You Can't Build Wealth with Financial Chaos Around You

Summary

Podcast Summary: The Ramsey Show
Episode: You Can't Build Wealth with Financial Chaos Around You
Release Date: June 2, 2025
Host: Ken Coleman & Jade Warshaw
Description: The Ramsey Show empowers listeners to build wealth and regain control of their lives, addressing common financial mistakes and challenges with expert advice.

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Introduction

In this episode, hosts Ken Coleman and Jade Warshaw engage with several callers facing diverse financial challenges. The discussion emphasizes the importance of eliminating financial chaos to build sustainable wealth, adhering to Dave Ramsey’s renowned financial principles.

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Carmen from Tampa, Florida: Managing Debt and Family Obligations

[01:24] Carmen calls in seeking advice on a complex financial dilemma involving her brother. She has previously supported her brother by allowing him to move into her home and purchasing a car under her credit. However, facing a reduced family income and the need to purchase a new home, Carmen is pressured by lenders to eliminate her existing debt. Her brother, now financially stable, refuses to assist further.

Notable Quotes:

• Ken Coleman: “[04:34] He's delusional. Your brother's delusional and he's manipulative.”
• Jade Warshaw: “[07:17] And that’s too nice.”

Advice Given:

• Jade Warshaw advises Carmen to reclaim ownership of the car, emphasizing that relinquishing the asset is not a betrayal but a necessary step to stabilize her finances.
• Ken Coleman reinforces the importance of taking control, suggesting that Carmen should seize the car, sell it immediately for its market value (approx. $19,000), and use the proceeds to settle the debt, highlighting the necessity of prioritizing her financial health over familial obligations.

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Jennifer from Sioux Falls: Navigating Life Insurance and Debt

[10:23] Jennifer, a 50-year-old single parent with a husband battling diabetes, seeks guidance on potentially canceling a whole life insurance policy in favor of a term policy. She is grappling with managing ongoing debt while ensuring adequate coverage.

Notable Quotes:

• Jade Warshaw: “[11:49] Yeah. If it doesn't, what if I...?”
• Ken Coleman: “[16:17] The issue is not you getting a flip phone...”

Advice Given:

• Jade Warshaw recommends waiting for the term life insurance to be approved before canceling the whole life policy to avoid losing coverage.
• Ken Coleman emphasizes the importance of maintaining insurance until the new policy is secured, advising Jennifer to continue paying off her debts systematically using the debt snowball method.

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Austin from Peoria, Illinois: Overcoming Financial Manipulation

[44:25] At 19, Austin is living on his grandpa’s farm after moving out. His father demands $2,800 monthly, which Austin disputes as unfair, especially since his father’s income isn't supporting him. After an hour of contentious discussion, Ken Coleman and Jade Warshaw strongly advise Austin to cease payments, asserting that his father’s demands are manipulative and financially detrimental.

Notable Quotes:

• Ken Coleman: “[49:11] Just answer my question. It’s a number. How long have you been sending him $3,000 a month?”
• Jade Warshaw: “[50:05] And you made the first right move by moving out.”

Advice Given:

• The hosts encourage Austin to stop making payments, labeling the arrangement as financially abusive.
• Ken suggests that Austin assertively discontinue payments and move towards financial independence by finding his own residence.

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Jen from Columbus, Ohio: Financial Planning for Special Needs

[22:13] Jen, a single parent of an eight-year-old with a severe genetic condition, seeks advice on managing investments and preparing for future medical expenses. She is contemplating whether to outsource financial planning to a specialist given her complex financial responsibilities.

Notable Quotes:

• Jade Warshaw: “[26:51] And so the biggest point then is just to make sure this is not something you're just handing over...”
• Ken Coleman: “[30:02] I think that is not something you’re just handing over...”

Advice Given:

• Jade Warshaw advises Jen to collaborate closely with her financial planner, ensuring she remains informed and retains control over her investment strategies.
• Ken Coleman emphasizes the importance of building a robust emergency fund and leveraging resources like the Ramsey Investing Hub to make informed investment decisions.

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Anna from Chicago: Balancing Income Discrepancies in Relationships

[34:06] Anna, earning $300,000 annually, is in a relationship with a partner earning $100,000. The significant income disparity creates tension, especially as her partner is a spender while she is conservative with finances. Anna seeks strategies to harmonize their differing financial behaviors.

Notable Quotes:

• Ken Coleman: “[37:52] All right. So we got a lady who is extremely driven...”
• Jade Warshaw: “[38:07] If somebody else doesn't meet it, it doesn't mean that they're not successful...”

Advice Given:

• Ken Coleman suggests that Anna reassess her expectations and values, recognizing that her partner is not less capable but has a different approach to finances.
• Jade Warshaw recommends open communication to understand each other's definitions of success and to establish common financial goals, potentially through premarital counseling.

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Jared from Maryland: Renting vs. Home Buying Decisions

[66:05] Jared questions the advice from some financial coaches advocating for renting over homeownership, especially when renting is often financially unattainable. He seeks clarity on whether investing in home equity or renting is more beneficial.

Notable Quotes:

• Jade Warshaw: “[69:17] That's bananas.”
• Ken Coleman: “[69:27] Be careful what you're watching on social media.”

Advice Given:

• Jade Warshaw emphasizes that financial decisions like renting or buying should be based on individual circumstances, advocating for buying a home only when financially ready.
• Ken Coleman warns against one-size-fits-all advice, urging listeners to evaluate their financial stability and readiness before making housing decisions.

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Mary from Memphis, Tennessee: Tackling Medical Debt

[97:16] Mary, a 78-year-old widow with a recent brain tumor diagnosis, seeks assistance in managing $6,000 of medical debt that has been sent to collections. She is also dealing with her husband's ongoing medical expenses.

Notable Quotes:

• Jade Warshaw: “[100:14] Your priorities are out of balance because he's now said, I’m prioritizing brother...”
• Ken Coleman: “[102:58] And so that’s our point.”

Advice Given:

• Jade Warshaw advises Mary to consolidate and prioritize debt repayment, suggesting settling collection accounts for less than owed and leveraging her emergency fund strategically.
• Ken Coleman emphasizes the importance of redefining family financial priorities and encourages Mary to address debt proactively to regain financial stability.

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Hannah from Raleigh, North Carolina: Overcoming Imposter Syndrome in Career Change

[118:54] Hannah is transitioning to a career as a financial coach but is hindered by imposter syndrome. She seeks guidance on overcoming self-doubt to pursue her new profession confidently.

Notable Quotes:

• Ken Coleman: “[120:03] You are not an imposter.”
• Jade Warshaw: “[123:08] You’ve got the drive.”

Advice Given:

• Ken Coleman dismantles the concept of imposter syndrome, replacing it with actionable steps to gain confidence through training and resilience in prospecting.
• Jade Warshaw encourages Hannah to leverage her unique experiences and storytelling abilities, emphasizing that real-world financial challenges enhance her credibility as a coach.

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Conclusion

Throughout the episode, Ken Coleman and Jade Warshaw provide tailored advice to listeners grappling with debt management, insurance decisions, income disparities in relationships, and career transitions. The overarching theme underscores the necessity of eliminating financial chaos to build a stable and prosperous financial future. Notable emphasis is placed on adhering to the baby steps framework, proactive debt repayment, and maintaining open communication in personal relationships to achieve financial harmony.

Key Takeaways:

• Prioritize Debt Elimination: Address and settle debts systematically to free up income for savings and investments.
• Effective Communication: Open discussions about financial goals and definitions of success are crucial in personal relationships.
• Tailored Financial Strategies: Financial decisions should align with individual circumstances and long-term goals, avoiding one-size-fits-all advice.
• Confidence in Career Transitions: Overcoming self-doubt through training and leveraging unique experiences can facilitate successful career changes.

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Notable Quotes with Timestamps:

• Ken Coleman: “[04:34] He's delusional. Your brother's delusional and he's manipulative.”
• Jade Warshaw: “[07:17] And that’s too nice.”
• Ken Coleman: “[37:52] All right. So we got a lady who is extremely driven...”
• Jade Warshaw: “[66:05] That’s bananas.”
• Ken Coleman: “[69:27] Be careful what you're watching on social media.”
• Ken Coleman: “[120:03] You are not an imposter.”
• Jade Warshaw: “[123:08] You’ve got the drive.”

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This comprehensive summary encapsulates the key discussions, insights, and conclusions from the episode, providing valuable guidance for listeners seeking financial stability and growth amidst personal and financial challenges.

Transcript

[Ken Coleman]

Brought to you by the EveryDollar app. Start budgeting for free today. This is the Ramsey show, where America hangs out to have a conversation about their money, their profession and their relationships. And we're so glad you've joined us alongside the fabulous, incomparable and very fit Jade Warshaw. Ladies and gentlemen, I'm Ken Coleman. Good to be with you. You guns out today.

[Jade Warshaw]

Thank you. I thought when you said fit, I thought you meant like swagged out.

[Ken Coleman]

Well, you take it to what it means.

[Jade Warshaw]

I'll take it.

[Ken Coleman]

I just know that you're on Instagram talking about your workout. I know you're working out. You got a trainer and you show up today with the sleeveless sweater vest and it needs to be called out because you're pulling it off.

[Jade Warshaw]

Thank you. Thank you. It's a little collegiate vibe.

[Ken Coleman]

Yeah. I, on the other hand, will be doing push ups in between segments just to get a little extra pump.

[Jade Warshaw]

Listen, you didn't hear it from me, but Ken Coleman's got a tricep. Telling you.

[Ken Coleman]

Just one, Just one. A single tricep. It's very exciting. 888-255-2225 is the phone number. You can tell we like being together because we enjoy coaching people. And so Jay's going to help you keep the money. I'm going to help you make some money. That's our combo tag team. Today we start off with Carmen in Tampa, Florida. Carmen, how can we help?

[Caller]

Hi. I have a difficult decision to make and I wanted to see if I could get advice.

[Ken Coleman]

You can.

[Caller]

It's a financial decision. Until about four years ago, I helped my brother go through, you know, I helped him move into my home, never charged him anything. And I helped him get a car under my credit that he pays. My financial situation has changed a lot since. And we went from being a family that was making over $400,000 a year to half of that this year because my husband made a change in careers that will end up paying off and it will be a life changing move. But for now, it is not. We had to move and now I need to. We want to purchase a home. But when we went through the process of getting approved, the person that went through our debt said, you need to get rid of this debt and pay it off, among others. And I went to my brother, right now he's fully recovered. It's been four years. He has stocks, he has CDs, he has a full retirement. He makes commissions and is living a good life. And he basically said, no, I'm not Going to take that upon my credit and I'm not going to pay off the car. So I'm in. Have to make the tough decision to either pay it off myself and put it under my name and then repo it and sell it and send him whatever's left off from paying myself back.

[Jade Warshaw]

Or you can't repo it, because if you do that, that's going to destroy your finances.

[Caller]

No, what I'm thinking about is paying it off.

[Jade Warshaw]

How much does it. How much is it?

[Caller]

Is 11,000.

[Jade Warshaw]

Okay. Yeah.

[Caller]

And once it's under my name, going and having a company pick it up because I'll be the owner of the title.

[Jade Warshaw]

How are you going to put it under your name? How is that? Because it's his loan that. That you co signed.

[Caller]

No, it's my loan. No, it's under my name fully.

[Ken Coleman]

Is he driving the car?

[Caller]

Yeah, he drives the car.

[Jade Warshaw]

So it's under your name fully. Just take the car back and paid off now.

[Caller]

Well, it's causing a lot of drift in the family. My mom.

[Jade Warshaw]

It already has.

[Ken Coleman]

Yeah.

[Caller]

For just offering.

[Ken Coleman]

Hold on, Carmen, did you just hear what Jade said?

[Jade Warshaw]

It's our. The damage you're worried about being done has already been done. And so for you, the best thing to say is you asked him, hey, can you pay this? You're driving the car. He said no. So then the only fair thing to do and that's. That's it. You're just doing what's fair. Okay, no problem. I. If you don't want to pay it, that's fine. But the car is in my name and I am willing to pay it. So if I'm paying it, I'm going to take it back in my possession. That is not mean, Carmen. That is not a bad sister. That is just you doing something that is very normal and fair by saying, if I'm paying for a car that's in my name, it. I'm going to be the one owning it and driving.

[Ken Coleman]

He's delusional. Your brother's delusional and he's manipulative.

[Caller]

He. Yeah, that is definitely true because he has the money to pay it off, but he has been making the payments monthly himself.

[Jade Warshaw]

Mm.

[Caller]

So he's like, I want to continue to make payments monthly because I want to.

[Jade Warshaw]

Then he needs to go. Then he needs to go rent a car. He needs to go over to Avis or Thrifty or, you know, dollar and rent a car. Because that's what he's doing. He's paying payments on something that's not in his name that he's never going to own.

[Ken Coleman]

What's the car worth if you were to sell it today?

[Caller]

So I looked up the trade in value.

[Ken Coleman]

Not trading. I'm not interested in trade in. That's always a bad deal. And you don't need to do that. What is the car wor. Worth? Kelly Blue Book today. If you were to sell it.

[Caller]

Private seller, 19,000.

[Ken Coleman]

I. I would go get that car from. From your brother today and sell it instantly, instantaneously.

[Jade Warshaw]

You only. Yeah.

[Caller]

Well.

[Ken Coleman]

Well, what?

[Caller]

He's always made the payment.

[Jade Warshaw]

It doesn't matter.

[Ken Coleman]

It's your freaking car.

[Jade Warshaw]

He rented the car from you. That's what he's been doing.

[Ken Coleman]

It's your car. True or false?

[Caller]

Yes.

[Ken Coleman]

All right, Carmen, let's start all over. I know how the call started, but I want you to tell us how it started. What do you want us to tell you today? Because we told you. And now you're trying to talk. You're trying to debate us. This is your car.

[Caller]

Yeah.

[Ken Coleman]

You want to get. I know I'm right.

[Jade Warshaw]

Because then. All the way. All. All we say then is, okay, just let the guy keep it.

[Ken Coleman]

Yeah.

[Jade Warshaw]

I mean, bye. You know, that's not.

[Caller]

I can't do that. I can't do that.

[Ken Coleman]

Why? Why can't you let him continue in this current arrangement? Tell yourself.

[Caller]

Because. Because I have two kids and they need a home.

[Jade Warshaw]

There you go, sweetheart.

[Ken Coleman]

You know what you are supposed to do. You called us to say, what should I do? And we both are in agreement. You need to go over there today, no drama at all. But make it very clear. Hey, I brought this to you. You said you didn't want to pay it. I'm changing my lifestyle. Here's where we're at financially. This car is an asset. I need it. And I'm. And if you don't want to play ball, I'm going to call the authorities because it's already ugly. You're being ugly about this, little bro, or big bro, whatever his deal is. And I would say I'm taking the possession of the car, and then I'm going to sell it. So at which point he gets to. He gets to decide, oh, whoa, whoa, whoa. I want the car. Then you go. Fine. $11,000. Thank you very much.

