Choose Lasting Wealth Over Temporary Comfort

Normal is broken, common sense is weird, so we're here to help you transform your life.

From the Ramsey Network and the Fairwins Credit Union Studio, this is the Ramsey Show. I'm Dave Ramsey, Rachel Cruise, Ramsey Personality, number one best-selling author, and my daughter is my co-host today.

“Open phones here at Triple A, 825, 5225, Charles is in Seattle, hey Charles, how are you?”

Good, how are you today? Better than I'll deserve, what's up? I just wanted to get your advice, a long time listener, really respect your stance on just about everything. And got to two adults still live in it home, not really sure what they want to do with their futures and just trying to figure out the best way to stress it in the importance of financial independence, you know, especially if something happens to their mom and I, you know, how are they going to make it on their own? How old are they?

41 and 19, okay, so young, we're not 34, you're ahead of the game, Charles.

Yeah, a little bit, yeah, okay, so I mean, there's a lot of things you can do, I think the thing I would just do is just, I go back to my friend Andy Andrews, he used to say, we're not raising our kids to be great kids, we're raising them to be great adults. We're training them how to be great adults and so I would just have a conversation along that line that just says, hey, I'm your dad and I love you and the way that the 30 year old version of you is going to like you the most is if you get your crap together.

And so, and so I'm going to help you by doing a couple things, one is I'm your biggest cheerleader. Because I love you and I want you to win number two, we're going, you're going to develop a set of goals that has you as a stand alone household living not here within a few years. And if that involves you going to school, we can help you with that, if it involves you getting a certification and a trade, we can help you with that. You're welcome to live here for a period of time as long as you behave by our rules while you do that.

And but but we're going to set a target of what you want to do with your life and how long is it going to take to hit that target and at that point you're leaving. But yeah and just you know, so let's sit down and work that out and you get to help me you get to decide, you know, if you're 19 and you want to do two years or three years of school or four years of school we can we can talk about that that's not the end of the world is again as long as you're living by the value system of this household.

But but I just want you to have a target hunt because living in your mother's basement at 34 a is not going to happen and b is not good for you. I wouldn't make it either you feel that they have to figure out their whole life. No, just the next. Yeah, right.

“So what what is something that you want to do right now they can make a living, yes, meaning you can live somewhere else that's what make a living means.”

So what you don't do with this next stage of your life, not your whole life, but the next stage, what do you want to do? Set a goal. Have something you're aiming at, are either one of them doing any education. No, not right now just just working. Okay.

And so they're just comfortable. Yes, that's a great word. And they're not bad kids, you're otherwise you've been throwing them out anyway. Yeah. You just don't you just don't want them to be, you know, in their mother's basement when they're 34 and that's a good dad.

“Okay, so the always thing I think about is this, always think about the picture of the eagle, the eagle builds its nest out of the most grotesque six inch long thorn bushes.”

The thorns are six inches long. And then it meticulously fills the nest full of down to where the baby eagles when they're born do not feel a single point off of the thorns. As the baby eagles are born and start to mature the mother eagle systematically begins to remove the down from the nest a little at a time. Is this true? This is true.

It goes well with your knowledge. It's a little at a time to make them uncomfortable to the point that there is a point and that they don't want to stay because it's a nest of thorns and they stand on the edge and they put their little wings out and they fall.

All of the edge of the nest for hundreds of feet before they finally soar, but they would never soar as long as the nest is comfortable.

And that's an act of love.

Yeah, and to make it uncomfortable, Charles could just be an in-date and to make hate nine months from today or whatever, you know, we were going to have to make a plan for you guys to. Yeah, I think it depends on the kid, it depends on their earning ability, it depends on what the plan is. If the plan involves some education and you want to let them stay there while they're going to school or something to make it affordable. Yeah, that might be okay.

“Yeah, but making it uncomfortable doesn't mean you have to like start being overly.”

No, I'm not sure. Yeah, yeah, yeah. Not being a jerk, but you're just just reminding you that this is not how life works. Yep. And we're all going to come into agreement on that and your wife aligned on this Charles as she.

You're going to go along with him. Yeah, I think we just both want to do it's better than without being. Yeah, you know, you have to be mean or rude, but it's just this is the way it is. People grow up and they leave and so we want to help you do that. And that's the last act of parenting.

Because then I'll just have to be the parent of adults, which is the most difficult stage of parenting, by the way, because you can no longer tell them what to do. Now I just have to go along with whatever Rachel thinks she needs to do. So.

Just look, just look at me and smile.

I'm just saying it's great. Yeah, we've nothing's on fire Charles again. They're 19 and 21. I mean, I know. It could be a two-year plan of three-year plan.

Yeah, yeah, yeah. It could be a six month plan. Nothing's on fire. And again, I think you know the end game of what's good for them. But you start those conversations and assist them in play.

Set to help them to help them get there.

“Yeah, but the rent that you pay if you want to stay here.”

Ten minutes more as you start developing a plan that we ball agree to. That's your rent. And you will develop that plan or your rent is going to be in default on your rent payment. And that means you're going to move for sure. So you're going to develop a plan with an exit date.

But cause I love you. That's simple. And that's tough love.

Oh, God, I'm so tired of that phrase.

It is not tough love. That is just love. Yeah. This is the mother eagle being tough when she makes those thorns exposed. No.

Because that eagle sitting in that nest. First survival. Because I don't call you. Yes. You can't stay.

Yeah. You know, three adult four adult eagles can't stay in a nest. I mean, come on. Hello. And now Turkey's.

Turkey's can do that. It's fluff around. And eagle that fails to fly is called a turkey. That's what this works. Yeah.

That's a great question, Charles. I appreciate your heart. Yeah. And we don't recommend being rude or mean or nasty or something like that. Some cultures are more abrupt about this than other cultures.

Or the opposite. They're very much more. Yeah. You know. I mean, you can be with all the way over on one side of the spectrum.

Yeah. Yeah. They're all. Some cultures are more abrupt. Some are not, some of them live together.

They're all on. Yeah. But in an Anglo-Saxon. Saxon North American culture. This is our normal way of operating.

And it's the normal way of functioning in this economy and functioning. It's good for them. You know, when there's a 2425 year old living on their own. Paying their bills. All of it.

You are more productive. There's a sense of, yeah. There's a, there's a confidence there. Yep. That's your on your own.

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I'm doing good. Have a chat.

Better than I deserve. What's up? So I'm just starting to get into the day range stuff. And I'm trying to build my baby stuff because I'm getting married and no family. I'm trying to baby steps. Congratulations.

Thank you. My question is, do...

“Is it how you will save us better than a money market account?”

Because I'm trying to get it where my daddy has worked. His whole life. He's got an image. You've got to work till you 55. Then you enjoy your life. And I don't want to do that.

I won't do that. I won't do that. Then enjoy your life as I go on. Get older. I can appreciate that, Job. As long as you pay cash for it, we're all about that.

You get out of debt and stay out of debt. You'll have the money to do that. That's right. You're financing that idea that you just laid out and it would be a bad idea. But you're going to follow the baby steps you said.

But to answer your question, I prefer a high yield savings account. This would be more for your emergency funds. So that thousand dollars on baby step one. And then once you are debt free,

all of your consumer debt is paid off. Then you bump that up to three to six months of expenses. So we have a high yield savings account. A couple. A fair one is credit again.

Yeah, fair ones. Yeah. And I like it because you usually can get a higher rate of return slightly. Not significant, but it's there. Now, it does not have most of them.

Do not have the ability to have a debit card or write checks out of. So sometimes transferring money. You'd have to transfer it to a checking account if you needed to get to it. Yeah. But if it's all within one system like fair ones and you have a checking account with them.

It's fine. You can just move money from account to account. But yeah, but we used to have a money market account back probably 15 years ago. But we just we moved everything over to a high yield savings account. The biggest difference is not the rate.

The biggest difference is usually your high yield savings is going to be with a bank. And you've got those transfer capabilities. It's just easier to manage. But the rate might be not different at all. It's not that bad.

It's not that significant. It's usually a little bit higher with high yield. How yield savings account is probably a five or a ten year old product. Money market accounts have been around for 50 years.

And so, you know, when we first start teaching this stuff or like,

you know, don't put it in a stupid one percent or half a percent savings account. Pass book savings. They call it at your bank. Don't do that. And don't put it in a CD because you get penalties if you withdraw it because you're

Engine blue on your car. So use a money market account. And at that time, banks were starting to open these accounts. They called money market accounts. But they were kind of mirroring actual money markets.

It's just what they were doing. Most of those have been rebranded to high yield savings accounts now. And so it's basically CD rates that are fully accessible.

“And you know, that's, that's what the reason Rachel's saying that.”

And she's exactly right. Yeah, but Jeff, here's a go to FairWins dot org size ramsy. And there's the smart bundle. And so you can get that all, you know, take care of. And you can, you know, you're engaged.

You'll have your wedding since you guys open up one for a high yield savings account for the wedding. And put your names on it and start budgeting out of that. So you pay cash for the wedding. Megan is in Nashville. Hi, Megan.

How are you? Hi, I'm good. How are you doing? Better than I deserve. How can we help?

Uh, so I guess we'll start with that. Obviously, that's why I'm calling. I'm 50 years old. I've been going to a divorce for about four years now. It was finalized two years ago.

But I'm still. I need deep in it with financial stuff. What, why are you so deep in it after it's finalized? Um, because in the.

And basically in the decree, I was to.

Refinance or sell the house. Um, I tried to assume the loan twice. You can. You can't. You would not allow me to do that.

