0:00

Hey guys, Dave Ramsey

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here, me and Dr.

0:05

John Deloni are coming

0:07

to a city near

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you on the Money

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and Relationships Tour. It's

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happening soon, so don't

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wait. Get your

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tickets at Ramsey

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solutions.com/

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tour. Live

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from the headquarters of Ramsey

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Solutions. It's the Ramsey show

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where we help people build

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wealth Do work that they

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love and create actual

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amazing relationships I'm Dave

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Ramsey George Campbell number

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one best-selling author host of the

0:50

George Campbell show co-host of smart

0:52

money happy hour and Ramsey personality

0:54

he is my co-host today at

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AAA, 825-5-225. Big day, a lot

0:59

of happenings around this show today

1:01

and give you a couple of

1:03

heads up on that. We don't

1:05

usually do that. First thing off

1:08

the block, but I'm going to

1:10

do it today. It is launch

1:12

day for my brand new book,

1:14

Build a Business You Love, teaching

1:17

small businesses, the clear path through

1:19

the five stages of business. We

1:21

worked with 10,000 small businesses

1:23

across America, and we are

1:26

one. and we have survived 2008 we've

1:28

survived tariff wars we've survived everything

1:30

and you have too if you're

1:32

fighting and scratching out there running

1:34

a business it's hard but we're

1:36

gonna give you the clear path on

1:39

how to get there build a business

1:41

you love is launching officially today thank

1:43

you for that. Congrats on the launch

1:45

day well thank you and happy tax

1:48

day. Perfect timing. We needed some good

1:50

news today. Someone said, did you do

1:52

that on purpose? And I went absolutely

1:54

not. But you know, so anyway, we're

1:57

doing it and Amazon Music is now

1:59

carrying the Ramsey show. and have been

2:01

as they're in the podcast world now.

2:03

So if you haven't checked out that,

2:06

be sure and do. That's the way

2:08

to go. And as a part of

2:10

them celebrating that, they are putting us

2:12

and this book. on one of the

2:15

big digital billboards in Times Square this

2:17

week. So in a couple of days...

2:19

Snap a photo if you see it.

2:21

Walking through Times Square with the 8,000

2:24

different digital billboards that are there, you'll

2:26

see our shining face up there as

2:28

one of them this week. Thank you

2:30

to Amazon Music for doing that

2:33

for us and for carrying our

2:35

show. We appreciate it. Also, basically

2:37

this show is broadcast in podcast

2:39

and video anywhere they'll let us. That's

2:41

the rule. And so anybody that has

2:43

it, anybody that does it, we put

2:45

it out there. So obviously a lot

2:47

of you are on Spotify, a lot

2:49

of you are on YouTube, a lot

2:51

of you are on Apple Podcast, and

2:53

Talk Radio, and thank you for all

2:55

of that. Spotify this week has gone

2:58

to video as well. So you can

3:00

now watch the show on video. We're

3:02

one of their first video products as

3:04

well. And so if you don't want

3:06

to watch it on YouTube for whatever

3:08

reason, and you're a Spotify. person you'll

3:11

like that we appreciate that so you

3:13

can find us there so just a

3:15

lot of things happening a lot of

3:17

things going this show is exploded

3:20

then the numbers are astronomical and

3:22

you guys out there are the reason

3:24

so we wanted to just take a

3:26

second and update you and tell you

3:29

thank you for all of that and several

3:31

of my friends that live in this area

3:33

and other areas I have been on their

3:35

podcasts in the last year. Tucker Carlson, I

3:38

flew up to Maine and did his and

3:40

he's been a friend for years and this

3:42

first time I'd ever been on his podcast,

3:44

that was a lot of fun. Theo von

3:47

came over and we had a lot of

3:49

fun with that. Theo's a new friend but

3:51

he lives here in the neighborhood and we've

3:53

been hanging out a little bit and I'm

3:56

really liking this young guy. He's a neat

3:58

young guy and we set up... his studio

4:00

and our studio. He does do his

4:02

podcast from here in Franklin, Tennessee, where

4:04

we do, but he came over and

4:07

we did that, I guess that was

4:09

almost six or eight months ago now.

4:11

And then another guy that lives in

4:13

the neighborhood that is a new friend

4:15

in the last, I guess, six months

4:18

ago or eight months ago, I met

4:20

him for the first time and really

4:22

like this guy and he's a young

4:24

podcaster that's exploded, become a big deal.

4:26

And he's about... literally a mile from

4:29

here where he does his where he

4:31

does his show maybe maybe two miles

4:33

where he does his show and a

4:35

Sean Ryan and I did a long

4:37

episode he does long-form stuff so we

4:40

were sitting there for over three hours

4:42

a long episode with him and it

4:44

dropped this week today yesterday afternoon whenever

4:46

it was his so the Sean Ryan

4:48

podcast with me and him hanging out

4:51

talking life and kids and marriage and

4:53

Christ and money of course and leadership

4:55

and business and Trump tariffs and anything

4:57

else he want to talk about we

4:59

just sat there and talked and classic

5:01

Sean Ryan but I'm not as normal

5:04

I'm not a seal team six guy

5:06

or a former CIA assassin or anything

5:08

so I'm not his normal fair but

5:10

but I really like the guy enjoy

5:12

hanging out with him and sharp young

5:15

dad a young husband and man he's

5:17

a great great interviewer So Sean Ryan,

5:19

if you want to see that long

5:21

form interview, you can pick it up,

5:23

of course, on his podcast. Sean Ryan's

5:26

show. Lots of things happening around here,

5:28

George. Busy week? And, you know, what,

5:30

150 teenagers came in a while ago?

5:32

Yeah. And I thought they were protesters.

5:34

Walking through the, they're not protesting. Not

5:37

in here. It was like a TikTok

5:39

ban protest or something. We wouldn't do

5:41

that. But no, I mean, I'm walking

5:43

through the lunchroom down there and I

5:45

hear this cheer come up like Rory

5:48

McElroy walked up on the green or

5:50

something and it's George walking in to

5:52

talk to the teenagers and I think

5:54

they thought the beetle were here. It

5:56

made me feel like a superhero. I

5:59

was very kind of, because they see

6:01

my face every day in the classroom

6:03

watching our foundations and personal finance curriculum,

6:05

so the guy from the TV is

6:07

in front of them now. So this

6:09

is as close as they'll get to

6:12

seeing a real celebrity. Did they say

6:14

that you're taller in person? I forced

6:16

them to say that. I said, do

6:18

you guys think I'm taller in person?

6:20

They said yes, absolutely. Absolutely. You're bulked

6:23

up, you're bulked up now. I sent

6:25

some snark. I sent some snark. I

6:27

sent some snark. Not those teenagers. They're

6:29

good kids. But it was funny, I'm

6:31

walking through the Dadgum Cafe, the Ramsey

6:34

Cafe downstairs where our team all eats

6:36

and I hear this cheer go up.

6:38

You got excited. And I'm like, wow,

6:40

what is it? Who's here? And I

6:42

turned, I said, I saw, I saw

6:45

him, I said, Ken, who's here? And

6:47

he said, George. It's a big deal,

6:49

Dave. I know it's not to you.

6:51

You're used to seeing me seeing me

6:53

in person, me in person, in a

6:56

person. But you, but you catch me

6:58

in a Costco. They give up on

7:00

the $1.50 hot dog. George is here.

7:02

George is here. It means we're helping

7:04

kids change our lives. I asked them,

7:07

I said, who's committing to living their

7:09

life debt free? All the hands flew

7:11

up in the air. So our work

7:13

has meaning. The next generation is getting

7:15

enough. Well, and you're the primary feature

7:17

in the. in the curriculum. I'm in

7:20

it a little bit. Rachel's in it.

7:22

Rachel's in there, Deloni's in there, but

7:24

I've got some Ken in there. But

7:26

you're the primary, right? I was hosting,

7:28

so you see a lot of me.

7:31

Oh, okay. Because I was all over

7:33

it. I just cut the different pieces

7:35

I knew that we put in the,

7:37

and it used to be all me,

7:39

God helped the poor teenagers. And they

7:42

like you. Well, they sort of did.

7:44

They don't love you, but they like

7:46

you. Oh, there we go. Okay. They

7:48

love you, but they like you. Oh,

7:50

there we go. Okay. They love you.

7:53

All right. They love you. All right.

7:55

No. They love you. Okay. They love

7:57

you. Okay. Oh. I ought to have

7:59

a little FOMO here and get your

8:01

school going and some of y'all ought

8:04

to maybe sponsor it. I talked to

8:06

a guy in Birmingham this week that

8:08

on the air here yesterday that one

8:10

of the teachers and one of the

8:12

local homebuilders sponsored it for his school

8:15

and his school is title one school

8:17

so it's almost 100% free lunch so

8:19

it's an area that's an area that's

8:21

an area that's lower social economic and

8:23

he goes I can teach these kids

8:25

how they never have to live like

8:28

their parents have lived. They're going to

8:30

become wealthy. They're not going to live

8:32

in poverty. They're not going to live

8:34

in poverty. local home for it for

8:36

all the kids to go through and

8:39

so they're teaching it at that high

8:41

school because of him so I love

8:43

it well we don't usually take a

8:45

segment and give you updates on us

8:47

but there's a lot of us happening

8:50

this week and so we want to

8:52

take a second to do that by

8:54

the way we'll be dr. John Deloni

8:56

and I will be in Louisville Kentucky

8:58

Monday if you haven't gotten your ticket

9:01

yet. And Atlanta Friday and Durham, North

9:03

Carolina on Wednesday. And so that's the

9:05

first three cities of our six city

9:07

tour next week. So get ready for

9:09

those as well. This is the Ramsey

9:12

Show. Jeff

10:21

Zander and the team at

10:24

Zander Insurance makes it easy

10:26

and affordable. I've used them

10:28

personally for 25 years. They're

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the only people I trust.