[Jade Warshaw]

Yes. And then we can transfer the title.

[Ken Coleman]

It's worth 19. Big Bro, little bro. But I'll give it to you for the fabulous price of $11,000.

[Jade Warshaw]

And that's too nice.

[Ken Coleman]

Well. But I'm trying to make it clear.

[Jade Warshaw]

I know you are. I know you are.

[Ken Coleman]

I don't disagree with you either. If you say, well, pony up, 19 or even 15.

[Jade Warshaw]

Come on now.

[Ken Coleman]

Yeah, I liked it that Jade's negotiating with me. We're negotiating on your behalf, Carmen.

[Caller]

On my behalf.

[Jade Warshaw]

We want you to. We want you to be respected in this. And that's what it boils down to, is this is a disrespectful transaction. And if you let it continue, if you let it continue, he's not just disrespecting you, you're disrespecting yourself at that point.

[Ken Coleman]

I'd like to get him on stage.

[Caller]

Call it abuse.

[Ken Coleman]

It is.

[Caller]

I call it abuse. Because I wish we could third party.

[Ken Coleman]

Call him in right now because I would go, hey, dude, you're treating your sister really poorly. You're showing a real lack of responsibility. And you want your cake and eat it, too. She provided the cake, now you're eating it. And that stop today. So, Carmen, you know what to do. We told you exactly what to do. Now, we didn't say this was going to be fun, but as Jade pointed out momentarily just a moment ago, it's already not fun. So let's go ahead and rip the band aid off and take possession of the car. Sell it, you pocket some cash, and now we're moving forward. Jade, final word on that.

[Jade Warshaw]

The longer this goes on, the worse it gets. So put an end to it today, and maybe you can still salvage the relationship.

[Caller]

You spent years trying to get everything.

[Jade Warshaw]

Just right for your family.

[Caller]

Now you need an easy way to.

[Jade Warshaw]

Make sure your important financial documents are.

[Caller]

As organized as the rest of your house.

[Jade Warshaw]

Well, good news. Nokbox, that's N O K Box, as.

[Caller]

In next of kin box, is a.

[Jade Warshaw]

Complete system that helps you be sure that you leave happy memories, not a.

[Caller]

Mess when you pass away.

[Jade Warshaw]

Knockbox is a simple way to organize.

[Caller]

Important paper and digital documents, IDs, tax returns, insurance policies, estate plans, accounts and.

[Jade Warshaw]

Other personal history in one manageable place. Your family will feel your love in every detail you take care of.

[Caller]

So start taking care of [e-mail] Ramsey.

[Jade Warshaw]

A well organized legacy is a gift to your family. That's nokbox.com Ramsey.

[Ken Coleman]

All right, go to Nicole, who's joining us now in Chicago. Well, Nicole was there. Okay, let me see. We're going to Jennifer, actually, in Sioux Falls. Jennifer, how can we help today?

[Caller]

Hello. Hi. Thanks for taking my call.

[Ken Coleman]

Sure. What's going on?

[Caller]

I have a question. I am 50 years old. My husband has diabetes, had Some medical issues in the past. I was stupid and got a whole life insurance policy that I've had about 20 years now. I did sign up for Zander term life. I'm waiting for paperwork back. In the meantime, I just feel like this whole life thing is cancer and I just want to get rid of it. But I know that may not be the smartest. I'm not sure. I just want to. I want to be done with it. Hopefully, you know, this term life comes back okay. And once I get term life. But if I don't, for whatever reason, because of my age and medical issues, do I hold onto this whole life for two more years until we can save up enough money where we're in a good position and then just dump it? It's only a $250,000 life policy, so. But I'm. I did take a loan out on it, and I am making payments to that for $500 a month, and I just. I just want to be done.

[Jade Warshaw]

Yeah, that's. Yeah, that's how you know it's not. It. You know when you can take out loans on it and you're paying them back to the tune of 500 do dollars a month. Yeah. Wait till. Wait till your term policy comes back. And once that's for sure in place. Yeah. Cancel this. Get out of it. That's what I would do immediately.

[Caller]

Yeah. If it doesn't. What if I. If I don't get my term life insurance because of, you know, I'm considered obese, But I don't see myself as obese. I'm just tall. So the, you know, the calculations are totally off on that.

[Jade Warshaw]

BMI calculations tend to be off the way that they do it. I will say that, and I will agree with you. I don't know what you. You know, I can't comment on that part of it. I will say that obviously it has the ability to increase your premium at the very, very least, for sure.

[Ken Coleman]

But is there anything else other than that that would. That would make you not coverable, or are you saying you would be coverable? It might just be really expensive. What. What. What are you expecting?

[Caller]

I think it'll be okay. It'll just be a little bit more expensive, is my thoughts.

[Ken Coleman]

You're only 50, so. By the way, I'm 50, Jennifer. And I got news for you. You and I are young. All right, let's speak.

[Jade Warshaw]

50 is the new 40.

[Ken Coleman]

Thank you very much. Thank you.

[Jade Warshaw]

Which means I'm 30.

[Ken Coleman]

I knew there was something in it for you.

[Jade Warshaw]

Here's the thing though, truthfully, it doesn't, based on what she's telling us, it doesn't sound like there's any reason you wouldn't get approved. But let's talk about this further because you are 50. Tell us more about your financials. Because the, the goal is to be self insured and to not be carrying these policies, you know, in pur. So what's, what's your financial situation?

[Caller]

Well, I'm on baby step two and this is embarrassing, but I'm on baby step two for the third time. I'm really stupid. Slow learner. I haven't made financially mature.

[Ken Coleman]

Third time's a charm.

[Caller]

I've made some really great decisions in my life. Like my boys, college, if they go to a state school is going to be paid for.

[Jade Warshaw]

Okay, good.

[Caller]

My first one doesn't graduate and for two more years and my second one doesn't graduate until four more years. So the college is good.

[Jade Warshaw]

Good.

[Caller]

We have a hundred, roughly $150,000 left on our house. I just sold my Navigator.

[Jade Warshaw]

Good.

[Caller]

I got rid of that.

[Jade Warshaw]

What else?

[Caller]

About 150,000 a year. My husband works for the state, so between us both, we work about 150. That make about 150,000 take home.

[Jade Warshaw]

And how much debt do you have left in baby step two?

[Caller]

We have $78,000 left.

[Jade Warshaw]

And what kind of debt is that?

[Caller]

Oh, it's, oh my God, it's so embarrassing. A mattress loan that'll be paid off this week. Actually a trip that we paid for for the school. You know, like this world classroom thing that we've been paying on for two years. But we just made the final payment on that credit card debt and that's basically just credit card debt.

[Jade Warshaw]

Have you cut up the credit cards, Jennifer?

[Caller]

Oh yeah, yeah, they're done. They're done. Yep. And we, we got the, the budget thing two months ago. Boy, that's a tough one. We keep changing that and changing it. I'm like, oh my God, I just want to get on top of everything. And the apps on the phone are driving me crazy.

[Jade Warshaw]

What do you mean?

[Caller]

I want a flip phone again because of all the apps and the different things that come out of our account for different things.

[Jade Warshaw]

Okay, it sounds like you need to simplify. Listen, for somebody who's on baby step two, it is all about cutting down that budget and what I'm getting towards. The reason I asked you that is because. Yeah. I want you to get to the point to where you are entering into retirement age here in the next 15 years. And you want to be in a place where you are debt free. You. You do have the house paid off, and you have built up that nest egg to where when this term runs out in 15 years, you don't have to re up it, because that's when you could run into issues, you know, trying to get covered if you do have some preexisting conditions. So that's kind of why I had you unpeel that onion a little bit.

[Ken Coleman]

But, yeah, it's funny, you know, you said you were. You're kind of sharing all the different things, and you said, we have $78,000 left. It's mostly credit cards. That mattress didn't cost you that much, did it? What kind of mattress?

[Jade Warshaw]

No, no, I just say that was like 3,000.

[Caller]

3 or 4,000. I can't even remember now.

[Ken Coleman]

Right. Yeah. And, you know, you said something also that was fun, and I'm trying to encourage you on this, but, you know, the answer is not getting a flip phone. Although I think that would probably be great for the whole world. Like, if every smartphone were destroyed mysteriously.

[Jade Warshaw]

That's not a bad thing.

[Ken Coleman]

It would actually be great for the world. But the issue is not you getting a flip phone to deal with the apps that you're spending money on. The issue is stop spending money on all those little things and go. I'm going to rearrange my priorities right now as to what I'm spending on.

[Jade Warshaw]

Jennifer.

[Ken Coleman]

That's the key.

[Jade Warshaw]

Jennifer. Ken, I have a. My. My spidey sense is going off, and I have a sense.

[Ken Coleman]

Jennifer, I like when this.

[Jade Warshaw]

Are you are Candy Crush. Is it a.

[Caller]

No, I do not have any game.

[Jade Warshaw]

Okay. Okay.

[Caller]

So busy. Yeah, no, I actually run. You know, I run two businesses. I'm busy. I am like, okay, I'm hammering this stuff out and I'm just tired. I'm sick and tired of being sick and tired. And I keep going, okay, we got this.

[Ken Coleman]

We're.

[Caller]

We're doing this again. We're doing more. We're doing that. And I'm like, okay, I'm only gonna do this is last time. I'm done. I'm gonna be smarter. I'm not getting into debt again. This is so stupid.

[Jade Warshaw]

Well, it's your husband, too. Is your husband too. Where does he fall in all this?

[Caller]

He's very passive, but he goes like, it's. It's. I'm. I'm more of a go getter.

[Jade Warshaw]

Okay?

[Caller]

More high energy. He's more chill. But he's very loyal to his job. This is his own. He's only had two jobs his whole life, you know, so he's pretty more calm and collected. We're definitely opposites.

[Ken Coleman]

Is he the saver or is he a spender?

[Caller]

No, he's. He's very frugal. And unfortunately, we. I don't know. We. I'm a little bit disappointed, but it's my fault, too. I can't have him in control of.

[Jade Warshaw]

You know, you're driving his foot down. You're driving.

[Caller]

Yeah.

[Jade Warshaw]

And you need him to say. You need him to be strong when you're not. To be like, hey, Jennifer, we're not doing that. And he's. You can't depend on him for that right now. That's what it sounds like.

[Caller]

Yeah.

[Ken Coleman]

I run the show and I know you do, Jennifer. You know what? I'm gonna say something to you, and I hope you receive this with total.

[Caller]

I will.

[Ken Coleman]

Okay. You are a force of nature. You're a storm. And I'm not saying that. I'm not saying that as in, like, negatively. I'm just saying you got power, girl. I can feel you pulsating through the phone. I can feel it. And I'm gonna make a suggestion from my own experience here. I think you need to slow your life down, period. And I'm going to challenge you over the next seven days to take an inventory of your life. I want you to start with where you're spending most of your time, how that time is actually being spent. So where. So that's work, personal, family, whatever, relaxation. I want you to do an inventory. And I think one of the reasons why you're back for the third time through baby step two, is that you are going so fast and so furious, and you are off the seat of your pants because that's how you're wired, number one. But I think your life has gotten so intensely chaotic and fast that you don't even give yourself a chance to think about the impulse spending. And I think if you could slow your life down and slow it in the form of how do I want my day, my week, and my month to look? I think the third time around, because you are sick and tired of being sick and tired. I think that's going to help you. I just think you're going so fast that you don't even know what's going on with your finances. I hope that encourages you. Hey, listen up. Everyone is at risk of identity theft. I don't care if you're a hermit living off the grid, listening to the show on a battery Powered radio. All of your data collected by every company you've ever done business with. Lives online. Your bank, your doctor's office, retailers, the apps on your phone, the gas station where you of loyalty rewards, they all store your info online, making them ripe for a cyber attack or data breach. That's why I've been telling people for almost 25 years they need an ID.

[Jade Warshaw]

Theft protection plan and the only one.

[Ken Coleman]

I've ever recommended is from Zander Insurance. They monitor your personal and financial info, even your home title, and take over the work if you become a victim. It's the most thorough and affordable plan out there. I even have it for my family.

[Jade Warshaw]

And our entire team.

[Ken Coleman]

Visit Xander.com or call 800-356-4282. All right, folks, investing, for those of you who haven't done it, maybe you've only heard a few things about it, it can be intimidating. There's a lot of minutia to you want to get somebody you trust and there just creates a, it creates a lot of emotions for people. It makes it very scary and it doesn't have to be scary and it doesn't have to be complicated. So whether you're a beginner or you're looking for next level strategies, the Ramsey Investing Hub. This is a fabulous, fabulous opportunity for you to kick the tires. Learn what you need to learn. Get really confident because of how clear you are about what you need. It's got tools and a ton of information. Go to ramseysolutions.com investing. That's where the hub is, ramseysolutions.com investing or you can click in the description, the link in the description if you're listening or watching, listening on podcasts or watching on YouTube. So again, the Ramsey Investment Hub, fabulous information for you.

[Jade Warshaw]

Great.

[Ken Coleman]

Let's go to Jen now in Columbus, Ohio. Jen, how can we help?

[Caller]

Hi, thanks for taking my call. I am a single parent of a special needs child and have I'm at step three, the baby steps and I'm trying to create financial security for us in our future and debating if I should have a financial advisor take over my investment and retirement account just given the amount I take on a daily basis and then also in the future there's some pretty big things I'm expecting with my child.

[Jade Warshaw]

Okay, tell us that first.

[Ken Coleman]

Give us the big stuff that you're thinking about that you're going to be dealing with.

[Caller]

Unfortunately, he has a genetic condition and will likely need a heart transplant. It's a really hard reality, but I enjoy him every day. It's also a possibility he may be handicapped. The genetic condition he has is incredibly rare and we have like best doctors, but you know that that's what's falling on me. I'm the full time caregiver.

[Ken Coleman]

Oh, my goodness.

[Jade Warshaw]

How old?

[Caller]

Eight.

[Jade Warshaw]

Eight years old. Okay.

[Ken Coleman]

Any idea what the time frame could be for that surgery?

[Caller]

It could be. So typically with transplants, it's either a newborn toddler, adolescent or adulthood. I'm kind of planning that when adolescence hits that it may hit just because puberty is rough. Right now he's really stable, doing great, has a great medical team and is more stable than he's been for a long time.

[Ken Coleman]

So it could be on the short side, five to six years and it could go into young adulthood. So, well, past 10 years. That's a rough idea, correct?

[Caller]

Yes.

[Ken Coleman]

Okay.

