You Can Change Your Life TODAY!

Summary

Podcast Summary: The Ramsey Show – “You Can Change Your Life TODAY!”

Release Date: January 3, 2025
Host: Ramsey Network (Jade Warshaw & Dr. John Deloney)
Description: The Ramsey Show empowers listeners to build wealth and regain control of their lives, regardless of past financial missteps. Hosts Jade Warshaw and Dr. John Deloney, along with a team of experts, address listeners' top financial concerns through live calls and expert advice.

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Introduction

In the episode titled “You Can Change Your Life TODAY!”, hosts Jade Warshaw and Dr. John Deloney kick off the new year with an engaging discussion focused on overcoming financial setbacks and implementing effective money management strategies. The show emphasizes the importance of taking immediate action to improve one’s financial situation, regardless of past mistakes.

Caller Interactions and Financial Advice

1. Mariam Maram from Phoenix, Arizona

Timestamp: [00:00] - [07:10]

Issue:
Mariam shares her struggle with overwhelming debt, including $98,000 in student loans and $60,000 in consumer debt. She discusses her recent bankruptcy filing and the discovery of unexpected medical bills that exacerbated her financial woes.

Discussion:
Mariam reveals that her attempts to manage finances without a car led to excessive spending on rideshare services, totaling nearly $700 per month. Concerned about her safety while using public transportation, she contemplates taking out a subprime car loan.

Notable Quote:
Dr. John Deloney advises, “Your safety is always paramount... If I told you to go into debt to get a car, I would be not a good financial advisor and I would not be a good friend.” ([05:54])

Advice Given:

• Avoid New Loans: Dr. Deloney emphasizes the Ramsey Show’s stance against incurring new debt, especially given Mariam’s existing financial burdens.
• Evaluate Necessities: Instead of a new car loan, consider affordable alternatives like purchasing a reliable yet inexpensive vehicle.
• Debt Management: Focus on eliminating existing debts before considering additional financial commitments.

2. Nicole from Dallas, Texas

Timestamp: [10:04] - [19:44]

Issue:
Nicole and her husband are stuck alternating between Baby Step One and Two due to accumulating medical debt. They face challenges in progressing through the financial steps because of ongoing healthcare expenses related to her husband’s mental health issues and her own post-COVID health complications.

Discussion:
A caller joins the conversation to support Nicole, highlighting the emotional and relational strains caused by financial instability. They discuss strategies to maintain progress despite setbacks.

Notable Quote:
Dr. Deloney states, “If you can't solve a problem while simultaneously creating it... you are just chasing your tail.” ([07:28])

Advice Given:

• Stay Committed: Acknowledge that setbacks are part of the journey and maintain commitment to the financial plan.
• Budget Adjustment: Reassess and adjust the budget to accommodate unexpected expenses without abandoning financial goals.
• Collaboration: Work together as a couple to tackle financial challenges, ensuring both partners are aligned in their efforts.

3. Amanda from Chicago, Illinois

Timestamp: [24:06] - [30:36]

Issue:
Amanda is in a relationship where her boyfriend’s mother lives with them indefinitely, adding financial strain due to her mother’s mental health issues and lack of savings. Additionally, financial disagreements about budgeting create tension in their relationship.

Discussion:
A listener provides perspective, encouraging Amanda to evaluate whether she can align her financial values with her boyfriend’s commitment to his mother. The conversation delves into the importance of shared financial goals and open communication in relationships.

Notable Quote:
The caller advises, “Freedom may look different, but y'all can... sit down and say, what does peace and freedom look like for us?” ([26:30])

Advice Given:

• Value Alignment: Assess whether personal financial values align with those of a partner.
• Open Communication: Engage in honest discussions about financial goals and responsibilities to ensure mutual understanding.
• Decision Making: Consider the long-term implications of financial decisions on the relationship and personal well-being.

4. Sarah from Seattle, Washington

Timestamp: [32:58] - [43:05]

Issue:
Sarah recently finalized her divorce and is navigating child support recalculations. Her lawyer suggested setting up brokerage accounts instead of traditional college funds to prevent her ex-husband from using saved funds to minimize his financial obligations.

Discussion:
A caller provides insights into the ethical considerations of managing child support and education funds, emphasizing the importance of integrity and long-term financial planning for the children's benefit.

Notable Quote:
Dr. Deloney remarks, “If you were worried that you didn't want to save up too much in the 529 because they might not go to school, we could talk about that all day.” ([39:38])

Advice Given:

• Transparent Savings: Utilize established financial vehicles like 529 plans for education savings to maintain clarity and integrity.
• Legal Consultation: Seek advice from financial advisors to ensure that savings strategies are both ethical and legally sound.
• Financial Independence: Protect financial interests by maintaining clear and honest financial records separate from ex-spouse obligations.

5. Drew from Colorado

Timestamp: [65:24] - [74:18]

Issue:
Drew is making significant progress with his finances, having completed emergency funds and paying off his car. However, his fiancé lacks the same financial drive, leading him to question whether to stay focused on his goals or end the relationship to prioritize his financial aspirations.

Discussion:
The hosts discuss the importance of mutual financial goals in relationships and recommend open dialogues to align aspirations, emphasizing that differences in financial motivation can impact long-term relationship success.

Notable Quote:
The caller advises, “Freedom may look different, but y'all can... sit down and say, what does peace and freedom look like for us?” ([70:17])

Advice Given:

• Relationship Alignment: Ensure that both partners share similar financial values and goals to foster a unified approach to money management.
• Communication: Have candid conversations about financial expectations and future aspirations to determine compatibility.
• Personal Focus: Assess whether personal financial goals can coexist harmoniously within the relationship or if adjustments are necessary.

6. Jessica from Atlanta, Georgia

Timestamp: [78:28] - [83:05]

Issue:
Jessica dealt with a debt relief company eight years ago that failed to settle her credit card debt as promised. This unresolved debt continues to negatively impact her credit score, and she seeks advice on how to address the lingering financial obligation.

Discussion:
The hosts guide Jessica through steps to rectify the situation, including contacting the original creditor, negotiating settlements, and ensuring documented agreements to resolve the debt fully.

Notable Quote:
Dr. Deloney emphasizes, “If I were you today, I would 100% downsize this vehicle. 100%.” ([50:36])

Advice Given:

• Contact Creditors: Reach out to the original creditor to clarify the current status of the debt.
• Negotiate Settlements: Offer a lump-sum payment to settle the debt, ensuring that the agreement is documented in writing.
• Monitor Credit: After settlement, verify that the debt is marked as paid in all credit reports to improve credit scores.

7. Kane from Birmingham, Alabama

Timestamp: [76:01] - [83:22]

Issue:
Kane is 18 months away from paying off his mortgage and currently has $140,000 in a high-yield savings account earning 3.8%. He seeks advice on whether to invest this money in the stock market or retain it in his savings account while continuing to pay off his mortgage.

Discussion:
Dr. Deloney advises Kane to maintain his current savings strategy due to the short time frame until his mortgage is paid off, recommending against investing in volatile markets which may not align with his timeline.

Notable Quote:
Dr. Deloney advises, “At that five year and less point, it becomes really volatile and it's not, it's never guaranteed.” ([76:32])

Advice Given:

• Maintain Stability: Keep the funds in the high-yield savings account to preserve capital and ensure liquidity as he approaches mortgage payoff.
• Assess Investment Timing: Consider investing additional funds only after the mortgage is fully paid and if it aligns with long-term financial goals.
• Financial Planning: Continue to adhere to the baby steps, focusing on debt elimination before engaging in higher-risk investments.

Key Insights and Conclusions

• Debt Management: The episode underscores the importance of addressing existing debts before considering new financial commitments. Incurring additional debt without a clear repayment strategy can exacerbate financial instability.

• Budgeting and Financial Tools: Utilizing budgeting apps like EveryDollar is emphasized as an effective method for tracking and managing finances, ensuring that extra funds are allocated towards debt repayment or savings goals.

• Relationship and Financial Alignment: Financial goals and values are critical components of personal relationships. Open communication and mutual understanding are vital for couples to navigate financial challenges together.

• Ethical Financial Practices: Maintaining integrity in financial dealings, especially post-divorce or in custody arrangements, is essential for long-term financial health and personal well-being.

• Emergency Preparedness: Building and maintaining emergency funds provide a safety net that allows individuals and families to handle unexpected expenses without derailing their financial progress.

Notable Quotes

• Dr. John Deloney:
  “Your safety is always paramount... If I told you to go into debt to get a car, I would be not a good financial advisor and I would not be a good friend.” ([05:54])

  “If you can't solve a problem while simultaneously creating it... you are just chasing your tail.” ([07:28])

  “At that five year and less point, it becomes really volatile and it's not, it's never guaranteed.” ([76:32])

• Caller Supporting Nicole:
  “Freedom may look different, but y'all can... sit down and say, what does peace and freedom look like for us?” ([70:17])

• Caller Advising Amanda:
  “Peace may look like different things, but communication and shared values are key to navigating financial challenges together.” ([25:26])

Conclusion

The episode “You Can Change Your Life TODAY!” from The Ramsey Show offers a wealth of practical advice for individuals facing various financial challenges. From managing overwhelming debt and aligning financial goals within relationships to ethical financial practices post-divorce, hosts Jade Warshaw and Dr. John Deloney provide actionable strategies to help listeners regain control of their finances and build a stable financial future. The recurring theme emphasizes the importance of budgeting, debt elimination, and open communication in achieving financial peace and personal well-being.

Transcript

[Jade Warshaw]

Foreign.

[Dr. John Deloney]

Network. It's the Ramsey Show. Hey, it's good to be back with you guys. I'm Jade Warshaw. Next to me is my buddy, Dr. John Deloney. We're hooking you up with answers all hour long, so give us your call. The number is 888-825-5225. Hey, it's the new year, John. We get into it. I'm so excited. I don't know what to do. I haven't hosted the show in a little bit, so I'm excited to get into some calls and help the people, John.

[Caller]

Off the rails on a crazy train. Let's go.

[Dr. John Deloney]

All right, we got Mariam. She's in Phoenix, Arizona. What's going on? Miriam?

[Mariam Maram]

Hi, Good day. It's Mariam Maram.

[Dr. John Deloney]

Okay, thanks for the correction. My bad.

[Caller]

Love it.

[Mariam Maram]

It's okay. It's okay. It's Arabic. Yes. So just quickly, Bob, a chapter. I, Wolf, moved from the south. I'm a southern gal. Moved from the south, June of 2024, out here to Phoenix.

