The Key to Financial Success: Slow and Steady

Summary

The Ramsey Show: Episode Summary Title: The Key to Financial Success: Slow and Steady
Host/Author: Ramsey Network
Release Date: February 14, 2025

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Introduction

In this episode of The Ramsey Show, hosts George Camel and Ken Coleman delve into various financial challenges faced by listeners, offering actionable advice rooted in the principles of slow and steady wealth-building. The episode emphasizes patience, disciplined budgeting, and strategic decision-making as the cornerstones of financial success.

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Listener Call Highlights

1. Mary from Miami: Navigating an Illegal Home Purchase [02:09]

   Mary's Dilemma:

   Mary and her partner purchased a home in April 2023 using a USDA loan. They later discovered that the property was illegally built without proper permits, leading to structural issues like mold, sinking floors, and leaning walls. Despite following standard procedures with inspectors and real estate agents, the illegality went unnoticed.

   Advice Provided:

   Ken Coleman responds emphatically, advising Mary to take immediate action against the builder and inspector, labeling the situation a "scam." He urges her to "stand up and fight" by suing the responsible parties, emphasizing that bankruptcy is not the solution. George Camel reinforces this by suggesting Mary consider selling the property to address the bad collateral.

   Notable Quote:

   Ken Coleman: "Mary, Mary, Mary. It is time for you to get real, seriously mad and get going with it... I'd have the builder begging for mercy because he is liable, the inspector is liable, and your lawyer is a scumbag." [04:31]

2. Landon from Memphis: Balancing Emotions and Investments in Vehicle Purchases [10:36]

   Landon's Concern:

   At 27, Landon feels conflicted about his recent purchase of a $35,000 Mercedes S-Class. Despite being in Baby Step 7 of the Ramsey Plan, he worries that the car depreciates quickly and restrains his ability to invest in appreciating assets.

   Guidance from Hosts:

   George Camel reassures Landon, highlighting that at his age, a significant portion of net worth typically resides in the home. Ken Coleman encourages Landon to reconsider his emotional attachment, suggesting that his happiness lies in financial peace rather than material possessions.

   Notable Quote:

   George Camel: "You're in your live like no one else era... by the time you retire, your house will probably be a third of your net worth." [13:30]

   Ken Coleman: "I mean, listen, you've been shoulding all over yourself and you need to stop." [15:08]

3. Casey from Lexington, Kentucky: Investing in Business vs. Buying a House [24:31]

   Casey's Situation:

   Casey and her husband are nearing the completion of Baby Step 2 and contemplating whether to invest in expanding his restaurant business or save for a down payment on a new house. Given the fluctuating income from the restaurant partnership, they seek guidance on prioritizing their financial goals.

   Advice Offered:

   Ken Coleman advises prioritizing saving for a house before investing further in the business, especially considering the inherent risks in the hospitality industry. George Camel emphasizes the importance of stabilizing income and building a substantial down payment to ensure financial security.

   Notable Quote:

   Ken Coleman: "And I think that would be the advice I would give your hubs there. Let's move forward on a stable plan to get a good house." [25:36]

   George Camel: "The income, one more reason to not go start another one... you need to do something called enjoying life." [18:43]

4. Kelly’s Voicemail: The Pitfalls of 'Get Rich Quick' Mentality [21:05]

   Kelly's Inquiry:

   Kelly seeks advice on turning $30,000 into $300,000 within a year through investments in stocks, bonds, ETFs, and day trading.

   Hosts' Response:

   George Camel rebukes the urgency and high-risk nature of Kelly’s goal, advocating for patience and steady investment. Ken Coleman and George emphasize that such aggressive strategies are likely to result in losses, urging Kelly to adopt a more disciplined approach to wealth-building.

   Notable Quote:

   George Camel: "You need patience. This guy's about to lose his butt." [21:57]

   George Camel: "We have a proverb from the Bible... 'wealth gained hastily will dwindle, but whoever gathers little by little will increase it.'" [22:46]

5. Ava from Montana: Life Insurance Strategy for Older Spouses [31:25]

   Ava's Concern:

   Ava, 25, is worried about securing long-term income through life insurance for her 40-year-old husband, fearing potential health declines that could hinder policy renewals.

   Expert Advice:

   Ken Coleman recommends Ava surrendering the inadequate whole life policy in favor of a more affordable term life insurance, emphasizing that term policies provide necessary coverage during the prime earning years. George Camel reiterates the importance of term life for financial peace, especially when building retirement savings.

   Notable Quote:

   Ken Coleman: "I would surrender this policy. After you get term life in place, the goal is to get self-insured." [32:05]

   George Camel: "You can find happiness in financial peace because of a lack of stress, but it's not going to come from riding that motorcycle while you're in crippling debt." [60:02]

6. Ashley from Austin, Texas: Managing IRS and Credit Card Debt [36:11]

   Ashley's Challenge:

   Ashley and her husband have accumulated $62,000 in debt, including $3,000 in IRS debt. With a mortgage of $1,800 and monthly expenses totaling $9,600, they struggle to make meaningful progress despite following the snowball method.

   Solutions Offered:

   The hosts stress the necessity of increasing income and reducing expenses. Ken Coleman suggests that Ashley's husband's inconsistent income pattern warrants strategies to stabilize earnings. Both hosts encourage prioritizing debt elimination by potentially downsizing or seeking higher-paying opportunities.

   Notable Quote:

   Ken Coleman: "The rule of thumb for you is to do something that impacts both short-term and long-term benefits." [38:14]

   George Camel: "This feels like you need to go sell the house tomorrow... but don't focus on one alone." [39:12]

7. Brian and Taylor from Greeley, Colorado: Achieving Debt Freedom [64:07]

   Their Journey:

   Brian and Taylor started with $102,361.45 in debt in May 2021. Through disciplined budgeting and adhering to the Ramsey Plan, they paid off the remaining $38,727.90 within 15 months, becoming debt-free.

   Inspirational Outcome:

   The couple shares their strategies, including meticulous tracking of expenses and eliminating unnecessary spending. Taylor emphasizes the importance of confronting financial mistakes and maintaining accountability through visual progress trackers.

   Notable Quote:

   Taylor: "We had a big mistake... we pulled out $70,000 from our retirement as a down payment on our house before Ramsey." [66:25]

   George Camel: "Even if you get a late start in your 50s, you can still turn this around and retire with dignity." [67:54]

8. Michael from New York: Investing Wedding Gifts [75:16]

   Michael's Dilemma:

   Newly married, Michael received $45,000 in wedding gifts and seeks advice on budgeting and investing this windfall, along with starting an emergency fund.

   Actionable Advice:

   George Camel advises setting aside $20,000 as an emergency fund and investing the remaining $25,000 in a high-yield savings account or retirement vehicles like IRAs. He emphasizes the importance of not letting the money "sit in a checking account" and encourages a disciplined approach to maximize growth.

   Notable Quote:

   George Camel: "Get on a budget. Seriously, how are you supposed to save money if you don't know how much you're spending in the first place?" [59:51]

   Ken Coleman: "Don't let that burn a hole in your pocket... Let that 20 grand be an awesome start." [77:36]

9. Paige from Oklahoma City: Inherited Property – Sell or Invest? [80:32]

   Paige's Question:

   Paige inherited a home worth approximately $180,000, with a consolidation loan of $15,535 tied to a Mustang convertible. She seeks advice on whether to sell the property and reduce her primary mortgage or continue renting it out.

   Expert Recommendations:

   Ken Coleman advises selling the inherited property to eliminate a significant portion of the mortgage, thereby strengthening Paige's financial position. George Camel concurs, suggesting that the funds could be better utilized by investing in higher-return assets rather than maintaining a modest rental income.

   Notable Quote:

   Ken Coleman: "I'd sell the house and knock that mortgage of your actual home in half." [82:30]

   George Camel: "You could take that $180,000, put it in an investment account and make the same amount without the hassle." [83:05]

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Conclusion

Throughout the episode, The Ramsey Show reinforces the philosophy that financial success is achievable through deliberate, steady actions rather than impulsive decisions. By addressing real-life scenarios, the hosts provide listeners with practical solutions to overcome debt, build savings, and invest wisely. The recurring theme emphasizes patience, disciplined budgeting, and avoiding high-risk strategies to ensure long-term financial stability.

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Key Takeaways

• Fight Financial Scams: Stand firm against fraudulent practices and seek legal recourse when necessary.
• Emotional Spending vs. Strategic Investments: Align purchases with long-term financial goals rather than immediate emotional satisfaction.
• Prioritize Savings Before Investments: Solidify financial foundations like emergency funds and mortgages before venturing into additional investments.
• Debt Snowball Method: Consistently tackle smaller debts first to build momentum towards eliminating larger ones.
• Discipline Over Urgency: Avoid "get rich quick" schemes; focus on steady, compound growth through informed investment strategies.

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Notable Quotes

• Ken Coleman: "Mary, Mary, Mary. It is time for you to get real, seriously mad and get going with it..." [04:31]
• George Camel: "You're in your live like no one else era..." [13:30]
• Ken Coleman: "I mean, listen, you've been shoulding all over yourself and you need to stop." [15:08]
• George Camel: "You need patience. This guy's about to lose his butt." [21:57]
• Taylor: "We made a big mistake. We pulled out $70,000 from our retirement as a down payment on our house before Ramsey." [66:25]
• George Camel: "Happiness is not in stuff. You can find happiness in financial peace because of a lack of stress..." [60:02]

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This comprehensive summary encapsulates the key discussions and valuable insights from the episode, providing listeners with a clear understanding of the financial principles advocated by George Camel and Ken Coleman.

Transcript

[Ken Coleman]

Foreign.

[George Camel]

From the Ramsey network. This is the Ramsey show where we help people build wealth, do work that they love, and create amazing relationships. I'm George Camel joined by number one best selling author, Mr. Ken Coleman. And we're taking your calls at 888-255-2225. We' with your money, making more of it, keeping more of it, spending less, all of the issues. And Ken is the man when it comes to how do I make more income because that is my greatest wealth building tool. Maybe that's switching jobs mo money, new career paths. There we go, some short term side hustles. Whatever it is, we want to help you make the most of your money.

[Ken Coleman]

Happy Friday, sir.

[George Camel]

You as well.

[Ken Coleman]

Do you have a. Do you have a brand new bomber jacket?

[George Camel]

I always try to impress Ken with my wardrobe.

[Ken Coleman]

Like this is one I haven't seen before.

[George Camel]

He looks impressed. I.

[Ken Coleman]

It's a good look.

[George Camel]

It's a dark chocolate, if I'm gonna be really honest. Ken, I just came down the from our event center where we have our money and marriage event and I'm looking out at some lovely couples who came.

[Ken Coleman]

We.

[George Camel]

We have joined us.

[Ken Coleman]

We have a actually really good looking. I was looking at them before the show. It's a pretty good looking.

[George Camel]

Say it like it's rare, Ken.

[Ken Coleman]

Well, it is rare, I'll be honest. But today a kid. We've got a great looking group out there. Full studio, lobby. We're gonna have fun today. That's what George and I do. We're gonna coach you, but we're gonna have some fun. So, you know, this stuff doesn't have to be dour.