[Jade Warshaw]

And is this something that you're insured for and you'll just hit your out of pocket max for the year? Is or is this something that has the potential to have heavier financial ramifications?

[Caller]

Fortunately, I. My background before I stopped working and taking care of him was medical research. And so I have been in a clinical environment for many years. So I have Medicaid, I have a transplant fund set up. I also have an able savings account, which is for disabled people. And so I do have my foot in the door for the worst case scenario to happen again. I'm doing everything I can taking the best care of him in the world.

[Ken Coleman]

Are you working outside the home?

[Caller]

I'm working part time from home, so I do make 60k a year, which is great.

[Jade Warshaw]

Okay.

[Caller]

And that took, you know, five plus years to get to a point where I could work.

[Jade Warshaw]

You're amazing.

[Caller]

But it allows me. Oh, thank you.

[Ken Coleman]

Does that cover all of your necessities? That gives you a little bit of margin as well.

[Caller]

Fortunately, before he was born, I had a good cushion with my investment fund from working for several years.

[Jade Warshaw]

Okay.

[Caller]

So I was able to use that to get through hard times. And now just kind of at a point where I can think about investing in retirement, which is really exciting.

[Ken Coleman]

One more question because Jade's going to coach you through here. This. But I'm just curious, do you have any kind of child support from the father or are you on your own there?

[Caller]

A little bit like 500amonth. So I. But I would rather it's better for me to manage things. Yeah.

[Jade Warshaw]

Okay. So first off, kudos. Like I said, you're. You're incredible. Honestly, the whole transplant and the understanding how to prepare for that, you know, more about that than I, than I do. So very good on starting those things in place. But to talk about the investing, you know, what we teach here is fairly simple and I think that it's something that you'll be able to implement with the greatest of ease because you're smart as a whip. I can tell that. So it's once you get out of baby step three, you're just going to take 15% of your gross income and you're going to put it away. Does your part time job, I'm guessing there's no benefits there. Is there a 401k?

[Caller]

There isn't. I have a Roth IRA.

[Jade Warshaw]

Okay.

[Caller]

It's not where I want it to be, but yeah, again, it's exciting to think about investment in retirement from where we've come. But it also completely overwhelms me.

[Jade Warshaw]

Yeah.

[Caller]

Like if I am going to do that myself, I forget if I previously mentioned I have found a special needs financial planner and he is capable of kind of taking that off my plate. Obviously they charge the percentage.

[Jade Warshaw]

What is the percentage given?

[Caller]

I think it was 1.5 and then once it gets to 100,000, it decreases.

[Jade Warshaw]

How it decreases? You said once it hits, it decreases.

[Caller]

Yeah, I think once it hits 100,000, it goes to either 1.1 or 1.2. I don't know how much of an impact that would have.

[Jade Warshaw]

Okay. And so the biggest point then is just to make sure this is not something you're just handing over and saying, hey, do this for me. I want to make sure that you are speaking into that. Because we would say, you know, that that investment mix needs to be across four different fund types and he might have a different idea of what that is. Right. So you kind of have to have a clear point of view of what you want to accomplish. And then you guys need to work together as opposed to him saying, here's what I'm going to do. Does that make sense?

[Caller]

Yeah, because I definitely want to understand and not just hand over the money, but that's right. And also like if hard times hit like money's, you know, I'm still even just trying to get like on top of my budget. But yeah, I want to be informed.

[Jade Warshaw]

Yes, you want to be informed. And let's just go back to what you said right quick. Because yeah, if you do this three to six months and in your case I would do six months because you've got the health issues and you're a single mom. So I would do six months of expenses and that really should be A good safety net, Jen, against hard times again, because what I don't want is for you to invest this money and then at some point in life, have to take it out before you're ready because of emergencies. Right. So for you, I think it's going to be so important not only to have an emergency fund, but to also keep on stash whatever your out of pocket max is for the year and just to have that there because, you know, you're going to the doctor, you know, you're hitting these deductibles so that you're not depleting that emergency fund that's there. Because emergencies are things that are unexpected, they're urgent, there are things that must be done. But the unexpectancy of it is really the key thing of an emergency fund. You know that these health issues are going on. Right. So that is something that we can plan for in a sinking fund. So think of having that out of pocket max there as a sinking fund all the time. And each year just know that you're replenishing whatever that is. And I don't know if you are, you know, in a high deductible plan or not, but if you have access to an HSA after you do that Roth ira, an HSA would be a really great option for you because, you know, you have these health expenses.

[Caller]

Yes.

[Jade Warshaw]

So if I were you.

[Caller]

Go ahead, go ahead.

[Jade Warshaw]

No, you ask, what.

[Caller]

What are your thoughts about outsourcing to a financial planner? Like, as long as I'm informed. Is that something that's kind of equivalent to me managing it on my own or.

[Jade Warshaw]

Yeah, don't think of it as outsourcing. Think of it as somebody that you're working together with. And Ken just mentioned our Ramsey Investing Hub. I'd like you to go over there because you're going to start to see all the different tools that we offer. And off the bat, just for your Roth ira, you might find that you can pick those four types of mutual funds, right? Growth growth and income aggressive growth and international. And you're just taking that 15 of your income and you're putting equal a fourth into each of those different funds. And then as it starts to grow and as you start to plan for the future, you might say, hey, I do need somebody on board to help me plan long term, especially with taxes and things like that.

[Ken Coleman]

Jen, you're an amazing mama bear. Keep your chin up. Keep moving forward.

[Jade Warshaw]

All right. Dave, you have some strong opinions, possibly?

[Caller]

Yeah, I think so.

[Jade Warshaw]

Okay. Because you really prefer credit unions over big Banks.

[Ken Coleman]

Well, credit unions for one thing, are non profit, which means that the members, the customers own the credit union. So any profits that the credit union makes goes back into customer pricing.

[Jade Warshaw]

So you get better interest rate on savings, cheaper checking and so on, that kind of thing.

[Ken Coleman]

But what's more important than that though is the fact that the customer is the owner, changes the spirit on the credit union. So I find very few credit unions that aren't very customer centric.

[Jade Warshaw]

Well, and I think we have found.

[Caller]

One that is incredible and that's Fairwinds.

[Jade Warshaw]

They are an incredible credit union that is really out with the heart to help the customer.

[Ken Coleman]

They're the right kind of people with the right kind of values and they've done a really, really good job with customer service and the deals that they're offering. The Ramsey Tribe is incredible.

[Jade Warshaw]

Yeah, absolutely. And I love that the things that we teach, they so line up with. And you're right, their customer service is unbelievable. Winston and I just, just signed up and we got an account. Yeah. And I'm not kidding, it took less than five minutes. It was so user friendly. Like the step by step approach was unbelievable. And then the next day my phone rings and it says Fairwinds on my phone.

[Caller]

So I answered it and talked to.

[Jade Warshaw]

Someone there and they said, yeah, they give calls to every new customer. And so again, they just really care about your experience. And I, I so, so appreciate that. Plus, anything that you can do at a traditional branch, you can do with [e-mail] or on their app. And you'll have free access to over 33,000 DOL ATMs.

[Ken Coleman]

Hey, you guys know how much I hate banks in general. And so for me to do this is a big deal. Talk to our friends at Fair Winds and check out the combined checking and savings bundle that they created just for the Ramsey Tribe. You guys, it's incredible.

[Caller]

Yeah, you guys, it's so easy to.

[Jade Warshaw]

Join Fairwinds no matter where you live. So go to fairwinds.org Ramsey Fairwinds is.

[Caller]

Federally insured by NCUA.

[Ken Coleman]

All right, folks, how you doing on the baby steps? I don't ask to shame you or make you feel any kind of negative emotion, just quick check in because this is a journey. The steps are simple to understand, very, very difficult, obviously to hustle through it. And we've got a quick quiz that will allow you to see where you are in your progress and get a personal plan. And this is just that extra little encouragement and gives you a plan. And so all you gotta do Is go to the show notes, click on the link titled are you on track with the baby steps? And complete the quiz. And I think you'll be really, really encouraged by what you get back. Anna is gonna start us off now here in Chicago. Anna, how can we help?

[Caller]

Yes, hi. Thank you for taking my call. I'm calling with a question. Ask for an adv Financial and the relationship aspect of my life. I am with someone for around three years and we have a bit of a different approach to money. I also make almost three times more as he does. So I'm trying to navigate that. That aspect. He's more of a spender, go with the flow type of Persona. I'm more of a saver, slash investing typ type of personality. I am 39. I have two properties. One is a rental property. I just recently bought a house. Even though that we are together, we're not married, we're boyfriend, girlfriend. But the goal would be to. To hopefully get married at one point.

[Ken Coleman]

So hold on, because I know you're leading towards a question, but I'm assuming based on what you just said that you guys are keeping your finances separate. Is that true?

[Caller]

That is correct. And at one point we had a joint account where we were contributing. I would say 50, 50, and all the bills were split 50, 50. However, that didn't work. It did not work. Yes.

[Jade Warshaw]

Well, you're living two different lifestyles. You're making three times more. That's a whole different lifestyle than what he's living. So of course that's not going to work.

[Ken Coleman]

Okay, so what is your question? What can we address specifically?

[Caller]

Yes, so I wanted to know how would you approach that type of discrepancy? He's a very hardworking person. He is an electrician. He makes a good income, but he's not as driven as I am. I'm in sales. So I think I am on trajectory to make more and more money. That's the goal for me at least.

[Jade Warshaw]

How do you. Can I can I just ask you this question? Because this will help Ken and I know what your definition is of driven and successful. Does driven to you and successful equate to dollars, or does driven and successful equate to promotion? What does that mean to you? Because that'll help us understand how you're talking about those words a little bit more going forward.

[Caller]

Yes, great, great question. And I think for me it's more so about the lifestyle. Money, of course, is going to. I think it's going to translate ultimately into money because then you can travel More potentially retire early. And that's one of my goals, to retire in 10 or 11 years. And that's essentially how I see it. Also just being a go getter. Right. Trying to network, maybe since he's an electrician, get more of a side business going where I.

[Ken Coleman]

Okay here, but I got to get to this. What is your question for us? We've got a lot of detail now, and I think I know completely what's going on. I got more on that in a second. However, I want to make sure that we get your core question. What is your question?

[Caller]

Can we make it work?

[Ken Coleman]

Yes. Yes, you can make it work work. I'm glad that's the question.

[Jade Warshaw]

Me, too.

[Ken Coleman]

Because I know that Jay and I both have opinions on how. One other super fast question, and then I'm ready to unleash. All right. How much money do you make? And how much money does he make?

[Caller]

I make 300,000 a year. He's around 100,000.

[Ken Coleman]

Okay. All right. So we got a lady who is extremely driven. I love, by the way, Jade, your question. Jade's question revealed everything that I needed to know.

[Jade Warshaw]

Right.

[Ken Coleman]

And Anna, here's. Here's my take. And then Jade will come in and she'll agree. Disagree. Edit. Clean up. This is what we do. Male perspective right here. You said that your man is a hard worker. As an electrician who doesn't own his own business, he's making $100,000 a year in a trade that is never going to go away. And you said he's a worker. The man's making $100,000.

[Jade Warshaw]

That's great.

[Ken Coleman]

This guy is not a loser. And you didn't say he was.

[Jade Warshaw]

He's in the top 21%.

[Ken Coleman]

Yeah. This guy's doing real well. Yes, he's a. Yes, he's a. A spender, and you're the saver. Okay. But that can be dealt with and relationally through premarital counseling and really diving in on why you do what you do, why you spend, the way you spend. Understanding each other is the key word here. And then. And then getting on the same page, which to me is also marri. Not this plain house that you guys have been playing house for three years. That's the first thing. Second thing is I'm a little troubled by the fact that you are in a position where, in a sales role, you have no limit. And when Jade asked you the question about defining success for you, it was go getting, staying on the treadmill of success, which I'm that way. I get it. But not everybody's wired that way. And that's an unfair thing to expect of a spouse or a boyfriend. If he's not wired that way, that's okay. He's not a loser. He's not a lazy duffer. This guy is a good dude, hard worker. He's just not wired the way you are. And you got to be understanding of that because that's going to end up creating tension long term in the relationship. If you expect him to act the way that you act now, you guys should value money the same way and have shared values and then get the behaviors on the same page. That can happen over time. Last thing, and I want to get Jade's take on this because she's paying attention. She's got. I want the female take on this. I think that you need to check yourself a little bit on what you expect of him and long term, what a successful relationship looks like. In light of what I just said, I think you got a little bit too much of your own personal baggage somewhere. We don't have time to unpack that. And you're kind of putting that on him. That'd be my quick take. But I'm anxious to know what you think. Jay.

[Jade Warshaw]

I, yeah, I, I'm with Ken to, to an extent, I think, yeah, for you, it does equate to dollars and cents equals success. And that's not necessarily a bad thing. But to Ken's point, if the goalpost is always moving, it's hard to know when did I hit it? Like, did I, did I meet the goal? Am I ever going to be, quote, successful? Right. I think the problem in the relationship is for you with, you know, you're dating this man, if, for you, success, if that also points to whether or not you're a leader. Like, if that definition filters into those areas of, is, is he a leader because he's not making this money? Is he considered strong? Like, right. Yeah, because he works strong, right? Like, if it starts filtering into those areas to where you're viewing him as weaker, you're viewing him as less of a leader, I think that is going to cause problems over time. So I think your homework is, is to keep everything in its proper place and say this, you know, how can I say this? To keep everything in its proper place and say, these are the goals for my life and for me, you know, I view this as a measure or a bar of success for me. And if somebody else doesn't meet it, it doesn't mean that they're not successful because they might have a different bar of what they view as success. And so sitting down with him and saying, hey, you know, Biff, what do you consider to be a successful measure? Like what does that mean for you? And then it's you being inquisitive to him and you being curious about what his definition is. And so you guys can start to learn about what that means. Because I think the breakdown would be if you start viewing him less than or as somehow weak or as somehow like not a leader.

[Ken Coleman]

Yeah.

[Jade Warshaw]

If you're married to this person, that is not going to work.

[Ken Coleman]

Exactly right. He does it. You said one little thing that concerns me. He said I'm just, you know, he doesn't have a side hustle or he doesn't own his own business. He doesn't have to. He's making $100,000 as a tradesman. The bigger thing that you guys have to do is get on the same page about debt. No debt, a controlled spending budget, things like that. That can absolutely happen. This idea that he has to have the same professional drive as you, I don't like that. And you may have a hard time finding a man that ever has your drive, sweetheart. Cuz you got the drive. Ever look at your phone bill and feel like you're trying to decode a top secret message? $17.42 for advanced signal Optimization. What even is that? Well, luckily Boost Mobile keeps it simple. Just $25 a month month for unlimited talk, text and data with no contracts, absolutely zero nonsense and a price that's guaranteed forever. Plus Boost backs it up with a 30 day money back guarantee so you can try it without feeling trapped. Go to boostmobile.com Ramsey to make the switch today. That's boostmobile.com Ramsey restrictions apply. See boostmobile.com Ramsey for details. This is the Ramsey show where America hangs out to have a conversation about their money, their profession and their relationships. Excited to have you with us. Triple 882-55-5225 is the phone number. Triple 882-55-2225. I'm Ken Coleman, joined by the fabulous Jade warship Shaw. And we're here to help. She'll help you save and budget that money. I'm gonna help you try to make some more money. Austin's up in Peoria, Illinois. And let's go to Austin. How can we help?

