interest rate on his mortgage, unexpected homeownership costs forced him to rely heavily on credit cards, pushing his debt to an unsustainable level.

Discussion Highlights:

• Jade Warshaw identifies the high mortgage payment (50% of take-home pay) as the primary issue contributing to Chris’s debt: “Your mortgage should be no more than 25% of your take-home” ([00:24:21]).
• Ken Coleman and Jade Warshaw encourage cutting up credit cards to break the cycle of debt, emphasizing that immediate action is necessary to prevent further financial strain.
• The segment concludes with a live demonstration where Chris cuts up his Chase Visa, symbolizing his commitment to eliminating credit card debt ([00:29:35]).

Notable Quotes:

• Chris: “I'm about 50,000 in credit card debt” ([00:21:59]).
• Jade Warshaw: “You cannot solve a problem while simultaneously creating it” ([00:28:43]).
• Ken Coleman: “Roll this over in your mind, Chris, you cannot solve a problem while simultaneously creating it” ([00:28:43]).

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4. Balancing Early Investing with Debt Repayment

Caller: Matthew from Houston, Texas
Timestamp: [00:32:53] – [00:42:16]

Issue: Matthew, a 25-year-old career salesman earning $400,000, is navigating the balance between investing early in life and paying off his recently acquired mortgage. He seeks guidance on prioritizing his financial goals.

Discussion Highlights:

• Jade Warshaw recommends maximizing employer-sponsored 401(k) contributions, then prioritizing a Roth IRA for post-tax investing: “Invest up to that match and then go over to a Roth IRA” ([00:34:34]).
• Upon running investment projections, Jade illustrates the power of compound interest, showing Matthew that early investing can lead to substantial wealth by retirement ([00:38:10] – [00:40:21]).
• Ken Coleman reinforces the integrated approach of simultaneously investing and paying off the mortgage, ensuring financial growth without neglecting debt repayment.

Notable Quotes:

• Matthew: “At my age, I want to start investing early” ([00:33:55]).
• Jade Warshaw: “How intentional you’re going to be about that” ([00:35:45]).
• Ken Coleman: “It’s both, and it's not either or” ([00:40:21]).

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5. Managing Large-Scale Debt with Multiple Jobs

Caller: Michelle from Detroit, Michigan
Timestamp: [00:44:03] – [00:60:14]

Issue: Michelle is overwhelmed by $300,000 in debt, sourced primarily from business and personal loans. She manages three jobs to sustain her family but struggles to find a viable path out of her financial predicament.

Discussion Highlights:

• Ken Coleman emphasizes the importance of not co-signing for further debts and encourages Michelle to seek alternative income sources.
• Jade Warshaw advises Michelle to be the primary disciplinarian, cutting off further financial assistance to prevent exacerbating her debt situation.
• The conversation highlights the psychological burden of financial dependency and the necessity of setting firm boundaries to achieve financial freedom.

Notable Quotes:

• Michelle: “I have $300,000 worth of debt and I just, I can't see a way out” ([00:44:00]).
• Ken Coleman: “He needs to make more than 60,000, and he's just got to get his life together” ([00:18:41]).
• Jade Warshaw: “He needs to just let this guy do what he's gonna do and all you can do is pray” ([00:16:16]).

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6. Optimizing Life Insurance for Comprehensive Coverage

Caller: Alyssa from Green Bay, Wisconsin
Timestamp: [00:66:13] – [00:75:00]

Issue: Alyssa and her husband are debating the appropriate amount of life insurance coverage. While both have $500,000 policies, Alyssa believes they need coverage equivalent to 10-12 times their annual income, whereas her husband views the current coverage as sufficient.

Discussion Highlights:

• Jade Warshaw and Ken Coleman advocate for higher life insurance coverage to ensure comprehensive financial protection for dependents, emphasizing the long-term benefits of adequate coverage.
• The advisors recommend negotiating with her husband by highlighting the relatively low cost of increasing coverage: “I did a quote on just mine for another $500 because that would put me at a million” ([00:71:18]).
• They stress the importance of approaching insurance as a critical component of financial planning, not merely an expense.

Notable Quotes:

• Alyssa: “We both right now have 500,000 on each of us. And he is completely fine with that” ([00:66:35]).
• Jade Warshaw: “Spend Sparky, Marky, Mark, Biff, whatever your name is to spend the extra 17 a month” ([00:74:11]).
• Ken Coleman: “I'm not joking around. We're talking about real 17 a month” ([00:74:05]).

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7. Exploring Alternative Investments: Farmland Leasing

Caller: Paul from Edmonton, Alberta
Timestamp: [00:87:06] – [00:94:43]

Issue: Paul, earning $37,000 annually, considers investing in farmland to lease to farmers as an additional income source. He seeks validation and advice on the viability of this investment.

Discussion Highlights:

• Jade Warshaw cautions against ventures that may not align with Paul’s passion or financial capability, emphasizing the need for due diligence: “Know what the risks are, know what the upside is” ([00:120:04]).
• Ken Coleman underscores the importance of thoroughly researching and understanding the investment before committing funds.
• The advisors recommend leveraging Dave Ramsey’s trusted professionals for personalized investment guidance and suggest starting with more conventional investment strategies before venturing into specialized areas like farmland.

Notable Quotes:

• Paul: “Is it worthy and a worthy investment to purchase some farmland and then lease it to farmers” ([00:87:19]).
• Jade Warshaw: “So there's no such thing as passive income” ([00:120:24]).
• Ken Coleman: “It's a game changer because you will now know where your money is going” ([00:116:13]).

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8. Providing Financial Advice to Family and Friends

Caller: Andrew from Indianapolis, Indiana
Timestamp: [00:111:17] – [00:126:06]

Issue: Andrew seeks guidance on advising his mother-in-law, who has incurred $75,000 in debt through credit cards to cover her daughter’s expenses. He contemplates taking out a personal loan to pay off her debt but is concerned about the morality and potential fallout.

Discussion Highlights:

• Ken Coleman and Jade Warshaw advise treating the debt as a private loan, maintaining clear records, and establishing accountability to prevent future financial strain.
• They emphasize the importance of setting boundaries and ensuring that financial assistance does not lead to ongoing dependency or manipulation.

Notable Quotes:

• Andrew: “I have to say, you guys are just awesome” ([00:123:19]).
• Jade Warshaw: “You need to stay far from this conversation and let her speak for both of you” ([00:125:37]).
• Ken Coleman: “He needs to realize the gig is up” ([00:120:42]).

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9. Supporting Homeschooling and Debt Repayment Priorities

Caller: Peter from Denver, Colorado
Timestamp: [00:126:13] – [01:126:06]

Issue: Peter, a 35-year-old carpenter and part-time cleanup worker, seeks advice on balancing debt repayment while maintaining family responsibilities. He pays $3,000 monthly on a minivan used for business purposes and is considering replacing it to reduce expenses.

Discussion Highlights:

• Jade Warshaw recommends settling the minivan debt by obtaining a more affordable vehicle and negotiating with creditors to reduce payment amounts, thereby freeing up monthly cash flow.
• Ken Coleman emphasizes reorganizing priorities to eliminate high-interest debts, reinforcing the importance of living within one’s means to achieve financial stability.

Notable Quotes:

• Peter: “I’m 35 and I’m just kind of like stuck” ([00:126:13]).
• Jade Warshaw: “You need to find something that’s more along the 1400, 1300 dollar area so that it's not squeezing you so much” ([00:140:35]).

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10. Addressing Impulse Spending and Credit Card Management

Caller: Various
Timestamp: [Throughout Episode]

Issue: Multiple callers struggle with impulse spending, leading to escalating credit card debt. The show emphasizes the importance of budgeting, cutting up credit cards, and finding alternative income sources to break the debt cycle.

Discussion Highlights:

• Jade Warshaw illustrates the necessity of stopping the use of credit cards to prevent ongoing debt accumulation: “And so the way you stop the crazy cycle is you say, I'm not going to keep contributing to this problem” ([00:28:43]).
• Ken Coleman employs humor and live action to motivate callers to take immediate steps toward financial liberation by cutting up their credit cards during the show.

Notable Quotes:

• Jade Warshaw: “You have to have some extra judgment and discernment there” ([00:04:22]).
• Ken Coleman: “Cut it. Stop talking and cut it” ([00:30:07]).

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Conclusion

Throughout the episode, Ken Coleman and Jade Warshaw provide compassionate yet firm advice to listeners facing diverse financial challenges. From managing personal debts and safeguarding relationships to optimizing life insurance and exploring investment opportunities, the show reiterates that with disciplined budgeting, strategic planning, and the courage to make tough decisions, no amount of debt is too daunting for a comeback. The hosts empower listeners to take control of their financial destinies, reinforcing the Ramsey Show’s mission to help individuals build wealth and lead financially secure lives.

Final Notable Quote:

• Ken Coleman: “We love you guys. This is your show. This is the Ramsey Show.” ([00:85:47]).

Transcript

[Announcer]

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

[Ken Coleman]

This is the Ramsey Show. America, thrilled to have you with us. This is where we help you win with your money, win in your work and win in your relationships. The phone number to jump in is 888-825-522-58882552 number alongside the incomparable, the fabulous Jade Warshaw. I am Ken Coleman and we're here to coach you up today. So we got those money questions, got some work related questions. Hey, I need some more income. I like helping people make mo money.

[Jade Warshaw]

Mo money.

[Ken Coleman]

Mo money. And by the way, if you're at the Ramsey show and we help you make mo money, it doesn't come with mo problems.

[Jade Warshaw]

It better not.

[Ken Coleman]

Not here.

[Jade Warshaw]

Yeah, we have the good kind of mo money.

[Ken Coleman]

That's right. So let's get right to it. Josh is going to start us off in Augusta, Maine. Josh, how can we help today?

[Caller]

So I've got a bit of a strange problem here.

[Jade Warshaw]

Perfect.

[Ken Coleman]

Jade loves strange problems.

[Jade Warshaw]

I love weird problems.

[Caller]

Perfect. It might not sound so strange once I explain it. I'm 25 years old. I own my own home. I built a construction company. I make about 130,000 a year. And I've got a real proclivity for building my income, building my business, building my personal wealth over time.

[Jade Warshaw]

Great.

[Caller]

And one of the things I'm really struggling with and I'm looking for a non biased opinion because you know how friends are, they're great, but you know, you can only get so much. I'm looking for any sort of advice on how to select a partner who's not remotely interested in my position in life. When you say have a lot of.

[Jade Warshaw]

Are you talking about business partner or romantic partner?

[Ken Coleman]

Romantic partner got you your position in life.

[Caller]

I mean, just at 25, I'm doing fairly well.

[Jade Warshaw]

Tell us what that means. What's your net worth?

[Caller]

Net worth? Like are you saying if I my business net worth or if I were to liquidate.

[Ken Coleman]

You don't have that much, my friend. You just can't answer that question. I. Listen, I appreciate where you're at, young man. You said, you said you're 25 and you have a proclivity. Great word, by the way.

[Jade Warshaw]

Yeah, wonderful vocabulary.

[Ken Coleman]

I'm a big fan of proclivity. Just used it twice there because I like the way it sounds to make a lot of money and all this because, no, we don't know that you're 25. I appreciate your confidence, but if the question Is how do I make sure I find a girlfriend who's not into me for my position in life? I go, well, I don't know that I want to find a woman who's not interested in my position because that position in life, the way I'm hearing that is you got to provide position leads to provision. Jade, come on.

[Jade Warshaw]

Okay, Ken, you're right. And so, I mean, yeah.

[Ken Coleman]

You're not in a place, my friend, where you're worried about gold diggers unless you're hanging out in the trailer park. Are you dating women that are in poverty situations?

[Caller]

I try not to, but they. They pop up.

[Ken Coleman]

Well, okay, so listen. This is good. Listen, don't listen. If a. If you are dating. I got to be very careful how I say this, but I'm going to.

[Jade Warshaw]

Answer the goal, Ken.

[Ken Coleman]

I got you here to correct me.

[Jade Warshaw]

But maybe I gotta say it.

[Ken Coleman]

No, let me say it.

[Jade Warshaw]

Okay.

[Ken Coleman]

If I'm trying to. I gotta. I'm. I'm channeling Stacy right now to make sure my wife is right beside me. And I'm thinking, what would Stacy want me to say? Okay. Because she's a good woman. If a woman who is in poverty pops up into your dating life, I don't have a problem with that. People deserve dignity. And there's lots of great women and, and lovely women and lovely men who come from poverty. So I'm not saying cancel it out. However, if a person from poverty pops up in your dating life, as you begin to date them, you should have some discernment there to go. Am I a ticket out?

[Jade Warshaw]

Yeah. Or.

[Ken Coleman]

And so you just have to have some extra judgment and discernment there. I wouldn't cancel them out, but at the same time, I wouldn't necessarily be, you know, hanging out in those areas either. So I'm trying to walk the fence there.

[Jade Warshaw]

I think it's.

[Ken Coleman]

I just think this is a problem he doesn't need to be worried about.

[Jade Warshaw]

I don't think it is a problem. I think it goes both way ways, the same way you are. All that stuff matters to your point, your station in life, your work ethic, what you're accomplishing. That's part of the resume. Yeah, you know, the, the personal resume. And so the same way that you have built a personal resume that people will learn about as they get to meet you, you will learn about their personal resume as you meet them and learn about them, and you get to decide who gets the position based off of their personal resume. And so there's nothing wrong with that. You opened up the call, talking about this was a stranger, weird problem. And I don't think it's strange at all. I think it's just part of everyday life when you meet somebody and you get to decide, okay, is this person going to be somebody that I'm going to be friends with or is this person going to be somebody that I date long term?

[Ken Coleman]

Have you had a lady. You said that this has popped up a few times. So have you had someone that has come from extreme poverty, that has dated you and you felt like they were only dating you because you were a meal ticket out?

[Caller]

Yes, it's happened to me more than once.

[Ken Coleman]

How do you. How did you know? Tell us. Be very specific. How did you know? When did you know that she was only after you for your money?

[Caller]

It happened a couple of months, about three months in. I noticed at first she was very big. On balance, as far as our personal time and psychological investments, you know, we're able to talk and work things and figure stuff out between us as people.

[Jade Warshaw]

Okay.

[Caller]

But as time goes on, it turns more into what kind of life you can provide for me and my future children. And. And there's no reciprocation besides physical, which to me is, you know, it's got a value. But.

[Jade Warshaw]

I'm not gonna lie. I'm not sure I understand. And I want to understand.

[Ken Coleman]

I agree. You're not being specific enough.

[Jade Warshaw]

There's part of it that. I think it is part of the conversation. Maybe. Maybe, and I don't know, you were there, I was not there. Maybe she's saying, hey, here's what I'm looking for in life. I. These are. These are what I consider. Consider gender roles. I would love to be in a relationship where maybe the guy works, maybe I stay at home with the kids. She could just be sharing that. That's something that she's looking for. Am I. Did I miss it, or.

[Ken Coleman]

I think she's right, Josh. Did she say, I want you to buy me this and buy me that? And, I mean, was it very obvious, or is this just a young lady talking about what life might look like?

[Caller]

In separate instances, it's been both.

[Ken Coleman]

Well, you're worried about stuff you shouldn't be worried about. On that, let me. Let me put this way, Jade. When you and Sam got serious.

[Jade Warshaw]

You don't want to ask me this.

[Ken Coleman]

Yes, I do. What were you thinking? Like, what were you. What were you wondering about? Sam?

[Jade Warshaw]

My exact words were. You gotta come correct. Those were my exact words. Meaning I. I have a high standard of work. Ethic and what we both do.

