Your Future Depends on What You Do Today

Summary

Podcast Summary: The Ramsey Show – "Your Future Depends on What You Do Today"

Episode Overview Title: Your Future Depends on What You Do Today
Host: Ramsey Network (Hosts Rachel Cruze and Jade Harrell Warshaw)
Release Date: April 28, 2025
Description: In this episode, Rachel Cruze and Jade Harrell Warshaw, alongside financial expert Dave Ramsey, address a variety of listeners' financial and personal dilemmas. They provide actionable advice on topics ranging from teaching financial responsibility to young adults, managing mortgage payments, navigating post-divorce finances, and making informed investment decisions.

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1. Teaching Financial Responsibility to Young Adults

Caller: Marie from Huntsville, Alabama
Timestamp: 00:47 - 08:08

Issue:
Marie seeks guidance on balancing financial support for her 18-year-old son who is preparing for college. She worries that requiring her son to contribute significantly to his expenses may be too harsh.

Discussion & Advice:
Dave Ramsey commends Marie for setting clear financial expectations and advises her to gradually loosen financial controls to allow her son to develop self-discipline. He emphasizes the importance of teaching him how to budget and manage money, rather than enforcing rigid saving percentages.

Notable Quote:
Dave Ramsey (02:41): “75% is a high percentage of savings. I'm just letting you know.”

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2. Managing High Mortgage Payments

Caller: Tony from New York, New York
Timestamp: 10:19 - 19:50

Issue:
Tony contemplates allocating 50% of his take-home pay toward a new mortgage, surpassing The Ramsey Show's recommended 25% threshold. He seeks validation for his approach, given his high income and substantial savings.

Discussion & Advice:
Ramsey and the hosts caution against committing such a large portion of income to a single expense, highlighting the risks of unforeseen financial changes. They suggest considering a larger down payment to reduce monthly mortgage obligations and maintaining financial flexibility to accommodate life’s uncertainties.

Notable Quote:
Dave Ramsey (14:18): “If something changes, where does this put me?”

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3. Balancing Debt Repayment and Life Milestones

Caller: Paul from Boston, Massachusetts
Timestamp: 24:42 - 30:28

Issue:
Paul, who is approaching the final stages of paying off his debt, seeks advice on financing an engagement ring without halting his debt repayment progress.

Discussion & Advice:
The panel recommends allocating resources towards both debt repayment and saving for significant life events. They advise budgeting for the ring while continuing to address debt, ensuring that financial milestones do not impede each other.

Notable Quote:
Dave Ramsey (27:11): “Get engaged. But from a financial standpoint, do that.”

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4. Navigating Financial Independence Post-Divorce

Caller: Sarah from Philadelphia
Timestamp: 34:45 - 43:58

Issue:
Sarah, a recently divorced 19-year-old mother with no debt but limited career path, seeks advice on establishing financial stability and career direction.

Discussion & Advice:
Ramsey and the hosts encourage Sarah to focus on securing legal representation, exploring career opportunities, and utilizing her support network. They emphasize the importance of creating a clear financial plan and leveraging her skills to build a sustainable income.

Notable Quote:
Dave Ramsey (37:08): “Find somebody in your area who's a great divorce lawyer.”

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5. Financial Planning Amid Health Challenges

Caller: Kate from Berlin, Germany
Timestamp: 45:30 - 53:08

Issue:
Kate, diagnosed with stage 4 breast cancer, is uncertain about continuing 401k contributions given her health prognosis and financial responsibilities.

Discussion & Advice:
The experts advise prioritizing debt repayment and maintaining an emergency fund. They suggest balancing retirement contributions with immediate financial needs, considering alternative investment vehicles that offer liquidity in case of unforeseen expenses.

Notable Quote:
Rachel Cruze (50:14): “Have that liquid instead of in a 401k in another investment.”

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6. Addressing Tax Liabilities from 401k Withdrawals

Caller: Marty from Spokane, Washington
Timestamp: 55:11 - 59:38

Issue:
Marty faces a $140,000 tax bill due to an early withdrawal from his 401k. He seeks strategies to manage this substantial tax liability without incurring further debt.

Discussion & Advice:
The panel recommends obtaining a personal loan to cover the tax debt rather than opting for a home equity loan or IRS payment plan. They emphasize the importance of avoiding additional high-interest debt and suggest leveraging existing savings to minimize financial strain.

Notable Quote:
Rachel Cruze (56:41): “I would go pull a personal loan for it.”

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7. Deciding When to Exit a Struggling Business

Caller: Justin from Chicago
Timestamp: 59:48 - 67:26

Issue:
Justin is involved in his uncle's masonry restoration business, which, despite efficient operations, struggles with inconsistent lead generation and profitability. He contemplates whether to continue or close the business.

Discussion & Advice:
The hosts suggest evaluating the demand for their services and exploring new marketing strategies or business pivots. They also recommend considering necessary endings if the business shows no signs of sustainable growth, referencing Henry Cloud’s concept of “Unnecessary Endings” to promote healthy transitions.

Notable Quote:
Rachel Cruze (64:22): “If there's not a huge demand for the type of work that you're doing, maybe you need to pivot.”

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8. Balancing Residency and Financial Independence

Caller: David from Berlin, Germany
Timestamp: 67:37 - 75:27

Issue:
David, living with his mother while contributing to her mortgage, struggles with deciding whether to continue supporting her financially or to establish his own independent lifestyle.

Discussion & Advice:
Ramsey and the hosts advise David to have an open conversation with his mother about his need for independence. They encourage setting a timeline for moving out and exploring affordable living options to ensure both parties can maintain financial stability.

Notable Quote:
Dave Ramsey (74:41): “I would be looking for a way to move out even if it's into a small apartment.”

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9. Advising on Debt Repayment vs. Savings

Caller: Tony from Philadelphia
Timestamp: 78:29 - 85:55

Issue:
Tony seeks advice on whether his daughter and son-in-law should use their combined savings of $110,000 to eliminate $100,000 in student loan debt.

Discussion & Advice:
The panel recommends using the majority of their savings to pay off the student loans, leaving them with a modest emergency fund. They highlight the financial relief and long-term benefits of becoming debt-free, while ensuring that enough savings remain to handle unexpected expenses.

Notable Quote:
Dave Ramsey (80:44): “They should take the $100,000 and pay off the $100,000 of student loans. They'll have $10,000 of savings.”

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Conclusion Throughout the episode, The Ramsey Show emphasizes the importance of proactive financial planning, balanced budgeting, and making informed decisions to secure a stable financial future. Dave Ramsey and the hosts provide compassionate yet firm guidance, encouraging listeners to take control of their finances today to shape a prosperous tomorrow.

Key Takeaways:

• Educate and Empower Young Adults: Gradually reduce financial oversight to foster independence.
• Balanced Mortgage Payments: Avoid allocating excessive income to single expenses to maintain financial flexibility.
• Debt Repayment with Life Events: Integrate debt repayment with saving for significant milestones.
• Post-Divorce Financial Steps: Focus on legal representation and career development to regain financial stability.
• Health and Finances: Prioritize immediate financial needs while maintaining retirement contributions.
• Tax Management: Opt for personal loans over risky alternatives to manage unexpected tax burdens.
• Business Sustainability: Regularly assess business viability and be willing to make tough decisions.
• Residential Independence: Communicate openly about financial needs and set clear timelines for personal independence.
• Debt vs. Savings Decisions: Weigh the benefits of debt elimination against maintaining an emergency fund.

Listeners are encouraged to implement these strategies to build wealth and achieve financial peace, aligning with The Ramsey Show’s mission to help individuals take control of their financial lives.

Transcript

[Rachel Cruz]

Foreign.

[Jade Warshaw]

To you by the EveryDollar app. Start budgeting for free today.

[Rachel Cruz]

Live from the headquarters of Ramsey Solutions, it's the Ramsey show, where we help people build wealth, do work that they love and create amazing relationships. I'm Rachel Cruz hosting this hour with my good friend and bestselling author Jade Warshaw. And we are here to answer your question. So give us a call, 888-825-5225. We'll be talking about your, your life, your work, your relationships, your money, all the things. So give us a call. So first up this hour, we have Marie in Huntsville, Alabama. Hi, Marie. Welcome to the show.

[Jade Warshaw]

Hey, Rachel, thank you so much for taking my call.

[Rachel Cruz]

Absolutely. How can we help?

[Jade Warshaw]

Well, I have four kids. My oldest is 18 and looking at college this fall. I am trying to, I'm wrestling, me and my husband are wrestling with how.

[Rachel Cruz]

To instill the wisdom that we want him to have.

[Jade Warshaw]

He's had a job since he was 16, on and off around school and things like that.

[Rachel Cruz]

But we've recently told him he's got.

[Jade Warshaw]

To start paying for his own gas in his old truck that we, we.

[Rachel Cruz]

Helped him pay for halfway. Like Dave teaches.

[Jade Warshaw]

And it just feels like it's a.

[Rachel Cruz]

Big burden on him.

[Jade Warshaw]

We're going to pay for his schooling, but he's got to pay for all extras. And after years he has to pay for even his schooling. So we're really trying to teach him. We want you to start learning really.

[Rachel Cruz]

How to save and manage your money. And I just, I don't know, am I being too harsh?

[Jade Warshaw]

Is it too much? He's just got a door knocking job right now. He has a full time job lined up, but it's not started yet this summer. I just, I'm trying to strike that balance between being too harsh and helping him. I just don't know. So I wanted your advice.

[Dave Ramsey]

I mean, I'm hearing, I'm listening to what you said and I feel like a lot of it's on the right track. He's, you know, he's had a job since he's 16. You've got, you've been forward with him with, hey, we're going to help you with education up until this point. Here's what we expect. I think setting expectations is such a big part of this and a huge part of college. Making sure we know, hey, this is the college you can afford here. Here's the percentage we're going to pay. Here's what we expect from you. And it sounds like you're doing all that. My Question for you would be what have you seen that's giving you pause? What have you seen that's making you feel uncertain about whether he's going to, you know, be able to carry this out going forward?

[Rachel Cruz]

Well, I guess what we've seen is from the beginning, we've always said we want you.

[Jade Warshaw]

Saving 75% has always been our rule.

[Rachel Cruz]

Wow.

[Jade Warshaw]

But just because that we just to.

[Rachel Cruz]

Set up to be able to pay.

[Jade Warshaw]

For cars and things like that.

[Rachel Cruz]

So he did real good.

[Jade Warshaw]

He bought his old truck, we met him halfway.

[Rachel Cruz]

But really since then it's been hard.

[Jade Warshaw]

For him to meet that. Something comes up, things like that, which is understandable. I know he's a teenager.

[Dave Ramsey]

75% is a high percentage of savings. I'm just letting you know.

[Rachel Cruz]

I know, but they're full.

[Jade Warshaw]

Like when they have to pay for everything. I just, I want them to get.

[Rachel Cruz]

There and, you know, have some spending money and maybe not have to work when they're in college.