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Go to zander.com or call

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800-356-42-82. George

10:54

Camel Ramsey personality is my co-host

10:56

today Colin is in Fort Myers

10:58

Florida. Hi Colin welcome to the

11:00

Ramsey show Hey, how I am

11:03

better than we deserve. What's up?

11:05

My car I was in shopping

11:07

shopping mall and I was I'm

11:09

unstable off my bipolar disorder medication

11:12

I broke into my own car

11:14

my car my car my car

11:16

was to the tow facility. The

11:18

tow facility auctioned off because I

11:21

was in jail. Because when the

11:23

police came, I got scared and

11:25

I ran. Was in jail for

11:27

about 83 days. And while I

11:30

was in jail, the tow company

11:32

sold the car for 21,000. It

11:34

was worth 41,000. I shouldn't have

11:37

bought the car at the car

11:39

to begin with at Honda Accura.

11:41

And they ended up selling the

11:43

car at the tow company. and

11:46

an auction and then got 20

11:48

about 21,000 for it and there's

11:50

a balance of 20,945 and then

11:52

hard accurate sold the debt to

11:55

a creditor that's just wondering if

11:57

I should pay the creditor or

11:59

there's a recession on the So

12:01

I'm not sure what to do.

12:04

Wow. Okay, well I need to

12:06

help you reframe your story, okay?

12:08

The tow company didn't do anything

12:10

wrong. Yeah, they didn't. They sold

12:13

a car that had been sitting

12:15

on their lot for 83 days

12:17

in order to cover the tow

12:19

bill and the storage bill. And

12:22

so Honda, you owed Honda $41,000?

12:24

Yeah, I bought the car and...

12:26

I guess it's a matter of

12:28

a say it's not. I was

12:31

unstable when I bought the car.

12:33

They said I was a truck

12:35

driver or something like that when

12:37

I was an Uber driver to

12:40

get the loan. I signed off

12:42

at Congress, was unstable, sold me

12:44

the car for $41,000, couldn't afford

12:46

a $900 a month payment. I'm

12:49

trying to get the number straight,

12:51

honey. So you have $41,000 owed

12:53

on the car, the tow company

12:55

sold it for $21,000. How

12:58

did they give clear title to

13:00

it if the loan hadn't been

13:02

paid off? That's interesting. I'm not

13:04

sure I don't know I don't

13:06

know how far it alone works

13:08

I can't I can't imagine that

13:10

if the car didn't at least

13:12

pay off the lien Anyway, I

13:14

don't know how they got title,

13:16

but that's a different issue So

13:18

bottom line is is that they

13:21

put 20-something thousand dollars towards the

13:23

debt and you still owe 20-something

13:25

thousand dollars on a car that

13:27

was in a weird way sort

13:29

of repode right? Yeah, they did

13:31

this they just sent me a

13:33

letter saying I could settle for

13:35

eight thousand three hundred dollars. There

13:37

you go. Do you have any

13:39

money? I don't have any money

13:41

till November. I have a settlement

13:43

check coming in for fifty seven

13:45

hundred dollars in November. I can

13:47

probably settle with them in nine.

13:49

Okay. So I should do that.

13:51

Yeah, you're going to have to

13:53

clear the debt. It is a

13:55

valid debt and typically a repo

13:57

debt. You can clear for somewhere

13:59

around a quarter on the dollar.

14:01

And so the $20,000 balance should

14:03

you probably can clear it for

14:06

round 5. Eight was their first

14:08

offer. You could probably get them

14:10

down to five, but you don't

14:12

have five today. So you can't

14:14

really make them a counteroffer today.

14:16

What you could do is just

14:18

ignore them and let them get

14:20

a little bit more sweaty before

14:22

you have to deal with them.

14:24

That's not a bad thing. Eventually,

14:26

they're going to get around assuuing

14:28

you for that. Are you working?

14:30

six months out of work. I

14:32

went off my psychiatric drugs right

14:34

before I sold my condo four

14:36

years ago. And I came into

14:38

$70,000 and went through four years

14:40

of hell until I finally realized

14:42

three weeks and fresh out of

14:44

the hospital two weeks ago. So

14:46

you're out of the hospital two

14:49

weeks ago now? Pretty much, yeah.

14:51

Are you on back on the

14:53

meds? Yeah, I'm back on the

14:55

meds now. I take lithium and

14:57

a lot of drugs. But I

14:59

just... It's a little shaky right

15:01

now, a little shaky, but I'm

15:03

stable. So working through things, but

15:05

yeah, I said 14 years old,

15:07

I started a vending company, had

15:09

that for 10 years, and then

15:11

worked for pizza delivery for about

15:13

another 10 years or so. So

15:15

it's been a rough ride. I

15:17

believe I saw Jesus Christin in

15:19

the hospital in Tampa after I

15:21

was doing 45, 55 miles an

15:23

hour. I fell asleep at the

15:25

wheel. I prayed to God in

15:27

Jesus' name to stop my car

15:29

in the middle of traffic. I

15:31

didn't know. I just prayed to

15:34

him to help me. And I

15:36

was going 45, 55 miles an

15:38

hour in Sarasota. He stopped my

15:40

car in the middle of traffic.

15:42

I had cars and farming cars

15:44

aside me. He got scratched my

15:46

body. You know, it was in

15:48

Tampa Hospital. Colin, the first thing

15:50

before we worried about healing your

15:52

numbers. healing your math and

15:54

your finances is for calling to

15:57

get healing okay yeah and so

15:59

what work you just did at

16:01

the hospital and whatever work you've

16:03

got to do to finish stabilizing

16:06

your meds to get there. That

16:08

keeps you, if you can get

16:10

there and stay there, it keeps

16:12

you from falling into the traps

16:15

of buying things, of getting things,

16:17

getting things stored, getting in jail.

16:19

It keeps you out of all

16:21

those traps because all those things

16:23

set all your financial numbers back

16:26

on. It makes it real tough.

16:28

And so almost everything you're having

16:30

to... clean up is the result

16:32

of you being sideways, right? And

16:35

so if we can get, if

16:37

we can help, if you can

16:39

focus on Colin, focus on what

16:41

your therapist is saying, get those

16:44

drugs balanced, and getting them balanced

16:46

is a trick, you know that,

16:48

and getting them right to where

16:50

you have enough energy to live,

16:53

but you're also not completely freaking

16:55

manic, which you sound a little

16:57

bit right now like you are.

16:59

But... I want you to work

17:02

on healing Colin and then as

17:04

you do that you'll be able

17:06

to get and hold a job

17:08

of some kind to create an

17:11

income and then you can settle

17:13

this repossession deficit for somewhere around

17:15

25 cents on the dollar. So

17:17

$5,000 will clean this particular mess

17:20

up but you will have seven

17:22

other messes if Colin doesn't find

17:24

healing. Man, we'll be praying for

17:26

you brother. Sounds like you've really

17:29

been through it. And I want

17:31

you to get, I want you

17:33

to get stable and get straight

17:35

and narrow and for your sake

17:38

and just find, find some peace

17:40

and find some ground you can

17:42

walk on this solid. And another

17:44

tactical piece of this is adding

17:47

some stop gaps in there like

17:49

freezing your credit with all the

17:51

bureaus so that you can't open

17:53

debt. Because right now it could

17:56

just take one little slip up

17:58

and you open a new line

18:00

of credit, got another loan, and

18:02

like you found out, these dealerships,

18:05

these lenders, they don't care. They'll

18:07

do whatever it takes to get

18:09

you another loan. And so put

18:11

some stop gaps in place to

18:13

help. protect yourself. But that's that

18:16

scary. Mike is in Connecticut. Hey

18:18

Mike, how are you? How can

18:20

we help? Sure. So I have

18:22

some rental properties that as I

18:25

get, I guess as I get

18:27

closer to retirement, I'm looking for

18:29

some advice on how you would

18:31

exit owning the run of properties

18:34

other than. selling and just paying

18:36

the taxes. That's pretty well it

18:38

if you want to exit. I

18:40

mean you can do 1031 exchanges

18:43

but you would be trading these

18:45

rental properties for other rental properties.

18:47

Right, I guess that's not exiting.

18:49

What do you think about a

18:52

REIT exchanging into an REIT? You

18:54

can't. It's

18:57

not like kind. Has to be actively

18:59

managed property and you're not actively managing

19:02

a read. A read is more of

19:04

a mutual fund than it is a

19:06

real estate investment. So you have to

19:08

sell it, then use the proceeds to

19:11

invest into a read. But you're going

19:13

to have the taxes on it. So

19:15

1031 tax deferred does not work to

19:17

a read. Not in my opinion. I

19:20

mean you have to get a professional

19:22

tax advice if you want, but if

19:24

somebody told you that on Tik-talk, I

19:26

would be questioning it. I don't think

19:29

that that'll work. Because it has to

19:31

be income producing to income producing. You

19:33

can't trade your lake house for another

19:36

lake house in a 1031, unless you

19:38

rent it 181 days a year and

19:40

call it a rental property over six

19:42

months of the year. So you can't

19:45

trade your personal residence in a 1031.

19:47

It doesn't work. It's income producing property

19:49

for income producing property. And so you've

19:51

got to, you know, active... it's actively

19:54

managed stuff and so that's what you're

19:56

looking at. What you can do if

19:58

you want to do is 1031 is

20:01

move from something that is like if

20:03

you've got a bunch of houses and

20:05

you You want to move out of

20:07

the residential drama of tenants, move to

20:10

a boring tenant like a warehouse deal.