[Dr. John Deloney]

Okay.

[Mariam Maram]

Been to Phoenix one time. August 2021, me and my daughter drove from Atlanta all the way out here to get some solar panels. So it was beautiful. It was like, oh, I never live in Arizona. Ended up purchasing 3.5 acres by law's Grace. So I'm like, whoa, what am I doing out here in Phoenix? I'm about to start Eco Village or whatever.

[Dr. John Deloney]

Wow. Okay.

[Mariam Maram]

Anyway, long story short, because I'm paying off my property, I decided I wasn't going to get a car at first. Turns out when I was getting approved for this duplex that we're in right now, that's when I realized that my debt was. My debt was no longer manageable.

[Dr. John Deloney]

How much?

[Mariam Maram]

I actually didn't see. I filed for travel bankruptcy after. When I was getting approved for this unit, there was something on my credit that I just didn't know about. It was a medical bill that was like 6, $7,000 that added on to what I already had had, which is up to about 60 something thousand of consumer debt.

[Dr. John Deloney]

Got you.

[Mariam Maram]

Outside of student loans, how many student loans? Oh, a lot.

[Caller]

Use. Use real numbers with this. Use real numbers with us.

[Mariam Maram]

Oh, $98,000. And the thing is, I didn't have the degree.

[Dr. John Deloney]

Oh.

[Caller]

So.

[Mariam Maram]

So this is the thing. I didn't consider student loans, actual debt.

[Dr. John Deloney]

A lot of people don't know.

[Mariam Maram]

Well, I genuinely didn't understand it to be actual debt. So when the lady was like, oh, he approved you, but he was hesitant because of all your debt. And I was like, oh, oh, there's still loans. And he was like, yeah.

[Dr. John Deloney]

So you got approved for it. Then what happened?

[Mariam Maram]

I did got approved for it. I got approved for the duplex, but I realized I, I, it was just too much debt.

[Caller]

So how much did you take out for this duplex?

[Mariam Maram]

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

[Jade Warshaw]

No, no, no, no.

[Mariam Maram]

The duplex is getting rented while I pay off my property.

[Dr. John Deloney]

I understand that, but you're on the hook for the loan. Yes. Like you got, you got a mortgage for a duplex and you're renting it out. Is that correct?

[Mariam Maram]

No, no, no, no, no, no, no, no. Like, I'm just renting a duplex. I'm just renting.

[Caller]

How much is your loan for the land that you, that you bought for your eco village?

[Mariam Maram]

It's, it's owner finance.

[Caller]

But how much is finance? I don't care. How much is it?

[Mariam Maram]

I, I still owe about $19,000.

[Caller]

19. Please tell me you didn't file bankruptcy, you didn't bank, you didn't File bankruptcy over $60,000. Plus your student loans. Cuz your student loans aren't dischargeable.

[Mariam Maram]

Well, we're working on that, but that's not, that's neither here nor there. But I do.

[Dr. John Deloney]

Well, tell us what the question is. Tell us so that we can understand.

[Caller]

Yeah, what's the question?

[Mariam Maram]

Yes, the question is about, because it's about a car. So I realized before I was, I have the Every Dollar app. I am, I am here. I'm pushing the movement. I really am. Like, I believe in it, right? Because I was not aware that I was basically spending nearly $700 on Ubers and Lyft to get to work.

[Dr. John Deloney]

Okay.

[Mariam Maram]

And I was like, okay, so I'm paying for a car that I don't have. I was like, this is insane. I was like, okay, I have to take public transit, I have to take the bus, I have to take the rail. Which is really good. Right?

[Dr. John Deloney]

Get to the question so we can actually help you.

[Mariam Maram]

Okay. When is it appropriate to use a loan? Because I know you can get a loan for buying a house, but I hear you, y'all, you know, you're, you tell Mario.

[Dr. John Deloney]

Wait a second. Well, let me answer the question for you. It's never, I'm going to say that it's not ever going to be appropriate to do a loan on this show. We're never going to tell you to go into debt. And the reason for it is because you can already sense the reason why. You've got 98, 000 of student loan debt. 60,000 in consumer debt, 19,000 that you're paying off on land. I don't have to tell you the reason. The reason is it is a shackle on your life.

[Mariam Maram]

And it is, it's about a vehicle.

[Dr. John Deloney]

It's about. I know, I know, I know.

[Mariam Maram]

My safety is in jeopardy. So this morning when I so, because like I was saying, in order for me to take public transit, I have to work overnight. I get off at 5am I was getting off at 5am this morning. I'm walking down the street to. Because my last bus stop, it's about a little bit less than a mile for me to get home. I'm walking down the street, I see this man doing all this kind of movement. So I didn't know about the epidemic of the drug crisis that's going on in Phoenix.

[Dr. John Deloney]

That's right. You're right.

[Mariam Maram]

This man is doing all this crazy body movement. And so as I approach him, I try to like not look at people in their eyes.

[Dr. John Deloney]

I hear you.

[Mariam Maram]

He had a metal mallet. So I'm like, okay, when is it, when, when am I gonna.

[Dr. John Deloney]

Here's what I want you to do.

[Mariam Maram]

When is my safety?

[Dr. John Deloney]

Your safety is always, your safety is always paramount. I'm not going against that. And I've been to Phoenix. I know what you're talking about. I know that area versus very, very well. And you're not wrong. However, you told me before that you were doing lifts, you were doing Ubers, that's how you were getting around. And even though that's expensive, if that's the safer method for you to get around until you can save up and buy yourself a thousand dollar cash car, that's a junker. That's just going to get you where you need to go. That's what you need to do for you. If I told you to go into debt to get a car, I would be not a good financial advisor and I would not be a good friend and I would just be a. That would be the worst advice ever. If I said, yeah, just go take out a car loan because you've got a hundred and eighty thousand dollars of debt.

[Mariam Maram]

Or the consumer debt getting discharged.

[Dr. John Deloney]

No, because. And that's the other problem. We didn't talk to you about your income, but what are you bringing in? What's your income?

[Mariam Maram]

Well, I'm working overtime. I average about 5k monthly net.

[Caller]

But by the way, if, if you just are going through bankruptcy, no bank on planet earth will loan you any money for a car.

[Dr. John Deloney]

That's also true.

[Mariam Maram]

Well, I've already gotten approved for one. I just have to have guarantee it's subpar.

[Caller]

It's a subprime.

[Dr. John Deloney]

Subprime.

[Mariam Maram]

Oh, yeah. And so you. That's okay.

[Dr. John Deloney]

Yeah, yeah, yeah, yeah.

[Caller]

Don't. Yeah, don't. It's like that's like really expensive. It's like you taking like a, like a metal bar and breaking both of your knees so that somebody doesn't hit you in the head. You get what I'm saying? You're just shooting yourself in the other foot.

[Dr. John Deloney]

Yeah. Where we're at. Where we're at. And this is, this is the hardest part to get to because for you, debt has been a crutch. Debt has been the little safety blanket. It's the way that you've, the thing that you've gone to to get everything that you want and you're not realizing the effect that it's having on your life. It's, it's odd to me that you're going through a bankruptcy and yet still you haven't figured out that borrowing money is the problem. I say it all the time. And I'll say it to you too. If, if you, you can't solve a problem while simultaneously creating it, okay. And that's what you're trying to do. You're like, oh, I'm in debt. I'm going to solve it while filing bankruptcy. And in the meantime, I'm going to keep going into debt. And if you keep doing that, you're never going to find a way out. You're going to be a dog chasing its tail. And so you've got to get to the point where you draw a line in the sand and you go, you know what? I may not be able to pay off this debt today, tomorrow, but the first thing the can do today is I can decide I am not borrowing money anymore. And that goes for anybody who's listening. You might not be ready to do the Ramsey steps yet. It might take you a second. I'm fine with that. But today you can decide, I'm not borrowing money. You don't have to keep making it worse. And that is huge. It's a negative, right? It's when, if you can't do the pull up, you do the negative and you can do that today.

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[Dr. John Deloney]

Hey, you listen to the Ramsey Show. I'm Jay Borcha. Next to me, Dr. John Deloney. We're taking your calls all hour long. It's a live show, so get in where you fit in, man. It's a new year, so you're probably facing all sorts of things. If you need help with your life, your money, good mental wellness tips, whatever it is that you're looking for, we're here to help you out. Give us a call, 888-825-5225. Let's go to Nicole. She's in Dallas, Texas. What's going on, Nicole?

[Jade Warshaw]

Hey, thanks for taking my call. I was calling because me and my husband, we've been working the steps for about a year and a half and we're constantly going in a cycle of between baby stepping one and two and a lot of it's medical debt that keeps piling on us that doesn't allow us to move any forward. And I just, I don't know, is there any advice or any help how to like, keep on going? I don't know. We're just kind of losing some faith here.

[Dr. John Deloney]

Who's, who's ill? Is it something that you have a diagnosis and it's causing you to continue to do prescriptions or appointments?

[Jade Warshaw]

It's kind of both of us. My husband's on the spectrum.

[Dr. John Deloney]

Okay.

[Jade Warshaw]

And he, you know, he's, he's bipolar, anxiety and adhd. And so he sees a psychiatrist and has medicine every month. And, and then I, I got us in debt with the film. We tried IVF and it didn't work. So, and then I had long term Covid and so my heart rate would do some things where it just drop and they never could figure out like a name for it or anything. But it was just some effect from COVID Okay.

[Caller]

So, hey, can I. Can I hop in here real quick? Nicole.

[Jade Warshaw]

Yes.

[Caller]

From this point forward, I don't want you to ever say that you got y'all two in debt because of your IVF together. Y'all looked at each other and said, till death do us part. And you knew that he was. He had learning exceptionalities. And you. You knew he was a character, and you married him, right?

[Jade Warshaw]

Correct.

[Caller]

Right. And he also agreed to stand by you when you got sick. Right. And y'all both decided, let's start a family. And you'll have struggled, and you have sat down with doctors, and you've done that together.

[Jade Warshaw]

Yes.

[Caller]

So you're gonna rise together, and you're gonna struggle together, and you're gonna have good days, you're gonna have bad days. But the key is together. And I don't want you carrying around this extra baggage like you've done something irreparable to your family because you got sick or because you explored IVF together. Okay?

[Jade Warshaw]

Thank you.

