“Was I Right To Break Off My Engagement Because of Bad Money Habits?”

Summary

Podcast Summary: The Ramsey Show

Episode: “Was I Right To Break Off My Engagement Because of Bad Money Habits?”
Date: November 24, 2025
Hosts: George Campbell & Jade Warshaw (Dave Ramsey at intervals)

Overview of Episode

This episode focused on real-life financial dilemmas called in by listeners. The main theme revolved around relationships and money—exploring difficult decisions like breaking off engagements due to financial incompatibility, navigating jointly owned assets, and overcoming financial distress as a couple or family. The Ramsey team gave practical, direct advice with characteristic candor, helping callers see both the numbers and the emotional realities behind their money decisions.

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Key Discussion Points & Insights

1. Breaking Off an Engagement Over Bad Money Habits

(00:40–08:35)

• Caller: Brianna from Minneapolis
• Situation: She broke off her engagement due to her fiancé’s bad money habits (overspending, trouble holding a job) and now faces sole financial responsibility, including debt incurred during the relationship.

Major Insights:

• Hosts affirmed Brianna’s choice, emphasizing the importance of aligned financial values before marriage.
  • Jade Warshaw (02:12): "You had enough time to see a track record, and you seem like your thoughts are comp. So I'm going to ride with you on this."
  • George Campbell (01:52): "I say bullet dodged...It's either this or a divorce later on. I'd rather nip it in the bud while we can."
• Brianna revealed she bought a $50K car during her engagement, influenced by her fiancé.
  • George (04:17): Calls out the inconsistency: "How am I supposed to take you seriously if I'm the Fiance going, you really need to get better with your spending habits. And then I'm over here financing a $50,000 car?"
• The hosts challenge her to take ownership for her own financial decisions, not just blame the ex.
  • Jade (05:25): "There are plenty of people in the world who are fine with debt. For a lot of people, that's not the problem. The problem is when you have somebody who's not working..."
  • George (05:56): "I think you are right to break off the engagement, and I think we need to accept a little more responsibility that we weren't quite the angel that we maybe made ourselves out to be, and he's the devil here."
• Actionable advice: Sell the expensive car, become financially independent, and establish solid financial habits before entering another relationship.
  • George (08:19): "I would sell that car as soon as possible...There's no reason you need to be driving a $50,000 car walking out of this mess."

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2. Marriage Stress Over Money & Hobbies

(10:30–21:56)

• Caller: Jeremy from Boise
• Situation: Argues with wife over hobby spending (restoring an old car) while under heavy debt. Wife is strict with the Ramsey plan; he's not as urgent about getting out of debt.

Major Insights:

• Jade and George frame the spending disagreement as a misalignment in financial priorities and a potential threat to marital unity.
  • George (15:09): "She's seeing a guy who is choosing a hobby of car restoration over the strength and stability of their marriage and finances."
• They suggest practical ways to harmonize goals:
  • Set a fun money budget for each spouse.
  • If Jeremy wants to fund his hobby, get a side hustle and earmark extra income for it.
  • Consider selling high-value vehicles to pay off debt faster and relieve stress.
  • George (19:31): "You'd have 70 grand sitting in a bank account to go buy some used cars and pay off debt."
• Warning: Avoid letting debt and secretive spending become reasons for divorce.
  • George (20:22): "You're opting out of this marriage by focusing on this car instead of what she really needs right now."

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3. Messy Family Real Estate Deals

(21:56–33:23)

• Caller: Kaylee (Canadian living in Florida)
• Situation: Co-owns a house with mom (and indirectly dad), grapples with how to split household bills and future profits, and whether she’s being unfair for wanting to split bills three ways instead of two.

Major Insights:

• Hosts clarify that if parents’ finances are joined, it's really two “entities,” not three—so 50/50 is fair, not thirds.
  • Jade (24:52): "Your mom and dad are an entity and you are an entity. That's really what it is."
• Urge to get any homeownership or profit-sharing agreements in writing for clarity.
  • George (27:52): "I would have that in writing and have all of you sign it and come to Jesus meeting and say, this has been messy."
• If the current arrangement causes ongoing stress, recommend getting out altogether, letting parents buy her out, and simplifying life.
  • Jade (28:30): "You're so conflicted by this that you called in the show... Move and get an apartment on my own and just be on my own."

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4. Budgeting Struggles and Emergency Fund Management

(33:23–36:14)

• Written-In Question from Justin (Michigan): Keeps dipping into emergency fund to make it to the end of the month, wonders if he should pause debt payments to build a buffer.

Major Insights:

• Review and tighten the budget; any recurring shortfalls mean categories are mismatched with reality.
• Keep a small buffer in checking in addition to the emergency fund.
• Track spending in real-time to avoid mid-month surprises.

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5. Financial Planning & Major Life Choices

(36:14–42:55)

• Caller: Madison from Sacramento, age 24
• Situation: Paid off debt, wants to go back to school for counseling degree (~$50,000), but also wants to buy a home and start a family.

Major Insights:

• Absolutely avoid debt for school if possible, especially after working so hard to become debt-free.
• Cash flow school or delay plans until home/family goals are met.
• Be strategic: "You can do a lot of things, but you can't do them all at once." (Jade, 40:59)

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6. Other Notable Calls & Insights

• Spousal Career Change & School Debt: Couple wrestling with both wanting to change careers, but on tight finances and already in debt. Hosts urge delaying big dreams until financial stability is achieved, and caution against going into further debt.

  • Jade (48:47): "His is more risky...but his is cheaper and has a shorter timeline. Yours is more straight ahead, but expensive and you can't go into debt for this."

• Elderly Widow with Cash Stash:

  • Caller: Patricia, 82, has over $100,000 cash saved “under the mattress” by her late husband.
  • Advice: Deposit it at a bank; no fear of IRS reprisal beyond standard banking paperwork. Seek trustworthy investment advice so her nest egg can grow to supplement Social Security.

• Lead Paint Abatement Crisis:

  • Caller: Sydney with 5 young kids, facing mandatory $30K lead abatement in 1895 farmhouse, limited income.
  • Advice: Deep empathy, but ultimate focus on finding new sources of income or possibly selling before accruing unsustainable debt.

• Underwater Car Loan Choices:

  • Caller: Brittany owes more than car is worth.
  • Advice: Sell the car if possible, use personal loan for the gap, but avoid voluntary repossession, as it destroys credit but doesn’t remove the debt.

• Large Secret IRS Tax Debt:

  • Caller: Claude with 27 properties, hasn’t filed taxes since 2016.
  • Advice: Hire a CPA/enrolled agent immediately, liquidate properties to pay off huge probable tax bill, get integrity and legal compliance before disaster strikes.

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Notable Quotes & Memorable Moments

• "Bullet dodged. It's either this or a divorce later on. I'd rather nip it in the bud while we can."
  — George Campbell, (01:52) on breaking off the engagement
• "How am I supposed to take you seriously if I'm the Fiance going, you really need to get better with your spending habits. And then I'm over here financing a $50,000 car?"
  — George Campbell, (04:17)
• "Simplify your life."
  — Jade Warshaw, (93:16) to a caller with an unmanageable web of rental properties and tax issues
• "There are people who are fine with debt... The problem is when you have somebody who's not working and seems like they might not be able to hold a job."
  — Jade Warshaw, (05:25)
• "If you do this, somebody needs to go out and earn it."
  — Jade Warshaw, (115:09) about funding a destination wedding trip
• "We make $11,000. Why are we going into debt for anything?"
  — George Campbell, (112:44)

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Timestamps for Major Segments

• [00:40–08:35] — Ending engagement over money issues; what to do post-breakup
• [10:30–21:56] — Spousal conflict over hobby vs. debt freedom
• [21:56–33:23] — Messy family house deal and how to split bills/future profit
• [33:23–36:14] — Listener budgeting struggles & building a buffer
• [36:14–42:55] — Young couple, college dreams versus home/family priorities
• [44:11–52:04] — Career dreams versus family stability, timeline, and debt
• [54:09–57:48] — Elderly widow, hidden cash, and safe investment
• [95:53–103:40] — Lead abatement financial crisis
• [85:41–93:51] — Real estate investor with years of unfiled taxes

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Tone & Style

The hosts delivered tough love with humor and empathy, not shying away from hard truths. There were many moments of laughter—especially when callers revealed surprising realities (like mattress cash or massive back taxes)—but always a return to core Ramsey principles: honesty, personal responsibility, no debt, and intentionality.

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Conclusion

This episode showcased the complexity of financial challenges—especially as they intersect with relationships, health, and family. The advice threads a powerful needle: No short-term comfort or accommodation is worth a lifetime of financial stress and regret. Take control, act with integrity, and be brutally honest with yourself, your partners, and your budget.

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For more insights and resources, visit Ramsey Solutions.

Transcript

[Dave Ramsey]

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

[George Campbell]

Normal is broke and common sense is weird. So we're here to help you transform your life. From the Ramsey Network and the Fairwinds Credit Union studio, this is the Ramsey Show. I'm George Campbell joined by Jade Warshaw. This hour, the number to call is 888-820-552. It's your show. We're here to help you take the right next step for your life and your money. Brianna is with us in Minneapolis. Brianna, welcome to the show.

[Jade Warshaw]

Hi.

[Caller]

Thank you so much for having me today.

[George Campbell]

Yeah, absolutely. How can we help?

[Caller]

So I just have a question for you guys. So was I right to break off my engagement because of long term money issues and bad spending habits? I've always been disciplined with saving and planning for money. But he struggled with overspending and staying employed. Now that he's moved out, I've taken on full financial responsibilities myself. How can I stay on top of my bills while saving and protecting my future?

[Jade Warshaw]

Oh, that was like 20, 20 things in one.

[George Campbell]

Okay, well, we'll tackle the first part first. So were you right to break this off because of red flags that were not attended to that he clearly. This was a value you had, and this is a value every woman has is if I'm gonna marry some guy, he's got to be able to do at least two things. Provide and protect. Right. That's the reason why we find a mate, primally speaking. And you're saying he can't provide for the future. This was red flags that this guy can't hold a job, he's gonna continually go into debt, put us in a financial bind, therefore I'm out. And essentially he opted out of this engagement by continuing these habits that you made clear. Am I hearing that right?

[Caller]

Yes, that's correct.

[Jade Warshaw]

Wow. I mean, that's your choice. That's your prerogative.

[George Campbell]

I say bullet dodged. Cause this is. It's either this or a divorce later on. I'd rather nip it in the bud while we can.

[Jade Warshaw]

Yeah, so many people. I would really. I mean, I wasn't there. I'm just by what you said. But based on what you said, I would applaud you for it. Because so many people ignore red flags because you get so far down the line, it's like, I can't turn back now. And it's kind of like a sunk cost or scarier.

[George Campbell]

They go, well, he'll change once we're married.

[Jade Warshaw]

Well, never gonna happen.

[George Campbell]

Okay, now if he called into the show. Brianna, what would he say if he were to defend his honor?

[Caller]

You know, I, I would say that he. He's always tried to maintain a job, but it's just never worked out before. I previously knew him. He was employed for seven years doing software. Now he just can't. Ever since I got together with him, he can't hold a job just because the market's been so unsteady.

[Jade Warshaw]

And how long was the entire thing? How. How long was the dating and then the, The. The engagement?

[Caller]

Um, total. Everything was about two and a half years.

[Jade Warshaw]

Listen, I think that's long enough to get a. A read on the situation. It's not like this was super fast. I. I think that I'm. Again, I wasn't there, but you made the choice. You had enough time to see a track record, and you seem like your thoughts are comp. So I'm going to ride with you on this because you are the one telling us your side of it. And it makes sense to me now. He could call in and say something different, but still, at the end of the day, it's your choice. So.

[Caller]

Yeah. Thank you.

[Jade Warshaw]

So what's the second part of the question?

[Caller]

Yeah, so I would like to be able to. Better. Now that I've taken on. I've asked him to move out, I've taken on full financial responsibility of, like, paying our rent. And then while we were together, I purchased a car because I was able to make up that payment with having him here. Now that I.

[George Campbell]

Hold on. Brianna, you went into debt during the engagement.

[Caller]

Yes. And that was primarily because he kept telling me that I needed a new car.

[Jade Warshaw]

What were you driving before?

[Caller]

I was driving a Nissan Altima that needed quite a bit of maintenance.

[Jade Warshaw]

Got you. And what did you get? What did you.

[Caller]

I got 20, 25 Mazda CX70.

[Jade Warshaw]

What do you owe?

[Caller]

I owe about 50 on that.

[Jade Warshaw]

Shoot.

[George Campbell]

What do you make?

[Caller]

I make about. About $100,000 a year.

[George Campbell]

That's a lot of car, even for your income.

[Jade Warshaw]

Is that your only debt or you have more?

[Caller]

I have about 15 grand in student loans, and then I have like 2 grand in credit card debt, but that's it.

[George Campbell]

Okay, here's my thing, Brianna. I was really team Brianna. And now the more I hear you, the more I go. I'm not sure you believe in your own principles because you wanted this guy to clean up his act financially while you were an accomplice to the crimes. So it's like, how am I supposed to take you seriously if I'm the Fiance going, you really need to get better with your spending habits. And then I'm over here financing a $50,000 car. You know what I mean?

[Caller]

Yeah. Yeah. And it's difficult because he drives a BMW X4M competition, so.

Which is.

That is really difficult to get a nice car.

[George Campbell]

So you're trying to keep up with him, and it's his fault.

[Jade Warshaw]

Yeah.

[Caller]

Lifestyle.

[Jade Warshaw]

It does seem like, though, it was more. Can I. I'm a ride on the fence on this. I. I hear what George is saying, and he is not wrong. But the other part is, I feel like you were. Why doesn't he have a job regularly? Side of things. Yeah. Is that the fact that will this guy be employed or will he be sitting on my couch all day when I come home? Is that. Did I get that right?

[Caller]

Yep. And that's kind of what it had been before, too. So that's why it asked him to move out.

[Jade Warshaw]

Because to your. I. I am playing devil's advocate here. I'm just. I'm just letting y' all know she.

[George Campbell]

Got me riled up. That's all I'm saying. She got a plank in her eye, and she's looking at the spec in his.

[Jade Warshaw]

Because here's the thing. There are plenty of people in the world who are fine with Deb know that we don't agree with that, but plenty of people are like, yeah, I got my car note my credit card. For a lot of people, that's not the problem. The problem is when you have somebody who's not working and seems like they might not be able to hold a job and seems like they might be a tad bit lazy, I could see how that's a bigger red flag to you in the grand scheme of things. That being said, you can't be the. What is it, the pot calling the kettle black? Black.

[George Campbell]

Yeah. No, I see both sides. I think you are right to break off the engagement, and I think we need to accept a little more responsibility that we weren't quite the angel that we maybe made ourselves out to be, and he's the devil here. I think both of you had bad money habits. Both of you struggled with money moves, and you were looking to him to be a leader and guide you, and he couldn't do that. He was in a place of weakness, too, and so it's hard to fault him for that. As much as I want to be like, well, this guy's trash, and you should. I think you both have some things to work on. Can we agree?

[Jade Warshaw]

Yes.

