You Can’t Heal Your Finances Without Changing Your Habits

Summary

The Ramsey Show: “You Can’t Heal Your Finances Without Changing Your Habits”

Episode Date: March 9, 2026
Hosts: Jade Warshaw & Ken Coleman (Dave Ramsey featured in ads/segments)
Podcast Theme:
In this episode, Jade Warshaw and Ken Coleman help callers understand that lasting financial change is rooted in changing habits, not just chasing quick fixes. Through real caller scenarios, they walk listeners through tough financial decisions related to debt, marriage, emergencies, budgeting, and more—consistently urging a return to the proven "baby steps" and strong money boundaries.

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Key Topics and Insights

1. Separation and Protecting Finances in the Face of Addiction

• Caller: Whitney (Nashville, TN)
• Situation: Contemplating separating from husband due to addiction, concerned he’ll repeat past financial misdeeds.
• Advice:
  • Freeze your credit immediately to prevent unauthorized debt (04:49).
  • Reach out to close family for stability and shelter (06:01).
  • Get full-time employment to regain independence (06:42).
  • Notable Quotes:
    • “You have to act as though your husband's not going to get well. We want him to get well. We pray he gets well. But you have to act for your own stability now.” – Ken (06:43)
    • “Divorce isn’t the topic. It’s about safety. Get to a place where you and your children are safe.” – Jade (07:46)

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2. Disagreement over Selling a Motorcycle to Pay Debt

• Caller: Nicole (Ohio)
• Situation: Husband refuses to sell his Harley to pay off his debt, despite $39k in combined debts and marriage counseling.
• Advice:
  • You must get on the same page as spouses for any impactful financial progress.
  • Selling the bike makes sense, but the deeper issue is misalignment on goals, not the asset itself (16:15–18:13).
• Notable Quotes:
  • “Sorry, but the bike isn’t really the issue. The bigger thing is you two aren’t aligned.” – Jade (16:11)
  • “If you really are serious about counseling, bring up that your wife isn’t financially safe.” – Ken (18:13)
  • “I told him, this is one season!” – Nicole (16:08)

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3. Facing Loss of Disability Income with High Debt Load

• Caller: Esteban (Los Angeles, CA)
• Situation: Losing $6k/month disability, still has $44k debt consolidation, $39k car loan, $15k in taxes due, high rent.
• Advice:
  • Sell the car immediately; use savings to cover potential shortfall/replace with a cheap vehicle.
  • Budget ruthlessly—review all living expenses for cuts.
  • Unite household finances emotionally and practically.
• Notable Quotes:
  • “Income is not your problem. It’s the thought that your income isn’t enough; you have to get out of the fear game.” – Ken (26:25)
  • “With what you have, how can you optimize?” – Jade (23:51)

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4. Should I Pay an Old Debt That’s Holding Up My Mortgage?

• Caller: Kendra (Minneapolis, MN)
• Situation: Discovered $500 in collections from old roommate; unsure whether to dispute or pay (potential impact on house purchase).
• Advice:
  • Sometimes, peace of mind is worth the cash—consider just paying if it removes a major hurdle (45:12).
  • Try negotiating the debt down before paying.
• Notable Quotes:
  • “Burning the mental calories isn’t worth it for $500, especially if it blocks your mortgage.” – Jade (45:12)

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5. Deep Debt, Little Income, and Caregiver Responsibilities

• Caller: Regina (Michigan)
• Situation: 44, $30k in debt, caring for aunt without compensation, minimal income from part-time jobs, no food budget.
• Advice:
  • Radical urgency needed—secure full-time work above $15/hr.
  • Consider releasing or sharing caregiving for financial survival.
  • Connect with a Ramsey financial coach for hands-on help.
• Notable Quotes:
  • “If you keep going, you’ll hit a point of no return.” – Jade (57:42)
  • “Something’s not adding up on your hours and your take-home.” – Ken (58:30)

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6. Buying a House with a Boyfriend/Partner—Ramsey Cautions

• Caller: Haley (TX)
• Situation: Realtor/investor wants to buy a house jointly with long-term boyfriend instead of receiving a ring.
• Advice:
  • “Buying a house with a boyfriend is risky business. If you must, buy it alone; don’t mix finances without legal marriage.” – Jade (97:08)
  • If you value independence, own it—don’t create a legal/financial quagmire.
• Notable Quotes:
  • “You’re doing something long-term with someone who—truthfully—you don’t know will be long-term.” – Jade (97:34)
  • “You just want to lock him in with a mortgage!” – Ken (100:06)

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7. Young Couple with Big Savings: Is Now the Time to Buy?

• Caller: Ellie (Louisiana)
• Situation: Newlyweds, 23 & 25, no debt, over $100k saved, want to buy a house but are cautious.
• Advice:
  • Calculate the right mortgage size (no more than 25% take-home pay).
  • Probably need to wait another year to hit optimal down payment.
  • Avoid starting with a duplex as first home due to management headaches and marital stress.
• Notable Quotes:
  • “Everybody wants a house. Nobody wants to deal with the problems of a house.” – Ken (123:57)
  • “Don’t make a simple thing complex.” – Jade (71:59)

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Notable Quotes & Moments

• Jade, on choosing hard work over long-term pain:
  • “What’s really hard is working your whole life and never having anything to show for it. Listen, you’re capable of transforming your situation and living a life of freedom.” (93:41)
• Ken, on conversations about needs vs. wants:
  • “Desire wrapped up in the clothes of a need. This isn’t need, it’s want.” (107:31)
• Callers getting real about the emotional side of finance:
  • “I feel ashamed for needing the money for a bucket list trip.” – Gary, 66, after parents’ gift (114:20)
  • “There’s always a deeper reason people resist the steps—marriage, self-worth, fear.” – Ken, following various debtor calls.
• Memorable Back-and-Forth:
  • Ken repeating: “Would you just let him give you the ring?!” – (101:04)

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Timestamps for Major Segments

• Protecting Finances During Separation/ Addiction: 01:05–09:01
• Disputing/Selling Assets to Pay Debt: 10:13–19:23
• Disability and Debt Crisis: 21:20–31:13
• Debt Collection/Mortgage Issues: 43:13–47:22
• Caregiver with Low Income: 53:30–61:24
• Should You Buy With a Boyfriend: 95:43–104:12
• Justifying a New Car “Need”: 105:53–109:37
• Newlyweds, Home Buying Caution: 116:39–125:38

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Recurring Advice & Ramsey Principles

• Change your behavior, not just your budget.
• Get on the same page with your spouse or partner—money issues are often relationship issues.
• Don’t take on debt to solve a problem rooted in spending or misalignment.
• If you’re “chasing” comfort before stability, you’ll rarely find either.
• Live below your means and prepare for emergencies—the EveryDollar app and budgeting are core.
• Do the boring stuff consistently; boring with money is brilliant. – George (09:01)

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Tone & Style

Down-to-earth, empathetic, sometimes playful but always direct. Ken and Jade never shy from a tough truth, calling out self-deception (in themselves, too) and always pressing for action over excuses.

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For First-Time Listeners

This episode is a classic “tough love” Ramsey show, full of real-life money crises and solutions, ideal for anyone who needs both financial strategies and a nice verbal push to act on them. No matter how “stupid” you’ve been with money, change is possible when you start small—and start today.

Transcript

[Dave Ramsey]

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

[Jade Warshaw]

Normal is broke and common sense is weird. So we're here to help you transform your life and your money. From the Ramsey Network and the Fair Winds Credit Union studio, this is the Ramsey Show. I'm Jade Warshaw. And next to me for a change, Kenneth, that guy Coleman.

[Ken Coleman]

That's right. I'll be delivering UPS packages later today. I've got the full outfit on today. People are a little bit shocked by the monochromatic.

[Jade Warshaw]

Oh, I see what you got going. That's the Doug Heffernoom.

[Ken Coleman]

The audience can't see, but I have matching pants with the shirt and it's throwing people off, Kelly. I don't know why, but it is. So I'm going to moonlight tonight and drop some packages off.

[Jade Warshaw]

I think we'll survive this.

[Ken Coleman]

If you got any packages, let me know. I'll drive them out.

[Jade Warshaw]

You know, the white sneakers and everything. Okay, full up.

[Ken Coleman]

We're excited. We're ready to go today.

[Jade Warshaw]

Yeah, let's do it. Let's get into the phone lines. We've got Whitney, who's in Nashville, Tennessee, right down the street. What's up, Whitney?

[Caller]

Hi. Thanks for taking my call.

[Jade Warshaw]

Yeah, you bet. How can we help?

[Caller]

So I'm trying to figure out how to protect my finances. We.

[Jade Warshaw]

We've.

[Caller]

My husband and I have done Dave Ramsey on and off the program and due to addiction, there has been just some changes. And so if separation is what is about to happen.

[Jade Warshaw]

Oh, man.

[Caller]

Kind of. I'm trying to figure out how to protect finances.

[Jade Warshaw]

Okay, so let's. Since we're separating them. I'm sorry that this is happening. Let's look at it individually. Tell me about how much money you make. Tell me about that side. Because when you say you're separate, separating finances, is he moving out as well? We.

[Caller]

We don't really know. I'm hoping a program to get help kind of thing, but I don't know.

[Jade Warshaw]

Okay, so then, then for now, what I want to ask is you're separating the money, but is he going to give you portions of his paycheck to help pay the home bills?

[Caller]

So if this happened, we wouldn't be able to. I mean, I don't see keeping the home just because of the finances.

[Jade Warshaw]

Okay. Okay.

[Caller]

I was. I've been a stay at home mom, but I've recently started bringing in 2,000amonth just to supplement. And then he makes 65 a year, which, depending on his search, you know, circumstances. I don't know if that's gonna change.

[Jade Warshaw]

Okay, so let's talk about how the separation of money goes. So you're making 2,000amonth?

[Caller]

Yes.

[Jade Warshaw]

Okay, and then tell me, list out like what the monthly bills look like, what's your mortgage every month, you know, tell me some of the big ticket things. Do you have car payments?

[Caller]

No, we're really financially good. We were in the baby steps further on, but we have a mortgage up there and it's 900, 959amonth, I believe.

[Jade Warshaw]

Okay, that's really good. And that's the only debt to speak of?

[Caller]

Yes.

[Jade Warshaw]

Okay, so tell me what you're. Tell me what you need from us today.

[Caller]

I guess like before this has happened and we had debt due to just not know he took out credit cards and a loan that I didn't know about due to fulfilling his addiction. So I'm just in a state of being worried that this is about to happen again. And so I don't know what to do because I don't make enough. I mean, just I've been a stay at home mom and like separating just feels almost impossible.

[Jade Warshaw]

Okay, I see. So you're thinking, let's go back a

[Ken Coleman]

step because you seem uncertain. I mean, is the separation going to happen or not? It feels like there's an asterisk. And I think we can walk through maybe what you should do. But. But I don't know that, that you know, that the separation is absolutely for certain. Am I hearing this right?

[Caller]

I mean, yeah, because I want to believe the best and I'm hoping, but I've had many mentors and counselors and I just feel like what are they telling you? The same thing.

[Ken Coleman]

What are they telling. What are they telling you?

[Caller]

That the patterns are all coming back and they're there.

[Jade Warshaw]

Okay.

[Ken Coleman]

Are you certain that as of right now there is no debt, that he's not accumulated some debt outside of what you know?

[Caller]

As far as I know, I have the credit karma and it hasn't dinged anything on there.

[Ken Coleman]

Okay. So your name right now is clean except for it is on the mortgage. The only thing your name is on that is debt related. Is your mortgage true or false?

[Caller]

Yep.

[Jade Warshaw]

And have you frozen your credit?

[Caller]

No. I've heard about that.

[Jade Warshaw]

Yeah. You need to do that immediately to make sure that he can't pull out any debt and have you as a signer on it and forge that.

[Ken Coleman]

Do you have family, close friends that are near you that if you had to get out and this is not so much a physical emergency, but if you had to you could take the kids and you had a place to kind of land for a bit. Do you have that?

[Caller]

Yes.

[Ken Coleman]

And what are they family or are they just close friends? What are we talking about?

[Caller]

Yes, my. My family lives nearby. My mom and my dad both live nearby.

[Ken Coleman]

Okay. Are they aware of your situation?

[Caller]

Well, honestly, we separated for 10 months before due to this and I guess I headed back in too soon.

[Jade Warshaw]

I thought.

[Caller]

I thought it was better.

[Ken Coleman]

No, but I'm just saying. Are they aware of where you are today?

[Caller]

Not 100%, because I hate. I hate this. I don't hate.

[Ken Coleman]

I understand. But you called, so I'm not tackling the money yet. I'm kind of coming at it really quick to say what I would do if I were you. You called Nastas. I would call both of your parents today and tell them that you're planning to separate and you need a place to land because you've got to have some stability where the $2,000 a month is going to take care of some basics.

[Jade Warshaw]

That's right.

[Ken Coleman]

You're not having to worry about utilities. You're not having to worry about a mortgage or rent. If you're staying with mom or D. That's step one. That gives you some sense of relief because your head and heart are already on fire. Because you want this to still work. And I hear that in your voice. So I'm trying to get you to a place where we eliminate as much fire as we can. And by going to mom or dads and saying, I don't have a timeline, they're not going to be kicking you out. They understand where you're at and you are moving forward as though husband is not going to fix his life. You gotta have that stability. Then the next step would be to go get some full time employment.

[Jade Warshaw]

Yeah.

[Ken Coleman]

Because you have to act as though your husband's not going to get well. We want him to get well. We pray that he gets well. We hope he does counseling with you. But you have called and it felt like when this call started that you were ready to cut bait. And so now we need to act as though that's the move. And we hope and pray that things get healed. But I think I'm trying to just get as super tactical as I can on what I think your next moves are. And Jade called it out. First move is freeze credit. Second move is call mom and dad and find the best place to stay. What are your thoughts?

[Jade Warshaw]

I think that you're right on. I would agree with that. It sounded like the only reason that you haven't exited this circumstance is because you didn't feel the confidence to do that. It didn't seem like it was a question on whether it was the right move or not. It just felt like it was a question on whether you could sustain yourself or not. Is that true?

[Caller]

I mean, morally is definitely a struggle. I'm a Christian. I don't, I just don't. Divorce is not, you know, talking about divorce.

[Jade Warshaw]

We're just talking about getting to a safe place. And, and that's fair. I mean, you've got children.

[Caller]

Yes, we do. We have two small children. And that's really my biggest hesitation over everything.