20:12

Warehouse tenants are boring. And a lot

20:14

of those are triple net, meaning they

20:16

pay the taxes, the insurance, and the

20:19

maintenance and pay you rent. And you

20:21

don't do anything, except collect a check

20:23

then. Now that's that you can do

20:25

a 1031 on for some houses. So

20:28

you could look at doing some of

20:30

that. But otherwise you're going to pay

20:32

some capital gains. And depending on how

20:35

long you've held them and how far

20:37

you've depreciated down your basis, your capital

20:39

gains could be substantial. I hate to

20:41

admit this, but I don't always eat

20:44

right. I know. I need to eat

20:46

more fruits and veggies, but sometimes I

20:48

just have to pound some chips because

20:50

they taste so good. That's why I

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That's the letter y-r-e-f-y.com/Ramsey might not be

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in all states. Today's question comes from

24:57

Allison and Minnesota. I agree with your

24:59

advice not to get whole life insurance,

25:01

but I have a question about it.

25:04

With term life insurance, if you outlive

25:06

the term, you lose all of the

25:08

money you paid in premiums. With whole

25:10

life, you would still have some cash

25:13

value. Is the difference between them worth

25:15

the risk of getting nothing? Well,

25:17

here's the thing term life is not

25:19

an investment so the idea that you

25:22

got nothing that's like saying well my

25:24

house didn't burn down So I guess

25:26

I wasted all that money on homeowners

25:28

insurance It's not the point. It's to

25:30

replace your income if something were to

25:32

happen to you And by the way

25:34

that whole life is going to be

25:36

10 times the cost and it's a

25:38

giant rip off because it all goes

25:40

to the whole life company So there

25:42

is a huge difference and term will

25:44

still come out ahead in every case

25:46

Yeah, so the thing is this term

25:48

is 120th It's 20 times less expensive.

25:50

And if you invest the other 95

25:52

cents on the dollar that you're not

25:54

spending on whole life into your retirement,

25:57

you're going to have millions of dollars.

26:00

And that beats what you would

26:02

have had had you put the

26:04

same amount of money in whole

26:06

life. So what you're comparing here

26:08

is inaccurate. You're saying that term,

26:11

I'm going to get nothing in

26:13

whole life. I put in the

26:15

same amount and I'll get something.

26:17

No, you put in 20 times

26:19

more. And if you had taken

26:21

that difference, term and invest the

26:23

difference somewhere else, you didn't spend

26:25

the same money you spent on

26:28

the whole life, you would end

26:30

up with a lot more. Whether

26:32

you live or whether you die.

26:34

And so that's the way to

26:36

go. But life insurance, all insurance

26:38

is not an investment. No insurance

26:40

is an investment. It's a better

26:43

way of saying it. George is

26:45

exactly right. If your house burns

26:47

down, doesn't burn down, and you

26:49

never got money for your homeowner's

26:51

insurance, did you get ripped off?

26:53

No, you transferred the risk that

26:55

you could not afford to buy

26:57

a new home if your house

27:00

burnt down without insurance. You transfer

27:02

the risk if someone dies with

27:04

life insurance that you're depending on

27:06

your income. And so if you're

27:08

32 years old, you got three

27:10

little kids and no money, and

27:12

Papa dies, Mama's got a mess.

27:15

So you need to go to

27:17

Zander Insurance and you need to

27:19

get life insurance to transfer the

27:21

risk because you can't afford to

27:23

die. You can't afford to have

27:25

your house burned down without homeowners

27:27

insurance. And so you can't afford

27:29

to die without life insurance to

27:32

make sure your family is taken

27:34

care of. So you're transferring the

27:36

risk. It's not an investment. And

27:38

so you've got all this convoluted,

27:40

Allison, which tells me that you've

27:42

been talking to and stop it,

27:44

a whole life agent. Stop talking

27:47

to them. Because the words you're

27:49

using and the way you're bringing

27:51

this up is straight out of

27:53

their little playbook. It's out of

27:55

their little script on how they

27:57

sell this crap. What's the old

27:59

saying? If you don't argue with

28:01

an idiot, they'll drag you down

28:04

and beat you with experience. That's

28:06

most whole life agents. Jade is

28:08

in... Sacramento, hi Jade, how are

28:10

you? Good, how are you? Better

28:12

than I deserve, what's up? Yeah,

28:14

so my husband and I actually

28:16

took your guys's high school course

28:19

and we are completely debt free.

28:21

We do have a mortgage, but

28:23

other than that, no credit card

28:25

debt. And my question is, can

28:27

we afford a substantial vacation? At

28:29

what point can we spend money

28:31

on a vacation? Well, we tell

28:33

folks until you're through Baby Step

28:36

3. Do you know what that

28:38

is? Let me see. I have

28:40

my notes. I'll tell you. It's

28:42

okay. Dave memorized it. The Baby

28:44

Step 3 is a fully funded

28:46

emergency fund and you're out of

28:48

that. You should not go on

28:51

vacation until you have those done.

28:53

If you've got your, in other

28:55

words, if you've got your emergency

28:57

fund, you're to Baby Step 4.

28:59

which means you should be putting

29:01

15% of your income away for

29:03

retirement and you should be putting

29:06

something for your kids college and

29:08

putting a little extra on your

29:10

mortgage if in that budget you

29:12

can pay cash for a vacation

29:14

a couch or an upgrade in

29:16

a car or whatever other spending

29:18

you want to do that's the

29:20

time you would do it and

29:23

it sounds like that might be

29:25

where you are yeah we have

29:27

we have a good amount saved

29:29

for emergency CD accounts. And do

29:31

you have 15% going into retirement?

29:33

Yes. Good. Okay. And what are

29:35

we talking about spending on a

29:38

vacation? Three to five thousand, five

29:40

thousand would be generous around three

29:42

thousand. Okay. And what's your household

29:44

income? Right now it's 82 gross

29:46

sixty net. And you would pay

29:48

cash for this vacation? Yes.

29:51

No more debt. No debt. No

29:53

more debt ever. Yes, sir. Okay.

29:55

Okay, all right. Yeah, that's what

29:58

we, that's when we would tell

30:00

you to do it. Do you

30:02

have the money today? Yeah, it's

30:05

in our savings. Wonderful. Wait, wait,

30:07

wait, wait, your savings, is that

30:09

your emergency fund? So we have

30:11

27,000 in our saving emergency, so

30:14

it's more than our. Okay, you

30:16

need to quick call, you need

30:18

to quick calling your savings. Okay,

30:21

you need to take all of

30:23

your savings and give it a

30:25

name. How much of the 27,000

30:28

is the emergency fund? How much

30:30

of it is the vacation fund?

30:32

How much of it is the

30:34

vacation fund? How much of it

30:37

is the Christmas fund? How much

30:39

of it is whatever? 4,000 of

30:41

the 27 is my vacation fund

30:44

and 3,000 of my 27 is

30:46

saving up for a better car

30:48

or Christmas next winter or whatever.

30:50

I don't care. But you should

30:53

give your dollars a name because

30:55

if you just call it savings,

30:57

then you can emotionally justify taking

31:00

any of it out and get

31:02

too far down into your emergency

31:04

fund, but you don't want to

31:06

do. Yeah. Okay. So you and

31:09

your husband decide how much of

31:11

this is your emergency fund? And

31:13

I actually, George and I generally

31:16

would recommend you put your emergency

31:18

fund portion in a separate account.

31:20

I like keeping them all separate.

31:23

So you don't touch it for

31:25

anything. And then you could have

31:27

a miscellaneous savings where we're saving

31:29

up for different things and we

31:32

itemize those. But I like having

31:34

it separate so I don't. get

31:36

all excited about the vacation and

31:39

or the car purchase or whatever

31:41

and you know all of a

31:43

sudden I'm down into that emergency

31:45

fund and then I have an

31:48

emergency and oh my now we

31:50

got a mess again so but

31:52

it sounds like you're ready to

31:55

go Jade enjoy your vacation kiddo

31:57

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Health Trust financial.com. Thanks

34:00

for being with us America. We're

34:02

so glad you are here. Connor

34:05

is in Toronto, Ontario. Hey, Connor,

34:07

what's up? Hey, I eat today.

34:09

Better than I deserve. How can

34:12

I help? Yeah, so I'm 25

34:14

married. I got a daughter and

34:17

about $550,000 in debt, including a

34:19

mortgage. Just kind of feels like...

34:21

I have your every dollar out,

34:24

I've been trying to use it,

34:26

but even that it just feels

34:28

really overwhelming trying to see. Basically

34:31

no light at the end of

34:33

the tunnel. So, right, so it's

34:36

a little, you need some guidance

34:38

basically on how to work it

34:40

out from here. How much consumer

34:43

debt do you have? Let's separate

34:45

the mortgage out because that'll help

34:47

take away this mountain of debt

34:50

you're looking at. Sure. Yeah. $140,000

34:53

home equity line of credit, $14,000

34:55

personal line of credit on my

34:57

wife's side that was transferred over

34:59

from a student loan, $1,000 credit

35:01

card, and a $5,000 credit card.

35:03

So $165,000 total. What was the

35:05

home equity line for? Consolidating, other

35:07

debt. What was that debt? Two

35:09

cars. that we had and then

35:11

some of it too was basically

35:13

we're all in peer to pay

35:15

Paul right my wife went on

35:18

here in Ontario like you get

35:20

18 months of attorney leave right

35:22

so but when you are in

35:24

18 months the subsidy you get

35:26

from the government is very low

35:28

like it could be maybe $500

35:30

a month right so I was

35:32

using that to pay for our

35:34

home expenses On top of that

35:36

she couldn't afford to go on

35:38

18 months worth of leave, but

35:40

did it anyway 12 or 18

35:42

months. Yeah, that's what you get

35:44

so she No, you don't get

35:47

it at full. You get it

35:49

at 500 bucks a month and

35:51

starve the death. So she couldn't,

35:53

you guys could not afford for

35:55

her to go out for 18

35:57

months, but she did anyway. Yeah,

35:59

she was on maternity for that

36:01

time. Then used debt to fund

36:03

it essentially. Yeah, at the time

36:05

I was working a commission job,

36:07

right? So I wasn't making a

36:09

steady income. At a time during

36:11

that 18 months. At the time

36:13

you couldn't afford for her to

36:16

take that much time off and

36:18

she did anyway. And she did

36:20

anyway. Yes, okay. I want y'all

36:22

to hear that. I want you

36:24

because you can't you can't go

36:26

into these things and you fall

36:28

backward into them again. You can

36:30

do that once, but you need

36:32

to learn what the mistake was.