[Caller]

No, I completely agree.

[George Campbell]

And I hope that if you. If this is a value you have, I want someone who can provide for me. I don't think that means I want someone who can float my lifestyle no matter what and afford a payment. I want you to reframe this and go, how can I put myself in such a good financial position then when I do meet the right guy, we are building wealth together instead of just making stupid decisions together.

[Jade Warshaw]

And there's part of this where if, let's say you, you know, you've. You've broken it off, you guys have gone your separate ways. If it's meant to be, you could go get back together. Like, you could give him a. Could have been the kick in the butt that he needed to go out and really show and prove who he's going to be. Because the truth is, you've just never seen it. And it's hard to, like, you want to see. You don't want all the talking. You want somebody to be about.

[George Campbell]

I love that. Jade is not giving up on love here. Is there. Is there a shot this could still work, Brian? Or is this, like, long gone?

[Caller]

You know, we have tried to make it work. We saw it like, right. Sometimes see each other and stuff, but it's just. I don't see any motivation from him to want to be better. He's determined to get a job that's been in the process of about six weeks now, and he's.

[George Campbell]

Has he been doing any kind of work?

[Caller]

No.

[George Campbell]

What's he doing all day?

[Caller]

I honestly don't know.

[Jade Warshaw]

I think you better cut it loose.

[George Campbell]

Yeah, well, the writing is on the wall, Brianna. And the good news is you're going to be real busy cleaning up this mess of your own for a while. And I think you also. We need to own up to the fact that we made a lot of decisions that were codependent and hinging on someone we weren't married to. I can make the rent as long as he pays. I can make the payment as long as he's in. And I think all of that is why we tell people, never combine financial lives, or for that matter, physical lives, living together before you're married. It just gets too messy because this could be on the other side.

[Jade Warshaw]

And yeah, now, now you're going to feel that being the only one covering that rent.

[George Campbell]

Yeah. I'm wishing you the best as you clean this up. Personally, I would sell that car as soon as possible. I wouldn't even work on paying it off. I would get rid of it. There's no reason you need to be driving a $50,000 car walking out of this mess. So best of luck to you, Brian.

[Caller]

Sam.

[Dave Ramsey]

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[George Campbell]

Jeremy is up next. And Boise. What's going on, Jeremy?

[Caller]

Hey, how's it going? Pretty good. Taking my call?

[Dave Ramsey]

Yeah.

[George Campbell]

What's. What's going on?

[Caller]

My wife and I keep fighting about money. She's hardcore on the Dave Ramsey plan. I support it, I believe it. I'm doing all the things that I feel like I should be, but I want to spend money on stuff that she doesn't agree with. And it's causing fights. And I don't want to get a divorce over it. But I also want her to kind of lighten up a little bit and have a little bit of fun with some money. Where should I go with this? Because I know I'm wrong for spending the money, but I don't want to just not spend any money.

[George Campbell]

Give us some examples. How much are you spending per month and on what? And she feels like that's out of control.

[Caller]

Well, we both spend money, but hers is more like regulated. Mine is on. I'm restoring an old car and I keep spending. You know, it's like, it's, it's almost done, but I'm probably about $10,000 away from having it completely, like finished.

[Jade Warshaw]

Do you guys have an allotted money that you get each month, Each of you.

[Caller]

No, we both work.

[George Campbell]

I know we're saying in the budget, is it like Jeremy's fun money, her fun money? And it's a hundred dollars each.

[Jade Warshaw]

Yeah.

[George Campbell]

You know, like, what is. What's the plan there? Or is it just Jeremy spends what he wants based on the parts he needs?

[Caller]

That's basically what's been happening.

[Jade Warshaw]

Okay.

[George Campbell]

I understand her frustration now. It's just like you're spending like Congress while you're trying to get out of debt. And she's going. This is going very much against the plan we agreed on. So when you're saying you support her, it sounds like you're like, I'm a fan of her doing it, but I'm not doing it.

[Jade Warshaw]

Yeah.

[Caller]

I think there's a middle ground that.

[Jade Warshaw]

You can get to. I think there's a middle ground you can touch.

[George Campbell]

The urgency for this car restoration.

[Caller]

It's been 17 years in the works, and it's almost done, so I'm trying to finish it.

[George Campbell]

So what's 18 instead of 17?

[Caller]

Right. I get it.

[George Campbell]

What has stopped you, I guess, in the past of finishing this just not.

[Caller]

Working, you know, like, I worked in the movie industry for a long time, and there's highs and lows, and when the highs are up, you make a lot of money and it's great. And when the lows are there, you're living off savings for months. And it kind of forced me to choose to pay my bills or restore this car, and I chose bills. But now I'm at a point where we're pretty much good. We cover the bills every month. We're still putting into retirement. You know, we have life insurance policies. We have all that stuff in place. Do you have debt contributing? A little bit.

[Jade Warshaw]

How much?

[Caller]

About 20. About 20,000 in credit card debt, but that's fairly recent.

[Jade Warshaw]

That's it.

[George Campbell]

That's a. Yeah. That's a lot. I don't know what kind of town you grew up in, but $20,000 at 29% APR is enough to get me to stop restoring that car.

[Jade Warshaw]

Yeah. What's your income?

[Caller]

Together we're making about 120 to 130,000. We owe 190 on our house. It's worth three quarter of a mil. We have two car payments, mines about three years from being paid off. Hers is brand new. 25 suburban.

[Jade Warshaw]

Yeah.

[George Campbell]

What's the total debt outside of your.

[Caller]

Mortgage, if you added it all up, including the cars? 125.

[George Campbell]

So 125,000 in debt total, and you make 130. How long is it going to take, based on her plan, for you guys to get out of this mess?

[Caller]

If we did it her way, it take us about two years. If we do it my way, it'd take probably three or four.

[Jade Warshaw]

And you're just not, so. You're just not. You don't see why you have to do it so quickly, Right?

[Caller]

That's. I support, like, all of the decisions. I just. I don't want to. I don't know if it's a midlife Crisis, because I'm 47, and I'm like, I need to finish this car before I die. Like. Like, I've been working. I've drugged this car around the country for decades, and I just want to. I want to drive like, the engine's done, it's ready to go in. I just need, like, brakes and suspension parts.

[Jade Warshaw]

How much does it cost to finish it?

[Caller]

About 10 grand for that's including the paint job.

[Jade Warshaw]

10,000 to finish. You want to know what I would do if I were in your shoes? Because. Yes, I want to be really thoughtful about this, because the truth is, I wish that you were 100, Ramsey, because I know the plan works. I've seen and talked to hundreds of thousands of people, and we know that it's worked for millions of people. So I know that it works. However, the reality is in, like, the just living in reality is there's sometimes that people are like, hey, for me, it's just. It's just not on fire like that. And like. Like, you. You opened with, this is not a reason to divorce your spouse. Right? So how can we make this work together? Right? And. And that'.

[George Campbell]

Here's what she's seeing. Let me show you her side. She's seeing a guy who is choosing a hobby of car restoration over the strength and stability of their marriage and finances. That's what she's seeing. And I can't get her to unsee that, because that is the stated goal she has, is, I don't feel good about all this debt we have. I want stability. I want security, I want safety. And you're over here playing with your toy. Right? That's how she sees it. I'm not. I want to give you full credit. This is a legitimate hobby. And also, it's been 17 years. So to use this manufactured urgency that, Babe, I gotta finish the car this year. I don't think a grown woman's gonna take kindly to that when she's looking at a pile of $120,000 of debt.

[Jade Warshaw]

And if you are gonna do anything, then at the very least, let me just say this. At the very least, take your income as it stands and do the debt snowball. And if you must finish this, go out and get a job, get a second job and let your second side hustle job that you're working for fund this, this hobby that you have and just see how, see what that, if that gets you guys any closer to kind of a meeting of the minds on this.

[Caller]

I did that for a while. I did have a second job.

[Jade Warshaw]

And what'd she say about that? Did that bother her?

[Caller]

Yeah. Well, then it just kind of got to a point where I was just never home and then she was mad that I was never home. So.

[Jade Warshaw]

Okay.

[George Campbell]

Do you guys have kids?

[Caller]

We do. We have a four year old and I have two adult children.

[Jade Warshaw]

Okay.

[Caller]

And I am, I'm. Like I said, I don't want to keep repeating myself. I really am on board with, you know, having our future prepared for, but I'm just kind of tired of waiting and I don't know how to get that through to her without having an argument.

[George Campbell]

Have you guys been debt free since you've been married?

[Caller]

Almost completely. She inherited some money and we used it and just paid off everything and.

[George Campbell]

But then went right back.

[Caller]

Well, I've always taken the stance that's her money, it's not my money. That. So I have, I offered to take out a personal loan at 10% interest to pay off everything. Well, not, not the cars, but all the 20,000 in credit card debt and then finish the car and then I'll just end. That would be in my name so that she wouldn't be responsible for it. Now just have that one payment or take five years if I paid it without double pains.

[Jade Warshaw]

I think you're just, I think you're doing so, so much to try to, it's, it's causing you guys to do, to even think separately at this point. I, you know, I agree with you. I, I like what George said and I think you should give a lot of thought to that because that, I think that is the way your wife is viewing it. And you're saying it's important, but you're not showing that it's important because if somebody tells me, if somebody calls me up on the line today and says, hey, I, I'm. I've had something happen, it's an emergency, I need you to. And I go, okay, just let me finish up this thing. I got about 30 minutes here and Then I'm gonna come over. I'm gonna be like, oh, my gosh. They don't care that I'm having an emergency, because they're like, let me fix a snack before I go. And I feel like that's what you're doing. She's saying, hey, this is on fire. This is an emergency to me. And you're going, yeah, honey, I know, I know, I know. But you're fixing yourself a snack before you go. Check it out. And so I can see why she's upset. And I can also see because for you, this feels extreme. So I can also see why this feels extreme to you. But you have to ask yourself, what's the bigger. What really is the bigger priority? Is the bigger priority making sure my life and my family is set up for success? Because you don't know what the future holds. You truly don't. You could lose your job tomorrow. You could jump step off the curve and break your leg and be on work, you know, on disability. You don't know what happens tomorrow. So I think that's what she's feeling.

[George Campbell]

And we know the car will still be there waiting to be worked on. And I know it's frustrating, but I would let that fuel the dream. And if you're not willing to do that, I would go, all right, well, I'm selling the cars then. If you want to expedite the process, you can do it by getting rid of these payments.

[Jade Warshaw]

Facts.

[George Campbell]

What are the car balances?

[Caller]

We owe 50 on the Suburban. It's worth 90. And we owe. I owe 30 on my truck. I had a 23 Tacoma. It's worth about. About 60.

[George Campbell]

Oh, my goodness. So you guys could sell the cars. Hear me. Hear me out. You'd have 40 profit from the first one, 30 from the next one. You'd have 70 grand sitting in a bank account to go buy some used cars and pay off debt.

[Caller]

Yes.

[George Campbell]

Are you seeing what I'm seeing? I think we can get this car restoration done in the next 12 months if we actually did this. But right now, we want the cake. We want to eat it too. We want to do the car restoration. We want to drive really nice cars we can't afford. We also want to pay off 20 grand in credit card debt that it's just too much at once. And she's overwhelmed. You're overwhelmed. But you have a distraction with this car restoration hobby. And so you're like, well, I'm gonna go to the garage. I think we need to have a come to Jesus meeting tonight. And Figure out what sacrifices we are willing to make. Otherwise, you're going to be choosing divorce. That's what you're doing. You're opting out of this marriage by focusing on this car instead of what she really needs right now.

[Dave Ramsey]

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[George Campbell]

Kaylee is up next in Orlando, Florida. Kaylee, welcome to the Ramsey Show.

[Caller]

Hi, guys. Okay, so I'll get to the point. I'm Canadian and I moved to Orlando, Florida on a work visa. And when I moved, I bought a house with my mother in Orlando, Florida. And my dad was really, he's like risk averse. And he was against it kind of like the whole time in the beginning because he was just afraid, like moving from country to country. He just didn't want any part of it. So we ended up, me and my mother on the deed of this house in Orlando, Florida. We were paying the mortgage and then after a year, my mom convinced my dad to pretty much he had like, us money in his bank to buy the entire house. We don't have a mortgage anymore. And then my question is we always, we kind of hit heads where like house taxes or anything that happens with the house, we need a new fridge or like the roof or something. We still divide that bill by two between me and my mom, but I keep saying we should divide it by three since he owns majority of the house. So when we sell the house he's gonna get most of the profit. And I love my parents. Like, we're amazing. It's just I always I in my head I think we should divide the bills by three. But am I being a brat? Cause I don't have a mortgage anymore. So like, am I just like just not being a good daughter and just should just do divide by the is.

[George Campbell]

Like a common core math riddle. This is real complex. What was the agreement when you guys got into the house? Did you both put equal parties parts for the down payment? 50. 50 on the mortgage?

[Caller]

Yeah, me and my mom both put 45,000 U.S. it was like 90,000 down payments and then we were both paying.

[George Campbell]

Yeah, and then he paid. How much to knock out the mortgage?

[Caller]

204. 204,000. And I think like over like it was two years, me and my mom were paying and we got it to a point where 204 was left. So he owns 204,000 of the house and then me and my mom owned the rest. And my parents are married too.

[George Campbell]

According to what and who? Was there an agreement, a contract?

[Caller]

No, just like verbal agreement.

[Jade Warshaw]

But your, your mom and your dad, they keep their money separate?

[Caller]

No, no, they keep it. No, they keep it together. But just my, my dad didn't want anything to do with the, the house kind of thing. But then they always bring it back while they're married. So anything that happens to my mom, happens to my dad. Right, so.

[George Campbell]

So if, if you leave, what happens? Do you get your share back? Do they buy you out?

[Caller]

Yeah, yeah, pretty much. It's either they buy me out or we sell it all together and then we all go with our different portions.

[Jade Warshaw]

Well, I think, I think you have to off. First off, you have to decide are you viewing when I. The reason I asked my question is because if your mom and your dad were keeping their money separate, then you could think of it as thirds. But because it's one group of money for them and then one group of money for you, it really is a 5050 deal. So whether you want to see it this way or not, when you and your mom bought this house, quote 50, 50, your dad, your dad was included in that. Whether he likes to put his name in it or not. That was 50% of his money. Right? That 50 was his money as well. So that's kind of the way I'm seeing it. Based on the way you said, it's not thirds, it's their group of money versus your group of money.

[George Campbell]

What's the long term game plan here? You Both want to stay in the house.

[Caller]

Yeah. Yeah. Well, my parents especially. This is something, too. So they're in Canada most of the time. They come visit me every two months. So I take care of the house while they're here. I have the bigger room because I'm here most of the time. And, like, so that's another thing, too. So it's like, I'm technically not paying for mortgage. So I guess I. Since I'm in the house most of the time, maybe I should be paying half the health taxes. And health taxes are expensive because I'm a foreigner, too. So it's like $7,500 a year. Always get slammed every year. Me, my mom, divided by two. And then I keep arguing. I'm like, it should be divided by three.

