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- [00:06]
Dave Ramsey
Brought to you by the EveryDollar app. Start budgeting for free today. 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 Dave Ramsey. Ken Coleman, number one best selling author, host of Front Row Seat, a big hit on the Ramsey Networks. He is Ramsey personality. That is my co host today. The phone number is 8888255 225. Sarah is in Atlanta. Hi Sarah, how are you?
- [00:42]
Ken Coleman
I'm good.
- [00:42]
Caller
How are you?
- [00:43]
Dave Ramsey
Better than I deserve. What's up?
- [00:47]
Caller
I'm doing good. So my question is that. So I am in a relationship. We are not married but we do just call each other's partners. We're both unhappy. I voiced it, he's voiced it. And it's mainly due to our communication style and our lack in our differences. Like for me I'm more of a person like I love a clean house. I love to be supported by acts of service and going out together. He's more of a homebody and he's really affectionate. But I didn't grow up to be like an affectionate person. And when we do talk about issues it does become escalated very quickly such as if we're not seeing eye to eye, he's quick to yell and point fingers and I'm also just withdraw like I'll go to a different room or I say just talk to me later when, when you're calm. So I just want to know like how can we better communicate without or how do I handle him or handle situations when he's yelling at me and how to do better with that. So you can see my perspective and see it more like a team issue instead of like he's against me or I am against him.
- [01:57]
Dave Ramsey
How long have you all been dating?
- [02:00]
Caller
So we've been together for five years and we have a child together.
- [02:05]
Ken Coleman
Has the relationship been the way you just described to us the entire time?
- [02:10]
Caller
Oh no, it was way worse in the beginning. So he would.
- [02:14]
Ken Coleman
Well, at least we're trending up. That's. I didn't expect that answer. What do you think has caused it to get better?
- [02:23]
Caller
I think it's caused. What caused it to get better is maybe I've. I'm one of those people. Like I learned to protect myself like my emotional state. So sometimes I just withdraw and I think of something else because in the beginning he was very verbally abusive towards me. Like he'll Yell at me. He'll curse me out, like, for hours on end. Like for three hours or four hours. Even when I was pregnant, we had arguments for that long and to the point there, they would just escalate where he's like, in my face shouting and stuff.
- [02:52]
Ken Coleman
And is that still happening?
- [02:54]
Caller
Oh, no, it's not happening anymore. Like, we talked. I talked about it. He was, like, asking me, like, why am I less affectionate and so on. I'm like, well, I can't be affectionate to someone who's, like, trying to purposely intimidate me. And he has said before that he does purposely try to make me cry because he says sometimes he feels like I don't have emotions.
- [03:13]
Ken Coleman
No, I hear you. Let me ask another question. Is it getting better? Not because he all of a sudden got control of his anger, but because you've just detached so much and you've cowered or you have. I'm gonna use the word detach for lack of a better word, to where he's no longer irritated. So you're almost a shell of yourself. Is that why it's better?
- [03:34]
Caller
I feel like it's better. I feel like it's a little bit of both. I feel like me detaching and taking my emotions away from the situation has made me handle the situations better. Such as telling him, like, I'm not gonna talk to him when he's yelling at me or just walking away. That has worked out for me. Cause he seems, like, got the message.
- [03:53]
Dave Ramsey
I guess he. The bottom line is you all suck at interpersonal relationships.
- [03:58]
Caller
Yeah.
- [03:59]
Dave Ramsey
Both of you. Okay? And you, because you won't set a boundary, you should never let anyone treat you the way you've been treated under any circumstances, period. And so if you were my daughter, I would have removed you from that house and left him in duct tape. Oh, you ain't yelling at my kid. This is ridiculous. Okay? It's ridiculous. No one should be treated the way you've been treated. And you should never allow someone to treat you the way you've been treated. And so that should have stopped the very first time it happened, not five years ago. So the only shot you guys have got, if you have one, is to sit down with a good coach, a good counselor, or. Not that. I'm just an old guy that's been married 43 years. And I don't yell at my wife, not if I want to live. And so she's a hillbilly woman. Frying pan throwing from East Tennessee is an Olympic event. So, you know, we don't do that stuff. So, you know, we get angry, we have arguments, but we don't treat each other that way. And so you guys need to sit down with a good marriage counselor, go see a good pastor at a local church and begin to get some guidance through. You've got in depth relational training that you need to do. You've got some of the verbiage around it. So you've been reading or doing something, so you've picked up a few things along the way. But I don't think on a call, one phone call on a podcast that two old dudes can tell you how to fix all this.
- [05:42]
Ken Coleman
Hey, whoa, easy, easy with the old. I don't know that I'm going to accept that label.
- [05:47]
Dave Ramsey
Hey, one compared to her. Fair.
- [05:49]
Ken Coleman
One final thing, I would say an encouragement very much because you're not married, I think I would throw a really strong ultimatum. The line is drawn in the sand today. As soon as this call is over and that's what you're going to say to him. Either you go and sit in therapy with me and we sit there until a professional says that we have the tools to actually be healthy. Then I'm no longer going to be in a relationship with you. That would be the one piece of advice. I would drop that today. Draw the line, it stops. And one way this goes forward, healing through therapy.
- [06:24]
Dave Ramsey
That's it. That's it. Sit down with a good marriage counselor and a good pastor can recommend that or have it on staff. They can help you with this and get somebody in your life, kiddo, that can guide you to. Because neither one of you had people around you up to this point that would teach you that stuff. Because this is a really dysfunctional situation. It's not fair to either one of you. It's not fair to him to keep acting like that and think he can get away with it in society. It's not fair to you, obviously, for all the reasons. And guys, you know, Sharon and I, after we've been married 10 years, we've been married 43, we spent about three years in the marriage counselor's office. That was about three years after we went broke. When we went broke, we couldn't afford, we just instead were just angry all the time. But finally we got a little bit of money and we're like, okay, we got to work on this. And the marriage counselor, for me, I was telling Deloney this the other day. It was not, you know, people like, I don't want to. I don't need therapy. I don't need counseling. Well, I didn't really. What I needed was a tutor. What I needed was a relationship tutor, someone to teach me how to talk to my wife, how to hear my wife, how to hear my own heart. You know, it's a relationship tutor.
- [07:38]
Ken Coleman
I like the tutor. You know what else, if you want.
- [07:39]
Dave Ramsey
To call it, it's a mirror. I was like, I was going to school. Yeah. I felt like I was going to class. Yeah. That's what I was doing. And I did. I learned a lot during those three years. Some of it I spout back at you people, but when you call in here. But you know, but we weren't starting from where you're starting, honey. Y' all got a lot of work to do. And if you do not do it, this is going to continue to deteriorate and it's not going to end well. So you've got. It doesn't get better unless it gets better. It's that simple. And this, you know, getting it to where it's tolerable is not okay. It's not a way to live your life. Don't get the end of your life. And this has been the definition of your whole life. Why would you do that.
- [09:01]
Caller
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- [10:24]
Dave Ramsey
Well, there's a lot of chaos and a lot of noise out there about the economy, about your money right now and you can't win. You know that, right? It's impossible. Well, we don't know that. You have more control than you think this time. This Time of year. It's time for you to take back your money starting at our free everydollar livestream. That is tonight at 7pm it's hosted by me and Jade and we're gonna give you the clarity you need to finally get ahead with money. And we're giving away $20,000 tonight. 10 $2,000 gifts. No purchase necessary. All you have to do is to enter. All you have to do to enter the giveaway is to sign up for the livestream. And it's tonight@ramseysolutions.com livestream we would love to have you. There's several hundred thousand of you have already registered and we've got between 2 and 3,000 folks going to be in the Ramsey events center with us as we're doing it live. Bunch of them already sitting outside here watching the show today. So there we go. It's going to be a lot of fun you guys. Look forward to having you. All right. Hannah is with us in Tamp, Florida. Hi Hannah, how are you?
- [11:36]
Caller
Hi, I'm good. How are you?
- [11:38]
Dave Ramsey
Better than I deserve. What's up?
- [11:41]
Caller
So my husband and I were in our 30s. We have a 19 month old and no debt. We take home about 68, 50 per month. Our mortgage with taxes, insurance and HOA is about 2,800 right now because we have an underpayment of taxes last year and next year it'll hopefully be 2400. So we're just wondering if we should sell our home and downgrade and rent an apartment instead or continue to be in our home. We don't really have much of an emergency savings about $4,000. And we want to work to eventually be, to be a stay at home mom at some point.
- [12:21]
Dave Ramsey
Okay, well the deal is this, okay. You can survive your house payment being 40% of your take home pay for a period of time. You just can't prosper. There's no room in your budget because your house poor. And so the answer is if you can't fix that in a reasonably close period of time or if you do fix it and then you turn around and quit and it starts over again, then that means we have a house that you can't afford if you stay home, Right?
- [12:54]
Caller
Yeah.
- [12:55]
Dave Ramsey
And if your husband never gets a raise and the taxes keep going up or you'd never get a raise in the household income, let's say the payment goes up continually and your income doesn't. Well, obviously that's not sustainable, right?
- [13:10]
Caller
Yeah.
- [13:10]
Dave Ramsey
And so. But if you're in a situation where, hey, my Husband's finishing up an apprenticeship. He's going to be making double or whatever, you know, and it's five months from now or a year from now. Yeah, you can hang on for a period of time. Right. But as you have already discovered, that's why you're asking the question. There's no wiggle room in your life, no margin to be able to win with.
- [13:34]
Caller
No. Yeah, exactly.
- [13:36]
Dave Ramsey
So are you going to be able to fix this in a reasonable period of time?
- [13:41]
Caller
No, he's still working on getting his bachelor's. It was just going to probably take a couple more years and the plan was for me to just continue working until hopefully he gets a higher paying position and then I can quit my job. But it's gonna take a couple more years before he.
- [13:56]
Ken Coleman
What does he do now?
- [13:58]
Caller
He works for a hospital just in like their billing department, making what I think like $30 an hour. He makes about 30, I think 35 take home per month and I make about 31 take home.
- [14:13]
Ken Coleman
What would the bachelor's degree, what would it get him? What degree? For what reason?
- [14:19]
Caller
Either accounting or finance. To either go and be like an accountant somewhere or maybe a financial analyst is what we're thinking of pursuing for him.
- [14:28]
Dave Ramsey
Yeah.
- [14:29]
Ken Coleman
Could he. Does he have margin to where he could pick up some projects, some other clients, doing bookkeeping? The very thing he wants to get a degree for, but could do some, some and I'm going to call it basic fundamental bookkeeping. Could he do that time wise?
- [14:45]
Caller
I mean with school it'd be really hard for him to have that.
- [14:48]
Ken Coleman
No, I'm going to say, all right, so what if we drop school? Would he have time?
- [14:53]
Caller
Yeah, yeah. If he drops school, then he can learn to do that and then he'd be able to have time for it for sure.
- [14:59]
Ken Coleman
Here's the challenge. If I were sitting with you guys in your kitchen, I would be looking at alternate paths to do the kind of work he wants to do that don't require the bachelor's degree. Now it might require it, but you know, if it's the type of work and you know he can get some certifications, I would be looking at that and I would be okay pausing school for a season. If he has to have the degree to do the accounting work he wants to do, then I get it.
- [15:24]
Dave Ramsey
If he's going to get a master's and get a cpa, then he's obviously going to.
- [15:27]
Ken Coleman
He has to do it.
- [15:29]
Dave Ramsey
But if you're not going to go that route, if you just want to learn accounting yeah, that's way different. But here's the thing. You can't just wave a wand and say, I get to do all of these things, okay, not make enough money and have too much house and quit my job and wait on him to wander through this bachelor's for no apparent reason. Okay? We need to really get nailed down here, exactly where we're going when we're getting there. And then that'll tell you, is this house a blocker or is this something we just need to hang onto for a minute and then it's gonna be okay? Because if you told me he was getting ready to graduate and you know, even in 24 months and his income was gonna double and he's gonna be making $60,000, $70,000, and you know, income is going to go up and you could figure out something you could do from home, even with a baby. So our income overall goes up substantially, then the house is going to be fine. But you don't want to trade a house you can't afford for your desire to be at home with a kid, too. I'd rather be in a cheap house than be home with a kid, if that's your desire. So you guys got to make these conscious decisions. But the old thing, you can't have your cake and eat it too. You can't do both. Casey's with us in Atlanta. Hi, Casey, how are you?
- [16:46]
Caller
I'm doing well. In yourself.
- [16:47]
Dave Ramsey
Better than I deserve. What's up?
- [16:50]
Caller
So I just received a job offer. Thank you. I'd be switching from a work from home position that I currently have to a home health position where I drive around the metro area and provide services to patients in their home. I would be receiving a significant pay increase. Last year, I ended the year from my full time job with about 64,000. And my offer letter for my base pay for my new job would be about 120,000.
- [17:19]
Dave Ramsey
Wow.
- [17:21]
Caller
Wow.
- [17:21]
Dave Ramsey
That is huge.
- [17:22]
Ken Coleman
Love it.
- [17:23]
Dave Ramsey
Casey, Way to go.
- [17:25]
Caller
Thank you. Thank you. I guess the question lies. I Drive a 2005 Toyota Corolla, had the same car since college. It has over 200,000 miles on it. And the question lies in would you still recommend only $1,000 in emergency savings? And then pouring my extra into my student loan debt. Because my major concern is that with this home health job, my car is my livelihood. If I'm not able to see patients, I'm not able to have money. And because I have an older car, I just kind of am hesitant about not having a backup plan immediately or having even worse Having to go into debt to get another car.
- [18:05]
Dave Ramsey
Yeah. You're making what, you're making $10,000 a month.
- [18:09]
Caller
There.
- [18:11]
Dave Ramsey
Okay? So if the car breaks, rent a car for a month, save up five grand and go buy a car. Okay, but the car ain't gonna break.
- [18:26]
Caller
I hope you're right, Dave.
