You Need To “Happen” to Your Life Instead if It Happening to You

Summary

Podcast Summary: The Ramsey Show – "You Need To 'Happen' to Your Life Instead of It Happening to You"

Release Date: February 10, 2025

Introduction

In the February 10, 2025 episode of The Ramsey Show, host Ken Coleman and co-host Jade Warshaw delve into various listener dilemmas surrounding personal finance, relationships, and professional growth. This episode emphasizes proactive financial management and intentional life choices to overcome obstacles and achieve financial peace.

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1. Caller: Jacob from Cincinnati, Ohio – Overwhelmed by Debt Post-Business Failure

Issue Summary: Jacob shares his predicament after his business failed, leaving him unemployed in a rural area outside Cincinnati. He recently joined the electricians union and awaits a job call but is currently drowning in debt, with impending debts on credit cards and his truck.

Advice Provided:

• Immediate Employment: Ken advises Jacob to utilize his skills as an electrician by exploring various handyman roles to secure immediate income, suggesting even a basic $10/hour job to meet his $1,200 monthly survival need.

  Ken Coleman [04:52]: "If you just need $1,200 to get by, then all you effectively need to do is find 40 hours a week at $10 an hour."

• Aggressive Job Search: Emphasizes the importance of actively seeking employment opportunities rather than passively waiting for the union job call.

• Debt Management: Once income is stabilized, Jacob should employ the debt snowball method to systematically eliminate his debts.

Notable Moment: The conversation took a humorous turn when Jacob mentioned his truck being attacked by peacocks, highlighting his rural living situation.

Jade Warshaw [07:48]: "You should see the truck."

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2. Caller: Sam from Birmingham, Alabama – Balancing Personal Debt and Supporting an Ex-Girlfriend

Issue Summary: Sam is grappling with multiple debts, including a high-interest car loan, back taxes, and credit card debt. Additionally, he feels compelled to assist his ex-girlfriend with her substantial credit card debt post-breakup.

Advice Provided:

• Emergency Fund: Jade recommends starting with a $1,000 emergency fund as the first step toward financial stability.

• Debt Prioritization: Following the Ramsey Baby Steps, Sam should focus first on creating the emergency fund, then tackle his own debts using the debt snowball method before considering aiding his ex-girlfriend.

• Relationship Boundaries: Emphasizes the importance of not letting past relationships hinder financial progress and maintaining clear boundaries to avoid further financial entanglement.

Notable Moment: Jade addresses the emotional aspect of Sam's situation, advising him to prioritize his financial health over trying to alleviate his ex's debt burden.

Jade Warshaw [12:37]: "I would not feel any obligation to pay 50k to an ex."

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3. Caller: David from Indianapolis, Indiana – Navigating Finances Amidst a Stage Four Cancer Diagnosis

Issue Summary: David recently received a stage four cancer diagnosis and is on chemotherapy. He is unsure whether to prioritize saving money or continue investing, given his medical expenses and fluctuating income.

Advice Provided:

• Prioritize Savings: Ken and Jade agree that David should focus on stacking cash in a high-yield savings account to cover unforeseen medical costs and support his financial needs during treatment.

• Emergency Fund: Reinforces the importance of maintaining an adequate emergency fund to handle medical expenses not covered by insurance.

• Post-Recovery Planning: Once David's health stabilizes, he can redirect funds towards paying off remaining debts and resume investing.

Notable Moment: Jade underscores the critical need for financial flexibility during health crises.

Jade Warshaw [36:05]: "My goal would be stacking up money so that I can use it for health opportunities or for other things that pop up."

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4. Caller: Logan from Provo, Utah – Considering Refinancing to Address HVAC System Repairs

Issue Summary: Logan and his wife face significant HVAC system repairs costing $18,000 in their rural Utah home. They have substantial equity in their property but are contemplating using a home equity line of credit (HELOC) to fund the repairs.

Advice Provided:

• Avoid Leveraging Home Equity: Ken advises against taking out a HELOC, emphasizing the importance of not jeopardizing home stability and wealth building.

• Seek Alternative Solutions: Recommends obtaining a second opinion on repair costs and exploring creative payment solutions, such as partial repairs or securing additional income sources to fund the expenses without incurring more debt.

• Financial Stability: Highlights the need to preserve home equity for long-term financial security and avoid disrupting the stability that homeownership provides.

Notable Moment: Ken humorously suggests unconventional methods to obtain the necessary coolant for repairs.

Ken Coleman [30:08]: "Oh boy. I'm on the trail, folks. You know, I would be the guy trying to get myself some of that black market free, you know, a guy."

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5. Caller: Shannon from Phoenix, Arizona – Managing Dual Mortgages and Unforeseen Home Repairs

Issue Summary: Shannon and her husband own two homes. Their recent move led to an unforeseen $140,000 foundation repair requirement on one property, making it difficult to sell without incurring significant losses. They are also burdened by a high monthly mortgage payment of $4,500, which consumes over half of their income.

Advice Provided:

• Sell Current Home: Jade and Ken recommend selling the affected property despite the potential loss to alleviate financial strain and avoid exacerbating debt.

• Rent Affordable Housing: Suggest moving to a more affordable rental to reduce monthly expenses and stabilize their financial situation.

• Debt Reduction: Focus on paying off existing debts before considering additional investments or property purchases.

Notable Moment: Ken refers to their financial predicament metaphorically as a "hot potato," highlighting the urgency to resolve their housing and debt issues.

Ken Coleman [74:01]: "So you got this one house. If you fix the foundation, it's worth 1.1. Yeah. Yeah, you're probably right."

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6. Caller: Richard from Chicago, Illinois – Recovering from Debt Post-Breakup

Issue Summary: Richard accumulated $50,000 in credit card debt following a breakup while co-owning a house with his ex-girlfriend. The house, solely in his name, now has a high mortgage payment of $2,365, consuming nearly all of his monthly take-home pay.

Advice Provided:

• Sell the House: Jade advises selling the overly expensive house to eliminate the high mortgage burden, enabling Richard to live within his means.

• Live Within 25% of Income: Recommends maintaining housing costs at or below 25% of monthly income to ensure financial sustainability.

• Debt Repayment Strategy: Encourage Richard to focus on paying off the credit card debt using the debt snowball method once the high-interest obligations are reduced.

Notable Moment: Jade emphasizes the importance of responsibility in managing personal finances post-breakup.

Jade Warshaw [84:07]: "Here’s step one. If I were you, step one is, you've got to get out of this house. You can't afford it."

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7. Caller: Taylor from Alabama – Career Transition Before College

Issue Summary: 19-year-old Taylor is at an entry-level bank job earning $35,000 annually and has been offered a higher-paying position elsewhere. However, he plans to attend college in the fall and fears that frequent job changes may mark him as a "job hopper" to future employers.

Advice Provided:

• Legitimate Job Moves: Ken reassures Taylor that his age and situation (pre-college transition) are understandable reasons for job changes, framing it as making strategic moves to support educational goals.

• Narrative Control: Emphasizes the importance of framing job transitions positively in resumes and interviews to avoid negative perceptions.

Notable Moment: Ken likens job hopping concerns to high school relationship reputations, highlighting the contextual nature of job stability perceptions.

Ken Coleman [67:16]: "I don’t think there’s any set rule, but if you were to look at one's resume and you were to see multiple jobs in a span of a year and a half to two years."

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8. Caller: Jeremiah from Dayton, Ohio – Relationship Struggles Amid Financial Stress

Issue Summary: Jeremiah faces relationship tensions with his girlfriend as their lease is up. They have been living together for a year and are experiencing frequent disagreements over household responsibilities, leading him to consider moving back with his father.

Advice Provided:

• Temporary Separation: Recommended by Ken, Jahde Warshaw suggests taking a temporary break by living separately to reassess the relationship and financial dynamics.

• Financial Independence: Emphasizes the importance of personal financial responsibility and ensuring both partners contribute equitably to household expenses.

• Communication and Counseling: Encourages open discussions about roles, expectations, and possibly seeking marriage counseling to address underlying issues.

Notable Moment: Jade highlights the importance of aligning household responsibilities and financial contributions to maintain a healthy relationship.

Jade Warshaw [85:01]: "So if I’m a lady, which I am, I’m looking for a guy who can take care of himself."

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Conclusion

Throughout the episode, Ken Coleman and Jade Warshaw underscore the significance of proactive financial management, clear communication in relationships, and strategic life choices. Key takeaways include:

• Proactive Job Searching: Actively seek employment opportunities to stabilize income and manage debts effectively.

• Emergency Funds and Debt Snowball: Prioritize building an emergency fund and systematically eliminate debts using proven strategies like the debt snowball method.

• Financial Boundaries in Relationships: Maintain clear financial boundaries in personal relationships to prevent entanglement and ensure mutual financial responsibility.

• Avoiding Debt Leverage: Refrain from leveraging home equity for non-essential repairs, focusing instead on preserving financial stability and wealth accumulation.

This episode reinforces Dave Ramsey’s foundational principles adapted by Ken and Jade, advocating for intentional actions to ensure that life unfolds on one’s terms, rather than being subject to unforeseen financial crises.

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Selected Notable Quotes:

• Ken Coleman [04:52]: "If you just need $1,200 to get by, then all you effectively need to do is find 40 hours a week at $10 an hour."

• Jade Warshaw [07:48]: "You should see the truck."

• Jade Warshaw [12:37]: "I would not feel any obligation to pay 50k to an ex."

• Ken Coleman [36:05]: "My goal would be stacking up money so that I can use it for health opportunities or for other things that pop up."

• Jade Warshaw [85:01]: "So if I’m a lady, which I am, I’m looking for a guy who can take care of himself."

Note: This summary excludes advertisement segments and non-content sections to focus solely on the valuable advice and discussions pertinent to listeners seeking financial and relational guidance.

Transcript

[Jade Warshaw]

Foreign.

[Ken Coleman]

Welcome to the Ramsey Show, America, where we help you win with your money, win in your profession, and win with your relationships. Alongside Jade Warshaw, I'm Ken Coleman. Phone number to jump in is, is, 882-55-2225. Triple 882-5522. 225. You ready to go, partner?

[Jade Warshaw]

Let's giddy up.

[Ken Coleman]

She's ready to go. Jacob is up in Cincinnati, Ohio. Jacob, how can we help?

[Caller]

Hey, how are you guys doing?

[Ken Coleman]

Good. How are you, Jacob?

[Caller]

I'm doing okay, I guess. Yeah. So my situation is that I had a business fail a while ago. I was on the job search for quite a while, couldn't find anything. I'm actually in a rural area outside of Cincinnati, so I applied to get into a trade union, the electricians union. And I got in and I'm waiting on a job call. And as soon as I get into a job, I should, you know, theoretically be okay. But I have no idea when that job call is going to happen. And I'm up to my ears in debt. I'm about to not be able to make my payments on my cards and my truck.

[Ken Coleman]

Okay, what kind of income? Let's just assume that we could snap our fingers and give you the income that you used to have. What do you need to make at a minimum to be able to cover all your payments and have a little bit of margin? What's that number?

[Caller]

Well, I have a pretty unique situation, so honestly, if I made twelve hundred dollars in a month, I would be perfectly fine.