[Jade Warshaw]

No, I think you should be paying half. I think it's half and half. And then whenever I think this is messy to begin with, number one. But you have to consider it. 50. 50. Your mom and dad are an entity, and you are an entity. That's really what it is. And the fact that you are living there and it's rent free and blah, blah. Yeah, I think you should be on the hook for half. I mean, am I crazy here, George?

[George Campbell]

But I. I think that your parents are one entity in this. In this matter. And there's also insurance. Are you paying half of the homeowner's insurance?

[Caller]

Yeah. Having a whole. And then, like, if the fridge breaks down or something, it's divided by two still.

[Jade Warshaw]

Yeah. Why are you saying it with a tone that's like. Like you're mad about it. I feel like this for you, has been kind of a sweet deal.

[Caller]

Like, why do you have a. I agree. I. This is why I'm calling. Because I'm like, am I crazy or am I not crazy? When we sell the house, though, they're getting the majority of the profit.

[George Campbell]

I think you guys need things in writing because so far, your little verbal agreement handshakes have not worked out. Because there's clarity. Because at every turn, there's a new thing we didn't think about. Right?

[Jade Warshaw]

Yeah. On when you sell the house upon sale, has it been said that you're splitting 50, 50 the equity, or has it been said that they get two thirds?

[Caller]

No, no. Like, when we sell, I get my.

Whatever.

Like, my down payment that I put. And then, yeah, like, whatever percentage I'm in right now, I'm gonna get the percentage of the profit.

[Jade Warshaw]

Okay, so it's 50.

[George Campbell]

And what is that percentage? Because you've got home Appreciation. You've got the mortgage payments you've made. You've got the insurance and property tax you've paid in. So how are you calculating?

[Caller]

It wouldn't be 50. 50 though, the profit, it's like they would get like, I guess 80% of the profit. Yeah, 20 kind of thing.

[Jade Warshaw]

Tell me the real number of. When you put 50 down on the down payment, how much was that?

[Caller]

No, So I put 45,000 U.S. okay.

[Jade Warshaw]

And what did your mom and dad put down?

[Caller]

Yeah, so then, now they. So over two years, I think I have roughly around 60,000. And they have the remaining. So I'm gonna have 60,000 in this house equity.

[George Campbell]

Okay. What if the house appreciates and doubles in the next seven years? What happens then? You still get the same percentage.

[Caller]

So I think 60. Whatever. 60%. Sorry, 60,000 of 340,000. That's how much the house is.

[Jade Warshaw]

Okay.

[Caller]

Whatever that percentage is, that's how much percentage I would get for the profit.

[George Campbell]

Okay. It's about 18% is what you'd walk away with. If the house is worth half a million, then after all fees are paid, you should get 18%. I would have that in writing and have all of you sign it and come to Jesus meeting and say, this has been messy. I love you guys. I don't want this to be living in my head rent free. I feel like it's been a cluster. Can we just get on the same page with one contract that we all sign? That would help you.

[Caller]

We're agreed. That's what we're agreed with. We're good to go. It's just I find the house, like living here with the bills and stuff, I'm. I was, I guess not against, but I was just questioning it. Cause I was like, well, what did we. Because if it's a buy by 3, then I have to pay. I get to pay lower of the bill.

[Jade Warshaw]

You know, why don't you move?

[George Campbell]

Oh, why don't you move?

[Caller]

Because I just moved. I just moved here.

[Jade Warshaw]

I know, but here, here me out. You're so conflicted by this that you called in the show. You're bothered by the percentage that you have to pay. You're bothered by what you have to pay every month. You're bothered by the agreement as it stands because what George just said, hey, get it in writing that it's 18. You're like, that's already agreed on. So you're just not happy with the deal as it is. So get out of it it before it gets messier and messier and Just say, you know what? We did this. I'm not sleeping well at night with this. It's causing something inside of me. I'm just going to move and get an apartment on my own and just be on my own. Fair enough. I mean, why not simplify your life?

[Caller]

Yeah. Well, no, because I do think I have a sweet deal and it works out perfectly because they want someone to watch the house.

[Jade Warshaw]

You don't think you have a sweet deal. You don't. You called in saying that there's a problem with the deal because you're having to pay part of the taxes and it should be three ways and da, da, da. And what happens to when you called saying that?

[Caller]

Yeah, but I guess the question. My question was like, I just wanted your advice. Like, am I crazy for thinking that or.

[Jade Warshaw]

No, my advice for me to pay ij. My advice is get out of this deal and go rent an apartment. How old are you?

[Caller]

30?

[Jade Warshaw]

Yeah. Get out from under your parents, you guys. You don't have to do this with them. Go get an apartment.

[George Campbell]

Do I think it's crazy you feel this way? No. Do I think it's crazy you got into this situation in the first place? Absolutely.

[Jade Warshaw]

Yeah.

[Caller]

Well, no, like. Well, I give you more context, too. Like, I want a. A work visa.

[Jade Warshaw]

Right.

[Caller]

So anything can happen. I have to go back to Canada, too. And I don't know, I think renting for my. Me, I'd rather buy something than to, like. Because right now I'm not paying a mortgage.

[Jade Warshaw]

Because buying is far more permanent than.

[George Campbell]

Yeah, that adds a whole. Another layer of risk if you can't work there anymore, but the house is still tied to you, and now you got to force sell it. I mean, or still make the payments and you don't have the job. That's scary, isn't it?

[Caller]

It.

No, no, because we'll keep it as like a vacation home because we come off into Florida, so it was. Okay.

[George Campbell]

And who's gonna pay for the vacation home now? You're gonna go, well, they're there more than I am. They go four times. It's like a timeshare now. This is really what this has become. And you're living there mostly solo, you said, Right?

[Caller]

Yeah.

[George Campbell]

So couldn't they make the argument, well, you're there 284 days out of the year. We're only there 100 days. I think we should split it that way. Could they come back at you with that?

[Caller]

Exactly.

[George Campbell]

They might get you to pay more versus less. This could very much backfire. They're they're holding most of the cards right now as a majority stakeholder in this venture you signed up for. So that's why Jade's saying, hey, I would cut clean and go. You have some great equity now. You could get out with 60 grand, use that as a down payment on your own place. You probably don't need all the space. Right?

[Caller]

Right.

[George Campbell]

I don't think it's a bad plan to reset and go, all right, I'm gonna let them buy me out. Do they have the money to buy you out without selling?

[Caller]

Yeah.

Yeah.

[George Campbell]

I might offer that up as one angle to take. And if they're into it, I would cut ties and go, you know what? I shouldn't have bought family property across the world. That was a risky, weird move. Hey, quick reality check. AI isn't just for sci fi nerds and Silicon Valley tech bros anymore. It's the new weapon of choice for every scammer with fast wi fi and bad intentions. Identity thieves could be using AI right now to steal your info in ways that would have sounded impossible just five years ago. We're talking voice cloning, deepfake videos, filing bogus tax returns, draining your bank and retirement accounts, and even home title fraud. And it can happen fast, so most people don't find out until it's too late. So as someone who has had his identity stolen before, I don't mess around. I use Zander ID Theft protection because it keeps up with today's threats without the crazy price tag other companies charge. You get real time monitoring across your whole financial and digital life. And if something does go down, they'll give you the full white glove treatment like 247 restoration services by pros based in the US and up to $2 million in stolen funds and expense coverage. So you don't need to live in fear. But you do need to be smart about protecting your identity from thieves. So go to zander.com or call 800-356-4282 and get yourself protected today. Today's Question of the Day is sponsored by yrefi. If you've tried everything to fix your defaulted private student lo and nothing's worked, WireFi can help they build custom fixed rate plans based on what you can actually afford. Learn [e-mail] Ramsey that's the letter y r e f y.com Ramsey not available in all states.

[Jade Warshaw]

All right, today's question of the Day comes from Justin in Michigan. He says, I need help with my budget. I use the free version of every dollar, but can't seem to make it through the month without borrowing from my emergency fund. And then I have to replace the funds when I get paid. My budget reads like I have extra money each month, so I pay that to my snowball. But should I skip a snowball payment for one month to get a buffer in my account to not have to do the borrow payback thing each month between paychecks? Okay, so a couple things are happening here, I think, George. Number one, I think that you don't have a baby step one in place, which is $1,000, and I think that might be the buffer that you need. Possibly. It depends on what this. If this money is emerging, he's borrowing.

[George Campbell]

From his thousand dollar emerg. It sounds like that's what he's doing. Yeah, I mean, is he short 300 bucks? So he dips into the thousand dollar starter to get by, then replaces it and he just stays in this cycle?

[Jade Warshaw]

Yeah. Which means then his budget's not accurate.

[George Campbell]

Yeah. I would have a buffer in your checking account of, you know, 300 bucks, 500 bucks, depending on what your expenses are. I think that's wise because there's always going to be something unexpected. It was a little more than you thought. You know, your groceries and things like that, it's variable and so life might happen. But I do think there are some other money leaks happening that you aren't currently represented in your budget. So I think it's time for a little budget audit and go look at.

[Jade Warshaw]

Your bankeries, food, gas, something you're spending more on than you think.

[George Campbell]

Yeah. If the math's not math and then your line items are off, you maybe underestimated. You said, hey, I'm going to spend 500 on groceries and you're consistently spending 6. Well, we need to switch some things around so that you're actually staying under, under the categories instead of going over. So I would figure out which ones are there. Maybe there's a line item you need to add that isn't currently there, that represents that money that's kind of been leaking out and that will help you get there. But I'm proud of you for even trying this and trying to be aware of where your money's going. Most people just accidentally go six grand into debt over the year and this guy's trying to get out. So good on you, Justin.

[Jade Warshaw]

Also make sure, Justin, that you're tracking your transactions as they're taking place so that you can get ahead of this a little bit more. Because if you're tracking them, you can Kind of start to see what's happening and maybe make some adjustments as you're going to be having this issue.

[George Campbell]

In the premium version of EveryDollar, there's an awesome paycheck planning feature which can show you visually when you'll run out of money based on when you have due dates for bills coming out. That's one of my favorites for people that are struggling with an issue like this. And there's a ton of ton more advanced features we've been adding to make this way more than just our world class budgeting app. The average person now finds thousands of dollars in margin in just the first 15 minutes. Minutes with the new EveryDollar onboarding process. It's incredible. So start EveryDollar for free today. Get it in the App Store or Google Play. All right, Madison is in Sacramento, California. Up next, what's going on, Madison?

[Caller]

Hello. I'm honored to be able to get your advice. But Yes, I am 24 years old. My husband and I got married a year and a half ago and we are on baby step number four. So we have worked to pay off my student loans and a car as well.

[George Campbell]

Awesome.

[Caller]

And we have some about 20,000 saved and 25,000 invested. But I do have a dream to go back to school. But for me it feels kind of like a setback in the, you know, debt savings plan. So I wanted to get your advice because we also want to buy a house we're renting right now. So I wanted to get your advice on what you think the next steps would be and what you guys feel is a good idea when it comes to going back into debt for school. If I do have a stable career that I could grow in right now.

[Jade Warshaw]

Now, well, I would never go back into debt for school. I'm all for you considering furthering your education if you were paying cash for it. But you've come so so far, why would you consider debt again? What does it cost?

[Caller]

So it would cost around 50,000 and I agree with you. I, I don't like the idea of going into debt for school. But for what I want to do, I would need a license and so I would need to get my degree in that field.

[Jade Warshaw]

Right. But can we cash it? Can we cash flow it? Is this a two year deal? How many years of school is, is.

[Caller]

This, this would be more around three years.

[Jade Warshaw]

Three years. Okay, so let's, let's reverse engineer it and figure out, okay, what is it going to cost per semester? What will it take for us to make that happen? Because remember, there before you were taking all of your margin and throwing it at debt, what stops you from taking all of your margin and throwing it at tuition?

[Caller]

Yeah, that's a good question. So I'm trying to figure that out. What do you kind of wanted together? Combined around 165,000 a year.

[George Campbell]

That's an amazing income. Okay, and what do you, what do you personally make?

[Caller]

I make 65,000.

[George Campbell]

Okay. And you want to spend 50 grand on this program to get licensed to do what?

[Caller]

To be a counselor.

[George Campbell]

Okay. Are you in the field right now? But you're not a counselor because you need the masters.

[Caller]

Correct.

[George Campbell]

Okay. Have you looked at every single option at your disposal for what the most affordable route to go is?

[Caller]

I have, yes. I've done a lot of research, but I also want to go to a school that has a certain accreditation so that I can be certified in multiple states. But I've also looked at working for a school where I could get it paid for, but I haven't gotten a job in that situation, so I'm still sort of browsing.

[George Campbell]

I just feel like there's cheaper alternatives that can get you to the stream faster and without debt. That's what I'm all about. Because the truth is, never asked a counselor, hey, what school did you go to and what was the accreditation level? You know, so I understand that you want certain licensing and all that, but I just, I don't want you to over index on the importance of the school that you go to. I want you to over index on living a debt free life so that you don't regret this later on on. Because how much will you make as a counselor at that point? Will you go from 65 to 75? What's the, what's the upside here initially?

[Caller]

So that depends. If I wanted to do a private practice, which would take a little bit more time, I could be making anywhere from 100 to 200. But I also, in my career right now could probably grow into that as well. But I also want to start a family, so I don't know if it's worth it to go to school for that.

[George Campbell]

Yeah. What happens if you go 50 grand to debt, get pregnant, pregnant, have the baby, buy a house, and now you're like, I want to stay home. And now the math doesn't work. You see why our fear is like, I'm looking at your whole life and not just this one piece. And so I would sit down and go, we can't do all this at once. We can't start the family, get the House, go to school. We got to figure out the priorities here. And if that's going to school, then we're going to put all the, all the, you know, ammo towards that and cash flow it and get the job and increase the income. But if it's not going to increase the income initially, I don't know that it's worth it right now. I might wait to see. Let's get the home. That's really the goal. Let's start a family. That's the goal. And when I'm 28, we can reassess and I can always go get that master's.

[Caller]

Yeah, that's good advice, but I think.

[George Campbell]

You'Ve got the right heart for it. I think you'd be a wonderful counselor just based on talking to you, so.

[Caller]

Oh, thank you.

[George Campbell]

Best of luck, Madison.

[Caller]

Appreciate it. Yeah.

[George Campbell]

This is so real, Jade. Sorry to cut Madison, George, but I just. This is a real thing like this. There's nothing childish or immature about this. This is the stage of life where you could do a lot of things, you want to do a lot of things and you can't do it all at once.

[Jade Warshaw]

Yeah, a few people could do it all at once financially or even bandwidth wise. It's a lot to buy a house and move in and have a baby and go back to school. Yeah, that's a lot. Gotta pick.

[George Campbell]

I would focus it. So if you've got the margin right now, you have a great income, 165 grand debt free. That goes a lot.

[Jade Warshaw]

And they could cash flow it, by the way. I mean, when you think about $8,000 per semester on their income, they could make that happen.

[George Campbell]

I mean, they could probably right now throw five grand into a savings account after all expenses are paid and have 60 grand and within 12 months. Yeah, that's the math of it. So we're talking about, you know, even eight months from now, you could start the program and cash flow the rest of it. And so I would crunch the numbers in the budget and go, okay, this is what life would look like if we pursued this right now. Now we could put this toward a down payment instead. Here's what that would look like to get into a home sooner. But I think doing it all at once is where people get trapped.