[Caller]

Hey guys, how's it going?

[Ken Coleman]

Good. How are you?

[Caller]

Oh, pretty good. So my question is, I'm 19 years old, moved away from home, currently living on my grandpa's farm and my dad wants $2,800 a month from me for what? He does not. So basically, his dad, my grandpa. You know, most kids turn of age when they're 18. My grandpa decided to do that for my dad when he turned 21. Decided for me when I turned 21.

[Ken Coleman]

Okay, I'm. I'm confused. Your dad decided to do what? Your grandpa decided to do what? I'm not understanding.

[Jade Warshaw]

Like, you become adults when you're 21. Is that what you're saying? Instead of 18?

[Caller]

Yes. Yes, that is correct.

[Ken Coleman]

Okay, but let's just go back to. Why does your dad want $2,800 a month from you?

[Caller]

I don't know.

[Jade Warshaw]

That's your adult tax. I don't know.

[Ken Coleman]

No, you are. You're telling me. You're telling me your dad said to you, in some form or fashion, you went to live with your grandfather, and he said, I want $2,800 a month, and you just need to send it to me, and no explanation, and you didn't ask any questions?

[Caller]

Yeah, I had a couple conversations with dad about it, but, you know. But what seemed. Well, okay, so the conversations kind of went like this. You know, I asked him, you know, I told him I didn't think it was fair. You know, told him that if I'm living away from home and he's not paying any of my expenses.

[Ken Coleman]

Correct.

[Caller]

Then he shouldn't get any of my money.

[Ken Coleman]

Yes, and amen. Jay, do you agree with this statement so far? Yeah, she's stunned. I'm gonna get her a cold rag. She's in. She's completely stunned.

[Jade Warshaw]

I'm in shock.

[Ken Coleman]

I don't get it either. So you said it's not fair. What did he say?

[Caller]

So he just said that he was offended that I even have the. How would you say it? Maybe the ball.

[Jade Warshaw]

Audacity.

[Ken Coleman]

I like your way of saying it. I like your way. Sure, sure.

[Jade Warshaw]

Okay. Can you. I feel like there's a missing link here, because as you were rolling this out, you mentioned the adulthood thing. Does this. Is there a link there that you're saying. Saying, is there some sort of link? I'm trying to understand this other than to just tell your dad where he can put his opinion, which is where the sun doesn't shine. You know what I'm saying?

[Ken Coleman]

Like, is that Jade's asking the right question. Is that basically your dad's demanding that because until you're 21, you. You do whatever he says.

[Caller]

Yes.

[Jade Warshaw]

Got it. Got it.

[Ken Coleman]

Wow.

[Jade Warshaw]

Okay. Wow.

[Ken Coleman]

Yeah.

[Caller]

Well, so, you know, in my opinion, if I'm living Under his roof, eating his food. Food. He has the right to make whatever requirements that he wants.

[Jade Warshaw]

No, no, not really.

[Ken Coleman]

No. No. Let's just say. Let's just nail that down. If you were living with him now and you were making money, and you are, he could ask for rent and that's totally fair.

[Jade Warshaw]

Yeah.

[Ken Coleman]

And pay a portion of the utilities. At which point you still get to decide whether or not you want to do it or not. And then he gets to decide whether or not you get to stay. So that is a normal relationship thing. But this idea that if I lived with him, then I'd have to do whatever he says is bonkers.

[Caller]

What I meant by that, maybe I didn't make make myself clear. What I meant by that is, you know, if he doesn't want the living room lights on after 11pm I agree.

[Ken Coleman]

Yeah, no, I get it.

[Caller]

Yeah. He has a right to, you know, lay some ground rules. I want to stay there then. Yeah.

[Jade Warshaw]

So, yeah, sure.

[Caller]

That's what I was trying.

[Jade Warshaw]

Okay.

[Ken Coleman]

Ground rules. Yes. Demanding money from you that you make is what I was referring.

[Jade Warshaw]

When you don't even live there. Austin, you're 18, is that right?

[Caller]

Yep. I'm currently 19.

[Ken Coleman]

Have you paid him any money?

[Caller]

Yeah.

[Ken Coleman]

What have you paid?

[Caller]

I definitely have 2800 bucks a month, actually. Last while I've been sending him three grand a month just to. Yeah, try to.

[Ken Coleman]

How long have you been sending him? Him? How long have you been sending him three grand a month?

[Caller]

So about a year ago I came up to my grandparents farm work and.

[Ken Coleman]

Just answer my question. It's a number. How long have you been sending him $3,000 a month?

[Caller]

About four months. And then before that it was 2,800 bucks a month. And then before that he was paying for my expenses and he got all my money.

[Jade Warshaw]

Is there something wrong with him? Like is. Is there a reason? Is there a reason he can't work? Is there something. No, I'm sorry. No.

[Ken Coleman]

It's a legit question. I'm laughing not at your question, but because that's what's wrong with this. Something is so weird about this. So. Okay, so Austin, you've already paid him way too much. You should have never paid him a nickel.

[Jade Warshaw]

Don't give him any more money.

[Ken Coleman]

Don't give him any more money. And so if you called today because you're like, this doesn't feel right. And I'm going to get two strangers opinion on this. Hear us loud and clear. Your dad is manipulating you. This is crazy unhealthy. There's no good way to stop doing this other than just to stop doing it. He's going to come at you, he's going to guilt you, he's going to do a lot of things, but this is a point in your life where you have got to say no more.

[Jade Warshaw]

And you made the first right move by moving out. You know, by going to your grandfather's house. The next right move, once you have that. Here's the thing, Austin. Once you have that 2,800 or that 3,000 doll back in your pocket, do you want to know what you can afford to do?

[Caller]

Yeah, I want to fly a plane or helicopter. So.

[Jade Warshaw]

Yeah, or get your own place. My guy. Get. Get your own place. So you're out of this. Kind of is your. Yeah, you know, what I'm doing here is I'm kind of formulating that you guys are all kind of tangled up together is what it feels like. And you might need to get out of that.

[Ken Coleman]

Okay, quick question. Is your grandfather for, against or is he have no clue about this at all?

[Caller]

All.

[Ken Coleman]

So don't give me the long answer like your politician. Just tell me the answer. Does your grandfather know about it, yes or no?

[Caller]

He doesn't know about it.

[Ken Coleman]

Does he approve of it or disapprove of it?

[Caller]

I did ask him about that a while back ago and his answer was that he is not against dad getting some, but not that much.

[Jade Warshaw]

Okay, then you need to get up. Roll out.

[Ken Coleman]

That's where I'm going.

[Jade Warshaw]

Roll out.

[Ken Coleman]

Cuz grand is not helpful.

[Jade Warshaw]

He's not.

[Ken Coleman]

And now when you make this call to your dad and go pop the gravy train stops, by the way, name me point blank. No problem at all.

[Jade Warshaw]

Ken Coleman on the radio said.

[Ken Coleman]

Said that you were manipulating. I'm not kidding you.

[Caller]

I figured he'll probably listen to this.

[Ken Coleman]

Good. Well then dad, if you're hearing this, I got to tell you, my friend, I'd shake your hand, I'd have coffee with you. But I would tell you straight up that this is twisted, it is manipulative, it is wrong and it is destroying. If it not has already destroyed the relationship with your son. Stop this nonsense. Let the boy fly. Now Austin, back to you. Jade's right. You got to get out of grandpa's house as soon as you can. By the way, $3,000 a month is going to allow you to go get a nice apartment, my man. Today.

[Caller]

Okay, so the thing is, grand uncle does not live on the farm. My uncle does live on the farm.

[Ken Coleman]

Well, that's Fine, you got it. My point is we got to go. I'm running into a break. But listen, you got to get out on your own. You can afford it now. And move all family ties off of this deal so that the grief from your dad doesn't have a collateral damage coming from them. That's our point. Oh my goodness. Rachel, do you ever get these sketchy text messages that are like, hey, you need to update your address and verify so we can get you the package you didn't order?

[Caller]

Yes, I have, George.

[Jade Warshaw]

Sketchy. And never trust them.

[Ken Coleman]

And that's why we recommend Delete me. They help with that?

[Caller]

Yeah, they do.

[Jade Warshaw]

Delete Me actually goes in and removes.

[Caller]

Your information from data broker websites. And it is an incredible service that everyone needs.

[Ken Coleman]

And there's a lot of shady companies out there that solely exist to sell your personal data to bad guys. And that means your info, like your email address, your home address, your kids names, your name, everything is just out there for scammers and spammers to find.

[Caller]

So much.

[Ken Coleman]

But Delete me will delete your data. Hence the name. It's gone. They'll wipe it out for you so you can sleep easy.

[Caller]

That's right. And then once they remove your information, then they're going to send you a.

[Jade Warshaw]

Detailed report telling you where they found.

[Caller]

Your information, when they removed it, how many hours they've saved you.

[Jade Warshaw]

I mean, it is incredible. So detailed and it's beautiful.

[Ken Coleman]

Get this. So far they've reviewed 27,000 listings on my behalf, removed me from 240 data broker sites and saved me 77 hours of time. It's incredible.

[Jade Warshaw]

Absolutely amazing.

[Caller]

And Winston and I now get fewer.

[Jade Warshaw]

Texts, weird emails, spam calls, all of it.

[Ken Coleman]

I love it. So you got to be sure to check them out. Ramsey fans get 20% off their annual plans. Just go to JoinDeleteMe.com Ramsey that comes up to less than nine bucks a month. Super affordable.

[Caller]

Again, that's joins DeleteM.com Ramsey.

[Jade Warshaw]

Make sure to check it out, you guys.

[Ken Coleman]

All right, let's go to Aiden in Denver, Colorado. Aiden, how can we help you? Oops, that's the wrong one. Hold on. I apologize. Happy fingers there, Jade. You got to be careful. There we go. Line five. I was quick. You like that? Aiden, we got you. How can we help?

[Caller]

Hey guys, thanks so much for taking my call. I'm a huge fan of the show.

[Ken Coleman]

Oh, thanks. Thank you.

[Caller]

Yeah, so my fiance's parents. So my soon to be in laws recently announced at family dinner that they'd be selling off the majority of their current assets, they own about nine rental homes and they're planning on selling about five of them and investing the money into bitcoin.

[Ken Coleman]

I know this is a highly volatile.

[Caller]

Investment, and so I guess my question is just like, how do I handle that? What's my responsibility? And, you know, if they have some.

[Ken Coleman]

Sort of like, you know, bitcoin just.

[Caller]

Tanks one day, is it my responsibility to take care of. Of them in the next coming decades?

[Ken Coleman]

And my soon be brother in law.

[Caller]

He'S in huge support over this. He's saying, you know, he is. He's investing the majority of his money.

[Ken Coleman]

Into bitcoin right now.

[Caller]

He's saying, hey, you know, I'm here for my parents. Even as things go south, like I'm going to be taking care of them. He just. I'm not sure that he's 100% sure of the responsibility that he's taking on.

[Jade Warshaw]

By saying, so drastic.

[Ken Coleman]

Where's your wife in this deal? Because these aren't your parents.

[Caller]

No, no, they're. They're cheese with me.

[Ken Coleman]

We're kind of the black sheep of the family.

[Caller]

We, we're like, guys, this is a terrible idea.

[Ken Coleman]

And they're just, you know, they.

[Caller]

They have faith that we're a Christian family. They have faith that bitcoin is going.

[Ken Coleman]

To multiply ten times over eight in the coin.

[Caller]

Well, not in the coin.

[Ken Coleman]

We're a. Yes, yes, they do. They do.

[Jade Warshaw]

You said we're a Christian family and we have faith that the coin is going to go to the moon. They do, yeah. But I'm just saying that's wild.

[Ken Coleman]

It is. Okay, well. Okay, so I'll just jump in real quick because the first thing that came to me, Jade, was you and your wife are not responsible to take care of them.

[Jade Warshaw]

No.

[Ken Coleman]

If you have objected to this and have said we think this is highly risky, and if we're right and the. And the bad happens and the rest of the family and all the other kids are going go for it, mom and dad, then they're on the hook to take care of them. You're not. That's my opinion. That's an extreme opinion. However, I'm answering this, Jade, as if this were Stacy and I and a similar situation. And if I felt like this was really risky and thus should not do it, and if it goes the way that I think it could, I'm not. That is not my burden to bear. And I want to make sure that's clear. And I think if I were you, I'd have Your wife take the lead on this because they're her parents, not yours, and you're already the black sheep, and it already sounds like this decision has been made. So I got good news and bad news. The bad news is you can't stop them, and it's not your job to stop them, even if you could. The good news is, is you guys have made it clear to them, or you should make it super clear where you stand. Draw a boundary and say, we do not agree and we are concerned for you. If this goes bad, this is not something that we're going to be in a position to bail you out. I hope you understand that. And I would also make that clear not just to her parents, but to the other siblings. And again, your wife has to take the lead, and you are standing behind her, supporting her. That would be my take, Jade.

[Jade Warshaw]

Yeah, ken. Exactly. I 100% second what Ken is saying. And the only other thought I had is the good news is, well, I had two thoughts. One is, what is on fire that is making them do something so desperate? Is something going on that is causing them to just sell everything off and go into bitcoin? I mean, what. What would cause somebody to do that? Then I thought the other point was, well, they're not selling everything, right? They're just putting half the assets over there. So that's the one upside of this. And maybe you brought this up, so I'm just gonna say it. And I'm not suggesting that you necessarily go over and quote a bunch of scripture, but I mean, really, scripture says to be diverse in your investments, not to put everything in one. One in one basket.

[Ken Coleman]

So I think part of it is that their nest egg isn't totally where.

[Caller]

They'D like it to be.

[Ken Coleman]

100.

[Caller]

They say that they're worth a million dollars right now, but they have, you know, nine houses, and the majority of.

[Ken Coleman]

Them have mortgages on them.

[Caller]

So none of these houses are worth more than $200,000. So my thought is, you know, this.

[Ken Coleman]

Is a Hail Mary attempt at a retirement. You nailed it. You nailed it.

[Jade Warshaw]

So tough.