[Ken Coleman]

Did you ask him about his professional future and what he thought he was gonna do with his life?

[Jade Warshaw]

I could see it. Okay.

[Ken Coleman]

But my point is, you were interested.

[Jade Warshaw]

I was interested. I'm like, listen, I'm a go getter. You're a go getter. Like we, everything we do, we do 100. Like, that was the standard. It's like if you, if you're going to be around me, you got to come correct because I'm an intense person.

[Ken Coleman]

Yeah.

[Jade Warshaw]

And so that was that on that.

[Ken Coleman]

All right. So, so, all right, I'm putting Josh on hold here. I, I said what I said, what are your, what's your dating. I think he needs to be in better pools.

[Jade Warshaw]

He probably needs to be in better pools. I also think that I, and I don't say this to be. There's no salt or shade on this. I do think that he's viewing himself in a light that's a little bit. Oh, he's puffy.

[Ken Coleman]

Oh, 100%.

[Jade Warshaw]

And so I think that if he just kind of chills a little bit. Yeah, everybody's not after him. You're doing well, but you've not.

[Ken Coleman]

Like, you don't have a proclivity to build wealth yet. You're 25. Can I just say that?

[Jade Warshaw]

Yes.

[Ken Coleman]

I mean, come on, man. So you're doing well, but relax. Yeah, relax. Use your discernment and get a good group of friends who can discern on the ladies for you. That always helps. This is the Ramsey Show. We'll be right back.

[Announcer]

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[Caller]

Foreign.

[Ken Coleman]

Welcome back to THE Ramsey Show. Ken Coleman and Jade Warshaw helping you through this hour. 8888-2552-2582-2588-255225. Michelle is joining us now in Jacksonville, Florida. Michelle, how can we help?

[Michelle]

Well, I have an adult son who's in a situation where he has a house with his girlfriend and they have a good interest rate and a really good payment. They broke up and so she wants him to refinance the house in his name and he has bad Credit. I put 40,000 down on the house for them and he wants me to either help him to get the house by co signing for it or for me just to buy it outright and then he rents from me. But I've been helping him his whole life and he's like 35 and I just don't know. I'm a widow and I don't know when to say. I guess he has a history of mental illness and of substance abuse. So I'm kind of.

[Ken Coleman]

You're scared.

[Michelle]

He feeling like I should? Yes, I'm scared. He finally got a good job, really good job, and he. But he can't manage his money.

[Jade Warshaw]

Yeah. Well, don't buy this house for him.

[Ken Coleman]

Do not, do not put yourself in this situation. But I also, I understand you're scared, but I think this is the moment where he's looking to you for direction anyway. If he's got a really good job, you're just going to have to sit down with him and be okay to let him know that why you're not doing it and what his real options are. And the two of these, these two young people are on the, well, they're not even that young, for heaven's sakes. They're on the, the home. Both of their names are on the home.

[Michelle]

Both of their names are on the deed, but only his girlfriend's name is on the loan. So she's suing him to make, force him to refinance the house or move out. And he can't. He doesn't have the credit to refinance.

[Ken Coleman]

Well, then it's a really clear decision. He moves out. Yeah, he moves out.

[Michelle]

He said.

[Jade Warshaw]

Yeah.

[Michelle]

I'm just so scared. This is his only chance in life to own a house.

[Ken Coleman]

No, no, no, no, no, no.

[Jade Warshaw]

Of Course it's not.

[Ken Coleman]

What is the evidence that, that, that this is the only time he could ever own a home?

[Michelle]

Well, he, he, he makes about 60,000 a year and they each pay half of the mortgage payment, so they each pay 750. And he says he can't afford child support. They have a child together. He can't afford a mortgage payment. He can't afford a new car. His car is about to die on the side of the road. He wants me to co sign for a car too. Credit card is max. No money in savings. But I don't want him to be homeless and on the side of the road with no car. And I just have fears.

[Ken Coleman]

I get it.

[Michelle]

He's not here to lay my fears.

[Ken Coleman]

Well, there's so many other options though. You're choosing options that put burden on you. And you called because quite frankly, you're exhausted at the idea of doing this. The very idea of doing this is exhausting and it's probably equal parts scary. And the only reason you're even considering this and not saying hard pass immediately is because you're worried about your boy. He's had a lot of struggles and you feel like. But I got to tell you, I think this is a blessing in disguise. He's got a new job, a good paying job. Sounds like there might be some growth opportunity. They break up.

[Michelle]

Yeah.

[Ken Coleman]

He needs to get out of this house because it's the only shot he's got to be able to afford the child support because he didn't have any shot on that. The judge is going to decide that.

[Michelle]

But he says that rent is higher than his mortgage payment.

[Ken Coleman]

Not if he's. Not if he's sharing. No, not if he's renting with one or two other guys that are single. And believe me, there's plenty of those in Jacksonville, Florida. This is where you can mama him in the sense of showing him adult options and saying, one of the options that you don't have is me. So here are the other options.

[Michelle]

Yeah. He's even down to saying he can't.

[Caller]

Afford to move the stuff out of his house or forward a rental like a storage unit.

[Ken Coleman]

I wish he was on the phone because I know this guy needs a. He needs a good sip of grown up juice.

[Jade Warshaw]

Did you say that you put the 40,000 down for this house? That the girlfriend basically has the right of ownership to.

[Michelle]

Well, they each have a 5050 ownership share. And he was living at my house in the basement paying no rent and he had trashed my basement because he was on substances at that time. So I honestly just wanted him out. And for my peace of mind, I put down, I put down 40,000. Yeah. And it was in 20. 22.

[Jade Warshaw]

Mm. Then you're not getting that money back.

[Michelle]

No. And that's why he held that over my head and said, I hate to see you lose your 40,000. Let's refinance this together.

[Ken Coleman]

Now he's pissing me off. I felt a little bad for him, but. But now this is a kid who's manipulating you. And you know why he's doing it?

[Caller]

No.

[Ken Coleman]

Because it works.

[Michelle]

Yeah, it always has worked. I operate on guilt a lot.

[Ken Coleman]

Today's the day. 35 year old boy needs to understand it's time to be a 35 year old man. And the best way he's going to do that is you have to look at him and go, by the way, I'd be okay being really raw and sharing your emotion. Share with him why you've done this in the past because of guilt. And now you've got to earn this and go, I can't do it anymore. I can't. It's not good for me and it's not good for you. And I know deep down you don't want me to hurt me. I don't know, Jade. I, I, I don't have anything but tough love here.

[Jade Warshaw]

What do you, I, I have nothing but tough love. I'm holding my tongue. My son is young and, and you're further along in life than I am. And so there's part of me that just wants to wallop this dude. But I also understand that there's, you know, like there's motherly love here. And so I, I get that. I can understand that there's this pool that you probably have to want to get involved, but I also feel like you can't. Like you gotta just let this guy do what he's gonna do and all you can do is pray and, and you know, you know what he needs.

[Ken Coleman]

Michelle, I'm gonna, I'm gonna tell you the one thing I think you can and should do in this situation. We've already told you what not to do. I think he needs belief from mama, not help.

[Michelle]

Oh, that is probably something I've never really offered. That's true. Because I'm always operating on fear and.

[Caller]

Guilt, by the way.

[Ken Coleman]

And by the way you have. And listen to me, Michelle. I say this, I say this with a father's heart and I say this from my own experience. He needs belief no more help.

[Michelle]

Yeah.

[Ken Coleman]

You need to sit down with him and tell him what he should do and show him that he can do it. And then you need to walk away, and you need to be his number one.

[Michelle]

Thanks for taking my call.

[Ken Coleman]

You bet. I think you need to be his number one cheerleader.

[Jade Warshaw]

I love that, Ken. Oh, that's so good. It's so good. It's tough. I.

[Ken Coleman]

You know, it's so hard because we want to help our kids. My goodness. I mean, I. It's just so hard. I get it. I truly get it.

[Jade Warshaw]

Yeah.

[Ken Coleman]

But at this point, I mean. And that's the rub, right? He's 35. He's not a boy.

[Jade Warshaw]

I honestly think when it comes to this house, I think they just need to sell it. I was gonna get whatever the profit is, give it back to mama. She's the one that put the money down to begin with.

[Ken Coleman]

I was gonna ask you. But see, you get the girlfriend involved, and her name's on it, so she gets all the dough.

[Jade Warshaw]

She's on it. Yeah. They need to get a lawyer involved that this was broke. This is what. Yeah, but mama does. Mom is already. If she wants her money back, if she cares anything. She might not care. She might be like, I wash my hands of this situation. I'm out. Yeah, but if she's like, man, I'd love to get my 40, 000 back. I'd love to, you know, talk to. Talk to somebody to see how. How this happens.

[Ken Coleman]

Because I just don't want her racking up 10 grand in legal fees, and that's. That doesn't take long. But I. I like what you're saying, but I. I think this is the get out of jail free card for this guy. I wish we had him on the phone and say, you got. I know you guys broke up, sucks. I know you got a kid, but.

[Jade Warshaw]

The girlfriend's going to want his name off the deed. I'm not right. I'm not exactly sure what the process for that.

[Ken Coleman]

The best process for him to start over.

[Jade Warshaw]

Yeah.

[Ken Coleman]

Meaning he's already got the breakup 100%. He's got a good job. Yeah, but I don't buy this. Rent is so expensive. He's manipulating there.

[Jade Warshaw]

He's manipulating.

[Ken Coleman]

He's got child support coming staring him in the face.

[Jade Warshaw]

Jay, he's got a lot. He needs to make more than 60,000, and he's just got to get his life together.

[Ken Coleman]

Yeah, he's gonna grow.

[Jade Warshaw]

My guy's got. He's got.

[Ken Coleman]

By the way, Jade, I'm gonna give it to You. We got about a minute and a half. I think this is a great time for new listeners and viewers that come in all the time. I want you to tell them why this call is exhibit A on why we shouldn't buy a house with somebody.

[Jade Warshaw]

We'Re not married to because there's no clear rights. Like. Like I said with this, it's like, okay, both their names on the deed. One name's on the title. Mom, put the money down. Like, there's such a tangled web here, and it's going to take a lot to until. That's why I said I. If I was mom and I wanted to see about this. It's like, now you got to involve a lawyer in a different sort of way. There's no clear division of. Of assets. And so that. This is just what is known as a hot, steaming pile, Ken. That's what this is. And so it's. It's not don't play house. Don't play. I haven't heard that in a long time.

[Ken Coleman]

That's what this is.

[Jade Warshaw]

I know, but that's how I know your Dad's a preacher.

[Ken Coleman]

Oh, 100. That's true. It's true. I can't get it.

[Caller]

You.

[Ken Coleman]

You can take the preacher's kid out of the church. You take the church out of the preacher's kid. Right? But, you know, that's what happened here. We love each other. Let's go in and do this house and now look at it.

[Jade Warshaw]

You know what? They would benefit from some counseling, too. They really would. The two of them, mom and son together. Mom on his own. On her own son.

[Ken Coleman]

I just saw flashes of a reality show where you're coming in and telling these two, get your own stuff fixed and just love each other and get married and not get this nonsense over with.

[Jade Warshaw]

I'm not a counselor, but I can send them to better help, and they can help him out. I think his mama.

[Ken Coleman]

I think you could be a matchmaker.

[Jade Warshaw]

You think I could.

[Ken Coleman]

Sit down and be quiet. Let Jake fix this. Sit down.

[Jade Warshaw]

Act like you got some home training.

[Ken Coleman]

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[Caller]

Foreign.

[Ken Coleman]

Welcome back to the Ramsey show where we help you win with your money, winning your work and winning your relationships. I'm Ken Coleman. Jade Warshaw is with me. 888. 825-5225 is the phone number to jump in. Let's get back to the phones. Chris is there in Columbus, Ohio. Chris, how can we help today?

[Caller]

Hi, there. How you guys doing today?

[Ken Coleman]

We're doing great. What's. What's going on?

[Caller]

Well, straight to the point. I got into some credit card debts.

[Ken Coleman]

How much?

[Caller]

I'm about 50,000. 50,000.

[Jade Warshaw]

Oh, yeah? Yeah.

[Ken Coleman]

What happened?

[Jade Warshaw]

Yeah, that's a lot.

[Caller]

It is. So. All right. About 20, 21, I bought a house, went into it having a little bit of credit card debt when what I didn't realize is when buying a house, there's stuff that need help. It's, you know, I went in like, you know, maybe $8,000 in credit card debt and had it sitting on a 0% balance transfer. You know, I wasn't that worried. Great. I still think the house was a good investment. We got in sub 3% on the interest rate and values gone up by like 25%. But the cost of ownership, the cost of owning the house, a lot of times that just fell to the credit cards.

[Jade Warshaw]

Yeah.

[Ken Coleman]

Was that because. So the question I have is that because you didn't have any margin in your paycheck when it came to everything else. And so any kind of house repairs or all that was just a squeeze on you, or was it because you had a new house and you're all excited and you guys wanted to start doing some projects and you didn't have the cash for it, so you thought, well, we'll just put it on the card. Was it that. Some of both. What were we talking about?

[Caller]

Little. Little bit of both. I mean, so, you know, I got, I got young boys. They are, when we moved in here, they were 8 and 6, and, man, that's really the perfect time to build a tree house in the backyard. So, you know, get where that went. That went to the credit card.

[Jade Warshaw]

Okay.

[Caller]

You know, we got, we got a half bath downstairs, and I'm pretty handy I can do a lot of stuff myself.

[Jade Warshaw]

Well, what percentage of your, what do you take home every month? What's your take home pay between you and your wife?

[Caller]

So I'm making about 100 a year. And that's just because of a new position that I've taken this year. Last year, and when I bought the house, I was making about 85.

[Jade Warshaw]

And what's your take home pay? What do you see on your check every month?

[Caller]

Let's see, I make 13 and change every week.

[Jade Warshaw]

Every week? 1300?

[Caller]

Yes.

[Jade Warshaw]

Okay, and then what percent, how much is your mortgage?

[Caller]

2400 with taxes.

[Ken Coleman]

Okay, so 5200.

[Jade Warshaw]

Yeah.

[Ken Coleman]

Wow.

[Jade Warshaw]

So that, that's, that's a little bit. Tell me again. I'm sorry, Ken said something. Tell me again the what your mortgage is every month?

[Caller]

2400.

[Jade Warshaw]

2400. Okay. I think that's where some of the problem is because you're getting really close to that being half of your take home pay.

[Caller]

Yeah, it very much is.

[Jade Warshaw]

And so I, that's, that's where we get into this because, I mean, think about it like this. And I don't think people take enough time to think about these ratios. We say, all right, your, your mortgage should be no more than 25% of your take home. So there's 25 there. If you're a giving person, you're probably doing around 10% there. And then when it comes time to do your investing, you're doing 15% there. That's 50% right there. So if you mess around and your mortgage creeps up 25 more points, you're at 75% of your income and you haven't even done anything yet. So, yeah, no wonder you would be going to credit cards, right? Because you haven't even bought groceries. You hadn't, you know, taken a vacation. You've done nothing. So I think that what's really, really squeezing you is the mortgage. That's probably thing one. And then if you're not on a really tight budget, then this money just disappears. Are you guys doing an every dollar budget?

[Caller]

We're very good about budget. You know, we're both emotional people and so occasionally do have some impulse purchases that take us outside of that budget. And you're aware of it creeping up. We're getting a lot. Oh, yeah, yeah.

[Jade Warshaw]

Okay. So what it might be for you guys. Okay, so. But that's not sustainable. So what it might be for you guys? It's one of two things. The first thing is if we know that we're on a tight budget, and we knowingly say, we can't afford this, but we're gonna put on the credit card.

