20 Episode results for "Smartvestor"

Why Debt Isn't a High Priority When Expecting a Baby (Hour 2)

The Dave Ramsey Show

39:48 min | 1 year ago

Why Debt Isn't a High Priority When Expecting a Baby (Hour 2)

"Live from the headquarters of Ramsey solutions broadcasting from the dollar car rental studio. It's that Dave Ramsey show where debt is dumb, cash is king in the paid off home mortgage has taken the place of the BMW as the status symbol of choice. I am Dave Ramsey, your host. Thank you for joining us. Open phones at triple eight eight to five five two two five. That's triple eight eight to five five two two five. Nick is starting off this hour forests in Harrisburg, Pennsylvania. Hi, Nick, welcome to the Dave Ramsey show. Hi, dave. Thanks for taking my call. Sure. What's up my wife and I are baby steps four five and six, and we've been through FPU and immersed in your message and your guidance since January. So we're really loving the plan. My question today is, we've roll some of her old employer plans into an IRA. She went to a part time work status are end and the website that we invested in for the IRA's pretty complex. It's more of a full-blown best website, and I, you've said, you know, never investing things you don't understand. And I'm having a little difficulty and, and trying to navigate events, -ment mix there. And I fully understand my employees plane here where I work, and it's my and I'm trying to figure out a way that we can do the fifteen percent of household even. You know, were to working professionals, but I'm struggling with her. I r a contributions and things like that. I'm looking for some guidance there. Well, I. No. We use we use Smartvestor pros that we endorse and their people in your area that align with the plan and have the heart of a teacher. And if you're having trouble with managing the IRA where it is. You can just roll it one of those guys or gals, and you'll have somebody in your corner to teach you and show you what you're doing why you're doing it. And also help you set up your new IRA's and kids college funds and other stuff as well. Going forward for your baby. Step four and five stuff. So just click Smartvestor at daveramsey dot com. It'll bring down the list of Smartvestor pros. You probably heard me talk about that before. If you're if you're not getting what you want out of this website, you chose to do the investing through all, you got dues Rolla to someone where you can get some more, you know, more concierge type treatment where somebody's there, and that is the beauty that there is an interesting data out there, Nick that, that shows that even someone like me, who knows a lot about it. I have we all have a tendency to stay invested in down times and to stay invested it to, you know, in, in things that are working. Well, even if they're slow right now, when we have someone in our corner, showing us the data that and teaching us and innocence talking is off the ledge and so forth. When you don't have someone to give you that data and coach you through the process people's returns on their retirement accounts tend to go. Way down. And that's why we found a large percentage. It was seventy nine percent of the millionaires in our everyday, millionaire study said that they were using investment professionals and having someone in their corner. And it's not that they're magic or the guy that, you know, the, you know, my Smartvestor pro that handles my personal stuff is, is he that much smarter than me. No, he just deals with this stuff, every day, all day. It's all he does. It's his specialization, and I don't work on my own cars anymore. Either. Because when a raise the hood, it's a computer after reboot, the stupid thing, I don't even know how to work, it, it was an old car know how to turn it ranch on it. But I don't work on my own cars on DIY stew out. I don't work on my own computers. I don't know how and I bring in an expert, I don't pull my own teeth. You know, I have an expert do that, not that I've had any pooled yet. Thank you, Lord. But anyway, I wouldn't blow my own. And I got a perfectly good pair of pliers in the garage. I could probably pull it off. But that doesn't mean it's a good idea. And so- DIY ING some things make sense. But investments are and real estate or not two of those things that there's tons of actual research that shows you make more when a pros in your corner. So that's why we're very comfortable is very consistent message having the smart the network of Smartvestor pros out there for you folks to pick from. Jonathan's with us in San Francisco. I Jonathan welcomed the Dave Ramsey show. Hey, how you doing today? Better than I deserve. What's up? Well, sir. Call today with a quick question. My wife and I have, so just briefly, she's got an opportunity to work closer to home. And we're trying to just tackle the situation seeing what's better fit for our new family. Understand. What's the problem? So right now, financially speaking, she's bringing about seventy five thousand a year. And with this new opportunity, we have she more than likely take a pay cut of anywhere from sixty sixty five thousand a year. She currently commute's about an hour and a half daily in this one direction. So she's a financial manager at and there's no financial managers closer than an hour and a half away. Why no girl, would you take a sixty five. That's a ninety percent. Pay cut between sixteen sixty five thousand for the nearest one in town and the nearest. So for the position, she works so convinced if you say she makes seventy five now and she'd be making sixty five at the new place. Yes. At all that you got to pay cut a sixty five thousand I was going to go down to and I'm like good lowered. Okay. Well, she king. I didn't know what was going on. Okay. Catch I'm catching on now. So a ten thousand dollar pay cut. But is she in a position where she's going to grow a book of business in her pay? We'll come back overtime. So there is a potential for things like bonuses and you know, raises throughout the years if she sees the company, we're just more concerned with the budgeting aspect obviously, it's going to miss their numbers right now. And. You're, you're, you're probably spending almost of the difference in an hour and a half drive every day, it, we calculated out rough about three thousand a year. Just feel. That's not even considering maintenance things like that destruction of value of the car. Exactly. So this cars on down, like a rock. I mean it's ten grand for her to commute an hour and a half and just a mechanic standpoint. I mean being a fellow car lovers, like yourself, I hate seeing going down that road. So I'm just trying to see what we can possibly do. What you what your to are in regards to how? I would take the job. I 'cause I, I don't I think cash flow might tighten up a little bit more, but overall over the period of a year or two or three, you know, the transition of one car to another over time. And that kind of thing, you're, you're not losing money over a period of five years. Now, your cash, you see what I'm saying because you're, you're not experiencing cash-flow bite from your car going down in value from an hour and a half commute. But it is going down in value faster than it will be if she lives close to home, plus you'll have your wife back. Oh, yes, I'm taking definitely taken this job. I'm for a ten K pay cut and you've got the opportunity to work and do other stuff. And, you know, you could pick up an job, occasionally and fill in a whole lot of this. It's an share her income will come up that she's a better going to be a better person. Do not live in a car three hours a day. Oh, yes. I'm taking this job. Christians have an affordable incredible way to meet their overwhelming healthcare costs. It's Christian healthcare ministries. The original health cost sharing ministry, a Better Business Bureau accredited organization. C H members share to pay each other's medical bills. It's not insurance. It's Christians financially and spiritually supporting each other. It's what C H has done for over thirty five years. Learn more at C H ministries dot org. That's the H ministries dot org. Christian healthcare ministries is a proud sponsor of Dave Ramsey live events. Thanks for being with us, America with your here. Open phones at triple eight eight to five five two two five. Drew is in Cleveland, Ohio. Hi, drew. Welcome to the Dave Ramsey show. Hi, dave. Vicar taking my call. Sure. How can I help? Yeah. So I'm trying to figure out if they side hustle idea that I have is reasonable or not, my wife and I have been on baby. Step two for about two and a half years. We had some trouble getting track from awhile, because we were we got married to call Ben and finance is cross country move at the college medically. She's along the way. Finally, getting some good, traction few months at this point. We still wanna speed it up. But I'm gonna pass any no aren't really kind of the cap about income for where we are right now. I mean we're looking to change. We're trying to find some kind of a side hustle to help be stuff. And the I have come from a product and I worked on not long back. You had a family Pano around the PC, ninety five no longer usable instrument. So I converted it with fairly minimal input financially into a nice fairly nice desk. And now, I'm wondering is that something I can keep going and find other old news, Pano, people are just getting and turn that into furniture. But it's such an odd item that I'm trying to figure out how do I value at the market and figure out if this is something people will actually buy and how it's so how do I figure out how to get out to biased? What'd you do with the other one? The other one is currently in my office. Okay. People comment on it. Like what like it. They won't one. Yeah. I I've gotten a lot of a lot of comments on it people. Stop by my office just to take a look at it. 'cause they heard some word in the church. How long wanna take you to do? One do another one. It probably pays me depending on what I did with it, probably thirty to forty hours of work, so three to four weeks. Okay. And at another side hustle in three to four weeks, you'd make like couple thousand bucks. Usually. Right. Right. And according to my ex MRs one figured out his reasonable Cording ethnic whitebait, I could tell for two three thousand and where do you get that number? That's based on I've done and conversations. I've had with people who do other kinds of custom work woodworking. Although this is a little bit kind of side stepped from that. But it's based on just the cereal and the labor and things like that. Well, the good news is you don't have to decide to do one hundred of them, all you do decide to do one. True. So go do one and sell it improve your plan if you can spend thirty hours and you can make two thousand dollars and you love doing it. Yeah. That's an awesome side hustle. And that milk need to do twelve year. Right. Okay. And if you can find the market for twelve year to sell them, you don't want to you don't want twelve in your basement, though. So we're going to do one. And while you're working on it. You can't you can't you catalog the progress and sketch out what it's going to look like in the future and put pictures of yours in there. And you put all this on a website and, you know, you invite people to watch you redo this hoping that one of them is the buyer. That makes sense updated with daily pictures, or whatever on your Instagram account or on your Facebook account or wherever, you've got some followers, and deny understand that you are a musician at your church. I, I'm not actively musician that my coach I the vision, but couldn't me. I'm a pastor there. Oh, I see. Okay. Well, my guess is, is that these the people that would be interested in this as a desk have an interest in music. Agreed. Yeah. I think that's so where are we gonna find those worship pastors? Get a jump on a worship, pastor website and put out some of these, you know, put out. Hey, follow me on Instagram watch what I'm doing with this piano, turning it into a desk and other musicians. Other areas, any contact you've got there in any music genre. In the Cleveland area, Cleveland's got a pretty good music scene, obviously with rock and Roll Hall of fame is there. Right. And so that kind of stuff you can just poke around and some of these areas. But the trick is you want to open up the door to where some enough people know that this is going on that you can get his soul, by the time you finish it, and now you've started approve it, and then after you've sold three of them, as you finish them, you're going to get better at doing the work, but you also get better at finding the customer and digging up. And keeping this going. But, you know, you can try one. And if you can't sell it, you just got an extra desk in the basement until you find somebody to buy the thing. And you go to a different side hustle, because there's no market. You can't find. You can't anybody interested. You know. But if you've got people, you know, again, putting a picture of yours and say, hey, because I did this and everybody liked it. I'm doing this one. I'm going to not sell my family one. But I'm going to sell this one and just put it out there. And, you know, you can poke around on at sea on EBay on doesn't cost anything on any of these things, Instagram, Facebook and just let people out there, you know, search and find this thing and track your progress, and then hopefully you'll have a buyer for when you're done going. Put a price on it on the completed product. Thanks for the call. Regina is in Pittsburgh. Hi, regina. Welcome to the Dave Ramsey show. Hi, good afternoon. Thank you for having me. Sure. How can I help high? I had a question. My, my children. Our look, I'm looking to put my children in a Sarabi program. It is an alternative treatment for like hyperactive behavior. And it is kind of expensive and based on my income, my husband and I are just kind of struggling with doing what's right for our children. And obviously trying to say in within a budget and mindful for trying to work our way through baby. Step number two. About seventy thousand. On what we owe fifty five on our house and about twenty on our car, okay? So not much. Yeah. Much other than what your household income fifty five? Okay. And what does this therapy cost about five thousand child, how many children to at least two one time or ongoing? It's a long term. It's it depends on how they progress. But my understanding it's going to be about six months, at least five thousand dollars a year. We haven't quite got down to all the in the processes of it. My one son, we haven't even had tested yet. My I'm suspicious that he has Sealy disease. So before we enroll him in this for hyper-activity, we need to get him his health figured out. So we're just as activities got that could be nutrition based, and that's exactly where I just feel like our kit. Like I love my children. Dearly just trying to get to the bottom of all of their health problems has exhausted, our savings and every dime that we have, and it's just very hard when you wanna do is, you know, number one, this is going to all happen at one time, it's gonna be over time. And so you don't need ten thousand dollars today. If you were convinced the and you're not quite convinced yet, that this is the only possible thing or that this is the right timing with child. Number two, you're already convinced it's not the right timing for that. So now that gives you some wiggle room. And, and overall the overarching issues, give you a lot of reason to get your finances cleaned up so that you'll have the cash flow to do this. So you're not working outside the home. He's bringing in fifty five. Is that what's happening? Okay. I'd probably saw twenty thousand dollar car. Well, we just bought it about a year ago. That's when we started. I don't care. Okay. A twenty thousand dollar problem. You got ten thousand dollar problem. Their kids. Okay. Let's more important, okay? It's in the way it's financially mathematically from an arithmetic standpoint in the way of you providing this, this treatment that you believe is right. Yeah. That's probably what I'm doing. And then works out hustles and figure out where you know, what staging and timelines we're looking at, and of course, confirm medically that this is the right way to go. This is the Dave Ramsey show. In the lobby of Ramsey solutions, Matt, and Michelle are, whether it's hey guys our. Yep. Dave welcome, welcome. Where are you from Columbus, Ohio and here to do a debt free scream absolutely love it? How much have you paid off two hundred sixty one thousand dollars. Wow. How long did that take it was a journey was five years? All right. And your range of income during that time. So when we started we were around one one fifty and we've pretty much doubled that as of last year. So all right. Nice income. What do you do for a living? We are real estate agents in the Columbus Ohio market, okay? For the Dave Ramsey show. Well, that's a double dip and you're killing it. Producers amazing great job. So what kind of debt was this two hundred sixty one thousand. Two hundred twenty of it was our mortgage, and then the rest was credit cards, car loan, a 4._0._1._K loan, which you're not supposed to do, right. All right. So I'm looking at where people real estate agents were paid for house. Yes. Absolutely. That's a touchdown. Yes. Doesn't happen. That's awesome way to co guys very cool. Okay. So how long have you been yell peas? This is our first year doing. Okay. Excellent good. So what happened five years ago that puts you on this journey? Well, I've always been pretty conservative. I used to work in retail for about twenty years. I've had my position position eliminated three times. So living paycheck to paycheck has always been something that I knew I didn't wanna do when we got serious, five years ago, I started looking around for Christian financial advice. And of course, your name came up, so we jumped in with the program, start listen to your podcasts, and reading your book, and from there to is he looked at how much we are paying an interest for everything that we had and just broke. I'm a numbers guy Dave. So I broke it down in every month between our mortgage, credit cards all that stuff. Eight hundred dollars a month was going towards interest, which you're just throwing that money away me. You know, struggling tied like I wanted to, but yet I have eight hundred dollars a month throw away for nothing that got me fired up. Not got me intense on the program got us fired up about the program and then watching that eight hundred dollars a month dwindle down to. Zero per month. Yeah, that's fun. That's an extra ten thousand dollars a year. Yeah. Yeah. And there's no value for that eight hundred dollars every month. I get nothing in return for eight hundred dollars. That was going out of our house every month. Says interest paid as a penalty interest received as a gift. That's good. Very good. You guys very fine. So when people pay off your house, what's your house worth real estate agents pretty into with about three fifty. Okay. Excellent. And you guys are amazing. Congratulations. And you're right. The house does feel different now that it's paid off. We paid it off in November of last year and just the laws and just walking around the carpet better. This is my floor now. It's my door. But that's. Feeling. I'm telling my stove. Yeah. Not ten percent of it. Not anything all thing. No. Yeah. There's, there's a and when you're in a business like you guys are in straight commission. Obviously, you don't worry about income. You've been making a good income for good period of time in that business. But when you're in that kind of business, something happens when you don't have to make money you end up making more, right? Absolutely. That's how we've doubled our income is not living paycheck to paycheck, we've been able to make career decisions based on what we wanted to do and what we were good at and not what we needed to do in order to pay a Bill to make payment law, people work a job that the only reason they, they work that job is I got to pay debt, yet, the borrowers slave to the lender and slaves. Don't have choices and so your career is going to continue to blossom well, why guys awesomeness? So what do you tell people the key to getting out of debt is have a plan? Like you say just have a monthly budget and. Stay focused thing. You have to get angry or upset or focused on one thing to just keep keep going because it's not easy. That's been the toughest thing just staying focused on track over five years. It's not a it's not a microwave planet crock pot planet. Five years is a long time to be on a program and do something show. Michelle. He says he's the number guy. He's the guy with the plan. This definitely the nerd definitely the fringe spirit. My right. Okay. So what is the free spirit site? What's the key to getting out of debt for you just stick on it? I mean if something's going to happen it as. Things happen as you go along the path. But you gotta get right back in it and keep going. Yeah. You're gonna get bumped knocked as you. It's not a straight line, not a straight line. Stay with the persistence part is what got it for you. Exactly. Good. Okay. So who were your biggest cheerleaders? Honestly, just each other. I mean, we are family supportive, our friends are supportive, but we didn't necessarily put it out there that we were doing this. It's just kind of something that we did together, and we focused on. So we're not overly you know, aside from the business aspect of it. We're not overly public people with doing so. Yeah, I mean they were super excited obviously, when they found out that we paid off our house, and that kind of thing, but what shocked. Exactly. Exactly. Well, done very well done. We got a copy of Chris Hogan's book for you every day millionaires puffing because that's definitely the trek your own. You're gonna be that's gonna be the next chapter in your story. For sure we're almost there, this fabulous income, and paid for three hundred fifty thousand dollar house yet. You've got a real headstart very cool well white ago, you guys and congratulations. And thanks for serving our listeners, zero piece, Matt and Michelle and your daughter's with you. Get in to help with the scream. I don't think so. Okay. Her name is what Caitlyn? All right. Caitlin cheering from over there that works Matt, and Michelle and Caitlyn. From Columbus, Ohio, do entered sixty one thousand dollars paid off in five years. That's their house and everything there. We're people. Yeah, that's it baby making them. One fifty up to three hundred countdown. Let's hear a debt free scream three. Where? MA LP team drops balloons on them from above excellent. Very good job, you guys. Very good job. That's how it's done. Wow. How fun is that you guys listen, you can do this. You can do this. It's very doable. And you go the side what you're willing to do to get there. That's simple. Britney is a member of the Ramsey baby steps community, which is our private Facebook group, the largest Facebook group for Ramsey discussions. And you're welcome to join Dave. I'm a new listener. I've heard you talk about putting the baby steps on old when you're pregnant, can you explain to me? Why? Yes. The health of the mother and the health of the baby is more important than they little amount of debt, you'll pay off during that nine months, you will put all of the money that you would have paid on the debt in savings during that time, and when baby and mommy come home from the hospital and everybody's healthy, and there is no issues that we need money for then you take the same exact amount of money you would have paid on the debt during that period of time, and you pay it on the debt and the only thing lost as a tiny bit of interest during that nine month period of time, and so in, but what you get in return as I pile of cash, which gives you some peace. In case there's a little bit of a hiccup and you need some kind of money, and I'd rather have a politics thousand dollars and ten thousand dollars less in. That during that nine months as an example. And if there's some kind of a little thing then you don't have a problem. I'm not suggesting you go redecorate the, the nursery with the money. I'm just saying if there was a bit of an emergency of some kind of round the pregnancy a bit of difficulty and you needed some money for the health of the mom of the child, you'd have it. If you paid it down with that. You don't have it. And guess what? That's going to be new death if that happened. So that's why we do that. Good question Britney, and thanks for being a member of the Ramsey baby. Steps community. This is the Dave Ramsey show. The oh was whether us in San Francisco, I the Owellry to the Dave Ramsey show. Hey, Dave, how's it going? Now very throw a question for you. I went babies hats one two and three and I don't know my money more. So I'm in my rock buyer as well as one K my company thrived plan and not sure what else I should be doing. Okay. Well, that's baby. Step four is fifteen percent of your income going into retirement. Is that much going into retirement? Okay. Are you single? Yes. Do you own a home? No. Okay. All right. Do you intend to? I'm not sure yet when I own a home ever. Yeah, I don't know. I haven't thought about that. Okay. How old are you? Twenty four. What do you make? Like ninety thousand good for you. Why go what do you do? At a company call it, though that comfy during wanna mation. Good for you. All right. Well, if I were in your shoes, basically, there's money is good for three things. It's good for enjoying. It's good for investing for the future, and it's good for generosity. And you're obviously in a position you've got a lot of margin. And so you ought to be doing all three of those things, I think leaving any one of those things out leaves people in jeopardy for their future and for who they're becoming. So I'd make sure I had a steady rhythm of generosity, a steady rhythm of investing. You're putting fifteen percent aside that and I'd be enjoying some of this money or twenty four you're making Bank. And you live in an expensive area. But, but the, you know, you still would be able to enjoy some of it as far as additional investing goes, you could simply start throwing some money in something like a no load S and P five hundred fund just to build to build up future house fund, 'cause I suspect that the next stages of your life that, you'll be, you know, by the time you're thirty five you know, you'll probably own a property, probably we have an interest in owning something you don't have to today. Hey, there's not an emergency, but over the scope of your life from now until ninety years old owning versus renting will come out ahead for you way ahead. And so you do want to be in an ownership position at some point, but there's no panic to do it today or next year or anything like that. So you start chunking some money aside. And if you looked up, you had four or five hundred thousand dollars in that account that wouldn't be a bad thing. Okay, do you recommend to like I dunno like ineffectual essential visor for like investing investing either. Yeah. We, we have folks that we send people to called Smartvestor pros. We're not in the investment business, but they agree with our philosophies of investing in our philosophies of handling money in the baby steps and all of that kind of thing. So you're gonna get consistent advised with what you hear here on the air. And if you just click Smartvestor at daveramsey dot com, you can sit down with a it'll drop down a list of the Smartvestor pros in your area and you select one and you pick and then you sit down and. The they'll start to coach you as you go alone. And you're in a position to really built some serious wealth. 'cause you're starting early. You're smart, and you make really good money gray is with us in Canada. I gray welcome to the Dave Ramsey show. Thanks for having sure. How can I help? Yeah. So the question so I left my dad shortly after the huge mistake cosigner is my mom is done for medical school for my brother, the next five six years. I was only money to my family, 'cause I was single giving money prioritize, my as what I feel to situations. So I got my two years ago, the cold priorities shifted, and I had a child, and, you know, we started planning for all family future, and two months ago, we bought a home, we making decent income. So now my family is demanding for money. Imagine for money or when I've told them, I don't have much because I just came off Matt leave a year ago, and I'm still with they're trying to get finances. They have a right to your money. Exactly I and I think it wasn't. It wasn't. It wasn't. It wasn't a passive aggressive statement. I'm curious whose parents or brother or sister think they have a right to your money to demand money from you. That's so strange. It is strange and it's led to mean collie and I'm just in my very toxic. And I have to into ties nice outage times. Mine needs. And I believe my brother. He is twenty nine medical school based on his cO co-signed on him. He's the money of money 'cause he mis-managed managed from back then my team. My dad died. I was very vulnerable. I understand what co-signing really meant. But I did it because I felt out of place to help them out. But now I'm left with no monthly payments that they're not keeping their own side of the bargain. So I wanna maintain a good credit and. In the morning, medical. Do two hundred and toys, he co-signed in Canada. And Canadian he went to school in the state. It was not how he planned it. It was meant to be less than that. But he gets today. You two hundred and twenty thousand dollars on your brother's medical school. All of us have. It's shared my brother myself, and my mom. Now I know much better now. I understand what is news to cosign. What what is responsibility really is? And I have to bear, the consequences of decisions, my made, but they keep asking and it's cost most of insults and visited myself, I don't know why. But they have I have to everything I have. School. He took it. We got a mess on the back graduate from Mexico. Yeah. Oh, yeah. He is he doctor. No. He isn't that because he's only the school extra funds, and I can't do anything about it. I like. He does the school money so they won't give him the diploma back. And now he wants to the myth more money, and I explained to him, now it has because I cannot avenues, he doesn't because Dr this year, he can try next. But we have to work in all he has to his nine hundred thirty everything's been given to him as time. But he has really had that sense of sensibility. Really work. Well, here's the problem. Okay. Your your family's toxic. And they have boundary issues without a doubt. They there's all kinds of just relational violations here in this. It's just so sad to listen to. So when people think they have a right to things that are over in your inside your boundaries. And then you put up a boundary and say, no, they almost always react with anger. People people who feel entitled, and you tell them that they're not, they're almost always reacted with anger and show. That's what happens when you put up a boundary. It's just standard process. So your this is not going to get better. It's gonna get worse. And there's probably going to be a huge blow up at some point. But that none of that means that you need to pay the money you don't I wouldn't pay a dime on the stuff I would let it sit over there. And rod. There's noth- no reason that you should have been on this loan. And there's no reason that you should pay it except that you now are legally obligated. And so you may have to go back and clean up something there at some point to get it off of your family. Your immediate family, not your brother and your mother. But this is silliness that they get to demand money from you. So you just need to be real quiet and real calm and real firm and just say, listen, I love you. And i'm. I'm just not going to be paying on this, and I'm not going to be sending you guys money. And I'll send you a copy Henry cloud's book boundaries. It is the, the consummate book on the subject, and he sold tens of millions of copies of this book, because every family, every relationship almost always has some kind of a boundary thing in it. And just learning to navigate that helps all of us with our relational I q r -bility to relate to others and healthy way and it's called growing up, and it sounds like your mom never did, so, hold on, send you a copy of that book and help you out. Puts this hour. Dave Ramsey show in the books. Hey guys, it's Blake Thompson, senior executive producer for the Dave Ramsey show. This hour's over, but you can find more great content. When are you to jail hedge? The most watch favoring deathly streams in the very popular everyday millionaire segment of the Dave Ramsey show. You to spry money isn't the only thing we talk about around hair get life-changing advice on your career for my good friend and career expert in Kalman. Oh my Ken Coleman show, seventy percent of Americans are going to work every Monday, and they don't want to be there. But for a myriad of reasons they feel they have to be there. That is our crusade. Subscribe to the Ken Coleman show wherever you listen to podcasts. Hey, it's James producer of the Dave Ramsey show. This episode is over. But check the episode notes for links to products and services. You've heard about during this episode. Thanks for listening.

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There Are No Shortcuts on the Path to Wealth (Hour 3)

The Dave Ramsey Show

39:42 min | 2 years ago

There Are No Shortcuts on the Path to Wealth (Hour 3)

"Live from. Ramsey solutions broadcasting from the dollar car rental videos. It's the Dave Ramsey show were debt is dumb cash is king and ate all own mortgage has taken the place of the BMW as the status symbol of choice. I'm Dave Ramsey. Your host you jump in. We'll talk about your life your money. It's a free call at triple eight eight to five five two two five that's triple eight eight to five five two two five. Rachel starts off this hour in Alexandria, Virginia. Hi, rachel. How are you? Hi, dave. Thank you for taking my call. Appreciate it. Not gonna help. My question is on five twenty nine. I have to Virginia five twenty nine account for my seven year old son. They total about ninety thousand one is a prepaid in the that has about fifty thousand and the other is an investment account with a balance about forty thousand enough to listening to you come to learn that both of this accounts. And not the preferred option, so I just wanted to get some advise on what I can do with this account and go for basis long as your stay within the five twenty nine umbrella, you won't have any tax problems. And so you can move at all in to what we would call a more traditional five twenty nine technically prepaids all of that is five twenty months. And so you just pick out some good mutual funds with your Smartvestor pro to fund a five twenty nine and you rolled you move the money. It's not technically a role, but you move the money from the. Prepaid and from the other into good mutual funds that are basic investment accounts that you're going to be able to get better returns on of course, as you know, I wouldn't add anything else to this. By the way. I think you got enough in there for a child that age and just let it grow from this point forward. So just click Smartvestor pro or click Smartvestor at daveramsey dot com. Select a Smartvestor pro that you'd like to work with a list of them will drop down when you get on the website, and you can choose which one you wanna sit down whether you sit down to three of them decide which one you wanna use. And then sit down they'll walk you through what technically has to happen with the tactical moves are the checks that have to be written the paperwork that has to be signed. And that kind of stuff to make it happen. But that's all very doable. And yeah, I would do that. Because prepaid college is about a seven percent rate of return, and you can do better than that in good mutual funds. And that's why I don't do prepaid college. One is in Tampa. Hi, Juan welcome to the Dave Ramsey show. How? Dave, how are you today? Better than I deserve. What's up? I'm so my wife, and I've been married for eight years we have five children within five years we've made a lot of bad financial decisions. And we find ourselves to the tune of about ninety seven grand in debt. So just about one hundred grand in debt, not including the house, and I wanna just follow the plan as it stated on the app path of least resistance guy right here, which is partially. Why I find myself in this predicament? But I just wanna follow the plan the way through and she seems to think that by maybe utilizing or taking money out of our 4._0._1._K to pay down a big chunk of this debt would help us get a good head start. And then essentially we'd be paying ourselves back. And I don't. Borrowing money on 4._0._1._K. Yes. Correct. All right. No. I would not do that. And the reasons are twofold number one when you leave your company, and you will leave your company when you die when you get a better job and quit or when they fire you one of those three things will cause you leisure leave your company when you leave your company if that loan is not been repaid. It is considered an early withdrawal. And you'll be taxed at your rate. Plus ten percent penalty on that amount. And I would never do that for that reason. Number two, you know, mutual funds are performing way better than you would be paying yourself. Here's the problem. The intrinsic problem in that question are in that suggestion is not even the tax. I just gave you the real reasons not to do a 4._0._1._K long. That's not really the problem problem is you guys got into debt looking for a shortcut to get stuff that you couldn't afford. Now, you're looking for a shortcut. To get out. And there's not one. I understand. That's the problem that you really have to the two of you together sit down and go, you know, what? We are not going to live our life as a life of shortcuts. We're going to live like no one else. So that later we can live and give like no one else, and that that's what's at the center of this. And I don't blame her. I would rather do something the easiest way to but it ends up. Here's the other thing that you can bring up, and you guys can talk through one of the things I've found I found this many years ago. The first time I've seen it in several studies since then but first time I saw it. It was just I opening to me that wealthy people when they are making decisions about purchases or money decisions have a planning window an analysis calendar window of ten or twenty years out. They ask themselves when I do this. Is it smart ten or twenty years out? Poor people that stay poor broke people the state poor have a planning window of Friday. Thank God is Friday. Oh god. It's monday. Does this feel good right now? In other words, and the question of, you know, borrowing on your 4._0._1._K is not quite Friday. But it's Christmas if feels better, but if you look out ten years it look better at all. It's a really dumb idea to have put your whole whole thing at risk on a thirty percent or forty percent hit at that rate. Now, you know, I can't make anybody do anything, and I don't try to. So your wife is is going to think what she's going to. Thank you guys are gonna do what you're going to do. But those are the reasons that I don't recommend using borrowed money on your 4._0._1._K number one. You're unplugging good investments at Mata major twelve and you're gonna pay yourself five or six in might have made more than twelve number to win. You leave your company if you have not paid the loan back. You have a huge mess because. You're gonna get hit with your tax rate plus ten percent. So that's probably thirty or forty percent hit on that money. It's like borrowing money at thirty percent interest. While you don't cash out your 4._0._1._K to pay off your debts. Number three. It's a sense of a shortcut. That's not real and just like going into debt in the first place was a shortcut to get stuff that wasn't real. And it causes you problems. Number four. It's short term thinking is a long term thinking and wealthy. People. Always use long term thinking, by the way, almost all long-term thinking has short term pain almost all short term thinking has long term pain and short term relief. And that's what this is short term relief with long term pain. And that's how you know. It's wrong. That's how you know. It's wrong way. Go and there's just no shortcut to any places worth going. So those four reasons that's why you don't do it. Now, you guys get sit down talk about whether you're gonna do it or not. This is the Dave Ramsey show. Stop blowing your budget on your wireless plan and switch to peer talk USA, pure talk. You I say offers simply smarter wireless. Unlimited plans start as low as twenty dollars per month. You never pay data over its fees, and we never turn off your data, no contracts, no hidden fees, and no surprise us. We're so confident you'll love pure talk USA that we invite you to try our service risk free. Visit pure talk USA dot com or call eight four four eight six to three six seven seven enter promo code Ramsey. And receive fifty percent off your first month. That's pure talk. USA dot com. You guys are amazing. Just tell you this blows my mind, we now have one million subscribers on YouTube and about twenty million downloads a month. Thank you guys. Wow. You tubes? A big deal. We knew it was a big deal. But this is big. I mean, a million subscribers to the Dave Ramsey show YouTube page, thank you. And and again, people are searching on YouTube for information, we've got tons of videos on their bazillions videos on there. And so they find this and twenty million views a month right now on YouTube. Thank you, absolutely amazing. Robert is in Arizona. Hey, Robert, welcome to the Dave Ramsey show. Hello, dave. Hey, what's up? Hey, thanks for taking my call. I need a sanity check. I'm sixty six my wife, sixty four. I'll be retiring this year. She's already retired. We own a home, basically dead free. We have a very small mortgage rental property on the mortgage pays or on the property pays the mortgage. I have two hundred and fifty thousand in my TSP account, and our retirement income is going to be around sixty thousand net with mine her social security, and my retirement I wanna do something with horses. Once I retire. I have an opportunity to purchase horse property that has in income potential on twenty acres already developed with twenty stalls and round Pange arenas and the whole nine yards water power for sale under market price person just wants to get out from under it. But in order to purchase it, I would need to deplete my 4._0._1._K, my TSP and take out a loan. For about two hundred thousand two. Yeah. If we did that and there was no income produce. Then of course, the mortgage would be about half, maybe a little more than monthly income. But the potential for income is there so might be completely foolish into even considering this. Okay. So the property the horse property, call show much property is about four fifty and you got to fifty in your TSP. Correct. And there's also a 4._0._1._K on top of that small one. But it's my wife, and it's got about thirty thousand in it. I. Suit an eighty dollars two hundred eighty thousand dollars to your name. Yes. Okay. And you said something about a rental property. Well, I have a small piece of property on my how in my house property, which pays the mortgage on our house. So we basically don't have any debt we've had a renter in their per year. So you have debt you just have a renter that pays the payment. Correct. It's basically not debt us, basically is dead so much. Do you have on the house we one hundred and fifty on the house our mortgage mortgages seven fifty a month? Oh, that's a lot. That's not a basically note is a lot of that. Okay. All right. And. Well, basically. Here we go to the word, basically, again, what what is occurring here is that your retirement is in pretty good shape. Your little heavy in debt on your house. You have a rental house on the same land as your personal residence. Yes. To smoke C two. Okay. And it rinse for seven hundred fifty a month. Correct. Okay. All right. If you don't do the horse thing at all. Then there's a, you know, the retirement is set pretty easy. You got you. You've Dowd yourself in. You're going to be okay. You know, you're you're going to be fine. If you do the horse thing, basically, what we're saying is that you're going to go in essence four hundred fifty thousand dollars in debt to open a business at sixty six years old with horses. Yes. Well, if you were twenty six or sixty six I would not tell you to go for and fifty thousand dollars in debt throw open a business. I don't tell people to go in debt to open businesses. And and that is the essence of what's going on here, you wanna mess with horses, and you can do it a lot cheaper than a half million dollars. There's a lot of ways to mess with horses. Obviously you can buy half horses. But we don't do that either. But that's how you turn. A large fortunate was small fortune. How do you how do you look at it as taking the spe- which is a liquid account and turning it into property, which generated, but but you didn't you didn't because you still got hundred fifty thousand dollar mortgage on your house, and you're going to be deeply in debt on this property. I mean, if you fall off one of those horses, your wife is in a mess. Okay. That's what I was looking for him. I was just way too much risk here. I think there's other ways to live your dream of messing with horses. Don't entail. Putting your entire fortunate risk and leaving your wife in a mess. If you off them one of them. I just I think this is it's just fraught with danger. You've you're just gotten excited about the horse idea is something you've always wanted to do. And I don't want to steal that from you. I would just do it in a way that was more wise than this. These numbers scare the credit me if this thing doesn't work. It's probably not gonna be kinda medium is probably either gonna completely tank 'cause something happens to you. And you're not able to work it with like, you think you're going to or it's going to do. Okay. And you're gonna be all right. It's probably not gonna be in the middle where it's just kind of a strain, and you just kind of back ache in wished you hadn't done it. It's probably going to be a disaster or it's probably gonna be okay. And it's the disaster side that scares me, why wouldn't do it? But. I don't think that means that you have to sit on your butt and not do the horse dream. Let's just find another way to do it that doesn't cost four hundred fifty grand and let's enter enter this arena with a little more gradual step, and I might take fifty or a hundred of your P and do something for cash and get some kind of a horse business started. If you wanna do that, maybe lease somebody's property, and you run the operation that will be a way to do it as an example. And you know, start you a little business in that area that kind of thing. But no, I think you're taking on think you're biting off a really big thing here. And I just I wouldn't do it. Thanks for the call. Caitlyn is with us in quarterlane, Idaho. Hi caitlyn. How are you? Well, they are you deserve. What's up? Okay. So my mother and father onus sixty acres about an hour north of us in my mom. Just informed us that just the twenty acres personally live on is worth one point two million. And I'm guessing that all that combined is going to be worth two million dollars. And that doesn't include their foundation business or their retirement or their investments, then they have not updated their will in over twenty years. And with a as you would say like powdered, but syndrome, I've really want them to not only updated, but kind of sit down with my siblings because I have two siblings and discuss eater how they would want us to split. This in case something happened to them or what their plan is. Because my husband, and I do not want to live that far north. Okay. So twenty or forty years or your. People to faith. Yes, they are. Okay. The way I would approach is through that lens, then and just say, you know, mom, dad, we've been studying this stuff and actually having a will and laying out a game plan is good stewardship. You're managing a lot of God's assets. I don't want you to do this. Because I want something I'm not trying to get on the list on. I'm not trying to get on Santa clauses. Good list here. That's not what I'm trying to do. But as your daughter, I want to things one is I want you to be good stewards and good managers. And you're not being because you haven't updated your will number two. You're setting us up as siblings to not get along. You're setting us up to have conflict because you've not been extremely clear with your will. And with conversations with us as to what you're what you want done with this stuff. I don't care mom what you want to do with this stuff. I just care that you tell us what you want done with this stuff. And that you put it down in the form of a will. And that's all you can have. That's a good conversation to have good luck with that. This is the Dave Ramsey show. Thought about sitting down one on one helping coach people through their money issues. Like you play you're driving along. And you try to answer the question before I do while. You're listening. Well, you might be a future coach you really might. And we have the best online program to prepare you to become an actual coach. Whether you're a CPA a teacher, a bus driver, a nurse. I don't care whatever your background is all you want to all I need to know is that you want to help people with this. You wanna serve people are coaching team is hosting a free information webinar this Thursday, March the twenty first at noon, if you registered today, you'll be entered to win free enrollment in the financial coach master training program will draw one out of the people that come to the webinar and no purchase necessary because women are free. And then somebody's going to go to the whole thing, free and one ounce. The winner at the webinars so you don't wanna miss out. So again moon this Thursday March the twenty first of free informational webinar. Register for the women are webinar text. The word coaching to thirty three seven eighty nine. That's coaching to thirty three seven eighty nine. Fill is in Chicago. Hi, phil. Welcome to the Dave Ramsey show. Dave, thanks for taking my call. Sure. I have a question regarding just stuff on my mom. She is about to lose her job on Friday. And we're just trying to figure out what the next steps for her should be. What does she make your? She makes forty five thousand a year. Where's she live? She moves in a apartment nine in one city. Geneva, illinois. So it's near Chicago. Okay. Okay. What you do for a living. She works as a right now. It's been a system to the team lead of a manager company for J P Morgan. Okay. How long has she been there? Twenty years Lou washy losing her job because they have eliminated her position. Okay. Yeah. How long has she known this? She has. Known that it was coming for probably about the last six seven months. We were kind of like, okay. Are they going to do anything? They're gonna move forward. And then they finally let her know about the re- weeks ago. And how many job leads us? She got right now. She is currently looking at I'm trying to help her find other work right now. So for seven months, she's known for three weeks. She'd known for sure and she's got no job leads. Yeah. She's been pretty busy with some other things. My dad. Certainly in the what your dad's what my dad's in a nursing home. And so she's been trying to also help take care of him and trying to take care of some other things. How old is she sixty two. Okay. All right. Her biggest problem is not the job market. Our biggest problem is she's been in the same place for twenty years, and this is broken her heart. It hurt her feelings. Made her feel like she's not, okay. And it shook her confidence, and the reason she's not gonna job leads as she's found about a bazillion reasons to not go look for job because she is scared to death of more rejection. Does that sound wrong? Is that I know that some of it is she doesn't have a ton in her tyrant fund. And she's just worried about trying to make it through. Debt didn't keep her from looking for a job and no money in a retirement fund innkeeper from looking for a job. Yeah. That's fair. Right. Those are reasons needs a job. And the reasons that our fear might be increased in this situation. And your dad's the nursing home. What's wrong with your dad? My dad has multiple sclerosis and seizure disorder. Wow. Yeah. So. This lady if she's not a nor if she's not scared. She's not a normal human being. Most of us would be scared. I'm losing job after twenty years. My husband has MS and his nursing home and has seizure disorders. And I don't have a lot for retirement, and I've got some debt. I'm scared to death if I'm her, and if you don't watch reasonable bringing this up is paralyzed her and steal her confidence. When she goes to look for a job, and she needs to have some confidence when you're going to get a job. You got to have a little swagger. You kinda got study. You know, like you guys need me bad because I'm the coolest thing ever. You know, not quite that bad. But you got to have a little of that. You can't go in with your head bowed down and go, oh, please got harming my world is coming to an end. That is not a good job interview technique. Right. Yeah. Okay. So I want you to go to Kim Coleman dot com to the Ken Coleman show that he has on sue free. Downloadable things. One is how to put together a resume and one is how to interview for a job, and we're going to have to take her back to her thirty year old self emotionally and duster off. She's got knocked down in the dirt. We got dander up duster off and get a close Preston getting the job market because she needs a job done. She. Yeah. And that's the big she she needs to be working on this like her life depends on it in and it's natural to draw back from this. And think that this is a bad thing, by the way, she since Chicago, and she makes forty five thousand dollars a year is not exactly like she was in a job that wasn't replaceable. She probably if we get her head on straight about this can go make more money than she used to make. She probably this is probably going to be a blessing at the end of the story. But that's going to be dependent upon how she holds her. Ed, the attitude of her chin going forward here. You know? And so it's very it's a decision. So she scared. She's got a lot of stuff piled on her. And the way you can help our best is to walk along beside her put your arm around her and whisper in her ear how great she is. And how she could go make sixty thousand a year. Let's go look for that. And get that right now. Mom by the end of next week. And go go to ten job interviews next week. There's a labor shortage of the type of thing. She does in Chicago right now. There's a labor shortage. There's a lack of people that have skills and character doing what she's doing right now is a lack of there's a hole in the market. We have negative unemployment in some areas, we have a surplus of jobs in most metro areas, especially in the type of thing you're talking about right here. And so she can land something and she'll probably get a raise. But she's going to have to decide that. That's our destiny not oh, I got knocked off the horse. I'll never ride again. No, no, no, get back on a better horse. That's got to be the answer. Here. You can do this weather and go to Ken site and download those two things start working through this start resetting the confidence and resetting your expectations. It's fix your resume and nail the interview two free. Downloadable things that can Komen dot com, and they're both very very valuable. They'll get you there. And. She can do this. I'm glad she's got you there in her corner to which burner ear that she's better than she feels like right now in the middle of fear. She is better than she feels like that's a truth. It's not hype open phones at triple eight eight to five five two two five. Show guys. What's the moral of the story? The moral story is when you get a seven month notice take it. Count on it. If you start hitting to me that I'm gonna be gone in seven months, I'm going to try to be gone in seven days. I'm going to help you with that. And I'm gonna go make more money to prove that you're stupid for eliminating my position. Oh might even go in business with you and compete with you. Gimme seven months notice. Hey, listen. You get that kind of notice you get your life in order to get things lined up. And you kick them people to the curb because they're about to do that to you treat new like commodity so act like one. This is the Dave Ramsey show. Proverbs nineteen twenty twenty one listen to advice and accept discipline. And at the end, you will be counted. Among the wise, many are the plans in a person's heart. But it is the Lord's purpose that prevails, my friend. John Maxwell says a leader is one. Who knows the way goes the way and shows the way. Mary is in Seattle. Hi, mary. Welcome to the Dave Ramsey show. Hi, Dave to get south to that are not deserved. On what you think about that settlement companies? In your social phone speak directly into it. I can't you. Okay. I've come back to you. When you can get to where you can talk. Okay. Sarah is in Rhode Island. Hi, sarah. Welcome to the Dave Ramsey show. Hi, dave. Thanks for taking my call today. Sure. So I'm calling because my church is looking to build on addition onto the side of our church building. And they're looking at possibly getting mortgage for it. And we do have enough money in the Bank to cover it. But they want to split half mortgage in half paying straight up in order to make people comfortable about having money in the Bank. How do I convince them to not going the way of debt, and how can I also help encourage people to give more because we're not we're having a pull money out of our investments every year in order to make our annual budget. We have about eighty somewhere between eighty and a hundred that regularly attend. What is your position in the church? I'm the administrative assistant pastor as well as the clerk and just a number as well. So. Do you think you'll be listened to? I think you would be probably. But are you a person do do you think your personal credibility that they will listen to? I certainly hope so part of my concern is that I've grown up around a lot of these people I'm twenty eight and a lot of them have known me since I was literally a baby. So I'm worried that some of them will see me as a child maybe not intentionally but to some degree you have to they have to have worked around you since she reporting you worked Ranji lately, you're obviously articulate you've the way you presented. This was very clear and very objective. And so, you know, you're carrying your weight, I can tell that. But if they hadn't been around, you they might not see that. So that could be a problem. Okay. That's a good answer. Well, there's a couple of things what kind of church what brand. We're seven Baptist. It's basically your normal Baptist. Go to church on Saturday and said. As status most of the time when I hear any version of Baptist. I hear bible believing evangelical. All right. Exactly. Yeah. Okay. Then that's a lens. We can use to make to to have a discussion. Okay. Here's what Larry Birkat used to say one hundred years ago. It feels like now when I heard him he said that oftentimes the influencers in the church elders. The deacons people sitting on the church board, our men and women in business and the church board sometimes looks like the chamber of commerce, and so it's a car dealer, a whole life agent of banker and the guy that owns a hardware store, and they all run businesses. And so the pastor who's a little bit intimidated by business listens to the business people and they make business decisions for the church through the lens of a business. Not through the lens of scripture. And that's a mistake. And so I would warn against that that you don't make you know, I actually sat on church board one time and had a guy look at me and yell at me across the table while I'm a banker, I know money. And I looked at the passer, and I said and Hayes the pastor, and he knows the bible. Which is why we're here, by the way banker boy. And so that meeting didn't go well, but anyway. This is why I don't serve on boards. But. Because I'm always, right? Anyway, you don't want to do that. Okay. But what the approach I would use Sipe pastor. I think is really important that you you pray about this. And think about how we're making this decision. And I know that you would never make a decision that wasn't biblical. Right. And I think you're going to have a hard time finding borrowed money in the bible ever mentioned, positively. It's not there. Every time borrowed money as mentioned in the bible. You're a fool, you're a slave. Curse. Oh, no man, any nothing, but a debt of love even Romans or some arguments, whether that actually means debt, but it just means relational debt. But but either way every time the word or the concept dead has mentioned all through scripture. It's negative. Right. So all the biblical indicators are don't do it. I'm past her. You don't do things you don't preach a sermon to make people feel good you preach, a sermon to help people align their lives with the truth of scripture, and sometimes that feels good and sometimes it's a little bit of an algae. If God is telling us to build this. He will give us the money. Oh, wait a minute. He already did. Right. So we we cash we should pay cash an eighty eighty people don't need to be in debt. Right, right. It's a good way up to him. Does the council meeting S P you about a year ago? And I couldn't quite kneel down yesterday now. So how can I go about world is reason? Yeah. Points. He he's not want. That information spread around there because that'll make these decisions ridiculously hard. Right, right. Yeah. It's hard for it's hard for church to have the whole church go through and then turn around to a building program and going debt. It's very difficult. Instead, what happens is actually if you take the whole congregation through giving we'll go up because people will get out of debt and get on a budget. And when they get out of that budget. They're giving goes up because people love Jesus don't. It's not that they don't give those they don't want to because they don't have any money broke people. Just don't give so simple. And so anyway, yeah, you can try that. And again, I think it's going to have a lot to do with. Whether you are banker Bob has more influence with pastor's ear. That's what it's gonna come down to. But Biblically speaking you cannot prove text this. You cannot come up with a bible reason that this is okay. There's not one I've been doing this thirty years, and I get hate mail all the time and people trying to prove it, and no one's ever been able to find a single verse in all of scripture. There's twenty six hundred verses in scripture dealing with money and possessions and one hundred percent of the debt. References are negative. There's not even one you can make a case with and you can't even go back and say, well, culturally, you can't can't do it. I mean, you've just gotta go. Okay. Where we do not. We're not even juggles. We don't believe the bible, and it's a literal form, that's what you just have to go and say that and if you say that then you can just do about anything you wanna do then. And so that allows you to go wherever you want to go, and that's what people do sometimes I understand that. But no, no, that's that's how I would approach it. And I will tell you that in my history and churches as a as a church member. Or is it board member or one of the leaders in lay leaders in the church? I have had this conversation and it sometimes productive, and it sometimes not. And so it's just the thing is be gentle and kind and don't cause. A big row. Don't cause big problems all that kind of stuff. You know, just sit down and. You know, be be don't damage relationships for the next twenty years based on one conversation. Like, I did with banker Bob there that didn't that didn't go. Well, and he still unlike me, and I kinda understand. So I get it. Well, basically, I tell people not to do what he does every. So it's okay. All right. That puts this hour that I've Ramsey show in the books. We back with you before you know it. In the meantime, remember there is ultimately only one way to financial peace, and that's to walk daily with the prince of peace rice Jesus. Thompson senior executive producer for the Dave Ramsey show. This hour is over, but you can find more great content. When are you to catch? The most watched daybreak debt-free screams in the very popular everyday millionaire second go to the Dave Ramsey show. You to channel scribe. Hey, guys, if you're looking for real world, leadership and business advice from the top minds in business. Check out our entreleadership podcast. Hey, folks can Coleman. Here would love to have you. Join us weekly as we dive into conversations with the top minds in leadership and take your business questions to help you grow yourself your team and your profits. Don't miss an episode subscribe to entree leadership where you listen to podcasts. Hey, it's James producer of the Dave Ramsey show. This episode is over the check the episode notes for links to products and services you've heard about during this episode. Thanks for listening.

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Dave's Guidelines for First-Time Home Buyers (Hour 2)

The Dave Ramsey Show

39:47 min | 2 years ago

Dave's Guidelines for First-Time Home Buyers (Hour 2)

"Live from the headquarters of Ramsey solutions. Broadcasting from the dollar car rental studios. It's the Dave Ramsey show. For dad is dumb, cash is king and the paid off home mortgage has taken the place of the end w as the status symbol of choice. I'm Dave Ramsey your host. Thank you for joining us. Open phones at triple eight eight to five five two two five that's triple eight eight to five five two two five. Nathan starts off this hour in Lexington. Kentucky a Nathan welcome to the Dave Ramsey show. Thanks for taking my call. I haven't question I'm on baby step two right now. And we should have our debts off by the end of that where I'm wondering if I should take the home Mickley line of credit on my own and rove it as a baby sit to also if it is less than half, your annual income. Okay. It is more. It's about eighty eighty thousand dollars and your household income is what fifty two five to five. Yeah. Put that baby step six, and what's the balance on your first mortgage? First mortgages, right at eighty four and in a house. Yeah. What's the property worth and one ninety? So you you have borrowed up to your eyeballs then. No, not yet. Do you owe one ninety out ninety four on it? And it's worth one ninety. Right at the two hundred Mark. Okay. And what is the interest rate on your first mortgage, and I won four point one five. Okay. At some point in the future. You may wanna look at refinancing enrolling these two together. You probably can't do that. Right now, you come out because you're upside down in the house, and I don't think you're gonna get a traditional mortgage at a four point one to five rate, which you probably could get a mortgage at that right on a fifteen year fixed. But I'm not sure you can with enough to pay off your second mortgage and your first mortgage and roll them enroll them together. So for now, I would just leave that sitting back there. Baby step six and in the future when you've got some equity if interest rates, you're still advantages, then I would look going ahead and refinancing and putting them together because you're gonna pay it's gonna take you awhile. This thing off and the terms and usually the interest rates on second mortgage is usually suck. And so you are gonna want to get rid of it. But it sits back there. Baby. Step six, clean up your little debts. The other stuff. Your student loans. Whatever else you've got Bilger -mergency funds start investing and then begin to work down to your baby. Step six Brian is with us in Tampa, Florida. Hey, brian. How are you? Are you doing Dave better than I deserve? What's up? Okay. So my wife's parents were killed in a car accident in October lower. Yeah. Both of them and her little brother actually years old. Gosh. Yeah. It's been a it's been a crazy crazy time, and we've started to receive some of the insurance money, and we expect to receive about four hundred fifty thousand dollars today. We've we've received a hundred and eighty and. We thought the wisest thing to do is to find an investment advisor and were graduates of FPU. And so we were committee with the Smartvestor pro program. So we found in in investment advisor through that program through the program, and we're talking to him, and he's made some recommendations on what we should do with the money that we've received so far, and I just wanted to run it by you and get your thoughts on it. So we have a hundred and eighty thousand dollars with wood in just start saving account right now, and he's recommending that we put twenty five thousand dollars more into our emergency fund. He is recommending that we put forty thousand into money market account for future home downpayment, and he's recommending that. We we we're going to have to buy a new car. That's another story, but I can tell you about if you want it's and he's recommending we put fifteen thousand towards the car, and then we invest one hundred thousand dollars in frontier asset management, which is a investment firm that invests they have strategies invest in a lot of different mutual funds. And so we selected a strategy that we think we might like through that investment company. And that's one hundred eighty thousand dollars, and you are not paying cash for your house y. So. We we don't have a house that we know. Would you said you were putting a down payment on a house and instead of paying cash for a house, you're putting the money mutual funds? Yes. Why? That's one question that I wanted to ask you this is what he has recommended not anymore. He's getting ready to get fired Well, I think that the idea is that. That's something that I've thought about a lot, and I don't really know the right answer. And so I think you're telling me the right answer. So. Why for your house? You went to financial peace university. Yeah. You pick. This is a horrible tragedy. But it's gonna give you the ability to pay cash for your home. What what what price range homework thinking about buying? Like two hundred fifty. Okay. In some of these other assets becoming to you. By the end of the year. I would just wait until I had the money and then for home, and because all the data that we have says the average millionaire pays off their home and all other debts, and remains debt free is one of the ways that you take four hundred and fifty thousand dollar event and turn it into four million over a couple of decades, but you get out of debt, and you stay out of debt. You've never heard me. One time say start investing beyond fifteen percent of your income going into baby step four until you're paid off. Right. Yep. I'm pretty consistent like for thirty years. So hold on. I'm gonna Kelly pick up. I wanna know who your Smartvestor pro is. So that he's not anymore. Open phones at triple eight eight to five five two two five you jump in. We'll talk about your life and your money. I'm not going to send you folks to people that don't give you advice. It's consistent with what we teach that would be hypocritical on my part. It would be like you coming to our website and me saying we take credit cards after telling you not to have credit cards and telling you to avoid debt, right? I'm not going to end you the people until you do stuff this inconsistent. What I say here. I don't need money that badly. There's a lot of people is a lot of stuff. You can disagree with me on you can not think that I'm right about something. That's fine. But you will never be able to find a place that you can catch me being inconsistent. We spend an ordinary time being consistent. It's a form of integrity. It's part of having integrity. So that's the deal. This is the Dave Ramsey show. Hey, business leaders. You know, what's smart going? Ziprecruiter dot com slash Dave to hire the right person to take your business to the next level. Ziprecruiter's powerful matching technology scans thousands of resumes to identify people with the right skills education and experience and actively invites them to apply to your job. So you get qualified candidates fast. Try ZipRecruiter for free at ZipRecruiter dot com slash Dave. Daniel is in Minneapolis. Daniel welcome to the Dave Ramsey show. Hi, thanks for your time. Talking to me. I I got to kind of quick questions for y'all try to make things here. I have starting to think about buying a house recently and doing research, I talked to a a loan officer into a realtor. And I I have that on cars, my only debt, and I generally just planning on getting that paid off as soon as possible and then saving up for payment. But we're just wondering if you thought it would make more sense to pay or to sell the car in order to help fund it. So that makes you debt free and gives you a little bit of down payment, right? Yeah. Exactly. Yeah. You're going to drive I was planning on buying something for maybe two or three thousand dollars. I I think based on the Kelley blue book, which I recommend. I think I have like seven or maybe six thousand dollars that I would make on selling it. What do you want it eighteen thousand? And what's your household income? I make fifty three thousand. How old are you? I'm twenty four. Okay. Single. Yep. Okay. Well, I I do a long term girlfriend. So we have really house thing is a year plus out, you know, I mean planning paying the car off it'll be a few years, but we we may not getting married and then buying the house together, and that's kind of the plant. So okay, then well, why don't you drive the car and pay down on it until you get closer to that part of the decision? You can always sell the car later. Yeah. Yeah. And I love the car, which is why I was kinda kinda fits within the guidelines is less than half your annual income, you could pay it off within two years. The only thing the only reason to sell it is it's a blocker on buying your house. But you're not ready to buy the house yet. Right by the time. You get rid of about the house the car might be paid off. Yeah, that's true. And I plan on doing it in about a year if I'm really aggressive. I can hear you plan on getting married year or so, and so you home after that after the cars paid off and after the marriage, so keep the car. That's really good advice. I got one more thing that the mortgage broker talked to I just wanna make sure this number sounds right to they told me to recommend it a conventional mortgage and have like a five percent down payment. Does that sound right? Be a rule of thumb. Yeah. Put at least five percent down the cheapest mortgage out there is a conventional on a fifteen year fixed. If you're not putting down twenty percent twenty percent or less. You're going to get PM. I private mortgage insurance charged to you. And that's gonna you know, that's gonna cost you about seventy five dollars a month per one hundred thousand dollars borrowed. And so just keep that in mind, but that's not the end of the world on your first home. But again, a fifteen year fixed when you're married or the payment is no more than a fourth of your household. Her income included, take home, pay your debt free. You have your -mergency fund in place of three to six months of expenses. Jessica is in Tampa. Hi, Jessica, welcome to the Dave Ramsey show. Hey. Hey, good on. So I have a question. I am. I have step one done. I'm on step two. I recently relocated from Pennsylvania's to Florida. So when I left my job, I had a pension, and I put it I put that in the IRA through my Bank. It's about thirteen thousand should I meet with a financial advisor just to sit down and talk about how to put him in the four different categories that you spoke about okay. Even though I'm not investing in it. Or I'm not ready. You've got the thirteen thousand rollover, and then you build a relationship with someone that you learn from them begin to trust. And when you get your debts paid, and you have your -mergency fund in place, then you'll start doing other investing, and that might include a Roth IRA with this person. Okay. So yeah. Click Smartvestor at daveramsey dot com, and because your Smartvestor smart investor, and it'll drop put in their formation drop down list of the people in your area that we recommend and then you can choose from among those and you'll get advice from the heart of a teacher that is consistent with what you hear here on the air. So these are people that will walk you through. And they'll help you do that roll over you can roll it from that Bank over into some good mutual funds. We don't ever recommend doing a Bank array ever horrible, right overturns, basically, like a savings account in your IRA. It's just ridiculously bad. So good question. Rashad is with us in Charlotte higher shot. How are you? I'm doing great, Dave. How are you better than I deserve? What's up? Hey. So right now, I'm I'm gonna situation right now where kind of feel like I should have called you about seven months ago. So I was I'm in three hundred fifty seven thousand dollars a twenty nine years. I just got married a year ago. And we just the most of that comes from a house that'd be purchased months ago. The house was about three hundred twenty six thousand and right now eating up like fifty five percent of our take home pay. And I know that number should be down twenty five percent. I was wondering we give them pretty good neighborhood where the where expecting some increases in property value and things like that matter, you can't survive like this now when you say take home pay to you mean after you're putting money in a 4._0._1._K or just take on pay after taxes. Take on pay. He had no take on pay after Texas anthem money 4._0._1._K. Yeah. That's the number. The number is not counting for a one K not county insurance or anything else just after tax income. And so how much of this? How much would this number change? If we didn't count your 4._0._1._K. If for so monthly that number would change about fifty six hundred dollars a month combined for us on a monthly take home pay. Okay. Meaning the fifty five percent of your take on pay at that point would be more. Like forty percent of your take on bay. Yeah. I'm guessing I don't know the number on the house payment, but twenty one hundred dollars. Okay. And if you did not put money in your 4._0._1._K. What would your take home pay be? So I'm unit two different income. So that's a little bit difficult. So he's like my Uber. Income much aren't like fourteen hundred dollars a month. Uber and then my fulltime job like I have a salad for eighty eight thousand but take homes, usually if I do not include the 4._0._1._K would increase my thirty hundred dollars biweekly payments to about I'm sorry, thirty hundred dollar monthly payment to about our like a hundred or maybe like two hundred and twenty dollars 'cause I only can ship you like maybe a hundred and ten dollars. You should be getting home with making eighty should be homeless sixty to sixty five thousand. Which is about five thousand one hundred a month, plus fourteen hundred so we're at about sixty five hundred twenty one hundred so your house payments, probably about thirty to thirty five percent somewhere in that range of your real take home pay not counting that I'm just doing this in my head of quick and dirty here. So you've got strain, but I would stop your 4._0._1._K until you get these other debts paid off. You've got another thirty thousand dollars in debt not carrying this house. What is that on? I have actually have forty seven thousand dollars in student loans. Then I have another ten thousand dollars in credit card debt, and then another ten thousand and like Apu from IRA retirement much much on your cars. I paid off my cars last year to it. Okay. So we're going to walk you up. What we call the baby steps stop all saving all investing temporarily have thousand dollars in savings. Do you have any money and savings? I do I I've completed babysat number one. You got one is all only thousand gonna have more than that. Little it's like thirteen hundred dollars. But I just have ten percent of my income going into like a separate account for like. Suffered of saving now. Stop that. Okay. Stop everything one thousand dollar saved everything above that. That's non retirement begin to work your debt snowball, which is pay off all your debts, except your home smallest to largest in that order. You get all of that cleaned up and you continue to work your butt off. And be on a budget think your house is probably going to work out. Okay. It's not great. But I think it's going to be close. Let's get one hundred percent debt free except the house and build your emergency fund of three six months of expenses. Then let's talk about the house. This is the Dave Ramsey show. Today comes from blinds dot com. One hundred percent satisfaction guarantee means even if you miss measure, you pick the wrong color, they will remake your blinds for free you get free samples free shipping. And with the new promos. They run every month you'll save even more use the promo code Ramsey to get the best deal lines dot com. Tabitha's in Ohio. I'm on baby step to getting out of debt. My work now offers a Roth for a one K. What should I do my traditional for a one K? Can I move it all to the Roth not without the taxes being do on that amount? And so you're going to create a pretty sizable tax Bill, and I would not do that at this stage later on when you've got some wealth. You're out of debt. You have your emergency fund. Get your house paid off that kind of stuff then. You can convert that traditional to a four to a Roth or whatever and you'll just have to pay the taxes on it. I moved all of mine into our Roth awhile back. So that I could get it growing tax free from this point forward and have more control of it. But I was in a position of pay all those taxes without without wincing. When I did that. So when you restart your baby step four restart, your 4._0._1._K, you'll start it with Roth and you'll just leave the old traditional alone until you get your house paid off and have some extra money to pay those taxes with Adam is in Saint Louis, high atom, welcome to the Dave Ramsey show. Mr. MBR, you better than I deserve. What's up? Well, my wife, and I were on your program. We actually I filed a chapter thirteen bankruptcy about two years ago. We paid on it up until October. And we let it lapse and Tober. Remember this Semper, so it making December payments, and they dismissed it. Just last week. Why did you laps? Because we decided to try to pay that stuff on our own instead of having it paid through the bankruptcy. I don't know why I've talked about it. And we've been doing real good with paying things off because we make quite a bit of money. So we're doing really well at paying some of the stuff and one of the things was with our Bank. So we kinda wanted to get that paid outside the plan. But they wouldn't let us make payments on it because we made a payment on through the plan. And my Lord vise me that we would be eligible for chapter seven in may, which this year has that's why we have been paying on chapter thirteen for a while they still like forty three grand. My question to you is do we go ahead and pay the three hundred ten dollar feet a up the plan and start paying on it again, or do we wait until may and file the chapter seven. It's just in my name. It's not in her. Okay. I'm confused. You stepped out of the thirteen because you thought you could pay the payments. But now you're gonna take it to a chapter seven why? Well, he'd given us the option as one saying he's giving us the option to either. So what is your household income hundred ten thousand and you forty three thousand dollars in what kind of debt? One. I was a business that failed for me. So one of them's to them are couple of places that I just for the business. And then one of them is a very old college loan and the capital Amman credit card, and then when was doctor Bill break that down for me how much were the two vendors to Inter's where seventeen nine and the other one was actually that was the only one vendor was all I had. And then the other one was a car a brand new sixteen four tours that we gave back, and they sold it, and we owed eighteen thousand on the difference. Holy now eighteen thousand all right and any other what other vendors sixteen hundred college about fifteen hundred Capela one's twenty eight hundred. A lot of small ones that we could take care of ourselves. And I do want to take care of him. I just I don't. I don't wait. Or now. Here's the thing. You don't want. You were under the protection of the bankruptcy court. You are in the warm house. You've just walked out in the cold, right? And the door shut behind you. Now, it's not locked. Shut behind you. And you're standing in the front yard and the snow. You following me? I mean, all these people can get at you again. They can sue you. They can do anything. They wanna do. Now. Like, you said, I think if you roll up your sleeves, you can pretty quickly plow through all the little ones the deficit on the car, you probably can settle that for about twenty cents on the dollar, especially especially post-bankruptcy with chapter seven staring them in the face potential chapter seven, right? So you can probably settle that for four or five thousand bucks. And in lump sum get it in writing don't give them any money until it's in writing. It's a matter of fact, don't do that with any of these deaths, even the small ones you have to get confirmation on exactly what you owe what you're agreeing to pay to clear the debt, and then you cleared as fast as you can right capital. One's not gonna bother you the old the old car, the the old student loan debt, or whatever it is probably not going to bother you until you can get them knocked out again. They're smart enough. You'll be able to plow through them pretty quick right now, the company that I know for some period, they're probably gonna come after me seventeen nine nine. Yeah. Okay. So here's the deal. I think that may be your aunt. They may answer your question. Okay. So what I would do is call the guy, you know, him still. How pissed is. He. I just want their money. I'm sure they would take payments. They would take payments for me. Even I just they just her. I never did that always took the step to do the chapter thirteen thing. And that was the best way out. No, we on your program that I would do. That's all. Got and ask if you can have thirty minute meeting drive over sit down in person, you'll get a lot further in person than you will with emails or phone calls. Okay. Right. And say, okay, how you seventeen nine. I don't have any money, but I have a decent income. I am my lawyer is advising me to take this thirteen and put it into a seven, which I got a bunch of little debts. And you're the big one. Okay. Just telling the truth telling the truth. Yeah. And and you know, I got a bunch of little ones, and I got one big one you I can handle the little ones. And I can be able to clean them all up and so forth. But if you're gonna push my nose into the sand that's going to force me to follow chapter seven in which case, you'll get zero. Because that's what chapter does unsecured creditors zero. Okay. And so I don't really want to do that. And in unless you're just so pissed you can't see straight. Then you don't want me to do that. You just want some money. So. If I were to say one hundred dollars a month. I would not cut a payment deal. I would say just I if I were to save up like eight thousand dollars right quick and handed to you could we call this. I see what you're saying. And for less money. Yeah. I'll bet you he'll take it. Okay. Fifty cents on the dollar. And I would do a reverse that snowball. And I give him his money. I if he's willing to do that. Because then I pay him off the other ones. Wait, the other ones can stand on their head. They're small if they don't stand on their head. You can step to the side and knock them out wreck quick letter. I'd give them zero for awhile. And I'd pour every ounce of cash until I gave him eighty five hundred bucks and settle this or non thousand dollars satellite or whatever. It is. Right. Okay. Right. And whatever the number is. But if you can offer with you can do that pretty you could probably do that in sixty days. Oh, yeah. Easy. You'd have to be on beans and rice, but you could knock him out. We already are. And not only that that's a guy you would like to pay. Yeah. And I can just tell talking to you. Yeah. It was a business mind. I don't mind on the car deficit. I'd go to them last after you get all the other stuff cleaned up and offer them quarter on the dollar with cash. Go to them first. But go to your big guy. I and if he says, no I want every dime. You just can't do that. I can't I can't get their mathematically fast enough. You're gonna force me into a seven. So please what's work out some kind of deal and see if you can sit down with him in person cut a deal. I think you can do that. And then you're you're no, you'll convert dismiss your thirteen not have to file the seven and work at through. I'll betcha this will work. This is the Dave Ramsey show. Dave get rid of my whole life, follow season gift term life policies. Yes. And saying that for thirty years, and we've been telling you for twenty plus years to go to zanderinsurance and get a quick easy, quote there Tristesse on the on the Ramsey baby steps community on Facebook, and you can jump in and be part of the official Ramsey baby. Steps community on Facebook. You can join that. There's there's like a hundred thousand and there's something just want to say, thanks to whoever recommended contacting and endorsed local provider in your area for car insurance. Contacted the one recommended in our area, and we are going to save almost twenty one hundred dollars a year. Wow. You were really getting screwed. Now, I can even put more towards credit card debt good. It's been awhile since you, check your insurance coverage. Maybe maybe you're Tricia, you have no idea how bad it as go to good insurance broker. And make the decision. To get your insurance shopped among a bunch of different companies, just go to daveramsey dot com slash E, L P or click insurance EL pee on the front page either. One Scots in Denver. Hey, scott. Welcome to the Dave Ramsey show. Hi, dave. Thanks for talking to me. Absolutely. How can I help at the huge honor speak with their life? And I say step three and ready for the fun part. My question, though, is my parents have asked me to be check your of their will. And it's an honor. But I have no idea. How I go about learning the obligations and responsibilities for this. Do you have any recommendations of where I should start? You could do a couple things one is it's real simple to understand this. The executor means the one who executes thus the name. An executor is the execute her. That's what that means. You're the one that's gonna execute their wishes. Okay. All right in order to do that you need to have a real clear understanding of what their wishes are. And that means obviously, you need a copy of the will you need to have gone. Oh, so one thing you're going to do is read that you're going to discuss it with them. And you might even want to sit down with their attorney and say, I wanna make sure that I know how to do this. It should something come up God forbid when something comes up, we all someday. And so, you know, I'm going to be in charge of this. And I need to know what that means. Okay. And basically, I mean, if they have a house, and they say for the house to be sold and the proceeds to be distributed among your brothers and sisters, and you then you would hire a real estate agent upon their death and. You know list the house when I got a contract on it. You would sign the contract and the deed would be required to be signed by the heirs. Okay. And so you just walked through if there's mutual funds you are to distribute those, you know, five thousand dollars to go to Bobby sue a thousand dollars to go to Henry, then you send you just execute that you just take that mutual fund and do that with it. You just do what they said to do. That's all you're allowed to do. And that's all you're supposed to do. But you need to know what that is. So couple of steps one is sit down with them and go over the will understand it to add sit down with the attorney the third thing. I like to do is anybody that's involved in the wheel like your brothers and sisters and so forth. I recommend a reading of the will while everyone still alive the guy. That's a great idea. In other words, your parents, call a family meeting and say Scott is going to be the executor. Here's what's going to happen when we die. You're going to get this. You're going to get this you're doing heroin. You're getting zero. Right. Whatever. Right. I mean, if you're gonna piss somebody off go ahead and do it while you're alive. Right. That way, you don't get caught and your brother who gets nothing because he's misbehaving and your dad didn't wanna leave him. Anything is mad at you. Because you're not allowed to do anything. Except what your dad said to do in the will. That was is will it's what he willed to happen. My will is that my children grow up healthy. His will is that he wants. That's what the where the phrase comes from to do a last will and testament. And so, you know, I just go ahead and everybody now, even if it's a very functional family, this makes it even more functional lowercase in our case, what we do mine is so complicated because there's so much crap that we deal with you know, that we actually have a huge family meeting with the lawyer and the leadership of this company every year and go. Oh over what happens if David is in the next year. It's really it's really hate the meeting because it's all about me dying. Yeah. I could understand some trepidation there. But we're planning my death in the coming year. Every August, we do this. And so that way there's no brothers or sisters or inlaws or grandkids or goals or anybody that is under any allusion what's going to occur except what's going to occur. What happens when people don't know their shutout or not getting something they thought they were getting or whatever. And they only find that out after death. You end up getting blamed, and it's not your fault. Absolutely. So I do a reading of the wheel that'd be the last step. But it's really not a lot to it unless the state is really really complicated. Meaning there's a lot of different assets that mom and dad own and if they have a super complicated bunch of assets that they own then it's going to be a complicated process to be the executor. For instance, if there's a family business involved who's going to be running the business. Are you supposed to run it? Your dad's is run the business until you can get it sold, you know, this going to be a process there. So those kinds of things you just need to know what you're signing up for. And then you you'll know how to get prepared. It'll come right to you. That's all it is. But. It is an honor. It is also fraught with emotional danger from siblings and so forth, and it is also time consuming. So just keep all about in mind that you're taking on a job and in a bigger estate, the executor typically will get paid and executor fee because it is a job. It's something, you know, it takes a lot. It takes a lot of your time. You're gonna be meeting with lawyers go into court doing all these different things to execute to the extent that this is complicated. So good question. Thank you for joining us. Rachel is in Orange County. Hey, Rachel, welcome to the Dave Ramsey show. Dave, how're you doing today? Better than I deserve. What's up? Oh, excellent. I've talked to you in December and about college, and you said going in state is the best way to go the living expenses in California are pretty high. And I was wondering if it's a bad idea to move out of state live there for a while. And then apply for college. In a statement. I would pay less for living expenses. How old are you? I'm I'm gonna be twenty five this year. Well, you're already living in California. Are you living with your parents? I am living with my parents right now. And so you're going go get a career and establish residence in another state by working there. Right. Yes. That would be the plan. And yeah. I would want to know what that state's rules were with that university on re establishing residents how long does that take is that in most places it's a year. Yeah. So I'm looking at ho-, and I talked to them, and they said, it's it's one year, and I can reapply against. And you know, what you could do you could do community college for your first year while you're doing that? Because you don't have to have residency to do that. Yes. Definitely I have five years under my belt already of community college. And they. California. Okay. I forgot I didn't know that part are probably did from our last conversation. But I forgot it. Okay. So yeah, that we think you probably got enough done there. Yeah. So anyway. Yeah. I don't think that's a bad thing if you like Idaho. And obviously you've got some connection there. Some some reason to pick that particular state, and my guess is that's a fairly inexpensive school compared to some other states. And I think that sounds like a great idea, it's probably gonna cut your costs pretty severely over California. So wonderful and study something that's usable in the marketplace. Obviously don't get a degree in lefthanded puppetry. So hey, good. Very good interesting pursuing idea, this is the Dave Ramsey show. Hey, it's Kelly says he producer and phone screener for the Dave Ramsey show. If you'd like to be your debt free scream live on the show. Make sure you Bizet daveramsey dot com slash oh. It registered. We would love for you to come to Nashville day your story. Hey, guys, if you're looking for real world, leadership and business advice from the top minds in business. Check out our entreleadership podcast. Hey, folks can Coleman. Here would love to have you. Join us weekly as we dive into conversations with the top minds in leadership and take your business questions to help you grow yourself your team and your profits. Don't miss an episode subscribed. Entree leadership where you listen to podcasts hates James producer of the Dave Ramsey show. This episode is over but check the episode notes for links to products and services you've heard about during this episode. Thanks for listening.