[George Camel]

As I say, if we don't laugh, we cry.

[Ken Coleman]

And by the way, I got to say one other thing on the bomber jacket, it matches your beard perfectly.

[George Camel]

Ken, I need to just carry you in my pocket just to compliment me. Thank you, sir.

[Ken Coleman]

Your pocket's too small for me to fit in. I'm a small man.

[George Camel]

True story. Skinny jeans will do that.

[Ken Coleman]

That's right.

[George Camel]

All right, Mary's up first in Miami. What's going on, Mary? How can we help? Oh, we. There we are.

[Mary]

Hello.

[George Camel]

Yes.

[Ken Coleman]

You sounded like a monster for a second, but now we got you back. Okay.

[Mary]

Okay, great. We actually were sold a home illegally, and we are wondering if we should claim bankruptcy.

[Ken Coleman]

Tell us a little bit more. Someone sold you a house that they were not legally allowed to sell you. What happened?

[Mary]

So we bought the home in April of 2023, and we wanted to get some things done, like fencing and encapsulate the crawl space underneath. And we learned that when we went to go get the property surveyed for the fencing that the property didn't exist. And so there were no permits. There's no CO on the house.

[George Camel]

What do you mean the property didn't exist?

[Mary]

They told us the property didn't exist in the county. There was no house that was on that property.

[George Camel]

I'm confused. You bought a house sight unseen?

[Mary]

No, we bought the house. We saw the house. The county had no idea the house was built.

[George Camel]

Oh, so the house was illegally built on that land in the first place with no permits, and then that person sold it to you. How did you even go through the closing process? Was it just done through the seller?

[Mary]

No, it was done through all of the bells and whistles that you're supposed to do with inspectors and real estate agents and lenders and everything. And they still sold it to us.

[George Camel]

I mean, aren't there titles to be cleared? I mean, I'm just so confused how nobody caught this.

[Mary]

Yeah. So the lenders were in the bylaws of our contract. They were supposed to get the CO and obtain it five days after closing, and they never did. And then we didn't find out about all of that. This is our first home. We were first time home buyers, so we learned a lot in this process.

[George Camel]

What'd you pay for it?

[Mary]

259.

[George Camel]

And you got a loan on that?

[Mary]

Yes, it's a USDA loan.

[George Camel]

Okay, how much was the loan for?

[Mary]

It was for 259.

[George Camel]

So you put nothing down with the USDA loan?

[Mary]

No, we did. We did put down 12,000.

[George Camel]

Okay.

[Ken Coleman]

So why are you having to file bankrupt? I get what we just heard. I'm now understanding that, but feels like a lot of people dropped the ball and it was before you. And so this has got to shake out somehow. So what, what, what have you done so far? What do you know? What do you not know?

[Mary]

So basically we have a lawyer on it now. We tried to get help without a lawyer and tried to talk to the builder and gave him all the documents and tried to actually get him to agree to buy back the house. He obviously did not agree to that. In the process of all of this, the house is actually. It was creating more mold. The floors are sinking, the walls are leaning. We're starting to see.

[George Camel]

Did you get an inspection?

[Mary]

We did, yes.

[George Camel]

And they caught none of this?

[Mary]

They caught none of it.

[Ken Coleman]

This is a scam.

[Mary]

Yeah, yeah.

[George Camel]

Was the inspector friends with the builder?

[Mary]

We are not sure, but seems like it.

[Ken Coleman]

So this wasn't a resell, somebody else living in it. This was. A builder built this essentially as a spec house on that property, as a brand new home.

[Mary]

He said it was a brand new build, and he actually was on a 1950s foundation.

[Ken Coleman]

Oh, of course. Do you have a good lawyer?

[Mary]

We're not sure at this point, nothing has happened and we're.

[Ken Coleman]

No, no, no. Hold on. Hold on a second. Okay. He's now your law. Your lawyers dragging this out?

[Mary]

Well, the lawyer's not dragging it out, but there's not really a lot of motion happening, and we're just. We just keep paying him.

[Ken Coleman]

Mary, Mary, Mary. It is time for you to get real, seriously mad and get going with it. Fire the lawyer. Now. You are getting jerked around like I've never even. I can't remember the last time I heard a story like this. And I feel bad for you, but you are going to have to stand up and fight. So you're. You're. The builder screwed you, the inspector screwed you. Sounds like your lawyer is screwing you over. And you are the common denominator in this. And I hate that this is happening, but I got to tell you, George, if I were in this situation, I promise you, I'd have the builder begging for mercy because he is liable, the inspector is liable, and your lawyer is a scumbag. I could go take care of this in court, and I could get a law degree out of a Fruit Loops box and take care of this situation. Am I right, George? Am I missing anything? No.

[George Camel]

This is The Ken Coleman, Esq. Energy you need.

[Ken Coleman]

I'm more pissed off than you are, Mary. This is America.

[George Camel]

I'd be taking that builder to the cleaners with a scary attorney right now.

[Ken Coleman]

I'd go to the local news. They love this crap. This is.

[Mary]

We tried the local news. They told us it was a legal issue.

[Ken Coleman]

Oh, my gosh. Okay, Mary, all you do is make excuses for why you're getting abused.

[George Camel]

What? Okay, so what's the ramifications here of you living in a home that has no record? Are they going to evict you?

[Ken Coleman]

I assume you can't even live in it.

[Mary]

No, we can't live in it. So we actually don't live in it.

[George Camel]

Are you renting with staying family? Okay, so you're renting right now, but you still make payments. Have you talked to the lender that they basically have bad collateral here?

[Mary]

Yes. They said they didn't care.

[George Camel]

They don't care. You still owe us the payment every single month.

[Mary]

Yes.

[George Camel]

And you can't sell It I think your only way out of this. And again, I'm not an attorney. This is for your attorney to deal with. You gotta sue this builder to get your money back.

[Ken Coleman]

Get an attorney.

[Mary]

What we're trying to do, get rid.

[George Camel]

Of your current, but do not file bankruptcy. That's not the solution here. The solution is to take this builder to court, sue them, potentially get the inspector involved because they clearly can't do their job well, and then collect on whatever the settlement is. I wish I had better news. I mean, we have no power in this. But I'm going to tell you, don't do anything drastic like bankruptcy at this point. Just gonna have to float the payment until this gets solved. Which would light a fire under me.

[Ken Coleman]

I wouldn't even float the payment. I'd be sitting in the. I'd be sitting in the banker's office, the lender going, I'm not paying you a cent because all of you are going down. But after I got a lawyer who had a brain and who wasn't going to take advantage of you guys.

[George Camel]

Yeah, I think a one find a new attorney.

[Ken Coleman]

New attorney with a backbone. Somebody who wants to destroy somebody. This is wrong.

[George Camel]

What a weird situation.

[Ken Coleman]

Oh my gosh, I got a headache.

[George Camel]

Thanks for sharing, Mary. I hope it works out for you guys. This is the Ramsey Show.

[Dave Ramsey]

Statistics show that half of Americans don't have enough life insurance or they don't have any at all. I don't understand this, John. Why don't people want to take care of their family? They think they're not going to die or something.

[Ken Coleman]

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

[Dave Ramsey]

That's a gut punch.

[Ken Coleman]

For decades, Dave, I've sat across people who've lost a spouse, they've lost somebody important to them.

[Dave Ramsey]

Me too.

[Ken Coleman]

They don't know what to do next.

[Dave Ramsey]

You're going to have a crisis here. You know, you got two options. While you're sitting and talking to a young widow, she's concerned about how she's going to invest all this money properly and not mess this up. Or she's concerned how she's going to eat tomorrow. That's exactly these are the two options. It's saying I love you to your family. Term life insurance. Jeff Zander and the team at Zander Insurance makes it easy and affordable. I've used them personally for 25 years, they're the only people I trust. Go or call 800-356-4282.

[George Camel]

Welcome back to the Ramsey Show. I'm George Camel joined by Ken Coleman. Open phones at 888-825-5225. If you guys want to take control of your money this year, there is no better way to do that than by making a budget. It sounds simple. It might sound overwhelming. I don't know. But here's the deal. We created an app to make it easier than ever. It's called EveryDollar. You can go download it in the app store for free or go to everydollar.com to get started. And it will give you such peace of mind to look in that financial mirror and just know the reality of your situation and how to move forward. And that's exactly what this app is going to do for you. Be sure to check it out. Landon is up next in Memphis. What's going on, Landon?

[Landon]

Hey, I appreciate you all taking my call.

[George Camel]

Sure. How can Ken and I help?

[Landon]

So this is probably a really stupid question, but I'm a tight wad, so I got to ask it anyways.

[George Camel]

Okay.

[Landon]

So I'm in baby step seven. My wife and I, and we're 27. And really the problem with my question is I feel like I just have too much. My net worth wrapped up in my house. But I just recently bought a Mercedes S Class, maybe a day or two ago. And just emotionally, to me, feels like I spent way too much money on something that goes down in value. And it just eats me up thinking about what I could put that money in that would go up in value. And so my question is just, should I take this stupid car back?

[George Camel]

Well, let's talk about the. What you spent on it.

[Landon]

So after taxes and fees and all that, you know, junk is about 35 grand.

[George Camel]

All right. And what's your household income?

[Landon]

Last two years, I've averaged about 250.

[George Camel]

Well, there's some ratios for you that puts it in perspective. How much do you have tied up and everything with wheels and motors in your. In your house right now?

[Landon]

Probably about 45 grand, counting the Mercedes.

[Ken Coleman]

Yeah.

[George Camel]

Okay.

[Ken Coleman]

You're driving an older car for the other car.

[George Camel]

Dave would have said you should have bought a nicer car. You're not doing anything.

[Landon]

Both of my cars outside of the Mercedes are probably worth ten grand total. I understand, like, ratio wise, it sounds okay, but emotionally, it just doesn't. It doesn't feel right to write a check when I could. Whichever something that could go down something that goes down in value when I could put that in, you know, something like some mutual funds, retirement, whatever.

[Ken Coleman]

All right, let me ask you a quick question, Landon. And you're seem like a very even keeled, level headed person, so this may be difficult for you to answer, but have you ever acted out of emotion before and realized that your emotion was wrong?

[Landon]

Sure.

[Ken Coleman]

All right, so your emotion is wrong on this Mercedes. Well, your emotion's wrong.

[Landon]

I mean, intellectually I get that. Like I do get that.

[Ken Coleman]

But wait a second. Wait, wait, wait, wait, wait. You started off and said it was all emotional and I, I just destroyed the emotional argum on your behalf, by the way, and now you want to go intellectual?

[Landon]

Well, what I mean is like my neck. So basically, all in, all in the worth, about 750 and about 550 of that is in my house. Okay, so it just feels like cash, but cash wise, I feel like 35 grand is rich out of the cash that I have available is what I mean.

[Ken Coleman]

It's not.

[George Camel]

Landon, there are people who have a negative net worth who bought more expensive cars than you today. And so just know that in the grand scheme of life, it's gonna be okay. And here's the deal. When you're young, naturally more of your house is gonna make up your net worth. It might be 50, 60, 70, 80% when you're young, but over time, compound growth with your investments will catch up. And so by the time you retire, your house will probably be a third of your net worth. And you're right, that car will be in an impound somewhere 30 years from now. And that's okay. Stuff is stuff.