[Michelle]

We're gonna put on the credit card.

[Jade Warshaw]

You know we're gonna do that. So you've decided that. And so for that reason, then you need to say, okay, this is a habit we have, and it's not working for us. Let's cut up the credit card. That way, when that sneaky feeling of let's build a tree house sneaks up, you can't put it on a credit card because you ain't got a credit card. Right. So let's take the cookies off the shelf so you're not tempted by them, and then you're forced to stick to your budget. And then what will happen is you'll go, man, I'm just. I'm not happy with something, with our lifestyle. We want more money. And then your creative brain will kick in. You'll go, okay, what can we do to bring up our income? And you won't be dependent on these credit cards anymore.

[Ken Coleman]

I think you should cut your card up right now on the air. Hey. Oh, we got it. Did you hear the chuckle? That was the respectful chuckle.

[Jade Warshaw]

It's an uncomfortable laugh.

[Caller]

Which credit card I'll take.

[Ken Coleman]

Do all of them. Cut them right now.

[Caller]

Yeah, I know. Yeah. You know what? I would honestly. We've stopped using them. I used to be in the habit of, you know, we put everything on the credit card and we pay it off, but you know, just a couple of those times where it is leaked beyond where we were able fully pay it off.

[Jade Warshaw]

Chris, you're not ready.

[Ken Coleman]

He's not ready.

[Jade Warshaw]

Chris, you're not ready. But you got to get you. Here's the problem. I don't think you've hit. I don't think you're ready. Yeah, I don't think you've hit that moment.

[Ken Coleman]

10 more grand. Should he charge 10 more grand? Let's get it to 60 grand. What's going to make you miserable?

[Jade Warshaw]

Enough's going to have to make you so uncomfortable with these things that you're like, no more. That's what we ken. That is what we find on this show.

[Ken Coleman]

I agree 100%. You're not there.

[Jade Warshaw]

You're not there.

[Ken Coleman]

You called us. What? So what is the reason for calling?

[Caller]

I'm feeling pretty close.

[Ken Coleman]

What's the reason for calling?

[Caller]

So my question is dealing with the credit card debt. I feel like I've got three.

[Ken Coleman]

Well, we just told you so. We got to stop using them first. Then we pay it down.

[Jade Warshaw]

Roll this over in your mind, Chris, roll this over in your mind. You cannot solve a problem while simultaneously creating it. So as long as you have these credit cards, you're creating the problem so you'll never solve it. It's infinite. It's the cat chasing its tail, dog chasing its tail. So you have to stop the crazy cycle. And the way you stop the crazy cycle is you say, I'm not going to keep contributing to this problem. I'm not going to keep adding to the pile. I'm going to stop it. Turn off the faucet, then you can clean up the mess.

[Caller]

Yes, absolutely.

[Jade Warshaw]

And so what?

[Caller]

Ken and I were not that point. And that's kind of why I'm calling.

[Jade Warshaw]

Then you gotta cut those bad boys up. Snap them up. Yeah, put him through the little dude.

[Caller]

I'll cut them up right now.

[Michelle]

There we go.

[Ken Coleman]

Because you guys got an impulse problem.

[Jade Warshaw]

Yeah.

[Ken Coleman]

And you just said that. Those are your words. You got them right now. We got. We got about a minute and a half. You got them on you?

[Caller]

Yeah.

[Ken Coleman]

You got it.

[Caller]

You want to cut a card? Let's go to town.

[Jade Warshaw]

Yeah, do it. Do it. And you're gonna be in the fetal position later today. You're gonna maybe sob in the shower because you're gonna realize, oh, my gosh. I. This. This was a security blanket.

[Ken Coleman]

All right, so you got some scissors? Do we need. Okay, this. Tell everybody what's happening right now. Describe what's happening. We got to make this exciting.

[Caller]

Oh, should I use names? Okay, which one do we got here?

[Jade Warshaw]

Hold it up. Tell us what it's called.

[Caller]

Chase Visa.

[Ken Coleman]

Hold it near the phone so we can hear it.

[Caller]

Okay, hold on.

[Ken Coleman]

Chase. This is a Chase Visa.

[Caller]

Let's see if you can hear that. Yeah. Oh, you catch it?

[Ken Coleman]

We heard. We heard the card. Yeah, we heard. We heard the exhale.

[Jade Warshaw]

Are you sure you weren't giving yourself a haircut? That was. Sounded like barber scissors.

[Ken Coleman]

So we. We got to. We got to go. We got about 45 seconds. What are you. What's next?

[Caller]

Options for getting at the credit card? I don't want to do something stupid, but, I mean, with these, they're charging 30%.

[Ken Coleman]

Cut it. Stop talking and cut it.

[Caller]

What are you.

[Ken Coleman]

Cut it.

[Caller]

Oh, I'll cut another one. Come on, man.

[Ken Coleman]

What?

[Jade Warshaw]

Got it.

[Ken Coleman]

Which one are you cutting? Tell us quick.

[Caller]

Hold on. City guard.

[Ken Coleman]

City card. Go.

[Jade Warshaw]

Yes. Out of here.

[Ken Coleman]

We won't wait for the sound. Just tell us when it's cut. Oh, yes.

[Jade Warshaw]

There it is. It's gone.

[Ken Coleman]

Do you see that's? Great. How many more you got?

[Caller]

Several. Wait till I get to the MX in the drawer.

[Ken Coleman]

Keep doing it.

[Jade Warshaw]

Keep going, Keep going.

[Ken Coleman]

Well, you know what we are? We're a cash business and we got a lot of people that need to hear these advertisements coming up. So we got to take care of business. You, my friend, need to keep cutting.

[Jade Warshaw]

Yeah, keep cutting.

[Ken Coleman]

Don't.

[Jade Warshaw]

Good job. Good job, Chris.

[Ken Coleman]

Love it. Did you hear that? Every time he cut one, he went, he went.

[Jade Warshaw]

Oh, yeah, yeah. It's painful. It's visceral. You feel it.

[Ken Coleman]

That is so fantastic. Keep cutting, Chris.

[Jade Warshaw]

Yes.

[Ken Coleman]

All right. We'll be right back. This is the Ramsey Show.

[Announcer]

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[Ken Coleman]

Welcome back to the Ramsey Show. I'm Ken Coleman and Jade Warshaw is alongside triple 882-55-5225. That's the phone number to jump in. We'd love to hear from you. Taking your money calls, your income related calls. Today, Matthew is joining us in Houston, Texas. Matthew, how can we help?

[Caller]

Hey guys, how are you today?

[Ken Coleman]

Good, how are you?

[Caller]

I'm good, thank you. So I'm 25 years old, career salesman. At the beginning of this year, I landed a new job which I've been, you know, my income has grown drastically and closing on a house at the end of the month. And I just wanted to know, you know, at my age, I want to start investing early. I also want to be debt free. Is there a balance to investing, you know, post tax dollars and paying off the home or should all of my excess cash just be going to the principal? And, you know, I, I start investing once that's paid off because, you know, at my age, the, the value of the compound interest, if I start now, I feel could really pay off down the road. So I just wanted to get your thoughts on that.

[Jade Warshaw]

Yeah, I mean, I think It's a good question to have, and I think it's a question that a lot of people have. So you just closed on this home. Let's make sure you're in the position to begin investing. Do you have three to six months of expenses saved?

[Caller]

I do.

[Jade Warshaw]

Okay, great. And then at that point you would be considered baby step four, which is you're investing 15% of your gross income every single month. Are you doing that?

[Caller]

I haven't started. Well, I contribute to my company's 401k plan, but other than that I haven't, I haven't started, which is pre tax, but I haven't started investing any post tax money yet.

[Jade Warshaw]

Okay, good. So what, what I would say is whatever you're doing now, if you have, if you have access to a match through that, that employer account, I would invest up to that match. And you said it's an after tax.

[Caller]

It'S a pre tax with my employer. So. Okay, they match 3%. I'm contributing 6% right now.

[Jade Warshaw]

Okay. So I would do up to the match and then I would go over to a Roth IRA and I would go ahead and max something like that out. And then if you still have money left in your 15 of contributions, then you could go back out and get as close to maxing out that 401k as possible. The goal here is again for you to be investing 15% of your gross income. And most people do it on a monthly basis because, you know, you can kind of set it and forget it with your employer. And so that's what I would do. And then beyond the 15%, any money that you have extra, I would put it towards the paying off of the house. And so that's the way we teach. At 25 years old, you're not married yet, you don't have any kids yet. So you can kind of forget for now about baby step five because you don't have any kids. There's no 529 that you need to really add to. And so then for you, the next step is baby step six. You're putting extra money towards the house and you get to decide how intentional you're going to be about that. Right. You don't have to go crazy like you did with the other baby steps. But you're a single guy. You could probably, you know, make a lot of headway on that. What do you owe on the house?

[Caller]

So around 4:54:60.

[Jade Warshaw]

Okay.

[Caller]

I haven't even made my first mortgage payment yet.

[Jade Warshaw]

Yeah, you said you close here. You haven't even closed yet. Right. Or you just haven't closed yet.

[Caller]

Right.

[Jade Warshaw]

Okay. Yeah. And so that's what I would advise you to do. That's what I did, and that's what I do.

[Ken Coleman]

Yeah, I'm gonna agree with you. I mean, I. I love Jay's advice. Follow it. But I just want to commend you. I. I love this.

[Jade Warshaw]

Excellent.

[Ken Coleman]

I love this mindset that you've got, man. You haven't even made the first payment yet. You're calling and going, what do I do first? You want you to be set up for the long term, and you're gonna have no problem getting rid of the house payment.

[Jade Warshaw]

And the reason I suggested you going to the Roth right after the 3% is we want that 3% match. I mean, obviously, that's free money. But then I love the Roth option for you, because on down the line, you're going to want money that you have access to that you don't have to pay taxes on and that you don't have. That required minimum distribution. And so that's why we would say that. And then come back and you can fill up that 401k when you're done.

[Ken Coleman]

What do you expect to make in the next 12 months?

[Caller]

I'd say around $400,000. Wow.

[Jade Warshaw]

My son.

[Ken Coleman]

See, I've been wanting to ask that. I had to wait. I didn't want to interrupt, but I. I was going. I had a sense that he was killing it. He had jumped into a well.

[Jade Warshaw]

When he told us the amount on the house, I was like, wait a second.

[Ken Coleman]

Yeah. Yeah. So here. Here's the only reason I asked that. Again, this is all an exclamation point to what Jade said. I can't add anything to what she said on that. With that kind of income, you're gonna be fine. You're going to be more than fine. So you'll just follow the baby steps. And with that kind of income, man, it is going to be ridiculous. Okay.

[Jade Warshaw]

Have you gotten your hands on an investment calculator?

[Caller]

I. So I was just going to mention I took a look at the amortization schedule on the loan, and that really just kind of ticked me off, you know?

[Ken Coleman]

So I want to let it tick you off. But go in order. You know what I mean? Get your investment strategy. Because. Because with that kind of income and what Jade's talking about with the investment calculator, it's one of our favorite things to do.

[Jade Warshaw]

It is.

[Ken Coleman]

Are you running some numbers?

[Jade Warshaw]

I want to run a few numbers for him.

[Ken Coleman]

He's so upset about his loan, his mortgage, his amortization payment. We need to get his mind focused on this part of the advice.

[Jade Warshaw]

Okay, so then let's play a game. How much do you already have in retirement investments? Do you have any?

[Caller]

Only maybe six or seven thousand dollars.

[Jade Warshaw]

Okay, I'll put seven thousand in there. All right? And then let's say you contribute, let's see, 60,000 a year. So let's say 5,000amonth, all right? And then we'll get you at 10. 10 rate of return. Because you make a lot of money, dude, if you don't do anything else from now until forever, like up from now until 65. Oh, actually, hold on, hold on. Yeah, I was gonna say I accidentally put in the wrong retirement age, but it's actually worth noting. I put in 48. Like, if you were to retire at 48, you'd have 5.3 million. I thought I put in. I thought I put in 65. Let's put in 65 and see what it says. If you go till 65. I'm shook.

[Ken Coleman]

Tell him the number. Now. Don't remind him what he's putting in. Every. Every. Every year.

[Jade Warshaw]

No, this is monthly. If you. If you put in 5,000amonth because you make 400,000.

[Ken Coleman]

Yeah, that's 60.

[Jade Warshaw]

That's 60,000 a year at a 10% annual rate of return. You already have 7,000 there. If you do this from age 25. You said you're 25, right? Yeah, I'm 25 until age 65.

[Ken Coleman]

You sitting down?

[Jade Warshaw]

Are you sitting down? Because I'm standing up. $31 million. 31 million. 31 million. That's crazy. I had to put my pinky.

[Ken Coleman]

Yeah.

[Jade Warshaw]

Like on Austin Powers.

[Ken Coleman]

Yeah. Yeah. So now you feel a little bit better?

[Caller]

I do. I feel a lot better. But, you know, and that's. That's really why I called you guys, because I know that, you know, if I start now, by the time I'm, you know, 65, it's going to make a huge difference.

[Ken Coleman]

And, oh, by the way, that doesn't mean you aren't paying your house off. You're still paying the house off.

[Jade Warshaw]

Yeah, we didn't even talk about that. And we didn't even talk about the fact that this is you starting. Like, this is not you at your full potential. You're still going up in the world. You're still on an upward trajectory. Man, I thought something was wrong with my calculator.

[Ken Coleman]

No, that's 15% of your income. And, oh, by the way, after you budget all that, you are now making extra payments on the house.

[Jade Warshaw]

Oh, yeah.

[Ken Coleman]

And you'll pay the house off before you know it. So this isn't an either or. It's both. And that's the point of the exercise.

[Jade Warshaw]

Matthew, I'm happy that I know you. I'm happy I got to talk on the phone to you. Hey, check back in with us. Keep letting us know how this goes, because so many people need to hear this. If you can get these things firing on all cylinders, even if you're not making 400,000 a year, if you're making 200,000 a year, what is possible when you get a hold of your finances so early is so amazing. And for anybody listening, if you've never, like, played with a. An investment calculator, I suggest we have a great one, ramseysolutions.com you can check it out, or you can just Google Ramsey investment calculator, and it'll pop up. But start playing with those numbers to see what your life can be. And, I mean, that's motivating at the very least.

[Ken Coleman]

Yeah, absolutely. Thanks for the call. I love the breakdown, Jay. That's always fun when we get into the numbers because, you know, in his mind, he's like, I got to pay that house off. I got to pay that house. It's like, no, it's both. And it's both, and it's not either or, and fun to run those numbers. And, boy, that's a staggering number.

[Jade Warshaw]

That is a staggering number. And let me just.

[Ken Coleman]

And not many people make his money.

[Jade Warshaw]

No, they don't.

[Ken Coleman]

I want to at least call it out early in life at 25, to be making 400k.

[Jade Warshaw]

No, this.

[Ken Coleman]

He's in a. He's in the top one.

[Jade Warshaw]

That's top 1%. 1%, 100%.

[Ken Coleman]

So I just want to at least call that out.

[Jade Warshaw]

But let's also. Ken, let's explain why we care so much about paying off the primary mortgage. Because at the end of the day, yes, we want you to have the compound interest, but at the end of the day, there is going to be a time where you do not work and you don't want to be making payments on a mortgage. Your mortgage is the biggest line item in your budget. You want that done and paid for by the time you're. You're. You know, that age so that you can just live.