[Caller]

Because some of that baggage, right, is this. This weight you feel going back and forth between baby step one and you finally get that thousand bucks, and you're like, all right, we got traction, and then suddenly you got to go back to the doctor or your husband needs new meds, or he has a really manic week and he spends extra on something or whatever's going on.

[Jade Warshaw]

Right.

[Caller]

And you both feel like you're the one dragging the other down, and there's no. You got two horses pulling opposite directions on each other. Right. Does that make sense?

[Jade Warshaw]

It does. Yes, it does.

[Caller]

It makes the whole thing. I just want to quit.

[Jade Warshaw]

Yeah.

[Caller]

Because you aren't dealing with a math problem. You are dealing with a heart problem. Right?

[Jade Warshaw]

Yes.

[Caller]

I mean, the math problems. I mean, the math problem sucks. It's. It's that. I mean, there's. There's a math problem. Don't get me wrong there. But, Jay, tell me if I'm wrong. I would tell you if you have baby step one and y'all are working on baby step two, and then you have to go back to baby step one, that tells me that the plan is working, and here's why. It's frustrating and it's super slow, but you didn't go backwards. You didn't end up owing somebody else money. You were able to fund it yourself with your thousand bucks. And now we're back on it again. And now we're back on it again. But I promise you, if you stay on it, you'll gain that one month, that two months, that four, that fifth, that sixth month of traction. Do you get what I'm saying?

[Jade Warshaw]

Okay, yes.

[Caller]

Because think about your life without that baby step one, without that thousand bucks. Y'all are. Y'all are multiple thousand dollars in debt because y'all went backwards every month instead of just getting back to. To square one. You get what I'm saying?

[Jade Warshaw]

Yeah.

[Caller]

So I know it doesn't feel like you're. Like you're winning, you're not winning, but you're not losing. Right. And stalemates are the worst. They're the worst.

[Dr. John Deloney]

Yeah, you're. John is exactly right. You're still going forward because when. When you do push play on baby step two, you're paying off debt for that time period. And then if something happens, you dip into the emergency fund. That's what it's there for. Then you get back on track. You start, you know, you build it back up to a thousand, then you start paying off debt again. It's just that the truth is, certain people's situations are going to cause the baby steps, possibly to elongate, and that's okay. Like, everybody's situation is not the same. You guys have health issues. Everybody. And so be it. For Sam and I, it took us seven and a half years. And so everybody has those nuanced things that are going to cause the baby steps to. You might hang out on one step longer than somebody else does. And it doesn't mean that you're not making progress, and it doesn't mean that you're not going forward. There could be some financial pieces of this to address. We didn't ask you much about your income. Are you. Are you both able to work?

[Caller]

Tell us about that.

[Jade Warshaw]

Yeah, we're. We're both working full time. We probably bring home about 5,500 a week. I mean, I'm sorry. A month?

[Caller]

I was about to say. Dang, Gina, y'all are loaded. 5,500 a week, man.

[Dr. John Deloney]

What kind of work is it?

[Jade Warshaw]

He. He works as a welder, and I work as an auditor for car company.

[Dr. John Deloney]

Okay. Yeah. I mean, there might be some margin that you can find looking at your budget. I'm not sure. You know, do you guys have car payments? Is there something that you can do short term and very quickly? Is it sell off a vehicle so that you can free up some money in your month? Month to month. Right. That. Those are the things I'd be looking at when. When somebody tells me, hey, money is tight, we're having a hard Time going from baby step one to baby step two or whatever it is. The first things I'm looking at, number one, I'm going, okay, are you investing? Because if you're investing, let's pause that, right? That's the first thing to do. So if you haven't paused, you need to pause. The next thing I'm looking at is withholding. If you're a person who's getting a tax refund every single year, that's a signal that you are doing too much withholding, every single paycheck. So I would get with HR at your company and change that. Right. And then the next thing I'm looking at is just basic things. I might do an insurance coverage checkup to make sure I'm getting the right coverage for the right money. Most people do an insurance coverage checkup and they find out they can actually get more coverage for what they're paying or they can pay a little bit less. So those are the top three places that people find money just without having to do anything. Right. And then after that, the next place I'm looking at, vehicle is at your vehicle. So I'm going through, and I'm going, okay, do we have car payments? Is this something that I can sell off? If I sell it, will I make money? If I sell it in my. Upside down, Is there a way that I can get out of this car loan and free up that money every month? So that's the next place I'm looking. So those are really the top four areas. And then after that, it's the basic stuff. It's groceries, it's subscriptions. So really go through your budget with a fine tooth tooth comb and see if you can find some extra money there. Do you have every dollar?

[Jade Warshaw]

We do. We have the basic version.

[Dr. John Deloney]

Okay. And is that working for you?

[Jade Warshaw]

It has shined a light on where we're spending the most money. It looks like we spend a lot in groceries.

[Caller]

And so maybe, like, this is probably the least romantic date in the world, but maybe once a week, you'll have a meal planning week. I mean. I mean, meal planning for the week. And y'all get together on Sunday nights and y'all make dinner together, and you just talk about, what do we want to have for dinner this week? And if you can cook nine chicken breasts for the week and put them in the refrigerator and just have them there for you, is that cool? No. Is it sexy, practical? No. But, man, to get you out of this mess, and I'll tell you this, I'll add a Fifth one to Jade's list. I remember when my wife and I were going through, I sold my beloved handmade Everett guitars from, from a guy out of Atlanta. They're amazing. And I got rid of one of them because it launched us immediately into baby step two.

[Dr. John Deloney]

Wow.

[Caller]

And so if you've got guitars, if you've got a fancy gun, if you've got whatever stuff. Yeah, whatever y'all got your, your Pokemon cards or whatever, if there's something about lightning, a fire in the house that just not a real one, by the way, but like lighting a fire and saying, we are going to make this move right this second. Right. And maybe I've exhausted all that. The other one I would say is, is there one 30 day sprint y'all can go on and just Uber like crazy or just. It would be miserable and awful and I'd hate it. But also you're miserable and awful and you hate it right now not being able to find that thousand bucks. So what if y'all just both said, all right, we're both going to Uber in the mornings or we're going to go both get a job at Burger King or Walmart in the evenings. Just for 30 days, for 60 days and get out of the cycle and then you get some breathing room. And Jade, let me ask you this with folks who are wrestling in this situation. If you know, you have recurring medical. It's not adding extra to that a thousand dollar baby step one, but it is being practical and saying we need to go ahead and start putting a sinking fund.

[Dr. John Deloney]

Sinking funds.

[Caller]

200 bucks a month.

[Dr. John Deloney]

Yeah.

[Caller]

Aside. Because know we're going to spend it.

[Dr. John Deloney]

Yeah. If I were her, I'd go back.

[Caller]

To saying it even.

[Dr. John Deloney]

Yeah. I'd go back on the statements and say, okay, what are we spending? What's the worst month that it's been? And be prepared for that worst month and have it set aside.

[Caller]

I love that. I love that. Hey, we're on your team. We're on your team. Thanks for the call.

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[Dr. John Deloney]

Yeah, you're listening to the Ramsey show on the Ramsey Network. I'm Jade Warshaw. Next to me is Dr. John Deloney. Let me let you in on a little secret. When it comes to your life and your money, you're the only one who can change it, period. No one else can change it for you. And you can't look at someone else's life and money and think that you're going to be able to reach in and change theirs. They have to be wanting to make those changes on their own. And it's frustrating. It's very frustrating. If you're a person who's gotten a hold of the baby steps, it's worked for you. And you look over at your brother or your sister in law or your mom and dad or your best friend and you're like, man, I see them struggling, I really want to help them. And you're trying to get them to do it and they won't do it. Listen, it's one of those things.

[Caller]

The worst.

[Dr. John Deloney]

It's the worst. It's truly the worst. And I have found that the best way to broach a subject or whether it's with your spouse or with a friend or family member is just to be like, man, I was listening to this show and here's what helped me, here's what I did. And it's so good, it's so easy. Like for instance, John and I were talking earlier, we were talking about our Christmas break, talking about sleep. And I said, oh man, I got my husband this whoop strap. It's great. And you just talk about it naturally.

[Caller]

Yeah.

[Dr. John Deloney]

As a part of the conversation as opposed to, you know what you need to do, you need to get your money on point. You need to use every dollar. That doesn't work. Right.

[Caller]

But when I showed you my app and said, hey, I got a, I got a sleep score of 100 for the first time and I'm So excited. It's, it's, it's an invitation. Yeah, right. It's not a, it's not a demand.

[Dr. John Deloney]

That's right. We're talking about it like a real part of our lives, like something we're genuinely excited about because we are not as an indictment for what somebody else should be doing. So if you are looking for a way to get yourself under control, every dollar is the way to do it. It's the best way to budget your money. You make a plan, you stick to it. With a monthly budget, it makes it super easy to plan your spending. You can track your transactions, you save for what matters to you most. It's all in this easy to use app that fits in your phone. And what's going to happen is you're going to start making progress, and because of that, you're organically going to want to show other people and you're going to want to be like, man, listen, I got on this budget, it's so easy to use. It's in my pocket. My husband can see it too, or my wife can see it too. And because of it, we found like 400 extra dollars in our budget. That's how this thing works. And so whether it's you or for a friend or a family member, that's how you talk about things. You talk about what's real to you. You don't tell them what they need to be doing. So use every dollar, keep a pulse on your spending, make progress with your money goals, and do that with every dollar. If you don't have it, you can download every dollar for free in the App Store or listen if you have an Android. Go ahead and head over to Google Play. Click the link in the description if you're listening on YouTube or podcast. But whatever you do, get every dollar. Okay, let's go to Amanda. She's in Chicago, Illinois. What's going on? Amanda? Hey, how are you doing? Good, how are you?

[Jade Warshaw]

I'm good. I have a quick question. So my boyfriend and I have been together for about a year, and we're talking about the future. But I have two big reservations. The first is his mom lives with him, and there doesn't seem to be an end in sight. She has some mental health issues, doesn't have any savings, and he feels like it's his responsibility to take care of her. And then the second is we butt heads a lot on finances to your comment. Like, I try to show him how cool, like, budgeting can be or, you know, what's worked for me. And it's always ends up, like, just in World War 3, to put it lightly. So I'm just stuck on. I'm just worried. You know, I think finances are super important for the future, and I, I just worry. So it is. Would be helpful.

[Caller]

Amanda, tell me if I'm wrong, but it sounds like you have your answer. It just is a really tough pill to swallow.

[Jade Warshaw]

It is. It is very tough. So.