- [18:28]
Dave Ramsey
It does sometimes. But if it does, I mean, if it's a thousand dollar car, it's a throwaway car, Right? We get another throwaway car and we do it again, and you upgrade to a $5,000 car, but you just put everything on hold. Rent a car for a month and then go and rent the cheapest little thing you can rent for a month and then go do that. You're not married, right? You're single. The way you're using your words, I.
- [18:50]
Caller
Think that, yes, I'm dating, but I am not married.
- [18:54]
Dave Ramsey
Okay. All right. Because there's. So there's no backup plan. I mean, there's no other car in the driveway type thing. Okay. Correct. So that's what I was double checking. But, yeah, that's what I would do. And here's the thing. I. I'll be honest. I. I am stereotyping your car. Okay. If you told me it was a Dodge Neon, I might change my answer.
- [19:19]
Ken Coleman
I was thinking the same thing.
- [19:20]
Dave Ramsey
Because your car, your car is the ultimate cool hooptie.
- [19:25]
Caller
Yeah.
- [19:25]
Dave Ramsey
These cars have so much life in them. Yeah. You might get another 200,000 out of that stupid thing. I don't want you to. I want you to get a better car than that. But. But you know how much student loan debt have?
- [19:37]
Caller
73,000.
- [19:39]
Dave Ramsey
Ah, man. Yeah. You're gonna be done with that in about 18 months and move it up in car. I like it. Casey, Congratulations. Well done. That's what I would do.
- [19:48]
Ken Coleman
You know, she's got to drive around Atlanta. I just want to point out, having lived there for 11 years, you know, if you go to hell and you live in the south, you have to go through Atlanta.
- [19:55]
Dave Ramsey
Yeah, yeah.
- [19:56]
Ken Coleman
It's just the worst driving around.
- [19:58]
Dave Ramsey
So we'll pray for her. Absolutely. Owning a business can be a heavy load. You want to serve your customers well, make a healthy profit and grow. And your team, family, and customers are all counting on you. And now everybody's talking about AI like it's magic and you're wondering how to keep up. You're carrying a lot, but you don't have to do it all alone. That's where Netsuite comes in. Over 43,000 businesses, including Ramsey Solutions, use NetSuite to lighten the load by bringing all their numbers into one system. Accounting, inventory, CRM, payroll, the works. And now NetSuite's AI takes it further. Automating busy work, flagging inventory issues, spotting cash flow problems in real time, and catching risks before they hit. So you're not just closing the books faster, you're making decisions confidently. And when your numbers are right, that takes a lot of pressure off your shoulders. And, yeah, switching systems is a big move, but NetSuite's suite success process gets you up and running fast. Go to netsuite.comramsey for a free product tour and to schedule time with a NetSuite rep. That's NetSuite.com Ramsey. Wayne is in Indiana. Hey, Wayne, how are you?
- [21:52]
Caller
Hey, Dave. I'm doing great. Thanks for taking my call.
- [21:54]
Dave Ramsey
Sure. What's up?
- [21:56]
Caller
Well, first off, I should just say that I am signed up for the livestream tonight.
- [22:00]
Dave Ramsey
Awesome. Thank you.
- [22:01]
Caller
I'm really looking forward to that.
- [22:02]
Dave Ramsey
Thank you.
- [22:04]
Caller
I know you have a background in real estate and you've run your own business for literally decades, so I'm hoping you might have some useful advice for me.
- [22:12]
Dave Ramsey
I'll try.
- [22:13]
Caller
My wife and I have been married for a few years, and frankly, I refuse to merge our finances because I find her financial habits to be pretty chaotic, and it's largely a function of her work. She is a real estate agent and has been doing that for over 10 years. We tried to speak about this a few times, but it generally ends in tears and not a whole lot changes. So I'm just looking for any helpful advice you might have on how to untangle the business from the personal life and how to make meaningful changes in that regard.
- [22:55]
Dave Ramsey
Okay, now you. You understand that when you sell real estate, your income, by definition, is straight commission and is chaotic.
- [23:05]
Caller
Yes, I understand that.
- [23:06]
Dave Ramsey
That's not what you're talking about.
- [23:08]
Ken Coleman
No.
- [23:08]
Dave Ramsey
Okay.
- [23:09]
Caller
No, I'm not. I'm not talking about, like, the fluctuations.
- [23:11]
Dave Ramsey
Okay. All right. Just making sure.
- [23:13]
Caller
There are certainly fluctuations. No, I just mean, like, so basically.
- [23:18]
Dave Ramsey
A real estate agent is what we call 1099 or an independent subcontractor. So they run their own business. Each real estate agent owns, runs, and owns their own business and has to pay taxes as a sole proprietorship, or some of them actually build an LLC for a crew, for a team. Okay. And so what she should do, and anytime you open a business, even if it's a solopreneur, a single person is you open a separate checking account for the business. It can even be just a. It can Be a sole proprietorship. It doesn't have to be incorporated. You don't even have to get a tax number. You can use your Social Security number. So it would be Wayne's wife, dba, doing business as Wayne's wife's real estate. Okay. Whatever the name is. Right. And it's just open in her social, and you can put your name on the account as well. But they have a separate account. Then 100% of the business expenses only come out of that account. So when she gets ready to pay her MLS dues, her real estate dues, when she gets ready to buy signs or ads or, you know, pay for a drone to get ready to stage a house, whatever it is that she's doing to sell the house, those are business expenses. Groceries do not come out of that. Electricity for your home does not come out of that. It's only business expenses. And business expenses never come out of the personal account. They need to be separated. This is good business, regardless of your frustration.
- [24:59]
Caller
Yeah.
- [25:00]
Dave Ramsey
Okay. Because it's very difficult for her to do her taxes if you have to go and unravel your personal checkbook and pull out your business expenses one at a time and at the end of the year. Yeah.
- [25:13]
Caller
And that's. That's what she's been doing.
- [25:14]
Dave Ramsey
I know. That's what most of them do. And it sucks. Okay. Yeah. And it's horrible. So. You know, one of the things, when we're coaching Ramsey trusted real estate agents, we teach them to run the back office, so to speak, the business aspect of their business. And part of that is basic accounting. So if you only take business expenses out of that account, and the only thing you put into that account are real estate commissions, by definition, what's left in that account is called profit.
- [25:44]
Caller
Sure.
- [25:45]
Dave Ramsey
And out of that profit, you can leave some to cover some of the expenses next month. And you can bring some home. When you bring some home is when I would hold back a fourth of it for taxes. Because you've got your income taxes and you got 15.3. Both sides of FICA.
- [26:04]
Caller
Yeah.
- [26:04]
Dave Ramsey
Okay. And so you set aside 25%, you're going to be really close. Unless she's making a half million a year, and then it's not enough. But if you set aside 25% of your money, you pull out that's profits into another account, then she can file her quarterly estimates, which she's probably also not doing.
- [26:20]
Caller
Yeah.
- [26:20]
Not.
- [26:21]
Dave Ramsey
And getting penalized every stinking year for not filing the quarterly estimates. It's costing you all a lot of Money. This disorganization. Okay. It's costing her a lot of money just because we're not doing. And this is sixth grade math. It's just a matter of the discipline of separation is all it is. So we run the business over there like we're running it for someone else emotionally. And then when it has some profit, we take some out, bring it home, hold the taxes out, and then we've got some money to add to the household budget and the household goals. But until that happens, until there's a profit in that account, she's not made money in the real estate business. How many houses she sell in a year?
- [27:04]
Caller
I'd say 15.
- [27:07]
Dave Ramsey
She's making a little money. She's not making much.
- [27:10]
Caller
Yeah.
- [27:12]
Dave Ramsey
Her expenses are eating up a bunch of that. But we don't even know that because we're not doing a good job of keeping the accounting.
- [27:21]
Caller
Yeah, yeah.
- [27:23]
Dave Ramsey
So this is an accounting and a business acumen, a business function. Now, I don't know how to emotionally get her to do that, but that's the proper way a residential real estate agent should handle their business or, for that matter, any solo preneur out there.
- [27:38]
Ken Coleman
Yeah. My advice is I have to bet that, Wayne, you're the nerd of the family.
- [27:43]
Dave Ramsey
I think that's safe.
- [27:44]
Ken Coleman
And I think that if she's open. If she's open to you helping you do exactly what Dave just told you to do, and you lead on this. And it sounds like the tears, the stuff that keeps coming up from the tears is just the frustration between the two of you on this. So I think Dave just gave you a very simple but actually effective blueprint, and this is where you come in. Not like the. The guy on the white horse is the hero. Makes her feel bad. But you know what, babe? I've not supported you the way I need to support you, and I can do this. I'm wired for this. I called Dave. I got a plan. And if she doesn't have any problem with this, I think this is easily solved. You got to lead.
- [28:21]
Dave Ramsey
She may not be confident of her competence to do this, and that would be true of a lot of people. Yeah. And there are some nerds that sell residential real estate, but most of them aren't. Most of them. I mean, this is an industry that has glamour shots on their business card. Okay, so this is usually not a nerd. Right.
- [28:49]
Ken Coleman
And so at times, I've seen boas.
- [28:52]
Dave Ramsey
Yes, I have seen that, too. We're not talking the constrictor type. Yeah, but the. Yeah, The. Yeah. So it may be that she's not got the detailed wiring that you have, Wayne, or even that I have that'll force you to do that in order to get the business run properly. But, you know, if she's wrecking the car and you can help her drive it and she's willing to let you, then that's a cool idea from Ken, to come alongside and support rather than stand back and throw grenades and go, wow, you really are stupid about this.
- [29:27]
Ken Coleman
Well, it's spoken from experience. And I'm really glad, Dave, that you just made this point to our broader audience. Here's what you need to understand, especially if you're in a married situation, you're trying to figure out finances. I'm not wired like Dave. And so when I heard Dave, what you just laid out, the free spirit. Creatives like me do thrive with a very simple, repeatable plan. That was a simple, repeatable plan. Every time you sell a house, you get a commission. This is what you do and you laid it out. But for those of you that are the nerds and you're married to people like me, I know we frustrate the absolute snot out of you and you're right to be frustrated, but it's very key to point out we are not doing it in this case. I don't believe Wayne's wife is doing this to drive him nuts. She's not wired that way. Dave used the word wired. It's really important to understand that that spouse will. Will play ball with you if you give them the structure that they need, which comes with its own accountability. You don't have to be accountability if you give them structure and a repeatable process. And that's the magic of what Dave did decades ago with these baby steps. But in that advice he just gave, that will bring a lot of relational harmony around money. If you understand that your spouse just doesn't even think the way you think. Therefore all that process stuff that Dave just laid out, it never enters into their mind. That's how to do it. And I just, I think there needs to be grace there because I know what.
- [30:48]
Dave Ramsey
That's what enters into my mind when I'm doing that. Because I'm a great salesman.
- [30:51]
Ken Coleman
Yeah.
- [30:52]
Dave Ramsey
I always think I could just out earn my stupidity.
- [30:55]
Ken Coleman
Oh, yeah, I'm. Same way.
- [30:57]
Dave Ramsey
I'll just. I'll just go make. I don't need to. I don't need to add all this up. I'll just make some more. Just. Then I don't have to deal with it. You know, that's how I used to try and it doesn't work. That's really a very immature thing. But a lot of sales people think that way. The calendar might have flipped, but the way to win with money hasn't changed. Living on a budget, staying out of debt and building wealth intentionally. Now here's the deal. Most banks make their money when you don't do that. They're fine if you stay broke and frustrated. And that's why I recommend Fairwinds Credit union. They actually want you to win with money. Their smart bundle gives you a no fee checking account, a high yield savings account, and the new Ramsey Be weird debit card that says debt is normal beweird right on the front. It's not just a card, it's a statement. Because every time you use it it says you control your money. Your money doesn't control you. So this year, stick to your plan. Don't chase gimmicks or points and partner with a credit union that help you make progress in the baby steps. Visit Fairwinds.org Ramsey to take control of your money and stay weird.
- [32:39]
Ken Coleman
Fairwinds is federally insured by the NCUA.
- [32:51]
Dave Ramsey
Jackson's in New York. Hi Jackson, how are you?
- [32:55]
Caller
Good.
- [32:55]
Dave Ramsey
How you doing? Better than I deserve. What's going on up.
- [33:00]
Caller
So I recently, maybe not recently, a few months ago, came into a large inheritance from my parents.
- [33:06]
Dave Ramsey
Wow.
- [33:07]
Caller
And I'm just wondering what to do with it.
- [33:09]
Dave Ramsey
Wow. Sorry. You lost them. How much did you get?
- [33:14]
Caller
Around 450,000.
- [33:16]
Dave Ramsey
Cool, cool. So how long have you been listening to this? Listening to us?
- [33:22]
Caller
Probably maybe about a little less than a year.
- [33:24]
Dave Ramsey
Okay.
- [33:25]
Caller
My brother's a big fan of you.
- [33:27]
Dave Ramsey
Okay, well, thank you. I was asking because I didn't know how far to go back to give you the answer, but so we would walk you through the framework called the baby steps with that money because we believe and we know that if you follow through and handle money properly after that, enduring that, that it will be the. The way that this money gives you the most lift. Okay. And so that means do you have any debt except your home?
- [33:57]
Caller
So we actually just sold our home. That's where most of the money was tied up in. So right now I'm renting and I have no debt. I just graduated college.
- [34:08]
Dave Ramsey
Okay, cool, cool. And how old are you?
- [34:11]
Caller
I'm 23.
- [34:13]
Dave Ramsey
Wow. Okay. So we sold our home. That was your parents home you mean?
- [34:19]
Caller
Yeah, it was. My parents were separated, but it was my mother's home and it had a lot of my father's money tied up in it. And so me and my two brothers sold that house six months ago.
- [34:31]
Dave Ramsey
And your part is 450,000.
- [34:34]
Caller
Yes.
- [34:34]
Dave Ramsey
Okay. All right. And you're 23. Are you married?
- [34:39]
Caller
I'm not.
- [34:39]
Dave Ramsey
Okay. And what do you make a year?
- [34:43]
Caller
Right now I make 75,000 a year.
- [34:45]
Dave Ramsey
Good for you.
- [34:46]
Caller
Okay, thank you.