[Ken Coleman]

Yeah, I totally, totally agree. There's a young man that's living like no one else. I promise you, he's gonna be living like no one Else and also giving like no one else at a young age. By the way, great stuff. Good hour. Jade Warshaw. All right, does it for this hour. There'll be more Ramsey show, I promise.

[Caller]

Sam.

[Michelle]

Hey, you guys. Health insurance costs are only moving one way and that way isn't down. And if higher costs aren't enough, the wait times to see your doctor are longer. And it's harder than ever to get anything approved through the bureaucracy. So if you feel like the system is working against you, try a biblically based alternative to health insurance, Christian Healthcare Ministries. CHM is a health cost sharing ministry that's helped hundreds of of thousands of families like yours take care of over $11 billion in medical bills since 1981. CHM has also helped them stay true to their values and avoid miles of red tape. And CHM support goes far beyond meeting financial needs. They also help meet spiritual needs. Members become part of a family who will pray with them and for them when they experience a medical event. So listen, y' all, there's a better way to take care of healthcare costs. CHM programs start as low as $98 a month. So learn more today and [e-mail] budget. That's chministries.org budget.

[Announcer]

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[Ken Coleman]

Welcome to the Ramsey show where we coach you to win in your life, specifically winning in your money or with your money, winning in your work and winning in your relationships. The phone number for you to get coached up today is triple 882-55-5225. I'm Ken Coleman. Jade Warshaw is with me and we're here for you. Triple 882-55-5225. We'll start it off in the Motor City, Detroit, Michigan. Sarah is on the line. Sarah, how can we help?

[Jade Warshaw]

Hello.

[Ken Coleman]

Hi, how are you?

[Michelle]

Hi.

[Caller]

Good.

[Michelle]

How are you doing?

[Ken Coleman]

Good. What can we help with?

[Michelle]

Well, first of all, thank you for taking my call. I love you guys. You guys are absolutely amazing and helped me so far. The challenge I'm facing now is I have $300,000 worth of debt and I just, I can't see a way out. I'm working three jobs and it just. It just doesn't seem to work.

[Ken Coleman]

Wow. Well, break it down for Jade here. So start off with your income through the three different jobs. Give us a range, and then walk, walk her through your debt.

[Michelle]

My salary position, I bring in 80. I'm sorry, my salary is 80. I gross, I'm sorry, I bring in 80 and then I net 55 when you take out tax insurance. And then I have a second job that I gross 40, but then I'm an independent contractor, so I have to take out taxes and stuff. So I net about 30 to 35,000.

[Jade Warshaw]

Good.

[Michelle]

And then I have another part time job that brings in about 600 bucks a month.

[Jade Warshaw]

Okay. Okay.

[Ken Coleman]

So 72 on the 85. So you're somewhere in that 92, 93 range with those numbers. Is that right? Net?

[Michelle]

Yeah. I mean that sounds amazing, but that's. Yeah, yeah.

[Ken Coleman]

But you can do something with that.

[Jade Warshaw]

Yeah.

[Ken Coleman]

Dr. Jade is in today, so it's gonna be okay.

[Jade Warshaw]

I'm gonna pretend like you didn't say that. So the debt, doctor.

[Ken Coleman]

No.

[Jade Warshaw]

Oh, okay.

[Ken Coleman]

Okay. You didn't know what I was doing.

[Jade Warshaw]

I didn't know where you were going. Sarah. Now that I know where he's going.

[Ken Coleman]

You can do surgery on this.

[Jade Warshaw]

I can help you.

[Ken Coleman]

There you go.

[Jade Warshaw]

So you're bringing in almost $8,000 a month, which ain't too shabby, but you've got $300,000 of debt, so walk us through this debt.

[Michelle]

It's all student loans.

[Jade Warshaw]

Okay. Private, Federal.

[Michelle]

I have $12,000 with private. I will have those hopefully paid off by December.

[Jade Warshaw]

Good.

[Michelle]

The rest, the 300,000 is all government.

[Ken Coleman]

What was it for? I'm just curious. I went to law school and are we practicing law?

[Michelle]

Yes.

[Ken Coleman]

And that's the. That's the. The number one amount of money you gave us. What kind of law you doing?

[Michelle]

Yeah, I do estate planning, probate stuff.

[Ken Coleman]

Gosh, it feels like we've got a path to be making a whole lot more than that. Am I right or are you feeling like you're capped out and why.

[Michelle]

No, you hit the nail on the head. I've been looking on Indeed. And stuff. And I'm. That's actually the average pay for where I live. And it's pretty. It's. It's hard to deal with because I do feel that I earn. Should earn more, but it's. It's about average.

[Jade Warshaw]

Do you. Is there anything keeping you tied to the Detroit area.

[Michelle]

Family? Yeah.

[Jade Warshaw]

Okay. Okay.

[Ken Coleman]

All right. One other silly question, Jaden, and I'll get out of the way. I. I am curious with, with what you've done so far. Is there a pivot or some type of additional legal work that you could do that would add to your income based on your current qualification or specialization?

[Michelle]

So I got my real estate license about a year and a half ago, so that's my second job.

[Ken Coleman]

Yeah, I'm Talking just the legal field right now.

[Michelle]

Well, the reason why I got a different type of job is I'm really burnout practicing law. So I'm trying to expand on other things. So that's why I got my real estate license to help bring in more money. But that's extremely part time. But I really want to try to pivot out of practicing.

[Ken Coleman]

I get it, but I'm going to. And again, I'm about ready to hand it to you, Jade.

[Jade Warshaw]

No problem.

[Ken Coleman]

But you got $300,000 in law school debt. I don't think you get to burn out yet. And I think that the greatest opportunity for you to make money is through your law, your legal work. You just don't have time to sell houses. That's a full time deal, you know, so it's either or. It's like you go all in on selling homes and if you do that, then there's no limit to what you can make. But I'm just going to make that point, you know, you got to bring in some more income here because 300,000 is doable. I'm gonna hand it over to Jade. Jade, walk her through the, the process here.

[Jade Warshaw]

Okay, so the loans, did you consolidate them or are they single? Singular?

[Michelle]

They're single.

[Jade Warshaw]

Okay, good, that's good, that's good. Okay, so as trite as this may sound, all we're doing is listing them from smallest to largest and we're paying minimum payments on all of them, hopefully. I don't know, are you enrolled in any of the assistance plans? Are you in save plan or anything like that?

[Michelle]

The income driven payment, I've been on that for about 13 years.

[Jade Warshaw]

Okay, and is it going to run out or do you still have time to be on it?

[Michelle]

I mean, honestly, I try to re enroll and it takes months and months to get an answer. So I, I don't know, I'm kind of in limbo right now.

[Jade Warshaw]

Okay, what's your current payment for the, for the lot of them?

[Michelle]

I don't pay anything.

[Jade Warshaw]

Okay, good. So here's what we do. The fact that your minimum payments are zero is a good thing for you right now because that means you can put the full strength of your income on the smallest debt and knock it out fast. I wish there was a way to tell you that, that there was an easy button here. There's just not. And if you've listened to our show for any bit of time, you know, my husband and I had 280. Okay. And at the time we weren't making what to combined what you're making now. And so there's. There's a part of this that you have to just, you know, ride that income until the. The debt is gone. You know, once you have maxed out your money for your time, and I don't know that you have yet, Ken. I agree with Ken. I think that you can do more to max out your time and get better money for it. But once you do hit that point, there is a point where you just go, okay, this is what I'm making, and this is how long it's going to take. And as I've said many times before, you got to ride that horse to the old town road, and just that's what you got to do. And then when it's done, it's done.

[Ken Coleman]

That song is going to be in my head now all day. And I'm having you to thank for that.

[Michelle]

I'm kind of like. Yeah, I'm kind of like torn because I actually make more money selling real estate in half the amount of time is my salary position. Of course, I get that paycheck every two weeks.

[Ken Coleman]

Well, what's that transition look like? Because that's what I'm getting at. Like, if you get after it and you can double, triple your income, then this is a game changer.

[Jade Warshaw]

Key, key word is consistently. If you can do that consistently, then that's a great sign to.

[Ken Coleman]

It's almost like what would have to be true for you to change your schedule, stock some money up or something to be able to then go, all right, I'm dropping one of these jobs. My gosh, you got more jobs, you know, than you. Then you know what to do with right now. So we got to create margin time wise, which means we got to have some margin money wise. Right. Jade, you tracking with me and then I'm tracking with you. What is. What would it take for her to get to a place to where she can now go all in on real estate? And that's going to take a little bit of time to build that pipeline up.

[Jade Warshaw]

Yeah. I mean, we're always looking for you to be able to replace whatever your income was at its best. Right. And if you can do that consistently with real estate, I say more power to you. The weird thing about real estate, though, is of its nature, it tends to be.

[Ken Coleman]

Yeah.

[Jade Warshaw]

Up and down.

[Ken Coleman]

Yeah. What's the market like in Detroit area?

[Michelle]

It's slow. I get. I get consistent at least mark two listings and closings. But it's a roller coaster.

[Ken Coleman]

Yeah. See, so you got it to Jade's point. We got to factor that in. The market determines what's going on in some degree. You don't just, you know, I'm going to tell you shingle and it's everybody wants to buy a house from.

[Jade Warshaw]

I'm going to tell you. When you have this kind of debt, there is something to be said for being able to count on. I know what's coming in and I know what I'm doing with it. There's just kind of that momentum line. Yeah. Assembly line that you can just. I'm cranking it out. I'm paying off the debt and this is temporary. And when the time comes, you'll do what you love.

[Ken Coleman]

Yeah. I, because of the market where it's at, I'm gonna go with Jade's, decide what you can do and lock in on it. And then if something changes, then the timeline changes. But get that, that mindset for the climb. Right. It's going to take me a while to climb this mountain, but I will get there. Appreciate the call. You got this. Stay encouraged. This is the Ramsey Show. This show is sponsored by Better Help. All right, we all know this. The world is going bananas and we're under huge pressure to perform and look like we're keeping it all together. Check this out. 76% of people globally agree that mental health care can help resolve personal problems. Yet 6 out of 10 people still believe that society discourages people from asking for help. Listen to me. Real strength, I'm talking real bravery comes from opening up about what you're dealing with and then doing something about it so you can be your best for yourself and for everyone else that you care about. If you're feeling the weight of the world, please talk to someone. Anyone. A friend, a loved one, a family member or a therapist. I see a therapist every week. If you're thinking about trying therapy, contact my friends at Better Help. BetterHelp is a hundred percent online therapy, so it's affordable and convenient for your schedule to get started. Just fill out a short online survey to get matched with a licensed therapist. And if it's not the right fit, you can switch therapists at any time. And it's easy and it doesn't cost any extra money. Talk it out with BetterHelp. Visit betterhelp.com DeLoney to get 10% off your first month. That's BetterHelp. H E L p.com DeLoney welcome back to the Ramsey Show, America, alongside Jade Warshaw. I'm Ken Coleman. The phone number for you to jump in, we'd Love to coach up today is 8888-8255-2258-8825-5225. Amy joins us now in Vancouver. Amy, how can we help today?

[Michelle]

Hi. My question is about a shared asset I have with my other adult sibling. So the asset is actually in Texas and it was given to all of us by my parents and it was, it's definitely been a blessing and it's getting to the point where there wasn't really a long term plan put in place. So it's starting to feel less like a blessing and more of a point of conflict. So me and all my siblings have lived there. It's a house. And all me and all my siblings have. Our names are on it and we have all lived there at some point while paying rent. Except my brother is now. He's been in the house for about six years and he hasn't paid rent and he's currently on leave with the military. And I tried to reach out to make a plan before he left and he didn't respond to anything. So I'm wondering how to navigate this asset and keep it a blessing while preserving our relationships.

[Ken Coleman]

How many siblings total?

[Michelle]

There's four of us.

[Ken Coleman]

And how did he get this deal? How did he just start living in when everybody else has lived in it and paid rent? I'm presuming you guys have rented it to other people as well. Is that true?

[Michelle]

I think we've rented it to one other family.

[Ken Coleman]

How did he get away with living rent free for six years?

[Michelle]

So it was kind of like on your integrity. There was an account set up and you put a certain amount in that account every month. And he decided he didn't want to use that same account. He wanted to do his own thing, which we're like, that's fine. You know, you can, you pay rent. How you.

[Jade Warshaw]

What is the rent? What is it?

[Michelle]

It's 250amonth.

[Ken Coleman]

Oh my gosh, this is a joke. And so he's not been paying it, not, not once. What do the other siblings think about this?

[Michelle]

So they think like, we would, we don't know how to resolve it. The communication is not great. They kind of want to be like, well, yeah, we'd like to talk about. They've kind of written it off as like, oh, like we're just never going to see money from that. It's just never gonna. Nothing's gonna change.

[Jade Warshaw]

How, how'd you arrive at the 250? Is that like an arbitrary amount or is that maintenance? What is that.

[Michelle]

So that was set up, like, over a decade ago. Like a long time ago, Nate. And it was. It was with the purpose of, like, oh, this is affordable, so we can live in it and save money, so we can, you know, kind of get ahead. It doesn't include, like, utilities or anything like that.

[Ken Coleman]

So all four of you are on the deed?

[Michelle]

Yes.

[Jade Warshaw]

What's it worth, the asset?

[Michelle]

Probably 200,000 at the. On the bottom side, the low side.

[Ken Coleman]

And there's no debt on it, right?

[Jade Warshaw]

No. No.

[Ken Coleman]

So do the other three siblings. I'm sorry, there's four of you, so the other two, plus you, are they all wanting to get out of this as well?

[Jade Warshaw]

Are you there?

[Michelle]

I'm sorry, I couldn't hear the end of that question. Okay, I'm here.

[Ken Coleman]

I'm asking. Do the other siblings. Are they in agreement with you about they want to get out, or are you the only one thinking, going, how do I get out of this?

[Michelle]

No, the other siblings were all in agreement.

[Jade Warshaw]

Okay.

[Ken Coleman]

Okay. Well, that helps.

[Jade Warshaw]

Majority rules.

[Ken Coleman]

So I'm going to. I don't know. So I want to say something, but I'll first say I don't know. I've never experienced this before, so.

[Jade Warshaw]

I.

[Ken Coleman]

Would be seeking counsel, actual legal counsel, on this, on what your options are when you've got four people on a deed, three want to get out. I just don't know enough legal on that. But I would say this. However this goes down, it's time for three of you to stop letting him bully you. This guy's a. This guy's a bully. And I know it's your brother. I'm just telling you like it is. He's not returning your calls. He's just acting like a school ground, like on the playground bully. I'm not going to talk to you. I'm giving you the silent treatment. I'm creating all this tension, and I'm not playing ball. I'm just creating all this. And I'm daring you. He's daring you guys to do something. And I think he's doing it because he knows you're not willing to do anything about it. And I think that's the only little thing I wanted to put in there, because I think however you resolve this, Jade, I'll get out of the way if you've got a point on this, but I think whatever needs to happen, he needs to realize the gig is up.

[Jade Warshaw]

Yeah.

[Ken Coleman]

I think you've long outstayed your welcome. You've taken advantage of us. It's over.

[Jade Warshaw]

Yeah. So just for clarity, for me. So you guys, the plan was when you live in the house, you put the $250 in the account, and that split amongst the other three siblings, right?

[Michelle]

No. So the. That amount goes just towards repairs, Like. Oh, something like breaks. You have money in the account to pay for it.

[Jade Warshaw]

And so while he's been living in the house, if something broke, what happened?

[Michelle]

I'm not sure, so. Well, he. There are things broken, and they're just not fixed.

[Jade Warshaw]

So he just didn't take care of the place while he was there either.

[Michelle]

Right.