Well, they, they won't allow you to do that. Right. Loans are not a suitable. Right. Um, so I didn't qualify.

To refinance because, um, the money that he's actually supposed to be paying me. He's $40,000 in a rear. So what's called ordered?

“And what's actually going in the my wallet or two different things?”

So I didn't qualify to refinance. Um, so here we are. You don't have later. I'm still in the house. Trying to figure out like.

Well, if we leave this house, I don't know where me and the kids are going to go. How many kids? How many kids are more kids? I have three. They're 13, 17, and 20.

And what's the house worth? Well, without the problems, probably 500,000.

$70,000 in foundation work.

Who said that's the main problem.

“Who said I've had a well, there's cracks all over the house.”

I've had an inspection report. I've had an instructional engineer come out. I've had an appraisal who. Uh, he. My appraisal was about $120,000 less than their.

Because they didn't take a account with six on the house. So if it does have to be sold, if either had to be sold as. Okay. So 500, but minus problems. Okay.

And then what's owed against it? Maybe to 20. Okay. You're not going to like me. You're not going to like me.

Are you ready? I'm ready. So the stupid house. Yeah.

This house has problem problem problem problem problem problem problem problem.

And you're trying to. Because you're a good mom. You're trying to minimize the pain of the divorce. By letting the kids stay in their neighborhood and in their schools. Self-stupid house.

It's it's it's that's a good mom. But you're doing more harm than you're good. But trying to hang on to a dream that is died. And your heart is broken in your mad. And I don't blame you for any of that.

That's just major regular person. And I'm on your team. Okay. But that house is no longer a blessing. Right. Sell it as is.

Get out of it. Get your money. And go rent something in the same school district for a minute.

And get yourself stabilized and set up your life.

And that'll also give you the money to put him in jail if he doesn't keep the court order. Well, he's trying to put me in jail. He has me in criminal contempt. Actually, that's what's coming out of the house.

“That's what you need to put on the market.”

And you need to sell it. Not because of that. But because it's what's best for you. And then go ahead and have your attorney file on him for content for him to be in 40,000 dollars in a raise.

Right. Yeah. You need to put his head in a vice. And I metaphor school making. Like I make 25,000 year working at their school.

However, this schedule allows me to also go to school. I have my oldest is in college. My daughter just graduated. She's starting college. And I just graduated with my.

Associates getting ready to start my bachelor's degree. And you're married 20 years. Going through years. And I barely got four years of alimony. So that ends.

My daughter's child's fortunes. And two months. My alimony ends in two years. But he's not paying it anyway. So.

They don't end a leap. They get away with it. They don't end a leap. And we're going to make him pay it.

“We're going to use some of the proceeds from the house to make him pay it.”

I want to take all the teeth out of his case and put them all in your case. And you know, that this house does not represent the blessing that you were trying to create. The money from the house and the freedom from the financial foundation problems and the freedom from refinance problems and the divorce problems is worth way more to your family and your kids in you than the house is. Please let it go.

And she can't assume the mortgage, but so from a legal perspective, she has to sell it. Right. If it's in the divorce decree. No. The divorce decree said she had to sell it.

Yes. She's got to sell it to refinance. Yes. To make 25,000. She can't refinance.

Yes. And you don't refinance it on four years worth of alimony anyway. That's not. They're not going to count that on the mortgage app. It's not enough alimony.

If you get an alimony for 20 years in counting, child support for two years and alimony for four years is not on count. Because the mortgage company smart enough to know how you going to pay the payment when that's done. Right. You can't. So I'm making a rent for a little bit today.

Stay in the same area. Just go rent somewhere. And then you can and you'll finish your decree. Start a new career path for you. And yeah, it'll be a two year limbo two or three years with all of that.

But that's great. I mean, there's a part of me that I'm like, it's a fresh start. There's something to that. But I think is great for you. Your kids are going to physically receive the message that their mom is a fighter and a survivor. And that's going to do them more good than this house is.

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Don't be normal. Start every dollar for free in the App Store or Google Play. Jay is in Orlando. Hi, Jay. Hey, Dave, how are you? Better than I deserve. What's up?

Awesome. Hey. I got a quick question where it goes to. I just need a little bit of wisdom here. So my family and I were building what hopefully isn't forever home. And we would like to know, or at least I would like to know what we should do. What a current home should we rent it or should we sell it?

Okay. I can provide a little bit more. Okay. How are you paying cash for the new home? No, no, we're not. Then sell it.

Going to be fine now. Then sell it. Okay.

“Because you would not borrow money on the new home to buy a rental.”

And that's the same thing by not paying this off. It's the exact same thing. How much is the new house going to be Jay? It's going to be about 400,000. And we pay about 1200 a month for our current home.

It's about 160,000 dollars that we have left on it. Yeah. And the new home is worth what? Are the old home is worth what? 400. Oh, they're not about the new home.

Much is the new home. The new home is 400,000. Oh, how much is the old home already? About 350? Okay.

You're not exactly moving up a lot. Yeah.

I mean, I make a decent income where we're expecting our third child.

So we're trying to get extra room. My current home is not moving. I mean, you're moving up $50,000 in value. Yeah. Yeah.

It's the market here in Florida. It's insane. To build a new home. I'm saying that's not must.

“Most of the time when people move up in home,”

they move up hundreds of thousands. That's why I was curious. Okay. I'm good. I don't want to be houseboy.

That's good. I'm glad I'm happy for it. Yeah. But if you apply all that equity to this new house, you guys from a mortgage perspective,

I mean, you're almost halfway. Yeah. You're going to get that thing paid off. Yeah, fast. Quick.

Yeah. That makes sense. Yeah. The all the only things that we were, we wanted to start like a,

like a real estate, probably business to rent it out. Because we were looking at renting it out for $2500. Yeah. I would do that. I would do that only with a paid for property.

Thanks. Okay. Makes sense. Because it just gives you a lot more margin and a lot more rent. And the only other comment I've got is,

Jay, there's no such thing as a forever home. Until you get to heaven. Okay. Because it's just a steeped house and you're going to move. Okay.

The number of people that stay in a house 40 years in America today is almost zero. The average American moves every five point six years.

So I always giggle when I hear forever home.

Now, what this is is a very nice upgrade that your family needed. And it's a good investment. And I'm glad you're doing it. But if you, the problem is, folks, when you frame something is,

If you say we're going to be there forever.

“It's like someone saying, I'm going to buy a new car.”

But I'm going to drive it for 26 years. And that makes buying a new car smart. Oh, it doesn't still a dumb car. Okay. So, you know, that doesn't change the numbers.

So just don't use forever home to justify anything. Just say emotionally. We're ready financially to with wisdom by a nicer home for our family. And you are, by the way, Jay. And so congratulations.

Daniel is in Boston. Hey, Daniel, how are you? Wonderful. How are you guys doing? Better than we deserve.

What's up in your world? Okay. That's good. Yeah. So I got a few questions for you guys. Hopefully you can answer me. So I am a local for a union operator. So I'm getting offered a significant amount more going private than unionized.

So that means I'm not going to have health benefits.

I'm not going to have health dental and all that good stuff on this private company. But I'm going to make, so I make 115, 125,000 a year being a union. And the private company is going to pay me about 235,245. Okay. In what world is health insurance worth?

$100,000. That's that's my question. So not any world. Yeah. So is this a no brainer?

There's a no brainer. There's a company for it. $100,000. You bet. So no budget.

You can be stressed out about health care and that's not going to be a problem. I can buy health insurance policy. They don't furnish it at the end of the company. They do. They offer it.

But because you're out to pay for it. But that's fine.

It'll come out of your paycheck.

How much is it? Yeah. How much is it? I think it's so right. Well, as of my local.

No, honey.

“I mean, at your new company, how much does the health insurance cost?”

$100,000. So what is it? $17 a week or something. But that's not the new company. If you take the $250,000 job.

Yeah. Yeah. And then you have health insurance when you give them the $17 a week, right? Yes. That's correct.

Yeah. So what's there to be stressed about? I think that I'm not going to have it like dental health care. I just-- How many miles do you have for $100,000 a year?

You can buy a dentist and have him stay in your home. So this sounds like a no-brainer to take this opportunity and run. Yes. Yes. And your growth opportunity is going to be so much faster and larger.

Yeah. So what you're learning Daniel is that your source of provision is your ability to do electrical work. It is not the private company and it is not the union. Yeah. It is Daniel.

Yeah. You are the secret sauce. Yeah. And so if this private company turns up bankrupt in three years, you are still Daniel that knows how to do electrical work.

And you're still worth $200,000 a year in the market. Yeah. And so that's your source of provision. The union is not your source of provision. The negatives about a union is as they teach you.

They brainwash you that the union is all encompassing and they are your provider. And that's all bull crap. Okay. The union is really good at some things and being in a union many times as a good thing.

“But not if you emotionally accept that somehow that it's worth that you should take”

a $100,000 of your pay cut for dental. They're not that good. There's nothing about a union. That's that good. So no.

And here's the weird thing. You can actually go back. Yeah. If you hate this. Hey, here's from now.

If you want to go back. You can go back. Now you want to have all the pension and all that crap. But I mean, in the meantime, you will have made an extra $100,000 a year. $8,333 a month.

$2,000 a week more money. That's a lot of dental. It's a lot of dental. Well, I was going to say, I feel like his struggle. It's you have the fact.

I mean, he knows the facts. He can run the numbers himself. And then it's just this comfortable. Comfortable. Comfortability of.

I've known something for so long. Yes. To your point. Giving me a safety net. All of that.