[Jade Warshaw]

But right now he doesn't have anything really. And so we've recently even said if you can't figure it out with paying for gas and saving 75% and giving that, we might even pull paying for.

[Rachel Cruz]

Insurance and let him take a year.

[Jade Warshaw]

Off of having a car.

[Dave Ramsey]

Hey, Marie. Marie, you're not letting him have his full income at his disposal to do the things that you want him to do. 75% is a high amount. Like even if you think about the.

[Rachel Cruz]

Three things you can do, he's giving the other 10%. He's got 15% of his income already to do what he needs to do. Right. So am I being so now you're too. Yeah, you are. I think, I think you are. I think, I think you're being a little too legalistic about it because at, at 18, he's about to be off on his own and so he has to start to learn mistakes and maybe one month. And I'll tell you, this happened to 16 year old Rachel. When I got my checking account, mom and dad were pretty hands off. We turned 16, we got checking accounts and they put a, they put, they did put a small amount of money in every month. But I. It was not enough to do what you're saying, even though they expected us to, that we weren't allowed to ask them for money. So if we wanted more, we had to go work. And we did. So we went and did babysitting. I started even doing live events, traveling. Like, I mean, I was.

[Dave Ramsey]

You were working.

[Rachel Cruz]

We were doing stuff. And there was times, Marie, that Rachel, 16 year old Rachel would look up and it would be the 25th of the month and I didn't have anything else on the calendar for work and my tank was almost empty, literally. And being like, I can't, I don't have enough money for gas. And like, well, did you budget? And I was like, no. And I had to have real life consequences of T9 texting friends. That's all we had was T9 on our, on our cricket phones to say can you come pick me up for the football game? Right. I mean like so he needs to learn real life experience. And I'll say this too, Marie. I think a mistake parents make when it comes to money and kids, and kids especially launching into the real world is I think we want to equate it and we want to make it easy to say. And I'm not saying you're doing this Mary, but just in general, like I'm going to make them pay for their schooling because that's what my parents did and it teaches them responsibility or I'm going to make them do this and I'm not doing this for them because it's going to teach them responsibility. And that black and white thinking does not always work out because I know people that pay for their college and they're deeply in debt and horrible with money. Right. Like it does not equate responsibility. And so what I would be talking to him more and asking questions and being curious about is more of his character. Right. Does he have self discipline? Does he show up to work on time when he's supposed to? Is he responsible? Does he have self control when it comes to spending? Like these are the elements that you want to see magnified and how you money, how you manage money well as a 30, 40, 50, 60 year old, that's the determination. That's right. And so, and he's going to make.

[Dave Ramsey]

Mistakes and you can't stop it. You can't stop the mistake.

[Rachel Cruz]

Yeah.

[Dave Ramsey]

From it.

[Rachel Cruz]

Yes. So we can't like set up enough rules where that he's going to be perfect with money. Like that's just not a guarantee. So I think you guys have done a fabulous job. Marie, hear me say that you've been so intentional. You've really like you, you've worked hard. But I, we're trying, but I balance like you said, it's hard but I would, yeah. So I would, I would loosen it. Only I'm just saying that through my experience of being a teenager with Dave and Sharon Ramsey is they gave us more freedom to like do it, figure it out. Like do what you want to do because it's under their roof still. Right. And then at 18. Yeah. I mean, and beyond. We. You had to manage and budget and be wise with money. You wouldn't, you wouldn't threaten to take their car insurance if they don't aren't wise with their money this summer.

[Dave Ramsey]

I wouldn't. Because he's had, you've had such a very, very conservative amount of his money that he's even able to devote to that. So loosening the purse strings on.

[Jade Warshaw]

Money.

[Dave Ramsey]

Yeah, let him have it. But, but what Rachel is saying is so true. I heard somebody say this and it's so true. You don't teach your kid what to think. You teach them how to think. So right now you're saying you've got to save 75% and that's how to do it. How to do it. How to. But teach him what. Which is, hey, you've got to create a budget with the budget you've needed. You need to be able to do three things. Give safe spend. You get to figure out how much of that that you're doing. But just know when the spending time comes, you need to have enough there. And that way you're kind of like slowly removing your, you know, kung fu grip on how much he is saving. Does that make sense?

[Jade Warshaw]

Yes, it does.

[Dave Ramsey]

Yes.

[Rachel Cruz]

And that is the goal. Absolutely, that's the goal. And if you did that, Marie, if you went to him this afternoon and said, okay, we are not telling you how to manage your money anymore. We, we would incur. We would encourage you to give safe spend and we want you to do all three things as your parents. That's an expectation, but you have to figure it out. Do you think he has the capability and the tools and the maturity to do that? Do you think he could do it?

[Jade Warshaw]

I think he definitely can.

[Rachel Cruz]

But I mean, we're still an 18 year old at times.

[Dave Ramsey]

Sure. You know, like, I mean, definitely.

[Jade Warshaw]

Like there's ability there for sure.

[Dave Ramsey]

Yeah.

[Rachel Cruz]

So I think. Yeah. So I would, I would say, I would want to have the confidence that he can do it under your roof on his own. Because when mistakes are made, you're there to help guide and direct. Not to shame and all of that. Right. But to guide and direct. Because the truth is you're not going to have that control over him in the next few months. If he's graduating this May. That's. He's going to be, he's going to be long gone. You know what I mean in four months, so. So he's got to figure it out. And under your roof is the best safety net. Marie. You guys are doing a great job. Thanks for the foreign.

[Jade Warshaw]

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[Rachel Cruz]

Up next, we're going to New York, New York, and we have Tony on the line. Hi, Tony, welcome to the show.

[Jade Warshaw]

Hi, how are you?

[Rachel Cruz]

We're doing great. How can we help?

[Jade Warshaw]

So very quickly, my question is, I'm looking to buy a new home. I would like to be putting 50% of my take home pay towards the mortgage of that home. I know you guys say to do 25%, so before you say no, I'm hoping to you hear out my details on the numbers.

[Dave Ramsey]

Okay.

[Jade Warshaw]

So my wife and I have a relatively high income, but we're living well below our means. So every month we're saving, you know, easily what it would cost to be putting 50% of our income towards a mortgage. So combined my wife and I are at about 350 a year.

[Dave Ramsey]

Okay, and how much of that do.

[Rachel Cruz]

You take home like per month, what do you guys are bringing home?

[Jade Warshaw]

Right around somewhere between 18 and 19.

[Rachel Cruz]

Okay.

[Dave Ramsey]

Okay. So you want to buy, have a.

[Jade Warshaw]

Mortgage that's $8,000, probably closer to $9,000. Yes.

[Dave Ramsey]

Okay. And keep pleading your case.

[Jade Warshaw]

So we currently, so we currently own a home. It's an apartment. The mortgage on that one is about 5,000. So we easily make those payments. And then on top of that are saving another $5,000 a month. This is, you know, that $18,000, $19,000 that we're taking home. That's after doing our for maxing out our 401k contributions, all of Our. You know, all of that when you.

[Dave Ramsey]

Say maxing out, is that 15% or you could. You could give more and still max it out, is what I'm saying.

[Jade Warshaw]

It's. I mean, the 401k contribution is like $23,000 a year that we do, but we both do that, so it's $46,000 a year that we're contributing to our 401ks.

[Dave Ramsey]

Okay.

[Jade Warshaw]

So that's probably right around 15%.

[Dave Ramsey]

Okay.

[Rachel Cruz]

Mm.

[Dave Ramsey]

Keep going.

[Jade Warshaw]

So.

[Rachel Cruz]

So, yes. You're basically saying we are doing everything we should be doing, and we don't spend anything, so we just have all this money, and we'd rather spend it on a mortgage than something else.

[Jade Warshaw]

Exactly. You know, drive a car that's eight years old, fully paid off, we have no interest in another one. We don't spend money on clothes.

[Rachel Cruz]

So my question is, Tony. Yeah. If you guys have all this, could you put a larger down payment somewhere, and then that would lower your mortgage payment?

[Jade Warshaw]

So we're still. You know, we are. We do have about $300,000 that we're looking to put as down payment. You know, in addition to the income that I gave you, that's like my W2 income, I do have a small consulting business where I make, you know, a very varied income every year that's kind of unpredictable. So, like, all the money that I get from that is just going towards, like, the down payment fund. And then once we do buy a second home, we would be dumping any money I get into that towards the principal.

[Dave Ramsey]

What's.

[Jade Warshaw]

After.

[Dave Ramsey]

What's the split on your income? Who makes what?

[Jade Warshaw]

I make probably about 250, and then my wife makes somewhere around 125.

[Dave Ramsey]

Okay. So here's where my mind goes. I can understand what you're thinking, which is as your income goes up, the percentage feels like it goes further. Right. That 50 that you have left over feels like it goes further than if somebody were making $60,000 a year and said, hey, I want this to be 50. Do you see what I'm saying? So I understand where you're going there. Where my mind goes is I am of the mind, where there's certain ratios that they're just locked in because if life changes, you're still protected. So if something happens and your wife is like, hey, now, I'm gonna stay home, and. Or if. If. Do you see what I'm saying? Like, if something changes.

[Rachel Cruz]

Y'all have kids, Tony?

[Jade Warshaw]

We have two already, so both. You know, they're both actually entering school, so my wife's thinking about, you know, being more aggressive towards her career now.

[Dave Ramsey]

Yeah, they're both, which I hope, I think she should. I just go towards if something changes, where does this put me? And these are just things to play out with your wife. Where does that put me? The other thing I think just in general, percentage wise, okay, if I'm putting 50% towards my mortgage and then if I'm giving 15% in my IRA contributions, Roth IRA, 401k retirement and then let's say I'm a generous person, so I'm giving at least 10% now I'm at 75% and I haven't saved for kids college, I haven't put extra on my mortgage, I haven't done any of those other things. And so suddenly no matter what, that pool does start to shrink a lot. And that's kind of where the methodology of that comes from. And I don't think that you out earned that feeling, if that makes sense.

[Jade Warshaw]

Okay, all right. I mean we do already take care of the kids college, if that helps. So when they were both born, I put $70,000 into a 529, maxed out basically just you know, to take that huge tax deduction.

[Dave Ramsey]

So and so how much will they have when it's time? You've played it out, I know you have.

[Rachel Cruz]

He's run his numbers, Tony.

[Jade Warshaw]

I'm banking on them each having at least 200. Okay, yeah, go to the school they want and I won't take out any.

[Dave Ramsey]

So what do you want from us?

[Jade Warshaw]

Some sort of validation that I'm not crazy for thinking about putting half of my income towards a mortgage.

[Rachel Cruz]

It's just a, it's just a high percentage, Tony. I mean regardless of what you make or what you're doing, it's just a high percentage going to one factor. And Grant, it's going to a great factor because it's you know, your home and you know, you're, you know, but, but even paying it off faster is going to be less because of how big the mortgage is gonna be. Right. So it's a little bit of that idea of people like well I, well the bank said I can qualify for X. Well of course they did, you know, but, but in reality, like what is the wisest with the pool of your paycheck when it hits your account, to be able to live a full, well rounded life, to be giving, investing, saving, traveling, paying the house off early, kids, college, which I know you have that taken care of but like there's so many things in life to Do. And for half of your income to be going just to one asset just feels like. It feels constraints. Right.