- [34:48]
Dave Ramsey
What is your plan over the next few years? Where do you plan to be?
- [34:54]
Caller
So right now I'm just renting with my brother in our hometown. And I plan. So I'm working in the city and I live in Long island, and I'm planning to move to the city sometime in the future, maybe about a year. So I just have all of that money that. That I got from the house that I didn't have previously just sitting in a CD right now, which pays my rent every month.
- [35:21]
Dave Ramsey
Yeah. Okay. All right. Not a bad move for. For the first move anyway. That way you didn't go do something stupid with it. Right. And so.
- [35:30]
Caller
Yeah, I'm not trying to.
- [35:31]
Dave Ramsey
Yeah. What do you. What do you do for a living?
- [35:34]
Caller
I work in financial technology.
- [35:35]
Dave Ramsey
Okay, good, good. Well, you're very early in your career, so I predict your income will go up pretty dramatically in the next seven years. Would that be a fair prediction?
- [35:45]
Caller
I'd say so, yes.
- [35:47]
Dave Ramsey
And I also predict that the 450,000 could grow a lot in the next seven years. Like, if it was invested at market rates, it would double in about seven years and be about 900. 450 will not buy anything in the city. Would you agree with that?
- [36:02]
Caller
Yes.
- [36:03]
Dave Ramsey
Not paid for. I mean, you could put it as a down payment, but you couldn't pay for it. And you don't really make enough to pay a payment and put 450 down in the city. Hardly. So you're probably renting if you're living New York, Manhattan lifestyle. Right.
- [36:17]
Caller
So right now I'm on Long Island.
- [36:18]
Dave Ramsey
I know, but you said you're moving to the city.
- [36:21]
Caller
Yes, but I will be renting. Yes.
- [36:22]
Dave Ramsey
Yeah, that's what you told me. Yeah. So I'm projecting what to do. In other words, we're not going to use this to buy a house because we can't pay cash for it with your current plan.
- [36:30]
Caller
Absolutely.
- [36:31]
Dave Ramsey
Okay. So given that, I'm going to tell you to go to ramseysolutions.com, click on Smartvestor Pro, sit down with one of the people that we recommend, and start learning about investing. Okay. And put it in some good growth stock mutual funds, and continue to keep your dad gum hands off of it. That's been very wise on your part, very wise beyond your years wise. And so keep, Leave it alone. Leave it alone. Pretend like you don't have it and just use your income and live off your income, barely, which you barely can, living in the city. Okay. And just let this money grow because if you don't touch it, it will double every seven years.
- [37:14]
Caller
Sounds good to me.
- [37:16]
Dave Ramsey
That's about the averages. Okay, now so the s and P500, have you ever heard of that?
- [37:23]
Caller
Absolutely.
- [37:24]
Dave Ramsey
Okay. That's the, basically the bellwether, the mark of what the stock market has done. Closed the year for 2025 up 16%. It closed the year the year before, up 26%. It closed the year before, up 25%. It throughout its lifetime a little over 11, up close to 12%. That's the average. But in the last three years it's done 67% total. So while you had this sitting in a CD making 3%, it should have made eh, five times as much. Okay, So I don't want you doing that next year. I want it to be in a good investment instead of in a cd.
- [38:06]
Caller
Understood.
- [38:07]
Dave Ramsey
So go over there and learn about it with a good smartvestor pro. And don't put money in something because I said to or someone else said to, but because you start to understand it. And I've got a feeling after talking to you, you'll be able to understand it.
- [38:20]
Caller
Yeah, I think so, yeah.
- [38:22]
Ken Coleman
This is a mass, don't forget something. This is a massive head start for you. And so when Dave's preaching discipline, it's because we realize how much of a massive head start this is for a 23 year old who's very upwardly mobile in his profession. And you're just leave it alone.
- [38:39]
Dave Ramsey
You're so wise. I mean you didn't call me up and say I need to buy a lamb, you know, I mean, because I would have smacked you sideways. I mean, you know, for your own sake, you know, you're just, you're just a sharp 23 year old and you know, talking to these guys like this is why I've become such a huge fan and I've got them on our team here. Of these Gen Z's, there's so many of these Jacksons in the Gen Z.
- [39:02]
Ken Coleman
That's right. You know, I'm not saying he should do this, Dave. I'll throw this out, see what you think about this. But my head, when you were talking, I tried to put myself in his position at 23, no debt and now he's going to be in really good shape. I would say a small amount of money, I would consider a small. But enough to make an impact, give it to somebody.
- [39:22]
Dave Ramsey
Oh, yeah, yeah, sure.
- [39:24]
Ken Coleman
I think it's so really rewarding when we come into money, whether we earn it or it's a gift. And to think about how to bless somebody that you would not have been able to bless before, I'm going to tell you, it's a really great way to begin to appreciate the power, not just from compound interest that we teach, but as you teach and you've been making it so clear for so long. Live like no one else so that later you can live and give. And that is such a key thing. And in this case, I think he could bless somebody with some amount.
- [39:56]
Dave Ramsey
I think that'd be a brilliant idea. Kyle is in Atlanta. Hey, Kyle, how are you?
- [40:01]
Caller
Hi.
- [40:01]
Dave Ramsey
How are you? Better than I deserve. How can we help?
- [40:04]
Caller
Yes. So I'm actually post college. I graduated about seven months ago. And currently my situation is I have two credit cards. Cards. Now, I know that that isn't great. And however, I am looking at an opportunity to consolidate those to one credit card that is attached to my current bank with a much lower interest rate because I want to pay it off and be done with it. I don't want to deal with credit cards anymore.
- [40:28]
Dave Ramsey
What's the balance on the cards?
- [40:30]
Caller
One of them is 2300 and the other one is a little shy of 1200.
- [40:34]
Dave Ramsey
Okay, and what is your current interest rate?
- [40:39]
Caller
From what I was understanding yesterday, I think it was 20 something.
- [40:43]
Dave Ramsey
And what is the new interest rate?
- [40:45]
Caller
The new one's 6 to 8%.
- [40:47]
Dave Ramsey
Okay. All right. So you're going to save about 350, $375 a year, right? That's okay. That's okay. It's not bad. Yeah, but it doesn't fix a $3,500 problem. You know what fixes a $3,500 problem, Kyle? You.
- [41:02]
Caller
Right.
- [41:03]
Dave Ramsey
You're the secret sauce, not consolidation. The problem with consolidation is you think you did something. You moved 375dol dollars around. That's okay. If you hand it to me, I'll take it. I'll go buy dinner. But it doesn't fix your problem. What fixes your problem is you get pissed off about these cards. You cut them up and you swear off of them forever and say, samuel L. Jackson, what's in your wallet? You go get your own stinking life and you get these stinking things paid off. What do you Make a year.
- [41:32]
Caller
So not a ton. So post graduation, I make 17 a year at the poverty level.
- [41:38]
Dave Ramsey
What'd you get a degree in?
- [41:41]
Caller
So she got a degree in film and television, but that's not what I'm currently working in.
- [41:45]
Dave Ramsey
Okay. All right. I want you to get six jobs, Kyle. It's not a joke.
- [41:51]
Ken Coleman
In Atlanta, which is when it's one of the hottest areas for film and television. You could be making way more than that. Just as a grip, lighting, grip, sound, something or other. Just get on a set somewhere.
- [42:03]
Dave Ramsey
Just a grunt. Not even a grill. Just a grunt.
- [42:06]
Ken Coleman
Oh my gosh. That's incredible.
- [42:08]
Dave Ramsey
That's awful. Kyle. Kyle, you don't work much. No, you need to work much more. A lot more. Like all the time, Kyle. And that's going to solve this. You cannot hack your way out of credit card debt. You have to earn your way out of credit card debt. There is no hack. There is no easy button. So yeah, consolidate them if you want, dude, but don't act like you did something.
- [42:47]
Ken Coleman
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- [43:42]
Dave Ramsey
Welcome back to the Ramsey Show. In the Fair Winds Credit Union studio. Ken Coleman, number one best selling author, host of the Front Row Seat, one of our big hits on Ramsey Network. He's my co host today. Open phones at 888-825-5225. Heather's in Fort Myers. Hey, Heather. What's up?
- [44:01]
Caller
Hi. How are you? It's an honor to speak with you.
- [44:03]
Dave Ramsey
You too. How can I help?
- [44:05]
Caller
Yes. Okay. Dave. I am reading rebuilding my life after my husb walked away from our marriage.
- [44:12]
Dave Ramsey
Wow.
- [44:13]
Caller
Since then? Yeah.
- [44:15]
Dave Ramsey
Sorry.
- [44:17]
Caller
No, it's. It's okay. Since then I have furthered my education and I received my nursing degree.
- [44:26]
Dave Ramsey
Good for you.
- [44:27]
Caller
There's a lot more backs backstory, but we don't have enough time for that.
- [44:31]
Dave Ramsey
Good for you.
- [44:33]
Caller
Thank you. I'm 54 years old and I'm, I'm single and I work as a registered nurse. Yearly I am making 90k.
- [44:45]
Dave Ramsey
Good for you.
- [44:46]
Caller
I have just under 100k in my work. 403. I contribute 20% and my work contributes the 5%. And in my high yield savings account, I have 170k. I have zero debt, no student loans. However, I rent because I'm just not sure at this point in my, in my life, like, what my next step is going to be. Where.
- [45:15]
Dave Ramsey
Yeah. How long ago was the divorce?
- [45:16]
Caller
You know, it's been four years.
- [45:20]
Okay.
- [45:20]
Dave Ramsey
You're amazing. You've done a great job recovering. Congratulations.
- [45:24]
Caller
Yeah, well, it's definitely been a. Oh, it's unbelievable.
- [45:28]
Dave Ramsey
It's a tragedy. But. Yeah, but you pulled it off. Warrior grand. Well done.
- [45:33]
Caller
Thank you.
- [45:33]
Dave Ramsey
Well done.
- [45:34]
Caller
Thank you.
- [45:35]
Dave Ramsey
Cool. So what's your question?
- [45:36]
Caller
So, I mean, my question is with what you know of my finances right now and if I, because I really haven't been saving much money as, as much as I could be because I think I went through a period of time where I was spending.
- [45:58]
Dave Ramsey
You know.
- [45:58]
Caller
Spending my money because I knew I had the money and you know, medicating.
- [46:02]
Ken Coleman
It's called retail therapy.
- [46:05]
Dave Ramsey
Yeah, that's okay.
- [46:06]
Caller
Exactly. That's in the rear view mirror, people. And.
- [46:09]
Dave Ramsey
Yeah, yeah. Good.
- [46:10]
Caller
Yeah. So I'm really, this year I'm wanting to maximize as much as I can.
- [46:16]
Dave Ramsey
I love it.
- [46:17]
Caller
So I want to, you know, maybe own my own home or condo, but I just don't know at this point, you know, where am I going to be? Am I going to stay in Florida? Am I going back to Tennessee because I lived in East Tennessee. So what would you recommend? What more can I do to secure my future? And am I going to have enough money to retire if I, you know.
- [46:39]
Dave Ramsey
You'Re going to have plenty of money to retire. You're going to be fine. You're going to, you're going to retire a multimillionaire.
- [46:46]
Caller
Okay.
- [46:47]
Dave Ramsey
Okay. That's what the math. I didn't just make that up. The math says that. Okay, so let me, let me walk you through. There's two things that we need to. We need to maximize investing and we need to get a house and get it paid for.
- [46:59]
Caller
Yes. Okay, that's definitely what I want to do.
- [47:01]
Dave Ramsey
So if you're 11 years from today and you're sitting in a paid for house and you've been putting away 25 or $30,000 a year during that time, you're going to have millions of dollars.
- [47:11]
Caller
All right.
- [47:12]
Dave Ramsey
And the way you'll know that is you need to sit down with someone and help do the calculations and help figure out how to do the investing and what to do. The only question on the horizon is which city you're going to be in. And as soon as you make that decision, buy a house.
- [47:28]
Caller
Yes.
- [47:28]
Dave Ramsey
With that one. 7.
- [47:29]
Caller
Well, it's either going to be the Cape Florida or East Tennessee possibly. Yeah.
- [47:35]
Dave Ramsey
So I mean once you decide, and you don't have to decide today on this call, but once you decide, take the 170 and go buy a house.
- [47:43]
Caller
Okay.
- [47:44]
Dave Ramsey
And then, and then sit down with a Ramsey Smartvestor Pro. Go to ramseysolutions.com click on Smartvestor. Find someone in your area, sit down and talk to them. In order for us to send people to them, they don't work for us. They're independent people. They're in the investment business. I'm not in the investment business. I'm in the education business. But in order for that, they have to have the heart of a teacher or they don't get Ramsey's name on them. Okay. Meaning they're going to teach you how to do this investing. You're going to understand it and you're going to decide. But if you put this in good growth stock mutual funds and you average market returns, you're going to have several million dollars going into your 70s and a paid for house. If you stay diligent and stay on this.
- [48:29]
Caller
Yes.
- [48:30]
Dave Ramsey
If you go back to retail therapy and start blowing everything, then no, you can't act like you're in Congress. Right. Okay. So, but, but, but I don't think you're going to because I think you just went through a, you know, a tragedy. You went through a horrible time. You've got that in the rearview mirror. You've worked your way through the, all the parts of that and now the future's bright and we need shades.
- [48:53]
Ken Coleman
Yeah. And you're young.
- [48:54]
Dave Ramsey
Yeah.
- [48:55]
Ken Coleman
And I mean that. And I think here's what I would encourage you. This isn't a challenge. You don't need to be challenged. But I would encourage you to make the decision about where you want to live based on what kind of life you desire. Not a safe choice because I'm from East Tennessee and again, I'm not anti East Tennessee. I'm sitting next to, you know, you know, Mr. Tennessee here. I love Tennessee. I want to be here for the, for the, for the long haul. But I do think in someone in your Position, having come through what you've come through and financially, where do you.
- [49:29]
Dave Ramsey
Want to be when you're 65?