And I have to step out of that. And that feels. But he's been told like the union health insurance is like the thing. The bomb. Don't lose it.

Don't lose it. Don't lose it. But dudes. Health insurance is health insurance.

That's all there is to it. And good for you, Daniel. Yeah. Well done. Congratulations, man.

I'm so proud for you. [MUSIC PLAYING]

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“And that's what Rachel and I were just doing a minute ago.”

Matt is in San Antonio. Hi. Matt. How are you? Better than I deserve.

What's up? So I'm kind of got. We're working the baby sister right now. We have about 105,000 dollars in debt. And but there's a lot of moving parts.

My son was diagnosed with autism. And he's just really having a bad time in school. A lot of behavioral issues. And so they recommended ABA therapy, which is about 30 hours a week. And so my wife who works nights and doesn't like her job anyway, you know, is.

She's also the main carrier of insurance. We think that she's the one that should, you know, step back to be able to take him and do that. I'm a teacher and I make about 60,000 dollars a year. And realistically, it just doesn't work. As far as everybody's concerned to make that happen.

And so I was wondering, so our house is highlighted about 580,000. And our. And if we sold it, we probably get, we all about 306. So we get around 250 after fees and all that. And then we could downsize and maybe pay for a house cash.

And so I'm just kind of stuck. I don't know what the right move is. And how old is your son?

How many kids you got? I've two.

“I've a 10 year old and a seven year old.”

I'm sorry, man.

Y'all are against it, man.

Wow. Did they know how long the therapy. How many years he'll be in that? That that extensive per week 30 hours. Did they give you a time frame at all?

It is 25 to 30 for at least six months. And then they re-evaluate from there. Okay. And this is who recommending this? He's a.

His therapist. Okay. He's a doctor. Good. Okay.

Because I'm just wondering if it's a decision. Something this big, like selling a home and a job change. You know, to me, all of it. If this is more short term versus making long term decisions, financial decisions. But if you guys are feeling, as I imagine you would, as parents, I could only imagine.

Just wanting to be present and just having one of us there knowing that probably the next couple years is going to just be a road. And our presence is just important. Right? And if you feel that from that long term basis, then that probably would be something to

think about. Yeah. We make money to do life. Yeah. Not life to do money.

Right. And so you got life on you. Mm-hmm. And so I think your decision's wise. I would sell my home.

And I would pay off all the debt. And if you can buy another home with a remaining money or a good down payment on a smaller home with a remaining money that will suffice for a period of time, this decision is not permanent. It is not a forever decision.

It's a two year decision. What do you say your wife does for living? She's an operations manager for a free company. Okay. Good night.

Good night. Mm-hmm. All right. And is she got a four year degree in business or something? She has a four year degree.

It's an interdisciplinary study. Okay. All right. Just thinking from a career track, she can plug back in. She'll be able to be a career for years if she needs.

Yeah. And so we might restart. So to speak, the house journey. And the career journeys in a couple of years. And they might look completely different then.

And you might have taken a step back. You might have taken a lateral step, because you cleared off all this 105,000 over the miscellaneous crap debt. Now, it is incumbent upon you if you do this, that you make it work. On a budget, no debt.

Ever.

“And I don't want to hear any excuses about old life is tough.”

And I went into debt. You'll screw this whole thing up if you do that. Yeah. Definitely. I think so one of the good things is about 45 or 45,000 dollars of the debt is the solar panels

on the house. Okay. They would take over the lease on that. So that would get rid of that immediately. Yeah.

And you got the other money in your hand to clear off all the debt. Now, you've got no debt except whatever you do for housing. And I would just view the housing. This is not a 10 year decision. This is a two year decision.

And it's perfectly okay to rent for a short period of time, like two years or three years while you're figuring out what life's going to look like. But at some point, I'm guessing that your wife will plug back into some kind of, should produce some kind of revenue. Could be worth a home.

It could be a lot of different things. But it's not for now. For now. We're going to take care of her baby.

“I think that this is the life's decision.”

Yeah. I would do it. And it's emotional.

But here's what I'm guarding against.

I'm trying to use certain language with you because I want you to guard against this. This is not a tornado didn't hit your house. This is a decision to sell one asset to clear the debts. And it's not a permanent decision. This is not a forever-thit deal.

This is what we're going camping in Europe for two years. You're not. But you know what I'm saying? Yeah. I want you to emotionally treat this very temporary because it can feel like, well, we sold the house

after we got this diagnosis. And that's going to be for the next 45 years. It defines us emotionally. You are not the single worst thing or best thing that ever happens to you. You're not defined by that.

Those are just milestones along the road. And so I really want you to guard against that because I meet people in these situations that are five, six, seven years later and they're going, well, you know, we got that diagnosis. And we sell the house and everything's never been the same.

Because they never recovered emotionally and never put hope and light back in their eyes

about their future.

Even inclusive of the things you're facing with this diagnosis.

And so I want you to see that. But yeah, in order to get to solid ground and get to some of the chaos out of our life, get your wife off of nights, get the debt gone, have the money to take care of the child. Y'all moving down in house. Yep.

I want to move into a more tent for a short period of time. Right? But it is just that. It's just camping. It's just for a short period of time.

And then you don't have to freak out about a real thing. Oh, because otherwise everything that you dislike about the next house is going to be magnified by your emotions. Because of it. Yeah. Because it's going to be some, I mean, that it's, you get pissed off about this stuff.

All of us do.

“And so that's what I want you to guard against.”

Yes. You will not. Technically, this is something to do. Yeah. I was going to say, you're not going to look up Matt in 10 years during the season.

And regret selling a home versus taking care of your kid. Never. You may look back. We worked our, we were not present. We were not there.

We were exhausted and he struggled for longer. Probably because we didn't have the capability in the time to put into what he needed to start his journey and get his tools. Right? So I'm like, it just, it's tradeoff isn't even. Yeah.

It's not even in question. It's just a house. It's just a house. Yeah. But also to your point.

Not to be stuck in a loop of.

“That that debt will be my emergency funds debt will be the thing that catches me if we need more.”

I mean, like, there has to be a hard stop or you'll dig yourself back in a financial hole, which will then bring on more stress from the financial side. So this is kind of a ticket in a great way. It's a blessing to be able to even make this decision. Yeah. I mean, people are facing stuff like this on the air here who have used it to rationalize really dumb decisions.

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I'm Dave Ramsey, Rachel Cruz, Ramsey personality. My daughter is my co-host today. Tiffany is in Cincinnati. How are you? I'm good.

How are you? Better than I deserve. What's up? I was calling to ask. My son, he's 11 years old, came across a baseball card that he's thinking might be worth some money.

His first thought was that he would want to sell it and invest. And I don't know where to start with that and how to help him. What's the card going to be worth? Well, he sold the same card for $4,000 on mine, whether or not his get so for the same amount or not sure.

But that's what he's hoping.

“So he was buying packs and one of the shows up in one of the packs?”

Yeah, he bought an old box from an antique store actually. Wow. Pardon it. Yes. This kid is fun.

I like it. He's the blast, yeah. Okay. Rachel and I wrote a book and we'll send you a copy of it called.

It was her first best seller called Smart Money Smart Kids.

And in that book, we tell people to teach their kids to do four things. One is to work and this is his work for the purposes of this discussion. He's a very entrepreneurial. I love him. And two is to save three is to give and four is to enjoy.

And all people should learn to do those four things with money. You can give, save and spend wisely. Okay. And so we would tell you to break this up. However, you guys want across those things.

In other words, I would not invest at all. I would give some of it. I would enjoy some of it. And he's 11.

One way or the other.

There's not four million dollars.

It's four thousand. And so the lessons he gets from it will be more valuable than the actual money. Okay. All right. Great.

Thank you. And break it down that way.

“Now, if you want to invest more than one thousand dollars, you could sit down with a smart”

Vester Pro. And there's some mutual funds that will allow you to open an account for one thousand dollars. Or less. I probably would not, or more. I mean, I probably would not do that.

But if you want to, you can. And here's the reason I wouldn't. The reason to do it is not the investment. It's to let him have the lesson of how mutual funds work. Have the experience of sitting down with an investment professional.

Because this kid's kind of got it on the ball. This is a sharp kid. Thank you. He's a kind of kid that would enjoy sitting with an adult. He just bought some baseball cards.

No, I don't know. No, I'm just telling you. To look at some Excel sheets. He's in an antique store digging through this. Yeah, so I'm just saying.

No, I bet he's great. I'm like, I'm giving him more time. Oh, he, he, he keeps on top of our envelope system with me. And he's pretty on it. Yes.

He knows. We know it's great. We, uh, I have a nephew of my husband's side. The family were actually just talking about this the other day. Because even from an app perspective, you know, looking at the S&P 500 and putting some money

and watching it, go up and down and you're watching it.

“The whole correlation, I think is is so good to learn around his age.”

So for him to have some like visual perspective of the money if he does good. You know, maybe you say, hey, for 1500 bucks, let's put it in an index fund or something and we have an app and we can watch, you know, watch it grow. And it loses, you know, $79 one day and I don't know. It just kind of, it's a, it just happens when Trump bombs everything.

It's a, it's a fun exercise to like see reality, right? And even though we teach investments for the long term and you're not going to, you know, obviously pull money out and that kind of thing because of what's happening. But for them to have some skin in the game and watch in the market at a price like that, I think is great.

It's, but it's all about the lesson.

It's not about 1500 is going to make you maybe $8 million when he's 65.

Right. It actually might, but it probably won't. Okay. That's not the reason. No, no, but that's some really good thought.