[Jade Warshaw]

Yeah. So there's. And it's. You can't look at it like that. You have to think of it as getting to a place of safety because you're in an unsafe environment right now. If you're worried about being addiction to the extent that you possibly can't pay your bills and honestly that you're calling into a YouTube show or radio show to get help, that lets me know that you're really in dire straits here. And so for that reason, I would do exactly what Ken said. I would talk with the family. I would freeze your credit today. And the best thing that you can do for yourself is to get in a place of independence where that's getting full time job, full time income, coming in and feeling really confident that if the time, if the time comes when you need to live on your own with these children, that you'll be able to do that. Call us back if you need more help.

[Ken Coleman]

Hey, guys, George here. Listen, 99 times out of 100 when people say, I don't know where my money goes, it's not a math problem, it's a behavior problem. They're not budgeting. Then they're shocked when their bank account hits triple zeros. Well, here's the deal. Winning with money is about doing the boring stuff consistently. And that includes banking someplace that helps you stop guessing with your money, like Fairwinds Credit Union. They're not going to fix your habits. That part's on you. But they do support people who are ready to take control of their money. At Fairwinds, you get a high yield savings account with a great rate to help grow your emergency fund, a checking account that won't nickel and dime you, and up to 10 free savings accounts so you can organize your money on purpose. Because when you stay disciplined, your money gets predictable, manageable, and boring in the best way. So if you're ready for a bank that helps you be intentional. Open your smart Bundle [e-mail] Ramsey and get the Ramsey Beweir debit card to go along with it. That's Fairwinds.org Ramsey insured by the NCUA.

[Jade Warshaw]

All right, back to the phone lines where we have Nicole, who's in Ohio. Nicole, how can we help today?

[Caller]

Hi, I'm super excited. I was calling because I think my husband should sell his Harley and he does not want to.

So I just wanted to go over

the numbers with you guys.

[Ken Coleman]

Is he, by the way, before you tell Jade and I the numbers, is he anywhere nearby?

[Caller]

He's not, but I asked him to call you guys yesterday after I showed him the numbers, and he said, I'm not doing that. But he listens to the show, so I hope he hears it. He's like, okay, okay. And that's why I'm calling him.

[Ken Coleman]

So he hears, go for it.

[Caller]

Cheers from someone else. So together we have $39,000 in debt. We currently do everything separately. I brought it to his attention since I started listening in February that I want us to work to unify that. But we have some things to overcome. We started counseling.

[Jade Warshaw]

Good. That's awesome.

[Caller]

But thank you. His. So his debt is 22,650. His two credit. One credit card is 1351 is 2,300. A personal loan of 6,000. And then his bike is 13. He has told me that his bike is worth around 10, but he has an extra vehicle worth 5. So he would have $2,000 left over that he could throw towards other debt and finish saving the $1,000 emergency fund.

[Jade Warshaw]

Okay, tell us about your situation. Tell us about your side. So he. You laid out his $22,000 of debt and what he could do. Tell us a little bit more about your side.

[Caller]

So I started listening to you guys in February and I'm like, I'm going to get to Zell Intent. And I have and the timing, I've been super blessed. I've gotten my tax refund. So I paid off in the last two weeks, $5,133 in debt.

[Jade Warshaw]

Okay.

[Caller]

And I am down.

[Jade Warshaw]

How much of that was the refund?

[Caller]

90%. And then I got a bonus that I threw towards my last credit.

[Jade Warshaw]

Okay, great. So what's your total debt left at this point just for you?

[Caller]

So my total $16,698.89.

[Jade Warshaw]

Okay, cool. And what's it broken down? What type of debt is it?

[Caller]

I have. We had to get our house slab jack. So I have a loan for that. That we did last year.

[Jade Warshaw]

How much is that personal loan?

[Caller]

It is $7,762.

[Jade Warshaw]

Okay. And then a personal loan. How much is that?

[Caller]

It is 6400.

[Jade Warshaw]

Okay. And then what else?

[Caller]

And then some medical. Medical debt. And I honestly, I've gotten the bills, but I didn't have the money to pay them, so I don't know what the amount is. And I did a rough guess of what I looked at, and I'm thinking around 2500.

[Jade Warshaw]

Oh, 2500. Okay. Where's the other 2500? Or 2 or 3000?

[Caller]

That's all I've got. I've got the 77 for the.

[Jade Warshaw]

Okay, Close enough. Okay, so you're thinking even though you guys are separate, even though your money right now is separate and you guys are working to get it together, you're kind of still like, let's act as though our money's together. And I still have opinions on what you can do. How does he feel about that? Because it could be a moot point if you're saying, I want to combine the money and he's saying, I'm not ready to combine the money. And then you're saying, and by the way, sell your motorcycle. It may not be the best way to get him over to your side, if that makes sense. I agree with you, by the way. Like, let that be known. I. I agree. Sell a motorcycle, do this thing together. All that's right. However, I don't want to attempt to level jump on where you guys are in your relationship, and I certainly wouldn't want you to put a very. Make a very delicate situation even more fragile by going, sell your motorcycle. You know, so.

[Caller]

So he. He has a side job which will. He does landscaping on the side. So he's going to start that in, like, the next couple of weeks. And so his thought is he's just going to take all the side money and throw it at that. And we kind of calculated that. And that would leave him around like 9,000 versus just like 8,300 in, like, one. One quick swoop.

[Jade Warshaw]

Right. But the truth is. But the truth is, if you sell the motorcycle, that side hustle would go towards other debts faster, and you and I both know that.

[Caller]

Right?

[Jade Warshaw]

Okay.

[Caller]

Yes.

[Ken Coleman]

So it's not his primary car. It's not his.

[Caller]

Right.

[Ken Coleman]

I'm sorry, I jumped.

[Caller]

No.

[Ken Coleman]

Is that his primary. Is that his primary mode of transportation, the Harley?

[Caller]

No. In fact, it's not even at our house for storage for the winter.

[Ken Coleman]

What's his name?

[Caller]

His name is Jonathan.

[Ken Coleman]

Jonathan. Jonathan.

[Caller]

Yes?

[Ken Coleman]

Your wife says you're going to watch the show, and I've been listening, and I only have one thing to say. You got to sell the hog.

[Jade Warshaw]

Or at least explain to us why not. No, but I'm just saying if we can understand it.

[Ken Coleman]

No, he has to sell it. That's my position.

[Caller]

He wants. He doesn't want to have to save up to buy anyone because we're going into summer and he wants to be able to write it.

[Ken Coleman]

There's a lot of things that I want to do. There's a lot of things that I want to do that I still cannot afford to do, and that is. I know.

[Caller]

I told him, like, it's one season. It's just one season.

[Jade Warshaw]

I just don't think you guys are on the same page, and I don't even think you're close.

[Ken Coleman]

I agree with that.

[Jade Warshaw]

And I think as long as that's the case, this is not really the issue. The harlot. The bike is just not the issue. I mean, we can keep talking about it. Ken's right. He needs to sell it. You're right. He needs to sell it. I'm right. He needs to sell it, but he doesn't see it that way. So we're chasing our tails on this until you guys get to the deeper reason, which is, number one, how do we get on the same page on what our goals are? Because if we both have the same goals and we both know the reason why, then we can both attack that with the same intensity. So there's something behind this that it's in. At least in his mind, this is more your thing than it is his thing, and he's just kind of going along with your thing. And I think that as long as he views it that way, it's easy for him to go, yeah, I'll do this, but I'm not going to do that. Right, yeah. So there's more conversations that need to be had if you really. Yeah, we want to solve this.

[Caller]

Sorry.

[Jade Warshaw]

No, no, no, go ahead.

[Caller]

Yeah, we have. We have a lot of other, like, issues. When I started listening to the show, Dave said something once, and I'm like, all right, now I can put my finger on it. Like, we fundamentally just disagree on a lot of things. And so. And I kind of took the pin

out of the great grenade and tossed

it into the living room. I'm like, we have to get on the same page, or I don't know what's going to happen, but I cannot live.

[Jade Warshaw]

Can't live like pages anymore.

[Caller]

Like, we. So we have to get on the same page. So he agreed to start counseling, which we've had one session. We have our next one scheduled. So we're making the right steps, I think. But it's kind of like big question mark. Like, are we going to get on the same page?

[Jade Warshaw]

Yeah. I mean, for what it's worth, Jonathan, we think you need to sell the motorcycle. I mean, if he's listening, I definitely think that. But I don't see that happening right away, is what I'm telling you, Nicole. I don't see that happening right away. And you can keep jumping on the mattress, but eventually the mattress is gonna fall through the frame if you do it, is what I think.

[Ken Coleman]

Or, Jonathan, if you are listening and watching and you really do want your marriage to work and you really are serious about what you're about to do in therapy, why don't you pay attention and bring it up yourself in the next session that your wife doesn't feel emotionally safe financially. Since you're watching, I'll tell you. And I think you should sell the Harley because of what it represents.

[Jade Warshaw]

Well, yeah, because he's essentially saying that his Harley Davidson's more important than his marriage and what his wife wants, which

[Ken Coleman]

you don't mind saying. That a problem? Because that's what I'd say to anybody. And I just think this is so important. And you nailed it. The counseling, by the way. Jonathan and Nicole, most important thing you guys can do. And it's so amazing when you can sit down with somebody who's partial. Excuse me. Who is impartial. Thank you. And we share our emotions about what we're feeling because this is a money issue. But you just laid out for us, Nicole, that you guys are not on the same page on a variety of issues. And, you know, when our values aren't aligned, somebody's got to give. And it's my experience that both of you are going to have to give at some point.

[Jade Warshaw]

Yeah, I agree. I think that it's okay to do something out of goodwill towards your spouse.

[Ken Coleman]

I agree.

[Jade Warshaw]

Even if you don't want to. You know what I'm saying?

[Ken Coleman]

There's another Harley down the road.

[Jade Warshaw]

Yes. Yes.

[Ken Coleman]

Probably nicer.

[Jade Warshaw]

Yes.

[Ken Coleman]

You do what we tell you to do.

[Jade Warshaw]

You know, scarcity mentality. He's like, I gotta hold onto this one. No, you don't.

[Dave Ramsey]

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[Ken Coleman]

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[Jade Warshaw]

Thanks for listening to the Ramsey Show. We've got Esteban in Los Angeles, California. Esteban, how can we help today?

[Caller]

Hi, thanks for taking my call. I'm currently on long term disability and I gonna lose it in June 4th and it's about $6,000 of my income and I just want to know what the best way to tackle my debt and adjust to the situation. I don't work. I'm on disability.

[Jade Warshaw]

So you're losing the long term disability money. Are you for sure you're unable to do any type of work going forward?

[Caller]

Yes, I've tried for several years. My condition's bipolar, schizophrenic and like any level of stress causes me to have episodes. And so it's in the opinion of my doctor that I remain not working. So currently I have my VA disability at 4300. I have my SSDI between my daughter and myself, I bring in 5600.

[Jade Warshaw]

Okay.

[Caller]

And then my wife gives me about 1500-1800 dollars.

[Jade Warshaw]

Okay.

[Caller]

Once a month.

[Jade Warshaw]

How much is the VA one?

[Caller]

The VA is 4300.

[Jade Warshaw]

So why in the world do you need more money? That sounds like a nice monthly income. It's over.

[Caller]

It is.

[Jade Warshaw]

Tell me more.

[Caller]

I have, I have that I have $44,000 in consolidation loans.

[Jade Warshaw]

Okay.

[Caller]

And I have a 39,000 car loan that I just refinanced to lower the payment.

[Jade Warshaw]

Okay. I was writing something when you said the debt consolidation. How much is the debt consolidation? 44, 44,000.

[Ken Coleman]

What's the, what's the car worth?

[Caller]

The car is worth anywhere from 31 to 33,000.

[Ken Coleman]

Okay.

[Caller]

I also, I also have a $15,000 tax bill that I got to pay and I have 11,000 dol thousand saved up in my checking Account.

[Jade Warshaw]

Okay, good to know.

[Ken Coleman]

What other debt do you have?

[Caller]

That's it.

[Ken Coleman]

Well, then I, my friend, where's your money going?

[Jade Warshaw]

That's what I need to know.

[Ken Coleman]

You have plenty of income. You have plenty of income to be paying.

[Jade Warshaw]

You have 11. Over $11,000 a month and 11,000 saved. I would not be trying to track down more disability checks. I would be saying, okay, with what I have. How can I optimize that? Because it's pretty. It's. It's a good amount of money a month. So tell us more about your living conditions and who's living with you. What do you pay?

[Caller]

It's my wife. It's my wife and my daughter.

[Jade Warshaw]

Okay.

[Caller]

She goes to daycare. We pay $1,600 a month for three days a week.

[Jade Warshaw]

Okay, before you, before you keep doing that, I need to go back to something because you said my wife gives me fifteen hundred dollars. What does that mean? Is there more money there that we need to know about? And why isn't it all pulled together?

[Caller]

Well, she makes around 3000amonth, but about 1600 goes to daycare. And then the other check, she gets paid bi weekly. She gives it to me to pay off my debt.

[Jade Warshaw]

Understood. Okay. This is an interesting system. All right, so what I want you guys to do from now on is just pull all that money together. Just mentally it's going to help you tackle this a little better. It's totally fine that sixteen hundred dollars of that check goes towards daycare. I'm not saying any different. But if you guys are thinking about that, we're doing this together. It's not her giving you money to pay off your debt. It's us working together to pay off our debt. I think that's gonna just help you emotionally and help your marriage feel like it's on one accord. So that's one piece of kind of. That's one piece of advice here. But let's look at this by the numbers. If I look at the 11,000 you have saved, what I'd be doing this weekend is I'd be posting that car for sale, private value, and then whatever you're able to sell it for, if you can sell it for 33 or 34 or 35 even, then I'd put the other 5,000 with it out of your savings so that you get a clean title on that and actually offload that vehicle. And then I take the other five or six thousand left and I'd buy yourself a cash car because you're not going to work. So you definitely don't need a $39,000 vehicle, you know, sitting in the driveway. I mean, fair enough, right?

[Caller]

That's fair.

[Jade Warshaw]

So that would clear up a lot. Almost half of your debt right away.

[Ken Coleman]

And what's that car payment a month?

[Caller]

657.

[Ken Coleman]

Oh yeah, dude, that's a lot. That's a huge raise. That's 70.$200 plus a year back in your pocket.

[Jade Warshaw]

That's going to make you feel a lot better.

[Ken Coleman]

Can we pause for a second and just, I want to know, are you hearing what we're saying? That we think you have more than enough money to pay this debt off. Do you agree with that or are you still cloudy on that?

[Caller]

I'm just honestly just very used to when I was working, making very high income and so earning less money makes me nervous.

[Ken Coleman]

Okay, but that's not what I asked you. Do you see what we see? That you have plenty of income to pay down this debt?

[Jade Warshaw]

Yes.