36:34

And the mistake was you can't

36:36

look up and go, well, I

36:38

don't want to work. Yeah, that's

36:40

not an option when you're broke.

36:42

All right. So, what do you

36:45

make now? I make about 80

36:47

to 100,000. 65-ish-70. So you make

36:49

165. Yeah, I will get raises

36:51

for the next three years. How

36:53

long has she been back to

36:55

work? For about six to eight

36:57

months now. Okay. Because you should

36:59

have easily been making it with

37:01

both of you working. And making

37:03

progress. I mean you should be

37:05

putting five, six, eight, ten thousand

37:07

dollars a month on these debts.

37:09

Yeah, I mean our take home

37:11

pay probably per month is about

37:14

eight thousand. Oh yeah, you're in

37:16

Canada. You guys get your butts

37:18

tight stuff. We whine about taxes

37:20

in the US and you make

37:22

us look like a champion. Are

37:24

you guys investing too at all?

37:26

Yeah, she has an investment account

37:28

here. We call it a tax-free

37:30

savings account, right? You get the...

37:32

You get to invest and you

37:34

get to take out tax free

37:36

but you're capped at about $6,000

37:38

a year to put in. You

37:40

need to stop investing temporarily and

37:43

work what we call the baby

37:45

steps. Have you ever heard of

37:47

that? I have just based on

37:49

a podcast like I've thought about

37:51

getting Financial Peace University. I didn't

37:53

know if it translated it over

37:55

to Canada but I'm sure the

37:57

principals would too. I'll send you

37:59

a copy of the total money

38:01

makeover book. and George then he

38:03

would work the baby stage. Yeah,

38:05

so baby step one is a

38:07

thousand dollar starter emergency fund. Likely

38:09

you guys have that. And then

38:12

baby step two, again you're pausing

38:14

investing, we're not borrowing another dime,

38:16

you're going to pay off all

38:18

of your debts from smallest to

38:20

largest balance with the debt snowball

38:22

method. So you're making minimum payments

38:24

on all the debts, but on

38:26

that smallest one, attack it with

38:28

a vengeance, until you're completely... debt

38:30

free and if you do it

38:32

that way making a hundred sixty

38:34

five and maybe working even more

38:36

maybe you get a side hustle

38:38

you guys can clean this up

38:40

in two years no eating out

38:43

no vacations no investing no over

38:45

taxation don't over withhold make sure

38:47

you're withholding is the only what

38:49

you have to pay in taxes

38:51

no more you don't want to

38:53

get tax refunds like we do

38:55

in the US it's a bad

38:57

idea and you guys got to

38:59

live on beans and rice rice

39:01

and beans Because you have made

39:03

a freaking mess at 25 years

39:05

old with babies. And that's not

39:07

unusual. You're not a horrible person.

39:09

Most people live like you're living.

39:12

But as you described when you

39:14

opened the call, when I picked

39:16

up the phone, it's no freaking

39:18

fun. Normal sucks. And I don't

39:20

want to be normal. So you've

39:22

got to get mad and pay.

39:24

And if you've got any savings

39:26

at all that's not retirement savings,

39:28

start throwing it at these debts

39:30

tonight. Knock out that $1000 credit

39:32

card, cut it up. Knock out

39:34

that $5,000 credit card, cut it

39:36

up. Knock out that little $14,000

39:38

personal loan and be done with

39:41

it. Man, that's only... That right

39:43

there is only 20 grand. You

39:45

should be done with that just

39:47

a few months. And then that

39:49

gets you down to the home

39:51

equity line and the house and

39:53

then I want you to plow

39:55

through that home equity line as

39:57

fast as you possibly can or

39:59

refinance the house and roll the

40:01

home equity line into it either

40:03

one. But no more borrowing ever.

40:05

You need to have plastic surgery

40:07

chop up the credit cards. A

40:10

plasticomy. You need to decide I'm

40:12

not living like this anymore. So

40:14

that you can get clear of

40:16

this, because you've spent more than

40:18

you make your entire married life.

40:20

And it's reached the end mathematically.

40:22

You don't have that option to

40:24

do that anymore. And it's stressful,

40:26

and it makes you feel ashamed,

40:28

and it puts a strain on

40:30

your relationship. And you guys, as

40:32

a couple, as two grown-ups, have

40:34

to live on less than you

40:36

make. Period. Period. No exceptions. And

40:39

by the way, Connor, that's all

40:41

of us. We all of you

40:43

people listening. All of you people

40:45

watching. You have to live on

40:47

less than you make. And I

40:49

was the master at spending money

40:51

and borrowing it and borrowing to

40:53

cover up my disorganization, my impulsive

40:55

spending, my entitled mentality. I had

40:57

all of that in my 20s.

40:59

And it's one of the things

41:01

that led me to build a

41:03

business that caused me to go

41:05

bankrupt. And that's how I learned

41:08

all this stuff is the hard

41:10

way. So I've done it worse

41:12

than you. And one of the

41:14

biggest traps out there is when

41:16

you play the shell game, you

41:18

start moving the debts around, well

41:20

we can consolidate that, we can

41:22

wrap it into the heelock, and

41:24

you feel like you did something,

41:26

because action was taken. but you

41:28

just moved the debts around and

41:30

didn't clean any of it up.

41:32

In fact, it probably is worse

41:34

now because they're not separated, so

41:37

you don't get to do the

41:39

debt snowball with a giant helox

41:41

in there. And so this is

41:43

the stupid tax that we talk

41:45

about, and one day you look

41:47

back and go, man, remember when

41:49

we were young we made all

41:51

those decisions? Well, at 27, you

41:53

guys are going to be completely

41:55

dead. if you do it this

41:57

way, with the rest of your

41:59

life in. Or sooner. Yeah. You

42:01

heard, Dave, get to work. 18

42:03

months? Beans and rice. No freaking

42:06

life. And I don't care if

42:08

your broke friends are making fun

42:10

of you. If your broke friends

42:12

are making fun of your financial

42:14

plan, that means you're right on

42:16

track. It's like fat people making

42:18

fun of your diet. You don't

42:20

care. I don't care. I'm trying

42:22

to stay alive. I'm trying to

42:24

build a future here. So you

42:26

don't get a vote in my

42:28

life. You know, and when you

42:30

reach that kind of stuff, that's

42:32

when everything changes. And so you

42:35

and your wife tonight need to

42:37

have a come to Jesus meeting

42:39

and the two of us say,

42:41

all right, we are not doing

42:43

this anymore. Brand new life. Two

42:45

children, having children, no more. We're

42:47

two adults now. And we're going

42:49

to make adult decisions and we're

42:51

going to get after this. and

42:53

adults devise a plan and follow

42:55

it. Children do what feels good.

42:57

And I gotta tell you, I

42:59

don't care if you're 55 or

43:01

you're 25, if you just do

43:03

what feels good. I work so

43:06

hard, I deserve it. You don't

43:08

deserve nothing. Shut up, you winer.

43:10

You deserve it when you saved

43:12

up the money and paid for

43:14

it because you worked your butt

43:16

off That's when you deserve it

43:18

until then you didn't deserve it.

43:20

I wear a card like we

43:22

all don't work hard. You want

43:24

some cheese with that wine? Shut

43:26

up! They've just served up a

43:28

charcuttering board right there. I'm serious

43:30

man. I just I deserve you

43:32

don't deserve it. You just you

43:35

deserve to get off your butt

43:37

to straighten things up. That's what

43:39

you deserve That's what you deserve

43:41

That's what you deserve That's it

43:52

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headquarters of Ramsey Solutions. It's the

45:18

Ramsey Show where we help people.

45:21

Build wealth. Do work that they

45:23

love. and create actual, amazing relationships.

45:25

I'm Dave Ramsey, your host, George

45:28

Kimmel, Ramsey Personality, number one, best-selling

45:30

author, co-host, a Smart Money Happy

45:32

Hour, with our own Rachel Cruz,

45:35

ease my co-host today. Open phones

45:37

at AAA, 825, 225, 225, Jeff's

45:39

in Kansas City. Hi Jeff, how

45:42

are you? Great Dave, how are

45:44

you? Better than I deserve, sir.

45:46

How can I help? Well,

45:49

I'm 64 years old. I

45:51

have no retirement. I work

45:53

at commission job. I've built

45:55

a insurance agency, passive income.

45:57

some degree. And my question

46:00

is this, that I'm learning

46:02

paycheck to paycheck right now

46:04

with no retirement. What do

46:06

I need to do with

46:08

my stocks, which I have

46:10

no control over, will start

46:12

holding value? That value should

46:14

come in, they're telling us

46:16

when we go public, somewhere

46:18

at $15 to $30 a

46:20

share with what I have.

46:22

have to pay the 40%

46:24

tax, I believe that is,

46:26

what it is. You're looking

46:28

at about 600 on the

46:30

low end to 1.5 on

46:32

the high end that I

46:34

will get when I cash

46:37

those stocks in. And when

46:39

is this? What would I

46:41

do? Like a day, that's

46:43

a problem. We're being told

46:45

it could happen in a

46:47

year, could happen in three

46:49

years. So the insurance agency

46:51

that you're a part of

46:53

is going to go public.

46:56

The IMO that we that we

46:59

are part of I own my

47:01

own agency was under the IMO

47:03

The IMO is going to go

47:05

public in one to three years.

47:08

They're telling us Okay, and you

47:10

don't have any control over any

47:12

of that No Okay, and why

47:14

are you after all these years

47:16

of building a book of business?

47:19

Why are you still living paycheck

47:21

to paycheck? That makes no sense.