It's just a lot of parenting going on here and she's a great mom. Hang on, we're going to send you a copy of that. Um, the other thing that popped into my head, um, what was that actually what we did was two things about those, those subjects. One is we had your college funds and mutual funds.

And so it wasn't your skin in the game as hours. But we, by the time you were that age, we would get out and show, okay, you have this many shares. And it's worth this much a share. And if you multiply those two numbers, you have the actual value of that mutual fund. And so I've got a hundred shares at a hundred dollars.

That's a thousand, I mean, that's $10,000 worth, okay. So you start to look at that and go, okay, $120 a share. And you start to, like you said, they get the lesson on the next month. We would get the paper statement in those days. And we would open it again and show you guys again.

This is the college fund. That had the benefit of showing you how mutual fund worked. So we brain-bossed you and said, you're college-funded. So you just assumed you were going to college. So that was a good thing.

We didn't have to have a discussion about that.

You just always thought you were going.

And so you went. It was amazing. And the second thing was we actually did not take any of your all's money and invest it in anything. Instead, you guys had to buy your own car. And so you had your miscellaneous birthday money, children's savings account at the bank.

Yep. If you worked a little bit and baby set, you put some money in. If you got to hit the lottery on a baseball card, you put some of that money in. And we matched, we had 401 day. We matched whatever you saved up to buy your first car.

“And so, you know, if I remember you saved about $6,000 and $8,000,”

we got a $16,000 car. A $16,000 car in those days was not a bad car at all. That was a great car. You got a nice little being done with it. That was a me through most of college.

Yeah. A little 323 BMW. And it was a great low car. And so that money and Tiffany's question, if it was at the top, it would have gone in the car fund. Yes.

There would not have been mutual funds. No. Wouldn't it have done any of that? No. But we had other ways we were teaching you the other way.

To feel it, yes. None of those are wrong answers. That's right. That's right. Some of the answers.

Yeah. And I have an 11 year old. And she's working some of the summer. And actually we just opened. Two weeks ago with fair winds.

You can get up to 10 high old savings account. So under ours. So we opened up another one. I put a little seed money in just to kind of like, hey, let's just make it a little fun. And then yeah, and we're paying her.

She's done some babysitting. She's done a couple things.

To help out.

“And we do and I, I want and I show her as we transfer money into that same news account.”

But we're talking about the card now.

And she's 11. But I'm like, girl, you got. Yeah. I mean, and if you want one at 15 with your permit to practice. You got four years.

To save. And so that jump start Tiffany for his car. Honestly, that could be a. It's a nice jump start. Yeah.

That's a love it there. Yeah. And so moral of the story is when there are 11. The Ramsey's.

We send them to the salt mines.

And they we correct the whip on. Child labor. They have to go to work. They bring them. We bring them to Ramsey.

And we work them like dogs. No. No. Not. No.

It's a great environment. Everyone's been so kind. She's here today. I'm going to help him out. Doing some work.

It's good. It's good. Yeah. But yeah. And that's what I mean.

“This guy, this young guy is initiative to go to the antique store.”

To scratch around in his hobby. Something he's passionate about and digs out this car. And legit. Emily can get some great money doing that. And thinks he's got a $4,000 hit.

That's awesome. It'll also make him go do it again. Yes. And again and again and again. Especially if you get to enjoy some of it and have the joy of giving.

The joy of giving some of it. And so give some away. Always give some away. Money's not much good if you keep it all. Hey guys.

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Hattie is in Denver, hi, Hattie, how are you? Good thing God, how are you? Better than I deserve, what's up? My husband and I are wondering if there's ever a reason to take out a business loan. If you feel that it would be paid back by the business in a sustainability amount of time.

We've fully paid for, like, we're debt free and we're working on paying off our house. Good. And I run a small niche religious home day care. And it's the only one of its kind in the state that's monetary. And I can only take forward children for legal reasons.

But if we are able to do construction and finish the code all the issues, I'd be able to take up to 12 children, which could be conservatively $8,000 a month. And hire, if I fill all those 12 spots, I currently have a weight list with nine kids on it. And so we're just wondering if we took out the construction cost salary as $25 to $30,000.

“So if we took out a loan for that, that could be paid off within three to six months, would that make sense for us?”

I don't borrow money, and I don't teach people to borrow money, especially in business, because it represents risk. The way you've outlined this makes it sound very, very reasonable. But you've only outlined it if it works. You didn't outline it if it doesn't work. If the contractor's a crook, and it gets delayed eight months, and it takes forever.

you haven't thought about any of the things that happened to all of us in business every day. There's three rules of business. One is it takes twice as long as you think it's going to. It costs twice as much as you think it's going to, and you're not the exception. Those are the three rules. And they happen to me, they happen to you, they happen to anybody that's in business. And so, you know, it could unfold the way you designed it, but I doubt it will.

Not because I'm a pessimist, not because I'm cynical, but because I've run a business for 35 years.

And it never works exactly like I'm freaking think it's going to work. Ever.

And so, and I have a great idea in the shower every morning. And most of my ideas suck. By the time I get them to market, I lose money on 90% of them. But I made really good money on the other 10%. So it's all worked out. I want you to grow your business. I love your business. I like what you're doing. I think all of that's good. I just don't want you to put it in jeopardy for $25,000.

How much savings do you have? Yeah, so, okay. So yeah, we have about 25,000 savings, which is our three to six months of expenses. By your house, I'm very nervous.

“Not busy use that. Yeah, that's what I'm saying.”

And what is your household income now? So we make about 97, 100 a month. I do have, I took on a weekend job to try to make some more money that it brings in extra 1,000 a month. That we've started to save for the construction.

And what does it take to operate your household?

We're pretty close. We do send our kids to private school or religious private school. And we don't want to cut the money there. And it doesn't take to operate your household. Yeah, we're about 9,500.

Why? What's your house payment? And so the private school fees are mortgage is $31,100, which we don't think is so bad for our area. That matches even renting in this area. But our school fees are the biggest expense for our kids. How much are they?

It's about $2,000 a kid per month. $4,000 a month, $50,000. Yeah, yeah.

“That's a fine school. So very expensive.”

It's not just religious. It's expensive. There's lots of religious. Yeah, it's an expensive religious school. Very. Not very.

No, it is. Well, it's $1,000 a year. Yeah. Well, for two kids in private school, Nashville, that's. Yeah.

That's what it was. Anyway, the, I'm not suggesting you take them out. I just, it's, it's more than your house payment. So you just need to, you really do value this.

And she runs a day care with it. So it's obviously a core part of there. Yeah. So what I'm trying to figure out is, is there a way I can take 15,000 of the 25 and add another 10 while constructions underway out of my cash flow?

So, yeah, because we can add about a thousand a month that we were seen by the time you wait a year and a half. Now, I'm thinking, I, I want you to wait a year and a half. I'm going to start construction. If I've got a way to get to the 10 by the time of the construction's complete,

“how long does it, how long is the estimation on completing the construction?”

Six weeks. Six weeks. It's not a big project. It's just, it's silly things like a emergency escape window, the flooring drywall.

It's like very deep. How many bins have you gotten on the construction? I got three. So the lowest was closer to 25, the highest was closer to 40. So I'm averaging 30 based on like, you know, what everybody's doing.

I don't think 25 would be realistic because he said it always.

What we would do at the Ramsey House is we would use some of the emergency money and maybe to 10, maybe 15 of it. And we would find the other 15 very, very quickly by drastically cutting stuff and our monthly budget because we would want to do this. And we would not go out to eat.

We would not go on vacation. We would sell some stuff that was laying around. We'd look up and go, I don't need that over there. I don't need that over there. And you're, you're seven.

Yeah, that's right. Okay. But I, I'm going to do anything I can to get my income up and my outgo down and cash flow it. And maybe I get this done. But no, I'm not going to tell you the borrow money. I'm going to beg you not to.

You're going to make much, many more mistakes when you borrow money.

They're going to trade leadership.

“And I always teach those men and women in those businesses”

that when you take your next idea and you borrow into it, you're going to find the size of your mistake. You magnify the drama. You magnify everything. And it's so weird that when you're dealing with a contractor with money out of savings,

you handle the contract different. Contractor different.

Then you handle it if you're using the bank's money.

Because it's like real freaking money. It's very emotional. And so all of those are reasons to the borrowers. the borrowers slave the long options are very different. When you're like, "Eh, is it like five or six-grain more or less fine?" With the loan perspective, it's like, "Okay, maybe we can

this, that five or six-grain and this is like heck no, we have a tightened up budget, no, get the cheaper floor." Right? Like, limit your options in a good way and help you make those decisions. And what of this can I do to get to the increased capacity? And then what of this was,

“luxury, like, what do I really have to have to have this rehab do I have to have to function?”

It sounds like she's done her work too. I'm not questioning. I'm just saying that's the kind of stuff

I'm going to do. I'm going to minimal functional. And also, your business is daycare, which is always

needed all the time. So if you, you know, if you couldn't get all of this done in the next six to nine months because you're saving and moving in as much as you can. It's going to be okay. Like, you know, you're going to be able to recoup that money because there will always be a market for daycare. Yeah. You don't always have a waiting list. Yeah. And the fact that it is, so it's kind of a one of a kind type of daycare is the way you explain it with the, she mentioned the religious piece,

the Montessori P. All of that together is great. It makes you unique. You're not just another one out there. And I think that's awesome. So always have a waiting list. Yeah. You're always able to do that. But I'm, I promise you, you will not regret going a little bit slower and doing this with real money. You won't regret it. It's harder, but it's easier. It's much easier in the long haul. It's much more sustainable. Your business will be open five years

from now. You won't be taught calling me up going to tell me some contractor stories. I'm not I want to hear. , this show is sponsored by Better Health. Summer is here and whoa, everything changes this time of year. The kids are at a school, routines are out the window. You're traveling more, probably sleeping less. And if you're not careful, you and your family can end up running

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in the description if you're listening on YouTube or podcast. Have you, have you switched your

“example if they play bridge? Just because mom plays bridge now so is that what makes you think?”