[Ken Coleman]

Okay. This is a realization. I understand the fear and I totally understand it. But that's why I want you getting out of the fear game and looking at the real numbers. Okay? And if you sell this car, that's why I asked you what the monthly payment was. I wanted you to register that. All of a sudden if we sell that car in the next week to 10 days, we don't have a $672 car payment. That's even more margin. And are you spending a lot every month?

[Caller]

I just moved to a new apartment. My apartment cost 3,800. I used to spend a lot on DoorDash.

[Ken Coleman]

3,800. Hold on, hold on, hold on. You have a $3,800 a month rent?

[Caller]

Yes.

[Ken Coleman]

Where are you staying?

[Caller]

In an apartment complex in Monterey Park.

[Ken Coleman]

Okay, how could we beat that? That rental price, that feels pretty high to me. And in other words, maybe not for that area, but you could rent somewhere for a lot cheaper. True or false?

[Caller]

True.

[Ken Coleman]

But you just signed a long term lease, so now you're stuck.

[Caller]

Yes.

[Ken Coleman]

Okay, here's what I'm pointing out. You're going to have to adjust your lifestyle, my friend. As you're getting healthy, you're dealing with something that is obviously very debilitating and who knows what your prognosis is. And so I understand that, but so what we need to be doing is adjusting our lifestyle. And the last thing I would have done if I were you is sign up for a place in Marina Del Rey, one of the nicest areas in LA, and pay $3,800 for one person, especially when you're on a fixed income. Now, here's the good news for you. As Jade pointed out, you have plenty of income even though it's fixed, so you can still get out of this. But you have to adjust your lifestyle in the form of a budget. But that's what's going to allow you to overcome this fear are the facts of the numbers. And we can sit here objectively and say, you got plenty of numbers to be able to solve this problem based on the calls we get. This amount of debt versus the income you have is very, very. Yeah, this is a two year.

[Jade Warshaw]

This is a classic two year deal. If you can put. I mean, I don't know how much your wife was willing or not willing to help with this, but I mean, obviously if she was willing to take on some extra hours and you guys did this thing together and if you said to yourself, okay, we, right now we're making $12,000 a month, is there a world where we can put 5,000amonth on this thing? And what type of side hustle would it take to do that? Well, then now you're done in 12 months. You see, that's with you selling the car. And so that's the kind of mindset it's gonna take, is let's create a world where this happens in like 12 to 18 months and work backwards from there. So that's you putting somewhere, anywhere between 35 and 5,000amonth on this. And that's going to take you guys working on this together.

[Caller]

Okay.

[Jade Warshaw]

Do you think there's a world where she says, yeah, we're tackling this together? It's not just me giving you $1,500 out of my paycheck to, quote, pay your debt, but this is our life and something that we're all tackling together.

[Caller]

Yes. I think she's on board.

[Jade Warshaw]

Okay, So I think that's where you guys need to get because freedom. I look at this, Esteban, I gotta tell you, I look at this and I go, oh, yeah, no problem. I don't look at. I'll be honest, there's some calls that come and I'm like, oh, yeah, I don't know, you know, this one's gonna be tight. But I look at your situation, Esteban, I go, oh, my gosh, this could be so much worse. Thank goodness they have all this money coming in. Thank goodness his wife is able to work. And thank goodness, because then my other thought is, I don't know what the nature of your disability, but the child care thing, the fact that she's able to get out and have actual income coming in and maybe there's times when you're with the kids, I don't know. But that really does open her up to be able to put in more hours. If you guys buckle down on this and get on a beans and rice, rice and beans budget, which by the way, we'll send you every dollar in order to do just that. You guys are going to be free in the next 12 months. 5,000 bucks a month. That is the goal and you can do it.

[Ken Coleman]

Hey, let's play a quick game of Would you rather, Would you rather keep overpaying your phone company every month or save 600 bucks a year with no contract and no price hikes ever? Easy answer. That's why I love Boost Mobile. With their low rates, you can unlock up to 600 bucks in savings over the so called big carriers. You can bring your phone, keep your number and pay just 25 bucks a month forever on the unlimited plan because you've got better things to do with your money. So go to boostmobile.com Ramsey to make the switch today. Based on average annual payment of AT&T Verizon and T Mobile customers compared to 12 months on the Boost Mobile Unlimited plan as of January 2026. See website for full detail.

[Dave Ramsey]

Foreign.

[Jade Warshaw]

If you're working the baby steps, the best and fastest way to do it is by using every dollar. It's more than just our budgeting app now. It's the plan built right in. You can track your progress plus get personalized recommendations and coaching for your situation that'll help you free up more money and work the plan even faster. It's like having one of us walking with you every day, showing you the next right side step and holding you accountable. Start every dollar for free today by downloading it in the App Store or Google Play. All right. Cody is in Missouri. Hey Cody, how can we help today?

[Caller]

Hey, thanks so much for taking my call. My brother and I have, we. We have a pretty estranged relationship and it's been going on for six years. He has some explosive outrageous text threads he'll just send and recently he did this before my birthday and then tried to sen a really nice about 4 to $500 gift for my birthday and the family is saying, you know, this is him trying to make up for it and all this and I don't know what to do with it. Anytime he's given a gift in the past, it's always come back against me. So I'm actually, I'd rather send it back, sell it. I don't want it.

[Jade Warshaw]

Tell us about the other times where he's done that and what the repercussion was. What did it look like?

[Caller]

Yeah.

Yeah.

So I've been in the ministry before. He supported our ministry before that's come back. And in ways of him through some really aggressive texts or calls of just saying, remember when I did this for you? I've always supported you. You're never there for me. Or gifts to my kids for their birthdays. That's been used against us. And so this. In no way does it feel like an apology.

[Ken Coleman]

Let me ask this. What does he want in return? Because the first example, you know, I get what he's doing, but what does he want and what has he asked for or implied that he wants as a result of supporting you or sending gifts?

[Caller]

So he will get mad. He's quite a conspiracy theorist. So he will get mad when I don't agree with him on something. And these will be brought up along with, you know, anything else of areas where he supported me. And so my disagreement with him equals. I don't support him on a conspiracy theory.

[Ken Coleman]

So he's not asking for anything. He's just. He's just aggrieved that you don't see eye to eye with him on something. And so he kind of guilt you into this. What he wants. And give me a little attitude here, because I'm digging. He wants you to agree with him. That's what he wants.

[Caller]

Yeah, he. He wants me to. Okay, here's the attitude. He wants me to say, you're right. Look at what you've learned. And because in turn, he said, I've supported your endeavors. Please show me where I'm right. And honestly, he's 42.

[Jade Warshaw]

Is he. Well, mentally? Like, does he. Does he have some. I'm just saying, is there a diagnosis, or do you think there is a lack of diagnosis here?

[Caller]

So that's a great question. And my wife and I actually think he may. He may be bipolar.

[Jade Warshaw]

I was gonna.

[Caller]

If you bring it up to him, it's gonna. It would go bad.

[Ken Coleman]

All right, one more quick dig here. So on this last situation where you. All you started off with is you got this nasty text, and then the nice gift. What precipitated the nasty text?

[Caller]

Okay. It was a series of. When the Epstein files came out, of course, of him saying, look at how right I was. And then. And then it was to me. And his wife was in the text. Her. She actually ended up calling and saying, I'm so sorry that he's doing this. It was f off. You don't know. I mean, it was aggressive.

[Jade Warshaw]

All right?

[Ken Coleman]

So that's because you are playing this game with him, and you are playing a game you cannot win. Okay? And the game is, oh, we're brothers, and we're going to have real honest back and forth on any topic. Could be football, could be politics, could be religion, whatever. And here's my advice, because I have someone in my family that this could happen like this. Not quite as intense, but shades of it. And so I want to address this tactically and then wait, and we can weigh in on the gift thing. What you're going to have to do is realize that you can't fix him, and there's no way you can win this crazy game he's created. So you. So you know what you do? You don't play the game. When he fires off that text about the Epstein stuff and how right he was, instead of, you'd have to betray your integrity. And what you think instead of engaging with a. Well, I don't know, or whatever, just go crazy, isn't it? Wow, fascinating.

[Jade Warshaw]

See, Ken, you're better than me because I would have just been. I never saw the text. I never saw it well again.

[Ken Coleman]

And that's a tactic. But I do think he's unwell. And I think that all this guy cares about deep down is something of an approval from you. But he does. But you don't have to agree with what he says. But I do think if you want to save this relationship and actually try to detangle it, and this is an approach that may or may not work, but I really think it could work. And I just think what you do is you make him feel valued, but you don't have to agree with what he says. And you see what I'm saying? Because you can't win. So just, you know, don't disagree with him on anything. There's a way, by the way, to hear somebody and make them feel seen and heard without rubber stamping what they say. That's true. I have a master's degree in this with someone in my family.

[Jade Warshaw]

Is that what you've been doing with me all this time?

[Ken Coleman]

100%. See what I just did there? So, so. So now on the gift thing, you know what, man? If you want to sell the gift or give it to somebody because it has such a stain to it, I want you to hear me say, I

[Jade Warshaw]

get that you won't win for losing

[Ken Coleman]

with that, but don't return it because that's going to create more of a hornet's nest. You're gonna have to take the high road. And I'm going to give you one other piece of advice that somebody gave me recently. It was about parenting. And I think actually this is going to help you with your brother. And this is what my friend said. He said, you have to be the dock, not the boat. And your brother is going to just be the boat. Whatever the waves are doing at the dock, he's just bouncing up and down with whatever's going on in the news. And somehow he secretly has got this weird, perverted sense of, I need approval from my brother, and he tweaks and he tries to throw things at you that he knows you're not gonna agree with because it's some type of weird game and you gotta be the doc. You're. You are planted in the ground. And so you don't play the game. Don't take the bait.

[Caller]

And is it okay. So on the gift, I will. I will get. I'll just give it away to someone.

[Ken Coleman]

Yeah.

[Caller]

And with a clear conscience. When it comes to engaging, I feel like I've tried, Tried Jade's approach of not responding. I've tried. I've tried arguing years ago. That doesn't go anywhere.

[Jade Warshaw]

Definitely don't do that.

[Ken Coleman]

Did you try my approach?

[Caller]

You know, I have. And it comes off to him, the story he tells himself is that I'm being demeaning or sarcastic, and I'm truly not. If I said, oh, tell me more, man. Thanks for reaching out. Those sort of things, they just. Well, then just feel like, well, then you got mental illness. Yeah.

[Ken Coleman]

Well, then you got to cut him off.

[Jade Warshaw]

Yeah. Or just not engage. Not. Not engage in those texts. When those texts come through that, you know, to Ken's point, you know, it's the bait. Just don't engage. Don't. Just don't. And he probably will fire off more and more and more and more and more. And pretty soon, I think it'll. He'll learn to go, oh, he doesn't respond to these texts. And it will become something that is a new, learned behavior is if I. If I text Cody, he doesn't write back, and he'll probably get mad and send a text cussing you out. How often do you see him in person?

[Caller]

You know, it's. We've actually canceled a trip because one of his outrageous text threads and stuff got dangerous. And so I see him maybe once or twice a year. And even then, there's A sense of the relationships fading.

[Ken Coleman]

Yeah. Does he act this way in person, or is it just all this bravery via text?

[Caller]

It's this bravery via text that tells me a lot.

[Ken Coleman]

Because he doesn't even act that way to you in person.

[Jade Warshaw]

No.

[Caller]

No.

[Jade Warshaw]

Huh.

[Ken Coleman]

Oh, well, then I'd call his bluff. That tells me a little bit. I'd put him in his place. And I mean, tell me more about that.

[Caller]

What would. How would you do that?

[Ken Coleman]

Face to face.

[Jade Warshaw]

Yeah.

[Ken Coleman]

And I'm not talking. I'm not talking like.

[Jade Warshaw]

Like, don't confront, like, in it.

[Ken Coleman]

I'm not talking fisticuffs.

[Jade Warshaw]

Yeah.

[Ken Coleman]

I'm saying look him right in the eye and call his stuff out and go, you try to bully me and manipulate me via tech. If you printed these off and had somebody objective read these, they'd tell you how nuts this is. This needs to stop. Or let's hash it out right now. Let's get the whole family around in the living room and let's hash it out. Let's get it done today. Guarantee he runs like a scalded dog.

[Jade Warshaw]

I might. I'm gonna say this and throw this in. I might actually talk to his wife and find out what he's like at.

[Dave Ramsey]

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[Jade Warshaw]

Welcome back to the Ramsey Show. In the Fair Ones credit union studio, we are taking calls about your life and money. And we have Kendra from Minneapolis, Minnesota on the line. Hey, Kendra. How can Ken and I help you today?

[Caller]

Hello. Thanks for taking the call.

[Jade Warshaw]

Absolutely.

[Caller]

A quick question about debt collection. So I've never been in this situation before. But I just found out through my mortgage lender, actually, that I had something in debt collection. And I'm wondering what sort of, like, legal actions I could take or if I have to pay for it myself.

[Jade Warshaw]

Are you contending that it's not your debt or do you know that it's your debt?

[Caller]

I don't. I believe it's not mine. It's from. As far as I'm aware, it's from 2023, from an apartment I lived at back in. In 2017 with two roommates. And I had signed everything over to them and left the situation a decade ago.

[Jade Warshaw]

Huh.

[Caller]

And I thought they were paying for it. And then I find out just last month that I owe like $500. It's not too much, but that means you're pay for it.

[Jade Warshaw]

Was your name somewhere on the lease that you just didn't know about it? I mean, you had to assign something, I'm guessing if you were a roommate there.

[Caller]

Yes, it was Internet and it was on my roommate's name. I would pay her by check every month, and she would pay for it.

[Jade Warshaw]

Okay, well, they're coming after you. Interesting. I mean, you can contact. How long. How long ago was it, did you say so?

[Caller]

I lived there in 2016-2017.

[Jade Warshaw]

And at no point were you ever. At no point was the. Was it ever under your name.

[Caller]

Nobody haven't been contacted about it at all in the last decade.

[Jade Warshaw]

I mean, you could dispute it. I mean, yeah, you could dispute it with the credit bureaus and say, like, this account doesn't belong to me or, you know, whatever the thing is, and file that dispute. You can do that online and see. See how it comes back.

[Caller]

Okay.

[Jade Warshaw]

But honestly, it's $500 and you're getting ready to buy a house. I don't know that you want to fool with it. I don't. I mean, you get to decide what's easier for you. But can I hate burning the million the mental calories on stuff like that. It's $500. If you have the money and it's keeping you from getting your mortgage going through, I would just pay it and be done.

[Caller]

Okay. I do. Currently, I'm paying for school out of pocket as well as I've had some sort of, like, medical issues, so I'm paying for that out of pocket too. I have the money. I could pay for it. I'm just kind of tight right now.