[Jade Warshaw]

Oh, wow. Okay. So, yeah, I mean, the majority rules here. If you have to get a judge to force this, I don't think it would be that difficult to do it.

[Caller]

It.

[Jade Warshaw]

We could talk about the idea of him buying you guys out, but I don't think that's gonna happen. It's just not gonna happen. So, yeah, you might have to sit down. All of you guys sit down and try to make it light. But for me, the fact that you're calling, it's no longer light. So you can try to keep that a light conversation. But I think the longer you let this go on, the worse it gets. So to Ken's point. Yeah. I think you guys get together, somebody talked to a judge and say, how do we force this? Because we're ready to sell it. We've kept it this long, he's not paying rent. And the truth is, I kind of like the fact that he doesn't owe each of you, because, I mean, if you guys are splitting this money, truly, he'd owe each of you $6,000. But he doesn't, since he's not even taking care of the place. Although who knows if that'll affect the resale value. But I'd get out of it immediately.

[Ken Coleman]

I would, too, because if you look at the split, let's say they sell it for 200 and you get. It's less than 50 grand each.

[Jade Warshaw]

Yeah.

[Ken Coleman]

It's just not enough money to be dealing with all this garbage. So. Amy, I'm with you. I think your instincts are right. Let's get out of this thing. No messing around. It's not worth spending a bunch with a lawyer to the judge thing. Whatever. I think Jade's right. Let's clean, efficient, force his hand. We're selling this thing, and we avoid all the tension. And then Thanksgiving and Christmas takes care of itself. But, yeah, I'd get out quick. I really would. That's an unfortunate situation. I mean, when you get and see, that's okay. So I'M sitting here, and I didn't ask.

[Jade Warshaw]

Okay.

[Ken Coleman]

I've already put on hold. But, like, I didn't ask. I guess I should have. If mom and dad are still alive, I got the picture. They aren't around.

[Jade Warshaw]

I got the feeling they're not around.

[Ken Coleman]

But I just. And for that reason, I just. I sat there and I went, note to self. If Stacy and I want to bless our three kids, I need to bless them individually, not try to do a, hey, we're gonna do this asset and work the three of you into it. I just sit there and I went.

[Jade Warshaw]

Note to self, cash, money.

[Ken Coleman]

And individually.

[Jade Warshaw]

Yes.

[Ken Coleman]

You're not in it together. Yeah, I'm blessing you this way. I'm blessing you this way. This way. And it's not this, like, joint thing where there's just. It's just what. I don't see what the value is in that.

[Jade Warshaw]

It was probably the family home, is my guess. And I think. And they probably had the option to sell it early on, but they weren't ready to part with it yet. And so it probably just became. Listen, I am adding all sorts of story to this that I don't know are true. So I'm sorry If that's not TR2 agree.

[Ken Coleman]

Right. To give four kids a house. All right, you guys. Here you go. Yeah. Even if there's not a problem, it just feels like it's easy for a problem to exist, because then you have four different people, have four different views of life.

[Jade Warshaw]

Yeah.

[Ken Coleman]

Money.

[Jade Warshaw]

It's like when you get a gift card to a restaurant you don't really like. You're happy for the gift card, but now you're forced to eat at Applebee's.

[Ken Coleman]

Oh, geez. You just went there. Just a shot across the bow. I'm just saying, eating good in the neighborhood. I mean, there's a lot of people that like an Applebee's. Hey, note to self, Team. No Applebee's gift cards for Jade. That would not go over well.

[Jade Warshaw]

Yeah.

[Ken Coleman]

Where would one. Where would one get you a gift card, too?

[Jade Warshaw]

I'm with you. Asking for a friend Visa gift card.

[Ken Coleman]

No, no, I want it. I'm putting you on the spot. 20 seconds. If I'm gonna get you. Stacy and I are going to get you and Sam a gift card to a restaurant. Where do you want. Where do you want to go?

[Jade Warshaw]

And it has to be national so people know it. Okay.

[Ken Coleman]

Come on.

[Jade Warshaw]

I don't know. J. Alexander.

[Ken Coleman]

All right.

[Jade Warshaw]

Do you guys have that?

[Ken Coleman]

Yeah. Do you guys. You live here, too?

[Jade Warshaw]

You have I'm not going to lie.

[Ken Coleman]

I want you guys have that. Are you live in middle Tennessee as well?

[Jade Warshaw]

I wanted to say Red Lobster.

[Ken Coleman]

I. I don't mind that at all. I love a good lobster. All right, quick break. This is the Ramsey Show.

[Michelle]

Hey, you guys, if you're looking to save big on groceries without sacrificing quality, you've got to check out Aldi.

[Ken Coleman]

That's right, Rachel, because let's be real, I'm bougie, but I'm also frugal.

[Michelle]

So you're bougie, George.

[Ken Coleman]

Thank you for admitting it. So why pay more for the same.

[Caller]

Stuff just because it has a fancy label?

[Ken Coleman]

Aldi shoppers save up to 36% on a typical shopping trip over name brand products at other stores, which adds up to about $4,000 per year for a family of four.

[Michelle]

It's crazy.

[Jade Warshaw]

Yeah.

[Michelle]

And you know what? Their organic produce, their fresh meats, and even their private label, it's all delicious. So it's good quality stuff that's not going to bust the budget.

[Ken Coleman]

And the best part, no membership fees, no gimmicks, no headaches, just a. A simple shopping experience with the lowest prices of any national grocery store.

[Michelle]

So beautiful. Okay, so stop paying more and start shopping at Aldi. Find a store near you today at Aldi Us. That's Aldi us.

[Jade Warshaw]

You're listening to the Ramsey Show. I'm Jade Warshaw. Next to me is Ken Coleman.

[Ken Coleman]

Let's go.

[Jade Warshaw]

Selling. Author of many books, but most recently Find the Work youk're Wired to Do. Home of the Get Clear Career assessment.

[Ken Coleman]

Which is very, very great, very fun, very fun tool. And it's always good to be with you. By the way, you're a best selling author too.

[Jade Warshaw]

Yeah. Money's not a math problem. Pick it up. You can find them [e-mail] store. Get into it. Get involved. I want to get involved with these phone lines. And by the way, if you want to get involved with us, call us. The number is 888-825-5225. And we will pick up your call. Let's pick up Alicia's call. Alyssa, actually is how we're going to pronounce that. Green Bay, Wisconsin. What's going on? Alyssa, hi.

[Michelle]

Thanks so much for taking my call.

[Jade Warshaw]

Did I say it right?

[Michelle]

It's Alyssa.

[Ken Coleman]

Yeah.

[Jade Warshaw]

Okay. Yeah.

[Ken Coleman]

You did.

[Michelle]

Yeah. Thanks. So I have another insurance question for you.

[Ken Coleman]

Wow.

[Jade Warshaw]

The day of insurances. Wow. All right, hit us with.

[Michelle]

Mine's about life insurance. So my husband and I were actually in Disagreement on how much we should have.

[Jade Warshaw]

Okay.

[Michelle]

So. And we're actually on the same page about most everything else when it comes to finances but this one. So I'll just lay it out.

[Ken Coleman]

Yeah. What does he think?

[Jade Warshaw]

Yeah.

[Ken Coleman]

How much?

[Michelle]

Okay, so we both right now have 500,000 on each of us. And he is completely fine with that.

[Jade Warshaw]

Okay.

[Michelle]

And I used to be, but then I've been listening to you guys a lot more and now I know that it should be 10 to 12 times our annual income.

[Jade Warshaw]

That's right.

[Michelle]

And so we're just not at enough. And he is like, not about it.

[Ken Coleman]

Well, this makes him wrong and this makes you right.

[Jade Warshaw]

Well, yeah, I agree with Ken and let's talk deeply about it. The purpose of insurance is to. If something, God forbid were to happen to either of you, anybody that's dependent on your income, they will be set up. Right. And it's not just for the moment, it's ongoing. And so what's your income and what's his income?

[Michelle]

So mine's right at about 100 and his is about 130.

[Jade Warshaw]

Okay, so yours is at 100, his is at 130. So if something, God forbid were to happen to you, he's got five years salary, basically. But you're saying, hey, I'd love for this to be even better. I'd love for you to be that if we do what I'm saying, which is you'd have, you know, over a million dollars of coverage.

[Ken Coleman]

2.5 is what I'm recommending. I'm bumping it up. Up.

[Jade Warshaw]

Okay. Yeah. Okay.

[Ken Coleman]

Because you got them at 230 combined income.

[Jade Warshaw]

Yeah, but I'm saying individual policies.

[Ken Coleman]

Right, I know, but my point total is going to be 2.5 between the two.

[Jade Warshaw]

Yes, that's all I'm saying. Exactly. But if something were to happen to you, like for you to be able to provide 10, 10 basically 10 years of, of your salary to him. What a great gift.

[Ken Coleman]

Yeah.

[Jade Warshaw]

I mean, that allows. So what's the difference? Like he's probably thinking about quarterly payments or monthly payments. What does this look like? Have you priced out the numbers?

[Michelle]

Yeah, actually I did. And so basically, like he thinks it's a waste of money. And honestly we probably would have none if it weren't for. Were in the military. So we have to take that 500 each.

[Jade Warshaw]

Okay.

[Michelle]

And so thank goodness. But. And no, and he does have a point. Like he says, you know, like, if, if one of us were to pass the other one, you know, with that 500, like could easily pay off everything. And then we each make enough to, like, you know, live our. With our daily expenses. So I get it. But I was telling him because I heard you say, actually not that long ago, and it kind of made me, like, really look into this and, like, be like, wow, I never thought about this before because we had always had that same mindset as, like, he has now. But you said, you know, the intent is that if they pass, it's not just to, like, oh, here, pay off your debt, and like, not a retirement plan. It's like, hey, invest this, and then the interest should pretty much make up for the income that you're losing. And I was like, oh, my goodness, that makes so much sense. So I really want to do it. Yeah. But he is like, he just doesn't. He thinks it's a waste of money. And of course, like, he jokes when I mention it, and he's like, you know what? I'm not gonna die until we're way older anyway, so it doesn't even matter. And I'm like, well, I love your confidence.

[Caller]

Thanks.

[Ken Coleman]

That makes me a little uncomfortable almost.

[Jade Warshaw]

I think he's uncomfortable. I think. I think the whole, like you said, it's the 500. It's part of work, it's required. So in many ways, for him, that was a no brainer. But when it's time to actually turn on the, you know, turn on the lights in his brain and start thinking about it, it's an uncomfortable conversation. You're talking about what happens when you, you know, kick the bucket. And that's not.

[Ken Coleman]

I. I'd flip this. I'd flip this on him. I think he's a real cavalier about this. I think he's too cavalier about it to be completely honest. But okay, play it his way. Go. All right. I did the numbers. I did the. Ran the numbers, got some quotes from Xander. Let me show you the quotes. And since you're okay if I die, just living with the 500, turns out I'm okay with that too, but tell you where I'm not okay if you die early, Sparky McGee.

[Jade Warshaw]

There you go.

[Ken Coleman]

I don't think 500 is enough for my safety gland. And I got some numbers I ran. And I'm pretty much telling you that we need to do this. I'm not asking your permission. I'm just getting you to buy in from my peace of mind. And I'd lay the real numbers out, which, by the way, I'm just curious, what would it. What would the total increase be year over year with the numbers you got from Xander. I'm just curious.

[Jade Warshaw]

I want to know too.

[Caller]

Okay.

[Michelle]

Yeah. And actually I was really impressed. So I did a quote on just mine for another 500 because that would put me at a million.

[Ken Coleman]

Perfect.

[Michelle]

And that's only going to be like 17 doll dollars a month.

[Ken Coleman]

So I go back to Sparky and I'm sorry I'm calling your husband Sparky, but. But he's kind of irritated me a little bit and I'm trying to be nice. I'd go back to him and go, hey, listen, I know you're good with the 500k if I kick the bucket early. I'm not. I just bumped it up to what this guy Dave Ramsey's been teaching for decades. And it's 17.

[Jade Warshaw]

I mean, come on. That's one drive through, by the way. One time through the drive for the month.

[Ken Coleman]

Yeah, that's two Starbucks, you know, come on, lot. So I would just present. I present it that way and say I'm doing this.

[Jade Warshaw]

Yeah. Yes, Ken.

[Caller]

Oh, by the way, we do, we.

[Michelle]

Do have to agree on everything. Like that is something that.

[Ken Coleman]

I know, I know I'm having some fun with this. I'm not.

[Michelle]

I know, but.

[Ken Coleman]

But we're also talking about real 17amonth. I don't think this is a knockdown drag out is my point.

[Jade Warshaw]

Is he being stingy? Are you guys still in debt? Is that why he's being kind of tight with the purse strings?

[Michelle]

Okay, yes, we are. We do have debt, but it is not out of control.

[Jade Warshaw]

Okay, is he super tight?

[Michelle]

Yes. And, and the thing is, is like I, it's not that I don't understand it and I value it and everything and, but I just think that, like, he thinks it's unnecessary. So we are not about unnecessary spending.

[Ken Coleman]

And I would get it.

[Michelle]

He's like, no, we're completely covered. Like, like, he is like, oh, no. Like, like, you know, if the 500,000, that would take care of everything and we both make enough income that like all of our, you know, monthly expenses are good. There's just no reason for it.

[Jade Warshaw]

Let's go back to the basics of this. We need to. And this is what you tell him. And hey, play the call like the. This, this is documented.

[Ken Coleman]

Oh, I can't wait. Sorry. Sorry, man, for calling you Sparky.

[Jade Warshaw]

But so here's the thing. Let's go back to the basics on this because when we what we teach here, right, the baby steps on getting out of debt. The whole entire purpose is, is to change Your family tree, it's all legacy built at the end of the day. It provides peace now, but it's also providing peace for the for the future and for the people that come after you. And such a huge part of that is insurance. Until you can self insurance because in self insure because we're building wealth not just for us but to be able to pass down. And until you can self insure, depending on insurance companies to help you with that is such a huge part of the wealth building process for you because again, I hope you guys live and be as old as Methuselah. I don't care. Live as long as you want. But if for some reason you don't, this is here. It's kind of just that fail safe that kicks in. And to spend Sparky, Marky, Mark, Biff, whatever your name is to spend the extra 17, bud.

[Ken Coleman]

It's $204 a year.

[Jade Warshaw]

It's $204.

[Michelle]

Yeah.

[Jade Warshaw]

To make sure has half a million.

[Ken Coleman]

More for by the way, for your peace of mind. I keep playing that card. I wasn't. I was having fun with it. But I'm not joking around. He's tight. Play to that. Go. You're tight because you're fearful about money and stuff. And I appreciate that.

[Jade Warshaw]

There you go, Ken.

[Ken Coleman]

But guess where I'm tight. I'm nervous about this. And it's $204 a month. So go. So you know what? Yes. We got to be in agreement. I'd say. Sparky, it's time to have a new budget meeting. We have. It's like Colin Kyle, Congress back for a special session. We're having a special mid monon budget meeting and I am going to find $17 a month.

[Jade Warshaw]

Yeah.

[Ken Coleman]

To make sure that I'm not stressed out when you die early because you drink too much diet coke or whatever. Sorry. Diet coke drinkers, you mean.

[Jade Warshaw]

Sorry. Sparky.

[Ken Coleman]

Sparky.

[Jade Warshaw]

We love you, Sparky. We want the best.

[Ken Coleman]

We do love you. Help your wife out, dude. Come on.

[Jade Warshaw]

This is the Ramsay show.

[Caller]

Foreign.