[Jade Warshaw]

Yeah.

[George Campbell]

Because then you're, you're stuck, you're stuck with the student loan payment, you're stuck with the mortgage payment. And now staying home, it's, it's an emotional choice, but the financial piece just doesn't work.

[Jade Warshaw]

Well, the baby, the baby part in the mix is really the biggest unknown because nobody, no, no woman knows exactly how they're gonna feel. Like, you think, oh, I think I'm gonna want to work. And then you end up not wanting to work. Or you think, oh, I want to be a stay at home mom. Then you're a stay at home mom. You're like, I gotta get back to work.

[George Campbell]

I need to be around grown adults and be able to use the bathroom. That would be nice.

[Jade Warshaw]

Yes. Yeah.

[George Campbell]

No, my. My wife, she dealt with that. She was here at Ramsey for nine years and she came back to work for months and it just, it weighed on her. She went, I gotta. I gotta be home. But we wanted at least try. And financial peace gave us those options to go. Hey, we're debt free. You can do what you want. We don't have a mortgage payment. You want to stay home? Let's do it. So she's. She's thriving in the chaos right now. That puts this hour of the Ramsey show in the books.

[Dave Ramsey]

Don't let big grocery bills spoil your holiday plans. Shop at Aldi first. They've got USDA choice meats like beef, pork, and even your turkey, along with fresh produce, holiday desserts, and more. And you'll find all of them at the lowest prices of any national grocery store. A family of four can save up to $4,000 a year by shopping at Aldi. You don't need a membership or some loyalty app either. So stop overpaying this holiday season. Go to Aldi US to find a store near you that's Aldi US Savings.

[George Campbell]

Based on regional analysis of Aldi versus select competitors. Prices may vary by location, product availability, and the market foreign. Welcome back to the Ramsey show in the Fairwinds Credit Union studio. I'm George Campbell, joined by Ramsey personality Jade Warshaw. And we're taking Your calls at 888-825-5225. Stephanie is in South Dakota. Up next, what's going on? Sleep. Stephanie.

[Jade Warshaw]

Hi.

[Caller]

Thank you for taking my call. I've been married for about nine years and I've always had a job that I was able to adjust to my kids schedule and my husband's schedule. Recently I decided to go back to school to advance my career and my husband got injured so he hasn't been working for six months and I got a second job that more aligned with school and my new career. So my husband's about to go back to work and he informed me that he's expecting me to go back to my original field and Work around him, essentially. How do I have that conversation with him that I hope that his new job can kind of correspond with what I want to do in the future?

[Jade Warshaw]

Wow, that's interesting. Was, is, is his request income based? Were you making more at the other job?

[Caller]

No, he actually wants to quit his job and find a brand new field. He's, from what he says, he's inspired by me.

[George Campbell]

Okay, so you're both on your Eat Pray Love journey here, trying to find your dream job. But we got all pay the bills as well. So where are we at financially?

[Caller]

Financially we are pretty much just keeping our head above water. I'm ON BABY STEP 1.

[George Campbell]

Sounds like not a great time to Eat Pray Love. Would you agree with me?

[Jade Warshaw]

Yes.

[George Campbell]

Okay, so how much debt do you guys have?

[Caller]

I would say probably. Well, I just started school, so, so I'm in my first semester that one with everything I say about 25,000.

[Jade Warshaw]

All right.

[George Campbell]

Is that total debt between the two of you?

[Caller]

Yes. We're renters. We only have car payments and credit cards.

[George Campbell]

Okay, and how much are you making currently?

[Caller]

I've made about 45.

[George Campbell]

Is that with both jobs?

[Caller]

Yes.

[George Campbell]

Okay, and how much does the main job make?

[Caller]

Close to 70.

[George Campbell]

What happened to the 45? I'm confused now.

[Caller]

I'm sorry. I make 45, he makes close to 70.

[Jade Warshaw]

Oh, wow.

[Caller]

From what he tells me.

[George Campbell]

And I thought he wasn't back at work yet.

[Caller]

He just started getting workers compensation, so it's kind of evening out. That's how I got to baby step one. But he, what he wants to do is he wants to, he's on a manager level. He wants to step down from being a manager, which would, I don't know what exactly he wants to do, but it won't be nowhere near what he's making know dream. Yeah, I, I, I, I guess.

[George Campbell]

Or is the dream a different field? Because the manager life stresses him out. So right now he's wanting to downshift. But long term he wants something different.

[Caller]

Yes. I need to support him and have an open schedule so he can find himself.

[Jade Warshaw]

But how can you? Because when George said, what does he want to do? You said, I don't even, I don't know what he wants to do. How can you support something if you don't know exactly what it is? So that's my thing.

[Caller]

Yes. The closest thing I got was that he wants to go back to school and be a barber.

[Jade Warshaw]

Okay, well, that's pretty clear. He wants to go back to school, be a barber, he wants to be own his own shop or. Okay. And has he put in any numbers or timeline or anything around that?

[Caller]

Not really. It kind of scares me though because with my tool I know like the first five years is like you don't really see a profit.

[Jade Warshaw]

Yeah.

[George Campbell]

And well, you're probably renting a chair at first. You know, he's not just going to start a shop out of nowhere and be making bank. It's going to take time to build that up.

[Jade Warshaw]

And what's your dream? So right now you're in this career making 45, is that the dream career that you're doing now?

[Caller]

I'm staying in the healthcare field, but I'm making a little bit of switch. With the degree I'm going for medical administration, I should be able to have more opportunities.

[Jade Warshaw]

What does that mean?

[Caller]

Like right now I'm a cna, so to move up I will have to, to get some code license. With the new, with the degree I can work as a scheduler. My dream is to be a nursing home administrator.

[Jade Warshaw]

Okay. And how?

[Caller]

Anywhere, go ahead. Anywhere between that I'll be making way more than I'm making as a cna.

[Jade Warshaw]

How much is way more?

[Caller]

Nursing home Administrator started at 90, I think about 90k.

[Jade Warshaw]

And what's the timeline on yours about.

[Caller]

To get my degree, three more years and then six months training and then I can go into the field.

[Jade Warshaw]

Okay, so your dream is a three year and six month journey. And how much does it cost altogether?

[Caller]

I'm after student loans. I should have probably extra 30 in debt.

[Jade Warshaw]

So you're saying you would have to go into debt to do this?

[Caller]

Yes.

[George Campbell]

On top of your 25, you're saying you would add to the 25 in debt, you'd add another 30 to finish the program?

[Caller]

Yes.

[Jade Warshaw]

Does his request, in his mind, does his dream require debt?

[Caller]

He sees us. No, but barber school does cost, I believe from what I saw, 7,000, 7,000 up, depending where he goes.

[Jade Warshaw]

Okay, so his schools cost 7,000 and up. What is your school cost? Did you say 30,000? Yes. Okay, so here's what I'm thinking about. I'm. I'll be honest, I don't like the way he framed it. It kind. And I don't know if he's framed it like that or you framed it like that. But it kind of felt like his thing is more important than your thing thing. And yeah, that would rub me the wrong way too if it really came out like that. But when I'm just sitting here looking at the numbers and the timeline and the risk on this I'm going to tell you what I see and George hit me. I do feel like his is more risky because it is him building a business and going into hair industry. I feel like it's. It takes a lot of time to get that margin to start making money. However his. So I'm going to say that his is more risky, but I'm going to say that his is cheaper and has a shorter timeline line. And then for yours, I'm going to say it's more straight ahead. Like you get the certification, you get the job, you get the salary, right? It's pretty straight ahead. So on the actual landing of the job, there's less risk. But the problem is yours is very expensive and you can't go into debt for this. And it's a longer timeline. So you guys have to decide, is it even possible in the state that you're in to be able to cash flow what you're trying to do do? Because if you can, I might go your route.

[Caller]

Well, as of right now, they put my student loans that I don't have to pay into after I graduate. However, I'm still making payments on it, so. And I'm also doing 3, 4 of full time. So I'm, I'm not, I'm not hitting that they have. It's a junior college, so I'm not hitting that top tuition. I'm trying to save money while doing it.

[Jade Warshaw]

But you still can't go into of debt at your old job. The job that he wants you to go back to, what were you making on that job?

[Caller]

That one by itself allowed 30k.

[Jade Warshaw]

I thought it was, I thought that was the better job.

[Caller]

That one was better because just for time, that's. Yes, the flexibility.

[George Campbell]

Okay, well here's the thing. A starting barber probably going to make 15 to 20 bucks an hour. He's probably gonna make 35k a year instead of 70. And so this dream needs to make sense. And for that to make sense, you guys need to be in a much better place financially. So leaving this whole situation with 55,000 in debt and cutting your income in half while you still have years of schooling to go before your income goes up is a recipe for disaster. Do you agree?

[Caller]

Yes.

[George Campbell]

So we need to just delay the dream right now, clean up our financial mess and try to avoid going into further debt. So if you can cash flow your whole schooling and pay off your debt, then we can focus on his dream and we can cash flow seven grand easily, ten grand and get done with barber school. And then he can Take a pay cut for a temporary time and you'll be okay because you're making 90 grand with no debt. He has the freedom, right?

[Jade Warshaw]

Okay, but please, the number one takeaway, you cannot go into debt for this degree. If you go into debt for this degree, it is going to put such a strain on all of this. And not you going, like, especially you going, you're going first. And adding that debt is going to make it even harder for him to get to his dream. So please do.

[George Campbell]

You'll be dragging each other down if you do it this way. And that's our fear. We want to see you guys work jobs you enjoy so much. So we're going to gift you Ken Coleman's get clear assessment. I think both of you should take it and make sure that whatever field you end up in, there's no regrets. So hang on the line, Stephanie. We're going to make sure you get those resources from our friend Ken Coleman. This show is sponsored by Better Help. All right, this time of year can be tough, so I want you to make sure you check on your friends and your loved ones and even reconnect with people you haven't talked to. I recently called one of my childhood friends and we had an amazing catch up conversation. We laughed hard and we talked about the struggles we've been having. It was fantastic. And just like it can take a little courage to send that message or grab coffee with someone you haven't seen in a while. Reaching out for therapy can also feel hard, but it can be worth it if you're thinking about therapy. I recommend Better help with over 30,000 therapists. They've served over 5 million people globally and they have an average rating of 4.9 out of 5 stars. Stars. It's totally online so it's easy to fit into your schedule to get started. You just answer a few simple questions and BetterHelp will connect you with a licensed therapist. If it's not the right fit, you can switch therapists at any time for no extra cost. This month, don't wait to reach out. Visit betterhelp.com Ramsey to get 10% off your first month. That's BetterHelp. H-E-L-P.com Ramsey. Patricia is in Atlanta up next. Patricia, welcome to the show.

[Caller]

Thank you for having me.

[George Campbell]

Absolutely. What's going on?

[Caller]

Well, I am an 82 year old widow and my husband was a mattress. So saver.

[George Campbell]

Oh, wow.

[Caller]

Yeah. Money under the mattress.

[George Campbell]

Okay.

[Caller]

And I've got, I've got this hunk of money and I I don't think there's anything I can do with it. I'm afraid to try to do something with it.

[Jade Warshaw]

How much?

[Caller]

It's over a hundred thousand.

Wow.

[George Campbell]

How long was he saving that for?

[Caller]

25 years.

[Jade Warshaw]

Okay, is that your only money or is there other money? Is there any money in the bank?

[Caller]

I have about 400 in CDs and I, I bought my house cash and it's about 425 now. Pay off car.

[Jade Warshaw]

Okay.

[Caller]

I got 1400 in Social Security, which is income, you know, that's what you're living on.

[Jade Warshaw]

I'm sorry, the 1400. Do you live solely on the 1400 Social Security?

[Caller]

I do my best.

[George Campbell]

Wow, that feels tight. What are your expenses every month?

[Caller]

Oh, just a regular utilities and homeowners insurance, car insurance, that type of thing. You know, just the regular day to day expenses that a person has. I don't eat much.

[Jade Warshaw]

Now can I just clarify when you said 400 and CD fees. $400, not 400.

[Caller]

400,000.

[Jade Warshaw]

Okay, 400.

[George Campbell]

Is that essentially your, your nest egg just in case break in case of emergency? What are you using that for?

[Caller]

I'm. I just afraid to spend it. That I'll run out of money before I not here any longer.

[George Campbell]

So you want to deposit the hundred in cash? What's, what's the question?

[Caller]

The question is I've asked other people and they say if you try to just take this big chunk of money and put it in the bank or buy something with it, the internal revenue is going to come and say where in the world did you get this $100,000 in cash?

[George Campbell]

I mean, I don't think they're going to take you into a room and interrogate you. The bank legally just has to file a report. Anything over 10 grand, they just have to file a report. Report saying that you deposited the money. They might ask you, you know, the source of the funds. You can say my husband, you know, saved cash in a safe for years. I'll be honest, it's not illegal.

[Jade Warshaw]

I care more about the 400k in CDs than I do about the 100k in cash. I'd love to see you invest that 400k. That way if you want to draw a little off of it, you can and you don't have to worry about it depleting.

[Caller]

Well, the only thing with that is I don't know anything about stocks or anything or money market accounts or what, you know, all those.

[Jade Warshaw]

What if you had someone, what if you had someone who you could interview and Then help you with that.

[Caller]

Well, I probably would listen to them and see what they had to say. For sure.

[Jade Warshaw]

Yeah, I think having a smartvestor pro would be, would be good for you. And these are people that we vet and we make sure that, you know, they're good and that they can teach you and help you to feel good and understand, hey, this is what it is. And you feel good about the investment. It's not them just taking the wheel and doing everything for you, you, but it's you making sure you have skin in the game, understanding it, approving what's taking place. And that way. Yeah, I mean, living on 1400 is slim pickings.

[George Campbell]

Yeah.

[Jade Warshaw]

So that way you can get, you.

[George Campbell]

Can live off more and they can run the numbers for you and show you, hey, this is a conservative take on what you could withdraw from this without it depleting in the next five or 10 years. And so they can show you all the math. They're not going to put you in some risky single stock or crypto or something that you're not comfortable with. You stay in the driver's seat, but they're just educating you on what your options are and then you make the choice. So that's what I would do. I would go deposit the 100 cash today and I would make sure you have most of that money invested so that it can grow for you. Because that 100k, as you know, has been eaten away by inflation. What you could buy with 100k back in the day versus today, it's different. And so you need that money at least growing at the speed of inflation, ideally more to beat it. And so that's what we're advocating for.

[Caller]

Okay, that sounds interesting.

[George Campbell]

Head down to the bank with your, with your winnings. I think they'll have a good laugh if you say, well, my husband was a mattress saver. They go, yep, we've seen one of these today. You know, can you imagine?

[Caller]

That's right.

[Jade Warshaw]

Stuff in a suitcase with a hundred thousand and just heading down to the bank, you just stuff your duffel bag and just head on down.

[George Campbell]

I gotta know, you know, was this mattress lopsided with all this cash underneath it? I'm hoping it was in a safe or something. Something that's ideal.