[Ken Coleman]

How so? Why is it so unique? Tell us what is so unique about your situation?

[Caller]

So I actually built my own home.

[Ken Coleman]

Okay.

[Caller]

On family land. I have my own water system, so no water bill. I pay for electric, which never goes over a hundred a month.

[Jade Warshaw]

Okay. No taxes.

[Caller]

Insurance on.

[Jade Warshaw]

On the land?

[Caller]

Yeah, I. Oh, the. The property taxes were $1300 for the year.

[Ken Coleman]

How long have you been going without income?

[Caller]

Probably three months now.

[Ken Coleman]

And what were you doing prior to that? This was your business? Yeah.

[Caller]

So.

[Ken Coleman]

So what you do? What'd you do prior to your business failing? What do you do for income?

[Caller]

So I came over here and I built my house, and then I was doing, like, wellness coaching and kind of doing odd jobs while I finished kind of building out the land.

[Jade Warshaw]

Okay.

[Ken Coleman]

When was the last time? So I'm hitting you here because we got to get to your debt situation with Jade, but we got to figure out your income. You have zero income. So Jay can't help on the debt until we figure out income. So take Me back as quick as you can to the last time you had a 40, 40 hour a week job. What were you doing and how much were you making? Take me back.

[Caller]

I was working at a wellness retreat center.

[Ken Coleman]

Doing what?

[Caller]

And I was managing staff, teaching yoga.

[Jade Warshaw]

How many hours? How many hours a week? How many hours a week did you do that?

[Caller]

I guess it would be around 50.

[Jade Warshaw]

Okay.

[Ken Coleman]

And so the trade thing that, you know, I'm getting somewhere, partner.

[Jade Warshaw]

I got this.

[Ken Coleman]

At least I'm trying to. So. So the trade thing you signed up for, what kind of trade work is that?

[Caller]

Electrician.

[Ken Coleman]

Okay. And you're skilled and ready to go. You can do that?

[Caller]

Yes.

[Ken Coleman]

Okay. Here's what I'm getting at. I had to get some information to go. Jacob, you don't sit around and wait for this opportunity. I'm glad you got signed up, and presumably something will come, but you're also in a rural area, so right now it sounds like you're a pretty mobile guy. That means you've got to do whatever it takes and go wherever. So whatever and wherever are two of your favorite words right now.

[Jade Warshaw]

Love that.

[Ken Coleman]

And what I'm talking about is that if you just need $1,200 to get by, then all you effectively need to do is find 40 hours a week at $10 an hour. Now, I think you can do way better than that. But if you can be an electrician, tradesman, that means you can do a lot of other things. So we're talking every handyman job possible. Get to Cincinnati, Ohio. Get somewhere where you can deliver something, show up and pick something up and place it on a shelf. You don't need a lot to live, which is the Good news. Okay. $1,200 is our baseline for living. So based on that, jade, if we. If we can get you to where you're actually making a good bit more than that, then you can go through the debt snowball, and I bring in my partner here. But my friend, like, you've got to happen to this problem. You are so relaxed. I think you'd be a great yoga teacher. I think the great news is, is, like, I'm. I'm sure you're great at yoga, but right now, bro, like, you don't need to be chill. You need to be running around like your pants are on fire. Because I think your pants are on fire 100%.

[Caller]

They. They are. I put in four applications in person today. Did the same thing Saturday. Everything's closed on Sunday.

[Jade Warshaw]

Ken. You're not done yet.

[Ken Coleman]

I'm not I'm gonna jump in. I. Listen, I don't want to knock you putting in applications, but we don't put in applications in a moment when our pants are on fire. Do you know what we do? We find out who is hiring. We ask everybody that knows anybody. And in a small rural area, trust me, it's not hard to find out who's actually hiring. And this may be like taking a page out of my buddy Mike Rose famous show Dirty Jobs.

[Jade Warshaw]

Yeah.

[Ken Coleman]

If somebody's shoveling, you know what, on a farm right now, and they don't have anybody that's showing up to do that, that's where you are, because you're going to shovel, you know what? All day today.

[Caller]

Today for sure. For sure.

[Ken Coleman]

Okay.

[Caller]

Yes.

[Ken Coleman]

All right. Now let's assume you got some money coming in. Walk Jade through your debt.

[Jade Warshaw]

Yeah. Tell us what the problem is, because I'm like, with twelve hundred dollars makes it tick, you know, I can't assume there's much debt in the situation, but tell me, Tell me otherwise.

[Caller]

Oh, no. Twelve hundred dollars is just survival.

[Ken Coleman]

Okay, we knew that.

[Jade Warshaw]

So tell us your list out your debt if you have it, or list out the things that are keeping you aside from your job, keeping you from hitting your next money goal.

[Caller]

So I owe 29 on a truck which has been attacked by a peacock, so resell would be difficult.

[Ken Coleman]

For real?

[Caller]

What does that look like for real?

[Ken Coleman]

Favorite call of the month already. We still have a lot to go. A peacock attacked his truck.

[Jade Warshaw]

You should see the truck.

[Caller]

Yeah, yeah. Peacocks can really, really take down the resale value of a truck. It's incredible.

[Ken Coleman]

They got a strong beak, I guess.

[Jade Warshaw]

Is it like. Are they like monkeys and they throw stuff? You know, they throw the stuff at it or they like attacking it with their beak.

[Caller]

Well, here's what. If you're an idiot and you buy a brand new truck with an unstable income, it's shiny, and then when it's shiny, they see the reflection in the truck and they attack their reflection.

[Ken Coleman]

You got a flock of peacocks near you, Jacob? Is that what's going on?

[Caller]

Yeah, I live near my grandmother.

[Jade Warshaw]

Okay.

[Ken Coleman]

Does she have a pet peeve?

[Caller]

She sure did. She sure did.

[Ken Coleman]

Oh, you didn't hurt the peacock, did you, Jacob?

[Caller]

No, no.

[Ken Coleman]

Okay. She did. He said that in the past. Listen, I thought maybe he saw the peacock pecking his quarter panel and he took care of the peacock.

[Jade Warshaw]

This call just went down a road.

[Ken Coleman]

And you want to hold him over and give you some advice. I want to hold him over.

[Jade Warshaw]

We're good.

[Ken Coleman]

Be careful.

[Jade Warshaw]

He's got to sell the truck.

[Ken Coleman]

Another reason not to buy a shiny truck that's not paid for. The peacock.

[Jade Warshaw]

You got to get a job.

[Ken Coleman]

Ramsey show. We'll be right back.

[Jade Warshaw]

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[Ken Coleman]

Welcome back to the Ramsey show alongside the incomparable fabulous Jade Warshaw. I'm Ken Cole Coleman. The phone number is 888-825-5225 if you want to jump in. 888-255225. Sam is up in Birmingham, Alabama. Sam, how can we help today?

[Caller]

Hey, guys. So I wanted to know if you would honestly recommend that I start with a $1,000 a month emergency fund after kind of reading you off some stats here. So I've a 3 Ivy 30% interest rate on a $33,000 car loan. I have 9k in back taxes owed, 5k in credit card debt. Nothing. My ex girlfriend has 50k in credit card debt that I kind of want to help her out with.

[Jade Warshaw]

Your ex girlfriend?

[Caller]

Unfortunately, yeah.

[Jade Warshaw]

And you want to help her with the debt?

[Ken Coleman]

Yeah. Wow.

[Jade Warshaw]

Sorry. I just. That really nice guy.

[Ken Coleman]

I'd like to know more.

[Jade Warshaw]

Yeah.

[Ken Coleman]

Why are we doing this?

[Caller]

Well, you know, she's. It was a six year relationship. I lost her last Q4. I was pushing myself too hard. Finally burnt out after. After about 10 years of extremely hard work and I just feel responsible for a lot of that. I'm sure some of it's mine. I'm sure a good bit of it might be mine.

[Jade Warshaw]

You used her card. You used card Sometimes, well, we look.

[Caller]

Together, you know, like it was a. Like she would help out with like. I, I don't know. I think someone. I think my car insurance, for example, is on the credit card. Things like this. Right?

[Ken Coleman]

Think so. You don't even know.

[Jade Warshaw]

Listen, how does that change your opinion?

[Ken Coleman]

Does it change your opinion?

[Jade Warshaw]

I'm going to say something really controversial right now.

[Ken Coleman]

Oh, I'm very excited.

[Jade Warshaw]

She probably rode in your car lots of times. Does she need to help you pay off your car? You know what I'm saying? You know, your credit card debt, you may have paid for some things for her. I think. I think what it sounded like, I don't know, but it sounds. You said she got away. It sounds like you're still recovering from this.

[Ken Coleman]

He's dealing with guilt.

[Jade Warshaw]

You still care for her, you might feel some guilt. Obviously you still care for her. But I would. I would not feel any obligation to pay 50k to an ex. Is she asking for money?

[Caller]

Not well, not really, no.

[Jade Warshaw]

Do you want to know what I think? Do you want to know what I might think as your older sister who cares for you? Okay, this is like when you go on a date with somebody. I think this was from Seinfeld. And he would leave something in her apartment on purpose so he would have a reason to come back and knock on the door.

[Ken Coleman]

Brilliant move.

[Jade Warshaw]

Yeah, I feel like this is a reason for you to come back and knock on the door.

[Caller]

Yeah, well, I love her. I mean.

[Ken Coleman]

Oh, and you're not. You're not. You're not ready to let go.

[Jade Warshaw]

If you could dedicate a song to her right now, what would you dedicate?

[Ken Coleman]

Oh, great question. Seriously, what is it?

[Caller]

Take this. Well, so listen, there's too many to count. I'm writing. I'm writing letters about every day.

[Jade Warshaw]

Oh, I'm sorry.

[Caller]

To her situation. Look, I know that's the biggest debt, but this 30. This 30 interest rate on this $33,000 car loan is really bugging me. I didn't know what that meant when I signed the contract. I thought it meant 30% of the car's value in total. I didn't know that that was like appreciating. Yeah, I didn't know that that was. Every year it goes 30%.

[Jade Warshaw]

You said 3% when you first said it. It's 30%.

[Caller]

No, no, it's 30% and it's. It's an Italian car.

[Jade Warshaw]

Okay.

[Caller]

Right down.

[Ken Coleman]

I'm sick to my stomach. For you, Sam, you have to take. Oh my goodness. What's the snowball? Where are we at on the snowball? Did we get there?

[Jade Warshaw]

No, because your initial question. I'm sorry, I got hung up on your. Your love situation. The initial question was, do I really want him to go down to $1,000 of an emergency fund?

[Caller]

Yeah. Is that where I start or where do I start here, guys?

[Jade Warshaw]

Yeah, that is where to start. So let me just go through the baby steps with you right quick, Sam, just so you see how this all fits. And how long have you been listening to the show? Are you a new listener?

[Caller]

I'm a new. I'm a new listener, yeah. You guys are on. On my YouTube shorts.