[Ken Coleman]

Okay, let me ask you this. Let's get creative for a second. By the way, I agree with Jade. Get this out of your life. And even if it were to make life really tight for a bit, you're just going to feel better. However, I do think there's another tactic. Do you. Do you have stuff? How much stuff do you have?

[Caller]

I have been debt free for. Since 2018.

[Ken Coleman]

No, no, I'm asking how much stuff you could sell. I mean, you can sell stuff. My wife is the queen of selling our kids older clothing stuff we got around the house. I'm saying how much stuff. General word here. Do you have that could equal to $500?

[Jade Warshaw]

And honestly, not even 500. You could probably settle it for 250.

[Ken Coleman]

Well, there you go. Now it's even better now. Now, do you have some stuff you could sell, Kendra?

[Caller]

I could.

[Ken Coleman]

Yeah. Like what? Give me two or three items. Let's walk through this real quick. Let's go. What do we got?

[Caller]

Well, I've got an extra TV I could probably sell.

[Jade Warshaw]

Bingo.

[Ken Coleman]

Okay. What else?

[Caller]

I got an extra. Okay. A few game consoles.

[Jade Warshaw]

Love it.

[Ken Coleman]

Great. Let's go

[Caller]

at least.

[Ken Coleman]

Come on.

[Jade Warshaw]

That's it.

[Ken Coleman]

Now how does that feel? As opposed to where we just were 30 seconds ago?

[Caller]

Yeah, that feels a lot better. Just to get out of my.

[Ken Coleman]

Go sell something. Go sell a few somethings tonight and tomorrow and get $500 cash and be done with it.

[Jade Warshaw]

That's what I'm doing. It's not worth it. You can track it down, you can file a claim, you can do all these things. But at the end of the day, depending on how much money it is and what piece of your world financially it truly is, many times I'm just like, settle it, pay it, get it out of your hair.

[Ken Coleman]

Mental calories. You said it so well. When I start thinking about that, that's like my only goal in life right now is to burn mental calories.

[Jade Warshaw]

I know. That's right.

[Ken Coleman]

Like, no, actually to not burn them. Like, I don't want to go burn mental calories.

[Jade Warshaw]

Yes. Make life simple. Give me a huge.

[Ken Coleman]

Calories are tough enough.

[Jade Warshaw]

What's the craziest thing you've sold to get money?

[Dave Ramsey]

Wow.

[Ken Coleman]

I wish Stacy were on the line right now because she's always been the lead dog on this. But I would say we sold. I wouldn't say it's crazy, but I rem. Remember when the kids got out of the double bob? We had a double bob because, you know, our kids that we had three within three years.

[Jade Warshaw]

A double bob.

[Ken Coleman]

So a huge stroller, had the big wheels. It could. You could. You could, like, you could climb a mountain. This stroller it's the name of it. It was called a Bob.

[Jade Warshaw]

Got it.

[Ken Coleman]

We had a double because, you know, Chase and Josie are seven months apart.

[Jade Warshaw]

Yeah, yeah, yeah.

[Ken Coleman]

Well, and then we had one exact same one, but a single for Ty. All that said, one day we realized we don't need these anymore. And they were in high demand because we took care of them. We didn't have them for very long, and we sold all three of those. And the reason I'm saying that is because we made a real nice chunk of change.

[Jade Warshaw]

I bet that's.

[Ken Coleman]

I don't remember what it was, but it was also very emotional. We didn't realize.

[Jade Warshaw]

Oh, yeah. To sell your strollers. That is big. I still have mine up in the attic.

[Ken Coleman]

I don't know if I have a crazy story, but we've sold just about everything.

[Jade Warshaw]

Clothes, shoes, bath mats.

[Ken Coleman]

Sure.

[Jade Warshaw]

And someone bought them on Facebook. Marketplace.

[Ken Coleman]

For how much?

[Jade Warshaw]

$5.

[Ken Coleman]

But see, $5.

[Jade Warshaw]

But I'm just saying, back then, I was selling anything.

[Ken Coleman]

Right.

[Jade Warshaw]

Used bath mats. People. Everything is possible.

[Ken Coleman]

You know, people, people. You've heard Dave. If some of you have not heard Dave Ramsey say this, he's saying it for decades. But he used to say something the effect of, and you'll help me out because you're better at this than I am. Sell so much stuff, the kids think they're next. That's the exact way he said it. Yeah.

[Jade Warshaw]

Yep. You know, and.

[Ken Coleman]

And by the way, he was onto something then. And that's all we're saying.

[Jade Warshaw]

He was onto something then, he's onto something now. Sell so much stuff that kids think they're next. Quote Dave Ramsey. All right, we got Kurt in Georgia. Kurt, we're right up against the clock, but we can help you out. How can we help today?

[Caller]

Yeah, thanks for having me on. Just calling in. So me and my wife been listening to the podcast Dave Ramsey, and we got a car payment we're not sure if we should keep or to do something with.

[Jade Warshaw]

What do you owe on the car and what's it worth?

[Caller]

It's a 2007 Yukon. 17 Yukon Denali. We owe around 31. 32,000. Looks like it's worth around 17 to 22,000.

[Jade Warshaw]

Yikes. Okay. Is that private sale?

[Caller]

No. Actually bought it from a dealer.

[Jade Warshaw]

No, no, no. If you were to sell it private sale, is that the. The private sale value or is that you trading it into a dealership?

[Caller]

Just on. Just on Marketplace. That's just what we're going for.

[Jade Warshaw]

Okay. I would check that on Kelly Blue Book. And just See what it would go. And I also want to know, is this your only debt or how much other debt do you have?

[Caller]

We also have a home and a land payment.

[Jade Warshaw]

Oh, gosh. Okay, well, home is off to the side and land probably is going along with it. If this is your only debt, what do you guys make every year? What do you bring home every month?

[Caller]

Somewhere around five to six thousand a month probably.

[Jade Warshaw]

I mean, what you could do, if you're really trying to offload this, you could say, hey, we're just going to go down to the credit union and we're going to get a loan, a $10,000 loan for the difference and we're going to pay that thing off aggressively. We'd rather pay off 10,000, 32,000. And while you're at it, maybe you get the loan for 5,000 more so you can get a beater cash car with the 5000. And now you're paying off 15,000 from the bank instead of 32,000 from wherever you bought this 2007 vehicle from. Does that make sense?

[Caller]

Actually it does, but we're actually been in this for, we bought it in 2022 and it's at 1375%. So we've already been in this for a few years now. So yeah, we just did not know. We just didn't know if it was. It's not something we can't pay for. It's just something that we don't know if it's right feasible or if it even makes sense to pay for it.

[Jade Warshaw]

Well, that's what I'm saying. You called, you called in asking should we sell it? And I'm saying you can. And I'd rather pay off a $15,000 debt than a $32,000 debt. If you'd like to pay it off it and keep it and you can pay it off in the next year or so, sure, that's fine.

[Dave Ramsey]

Finally, mortgage rates have dropped. And you know what that means. People who've been sitting on the sidelines are about to jump back in to the housing market. So if you've been waiting to buy, this could be your window. But you've got to be prepared and do it the Ramsey way. You need to contact Churchill Mortgage. Their home buyer edge program gives you peace of mind. In a wild market, you can cap your rate for 90 days. So if rates go up, you're protected. If rates go down, Churchill will drop yours automatically. And get this, Churchill will even back your offer with a $10,000 seller guarantee. So if your loan falls through due to financing, the seller still gets paid. That's how confident Churchill is. Plus, when you shop as a Churchill certified home buyer, it's stronger than pre approval. It makes you look like a cash buyer, which makes your offer rise to the top. So don't let this moment pass you by. Get ready now. Go to Churchill Mortgage.com to get started today. That's ChurchillMortgage.com this is a paid advertisement.

[Jade Warshaw]

Homebuyer Edge and seller guarantee are available

[Ken Coleman]

for qualifying borrowers and select loan types only and not available in all states or location. NMLS ID 1591 nmlsconsumeraccess.org/al housing lender.

[Jade Warshaw]

Regina is in Michigan. Regina, you're on the line. How can we help? Hi.

[Caller]

How's everyone doing? Thanks for taking my call.

[Ken Coleman]

Sure.

[Caller]

I got myself in a bit of a conundrum, and I was hoping for some perspective, just a little context. I'm 44, single, and holding down three jobs, one of which I don't get paid for.

[Ken Coleman]

Whoa, stop, stop, stop, stop. I'm confused by the way you started this call. I'm fairly certain you don't have time for a volunteer job, and that's what you just described. So what in the world are you doing with that one?

[Caller]

I've been a caretaker for as long as I can remember, and I'm caring for my auntie.

[Jade Warshaw]

Okay.

[Ken Coleman]

Okay, well, that's different now.

[Jade Warshaw]

That's.

[Ken Coleman]

Now I feel like a big jerk. But that's not the way you said it. You said a third job where you're not getting paid, so now I gotta backtrack everything. That's not. No, it's okay. I'm trying to help America know that I'm not heartless about your aunt. That's all. Okay, so keep going.

[Caller]

So basically, I've been caring for her, and I was getting paid by the state, but I'm no longer getting paid by the state for caring for her.

[Ken Coleman]

Okay.

[Caller]

Me and my mother purchased a house in 2002, and we only have two and a half more years to pay on it. She pays the mortgage, I pay all the utilities. My issue that I'm struggling with right now is I am $30,000 in Deb grand of that is a student loan that I'm not even touching. I haven't paid anything, and it's a queuing interest every single day. And we literally have no food budget. We haven't had a food budget in since 2019, so. I know.

[Jade Warshaw]

So how are you eating? How are you eating?

[Caller]

Well, we have beans and rice, like Dave always says, and I've been getting some assistance from the estate. However, that's going to stop when they find out I have this other job. So that's going to stop pretty soon because I have to report this new job that I got.

[Jade Warshaw]

Right. And that's where I want to camp out. Because you're either below the poverty line to where you do need government assistance for things like food and what have you, or you're earning through that and you are no longer eligible, which means there should be money for things like food and whatnot and what have you. So help me understand how much you're earning from the two jobs that you're currently working.

[Caller]

I get about a thousand and fifty dollars a month.

[Jade Warshaw]

What's the nature of these jobs, Regina?

[Caller]

I'm currently with a janitorial company. I clean for some attorneys.

[Jade Warshaw]

How many hours a week?

[Caller]

25 hours a week, Regina.

[Dave Ramsey]

And then

[Ken Coleman]

it's not a full time job?

[Caller]

No.

[Ken Coleman]

I want to make sure we understand. You're saying with both of these part time jobs you're making $1,000 a month?

[Caller]

Yes.

[Ken Coleman]

Okay.

[Caller]

And I get $15 an hour at each job. So. And then the majority of the time I'm running from appointment to appointment with my auntie. Now here's my, here's my question. Me being 30k in debt, I have contacted my creditors and I have gotten on some, what's it called, the hard hardship.

[Jade Warshaw]

Here's what I want, here's what I want to stop, we got to stop and talk about it and what's going to actually help you move forward today. And it has to all change today because at 44, if you keep going down this route, you're gonna end up in a place, you're gonna hit a point of no return where it's going to be very, very hard. Do you see what I'm saying?

[Caller]

So I'm proud of that.

[Jade Warshaw]

Uh huh. So here's, here's what we need. Ken is gonna help you with this, but we've gotta find work today that's paying a little more than $15 an hour. And we've got to be able to put dedicate full time effort to it. You got to be able to work and it's not you being a bad person, it's not you being mean or anything like that. But you've got to be able to sustain yourself and you simply cannot on a thousand dollars a month. Something that you have in your favor is you're living in a house where it sounds like you're not having to pay rent, you're simply having to pay utilities, which is helpful for you in this season. But we got to get you somewhere where you're making an income.

[Ken Coleman]

Okay, here's what I don't understand. You've got, you, you said you've got two jobs and you're making 15 an hour for both of them. Did I hear that correctly?

[Caller]

That's correct.

[Ken Coleman]

But you're not working 40 hours a week.

[Jade Warshaw]

She's working 23. Right.

[Caller]

And you're 25 at each job. 25 hours a week at each job.

[Ken Coleman]

Okay, well, that's 50 hours. You should be bringing home way more than $1,000 a month. I have you. Okay, what are you, what are you paying? What are you paying in taxes?

[Caller]

Right now I have to pay in on taxes I've been paying in for the past five years.

[Ken Coleman]

How much?

[Caller]

$89 this, this year and I get 82 back from Fed. And then.

[Ken Coleman]

Okay, something's not adding up.

[Jade Warshaw]

Okay, you should be making at least 3,000 bucks a month.

[Ken Coleman]

If 50 hours a week times 15. Okay, I'm just doing simple math here. Okay. That's 750 a week times 4 equals 3,000 gross. There's no way at that income level that you're getting $2,000 a month of taxes taken out. So something's not right. That's where I'm really struggling. Can you explain that?

[Caller]

Maybe my math is hence me having these lower paid jobs, but I have did the every dollar app and I've been trying to stay on top of it, but obviously I always go negative. So I do need some help.

[Ken Coleman]

Well, you, you do. Here's, here's what, here's the challenge. Here's what we're going to do. We're going to put you on hold and Katie's going to get you connected at our gift to a financial coach because we, quite frankly, in the remaining three minutes we have or two minutes, we cannot help you. But high level, I will tell you that you don't have a grasp of your numbers and it's impossible to me. It's impossible for you to only be taking home a thousand bucks a month. Month. Impossible if you're working 50 hours a week. And I don't know how you're working 50 hours a week if you're running auntie around a lot. So something is off. And here's the really sad part. It's actually coming full circle. Someone else is going to have to take care of your aunt. And so I don't even think. And I'm Trying to be as kind as I can, but I think your numbers are off on the hours you're working, too.

[Jade Warshaw]

I think so.

[Ken Coleman]

Because I don't know how you're running in these appointments and working 15, 50 hours a week. I just don't see it. So something's off and you need a coach. And we're going to give it to you as our gift who's going to walk you through what your next steps are. But you need urgency. I want to give it back to Jade because she was going down this lane here. This has got to change today or else she's going to wake up and be 64 and homeless. Yeah, it's that serious.

[Jade Warshaw]

It is that serious. And I'm not saying that to be hopeless. I'm doing it so that you can take advantage of the now. There is always a greater measure of peace that people can get from doing the baby steps. But the truth is there are prime times to get started and there are optimal times to start to where you can get the fullness of the value that the baby steps have to offer, which is what we teach here. And so in this situation, yes, the time to start is now for Regina or anybody who's listening out there because. Because compound interest is your friend and wealth building is part of this. And having the time. Time, Ken, to save money and pay off debt and make those differences, the less time you have, the tougher it can be. And for Regina and anybody else listening who's in a similar situation, it's not too late, but you gotta start today. And just a reminder, when we're talking to folks, it's actually very simple. The equation that we're thinking about. If you want to affect your finances, there's really only two things that you can consider. You have to think about the money going out and the money going in. That's it. So we're either looking at what we spend and saying, hey, I got pulled back on what I spend. That's not her issue, or we're looking at income. There is no magical solve for income other than you going out and getting a job and working hours that actually translate into real cash that is enough in your account count to do the basic things of human life there. Foreign.