Dave Ramsey advisor Ramsey solutions Jessica Tampa Smartvestor Florida Kelly Lexington rove Brian scott Dave attorney
Make a Decision to Win with Money. Ready, Set, GO! (Hour 1)

The Dave Ramsey Show

39:58 min | 2 years ago

Make a Decision to Win with Money. Ready, Set, GO! (Hour 1)

"Live from the headquarters of Ramsey solutions. It's the Dave Ramsey show were bad is dumb cash is king and the payoff on mortgage has taken the place of the BMW as the status of Joe, I'm Dave Ramsey. Your host. This is your show. Thank you for joining us. Open phones at triple eight eight to five five two two five that's triple eight eight to five five to five. Suzanne starts Zoff this hour and Midland Texas is Suzanne how are you? I'm good. How are you? Better than I deserve. What's up in your world? Well, I'm gonna turn sixty five minutes Simba, and I'm going to retire in January. I have been on a defined benefit plan. And I have an offer to either take a lot of New Jersey, a monthly, you know, my benefit or take a lump sum, which is better, which should I do. Title lump sum. What do I do with it? Once I take it with a Smartvestor pro. If you don't have a financial adviser do a direct transfer rollover into a traditional IRA, they'll be no taxes on it. And I would spread it across four types of mutual funds. I want you to learn about those and sit with that investor that investment advisor and get some help from them and take your time. You got time to do this or no rush, and I put mine, I'm fifty eight minor invested in four types growth, growth and income aggressive growth, and international. If you wanted to dial that back a little and not be quite as wild. You would take the aggressive often replace it with a balanced, but a one of our Smartvestor pros can help you do that. Or or another broker can if you're working with someone else the reason for that is simple the the defined benefit plan. Dan, by regulation, calculates your monthly payment that they're going to give you based on a seven percent rate of return on that lump sum. Okay. Either five. I five to seven somewhere in there. And if you invest in good mutual funds, you can make you know, ten to twelve percent average. That's what the market has averaged. And so you'll make more while you're alive. And of course, when you die with the life annuity it dies with you. So what is the lump sum? One point one million goodness gracious way to go millionaire. Well, and thank you because I paid off my house, and I paid off my car, and I did what she said. And I'm in really good shape urine great shape. So if you die they keep your million dollars. If it's in the newest. No, not if you I guess, we should say when you die, right? And if you roll it to an IRA, it's there for your inheritance. Goes to your heirs to whoever you decide to give it to your will. So it's a million dollar swing in this discussion at your death prior to your death. You know, you know, million one to create basically a hundred grand a year in income. And I doubt they're offering you that they're probably offering you more like seventy eight year that would be my guess. So anyway, Brad along those lines. That's what you're looking at and sit down with a Smartvestor pro. If you don't have one just click Smartvestor at daveramsey dot com. These are not people that work for me. But people that I endorse and they advertise with us. And so there are people that will give you should with you with the heart of a teacher teach you you don't put money in it because I said to you put money because you understand it. But this is what I would do. I would roll it to a traditional IRA in some good mutual funds better while you're alive and better when you die comes out better both ways Jason's with us in. San diego. Hi, jason. How are you? I'm doing well. Okay. Two two major things. I'm a new listener. So kind of brand new all this one. I'm eighty seven student at that's that's not my major issue about a year ago. I got into a car fleet and. The over before you least journal would have been paying about twenty new in grand, the buyout price for this loan is is for this vehicles thirty two and I can't afford it. Either way. Okay. So the that you've called them in the current early buyout on the fleeces thirty two thousand like your payoff, right? Yes. Okay. And what's the car worth? Kelley blue book value. There was a ranged from twenty one to twenty five. Okay. Well, I'm guess is that private sale? Yes. What car is this? It's a twenty teen Chevy, Colorado. Oh, interesting. Okay. Wonderful machine at all. Yeah. Great. So all right. So let's let's us twenty-five. Our example, if a buyer comes up and offers you twenty five in order to give the buyer the title, you have to have another seven, right? You'd be seven in the whole seven upside down. I need you line that money up either from savings or from going to your local credit union, your local Bank and lining up a loan for seven thousand dollars. And you know, that's the first thing to do. You gotta get that much. You got to cover the difference. Should you do that the answer is and probably yes. What's your household income? Right now, I just started new job out ago. And if it's just a flat, forty hours a week thirty nine by overtime available. So I can okay. Yeah. This is gone. Yeah. You got to sell it doesn't fit it doesn't fit in your world. Now how much is left on the lease? About a year into a four year. Lease that's probably stick. Yeah. So if you add up three years of payments remaining versus seven thousand dollars it costs you to sell it today. It's going to be it's going to be higher. And so you're the seven thousand dollars gets you out cheaper than keeping it. So yeah, this is gone for multiple multiple reasons. Okay. So so the first step would be to to listen try and find a private seller, and then take out the loan, and then pay off the seven k exactly you got to be able to pay you got to you know, you're gonna get twenty five from buyer, and then you've got seven with that to send the fleece company because they hold your title, right in our example, it won't work out. Exactly that way. But I mean, basically, you got to send them what they're asking for to get the title, and you can have that lined up. So I go find the loan and get it pre-arranged. You can either take the loan or wait until you get the Meyer. I'd probably got the buyer, but go ahead and talk to your credit union, talk your local. Get the loan in place ready to go. And then put the pro put the car on the market, and let's get it sold as fast as you can. Because it's you're right. It's killing you. I mean with your income and that payment. Ouch. Ouch. Hey, thanks for the call open phones at triple eight eight to five five two two five. He did catch on early as as a new listener to the lingo. We don't call them. Kara leases. We call them fleeces. And if you're not from the country or old school, you may not know what that means. But if you shear a sheep, if you take his hair off, that's that's the fleece. And so you've been sheared. You've been fleeced. And it's the worst most expensive way to operate a vehicle your cost to capital on the typical car leases around fourteen point two percent. But it wasn't disclosed to you. Because you're renting you're freaking car. You don't even own it. This is like. This is like a bad idea. You know, this is the big Ramsey show. Listen to this. Eighty one percent of confirmed breaches are due to weak, reused or stolen passwords. The fact is reused online passwords put your identity at risk. No one has time to deal with that mess. That's why I personally use last pass to help me store and manage all my passwords. Join over thirteen million last pass users and start managing and securing your passwords today. Tried for free at last pass dot com slash Dave. Get it at last pass dot com slash Dave. Matt's with us in New York City. Hey, Matt welcome to the Dave Ramsey show. How you doing? Thank you for taking my call. Sure. Talking to help. Boy, I know you. That it's time. I realize I deserve better though. I've been watching all your YouTube. Thank god. I have. So I have a question I'm on baby. Step number two. I'm moving through a pretty fast fill real confident about it. And now, I'm at point where both people are have student loan, and I have a personal loan or about thirteen thousand and the person alone is about ten thousand. I was just curious though, that would mean that the student loan populous, I'm actually not paying money on this student loans because they're in deferment, I'm still in school. Would it be smart to attack the personal loans into the crewing interest in making those monthly payments? And then after that goes away start with the student loans or just keeping the order of mobile. Doesn't matter. You can get away. You're going to get out of debt at about the same time. The personal loan was the ten thousand or the student loan. Right. Yes. The personal loan was a ten thousand year. It'll be next. Anyway, it's the smallest debt. Yes. But I'm not paying any money on the student loans. I know Aaron, but it's it's not you're not paying any money on it. It's thirteen. So if you're going down the debt snowball smallest debt to largest debt next up is the personal loan. Anyway, isn't it? Okay. Yes. And then just get rid of that when you get rid of that. And even if you don't have payments on the student loan, go ahead and get rid of it, even you know, I if you're still in school by the time you get to your student loan. Okay. Yeah. My only fear was that paying personal loan. If when I is in when I do graduate. I'm hoping to graduate within the next few months when those student loans do kick eight I'm nervous that it'll be too much, you know, all together. But I think you did answer my question as just stick with this no-balls with what you say and attack that one person you're going gonna get there, you how much you paid off. All ready I've paid off probably about five thousand now. That's thank you. What's what's your what's your degree in Bs in psychology? I work with adults with autism in a couple of months. So yeah. So I I actually called the college and all the other student loans that I accept it. I'm going to be paying out of pocket for those afterwards to you. Good. And what do you what do you? What do you? What is your current income and will your income change after graduation? So my income is a little strange, but I do make face forty thousand. But there's a ton of room for overtime. So I can get up to about sixty or seventy okay. And that's now or after graduation. A little bit of both. I work enough overtime. I can't get to sixty thousand marks without the overtime. It would be after graduation. Like, a madman with overtime. I can get there now and after graduation, I can't. So let's say say that we're talking to a guy making sixty to seventy thousand and he has twenty three thousand dollars in debt. How fast can you pay that off eighteen months ripping year? Yeah. Within a year and a half two years. Exactly. Yeah. That's that's where you are. So you're in good shape. You're going to get there. So you'll be able to not only make your minimums on the student loan when it kicks in the other loan probably be gone and. Not only will make your minimums on the student loan. But then on top of that. You'll be able to go ahead and knock it out really fast because you're gonna be paying thousand fifteen hundred month on that puppy when you get there Todd is with us in Sioux Falls. Hey, todd. Welcome to the Dave Ramsey show. Hi, dave. Thanks for taking my call. Sure. What's up? Hi, my wife, and I have been using the principles for ten years ever since we've been married, and we are debt free except for house. I am a veterinarian, and we are from Washington state. We moved to South Dakota to take my first job and then packages comes for sale back home. So we are moving home. And I'm finding that passes moving in, gene. We listed our house here in Sioux Falls and the first of August for two hundred ten that's why real estate agent suggested. And we load it ten thousand a month. Now that one seventy had Joe shillings one son Evan mall town. Yeah. Over to ten and you got zero showings, right towns about fifteen hundred people. Wow. So what would the property actually appraise that or you to have an appraiser come out? Probably between one fifty one sixty. Then why did you put it on the market at two ten? 'cause that's closer to the comparible. Compare. Compare Ables or how you do it on praise. Okay. So Where'd you get one fifty? We finished the basement of this house. No when I ask you what an appraiser would appraiser for you said one fifty but you said the compare Ables indicated to ten I don't understand. Where'd you get your one fifty? From the banker when we finished our basement slow bankers are idiots. You don't need to do them use appraisals. Now, your real estate agents should be able to pull comps in the area. The problem. You've got is not a value problem. The problem you've got there's no buyers in a small town. Right. You're absorption rate. We call it the number of two hundred thousand dollar houses sell around there might be three a year. Right. Exactly. And that's your review and told on them and try to sell it for the mouth away or just keep coughing. The thing. Well, I mean what you're doing is. Let's say that when it does sell if it takes a year it sells properly for two hundred K. But instead you lower it all the way to one fifty to get rid of it. Okay. That that costs you fifty grand a lot. And and if it costs you fifty grand lower that how long would you have to eat those how long before the payments would eat up the fifty grand? What do you owe on the property one hundred and how much are your monthly payments seven hundred and fifty okay? So what we're saying is before you drop it fifty grand. You would give it five years to sell. Okay. Fifty times seven fifty is sixty months. Right. Yeah. That can mess up my ability to I it's you're gonna be renting you're going to be renting in the new place until you get rid of this boat anchor. That's around your neck. But I'm not gonna give up fifty thousand dollars to do that. So what you need to ask your agent is how many houses in this price range sell in a year. Or how many houses sell in ninety days in this price range? I think we just found out. None. In the ninety days. Yeah. So how many sell in a year? So what is the prognosis? If we leave this thing at market value because it's not a price problem. It's a problem. You can't solve is that you don't have any buyers the marketplaces just super small. And so you've just got to ask because I guess you could lower it all the way to one hundred. But at some point you've lost your tail end, right? Yeah, I'm gonna I'm not playing. I'm gonna plan to hold it and give it a year. Will just land and on the other side. Yeah. Team. The whole year. Well for fifty thousand bucks. Yeah. That's twelve thousand is payments for a year. Yeah. We'll give it a year. And I'm gonna wait you're twelve grand against fifty assuming that houses sold in that area. When you look back at historical data, if you look back and you find okay five houses on a year in this price range in this town. Okay. That's that's probably what you're gonna find something like that. If you find zero houses of sold in the last twenty four months, then you're just screwed. You've lost your, but you're going to have to take the hit. Okay houses for sale. No. I said so like two years, I said, I know that I'm asking how many houses two hundred thousand dollar houses sold in a twenty mile radius in the last two years. That's the data. I want if it's five then I'm going to give it a year because I think that's what you're gonna find. If it's zero then you're in a completely disastrous marketplace, and you're gonna have to take the hit and. You were somebody else's savior when you bought this thing. Wow. But I'm gonna guess say that's not zero. But I mean, I know guy just put a ten million dollar house on the market and zero ten million dollar houses have sold in five years in his area. Guess what that house in no sale for any price? It can drop it to five me. It's still not going to sell does. He got zero buyer activity in that price range in that marketplace zero buyer activity that can happen. The lobby Ramsey solutions. Jordan hem Chelsea with us. Hey, guys. How are you? Good. How are you? Welcome. Welcome Morty all in Dayton, Ohio. Right. And here that free scream there, and how much have you paid off seventy thousand a right and your how long did this take about four years in K and your range of income during that time? So we started at about forty five thousand and ended up at about one hundred seventy five thousand there's a little job. Okay. So what kind of debt was the one hundred seventy thousand student loans student loans. How long have you been married right up for years? Okay. So you started out and just start to start out careers, and then both of you get jobs, and then the careers took off is that explain his you jump. So when we got married, I was actually still in pharmacy school, and when I graduated that's why the income kind ticked up. Okay. All right. And that's why jumped up a bunch that hip. Okay. Very good. So you're a pharmacist and the pharmacist at the pediatric hospital in Dayton and also work at another hospital as well. Cool. Chelsea what do you do Santa band? Newness practitioner. I actually just graduate with my master's so B N P career when we get back by been working as an RN. Nice both great careers. Incomes are shooting up fast. And so lots of student loans. I get it get married for years ago. So you have t shirts I can't see them from here looks like a picture of somebody. And in your whole posse is with you at their teachers both sets of parents are with us in the shirts. Say team McClellan. Can't keep quiet because we're debt free. All right. Okay. Very cool. So you get married you're in pharmacy school and you're staring down the barrel of this huge student loan debt. I mean, it's all full you're a millennial. You're not gonna make it you. How are you going to survive your victim of the system, but not you guys? So what happened tell me your story? So the story actually goes a little further back than that back to when I actually asked Chelsea's dad to marry her. He actually he said, yes. But then one of his next question was so I assume that you have a lot of student loans here, and I was like you'll. Yeah. At least all yours. No, not all of them thirty for his. You had forty you at one thirty. Okay. All right. And so he said, so what's your your plan about all these student loans, and I kind of floundered around and then a few weeks later, he saw fit to give us the total money makeover audio book and shortly after that, we listen to it and just kind of looked at each other. And it's like this is what we've gotta do. Like, this is the answer. He's he's subtle. Bric a window. Listen to this. Okay. Got no plan. Said yes on the blessing. But you got no plan. Listen to this book. God I like this dad stuff. Well, done very cool. So you listen the total money makeover audio. Then what happened we got married? And after we got back from the honeymoon. It was game on ball off the audio book. Yeah. Wow. Very cool Li listen to podcasts them to kind of our motivation to keep going. Sure. Four years of pretty long slot. Oh, yeah. So how long before you got out of school? How long have you been out of school? I've been out of school right at two years. Okay. Of the four years. You guys are just hanging on and, you know, Chelsea's working, but we've and your student loans activated Chelsea, of course. But but his hadn't and so really this kicks in in the last two years, right? Big time with the income hand with the student loan debt kicking off. Okay. Wow. Congratulations. Thank you. How weird you are. So. Aired. I mean normal is deeply in debt broken. No hope and you just decided not us. What made you believe you could do this just listening to people and hearing their stories, I think is a big part of it. And that's part of the reason we wanted to be here is just doing courage other people who are listening to know that. Yeah. It may be for years. But if you keep at it and keep your nose to the grindstone eventually, you'll get there. Two years were treading water in two years or game long. Yeah. I mean you were game on a motion Lee. But mathematically, the there's a curve on this is pretty ridiculous. Yeah. Why did go go? We're proud of you. Congratulations. I know your parents are proud of you. So we know who one of your cheerleaders was your father in law Chelsea's dad, but who were there, and obviously mom and dad are both sets are here to cheer you on. But who are your that's your biggest cheerleaders that was your camp? Basically, our parents. I mean, a lot of family support. And I think other people at work were kind of looking at us cross-eyed a little bit no family was in our corner, though only needed. I mean, most pharmacy students, nurses. It's a typical thing like Docker, whatever we're going to keep these loans around like their pet share, you know, and they don't they don't think they can just knock them out. And you just punched it's lights out. So what do you tell people the key to getting out of debt is? Just finding a plan budget sticking to it, especially if you're married just get on the same planning, go out at full force. I think having your partner there is key. Because there were definitely times for years a long time where kind of like, I'm tired of this. I don't do this anymore, and he'd be there to paint me up. We're still doing this. And we had each other's back. Now, that's a big part of it. That's a really big very well done. Good. Good. Good. What was the hardest part? I think just continuing to stick with it for years is a long time and just having to go back to work day in and day out. And know that we're going to get there eventually, but it's it's a lot of work between now. And then so how old are you guys about twenty eight? Yeah, I just turned twenty eight and twenty six okay. That fits the story line. Yeah. Very good. Good for you. Well done well done. You're not even thirty and you've already killed it. You got a great income. No payments. It's yeah. You're going to be one of our everyday millionaires. Absolutely quicken forward to it all your way live like no one else. We got a copy Cogan book for you for tire inspired. That's the number one bestselling book, and that'll help you with that next chapter. Is you got chapter one close time to open chapter two baby came on. We got stuff to do here. I love it. Well done well done well done. All right. It's Jordan Chelsea from Dayton, Ohio one hundred and seventy thousand dollars paid off in four years making forty five. One seventy five counted down. Let's hear a debt free scream three two one. Well done you too. Well. No victims there. Those are victors you're going to be one of the other, aren't you? I mean, we all get knocked down get trashed we all get ourselves in stupid situations. We all do this regardless of which generation near from XYZ, millennial, boomer. I don't care. Everyone of you. Everyone of us have had the opportunity to do something stupid. It'd be a victim victim of the the man. I'm a victim of an ISM the 'isms who've got me, I'm stuck. I'm a victim of Baldas them. People. Don't respect ball people. I'm hurt. I'm a victim. Not those to those two millennials right there. They're rockstars. And I make millennials just like them all the time. So don't you dare come into my presence and trash lineal? Oh, yeah. There's some of them get their participation trophy and live in the rose basement. I got that. But I'm eat people. Just like those to all the time this nation. This world is in good hands with his next generation coming up not because of all of them. But because there's plan a good ones, plenty of good ones. And if you think they all vote one way or think one way, well, you're just narrow and stupid. You don't know what's going on out here. I get to meet these kind like this right here that hang out, man. That's a twenty eight year old couple that will make two hundred thousand dollars next year and don't have any debt in the world and no out of control their money and have relationships with both sets of parents that are here to endorse them and lift them and cheer them on their life is. Set. Well, they're privileged. Yep. They are they were privileged to make a decision to win that was their privilege. They decided instead of going. Well, it isn't just always going to have one hundred seventy thousand dollars student loan debt. Nobody can pay that off. No, not those guys they did it. So what are you gonna do? Yeah. You have you don't understand. I do understand. I don't care if you make twenty thousand two hundred twenty thousand I don't care if you owe twenty thousand two hundred twenty thousand I'm here to help you I believe in you may be more than you believe in yourself right now when are you going to get control when are you going to walk out of debt when are you going to become wealthy as a result you talking to you ready set? Go. It's your turn. Thanks for joining us. Pat is with us in south the coda fat. Welcome to the Dave Ramsey show. Hey, thank Ted McCall. Dave. Hey, quick question. If give a million dollars farmland that brings it home twenty two thousand dollars year after taxes and all things fade. Would you be best to sell that? And put that money in the market and try to get seven percent on that, mathematically if that's the only Lynch through which you're looking at it. Sure. And I mean, my mutual funds average north of ten to twelve percent. And so, you know, and so if you made, you know, you had a million dollars invested you made one hundred thousand that'd be more than twenty two thousand. So what's the twenty to the twenty two is you're leasing the land. Yes. And that's just your share of the crops or however, the lease payments is derived. Yeah. Just not just leaking land. It's a straight lease. Yep. Yep. Okay. Is there a is there history on this land the style jar? I mean, it's been the family for twenty generations or. Not really, no. How'd you come into it? My wife had it. You know when I married her. You know, she got her husband, you know, first husband died. Okay. And that was it was his farm. Yes. Okay. So there's no particular emotional tie to this. I would say no would obey for these. My wife is always thought thought of it as a retirement, but I just never thought it was a very good investment. If that's all yielding. No shielding two percent. Right. And I suspect you can do better than two percent on your money. I mean, you could do that at the Bank. God help us, right? But yeah, I mean, I be ought to be able to make five times more money than you're making on this investment. Or, you know, even if you took it and bought a million dollars worth of other kinds of real estate somewhere else, you know, the that million dollar apartment complex yield, you a lot more than that a million dollar office building somewhere would yield you a lot more than that million dollars worth of rental houses in metro area would yield you more than that may be not an rule area may be a rule area. But not for sure. But I mean, you know, the. So you don't have to be that you put it in mutual funds. But yeah, you certainly are not getting much return on your million dollars. That's what it comes down to. And so that that's if there's nothing holding you to it. I'm always hesitant about farmland. 'cause there's always nostalgia. And history and everything else tied into it in this case, there's not so kind of a no brainer to sell it and invest the money to Rica's with us in Denver. Hey, tariq. How are you? I'm doing fantastic. Thank you for having me first time watching you actually honor. Thanks. How can I help? So I'm actually just got a kept it into pharmacy school starting next year in the fall. And I I guess oddly enough, I'm not asking how to get out of debt or anything of that nature talk to you about that. I'm out of debt, but I'm about to go into debt thirty two thousand per year for the four year program. And I'm kind of just trying to get my mind wrapped around it learns and stuff not to get an insight. I feel like I've heard your name for majority of my life. So. Sometimes it's word. Yeah. All right. So thirty two times four and so so we're dealing with a hundred and thirty thousand dollars. What can you do to not go one hundred thirty thousand dollars in debt? Have you thought about that? I suppose save up some money and make it a hundred and twenty thousand dollars in debt. No. Honestly, I guess I'm not too. Sure. And I guess that's why I'm line here haven't even talked at a school about the yet. But pharmacy school feels like the first step of my path. So an inevitability, I suppose. Okay. Well, the thing I'm gonna do everything I can to not do this debt because the problem with debt is on some kind of a plan like this debt, only works if everything works. So last week. I had a very sad. Call on the show. It was a young man that called me that was four hundred and thirty two thousand dollars in debt for med school. Only he flunked out. And so what he was now he's a biology major with a four year degree. He's got four hundred thirty two thousand dollars in debt. See my if become a doc in may two hundred thousand a year, he probably could've paid off that debt. Right. But if you don't graduate from pharmacy school, dude, you got issues. Agreed. They don't give you money back guarantee on graduation. You know that? Yeah. So I've even heard you can end up with brain cancer and still end up with the debt, regardless if you dropped out for that. So exactly I mean, not not too early. I mean, granted if we're talking about from a me being able to actually succeed in pharmacy school, not so much worried about that other than I guess, you know, random chance occurrences, something horrible happens. There's all kinds of I mean, I, you know, but so all of those to say that that we need to figure out another plan another way to do this. So how can we do this? Well, the good news is the pharmacy industry, really really wants you to become a pharmacist. And so I suspect CVS Walgreens, I suspect a lot of the farm a lot of the drug companies have wonderful scholarship programs. They're so desperate. Now. You may you have to sign up to work for them for four years after you graduate or something. Oh, well, you graduate debt free. And so I'm going to really work the industry that you're gonna be working for for scholarships and start working that what were your grades and undergrad point out for the five years. That's very helpful, very helpful. And put you in a position to make a good case that a year good investment and be you've got a likelihood of completion. And so so they would invest in you, meaning a scholarship program. Of course, obviously the outlier is military's always an option. They'll pay for anything in education. If you go apply with them, but you're going to be working for them for four years or some some stretch after you get out, but you gotta free edgy. Education. So one hundred twenty thousand dollars signing a hundred thirty thousand dollars hunting bonus. Of course, what can you do to earn lots and lots of money between now, and then and while you're in pharmacy school to to to, you know, pay your way along that's the other thing you can start thinking about I don't know. But maybe there's something out there that that you'd have to make a lot. It's a lot of money but make your living expenses, plus thirty two thousand a year. That's pretty substantial income we're asking you to make. But I'm really start scratching around those areas because I'm gonna till we don't tell people borrow money. And I'm not gonna tell you start with you. So we're not gonna tell you borrow money. But I won't tell you think differently about it. And what can you do the put you in a position that you can live your dream without it potentially becoming a nightmare. Open phones at triple eight eight to five five two two five. Let's take a minute to think about your future. You what if you never had another car payment? What if you never had another dime of credit card debt? What have you? Got rid of all the student loans. How much money would you have tons with? Your most powerful building tool is your income? And so when you're clear of the payments, then mathematically you're in a position to build wealth. You can do this. And there's a easy plan to help you get there. Now, it's not easy to do. But easy to understand. It's called financial peace university. It's a step by step. Course that will teach you how to spend wisely. Pay off your debt safer purchases. Start investing to become a millionaire and right now, you can get financial peace university as part of our turnaround bundle at daveramsey dot com. Take it to the next level with a one year. Membership to financial peace university. The total money makeover audio book the legacy journey e book and the every dollar God, the budgeting that's the turnaround bundle. And it's a deal. Go. Check it out at daveramsey dot com. Financial peace university is the flagship of what we do around. Here shows, you do it you go to the courses you've got the one year membership to the every dollar plus app, and man, it's incredible. And so check it out daveramsey dot com the turnaround bundle. That includes financial peace university right now. Don't miss out on that. That puts this hour of the Dave Ramsey show in the books. I think James Childs, our producer Daniels, our associate producer and phone screener. I am Dave Ramsey your host, and we will be back. James Childs producer of the Dave Ramsey show. I'm excited to announce that we're now carried on six hundred radio stations across the country defined one. Dave Ramsey dot com slash show. Hey, if you've got questions about retirement investing becoming an everyday millionaire, go, bigger and broader with my men Chris HOGAN on the Chris HOGAN show. I am excited to be able to talk to you all weekend and week out. We're going to focus on your calls, and it's going to focus on building wealth investing, and how to become an everyday millionaire. Subscribe to the Chris HOGAN show wherever you listen to podcasts. Hey, it's James producer of the Dave Ramsey show. This episode is over the check the episode notes for links to products and services you've heard about during this episode. Thanks for listening.

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The One Thing 97% of Millionaires Believe

Chris Hogan's Retire Inspired

48:08 min | 1 year ago

The One Thing 97% of Millionaires Believe

"Coming up on this episode. The Chris HOGAN show between my fiancee. And I we have about twenty four thousand student loans. We're also putting fifteen percent into a retirement with that. We're still able to put about three thousand five hundred every month into our normal saving. All right. You're familiar with the baby steps, which are not following them. And then you said she's got some debt right combined. It's twenty four thousand. Yeah. Okay. We're not combining yet. Because you haven't said I do. Welcome to the Chris HOGAN show home of everyday millionaires. I am your host Chris HOGAN. And this is your show. This is where your life and your money takes center stage. And never forget, it's your life VIP's take charge. We've got stuff to talk about. Remember, we chase down progress. We don't just hope about it. And just wish about it. We've got to chase it down. And you know, what you do your run after it and your grab it with both hands. And you're maximizing you know, why? Because at your decision. So I'm excited about today's show. I've got a lot of stuff to share with you. And you know, we're going to the phones. I mean because that's what we do. But I can't go to the phones if I don't have anybody to call. So I need to hear from you. So I want you to give us a call at eight four four two eight three nine three eight three again that's eight four four two eight three nine three eight three call us. Leave us a voicemail. I know you got questions. Right. I know you may have some success. Is out there because you all are bumping into me everywhere. And you're letting me know about the successes, and I mean, baby boomers gen-x gen Y as well as millennials so call in leave us a voicemail, and we'll get back with you. Also, if you don't wanna call, right? Maybe you don't want to call it maybe say who can opt for Email. Well, you can do that to the mail address. Ask at Chris HOGAN, three sixty dot com. Just put in the subject line that you've got a question thought or you wanna share success in Firestone Email? All right. Well, we go to the phones. That's what we do. So I'm going right now to Minnesota. And I got Lisa on the light Lisa. How are you? I'm good. How are you? Chris all I'm focused and not finished young lady. How can I help you today for my husband? And I started the financial peace university class in January. Okay. Thank you. Yes. Currently and baby step two, and when we were lifting out our debts. We had listed are secondary mortgage on there. 'cause when we bought our home, we didn't eighty fifteen five and so that fifteen percent chunk we were as about forty three thousand and so we had lifted that with our debts, but the class that we had two nights ago for financial peace. It was on mortgages. And you had talked about adjustable rate mortgages to refinance them immediately. So my question is if we should keep it in our debt snowball and get paid off there or if we should refinance it and put it with her mortgage path and baby step six. All right. Lisa. Thank you so much for calling in never one. I'm proud of you guys for being plugged into financial peace university. That's fantastic. And I also like that you listen to my lesson on real estate. And now you're looking to act on it. That's a good thing. So. The eighty fifteen five now for people out there that are listening. That means you have an eighty percent first mortgage. You did a fifteen percent second mortgage and then a five percent down payment correctly. So okay. All right. Good. Now, the eighty percent mortgage. I just wanna make sure I'm getting details. Right. Is that an adjustable rate mortgage. No that one is not. Okay. So that's fixed. Yes. Okay. All right. So the payment on that one hasn't changed the fifteen percent that he lock right? That's a home equity line of credit also known as second mortgage. That's the one that's an adjustable rate. Yeah. Okay. That's typically a revolving line of credit, correct? I guess I'm not sure. Yeah. It means as you make the payment is the payment on an interest only. Yep. Yep. That means I'm a former banker. So that's exactly what that is. So that gave you that. So you're asking on this second mortgage. It's fifteen percent right now, you said it's around forty three thousand dollars. You have it right now listed on your debts no-ball as you should because it's a home equity line of credit. So that's. The right thing to do. But you all have been in this home. How long almost twelve years? Okay. So you bought this in two thousand seven. Yeah. Okay. And how much was it worth? Do you? Remember what you paid for it? We backed up home for around. I think it was true twelve. Okay. And was that how much it was worth? Did it appraise it to twelve I think it appraised actually a little bit more than that around twenty. Okay. That's what I was thinking it typically does have you had a recent appraisal on it in the last couple of years. No, okay. What do you think it's worth now? Well with having purchased our home and right before the down we lost a lot of value and finally eek in our way back up. We have made changes to our home like we put in another bathroom downstairs. So we haven't had it appraised since then. And I would think at least two hundred thousand for worth I how big is the home probably around twelve hundred. Okay. Well, I can tell you this. If you bought it in two thousand seven and that was right at the whole time of the. Real estate situation going on. And you've been in there now for twelve years, the value has increased and so looking at this it white be worth getting an appraisal done to figure out where you are from values standpoint and appraisals can be anywhere from four to six hundred dollars. But I would start off with your primary lender that you have right now. Lisa talk with him that you're looking to refinance the deal is this do you? Remember your rate on your mortgage right now at four point two five percents. Okay. So you got a pretty good rate. It'd be worth giving them a call your current lender. You're thinking about refinancing your wanting to know where their interest rates are right now you have this on a thirty year or fifteen year fixed. We bought it as thirty. Okay, thirty. I definitely want you to talk with your lender about refinancing and looking at this on a fifteen year just to get an idea of where rates are and where the payment would be. But you're doing the right thing. Definitely keeping this. Home equity line of credit. This fifteen percent loan on your debt snowball. That's exactly what you would do. What are their dense? Do you all have right now? So essentially started a Tia we've paid off nine thousand. Yeah. Wow. Card, and yeah, I know of in Tim, months, Lisa. Yeah. That is what you all stop doing everything. Didn't you our biggest thing was eating out? And then just not paying attention to what we're sending and we totally are in tech. Now only have about seventy nine hundred left on a car loan. And then no other fantastic. So you guys are focused. I mean, not like that. That means you're making adjustments your line together and you're making decisions together. So contact your lender. Get an idea of where the rates are right now. And definitely talk with them about refinancing to a fifteen year fixed and that can be something. You get started as you all are attacking the remaining seventy nine hundred on a car. I'm proud of you guys you plugged into financial peace university, which is our nine week membership that gives you an opportunity to really plug in. And learn more about how money works those of you out there. If you have not done financial peace university, you need to get in there. I don't care if you just did it two years ago. So we are always adding things to it and giving you an opportunity to learn more. So it's fantastic. And the information is online it gives you an opportunity to really plug in and to learn. So this is a good thing. Lisa. I'm proud of you guys. I like that you're thinking I like that you all are focused forward, and you're making things happen. So great job. And thank you, very very much for your call. Okay. So a couple of things hold on. Let me talk to America for a minute are a couple of things here. Fifteen year fixed rate mortgage. This is the route to go with a mortgage if you're doing thirty year mortgage, you're gonna pay fifteen years too long for this. We don't want to do that. Right. So what do you do a lot of people are intimidated about refinancing your like HOGAN, y I remember all the paperwork. I had to sign on the purchase of the home. You'll have to do some sign in. But it won't be as much as when you purchase the home. And the bottom line is is if you've got a mortgage, and you've had it for four years or more rates have improved. So you've got an opportunity to potentially lower your rate. But I also want you to get onto a fifteen year fixed rate. Mortgage. That's the way to go. Don't do thirty. All you're doing is given extra money to the Bank or to the mortgage company. And we, you know, we don't need to do that. I'd rather your money be with you not them. So think about that stay on top of it and oh get the quote, call your current lender. All you have to do is tell them you're interested in refinancing. And you would like to get a good faith estimate on what a refinance would cost. So are you going to say they can send you over in ten minutes? Remember, you're not applying yet. We're just enquiring. So call them ask for good faith estimate. Have them Email it over to you. And you can find out if that's something you're going to do. And if you're going to do it, which you should if you've got a thirty year fixed rate, you will have to pay for an appraisal, which can be four hundred to six hundred dollars or more depending on where you are. But it's something worth it, especially if you end up cutting off fifteen years of the thirty year mortgage, and you end up not having to pay back all that interest. That's the way to go people. You know, I'm gonna shoot straight. All right. So it's now time for panic or pumped this is the. Of the show where I get a chance to coach people right where they are if they're feeling panicked. I'm going to coach him up. I'm going to give them some action steps and some tips that they can do to help themselves, and if they're feeling pumped, well, guess what we're going to celebrate and be excited right along with you because we all need encouragement, and we all need to be motivated. So let me go to the Email here. It is panicked from Daphne. She says, I'm thirty three my husband, and I have no savings. Our collective income is sixty four thousand I have three years left to finish paying for my car. And my husband just started paying off his car. The only credit card debt left is three thousand our parents paid our college. My problem is is that I never have any money left. And I'm feeling like I'm sinking deeper into spending. My husband is supportive. But I'm also supporting my mother financially, sending her eight hundred dollars each month to help her pay her credit card minimum also. Oh, started adding twenty five dollars a month toward an IRA. But it's not much. What do I do? Should I start looking for a second job in order to increase the IRA and to help with paying off remaining debt? Well, I can tell you, and I really Daphne feel that you're feeling panicked. You're definitely feeling of financial crunch right now. And I'm glad to hear that you have a supportive husband. That's a good thing. That's important. But I can tell you. I wish this was a phone call right because I've got some additional questions on some follow up. But here's the thing. I'm concerned about a few things a few things that you outlined here. I'm concerned about it. Because a couple of things the pronouns you say, I'm paying off my car, and my husband is paying off his car, and we gotta speak French here Daphne, and that is we right? That means we are paying off our cars. That's how you verbalize it. Because to say it any other way, it makes it sound like he's got his money, and you got your money. And that's not how it goes. When you're married, you got our money, and you begin to work together. So that's another thing that jumps out. My main problem is this and everybody all VIP VIP's out there listening. No, this is coming. I'm concerned that you're sending eight hundred dollars a month to help your mom pay off her credit card minimums, actually strike that from the record because that's the wrong way. You're sending eight hundred a month to help her pay her credit card minimum. Okay. And so I'm looking at this. And I'm going why are you sending your mom almost one thousand dollars a month? What are we doing here? I don't understand like she's not a dependent. This is not a thing. And I understand you may want to help your mom. But right now what you're doing is. You're hindering yourself, and you're not able to make progress for you and your family. So that there's no have to change. There's no reason for you to take on a second job when you're making money. The problem is is you're not allowing your money to stay with you. So couple of things need to go down you need to have conversation with your mom. Let's porn or in the right direction. Let's get her. Help she may need to take on a second job. Right. She's got to figure out what she's going to have to adjust in her life. And you've gotta take care first things. I it's just like flying on an airplane. They say if there's a lack of oxygen. What are you supposed to do, you know the little mask when it pops down? Thank goodness. I've never been on one where they actually did that. But at the mass pop down, what do they tell you to secure your mask? I before assisting someone else why? Because if you don't put your mask on you could pass out, and then you're not able to help anyone not even yourself so Daphne in this scenario, we got to have a conversation with your mom. Let's get her plugged in on everydollar as the best budgeting tool on the planet out there. It'll help her take control of her situation you can start to plug in. You know, first thing you gotta do you don't have savings at all. We gotta get thousand dollar emergency fund in place. You can do that by keeping almost that thousand dollars. Your Senator your mom that stays with you. And then you keep attack in your debt with the debt snowball. And then guess what you get after the credit card and the cars, and you have a conversation with your mom to be able to. Her get aligned, and I'm gonna tell you what I'm gonna do Daphne. I'm gonna send you both financial peace university. That's my gift to you. Because in this scenario what we all gotta do strive to get better. And that's the first step. And so I want you to do that. Now, if I give this to you, and to your mom and your mom's not gonna go then that's fine. I want you to find another friend to gift it to. But again, I want you to secure your mass. I and I understand you fill in panicked. But I want you to be able to get better Daphne. Thank you so much for that Email. I appreciate that. All right next up. I've got up pumped Email this is from Emily from everyday millionaire. Facebook group love that group there on fire. Boy, they do good stuff. Here's what Emily said. She goes our Smartvestor helped us and gave us some advice with our current situation. We invested are full fifteen percent into a TSP, which is simply just the thrift savings plan. That's the federal government's version of 4._0._1._K or the military's version of a 4._0._1._K. So they invested fifteen percent of their thrift savings plan. She goes we started our contributions immediately ready to start baby step number four. We crunch the numbers. And here's what we found out. We're currently in our mid twenties, and we're going to be everyday millionaires before fifty she goes, we're so thankful that we found the baby steps and we love staying motivated with Christmas show. She goes thanks for showing us how to handle our money. We are so focused but not finished now. Listen here. Emily, you just make them proud right there. You got me grinning because that means not only did you do some work. You guys have gotten focused. I bet you went over to my website and use that network calculator to write to help, you know, where you stand I'm gonna tell you all little bit more about that here in a minute. But Emily, I'm very proud of you all you did a couple of things fantastic. Number one. You're plugged into the show which always going to give you bonus points. Number two, you're into everyday millionaire. Facebook group more bonus points. You're smart you're on the ball. But then you went to meet with a Smartvestor pro. That means you. Found somebody that can guide you and help you and your financial situation that's more bonus points, and then you actually got guidance and went and did it what how you all our own fire. So I'm proud of you, congratulations. Keep up the great work the path you're on. You're absolutely right. You're going to be everyday millionaires. There's no doubt in my mind. You know, why? 'cause you're focused, and as you said, and you're not finished. So congratulations to you. Now. Listen, if you're out there, and some of you are like what Chris I'm I'm filling panicked or Chris. I'm feeling pumped. Well, then let me hear from you. If you're feeling panicked or pumps innocent, Email, ask at Chris HOGAN, three sixty dot com. Put panicked or pumped in the subject line. Send it to us. I want to read it. And who knows we may just get to yours on air at some point in time would love to be able to hear from you. And so again, you're not alone the goal for this show is for people to be empowered to know the steps to take. But more importantly, this is about community. You see this money stuff is real. And if we don't have guidance, we can fill alone, and I'm gonna tell. Are you something alone is not a good thing? Not when you have resources available. They everyday millionaire Facebook group, it's fantastic. I'm gonna tell you more about that a little bit later, but you have an opportunity you're not by yourself. And guess what? Where you are. Right now does not have to be where you end up unless you quit, and we all have an opportunity to improve. So all right. I gotta get back to phones because I'm going out to Seattle here. I've got my friend Christian on the line. Hi christian. How are you? I'm doing good. Chris. How're you doing buddy? I'm focused and not finish. How can I help you today? Well, Chris actually just a couple of months ago. I completed my first year my new job, and I had a painting crease of pretty much a little bit over twice my salary from previous job. Whoa. Yeah. Yeah. Very blessed opportunity. My question is I'm not sure if I'm using that extra money and investing it properly. Okay. So you went from what to make in what I went to making fifty seven to one twenty. Wow, that's fantastic. Now, I'm not asking. You where you work, but what line of work are you in? I'm actually in accounting. Okay. Fantastic. Listen, that's a big jump. How old are you? I'm twenty six twenty six years old making a six figure income how much did you buy? My mom, my fiance ring cash and currently planning a wedding and pay cash as well. Oh that raise just found a new home didn't it. Yeah. It is honest. The rain had been paid off before. I got this job. I've been together for eight years. So I've been saving since the star. Okay. Good. You sit a word that's one of my best friends, and that's called cash. I liked that you paid cash for the ring. I like that you guys are going to cash flow and pay cash for the wedding. That's a good step. You're on the ball. I can tell you this Christian whenever you w income. That's great opportunity. Are you familiar with the baby steps? Yes. I am. Okay. So we're going to do that I'm between two and four because between my fiancee. And I we have about twenty four thousand student loans, and that's the only that we have. But I'm also setting right now where it stains. We have a couple of golden mind go if you want to buy a house next year, the market here and see. Atas pretty hot. So you know, that requires about sixty thousand dollars to one hundred thousand dollars of savings, and we're also putting fifteen percent into retirement. Okay. With that. We're still able to put about three thousand five hundred every month into our normal saving. Okay. Now, you got engaged when we got engaged last summer. Okay, wins the wedding going to happen November ninth of nineteen. Okay. Good love the mindset love what you're doing your familiar with the baby steps, which are not following them. Because with that what I would say is now do you have debt? I personally have the fifteen thousand dollars in student loan debt. Okay. You have the fifteen thousand then you said, she's got some debts or something right right combined. It's twenty four thousand. Okay, we're not combined and yet because you haven't said, I do correct. Okay. So she needs to get her debt snowball situated, but with you because that's who I'm on the phone with you can share that information with her but with your pay raise. I definitely won't you Christian to attack that student loan debt. Your income is just doubled. You've got an opportunity. So in your mind, what you're doing is is I'm paying the student loan debt. The fifteenth. Thousand get that thing paid off. You should have that paid off in a matter of ood, maybe three months, and that's scale and everything I want you to throw everything, but the kitchen sink added to hurry up and get it out of your life because then that payment that you were paying for that student loan now that payments, not leaving you, and you guys can redirect that and start talking about a home down payment. However, let me hit the brakes. You see what I did right here. Because what we can't do is. You can't start playing married until you're married. We all want to do that. And I tell you that Christian because I've heard of people being engaged, and they start collectively put money together and doing stuff, and then all of a sudden there's a break off. Right. And now you've got an issue. Now, you gotta try to untangle some stuff. So she needs to have separate accounts you've got separate accounts while you all engage once you get married, then you can bring those together, and you guys can start to do things together. If that makes sense, and it's really important and proud of you for Dublin your income but follow the baby steps attack the student loan debt. Then you need to go to baby step number three, which is to get three to six months of expenses saved up. We got a good income your accountant, so you can find work so three month. Emergency fund would be a fantastic thing to do then invest fifteen percent towards your dreams. That's the way to go. And as you are budgeting, then you can start to look at what you can save toward a home down payment, and she can follow the same thing if she's got debt she needs to her budget with everydollar, I mean, that's no brainer. And then you need to work on. Her death. And she can do an emergency fund. The other thing I want to say this don't let the market dictate when you buy a house. Okay. I don't care what interest rates are doing. I don't care what the market is doing. You. Don't wanna do that you buy a house when you get yourself out of debt. You've got an emergency fund, and you save up at least ten percent down payment. Now say at least ten percent, I prefer twenty percent because I don't want you to pay PM. I it's private mortgage insurance. It's about one hundred and fifty to three hundred dollars a month that goes toward the Bank. So it's on top of your payment. It's a waste if we can slow ourselves down. But Krishna proud of you. I love the direction you're on buddy. And I think it's important. I want everybody out there to take steps in the right direction. Let's keep making progress, buddy. So thank you again for calling in. I definitely appreciate your call. 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Get started today at wise, higher dot com. That's W is e e higher dot com. Okay. So I love sharing with you all thoughts. You all know me. And I remember back when I was in high school, I'm about to date myself here, but Janet Jackson had a song called control, right? And I'm not going to sing. And I'm not going to do that y'all because that would be an assault on your ears, and I'm not going to do it. But you know, bottom line is I'm gonna share with you this that did, you know, ninety seven percent of millionare's believe they control their own destinies Hm ninety seven percent of millionare's believe they control their own destinies. We did the research because remember those that a brand new. We did the largest research study that's ever been done on millionaires. We talked to over ten thousand of them right over ten thousand and we wanted to get to the truth about how did they build wealth? How did they become millionaires? And that's all in my book everyday millionaires. How ordinary people built extraordinary wealth and how you can't too. But this that came from this research, and I. It's important that when we look at our lives that we remember to control the controllables. Right. What I mean by that is we've got to make sure that if it's something I can control. Then I wanna make sure that I keep my hands on the wheel. I was watching a TV commercial year or so ago, and it was blown away because there was this car that would park itself. Right. And now we've got cars out there that'll drive themselves. And you know, what maybe I have control issues. Okay. Maybe I do. But I'm gonna keep my hand on the wheel. I am. Because why I wanna make sure I'm going where I'm supposed to go. Now, I'm not a control freak people. But I wanna make sure that the direction I'm going that. I'm connected to it. And that's why like what the hand on the wheel. I'm connected to the vehicle and where it's moving. Well, guess what? According to this research, the millionaires believed that too that they're in control of the destiny, which means it changes the game. Because see when you're in control that means that you get to decide, and I think that's an important thing for us to always remember. Sometimes it's easy to get mentally stuck and think other people are making decisions for you. And man, I don't get a chance to control my own life. Yes. You do. I mean. Yes, you do if you're working at a job, and you don't feel like they're appreciate you. Well, they may gotta speak up. We gotta find out what's going on. And if it turns out, they're not appreciating you you need to control your own destiny by beginning to look for another place to go work or beginning to look to make some improvements, and how your viewing it, right? But we get to decide, and I think that's so important for us to remind ourselves because we can feel as if other people are controlling our lives, and that's not the case. So we get a chance we have a choice, and we have a voice, but more importantly, we get a chance to take action. And so I won't shoot. Or no, it's important for us to remain in control. Because let me tell you some look I'm giving them the look those watching on YouTube. Look, I'm tell you something here. People will have opinions. Yep. They will you got family members. I know. Okay. I know you've got family members that have opinions. You got friends that will have an opinion. And the problem is is that people with an opinion oftentimes can get confused and think they actually have a vote. Well, that's not the case. Not in your situation. Not with your destiny, you get to decide, and it's okay to get wisdom and to get some feedback. I'm not saying that. But ultimately the choice lies with us. We get to make a decision, and when you're clear on where you wanna go you understand. I've got to remain in control. And I've got to make some decisions that lead me toward that destiny. And you and I know VIP's whenever you're chasing something down. You're also gonna have to sacrifice some stuff you have to give up some stuff. Yeah. We got to be able to identify that. But we get to make that choice as well. And so I want everybody to be aware that in America. This is the greatest country on the planet, and I'm completely biased because his own place. I've lived, but I don't need. A permission slip to do anything. I get an opportunity to make a decision, and I can choose to move in that path, and that's a beautiful thing because you can do that with your thinking you can do that with your work. You can do that in your. Parenting. You have an opportunity to decide, and I think it's not an accident that he's millionaires believe that they control their own destiny because they've stayed in control. And I think it's a good thing for us to remember and to remind ourselves, and so if you look at something and you want to make some improvements do it. And I love this. They through this graphic up and this head out on my social media in this is from Chuck, and it says I grew up in the projects went to public school and a state college with no student loans. I believe we within reason are the masters of our own fates. We believe we are blessed because of our giving and hard work. I like the master of the fate. Chuck, I agree with you. And by the way, Chuck's in everyday millionaire to he's got a one point four million dollar net worth right? So yes, we are in control. Yes. We do get to make decisions for ourselves. And you know, what we get to make adjustments to and when you are in control your destiny, some small adjustments. And how you view things are even how you deal with. Things are how you invest or you deal with your money, those small tweaks can lead to big gains VIP's. And so it's really important for us to remember that and don't ever give up your opportunity to decide because that's something you get to do. And nobody else gets to take that from you. So that's your did, you know ninety seven percent of millionare's believe they control their own destinies. So I need to hear from you. So I want you to do me a favor. Give me a call. If you've got a question or you want to share of success? Give me a call the number to call is eight four four two eight three nine three eight three again that's eight four four two eight three nine three eight three leave a voicemail and tell us your question. And if you'd prefer to Email, you can Email me at Ascot, Chris HOGAN, three sixty dot com and just put question in the subject on and just let us know. What's on your mind? Love to hear from you know, what's going on. All right. I gotta get back to the phones. Amanda is on the line. Amanda, how are you? I am great. How are you doing? Oh, I'm focused the nut finish Howard things than Texas these days. Well, they were bit windy last night. But we are calm and moving forward today. Fantastic. Well, I appreciate you taking the time to call in. How can I help you? We have a question regarding long term care. Okay. I am fifty eight years old, and my husband is sixty two and we have reached out to the Smartvestor 's. And also Zander to get some quotes on coverage and actual premiums and the coverage that we're looking at right now is about one hundred fifty thousand dollars per person so three hundred thousand dollars if we share it the premiums range anywhere from twenty five to forty three hundred dollars just for our specific scenario. And I wondered Chris should I sell for could I sell fund my own long term care policy by investing the money into a good growth stock mutual fund instead of actually paying those dollars to an actual premium. Okay. So again, just real quick. So you guys are fifty eight and sixty two and are looking at the long term care insurance. Have you ever sat down with an insurance professional at all? I sat down with a Smartvestor pro. Okay. Smartvestor pro. But you did not connect yet with an insurance. LP? I connected with someone from Zander. Okay. Okay. Good. So you did do that. And they walked you're doing gave you the premiums. Here's the thing. Amanda, we all know long term care that bottom line of that is having protection if we ever need assisted living or become incapacitated or or ill or things of that nature were thinking longer term. Let me ask you real quick. What do you all have saved up for retirement right now, we have about one point one million in retirement or God, our network is that one point five. Okay. One point five million. Congratulations told you everyday millionaire. I like that. We're. We'll. I love that. Now what baby step? Are you all on? We are on seven. Okay, fantastic. So you've worked to baby steps you own anybody. Your home's paid off your building wealth and saving in looking at this. As you look at those premiums twenty five hundred a year or forty three hundred year, it's going to be really depending on what the other benefits are with the long term care. So did you talk to Sandra at all about you sell funding? It I did not. Okay. That's what I would do. I'd call them back because here's the thing. Number one. You guys are everyday millionaires. You don't own anybody. Anything you're building wealth and giving so you've got access to it. What is your household income right now about ninety thousand? Okay, good or you both still working or have you retired fucking both so working. Okay. Well, that's what I'd do. I would reach out Zander talk with him about the self funding option because what they'll show you is kind of the benefits of you have in that policy in place versus trying to sell fund because it's going to take some time to build that up. Up. But here's the thing. Your everyday millionaires one point five million dollars, you've got money, and so again houses paid for so talk with him about it. You're in a fantastic position and proud of you and your husband for being everyday millionaires. But let me talk to America for a minute. So this is a question you want to talk to your family about you wanna find out for your grandparents or your parents? You know, is long term care is this something we got in place and never be life will happen, right? You'll have some things that go on. But we need to know what kind of coverage we have. And where is it? So in a time need, you can get to it. You understand kind of what's happening. And for those of you out there that may be an executor of an estate where you're the individual. That is in charge of things you need to know where these documents are it's important to be able to get to him. I tell people to either have him on a thumb drive be able to have access to it. So you can get some help right in the time of need. So it's really important to get those things happen in place and really. Be prepared. So Amanda, thank you so much for calling in. And I want you guys to get the right information. So you make the right decisions to be able to help you and your family. So very very proud of you. Okay, everyone. It's now time for today's burning question. See this is where we take a question or a topic that keeps popping up in the everyday millionaire Facebook group, and so I'll tell you more about how to join this group here in a minute. But I liked this group because they're on the ball. They are kicking things around. And so it's a lot of fun in there. But today's question is how do mutual funds and index funds affect my taxes. Okay. And looking at this whenever you are investing. You essentially are holding shares in a taxable account. Meaning that you have things that are moving up and down all the time so taxes money is moving right. If you have growth, then you've got some gains. If you have some reduction, then you have some losses. So you have that thing kind of going on. All the time whenever you're investing. But if you're in a situation where you are receiving distributions or it's being reinvested back in which is typically what happens in a mutual fund and remembered this mutual fund all that is managed portfolio of investments that are professionally managed, right? And so you've got this money here. Diversifies you and allows you to have growth, so you will typically get attacks worm end from your 4._0._1._K or four zero three b each year. Typically in January is about when you get those to be able to file along with the taxes. So yes, it does impact those, but as you're working with your accountant as you're doing your taxes, if you are cashing things out, right or you're doing some are MD's required. Mandatory distributions once you hit eight seventy and a half or talk about that here in a minute, but you'll have those things happening. So the good thing is is you wanna make sure that you're doing the right things with your taxes? You're getting the right kind of guidance. So a taxi Opie as somebody that is. You'll be able to help you you can locate those by going to my website, Chris HOGAN, three sixty dot com. Click on the dream team. But you can find someone right there. That'll be able to guide you as well as a Smartvestor pros that can help you with your investing. The key is is I want to get the right people around me to help me get to where I wanna go, right? I'm not in this alone. And so I wanna stay focused and be able to move forward. And do what I need to do. It's important. So thank you again for that question. That's fantastic. VIP's? You've heard me till you to get a fifteen year fixed rate mortgage, and there's a good reason for that. I want you to start off on the right foot. But even if you didn't you can still get back on track and kick that mortgage debt to the curb, I need you to look into refinancing your home, a super easy quick way to do this with a church ill checkup and just a ten minute. Call our friends at Churchill mortgage could end up saving youth thousands and ensure you're in the right mortgage for you and anyone can get a free checkup. It doesn't matter. Whether you close your mortgage with them, a Bank a credit union or even an online lender. Churchill can help you explore your options to save time and money, you might be able to lower your monthly payment or better yet. See how you can pay off your house early. You're ready for this. Get your free Churchill checkup today. Call triple eight loan two hundred or visit churchillmortgage dot com. This is paid advertisement. One five nine hundred consumer access dot ORG housing. Understood sixty one old hickory boulevard, Brentwood, Tennessee, three seventy seven. The IP's. I was reading the team is even reading Becky out for articles. And we're trying to find what articles make sense what's something. We need to get HOGAN route up about that's what they're trying to do VIP's. They tried to get me riled up. Sometimes and other times, we find stuff just wanna share with you this article comes from MSN. Okay. And here's the title of it this seventy year old nearly missed a key retirement tax deadline. Here's what he'd which he'd known sooner. Okay. And so again, this is from MSN and the bottom line is a lot of people don't understand that. When you turn seventy you start getting notices from your financial institutions where you have investments that it's about time to start withdrawing money now, they're called are MD's required. Mandatory distributions now for those of you out there you go. Man Hogan's talking about something at eight seventy saying anything to do with me. Hold on. Listen to me because not only do I want you to notice information. I want you to share this information. So you may have an uncle an aunt or a grandparent or somebody that's near that age. So you can talk about this with. That's what we do here. I want people to know information. And so when you have this you're gonna start to get notices that starting the year, you turn seventy and a half, the IRS requires you to start taking a certain percentage of your investments from your IRA's, your 4._0._1._K, your four zero three b so this is important for us to know. But remember with a 4._0._1._K, why do you need to know that you're going to have to start taking money out because you're going to have to pay taxes on that money. Right. 4._0._1._K's are pretax money. At means you put money in you had to pay taxes on it yet, you'll pay tax on it when you pull it out. So now, we need to know because this is going to impact the tax situation. So we wanna know. So if you don't know this, and you miss out or don't do it. Now. You've got to pay penalties are. So you've got an opportunity to get some of your money or you can pay penalties because you didn't. So this is key. So the IRS requires required. Minimum distributions. I think I call them mandatory because they kind of are mandatory. But there's some ways that you can make it a little bit less painful. And so what you wanna do is make sure you're doing the right amount and being very aware. So you want to know and be aware of where you stand in your goal when k where you stand in your IRA. But because you're Roth IRA's are post tax. You don't have to required. Minimum distributions. So remember, the RAM dis impact 4._0._1._K's IRA's anything that it's pretext posttax items, your Roth 4._0._1._K, your Roth IRA, you don't have that minimum distribution requirement. So it's good, mindset wise, just to know exactly kinda where you stand and what you're doing. And as always talk about this. You know, the things we talk about on the show. I want you to share with other. People and get connected to be able to inform other people. So you can know what's going on. So the IP check it out in the show notes. DWI? Also, put a Lincoln there to the original article where you can read that. But you can also send that link to a grandparent on or an aunt just to make sure that hey, are you aware of this? And then we're sharing the information which allows everybody to be able to grow. All right VIP's, Anita hear from you. If you've got a question or a success story. Call me the phone number is eight four four two eight three nine three eight three again. It's eight four four two eight three nine three eight three or just send me an Email the Email addresses ask at Chris HOGAN, three sixty dot com. I'm going back to the phone. I got a friend on the line here. I got Susan in Texas. Susan, how are you doing great? How are you doing Chris? I'm focused not finished. Thank you so much for taking the time to call in today. Right. Thank you. How much I'm looking forward to visiting with you. I appreciate it. So how can I help you today? Well, actually, just kind of wanted to share our story. It's kind of a funny, but a sad story. And you probably remember the movie groundhog day with Bill Murray. Do okay that was our life. Really? Yeah. So my husband, and I pretty much made every money mistake we could ever make. And it was just like, okay. You didn't do it. Right. This time you're going to relive it over and over and over again, she's until this. What are some of the things you all did what were some of your money mistake? My husband, and I got married them Levin years ago. Second marriages for both of us. So we combine two families. We had combination of four teenagers in that. But the biggest thing that we did is my husband had a home. I had a home, and then we decided to buy another home a bigger home would accommodate all for teenagers. And so we had three mortgages going on time. And this is all in two thousand eight and so, unfortunately, it took us awhile. So the other two homes, but with that, you know, we co-signed on a parent plus loan we purchased a new car that we shouldn't have done. We purchased a new fence for the new house, and it was just kind of one thing after another after another, and we let me go. Tremendous amount of debt. Let me stop for a second. So you had four teenagers three mortgages, right? Oh, my word like the stress level had to be off the chart. Oh, absolutely. Absolutely. And actually, that's when we kind of stumbled into Dave Ramsey because we were it was starting to impact our marriage marriage fights for getting out of hand. And it was like, okay. We've both been divorced before. We don't wanna do this again. So we stumbled into Dave Ramsey read his book, then went through financial peace. Then started coordinating, financial peace. We needed to have that less than over and over and over again ourselves Royds. And so when we finally started making better choices with money things started really turning around how so getting connected. Today's message getting plugged into eventual peace university you guys start making some changes were both on the same page. Yes. Actually, we were. Okay. Ron same page us a while to dig out of the debt and vile to, you know, pay off our mortgage, and we actually the irony of it is is we actually did get free scream on groundhog day two years ago. I like you did that Susan you just tied at all gather planned at all it just kind of happened that is fantastic. And so listen to me not only did you guys take care of the four teenagers and ended up dealing with the three mortgages getting plugged in to financial peace university. But you started turning some stuff from around and doing some things talk to me. Tell me what your net worth we at chimps over one point three million. Oh, oh, Susan. What does that make you? We are every day. I wanted you to say it out loud. I don't know if you've said that out low before that is fantastic. I'm so proud of you because you all story of when you all have done, I'm serious. I'm very proud of you. Because your story of what you've done is not only of the mistakes you made. And I wanted to highlight that because everybody out there thinks well, I mean, you know, I can't do it. You know, these everyday millionaires. No, they've done everything. Right. All the time. Nope. Not at all. We all make those mistakes. But the key is to learn from them, we only keep making the same ones over and over. And so that's what Susan and her husband did. Yeah. They took on three houses that same time. Right. Everybody knows we won't do that. Bottom line is they fixed it though. Right. So I want you to hear when these everyday millionaire share those mistakes when they make those errors I want you to hear that. I want you to learn from it. I don't want you to repeat that. But I also want you to hear the redemption story of what they did how they turned it around how they got focus and how they made a. Difference a change in where they are. And so it's fantastic. Susan. I'm proud of you and your husband. You guys are on the ball. And you're doing things the right way. Well, listen, I got another question sit in to me. And this is from lady she says, my husband serves in the military, and he's got some time left about ten years. We want to start saving so we can buy a house with cash where should we store the money? Well, it's a great question. And this for anybody out there that's trying to save for a home. I think it's really important for us to know anything you're saving for three years or less than you can put that into a money market account. It keeps them money liquid. It allows you to get to it, and you can take care of it. But if you're saving for something five years or more, I would look at using a gross stock mutual fund to be able to put that money in because that's going to give you an opportunity to be able to have time for that money to be able to grow so saving for a house. These people they're trying to pay cash for it. I love that. They're like. I didn't make it a house payment not up in here. Right. They're like, no. I'm gonna pay cash for it. That's awesome. If you're saving for three years, a less use a money market account. If you're saving for five years or more look at growth, stock mutual fund, Smartvestor pro will be able to walk you through how to set that up and you'll be able to identify. No as your statements coming in. This is where we stand on our home by and that's fantastic. And I love that question. And it's important for people to be aware of that. And to know exactly what's going on. Now. Listen to me VIP's, if you aren't a member of Hogan's everyday millionaire Facebook group yet you should be remembered today's burning question was from this group, they're on the ball. And I told you I was going to tell you more. So what I'm doing right now? This is a community of focus individuals that are on their everyday millionaire journey they are on top of it. I love how they get in there. And they cheer each other on they encourage each other to help everybody keep growing and moving forward. If you're not a member you need to check it out. All you have to do is go to Facebook dot com slash Chris HOGAN, three sixty. Click on the group section and join Hogan's everyday millionaire group it's gonna do. It's a great group. You can get in there. Talk about things you can get some encouragement, and I love that. Because as I told you VIP's, it's always and always about community. You're never alone. We have opportunities to get better. Well, listen, I want to thank all my callers. I want to thank my everyday millionaires. Facebook group, I want to thank my call screener. Amanda, I wanna thank my audio engineer. Bobby Bobby you are rockstar. Thank you. And especially I've got to think the man my producer DFW because he's always on the ball. And so listen to me until next time don't make excuses make progress. Before I let you go. Here's a highlight. From our episode next week people have this mindset of are fearful of missing out. So they feel like they need to do some things right now foam, oh fear of missing out. Then there's yolo you'll only live once you gotta be careful those because these phrases are also something I'm gonna shoot straight about the called excuses going to get a car buying a new set of golf clubs, and you got three already in the garage because those daily decisions could actually end up setting us back instead of helping us fast forward toward progress. If you enjoyed this program, we at Ramsey solutions have other podcasts you may enjoy to like, Christy rights business boutique, podcasts hand, Christy Wright. And I help women all over the country take their ideas, and passions and hobbies and turn them into profitable businesses. If you have an idea in your head or dreaming, your heart and you've ever wondered if you could make money doing it. I'm here to help. Join us on the business. Boutique podcast where we are equipping women to make money doing what they love to hear full episodes. Just search business boutique, and I tunes or go to business boutique dot com.