[Jade Warshaw]

Okay, so you only get bits and pieces on that. Thanks for watching. But you only get bits and pieces. So the first step. This is seven baby steps for you to achieve financial peace is what we're talking about. So you do them. All of that. I'm saying you do them consecutively in order. That's the first thing. You got to do them in order. If you jump around, it won't work, and you'll be wasting your time. The first step is you get a thousand dollars saved. So if you don't have any money saved, you got to go out, work, sell stuff, and get it done. If you do have money saved, you drop it down to thousand dollars. And then the next, whatever money you had left over is going to go to baby step two, which is you paying off all of your debt except your mortgage. This is all the consumer debt. Okay. And you do this using the debt snowball method. Debt snowball is we list all the debts, smallest to largest. You pay minimum payments on everything, and then any extra money goes to the smallest debt. Does that make sense?

[Caller]

Yep.

[Jade Warshaw]

Okay. After that, now we stack up that emergency fund. Three to six months of expenses is what we're looking for. You get to decide is it three, four, five, or six after that.

[Caller]

So number three is three or $4,000 a month in expenses, three to six.

[Jade Warshaw]

Months of basic living expenses.

[Ken Coleman]

So just for round numbers, let's say. Let's say you're a number. Let's say you had $5,000 worth of expenses every month. What we're saying is that's three months is 15,000, six months is 30,000. You tracking?

[Caller]

Yep.

[Ken Coleman]

All right, so that's what we mean by an emergency fund. We. We give you the kind of the. We say three months is a minimum. So that'd be 15,000 on this example. That's what she's told.

[Jade Warshaw]

That's right. And it's it for baby step Three. It's really about your basic budget. It's not three to six months of paychecks necessarily. It's what it takes to make your house go on a basic level. Okay. Baby step three B. It's B. Because it's not the case for everybody is if you're looking to buy a house. Now is when we start saving up a down payment for the house. Okay. After that you go to baby step 4. You could do 3B and 4 at the same time if you want to. You're putting 15% of your gross income into retirement funds. So that's your 401k Roth IRA, that sort of thing. Then after that, if you have kids, you're planning for kids, you can put an amount of your discretion towards kids college. We say a 529 or an ESA is where you would do that. And then finally baby step six, if you have extra money in your budget, again at your discretion, you're throwing extra money towards paying off your house early. Most people who do that pay off their house in like 10, 12 years. So that's. And then finally baby step seven, you just live like no one else. You give, you're a happy person and you got no cares. Right? So that's kind of the big cars with cash.

[Ken Coleman]

Hey, okay, but like, can we talk about. I'm dying right now. You did such a good job. Can we talk about this man's car? Yeah, tell us about what's the car worth?

[Jade Warshaw]

Paint us a picture.

[Caller]

Oh, man, the car is like 21k. I bought it for a very. I think Dave will appreciate this. So like, I'm 29. I. I have a online business and I bought an Alfa Romeo because it was the coolest car you could get under 30k.

[Ken Coleman]

Love. How much did you pay for it?

[Caller]

Yeah, so all in taxes. I had no down payment. It was about 33,000. So that's the loan I'm paying off.

[Jade Warshaw]

Okay.

[Caller]

So like, yeah, extra.

[Ken Coleman]

So it's worth 21.

[Caller]

I think I can get a little more for it. I think I might be able to get like 24 or 26 if I'm lucky.

[Ken Coleman]

I mean, you gotta. You. I think you gotta sell this car right now at 30% interest rate. Jade, I know that's extreme, but he said it's 3%.

[Jade Warshaw]

3%?

[Ken Coleman]

I thought he said 30.

[Jade Warshaw]

Is it?

[Caller]

No, it's 30. Yeah, 30.

[Ken Coleman]

You asked that twice and he said 30. Oh, I t. I r T want.

[Jade Warshaw]

Listen, I just turned 41 in my old age. I can't hear you.

[Ken Coleman]

He's paying 30% on this car.

[Jade Warshaw]

That's painful. Yeah, you got to get out today.

[Ken Coleman]

Like, you got to sell it.

[Jade Warshaw]

Do you have any money saved?

[Caller]

No. I can get some money this month, though. I mean, the income's good.

[Jade Warshaw]

Yeah, you got to find. You got to find at least $10,000 so you can get out of this and get yourself a little beater car to drive around until you can save up for a better one. So.

[Caller]

Yeah, but is that, you know, here's the reason I bought this car. It was the coolest car under 30k. And what do you mean?

[Ken Coleman]

What does it matter how cool it is?

[Jade Warshaw]

What do you make?

[Caller]

Well, I'm 99. $200 a month consistently for 2 years. Last Q4, I was paying myself about 14k a month. Really going overboard with the whiskey and the oyster.

[Jade Warshaw]

Here's what I want you to do. Listen, what a life. Here's what I want you to do. I want you to apply that 9200 to get out of debt. I want you to quickly save up what you can to get get out of this car. Buy something cheap in cash. It's only temporary. You're going to be out of debt in a year and then you're going to save up and you're going to buy the same car in cash.

[Ken Coleman]

All right? Jade and I are going to look into some whiskey and oysters ourselves.

[Jade Warshaw]

I know that's right.

[Ken Coleman]

For after the show. We'll see what the order looks like, but we'll be right back. This is the Ramsey Show.

[Jade Warshaw]

Hey, what's up, guys? It's Jade Warshaw. And look, if there's anybody who knows student loan debt is a problem, it's me. My husband and I had two hundred and eighty thousand dollars of it, but we were able to dig ourselves out. And you can too. If your student loan payment and interest rate are burying you, refinancing could be the solution. Now, I recommend contacting my friends at Laurel Road today through their online application. You can get an initial rate quote in less than five minutes. And if you have a more complex situation, you can schedule 30 minutes to talk to an actual human being. Thank goodness Laurel Road makes it simple. There are no fees involved and you could save thousands over the life of your loan. Remember, you should only refinance if it makes sense in your situation. So if you're looking for a low rate or a shorter term so that you can pay off these student loans fast, talk to my friends at Laurel Road about their competitive interest rates and how you could actually Get a lower rate by signing up for autopay. Listen, nobody's coming to save you from student loan debt. If you want them gone, you can't mess around. Go to LaurelRoad.com Ramsey to find out more about student loan refinancing. Again, that's LaurelRoad.com Ramsey. Laurel Road is a brand of Key Bank National Association. All credit products are subject to credit approval.

[Ken Coleman]

Welcome back to the Ramsey Show. I'm Ken Coleman. Jade Warshaw is with me, and we're here for you. 888-25-5225. Hey, it's at T time of year. Jade, have you already got your taxes bundled and ready to go? Are you working on them?

[Jade Warshaw]

Everything is everything, Ken. It's all sign seal delivered.

[Ken Coleman]

Wow. I'm not sure I know what you said, but I'm not sure what you said.

[Jade Warshaw]

I've gathered up all of my documents, 1099s, whatever they all are, okay? And I give them to Sam.

[Ken Coleman]

You're not unburdened by what has been.

[Jade Warshaw]

I am.

[Ken Coleman]

You see what I just did there? That's what I felt. She's in her chair, folks. She could not get to the mic. I pulled that subtly. It felt. That's what. Like you were laying down for me. And that is not you. I'll keep moving. One of the best things you can do for your finances is to have a really good tax pro in your corner that you can trust to help advise you on the best moves to make for your situation or your small business. Go to Ramsey Solutions.com taxpro Ah, I got her now. I got me ramseysolutions.com taxpro to find a CPA and enrolled agent that have been vetted by the Ramsey team. By the way, I have a local pro, and I'm telling you, good stuff. Well, I just never stress at tax time. You just don't want to mess with the irs. All right?

[Jade Warshaw]

I also want to do.

[Ken Coleman]

I didn't mean to rhyme there.

[Jade Warshaw]

That was good.

[Ken Coleman]

Thank you.

[Jade Warshaw]

You need a gold chain.

[Ken Coleman]

Yeah.

[Jade Warshaw]

All I want to do is go on, you know, my bank sites or my investing sites and print off the little tax form and turn it in. I don't want to turn in a bunch of Stu stuff.

[Ken Coleman]

Right. I'm the same way. I just don't want to go to jail.

[Jade Warshaw]

Well, I also don't want to go to jail.

[Ken Coleman]

I wouldn't do well.

[Jade Warshaw]

No.

[Ken Coleman]

I just wouldn't look good in those stripes.

[Jade Warshaw]

I don't know, Ken. You might do too well.

[Ken Coleman]

Hey, hey, hey. I knew you were going to say that. Don't say that. It's going to give me nightmares.

[Jade Warshaw]

And I'm sorry, I got the.

[Ken Coleman]

You're a. Shivers.

[Jade Warshaw]

You're a, you know, fine looking gentleman walking into the precinct.

[Ken Coleman]

Oh, stop it right now. Let's go to Logan, who's joining us in Provo, Utah. Logan, how can we help?

[Caller]

Hey, just quick and get right to the question here is do I take equity, like refinance and take equity out of my home in order to pay for H Vac upgrade that is needed for my home?

[Jade Warshaw]

Interesting. So tell us a little bit more about the situation because what I tend to find is that if people are considering debt to solve a problem, it's usually the symptom of other issues that are playing out over time. So give me a bigger sit, give me a bigger profile on this. Are you guys currently in debt? Tell me about your income. Tell me more about your financial situation.

[Caller]

Okay, so, so kind of background just recently found you guys like the Ramsey show and everything. So I've been, been diving in and trying to see what, you know, the baby steps. And wife and I would be in that. So we don't have any other debt other than our mortgage. Good cars are all paid for, everything like that. It's just our mortgage. We have like $350,000 in equity in the house.

[Jade Warshaw]

Okay.

[Caller]

But we just recently found out that our H Vac system is pretty much. We're lucky it's still working and we're not sure how much longer it's going to work.

[Jade Warshaw]

What will it cost to fix it?

[Caller]

So it's an older system that has a type of coolant in it that I guess is no longer legal or available to use. And to update the system, it's going to cost around $18,000.

[Jade Warshaw]

18,000. Have you gotten a second opinion or is that one guy told you that?

[Caller]

So we're just out in a rural area. So it's kind of just the one guy that could come and give us the quote on it.

[Jade Warshaw]

Are you sure about that or have you really done due diligence? Because unless you live, you know, in Mayberry, I feel like there's at least got to be more than one person. Right?

[Caller]

Yeah, it's pretty, it's a pretty consistent price with, with everything that I've looked at.

[Jade Warshaw]

Okay. I'm not, I'm not convinced. I think you need a second opinion. But for now. So you've got 18,000 that you're, you're thinking it's going to Cost. Do you have any money saved anywhere?

[Caller]

We have, I think just about $1,000 in our savings, and that's just about it.

[Jade Warshaw]

Okay, $1,000 in savings. And then tell me about your income. What do you, you and your wife bring in combined every single month?

[Caller]

So we bring in. It fluctuates a little bit just because of my wife's work hours, but we're usually north of 4000amonth.

[Jade Warshaw]

Okay, north of 4000amonth. Here we are. Okay. So if I'm you, my first, like I said, first on my agenda is I. I'm getting somebody else just to come out and tell me. I just want to confirm what it is then the second part of this. And I, I will admit I'm not an H VAC professional, but if I understand right, it's. If you didn't know, now you know, I was wondering. At times it's divided into the heating side and the cooling side, right?