[Ken Coleman]

This show is sponsored by Better Help. I am here on this show because some amazing women in my life, like my mentors, my friends, my wife and my mom, because they invested in me, they're all extraordinary. And one of the common themes I've heard from all of the important women in my life Is that between the responsibilities and expectations that the world places on them and the expectations they place on themselves, they are under incredible pressure every day. Women are often courage to overlook their own emotional well being to care for everybody else. Therapy offers a space for women to learn how to navigate those competing expectations, learn how to set healthy boundaries and learn how to communicate what they want and what they need. To do that. I Recommend Better Help. BetterHelp is an online therapy platform that matches you with a licensed therapist based on your goals and preferences. You can message your therapist and schedule sessions right in the platform. And with over 30,000 therapists, they have the right person for you. And if the first therapist isn't the right fit, you can switch anytime at no additional cost. Your emotional well being matters. Find support in therapy. Visit betterhelp.com Ramsey to get 10% off your first month. That's BetterHelp. H E L p.com Ramsey.

[Jade Warshaw]

If you have a simple tax situation like you haven't had any major life changes or big investments, then you need to be using Ramsey Smart Tax. Ramsey Smart Tax is affordable and it keeps filing simple. Plus it has built in support in case you need a little help. Filing early means getting the best deals and you get that tax stress off your shoulders. So as soon as you get to all your. So as soon as you get all your tax documents, you need to go to ramseysolutions.com smarttax and start filing. Ken, I know you don't file your own taxes.

[Ken Coleman]

No, Are you kidding me? I'm a free man. I'd be in jail if I did. Not out of dishonesty, but just incompetence facts.

[Jade Warshaw]

Same.

[Ken Coleman]

So I have a pro tax pro all the way. Love my guy.

[Jade Warshaw]

Love it, love it, love it.

[Ken Coleman]

By the way, I gotta give him a shout out. David, he knows who he is.

[Jade Warshaw]

That's it. You're not.

[Ken Coleman]

I don't wanna.

[Jade Warshaw]

Where can he be found?

[Ken Coleman]

I mean, he listens to the show. Okay, so he's gonna hear this.

[Jade Warshaw]

So you were just doing it for him? Not to help the people find someone they know?

[Ken Coleman]

No, I want him to get a tax pro. But I'm also very grateful for my guy David, and he knows that. That's a shout out.

[Jade Warshaw]

All right, I'm gonna give a shout out to mine.

[Ken Coleman]

Nina, there it is.

[Jade Warshaw]

I can't say more. All right, Kerry. Kerry is in Florida. What's up? Kerry? Save us from ourselves.

[Caller]

I cannot do that.

[Ken Coleman]

That is a true statement.

[Caller]

All right, I'm in South Florida. My name is Carrie. I'm 30 years old. My partner is 39 years old. We have two children, 6 and 10. Our house is sitting at 196 on a 2.875 loan. I was in nursing school, graduated and tried to pay for a lot of it out of pocket. So that drained my savings account, ran out of money. I took out 2 0% interest for the tuition. I paid those both off. But I had to take out student loans as well. FAFSA wasn't paying for it. So I have $35,000 approximately right now in student loan debt. But I have way, way more in credit card debt. 47. I want. Oh, gosh, 47 in credit card. And it gets a little worse. We had a really bad hurricane in 22. A tree went through our roof. We had to get the roof replaced. We had to do, yeah, a lot of new walls. We had to take out a HELOC for 80 because the insurance company didn't want to pay us.

[Jade Warshaw]

Why didn't they pay for that? A hurricane?

[Caller]

We ended up paying 23,000. I think it was a really long process and it involved a public adjuster and they took their percentage of whatever we got. But it was like really turmoil in southwest Florid. So our HELOC right now is sitting at 73,000. I think the payments are roughly $800 a month. Our payments on minimums for the credit cards are just under 15. My mortgage comes out to about 14. And then I have a car payment. It's really crazy. I know we shouldn't do this. I owe 16, I'm paying 625amonth. I do have. I am a bartender, he is a mechanic. We make about 130 a year. Southwest Florida is very seasonal work. So summertime, it gets thinner for us. Winter is more lucrative. So our monthly income does fluctuate anywhere from like 6,000 to $10,000 a month. So I'm a money funneler. I am a save hundred dollar bills in a box kind of person. Because I don't want to not have cash on hand. There's always something happening.

[Ken Coleman]

How much cash do you have?

[Jade Warshaw]

What do you have on hand?

[Caller]

Right Now I have $24,000 in cash. And then I have a separate savings account that's supposed to be dedicated to my kids. And there's 13 in there.

[Jade Warshaw]

What do you mean?

[Ken Coleman]

Yeah, go ahead, Go ahead, Jade.

[Jade Warshaw]

What do you say? What do you mean when you say dedicated to your kids? Is that like college fund? What is that?

[Caller]

I have money in it every month. I am looking to Invest it in something that will grow for them. But I'm not sure what to do, how to do that yet.

[Ken Coleman]

Okay, this is great news.

[Jade Warshaw]

I mean, it's great news.

[Caller]

So it's not great because I am very anxious.

[Jade Warshaw]

I want to ask about the kids money that you have saved real quickly. I just want to make sure this is money that you've put aside, not money that other people gave you for the kids.

[Caller]

Some of it is given. Like I have, I have their birthday gift money separate. So they each probably collectively have $2,000 separate.

[Jade Warshaw]

Okay.

[Caller]

That I just have for them. And then I have this other fund that we have put into that's about 13.

[Jade Warshaw]

Okay. So what I would do is actually 15. What I would do is exactly what you said. Any money that was gifted to them or that they worked hard for or worked for, I would keep that money aside for them because it really is for them. For you. You're not at the phase where you can begin saving for things like kids, college kids, cars, kids, things like that. So for all intents and purposes, that money is now pooled in with money that we can put towards paying off debt. Fair enough.

[Caller]

I have this other. Yes. Right now we're looking at, we're putting out about 89 to 9,000, 8,900 to $9,000 a month between living.

[Ken Coleman]

Okay, so hold on, hold on. Including these debt minimum payments?

[Caller]

Yes. All my student loans, credit cards, the heloc, the mortgage, car insurance.

[Jade Warshaw]

Okay, what's your take home pay off the 130?

[Caller]

It varies. It's going to be a little under one now, maybe a little over one after health insurance and everything gets taken out. We have really high health insurance rates here for some reason.

[Jade Warshaw]

Okay, go ahead.

[Ken Coleman]

Ken, where were you going with telling us that you were going somewhere? I'm not sure that's where we need to go, but I'm curious.

[Caller]

So I have approximately. So what is that? About $40,000? A little more in savings. And I know this is going to sound crazy, but I ideally would like to rent my house out. My husband's mother has property and she has an RV hookup. I don't want to pay my mortgage anymore. I want my house to be rented out for the next two years so that we can change, just lock in and funnel money into all of our debt.

[Ken Coleman]

How much would you make on that?

[Caller]

On renting it out in my area? So if my house is about 14 right now, we can probably go anywhere from 18 to 2100. It's a four bedroom house.

[Ken Coleman]

It's not that much money, though.

[Jade Warshaw]

Yeah. What's your mortgage worth? What's it worth? You owe 196. Did I hear that right?

[Caller]

I owe 169 right now. The original mortgage was like. I bought it in 19. It was, but what do you. It was 198. I think it goes for right now between 3 and 350. But the market, I don't know. I haven't looked into it much.

[Jade Warshaw]

Okay. The sell. Tell me what you feel about the house because I know you're tired of paying it. I know it's been a pain in the butt. It feels like it's been a drain. Do you like the house?

[Caller]

We like the house. We don't want to live here forever. We want, like, honestly.

[Jade Warshaw]

We want a pool. We want.

[Caller]

It was really good when we had, like, my son was born. It was really good. Really open concept.

We don't.

[Jade Warshaw]

But I'm talking about today. I'm talking about today. No one knows if they're going to stay in the house forever. I want you to answer this in a Ken Coleman fashion, which is quick and simple. Like, what's the first thing that comes to mind? Do you like the house or not?

[Caller]

I like the house.

[Jade Warshaw]

Okay. Do you want to stay in the house or not?

[Caller]

I don't need to.

[Jade Warshaw]

Okay, now we're getting somewhere. What about your husband? If you could answer for him, what would he say?

[Caller]

He is the most passive person in the entire world.

[Jade Warshaw]

Okay, here's what I don't want. I don't want you to make a simple thing complex. Complex. Making it complicated would be we're gonna live with mom and do a rent thing and all these other things. I think that if we can go back to the basics here and go, okay, how much cash do we have? You have $40,000 in cash. When we look at the 25 saved and the 15,000 of the quote kids money that's now your money. I'm going back to for now the HELOC because of the amount that's really just going to roll into your mortgage and be part of that. That.

[Ken Coleman]

How many credit cards equal the 47,000 of credit card debt?

[Caller]

I have 11 overall. Three are paid off.

[Ken Coleman]

Good heavens. Okay, so. So the 40,000 goes in the snowball. Do you. Are you familiar with our debt snowball? Okay, so you take all those credit cards and you go smallest to largest, and you start applying the 40,000 up the ladder, if you will. Right. If we got a two.

[Caller]

I started with that method and then I'm like I could pay the car off because the minimums for the little one don't equate to the same as the car. So the car, If I pay 16

[Ken Coleman]

maybe, well you can do it your way. But that's not what we teach and we're trying to help you with momentum and so. And then you could potentially sell the car. It's like, dude, do you want to get out of this mess or not? But the way we teach it is very simple. You called us, you do whatever you want to. But what we would tell you to do is take the 40,000 and you get 1,000 out of that in an emergency fund. That's baby step one, baby step two. We now start taking that, that 39,000 if you will. And we started applying it all the way through and then from there and I, I'm with, well, Jade didn't say this. I don't want to put words in her mouth. I would sell your house if I were you.

[Caller]

Okay?

[Ken Coleman]

Now not as a, you know, get out of dodge easy. You got to accept the mentality that you got yourself in this. But I would sell the house and I'd start fresh and start building a life that is debt free.

[Jade Warshaw]

It's definitely on the table to sell the house. But at the very least, first thing to go is this car at $16,000. Get that, that payment back in your pocket. Then you have the cash to buy something in cash, five or six thousand dollars. Now you're 20 grand in. Throw the rest of that towards the next smallest debt, which looks to be student loans. Do them one by one. You're going to feel the momentum of doing, you know, cuz they're likely broke into little chunks. So do that and before you know it, all that's going to be left is this $47,000 of credit card deb. So if you don't know, ask. Ramsey is our free AI tool that's built and trained on Ramsey proven principles. And today we're going to break down the most asked questions of the week. So you can go in there and type in whatever questions and we kind of look at it and say what seems to be a theme for the week and that's what we're talking about. There are questions around retirement savings, obviously investing. But the most asked question this week was around the topic of emergency funds. Funds. The main question was this. What is the best option to manage and store my emergency fund? So here's an example of the response. Your emergency fund should be liquid and easy to access in the Event of a real emergency, you want to store it in a place where value won't go down when you need it most. So putting it in the stock market is not really a good idea. Next, it tells you a high yield savings account gives you better interest rates than a regular savings account, but still keeps your money safe and available. And then finally, make sure the account is FDIC insured or ncua. If it's a credit union like Fair Winds, we always recommend three to six months of living expenses. But ask Ramsey can help you figure out exactly how much you need in your emergency fund for your specific situation. So you can go on there today to ask your question@ramsey solutions.com or just click the link in the description if you're listening on podcast or YouTube. All right. Jeanette is in Kansas. Jeanette, how can we help today?

[Caller]

Hi, thanks for taking my call. I'm 61 years old. My husband is 70. We are completely debt free. No. We own our home, cars, student loans. We have absolutely no debt. No credit card debt.

[Jade Warshaw]

Awesome.

[Caller]

Got out with Ramsey plan probably 10 years ago. We are looking to build a permanent home. I know he doesn't like the term forever home, but as we're getting older, realize we need everything on one level and just kind of makes you a little bit nervous. It's like, is that a wise thing to do at our age?

[Jade Warshaw]

I mean, are you paying cash for?

[Caller]

Would primarily be cash. We could pay complete cash. If we took money out of our retirement plans, we could go into it debt free. But I don't know if that's wise either. We would have to pull out about 150 to 200.

[Jade Warshaw]

Well, let's talk about it. So what would be the entire spend on the new house? House?

[Caller]

610.

[Jade Warshaw]

610. Okay. And how much cash do you have to put towards that today?

[Caller]

Well, we will sell our current home. We would get about just under 400. Between 350 and 400 for that.

[Jade Warshaw]

Okay.

[Caller]

We have put about 100 already into the house, which would leave a little bit over 100 left on it.

[Jade Warshaw]

Now I see how you got to the 110. So how much is your nesting egg?

[Caller]

Close to 600.

[Jade Warshaw]

Okay. So the idea is, will it. Will it mess us up if we pull out the. The 150 from the 600 nest egg, right? I don't think so. What's the other option? I mean, are you both still working or are you fully, fully out of.

[Caller]

My husband is. My husband is retired air force after 20 years of active duty. And then he just recently retired as a nurse from the va.

[Jade Warshaw]

Okay.

[Caller]

I am still working. I'm a nurse practitioner with my own practice.

[Ken Coleman]

Nice. What are you, what are you guys taking home combined with those benefits plus your salary probably.

[Caller]

Well, the practice does over 200. I pull about 90 from it for a salary.

[Dave Ramsey]

Great.

[Caller]

And then my. So together we probably are close to 200, 180.

[Ken Coleman]

With no debt. I mean, with no debt.

[Caller]

I mean we travel a lot, so we know that's going to really change with, I mean, I love to travel.

[Jade Warshaw]

I mean if you wanted to cash flow this and you're both planning on still working for the next one to two years, I don't see why that wouldn't be really, really a priority. And then whatever's left, you could pull off the nest egg.

[Caller]

Well, you were just talking about compound interest. I would lose all that.

[Jade Warshaw]

No, no, I'm saying that's why, that's

[Ken Coleman]

why Jade's saying don't touch it.

[Jade Warshaw]

I'm saying don't touch it. I'm saying for the next one to two years, like go ahead and start with the 500 that you have have. And then for the next one to two years, let it be your, your deep intention that we're going to throw anything and extra that we can find on this $110,000 mortgage. And then when you're ready to stop working, that nest egg will have continued to grow for the next one to two years. And then you can say, okay, now we feel good about pulling out the 50 or whatever's left on the mortgage and we can go into our non working years with no mortgage.