Chris HOGAN Facebook America Bank Lisa Daphne Susan Amanda everydollar millionare Zander Smartvestor Firestone Email accountant Minnesota
Don't Touch That Pension . . . Let that Money Grow! (Hour 2)

The Dave Ramsey Show

40:22 min | 1 year ago

Don't Touch That Pension . . . Let that Money Grow! (Hour 2)

"From the headquarters of Ramsey solutions casting, from the dollar car rental studio. This is the Dave Ramsey show where America hangs out to have a conversation about your life, and you're sitting in for Dave on Chris HOGAN, and I'm excited to be here with you this hour to be able to take your questions. Take your issues whatever it is. You wanna talk about that deals with your life and your money. We are here for you. But I need you to call us that number to call is triple eight eight to five five two two five again, that's eight eight eight two five five two two five or feel free to look up on social media. At Ramsey show. Some excited to have you America excited to dig into the things that are on your mind where I'm going to give you some straight answers on your questions. And so I'm going to jump to the phone lines. I've got Stewart on the line in Kansas City, Missouri steward. How are you? Doing wonderful. How are you today? I'm focusing not finished, my friend. How can I help you today? Well, Chris, I tell you what, I got going on here is I have currently have job, but it is a union job that work comes solely based off of seniority and not it. And whenever whenever I can more it does pay quite well. But the problem is, I'm so into new order that business coming going, you know, I might be working two days a week back to as a week, which isn't making a whole lot of money a while, and I recently got a job offer for my company that I did work for about four and a half years ago. But the downside to that is it is going to be like, an eighteen thousand dollar, pay cut from whatever anymore, console time at the job, I'm at now, but it does come with the peace of mind having hit the Monday through Friday, regular hours, where the job, Matt now, does not Stewart. But here's the thing, you're not fulltime on the job. Now. Right. Yeah. And actually I just got called yesterday. I got called back fulltime. It was kind of one of her. Good news towns. It comes they got that job offer to other company, and then I couple hours later got callback on the I was going to full time again. Okay. So with, with this, though, but again, you say it's based on seniority, so you may get work a couple days a week. Right now be working fulltime. But in depending on how business goes it could be a week. It'd be for a month ago it'd be for year and a half. Okay. What line of work are you in? I'm actually in railroad railroad. Okay. And so, look at this, how long have you been doing this job where it's, it's hit or miss like this. Well, actually I finished training last November. And I've been been back and forth like this since then, so. Okay. And how so what are you doing? You just got a good savings account. You just. Well thankfully, my wife has got us following Dave's playing pretty well. So we are debt free, except the house. We've got a twenty four thousand dollars emergency fund, and with what we what I have been making. We're gonna the railroad we've been able to get by. We haven't been able to really beat up emergency fund, or outside of what they automatically. Take out of my check haven't been able to put away for retirement, Jim. How old are you all? I am thirty three and my wife is thirty two. Okay. Do you all have kids, we have one child? Okay. All right. And so looking at this, you're looking for something that's going to have a little bit more stability. Right. Right. Okay. And so now it's the juxtaposition of the two things, what you're doing right now, isn't real steady for you. But it pays better than than what you could have. That's a little bit more steady, I think based on kind of where you are. I'm gonna look at this and sit down with my wife and really start to talk this through. If you, you know, the how long will you have to be on this job before you move up the seniority ladder to be able to have a little bit more stability with the work. Well from what I've been told most people say, five years, but what some of the guys, I've been talking here recently with what's going on currently with company they're talking maybe ten. Okay. And so with this other job you're saying, there's an eighteen thousand dollar pay differ. -sential. Current. Okay. I do listen to me, Stuart, I'm looking at this, and I'm going, I'm gonna either a look for another opportunity. That's in there with other companies out there. But I don't think it's fair for you to be in limbo for five years, waiting for the scene Yordi side to be able to kick in, you know, the bottom line is time as money and you guys are looking to kind of grow forward and built for it on the baby steps. So I'm gonna go with something a little bit more stable and that I can rely on. But then at the same time you start to look at your skill set to figure out is there an opportunity for you to do something else on the side. Now, all of that means I'm not stopping my look or my drive, or my climb, but stability is going to be important. And I think you know, you and your wife walking through and looking at the pros and cons of this. I think this ability side is going to allow you ought to make more progress knowing what it is. Because I mean, if you're getting a work a couple days a week and then you might not have anything for seven to ten days that sporadic and. I don't think that's anything you can count on. So again, I'm going to look at it. I'm gonna walk through it. I can either stay where I am. And then take on a part time job that's going to give me some flexibility in the evenings or times that I'm not working or I'm going to take this job that's going to be steady and consistent. And then I can work on the side as well that's going to allow you to push through and make progress on these baby steps. So thank you for your call, my friend. That's the direction I'm gonna go because I'd like dealing with knowns unknowns. Make me nervous. I wanna know what I'm dealing with. And what my target is. All right back on the phone. I've got Stephanie in Kansas City. Stephanie, how are you? Hi, chris. I'm doing well thank you. How are you? Not finished. But I'm ready to help you what's on your mind. Well, my husband and I are in baby step two we have about sixty eight thousand dollars in debt still we have a, an annual take on pay. Well, take them pay. But our salaries are one hundred thirty four thousand a year. We're struggling with cash fall into kiddos in daycare right now. So you can imagine, but we have a vehicle, it's kind of nickel that we ship our children around and then the mommy mobile, but it's got about a twelve thousand ten dollar note on it. And we are just really not able to get our or struggling with trying to really get our snowball going no-ball going and trying to pay off as much as you can. But what we were thinking of grain was we possibly refinancing this auto note to a lower interest rate right now. It's at five point nine nine percent and interest rates. We might be able to get it a little bit lower or even decrease the payments that way, we could take the difference and put it towards are smaller that to kinda get that going more of at wanted some input on this because, you know, thinking of the fact that most billionaire stopped taking out loans, that's in the back of my mind. So this winning some help with that. So, again, the sixty eight thousand in debt break that down for me. What are you all on? So we have no credit cards. I have about twenty a little more than twenty thousand dollars of small at broken up into, you know, sows in dollar two thousand minutes five and nine thousand dollars student loans after that the twelve thousand it's the car note of tall thousand six hundred and then unfortunately, we, we did take out a home equity loan. That's about thirty four thousand. Okay. All right. Yeah. So you guys have an array of debt, I want you to hold on the line. We're going to go to break, and we're gonna come back, and we're going to dig into this situation because she wants to know, do they refinance a car loan to try to drop down a few percentages to try to fix this or do I have a better solution? I got something else. They need to do. And consider, we'll talk about it when we come back. This is the Dave Ramsey show. Hey, folks, cut the cord on long term contracts and save big on your monthly bills by switching your cell phone service to peer talk USA. I'm a huge fan of these guys peer talk USA has the same great coverage with half the price of other brands and no contracts. Twitching to talk is a great way to save money and stay on budget. Try it risk-free today. Visit pure talk, USA dot com or call eight four four eight six to thirty six seventy seven. Enter promo code Ramsey and receive fifty percent off your first month. That's pure talk, USA dot com, promo code Ramsey. America. You are listening to the Dave Ramsey show. I'm Chris HOGAN, filling in for Dave, and before we went to break, I was talking to Stephanie and Kansas City and she was walking through a scenario. They're wondering, do they refinance a car loan as something that is necessary or do they just begin to kinda dig in and get serious? So Stephanie, tell me this. You've got two kids. He told me. Right. We've got three total two that are being that are in day care. Okay. Gotcha. And what ages two and four. And then twelve almost thirteen okay? Alright so not very big and this vehicle that you owe twelve thousand six hundred dollars on I'm gonna go out here on a limb. And guess as a minivan s suburban. Oh, okay. You went tougher. Are you gotta suburban? All right. And so. Oh, twelve thousand and the interest rate, you have on that, that suburban is how much right now. Point nine nine percent. All right. All right. So let's this pause there for a second. And you told me your household income is one hundred thirty four. Okay, and you look at this and you said you've got two kids in daycare. How much is that per month, fourteen forty among okay? And you both are working outside of the home. Okay. All right. So looking at this with the debt that you have got the vehicle. The home equity loan you, you told me you started telling me about how much did you all borrow against the house. We started with thirty six thousand paid down to about thirty four. Okay. You started with thirty six. What, what did you take this home equity loan out for? And so we did some home improvements on the house. He paid off. Some rarely some small credit cards, predominantly doing work on the house. Okay. Gotcha. All right. And so looking back on that. How do you feel about this home equity line? You know, actually it improved our overall value of the home. So if we needed to really just get out of it, we could, so we'll have some extra. We, we go if we were to sell the house, we'd have to pay that loan back, plus don't have some left over to take and put towards other things. Improve of the home. We had a lot of citing issues, we had a put on, we had some windows place. We put foreing and. Small little. Let's see countertop retu-, you know, tainting countertops and whatnot. So yeah, it's really not that we made it a long way. Looking at this, you know, looking at it a home equity line of credit. It's like picking a bit credit card against your home. Okay. It's alone. We didn't do the line of credit that we so it's actually more like a second mortgage. Then. Exactly right. That's exactly. Well, a home line of credit is a mortgage, most people aren't aware. See they don't market it that way. So just telling you so looking at this, I'm gonna say this, if you all how serious are you all on a scale of one to ten to get focused on your money? I'm a little bit more focus than I think my husband and he tries to real van if it were me, I be about a ten. He's more about a six seven on in the sense that he's not willing to part with his truck. Does his truck up dead on it? Now that the suburban side effects that we're talking about. So this is the vehicle that you drive, but he's in love with it. Yeah. Okay. All right. Well, that's the thing I'm gonna tell you, I'm if not selling it 'cause I'm always looking at something as an option because I know stuff is just stuff. But I think you guys getting intentional with the income that you have. I'm not trying to refinance this thing I'm not gonna play the game and pay the fees of the refinance at the Bank or the jumping through hoops, what I'm gonna pay his pay this loan down and pay it off. Okay. And so, again, titan in the budget. Yes, you've got daycare, which is a very real expense and allows you to be able to work. I get that. But then walking through this with the student loan, okay? The car is this, this suburban is the smallest. Okay. Then you've got the twenty thousand student loan debt. Broken out of the smaller, we have we did. We saw the, the recommendation by David freaking it down into so we've got multiple smaller one. I've already paid off to two and a half loans at this point. So I'm doing something, but it's not it's not an entire twenty it's compiled of a couple of days. So breaking that out looking at it as you've been using the debt snowball approach smallest the biggest, I think you continue on this path that you're doing, I'm not gonna waste time trying to refinance this thing I'm gonna pay it off. And I'm going to own it, and what you and your husband pinky swear that we're not doing car payments anymore. Like I want you to just grab both pinkies and say, we're not doing his aim more, okay? Because HOGAN Mike just show up at your house. I'm not gonna show up but you get my point. It's that kind of stance that you have to take to able to say I'm not doing this anymore. We got three kids. We got a twelve year old a four year old and a two year old. We got. Kids, we wanna do stuff for, and I'm not getting caught up in stuff, Itis, any more. I'm gonna take a stand. And when you do that you guys can make progress. You've got a good income. You've got some focus. Now. What you need intensity. You say focuses where you look at something your dentist, and you see it for what it is. And tencent is where you start to do some stuff about it. And I think you guys working together and you can and you have right. You might be at a ten intensity level and your husband's at a six or seven. Hey, you can get some stuff done there. And you know how you start tapping into your dreams you start thinking about the things you want to accomplish for yourself and your kids, and I'm gonna take you something stuff starts to come into focus and you start to realize, you can run faster and you can do more. Thank you so much for the call. Stephanie, I have courage that you can make this happen. You just need to apply a little bit more pressure and I'll allot more focus. Thank you. All right. I got Glen and Iowa on the line Glenn. How can I help you? My phone call. Yes, sir. I. And if a situation for my wife, and I, we just had her first baby three months old, congratulations. Hey, recook financial peace class last year round August-September. Okay. We hit the decimal pretty hard like six straight months and got rid of a lot of student loans. Okay. We got a lot left is the problem. How much is left do alone debt, we got about seventy five thousand dollars left. Okay. How much did you guys pay off? Oh, probably twenty five. All right. And we now were wondering kind of Pol the baby steps snowball, even my line of work. I like a little bit more of a cushion, if you will in our emergency fund already the deputy sheriff here. Okay. So we've got about four or five months worth of bales saved up in a savings account. Fun. My question is, I've got about seven and a half years in my pension and cash out right now. It'd be about forty two thousand dollars total debt. We got without our mortgage is about one hundred twenty five hundred thirty thousand dollars. My question is should we can't out my forty two thousand dollars pension cut our debt down by almost half or third? I guess, and really use that the debt snowball in once we're debt free use and hit hard with Roth IRA or what should we do? Or just keep doing what we're doing. Okay. Glenn now. You told me my friend, I hear your question you told me you've got about seventy five thousand leptin student loan debt, and then you said, you got a hundred and thirty thousand in debt outside of the mortgage wh-. Where's the other sixty thousand in debt? Oh, we a couple of cars an infant medical bills. Okay. In the car is that is about how much. About thirty. Okay. All right. So looking at this, and you've got the money set aside. How much do you all have set aside for for retirement total right now? With my forty two thousand. We're right. Sitting about sixty fifty five thousand okay. And what are your ages? We're both thirty. Okay. All right. So looking at this, you guys have an array of debt, don't touch that pinch. Glenn. Look at my face. Look at me. Okay. Don't leave it alone. You're going to have penalties and fees. And you'll have a whole lot of drama, uncle SAM's gonna wake up and go Glenn decided to tap me on the shoulder. No that money is there for your future. I want you guys to stay focused dig in keep doing what you're doing take on extra jobs, if you have to, but don't touch that money that money for the future, my friend, and you've got plants and you've got dreams you can make it happen. Keep working the baby steps, stay focus. Let that money grow. This is the Dave Ramsey show. Christians have an affordable incredible way to meet their overwhelming healthcare costs. It's Christian healthcare ministries. The original health cost sharing ministry, a Better Business Bureau accredited organization. C H members share to pay each other's medical bills. It's not insurance. It's Christians financially and spiritually supporting each other. It's what Tim has done for over thirty five years. Learn more at C H ministries dot org. That's the H ministries dot org. Christian healthcare ministries is a proud sponsor of Dave Ramsey live events. Hello, america. You are listening to the Dave Ramsey show. I'm Chris HOGAN, filling in for the big man, and we are taking your calls on life and money. And we are having a blast. So here's the deal. The phone lines are jammed up but I still want you to call the number to call is eight to five five two two five again, that's triple eight eight to five five two two five, and also you can find us on social media at Ramsey show. Can I tell you something that never gets old is meeting people out in the lobby that tell me about their journey, when they're attacking and paying off debt? I got some friends that are in town coming through from Ohio, and they were telling me that, hey, they not only were focused than help into attack that, but they were also financial peace, university coordinators. And these are coordinators are people that are helping other people walk through the course of financial peace university. And if you're new to the show, what financial peace university has nine week course where we begin to help people to. Understand how this money stuff works. Dave Rachel and myself were guiding people in teaching them on budgeting how to attack debt, how to be able to save how to be able to build wealth. She can do the greatest thing you can ever do with money. And that's give and so if you're in a position out there and you say enough is enough. I'm ready to turn around my financial situation will then guess. What? Financial peace university is for you. And I want you to check it out. I want you to get plugged into it. You can go to daveramsey dot com and find out about financial peace university, it's easy to do, and it's time, you know, people are working so hard, people are out there working hard day in and day out. And unfortunately, if you don't have the right plan, you're working, but you may not be making progress, and there's nothing more frustrating than to be working in thinking you're doing something and not be making the kind of progress that you want in your life. Let's make this year the best year financial you've ever had and so you can get. Plugged into financial peace university to, to help yourself. But here's something else. You can also coordinate a class to be able to help and guide other people because people need encouragement. That's Dave has this show to be able to answer questions and deal with this. So we can all get on the path to move in toward financial freedom. So we have an opportunity to not only take care of ourselves, but be able to help our families, so it's a big deal. And so, I want you to know you can do this. Don't hesitate anymore. A lot of people. Tell me Chris, you know, I wish I would have done financial peace university sooner. Yeah. You and me both, you know didn't know about it at that time. But running into Dave's information about fifteen years ago was a game changer for me. And I was working in the banking industry. Right. I supposedly knew about money. No. I didn't write. I didn't have a plan, so financial peace, university is that plan, and congratulations to my friends that are visiting out in the lobby. I'm proud of you and your journey. All right. I'm back to the phones. I've got talk show in Fayetteville North. Allina tasha. How are you? I'm doing good. He so I'm focusing not finish lady, how can I help you? Because I heard you guys talking about the student on earlier. And I have two children that are well, they're young adults that are entering college in the fall, one have already completed school one year. And so we took out a parent, plus mount he told the private school and previously had taken out, a parent, plus mouth on my daughter to also finish because he had maximized for loans. And so we had to take a pair, of course loan. So that's always to plant plus loan. So we already taken out, and now my other son is getting ready to enter. So we're looking in both of them chose private schools to start in the fall, and both on private school, which we would have to take out. Pam plus loans. They can't for out eat. So I didn't save up for them for college when they were younger and also when they graduated, we didn't do much with scholarships and things like that. So we didn't take advantage of that. So. I think that's why I went onto the parent plus my own, but my husband is trying to get out of debt now. But with these parent, plus loans, they're causing us to be more in debt. And you know what I appreciate you hit the nail on the head Tauscher. Because a lot of parents end up feeling that guilt, and they end up rationalizing taken out, these parent, plus loans. And because you think you're doing your kids favor. So looking at this before we even dig in on that how much is this private school how what's it cost per year? Almost forty thousand or so it's forty round forty thousand for both of them. So tell me this. I'm gonna shift real quick. And as a reason for one of them, and other one is about forty thousand two. Okay. So how much and plus loans, have you all taken out thus far? We've taken out. A seventeen twenty two so it was like already thirty nine thousand already Milas Paul's here. And let's go to you and your husband situation. How long have you been married? Six years. And what's your household income? Okay. And what kind of debt do you all have break it down for me? Ham has much debt heat his own, like about twenty thousand but for me, I did have went to a private school, too. But that's what I'm trying to tell my children. Hey, you know, go to something way sport -able where you can go and. Yeah. No one told me. Oh, oh, you come at total debt. We have student loan debt, how much student loan debt. Do you have? On that we have I have one hundred sixty seven thousand four hundred dollars. I'm sorry, I blacked out a little bit while you were talking right there. Tell me that number again. And sixty seven thousand. Four hundred eleven dollars thought you told me. Okay. All right. So that student loan for you. You said your husband's got twenty thousand what is the twenty thousand on a vehicle? What is it? Eighteen thousand going on his what else is that it? Alone yet. Okay. Keep going, you got credit card debt waffly how much back on Smith. Everything's like three hundred seventeen thousand six hundred twenty five dollars, how much mortgage to okay? How much is credit card debt? Headed hard dead is probably about thirty thousand right? So look at it this tasha you have one hundred sixty seven thousand four hundred and eleven reasons. Why your kids need to wake up and look at this scenario do you follow me? See he you've walked through this. You've lived this. You have the souvenir of student loan debt, that's hanging. That's, that's driving you insane. Let's break that cycle. Okay. The school that they're going to going to save the day, it's the quality of who they are. And what they're standing for what they're going about. So we want you to help in this, like, whatever you signed on for you've signed on for it for this for this upcoming semester, because I know the ink is dry that paperwork is done. But here's the deal, they're going to have to get focused on looking for scholarships and grants if they want to be there. This is not this is not something that, that we wanna pay it forward. And I say this what the that kind of. Attitude. Because so many people believe the school you go to is going to save the day. And it's not if anything, what it's going to do is 'cause the lay it delays people to be able to follow through on the baby steps to get intentional. And so, again, young people, I don't expect them to know, but parents, I want you to be able to be real with them and again with what you have going on. No. Because all your kids are going to do is continue down this path at gotta continue. Now, you and your husband, you all got an appetite for debt and we're gonna have to kinda kick that to the curb. Right. And we've got to be clear and also want to encourage you and challenge you on be careful with your pronouns Russia. You said, he's only got twenty thousand and that you have no, no. You gotta pronoun problem, we right speak. French, we you all you said I do it means. We do you guys are dealing with this together. And I tell you what I'm gonna do I'm gonna push you a free gift your way and I'm gonna send you to financial peace university, and I want you and your husband to go together because, yes, you've got a big chunk of. Student loan debt hundred sixty seven thousand but it can get fixed. But only if you fix it. There's not a government program. There's not anything out there. There's going to save the day, and I want you to hear this because when we decide to stand up for our selves, we get our own Kate Bon America. And we begin to realize that, hey, we can take charge of this and at ain't gonna be easy never set that, but it will be worthwhile. So tasha we're gonna send you financial diversity. I want you and your husband to get in there. But I want you to have a conversation with your young people ASAP, so they can wake up and look at this and have a different opportunity moving forward, half the conversation. You wish someone with a hat with you? This is the Ramsey show. Hello, america. You are listening to the Dave Ramsey show. I'm Chris HOGAN, filling in for date and boy, we've had some fantastic questions. Absolutely love it. If you've got a question about life, or money calls that number to call is eight eight to five five two two five again, that's triple eight eight to five five, two two five or look at us. Look up on social at Ramsey show, but I've got a question from Sandra on Instagram, and she says, I'm sixty four my 4._0._1._K has ordered thousand dollars in it. I have no debt and I own my home. How do I disperse this money to give me an income without bearing the brunt of a huge taxation, Bill? She says she's being told that if I take anything out, I must take it out all take all of it out. Well, Sandra, I don't know. Who told you that? But that's incorrect. And so now what you're looking at his you've accumulated some wealth now. It's about looking at how to disperse it, right? How do you begin to be a cumulate, and I'm gonna tell you in Walkin through this, and I like that? You don't have any debt that you're you own your home. Now it's a matter of maximizing this and making some right decisions, and you'll hear people out there arguing about what percentage to pull out each year and all that, you know, listen, the bottom line is this money needs to last for you. And so you've got up shin. So the best thing to do is to reach out and to get guidance from people that do this all day, every day. And that's the Smartvestor pro. And so I won't encourage you, I want you to go to Chris HOGAN, three sixty dot com. You can click on the dream team button, and locate a Smartvestor pro in your area or you can go to daveramsey dot com to locate a Smartvestor pro as well. The main thing is, I want you to gather up all your information and go sit down and have a conversation. There's nothing wrong with getting guidance. Right. We do this all the time with our health, we go see a doctor with a car trouble. We go see 'em mechanic will guess what with your financial future, like you need to see someone that can guide you so. Sandra. Encourage you to go have that conversation and again, people, we don't want to wait, right? We don't wanna wait out there. We wanna get guidance and get the right information because this is our future were talking about this is serious business, as if you'll take a car in because it's making a knock or ping, you guess what? Your financial future is bigger than that. So go talk to someone again, you can find out by going to daveramsey dot com slash Smartvestor to locate someone near you, or Chris HOGAN, three sixty dot com and click on the dream team button. The main thing is, is it's your future, and we need to take it seriously. All right. I'm going back to the phone. I've got a Livia on the line from Nashville Livia. How are you? I'm great. Thank you so much for taking my call. Welcome. How can I help you today? Well, I haven't investing question for you. My husband and I are on baby steps four five and six. I am self employed. I have like a little business, and therefore, I don't get a 4._0._1._K no chance to match anything like that. I currently have a Roth IRA with about fifty thousand dollars in it, and I've been looking into a step IRA, and I was wondering what your thoughts were on that make sense to keep contributing to that Roth IRA and keep making it bigger or if I should start up with that set set by Ray? Live you how long have you been self employed? About five years for years, what line of worker you in. I'm in fitness industry. Okay. Fantastic. Are you enjoying what you're doing? I love what I do is a good thing. Now, how much did you tell me you have in Roth right now? Got about fifty thousand. Okay. So you've been buf- been intentional with investing. Yes, I love that. And is your husband self employed as well? He he's, he's kind of mixture. So he's employed. And then also self employed as well. So we're artists, and all of that dot EU. Okay. So looking at this, I okay, top tell me do you have your own baby steps four or five and six? So I just need to clarify, you don't have any debt do you Vero? I like that. Are you a homeowners yet? We are we still have about one hundred fifteen thousand right now, we're paying about double at a month, just to try knock down the house, but we are looking into buying our next house, which I you know national very expensive. So we're trying to, you know, get as much as we can with the house, though. I like that. How old are you all? I am twenty eight and he is thirty five you guys are, are really being intentional. Where did you learn about money? We'll his father's actually any financial advisor. And my father's been telling me about investing for a long time. And so that's sort of why I'm you know, looking into this type buyer a and I'm trying to figure out how to do these things up. That makes the most sense. Well, I'm gonna tell you something you, you, you be should've thank them because that information has definitely paid off for you. All as you've listened, and you've been applying it, you know, to be twenty eight and thirty five years old, and already have a significant amount in the Roth IRA. That's a good thing. A set is something where for a self employed person Livia, it's their version of a 4._0._1._K and being something -ployed you can do up to twenty percent of your income into a set. So it is definitely something for you to take a look at to be able to start to intentionally invest in so you continue to grow the money. Okay. So I like this. I like it as an opportunity. There's also a couple other things there's a solo. Oh, 4._0._1._K that you can look at doing as a business owner, and there's, there are myriad of options. Okay. So the main thing is to get connected with a Smartvestor pro and sit down and really begin to talk through these and I think you and your husband, both going would be really, really helpful because you all together are making the decision and you can walk through it. So I think the Sep it can can definitely be good thing for you because we tell people at a to invest, fifteen percent of your household income for the future. Okay. So I like that. But I gotta tell you something. Can I give you some information? Can I give you some advice? Okay. This next house that you guys are thinking about buying. This house is going to determine how you guys continue to move forward in these baby steps. Okay. And what I'm saying is you all are younger, you're being successful. You're, you're making a good income this next house. I want to caution you, please don't over by. Okay. Don't over by what I mean is, is be intentional what you are interested in spending. I don't want you to go over twenty five percent right? Of a mortgage payment, but don't rely on the Bank or the mortgage broker to tell you what you qualify for. Okay. Because it harder Nashville isn't it is it really is. And so guess what? You don't have to buy another house. I want you guys to look at the parameters and establish some rules and some guidelines that you're going to work within. And guess what? You don't do anything till you find the one like just slow down. And I'm telling you this from my own experience where I've made the mistake in jump the gun and just because I. I was making a little more, I did more. And then I felt like well, then I need to do this, this, and the next thing you know, you looked up, and I'm living someone else's life like I'm not doing what I need to do for me. And so I want you and your husband at this position you're in right now to prioritize. I want you guys to do something Livia, I'm told me people about this, I make two year decisions what I mean by that is, I want you to make a decision right now that you guys will look back on in two years. And you're glad that you made that decision that's a whole 'nother level of decision making that you not looking at just the scenario you actually looking beyond it because you go. I want us to be set up to make a good move next. And so be very smart. Very intentional, but do me a favor. Just go slow because you guys are young and who knows when you're talking about trying to start a family or try to do XYZ, or your business grows. See, I want you to just kind of think, and then prioritize for yourself it keeps you in control. It helps you to understand kind of where. You on what you're doing and it. And it just reminds you that, hey yeah, this is our lives. Right. And so I'm proud of you for what you all have done. But I just wanted to give you that tidbit because I wish someone would have grabbed me back when I was younger and had a head full of hair. I did people, I'm telling you. I'm bald by choice. I all the hair I want. Well, that's not true. But you get my point. Bottom line is I wish I would have had some information to tell me not to listen to, to the Bank, qualify me. I think the Bank qualify qualified me for some unrealistic dollar amount back when I was looking to buy my first home, and if I would have done that luckily, at had the presence of mind, not to fall for that. But if I would have done that it really would have sent me back, even more financially so America, guess what we're going to stay in control. We're gonna start to be aware of what it is doing. And if you're out there, and maybe you over fought on home, guess what you can fix that to reach out to a real estate elp. E figure out the steps that take the fix it right. You don't have to stay stuck. Well, listen. I wanna. James Childs producer, associate producer Kelly, Daniel, and of course, you America because you had some fantastic calls and some fantastic questions. Thank you for tuning in. This is the Dave Ramsey show. Hey, it's Kelly associate producer and phone screener for the Dave Ramsey show. If you would like to your debt, free scream, live on the show, make sure you Bizet daveramsey dot com slash show. It registered we would love for you to come to national until date here story. Hey guys, if you're looking for real world, leadership and business advise from the top minds in business checkout, our entreleadership podcast. Hey folks can Coleman. Here would love to have you join us weekly as we dive into conversations with the top minds in leadership, and take your business questions to help you grow yourself your team, and your profits. Don't miss an episode subscribe to entreleadership where you listen to podcasts. Hates James producer of the Dave Ramsey show. This episode is over the check the episode notes for links to products and services. You've heard about during this episode. Thanks for listening.

Dave Ramsey Chris HOGAN America Dave Stephanie Kansas City Bank Livia Ramsey solutions Nashville Smartvestor self employed Missouri Stewart Jim
They Paid Off $161K in 23 Months! (Hour 1)

The Dave Ramsey Show

40:03 min | 1 year ago

They Paid Off $161K in 23 Months! (Hour 1)

"Live from the headquarters of Ramsey solutions. Broadcasting from the dollar car rentals studios at Dave Ramsey show, where that is Dom, cash is king, and the paid off home mortgage has taken the place of the BMW as the status simple jars. I am Dave Ramsey, your host. Thank you for joining open phones at triple eight eight to five five two two five. You jump in about your life, and your money. Don is with us in Orlando. Hey, don. How're you guys good? How are you doing better than I deserve? What's up? All right. I have unique situation and I gotta give you a quick rundown real quick. So basically, my wife and I picked up complete guide to money back in two thousand twelve and with disaster tent city guys ourselves out of debt to where we are currently now we just on our house for about five more years, good. We have a ten thousand dollar emergency fund saved up. Mhm however, as recently, I distracted with my master's degree, and it was based off of a two ish reimbursement program where I work, I'm a fire chief and I am also an instructor at the local college bring in about eighty thousand a year. Now, this is where it gets a little bit. Interesting. I've recently been offered a job with the federal government, where the pay is about one hundred ten thousand a year. If I take it I will not stayed with my organization, currently, the amount of time they require in order to take advantage of that tuition reimbursement. In other words, all of the money back. So much. I could it's about eleven thousand dollars. Okay. What I know but you make you make thirty thousand more year. One. I'll make thirty more year. Yeah. Also only have to work one job as opposed to, to. Okay. I have the money I have in my between my savings in my in my mind -mergency fund you should thousand dollars humor gency food we attend. Yeah my mom's defined right now. Okay. But you know between that and just my regular savings. Well, the first thing I'm gonna do try to not drain the emergency fund will your existing municipality not allow you to pay it off. Like over twelve months or something ninety days. Ninety days. Yeah. Right. You can almost cash flow it in ninety days. Yeah. I, I guess that's I mean you a thirty thousand dollars a year raise. That's twenty five hundred dollars a month. Yeah. Over ninety days, seventy five hundred bucks increased income, now, you'll have some taxes out of that, but your income has gone up twenty five hundred dollars a month. Okay. So I'd have to the numbers on it is there. I mean, if I have to touch the emergency fund all should it be completely off limits. No, I'm taking the job we're going to work this, but the emergency fund really should be used for emergencies. And I'm going to try to make this an emergency, okay. Because I don't want, you know what? I want to leave it alone. As my first option. My second option is in worse case scenario do that. But you ought to be able to cash flow at well over half of this during the ninety days, just Judy arrays alone. Plus, you don't have any debt. No. Okay. So that means you cash flow, even more of it. I think I think you just cash flow it. I mean what is it? Thirty. Thirty three hundred bucks a month. Is what you need. Okay. What happens if you pay them late? I to be honest. I don't know no one's ever no one's ever done that. I know of so so, you know, I can't pay it overnight as but I'll pay you back over four months, and okay. And just, just say, no, and see what are they gonna do? So you for thirty days. No. You know, but yeah, I don't I want you to honor the agreement that you made with them, which is to repay it. But, but let's do that in a way this wise. But here's the thing. Let's, let's say that you got within two thousand dollars. Well, yeah, you take that out of the emergency fund. If you have to, and then the next and the next month you put it back, right? But I think you can budget thirty three hundred a month and just do it. Okay. Because you got a raise of twenty five hundred a month. So when you were paying off debt, how much that where you're paying off a month. We, we hit really hard all student loans, and it was probably about fifty thousand dollars and we got paid off within a year. Okay. That's more than what we're talking about. That's four thousand bucks a month. Yeah. If you did four thousand a month on your debt, you can do four thousand a month with a twenty five hundred dollar raise on this. Yeah, yeah, this is making sense. Yeah, I think you just pay him and definitely take the job for sure. Sounds like what you wanna do your life, number one? But number two, is thirty grand more, and you work less. This life's good here. This is a good way around. Andrew is with us. Andrew is in Phoenix, Arizona. Hi Andrew, welcome to the Dave Ramsey show. Thanks for taking my call. Sure. What's up my wife and I moved back from to Arizona back in October of last year. And I started at my, my current place that I'm at and I didn't have health insurance. My wife had a. She basically passed out in a parking lot, and I had to take her to the hospital because she wasn't responding. They admitted her within three hours, she was completely responsive by pastor came, and we prayed for and and she started responding. But in that three hours day hooked her up there, ninety didn't number I did a cat scan. They could not find anything wrong with her, and the doctor came after about two and a half hours, said that it was stressed induced, go home and get some rest. And we said, okay, you know, and then two weeks later, we got a Bill for ten thousand dollars. So did you did you dispute the Bill at the time I try to dispute the Bill? They said the only thing they could do was was try to give me a relief on it, but I couldn't make more than thirty five hundred dollars a month. But now this is not an income issue. This is you did not provide ten thousand dollars worth of services. Right. And that's what we try to tell them they said, look, there's nothing really, we can do the other is the other thing too whenever they want to. They didn't remove. Freaking appendix. They put an hour in. But what happened is that we just found out over the weekend that this hospital declared bankruptcy and closed. Their doors are closed, and we haven't made any payments to them because they said look, if you don't make any payments like we'll just send you collections and my wife and I like, okay, fine. We'll just we'll make a deal with the collection agency. Then when it goes to collections and we'll try to make it you know, make deal with the men. But now that they declared bankruptcy and their doors are closed are what should we do? Now, should we just leave it alone? And somebody contacted or has that been forgiven because it was forgiving is not forgiven your debt to them as an asset of theirs, like okay like the furniture that was in the hospital. Everything that is an asset of theirs will be sold to someone that someone will be in touch with you, and you will have to settle with them. They likely will pay a nickel on the dollar for this though, which is going to help you to settle with them. And that's what we were we were playing on. I thought that that's what we're hoping to do that. We can probably settle settle with them like on a one time payment thing. The biggest problem is you're going to have some damage credit that's going to continue until you get the solved but other than that, you don't have a problem, you're going to have to wait and figure out who ends up owning this debt because you can't just pay it anybody you gotta pay. But all of their debts are probably, you know, hundreds of thousands of not millions of dollars of their deaths that are in collections and they will all be sold to someone a buyer that will do in trying to collect those debts the debt buyer will pay probably a nickel on the dollar for it, though. So, yeah, you're, you're gonna end up getting this settled in the future. Go ahead and deal with something up front and push push push and try to get something that's a fair amount in Glen, pay. But on this one play it out. This is the Dave Ramsey show. What if buying a house was like buying a timeshare a pressure cooker sales presentation with no option for a real estate agent to look over the contract? No inspector to uncover hidden problems no loan officer to review the terms you would never buy a home this way. But that's exactly how most time shares are sold. And that's stupid. If you're stuck in a timeshare. If you can't sell it if the resort won't let you out. Call timeshare exit team. Call eight four four nine nine nine exit or timeshare exit team dot com. Ryan is in Roanoke. Virginia. Welcome to the Dave Ramsey show. Ryan, how are you? How you doing better than I deserve? What's up? I was wondering if I should take out a loan to control. They all my credit cards. You can how much credit card debt if he got. About seventeen thousand dollars. Okay. And what is your interest rates? One credit card is four percent. And the other two are twenty and twenty two percent. Okay. What's how much what's the balance on the four percent? About eight thousand dollars. Okay. So half of it's at four percent. Have you been offered a consolidation loan? My Bank is currently offering a secured loan with an interest rate of three point six percent secured. I think you know, this secured by what? Secured by them. No secured loan has collateral that you're putting up something with a lean on it. Are they taking along on your house, a lien on your car? A lean on a Bank account. What it would be my husband. Okay. All right. And what is your income, sir? My take them income is about twelve thousand dollars a year. Okay. Why are you a student? I worked fulltime in retail actually, my wife does the same. What's your household income? Twenty four thousand dollars coming into the house. Okay. Right. You got a couple of lousy jobs. Don't you? Yes, we do. I'm trying to change that. I'm not picking on. You just going through. I think you can make more money. You make more money delivering pizzas and you're making right now. You're working forty hours at retail. Yes, sir. How old are you? Thirty eight years old. Okay. All right. I did ten years in the army, I got out of the two years ago. And unfortunately, this is the only thing that's happened so far my life. Gotcha. Okay. Well, I think more than a credit card crisis. You have an income crisis. And I think you would agree with me 'cause you already looking to do better. And I mean I truthfully you can deliver pizzas and make more money than you're making now you make fifteen hundred bucks a month. Delivering pizza at night that's eighteen thousand dollars a year. And that's just doing it at night. Now you'd have to take your retail. If you've gotta evening shifts, you'd have to take those off, but you'd make more. But that's all temporary. Stopgap. What I want you do say, what am I going to be doing when I'm forty eight that makes me not twelve thousand dollars a year, but makes me sixty five thousand dollars a year. Whatever number, you pick up a number. That's a lot more. And what are the steps? I've gotta do to get to my get myself into that career. One of I gotta learn that I don't know what skills if I gotta develop that. Don't know do I need to take a class a certification. I don't care. What do you wanna be in the next phase of your life? And one of the steps to get there that makes you more money. That's the big deal. Now here's the thing you cannot borrow your way outta debt. I would not take out a credit card consolidation loan on your home. You're taking an unsecured debt. That's very small and turning it into a secured debt against your home. I don't want this lean against your home, especially with your income as low as it is right now, I'm gonna leave it alone. Here's the, let's say that you guys could do something to increase your income pretty dramatically. And you cleared this debt or a lot of it within a couple of years, the amount of money you save on interest on half of your loan because really only half of it savings half of eight thousand dollars of the seventeen is at four percent. So the other half is really what expensive and so really? You got eight thousand bucks that you're saving about a thousand dollars a year in interest on a thousand dollars a year is not your problem on seventeen thousand dollars worth of debt, what you need is seventeen thousand dollars more. And that's where we go back to the income side of the equation. The working part time jobs, six of them selling everything in sight, and working your long term career choices and decisions. But, you know, we tell you to list your debts smallest largest and attack them in that order, so oddly enough. Your smallest debts are your highest interest rate debts in your case. And so that first nine thousand dollars worth of debt that you pay off will be the twenty percent interest stuff because it's the smaller debts than the eight thousand at four percent. And so we start at smallest to largest regardless of interest rate in your case. It happens to be also correlating properly with the interest rate and you just attack and go in that order from this point forward, go right on. Down the list and make sure you know what's going on. So that's what I would do. I would spend ninety percent of my efforts right now on developing income for the short term with extra part-time jobs, six of them. Whether it's dog-walking cutting grass delivering pizzas. I don't care. Maybe you're an internet expert you start building websites for people. I don't care about we're gonna do side hustle. Some kind grind hustle ground. We're gonna sell stuff and then long term or, and get your incomes way up because we're going to really really, really focus on, what that long-term careers of what are the steps to move into it that makes you four or five times what you make now because you're, you know, the biggest thing you're facing here is not a big Papa debt. It's a lack of income in your situation, and again, please hear me that's not to shame, you appreciate your service to the country. I want you to go win. Hold on. I'm gonna send you a copy of the book the total money makeover, which will walk you through exactly what to do how to do it. Where we go from here. Thanks for the call. Open phones at triple eight eight to five five two two five. You jump in Gerri is on Twitter, says day, what's the difference between an e L P and a Smartvestor pro. Well, I'll go beyond that I have three kinds of things that I do endorsements for that. Don't work for me. And I don't own any part of their companies I simply found them. They do what I teach and our listeners needed them. And they pay me for their endorsements endorsement. Number one is a simple radio. Endorsement in some of your cities, you might hear heating and air company and I endorse that heating air company. I don't own anything there, they paid me an endorsement fee or very careful not to endorse companies. We haven't checked out, and that we wouldn't send my sister to, you know, if you send your relative there, we don't endorse them, and we don't send our listeners there that includes national advertisers. Churchill mortgage has been with me for twenty five years. Zanderinsurance has been with me for over twenty years. I don't own anything any part of those companies I'd not in those businesses. I'm not an insurance business. I'm not in the mortgage business, and we have sent millions and millions of millions of customers their way over several decades and they pay us for the radio ads which include my -dorsements the second thing, the second kind of endorsement is the LP's the endorsed local providers. There are several types of those real estate agents their local in your area. I endorse them. They pay us a fee for the endorsement, we've checked them out in great detail. It's a different department in our company than advertisers, advertisers, are handled in the broadcast department, E, L P in strategic alliances are its own separate department, that is heavily staffed because we check every single lead. If you wanna get your taxes. Done. If you wanna check your car and homeowner's insurance, you want long term care insurance, you won't help in any of these different areas. We have endorsed local providers that help you do that in all of those areas, and then the third category are people only in the investing world, and it's a type of an endorsement as well. I don't own any of those companies. I'm not licensed in that world haven't been in thirty years, don't wanna be and so I give investment advice all the time, but I've had all the licenses of had all the background of all the stuff. I just not in those businesses. I don't sell investments. I don't sell insurance. I don't sell tax services. We endorse companies that do that we trust that we have checked out, and that have the heart of a teacher, and they give advice consistent with what you hear here. So for investments, only, it's another type of investment, click Smartvestor at daveramsey dot com. It'll drop down a list of the Smartvestor pros in your area when you enter your formation and you select from among the ones that we recommend in your area. And again, they pay us and endorsements fee for that. But we spent a lot of time and money and effort and sweat on due-diligence on the Ps and on the Smartvestor pros to make sure that they're on the up and up, we do on the advertisers as well, but much more. So on the others. In the lobby of Ramsey solutions. Ron and Nancy are with us. Hey guys. How are you? How are you, Dave better than I deserve? Where are you guys from Ailey Colorado, which is about an hour out of Denver in the foothills? Very nice good. Well, welcome. Good to have you guys all the way over here to Tennessee to do a debt free scream. Have you paid off? We have paid off one hundred sixty one thousand two hundred and forty two dollars. Love it. How long did this take twenty three months? Good for you and your range of income during that time one hundred twenty to about one hundred and fifty good. What are you guys do for a living? We are self employed independent distributors for pepperidge farm. Oh, we have to outs and I also have a fun job. I'm part time bridal consultant. Oh, cool. Good for you guys fun. So what kind of debt was this one hundred sixty one thousand well, we had a car loan, we had a business loan and we paid off our house. Our mortgage. Hundred percent. Dad free. I love it. Well done very cool. Now, did you sell some stuff or did you have some money on the side? I mean, you've been living on beans and rice and pepperidge farms, or something. I don't just eat the stale the sale product. No, we didn't sell thing and just making one hundred fifty pay off eighty grand a year that crunch. We live in a teepee. So what's the house worth? I would say, well, the house prices in Colorado crazy. So probably between three hundred three fifty love it. Why did you guys very cool? So tell me the story, what happened that lit you on fire twenty three months ago. Well, it actually was three years ago. I'm an avid sports fan. I love the Denver Broncos. Love the Colorado Rockies. And one day I'm trying to find the Rockies game on the radio. And there's this guy on the radio mess up the game the game. And I don't know where I like what where's the Rockies? But then I started listening to you never heard of you for three years ago until then, and I sat in my car for three hours, listening to your entire show Nicolaj in the garage, because I didn't want to miss anything even the commercial breaks, if I run in the house, I'm not going to. I'm going to miss part of the show so wrong. That's weird. It's weird. Yeah. So then I became addicted today Ramsey. I listen to you every day and we wanted to attend a financial peace university class but all the classes were an hour away. Not good. Good. So I heard you say one day on the radio show that you don't need to have graduated from few to lead a class, you just need to be able to stick, a DVD play DVD player and put chairs circle I can do that. So we started a nephew class at our, our church up there in Bailey, and we've led four classes now. So what was the difference between three years ago when I started listening, what kicked it into gear twenty three and we started that I f p claw this game on then game on Nancy. He goes into the garage and joins a Colt. And what did you say all of this? I thought it was crazy. Yeah. Yes. So how did he get you on board? Well, any finally start? Give me cash. Thank you. That's good. Seriously? I mean you guys are teaching the class together. Right. And at some point along the way you had to go, okay. Yeah, this guy's he's kinda that all he's kind of going crazy on daveramsey stuff. But this looks to make sense when did that happen. I think two years ago. Okay. Yeah. About the time you start teaching teaching the class, in fact, three days before I started the first class, I bought a car brand new. And what do you like eating chocolate for your diet? Exactly, exactly. And I was so convicted I didn't drive that car to teach the class good. And there was one first thing I paid off because of things just stared at me every day, and you're a hypocrite. I paid paid that car off I had a five year loan. I paid it off in seven months, while I just threw every extra penny that night car. So what do you tell people now you paid off one hundred sixty one thousand and twenty three months. What are you tell people that keep getting out of debt is I my pain cash for items? And then doing budget, we did a but we've been married, thirty four years we ever been free before. No, no. We are the experts, borrowing money. We were the experts at borrowing money. It's we in thirty two years of marriage. We never did a budget. I did a budget. It was all up here. She just wouldn't follow it, if she couldn't see it. And I would say absolutely doing the budget. We're both together. We do the every dollar. I can see what she's spending. She sees what? And it's it just made sense, put everything in order cool. I'm proud of you guys. Well, done very, very well done. How's it feel you don't even have a house payment? Very brain now. We're more prepared for retirement, we're taking some great trips and now contributing to our grandchildren and our children. I would say one of our biggest regrets in our life is at our own kids. We have four kids had to take out student loans, and it's our whole by contributory grad, Vanson grandchildren's, five twenty nine that they will hopefully not have to have any student debt when they grow up and go to college. So that thanks to your smart. What did they all your Smartvestor? Yeah. We met with him because I mean, you know, six months after teaching the class, I'm on fire. I'm like, I'm fifty four years old. I gotta get going on this retirement thing, I'm gonna work till I'm eighty so we met with him. I had an old 4._0._1._K. I had to roll into something. And I told him I said, I really want to get started on this retirement and your Smartvestor says, well, we, we don't recommend that because you're in babysat number to get those, those debts paid off. Then come talk to us. So this March, when we paid off that last thing I called him up. So we're ready. It's a good people that not by their product. Yeah. And he gave me great advice. I had a medical procedure coming up, and he says, do you have an HSA account? And I'm like, no, what's that explained the whole HSA thing he said, it'll save you fifteen hundred dollars on your taxes. Like also just little stuff that I learned from them. It was it was amazing. That's great. Well, white ago you guys very well done people chair in your own while you're doing all this. You know, I, I would think some some probably are FPU classes, turn this on eight motivation is you. Yeah. The motivation was your podcasts. It comes on and a weird. Our in Denver. We're sleep when you come on, and never, so the podcasts were great help, because I can listen to him on working today, and that was my motivation every day, and I will come home and say, danso you gotta hit here. What Dave said the day they're going to hear this one, so you motivated me so. Well we're proud of you well done. You guys are heroes fifty in your mid fifties. Everything's paid for house, and everything man, got a copy of Chris Hogan's retire inspired book, because you're right. You're on to that next step to become a millionaire and you're pretty close, and you'll be tuned, and then be outrageously generous, as you go along. And I love the idea of changing the grandkids generation with funding. Those five twenty nine and very, very cool stuff, well done. You guys you're great, you're impressive Rana Nazi from Colorado, one hundred sixty one thousand two hundred and forty dollars made up and twenty three months house and everything. If you're watching on YouTube you're looking at weird people count it down. Let's hear a debt free scream. Hm three two would. Gets that while man. Oh man. Oh man. One is that so you can do this. Okay. If you're fifty or twenty five sixty five forty five I don't care, you think you're different math is just math, baby doll. I'm to get after it. This is a system that works when you're going to do it, and it's only questions the question only you can answer. This is the Dave Ramsey show. Joining us everyone. We're glad you're here. This is the Dave Ramsey show. A show about you. Adagio is with us in Las Vegas had show. How are you? Hi, dave. How are you? Deserve. What's up? Well, they listening to you for very long time, like almost every day this to you, you to work with my headset. So so, you know, I'm daily listen to you and I pretty much have lots of questions. But this is the main question that I probably help. One is kind of like a dispute between me and my husband, I basically want a second job. My first job housekeeping, and it's very strenuous work. So my second job will have to be like, little to no work. So I was thinking about, like maybe there's something small gas station job. My husband doesn't want me to do that type of job because we live in a bad neighborhood, and he doesn't want to lose his life. Basically we're only making right now forty two thousand dollars a year. I'm I'm bringing thirty four. He's bringing in roughly around six to eight thousand and he just started a new job. So like this, this is his second week training on his new job. He's Bill be working with the school district like making like twenty two thousand so within the next year, we'll be up to fifty fifty six thousand but I just feel like I need to put more into the pot, because we're fifty thousand dollars in debt, and I feel like it needs to go away, as soon as possible. So I need help. Dave, I would do. Who's he's right? I wouldn't put myself in jeopardy for the few dollars that you would make you know sitting in a market. But working extra jobs, not a bad idea. I just think we need a different one. If there and I, I think you're, you know, you've narrowed it down to one possible choice, and that's bad choice. So if it's that or nothing do nothing. But I, I don't think that's the actually cohesion. There's some other things you can do. Now, you know, yet, cleaning houses, hard work, but, you know, getting out of debts hard work, works, called hard work. So, you know it is strenuous. Yes. But you're young both of your young and you can do all kinds of different things to create income. It doesn't have to be that you put yourself in a situation where your safety is in question, but I wouldn't put my safety in question for minimum wage. No. Thank you. And I wouldn't agree with him on that. But is there something else you can do? Yes. I just don't know what it is today. But. Thank you guys together need to have a goal together of using your his new income. You're all new good household, income, plus, any extra job money that the two of you can generate to get out of debt, and yeah, yeah, I would create some extra income, but I wouldn't just just wouldn't do it there. Charles is with us in Portland, Oregon. Hey, charles. How are you Dave wonderful talking with you? You too. I just graduated seminary my wife and I have been added since well, we've been on the Dave Ramsey playing since August and praise. God, we've been elva kill seventeen thousand debt worth of credit card and personal loan. Good for you. And we actually catch flow the last semester. So you'll be happy to hear that. That's awesome. Well done. Yeah. The problem is now I have a hundred seventy eight thousand in debt, and I'm not a doctor or lawyer. Neither is my wife. Hundred and seventy eight thousand for seminary. Airy flight school my undergrad and her undergrad flight school. And a lot of bad decisions along the way. Okay. So what is your career path and what is her career path? What are you going to be making right now? My wife is social workers. That's what she went to school for she's making forty two. And having graduated in April I was doing construction and side jobs. That's kinda got us out of that seventeen thousand fish. She was making ends meet, and my, my money was going towards debt. So I wanna I'm called the pastor. We're hoping in two years to be out of debt. I know it sounds crazy, but we believe it possible to your plan, and you got, so we wanna plant churches internationally and every everything we wanna do that standing in our way. So we're sick of it. We, we have such a big calling on our life, that, that we know God wants to take us there. But I'm wondering do I take a pastor gig for the next couple of? Years, thirty K and do a time aside jobs or do I do ministry for the next couple of years assigned game? Whichever one makes the most money. Because at this stage of the game what you've discovered is the very real truth that the borrowers slave to the lender. You don't have choices. Your choices were given up when you sign the papers for Sandra and seventy eight thousand dollars in student loan debt. So what you guys have got to do in order to be able to do. You're calling at some point into the future, you guys have got to create as much possible income as you can both of you. So you're callings are, are held back by this. So let's do anything to be able to get towards the calling, and that is even if you do nothing in the calling right now either one of you and you could make three times more money than go do that for a short period of time. Okay. You know, three or four years to clean up this mess. You just got to have a good sized shovel. Because you've got a big hole. Right. We feel responsible hundred percent. Jobs, we've been we've been killing working hard by my wife's fully on board. I read three of your books, so we're, we're pumped up man. We're just sicker than debt. I'm proud of you. I think you've got the bull by the horns, it's just a big old bull. Right. Yeah. You know, you're you're getting after it. You got the right attitude. And so, you know, if you can work construction and make twice as much and you know, just your, your ministry stuff is side job, or volunteer or whatever. And that keeps that portion of your calling tickled while you knock this out. Then go go do that. That's okay in. That's just the price you're paying for the decisions in the past. It's reaping. What you've sown. And, and so, but the good news is not a ten year problem. It's three four five year problem, depending on how much you guys can make so anywhere from three to five years from now you're debt, free, depending on how much income, you can generate between the two of you doing anything and everything this legal and moral. And, you know, the faster you get this thing out of your life, the faster, you can lean back and go, okay God, what do you wanna do now? Let's play and all the okay to ask him for help, by the way, because you're driving a car. You're driving your life, right? Straight into his calling of your. Calling on you so God help me do this show, me how to show me how to make money show me where I can make some money show. Help me, God lead me into good jobs that pay very, very well to clean up this mess and, you know, it's interesting when you repent turn away from bad decisions. That's what repent means you know, that it, it's interesting, God blesses the new direction, I and, you know, sometimes you get out, you know twice as fast as you got in. But it still took you, you know, five six years to make them as so it may take three or four years to get out that kind of thing Hannah's with us in Los Angeles Hannah. How can I help? Right. Quick for a run out of time. Hit Brian instead of hand. I've missed up everything. Now, I'm just going to go to this Email Kaley is on Twitter and says, Dave, do you need umbrella insurance? If you don't have any assets, yet, no umbrella insurance is once you start to build some wealth. If you've got a half million dollars, you've got a million dollars and assets, something like that you start to be a target, and you pick up an umbrella policy, which is an inexpensive additional liability policy that sits on top of your. Your homeowner's car insurance and takes you where you wanna go and you know that's the direction ago. But no, you do not need an umbrella policy. But a million dollar umbrella policy for those of you that are starting to build some assets, only to three hundred dollars, depending on where you live something like that. It's very inexpensive. It's one of the better buys all of the insurance world, for that matter, the extra million dollars, liability coverage. If you starting to have some assets that somebody could sue you and take away, for instance, if you're in a bad car, wreck of someone got hurt on your property, or something like that, where you could end up having a real problem financially. And that, that liability umbrella, his an easy thing to get an ad on when you do that. But you don't need to do that, to assets wouldn't spend the money to have extra liability insurance when there's nothing for those to get in on exactly at target at that point, you want to learn more about that or just getting a better deal on your car, and homeowner's insurance, just click E L P for insurance at daveramsey dot com and help you out those great brokers. Shop around and get you the best possible deal out there and causing to work for you. This is the Dave Ramsey show. Hey, it's Blake Thompson, senior executive producer for the show. You can listen or watch anywhere. The Dave Ramsey show app on your smartphone. Catch the full show or watch the highlights and checkout Dave's upcoming guests at the app store and download it today. Make more money doing what you love checkout. Christie rights business boutique podcast, Christie's inspiring, and in quipping women to become successful running their own business hand, Christy Wright, and I help women all over the country, take their ideas and passions and hobbies and turn them into profitable businesses. You have an idea in your head or dreaming, your heart, and you've ever wondered if you could make money doing it. I'm here to help. Join us on the business booty podcast where we are quipping women to make money doing what they love subscribed to Christie rights business boutique podcast, wherever you listen to podcasts. Hey, it's James producer of the Dave Ramsey show. This episode is over. But check the episode notes for links to products and services. You've heard about during this episode. Thanks for listening.

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Without a Profit, Your Side Hustle Is Just a Hobby (Hour 3)

The Dave Ramsey Show

39:53 min | 2 years ago

Without a Profit, Your Side Hustle Is Just a Hobby (Hour 3)

"Live from the headquarters of Ramsey solutions broadcasting from the dollar car rentals studios. It's the Dave Ramsey show. Would net is dumb cash is king and the paid off home mortgage has taken the place of the w as the status symbol of choice. I am Dave Ramsey your host. Thank you for joining us. Open phones at triple eight eight to five five two two five Paul is with us in Indianapolis. Hey, Paul, welcome to the Dave Ramsey show. Hey, Dave doing better than I deserve. What's up? Well, I am a federal employee. I work at the department of theirs and the retirement options that they give us are either traditional P or Roth TSP and they offer a five percent match. So I'm on baby step four and I have five percent matched up to my rough DSP. But I'm looking to now get my income up to fifteen percent, right. I was looking to start a Roth IRA, and I talked to a couple of different investor pros mart, Mr. pros. And a few of them told me that it might be beneficial for me to just invest the rest of the my Roth TSP up to fifty percent until my retirement savings reaches fifty fifty thousand that weight the commission that they would get would be worth my while. And I'm just kinda wondering what to do with my funds to get up to fifteen percent vesting right now. Until the commission that they would get. That's that's what a few have have told me that that it may not about your break point. You've got break points when you have fifty thousand dollars invested with a mutual fund, but not the T S P won't affect that. That's when you have like if you have a certain brand of funds say American funds, and you've got fifty thousand dollars invested with that brand or fidelity or whoever you'll usually hit a break point and have less commissions that you are paying when you get to fifty thousand. But when you've got fifty thousand in your ESPN doesn't affect that. Well, I think that's where I got confused because I'm still confused at the investing. And I listen near podcast, and I'm learning I go, but right now, I if I knew that my employer's contributions weren't going to have to have taxes paid once. I take it out. I would say, okay. Well, that's kind of a win win for me. But I really like to to get a. As much bang for my buck as as I can or the order is that you do match. I Roth second and non Roth third. Okay. So the the matching portion is free money, even though you have to pay taxes on the matching portion when you take it out, but it's free money. And so that five percent match. That's a no brainer being in Roth DSP is a no brainer. So let's put five percent of your income. Are you single? No, I'm married. Okay. And does your wife work outside the home? She's in between she's a teacher. And we we have a nine month old at home. So run the calculation that on your income. So what do you make? I make fifty two you make fifty two thousand okay. All right and. So. Fifteen percent, then is going to be seventy eight hundred dollars. Right. Right. Okay. And how old are you thirty two. Okay. So if you put five percent and then ten percent of fifty to five thousand two hundred dollars. Right. That's what you have left. And they question is where do we put the five thousand two hundred two we put it in a Roth for you? Roth IRA for you. Or do we put that much more in the TSP, those are two possible options, raw three SP or Roth IRA in mutual funds? So then the only question between those two things is which can you get the best mutual funds with now you TSP as the C plan the plan the I plan and we recommend eighty percent in the see ten percent. The I ten percent the S you've heard me say that right? Right. And that's I actually have those same numbers in and right now with those perfect. So the question. Is if you put five thousand two hundred dollars more in there in those three plans, could you have found some mutual funds that beat those three plans as a mix like we had and the answer is. Yes. So go back to a Smartvestor pro and him. You wanna put five thousand two hundred dollars into a Roth IRA in mutual funds that are going out that have a track record of outperforming your c s and I plans makes eighty ten ten and you can you can pull up the projections on on the history of the CVS, and the I and mix it in at eight ten ten and compare it to because basically you're going to be having to beat the S and P five hundred is what you've gotta do because that's five hundred is the plan, and that's about how it performs and you've just gotta find a series of growth stock mutual funds that outperform the SNP. Okay. And you can do that. Now, the here's the here's the thing more. It's not going to be a lot different. That group of funds in the TSP. Let's say one year they did eleven percent. The funds. I'm talking about my do thirteen one year your funds in the TSP. Do nine percent. The ones I'm talking about my ten. Okay. So it's not gonna be this. This discussion is not life changing. But it's all about teaching you how to look at this. And how to think about it? So that because that's what you're looking for is the knowledge so you can make the critical thinking skills decision on your own. And that that's what you're reaching for. Now. What happens is your five thousand two hundred is going to get a commission paid on it. It doesn't get a commission paid on it in the TSP. And so you're not gonna get quite as much in there. So that's what they're talking about that until that gets up to until your IRA that we're talking about gets up to fifty thousand. It's not it's probably going about break, even with TSP. So that's why it's kind of a wash between now and fifty thousand. Say, but it's not that when you get fifty thousand in your TSP, you're gonna save commissions over here on the other side does that make sense? But you're not you don't have enough going in quick enough at this stage of the game to get to that fifty thousand break point very quickly. It's probably going to be six seven years for you get there if things stay exactly like they are now. Now, if your wife's working in your income goes way up then then you might get there and four years, you know, that could happen because you're be putting more in. So the point of all this discussion is that's the knowledge and after all that gobbly Gook. The math is I kind of agree. It's not gonna be much different for the next for the next five years. So you can do either one. But. And you know, I think the I think the big issue is that you're smart enough to have gotten out of debt you built your -mergency fund. And now, you're putting seventy eight hundred dollars away. If you don't do anything, but take that match and put seventy eight hundred dollars away for the rest of your working life. You're gonna retire multi-millionaire in the TSP alone. Okay. Great never do anything else. So you're gonna be fine because you're smart, and you've been doing this, and you're saving your investing a substantial portion of your income. I mean, it's radical how much money you're gonna happen. Thirty to sixty to thirty years in there at those rates of return that that those three areas have had a history of bringing the baby it's going to be so. Love it. Well, done sir, everyday millionaire on the way to matter of time get off baby. This is the Dave Ramsey show. If you own a business, you have to get it on in order to survive in today's marketplace, no exceptions. Now, there's a lot of ways to do that. But the Smart Choice is host gator hostgator web hosting is reliable, and they have twenty four seven live support and host gator has an easy to use drag and drop builder that comes free with your hosting plan. Plus Dave Ramsey listeners. Get up to sixty percent off their hosting packages. Now, that's a deal. Go to hostgator dot com and make sure to use the code, Dave and get this. Great offer host gator dot com, code Dave. Derek is in Detroit. Welcome to the Dave Ramsey show. There. Are you serve better than I deserve. What's up? So my fiance, and I always started financial peace chamber fifteenth were just finishing a baby step one. And we're selling everything we don't need. So on the side I made would pipes. And my question is is would that be considered a good side hustle? And if so how would you recommend as far as? Getting things sold the hell bring intimate. So we can start working on our debt. The only way it's a good side hustles to the extend it makes you money. Correct. So you making money. Not much. It's a little here and there, but something is better than not nothing. Not really not doing it. And doing something that makes you more money might be better. So you either need to get the your side-hustle into gear and get it to making money or otherwise, it's a it's a quasi a hobby. When when you run around doing stuff, you know, making money that's called a hobby. So if you wanna gear this up and really get selling and build you a website get things moving get your production up on your side hustle. And let's start making some serious Bank with it to where you get the idea that maybe even at your fulltime career someday. I mean, let's get to going and if you can get that going. I mean, you didn't make fifteen twenty thousand dollars a year on your side hustle. When you get that going, then you then, you know, you gotta side hustle. But when you're making five hundred dollars every six months, that's not a Sada's. So that's a hobby. Kathleen is whether it's in Norfolk Virginia. Hi, Kathleen, how are you? I'm doing well. Thank you for taking my call. How are you? Deserve. What's up? So the good news is my husband has recently taken a job that he's making quite a bit of money. And and whatever we're at odds as to how to treat the two deaths that we have one is our mortgage and the other is another mortgage. And that's the reason I'm calling the mortgage is on a small apartment building. And I've been treating that baby step three. But wondering if we should actually be moving into baby step spores? So I don't know what to do to. I'm sorry, baby. Step paying off to getting out of debt threes, your emergency fund. Right. Four is fifteen percent of your income going into retirement five more is it's collagen sixes pay off your mortgage. I put rental property in six it's a tiny tiny mortgage. What is the balance on the mortgage balance on it is eighty four thousand we have been impressively paying? This off on. What is your? What is your household income? Well. We have a combined navy retirement of over one hundred thousand plus the new jobs that he just took is an additional hundred fifty that said, we still have we have four kids that we had later in our careers were cash flowing through college at twenty four K a year and the other two horse to let home or private schools at twenty cater emergency fund built already of three to six months. We have about twenty. Well, we have twenty three thousand in right now you put it on. But we don't have raise. And that's what really worries me on your second. Here's the thing. Okay. First thing you need to do before. You do anything else you need to get the emergency fund up. It's not at three to six months of expenses. Okay. And I would treat this apartment as a baby step six thing. What's the balance on your home mortgage? Two thirteen. Yeah. I'd go to knock out the apartment as baby step six first. And then mock out your home mortgage is baby step six what that means. Is you have your -mergency fund fully funded and you're putting fifteen percent of your household income into retirement, which scratches the itch of your wanting to putting money into IRAs and so forth. Okay. So he'll do that with his 4._0._1._K. It is new place and you'll put fifteen you'll load up a couple of Roth IRA seven thousand each if you're over fifty thousand and. It's not a fourteen thousand and that you get up to fifteen percent of your household income at baby step four everything you can find above that. And above these tuitions, you're paying left and right. We start throwing it that a little apartment when that little apartments gone. Then we start throwing everything which would on that mortgage is going to increase your income yet again, everything at your home mortgage, and you're gonna knock it out. So really what we're saying is while you're saving fifteen percent. And while you're making several hundred thousand dollars a year, you got a knock out two hundred three hundred thousand dollars and mortgage debt, and you're gonna probably do that about four years. Maybe five years, you'll be deaf re-housing, everything, that's my guess. Because some of these tuitions are gonna start to fall away to even get a raise every time while he's kids graduate, and that's going to help you exonerate even more, and you hit the point that you're not in the tuition business anymore. And you've got all these mortgages paid off. And you've got this income. Oh, baby. It's going to go into high gear then on the savings and on the investing. You're going to be very very wealthy. John is with us in new London, Connecticut. Hi, john. How are you? Good day. Good. How can I help? I'm so I really graduated college you're ago, and I'm getting married in ten months. So the next thing I'm thinking about doing saving up where I sizable down payment for house and or paying cash for one. And my question is is my plan was just stash up a bunch of cash in any of the counter checking account for that. But I was wondering if that's too conservative. No, unless you're unless you've got five years or longer you gonna say for five years or more. Probably not right around four to five to six. Yeah. I mean, and how much are you talking about saving? I think trying to hit around eighty to one hundred generally what I tell folks is. It's not worth the risk of the market the stock market turning down on you. And right loose some of your money when you're trying to do something like this. And so you're not gonna make anything when you save money in a Bank, but you're not gonna lose anything. And so I mean, if you're if you had eight thousand dollars in the stock market went down ten percents, you lose eight thousand dollars right that that would feel out. And so yeah. So I don't use mutual funds for investing in situations. Like, you're in unless you're gonna leave the money alone at least five years because it would mean too much to you negatively, if something turned down on you there. And so it's not worth the upsides not worth the downside risk in your situation. That's what it comes down to. And so I hated that. You're not gonna make any money on your money. But I would hate it more. You lost some money. So if I woke up in your exact shoes, I would save just savings account which are making like one percent. Maybe something like that one one and a half poke around with your local Bank, your credit and try to get a good read a return, but you just not really gonna make any money on that. You just not gonna lose any money though. That's the good part. Folks, never too late to take control of your money, and one of the easiest places to start is by knowing where your money's going instead of wondering where it went. And right now is the time for you to make a change. The first thing you need to do is take control of your money by making a budget. We created the best budgeting app on the planet. It's elegant it's robust it kicks. But it's easy to set up a budget in about ten minutes. It's called everydollar almost six million people now are using every dollar as their budgeting tool. It is the most popular plan out there. It's working, and it's free yell baby. People choose every dollar because it's easy to set up your first budget work on it with your spouse man, don't wait anymore. This is the year twenty nineteen. This is your year take control of your money free. Budget at every dollar dot com. Everydollar dot com or find the app on Google play. This is the Dave Ramsey show. Thank you for joining us. America question today comes from blinds dot com. They have a one hundred percent satisfaction guarantee means even if you miss measure you pick the wrong color, you screw up. They will remake your window blinds for a fa- re you get free samples free shipping. And with the new promos every month, you'll save even more use the promo code Ramsey to get the best deal question. From Kaelin Kentucky. David told him a car last week. I ten thousand dollars zero percent interest on the vehicle until January twenty twenty. I'm receiving twelve thousand dollars from my loss. I have to buy vehicle to commute back and forth to work. I've six student loans with interest ranging from three thousand to twenty thousand how show us the twelve thousand dollars. Well, you don't have a choice. Ten thousand dollars. Is going to be used to pay off your vehicle, which leaves you two thousand dollars to buy a car, and I would just by the car. Unless I misunderstood you mean, you're actually getting twenty two thousand dollars, and you only ten if that's what you're saying. Then you have twelve thousand dollars in cash after your car is paid off then I would buy five or six thousand dollar car and then throw the rest of it at some of your debts. And but continue on down your that snowball. I think it's an opportunity to move you into a cheaper car in this case, maybe a much cheaper car, depending on where you are. But if we're talking about you have two thousand dollars cash in your hand after your car is paid off about two thousand car if we're talking about you have twelve thousand dollars cash in your hand, if your car is paid off about six thousand car, but the other six thousand hundred snowball, Alex is in Kalamazoo. I Alex welcome to the Dave Ramsey show. Hi, dave. Thanks for having me. Sure. What's up? So my wife, and I are currently on baby step number two. I've taken a new position that requires me to travel a lot throughout the area and my company offers vehicle reimbursement program to buy new vehicle. So I went out and bought a brand new vehicle and currently receiving a monthly stipend from the company to basically pay for the vehicle payments. So the notes in my name, the company pays me monthly. I'm wondering if I should just continue to take this payment monthly and put it towards the vehicle or if we should buckle down and pay this vehicle off this fast as possible and just have the company continued to pay me that stipend. Okay. How much do you owe on the vehicle? About thirty eight thousand two. And what's your household income? Ninety five thousand dollars. And how much are you said, you're married? Yep. And what is the value of your wife's vehicle? Hers is probably about fifteen thousand. Okay. All right. And and you have thirty eight thousand dollars in debt on this car, and what are the debts? Do you have not counting your home? Bless thousand credit card that we're just about to pay off her student loans, which are I think right around sixteen or seventeen thousand and that's a couple of things that that broke down here. One. Is you get a vehicle stipend whether you have a car payment or not? That's how I understood it. I go out and five. No. You misunderstand. You they are asking you to use your car for work. And so they are giving you a vehicle stipend. They did not I choir you to have a payment in order to get a vehicle Stipe. And so if the car were paid off in cash, you would still be getting the stipend. Okay. And so you connected. Those two things though and use that as an excuse to drew ridiculously over by on car. So are you are you are you driving a lot of miles. I am I am part of the the stipulation for the company to be eligible for the program is the car has to be within format will years of being new. Yeah. It'd be eligible for that. Yeah. Reimbursement. And you don't think you could do that shoeprint thirty eight thousand. Probably do that for about fifteen thousand. If I did that I'd be buying a new vehicle every year or two to stay within that reimbursement. True. Yeah. So here's the thing. You're about to turn thirty eight thousand eight thousand so fast. You're going to blink. With the mouser put on a car, you are destroying the value of the car, and you're not only destroying the value of a car, you're destroying and your case the value of an expensive car, whatever you drive year going to destroy its value because the miles you put on your road warrior, and so you're you know, this is a business transaction. This is not impressing girl to stop light. This is a business transaction. And so you want to lose as little money on vehicles that you are destroying their value as possible and still get the job done. Now. We've got three things that are required for you to get the job done. One is to be reliable to is you spend a lot of time in the car. It's got to be reasonably comfortable. We're not putting your butt in the smart car. That'd be dumb. Okay. You being the chiropractors office as much time as you spend in the car. So he's got to be reasonably comfortable. It's got to be reliable. And the company has said it has to be within. For model years. And so if I'm in your shoes, financially, I'm going to buy a nice little Ford. Taurus, Honda off. Our Honda Acura, something that gets good gas mileage that is three model years old, and I'm gonna roll that puppy once a year, and because you're destroying its value. And I'm gonna put all this company money in my pocket as I'm doing that. Because what if you buy a fifteen thousand dollar car a year later, it's worth ten if you buy forty thousand dollar car year later, it's gonna be worth twenty. Because the milder putting on it go do a little bit of research on your car three years from now with the miles. You're putting on it value pick up your car that you're driving today. What is it? What kind of car? Hello. Hello. Well, I guess that didn't work. Okay. Sometimes I'm just talking to myself open phones at triple eight eight to five five two two five so road boyer's. There's principal. Can't you are not required to go into debt to take your companies. Car stipend, and you don't wanna do that. That's not a plant. You wanna drive the least car possible? And that's you can't drive a hoop Dee in this situation. And and the goal is saving big cash for it. The other thing that Alex's violating is that he has more than half his annual income tied up in things with wheels. And motors. Things was wheels. And Motors are the most expensive things we buy as consumers that go down in value. And they all go down in value boats cars lawn tractors cedars. Four wheelers motorcycles trucks, all go down in value. You don't get rich tying up a large substantial amount of your money in things that are going the wrong way. So when you make ninety five thousand dollars a year, you don't need more than forty seven thousand dollars tied up in things that are going down in value, and he has ten thousand more than that fifteen on his wife's car thirty thirty eight on his car. And so he's eight thousand dollars over that which tells me so so basically what happened is is the he saw this extra income, by the way when your company fires you or you quit because they don't have integrity that car stipend. Ops and your car payment doesn't. So they are not paying for your car. They didn't sign the car note. You did you took all this risk. You're the one taken the butt kicking on this car going down in value while you do your job for them. And they're not giving you enough money to offset that. So that helps you stay away from card debt. They wait from cars things with Motors wheels that equal more than half your annual income company stipend by the league because you're a road warrior by the least possible car that would get the job done reliable reasonably comfortable and used. Hours today, Hebrews six ten God is not unjust. He will not forget, you work and the love you have shown them as you've helped his people and continue to help. In rewards such do more for the world than the world does for you. That is success. A man goodstuff ban is with us in Cincinnati. Hi, been welcome to the Dave Ramsey show. Try Dave how are you better than I deserve? What's up? So I am about to graduate pharmacy school here in a couple of months I'm in last year. But I have a question about let me start the baby steps like right after I started having lined up, but I have a couple of student loans that I have a cosigner on. And I was just wondering do I have an obligation to try to get those paid off? I they're actually a couple of my life higher up in the loan list. But I know that you about the cosigners I didn't know if I should try to tackle those first are they cost? For you. My grandma. Okay. Is she in is it bringing harm Trumper for those loans to be there. If I if only what happened to me didn't. Yes. Yeah. If something happened to you. Yes. But as as long as you are paying the monthly payment. It doesn't it doesn't cause her any hardship. Correct. Correct. Yeah. Okay. Good. And so how much student loan debt? Will you have been? It'll be about two hundred forty five thousand dollars. Goodness gracious. What are you? What are you gonna be making one ten it'd be like one Twenty-one fifty depending on how much overtime? I can get. Yeah. You're gonna get all you can get if not you're gonna run over to the yard and get some right, right? Right. Yeah. And then I had another question. Okay. Let's stop. Listen was land that Blaine. I all right. Yes. So here's the thing as long as you're paying the minimum payments, while you're doing the other stuff grandma is not being harmed than there is my reason. Now, I would. Pick up a life insurance policy immediately upon graduation that covers those loans. So that if my question are, they are they federally insured loans. Two three of them are through discover and then the rest of its Sallie Mae. Okay. But the ones that are co-signed or through the discover the ones that I'm worried of. Yeah. You need to get life insurance to cover those. If you die. So it's not left on her. Right. And that was my other question. I didn't do I need to get enough to just 'cause I don't I don't know. I'm just by myself. So that was my my name could get enough it won't cost anything because you're young. If you're reasonably healthy, I won't hardly anything to get you like a four hundred thousand dollars policy while you're at it. I wouldn't normally buy insurance. But because it's a single person. You don't have any thing any dependence that are dependent upon your income. But in this case you do grandma's dependent on your income. So just go ahead and get enough to clean up, you know, maybe three hundred thousand enough to clean up your student loan debt, and they have a little to do some other odds and ends with if something happened to you. It's not that expensive. So make sure you take care of that. And then make sure you work your debt snowball and making a hundred and fifty when you used to make ne. Nothing you should clear this up in between two and three years. That's seventy five to one hundred thousand dollars a year. And that clears you into two three years, and you should easily do that making one fifty 'cause used to live on nothing and just keep living on nothing and clean up this mess. And so it's a temporary thing when you start looking at it that way, it's not gonna it's not be a problem for you for very long, Diana is in Houston, Texas high. Diana, welcome to the Dave Ramsey show. Hi, dave. How are you? Better than I deserve. What's up? My husband, and I are currently in custody battle with his ex wife, and we're trying to save money for you know, to cash flow the war what we're trying to do is sell two vehicles. But what they're trying to give us for the vehicles is less than what we owe on them. And I'm not exactly sure what we need to do. Mainly. We're trying to sell vehicles one is twenty eight thousand dollars and they're giving us eighteen twenty eight. Yes. And they've quoted you eighteen as a trade in. Yes. Okay. Well, that's a wholesale price. If you were to retail, it private cell sale on Kelley blue book, it's probably going to be twenty three or twenty four probably still leaving you five thousand dollars or so in the whole, right? So obviously, you don't have any money. How is your credit? In the like, six seventies talk, your local credit union, your local Bank and see if you can borrow that extra five K, and then private sale, it the the car dealer by definition has to offer you less because they're gonna turn around salad at what you could sell it for on Craigslist, right retail. So I'd put the car on Craigslist at twenty two twenty three or whatever Kelley blue book says it's worth and then but have the other five thousand dollars a ranged. Now that doesn't give you money for the lawyer that just gets you out of the car payment, which helps you get money for the lawyer. Correct. And the same thing with the other car, what do you owe on the other car twenty four thousand goodness gracious. And what is it coming up? What are they offering you on that one? About the same eighteen to twenty. So by the time you sell that one private sale, you're probably not going to be in the hall much at all. What's your household income one forty? Oh, that's good news. Okay. Well, I think you can dump these two cars get into some hoop dis clean up this mess and save the money for your lawyer pretty quick, but you're going to have to have that you're gonna pull it together. And you guys need to get on a really tight written budget because I think he'd probably scrape together the five grand or whatever you need pretty quick making one forty, but this is not going out to eat. This is not going on vacation. This is not doing anything and everything in sight can be sold. I mean, this is about babies or there's a custody battle here. And so this is about you know, being serious with this. And so. I'm selling everything in sight. And I'm going to be on a tight scorched earth. Budget beans, and rice rice and beans written on every dollar? So you know, where every dollars going? Jessica's weather's in Grand Forks, North Dakota. I Jessica welcome to the Dave Ramsey show. How are you better than I deserve? What's up? We are just now starting to pay back my husband's student loans. He has forty eight thousand dollars in his England, and they Ridgely quoted us a payment amount of about six seventy five which is insane out of our budget because we don't make a whole lot of money we call then I haven't called them and kind of discussing other options, and they gave us a income-based six ten year loan option that drastically lower payback amount to about twenty thousand dollars. But it would be fixed amount every month for ten years. And I I know that kind of goes against your paid off as quick as possible lines that so I'm just kind of curious as to what you would do. Ever said of a plan that I'm going to spend the next ten years of my life paying minimum payments, having a horrible income. So that I can avoid paying twenty thousand dollars the student loan debt. So you forty to forty two thousand dollars worth of student loan debt. Right. Forty eight. Yeah. I'm sorry. And so what is your household income approximately forty eight right now? But we do expect it to go up to just get a job last week. I've been home this whole time with our daughter. So your husband makes forty eight and what will you be making annually? Probably about after day could cost about. Annual your gross. About fifteen to twenty thousand I'm expecting fifteen to twenty thousand. Yeah, you're not working fulltime aria REM, but with Carlton. I just ask you what your gross was before child care. Right. What is your income going to be about fifteen twenty thousand era? It's a very low paying job the time you pay childcare out of fifteen or twenty. You've got nothing left. This. That's useless. No, okay. No. I'm gonna lay out a plan where I increase my. I excel in my careers and become debt free puts this hour that I've Ramsey show in the books. We'll be back with you before you know, it in the meantime, remember, there's ultimately only one way to financial peace, and that's to walk daily with the prince of peace Christ Jesus on Pandora and Spotify for all the ways to watch. And listen, check out our show kidding. Dave Ramsey dot com slash show. Hey, guys, if you're looking for real world, leadership and business advice from the top minds in business. Check out our entreleadership podcast. Hey, folks, Ken Coleman. Here would love to have you. Join us weekly as we dive into conversations with the top minds in leadership and take your business questions to help you grow yourself your team and your profits. Don't miss an episode subscribe to entree leadership where you listen to podcasts. Hey, it's James producer of the Dave Ramsey show. This episode is over the check the episode notes for links to products and services you've heard about during this episode. Thanks for listening.