I've got these things stuck in my head from random location there. Uncle Charlie goes to church with you or whoever it is. You added bridge. Is that a sign-in? No, no. Yeah, but you don't want to pick. My wife's bridge partner is not how I pick a real estate agent, not a chance. Or my son. Good with math, but that doesn't mean there need to be my real estate agent.

All right, Jerry isn't Atlanta. Hi, Jerry. How are you? Hey, how are you doing? Good. Good. How

can we help? Well, I am $55,000 in debt and I'm trying to figure out a way to get out of it and I don't make enough to cover it. How much do you make?

“A month fluctuates between $1200 to $2,200 a month. Why, what do you do?”

Right now work delivery gigs. Why, why don't you get a job? I had a job. So I've been in the rest of the business for 12 years. You've been in the business for one moment. I'm sorry. What business? Where's the restaurant business? Where are you doing at the rest?

I don't know. What did you do at the restaurant? Jeff Cook, this washer, front house, back house.

Hello, Jerry. I am 36-year-old. Okay. All right. So your problem isn't income problem. I think you already knew that for you called, right? Correct. You don't make any money. You're at the poverty level. And that's not a put there. It's not, it's a mathematical observation. So what are we going to do to fix that? And then we fix the other thing? Well, the hope was to better my career. So I went into automotive and I became a certified parts specialist. And so then I've worked my way

for the year six years as I got a job working with you whole. And that was great. And those things was like 24, 2500 a month. Just enough to pay my bills, pay my rent, and everything. And then I was told there's other jobs out there that can make more 1200 a week versus $650 a week. So he got in touch with me for the other people and I got in touch with them and it gets told me that they would have a job for me available as long as I had a truck available to use as my own.

“And that's what I did. I went mad and pushed the gun for it and got it in truck. And now I don't”

have either one of those jobs. So how did you finish the recruited by somebody who promised you something that wasn't true? Right. I think it was true. It's just the economy that where it is, gas went up. And last time I talked to him, he said he was having to make these deliveries themselves. So he picks up motorcycles and sell them. Yeah. He promised you something that wasn't true, honey. You didn't make them. You didn't make them money. You were promised for whatever reason.

Okay. So let's go back to where we started and say, where can we land now after that mistake? Because that was a mistake. So now where do we go to go make $3,4,5,000 a month? What do we got to do? And you asked, "Are you certified parts specialist? Does that set you up to work at autosone or whatever?" It does. And what does that pay? $35 an hour. I see autosone doesn't pay that much. What does it pay? $16,17 an hour. You make more than that without a certification at target.

$20 an hour is going to rate at target. Just working up there, moving boxes around. You know? So, or UPS or something? I don't know, Jerry. Is there just anything that you can just plug into? So what I want you to answer to your question is you have an income problem, not a debt problem. Your debt problem is the result of your income problem. And you're not making enough to even get by. And you've defaulted back into this for some reason and have accepted it. And I don't want you to accept it anymore.

until you get your head above water. And then you try to get a good job out of those six jobs.

And you keep working and working and working until you move somewhere. And I want you to aim at something to where when you're $46, 10 years from now, you're making $7,000 a month minimum.

“Now, what is that? What is the track? What is the journey that takes you there, step by step by step?”

You're probably not going to jump from where you are to there in one leap. But you can begin the steps, the certifications, the thought process. I mean, the auto industry is in general. The can't go with that. I'm like, you can, you can get a lot, do a lot.

It pays very much. Yeah. Yeah. And so, and it pays, auto zone, whatever they pay, pays more than

you're getting. So that's not a bad step. But I don't know what a certified parts guy person is able to do. I don't know how that works. But I assume you work in a parts department at a Chevrolet dealership. You would make more than you're making now. And maybe more than you would

“make it auto zone. I don't know. But that's what I'm going to start looking at it. I'm going to start”

looking at that like every minute of every day. You don't have time to do anything else except that you are starving to death. And so, go get you some food. That's what this comes down to. A healthy level of desperation, urgency. And then, you know, and then what you land in something be very careful when someone promises you the moon. Someone who delivers motorcycles promises you to the moon. And my fear is when he said, do you, if you have a truck and I don't know if

the 55,000 is a truck is a truck loan for the job that he had to have. But making sure you stay financially, secure Jerry in these transitions is important too. So any sort of case you're putting you cash flow. If you have a big truck loan, like Rachel mentioned, sell it. Now, all right, Casey's with us in Pittsburgh. Hey, Casey, what's up? I think for having me. Sure. So my question is, my husband and I are on baby steps 5 and 6. Good. We got a little bit of a

late start to saving for college. So we have two kids. They're 10 and 8. And we really just started. So we, we through like 2500 and each of their 529. But we currently are paying an extra $500 a month on our mortgage. So we can drop it from 30 years to 20 years. So I just wanted to get your take on how much should we really throwing all of our extra money at our kids college to find like a four year in state tuition or should we keep splitting it where we're putting an extra $500

on the house and throwing everything extra at the kids college. Have you guys mapped out tuition rates and what this $2,500 will be in 8 to 10 years? Yeah, so putting it into the calculator essentially had to get to pay for four years of in state and Pennsylvania. We would have to put like 1500 in per inch of them per month every single month. Yeah, which isn't going to be realistic. Right. That's not realistic now. That's right. So yeah,

I mean, what I would do is fund as much as you can with the reality of knowing you may slow down your house, paying it off fully just to get some more money and but then also remember scholarships, grants, working through college, cash filling it maybe as they are in it as well or all the options. And living at home and going to community college at first two years is an option too. Okay, guys, let me ask you something. What would it take for you to switch your bank?

“Because if you're still earning next to nothing on your savings, you need to check out fair winds”

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Jamie is with us in Indianapolis. Hi. Jamie, how are you? Good how are you? Better than I deserve. What's up? I need massive help on budgeting. How to get through it and how to keep from spending kind of out of control. Is the out of control spending because you can't stop or you feel like the life you guys have created or you've created is needing a high dollar amount because of the wind and all of it. Okay. How much you guys make a month? It's just my husband working. He's a truck driver.

“He makes roughly 5,000, 5,200. Okay. And that's what he brings home. That's what hits your account every”

month. Yeah. Okay. What's your mortgage payment? We don't own a house. We rent. Okay. I'm afraid to buy a house

just yet. Okay. How much is your rent? 1200. Okay. Yeah. That's reasonable. We're kind of dead you guys have. We have like four credit cards. We owe some stuff on like bills like we like didn't pay so we have to pay those and then we owe to like Verizon and we have medical debt and then I have student loans and then a car. How much does it all add up to? Around 24,000. How much is the car? The car? It's 8,000 21 or 19. But it was from a couple years ago so it's gotten repots and then

like I haven't had it in a year. Oh, so you don't have a car payment right now. You're sleeping.

No. After I started listening to you guys, I will not do a car payment. Okay. But you don't have

“a payment now. You have an 8,000 or a repo. All right. And okay. How much is your student loans?”

700,100. Okay. All right. Are you paying payments on those? Or are they into fault? Are they're into fault? They're into fault. I've probably like a month or two ago. I tried calling and going on the website and the girl kept telling me I had to wait because it wasn't in their system yet so they couldn't tell me if they could bring them out of the fault or I could start making payment. What bills are you behind? You made a comment that there's still bills. Oh, okay.

So these are bills from other places we've lived. Right now we're not necessarily behind on our bills but like these are we owe within debt is like progressive, Duke. And I said, yeah, there's not only two and Verizon. Okay. So it sounds like you got like 8 or 9, 10 bills floating around between all of that and the debt payments. Yeah. Okay. How much a month is going to all of that? To the debt payments? Okay. Right now because we do have an active credit card. My husband is

trying to pay that off but the interest on it is so much. It like isn't hardly going down. I make kids of you. And two. And you don't work outside the home? No, I don't want to. One is about turn seven. He isn't school. The other one is we'll turn five in December but I'm trying to get him into an all day preschool next year or this year so that I can work. Yeah, I can work

“very important. Okay. So let me tell you what I think I'm hearing and you can correct me if you”

want to. I want her my feelings. Okay. It sounds like you all are completely freaking clueless. You have no idea where your money's going. 5200 comes in. You aren't paying payments on the student loans. You aren't paying payments on the repo. You aren't paying payments on hardly anything except one tiny little Visa card and you can't even seem to pull that off. You have no idea where your money's going. Does that sound accurate? It's very chaotic and very stressful. Does that sound

Rachel? Yeah. Well, Jamie, I would sit down and look at where are your most

the highest dollar amount of expenses is going. So you can look category-wise. Look back the last couple of months and just see food. Is it restaurants? Is it random moments of shopping?