[Dave Ramsey]

Nothing can change.

[Rachel Cruz]

And, Tony, you can do it if you want to. You can.

[Dave Ramsey]

Yeah. You're growing.

[Rachel Cruz]

But. But like, to Jade's point, other two, like a smaller percentage of your income going to housing. Again, it frees it up to be able to. To do other things. And if life happens, or when I should say life happens, I think we're probably a little jaded because majority of the calls on this show is, oh, well, I had a family deal that went south, or I. I have a. That's sick and someone needs to stay home. The. The. The job that was supposed to always be there.

[Dave Ramsey]

Yeah.

[Rachel Cruz]

Suddenly a pandemic hits, and now that entire industry's wiped away, and now we have to. We have to figure out, you just put you at a level of risk that is unnecessary. But, Tony, if you are willing to take that and you want to, I have a feeling you're going to.

[Dave Ramsey]

It's his.

[Rachel Cruz]

It's his life. You know, you get to decide that. Right. But what we've seen is what is the wisest way to handle your money? And that is the. That is the percentage that feels wisest. So what I would probably say to you is, listen, if you guys are this disciplined and. And if you're not in a rush to move, just wait two years, pile up all that money, put in massive down payments.

[Dave Ramsey]

Yes.

[Rachel Cruz]

And then you. You're able to pay it off faster, pay off your home quick, very quickly.

[Dave Ramsey]

And.

[Rachel Cruz]

And again, it's not eating deeply into. Into your income.

[Dave Ramsey]

Yeah. You got to play both sides of the equation. If you say to yourself, we make so much money that we could afford to have 50%, then. Then that means you also make so much money that you could save up a higher down payment so. So fast. And, Rachel, my mind always goes to, obviously when people call in when the rubber meets the road or, you know, the worst happens, the thing that people are most concerned about is keeping their home.

[Rachel Cruz]

Yes.

[Dave Ramsey]

That is the thing. Like, I go back to 2020 and when everything shut down and. And I know in our life, we were in entertainment at the time, and the first thing I thought about is, oh, my gosh, like, I hope we get to keep our house because there was no work for those who are in entertainment. And we did the 25 rule. Yes. So, yes, I know Covid is an extreme example. It will never happen again.

[Rachel Cruz]

Like, please, God, but I'll knock you on. But what gives you a sign what.

[Dave Ramsey]

You'Re saying is right, like something. There's always something that comes around the corner that we don't expect.

[Rachel Cruz]

Yeah. And you know, it's interesting. And again, new. And if you are in the city, you know, if you're in Manhattan or any. Any of the boroughs close to, you know, in New York City, it is some of the most expensive real estate in the world. So we do get a lot of people that are like in the Bay Area. True. That's. Or. And it's like we can't afford it. But what it's. But so I hear that. I understand. Which means there's going to be more patients. And again, we always say, like, you're not exempt because you live in California. Like, the math is the. The percentages are the percentages, but they're for your good.

[Dave Ramsey]

They're not. So we can win.

[Rachel Cruz]

And that's the thing too is, you know, again we hear how much a house we do usually get. People that call them like, if it's 50 of my income is our mortgage and I am so stressed and I don't know what to do. Right. They're in a different position financially than you guys are. Tony for sure, those calls. But my thing is, if that ever is a situation, I would rather be on the conservative side because at the end of the day, it's just a home. So like, let my money be a tool to create peace and not stress.

[Dave Ramsey]

Love it.

[Jade Warshaw]

Foreign. I hate to admit this, but I don't always eat right.

[Dave Ramsey]

I know I need to eat more fruits and veggies, but sometimes I just.

[Jade Warshaw]

Have to pound some chips because they taste so good.

[Dave Ramsey]

That's why I love my field of greens.

[Jade Warshaw]

It helps me eat healthy when I.

[Dave Ramsey]

Don'T have much time. And each fruit and vegetable in Field of Greens was doctor selected for a specific health benefit. Heart, lungs, kidney, metabolism, even healthy weight. And folks, I ain't getting any younger.

[Jade Warshaw]

It's super easy to mix with water. And here is the great part of it.

[Rachel Cruz]

I thought it might taste like grass, but it tastes great.

[Dave Ramsey]

And only Field of Greens makes this promise. Your doctor will notice your improved health or your money back. So go to fieldofgreens.com Ramsey for 20%.

[Jade Warshaw]

Off your first order.

[Dave Ramsey]

That's fieldofgreens.com Ramsey to save 20% on your first order. Foreign.

[Rachel Cruz]

Of the Day is brought to you by why refi. Why Refi refinances defaulted private student loans that other places won't touch and helps you get your life back. So kick your. Your private student Loan debt to the curb@y refi.com Ramsey. That's the letter y r, e f y.com Ramsey may not be available in all states.

[Dave Ramsey]

Okay, okay. In honor of Financial Literacy Month, today's question comes from Austin at Thomas Downey High School. He says, can you successfully build wealth without attending College? Oh, yes, 100%. You can? Definitely. I think probably where that question comes from is, yeah, as a society, I do feel like we push everybody kind of down similar pathways. It's kind of like, yeah, you go to middle school, you go to high school, and then you go to college, and then you get married, and then you get a car, and then you get a house. It's like, yes, all of the kind of these social targets that we try to hit. The truth is, though, you don't need to attend college in order to be successful. The truth is you do need to be a continual learner. Right. You do need to make sure that you're extending your education in some form of fashion. That could be trade school. That could you be you getting some sort of a, you know, internship or studying underneath someone or learning on the job. You know, plenty of people get a great job and they're just able to work their way up because they've got that on the job training. So whatever it is, it's just making sure that you have the skills to do the work that you say you would like to do. And that is not always a college pathway. Matter of fact, I find a lot of times, Rachel, in creative Arts, it's hard for college programs to keep up because things are always changing.

[Rachel Cruz]

Right.

[Dave Ramsey]

If you want to be a, you know, a photographer, it can be hard for a university to keep up with cutting edge technology or, you know, if you want to be in film and things like that. So there's a lot of different ways that you can do this thing. And college is not always the pathway.

[Rachel Cruz]

No. We do find trade schools have becoming even more popular. Like, there's such a demand, and what they're paying in some of those fields is. Is incredible. And even to your point, like, we've even had callers on here, you know, they went to code school for two years and they're making $175,000 right now. You know, you're like, it's great. So, yeah, I think the life can look so different.

[Dave Ramsey]

Yes.

[Rachel Cruz]

But I will say that, like, that time period between 18 and 21, there still is a big growth time, right, of deciding, like, what do I even want to do? Do I have to Use it. I think that's the hard thing about college is you do feel shoehorned into, like, you got to pick a major, which is difficult because you may not know at that age, but yet it still gives you an environment to semi grow up in and start to know responsibility and all of that without having to fully go straight into the corporate world. Right. So there's pros and cons to both. We are not against college by any means, but we are against being stupid when it comes to going to college from a financial standpoint. So don't go. $200,000 in debt for an undergrad in English that you, you know, you. You can't make any money. Right. So it's just, you have to be smart about the roi. That's the biggest thing.

[Dave Ramsey]

And it depends on what you might want to do.

[Rachel Cruz]

Yeah. Some careers you have to get a degree. Right.

[Dave Ramsey]

I read this stat that says if you're into entrepreneurship and you're like, maybe I want to start my own business. Only 44 of entrepreneurs have a college degree, which is just an interesting little tidbit there.

[Rachel Cruz]

There you go. It's a great question. All right, next we're gonna go to Boston, Massachusetts. They just had the Boston Marathon last week. To Paul. Hi, Paul. Welcome to the show.

[Jade Warshaw]

Hey, thanks for having me.

[Rachel Cruz]

Absolutely. How can we help?

[Jade Warshaw]

Well, I am in baby step two. I'm paying off. I have about $10,000 left, and I'm looking to be engaged.

[Dave Ramsey]

Nice.

[Rachel Cruz]

Congratulations.

[Jade Warshaw]

Thank you. I'm wondering what. What the best way is to go about setting up for a ring and whether or not I should pause my debt snowball or try to do them simultaneously.

[Rachel Cruz]

It's a great question. Okay, so how much money do you make, Paul?

[Jade Warshaw]

I make about $5,000 a month.

[Rachel Cruz]

After death.

[Jade Warshaw]

Usually around 5,000. Yep. After death. Take home.

[Rachel Cruz]

Okay, perfect. And how much debt do you have?

[Jade Warshaw]

It's 10,250 and some change.

[Rachel Cruz]

Oh, that's great. That's good. I'm glad you didn't say 100,000. That may change my answer a little bit. And how much are you looking at spending on an engagement ring?

[Jade Warshaw]

Well, part of the good news is I have a family heirloom, so it wouldn't be much, because I just. I just want to. I just want to change the band and maybe add something, but it's. It shouldn't be much. I'm. I'm thinking about trying to set aside 5,000.

[Rachel Cruz]

Yep.

[Jade Warshaw]

But just. Just to have extra in case, because I really don't know how much it Costs.

[Rachel Cruz]

Yeah. So you, you haven't priced anything out and looked specifically?

[Jade Warshaw]

Yeah, I haven't gone in in person to, to see what it costs for, to actually change that and, and get an hourly rate or, or an estimate at least.

[Rachel Cruz]

Okay. And when do you think the engagement, when do you want it to happen? Are you like, if I had the ring, it happened tonight. Or are you like, eh, we're gonna, I don't know, maybe in the next two to three months or. What are you thinking?

[Jade Warshaw]

Well, originally I had thought at the end of this year because then by then I'll have paid off all of my debt. But being that it's, it's not necessarily a lot of debt and you know, I'd love to be engaged sooner if possible.

[Rachel Cruz]

Yeah.

[Jade Warshaw]

But you know, I kind of just, I want to do it the right way. I want to do it smart so that I'm not, I'm not, I feel, I almost feel guilty bringing debt into the relationship, if that makes sense.

[Rachel Cruz]

Yeah, no, I hear that totally. Well, we always tell people not to pause big life events. So getting married, getting engaged, having a baby, like all those things do those regardless of the debt. Right. The debt can always get paid off, but when those moments come in life, like, seize the moment. Right. So get engaged. But, but from like a financial standpoint.

[Dave Ramsey]

Yeah, I think. Well, a, there's still a big unknown. Right. You need to find out how much it's going to cost to do the things that you want to do and then that'll give you kind of a starting place. But yeah, the average person spends about $5,500 on an engagement ring. That's kind of a national average, which really is keeping in line with what we would say here, which is to spend about a month's salary on it, no more than two months, which is about what you make. So you're kind of right in that normal threshold there. So the next step is. Yeah. Go to the jeweler and find out what it would take to do the new band and everything like that. And my guess is you're probably going to be right there, or maybe under, since you've already got the stone.

[Jade Warshaw]

Yeah.