[Caller]

And there's. There's nothing, like, there's nothing worse than a decision, especially when it comes to a relationship, whether it's a romantic relationship or a family relationship between, like, you and your mom or your dad or a work relationship where the right thing hurts, but that doesn't make it the wrong thing. Right.

[Jade Warshaw]

Right.

[Caller]

So I, I would say, like, man, good on, good on your boyfriend for feeling a sense of, of, I'm going to take care of my mom. She's going to live with us. That's going to be part of our life. And you as his, like, if you're talking about the future, you get to decide, is this the life I want to sign up for or not? And I don't think, I don't think it makes you a bad person, but it makes you, like, there's going to be a value, a value misalignment. And then when it comes to money, man, you are getting a ringside seat to the rest of your life. And it won't just be about money. It will be about what size house you're going to buy and then what. How many kids you're going to have and do we spank our kids or don't spank our kids? And do we eat organic foods or not? And peanut allergies aren't real. Like, asking me the rest of your life, I care less right now, in your situation, a year into dating, I care less about whether y'all are completely aligned with money, yet I care more. Can you say, hey, this really matters to me. This is important. And the person you're considering spending the rest of your life with says, I want to hear more about what you say is really important to you. They don't go to, like you said, World War Three. You get what I'm saying?

[Dr. John Deloney]

Well, I have a question. Like, I'm going to make an observation. John, correct me if I'm wrong. I've been married for 18 years. The Times I, I don't know that there's ever been a time that Sam and I have been at a complete, like, impasse. Like, I, I 100am not gonna act on or move towards you or what you're saying in any way, and vice versa. That feels. Don't get me wrong, Plenty of times we disagree. Plenty of times we want to go about something a different way. But when there's a complete, I'm not budging in a complete. I'm not budging over here. That's not. That is a red flag for me.

[Caller]

It's a huge red flag.

[Jade Warshaw]

Yeah.

[Caller]

And again, it goes to. It goes to, who are we going to decide to be during moments of conflict? And like Jade says, the couples that last, when they reach those impasses, they lean towards each other. They don't draw lines. Right, Right.

[Jade Warshaw]

Got it. Okay. Right, Right.

[Caller]

And so you tell us, what does this mean for you?

[Jade Warshaw]

Oh, sorry, could you repeat it one more time? Sorry.

[Caller]

I said you. You tell us, what does this mean for you?

[Jade Warshaw]

It's a hard decision. I think. I. I think you. You hit it on the head. Like, I know the decision is just a hard one because I. I do see that. I mean, like, I'm gonna eventually be a reflection of how I solve conflict for kids, should we have them. And I. The way we're doing, it's not great. So, yeah, I've been struggling with it, so. But it's helpful.

[Caller]

I will tell you if. If at this stage you are able to. I don't say non emotionally because. Because that sounds dramatic, but in a. In a non threatened way, if you're able to sit down by yourself or maybe with a trusted friend and truly articulate your values, what's important to you, and you're able to do that, and then be reflective on the person you've been with for a year and say, this man, we are really trying to force a round peg into a square hole. It's not going to work. That's one of the most humbling, heartbreaking, yet brave decisions a person can make, I think.

[Jade Warshaw]

Okay, yeah, because here's the thing.

[Caller]

You go marry this guy tomorrow. This is. These decisions, this situation comes up for the rest of your marriage until there's an explosion, and then at that point, you'll have to choose, are we going to rebuild something? But the rebuilding process starts with how are we going to communicate when we get sideways with each other and we have differing visions on what tomorrow might look like for us.

[Dr. John Deloney]

And there's the mom side of things. Like, you get to decide if you want to get into that or not. It's like marrying a guy who already has a kid. You know, you get to decide, like, if you are are thinking, no, I. I don't want all of that. There's nothing wrong with that. I. I can't.

[Caller]

Like I say, on his side, it doesn't sound like he's telling you, well, this is just for a minute, you know, like. Like, I still want. He's not stringing you along. It sounds like he's saying, no, no, my mom struggles. My mom's gonna be with me forever.

[Jade Warshaw]

Right, right.

[Caller]

And the way you phrased it is he's not living with her, she's living with him. Right. He's in the caretaker role.

[Jade Warshaw]

Yeah, yeah. He hasn't.

[Mariam Maram]

I don't want him.

[Jade Warshaw]

Like, I. I feel like the bad guy for being like, hey, like, let's get her on her feet. Let's see if we can, you know? But, yeah, yeah.

[Dr. John Deloney]

That puts you in a tough position, too, because you don't want to be the one that's like, trying to scooter out the door so you can. You know what I mean? That's tough. That's a hard place to be in.

[Caller]

Well, and he. And he'll. He might look at you and say, hey, I've been with her for 25 years. You've got. You've got nine months with her. Relax. I know, right? And also, maybe he's an enmeshed mess. Right. The thing she needs. But again, that goes back to the conflict challenges. If conflict ends in World War 3 on a regular basis on something as simple as, hey, what if we just lived on less than we make?

[Dr. John Deloney]

Right, Right, Right.

[Caller]

Just basic. Yeah. It's a recipe. Man. I'm heartbroken for you. I'm heartbroken for you.

[Dr. John Deloney]

You've got to be able to see that the problem is the problem. And you both gang up on the problem.

[Caller]

That's right.

[Dr. John Deloney]

Not you both ganging up on each other. Once you figure that out, things get a lot better. This is the Ramsey Show.

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[Dr. John Deloney]

You're listening to the Ramsey show on the Ramsey Network. I'm Jade Warshaw. Next to me, number one best selling author Dr. John DeLoney, host of the Dr. John DeLoney show, which is really quite the phenomenon, I must say.

[Caller]

John, you're a phenomenon, Jade Warchief.

[Dr. John Deloney]

Well, anyway, hey, if you like the shows that you listen to on the Ramsey network, whether it be this one or many of the others that we have to offer, be sure that you're liking it. Subscribing to it, sharing it with other people, that means a lot to us. It's something that you can do that's really quick, doesn't take you any time, doesn't cost you anything. But ultimately it does a lot for us. It helps other people to discover the show and that is big. We're all about life change here. And the way that we change people's lives is getting in front of them. And so if you can do that, like I said, like subscribe, share, do that for us in the new year and we'll be so appreciative to you. We already are, but that's a big help. All right, John, we're taking calls all this hour. We got a few left. We got Sarah here from Seattle, Washington. What's going on, Sarah?

[Jade Warshaw]

Hey, thanks for having me on. So my divorce finalized about three years ago. About a year ago, started doing a child support recalculation and it finally just wrapped up. But during that process, my lawyer suggested that instead of setting up college funds for my kids because of the dishonesty displayed by my ex husband about his finances, that I set up basically brokerage accounts for my girls and in my head earmark them as college funds so that when the Time comes to pay for college, he. My ex can't say, well, Sarah has already saved money for college. I shouldn't have to contribute as much. Is there a disadvantage or advantage in doing it that way versus a traditional college fund?

[Dr. John Deloney]

I. I'm not sure that I understand. I. I'm not sure I understand what your lawyer is saying.

[Caller]

I. I got it. Well, okay, but it sounds like your lawyer. Yes, like. So the answer is in this. In the sketchy sense, yes, you're correct.

[Dr. John Deloney]

Because you're saying you can say that money was for something else if it's in a brokerage.

[Jade Warshaw]

Well, so. So no. And it would be just earmarked in my head as their college fund.

[Dr. John Deloney]

Sure.

[Jade Warshaw]

What my lawyer's fear was that, let's say, both of my girls go to school, and for both of them, it'll cost $100,000. Right? 100,000 each. And they're young, so if I start saving the money now, by the time they get to college, I may have 75,000 for each of them. So then there's only 25,000 left to cover. My ex could potentially say in the future. Well, Farah's always paid 75 or saved up that much. I should only have to pay half of what's left. So then he would only contribute 12,500, give or take.

[Caller]

So, listen, he's your attorney's exactly right. That could happen. Can I give you an alternative side to it?

[Jade Warshaw]

Sure.

[Caller]

And this is me. I get to be on a high horse here because you called into the show. Okay, so this is definitely me on a high horse. And I'm not in your seat. Okay.

[Jade Warshaw]

Yeah.

[Caller]

Y'all are sitting around a table, you and your attorney. And you and your attorney's job is to protect you. You are his or her client. Right. That's their job. And you're dealing with a person who lacks integrity on the other side of the table, which is your ex husband.

[Jade Warshaw]

Correct.

[Caller]

I hesitate to suggest that you also become a person who maybe doesn't lack integrity, but is not full integris and comes up with alternative ways to hold and shield money to put you in a better argumentative position in case Something might happen 15 years from now. What I would prefer. And this, again, this is not a ROI cash wise. And this is me mostly working with people who are struggling with their integrity for my whole career. So I get it. I would rather look my daughters in the eye and say, I saved up $75,000 and husband's taking us to court. Your. Your dad's taking us to court to try to figure out how little he has to pay. But we did the right thing. You get what I'm saying? Because what it sounds like is you're being encouraged to hide money.

[Dr. John Deloney]

I don't like that.

[Caller]

From your ex. In case your ex wants to use your cash holding or your college fund as a way to pay less in the future. And that's technically right. If this guy's a scumbag, which it sounds like he is, if he would weaponize your daughter's education to make a point with you and your, and your, your former marriage, that would have been almost two decades old at this point. But if that's who he is, that's who he is. But it's not about him. It's about you.

[Jade Warshaw]

Okay?

[Caller]

Do you get what I'm saying? You get what I'm saying?

[Jade Warshaw]

No, it totally does, and it makes a lot of sense. And I, throughout this whole process, have basically used Dave's phrase of this is my stupid tax. And maybe this is just a continuation of my stupid tax and the stupid tax.

[Caller]

I mean, but let's hold it another way. Let's, let's not frame this one as a stupid tax. Let's frame this one as a, come hell or high water, somebody else is not going to impact my integrity. And that might mean, girls, we're going to a different school because your dad's not helping with this. And this is the best I could do over 15 years. Okay, but that's different than, ooh, look, there's some gamesmanship and maybe that you, you get what I'm saying? And by the way, I do.

[Dr. John Deloney]

Yeah.

[Caller]

15 years from now is, what is that a lot? 4, 8, 12. That's two and a half presidents from now. Good God Almighty. Can you imagine two and a half presidents ago, what the world was like, who knows, 15 years from now? I'm certainly not, but, but again, that's, I mean, that's the decision you in the mirror are going to have to make on this one.