[Caller]

Yes.

[Jade Warshaw]

Okay.

[Caller]

Yeah.

[Jade Warshaw]

Is there a way. Is. Are you replacing the whole like dat gum thing? Like the whole thing.

[Caller]

It was. Yeah, it would have to replace the entire. The entire.

[Ken Coleman]

Just. But it's working right now. And it just needs some rare coolant.

[Jade Warshaw]

Illegal.

[Caller]

Yeah. Yeah. Legal, essentially. Yeah. So it's, it's about 21 years old, so it's, it's at its life expectancy.

[Ken Coleman]

Yeah. But let me ask.

[Jade Warshaw]

But it hasn't broke down yet.

[Ken Coleman]

If I were to find a truck full of that illegal outdated on the dark web coolant. Yeah. Would it, would it function?

[Caller]

Potentially, it's just a matter of, you know, is that, you know, how much are we going to end up having to replace, you know, kind of cost, you know, is it going to spend. Are we going to cost more in the long run trying to piece things back together as they go out?

[Ken Coleman]

Yeah, but again, you're. Listen, we're not being silly here. No, I would, I would ask. If I were in your shoes, I would find that coolant. I'll bet you can find that coolant because it's all this stuff. Is all this garbage crap coming out of Washington D.C. or your state house. I'm sorry. It's all environmental crap that 10 years from now we're going to find out there's nothing wrong with it. So in all honesty, if I was sitting in your shoes, Logan, and coolant, I would be trying to find that coolant so that I could follow Jade's advice and save up the money to where we get a whole new unit. But, like, what does the patch look like? And I Don't like the fact that we got one dude out there in the holler who's the only guy. I'm with you, J. Yeah. I mean, I don't know if they have hollers in Utah, in the south, that's what we call a hollow. But point is, get another guy in there or find that coolant somehow.

[Jade Warshaw]

Yeah, I think the coolant will buy you some time. And. Because the truth is, it hasn't broken down yet. But I like that you're thinking towards it because the time will come and it's going to be here probably before you know it. So my goal would be, okay, I'm going to get with my wife, I'm going to figure out how quickly we can save up half and then find out how long. And that way we know how long it would take to do the other half. And then I'd find a guy and say, here's what I have. I can pay you this. And then at this point. And I can pay you this at this point to get this job done. Maybe you do the right side first, and then you do the left side, or you do the hot side first, then you do the cold side and really get creative. Because if there really is only one guy, then he probably needs your business as much as you need him. So get creative on it. And then I'm looking around my house for things to sell, period. I'm like, okay, do I need this? Do I not need that? Maybe I'm picking up just temporarily, like a second job. Because the reason for all this, because I do want to address this, because plenty of people are probably like, jade, that's too much. Just take out the. The. The loan from your house. I would never do that. The purpose, when we talk about home ownership here on Ramsey, the purpose of home ownership, there's several reasons, but the ones that stand out to me are a. It's stability, right? We're taking the biggest line item on our budget and we're stabilizing it by getting into a home, right, where the payment's the same. We start to put that stability at risk when we borrow against our home. So that's number one. Number two is one of the biggest reasons to buy a home is to build equity and wealth, right? And so when we borrow against it, we're stealing from the wealth that we're accumulating. Because the truth is, when it's time to sell our house, we want. We want that cash. We don't want to look up and be like, man, my cash is gone because I bought a new water heater and my cash is gone because I over renovated a room that's not going to return its value on me. Right. So those are the two reasons. We want stability, we want wealth. So let's not rob ourselves of those two really, really important factors in homeownership. So that's why I'm pretty adamant about not doing that. Just a little background thoughts.

[Ken Coleman]

There is this R22 Freon. Is that what we're talking about?

[Caller]

I can't remember if it's that one or if it was the one before it.

[Ken Coleman]

Oh boy. I'm, I'm on the trail, folks. You know, I would be the guy trying to get myself some of that black market free, you know, a guy. But it would be fun to find him. I mean when you're staring at an eighteen thousand dollar repair, I think it might be an adventure.

[Jade Warshaw]

Go on Reddit. Go on Reddit. I bet you there's a whole Reddit.

[Ken Coleman]

Corner of the Interweb.

[Jade Warshaw]

Yeah.

[Ken Coleman]

Guaranteed there's some dude in Arkansas I feel like who's got himself barrels and barrels of this stuff.

[Jade Warshaw]

You want you some of that 922 Freon? I got it.

[Ken Coleman]

We're gonna search for it on the break. We'll be right back.

[D]

You know, one of the first things I discovered working in the financial world is how absolutely devastating it is when the breadwinner of a family dies and there's too little life insurance or none at all. Grieving families are suddenly left behind, scrambling to pay bills and trying to make ends meet. I also discovered that there are a lot of rip offs in the life insurance world like that whole life crap posing as an investment opportunity. What you need is level term life insurance, usually 10 to 12 times your income, which is the smartest, most affordable way to protect your family. The key is finding an independent broker who represents a ton of companies and works for you, not for the insurance company. This is exactly what my friend Jeff Zander and his team at Zander Insurance are all about. They shop the term life companies to find you the best options. And they've been around for over 95 years so you know they'll be there when you need them. Zander is the real deal and that's why they've handled all my personal insurance for over 25 years. I trust them and you can too. Visit Zander.com for instant online quotes or for a more personal touch. Give them a call at 800-356-4282.

[Ken Coleman]

Welcome back to the Ramsey show alongside Jade Warshaw, I'm Ken Coleman. So excited that you're with us. 888-825-5225. It's been quite the hour.

[Jade Warshaw]

We've had fun.

[Ken Coleman]

The calls have been fantastic. Very interesting. And we're having a little too much fun, so we'd love to hear from you today. Jade will help out on how to handle the money, and I'm going to help out on how to make more of it. How about that for a combo? So if that's you today, we'd love to have you jump in. We're having a good time while we coach you up. All right, let's go to Indianapolis, Indiana, where David is joining us. David, how can we help?

[Caller]

Ken, Jade, you guys are awesome.

[Ken Coleman]

Oh, thank you, sir.

[Caller]

Excited, and I'm nervous.

[Ken Coleman]

Oh, well, you're gonna do great. You sound fit. You got a great voice. So you're already off to a great start.

[Caller]

Thanks. My question is, I was wondering if I should save up money or go back into investing. The reason is I. I was feeling fatigued. I went to the doctor, they gave me an ekg, and I left the doctor with stage four cancer diagnosis.

[Ken Coleman]

Oh, David.

[Caller]

So I'm on chemotherapy right now. Yeah. But the Lord's going to help me through this. We're going to make it facts.

[Jade Warshaw]

Yes.

[Ken Coleman]

David, you're amazing. Your mindset and your spirit is already to be commended. So sorry. You're dealing with it. So how long ago was the diagnosis?

[Caller]

It was in December, and I've been doing chemotherapy for about a month.

[Ken Coleman]

How are you doing?

[Jade Warshaw]

How are you feeling?

[Caller]

Well, you know, the first round, I had some side effects. The second round was a little bit better. The third round starts this Wednesday. So just dealing with it and, you know, getting some side effects and stuff like that. But I got a good job, good insurance and stuff like that. Good.

[Jade Warshaw]

Is it just you, or do you have a family?

[Caller]

My daughter lives here, and I do have family, and I've got friends and got lots of support from the church and just everybody around me. I'm really blessed.

[Jade Warshaw]

Okay, so you've got some support. I'm glad that you've got that. Hate that you're going through it, but I'm glad that you've got a good support system around you because you'll need that. Um, so you asked about saving money or investing. Can you break that down for me? What's. What's the money for? What are you thinking about here?

[Caller]

Well, I quit investing because I was paying things off. I believe I'm in stage four. Now, I. I only have my mortgage and my HELOC.

[Jade Warshaw]

Okay. How much is the HELOC?

[Caller]

22,000.

[Jade Warshaw]

Okay. And how much is the mortgage?

[Caller]

60,000.

[Jade Warshaw]

60,000. Okay, you're almost there. And not bad. Not. Not bad. What do you. What are you earning right now, every month or every year?

[Caller]

Right Now I'm making 80k, but I'm burning up sick leave. Right now I'm on FMLA with the intent of probably going into disability retirement, federal retirement, which would start out at 60% of what I was making and then 40% of what I was making until I turned 62.

[Ken Coleman]

What do you have?

[Caller]

SSDI. I've got 6,000 in my emergency fund, which is about three months.

[Ken Coleman]

Okay.

[Caller]

I did have eight in there, but I had a water heater go out.

[Jade Warshaw]

Yeah.

[Ken Coleman]

But that's why it's there.

[Caller]

But didn't freak me out. I just said, yeah, go ahead. Let's do it.

[Jade Warshaw]

Nice. So, yeah, you know, if I were in your shoes, I. Probably my biggest goal right now would just be stacking up a bunch of cash. Yeah. And I just throw it in, you know, high Yield savings account and have it there so that if something pops up, if there's a treatment I want to do and I have to pay out of pocket because it's not a network. Like, do you see what I'm saying? So my goal would be stacking up money so that I can use it for health opportunities or for, you know, other things that pop up. And then when you're done on the other side of this and you whooped cancer's butt, then you can take that money and say, all right, what's the next thing?

[Caller]

Pay stuff off.

[Jade Warshaw]

Yeah.

[Caller]

I've already maxed out my out of pocket for this year on the insurance.

[Jade Warshaw]

Good.

[Caller]

So that. That should. Everything should be covered.

[Jade Warshaw]

Okay. But, you know, things do pop up.

[Caller]

Ira at work.

[Jade Warshaw]

Okay, good. Are and are. Did you say you are investing or.

[Caller]

You paused that I was investing, and then I paused it because, you know, I listen to you guys a lot, and I was like, you know, I could be putting that extra $800 a month towards these bills. And I was paying stuff off, and I was at the point where I was ready to start reinvesting. And then, of course, I went to the doctor and they said, guess what?

[Jade Warshaw]

I mean, technically speaking. I mean, again, this is not for me to say that you need to be dealing with this right now, because I don't necessarily think that you do. Technically speaking, with the amount of the heloc I'd count that as a baby step two item and say, hey, I'd pay that off first and I'd call it baby step two. And for that reason, you would pause investing so more money can go towards paying that 22,000 off fast. And then once you were done with that, I'd re, you know, start investing again. But that's for later. Again, I think your biggest focus right now is getting well and knowing that, you know, you've got some money stashed aside and you have a piece about that. Because like I said, you never know what trials might come up that maybe insurance doesn't cover, but you want to jump into one, that sort of thing.

[Caller]

That is true.

[Ken Coleman]

Yeah. Hang in there, David. I agree with my colleague on this one. I. Let's just stack cash right now because you can always move that cash back into the baby steps and keep on investing. Turn that back on once you get on the other side of this.

[Caller]

So that's true. I was thinking that, but I wanted to confirm.

[Ken Coleman]

No. Thank you for calling.

[Jade Warshaw]

How old's your daughter?

[Caller]

She's 26.

[Jade Warshaw]

Okay. Okay, good. Okay. Yeah, I.

[Caller]

So she's keeping an eye on me and stuff too, so.