[Dave Ramsey]

Unless you wanted to add a little something something.

[Rachel Cruz]

Yeah, I would be okay with you. I, I, I don't want it paused for too long of a period of time. So if there's like a side hustle you can pick up or something. But you could be saving for that on the side, while I would say simultaneously throwing something at the debt just to keep the momentum going. But yeah, but that's probably what I would do. Just split it in half. Let half your margin go to debt, half go to saving. And if you feel like, golly, I need to speed this up, see if there's extra income you can make to do that.

[Dave Ramsey]

And don't feel guilty at the end of this if you still have a little bit of debt that's going to come into. Listen, it's not going to be 10,000. And that's pretty, pretty good based on the things I hear around here. So. Yes, I wouldn't beat yourself too much.

[Rachel Cruz]

Yeah, definitely. I mean, this is, it is so. It is so normal. It is. So is your fiance. Will she have any debt going into the, to the marriage?

[Jade Warshaw]

No, she actually, she paid off all her student loans. Well, I shouldn't say no. She does have two credit cards, which usually she has around $1,000 altogether on those. I mean, she, I would like to. She. We've talked about our finances a little bit and she, she's really interested in trying to combine our finances and, and work towards, you know, being debt free. But we're trying not to. We're not combining finances before we're married. We want it because we have had family members who, who unfortunately have been divorced and we just want to make sure we do it correctly.

[Rachel Cruz]

Yeah, that's exactly what we would say too. Don't combine until after you're married, but have, you know, a full picture of both of you guys from a financial standpoint with numbers going into the marriage, which sounds like you guys, you know, are talking about that. And then just the value system too. Like, that's the other thing we bump up against a lot is couples struggle getting on the same page after marriage when it comes to money, especially if one of them has changed course and they're like, oh my gosh, now I want to be debt free. And it's been, we've been married for 10 years and that's never been a goal. And now it is. You're kind of shifting a big perspective. So the fact that you guys can start on the same track, you know, from a, from a mental standpoint. Right. A value standpoint is a huge advantage, Paul, for sure.

[Dave Ramsey]

Yeah, that, that, that money piece is big. Getting married money piece is big. How you want to raise your kids is big. What you guys believe, like, as far as, like, religious views, how we want to, you know, all of that stuff. If you can start digging in on that, better now than later for sure.

[Jade Warshaw]

Yeah.

[Rachel Cruz]

So great, Paul. Well, congratulations. So exciting. It's one of the most exciting things.

[Dave Ramsey]

I think it is a great time of life.

[Rachel Cruz]

The engagement and the wedding, the marriage, the kids, everything that follows. It's a beautiful life, Paul. So I'm excited that you. That you have someone. So, yeah, I wouldn't stress too much about it. I'd say, yeah, do what you can. Buy that band cheaply, if you can. It'd be nice because you got a great stone, apparently. It's awesome. Thanks, Paul, for the call. All right, Dave, you have some strong opinions, possibly? Yeah, I think so. Okay. Because you really prefer credit unions over big banks?

[Jade Warshaw]

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

[Dave Ramsey]

So you get better interest rate on.

[Jade Warshaw]

Savings, cheaper checking and so on, that kind of thing. And. But that's what's more important than that, though, is the fact that the customer is the owner, changes the spirit on the credit union. So I find very few credit unions that aren't very customer centric.

[Dave Ramsey]

Well.

[Rachel Cruz]

And I think we have found one that is incredible, and that's Fairwinds. They are an incredible credit union that is really out with the heart to help the customer.

[Jade Warshaw]

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

[Rachel Cruz]

Yeah, absolutely. And I love that the things that we teach, they so line up with. And you're right, their customer service is unbelievable. Winston and I just signed up and we got an account.

[Jade Warshaw]

Yeah.

[Rachel Cruz]

And I'm not kidding, it took less than five minutes. It was so user friendly. Like, the step by step approach was unbelievable. And then the next day, my phone rings and it says fair wins on my phone. So I answered it and talked to someone there and they said, yeah, they give calls to every new customer. And so again, they just really care about your experience. And I, I so, so appreciate that. Plus, anything that you can do at a traditional branch, you can do with them@fairwinds, dot or on their app. And you'll have free access to over 33,000 ATMs.

[Jade Warshaw]

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

[Rachel Cruz]

Yeah. You guys, it's so easy to join Fairwinds no matter where you live. So go to fairwinds.org Ramsey Fairwinds is.

[Jade Warshaw]

Federally insured by NCUA.

[Rachel Cruz]

Buying or selling your home, it's a really big deal, and you want an expert in your corner fighting for you to get the best deal and the best price. Honestly, it's probably your largest asset that you're ever gonna buy or sell. So you want this to be a really smooth process. And the Ramsey trusted program is the only way to find a top agent that you can trust who will make sure that your home is a blessing and not a burden. And it's easy because you can compare agent profiles, interview them, and choose the right one that you want to work for you. So find a local trusted real estate pro for [e-mail] agent or click the link in the description. If you are listening to this on podcast or watching on YouTube. We mentioned in an earlier segment, Jade, that you know about college and school and all of it, and it is Teacher Financial Literacy Month or Teacher Appreciation Month and Financial Literacy Month. And we. We just appreciate teachers around here. I know Jade and I, we both have kids in school. And when you have teachers who are part of your own story from being in school and now if you have kids that are in school, they're just such a gift. Like, these teachers are just absolutely incredible. We love them, so we do want to honor them. So make sure to enter our teacher appreciation [e-mail] teacher yes. And we want to celebrate you, so make sure to check that out. Teachers. All right, let's go to Sarah in Philadelphia. Hi, Sarah. Welcome to the show. Hi.

[Jade Warshaw]

Thanks for having me.

[Rachel Cruz]

Absolutely. How can we help?

[Jade Warshaw]

Okay, so just really quick. So when I turned 18, I got married to a man who's about 14 years older than me. We ended up getting a divorce. It was, like, a really controlling situation. But in the midst. I did get pregnant right as soon as I got married. So I have a baby now. She's gonna be five months in May. And so he doesn't help financially. I did stay home after I had the baby, so I was leaning on him financially. Financially. And even when we were together, I didn't go to school. So the good part is I don't have any debt or anything. But the bad part is, like, I don't have, like, a career path because I went invited into being, like, wife and mother and everything, and now I just, like, need help with, like.

[Rachel Cruz]

Yeah, do you? Where is your. Your parents, your family situation through all of this from when you got married to now?

[Jade Warshaw]

So we got married and like my parents were not super happy with the idea of me getting married. Not because they didn't want me getting married.

[Rachel Cruz]

Young Circumstances. Yeah. And they probably picked up some things around town that they probably didn't like being a 34 year old, you know.

[Jade Warshaw]

Exactly. And then so we ended up. We ended up getting a divorce. So I'm staying at my parents now because we kids.

[Rachel Cruz]

Okay. Wow.

[Jade Warshaw]

Wow. Yeah.

[Dave Ramsey]

I'm sorry.

[Jade Warshaw]

Yeah. And he. It's okay. Actually, his family has been. Not his family. His brother and his brother's wife have been great throughout this. They let me stay in their house for two weeks without like charging me anything. They were super helpful when everything happened. They were like, listen, whatever you need, we're here for you. Like his brother will. His brother's wife will call me every day. His brother was always like, hey, if you need any help with the baby.

[Dave Ramsey]

Like we're here like you and you need that community right now. Like if you have that to depend on, I would. Because the truth is, if you are going to get out of this, it's going to require you working some hours, like working a full time job probably to support your family. And childcare is going to be a huge piece of this. So the question then becomes is what can you do for money? Right.

[Jade Warshaw]

Yeah. So thankfully I'm staying home with my mom. Like my parents are thankfully well off. So like it's a place that I can stay and I don't have to worry about like, well, what about the bills? About, you know, my parents are like okay with all that stuff. It's just like I just don't know where to go from here.

[Dave Ramsey]

What?

[Jade Warshaw]

It's not like I'm in any danger right now. I just don't know.

[Rachel Cruz]

Yeah. The next steps for you, right? In life. Yeah. Turning. Because you'll be. Yep. Turning 20 and all of it. Okay. So I just. Because of what you've gone through, Sarah, from a divorce standpoint, having a child. And I never want to minimize someone because of their age. But I am going to say because you're 19, I mean like you're a kid. Right. You're still a teenager. Technically. 19. Right. So.

[Jade Warshaw]

Yeah.

[Rachel Cruz]

So. So the, all of those factors, I do want to give you so much grace. Like you're still a teenager, you're still figuring out how the world works, let alone the responsibility and the events that you've walked through through a divorce already. Right. So like just. We have a lot of time here. Sarah, there is no. I, I do not Feel like this is a rushed situation. There's a lot. A lot of grace here.

[Jade Warshaw]

I feel like I'm, like, sliding down. You're not like a hill, you know?

[Rachel Cruz]

Oh, yes. Yeah. If you feel probably out of control, so I understand that.

[Dave Ramsey]

Yes.

[Rachel Cruz]

But you're not sliding down in an un. Responsible way, financially or something. Right. You're. You're fine. Okay. So I just want you to.

[Dave Ramsey]

No, yeah.

[Jade Warshaw]

Like, I have.

[Dave Ramsey]

I have no debt.

[Jade Warshaw]

If I have a lot on credit cards, it's like $40. Like, I have no debt. I have money saved up. I just don't know what to do.

[Rachel Cruz]

Yep. Is the divorce final? Is all of that done? Any legal bills or anything outstanding there? So that's finished. And does he have any responsibility, like, from. From the divorce? Any child support coming in? Any still. I'm sorry.

[Dave Ramsey]

Oh, okay. She has to file check for child support.

[Jade Warshaw]

So this is only. Yeah. This has only been a month. I have to file still and file.

[Rachel Cruz]

For divorce or child support.

[Jade Warshaw]

Yeah, file for just divorce.

[Rachel Cruz]

Okay. So it's not even. Okay. Yeah.

[Dave Ramsey]

Okay.

[Rachel Cruz]

All right.

[Jade Warshaw]

Yeah.

[Dave Ramsey]

So, yeah, that's why I'm like.

[Jade Warshaw]

I feel like everything is expensive.

[Rachel Cruz]

Do you have a good lawyer? Do you. Do you have someone.

[Jade Warshaw]

I don't.

[Rachel Cruz]

Legal representation. Okay. So that would be step one. That's gonna be. Step one is to find someone in your area who's. Who's. Who's a great divorce lawyer. I mean, you're gonna want somebody. They're supporting you and representing you. So I would. Honestly, Sarah, I would make that. Step one is to find that person. Because when you file, all this is about to. It's about to snowball into a lot of things. And. And you're gonna probably. You or your parents will be paying.

[Dave Ramsey]

Yeah.

[Rachel Cruz]

For some of this too. So. So that would be my first goal. Find somebody and then figure out. Okay. From a money standpoint, how is this working? How. Yeah. How much are we gonna have to have? Because that's gonna allow you to know where.

[Jade Warshaw]

He hasn't helped with the baby since she was born.