[Ken Coleman]

Welcome back to the Ramsey show alongside Jayd Warshaw. I'm Ken Coleman. Phone number is, Iple 882-55-5225. To get coached up, the Ramsey show question of the day is brought to you by our friends at why refi. Why refi? Refinance is defaulted private student loans that other places won't touch and gives you a low fixed rate rate loan built just for you. Cherise K. She took advantage of this and lowered her payment from $2,000 to six to $680 a month with Y Refi. So you need to go to y refi.com Ramsey today if that's you and you can learn more there. That's the letter Y r e f y.com Ramsey. It may not be available in all states.

[Jade Warshaw]

Alrighty. Today's question comes from Andy. In Delaware. My fiance had a lot of debt related to a prior divorce. She's currently living with her parents and her parents used a little cash and 10 credit cards to pay off her debt. So now she owes them close to $75,000. I know legally most of this is not in my fiance's name, but morally we owe it together when we get married. I didn't agree with how her mom put this debt on credit cards. And it doesn't sound like they are paying much more than the minimums right now. My plan is to take out a personal loan after we get married to pay off her parents in full so I have control over the debt completely. This would drop down the interest significantly. We could then attack it with both of our incomes to pay it off as quickly as we can. Would this work or is there a better plan? Okay, so just to clarify, there was a divorce, she had debt. Her parents said, we'll take care of it, but we're doing it with credit cards.

[Caller]

Cards.

[Jade Warshaw]

And you're like, no, when we get married, we're going to take out a personal loan to clear it. I don't necessarily like that method. I like that you're saying, hey, after we get married, then we'll tackle it together. That is right. So green check on that. I would not do the loan. The truth is you're only on the hook for the 75, 000. You're not necessarily on the hook for any interest. That, that is in crude because of their method of paying for this. That part is on them because they chose that route. They chose that card with that interest rate. Unless there's a conversation that I don't know about in my mind, I'd be like, I owe you $75,000. Ken.

[Ken Coleman]

I couldn't agree more. It's a lot easier. They, they've already, they've already assumed this debt for her. This is not something that she put on them. They did this. I would pay the parents directly. And I agree with Jade. I wouldn't worry about the interest. That's their problem. I think they'll be thrilled that you guys are serious about paying it off. And I think it's a easier to pay them off now. I would only say the caveat to that is you both need to agree, you and your fiance, that we aren't skipping this. We're going to treat this like it is a private loan. Like our credit would be affected. Like they'd come after us with collections. All of the things that people that loan money put in place as some sense of accountability. And I think that's the key. Or else this could create tension. And I don't think that's the case here. I think, I think, I think this is like we want to get this out. I love the urgency, love the character and the integrity. Integrity here. But I agree with Jade. 100 pay the parents directly.

[Jade Warshaw]

Here's the problem I do foresee is that he, he's already noticing, hey, her mom put this on credit cards. It. And this is him speculating. It doesn't seem like she's making payments. So. Or he says something there where they're paying the minimums. Yeah, they're paying minimums. So I do foresee a problem of down the line them saying, well we did this, but it's. The balance has grown. So I do think you need to have some sort of really, really clear conversation about how interest is handled.

[Caller]

Yeah.

[Jade Warshaw]

And how that part is not pertaining to you.

[Ken Coleman]

And, and records, records, records, records, records. I would treat every payment that's sent to the parents, however you choose to do it. I would have that in a journal, a, a financial record. Your bank would easily give you that. I would do that so that it is tracked.

[Jade Warshaw]

Yes.

[Ken Coleman]

If you have the conversation that Jade is recommending. And I agree because again, they could do something dumb with all that 75,000 and not pay off the cracker. But at that point ain't my problem.

[Jade Warshaw]

And let it be known when Ken and I talk about you having this conversation, we really mean your, your wife, not you. You need to stay far from this conversation and let her speak for both of you because otherwise this could get grizzly.

[Ken Coleman]

Let's go to Detroit, Michigan, where Nick awaits. Nick, how can we help?

[Caller]

Hey, Ken and Jade, thank you for taking my call. I had a question about having dual employment. Reason being was we have three boys, seven, six and three. So we're in that messy middle. And I wanted to give my wife the opportunity to be a stay at home mom. She was a nurse to begin with and then once we had our third child, I just said might as well stay at home. We can survive with my income now that she, we took advantage of her or she took advantage by herself going through her masters to get Nurse practitioner. And she just completed the program and.

[Jade Warshaw]

You told her to stay home?

[Caller]

Yeah.

[Jade Warshaw]

Hold on, hold on.

[Caller]

I did.

[Jade Warshaw]

Okay, so can you go ahead? Yeah, sorry.

[Ken Coleman]

That's all right.

[Jade Warshaw]

Go ahead.

[Ken Coleman]

Yeah, keep going. Set it, get it, get it. Get to our question.

[Caller]

Yep. Okay, so I work for fire department and I make about 110,000. And then I also have a family business where I make about 100,000 as well. Obviously the fire is pension and then the family business is just straight salary. There is a simple IRA that I can contribute to. My question is, now that she has her nurse practitioner license and we have no student debt, am I crazy to leave my fire department employment and give up my pension opportunity and allow her income to supplement my loss and obviously strive to make more at the family business? Or do I just grind it out with both employments if I can manage it?

[Ken Coleman]

All right, so how much is she gonna. Excuse me? How much is she gonna make as a nurse practitioner?

[Caller]

I would. I would hope about 140.

[Ken Coleman]

Okay, so 140. And the family business, where you're making 100 right now, do you own that or are you working for another family member?

[Caller]

For my dad.

[Ken Coleman]

Okay, and is that what you want to do long term? Let's go 15, 20 years from now. Do you want to be a fireman and be in the business, or do you just want to be running that business or not in it at all?

[Caller]

No. And so that's the unique part is in about five years, I had the opportunity to leave the fire department under a full pension or I'm able to be. I can pull out from the pension.

[Ken Coleman]

I know, but I'm not. I'm not focusing on that. I'm asking, do you want to be long term owner or involved in the family business? Yes or no?

[Caller]

Yes. Yes.

[Ken Coleman]

I mean, that's the dream. That's what you want, right?

[Caller]

Yes.

[Ken Coleman]

Okay, so what would benefit you leaving the fire department right now? Forget the pension. I know you're all hung up off the pension. I don't really care about the pension. I'm not minimizing the pension, but we don't make decisions based on pensions. Okay, so my question is, if you leave the fire department, that's a certain block of hours every week and you just focused on the business, would that allow you to do more and get paid more in the family business?

[Caller]

Yeah, there would have to be a discussion, but yeah, absolutely, I'd have the discussion.

[Ken Coleman]

Dad, if I walk away from the fire department and I start full time and I'm all My energy in here. What's that look like? This is very simple. Stop thinking about the fire pension. Because if you walk away from the pension to make your life better in the now and the next. Nobody cares about the pension.

[Jade Warshaw]

Jade, I want to know where does the stay at home mom who was going to be a nurse practitioner fit into all this? Because that was the thing that made me be like, wait, what, what, what?

[Ken Coleman]

Sounds like she's back in, right? Right to work.

[Caller]

Yeah. No, and that was the goal. I mean she just wanted, she, that was her personal goal was to become a nurse practitioner and okay. For being a stay at home mom. It gave her the opportunity to just focus on school and nothing else.

[Ken Coleman]

So she's excited. She's excited. And to get back in.

[Caller]

And does she have a gig she's currently seeking?

[Ken Coleman]

Yeah.

[Jade Warshaw]

Okay, cool. Okay. Okay.

[Ken Coleman]

Yeah. I walk away from the fireman position. There's. You're only in it because of this pension. It's the only reason evidence you've given us as to why you'd keep doing it. And I just don't think you need to keep doing it. Now, you can if you want to, but if I'm trying to grow in one area, which is for you, as a family business, every second I'm spending in the fire station is taking away from that long term goal. And if your wife makes 110, she's replacing the fireman salary.

[Jade Warshaw]

Yeah, why not?

[Ken Coleman]

Bingo. This is a no brainer if it plays out the way that you want it to play out.

[Jade Warshaw]

Out.

[Ken Coleman]

Maybe wait until she gets the gig.

[Caller]

I'm afraid to pull the trigger.

[Ken Coleman]

Well, don't pull the trigger until she starts making the money and she's in.

[Caller]

No, absolutely.

[Ken Coleman]

Yeah, man, you got this.

[Jade Warshaw]

That's interesting. Yeah, Yeah. I was confused in the very beginning, but I also jumped the gun, so that's why I was confused.

[Ken Coleman]

Yeah, you got, you got a little fired up.

[Jade Warshaw]

I know I did.

[Ken Coleman]

You thought that was going a different direction.

[Jade Warshaw]

I did, I did.

[Ken Coleman]

Don't tell me what I can do. Is that what I heard?

[Jade Warshaw]

Yeah, yeah, I, I, yeah, I, I digress.

[Ken Coleman]

She's a strong woman. Hear her roar.

[Jade Warshaw]

Folks.

[Ken Coleman]

Good hour. This is the Ramsay show.

[Announcer]

Hey folks, our Fourth of July sale is happening right now. From July 3rd through the 6th, when you buy a sale book at full price, you'll get a second one half off. Grab the total money makeover. Breaking free from broke or even. Smart money, smart kids. All written to help you win with money this Independence Day. Celebrate your freedom with tools that help you ditch debt and money stress so you can build the future you want. Visit ramseysolutions.com store to get started. Brought to you by the EveryDollar app. Start budgeting for free today.

[Ken Coleman]

Welcome to the Ramsey show, where we help you win in your life, America. Specifically, winning in your money, winning in your work, and winning in your relationships. The phone number for us to coach you up is triple 8825-5258-8885-5225. The Dynamo next to me is the one, the only, Jade Warshaw. I'm Ken Coleman. She'll take lead on the money calls and help you manage the money. And I want to help you make. Make more money. So it's a good combo. Let's get right to it. We're going to go to Denver, Colorado. Peter is there. Peter, how can we help today?

[Caller]

Hey, guys, thanks for taking my call.

[Ken Coleman]

You bet.

[Caller]

So I'm calling in because my wife and I are in baby step two and trying to get out of debt. And about a year and a half ago, I got my wife a horse lease started because she loved being with horses and working with them. She was at the time volunteering at a horse center for people with disabilities. So she got to basically just shovel, poop, and be around horses, but didn't get to ride ever. And I saw how much joy that was bringing her, so I got her this horse lease.

[Jade Warshaw]

What's that mean? Can you explain that more to me?

[Ken Coleman]

Yeah, I've never heard of that.

[Caller]

Yeah. So Basically we pay $350 a month, and she can go out to this property and ride the horse whenever she wants. Her, myself, and the kids, actually. So it's been a lot of fun, but I'm wondering if we're being irresponsible since we're in baby step two.

[Jade Warshaw]

Is it. Can I ask more? I'm just gonna dig deeper on the horse lease real quick. So is it. There's several horses on the property and she can ride any horse, or does she kind of get assigned a horse that's like. That's her horse? Tell me more about it. The. Is it personal? Is it.

[Caller]

Yeah. So we just have the one horse that we have access to.

[Ken Coleman]

And how long is. How long have you been doing this?

[Caller]

About a year and a half.

[Jade Warshaw]

Year and a half.

[Ken Coleman]

And the idea of her giving this up is met with what kind of reaction?

[Caller]

Not great. A lot of tears. And she feels like it just helps her a lot emotionally.

[Ken Coleman]

Yeah.

[Jade Warshaw]

How.

[Ken Coleman]

Wow.

[Jade Warshaw]

How long would you have to give it up? I mean, how long is you guys journey? Are we talking?

[Caller]

Well, so I don't. So we have like 21, 000 in debt. I've got 3,000 on the last credit card. 5,000 maybe it's over 21. So 5,000 on my truck. And then I just got a personal loan for 15,000 to cover last year's taxes because that was the first year we'd ever had to pay taxes.

[Jade Warshaw]

Okay, so you're at 23 now?

[Caller]

Yeah.

[Jade Warshaw]

Okay, so is that it or is there more?

[Caller]

That's it.

[Jade Warshaw]

Okay, and what's the income? Sorry, Ken.

[Ken Coleman]

No, go ahead.

[Caller]

Make about 120,000.

[Jade Warshaw]

Oh, okay. So why. This is going to be gone in a year. You're going to live on 100 and you're gonna knock this out in one year or less.

[Caller]

Yeah. Shooting for like nine months.

[Jade Warshaw]

Yeah.

[Caller]

Good for you.

[Ken Coleman]

Can she work or does she work outside the home?

[Caller]

So she homeschools our three boys and stays at home?

[Ken Coleman]

That's not what I asked. Can she work?

[Caller]

She does sometimes doing. Well, I. I'm a trim carpenter and so when we're done with houses, the general contractor that I work for will hire her to go in and do the post construction cleanup.

[Ken Coleman]

And what kind of money does she make and how long does it take her to make this money?

[Caller]

It's very sporadic because it's just when we finish houses. So it could be like three right in a row or like the next one we'll have is maybe two months away.

[Ken Coleman]

How much time does she take when she cleans?

[Caller]

One to two. One day.

[Ken Coleman]

Usually one day. And so she's able to do this with the kids?

[Caller]

Yeah, usually we just have my father in law babysit.

[Ken Coleman]

All right, I'm gathering information over here.

[Jade Warshaw]

I. I mean I'd simplify it. I'd simplify it like this. And some people might hate this answer. Technically, if you're in baby step two, you cut out things like this.

[Ken Coleman]

Yeah.

[Jade Warshaw]

Now you guys aren't. You're not burning like some people are in debt. And you could be if you choose not to go hard on this. But you're going to be out of debt so quickly. What I'd say is if you want to spend 350 and keep this horse.

[Ken Coleman]

Horse.

[Jade Warshaw]

Lease up with this horse that you've probably established a relationship with, just earn the 350amonth, earn it back.

[Ken Coleman]

First of all, I am shocked right now, but I love it because I thought you were gonna go hard on this one.

[Jade Warshaw]

It's an amount of money that's. That is truly not going to make or break them to that extent.

[Ken Coleman]

Yes, but I'm with you. I want to make sure the audience hears this. I want to make sure that Peter hears this. I love this idea because that's what I was gonna say.

[Jade Warshaw]

Go.

[Ken Coleman]

Mama needs to go make the 350.

[Jade Warshaw]

Yeah.

[Ken Coleman]

Or there is no horse.

[Jade Warshaw]

Yeah. If.

[Ken Coleman]

Because she's got to cover the horse. But I do have one question on that, Peter. Let's say it takes you nine months and all this is clear. Is that what you. Is that the number you gave us?

[Caller]

That's what we're shooting for.

[Ken Coleman]

What's the name of the horse?

[Caller]

Jesse.

[Ken Coleman]

Is Jesse going to be available for lease nine months from now?

[Caller]

It's certainly not guaranteed.

[Jade Warshaw]

Is Jesse old?

[Ken Coleman]

Well, that doesn't make any difference because if Jesse dies, we can't lease him anyway.

[Jade Warshaw]

I know, but I'm just saying maybe she wants to live out Jesse's last night.

[Ken Coleman]

I'm gonna throw a wrinkle into this, Peter and Jade. I'm gonna throw something out and let you two discuss it.

[Jade Warshaw]

Okay?

[Ken Coleman]

You ready?

[Jade Warshaw]

Yeah, I'm ready.

[Ken Coleman]

I like your idea, but I think the better idea is to go talk to Jesse's owner.

[Jade Warshaw]

Okay.

[Ken Coleman]

And tell Jesse's owner what the story is.

[Jade Warshaw]

Okay.