“Is it Amazon? Where is it all going? And then you have to make a realistic budget to say,”

hey, the way we've been living isn't working, which you feel that you feel the chaos. And then to say, okay, in order to have a level of control and this piece that you're looking for is that detailed plan that's going to strip back a lot of it. So I would go down the main categories. We'll get you every dollar for a year to bring the brain version to that, that'll attach to your checking account, Jamie. But I want you guys to walk through these categories and really say,

okay, if we had to limit it and we say beans and rice, rice and beans here at Ramsey, or if it's ramen, whatever it is, but cheap, cheap groceries, no out to eat nothing. That's the food category. What can we barely scrape by to make sure we still have food? And then you just kind of

go down the list and I'd like some light and water second. Yeah, your four walls, food,

“shelter utilities, transportation. Hey, this reasonable rent. Keith, stay current on the bills.”

And then I actually two thousand dollars will do all that. And I was saying, I bet you will find 15 to two thousand dollars after you live on nothing. You delete Amazon. You do nothing. Literally no spending money. No life. Yes. Your broke. And when you get real radical like that, you're smart enough after talking to your way to smart to be this broke. But you're just disorganized in chaotic. And you can fix that. So you sit down with this every dollar budget. We're going to

give it to you when you get off the phone. And then you send a send the link to your husband. Is he on the road? Um, yeah. Or is he in town? No, he's on the road. Yeah, send the link to him. Download this. You and me are going to look at this. We're going to decide what we are going to do with $5,000 this coming month. And then we're by God going to stick to it because I'm sick and tired of being sick and tired. The, okay, that's one thing. So I started reading one of your books

like a bleak eye to money. And um, I tried to like, okay, it says in the book, don't bring up your name as like a. Oh, I forgot. He said there's a brand who said that. Um, so I tried not to because I've just done that in the past and he didn't like that. Well, what I don't like if I'm you is being broke. And so Bubba who's out there driving a truck, you're going to freaking do this or your life's going to be miserable because I'm going to make it miserable. I don't care what Dave Ramsey says.

I'm tired of living like this. We're going to fix this, Bubba. This is you talking. Not Dave Ramsey says or the book says or there's an intellectual discussion here. I'm sick and tired of my sucky life. And we're going to fix it. And you're going to quit spending like you're in Congress on the road. And I'm going to quit spending like we're in Congress back home. And we're going to get on and control like your life depended on it because it does. You got to get the two of

you were going to have to get passionate. I don't really give a crap what Dave Ramsey thinks. That doesn't even matter. It shouldn't even enter into the discussion. But you know, you guys have got to get upset enough about this to attack it. Both of you. And as long as you just

dance around and go, well, I can't figure out how this you're going to not do nothing. There's always

a reason to do nothing and be broke. Look around America. Everyone in America does nothing in his broke. And they're sitting on their thumbs. And meanwhile, you can fix your life here. You can go do this. You're smart enough to do it. But you know, and Bubbles are going to come along. He ain't got a choice. He gets out there bringing home a bacon drive and good grind those gears, man. Send me a check and quit spending it. We're about to do this. Get it done. And you guys got to start having a

discussion with that kind of thing. Not where we're mad at each other. But where we're mad at this status quo, this mediocrity. And we're not going to live in it. Yeah. And it's going to and it's going to build a whole new set of habits for you guys, Jamie, because you probably have been used to being like, well, the kids need that. Just get it. It's going to change completely, which it should.

“You should have a 180 response to everything to get a completely different result of what you”

guys have been doing. Keep doing what you've been doing. And it's going to be hard. It's going to be hard. But I tell you that hard is much easier to push through than the heart of sitting of what you've been doing and sitting in that stress. And so there there is freedom on the other side of peace and control and margin. You just have to control that income. And that means usually saying no to yourself.

Ohio. Hi, Andrew. How are you? >> Oh, well, Dave. How are you? Thanks for taking my call.

>> Sure. How can we help? >> So my question is, should I go into debt with my father to double my income? >> So how long have you been roasting to the show? >> A little over here and me and my wife are on baby set 4 now. >> So what are we going to say? >> I know, but it's tough because so here's a little bit of backstory. Me and my dad worked together in the young semi trucks. And I drive this truck currently. It's worth about $64,000. And he told me that he would sell it to me on interest pre-payments

of $2,000 a month for one year. And that would double my income. So I'll fit a bit of a crossroads.

“>> Why do you have to buy it from him? Can you not just rent it or use it?”

>> Well, that's what I do now. But, you know, I would go from, I make about 30% of every load right now

to 72% if I actually own the truck myself. >> Gotcha. >> Why? >> Because he pays for it probably. >> Yeah, I think I'll rent it. >> Who's going to, who's booking your loads? >> Him. Is he going to continue to after you buy the truck? >> Yeah, that's why he gets that 28%. So I would make, right now, I make 30%. >> Well, right now, I make 30%. So he gets that 70% for booking and owning the truck. If I own the truck, I would get 72%

and then he would-- >> Oh, 28% for booking it, I see. >> Yeah, and using it's trailer and stuff like that. >> Yeah, yeah. Okay. Sounds like a no-brainer to the thing blows. >> Yeah, that's the other thing. >> Sounds like a no-brainer until diesel doubles because the straight of her music shut down. It sounds like a no-brainer until Trump decides to bomb somebody else and screw up the old supply. It sounds like a no-brainer until. See, you're projecting a perfect

“future, and that's the only way this makes sense. And perfect futures don't exist in business.”

>> Yeah, I mean, that's definitely fair, though. >> No, that's the truth. That's not just fair. That's the world you live in, the world I live in. Now, the question is whether you're going to admit it or not. >> Yeah, no, I don't do it. >> No, don't do this. It's crazy. Crazy and crap, don't do it. Your dad owns the truck free and clear. >> Yes. >> I have a counter proposal. >> Okay. >> I will rent it from you for $2,000 a month.

>> It goes towards ownership. >> The ghost towards ownership. >> Well, that's essentially what he would be doing. >> I know, this is essentially different. Because if things go sideways, he still owns the truck, and you don't. That's different if the dad gum engine blows honey. And guess what? Engines blow in trucks. Brakes go bad in trucks. Transmissions go out in trucks. Y'all wear them out, man. You run the road with them. You've not accounted for any of those things in this scenario.

“So, if you want to rent his truck and him sell it to you for a dollar after you have accumulated”

the $2,000 a month for what? How many thousand $64,000 was it? >> Well, that's what it's worth. But he said he would give it to you for $24,000, so $1,000 a month. >> Okay. >> So, I'll rent it to you for $2,000 for $2,000 a month for one year, and you sell it to me for a dollar. Same thing to him, right? >> Yeah, fair enough. >> But the truck is his. >> It's not your right. >> Until the purchase price. >> And if the world falls apart,

you don't know your dad, $24,000. >> Yeah, that's the kind of second part of my question is,

us being on baby set for, I mean, I have the money to buy it free and clear with that $24,000, but basically it would leave me with really nothing left. >> Oh, so that's your emergency fund? >> Yeah, right. But how much do you make a month, Andrew? >> About 6,000, but if I bought it, it would be around 12. >> Are you married? >> Yes. >> What does she make? >> She's a part-time nurse. She makes about $3,000 a month. >> And you've got kids? >> Yes, three. >> Okay. And what do you drive during the day?

>> Like, as my personal vehicle, paid off truck. >> Worth what? >> Probably about $10,000.

I would do that. >> Okay. >> And then, don't worry. >> You're not going to do that.

All of a sudden, this idea doesn't sound so good. I just sold his truck. >> Yeah, but if he doubles his income, like what he's saying, he can say. >> Yeah. >> If it's worth it, it's worth it, man. >> 10,000 bucks, 10,000 bucks, and two months. >> Worth it till I sold his truck. >> Yeah. >> Drive a $500 truck because you're not driving it anyway. You're driving a semi-honey and go pay cash for the sucker. Oh, but now, now we got down to it.

“See, borrowing is now a convenience in this discussion, not the only way to expedite the idea.”

So, you can either rent the truck for one year and buy it for a dollar, but I wouldn't.

I'd pay cash for it and start making my money now, and I'd say a one car. >> I'd say a one car.

>> Yeah, be a one car family for three months. >> I get you a $500 hoopty, yeah, whatever. Well, I mean, for one month and get you a $5,000 truck, I don't know. It's not going to be much different. >> Right, yeah. >> [LAUGH] The voice tone changed. >> It's awesome. >> Jack is with us. Jackson, Jacksonville, are you, Jack? >> Bill, how are you doing? >> Better than I deserve, what's up? >> Hey, so I've got a question about my retirement.

I got to make a decision in which direction I'm going to go with it. So, I'm coming on a 401(a) plan. I work in public safety. And they're matching 25% into it, and I have to contribute a mandatory 10. So, 35% of what I make goes in. The option, I have to go to the starting next year would be a state retirement, which is more defined benefit versus contribution. Retirement is not the same. I already have five years on the state retirement from a previous job.