[Landon]

You wouldn't, you wouldn't say, go buy $10,000 on, you know, Toyota Camry or something.

[George Camel]

You're in your live like no one else era. You said you have a paid for house, right? You're in baby step seven.

[Landon]

Yeah.

[George Camel]

Then what's the point of money?

[Ken Coleman]

You're scared to death over nothing.

[George Camel]

There's three things you can do with money, Landon. You can give it, save it, spend it. And if you just save it, you're going to drive yourself crazy. If you just spend it, you're going to end up broke. And if you just give it, you'll be a great philanthropist but unable to retire. And so it's wise to do all three. And what you're experiencing is something I experience as well, which is needing to flex this muscle of spending after you've been so aggressive toward a financial goal of paying off the house or Investing. And so this is something I struggled with when I wrote. When I stroke a check for my wife's last car we bought her, it hurt my soul. I've never spent that much money on anything outside of a house.

[Ken Coleman]

I remember that.

[George Camel]

And Ken remembers I was talking to him about it. But over time, you'll look back 10 years from now and go, remember when I was stressed out about buying a $35,000 car? I'm sure Dave Ramsey had the same experience.

[Ken Coleman]

Yeah.

[George Camel]

Now Dave. Dave's cars are worth more than my house. And so it's okay to have nice stuff as long as you understand that it's a toy that goes down in value. It doesn't make or break you. Money just magnifies who you are. And it sounds like you are right on track.

[Ken Coleman]

What year. What year is that Mercedes. And how many miles?

[Landon]

20, 18. It's about 80,000, 85,000.

[Ken Coleman]

Yeah, it's totally fine. I drive a used Mercedes as well. If you take good care of it, it'll last forever. Is a little bit more expensive to keep up. Yes, but you've got it. I mean, listen, you've been shoulding all over yourself and you need to stop.

[George Camel]

Keyword should. Just for those listening who weren't sure what Ken just said.

[Ken Coleman]

I know exactly what I said. And we all tend to should. I know what he said. Either should. But I'm using it very purposefully. My therapist helps me with this.

[George Camel]

It's called double entendre.

[Ken Coleman]

Stop shoulding on yourself. I should have done this and I should have done that. That's the idea. And so you can sit there and play that game and talk yourself into another five thousand dollar car. Sounds like you got two five thousand dollars cars or somewhere in that range. So you do whatever you want to do. You can take the car back and if that allows you to sleep better. But I think you're not addressing what's really going on. And what's going on, George, this is more your lane than mine. Although I understand it. I just think there's a deep rooted shame in this that I'm not.

[George Camel]

I'm not allowed to have this night. Something this nice.

[Ken Coleman]

That's what.

[George Camel]

I don't.

[Ken Coleman]

I don't think it's fear. I think it's shame. I think he's got shame. And I think you got to confront that.

[George Camel]

Did you grow up with money, Landon?

[Landon]

Yeah, maybe. My parents had some money for sure.

[George Camel]

So what was the what?

[Ken Coleman]

What?

[George Camel]

You know, we say behaviors, a language. What. How did the way they handled money Influence you.

[Landon]

Well, I'll tell you what. Honestly, what I think it is is honestly that I've just been so aggressive since I was 18, because, I mean, you know, just doing this since I was 18 and, you know, doing this throughout marriage that it almost feels like, you know, I need to stay aggressive. You know what I mean? And so, you know, we just fought and clawed so hard to house off and the whole deal.

[Ken Coleman]

Yeah.

[George Camel]

What does your spouse think about this?

[Landon]

Oh, she legitimately. We went up to the dealership and she said, buy whatever you want. I'm tired. And went home.

[Ken Coleman]

Good for her.

[George Camel]

That's a good woman right there.

[Ken Coleman]

Good woman. By the way, let me. Let me just ask you, how long you been familiar with Dave and his teachings and what we do here?

[Landon]

Since I was probably 12.

[Ken Coleman]

All right, I want you to finish a sentence for me. Okay. You ready?

[Landon]

Sure. Sure.

[Ken Coleman]

Live like no one else so that later you can live like no one else. All right, then.

[George Camel]

Now swap that with Drive. Drive like no one else. Drive the crappy car. So later you worked. Drive like no one else.

[Ken Coleman]

Worked really hard. You worked really hard to get to a point where you can buy a $35,000 Benz. And by the way, your wife has worked really hard, too. And she deserves to go on date night with you in a car that you don't have to pedal like Fred Flintstone. Hey, there he is. Did you hear that laugh? That's the first time on this entire call I felt like we got the real you who wasn't so uptight.

[Landon]

Well, what's so funny about that is that's not far off from what I'm driving outside of the bins.

[Ken Coleman]

I know, I know.

[George Camel]

I don't get rid of that car.

[Ken Coleman]

This guy, he thinks. Do I. Do I come across really dumb? Because when you tell me you got two cars worth $10,000. Those are Fred Flintstone cars. I didn't have to do a lot of deduction, my man. And so she deserves better. She deserves better.

[George Camel]

You.

[Ken Coleman]

If you want to drive a piece of. If you want to drive a turd on wheels, then that's up to you. But she doesn't deserve that.

[George Camel]

Can we agree?

[Ken Coleman]

It's Valentine's Day, for heaven's sakes.

[Landon]

I agree with you.

[Ken Coleman]

Relax. You worked really hard. It is impossible to. For me, George, to conceive of a scenario where Landon does something dumb with money.

[George Camel]

Yeah, you're. I mean, you are spot on our parameters here. It is. If all the things with wheels, motors in your life adds up to more than Half of your annual income. You're off track. That's simply too much. You are not even close to that. And again, like ratios, Dave, Buying a nice car is like me buying a biscuit. And so you have to understand the ratios look different when you have a very high income. Your net worth is going to continually grow. You're 27. You got another 30, 40 years of working for you and investing to build wealth. And so in the meantime, you have to do something called enjoying life. And I'm scared because you're kind of like me. I'm wired to go. But if we didn't eat this month, we could invest that in a good growth stock mutual fund. It can make 12% over. You can't live your life like that. You gotta let go.

[Ken Coleman]

Speaking of letting go and living life, George, how do you eat a biscuit? What do you put on your biscuit?

[George Camel]

One bite at a time.

[Ken Coleman]

Oh, really?

[George Camel]

Yeah.

[Ken Coleman]

No, no butter, no jam. I'll do a little butter, no jam, no honey.

[George Camel]

It's like a chicken biscuit. What are we talking?

[Ken Coleman]

I'm asking you. It's your biscuit.

[George Camel]

Yeah. I'll do half butter, half jelly. Best of both worlds. How about you?

[Ken Coleman]

Oh, I like the jam. A lot of jam.

[George Camel]

Jam's your jam. I respect that. Well, glad we could at least help Landon get over his emotions. This is the Ramsay Show.

[Dave Ramsey]

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[George Camel]

Welcome back to the Ramsey Show. I'm George Camel here with Ken Coleman taking your calls at 888-825-5225. You know we've got a phone number to call, of course, and we get a lot of voicemails on that. And so occasionally we like to a little segment called sorry, we missed your call, where we listen to the voicemail and respond without them. Without having to talk to them.

[Ken Coleman]

Yeah.

[George Camel]

So let's see what we have today. What do you got for us, Kelly?

[Ken Coleman]

I actually am trying to get some financial advice on If I have $30,000, which I do, and another thousand to fifteen hundred a month, what would be the best move or strategy to turn that 30,000 into 300,000 in one year? The last month or two, I've been.

[Landon]

Learning stocks, bonds, ETFs, options, day trading.

[Ken Coleman]

Still got a lot further to go on acquiring knowledge whenever it comes to that, but just wanted to get some info from someone that actually knows what they're doing and talking about. Thank you very much.

[George Camel]

All right, good question. My first thought, Ken, was you don't need knowledge, you need patience. This guy's about to lose his butt.

[Ken Coleman]

Yeah, but he wants to. He wants to 10x that. 30g's.

[George Camel]

30 grand to 300 grand in one year. Go to Vegas, my man. I was going to say hit the craps table. Good luck.

[Ken Coleman]

Highly, highly prospective investment. It's a quick turnaround.

[George Camel]

Yeet. My question is always with these. Why? Why the urgency and the desperation to turn 30 into 300? What is this get rich quick mentality? Where is it coming from? Social media, Likely friends. Social media. I saw a guy who posted that. He does day trading, and if I buy his course, he'll show me how to 10x my money guarantee.

[Ken Coleman]

It's the microwave mentality.

[George Camel]

You got to be a crock pot in a world full of microwaves. And this is not just my opinion. One of my favorite proverbs from the Bible, Ken, wealth gained hastily will dwindle, but whoever gathers, little by little will increase it. It's ancient wisdom.

[Ken Coleman]

Wow.

[George Camel]

You gain wealth fast, you're going to lose it even faster. And so you're going to fall in your face trying to do this. And I want you to build wealth. And I popped it into my investment calculator just to kind of get a lay of the land. Instead of one year, if you had 30 grand, you're 30. I don't know if you're in your mid-30s, let's say 30 grand, you're adding 1500amonth, 10% rate of return on average. It'll take you probably eight or nine years to get to 300 grand. And I'd much rather you gain it slow and keep it than try to risk it all by day trading or doing options trading and lose it all. So that's my take. That's our. That's the Ramsey plan is let's get rich slow. Let's build wealth the right way and not be in a hurry to do it. If you want to make more money, go increase your income. You can increase your savings rate, but trying to gamble this away is not the move.

[Ken Coleman]

I like it. I think we need a new segment called George Quotes the Bible.

[George Camel]

I would love that, actually. I like.

[Ken Coleman]

That would be great. I thought you did a good job there. The guy calls, leaves a voicemail and you drop.

[George Camel]

This is my encouragement to his name's Travis. Go read a proverb a day. You can read it in a whole month if you just do that. And it will give you the best financial wisdom money can buy. No course necessary. You can read it online for free, download the Bible app. But I'm telling you, there's just some. There's some wisdom in being the tortoise instead of the hare. We know how that story plays out. Tortoise wins every time.

[Ken Coleman]

Every time.

[George Camel]

So thanks for the question, though. Casey is up next in Lexington, Kentucky. What's going on, Casey?

[Casey]

Hello. Thanks for having me on. I understand now why people say that I have. Oh, my goodness. I forgot my question. No. Okay. Okay. So when we finish Baby step three, which I believe is a fully funded. Three to six months, right?

[Ken Coleman]

Yes, Correct.

[Casey]

Okay, so after we finish that, which should be. It's going to be a little while until we finish that, but that's like our next step. We have been discussing buying a house or putting money into our business. We're kind of business owners now. It's complicated, but I just wasn't sure what would be the best thing to buy a house or to invest in our business.

[Ken Coleman]

What's your business? Tell us a little bit about it.

[Casey]

Okay. So it's my husband's business. I'll protest it with that. He owns a restaurant and he wants another location, but more of like his own type of deal because right now he's got a few partners and it's kind of complicated, but like eventually stepping out and doing something solo down the line.