[Ken Coleman]

That's what this is. This is a wing and a prayer. And here's the problem with that. You wing it and it. And the prayer doesn't get answered. Who's picking up the pieces?

[Jade Warshaw]

Oh, it's. So, listen, I feel your pain when you put it like that. I felt that because that is hard to sit by and watch. Because here's the thing. What they built is really like, they've got. If they're worth a Million dollars. Now, they should be proud of that. And the fact that they could throw that away is painful to watch from the sidelines. 100%. But you can't. You can't make them. That's the hard part of this. You can suggest and say, hey, before you guys, here's your Hail Mary. Hey, guys. And this is through your wife, not through you. We love you. We heard about what you're getting ready to do. You. It's your life. But please promise me.

[Ken Coleman]

Yeah.

[Jade Warshaw]

That you'll watch this before you do it. And let's give them financial peace University, and let's make sure that they watch the investment segment for sure. They don't watch nothing else. Make sure they watch that, because that's going to teach them how to diversify their investments. It's going to teach them what to do for the long haul. And at least it's not you telling them. It's, hey, I saw this thing. Thing. And you know, again, this is coming from your wife and this is how me and my husband are handling our finances. It's really working for us. And we just want you to watch this before you make any drastic moves because it could influence the decision you make for the better and, like, frame it in a positive way because that's what they need. They. They don't need to be told you're about to make a big mistake. They need to be told, hey, oh, I'm. You guys are trying to maximize your investments. I'm on board with that. Hey, look at this. Because this could be a route for you to do that. That could be even better. Better. Right. So play to that part of them that's trying to do better instead of playing to the part of, oh, you're.

[Ken Coleman]

Going to make a big mistake is this thing. Where does it stand right now? What's the timeline? Because I'm just gathering that this has been discussed and they're pretty much ready to roll.

[Caller]

Yeah.

[Ken Coleman]

Well, I'm told that they have almost.

[Caller]

Or I guess 130,000 in Bitcoin right now. But then father in law, he told me that, that he took out $50,000, I assume on his key lock and has already invested into bitcoin. So they're like, bitcoin's about to blow up. Bitcoin's about to blow up.

[Ken Coleman]

They're ready for it to shoot up any moment now.

[Caller]

And so they're just putting everything they.

[Ken Coleman]

Can into it while they can.

[Caller]

So I'm assuming that they're, you know, next. The next five years is Their timeline.

[Ken Coleman]

I'm not, I'm not totally sure though. Wow. Well, you're a good man and I appreciate the call, but it feels like this deal's already happened, happened. So now they're playing the prospecting game, they're watching it. When are they going to sell? Are they going to just keep investing, investing, investing and hope that it's high when they're ready to pull it all out? You know, at this point I just don't think there's much you can do.

[Caller]

Right, right. Well, and that was my question for them too.

[Ken Coleman]

Like, hey, what happens if it does blow up? Like what, what's the number that we're.

[Caller]

Going to get to where we decide.

[Ken Coleman]

To sell it off and put it.

[Caller]

Into the S and P or, you.

[Ken Coleman]

Know, anything else that's less volatile. You ever played Black Jack at a casino? You ever gotten up?

[Jade Warshaw]

Oh yes.

[Ken Coleman]

Have you, Aiden, have you ever gotten up? You had a nice little run.

[Caller]

Poker's my game.

[Ken Coleman]

But yeah, yeah, yeah, right, but, but just to be completely honest here, like I've done that and I'm telling you, I'm sitting there and I'm going, I need to walk away.

[Jade Warshaw]

Yeah, you can't stop now.

[Ken Coleman]

I just won myself, my wife a dress. Yeah, I, I want myself a nice pair of shoes. I got tonight's dinner covered. I got the first two nights of our steak. I mean, I've been up, you know, like. And then am I doing.

[Jade Warshaw]

You put in.

[Ken Coleman]

Smart move is to do it. And I got, wow, one more hand. Let me just see if I can take this and double this. And then what happens? You ever had a rough run of cars? Or that frickin dealer just keeps just absolutely nailing you. Okay, my point is this is the same psychology here, except I'm out there with just money that I've already said is just waste money and it's fun and I got nothing on the line.

[Jade Warshaw]

It's not your retirement.

[Ken Coleman]

Yeah. This is like money. I got permission from my wife, it's in my little envelope. Right. You know what I'm talking about?

[Jade Warshaw]

I do, I do.

[Ken Coleman]

There's no risk on this deal for me, but I'm still getting greedy. And so that's the thing that I would be really, really concerned about. But again, this is not your call. Maybe your wife, she's got access that you don't. But even then, like Davis said a million times, Jade, it's hard for those people who changed your diaper and raise you to listen to your salient financial advice.

[Jade Warshaw]

Right? It's tough.

[Ken Coleman]

Oh, I hope it works. I really do. I got to go check Bitcoin, see what it's at right now. Hey, technology has changed a lot in the last 30 years. Now, the hot topic is AI. And I understand that it might seem intimidating, but if you use AI the right way, it's just another tool to help you work smarter and faster, like a calculator or a cordless drill. So if you run a business, you'd better get on board with it before you get left behind. And NetSuite by Oracle offers AI power powered tools that help small businesses improve efficiency and make smarter decisions by bringing all their major business processes into one platform. That way, there's one source of truth for the real time data you need to take advantage of opportunities. Then you can forecast better, scale more efficiently, and streamline those manual tasks that take too long. So join the more than 41,000 businesses, businesses including Ramsey Solutions, that rely on NetSuite to help tackle some of their biggest challenges. And right now, you can download the CFO's guide to AI and machine learning at netsuite.com Ramsey that's free at netsuite.com Ramsey all right, it is time for our question of the day, brought to you by Y Refi. Some lenders won't touch defaulted private student loans. But why? Refi was built for this exact problem. They'll explore refinancing options with a low fixed rate custom built for your situation. Visit yrefi.com Ramsey that's the letter y r e f y.com Ramsey it may not be available in all states.

[Jade Warshaw]

All right, today's question comes from Jared in Maryland. He says, I've seen videos on social media recently of money coaches telling people that it's better to rent as opposed to making payments on a house. With rent being completely out of reach for most people, it seems wrong to suggest covering someone else's mortgage rather than investing in our own equity and net worth, net worth. What's your take on this? Okay, so I think it just depends on the person and it depends on the situation. There is not a one size fits all approach to renting or home buying because it is a direct reflection of where we are, financially speaking. So it can't just say renting is bad or buying a home is good, you know, at every, at every turn because that's just not the way it works. So. So the way I like to think about renting, Jared, is renting is buying yourself time until you're ready to buy a house. That's really what it is, it's, I don't believe that renting long term is, or for, you know, renting without ever the, the goal of buying a house. Yeah, that's not a great idea. You're going to be throwing money away long term, so that's not good. But if you're renting for a short period or even a long period until you're able to afford to buy a house the correct way, I think it's a great thing. Now let's talk about the side of it because a lot of people think buying a house no matter what, get into a property, get into a house no matter what, you got to start building wealth. That's also erroneous because again it's the same thing. If you cannot afford to purchase a home, you cannot, you won't keep it, you'll, you'll end up foreclosing, you'll end up having to sell it. You know, it'll end up causing you to go into further debt, right? Because you can't manage the payment. And so buying a house prematurely is also a bad move. So, so the best time to buy a house is when you can afford to buy a house. And so around here, in my personal experience as well, is that the best way to buy a house is a. When you're out of debt. Because now you have the fullness of your income available and you can start to kind of frame this up in the right ratios, right? Because you don't want your home payment to be any more than 25% of your take home pay. And if you're in debt, that could feel like, well, that's impossible. But when you're in debt a lot of things feel impossible. So being out of debt first, second thing is, yeah, you do need to have an emergency fund there because let me tell you something, can I see it all the time. Somebody buys a $400,000 house and can't, you know, they buy it too soon with no emergency fund and the AC goes out and they can't afford to fix the four thousand dollar ac. Yeah, right. And so now they're like, you know, on the rocks because of all this. So you've got to be ready. So that emergency fund is so important. And then now we're doing the down, now we're getting the money together to actually purchase the house again. Trying to put anywhere between 5 to 20% down. 20% will keep you from PMI, but 5% is fine, especially if it's a first time home buy. And yeah, now you're getting in and it's the right footing and you can actually keep the house, enjoy the house, build equity in the house the way it's supposed to happen. But, yeah, this business of renting is always bad. Buying is always bad. Renting is always good. Buying is always good. That's bananas.

[Ken Coleman]

That's.

[Jade Warshaw]

That's somebody who's not using critical thinking. So, skills.

[Ken Coleman]

Yeah, well said. I couldn't add anything to that, so I'll just say be careful what you're watching on social media.

[Jade Warshaw]

Good call, Ken.

[Ken Coleman]

I just cannot explain to you how much the experts, when they're given financial advice, how much of their stuff is all about clicks and then selling a product.

[Jade Warshaw]

Right, Right.

[Ken Coleman]

As opposed to somebody who's an actual financial professional. So I love what you said. You got to do what's right for you in the moment and allows you to set yourself up for the long haul. Let's go to Justin in Atlanta. Justin, how can we help?

[Caller]

Hi. Thanks for taking my call.

[Ken Coleman]

Yeah. Hey, can you remove the blanket from the phone there? I can barely hear you.

[Caller]

Is this any better?

[Ken Coleman]

Not much. Maybe a little bit more volume from you.

[Jade Warshaw]

Huh?

[Caller]

Let's see if I can move to a better area.

[Ken Coleman]

Well, what you just did. What you just did helps. So maybe hold that phone right on your mouth there.

[Caller]

All right. So I just started doing the baby steps this past month.

[Ken Coleman]

Okay, great.

[Caller]

Kind of a preemptive question for when I get there, but I do have a car payment, which will be my largest debt. So the last. The last debt to pay off in baby step two, it is at 0% interest, though. So my question is, when I get to that last debt, should I continue to, you know, baby step it and snowball everything into that 0% interest? Or would that be time to maybe start working on the house or investing more since it isn't accruing any interest?

[Jade Warshaw]

I thought you said you were working the baby steps.

[Caller]

I am.

[Ken Coleman]

Well, he's doing it, Justin. He's Justinized it.

[Jade Warshaw]

Yeah, this is a Justinized version.

[Ken Coleman]

Justin ized.

[Jade Warshaw]

So I get what you're doing. A lot of people get that. They do that, right? They look at the baby steps and.

[Ken Coleman]

Go, okay, give me a little tweak here.

[Jade Warshaw]

Yeah, just tweak it. Adjust it a little bit more for the. For. To my liking. But the truth is, when you do that, it doesn't work right. If you do that, it is a system, and a system works when you do all the steps in the system at the right time in the right order, the right way. Right. Otherwise it's not a system anymore. So by you breaking down the system, I'm telling you right now, if you do that, it's not going to work. And it won't be our fault. It'll be because you justinized it. So let's talk about why it works, to do it the way that we would teach here, in the way that we do teach here. So if you say to yourself, all right, I'm going to pay my debt to a certain point, and then I'm going to keep some of that debt around. And now what did you say? Maybe I'm going to move over to investing. If you move over to investing and you still have money debt, if an emergency comes because of your debt, let's say you, I don't know, lose your job, and now all of a sudden, even though it's at 0%, you still have a car payment and it's probably pretty hefty. And now it's like, oh, gosh, I need money. Now you're dipping into your investments for an emergency fund because you don't have an emergency fund. It's like, oh, crap, why did I do that? Right? So all of these things, they, they work together. So when you pay off all of your debt now you have the fullness of your income at your disposal, all your of of it. And now how quickly could you save up three to six months of expenses? Super duper fast. It's the only, it's the only thing that you're paying money towards other than your normal budget at that point. So you can do that super fast now that you've got that cushion. It makes sense. Okay, the next logical thing for me to do, I've got, you know, I've got my insurance in place against debt, which is your emergency fund. Now I can go and I can invest with confidence. Confidence. Because I know I'm not going to have to pull out this money. I know there's no rainy day that could come that could make me have to take this money out. So now you're investing with confidence. And investing early before paying off the house is so important because everybody is going to reach a day, Justin, where they can no longer work. And you're going to need actual money that you can get your hands on. You're not going to want to sell your house, right? So we start with that nest egg first so we can build it up, take advantage of, of compound interest over time. And that's why that's happening before we pay off the house. Now, after we've started that train going. Now we can start reaching over and putting extra payments on towards the house. So do you see? I mean that's just a very, it's not even going super deep into it, but you can see how these things build on one another. Right?

[Caller]

Right, Yeah. I mean, I misspoke originally. I meant to say to start building the emergency fund, but I do understand, understand where you're coming from and it, it does make sense. I was just. Because at zero, at zero percent, I was like, oh well, you know, I'm not losing money by keeping it longer, but it would put it risk for a worse emergency.

[Jade Warshaw]

You're right. You're not losing money in that way of, you know, in, in of of interest. But because it is still this risk that's hanging around and because it is still putting a drain on your income on a monthly basis basis, it's like rip the band aid off, pay that thing off so you can finally have all of your income at your disposal. And then that's going to help you to go faster in a lot of other ways. It's like a pitcher of water, you know, if you're having to pour it across six different cups, it's going to take forever to fill up those six different cups as opposed to, if you just have to pour it into another cup, then you can fill it up fast. So that's how the debt snowball works.

[Ken Coleman]

Yeah. Great. Just, just. I love what you said earlier. If you start modifying the system, it's no longer a system. You've just created Frankenstein.

[Jade Warshaw]

That's right. That's right.

[Ken Coleman]

I love that. I think the system works. If you don't like the system, you don't have to use it. But if you want to use a system that works, there it is. Appreciate the call though. We get the question all the time, the answers are still the same.

[Jade Warshaw]

When you go through a job loss or job change and lose your employer.

[Caller]

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[Jade Warshaw]

Care of your family during that time. Because if you didn't know, the cost of COBRA has gone up a lot.

[Caller]

In the past few years.

[Jade Warshaw]

And CHM is an affordable, biblically based alternative to health insurance.

[Caller]

So do your own research, Church. The CHM is a great option that's.

[Jade Warshaw]

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[Caller]

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[Jade Warshaw]

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[Caller]

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[Jade Warshaw]

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[Caller]

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[Jade Warshaw]

Try getting that with cobra.

[Caller]

So if you're going through a job loss, life change, or just want to explore other options to save on health care, CHM might be perfect for you.

[Jade Warshaw]

CHM programs start as low as $98.

[Caller]

A month, so find out more at chministries.org [e-mail] budget.