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The Two Things You Get Back In Retirement

Chris Hogan's Retire Inspired

48:38 min | 2 years ago

The Two Things You Get Back In Retirement

"Coming up on this episode of the Chris HOGAN show. Are you getting married? Okay. Very good. Get your three to six months of -mergency. Funds stocked up by want you to talk with her and get an idea of what she wants the wedding. The look like have you ever been to steakhouse? Danny, you know, how they you go in and you get a steak, but they give you a baked potato on the side when it comes to the wedding, Danny? You're the big potato. Welcome to the Chris HOGAN show home of everyday millionaires. I am your host Chris HOGAN. And this is your show. This is where your life and your money take center stage. It's your life VIP's take charge. I'm so excited to be back with you all I have missed you. It's time to be back. But I wanted to do something before I take my first call I got an Email in from even an Eva says, I was watching the Chris HOGAN show YouTube channel and clicked on don't let your job dictate your net worth. She said, Mr. HOGAN mentioned a mother who has a child do part of the household budget. Well, she says I stand up and salute that mother because when my youngest was ten years old, I told him, do you think I made of money, and she said he looked at me and said, isn't that what mom stands for made of money this little boys? Funny. She said. I laugh so hard. I couldn't stand up. But I knew I had to get my children on board with knowing what it takes to make a dollar. So I stopped giving my children now, it's cash allowance my children have to earn their allowance if they've done what they've been asked I transfer it from my count to their high school accounts with my job if I don't do work. I don't get paid. So when my children come to me and say, hey, I don't see anything in my count. My question to them is what have you done to earn it? She said, that's usually when I hear crickets, she said it took him a minute to catch on. But they're doing better. Now when they wanna buy something they have to look at their account and ask is it, okay? To buy it and more importantly can they afford it? Thank you so much for what you do. I appreciate you and your wisdom with becoming financially wealthy. I'm not there yet. But I'm working on it. Sincerely, Eva, Eva. Thank you so much. I think that is classic. I love your approach. I love your education to help these young people start to understand where money comes from. And you're absolutely right money comes from a four letter word in it's called W O R K, and you have to and so one little addition either that I tell you is let's get rid of allowance, and let's start to call it commission. Right. Because when you do work, you can get paid. All right VIP's. I want to hear from you. If you've got a question or you wanna share success story? You can call and leave us voicemail. The number to call is eight four four two eight three nine three eight three again, the number to call eight four four two eight three nine three eight three or you can Email us just like Eva did and the Email addresses ask at Chris HOGAN, three sixty dot com. All right bomb excite look here. Let me let me double check. What we're doing? I'm going straight to the phone of genie on the line, Jeannie. How are you? I am great. And you oh, I'm focused not finishing lady. I appreciate you taking the time to call in. I understand that you have worked. It your way to a certain status these days where one of your everyday millionaires. That is fantastic. So tell me Jeanie what is your NetWorth million five? Okay. One million five and can you break that down? What's that comprise of about half cash and money in the 4._0._1._K half? It's real estate rental property, personal home and farm, very good and in yours process through this. What was your highest income in a given year highest ever probably about a little over hundred in our later years? Okay. Gotcha. And do you. Remember the lowest year you ever made. Both of us together probably around forty okay around forty. So you guys had a wide range you worked hard, but understand you've gone through some trials here recently. Well, yes, we did my husband fest way that two months ago. Which all that part is absolutely horrible. We had worked our way through all of the dumb stuff the tax. Steph new always talk about and we had everything paid off and paid for and plenty cash saved up and the 4._0._1._K. So it it's hard to. Okay. I'm have to worry about that. That is exactly right. You all definitely took care of business to put you in a position to where. Now, even though Lyft happened, and I'm so sorry to hear about the laws. If you don't have financial worry in your life true. And that that was the goal of why we did what we did. We didn't know you never know when it's going to happen. But you know, it will. That's right. We were fortunate we spent forty together, and I just wish it could be a few more this, ma'am. But but I'm I'm not what I'm going to eat or how I'm going to pay the bills. That left both of us feeling very comfortable. Yes. Absolutely. And I'm proud of you guys for working and staying focused and doing that. But you told me you said there was some resistance, right initially. What was the resistance to get started on a plan? Well, the resistance came from both of us initially. Okay. Because we knew what to do how to do it. And we didn't have to we didn't have to try to plan one step at a time. And at one point I I was over fifty and Mike was made his hi fees. Age group, man. And we realized you know, we make a lot of money, and we have nothing show for it. But. And I found Dave at that point and realize that this might work. We kinda started out with what you guys call the modified, Dave. And and we did that for a long time. And it just wasn't working in one day said, okay? You know, I'll just do it. You know, he says you gotta do it the right way. Or you're not really doing it. We started and it worked with me about two years to get Mike to get rid of the credit card. He's still thought that was a good thing. But when he started looking at and I made it down with me every month and look at the budget. Then he's kept saying, oh, well, this is good. When you finally realized. Yeah, you're doing good. I said, no where there you go. And he finally said, okay, I'll get rid of the credit cards, and we'll we'll just do with cash. I still use the on. Slopes. Sitting sitting in my wallet right now. I'm gonna tell you something the cash envelopes that was a game changing moment for me because it starts to give you control. So let me get this. Right. You all were in your fifties. When you got focused on doing this, correct? Okay. I just want the VIP's out there to listen because I got people of all age ranges right from the linear up to baby boomers and people will call me Jeanie. They'll say it's too late and see what you and your husband say at one more time for genie. It's never too late. You know, what ever do you believe it started? That's right. One of the things that really helped us. There was a lot of stuff that happened. It was just done luck. Nothing that we did my employer paid twelve percent of by income into before a one K, and we didn't even have I know, which is fabulous. And I really had no idea. What a good thing that until I got close to retirement and. So that was just kind of like I said dumb luck that didn't really have anything to do with us except for. That's where I went. And then we took care of the rest, you know, getting everything else all the stupid stuff paid off and got the house paid off. Don't we don't buy anything now unless we take cash for it. I like the genie while I'm very proud of you and thank you so much for taking the time to call in. And I'm very proud of what you all have accomplished. And you're right you and your husband worked hard, and you got focused and for those we I tease out there listening. You may be a little bit older. You may glance back and say I wish I would have started sooner guess what? It's never too late as genie just told you it is never ever she edited ever in there. It's never ever too late. It's what you have to do is to get started. You get focused. You get started. And you can start to attack some stuff and get it out of your life. Well, I'm gonna move into one of my favorite sections here. VIP? This is the section you caused you started sending emails, right? Ask it Chris HOGAN three sixty dot com and people were sending in stuff that they were either panicked about or they were pump. About and DWI said, you know, what we need to add this to the show. We wanna read these we want to talk about these things. And this is my opportunity to be able to coach individuals that have sent in the Email. That's why I'm going to start off with this. When this one is from Diane. Diane says I'm a single mom, and I've been saving to pay down ten thousand dollars in debt. She said I decided to start the divorce process, and that's added ten thousand more to my dead. I feel a little defeated because I feel that that process has put me behind. I have twenty seven hundred dollars to pay off my vehicle, and then I'll have possession of that. After the divorce. I do a budget every month and use envelope system to pay for everything I save money and pay all my bills on time. I've never owed this much money in my life, and I don't have student loans. How can I get my second win? Well, diane. I appreciate you sending in this Email. I feel for you where you are. You've. Got a lot of things going on first and foremost, you made a statement in here, I've never owed this much money in my life. And that in itself can almost feel like it's sucking the joy out of your life. And that's what debt does it takes from you. But I want you to hear me this debt can be fixed. And you will I hear it in your voice that you're focused. You're doing things, you know, the direction to go. And so I just want to encourage you. I think our second wind can come from heaven people around us where we understand a couple of things number one. You are not alone. You're absolutely not alone. But you're also not finished because you definitely sound focused. Now, you've had a life change go onto with the divorce, and that's tough in itself. And I'm sorry to hear that. But I know, and I've talked to many people that have walked to things like that that just doesn't define you. This doesn't break you this allows you to move forward and to be stronger, and you don't mention whether or not if their kids involved, but if they are they're watching you there watching how you. Mom handled a scenario, and it's so important for you to make sure that you stay connected to them. And that you get people around you. I don't know if you're plugged into a church or not if you're not I really want to encourage you to find one find a friend. That's going get plugged in. Because what you're gonna find out as we all got scrapes and bruises we all walk through something or have walked through something. But then I want you to hear me. See I firmly believe that when you walk through a mess. It can qualify you to become a messenger the way that you live, and what you do can actually be a testimony to other women that are walking through that scenario and even other husbands. And so here me you're not done yet. The focus you have and how you're attacking paying debts. I want you to stay very very focus this car that you're about to pay off. I want you to drive this bad boy till the bumpers fall off. And if they do which is slap some tape around it and keep on driving because we're not gonna go backwards forward is the direction you're going to go. And I believe when you catch our breath, and we get new perspective, you're going to have an opportunity to do some. Mazing things and this amount of debt is something you can control, and you can attack this and get it out of your life. But just hear me, let's not add to it. So don't go out and shop to try to medicate the frustration of irritation to walk in through. That's something. I want you to talk out so get plugged into church. Get some good friends around you and stay connected, Diana. I'd love to hear and I'd love for you to write in or call in once you attack this debt because I'd love for you to do a debt free scream with me. Thank you so much for your Email. I appreciate that. All right next up. We gotta pumped and this is from the Facebook group Hogan's everyday millionaires Facebook group, this one's from Janet's. She says, so I watched Chris HOGAN, smart money talk. I loved his generosity teaching moment with his son, and I became curious as an everyday millionaire. What's a fun generosity story that I could share? So she says here you go. My favorite Christmas edition is to pass out twenty to fifty dollar tips to those who serve the business. We frequent we start around thanksgiving time to help cover own Christmas giving and she goes many of those folks do not receive bonuses. So we enjoy handing them out the joy on their faces is thanks enough. We always giggle on our way home, Janet. You're absolutely right now VIP's you heard her allude to my giving story with my son. This is the waffle house story. And that's where I was with Brock. And if you've not heard it, I want you to plug into that. Maybe that's something I can share here on air. But it was an opportunity to teach my son about the importance of giving. And so that story it was one of those things where you understand that giving is a two way thing it blesses the person receiving it. But also the person doing the giving it can be a game changer and so- Janet I am pumped for you that you all do this that your budgeting and setting aside money to be able to be a blessing to others with an extra tip. I love that. And so continue to do that. Because you're right that tip. That action from you on that day can start to have a game changing moment for someone's day in their perspective. So be notice her my friends VIP's via notice notice people that are doing something. Well, and make sure your budgeting to be able to give some extra tips along the way. And so again, Janet, thank you so much for sharing that story and VIP's as we move into the holiday season. If you've got a giving story would love to hear from you just Email us you can Email us at ask at Chris HOGAN, three sixty dot com. We'd love to hear it. So again, Diane. Thank you so much for your Email, Janet, thank you for yours and VIP's if you have one if you're out there, and you're feeling panicked or you're feeling pumped. We'd love to hear from you. Because you're not the only one feeling that way. And guess what you're not alone. We're all here in this thing together. And that's important. All right. I'm gonna go to the phones next up got James on the line, James. How are you? Oh, buddy, I'm focused and not finished. What can I do for you today? My company that I worked for working for him, but not offer four one K or any retirement package five and trying to do that on my own maximum Ross. I raise the last four or five years, and I don't have any debt. I've got my residency fund by the end of this year. It'll be where I want to. Okay. But after this year, I kind of have some extra money. I don't really know. We're go go from here. Okay. Very good. And James, how old are you? I just turned twenty six twenty six years. I love this. So you tell me your maxed out the Roth IRA. So right now, you're doing up to fifty five hundred year. Yeah. I got that up to thirty five thousand okay. Fantastic at twenty six years old in here using an investment professional to help you with that. Yes. Actually, i'm. My best friend who was my college. And then my roommate graduated he is a stockbroker series seven moved in. I shot. I shot. He's like we gotta get serious about this now. Okay. Good twenty two. So he's been helping me along with. Okay, good. That's fantastic. And so being aware of this. What I would say is with your company, not offering a 4._0._1._K a couple of things there are things that you can do on your own just like you did with a Roth IRA you've got an opportunity you can invest in growth stock mutual funds on your own. This is all money that you're putting in and so obviously the gains when you get ready to pull it out you'll pay taxes on it. But I love your mindset at twenty six years old. So I want you to get connected, you've already got an investment professional, it never hurts to get a second opinion reach out to a Smartvestor pro as well by going to my website just have a conversation. Go to Chris HOGAN, three sixty dot com. Click on the dream team button. You can find one start to talk about that. Because I'm gonna tell you James with your age at twenty six this mindset that you have to have thirty five thousand already on a Roth. I mean, that's awesome. Now, we plug in this missing component of the 4._0._1._K. To really allow compound interest to start to work for you, brother. You're going to be on the path to become an everyday millionaire. But we gotta be careful, right. We got understand there's offense and defense to everything that we do investing offense. But guess what we have to do play defense and avoid the stupid said VIP's, we got ovoid it 'cause it's lurking everywhere. It's at the mall. Let's on the car shop, it's in the sporting goods store. Everybody's got something. They won't you to sign up for. Everybody's got something that's going to help make you feel better. And remember debt doesn't ever make you feel better? What it makes you feel as pain and regret? So stay focus. You know, why VIP's because you're not finished. So listen, we've got something special. This is hot off the press DWI is still smoking. I gotta tell you about something. I'm just talking about offense defense. Let me ask you something. Do you wanna get smarter with your money? Well, I'm gonna tell you something one of the best ways to do that this to come to one of our live events. Now, we travel all around the country. This is Dave Rachel myself. And the O'neil we're out. They're talking about money. So you've got an opportunity. I love it. Because I love to see what happens when people are all surrounded by other focused people. I'd love to see the energy. I love to see the fun when people are moving in the same direction. It's amazing. And so you've seen it in sporting events where everybody's cheering on the same team. Imagine being in an arena or being in an event where you got people that are starting to seriously get focused on their money. These are people that are working hard. And so we've got a great opportunity for you. You see tomorrow? That's November fifteenth. I'm going to be speaking at our smart many event and San Antonio now. I know you thinking HOGAN, I don't live in Texas. I can't come see us there. But listen to me. Yes. You can because we're going to be live streaming this event. That's right. Livestream. Okay. For you, non technical people. I'm not technically. But here's what we're going to. We're going to make available to you. So all you have to do. And I'm only do some special for you. Because your VIP's I'm going to give you a special rate. So you can be part of this event for just nine ninety nine that's nine dollars ninety nine cents. All you have to do is go to Chris HOGAN three sixty dot com slash avent's and use the promo code HOGAN show. That's all one word HOGAN show. So again, go to Kris. Okay. Three sixty dot com slash events and use the promo code HOGAN show. All right, great opportunity. And by the way, you heard me refer to that giving story with my son. I'll be doing that story at this event. So you'll have an opportunity to hear it firsthand live from stage. So that's awesome. I hope you all are able to plug in set aside time if you're married make it a date night. Sit there together get to some popcorn and watch. What happens it's going to be fantastic. Dave, and I both will be at this event. Now as always DWI have a link to this and the show notes, and if you're watching on the YouTube channel, click on the link below in it'll get you right there. Okay. Is. Time for my did. You know, now, you all know, I love to browse through things. I love to read articles and stay up to date on some stuff. I'm going to share with this did, you know, twenty four million homeowners would tap into home equity to keep up with their household bills. Excuse me. Yeah. Let me say it. One more time twenty four million homeowners tap into their home equity to keep up with a regular household bills. Now, I'm going to talk about this where I've been it. Because too many times we go the course of least resistance, the meaning we see this thing we've heard about it. And so we just think it's easy. But if we back up really unpack the American dream the goal is not to just buy a home, but to pay that bad boy off, right? I mean that's the goal if we're honest in were serious about it. Right. And so when you tap into equity. The problem is is you're stealing money from yourself. Right. You're taking away money because the goal is to pay off the home to have it free and clear, and if you want to stay in it, you stay in it, all you're paying his property taxes and insurance or you, sell it, you get a pile of money, and you move on with life, but home equities, I'm telling you. It's one of the the slickest marketing tools that the Bank. Industry has had and the last gosh, twenty years number one home equity lines of credit, the called he locks couple things you need to know about this. I'm former banker so I'm gonna shoot gel straight number one. It uses your home's equity. All right. So that means you're taking money from the house to pay off credit cards, Car Loans, all these other debts. But here's the thing. They never tell you. They never call it a mortgage, you'll never hear it referred to as a second mortgage because what it is a mortgage. So home equity line of credit is another mortgage on your home, which means the home is the collateral. You get the loan because of having the home, but if you don't pay for the loan, guess what you put your home at risk. So the deal is don't touch that let that equity sit there and grow year after year, I want you to use the debt snowball method VIP's, that's what we list that's out. Smallest biggest we attack the little one by paying minimums on the other. And once we pay that one off we moved down to the next one. The thought of consolidating is a myth. You know, why I'm gonna show you right now. Because the reality is is when you consolidate debts number one, you've taken everything you got one big one, right? You got one big thing that you're trying to to attack and it can coach to get frustrated. And when we get frustrated we end up stopping so I don't want you to consolidate. It's a con because what they do is they show you the math of how you're supposedly saving money. The problem is they never show you that you're staying in debt longer. Okay. The monthly payment might get reduced. But now you're in debt for another ten to twelve years longer because of the consolidation. Don't fall for that VIP's. We're going to see things for what they are. We attack. That's individually. Smallest the biggest wanna stay focus. So don't do home equities. If you've got one I'm not trying to make you feel bad. I just want you to get intentional. And let's tack that thing and pay it off and make sure your home's not tied up anymore because that's not the goal. The goal is to own a home, and you wanna be able to move freely with confidence. Okay. VIP's I won't to hear from you. If you've got a question a success store, you wanna share call us. Leave us a voicemail. The number to call is eight four four eight three nine three eight three again that's eight four four two eight three nine three three. Or if you prefer you can Email us the Email addresses ask at Chris HOGAN, three sixty dot com. We'd love to be able to hear from you. Okay. I've got Christina on the line out of Florida, Christina. How are you? Hi, I'm good. How are you? I'm focused and not finish. Hey, how is the weather in Florida right now? The weather's really nice right now. It's not too hot befall. Okay. So again right there. You're not gonna tell me number are you what was seventy eight. I'm not happy with you. Okay. That's warmer there. I'm coming down to hang out with you here in a little while Christina. How can I help today? I call them because my husband, and I ever attorneys, we have a very significant amount of debt. And so we're kind of just wondering like we want to begin investing. But we know what type bag, you know. We're kind of wondering what to do. Okay. So both of you are attorneys that means both of you did undergrad as well as law school correct yet. Okay. Have you added up the student loan debt over five hundred thousand dollars actually over home out over five hundred thousand? Ooh. Fair for law school, you went to private schools when you hear that number out loud. How does that make you feel overwhelmed? How does it make your husband feel we both very overwhelmed too? Yeah. What's big number? You know, it's easy. Once you move forward. And you're able to look back at that to know. So is this undergrad as well as law school, or is this all law school? Very minimal. How much is undergrad? You think? Probably twenty thousand of it. Okay. It's actually probably exactly that it probably hovering five hundred twenty. All right. And so in this what type of law you all both practicing. We're both much lower of what Gatien I'm doing plaintiff side work with on. And he's doing on defense general for the litigation. Okay. Will you all aware of this that throughout the process or has been an eye opener here recently? Well, we both weren't married at the time. We got married after law school. We both went into with like interesting being around two hundred fifty. So we assume oh, so it'd be like a mortgage and missile be at, but we get married to another kind of you know, out of together just doubled the fun student loan debt. So all right. So this is the reality this where we're looking at both of you have graduated pass the bar and are practicing. Yes, I did began practicing on this year. What is going to be the household income this year, it'll probably be about hundred twenty five into nine combined. All right. That's obviously the early on the ramp process. Correct. Correct Inca as you look at this. You guys have you bought a house already? Now, we haven't because of the debt we started paying off all our credit cards right now, and and so far were on credit card debt free. And so now, we're at paying off one one more private Mona five thousand and then after that is that five twenty. Oh, okay. All right. So how much credit card did? Did you all pay off? At least fifteen thousand. Thousand five alone about thirteen thousand week guy down about five. Okay. So you guys were just doing the debt smorgasbord weren't you credit cards where you live and off those? Colossal. Okay. Now. Here's the thing Christina because you all have had a shift because you've got intense on you've been paying off the debt. That's a good thing. And what small debts important to do? But this next one this mortgage standing in your way, this law school on this one is going to take a concerted effort. Okay. Like visit one of those that you guys are going to have to sit down and really look at this. And you're gonna say we don't need like a potential game plan. We need a plan. I love the fact that you haven't won for route to try to buy a home because I wouldn't right now. I just wouldn't I would attack this debt this student loan debt to get it out of your life because your husband had a half mil. Right. And as income increases if you all will do this. If you all will just get focused over the next three to four years, I feel like being intentional in may take you five, but as you income grows if you keep lifestyle the same, and you grow them out your throwing this debt. You can get this out of your life. Now, the largest amount that I've seen was six fifty. Okay. That wasn't too medical doctors that were similar situation. They got married, and of course, everything doubled, but they were able to commit to this plant, which meant they found a modest place to rent they drove the cars that they have and as their income increased the check them out that they were paying toward the debt increase. Now. I'm going to tell you the six hundred thousand took them around six years to do that. But on the other side of that Christina what you'd hear me now their income that they're making. It's staying with them. Okay. Don't let this hang around because it will steal your joy you look at this. And you go this is what we've done, but I know you all can attack this. So is your husband on the same page with you? Okay. Okay. Okay. And that motivation is going to be important. But here's the thing motivation. It's almost like bathing, right? Like, we bathed day to get clean. And so you're going to need some daily doses of motivation to be able to stay motivated. All right. So I would get some kind of mom that you shade in on how much you're paying off or something you put for every ten thousand you knock down because this is going to be a marathon. All right. But I promise you if you all stay focus as your income, your income's going to grow your making one twenty five right now, you know, what you can make out there based on work ethic. So stay focused and above them. Make sure you're working together as a team. Okay. All right. So this is big. Okay. VIP's you get into student loan debt. And I'm gonna tell you average student loan debts thirty seven thousand out there ever somebody that's out there that's making twenty five to thirty year thirty seven thousand can fill like a half million. And so it really isn't about the size of the debt. It's the size of the fight in the individual that wants to tack this and get it out of the life and Christina. I know you and your husband together. Talking and being focused you've already paid off fifteen thousand that's great. But you're going to have to stay on that path you need to be careful because you'll start to get this mindset of oh gosh. I just wish it could be done. I know. I know you do, but we can't wish we gotta work. All right VIP's. We told you. We'd love to meet you here at Ramsey solutions right here in Brentwood, Tennessee, definitely what you to come by the office. The I'm out traveling all over the place, but DWI is typically here. And so if you're near the office swing by we'd love to meet you you can go to the front desk. Ask for David Wilkinson d-w, and they'll reach out to him and find him. But if he's here he'd love to come down and get a picture with you. I think we have one picture they're going to throw up of a couple that swum by airs you look at it right there looking all style was what it beard and everything I got beard envy. But I'm not gonna talk about that right now. But to come by to take a photo, and I'm gonna tell you something getting a chance to meet you. We love hearing your story. Face to face. This Kellyanne Jimmy Kelly is a police officer Jimmy as a self employed business person. But here's the beauty of it. Come in by here. I think they got reenergize meeting up d-w because they told us that they're going to be back in six seven months to do their debt free scream. You see it's not an accident. That's not somebody. That's just hoping things work out. These people are focused and so killing Jimmy. Thank you so much for coming by. It was great for DWI meet you he had a blast talking with you. And I can't wait to meet you when you come back into your debt free screen, so VIP's if you're near the area and we've had people come by. And I've met them DWI method taken photos, we'd love to be able to meet you and to be able to see you and get face to face with you because that's fun for us. The great opportunity to meet you into hear your story. Face to face. All right. I'm going back to the phones. I got Danny on the line, Danny? How are you? How are you? Oh, I'm focused not finish, my friend. You're calling me down in Atlanta. Please tell me you're not driving that traffic. No, sir. All right. Okay. Very good. Well, how can I help you today? A quick question for you on twenty five I'm engaged, and my fiance has a special needs on and were expecting our first child in February. And I'm just trying to figure out how can set my family up for six. Yes. Or kind of a brand. Plush, yet is a broad question, buddy. But you've got a lot going on with the specialties. Boy, what does he have? He's got something skins in Sicily, basically, his brains not firing the way to okay. So. Yeah, that's basically, okay. How old is he he he's eight years old. Okay. His he and therapy and treatments for this work trying to get him into the trying to do an equestrian fair regained control this other than that. He's in a wheelchair. He's nonverbal. Okay. I'm sorry to hear that. I know having a young boy myself with special needs it can definite-. Definitely be a challenge. What I would say Danny with what you're doing being focused like working through the baby steps that's going to be the thing that's going to help meaning getting intentional attack in debt. Like do. You guys have debt right now. Nicer that for him wanna just. I love that. So debt-free being intentional you guys talking about. You're getting married if we're gonna do it Knicks them. Okay. Very good. So here's what I'm gonna give you some tips working through the baby steps get your three to six months of -mergency funds docked up just because you're going to feel better. She's gonna feel better. Once you guys have that at once you get married, but with the marriage, listen to me, Danny is going to be important right here. You got to set a budget on this thing. Okay. Because they can get out of hand. Now. Listen, Dan, it gave crazy. I know by wants you to talk with her and get an idea of what she wants the wedding. The look like because here's the deal. Have you ever been to a steakhouse, Danny? Yes. All right. Okay. I'm red blooded American to you know, we go into say, you know, how they you go in and you get a steak, but they give you a baked potato on the side. Okay. This steak is the main course, isn't it? Yes. Okay. The big tasers. They're hanging out. All right. Listen to me. Nobody told me this. But I'm about to shoot straight when it comes to the wedding, Danny? You're the big potato. You just listen you serve a role. You're just there on the side. Okay. She's the steak, and so it's important to know this going in just so you can be aware and be on the same page. But I'm serious though. I want you guys to come up with a dollar amount that you're willing to spin and only want you to do cash on this wedding. Okay. And so it walking through this new baby. Come and you have an emergency fund and stuff in place. It's gonna love you to breathe, but just trust me, my friend. Stay connected to those baby steps and stay on that track. Dan, you got a lot of new stuff happening your father to a special needs. Boy, you got a new baby coming and planning on a wedding proud of you. Because the sign of a real man is take care of responsibilities. And so you guys talking together and talking about this wedding. This is a big expense. It's a big deal. But remember the wedding is the beginning. It's not the finale. And so that's something. You was wanna move together. And go forward, I'm gonna tell you this. I'm on a gift you something right now. Get you guys plugged into financial peace university to be able to go through this. This. So you guys can look at finances right now individually right 'cause not married yet. But once you get married now, you guys can start to look and to talk and to work as a team. I think it's very very very important. Okay. So here's the deal. You all know, I've been working on a very special project that I'm very pumped about and I've been working hard on it. And for those of you that are watching right now, the YouTube channel, you you see in me. Hold me. Right. Okay. And I'm holding holding me what I'm holding up is the book everyday millionaires. How ordinary people built extraordinary wealth and how you can too. If you're watching on channel. You're seeing me right now pointing at me, and I'm excited about this. I'm excited about this for a few reasons this the ticks, we did the largest study that's ever been done on millionaires. Meaning we talked to over ten thousand of them. We wanted to find out the truth. I wanted to bust some myths in the mouth, and I wanted to make sure we uncovered the truth and the reality of exactly what does. Millionaire. Look like these days. What does it take? Then. So when you get your book, you're gonna learn the real truth about what it takes to become a millionaire. And here's the deal you can pre order today for twenty bucks now twenty dollars. You say, oh, Chris. Well, that's a great deal. I know it is. But I'm not done. Guess what else you're going to get when you preordered the book for twenty dollars today? I'm also going to throw in fifty dollars a bonus stuff. Okay. Now, those watch YouTube channel you're seeing this bonus stuff right up there. Those listening. I'm gonna tell him twenty dollars to get the book, you're gonna get the audio book, you're gonna get the book, and you also get to video lessons. One from me telling you how to retire inspired. And then another from Dave talking about the it's okay to build wealth. These two lessons alone are fantastic. And you'll get a lot of information out of those especially really start to dig in and look at the reality. So here's the thing. I don't want you to miss out on this. This is the preorder book is going to release on January seventh but by going to Chris HOGAN, three sixty dot com. Com right now, you can Priore yours for twenty dollars. And again, you'll get the book and all the extra stuff will come as well twenty dollars do it. Now as always those of you that are listening. You're going to have an opportunity to get a Lincoln the show notes for those of you that are watching on the YouTube channel, you see it. Just click the button, you get right over there and get yours pre-ordered today. I can't wait for people to get the stats to read the stories about these millionaires that are inside of here because it's been absolutely phenomenal. It really really has. Okay. So I was doing my research, and I came across on article that I had to share with you. This is from the business insider, the title of the article is people retire early for two reasons, and it's not about money. All right. Let me throw them a reader's on. Because wanna talk to you about this. It was talking about the whole process of early retirement. And why people do it, right? What are they looking for? What are they looking to accomplish? And VIP's I'm going to get to it. The bottom line is the two reasons that article talked about was freedom and time like think about it. People retiring early because they wanna have freedom to do the things that they wanna do when they want to do it. But they also want to have the time to spend on things that they care about in a few lines in here that I absolutely loved. It was this you can't put a price on the value of early retirement being able to do that. And to get your time back. It's amazing one gentleman retired thirteen years prior to age sixty five and for him. He said, you know, what the idea to know that I was working towards something to be able to have time to do the things that I wanted to do he said it was priceless. And he said he found that early retirement was more enjoyable than just working and so love this one. And this ties in with my friend can Coleman who has the Ken Coleman show where he's helping people find their passion. But here's what he said. He said to me. Early retirement simply men having enough money. So I didn't have to worry about money, and I could finally follow my passions. And find new ones, that's an awesome statement to not only follow your passion. But to find new ones things that you enjoy and so- VIP says people are working hard and being intentional. I want you to have a plan. I want you to be able to identify what's that thing. You're trying to do. And why is it matter so much which then brings me to people being aware of how much it's going to take to be able to retire early. So here's what you need to do you need to get over to my website. Chris HOGAN, three six dot com. A to do yard Q. Okay. If you haven't done the retired Spar ocean yet, then you sitting in the dark because you don't know how much you're going to need. You don't know what your idea is of win. And where the ARA Q will help you with this because you plug in how much you wanna live on per month. And how many years you plan to retire? And then how much you currently have saved and do the calculation for you. It's a tool so it gives you an idea. A ballpark of how much you're gonna need. Right. But then it takes it a step further and shows you how much you need to be investing to be able to get there. And so yes, I love this article because being able to retire early. It is going to give you more freedom. It's also going to give you more time. And for me, it's a matter of being aware of this. Because I want to be in control. I want to do the things I wanna do. And I want to be able to do things with people that matter the most so again DWI going to put a link to this in the show notes where you can read the full article, it's not a long article. But I also want you to share that information with friends push that out to a brother or a cousin or you unsure if they're on pace for retirement are they ready to live their dreams spread this information. And also want you to share the information with them about the show, tell them there's bald man on the radio talking with a high pitched voice. That he's talking to people and shooting people straight. You know, why the more we share this information? The more aware we can become and we can start to take steps in the right direction because we're not finished. We're getting focused because we're making things happen. All right. If you've got a question or you wanna share success story? I want you to call me the number to call is eight four four two eight three nine three three again. That's eight four four two eight three nine three eight three call leave us voicemails. We're gonna listen to them. And if you don't wanna call you'd rather send us an E mail. You can do that. All you have to do is Email us that ask at Chris ogan three sixty dot com. We'd love to be able to hear from you. All right. I'm going back to the phone system. I'm going up in the mid west to a high. Oh, I got nickel in the line mic. How are you? You know, you go buddy, I'm focused not finished. How can I help you today? Question is pretty straightforward. I one of those asset rich cash for guys and started with nothing and starting my retirement extreme late in life in my mid forties. Okay. So I've been. Able to choir lot of real estate. I wanna liquidate and try to get some form of a retirement plan together. So essentially then selling property off out of the thirty five I probably still have eight or nine mortgages. Okay. Every year, we're paying off more more K. You know, we started with about two thousand my brother, and I to maybe four thousand thousand h now we have four or five million. We don't have any time really couple of hundred thousand put away. Okay. And other words, I'm tired to come to my life eight hundred let's grab some equity and go out at entered. So that'd be another way. Yeah. And I think this is one of those. Let's first and foremost, acknowledge you all have worked to build a million dollar portfolio. Correct. That's right. I mean come away. Yes. You've pulled up your boot straps, and you've worked and you move forward. Let me ask you this though, you're playing with real estate when you first started was it to buy and hold for passive income or was it to buy an eventually sell to cash out that evolved over the years. It was basically to get out of the ghettos and by the millionaire thirty obviously didn't happen as quickly wanted to. But you know, I'm still a functioning workaholic, and I like to spend more time at home. I have a bit okay causing me to travel. So I won't be home more. I don't mind working forty hours a week. Let's get it from eighty down to forty and start cashing in date. Okay. Very good. So see Nick what you've had is a pivot in life. You've worked hard to get here. And now you ready to start to slow down and back a little bit. So what I would do is really take a look and look at these properties identified the ones that you are ready to sell meaning of those, you know, you'd have to walk through and look at your occupancy rates for the renters and all that stuff, but dentist those out of the thirty five you've got nine you're still attacking so you're attacking debt, but look at the ones that are paid off. What are the four to five of those properties that you'd look at and say, you know, what these are properties that I would sell and as you sell those property. As you get that cash now, you can get that money sit down with a Smartvestor pro and begin to build a portfolio. I think that's gonna make you feel better. It's going to help your wife to feel better because you can look and you'll see that dollar amount that is aimed toward retirement. So I would say this to Nick, it might help with your wife to be able to talk through and walk through what your overall planners like she thinks if you're buying these to hold that you're planning to hold onto them forever. So let her hear that pivot in your approach with these that you are looking to sell you are willing to sell and to look at that and really start to identify. Hey, which ones are we doing? Now, this will be important for you to really lay out on paper and look at but you're gonna have to think about it because the pivot that you had was obviously you're wanting to slow down a little bit. You got some other businesses. You got other things that are going on. I think that's fine. But you're going to have to also search inside your heart. Are you serious about selling these because what I found with people that are in real estate? They are collectors. That means they buy and they hold onto that thought of selling it, it can be painful. And so what do you need to do is to be very serious about that and talk through and walk through. And I know you get that dollar amount in you're gonna feel a whole lot better about yourself and what you're trying to accomplish. All right, listen, if you want to join a community of other future millionaires head to my Facebook page, go to Facebook dot com slash Chris HOGAN, three sixty and click on the group section and join Hogan's everyday millionaires. Now, I'm actually going to give this group of shout out. And I'm gonna take a question from this group Alexis from my Facebook group says what if you're not putting retirement savings into an employer 4._0._1._K because they're plant sucks. What are some good personal options, so Alexis first of all, I appreciate you being direct, right? I liked I like people to get to the point bottom line is this whenever you're talking about a 4._0._1._K you're talking about the opportunity for pre-tax. So it's a number one way millionaire said that they built their wealth, by the way. So looking at. This. I want to know is that the plan or is it the options that you're limited to invest in inside the plant, so do me a favor grab that thing. Go sit down with the Smartvestor pro. You can find one in your area by going to Chris HOGAN, three sixty dot com. Click on the dream team button. You can find one sit down have them look at that. Because the pretext is a huge opportunity that we don't wanna pass up. You also mentioned Roth IRA's Roth IRA's or great that's after tax dollars. So there's after-tax growth tax free growth, rather, and the government can't mess with it anymore. So I like the combination of using these things all together kind of look at it. Like, a stew. Right. We're wanting to make sure we're getting the right kind of ingredients and they're working for you. Because your money's two best friends are time and compound interest. So we want to get that working. So grab up your plan. Get connected with the Smartvestor pro for someone out there. That's listening that doesn't have access to a four one K at all. That's where you wanna look at the Roth IRA's IRAs, but also even investing in growth, stock mutual funds outside of retirement, which. Is something that's available as well. The bottom line is as we've got to grow our money. And so it's important to do. Right. Listen, I want to thank all the callers, the everday millionaires, even everyday millionaire Facebook group, thank you all so much percent in the questions, the people that sent in the stuff about panicked and pump. Thank you. And as always I wanna thank Amanda. My phone screener. Bobby my audio TEK. And of course, DWI the show's producer VIP's until next time. Remember don't make excuses make progress? Before I let you go. Here's a quick highlight from an upcoming episode. I'm gonna share a great story about a woman and Bonneville out Berta, Canada Janine and want people out there to understand what giving does to the spirit. I have been witnessed too many great works in the last four years that have not only affected my family, but my dear dear friends, it's called the ripple effect. If you enjoyed this program we at Ramsey solutions have other podcasts you may enjoy as well like the Dave Ramsey show. If you're looking for boring, financial, talk, you're in the wrong place. This is not your mother's 4._0._1._K meeting this life on the radio, and it's just downright entertaining. That's why there's about fourteen million of you out there today. Thanks for hanging out with us, America. We're glad you're there to hear full episodes. Just search Dave Ramsey, and I tunes or go to daveramsey dot com.

Chris HOGAN VIP YouTube Danny Christina Dave Facebook Diane James Jeanie Smartvestor Eva Ramsey solutions Janet Jeannie Lyft
If You're a Freakin' Liar You'll Get Ghosted (Hour 2)

The Dave Ramsey Show

39:50 min | 2 years ago

If You're a Freakin' Liar You'll Get Ghosted (Hour 2)

"The. Live from the headquarters of Ramsey solutions. The Dave Ramsey show where dad is dumb characters. Kamien doll mortgage has taken the place of the BMW as the status symbol of choice. I'm Dave Ramsey. Your host you jump in. We'll talk about your life and your money. It's a free call triple eight eight to five five two two five starting off this hour is Chrissy in Chicago. Hey, chrissy. How are you? Beatdown try and get through this about fine. Okay. I am my husband, and I are on babysat four and six, and we actually just recently had a pretty bad break up with our BUSTER pro and we're looking for another lawn, but there aren't really area. So we're trying to figure out what other options have. And if we're gonna try and find a financial advisor outside of the front vest co family, where do we even begin? Okay. You were working with one of our smart, Mr. pros, and you had a bad break up pretty much. We they didn't really follow a lot of your principal. And then. I didn't hear your phone broke up who didn't follow our principles. He didn't. Or you didn't he didn't like we've got a five twenty nine set up for our nephew right now. And it's one hundred percent in stocks. And he he told us it was illegal for him to help us to your anything with our 4._0._1._K that work and just like some weird things. We had emailed to set up a meeting to get together. And. We were going on vacation. And we went on vacation. And by the time, we got back from vacation we had a letter in the mail that said that they were no longer going to work with us. And when we called to find out why they didn't answer phone calls, but didn't return any voicemails completely ghosted. And we were able to get a hold of the owner of the place. And he said that they didn't allow us anything. And it was none of our business. Why they wanted to dissolve the relationship. So we were pretty. Blindsided by that. And so now we're trying to move on. And there aren't any. Other options and our area. I'm gonna put you on hold. I wanna get you in touch with our Smartvestor pro team here, and we can do two things one is only the bottom of what happened there because if that's exactly the way it happened. And that's obviously not acceptable. That's not who we end ores, we don't endorse people that do stuff like that. And then Secondly, the see if we can help you find someone in a different area. So, hey, thanks for the call. We appreciate you calling in. I wish I could be more help. But what I can do is put you some folks that make sure you get helped on our team, and I can promise you you will get an answer. Thanks for calling open phones at triple eight eight to five five two two five. I will tell you folks, this one hundred and forty staff members that chick every lead in every. Process that goes on with us, mar vista pro or with any of our LP's, if you send if you post your stuff on the website, and it goes in we follow up with you and see how it was. And so oftentimes when I get a call like that on the air, we find out later there's something else going on. And I'm not saying that Chrissy not telling the truth. I don't know. We'll find out though, I can promise you that. Because that's not. Okay. But sometimes I you know, I had a lady call the Smartvestor pro told her to to to buy single stocks, and we found out the guy she's working with Smartvestor fro. We call them followed up fair. And so she was just confused. She I guess she thought everybody was a Smartvestor pro. I don't know. But so their stuff like that that happens. And I think that's what happened the Chrissy. But we'll get the bottom of it. And if the guy's truly jerk is the way, she's laid it out, then he won't be a Smartvestor pro anymore. We can handle that by the other day. You gone. But if you know something else is always almost always something that I don't understand. And I wanna understand every piece of the detail. Open phones at triple eight eight to five five two two five Lena is with us in Milwaukee. Hi, lena. How are you? Hi, Dave, glad to talk to you too. My husband, and I are questioning if we have enough life insurance, we're on step six. So I just kind wanted to get your take on it. So he currently has a seven hundred fifty thousand dollar policy, and I have a two hundred fifty nine he is a sole breadwinner. I stay at home. We have about fifteen years left on. We got him about five or six years ago. Heard of me feels like we need a little more. And I don't know if that's just my what does he make? This year. He will be making ninety. Okay. All right. Have about fifty thousand through work for life insurance. Okay. And a how old are you guys? He is fifty and I am thirty two than hold of the kids. Twelve and under we have four, okay. All right and. Okay. And how much debt do you guys have not counting your house? We only have a house good. That's. Seventy two hundred health. We have about half of that paid off good for you. Okay. So the here's kind of how the process should work. Okay. You buy life insurance unto the to last long enough. And generally we say fifteen to twenty years because for most people that'll fit. Until long enough that the kids are grown and gone. Okay. And you've got fifteen year policies. And so your kids just about all be grown and gone in fifteen years pretty close if being years left on this. So that's pretty close until the house is paid off. You'll have that done in this period of time. That's good and until you've had time to build some wealth. So let's say that you were a typical cookie cutter couple. Okay. And you were both thirty two, and you had kids twelve hundred then what we would say is twenty years from today, you'd be fifty to those kids will be grown and gone. Your house will be paid for and you've been working the Dave Ramsey plan. You're probably be every day Megan air by then. And so you're probably sitting on seven hundred thousand eight thousand bucks in your mutual funds. You got a paid for house, no kids at home. But then you don't need life insurance. And so you because you've gotten out of debt and built wealth your need for life insurance has gone because you could live on all that money and no debt and no kids at that point without any trouble agreed. Yes. Okay. But we're not there too. So. You're feeling is correct. But it's a mathematical thing, it's not a feeling he should have ten to twelve times his income on him in. So you had about a million dollars about about two fifty is. We were at. And you need to keep the one. You got to add another one about, you know, buying other tonal fifty thousand three hundred on him or whatever depend on how incomes increasing because if you had a million dollars if he died in you invested it and it made eight percent that'd be eighty thousand a year. You bill. Okay. That's the idea. We're trying to replace his income. If something happens to him in your case, he's got a higher Mary Poppins. Hopefully, you can do that for twenty five or thirty year. You know, as a return on your two hundred and fifty thousand if something happened to you that's about right? So you're in pretty good shape. A policy to this. Go to zanderinsurance dot com. They'll help you out. Running a business is hard work collecting the money owed to you is even harder. That's why I'm a huge fan of fresh books. These guys make it easy. Say goodbye to struggling with formulas and formatting create and send clean and professional looking invoices in about thirty seconds. Plus send automatic late payment reminders to put an end to overdo invoices. Get your thirty day free trial today at fresh books dot com slash Dave Ramsey and enter the Dave Ramsey show in the how did you hear about a section? That's fresh books dot com slash Dave Ramsey. Corporate America has done some of you in the public this service because you think that you can call customer care customer service department and just cuss and yell and scream at people, and that's an okay way to act. So let me give you an example that our companies different. We have a rule here. We wanna help you. We our whole thing is about helping people. It's what we do. But my customer care team on the one eight hundred we take about thirty thousand calls a month in there. And I do not require them to take crap off of crazy people. So if you wanna call up in rage on one of our people. Will fire you as a customer? And I think the word is ghost chew. I think that's what you call it. Right. We will ghost you as a customer, if you're going to be a crazy, but person. Okay. So the lady calls up just now and says Smartvestor pro ghosted her. Guess what? I get I go the break and Kelly goes woman completely lied to me about what she was coming on the air to say, so possibly what she said to me on the air was all ally. Do you think? So I think I know what she got ghosted. But we'll know we'll look into a little bit further. But. We're a little bit of a different company. We don't have to put up your crap two percent of the American public should be institutionalized. And we don't do that kind of counseling. So you know, you got we don't have to deal with you. You know, what does fire you send you Dr competitor? I don't like you good. It's my spiritual gift, you know. I can handle that we helped tens of millions of people who want help and are kind in the process, sometimes people get frustrated, sometimes our Smartvestor pros mess up. Sometimes our team messes up sometimes are e LP's mess up. Sometimes one of the people we endorse on advertising mess up. Absolutely every company let someone down. I let a one of our people internally let one of my good friends down this week, and I've been apologizing through the half the dead gum week 'cause we screwed up. Sometimes you screw up and a company, and you just have to own that and go on. But sometimes you folks think the here just allowed to misbehave in any way you wanna misbehave in. We're supposed to put up with you. Don't be confused. We're not going to will help you. But you're going to behave in the process and not freaking line in front of fifteen million people about me and one of my brands that would be a good idea. That'd be a good idea because I don't have to just sit here and go oh, try to make you happy. They many. No, you freaking lied to Kelly to get on the air lady. No wonder you got ghosted. Okay. That's you. You're now ghosted here to figure that out ghosted. Gimme a break means. We're not putting up with your crap. Is that what that means? Okay. So unbelievable. So you'll here's a plan. If you're gonna call this show don't lot of Kelly Platz good plan. You put one thing on the screen over here. I'm going to be talking about when I come up it better. Be what we're talking about. You know, 'cause I'm call you out. It's that simple. So really not hard. We're here to help you really nice people. But but we're also hillbillies and we just don't like being insulted and having our. Integrity question. So that's how this works. I got one thing to sell around here. And it's trust. It's trust. And you can't trust me if I don't have integrity. And so believe me, we've got integrated it hurts so much. We've got integrity. Open phones at triple eight eight to five five two two five you jump in. We'll talk about your life and your money. Our question today comes from blinds dot com. They have a one hundred percent satisfaction guarantee. Which means even if you miss measure or pick the wrong color, they'll remake your blinds for free. Site-wide savings is happening right now. Plus, you can take an additional five percent off at Brian's dot com slash Ramsey bargains. There. This is a great company to I've known these guys for years, blinds dot com slash Ramsey. Christine is in Minnesota. My husband and I own baby steps four through six. We're in a position to fully fund. Both. I Roth IRA's in January for twenty nineteen would you recommend one lump sum or should we stick with auto paying each month? PS every dollar is amazing best budgeting app ever. Well. Thank you Christine. We appreciate that. Well, here's the thing you could lump sum it, and it could go down the next week. But over the scope of time the longer you have money invested the more money, you're gonna make on the investment. So lump sum as soon as she's you have money to put in put it in. But the problem you have to be a motion Lee prepared for the market drop. Right after you put it in the lump sum, it's not a big deal. You don't lose any money unless you cash it out. No one gets hurt on a roller coaster except those jump off. So if you can put the money in in January. A an emotionally prepared because it's a long term Roth IRA investments can be fifteen twenty years that kind of stuff, then that's okay. As long as you can emotionally afford to watch it go down. And then write it back up. You're gonna come out, mathematically. Ahead. Putting the most money in the soonest. Rather than dripping at him. But a lot of people do let's look at the advantages of dollar cost averaging and part of the advantage of the power cost. Averaging honestly is just the emotion of it. You just get to watch it. Go up and go down, and it doesn't hurt his much because it's not all in there yet. So you can leave it with the auto draft, and that's going to be more emotionally appealing mathematically, again, if you can hold your nose if it goes down and ride it out you'll be better off to lump sum it. Sarah's weather's in Des Moines Iowa. Hi, sarah. How are you? And good. How are you better than I deserve? What's up? So I was calling because. I need to know what you said just on getting my husband on board doing everything I asked him to his following them system is doing everything like that. But he's not engaging or changing his mindset, and he doesn't want to be part of the budget meeting. What do you? What do? I do. How old are you guys or twenty nine we just got here? He's in the end of timber. Oh, wow. You're brand new married. Yes. Then we decided to start this. Okay. Cool. What you do for a living. He's a apprentice Plimmer. Okay. And what's his dad do for a living? He's retired. What did he do for a living? He was. A N O. What's it called something for DZ's here in Des Moines? He did like. Research and development, and that's what it's called. Okay. You think his mom handled the money in his house growing up? Yes. Guessing. Okay. So what I hear is a guy who works with his hands. And he's used to come at bring bringing the bacon and coming home and want it on the table. And what he watched his dad do is whole life and mom took care of the money. And so now, he just got married, and he thinks it's gonna work that way there. Because that's how it works before. We get. Yeah. Yeah. That's how it worked his whole life watching. It's only models had. He's not a bad guys hard working guy. And his parents are Greg guys. They're great folks to there's nothing wrong with that. It's just is not the most efficient model. And so he's looking at you like you're from another planet when you're describing this weird way of doing things, I how he grew up. Yes. Okay. Yeah. So this is not like him being obstinate or a bad husband. You've been married a whole month. He can't be a bad husband. Her. Yeah. Well, except for this one little thing, you know. So what I would do is say is just say this to say, listen, let's try something different. I need your help as my man. I want your I want you to motionlessly carry this white. I don't mind doing the math part. But I want you to grasp where the money's going. So that we're making our decisions are big decisions together. And then I'll write that checks out. I'll make sure the bills are paid. And but, but I I need you to carry the weight of this household with me my man. Okay. That guy that we're talking about can hear it. If you say it that way. And this is what the TV off. No interferences, and you looking deeply into his eyes. I need you to as my man to help me carry the weight of this house that guy here that won't. He can I ask for more questions. Yes. Ma'am. If I want to go to the money and marriage here tomorrow, and he does not think that we should go. Oh, well, I'll give you a pair of tickets since you got free tickets. Now you have to hold on. In the lobby of Ramsey solutions. Tom name Lia with us. Hey, guys. We are way better than I deserve house that I love it. Welcome. You guys live. We are from northbound over Massachusetts. But is about twenty minutes north of Boston. Very cool. Welcome to Nashville Accu all the way down here to do debt free scream. Well, yeah. And the patriots are playing the titans all they are. Inside. So it wasn't a good time. That'll be fun fun weekend. Very cool. Good. Well, welcome. We're glad to have. Yeah. So how much debt of you to paid off? I have to look at my number. I'm sorry. I'm nervous three hundred seventy six thousand two hundred and forty dollars. Love it. How long did this take six years dot it and your range of income during that time, we probably started around one twenty and right now about two eighty white ago. What do you guys do for a living? I'm a real estate agent banker at Andover. Mass cool, I'm nurse practitioner. Awesome. Great careers. So I'm guessing the link time and the amount. Maybe you paid off your house. Oh, yeah. We did you are debt free house and everything I'm looking at where people real estate agent with a paid for house. Amen. Unicorn. That's rare. So it really is cool older you too. I'm sixty one and Amy is seventeen. No. Forty nine. Played. Well, played man. Congratulations. How long you guys been married eleven years, and we got married in two thousand seven and. Had been single for quite a while. He had been single for quite a while. And we met at my nieces play, but we kind of knew each other from site from a church and free Christian church current tending. So so what happened six years ago that made you decide the lean in and knocked US House out this fast. Good question. So at the time I had switched and decided to teach at a university in my income had been cut. We'd just came off several years of very poor real estate market, and we had been racking up debts with credit card car payments, hold equity loan, and my brother got married in two thousand twelve and we used we maxed our credit card to go to the wedding and took his wedding gift out of our home equity. Cow. And then decided enough was enough. We weren't going to do this anymore. And we found you I actually got invited to a thirty day challenge group on Facebook that was. That was about goal setting. And I my listed out your goals and my top goal was to get debt free and on about day sixteen the video said, hey, if you're trying to lose weight follow this person over here. But if you're trying to get out of debt, go find Dave Ramsey. Wow. And so I had heard your name from Fox News. And so I was for me with your segments there. But I had no idea that all this existed and. I think we decided not to use the credit card at that point. So I really desperately wanted to buy your book, and I had to wait. Can I couldn't charge? But we read the book and immediately started turning things around and have to pay it off the initial debt we decided to just go for the house over that keep going keep going. Wow. You knocked it out. How's it feel not of a payment in the world? Very cool. Good. Yeah. It's from six years ago this complete. I mean, you're a completely broke dead debt deeply and stressed out. And I mean, you're putting wedding gifts on home equity line. My goodness. I mean, that's broke all the way. Now, you don't have payment in the world that we don't we we own cars. We really have nothing. We we don't use credit card one. We don't even. And. My son disfigures college. He actual graduate in December. He's taking his last class now, and he was cash flow through college. So he'll come out with no debt, which is another nice thing. I'll love it. I love it will congratulations. You guys. Thank you so much. This house worth right now. Like probably close to five. Okay. Yeah. Yeah. Put you in really good shape. Yeah. Well on. That's awesome, guys. Thanks so much. Thanks so much. What do you tell people the key to getting out of debt is? Focus and intensity. Nicholas huge. It was hard. Definitely we paid off the initial that. And then when we started the hosts it felt like it was just a really long haul to get here. And there was a lot of times that we've kind of looked at it and thought, well, we don't need to be going at this intensity. It's it's a house payment. Everybody has a house payment. And I think I'm just listened to your podcast a lot every day that I drive a lot for work. And so I have you on the car a lot, and it's just very encouraging to keep hearing people thinking that's going to be us someday. That's going to be us only. I really thought I was going to come down here and just have a cookie and sign my name on that wall. I wasn't having an intention of doing this. But. I am surprised her. I. Okay. The patriots playing. It seemed like it was. Yeah. It's destined. It was. Yeah. Very cool. Very cool. Well, we're honored to have you here. And very proud of you who are your biggest cheerleaders. Oh, each other. Yeah. I would say each other. I mean, most people, you know, we don't really discuss this thing with a lot of folks like anybody, really so. You know, if it was one of those things where we knew we were doing this and what we're doing. And why we're doing it? We, and I have to say that you know, she is the person who is the most focused. The nerd. He also has a degree in that Nommik. So that yeah, there's that thing and says she's very and I'm not I'm a real estate agent. That's right. So what point nickname Amy Ramsey? Well, well done you guys. We got a copy of Chris Hogan's book for you. That's retire inspired number one bestseller. And that's the next chapter. We're going to close the chapter now, we're going to open up the become very wealthy chapter. The everyday millionaire chapter you'll be there are no Tommy already got a half million dollar network. Just on the house alone. Not to mention retirement other things I'm sure that are underway. So well done very well done. We've got a copy of that for you. Congratulations. We're proud of you. Thank you. Thank somehow. Right. It's Tom Namie from Boston. Mass three hundred seventy six thousand dollars paid off in six years. Mega one twenty two to eighty count it down. Let's hear a debt free scream three two one. We're debt free. There we go very very well done. Very well done. All right. Let's go to Nancy in Louisiana. Hey, nancy. Welcome to the Dave Ramsey show. Hi, thank you so much. My husband just recently retired. He's sixty four I'm gonna be retiring in June. I'll be sixty two and we were wondering what would be the best time for him to start receiving social security. And the reason we're asking is because I'm gonna teacher I'll be affected by the government pension offset. So basically, I would receive as a spouse purchase those security or zero as a widow so thoughts where she should start taking it now. Here's the math on it. Okay. If you take it now, and you blow the money. No. But if you were to take the amount now and invest it up until say sixty six and compare the return on that investment with how much extra you would have received. If you waited they'll sixty six you come out ahead. Plus, of course, like you said when you die. You don't get social security more in your cases double-dip so the because they offset and so if when you die you lose your social security string. But you don't lose the money that you got from social security and use to invest, so even if you don't need the money, especially if you don't need the money the money now and invest it in pilot up, and you wouldn't be asking about it. If you didn't need. I mean, if you were gonna position that you had to have it, you would've just gone done it. So you don't have to have it. So take it and. Up in an investment, and you'll end up more money during life and more money during death doing that always take it early unless there's some kind of extenuating circumstance, it generally works out to your favorite the way the map plays out you'll make more money on your money than they will pay you to wait that's one of the mounts. This is the Dave Ramsey show. So millionaires someone with a million dollar or greater net worth not a million dollar income. Your net worth is not your income. Your net worth is your assets, minus your liability what you own minus what you owe. Now, we have people who are even in congress or too stupid to know, the definition of a millionaire a billionaire is not someone that makes a billion dollars a year. I watched one congressman come out and sit down Trump's not a billionaire. He didn't make a billion dollars after. Well, you idiot. That's not what a billionaire is not taking up for Donald Trump is just know the definition of something my gosh, it's an accounting term. And it's not up for like, you're redefining what it is. Okay. A million dollar income is not a millionaire. You can have a million dollar income and have no money because you spent two million. You could be broke its shop. Believe me, I may athletes all the time. The do it. They have a two million dollar income. They have no money no idea where it went. So your net worth is what you kept it your, assets, monitor liability. So when you're what you own minus. What you owe equals a million dollars. Then you're a millionaire. Now is that the end of everything? No. But that's a really really good start to really good start used to be back in the day. If you're a millionaire that was like daddy warbucks on little orphan any, you know, a millionaire, and it's like today that's more like a billionaire, really probably, but millionaire probably means that you probably have a five hundred thousand dollars paid for house, and you got seven eight hundred thousand dollars in your 4._0._1._K, which means you got a sixty seventy thousand dollar your income with no debt in retirement. Pretty good place to be versus trying to live on social, insecurity. Right. And so millions a good place to start as a measure of saying. Okay. Now, you're wealthy. Broad definition. That's wealthy. So you can become a millionaire. It really can't is nothing to do with your family's money. It has nothing to do with your level of education or where you went to school. You don't have to make five hundred thousand dollars a year to do it. You just have to be intentional with your money. Now our team here at Ramsey solutions. And Chris HOGAN Ramsey personality have become experts on millionaires in the past several years. We start doing a millionaire theme hour here on the air talking to millionaires asking them how they became a millionaire. Did you inherit your money almost none became millionaires by inheriting their money? It's less than seven percent. So when someone says why down and get money inherited. Manny, Amy, what is your your spirit animal? I mean, really says ridiculous. Your whining just goes on off infinitum. So the truth is is that almost no one became wealthy in America today by inheriting their money less than seven percent. We've done the largest study of millionaires ever done in North America. We can't find anyone that's even close. We end up interviewed ten thousand about ten thousand four hundred now millionaires. And found out what they did where their money came from how they got it. Now. That's good information. If you wanna be one you're going to want that information. Chris HOGAN, put it together in a book. Called everyday millionaires. It comes out the first week of January ordinary people built wealth built extrordinary wealth and how you can too. The books twenty dollars. We're gonna give you fifty dollars where the extra stuff if you buy the book early. Wiles. Would you buy early way it'll January right? But I'm gonna give you fifty dollars for the stuff that bribe you we're going to give you the everyday millionaires audio book, which actually Chris finished recording that yesterday, and if you've ever heard Chris Hogan's voice, you could listen to that guy read the phone book. So I mean, his Abobo. Yeah. So I can't even begin to Chris HOGAN. But anyway. Everyday millionaires audio book the book and the video lesson from Chris on how to retire inspired. And from me of lesson on called, it's okay to be wealthy, which it is. Okay. To be wealthy. You didn't do anything wrong. A matter of fact, you did a lot of stuff, right? You're not a thief. You're not a crook. You're not a jerk. You're not a bad person. You were just successful. Oh, darn which activates weiner's around you. I know that understand the political climate, but whiners are gonna wind. It's what they do. That's why we call them whiners. You don't let that stop you from being successful, you go be successful you go change your family tree. You're not going to be ashamed of having lived on less than you make and invested money while everybody else spent their money, and then you ended up with some wealth. There's no shame in that. No shame in that game at all. So every day. Megan. Here's twenty bucks, daveramsey dot com or Chris HOGAN, three sixty dot com. And we'll throw in. In the fifty dollars worth of stuff. I just love this book. I love what this is says that the American dream is alive. And well, it says that you can do it. You have the dignity of deciding what your future is ready set. Go what I've been saying for twenty five thirty years here on the air. But now, we've got the data points the indepth detailed properly done research to prove it. It's indisputable. You can win Regina is with us in Phoenix. Hi, regina. How are you? Excuse me. I'm good. How you better than I deserve. What's up? So I did really dumb. And I'm all three now. I don't know where to go or what to do. I. Disability for five years. And I have no skill set. So I went into school and now I have a loan and pick me out. And I don't know what to do with it at this point. Because I don't want to. I don't want the long to get bigger. And once I get out of school. And I go to work should point side about this time. I wanna do everything I can do to make the won't go away. But I have no clue how to do that under voiced. It's just me. So I. How old are you? Fifty six what are you studying in school? Medical coder filler. Okay. And when will you graduate from that? Twenty first. And so when you get out of that, and you have to start paying the loan back. You get the job, right? Yes. And you start doing medical coding and you get a job doing. I hope you can get one doing that. And. Then you get about the business paying the loan out. I wouldn't have done it the way you're doing it. But I don't see any reason to freak out. Just go. Follow your plan through playthrough. Okay. I mean, just finished. Now, you got you borrowed enough to do the school, and it's already paid to the school, right? Yes. Yeah. No. Going. You're done you're done. No more no more borrowing here, and you work, your extra jobs, or whatever you gotta work to eat while you're finishing up the school. And then you graduate from that you increase your income. Hopefully that was the idea, and then you go back and you knock the loan out. How much did you borrow? In grand? Okay. All right. And what do you make now? Ability. So I make about nine hundred. Okay. And you live you live on that. I yeah. Basically, I got you basically. I don't work right now. I know showed. I mean, that's that's all you got to eat with. Right. So you're eating on that. Yeah. Okay. All right. And if you've done something to keep your lifestyle way down, and then when you get out of this, and you start medical billing, what do you think you'll be making their? Yeah. Heard in the Phoenix area is thirty to fifty here. So your income's going to triple to quadruple by this time next year, which means if you kept living kind of like you're living now, you could pay that loan often about twenty minutes. Couldn't you. Hope you're gonna be just just finish though. Fly through finish the degree get the job and knocked loam out. I don't think you need a break out. It's not exactly what I would have signed up for. But you're there now you can do this. You can do this. I think you're scared because you've been through a lot stronger than you think you are your cancer survivor. Get after Kitto you can do. This is the Dave Ramsey show. This is James Childs producer of the Dave Ramsey show. I'm excited to announce the word now carried on six hundred radio stations across the country defined one near you at daveramsey dot com slash show. Hey, guys, if you're looking for real world, leadership and business advice from the top minds and business. Check out our entreleadership podcast. Hey, folks, Ken Coleman here with love to have you. Join us weekly as we dive into conversations with the top minds in leadership and take your business questions to help you grow yourself your team and your profits. Don't miss an episode subscribe to entree leadership where you listen to podcasts. Hey, it's James producer of the Dave Ramsey show. This episode is over but check the episode notes for links to products and services you've heard about during this episode. Thanks for listening.