[Ken Coleman]

Yeah, that's all I needed to hear. I just wanted to know what. What we were looking at and what the investment would do. And I would not put the business investment in front of saving for the house.

[Casey]

Okay. Okay.

[George Camel]

Especially in the hospitality industry, there is immense risk in starting a restaurant.

[Ken Coleman]

Yeah. Let's see how this deal works out. Tell him to be patient. Feels like the call that George, I mean, excuse me, the voicemail we just answered. I think this is a patience deal on the, on the professional side of things. He's got multiple partners. Those at times can be, that can be tricky. And he's already got, you know, some real money and I'm guessing, guessing some sweat equity involved there. Let's learn, let's see if that proves to be successful before he chases another rabbit. There's an old phrase, if you chase two rabbits, you lose them both. And I think that would be the advice I would give your hubs there. Let's, let's, let's move forward on a stable plan to get a good house. George, tell them what we want them to do on that house.

[George Camel]

So you're, you're saving up for a down payment. That would be your next goal. After baby step three, we call that baby step three B where before you start investing, which is baby step four, you just go real hard at getting that down payment set in under two years. Is that realistic for you guys?

[Casey]

It might be a little longer than that. Just.

[Ken Coleman]

Okay.

[Casey]

The business is kind of up and down. It's not super steady.

[George Camel]

The income, one more reason to not go start another one. We don't have this one squared away, but yeah, in that case you could, what you could do once you hit baby step, once you Finish Baby Step three, just go ahead and begin investing 15% of your household income into retirement plans. And if he's self employed, there's still a lot of options out there. There's always a Roth IRA, which you can do outside of employment. There's solo 401ks. I imagine his situation, it might be different, but there's a lot of opportunity to invest and then on top of that, save up for that down payment. And once you guys have a little more stability in your life and you've got that foundation now we can figure out what's, what it's going to take to start this business. And I hope you do it with cash and just move slow.

[Casey]

That's why, that's why I'm calling you guys, because I'm like, we are terrified of debt. We did something stupid twice. We paid off eight credit cards and loans and then close them and then, then we reopened like eight more cards. So but we're about paid off and we're done with that. Like I've listened to you guys so much. Like it's such an embarrassing thing, but we're done with that. And we're just looking to the future and doing everything debt free or, you know, I know a mortgage will be taking that on, but that's when I should be do a business and, you know, and increase income. But I really want roots.

[George Camel]

I'd figure out what is a reasonable goal for this business once we are we. Once we're in the house. Okay. What's it gonna take to start this business and then figure out what that number is. And how do we start? Slow. If it's an overwhelming number. We can't afford a million dollar.

[Ken Coleman]

Are you working?

[Casey]

I'm not. No. I. I have two kids and I stay home with them and I do homeschool and.

[Ken Coleman]

Well, you're working, you're working. You're working your tail off, but you're.

[George Camel]

Not working in the business with him.

[Ken Coleman]

You're not in the business. What is his range of income been since getting involved with this partnership and this restaurant? Do you have a couple years of numbers for me? Like what he's been making?

[Casey]

Probably before taxes, probably around 35 to 40.

[Ken Coleman]

Oh, my God.

[Casey]

It varies because there's okay quarterly. But it does vary a lot.

[Ken Coleman]

Yeah. What's the high mark then? What's the highest he's made.

[Casey]

Probably 40.

[Ken Coleman]

Okay, listen to me. Okay, now, now I'm gonna go older brother, and I may be old enough to be your dad, for crying out loud. I would not be in any hurry to get in a house at all. I would be saving.

[Casey]

Okay.

[Ken Coleman]

So the advice doesn't change on the baby steps. But I would just be renting until you guys figure out what the future looks like. On this. He's not making much money.

[George Camel]

He should go be a line cook in the kitchen and make money.

[Ken Coleman]

My goodness, he could make more working at Walmart. So I really don't want you thinking about a house until we see his income get a good bit. I'd like to see close to double that income and get some stability there, George. Yeah, because I just don't want you. Here's what, here's what happens. You get into a house that you think, okay, this is gonna be right. And then something goes wrong and you guys are out of income for six months and he's starting from scratch.

[George Camel]

That is scary business and making 35 grand gross. It's gonna be hard to afford any mortgage with that.

[Ken Coleman]

Yeah.

[George Camel]

You guys, let alone rent.

[Ken Coleman]

And it's gonna be a long haul on savings. So go ahead and settle into the long haul. And you all need to figure out better income situation if this thing doesn't start to turn.

[George Camel]

We got to delay the business dream and get the income is a crisis at this point. So he either needs to opt out of this restaurant business and go get a different job, but now is not the time to start a business or buy a house. So there's option C. We got to figure out the income first. Thanks for the call, Casey. More of your calls coming up. Triple 882-55225. This is the Ramsey Show.

[Dave Ramsey]

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[George Camel]

Welcome back to the Ramsey Show. I'm George Camel joined by Ken Coleman. Open phones at 888-825-5225. It's time for our Ramsey SHOW Question of the Day brought to you by wirefi. Y Refi refinances defaulted private student loans and builds a custom loan based on your ability to pay. Now, private student loans are different than federal student loans like Sallie Mae. So if you want to learn more about this custom refinancing option and the lump sum payoff option you could qualify for after 24 months, go to yrefi.com Ramsey that's y r e f y.com Ramsey may not be available in all states.

[Ken Coleman]

All right, George. Today's question comes from Ava in Montana. She writes, I'm 25 years old and my husband is 40. Because of the age gap, I'm concerned about my financial state. If my husband passes before I do. We both work in church ministry and earn $80,000 combined. We have very little retirement or savings. I have a $350,000 whole life policy on him and the premium is $200 a month. My fear is that if he gets a term life policy, his health will decline later in life and prevent him from getting it renewed. I want a guarantee of long term income, but at an affordable rate. Is there anything available that could work in my situation? Well, George, you're Mr. Insurance.

[George Camel]

It's what they call me, Ken.

[Ken Coleman]

I mean, that's what we call you around the office. You know, I see him across the way and I go, there he is, folks. Is that my personal brand, Mr. Insurance.

[George Camel]

I do have a weird affinity.

[Ken Coleman]

So this is kind of your thing. I'll just say the whole life needs to be dealt with immediately. Get rid of that and get a good term life policy. That's going to put him well into his 60s. And at that point you guys should be fine if you do what we teach as it relates to investment. George, tell her what she needs to know.

[George Camel]

So let me go through this systematically. Number one, the $350,000 policy is not enough. You need eight, 10 to 12 times your income. And so if you're making 80K combined, maybe he, maybe that means he's making 40 or 50, I don't know. But that would be closer to half a million, six hundred thousand. And the on top of that, your whole life policy sucks. This is just making the salesperson a lot of money and it's not helping you out by paying 200amonth. Very little of that going to the actual policy, most of that into their pockets, some of it into a cash value portion growing at an abysmal rate. And so I would surrender this policy. After you get term life in place, the next question. My fear is if he gets term life, his health will decline later in life. That's, that's how it generally works. As you get older, you get closer to something called death. Getting term life won't change that. And here's the deal. Term life is for a specific term, 15 years, 20 years, 25 years. But if you follow the Ramsey baby steps, by the time that policy lapses and it's over, you will be self insured because you've been following the plan for 20 years, investing for 20 years. You paid off your house 20 years later. And so there's no fear that it's going to end. And now you're out of the money. The goal is to get self insured at that point.

[Ken Coleman]

And I'll give you a real life example. I'll use me as example. Now I know that you know, anybody that looks at me on the show, you know, I'm a picture of health. I mean I get that. And I look a lot younger than my 50 years. I also understand that.

[George Camel]

Especially if you see him on the pickleball court.

[Ken Coleman]

That's exactly right. I'm very spry, very spry for a 50 year old.

[George Camel]

He is supple and nimble.

[Ken Coleman]

Supple and nimble, thank you very much. But you know, I've got three kids and they're all teenagers and, and a wife and two doodles. So a lot of responsibility on me, you know what I'm saying? And just to really give you a real life thing here, I, I renewed mine, got a better deal because I'm, you know, is in tip top shape when I got it, probably, I don't know, eight years ago. And so that's going to carry me through to where again. Stacy would be fine if something happens. In fact, she'll be so fine, I'd be looking over my shoulder, you know what I mean? I might have to sleep in another room. Dick Van Dyke, one eye open, you know what I mean? However, and then the kids would be fine too. So in that, that's all you need for his situation is to get that retirement going and really see that compound interest. You need to call our friends at Xander Insurance, because I've done this now and Xander is, they just, it's one stop shop. You call them. I want to get good term. They're going to take care of you.

[George Camel]

They'll compare pricing, compare top companies, get.

[Ken Coleman]

You the best deals, and they guide you as to what you need. We've worked with Xander forever and so make that happen right now. Right now. And it's so cheap. I don't think people realize how affordable.

[George Camel]

Yeah, it's not going to be $200. Whole life is a ripoff. Generally, term life is a fraction of the price. And even at his age, it's going to be way more affordable. So jump on to Xander.com or give them a call. 800-356-4282. And get term life in place today. If you're listening, whoever you are out there listening, if you don't have term life in place today, do it. If anyone relies on your income, a spouse, kids, family, whoever you need to get this in place. It's not a matter of if, but when. You will eventually pass. I don't want to be the one to break it to you. And term life's not going to cause that to change. It's just going to give your family peace.

[Ken Coleman]

You can eat as many biscuits as you would like. George.

[George Camel]

I'm good.

[Ken Coleman]

Because you know your wife and daughter, she is covered.

[George Camel]

And stay at home spouses, you need a term life policy as well because it would take Mary Poppins to replace all the things you do. There you go. There's my pitch for the daycan. I had to say it.

[Ken Coleman]

I thought it was off the. Well played, well played.

[George Camel]

All right, on to Ashley in Austin, Texas. What's going on? Ashley, hi.

[Casey]

Thank you so much for taking my Call.

[George Camel]

Sure.

[Casey]

Yeah. So on it. My husband and I recently accumulated $3,000 in IRS debt starting this year.

[George Camel]

3,000, which has.

[Casey]

3,000, okay. Which has added to the financial strain we already had, which now being our total debt, $62,000 excluding the mortgage. We've been following the snowball effect method for about a year now, but it feels like we're not making much progress. We've considered, you know, changing, you know, our jobs, selling our house temporarily so we can rent and stay, or even relocating to our hometown for a more simpler, affordable lifestyle. My question is, what would you recommend as the best course of action for us?

[Ken Coleman]

Well, what's keeping you guys from making progress? Just not enough income. And you've cut everything you can cut and you just still don't have enough income to make progress.

[Casey]

I think that we probably could cut maybe groceries. That one. We haven't done the rice and beans like Dave Ramsey says, but we, we spend like $200 on groceries, you know. What's your income together? Take home after deductions. Is that 44,400 together?

[George Camel]

A year together.

[Casey]

Sorry. A month. 4,400amonth.

[George Camel]

Are you guys doing any investing right now?

[Casey]

We are not.

[George Camel]

Okay, so that's just deductions meaning like taxes, maybe health insurance, something like that?

[Casey]

Correct.