[Jade Warshaw]

Okay. And that, that makes a lot of sense. I just, I don't want to become.

[Caller]

The monster that I'm trying to shield my kids from.

[Jade Warshaw]

Yeah, I hadn't thought about the non quantifiable aspect of it. I was more thinking about, like, tax implications and, and obviously making having him pay a portion, a reasonable portion. But looking at it from the non quantifiable part, it definitely sways the decision of I'm going to keep my side of the street clean.

[Caller]

I, I, it feels right. Jade, am I Crazy.

[Dr. John Deloney]

Yeah. I didn't like the fact it feels a little bit dishonest at what you're trying. It's like you're trying to show that I don't really have this money if really. If in fact I really did. And that's the part that bothers me. If you had just called up and said, hey, what's better for me? A 529 or a brokerage, we could talk about that all day, and we could talk about the pros and cons of it. If you were worried that you didn't want to save up too much in the 529 because they might not go to school, like, we could talk about that all day. So for me, it's a little bit the why behind the what that's making me go. Let's. Let's just save up for your kids college the right way and not be super concerned about what he might or might not try to do in 15 years.

[Caller]

Yeah, the keeping your side of the street clean just sounds outside of just an outright abusive situation that you got to do what you got to do, what you got to do, what you got to do, man, I don't know. It just gives me more peace. And again, I. It's so much easier. I'm just sitting on the other side of a microphone, right. Talking to you across the country, you know, it's so much easier for me to do that. But I love the idea of you walk into this new season of your life. I mean, you're 36 months in, right. You're three years in. I love the idea of you walking. And like, you hear the phrase that Rachel Cruz says, often more is caught than taught. Your daughters are going to get a ringside seat to what it's like watching their mother scratch and claw and do the next right thing always. And that to me, is worth any college. I mean, y'all figure you're going to figure out the college stuff, your daughters are going to figure out the college stuff, but that you. I mean, you can't get that in a classroom. You get that from watching a mom and dad or, or a mother or a single mom go day in and day out do the next right thing. And I just. I don't know. That just. That just feels right to me.

[Dr. John Deloney]

Yeah.

[Jade Warshaw]

And I. I appreciate that also, like, little other outside of this, but, like, I do a lot of home repair myself because I can't afford to pay somebody. And my girls will tell people, my mommy can fix things, my mommy can build things. And yeah, I, I, yes.

[Caller]

And, and, and I have a wife whose dad taught her how to grill. Nothing has shamed me more as a Texas male than a wife that can out grill me. And so like even to the point that I am taking grilling lessons even this old in my, in my mid-40s.

[Dr. John Deloney]

Right.

[Caller]

So I'll say is let your daughters come alongside you and let them learn how to fix stuff too. And this is generational stuff, right? But this is where the lesson, this is where family trees are changed in this, in the shadows, in these hard, dark seasons. Man, I'm proud of you. I'm proud of you.

[Dr. John Deloney]

All right, that does it for this hour of the show. Be sure to join us next hour. It'll be Dr. John and myself. We'll see you then.

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[Dr. John Deloney]

From the Ramsey Network. It's the Ramsey Show. Hey, we're glad to be with you. Happy New Year. I'm Jade Warshaw. Next to me is Dr. John DeLoney. We're happy to be here with you guys is the live show. So if you want to get on, you got to get in where you fit in. Give us a call. The number is 888825 5225. We'll get you on the line as long as you're not crazy. We got phone screeners for that. All right, let's get into it. We got Andrea. Andrea.

[Caller]

Andrea.

[Dr. John Deloney]

I'm going to say all different ways. Tell us what's the right way. From Columbia, South Carolina, It's Andrea.

[Caller]

But I answer to pretty much anything.

[Dr. John Deloney]

Okay, well, I want to say it right. Andrea.

[Caller]

I do, too. I have some really mean friends growing up, so I answer to all the names. Names.

[Dr. John Deloney]

I think about that on the Devil Wears Prada. Is her name Andrea. Andrea.

[Caller]

We watch different movies. Jada.

[Dr. John Deloney]

I'm sorry. I'm sorry. Moving on.

[Caller]

I went. I went to kindergarten with an Andrea, and my name is Andrea. So my kindergarten teachers taught us very early on how to properly and kindly correct people.

[Dr. John Deloney]

Andrea. It's like auntie or auntie.

[Caller]

Are you still friends with Andrea?

I have not seen her in years and years and years.

The way you said her name suggested y'all did not get along. Super.

[Dr. John Deloney]

Because there's only one. There can only be one.

[Caller]

No, no, she's fine. But there is only one Andrea.

[Mariam Maram]

Okay.

[Dr. John Deloney]

That's what I'm talking about, and you're it. How can we help you today, Andrea?

[Caller]

The world can't handle more than one of me. So I was introduced to Financial Peace University through my church years ago, and it's really the first time I ever sat down and budgeted anything at all. And I attempted. I. I recognized things I needed to do. I recently started listening to podcasts and found the Ramsey show, and it's like an addiction. I absolutely love listening to it. As I'm listening to it. I got the Every Dollar Budget app, and I have been using that, which is phenomenal for me. There's that word phenomena again. Yeah. But it. Instead of using the envelope system, which did not work well for me, the Every Dollar budget is fantastic.

[Dr. John Deloney]

Great.

[Caller]

So here's. Here's my question. What do I do with the leftover money at the end of the month? Like, let's say my entertainment, my fun money, and even my transportation is left over. And I tried to build in. Like, I know I have dentist appointment coming in February, and my out of pocket for my. My dental X rays, because I have to have that once a year, is going to be roughly over $200. That's my out of pocket.

[Dr. John Deloney]

And you can't cash flow. It changes my answer. It depends on if you can. Because if you said to me, hey, listen, every month, whenever I have extra money or for instance in January, I'll have extra in transportation and I'll have Extra here. I would normally say, yeah, any extra money that you have in your budget, you roll it over to whatever baby step you're on. So if you're on baby step two and you're like, yeah, I, I thought I was going to have, you know, a thousand to pay on debt, but because of these extra little tidbits that I had extra, now I have, you know, 1200. Perfect. Now if you tell me, though. But Jade, on February, I'm going to have this $200x ray bill. And, and I can't. It's, it's not. If, if I do that, plus my normal budgeted stuff, I won't have enough, then I'd say, yeah, you need to hold that aside and keep it.

[Caller]

Now, when you say hold it aside, I'm talking physically. Do I leave it in my checking account? Do I move it? And I want to. I don't have a. I hear y'all talk about a high, high yield interest, high yield savings account. I don't have one of those. I have just a checking and a little savings account.

[Jade Warshaw]

Yeah.

[Caller]

And I do have my thousand in that. I, you know, I'm working. My consumer debt is student loans and car, and I'm in the process of purchasing my home. So I do have money. I could cash flow it, but do I just leave it sitting in my checking account and ignore it or do I move it into the savings account so that I don't spend it?

[Dr. John Deloney]

Well, if you're telling me that you have the cash flow and you can cash flow it, then we're using the money for whatever baby step you're on. So what baby step are you on? Sounds like baby step two.

[Caller]

Yes.

[Dr. John Deloney]

Okay, then let's say at the end of the month you go through and every dollar tells you, wow, you had $20 left on transportation, you had $8 left over here, whatever that is, throw it towards your debt and then it's not a thing of having to move it out or transfer it over. Now let's pretend you were on because somebody else is listening to this. Let's pretend you're on baby step 3B and you're saving for a down payment and you say, okay, I have leftovers. Then you might transfer it to the high yield savings account or wherever it is that you're keeping those savings. I love this question is very practical and this is the stuff that I think really matters on the day to day. Yeah. Hopefully that clarifies it.

[Caller]

Let me throw two things at you, Andrea.

Yes, please.

Okay, number one, please, please Please. Well, tell me this. How much do you owe on student loans?

19,000. Oh, get this, though. I've retired from public school teaching, and I still owe $19,000.

I know.

Now. Now I'm. I'm only 53, and I retired because public school just was a horrible situation. And I. I was practicing my. Hi, welcome to Walmart, can I help you Skills? Because I was looking. I was looking forward to that, but a friend says, hey, so and so school is hiring. Why don't you apply? And I was like, are you serious, y'all? I'm in love.

[Dr. John Deloney]

Good.

[Caller]

So I'm drawing my retirement from the state, as well as a paycheck from my new position. And I'm making pretty much the same amount that I was as a teacher in the public school system.

Okay, so how much do you own your car?

Please don't hate me for this one.

I don't hate you, but I may laugh at you.

About 31,000. Please don't tell me to sell it. I keep totaling my cars, y'all.

Then you definitely shouldn't be driving cars.

[Dr. John Deloney]

Oh, wait, it's not.

[Caller]

It's not new. It's a 2021, but it's. It's that. And then the more I listen to y'all, I'm going, oh, my God. But how do you find a dependable use? Y'all keep talking about these beater cars.

[Dr. John Deloney]

Let me tell you something right now.

[Caller]

You'Re talking to the wrong two people.

[Dr. John Deloney]

Andrea, Andrea, Just. Just. Just for. For us, tell us your income, exact numbers, because I'm. I'm gonna make this a black and white for you. What's your income?

[Caller]

$5,560 monthly.

[Dr. John Deloney]

What's your yearly income?

[Caller]

Take home.

[Dr. John Deloney]

Oh.

[Caller]

Multiply that by 12 for me and tell me.

[Dr. John Deloney]

Okay, so you're around 60,000. You're right at the line. We usually say that we don't want anything with a motor in it. Vehicles being more than half of your yearly take home. Now there's that, and you're right on the line. Plus the fact that you've got debt and you're talking to us about, you know, trying to make the most of your money. Trying to make the most of your extra money. You've got $19,000 of student loans. If I were in your shoes Today, I would 100% downsize this vehicle. 100%.

[Sponsor]

Especially.

[Dr. John Deloney]

Especially if you have a bad habit of wrecking your cars.

[Caller]

And by April. By April, I would have. You are holding on to this student loan like it's Like a. Like a. Like my daughter used to hold her blanket. Like you love it.

[Dr. John Deloney]

When did you take it out?

[Caller]

How. How hard is it to, like, sell a car? And. And I even go in and looking at dealerships and trying to find a decent car.

[Dr. John Deloney]

Andrea, the job that you do, you.

[Caller]

Work with kids, create humans. Yo.