[Jade Warshaw]

Okay, that's good. Very good, Very good.

[Ken Coleman]

Yeah, love that. Thank you, David. Let's go to MO in Winnipeg, Canada. MO how can we help today?

[Caller]

Hey, how's it going, guys?

[Ken Coleman]

Good, how are you?

[Caller]

I'm good. Good. So I'm re. I'm just about to graduate from my undergrad in criminology and I have, I'm in zero debt. I haven't had debt actually at all in my life. But flight school, I'm thinking of going to flight school after. And flight school costs about 7 minimum 70,000 for 18 months. And so I was just wondering, should I actually go into debt and take out a student loan for that because I can't pay it all in cash. That's just, you know, that's just an insane amount of money. And that's just the minimum cost. I'm going to like, one of the cheapest schools in Canada.

[Ken Coleman]

Is that 70,000 total for the program?

[Caller]

Total for all the licenses?

[Ken Coleman]

Yes. Okay, how much do you have set aside right now? Since you have no debt? How much cash do you have?

[Caller]

I don't have any set aside because I just paid to it. I just paid tuition going out of my pocket.

[Ken Coleman]

So how did you come up with the money to pay for tuition?

[Caller]

So that's just. But I still live with my parents, so I don't have to worry about rent for now. And yeah, I work for PepsiCo, so I make around 2500amonth. And yeah, just aggressively saving and then paying, paying tuition every four months.

[Ken Coleman]

Good for you. So I have a question about the criminology. Did I hear you say criminology degree?

[Caller]

Yeah, that's correct. My original plan was to go into law school.

[Ken Coleman]

Yeah. Okay. But I'm just curious because again, I don't know the Canadian situation, but is there or are there multiple jobs that you can with that degree move right into for a season and make a good bit more than you're making right now? With PepsiCo?

[Caller]

With PepsiCo, I could move up to a sales position where. Because right now I just do the manual labor stuff, which is like merchandising. I could move into sales, but that would require a full time availability. Since I'm in uni, I can only work part time.

[Ken Coleman]

Okay. When are you finishing up? Sorry, I'm. When are you finishing up uni?

[Caller]

That would be. So my last semester would be. I would graduate May of next year.

[Ken Coleman]

May of next year.

[Caller]

Yeah.

[Ken Coleman]

Okay, well, so here I know Jay and I are on the same page on this one. I mean, here's the deal. You've already made enough money to be able to cash flow through college. I would come out of school and I would upgrade my job full time. I'd take a full time upgrade if I could get one with PepsiCo. They already got you in the building. Let's see what you could do. Okay. Or I would use that criminology degree to go get something that if, if possible would make me more money. And here's why I would, I would work for a couple of years if that's what it took.

[Jade Warshaw]

Yeah.

[Ken Coleman]

To actually save the money for flight school. Because I, I've just talked to so many people on this issue. In the States, it's, it's, it's $100,000. Sometimes we hear that number. So yeah, it's a lot of money. And you don't want to be trying to get out there, lowest level, flying in the friendly skies, stressed out over that. So I would take my time. The flight school will always be there. We would tell you to save up. You can save up more if you've got a better job and you're not working in college. You can work like crazy. You're not going to class anymore. So that would be our advice, my friend.

[Jade Warshaw]

I don't want to stressed out pilot with student loans.

[Ken Coleman]

And let me tell you something, the need is there. The opportunity is going to be there. Just be patient and you'd be surprised how quickly you can earn 70 grand. So there's our thoughts. All right, good hour. Jade, thanks so much for being with me. Thanks to James Childs and our fearless crew. This is the Ramsey Show.

[D]

People tell me about their experiences with big banks all the time. Bad service fees that nickel and dime them to death and predatory lending that tries to catch them in never ending cycles of debt. So if you're ready for a bank that puts people over profits, check out Fairwinds Credit Union. I recommend Fairwinds because they share our Ramsey values of helping people get out of debt and live generously. If you go to fairwinds.org Ramsey you'll see the combined checking and savings account bundle they created just for Ramsey fans. This account bundle is designed to help you take control of your finances and stay out of debt. And Fairwinds also has a great mobile app that's safe and secure so you can manage your transactions with peace of mind. Fairwinds has been helping people avoid big bank traps for 75 years. So go to Fairwinds.org Ramsey to learn more. It's easy to join no matter where you live. That's F A I R w I n d s.org Ramsey welcome to the.

[Ken Coleman]

Ramsey Show America where we coach you to win in your money. Winning your profession and winning your relationships alongside the incomparable J To Warshaw. I'm Ken Coleman and we're excited to be together for you all. 888-2552-258882-55225. Let's go to Dayton, Ohio. Jeremiah joins us there. Jeremiah, how can we help today?

[Caller]

Hey, how's it going? So in April 4, my lease is up in my apartment with my girlfriend. But we've been having some relationship problems ever since we moved in together. It's always fun times.

[Ken Coleman]

You know, that's what marriage is like in your first year. Nobody ever tells you that the first year of marriage is what you're experiencing. You just learn how to live together and there's all kinds of problems.

[Caller]

Yeah, I hear that a lot from my dad. I was curious about. We have been talking to my dad about moving back in with him. He would charge me $400 a month in rent. I do have medical bills coming up from a motorcycle accident that happened.

[Ken Coleman]

Oh no.

[Caller]

And then.

[Ken Coleman]

You okay?

[Caller]

I turned out okay. Yeah, I turned out just fine.

[Ken Coleman]

So I got a question and then the part quick question.

[Caller]

Yeah.

[Ken Coleman]

Before we get to the money because I think this Plays into the money issue. You've been living with your girlfriend for how long?

[Caller]

A year ago? Last year? April 4th.

[Ken Coleman]

A year. And you develop some real relationships. Okay. And you develop some real relationship issues now that you're living together. And. And so you think the solve is to. To stay living together, but just go back to dad's house.

[Caller]

We would go separate. She would go to her parents, and I would go to my dad.

[Ken Coleman]

Oh, I missed that. Okay. I. Okay. That's actually okay. I'm feeling better with that. I didn't know because you guys got to figure out your relationship issue, and living together is probably not the best way to do it, in my opinion. I know. I'm old school.

[Jade Warshaw]

Does the issue have to do with money or is it separate?

[Caller]

She gets very angry at me over little things. And don't get me wrong, I'm not. I'm a human. I'm not perfect. I do some things wrong to myself. And see, her money issues are. She's not great with her finances. I've tried to coach her a little bit based off of your guys's teachings. He just can't really pull it together since the year we've been.

[Ken Coleman]

But is she getting angry at you over money things and you're coaching, or is she getting angry at you about other things?

[Caller]

Just house things? Say if I. I come home from work and I just kind of want to relax and do nothing. So start getting angry. Or if I don't, if I forget to do dishes sometimes, she'll get on me. Like I said, we. We take turns clean and whatnot. But.

[Jade Warshaw]

Yeah.

[Ken Coleman]

Is she okay? I gotta ask. I'm so sorry. I can't help it. Is she angry or is she just perturbed? In other words, I want you to rank it for me. Her reaction from a 1 to a 10, one being like maybe a little. A little sigh where she's rolling her eyes to angry. She's throwing something at you. You give me a ranking. What's happening?

[Caller]

I'll give it like, a solid, like five to seven. It's no throwing. We don't. We don't ever lay hands on each other or anything like that.

[Ken Coleman]

Well, thankfully, that's why I put it at 10. Throwing at you. Okay. Wow. Jade, what do you think of this? I feel like you need to get involved here.

[Jade Warshaw]

Yeah. I wanted to know how long you were dating before you moved in together.

[Ken Coleman]

Oh, good question.

[Caller]

Three years.

[Jade Warshaw]

Three years.

[Ken Coleman]

And was she angry at that time too?

[Caller]

No, it just really started since we moved in together. So this Is last year, April.

[Jade Warshaw]

This is playing into what we know, which is a lot of. I'm stepping into the waters now, Ken. You know, a lot of people when they move in together. The thought, Ken, is, I'm just gonna test it out. Like, I think I want to marry this person. I think I want to be with this person for the long haul. Let's test it out and see. But really, it causes people to go in the opposite direction, and they. There's been studies now that say that living together is. You're least likely to have a successful marriage or even see.

[Ken Coleman]

Oh, really?

[Jade Warshaw]

Yeah, because it's. It's almost like a commitment thing. It's like, you don't have to dial.

[Ken Coleman]

In full commitment, which makes those things even more irritating.

[Jade Warshaw]

Yeah, it's almost like. It's almost like a symbol of lack of commitment.

[Ken Coleman]

I think you're right. Stacy stuck with me, you know?

[Jade Warshaw]

Yeah.

[Ken Coleman]

Like, we got paper. We got some ink. Yeah. You got to pull all that apart. It's not easy. Yeah, I get what you're saying.

[Jade Warshaw]

Where. Yeah, exactly. Whereas it's like, hey, I don't want to marry you. I'll live with you. It's like the ultimate signal of lack of commitment. I don't want to marry you. So I wonder if under, like, underlying, she's feeling something. It's like, I'm with this guy, and she might have marriage expectations, but you're not actually married. And so you guys are feeling that tension of the reality versus what you kind of think it is in your minds.

[Ken Coleman]

Although I will say this, Jeremiah, you.

[Caller]

Are probably 100% on.

[Ken Coleman]

She is.

[Caller]

Ever since. Yeah, she's big on marriage. She's always kind of mentioned that to me, but I've always been a little skeptical just because, I don't know. It's. It's tough out there.

[Ken Coleman]

Well, Jeremiah, this is where the rubber meets the road. As it relates to my advice, it's true. You need to understand, young man, that if you put a ring on her finger and you marry her and you.

[Jade Warshaw]

Come home, it ain't no going back.

[Ken Coleman]

And you just jump on the couch and you don't do what she's expecting you to do as it relates to your house stuff, she's going to still be angry. So we've got to figure out, relationally, what is your part in this deal.

[Jade Warshaw]

And.

[Ken Coleman]

And where do you need to step up? And then if. Now, listen to me, Jeremiah. If you step up, does she chill out? And so I'm gonna. I'm gonna make a ruling Here.

[Jade Warshaw]

Yeah. Make a ruling.

[Caller]

I.

[Ken Coleman]

The starting question was, should we renew the lease? The answer is no. I think you need to go your separate ways for six months, and let's figure you two out. And you, young man, need to start with, do you want to marry this young lady?

[Jade Warshaw]

And the answer doesn't have to be.

[Ken Coleman]

Yes, and if it's not, fine. But you owe that to her because she's made it clear she wants to get married. You're just kind of kicking the can down the road. Yeah, I think I'd start there. Let's separate. Let's live apart. I'm not saying break.

[Jade Warshaw]

Things get better.

[Ken Coleman]

Yeah, I'm not saying break up, but let's not live together, and let's see where we want to go. We're on Team Jeremiah because you called, but I'll be honest with you. If she called, I'd have been on her team.