[Ken Coleman]

All right, if you are buying or selling your home or thinking about buying or selling, don't get stuck in the headlines and all of the tiktoks and the reels on Instagram because this is a massive decision and we want to help you. Let me just give you an idea of the latest trends based on maybe what you've heard heard or what you've read. The median home price did go up slightly last month to about $430,000. More homes are on the market, nearly 1 million, the highest since 2019, but in some areas still not enough to meet the demand. The average 15 year fixed rate rose to 5.9 last month, but it's still under 6%. If you're financially ready, a small rate increase shouldn't hold you back. But if you want to learn more about the housing market trends and get some free tools to help you buy or sell with confidence, go to ramseysolutions.com market that's ramseysolutions.com market. Great resource for you to get some clarity. And if I've said this once, I've said it a hundred thousand times. Clarity always gives you confidence. And on a big decision like a home purchase or a sale, you need clarity so that you can confidently move forward. Jesse is up now in Los Angeles, California. Jesse, how can we help?

[Caller]

Hi. This is exciting. I've never done this before, so I'll try to make this brief. I'm 78. I've been a widow for five years. I'll go back to 2009. Our house was paid for. We had a son with a traumatic brain injury who lived in that but could no longer. So we sold it. We did not know that we needed to reinvest that money. We got caught owing the IRS $96,000. We had that money but we were told not to to use that. So I took a small loan out on my house. My house would sell for about 600,000. I owe 44,000. I have one credit card that I owe $5200 on my income, after taxes is a survivor benefit for my husband and a little of my Social Security, which, after taxes, is about 2,500, $2,600 a month. I have enough money to pay my bills. I don't have much left over. I drive an old Lexus that's 22 years old that has 300, 117,000 miles on it, which I love. You know, I don't need new things. I've lived in this house 58 years, so I'm not thinking of selling that at all. So just kind of wanted a little advice. I need to get rid of this.

[Jade Warshaw]

Credit card, the one that's got 5,000 and some change on it.

[Caller]

Yes.

[Jade Warshaw]

Okay. You threw a lot. You threw a lot at us very quickly. So I want to make sure.

[Caller]

I'm sorry.

[Jade Warshaw]

No, no, you're doing great. Don't. Don't apologize because you know your stuff, and so that's. That's great. I just want to recap and make sure I understand the big picture here. So you're living in this house. You owe 44,000 on it, but it's worth six. Six something.

[Caller]

Yes, it probably would be.

[Jade Warshaw]

Okay, and then you've got one credit card for 5,000. Or is there still more debt left over from the irs?

[Caller]

Oh, no, that's been paid off. That's. I re. I took a loan against my house. $44,000 I owe is from that.

[Jade Warshaw]

Got it. Got it. And so the only debt is the 5,000. Thousand.

[Caller]

Yeah.

[Jade Warshaw]

Okay. And the income, albeit very low, it's. It's been enough for you to live on, correct?

[Caller]

Well, I can pay all my bills. Yes. I don't have. I don't have much left. The hard thing is, it's like, you know, like I had to go buy a pair of glasses, and I didn't have the cash, so I put it on the credit card, you know?

[Jade Warshaw]

Yeah.

[Caller]

Or. Or if something happens to my car, I only have. Well, when we invested the money from the duplex we sold, we used all of that money, which was our 401k, on my husband's care.

[Jade Warshaw]

Got it. So there's nothing left. There's no nest egg left.

[Caller]

Just $7,000.

[Jade Warshaw]

7,000. Okay. That's your only savings? Only cash to your name?

[Caller]

Yes, ma' am. That's it.

[Jade Warshaw]

Okay. Okay. And 78 years old. Yes.

[Caller]

Yes, ma' am. Huh.

[Jade Warshaw]

Okay. Listen, you're smart as a whip. Like you. I. You're on it. You know your number. Numbers. Is there anything that you could do to bring In a, you know, a couple hundred extra bucks a month.

[Caller]

I knew you were going to ask me that.

[Jade Warshaw]

I, I. And it truly is a question I'm asking you because, you know, you know, you know your limits and you know, what you're able to do. But just talking to you, I'm like, listen, seems like it's possible, you know, it's just.

[Caller]

Well, yeah, I just don't feel like I, I want to go out and look for a job at my age. I guess that's what I'm doing. Thinking, you know, I was always a mom at home. We were married 55 years, and I only worked out of the house 12.

[Jade Warshaw]

Yeah.

[Caller]

And that was for the school district, and I would not go back out there. Now it's hectic. You know, I get it. You know, I have to say, I don't know if we're allowed to say this on program or not, but, you know, God is my provider, and I try to be as wise as I can. Although I have put things on that credit card that I really didn't need to, you know, So I think what, I think what I need to do is just, you know, be a little bit more careful with my spending. But it's just that, I mean, I go out for lunch with my friends and they automatically pay for me because they know I don't have a lot of extra money.

[Jade Warshaw]

Sure.

[Caller]

You know, so I'm glad you're telling me not to sell my house.

[Jade Warshaw]

I'm not telling you to sell your house. Here's, here's, here's why. Because if we put you in a rental, it's going to be in a, in an, in a more a situation that there's a lot more variables. Now. There is a situation. There could be a way world where you downsize to a smaller house to free up some of this money.

[Caller]

Where I live, my kids live in Nevada. So, you know, I wouldn't sell my house and try to move up there because it's not cheap up there. And the city that I live in, I really don't live in Los Angeles. But anyway, that's what's the closest.

[Jade Warshaw]

Yeah, sure.

[Caller]

I feel, I feel really safe where I'm at. I've lived in this house 58 years. I was 20 when I moved in. It's all I know, you know, and I feel very safe here. I think that's important, you know, at my age.

[Jade Warshaw]

It is.

[Caller]

Yeah.

[Jade Warshaw]

I just want to, I want to give you options, because right now you're in a corner. And so Ken I mean, options are your friend here.

[Ken Coleman]

As I'm listening, I just, I'm wondering if. Let's just, let's have some fun with this for a second. If you could snap your fingers and generate X amount of dollars every month and that would just. We're not talking crazy, we're talking just. It would take care. It would give you a lot more breathing.

[Jade Warshaw]

$500 would change.

[Ken Coleman]

What is that number? Is it $500? Is it a little bit more than that? What's a number that if you could just manufacture today, every month, you'd go, I am so. I got plenty of margin and I am feeling safe.

[Caller]

You know, it would be. It'd be hard for me to come up with a number because I'm just so used to not having any extra money, I guess. I did have a job for a while and it was $25 now. I helped a lady out, took her to her errands, you know, did things like that. But she moved away. So that.

[Ken Coleman]

But, but here's the deal. You just. You know what? I want you to give me a number. You sound like a politician on a Sunday morning show. You can give me a straight answer. You could do it. Give me, give me a real number. Think about your finances right now and think about how tight it is and.

[Jade Warshaw]

Don'T think about how you're going to make it yet.

[Ken Coleman]

Yeah, yeah, yeah, that's right. I'm. I'm taking you on an exercise. What's the number?

[Caller]

Okay, maybe 700.

[Ken Coleman]

$700. All right, I want you.

[Caller]

I just pick that, you know, I don't know.

[Jade Warshaw]

That's good.

[Ken Coleman]

Okay, but go, go. No, let's go. Let's find out, like go over your budget and come up with another number after the phone call. That's fine. I'm just walking you through an exercise. Here's what happens when you're 78. And God bless you. You sound like you're 58. Okay. Yeah, but here's the deal. You've also outed yourself on this call that you did have a job that was right in your alley, right in your lane. Taking care of an older lady, making 25 bucks an hour if she existed. Other things like that exist. I actually think you do not have to go out and go get a job, a traditional job, but I think the non traditional jobs, I can't. I would tell you, I bet you there's couples all around you that cannot afford daycare.

[Jade Warshaw]

That's what I'm thinking.

[Ken Coleman]

And they're paying three or four thousand Dollars a month in daycare. And if they paid you $2,000 a month, you would lose loving mind.

[Jade Warshaw]

If you lived by me, I would pay you to be there. When my kids get home from school.

[Ken Coleman]

They'Re looking for somebody who can do some light laundry, meal prepping and planning. You don't have to work like a dog. But I just think that you're not seeing that and you need to start seeing that. And all those fried green tomatoes that you're having lunch with, they know everybody. That's all they do is talk. They know everybody and everybody's business.

[Jade Warshaw]

You need to go on care.com I.

[Ken Coleman]

Promise you there's a another option.

[Jade Warshaw]

Yeah, go on care.com and you can provide those types of services.

[Ken Coleman]

I believe. I believe that you could be bringing in 1500 to $2500 a month very soon and that would change your life, would it not? Okay, then get after.

[Caller]

Thank you so much.

[Ken Coleman]

Get busy.

[Jade Warshaw]

We're waiting for you, Jesse. You got it, girl.

[Ken Coleman]

I'm telling you, call the fried green tomatoes and get them on the horn. They're on Facebook. They're talking everybody. She'll have jobs coming out her ears, man. Listen, guys, I've heard just about every excuse for why folks think they can't get ahead with money. So let's go ahead and settle this right now. You get the final say on what happens with your money.

[Jade Warshaw]

Money.

[Ken Coleman]

That's why you have to start telling your money where to go so you can stop wondering where it went. So if you're going to start winning.

[Jade Warshaw]

With money, you have to get on a budget.

[Ken Coleman]

The easiest way to get started and stick to it is with the EveryDollar budget app. It'll help you make a plan for every single dollar coming in and every single dollar going out every single month. And guess what? It's free. So no, excuse me, excuses. Download every dollar in the App Store or Google Play today. This is the Ramsey show, where America hangs out to have a conversation about their money, their profession and their relationships. Phone number to jump in is, 882-552-5888 825-5225. Alongside the incomparable Jade Warshaw. I'm Ken Coleman. Let's get right to San Bernardino, California. By the way, one of my favorite cities to recite.

[Jade Warshaw]

It sounds like the Beach Boys.

[Ken Coleman]

Yeah, it's fun to say. San Bernardino makes me feel good. I don't know why Mary is there. Mary, how can we help?

[Caller]

Hi, guys. Thank you for taking my call.

[Ken Coleman]

Sure.

[Caller]

So I've Been listening to the show for a whole month, and this is my first month doing a budget. Yes. And now I am trying to attack my debt, but I have about $9,000 sitting in collections and $10,000 in active student loan debt. This morning I got a call from debit card company collector. It's $6,000, and he was threatening to sue me. And like I said, I've been listening to the show, but I don't know if what I did was right. I just listened to an episode of Dave Ramsey telling them that, you know, I'm going to file bankruptcy. Leave me alone. And that's what I did. I was like, my financial advisor told me that I might file bankruptcy. So if I do, you'll get the call. Remove me off your call list. And I hung up. But I was. I'm really scared. I don't know if that was the right thing to do.

[Jade Warshaw]

I love. I love you.

[Ken Coleman]

Yes.

[Jade Warshaw]

Good for you.

[Ken Coleman]

I love it. My financial advisor, she was like, I'm.

[Jade Warshaw]

Gonna file bankruptcy, and then, like, hung it up. Good for you.

[Ken Coleman]

Yeah, yeah.

[Jade Warshaw]

I believe Financial advisor.

[Ken Coleman]

Coach her up. Now you got another financial advisor. All right, Jade, she got. Now she's a little scared, and I understand because some punk with a credit card collection agency called her up and played the script. Talk her through it, Coach.

[Jade Warshaw]

All right. You did the right thing. What you essentially told them. Them is, I don't have the money that you're asking for, and I'm broke. And so if you think you're going to get that money from me, you're wrong. That's essentially what you told them. Right. So now you're causing them to sweat a little bit, and you're basically saying, yeah, if you're going to sue me, sue me. And credit card companies do sometimes sue you, but it takes a long time to get to that step. So let's talk about where you are now and where we're going to prioritize this, because the 9,000 in collection, I would say, you know, if that's your smallest debt, then that's what we're going to tackle first. And that's just us making a deal, right?

[Caller]

Yeah.

[Jade Warshaw]

So how much cash do you have?

[Caller]

So right now I. My budget is putting me at a surplus of $261 a month.

[Jade Warshaw]

Okay, great. And so. And there's no other savings anywhere else, right?

[Caller]

Well, yes, I have the baby step one.

[Jade Warshaw]

Okay. Yeah. Beside. Beyond that. Okay, so you've got baby step one. That's good. The only. I just want to check the Only Debt is a 9,000, the collection and the 10,000 of student loans.

[Caller]

That's correct. And I actually paid yesterday $445 of the 9,000 in collections through a money order. And I did the tracking also. I listened to that advice from your show, but I don't know if I did that right. I sent him an order out to them.

[Jade Warshaw]

That's great that you did that. I would stop doing that because at this point I would stack up money so that you can make them an art offer. Right. So they'll see, hey, you're not getting this money because I'm broke. And the next time I talk to you, it's going to be when I have $5,000. And I'm going to say, this is the only. You've been blowing me up and blowing me up and blowing me up. This is the only money I have. And you're going to make a deal with me because this debt is, you know, eight, eight years old. And this is all I have. And so we're going to set up a payment and a, in a, in a plan that this $5,000 is going to make this pay paid in full today and you're going to send me it in writing and that's how we're going to do this. Does that make sense?

[Caller]

Okay. Yes. So you're saying it's okay to settle, not pay in full.

[Jade Warshaw]

Yes. That is what you do with debt and collection. You settle it. Because they've already sold it off. They've already sold it off for pennies on the dollar. They're never going to get the fullness of what this debt was. And so whatever they get now is just ice cream on top of a not very good brownie.

[Ken Coleman]

Oh, man. All of a sudden I am hungry.

[Jade Warshaw]

I'm sorry. That's what it is.

[Ken Coleman]

Wow. It's true. I mean, Mary, you're not, you're not a bad guy here. Right.

[Jade Warshaw]

You're just sticking up for yourself.

[Ken Coleman]

Yeah. You're just doing the thing. And, and now you. And, and you know, you got to deal with all the negative emotions that come with this. But on the other side of this, you're free because you're already making great progress, only having been dialed in for a month.

[Caller]

Right, right. Yes, I am trying to be. And I've never spoken to anybody like that on the phone, so I was terrified after I.

[Jade Warshaw]

Listen, I, I love it. It got your blood pumping.

[Ken Coleman]

Yeah. You know, Mary's probably a very sweet, kind, precious person. And she was like, is this person.

[Jade Warshaw]

Uh huh.

[Ken Coleman]

And it freaked you out a little bit.

[Caller]

Yes, it did.

[Ken Coleman]

But didn't it feel good a little bit?

[Caller]

Yes, it did. It actually did. Because after I said, remove my phone number, I don't know. Something broke in the spirit, I believe. And I'm like, if another debt collector calls me right now, I'm gonna see this.

[Jade Warshaw]

Come on.

[Caller]

This is great.

[Jade Warshaw]

This is excellent.

[Ken Coleman]

Mary, you're my favorite person on the show today. Don't tell any other callers that. But that is my favorite line.