[Caller]

Okay, it just seemed like, do you take out a mortgage at 60 years of age? Like, okay, well it's not about the age.

[Ken Coleman]

Do it.

[Caller]

But I was just thought, is that, is that why.

[Jade Warshaw]

So it's not about the age because truthfully the money's there, but if you don't have to touch it today, why not? And you're both still working and you're still both making a really good income. And I also have a feeling because of his military. How much is he going to like, what's his retirement going to look like?

[Caller]

Well, we don't know what his Social Security will be. He just turned 70, but he's already

[Ken Coleman]

getting, he's already getting his two retirement checks from both of those other organizations.

[Jade Warshaw]

Right. So my point is you're probably

[Caller]

the VA retirement pension will start next month because he just turned 70. And.

[Jade Warshaw]

Okay, and how much will that be?

[Caller]

That one we don't know. We estimating, according to the Social Security website, his Social Security will be about 3,400. And then his current military retirement is about. About 2,500.

[Jade Warshaw]

Right. Not bad. And then, so my point is, what you'll be pulling from your nest egg is not going to be a crazy sum of money just to keep your month to month going on, especially with such a low mortgage. And to my point, once you get to that point, you can just reach over into the nest egg and pull out the 50 or whatever it is and pull up and pay it off. Okay, how does that feel?

[Caller]

Thank you. That feels better. I just was like, I just, you know, it says that there's wisdom in the council of two or more. And I'm like, okay, I'm not a financial planner and I' this is smart. But we wanted something all one level living. And if we end up in wheelchairs or walkers, that it's. We can stay there.

[Jade Warshaw]

Yeah, absolutely. And go, go and talk with your smartvestor pro and ask him, hey, here's what I was thinking. I called the Ramsey show, here's what they said, and ask what they. What he thinks too. He might say that it feels good for you to pull all the money today. And if, at the end of the day, though, it's got to be something that you feel good about too. And it felt like candidates. That hybrid was where it was at. Yeah.

[Ken Coleman]

If I was in their shoes, I just would not touch that $600,000 retirement because I know that every seven years, based on history, that's going to double.

[Jade Warshaw]

Yeah. If they're making a good rate of return.

[Ken Coleman]

And so I want to get all of that that I can. And with that kind of income, they can be patient and yeah, I wouldn't touch it at all if it were me.

[Jade Warshaw]

They seem like they've got more working years in than what I said. I mean, he's 70, she's 61, so

[Ken Coleman]

she's got a great practice. She could probably pay her more for a year, possibly. You know what I mean? If she, you know, there's some things she can do. Do I grow the business, juice that a little bit. They just have other options to be able to pay for this house.

[Jade Warshaw]

Well, they're in San Diego, but my guess is if they lived on 100 or 120, they'd be done.

[Ken Coleman]

I see where you're going.

[Jade Warshaw]

They'd be done lickety splits.

[Ken Coleman]

And here's what else we know about both of them. They're going to be more than comfortable on just his benefits alone. You just know that.

[Jade Warshaw]

Oh, yeah, yeah. You know, definitely. Definitely. And that's what I was saying. If you're not going to really have to touch it, then. Yeah, there you go. All right, we have some questions on the desk. I like these, Ken. These are from the social medias, by the way.

[Ken Coleman]

Are these like the Krispy Kreme hot now, like fresh off the press?

[Jade Warshaw]

I hope so.

[Ken Coleman]

Okay.

[Jade Warshaw]

All right. If people interact with you on social media, what's the one that you're on and like talking to folks on if they want to know? I want to see Ken for real.

[Ken Coleman]

The only one that you're going to have a chance of getting a real response from me on is Instagram.

[Jade Warshaw]

Me too.

[Ken Coleman]

Yeah.

[Jade Warshaw]

Does that have to do with our age? Because I.

[Ken Coleman]

The kids are older than you. I'm going to say yes. I guess I don't know the answer.

[Jade Warshaw]

Well, to prove, I think it's the.

[Ken Coleman]

I think it's the app. I think I see the messages more than I do on other apps. The DMs.

[Jade Warshaw]

Yeah.

[Ken Coleman]

I feel like they're in my conscience.

[Jade Warshaw]

I don't have the other ones on my phone. The only one I have is Instagram. So for that reason, then let's take the Instagram questions. Oh, okay.

[Ken Coleman]

Oh, that was a setup.

[Jade Warshaw]

Yeah, it was a setup. Okay. Morgan from Instagram said, we just went to a restaurant that had a robot delivering our food.

[Ken Coleman]

Oh, I'd love that.

[Jade Warshaw]

When the bill came, we didn't know if we should leave a tip. What are your thoughts on tipping culture, especially when you primarily interact with robots?

[Ken Coleman]

I have thoughts. So I went to a local place recently where there was a waitress and a robot. And so the waitress came and took our order. I don't mind. I don't say the name of it, but it was a hibachi, you know, where everybody sits around. Okay, so you got a big group. So the waitress comes up, lovely lady, and she's very kind, responsive, gets everybody's order, and she takes off. Five minutes later, here comes the robot with the food. And she kind of followed up to make sure we had drinks the whole time. But the robot, the robot brought us the food. I still tipped her the normal amount. Because of her involvement, all the robot did basically do what the 16 year old kid does at the nice restaurant. Yeah, no, no. I go 20 to 22.

[Jade Warshaw]

And you did even in that scenario. Yeah. Good for you, Ken Coleman. I probably would have done the same thing. I love tipping, but I'm not tipping a robot.

[Ken Coleman]

I don't tip at coffee shops. Beware.

[Jade Warshaw]

Well, what's the difference?

[Ken Coleman]

Coffee shop.

[Jade Warshaw]

Well, welcome back to the Ramsey show. We're here in the Fair Winds Credit Union studio. Can't go. Coleman, are you ready to get to the phone lines yet again?

[Ken Coleman]

I'm ready. Who's up next?

[Jade Warshaw]

Landon? Reno, Nevada. To this day, anytime I think of Reno, I think of the movie sister act.

[Ken Coleman]

Yeah, good call.

[Jade Warshaw]

What's up, Landon?

[Caller]

You guys don't think of Reno, 911, Lieutenant Dangle and all of them.

[Ken Coleman]

Not my genre of television.

[Jade Warshaw]

I do have questions about Lieutenant Dangle.

[Ken Coleman]

Yeah, I don't even know who that is. I'm not sure I would want to.

[Caller]

You know, it's a Comedy Central show, but. Yeah, I know, I know the scene that you're thinking about, Jade, with, with his track by the Reno arch and everything. Yeah, I know what you're talking about.

[Jade Warshaw]

You're one of us. How can we help today?

[Caller]

Oh, definitely, definitely. Hey guys, I got a little predicament. I'm thankful for your call. Ken. I think you're amazing. Jade, I think you're amazing too. Here's my predicament. I'll keep it nice and short. HOA fee went up to $1,008 per month from $450 per month. I, I don't know what to do.

[Ken Coleman]

Does that include a swim up bar right to your front door?

[Caller]

What in the world should.

[Ken Coleman]

Yeah. For that kind of a hike. What's the.

[Caller]

I know, I know. So no perks. Basically what's going on here that we have a special assessment for the time being to do the roads, roofs and all of this stuff. Some, some capital maintenance with the entire complex, but short term.

Yeah.

Well, so it's going to be at least a year and then from here on out, I mean there's no way we're probably going to need to do for, I don't know, three, four years if, if not more. We're probably going to need to get up to, you know, 2, 3, 4 million bucks and we're not there. So it's going to take some time.

[Jade Warshaw]

Wow, I'm sorry, that's not cool.

[Ken Coleman]

So what's your question?

[Caller]

So here's my question. I am going to move out of my house. I'm going to rent for fifteen hundred dollars a month. But now I have the home that I own and basically what I'm kind of going back and forth with is should I rent my house and house out or should I sell my home If I rent my home out I'll basically be cash neutral. I'm not making anything. I'm not losing anything. But then if I were to sell it, I could probably make about 250 in. In equity. So I don't really know what the.

[Ken Coleman]

Come on, that's a no brainer.

[Caller]

Is it a no brainer?

[Jade Warshaw]

Yes.

[Ken Coleman]

You don't want to live in this place. We can tell. Here's why. You can push back. Let me tell you what I hear. I hear a guy. I hear a guy who's right upset about a ridiculous upcharge in HOA. 1000 bucks a month. Are you kidding me? And you're going, I don't love this house that much. I want to get out. You have no attachment to this house. You got $250,000 worth of equity in it, and you're going to get a reasonable rent to kind of reset and figure out what the next step is versus rent it out. And you're saying it's a net net. You're not going to make any money. Well, guess what that means. You're losing money. Because when something breaks on this house and it will, guess who has to fix it?

[Jade Warshaw]

You.

[Ken Coleman]

So now you're going in the hole. So for that reason, as George would say, I'm out.

[Caller]

I'm out. That's funny you say that. So I did the Ask Dave Ramsey thing on the.

[Ken Coleman]

This could be embarrassing. What did that say?

[Caller]

No, it said exactly what you guys said was like, it said, it said, you're bleeding. You're bleeding every month. And I was like, that's exactly something that the host would. Would say. So I, by the way, I think

[Ken Coleman]

the way I said it was far more entertaining than Ask Ramsey, but it's still a great resource. Yeah, it's going to give you the nuts and bolts. Yeah, we're going to give you the style.

[Jade Warshaw]

We're going to give you the style. And in this case, all khaki, apparently.

[Ken Coleman]

Thank you very much.

[Jade Warshaw]

You're welcome. So, Landon, did we solve your problem for you?

[Caller]

No, it seems like it was a pretty easy thing. I mean, that's the way that I was kind of, kind of leaning toward, but. But yeah, you know, it's my first home. It kind of. It kind of sucks to get rid of it. I guess there's a little bit of sentimental there, but it wasn't going to be forever.

[Jade Warshaw]

Anyway, that's my thoughts.

[Ken Coleman]

You know, this is a, this is a great reminder how, how fun Ask Ramsey is for people who can't get through on the show.

[Jade Warshaw]

Yeah.

[Ken Coleman]

Don't have the time. Maybe you're nervous to call us. This guy went to ask Ramsey the AI version of our. Of our show host. Right, I guess is what you can say. And he got the same answer. So just a fun little plug there because it is very helpful to those of you who can't get through. So.

[Jade Warshaw]

Yes, indeed, it is fun stuff.

[Ken Coleman]

There's no universe, Jade, where I'm going to ever deal with a house that I'm not making enormous money on when it comes to rent. In other words, if it's a cash house like all of Dave's houses, that's one thing, but where you're breaking even or barely making money.

[Jade Warshaw]

No, renting by default is never the move. If you're going to have a rental, it's. I set out to have a rental and I chose a specific house for the purposes of rental. Right. Like, let there be some intentionality behind it. All. Right. Maria's in San Diego, California. Maria, how can we help today? Maria, hi.

[Caller]

Thank you so much for taking my call.

[Jade Warshaw]

Yeah, you bet. What's up?

[Caller]

So I am in a bit of a predicament. I started my own business last year, started getting paid in August, but it has been a little bit slower this last couple of months. And with the work that I've had, my projections for income for the next, like, six months are really low. So right now I'm in a position where I'm not sure if I'll be able to make my credit card payment or it's going to be either that or my car.

[Jade Warshaw]

Oh, so tell us what that is in real numbers. What were you bringing in that felt like a good income? Delivery on. And then what is it now?

[Caller]

Yeah. So before when I was in corporate, I was making about 8,000amonth. When I first started my business, it went down to like 6,000 and now I'm looking at like three.

[Jade Warshaw]

Okay, so in August it was like around 6,000. You felt good. Now you're at 3K. How. How many months has it been at 3,000?

[Caller]

Since, like, November.

[Jade Warshaw]

Oh, boy. Okay, so there's a trend here. Have you identified what the issue is, like, why business is down?

[Caller]

Yes. So right now my most consistent source of income was a subcontractor. Subcontractor job that I have. Yeah. Which it's kind of like dependent on how much work the other company has. I just signed a contract with my actual business. We do property services, so we do turnover management. So that should be starting soon, but it is going to be be less paper work. Because right now where I'm at right now it is on the military base. So the pay per gig is a lot better here.

[Jade Warshaw]

Okay. And it's just you, you're the sole employee.

[Caller]

It's myself and my boyfriend, but his, his debt is a lot lower.

[Jade Warshaw]

So the bet, I mean the good news is it's. It's you and your boyfriend and you're working as the work comes in since it's subcontracting. So the best thing that I could do do if I were in your shoes is while I'm working to get more business coming in the door or while there's a down season or whatever the nature of that is, I'm also going to have another job over here on the side that brings in the gap of what I need until you can figure out how to get this back up to making you 6 to 8,000amonth.

[Caller]

Yeah.

[Jade Warshaw]

Okay.

[Caller]

My, my biggest, I guess dilemma right now is three of my credit cards already hit the 30 day lease.

[Jade Warshaw]

Right. Which means you need money.

[Caller]

Yeah.

[Jade Warshaw]

That's all that is. That means, okay, yesterday I needed a job. So that means today your weekend is going to be spent pounding pavement and getting online and finding whatever you can to fill that gap. Because if you don't have dollars and they're calling you, all you can do is say, hey, I don't have any money. Check me next month until this happens. Yeah. So income is the name of the game. I mean, that's the only solution, Kim, what have you.

[Ken Coleman]

I mean, you did such a great job. You don't add much more to a really good song. Except maybe repeat. So there you go.

[Jade Warshaw]

Refrain.

[Ken Coleman]

Thank you. You helped me out. I shouldn't be talking music terms with you.

[Jade Warshaw]

When people hear my story of paying off debt, they say things like, dang, that must have been so hard. Hard. I could never do that. And I tell them, sure you can. It's a short term sacrifice for a long term gain. But do you know what's really hard? Working your whole life and never having anything to show for it. Never having the long term gain. Just feeling broke and stressed and maxed all the time. And sadly, that's the hard that most people choose. Listen, you're capable of transforming your situation and living a life of freedom, but you need the right tools to do it. Like our Every Dollar budget app Investing minutes. It'll build you a step by step plan that's tailored to your money situation. And every day it finds ways you can free up extra money in your budget so you can get rid of your debt and actually build wealth. So make the choice today. Short term sacrifice, long term gain. Choose the tool to help you get it done fast. Download the EveryDoll app and start for free today.

[Ken Coleman]

Foreign.