47:23

I had to Let go of

47:25

50% of my pass of income

47:28

due to health reasons. And I

47:30

have an opportunity to build that

47:32

back up, which I can. Or

47:34

do I go out? Why did

47:37

you have to surrender your book

47:39

of business for health reasons? Because

47:41

you couldn't service it? Fast stress

47:43

in the night and basically was

47:46

out of the field for a

47:48

while. One story short, you have

47:50

a spread with the agents underneath

47:52

you. and the largest leg was

47:54

blanking me. And once you get

47:57

blank... you have no override that

47:59

passive income basically goes away when

48:01

that happened 50% of my passive

48:03

income I was making about 120,000

48:06

I'm making probably 70 to 80

48:08

now okay and you're not that's

48:10

the passive side are you are

48:12

you actively working again are you

48:15

able to work yeah yeah I

48:17

stay in the field to some

48:19

degree just to keep my licenses

48:21

in why aren't you working like

48:24

a maniac if you're broke I'm

48:26

lazy. I mean, that's the question

48:28

that it's my time teach for

48:30

denning is, do I put my

48:32

time and energy because I need

48:35

me to go back out? I

48:37

take it's some time off, which,

48:39

you know, but based on giving

48:41

myself where I need to be

48:44

emotionally mentally, my question is, do

48:46

I put it back into the

48:48

agency and we build that? I

48:50

can. There's an upside to that,

48:53

or do I just go out

48:55

and get a $20 to $30

48:57

to $30. remote phone gig that

48:59

would well where do you make

49:02

the most money I assume you

49:04

make the most money in your

49:06

craft you should make a lot

49:08

more than $20 an hour if

49:11

you start making sales calls again

49:13

absolutely well go like sales calls

49:15

dude I'm doing that on a

49:17

limited basis the bigger piece to

49:19

that is what I've let go

49:22

of gave is the building piece

49:25

So there's two pieces to our business

49:27

model. I understand. Produce? Right. Which I

49:30

can do with my eyes shut. Well,

49:32

you need, yeah, but you need the

49:34

money, you need the short-term money until

49:37

the thing goes public. Correct. Okay, so

49:39

go work your butt off till it

49:41

goes public when it goes public, you

49:44

can quit. Well, possibly. If you get

49:46

a 600 to 1.2, I think you

49:48

can invest that at 67 years old

49:50

and you'll be able to quit. Well,

49:54

what is a good number? Do you

49:56

know what that number is? Would like

49:58

expectancy that if you can? live off

50:00

of if you can live off of

50:02

8% and you invest it at 12%

50:05

that's a good number okay so if

50:07

you got a million dollars you'll be

50:09

living off 80K if you invest it

50:11

in good mutual funds and it makes

50:13

an average of 12 which the market

50:15

has averaged 11.8 since it began the

50:17

last two years 23 and 26 are

50:20

20 24 and 23 it averaged over

50:22

25% now that's not normal normal though

50:24

But in those two years if you'd

50:26

taken off eight your portfolio would have

50:28

grown substantially Okay, so if you take

50:30

off eight as long as it's making

50:32

more than eight the thing will run

50:35

perpetually and That's invested in good growth

50:37

stock mutual funds But I think you're

50:39

sitting around whining about all this stuff

50:41

in the rear view mirror and you

50:43

don't feel like you want to go

50:45

get it again and you don't really

50:48

have a choice You got to go

50:50

get it all this stuff stacking up

50:52

around you and it all reflects back

50:54

on this time that you took off

50:56

and it costs you half your book

50:58

of business, cost you your overrides and

51:00

yeah now you gotta go back and

51:03

rebuild your short-term income. All I want

51:05

you to do is go make a

51:07

hundred hundred and fifty a year for

51:09

the next three years while you're waiting

51:11

on. to put a little money in

51:13

the bank, put a little money while

51:15

you're waiting on the other thing, your

51:18

ship to come in, for God's sake.

51:20

I wouldn't wait for this payout to

51:22

get control of your money and get

51:24

rid of this day. You can't live

51:26

on 60K and pay off 70,000 to

51:28

the IRS while you're waiting and you

51:31

don't know when it's coming. So you've

51:33

got to go make some money and

51:35

$20 an hour out there selling. So

51:37

you're not going to go work at

51:39

Target. Shut up. Don't even make that

51:41

offer. You know, go do the thing

51:43

that you don't want to do. Oh,

51:46

well, it goes with the choices you've

51:48

made. And so that's what you got

51:50

to do man. So, um, you know,

51:52

I've been in those same exact situation.

51:54

So I'm not fussing at you. I'm

51:56

coaching you. I'm your coach at halftime

51:59

and we're behind. And you need to

52:01

go out there in the third quarter

52:03

and catch us back up. And I'm

52:05

saying, go hit somebody, dude. Roll up

52:07

your sleeves and get it. Suck it

52:09

up, Butter Cup. Here we go. We've

52:11

seen some incredible inspirational stories of people

52:14

in their 60s who cleaned up a

52:16

mess who cleaned up a mess and

52:18

still were able to retire to retire

52:20

to retire with dignity. going to have

52:22

a lot of money when the story

52:24

ends. There's a silver lining here. But

52:26

you got to get to that IPO.

52:29

You got to get to that public

52:31

offering. And that's when you get there,

52:33

you're going to get six to six

52:35

hundred to one point two, you said.

52:37

Your share of the stock at that

52:39

point. And nothing bad is going to

52:42

happen by you increasing the book of

52:44

business and increasing your income in the

52:46

meantime. Nothing bad happens except you're not

52:48

going to get to sit on your

52:50

butt. That's the only bad thing that

52:52

happens. Do appreciate the honesty of him

52:54

just coming out and saying I'm lazy.

52:57

I'm really I don't want to do

52:59

it But you know you put yourself

53:01

in a position where you don't have

53:03

that option So when you owe the

53:05

KGB money, I mean the IRS money

53:07

You've got to go do stuff to

53:09

get the wolf away from the door

53:12

because that wolf's got teeth man You

53:14

don't want those people in your life.

53:16

They'll just go right into your bank

53:18

account They're not scared. They have the

53:20

power to do whatever they want. Yeah,

53:22

it's power to do whatever they want

53:25

I'm not afraid of tax day. I'm

53:27

not afraid of many things, but on

53:29

April the 15th, I'm afraid of the

53:31

IRS. And here's what's interesting. I heard

53:33

this on, I was on Fox business

53:35

this morning. The IRS has issued all

53:37

these guns, and they've had more accidental

53:40

discharges, the gun going off accidentally, than

53:42

they have people, them actually ever firing

53:44

the guns at a bad guy. Oh

53:46

boy. Well, it's an IRS agent with

53:48

a gun. Come on. That was a

53:50

bad idea. Not a highly trained individual.

53:52

Not Seal Team 6. This is the

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56:43

Randy's in Greensboro in North

56:45

Carolina. Hi Randy, welcome to the

56:48

Ramsey show. Hello, how you doing today?

56:50

Better than I deserve. What's up?

56:52

My this is more of a

56:54

curiosity. type question. I understand that

56:56

real estate, the value of real

56:59

estate goes up and the value

57:01

of anything which goes down, but

57:03

the question is why is that?

57:05

Why does real estate go up?

57:07

Why does cars? Why does mobile

57:10

homes and all that stuff? Why

57:12

does that go down? That's more

57:14

of a curiosity, more of a,

57:16

you know, the underlying,

57:18

what's the underlying reason

57:20

for that? Well, there's no

57:23

magic reason for it. In

57:25

general, it's supply and demand.

57:27

There's a shortage of real estate

57:29

all the time. You've heard the

57:31

saying they're not making any more

57:34

land. And there's traditionally in

57:36

most of the last, say, 100

57:38

years or so in America, there's

57:40

been more buyers of houses than

57:43

there were houses. And so

57:45

anytime there's a shortage on anything

57:47

that is a commodity that is

57:49

a commodity that is a commodity.

57:51

it causes the value causes the cost

57:53

to go up even something as stupid

57:55

as you remember a few years ago

57:58

beanie babies there there people were Going

58:00

after are you remember cabbage patch

58:02

kids at Christmas or something like

58:04

that where there's a shortage on

58:06

a toy or X boxes There's

58:09

a temporary shortage a created shortage

58:11

because they just don't make enough

58:13

to make them uber popular And

58:15

so there's more people to buy

58:17

them than there are items in

58:20

any commodity whatever it is that

58:22

there's a shortage of the price

58:24

goes up That's the main reason

58:26

and cars they make more of

58:28

them every year And so they

58:30

spit off cars like, you know,

58:33

thousands and thousands and thousands a

58:35

day, right? And so, um... And

58:37

you want the latest and greatest,

58:39

because now there's better technology. Yeah,

58:41

that's the second reason is it's

58:44

exactly right, George. The technology on

58:46

cars has changed way faster than

58:48

the technology in homes. Now, homes

58:50

are much more technically savvy than

58:52

they were in the 1960s, for

58:55

sure. But the actual... roofing, it's

58:57

still asphalt shingles on most people's

58:59

houses, you know, and the actual

59:01

siting, it's still the same brick,

59:03

you know, and so there's not

59:05

been a lot of change in

59:08

the basic structure of a house

59:10

and cars have changed dramatically. So

59:12

cars are more akin to computers

59:14

than they are houses. They make

59:16

eight bazillion of them new every

59:19

year, and they're making computers faster

59:21

than we make people. And so

59:23

when you unbox a computer it

59:25

goes down in value because the

59:27

next one's going to be a

59:30

lot faster, a lot more technically

59:32

savvy, and there's no shortage of

59:34

them. No, I mean everybody in

59:36

his brother's got six of them,

59:38

you know, I mean, is there

59:40

a shortage of phones? Oh my

59:43

God, you can get a phone,

59:45

you know, the smartphone anywhere, anytime,

59:47

same thing. And so they've gone

59:49

up in cost, but mainly because

59:51

their technology has gone way up,

59:54

but a used one doesn't go

59:56

up in cost. Only the new

59:58

one same as with a car

1:00:00

so cars and computers are more

1:00:02

akin than cars and houses in

1:00:05

this philosophical discussion we're having on

1:00:07

appreciation of assets. And so that's

1:00:09

what you're looking at. The other

1:00:11

thing is houses can actually, if

1:00:13

you rent them out, create an

1:00:15

income. Cars, hypothetically, I guess you

1:00:18

could rent them out, but they

1:00:20

don't last long enough to be

1:00:22

rental property, so to speak. And

1:00:24

so you rent them out by

1:00:26

Uber driving, but that's a temporary

1:00:29

thing and you're running the wheels

1:00:31

off the thing. I think that's

1:00:33

probably the best answer is the

1:00:35

technology shift in the short. It's

1:00:37

mainly a commodity. Anytime you're dealing

1:00:40

with the commodity, you're dealing with

1:00:42

the price is not controlled by

1:00:44

the value that the thing creates.