[George Camel]

Okay, so 4400amonth. And you're trying to tackle, I mean, so we're talking about a take home pay of roughly 50 grand a year and you're trying to tackle 62. And so you're going to need more income. You can slash expenses all you want. That will help. But income is the, is the biggest factor here.

[Ken Coleman]

So with this move. So you gave George and I, I think, three scenarios, right?

[Casey]

Correct.

[Ken Coleman]

Which one of those three scenarios allows you to cut expenses but also provides an opportunity for greater income both at the same time? Which one of the three options or however many you gave us?

[Casey]

Honestly, it may actually have to be combination. We work combination. We work in a job that we have a set income. That's our set income, but we do get, we work a mortgage company, so we both receive commission and bonuses on the side. We just don't take that into account. So anything we receive, we're putting it straight to debt. But I think our stock is just not enough.

[George Camel]

What's your mortgage payment?

[Casey]

1,800.

[George Camel]

Okay, so that's about, I mean, that's 40% of your income. It's definitely high. That's hurting your ability to do this. I don't think we're at a fire Moment where you have to go sell the house tomorrow. No, I would work on your income. And if nothing changes a year from now with your income, you might want to downsize to get out of this mess instead of it taking five years. Because normally 18 to 24 months, that's how long it takes people to get out of debt. Some longer if they got a, you know, big hole and not a big shovel and some less. But for you guys, we need to see this income grow to about six figures to get this knocked out in two years or less.

[Ken Coleman]

Yeah. Rule of thumb for, for you, Ashley and everybody. Listen or watching. I wouldn't make a major life change unless it has both short term and long term benefits. Because there's a lot that goes into a major change and major change when it's good in the short term and sets me up for what I want my long term to look like, that's a no brainer. Outside of that. No, I'm gonna stick and hustle and dig my way out, not just pull the parachute. That's makes sense.

[George Camel]

Yeah. But margin, we need to expand the gap here, the margin between our income and our expenses. And I think both levers are going to be necessary that puts this hour of the Ramsey show in the books. Thank you to my co host Ken Coleman, everyone in the booth keeping the show afloat. And you. America will be back before you know it.

[Dave Ramsey]

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[George Camel]

This is the Ramsey show where we help people build wealth, do work that they love, and create amazing relationships. I'm George Camel joined by Ken Coleman, host of the new show Front row seat with Ken Coleman. Be sure to check that out on the Ramsey network and on YouTube and podcast. We're taking your calls at 888-255-225. You jump in, we'll talk about your life and your money. Brett's going to kick us off this hour in Sacramento. How can we help Brett?

[Ken Coleman]

Yeah, my question is simple. Insurance agent or insurance broker? I've noticed insurance has gone way up over the last year or so and I was curious your thoughts on insurance broker versus insurance agent.

[George Camel]

It's an easy choice for me. I'm going broker all the time. Because here's the deal with a captive agent, let's say your buddy who works for, you know, rhymes with a state parm. I don't know, something like that. If they work for one of these companies, they can only sell insurance from that company. Makes sense, right?

[Ken Coleman]

Yes.

[George Camel]

Whereas a broker isn't actually selling you the policy. They're just connecting you and shopping the policies across the board from the top companies to get you the best deal. Does that make sense? So I don't fall for the marketing of these commercials. I want to know who's giving me the coverage I need at the best price. That's all it is. Super.

[Ken Coleman]

Thank you for the information.

[George Camel]

What kind of insurance are you looking at?

[Ken Coleman]

Well, I have a car. Insurance has gone way up. I have a daughter driving now. I also have an umbrella, million dollar policy and home insurance as well.

[George Camel]

Love it. Well, you're doing all the right things. Yeah, I mean, to me it's all about price. I mean, you want to obviously go with a top rated company and you know, our. We have all kinds of connections for you. If you jump on ramseysolutions.com and click on trusted pros, we can connect you to the right insurance brokers in any area from home, auto, health, whatever it is to help you sort that out. And that's, that's something I do and I, I actually reshop every year. I contact my insurance broker and I say, hey, can you reshop to make sure I'm still getting the best deal? And they'll either say, yep, you're still the best deal. I just reshopped it. Or actually we could save you a little bit of money here if we switch this policy over here. And so having someone do that work for me? Saves time, hassle, and money. Anything to add, Ken, or did I?

[Ken Coleman]

I just like how you did the little wordplay so as not to, you know, technically endorse somebody.

[George Camel]

And now I want a chicken parm is the problem.

[Ken Coleman]

Yeah.

[George Camel]

Shouldn't have said that.

[Ken Coleman]

Yeah, I do. I do. I won't say which one, but I do have. Some of those commercials are really obnoxious, and some are kind of funny.

[George Camel]

Oh, the marketing is great.

[Ken Coleman]

They've gotten into a real. It reminds me of the days when I was growing up when it was like the beer commercials were really competing to be which ones were the funniest. And I feel like we've got the big three. Insurance. Yeah, they're all really pouring the money into celebs. A lot of funny stuff. Trying to be funny.

[George Camel]

Yeah. You got Jake, you got Mayhem, you got Flo.

[Ken Coleman]

That's it. You just nailed all three. And it's.

[George Camel]

I think that's my encore career. Ken, if this doesn't work out, I'm hoping someone will get me to be some kind of character.

[Ken Coleman]

You would be a great insurance salesman.

[George Camel]

I appreciate that.

[Ken Coleman]

I think I could see you as a spokesperson, doing that in your little cute bomber jacket there.

[George Camel]

Thank you for saying.

[Ken Coleman]

You know, because you're very trustworthy. You know, you're a small guy, but you got a very, very serious.

[George Camel]

Well, I'm not intimidating. I think that's part of what makes me.

[Ken Coleman]

You're definitely not intimidated.

[George Camel]

Okay.

[Ken Coleman]

Neither one of us.

[George Camel]

I dug too far for the compliment.

[Ken Coleman]

Rock, but, no, I'm not. Neither one of us are intimidating. You run into us in an alley, and you kind of take a sigh of relief.

[George Camel]

Yes, absolutely.

[Ken Coleman]

They're like, oh, it's a. There's two little guys right there.

[George Camel]

I'm the guy that. A guy walked up to me in Costco, and he just said, hey, where's the paper towels? And I was aghast. I was like, does he think I work here?

[Ken Coleman]

What were you wearing?

[George Camel]

Just normal. I mean, an outfit like this, I didn't look like I worked at Costco.

[Ken Coleman]

He apparently thought you did.

[George Camel]

Well, of course I knew where the paper towels were. Let me walk you over there, sir. Right this way.

[Ken Coleman]

You were like. You instantly went to a spin. A point. You gave him an aisle number.

[George Camel]

Absolutely.

[Ken Coleman]

I like that, George.

[George Camel]

So I'm unbearably helpful. That's what my wife says, at least.

[Ken Coleman]

If you're ever looking for me in a Costco and you think it's me, first ask yourself, is he near A sample. Because if it looks like me and it's a sample line, it's me.

[George Camel]

Stacy's doing the shopping. Ken's doing the same.

[Ken Coleman]

That's exactly right.

[George Camel]

That's what's up.

[Ken Coleman]

That's how it goes.

[George Camel]

All right, let's head out to the phones. Brooke awaits in Syracuse. What's going on, Brooke? Hi, guys.

[Brooke]

Happy Valentine's Day.

[Ken Coleman]

Happy Valentine's Day.

[George Camel]

The first one to say that, first.

[Ken Coleman]

One to say that to us. We were starting to get our feelings hurt a little bit. But thank you.

[Brooke]

I am calling. Me and my husband are on baby step two, and we are having, like, a conflict with the principals that you guys teach. I think, where it's either the order or I'm trying to get rid of a stupid car. And we have kind of like a substantial amount of money to us that's about to come. And I really want to make sure that I apply it to the situation the best way that I possibly can.

[Ken Coleman]

How much?

[Brooke]

$5,300.

[Landon]

Okay.

[George Camel]

5,300.

[Casey]

Yeah.

[George Camel]

Okay. And how much debt do you have?

[Brooke]

So we have about 18,000 total. And then. Do you want me to break all of it down?

[George Camel]

Yeah. Go from smallest to largest in the balances.

[Sarah]

Okay.

[Brooke]

So we have a credit card that has 178 balance left, which I've been. That's my current project. And then we have a CareCredit account that has two payments of $111 left on it. We have a dental loan situation that's $1,948. We have a Discover card at $730. And then our biggest loan is a debt consolidation loan, which the stupid car is the collateral on, which is $15,535.

[George Camel]

So what's the issue here? You get this $5,300. You know, I don't know. Is it inheritance settlement?

[Brooke]

It's actually money that we had. It was uninvested, sitting in an account for the past year and a half that we kind of forgot existed.

[George Camel]

So you'll knock out your first four.

[Brooke]

Debts with that dawned on me.

[George Camel]

The smallest credit card, the Care Credit, the dental, the other credit, the Discover card, all those get knocked out instantly. And then we start chipping away at the remaining consolidation loan. Right.

[Brooke]

That seems obvious to me. But the thing that catches me is that that $15,535 loan, the car that's tied up into it is worth about 10,000. And then we also. We have one 19 month old. And then next month we are having our son and we have two cars. We have the one that's tied up in this, which is stupid. It's a Mustang convertible. And then we have a smart car. And both of these cars are uniquely stupid to have two car seats in to the point where it's almost unsafe.

[George Camel]

Yeah. Uniquely unsuitable for a child.

[Ken Coleman]

I love your emotion on the Mustang. Let me guess. The Mustang convertible is your hubby's car.

[Brooke]

Actually, no. I got a really cool job, and so I thought I should get a really cool car.

[Ken Coleman]

Good for you.

[Brooke]

Finance it.

[Ken Coleman]

You wanted your hair. You wanted to let your hair flow, huh? Come on. On the way home.

[George Camel]

Whoo.

[Ken Coleman]

Your little Tom Petty free fall.

[Brooke]

Wasn't that great?

[Ken Coleman]

Okay, well, I misdiagnosed that one.

[George Camel]

Yeah. You're underwater on the car, so you need. You need the difference in cash or from a, you know, a loan from your credit union to make up the difference to get out of this. Is that what you're saying?

[Brooke]

And this money seems to be, like, the exact right amount. And I've been praying about it. Like, what do I do?

[George Camel]

Oh, I see. You could use this money to get out of this car situation with the consolidation loan.

[Brooke]

Right. If I take that money and if I can sell the car, then I can get out of that. And that's also. Like, that payment is more than our house payment. It's like $556 a month. Then we only pay, like, 500amonth in our house.

[George Camel]

What's your income every month?

[Brooke]

We also eliminate our biggest expenses. Yeah, so last year, we made, like, $32,000. But my husband just had a job loss last year, which is why that was so low and just started a new career, so I'm not entirely sure what to expect.

[George Camel]

Yeah, you guys need a lot more money coming in. Brooke. And so I would hang on until baby's here and you and baby are home safe before I let go of this five grand. Because this might be the safety net you need for any medical bills that come up. But once that's done, I would absolutely use this money to get out of this car situation. Then hit the debt snowball on the remaining debts. Thanks for the call. This is the Ramsey show. Okay, here's the hard truth.