Dave Ramsey Ramsey solutions Amy Ramsey Chris Hogan Smartvestor Chrissy Boston Phoenix Megan America BMW Chicago patriots Milwaukee Tom Namie
It's Stupid to Believe Education at Any Expense is Smart (Hour 1)

The Dave Ramsey Show

39:56 min | 2 years ago

It's Stupid to Believe Education at Any Expense is Smart (Hour 1)

"The. From the headquarters of Ramsey solutions. Broadcasting from the dollar car rental studio, it's the Dave Ramsey show. Or debt is dumb cash is king and the paid off mortgage has taken the place of the BMW has the status symbol of choice. I am Dave Ramsey your host. This is common sense for your dollars since gods and grandma's ways of handling money. But it turns out common sense is so rare it's like having a superpower. So it's marketable today in the US, and we have proven that. Thank you for joining us. Open phones at triple eight eight to five five two two five that's triple eight eight to five five two two five. Karen starts this hour in Los Angeles. Hi, karen. Welcome to the Dave Ramsey show. Are you better than I deserve? What's up in your world? While I recently got a new job that pays pretty well. So we're moving my husband, and I and two dogs to Texas. But we do have about thirty six thousand dollars in debt that we want to get rid of the next twelve months. So we're trying to figure out whether we should rent out a one bedroom for about a thousand dollars or trying to find a room in a house for about six hundred. Yeah, we just we're not sure which way to go. Well room a house with dogs. Sounds interesting. Getting rid of the dogs. We can we have a long time. Dog. I was just asking if you're gonna move in somebody's house for the room. Have you got that option? Well, it looks like we do there's some room mate situations where they would allow dogs. Okay. Cool. And so what's your new job pay? About sixty thousand a year what your husband going to be making? About twenty plus commissions. How much commissions? While I'm not sure yet depends on how well. Think it surely nothing's going make twenty no I'm thinking it's going to be in the range of thirty to forty two first year. They're so cool for roughly we're gonna bump up towards one hundred then and you're gonna pay thirty six in one year doing that. And you can either rent something for thousand or you can rent something for six hundred of difference being four hundred which is forty eight hundred a year. So this is a five thousand dollar swing right up to you. I mean, if you can pay off thirty six and being the other rental, it's fine with me be better quality of life. It's not it's not a deal breaker. Okay. But not if you told me six hundred or or two thousand I'll tell you, you know, six hundred, but it's close enough that it's not the four hundred bucks a month is not gonna keep you from paying off the thirty six if something keeps you from doing it'll because your husband in getting commissions or y'all didn't watch your budget or something else is gonna come up. It's not gonna be rent that breaks your back on this with the numbers. You gave me does that make sense. Yes. It does. I think I'm just worrying a little too much about the whole move, I suppose. Well, no, I don't know if it's worrying you're just being very intense and very intentional. Because the reason for the move is to get your freaking life back and get this debt paid off. Right. And so you don't want screw that up. That's not worrying that's being smart. You're thinking through every little thing, you're squeezing every little thing. And it'd be okay. If you wanna call an adventure say one year, we're gonna do the roommate thing and after that, we're gonna be free. And then we'll go do something else. Either months. Okay. With me because the deal is it's not a big enough spread in your question to affect your goal. You can still hit your goal either way. And then you've just got to look at it and go, you know, what's this mean to us at our stage alive, I'm old and grumpy and the chances of me working out something in a roommate situation zero. So I would be renting something to get human beings away from me, you know, that kind of thing. So that's just different though. I mean, you know, we're when I was young and for, you know, an adventurous, it might be fun. But that doesn't sound fun to me. But you can be fun to you Brittany is whether in Kansas City. Hey brittany. Welcome to the Dave Ramsey show. Hi, thank you for taking my call. Sure. What's up? I have a quick question. So I currently list my job. I just started a job about a week ago. And I'm the bait on if I should withdraw my profit sharing and 4._0._1._K to pay off some loans right now. No. Are you bankrupt. If you don't know, okay. How much data have you got? I have a car payment. Total will not the payment, but about thirteen dollars car. Dollars. Yes. Our teen. And what what else? Student loan debt is about thirty seven thousand and credit card about four thousand for all right? What are you making? Now, the new job my new salary is sixty five thousand but for you. What are you doing I t quality assurance? How old are you? Twenty seven don't at good job Britney. Excellent. Okay. And how much is in your retirement account? I don't have anything. Oh, sixteen thousand. Okay. If you need more it'll actually be more next month. How much are we talking about cashing out? I was hoping to cash out all of it. So I can just completely pay off my car, which is much darling. Thirteen thousand cash out thirteen thousand bucks. No, not your car. I'm talking about the profit sharing all the whole thing next month sixteen thousand next month. It'll I'm not percent shore sixteen because I'm tired of this. Okay. Sixteen sixteen thousand and here's what happens if you cash out the sixteen thousand you're going to get a ten percent penalty, plus your tax rate, which is twenty two percent okay now. And that means you're gonna hit be hit for thirty two percent. So mathematically, it's like saying, hey, Dave. I wanna get out of that so bad I'm willing to borrow money at thirty two percent interest, and you, and I would both instantly say that's a bad idea. Okay. She'll no we're not going to cash it out. We're gonna work our way through this debt. And you've got a great new job. You're making more money. You're going to completely focus on this and beans, and rice, rice and beans mate. You have fifty four thousand dollars in debt. You're single twenty seven you make sixty five you should be debt free in two years. Okay. All right. And you can do this. I'll show you how. But I want you to take that money. Don't give the government third of it keto. Yeah. Worth it. You know, because that's what you're doing. That's what you're doing. I mean, given a third of your money just to make a little bit of progress. And it doesn't even solve your problem. The what's the problem is is that you're now paying attention and you're making good money. So congratulations. Good stuff. I'm gonna send you a copy of the book the total money makeover to show, you exactly step by step how to attack this jump on daveramsey dot com. Click Smartvestor, and those guys will help you. They don't, you know, a lot of brokers won't help the little small account like you got but are Ghazal help because they have to take small accounts, I won't endorse them. And so I won't let them be Smartvestor pros. And so click Smartvestor, get a Smartvestor pro in your area. They'll help you do a direct transfer rollover into good mutual funds with your old retirement. And that money you're twenty-seven when you're thirty seven you'll look up and that sixteen thousand one hundred. And you'll be glad it's in there. And it'll be be one of the things that causes you to be a millionaire someday this conversation. So I'm proud of you doing good stuff. Hold on Kelly pickup. We'll get you a copy of the book, the total money makeover will get you going. You call me if I you need some more help as you're continuing to win the job Britney. This is the Dave Ramsey show. If your goal for this years to get out of your timeshare that has no value your plan should be call timeshare exit team. They are the best. They get thousands of my listeners out of their timeshares and get this. It's a free consultation. So call timeshare exit team and get a specific plan to get rid of this bad asset. It is a long process, and it will cost you when you sign up, but they're so confident in their exit service that if they don't get you out, you'll get a full refund. Call eight four four nine nine nine exit. Joining us America. This is the Dave Ramsey show. Open phones at triple eight eight to five five two two five. Derek is in New York City, Derrick welcome to the Dave Ramsey show. Thanks. How you doing? Deserve. What's up? What's going on edge a quick question? I recently got married I have currently eight hundred fifty thousand dollar insurance policy and also have a four hundred sixty five thousand in a retirement account. So obviously before I was married. I had the beneficiaries set of different way. Now that I'm married. How should I should? I be looking to give my wife like one over the other whether it be the life insurance policy versus retirement. What are the pros and cons of each? Where else would it go? Well, I have a son from a previous relationship. So he's seventeen. So for the next few years get into college and law school, I would want to go to him good other than that would go to her. So I just didn't know if that was a benefit to give her the life insurance versus retirement that kind of stuff. If you give her the life insurance, that's tax free. If you give her the retirement as she takes it out. It will be taxable. If it's is it a traditional account now. It's not a Roth, right? I started putting in Roth. But the majority of it is sitting in traditional right now. So when an inherited IRA as you remove money from it as taxable for whoever gets it. Okay. Which would she be able to take that money out immediately? But she pay taxes with no penalty. Gotcha. One last question. So either you could you know, it sounds to me let me just throw out idea. And then you true on it and decide for yourself. You gotta pull this off. But I've got this weird over the top all in opinion about marriage like for richer for poorer in sickness and in health unto the all my worldly goods, I pledge. Okay. And so let's pretend you're seventeen year old was twenty seven my my personal. But it's just a personal belief is that my wife is in front of grown kids. Okay. Okay. Even if she's the second wife, okay? And so, you know, but not not necessarily one hundred percent. But I mean, my primary is to her. Okay. My secondary would be grown kids and your your kids not quite grown. So you know, if I'm looking at your numbers through that lens. I'm probably going eight fifty to the wife for sixty five beneficiary to the teen which would get him on through school and set him up. And I'm probably adjusting that when he's twenty seven. Yeah. I was just trying to figure out I kind of agree with you. I was just trying to figure out maybe I'll put because he would need a liquid you know, who would need to liquid. Money's. It's all liquid. I mean, they can get by taxes on. So it's not really four sixty five. It's more like three fifty. Gotcha. Gotcha. And I have one last question goes insurance. I travel a lot for work, and they cover me when I travel outside the country for insurance purposes when it comes like health, but when I do personal travel, I've never really thought about it. So I just wanna what's your opinion was on getting having insurance when you travel in regards to like more for health reasons than reimbursing for travel expenses. Yeah. I have never bought that when I travel internationally. I just but again, I'm a cash position to cover it. If something came up that my personal policy would not cover on international. I did have a friend gets sick. And in France, and it cost him a boatload for he got home. So you know, he's kinda wishing he had that insurance at that point. But. You know, you just got to you got to ascertain what you think your risks are in that situation had another friend get sick on mission trip and Africa come think of it to them pop it in my head as I'm saying this. So I'm starting to get worried right now. But I've never bought it. I've never bought it. So. That's not to say it's necessarily a rip off. I would just look at it and go this travel insurance. I don't generally buy travel insurance. I figure if I can't go on the trip because something and that completely breaks me probably have been going on that trip in the first place. So it's just to stink inexpensive and I'm spending too much on the trip. If it's that big my whole world is tilted because I don't go on this trip after paid for it. Then it probably shouldn't have been going. So I don't buy travel insurance very often. If I had a huge big thing, we did a safari and Africa for three weeks last summer. I did put a little travel insurance on that. Because there was massive and the cost was up there to Sharon's. Christmas present. So there you go. It's W Asher and wants it James is laughing. Yeah. Well, it is open phones at triple eight eight to five five two two five Lindsay is in Atlanta. Hey, Lindsay, welcome to the Dave Ramsey show. Thank you so much her taking my call. My pleasure. How can a help? Well, I my question actually piggybacks very nicely off your last caller. I am an avid listener. And my sister-in-law knows that. And so she's come to me for some help. And I'm actually seeking your help to be able to help her. She was recently widowed. She's in her early forties. She was left with five children still at home and her husband actually died on a flight overseas. And she was left with two inherited for a one case. And she does not she's been told certain things about what she can do with them. And I feel like it's incorrect. But we're we're I really wanna know what our options with an inherited 4._0._1._K because she's being told that if she puts it into her name once she. Touches it. She pays penalties on it. But, but if she takes anything out before putting it in her name, she doesn't pay any penalties. Is that accurate? We can't really roll it into your name. It's not really an option. Okay. The only the only thing that could happen is she could cash it all out pay the taxes on it. And then start investing in her name, and whatever she invested in her name was there, but you can't roll in air today array into your name, and and you do have our MD on it, which is called required. Minimum withdrawals. Okay. And so you have to do the required. Minimum withdrawals. And. Not huge. But she's got to take some of it every year, and that's based on a table based on her age and so forth. So how much how much money's accounts you've got to separate for one case one of them is about one hundred and ten thousand and the other one is sixty five. Okay. All right and no life insurance. No, no. I know life insurance. No will so any of your listeners who are listening. She was last with MS. So please buy life insurance. Please have a will. I'm sorry. That's so sad and five kids. What's the range of ages on the kids? Her oldest at home still is sixteen and her youngest is six. And so does she have a career? She is getting social security for the kids, and then she actually teaches online and she brings in a couple of thousand dollars a month, teaching online, her children are home schooled. And so to be home with her kids and raising kids she's found that you know to be her her motive income right now. It's not sure how she's making those ends mate that doesn't add up in my mind. But I hope she can make it. That's hope she can pull that together and not have to through and burn all of this money at one in one pile trying trying to pull off something. So if she's not if the social security, plus her online income is not enough to sustain the family, and she's burning on this savings using some of it. Then you've got to do some simple division and say wins the money gonna run out. So if she's got, you know, she got two hundred thousand bucks, and so she's burning twenty thousand a year. She's got ten years. Actually, she's actually making it between the social security and her income, and what what she was trying to figure out what to do with these 4._0._1._K's but dead, but she has remaining to her would be just the mortgage and one car. On the car take enough out and pay the taxes on it. There's no penalties on herited IRA take enough out and pay the taxes to pay off the car. Okay. And that's going to help our monthly then helper monthly work because I wonder monthly to work without burning into this. And then I would let I would get with a Smartvestor pro and set these hair tonight as you can move them around. But you don't put them into your name. They don't have to stay in what they were in. And so put them in good growth, stock mutual funds. And let's let them grow as much as possible. Then it's there and at any point all you've got to pay the taxes and not pay any penalties to do anything like kids college her future. Whatever anything if she needs some money for something. That's there. And I want to try to keep from touching it in the monthly budget. If I can't it sounds like you're getting I'm sorry. She's facing this. Thanks lindsay. Appreciate you calling. This is the Dave Ramsey show. Thank you for joining us, America. We're glad you're here. Open phones at triple eight eight to five five two two five. If you're someone who thinks insurance is boring or complicated after that last call unit. Listen up, right? Make sure you got the right coverage. Isn't you make sure you get your will in place millionaires people who Bill wealth they both play offense. Which means they're doing things that make them money, but they also play defense, and they have the right coverage is in place and do the right things to keep from losing money. Now, we made a five minute coverage checkup that's completely free. We ask you a couple of questions, and then we can give you some recommendations on. If you've got some holes in your plan or not doesn't cost you to do it. It's a five minute coverage checkup doesn't get any easier than this. Just text the word checkup to thirty three. Seven eighty nine checkup to thirty three seven eighty nine or you can just go the website, daveramsey dot com slash checkup. But you need to do your checkup costing as Morella is with us in California. I as Morella how are you? Hi, good. How are you? Dave better than I deserve. What's up? So I have my husband, and I have been falling your plan for we're going on three years now we've been able to pay ninety two thousand and debt down. Yeah. And we're we're almost at the finish line where about fourteen thousand so remaining pay we should have that paid off in three months to go. Yeah, we're be on ecstatic. My my question is now that we're we're to this point. And we wanted to start paying down our house. We have been having this discussion about me going back to school or finish up. My degree who what's your? Human resource management. Are you working? I am I worked for my family, which I absolutely love the the purpose of finishing the degrees for what the in the past. We've had. Volatile time financially staying afloat in the business. And right now things are great. But if there was ever to be another, you know, kind of bump in the road. I'm always kind of the first one that leaves, and it's not because I am the first one to quit it's more because of my salary one of the more higher paid employees. And during those times, I try to go find work elsewhere, and I do as much as I can for the company for free. All right. So the next time you might jettison stay on though. I'm sorry. What was that? The next time. This happens if you had your degree and you landed in an excellent career position, you might stay on. Possibly and so so how much do you like finishing your degree? It's, you know, one of those I really really wanna do things much. Do you lack? A year ten years. About a year and a half. Okay. All. What? Twenty four thousand who just paid off one hundred. Yeah. So you can catch flow twenty four right? I believe so I'm I actually I know. So I wouldn't I wouldn't do it. If you're not go cash flow. But if you wanna cash flow, it it sounds to me like it's got some marketplace value, and it's got some value in the under the heading of just want to do it. Yes. Twenty twenty thousand dollar item you want to purchase if you set it in the middle of the floor and burned it you can afford it. If you pay cash for it, and now that you're debt free and have your emergency fund in place. Yes. And so I guess the only question for us is there is no concrete. Yes. I'll use it in the future as if we need it. It's it's you know, it if you pay cash for it, and it's after your out of debt, and after you have an emergency fund by definition you can afford it. And there's some percentage chance you'll use it. It's not you're not asking to spend two hundred and forty thousand in your household. It's twenty four thousand it's doable. With the numbers. You're giving me it's not out of control. It's not huge amount. If you want to spend two hundred forty thousand Yorkshire sure if you're gonna use it had question your sanity. Yeah. Right. Four thousand as a percentage of your world. You just told me this wonderful story. How you've you already paid off over hundred. This is a four. Of that. Yes. Do it but pay can't pay cash for it or don't do it. And and then hopefully, you'll get some use out of it. When Sharon and I got married. She had one semester of school left to graduate and did not graduate did not get her degree. Fast forward. A couple of years. We had our first child three years into marriage, and I had made a promise to her daddy that she would go back and finish. So we start working that out. So she drives back and forth to Knoxville all summer long from Nashville two and a half hours away to finish her degree. She has a degree in child and family studies. She never used it. And except for the fact that she's a fulltime mom, and that's ultimately use of that degree, right? But the point is she got the degree. She wanted the degree. We could afford. It. We paid cash for it. And we couldn't afford it. When we got married. That's why we didn't do it. So, you know, some sometimes there's a reason to do academe IX because it's expanding your life. It's a life goal. You want the completion of that sheepskin on the wall? Sometimes that's their what we don't want to do is use that as an excuse to go to and fifty thousand dollars in debt and call that education. That's not -cation. That's just stupidity. But you're not talking about that. You're talking about life. Go completion you're talking about. There is a good chance you're going to use the degree at some point in the future. And it is a very reasonable purchase within the confines of your household numbers. And you're paying cash all of those things do it. So very good. Very good discussion. Thanks for calling in. What's happened is let me tell you. This happens, particularly in families that do not have a history of college education. If you're the first one to go to college and your family that kind of thing, okay? You have you don't have people around you to keep you from doing stupid stuff. But if you've got family that this is the third or fourth generation of college education. They'll grab you by the ear and go. No, no, no, no, no, that's dumb. Don't do education dumb. But if you're from a family where you've never done that are in a community where college education is not normal or on a socio economic rung of the ladder where college education is not normal. You hear this message, and it's a lie. Here's the message you here. Education is so important that you can pay any amount for it as long as you get it. And it'll work out. That's a lie. Sly? You cannot go to one hundred fifty thousand dollars in debt to get a master's degree in social work and go to the state and thirty two thousand dollars a year as a caseworker that's stupid. That's stupid. You don't do that. But if you've heard vague things of the way out of my neighborhood the way out of my broken, family culture, the way out of this thing that is my life into a better life is education, and therefore all education at any expense in any subject is worth it. Then you get one point six trillion dollars in student loan debt and people walking around whining like zombies there. So in debt that they can't breathe with a degree in lefthanded puppetry. I've got a PHD in gender studies in four hundred thousand dollars in debt, you're screwed. You're just screwed but somebody should grabbed you by your ears and boxed them and said, no that's dumb. See we can't do education dumb as Morell doing a smart. But I I most often find it say I grew up in a neighborhood where a lot of the kids that I grew up with didn't go to college. And so I can kind of relate to this. I can't hear these messages coming from teachers and coming from policy makers and even coming from academe IX, say education is the answer education as your way out. No, it's not knowledge is your way out and knowledge, there's applicable in the marketplace that pays you more than it costs you to get it. That's where educations your way out. You might be much better off getting a welding certificate that a PHD in left-handed puppetry. This is the Dave Ramsey show. Belene is in Los Angeles. Welcome to the Dave Ramsey show. Kelly. Today, Marc leisure. How can I help? Your name's Brockman house. Call you Dave because we love you so much. My question is we are on to we raise our income last year from seventy five thousand two hundred twenty thousand and in the process, we had a car break down a million times, and we still had dead. And so we ended up buying a minivan. And we're still working the steps, and we are just really hungry to get rid of our our loan for many ban. It's worth about twenty. We oh about sixteen on it. And we just don't love it. And we're just kind of torn what to do. Other than the minivan. Other than the minivan. We have a twenty five thousand grad school, and then about six thousand in credit card, and that should be paid off in two months. So all of this will be paid off. If you kept the minivan within two years, right? Yeah. And that's where we kind of debate because my husband, and I go back and forth on your roles, and you know, it's not. So if you sold them, even what would you get? Well, we have a few options we have a family member. That would maybe let us borrow their car for a few months as we say than cash flow. And then just by something else, and my fear is you know, I bought this car was used we it was new to us but us, and I just we got burned so bad there last used cars that we had drained what we had to spend. And that's why we ended up taking alone for them for the minivan bought a brand new minivan. No, we've got a used one. It was just new to us. Core. Yeah. So used cars aren't bad bad. Used cars are bad. Right. Okay. So if you got rid of this minivan, and you drove a loner for a little while then you would save up and pay cash for a used minivan. Is a different car. We don't love the van. We were you know, trying to grow our family. We thought that was the right? Best thing in the long term. If you were debt free and had them had ten thousand dollars right now. I don't know what we kinda need a target because otherwise that'll kind of tell you what you need to do with this. Because it's this. The minivan is is not really I mean, they're selling it doesn't change your life. It's not it's not it's half your debt. Not even half your dad. It's a third of your dad if you want to sell it and drive the loner for a little while and get out of debt. I don't have a problem with that. But let's for God's sakes have target where we going you need a plan on where you're going, and it does this step get you to where you're going. That's what we're after. And that's the big issue. Set yourself a goal. And then ask yourself. What has to be true? That's not true today for me to hit that goal. Make sixty thousand dollars a year. I wanna make one hundred sixty thousand dollars a year. Okay. What has to be true about me and my life? That's not true today for that to happen for me to be out of debt and have a car that I like what has to be true. And then you could say well, one of the things that that speed up me hitting my goal is selling this minivan driving the loaner so that I can end up three years from now driving this kind of car paid for in cash that is less than our all my cars are less than half, my annual income, and that's what you ask yourself. So I can't really all I hear is. I don't really like the van, but I went into debt to get the van because the other breaking down too much, you need the sod where you're going. That's what you need to decide Ryan's with us in Los Angeles. Hey, Ryan, welcome to the Dave Ramsey show. Metre taking my call. Sure. What's up? Well, my wife, and I are saving cash by hope they won't be able to pay for it all and not have to deal with the mortgage. So it's gonna take us over five years. So we have some of the money in your phone is breaking up to speak directly into place against the have a we have a portion of our money right now and people like you commend and wondering if you have a specific recommendation as far as how much of our savings ship for them there. And as we keep saying every month, it should all of that go into the phone as well. The more you put in there. The more volatility you add to your goal, but the more money you'll make that make sense. And I mean, you might make ten or twelve percent on your. SNP fund. I think what you can look at. If you wanted to go back as an example. And this might help you decide this look at the SNP for the past twenty years and see how many years it did not make at least one percent in the year. Because that's what you're savings is making. And if it's one year, I don't know what the number is. I'm looked at it. But the now what we're doing? Here's where measuring the risk that you're taking if it was ten years out of twenty that it did not make at least one percent, which is not the case. Okay. But that would mean, this is a really risky endeavor that make sense. But if it was one year one time out of twenty freaking years, it did not make at least one percent in the year two times out of twenty years. It did not make well that's a risk. It's not that's not an overwhelming risk at that point. It's like ten percent of the time. It doesn't make more than I'm making my savings on putting the vast majority of it in there does that make sense. So go back and look at that. And that could give you some comfort looking at the track record, and what would have to happen for. This to not work out to my benefit on. What what what's the probability that? I don't come out ahead as a result of being in this and peevish as being in savings and the probabilities pretty high when you're under five years, but but over five years, you probabilities pretty high you will come out ahead by putting almost all of it in there. That's my anecdotal look at it. But if you want to actually dissect and comb through the numbers, it wouldn't hurt you. It's actually a good exercise for you to learn to analyze these things and do the critical thinking Andrews in San Diego. Hey, Andrew, welcome to the Dave Ramsey show. Thanks. Dave. Hope you doing. Well. How can I help today? I've paid off peed off about sixty thousand debt using using your your steps some kind of doing the three four and five six pep combo. Right now, I'm sorry. The four five and six step combo right now. And the one question I have about baby step six I have rental property and a primary mortgage, and when it comes to, you know, throw in large sums of money to get a house paid off quickly. Which one do I choose from all? They're similar in balances. I go to the house my residents and the way I did that was a simple risk management question. If the world completely unraveled in your life, and you lost either your rental property or your house because everything went sideways, which one would you rather lose? What rather lose a rental property that my house payment house because one hundred percent of the occur on a home in the mortgage. So we don't want. We don't want keep the mortgage on the house now. But if you got a rental, that's fifty thousand bucks owed on it. And you four hundred thousand on your house, you might reach over knock the rental out. Okay. And part of the argument or the discussion I should say that I have with my wife is well, if we pay the the rental off I now that that's retirement money pre in clear coming in as opposed to only half of it coming in and having to go back out to mortgage. So that that's. The same dollars, though, if you got a twenty five hundred dollar house payment or you have a twenty five hundred dollar payment on a mortgage on a rental in either one of those frees up twenty five hundred dollars when it's gone. That's it's just it's just one of them's a cost savings and one of them's an income producing asset. But at the end of the day, the smoke clears all the way to the bottom line of your personal PNL, you've got the same benefit either direction. So, but so I just pay off the house if they're pretty close and balances or the home is smaller in a balance. But if you gotta dinky but little rental debt, and you can knock it out like a big old car payment or something and then reach over and work on your house later, that'd be fun too. But if you're sitting with a two hundred twenty thousand dollar mortgage on your house and two hundred sixty two hundred ten thousand dollar mortgage on rental pay house off, I that's that's my reasoning on it. So hey, good question. Man sounds like after it proud of you keep it up. Thanks to James Childs. Our producer Daniels, our associate producer and phone screener. I am Dave Ramsey your host. And we'll be back. This is James Childs producer of the Dave Ramsey show. Once again, you made the Dave Ramsey show. One of the top five most downloaded podcast last year to get your daily dose of motivation inspiration subscribed today. Money isn't the only thing we talk about around hair. Get life changing it by on your career. My good friend and career expert in Kalman. Oh, my kin Coleman show seventy percent of Americans are going to work every Monday, and they don't want to be there. But for a myriad of reasons, they feel they have to be there that is our crusade. Subscribe to the Ken Coleman show wherever you listen to podcasts. Hey, it's James producer of the Dave Ramsey show. This episode is over but check the episode notes for links to products and services you've heard about during this episode. Thanks for listening.

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Avoid This One Thing If You Want To Retire Earlier

Chris Hogan's Retire Inspired

51:36 min | 2 years ago

Avoid This One Thing If You Want To Retire Earlier

"Coming up on this episode of the Chris HOGAN show, my wife, and I have saved up for years for their college education contests, and we're kind of torn a little bit on whether we should have them have skin in the game and pay back some of that to us or the launch them into adult life debt free. I just don't know which way to go with it. Welcome to the Chris HOGAN show home of everyday millionaires. I am your host Chris HOGAN. And this is your show. This is where your life and your money takes center stage and never forget, it's your life VIP's take charge while excited to be back with you all and excited for you to join me, and I want you to understand few things I want to hear from you. So if you've got a question or you wanna share a win give me a call and leave a voicemail that number to call is eight four four two eight three nine three eight three again. The number to call is eight four four two eight three nine three eight three. And you can also send me an Email and Email addresses ask at Chris HOGAN, three sixty dot com. Well, I'm dumping on the phones. Because that's what I do. I've got Jim in Wisconsin. Jim how can I help you Lauren? Chris. How're you doing today? I am doing fantastic, my friend. How are you doing great? Thanks very much. Appreciate you taking my call. Absolutely. A little bit conflicted with something and would like to get your opinion on it. Okay. My life, and we have three kids. They're pretty much grown up. Then two of them are through college third. One is almost done right now, and my wife, and I have saved up for years for their college education and manage to use that money and cash flow, basically all their expenses for for everything in tests, and right now work or kind of torn a little bit on whether we should have them have skin in the game and pay back some of that debt, so us or launch them into adult life debt free. Yeah. Which is kind of the reason that we, you know, did baby step five in the first place. I just don't know which way to go with it, you know, the life, and I've been talking about this a lot we've kind of had the idea. Well, maybe if we come up with an equal amount for each kid to pay a little bit that might be fair. But they've frankly they've. Had three different paths to their college. Some, you know, little bit of private little bit of outside of college extra education one's going to grad school. You know, it's it's kind of a mismatch of all sorts of stuff. There got you. And so you and your wife have been discussing this. Are you all in agreement about the plan moving forward? Yes. And no, I can argue both sides really strongly. One about the need them have skin in the game that's gonna build character. And all that. But Ren also the fact that you know, we're we're launching them off on a on a good start doing debt free. And you know, as far as our financial situations concern, we're fine. I'm going to be retiring here in about another month. My wife is gonna continue to work for a couple of more years. Probably how much do you all have saved for retirement where in good shape little over two million dollars? Okay. Oh, I'm talking to an everyday millionaire on the phone. All right. Yeah. Right. Yeah. So you guys have have been focused you've done it. So let me ask you Jim is the goal of this to have your kids pay you back or is the goal of this to try to help them understand the life lesson. Yes. Okay. Yeah. I it. It's a little bit of both. Yeah. It's not so much the pay us back because frankly, we, you know, the the funds we've allocated them for years, and and really are not counting on that for retirement. And that's that's that's the heart of what I'm trying to get at and right now, you have three. So your third is in college right now, the other the got one in grad school in a one that has graduated correct? That's correct. Okay. Well, and the only say this now, it would be a little difficult. Right. I mean, if they entered into college understanding that hey, they were going to have to save up and pay toward and contribute. That's one thing. But it feels a little weird to me after the fact to come back to them. And you know, because then all it is is you and your wife now are becoming a creditor instead of the parents. Right. And so I think it's it would be weird now to go back and try to do that. I think that that's something you all we're going to decide you could do it on the front end. But in hearing you because it's not that you need the necessarily, you know, each kid paid you back twenty thousand it doesn't sound you don't need the sixty thousand right? And so now, it's a matter of you helping them to launch. Now, I think you can still educate them and help them. But I think it would be weird to go back. And now submit them Bill for twenty thousand on something they didn't know about going into it. Yeah. We we've talked to him through the years L in their high school years, and that saying that we're gonna you know, basically fund their education with the idea that they're gonna pay back some of it. Oh, okay. And we left it very vague. I got your just probably mistake making it some sort of a formalized type thing. Right. Well, you can imagine. I mean, again, you had the conversation of the dialogue granite? Okay. I get that. But it's not coming out of the blue. But now if there were no pa-. Ramadorai put around it. I just feel like it. Now moving forward with them. I think it would cause a little bit more resentment and bitterness. Now, you could say, hey, here's what I want you to do. And here's the direction I'd like you to go as you're looking to buy a home or whatever and use that money for down payment. You know, getting them to think because it sounds like to me Jim that you're you all's goal was was to educate them. But we can't come back. You know now that you've got one in grad school, one graduated and subminimum Bill, I wouldn't do that. I think it's you know, for parents out there that are considering this to have their kids have skin in the game, which I think it's important to do kids need to be involved. Let's put some parameters on that on the front end. So the young people understand what's going on. Remember, we're talking about young people that don't understand money. They don't know how it works. And so let's guide them. Let's give them that direction. So they can take steps do things the right way and be prepared for life. All right. Listen VIP's. I want to hear from you. If you've got a question, here's what I want you to do what you to call me, and leave me voice mail. The number. To call is eight four four two eight three nine three eight three again. The number to call is eight four four two eight three nine three eight three. And if you don't want to call and leave a voicemail, send me an Email the Email addresses ask at Chris HOGAN, three sixty dot com. And then send it to us. And we get a chance to hear from you. That means I may get an opportunity to talk to you next up. I've got jazz in Nevada jazz. How are you? Doing. I'm doing great yourself. I am focused not finish, my friend. What can I do for you? Hey, so excuse what's do my money? I figure you can help me out. I'm twenty nine from Las Vegas born race right on single bit tree my life. Gotta be kidding later. This year, I plan on getting engaged on you know, that's going to be a whole different story of my life. But I did all the baby steps. Right. You know? I saved a lot of my savings I- vested lot. I also, you know for my work four one K, and I started fiery on the side of wills. Okay. Stocks and also move before we started much fun. My biggest thing is just from doing after doing all being that free and cutting that beginning stage in my life, especially getting marriage later. I'm just kind of on what should I do my money and the next while I was looking at possibly buying a house, but here in Las Vegas, the housing market. So high writing out some kind of us on if I said kinda he'll wait or should I kinda like any other places where money or a second income or somehow or something in this stage of my life issues on what's that he? Limbo stage right now. Yes. All right now. Listen, jazz twenty nine years old, you're debt free. Okay. I mean, you only about anything you keep saying what to do with my money. Do you have money just sitting in a savings account? Yes. I do jazz. How much you have savings account hundred forty thousand one hundred forty thousand dollars. Yes. Your Bank loves you and your banking loves you. And you know, what that money's doing? It's a hammock your money is at the Bank in a hammock if feet up its sip and sweet tea right now jazz. That's not working you're out here busting it. Twenty nine years old you got money. Here's the deal. I feel like you're working hard. Let's get your money out of that hammock your money's just parked in the at the Bank right now, chilling, it's sipping sweet tea and lemonade. It ain't sweating. It. Ain't working you mentioned your dating somebody special. Are you looking to getting gates is it coming up in the next year or two adventure? Okay. Have you talked to her about the ring? She wants. Yeah. We'll talk about a little bit jazz. Don't talk. This is serious business. You need to talk to her about that ring, and I'm serious because that's a hefty investment. All right. So what I mean is is let's really start to develop a game plan and understand what you're going to do with that money. What's the goal of it put money over in that money market account? Let it just park over there that year three to six months of fun. You do your budget? Forgot how much you need to live on also the dollar amount for the ring. But then anything over and above that. I want to get this money working for you. I wanna get this money invested and really start to plug. Now, you mentioned a couple of things you got some big life changes going, buddy. I'm proud of you hear me say this at twenty nine to be debt free and to have that large amount of money sitting there, you are working at man. And so I wanna make sure that you have a game plan moving forward as you get engaged you all are gonna start to now. Integrate would love you to make sure talk with her. Let's figure out where she owned the money thing. Where do you all stance? You all can be aligned. But then you can start to think about homes and think about things later and really start to move in a direction in unity. So I'm very proud of you. But I want you to do me a favor, we get this money to work for you. And people ask me all the time. Chris how do you find a good financial advisor? How'd you find a good investment professional? Answer's simple people. Just go to Chris HOGAN three sixty dot com. There's a dream team button on there. Click on it. Right. Once you click on that button. You're gonna get connected to a Smartvestor pro. You put in some information, you'll be able to look in vet and pick the one that you want, and I want you to interview them, but find somebody that fits you find somebody that helps you feel good and helps you get the answers you need, and you can start to work together. You're looking to bring someone to join your team. And that's what you need to do. So again, go to Chris HOGAN, three six dot com. Find a Smartvestor pro that you can get connected with and you can really start to move forward and feel confident and jazz. I'm proud of you again, I'm serious. I really really am. You are will ahead of the curve your. Doing things the right way. And I want you to keep that up. All right next up. I've got Mike and Kansas City, Mike. How are you? Good morning. Chris. How're you? I am focused not finish, my friend. How are you today? Doing great. How can I help you today? So I'm gonna question on HSA's. I have four kids, and my oldest is getting braces, and his if you have have ever had any kids that braces, you know, that's pretty expensive. It is not cheap. Now. What's the ballpark people? It's forty three hundred bucks. You got you got a better deal than I did. Well, we had we had insurance out a little bit. Okay. All right. So and tell me this real quick, what are the ages of your kids eleven eight six and four. So we're just getting started this. So here's the weekend of Ford it out of our monthly budget. Okay. But I have we have about ten grand in our age essay right now, and you know, part of the benefit of the HSA is to keep that. So it can grow, you know, so I can use it for retirement when necessary for health benefits, but I just wanted to know if you know, I'm baby steps four five and six right now. I just wanted to know if it's wise to use it out of my HSA or out of my monthly budget. So okay. Well, obviously as we talk about health savings accounts. This is something that you have your job and money is pulled from your paycheck each and every month. Just like if you were paying an insurance premium I hear you that the money if left in there, and you don't need it. It can roll over and continue to grow. But I would say this Mike at the ages that you have with your kids the goal of the money that you had set aside for this was four health related items and the braces fall into that category. So here's what I would do if you. All are already saving toward retirement. You're investing fifteen percent of your income. Yeah. Okay. So you already doing that? I like the mindset that you have of hey, I wanna get some long range growth. So what I would say is this why not look at a Roth IRA as an opportunity for you to be able to vest and get long-term growth, and let's let the HSA be the money you've set aside for health related items. Okay. You see what I mean that makes sense? And I with you, brother. I mean walking through it and looking at it, you go man this money sitting here, we could just cash flow it, I just think you're going to get a better overall right after tax kind of gross tax free growth from the Roth IRA as opposed to just looking at the HSA. So use the H essay get the braces, tell the other kids and make sure they're brushing and floss and all that tell them, you know, we're not getting more braces. Right. You just have to have crooked teeth. I mean, that's the problem is, okay. Self esteem. That's what I told my boys. I'm joking people. And then we went and got the boy braces. But yes loved that. Mike. You and your family are focused. You're doing things the right way stay on the path. It's important, and it will also help you. So very much. Thank you again for the call. Now, you all know me, you know, I love to do research, and I love to be able to find information. Right. And I was looking at investing. Let me let me throw a little glasses on here. All right. So here again, I got readers why? Because we can't hesitate to get help. Right. This is the same way with investing. You don't wanna hesitate to get help you want people around you that can guide you and help you and these classes helped me to see. So I gotta do that. So anyway, here's the deal the article was on four one K investing. And it was talking about him men and women invest differently again, it said millennial men are attracted to risk investments like bitcoin, and they'll look to be able to boost their financial knowledge through media. However, their female counterparts are more wary of risk and are inclined to ask family and friends for financial information and advice, the gender differences were covered in a PNC investment study twenty eighteen. About the distinct mindsets between men and women as it really looks to investing how they look back on their childhood or go based on risk management. Now, we all know men tend to have a do it yourself kind of mentality. We want to dig in do stuff and women are more inclusive. More apt to collaborate and to talk, and I think both sides are actually necessary to have a good financial future. Here's what I mean. You gotta have that mentality of not just do it yourself but wanting to get it done right wanting to move forward. But the collaboration is also very important because it allows you to get feedback and guidance from professionals, and so I think both sides are big. But there is a difference in how men and women approach this men have more risk tolerance. And again, I'll say generally speaking because I've met women that have a higher risk tolerance as well. And I've met men that are a little bit more cautious. But all in all this really boils down to we invest in. How? How we kind of think and process the amount of risk that we're willing to take for example, if you look at driving right with the speed limit, for example, DWI drives fast. Okay. I refused. The ride with him. I'm scared. I need a four hundred seat belt when I ride with w I tend to drive the speed limit. All right. I stay within the realm. Right. I don't have high risk d-w has higher risk when he's driving. Right. But here's the deal. We invest how we're wired as well. Again, understanding what investment is and what it will do it's so very very important for us to be able to understand what we're doing as well as the expectation. So all that to say is there's a lot that can go into it. And if you're married it's really important to make sure that you are weaving together to make sure that hey, are we balancing each other out and how we're investing is that leading us toward our goal. So I want us all to do this. Let's have the spirit of warning to get it done. Let's also have the spirit of collaboration where we're willing to reach out and connect with an investment professional to get that guy. Since it breaks down barriers. You have an opportunity to ask questions you've always wondered about. And that's the thing that I love about this show and also just working here at Ramsey solutions. People tell me all the time, Chris, you know, I always wondered about this. They asked me about FICO score. They asked me about buying a home or the dangers of credit cards. And when I talk with them about it, they say, you know, I never knew that. And to me that's a huge compliment because for someone to know something now that they didn't know before that's a big deal. It helps people to feel more confident and the actions that they take and the direction that they're going. So again, love it excited for it. And listen if you've got a question, I want to hear from you, call us, call us and leave us voicemails the number to call eight four four two eight three nine three eight three again that number to call is eight four four eight three nine three eight three or you may prefer to Email. The Email address is ask at Chris HOGAN, three sixty dot com. All right. I'm going back to the phones because that's what I'm supposed to do. I've got Andrea on the line. In Texas, Andrew how can I help? You think you were talking with me today, supposedly you thank you. Well, I kind of have some questions about my mom, and I need your advice and make sure we're kind of on the right track with her, but my dad passed away about three months ago, and so I just stepped in and kinda tried to make sure she set up and she's planned for her future and things like that. And we just wanna make sure if she has their money in the right places, and if she's doing the right things than anything I can consider jest for her to do. Drums, sorry to hear about the loss of your dad. How are you holding up on think you where we're doing? Okay, we're doing okay. This is our new normal. That's kind of what we keep saying. So it's just you know, moving forward and life is different now. But but we're doing okay that's good to hear. I mean, all you can do is take it one day at a time. How long were your mom and dad married twenty eight years ago, so for a long time, and are you plugged in with your mom's financial situation? Yes. Since my dad pass, I've kind of started asking more questions than we sat down and does the booking and more hand. I wasn't. But now now I I have a list. I have I might look Lanner organizers like I have a list of everything just so I I know what's going on with her. I guess go through injury. What do you do for a living? I'm a teacher. Okay. Oh, what k-? Well, you are. You're in your element. You're helping your mom. That's no better way to honor your parents on proud of you for doing that. How much does your mom have put away for retirement as of today? Well, she's still working. She's she's only fifty eight and so she's still has time working and right now, she's putting about a thousand dollars every month in her 4._0._1._K. She already has about I think like two hundred thirty thousand in the four one K has that much. She's putting more in and she has a Roth IRA that has about thirty thirty five thousand in it. And and she has an account of cash just there was some life insurance and other things, you know, so she has one hundred seventy five thousand in cash and just general money markets right now and good. So the total assets that you would say cumulative, she has about how much Andrea even with her house and everything she has probably around seven hundred thousand. Okay. So when I paid off there's no debt nothing like that. Good. All right. Well, I mean, it sounds like your mom and dad, we're definitely working the plan. Yes. I mean houses paid off have no debt almost seven hundred thousand in assets, it she's still working says in good health concerned about I just wanna make sure we're putting the money in the right places. Right things. I if I women live a long time. So I want to be sure that if there's retirement home you have to pay for thirty years from now or anything like that. I guess okay. Great. You have many tools to begin to work with the thing that I would do is pull all that together. It sounds like you've done that. You've got the net total and begin to have a conversation with your mom about what the next three to five years. Look like you said she's in good health. She's still working but begin to help her to have those dreams right now. She's hurting right right now, you're hurting. And so I would say when the time comes where you've got those assets on things there. And she's ready to have those conversations. There's a few people that I would definitely encourage you to connect with. I would definitely encourage you to connect with a Smartvestor pro. That's an investment professional and look at how she's got money allocated in her for a one K. I would get you to talk to at real estate eel P L P stands for endorsed local provider. These professionals we trust as you're talking and. Getting a feel for the estimated value of the home and comps in the area. You gotta do homework now. I know you're sitting there going, okay, Andrew your teacher. You're like all right. Chris. You're telling me information. Now, what do I need to do? Hold on. I'll need easy to go to Chris HOGAN three sixty dot com. There's a dream team button on there. Click on it. And then from there you can connect with a Smartvestor pro to help with investments you can also find a real estate E P to help there. You can find an insurance professional help you with that. And also a tax professional to be able to walk through. So that will give you the guidance that you need to be able to walk through and talk through and get that help. So again, go to Chris HOGAN three sixty dot com. Click on the dream team button. And Andrea it'll get you there by prayers go out to you and your family, but I'm very very proud. That your mom has you in her corner to be able to walk through and guide her in this process. So keep up the good work. You know, one of my favorite personality tests is the disc personality assessment, we use it here at Ramsey solutions in our interview process to make sure we're getting the right people in the right seats on the bus knowing each other's disc profile makes working together easier and more productive. That's why I'm excited to tell you about an easy way to use disk in your hiring process to it's called wise higher. My personal mission statement is to educate encourage and empower as many people as I can. Well, that's what the people at wise higher. Do they help small businesses build great teams by making hiring and recruiting more approachable? Here's how it works. Why are helps you write a quality job at poster at two sixty plus job boards, including indeed and ZipRecruiter. Then automatically scores candidates by their personality fit using the disk assessment the same one we use over three thousand. Small businesses have trusted wise hired to help them. Find great people. Get started today at wise, higher dot com. That's W is e e higher dot com. VIP's if you're listening out there, and you've got a question or you've got a success story. I want to hear from you. Please. Give us a call. Call us. Leave us voicemail. Eight four four two eight three nine three eight three again that's eight four four two eight three nine three eight three. You can also Email me at Ascott Chris HOGAN, three sixty dot com. Again that Email is ask at Chris HOGAN three sixty dot com. All right. I'm going to go back to the phones I've got Roni show on the line running. How are you? They're not saying I like that wrong lady. I like that where you calling in from Cincinnati, Ohio. What can I do for you? Okay. I guess which jobs I will be going to next month. And I wanted to talk to you. Because when I had a job I was investing and my money at work, and I already had my one thousand safe when my and my people when I wait and the chains H, and I had to use my eight four then I'm now currently there in fifty dollars. So my question years when I go back to school, nor de my income is going to be like at thirty. Now, I stop the money investment and go back to be number one. And do my wife dollars emergency four. Do I passed finish my thirty thousand dollars worth of student loans before act back in? Okay. Listen. This is a great question. And I appreciate you calling in and be an honest that you said you had thousand dollars, but she had a situation rise up. You had to use it. Right. If you think back to when you had that situation. I'm not going to ask too much. What it was? But remember the feeling when that situation popped up and you were like, oh my gosh. Life just got real right? And you remember the stress, okay. Okay. Every chance because I had that safety net. That's not catch dress. That's what I was going to you had that life happened and that stress, but then you went, oh, wait a minute. I've got I've got my urgency over here. So I've got this covered. See that feeling that you had then is the old role feeling of Walkin through those baby steps of what it's going to do. So to answer your question. You've got thirty thousand student loan debt. You're going back to school. How many years left are you have of school? Okay. There's a couple of things I want you to do. I would want you to pause the investing. So you can focus on tacking that student loan debt. But again hear me I also want you to apply for some scholarships and grants. See even if you're in school, there is money available to you that you can plug into and still have an opportunity to get some money. That's available. So I want you to go by the financial aid office. I want you to go by the resource office talk them about scholarships and grants. That are available. Get the paperwork and your part time job becomes applying for scholarships and grants. So very important. Now, why do I want you to pause investing? So you can get your emergency on backup because life is going to happen because you all are going to have a car repair or some kind of issue pop up, and we're gonna need money, and listen VIP's, if you don't have money what you end up reaching out to credit card debt. That's where you end up going to the Bank and said out there in the middle lonely chairs to wait to see if they approve you for something known. Now, here's what I approve of. I approve of you have in your own money beat your own Bank. And so get that if you ever use your emergency fund. You wanna make sure you go back and job one is to replenish that ace sap. Okay. If you use it replenish, at means, stop everything. Okay. Stop restaurant. Stop everything until we get that money back because you could hear it in Renisha voice having that money. There was a game changer. It helped her to feel better. Right. She had live pop up. But she was able to relax why? Because she had money there. It wasn't a matter of reaching out to family. It wasn't a matter of trying to figure out. Oh, my what are we going to do? No. She had it and see that's the value of having that net underneath you. All right. I'm going back to the phone. I've got Marie on the line from college station. Marie. How can I help you? Hi, I thank you for all the do and all your wisdom will ver-very much. So my husband iron babysit four five and six and we recently a rental property. It was it was a house that was paid for. So we received all the equity back in it. So we got about one hundred thirty thousand. I think you so our intention is that we use money in about ten years from now to pay for a house in cash, and I'm in the military, and so housing is provided for me. So the next ten years before I retired. So the question is not necessarily what to do with the money, but how to invest it? I know ten years a little bit of awkward timing. It's not short term. But it's not exactly long-term. So would you recommend in a regular, and or do you? I commend breaking it into the four mutual fund five days out into well. First of all, let me think you and your husband both for your service to our country. I'm very proud of you. And I appreciate that. All that. You all do great job on this. How long did you all own the home before you sold? It approximately six years. I lived in it for two years, and it was a rental for four years. Good. Why was asking was obviously because of capital gains. So you owned it when you no longer than? Two years. So that clears you of that issue, but I like that you all have talked and you've got a goal for the money looking to be able to put that aside to help you all pay cash for a home is a great plan. What dollar amount? Do you think you all are looking to spend on a house? I cannot location, but I think safe dollar amount is between four to five hundred thousand. Okay. All right. So you've got a great jump start with one hundred thirty. I definitely look into do something ten years down the road. This is money that I would invest you're absolutely right. It's not a short term thing because that's three years a lesson. We save for those things, but one invest in things that are five years or more. So I definitely would put that money aside. And yes, Marie. I would utilize the four mutual funds that we talk about as an investing option for you to help you grow that money. But also with you all budgeting and being intentional. You wanna make sure you're adding to that dollar amount each and every month. So you have a house Stijepan based on you. You being in the military. Let's start saving for that dream. You see buying a home for cash is a dream. It's also Maria goal that people tell you you can't do. But you know, what I know you can. So I would encourage you guys continue to save intentional remain allergic to debt debt is a threat to your home purchase. Okay. I want you to be aware of this. And so stay very very focused intentional and make sure you and your husband stay connected on what it is you want to accomplish. And Marie again. Thank you for your call. If you've got a question VIP's, I want to hear from you call us. You may have a question or want to share a success story or a win. Call me, and leave me voice mail. The number to call is eight four four two eight three nine three eight three again that number to call is eight four four two eight three nine three eight three. You can also Email me at ask at Chris HOGAN, three sixty dot com. Again, ask at Chris, HOGAN, three six dot com. Is a great way for you to be able to to Email us, and let us know. So I'm going to the phones right now. I've got. Jeff in Atlanta. Jeff, how are you today? I'm doing great, Chris how you doing buddy? I'm focused not finished. I'm excited to talk with you. Because you've got quite a story. My friend you've battled some things over the last few years. Well, they certainly have the law. On certainly have to turn it around. Yes. So tell us what are some of the things that you had to battle. The biggest thing we were really stupid with our income and our money earlier in our life. We had built up credit card debt of hundred thousand dollars personal a hundred business. Also, Jeff you had one hundred thousand dollars in personal credit card debt and one hundred thousand and business. Correct. My goodness. You were charging up everything way too much. Well, what happened what caused you all to get serious about attacking this debt two thousand eight happened. Economy crash or business of Marion Marshall insurance and the veterinary business started going down as economies did. And we had bought a home also July and hadn't sold our previous homes who had double mortgage the economy went down. And we had trouble filling the house. It was a year and a half before we sold that house. My problems. Yes, buddy. I've done the same thing. I bought a home. And it was about a year and a half that I made double payments. I called that education. Didn't you absolutely with capital education on that yet? I know it. Hey, it's crazy. So you're in the middle of is you've got one hundred thousand dollars in personal credit card debt. You've got one hundred thousand dollars in business that you've got two houses what caused you all to get focused on a tack and turn this around. We had always heard Dave Ramsey on the radio and stuff it was harder and harder to pay the bills, and my wife, and I decided that we just going to have to do something. So I tended. Dave Ramsey training over at a local church as close to me. And we went through that. We did our first budget and realize that we were spending two thousand dollars a month more than we were taking in two thousand dollars over budget. That's a big wakeup call. So you went through financial peace university. You all got plugged in. And you didn't stop I want everyone to know. Okay. Because I'm talking to someone that's cheap everyday millionaire status. Jeff in the midst of attacking the credit card debt attack in the mortgage is all this stuff. Tell the VIP's what your net worth is. Right now worth right now over two million over two million dollars. I mean that is a massive turnaround, my friend that is a big deal. You've got to be proud of you, all and thankful. What I asked to the law for nursing his grace and his favor. Yes, listen, I'm proud of you because a lot of people Jeff in a situation like that would have given up. So I'm very very proud as you all are looking at financial peace. Nanteuil pieces. Really? That course that helped you all turn things around. You are also given back you're doing FPU, and your church, aren't you act Chursoo the momentum? Okay. That may Ramsey group did and we had one hundred twenty people that we trained, and it was just a fantastic thing. A lot of people's lines with turned around during that time. Yes. And see that's fantastic. Not only did you achieve financial peace. You also shared at your church VIP's. If you're listening momentum is when you get your entire church to go through financial peace university at the same time, you create massive momentum because everyone's moving forward. Well, Jeff, thank you so much and before I let you go. I'm curious what is your retirement dream? What do you want to do when you get ready to just stop working and start enjoying life? Well, we paid all our debt or lash north agent would be paid for years and and work with the Bethel series. I trained overseas a teach passers. L test one year and the New Testament of next year, we're going all over the world doing that. I wanted to spend more time with that. I want to spend time with my grandchildren. And so my wife, and I want to travel in and do that and just enjoy life and invest in other people zip. I'm proud of you, my friend. Thank you for taking the time to call in VIP's that was an everyday millionaire. And if you didn't hear he didn't start off on an easy path. He had to battle a hundred thousand dollars in credit card debt, a hundred thousand one hundred thousand business debt as well as having to mortgages, but he didn't let that keep him down. He and his wife got focus got plugged into financial peace university. Now, if you've never heard of that that's a nine week course where Dave Rachel, and I teach you how to deal with money. You see the three of us. Dave Rachel have all made mistakes with money. Don't get it wrong. We've made mistakes, but we didn't stop and Jeff in his wife didn't either and very proud of them to be able to walk through the process to be focused and to do the job. Every day millionaires. I love it. That's fantastic. And now next up. I've got this. So Elissa from Denver. How can I help you? Hurry k-. I just had a question about the aright Q and putting our money lifer. Retirement. Okay. So we did all right queue, and we found that we're putting away as much money as it says we need to to get your dreams for good. But that's not fifteen percent of what Dave recommends. We're just wondering if we should put the extra money till we get up to the fifteen percent, or if we should put extra money to paying off our house early. Okay. All right. Great. Great elissa. Tell me this. What are your ages? Both thirty thirty three years old. And right now, how much do you have in retirement in retirement, we have about eighty thousand? Okay, eighty thousand. So you both. Are you all utilizing for one case files TV's B's? Okay. All right. And so how much are you investing? Right now he's month. You all have a percentage or you're just a set dollar amount. Okay. All right. And so you did your queue that's a free tool at my website. And it tells you how much you based on what you have your ages and everything everything's growing. I would say this where you've hit that. And the tool now is letting you know that you're on track or you're there right now with eighty thousand save for retirement at thirty three I would like to see that dollar amount bumped up more for you all to be focused, and saving and investing for another at least seven to twelve years just based on inflation and remember Lysa? Here's the deal. Our money has to grow because we have to outpace inflation. That means the cost of things the cost is going to go up each and every year. So I need to make sure that the dollar amount is growing and moving forward. Also, you all will also wanna tune in and know about that bridge account because it sounds like you guys may be focusing wanna be able to retire little bit early. And so you'll need that kind of bridge account that I talk about we got a chunk of money sitting there to allow you all to live more of your dreams. So I love thirty three years old. You all are focused. I love that. I love that. You're dialed in. And you know, exactly what it is you want and why you want it. But let's get connected with an investment professional, and again people want to know. All right, Q, HOGAN, what is it? And why do you have it? No, the all right queue was designed because people were asking me all the time. How much gonna need for retirement people wanted to know this. And so I would sit down with them and spend fifteen twenty minutes, sometimes forty five minutes running the numbers. So I got with our developers. I said guys I would love you to develop a tool that would allow someone to plug in a few data points, and they know how much they're gonna need for retirement free tool. Go to the website, Chris HOGAN, three sixty dot com. Plug it a few data points. See everybody's wanting to know what is the big number. What do I need? I'm gonna get you there. But I need to start you somewhere. So that is how much you're going to need to live on per month. Have you ever thought about that? Like, if you tack the debt like I'm talking to you about and have a game plan, and you're doing a budget. You know, how much you need start there put that dollar amount in and then how? He years. Do you want to retire gonna work twelve fifteen twenty? What is it put that in then plugging how much you have saved for retirement, the ROI KUA run the number? It'll show you the big number right there smack dab in the middle. That's the big number. What you need to live on that dollar amount per month that you just said, but what I love about the tools that takes a step further. And it shows you how much you need to be investing right now to help you get to that number. So it raises awareness. So what I want you to do if you've not done the right Q? I want you to get to my website, Chris, HOGAN, three six dot com. And do the art q- it's gonna help you have awareness. It's a great thing to share with friends and family to see if they're on track because what better way to live dreams than with your friends you all together plugged in. And everybody's kinda doing stuff and being aware. So that's what I want. I want people living their dreams, but what we have to do to get to live dreams as we have to work a process, I love to research peas, and I ran across an article that was talking about how inflation can ruin your. Retirement. Now, I wanna talk to you about this. Because inflation is one of those words that if you're not aware of it, and you don't know how it works. It can end up trip, and you up what we talk about with inflation is simply this the cost of things or rising. Like, what the way things cost right now is not going to be the case and five years, and you can look at any item you want. You talk about gasoline. We can talk about real estate. We can talk about anything prices are going to increase. Why the cost of them are going to increase and so looking at this. That's why it's so very important that we invest you. See investing allows us to be able to grow our money. You all know, your money's two best friends or compound interest in time. Allowing those two things to work on your money will grow your money. So what you have invested right now on a 4._0._1._K and a four three be eight can't just sit there and do nothing, for example as gentlemen that. I was coaching years ago. He had around two hundred. Thousand dollars in cash buried in his yard. Okay. I'm not joking. This is like old school pirate days. He actually had it buried in his yard. And so I'm talking to him. And I'm thinking, okay. Yeah. Right now, you have two hundred thousand dollars there. But if you allow that to sit there for five to ten years, I told him you're actually losing money, you're losing money that two hundred thousand dollars what actually be more like one hundred seventy five thousand dollars because it's losing value. See is not growing money. You see one hundred dollars today won't be worth one hundred dollars five years from now, we know this, right? That's because of inflation. So all this to say, we've got to make sure that we're investing our money to be able to grow it the money in our 4._0._1._K's the money in our four three Bs even our Roth IRA's all of that needs to grow. We've got to have it invested the right way because the cost of living is going to rise and the cost of goods and all this other stuff is going to increase. So. So to be able to outpace inflation, we need to make sure that we're investing in a way that allows us to have growth and flation can hover between two and three and a half percent each year. And again it can vary. But think about that if that's the case, let's just say inflation is three percent. We've got to make sure that our money is growing beyond three percent to be able to outpace inflation. So looking at this. If you've never talked about that word, we all know things cost more as we get older, and as time goes by, but we need to make sure that we're looking at our investments and understanding our investments need to be growing outpace inflation, so VIP's as you go in and you sit down with your Smartvestor pro or you sit down and you're walking through with your investment professional you want to ask about that. Ask about inflation ask about the way that you're invested. And again before I take another call wanna hear from you. I want to hear from me. I want you to call us. If you have a question or a comment or a success story that you've. Love to share the number to call is eight four four two eight three nine three eight three again that's eight four four two eight three nine three eight three or you can send us any mail at ask at Chris HOGAN, three sixty dot com. All right. I'm going back to the phones. I've got Julie in Montana. Julie how are you? Thank you very much. How can I help you today? About property that you might husband have if the second property is cabin up in the mountains. Okay. We bought the land about ten years ago and have been putting power water, those kinds of things on it. And then years ago, we took out Moorhead you build your cabin on movie, but we still have about two hundred and fifty thousand on a mortgage, he views it as more of an investment, our family things that you know, we can go up without kids and stuff like that. I think it's more of a money at this point. I've been looking for advice on we sell it. You know, one of the option is possibly renting it because it is in the mountains on fairly close to Yellowstone park. You know, tourist hunting and stuff like that. So I think we could probably supplement our mortgage payment was some rental or tell me this how how big of a cabin to build. It's about twenty eight hundred square feet. Right. The start of cabinets a house. Yeah. It is kind of a house cabinet under thousand square feet or something. I thought you had a lean to you guys. Got a house out there. Beautiful. Okay. We have not canton expensive off. All right. Tell me this. All right. Julie. How many times does the family go out there in a year on average? Probably ten really. Okay. So about ten times almost once a month. Okay. All right. And when you guys go how long do you stay? Weekend or just in a couple of nights. Okay. Now. Listen, I'm gonna put all the other VIP's on hold is just me, and you I'm just playing they can still here's, but Tim how do you feel about this cabin? I think a lot of money. Yeah. And every time I love it. It's about two and a half hours from what we read. So it's not that far, but we have four kids one of the sophomore in high school. We still have a home mortgage, and I just feel like it's a debt and a payment that we shouldn't be putting ourselves in or and how much is the payment on the mountain house sixteen hundred. And you still on your primary home, correct crap. How much do you own that home? Fifty. So I'm thinking about twenty five hundred all that. All right. And you said you have four kids you got one that's off more, and how old are the other three have. Okay. So fifteen thirteen nine and fix your busy. You got a lot of life going on. Yeah. SU this. Let's say hypothetically, your husband agreed to sell this property. What would you do with that money any money that we made on the mortgage pay off for a one cave on that we could out for coincidentally down payment on a house? And they the monthly payment. I would just use to probably toward equal that that we have after July like slip that in about those 4._0._1._K loans. See you try to bring that in later on. And you thought I was just going over that. Okay. Don't touch the 4._0._1._K's. But that was that was I know I know I know, but here's why I'm asking I think you and your husband you guys sitting down and really start to have a dream meeting again. And what I mean is I want you guys to get on the same page about the direction you're going right now this mountain house, aka what you call a cabin is becoming a thing as you called it a money pit, especially if you're constantly looking to update it and do things I get your husband's mindset that he's wanting to have a place for the family for you all to be able to go. But one of the things we gotta remember Julius that home is where we all. Are it doesn't matter the location, and so you and him getting together and really talking about this. You mentioned an idea that I like you could potentially rent this thing out, and let's get some revenue coming in. But again, that's an idea for you guys to talk about together to get an alignment on. And so I think you have some options. I mean, I'm one of those people that I'm always looking to how can I fast forward? Right. You all know me. I want to chase down progress and grab it with both hands. But I. I want you guys to get aligned for the sake of the kids as well as your own financial future. So have conversation with it. Now. Again, if you I'm sure you guys have had this conversation and your husband is in the camp of he loves it. He wants to keep it. And if you're in the camp of I don't necessarily love it. I enjoy it. But I'm okay selling it. Now, what I want you to do is both of you surrender your positions and come together. I want you to speak French, right? Like right now, you're saying me, and he's saying I I want you to speak French say, we we right? That's the family filter when you walk through that together you start to look at things a little bit different. And again brainstorm options, we're not trying to draw conclusions. But we do want to work together. And to be able to focus Julie. Thank you so much for calling in as great to talk with you. And I wish you and your husband, well, as you all sit down, and you start to talk about this for those of you that are out there. You may not know that we've got a community of people that are plugged in. And they are fired up. And so if you want to join a community of other future millionaires, I want you to head over to. My Facebook page who over to Facebook dot com slash Chris HOGAN, three sixty and click on the group section and join Hogan's everyday millionaires. It's a fantastic group. They're in their fired up Charon each other on and really kind of guiding coaching each other. I love to get in there and stir up the pot every once in a while. But I just love their focus. But what I wanted to do is give them obviously a shout out. And I wanna take a question from the group. Here's the question. Derek asks if you have a 4._0._1._K, do you need an advisor to help you pick your mutual funds? Okay. Derek? It's a great question need, right. I don't know. I mean, I can pick some stuff. But here's the thing. Do I wanna pick stuff or do? I want to invest in the right stuff. So I would say you should want a professional in your life to be able to guide you, you know, if I've got a two issue I can identify where the two is that's bothering me. But I really don't need to be pulling Mon teeth. Right. I mean, I know back in the western days. People were bad. They were tough. Okay. They handle things back then because there. Really Dennis around. But now we got professionals, and I feel the same thing about your financial future. I don't wanna leave it to chance there. I don't want it to be this fifty fifty then I get it. Right. Did. I miss something. More importantly did. I miss out on an opportunity. And so I think connecting with an investment professional to look at and review the things that you would have picked and really talk about it because I want to deal with somebody. That's in it all day long. I won't people that are professionals auto won't dabbler 's right dabbler can be dangerous. I want people that are focused and that are connected, and they know what they're talking about. So Derek get connected with the Smartvestor pro. Go to Chris HOGAN, three six dot com. Click on the dream team button up. They're finding investment professional near you talk about what you were going to invest in. And then you have an opportunity to have an informed conversation. Wow. Listen, I want to thank all the callers. Fantastic. Every single one of you. I wanna thank that everyday millionaire Facebook group, I wanna thank my phone screener. Amanda wanna thank Bobby. My audio tech and also d-w the producer. And so listen to me until next time. Don't make excuses make progress. Before I let you go. Here's a highlight. From our episode next week. Feel like we're totally stuck on babies that four, and we we're not making any progress, and how much do you all have saved for retirement right now, six seventy five six hundred seventy five thousand. Okay. Why did you say that like that are you hesitant because I'm worried that you're going to say that's enough. But I don't think it's enough. Listen here. You don't know what I'm going to tell you. If you enjoyed this program, we at Ramsey solutions have other podcasts you may enjoy as well like the Rachel Cruze show guys. It's Rachel Cruz. A lot of people are living paycheck to paycheck. They're n debt. They don't even know where to begin. And is that you you have come to the right spot. So h episode during get practical tips on things like saving up money for an emergency fund things like getting out of debt. Also, some tips on how to plan for your family's future. And what to do unexpected things happen and how to deal with them wisely. When it comes to your money, you can expect in depth interviews and some exclusive commentary from me that you can only get here on the Rachel Cruze show podcast to hear full episodes. Just search Rachel Cruze dooms or go to Rachel Cruze dot com.