[Ken Coleman]

And say nine months from now, now we're going to be debt free. And this is super important to my wife. I need to know that we can jump back into the contract and lease Jesse nine months from now. And I would take the 350 and I would help Mama get motivated to knock this debt out and say we're going to stop riding Jesse for nine months.

[Jade Warshaw]

Okay.

[Ken Coleman]

But I'm just throwing it. I'm throwing a hardcore alternative out there. Peter J. Discuss.

[Jade Warshaw]

So, Peter, are you saying that if you were to cancel the lease, are you worried about Jesse not being available in that somebody else would take the lease spot? Is that what you're concerned about?

[Caller]

Essentially, yes. Yeah. She could just lease her out to somebody else.

[Ken Coleman]

I have the conversation with Jesse's owner.

[Jade Warshaw]

Yeah, well, but if I'm the owner, If I'm. If I'm Jesse's owner, I'm like, you want me to hold the horse?

[Ken Coleman]

But how can she not lease him out to, like, 50 people? How many times can you ride Jesse in one month? I mean, that's easy. Got to be available.

[Caller]

So we're. There's usually only one.

[Ken Coleman]

By the way, I should point out.

[Jade Warshaw]

To people who just jumped into the horse.

[Ken Coleman]

Jesse is a horse. We're talking about riding a horse.

[Jade Warshaw]

Yeah.

[Ken Coleman]

I should have probably made that clear.

[Jade Warshaw]

Yes.

[Ken Coleman]

I'll refer to him as the horse from now.

[Jade Warshaw]

Jesse the horse.

[Ken Coleman]

So it's not to confuse everybody. All right. But how many times can you ride the horse in a month?

[Jade Warshaw]

She goes out like once a month, right?

[Caller]

I mean, twice a week.

[Jade Warshaw]

Okay, twice. Oh, that's a lot. A lot. Well, twice a week for 350. And I don't want to get too deeply into your business, but I did want to ask, because you kind of alluded to it. Does your wife struggle with like some. Anything mentally? Because you said it helps her mental health.

[Caller]

I don't think it's so much like a mental health problem so much as just like she, she's with the boys constantly. She homeschools.

[Ken Coleman]

Yeah, totally.

[Caller]

And that's kind of like her.

[Ken Coleman]

No need.

[Jade Warshaw]

Yes. Our children drive us crazy. We are.

[Ken Coleman]

She needs a little time with nature. Come on. Done.

[Jade Warshaw]

Okay. I, I listen, I think Ken's idea can't hurt it. Can't hurt you to go by and say, hey, we've got a nine month window. We've been working with you guys for a year and a half. We love it. Can we need to temporarily suspend this and then we'll be back. You know, give him the date and time. If he says yeah, say yeah, but if not, yeah, tell mom and be like, hey, mom, if you want to keep this going, you just got to fund it. Because we decided that our priority is paying off the debt. And so we decided that that's the priority. With their current income. Come and I want to stand by that. And if you want to do something more.

[Ken Coleman]

Clean some houses.

[Jade Warshaw]

Mama got stuff.

[Ken Coleman]

Clean some toilets.

[Jade Warshaw]

Well, it doesn't have to be toilets. That's the last thing I'm going to. That's the last job I'm taking.

[Ken Coleman]

I'm trying to make a point. She really wants to ride the horse. You got to pay for it. This is the Ramsay show.

[Announcer]

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[Caller]

Foreign.

[Jade Warshaw]

You'Re listening to the Ramsey Show. I don't know about you, Ken, but I feel like the last couple of calls we've gotten have had something to do with protections.

[Ken Coleman]

Yes.

[Jade Warshaw]

Making sure that an inheritance is safe. Making sure that the money and the net worth that we've amassed is safe. Making sure that my identity is safe. It all has to do with insurance. And everybody wants to have the right insurances. After all, insurance is there to mitigate risk. Risk. Right. Whether it's health insurance, home insurance, renters insurance, all of these things are out there to protect you in case a cost comes up that you yourself cannot cover. Your insurance is there to kind of fill that gap for you. And it can be very confusing to navigate all of the insurances and doing, you know, going through. I don't know, Ken. That is something that if we start talking about insurance, my eyes glaze over and I want someone to handle it for me.

[Ken Coleman]

Yes, I. I would concur.

[Jade Warshaw]

And so our Ramsey trusted pros, they shop the market and they compare all the insurance quotes so that you don't have to and so that I don't have to. And your pro will compare the quotes, they'll look at the discounts, and they will bundle the deals for you at no extra cost, which is great. When my husband and I moved here, Ken, we were, you know, in a new house. We had to have the. The housing insurance for that. We needed to get the umbrella coverage and all that. And they shopped all the quotes. Quotes. They rolled it into one nice, neat bow, and we got more coverage for less money like that. I love that. So Ramsey trusted pros will make sure you have all the coverage you need and nothing that you don't. So there's not going to be any fluff here. Ramsey trusted pros, they're interviewed, they are vetted, and they are coached to make sure that they're market experts. And here's the best part. They truly do have your best interest at heart. I've experienced that, Ken. I know that you have experienced that. So the question you need to be asking yourself is, do you have the right coverage based on your individual needs? Okay. And so to do that, go to Ramsey Solutions.com coverage again, that's Ramsey Solutions.com coverage. And let me just add, because I hear it in the wind, insurance guys is not a baby step. Okay? It's not something that you wait until you're after, you know, after you've paid off your debt or after you've saved up your savings to do. Insurance is something that you do the moment that you've learned about it. And so if you've been listening to this show for a couple of segments or even just this one segment and you're like, oh, you know what? I don't have life insurance. That is your signal that you need to act on that today. Not once you've paid your debt off. Okay, if you don't have health insurance, check out Health trust. That's the, the partnership that we have. You need health insurance today. If you're a renter and you don't have renters insurance, this is your sign from. Oh, this is your sign. You need renters insurance. You are out here with no coverage. Anything can happen. If you don't know if you have the bare minimum of auto, you need to do our insurance checkup and make sure that you are covered. Because if you get in an accident and your coverage isn't what you thought it would be, you're about to be up a creek without a paddle. So please, please, please prioritize this in your every dollar budget. It is so, so very important to get the coverage you need today. Our Ramsey trusted pros will help you do that. All right, let's go to the phone lines. Tyler in Buffalo, New York is here. What's going on, Tyler?

[Caller]

Hi. How we doing today?

[Jade Warshaw]

Doing good. How can we help?

[Caller]

Hi. So I'm looking into possibly starting up a home inspectors business come this winter here. And I was just curious on what the right steps would be to do that.

[Ken Coleman]

All right, so home inspection. Why did you pick that problem or that solution? What, what, what drew you to that?

[Caller]

I guess the big part that came out of it is the flexibleness because I have a job right now that's kind of, it's seasonal, it pays very well with the season's on. But then winter time, you don't have hardly anything going on. Okay. Okay. All right.

[Ken Coleman]

And what, what's the homes inspection business like in the brutal winners of Buffalo? I'm, I'm guessing you Buffalo folks, I mean, you just know how to handle that kind of snow. I mean, you guys were in the news last year during the football season. Crazy snow. Is it a normal rhythm? And there is not a big drop off in the wintertime in Buffalo as it relates to home inspection.

[Caller]

Nothing too crazy, you know, at that time right there. I actually live south of Buffalo and there's a lot of new builds going on, so.

[Ken Coleman]

Okay, good.

[Caller]

A lot of possibility for it.

[Ken Coleman]

You have a background and some expertise, some skill set that lends itself to doing that. Well.

[Caller]

I did plumbing for about five years. I shadowed an electrician. I've worked with carpenters you know, I, when it comes to the nuts and bolts of it, I, I, you got it.

[Ken Coleman]

Trust me. You had me at plumbing. I mean, I was like, okay, you've got the skill set for that. You enjoy the work. It can be a pretty good business. I mean, you can build this thing and, and to where it could replace your seasonal income. So I'm not seeing any red flags on this. How much is it going to cost for you to get qualified to do that? Is it a certification?

[Caller]

Yes. The bits I've looked into, you know, you can go online and file through a course, and then that right there is roughly probably about 2,500, 2500 bucks.

[Ken Coleman]

Do you have the cash for that?

[Caller]

Yes.

[Ken Coleman]

All right, I like that. So no red flag there. And is the market saturated? Is the market moderate as it relates to people out there that are your competitors, or is there hardly anybody doing it?

[Caller]

In my micro area, there's. There's two. And they, you know, honestly, the quality of the work they do is not very well. And that was something I actually seen an issue when I was working on the trade still.

[Ken Coleman]

Okay, so you've heard this from viable sources that these guys or gals aren't doing a good job?

[Caller]

Job, yes. And even seen it myself.

[Ken Coleman]

Are they covered up in business or are they. What's their business like, the flow of business?

[Caller]

They seem to stay fairly steady, but at the same time, the exact grid of it, I'm. I'm unsure.

[Ken Coleman]

What's your gumption level as relates to talking to realtors, bankers, mortgage pros? Are you a guy that'll get out and connect and shake people's hand, look them in the eye and go, I'm the newest home inspector on the block, and I come from the trades. And I'm telling you, my competition, they ain't so good. I'm fantastic. Give me a shot. Are you willing to do that?

[Caller]

Absolutely.

[Ken Coleman]

All right, Jade, I ran him through my questions. I turned the balance of my time over to you. I don't see anything.

[Jade Warshaw]

I love that word. I love that.

[Ken Coleman]

Because this is a, the reason I asked that question, Tyler, is because this is a business where you, sir, are the product.

[Jade Warshaw]

That's right. Right.

[Ken Coleman]

And Jade and I are in that same business. Jade's the product, I'm the product. So you got to have that gumption necessary to, to, to put yourself out there.

[Jade Warshaw]

And the realtors that you want to work with are going to be the type who are doing high volume because they're going to be able to give you A lot of work. And if they are high volume realtors, they know how to talk, they know how to command a room, they know how to, you know, their BS level is very low, right? So it's like this guy, you know, but if you come in there and you're like, listen, we need to work together. Here's why. Why? I love that. So my question that I. The only question I wrote down, which I kind of feel like that's what we're into now, is how do you get clients? Like, what's the strategy for you to go in there? Because it's not like you're trying to railroad anybody or, you know, you're not intentionally trying to like steal anybody's clients, but at the same time you want the work. Does that make sense? So it's like, how do you see yourself getting in there and kind of pulling the boat close to the dock and getting those clients?

[Caller]

See, that's. That's one thing I'm kind of unsure of. I, I don't know really where to start with it. I wasn't sure if it's something you can get in with the banks or, you know, you contact realtors or if it's just a matter of, you know, just everybody you can to get your name out there.

[Ken Coleman]

Okay, well, it's the list that I ran through earlier. But I would start with the. Your mortgage, Your mortgage companies in the area. They're the ones that when a house is going for refinance or the actual initial financing, they are the ones that are getting the home inspector out. I know when I've refied the company I refied with, they're the one that chose the. They have their guys and they get their gals.

[Jade Warshaw]

Okay?

[Ken Coleman]

So for certain, for certain mortgage. I would check on the realtor side. I'm going to say, I don't know, I think that's more of a mortgage play.

[Jade Warshaw]

Okay.

[Ken Coleman]

Because again, the mortgage company are the ones. The banks, they're the ones that need to know what the house situation is, you know, now realtors do it as well. I'm not saying realtors don't, but I'm saying realtors and mortgage companies, when they do refinancing, they'll have a. I'm sorry, I've confused the whole situation. You're talking about home inspection. I apologize. I got in my head. Home appraisal. Sorry. Mortgage companies are appraisers.

[Jade Warshaw]

That's right. Okay.

[Ken Coleman]

Home inspection is realtor. You're right. I got. My brain just got all cobweb that's all right, Ken. I got the broom out.

[Jade Warshaw]

You're all swept clean.

[Ken Coleman]

Appraisals. So home appraisers. That's different than the home. Home inspector. So realtors. Realtors, Realtors all day and. Hey, listen, can we tell them? Tyler, if I were you, I'd start with the. With the website ramseysolutions.com and find the. Find our. Those pros.

[Jade Warshaw]

That's it. The realtor pros right there.

[Ken Coleman]

Start calling them and go. I called the Ramsey Show. I'm a big Ramsey listener, and you are a trusted pro. Can we talk? Can I help you? Of you. So that's where I would go.

[Jade Warshaw]

Look at this guy. Come on, Ken.

[Ken Coleman]

I had to get the cobwebs out of the way first.

[Jade Warshaw]

It's what he does. It's what he does.

[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, the 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. This is the Ramsey show alongside Jake Warshaw. I'm Ken Coleman. The phone number is, $8825-5225, 888-825-5225. Let's go to Phoenix, Arizona. Jonathan is there. Jonathan, how can we help?

[Caller]

Hey, thanks for taking my call.

[Ken Coleman]

Sure.

[Caller]

Not quite sure where to start. To be brief, I'm 24 with two kids of my own. My fiance has two kids from a past relationship, and I am the only one that works at the moment. And it just seems like I'm always drowning. I come from a family that has never really been financially stable, so I don't even know where to start to begin to get out of this, like, drowning feeling.

[Ken Coleman]

Yeah, man, I'm so sorry, but can I just tell you real quick before we go into this? I sense in you a guy who wants to change his family tree. I sense in you a guy who is busting his tail and trying to do right by those little ones. And I wanted to encourage you because I think you've got a lot of character. And I love the fact that you're calling and asking for help. It's a big deal to go. I need help and I want to. I just felt like you needed to hear this, that you're not a failure and you are going to be able to figure this out. We're going to help today. You got me?

[Caller]

Yeah.

[Ken Coleman]

A couple quick things here. I'm going to turn you over to Jade, all right? So we're going to try to do as much as we can in a quick amount of time. Number one, what are you doing and what is your income?

[Caller]

I work in the H vac industry and my yearly income is around 60 to 80 on a good year.

[Ken Coleman]

Okay, that's not bad. So we've got somewhere between 60 to 80,000 gross. And are all four, if I heard you right, you've got two kids and your. And your girlfriend or fiance has. Is she. Is your fiance or no?

[Caller]

Yes, she's.

[Ken Coleman]

Okay. I thought I heard that. Okay, she's got. Are you got all four kids staying with you guys all the time?

[Caller]

Yes.

[Ken Coleman]

Okay, so she's. She's at home taking care of the kids.

[Caller]

Yeah.

[Ken Coleman]

Gotcha. Okay, and what kind of debt do you have?

[Caller]

Have? We're in about 23,000 in a minivan.

[Ken Coleman]

Now, wait a second. When you say. When you say we, did you both sign on to that deal?

[Caller]

Yes. Yeah, we did. All right.

[Ken Coleman]

And it's 23,000 on a minivan?

[Caller]

Yeah.

[Ken Coleman]

Okay. What other debt do you have?

[Caller]

And then I have about, let's say 1600 in collections and credit cards, and then she has around, say, 600 to a thousand in collections and credit cards.

[Ken Coleman]

That's it?

[Caller]

Yeah.

[Ken Coleman]

You got any money in the bank at all?

[Caller]

No, I did, but we had to go through it hit some unfortunate times, so. Yeah, no, it's cleared out.

[Ken Coleman]

What do you mean by unfortunate times? Give me 20 seconds on that.

[Caller]

I lost my job, my last job where I. It was great money, good work. I was able to save up around four to five grand. And then once I got laid off from that company, we had to use that to keep our bills.

[Ken Coleman]

Was that H vac work as well or something different?

[Caller]

Yeah, no, it was hvac.

[Ken Coleman]

Did you. You don't have to tell us, but did. Was this something you did?

[Caller]

Yeah.

[Ken Coleman]

Did you learn. Did you learn from it?