[Dave Ramsey]

And he might. He might. Even while we were married. It'll probably take a court order for him, too. And even still, he might not. And so for you, I think.

[Jade Warshaw]

Yeah, I'm just trying to figure out, like, what I do without. Like, I'm trying not to depend on him at all, because I know.

[Dave Ramsey]

Well, don't depend on him. Don't depend on him right now. What. What Rachel says. Right. First step, you get the divorce lawyer. Second step, you sit down with mom. And dad and say, okay, we, we're getting the divorce lawyer. How do we pay for this? And find out what help you have and what help you don't have. And in that same conversation that's also a good time to figure out, okay, mom and dad, like this thing is happening, I don't live with him anymore. And kind of figure out what, create a plan and a vision for the future. Right. It's how long can I stay here? What's that gotta look like? And guys, everybody set really clear expectations of what that means. Do I do. Can I stay here for a year? Can I stay here for it and really talk this through? Because then when you know what the plan is, you'll feel better and then you'll know what you can actually focus on. If you know that you have 12 months and then at 12, the 12 month point, your parents expect you to either start paying some sort of rent or I don't know what you'll decide, but then that will inform, okay, what do I need do, what do I need to do next?

[Rachel Cruz]

Yeah, and, and I would say too, you know, because we always do talk about that expectation, like what Jade's saying. And in this case, Sarah, you know, maybe that expectation is dependent upon your next step.

[Dave Ramsey]

Yeah.

[Rachel Cruz]

And how long the divorce takes. It may even be of if you need to go back to school. And while you're in school, you can stay with them. Right. So it's kind of mapping out. And again, this is not in a rush, Sarah, for you. I really don't feel like you have to do all of this tonight by any means. But this is kind of your next big steps is finding the lawyer, filing, starting that process. And then in the meantime, because it's good for you, Sarah, to be thinking through what does my future look like to Jade's point. So what, what is the next steps? What does it look like? And just paint a broad stroke of like, okay, if I'm 23, what does it look like for me to self sustain.

[Dave Ramsey]

That's right.

[Rachel Cruz]

To pay rent, all that. Do I need a college degree to do that? Do I love, you know, accounting? And I probably need to go get, you know, you know, a degree in that.

[Jade Warshaw]

I actually worked as like a secretary for several construction businesses. I like doing that.

[Rachel Cruz]

Okay. So yeah, administration is probably really high up in your skill set. Yes. So finding those kind of things and then backing out from there and say, okay, you know, would I be able just to plug in with one or two businesses around to be able just to start working you know, maybe in the next six months, and that's great. Or do I need to go back to school? Right. And then with your parents being that safety net for you right now, how much are they willing to be a safety net financially for you right now? And from a time housing perspective, like what Jade is saying. But Sarah, stay on the line. I'm gonna get you Ken Coleman's book Find the Work youk're Wired to do, because that'll help in that. In that mindset. And I think it could just be refreshing to you to have a level of grasp and control over your future. But I'm so sorry about all of this. And we just pray that it's a smooth process for you from here on out. Thanks for the call.

[Dave Ramsey]

Rachel, do you ever get these sketchy text messages that are like, hey, you.

[Jade Warshaw]

Need to update your address and verify so we can get you the package you didn't order?

[Rachel Cruz]

Yes, I have, George. Sketchy. And never trust them.

[Dave Ramsey]

And that's why we recommend Delete me.

[Jade Warshaw]

They help with that?

[Rachel Cruz]

Yeah, they do. Delete Me actually goes in and removes your information from data broker websites. And it is an incredible service that everyone needs.

[Dave Ramsey]

And there's a lot of shady companies out there that solely exist to sell your personal data to bad guys.

[Jade Warshaw]

And that means your info, like your.

[Dave Ramsey]

Email address, your home address, your kids names, your name, everything is just out.

[Jade Warshaw]

There for scammers and spammers to find.

[Rachel Cruz]

Mind so much.

[Jade Warshaw]

But Delete me will delete your data. Hence the name.

[Dave Ramsey]

It's gone. They'll wipe it out for you so you can sleep easy.

[Rachel Cruz]

That's right. And then once they remove your information, then they're going to send you a detailed report telling you where they found your information, when they removed it, how many hours they've saved you. I mean, it is incredible. So detailed and it's beautiful.

[Jade Warshaw]

Get this. So far they've reviewed 27,000 listings on.

[Dave Ramsey]

My behalf, removed me from 240 data broker sites, and save me 77 hours of time. It's incredible.

[Rachel Cruz]

Absolutely amazing. And Winston and I now get fewer texts, weird emails, spam calls, all of it. I love it.

[Dave Ramsey]

So you got to be sure to check them out.

[Jade Warshaw]

Ramsey fans get 20 off their annual plans. Just go to JoinDeleteMe.com Ramsey that comes up to less than 9 bucks a month. Super affordable.

[Rachel Cruz]

Again, that's joins the late me.com Ramsey. Make sure to check it out, you guys. Live from the headquarters of Ramsey Solutions, it's the Ramsey show, where we help people build wealth do work that they love and create amazing relationships. I am Rachel Cruze hosting this hour with my good friend and best seller author Jade Warshaw. And we are answering your questions about life and money. So give us a call at Triple 882-55-5225, and if you can't get through, we've been hearing some of that rumbling. So the lines are full all the time. So we have an entire messaging system that you can leave the message, the producers can call you back to and hopefully even schedule you maybe for a future show. So we'll see.

[Dave Ramsey]

Definitely.

[Rachel Cruz]

But again, the number is 888-255-2225. All right, let's have Kate kick us off this hour in Washington, D.C. hi, Kate. Welcome to the show.

[Jade Warshaw]

Hi, guys.

[Rachel Cruz]

Hello. Hello. How are you doing?

[Jade Warshaw]

All right. Just had a quick question about my 401k. I'm 38 years old. I was diagnosed with stage 4 breast cancer in 2020 and have been doing really well on maintenance therapy since then. So feeling much better now.

[Rachel Cruz]

Okay. I'm so sorry.

[Jade Warshaw]

Yeah, it's been a journey.

[Rachel Cruz]

Yeah. Are you, are you single? Do you have a family?

[Jade Warshaw]

I am married, but I don't have any children.

[Rachel Cruz]

Okay. Oh, my gosh. And so how are you doing? Okay. Right now, you said?

[Jade Warshaw]

Yeah, things are going well. I've been on a maintenance line for about four years that seems to be doing a really good job.

[Dave Ramsey]

Really good. Yeah.

[Rachel Cruz]

That's great.

[Dave Ramsey]

It's tough.

[Rachel Cruz]

So how can we help?

[Jade Warshaw]

Well, obviously with a stage four diagnosis, there's a lot of questions that come up about longevity and finances and all of that. And I'm just curious how to handle 401k contributions in the light of the fact that we're dealing with something that may make my life shorter and most other people.

[Dave Ramsey]

So what, what are you doing currently? Let's start with that. Kind of give us a snapshot of where you are financially. Do you have any debt? If so, how much and what are you contributing so far to a 401k, if at all?

[Jade Warshaw]

Yeah. So personally, I make about $80,000 a year. My husband and I have a mortgage and we have some car debt, but we'll be paying that off at the end of the year. Other than that, we don't have any credit card debt. We don't have any major outstanding issues with any of that. And I tend I'm contributing to the 401k now, but it's not the full 15% that that Dave recommends in his baby steps plan.

[Dave Ramsey]

Okay. And earlier you said you make 80,000. What's your husband make?

[Jade Warshaw]

About 100,000.

[Dave Ramsey]

Okay, so 180 total. Okay. And the car is the only thing between the two of you and you're contributing to a 401k. Is he contributing to one as well?

[Jade Warshaw]

Yes, he's significantly more than that. Like the. What's recommended.

[Dave Ramsey]

Okay.

[Jade Warshaw]

For his point.

[Dave Ramsey]

And so do you guys, as a couple, do you kind of your view your finances together, or do you kind of do it separately and you're just telling us separately for this call?

[Jade Warshaw]

Oh, no, we definitely do all of our finances together.

[Dave Ramsey]

Okay, cool. Okay, so technically, if we're talking about how can we kind of set you up in the best possible way? The first thing. Yeah, we would clear out that debt. So how much do you owe on the car between.

[Jade Warshaw]

It's two cars. Between the two of them, it's, I think maybe $19,000.

[Dave Ramsey]

Okay, so logically, I mean, you could clear those out pretty quickly. Yes. Within the year.

[Jade Warshaw]

They're already on track to be paid before the end of the year.

[Dave Ramsey]

Perfect. And then after that. Yeah. Do you guys have any money saved anywhere else?

[Jade Warshaw]

Yes. Following Dave's steps, we have our three to six month savings plan in place.

[Dave Ramsey]

Oh, so you already have that. You already have that. Okay, so essentially you could pull from there, pay off these cars, and then stack it back up. That's probably what I would do today.

[Jade Warshaw]

Second. What do you mean, stack it back up?

[Dave Ramsey]

So you said you have three to six months already set aside.

[Jade Warshaw]

Yes.

[Dave Ramsey]

So is it more than 19,000?

[Jade Warshaw]

Oh, yes.

[Dave Ramsey]

Okay, so I'd probably pull that money out today and pay these cars off, and then I'd stack back up to where you had it.

[Jade Warshaw]

Okay.

[Dave Ramsey]

Does that make sense? That way you're free and clear today. That is stress off of your plate that you never have to think of ever again.

[Jade Warshaw]

Right, right. Becomes what do we do in terms of 401k contributions to my account?

[Dave Ramsey]

So at that point, now we're into baby step four, where we're putting away 15 of your total income. So however you guys want to divvy that up, if he has a better match or something like that, you could do it. You know, do his first. But the goal is of your gross total annual income. You're doing 15.

[Rachel Cruz]

Yeah. What is the doctor. But you're saying from a health standpoint, Kate. Right. That should I be contributing if I'm not going to be able to use this money at 59 and a half? Is that what you're thinking? Have the doctors given you any indication do you. I mean, do you have any. Did they give you any expectancy of, you know, people live like this for the next. For 20 years or if they give. You know what I mean?

[Jade Warshaw]

Yeah. It's tricky, right, because we don't. In the cancer universe, it's very hard to tell. We have people who live a long time and people who don't. And the idea, of course, is that you're always wanting to be one of the people who live a long time.

[Rachel Cruz]

Right.

[Jade Warshaw]

But, you know, I'm just thinking about my husband and taking care of him so that if it turns out that it's not.

[Rachel Cruz]

Yeah, for sure.

[Jade Warshaw]

Setting him up so that he'll be all right.

[Dave Ramsey]

Yeah, really tough.