[Jade Warshaw]

But even still, the fact that you gotta get into your car and drive with on your person, I would, I.

[George Campbell]

Might have an armored vehicle for that.

[Jade Warshaw]

I would get a pit bull to walk everywhere with me just to be sure.

[George Campbell]

Good luck, Patricia. Be safe out there. Brittany is in Idaho. Up next what's going on? Brittany?

[Caller]

Hey, thank you for taking my call. I'm trying to figure out what to do with my car. I owe about $12,600 on it. It's valued at 5 to $6,000 according to Kelly Blue Book. It needs some repairs, currently about $2,500. And at this point, should I voluntary surrender the car back to the lender or keep pushing through and pay it off and get it fixed?

[George Campbell]

What do you make?

[Caller]

I make about 4,200 a year.

[George Campbell]

42,000, you mean 42,000? Yeah. Okay. You scared me. I was like, goodness gracious, Brittany, what's going on in your life?

[Caller]

Life.

[George Campbell]

You're making $2 an hour out there. Okay.

[Caller]

Yeah.

[George Campbell]

All right. So this car, you're underwater on it severely. You don't have the money to do the repairs. And I, I've never suggested a voluntary repo because here's the problem. They're going to sell it at auction and still come after you for the difference. So you're better off selling the car for what you can get for it and getting a personal loan from your credit union because you're, it's not going to really release you from your situation here. Okay, so how much money do you have right now.

[Caller]

Saved? I have about 3,500. I'm on baby step number two and the cars, my last dead.

[George Campbell]

Okay, so you have the money to do the repair, but it, it feels like, is this worth it? Is that your issue here?

[Caller]

Yes.

[Dave Ramsey]

What?

[George Campbell]

Well, there's two options. One is you do the repair, you eat the cost, and hopefully the car runs for the foreseeable future and you pay it off. That would be nice, right? That would solve the problem. How quickly could you pay off the remainder? 12 grand if you did the repair and then started knocking out the 12 grand?

[Caller]

I am permanently disabled, so I'm limited with my funds. Paying my monthly car payment is the only non economic pay.

[George Campbell]

So you can only make the payment and nothing more. You can't put extra on it. So. Which means this is going to keep dragging out. You're going to continually be more and more underwater as the loan probably balloons.

[Caller]

Correct.

[Jade Warshaw]

Tell us about the car. Is it prone to issues? Has it just been having issue after issue or is just this just popped up and you're like, dang it. No.

[Caller]

This is the first issue I had since I found it. It's a timing belt that's going out. I, I've been told if I keep driving it, if it breaks, it'll affect the engine. So I've been advised not to drive it even though I still drive it a little bit every now and then. I don't drive a lot, so it's been working for me. But I'm worried that if I keep risking it, I could push my luck.

[Jade Warshaw]

Yeah.

[George Campbell]

Have you gotten other repair quotes from other mechanics?

[Caller]

Mechanics I have. The 2500 is the cheapest I found. I've went to three different places now.

[George Campbell]

If you, if you did the 2500 in repairs, could you sell it for more.

[Caller]

With the repair? With it fixed, it's. It's going to be about 5 to 6,000.

[Jade Warshaw]

Okay. And so let's pretend, let's. So if you, if you took 2500 out of your saved money, paid this off at what rate? Or I'm sorry, took that money and repaired the car, the car is driving at what rate would it take you with the income you have nothing extra to pay off the. I mean, what's remaining on the loan as far as time?

[Caller]

That's a good question. I'm not quite sure. I know I owe 12,600 left and I pay about $400 a month.

[George Campbell]

Month. Have you tried going to your local credit union and seeing if they would give you a loan for the difference to at least get out from under this?

[Caller]

I haven't. I don't have the best of credit. I had a lot of medical issues when I became permanently disabled and it messed up my credit.

[George Campbell]

That's one angle. You can try and then use your savings to get you a beater car to get by for now. But there's still bigger problems to solve here and that's going to take getting the income up and getting rid of this debt. It's going to be a journey. Hey guys. It's open enrollment time for health insurance.

[Caller]

And if you have ever felt overwhelmed.

[George Campbell]

Trying to figure out your health care costs, you are not alone.

[Caller]

For a lot of families, healthcare is one of the biggest line items in the budget and it gets more confusing every year.

[George Campbell]

But you don't have to settle. Christian Healthcare Ministries is a biblical and.

[Caller]

Budget friendly alternative to health insurance and I am proud to recommend them.

[Jade Warshaw]

With chm, you are joining a community.

[George Campbell]

Of believers who actually help share each other's medical bills. Yeah, it's true. Members have shared over $12 billion in healthcare costs since CHM started nearly 45 years ago.

[Caller]

And?

[Jade Warshaw]

And it's simple.

[George Campbell]

You choose your provider with no network limits.

[Caller]

You submit your eligible bills online and other members help share your expenses.

[George Campbell]

CHM has program options for every stage of life, whether you're single, self employed.

[Caller]

Or raising a family, y'.

All.

Open enrollment has a lot of people.

[George Campbell]

Scrambling right now, but CHM lets you join anytime, so go to chministries.orgbudget to check them out. That's chministries.orgbudget.

[Jade Warshaw]

All right, George, I'm hearing something very crazy about your social media.

[George Campbell]

Tell me more.

[Jade Warshaw]

I happen to pop on there and. And I saw you had a view, a video with 14 million views. Yeah.

[George Campbell]

It got out of control.

[Jade Warshaw]

That's wild.

[George Campbell]

So we did a man on the street. I love getting in the streets, getting in people's business, asking them questions about finances. And we happened to be in Orlando recently, and I said, let's go to Disney. So we went to Disney Springs and we asked people how much debt they had, and our team just clipped that on social media, and it blew up with a lot of feelings, I'm sure. And so I wanted to get your feelings about it and react to it in real time, if you're willing, because there's some trigger words in here that I think you'll have some thoughts on.

[Jade Warshaw]

I'll be honest. Is it weird to you that I saw, like, the little icon on social and I saw the views, but I didn't actually watch the video?

[George Campbell]

It's hurtful, but understandable. You're a busy woman. You don't have time to watch all my content.

[Jade Warshaw]

Okay, I'll watch it. I'll watch.

[George Campbell]

Okay, let's watch it along with America, see what they have to say. Are you guys in any kind of debt right now? Mine's pretty minimal, I think. Credit card and a vehicle, probably about 60. And that's minimal to you? No, it's a lot. What's left on the car loan? 53. What are you driving? A 24 Toyota Tundra. How about you? How much debt do you have?

[Caller]

Probably 75,000 credit cards and then car loan as well.

[George Campbell]

What's your car loan?

[Caller]

Student loans?

[Jade Warshaw]

Yeah, like 60.

[George Campbell]

60. What are you driving?

[Jade Warshaw]

I was.

[George Campbell]

You rolled over negative equity, didn't you?

[Jade Warshaw]

I did, yes. Honda Pilot 25. What's your car?

[Caller]

1,200.

[George Campbell]

How about your car payment? 982. I mean, you're just giving away the income every month at this point, right?

[Jade Warshaw]

Yeah.

[George Campbell]

Yeah. How much student loans we have left?

[Jade Warshaw]

I probably have 100,000 in student loans.

[George Campbell]

Okay, add it all up in your head. I think we're doing this for the first time. How much debt do you have? Total? Total? Total.

[Jade Warshaw]

I'm gonna say at least 180 grand.

[George Campbell]

Can you tell me, did you guys pay cash for the trip? For half of it. The other half is on, what, a Disney card? Disney credit card. What do you get for putting it on the Disney card versus any old other card?

[Jade Warshaw]

It has six months special financing, so.

[Caller]

There'S no interest for like six months.

[George Campbell]

Okay, so is your plan to pay it off in six months? That's the plan.

[Caller]

That is the plan.

[George Campbell]

If we can do that. For sure. Yeah. That doesn't instill confidence. You're like, if we. Because otherwise it's gonna like crack and crank up to what, 29% APR or something crazy. Yeah, absolutely. Do you guys have any debt right now?

[Jade Warshaw]

Yes.

[George Campbell]

How much? My student loans.

[Jade Warshaw]

They're about 100,000.

[George Campbell]

What was your degree?

[Caller]

Business administration.

[George Campbell]

How much total do you have in debt?

[Jade Warshaw]

Probably around 128,000, I'd say total.

[George Campbell]

Do you ever feel like I'll just die with the debt? Like, what's the. Is there a game plan to be like, I'm going to pay this off in three years or is just kind of like, I'll make my payments.

[Jade Warshaw]

It's going to be probably about 15 years.

[Caller]

I'm assuming I'll get it paid off. I don't know.

[George Campbell]

How old are you now? I'm 22.

[Jade Warshaw]

Oh, man. Oh, man.

[George Campbell]

So much to unpack. And that was just a minute 49. The video is 15 minutes. If you want to watch the whole thing. Thing on my YouTube channel, George Camel. We'll put a link in the show notes, more juicy stuff where that came from, including a guy who was, let's say, under the influence when he took out a car loan.

[Jade Warshaw]

Wow.

[George Campbell]

Oh, wow.

[Jade Warshaw]

You would. Wow.

[George Campbell]

Yeah. The interest wasn't the only thing that was sky high that day. J.

[Jade Warshaw]

Listen, I'd rather be able to blame it on that than me being in my right mind going into $60,000 of debt and a $1200 payment on a Honda pilot.

[George Campbell]

George. Of all things. So there's a few things I want to point out that were said. So, number one. Number one, the justification language. Well, it's minimal. Well, it's zero percent. Well, we were for. We had to.

[Jade Warshaw]

Right.

[George Campbell]

There's all the justification language that we hear on the show. I hear it in the streets, and I don't know if it's people. You know, there's some shame and guilt around it, understandably. So you make yourself feel better by saying, well, it's only 20 grand.

[Jade Warshaw]

Right. Right.

[George Campbell]

You know, those words bother me because I want them to feel the weight of It. And I think you're deflecting when you say, well, it's minimal, it's only. It's zero percent.

[Jade Warshaw]

Well, you make it seem like your back was against the wall and you other choice. And I'm like, here's my thing. If you were going to go into debt, did it have to be 60,000? There's plenty of great $30,000 cars out there.

[George Campbell]

I'm just saying that is true. And then the other part, the other part that shocked me was I'm like, I'm the first guy making you do the math on what you actually owe. So. I ruined a lot of Disney dreams. Yeah. The comments section, I didn't realize this, but they're like, these people are out here trying to have a good time and George is ruining their day.

[Jade Warshaw]

The guy in the poncho, when you told him that his interest was going to crank up to 26%, did you see his eyes? Like the look in his eyes, there was a sadness.

[George Campbell]

I don't know if it's because just a grown man in a poncho at Disney is just a sad sight anyways.

[Jade Warshaw]

Yeah.

[George Campbell]

But the fact that he was like, yeah, I mean, I hope we can pay it out. Like he did a thousand yard stare.

[Jade Warshaw]

Yeah.

[George Campbell]

Into another life. He's.

[Jade Warshaw]

You brought him into, you know, hello, darkness, my friend.

[George Campbell]

It was a lot going on there. And it was also frightening to see how much crippling debt people are in and they're just adding to the pile with a little disc. Disney trip. And I asked people how much their Disney trip cost. Jade, I did not know.

[Jade Warshaw]

All right.

[George Campbell]

Call me ignorant. I didn't know it was a lot. It's a thousand dollars a day per person to breathe.

[Jade Warshaw]

Yes.

[George Campbell]

In Disney.

[Jade Warshaw]

Yes.

[George Campbell]

And this is not a knock against Disney. It's a wonderful experience.

[Jade Warshaw]

Magical. I love Disney.

[George Campbell]

But the idea that you're going to go another six grand into debt or put it on the Disney credit card because they've convinced you this is the smart way to pay it boggles my mind. Because they're going to add that to the payment when they get home. On top of their 1200 car payment.

[Jade Warshaw]

Yeah.

[George Campbell]

They got a Disney credit card payment to make.

[Jade Warshaw]

How can even enjoy it in the moment?

[George Campbell]

That's what I'm saying. Knowing that I'm like, I can't be the one ruining your enjoyment. Your decisions have already ruined the enjoyment.

[Jade Warshaw]

It's like eating a meal knowing you're going to get food poisoning.

[George Campbell]

Oh, that's a great analogy.

[Jade Warshaw]

How can you enjoy it? Knowing what, what is the future holds for you.

[George Campbell]

There's going to be hell to pay on the other side of this, but I'm going to enjoy this queso right now.

[Jade Warshaw]

Oh, Lord. Why'd it have to be queso?

[George Campbell]

Sorry, I didn't want to throw queso under the bus. Goodness gracious. So I encourage everybody to, to watch that video. And if nothing else, I know why people watch. To make themselves feel better about their financial situation.

[Jade Warshaw]

Yes.

[George Campbell]

That's like, you know, entry to your Ramsey. That's why you watch the show.

[Jade Warshaw]

Yeah.

[George Campbell]

You can go look at this. I hope you go, you know what? This makes me want to fix my situation.

[Jade Warshaw]

I hope so.

[George Campbell]

And then third, you actually do this stuff and you want to send it to people to see. This is why the Ramsey plan is so important, you know, so well done, George. This is why I go into the streets, you know, in the rain with the umbrella. Umbrella. I really sacrificed for the content that day, but it paid off. So thank you to everyone. This is why I watched it, shared it, and just know my heart is not to shame people. My heart is to bring some awareness. Some, you know, some people are problem unaware. They don't know how bad their debt is. They don't know it's a problem. They just think it's normal to have payments. So the more we can shed a light on debt and say this is not normal and if it is normal, we need to run the other direction. Direction. That is the hope that we, we have for making content like this.

[Jade Warshaw]

Good job, George. I think you did just that.

[George Campbell]

Okay, let's go to Isaiah in Detroit. Up next. What's going on, Isaiah?

[Caller]

How's it going? I was just here. Let me tell you guys a little bit about my situation. So I'm 18 years old. I just graduated last year. And during the school year I started a mobile car detailing business. I've been in about eight months. Months, and so far I've been doing it part time, like with school and work. And I made about $3,000 from the business. And now that I've graduated high school and entered college, I realized that I want to learn more about business through actually doing it. So I decided that I wanted to move to South Carolina with a family member who runs a different business that doesn't really have to do with car detailing. But they are the closest mentor I would have and I wanted to go down there and move in with them. And they said I could stay there for a few months while I get up and running in the area. I currently have about $25,000 saved in my budget for the move is $8,000 to get a car and equipment and everything I need. My family thinks that it's super risky. I've completely lost my mind.

[George Campbell]

So you're doing this with cash. You have no debt. There's an established business that's going to pay you when you have arrive.

[Caller]

And so I would have to. I'm. So there's no job.

[Jade Warshaw]

Right.

[George Campbell]

They're not paying you to work in their business.

[Jade Warshaw]

They'll just mentor you. But you can get a job.

[Caller]

Yeah.

[George Campbell]

And you're willing to get any old job while trying to get your own business off the ground.

[Caller]

Yeah, 100%.

