The Ramsey Show: “You’re Either Building Wealth or Losing It”
Date: October 16, 2025
Host: Rachel Cruze (with Jade Warshaw and occasional appearances by Dave Ramsey)
Theme: You’re either moving forward with your money or sliding back. Today’s episode tackles real callers’ everyday dilemmas, offering straight talk and encouragement on how to gain — and maintain — control of your financial life, no matter your starting point.
Episode Overview
In this episode, Rachel Cruze and Jade Warshaw provide practical, often tough-love advice to callers dealing with complicated family property issues, overwhelming debt, emotional money relationships, and pivotal financial decisions. Key themes include: setting boundaries with family, facing consequences for financial choices, how and when to get intense about debt payoff, and why staying in your financial lane is crucial for building real wealth.
Key Discussions & Insights
1. Family Home Ownership and Legal Messes
(00:43 – 09:01)
- Caller Drew had a family property legally transferred to him to protect it from creditors, but now parents expect him to "pay them back" despite their life residency and his lack of benefit.
- Jade and Rachel stress the importance of detaching from international legal entanglements (in this case, under German law) where you have no control or benefit.
- Key advice:
- Try to legally unwind the arrangement, even if it means giving up the asset.
- "I would not want my name on a deed or a situation that I have no control over or I'm not around." – Rachel, [08:32]
- Memorable moment: Rachel and Jade navigate the emotional undertones ("you're housing your parents out of obligation") and reinforce that it’s okay not to pay for an asset you don’t use.
- Final conclusion: Get a lawyer who knows German real estate and family law – ASAP.
- Key advice:
2. The True Cost of Backtracking on Debt-Free Living
(10:35 – 19:55)
- Caller Josh: Paid off his home, but took out a $105k HELOC for a remodel, now stuck making slow progress because of other life choices (private school for 4 kids, etc.).
- Jade and Rachel walk through Baby Steps, reminding Josh he’s "back to Baby Step Two" and should pause all investments and college savings to attack the $65k debt with urgency.
- Notable quote:
- “You’re living like you’re on Baby Steps 4, 5, and 6, but you’re not. You’re back to Baby Step Two, which means beans and rice, rice and beans.” – Rachel, [14:08]
- Jade calls out Josh’s hesitation (“you’re averse to paying off debt... you’re trying to kick the can down the road”) and presses him to get intense.
- Memorable moment: Josh confesses he was afraid Dave Ramsey would be harsher; Rachel tells him, “I’m nicer than him, though! I’m at least saying it with a smile.” [17:06]
- Takeaway: Don’t rationalize keeping slow or risky loans — when you go into new debt, commit to paying it off as fast as possible, no matter your past progress.
- Notable quote:
3. When Your Friends Don’t Practice What They Preach
(22:35 – 31:45)
- Caller Sarah struggles with jealousy and frustration toward a friend who claims to follow the Ramsey plan but behaves oppositely (buying luxury vehicles, leveraging debt).
- Jade and Rachel recommend detaching emotionally from friends’ financial decisions and focusing energy inward.
- “Just—mind your business and pay off your debt. And if she says she’s on the Baby Steps, you just smile that sweet Kentucky passive-aggressive smile and nod.” – Rachel, [25:21]
- They explore deeper friendship questions: Does resentment stem from comparison or underlying tension? Would boundaries strengthen your sense of peace?
- Advice: Stop policing others’ money choices, focus on living out your values, and only worry about children/vulnerable parties if they suffer as a result.
4. Balancing Career, Family, and Major Life Transitions
(34:38 – 40:16)
- Caller Morgan: Planning for a potential stay-at-home transition; husband was laid off and may have to take a lower-paying job.
- Rachel and Jade recommend:
- Test-run living on one income now—before it’s necessary.
- Don’t assume an automatic pay cut; job transitions can go either way.
- Review all real expenses and geographic cost-of-living before making permanent changes.
- Notable quote:
- “Be aggressive … don’t just assume he’s going to make less.” – Rachel, [38:04]
- Rachel and Jade recommend:
5. Safe 401k/IRA Rollovers & The Value of Professional Help
(40:23 – 42:30)
- Caller Trenton: Has multiple old 401(k)s, wonders whether to merge into an IRA.
- Rachel: Yes, consolidate for simplicity.
- “Have a financial planner in your corner. … It’s so helpful.” – Rachel, [41:43]
- Jade emphasizes professional guidance becomes more important as your portfolio and age grow.