- [49:31]
Ken Coleman
That's. You got to choose your future because you actually are in a position to do so because of that great degree.
- [49:37]
Dave Ramsey
Yeah.
- [49:37]
Ken Coleman
And now you are highly sought after anywhere in the United States. So choose the place you want to be and then let the rest of the future take care of itself because financially you're going to be fine if you do what you've been doing.
- [49:51]
Dave Ramsey
Yeah. You keep making this kind of money and you start socking away 30,000 bucks a year, which you can do in either one of those locales. And you can even make more if you wanted to, if you wanted to work more, because there's all kinds of, er, opportunities and everything else for you to go get. You know, you can just work all the time if you want to. I'm not suggesting that. But if you want to pile up some money, you can do it in your world. That's the beautiful beauty of that degree. You can work all the freaking time.
- [50:12]
Ken Coleman
That's the truth. You get some bargains in Florida.
- [50:15]
Dave Ramsey
Right now.
- [50:16]
Ken Coleman
It's resetting. Real estate is resetting in some parts of Florida.
- [50:19]
Dave Ramsey
Really? Okay.
- [50:20]
Ken Coleman
Not complete, you know, not a crash, but we're seeing some prices that can be favorable. And again, you teach this, you know, if you get in. In a soft moment, I, I don't think Florida is going to be long term. A bad place to invest in a house.
- [50:32]
Dave Ramsey
Yeah, yeah, absolutely. Absolutely. Very cool. So, I mean, like, Ken, you remember during COVID we had these travel nurses coming in here. Oh. And they were. They had worked like a year on the road during COVID they were getting Covid pay and travel pay, and they're making like 400 and 500 grand. As a nurse.
- [50:49]
Ken Coleman
I was on with you one day when we took a call from a gal who had made about that kind.
- [50:53]
Dave Ramsey
Of money in one year.
- [50:55]
Ken Coleman
One year.
- [50:55]
Dave Ramsey
Yeah. It's not, it's not out there today. But I mean, they were getting Covid money. Like battle money, right? Yeah, like battle zone money. And they were getting travel money, both and. Because, you know, it was crazy. Crazy. And they were just loading up, man. There's two or three of them we talked to that had, you know, I had $200,000 in student loan debt, paid it all off this year and put 300 in the bank, you know, like what? Wow. So it's just a, it's a wonderful career field because it gives you lots of opportunities and choices and things. So and you know, when you go through something like a divorce after 30 year marriage, recovering from that, I can't even. Is not a bounce back. Know that's a claw out.
- [51:35]
Ken Coleman
Yeah.
- [51:35]
Dave Ramsey
I mean, that's a healing process to get to where you're as solid as she is. Talking to her. Yeah. And she's solid. Yeah. Very, very neat. Congratulations. I'm very proud of you.
- [51:58]
Caller
Sam.
- [52:26]
Dave Ramsey
You know, every year I hear the same excuses for why people don't get the life insurance they need to protect their families. So this year, let's clear the air and look at the facts. Having 10 to 12 times your income on a 15 or 20 year plan is in many cases just plain cheap. That amount of coverage lets your family keep the lights on and keep food on the table while they're grieving. Second, life insurance through your work is not enough, especially since these plans go away if you change jobs. You need to have your own policy so you're not without protection when your family really needs it. Third, stay at home parents need life insurance, especially those with young kids. People don't realize how quickly the costs add up without someone at home taking care of things. So no more excuses, folks. Folks, get the protection your family needs. Go to Zander.com or call 800-356-4282. They've been my choice for all my insurance for over 25 years and are the only people I trust. Jessica is in Dallas. Hi, Jessica, how are you?
- [53:52]
Caller
I'm doing well.
- [53:54]
Dave Ramsey
You're breaking up. Try one more time.
- [53:58]
Caller
Sorry. I'm doing well. How about yourself?
- [54:02]
Dave Ramsey
I'm doing good. Your phone's not. How can we help?
- [54:07]
Caller
Yeah, I was just wanting to just get some advice. On.
- [54:13]
What.
- [54:14]
What's realistic and what's not. It needs like an outside outsider opinion.
- [54:21]
Dave Ramsey
About what.
- [54:24]
Caller
I'm wondering what would be, what's a realistic time frame of having a business operating before you shut it down due to not having it not be profitable?
- [54:40]
Dave Ramsey
Okay, what kind of business?
- [54:43]
Caller
It's a lawn care business.
- [54:45]
Dave Ramsey
Should be profitable the first month. Why isn't it profitable?
- [54:50]
Caller
I don't know. Not a lot of jobs coming in, I guess.
- [54:56]
Dave Ramsey
Okay. All right, so we have a lawn care business, but we don't do much long. Care care.
- [55:04]
Caller
Right.
- [55:05]
Dave Ramsey
Okay. Why?
- [55:09]
Caller
Well, I. I mean, I live in an area where there. There are water restrictions. So really you're not allowed to water your lawns. So there's a lot of dead grass, a lot of people.
- [55:25]
Just so you don't think there's people.
- [55:28]
Dave Ramsey
In the area making a living in Lawn care business in Dallas, Texas, where there's water restrictions.
- [55:35]
Caller
Well, no, I see people there on the.
- [55:46]
Dave Ramsey
I lost all of that. Try again.
- [55:50]
Caller
There. I do see people. Other lawn care companies out there mowing lawns and working. I just don't know why it. It's not working for us.
- [56:02]
Ken Coleman
Who's us? I feel like we've been too hypothetical. Let's get real. Brass tacks.
- [56:06]
Dave Ramsey
This is your husband's business, Right?
- [56:09]
Caller
Right.
- [56:10]
Ken Coleman
How long has it. How long has he been in this dead zone of business? It's not doing well. How long has this been going on?
- [56:18]
Caller
He started the business when I was five months pregnant and now our babies about.
- [56:25]
Ken Coleman
Let me ask it again. How many calendar months has it been? A year to year. How many years has the business been struggling? Struggling. How many years? A number.
- [56:33]
Caller
Like the. The entire. The entire time. Like when you say struggle.
- [56:37]
Ken Coleman
God.
- [56:37]
Dave Ramsey
How many months?
- [56:38]
Ken Coleman
I'm just asking for a number. How many years?
- [56:44]
Caller
20. Like 20 months.
- [56:46]
Ken Coleman
20 months.
- [56:47]
Dave Ramsey
Okay, so two years. You've had two seasons and he didn't make a living.
- [56:52]
Ken Coleman
I just feel like there's more underneath the surface here. I don't know if we can identify it because you're asking us for some magical answer as to what does the business book say. But the bottom line, if we can't pay the bills with the business, there's.
- [57:06]
Dave Ramsey
No reason to have the business.
- [57:07]
Ken Coleman
Yeah, he needs to go work for somebody.
- [57:09]
Dave Ramsey
Lawn care is not a hobby. So we need to make a profit. And really, honestly, you should make a profit the first time you cut a piece of grass. There's really not that much to it. I mean, just work your butt off is the problem. It doesn't sound like he works much is what it sounds to me. Yeah. Are you saying that under all this, Right. Your husband doesn't work very hard?
- [57:33]
Caller
Well, yeah, he only does a few jobs a week.
- [57:36]
Ken Coleman
Yeah, that's a problem.
- [57:37]
Dave Ramsey
Yeah. I think he needs to get a job. Yeah. So is lawnmowers. Yeah. Because I don't think he's got the stuff to go get the business and keep the business and get up out of bed and go do the business. That's correct. And so until he gets that stuff going, you have to be what we call a self starter. Hello. And we're not talking about his lawnmower, we're talking about him. And so, yeah, you need to sell the equipment and go get a job because of what you're describing there. But no, there's not a magic. When do you know when to close a business? You close a business when what you're doing is not working and there's no visible hope of it getting better. And based on what you're telling us, nothing has changed here that's causing this to trend upward in a good direction. It's just kind of stuck on not so great.
- [58:28]
Ken Coleman
And this is not a business problem. This is a. And I'm not saying this with unkindness. I'm telling you he has a problem. Because here's the reality. Somebody who's healthy or remotely healthy, if they've got a business and they only have two jobs a week, they are working other jobs while trying to get that going. That would be called a side hustle. If he's healthy. So something's going on inside of him, him, with him. That is the source of this problem. It's not the lawn care business, and it's not the watering restrictions that. Now, that's the hard truth, but that's the reality of you two. Have to have a marriage conversation.
- [59:07]
Dave Ramsey
Yeah. Throw out the Nintendo.
- [59:10]
Ken Coleman
I mean, am I right, Dave? You've done this a long time. There are reasons why a guy won't get out and work.
- [59:16]
Dave Ramsey
There's something.
- [59:16]
Ken Coleman
There's always something there.
- [59:18]
Dave Ramsey
I mean, it's not my generation, but some generations, I hear, have a Nintendo problem. But, yeah, Call of Duty, but the wrong call and the wrong duty, you know.
- [59:28]
Ken Coleman
Oh, well done.
- [59:30]
Dave Ramsey
Yes. Well played, Dave. It's almost like you have a radio show. Steve's in Washington. Hey, Steve, what's up?
- [59:37]
Caller
Hey, gents. Thank you for taking my call.
- [59:40]
Dave Ramsey
Sure, man. Well, how can we help?
- [59:43]
Caller
Yeah, first of all, thanks for being you. You both impacted my life greatly. Still, thank you. I really appreciate it. Yeah. Hey, so I've had the privilege to start over in life. I just got remarried and. And just. Still a wonderful woman, and. But for until June, we have to live separately because I made a commitment to stay in my area until my daughter graduates, and then we'll connect. So we did our real first budget meeting on Sunday, and we're doing the Heavy Dollar app.
- [60:14]
Dave Ramsey
How far about are you? How far apart are y'?
- [60:16]
Caller
All? Four and a half hours.
- [60:19]
Dave Ramsey
Okay. And what does she do for a living?
- [60:21]
Caller
She works for the Department of Justice.
- [60:24]
Dave Ramsey
Okay. And what do you do?
- [60:27]
Caller
Self employed. And I work two days a week part time as an EMT firefighter.
- [60:31]
Dave Ramsey
Okay.
- [60:32]
Caller
All right.
- [60:33]
Dave Ramsey
Okay. Wow. So you see, you got four months of wow.
- [60:37]
Ken Coleman
What's your business?
- [60:38]
Dave Ramsey
It's the weirdest newlywed year ever. Yeah, yeah, yeah.
- [60:42]
Caller
No, so they're working out of Debt. And I carry a little bit of debt into this, but my business is property management and I, I oversee a 600 acre private ski resort.
- [60:55]
Dave Ramsey
So who's, who's moving? Who's moving after June? You.
- [60:58]
Caller
I will. Yeah, I will be moving.
- [61:00]
Ken Coleman
Oh, going into the D.C. metro area, huh? Well, northern Virginia.
- [61:06]
Caller
No, no, she works out of the Portland office and I'm going to be.
- [61:10]
Dave Ramsey
Oh, they're in Washington.
- [61:11]
Ken Coleman
You're in Washington state. I apologize.
- [61:13]
Dave Ramsey
Okay.
- [61:14]
Caller
Yeah, Washington state.
- [61:15]
Dave Ramsey
Yep.
- [61:15]
Caller
And she's going to be transferred to Billings, and so we'll have that confirmation in March. So, so it's, yeah, there's a lot of, lot of little things to figure out. One step at a time here.
- [61:27]
Ken Coleman
How can we help?
- [61:28]
Caller
And yeah, so we're figuring out, like, how do we, I guess, communicate well, as we still live separately, but trying to, you know, as we become one, you know, budget together and as we're putting each other on each other's bank accounts. And then eventually it'll become, we figure probably best till after we move in June. And, but right now, just like I'm, I bring in, I got under $8,000 to go to be debt free. And she is debt free. But at the same time, I carry a little bit of shame. Like, I, I, I brought this in and I don't feel like, like I, I can, we can pay it off, but also at the same token, oh.
- [62:12]
Dave Ramsey
We are married, so we can pay it off. That's what goes with it.
- [62:15]
Caller
Right.
- [62:16]
Dave Ramsey
That's just the deal. Sorry. That's the way it works, man. For richer, for poorer, for sickness and health. And she gets the flu. You'll bite, make chicken soup. It's the way it works out.
- [62:25]
Caller
Yeah, absolutely. So, yeah, I don't know. Any advice, I guess, in that ramen?
- [62:30]
Dave Ramsey
Never.
- [62:31]
Caller
Yeah, I, this is an awesome blessing to be in. At the same token, I'm like, how do I do this?
- [62:37]
Dave Ramsey
Well, yeah, y' all figured out a real strenuous way to do it, that's for sure.
- [62:40]
Caller
Yeah, no kidding.
- [62:41]
Dave Ramsey
And so, yeah, the only thing I can tell you is that what you're trying to do is difficult at best. When you first get married, living in the same house and now you just added like a 10x to it by not being there. So the only way I know to cover that is with piles of communication, like over communicate feelings, over communicate details, constantly be working on the stupid budget like it was a. Because that's gonna give you a place to talk about all this stuff. So, like every night we have a budget Meeting on the phone about every dollar and every night you talk about it a little bit. I feel a little bit ashamed about this, but I'm still gonna work through it. We're gonna do it together and every night and just lots and lots and lots and lots and lot. With interest rates finally dropping, now could be the window you've been waiting for to buy a home or refinance. But don't just rush in blind. Sit down with someone at Churchill Mortgage who will tell you the truth and walk you through a plan to position you better for long term success. Listen, markets go up and down. That's nothing new. But the fact remains, building equity through home ownership is still one of the best ways for Americans to create safety and security in their lives. That's why I've recommended Churchill for decades. Their team of trusted advisors helps you build a simple, clear plan to buy or refinance a home the smart way. So don't let the market or headlines or experts on the Internet that tell you when you're ready to buy or refinance a home. You can decide that with guidance from a team who actually cares about your future. Go to Churchill Mortgage.com today and start your plan.
- [64:39]
Ken Coleman
This is a paid advertisement in MLS ID 1591 in MLS consumeraccess.org/housing lender.