[Jade Warshaw]

You know, when. When you. When you separate your living situation, like we said, you're still dating, then take that time to start figuring out what it would look like if. If you're there. I don't. I don't know if you are, but if you are there. If we were to be married, what would it look like? What are. What do we see for each other? What are gender roles? What do you think a man's role is? What do you think a woman's role is? Like? You guys talk about that stuff because you did get a little glimpse of. You thought you could come home and pop open a beer and watch the game. And she said, no, no, no, no, no. There's dishes in the kitchen. So you guys have to talk about that and. And arrive at what that means for both of you. And, of course, if you do get married, go through marriage counseling and go through financial peace University.

[Ken Coleman]

Yeah, I agree. In your house, who does the dishes?

[Jade Warshaw]

Whoever doesn't cook does the dishes.

[Ken Coleman]

Oh, really?

[Jade Warshaw]

So if you cook like me, I rarely do the dishes. It's usually Sam that does them, and.

[Ken Coleman]

That'S a fair exchange.

[Jade Warshaw]

Yeah. Now, every once in a while, if I really feel like the meal. How can I put it? Like, if it really was a lot of dishes and the meal was just like, why were there so many dishes? I'll help him out a little bit.

[Ken Coleman]

Yeah, I. I'm the dishwasher king.

[Jade Warshaw]

Yeah, yeah. You put them in the dishwasher or you wash them by hand?

[Ken Coleman]

Oh, no. What are we talking about? It's 20, 25. Who washes by hand anymore?

[Jade Warshaw]

I. Well, I have certain dishes that I Don't put in the dishwasher.

[Ken Coleman]

Well, of course. The fine china. Yeah, yeah. I'm the dishes guy.

[Jade Warshaw]

Yeah.

[Ken Coleman]

Stacy will help when it's a lot of dishes. But I, I'm on the kids all.

[Jade Warshaw]

Do you complain about it or you don't mind doing it?

[Ken Coleman]

Oh, no, no. I like it. I am famous. I like when I go to bed at night. I like the kitchen to be clean because I'm the first one up in the morning.

[Jade Warshaw]

Oh, yeah.

[Ken Coleman]

Making the coffee. And I don't like to walk into.

[Jade Warshaw]

Oh, the worst.

[Ken Coleman]

To uncleanliness.

[Jade Warshaw]

You got to have the kitchen. The counter's got to be wiped off. Floors got to be swept.

[Ken Coleman]

Yeah.

[Jade Warshaw]

Like, I don't, I don't want to.

[Ken Coleman]

See dishes in the morning.

[Jade Warshaw]

Oh, negatory.

[Ken Coleman]

It's not a good way to start my day. It messes my mind up. It's got to be clean.

[Jade Warshaw]

Agree.

[Ken Coleman]

So I'm. That's one of my things. And I got other things I got to do too. And I do them young men. I do them 50.

[Jade Warshaw]

50.

[Ken Coleman]

We'll exchange lists on the break, but be right back. This is the Ramsey Show. This show is sponsored by Better Help. You've probably heard people talk about different kinds of flags and friendships and romantic relationships. Red flags, green flags, beige flags. Listen, it can be helpful to look for patterns or unsafe behaviors in potential relationships. But all those labels can distract from what's really important. Your values and whether you and your potential partner are willing to wake up every day and choose to honor each other's values. And look, I know it can be tough sometimes to even know what's important to you in a relationship. Therapy can help you figure out what your values actually are and decide your boundaries and your non negotiables. And if you're thinking about starting therapy, try BetterHelp. BetterHelp is 100% online therapy that works with your schedule. To get started, just fill out a short online survey to get matched with a licensed therapist. If it's not the right fit, you can switch therapists at any time for no extra cost. So whether you're dating, married, building a friendship or working on yourself, do it with help from Better help. Visit betterhelp.com DeLoney to get 10% off your first month. That's BetterHelp. H E L p.com DeLoney I still remember 10 years ago, 23 years old. I was frustrated, anxious and flat broke. I had followed all the ways that toxic money culture had led me down from well meaning parents and misguided guidance counselors. And it left me with a pile of debt. But I'm telling you, it doesn't have to stay that way. Over a decade, I went from broke to millionaire and I break it all down in my new book, Breaking Free From Broke. I'm going to show you just how toxic this money system is and how you can break free from credit scores and credit cards and student loans and auto loans and investing traps and finally live a life that you're not exhausted by, a life with more margin, more options and more peace. If you want to check out the book, go to Ramsey Solutions.com store to get your copy of Breaking Free from broke. That's Ramsey Solutions.com store. All right, folks, welcome back to the Ramsey show alongside Jade Warshaw. I'm Ken Coleman. Excited to be with you here as we take your calls about your money, about your profession, about your relationships, and by the way, excited to debut a new show on the Ramsey Network. It's my new project called Front Row Seat, something I've been cooking up for a long time. Very, very excited. And this is a deep dive conversation show. That's how I broke into broadcasting many, many years ago. But we've added an element to it, Jade, and it is the audience themselves are a part of the show. So they get to sit in the room. They're in the round with us. And it's not just me asking questions or making points. These are conversations, not just a back and forth interview. The audience themselves gets to be a part of the conversation by asking questions themselves. And so we made this, it's a beautiful set. Looks fabulous on YouTube. You can also get it via podcast. So on YouTube or your favorite podcast app. It's called Front Row Seat. What are we doing? We're deep diving in three areas, content that'll help you get better as a person. So think the physical, the spiritual, the mental, the emotional, things of that nature. And then we talk about your professional development, soft skills and hard skills. And then if you're in leadership role, how to lead well. So we talk about it's get better, move up and lead well. And that's what we're doing.

[Jade Warshaw]

So it's do the math for us. I like that.

[Ken Coleman]

Oh, well, see, it depends on the age. But if you're, if you're, if you're in your late 30s, mid-30s, late 30s, 40s, you know this math really well. It's inside the Actor Studio, famous show on Bravo meets Master Class, which is a very popular app now meets MTV Unplugged.

[Jade Warshaw]

Love that. I Feel like that's a great way to describe it because someone like me, I know exactly what I'm about to get.

[Ken Coleman]

So bottom line is it's a conversation show a wide variety of guests, but you see yourself in the audience as they sit there and ask questions. So it's really fun format. It's called front row seat. Get it on YouTube, subscribe on YouTube. Like it. And you can also get it on your favorite pod podcast app. So fun stuff there. Toronto is where we're going next. And Chris is sitting there waiting for Chris. How can we help?

[Caller]

Hey, how are you doing today, guys?

[Ken Coleman]

We're having a blast. What's going on?

[D]

Not much.

[Caller]

Hey, so I'm basically 40 years old and I worked very hard for the last seven years and I paid off my mortgage. Yeah, yeah. For on my Forever house too. So I don't need to do any kind of movements or anything like that.

[Jade Warshaw]

Forever House, Wow.

[Caller]

Yeah, yeah. It was something I wanted to do. My wife, she just supported me through it. And we're on the other side now, which is great. So new things. So now, you know, I've always not really spent a lot of money. I, you know, I do very well in my career, but I don't live that way. I got two cars that are both owned. The one needs to be replaced and maybe a year or three, you know, but so some upcoming expense there. Now I've never been into the investment part or anything like that, but now that I've got my house paid off, I need to start looking at how does my money work for me?

[Jade Warshaw]

Absolutely.

[Caller]

Because I've always been working so hard on getting it. So I'm not paying somebody else money to borrow money. I don't know, do I start looking at, you know, maybe investing in a house and maybe making. Renting it out and paying that mortgage myself to maybe make that only a 10 year mortgage. So then in 10 years, that's free money to me every month. Or do I start dabbling in investments? Like I heard a lot. Well, I've been doing $10 every two weeks for the last two years because all my friends talk to me about investing.

[Jade Warshaw]

And what did that. What are you at now? What's your nest egg?

[Caller]

I'm at, I'm at $6,000.

[Jade Warshaw]

Okay. So in there, what that tells us, that's, that's a great. I'm glad you said that because a lot of people are into like acorns and saving the change and all that. And while I could understand that something's better than Nothing. If you adopt that kind of as your way of thinking around investing, you won't get very far. So I like that you're thinking towards this. I listen, I love that your house is paid off, but I do, at 40, I do want you to have more invested and I want you to start working towards that. Typically, the way we would have taught it is that while you're paying off your home, you would still have been investing 15% of your income. But, you know, spilled milk, we move on. So what I would say at this point for you is, yeah, you are able to invest 15% and beyond because your house is paid off and you don't have any other debt, correct?

[Caller]

No, I, the only thing I have is 30,000 on my he lock, which is a pool, which I'll have that done in a couple of months.

[Jade Warshaw]

Okay, so 30,000 as a HELOC. Yeah. I would focus in, I get that paid off lickety split. Like immediately. And then I would invest, I would invest 15 and beyond. When you look at your monthly budget, how much do you think that you could put towards investing and still, like, percentage wise and still, you know, enjoy the life that you've set up for yourself?

[Caller]

Well, for easy math, right now I'm paying the pool $1300 every two weeks to the pool. On top of when I get commission checks, I just throw those towards it. Right. But that's easy to switch over to investments in, in two months time.

[Jade Warshaw]

Okay. Yeah. So you'd be putting 2600. 2600 every. Okay. And is that kind of maximum for you or do you think there's even more? And what percentage.

[Caller]

Oh, I could do, I can do more because that does not even include my commissions that I get every month. First, first paycheck of every month. So.

[Jade Warshaw]

So what would 15% be for you if you, if you invested 15% of gross income, what number would that be?

[Caller]

So the number after taxes times 15.

[Jade Warshaw]

Before. Before, before taxes, gross.

[Caller]

Well, I make like 340k a year Canadian though. And then, but like, you know, we get, we get tax. I get taxed pretty highly, so I take home about half of that.

[Jade Warshaw]

Okay, but we want the number before taxes.

[Ken Coleman]

So it's 45,000 if he did it per year.

[Jade Warshaw]

Yeah.

[Caller]

Yep.

[Jade Warshaw]

Okay. So do you have that, Is that available to you in your budget?

[Caller]

Yeah, I can, I can make my budget however I need to make it.

[Jade Warshaw]

Okay. So that, what I'm getting at is that 34, 3500. That's the baseline for you of investing.

[Caller]

And since your house Hundred dollars a month.

[Jade Warshaw]

And since your house is paid off, you could go beyond that, and you should go beyond that. And I would. In this case, I would probably start there before I'd go to real estate, and I'd build up a pretty decent nest egg. And then when you start feeling like, okay, like I'm doing well, then if you wanted to also save up and buy a piece of real estate in cash, you could. But that's kind of what I'm doing now, is just kind of the math to see where you would end up. So I put in the 6,000 that you already have saved. And I thought, okay, he's 40 years old. Maybe he, you know, retires by the time he's 62. If you put that 3, 400 aside every month, that's 3.2 million.

[Caller]

Okay.

[Jade Warshaw]

Okay. So you can see that's just the starting point. So if you add beyond that, you know, you could be doing really, really well. But it's just to say, like, listen, it's not too late at all, but you've really got to be diligent about.

[Caller]

This, and that's not a problem at all. Right. So with no mortgage, that's. That makes that very easy to achieve, right?

[Jade Warshaw]

Yeah, exactly.

[Caller]

So, and when. When you talk about investments, like I said, when I was paying off my house, everybody was calling me crazy because I should be investing that money. And so I started doing $10 here and there and just kind of learning. You can't make money buying and selling day trading.