[Ken Coleman]

Your investment dollars could be winding up in the pockets of companies that hold positions you don't agree with. People are unknowingly putting money into tech giants and household brands that don't match.

[George Camel]

Up with their core values.

[Ken Coleman]

But here's good news. Timothy Plan is at the forefront of biblically responsible investing.

[George Camel]

That means Timothy Plan uses a strategy.

[Ken Coleman]

That lets investors chase competitive returns while staying rock solid in their beliefs. So if you're ready to invest with a clean conscience, it's time to check out Timothy Plan.

[George Camel]

Request [e-mail] to learn more or contact your financial advisor today to see if.

[Ken Coleman]

Timothy Plan is right for you.

[George Camel]

Timothyplan.com Investing includes risk, including possible loss of principal before investing, carefully consider a fund's investment objective, risk, charges and expenses contained in the prospectus or summary Prospectus. [e-mail] Read carefully before investing. Mutual funds distributed by Timothy Partners Limited and ETFs distributed by Forsythe Fund Services, LLC. People ask me all the time, George, what's your number one money saving hack? Glad you asked. Nothing makes me happier than helping another frugal friend. So here's the hack. Get on a budget. Seriously, how are you supposed to save money if you don't know how much you're spending in the first place? And that's what makes the EveryDollar budgeting app a game changer. With EveryDollar, you'll get a clear picture of your spending and from there it's easy to see where you can get more intentional cut back and save more money. So how much money are we talking here? Well, the average everydollar budgeter frees up $395 in their first budget. That's the hack. And if you ask me, I think you're way above average and you'll save even more. So what do you do when still listening to me? Go download the EveryDollar app for free and start saving more money right now. Welcome back to the Ramsey Show. I'm George Camel, joined by Ken Coleman. Open phones at Triple 882-55-5225. Hey, you do not want to miss our two night virtual event. It's called Investing Essentials, hosted by Dave Ramsey and me, George Camel. Investing can be overwhelming, it can be confusing, and it's not something you can get from a 60 second social media post. So at this virtual event, we're going to walk you through how to maximize your retirement plans, how to choose mutual funds, how to get the most out of your money, how to invest with confidence. Plus, it's the only place where you're going to hear Dave Ramsey unpack his personal playbook on real estate investing, what to look for the calculations. I mean we are going to Nerdville and back and you're going to love it. And Dave, I mean famously is a real estate mogul. He has hundreds of millions in property Investments, all in cash. And he wants to teach you how to build wealth the right way. So you're going to get clarity. You need. Join us Investing essentials. It's happening March 4th and 5th. It's virtual. You can join from anywhere. Tickets start at 199 bucks and it's worth every penny to get four or five hours of Dave coaching you. That's pretty incredible. Get yours today ramseysolutions.com events or click the link in the show notes if you're tuning in on podcast or YouTube. Sarah's up next in Rochester, New York. How can we help?

[Sarah]

Sarah, hi. How's it going? Thank you for taking my call.

[George Camel]

Absolutely.

[Sarah]

So basically my issue is I am trying to figure out how we can budget our finances because my husband is a blue collar worker on a commission based pay scale and we don't have consistent income per year. But last year he made 161,000. The year before that he made 140,000 and the year before that he made 180,000. So I would say an average of 160,000 over the last three years. And we're looking into doing the baby steps and snowballing all of this fun stuff. But right now, currently with our mortgage at $4,120, we also have a consolidation loan. Health insurance is $900 a month because through his work, it's $1,300. And the credit card debt totals $127,000.

[George Camel]

Goodness gracious. What'd you guys spend on these cards?

[Sarah]

Well, it's been a combination of like, I don't hurt me, but I put my husband's motorcycle on my card because we were trying to get the points. I know that's the worst answer you could possibly want to hear, but. So that's $18,000. And we have just multiple bills. He has $72,000 in credit card debt. And I have not including that motorcycle, it's like $34,000. I put groceries on it. I've put property taxes on it because our.

[George Camel]

So where is your actual income going if you're using the card to fund your life? You guys make great money.

[Sarah]

That's. I know, and that's the problem is it just disappears. I mean, we have, we have the, the total debt that's going out per month for all of our payments is $9,600.

[George Camel]

9,600.

[Casey]

Yeah.

[George Camel]

Does that include the mortgage?

[Sarah]

Yes.

[George Camel]

Goodness gracious, yes. What is your, so your average take home pay? I mean, it's, is it 10 grand a month, 8 grand a month?

[Sarah]

Well, I'm guessing it's like, closer to 13, because. Well, that's the average, though. That's the problem. Some months we'll have fantastic months, and some months we don't. So, like, for instance, if he has a bad couple of weeks or if he took vacation, then he gets his hourly pay.

[George Camel]

Let me make this clear. There are no vacations in your near future. Why is that motorcycle not sold?

[Sarah]

We went nowhere.

[George Camel]

You need to be going to work. You don't need to be staying home at all.

[Sarah]

Well, right.

[George Camel]

Yeah, but where's this motorcycle?

[Sarah]

Where is it? It's in the garage.

[George Camel]

Why is it not sold yesterday?

[Sarah]

That's the source of.

[Ken Coleman]

See, here's the deal, Sarah. I'm listening to this, and George will keep coaching you, but I'm fired up on your behalf. I like how fired up you're getting. George.

[George Camel]

George.

[Ken Coleman]

It's hard to tell between when you're calm when you're fired up, so it's really got to be discerning.

[George Camel]

Well, I'm often irritable.

[Ken Coleman]

You know you are, But. But what's going on here is not the irregular income. You're kind of presented this call as. My husband's got an irregular income, by the way. George and I do as well. So you're actually talking to two people that this is how our. We are paid as well. And. And so your issue is not that. Your issue is you're overspending. You're not living within the means. Whether it's regular or irregular, that's the problem. And so what happens is, because you put all this stuff that you couldn't afford on credit, and you got yourself in so much debt, the irregular income makes it even more stressful than it would be if you had it coming in every month. So I just want to make sure that you are acknowledging this or Hubs needs to acknowledge this, because if he's holding up the sale of the. Of the Harley, then you guys got to have a real sit down here and go, this has got to stop. But the irregular income is not your issue.

[George Camel]

It's the behavior.

[Ken Coleman]

And so, to George's point, you better go make some more right now. Sorry, George.

[George Camel]

No, but on. On a bad month, let's say it's 10 grand. So we know that on a great month, it might be 15 grand.

[Sarah]

Right, right, right.

[George Camel]

So it's not zero. So we can't go. Well, we can't do a budget because it's a regular. What you guys need to do is cut up the cards yesterday, freeze Your credit completely. Close all the accounts, start doing the debt snowball, and sell everything you can in sight while also working twice as much as you are.

[Ken Coleman]

There it is.

[Sarah]

Right. Well, I've run out of children to sell, but I. I definitely would like to do the snowball. But is there a way to negotiate with the creditors to help with the interest rate?

[George Camel]

I can try. You can call every creditor and say, hey, listen, we're trying to pay you back. This interest is killing us. Would you be willing to lower it? But even.

[Taylor]

That's.

[George Camel]

Even.

[Ken Coleman]

That's a secondary action. You didn't even hear anything George said.

[Sarah]

I did. I did. We need to cut up all of our cards. I know, but I'm looking forward from here. If we do all of these things, I just want to.

[George Camel]

Sure.

[Ken Coleman]

Call them.

[Sarah]

We could be paying for 120 years.

[Landon]

Right.

[George Camel]

But here. What's the motorcycle payment every month?

[Sarah]

360.

[Ken Coleman]

Boom.

[George Camel]

So tomorrow you could free up 360 bucks if you get rid of that thing. Are you underwater on it?

[Sarah]

I don't. I don't know. I have not checked the resale value of it at this point.

[Ken Coleman]

Is Hubs willing to sell this, or is he fighting?

[George Camel]

He said like it was a sore spot, like it was not going to go away.

[Sarah]

Well, here's.

[Casey]

Here's.

[Sarah]

This could be a totally different issue, too. He works really hard, and he doesn't.

[George Camel]

I think he works too hard to be this broke.

[Ken Coleman]

He works hard to finish that sentence. I want to hear this. He works really hard. Keep going.

[Sarah]

I know. Well, and. And I don't want to take something that he loves so much. He absolutely loves it, but he's not gonna love anything.

[Ken Coleman]

I don't care how great your toys are. When you're miserable underwater with debt, you don't love anything.

[Sarah]

Right. True.

[George Camel]

And don't you think the stress of having to work this hard and pay off all this debt is not worth the joy of the motorcycle that we can go buy once we're debt free?

[Sarah]

Right. Agreed.

[George Camel]

I mean, this is like a child who's unwilling to let go of their toy.

[Sarah]

I know.

[George Camel]

Well, it's not Grandpappy from World War II. This isn't sentimental.

[Sarah]

Right, True.

[George Camel]

So I just feel like we need to make some sacrifices here. And you're looking for solutions that are shortcuts that don't involve us having to change our lifestyle. It's been out of control for so long that you guys don't know another life.

[Sarah]

Right.

[George Camel]

And that's why cutting off all the. You can't Go into credit card debt if you don't have a credit card. That's what I found. That's the best way to address the issue. So cutting up these cards, getting rid of the motorcycle, you need some instant relief right now. And it's not going to come from a debt repayment company or another consolidation loan or adding more debt. You've got to start cutting. And so you got to have a come to Jesus moment with your husband tonight and say this is not okay. Why are we living like this? We make $180,000. How are we in crippling debt?

[Sarah]

Right.

[George Camel]

And so is your husband on board for this? It sounds like you're wanting to make a change and you're going, hey, it's a hard sell because he's a hard worker. I don't want to take, I don't want to make him sacrifice anymore.

[Sarah]

He is on board. I just, I am the type of person, I'm a people pleaser and I want him to be happy and I'm equating his happiness with his motorcycle.

[Ken Coleman]

Let me ask you a quick question. 5 second answer or less. How happy would he be if all that debt went away tonight?

[Sarah]

Oh, world's happier.

[Ken Coleman]

Well then, then why don't we aim on that people pleaser.

[George Camel]

Happiness is not in stuff. You can find happiness in financial peace because of a lack of stress, but it's not going to come from riding that motorcycle while you're in crippling debt, stressed out, affecting your marriage and your financial future. I'm going to send you guys Financial Peace University because I want to see you in. I think you need some fire under your butt and I think Dave and crew can help if you watch all nine lessons. So hang on the line. Sarah. We're going to send you guys Financial Peace University as a Valentine's gift on us. This is the Ramsey Show.