[Rachel Cruz]

Well, you know what? From talking to you, and again, you're in these appointments, I mean, I feel like I want to be so sensitive to what you're hearing in your appointments, but if I were in your shoes and from what you've told me on this call, I think from a discipline standpoint, I think you guys are going to be in a really good spot. I mean, you guys are already have a great plan in place, right. To be moving forward on the baby step. And so if that 15%, if you kind of just felt in the back of your head like, ah, I don't know, like if I. If I'll see that money, and I think we could maybe use that in a mutual fund or something. You know what I mean? If there's another way to invest that, and it's not specifically in a 401k or a retirement account that locks it up till you're 59 and a half without penalty, and there's another investment vehicle that you would rather use, thinking maybe, you know, if something were to happen and, you know, something turns, you know, turned south and we were like, we're gonna use some money to go do something with. Right. That you don't feel like it's locked up where you're like, oh, gosh. Because if it is in the 401k.

[Dave Ramsey]

Yeah, it's locked away till 59 and a half for him.

[Rachel Cruz]

And you could take. And he could take it out, or you could take it out with some penalty. So it's not the end of the world by any means, but to get the most use out of it, if you were to ever use it before 59 and a half, it would be a different investment vehicle. Does that make sense, Kate? I feel like I just talked in.

[Jade Warshaw]

A circle, but no, it does, and that's incredibly helpful. Just thinking about if it's, you know, if we're not putting it in one place, then maybe there's an option to put it somewhere.

[Rachel Cruz]

Yeah. And I don't think there's a wrong. Yeah, I don't think there's a wrong answer. J. I'd be great. Because I see, like, if you did the 401k and you said, you know what? I'm gonna just have high hopes for my life and I pray that I live till I'm 75. 80, 85. Right. With this for the rest of my life and I'm gonna beat it or I'm gonna go into remiss. You're right. And you just were like, I'm gonna go 401k. Nothing bad's gonna happen with that. Right. Like that. Money with that. And then if something did happen, Kate, then either you could pull it out with penalty. And at that point in life. You know what I mean? It doesn't. I mean, it doesn't matter. Or you. Or you pass it on to your husband and he could use it later.

[Dave Ramsey]

Yeah, my brain is just thinking about if some treatment popped up that your insurance didn't cover and you wanted to go for it to have some cash there that you could go to. Yeah, some sort of infusion. Do you see what I'm saying? That's where my brain goes. So decide how much that is. And yeah, I'd put that aside and.

[Rachel Cruz]

Have that liquid instead of in a 401k in another investment. Not liquid, sorry, but just another investment vehicle like a index fund Vanguard or a mutual fund or something versus a tied up in a 401k. Thanks, Kate, for the call. As moms, we have enough stuff that we're juggling without pacing through a huge grocery store for hours and paying premiums for name brands. That's why you need to try Aldi. Aldi makes shopping for groceries more affordable, saving your family nearly $4,000 a year and way easier. They take the guesswork out of shopping with better choices like their exclusive Aldi brands, so you can save money and time and focus on what really matters. So stop paying more and start shopping smarter at Aldi, where you'll save with the lowest prices of any national grocery store. Find a store near you today at Aldi us. That's a l D. I dot us.

[Jade Warshaw]

Big news, business owners. It's here. My brand new book, Build a Business yous Love is a officially available to start reading now. Look, running a business is tough. Some days it feels like you're just duct taping the Whole thing together. I get it. That's why I put 30 years of hard earned lessons into this book. To help you grow faster, make smarter decisions and stop learning everything the hard way. Don't wing it. Get your [e-mail] store and start reading today.

[Rachel Cruz]

Up next, we have Marty and Spokane, Washington. Hi, Marty. Welcome to the show.

[Jade Warshaw]

Thanks for taking my call.

[Rachel Cruz]

Absolutely. How can we help?

[Jade Warshaw]

I just recently found out that when I go to file my taxes, I am going to owe roughly $140,000 in taxes due to early withdrawal I took out of a 401k last year and to put down on a house. So my question, I'm trying to figure out where the best place to pull money from either a home equity loan. Really don't want to do a payment plan with irs, but I just don't know the best path forward.

[Dave Ramsey]

Did you know that this would be. That you would have to pay taxes on that money when you pulled it out? Did you know that this was coming?

[Jade Warshaw]

So I. There's no blame. I did talk to several individuals when I pulled the money from the 401k about how I wanted to pay all the fees and taxes up front. I didn't do my part on the research and I was misinformed that it had been paid. It was all caught up and I didn't realize, oh, she's gonna be near that much. And I didn't realize it hadn't been done until I went to file my text.

[Rachel Cruz]

Oh, gosh, I'm sorry. You know, Marty, honestly, I'd probably go pull a personal loan for it. I think I would rather owe a bank than the IRS at this point, especially for the amount it is. It's gonna take you a while to write pay it off because how much do you make a year?

[Jade Warshaw]

Roughly 130,000.

[Dave Ramsey]

Oh, man. How much did you pull out?

[Jade Warshaw]

I pulled out 400,000 because I wanted roughly 300,000 for a down payment because I want to pay the house off. I've been going through the steps. I don't have any other debt.

[Dave Ramsey]

Did you pay the house off? Is the house free and clear?

[Jade Warshaw]

No. Oh, no. I still owe 250. 256 on the house.

[Dave Ramsey]

Gracious.

[Rachel Cruz]

And do you have any money in any other investments that are not retirement, non retirement investments?

[Jade Warshaw]

I have a. No. I have a Roth and a traditional IRA and then I have about $60,000 in savings, which is my savings fund.

[Rachel Cruz]

Okay.

[Jade Warshaw]

And I don't know if I should tap into that. Yes, I don't Want to.

[Rachel Cruz]

Yeah, no, I want. But I would. I would for sure.

[Dave Ramsey]

Yeah. I. Yeah, Rachel's point. I would clear that down to a thousand bucks today and clear that.

[Rachel Cruz]

And you'd have about an $80,000 loan at that point. And I. Because I was gonna say, even with your income, I don't know if you'd qualify for a personal loan in a bank, I mean, depending on the situation.

[Dave Ramsey]

So, yeah, I'd try it, though. Once you've knocked it down, I would.

[Rachel Cruz]

Yeah, I would rather have an $80,000 loan than a $140,000. So, yes, Marty, that savings is what we would say would go. Because I would put this in baby step two in the debt snowball, and you have no other debt. And so. But I would. I would. I would earmark this like that. I mean, that. That. That's especially IRS stuff. You want them out asap. So, yeah, I would pay down as much as I could right now.

[Dave Ramsey]

Yeah.

[Rachel Cruz]

And then take the rest out just from like a credit union or a bank and do a personal loan versus having a payment plan with the irs.

[Dave Ramsey]

And it's going to be easier for you to manage because the irs, like, they're hard to contact. They don't contact you via email. They. It's only mail. Like, the way they do it.

[Rachel Cruz]

And they can do stuff with, like, garnishing wages. It just makes me nervous. I don't like it. And from a interest, I would not do it. I would not do an he lock. I would not put your home on that. I would not put the home at risk there. And with HELOCs, the interest rates are sometimes insane. So I think. I mean, my best bet would be it would probably be a personal loan. I think that would be a.

[Dave Ramsey]

Yes.

[Rachel Cruz]

The best route.

[Dave Ramsey]

Yeah. I said no more debt, but I meant no more leveraging very important things for debt. Like.

[Rachel Cruz]

That's right.

[Dave Ramsey]

No more borrowing from your 401k and no more like leveraging your house for sure. Oh, I'm sorry.

[Rachel Cruz]

Does that help?

[Jade Warshaw]

It does. And that was where I wasn't sure if taking the equity of the home was better or just trying to get a personal loan.

[Rachel Cruz]

Yeah, for sure. Yeah. Yeah. I would go the personal loan route. And again, we're not big on the. Well, we. We rarely talk about, like, borrowing money, but this would be a case. You're already in the hole. So rather be in the hole with a bank than the IRS at that point. And, you know, and your credit card interest rates and stuff can be Up where to? 18, 20. You don't want it on a credit card, you know, like don't put it on the credit card, you know. So again, personal is probably going to be your best bet.

[Dave Ramsey]

So that's true. Oh, this is.

[Rachel Cruz]

That's terrible.

[Dave Ramsey]

I'm sorry. Bad information.

[Rachel Cruz]

Yep. That's not, not fun at all. I'm sorry about that. All right, let's go to Justin in Chicago. Hey, Justin, welcome to the show. Hello.

[Jade Warshaw]

Thank you for having me on.

[Rachel Cruz]

Absolutely. How can we help?

[Jade Warshaw]

So my question is, I'm wondering when to call it quits on a struggling business. I've been helping my uncle with the family business doing masonry restoration, a construction company, for about four and a half years now. And when we're working, we do great. We're efficient, we're ahead of schedule, we're under scope on material, we do great and the clients are very happy. But that's when we have the lease and often all of our profits go to chasing down more leads that then just kind of coast us to the next one. And the next one feels like I'm a hamster on the wheel.

[Rachel Cruz]

Never getting that traction. Are you guys behind on anything or is it pretty much like you're just kind of making it and there's not much profit?

[Jade Warshaw]

We're 100 dent free. We're just, yeah. Catching up month to month.

[Rachel Cruz]

Okay.

[Dave Ramsey]

Is it because it costs you so much to acquire leads? Is that the problem or it's just that you're not making enough after a job to do more?

[Jade Warshaw]

We are just struggling with lead acquisition. I guess we neither of us are really big experts in marketing specifically. So we've tried all sorts of avenues and over the past five years, nothing really seems to produce continuous leads.

[Dave Ramsey]

Are you working with, are you partnering with the other businesses in your area? Like, are you partnering, partnering with realtors and partnering with interior designers and partnering with people who are working with people who will need your work? Does that make sense?

[Jade Warshaw]

We've tried reaching out, but we, the type of work that we do, specifically restoration work is very like residential focused. So homeowners and like current existing homeowners that need to fix their house or superintendents and occasionally general contractors that do restoration work. And we've done a lot of business in business. Cold calling, cold emailing, you know, even going up to businesses and trying to build those relationships. But it feels like we have a curse on us that nothing is working out.

[Rachel Cruz]

Yeah. Did you guys start this four and a half years ago or you just came on board four and a half years ago?

[Jade Warshaw]

I came on board four and a half years ago.

[Rachel Cruz]

How, how long has the business been doing it for?

[Jade Warshaw]

25. Okay, 25 years. Yeah.

[Rachel Cruz]

And how's, I mean, how's he been. Has he been making a good living? And then it kind of just went downhill the last few years and just like from a lead standpoint or how does he survive?

[Jade Warshaw]

He was on the wheel long before I was. So I, I came on with some experience working with the general contractor before helping him with his estimating payroll and, you know, kind of construction bookkeeping. And I thought I could help him. And while I have been able to increase our gross profits, the lead generation part just still isn't happening.

[Rachel Cruz]

It's still a struggle. Is there any part of you that you want out, just in general, like, are you enjoying this or are you like. No, I want to make this work because it's such a, it's been such a great thing.

[Jade Warshaw]

I've been, I've been doing a lot of entrepreneurial stuff, you know, since high school. And I do enjoy taking part of building a business, but it is a bit exhausting. Me and my wife are on baby step three. We have a four month old and I'm starting to think about our personal financial future and how much longer can I go on? I mean, business.