1:00:46

The price is controlled by the

1:00:48

shortage or the scarcity or the

1:00:50

overabundance, the glut in the market.

1:00:53

And that's why things like gold

1:00:55

doesn't create money. The only thing

1:00:57

that drives gold prices is a

1:00:59

shortage You know coming up with

1:01:01

more or less Gold people chasing

1:01:04

the gold and so when there's

1:01:06

fear or greed gold goes up,

1:01:08

which it's happening right now I

1:01:10

see the billboards now for gold.

1:01:12

Yeah, when everything's real calm and

1:01:15

everybody thinks we're prosperous Gold goes

1:01:17

way down now the gold people

1:01:19

don't talk about that, but it

1:01:21

drops like way down And so,

1:01:23

but if it's, if everybody's afraid

1:01:25

or everybody's greedy, they're going, oh

1:01:28

look at the price of gold,

1:01:30

oh, wow, when they start hyping

1:01:32

it up and it's called Dave

1:01:34

Ramsey Crazy because he says don't

1:01:36

put money in gold. But I

1:01:39

don't have any, I can't judge

1:01:41

the value of gold because there

1:01:43

is no inherent value in gold.

1:01:45

Gold doesn't have value, gemstones don't

1:01:47

have value. It's just a rock.

1:01:50

The only thing that gives it

1:01:52

value is there's more people chasing

1:01:54

it than there is supply. People

1:01:56

willing to pay for it. Yeah.

1:01:58

And so the other thing that

1:02:00

comes into my mind, it's an

1:02:03

interesting question. Thanks for letting it.

1:02:05

letting us riff on that a

1:02:07

little bit Randy. The other thing

1:02:09

that comes to mind is I

1:02:11

remember going through appraisal class when

1:02:14

I was getting my real estate

1:02:16

license at 18 years old. One

1:02:18

of the things they teach you

1:02:20

to pass a real estate test,

1:02:22

it's one of the questions back

1:02:25

then, was what's the definition of

1:02:27

market value of a house, piece

1:02:29

of real estate in general, is

1:02:31

what a willing buyer will pay.

1:02:33

to a willing seller where neither

1:02:35

is under duress. And so if

1:02:38

you're not, you know, if you're

1:02:40

getting foreclosed on, you're under duress.

1:02:42

So that's not a market value.

1:02:44

When you buy a foreclosure, you

1:02:46

don't establish market value. Okay, so

1:02:49

that's a desperate situation. There's one

1:02:51

of them's under duress. And if

1:02:53

there's a shortage of housing and

1:02:55

there's 83 offers coming in on

1:02:57

the weekend. That's really not established

1:03:00

like you know remember the post-covid

1:03:02

stuff when people lost their dad

1:03:04

gum mines on houses right and

1:03:06

But that didn't establish real market

1:03:08

value because there was duress on

1:03:10

the part of the buyer Because

1:03:13

we're like oh I've got to

1:03:15

up it I've got to up

1:03:17

it. It's like an auction. It's

1:03:19

like eBay. You keep holding your

1:03:21

paddle up. Yeah, like an auction

1:03:24

and you kept running the price

1:03:26

up all weekend and you're paying

1:03:28

you know considerably more than asking

1:03:30

price you get in a bidding

1:03:32

war for house that's that's not

1:03:34

market value because one of the

1:03:37

parties is under duress and so

1:03:39

the definition of market value in

1:03:41

real estate is what and it

1:03:43

really should be probably for anything

1:03:45

is what would a willing buyer

1:03:48

give a willing seller where there

1:03:50

is no where neither party is

1:03:52

under duress and you know I

1:03:54

think about like I bought the

1:03:56

Raptor R Okay, which is the

1:03:59

one with the 700 horsepower monster

1:04:01

engine at it. It's a beast.

1:04:03

It's a beast. And it's a

1:04:05

it's a serious upgrade on the

1:04:07

Raptor package. And they didn't make

1:04:09

many of them. Scaresity. And so

1:04:12

the dealer price was X, but

1:04:14

the dealers were selling them for

1:04:16

X plus $25,000. Because of the

1:04:18

demand for them. Because there was

1:04:20

just a handful of them being

1:04:23

made and people, and more than

1:04:25

a handful of people wanting them.

1:04:27

So again, a shortage of the

1:04:29

good drove the price up. And

1:04:31

that's what that's the, the car's

1:04:34

not worth more because there's a

1:04:36

shortage. Because there's a shortage. Just

1:04:38

the shortage drove the price up.

1:04:40

That's all it is and so

1:04:42

you can do that with other

1:04:44

cars There's been I mean the

1:04:47

Corvette when they come out with

1:04:49

some of the specialty additions and

1:04:51

different things There's a very that

1:04:53

there's not many of them And

1:04:55

so you know the car guys

1:04:58

gals run down there to get

1:05:00

one and as long as there's

1:05:02

an abundance of the thing though

1:05:04

The price goes down on all

1:05:06

of them that have wheels and

1:05:09

motors and so that's what we're

1:05:11

looking at. That's a cool question

1:05:13

Randy Interesting. What made you think

1:05:15

there Dave? Yeah, stretch your brain

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1:07:46

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1:07:49

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1:07:51

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1:07:53

Friday from one to four central time.

1:07:55

There's free homemade cookies and coffee and

1:07:57

there's usually 50... to a couple hundred

1:07:59

people sitting out here. At this moment

1:08:01

there's several hundred out here because on

1:08:04

that debt-free stage is a very special

1:08:06

debt-free scream. One of our own from

1:08:08

Ramsey Solutions. Rick Prawl is here with

1:08:10

his wife Ellen or Helene? Helene. Helene.

1:08:12

Thank you. I knew that but I

1:08:14

wanted to make sure I got it

1:08:16

right. So hey, welcome guys. Congratulations. I'm

1:08:18

so proud of y'all. Hey Dave, hey

1:08:21

George. Hey, thank you. We can't ask

1:08:23

you what your income is because all

1:08:25

your co-workers are standing around. Hashtag awkward.

1:08:27

Yeah. Yeah, but but we will ask

1:08:29

you everything else. How much debt have

1:08:31

you paid off? $326,000 in nine years.

1:08:33

In nine years. And I assume that

1:08:36

means you people are weird and you

1:08:38

paid off your house. We are weird.

1:08:40

That's right. That's right. That's the house.

1:08:42

Congratulations. Congratulations. Well done. Well done. I'm

1:08:44

so proud. I'm so proud. Now do

1:08:46

you want to go further in this

1:08:48

or do you want me to leave

1:08:51

it alone? Because you told me some

1:08:53

stuff the other day in the hall

1:08:55

if I remember. I did. Actually our

1:08:57

story started 29 years ago when a

1:08:59

co-worker introduced me to the money game

1:09:01

on WTO. So I started listening 29

1:09:03

years ago this month. Wow. And Halene

1:09:05

and I actually came to one of

1:09:08

the Brentwood Hotel seminars where you were

1:09:10

there with your overhead projector. Wow. So

1:09:12

it actually changed the trajectory of our

1:09:14

life, which was very cool financially, but

1:09:16

a lot of folks will say, then

1:09:18

why did it take you 29 years

1:09:20

to get here? Because we were the

1:09:23

poster children for Davis. We knocked out

1:09:25

the first two baby steps and then

1:09:27

I thought I might have a better

1:09:29

plan. and we tried to do three

1:09:31

four and five all the same time

1:09:33

and it was a train wreck and

1:09:35

it didn't work and then you came

1:09:38

to work here 11 years ago and

1:09:40

once you come to work here 11

1:09:42

years ago then what happened we keep

1:09:44

doing ish we got no we got

1:09:46

serious I was okay teach an F-U

1:09:48

trying to fill out the baby step

1:09:50

three emergency funds so I was actually

1:09:52

cleaning headlights on cars actually did Georgia's

1:09:55

right for about two years you did

1:09:57

a great job on that's right that

1:09:59

old Chevy Cobol that's right made her

1:10:01

look real brand new and then we

1:10:03

just we got serious and in addition

1:10:05

to just a regular mortgage payment anything

1:10:07

that we got extra profit sharing any

1:10:10

extra money that came in got funneled

1:10:12

directly to extra principal payment. So wow.

1:10:14

So Rick is one of our product

1:10:16

writers. He's been doing content here and

1:10:18

helping with ad copy and other things

1:10:20

and writing the product scripts and so

1:10:22

forth for 11 years. Working with all

1:10:25

you guys on all the books that

1:10:27

come out. So it's I don't know

1:10:29

what I would have done without you

1:10:31

Rick on breaking free from broke. You

1:10:33

are a savant at what you do.

1:10:35

We're grateful. that definitely helped us with

1:10:37

that as well. So you're an incredible

1:10:39

incredible team member. Thank you. So we've

1:10:42

enjoyed it. She feels like you've been

1:10:44

here longer than 11 years. I don't

1:10:46

know. Sometimes it feels like it and

1:10:48

sometimes it doesn't. It's an eternity Dave.

