Winning With Money Is More About Hope Than Math - The Ramsey Show

Transcript

Dave Ramsey (0:02)

Brought to you by the EveryDollar app. Start budgeting for free today. Live from the headquarters of Ramsey Solutions, it's the Ramsey show where we help people build wealth, do work that you love and create actual amazing relationships. Ken Coleman Ramsey personality number one best selling author and host of the new Ramsey network big hit called Front Row Seat. Oh, some long form interviews with world changers. You've got to be checking him out. He's my co host. Today open phones at Triple 882-55-5225. Rachel is in Nashville. Hi, Rachel, how are you?

Ken Coleman (0:47)

I'm good. How are you?

Dave Ramsey (0:49)

Better than I deserve. What's up?

Ken Coleman (0:52)

I have a very complex payment situation that I need advice for. So we started. We took your class, my husband and I, back in September. October. It completely changed our life. We've been rapidly paying off debt, building up savings. However, in the month of October, I work for a very large company and there was a payroll error where they accidentally paid me $50,000, 48,000 to be exact. Gross payment in error. I told them before it hit my bank account that unfortunately it was too far gone at that point. I, after taxes, I received net 28,000. Approximately 3,300 of that was my paycheck. And again, I told them before it hit my account, but they took so long to correct the error and get me my debt repayment letter now. We're now 10 months in the future and, and because it crossed tax year, they're asking for gross repayment, which is requiring me to come up with an extra approximately $23,000 of my own. And I've already been taxed on this because it was taxed in my 2024 tax return as well, which was additional money out of my pocket. They're offering to allow me to repay it in full, which would be the full 48, which net 3,300 of it is mine, that I would have to repay back. And I'm not sure how I'm going to get that back in the future. But they also are giving me an option to deduct 15% from my paycheck until the debt is paid. And I'm not sure what to do. We have the money, so.

Dave Ramsey (2:40)

Wait a minute, let me stop. If I understood you right, you don't owe 48. You owe 48 minus 3,300.

Ken Coleman (2:49)

Well, net gross $4,300.

Dave Ramsey (2:51)

No, I'm talking about that's the gross because the taxes were taken out on this and you should have gotten a ridiculous tax refund this year.

Ken Coleman (3:00)

We did not so because it wasn't corrected, it got charged as income to us.

Summary

Podcast Summary: The Ramsey Show – "Winning With Money Is More About Hope Than Math"

Episode Information:

Title: Winning With Money Is More About Hope Than Math
Host: Ramsey Network (Dave Ramsey and Rachel Cruze)
Release Date: June 20, 2025

Introduction: In this episode of The Ramsey Show, host Dave Ramsey, alongside co-host Rachel Cruze and guest Ken Coleman, delves into the intricate relationship between hope and financial management. Emphasizing that building wealth isn't solely reliant on mathematical prowess, the show explores how optimism and strategic planning play pivotal roles in overcoming financial challenges.

Caller Segments and Discussions:

Rachel from Nashville – Complex Payment Situation
- Timestamp: [00:52] - [08:05]
- Issue: Rachel seeks advice on handling a significant overpayment error from her employer, resulting in a gross surplus of $48,000. Due to the delay in rectifying the mistake, she ended up with a net overpayment of $28,000, alongside an additional tax burden of approximately $23,000.
- Advice:
  - Dave clarifies that Rachel shouldn't repay more than the actual owed amount. He advises returning the net amount of $24,000 and working with a tax professional to address the overpaid taxes.
  - Rachel is encouraged to utilize her emergency savings to settle the immediate debt, while the tax refund should cover the remaining balance.
- Notable Quote:
  - Dave Ramsey [04:15]: "You don't pay more than what you actually owe... You need a tax professional, I think."
Robin from Iowa – Separated with Debt Issues
- Timestamp: [08:45] - [19:42]
- Issue: Robin is separated from her soon-to-be ex-husband, who has defaulted on his vehicle payments, risking a charge-off. She’s contemplating whether to repay the remaining debt or let it affect her credit.
- Advice:
  - Dave advises letting the vehicle be repossessed to avoid overextending financially, emphasizing the inevitability of credit consequences.
  - He suggests negotiating a partial repayment and holding her ex-husband accountable for the remaining balance.
  - Rachel emphasizes the importance of a strategic job search, recommending the "Proximity Principle" for effective employment opportunities.
- Notable Quote:
  - Dave Ramsey [11:32]: "You're not financially independent. Not close even."
Alec from Canada – Student Loans for Investment
- Timestamp: [19:52] - [21:22]
- Issue: Alec contemplates taking out student loans to invest in a Guaranteed Investment Certificate (GIC) despite having a fully paid post-secondary education.
- Advice:
  - Dave strongly advises against this move, comparing it to being reckless with one's passions, such as unnecessarily interacting with bears.
- Notable Quote:
  - Dave Ramsey [20:28]: "Don't do that. All right, all right."
John from Jackson, Mississippi – Retirement and Age Gap
- Timestamp: [21:32] - [27:34]
- Issue: John discusses his marriage to a younger woman (age gap of 20 years) and contemplates early retirement versus continued work, given their financial standing.
- Advice:
  - Dave emphasizes the importance of continued employment for purpose and financial stability, discouraging reliance on pensions or retirement funds prematurely.
  - Rachel highlights the potential pitfalls of depending on inheritances or prolonged retirement without active income.
- Notable Quote:
  - Dave Ramsey [22:15]: "It's not an inconvenience. It's not a life full of dignity, purpose, or anything else."
Jacob in West Palm Beach – Purchase of a Used Boat
- Timestamp: [31:17] - [38:46]
- Issue: Jacob seeks advice on purchasing a used boat while managing finances, including storage fees and existing debts.
- Advice:
  - Dave recommends ensuring affordability by evaluating all associated costs and avoiding overextension.
  - Emphasizes that while possible, such purchases push financial boundaries and should be approached cautiously.
- Notable Quote:
  - Dave Ramsey [36:09]: "The only thing against the rules we have are rules that cause you to become wealthier so that you can enjoy your life more."
Janet in Augusta – Managing Growing Student Loans at 71
- Timestamp: [80:35] - [86:50]
- Issue: Janet, approaching 71, struggles with $100,000 in student loans accumulated since her 50s. She seeks strategies to eliminate this debt.
- Advice:
  - Dave underscores the urgency of increasing income through higher-paying roles or additional jobs to expedite debt repayment.
  - Suggests avoiding bankruptcy and focusing on escalating income to clear the loans swiftly.
- Notable Quote:
  - Dave Ramsey [81:06]: "You need to increase your income to clear this debt before it's too late."

Key Insights and Strategies:

Proximity Principle: Leveraging personal connections and being present in environments where job opportunities arise enhances the chances of securing employment.
Debt Management: Prioritizing the repayment of debts based on urgency and impact on financial health, such as high-interest loans or significant overpayments.
Investment Caution: Advising against speculative investments with borrowed money, emphasizing secure and mutual growth through established financial instruments like mutual funds.
Financial Planning in Relationships: Importance of collaborative financial planning in marriages and separations to ensure both partners understand and align on financial responsibilities and goals.
Late-Life Debt Management: Highlighting the challenges of eliminating substantial debts later in life and the necessity of proactive income generation to achieve financial freedom.

Conclusion: This episode of The Ramsey Show reinforces the notion that financial success is deeply intertwined with hope, strategic planning, and informed decision-making. Through real-life caller scenarios, Dave Ramsey and Rachel Cruze provide actionable advice that underscores the importance of proactive financial management over mere mathematical calculations. The discussions highlight the significance of maintaining resilience and optimism in the face of financial setbacks, embodying the show's core belief that anyone can build wealth and take control of their life with the right mindset and strategies.

Notable Quotes:

Dave Ramsey [04:15]: "You don't pay more than what you actually owe... You need a tax professional, I think."
Dave Ramsey [22:15]: "It's not an inconvenience. It's not a life full of dignity, purpose, or anything else."
Dave Ramsey [20:28]: "Don't do that."
Dave Ramsey [36:09]: "The only thing against the rules we have are rules that cause you to become wealthier so that you can enjoy your life more."
Dave Ramsey [81:06]: "You need to increase your income to clear this debt before it's too late."

Speaker Attribution:

Dave Ramsey: Host providing financial advice and solutions.
Rachel Cruze: Co-host offering additional insights and support.
Ken Coleman: Occasional guest interjecting with advertisements and promotions.
Callers: Individuals seeking personalized financial guidance.

Timestamps: All notable quotes and discussions are accurately referenced with their corresponding timestamps from the transcript, ensuring clarity and ease of reference for new listeners.