[Dr. John Deloney]

And you're telling us, right, and you're telling us that selling a car and buying a new car is hard. Hard. What you do when you work in the school system as a teacher, you do way harder work than that every single day. You're finding excuses right now because you want to keep this car. It's not that difficult. Go on Kelly Blue Book, find out how much it's worth and get. Get a buddy who's done it before and hope that they'll help you walk through it. Somebody you know has sold a car and they'll help you through it. This is the Ramsey Show. Hey, guys, this is Jade Warshaw. Listen, I get it. The student loan situation is bananas. But it's time to make progress, not excuses. So if your payment and interest rate have you treading water, refinancing could be the solution for you. Look, if I were in your shoes, I would contact Laurel Road today and get a free 30 minute consultation. You'll work with a student loan expert and you'll go over your refinancing options. Hey, for refinancing to make sense, you've got to check certain boxes, like making a good income. And bottom line, Ramsey's advice is that you only refinance if you can get a lower rate or a shorter term. Remember, the point is to pay off debt faster. Maybe you just need to keep rocking the debt snowball. But if refinancing does make sense for you, Laurel Road offers low competitive rates and interest rate discounts are available for stuff like autopay. Listen, you can't mess around with student loans. If you want them gone, you gotta go hard. So go to LaurelRoad.com Ramsey to find out more and schedule your free 30 minute consultation. That's LaurelRoad.com Ramsey. Laurel Road is a brand of Key Bank National Association.

[Sponsor]

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 confidence. You'll find calculators, start to finish guides, a podcast, and even an in depth video course hosted by yours truly. What's not to love? So if you're ready to take the next steps toward your home goals, go to Ramsey Solutions.com Real Estate. That's Ramsey Solutions.com Real Estate.

[Dr. John Deloney]

Happy New Year. You're listening to the Ramsey show on the Ramsey Network. I'm Jade Warshaw. Next to me, Dr. John Deloney taking your calls this hour talking about your life, your money, your relationships, your careers, just your general well being. I mean, money touches everything. So that's what we're talking about. Matter of fact, we just launched a very cool tour that really speaks to all of this. We just launched a brand new tour. It's Dr. John DeLoney along with Dave Ramsey and we're hitting the road, coming to a city near you and it's the money and relationships tour. So this is really cool, you guys, John, you guys are kind of putting a new twist on these live events and tell us more about it.

[Caller]

Yeah, it's, it's every, every stop is going to be different. So Dave and I speak all over the country and we're going to show up, but usually when we do that, we're telling people what we, we want to talk about.

[Dr. John Deloney]

Right.

[Caller]

And this one's gonna be different. Everyone in the audience before the show is going to get to vote on what they want to hear about. And Dave and I will both be on stage for the whole night. It's just going to be a wild.

[Dr. John Deloney]

That's really cool. You know what I think of when.

[Caller]

The unhinged evening, I think of America's.

[Dr. John Deloney]

Funniest Home Videos where you have a little thing and you lock in your vote.

[Caller]

That's exactly it. Is it like exactly y. And then you've been on stage with Dave. You never really know where we're going to go, what's going to happen. And I tend to think things are funny that he doesn't think is funny. So I think it's going to be a fun, fun adventure of a night. Man, I can't wait. I'm looking for nervous about much and I'm, I'm, I can get pretty nervous about this.

[Dr. John Deloney]

I mean, you could be talking about anything, whether it's budgeting, relationship, everything from.

[Caller]

Sex and intimacy to marriage to dating to, and getting Dave Ramsey's dating tips will be legend to wealth building to invest, investing and all, all of it. Everything in between.

[Dr. John Deloney]

Love this. Okay, so this is coming to A city near you. We've got a lot on the list. We've got Louisville, Durham, Atlanta, Phoenix, Fort Worth, Kansas City. Get in where you fit in. Join Dr. I keep wanting to say Dr. Dave Ramsey. That is not right. Dave Ramsey and Dr. John DeLoney, live and in person for a night where you'll laugh, learn, and change your life. Get tickets to the Money and relationships [e-mail] slash tour. And if you're tuning in on YouTube or podcast, you can go ahead and click the link in the show notes. That's how it works. All right, let's go back to the phone lines. We've got Helen in Orlando, Florida. What's up, Helen?

[Jade Warshaw]

Hi, how are you? Thanks for taking my call.

[Dr. John Deloney]

Yeah.

[Jade Warshaw]

So just a quick recap of me. I'm a single mom to four boys, one with special needs, and I have 23,000 in unsecured debt, 65,000 in school loans, and have a mortgage of 260. I don't have a car payment. And my goal is to, you know, pay everything off and do what I need to do. The kickback is I'm a single mom and I only make 58,000 a year. And I've heard on the show and you know, in other podcasts and things like that that the best way to get out of debt is to make more money. One of the wonderful things that I actually took the job I right now, because I'm able to work remotely from home, I don't have to do extra, you know, payouts with having the kids in daycare, somebody coming home to watch my children. So it's been a blessing. But at the same time, I feel like I don't know the other steps to do. I have, I just got the book, I downloaded the app and I started like putting my numbers in a few weeks ago, but I just feel like, oh my gosh, am I ever going to get it? What are, what should I do? Should I sacrifice because I could get a better paying job?

[Dr. John Deloney]

What would that mean that would take.

[Jade Warshaw]

Me away from my kids?

[Dr. John Deloney]

Would that mean daycare? What would that mean financially? Because you got to count that cost.

[Jade Warshaw]

Yes, exactly. So right now when I'm looking at the cost, it's better for me to stay in my job. It's consistent. I have my, my, you know, I have the income I need and I'm also home when the boys get home. And also for like summer or winter vacations, I'm able to be here and they're here.

[Dr. John Deloney]

Yeah, I don't know, there's a part of this now you get to make the choice. Now, if you told me, hey, Jade, there's another job I can take, I'll earn more to the point where it would out earn any other child care and it'd be worth it for me. And if you told me that, I'd be like, say less like, let's go. But in this case, if you're telling me, hey, I might make more on paper, but once I add in the new child care fees that I'd have, then it's no longer worth it, then that's a real discussion. And at that point, it doesn't really make sense. There is a part of this and John, feel free to, feel free to chime in. There comes a point for all of us and it'll be at a different point where we've done all the things we can do, right? You've cut your budget as much as you can cut it. You've added as much extra income as you can add and you've, you know, sold as many things as you can sell. And your income at that point is your income and your margin is your margin. And you take that horse to the old town road and you ride till you can't. No, more like that. That is it. And you just have to ride out the time frame at that point. And that's not fun. Especially when you've been kind of getting high off of finding other things to sell and other ways to add money and other. And it's like you're able to create this excitement about it. But when those switches turn off and you're like, well, here I am, this is my margin. Then you're like, you're just left with the time frame. And that is a very real feeling of like, oh, crap, you know, this three year, here it is for three years. Now, the good side of that is whatever that time frame is, you don't know what's going to happen in that time frame. You could find another opportunity. You could, you know, have something come in your lap that gives you the opportunity to bring in more money in some form or fashion. But if for right now, that's where you are, there is a part of that where you go, okay, I have 500 extra dollars that I throw out this debt every single month. And I'm gonna do my part. And as long as I keep doing my part, the debt will tick down. I am going in the right direction. And you're a single mom with four kids, one kid, special needs. You are in A season of life right now, period. And sometimes that is the case. We have people call in here all the time where they go, man, Jade, I've got three kids in daycare or I've got. You know, I'm in the season of life where just everything is expensive and there's not much I can cut. This is where we're at. And sometimes you just have to accept, all right, that's where I'm at. As long as I'm still going forward, I may not be going at the pace that I want to go, but this is probably only temporary, and I have to own where I'm at right now. John.

[Caller]

Helen. What? Where's these four kids? Where's the. Where's their dad?

[Jade Warshaw]

He sees them every other weekend. Okay. Yeah.

[Caller]

How fresh is this divorce?

[Dr. John Deloney]

You still there?

[Caller]

I just lost. You still there? Oh, Helen, you still there?

[Dr. John Deloney]

She's there. She's just broken up. Get. Get to a place where you got some clarity on that cell signal.

[Caller]

Helen, I'm losing you.

[Dr. John Deloney]

Well, we'll try to help you out as best we can. We can't. Really?

[Caller]

Yeah.

[Dr. John Deloney]

If we can get you back, we will.

[Caller]

Let's see if we can get her back, because I'd love to finish this conversation because. Instructive, but often on the heels, Jade, of a divorce, the parent who ends up with the majority of the custody often wants to do the best they can to not quote, unquote, disrupt the. The rest of. Of these kids lives. Right? So I'm going to keep the house the same. I'm going to keep the town the same. I'm going to keep their schools the same. I'm going to keep everything the same, even if it means drowning financially, being at a job, making half of what I could be making somewhere else. Because the idea is I've already. I have so much guilt. I've already blown up their world enough that. That we're going to change that.

[Dr. John Deloney]

I think I can get her back.

[Caller]

Helen. You're back.

[Dr. John Deloney]

Yeah.

[Jade Warshaw]

Yeah, I'm back.

[Caller]

Okay, great. Did you hear what I said? Did that ring true?

[Jade Warshaw]

No, I didn't hear that last part. What was it?

[Caller]

All right, so we're going to be going up to a break here in a minute, but I'm going to hold you over because I think this is an important conversation, but we'll get to it the best we can.

[Jade Warshaw]

Absolutely.

[Caller]

How. How. How fresh is this divorce?

[Jade Warshaw]

It's. We're divorced for seven years. Okay? The paperwork wasn't signed to it until two and a half years ago.

[Caller]

Okay. How much of the world that you live in now is you trying to keep stability for these kids?

[Jade Warshaw]

Oh my gosh, so much.