[Jade Warshaw]

Or selling your home is a big deal. And with all the clickbait headlines and conflicting data that's out there, it's hard to know what's really happening in the housing market. But we're here to help make the latest trends easy to understand. For instance, median home prices dipped a little below 400, 000 last month, which is typical for this time of year. Mortgage rates also dipped to 5.44 in January, down from 6.27 last January, giving buyers some breathing from room. But since rates are unpredictable, the best time to buy is when you're financially ready, not when home prices or rates drop. So to learn more about the housing market trends and get free tools to help you buy or sell with confidence, go to ramseysolutions.com market or click the link in the in the show notes if you're listening on podcast or YouTube. Alrighty then. Haley is in Texas. Haley, you're on the line. How can we help today?

[Caller]

Hi. Y' all are absolutely gonna hate me whenever I tell you what I want to be.

[Jade Warshaw]

Ring.

[Ken Coleman]

No, that's a strong word. Hate is too strong.

[Caller]

I am a realtor investor here in Texas and I have a long term boyfriend and I. We're buying a house together and I told him I didn't want a ring, I wanted a house instead. We've both been married previously and we're coming in together. Obviously we're very Dave Ramsey friendly and we know it. But he is carrying quite a little bit more debt than I am. I am credit card free. He is as well. However, we. I'm just trying to figure out how I want to tackle his debt when we buy the house. After we buy the house.

[Jade Warshaw]

Okay.

[Ken Coleman]

It's not.

[Jade Warshaw]

It's.

[Ken Coleman]

I don't even know. You know what, I'm going to sit back for a second. I'm going to just let you go first.

[Jade Warshaw]

I would just say for the people who are listening for the first time because you said that you were Ramsey friendly and then you went off to say things of such nature that it doesn't even apply.

[Ken Coleman]

You know what's funny about it? You're laughing the whole time and you know, you know what she's about to say, right?

[Jade Warshaw]

I know.

[Ken Coleman]

Why are you laughing about it?

[Caller]

Because honestly, because of the market that we are in and the real estate, the. The way it's going, it would just be too good to pass up this property to where obviously we would want to live in it for.

[Jade Warshaw]

Why don't you just buy it? Why don't you just buy it? How about.

[Caller]

Well, I do. I can buy it myself. But I really want him to be on board with me. And it's not bad debt like we are selling. He has a camper that he was living in and working out of so doing like insurance adjustment across the US So that's really the only one that's a major one. The other one is just a minor amount maybe.

[Jade Warshaw]

Here's the thing. It's not about the debt for me. Me there, there. The debt is part of the home buying equation, don't get me wrong. But in the bigger picture of what you're talking about, if I'm going to address these things by thing that's most on fire to thing that's not as burning as quickly, I would say the first thing is the idea of buying a house with a boyfriend is very, very risky business because it's. You're doing something that should be very longterm with someone that you can't. You really don't know if it's going to be long term. And if because of the. The nature of the mingling of money, it can get really, really messy. And if it doesn't have to be messy, the easier thing to do would just be like, hey, I'm going to buy this house or he's going to buy this house. And then if you so choose that you're going to live together in that way, that's your choice. But at least the monies are clear and free and that is not adding any insult to injury. If this were to go south and not proceed into north.

[Ken Coleman]

Okay, Haley, that's about as good a wor you're going to get on that. What is your response to that? Because I can hear you saying yes to her. But you have a retort. So what is your retort?

[Caller]

So basically with me being an investor, so I do actually show, which I, you know, the banks don't love me, but my CPAs do. You know that always that joke. And so really with qualifying for this property, you know, he shows way more of an income. I mean, it almost doubles. What or triple? Triples what my income is.

[Ken Coleman]

What do you. Okay, pause, pause. What investing do you have? You sound like you're over leveraged.

[Caller]

No, I have 10 rentals. And so basically, how much do you owe?

[Ken Coleman]

How much do you owe on 10 rentals.

[Caller]

I have three loans totaling about 225,000.

[Jade Warshaw]

Okay, that's not as bad as I thought.

[Ken Coleman]

I thought it was gonna be worse.

[Jade Warshaw]

Okay, here's the thing. Here's the thing. I want to give you props because. Because even though you may not have done some of these things the Ramsey way, the fact that you have 10 rentals and you only owe 225, unless these are just really crappy properties, there's something that you've done that you've not gone ridiculously. Do you see what I'm saying? Like, for 10 rentals, Ken, I would think that. I thought for sure you're gonna say a couple million.

[Ken Coleman]

But why wouldn't you buy. No, ma'.

[Caller]

Am.

[Ken Coleman]

No, ma'.

[Jade Warshaw]

Am.

[Ken Coleman]

But why? So what does that really mean? Cause Jade gave you great advice. You buy it yourself.

[Jade Warshaw]

Why wouldn't you?

[Ken Coleman]

At the store? Why wouldn't you? You.

[Jade Warshaw]

You have 10 rentals.

[Caller]

Because. Because I love. Like, I am an investor at heart. So my.

[Jade Warshaw]

Stop.

[Ken Coleman]

That's such a crap answer.

[Jade Warshaw]

You said that three times, and it still didn't.

[Ken Coleman]

What's the real reason? And you said this. Let me tell you what you said. So you said, well, yeah, Jade, you're right. But I want us to be on the same page. I want him to be in it with me. And I even think that's a cop out. So what?

[Caller]

He shows more income. So with our lender, they basically could not.

[Ken Coleman]

I know what the answer is. But you won't tell me. You're trying to play a game on interest rate because.

[Jade Warshaw]

Not that.

[Ken Coleman]

What is it?

[Caller]

I know my lender basically qualified. Said that we would be qualified based on his income. Based off my rent.

[Jade Warshaw]

Haley, you're smart. You know today that it's not a thing of numbers or interest rates or anything like, because, you know, today, hey, if I really wanted this property, I could just sell off one of the ones I have. I could buy it in cash, like, you know that. Are you trying to lock him in?

[Caller]

Yeah, I told him that I turned down a ring for him. Mortgage.

[Ken Coleman]

Yeah, but. Okay, do you know how crazy that sounds? Why don't you just go down to the courthouse, get married? Do you want this guy to be your husband or not?

[Caller]

Yes.

[Ken Coleman]

Okay, well, then why don't you let him give you the ring?

[Caller]

Yeah, that's true.

[Jade Warshaw]

What's the problem? Tell us. For real. For real. It's just us.

[Caller]

I. I have been independent for so long, and so with my, you know, being divorced and having my son, it's been. It's definitely scary.

[Ken Coleman]

Yeah, but you just told us, you just told us you want this guy to be your husband and you were

[Jade Warshaw]

willing to do a more. Here's what I want to frame up for you. You said that you want to be independent and maybe you've been burned before all of those things. Do you understand? And I can. I'll validate for you that that makes sense to me that you would be. You would have some trepidation getting into another relationship. That makes sense. What doesn't make sense is how you are solving it. Because you're creating something that has the ability to be even more dramatic, even more work, like even worse for everybo involved if it were to go south. So why not fuel what you're feeling into a better solve, which is I might not be ready to get married yet. Maybe I'm not.

[Ken Coleman]

Great point.

[Jade Warshaw]

That's okay. If you're not ready to be married

[Ken Coleman]

and Jade's making a great point, if it goes bad, then there's going to be a legal, very clear legal decision on what happens with the house as an asset. But if you guys go in together and there's no legal marriage, then it's a mess. You know this.

[Caller]

Yes. Yeah, I do.

[Ken Coleman]

I don't think we can sell you on our philosophy, but I think if we come to your page. No, no, I'm not trying.

[Jade Warshaw]

We're going to go on your philosophy, which is you're independent.

[Ken Coleman]

So be independent and so be independent or then get legally married.

[Jade Warshaw]

Okay.

[Ken Coleman]

So that this risk that you're afraid of goes away in the sense of it's going to be clean if there is another divorce and nobody wants to think about it, it. But that's your fear. So let's go there. So our. Our position that you should be married and combine finances. While it's coming from a different vantage point than you have, it does meet you where your biggest fear is. So take. Call this guy back. I wish we could get him on the phone and you. Because I would make you tell him that. That you were foolish and that you will take the ring.

[Jade Warshaw]

Yeah.

[Ken Coleman]

And with the ring comes an actual marriage and we're going to do our money together and we're going to dominate.

[Caller]

Yeah.

[Ken Coleman]

We're going to. We're going to heal from our past and we're going to come together and we're going to set out a vision for our life that we both are in lock step on and then we're just going to do this thing.

[Jade Warshaw]

How long have you been together?

[Caller]

Over two years.

[Ken Coleman]

Oh, for heaven's sakes.

[Jade Warshaw]

Two years. And where are you guys living now? Where are you living now?

[Caller]

So we do live part of the time. We're pretty respectful of our kids. So when he has his child and I have mine, we kind of stay apart. But when we don't, we obviously are living with me. But with him traveling, so he's. He's staying a lot more at my property, which is one of my investments that I am doing. So y' all got it.

[Ken Coleman]

I gotta tell you, this is exhausting. And by the way, the whole respect for the kids thing, they know what's happening. Let's stop playing games. Let's get married.

[Jade Warshaw]

All right, Ken, I want with you. I'm with you. I don't think she's ready. That's my hot take of the day.

[Ken Coleman]

And I think you're probably right.

[Jade Warshaw]

I don't think she's ready.

[Ken Coleman]

You're always right.

[Dave Ramsey]

If you've been working the plan, paying off debt, saving and changing your family tree, I'm proud of you. And if you're in baby step four or beyond, it's time to celebrate. The live like no one else Cruise is back. March 14 through 21, 2027. Join the Ramsey personalities and me as we sail to Half Moon Cay, Cozumel, Jamaica and Grand Cayman on ultimate debt. Free vacation cabins will sell out just like last time. Lock in yours with a $600 deposit at ramseysolutions.com events.

[Jade Warshaw]

All right, today's question of the day is brought to you by Y Refi. If defaulted private student loans are wrecking your budget. It's time to deal with them. Y Refi helps you refinance defaulted private student loans with a low fixed rate payment based on your ability to pay so you can stick to a budget and work the plan. Go to yrefi.com Ramsey that's y r e f y.com Ramsey Remember, it may not be available in all states.

[Ken Coleman]

Today's question comes from Jesse in North Dakota. My husband and I are on baby step two, and we'll be paying off our last 10,000 of debt this year. I have a 2014 SUV with three growing boys. We desperately need something bigger. My in laws have said they would buy us a minivan and we could pay them back when we've paid off our debt. The only problem with this offer is their stipulation that we have to purchase a new vehicle. I'm very grateful to have such a generous family, but I have heard you say never to buy a new vehicle. Should we take them up on this offer.

[Dave Ramsey]

No.

[Ken Coleman]

And I also don't buy that three growing boys don't fit in a 2014 SUV.

[Jade Warshaw]

They have very long limbs.

[Ken Coleman]

Yeah. I mean, I don't care if they're all 6ft 2. They can be uncomfortable for the amount of time you're getting them from point A to B. This is one of those things that is just an absolute. It sounds very reasonable in your head, Jessica. But to somebody like me who has no emotion attached to it, I go, well, what kind of SUV were they making in 2014 that three boys can't sit in the back?

[Jade Warshaw]

I don't know, because I'm thinking about when my parents had a 1995 Suburban and we fit in the back. What's the difference?

[Ken Coleman]

So that's the first issue. And a minivan, that's the answer to the three growing boys. What are they, part giant? They're going to fit in the suv. So this just keeps falling apart, and then it gets to. Well, they're going to loan us money. That's family. We'd say, we don't want you to borrow money.

[Jade Warshaw]

But it has to be brand new. Apparently. It has to be brand new now.

[Ken Coleman]

It's got to be brand new. So now they're fleecing you on their conditions. Everything about this is just so wacky. And we have created in our minds this need that is not a need. And we are wrapping a desire up in the clothing of a need. And there's nothing about this that is a need. And my gosh, you have 10,000 to go. Come on, Just finish it. And then walk forward to baby step three. And, you know, and while you're doing that cash flow, the car. Get creative. Creative, but in no way, shape, or form do I have any sympathy for your three growing boys.

[Jade Warshaw]

And how old that could be anything, by the way.

[Ken Coleman]

One of the great hardships of life that every young man needs to go through is to sit in the middle. And I don't think they have a hump anymore.

[Jade Warshaw]

With your knees all folded up in the center.

[Ken Coleman]

Yeah. Do they still have a hump in the middle of the back of these SUVs? That would be great. Because I'm wondering if this SUV has a third row. Sounds like it doesn't. But if it's got a hump in the middle, one of those boys needs to have his. His knees touching his nose.

[Jade Warshaw]

Yeah, that's just. That's a rite of passage. Yeah, it's a rite of passage.

[Ken Coleman]

I mean, don't get me started. I Remember there were times where if we had a friend come with us, one of us would get up in the back window because cars back then. Cars back then, you know what I'm saying, Kelly? Cars back then had enough space that you could get a good sized 10 year old, 11 year old, and you

[Jade Warshaw]

would have been there.

[Ken Coleman]

You would lay the full length and it was great. You could stare like a freak at the car behind.

[Jade Warshaw]

I, I was a part of this. Do you know what I'm talking about?

[Ken Coleman]

I will tell you. On a sunny day, it got kind of warm.

[Jade Warshaw]

Oh, you were sweating, getting carsick in

[Ken Coleman]

that window and just staring at the poor drivers behind you like you're some sort of psychopath. I digress.

[Jade Warshaw]

You called a spade a spade on this. I agree with you wholeheartedly, Ken. Sounds like. What did you say? Desire wrapped up in.

[Ken Coleman]

Oh, this is desire wrapped up in the clothes of a need.

[Jade Warshaw]

Very profound. Very profound.

[Ken Coleman]

Katie, I gotta call my kids and tell them you said that.

[Jade Warshaw]

I will. They won't care.

[Ken Coleman]

They're going to be like, they don't care.

[Jade Warshaw]

All right, Katie's in Ohio. How can we help today? Katie?

[Caller]

Hi guys, how are you?

[Jade Warshaw]

Great. How can we help?

[Caller]

So my, my question is, I'm on baby step two with a job that provides a company car. So I don't have a car payment or pay for gas or anything like that right now.

[Jade Warshaw]

Nice.

[Caller]

But I recently, I recently received a job offer which it would be a pay increase, but instead of a company car, they would give a monthly allowance for car payments and gas separately. So my question is, if I take this job, should I pause baby step two and try to save as much money as possible to put towards a car or should I keep throwing money at my debt and then just use the car allowance when I potentially start?

[Jade Warshaw]

That's a good question. You're going to need something to drive in right away. Do you have any money saved whatsoever?

[Caller]

No, I'm a baby step two, so I have maybe 1500 bucks.

[Jade Warshaw]

Okay. How much is the car allowance? Once they give it to you, it

[Caller]

would be around 850amonth, not including gas. Gas would be an additional like 2 to 300amonth.