[Jade Warshaw]

Something broke in the spirit. She good?

[Ken Coleman]

Yeah. That's really good. Well, hang in there, kiddo. What can we give her? What can we do for her? Let's give her.

[Jade Warshaw]

Let's. Let's make sure she's got. Do you have every dollar, Mary?

[Caller]

No, I don't.

[Jade Warshaw]

All right, we're gonna give you the premium version of every dollar. And every dollar is better than ever, and it's continuing to get better than ever. So we'll make sure that you get that for free. And let's give her, hey, what are you making every month? Because you said you only have $261 of margin, so what are you making? And that'll. That'll inform my next free giveaway.

[Caller]

Oh, I'm. I'm making $2,040 a month.

[Ken Coleman]

All right. What do you do for a living?

[Caller]

So I just started my own nutrition consultant and meal prep business, which is what I went to school for and got the loan for each week. I have clients, and then I meal prep for them.

[Jade Warshaw]

Wow, what a cool business. That's right up my alley. Okay, we're going to give you build a business you love. That's Dave Ramsey's new book on how to build a business from scratch, which is essentially what you're doing.

[Ken Coleman]

And I'm going to throw in, since we're. This is so fun. Like, I'm sitting next to Jade Claus over here.

[Jade Warshaw]

That's what they call me.

[Ken Coleman]

That's what they call me. How about proximity principle, which is a fun little concept. It's one of my books about just the right people in the right places. And I think along with Dave's book on building a great business, the idea of making great connections, being around the right people in the right place is going to lead you to some tremendous opportunities. You grow your business because you are a small business. Woe man. Watch out. Love that Mary is coming after you. So hang on the line. We want to give that to you because you're. You're just. You're. You're welcome to the club.

[Jade Warshaw]

So proud of you, Mary.

[Ken Coleman]

Yeah. So fun. Okay.

[Jade Warshaw]

She let the roar out.

[Ken Coleman]

She did. And I want to come back to you on that. When you hear that, translate that to other people who are in a very similar situation as her, analyze what happened there and what do they need to take away from that?

[Jade Warshaw]

I think that takeaway. That's such a good question, Ken. I think the takeaway is sometimes we limit ourselves and we kind of think, you know, when we talk about this thing of getting out of debt and we're giving all of these pieces of advice and you should do this and do this and do this. It feels overwhelming. I can't do something like that. I can't. I don't have that inside of me. And I think what Mary tapped into is she does have it inside of her. And I say all the time that you're capable of far more than you ever thought possible. Yeah, you really, really are. You just have to nudge it. And when you do, Ken, when you just get the right in there, you can't take it back.

[Ken Coleman]

Yeah, she.

[Jade Warshaw]

She tapped into a piece of herself. She's never going to be able to go back to the old Mary because now I agree. She's like, I don't let people walk all over me anymore.

[Ken Coleman]

I got a Katy Perry song in my head. And you started talking.

[Jade Warshaw]

Oh, yeah. I got the eye of the tiger of fire. Yeah, that's good.

[Ken Coleman]

Dancing through the fire. Man, I got goosebumps because we heard Mary roar.

[Jade Warshaw]

That's right.

[Ken Coleman]

And I thought that was great. Mary, keep on roaring out there. Hang on the line. We got some freebies. All courtesy of Jade Claus. All right, let's cut to the chase. It's easy to get discouraged about crazy.

[Jade Warshaw]

House prices and interest rates.

[Ken Coleman]

But when you have the right real.

[Jade Warshaw]

Estate agent to help you buy and.

[Ken Coleman]

Sell the right way, you'll have confidence to make smart decisions. Ramsey trusted agents aren't just experts who guide you through buying or selling. They're people you can trust to have your back. From the first call to closing day. Find a Ramsey trusted agent near [e-mail] agent. That's ramseysolutions.com Lois is up next in Memphis, Tennessee. Lois, how can we help?

[Caller]

Hi. So my question is, before we got married, my husband took out a two year lease on a home. And in the middle of that term, we got married. We moved in together. The lease is now up, but when he moved out of the home, he allowed his mother and brother to move into the home. And. And now that. Now that the lease is up for renewal, they're asking him to extend it. And I'm telling him that I think it's not a good financial decision for our family to. For him to continue leasing his name and it puts a financial obligation on us. But his mother is a widow and so I just need some advice on kind of how to handle this situation. And what would be the best thing.

[Ken Coleman]

To do are the mother and brother mother both equally paying him.

[Caller]

So the mother has no income. So no payment there. And the brother has inconsistent income. He's somewhat self employed but he also works sometimes for my husband's company.

[Ken Coleman]

So they're basically. Sounds like there are some months where they don't pay or not much and he covers it.

[Caller]

Exactly.

[Ken Coleman]

Oh boy. And now that tells me. That tells me what. What's going on here. And he doesn't want to. He wants to renew because he feels like he's got to take care of him.

[Caller]

Yes.

[Ken Coleman]

Have you had this conversation with him?

[Caller]

Yes.

[Ken Coleman]

And how it go.

[Caller]

I've even offered. Well, I've offered that his mother could move in with us. Our home is not that big but I think it's the smartest financial decision for us to make that we can all sacrifice if we live together at this point. And she' elderly and just had a knee replacement.

[Ken Coleman]

What did he say?

[Caller]

He thinks that his mother won't be very happy having to give up her own space and. But it's not concerned about that.

[Ken Coleman]

It's not her space.

[Caller]

Yes, but she feels like she has her own space and she won't if we make that change.

[Jade Warshaw]

Okay.

[Caller]

But also.

[Jade Warshaw]

But he's more concerned about how. He's more concerned about how his mom is going to feel than how you're feeling. That's what I'm hearing.

[Caller]

Very torn. He's very torn at this point. And so he's having difficulty making the decision. But I'm worried if he delays it, he's going to go with the easier option which would probably be to renew. But the harder option long term.

[Jade Warshaw]

How much does the lease cost every month?

[Caller]

It costs between 22 to $2,700 a month.

[Jade Warshaw]

That's a big range. Why does it range?

[Caller]

Because the utilities are included.

[Jade Warshaw]

Got. Gosh. Wow. Okay.

[Ken Coleman]

That is steep. What yalls combined income.

[Caller]

So I'm a stay at home mom and I have a little bit of side money but I don't really count that as our main.

[Ken Coleman]

What is his and what's his income?

[Caller]

And his is around 200,000 but he has A significant amount of debt that takes pretty much all of his income every month.

[Jade Warshaw]

What's the debt?

[Ken Coleman]

How. Okay, wow. So what happens? Okay, I'll get. I'm going to. What happens when the brother doesn't pay the lease? He's having to come up with the difference.

[Caller]

Correct, correct.

[Ken Coleman]

And you guys don't have the money if the debt payments are covering everything else, plus your basics. So how does he make due when he has to cover the difference on the, the lease?

[Caller]

It's just month to month moving things around. To be honest, it's. It's really tight, but it's not.

[Jade Warshaw]

Here. Here's the thing. I think from an in I'm going to say this, and because I think it's the right thing. Your. Your husband can't afford to help. And he's putting your family at stake and at risk financially by doing this. And so in that. That way, his priorities are out of balance because he's now said, I'm prioritizing brother, who is perfectly capable of going out and making money on his own. I'm prioritizing brother and my mom over me taking care of my family.

[Ken Coleman]

That's right.

[Jade Warshaw]

Meaning I'm taking care of my debts, making sure there's food on my table first so that then I maybe could reach over and help later. Does that make sense? So his priorities are out of whack. I agree with you that he's concerned, confused. Hopefully you can help him see that the first priority here is us and our family.

[Ken Coleman]

What's the most you guys have had to cover in the difference between the lease payment, when he's had to step up and help out to actually cover it. What's the most. Do you have an idea?

[Caller]

I mean, to be honest, there's a lot of blurred lines because, like, his brother will work for his company sometimes, and so he may work for him a few days, and then he counts that as a contribution to the rent.

[Jade Warshaw]

Oh, wow.

[Ken Coleman]

See, that's wacky. Okay, Jay, to walk through the debt stuff, what you guys gotta do. But I'll tell you what needs to happen today. He needs to tell mom the jig is up. Like, this is done. And so you're moving in with us, Mom. And the reason you're moving in with us is because you can't live anywhere else.

[Jade Warshaw]

You can't afford it. I can't afford it.

[Ken Coleman]

I can't afford to do this. The brother is fine. The brother can work for him or go work for somebody else. The brother's a big boy. Not going to like it. She'll get over it. She doesn't have any options. But that needs to happen. Step one, because that's going to free up some cash. True or false?

[Caller]

True.

[Ken Coleman]

Okay, so that's what you need to then attack.

[Jade Warshaw]

Yes. Yeah. Ken is. What Ken is saying is exactly right. That's going to clear up the financial aspect of this. It's going to also clear up some like emotional drama because this is a month to month drama. It feels like every month it's, are they going to pay? Are they not going to pay? How much of, you know, my work went towards the rent payment? Like this is a lot. So doing what Ken said I think is going to clear up, you know, give you a lot of emotional and financial clarity there. And then it's about attacking you guys debt. I heard you say the words his debt and his income and it made my ears perk up and I wondered about that. Is there anything you want to add about that?

[Caller]

Well, we just recently got married and we have two very different. We came from two different backgrounds as far as our approach towards debt. And I lived a very conservative life and so I was able to pay off pretty much everything that I owed except for the home that I live in. And he came into the marriage with a significant amount of debt both before we got married.

[Jade Warshaw]

Okay, and are you on board with viewing that as our debt and not just his moving forward?

[Caller]

I do view it as our debt in the marriage aspect, but it's not in my name.

[Jade Warshaw]

Got you. And so what does that mean for you? Like the fact that it's not in your name? How, how does that affect you and how you guys pay?

[Caller]

I want to pay. I want to pay everything off. But I'm also a stay at home mom at this point, so I'm not contributing financially the way, you know, I potentially could be.

[Jade Warshaw]

Got it. So you're just viewing it as he's really, his money is what's really what he's earning is what's going towards paying off this debt. Yeah, okay, I got it. I do think it's worth it as you guys go for forward just to change up that vocabulary a little bit. I think it's going to cause him to feel supported. I think it's going to cause you guys to feel like a unit to really approach this as our income, our debt, our finances and try to try to alleviate that, that individualism that I'm hearing. But yeah, you know, the way this goes, I think you know this, it's smallest to largest. You make Minimum payments on everything and all the extra money goes towards smallest debt. Do you know what the method has been up to this point? Because what I don't want here, I'm saying all this, Lois, because what I don't want is. And can, you know, we hear this all the time. I'm a stay at home mom. He makes the money. It's kind of his debt. My name's not even on it, so I'm not even in the conversation. I can chill over here. And then what happens is 15 years, 20 years later, some indication happens and you realize, oh my gosh, this debt has gotten out of control. And I didn't even know about it because I haven't been diagnosed dialed into our finances because I always just viewed it as his thing. Right. That's what I'm trying to get avoid for you.

[Caller]

Yes, I agree. And since we just recently got married, I feel like it's taking a learning curve for us to really get on that page. I'm very much trying to stay dialed in and in tune and aware of what's going on. But I think he's also having to make an adjustment of how he manages.

[Ken Coleman]

That's right.

[Jade Warshaw]

Then you're on the right track. It is.

[Ken Coleman]

Yeah. You know, last thing I would say is I just think you got to sit with him and not. And you're not an attacking person. You have a sweet spirit. I would keep that spirit. Say, hey, babe, can we talk about this? Because this is new. We just got married. Trying to come together. Two different styles, two different backgrounds. But I want us to win. And gosh, I really think this is what we need to do. And this is going to be tough for a season, but we'll get out of it. They got to approach it that way. See if we can relationship our way through this. All right. If you are sick and tired of scrapping by every month living paycheck to paycheck, you need to join our free budgeting trainings. This month you'll learn step by step how to make a budget. Stick to that budget using every dollar. You're going to get all your biggest budgeting questions answered in the live Q and A. Sign up for free. It's absolutely free. Spots are limited. So you want to move on this. EveryDollar.com webinar EveryDollar.com Amarillo, Texas is where we go now. Janice is there. Janice, how can we help?

[Caller]

Hi.

[Ken Coleman]

Hi.

[Caller]

Talk about turning our finances around in the midst of some medical issues.

[Ken Coleman]

Okay, give us a picture of the medical issues and what it's done to your finances?

[Caller]

Well, my husband's been a cancer patient for about five years now, and then last year I was diagnosed with a brain tumor.

[Ken Coleman]

Oh, no.

[Caller]

And so the sudden onset of the tumor caused me to have an ER visit that just seemed to escalate from there with testing and thus having some combined medical debt between my husband and I. But the majority of it at this point is mine.

[Jade Warshaw]

I'm so sorry.

[Ken Coleman]

Yeah. What's the. What's the current situation that you're dealing with? What are they telling you with the tumor?

[Caller]

Well, I'm actually on the road to go to meet my daughter so that I can go see a neuro oncologist in Dallas area.

[Ken Coleman]

Okay.

[Caller]

But I pulled over to the side of the road so I can make the phone call safely and have this discussion with you.

[Ken Coleman]

Oh, well, thank you for calling us. Okay. What has it done to your finances? Give us. I'm assuming we're talking about a big chunk of debt. And while you're giving us the rundown of debt. Debt, give us your income, your combined income. Total income coming in.

[Caller]

Okay. So we own our home. My. We don't have any debt on any vehicles except for mine, which is about $9,500.

[Ken Coleman]

Okay.

[Caller]

I. I had a vehicle from 2006 to 2023, but the transmission was going bad, and I made the decision to get a new vehicle. I had some money in savings, so I plopped it down on it and. And some of it anyways. And at that time. And now I've been paying as much as I can extra on the payments so I can get it down quicker, but I've got it down to about ninety five hundred dollars. Combined income, I would say, is somewhere around fifty thousand.

[Jade Warshaw]

Okay.

[Caller]

Annually. And.

[Jade Warshaw]

And you own your home outright?

[Caller]

Yes, ma' am.

[Jade Warshaw]

Okay, that's great. Okay, so what do you foresee? You know, what. What do you see coming up? What's the. Give us that picture.

[Caller]

I have the job I have right now. I switched to a different insurance plan because when. When. When I realized that I had this diagnosis, I was on a different insurance plan. Medical insurance, that is. It was an 80 20, and I wound up owing well over $8,000 being on that plan. And so I switched over to an H1 SSA because max out of pocket is 5,000, and then everything's covered. So that would be about $3,000 something dollars less debt every year. Knowing that. Knowing that my neurosurgeon wants me to have scans on my brain every three months.

[Jade Warshaw]

Right. Right. That was a good choice, huh? So you know, you're out of pocket Max now. And what about your husband's condition? How is his being covered? Is he on your insurance? Does he have his own insurance?