Chris HOGAN VIP investment professional Jim Jeff Bill Dave Ramsey Mike Marie Andrea Ramsey solutions 4._0._1._K Wisconsin Andrew Smartvestor
Teamwork is the Secret of Success in Money & Marriage (Hour 1)

The Dave Ramsey Show

40:21 min | 2 years ago

Teamwork is the Secret of Success in Money & Marriage (Hour 1)

"From the headquarters of Ramsey solutions. It's the Dave Ramsey show. Were dad is dumb cash is king and the paid off. Which has taken the place of the BMW as the status of choice. I'm Dave Ramsey. Your host. Thank you for joining us. We're glad you're open phones. Triple eight eight to five five two two five. That's triple eight eight to five five to two five. Josh starts off this hour and Myrtle Beach, South Carolina. Josh, how are you? Hey, dave. Thanks for taking my call. Sure. What's up? We're my wife, and I was just curious. We're investing in the right areas of what we need to be doing. We are thanks to your debt free and Glenn their home. When ago, I it's been fantastic. But currently we use an L P. We both fun awhile. And we're funding of five twenty nine for three year old the rest of our investments were putting in our 4._0._1._K's at work. My question is a why question is should we back that amount down to just the batch coercion that our companies offer and do the remainder of investing with yelp. E my concern is everything we're putting in won't be available until retirement, right? Didn't know sort of which way you would recommend going at you. So what's your household income to sixty last year white ago well done and well with that? I mean, you're limited are you're both working with 4._0._1._K companies, right? That's right. So that's thirty six thousand eighteen each right? And then a couple of Roth sieges another eleven so we're only at forty seven thousand two hundred and fifty thousand. So you can max out everything and still do some investing. You don't have a house payment. I don't know why you'd have to back down on your 4._0._1._K to be able to throw another twenty thirty grand and mutual funds. You know? Well, I I guess the question was I'm in we're discussing the night, and my life seem to think that she remembered from the class that the recommendation was just do whatever the match was with the four one K, and then put more over with our E P because there's more diversity, and he can do more things with it. Now that that would be to do a Roth. If you're not doing a Roth. I do the match with 4._0._1._K, then I would do the Roth. And then if there was more leftover I to get to fifteen percent. I would go back to the 4._0._1._K. There was never a recommendation the class to go on now at baby step seven. When you've maxed out everything then. Yes, I would go over to your LP to your Smartvestor pro and do that. So you said you make to sixty so fifteen percent of that is thirty nine thousand thirty six. Okay. So you are up. Over fifteen percent. If you're maxed out everything because you got thirty six and then eleven so you're you're at forty seven then we do another six thousand five twenty nine for for our three year old. Yeah. Yeah. That's kind of outside this equation, though. I'm I'm looking at the fifteen percent of your income going into retirement step four, but really baby step seven. What we say to do as max out all of your all of your retirement options, keeping the government's hands off of as much as possible. And then to your concern of I may want some money prior to fifty nine and a half. I would just do a dishes investing. But you don't paint you should have disposable income with your fabulous income. Congratulations. You guys are killing it, man. Well, done very well much. So I yeah, I I would not back down on the 4._0._1._K. But I would look to start doing some additional investing in non retirement. So I could get to it later. Okay. How old are you? Forty. Okay. So you got nineteen years before you can access this, and you might want access some of it in ten years. So yeah, yeah. I'm probably going to look for another another twenty grand or so year and start throwing that into some mutual funds over at the Smartvestor pro. And then go from there, and I think you've got the room to do that you should have. I mean, again, mainly because you just have this outlandishly wonderful income that you've obviously owned obviously earned. I mean, so very well done Aaron is with us in Atlanta, Georgia. Hi, erin. How are you over there? How are you better than I deserve? What's up? Question. Oh, fifteen fifteen thousand on Honda Accord is actually my first payment due today. And I was wondering your opinion on how I should go about paying it off. I have about sixty thousand saving and I make a hundred thousand a year and didn't you thanks for the car. Because of currently get paid under the table. And I wanted to to just, you know, try to make some payments and just pay it off within like a year. I work construction. We've my family. Yeah. But what does that mean you need a car loan? I mean, that's just how win about it. I didn't really think that just pay outright. Okay. She'll just go right back. You got sixty thousand sixty thousand dollars cash in the Bank, right? Yeah. Just go round to check and pay it off. Okay. Also drive like about thirty thousand miles like thirty six thousand miles a year. And I got the extended warranty friends because I drive so much. I would cancel that. And get your money back. Okay. All right. Let me let me walk. You. Why want through y I would cancel that. Okay. Extended warranties all the data that we have in the research this done on them says that eighty six percent to eight percent of the cost of the extended warranty. Almost all of it goes to marketing and profit, the actual coverage that it's giving you their cost to cover the car for the extent they're covering. It is twelve to fourteen percent of what you paid. Meaning that if you take that money and put it in the Bank, and you self insure through the car breaking down you pay out of your pocket for whatever you need. You're gonna come out ahead on average. If you don't that morning tea companies going to go. Broke. See if you don't come out ahead on average. Now, you might have the exception where your things up, but you got the money to buy another car if that one just falls over. So you know, you self insure through that stuff don't give them all that profit. That's why I'm telling you to do it. So yeah, I would cancel that. And get your money back, and I would write a check and pay off the car today. No, you're debt free. Wow. That was easy. Hey, thanks for joining us. Open phones at triple eight eight to five five two two five. How many of you know, somebody who needs some of this information with money, maybe they're struggling or maybe they got the potential to make a lot more. Well, built a lot more wealth than they have seventy eight percent of Americans live paycheck to paycheck, not all of them. Look like it some look good. But they're broke right, Texas, people call that Big Hat. No cattle folks are in crisis. But they don't have to be you can help them. And we need your help. We need you to lead a financial peace university class in your area. It's our non week class. That's helped almost five million people, and we call those folks that lead the class coordinators, and we need you to be a coordinator, our coordinators are not officially trained coaches or not financial experts. They're people that are regular people that just have a heart for people with chairs circle, turn on DVD and love people. That's all you gotta do your interested leading clash check us out. We want to hear from me if you're on board ready to say, yes. To leading one of these classes check us out to sign up to daveramsey dot com or call us at triple eight twenty two peace triple eight two two seven three two two three. This is the Dave Ramsey show. Christians have an affordable incredible way to meet their overwhelming healthcare costs. It's Christian healthcare ministries, the original health cost sharing ministry. A Better Business Bureau accredited organization C H members share to pay each other's medical bills. It's not insurance. It's Christians financially and spiritually supporting each other. It's what Tim has done for over thirty five years. Learn more at C H ministries dot org. That's the H ministries dot org. Christian healthcare ministries is a proud sponsor of Dave Ramsey live events. Thank you for joining us, America. Gabriel is in reading Pennsylvania. I gave her a welcome to the Dave Ramsey show. Davis. Gabriel gave a pleasure talking to you. Today. You too, sir. What's up? I'm twenty nine years old. I've been working for a company mouth for five years of straight out of college landed a job of this company to ship and kinda. On what the company up until this point. I'm expecting them my fourth hopefully, final child, and I am a bit stuck as to what I should be doing as far as my career, though, the company is growing the income in my n has not been growing as rapidly thought it should. I mean, the past years, I probably grown ten thousand dollars. What do you make forty five now? Okay. And what do you do? I'm not on Sultan, an IT consultant, correct. Making forty five thousand. Yeah. What's your degree in? It's it's basically I took to your course. And technology got settle several certifications. So are your how many classes and? Things have you done to increase your skills during the last four years in Atif field initially not much because when I started at this particular job the owner if. Not is four years old. You're useless. It. Certificates are. About your knowledge certifications or certifications. But if you're not continually growing and learning what you learn for years ago. You know, this is of no value, right? No. I I'm constantly learning. Coasting working on new systems that up today that s is knowledge. Fixations? I was asking are you are you staying in the growth curve because if your knowledge curve is not staying up in your world. And it's a steep knowledge curve. You're like doc, you got to be reading and studying all the time to stay ahead of it. Otherwise, you're dealing with four year old information, which you, and I both know is useless. Okay. Cool. All right, good. So why are you that just seems to verily underpaid? Yeah. And the reason why call it actually I've been I've been trying to make a decision on this for quite some time. I feel kinda like feel it feels. Rude to meet the try to leave the company for everything fielder has done. I feel like I would be disrespecting him. What your disrespecting him? If you're if you can make ninety thousand somewhere else and he's paying forty five. You're not disrespecting him. I got seven or people here. I would expect somebody to leave. If I was paying him a market. I don't know if you're worth ninety or not. But, but you know, if you're disrespecting him if you leave for thousand bucks. You know, but, you know, no, raise at all. And or you know, unless there's some kind of a promise of way up ladder real fast. So I think what you need to go shopping and see what you're worth if you get some offers. And that is not. That's not disregard. Okay. What did they did? You get some offers. I have in two years ago. I I've had enough and I went out and plied, and and I was making thirty seven then and I got enough for fifty six, and I post he was shocked the next day we spoke by again, and he got my level down so much why they just decided that it probably made more sense to stay. Why why did you stay at thirty? He got up to forty five. Right. Yeah. But you ain't fifty thousand dollars more. Yes summers. I don't understand. Why you stayed? I guess I wasn't being on enough. I felt that loyalty is a two-way street, dude. I mean, you're you have a responsibility to your family to earn. What you can earn in the marketplace. Again, if there's a tiny bit of money involved percentage wise than loyalty comes into play. And but I I again, I I would have no expectation as an owner here that someone stay here and make. Guy working for me one hundred years ago. I mean, he was making thirty two thousand dollars a year. And he learned back in those days. He learned coal fusion as way back in the day. Now, we don't even use that we use ruby on rails for everything and other languages and more advanced and co fusion, but but but you know, he got a guy offered him ninety K and he had to low kids, and I'm like, dude, I can't pay United. K I'm gonna help you pack your desk, you ought to take that because I love you, man. I want you to win. And I can't I can't come close to that. He lied to do that for you to me too. But you need to come here. Let's get a box and pack your desk, you're gonna take that ninety thousand dollar job, dude. I mean, come on seriously. So yeah, you need to you need to get a different job. Your loyalty has become loyalty is a wonderful trait. I suffer from the same thing. My hillbilly DNA makes me very very loyal to people. And but and I have been many times in my life to the point of toxicity that I get it used against me. And it becomes toxic type of loyalty and. You can't. You don't stay in a relationship that is not working and this was not working. Financially. You gotta go. You gotta go, man. You gotta go make some money are Jennifer's in Detroit. Michigan. Hi, jennifer. How are you? Dave. I'm good. How are you better than I deserve? What's up? I have a question. I have been listening to you not too long, but all day long. So I have multiple sclerosis, and I just got approved for those security disability. I have a son so he will get benefits as well. And I'm on like baby step two, I have little over six thousand in debt. So I'm so excited to like really like throw these huge snowballs at my dad. With that. And I used to work at a credit union when I was in college. So my son has five twenty nine who at this point. He doesn't plan going to college who wants to do skill trait. I have both Ross and tried to traditional IRA. Because I've had a mess for so long. I don't know that I'll live to retirement age. Should I keep that money liquid for him in case of I pass or how old are you? I am thirty five. And you're the only income in the household. Yes. And the single. Okay. Your first goal is let's walk on through the baby steps even in your unique challenging situation still going to get you out of debt still an emergency fund, and I'm gonna stop adding to any kind of long term investing until you've done those two things you're -mergency fund and your six thousand dollar debts gone because that's gonna put you in a lot better place with the peace in your finance PAC piece. Like, and I've got several friends that are battling with MS. And the one thing they all tell me is that as stresses increased their symptoms increase. Right, right. I love calmed me. Give me hope. Me hope sick. There's it'll be okay. Because you see there's a plan and the there's something even better than a plan. And that's the plan executed because if you were sitting there with ten thousand dollars in your rainy day fund and zero debt, you would have even more peace agreed correct which helps extend your life, literally. Extend your life, literally for real let's do that. That's a big deal and stop all investing temporarily until you do that. Then we come back to your second question. Once you've done that when you get to baby step forward to you add money into retirement with a life expectancy issue, or do you just build up some some money in your emergency fund our in your separate investing? I probably would do some separate investing. I'd love for you like a hundred thousand dollars in a mutual fund that you've invested in grown that is not in a retirement account. Okay. And I have found an adviser who has the heart of a teacher. So I'm excited. Good with him. So. Anytime you need some help you call me back. I'll walk with you. But I think we get that financial peace in your life. And I think that'll help a lot. So stop investing temporarily and walk your way right up into that baby step four when you get there and probably not using retirement accounts at this stage. I'm probably just gonna throw it in a mutual fund. So that you've got access to it. And it's liquid for you or your son's depending on who needs because thirty five you probably gonna ask them cash needs before fifty nine and a half. Folks, I don't do cheap that. I do. Love a good deal on a great quality product like tuft and needle these guys offer amazing mattresses for every budget. And now they have a brand new mattress called meant. They literally took their best mattress. And they made it better. They've maxed out the amount of cooling jail and graphite to keep the air circulating and your sleep from becoming a hot mess unique to check out tuft and needle try it for a hundred nights risk free at t in dot com. Ramsey solutions. Sean and Alier whether's guys. How are you? Good. Dave. How you doing better than I deserve. Where y'all from say. Hi, welcome to mash Ville. So what about a five hour drive seven with a newborn? On a percentage of that love it. So here to do a debt free scream how much of you paid off. I paid off about sixty thousand dollars very cool. How long did that take twenty months? Good and your range of income during that time about sixty thousand towards the end kind of two eighty five right now. Okay. Cool. What do y'all do for a living? We're both nurses. Very good. Very good. What kind of debt was a sixty thousand nursing school just a little bit. My wife is a little bit more reserved on her Stu loons, and it was a little bit of a little bit some Car Loans. What else do we have some medical bills? We took out a loan on our house to make home improvement. So we could sell it. So so how long have you guys been married over five years come on six what happened twenty months ago said game on I'm getting out of debt told me your story? Well, we set down we got I gotta told us about a financial advisor we sat down with him kind of whatever some numbers, and he came back at us and said, you know, how how much do you guys live on, you know? So we thought about it. And we're living way of our means and kind of realized it right there, and I had heard I had heard of your book before and you know. Just picked it up again and started and not only that is held a health scare and that really bothered me a lot because I needed to make sure that everything if something did happen to me. My family was fine without me. Yeah. Grab your attention, especially when you're nurse. And you know, what's going on? Curse really gives you extra inside that you didn't necessarily want. Wow. Well, congratulations, very well done. So you come home after the wakeup call, and you go we gotta get on something here. And then what happened? Well is the hardest part was getting hurt to read the book. I mean, she was she'd always say, it's do you do what you need to do in. I'll be along with the right? I'm like that's not what I need you to be on board with me. I need you to be on the same the same plan because when you both on the same make the same decisions. So that's really it. You know, just sit down worked on a budget and really cut a lot of stuff out of our life. So so highly what made you decide to say? Okay. I'm not gonna just handed over to him. I'm actually going to be part of the decision making. I'm gonna plug in. What made you decide to do that? Finally convinced me to read it and watching the debt free screams and seeing what everybody could do it was really game changer for me and having our girls, and knowing that we wanted the better future for them. So the total money makeover book the YouTube debt-free screams that gets you on the same page. Get you on a budget. Get you started in twenty months later here we go. Very well done and babies in the process got babies everywhere babies, we have Nora who's four Josie who's two and Bennett who is three weeks old. Oh, wow. Yeah. Baby. Baby. Day. Very well done you guys very well done. So what do you tell people the secret to paying off sixty thousand dollars the dead in twenty months making sixty eighty five and having babies probably teamwork you had to be both have to be on the same page and the biggest thing because if not then obviously it's more difficult to work in the same direction. Learning be to be content with what we have not seeing what everyone else has but being content with what we have turning off the Facebook. Everybody else's highlight reel is Rachel says. Very well done you guys very well done. We've got a copy of Chris Hogan's retire inspired book for you. We want that to be the next chapter in your story that you guys become millionaires and outrageously generous as you go along. So did you have more cheerleaders or more people thinking you were insane? Doing the stuff if you cheerleaders. Yeah. A lot of people didn't completely understand. What exactly was going on? A lot of people don't wanna make sacrifices. Yeah. That's the tough part about it. But you know, we had a bigger wine a bigger goal. And you know, that's why very cool. Very cool. Good. Are we going to leave baby out? Now. We'll get him get him in there. I didn't want because we gotta have picture moment. You come all the way from Cincinnati newborn, right? Three weeks old. Oh my goodness. Way to go Bennett. You just made the cut, but it's a very good. All right. Sixty thousand dollars paid off in twenty months making sixty eighty five it's Sean and Haley, Nora Josie and Bennett from Cincinnati count it down. Let's hear a debt free scream kinda down three two one. Ago you guys. Wow. Got a handful with a young family. Last thing you need is a bunch of debt hanging around. Well done you guys very well done. It's good stuff. Open phones at triple eight eight to five five two two five. Thanks for. Joining us. Alison is in Syracuse, New York. Hey, alison. How are you? Better than I deserve. What's up? I'm hey. So it's kinda strange circumstance that just sorta happened yesterday. I found out that the company that I worked for was just bought by a larger corporation part of the agreement was that everyone would still have their fame or quivalent jobs at the same rate, potentially more. So at building worry me too much. But what did is I'm seven months pregnant, and since I'm essentially going to be a new employee for a new company, I've lost my maternity benefit and everything I've read that I sort of lost a lot of job protection as well. When I do need to go on me. So my husband, and I we've been stockpiling cash because we're eager start bay step to once. I'm home the babies home, and everybody's good. But now, I'm wondering that given the circumstances. Do we need to go to baby step three and then back to eighty two? No, no. You'll just decide whether you're going to start your baby steps at all. Whether you start your total money makeover at all. So it sounds more. Like this. You know, you pile up cash like you've been doing, and if you and baby come home and everybody's fine. Then let's keep piling up cash until you get back to work and can assess what's going on at the job when you're back on the job. And then you can tell that it's going to be okay. And you're gonna get to keep a job then we'll go back to baby we'll push play again. Instead of when you come home from the hospital in this case, we gotta go back and make sure the job secure it. Right. So first thing we're saving fours pregnancy. Second thing. We're saving for his job loss and both are on top of you. Right. So we're just gonna blow up we're just gonna pile up cash for both. But once the storm clouds clear, meaning that you and baby your home. That's storm cloud won. The storm cloud to as you go back to work and everything's fine. You got a better job and make more money. Life is good. Then you haven't skipped to baby step three. You just have this Pollock cash. And for the first time ever you push play on your debt snowball. Which means we're gonna throw all that cash. At your debt. At that point. That'll be the does that make sense. Yeah. Makes sense. It's kinda the same thing you were saying, but it's just not a baby step thing. Right. That's the difference. Now, you are aware that that, you know, under your rights to hold a position on the family leave act that they have to keep the same position at least or an equivalent position available for you upon return. Yeah. They're not allowed to just go out you're pregnant, we don't like you anymore. That's against the law. Okay. We've had ladies leave here and go out on pregnancy. When they came back. They got a similar job, but a different job at the same pay. And that's completely legal. And, but you know, you don't wanna have the this other thing going on where you know, they go. Well, you know, we can't really hold your job for you. Yeah. You can't fact it's federal law. You better I wanna threaten your employer. I wouldn't do that. If I were you. But I want you to know that that's you need to look the family leave act understand what your rights are under that. It's there for a reason. Thanks for being with us, America. We're glad you are here. Chris in Atlanta, Georgia. I Chris how are you? Good. Thank you. Are you doing better than I deserve? What's up there? Ready? We're under contract. The first the new home in a better school district as my oldest daughter. Get ready to start kindergarten in a year. We have we have an excess at twenty five thousand dollars over or takes months emergency fund, and we're debt free. We're wondering if we should put that down for on the mortgage or what we should do that twenty thousand dollars. So you have your emergency fund, you're debt free except the house which puts baby step three, correct? Right. Okay. So you're putting fifteen percent of your income into retirement. That's maybe step four. Baby step five is safe for kids college have you done towards kids college, not not as we've been saving this try to get better school districts. Have you haven't started when years old three years old? So we haven't started that. But yeah, we're not in. What's your household income seventy thousand? Okay. And you're putting the house on a fifteen year fixed. No, sir. Okay. Why? Well, I'm getting ready to go. I'm sorry, full-time got real estate license and part time this year successful. I'm planning on February next year knowing full time. So I'm gonna be independently employed, which is variable. Which means you, Mike more. Yes. That's that's the game plan. Doesn't necessarily mean you're gonna make less. I would put the house on a fifteen year, and I would use the additional twenty five thousand extra down payment to make that a little easier to swallow. Okay. And then I would just take your household income and begin to work your baby steps, and as you said, we're gonna start saving for kids college. We're going to be saving fifteen percent of our income any excess money we get above those two things. Baby. Step six we throw at the house and start getting the house paid office quickly as possible. What are you paying for the house? Well, we actually got a really good deal house is three hundred and twenty five thousand we actually bought a having twelve so we're gonna net hundred thousand per office from there just to say, Connie, increasing the home value under contract right now too. So you're paying three twenty five and you're selling years clearing one hundred on yours to put down. And you got twenty five more that we're talking about you're gonna put down. Okay. That's where you didn't feel infield the emergency for six months still have that. Yeah. Yes. After even if we put the twenty five downright. That's that's where I didn't know since I was it was a no or to put it down. But since I was going to be independently employed. In the beginning. I know until you got a six month emergency fund, and you're not you're not gonna start real estate full-time until you've got something in the hopper. Right. Exactly. Not till. I know that I said it's gonna work for me. I'm I'm the I'm active active life and right now for just a couple of weeks ago. Yeah, you get you get you get some listings and some sales in the pipeline. And you'll know you're going to be able to eat, you know, this is all gonna work out. Then you're going to be safe. And but six months is plenty you should be should be full. This often you're doing this in a very wise methodical way, you your systems person. I can tell about talking to you. And that's a good thing. It means you're you're not being impulsive with this. Yeah. I I would put the other twenty five down which again makes it easier for you to go ahead and take that leap and do that fifteen year fixed, which is the only way I would do it would never buy a house on more the fifteen years, I wouldn't buy house less you pay cash for 'cause I don't borrow money. But I would never even recommend that you buy anything unless it's a fifteen year or less fixed rate. Thanks for calling in our question of the day comes from blinds dot com. You can upgrade your home today with blinds dot com. The number one retailer of custom window coverings with blinds dot com. You get free samples free shipping. And with the new promos. They run every month you're going to save even more always put in the promo code Ramsey. And you'll see the best possible deal out there. That's the magic word Ramsey at blinds dot com, but in Ramsey that's the promo code blondes dot com slash Ramsey. There you go the next questions. Daniel and Pennsylvania. Should I be saving money monthly for new car while I'm paying off debt? No, both our cars of well over one hundred thousand miles on them. So and we don't wanna get caught on unprepared for repair costs more than the car's value. You will you could it might. But get out of that. I get your -mergency fund in place and then start saving for your car. Get out of debt. I get your -mergency fund in place, and then start saving for your car hundred thousand miles is not that big a deal on most cars, most of them that you very seriously doubt, unless you're just driving some crappy low car, but. One hundred thousand mile car is not a two thousand dollar car in most cases. I mean, if it's destroyed a bunch of other ways than it could be, but the vast majority of them got a lot of life left in them at that point. So let's not be overly dramatic about cars and put him out of order. Hear cars are fine. I'm not against cars, you pay cash for them above your -mergency fund, and when you're debt free, and they should be less than half your annual income when you're doing this Maria is with us in Sacramento. Hi maria. How are you? Hi, Dave doing. Well. Thank you so much for taking my call. Sure. What's up? Okay. Well, I'm in baby step two, and because of my Asian fifty five I wanted to know if I should start paying into my 4._0._1._K my life insurance, and my long term care, and if I should draw the little bit of four thousand dollars for my TV merit trait. The pay down my debt. Yes. Yes. And no. So let's walk through it. Okay. You don't need long term care insurance until you're sixty the probability of using long term care insurance under sixty is less than one percent. And so I don't recommend long term care insurance until you're sixty so stop that. I would temporarily stop retirement investing as well. So that you can focus on baby step two. I would not drop your life insurance. If you need life insurance, are you single? I am single. Okay. Do you have children? They're grown children. Why do you need life insurance? Well, I'm studying to allies by listening to your show that I probably don't need it. I was just wanting to leave some for my grandchildren and my children. Insurance is not a method of building in a state. It's not it's not economical do that. So now, let's drop them into do you? I mean, do you have any how much money do you have in your retirement account? Much one hundred forty five who'd for you. All right. That's a good number there like that one. All right. So let's just say worst case scenario you die. Okay. Kids can bury you, and they'll still have plenty left out of two hundred and fifty grand. Oh, I didn't think about that. So you don't need any insurance. Oh my goodness. I never even thought about that. Thank you so much. Oh, jeez. So we're we're in good shape player, so drop the insurance a long term care insurance will temporarily stop retirement how much debt do you have not counting your home by step too? Okay. So I have thirty three thousand dollars in credit card debt. And that's I want us to make a measurable goal. So my goal was to pay thirty thousand off by in eighteen months 'cause you said fifty three and whenever they ostrich. So I'm hoping that paid off. But then I have a car payment the balance, I check this morning is sixteen thousand and the cars only were thirteen so, and I love my car, and it's very dependable. This is my house all together. I think it's well my year my annual is eighty four almost eighty five thousand you ought to be able to go faster than you've got outline then. Okay. I just need to know how to do that. 'cause I'm doing on paper. I did that every dollar. I'm registered from my FT. And I'm doing the math. And you know, I'm ready. I'm doing this day. Screamers here. Here's what you're going to find one of two things going on either. You've used every dollar every dollars. Got all these blanks to remind you to not forget to put money down for your Trich Bill right to not put forget about money now. But you can't put money in every one of those blanks. Nobody has that much money. But god. Okay. And so you, you know, there's if you're trying to fill out every line of every dollar you're not going to. It's just there to remind you some of those lines need to have zeroes in them. Like, you don't you don't need to be saving a big pile of money for something way out in the future somewhere right now in your everydollar. So if you're getting to nits into detailed that way, and you've allocated all of your income away. But, but if you've only got this car debt and this credit card debt and you make eighty four thousand a year. I'd like to see you doing about. Twenty five hundred bucks a month court your dad's and you'd be out of that. No time doing that. That's one of lean towards you're doing really good your fire. Kiddo. You call me back. And let me know if I can help with details as you keep working on that. You've got this. This is James Childs producer of the Dave Ramsey show. Did you know you can now listen to the Dave Ramsey show on Pandora and Spotify for all the ways to watch. And listen check out our show page. Daveramsey dot com slash show. Hey, if you've got questions about retirement investing, becoming an everyday millionaire, go bigger and broader with my man Chris HOGAN on the Chris HOGAN show. I am excited to be able to talk to you all weekend and week out. We're going to focus on your calls, and it's going to focus on building wealth investing, and how to become an everyday millionaire. Subscribe to the Chris HOGAN show wherever you listen to podcasts. Hey, it's James producer of the Dave Ramsey show. This episode is over the check the episode notes for links to products and services you've heard about during this episode. Thanks for listening.

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Ready to Crush Your Debt? (Watch This)

Chris Hogan's Retire Inspired

47:48 min | 5 months ago

Ready to Crush Your Debt? (Watch This)

"The, Ip coming up on the next episode, I'm going to share with you six ways that you can feel what crushing levels of debt and I've got a caller. She did it she? No, she did it. She made a mistake. She pulled out all of the money of her 401k and it's just sitting in a money market account. She knows she made a mistake. The main thinks she wants to know is what does she do now we gotta get her on a plan they to. Welcome to the Chris Hogan show home of everyday millionaires. I am Chris. Hogan, your host VIP's this is your show where your life and your money take center stage and never forget it is your life. So you have to take charge. Glad to be back with you. We've got a great show lined up. We've got callers that have some real world questions just like you have and I want to invite you to make sure that you are staying connected I'm hearing a lot of feedback where the show is growing international I'm hearing from callers in Australia the. Bahamas. even California wait a minute. That's that's not international. You know what I'm saying you've got people from all over and we are loving it loving the feedback loving that you're tuning in and loving that you are chasing down progress. I'll tell you one of the things that I am noticing with the show is that we have people calling in from early. Twenties all the way up into sixties sometimes even seventies and what that means is that we are reaching people that regardless of their age or their stage, they know they can still take charge and I wanNA encourage you that no matter where you are right now. Okay. You aren't stuck. I think you just stopped and a lot of times what we have to do as jumpstart ensure that we're listening to information that not only encourages us, but also pushes us and. So. I hope that I'm helping you to stay on course. I hope that I'm pushing you because that's exactly what you do for me. You keep me connected you help push and encourage me as well and I WANNA. Thank you for tuning in and being part of the show without you. We don't have show, and so I want to say thank you. Thank you for your support. Thank you for you telling your friends and family about the show as we continue to grow. Today's article. It's GONNA come from bank rate and this one you knew it was gonNA grab my attention. I, think bank rate did this on purpose just so I will talk about it on the show I don't know but here it is six ways to bounce back from crushing levels of debt Okay Oh at that title right there. That's like a movie trailer. You know you see that how'd you bounce back from crushing levels of debt from bank rate? Well, first and foremost let's get real VIP's you and I know that we have. been marketed to to accept that debt is just a way of life. Well, no, because here's the deal debt equals risk. Now, I can remember in Grad School and in other things that they talk about Oh pm Yana within means as other people's money, and then the topic of leveraging how you use someone else's money to be able to situation under the DA nowhere. Did I ever hear the reality that debt equals risk while I'm here to tell you don't get it twisted don't get it confused you WanNa see it for what it is. And if you've got debt in your life or something, I, want you to do about it. Today seriously henceforth and forevermore I sound like one of the old school people don't henceforth and forevermore if you have debt I want you to do this one thing because if you do this one thing, the situation will start to change you ready for it. Here it is. I want you to get mad I want you to share your face and look at this thing and realize you know what you've got to go. That's what you're. Doing today I want you to evicted because it's time to make a change. Now don't tell me how can you don't understand things are tight right now we've got this covert situation. We all this going out listen to me. There's always something going on. Okay. What we have to do now is to be able to see pass right the obstacles be able to push pool drag. We've talked about that before past obstacles and say now what? You see I'm talking to people are telling me Hogan listen this year situation. This year I'm GonNa tell you. I'm I'm just going to have to wait till next year I. Know we are not going on pause for the next five six months and and play like we're just cashing it in. No. Okay. Now, why am I telling you that? Well, because at times I felt that way then I just wanted to hit the fast forward button. Let's just get to twenty twenty one and then start this thing all over. Okay. Well, guess what I dream of Jeannie was a TV. Show back in the seventies. Okay. That little woman would blink. She'd pop out the jar and just make stuff happen that ain't happening here. All right ain't gonNA happen. So what we have to do is blink and start to get mad and when you get frustrated irritate you can start to make some changes. All right. So here's the article it share six ways to bounce back from crushing levels of debt. You know if it's off track I'm going to call it out. But if it's on point, I'm going to give it the credit that deserves all right number one, evaluate your budget. Well, I agree with this because the budget helps you till money where to go instead of wondering where it went. Now, why we evaluate in the budget because what we're wanting to do is to get focus. So we CAN STORE UP AMMUNITION AKA money to be able to fire at this debt to be able to get it out of your life. So we've got gotta understand where money is going and more importantly your money leaks. Oh, money leaks. Yeah. We all have them we. All have a category or two that you tend to spend more than normal on. We got to figure that out all right number to take stock of all your debts. I don't know why take stock what do we listen here list your debts out. Okay. Understand what you make a list of exactly where you are right now you've got the statements that are probably sitting over there on the desk 'cause you don't want to open them because you don't want to look at it. Let's go ahead and open it make a list of the debt small list of biggest and to be able to deal with exactly wherever you are reach out to creditors and lenders. Times in in a situation, if you've had a job loss of income reduction, you gotTa talk with them to be able to try to work something out Remember when you talk with him, you are not seeking permission you are giving them information, and so it's a different mindset. I'm not gonNA take a bunny rabbit trail there 'cause I teach people how to deal with this a lot. Tip Number four in the article don't miss out on discounts. Okay now this one. Here's the deal. How can you figure out how to save up more money? Okay, that might be with your insurance multi policy discounts the place where you have your winters or your homeowner's in your car insurance, you may be able to save a few hundred dollars if you have them at the same location, how do we plug some money leaks? Right? How do we begin to kind of be a little bit smarter with meal planning per se right so beginning again, we're not saving money just to save it were saving it to be able to aim to debt nothing to tip number five Organiz your finances digitally while I completely agree here, we happen to have the best budgeting tool on earth in everydollar. everydollar dot. com use it for free or there's a plus version of every dollar that you can actually connect to your bank account. Either way it's impossible VIP's to manage anything. You're not aware of if you don't have awareness, you can't control it right and so then finally it says look into out side hustles or side hustles excuse me. Now here are some of the things now again, why would we look side hustles because we're trying to bring in extra Moolah to throw toward the debt now people often tell me Chris I. Don't you always talk about get extra money and do but but you don't I don't know what to do. Okay. Look first of all, if I talk about making extra money, I always give a few examples and the article actually goes through a few look at this one walk dog on APPs Like rover have no idea what that means. Okay I don't know I I. Don't know. What is this? APP. Okay. I don't know either way option to delivery driver. Now you know I mean Uber Eats Door Dash pizza delivery. All of these things right now are growing and are in need I've talked to people that are doing shifts after the job get this one couple they're doing shifts alternating. Okay. when they had because they had kids after the kids go to bed. So one. Parent puts the kids in bed. The other one goes and works and they alternate throughout the week another young couple. This is hilarious This was a gosh. This was back in March I want to say they actually did uber eats or one of these door dash or google dashes out or whatever but they did it together they called it their dates so they were actually working to make extra money while. They went out on their date, which I think is absolutely phenomenal way of teamwork. Here's some things you can do sell some stuff online at Z. skills share. There are things that you can do to bring an extra money around your house on facebook marketplace craigslist posh mark ebay listened sell stuff. The key is is once you sell it rich doing it to help get out of debt you WANNA hold. Onto those funds and directly at a debt as soon as the money comes in, don't let it just sit there. Here's the deal bottom line is and trying to get out of debt. It's not a math problem. Please don't try to rationalize it by just trying to just simply do math because that won't get you out of debt. The bottom line is it's a behavioral problem. It's you controlling you you being. Able to say you know what? I am not doing that anymore I'm not buying these sets of golf clubs right I'm not buying this next pair of shoes I'm GonNa be intelligent I'm going to be focused and not finish and I'm an attack this debt you've got to do it and the bottom line is you're not going to get out of debt until you get frustrated and irritated remember said show me. Your face s where you get mad at the debt because getting out of debts about momentum and I want you to attack the smallest one I well, making minimum payments. That's the that's the approach that we teach and you've got to do it. But the bottom line is, as you've VIP's have to make up your mind it is something that has to become personal to you that you look at this and. You say I'm going to fix this now granted I want you to be aware you may have taken five, six, eight ten years in the to get to this point of debt. Please don't expect to get out of debt and five minutes when it took five years to accumulate that's you managing expectations and when people get frustrated and irritated they tend to stop I won't encourage you to keep pushing forward you. Can Do this one day at a time. Again, the article is six ways to bounce back from crushing levels of debt is from bank rate. As always we'll put a link in the show notes those of you that are watching on Youtube, just click the link below it will get you right over there. Some pretty good information. The bottom line is as we have to take charge, we have to do the thing. VIP's you know I want you to take charge of your money. Don't let your money just sit around while you do all the hard work, make your money work for you with an online emergency fund savings account with fairwinds credit union. I'm a huge fan of fair winds online banking. It allows you to bank anytime anywhere. You don't even have to live in the state with the branch to be an online member and with your fairwinds mobile APPs, you can transfer money or make a deposit using your smartphone or tablet. So move your money over to fairwinds dot org slash Chris Today. That's fair. Dot Org Slash Chris fairwinds as federally insured by the NCUA. If you're out there and you got a question I want to hear from you. The number to call is eight, four, four, two, eight, three, nine, three, eight, three, again that's eight, four, four, two, eight, three, nine, three, eight, three, call me leave me a voicemail. Let me know the question that you have on your mind or if you prefer send me an email asking Chris Hogan three sixty dot com you'll have done an amazing job of opening up and talking about the questions you have on your mind and I appreciate that you have no idea that when you ask that question you've got. Other people that are wondering or thinking the same thing. So you have in the courage to reach out you're actually going to be not only helping yourself, but you're potentially helping others and I. Just want to encourage you to continue to reach out and let your question be heard. All right. Here's the deal. It's time to go to the phones, the Ip's, and this is what we do You can call in leave a voicemail. We'd love to talk with you but I've got going to Maryland right out of the gate here. I've got shared on a lot. Sharon, how are you today? I'm focused not finished on lady what's on your mind Wa- did a bad thing. I'm currently unemployed. But when I left my job I took my four one k. with me and put it in a Money. Market Account. So we're staying is I'm unemployed two hundred and fifty thousand dollars in this money market account and I have a fifteen year mortgage in forbearance. That's four hundred, thousand dollars. What should I do all right now Sharon you said when you left how much was in the 401k before you catch it out Oh guy, it might have been like grease up. Okay at so I'm not owed taxes. I have to pay a little bit more taxes on it. When did you pull this out I? Pulled it out. It's been about much April I think in April okay. So you did it during this covert stuff. Yes. Okay. Why did you do that? Because I was afraid of company would have in problems took they were downsized as a little nervous in. Better some money than no one knows a big mistake right? Why do you think it's a mistake because I own taxes on it now? Missing out on the money that I could get in the stop. That's right. Did you talk to anybody before you did that or did you do it on your own? My own yeah. A lot of people in the midst of that, and again, we've never seen a pandemic or anything like this. A lot of people make that knee jerk reaction as others a couple of things I want to suggest first foremost a you've sat the money. So you have you have you spent any of it at all. No. Okay So how you said you're unemployed. So how are you living right now? Just. The unemployment until I can find employment. All right and what field are you in and saving physical therapy. Okay. All right. So even though shortage of that need that without a doubt, here's what I do. I would reach out go to my website Chris Hogan three, six dot Com I want you to have a conversation with one of the smartvestor pros these are. Investment professionals the David I have vetted and selected across the country that will walk you through in guide you now I, say that because the market right now back in February, the market was that at a high this covert thing hit and by the end of March things were tanking. Do you know like within the last couple of weeks the market is not only come back. But it's higher. Okay. So that means that that. Yeah there's going to be these downturns and and I'm GonNa tell you the Sharon. So as you move forward, you know we we all make knee jerk reactions at times. But what I want you to do is to have confidence as you talk to the smartvestor pro understand what it is you're investing in and understand there are going. To be those that roller coaster type ride the key is is just a remain calm. Okay. Remain calm and you get in the smartvestor in your life is going to be able to help guide you. Now let me go back on Chris back on your website Osmium Chris oaken three, sixty, dot com you click on the Dream Team Button and you can find a smartvestor pro. Okay. I WANNA shift real quick because you mentioned something else she said you've got your mortgage that's in forbearance. fifteen year forbears until Well, they said September. So I guess I'll see if I can get another forebear. Okay and so you reached out to them and talk with them and they granted you do you have to make any payments during this forbearance? Okay and so yes, definitely get back on the phone with them. Talk with them. Let them know your status about where you are what's going on because you've obviously done a very good job of communicating with them and I want you to call them and I want you to keep a log of who you talk to and what they agreed to, and so that way you move in forward, you can know, okay this next forbearance is going to last until how long Bell Sharon here's the deal there is. No mortgage ferry, which means with the forbearance a couple of things. Okay. You WanNa find out a is it just being the mount? That's owed being just moved to the end or there's another type of forbearance where at some point you gotta bring it current or refinance it. Now you're on a fifteen year I don't want you to go backwards and don't let them talk you into a thirty or any of that stuff, but just communicate with them. So you know exactly what's going on and exactly the timeframe. and. Then what we gotta do jump start finding bringing in income You are trained in a field physical therapy that is very much needed around hospitals and rehab facilities you're needed. Now it's a matter of getting proactive getting your Mojo back and letting people know that, hey, you are looking you are looking for employment and so be proactive on it and as you reach out to those people about jobs or potential places that are hiring I want you to be proactive in your. Following, up with them don't wait to hear from them. I won't you to be proactive. Let the know how serious you are about this job and that's firmer. So smartvestor pros going to help you get this money reinvested right so i. can start to grow for you because sitting in that money market account, it's not going to reach out to the mortgage company talk about this for Baron situation find out exactly the timeframe your dealer with three we're going to get proactive on bringing in income for you. L. I appreciate you calling in is one of those situations where you get a a multiple area to be able to give some guidance and Sharon I appreciate you calling in to talk because other people have the same questions. VIP's hear me the market is going to do ups and downs. Sharon said she pulled money out she got scared. Right, now she's realizing Oh my gosh, I made a mistake so I I won't us to learn from this and realize that, hey, the market is going to do that, and what we have to do is have this long range. You remember we invest for five years or longer it's going to go up and down. That's what it's designed to do. What we have to do is be clear on what we're investing in and understanding how it works and just because it gets all topsy turvy in the market you. Don't need to do that with your emotions because you know the goal, it's really important to be focused So thank Sharon again, thank you very much for your call. All right. Let's go to. We were in Maryland, let's go to Pottsville. Pennsylvania, I've got a list on the line. Let's how are you? Hi, how are you Chris? I'm focusing on finishing lady what's on your mind I was just wondering should I pay off my mortgage as fast as other deaths when I'm using it as like my rental property? Okay so you you your home is now being rented out. Yeah. Okay and where are you living? I live with my boyfriend for the last three years. Okay. So how much is the mortgage payment on that home? The payment a month is like three sixty. Eight hundred sixty dollars. The escrow in there two. Okay and how much are you charging? Seven fifty. Okay. All right. So you got you make some profit on this thing. Taxes in the ASS girl it's not too much right see and how much you own it I sixty eight. Okay. And how much do you think is home worth? Like eighty okay what other debts do you have? None of this is only one you got. Okay. So you want to know, do you attack this mortgage with the same intensity as baby step two, right? Right okay. Do you have so you out of debt? Do you have a fully funded emergency? Fund? Okay. How much? How many months you got? I have six months of of not expensive of. My Bank account and then plus them. Okay. So typically, so you're familiar with the baby steps right and so do you have any children? Okay because I see a cute little baby in the arms here in this picky said he's. Got You didn't have to. Okay. So here's here's what I want you to do. We tell I'll tell people baby step two. You are going to attack it with all the intensity that you can and then you want to have that same kind of intensity to build up your emergency fund however. Elicit when you get to baby steps four, what I wanted to do is remember four five and six done at the same time baby step floors investing fifteen percent. Maybe step fives we start to save for college and baby step six attack in the house. So. Is it the same intensity? Not necessarily because you're doing multiple things does that makes? now, I still want you to have the mindset, but it's not going to be as intense as baby step two, but you're still staying focused on it. So I I would say looking at this, you know you want to start to save up for your your kids in in college question. How much of that? Do you put away like? Yeah no, that's a good question. What percentage is that post? There's not a set percent What because how old is your is your oldest kid? Shelby two. Okay. So to and you got one is brand new come. So you start to look at this you've got fifteen years or more, right so you could look and decide to say, Hey, I'm going to set aside a couple of hundred dollars a month any essay educational savings account or five, twenty, nine, not a state directed five, twenty nine but at five, twenty, nine. Elect the investments So you do in a couple of hundred dollars toward it will allow that to grow over time. So here's what I want you to do I want you to go to Chris Hogan three, sixty, dot com I want you to reach out to one of our smartvestor pros you can start to talk about what to wear to invest and. How to set up the five twenty nine but I still want you to be very intentional about attacking that mortgage and then you know you guys as you walk through this, you guys you got kids now you just need to set a wedding date and then you know everything just moving all in right direction right? Make this thing official we got got family. Let's get to go down to just let the piece. You know I do we do we do and you move forward and then you guys can start to figure out where you're living in start to make these decisions together. Elissa. Thank you. For that question you know the bottom line is this a couple of things people will ask, hey, how much do you put? Aside each month for saving for college, and there's not a set percentage but again, you start to think about it. If you're doing three to four hundred dollars a month or one hundred dollars a month when your kid is really small, you've got an opportunity to let this money grow. Now if you're a little bit further on or your kids are a little bit. I just don't want parents wigging out pulling out money out of their home equity in their home taking out a, he lock a home equity line of credit right for young people to get higher education. No, we're not doing that new not up in here where we're going to do is be clear right and stay very intentional and save over time there. Are many ways for young people to get higher education. Okay. They've got an opportunity to go to community college. They can go to school at night while working. There's a lot of options and parents don't want you mortgaging your future on a fifty fifty chance that your kids to go to school graduate. There's one hundred percent chance you're going to retire some point so. You need to make sure you've got money set aside. Okay. Did June oh I love this section this ragged a chance to hit you with some new information but did you know the top three investing risk? Okay. We talk about investing all the time you and I know that building wealth always involve some type of risk if you WANNA grow you. GotTa be willing to take some risk that's in life right? You really do if you're trying to grow relationship if you're trying to grow intellectually if you're trying to grow spiritually in whatever you're gonNA, have to push yourself and move forward in my first book retire inspired I unpack the three most common investing rhys now hold on a second because I I know. I've got some millennials out there going here. Go here's Hogan talking about this old people stuff. No listen to me first and foremost retirements not an age it's a number, and so I'm talking about if I can help young people get started early, what you're going to do is be ahead of the curve. So retirements not old people stuff. It's smart people stuff. This is where we're starting to invest and build wealth. So I wanNA talk with you about these three most common investing risks that are out there number one well, wrist I'm one we can imagine is the risk of losing money. The stock is a living breathing thing it really is and the value of the market is going to rise and fall this is. That rollercoaster that I'm talking about why? Because we have a lot of things going on out in the world at any given time a lot of things happening in DC, and so you're going to see the market respond. If something's happening out there in the world that comes as a shock or surprise, the market can respond low if something else happens that. Is, a big encouragement it'll grow. Now there's not typically a rhyme or reason around it is just understanding that humans are involved in this market right with the companies. So we've got understand that losing money that's a possible risk number two getting beat up by inflation a real quick for go any further because you all know, I, like to have a conversation with you. You hear these words, a lot inflation deflation. All the stuff inflation simply means the cost of living increases the cost of goods increase over time. It's more expensive to make it. So that's why a dollar from nineteen eighty right isn't necessarily a dollar. Now in twenty twenty, it probably looks more like fifty cents. The cost of things have risen so it costs more thus the importance of US growing money. So when I talk about getting beat up by inflation, I'm seeing people that aren't investing at all. They just have money parked in a savings account or worse in a mattress in their home. Right? This is it is. You can't do this Some people will try to avoid risk altogether by not investing and I'M GONNA. Tell you. It's a bad move because your money will shrink if you're not growing it I e investing it. So if you don't invest inflation can kick your butt it really and truly can. So you WanNa look at this and acknowledging the third one. Oh, this. One every time I talk about this next one, I still remember several people's faces The didn't do this, and I just remember the look on their face because they didn't know about it and I'm talking about putting all your eggs in one basket not diversifying not spreading the money around It is so important not put all the eggs in one basket You've got an opportunity to use gross dot mutual funds I've got the the investing guide at my website that's a free pdf that you can start to read through a smartvestor. Pros will walk you through these, but it's so important to spread around because you putting all your stuff in a company stock. I E, Enron or putting it all in another thing it just so many companies so many nightmare stories You know there's another way you can diversify. You can diversify into real estate that's paid for. Okay. Paid for real estate is the only way to go but this mindset around of. It's important and it is. So we can outpace inflation so we can grow money ever remember when we're putting money into four one ks and four, zero, three. Bs You know we're doing we're putting money in a bucket that will become our paycheck leader. The piece here me with this have you ever thought about that money in the 401K and four zero, three B you're putting money in there so it can grow and beat inflation, but it's also going to become your paycheck later, and so it's important for us to get money into that bucket. Let's get that bucket growing for you and moving in the right direction. That's why I tell people. I don't want to reaching in the bucket to pull money out of the 401k really that money in there. So it can grow our you go. There's your did you know all right? I got a facebook question in you all know I. Love. This social media I love all the things there and on instagram twitter. You can follow me at Chris Hogan. Three Sixty also inside of facebook. We have a an everyday millionaire facebook group that is absolutely rocking and rolling You can go to facebook dot com slash Chris Hogan three sixty. Click on the group section get over there joined that group they're eighteen to eighty they are on fire there cheering each other on it's just a fantastic group. You can get some accountability as where some cheerleading it's just it's fun all the way round you wanNA check it out but it looked this question from Zach. This was one that it was a theme right every once in a while topics will get started in there and tell you they're chatty and encouraging group. But this is something a lot of people are feeling and this is inside the group as well as outside the group and I wanted to I wanted to make sure we talked about this Zach says. With today's political climate. And Failing of society I'm losing faith of investing in my 401k or at anything else at all. I'm thirty years old and hate to struggle so much to build a future if it'll never be there. Meet coach to talk me down I guess thanks in advance. You I read that and really and truly rented three times, and then I started to really kind of think and Zach is hitting on a lot of things and a lot of feelings and emotions that are going on at are prevalent in our society right now. The political climate. The failing of society, which in so many areas of things that are going on losing faith in investing, but he says or in anything at all. and. Mentioned struggling to build a future. Zach I want you to hear me my friend The Times that we're dealing with right now are unprecedented There are a lot of stress strain going on out there I can hear it in your words and I don't know you don't detail what all your wrestling with but I want you to hear me as tell you this too shall pass. And I say that statement and I don't WanNa say it in a flippant way because what you're wrestling with and a lot of the things we're wrestling with right now in this pandemic people that are having health crisis people that are going through relationship issues, people that are unemployed it's a lot. And it's been a lot on top of a lot. and I understand the the being weary. you get weary you get tired You feel like you know everything is always pressing on you but I want you to also do something for me. I want you to hear me this political climate pack lesson. There's nobody we're GONNA put in that White House that is on a throne. we have one. Lord and Savior. We can elect anybody better than that. So that is neither here nor there okay and I want you to vote and and all that stuff. But but at the end of the day and don't put your hope in the White House that that that never lasts longer never goes well society I have faith in US I. We all have issues there are tensions and things. Now that are happening and a lot of different areas but I still think the hearts of people are good and I think what we have to do is to make sure we're showing that and how we interact with each other and fellow brothers. And how we respond to situations the media times loves to be able to show us all the negatives and I get frustrated era -tated Zach because you don't see many positives in the news but there are good things that are happening you thirty years old you're young man struggle is a part of life and you're GonNa get through this period of time I want you to control the controllables my friend I have felt the sentiment that you're feeling at times as well, and I remind myself what can I control and I can tell you five things my faith. My attitude, my outlook. My actions and my responses if I stay in control of those five things and realize that I can't control the other stuff, I can't control other people. It helps me to remain inside and stay focused on me but also how I'm interacting and treating others. So young man I won't get connected with people you need friends in your life you need to be focused I hope you're connected with Church or group of people that you can. Interact with and have a conversation but I want you to hear me this is going to become a period in time that we look at just like we did with SARS in Haute three and four just like nine eleven that were some of the darkest days that we've ever walked through just like y two k where everything's supposedly is GonNa shut down and it didn't will look back on this and we're going to grow from it. We're going to grow but I want you to hear me you are doing things that are worthwhile and you investing in being intentional with your money. It is worthwhile. You are going to have a bright future. You're thirty years young. You got a lot of life and a lot of good things to do. I. Just want you to stay focused on man 'cause you're not finished. Vip I want you to hear me because a lot of people are feeling this exact way. A lot of people are feeling the stress and strain of all the things that are going on right now and feeling frustrated or maybe even just flat tired just tired of the struggle. That's real and that feeling is real and guess what you're allowed to be tired. When I don't want you to do is to be defeated. That is the thing that I don't want to get to. So we have to pump ourselves back up, find some positive things to read be encouraged remember I tell you it's hard to be hateful when you're grateful. So I want you to. Find, some things to be grateful for because I assure you somebody somewhere is dealing with something a little bit tougher than what you are and what we have to have is that perspective that awareness? Vat. Empathy to be able to be supportive of others. But at the same time controlling what we can control vis life stuff is not easy. Obstacles are going to come challenges are going to. Come it's a matter of how we respond to them and what we have to do is learn to grow and be intentional with, Hey, what can I control? What can I not control and I don't WanNa be confused on that and you stay clear and you stay rooted Zach. Thank you. Buddy I really appreciate your and you opening up to let me know what's on your heart. VIP's if you're out there and you've got a question, I want to hear from you eight, four, four, two, eight, three, nine, three, eight, three again that's eight, four, four, two, eight, three, nine, three, three, call lead me a voicemail. Let me know what's on your mind. I'd love to hear from you or if you prefer Simeon email ask it Chris Hogan three sixty dot com. All right. Back. To the phone got going to Pennsylvania I was in. Pennsylvania already wants I'm back Donna. How can I help? Well I'll be retiring soon. Is when they kicked me out, I'll be there for well hopefully okay and I keep hearing talk about the the Roth Ira, the Moth IRA I want to focus on paying down the mortgage. I, do have a financial adviser that I I did get through your show She's wonderful. So I am trying to work on the mortgage I started paying half. I just started doing that. Bank have well paying the full payment and then paying Howell. Okay. Okay. Payment a payment and a half. And how much do you owe on the mortgage Donna Eighty Thousand Okay I paid off all debt I. I would ball I've been listening to your show. Because This is the first time I actually did go onto the financial peace university. I just WanNa, make sure that I'm putting my. Money, in a place like you say, that will have interest compound interest grow. My Year you know years of working now kick you out and so. I'm just trying to get prepared. Yes. Ma'am how many years have you been working? Too. Many. Just. Enough up said I don't need to get around Donna Melissa. Thirty five okay okay and so you. Eight on the mortgage what's your income? Yes it's. It's small now because it's it's a sort of after job. After the big. Job. But how much I two thousand a month. Okay and how much is your mortgage payment? Well, that's including taxes and everything. So it's about nine twenty, six. Okay I'm alright. Not that that's bad and that includes taxes without taxes. It's like, okay. How how much is this Homework Donna? Right. Now about two fifty okay. is to fifty eighty and your payment is nine, twenty, six a month. and. You're bringing in a relaxed two thousand a month. Okay. And do you have any other source of income now? So you got two thousand a month coming in do you know what you're going to be having coming in retirement? That's it. No but I do have I've been saving okay I have about two hundred thousand in three American funding. So I don't know if I'm allowed to say that. Plus another three thousand and the company 401K that I'm currently working. Okay. I mean investing is going to be important. But here's my concern for you that you have two thousand a month coming in. But your payment on this mortgage is not twenty six. This House may need to be sold now as you look at this and you begin to think about. What you have in retirement remember net worth is what you own minus what you. Oh so the equity in your home, the money in your 401k's the money and Roth Ira's all of these things will be added up But looking at this, you have you got a healthy mortgage payment on the level of income. So do me a favor reach. Back out to the SMARTVESTOR, pro start to look and understand exactly what your income is. GonNa look like in retirement but investing is still going to be important. We still need to grow this money because of inflation, which simply means the cost of living is going to go up right because things get more and more expensive and yeah dig into. This and really look because what you do is just not only have the pieces of the puzzle, but we need to know the timing of what are we doing and when are we doing it and Kinda thinking three to four years out moving in the right direction in the process. Thank you very much recall. All right. It's now time for panicked. Or pumped ragged a chance of role Manhattan and coaches a little bit right where you are I gotta panic email in this is from Trenton. Trenton says Hey Chris. My question is about my credit score A. I'm on baby step two and I don't want to worship at the altar of the Great. Fico I really do believe that it's better to have zero credit score than to have an eight fifty score. I have full intentions on closing all of my counts and eventually leading my score dropped to zero. But for now, I have a score of five ninety and a moving soon, I've heard people recommend paying down some of the credit card sooner or faster to raise my score but that would be out of the order and the debt snowball. I've heard that apartments won't rent to you with a low credit score I want to keep following the plan but I'm worried I won't be able to rent an apartment if I don't get my score up I, appreciate the help and thank you for everything that you do. Okay Trenton here's the deal. Okay. Bottom line you China rush and make payments and all the stuff on a credit card or whatever is not necessarily gonNA increase your score You're at a five nine at which VIP's. There's a difference out there between no score right and a low score. So Trenton, the big thing for you is going to be it's all about the security deposit you see apartments we'll rent to you you need to call around and find and the place you're thinking of moving to call around speak to the property managers and ask them about their their policy. Let them know my credit score low. But I do have cash, and so if the security deposit thousand dollars, you can tell him I can offer a double security deposit I can give you two thousand dollars I. Don't have asked credit but I do have cash. Big thing is is they want to know are they going to get paid? Right? They WanNa know this, and so I would just call around and talk and find these property places that don't necessarily vote take the score as the end all be all but I would just talk with them over the phone there is no sense in you applying If you've got an apartment complex or condominium complex that credit scores ninety percent of what they consider. No, you want to move on and just ask them, Hey, mark credit scores around five ninety But I've got a double security deposit or I have cash to have that realistic call over the phone find out these places that are going to work with you and be real with you, and then you can go sit down and talk with them. You can do that. But I do want you to follow the baby steps in order. I want you to evict debt out of. Your Life Right. So you can move on and continue to build my friend Oh, remember VIP I. Told You. We ran a national see I told you and look check this out. I've got a email in from Raphael He's in Brazil his where he says he says, I'm pumped my wife and I came from very poor families but through hard work and education, we're leaping out of poverty and starting to build wealth where both thirty four years old and have learned since the last decade methods to saving money and investing today were working on baby. Steps six with some adaptations because the Brazilian reality is a little bit different but we're very excited to pay the house off before our forties but I'm not here just to say I'm pumped I'm here to say thank you for all your guidance and motivation. You've given me a brand new sense of purpose and made me think why am I doing it now when I asked myself, why am I driving a twenty year old car or why am I, not spending in a frivolous way the answer is because I'm changing my family tree and building a legacy. Thank you for everything. That's really cool. Oh, you got a picture as well. beautiful family Rafael, listen to me I I'm grateful Thank you. My friend I'm pumped for you. You see one of the things that you and your wife have done as you guys have not only tapped into why but you've also tapped in to the power of choice you all have understood exactly what it is. You're trying to do changing your family tree and building a legacy, but you've also tapped into the choice factor where you get to decide and yes, you're driving a twenty year old car or you're doing X. Y. Z. or not doing X.. Y. And Z. but you know your choice and your reason within you. That's when society stops dictating to you. That's why you stop worrying about what people are thinking and you start focusing on what it is you're feeling and what it is, you're doing my friend that's how you begin to build a legacy and you make some changes. So I wanNA tell you congratulations I'm proud of you I'm proud of the precedent that you're setting and I hope you continue to tell more friends in Brazil about what you're doing and the path that you're on and you could get more people on that journey with you my friend that is fantastic. VIP's if your home or wherever you are and you're feeling panicked or pumped I, want you to know you can reach out to us if you're panicked or you're stressed out frustrated or irritated about something and you go, I don't have anybody to talk to. That's just not true. All you have to do is email us ask get Chris Hogan three, sixty, dot com put panicked right in the subject line and write to us get it out of your head, get it on paper Let's talk about this thing or if you're feeling pumped up and you go I have done something good and he nobody to. Hide five me nobody give me a fist-bump nobody to tell me great job. That's not true. That's why we're here. Email us ask it Chris Hogan. Three six dot Com put pumped right there and love to be able to talk to you boy. Oh boy I like when people get real listen I want to thank all of you for taking the time to tune in I wanNA to thank all the callers for calling in and everybody emailed in. I want to thank the entire Chris Hogan, show production team. They are rockstars people, and they make stuff happen. So until next time don't make excuses make progress. VIP You. Don't WanNa miss that coming up and so I'm GonNa give you some retirement tips for each and every decade. Yes I'm gonNA walk through tell things to do and things to watch out for and I've got a caller. He is starting to stress out. He owes around eight to nine thousand family and friends, and he's like this debt starting to deal with him. He wants to know what does he do? How does he handle it? I'm going walk him through the process and helped him have a plan. You don't want to miss it tune in. Belo everyone. If you enjoyed this podcast, we have more from the Ramsey network like the Rachel cruze show. Guys it's Rachel Cruze and I'm so excited to tell you about my podcast. A lot of people are living paycheck to paycheck debt. They don't even know where to begin, but they have this needs wants to get in control of their money, and if that's you, you come to the right spot. So in each episode, your and get a ton of inspiration and practical advice if not subscribe to the Rachel Cruze Show podcast make sure you do it today. If you'd like to hear full episodes, just search Rachel, Cruz wherever you listen to podcasts or go to Rachel Cruze DOT COM.

Chris Hogan The Times VIP Chris Bell Sharon SMARTVESTOR facebook Zach Pennsylvania US Trenton Donna Melissa fairwinds credit union Australia Grad School Rachel Cruze
Calculating How Much to Save Each Month for College (Hour 1)

The Dave Ramsey Show

39:54 min | 2 years ago

Calculating How Much to Save Each Month for College (Hour 1)

"Live from the headquarters of Ramsey solutions. Broadcasting from the dollar car rental studio, it's the Dave Ramsey show. Or dad is dumb cash is king and the paid off home mortgage has taken the place of the BMW as the status symbol of choice. I'm Dave Ramsey your host. Thank you for joining us. Open phones. Triple eight eight to five five two two five that's triple eight eight to five five two two five. Ashley is with us in Indianapolis to start off this hour high. Actually, how are you? I'm great, Dave. How are you? I deserve. What's up? We are on BBC four five and six, and I'm trying to figure out how we know how much we can save monthly to pay for kids college. So that we can start using the extra to attack the house. Okay. Okay. Well, we have to have two things to variables on that that we know. And then you can just sit down with your Smartvestor pro and they can calculate it for you pretty quickly one simple. It's the age of your child. How many years of we got left to save? How old are your kids? Eight and twelve okay. All right. So we have six and ten years to go. Right. And then we look at okay. How much does college going to cost that one's a little more complicated? But you can get some help with that college tuition is about college tuition. Inflation averages for the last fifty years or so about seven percent a year, but we can just look at today's as an example and say the typical college today is about forty five thousand dollars tuition for instate state schools, plus room and board. Okay. Okay. And so, you know, you're looking at sixty seventy thousand bucks, and if we just said, we got eight years to do eighty thousand dollars that'd be ten thousand a year the bay hundred month, not counting the fact that the money will grow, and it will grow. And so you won't need that much probably need four or five hundred bucks a month per kid in your case. I'm roughing dirtying this. But that's the way you would go about the calculation. You can actually put the college target dollar amount and the years and the rate of return projected on your mutual fund into a simple, financial calculator with your Smartvestor pro. And it'll spit out exactly what you need to be doing to make that exact amount by then, of course, that assumes no scholarships. That assumes the kid isn't working that assumes all these things which I would assume scholarships and kid working if it was me, you know, because I'm gonna make them apply for a bunch of scholarships and get the. Free money, and I'm also assuming state school. Because unless you're making serious Bank. You're not gonna make the prestige school tuition by the time these kids get to college and since you're just starting and yet been caused a lot of money per month to do that. So, but you can sit down with those things and figure out. Exactly what you need ending back right into it. It's not that hard. Elliot's with us. Elliot's in Phoenix Arizona. Hi ellie. Welcome to the Dave Ramsey show. Having me what's up already? So I have three thousand orders left on my car, and I have about twenty two thousand dollars in credit cards. And I was wondering if I should. So my car to pay off the leftover and the credit cards and just drive something, you know, not as new. You have how much left on your car three thousand left to pay it off pay it off thousand dollars left to pay off credit cards. Yes. So five thousand dollars makes you debt free. Yes. And what your car worth? Okay. So the private party value was fourteen thousand and what do you make a year thirty five thousand? So how old are you twenty one or you just graduating college and getting started or what your story? No, I'm in school right now, I'm studying forensic accounting. I have about one year left. So I'm at the job on at. I'll be here for about a year and a half until at least finish my degree. Well, at thirty five thousand living like a college student, if you just crunch it down, you can pay off thousand dollars in debt and keep the car not that. I was also I was thinking that I'm like climbing events right now like I'm not quite on the fence. But I'm like thinking about it. Because if I pay it off, and I can have it all, you know, paid off by the end of the month if I can sell it. But. All done in what five or six months, otherwise. Right. Well, I don't have any other bills have in my my car. So I was thinking of having paid off by the end of March. So end of the day or end of March or two choices. Yeah. No. So I'm end of March and keep the car. Game because you're you're in an upward trend with your income over the next several years, and this car is not going to you know, when you're making forty fifty sixty whatever you're making coming out with fringed accounting. Maybe even seventy five this car's not going to be anywhere near out a line. It's not technically out of line with our guidelines today because we say don't be more than half your annual income. So even today, it's not out of line. But but it's close it's a big fancy car. If you were going to be making thirty five thousand for the next ten years, but you're not ACA so given that trend and given that you can clear up this debt, and it's not much debt. I'd keep the car. There's no way I'd sell it in your situation. I'd work my way through the debt and keep it. Hey, thank you for the call open phones at triple eight eight to five five two two five. Thank you for. Joining us Jason is on Twitter. Davis gold or silver bullion, a suitable substitute for a one thousand dollar emergency fund Biblically it is considered money as an honest and right measure. Yell and so were the narrow I and so were which would be a dollar today, not a dollar, but it would be a medium of exchange currency. There's all kinds of coins and other mediums of exchange mentioned in scripture. I'm so I don't think we can go that gold is more Biblically. Correct. Than currency have a hard time proving that one it was the medium of exchange in biblical times. It is not the medium of exchange today. Oil was a medium of exchange in biblical times. Because oil was used to keep the holy of holies lit often used poor over the head of a king to anoint a king or to annoy anyone for a certain subject because oil was a sign of God's spirit, and it was used often as a medium of exchange. We see that in proverbs when it says in the house of the wise or stores of choice food and oil oil was a symbol an indicator of wealth because it can also be used like we use grin presidents faces as a medium of exchange. So I think you're stretching it the set to start calling goal biblical not really not really not a more than green presidents faces. So no besides that investing in gold and silver is stupid. So just aside from the biblical discussion because it's so volatile and has a horrible track record as. Right of return. It's not where you would park your emergency fund. Not even with the whole biblical thing. Everything. Okay. And they're. This is the taper shop. Stop blowing your budget on your wireless plan and switch to peer talk USA. Pure talk. USA offers simply smarter wireless. Unlimited plans start as low as twenty dollars per month. You never pay data over its fees, and we never turn off your data, no contracts, no hidden fees, and no surprises. We're so confident you'll love pure talk USA that we invite you to try our service risk free. Visit peer talk USA dot com or call eight four four eight six to three six seven seven enter promo code Ramsey. And receive fifty percent off your first month. That's pure talk. USA dot com. Logan is in Nashville. Welcome to the Dave Ramsey show. Logan, what's up? How you doing? Deserve. How can I help? Great. I have a question about working per damn that I get for work into my everydollar budget. So my thought is I would just spend the money on my work trip for hotels and the os and whatever else I need on the trip, and then anything I have left over. I would just take that one some and take it put it into my budget as additional income is that how you would do it. Or would you do it a different way to perfect? That's exactly how it of course. All this race rooming that is a per diem that you get whether you use it or not you do not have to account for it. That's just extra money. They give you 'cause you're traveling. Exactly. Okay. Correct. You don't have to you don't have to give it back. You don't have to account for it. You're not stealing it nothing. Like that. It's a straight out day. Gotcha. Okay. Yeah. You're exactly right. I just had it in a lump sum, and it just like, you know, a server that has tips you just add them up and say bye, that's part of my income. And it goes right there. On the budget. And we gotta give every dollar an assignment every dollar a mission, and you just make some budget adjustments as you go along and use your everydollar app and it keeps her Roland Eric's weather in Boston. Hi, Eric, welcome to the Dave Ramsey show. Hi, dave. Thank you for taking the sure what's up. I'm on baby. Step three, b I'm completely out of debt. I graduated from college last may, and I was curious to know how I could best go about saving up for a down payment for a house. Well, you've done a great job. Somehow getting this point. How'd you save up your emergency fund? So I graduated from school full scholarship to whole way. And then since then I've had been blocked a pretty good income and other true. I've able to shave out two thousand dollars a month give or take. On how things are with commission, and that honestly, fun fun. But being in Boston, it's a very high cost of living area and even a cheaper home. That's about thirty minutes away from where I work is going to be about half a million dollars and a down payment. Twenty percent would be hundred thousand. So I could say that in about fifty fifty months for years. But I was wondering if you think that's the best route that I should take. And should I stop checking bully retirement while I'm doing that? Or what do you think would be the best half moving forward? Well on a first time home purchase on. We don't slam the Mike down and say you have to put twenty percent down. Twenty percent down is a really good idea because you can avoid PM I private mortgage insurance, which will cost you about seventy five bucks a month per one hundred thousand borrowed so it's serious money. In terms of what it adds to your payment. If. You don't put down the twenty percent. But first time home purchase. We don't do that. So I think I think you just start saving aggressively as you have been, and let's see let's see where you end up in about three years with your income going up, and you doing that. I think another thing that will happen during that three years, you're gonna learn the real estate market. Thoroughly because you know, yes, there's half million dollar houses. And that's probably the average in the Boston area. It's an expensive market that wouldn't be unusual. But you know, most areas let me just tell you the national average on homes is two hundred twenty five thousand right now. And so that's the average home price in America. Is Boston double that? Probably probably. But that's adverage which also indicates there's houses cheaper than that. And so if the average is twenty five and a typical town than you can find a hundred thousand dollar house, and if the average is five hundred in Boston than you can find a two hundred fifty thousand dollar house. So, you know, you just gotta look and learn and learn these markets, and while you're saving just, you know, become an expert on real estate in the area. It's kind of a fun hobby to go out and look at proper. On the weekends at the open houses and go around and match up the listings and see what stuff costing and start to learn the nuances of the market. You may find a market that's growing or a jiffy -cation market where stuff still a good deal. And but it seems to be trending the right way. There's all kinds of ways you can skin this cat. So, but in the meantime, just save you a big pile of money, and let's remove the absolute necessity to put down twenty percent. Although it is preferable obviously open phones at triple eight eight to five five two two five Kaelin is with us in Tulsa, Oklahoma. I how are you? Hi, I'm good. Hi, I'm fourteen and I have my five hundred dollar emergency fund already. And my question was what percent of my minimum wage paycheck. Should I invest and save and kind of investing? Can I use right now, you're pretty amazing? You're on kiddo. I gotta feeling you're getting ready to being everyday millionaire before we know it. So who's paying for your car when you turn sixteen? I'm going to pay for my car. And so the larger portion of your paycheck you save the nicer car, you're going to get. Does that your main savings goal right now? So there's three things we do with four things we do with money we worked to create it. You're doing that way to go five way to go rockstar number two thing we're doing to create money or or once we create money by working. We give it save it and spend it, and of course, the more we do of any one of those three the less there is for the other two. And so it's that dance that we begin between those three things that we will dance with the rest of our lives. And it's a wonderful thing for you to build all three muscles the spending muscle wisely carefully. Not too much the giving muscle liberally generously. The saving muscle called car. And so I'll tell you what happened to my kids when they were your age once they started breaking the money up into three categories like that, we're Christians, and so they were tithing a tenth. Of their income that was they're giving portion. And so then passed that they were saving for their car, and they were spending their spending pretty much went down to very little. And the other thing that happened was they started looking for ways to make more money than minimum wage because babysitting you make twenty bucks an hour dog sitting and walking you can make fifteen twenty bucks an hour mowing grass you can make more than that. So, you know, it's just whatever you wanna do. But you can sure make more than minimum wage, even as a fourteen year old matter of fact, both of my daughters went and got the little YMCA certification for babysitting. They where they learn CPR, and they learn a few other things and that kind of stuff so they were certified babysitters that's a big deal. And anyway, they used it. I'll tell you they they they work their little tails off, and they work the book table at our live events on books off the back table, and that kind of stuff, and we worked him my son painted the stairwell here when he was fifteen inside this building. And it's big old building a big stairwell took him a while. Then he didn't do a good do half of it over. And so you know, that all comes into getting paid for the car, but it was a whole lot more than minimum wage in every case and. That's that's what I that's what happened to them. They cut their spending down. So that they could save more because they start saying I'm fourteen I got two years what kind of karma going by two thousand dollars thousand dollars a year. That's eighty bucks a month. And you start doing some goal setting in dividing out. How much you need to be saving and you start going. I gotta get a better job. Probably a good call. You're gonna be all right. Proud of you, very well done. Open phones at triple eight eight to five five two two five you jump in. We'll talk about your life and your money Joanna from the baby steps the Ramsey baby steps Facebook group says I reach maybe four I think I'm ready to start investing in a Roth IRA, and I'm getting ready for retirement as anyone know where to start question. Great question. This is when we send you into the Smartvestor pro in your area. Go to daveramsey dot com. Click Smartvestor, putting your info it'll drop down a list of the Smartvestor pros in your area. Choose among them, you make the choice and I recommend on sitting down with them. They have the heart of a teacher and you began learning for your first set of investing, the the Roth IRA is good growth, stock mutual funds. Really good place to start your baby steps four nothing wrong with that. At all. This is the Dave Ramsey show. In the lobby of Ramsey solutions. Brandon Kelly dropping by hey, guys. How are you? Hey, how are you? Welcome. And where do you guys live Kentucky and wearing a good predators? T-shirt though. There we go, man. A love it. Good for you. We'll welcome to Nashville the game last night. I did watch. It knows good winning in overtime. I caught it too. Proud of our our doing good stuff. So welcome guys all the way here from Louisville to do a debt free scream. How much have you paid off about twenty nine thousand dollars? Cool. How long did that take thirteen months? Good and your range of income during that time as started about twenty five thousand and up to forty thousand. Wow. Over almost doubled your income. How'd you do that got married? Okay. Okay. So you started off doing this single? Yes. I did. And how long have you been married? Nine months. Oh, wow. Okay. So knocked it out that way. So what kind of debt was this? It was my vehicle and student loans. So Brandon brought no debt into the marriage. I didn't but brought an income to help you knock it out. Yeah. He was nice and let me put the wedding money towards it. Well, it's a good thing. So did you guys talk about all this before marriage is soon not really think it was since I had been working on this. So for so long by myself. I think he just kind of knew it was coming. I don't think choice. Okay. Right. This is the way it's going to be cool. So how's it feel now that you're debt free it? Feels awesome is a great start. Yeah. For real what started you on this process, thirty two months ago? So basically, I have this job that I love, but it doesn't make a lot of money, and I'm probably never gonna make a lot of money at this job. So I just started thinking about my future. And you know, we'll if I'm gonna continue to work at this place that I love and have this income that, you know, it's definitely livable. And I appreciate it. But it's never I'm never going to be making six figures. I just started to really think about my future. And I was just talking to my boss today. And I just said, you know, what are you doing? Retirement, and then she actually had taken P through her church. So she got me talking about it. And then she gifted me the total money makeover for Christmas one year. And just went on from there. Then here we go just like that very very cool. Well, now you've done it, you're debt free. What do you tell people to secret to getting out of debt is now that she did the budget just sticking to it and learning to say, no? And you may not have a lot of people have a lot of supporters. But or at least in our case we had a lot of supporters. But we didn't have anybody. Who was really gung ho as we were. So they didn't quite understand it. They were like, okay, that's fine. But do you tonight? Right. Yeah. Yeah. -cation when a lot we decided to skip our honeymoon until we could afford it. So there you go. Well now you can afford it. Yeah. Fifty thousand dollars a year almost and no payments in the world. So good place to be well done you guys very well done. Well, we've got a copy of Chris Hogan's every day millionaires for you because you're on the way to being one. I've already got that. Thank you so much for offering. No, we'll give you a copy of the legacy journey. Do you have that one? I do you got. Well, take take something for God's sake and give it regifter to somebody else. I'll be alright if you do that. So we just want to say, thank you. And we're proud of you well done very well done Brandon and Kelly law vote Kentucky twenty nine thousand dollars paid off in thirty two months making twenty five thousand forty five thousand count it down. Let's hear a debt free scream very to one. Well done. Very well done, and that's fabulous. Open phones at triple eight eight to five five two two five Brian is in Atlanta. Brian welcome to the Dave Ramsey show. Not good to talk to you. How can I help? All right. I have to push in I'll be fishing baby to about it end of the month and looking towards the future and being able to move up house already have a house about got about an equity, and we're just trying to figure out strategies to be able to. To the next thing next. Five years or so good. Good for you. Well, I mean, obviously above your emergency fund, baby. Step three, you could start saving torture down payment, depending on how how enthusiastic you are about doing that. You can either start your baby step four fifteen percent of your income going into retirement and save above that. Or you could tap the breaks on that. If you're going to do this house move pretty quick, you could tap the breaks on that for a couple of years, and then save up to move up in house at that point. Now, the trick is obviously you're going to sell the house, you're in take that equity, plus whatever other money, you save and make your move up and always at that point make sure your payment is no more than a fourth of your take-home pay on a fifteen year fixed rate Joshua's in Columbus, Indiana. Hi, joshua. How are you? Doing good about yourself. Dave better than I deserve. What's up? So I am wanting to go back to school, and I have a little bit of time to save up. But after doing the math, I feel like I might have to into my emergency fund. I was wanting your opinion on that just for living expenses to get by. You're not quit work. Actually, I will be able to leave to accelerate program. It'll take one year and my job will actually pay for it. And then take me back afterwards. You're drawing. Drawing up your job will pay for what it will pay for the schooling, but not the living expenses. Okay. And so you're not gonna work while you're in school. Awhile. I'm in the program. It's actually going to be eight hours a day five days a week because it sits and exceleron course, it's actually on a military base. And so besides just normal schoolwork. They actually have you work out with the military members. Who are they are on base? And then you do practice through teams with him and such. It's kind of a unique program is housing food packaged into the program. The housing. Yes. The food. No, I could get a part time job. I've served before. And I could work on Friday and Saturday during the night, but I'll be about forty minutes away. It's kind of secluded knows area-based. I'll be about forty minutes away. So you've you've crunch the numbers pretty carefully on this. What are you coming up short per month? In total all come up short about twenty five hundred dollars. My emergency fund right now is seven thousand and I might be able to cut that down a little bit. I based it off of working a certain amount of overtime. I might be able to exceed that. But I don't know what kind of expenses might come up until that time windows. The start it starts in August. Okay. So we've got about seven months. Took to be ready. And and the, you know to do more than you had thought you were going to do. Ok well here, here's the here's what ran through my mind when you first start asking the question asking the question. Okay. It sounds like you're single guy. Correct. How old? Twenty four. Okay. A five thousand dollar emergency fund might cer- Feis. Okay. Which coke which was answered the question overall, generally speaking when I hear this question on me tell you what pops in my head. So you can plant this in your spirit for for the future. And so that our listeners here the right answer going to school is not an emergency. So you don't use the emergency fund. That's what popped into my head. When you get ready to ask yourself. I'm gonna use x for the emergency fund. Ask yourself X as an emergency is if it's not then you would use the emergency fund now in your case, your dial this in you've got a pretty low risk environment for housing his furnish. You got a job lined up when you come back out your twenty four you're single five thousand dollar emergency funds. Probably a little slim is not the end of the world. So I probably would just rephrase it so that we can make it. Okay. And say we're gonna just your emergency fund. You don't need as much and oh that gives us some money to do this with. Oh. And you're gonna work like a crazy Mendel August. So hopefully, you never even have to do that. But generally speaking is couches on sale. Can I use my emergency fund? No, that's not an emergency. Glad you're here. Open phones at triple eight eight to five five two two five Stevens in Detroit. Hey, Steven, welcome to the Dave Ramsey show. Hey, what's up? Currently make six thousand dollars year. I have no debt I have a fully emergency fund and my wife's in school right now. And that's paid for by her parents, and we will be renting for the next approximately five years here in Michigan and eventually moving back to Kentucky. My question is for the next five years or a portion thereof. Should we be saving towards three d and just try to pay the cash for the house or should I be investing fifteen percent for the next year? Or so how old are you thirty? Okay. And what's your have? Sixty thousand dollars a year. You told me that I'm sorry. And then your wife will when she graduates and you move back to Kentucky. What do you project? Your household income might be at that time. Probably a hundred and fifty okay, you'd be thirty five so get thirty six in retirement already. Well, the basic concept is this the longer you stay out of retirement the harder to Bill wealth, but your income's going to go up dramatically. So whatever catch-up you would need to do you could do easily as long as you stay with the plan. And you don't just say, well, I'm not gonna invest in retirement now and later on I'm gonna find another reason not to invest for harming and then later on found another reason, you know, so. You know, you can stay out of it and just build a big Wapping down payment, which wouldn't be a bad thing at all. It'll help that house get paid off faster because the whole goal is between the paid off house and the 4._0._1._K investing from now until retirement thirty five years. That's what makes you wealthier those two things that's a primary data points of the millionaires that we studied paid for house and a big loaded up Roth IRA and Roth 4._0._1._K and that kind of stuff. And so the trick is just to make sure you keep yourself in the rhythm of doing all of that. And you don't lose focus and just wander off and never saved for retirement or wander off and never have a good down payment for the house or keep a mortgage the rest of your life for those kinds of things so long as you've got those things broken. It's not gonna matter which way you go. If you if you feel like you guys are pretty hyper disciplined people, I probably would use this five years with the lower income to just pile up a big Pala cash. For the house and start my 4._0._1._K and my Roth IRA's when I'm making Bank at thirty five after the move when the household income almost triples in this case. And so, you know, you'll be able to really loaded up. Again, the point is you don't wanna build a rhythm in your life series of behaviors that are gonna lead you anywhere except towards wealth. And so. And not investing is one of those bad behaviors, right? Not saving for down payment on a house would be a bad behavior. So that if you kinda sounds like you're a planner just listening to the way, you talk, and your the way you ask the question, and the fact that you are even asking the question, you're really thinking through from critical thinking standpoint, so you're probably going to do very well by just piling up cash for your down payment, then start your 4._0._1._K. I usually don't like people to start at that late five years long time to do baby. Step three b little too long. Really? But your case is different. Because you're you're planning a move very distinctly because you're there for education things are going to change your household income's going to shoot way up and so on Christie's whether in Fort Leavenworth, hi Christie. How are you? I'm good. How are you better than I deserve? What's up? Well, my husband, and I are a little bit torn on decision. And we were just wanting to give us some clarity. Currently, he's active duty military. We're stationed in Kansas. We are set to finish our baby step two in may. And then in Alaska or I'm sorry in June. We'll PCS to Alaska we have two cars right now. They're both beater cars. Each of them were about a thousand dollars MAC. One of them will stay here. We'll sell it. The other one we have to get ready to shit. If we decide to take it with us, the military will pay for a fish ship, it that part won't cost us, but we have like a huge crack in the windshield. And it has to be thoroughly detailed before they'll move overseas. And so there's just a lot to get ready to go. If we were to stay here. We wouldn't bother fixing it up. We just driving it and till we've worked through the baby sets and ready. Move and vehicle, but what we're trying to decide I know under normal circumstances. You wouldn't suggest we're putting more money into a vehicle than it's worth to repair it. But if we don't do that, we're worried about getting to Alaska and having no car and feeling pressured to buy something right away. Show both of them and just by car in about that you have two thousand dollars and by two thousand dollar car in Alaska. Definitely talked about. We just weren't sure. If getting after we feel pressured, and and not have anything would it be. We don't we'd never rented a car. Even I think maybe it was spend like fifteen years, we've rented a car would renting a car to get through until we find something cost a lot. Will you wouldn't wanna do that for six months, but you could do that for three weeks? Okay. I really appreciate it that some of the things we were talking around and that that just wouldn't go the trouble ship thousand dollar car. Great. I appreciate that. Kind of what we were wondering dump them both and put the cash in your pocket, and then make your move and so forth. So I thank you. Thank you for your service to the country. Thanks, thanks for the call. Wow. Open phones at triple eight eight to five five two two five. Justin is in Colorado Springs. Hi, justin. How are you? Good. There are though better than I deserve what's up? So recently. I'm Charlie active-duty military. I've been in about six years and everything really see an inheritance of fifty thousand from my grandma passed away about three months ago. I put put twenty five thousand into a CD going at two point seven five percent. And I'm keeping the other twenty five in my savings. So currently, I don't have any debt have a car paid off. I have a Roth IRA. About four hundred dollars a month in. I'm just curious what I should do with the money show. I keep it in CD. Should I wish I invested in? Stuff like that. How old are you? Twenty three. Okay. And are you a military lifer? Or one more year tour come to an end. We'll currently I'm at five years. I now six years I'll have to react. If I go for another four, and we'll stay from there. Okay. I'm just curious what to do with the rest of the money like understand. I'm just trying to think what you might be going to do with it in the next five years. What do you think you think is ring of thinking I use it for the next five years? I don't think so. Well, yeah, I recently moved to Colorado Springs. I just got here and I'm currently in a one bedroom apartment. I'm kind of nervous about buying a house. Just for the simple fact that I could move at any time. I would not. Because not because the Colorado Springs, but because you know, you can move at anytime. And if you buy a house don't keep it at least three years, you're probably going to lose money on the house after fees and everything on both ends, and you might get stuck with it. It might take six months to sell it after you leave and that really becomes a complete pain in the butt. Now say you keep where you are right now. What is your car worth? Trade in value pie round ten good car then. And what did you say? What did you say? Your income is. Probably around thirty thousand a year. So here's what I would do. I always think when I get money that there's three things you always do with money ought to give some save some and spend some okay. And it doesn't mean a lot of any of that. But. I think wise, I think you probably ought to do something fun. Nothing big thousand dollar two thousand dollars of it. Something fun. I think you might want to give some of it find somebody needs some help. And I would sit down with a Smartvestor pro with the rest of it. And I would invest it in some good growth stock mutual funds and just let it grow ten years from now you have a big pile of money. If you do that big pile like half million dollars. Probably so I would sit down and do that. And just forget you and let it grow and mutual funds. Get was click Smartvestor. Dave Ramsey dot com. Thanks for serving your country, Sarah. This is James Childs producer of the Dave Ramsey show. Did you know you can now listen to the Dave Ramsey show on Pandora and Spotify for all the ways to watch. And listen, check out our show page at daveramsey dot com slash show. Hey, guys, if you're looking for real world, leadership and business advice from the top minds in business. Check out our entreleadership podcast. Hey, folks can Coleman here with love to have you. Join us weekly as we dive into conversations with the top minds in leadership and take your business questions to help you grow yourself your team and your profits. Don't miss an episode subscribe to entree leadership where you listen to podcasts. Hey, it's James producer of the Dave Ramsey show. This episode is over but check the episode notes for links to products and services you've heard about during this episode. Thanks for listening.