[Jade Warshaw]

I learned that you're right on.

[Caller]

On the cheap, which was my whole reason of only doing $10 now. Now that I'm doing larger figures. You know, the thought I have is that I always hear about the s and P500, which I have a little bit in that. Is that where I really should be kind of focusing my investment?

[Jade Warshaw]

I love this question. I. And I'm glad you asked it. Yeah. We're not talking about day trading at all. So if I were you, and this is the advice I'd give to anybody, so the first place I'd start is with my 401K. Do you have a 401K through your job?

[Caller]

We have RRSPs in Canada.

[Jade Warshaw]

Okay. Yeah. Resps. Do you guys get matches for that? Is there a company match?

[Caller]

Not mine, no.

[Jade Warshaw]

Okay, so if there's no. And I. I understand there's differences in U.S. and Canada. So what we would say here is if you have a 401k or an resp. That has a match, you'd start There because it's free money. But if there is no match, then here in the States we have basically be a, a Roth ira, which is, you know, money that's already taxed. You know, you're paying taxes on the money, then it's going, you're going and investing that money so that when you pull it out later, you've already paid taxes on it. So we like anything here that has a Roth treatment. So the Canadian version of that, I'm not sure what it is, but I'd go for that. Max it out yearly. And then after I've maxed that out, if there's, if there's still money, I'd go back to that resp and fill that out. I don't know what the max is for Canada, but I try to max it out. And if you can do those two things, you're really going to be well off.

[Ken Coleman]

Good call. Gotta run. This is the Ramsey Show.

[D]

What does the future hold for business? Ask nine experts and you'll get 10 different answers. Economic growth or a recession? Business taxes will go up or down. AI will help us work or it will replace us all. But there's no such thing as a crystal ball. That's why more than 40,000 businesses have future proofed themselves with NetSuite by Oracle, the number one cloud enterprise resource planning system. Ramsey Solutions uses NetSuite. And you should, too. Whether your company's earning millions or even hundreds of millions, NetSuite helps you respond to immediate challenges and seize your biggest opportunities with one unified business management suite. There's only one source of truth for the visibility and control you need to make quick decisions. NetSuite's real time insights and forecasting help you see into the future with actionable data. And when you're closing the books in days, not weeks, you can spend less time looking backward and more time focusing on what's next. And speaking of what's Next, download the CFO's guide to AI and machine learning at netsuite.com Ramsey it's free at netsuite.com.

[Ken Coleman]

Ramsey people ask me all the time, George, what's your number one money saving hack? Glad you asked. Nothing makes me happier than helping another frugal friend. So here's the hack. Get on a budget. Seriously, how are you supposed to save money if you don't know how much you're spending in the first place? And that's what makes the EveryDollar budgeting app a game changer. With EveryDollar, you'll get a clear picture of your spending and from there, it's easy to see where you can get more intentional cut back and save more money. So how much money are we talking here? Well, the average EveryDollar budgeter frees up $395 in their first budget. That's the hack. And if you ask me, I think you're way above average and you'll save even more. So what are you doing still listening to me? Go download the EveryDollar app for free and start saving more money right now. Welcome back to the Ramsey Show. I'm Ken Coleman. Jade Warshaw with me. 88825 is the phone number. Why refi refinances defaulted private student loans builds a custom loan based on your ability to pay. Now, you guys, private student loans are different than federal student loans like Sallie Mae. So to learn more about this custom refinancing option and a lump sum payoff option you could qualify for after 24 months, go to yrefi.com Ramsey that's the letter y r e f y.com Ramsey it may not be available in all states.

[Jade Warshaw]

Okey doke. Today's question comes from Taylor in Alabama. They say I started an entry level job at a bank six months ago. I'm 19 years old and it pays about 35, 000 a year. I was recently offered a higher paying job at a different company, but I plan to go to college in the fall. I'm scared that future employers will not hire me if I only stay at the bank or another company for a few months before heading off to school. Would you recommend that I go after a new job or should I stay at my current job to avoid future employers thinking I'm a job hopper? Neither of the job options are related to my chosen career path. Ken Coleman, you're up.

[Ken Coleman]

Yeah. I don't think you're going to look like a job hopper when you're 19 and this is just you making money to go to college. So the narrative on this would be I got a chance to make more money. I was working at the bank, I got an opportunity to make more money and all of that was going towards paying my tuition, so I took it. That's the narrative. You're not a job hopper. So good question though.

[Jade Warshaw]

But what constitutes a job Hopper?

[Ken Coleman]

I don't think there's any set rule, but if you were to look at one's resume and you were to see multiple jobs in a span of a year and a half to two years.

[Jade Warshaw]

Like three or four, and it doesn't.

[Ken Coleman]

Have a narrative in other words, it wasn't. I got promoted. Ah, okay. Which is. That's not job hopping. That is I got promoted going to the next level. It's not. I got recruited, and so I was at company A, Company B came along with a great offer, and so I. I upgraded to the tune of a title and a. And a pay bump. That doesn't make you look like a job hopper unless you keep doing that. So if you see multiple of those and it. It'll paint the picture, is my point. I see somebody goes, oh, you don't hang around for very long at all. You're looking for the next best thing. So if I hire you, I. I may not have you in six to 12 months. That's what you're worried about. But if it is a legitimate narrative and you aren't just taking the next best thing, in other words.

[Jade Warshaw]

Got it. Got it.

[Ken Coleman]

You know, you. You aren't playing the field, as they used to say. When I was in high school, you know, you were called a player if you had too many girls on your arm in. In a short amount of time, that you would have been called a player.

[Jade Warshaw]

That's right. And then somebody might say, don't hate the player, hate the game.

[Ken Coleman]

Yeah.

[Jade Warshaw]

And you're saying, but in this case, the game ain't helping you out.

[Ken Coleman]

Right. So if. If. If you want to eventually settle down and all the girls in your high school have seen you play in the field, then maybe they don't trust you.

[Jade Warshaw]

Like, we don't want you over.

[Ken Coleman]

Same deal with a potential employer. They want to feel like you're. You're the marrying type.

[Jade Warshaw]

Okay.

[Ken Coleman]

Right.

[Jade Warshaw]

Good. Good. Good job, Ken.

[Ken Coleman]

So it's kind of straightforward common sense. Let's go to Shannon in Phoenix, Arizona. Shannon, how can we help?

[Caller]

Hi. Thank you for taking my call.

[Ken Coleman]

Sure. What's up?

[Caller]

I'm in a mess, so. Oh, well, I don't know. This is dramatic. Okay, so my mortgage payment is 4,500amonth, and now we just bought this house in June, and the income has changed, and so I own my own business. So it's definitely. It fluctuates, but I make between 4 to 6,000amonth, and then my husband has an income of 4,000amonth currently. Okay, so that is. That's what we're looking at.

[Ken Coleman]

So on a really good month, your mortgage is still about 50%.

[Jade Warshaw]

Ooh, mama.

[Ken Coleman]

If not more of your income.

[Caller]

Yeah. If not more. Yeah.

[Jade Warshaw]

Okay. And you said the income changed. What was it before? Was it ever a good idea well, probably.

[Caller]

No, no, that is probably not there. We own another house too.

[Ken Coleman]

I don't know.

[Caller]

How much do you want to know?

[Jade Warshaw]

I want it to. Let me. Tell me the tea. Spill it.

[Caller]

So we moved and we had another home and we were trying to sell it, and apparently when we went into escrow and inspection and stuff, the foundation needs to be replaced and that was like $140,000. So long story short, we still have that home.

[Jade Warshaw]

Did you fix the foundation?

[Caller]

No, we are working on that because it's $140,000. This has just been.

[Jade Warshaw]

Anyway, so tell me before you move on. So that house.

[Caller]

Yes.

[Jade Warshaw]

What do you owe on it and what's it worth barring the fixed foundation?

[Caller]

So we owe about 6, 650,000 on it. And it was being listed for 1.1 million, but with the foundation issue, all the buyers were scared to even take it. So with the rent, we make fourteen hundred dollars profit a month.

[Jade Warshaw]

Okay. Okay. Yeah. Yes and no. You and I's definition of profit is different because you've got a lot of money sunk into it. Okay, 100. Got it. So you've got this one house. If you fix the foundation, it's worth 1.1. Yeah. You haven't fixed it yet. Are you in the process of it or. Tell me more about that.

[Caller]

So we applied for permits and we're waiting on that. It can take up to five months. So we've just been working through that the last couple.

[Jade Warshaw]

Would you pay for it?

[Caller]

Exactly. I would have to pull out a heloc and the whole thing is just a nightmare. So.

[Jade Warshaw]

Okay. Have you done the research on if you were to sell it as is? What? I mean, I know you said certain realtors wouldn't touch it, but I'm sure certain realtors would. Well, what would that look like as far as the value?

[Caller]

Well, we tried just to give it away for even. 950 and all the.

[Jade Warshaw]

That doesn't feel like a giveaway. Let me, let me. That's not a giveaway. That's. You just less the value of getting it fixed.

[Caller]

Well, we do owe about $150,000 in solar.

[Jade Warshaw]

Okay. But that's not on the next buyer. You. You chose that, right?

[Caller]

Well, yeah. I just mean in order not to take.

[Jade Warshaw]

For you to not take the hit. Yeah.

[Caller]

Yeah.

[Jade Warshaw]

So I think you're gonna. You might. You might end up like eating. Eating a big loss on this house. You might. I mean, if you can carry it and get this foundation fixed in cash, then I. But I. But I would not Take out more debt to fix this house. So there's that.

[Ken Coleman]

Can I ask really quick, how far away are these two houses? The one you're living in now versus the one.

[Caller]

How far a state away?

[Ken Coleman]

Oh, boy.

[Caller]

Six hours. Oh, yeah.

[Jade Warshaw]

And you said there's also 150 in solar. That's a separate loan.

[Caller]

Yeah.

[Jade Warshaw]

Okay. And they're stay away.

[Ken Coleman]

And you moved. You moved to where you are now because of your husband's job or your business?

[Caller]

My. Well, originally it was. It was my husband's job. He's. He's been in the military forever, so we moved here and anyway, we're staying here. Yeah. Okay. So Shannon shouldn't have bought this house, but.

[Jade Warshaw]

Yeah, tell me. Tell me about your current house because this may be your way out of all of this. Your current house. What, what. What's. What do you owe on it and what's it worth?

[Caller]

So we bought it for 460. 460,000. And when I just called a realtor, I got a Dave Ramsey realtor, and she told me, because we bought it just in June, that we'd probably, with closing costs and everything, probably take about a $30,000 loss.

[Jade Warshaw]

Yeah. Okay. Yeah, you're probably right.

[Caller]

I mean, she's like, I don't know, based on it. Yeah. So.

[Jade Warshaw]

So that's not an option. Like selling that for profit's not an option for you right now, which I wondered if it would be. Yeah. If I were you.

[Ken Coleman]

Well, what is rent? What if you guys were renting in. In your area right now? What would that set you back?

[Caller]

Yeah. So rent here is amazing. Well, relative. So we could. We could get a rent, the same equivalent home for maybe 2000 or 20 $200 a month at the most.