- [65:00]
Dave Ramsey
Wow, somebody's listening. So I said here on the air about James, how long ago was that? We're talking about real estate fixes. That's probably, probably a month ago.
- [65:13]
Ken Coleman
Oh yeah, it was about a month ago.
- [65:14]
Dave Ramsey
Yeah, probably right after Thanksgiving. And this is, this is being recorded the first week of the year. So I said, listen, there's a couple things we can do. This housing market. The problem with the housing market is there's always been a shortage of inventory for the last two decades. Really? And a shortage of inventory has caused the market to get stopped up. And there's a couple things we could do to loosen the inventory. And one is to prohibit the institutional, corporate hedge funds and the Chinese from buying blocks and blocks of thousands and thousands of single family homes and taking them off the market.
- [65:46]
Ken Coleman
I vote for that.
- [65:47]
Dave Ramsey
And putting up, making them permanent rentals. And so when you do that, you suck out the inventory. And when the inventory sucked out, the market clogs up and stops. And today President Trump says he will seek a ban on institutional investors from buying single family homes.
- [66:03]
Ken Coleman
Is he listening to the podcast, Dave?
- [66:05]
Dave Ramsey
I don't know. He didn't call me Ken. I know that he didn't say Dave, I got an idea. It's huge. You never know that.
- [66:11]
Ken Coleman
You never know. He's famous for watching TV and news and calling in, in live on shows. Maybe, maybe he'll call in and you can walk him through how to do it.
- [66:20]
Dave Ramsey
Well, I just know, I mean, I'm happy if it's his idea. As long as it happens, right? I don't care whose idea it is. Yeah. This is the other thing we said and if you're listening, President Trump, we said this one too, and I hadn't seen this show up yet. Maybe it'll come up in a week or two. The capital gains, zero capital gains on personal residence, up to a half million dollars, married, filing jointly has been in place for like 25 years. So here's what you do. Make that $2 million. Oh, and you know what happens? A bunch of boomers that are sitting on a bunch of equity would sell their houses and that would unclog the market and put a bunch of inventory on the market. Because they would. If you could put $2 million in your pocket and go, you know, to wherever, you know, go buy a condo or move down, some of the boomers. Right, they would do it. But right now they got capital gains on everything over a half million dollars. And half a million dollars on a lot of games is not split spit. So if you got no capital gains tax free up to a half million, now what if you made that 2 million? I promise you it move the upper end of the market wide open. And when the upper end moves open, then that lives at breathing room and everything dominoes all the way down to the beginning of the market because everybody can move up, then they're not stuck. Ola.
- [67:27]
Ken Coleman
Careful, Dave, you're going to give America indigestion because it makes so much sense. And those of you listening and watching are going, you're right, Dave, that would be amazing. Why isn't it happen?
- [67:35]
Dave Ramsey
And you can write these two things down because it doesn't happen very often. Dave Ramsey has a government idea to fix anything.
- [67:42]
Ken Coleman
Well, not just good legislation, I know, but I just.
- [67:44]
Dave Ramsey
The number of times I asked government for help's pretty close to zero.
- [67:48]
Ken Coleman
This is one of the few things.
- [67:49]
Dave Ramsey
There'S both of these things they could do and it would actually have an impact and it really wouldn't take long.
- [67:54]
Ken Coleman
But why won't they, Dave? Tell America why they won't. Because they like our tax dollars.
- [68:00]
Dave Ramsey
Well, I don't know who they is, but somebody they is all of them up there, all of them, the whole kit and caboodle.
- [68:06]
Ken Coleman
It's the machine.
- [68:07]
Dave Ramsey
The machine.
- [68:08]
Ken Coleman
So what we do is we gotta throw.
- [68:10]
Dave Ramsey
You sound like conspiracy theorist.
- [68:11]
Ken Coleman
No, not at all. Not at all. Throw the bums out until they start giving us policies like this. But listen really quick. I don't want people to miss what Dave just said. These are two very practical things that would absolutely make a huge dent in this real estate cog happen immediately.
- [68:28]
Dave Ramsey
Today's question of the day is brought to you by. Why refi when it feels like your private student loans have buried your future? Why refi catch can help dig you out with a low fixed rate refinancing clear path forward. Go to yrefi.com Ramsey that's the letter y r e f y.com Ramsey not in all states.
- [68:46]
Ken Coleman
Today's question comes from Jasmine in Tennessee. We're out of debt and have just finished building a three to six month emergency fund. I'm anticipating that one of our two cars may need major repairs soon. In general, how do you think about deciding when to repair a vehicle versus when to replace it? I don't want to panic, buy another car, but I'm also wary of getting ripped off by a mechanic. Mechanic, that's a really good question. I think that's about as practical of as a fear as we hear. You know, in this situation, I'm not going to spend money on a car if let's say the car is worth 2500 bucks and it costs 3000 to.
- [69:24]
Dave Ramsey
Fix it, well, you don't do that.
- [69:25]
Ken Coleman
You don't do that. You know, other than that you want to try to duct tape it, keep that thing going, get yourself a good quality mechanic. Now I'm passionate about this particular issue, Dave, because I fall in this category where I'm very suspicious. But we have found through multiple conversations with people that have lived here. When we first moved here almost 12 years ago, I talked to several people and tested it out like you would a church or a doctor or maybe the person who cuts your hair. When we had some issues come up and we found a really reliable mechanic who we absolutely know is not a thief and a crook. And that's important because if you do that, they will help you and they won't try to rip you off. They'll say, okay, here's what could be fixed. But this is the should be to keep this sucker going from point A to B. That's really important when you're in this hoopty land because it will get you through. You can keep a hooptie going longer than you think. If you got an Honest mechanic.
- [70:21]
Dave Ramsey
Yeah. Auto repair is a low trust industry. We were really pumped about having Christian Brothers come on.
- [70:26]
Ken Coleman
Yes, that's what we're doing.
- [70:27]
Dave Ramsey
Official auto repair partner of the Ramsey show. And we trust Christian Brothers Automotive. I've known these guys a long time. They've had a shop in our area, but they got shops all over. And whether you're just getting started in the baby steps or your baby step seven, you want your car to last, we recommend Christian Brothers Automotive. Go to cbac.com Ramsey I'll work that into the thing here. They just came on board with us. We're really glad they're here. The answer to your question, Jasmine, is whatever the car is worth as salvage, not fixed, plus the repair cannot equal more than the value after the replacement repair. So if the car is worth $1,000 and it takes $3,000 to fix the car at the end, that's $4,000. But the car is worth two after you fix it. Well, you don't spend that. That's good money after bad. Okay. But you also look for. You may be sitting on a $12,000 car, blew an engine. You don't go to the dealer and buy a brand new engine from the manufacturer that'll cost more than a new car, for God's sakes. No, you get a used engine, a rebuilt engine or used engine from a salvage yard and you have someone like Christian Brothers install it. And you can do that for about 25 cents on the dollar. What I'm talking about with the dealer. So it depends on what the car is, what the size of the repair is, as to all of that, but by and large, it's a car under $5,000 is the only one you would hardly ever. You most always will fix it otherwise. Otherwise, because you can find an inexpensive way to get it rolling again, even if you fixed it, to sell it. Even if you fix it and say, okay, now it runs. Now I can sell it for $4,000 instead of $1,000, but it cost me $1,000 to fix it. Okay, that's good. That's a good investment. Right? So we can go that way. So if you're looking for christian brothers@cbac.com Ramsey, they are now the official auto repair partner of the Ramsey Show. John's in Naples. Hey, John, what's up?
- [72:30]
Caller
Hey, how are you guys doing?
- [72:31]
Dave Ramsey
Better than I deserve. How can I help?
- [72:34]
Caller
And so I'm just trying to get my financial future started. And I'm having a lot of issues with that. I have a little bit of you know, student loans I want to pay off. But I have a little untraditional background with school and you know, how I got to where I am today. And I'm just kind of struggling to get, you know, off the starting line and kind of into the working force and corporate community, whatever it may be to get my future, future moving in that direction.
- [72:58]
Dave Ramsey
You have a degree?
- [73:00]
Caller
I do, yes. I have a bachelor's in business and a master's in data analytics.
- [73:04]
Dave Ramsey
And you can't get a job?
- [73:06]
Caller
I've done about 2,000 applications.
- [73:09]
Dave Ramsey
Well, you suck at that.
- [73:12]
Caller
I've met with C suite executives of Fortune 500 companies, alumni from my university. I've spoken to my university, I've spoken to friends, family. I have come through just about every avenue that I really know how to and I don't, I really don't know what, you know, the, what the problem is with trying to get through and, and you know, kickstart my career.
- [73:37]
Dave Ramsey
What's your income target? What are you asking these people to pay you?
- [73:42]
Caller
Usually I put on the lower end of what their range is. So I've applied from New York to Anchorage. I've put, you know, you know, anywhere between 80 to, you know, some jobs are, you know, 120 to 150. So I put 120. Sometimes I'd even put under just to try to get through to, you know, HR to get an interview and it's just not even working.
- [74:04]
Dave Ramsey
Have you had interviews?
- [74:06]
Caller
I've had a handful, but only because I've had internal referrals and that's where they come from.
- [74:12]
Dave Ramsey
That's where interviews come from. They don't come from 2018 applications. Wow. I tell you what, hang on, I'm going to bring you back around cuz Coleman is about the best on the planet at this and I want him to help you.
- [75:00]
Ken Coleman
All right.
- [75:00]
Dave Ramsey
John's got a degree in a master's degree in data analytics, is applied for over 2,000 jobs, has not been able to get a job. Ken Coleman, help the guy. Okay.
- [75:10]
Ken Coleman
All right, John, so you've been applying for things and you've been in the 80 to 120,000 range. I think where I'd want to start is what is a layer or a level rather below where you've been applying? Is there such a thing or are you saying that those entry level are yielding those kind of salaries?
- [75:29]
Caller
Those are the entry level. One of the issues is that I haven't been able to do an internship. You know, I was an athlete in college and I was training over the summer so I was unable to go in and actually, you know, make the connections that way. So, you know, I, when I apply for associator and analyst level, you know, they say, well, he doesn't have experience. And my internal reps, you have to fight for me, say, well, you know, nobody at this level has experience because it's the entry level. So that's kind of how they have been able to get me through the interviews. But most companies just don't even, you know, I kind of get a email pretty quick.
- [76:05]
Dave Ramsey
So when you got the, when you got the interview with internal records, what happened?
- [76:10]
Caller
I made it down to the final two and then office politics and some other things went on that just were out of my control and just went in another direction.
- [76:18]
Ken Coleman
So you told Dave before we went to break that it was a handful of interviews, is that right? How many are we talking about that you've actually gotten?
- [76:26]
Caller
I've done four for companies that are actually based like base salary and I've had a handful that are the commission based, selling insurance. Insurance. Not really something I'm interested in.
- [76:37]
Dave Ramsey
Okay.
- [76:38]
Caller
I've done every avenue from, I've talked to C suite executives, I've talked to my grad school, my university.
- [76:44]
Ken Coleman
Yeah, no, I get it.
- [76:45]
Caller
It's a very wide net.
- [76:46]
Ken Coleman
I totally get that. And I want to, I appreciate your activity, but activity in this particular situation is not the, the answer, just activity. 2000 applications. You might as well have been spitting in the wind driving down the interstate. Interstate because of the nature of AI and filters and all these things. So what we want to do is, is we want to get more of those interviews. And you've only got four interviews. The conversation with C suiters, those don't always yield what you think either because while they may give you time, I love that you got there. So you got some spunk. But here's the deal. The simple advice for you is this. You've got to up the amount of interviews that you're getting. So you've only got four in your specific so zero for four in today's job economy. Not surprising. There's no question that you're up against the fact that you're in entry level. And so it's actually more competitive right now for entry level roles. So there's no silver bullet here other than this idea that I wrote a book around. I'm going to give you the book as my gift to you. It's called the proximity principle. Now what the proximity principle does is it increases Your odds of getting actual interviews. And one of the first things Dave said to you was, how are you doing an interview? So I want to know, have you gotten any feedback from anybody that's interviewed you to where? We don't blame it on office politics and whatever, but any feedback on how you could do better in the interview? Do you have any of that?
- [78:13]
Caller
I've done mock interviews. I don't have any issues with answering the questions. I don't have any issues with my background. It's just, you know, I don't really know other than the companies. I've been fortunate enough because of my internal wrecks. I don't know why I can't even get through to other companies. You know, I bought software to. To find out who, you know, hiring managers are. So after I apply, I'll send them an email, my contact information, telling them why I'm applying. I'm following up with them. I'm trying to do everything that I've been told to do.
- [78:43]
Ken Coleman
Yeah, it just doesn't work.
- [78:45]
Caller
The degree I had, the grades, and just for whatever reason, in the background of being an athlete doesn't help.
- [78:51]
Ken Coleman
No, not at all. Nobody cares. So, listen, I'm just trying to tell you, you got to stop saying these things. Not even that helps. Here's the simple thing. You have got to connect relationships, and this is hard work.
- [79:05]
Dave Ramsey
The four interviews you got, you got the right way. We need to do that 40 times, and you'll get a job.
- [79:10]
Ken Coleman
We have to repeat that process.
- [79:12]
Caller
Not.
- [79:13]
Dave Ramsey
Not cold calling something off of software and not filling out applications that are spitting in the wind.
- [79:18]
Ken Coleman
But here's what I would do today if I were you. You need to be working a job. And I'm talking stocking shelves at Target. NFL MVP hall of Famer Kurt Warner was stocking grocery shelves while playing in the Arena Football League. He did that because he wanted to make it to the NFL. I think it's the same story for you. You're an athlete. That's why I give you that example. But Kurt Warner only stocked shells because he had to feed the baby and his wife. But he did it so that he could stay in the Arena Football League. And for you right now, for you to get in this work, you need to be working, bringing home income, not becoming depressed, because that's what happens. You get depressed pretty quick, get frustrated, and you create this false narrative which will hold you back. So the best thing you can do right now is go get ajob be so that I'm getting up every day, taking A shower, shaving and working and bringing home a check while I'm using Ken's Proximity Principle and repeating the process that worked four times. And the more. Let's say it's eight interviews or 12, you're going to start to see a yes. All of those no's lead to a yes. And I wish I had some silver bullet, but it's a law of numbers. But the right numbers.