6. Nightmare Spousal Student Loan Situations in Second Marriages
(44:40 – 52:43)
- Caller Donna: Married a man with $340k in federal student loans due to fraud, default, and ballooning debt. All assets are hers, minimal joint savings, no prenup.
- Jade and Rachel delicately press on issues of trust, fairness, and marital unity—”You need to sit with somebody and work through this... It feels like you’re just taking care of this guy.”
- Solution: Sell a property, pay it off, but—more importantly—seek couples counseling to address relational imbalance.
7. Surviving Catastrophic Divorce Debt & Single Parenting
(54:54 – 64:27)
- Caller Hannah: Recently divorced with two children; single parent, stuck with $200k in debt after an abusive marriage.
- Rachel/Jade’s counsel:
- Focus on four walls (food, shelter, utilities, transportation, daycare).
- Triage through smallest debts; see if a credit union or family member can help her unload her high-payment vehicle.
- Provided Hannah access to a Ramsey financial counselor for step-by-step support.
- “Your credit is already wrecked; find a little freedom in that—it can’t get worse.” – Jade, [60:47]
- Rachel/Jade’s counsel:
8. When (Adult) Kids Drain Your Resources
(86:57 – 94:41)
- Caller Sandra: Has given her 47-year-old son $35,000 over the last few years; he’s bankrupt, has addiction history, and is not changing.
- Jade: “If he were truly on the other side of this behavior, he would be initiating those conversations with you...” [91:03]
- Rachel: “You could give him $135,000 and it’s not gonna help him.” [91:15]
- They reinforce: Don’t enable adults, especially when patterns show no progress. Help his child directly if she is suffering.
9. More Lightning Round Caller Highlights
-
HEALTH INSURANCE:
- Young and healthy? High-deductible plans with HSAs make sense.
- “If you’re not in and out of hospitals, go for it.” – Jade, [78:00]
-
"SHOULD WE WAIT TO HAVE KIDS?”
- There’s never a perfect time, but if waiting brings anxiety instead of peace, maybe you’re ready now.
- “You should feel good about the decisions you’re making. And if you’re not, make a different decision.” – Rachel, [100:45]
-
FINANCIAL MISTAKE RECOVERY:
- Woman took out $60k of loans for ex-boyfriend’s business—left with balance, no contracts. Best to keep hustling (she’s paid $40k off), move forward, and never do it again.
Notable Quotes & Memorable Moments
“Normal is broke, and common sense is weird.”
– Rachel Cruze, [00:12]
“You’re living like you’re on Baby Steps 4, 5, and 6, but you’re not. You’re back to Baby Step Two.”
– Rachel Cruze, [14:08]
“Don’t try to fix your friend. Fix yourself. Mind your business and pay off your debt.”
– Jade Warshaw, [24:53]
“I would not want my name on a deed or a situation that I have no control over.”
– Rachel Cruze, [08:32]
“If he’s not paying, he needs to get a job. He needs to go work at Target or something.”
– Rachel Cruze, [93:42]
“You know your credit’s already wrecked; find a little freedom in that—it can’t get worse!”
– Jade Warshaw, [60:47]
Timestamps for Important Segments
- Family Property Tangled Legal Mess – 00:43 – 09:01
- HELOC and Baby Steps Realignment – 10:35 – 19:55
- Friends Who Don’t Practice What They Preach – 22:35 – 31:45
- Planning for Career/Familial Change – 34:38 – 40:16
- 401k Rollovers – 40:23 – 42:30
- Student Loan Ruining Second Marriage – 44:40 – 52:43
- Overwhelming Divorce Debt as a Single Mom – 54:54 – 64:27
- Adult Son Still Taking Mom’s Money – 86:57 – 94:41
- Lightning Round: Health Plans, Kids, Loan Mistakes, Financial Hope – 77:25 – end
Tone
The episode features classic Ramsey tone: direct, empathetic, sometimes tough-love, but always focused on practical steps and encouragement. Listeners are reminded that mistakes are normal, boundaries are healthy, and hope is possible—even if you’re untangling years of bad decisions.
Final Takeaway
Every dollar you earn is moving you forward or pulling you back. Don’t get stuck in “normal”—be weird, be intentional, and don’t let guilt, fear, or family drama dictate your financial journey. Wealth is built one wise (and sometimes hard) choice at a time.
Want more support? Take the next step:
- Find a SmartVestor Pro at ramseysolutions.com
- Try a free budgeting workshop (ramseysolutions.com/workshop)
- Take the Baby Steps quiz for a personalized plan
“There’s ultimately one way to financial peace, and that’s to walk daily with the prince of peace, Christ Jesus.” – Rachel Cruze, [126:57]