[Dave Ramsey]

People tell me about their experiences with big banks all the time. Bad service fees that nickel and dime them to death and predatory lending that tries to catch them in never ending cycles of debt. So if you're ready for a bank that puts people over profits, check out Fairwinds Credit Union. I recommend Fairwinds because they share our Ramsey values of helping people get out of debt and live generously. If you go to fairwinds.org Ramsey you'll see the combined checking and savings account bundle they created just for Ramsey fans. This account bundle is designed to help you take control of your finances and stay out of debt. And Fairwinds also has a great mobile app that's safe and secure so you can manage your transactions with peace of mind. Fairwinds has been helping people avoid big bank traps for 75 years. So go to Fairwinds.org Ramsey to learn more. It's easy to join no matter where you live. That's F a I R W I n d s.org Ramsey it's that time again, folks. Tax season is here. I know some of you would rather bury your head in the sand until April 15th then face your taxes. But here's a better idea. If your tax situation is complicated, get in touch with a Ramsey trusted tax pro today. That way they can take the stress off your shoulders once those tax forms come in and teach you how to keep your tax bill as low as possible. But don't wait. Ramsey trusted pros can book up fast. Go to ramseysolutions.com taxpro to find one who serves your area with excellence. That's ramseysolutions.com taxpro.

[George Camel]

Welcome back to the Ramsey Show. I'm George Campbell, joined by Ken Coleman. And we're also joined by a lovely couple on the debt free stage. It's Brian and Taylor. How you guys doing? Good. You?

[Taylor]

Amazing.

[George Camel]

I mean, you guys are better than you deserve today on the debt free stage. Where are you from?

[Taylor]

Greeley, Colorado.

[George Camel]

Wonderful. How much do you guys pay off? We started out in 2021 with $102,361.45 in debt. Wow. Since then, we just started Ramsey in October of 2023, and we paid off in the last 15 months. We paid off the remaining $38,727.90.

[Ken Coleman]

Whoa.

[George Camel]

Okay, so how long did this full journey take to pay off the 102?

[Ken Coleman]

Go ahead.

[Taylor]

Since May of 2021.

[George Camel]

Wow. That's incredible. So how many months is that? Do the math with me here. Almost. Almost four years?

[Taylor]

Yes.

[George Camel]

Okay. Just shy of four years.

[Taylor]

But in 15 months was the almost a big one.

[George Camel]

Like, you really went gun ho.

[Taylor]

Yes.

[George Camel]

Okay. And what's the range of income during that time? We started out at 140,000, and then we ended up at about 158,000. Wow.

[Ken Coleman]

What do y'all do?

[Taylor]

I'm a truck driver and I do international documentation for jbs.

[George Camel]

Cool.

[Ken Coleman]

All right, Very nice.

[George Camel]

So tell us about this 102,000. What kind of debt was this?

[Taylor]

It was everything we had. Credit card debt, student loan debt. And I'm blanking. I am Service.

[Ken Coleman]

You're doing great, by the way. You're okay. I mean, look at us. I mean, we don't scare anybody. So just deep breath. You're going to be fine.

[Taylor]

Watch it or I will come take your job.

[Ken Coleman]

Now I'm scared. Now I'm nervous.

[George Camel]

Reverse intimidation.

[Ken Coleman]

She just flipped it on me.

[Taylor]

We had it all. So when we started this journey, it was hard because in 2021, we had barely just been married. We've only been together for six years, and between us, we have seven kids. And so a combo marriage, and we both brought debt to the table. And then we fought a lot. It was many, many arguments, many tears, many slammed doors in the house. And then it was in the summer of 2021, I started listening to Ramsey. And after about two months, I went home. And when I was excited and I told Brian, I said, hey, we need to do this. You need to start listening to these shows. And he looked at me, he goes, I'm not going to do mlm. I said, it's not multi.

[George Camel]

Oh, my gosh, it's hilarious.

[Ken Coleman]

That's good.

[Taylor]

I said, no, this is you buckling down and paying off your debt.

[George Camel]

And.

[Taylor]

And so I wasn't sure how to approach this because money was a huge argument for us, and we were both embarrassed, we were both frustrated, and so we didn't. We didn't know how to communicate. So I reached out to Andy Thiel was from our financial advisor, and I asked him to come to the house one day. And so he came over and he sat down and we were talking numbers. So Brian said, no, I'm not going to sit here and talk. And so I sat there with Andy and I slid a piece of paper across the table, and I said, well, here's our debt, here's our income, here's our age. Where will we be at retirement? And he kind of looked at me dumbfounded when he looked at the number, and he didn't say anything. He got up and left. And about a week and a half later, he called back and he says, I have some charts and graphs and I have some numbers. I said, can I get you and your husband to sit down? So he came back to the house, and again, I said, brian, would you come sit down? And Brian's like, you know. But he did. He came over, he stood next to me. He wouldn't sit. And then when Andy brought out the charts and grass, he goes, I don't. He goes, when I left your house, he goes, it was very dismal. He goes, I was nervous for you guys because of where you're at with your age and what your debt was, and you know, he didn't see how we were going to get out of this. And he goes, I don't know what your plan is. He goes, but what you have shown me. And he slid the charts of grass over. He goes, you guys will be self made millionaires at retirement. And right Now Brian is 55 and I am 50. No, he's 57 and I'm 55 sounds better. I'm 54. I'm nervous. I'm flubbing up here.

[Ken Coleman]

You're doing great.

[George Camel]

Wow. So where are you guys at now?

[Taylor]

Well, we are completely debt free. We're on baby steps three, but.

[George Camel]

Except the house.

[Taylor]

Except the house. That's true.

[George Camel]

And on track to become baby steps millionaires by retirement.

[Taylor]

Yeah.

[George Camel]

Even after all of that. So what? Encouragement to anyone listening who's going, wait, it's too late for me. Well, we have Brian and Taylor here telling you that even if you get a quote late start in your 50s, you can still turn this around and retire with dignity.

[Taylor]

Yeah.

[George Camel]

What a beautiful picture.

[Taylor]

Yeah.

[George Camel]

And Brian, what got you were the reluctant spouse. You heard Ramsey way, and all you heard was Mary Kay and not the right. So what got you to actually make that turn and go, all right, fine, I'll do this. Just looking back at what I hadn't done and what I did do was what was wrong and what I should be doing for my family and my wife. So was it really that kind of like you didn't want to look in your own mirror and go, oh, I'm part of this problem? So was that why you were shutting down? Right? Yeah, I was embarrassed. You know, I should have done better. And then Taylor was a numbers person and she was an ex. She's an ex teacher. And.

[Ken Coleman]

And so I kind of learned from her.

[George Camel]

And so you had to let go of your own baggage and shame and go, all right, I'm part of this, but I got to do something about it. If I'm the problem, I'm the solution? Yep.

[Ken Coleman]

All right, so here's what I want to know. So after the charts and graphs, kitchen moment, we'll call it. What did it look like going forward? How committed were you? What was the most extreme thing you did? Give us? Give some people out there that are listening, watching. Give them something to hold on to. What'd you do?

[Taylor]

Well, I made up a graph and it's. It's one of those little thermometers, and I put it on the wall right outside of our bedroom door. So we were forced to walk past it every day to see what our actual debt value was. And then we filled it in, colored it in as we went and, you know, paid off the debt. But that first month when I sat down, I. Because it's, it's a hard thing to do with that. Every dollar app. It took me the three months to really.

[Ken Coleman]

That's right.

[Taylor]

Get it figured out if it's stumbling project. But that first month I looked at him and I said, we spend way too much eating out. And so we did a 30 day challenge and that was a hard one.

[George Camel]

Because no eating out for 30 days.

[Taylor]

No eating out. And so then.

[Ken Coleman]

Was there any rice or beans involved?

[Taylor]

Home cooking and food? Beans, yes. But when we got done, you know, we both, he was like, well, I want to be able to have some enjoyment. And I said, well, let's just do two, two dates a month where we have one with the family and then just one with us. And we were going to put that in the budget, which I did. But we didn't use it because we realized, you know, how much money it was costing to eat out. So we just kind of quit everything all together. And this is our first trip since we started this. This is the first.

[Ken Coleman]

Sweet.

[Taylor]

We're all out on this. So it's.

[Ken Coleman]

Did you stay at a decent hotel?

[Taylor]

We did.

[George Camel]

Okay.

[Ken Coleman]

It's.

[Taylor]

When do you guys recommend it, actually.

[Ken Coleman]

Oh, good.

[George Camel]

I didn't know we were in the hotel recommendations.

[Ken Coleman]

I. No one consulted me. I'd like to see because I got an opinion on hotels. I'm. I'm what they call bougie, I'm told.

[George Camel]

I love that about.

[Ken Coleman]

I don't know what it means, but I'm told that's what I am.

[Taylor]

Can I give a shout out to all of our kids?

[George Camel]

Please?

[Ken Coleman]

Please do. All seven of them.

[Dave Ramsey]

Here we go.

[Taylor]

So they range from 33 down to 15.

[Casey]

Wow.

[Ken Coleman]

Wow.

[Taylor]

So we have Brianna, Ian, Tyler, Brandon, Aaron, Claire and Tyler. And yes, we have two Tylers, one from each of us. But our kids are our motivator too because we realize looking back, both of us have lived paycheck to paycheck and it's been a very, it's a hard struggle and we don't want our kids to follow in that path. So the two living at home are the two youngest ones, Claire and Tyler. And they're, they've watched our struggles and they've. They felt the heartaches that we've been going through as well.

[Ken Coleman]

That's amazing. Change that family tree.

[George Camel]

Yeah, absolutely. What's next for you guys? You're on baby step three. And now we're going to be investing for the future as your financial advisor because cheering you on. Any other cheerleaders in your life?

[Taylor]

My mom was probably my biggest one and then we were our cheerleaders for each other. But my mom would, she checked in quite often and shoots and text messages and you know, I'd send her pictures of the graph and you know, she would, she was the one that was probably the biggest one for me.

[Ken Coleman]

That's awesome.

[George Camel]

What's the 32nd encouragement you would give to someone who might be where you guys were in your 50s going, Gosh, we're a hundred thousand dollars in consumer debt. We're so far behind on retirement, we're never going to be able to do this.

[Taylor]

Be smart. Sit down with the financial. The thing that woke me up was looking at what money we didn't have and realizing how far in debt we were. And we, you know, we made a big mistake. We pulled out 70,000 out of our retirement as a down payment on our house before Ramsey and realized, you know, that was probably one of the biggest mistakes we ever made because that's like a $430,000 mistake.

[George Camel]

But wow.

[Taylor]

We, we just weren't set up for retirement at the time and now we're on track.

[George Camel]

That's incredible. Well, hey, we've got a little parting gift for you for coming by. We've got two one year subscriptions to every dollar. That was the tool that helped you. After three months of struggling through it, figuring it out, it's what helped you guys get debt free. So feel free to use that or pass it on to someone to get their journey started. We are so pumped for you guys. All right, you ready to do this?

[Taylor]

Yes.

[George Camel]

We've got Brian and Taylor from the Denver, Colorado area. $102,000 paid off. Credit cards, student loans, car loans, it's all gone. They did it in under 40 years with the last chunk getting knocked out fast. In 15 months making 140 to 158. Count it down. Let's hear a debt free scream.

[Taylor]

3, 2, 1.

[Ken Coleman]

We're debt free. That's special.

[George Camel]

From the kitchen fights to a debt.

[Ken Coleman]

Free life on Valley. Valentine's Day, no less.

[George Camel]

Adele makes senior. Is there anything more romantic than fiscal responsibility?

[Ken Coleman]

I don't know. I gotta believe Cupid was debt free.

[George Camel]

You gotta be.

[Ken Coleman]

I almost said Cupid.