- [80:34]
Dave Ramsey
Yeah, hang on. We'll get you a copy of Proximity Principle and Ken's book, Finding the Work youk're Wired to Do. Both will help you in this process. They'll be our gift to you to help you get moving. I know you're frustrated, man, and it does sound like you're doing a lot of things right. Yeah. But you're also wasting a lot of burned calories to feel like you're doing something right and some other things. So let's realign some of the efforts the way Ken's teaching, and I think you'll see some better results. I hope you do. My goodness, that's frustrating as crud.
- [80:59]
Ken Coleman
All right.
- [81:00]
Dave Ramsey
Jessica is in Dallas. Hi, Jessica.
- [81:02]
Ken Coleman
How you are?
- [81:02]
Dave Ramsey
How are you?
- [81:03]
Caller
Hey. I'm good. How are you?
- [81:05]
Dave Ramsey
All better than we deserve. What's up?
- [81:08]
Caller
Well, thanks for taking my call. I have a question about emergency funds versus sinking funds. So my husband and I, we learned about you, Dave, in 2020. Paid up all of our debt except for our mortgage. And each month, you know, I'm using every dollar to designate money into different funds with our house sinking funds. I'm just wondering if I'm using it incorrectly. I'm getting a little nervous. As our house gets older, we're going to need major things like new windows. And I feel like the house funds never really grows because, of course, something always comes up. We need a new water heater, roof. And so it just seems like every year we're getting money in that fund, and every year I need to take some out. And I'm just thinking, you know, years, a few years down the line, what if we need to spend $30,000 on new windows?
- [82:03]
Dave Ramsey
Well, you need a plan to do. You need a plan to do that. That's not an emergency. That's a no. That's a known thing. I mean, your sinking fund is underfunded.
- [82:15]
Caller
Okay.
- [82:16]
Dave Ramsey
But I don't know that you need to necessarily be funding something for 25 years from today in there. But if you. If you think in three years you're gonna need windows and it's 30,000 bucks, you probably ought to Start now.
- [82:28]
Caller
Well, I'm just thinking I would already have the 30,000 if I didn't take money out of the house fund for repairs.
- [82:34]
Dave Ramsey
What are you going to repair the house with if you don't? Okay, you have to repair the house and fix the windows. Both.
- [82:43]
Caller
Okay.
- [82:44]
Dave Ramsey
And neither one are an emergency. Both are predictable events.
- [82:48]
Caller
Okay, so I just.
- [82:49]
Dave Ramsey
You maybe need a new sinking fund for windows.
- [82:53]
Caller
Yeah, that's true.
- [82:54]
Dave Ramsey
And start planting because since it's worrying you, keeping you up at night, I don't know. But you know, seriously, what do you think the time horizon is on that? When do you think you're going to need them?
- [83:04]
Caller
I mean, honestly, we could use them now. But it's not an emergency for us to use them now. You know, we do what we can. When it gets cold here, it's not cold in Dallas for very long. But I mean, it's coming down the line. And I know it's a big cost.
- [83:21]
Dave Ramsey
So put a number on it and put a date on it and back into it and save for it.
- [83:27]
Caller
Okay.
- [83:27]
Dave Ramsey
Go get a bid or three and say, okay, 36,000 bucks in 36 months, that'd be a thousand bucks a month. Hello.
- [83:35]
Caller
Sure.
- [83:36]
Dave Ramsey
Yeah, put a number on it and put a date on it and you can tell what your sinking fund needs to look like. And because you got to do the other home repairs anyway. And you can't wait and call this an emergency because you knew it was coming. It's like saying, oh, my tires are bald. That's an emergency. No, you knew your dead gum tires were going to work wear out. You should have been planning to replace.
- [83:53]
Ken Coleman
Your tires all too close to home. Dave. I feel like you're Stacy talking to me right now. So she was looking at my tire treads about six months ago. She goes, you're an idiot. You're literally like taking your life in your own hands. I didn't. I never pay attention to stuff like that.
- [84:05]
Dave Ramsey
And sure enough, she was right. I'm glad.
- [84:07]
Ken Coleman
Thankfully we had the money for the tires.
- [84:09]
Dave Ramsey
I'm glad.
- [84:09]
Ken Coleman
By the way, windows in Dallas, if it's a little chilly, I'm getting some duct tape. We're going to stretch this a little bit. I'm kidding.
- [84:16]
Dave Ramsey
They live in a two million dollar house, man. I don't know what she lives in.
- [84:20]
Ken Coleman
I wasn't serious. The duct tape.
- [84:24]
Dave Ramsey
You can't fix everything with duct tape. 10. You can try, but you can't fix everything.
- [84:30]
Ken Coleman
I don't.
- [85:04]
Dave Ramsey
Welcome back to the Ramsey show in the Fair Winds Credit Union Studio. I hello, I'm Dave Ramsey. Ken Coleman Ramsey personality, host of the Ramsey network hit Front row seat is my co host today. Open phones here at 888-255-225. If you go to ramseysolutions.comliveevents you can join us this evening. We'll be doing a live stream that is completely free to help you get back control of your money. Take back control of your money in 2020. And we'd love to have you guys join us. There'll be several hundred thousand people there. We'll be giving away $20,000 tonight on that live stream. So make sure you sign up for the live stream and that puts you automatically in the drawing. The whole deal is free. We'd love to have you hang out. Jade and I will be doing that. So Jade, wash our and I so make sure you join us. Jennifer's with us in Nashville. Hi, Jennifer, how are you?
- [85:57]
Caller
I'm good. Thank you for taking my call. I am so excited to talk to you.
- [86:01]
Dave Ramsey
You too. What's up?
- [86:03]
Caller
Okay, so I'm hoping to retire in 2032. I'm debt free with the exception of my house, which I still owe 280,000 on at a 2.25 interest rate. My question is what should I be prioritizing during my last six years of employment? I would like to prioritize paying off my house. And if I put all my energy and money towards paying it off, I could do it before I retire, but it would be at the expense of contributing to my 401k. But others say that since my interest rate is so low, I really need to be putting all my money in my 401k. And so but that means I'd have to take a house payment into retirement and that scares the crap out of me. So I kind of wanted to know. I think I know what you're going to say, but I just wanted to know what you thought.
- [86:47]
Dave Ramsey
What's your household income?
- [86:50]
Caller
I make 162,000.
- [86:55]
Dave Ramsey
Okay. And so you have six years. Years, right.
- [86:59]
Caller
Six years. And I'll have two federal pensions when I retire which are about 75,000 a year. And then if Social Security is still around like another 30.
- [87:09]
Dave Ramsey
Yeah. So six times four is 240.
- [87:14]
Caller
Right, right.
- [87:17]
Dave Ramsey
So six times 45,000 out of 160 gets your house paid off, which leaves you 120. Why can you not keep doing retirement also?
- [87:30]
Caller
Oh, I could. You mean take my house payment into retirement?
- [87:34]
Dave Ramsey
No, darling, $45,000 a year. $45,000 a year from today, for the next six years, pays off a $280,000 house. 45,000 extra on the house. Okay.
- [87:47]
Caller
Yes.
- [87:48]
Dave Ramsey
All right, now you make 1 6, 60, right? Right. Minus 45 leaves you 115.
- [87:56]
Caller
Right.
- [87:57]
Dave Ramsey
Okay. You could still do retirement and still live.
- [88:05]
Caller
Yeah, I mean, I know 162,000, it is a lot of money, but you know, you got to take out. There's a lot of stuff in there. Also when you take off, take out taxes and, and just everything else that goes with it.
- [88:20]
Dave Ramsey
What's everything else hiding?
- [88:23]
Caller
Well, okay, so you have taxes, which is like 30 some thousand hiding my current house payment, which is 30 grand.
- [88:30]
Dave Ramsey
You're what? You're what? What'd you say?
- [88:34]
Caller
What?
- [88:35]
Dave Ramsey
Your what payment?
- [88:36]
Caller
I said my current house.
- [88:37]
Dave Ramsey
Oh, your current house. Okay, well, that would include. You include your house payment because Basically, I mean, $45,000 is more than enough house payment and everything to pay off the house. You don't pay $30,000 a year on your house, do you?
- [88:54]
Caller
Well, I mean, I, when I think of that, I throw in all of my taxes and insurance. That's what I, I roll into my house payment. How I think about it, I see.
- [89:04]
Dave Ramsey
Yeah, you're right. That's true. Okay. Okay. I just, it feels like that you can, that you don't have to completely choose. It feels like you can get the house paid off and still do something towards retirement. You may have to cut some more. You may have to scrimp somewhere else to hit this goal. I don't know and I don't know what all is coming out of your check. You may want to look at that, but you may be thinking about coming home after 401k contributions. And that's, you know, that's not what we're talking still. That's part of the whole. See, so if you kept doing your 401k and then it's pinchy to do the house, but you could still do 45 total on the house in principal reduction a year, not counting interest and taxes and insurance. Right. But yeah, if you did that, that would get you there. So it's close. What's the probability over the next six years of your income changing?
- [90:00]
Caller
Well, so it won't go up much. It will continue to grow. I do. The other thing is I do own a fourth of a farm. It's an irrevocable trust now. And so that's vested. But, you know, I'm not sure when we're going to sell that. You never want to say it like that because it means one of my parents has passed.
- [90:24]
But.
- [90:24]
So there will be about a half million dollar, you know, income coming in at some point in my.
- [90:30]
Dave Ramsey
And how much is in your nest egg now?
- [90:34]
Caller
So right now, 30,000. Oh, oh, and then my 401k is 480.
- [90:40]
Dave Ramsey
That's your nest egg. Okay.
- [90:42]
Ken Coleman
I knew something was up there.
- [90:43]
Caller
I'm sorry.
- [90:44]
Ken Coleman
Can I ask a real simple question? What do you. What do you do for the government? What is your job? How would you describe yourself as a professional?
- [90:52]
Caller
As an attorney? I specialize in labor.
- [90:55]
Dave Ramsey
Oh, good for you and your work for the government.
- [90:58]
Caller
I do.
- [90:58]
Ken Coleman
Does that preclude you from doing side work?
- [91:03]
Caller
No.
- [91:04]
Ken Coleman
Okay, here's the exercise. Okay, here's the exercise I would go through. I think Dave's right. But I also think, you know your budget pretty darn good. So if it was me, I would not be asking the question, do I sacrifice retirement investing in order to pay this house off? I would be asking the question, how much additional money do I need to make per year over the next six years to pay this house off? You are an attorney. I know you can make that money.
- [91:33]
Dave Ramsey
Yeah, if you made an extra 40 grand a year. This is soft. That's one thing to do.
- [91:37]
Ken Coleman
That's one way to do it.
- [91:38]
Dave Ramsey
You know, it's just a little side thing, some kind of a side, I don't know, venture or whatever. Here's the thing. You're going to be okay either way. You're fine. I would pay off the house early. I would put the house on a schedule to be done in six years. And then I would squeeze what I can out of retirement from working extra and, or out of your budget by carefully looking at it, all the things we've about talked. Talked about. Because here's the deal. You got a half a million now in seven years, that'll be, if it's in good mutual funds, that'll double. That'll be a million. And then the house is worth what today?
- [92:10]
Caller
700 something.
- [92:11]
Dave Ramsey
So it'll probably be worth a million and a half in seven years, give or take. Okay, and so at that point, you're going to be worth two and a half million dollars and the farm is another half million. And that's six years from today. And you'll be how old? At that point?
- [92:24]
Caller
I will be 62.
- [92:25]
Ken Coleman
Okay, and about what, 70,000 in retirement coming to you from the pension plus Social Security, right?
- [92:33]
Caller
Yeah. So 100,000 if everything stays the way it is now.
- [92:36]
Ken Coleman
Okay, so you're at 100.
- [92:38]
Dave Ramsey
So you're definitely okay if you add nothing to retirement and pay off the house over the next six years. To answer your question, now that we dug all the way through this, okay, but it took a minute to get there. But that's exactly. You are okay to do all this. I, however, am like you, I want to be doing something further towards retirement. And so I want to investigate these other two possibilities. Adding some income and or squeezing this budget. But I'm just going to sit down and go, $45,000 a year has got to go on principal and that comes out of the budget. Six years, I'm done. And you're going to be okay. Make sure your other stuff's invested right in good mutual funds.
- [93:18]
Caller
Sam. Foreign.
- [93:50]
Ken Coleman
Hey, George Camel here. So you're thinking about buying or selling your home? It's exciting, but there's a lot to think about and all those decisions can feel overwhelming. Well, here's the good news. You don't have to tackle the process alone. Ramsey's real estate home base is the place to find all of your free tools and resources for help to get prepared to buy or sell your home. With contract confidence, you'll find calculators, start to finish guides, a podcast, and even an in depth video course hosted by yours truly.
- [94:16]
Dave Ramsey
What's not to love?
- [94:17]
Ken Coleman
So if you're ready to take the next steps toward your home goals, go to ramseysolutions.com realestate that's ramseysolutions.com realestate.
- [94:38]
Dave Ramsey
Buying or selling a home is a big deal. Rates are coming down. Looks like we're gonna see 5% or so on a 15 year any minute here. So good times, good times. A lot of houses gonna be coming on the market as the grass gets green and it might be yours or you might be looking for a house. You need a pro in your corner. Someone that's high octane and high protein. The Ramsey trusted program is the only way to find a top agent you trust. That we trust. Make sure your home's a blessing and not a burden. Go to Ramsey Trusted Real estate. You can find one for free at ramseysolutions. Or click the notes in the or click the link in the show notes. Brittany is in Grand Rapids. Hi Brittany. How are you?
- [95:20]
Caller
Good.
- [95:21]
Ken Coleman
How are you?
- [95:22]
Dave Ramsey
Better than I deserve. What's up?