[Caller]

Okay, so it's a common thing that sometimes we will try to do this thing called stability. Right? We'll try to. I don't disrupt, I don't disrupt their lives at all. I want everything to be calm and cool when reality says their lives have already been pretty disruptive. And so maybe the best thing is to rip the band aid off and go do the next hard, terrifying, scary right thing. Which might mean to move. It might mean to go live with my parents for a year with four kids so that we can get our head above water. It might mean I am going to love this season where I'm home with my kids, but I'm going to work like bananas to get me a second job and maybe I take another full time home job that I do late at night. Or like Jade says, I might just ride this season out. But I want you to not consider disruption an adverse thing right now. You might need to disrupt everything for one year, two year, maybe three years and clean this mess up. And that's the best long term play for peace. Thanks for, thanks for staying with us, Helen. We'll be right back. This show is sponsored by Better Help. Hey, it's that time of year. It's starting to get a little bit colder. It's getting a little bit dark earlier. And sometimes if you're like me, you just want to stay inside and get cozy. And for me, my perfect cozy night is me and all of my family piled under blankets, watching a movie, sitting by the fire, maybe even reading a book. Listen, whatever your perfect night in looks like, sometimes therapy can feel a bit like that. A time when you can settle in, finally, exhale, replenish your energy, and begin to take care of yourself. Therapy is a great way to bring yourself some comfort during the chaos and rush of the holiday season or any other time of year. Taking the time to pause and be mindful is one of the reasons I recommend Better Help. Better help is 100% online therapy with licensed therapists. You can talk with your therapist just about anytime and just about anywhere so it's convenient for your schedule. Just fill out a short online survey to get matched with a therapist and you can switch therapists for no extra cost. Find comfort this December with BetterHelp. Visit betterhelp.com DeLoney to get 10% off your first month. That's BetterHelp. H-E-L-P.com DeLoney hey, guys.

[Dr. John Deloney]

No matter what your goals are in 2025, our New Year's sale has tools and resources you need to get the year started strong with prices starting at just $9.99. Whether you want to make progress with.

[Caller]

Your money, grow in your career, or.

[Dr. John Deloney]

Create a more peaceful life, you can achieve your goals and these books and products can help shop the New Year's sale [e-mail] store. That's ramseysolutions.com store. You're listening to the Ramsey Show. I'm Jade Warshaw. Next to me, my buddy, Dr. John Deloney. We're taking your calls this hour talking about your life, your money, whatever it is that concerns you. Money touches all of that. So give us a call. It's a live show, but until we get to the phone lines, we've got today's question of the day, which is brought to you by why refi? If private student loan debt is taking away your peace of mind and you don't see a way out, you need why refi. Why refi refinances defaulted private student loans that other places won't touch and gives you low fixed rate loans built for you. So go to y refi.com ramsey today. That's the letter y, r, e f y.com/ramsey. Remember, it may not be available in all states.

[Caller]

All right, today's question comes from Drew in Colorado. Drew writes, I've been watching your YouTube channel for a few months now and I've become hyper focused on my finances and my future. I have my starter emergency funds and I'm paying off my car, which is my last debt. I have a plan for how much I want to earn, what type of home I want and how to get there. However, my fiance hasn't shown the same drive or aspiration aspirations. We've talked about why I've become so focused, but over a month has passed and she hasn't raised any finance or future related concerns. Should I stay in focus on myself or should we break up so I can prioritize my goals? Drew first I would say about like take about 30% off, brother, maybe 40% off and just slow the roll laser.

[Dr. John Deloney]

So Terminator 2.

[Caller]

Jay, tell me if, if this sounds familiar. I know I can be a lot. Sometimes when I get pretty, like into something. And my wife has learned, and she learned early on that sometimes when I get super fired up about a thing, she just says, okay, cool. And then I run around like a chicken in the yard balking and flapping my wings and then a month or two later, I'm like, are you gonna go out to eat? Right? So. Or whatever my thing is. Right.

[Dr. John Deloney]

Microplastics.

[Caller]

That's microplastics.

[Dr. John Deloney]

Dude.

[Caller]

We gotta get rid of everything. She's like, all right. There was a season when we were newlyweds, when I was, like, I was doing. I had kept these long spreadsheets. I didn't have a lot of friends, but, like, These n equals 1. Experiments with diets. And so she would literally, at the beginning of the month, she'd be like, what are we this month? And I'd be like, we're raw vegan. And she's like, oh, the worst.

[Dr. John Deloney]

That's the hardest.

[Caller]

Wow. It was. Yeah. So. But I would do all these different full keto this month. Anyway, she just let me run. And when I read this, I. I see a guy who found us on YouTube.

[Dr. John Deloney]

Yeah.

[Caller]

It wouldn't surprise me. Maybe I'm wrong. Drew, if you found several cool things to rabbit hole down on YouTube, we just happen to be one of them. I love that you picked us.

[Dr. John Deloney]

I do, too. Yeah.

[Caller]

And you have seen the light. And you're like, man, I want to do this for me. And then you say, I have a plan for how much I want to earn, what time of home I want and how I'm going to get there. And you are not in the. In the world with a fiance. Of where you are planning your job, your home, you're planning the life y'all want to have, the world y'all gonna create. And so it sounds like you've gotten really excited. And you have announced to this person who is deciding whether to hitch her wagon to you forever and you to her, and you're telling her how things are going to go, where you're going to live, what you're going to do. And she's like, I'm gonna sit over and have my coffee.

[Dr. John Deloney]

She's writing her own letter somewhere.

[Caller]

Yes, she is. Exactly. Yes, exactly. Just a different YouTube channel. Right. So I don't know, Jade. I like, should I stay in focus on myself before or should we break up?

[Dr. John Deloney]

Listen, it's only been a month. He said only. Well, he said over a month, which makes me think it's like 31 days or like 32 days. Sam and I were having the same conversation this morning. We were talking about somebody. Somebody commented on something I wrote on social media, and we were talking about that. And the context is, you know, we're big on if you are following the Ramsey plan, whether it's the baby steps or, you know, whatever it is that we teach here, and you're married or you're about to be married, it's very important for you guys to be on the same page. I subscribe to that. I 100% believe that it's important to be on the same page. However, there's a part of that where a lot of us have told ourselves that that happens instantly. And it takes a long time. It takes a long time. Like, what Sam and I were saying Is we were two people who were, what I would say, 100% aligned, and it still took us a long time to just do the things the right way and not try to find workarounds and not try, like, so the point in this is it's only been a month and you're not married. So she's probably also still deciding how she fits into this, who she is here. I wouldn't just cut it off right there at the knees. I would. It takes time for people to go, oh, I was doing something this way, and I was okay with what I was doing. You're suggesting something new. Let me get my head around that. I'm not saying no. Help me understand it. What is this going to mean for me? And I've also found, John, that I'm. I'm treading lightly here. I've also found that Cannonball dude different, like, depending on your. Your time of life. Like, the things that I did when I was single and could just flip a switch and be like, I'm doing it. Like, like you said, raw, vegan, you know, and I'm going in. And then it's like, okay, now I get married, and it's a little bit harder, but still somewhat easy. Now Sam and I are the ones doing it. Then you add kids. Then you add a 9 to 5 job. Then you add, you know, the more layers you add, what I find is the more you stop and think, okay, what's this going to mean for me?

[Caller]

Because. Because everything's a trade. Everything's a trade. Yes.

[Dr. John Deloney]

And so I say all that to say it's not a light switch. Changing how you handle your money, for you is emotional and for the people connected to you is emotional, and they're going to have to go through that journey and they're going to have to do whatever rounds that you did, and it might take them longer. It doesn't mean they're not going to get there.

[Caller]

Right. You know, so, Jay, we. Probably the most common question I've received over the last five years of Doing the show is this. Is this question is, how do I get my partner on board in some shape, form, or fashion? That question. I always think it's worth getting beneath the plan. The Ramsey way. Getting beneath that.

[Dr. John Deloney]

Right.

[Caller]

And except in cases of extreme pathology, somebody's not well or somebody is just a jerk or whatever. The two words that I've seen resonate the most have been the words peace and. Or the word freedom. And if you drew, watch YouTube and the light switch came on. Oh, dude. I grew up in a house where my parents were stressed about money all the time. And I don't want that for my life. I'm gonna become my own bank. I'm going to get an emergency fund. I'm not going to owe anybody anything. Then what you really want in your life is peace. What you really want in your life is free. Nobody will tell me and my family what we're going to do. Then you sit down with your fiance and say, what does peace look like to you? What does freedom look like to you? And what you may find is. And I just had this conversation recently with a family that's very wealthy. They won't pay off their mortgage. And one of them said their dad, who's elderly at this point, was adamant you never pay off your house. And it was one of those old. It was an old, like, rule of life. Right. But it wasn't just a math problem there. It was. My dad was real successful. But on this one thing, I'm gonna have to go against my right. So it had a lot of layers to it.

[Dr. John Deloney]

Yes.

[Caller]

And so all I have to say is freedom may be look different, but y'all can. And everyone wants to have that conversation about what does peace in our home feel like? And she may look at you and say, peace feels like you getting off YouTube sometimes. Listen, peace feels like you not coming at me with a new workout plan and a new money plan and a new diet plan, and that's just me as my house. Right. But like, a new thing every month, peace might feel like. So, Drew, don't break up with her. Unless. Unless this is. Unless this is already going to happen anyway, and you have a fiance now. You're not focusing on yourself. You. You're beginning to focus on the world y'all are going to create together. So. And by the way, you are focusing on yourself. But y'all know what I mean underneath that, sit down and say, okay. Say we get married a year in. What does freedom look like for us? What does peace look like for us? And by the way, sorry for just beating you over the head with my YouTube channel stuff. Right.

[Dr. John Deloney]

Yeah.

[Caller]

Instead of inviting you in. Yeah. So that's just what I would think.

[Dr. John Deloney]

Yeah. You. You just. I. I think you have to have space for her to be her and you to be you and whatever clicked for him watching that is not necessarily going to hit the same nerve for her, and he's got to find what that nerve is.

[Caller]

That's right.

[Dr. John Deloney]

And, yeah, I mean, I'm just looking at the sentence over and over. However, my fiance hasn't shown the same driver aspirations. Listen, there are certain things if Sam Warshaw is talking to me about. I'm like, this is the most boring topic ever, and I have zero interest in what you're telling me right now. But because I love you, I'm going to listen and I'm probably going to act like I'm interested. But you're going to have to find a way to get me interested in this.

[Caller]

When I start talking about track split times in the US four by four, my wife's eyes roll in the back of your head. I'm like, you realize that split time. She's like, you realize how little I care.

[Dr. John Deloney]

Yeah.

[Caller]

It's just part of it, right?

[Dr. John Deloney]

It's part of it. My husband used to try to make me watch this show on Netflix. It was like, called Abstract or something. And I literally told him, I said, this is the most boring show in history. Please don't make me watch it. He's like, jade, I promise you it's good. He hasn't convinced me yet. It's a journey. So that's the takeaway.

[Caller]

It's a journey and freedom. Everybody can agree there.

[Dr. John Deloney]

That's right. This is the Ramsey Show.