[Jade Warshaw]

I actually really like this. I think that school will be there. It's not going anywhere. College. Like what were you going to college for anyway?

[Caller]

I was going to college for business management.

[Jade Warshaw]

Yeah, I mean that degree is going to be there. I love on the job training. Like I love the idea that somebody would mentor you who's starting a business. Are they successful, this person or is this their first go round too?

[Caller]

Yeah, they are. They are pretty successful. They rent out beach supplies and they've been doing that for a good couple years and have made a lot of money.

[Jade Warshaw]

Huh. Yeah, I like the idea, man.

[George Campbell]

18, single. I think this is one of the least risky things you could do and I would advise you to do it cuz worst case you come back home. The key is don't go into debt for anything. Not for equipment, not for a degree. Cash flow every next move and then follow that path that it takes you as you cash flow this amazing business. I think it's a great business idea. Car detailing, big money to be made, especially if you can serve people well and you don't need a business degree to do it. You don't have to wait for Black Friday to get Black Friday deals. The sale is on now and that includes $12 bestselling hardcovers, $12 questions for humans decks $6.99 audiobooks and ebooks, $15 assessments and so much more. Go to ramseysolutions.com store or if you're watching on YouTube or podcast, click the link in the description. Jessica is in San Antonio. Up next, what's going on?

[Caller]

Jessica, Hi.

Thank you for taking my call.

[George Campbell]

Sure.

[Caller]

So my significant other and I are planning to get married and he currently pays child support and alimony from his previous marriage. I know once we're married the money in debt becomes ours, but I'm not sure how to handle those payments. Like specifically the alimony. So my question is have that, should that come out of our joint budget? Should that stay his individual responsibility?

Yeah.

[George Campbell]

What's the, the parameter? How much and for how long?

[Caller]

300,000 until paid off.

Wow.

[Jade Warshaw]

It's a lot of money. There's part of this where, you know, I'm always going to be for combining finances and taking on whatever the other person has in the form of debt and everything else. And in many ways this kind of. Is that right? Because you're getting into this situation together. I'm thinking through this and yeah, I think I would, it would be ours, the child's work. Otherwise here's how there would be separation there.

[George Campbell]

Here's how I'm viewing it and you can tell me what you think, Jessica. I'm almost viewing it as a deduction before his take home pay. So like you pay for health care out of your paycheck, your 401k. So if you just sort of took that, that out and then had his new take home pay, which is the lower amount post alimony, that becomes our money. I think that helps me frame it up differently mentally. I like that where it's, it is coming from his income, but there's still this pool that's our money. But we're just not going to see that money because it's not your money. It's. It has an allocation legally of where it needs to go right now. And it's not forever. And so this will change and it'll feel like you get a raise I guess when that day comes, when that 300 grand is paid off.

[Jade Warshaw]

But either way it's going to affect your world because it's $300,000. That would been part of you all's budget. That's not part of you all's budget.

[George Campbell]

Is it a set monthly amount?

[Caller]

No, not set.

[George Campbell]

Is it variable because his income is variable or how does that. What's the agreement there?

[Caller]

Yeah, variable income, quarterly bonuses. Yes, though he just pays it when he can. And I know we recently moved in together and I do allot him a specific amount to help cover the mortgage even though we're not married. And I know he did raise his alimony at the same time. So I know he's trying to get that paid off as soon as he can.

[George Campbell]

So when will you guys be married?

[Caller]

No set date yet. Because I am trying to logistically figure this out.

[George Campbell]

Okay.

[Jade Warshaw]

Okay. So this is kind of what's hold. Is this what's holding you back then?

[Caller]

Yes, I can see that.

[Jade Warshaw]

I could see that yeah.

[George Campbell]

What will you guys be making once you're married? And then what will your debt load be outside of the salimony?

[Caller]

So I don't know his exact take home. I know what he brings in after taxes and stuff, but I would probably say, oh gosh, almost 400, 350 to 400 I believe.

[George Campbell]

That's awesome.

[Caller]

A year.

[George Campbell]

And any debt to speak of outside of the mortgage and the alimony.

[Caller]

So his mortgage, full loan, car loan. And then unfortunately I been through the baby steps, but I had to buy a car. So just a small amount for me, but I'm actively going back around, so.

[Jade Warshaw]

So his mortgage is the plan that, what's the plan with the mortgage? Will, will you guys move into that house? Will he sell it and you guys move somewhere else? Because I'm almost wondering if he can take, when that day comes, if he can sell off an asset in order to get this done.

[Caller]

Yes, I know he mentions that that is his plan. I currently did move in with him and our plan is to sell the house he that we live in, finish paying what he owes to her, and then us purchase a new home together.

[Jade Warshaw]

Okay, well that feels like a solution there.

[George Campbell]

Yeah, I was kind of looking at it like if this was just a giant consumer debt, we'd go, all right, we'll just tackle it with whatever your income is because the sooner that's gone, the sooner you free up that money. So I think that's a good plan and I think it will unify you guys as a couple as well to just go, all right, this isn't how we either of us pictured it, but we have a 300,000 debt we need to pay off on top of our car loan and credit card cards. And I hope it gives you some onus to get rid of your own debts faster because the sooner you're on the other side of all of this, the more wealth you're going to build together and the more options you're going to have.

[Caller]

Yes. Okay.

Yeah, that makes sense. Thank you.

[George Campbell]

Yeah, absolutely. That's a tough question.

[Jade Warshaw]

It is.

[George Campbell]

It's a lot intertwined in there.

[Jade Warshaw]

I kind of feel like they did complicate it a little bit by moving by her already moving into there towards.

[George Campbell]

The mortgage, which is more complications. So I don't love that part. It's only going to add insult to.

[Jade Warshaw]

Injury because she could have sat back in her own apartment and said, hey, like you've got this three hundred thousand dollar debt, why don't you sell off something and clean it up? Like, but now since they're both in that house. Yeah.

[George Campbell]

Anyway, thanks for the question. Mary Kate is in Phoenix. Up next. What's going on? Mary Kate?

[Caller]

Hey, how's it going guys? Thanks for taking my call.

[George Campbell]

Absolutely. What's your question?

[Caller]

So this is an interesting one. I just started listening to the show a couple weeks ago. So I literally just started like going through my debt, starting to pay off my debt. I paid off my car, which was the first kind of lowest debt that I had gotten to a car accident last night and totaled my car.

[George Campbell]

Oh my goodness.

[Caller]

So yeah, that was a.

[George Campbell]

Are you okay?

[Caller]

A bit of a surprise. Oh, totally fine. Yeah. Thankfully wasn't the at fault driver but you know, bummed that I just paid off my car and then I just got totaled. So curious to hear what you guys think. Think about this. I kind of know where. I'm guessing. I know where you're going to lean but don't have the money to pay for a car out, you know, outright right now. So I was potentially thinking of taking on debt to buy a car and then wait for the payoff for my insurance company, which is probably going to be between 30 to $40,000 and then just chuck that at the debt. Make sure I don't go like don't finance a car for more than that amount.

[George Campbell]

Well, how long until they write you a $35,000 check?

[Caller]

Yeah, that's what I don't know I'm getting.

[George Campbell]

Will they provide a rental car in the meantime?

[Jade Warshaw]

That's my question.

[Caller]

Yeah, I think they will. I can, I can also pay for that out of pocket and then get reimbursed for that. It's probably going to take about a week until I could get a rental car. But I, you know, I kind of need one right now. Why would it take out of pocket?

[Jade Warshaw]

Why would it take a week to get the rental car?

[Caller]

From what I understand, I've never been in an accident for. This is all very new to me. But from what I understand, the insurance company needs to wait for liability to be confirmed from the police report and things of that nature.

[Jade Warshaw]

Well, could you rent one on your own dollar for that week or whatever and then switch to theirs? That's probably what I would do. I would not go into debt on a car and you know, have, have, have the, be at the mercy of the insurance on a car payment that's got interest that's accruing and everything like that.

[Caller]

Sure.

[George Campbell]

Okay, so you've already filed the claim that, that night?

[Caller]

Yep.

[George Campbell]

Okay. Has the adjuster inspected last Night.

[Caller]

They're, they're inspecting it today or tomorrow.

They, they towed it to like a, like the car body shop and they.

Should be expecting it today or tomorrow.

[George Campbell]

Okay. Because I'm thinking mo, most people will get that insurance check in about seven days. So I don't think it's going to be a super long time. I would just get whatever rental you can right now and I would also check with them before you do any of this, say hey, I need a car right now. What are my, what are my best, best options? And make sure that you know exactly what their amount is. They'll reimburse how soon, all of that, get all the facts. But I would not go jump into, you know, go to the dealership and say, hey, I need a brand new car. That's what most people do when they total their car. They go, woohoo, I won the lottery. Time to go get a $50,000 more than the payout. And they say, well I had to, I had, I had to get a new car totaled. Mine. What are you gonna do? And that's how we have, you know, a middle class America that, that's broke. So I hope that's not you, You've done so well that I'm like, why go backwards into debt even for a moment when you can avoid all of it?

[Caller]

Okay, okay, so wait to have that.

That payout in hand before I do anything. Basically, yes.

[George Campbell]

And you know, get yourself as nice of a rental you can with the reimbursement they'll give you.

[Jade Warshaw]

I'm sorry that happened.

[Caller]

Thank you. And quick question on the payout. That's not like a taxable event or anything. As long as I use it for.

The purchase of a new vehicle.

That right?

[George Campbell]

Yes. Because you weren't like making money here. This was not a money making scheme where you sold the car for more than it's worth. You know, insurance is valuing that car at what it, what it was valued when you wrecked it. So nothing to worry about there.

[Caller]

If I, if I get a $40,000 payout and I go buy a car for $20,000, you can do that.

[Jade Warshaw]

And if you have debt, I love that plan for you.

[George Campbell]

Because if you had sold that car for 40 and used 20 of it to buy a car, that's your American right. And I would honestly do that if I were you. If you've got other financial goals, other debts to pay off, it's only going to, you know, make your life simpler. And a 20,000 car will get you real far. These days.

[Caller]

Foreign.

[George Campbell]

Welcome back to the Ramsey show in the Fairwinds Credit Union studio I'm George Campbell joined by best selling author Jade Warshaw. Open phones at 888-825-5225. Claude is in Orlando, Florida. Up next, what's going on Claude?

[Caller]

Hey, how y' all doing?

[George Campbell]

Great. How can we help today?

[Caller]

Okay, just long story short, I haven't paid my RS in several years. Basically I got out of High School 0708 kind of fell into a good job working for foreclosure companies and started buying up foreclosures and kind of amassed about got about 267 doors rental but it's all paid for. But I'm at the point I just bought a house through private financing but I would like to see here permanent financing. But I haven't done my federal taxes in several years and they're gonna want.

[George Campbell]

To see tax returns for you to get that financing.

[Caller]

Yes sir.

[George Campbell]

And this is the only reason you've decided? I guess you should probably deal with that? Why haven't you filed?

[Caller]

I'm just kind of ignorant I guess.

[George Campbell]

No, you're not ignorant. Ignorant people don't own 27 rentals.

[Jade Warshaw]

Thank you. Thank you.

[George Campbell]

You're very successful. So what has caused you to just ignore the taxes completely? Cuz you file taxes up until what year?

[Caller]

I think the last time was 16. I did it.

[George Campbell]

Okay, so we're coming up on 10 years and nobody's knocked down your door yet. You haven't got anything in the mail?

[Caller]

No sir, I haven't. I don't really on paper I guess show making a bunch most of that.

[George Campbell]

Incomes in cash and you've spent it. Do you have the money to pay all these back taxes, penalties, fees?

[Caller]

I don't have any idea what it would be.

[George Campbell]

Well how much have you made in the last 10 years?

[Caller]

I mean I'm anywhere from 10,000amonth to 15,000amonth just depending on my. I got a lot of irons in the fire.

[George Campbell]

So you're Talking about making 150 to 200 grand every year for the last decade.

[Caller]

Yeah, I mean this slowly escalated year to year.

[George Campbell]

All right, I'm going to call it half a million. Just ballpark numbers. How would you come up with half a million dollars to pay the irs?

[Caller]

That's a good question. I mean I figured up the other day when before I got came on here, I got about conservatively $4 million in real estate.

[George Campbell]

So it sounds like if I were in your shoes, here's what I would do personally, number one, I would get with an enrolled agent or CPA yesterday and start tracking down exactly what I need to do to get current, get on a payment plan and get this mess cleaned up. And then whatever that bill total is, if it's $500,000, I'm not even going to get on a payment plan. I'm going to liquidate enough properties that I knock this out.

[Caller]

Mm. I mean, should I be even reporting the cash?

[George Campbell]

You should report every dime you make. Give to Caesars. What is Caesars? So I know you want to avoid that. I don't know if you're going to take my advice, but I don't want to. I don't want the next phone call from Claude to be from a jail cell.

[Caller]

Yeah, that'd be ugly.

[George Campbell]

Yeah.

[Jade Warshaw]

You got to do this with integrity, my guy.

[George Campbell]

Like, the last people you want on your back is the irs. They can destroy your life.

[Caller]

I know that's right.

[George Campbell]

And so I would not ignore this any longer. It's been almost a decade. What are you going to do next?

[Caller]

I guess I need to go to a cpa.

[George Campbell]

That's right. And you're going to need to get with the IRS and get and figure out exactly what you owe, and they can help with that. But do not avoid. I know you deal with a lot of cash. I would get things on the books. I would have everything, every I dotted, every ticket crossed.

[Caller]

Okay.

[George Campbell]

And that might mean you need to hire someone to do the books. If you don't like doing it, you don't want to do it. I would hire someone who can do it.

[Jade Warshaw]

The good news is you have the assets to clean this up very quickly.

[Caller]

Yeah.

[George Campbell]

How much debt do you have otherwise?

[Caller]

I mean, I've already 165,000 on that house from that private investor, but, I mean, I've got. I've been offered 275 for it, like it is, but besides that, I. I don't owe a dime.

[Jade Warshaw]

All the 26 properties are free and clear.

[Caller]

Yeah.

[George Campbell]

So could you sell one or two of those to knock out this IRS debt? Worst case?

[Caller]

I mean, I've been doing letting a few go, but the dagum property taxes and other unforeseen things are eating me up.

[George Campbell]

It just doesn't make sense. Why are you so tight on cash? I mean, just if you're all paid for, they should be cash flowing beautifully. Are you just spending every single dollar you get?

[Caller]

No, not. Well, okay, so I bought all these houses kind of cheap several years ago over the last several years. And Then I was just shoving people in them doing the minimum. And so now I'm kind of paying the popper on that. So when they're coming open, I'm spending a fair amount of money on repairs.

[George Campbell]

And maintenance and all that because you neglected to do it.

[Caller]

That's right, man.

[George Campbell]

That's part of the business. I. You know what? If this is too much for you to handle, I would liquidate a bunch of properties and just keep. Keep what you can actually manage and manage well.

[Caller]

Well, I mean, it's my soul. It's my main income.

[George Campbell]

Yeah, but if you liquidated the properties, you'd have something called money. And right now it sounds like you're tight on cash flow for some reason because you're just bleeding out with 27 properties to manage. It's more expensive.