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Ladies, Don't Chase a Boy With No Ring! (Hour 2)

The Dave Ramsey Show

40:18 min | 1 year ago

Ladies, Don't Chase a Boy With No Ring! (Hour 2)

"Live from the headquarters of Ramsey solutions. Broadcasting from the dollar car rental studios, it's the Dave Ramsey show. Where dad is dumb cash is king and the paid off home mortgage has taken the place of the w as the status symbol of choice. I am Dave Ramsey your host. This is your show. Thank you for. Joining us all about you. The phone number is triple eight eight to five five two two five that's triple eight eight to five five two two five Kelly starts off this hour in Charlottesville. Hi, kelly. How are you? Dave. I'm doing well. How are you? Thank you for taking my call. Sure. What's up in your world are so I'm faced with kind of a job transition decision here. So I worked on a grant program that's ending very soon. And I've got particularly to start a new job here in Charlottesville that would. Allow me to keep the vested portion of my 4._0._1._K. I if I stay in this new job I'll have been here for two years, which will allow me to keep the fully vested for one day. But I also have a long term relationship and my boyfriend lives two hours away. And he would like me to move to be closer to him. And look for jobs where he is. So I'm I'm based with the decision of staying here and potentially starting this new position or you know, continuing to be in this kind of long distance relationship older twenty seven. Well, I have two daughters. Approximately your age that are both married at this point and both have careers as well. So I mean, there's two or three ways to answer this question or look at it through different lenses. Where would you be moving Washington DC, okay? Which is a larger market than Charlottesville. Obviously. And so, you know, I guess the primary thing want to ask you is regardless of the boyfriend what's best for your career. Let's pretend like he's not in the picture. Well, I do think the job here is a is a good opportunity. And then there's the added the added benefit of getting it's about it'd be about eight thousand extra dollars for like my retirement, saving really not gonna make your long term life choices based on grand. I'm gonna say where do you wanna end up when you're forty six if you're twenty six twenty seven where do you wanna end up in which of these paths takes you there? And it's not vesting that takes you there. It's it's what is good for your career. What makes you come alive? What are you good at what can you plug into where you make the most money the eight thousand dollars? It's a false start. It's called in handcuffs. So it's a nice thing. And if we're going to do it, it's another reason to do it. But it's not the reason. So the driver is what is best for Kelly. That's the driver is. And so, you know, and you don't really have anything definite over in DC. You just have a large market there. And he wants you to come. Yes. And I did you stork there, and I could go back to my former employer I needed, and what would you make their I can make about sixty thousand new about fifty job that you're talking about moving into those probably fifty five to sixty. So why did you leave your former employer and leave DC? Well, I didn't love living there for one thing. Didn't love living there. Yeah. And I did a grad program. Okay. So maybe he needs to move to Charlottesville. That's that's that's on the table. He just started in new job there as well. Okay. Well, I guess you asking yourself your question. I mean, do you wanna live in DC? And you've already answered that question. Once answer is no, right. Right. Hm? Okay. I, you know. For me. I'm an old fashioned guy and an old guy. And so now, I'll take off all of that those hats, and I'll just put on the dad hat for a minute. Don't chase a boy with no ring. Right. Exactly. That's a dad talking. I mean, if he wants you over there, there's some blame that goes with it. Right. That's what I'm thinking do and I'm not I'm not trying to blackmail him into something. I'm just saying, you know, that makes you up here needy. And you're not Nettie, right? Right. So yeah, I think we're just continue that relationship conversation. And we don't want to force it artificially. I'm probably taking the job in Charlottesville and signing a long term contract. You're just you're just taking a new job. And if he decides to come to Charlottesville and become engaged that would work or if you became engaged in you decided you were gonna leave some period of time later and move towards DC that would work, but I'm not chasing him. When no ring. That's just the dad talking, but and several ladies in the lobby nodding right now. So. There you go. Just don't think about you know, talking to you. You're obviously intelligent articulate, you got a bright future. And he may be a wonderful guy. But at this stage of the game, there's not it's not time to do that yet Stephanie's with us in Park City Utah. Hi, stephanie. How you doing? Hi, dave. Well, thanks for taking my call. Sure. What's up? So my husband, and I are sitting in a house right now in Park City and the rebuilt two years ago, and we were sitting on three to four hundred thousand dollars of equity took out a he lack to get a to get some land for with part of that equity, but we still have three to four hundred thousand inequity, and we were wondering if we should sell our house now because to the markets, so strong, and or sit on that asset and turn into a rental property and get two thousand month, long term and have have. Where would you live if you sold it? So we would take that money, and we would probably go partly free with it gets two hundred thousand dollar mortgage versus right now, we're at four hundred and then reinvest the rest of the money in land masses and putting them so temporarily will probably get a rental condo in town. I would not do flips. While I'm renting I would want to own something somewhere. We all do from living. My husband's a software engineer. I stay home with the kids now. So you're not going to build on the land. We are building a house on the land. So just during during the building construction process. So the long term plan is to finish that construction sell this property and move into it. And how long will it take you to build up for pretty? Well, we can qualify for all but one hundred thousand that it would require to build it. If we could keep both properties that way, or we could we could get a rental history. Bill type over the course of six months or a year and the real estate of all is development real estate. The second. Most volatile real estate is resort real estate and Park City is way up our way down. And I was just in crested Butte. Krista Butte is way up for its way down all each property mountain property is way up white lake house. I got lake house. It's way up way down. And so I would not use that as my rental investment portfolio, especially when it's gonna comprise a large portion of your net worth. So if I'm in your shoes, I'm selling it, moving the condo rent while you get your property built on the land move onto the land. And then you're good. But yeah, I think I think that first part I didn't get the initial one. I start talking how it was gonna work. But yeah, I'm selling I wouldn't keep it as simply because of the volatility. This is the Dave Ramsey show. Listen up business leaders. Let's talk about my friends at ZipRecruiter. And how you need them to hire your rockstar team. They send your job to over one hundred of the web's leading job boards and then their powerful matching. Technology scans thousands of resumes to find people with the right experience and invites them to apply for your job. So you get qualified candidates fast. And right now, my listeners can try ZipRecruiter for free at ZipRecruiter dot com slash Dave. Alley is in Denver. Hey allie. Welcome to the Dave Ramsey show. Thank you. What's up? I am forty nine year old stayed home. While I have three kids at home. My husband passed away about a year and a half ago. Goodness. What happened? She has heart stopped in a sleep. Okay. My guest is twelve and when he graduates, I would like I see myself leaving the area moving to area. But meanwhile, having a hard time staying in this. I remember he's all and I'd like to move to a different house for the next five years. But I'm just wondering if that's the financially responsible thing to do. What is your homework? About five hundred. Okay, and Hauer. You your stay at home. Mom. So that must mean there was a large life insurance policy or what? Yes, very large. I have no debt. No mortgage have cars that are paid off. I have about nine hundred thousand and about fifty thousand in the Bank. Just you know that is. That is so wonderful. So glad to hear that part of the story. The the Partridge. In my situation will actually you know, I it. I appreciate your statement. You're blessed is what you are. I don't think look anything do with it. You guys were very intentional. And obviously he did a great job of making sure his family was taking care of. I don't have to work when we get survivor benefit from social security. So I just use that to keep us going touch any of the other money. So if you sold the home, it would bring five hundred thousand dollars cash in your hand, right? Right. Can you buy another home? That is what you're thinking about for five hundred thousand. Yes. Just a lateral move. Okay. I know there's expenses involved. You lose a little bit here or there, but you might move up or down or you might loot usual tiny bit of your investments to make up the difference or something. So you know, if you come out of pocket, fifty grand or something and make this move. You're still gonna get the money back because Denver's wonderful real estate market is you know, and you're gonna it's gonna go, you know, five years from now when you get ready to resell it you're gonna make money on it. Agreed. Yeah. Hopefully, yeah. You will. I really do. I mean Denver's done very very well unless the market just economics just crash or something. But I mean, it would be very unusual. I personally would be very comfortable investing. If I were you in a different home about the same price range, and as you said to kind of put some of those unpleasant memories behind you and being a different situation because it's it's gotta be weird to walk in there every day. Right. It's you can't look anywhere without. Yeah. And it's really really hard to live that way. Sure. Sure. Well, it's extending the grief. It's making the grief worse is what amounts to what you're saying for you. And probably the kids as well. So I'm moving I'm with you. Let's put up for sale move. So you don't think it'll affect our overall picture. We look, okay. I knew really still pictures very strong. Very proud of what he did. And how what you guys did to prepare for this unusual unusually early passing and so forth. Yeah. Definitely definitely we make the move. How long ago did you say he passed? Happy was forty eight. Okay. Yeah. Yeah. I the reason I ask is trying to make major decisions in the early days after someone passes because that's when we're the most torn up, you know, what I'm saying. Like, you can it's still hard to breathe, but you can breathe better than you could a year and a half ago. Yeah. And so that way, I know your heads pretty clear on this decision. But yeah, I'm doing it. If I'm you I'm with you get in touch with one of our endorsed local providers at daveramsey dot com, click them for real estate. They'll list it and get the most they can possibly get out of it for you. Tell them your whole story, and they'll help you find something and you make this move very very easy with a good professional in your corner. And I just check E L P at daveramsey dot com for real estate. And they'll help you walk right through it. I'm so sorry. You guys are facing this. But I also wanna tip my hat to him. And to you for the great job that you all did in preparing in that he had, you know, the right amount of life insurance to where this family is taking care of the story changes completely people if he had no life insurance. It would be a real mess. I mean, I it's hard the way it is very hard the way it is. But wow, that'd be a real mess Cynthia is in Fresno. Hi, cynthia. How are you? All right, fine. Thank you very much for taking my call by vitiate. It you could ease my mind. I have that a lot of fear going on right now. Okay. My weekends. We spoke with you before when I I did hear that I inherited some money from my father, and I had physical challenges when he passed away on with lady disability. So I was I went from the bottom having just about nothing to inheriting over a million dollars. And so I took that you told me at the time I was less than we were. So right. I took the one point one million that you suggest I do guys if it's in a financial advisor today. But the thing I didn't do. And I think I before I soak with us I want him, and I did not get to go through your Smartvestor pros. Which was number one mistake. I should've done done that. And I'd like to do that at this point, my fear is just moving the money. I it was the scariest thing I ever did in my life. When I pulled out that kind of money in cashier's, check, one point one million and rove it over to my investor at gave it to him. It was just like the scary thing I've ever done other than hand my child someone before she can talk the baby is, you know, at the daycare or something it was just like so petrifying to me. I scared of you know, people Deslys stealing things like that. And it's because it's all the money in the world, if I lost it, I be you know, out so what and you know. Your financial advisor what? Told me at the time, you know, that the accounts at the insurance just like the Bank, and you can check it all you online things like that. Invest in. That's the thing. I this is part of the reason I wanna leave him. I I do discuss these people and talk them like slick Sers is it usually call him. He's not really good about teaching me what he's doing. I just know he's putting certain amount yet. And I'm getting a certain of that out. That I'm not being hot like, I should be like, well, let's while you're afraid because you don't know what the flips going on right into pull the money out and gives us somebody new steering me to wouldn't scare you. If you were making the decision on what the money was going in. Because you understood what the money was going in that causes fear drop you need to not put money in something. You don't understand or know what's going on with? That's how people lose money, right? This. Thing to spend, and you wouldn't pull up along side somebody some teenager at the high school that you'd never met in your life and let him babysit for your kid. You would check them out. I want to know what was going on. You'd wanna understand? You'd wanna give them instructions on how to operate your kid. And that's why I wanna leave him so leave. Yeah. Yeah. Go go sit down with a Smartvestor pro and get somebody that has heart of a teacher. But but don't put money something. Because Smartvestor pro says do it. You're still going to be afraid don't do that. Don't put money in something. You don't understand? Don't know what it is. It's not the person you're trusting. You're the person that I want you to trust. I want you to trust you. And if you don't understand it, then then just leave the money in stupid CD until you understand it takes six months and study and learn and grow and meet with a Smartvestor pro once a month and take a class from or whatever to you understand how mutual fund and works how to look at the track record on a Mutua. Will fund don't put money in a mutual fund. Don't put money and stuff that you don't understand. That's how people lose their money. And if somebody's not willing to teach you or not able to teach you you have the wrong person to help you with your investing as their job is not to do it for you. Their job is to show you what to do. And you make the choice that way. There's no fear. You're freaked out. You should be freaked out. You don't know what's going on. That's the thing. This is the Dave Ramsey show. Christians have an affordable incredible way to meet their overwhelming healthcare costs. It's Christian healthcare ministries, the original health cost sharing ministry. A Better Business Bureau accredited organization C H members share to pay each other's medical bills. It's not insurance. It's Christians financially and spiritually supporting each other. It's what see has done for over thirty five years. Learn more at C H ministries dot org. That's the H ministries dot org. Christian healthcare ministries is a proud sponsor of Dave Ramsey live events. The IRS ninety percent of Americans have tax situations that are complex enough to need a tax professional. Here's a few things. People don't realize we'll add hours to your filing. If you bought or sold off home if you've got student loan debt that you're paying on. If you got married or had a baby or had other major life changes. Whether it's starting a business working side job like Uber or anything else you've done to make some extra money. Taxes can be more complicated unless you've got a degree. And even if you do it unless it's your job to stay up with tax code juke could probably mess up filing on your own. I don't find my own and people who file with a pro not only save hours. They get backing average of eight hundred dollars more than people that use tax off wear, and I don't know where you are. But eight hundred dollars where I come from a lot of money. Could you do with that pay off a credit card finished kick and Sallie Mae out of the house? I don't know finish up your emergency fund. Check daveramsey dot com E L P for taxes E L P for taxes. And we have CPA's enrolled agents that we have vetted that do a great job. And we'll help you get ready for your taxes this year and save you some serious money carts weather in Louisiana. Hi, kurt. How are you? I'm always good. Dave, thanks for taking my call chirp. How can I help so me and my wife on thirty one. She's went on about thirty. We're going through dead process right now. We're on step two. We're actually going to be starting FPU tomorrow evening about that. Yes. I know for a very much looking forward to that. We're action both in about eighteen to twenty four months being that for except for the house. Good. So wanna good track there? My question for you is we have three kids that we actually home school eight six and four two girls one boy. And my question for you is you know, during this process with them. What is your advice? What can you recommend for us? You know, going through on them, you know, wise money to they don't get where we are. We have some of the Dave Ramsey stuff for kids like the the books with. Do near in the venture the dollar Bill that they love those books, you know, down with them when we're laying out the dead. And you know, they they see, you know, no, not hitting what we may. Come. We have kids are all in on the tour that they see. So what's your recommendations on something that we can use for them? Okay. Well, number one. I don't want a four year old to be scared about your situation. So whatever situation you cover you don't want them to feel like or even any of ages. We don't want him to feel like that that like we're going to be homeless or you know, some. So this is just a mess that we have made, and we're cleaning up our mess. Like when you make a mission your room, I met you clean up your room. It's kind of that's actually exactly how we went into them that, you know, this is just something they knew we had way too much fun way too early. Now, we have to kind of make up for that. And we've actually got them. You know on them eight staying they actually pull ties together on their own. So you know, it's it's promising 'cause see that. Yeah. No. Then the next thing is that since mom and dad are learning these lessons. We also want to make sure that we teach you guys about this. And there's really four things that you teach a kid about money one is how to work because that's where money comes from an age appropriately. We're not sending the four year old into the salt mines, right, but they do some work. And then once they earn some money we didn't put ours on allowance on lower. We put them on commission. Right allowance feels like welfare, I don't wanna do welfare. Okay. I want them on commission work get paid don't work. Don't get paid. And so and then once they earn some money from having done a chore than we put that money in their hands. Then we have three things we wanna teach them to do with that money. One. Is we want them to save some of it too? Is we want them to spend some of it wisely and three we want them to give some of it. We're christians. So that meant at our place that you were taking some of the money that you earned in quotes to the church as we go. You know, go to children's church on Sunday morning, or whatever that kind of thing. All right. And so and you always have to be doing all four first thing I'm going to do like any other behavior with a kid. I'm going to encourage you and show you why ultimately though, you're going to do it. Right. You're going to brush your teeth. So you'll have some you're going to do your homework. So you graduate from school? First thing I'm going to encourage you and show, you why do those things, but at the end of the day, if you just refuse because you don't get the why I'm your my job is your dad is just make you do it. It's a life skill brushing your teeth studying to get your grades and handling money or life skills learning to work or life skills that that's my job as the dad to make sure you have those things your job is mom to make sure they have those things as they leave. It's called parenting. And so, you know, the way we've taken the stuff out of the junior books is we have financial peace junior. Do you guys have that yet? No. And I'll send you one of those. It's got dry race board for the refrigerator where you right their chores on it and their name. And then as they do the chores you check them off. And that says they get paid if they don't do the chore. They don't get paid. Ultimately, they're going to do the chore. I'm going to try to make it fun and encouraging and rewarding. But I mean, not feeding the dog if the dog being fed is the chore, and I have to feed the dog, ultimately a one or two times. We'll talk about it and not pay you and let you in the lesson. But at the end of the day. You're going to do this because it's my job to give you this life scale, and it's age appropriate. The older they are the more intense and detailed. You can get the four year olds just all fun and bananas. It's fun. You know deal there. But by the time, they're fourteen they need to have a clue and so financial juniors a box of teaching age. It has the envelope system in it with three things give save spend. It has the dry race board for the refrigerator bunch of other goodies in their show to get mom and dad, tool stickers all kinds of stuff to get moment. At tools to teach their kids how to handle money ages whatever birth whenever they wanna start up to about twelve. And after twelve it's a different kind of game playing. You're starting to deal with teenagers at that point. But hold on have Kelly Shinji one of those out as our gift and help you guys continue this part of changing your family tree bobby's weather's in Abilene, Texas. I Bob how are you? I'm doing fantastic, thanks for taking my call. Sure. Man. What's up? So I am a student, and I am studying accounting, and finance, and we had a my my parents are big fans of your show, by the way. And so they, you know, brought me up and my first car I paid in cash, and they taught me the importance of never going into debt and thank goodness for that. You know, they're fantastic. And in one of my classes, we had a banker come in and started talking about the importance of building credit, and I realized I paid for you know, my my truck in cash, and you know, I've never taken on any. I'm not really building any credit, and I use that debit card. You think that I should be building credit at all or what would be the prettiest building credit? What would you need credit for? So I am since I'm accounting and finance. I do wanna go into business for myself and. So I may wanna pull, you know, a Bank loan to start the business, my dad's a dentist, and he pulled alone to start his so I'm kind of learning from him on, you know, just how starting you know, going into business for yourself works. It doesn't mean that you have to pull alone. I started this business with no one, and I didn't have any money either on a card table my living room. It's called organic cashflow. Meaning you make some money and some of the money you make you put back in the business that you eat, and then you make some more money, and you put some money back in the business. And I started that twenty five years ago. Now, we have seven hundred team members a major national brand. And I never bothered a dime. And so no, I don't think you should build credit because I don't think you should go in debt after. Like you've been very wise to this point. And I think the dark side is luring you stay away from the dark side called bankers. This is the Dave Ramsey show. Andrew is in Los Angeles. I Andrew welcome to the Dave Ramsey show. How you doing? Deserve. What's up, my wife, and I just finished baby. Step three, b and ready for step four and federal and state tax Bill just came in about three thousand dollars. So I keep recommending a five thousand dollar stuff contribution to reduce our tax Bill. So if we were to do this and roll it in Iran future would be basically paint this similar taxes. It's fine. So you have the ability to do is say up, obviously. Yeah. Okay. And you got the five thousand dollars over and above your emergency fund. Yes, we do. Okay. There's nothing wrong with that the. I'm always going to move towards a Roth more than I am a traditional investment a pretext investment because the Roth is going to grow tax free. And of course, if your business grows, and you're hiring people soon, you won't be able to do as Samp. I won't make sense to do a step right because any employees that have been with you more than three of the last five years have to have the same percentage put into there's that you put in percentage of yours. So but for this year, if you wanna do that, that's fine. I did a step early in this business, and then I just rolled into an IRA a traditional IRA, and I rolled all that traditional into Roth a few years ago as well. So that it was all growing from that point tax free. And I just wrote a check separately for the tax Bill, which has the same fact of having a. In additional investment is really what it is. But for this year. That's fine. The thing that the reason I'm stammering and stuttering around. I don't want you to long-term make your investment decisions to save on this year's tax Bill. Right. And that's not our goal. But you know, because we have opportunity we've thought it might be. Yeah. One time hit the ground. Yeah. Yeah. But year in year out if your guys if his if the way he decides how you invest is. He's trying to save you on this year's tax Bill. That's probably not gonna take you where you wanna go long term where you wanna go is what's going to put me in the best position at net of taxes. And the Roth products are are the Roth qualifications are going to put you there in a lot better, shape and long-term, but this one I probably would do it. Yeah. I don't I don't. I don't dispute this one move James's. Whether it's in New York hot James. How are you? Hi, dave. Thanks for taking my call. Sure. What's up? I have a question. I know typically you say say twenty percent down payment on a home. But I'm prior service person. I was thinking of using the the homeowner, and I've heard that it doesn't have PM. I and you can at least put down like eight percent. And I was wondering what what your take on? That would be you can put down five percent on Fannie Mae conventional you can get into a mortgage without putting down a full twenty percent. The beauty of putting down. The twenty percent is to avoid the PM VA does have a funding fee, and they, you know, basically ends up net net net being the most expensive kind of loan unless you're unless you're a disabled veteran are you disabled? No, I'm not to say, if you're not disabled, then it's way, the funding fees and some of the other stuff, but it's not. It's a they're not good loans. You're better off if you're going to put down eight percent to traditional Fannie Mae could conventional loan and just put eight percent down you'd get a ninety five percent loan there, and and your other closing costs, and you're gonna end up less interest rate, less fees all the way around than the VA loan between VA FHA and conventional VA is the most expensive of the three Nathan is whether it's in Salt Lake City. Hi, nathan. How are you doing great? Dave. Thanks for taking my call. Sure. What's up? Hey. So I'm on baby step four, and I really enjoy your show. What about my situation, I moved to Utah back in June from California, and I studied exercise wellness in my undergraduate education, and currently I work in a job that not my field right now in here in Utah, very competitive market, or whatever. Wanna go into health coaching? So it's I don't like my job right now and fist in very difficult to find work. But on the other side, I have a personal train background and trying to make sure I all the baby steps, and I'm going to get married. So my question is what should I focus on in my job? My job search fine. It's a health coach or try to start them in the side as a personal trainer. What takes you where you wanna be ten years from now? Well, I like to be, you know, work as a health coach for insurance company that has benefits and secure income that you know, I can be a great run ploy in the marketplace. And so that's why I like to be secure job that can how how does being a personal trainer and building a book of clients on the side help you get that. Well, it's something that gets up and com. You know, I'm doing merit in June. And I'm just trying to find things with my income. But the job have right now is not paying enough in just you know, I I have an emergency fund. But I'm just it's just trying to find ways. What should I focus more supplementing your income, not a bad thing at all? But that wasn't what we started the conversation with we started the conversation with you didn't like your job, and it was too competitive in the marketplace to land something in your degree field that you want right now. And so I'm going to go do this. So if you wanna do it to supplement your income. That's fine. I'm not sure, and it is at least in the general field or the general category of your field, which is not a bad thing. But but the thing I don't want you to do is to get sidetracked somewhere along the lines and not land the actual position that you're looking for. So what's the actual position? I'm looking for and what are some steps? I can take to get the. That position nailed down. And if that's a two year plan to get that position nail down. That's fun. In the meantime, you supplement your income doing some personal training. That's fine. I got no issue with that. But let's not get sidetracked and ended up with this super successful big personal training operation. And then that you look up, and you go gosh newness ten years. I'm not I'm stuck. I can't do it. I don't I don't may not get out. I've got golden handcuffs now. And so you you climb the ladder of success only to find it's leaning against the wrong wall. That's what I'm talking about. So let's make sure that whatever steps you're taking are always taking you wear. You want to end up if this is simply some part time income no troubles. Love it. Go BP. Go be a personal trainer. Do that -absolutely? No issue at all. But. I would not. I would just be careful that you're with your career choices. You're always looking on where you're going long-term where am I going long-term where am I going long-term too many people accidentally fall into just job and they work at for years, and they look up and realize their miserable. And you don't wanna go that your job needs to be like your money your career needs to be like your money should be an intentional an series of intentional acts. I'm gonna take this action and this action in this action this action, and that's the direction to go. Dab is on Facebook. Do I need mortgage protection insurance? If I already have life insurance now mortgage protection insurances mortgage life mortgage. Life insurance is rip off it's twenty times more expensive than d'arme. So you never buy mortgage life insurance on the less. You're uninsurable. If you're uninsurable. It's a way to get your mortgage at least paid off if you die. So if you've got health problems have had health problems, and you can't get life insurance. Most mortgage life is what's called guaranteed issue. Which means they're going to issue it, regardless of your medical, but they charge you twenty times more than traditional term. So you've got two hundred thousand dollar mortgage. You're basically buying two thousand dollars of term insurance, and you're paying about twenty times more than you would pay for traditional term insurance of two hundred thousand but again, it's guaranteed issue. So they're going to ride it for six sick people. They're gonna ride it for everybody or people that have had. Illness in the past I kinda, but otherwise, it's just a gimmick. There's no other use for it always just by term insurance. Go to zanderinsurance dot com and talk to Jeff Sanders team over there. They'll help you absolutely incredible. Shop among a bunch of different companies get you the best price need about ten twelve times your income on you on fifteen to twenty year level term insurance. And that'll set you. Question. Thank you for joining us. This is the debris shop. Hey, it's Kelly says he producer and phone screener for the Dave Ramsey show. If you'd like to be your debt free scream live on the show. Make sure you Bizet daveramsey dot com slash so it registered we would love for you to come to Nashville. Tell your story. Hey, guys, if you're looking for real world, leadership and business advice from the top minds in business. Check out our entreleadership podcast. Hey, folks, Ken Coleman. Here would love to have you. Join us weekly as we dive into conversations with the top minds in leadership and take your business questions to help you grow yourself your team and your profits. Don't miss an episode subscribe to entree leadership where you listen to podcasts. Hey, it's James producer of the Dave Ramsey show. This episode is over but check the episode notes for links to products and services you've heard about during this episode. Thanks for listening.

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There's No Shame in Making Money (Hour 3)

The Dave Ramsey Show

40:20 min | 1 year ago

There's No Shame in Making Money (Hour 3)

"Live from the headquarters of Ramsey solutions. Broadcasting from the dollar car rental studios. It's the Dave Ramsey show. For debt is dumb, cash is king and the paid off home mortgage has taken the place of the BMW as the status symbol of children's. I'm Dave Ramsey your host. Thank you for joining us. Open phones at triple eight eight to five five two two five Malcolm is in Austin, Texas. Hey, Malcolm, welcome to the Dave Ramsey show. Hey, dave. Thanks so much for taking my call been a long time fan. He started doing the video into thirteen. I graduated college my wife, and I got married and then watching and listening ever since thanks so much for your material. Thank you. Yeah. So I'm running into a good predicament. But one that I kinda grew up listening to days, and and kind of run into a new situation here also short graduated with my MBA last year on path to pay off all my student loans by the end of the year. Great, but it's tax. It's texted today. And I'm trying to figure out we're going to be with our conjoined income. We're gonna be over the limit or the IRA so trying to figure out if I should hold back and put money towards the cash than sitting on if I should put that money towards my student loans are put it towards contributing to my Ray and kinda just moving forward with the plan still on or focus on a 4._0._1._K later throughout the business that I now started out Atlantic. Okay. Well, you've never heard it me. Tell anyone do an IRA while they have student loan debt here. Ev you know, you're having not just worried about that cut off kind of as move forward. An unfortunate situation. There's not a cut off. You're gonna may household income making over two hundred K that your problem. Yeah. We went back to a Roth. Do you not know what a backdoor Roth is? No, not not as familiar about that. Okay. Number one, regardless of if there's a cutoff or not there's other ways to invest, and you and I would stick with the baby steps, and I would pay off your student loans, which is what you need to be doing now side from that the back door Roth when you get ready to do it, which is not this year. But if you're making over two hundred I do a backdoor Roth them considerably more than two hundred and all you do is you open an after-tax IRA and thirty seconds later, you roll it to Roth IRA. Okay. There is no limitation on rollovers on income, and there's no limitation on after opening after-tax IRA's. So you're loud to do all that. I do one. My wife does when we do every year and have for many many years someday. They'll stop that loophole possibly are you working here redoing. Yes. And my wife works as a W two and actually started a an escort and own small businesses and central and surrounding area, Texas. So you've got the on either do a simple for a one K or a semi the one. Yeah. And that's what I was considering opening up a full on K for this year. I was trying to capitalize this year. Yeah. Not this year. No, you're okay. Not this. You're not doing any investing. You have student loan debt. I thought you said you're listen to me for years new head. Seventy five I'm done. I'll be done in the next like eight months often you. Often. Rage to you next year. You'll have your emergency fund in place, and you'll be ready to go. And you got plenty of time. You're going to be very wealthy you make a lot of money and don't over think this stuff lay the foundation before you put the roof home, sir. Okay. Thanks for the call open phones at triple eight eight to five five two. Cole is in Dallas, Nicole, welcome to the Dave Ramsey show. Push the button dragon. I think I missed it up the coal are you there? I must have missed it up. You check on her and see if I'm Mr. up. All right. Molly is in Colorado Springs. Hey, molly. How are you? I am wonderful. How are you much better than I deserve? How can I help? Actually. So I have a question about how to get my husband on board with this. Where about seventy thousand in debt? He's been gracious and let me focus on school for the last year. I'm graduating this may with two bachelor's degrees. He makes about forty seven five before taxes per year. I'm currently not making anything. But in may, I will be will be getting a job for the forest service and bringing in about twenty thousand to start just kind of a internship type thing or. Or two bachelor's degrees. Because I need the field school to work towards a PHD. Oh, okay. For four. What do you wanna PHD? For our allergy. So I can do international work. Okay. All right. So we've been doing decent, I suppose I had a car loan at one point. I got paid off in two years because I started listening to listening to you very newly. And so I realized that was done. So I just knocked out 'cause we still need at the 'cause we have no car that we have a little bit on credit cards and quite a bit in school owns between his and a little bit on mine. My question is is that he's he's very down on himself currently on having a hard time getting him on board with the budget and having confidence in our ability to get through this. So I just kinda need you on bison. How I can get him to go with the. So he he generally can't visualize winning anything right now, not really he wanted down about it. I think he's feeling a little overwhelmed with the amount of debt that we have. If once I start working, I can we can get out of this in about two years if we really stick to it. Why can't see that? If you lay out the mount. I don't think he's got the the confidence. It's it's a five second math conversation. It's not it's not even his confidence is not needed. All he's got to go to work if he can get up and go to work every day and doesn't get fired. And then you go make that it's a math thing you are debt free in two years. Right. And you can see that. And I can see that. I mean, you don't have to have confidence to see that that then could give you confidence you could give you hope where you may be felt trapped or overwhelmed when you do the math sometimes it, it's a way into hope when you were hopeless. Sometimes math or help you do that. But I think what's happened is. I don't think you guys have sat down and done math. I think you've discussed concepts. And you know, what else I think is threatening me throw this out there and see what you think I could be wrong. But I think he thinks that he's going to spend the rest of his life paying for you to go to school the rest of your life. No, fortunately, I've had other ships that got me through the my school loans are from before I had the scholarships in my associates degree level. Tripped in the cycle for the next ten years while you work on your PHD to be an international art, y'all. No, no, no, no, no. I've been very fortunate to be able to work way through my upper level degrees. I I asked if you're you're not running an income though worth crap while you're doing all this stuff. Right. She feel like your family is trapped because of all of that. That could be I haven't really talked to him about that. I'm not sure I'm just guessing there's it sounds like you're on a really long path to get to an income. It's okay. But if that's dealing with him having hope issues than we gotta get into that. I think you guys need to sit down and actually with a pencil and paper do some math. And I think you need to have some conversations about your career choices and make sure he's onboard. He's on board. I'm on board. I don't care. This is the Dave Ramsey show. Win in business by choosing the right software with over seven hundred specific categories of software to choose from. Capterra is the leading free online resource to find the best software solution for your company. They have hundreds of thousands of software reviews to make it easy and fast to make an informed decision. So join the millions of people who use capterra each month. Visit capterra dot com slash Dave. That's capterra C A P T E R R, A dot com slash Dave. Thanks for joining us, America. Glad you're here. Open phones at triple eight eight to five five two two five with over fifteen million of you listening this week and every week, we know how valuable the stories on the show are in giving you the motivation the inspiration on your financial journey, and we want you to be able to get that motivation whenever you need it. So give this a try. You can find the Dave Ramsey show on Amazon, Alexa, or Google home. Just say Alexa, or you say. Okay. Google play the Dave Ramsey show. It's that easy. And you can listen to the entire Ramsey network of shows, which includes Chris HOGAN show, Ken Coleman show on careers, the entree leadership podcast, Rachel Cruze business. Boutique all on your smart speaker. Ed, if you want more formation, just go to daveramsey dot com slash smart speaker. But if you've got an Alexa, and you've got the Amazon, Alexa or the Google home. You say Alexa, play the Dave Ramsey show. And it will or okay, Google play the Dave Ramsey show. And it will there you go. So pretty cool stuff. Now. Most of you have one of our six hundred four radio stations in your area, and you can tune in that way, and we would love you for you to do that. That's our primary way of reaching you. We also, of course, have about six million of you. Joining us on our podcast every day. And this is yet another way that you can tap into that. It was all set up with the guys over Google and the guys over it, Amazon or the gals or whoever does that kind of stuff, and that's pretty cool. I. Those. Yeah. Yeah. So if the some of you Alexa, like runs your whole life or Google, you know, the the Google home run your life. So you do I mean, I know people have their house lights on it and everything they turn on kitchen lights, and it goes bus amazing. It's crazy. So I can't even get my smartphone home. So but anyway, the rest of you are smarter than me. And so all you have to do is just say it. Alexa, play the Dave Ramsey show. Hey, we're cutting edge. That's all I can say Nicole is with us in Dallas, Texas. Hi, nicole. How are you? Awesome. Her you better than I deserve. What's up? Okay mastermind. I was too. I. And we had on your old friend, and we receive work workman's comp insurance. And I don't leave this tent for my household any kind, and I need to know how to invest that. So it's not a taxable event for him. Or I would he turns nineteen he'll be nineteen when he graduates from high school in public school. And I know how to make that non-taxable then. When it was paid to you. It was either taxable or it wasn't. It was on Paxil because it's insurance premium being paid out through the state of Texas. Okay. But then and so the only thing that will be taxable in the future would be the growth on the investment. And there are there are no there are no investments that grow completely tax free except Roth IRAs now how your son is nine nine, and you are working now and are providing for the family without the need for this money crack, what do you do transportation broker? Okay. And what do you make? I only draw a forty five thousand dollar salary out of my company year. How old was your husband? Forty one. I'm so sorry. So construction accident or something else construction accident devastating? Well, and you got your budget lined up and you're making it on forty five. Yeah. We we also have other non tax on. We have SSI coming in my son from my husband, ROY when my husband paid into SSI. We also have our life insurance benefit how much much we're your life insurance benefits a lot. Well, made a million two million. Not quite a okay good. Okay. And how much were the other checks on the? I also receive nineteen hundred dollars a month on workman's comp insurance because of his mis mis checks for hollow. Till I die. Eighty to ninety five. Okay. And how much did you get with a lump sum on workers comp? There was no lump sum payment. Trying to figure out what to do with. Yes. Oh, I see. Okay. All right. Well, here's the thing. Let me do this. I wanna set you up with two things one. Is we have coaches that have been trained by us that don't sell anything except advice, and I'm gonna I'm gonna pay for you to meet with coach, no cost. Okay. And then you've been a horrible time. And we wanna be be there and be helping helpful to you. I'm I'm a Christian in the bible says to take care of widows. And so that's what I'm gonna do. Okay. Second thing is this. I want you to sit down with one of our Smartvestor pros. Also Kelly's going to hook you up with both of them and help you get that done. Now, the Smartvestor pros are mutual fund brokers. They do get paid when you invest. Okay. But their job is to teach you about investing, and how to take some of this money and move it towards mutual funds. Do you guys have any debt? I. News has been passed away. I I personally own twelve thousand dollars in consumer debt, but that'll be paid off in seven months because I have to feel the pain of my taking me taking my stupid Bill. Maybe I'm not sure I think you've felt enough pain for the year. I think you pay it off. And then you stop forever. We're also going to put you in financial patient versity, which is our course on how to handle money. And so that will get rid of the stupid pills. We get them out of your cabinet. It's one of the things we do come to your house and take stupid pills out of your cabinet. I used to have a whole case of them. So I know what they look what. Anyway. So yeah, you need to go into pay that off. But I'll walk you through our team walk you through how to do all that properly. So that you don't go. You don't wanna go back in goofing up. And what you did was you just Medicated some of your grief, and that just makes you a human. Okay. I I wouldn't even call a stupid. I would just call you hurting. And you just you know, you made a bad decision while you were hurting that's different than just being self centered and spoiled brat, okay? So we'll cut your little slack. You've been through a tough time. All right. So then you're going to sit down with a Smartvestor pro. And they're going to teach you about mutual fund investing, and what you can do a Roth IRA that much will grow tax free. But that's only six thousand dollars a year. Everything else will grow tax deferred. And there's a lot of stuff you can do to keep from paying taxes on it now. But when you take it out it will be taxed, but if you do it properly it will be taxed a capital gains rate, not at an ordinary income, right? Which would only fifteen percent for you or your son. So there's a lot of stuff you can do there. That'll get you going in the right direction, and I'll put you on hold and Kelly pickup, and we're gonna do those three things financial versity, coach and Smartvestor pro get her in with all of them and get that going, and let's let's figure out what we can do to help you and your nine year old, son. You're tough lady turn in the corner. Already. You've already you've already worked your way through a whole bunch of this stuff and help you with the polishing of a little bit. So that you can have a little bit more confidence to go with your cuffing us. So so sorry for what you've been through. You know, this is the Dave Ramsey show. I get asked all the time. Do I need life insurance? Listen, the point of life insurance is to replace your income for someone who counts on it. So if you have a spouse, if you have kids, yes, you need term life insurance and the best place, I know to get it is Zander dot com. Zander insurance is where I get all my insurance. And it's where I've been sending my listeners for over twenty years. You can get a quote in a matter of seconds. It's not expensive. It's not complicated. And you need to do this now Zander dot com. In the lobby of Ramsey solutions. Elvis and Evita are where the guys are you? Dave, welcome. Where do you guys left? So we live in Huntsville, Alabama. Oh, just down the road. Welcome good. All the way up here to do a debt free scream how much have you paid off? So we paid off fifty three thousand dollars and also on top of that we had another seven thousand dollars a week cash flowed my school and trip to Ukraine, which went to see my family. That's where I'm from that. How long did this take you? It took us about seventeen month. Okay. And your range of income during that time. So when we started we made about ninety four thousand and this year, we'll make about one hundred ten thousand. Okay. Excellent. What are you guys do for a living? I'm a engine systems engineer, and I work at the Bank as the financial assistant perfect. Very good. Okay. What kind of debt was the fifty three thousand? It was mostly student loans. Mine forty-one thousand student loans and twelve thousand nine a car. Okay. Cool. How long have you been married? It's going to be two years in June fourth. Okay. So this immediately after you got married you started on this this story. How'd that all unfold? So it actually started earlier than that about ten years ago. I have two older sisters who are both married with beautiful families. And they learned about you then and they dragged me kicking and screaming to financial peace university. The local church and made me go through it. And it all went into one year and out the other. I think it was nineteen. Okay. Yeah. Yeah. Okay. Yeah. Of course, I was a smarter person in the world. Of course. I was considerably mortar then so, but I knew of you and fast forward years later, and I meet the love of my life, and we're engaged to be married. It's about six months to go to the wedding. And I get a job offer to move thousand miles from where our family was in Minnesota don's Ville, right? And so we talked and we agreed. And I made the move ahead of time. She stayed in Minnesota to finish planning the wedding. And we. I started trying to budget the move, you know, finishing off budgeting for the wedding. We were paying for it ourselves for the most part the honeymoon. And then moving our whole family down. Talla Bama is really digging into the spreadsheets like for the first time. And I looked at how much you know, how big a chunk of our money was going to be going towards debt. And I realized like this is a lot of money. This is really ridiculous. We're going to really do this for ten years or however long the student loans were and then a car loan. And so I said, you know, what would happen if we do like that one weird. Dave Ramsey guide said long ago. How long will that take? Veneer. And because I'm engineer a numbers guy. I was really blown away. It was like a year and a half. But numbers is what it would take. And you know, we talked about. Hey, that's totally worth it. Let's go through financial university and get ourselves on track. And they made me think we we started out, and we had you know, we made budgets together. And we went to financial peace university right before a wedding actually again later on after we were married for once. Good to really drive it home, and we're making budgets together. And at first we budgeted things like blow money and extra money for restaurants extra money for entertainment. And as we started paying off the debt, and the the sort of snowball turned over and picked up steam, we got really really excited at the prospect of getting out of debt so quickly, and we just cut all that extra stuff out. And so we we were living on, you know. A minimal budget throwing everything we could at the debt and for fun. We would we had a subscription to Netflix loved going on walks. Right. That's what we did for a year and a half. And we also got extra jobs during that time. Very cool. So what do you tell people the key to getting out of debt is you paid off fifty three thousand seventeen months or success? What's the key? I think for me the most important was is to see the light at the end of the tunnel to find inspiration from other people too. And the main thing we did is when we were cleaning offices in the evenings. Which was really frustrating to go after refers job to go to the second. So we were listening to your podcasts a lot. And it's it really helps seeing other people getting out of dead which made us thing that hey, we can totally do this. If people do this. So just to get an expiration. And then also to find a partner -bility partners, very important. And there's very important verse in the bible that I actually wrote down because I'm gonna forget it. That's from Ecclesiastes chapter four nine two are better than one because they have a good return for their labor. If either of them falls down one can help the other up, and you definitely do full down during this journey because there's a lot of impatient. A lot of great great food around. You just want to go out and eat you don't wanna cook and stuff like that. So we were there for each other. So that was really important for us. And you like you should you plug back into you clash and some people in they're cheering you too. There was that we also started leading classes. Oh, wow. Record enough you class. Oh, thank you. And your sisters are off in the background going. He finally. No idea. They were before. So. Right. And they're another thing. I wasn't wanted to match is do not be afraid to take any extra jobs, or maybe some jobs that people are not willing to take for us to take a cleaning job was not like some people were like very skeptic about it, the special people who were hiring us because they got to know that he's in Geneva's like a joke. Are you cleaning offices at night? So we just took it and like which is decided there's no shame in making money. Making. Friends were giving me a lot of crap about right? Scientists by day office cleaner by night. Well, why not? Yeah. Well, and Vida does the way you were brought up you should you're from the Ukraine. Right. That change your perspective on that kind of thing. We just did whatever need to do. We can do it for short period of time. And it'll be okay, right. Honestly, you I didn't have any debt my family didn't so having it was really bad. Willing to do anything to get out. I grew up my family lives on the farm. So we were like doing a lot of labor so is not afraid of any type of job. So it's like, oh, yeah. Totally can do this. It's fine. Yeah. That is so cool. You guys are neat. Well, done proud of you. We've got a copy of Chris Hogan's book for you every day millionaires. How often airy people became built extraordinary wealth and became millionaires. And of course, you can too and you're going to that's what you're trying. You're willing to do what it takes to win seventeen months in Bom fifty three thousand plus seven thousand dollar cash flow on a trip and some other in school and so forth. So very very well done. All right. It's Elvis and Evita. Is it a vetoed pronounce that? It's the Eva. Yeah. Okay. Thank you. Sorry. Hillbillies trying to say you. That's what you get. All right. Fifty three thousand dollars paid off in seventeen months making ninety four to one ten countdown. Let's hear a debt free scream three two one. Love it. Love. Bob Yalo's well done you guys very well done. Lydia is with us as it Lydia. Okay. His with us in San Antonio, Texas on gun Schaal names. Now, how can I help you? It's a wonderful to be on the phone with you. I I was praying to God, I need it. I mean help with my finance, and then I just configure it out. And I was like trying to avoid even thinking about it home. I'm a single parent of three sons, and they're all in college. But I have to at home and once up and college in New York, and he's actually graduating from the university of may. Anyway, we cash flow it all that. I had. Yes. As I had the GI Bill because I retired from the military Lydia. What's your question today on I'm sorry? My question is how right now, I'm working fulltime job. And I'm going to school fulltime. But it can't seem to get control of my finances finances too because you actually get another job. Okay. Why is it you have a bunch of debt? Yes. I do. I have about fifty thousand six hundred dollars in debt. What are you making your mind job? Am I may job? I make about sixty thousand. What is the fifty eight thousand dead on? I with them. It is. Debt, like credit cards and personal loan. Tell you what we're going to help you out. Put you in financial peace university. I think you need whole program around you on getting out of that and getting on a budget, and we're show you how to do every bit of it. Today. I rent the thirteen thirteen. And now the three remain faith hope and love, but the greatest of these is love. Mexico said forgive and give as if it or your last opportunity love like there's no tomorrow. And if tomorrow comes love again. Keith is with us in Wichita, Kansas. Welcome to the Dave Ramsey show. Thank you for taking my call. Sure. What's up? I have a question on disability long-term disability. My company offers it to us, and they pay for it don't cost us. Anything Naven have short-term and long-term do some checking in on that they if I was ever to have to use it. They said that would be taxed on that money. Toronto. You said don't get anything that you said be taxed, so should I be looking into somewhere else to buy it? So I paid for it with after tax dollars. No, it's free. Okay. And so there's no way around it that since it is furnished to use benefit is taxable income if something were to occur, but that doesn't destroy the benefit you still get the money. It just have to pay taxes on it. And it hasn't cost you a thing to get the benefit covered. Now, I wouldn't worry about. That at all the thing is the only reason I would do this the only situation in which I would do something different would be if your company gives you a been amount of benefit dollars. There's a thing called one twenty five plan or sometimes it's called a cafeteria plan. Okay. And they say, okay, we're going to give you five hundred dollars a month to spend on different things. And you can either spin it on disability or you can spend on this. You can spend on that. And you have a choice that way on how to structure it. Then I would buy my disability that way with after tax dollars. And I would use those cafeteria dollars to buy something else inside your benefits package. But in this case your companies, like our company, I just pay for it. It's a benefit. I give to my team members free doesn't cost them a thing. But the downside is that it is then taxable. And there's no way around that other than turn around make them pay for it some way, which is a truthfully. Payroll pain in the bud. So we've never done it. But. I wouldn't worry about it. I would just accept the benefit and rock on Melissa is in Lancaster, Pennsylvania. Hi, melissa. Welcome to the Dave Ramsey show. Thank you. With your time today. I appreciate it. Pleasure. How can I help? So I am selling my house. And I stand to make about forty thousand dollars on it after I sell it. I have a car Carlynn about nine dollars that I plan to pay off after that, I'm completely debt free. But I also don't have any retirement. And so I'm just trying to determine is it better for me to take the thirty one thousand dollars that I have left over and kind of put that back into purchasing another house or should I put that into savings retirement, or what would you suggest which your income? About forty two thousand a year in what's the price range of home? You show. House that I'm selling is about to eighty. Wow. Yeah. And I'm only looking to buy one that's around one sixty five. Okay. You weren't servicing to eighty owned forty two thousand. No, no, no, no. I was not. Was a I work together and we have separated. And so I'm going from a double income. Okay. Let's what I was guessing. Okay. Sorry about that. Yell. You have children. I have a twenty year old daughter. Who's in college? Okay. She on children that you have to worry about for housing. Okay. Well, the first thing is yes, I don't you. You did do the right thing by paying off the car out of this in your mind and following through on that. And yes, I would set aside three to six months of expenses as an emergency fund. I would sheet down to the three side in this situation giving you as much of a down payment as you can possibly have on the next house, and that house should be where the payments are no more than a fourth of your take home pay on a fifteen year fixed. I don't think that's putting you into a one sixty five. Okay. I think that's going to bring you down further than that. Which could mean that you may were you married twenty years should lay thirty twenty five. They married probably twenty five years. Oh, no. It was the second marriage. So we were only married for eight years. Oh, all right. I was just thinking it's okay to set to okay. Pay off the car set aside, an emergency fund set the other portion aside and a separate account call that your house fund rent, something inexpensive and. Whatever emotional recovery, you might need give yourself six months and then make a decision on buying a house. The only problem with that is in entails a couple of moves rather than one move, right? And I was kinda concerned because my rent around this area is more than what my mortgage could potentially be. But it would be a thirty year fixed at only ten percent down. And that's why I was kind of going back and forth. I always gonna put you down because the thing is. It's. It's an okay thing in your situation to do the thirty that on the short term that feels like the right thing. Do I get back into homeownership? I got my future lined out, and those kinds of things what let me ask you this. What's the path on your career? Look like, I mean, are you looking to see your income come up substantially in the next few years now? Okay. All right. So you the thirty year mortgage is not a good longterm play. And because it just traps you, and it ends up. Not being the best thing for you long term. So I'm going to boot on down in house, or I'm going to tap the breaks weight and rent is always higher in every area, by the way, that's not different. They're wrench always higher than than payments. But payments owning a home is always more expensive in annually than than renting. But it is not more expensive over the long haul because it goes up in value, but you've got repairs, and you've got all kinds of issues and things you have to deal with when you're the homeowner anything that breaks, you gotta fix it. When you're the attendant, the landlord, just fix all that. And so. This is one of the reasons that rents are higher. So it's a temporary measure, even though rents are higher might be okay. To kinda get stabilized and start thinking about your long term career prospects and plans, given this life change that you've gone through. And then that might change what you purchase or where you purchase even. And so it's just a lot of up Yvonne lot of change and a lot of pain in your life. And those are never good times to make great decisions. So you sound really stable and up beat and everything on the air. So maybe I'm overstating this maybe adding melodrama to it. I don't know. But those are always just concerns with what you're going through. And I want you to just be careful and be steady careful and steady always wins. You know, so take your time. But yeah. Pay off the car and set aside an emergency phone work with work with what's left. And then if you're gonna do something today. I would do a fifteen year fixed, and I would do it where the payments. No more than four of your take home pay. Thanks for the call open phones at triple eight eight to five five two two five Markaz on Facebook per a divorce agreement. I must have a policy to cover alimony obliga- Shen. Also must have additional hundred thousand coverage for one child in the event of my death. What I need to policies or one with two beneficiaries one with benefits beneficieries less expensive. And if you'll go to zanderinsurance dot com, get a quick quote on your term insurance. I don't know how if there's a time period that you have to cover these things or if it's for your entire life. And what you have to do, you know, when your child is no longer, a minor to you still have to carry that Porsche on the child, and that's what the how would carry the shortest policy that makes sense. So if it's a tenure obligation to get tenure if it's a lifetime out a twenty year, and then renew it later, but Zander insurance dot com can walk you through every bit of that. And yeah, you can have two beneficaries very easily. Less expensive to have one policy with two beneficiaries and almost every case. So thank you for the call. Are they follow me on Facebook? That puts this hour of the Dave Ramsey show in the books, we will be back with you before you know, it in the meantime, remember, there's ultimately only one way to financial peace, and that's to walk daily with the prince of peace, Christ Jesus. Hey, guys, Thompson senior executive producer for the Dave Ramsey show. This hour is over, but you can find more great content. When are you to catch? The most watched daybreak debt-free screams, the very popular everyday millionaire second go to the Dave Ramsey show. You to channel scribe. Hey, if you've got questions about retirement investing, becoming an everyday millionaire, go bigger and broader with my man Chris HOGAN on the Chris HOGAN show. I am excited to be able to talk to you all weekend and week out. We're going to focus on your calls, and it's going to focus on building wealth investing, and how to become an everyday millionaire. Subscribe and the Chris HOGAN show wherever you listen to podcasts. Hey, James, producer of the Dave Ramsey show. This episode is over but check the episode notes for links to products and services you've heard about during this episode. Thanks for listening.