“So, I'm trying to figure out which way to go. I think I can retire okay both ways, but”

I don't want to make a $1,000 mistake. >> It would be about that. So, you stay with the 401(a). Why don't they have 401(a) as well? Most states do. >> It just because of the central work for a city, they had a city tension and they switched it to 401(a) and then they'll give everybody a one-time chance to go to state retirement next year or stay on the 401(a). >> If you put 500,000 or a million dollars in this or you put some money in it and it grows

to 500,000 or a million dollars and you die, your airs get the money. If you go all state retirement, nobody gets the money but the state when you die. >> Okay, you have it right now. It's got a hundred and sixty-two thousand and an inch of years. >> And that's all gone when you die. If you put it in the state, you put it in the state. So, I do the 401(a). I also would look into personal Roth IRAs and see how much of this I can roll and how quickly I can roll it to

Roths and let it grow from here. But we always take a private plan over a pension because

when you die, you lose the pension. And the private plan, the million dollars or half million dollars or whatever you've gotten in there by then, you don't lose it when you die and it makes more in the open market than it does with a pension. [ Music ]

“>> You should not feel uncertain about investing and you don't have to. That's why we created”

investing essentials. A two-night virtual event where George Camo and I walk you through my playbook for investing and wealth planning will simplify everything from 401(a) and mutual funds to passing on wealth. So, you can invest with confidence. Take it start at $199. Get yours today at ramsysolutions.com/events or click the link in the show notes. [ Music ]

>> Our question of the day is sponsored by YRIFI. If missed private student loan payments are keeping you from making progress toward your goals, YRIFI may be able to help you explore

the letter YRIFI.com/Ramsy might not be in all states. >> Today's question comes from Eva in Massachusetts. She said I'm 23 years old and I've just graduated from college. I have $25,000 in stocks and $3,000 in cash. I have no debt and we'll start a job this fall where I'm going to make $130,000 a year with a potential of $30,000 in bonuses. I would like to finance a new Tesla Model Y Dave's favorite car, side note, just kidding.

Out the door, the car is going to be $53,000. I was giving a rate of 2% APR if I put down $23,000 and the monthly payment would be $442 for 72 months. Obviously the smart decision is to buy a used Tesla with cash then to buy the Model Y in a few years. But I've been obsessing about

“this for several months now and I want to get in if I can. How stupid is this decision?”

>> Really? Extremely. >> Is it because it's a Tesla Dave? >> No, wait, she's going about that. >> It's the whole idea. >> Okay, I know. >> Number one, mistake, people make one a graduate from college. By new car. I've been driving my high school college car and it's a hoopty. And now I make big money and so I'm going to prove I'm a graduated adult and you go by a stupid

brand new car. A new car loses 75% of its value in the first four years. Tesla's are worse than that. Go look at a four or five year old Tesla and figure and look at how much they've gone. Go down and value. >> Yeah, buy that, buy the four and five year old. >> No, don't. What? >> The technology is a disaster. >> No, it's not. I don't know why. >> You can't even, you can't even reboot them. No. >> What are you talking about?

>> No, not anyway. Don't buy a list. >> I'm a Tesla owner. >> I know. George just gave that car a way to get rid of it. >> He's not. >> What are you talking about? >> That is not true. >> That is true. >> That is true. >> That's true. >> That is hate electric cars. >> So I hate the value. >> He hates electric cars.

>> Yeah, the value. >> I don't hate electric cars, but I hate the value drop. >> So if you're going to, yes, so if you're going to go buy one, go buy a used one. So you don't take the hit. >> And if you own any car.

“>> On any car. >> And don't finance it. If you have to finance it, you can't buy it.”

And it shouldn't be more than half your annual income. And if you can't pay cash, don't buy it.

And buy used car unless you have at least a million dollar net worth.

>> Yeah. >> You can put obsessing over new cars. That's going to make you broke the rest of your life. >> Yes. What's the, you say the phrase all the time. Car payments is what keeps you middle class. >> A hundred percent. >> Because if you invent, the car payment really is. It's the borrowing paying interest on something that's going down in value.

All really for a status type of life is really what you're trying to buy. You want the comfort and the look of it and how it makes you feel. And if you invested that car payment over the course of your life, I mean, it's a million dollars that you're giving to the bank or the car dealer versus you. And so the financing of the cars, not so are in our millionaire study, what the, the top five

brands of cars that the average millionaire drives, Ford, Toyota, Honda, Chevy, and Lexus. That's it. So I'm missed Tesla. >> Well, I missed a Raptor, so I'm sorry. >> That's a Ford. >> Or whatever you drive, whatever you drive. >> I got two for the cash. >> I paid cash. I paid cash. >> And a Chevy. >> I paid cash. Now but for real though, the car, it is.

That's where people get in the most trouble from a financial perspective. So yeah, I would, Eva, I'm sorry, girl.

You can get it eventually, but save a big cash, pay used until you have a million dollar net worth.

Then you financially can take the head of a new car if it's what you choose to do. So we're doing what it against new and nice cars. We're not against those,

“but you have to be smart about it and you can't.”

>> You need to have a million dollar net worth. >> You have to be able to afford it. >> Yeah. >> So they go down a value too fast. $442 from age 23 to age 65. And a decent gross document you'll find is $4.7 million. >> And that's not Dave Math. It really is. You just pulled that out. >> No, that just shoots the calculator.

>> I know, I know, I just care fine. >> Financial calculator on ramsie.com, okay, ramsiesolutions.com.

So yeah, so five million dollars. That's what that Tesla decision is going to cost you.

That's what I meant by earlier when I said extremely stupid. Yeah, don't do it, don't do it. Pay cash for whatever you buy and don't buy a new car and let you have a million dollar net worth. And all the things you own with wheels and or motors and or batteries added up in value together

And please go look at the five-year-old version of whatever it is you're thinking about

and watch how much they went down in value, particularly items that are a new model of any kind, including Tesla. But so if a forward comes out with a new moderner style. >> Wagoniers would cheap to the same thing. >> Yeah, exactly. >> That whole thing. I mean, those went down real fast. >> Yeah, real bad in value. >> Wagoniers were the worst on depreciation. It even beat Tesla.

And so it's horrible. And so just go look at how much they go down. >> I mean, it's just ridiculous. And the reason is that an eight-year-old Tesla people are worried about what they have to buy a $10,000 battery and the car is not worth $10,000.

“And that's the truth. >> That's why George had trouble moving that car, you got almost got stuck on it.”

>> Yeah, but you just said he gave it away for free. >> Well, he didn't deliver for free, but he had trouble getting rid of an ancient Tesla. Antique Tesla is not going to be running around. >> I have an antique Corvette, but there won't be any antique Tesla's. Okay, they won't survive that now. >> So he won't make it. So the battery won't last that long.

>> Oh, right. >> So it may sit over there, and a flower being a flower.

>> I'm telling you, 15 years, you never know what's going to happen.

>> We'll see. Maybe they'll invent a technology to revive them and reboot them. But that would be great. But in the meantime, old ones aren't doing well on the market. Regardless of whether we have a discussion about whether I like them or not, it doesn't matter. But they're not doing it on the market. So no, no, no, no, no, no, no. >> Number one mistake, people make when they come out of college.

>> Okay, I'll see you at the end. >> I know car on payments, don't do it. >> I'll see you at the gas station, Dave. Oh, wait. I don't have to. >> Oh, yes, that's fine. >> That's because you're plugging in on my building and getting free fuel. >> I am. That's right. >> I'm still don't understand that. I don't have any gas tanks here at Ramsey Solutions that to all of us that drive gas cars don't get free gas.

But all you people that get electric cars get to plug into my building for free. >> And we thank you for that. >> And that way you get to go home later. >> And I paid for that fuel, but I didn't pay for all the other team, but I don't have fuel. >> You own a building. >> That's, yeah, I think the they make little things where you have the charge.

“You have to pay. Yes. >> I bet they do. I need to put pay down to let people pay for their own.”

>> Stop that. No. >> Well, I mean, I have to pay for my own gas. Kelly's got to pay for her own gas. Joe pays for his own gas. >> Come on. No, this is so true. >> This is so true. >> 26, 20, 26, that's what it is. >> Oh, yeah. No. I missed the equity in this. I'm just wasn't too funny, yo. Too fun. >> So we have me driving a truck and the loan he driving a truck and Rachel and George driving

Tesla and Jay just got a new, really nice car. I won't disclose it because it's not, it's not my story to tell. I wouldn't be unfair, but she just did really, but it's not electric. So a gas eater, a gas burner's got, you've got your three to two, right? >> Me and George. >> You and George. >> You and George. >> Kendrick, Kendrick spirits. That's why we just weren't running happy all together. We get each other. >> That's it. That's it. That's it. >> We get each other. >> Hey, I don't care.

“I actually, the truth is, we joke about this so much that I've gotten so much hate mail on its hilarious,”

but I actually do think, I think the Tesla is a phenomenal piece of a technology. I really, it's a lot of fun. I'm just not an early adopter on cars and I'm still waiting on them to come out with the app with the loud muffler because I need a loud muffler. I'm a redneck. >> Redneck needs a loud muffler. >> I need a loud muffler. I need a loud muffler. >> I can't think that's southern out of them. >> I need a, I need a cam that goes boom, boom, boom, boom, boom, boom, boom. >> Feel good.

>> That's it. That's it. Whatever compensating, whatever it is. I don't know, whatever it is, I'm still doing it all. I still love the boom, boom. It's still the best. [ Music ]

>> You work your butt off for your money, but your money's never going to return the favor.

If all you do is hope for the best. If you're ready to learn how to make your money work for you, check out the smart vester program. Smart vester can help you find advisors who specialize in retirement planning, charitable giving, advanced investing strategies, and more. Whatever your goals your pro will take the time to explain your options, so you never have to invest in anything you don't understand. Head to ramsysolutions.com/smartvester.

>> The get-connected. >> Ramsysolutions is a paid non-client promoter of participating

>> People ask me how we made millions in investing, and so we created a two-night virtual event

“to walk you through how I have done it. What my playbook is in real estate and in mutual funds,”

and how I chose not to put money in x, y, or z, all of the other things that are out there floating around to people ask about. So we're going to unpack what not to do and what I have done. If you're interested in that, we've only done this two times, and it's called investing essentials. It's George Camel and I. We're going to be doing another one, September 1st and 2nd, and it's the only place I go through this playbook, all the nerding out and everything on the wealth

planning. We're also going to add some new content this time on reducing taxes on high net worth individuals and navigating whills and how to build a lasting legacy and dealing with wealth in the family. All of that will be woven into investing essentials. Take it start at $199. That's $199. Get yours today at ramsysolutions.com/events or click the link in the show notes if you're listening

“on the podcast or on YouTube. Dave is in New York, how are you?”