[Caller]

Yeah, I mean, if I have I got a few thousand bucks left over at the end of the month. I'm doing good. I'm not.

[George Campbell]

I'm just confused. For a guy who doesn't pay taxes and makes 15 grand a month, you shouldn't be this broke.

[Caller]

Well, I'm. I'm at about 10 right now. I mean, if I got everything full.

[George Campbell]

I'm at 15 out of 27 properties. You're only making 10 grand a month? Yeah, they're all paid for.

[Jade Warshaw]

Properties are these I've got.

[Caller]

Well, it's definitely low, low income stuff like.

[Jade Warshaw]

Okay.

[Caller]

I mean, I bought some of these things in zero nines, but when I started buying, I mean, I bought you things for $5,000.

[George Campbell]

So you're making like a few hundred bucks off each one. One.

[Caller]

A few hundred do. I mean, I'm. The bottom of the rent in my area is like 600 bucks. 600 to.

[George Campbell]

Okay, I'm just saying you have 27 properties and you make 10 grand off of those. That's 370 each on average.

[Caller]

Yeah, and I've got like five empty right now.

[George Campbell]

What would vacancies too?

[Jade Warshaw]

What would it look like if you sold a couple of these low income properties and got some nicer properties where you can garner a higher, you know, a higher rent and still pay for them fully in cash. And then Instead of having 26, maybe you have 10. Right. Or maybe you have eight.

[George Campbell]

They're higher quality. Higher quality tenants pay more.

[Caller]

That's kind of what I've been doing. I just sold one last week for 55,000 that I bought for 10, but I paid 40,000 in property taxes.

[George Campbell]

What about the capital gains on those?

[Caller]

That's what I'm. I don't I don't know.

[George Campbell]

Oh my goodness. So on top of your income, you could have a huge capital gains bill from all these investment properties that appreciated since 09 when you bought them for, you know, pennies on the dollar.

[Caller]

Right. But I've never depreciated any of them either.

[Jade Warshaw]

Wow. You need, I think you need help. I think you need somebody to help you with the, the financial, like the books on this and help you to understand what it is that you're doing.

[Caller]

Yeah, well, I also had a secretary that was embezzling money too.

[George Campbell]

Oh, no. Goodness gracious.

[Jade Warshaw]

Wow. I think, I think the word for you in the new year if, because I'm already talking about the new year is simplification.

[George Campbell]

Yes.

[Jade Warshaw]

You need to simplify your life. You got a lot going on.

[Caller]

Yeah.

[George Campbell]

But right now you've just been ignoring it and it's just compounded and compounded and so now it feels so overwhelming. So I would jump on a Ramsey solutions dot com, get in touch with Attacks pro today and they're going to have their hands full with you. You might be their full time client for the next few months as they uncover and turn over every stone that you have left to rot. So goodness gracious, Claude, I'm sorry you're dealing with this, but man, neglecting the problem is not going to make it go away, especially when it's the irs.

[Jade Warshaw]

Wow.

[George Campbell]

Good luck.

[Dave Ramsey]

You spend hours researching before making a major purchase like a home or car. But it's also a good idea to put in the work searching for the right insurance company coverage to protect your biggest assets. I recommend using Ramsey trusted Pros. Whether you're looking for car, home or any other type of insurance, Ramsey trusted providers have been coached and vetted to serve you like we would find what you [e-mail] insurance.

[Caller]

Foreign.

[George Campbell]

It's that time of year. In a few weeks, we're going to be doing a special giving edition of the Ramsey show and we want to hear stories from you about how you have given generously this season. Maybe you've tipped a waiter, a waitress 100 bucks or bought Thanksgiving dinner for a family who couldn't afford one. Maybe you've blessed someone in need by giving them a car, doing something outrageous. Maybe you've been on the receiving end and you had your life changed or affected by someone who gave generously to you. We want to hear those stories. Dave Ramsey and I will be doing that giving show and it's going to be a lot of fun. So go to ramseysolutions.com/a S K and put giving in the subject line. And we do this every year at Christmas time. It's one of our most popular shows. Very heartwarming. Coming up December 18th. So start sending in your stories of giving today and let's celebrate living like no one else so you can can give like no one else. Sydney is in Columbus, Ohio. Up next, what's happening, Sydney?

[Caller]

Hi, guys. My husband and I are trying to figure out how to financially approach our home. We were given lead orders by our state health department. We're mandated to hire a lead abatement specialist to do some actually relatively minor work around our home. And the bill is going to be about $30,000.

Oof.

[Jade Warshaw]

Wow.

[Caller]

Yeah, we have five young kids, seven and under. We definitely don't have $30,000 laying around. And the state's giving us a year to come up with the money, get a it done or whenever they deem necessary. They could force us to leave our home that we own so we could get a home equity loan that's a kind of hefty payment. But I'm not sure we really have any other options.

[Jade Warshaw]

What do you guys earn?

[Caller]

My husband pre tax. What was 58,000 last year?

[Jade Warshaw]

And are you working outside the home?

[Caller]

No, I stay at home with the kids.

[Jade Warshaw]

How many kids and how old are they?

[Caller]

We have five kids, seven, five, three, two and six months old.

[Jade Warshaw]

Oh my goodness.

[George Campbell]

Now are you needing to do a full abatement? Have you checked on that?

[Caller]

I mean, we have the orders that the state gave gave us. There's, you know, a whole list of things that, you know, they give you what you need to fix and the control options to fix it, that sort of thing.

[George Campbell]

Okay, and have you gotten multiple quotes?

[Caller]

Yes, they're all between 29 and 33,000.

[Jade Warshaw]

So I kind of run this backwards. I mean, if you said 30, that's right in the middle of the road. So I'm thinking, okay, I have a year to do that. I have 12 months to do this. That's about $2,500 dollars a month. What can we do to bring that money in so that we can have this process started in time? So as it, as it sits, after you guys bill, after your bills are paid, how much margin do you have to go towards your debt or whatever, whatever your financial goals are right now?

[Caller]

Maybe a couple hundred dollars a month?

[Jade Warshaw]

Like a couple hundred, like two or a couple hundred? Like five?

[Caller]

Maybe two.

[Jade Warshaw]

Okay.

[Caller]

It's, it's not a whole lot.

[George Campbell]

What does your husband do for work?

[Caller]

He's a mechanic for a neighboring county for the highway engineering department.

[Jade Warshaw]

And if you. What's your house worth if you were to sell it?

[Caller]

We have up up to, well, close to $200,000 in equity.

[Jade Warshaw]

And that's getting someone to buy it. Yeah. Is that with the lead? What is. What would it be worth with the. This lead issue going on?

[Caller]

I mean, it's actually about $30,000 less.

[Jade Warshaw]

Okay.

[Caller]

But the problem is getting someone that would be willing to buy it because the lead orders aren't with our name, they're with the address. So whoever would buy it would have to. They'd be in the same position that we are a contractor and do the work.

[Jade Warshaw]

Right. But that would be an incentive that you would have have in the sale. Like that would come from you. I. That's what I would think.

[George Campbell]

You'd lower the cost by that amount, knowing they're going to have to deal with it.

[Jade Warshaw]

Uhhuh. That's why we said less. 30,000 in the equity.

[Caller]

Well, we, we did talk to a realtor and she. When we bought the house in 2021, we got a 4% interest rate. And given the equity that we have, it's not likely that we're going to find any. Anything even remotely affordable with how interest rates are now.

[Jade Warshaw]

Understood. But there's also. You would have. Here's. I want to re. Reset where we're at. The problem is you need $30,000 and there's going to be limited options to get it. And I'm taking debt off the table since you called in. I have to take debt off the table. I don't want you to go into debt. I don't want to make this worse on you. So that means that we have to consider the opportunity options. And I'm not saying that that's the option you have to choose, but the options we have in front of us right now are what can we do that's going to find us 23 extra dollars per month? Is it something that you pick up in the night? Is it something that your husband does on the side? Is there overtime? That's one option. Another option is, okay, we could sell this house and then take the money, park it in a high yield, maybe rent for a while or move into something small, smaller while we save up to buy something again. This is a bad break. No matter how you slice it. That, I mean, I have to say that this is emotional. We're talking about your home, we're talking about your family. There's no side of this that is good or convenient or like, it all sucks. Right. So I'm just trying to give you options that won't put you later in a suckier position, because that's what will happen if we add to that, to this one.

[George Campbell]

When was the house built?

[Caller]

1895.

[George Campbell]

You're serious?

[Caller]

Yes. It's an old farmhouse.

[George Campbell]

Okay. I just did it on a quick search. Have you heard of the Ohio Lead Abatement Tax Credit Program?

[Caller]

Yeah. Our county didn't apply. That's. That's a large part of our frustration is that all of those. All the grants that are available for lead abatement are county by county. And our county just actually today consulting confirmed they didn't apply because they didn't think it was worth it. And now we're just out of luck.

[George Campbell]

And now it's too late.

[Jade Warshaw]

Wow.

[Caller]

Yeah. And they won't apply later either. We've. We've gone that route too. We've contacted lawyers, we've contacted realtors, we've contacted state health department, local health department, county commissioner's office.

[Jade Warshaw]

Wow.

[Caller]

Senator's office, state rep's office.

[George Campbell]

So you've done your homework on that end.

[Caller]

Some form of assistance? Yeah.

[George Campbell]

Is there a world around us want.

[Caller]

To help us, but they're not allowed to give us any grant dollars?

[George Campbell]

Yeah. Is there a world where you could work at night or your husband could take on a side job or do some extra mechanic work on the side to come up with this money?

[Caller]

I mean, that's pretty hit or miss. My husband's on call 247 for the county, so he has to. If he got a second job, it would have to be under the understanding that he has to leave. So it's kind of tough. And we live pretty rurally as well.

[George Campbell]

Yeah. And what do you guys have in checking and savings? Right now?

[Caller]

We have a little less than 300 or $3,000 in savings that was supposed to insulate our basement for the winter because it's pretty cold.

[George Campbell]

And is it safe to live in this house? Let's say you do stay for the year while you come up with the money. It's safe to. To live there?

[Caller]

Yes.

[Jade Warshaw]

Huh. Is there any way that you can file for some sort of extension or anything like that? I'm sure you've checked into that.

[Caller]

Yeah. The extension, that's every 90 days up to a year. So essentially our first deadline comes January 1st, but they'll give us the extensions up through September. After that, it's. We're really at the mercy of them. They can decide to make us leave whenever they want. And ultimately if we can't afford the work, they can bulldoze our house that we own.

[George Campbell]

That is so insane.

[Jade Warshaw]

I'm sorry. This is terrible.

[George Campbell]

This is like just rocking a hard place. A thousand percent. If I were you, I would look into what it would be to actually sell. I don't think. You know interest rates are now around five and a half percent and so if you have four to five and a half, I don't know that it'll be a huge jump and it might get you out of the situation. That's one option to look at if you can't increase the income because the problem is what I. Whatever the thing is a ten thousand dollar emergency, a thirty thousand. You guys are so tight right now and for the foreseeable future there's no end in sight. So this is just a hard way to live as you are finding out that home ownership is not cheap. And so I would try to find any alternative living situation and or move out. If you can't come up with this money in the next year, I don't know that begging and pleading with the state is going to get you very far at this point. So sorry you guys are dealing with this.

[Dave Ramsey]

It's one of the best times of the year, but it's also the time of year when people let their money get totally out of control. Everywhere you look it's just buy, buy, buy. So you start swiping the credit card and suddenly it's January and you got a mess on your hands. Don't let that happen. Tell your money where to go. Instead of wondering where it went with our budgeting app, EveryDollar. EveryDollar not only helps you stay on budget and in control of your spending this holiday season, it also helps you find extra margin in your budget. Thousands of dollars dollars of it. And every day will coach you to build better money habits and attack your goals faster than ever. So while most people will be starting in January with a taste of regret in their mouth, you'll already be winning. Start every dollar for free by downloading the.

[Caller]

Foreign.

[George Campbell]

Welcome back to the Ramsey Show. Big news from our friend Jade Warshaw. Her new book, what no one tells you about money is on pre order right now for 24.99. You get over 100 bucks in free bonus items including the enhanced audiobook read by Jade herself, early access to the ebook and instant access to an exclusive video. Your financial checkup with Jade. Plus she's doing a book club with Elijah. Q and A who doesn't love a book club. It's for three weeks. You can get access to all of that when you pre order today. Ramsey Solutions.com store click the link in the description if you're on YouTube or podcast. Very exciting. All right, Tim is in Houston. Up next. What's going on, Tim?

[Caller]

Hi, guys. Just kind of a real quick question. So we've got a destination wedding coming up in about six months and best price, about 2,500 bucks to go there. Hotel, rent a car, pet sitting, food and that sort of thing. However, right now it's not like we're totally broke, which we're not. But the problem is that I really, really don't think that this is a good thing for us to do at that time. And I know that the people that invited their lifelong friends love them to death. I know that they would be devastated.

[Jade Warshaw]

Tell us more about your financial situation and why you think it's not a good time to spend this money.

[Caller]

Okay.

It's.

It kind of goes back about, oh, I guess about six years ago. Been involved in aviation for a number of years, and I saw a new technology pop up. I took it to my company vice president and I said, hey, look, I'll get my commercial drone license. We'll do this, that and the other. And I ended up spending probably out of my own pocket because I wanted to also do this as a profession. About 100 grand. And I went into debt about 40 grand on unsecured loans. And then the shutdown hit us and I was out of work. I had to do engineering consulting on the side. Fortunately, God saw my dilemma and said, look, I'm going to put you here as an engineering manager. And my wife who came alongside, she was, she said, we're going to buckle down. I'm going to get hold of Ramsey's consulting group. And so we brought a consultant on. And about six months ago, we paid off all of our vehicles. We have two vehicles that's gone. All of our credit card debt has been wiped out.

[Jade Warshaw]

Great.

[Caller]

We owe about about a little under $90,000 on our home. It's probably worth 450.

[Jade Warshaw]

Okay. And have you saved up any money yet?

[Caller]

That's the big thing. So me personally, I've had some health things hit me. I had an accident. I had three surgeries, prostate cancer, blah, blah, blah.

[Jade Warshaw]

I'm sorry.

[Caller]

I was almost blind in one eye and couldn't see out of the other one, so I had to have cataract surgery. Wow.

[Jade Warshaw]

Have you managed to stay debt free through all of that.

[Caller]

Well, my wife really likes to travel so she's also booked some vacations and we would get ahead and then back.

[Jade Warshaw]

So where are you now?

[George Campbell]

How much debt do you currently have and what do you guys currently make?

[Caller]

So this is going to sound crazy. I bring home. Bring home home a little over 11,000amonth, which is pretty good chunk of change.

[Jade Warshaw]

Yeah. What? Tell us how much debt you have.

[Caller]

Well, right now we just paid off our last vacation. We've had some things hit.

[Jade Warshaw]

Bringing the total.

[George Campbell]

One word answer. How much debt do you have outside the mortgage?

[Caller]

90,000. $90,000 on our home.

[George Campbell]

That's it?

[Jade Warshaw]

That's it.