- [95:25]
Caller
I have just a question. I was curious what your thoughts were on if it's a bad idea to pay for our daughter to go to private school while we are still trying to get out of debt. Yeah, okay.
- [95:41]
Dave Ramsey
Well, there's a That's a loaded question. And there's a lot of answers to it.
- [95:46]
Caller
Yeah.
- [95:47]
Dave Ramsey
So the answer is. It depends. Number one, I would not strain my family budget to where I couldn't breathe in any case. Okay. To do that, I would not spend $46,000 a year for a four year old to go to a private school. And sometimes I get that call. So what is your. Yours?
- [96:08]
Caller
Yeah. So we are in the process of paying off debt now.
- [96:12]
Dave Ramsey
What is your private school cost?
- [96:15]
Caller
It's not that much. We're going between two. The cheaper one is 1035 for the year. The other one is like 1400 for the year.
- [96:24]
Dave Ramsey
I'm so sorry. This is not a school. This is a daycare, right?
- [96:28]
Caller
Nope, it's preschool.
- [96:29]
Dave Ramsey
$1,000 a year.
- [96:33]
Caller
Yeah.
- [96:33]
Dave Ramsey
And she goes every day.
- [96:36]
Caller
No. So at 4 years old, they don't do. It's only like one of them is two days a week, and the other one's three days a week and they're half day.
- [96:46]
Dave Ramsey
Okay, Don. And this is called Mother's Day out. This is not called private school.
- [96:53]
Ken Coleman
Yeah.
- [96:53]
Dave Ramsey
Okay.
- [96:55]
Ken Coleman
Or run from any school that only charges you $1,000 a year.
- [96:59]
Dave Ramsey
Well, I mean, they're not. It's not a school. Your kids going over two days a week while you go grocery shopping, for God's sakes. Okay, so. But if you're going to do Mother's Day out, that's okay. I mean, they don't have a public version of that. So private is your only option. And what's your household income?
- [97:20]
Caller
It's kind of complicated. So I bring home about 2,200 to 2,300amonth. My husband, on the low end, brings home 2,800amonth, but it could go up to 5,000amonth.
- [97:37]
Dave Ramsey
When.
- [97:39]
Caller
So he manages a snow removal company. So like right now he's bringing home a few thousand a month, and then he does landscaping in the summer. So it just kind of depends if he's working overtime or not.
- [97:52]
Dave Ramsey
Okay.
- [97:54]
Ken Coleman
And you're in baby step two.
- [97:56]
Caller
Correct.
- [97:57]
Ken Coleman
What's your debt?
- [97:58]
Dave Ramsey
How much?
- [97:59]
Caller
Yeah, we have a total of 303,000.
- [98:02]
Dave Ramsey
Hello.
- [98:02]
Ken Coleman
What does that consist of?
- [98:05]
Caller
Yeah, 277,000 is left on the mortgage.
- [98:08]
Dave Ramsey
Oh, okay.
- [98:09]
Caller
We have 9,700 left on my car, 4,600 left on my student loans, and then 11,000 left on 15.
- [98:20]
Student loan.
- [98:20]
Ken Coleman
So shouldn't he be doing overtime now?
- [98:25]
Caller
Yes, lots of overtime.
- [98:26]
Ken Coleman
Is he?
- [98:28]
Caller
Yes. Yep. He's working. The last, like, average was anywhere from 95 to 110 hours a week.
- [98:35]
Ken Coleman
And he's only bringing 2800 homes.
- [98:38]
Dave Ramsey
5000?
- [98:40]
Caller
Yeah. No, he actually, like last month, I think he brought home closer to 8,000.
- [98:45]
Ken Coleman
Okay, that makes more sense. All right, I got it.
- [98:47]
Dave Ramsey
Okay.
- [98:47]
Caller
Okay.
- [98:48]
Yeah, I just filled our budget off of the low end. That way there's no, like, surprises.
- [98:52]
Dave Ramsey
Okay. So are you working in the home?
- [98:57]
Caller
I know I'm a nurse.
- [98:58]
Dave Ramsey
So who keeps your child while you work?
- [99:01]
Caller
Yes. So we pay somebody to watch the kiddos three days a week.
- [99:07]
Dave Ramsey
Oh, and this other thing is the second or the other two days a week?
- [99:12]
Caller
Yeah. So starting in the fall. Our daughter is of preschool age, and so we were just trying to figure out I. It was a bad idea to pay for her to go to a private.
- [99:23]
Dave Ramsey
If she does, if she's there, does that reduce your cost of the babysitter in the house?
- [99:30]
Caller
No, it does not. Because it would be Tuesday, Thursday, and those are the days that I'm home.
- [99:35]
Ken Coleman
Oh, well, I wouldn't do it. I've heard enough. For me, if it was my personal income in this situation, I would not be paying that money. No, not in baby steps. Have two. Dave, am I right or wrong?
- [99:46]
Dave Ramsey
I don't have a problem either way. It's probably not a deal breaker either way, but yeah, your daughter's already gone from home as a four year old while you're at work the other days, and then you're at home and you're gonna send her away from home too, into preschool? I don't think this. Well, I'm already catching hell. Okay. Having raised three that became successful, the things that they learned when they were in preschool did not enter into it. Them becoming successful, it's not that big a deal. Okay. And so, you know, you can make it. You can make it. And so. And the differences for some of the rest of you in one grade, one through six, one school versus another, assuming the school is not just an absolute hell hole that's dangerous and teaches nothing. But if you've got a reasonably good elementary school, the differences in that and the one that's $100,000 a year is it's not worth the bang, it's not worth the cost. And the differences in whether those kids become successful is not based on where they went to elevation School, and it's sure not based on where they went to Mother's Day out. And so, no, I'm not going to do it on that basis. The child is not going to be held back. She's not. A developmental delay because of this or an educational deficit because of this.
- [101:23]
Ken Coleman
Yeah. I'll kind of fill in the last piece that I'm hearing here, Brittany, because I'm not that far removed from my wife working full time and we had three kids. So as a nurse and I know that nursing, many of the nursing positions are very, very intense. So if you're asking us from a, hey, on those two days when I'm off, I need a little me time. I think that's fine. But I would again, I would employ the person who's watching the child on the other days for maybe a portion of it. You have some dedicated time for yourself on those two days off. If that's something that is part of this decision, I think that makes sense and it's healthy. But I can also say, as a guy who sent off his oldest to college last year, I got another one leaving in the nest. This goes fast. And the old saying that the days are long and the years are short are really, really true. And if you can still be healthy having that time with her before she heads off to elementary school, man, it's going to be here before you know it. I would maximize that. That's just me. No wrong decision here, but maybe some food for thought.
- [102:27]
Dave Ramsey
Yeah. So the bottom line of all of that, Brittany, is it doesn't matter. You do what you want to do.
- [102:31]
Ken Coleman
That's right.
- [102:32]
Dave Ramsey
I mean, you're not going to mess up your kid either way and you're really not going to destroy your debt snowball either way. But what we don't want to do during, and I don't think this falls in that category, or we would sell you because we're pretty mean about it. What we don't want to do when we're in baby step two is buy luxury items, things that aren't needed. And this is kind of on the bubble. And you know what bothers me about it is the way you phrased it, honestly, start the whole thing off like this is a private school to discussion and it's a two day a week Mother's Day drop off. So, you know, it's not like we're having a decision between Harvard and, you know, the University of Mississippi. That's not what we're looking at here. Okay, so I felt that too.
- [103:16]
Ken Coleman
And this is not in any way a slight on you, Brittany, but you know what? Sometimes we make decisions like this because everyone else is doing it. I'm not saying that's the case, but it can. A lot of times we talk ourselves into things that make sense because other people are doing it.
- [103:32]
Dave Ramsey
Yeah. Yeah, and it's. Yeah, it's a bubble. I mean, who you run around with and all your kids, all your buddies got a four year old and they're all going to air quotes. Private school.
- [103:42]
Ken Coleman
I'll bet you the school she's thinking about, it's got some nice shine to it.
- [103:45]
Dave Ramsey
Air. Guaranteed some air.
- [103:48]
Ken Coleman
It's the hot place to send the kiddos in their zip code. I'll bet you I could be wrong. Tapping before Dave.
- [103:56]
Dave Ramsey
Struggling with prestige out of a four year old.
- [104:30]
Caller
Listen up, guys, because I've got a big question for you. Where will you be with your money at the end of 2026? Will you be better off, worse or exactly the same? Believe it or not, you get to choose. Look, I know there's a lot going on that can make you feel powerless over your. Your money. But I want you to hear me. You're more in control than you think. You can turn your finances around. So let me help you out. Start your year off with me and Dave Ramsey at our free EveryDollar live stream event on January 8th. We're cutting through all the lies and all the chaos out there that's keeping you stuck so you have the clarity you need to finally get ahead. And you could even win $2,000 just for signing up. Listen, another year is gonna pass anyway. So decide that this is the year you're gonna take back control and your money. Go sign up for the free live stream@everydollar.com live stream.
- [105:39]
Dave Ramsey
Hey, are you staying on track with the baby steps? Take a quick quiz to check your progress and you can get a personalized plan for you as well. Simply head to the show notes, click the link. Are you on track with the baby steps? And complete the quick free quiz and we'll help you build a personalized plan and get you moving. It's what we're here for. Carly's in West Virginia. Hey, Carly. What's up?
- [106:02]
Caller
Hi, Dave. Hi, Ken. Happy to be talking to you. Thanks for taking my question.
- [106:05]
Dave Ramsey
Sure.
- [106:07]
Caller
My question's about life insurance. So my husband and I. No, we need more life insurance. We're trying to figure out how to do that. So right now, through a company sponsored plan, we have a term life policy that is seven times my income and five times his that you pay for or they give. Well, Yes, I pay 40. We pay $45 a month for it.
- [106:32]
Dave Ramsey
Okay. All right.
- [106:34]
Caller
And so I'm trying to determine to fill that gap to the 10 to 12. And because this is through my employer, should I be looking? Should we be looking for a private policy for the full 10 to 12.
- [106:48]
Dave Ramsey
I probably would. And let me talk you through why. Okay. Just a couple of variables. Just go to, like, zanderinsurance.com, they've been with us for 35 years almost, and they'll shop a bazillion companies, get you the best price for what you're paying. I'm going to guess and say you might be able to get that price. I don't think you're getting that great a deal. That's thing one. Okay. Thing two is when you leave your company. And you will.
- [107:14]
Caller
Yep.
- [107:15]
Dave Ramsey
Okay. You'll get fired.
- [107:16]
Caller
That's my concern. Like if I, you know, if you.
- [107:19]
Dave Ramsey
Had a diabetes diagnosis and a year later left the company, you can't get insurance.
- [107:26]
Caller
Yeah.
- [107:27]
Dave Ramsey
And because these insurance policies are not portable, they don't go with you.
- [107:30]
Caller
You.
- [107:31]
Dave Ramsey
And so you can get trapped with a negative diagnosis and then an exit and not have insurance. And that always bothers me. So I look at. I want to have the biscuit, the meat of the thing, so to speak. The main piece, be my private insurance through Zander. And then if I've got some through work, that's if it's a good deal. When you flesh it out and you want to keep it, it's kind of the gravy on the biscuit. It's a little extra. Extra.
- [107:59]
Caller
Okay.
- [108:00]
Dave Ramsey
But because, good news, it doesn't cost much. But I don't. I don't know that that policy is that great a deal. How old are you guys?
- [108:08]
Caller
I am 32 and my husband's 27.
- [108:12]
Dave Ramsey
Okay. And what do you. What's your incomes?
- [108:17]
Caller
I'm at 160 and he's about 80. And we have one child who's almost 2.
- [108:24]
Dave Ramsey
Okay. Are either one of you overweight or smoke?
- [108:27]
Caller
No.
- [108:28]
Dave Ramsey
Okay. Well, you got a good amount of insurance because your income's higher than I was guessing. Okay. So you got good incomes. Congratulations. Yeah, I don't know. You just run the numbers against it. You'll either keep it as. As semi. Supplemental. So in other words, I might do. If it's a great deal and you want to keep it, Instead of doing 10 to 12 with Xander, I might. I might do 6 to 8 with Zander. Right.
- [108:53]
Caller
Okay.
- [108:54]
Dave Ramsey
And just say, okay, it's a little bit supplemental and it's a little bit there. But if I leave, I'm not stuck that way. And it's not the base, it's not the foundation of my insurance plan. It's just part of the Plan. Because when you count on employer life insurance only, you can really get stung. Based on what I was just telling.
- [109:11]
Ken Coleman
You and Dave was using gravy and a biscuit as metaphor. If you want a good life insurance rate, stay away from the biscuit in the gravy.
- [109:19]
Dave Ramsey
Ken. Thank you, Dave.
- [109:21]
Ken Coleman
Just I've got to bring some practicality every once in a while. What you say you're not plain enough, you're not clear enough.
- [109:27]
Dave Ramsey
It's true. Because you know if you eat enough biscuits and gravy, you'll have to have a biscuit ectomy.
- [109:32]
Ken Coleman
While you were doing that and while you do a biscuit. Oh, I love a good.
- [109:36]
Dave Ramsey
That'll screw up your insurance rates.
- [109:38]
Ken Coleman
That's.
- [109:38]
Dave Ramsey
What's the point. Biscuit ectomies. If that's on your medical record, it's a problem. There it is. Larry's in Florida. Hey, Larry.
- [109:47]
Caller
Hi, Dave. Thanks for taking my. Call me the exception to Dave's rule of borrowing money. And then here's the deal. I'll give you a quick scenario. 73. I watch the 70. We're Snowbirds. We have 1.4 in liquid assets. 50,000 of it. Sorry, 1.4 that's in pre tax. And then another 50, that's emergency fund. Everything's paid off up north. We live in Michigan. House worth about 275 up there, that's paid off. So the condo that we've been staying in in Florida for the last five or six years, a perfect one for us, has come up for sale. And I can actually close on it this week, tomorrow, today, whatever. And I'm looking at. My question to you is do you think it's wise to pull out 300, the condos, 360. Pull out the entire amount out of the pre tax. And of course I would incur a 20%.