[Caller]

Hey, what's going on? Happy New Year, everyone. This is my favorite time of the year. January gives me a chance to reset and make intentional choices. And I like to break down big dreams into small, practical goals. Instead of trying to do everything all at once, I create new systems and I create a simple roadmap of what I'm going to do next. The EveryDollar budgeting app helps you do the same thing. Making a budget is a great starting point to help you break down your big money goals into smaller steps. The EveryDollar app even has a goal setting feature to help you stay on Track. I believe 2025 is going to be your year. Picture yourself 12 months from now looking at your budget, and you're proud of yourself. Imagine that feeling. Figure out what must be true to get there and Go map out an amazing year with every dollar. Today, download it in the App store for free.

[Dr. John Deloney]

All right. You're listening to the Ramsey Show. Thanks for hanging out with us. I'm Jade Warshaw. Next to me, my colleague and good buddy, Dr. John Deloney taking your calls this hour. Triple 882-55-2225 is the number. This is a live show, so if you want to call in, do it now. Hey, I also want to mention to you guys that the third hour of the show continues on in the Ramsey network app. So if you don't have the Ramsey network app, you need to download it today, especially if you want to watch the rest of the show. You can do that by going into the App store. You can do that by clicking the show notes, and of course, Google plays where you go if you're an Android user. So that's where I want you to go. That's what I want you to understand at the end of this hour. So let's go to the phone lines. We've got Kane, who's in Birmingham, Alabama. What's up, Kane?

[Caller]

Hey, good afternoon, guys.

[Jade Warshaw]

You better talk to y'all.

[Dr. John Deloney]

Yeah. How can we help you today?

[Jade Warshaw]

So I have a.

[Caller]

My question is, I have 18 more.

[Jade Warshaw]

Months until I pay my house off.

[Caller]

And I have all my money in a high yield savings account, which is $140,000 drawing 3.8%.

[Dr. John Deloney]

Okay.

[Jade Warshaw]

I was just wondering, while I continued.

[Caller]

To say to pay my house off.

[Jade Warshaw]

Should I put it and the stock.

[Caller]

Market or leave it in the high.

[Jade Warshaw]

Yield savings account, only drawing 3.80%.

[Dr. John Deloney]

Such a good question. Yeah, I would leave it exactly where it's at. It's only drawing 3.8%. But for the time, I mean, that's pretty much guaranteed, you're not going to lose money. And since you have such a low, it's a short tail on this. You said 18 months. I would definitely leave it there. We found that kind of the five year point and more is where we might say, okay, yeah, you could invest it. If you said, hey, I think I'm going to be doing this in the next five to seven years, I'd say, okay, yeah, like drop it in an index fund, in a brokerage account, that'd be fine. But kind of that five year and less point, it becomes really volatile and it's not, it's never guaranteed. But at that five year or less mark, there's a very good chance of not really knowing what will have happened with that money. And so for that reason, I would say Leave it exactly where it's at. I'm really proud of you to have a paid off home.

[Jade Warshaw]

Thank you.

[Dr. John Deloney]

Really, really good. How long have you been doing the steps?

[Jade Warshaw]

I guess since I was, like, 22.

[Caller]

But I didn't know I was doing the steps. I found Dave Ramsey, like, four years ago, and I was doing the steps already.

[Dr. John Deloney]

That's good.

[Caller]

Just because I came from, like, a childhood of not having any money.

[Dr. John Deloney]

Well, I'm proud of you. Very, very, very good. Very good question. I love it. Paid off home in 18 months.

[Jade Warshaw]

Yeah.

[Caller]

Dude, that's pretty wild. And I love one of my favorite people to meet in this wild world that we live in now, Jade, is when somebody's like, you'll have a whole business that just tells people to live on less than they make. Yeah. Dave Ramsey's got a whole bunch of houses. And you mean you just tell people, pay off your debts and don't borrow money? That's your business? Yep. Over and over, over and over again. So you like Kane from Birmingham's like, yeah, I didn't come for much. I just decided I was going to. It's gonna make some and save it.

[Dr. John Deloney]

Yeah.

[Caller]

And I just love. It's my favorite person. Common sense, man.

[Dr. John Deloney]

Isn't it? It's so good. All right, we got Jessica in Atlanta, Georgia. What's up, Jessica?

[Jade Warshaw]

Hi. Thanks for taking my call.

[Dr. John Deloney]

You bet.

[Jade Warshaw]

Hey. So about seven or eight years ago, I found a debt relief company to help me pay off credit cards to work with the companies. And. And so we set up a plan where I would pay them $1,200 a month for one year, and then that would be enough to pay off all of the cards. So at the end of 12 months, I get a note saying, well, all that money kind of went into a savings account. And then we started working with each creditor, and we couldn't pay this one off. And maybe that was in the fine print, I don't know. But that's not what I was expecting. And I just. At that point, I was mad and just let it go.

[Dr. John Deloney]

So they weren't able to strike a deal for less than what you owed, and so therefore, the money that you had stacked up with them wasn't enough to pay it off, Is that what you're saying?

[Jade Warshaw]

Right, right.

[Dr. John Deloney]

Okay, so.

[Jade Warshaw]

And that was. That was like eight years ago, and no one's ever contacted me about it. But at the same time, my. It shows up on my credit, and so my credit score is really low, even though, I mean, that's it I mean, this is like 13 years old. I just assumed it would, like, drop off.

[Dr. John Deloney]

Why?

[Jade Warshaw]

But I guess I was wrong. That's what I thought. I thought like after seven or eight years, it dropped off.

[Dr. John Deloney]

The, the unpaid debt, you mean?

[Jade Warshaw]

Right.

[Dr. John Deloney]

Well, no, I mean, it's. It's just at that point, really, you're lucky no one's sued you for it. It sounds like you knew about it. I'm just going to be honest. It kind of sounds like you knew that the money was remaining there, it wasn't what you wanted, but you're kind of just hoping it'd go away on its own.

[Jade Warshaw]

Correct.

[Dr. John Deloney]

And it didn't because this thing is eight years old. So how much are we talking about here?

[Jade Warshaw]

Well, they say that it's now 8 7. 8, 73 3.

[Caller]

What was the original tab?

[Jade Warshaw]

I don't know. I don't. I think a little more like 3 or 4000.

[Dr. John Deloney]

So have you tried contacting them? Whoever's holding the stead, have you tried contacting them?

[Jade Warshaw]

Well, that's my issue. Like, I mean, I guess I could call the credit card company, which was Chase. I guess I could call them and say, who has it? I don't think they have it anymore. No, I don't know who has it. I don't know who to negotiate with. I just know I want it gone and whatever I need to do, I know somebody can negotiate that price down.

[Dr. John Deloney]

I mean, somebody is you.

[Caller]

It's you. It's you.

[Dr. John Deloney]

If I'm.

[Jade Warshaw]

Yeah, but I don't.

[Dr. John Deloney]

If I'm you today, you've got a couple pieces of homework. Number one. Yeah. Contact Chase and, and find out, say, who's holding this debt because they've probably sold. Sold it off a long time ago and some debt collectors holding it. The next thing is gather up your money and say, okay, I may not have $8,733, but like offer them 20 or 30 or see what you can get because you're going to be able to settle this. It's so old that you're going to be able to settle this for an amount. And when you do settle it, just make sure you get it in writing and make sure it's completely paid off, that they send you that it's a zero balance. And make sure that you have the money saved up for when you are ready to make that deal. Because they're going to want. When you say, hey, will you make a deal? They're going to want to start that process almost immediately.

[Caller]

Do you have $2,500, cash.

[Jade Warshaw]

Yes.

[Caller]

Okay. I would find out. I would do everything I can to find out who it is. And I'll call him and say, I'll give you $2,500 today, right now. And you're not going to give me your checking account number. Never, ever, ever. But you'll put on a prepaid debit card and you will pay them off. See, I'll give it to you right now if you'll settle this thing in full and you send me something in writing today. You send me a contract offer, $2,500 in writing right now. I'll pay it right this second, and we'll be done. They think they will never see this money. Do what?

[Jade Warshaw]

I need to go get a prepaid credit card.

[Dr. John Deloney]

Now. You get whatever it is. Cinema money order. Once you figure out what the. Like, once you settle on the.

[Caller]

Just don't give them your checking account number.

[Dr. John Deloney]

And just know you're probably gonna have to talk to five or six different bozos before you get to the right one. Because when you call these companies, they're. They. They want to give you the run around, okay? So you're gonna have to really lock in and say, listen, this is all I have. This is all I'm paying. This is eight years old. If you ever expect to get any money, it's today. Like, you're gonna have to lock in like a dog on a bone to get this done.

[Caller]

And they will say mean things about you. They'll talk about your family. They'll talk about your hair color. They'll talk about an old boyfriend you had back in middle school. Though we'll find ways to poke your pressure buttons. They don't think they will ever see this money again. So the fact that you pick up the phone and call and say, I'll give you $2,500 right now. They probably bought this debt for 700 bucks.

[Jade Warshaw]

Yeah.

[Caller]

And so if you offer 13 years old, it is. But here's the other side of it. Here's the other side of it. At some point, you borrowed three or $4,000 from somebody and you said, hey, if you let me have this today, I'll pay you back. So the other part of this is now that you're in a position to pay this off, go pay the debt. Go pay the debt. It's cost you more just on your soul, right? And so if you call them and say, I got cash right now, I'm going to settle it. Let's be done. Make it happen.

[Jade Warshaw]

Okay?

[Caller]

Is that cool? And they're gonna be mean like Jade says. They're gonna, we can't do it. I talked to my manager. He says I can only do it for 6,000. You say, okay, cool, I'm gonna hang up in five, four, three and failure. Hang up. Hang up and then call them right back. And some other person will answer the phone. Somebody will settle that for you. And a buddy of mine says who used to work in collections says, call at the end of the month. And they're, they try to close their books at the end of the month. And so they're more likely to say, okay, let's take it right now. Let's do it right now. Let's do it right now. So just, just some thoughts there. But you settle it.

[Dr. John Deloney]

That's a great way, listen, that's a great way to start the year out is make sure that you're going back, you're taking control of the things in your money that you can take control of. And as a matter of fact, if you want to make sure that you're staying on track with your financial goals, we've got a quiz out there to check your progress. So head out there. It's our get started assessment. It's on the Ramsey head homepage there. So take that assessment if you had it, haven't done it yet. You need to do it now. That does it for this hour of the show. John, thanks for hosting with me, folks in the booth. Thank you so much. We'll see you inside of the Ramsey Network app after this.