[Jade Warshaw]

Okay. Are you close? Would you be close enough to the one work that in the meantime you could do something like take the bus or Uber or do something short term while you stacked up that, you know, however much the car allowances in order to just get yourself a quick beater to get started?

[Caller]

Well, the job includes it's sales, so I would have to Use the car to drive to different offices. But the other thing is it wouldn't start until June, maybe July even so I would have a few months to start save up. So I think, I'm thinking I could potentially save up 10 to 15,000. So it's great.

[Ken Coleman]

You can get a, you can get a fine car for 10 to 15.

[Jade Warshaw]

I think that's great.

[Ken Coleman]

I mean this is a real opportunity if you and I love, by the way, your, your suggestion because you, you, you are demonstrating someone who has got some self discipline and if you can do that and use this car allowance effectively, that's a win for, for you. So I, I, that's, that's the play. You just answered your own question.

[Caller]

Yeah, that's what I'm thinking. I've just been on such a motivated kick. I'm paying off my debt. It's good for you to pause it a little bit, but I know in, you know, in the long run.

[Ken Coleman]

Yeah, but, but you know what's great about this is it's in the grand scheme of things, it's not really a pause, you know, like you're, you're, you're not, this isn't like going to put you way behind. You're only talking about, you're not stopping,

[Jade Warshaw]

you're not stopping progress.

[Ken Coleman]

Yeah, that's what I meant to say. That's even better. You are pausing the act of paying it down. But, but you're doing it for a reason and you're going to pick right back up where you left off and not be behind.

[Jade Warshaw]

Yeah. Buying a car in cash is great progress in your.

[Ken Coleman]

Yeah, good for you.

[Jade Warshaw]

Yeah, very good. Katie, thank you for the call. Next up we have Gary in California. Gary, what's on your mind?

[Caller]

Hi, Jade.

Hi, Ken.

[Ken Coleman]

Hi.

[Caller]

My basic question, I got to give you some details but my basic question is how can I enjoy monetary gifts I've received from my parents given I've tithed all my life but found it difficult to save. I'm very late in life and I'm 66 years old and just came to Ramsey a few years ago. I now have an emergency fund paid off my house, got a pension but not much savings. And also as I'm retired, I'm looking after my folks. So recently my parents gave me and my brother $38,000 and because my mom knows I want to go to Africa on safari. She says this is for your Africa, the trip.

[Jade Warshaw]

Great.

[Caller]

I'm thankful.

[Ken Coleman]

What do you have, what do you have in savings?

[Caller]

Sorry?

[Ken Coleman]

What do you have in savings?

[Caller]

Right now nothing of my own.

[Ken Coleman]

You have zero dollars in savings?

[Caller]

No, I mean, I've been given some money, so I've got. I've got some money, but how much? Over 100,000.

[Jade Warshaw]

Okay, so let me just recap right quick. You're retired. You have no debts. You have a hundred thousand saved, and you got a $38,000 gift to go on safari in Africa.

[Ken Coleman]

Yeah, but you told us that you've not been good at saving, so I'm. I'm so confused.

[Caller]

Okay, here's the deal. If I found it very difficult throughout life to say, but always made the 10. 10% for God. But I always. I hadn't learned the Ramsey principle, so

[Ken Coleman]

I was going through life, and at

[Caller]

the end of the month, I just didn't have enough left to save rather than putting savings number one.

[Jade Warshaw]

Okay, okay.

[Caller]

So what I've got is a situation where I have a kind of bad taste in my mouth that's spoiling things because I feel ashamed for needing the money. For needing the money for a bucket list trip. I have no sense of satisfaction.

[Ken Coleman]

Oh, well, let me fix. Let me fix that. Let me fix it. First of all, this is a gift, and you need to receive it as a gift or else it robs your parents of the blessing. And a safari trip is not going to cost you 38,000.

[Jade Warshaw]

It's not.

[Ken Coleman]

Go do a great safari trip and then invest or save the rest of it and enjoy your life. You're 66. We're not promised tomorrow. Go take some pictures of some giraffes, man.

[Jade Warshaw]

Yeah, but you also need to save some retirement for yourself because you don't have it.

[Ken Coleman]

I told him that. But he needs to go do the safari, too. He's got 100 grand. He could start investing.

[Jade Warshaw]

Yeah, he needs to start that immediately.

[Dave Ramsey]

Hey, guys. Dave Ramsey here. Every day on the show, we help people work through real money problems and figure out what to do next. Now, you can get that same kind of help anytime with Ask Ramsey. Ask your money question and get answers built on Ramsey principles we use on the show. Whether you're making a decision or just want something explained, Ask Ramsey is here to help. It's fast, simple, and free to use. Go to ramseysolutions.com and try AskRamsey today. That's ramseysolutions.com.

[Jade Warshaw]

Our Ramsey show scripture and quote of the day. Philippians 4:13. Ken Coleman. I can do all things through Christ who strengthens me.

[Ken Coleman]

Yes.

[Jade Warshaw]

Amen.

[Ken Coleman]

I love it.

[Jade Warshaw]

Dolly Parton. If your actions create a legacy that inspires Others to dream more, learn more, do more and become more. Then you are an excellent leader.

[Ken Coleman]

How about Dolly dropping some leadership gold? That's actually a really great quote.

[Jade Warshaw]

It is inspiration.

[Ken Coleman]

Oh, she's a treasure, folks. She's a national treasure.

[Jade Warshaw]

Love it. Love it. All right, Ellie is in Louisiana. Ellie, how can we help today?

[Caller]

Hi. So me and my new husband, we just got married. First marriage for both of us. Hopefully the only marriage. We're a young, we're a young Christian couple. We're looking at buying a place, but. But we're not sure. Like, are we. This is going to sound so silly. Are we too young to buy property? We neither of us have debt. We both have college degrees. We have together like over 100,000 in savings. Like, would it be a good next step as a couple to buy a house together?

[Jade Warshaw]

How long you been married?

[Caller]

We just got married in January, but we were together for five years prior to prior.

[Jade Warshaw]

Okay, and how old are you guys?

[Caller]

We are 23 and 25.

[Ken Coleman]

Okay, fantastic. What are your incomes?

[Caller]

I make about 60 and he makes over a hundred.

[Ken Coleman]

Fantastic. And what do you do?

[Caller]

I am an engineer. I just graduated. But he is actually in the finance realm. But he's newer to it and he's very good with money obviously, or we wouldn't have that much in savings. But we're just like scared almost to have a mortgage.

[Ken Coleman]

Sure. Well, let's walk through the emergency fund. So based on, you know, your numbers, do you guys have a three month or a six month emergency fund in that? 100,000. I know that's more than you need, but what, what would be three months? What would be six months?

[Caller]

We're currently renting in thirteen hundred dollar place right now. So that would be, be, you know, probably at least six months plus any expenses we would have in that time. More than probably that.

[Ken Coleman]

Oh, 100,000 is, is more than six months of basic expenses for you guys. So what kind of a size house are we talking about? Not size actually. What price point are you guys looking at? Because I assume you guys have driven around or you've been on websites looking at houses. What are you looking at?

[Caller]

Yeah, we're looking between like 250 to 350. We're looking at a duplex and fixing it up and living in one side and renting out the other.

[Ken Coleman]

I don't like that. Jade, what do you think about that?

[Jade Warshaw]

All I can tell you is when I was in high school, we moved into a duplex and it started out fine and then it went south very Quickly. And what sucks is if the person on door number one doesn't get along with the person on door number one. Number two. You have to see them every day.

[Ken Coleman]

Those walls are thin.

[Jade Warshaw]

Yeah. Yeah, they are.

[Ken Coleman]

That's a horrible idea. Ellie, you're such a sweet.

[Jade Warshaw]

Such like a first. Ooh, yeah.

[Ken Coleman]

You're so sweet. I didn't want to say it that way at first, but now I just have to warn you, this is a, this is an awful idea. You guys are already thinking. You're thinking, our first house, guess what? We'll live in it. But it's a real investment. And I just think because it's a duplex and all the problems that come with it, we don't think that's a strong investment strategy. And it sure as heck is not a great young marriage strategy. You guys need your own place without any kind of headaches literally next door. Yeah, yeah, don't do that, please.

[Caller]

Could. With our income, do you guys think that we could buy a house then like.

[Ken Coleman]

Yeah, Jade, walk them through.

[Caller]

I just scared of, okay, Jade's gonna

[Ken Coleman]

walk you through how you would do it with that really nice income.

[Jade Warshaw]

So tell me.

[Ken Coleman]

Nothing to be scared of.

[Jade Warshaw]

Tell me what you guys are taking home every month.

[Caller]

Every month. So he gets commission. So it really depends. But we've had months where it's been like 10 grand and then we've had months where it's been like the lowest, been like six.

[Jade Warshaw]

Okay. So I would plan based off of the lowest month because that's going to give you a measure of peace. So if six grand is the lowest month, I'd say okay for us to really feel great. We don't want our mortgage to be any more than fifteen hundred dollars a month. That's 25% of our take home pay. And that's kind of a parameter that we use here at Ramsey Solutions. And then what I would do, which is what I'm doing right now, I go over on Ramsey Solutions.com and I pull up the mortgage calculator and I say, okay, let's pretend we're looking for a house. You said between 3, 250 to 350, right? Okay, so let me just, I'll look at 325. How about that? That's kind of somewhere in the middle.

[Ken Coleman]

And since it's plenty of house for a young couple.

[Jade Warshaw]

And so if I say, okay, what happens if we put our down payment, we need to get to $1,500 a month. So I'm going to make this a pretty hefty down payment and we're still not quite there yet. Let's see. But all I'm doing is plugging in the numbers to see you're going to have to put down a lot to get there. So I don't think you guys are quite there yet. You're going to be putting down upwards of 160,000 to get there. So at 325.

[Ken Coleman]

So sit on that number here for a second. You're not one not holding you to this. How long do you think? So this has got to be above and beyond your emergency fund. Okay, so if you do three months emergency fund and you, you're going to calculate that, right? You know how to do that and go, okay, this is our, these are our, our total expenses to, to run everything right. We're not crazy about this. What's that number? And so above and beyond that, how long do you think it would take you to save 160,000?

[Caller]

100 from where we are probably only another year.

[Jade Warshaw]

Our.

[Ken Coleman]

That's what I'm thinking.

[Caller]

Very low, right? Right now.

[Jade Warshaw]

Exactly.

[Ken Coleman]

So could you wait a year? You guys are just married. Could you wait a year and get a fat down payment?

[Jade Warshaw]

And here's what else is going to happen in that year. Your husband, who works on commissions is going to find his flow and he's going to have way more months where he's sitting at 10,000 as opposed to 6,000. You see what I'm saying? So it gives you guys time, it gives you time to get in a flow both income wise and it gives you time to save up the down payment. You really need to get in a house that's just. We don't want Billy Bob across the

[Ken Coleman]

doorway, you know, by the way. Yeah, by the way. I mean, yeah, the people that are living in duplexes, you got to do your homework on this. Go drive around, sit in the parking lot of some local duplexes and watch who's coming in and out. Cool out, Ken.

[Jade Warshaw]

Because I lived in a duplex.

[Ken Coleman]

I'm just saying. And many of us have, but not long term. I'm calling balls and strikes right now. Go sit down in the parking lot because your husband's not on this call. He may go, well, Ken is. Blah, blah, blah, blah, blah. Okay, here's what he needs to do. Go sit in the parking lot of four or five different area duplexes and just take a, just, just kind of pay attention to what's going on.

[Jade Warshaw]

Hang out.

[Ken Coleman]

Now I also want to say one other thing, actually. It's A question. Are you guys in a nice apartment right now? What's your situation?

[Caller]

It's a two by one right now. So two bedroom, one bathroom, which is fine. We just, we know we're going to need more space at a certain point.

[Ken Coleman]

Stop it. You'd been married 2. Is it a nice apartment complex?

[Jade Warshaw]

It's fine.

[Caller]

Overall, yes, it's fine.

[Ken Coleman]

You got a nice pool.

[Jade Warshaw]

All right, listen, they'll be okay. You guys have big home ownership goals.

[Ken Coleman]

I know. I was trying to get her trapped to go. Would you just enjoy being married and not having to worry about a roof?

[Jade Warshaw]

Here's the thing.

[Ken Coleman]

Or the H Vac. I mean, this is things that young couples don't think about. Let me tell you something. Everybody wants a house. Nobody wants to deal with the problems of a house.

[Jade Warshaw]

Truer words have not been stated.

[Ken Coleman]

That's what I want to say to young couples. Cool it.

[Jade Warshaw]

Yeah.

[Ken Coleman]

Because you have no stress right now living in an apartment. You just got none.

[Jade Warshaw]

Yeah. Because when I once you buy a home and I say the word water, you like the moment you experience water. Being in the wrong place, owning a home.

[Ken Coleman]

Let me tell you something right now, Jade. I'm going to be an old man in right now. I'm griping about the fact that I just had to spend $2,500 to get my beautiful, gorgeous tree in my front yard cut down. I got the stump taken out because of an ice storm. I just want to keep it real for all you young couples that are just dying to get a house. Well, guess what? I had to cut the tree down because it split into. It blew up because of the ice.

[Jade Warshaw]

To pay an arborist is crazy money.

[Ken Coleman]

2,500 bucks. Yeah.

[Jade Warshaw]

I mean, man, I have.

[Ken Coleman]

Do you think I was. And by the way, I have it. But do you think I was happy about it?

[Jade Warshaw]

It's never fun.

[Ken Coleman]

I'm still griping about it right now. All of America's having to deal with me griping. But guess what? That, that doesn't happen when you live in a nice little apartment complex and the ice storm comes through.

[Jade Warshaw]

Well, yeah. Cuz then you just call maintenance and

[Ken Coleman]

you're like, hey, if something goes wrong, they send Roger up.

[Jade Warshaw]

Yeah.

[Ken Coleman]

And Roger comes in, you know, and he fixes it. And then we go on date night.

[Jade Warshaw]

Yeah, exactly. But in a house, it hits different.

[Ken Coleman]

I'm still griping about that tree. And by the way, it's a gorgeous tree. Yeah, Gone.

[Jade Warshaw]

Let me tell you, I'm still a little offended about what you said about us. Duplex dwellers.

[Ken Coleman]

Was I wrong?

[Jade Warshaw]

I don't know, kid.

[Ken Coleman]

Y' all drive around this weekend, spend 45 minutes in the duplex parking lot, pay attention to who's coming in and out of those places. That's all I'm saying. I'm keeping it real.

[Jade Warshaw]

Oh, boy. We remember there's ultimately only one way to have financial peace, and that's to walk daily with the Prince of peace, Christ Jesus.