[Dave Ramsey]

Could you hire a marketer? Do you have, I mean, could you guys hire somebody to help in that.

[Jade Warshaw]

Area over the past six months? Yeah, we tried that about, we started about six months ago and we just had to let him go because it was not working.

[Rachel Cruz]

Yeah, there was no more. You weren't getting the leads you needed kind of thing.

[Jade Warshaw]

We weren't getting the leads that we needed.

[Rachel Cruz]

Henry Cloud wrote a book called Unnecessary or Necessary Endings. Not unnecessary, necessary endings. And it's. And basically one of the points of that book that I think is so good is like, when you just don't have hope that the future is going to look different, that something needs to end. And so he talks about it more from a relational standpoint, but this is kind of more of a business standpoint. So. So if it's been the struggle for four and a half years and you don't see something changing from a marketing standpoint and whatnot, then maybe that's a discussion you and your wife kind of have. But the problem I have with it, Justin, is that when you guys are doing the work, you're doing great, you're not losing money on the actual business end. Right. When you have a job, you're doing it and doing it within scope and smart and everything.

[Dave Ramsey]

Maybe there's just not a huge demand for the type of work that you're doing. Maybe you need to pivot into something that more people want. Within masonry.

[Rachel Cruz]

Yeah, within the same skill set. That's a great. Yeah, so maybe it's more expanding and not narrowing the business idea because the business itself seems like it's doing great. It's just getting those leads that's important. Hey, you guys, Health insurance costs are only moving one way and that way isn't down. And if higher costs aren't enough, the wait times to see your doctor are longer. And it's harder than ever to get anything approved through the bureaucracy. So if you feel like the system is working against you, try a biblically based alternative to health insurance. Christian Healthcare Ministry. CHM is a health cost sharing ministry that's helped hundreds of thousands of families like yours take care of over $11 billion in medical bills since 1981. CHM has also helped them stay true to their values and avoid miles of red tape. And CHM support goes far beyond meeting financial needs. They also help meet spiritual needs. Members become part of a family who will pray with them and for them when they experience a medical event. So listen, y'all, there's a better way to take care of health care costs. CHM programs start as low as $98 a month. So learn more today and [e-mail] budget. That's chministries.org budget all right, let's cut to the chase.

[Jade Warshaw]

It's easy to get discouraged about crazy house prices and interest rates. But when you have the right real estate agent to help you buy and sell the right way, you'll have confidence to make smart decision. Ramsey trusted agents aren't just experts who guide you through buying or selling. They're people you can trust to have your back from the first call to closing day. Find a Ramsey trusted agent near [e-mail] agent. That's ramseysolutions.com.

[Dave Ramsey]

Foreign.

[Rachel Cruz]

Living paycheck to paycheck is never fun and you want to stop that cycle. So if you are living paycheck to paycheck and you think, okay, what can I do that is different? I would really encourage you to get on a budget and also join our team because they are hosting a free budgeting training session this month. There's a couple of them you can actually look into. So you are going to learn the step by step idea of how to make and stick to a budget because it is probably the best tool to get you out of that paycheck to Paycheck Living. So their spots are limited, but check it out and sign up for [e-mail] webinar. And again, it's going to give you a great tutorial through it with our team and also do a live Q and A. So make sure to check that out.

[Dave Ramsey]

Nice.

[Rachel Cruz]

All right, Jade, look at that. We're going to go all the way to Berlin, Germany International. Yeah. Talk to David. Hi, David, welcome to the show.

[Jade Warshaw]

Yeah, nice to meet you guys.

[Rachel Cruz]

Yes.

[Jade Warshaw]

Sorry for my English and thank you for having me.

[Rachel Cruz]

Yes, absolutely. How can we help today?

[Jade Warshaw]

Yeah, at first I want to tell you a bit about my situation. I'm at baby step three and starting for the fourth one, and I'm asking for advice. Living with my mom at 30 years old in one house. I help us to help to pay off the mortgage. It's about 70k. And. Yeah. Should I put my energy in our relationship and the house or should I live on my own and create my own. Yeah. Lifestyle.

[Rachel Cruz]

Yeah. So you are contributing right now to the mortgage, Is that what you said?

[Jade Warshaw]

Yes.

[Rachel Cruz]

Okay. And is that like kind of your rent for living there? Is that kind of what she's charging you, or are you just doing that because you think that it's, you know, a great nod to your mom to help her with the mortgage?

[Jade Warshaw]

No, no, she is helping me because the cost of living outside is more than I paid at home.

[Rachel Cruz]

Okay, gotcha.

[Jade Warshaw]

So we are helping each other. So I wanted to force her to put more payments into mortgage, and that's. That's my goal, but I don't think it's. It's working out. And so I want to ask for advice. What should I do? Should I stay at home and build my wealth or should I.

[Dave Ramsey]

It's only her name on the deed, Right. And on the mortgage, Right?

[Rachel Cruz]

Yeah.

[Dave Ramsey]

Okay.

[Rachel Cruz]

And it would. Would she be able to cover the mortgage on her on her own when you move out?

[Jade Warshaw]

Yeah, but the lifestyle, I would say. I would say so. She's single and I want to. Yeah. I'm paying a lot of the bills.

[Rachel Cruz]

Okay, so she's dependent upon your income To a degree.

[Jade Warshaw]

Yeah.

[Rachel Cruz]

Okay.

[Dave Ramsey]

Oh, interesting.

[Rachel Cruz]

Yep. So that can be. That can be tough. And are you wanting to move out, David? Are you like, okay, I'm ready to be on my own, but I don't feel like I can. And what's stopping you? Is that that dynamic?

[Jade Warshaw]

Yeah, I wanted to save money.

[Rachel Cruz]

Yeah, absolutely.

[Jade Warshaw]

I want to be. Because at the dead end, when Anything is happening. The mortgage will be the same when I'm alone, so I have one sister. But there is some time to. Yeah. Get together and make, make the house that, that free.

[Dave Ramsey]

Yeah. I mean, I think you have to sit down and talk to your mom and say here's, here's, here's what's going on. I understand that you're dependent on me and what I've brought to the table financially for the mortgage and for lifestyle. But I gotta, like, I, I need to move out and live my life. And now you guys can start now. Now you put the reality on the table. Right. It's not just this thing that you guys aren't talking about. You've said it. And then you guys can start a timeline of. Here's what I'm going to start to do. I'm going to start to look for other places. Maybe she can start to look for, I don't know, maybe there's some sort of a situation where somebody could rent a room out of her house. I don't know. But I think that you guys have to start figuring out, figuring out what that is because the truth is, is she, is she healthy?

[Jade Warshaw]

Yeah, for sure. She, she is retiring and she has her own business.

[Dave Ramsey]

Okay.

[Jade Warshaw]

With. Yeah. So beauty and so on.

[Dave Ramsey]

That's great. That lets me know she's an independent woman. She's able to take care of herself. She just hasn't had to yet. You know what I'm saying? Like she has not had to bring in the extra money and she hasn't had to do that because you've been there. But if you step away, my guess is she'll figure out a way to make it work. And that's not necessarily on you to.

[Rachel Cruz]

Yeah, because you kind of mentioned earlier her lifestyle is increase her lifestyle spending because you're taking care of the mortgage. So she's gonna have to probably shift her priorities. How much do you make a year, David?

[Jade Warshaw]

Yeah, around 60, 62k in a dollar. I have to. Okay, write it down. Yeah, from euro to dollar.

[Rachel Cruz]

Sure, sure. And out of that income per year, are you able to rent somewhere for a bit? Like are you able to self support yourself with that amount in Berlin? I don't know, I don't know. The economy over there.

[Jade Warshaw]

Yeah, it's, it's a little bit other situation because the, the health care is about the health care and the taxes are in that 62k. So I get home 30, 39 or 40. The taxes here are a little bit higher. So yeah, for sure.

[Rachel Cruz]

You can Self support yourself. You can, you can support yourself.

[Jade Warshaw]

Yes, but on the dead end I don't have really margin to put in myself and my retirement plan.

[Rachel Cruz]

Okay. Do you have any debt right now? Consumer debt?

[Jade Warshaw]

No.

[Rachel Cruz]

Good enthusiastic show.

[Jade Warshaw]

I'm staying out of debt. And I thought about a car but as, as long as I was thinking about it, I, in my mind, oh no.

[Rachel Cruz]

Okay, good for you.

[Dave Ramsey]

Is there a track that you could start earning more money? Like do you see a career trajectory where you're, you know, in the next five years earning more money or is this kind of, do you feel like this is it for you in Berlin?

[Jade Warshaw]

So I recreated my career in sales. So I went to, I was looking for a hotel degree. I get it. And then Corona hits and I started a sales career. So I'm improving on that. I want to go further. I'm a sales manager for energy resources for healthcare and hospitals. So yeah, I will make more money that. It's about 70, 80,000 here in Germany. So maybe I should go to America and make some more money. The numbers are killing me.

[Dave Ramsey]

Listen, that's always an option. I think the main thing to take away is I would not pay more on your mom's mortgage. And if she wants to pay extra on her own mortgage, you know, that's her prerogative. But the main thing is I would be looking for a way to move out even if it's into a small apartment, a small one bedroom, something where it's really modest for you but at least you're kind of able to separate yourself from that dependency that you guys have on one another. And then yeah, it's up to you to get to decide what you do. I mean the world is your oyster at that point. Yeah, come, come to the States.

[Rachel Cruz]

Yeah. So yeah, David, I would have a conversation with your mom and you know, and she's been, you know, you've contributed a lot but also she's allowed you to live with her.

[Dave Ramsey]

That's right.

[Rachel Cruz]

So give her, you know, some, it would be respectful to give her some. At least a notice of maybe two or three months, I think. Yeah, that's just to say, hey, I'm going to be looking for a new place and by July I think I'm going to be moving out. So I just want you to be aware. So if you need to start shifting some things, you know, and if your deal was that, you go ahead, I.

[Jade Warshaw]

I will, I will be clear at that point. So don't.

[Rachel Cruz]

Don'T worry about that.

[Dave Ramsey]

Don't worry about that. Rachel, he's gonna lay it down.

[Jade Warshaw]

I am very open minded, but thank you.

[Rachel Cruz]

Yes. No, you're great. Yeah. So, yeah, that, that's. Would be my advice, David, is to, yeah. Have that conversation with your mom and then, yeah, get it. Get a small apartment. I wouldn't probably buy anything right now. You know, just like, get yourself settled. You're 30. Kind of figure out, okay, this is where I'm at. Here's like the career and like what Jade said. If you can see a trajectory of your income going up, that's wonderful because you can use some of that to maybe save and pay for a property down the road and. Or start investing and saving for the future for yourself. But I think this first step is, is to move out. So I would do that. But, yeah. Good luck to you, David.

[Dave Ramsey]

Very good.

[Rachel Cruz]

And he is very convicted, Jade. I asked him about that debt and he gave us an enthusiastic no. We could hear it all the way here in America. David, you're doing great. We're excited for you.