1:10:50

I don't mean that way. I mean

1:10:52

it's just it's it's it just feels

1:10:54

like you've been with us. You're part

1:10:57

of this place. You're part of who

1:10:59

we are. Yeah. So we love you

1:11:01

all. I'm so proud of you. I'm

1:11:03

so proud of you. I'm so proud

1:11:05

of you. I'm so proud of you.

1:11:07

I'm so proud of you. I'm so

1:11:09

proud of you. I'm so proud of

1:11:12

you. I'm so proud of you. I'm

1:11:14

so proud of you. I'm so proud

1:11:16

of you. I'm so proud of you.

1:11:18

I'm so proud of you. I'm so

1:11:20

proud of you. I'm so proud of

1:11:22

you. I'm so proud of you. I'm

1:11:24

so proud of you. I'm It's yeah,

1:11:27

it's it's incredible the first month. So

1:11:29

we paid it off exactly nine years

1:11:31

To the day. I was shooting for

1:11:33

that seven-year plan that we talk about

1:11:35

But then the market dip in 20

1:11:37

and 21 happened and then we had

1:11:39

to replace two vehicles in January of

1:11:41

23 And so then we had to

1:11:44

rebuild the emergency fund. So it was

1:11:46

it was a challenge, but life happened.

1:11:48

That's right. So February was a big

1:11:50

deal celebrated 11 years here paid off

1:11:52

the house and became net worth millionaires

1:11:54

all the same time. Wow! Baby Steps

1:11:56

Millionaires. That's what you were telling me

1:11:59

at the elevator, but I wasn't going

1:12:01

to bring that up unless you did.

1:12:03

That's right. So we're excited. So proud

1:12:05

of you. Baby Steps Millionaires and content

1:12:07

and product, principal product writer is his

1:12:09

technical title, but it's helping us with

1:12:11

all kinds of content now for over

1:12:14

a decade. And yeah, it's harder. right

1:12:16

about this stuff and not go do

1:12:18

it. Exactly. Yes. Yep. We've we just

1:12:20

finished another FPU class three weeks ago.

1:12:22

I think I've taught 14 15 now

1:12:24

that we've been here. Wow. And that's

1:12:26

good accountability over the years. Well, keep

1:12:28

you on the plan. I've discovered. Yeah,

1:12:31

and Helene has discovered that that that

1:12:33

that helps us stick to the budget

1:12:35

when I'm actually teaching the class. The

1:12:37

months that we're not teaching the class

1:12:39

that tend to get a little sidewaysa

1:12:41

sideways a little sidewaysa. A little like

1:12:43

a days of days of days. That's

1:12:46

right. That's right. Not Helene, but you.

1:12:48

Yeah, Helene is the one that tries

1:12:50

to get me back on there. Right.

1:12:52

I love it. I got to ask

1:12:54

Rick, I know your personal life and

1:12:56

your heart for generosity and missions, was

1:12:58

that a why in this? Were there

1:13:01

other why as to why you guys

1:13:03

did this? I think for us was

1:13:05

just the idea of, as we've talked

1:13:07

about here, just not owing anybody anything.

1:13:09

And that, you know, the money that

1:13:11

I'm earning now is all ours. So

1:13:13

we took that first month's paycheck. Paycheck.

1:13:15

paid off the balance of a cruise

1:13:18

that we're doing in July. Also, we're

1:13:20

trying to use that, but yes, the

1:13:22

international mission trip is a big part

1:13:24

of that. I love it. You're in

1:13:26

your live like no one else, Sarah,

1:13:28

now. Exactly. And he taught FPU in

1:13:30

Greece on our international mission too. Wow.

1:13:33

Wow. We had several team members here

1:13:35

join us a couple years ago on

1:13:37

a trip to Athens, and we actually

1:13:39

got to teach financial principles to Ukrainian

1:13:41

and Syrian and Syrian refugees. Yeah, very

1:13:43

cool. So you're a good man. Well,

1:13:45

thank man. We're honored to have you

1:13:48

on the team and I'm so proud

1:13:50

that this stuff has worked to change

1:13:52

your old, some complete family tree, Baby

1:13:54

Steps Millionaires House and everything paid for.

1:13:56

and you brought the grandkids. Helene watches

1:13:58

three of the grandkids every day and

1:14:00

the two girls have been practicing with

1:14:02

us. So they are ready to go.

1:14:05

Well let's get them up here. I

1:14:07

want to hear some grandkids. This is

1:14:09

a family tree that's been changed in

1:14:11

so many ways. Oh they're so cute.

1:14:13

You got to be watching on YouTube

1:14:15

or Spotify video right now. It is

1:14:17

too precious. How cute are you? So

1:14:20

what are the names and ages? she's

1:14:22

three all right we've got Lincoln who's

1:14:24

one over here so okay so Lincoln's

1:14:26

gonna stay off to the side that's

1:14:28

a word good stuff just the innocent

1:14:30

bystander and both of our children are

1:14:32

debt well they have mortgage but other

1:14:35

than that they're debt free so they're

1:14:37

working on your family tree yep yeah

1:14:39

that was I don't know if you

1:14:41

remember 11 years ago when I started

1:14:43

Dave I started in January in February

1:14:45

and both of my kids got married

1:14:47

later that year six months later And

1:14:49

so we started off with two kids

1:14:52

getting married and going through FPU that

1:14:54

first year. Sounds expensive. No since I

1:14:56

had not had a job before that.

1:14:58

My daughter's budget was $5,000 so she

1:15:00

did great. That's incredible. Love it. Well

1:15:02

congratulations y'all. We love you. We're so

1:15:04

proud of you and the Ramsey team

1:15:07

is out here gathered around because they

1:15:09

love you as well and proud of

1:15:11

you too. So you set a good...

1:15:13

A pretty high bar for the rest

1:15:15

of the bunch. Oh yeah. We love

1:15:17

seeing our team members at Baby Step

1:15:19

7. We celebrate the big around here.

1:15:22

I love seeing our team members be

1:15:24

millionaires. That's pretty stinking cool right there,

1:15:26

man. That's awesome. So cool stuff. All

1:15:28

right, Rick and Elaine from Lebanon, Tennessee.

1:15:30

Ramsey team member for 11 years house

1:15:32

and everything paid off three hundred and

1:15:34

twenty six thousand dollars in the last

1:15:36

nine years and that makes them baby

1:15:39

steps millionaires among other things great job

1:15:41

you guys count it down girls are

1:15:43

you ready three two three we're dead

1:15:45

free we're dead free yeah We don't

1:15:47

get many cuteness in the grandkids. Oh

1:15:49

yeah. That's a new, that's good. I

1:15:51

like this might have been a first

1:15:54

for me. Yeah, bring cute grandkids. That's

1:15:56

good. I like that. And yeah, that's

1:15:58

great, man. How fun. I like seeing

1:16:00

good people win. Well, and I gotta

1:16:02

tell you, as the owner of this

1:16:04

place to have people on our team

1:16:06

being able to. become wealthy because while

1:16:09

they work here doing the stuff that

1:16:11

we teach it makes me it makes

1:16:13

me weepy man. I mean believe in

1:16:15

the mission still teaching FPU 14 15

1:16:17

times over now I mean this guy's

1:16:19

he's hardcore that's rare that's rare that's

1:16:21

rare we're breathing over here when he

1:16:23

writes we're breathing over here when he

1:16:26

writes something we don't have to worry

1:16:28

about what was written we know exactly

1:16:30

what was written and because it's right

1:16:32

online with all the things you teach

1:16:34

I teach and the things Very very

1:16:36

cool stuff. Good job you guys your

1:16:38

heroes man. We're so proud of you

1:16:41

proud to have you here proud to

1:16:43

have you on the stage and proud

1:16:45

to look at those cute kids They're

1:16:47

really cute. I know I mean Rick's

1:16:49

a good-looking guy, but goodness gracious. There's

1:16:51

no explanation in him looking at them

1:16:53

none whatsoever I love it. That's a

1:16:56

fun fun guys. This is the Ramsey

1:16:58

show Real

1:17:41

change in your money and relationships

1:17:43

is possible. You can break the

1:17:45

cycles that have kept you from

1:17:48

moving forward. You can build a

1:17:50

better future for yourself and it

1:17:52

starts here. Hang out with Dr.

1:17:54

John Deloni and I live in

1:17:56

a city near you for the

1:17:59

Money and Relationships Tour. Starting next

1:18:01

week, we'll be... Louisville, Durham, Atlanta,

1:18:03

Phoenix, Fort Worth, and Kansas City.

1:18:05

Time is running out, so grab

1:18:07

your tickets while you can at

1:18:10

Ramsey solutions.com/tour. Welcome

1:18:31

back to the Ramsey show. I'm

1:18:34

Dave Ramsey your host George Camel

1:18:36

Ramsey personality number one best-selling author

1:18:38

is my co-host today Troy is

1:18:40

in Tampa Florida. Hey Troy welcome

1:18:43

to the Ramsey show. Hey good

1:18:45

afternoon Dave. Hey George quick question

1:18:47

about retirement 56 years old currently

1:18:49

working baby step two only have

1:18:52

about 70 80 thousand in our

1:18:54

retirement fund and wondering if we

1:18:56

should at least contribute up to

1:18:58

the employee match before we get

1:19:01

to the end of baby steps,

1:19:03

which is baby step two, which

1:19:05

will be in about two and

1:19:07

a half years. What do you

1:19:10

owe on your consumer debt that's

1:19:12

going to take two and a

1:19:14

half years? About 70,000? On what?

1:19:16

Personal loans, stemming from... We had

1:19:19

some repairs from Hurricane Ian that

1:19:21

insurance didn't cover. We just had

1:19:23

those put in place. I have

1:19:25

a student loan that we're wrapping

1:19:28

up and a car payment. What's

1:19:30

your car worth? About $18,000. Okay.

1:19:32

And what do you owe on

1:19:34

it? $18,000. About 70,000 okay, we've

1:19:37

already paid off about $12,000. Good,

1:19:39

and what's your household income? 110.