- [110:51]
Dave Ramsey
Yes.
- [110:51]
Caller
Tax as well.
- [110:52]
Dave Ramsey
Absolutely.
- [110:53]
Caller
That's a smart way to.
- [110:54]
Dave Ramsey
It's not a 20% tax. It's tax on 360. It's an ordinary income tax rate on 360. But yeah, I definitely would pay taxes on it. It's not 20% is the withholding on it. But that's not. Not accurate. So yeah, yes, I definitely. That's why you've saved this money. You don't want to go be 73 years old and have a beach condo with a stupid payment on it. No, no, I wouldn't do that. I definitely wouldn't do that. I'd pay cash or wouldn't buy it. Of course, the other question is, are you going to Keep the place up north if you are, then let's slow down a little bit on the purchase and get the other place sold and roll that 275 into it because there's no tax on that. But if you're keeping the house up and you're still going to start snowbird it then that up north and that's cool, no problem. I just take it out of that. Yeah. So you got a million dollars left in your 401k and you got, you know, a million dollars in real estate now. Okay. Oh darn. I hate it when that happens. Well done. No, I'm not paying. Yes, I'm going to pay some taxes to not have any debt. Absolutely. That's why we got here and how we got here. Spencer's in Wisconsin. Hey Spencer.
- [111:56]
Caller
Hey, Dave, thanks for taking my call.
- [111:58]
Dave Ramsey
Sure. How can we help?
- [111:59]
Caller
Hey, I'm 28 years old and I have $750,000 of debt and I have no debt on any cars or anything like that. That's my home mortgage. And then I'm a farmer. I bought a chunk of land, so.
- [112:20]
Dave Ramsey
Okay, so how much is your house? How much is the debt on your home?
- [112:24]
Caller
There's about 350,000 left on that.
- [112:27]
Dave Ramsey
Okay. And so you got about 450 on the land.
- [112:32]
Caller
400 on land? Yep.
- [112:34]
Dave Ramsey
And 400 on land. I'm sorry. Yeah. Okay. And you're a full time farmer. That's what you do for a living, correct?
- [112:40]
Caller
Yep, with my dad and my grandpa. Okay.
- [112:43]
Dave Ramsey
And that's your only debt? You don't have any equipment debt?
- [112:49]
Caller
No, no equipment debt or anything.
- [112:51]
Dave Ramsey
What do you farm? What are you farming?
- [112:55]
Caller
Corn, soybeans and wheat. We're cash crop farmers and then we do a lot of trucking too.
- [112:59]
Dave Ramsey
Good. So what do you make in a year?
- [113:02]
Caller
I personally make about $80,000 of personal income. And then this year we made about $30,000 from the farm. That should make the payments for the next year.
- [113:20]
Dave Ramsey
How many acres? How many acres is the 400? It only yielded $30,000 worth of profit?
- [113:25]
Caller
Well, no, 30,000 of profit. Yeah, it was about. It's 76 acres of workable land and it yielded about 200 bushels to the acre.
- [113:39]
Dave Ramsey
Wow.
- [113:40]
Caller
And corn is about four dollars. About pretty bad price this year. But that's just how.
- [113:44]
Dave Ramsey
Of course. Yeah. Okay.
- [113:48]
Ken Coleman
On a good year, I'm curious, on a good year with corn prices, what would that number be or what has it been? What's the best year that you can recall?
- [113:57]
Caller
The best year is probably that I can remember, I'm only 28, so. But we had a. During COVID there, we had about $7 a bushel for corn.
- [114:07]
Dave Ramsey
Wow. So. But what would that make you that at 78 acres or some 6 acres?
- [114:16]
Caller
76 times 200. That'd be about a hundred thousand or something.
- [114:26]
Dave Ramsey
Okay. All right.
- [114:27]
Caller
Almost double.
- [114:28]
Dave Ramsey
Yeah. Okay. Or more than double. Okay. Yeah. All right. Because you got. Listen. Yeah. You're just trying to get a return on investment. It's a business transaction. There's a lot of romance in farm and an extreme amount of hard work in farming. But people romantically forget to do the math because you don't want to make 30,000 on a $400,000 investment. And do all the hard work means you're making a dollar an hour for backbreaking labor. That's a bad rate of return on your money. But if that's not the average year, then we have to work into that and see. So. And if you're getting it paid off by doing that, you end up with the asset clear. That's another part to enter into the equation. So I think you can struggle through this and get there. When you're tired of feeling stuck with money, there's just one to get different results, you have to do something different. No one accidentally wins with money. You have to have a game plan. And that begins with our get started assessment. Go to ramseysolutions.com start, answer some questions, and we'll show you what steps to take next. Don't stay stuck. Take control of your money. Starting today, go with ramseysolutions.com stuck heart. Our scripture of the day, Ephesians 6:11. Put on the full armor of God so that you can take your stand against the devil's schemes. Ribbon McIntyre said, Be different. Stand out and work your butt off. Well, sounds good, Reba. I like that. All right. Kim is in Chicago. Hey, Kim. How are you?
- [116:33]
Caller
I'm good. How are you?
- [116:34]
Dave Ramsey
Better than I deserve. What's up in your world?
- [116:38]
Caller
Well, my son is gonna come into a settlement when he turns 18 in April, and it's $70,000, and I'm looking for advice on what he should do with it. He wants to buy car, but he's also going to be signing up. He's going to sign up for the marines and about October. So he's only going to be here a short time before he goes away to boot camp. So trying to figure out what the right decision is for him.
- [117:05]
Dave Ramsey
Yeah. Okay. And how old is he?
- [117:09]
Caller
17. He'll be 18 in April. And that's when he'll get the settlement.
- [117:12]
Dave Ramsey
Okay, what's the settlement from?
- [117:15]
Caller
He was hit by a car when he was on the bicycle.
- [117:18]
Dave Ramsey
Wow. Is he okay?
- [117:20]
Caller
He's okay, yeah. It's been just about a year. So he's, he's fully recovered and it's, you know, been in an account in the bank until he turns 18. So he's anxiously awaiting it to buy himself a car because right now he's sharing with. With mom.
- [117:35]
Dave Ramsey
Okay, so you're a single mom?
- [117:38]
Caller
I'm a single mom, yes.
- [117:39]
Dave Ramsey
Okay. All right. And he doesn't have a car and he's 17. It's in the bank.
- [117:45]
Caller
Right.
- [117:45]
Dave Ramsey
Is there any reason he can't buy a car with it now if you let him?
- [117:51]
Caller
Because he can't. It's not to be touched until he's 18. I mean, we can go and petition the judge for it.
- [117:56]
Dave Ramsey
Oh, okay. But that'd be the only way. Okay, all right.
- [117:59]
Caller
It's the only way. Right.
- [118:00]
Dave Ramsey
Okay. All right. You're a good mom. Well, here's the thing. You and I know he's getting ready to park the car and if I'm, if he's a normal 17 year old American male, he wants a really nice car that's way too expensive and he's about to screw up. Right.
- [118:23]
Caller
He wants a Honda Civic. Okay, but how new that he's, he's open ended on, but I'm thinking, I'm.
- [118:32]
Dave Ramsey
Thinking five to $10,000.
- [118:34]
Caller
Okay, that's what I was thinking as well.
- [118:37]
Dave Ramsey
Okay. And if it parks and sits there and rots down, his life does not end. But if he goes and blows 70 grand on a car, I'm gonna kill him.
- [118:45]
Caller
Oh, no, that would never happen.
- [118:47]
Dave Ramsey
Well, I don't know. He's 18 and it's his money and you know, only you and I can talk him out of it. Right. So. Because I guarantee he's got some people telling him to do that. Don't you?
- [118:57]
Caller
I'm afraid of that, yeah.
- [118:59]
Dave Ramsey
They're called stupid friends we all have.
- [119:01]
Caller
Right, Right.
- [119:02]
Dave Ramsey
Especially when you're 17. You have them. There's lots of them around when you're. You're 17.
- [119:07]
Caller
Right.
- [119:08]
Dave Ramsey
I'm glad that you have the influence with him that you hope you do and you think you do. And I hope you can talk him out of the tree on this because it sounds like you are. It sounds like you've got a good foothold on persuading him. And I think you're being wise, and I hope he will because here's the thing that remaining $60,000, if he leaves it alone and he comes on out as a Marine and he starts. Is very wise with his income there and get careful, he could get a really, really good start in life.
- [119:38]
Caller
That's what I'm hoping. And with that rest of that money, do you think he should, you know, put it in a high yield savings?
- [119:44]
Dave Ramsey
That would be fine. That would be fine. If you want to put it away even longer, you could sit down with a smartvestor pro and park some of it in some mutual funds, but don't plan on touching it for five years. If you do that, you can, but I wouldn't. But if you could, that would be ideal. Just forget you have. Have would be ideal, right? Put it in a mutual fund and forget you have it. And look up at 24 marrying your sweetheart and the 50 has turned into 150 and you can use it for a down payment on a house.
- [120:14]
Caller
That's what my hopes are for him.
- [120:16]
Dave Ramsey
That's what I would do with it. If it was mine.
- [120:19]
Ken Coleman
Yeah. I'm sitting here thinking, what would I do if I were you, I would.
- [120:23]
Dave Ramsey
Show him that example.
- [120:25]
Ken Coleman
This is what I do to my kids. It drives them crazy. But I'm a question guy by trade. I would ask him, so what else involved with a brand new Marine who goes off and got a car? Start asking a million questions. Now just asking the questions will irritate him, which is great because what you want to do is mild irritation and make him think through is this thing more trouble? Because you and Dave are talking and you're like, oh, he's going to park it. But he's not thinking that I would. And I'm playing. When I say irritate, I don't mean really provoke the kid. I just mean make him consider what is he going to do with this car? And if he's parking it where, where you live, make him confront that. If he's got to take it with him and ship it, whatever, I would just walk. Make him walk through all of that. And you might be able to deter this by not suggesting but by asking. I would try it because I'm with you.
- [121:16]
Dave Ramsey
I would rather be okay to not buy a car.
- [121:18]
Ken Coleman
That's what I'm getting.
- [121:19]
Dave Ramsey
If you're going straight into boot camp, that'd be okay. Yeah, it wouldn't be the end of the world. But I was just trying to scratch his itch. And if I scratch it with five grand and keep him from blowing 70, I'm on target.
- [121:28]
Ken Coleman
You know, what did you say you tried it?
- [121:30]
Caller
I tried to tell him it's not necessary. We can still share. He's got a 15 year old brother and his point that'll be 16 when he goes in the Marines. And he said, well then he can just use it when I'm gone because he thinks that it's a burden for me to have to drive them all around everywhere since it's just me and he's like, and he can help you out.
- [121:49]
Ken Coleman
Well, here's the deal. I did a quick search while Dave was talking to you. There are some decent Honda Civics in that 5 to $7,000 range. So if you can help him stay in that range, then I think that scratches his itch but also keeps his money where it needs to be.
- [122:03]
Dave Ramsey
Yeah. And then. But sell the dream of what happens to the other 60,000 bucks, that's going to turn into 160 for a good down payment when he's 24 or whatever the numbers end up being. But I mean this is the mature thing to do with it, which is very hard to do when you're immature when you're not old. Hard to do when you're old, but it's not as hard when you're old as it was when you were young. Christian Kristen is next in San Jose. Hey Kristen, what's up?
- [122:35]
Caller
Hi. I have a question about purchasing a house versus remodeling. We've been planning a remodel for the past year and just found out from kind of a couple of contractors that now at this point the remodel is going to be double what we want to pay, which means we'd be way over building for our neighborhood the same time. I'm finding this out from contractors. My dad has decided to move from Southern California up to be closer to us because my mom has passed in this past year and he just want, we're kind of his last closest family and that area. And so we are now considering instead to sell his house, our house, and purchase a new house with an adu so that way he can kind of live on the property with us. This would involve all me, my husband and my dad's name all being on the mortgage and the title to the home. And I'm just looking for some advice to see if that is a good idea. We would be putting like over 50% down for the price of the home and it would be within our like budget even according to the Ramsey way of deciding for a budget for a house. And so I just want to know if that is a good idea or not.
- [123:46]
Dave Ramsey
Well, there's a lot of downside to it because what you have to do is work through what happens in the event of all the negative possibilities. Okay. A negative relationship evolves. That's a problem. Okay. Okay. A death evolves. What happens to the half of the house then? What happens to the half if he becomes disabled? Early onset. What happens if something bizarre happened and you all got a divorce? Okay. So no one ever anticipates all the negative things. And the exit strategy from this brilliant idea in the event of all the negative things, we always just look at, oh, this is going to work, and we can put our money together and we got a better house. And. Yeah. So if you work through all of those, probably on paper as a part of a, quote, partnership agreement, unquote. You got siblings?
- [124:43]
Caller
No, I'm an only child.
- [124:45]
Dave Ramsey
Okay, that's. That makes it simpler, doesn't it? You're going to get his half when he dies, right?
- [124:51]
Caller
Yes. And he has been very clear that he's like, the house is already yours due. What you want with it? He just wants to move closer to us in general. And he is elderly, so I do think that.
- [125:03]
Dave Ramsey
How old is he?
- [125:03]
Caller
He would be taking in his, like, mid-70s.
- [125:07]
Dave Ramsey
Okay.
- [125:08]
Caller
And maybe not in the best of hope like you are, but. Yeah.
- [125:13]
Dave Ramsey
Okay. All right. Yeah. I mean, just be careful. It. Just be thinking about what happens with, you know, and really have some good documentation on power of attorney and other stuff in case, like, you know, the one that comes to mind is I've got a friend dealing with early onset right now, and they've got a problem with the ownership of the family business. And the guy that holds the keys is not all there now. So they got a real issue. And that's the kind of stuff you gotta be real careful with and be thinking that through. That puts us how are the Ramsey show in the book, folks will be back with you before you know it. In the meantime, remember, there's ultimately only one way to financial peace, and that's to walk daily with the Prince of Peace, Christ Jesus.