[Jade Warshaw]

Yeah. The only thing is, I don't want you adding more loss to this in the form of $30,000 in fees.

[Ken Coleman]

Yeah.

[Jade Warshaw]

So I'd ride. I'd hang out for a little while in this home. If you can, to get right side up on it. You can make it.

[Ken Coleman]

You can come up with that money.

[Jade Warshaw]

Yeah.

[Ken Coleman]

Then get out, then rent, take care of this other place, estate away and get out of that. It feels like that's the progression.

[Jade Warshaw]

That's the only way. The good news is, like, you are getting some money from rent on this just to pay the mortgage. But I. It's a hot potato. I'm going to try to get out of this as quickly as I can before it burns your hand. Oh, this is a tough one. I feel for you.

[Ken Coleman]

You had to go with Hot potato for people living in Phoenix. You had to go with the burn.

[Jade Warshaw]

Yeah, it's hot.

[Ken Coleman]

It is. This is the Ramsey Show.

[D]

These days the Internet is chock full of so called investing advice from random goobs with zero qualifications. Listen folks, you deserve guidance from someone who knows what the flip they're talking about. That's why I recommend the Smartvestor program. Smartvestors can help you find a professional financial advisor who can teach you to make your own best decisions with your own money. Get connected@ramsey solutions.com smartvestor again ramseysolutions.com smartvestor.

[Ken Coleman]

Ramsey Solutions is a paid non client promoter of participating pros. Learn [e-mail] SmartVestor welcome back to the Ramsey Show. I'm Ken Kulmejade. Warshaw is alongside and our last caller. What a story. Yeah, they move from one state to another. Very expensive house in the one state they leave behind. Can't sell it because it's got about $150,000 worth of foundation repair.

[Jade Warshaw]

It's cracked.

[Ken Coleman]

Nobody wants it. They couldn't give it away. Or at least that was their statement. And then they moved to the Phoenix area. Oh, by the way, they also got $150,000 worth of solar on that house. They moved to the Phoenix area. Buy a house that's costing them about 4,500amonth. It's over half of their take home.

[Jade Warshaw]

Yes.

[Ken Coleman]

No, half of their gross.

[Jade Warshaw]

Yeah, it is.

[Ken Coleman]

And so we were sitting there going, okay, wow. And, and they can't sell the current house without taking about a $30,000 loss.

[Jade Warshaw]

So that's, They've hardly been in it.

[Ken Coleman]

They've hardly been in it. And so we ran up into the break there and so you were thinking through this a little bit. You wanted me to, to bring this back up because it's, they don't have a ton of options.

[Jade Warshaw]

Yeah, we, we kind of ran up against time. But then during the break, Ken, you and I, my colleague Ken Coleman.

[Ken Coleman]

Yes, that's right.

[Jade Warshaw]

Had a, he's like, you know what, really what you guys need to do, if you can attack the 30,000, that would be your loss for selling this house. That might be the way to go because then at least you can go rent. We established that they can rent for half the amount.

[Ken Coleman]

Yeah.

[Jade Warshaw]

So that gets them back into the 25 range, which is good. So if I were them, Ken, I would be looking for maybe cars to sell. Yeah, they sound like they're off the line now, but they seem like the kind that might Have a, a couple of cars and you're driving just beaters for now, but just something gain some sort of pecuniary advantage here.

[Ken Coleman]

I would be working like crazy. I mean, can we make an additional $2,500 a month?

[Jade Warshaw]

Yes, yes.

[Ken Coleman]

That would be my target. I would always look at that and go, 2,500amonth is $30,000 in 12 months.

[Jade Warshaw]

Yes.

[Ken Coleman]

Okay, so I'm going to start there at least. Okay. What would have to be true for me to bring that in, to be able to make that differences. Because now they can reset.

[Jade Warshaw]

That's right.

[Ken Coleman]

Because next the big hurdle they have is they got to come up with 150 grand to fix the foundation in another state to be able to unload that house. So I gotta tell you, there's a lot of hard work and long hours ahead of them to be able to get out of this mess. But at least they create some margin by selling the current home and getting into a rent situation.

[Jade Warshaw]

That's right. At least they're going to free up way more. They're going to free up money. Yeah. And they're not going to feel the weight of all that debt. You know, two mortgages, solar panels.

[Ken Coleman]

Can you imagine being that, that kind of up to your eyeballs and then you got a house that you can't even fix. You want to talk about the old millstone around the neck analogy? That's what that was.

[Jade Warshaw]

100.

[Ken Coleman]

So tough stuff there. But it's doable. But I mean we're talking about enormous intensity for a, for a pretty good season to dig out of that.

[Jade Warshaw]

It's a mountain.

[Ken Coleman]

Let's go to Richard in Chicago, Illinois. Richard, how can we help?

[Caller]

Hey. Yeah, my name is Richard. I'm 28 years old. So I got into a pretty bad hole of debt. All credit cards. I got a house about two years ago with my ex now. And you know, I was buying stuff for the house and then we broke up and I went down the rabbit hole of spending, you know, not being pretty financial intelligent with my money. So then I got, I'm looking at it now and I'm about 50k and that. And I was using 0% interest and now all of them are hitting that mark where the interest is starting to come.

[Jade Warshaw]

Okay, so the 50,000. The 50,000 is all credit cards.

[Caller]

Correct.

[Jade Warshaw]

And you mentioned you had a house with your ex. Is this ex girlfriend? Ex wife.

[Caller]

Ex girlfriend. Because we never got married. But the house was just mine.

[Jade Warshaw]

It's only in your name. Okay. And what do you Owe on that house.

[Caller]

I bought it at 2:30. It's my mortgage now is at 209.

[Jade Warshaw]

Okay, and what's it worth? Just curious.

[Caller]

I think about 265, 270 on a good day.

[Jade Warshaw]

Okay, and can you tell me what percentage of your take home? Is it in the right spot or is it too much? What are you paying every month?

[Caller]

I pay everything raised up from when I got it, but now it's at 2365. I take home about 43amonth. 45.

[Jade Warshaw]

Okay. So we're again, we're in a similar situation as our last call. Very similar. This is way, way more house than you can afford. Is that why you're calling, because this thing is eating your lunch?

[Caller]

Yeah, everything, you know, with all the interest going up, it's gonna look scary.

[Jade Warshaw]

Yeah.

[Ken Coleman]

Lay out the totals for us. The credit card go smallest credit card debt up to the largest.

[Caller]

Smallest. It would be for my business. I try to go into. It's about 2,800 right now, and then it goes to 4,300 and then it's 6,100. 6,700. 8, 8, 3, 3, 9,000. And then the 12,000.

[Jade Warshaw]

Yeah, I. It sounds like you bought a house that you couldn't afford, because at the time you're thinking, hey, she'll pay half, I'll pay half. We have two incomes. We can afford this. Which, I mean, you're not alone. Many people enter into things like that. The danger is, like you saw, if the relationship folds, there's nobody else on the debt on, you know, that can be on the hook for that. Unless you find yourself a roommate to buy you some time. And even that. I would only suggest that if, you know, your income is going up here in the near future. Is your income going up in the near future?

[Caller]

No, but I got a girlfriend and she's staying with me.

[Jade Warshaw]

My guy.

[Ken Coleman]

You just. You just. Oh, boy. All right.

[Jade Warshaw]

What are you doing to me? Wait a minute. We gotta call this out. Are you meaning to tell me that you're gonna put yourself back in the same situation that you just were in that you're calling here about?

[Caller]

Well, I think it was more on my responsibility. I think I. You know, after the breakup, I started spending money like it was nothing. Going on trips.

[Jade Warshaw]

But you want to know what it makes me feel like? And I'm just. I'm like Andre 3000. I'm just being honest. I feel like this is very convenient for you to just let somebody else up and move in.

[Caller]

Right. But I'm not expecting anybody to help me. She helps with, like, groceries and, you know, that's nothing else I could ask, but, you know, I'm not. I'm not trying to do that.

[Jade Warshaw]

Okay, listen, I.

[Ken Coleman]

So she's not paying any rent to you?

[Caller]

I haven't asked.

[Jade Warshaw]

No, but now this is. Then. Then it's still weird because you just have somebody living off you, and you don't want that type of lady. This is not a good.

[Caller]

You know, she buys me, you know, certain stuff. She'll give me some money, you know, for a bill here and there. She'll pay all the groceries all month.

[Ken Coleman]

Bro, you're too broke to be dating somebody who's living with you and not paying her share of the rent. That's just a fact.

[Caller]

So. So that's step one. Get him. Get her to pay half.

[Jade Warshaw]

No, step one is. Step one is. Step one is you've got to learn how to operate your living facility on your own. That's step one. And that's just you, like Richard learning to take care of Richard.

[Ken Coleman]

How about a budget, Richard?

[Jade Warshaw]

That's what I'm saying.

[Ken Coleman]

Like, so you can answer the question. How much money could you pay off debt? How much could you pay towards debt every month after you're paying off the basics, your utilities and food and gas and all that, what could you put towards debt?

[Caller]

Probably the minimums at that. Because the minimums are looking dangerous now.

[Jade Warshaw]

Yeah, he doesn't have the money because.

[Ken Coleman]

He'S at 50 trying to figure out, okay, Richard, here.

[Jade Warshaw]

Here's step one. If I'm you, step one is, you got to get out of this house. You can't afford it. You. You had a plan before. It. It didn't work. And it didn't work because, honestly, it just wasn't a good plan. You didn't know it then, but you know it now. Lesson learned. This house is too expensive. If I were you, it'd be on the market as soon as I've got it cleaned up and can take photos of it. Okay. Sell it and get into something that's no more than 25 of your take home. Nobody else's added income because it's just you right now.

[Ken Coleman]

And if you're gonna shack up with the lady, she's got to pay her portion, man. Yeah, come on.

[Jade Warshaw]

You at least want somebody who's gonna do their part. You don't.

[Ken Coleman]

Is that unacceptable in today's. I have no clue. I've been married so long, I don't even know the foggiest idea. If two People are living together and in romantic relationship. Are they. Are they both paying equal share of rent?

[Jade Warshaw]

I think so. I think.

[Ken Coleman]

Studio audience. Do we have. I don't. Yes, that's the deal.

[Jade Warshaw]

I think that's the deal. Like, if I'm. If I don't think this, the. The standard changes. If I'm a lady, which I am, I'm looking for a guy who can take care of himself. He can pay his own rent, pay for his own car, pay his bills. Da, da, da. And if I'm a guy, I think you'd be looking for the same thing in a lady. Someone who can take care of herself, not just, you know, live.

[Ken Coleman]

I mean, if we're gonna, like, be dating and we're jumping into a house, I'm gonna go, hey, this is my part of the rent. This is yours, right?

[Jade Warshaw]

Nothing wrong with that. 50. 50.

[Ken Coleman]

Sell the house, Richard.

[Jade Warshaw]

Gotta sell the house. Sell the house and stop moving in with these. Yeah, ladies.

[Ken Coleman]

She buys me stuff. Who cares? You're broke. Oh, yeah. Yeah. I'm gonna get some Pepsi at AC after that call. This is the Ramsey Show.