[Jade Warshaw]

Listen, guys, I've heard just about every excuse for why folks think they can't get ahead with money. So let's go ahead and settle this right now. Now you get the final say on what happens with your money. That's why you have to start telling your money where to go, so you can stop wondering where it went. So if you're gonna start winning with money, you have to get on a budget. The easiest way to get started and stick to it is with the EveryDollar budget app. It'll help you make a plan for every single dollar coming in and every single dollar going out every single month. And guess what? It's free. So no excuses. Download every dollar in the App Store or Google Play today.

[Rachel Cruz]

This show, I. I'm proud to say, because it's all of you listening and watching continues just to grow and grow and grow. And we are so thankful for that because that means more and more people get to hear about how to take control of their money. This is why we wake up every day. This is what we want. So the fact that more people are listening and watching is so wonderful and so many times that that growth really does happen because those of you listening and watching are telling your friends and family about the show. So. So please continue to do that. Word of mouth is always huge. And people that trust you, trust your judgments and know that, yeah, you're a trustworthy source. So be telling your friends and family, share it on social media, all the things it really does help. Continue to grow the show. Because we want to spread the word about how to have peace with your finances, Jade.

[Dave Ramsey]

That's right. Yes.

[Rachel Cruz]

We want peace in this area of our life. So let's go to Tony in Philadelphia. Hi, Tony, welcome to the show.

[Jade Warshaw]

Hello. Thank you.

[Rachel Cruz]

Absolutely. How can we help?

[Jade Warshaw]

I'm looking for some help in advising my daughter and son in law. Specifically, should they take their sizable savings and use it to pay off their sizable debt or not?

[Dave Ramsey]

Did they ask you what they think they should do?

[Jade Warshaw]

I think we're pretty open in our family with money. This is just a, a little bit of a. They were recently married.

[Dave Ramsey]

Okay.

[Jade Warshaw]

They're in their mid-20s and they're good young adults and thoughtful with their money.

[Dave Ramsey]

Okay.

[Rachel Cruz]

And they came to you and she said, you know, dad, what would you do in this situation?

[Jade Warshaw]

Well, it did come up in conversations with us. It was, you know, what should they do? She came at the time of their wedding. She had about $100,000 in savings with no debt. Her husband had about $10,000 in savings and about $100,000 in student loan debt. No other debt. So as a young married couple, put them together, They've got about $110,000 in savings and about $100,000 in student loan debt. I've been debt free for a while, so I'm a little unfamiliar territory with what they should do. On one hand, they could take their savings and pay off the debt and be debt free. Yeah, I mean, it sounds great.

[Dave Ramsey]

That does.

[Jade Warshaw]

On the other hand, they'd have no, they'd have no savings at that point. And that just makes.

[Dave Ramsey]

Well, they have 10,000. They'd have 10,000 of savings.

[Rachel Cruz]

But it makes you uncomfortable. Or them.

[Jade Warshaw]

Yeah, them, probably more. My daughter, because she's been raised on, have a emergency fund and save for things before you buy it. So, yeah, she's struggling with. Do I take the savings that we have and take it down to nothing.

[Dave Ramsey]

Here, Here, along with the other side of it. Can I interject for a moment? Here's the thing.

[Jade Warshaw]

Yeah.

[Dave Ramsey]

I feel like we're talking about the wrong thing.

[Rachel Cruz]

So.

[Dave Ramsey]

Yeah, you're, you're right. If, if, if we're talking about the money side, 100, I'd say, yeah, they should take the 100,000 and pay off the 100,000 of student loans. They'll have 10,000 of savings and they can stack that up to six months of expenses really fast. Right?

[Rachel Cruz]

That's what we would say. Yeah. Like from the money standpoint, Tony, that's what they should do. Yes. They need to Pay off their debt.

[Dave Ramsey]

But the. What is really striking me in this call is they're newly married and it feels like, and I listen, I don't want to over. So I'm just telling you, I'm trying to call a spade a spade. It feels like you're the third man in the relationship and I kind of feel like that's going to cause problems going forward. So I am of the mind of let them figure it out. And if they truly do ask you, that's different. But I don't think that it would be healthy if you're kind of in her ear over there or in his ear over here. I feel like you have to kind of let them be a new couple that's just me.

[Rachel Cruz]

And figure it out.

[Dave Ramsey]

Yeah. Rachel, you might say something a little differently and that's fine.

[Rachel Cruz]

No, I mean, yeah, I mean, again, Tony, it's. The relationship standpoints always get sticky with money when it comes to parent, adult child situations. And we see it a lot. So I think what we're kind of just cautioning is if this was your daughter calling, that would be one thing. If the son in law was calling and we're talking to them, it's their money and their problem. Right. So they need to be figuring this out. They're adults. They're old enough to get married. They're old enough to figure this out. But again, if they came to you, Tony, and said, you know, dad, we need a lot of help. Will you sit down with us? Here are our numbers, here's what we need to do. That is. Yeah, but the, the, the.

[Jade Warshaw]

Yeah, yeah, I would say that's part of it. I mean, we do, we have been open and have had conversations.

[Rachel Cruz]

Okay. Okay, here's an. Are you ready for this extreme story? You ready for this, Tony? So my, I remember I was married probably, we were probably right at six months. And I was 21 when I got married, so I'm 21 and a half. And Winston and I, I remember being up at mom and dad's house. I was by myself and I was having dinner with them because Winston had something that night. And I remember asking my dad, Dave Ramsey, I love this story, a question about mutual funds. And I said, we have money in a high yield. Should we go ahead and transfer this to a mutual fund or leave it in a high yield? Like, it was a very pretty simple answer. But I didn't know what he would recommend. Tony. He wouldn't answer my question.

[Jade Warshaw]

Ah.

[Rachel Cruz]

He said, what would you? Well, what does Winston think? And I was like, well, we don't know, so we're coming to you to ask. He's like, well, you just drive down this hill and you guys decide what you think you should do. And I'm like, but I'm asking you, Dave Ramsey, what to do with my money. Do I need to call in and, like, scam the show and, like, change my name? But I think that the learning was now 15 years later, looking back, he was giving dignity to my husband to say, you and my daughter need to figure this out. I am not going to swoop in and save the day all the time. You guys are smart. You guys can figure it out. And again, it was not a. And I would say this in this situation. This was not a life or death money situation. Right. They're not asking, gosh, we're going to cash out all of us, all of our stuff, and we're going to go into crypto. And you're like, oh, can I just yell? Probably not a good idea. Right? It wasn't like, it's. You're not. They're not doing something extreme. Should they pay off this debt? Is it a lot of debt? Yeah. They also have a lot of savings. They're going to be okay. But I just wonder from a relational standpoint if it's. If there is something to be said, Tony, of, you know, you gave her away and.

[Jade Warshaw]

Yeah, I was trying to get prepared for the conversation as we talk about it more. But it's an interesting. There is the Dave approach, as he did with Rachel, and say, let me know what you guys do.

[Dave Ramsey]

Yeah, I love that approach.

[Rachel Cruz]

I know. I mean, I was frustrated at the time because I literally was like, will you just say mutual friend? Or I was like, just give me the simple answer. And again, every relationship's different.

[Dave Ramsey]

Right.

[Rachel Cruz]

And Winston may do something different with Amelia if Amelia comes and asks. I mean, I don't know, but I think it's the overstepping boundaries that we don't want. We want them to be developed into their own couple giving themselves the dignity. And there's probably little bit of you, Tony, I'm going to say this too. There may be a little bit of you that's like, oh, I don't like that he brought in all this debt. I was debt free. My daughter was debt free. And now she has to use her hard earned savings to clean up his mess. And that's frustrating as a dad to watch. So there could be a little bit of that brewing in you as well.

[Jade Warshaw]

Yeah, yeah. I think I'm Good. There. It just. It is what it is. I think I've heard Dave say lots of times on the show that. And then the preacher said, you are one. It is what it is. Like, it's. They view it as the two of them, they have savings, and the two of them, they have.

[Rachel Cruz]

I love that. That's wonderful.

[Jade Warshaw]

I'm being disciplined and feeling that way about it also.

[Rachel Cruz]

That's good. Good. I'm glad.

[Dave Ramsey]

It's like my son says, it's a taco burrito conversation. Nachos.

[Rachel Cruz]

Nachos. Yeah. Yes. But if she came to you, Tony, and your sweet daughter is like, dad, please, what would you do in this situation? You would answer if you were following Ramsey's plan. Yes. You would take that $100,000, you pay it off, you'd have $10,000, which is pretty great compared to the normal, you know, normal people out there, normal Americans that have a negative net worth because they don't have savings and they have a hundred thousand dollars. So they're in a great position in that way. They get to continue to build that 10,000 up to a fully funded emergency fund and go. Go about their. Their life. And it's great. So I know we're probably a little hard on you, Tony. I don't mean to be, but I.

[Dave Ramsey]

Think it's the right thing. I think. I love what you said because at the end of the day, it is kind of that dignity to the spouse of saying, hey, like I.

[Rachel Cruz]

Especially the dad, daughter's relationship, would you say, yeah.

[Dave Ramsey]

And for this, the husband coming in, like that's. That role has got to shift like this, and it's. It's tough to do that, but I think you have to pull your hands off in order for that to make the transition it needs to make.

[Rachel Cruz]

Yep. I know, man, it's hard, and I think that's going to be a.

[Dave Ramsey]

Hard.

[Rachel Cruz]

As a parent, that has to.

[Dave Ramsey]

Especially if the dad and daughter are very close.

[Rachel Cruz]

Yes.

[Dave Ramsey]

Yeah.

[Rachel Cruz]

Yes. And I. But I think that sets up a beautiful precedent going forward because I feel like I've, you know, known, you know, situations and that wasn't the case. And there was. There was a overlap a lot. And later breaking that fit, 10 years after therapy, trying to break that relationship, like, that's even more painful. So it's a good precedent to kind of start. But, Tony, I do appreciate your heart and love looking out for them and all of it, but tell them to call the show and we'll chat. We'll chat with them, too. So thanks, Tony, for the call. And that puts the sour of the Ramsey show in the books.

[Dave Ramsey]

Hey, what are you still doing here?

[Jade Warshaw]

You know the rest of the show's.

[Dave Ramsey]

Happening on the Ramsey Network app, right? So you got to jump over there to continue watching. You can download it for free. Just go to your app store, type in Ramsey network, It's completely free, and I'll drop a link in the show notes to make it easy for you.

[Jade Warshaw]

So if you're watching on the app, you're in luck.

[Dave Ramsey]

But if you're watching anywhere else, this.

[Jade Warshaw]

Show is over for you.

[Dave Ramsey]

So jump onto the app and let the fun continue.

[Jade Warshaw]

All right, go on now. Don't make it weird.

[Dave Ramsey]

Okay. I got nowhere to go, so you need to go.

[Jade Warshaw]

Okay, bye. Bye, now.

[Rachel Cruz]

All right, this is getting weird over there, guys.

[Jade Warshaw]

What do we do.