[Caller]

Yeah, absolutely.

[Ken Coleman]

Okay, so what that tells me, though, is that you have more income potential in that industry because you were clearly working for somebody else, making more. What were you making when you were with them?

[Caller]

About 96 grand a year.

[Ken Coleman]

So. So what would need to Be true for you to get back to that.

[Caller]

Honestly, find a different company.

[Ken Coleman]

Okay, but it's possible. Yes or no?

[Caller]

Yes.

[Ken Coleman]

I just want to leave that there. Yeah, let's get to it. I. I always like to kind of ask all the questions. I'm kind of like the general doctor and then she's a specialist and so she kind of sits over there and she's like rubbing her chin.

[Jade Warshaw]

You filled out the paperwork for me?

[Ken Coleman]

Yeah, that's what I am. Let's be honest. I'm the intake nurse.

[Jade Warshaw]

That's not true.

[Ken Coleman]

No, but I think this is doable, Jade.

[Jade Warshaw]

I do too. I like what you just said about the opportunity to make more. And if I'm you, I'm getting on that today. Ken, what's the first step? Where's. Where do you go about that.

[Ken Coleman]

It's a budget.

[Jade Warshaw]

No, I'm talking about for him to find the job.

[Ken Coleman]

Oh, sorry. I apologize. You see where I was at, you.

[Jade Warshaw]

Had already clocked out.

[Ken Coleman]

Well, no, because they know because they've not done it. They have no idea where their money's coming and going. That's the issue. Here's what I would say, Jonathan, because you're in the trades of H Vac, you don't have to stay at this current company for a 10. I mean, you go to the best situation that you can go to. So I would be really? Because you're stable now. Now I'd be looking and you learned your lesson from the last1. H vac can make really, really good money. And so you're looking everywhere, all the time, until the next opportunity comes in. The minute it shows up, walk right to. To it.

[Jade Warshaw]

Love that. So that's homework number one is we're looking for that. Homework number two is you do need a budget. We're going to make sure you get set up with an every dollar budget. It's the best way to budget because you're going to see all the things that you're spending money on and you're going to be able to pinpoint, okay, where's an area of concern? Where's an area I can cut back on? Maybe there's more at our disposal than we realize, but it's just been going out to things, I don't know, doordash, instacart, whatever. So we're going to give you the, the budget. I also wanted to know, what's your living situation? Are you renting? Do you have a house together? Tell us about that.

[Caller]

We're renting.

[Jade Warshaw]

Okay. And what do you pay every Month.

[Caller]

For rent, just under two grand. So 1980.

[Jade Warshaw]

Okay, that's a, that's a squeeze, not gonna lie. And I know you've got the kiddos, but, you know, you, you need to find something that's more along the, like 1400, 1300 dollar area so that it's not squeezing you so much. Because you told me you make five to six thousand dollars a month. And so assuming you know it's somewhere right in the middle, yeah, 13, 1400 is really your max. So I'd be thinking through what that could mean because unless you see a pathway quickly to earn more money, this rent is going to continue to squeeze you. The van. What's the van worth? You owe 23. What's it worth? Worth?

[Caller]

It's about 21.

[Jade Warshaw]

Okay. I'd be looking at getting out of that and into something a little less expensive. Take a, a couple months and save up the difference so you're not upside down and get out of that van and, and get it. Or go over to the credit union and say, hey, the van's worth 23, or I owe 23, it's worth 21. Can I get a $2,000 loan and can we add like seven or eight to it so that I can get something else?

[Ken Coleman]

Jonathan, listen real quick to what she just said. Okay? This is doable. You bust it, Go to a credit union or something, get a different loan, you know, whatever we got to do, pay this thing off because you're going to save yourself a lot of money. What's the car payment on that?

[Caller]

You guys don't want to know.

[Ken Coleman]

Yeah, we do want to know. I know. That's why I'm asking.

[Caller]

741, 783 bucks.

[Ken Coleman]

So, Jade, I, I tell him how to get rid of that car because that is a 700 raise.

[Jade Warshaw]

This is the how to. The how to is the first place I want you to try to go is a credit union because they're going to care about the fact that you're a human being. But wherever you end up going to get this loan, I want you to get this loan. Okay? So what you're doing here is you have to pay $23,000 to get clear on this, but it's only worth 21. Right? And so you need to clear that $2,000 difference. That's what you're going to get the loan for so that when it comes time to pay this off, you actually get the title. Right? That's, that's, or the, you can give the person the title who buys It. That's what we're talking about. But. But then you're without a car, right? And so the idea is, don't just get the loan for 2000. Get it for a little bit more, maybe 7000. Start looking online tonight and see what can I get that'll get us from point A to point B. This is temporary. This is not forever. This might be for a year and a half until you can get, you know, later on, add some more money with it and trade up. Okay? But look, for an $8,000 car, now you're in for $10,000 instead of $23,000. You see what I did there? And now Instead of paying 783amonth, if you can get in with a credit union with a better interest rate, maybe you're only paying 300amonth. You see what I'm saying?

[Caller]

Yeah.

[Jade Warshaw]

So that's what we want to do with the car with these credit cards and collections. Let's settle them, okay? And whenever you settle them, you're calling them up and saying, hey, I know it says, I owe you 2000 today. I can give you 700, take it or leave it, that kind of thing. And you get it in writing first. And they're going to settle with you. If it's already gone to collections, they will settle, settle. But you're gonna have to be like, white on rice. Like, you're gonna have to be on them calling all the time, because if you dealt with Betty before and Betty didn't do it, call back and talk to Shirley. And if Shirley won't do it, talk back. Call back and talk to Heather. Somebody's gonna do it for you. But you have to do your due diligence and stay on top of this.

[Ken Coleman]

The good.

[Jade Warshaw]

The only good news that comes out of this collection stuff is that you're gonna end up paying it for a lot less, but it's going to be at your expense. As far as the. The effort goes, goes.

[Ken Coleman]

Yeah. Jonathan, you can do this. Hang on the line. We're gonna get you in. Every dollar. Please just start plugging the numbers into this thing. It's so intuitive. It's so simple, and it's a game changer because you will now know where your money is going.

[Jade Warshaw]

Yeah.

[Ken Coleman]

And that is half the battle. What Jay just did for you is a huge victory to get out of that car payment and on the path to building prosperity for those kiddos. You can do this, Jonathan. We're here to help. This is the real Ramsay show. Foreign. Welcome back to the Ramsey show alongside Jade warshaw. I'm Ken Coleman. 888-825-5225 is the number our scripture today comes from Hebrews 4, verse 16. Let us then approach God's throne of grace with confidence so that we may receive mercy and find grace to help us in our time of need.

[Jade Warshaw]

Need.

[Ken Coleman]

I feel like that should be the verse for all budget meetings.

[Jade Warshaw]

Yeah, you're probably.

[Ken Coleman]

Let us approach this budget meeting with grace and confidence so we'll receive mercy. That's pretty good. And our quote of the day from Mark Twain, A man cannot be comfortable without his own approval. Classic. The man was, the man was deep.

[Jade Warshaw]

Wow.

[Ken Coleman]

He would have owned Twitter if it was a thing back then. That would. That's got a lot of depth to it. Good stuff there. All right, Paul is joining us now in Edmonton, Alberta. Paul, you are on the Ramsey Show. How can we help?

[Caller]

Thank you so much for taking my call. How are you today?

[Ken Coleman]

We're good. How can we help you?

[Caller]

So I recently got a raise at my job. I doubled my salary. I just needed to quickly Google my currency. I make 37,000 US a year. It's not a today purchase, but down the line, the reason I called was is it worthy and a worthy investment to purchase some farmland and then lease it to farmers as like a, I don't want to say passive income, but like, as another source of income.

[Ken Coleman]

All right, before we answer that, I'm guessing you've done enough research to answer this question. So give me an example of some acreage and, and how much you could lease it for to a farmer. In this scenario. What kind of real revenue are we talking about? Have you run the numbers?

[Caller]

I just know. I just only heard about like this kind of format through some of my friends. Like they worked with farmers in the past. And then like I had another friend that leased their farmland to like farmers. So it's like kind of been a reg. A short thing that kind of I got introduced to. So I wouldn't have the numbers.

[Ken Coleman]

Right. So you get my point in asking this question.

[Jade Warshaw]

Question.

[Ken Coleman]

Before we get to the financial side of this, there's just the, the good old fashioned common sense. And so it's like somebody saying, should I buy a business? Well, we want to look at your financial situation and we're going to dive into that. But, but we want to also go, what's the business? And does it have viability? And have you done a business study? And so in this situation, this will not be hard for you, but you need to go become an Expert in the numbers. In other words, it's got to be this amount of acreage, and then based on that, and it's got to have this kind of soil quality and then that.

[Jade Warshaw]

And you got to be able to buy it.

[Ken Coleman]

Well, you know, we're going to get to that part, but I'm just saying, like, even if financially you can do it, which you're going to coach him on, I just wanted him to know, is this an actual smart investment? Even if you're in position to do so, which I don't think you are. But that. That's my little quick warning. I want Jay to jump in on. On your financial situation.

[Jade Warshaw]

And I'm getting in King Coleman territory here. I don't sense that it's necessarily something you'd be passionate about. It sounds like something you just heard some folks doing.

[Ken Coleman]

Good point.

[Jade Warshaw]

And it's like, oh, maybe that can work for me. And I think that could also be a bit of a. At least an. I'll call it an orange flag.

[Ken Coleman]

And can we also say real quick, there's no such thing as passive income? No, no, it doesn't exist.

[Jade Warshaw]

That's a lie. Yeah, for sure. So back on to the other side. If we do, let. Let's say. Let's just pretend for. For. I can't say what I was gonna say. Let's just pretend that you had vetted this out and you had some numbers, okay. And you said, yeah, I've looked into this. I can make X amount of dollars. Then my next question to you would have been, okay to buy these acres of land. And then if you would have said, well, Jade, it's going to cost me $400,000 to get the land. Da, da, da, da, because I need at least this many acres. And I would have said, okay, how are you going to pay for it? And so I think that's where we get into the numbers, nitty gritty of this, which is you're making 37,000 a year. I would never tell you to invest in 400,000 and go into debt for it. I would say the first line of your investing needs to be you investing 15% of your income. Income, and that's steady. And that's like your kind of country road of investing. And then on down the road, if there's other things that you're interested, like real estate or land, that sort of thing, I would say, listen, the idea is to pay cash for it. And that's really, really, really the best way to purchase land in real estate is in cash. So I like that you're thinking about more ways to earn money. I like that you're kind of creative in what that could be. It's not just, I don't know, kind of the typical route, which is cool. But I think that you have a lot of work to do and a lot of study on this.

[Caller]

It was never something that I was gonna put like a, like be in debt for. It was always gonna be something that. It would be a cash transaction but that would be like 10 years. Like it's not like great.

[Jade Warshaw]

I love doing your homework.

[Caller]

I don't have that money today. I don't have that money today.

[Ken Coleman]

I love the question.

[Caller]

It would just be some, it would just be something that like.

[Ken Coleman]

Yeah.

[Caller]

You know, given with the recent bump in income and then like I've been already investing on the side and whatnot.

[Jade Warshaw]

Okay, good.

[Caller]

Yeah.

[Ken Coleman]

Paul, I was just telling Jade this during the show breaks today. I'm, I'm kicking around an idea. Friend brought me an investment opportunity. I've never invested in something like this before and I am doing a lot of due diligence. I've had some really smart guys that have done things like this before that are my friends and I'm going take a look at this. What questions do I need to be asking? So the advice I'm giving you, I'm actually taking and I, I would never want to make any kind of investment. Investment. Yeah, that I even. What's. This is what we teach by the way, in mutual funds, everything. We want you to sit with a smartvestor pro multiple people who do you connect with chemistry. Do they have a heart of a teacher? Do you understand what you're doing so that you can make your decision? They're not telling you what to do. You are telling them what you'd like them to do with your money. And so this thing on farmland, My advice is just do your homework and know it inside and out. Know what the risks are, are. Know what the upside is. And so that when the time comes and you've got cash and, and you can do it. So really appreciate the call young man. I, I love the forward thinking. Let's get in one more quick call. Andrew is joining us in Indianapolis, Indiana. Andrew, how can we help?

[Caller]

Hey, thanks for taking my call.

[Ken Coleman]

You bet. We got about three minutes, so make it fast.

[Caller]

All right, I'll make it quick. All right. I just wanted your guys opinion on giving say friends or family financial advice. I was approached by my mother in law, gave her some advice. She's kind of thinking about taking it the more I talk to her.

[Ken Coleman]

Well, the key is she approached you. My answer is don't give it unless they ask for it.

[Caller]

Well, and she did.

[Ken Coleman]

Yeah. Good for you.

[Caller]

It seems like a no. It seems like a no brainer based off what I've learned from you guys. And I absolutely appreciate that. But part of me is going, well, if she does it and doesn't do it right and it doesn't work out, then she comes back to me and says, you told me to do this.

[Jade Warshaw]

Listen, that's our job every day, kid.

[Ken Coleman]

And I. Yeah, but it's interesting that you say that because the advice that we give on here, if somebody does it the way we tell them to, then we're not worried about something. So what, what was the advice that you gave her?

[Caller]

Well, she's got a. She's paid a car payment and miraculously, somehow, I'm not sure how she timed it just right. She's got a lot of equity in said car, but also has about the same amount of credit card debt and she doesn't really drive much. And the numbers are there to make it work to sell this car, pay off the credit card debt, buy four or $5,000 car to do the minimal driving that she does, and then pile up that money to maybe buy a better car or work on her mortgage.

[Ken Coleman]

The only way that doesn't work out is if the four to $5,000 car she buys is a lemon. So this is where you as a son in law can get massive son in law points and go, hey, I will do the legwork or help you get a mechanic who will be willing to see said cars and don't buy any four to $5,000 car that the person won't let you. You take it to the mechanic and you just walk her through that and guard. I just don't see how that turns out bad, do you?

[Jade Warshaw]

No, I don't. I really don't. It's really up to how they work out the advice and if they take it to the letter and to the T. Yeah.

[Caller]

And that's where we're struggling. She keeps sending me links for cars that are like 8 or 9,000. I say you can't afford that. You need to lower your budget.

[Jade Warshaw]

I mean the hard part for where you're sitting is again then if they've asked for advice, you offer, you offer the advice. And then after that there, there comes a time where you do kind of have to go, okay, now my hands are off of it. If you choose to do it great. If you don't, if you need help, I'm. I'm here to help you. But what I'm not going to do, and I'm going to say this very carefully because we're on air, you cannot. For people asking for advice, you cannot be what I call an ask hole.

[Ken Coleman]

Boy, I'm glad you slowed that down.

[Jade Warshaw]

Because an ask, not you, is there a person who asks the same thing over and over and over to avoid actually doing okay? And that's annoying. And so if you feel like it's getting to the point where this person is being an ask hole.

[Ken Coleman]

See, you see how I stepped in there?

[Jade Warshaw]

Then you go, okay, I've given you the advice to you what you do.

[Ken Coleman]

I like that. I think that needs to be your next little product. I think it needs to be some type of a money bumper sticker that you sell Jaden a T shirt. I think a lot of people would like to wear that. I'm afraid to say it because I know I'll mess it up and the FCC will not be happy.

[Jade Warshaw]

We hit that k pretty hard.

[Ken Coleman]

Oh, we did. Hey, thanks for the call, Andrew. Thank you, Jade, for always being awesome. Thank you, Kelly and the team for keep us on the air. Thank you, America. This is your show. This is the Ramsey show. Sam.