[George Camel]

There can't be much money in that matchmaking.

[Ken Coleman]

Yeah, but hey, how's he pay for those arrows?

[George Camel]

We love to see it. This is the Ramsay show. I still remember 10 years ago, 23 years old, I was frustrated, anxious and flat broke. I had followed all the ways that toxic money culture had led me down from well meaning parents and misguided guidance counselors. And it left me with a pile of debt. But I'm telling you, it doesn't have to stay that way. Over a decade, I went from broke to millionaire. And I break it all down in my new book, Breaking Free from Broke. I'm going to show you just how toxic this money system is and how you can break free from credit scores and credit cards and student loans and auto loans and investing traps and finally live a life that you're not exhausted by a life with more margin, more options, and more peace. If you want to check out the book, go to ramseysolutions.com store to get your copy of Breaking Free from broke. That's ramseysolutions.com store. Welcome back to the Ramsey Show. I'm George Campbell joined by Ken Coleman. Hey. This is the last segment of this hour and if you want to check the rest of the show out, you got to get the Ramsey Network app. The only place to get full episodes of the Ramsey Show. You can download the Ramsey Network app for free. Just use the link in the show notes or to search Ramsey Network in your app store. For everyone listening on radio, stay tuned. The show will continue as programmed, but everyone else, don't miss out. It's happening in the app. Michael in New York is up next. What's going on? Michael?

[Michael]

Hey, how are you? Thank you for taking my call.

[George Camel]

Absolutely. How can Ken and I help?

[Michael]

Sure. So it's really just general investment advice and guidance. I got married a few months ago. Congrats and thank God. We got. Thank you. We got a lot of money in wedding gifts. You know, we currently don't have any get any debt, but we have like $45,000 sitting in our checking account, which is obviously ridiculous.

[George Camel]

That's amazing.

[Michael]

I just wanted to. Yeah, thank you. I just want advice on, you know, where, where you would put it and also just some, you know, passive investing with my income.

[George Camel]

Okay, so what is your household income?

[Michael]

It's about 120,000.

[George Camel]

Awesome. And you said you guys are debt free. Do you have an emergency fund in savings outside of the 45 or is that kind of everything?

[Michael]

No, that's everything.

[George Camel]

Okay. So that's all the money to your name, that's liquid. And what would a month of expenses look like for you guys right now as a married couple? Have you kind of figured out Finances.

[Michael]

Yet not so much. Our rent is about 2,400. Utilities another 300. I own my car. Probably around 3,500 altogether a month.

[George Camel]

Does that include like food, insurance, everything?

[Michael]

Yeah, maybe a little more. 3,800.

[George Camel]

Okay, so let's call it four grand is one month of expenses. And we recommend three to six months of expenses in a fully funded emergency fund. So for you guys, we can call that 15 or 20 grand. Okay, so let's say you kept 20 grand aside as your emergency fund. Label it emergency fund, do not touch it unless there's a true emergency. And then the other 25. Now, now we're talking. Now we can use this money towards something. I'm not sure if it should go toward investments yet. Let's dig in a little more. Are you guys renting right now?

[Michael]

Yes, we are.

[George Camel]

Okay. And your rent is 2,400amonth. So at this stage of the game, once you set that money aside today, you'll be in baby step 4, 5, and 6. And so I would be working on investing 15% of your household income. So for you guys, that would look a lot like. What's that per month? Ken, do the math for me here. 120.

[Ken Coleman]

What are you doing? Hit me again.

[George Camel]

I'm sorry, I was thinking, so 18 grand a year.

[Ken Coleman]

Yeah.

[George Camel]

So basically 1500 bucks a month from your future income should be going toward investing. So that 20k might become a starter down payment fund for you guys.

[Michael]

That's what I would youing that in cash.

[George Camel]

I would keep. If this is a shorter term goal, let's say in the next few years, I would just keep it in a high yield savings account. I would not keep it in cash. You got to at least keep up with inflation and let this money grow for you. And so a high yield savings account is the place I would store any short term savings goals. Any emergency fund.

[Ken Coleman]

Yeah.

[Michael]

Okay. And do you have any recommendations for High yield Savings?

[George Camel]

Absolutely. Yeah. You can check out Laurel Road is one that has been a great partner for my YouTube channel, LaurelRoad.com George. And then we've got Fair Winds as well. That's been a great partner on the Ramsey show. They have a great checking and savings bundle. So there's a lot of options out there. And here's what I wouldn't do. I wouldn't go rate climbing. People try to go, well, I can get 3.8% over here, but now it's 3. The rates are changing all the time and they've been going down. And so don't worry as much about that. Just don't leave it in a boring old checking account or a regular traditional savings account. That's the key. And then beyond that, start investing in your retirement plans. You have through your employer. You got a 401k or something equivalent?

[Michael]

No, unfortunately my employer doesn't give me that.

[George Camel]

Okay. You're not self employed though. Your employer doesn't have any retirement options.

[Michael]

Yeah.

[George Camel]

Okay. So your next best bet would be something called an Iraq. And that's something you can open without having an employer. As long as you have earned income. You can open up an IRA and there's a Roth version. All that means is you're paying the taxes now, you're not going to get a deduction come tax time, but that money will then grow tax free and you can withdraw it tax free come retirement.

[Michael]

Wow.

[George Camel]

So you could fund that. It's about $7,000 a year is the max contribution for this year. And so you and your wife could both do one of those. And that would get you real close to that 15% goal, right?

[Michael]

Amazing.

[George Camel]

Absolutely. And I'm going to send you as a newlywed gift a copy of my book Breaking Free from Broke that walks you through all of this. Even on the wealth side, there's an investment traps chapter, wealth is patience chapter that will really help you guys navigate all of this. And I think that'll. That'll be a great start. 21 to be making 6 figures debt free.

[Ken Coleman]

Yeah, it's great. And I was only going to add one thing, Michael, is that don't. Not that I'm thinking you're going to, but I think this is the human condition. I agree 100% that I would put the 20,000, the additional after he's done everything else, the emergency fund, don't let that burn a hole in your pocket. And that's an old phrase. You know, when I was a kid, you know, your grandfather give you 50 cents or something and don't let it burn a hole in your pocket. Which I'm like, what does that mean? It means, you know, hang on to it, don't spend it right away. And I think for a young couple, certainly this young, you get 20 grand there. There's a lot of people that will talk them into using the 20 grand right now to get in a house as opposed to be patient. Let that 20 grand be an awesome start and really build a really big down payment, you know.

[George Camel]

Oh, absolutely. They're in the New York, New York City area.

[Ken Coleman]

Exactly.

[George Camel]

Which means 20 grand is not a suitable down payment.

[Ken Coleman]

But you know what I'm talking about. There will be no shortage of people that'll go, oh, take the 20 grand and only put this in small. And then. Yeah, no, no, no. Sit tight on. Build on that 20 would be my advice.

[George Camel]

Absolutely. I love it. Great call, Michael. Thank you. Paige is in Oklahoma City. Up next, how can we help Paige?

[Casey]

Hi, how are you guys today?

[George Camel]

Doing great. What's going on?

[Casey]

I'll just get right to my question. I inherited a home free and clear about three years ago. I was wondering if we should sell it and put that towards our mortgage or keep it as an investment property.

[George Camel]

Oh, this is a fun one.

[Ken Coleman]

I like this. Tell us more. Tell us how much rent it's. How much profit it is spitting off in rental, or have you not started renting it yet?

[Casey]

It's been rented with a tenant for about a year and a half. She's great on time every single month that she just gave us notice that she would probably be moving out in June.

[George Camel]

Okay, and.

[Ken Coleman]

And it's paid for, correct?

[Casey]

Yes.

[Ken Coleman]

So what, what were you making in a year for renting that?

[Casey]

Roughly 10 to 12.

[Ken Coleman]

10 to 12,000 after taxes.

[George Camel]

Okay. And what's it worth?

[Casey]

So it's probably would go for about 180.

[George Camel]

Okay. And what's left on your mortgage?

[Casey]

300.

[George Camel]

So you could throw the proceeds of the home sale, if you did sell it, toward the mortgage, knocking it basically in half. Yes, that's definitely. I mean, the fact that you're even calling about this makes me think you don't really want to be in the landlord business.

[Casey]

I mean, we. It hasn't been an issue. We're just kind of laying options. We're almost done with baby step two, and we'll have baby step three done by May. So we're just kind of looking ahead. So just trying to see if that was probably a better investment or just keeping it as a rental.

[Ken Coleman]

I'll tell you what I would do if I were you, because the, the house is not worth an enormous amount. It's not going to. I mean, how much more is it going to keep going up over 10 years, George?

[George Camel]

You know what I mean? And what's your household income age?

[Casey]

Yeah, we make about 110.

[George Camel]

Okay. So losing 10,000 in rental income is not going to make or break your budget. Right. It was a small part of your income anyway.

[Ken Coleman]

And they're not keeping 10 because you guys got expenses on that house. So for those reasons, George. For those reasons, Paige, I, if I were you, would sell the house and knock that mortgage of your actual home in half. I think that's going to put you further ahead financially than actually keeping the house. I just don't see that that house is worth that much long term versus your current home. And your current homes were double. And, and, and you're going to be able to, to roll that, you know, in time like George has done. George Whitney have done that recently.

[George Camel]

Yeah.

[Ken Coleman]

And so I, I, that's what I would do if I were you. I'd sell the rental and put it all towards your current home.

[Casey]

Okay.

[Sarah]

All right.

[Casey]

All right.

[George Camel]

Good luck. This is an exciting time.

[Ken Coleman]

I wouldn't agree with that. I got out in front of the money.

[George Camel]

You know, Dave loves real estate. He'd probably just hang on to it because he loves real estate and he's got lots of tenants and lots of properties. But sure, it's not a, like everyone needs to own property and everyone needs to have investment property. You could take that 180 grand, put in an investment account and you can make the same amount you're making from your renter just without the hassle. And so there's no one way to do this. And I like her plan of getting rid of the primary mortgage, freeing up the mortgage payment, investing that, and then later on they can always save up and pay for an investment property with cash.

[Ken Coleman]

Yep.

[George Camel]

But great question. All right, that puts this hour of the Ramsey show in the books. If you want to catch more of it, we're still sticking around. You got to go to the Ramsey network app to get it. We'll see you over there. This is the Ramsey Show.

[Ken Coleman]

The right questions are the key to unlock personal and professional potential. That means if you're not where you want to be, you are not asking the right questions. I'm Ken Coleman and this is what my new show Front Row Seat is all about. Over my career, I've had the distinct privilege to interview successful people from all walks of life and to coach over 10,000 professionals who wanted more. What sets successful people apart is a never ending desire to learn and grow. Each week I'll be joined by industry leaders and world class experts to have a conversation about how to get better, move up and lead well in work and life. But the best part of this show is you get to be a part of the conversation. Live in studio. We'll have a group of professionals just like you who have the power to ask questions and steer the discussion in real time. It's an opportunity to get real answers to real questions like how to make the right decisions, have hard conversations, live a balanced life and discover your next steps to growth. Join us every Tuesday for conversations that are guaranteed to surprise, challenge and inspire you. Check out front row seat wherever you get your podcasts.