Dave Ramsey Texas Chris Hogan Ramsey solutions Alexa Nicole Google Dallas BMW workman Zander Kelly pickup Smartvestor Roth Malcolm Austin Ukraine
When Your Success Eliminates Your Family Member's Job (Hour 3)

The Dave Ramsey Show

40:01 min | 2 years ago

When Your Success Eliminates Your Family Member's Job (Hour 3)

"Live from the headquarters of Ramsey solutions. Broadcasting from the dollar car rental studio, it's the Dave Ramsey show. For cash is king debt is dumb at the paid off. Oh mortgage has taken the place of the BMW as the status symbol of choice. Open phones at triple eight eight to five five two two five this hour. Triple eight eight to five five two two five Jenny is in Detroit, hygiene, welcome to the Dave Ramsey show. Hi, Dave, taking my call. Really? Appreciate it. Sure. What's up? My husband, and I are wondering if we should go ahead and pay off our home. We are thirty four and thirty five where completely free where investing approximately ten percent towards retirement saving for college education and having none retirement investment account. And I just wondering tax implications of taking from that to pay off the remainder of our home shorty, oh on the house. We all about one hundred three thousand much is in the non retirement investment account approximately two hundred twenty two thousand six hundred fifty seven oh, very good. Where'd that come from? Well, my husband those widows, and unfortunately, my husband didn't have such a great experience with money with his late wife, but my husband, and I went through cancer, Anton widowhood completely debt free. And so a lot of that money is from his life in life insurance. Oh, okay. All right. And so it wasn't taxable. When it went in there, and how how much has it grown while it was in that account. Some of it was used to pay for our first my son, and I I come after his stuff. So it's two hundred fifty went into it to start in two thousand thirteen ROY. But I'm saying of the two hundred thousand how much of it would be considered taxable growth if you start taking money out. I'm not exactly sure that number. I want. In. Tool funds. Right. Well, you can get a basis on your from your mutual fund company. And the money's been there longer than one year, right? Yes. Okay. Yes. I would pay off my home and the maximum. You would have would be fifteen percent on the amount that that one hundred thousand has grown. So if the account has let's say that just make up number. Okay. Let's say that that two hundred thousand that's in. There has a a basis on it of one hundred and eighty thousand and it's grown twenty thousand dollars to two hundred. Okay. Then that means that that hundred has grown by about ten thousand dollars. So you'd have like a fifteen hundred dollar tax Bill. Okay. And that's probably about the maximum. You're looking at and I doubt you're even looking at that. But you can sit down you can call the mutual fund company or Email them, and they'll give you the basis on the shares that you're selling, and that means what what the taxes about anything above the basis that you sell it for is going to be taxable at fifteen percent gain. And I still would do it. I still pay off the house tomorrow. Okay. I'd be debt free one hundred percent debt free. You're in a great great position. And from this point forward, then you can build wealth, and, you know, get with your Smartvestor pro gets investments going and you'll be on your way. So well done Daniel is with us. Daniel is in Raleigh, North Carolina. I Daniel welcome to the Dave Ramsey show. Hey, Dave, hope you're doing. Well. I am, sir. How about you? I'm doing good doing good say the life, and I have been married for about nine years now and. We bought a mobile home and me I got married with the plan on saving money. And and so our goal was to stay out of debt, and we paid off this this property, and since then that's been paid off. We have paid off all of our vehicles, all credit cards, everything as been paid off and go on saving money. So with the money we saved we purchased an eighty thousand dollars piece of land that's close by the home in flight. We better area. That in cash and that is paid for now. So we're back to saving up money in and we're trying to figure out win would be the best time to go to the next step and start looking at house. We I think the problem is we really enjoy not having house they may have. But we know this is a better area. And we've had a the the piece of ground lecture living on with the mobile home. What is that worth? It's worth sixty thousand. Okay. And and you have the other piece of ground that you want to build on that's worth eighty and it's paid for. That's correct. And what how expensive a home would you build how much money? Do you not to build the house? Well, it needs to be at least sixteen hundred square foot and the price of miss areas averaging hundred square foot. So we're we're thinking about one hundred and sixty thousand looking for anything big. Okay. So we got sixty thousand from the sale of the one year in two in order to get towards that goal. Right. And then have you saved any other money yet towards the building we stayed about twenty thousand now. And and we plan to continue to say original thought is if we save let's say eighty thousand over the next year. The have maybe put fifty percent down on this property, and he was eighty thousand left to finance, but what's your household income about seventy five thousand okay? And how you gonna save eighty thousand one year making seventy five. He's probably gonna take a little longer them. Now. Added to. Yes, I've got to I guess. Okay. Here. Here's our spectrum. Okay. There's one end and the other end and anywhere in between. Okay. On one end of the spectrum. I don't yell at people for taking out a fifteen year fixed where the payments, no more than a fourth of your take home pay on that basis alone. You could start building today with a construction loan, and it turns into a mortgage for one hundred sixty thousand dollars. Okay. That's not what you wanna do. How much money? Have you got in savings right now? You said twenty I got twenty. Okay. So be one hundred forty thousand dollar loan, right? And then you would just turn around and beat on that thing and pay it off as fast as you can. Oh, by the way, we're going to sell the property you're in when you move out into the new home, and we would throw that sixty at that remaining one forty and saw got eighty thousand and I would pay that off over the next three or four years. Right. And you could probably that. That's that's one of the spectrum. The other spectrum is wait until you've got the money. To Bill, and or get within sixty thousand dollars of the money to build, and you know, you put your house on the market your property on the market and sell it to get the last sixty thousand and finish your building you might have to rent for a little bit or you might have to move into a partially finished house or whatever situation you've got there to pull that off. But, but you know, you save up and pay cash, and that's probably a. A three year affair or more to do that. So I don't care which one you do. Oh, by the way, you could do kind of in the middle. You could save a bunch of it get the building started so yours take out a small mortgage pay that off in like two years that kind of thing so anywhere in between there you're going to end up with a paid for property living in it five years from today, if you keep working on the plan, you're working on which ever of those you choose so, and I think that's wonderful so anywhere in there's going to be just great well done good thinking be selling the property or the trailer is a mobile home is as part of the program, if I'm you this is the Dave Ramsey show. You know, what I love more than enjoying a great steak from a five star restaurant cooking, a high quality piece of meat at home for much less. This is why I huge fan of butcher box. But you're boxed delivers healthy one hundred percent grasp fed beef free range, organic chicken and heritage breed pork directly to your door for only one hundred and twenty nine dollars a month. That's less than six dollars a meal. That's incredible folks, and shipping is free. Plus right now, get two free for Lehman yawns twenty dollars off and free bacon. In your first box at butcher box dot com slash Ramsey. That's butcher box dot com slash Ramsey. Erin is with us in Jefferson City, Missouri. Hey, Aaron welcome to the Dave Ramsey show. Dave, how are you? Better than I deserve. What's up? I got a I'm in kinda crossroads. And I wanted your opinion. I have an opportunity to advance in my company, but there's one problem. My brother works for the same company. He's been there for almost twice as long as I have. And if I accept physician or if I get position it will put him out of the job. Whoa. Because I will become a boss, and he cannot work for me. Okay. And he cannot work for you by company policy. That's correct. Okay. Can they not move him to another department? No, I I'd be over the whole the whole store. Okay. You would have to how how big a company is this? About eight billion. I guess huge. Okay. All right. And who has offered you this position. I've not been offered yet. It's pretty clear that I'm going to get it though. Who are you having these discussions with my superiors? Did they know about this? Yeah, they they know that it could possibly put another one of their employees out of the positions. I promote him. Yes. And I won't make an exception not due to company policy now. Well, you can company policies not a federal law. You can make an exception to company policy. That's that's ridiculous. I mean, why would you wanna promote somebody who would put their own brother on the street? That's dome leadership on their part. I mean, they're asking you to be willing to cut your own brothers throat, right? That would be correct. Yeah. That's ridiculous. So he would be able to move to a different location. But that's you know, that's about thirty thirty forty five minutes away. So. Email the transfer stores, but not in the same store, and he's been in that same store for a while. Thirteen fourteen years. I've been there for almost seven. Yeah. And so what about you taking a different store? I thought about that. That's kind of that's kind of a tough one for me. We would both be in the same situation. We both are based in the same city. And they're they're both commutes. If we were stay with the company. Yeah. Yeah. But I mean, this is not your brother's fault. And he was he's been there longer than you. And. This is the company being stupid. They really is. So I would go back to your supervisor and say. I can't do this. I'm not gonna cut my own brothers throat. I'm just not going to do it. And so you guys need to make an exception to your policy in order to promote me. Why would and then I would ask him. Why would you want a leader running one of your stores that would kick his own brother in the stomach? I don't want that guy working for me. You know? And so you don't wanna be that guy. No, no. This is stupid. Corporate culture is what this is. And these leaders need the leaders above you need to make an exception to this to show that they have character. I mean, I get that. You wouldn't hire. I don't hire siblings. I don't hire family members here. And we have our policy is almost never because occasionally I do, but it's about one out of one hundred times because it's fraught with danger. It's very difficult for you to lead a a store with your brother there. I get that would your brother worked for you. No, he would not. He wouldn't want to know he wouldn't want to actually him being there twice as long. So this is going to hurt his feelings is what you're saying. Yes. That's percent. Correct. That's actually where I'm at. I don't know if I should do. What's best my family, or okay that that's a different discussion. Then. Okay. So. You know, your brother should wish for your success, not be envious of your success? And if he can't do that, then that's on him. But that's different than hey, we can all get along with this companies too stupid to make an exception. That's a different a different rant on my part. And that's now back on your brother. So, but I still even though it would hurt his feelings. I mean, if you could go in there, and he chose to not work there because you were the later then that's his decision, but for you to force him out because of company policy, I wouldn't do that. And so I tell you what I would do. Let me try. Let's start again. Then now that I've got this extra information again, go back to your supervisor and say, I think if you will make an exception to this policy that you won't have to when you promote me he will leave and go to another store or he will quit, but that's his decision. You didn't vote him onto the street. Do you see what I'm saying? Yes. He's got to decide he's going to man up and not be jealous. Little brat about his own brother succeeding, right? And if he didn't wanna do that if he wants to stick his lip out. No. Well, just you know, 'cause I've been around here breathing air longer than you. I should have gotten the promotion if you should have gotten the promotion that you would have gotten it. So that's not. But but you take that job with the option for him to stay there, knowing you and your supervisor knowing that he likely won't he'll likely move to another store or quit, right? Do you think you'll just quit? Yeah. I think he would he would just get mad and quit. Yeah. He he's kinda arrogant. Yes, this is the guy that burns down his own neighborhood to protest, right? Yeah. Yeah. I'm gonna show you I'm gonna quit. My job. Oh, lord. Well, that those are those are his problems you're not responsible for his problems unless you create them by putting him out of a job. But I wouldn't put him out of a job. If he choose at my even benefit my family. No, even if it would benefit your family. I would take another store, and I would commute to not cut my brother's throat, but you're not cutting his throat if you've worked it out to where he can stay there, but he chooses not to see he still go get pissed if you take another store. Because he's just that guy that doesn't want anybody else to win if he's not winning. Right. That's correct. Yes. Yeah. So he still is had done opportunities that he has not taken advantage of and fast got the company. Yeah. And he's going to be mad. No matter what happens because you're going go get a store, and I'm not gonna not take the promotion. Just because he's going to be mad. That's not the issue. You see we're drawing the line. Yeah. And so I I would ask my supervisor say, listen, I really wanna take this promotion, but I need some help. I need a a on the slim chance that he would stay I need a temporary or a long term exception to this policy and let him stay. But I'll give you a real high probability. He's just going to quit or he's gonna wanna move to a different store because he won't work for me. And and but otherwise, you're putting me into a position that I voted my own brother into the street without him making the choice, and I can't be that guy. And I think you have that conversation, and you say you would want me to be that kind of a leader that cares about not only my family. But the team that I'm leading you want me to lead. Well, and and you know, be concerned about the the the. You know, the well being of the team you wouldn't want me to be a leader. If I would cut my brother's throat, I wouldn't want you to be even if it benefits your own family. But again, if he gets mad or he gets his feelings hurt and he makes some dumb decisions that's his fault. That's not yours that's different than for no choice of his. He gets put on the street as a difference. There's a different line there in the sand. So that's a difficult one to work through this an interesting discussion, thanks for calling. In the lobby of Ramsey solutions. Tom, and Melissa are whether it's guys how are you? Good. Dave, welcome. What do y'all live hills? Michigan detroit. Okay. The Detroit area. Welcome to Nashville and all the way down here to do debt. Free scream. Yes, sir. How much have you paid off one hundred and forty one thousand one hundred seventy nine dollars and twenty seven cents and how long did this take five years and two months? And what was your range of income during that five years in two months thousand to ninety three thousand forty all do for a living. I work at had a tree and lawn care industry, and I'm a manager and a retail place. Great good for you, guys. So what kind of debt was this one hundred and forty one thousand dollars. Well, we had three credit cards home equity loan of blown truck loan, and I'll house your house to pay off the house. I'm not gonna weird people. Yes. Yes. Yes. Yes. Yes. Very cool. So what's the house worth Ron one hundred and forty one hundred fifty and you own it. Yes. It's yours. It is aren't though payments Hainault mortgage. Look at you love it. Why are they go? So I'm guessing you work the baby steps and paid off your other stuff and baby step two. And then the reason for the five years and two months as you're then got onto baby step six, right? Yep. Well, we drug it out just a little bit. When we first started. We were doing a little bit Davish. And the I seventy one thousand that we did we did that in forty months when we got down to the house, and we looked at it. It was we ended up doing the last seventy thousand in twenty two months. We almost double our rate. Going backwards. That's great. Going once you see the finish line though. You can sprint even if you're tired. Exactly. Yeah. Well done. So what got all this started five years ago? Well, originally, we were driving along we had our our new to us, truck and boat and everything we're just going along lived our life happily ever after using debt and credit cards and saw billboard with your advertising, you on radio station locally. So turned it on the station. We were listening, and I'd heard of you in the past. But I really didn't listen that much and you're talking about getting out of debt and the total money makeover. So I ended up getting the audio book. And we went on vacation a week later driving up into northern Michigan. Got the truck out the boat, and my wife is sleeping while driving. And I had a kind of panic back because all of a sudden realized how badly we had gotten into debt now. And we were literally driving up there. To look at a bunch of pieces of property 'cause I'd concocted a scheme where we're going to go by another piece of property. It would take us down to about twenty five dollars a month. Leftover if we buy the property while and so we drove around, and I'm kinda telling her she's still sleeping bit through most of the the audio book, but it's a little bit. And we we look at a place in we'd like them all, but I told it's not the one the one, let's let's this is good home. Basically, we got home wrote out the debt and got on the plane together. And she, you know, my wife's got she's the best wife ever. She us. She was go for let's do it. Very cool. So from then on it was game on, but you're a little slow on on your intensity and through your Bush through the other debts, and you kept the boat and paid it off you kept the car and put off and everything. But then after forty months, you get all that done. And then you look up twenty two months bone. We knock out the house. Yeah. Basically we saw that. We we'd lacked on our intensity, and we could have done. Way better. And when I was looking at what was left, I thought, well, you know, it'd be really nice to actually pay the house off while I was still forty five and she was forty and I just pulled the number out of out of my head. I thought we could do it. We wrote it out it seemed doable. And it was go. We sold the things we could we had grabbed sales Craigslist anything that we can get rid of. And we made it with two weeks to spare and hit the goal. Good for you. Well, done very well done. Okay. So folks are listening, and this might be their first day like that first day when you had that kind of panic attack thing. What do you tell them? The key to getting out of debt is definitely being together on a budget beyond plan writing it down vibe years of being on the budget. We did it every every month stack of papers is your budget for five years five years of everything since we got on your program love it. And this was just the countdown of of getting through that and show that to your grandkids have is that's when your family tree was changed right there. Yeah. This is it and I'd say sacrificing in the things that are easy to get rid of cable. Tv we did a few other things just to to save some money heat the house with a wood burning stove save some money in Michigan. It's a lot of cutting wood while very good. You guys. Very good. So you don't have a payment in the world. And I was that feel awesome. It's awesome. Yeah. Very I would also tell people just stay away from the easy credit and the only three credit. Cards were in our journey here. I ducked through the filing cabinet. This is a stack of forty three credit cards. That would collect it since we were married why. And cancelled about get one here. They're the just wanting to to hate ten percent off. You can go buy something at the store here. It is. It's just too easy to stay away from it. It's not easy to pay it off. But it's easy to get in. It definitely easy. And this is not how you get rich. You don't get rich by cheating them and getting the points. And like you say it's having the money in your pocket. Yeah. Well done. Good job YouTube proud of you, very well done. Excellent. Excellent work. Well, we've got a copy of Chris Hogan's book for you every day millionaire because that's where you're going to be. Now, you're heading that way, making ninety three thousand and no payments in the world and nothing to stop you. Now, man you on fire well done well done. All right. Tom and Melissa Detroit. Michigan hundred forty one thousand paid off. That's their housing everything. Five years in two months, making eighty one to ninety three count it down. Let's hear a debt free scream to one. Well done you guys beautifully done beautifully done. Very very proud of you. Good job. All right. Let's go to amber, inlaws Angeles. Amber, welcome to the Dave Ramsey show. Hi, dave. Thank you so much for taking my call. Sure. What's up? Well, first off. I just found you a week ago. I'm very very new a little background is I've been married for seven years with three kids together for fifteen thirty years old. I thought it was really good with money. We had moved back and saved and paid off got married at age twenty three with our daughter say fifty thousand his little sticky situation husband's family said they wanted to buy houses for all their sons, and they told us, you know, save your money. We're gonna purchase this house, and you guys can move into it. So we stayed in a garage. My one year old daughter, we paid our got married paid cash. Put my husband through school. He got his associates degree paid twenty five thousand cash we saved we didn't do anything. So I thought it was really good with money the money that we save the fifty thousand they told us that they would put our name on the house within a year after we moved into this house that they bought. Before you moved. I was twenty three and I should have listened to my grandfather. But I did not. I just went off the trust of my husband's family, and what my husband said his dad, so we. Did you put money into the house? Yes. It was a two bedroom. One bath, we added a master bedroom. Let's not in your name. That's not in mine crap. Yes. And with the promise that it was going to be in our name. I said, I don't even want it put in my name without you know, just a gift because that's they're saying it was a gift. But I said, I will will pay you like, we'll we'll pay you know, we'll buy it off, you whatever, you know. They said, no, no, no, don't worry about it. So we added this stuff on and you know, sticky situation, ugly situation never will do about again run up. What happened? We added back house as well. So anyways, the house never gonna get in. Our main stay basically are not putting it in our name to move and start your life over right? Well, the thing is is that obviously it was they bought it at the time where it fell. So they've bought a really cheap house or mortgage is only fifteen hundred. Sorry rent. But I always wanted to be a homeowner. They feel like they stripped it away from me. I put my sweat and tears into that you've lost house because your husband's family's cribs. You're just gonna move and start again, you don't you don't you can't just either. This is ridiculous. Scripture of the day on forty three one and two do not fear for I have redeemed. You. I have summoned you by name. You are mine when you pass through the waters, I will be with you. And when you pass through the rivers, they will not sweep over you. Booker T Washington said success is to be measured. Not so much by the position that one has reached in life as by the obstacles, which is overcome while trying to succeed a min, Amen. Good stuff. Our question today comes from blinds dot com. The number one online retailer of custom window coverings. You get free samples free shipping. And with the new promos run every month. They run every month. You get a deal use the promo code Ramsey. And you get the best possible deal. Joe cya is in California. He says my question is when saving for a home. Should I invest in the stock market just parked the cash the Bank until I have enough for my twenty percent down payment. Joe if you study the cycles of the stock market just a little bit the history of the movement of the market, you'll find that. If you leave money alone invested in mutual funds, at least five years, you stand a very very very good chance of making some money. If you leave it alone only three years about two out of three times, you'll make money means you have a one in three chance of losing money. And so short term savings for one to three years. I do not use mutual funds. I don't recommend you use mutual funds because it's too difficult to lose money while you're saving towards a project or down payment on a house, or whatever we're talking about here. So if your game plan is going to take longer than five years than yeah. You might try some usual funds for your long term investing. But if it's gonna take less than five years now, I would not take the risk. I would simply pile it up in a Bank account. You're not gonna make anything on it. But you're not gonna lose anything on a leash is with us in Buffalo, New York. Hi aleisha. Welcome to the Dave Ramsey show. I base. How are you better than I deserve? What's up? Okay. So. My fiance, and I together we have a total of three hundred dollars student loans for hundred thousand dollars student loan debt, and then like sixty thousand additional debt one of your married. Well, that's the thing. I personally have been trying to postpone it because I'm just petrified. Even thinking about a wedding. And we have so much set to the list. Let's let's break it up then because we don't have debt into we are married. So how much student loan debt? Do you have? I have about two hundred and sixty dollars per student that currently and I have two years of my my doctoral program. What are you studying pray? Tell. I know I'm getting my background in their thing. Your badge worse. You mean, you're you're you're getting a PHD nursing. It's it's a it's a doctorate program. So it's different. It's like more clinical than a PHD so trillion nurse practitioner program, but just to the doctoral level. Why? Because. I wanted to further my career I wanted to make more money and have to work less hours. Or you could get a lot quicker, and you would be an exactly the same setting, right? I'm sorry say that again is a nurse practitioner. You could get that a lot quicker, and you'd been exactly the same position where your career, wouldn't you? Yes. I mean is particul- it's just it. But how the doctoral above nurse practitioner further your career. It just gives me, you know, different options, and they're they're currently working on trying to all the nurse practitioners to doctoral status at a certain point. So, but that's not happening. Right. Okay. So my area they that's pretty much all they're they're starting to offer is the bacterial. They're getting rid of a lot of the master's programs for that reason. So anyways, I'm yeah. So, and I I mean, I've so deep in it that is either waste all the one. Wasted. You've already got enough to be an R N. Don't you? Well, yeah, I worked as an honorary. For quite a while before I started this program on c-, and that was the two hundred sixty thousand dollars in debt. Well, I'm so young I wanna single for a long time. So I, you know, put myself through I got in societas, and then I got a bachelor's and. Thousand dollars in debt to be an R N. Yeah. I mean, I was a little confused on what I wanted to when I was young. I figured out that I wanted to do this. You know, no get a doctoral while you're two hundred sixty thousand dollars in debt as an RN you can work one hundred hours a week if you want to and you can make Bank and clean up your dad. Gum miss. You have a huge student loan debt, and you're just piling on more. I mean, you have a mess kit. Oh, and you're not doing anything except making a bigger mass. Because the diff the difference in your income after you finish this doctoral program, and what it is today it in squat. Right. So you're just collecting degrees at this point. Well, I'm kind of in a position where like it's not like I can stop in come back to later. But you said you two years more to go. Yeah. So you're gonna be four hundred and something thousand dollars in debt is that what you're telling me. It would probably be an additional twenty five thousand. Twenty five thousand. In two years. So you're going to be three hundred thousand or so in debt, and you're gonna have a doctoral in person are you working while you're doing this? Well, it's not really a program that you can. You know, it's a per diem. But I work, you know, varying hours, but I mean, I bring home after taxes probably about four thousand a month from that, you know, to try to compensate. So I was trying to figure out shit. I mean, I I'm kind of in a place where I have to finish. Because if I don't I can't transfer somewhere later on it'll be like nothing graduate school only transfer like six predator that I'm halfway through the program because it's a bachelor to doctorate show Arca fouls hours pick from this point forward. But don't go further and debt. This is the you've been on a suicide trip here. I mean, this is this is a mess, and it's not your fiance. It's yours. I know and then. What does he make? So he makes about you make fifty and I make between forty five and fifty sometimes a little bit more do for a living. He works at a Bank. And he's you know, I mean he has plans to elevate himself through there. Have you been how long have you been good? But here. Well, I think you guys have got to decide what you're going to do. And I can't decide that for you. This is your life. You're going to have to make your calls if you are going to get married. I would just go ahead into it. If he's willing to take this on and the two of you are willing to work your way through this debt together. But I don't think you can sit around and say I have to clean this up before we get married. You're not going to get married for a decade if you do that. And so I think if you're going to get married, you should go ahead and get married and the two of you take your hundred thousand dollar income don't go further in debt, and then began to attack the debt and claw your way out from there. And that's what I would do. So, hey, thanks for the call. Appreciate you. Joining us. Open phones at triple eight eight to five five two two five that about puts this particular hour of the Dave Ramsey show in the books. Thanks to James Childs, our producer Kelly Daniel, associate producer and phone screener. I'm Dave Ramsey your host. We'll be back before you know. In the meantime, remember, there's only one way to financial peace, and that's daily with the prince of peace, Christ Jesus. This is James Childs producer of the Dave Ramsey show. Did you know you can now listen to the Dave Ramsey show on Pandora and Spotify for all the ways to watch. And listen check out our show page. Dave daveramsey dot com slash show. Hey, guys, if you're looking for real world, leadership and business advice from the top minds in business. Check out our entreleadership podcast. Hey, folks can Coleman. Here would love to have you. Join us weekly as we dive into conversations with the top minds in leadership and take your business questions to help you grow yourself your team and your profits. Don't miss an episode subscribe to entree leadership where you listen to podcasts. Hey, it's James producer of the Dave Ramsey show. This episode is over the check the episode notes for links to products and services you've heard about during this episode. Thanks for listening.

Dave Ramsey Ramsey solutions Kelly Daniel supervisor BMW Michigan Anton Raleigh Smartvestor North Carolina Jenny Tom Detroit detroit James Childs Nashville Michigan
Financial Progress Doesn't Happen by Accident

Chris Hogan's Retire Inspired

36:17 min | 1 year ago

Financial Progress Doesn't Happen by Accident

"The IP coming up on this episode. You don't wanna miss it. I'm gonna talk with a caller, who's really started to dive in and understanding what dreaming in HD means. And then I'm gonna talk to a special young lady who's overcome some challenges or self to be able to connect and walk her mother through two very surprising status. Tune in don't miss it. We've got good things. Welcome to the Chris HOGAN show, home of everyday millionaires. I am your host. Chris hogan. This is your show where your life in your money, takes center stage and never forget, it's your life VIP's take charge will listen, I'm glad to be back with you. We have some people on the line that have some real life, money, questions and money situations. And here's the deal, VIP's, okay, things don't get better unless we choose to make them better there it is. You see, there's no magic elf that's going to show up and just make your financial situation better for you. You are that he wro-. So you're the person that's going to have to get your own Cape. Right. Get your own, like kinda unitards, okay? Don't visualize me wearing one of those. Okay. You'll you will scare yourself. All right. But you gotta get your own Cape and make decisions for yourself. Because betters available what we have to do is believe that we can't. And you know what the IP's believe that we should? You see, there's not a thing out there that keeps off some getting better that person in the mirror is the person that UNITA I get on your side and get aligned with your dreams as well as your team because I believe you can do it. Now, VIP's this show is about you, and it's for you and I don't have a show to do without you. So I need you to call in. If you've got a question, or you've gotta money success story that you wanna share. Call me that number to call is eight four four two eight three nine three eight three. Again, that's eight four four two eight three nine three eight three. Or if you prefer, you can send me an Email, the Email addresses, ask, at Chris HOGAN, three sixty dot com. That's all you have to do. And so you reach out let us know what's going on. You can share your success story or give us your question. That's why we exist. All right. I'm jumping on the phone, Lisa. How are you? I am absolutely wonderful there. How are you? I'd like to hear the smile how can I help you today? Well, I my husband and I had a little bit of life happen. And, and I wanted to just give you a little back story. And then ask a question if I may certainly can't what happened. Well, so couple of years ago, I started having some pretty intense bouts pain mostly in my joints, and they seem to come at random. So after a lot of doctors appointments and tests, I also was diagnosed with, unfortunately degenerative progressive disease that doesn't currently have a cure. Thank you. It's, it's okay. You know, I'm surrounded by an incredible tribe. Chris, I tell you, my husband best guide so lucky down the street from my folks, I got a lot of really good things in my life. And don't give me wrong. Sometimes I absolutely ugly. Cry my rocky road. Okay. I'm gonna sell. But, you know, I'm grateful every day and about halfway through Rachel Cruze contentment journal. Yes. But the other thing that's really fortunate for me is that I have very insurance. I mean this condition will ultimately likely disabled me before I'm done working before I wanna be done, working, I suppose, but I had this building insurance, and what's really great about that is stress is one of the biggest triggers the disease that I have. And because I have this billion sheri-, I think I'm healthier longer. But the question becomes because I have that I feel really confident in continuing the baby steps as they're written. And so we're right now. I'm baby step four. And so my question to you is because I don't know how long runway really is should I do anything different does that change the percentage of vehicles? What would you say? Lisa. How old are you right now? I'm thirty eight first foremost. I have to tell you, your positive outlook is absolutely motivating because I can hear in your voice that you've made a decision. You may have this degenerative disease. But this disease does not have you. I hear it in your voice, I hear you outlook and I'm proud of you, and I'm so grateful that you have a good try. But people around you because that can make all the difference. But as you look at this, and the typical things with people with this disease at thirty eight at what time does it begin to get worse, or I'm actually kind of one of the lucky ones? Ugly head as a teenager, maybe in your twenties. So it's hard to say really and what baby step or you guys on right now. We are on baby step four. We really buckled down and got through two and three. So we're, we're in pretty good shape. They're good. So baby step four and you guys you have been on baby step for how long now. Oh, gosh, let's see, like two years. You know, looking at this, the main thing that I would think of you've got the disability insurance that you talked about. But for me, it would be a matter of looking and starting to think ahead like planning ahead. It might mean you know, you got to keep investing because compound interest is how your money is going to grow, but I want you to get connected with a Smartvestor pro and really start to look at realistically, what could you be living on based on what you have now like how much do you all have saved toward retirement as of now right now just a little over three hundred. Okay. Three hundred thousand three hundred thousand good. So you guys have. Been investing. Now what I want to do. People are tempted, Lisa in this scenario to take on more risk than they should okay? Have you heard of bitcoin? Yeah. You've heard of that. Lisa. What's your thought? When I say, bitcoin running me other direction, likely so much like you so much. You know why? Because listen, you and I both know there are things that we can invest in that will grow. And we understand there are other things out there that are what I call pipedreams. I don't want people to take on necessary risk. And typically in a scenario like yours, that's where people which to hit for the fence. So I want you to stay extremely focused like you have to have three hundred thousand already put away but start to be very wise. Meaning be very intentional with your money, and make sure you work in the plan. And so while you might look at this and, you know, you look at the long-term disability insurance if that's an option or other coverages for you all you're thinking ahead. So that's what I would advise you to do. I wouldn't necessarily change up any of the baby steps because that recipe works, Lisa. The main thing would be the intensity by what you guys are following it. And so, I want you to keep taking care of yourself. Self won't you? And your husband is still stay on the same page. But definitely keep in touch with your e o p for insurance. So you understand what coverages you have, and what you need to go on, and get in place or bolster and stay connected with your Smartvestor pro. And I'm what you guys going in quarterly, you and your husband, both sit down to talk with them just so you understand where you are. What's going on, and what tweaks need to be made? Those tweaks can be inside how you're investing not what you're investing in gross stock mutual funds are still the absolute way to go as you look at all the options there inside of that. And get the right guidance. So Lisa thank you. I love to hear the success story. And that of you overcoming, some serious challenges and VIP's. Listen, we all have some life going on. Right. And then if you're in a calm season right now. That's a good thing. Odds are you probably just came out of a rocky season. Right. And so life is about ebbs and flows. But it's more about who you're doing it with, and number one, who you believe in. And I'm always tapped into the big man upstairs. I know what's going on. I'm not confused. Right. But I want you to understand who are you doing life with? It's imperative to have people in your corner. It's imperative to have the right people to be able to support you in encourage you when you get a little bit tired, because that's normal. Right. It's normal, and don't try to buy into our American culture where you just grin and bear it, and you do it all alone, and, or right. You just grin and go through it. That's not realistic. You can only do that, so long use obstain yourself. And you stay energize. When you have the right people in your corner that you can lean on. All right. I gotta get back on the phone. I've got Jared out in Connecticut, Jarrod. How're you bag yoursel? All I'm focused and not finish my friend. What's on your brain today? Say thank you, you and your team Latina and principal changed my life and my marriage and by entire family and just the way that I look at a little. So thank you, my friend. You are very welcome. I'm honored to hear that. And always appreciate the complements the team here doesn't outstanding job. And we are focused on helping people have hope. So thank you very much for that. Yeah. What question you have for me on my question for you is? So I I'm really plugged into the show. And I really like how you say dreamy in high definition, and everything started doing now with my wife, we got to the point of retirement there and realize that you don't really know what kind of cost, we're looking at when gets retirement wondering if you could help educate me on some of the things that I should be looking for, because I did the R I Q in a really detail oriented, and I want a good ballpark. What I'm looking out for a tire macaca, while listen, I'm proud of you and your wife or digging in and talking about the high definition dream, and before we get to it, I need to know jeered, what is you? All's high-definition view of retirement. I would like at least one investment property are close to the ocean, my life, one, the OSHA. Wanted to get some land and just other the nets really time kids. Fantastic. Do you plan to do any kind of traveling? No, we've been really, really talking to know. We're homebodies. Okay. Hey, there's nothing wrong with it. Sitting at home. I'm asking those pledge. You guys did that together because that's how you start to get online, Jared with what you're thinking about, and what life is going to look like now in as far as the expenses, I was asking about traveling and kind of some of your goals because that's going to determine really the dollar amount that you're looking at. So, for example, you guys are budgeting right now. And you understand and know exactly what it takes to run your household right now. But as you move in toward retirement. There's a couple of things I want you to do. I'd love you to be one hundred percent debt free at including the house while we're currently on baby step three here. Very short. Okay. Good. Good. And how many debts do you have left? Okay. How much is that? There's about ten thousand dollars left. Okay. Is that a car credit card student loan to long? Okay. Good. So you've been chopping at that thing that's fantastic. And so, you know, as soon as you get this ten thousand knocked off in the student loan, debt, you start to see. Wow. I've got more money staying with me which is going to allow you to build up that fully funded emergency fund Jared, and then you guys can really start to move into investing. So here's my thought. Think about a your home being paid off. Right. You've got a pile of money sitting there. How much are you wanting or needing to live on month to month as you look into retirement? You guys are on the front end of this. The biggest thing for you to remember is that you want to get this debt out of your life and build up your emergency fund and start investing. But start to think about outside of paying your property tax on a home. That's paid off. You're going to have the standard utilities, electric and gas. And, you know all those things but outside of that, you have any major payments, so that's where I want people to stop. To think about how, what are we living on? Is it four grand a month? Is it six grand a month? And really what you all are looking to do will determine that. Now I like that. You guys have a goal of an ocean property. Is this Jared of property? You guys will vacation on or you renting it out a little bit of both. Okay. And what location are you thinking? Are you staying on the east coast or you go in west coast? More than likely Rhode Island. Okay. And what dollar amount? Do you think it'll take to buy property in Rhode Island? Between three hundred and five hundred thousand dollars. Okay. So as you guys are planning, and you're thinking you're going to be investing when you get to baby. Step four fifteen percent of your income, but thinking about this, this three to five hundred thousand for this property, you want to buy. This is something that you would start to save toward, right. As you're building your wealth, and looking long term thinking about what it is you wanna do. And so these are the kinds of things that you guys can keep just brainstorming about Jared, and talking about amongst yourselves as you get an idea. The thing that I love is when people start to get excited like people start to think a little bit different. They go while hold on. I didn't know we could do this or I didn't know that this was an option. That's when the dream starts to really get a wakened inside of us. And the high definition part of it is, I'm wanting you to see the details. I want you to look down in and see yourself. What are you doing? At that be house. Right. Or you sailing. Are you just hanging out with? Grandkids like drill Linda that, as you guys have that conversation, and it'll help the details kinda come alive. More and more for you. So stay focused attack the rest of that student loan. Jared build up your three to six month emergency fund and start investing, my friend. You've got big things ahead of you and big options in front of you. So thank you for your call, and I appreciate the support fantastic VIP's. He just told you about the q the retired spark quotient. If you haven't done your Iraq, you, yet, I need you to get on over to Chris HOGAN, three sixty dot com and it's going to help you start to understand what it is. You're saving toward right. This money in the four one K has not being held hostage. Okay. It's not a lot of people say Chris four one K thing is taken my money. No, it's not. No. We're being money. Farmers people. We're growing money. Right. Because that's where your dream start to come alive. So if you've not done your Aric you go to Chris in three six dot com slash argue. It's a free tool people, it's helping people wake up and understand exactly what they're saving toward. And how they can go even faster. You all know one of my favorite personality tests is the disc personality assessment. We use it here at Ramsey solutions. In our interview process to make sure we're getting the right people in the right seats on the bus knowing each other's disc profile makes working together easier and more productive. That's why I'm excited to tell you about an easy way to use disk in your hiring process to. It's called wise higher. My personal mission statement is to educate encourage and empower as many people as I can. Well, that's what the people at wise higher. Do they help small businesses build great teams by making hiring and recruiting more approachable? Here's how it works. Why are helps you write a quality job at poster at two, sixty plus job boards, including indeed, and ZipRecruiter. Then automatically scores candidates by their personality fit using the disk Cessna the same one we use over three thousand small businesses. Trusted wiser to help them. Find great people. Get started today at wise, higher dot com. That's W is e higher dot com. Okay. It's now time for panicked or pumped. This is the segment where I coach you right? Where you are. This is where I put on my coaching hat, and if you're feeling panicked about a situation, I'm going to walk you through it. We're going to talk about it because life's not meant to be done alone. And if your pumped up about something guess what we're going to celebrate together as well. So, again, these come in via Email and so I wanna dive in and we're gonna talk about it. So I up. I've got a panicked Email from Shane in Canada. It says, I'm writing to you panicked, because my wife and I have been married five years and are forty thousand dollars in debt. The biggest reason for me being panicked, does that. I never seem to be able to get ahead. It's always a step forward then life happens. And we get pushed three steps back. I've heard you talk about the baby steps, but I have no idea. What you're referring to my wife and I have tried to make budget and stick to it. But it seems that things always come up. I'm at the end of my rope financially in need any help or advice. You're willing to give I want to be focused not finished. Thanks for listening. Shane I appreciate you taking the time to send us in. This is as I read it VIP's. I'm automatically feeling the sense of being overwhelmed. And a lot of us can be so far past that, now that it's easy to forget for me, having had situations in my life, where I felt overwhelmed. I can immediately tap into that, right? I can hear the words and I think that's from being coach where you're sitting across when people and understand exactly what they're walking through because I've been there, too. That's one of the things that helps you be able to identify empathize with people. If you're able just to tap into your own, and you can hear them. I know. Exactly what he's feeling Shane, here's the deal. It does get frustrating going just point blank. It gets very frustrating to be working hard to get ahead. Only to have something come and knock you. If you steps back, yes, I'm gonna give you that it's frustrating. But here's what I figured out that, that's part of living. And the more we put ourselves in a position to have some cushion between life happening, and us the easier things can be okay. It doesn't mean that those life things don't keep happening. The problem is our response changes a little bit. Like, number one when you've been somewhere before, like for you, you guys have walked through some of these challenges before. So you don't get panicked like you used to because you've been there, right? You've taken a step forward, which Shane, by the way, I've got to tell you, that in itself is called an achievement. Some people don't take step forward. Some people wanna sit right there. And just wait on somebody. Come get them. So I'm proud of you guys for at least taking the steps. Here's the deal, you said, you don't know about the baby steps will my friend. I'm getting ready to solve that for you in ways. You can't imagine number one, I'm going to send you Dave's book, the total money makeover. Okay. We're gonna Email, you get your physical address when send that to you along with my book, retire, inspired. We have the baby steps for this reason. We've got to have a plan on how to be able to move forward. So when you hear us a baby steps, there are seven of them. Right. And so essentially baby step number one is to get thousand dollars a starter emergency fund in place. Now, you're going to get that in place by selling some stuff. Right. You go into closets. You sell some stuff you cut out by an anything two thousand dollars. And here's why once you have that thousand dollars. Now you don't have to rely on dead anymore. Nope. You don't have to because if something pops up a car emergency or anything else you've got cash for the first time to be able to use. That's baby step one, baby. Step number two is listed out all your. Let's use that you guys have forty thousand in debt. I want you to list about smallest the biggest right Amal out list them out, right? Smallest biggest because we're going to tack it with what's called the debts. No-ball tacking, the smallest debt to the biggest see getting out of debt. Shane is not about math. It's about momentum baby. And when you start moving you start to see it wind side of the baby steps snowball, baby. Step number two, you're gonna make minimum payments on everything except for the smallest debt the small want you're gonna attack. You're gonna throw everything at that thing, and you're gonna do that, until you get yourself out of debt on average can take eighteen to twenty four months. It depends on how serious people are you all sound series? I know you can do this. Once you have that debt paid off, then you're going to build up a fully funded emergency fund, baby step number three. This is where you have three to six months of expenses sitting in a money market account ready to just attack any kind of -mergency that pops up in your life because you've got more money sitting there, then you've ever had 'cause you got out of debt baby steps one two and three are done individual. Shane okay baby. Step one, then two, then three once you get to baby step four you're gonna start to do multiple things all at the same time. Maybe step four five, and six baby step four is investing fifteen percent of your household income baby step five is saving toward college baby step six attacking the house. You're gonna do those all at the same time. Once you have the house paid off. Then you enter into what's called baby. Step number seven, which is building wealth in giving which gives the best thing you can ever do with money. So that's the plan, my friend. And I know you all can do this. It is going to be very important for you and your wife to get on the same page, that, you gain agreement about how we're going to go about this, and that you cheer each other on, you know, you guys have been married for five years. You're at that juncture. Now where, you know, each other and, you know, how to support, you also know how to rile up, right? And so what would you do as choose the support button work as a team? It's going to get you to the destination a whole lot faster. Shane, I'll be praying for you. My friend for you guys to stay. Focus 'cause you're not finished yet. You've got things to do. And I'm gonna tell you I wanna hear from you, as you start doing it. And you get that forty thousand paid off. I want you to Email in and let me know. All right next up. I've got a pumped Email in from Ryan. He's on southern California. He said my wife and I are twenty nine years old been married for nine years and are now expecting our third child, three children under five. Okay. We're just need a little moment of silence. Here this families busy, okay? They're busy. Okay. All right. All right. Three hundred under the age of five say, we are pumped to report that we are now debt free. They paid off forty five thousand dollars in three years while their family has continued to grow says, I'm extremely grateful to you for you for your motivation and obvious genuine care for those who are listening to your show. We are plowing through baby step number three, and we'll be moving into baby. Step three b very soon, Ryan. I m pump for you guys. Great job, because I'm gonna tell you something getting out of debt isn't easy. Right. I got people that, that wish they could all the time, but we're different. We worked toward it. Why? Because we know it's a destination worth achieving. I'm proud of you guys for doing that. And by the way, millennial, okay? Yeah, millennial twenty nine years old paid off forty five thousand dollars in debt. If I hear one more personal in the media, try to tell me that millennials are lazy. I'm going to jog to the station and kick the door down. Okay. Probably not not gonna do that. 'cause then I'll go jail came to that. But it gets me riled up because I'm talking to millennials here that are listening to this show that are not lazy, okay. You don't pay off forty five thousand dollars in three years. If you're not focused because you're not finished, right? I'm very proud of you. Ryan you and your wife. Congratulations on the family continuing to grow and most importantly, my friend. Let me tell you this. The family tree has been changed. You have justed some things you've. Made some changes instead of credit cards, getting your money. Now, you're gonna put your money to work for your kids, and that's a game changer. That's when you started taking control of your situation because you've got dreams for your, and your family, just a focus you're not finished, and remember, I don't wanna go backwards. Right. Don't make a decision that send you backwards. At means. Don't go look at a car or truck. Okay. Don't go looking okay. No. Save up pay cash for those things into them, and it will take time, but you're going to be focused. You got your income back. Now. It's working for you. VIP's you know, if you've been listening, maybe step three b you know what that is? But it might have some new folks out here. So I need to talk about it. Three B means they're saving up for a home down payment. So once they get out of debt baby step two now baby step three is three to six months of expenses. Three B is after they get three to six months of expenses in place. Right. Then they start saving for home down payment. And that's a big deal. And it's important at won't you to own a home. Right. Goes not just. The by one of them. Bad boys two goals to own it outright. That's the goal. And so that's what we do in following the plan fantastic. Love it. Thank you all both so much for sending your stuff in. So VIP's if you're out there listening, if you're filling panicked, or pumped, I want to hear from you all you have to do a citizen Email put in subject line, whether you're feeling panicked or pumped. Tell us about your situation Email it to us. We'll get it in and figure out which ones we're gonna use on air. The most important thing is to get it off your chest because you're not alone. If things are tough, you're not alone, because you've got a whole gang of VIP's, and there's a lot of out there. I'm trying to get an update head count on what we got going on. I'll get back to you on that. But we got a lot and we've got people focused that are in the everyday millionaire Facebook group that are pumped as well. Bottom line is you're not alone. We're doing this stuff together because we're here to support each other. So if you're feeling panicked or pump, send me an Email at Ascot Chris HOGAN, three, sixty dot com, just put panicked or pumped in the subject line. We'd love to hear. From you. It's fantastic. I like to hear these kind of shows the reality of life. Right. Of what's going on? We got some people that are feeling some stress and might be panicked. We've got people that are excited. Either way, this is what we're here for. This is why we have this show it exists here for you. All right. I'm gonna get back on the phone line. I got Rene on the line. Renee. How are you? Excited for the opportunity to you. How are you doing will help you today have a little story to tell you Russian the follow? So my husband and I started with Ramsey solutions in the baby steps in January shared kind of our journey with my mom. And she thought that it was great and asked me to put her on a budget as well. So she hates numbers to hate budgeting, she doesn't like about money. So it was pretty honored that she asked me, I, we started looking at her finances. I saw that she was had managed to get herself not only to baby set seven, but she also has a net worth just shy of a million dollars is the restful of being a millionaire even after pretty much starting over after divorced in her fifties have been. Yeah, she's incredible. She's been able to be on me out of my own stupid. If you know, questions, asked no asking for anything and we're. Turn. She's got a heart of gold, and she has been such a blessing in my kids, they just absolutely adore her. So she's seventy two years old she is retired and her inspire retirement and looks like travel quality time with her family, staying healthy and just spoiling her grandkids. She also wants to make sure that she has enough to never be a burden. I wanna know kind of how to help her see that she can't afford to these things now she can't afford to live, that inspired retirement, but also wanna help her continue to grow her wealth, so that she can feel even more confident that she is able to do the things that she wants to do. She's always been very frugal. She didn't come from much. You know, never thought she had much to handle those kind of means that all of us. So that's kind of where she is kinda look on where to go next. Let me ask you. This sounds like your mother has been in the mazing blessing view. Oh my gosh. Unbelievably I mean, don't you feel fortunate to have somebody like that in your life works? Can even this guy that any new, what Chris, she's the mom that didn't have to be because I'm actually adopted and pick me. She goes me. Yeah. Yes. Yes. She did to you. Dodgers are for me. Yes, he did. And you know what you also chose to help her, and you guys have made one heck of a team, this is a mazing for somebody that doesn't like numbers. I need you to tell your mom, she did pretty well. He's standing on the Kuzma everyday millionaire, and she, she doesn't care much for numbers. Tell her to keep on caring. Okay. But as you look at this, and I love that she's got her dream in high definition, and she knows what she wants. I think the thing is it's going to be her understanding and grasping where she has an angelie, and I say that because as I've worked with people Rene, that do have money if they came from a certain timeframe or didn't come from money, it was still hard for them to grasp it. Okay. And so the big thing might be getting her in front of a Smartvestor, pro and you go to the meetings with her to help her to start to talk about it. And so she can see it on paper and start to understand in looking at her rate of return. That, you know, for her, she's still thinking long term, and she can start to talk through and understand the dollar amounts. She this look into give or wanting to set aside for grand kids. It's just time for her to start to step into this and continue to learn grow and the beauty of it is that she has you to do this with her. And so I would just talk with her. And again, you be willing to go to those meetings with her because, you know, we can feel overwhelmed when a with a lot of things we don't understand. And so her being able to grasp it and for her to get print outs from her Smartvestor pro to be able to go home and look at that. And for her to be able to talk with you about it, and let her know what you and her talk about things between you all. And that way, she feels comfortable and asking does that make sense? And that's the way to do it. Listen, I'm gonna send you guys both a copy of my new book, every day, millionaires how ordinary people build extraordinary wealth, and how you can, too. I am so proud of you guys. I really have this is an outstanding story where you have Rene, who was adopted are adopted mother is on the cusp of being an everyday millionaire, and they're working together. That's a team thing that gets me excited. When I thank you so much for your call. Wow. VIP's. If you've got a question, or you wanna share a success story, I want to hear from you the number to call eight four four two eight three nine three eight three. Again, that's eight four four two eight three nine three eight three sent. Call me lead me voicemail or got hit him self. You can send me an Email, the Email addresses, ask it. Chris HOGAN, three, sixty dot com would love to be able to hear from you. All right. Real quick. I gotta get back to the phones. I've got Derek on the line in Georgia. Derek, how are you? Well, post took him a call Chris being tried to figure out my 4._0._1._K that I messed with a old company, and I think I'm making too much money to the Roth IRA. Also her about a back door, Roth IRA, and I was trying to find out what should I try to do that? Or she just rolled it over to our. Okay, what's your household income right now to make about a hundred and fifty thousand? Okay. All right. So one fifty so look at it this, you got a couple things you got an old for one kid old job. It's about how much you said sixty thousand sixty five. Okay, how old are you dare thinking three? Okay. So you've been saving and investing. So you've got that money from the four one K you can roll that over into an IRA now, the option for that, though, is that you also could convert that 4._0._1._K into raw, but you'd have to pay the taxes on it. So here's the deal. How much debt do you have left right now? So how any credit card debt, and I guess twenty thousand dollars and savings only other Decca had is card twenty nine thousand on. Okay. Twenty house old forty seven thousand on right. So twenty nine thousand one card forty seven thousand house. Okay. Ural mccusker. You got a good income. Got a great income. You're close to being debt free, my friend. I mean jozy row it in. I mean you've been doing this stuff. You know kinda own your own but now zero in now Derek, I'm telling you, you're about to put yourself in a position to change the game. And when I mean by that is you being intentional. So here's a couple of things, I want you to do go to my website, Chris HOGAN, three, sixty dot com. I want you to find a Smartvestor pro. These are investment people that I trust and Dave trust. We both use them. That's why we tell you all about him with confidence and reach out click on the dream team button. Again, let me back up, Chris. Okay. Three sixty dot com. Click on the dream team button find a Smartvestor pro these investment professional. That I trust they can sit down with you, and look at that old for a one, K and talk to you, about the of rolling it over or converting it. Right. So we gotta talk through that the next thing is, I want you to get super intentional about attacking getting this car debt twenty nine thousand Derek, too much K waned on more remembering don't go backwards. You just started listening. So I'm easing up on you by once you that, tack that thing get that car paid off, and what should drive it till the wheels get ready to fall off and before they do that. What you slap some new wheels on and keep driving. We're not going backwards anymore, but you are only forty seven thousand dollars away from owning your house, outright, buddy. You are close to being debt free is going to be a game changing moment for you. So stay very, very focused intentional. Go to my website, reach out, find some people around you that can help you. Wow. VIP's. I'm telling you something, we got people own here that are moving and shaking making things happen. And by the way, if you're not a member of my everyday, millionaire Facebook group, you need to be okay? I'm telling you, you're. To the party, but the party still going all you have to do is go to Facebook dot com slash Chris HOGAN, three sixty and click on the group section and fine, Hogan's everyday millionaire group. It is a massive group. They are in there. And I'm telling you, they are busy. They're cheering each other on their guide niche other, and people are in there from ages eighteen eighty and so there's all types of things that are going on get plugged in, because see, here's the deal when we're around people that are like minded and are focused and not finish. They make things happen just like we do. And it keeps us all motivated and focus on the direction that we're going, okay. Listen, I want to thank all the callers. I wanna thank my everyday millionaire Facebook group. I wanna thank the entire team in here who are making stuff happen. I've got a MandA. I've got Jackie. I've got Eric. I've got Waylon. I've got Seth listen. People are making things happen. I'm just a pretty face on the front end. No, that's not funny right there, that's terrible. But I want to thank everybody for calling in joining it and remember until next time don't make excuses make progress. Coming up at our next episode this Wednesday. I'm gonna talk to a millennial that's out in California. That's one the buy house who co take some focus and I talked to a young lady that inherited an IRA from her brother, and she wants some guidance as to what to do with that money, and I go all the way west to talk to a retiree that's trying to gain understanding of what do they do at the house, who they leave it as is or do they try to attack it? Stay tuned. We've got some information to help people. Everyone. If you enjoyed this program, we at Ramsey solutions have other podcasts, you may enjoy as well like the Dave Ramsey show. If you're looking for boring financial talk you're in their own place. This is not your mother's 4._0._1._K meeting. This is life on the radio and it's just downright entertaining. That's why there's about fourteen million of you out there today. Thanks for hanging out with us, America. We're glad you're there to hear full episodes, just search Dave Ramsey and I tunes or go to Dave Ramsey dot com.

Chris HOGAN VIP Lisa Shane Jared Ramsey solutions Facebook California Derek Rene Cape Dave Ramsey degenerative disease Rachel Cruze cure sheri Smartvestor
Taxes Go Right to the Top of Your Debt Snowball (Hour 2)

The Dave Ramsey Show

39:53 min | 2 years ago

Taxes Go Right to the Top of Your Debt Snowball (Hour 2)

"The. Live from the headquarters of Ramsey solutions. It's the Dave Ramsey show. Where debt is dumb cash is king and the paid off home mortgage has taken the place of the BMW as the status symbol of choice. I'm Dave Ramsey your host. Thank you for joining US Open phones, as we talk about your life and your money. It's a free call triple eight eight to five five two two five and some say, the advice is worth what you pay for it. Ricky is with us in Fayetteville, Arkansas. Hey rookie. Welcome to the Dave Ramsey show. Hey, dave. How are you doing better than I deserve? What's up? All right. So my wife, and I have been developed chance we went through FPU back in August. And we started with eight thousand dollars worth of debt we currently have fourteen thousand dollars left in. So we almost baby step three and with some ABI at four five and six, and so I. Yes, sir. White man, you're killing it. Thank you. Thank you really find out that my Walker time plan TI craft has a brokerage option. There's no of Hugh the brokers or transfer finds there of the current plan that I've been using don't have all the specific types of mutual funds that you recommend so currently have about one hundred and seventy thousand in retirement fund. So my question is chubby with a Smartvestor pro and use the brokers went to invest my current retirement and future contributions. Yeah. If you're to the extent you're going to use your 4._0._1._K, you're gonna use TI craft which is fine. And there's no problem with that. But for your overall, investing your kids, college funds, your Roth IRA's or any of the old 4._0._1._K's that you roll over from old jobs into new IRA's, and that way, you're controlling all that doing that investing. That's what you'd use your Smartvestor pro for and they can look. Over your shoulder and give you some advice about the about your 4._0._1._K. But obviously, they're not implementing the 4._0._1._K that's managed by craff in your case. Okay. Okay. Urvashi just stay in current plan that I mean, and you that they have their well for their 4._0._1._K. If you've got good mutual fund selections there, and if you don't you don't have choice, you've got to either go to Roth IRA or your 4._0._1._K these two options and does your wife work outside the home. She does. Okay. And so what does she make? Ninety five thousand what do you make? I made seventy thousand very good. Okay. Well between the two of you gotta take a hundred and sixty five thousand times fifteen percent. So we want eight total going in a twenty five thousand dollars, basically. Okay. That's we're gonna end up. Now. How are we going to get that twenty five thousand well, you can put it all at your place and all at her place and do some Roth IRA's, and that'll get you up over twenty five thousand probably so you're probably not gonna wanna put it all in any one of those places. Does she have 4._0._1._K option? Match. Yes. They do does yours match. Yes. My my imagine ten percent and her majesty five percent perfect. First thing we do take the match are either one of them Roth options. Yes. My retirement off raw office raw curve does not excellent put yours in a Roth and take it up to the match for sure put hers in in take it up to the match for sure. And then look and see how much out close that gets you to twenty five thousand because that's what we're trying to get to the extent. It doesn't do that. Then you can look at your Roth 4._0._1._K and say are my options. They're reasonably good. If they are you can just finish it out there, if not you can go do your Roth for your off IRA on your own and each of you can do six thousand dollars unless you're over fifty years old new seven seven thousand dollars each, but that's still only going to be twelve thousand. That's still not gonna get us up to twenty five. Probably. So you may end up going back to that craft and doing some non matching their or if has got great options. You may wanna do some non now you wanted to your 4._0._1._K Roth. I so. Okay. So here's the here's the order of attack matches. I Roth a second. Traditional third. Okay. So that we're gonna do both matches. And then we're going to either your craff Roth or Roth IRA's if those two three things together. Don't get us to twenty five percent are to twenty five thousand dollars fifteen percent. Then we're gonna go finish up in hers because she's got traditional the only place you got traditional in hers. Okay. That make sense to you. Yes there. He does. Thank you very much. I appreciate matches. I then Roth than traditional and you'd use craft only for the non matching portion only the extent it's got great mutual funds and craft has some good funds. Generally, speaking of 4._0._1._K, run by them is generally a pretty good for a one guy. So you may find good funds in there, and you may not need to do as much in your. You know, your Roth IRA's your individual Roth IRAs, but you also have kids, college and other stuff. So, yeah, you'd be meeting with a Smartvestor pro and help you coordinate every bit of what we talked about. And that's what they do. So perfect question. Thanks for the call Whitney is in Salt Lake City. Hi, Whitney, welcome to the Dave Ramsey show. Hi, hey, what's up? So I have a question so is going to be starting Dr programs here at the in the fall, and we've got about ten thousand dollars out so not very much. And so we're obviously we're looking at doing some allowing we have we have a baby. And so I don't really want to take all of our money and just put in school and live with no savings. But also I'm wondering if there's anything we can do with that money while we kinda have it in savings, but still be like making more money with it. You know, like would you recommend putting it into some kind of a cat which recommend just holding onto it and just happy safety net. Okay, Whitney, you're you're new to our program. Obviously what we teach folks is to avoid debt period. Yeah. And what we teach folks is to work through a process of getting out of debt and building up your savings to you know, to put together financial plan towards becoming wealthy. What is your start? What's your husband's studying for his PHD? Chiropractic. So it's like similar to medical school not quite as expensive. But we're looking at like two to three hundred thousand dollars. Try. Well, you're going to do what you're going to do. I can tell you that I have counseled in thirty years a lot of chiropractors that really wished that they were not two thousand dollars in debt because they don't make anywhere near what a medical doctor makes on average and they take on and they take on about the same amount of debt when you're doing that. And so I don't think a chiropractor degrees worth two hundred thousand dollars in the marketplace. Because a lot of them make fifty or sixty thousand dollars a year for the first five years they're out building their practice. And that's not the case with an MD. And I can't tell you to go two thousand dollars in debt to do that. As a matter of fact, I think that's stupid. So I wouldn't tell you to do that. I I would find another way to get at becoming a chiropractor. I'm not saying, no one should be a chiropractor. I'm saying it's not worth two hundred thousand dollars to be won. Because by not worth it. I mean, it doesn't pay enough because there's a few of them make hundred fifty. But it's a handful the number that make over two hundred just just none post and versus MD's, and you're going almost as much data as you are for an MD. And so I just can't recommend that just made a whole bunch of enemies, just one of my gifts. That's okay. This is the Dave Ramsey show. If you own a business, you have to get it online in order to survive in today's marketplace, no exceptions. Now, there's a lot of ways to do that. But the Smart Choice is host gator hostgator web hosting is reliable, and they have twenty four seven live support and host gator has an easy to use drag and drop builder that comes free with your hosting plan. Plus Dave Ramsey listeners. Get up to sixty percent off their hosting packages. Now, that's a deal. Go to hostgator dot com and make sure to use the code, Dave and get this. Great offer host gator dot com, code Dave. Christian is in Chicago. I question. Welcome to the Dave Ramsey show. Thanks for taking my call. Sure. What's up? Want to get your advice on something? I recently got a new job where I'm making a lot better income than I used to. And my question is I write I'm saving for a house. I still live at home with my parents and. I'm also investing very heavily in the market. So I just wanna get your opinion on what do you suggest that I should lean more towards like house or investing in the market goes right now, I'm I'm investing way, more than I am saving for a house. How old are you? I'm twenty five. Okay. Well, I think your first goals get out of the house. Okay. That's my first goal. Get out of your parents house, and then how much money you make. Last year. I made a hundred sixty five thousand. And your hold twenty five. Yeah. And. And you have how much. Basic. That's I'm to cut you off basic. I have my vehicle dad's other than that. I really don't have any paid off my student loan last year. How much do you own your car? About thirty five thousand and how much do you have in savings, not counting retirement? Thousand. That's what I was kind of saying house. Okay. Where am I so far? Okay. Well, I mean what I would do and you can do whatever you wanna do. But if I woke up in your shoes, my son is twenty six and he's one of the vice president this company, and he's just got married this year. And if if he walked in and gave me your exact situation, here's what I would do the first thing. I would tell him to move out and get an apartment yesterday. You're twenty five years old you make one hundred sixty five thousand dollars. You don't live with your mother. Okay. That's a first thing. I would do. It's just a dignity thing man, seriously. And I get that going in the second thing, I would do this car paid off as soon as possible, and I would use some of that eleven thousand you'll need some of it to move out and buy you, a couch and the TV and deposit on the apartment that kind of stuff gets you one bedroom apartment or whatever you get. I don't care. Something inexpensive. Don't spend a bunch of money on rent, but get. Out get on your own get your own Bill setup. Get things going and. Then let's get the car paid off. Then let's build an emergency fund. You don't need to be doing any investing while you have thirty thousand dollar car debt. Okay. So step one is to have at least thousand dollars after you're settled into your apartment. Everything else goes towards the car. Step two is we pay off all debt, which is your car in your case, you're gonna do that very fast because you make a lot of money. Baby step number three. Then is you build an emergency fund of three to six months of expenses. In your case. That's probably fifteen thousand bucks. Okay. Okay. And we build that up fifteen thousand dollars zero debt, and that covers you if you have a little bump in the road. Right as you're going along. Okay. Now, we're sitting in apartment fifteen thousand dollars in no debt that feels pretty good. Now we start saving for a house. If you wanna save for a house or you can start your investing one of the two I don't care which one you do at that point. There's no rush to buy a house you'll get around to buying one. And you probably should buy one sometime in the next five years or so in that may be when you make that perfect someone or it may be when you decide I'm going to be classically single. I don't care, but but sometime in the next five years or so I don't want you renting long long term. And so you can start saving up your down payment at that point above your emergency fund. And no more borrowing and. Then you would start you could start investing. I must send you a copy of our book, the total money makeover, which will walk you through. Exactly what I just talked about. We call those the baby steps baby step one two three four five six and seven one thousand dollars twos. Debt free except the house. You don't have a house. So it's debt-free three is an emergency fund of three to six months of expenses. Four is when you start putting fifteen percent of your income away for retirement five is kids college. You skip that one sixes pay off the house early so baby step three b between the emergency fund and the investing is where you would save for a house. And that's where a lot of people do all of that is outlined in the total money makeover. And I'll give you a copy of my gift. Thanks for being a new listener cer- open phones at triple eight eight to five five two two five Ashland is with us in Sacramento, high Ashland. How are you? I'm great. How you doing Dave better than I deserve. What's up? Okay. So I had a question in the next floor by Friday. I'll be getting laid off for my current job one. No, they cut the lost the contract for the programs that we have it here. So yeah, I've been there for about a year in get news. I have a job lined up to start actually on the following Monday. But I wanted to know what I should do my severance package at I'll be getting it'll be about before taxes supposed to be eighty nine hundred I'm dissecting maybe after that. Six grand or so every take. Get the straight. You're losing a job on Friday. And you have your new job set up for Monday. Yes. Yes, you're a rockstar love that. Well, so what are you making now? And what will you be making it the new job? And so this year, I made about thirty six thousand you know, before taxes. Oh, you make into new job before taxes. I took a small pay-cut. So I'll be making around thirty four to thirty five thousand depending on overtime and such like that. But at least four thousand. You're going to be making more because that's just kind of person you are well done so this so this severance package just becomes like a signing bonus, basically. Yeah. I've been very excited about well. You're gonna. Well, you're gonna put it wherever you are on the Bibey steps where are you? I'm nowhere bega sets yet. I'm actually gonna be up for that. My church started on the twentieth. UK? I don't know if I said, why can give dollars and say, but I don't know if I should all in sightings and sit on it right now to get into the class. You. Okay, you're gonna get into the clash on the clashes gonna teach you then once you have the thousand dollars to start working your debts off smallest largest, do you have any debt? Yes. I do. I will calculating it. I have about well my own. I think I have about twenty five or twenty to twenty five. Who else would you have? Well, I have my mom's car that I'm driving and paying for month way. She let me hat. We'll let me have you to drive and your car payment purchase paying for your mother. So originally, I was putting down two hundred dollars a month for it. And then recently, she wasn't able to cover other part of it. So I'm paying three hundred and fifty one dollars a month for it. Fifty one dollar car payment of you don't. But I I don't really know. What else I should do about it? I think we're gonna take two thousand dollars of your severance pay him by car for cash. No payments. Yeah. Let your mom and let your mom sell her car. Okay. I'm talk talk to her about that. Let's see what she says. Care what she says Darlan, it's not your responsibility to pay for her car. True. Obligate it 'cause she does help me out with the car. But she bought it for you know, it was her car. Sheen by for you. She wasn't helping you out. She letting you or helping her out you took over her payments because she didn't want her payments anymore. Yeah. Yeah. It is true. She needs seller car. Okay. So now, you got no car payments. That's good news. Now how much other debt do you? Have you said twenty five thousand? Yeah. Twenty thousand I think it might be a little bit less than that. But out about twenty thousand student loans, and then I have about a little rate hundred credit cards, and then I do have some like Stephan collection, but I'm gonna pay off as well. The back taxes too. The credit cards and the taxes probably next. We're certainly going to cut the credit cards, but you can wait until after you get in the class to do all of this. If you want, but it sounds to me like what we're probably going to set a thousand dollars of the seven societies baby step one. We're gonna start getting ready your debts, which is we got to get your car for two thousand dollars and get rid of your get your mom to get rid of her car for her. So she can get out of those payments. You can get out of those payments. Did y'all are stuck in a mess of that car? And then. And then start listing your debt smallest largest taxes. Always go round at the top of your debt snowball, anyway, glow credit cards student loan are those taxes and then work your way through the rest of it. Sounds to me like do it all after you get in the class. Thank you for joining us, America. Glad you're with us. Open phones. Triple eight eight to five five two two five. Diana is an Orlando. Hi, diana. Welcome to the Dave Ramsey show. Hi. Hi, thank you for taking my call juror. What's up in your world? Well, I just had a baby six months ago. Yes. Thank you. And we bought a house a year ago without those specific plans. And now, I'm considering leaving my job to stay home with a baby. And that puts us two thousand dollars upside down on our budget. However, the only debt we have is mortgage, and I have saved up eighty thousand dollars. Just in my accounts. So my question is should I use those money because I'm planning to go back to work for the euro two. Or should we sell the house and downsize because that's the biggest expense would have right now. Is your household income now? Well, right now with both bring seventy five hundred dollars after tax each I'm on I'm on you get. You get out together. Yes. Each is thirty eight hundred dollars a month. Okay. And and are your both about half of that? As you. Correct half is exactly me. Yes. And show you make about forty five thousand dollars a year and your house is how big eighteen hundred dollars time. We have a five bedroom house because I have two step children as well. They live with us part time. So we've got a bigger house they different sex. You know, Warren, girl different rooms almost teenagers. So we made a decision year ago to instead of living in town house in Renton to buy a house. So my husband is also up to his ears in alimony and child support that I'm already counted for that. But I'll give you that number. So after all this. That's how much bring so much. You have other than how she said. None right. None. Okay. Carta space for credit cards with pay off every month. Okay. If you quit your job and come home. This house payment is now roughly half of his own pay. Yeah. And obviously that's absurd. Yeah. And so you've got eighty thousand dollars saved and you're going to subsidize you not working out of that eighty thousand right? Yes. You're gonna burn through that in order to keep this house. Exactly. Okay. Where are you going to sell the house and move down house dramatically? Okay. Either either rent or buy something smaller? Okay. So we need to set your emergency fund aside, and we'll call that twenty thousand of the eighty just for round numbers. Okay. So do you have an emergency fund? In addition to the eighty now that okay? All right. So now, we have sixty thousand dollars to burn through at two thousand dollars a month. That's thirty months. And in two and a half years. You're going to have to sell this house or go back to work, and you will burn through sixty thousand dollars. That's the thing. I want to go back to work when my baby's three. I feel like the various first years is important and the job we work very demand. So it's a big decision. You got you're you're you're not gonna have the money to white that long. Because you got thirty months that's not three that's two and a half. Yeah. When you have the baby six months ago. Oh, there will be three. Yeah. Okay. So that on their third birthday, the house is either sold or your back in the saddle kiddo. Or your husband or your husband has doubled his income? I don't care. He is working on. He's been in interviews. He's looking forward. Very, but you see what I'm saying. Here's the thing. You cannot plan. You have to have an end to this. 'cause this car is going to hit the wall, and it's gonna disintegrate mathematically, suddenly when this money runs out. And then you're gonna look around wonder what happened, and there's no reason to wonder what happened we can predict it. It's a very predictable thing thirty months from today. You're gonna be broke and have a house payment is fifty percent of his income. So if one of three or four things hasn't happened, you're going to sell the house. He's going to double his income or your back at work thirty months from today your child's third birthday. He saw right. Something is going to happen. So let's just go and put that on the calendar and put it on the refrigerator, and let's keep talking about it and working towards then thinking. About it. Because I don't want you to start looking for a job thirty months from today. If to start looking for a job two years from today. Or put the sign in the yard two years from today that way, you got six months pad here in this thing doesn't melt down on you see what I'm doing with this math to send you a math question. I guess is you know when house. The house that you love the house this much. Not really, no. I know you might want to sell it move down. It would change these numbers dramatically. That's what I'm thinking. One. Is. You know, the good time to sell it. My husband doesn't get the income. Again, how much are you willing to fight to keep the house? How much do you love it? If you love it a lot. You got thirty months. I don't love it just talking to you right now right now, I don't love it at all. If I'm you. I'm moving down in house because I want more margin than this. I don't want burn up eighty grant. It's too hard to put eighty grand in the Bank, and you're just going to set fire to it here. Just gonna put out in the middle of front yard how bonfire they thousand bucks. And that's what you're doing. That's okay. If that's your choice, and you're doing that in order to be home with the baby and keep this house, but you can be home with the baby and being a different house, and the whole thing takes takes a lot of pressure off of this. Because these numbers are really if you didn't have the thousand in the Bank, it'd be it'd be over. We'd be putting this out for so right now. It wouldn't be wouldn't really be a question anymore. The only thing that gave you that option is do you wanna burn up sixty grand in this guy, sixty of the eighty so high interesting question, go talk to you. I'm glad you're making the I'm glad you're making the decisions on purpose before it blows up on you. So you're being very wise in that regard. Good job, Chris is whether in Green Bay, Wisconsin. Hi, chris. Welcome to the Dave Ramsey show. I Dave good be here. Good to have you. How can I help? Yeah. So I've been listening to radio show for about six weeks here and got your your book, total money makeover and very site about all this. But I do have one question regarding my circumstances. I'm a Christian pastor. And so I live in a shirt and a church Parsonage. Sure, that's part of my compensation that they have a home for me commitment. Cool. And then in addition in addition, my now nation has a very strong pension plan at fully-funded fiscally sound that'll pay me. Eighty percent of my my income when I retired atlas. So yeah, it's wonderful. So given those two facts what does what does base that's for five and six look like for me. Well, five is kids college. We haven't discussed that. Are they furnishing college at your denomination? They do not. You're going gonna be saving for your kids. College stepped forward saving fifteen percent of your income. I would still do that. Because in addition to your pension, you need some other monies. An additional nest egg in the house of the wise or stores of choice food oil. It says in proverbs wise, people save money in then as far as baby step six goes. Obviously, you don't have a home to pay off. And we don't want you to buy a house when you've got a Parsonage, but some day you're going to retire. And you're not going to be in that Parsonage, and you're gonna need a house, right? Right. So I might make baby step six saving to pay cash for my house fund in the future out there somewhere. Okay. Like when I retire. I'd like to have five hundred thousand dollars sitting there to just write a check by house. Got that'd be the same as paying off a house only, you're paying it to yourself and your to do that. 'cause you're living in the Parsonage as part of your current compensation. But good question and sounds like you got some wonderful benefits as part of as part of that particular denomination, very well, very well done. Very good stuff. Hey, thanks for the call, sir. Thanks for serving the Lord. This is that I've Ramsey show. If you haven't heard the every day millionaire book came out everyday millionaires. How extraordinary how ordinary people built extraordinary wealth and how you can to buy number one bestselling author, Chris HOGAN, and guess what he has another number one on his hands. I'm sure we'll know in about a week the official tally of that. But this book is on fire. He's on book tour he was in New York on Monday and Tuesday today is Chicago, and we're going to check in with Mr. HOGAN, so first days, man. How's it going? Oh, dave. I am still rocking and rolling high energy other meeting people talking to people about the book getting information in their hand. I'm still fired up and ready. Very cool. So you got to some really good shows are in Chicago today. I saw on the media list. Yes. I do. With a fantastic. It this morning been just finished up windy city live in a couple of segments with them took some audience questions. It's a live studio audience there. So the energy was high and down about five radio interviews with a few of our Philias all around the country. And I think the Rachel Ray episode that you tape is airing today. It did I've seen comments coming over on Twitter. And of course, mama Hoke. And she was proud. So that's always a good side. Yeah. Yeah. If mama HOGAN is a proud and Sharon watched you my wife the other day for those of you don't know share may know, shares my wife, but Sharon watch y'all FOX and friends and the staff was laughing because I told them Monday morning staff meeting. Sharon after watching that she goes, you know, I'm gonna read that book as as opposed to win. I write one HOGAN. So there you go, man. All right. So pass the mama HOGAN test pass the Sharon test. This book is going to be big. I'm just saying these both good signs for sure. I love it, very cool. And you got a book signing tonight there in Chicago Barnes and noble at Skokie old orchard. We're gonna be giving away a thousand dollars. They're sponsored by the Smartvestor pros in the area. No purchase necessary. Must be present to win. What times book signing the book citing is gonna be at six PM at Barnes and noble and Dave with giving away money. Yep. Thousand bucks there, and there's a one hundred two hundred people or so in the New York signing on Monday night. And so tonight is Chicago tomorrow night, you'll be back after tonight when you finish that you guys are gonna jump on the plane and fly down here to Nashville and do media here. And then we'll do a signing you'll do signing tomorrow night at our town hall and the town hall is the everyday millionaires townhall meeting from our conference center. That'd be about four hundred free. Tickets have been given out to the public here in our office space here tomorrow night, and then you'll be. Signing books with those guys that's going to be broadcast live on Facebook live on YouTube and to about sixty three ready are television stations all over America. And so we're working with the FOX seventeen people to cause that to happen. And it's going to be very Sinclair people. It's going to be very very very cool excited about that town hall. I am to date. I I'm excited for us to have an opportunity to more people about this on this making people aware getting them to believe that it's bailable American dream is still alive and failed the largest study of millionaires ever done over ten thousand millionaires. Chris and our team put this together we used airtight research techniques outside research firm to help us put it together. And we we have the absolute data points on what millionaires really look like that's important. If you wanna be one Chris out of the stats, and there's a bunch of them that we got out of that study when you're quoting them. With the media, and you're quoting them in these books signings. And when you're meeting people out here, what do you think is most shocking to people? You know, the fact about the. You know, this is something that it's too late blowing people away, you know, that it's not something that they inherited these people that built their wealth. And fails generation, I think the fact about income, you know, that you're not talking about people that are making big incomes and talking regularly everyday hardworking men and women that if they focus well absolutely seventy nine percent of the millionaires in the largest study ever done did not receive a dime of inheritance and only five and five percent receive less than a hundred thousand dollars. So mathematically, eighty five to ninety percent of America's millionaires are first generation rich, and that's not an estimate that's a statistical Dowd in absolute freaking fact, and that just blows people away because the media's told you over and over and over again nowadays with their ideology that you know, the only way you can get rich in America's be born with it or have a rich uncle, right? That's like and. Those are just miss those is it's not the truth and another that that people are actually gasping dates when I told him that ninety six years that they control the destiny that means they don't have it thinking these are people that are goal oriented and hardworking in when they set a goal. They look at TV ninety seven percent. That's all of them. It's right. I they control their own destiny. You know, what the sad thing is is you see we did do research as well. Asking the same questions on some of those types of questions with the public. And if I recall, it was fifty six percent of the public felt the same way. Correct. Yeah. Fifty six percent of the public feel like they control their own destiny. Ninety seven percent of millionare's felt like they did. So if you don't if you think when you plant corn corns, not gonna grow you won't plant corn. That's what that's saying. Right. Exactly. Right. So you gotta be aware of what you're doing. We've been helping people with money for Vinnie ears. We know fact when certain things over time, what's focus you get results. Now, why why would you why would you go to the gym and sweat? If you thought you were going to get fatter, you know, nobody would right. Nobody would go there because you expect a certain result. You think you control your destiny, and you act on the fact that you think you control your destiny, and you plant corn because you think you're going to grow corn that you put money in investments because you want to build wealth, and you're not waiting on someone else to fix your financial situation. And that this self. It's kind of a bootstrap kind of thing where I'm in control of my destiny. The belief system was one of the things that we found that we really didn't think it would be a strong as it is. But it's very very strong among these people. It really is. And not only do they have the belief they, but they also gaining their knowledge sixty percent using investment professional to be able to build their million dollar network. And they're taking actions personal actions are something serious about a very intentional. Very cool. Very cool, a great book signing tonight, Chicago, Illinois, Skokie old orchard area their own church center. I guess it's called and six o'clock tonight at the Barnes and noble thousand dollars will be given away at that book signing. No purchase necessary. Must be present. To win must be eighteen to be able to meet all the legal guidelines. We didn't make those up the law says that so that's how that works. And that's the way it will be so jump in. There say Chris tonight get your book signed if you're in the cargo area if you're in the Nashville area, come by our conference center. Tomorrow evening, will he'll be signing books there before we jump on the plane after that is over and head to Dallas, Texas, and of course on the. Dallas Texas on Friday night. Chris will be signing books there at the Lincoln, park, Barnes and noble. Giving away thousand dollars Saturday is the smart conference Monday. He'll be running down through Texas Houston. Austin? San Antonio Thursday is Colorado Springs Fridays. Phoenix a week from Friday that is and then Los Angeles, San Francisco, Sacramento and Seattle that is the book tour, and so this man's got three more two more weeks to go. He's halfway through the first week out here running and gun in making this happen. Chris we're proud of you can't wait to hear this another number one for you. You are getting after this great subject, and you are a great person to carry this message. We're very proud of you. Well, thank you ought to do with the team. And I'm excited to this people out there that each year that it's awesome over there. Absolutely. All right. Chris HOGAN, Ramsey personality. Number one bestselling author and author of the book everyday millionaires. How? Ordinary people built extraordinary wealth and how you can too safe travels, Chris, and we'll see you tomorrow, it'd be in the house tomorrow. And then we'll be with him all weekend as we do all of us all the Ramsey personalities are going to be at the sold-out smart conference there in Dallas. And thank you, by the way, over six thousand tickets sold for that. And completely sold out. Can't get a ticket. Now, it's gone, and it's a done deal. So we're glad exciting times around here people. Hey, you control your tests than the I love that message. Sure. Don't want be victim. Sure. Don't wanna be victim. Sure. Don't want to be stuck. We'll be stuck. No, no, you can do this. This is the Dave Ramsey show. Big is is Blake Thompson chief production officer for the Dave Ramsey show. This hour's up, but you'll find more on our YouTube channel where we have over six million YouTube views each month, you can find debt-free screams, millionaire hour clips, Dave, rants, and so much more. Go check it out. Hey, guys, if you're looking for real world, leadership and business advice from the top minds in business. Check out our entreleadership podcast. Hey, folks can Coleman here with love to have you. Join us weekly as we dive into conversations with the top minds in leadership and take your business questions to help you grow yourself your team and your profits. Don't miss an episode subscribe to entree leadership where you listen to podcasts. Hey, it's James producer of the Dave Ramsey show. This episode is over the check the episode notes for links to products and services you've heard about during this episode. Thanks for listening.

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