[George Campbell]

No consumer debt?

[Caller]

No consumer debt.

[Jade Warshaw]

Okay.

[George Campbell]

Okay.

[Jade Warshaw]

You are making it seem like, Tim.

[George Campbell]

That you guys bury in some.

[Jade Warshaw]

Yeah. Like you bought a theme park and you did all sorts of things.

[George Campbell]

Can we agree we are not going to go into any more consumer debt for any reason?

[Caller]

Well, let me just say that we just took on a thirteen thousand dollar repair to our house.

[Jade Warshaw]

But I thought you said the only deal. Thousand.

[George Campbell]

What do you mean took on?

[Caller]

So yes, we did take that on.

[Jade Warshaw]

As a heat loss.

[Caller]

It's going to be about 800 bucks a month out of our pocket.

[George Campbell]

Tim, you just told us you had no debt.

[Caller]

Well, I'm sitting here looking at my notes.

[Jade Warshaw]

So 13k, 13,000 in debt. No cars, no nothing.

[Caller]

That's it.

[Jade Warshaw]

Okay. And no money Saved.

[Caller]

Saved and very little saved. Now we do.

[Jade Warshaw]

How much, how much saved?

[Caller]

Retirements. We do have retirement out there that we do. We can't touch.

[Jade Warshaw]

Yeah. How much cash?

[Caller]

That's about 100,000.

[Jade Warshaw]

Okay.

[George Campbell]

We're trying to answer your question about this destination wedding. So you have 13,000 left in consumer debt. You have nothing in savings.

[Caller]

We've got about five grand.

[George Campbell]

Five grand in savings. So you could use four of that to attack the 13, bringing it down to. To nine then how quickly making 11k? Your. Your wife isn't bringing in income right now.

[Caller]

There's some.

There's some things going on. She's been doing consulting work and it's not a lot. I mean.

[George Campbell]

So let's pretend it's your 11k. How much do you guys need to cover all the bills per month right now?

[Caller]

I mean, I think. I think we're in pretty good shape. I told my life no more vacations.

[George Campbell]

Yeah, well, the thing is you guys aren't making a budget. This money is slipping through your fingers and you will go into debt willy nilly on a whim because life is just happening to you. And so this is the Part we need to get ahead of. Because truthfully, there is a world where you can knock out your. The rest of your 9k in debt if you do it our way. You can build up an emergency fund and you could probably go on this wedding. Go to the wedding. But I don't think you guys have it in you to follow a plan at the. At this point, unless you get on the same page and have a come to Jesus meeting tonight and go, we make $11,000. Why are we going to debt for anything?

[Caller]

I know that's what I said. It's crazy sounding and it is, but it's you guys.

[Jade Warshaw]

It's you guys choosing. And there's some behavior that has to start happening in order for you guys to write this ship, and that choice is yours. You know the plan, you know what the steps are. You've done it but before. There's something there that's a blocker for both of you going forward with this.

[Caller]

Yeah.

[George Campbell]

Could you scrape together 4,500 bucks a month, Tim? $4,500 a month out of your income to throw at the debt?

[Caller]

Oh, we'll get this, this, this repair. We'll get it knocked out pretty quick.

[George Campbell]

I'm asking you, can you do 4,500amonth?

[Caller]

I don't know why we couldn't.

[George Campbell]

You tell me. Because so far we haven't been able to take 4,500.

[Jade Warshaw]

It's because you haven't seen it on. It's on a budget.

[George Campbell]

If in two months you would knock out this debt, if you take 4,000 from your savings, throw it at the debt. You have nine left. 4,500amonth. You're done in two months, and then 4,500amonth after that. You'll have an emergency fund within three or four months, and then one more paycheck and you can fund this whole destination wedding. So I think the problem could be solved. I don't think you guys should go in the destination wedding. I think your life is too chaotic right now, and I think your friends would understand. Understand after 19 surgeries and a lot going on, you take them out to a really nice dinner. When they're back, say, hey, we want to treat you to the real fancy dinner. We're unable to make it for reasons, Health reasons, financial reasons, whatever.

[Jade Warshaw]

And where is the destination? Just curious.

[Caller]

It's in Colorado.

[Jade Warshaw]

Okay. Yeah, I think they'll be strong.

[Caller]

Well, you know, I know that there's.

There's.

There's a lot more to that. That whole scenario than I would My wife's daughters, the bridesmaid.

[Jade Warshaw]

Listen, here's the thing. You could go out and I don't know that you can with what you've been through, but maybe your wife could go out. You've got six months before this thing happens. You could doordash and say I'm going to doordash until I earn the $2,500 to take this trip. Then we'll go. It'll be debt free. It won't be part of our usual income. Sure, you could do that. If these are family friends, you know, I get it. I'm not going to try to make you miss out out on a, a huge moment if these are really special people in your lives. I, I, I'm not going to say that. But you have to go out and get the money and I don't know that you guys will do that. That's my, that's my only caveat here. If you do this, somebody needs to go out and earn it.

[George Campbell]

So the key is if you guys can get completely debt free with an emergency fund and save up for that destination wedding before it happens, then you have the green light to go on my part. But at this moment point the way you've been talking around things with lack of clarity, lack of a game plan for you and your wife, it just tells me this is going to take longer until we figure this out. So I hope you guys can get on it. I hope you can make it to the wedding. You have the income to do it.

[Jade Warshaw]

Hey friends. Our Black Friday sale is live. So if you're already feeling the pressure.

[George Campbell]

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[Jade Warshaw]

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[Caller]

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[George Campbell]

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[Jade Warshaw]

These deals won't last. Visit ramseysolutions.com store.

[George Campbell]

Our scripture of the day, Matthew 7:2. In the same way you judge others, you will be judged. And with the measure you use, it will be measured to you. Mark Twain said, good judgment comes from experience and a lot of that comes from bad judgment. That'll preach.

[Jade Warshaw]

That's great.

[George Campbell]

That'll preach. The bad judgment leads to the experience which hopefully if you learn from it, leads to good judgment. That's wisdom.

[Jade Warshaw]

You gotta learn from it.

[George Campbell]

All right, David is in Tampa. Up next. What's going on, David?

[Caller]

Hey, George. Hey, Jade. Thanks for everything. Y' all do.

[George Campbell]

Absolutely. What's your question?

[Caller]

So, just a little background. I've been a longtime listener, follow general principles, but I've been very Dave ish recently. So just trying to dive in and make some moves just after reevaluating some goals. So I'm currently in school. I work full time as well, so I've just been cash flowing school. I currently pay a thousand dollars a month towards the program and then at the end I could just pay off the balance in full. So I've just been stacking cash instead of working to pay off that. I also have have debt that I'll talk about in a second, but. But I have about 35,000 in savings and then the rest of the schooling program is about $30,000. Also I'm in $200,000 of student loan debt. So just trying to kick start my journey right here and wanted to see if y' all recommend I just pay off the rest of my school balance and then that frees up my thousand dollars a month to just contribute to paying my student loan or should I divvy it up, pay some of my school and pay. Pay some of the student load.

[George Campbell]

Wow. What are you going to school for?

[Caller]

Nurse practitioner.

[George Campbell]

Okay, so the 200k was your undergrad or 200k?

[Caller]

I'm also a chiropractor actually, so undergrad plus chiropractic school.

[George Campbell]

Wow.

[Jade Warshaw]

Okay.

[George Campbell]

Is that a combination? What are you going to be doing at the end of this?

[Caller]

Yeah, so I'm looking to just expand my scope of practice as a chiropractor. I currently can't prescribe medication or do I injections. And so I'm just looking to be able to provide more services for my patients. So that's my game plan.

[George Campbell]

And what are you making per month?

[Caller]

Per month, about 8,000.

[Jade Warshaw]

Okay.

[George Campbell]

So you can stack cash pretty fast. My goal would be to avoid going into any more debt and if that means pausing the student loan debt while I cash flow this the rest of school, I would do that.

[Jade Warshaw]

It sounds like you're already doing that though, right?

[Caller]

Yeah, I've got. I could pay off my schooling program today. So I want to see if y' all recommend that or should I?

[Jade Warshaw]

I think I would. You're already, you're already cash flowing like the current year and then you've got. Did you. I didn't hear if you said it was 30k for the rest or 20k.

[Caller]

30K for the rest of the program. About 35 and that.

[Jade Warshaw]

Yeah. So you keep 5,000 saved and then you could I mean essentially you could drop that down to 1,000 thousand on the 2, 200,000. And with your $8,000 a month, how much of that would you be putting on the, the 200,000 chiropractor deal?

[Caller]

About 4,000amonth.

[Jade Warshaw]

Listen, get into it. Yeah, I love that.

[George Campbell]

That's about 50 grand a year. So worst case, you're done in four years. Now hopefully your income is going to drastically go up. Right?

[Caller]

Right, that's the plan.

[George Campbell]

And at what is that going to take?

[Caller]

What do you mean?

[George Campbell]

I'm sorry, how, how do you get to 10, 12, 15 grand a month income from where you're at right now?

[Caller]

Well, I could open up my own practice. That's, that's definitely a long term goal. I just want to approach that correctly without going into.

[George Campbell]

Yeah, that sounds super expensive. Usually when people say that it's like, well, I took on a million dollars of debt to start my own practice.

[Jade Warshaw]

Right.

[George Campbell]

What's the other way on the radar at all?

[Caller]

I mean just continue working where I'm at. Maybe work more hours with additional responsibilities as a nurse practitioner role as well.

[George Campbell]

So are you going to get paid more once you're done with the NP program? I'm confused why that's helping you right now as you're working for someone else.

[Caller]

Well, the nurse practitioner program is more long term for when I'm on my own, but the current practice I work at is multi, so they, they have nurse practitioners that provide other services as well. So I can get a increase in salary?

[George Campbell]

That's what I was aiming at. Can we get an instant pay increase when you're done with this program?

[Caller]

Right, yeah.

[George Campbell]

The goal would be to knock it out even faster than four years. And if you stay focused, keep living like you are now, keep living on less than you make, you'll get there. But I like the plan of, you know, when is that 30k due that's left for school? Is that a perfect semester payment you.

[Caller]

Need to make that's not due until January 2027.

[George Campbell]

Okay, great. Because I'm like, if it's not due yet, I would wait until it is due.

[Caller]

Okay, so you recommend I just hold on to that for now?

[George Campbell]

You keep it in a high yield savings account and then when the payment comes due, you'll know you have the money as long as you won't go spend it elsewhere.

[Caller]

But you recommend I don't just pay it all off today?

[George Campbell]

Well, I mean is it when you say it's due, is it just the payment is due? It's Not a debt debt.

[Caller]

Currently, no, it's not dead, it's just a payment plan. And then at the end, at the end of the program, then you just pay off the rest in full. So I'm just paying a thousand a month.

[Jade Warshaw]

Is there any, can you, any incentive to pay it early?

[George Campbell]

If you said, hey, I'm going to pay this all cash up front, would they give you 5 or 10% off, for example?

[Jade Warshaw]

I'd ask.

[Caller]

I've not asked that, but I can definitely ask that.

[George Campbell]

Worth looking into. I'm looking for any way to make this cheaper and make this go faster. But you're on the right track, man. You're doing a lot of things right. I'm proud of you. Usually you get these calls from, you know, the chiropractors and the nps. I mean he's got a lot of debt, but he does, he's doing, he's making the right moves to get rid of this fast and I think he'll get there quickly. Joe is in la. Up next. What's going on? Joe?

[Caller]

Hi, thanks for taking my call. I got a question I have currently me and my wife, we work to drop. We work. We both have two incomes. I have about 100 grand in high yield savings account right now. And my question is, should I use that towards. I have a high mortgage, that's $4,500 a month, 7% interest rate. Should I use that to pay off, pay down my mortgage and maybe get a better interest rate or should I keep that in the high saving, high yield savings account? What do you guys recommend?

[Jade Warshaw]

Well, I have two questions before we decide. First off, I want to know how much you bring in every month with all those four incomes combined. You said you and your wife both have two jobs.

[Caller]

It's one and one. One job and one job.

[Jade Warshaw]

Oh, I thought you said you and your both wife both had two. Okay, well what's the income total?

[Caller]

Sounds, yeah, ten grand for both of us.

[Jade Warshaw]

Okay. That's why you're hurting. Yeah.

[George Campbell]

It's half your take home pay.

[Jade Warshaw]

Do you have any other debts?

[Caller]

Yeah, we do have 15 grand in debt, but that's, we're not getting hit with any interest or anything. That's kind of, of a.

[George Campbell]

What kind of debt is that?

[Caller]

Interest rate? It's a consumer debt, but it's on credit cards for 18 months. Financing credit cards.

[Jade Warshaw]

And what are the payments? That's, that's, it's still a payment.

[Caller]

Yeah, it's still very. Payments are about 500amonth.

[Jade Warshaw]

Yeah, man. This, the, the Mortgage and these credit cards are eating your lunch.

[George Campbell]

Yeah, you got a can of bear spray right now and there's a bear coming at you. I'd use the spray in the can and that's your 100k. So I would pay off your 15,000 today. That leaves you with 8,85. Then you have the mortgage. That's all that's left, right?

[Caller]

Yeah, the mortgage, which is 518. 518,000.

[George Campbell]

So paying it down isn't just going to lower the payment. You're going to have to refinance or recast it in order to get a different payment. Are you talking about refinancing?

[Caller]

I'm talking about refinancing because currently when I we got the property it was 7%, now 6.2. I'm hoping it could get like out of five later on, but. So I was kind of waiting to see if the interest rates go down. I've been watching them for the past couple years.

[George Campbell]

But yeah, do the break even on that because the refinance is going to cost you. And so you find out how quickly you'll actually recoup that, that money and how quickly you can get this manageable. But I like the plan of taking 15, paying off the debt and leave enough for your emergency fund. But anything above that, chunk it at the mortgage and refinance and it's going to lower your payment to make it more manageable. I love for you to get this payment closer to three grand.

[Jade Warshaw]

Yeah.

[George Campbell]

Because right now, you know, half of it, half of your take home pay is going just toward this mortgage. Is there a world where you guys increase your income?

[Caller]

Yeah, actually my wife's working on her P.E. to her P.E. professional engineering license.

[Jade Warshaw]

How long will that.

[Caller]

Hopefully the next couple months. Oh, he's studying. She's studying right now, so she's just got to take the state test.

[George Campbell]

Okay, awesome. Yeah.

[Caller]

And then me, I'm trying to go back to school so I can get my degree too. So we're trying, we're trying to increase our income, but as far as. Yeah, the rate you. So I should just wait until.

[George Campbell]

I would contact our friends at Churchill Mortgage. Yeah, contact our friends at Churchill. They can run the numbers with you and show you. Hey, does this make sense right now or not? But I think if you paid down the loan by another 50 grand and refinance, I think you could see the numbers start to make sense. So give them a call and see what they have to say. But I would knock out this debt today at least and use anything above the emergency fund to start tackling that mortgage. That puts this hour of the Ramsey.

[Dave Ramsey]

Show in the books.

[George Campbell]

Remember, there's ultimately only one way to financial peace, and that's to walk daily with the Prince of peace, Christ Jesus.