1:19:41

Okay, all right. And you said

1:19:43

you're how old one more time?

1:19:46

56. Okay. You don't need to

1:19:48

panic, you just need to do

1:19:50

this. And it shouldn't take you

1:19:52

two and a half years, you

1:19:55

need to sell the car. I

1:19:57

would pick up extra income somewhere

1:19:59

and I would look at what

1:20:01

I can sell. and get this

1:20:04

cleared off and I'm gonna live

1:20:06

on nothing. Beans and rice, rice

1:20:08

and beans, no eating out, no

1:20:10

vacations, no nothing. You've got to

1:20:13

get busy because you've got to

1:20:15

clear this so that you can

1:20:17

lean in hard on the 15%

1:20:19

because if you start at 58

1:20:22

and you go to 68 with

1:20:24

15% of your income you're gonna

1:20:26

be okay. Okay. And in the

1:20:28

meantime get your house paid off

1:20:31

too during that same decade. So

1:20:33

you go into your early 70s

1:20:35

still investing and with a paid-for

1:20:37

house, your math is going to

1:20:40

be fine. You're not going to

1:20:42

be eating dog food. I mean,

1:20:44

you're not going to be a

1:20:46

multi-millionaire, but you can make it

1:20:49

with this. And the fastest way

1:20:51

mathematically to make it is to

1:20:53

not screw around with this debt,

1:20:55

is to pour everything on it,

1:20:58

not change the baby steps. It

1:21:00

gets you there faster. And the

1:21:02

power focus and the little bit

1:21:05

of fear... or a desperation that

1:21:07

makes you say I want to

1:21:09

change the steps, I would use

1:21:11

that as my motivation to even

1:21:14

sacrifice deeper and work more. Okay.

1:21:16

Yeah, let's just, yeah, let's just

1:21:18

clear this stuff. And if you're

1:21:20

going to keep the car, you're

1:21:23

going to work like a maniac

1:21:25

because you need to be done

1:21:27

in about 18 months here. Do

1:21:29

you guys have anything in savings?

1:21:32

Just emergency fund and... How much?

1:21:34

We have a thousand dollars for

1:21:36

that and then I escrow my

1:21:38

own homeowners insurance and tax. Yeah,

1:21:41

you got to pay that. So

1:21:43

that's all, yeah, it's labeled, it's

1:21:45

set aside. So I think we're

1:21:47

budgeting right, we're doing the right

1:21:50

things, you know, it's just that

1:21:52

little fear factor, you know, do

1:21:54

I want to, I don't want

1:21:56

to leave any money on the

1:21:59

table, but yet again, I want

1:22:01

to get rid of this death.

1:22:03

Yeah, that's a fair question. And

1:22:05

I don't hear in the way

1:22:08

you're asking the question, any dysfunction.

1:22:10

I think it's just an intellectual

1:22:12

exercise and say it. I'm game

1:22:14

on. I'm game on. What's the

1:22:17

best way to play the game

1:22:19

at this way? And that's a

1:22:21

fair question. But I still think

1:22:23

the best way to play is

1:22:26

just straight through. What do you

1:22:28

think? Well, part of what got

1:22:30

us here, Troy, is doing too

1:22:32

many things at once and not

1:22:35

really focusing on anything. And my

1:22:37

worry is you keep doing that.

1:22:39

for the next five to ten

1:22:41

years instead of just getting aggressive

1:22:44

like Dave mentioned and I crunched

1:22:46

the numbers for you here with

1:22:48

our investment calculator if you waited

1:22:50

till 58 and you started dumping

1:22:53

that 15% of that hundred ten

1:22:55

thousand dollar income you'd have a

1:22:57

million bucks but you're gonna have

1:22:59

to work into your early seven

1:23:02

no match but you're gonna have

1:23:04

to work into your early seven

1:23:06

no match and no raises that's

1:23:08

nothing no match no raise you

1:23:11

just keep that exactly make a

1:23:13

million dollars and so you will

1:23:15

have a million but you have

1:23:17

a million but you have a

1:23:20

million but For a late start

1:23:22

to still have a million bucks,

1:23:24

that's a pretty good life. You

1:23:26

said 73, I said 68. That's

1:23:29

where I said, yeah. He's gonna

1:23:31

have to work a little longer

1:23:33

to hit that. That's not like

1:23:35

a magic number that allows you

1:23:38

to retire or not, but just

1:23:40

a good ballpark to go. Well,

1:23:42

the thing is, with match and

1:23:44

with raises, he might get there

1:23:47

by 68, I might be wrong.

1:23:49

Yeah. I didn't think of that.

1:23:51

And get the house and start

1:23:53

dumping even more on the house.

1:23:56

And that's when you can afford

1:23:58

to look out and they're quite

1:24:00

looking over your shoulder. You know,

1:24:02

and the fastest way to get

1:24:05

there is to work the baby

1:24:07

steps. But baby step two, man,

1:24:09

it's just unbelievable intensity. Unbelievable sacrifice.

1:24:11

And truthfully, that getting completely strange

1:24:14

and weird is a lot easier.

1:24:16

26th than it is at 56.

1:24:18

I mean, it's just, I'm 64.

1:24:20

If I had to do that

1:24:23

right this second, it would be

1:24:25

very, very unpleasant. If Dave was

1:24:27

out here delivering pizzas. They'd be

1:24:29

a very unpleasant. They'd be a

1:24:32

very unpleasant. I don't want him

1:24:34

showing up my door. It's all

1:24:36

I'm saying. Hey, hey, hey. Yes,

1:24:38

you do. I would actually love

1:24:41

that. We should do that like

1:24:43

an undercover. Because you're a good

1:24:45

tipper. I'd give him a copy

1:24:47

of total money makeover as well.

1:24:50

If I show up as your

1:24:52

Uber driver with some strange sunglasses.

1:24:54

Can we do that as a

1:24:56

gag? Like an undercover boss situation?

1:24:59

Do as a gag. Undercover baby

1:25:01

step tour? I want to get

1:25:03

one of those advisor hats that

1:25:05

has hair sticking out of it.

1:25:08

You know, those hats. That would

1:25:10

be a great disguise. Bubba. If

1:25:12

I see Dave with hair, I

1:25:14

go that ain't Dave. He's going

1:25:17

to show up here. That ain't

1:25:19

Dave, that might be his brother.

1:25:21

Oh my goodness. Evie, he's my

1:25:23

brother. All right, anyway, Sasha's in

1:25:26

Manchester, New Hampshire. Save us from

1:25:28

ourselves. Sasha, how can we help?

1:25:30

How are you doing? Today, Dave?

1:25:32

Better than I deserve. How are

1:25:35

you? How are you? I deserve,

1:25:37

how are you? Two or three

1:25:39

months. Thank you. So here's the

1:25:41

deal. Oh yeah, you're very welcome.

1:25:44

I actually am trying to go

1:25:46

by your seven baby steps and

1:25:48

I have a little bit of

1:25:50

a unique situation. I'm a 43

1:25:53

year old woman out of Manchester,

1:25:55

New Hampshire who lost her husband

1:25:57

January 1st, 2024. I'm sorry. Thank

1:26:00

you. And I'm trying to figure

1:26:02

out the seven baby steps and

1:26:04

my problem is my husband took

1:26:06

out three different credit cards, one

1:26:09

took her credit one, one's for

1:26:11

a four-teba which is... discount for

1:26:13

not sure. Did they have your

1:26:15

name on them? Yeah they all

1:26:18

do both our names are on

1:26:20

them. He was trying to increase

1:26:22

my credit so I could get...

1:26:24

Before I run out of time,

1:26:27

ask me a question right quick.

1:26:29

Yeah I have $2,9.14 in debt.

1:26:31

Between all three credit cards and

1:26:33

two of them I know are

1:26:36

in collections and written off, do

1:26:38

I still have to pay them?

1:26:40

Yes. They have to be paid

1:26:42

or if they're written off you

1:26:45

can settle with them for over

1:26:47

them a lower amount. If you

1:26:49

do that, two things get it

1:26:51

in writing before you give them

1:26:54

any money and do not give

1:26:56

them electronic access to your checking

1:26:58

account. So you cut them. You

1:27:00

send them a money order, you

1:27:03

send them a wire, you give

1:27:05

them a prepaid debit card, something

1:27:07

like that, and you get it

1:27:09

in writing. And so let's say

1:27:12

one of them is $1,500 and

1:27:14

you have it, it's been written

1:27:16

off, then you got to do

1:27:18

that. So, you know, you settle

1:27:21

it, you got to get that

1:27:23

done. And so, you settle it

1:27:25

for pennies on the dollar. If

1:27:27

it's $1, $1, $1,000. you need

1:27:30

to, you know, offer them 500

1:27:32

bucks settlement in full. Yeah, wow.

1:27:34

Yeah, okay. All right, yeah, so

1:27:36

anyway, get it in writing, no

1:27:39

electronic access to your checking account

1:27:41

under any circumstances. Thank you for

1:27:43

calling Dawn Dawn, and I hope

1:27:45

that helps you. Hey,

1:28:16

what are you are you still doing here?

1:28:18

You know know the rest of the of

1:28:20

happening on is happening right? So you gotta

1:28:23

jump over there to continue watching. You

1:28:25

can download it for free, just

1:28:27

go to your app store, type in

1:28:29

Ramsey You it's completely free, it and I'll

1:28:31

drop a link in the show notes

1:28:33

to make it easy for you. So

1:28:35

if you're watching on the app, you're

1:28:38

in luck. But if you're watching anywhere

1:28:40

else, this show is over for you.

1:28:42

So to the app easy let the fun

1:28:44

continue. watching on the app, you're Go on Go on now.

1:28:46

Don't make it weird. it weird. Okay, I got

1:28:48

I got nowhere to go, so you

1:28:50

need to go. go. Okay, bye-bye now. All right, this is

1:28:52

getting weird getting weird over there What do

1:28:55

we do? do?