[Caller]

No, my husband, my husband is older than I am. He's on Medicare and Social Security.

[Jade Warshaw]

Okay, okay. And what's, I mean, what's the prognosis? Are you going to be able to continue working? Tell us about your working future.

[Caller]

I'm not certain at this, I'm not certain at this point. The most recent discussion I had with my neurosurgeon was that we were going to start radiation, that I'm going to see a neuro on call neurologist. As I stated, my appointment is Monday morning. Our daughter lives in between our home and Dallas. So I'm just going to her and then she's going to drive me the remainder of the way so, you know, someone can be with me at the appointment.

[Jade Warshaw]

Do you have life insurance?

[Caller]

Yes, both of us have life insurance.

[Jade Warshaw]

Okay, so how can we help you today? I feel like there's a lot of tough news to deal with, but in the midst of that, financially you're not in a bad situation. You've got a paid for home, you don't have debt. Except this car that's going to be gone here in a minute. You're both working. You did the right thing with your insurance. You know, you're out of pocket. Max, how much do you have saved? Do you have three to six months of expenses saved?

[Caller]

Yes, ma' am, about $30,000 in savings, about $40,000 invested and then 401k.

[Ken Coleman]

So you started off the call basically 6,000. Okay. And so to Jade's point, you start off the call going, hey, we're struggling to make ends meet now you don't have a lot of income going coming in?

[Caller]

No, what, what I'm, what I'm trying to figure out is I have the medical debt. I have, I was paying monthly payments on it, but they've sent it to collections. They sent two of the four bills to collections and I'm not certain what to do there. And moving forward with my husband's medical debt, you know, should I dip into the savings, should I continue to save? I'm not sure what to do with the money. That would be a debt that's gone to collections. How much is as far as the medical debt?

[Jade Warshaw]

How much is how much medical debt payments.

[Caller]

But I guess it wasn't enough for them because they sent it off.

[Ken Coleman]

How much?

[Caller]

Total?

[Ken Coleman]

Yeah, total Your husband's, because we talked about your debt, but it's. It's our debt, so we got the 9500. We know that. For the car. What is your husband's total medical debt?

[Caller]

My husband's total medical debt is actually much less than mine right now. It's about. It's really only about $1,000.

[Jade Warshaw]

Okay. And how much is your medical debt? Because I thought you said you only have had the car.

[Caller]

I have this about $6,000 in medical debt that went into collections.

[Jade Warshaw]

Okay.

[Ken Coleman]

Okay.

[Caller]

So I'm making payments on it every month, but I. I never received a letter or a phone call or anything saying that it wasn't enough of a monthly payment. And before I knew it, I got a letter in the mail from one that went to collections and then another.

[Jade Warshaw]

That's all right. We're here now. We're here now. You don't have to. I mean, don't beat yourself up for this. This is a lot to manage. So there's $7,000 total of medical debt, Is that correct?

[Caller]

Yes.

[Jade Warshaw]

Okay. And it's all in collections. So the good news is you're gonna.

[Caller]

Not all.

[Ken Coleman]

No, no, just hers.

[Jade Warshaw]

Oh, just yours. Just your 6,000. So what?

[Caller]

Mine? Two. Two out of four of my bills are in collections, and the what's in collections amounts to about 6,000.

[Jade Warshaw]

Okay, so what's in collections of 6,000? What else is there that's not in college collections? Tell me all of it.

[Caller]

Okay. There's about $1,000 of my debt. That's medical debt, rather. That's not in collections. So my husband has about a thousand.

[Jade Warshaw]

Okay, so we got 8,000 total dollars of debt.

[Caller]

Yes.

[Jade Warshaw]

Okay. And going forward. So let's talk about going forward first so we can prevent this from happening again, and then we'll talk about how to pay this off. So going forward, you've got the emergency fund. And I talked to a caller about this earlier. Earlier today. Your emergency fund is for emergencies. Those are things that are unforeseen. Right. You don't see it coming around the corner. It's unexpected. It's completely necessary. Right. And you need to do it today. Right. That. That's an emergency. But then there's things like, I don't know, a medical deductible when you know that you're dealing with health issues that really do fall in line with. More of a sinking fund that. I just keep this out of pocket. Max, you keep his, you keep yours, because you know you're going to hit it. You know you're Going to have to pay it. Think of it as a bill that you know is coming due. And so I'm not sure what the. I think you said yours is 3,000. I'm not sure what that looks like for him with Medicare, but if you can keep that money on hand every single year and you're saving towards it every year, what is it?

[Caller]

Well, minus 5,000 every year. The.

[Jade Warshaw]

Okay.

[Caller]

Out of pocket cost before they cover anything.

[Jade Warshaw]

Okay. And what about him is.

[Caller]

It's much worse. It's over 14,000. He. When he first, when he first signed up for Medicare, he signed up for just your regular Medicare and he didn't sign up for any prescription coverage because he wasn't taking any medications or anything like that. Working, being self employed.

[Jade Warshaw]

Okay.

[Caller]

Have the income at the time, he didn't want to purchase a plan.

[Jade Warshaw]

So stacking up as much as you can, stacking up as much as you can for the two of you, knowing that this is our, our medical fund. Every single year is going to be so important. Even if you can get $10,000 in there. And then in the meantime, I'd reach over and, yeah, I'd pay off the two. The $2,000 that are not in collections, I'd pull that out of your emergency fund, get that done because it's debt. And then the 6,000, I'd offer them 3,000. And I'd pull that out of your emergency fund too, because it's debt. And that will get you out of baby step two back into baby step three.

[Caller]

Foreign.

[Ken Coleman]

Hey, George Camel here with a not so fun fact. Every American Social Security number, including our children's, has been hacked and is now on the dark web. And this is not a scare tactic. This isn't fear mongering. It's a reality that could turn into a nightmare for a lot of people. And believe me, I've been a victim of identity theft, and I would prefer.

[Jade Warshaw]

It never, never happen again.

[Ken Coleman]

Because once the bad guys have your social, it's the lifeblood for all of their activity. Think of all the places you use, your social, your banking, your employer, government offices, utilities, cell phone companies everywhere.

[Jade Warshaw]

And once they've got it, thieves can.

[Ken Coleman]

Open new accounts, drain existing ones, steal payroll, and wreak havoc all in your name. Not cool. And to be real, it's not a matter of if, but when. So you've got to protect yourself with Xander's id, ID theft protection. Zander has all the cyber tools to help, including home title monitoring, full recovery services if you do become a victim. And stolen funds Protection. Not to mention it's the best value on the market. They've been protecting my family for over a decade and I trust them to protect yours, too. So get enrolled today by calling 800-356-4282 or just visit zander.com that's Z-A N--E-R.com Our scripture of the day comes from Proverbs 26, verse 20. Without wood a fire goes out, and without gossip a quarrel dies down. Our quote from Ronald Reagan. I've always believed that a lot of the trouble in the world would disappear if we were talking to each other instead of about each other. Now there's a novel idea. It's what we need in this world, don't we love that. Hannah is up next in Raleigh, North Carolina. Hannah, how can we help?

[Caller]

Hi. Thank you for having me on the show.

[Ken Coleman]

You bet. What's going on today?

[Caller]

So I am looking to change careers. I want to become a financial coach, but I'm kind of having a hard time making that leap. I think it's due to some imposter syndrome. Could you get me some advice?

[Ken Coleman]

Sure. It's my favorite thing to talk about is the imposter syndrome. So let's start with this. Number one, you are not an imposter. An imposter by definition is someone who is fraudulent and taking the identity of somebody else. True or false.

[Caller]

That is true.

[Ken Coleman]

You are not an imposter. Secondly, you don't have a syndrome. You don't have a disease. You have what every person on the planet has. When we consider something new and new is always related to some type of change or challenge. And change and challenge create unknowns, correct?

[Caller]

Yes.

[Ken Coleman]

So what you have is not imposter syndrome. What you have is some fear and some good old fashioned doubt that are tied to the unknown. And the big unknown is if I become a financial coach, will I be be good and will I be successful? Successful being helping people and actually being able to pay my bills. Am I still correct, Hannah?

[Caller]

Absolutely.

[Ken Coleman]

All right, so now we're all on the same page. And welcome to being a human being.

[Jade Warshaw]

I know. That's right.

[Ken Coleman]

So how do we overcome fear and doubt? The answer is we go get the unknown known. Right. So we go, okay, let's go through the ones that I just laid out for you systematically, together. All right, so first thing is, will I be good? You know, will I be able to actually coach people? And so the question becomes, if you go get training on how to be a financial coach, do you believe you have the talent, communication talent, listening skills, connecting skills with people. Do you believe you have what it takes? If you're trained on how to be a good financial coach, can you sit with somebody and actually help them? Yes or no?

[Caller]

Yes. I think so.

[Ken Coleman]

No. No. I don't like that answer. You blew it at the end.

[Jade Warshaw]

Okay.

[Caller]

Yes.

[Ken Coleman]

Yes. I mean, you truly believe that if you're trained properly, you have all the personal skills, Correct?

[Caller]

Yes.

[Jade Warshaw]

Okay, good.

[Ken Coleman]

All right. So next the question is what must be true or what is going to have to happen for me to actually be successful at this as it relates to money. Now, this is where it gets tricky, Jade, because to be a successful financial coach, you are going to have to learn how to prospect just like a salesperson. And you are going to have to learn how to handle the word no. And it sucks. But you have to develop tough skin. You have to hold to your guns to go, I'm worth what I'm going to charge you. And I'm going to have to take a lot of no's in order to get a few yeses. And when I help the people who say yes, they're going to eventually tell other people and I'm going to figure this out. But that part is going to be hard. So the question is not can you do it? The question is, are you willing to do that? And then this is the toughest part. Part Jade. And this is where I want to bring Jade in. Are we. If you are in a married situation, are you in a financial situation to where you can step into that prospecting starting from scratch and slowly build your pipeline to where this is a very successful business. Now, that is not about fear and doubt. That's just good old fashioned common sense. And if you assess Jade well, we're not in a place in our life or financially, we're not in a place where I can do that. Then the answer is not can I be a financial coach, it's when. So I. What did I leave out there? You know what it's like to deal with fear and doubt?

[Jade Warshaw]

I do. You know, Ken, I feel like I've said this many times on the show today, but I feel like you got it, man. I feel like you said it.

[Ken Coleman]

Somebody write that down, please. Write that down.

[Jade Warshaw]

You were right. It's true. I think the. I think the biggest fears come from what we don't know and whether we're going to be able to meet the expectations. Expectation we've set in our minds. Right. Which is some sort of expectation of success. And that's where the fear comes from and you know, only time will tell. But the good news is, here's the good news is if you start it and you suck at it, there's one of two things that can happen. You'll get better because you'll work on it or you'll realize this is not for you and you'll move on to the next thing.

[Ken Coleman]

It's a great point. And to that end, Hannah, you know what I would do. Do you know any financial freedom coaches?

[Caller]

Yes, I know a few.

[Ken Coleman]

Have you sat down with them over tea or you know, lunch or just called them up and said, hey, I want to basically do a high school level research paper interview with you and learn everything about what you do. The good, the bad, the ugly, how long it took. Have you done any of that?

[Caller]

I have done that with one person, but I aspiring to do that with more.

[Ken Coleman]

Great. Now, when you did it with one person, what was your takeaway? What did you really feel and think post conversation with them?

[Caller]

I thought that this would be something that I would be really good at and I have a story that could reach people. But at the same time I look at my circumstances and how they are now. My husband and I are, you know, we're still early on in our financial journey. We're pretty young, we've lived debt free, but you know, we're still on the road to homeownership. I drive a vehicle that's older than I am. Like there might be some external markers where people are like, I don't know if that person's qualified to give me advice. But we've been able to have a lot of peace and purpose and blessing in our lives. But that's not something tangibly that people look at.

[Ken Coleman]

I disagree.

[Caller]

That's where a lot of my doubt has.

[Ken Coleman]

I disagree. You just laid out a list of things. Peace, purpose. I can't remember everything you said, but I went, that's what people are buying. They're buying your ability. Ability to not just guide them to that, but you've modeled it. So who cares how old your car is? Park it two blocks away from where you're meeting them.

[Jade Warshaw]

That's also true. Plus some of the things that you were concerned about as being negatives. Those are things that come with time and you can't jump ahead towards those. I don't live in a paid for house. No, it doesn't negate what I know about paying off a house or how to get there. And a lot of that is because of the people I work around as well. So I mean, I could say, well, I don't live in a paid for house, I can't.

[Ken Coleman]

But the very thing that gives you unique credibility is that you've paid off half a million dollars of debt with your husband and you guys walked the walk.

[Jade Warshaw]

But it's the unique story is what I'm getting to and that's what she has, is you've got your unique story and your unique story has gotten you to where you are and the rest of the gaps you filled in with hard work. Right.

[Ken Coleman]

Do you bring any income in right now, Hannah?

[Caller]

Yes, sir, I do. I actually have been an educator for the past six years in some form or fashion. Three of those were spent in the classroom teaching high school math. And my daughter was born this past year. So I left the classroom and I now work kind of like in an independent role where I piece together tutoring and I bring in a decent income.

[Ken Coleman]

What do you bring in?

[Caller]

I bring about 2,500 in a month working part time.

[Jade Warshaw]

Okay.

[Ken Coleman]

And if that too, if that 2500 went away, how would that impact you guys?

[Caller]

We are kind of transitioning now, so we're saving up to like buy our first home and when our housing cost is a lot less, we'll be able to live on just my husband's income.

[Ken Coleman]

Then I think timing wise, then I want you learning, getting the training cash flowing, any training, certifications, stuff like that. And let's wait until we get the house situation where we want it and then you don't need your income. I wouldn't try to do financial coaching full on now if you want to get a client here or there, yeah, sure. But the fact is you're bringing in 2,500amonth right now and I would continue that because that'll be. You guys will knock that goal out and then you can move. So I think this is seasonal. Although I would dip my toes in the water, I would continue to sit with other financial coaches and come up with your own best practice. Here's how. The best wisdom, the best knowledge, go ahead. And if you can cash flow your training, do that and be ready to go. Maybe pick up a client or two. But you're not trying to replace the 2500 right now. Thoughts on that?

[Jade Warshaw]

I think that's good and truly it's not going to take you long when you do start doing this to replace the 2500 with coaching clients.

[Ken Coleman]

And also I meant to say a person who has taught high school math, this is a shoe in you're no imposter. You could crush being a financial coach to adults who are hungry and actually need it. You've been dealing with hooligans.

[Jade Warshaw]

Pythagorean theorems.

[Ken Coleman]

Are you kidding me? The square root of PI. I don't know what I'm talking about. This is the Ramsey Show.