>> Let's start the best in yourself.

Just the same. How can we help? >> I am about to inherit $2 million and I don't really know what to do.

>> Wow, how old are you? >> So 40. >> What's your net worth today? >> About $150,000. >> Good. And what's your income today? >> My wife and I, we make about 90,000 a year. We are missionaries. >> Okay. All right. That's a good framework on the way to view it. It's helped me a lot as my wealth has built over the years. It'll help you too. And that's the framework is looking at this through a spiritual lens. And so in the Christian world, we often call

the management of God's money stewardship. You've heard that I'm sure. >> Yeah. And we are Christian. >> Yeah. And you said missionary. So I assume. And so if I am a steward, that's not technically a Christian term. It's technically an old English term that means manager. You're a manager of $2 million. That's different than I became an owner of $2 million. It sits on your heart a different way. It's lighter for one thing, not as heavy. It's heavier if you're the owner. It's lighter if you're the manager.

And then it also keeps my perspective on, I have a job to do. And that is, I am not up to speed, which is why you're calling because you're very wise. I'm not up to speed on how to handle

how to manage this much money. I've never done it before. I'm a newbie, a rookie. And so what does a

“rookie do? Well, they get the playbook and they start trying to figure out what to do. And that's what”

you're doing. So good. The Bible also says in the multitude of counsel, they're safety. And so you're gathering counsel by calling here. And I will tell you to put together your council. Your council needs a CPA in it that does taxes. Your council needs a good insurance person, a broker that not selling you investment life insurance, but that just has all of your things that you need to have insured insured properly. You probably need a real estate person in your corner.

You definitely need a financial advisor, smart vester pros at ramsysolutions.com. I recommend the tax advisors that are ramsy trust that ramsy solutions I recommend. But in each of these cases, you put together a group of people in these different parts of money. And they all need to have the

heart of a teacher because God did not give them the $2 million to manage. He gave it to you.

And it's your job to learn from them. The good news is it's not rocket science. You can learn it. You can learn it. Okay. It's going to be very basic understanding of some of these investments. And then you're going to invest some of God's money. You're going to give some of God's money. You're going to enjoy some of God's money. These are all biblical things to do.

And so that's going to be that part of it easy for you. But even if you were at the Ramsy family

“foundation when we're picking a ministry to financially support, we vet them for how wise they're”

doing, how wise they're operating the ministry. Because we're investing God's money into that ministry. And so if we're investing money into a company, we vet the company to see how well it's run. Same thing with this. And so you're going to do all of this. I have a question for your like your just day-to-day life. What does that look like for you? Are you guys renters or do you have kids or they in school? What's your your rhythm right now with life? Yeah. So no kids. We're both

40. And we are currently renting from family members. Okay. Currently we do have a heart to

to buy a home. And currently apart from the $2 million that is coming up, we are currently

underfunded living in New York. It's extremely expensive. And you know, missions wise what we do, we are roughly around $2 to $3,000 a month short. Now we, the way we've done that is we've done like end of year fundraising. So in our organization, we actually do have a little bit of a nest egg where we draw from that each month. Good. Yeah. Yeah. Yeah. I would pretend like you didn't have this.

“That's how I was going to say. There's something about, yeah. For you guys putting this away,”

I think is going to be most of it. Now, the housing thing. Are you guys going to be in this area for a while for the foreseeable future do you think? Or is there life? So, yeah. So that's a great question. Actually, what the word has done very recently. We don't have an exact timeline. But anywhere between the next six months and potentially 18 months, the word is moving us to

a third world country. So actually our expenses will decrease. Okay. And don't mind how

you're leaving. So I was going to say, yeah, I mean, that's the plan. I would be, I'd be giving some of this. I'm a Jordi of it. I would just put it. I would invest it. I mean, index fund mutual funds. I would put it away. And if you guys needed a little bit, I just don't want this to drip disappear over. Yes. Uniting mean five to six years when you start to, like, there's something

“about living within your means, so that I think is really wise. And like you said, you guys will be”

moving to a different country. So your expenses are all totally different. But don't, don't also do not back to what I was saying earlier. Do not sign up a financial person or an insurance person or anybody who's telling you what to do. Their job is to teach you. Yeah. Because we can't. We can't so I do have maybe another two-apart question that goes off of what you guys are asking as well. One, we do currently have a financial advisor. They are through primary, so I do have term term

life. And we do have a Roth IRA that we are maxing out each year. Now, that isn't a part of the question that I was going to ask. You were actually just just getting to that in regards to if we need a little bit of extra money. My heart is 100% to do everything that you guys just shared in regards to generosity and living below our means. We currently still do. Now, we've already done our budget for the new location. And we are still going to be looking at around 1500 a month short.

Is there a way to, you know, I've heard about like different end funds or need their way to collect some sort of income? Any, any mutual fund can pay you an income? Any mutual fund. You can just take a systematic withdrawal. A certain amount per month or a certain percentage either one. Any mutual fund. It doesn't require it. The funds or the stocks inside don't have to be dividend funds to do that. You could do that with an simplest and pee. And would you recommend he do that and they could live

off a thousand bucks a month? I recommend you go back to fundraising and raise your money and not touch this money. If you've got a $1500 a month drip, take it out like you're doing now out of your comfort out of the missions. Budget that you put together with your retained earnings inside that.

that most people are broke. Not because they don't make enough money, but because they don't have

“a plan. You need to give every dollar you earn a job because when you do that, something changes.”

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Like that. All right, up next is going to be Beth in Los Angeles. Hi, Beth, how are you? I'm good. How about you, Dave? Hi, Rachel. Hi, Beth. Thanks for calling in. I have. I share two teenage daughters with my husband. He currently owns a home. It's under the property taxes under his name and his sister's name. The mortgage is just under his name. Lately he's been experiencing some house concerns. So I want to know is there anything

is there something illegal thing that I can do? So that way in case something does happen to him. My two teenage daughters, do you get a portion of that home? Okay, you said the property tax. There's a deed, the title to the home. Who is the home title to?

I'm not sure. That would be that would be the essential part of information.

Okay, and then the second question is there are several types of things you can do with two individuals that aren't married. Tenants in common, tenants in tiredy are several different things you can do. And until we know California law and we know how it's titled, we don't know how big a concern you have. Okay, but is your husband is he still able to do business? Yes, yes. Okay, then you all start talking about this tonight and get to the bottom of it. How is

it titled and how do we ensure that your portion of the ownership goes to your daughter? Is that what you're wanting? Yes, that's correct. My daughter's. Okay. Well, number one, you need a will. Does he have a will? No, he doesn't. Well, he needs to get a will. Everybody that's breathing this over to 18 years old needs a will. So how complicated is your also state other than this house? How many other things are there? He has his like stocks and investments and I also have my own home as well and also some

little investments. So this is a second marriage. No, no, it's not, it's our only marriage.

Why do we, why do we, why have my own home? What's that mean? Oh, because I have, I had purchased the home before I met him. Okay. And then he has this home before he met me and then we joined forces and that's,

“you know, that's how it is. And how old are you? He's going to late 40s. I'm in my early 40s. Okay,”

you need a will. If you want to do a simple one, both of you need one. You need to do a simple one. You can go to mamabear, legalforms.com and then you can do one overnight. It's very easy. It's really not complicated. It just means you have to deal with the fact that you're going to die someday. Welcome to the emotions of that. But if you want to get complicated, obviously, you can go to an attorney. But don't drag this out two years. Get it done now. And wills need to be state specific and they

need to be in California. Okay. If you're a resident of California, you go by California law, not by Tennessee law. And California law is different in so many ways. But yeah. So um, but anyway, you want to make sure that your will lines up with that. And then while you're doing that,

“you need to jump on the phone and learn about, uh, with an attorney, probably. Learn about his”

portion of this house and how to ensure under California law that the his portion of ownership goes to his sister. It might be, or goes to his daughters, not to his sister. Um, and some,

go to his sister. You want to make sure you don't have that. Okay. Okay. And and the California

doesn't allow that. And I don't know the answer to that, because we don't know how this is titled, and I don't know California law that well. So got it. All of that to say, we just want to, and if we need to change the deed, if we need to, uh, ensure, put the his, the deed in a trust, if we need to put it in, uh, just, it may be as simple as he states in the will that his portion of his portion goes to his daughters. This is probably that simple, but you want to double check,

because you don't want to have to fight with a sister in law after death. Yeah. Do you guys have a good relationship? Because I'm sure she has to sign off if you change the deed and do a couple of things,

right? Which she have to, she would probably have signed off on. He could sign off his portion into

with quit claim into a trust without any, in any state he can do that. Okay. So yeah, we're, we're very friendly. Yeah. Yeah. If you needed something from her, like a signature, it's not like a big thing. You're very wise to be concerned now, because you can't fix, you can't buy fire insurance

“after the house burns down. You can't fix the state deals after somebody dies. So you need to do it”

now tonight. Okay. Don't, yeah. Not, not, because 40-year-old people things happen to him all the time. 30-year-old people things happen to him all the time. Everyone needs a will and it's just to protect your family and it's, what do I will? What do I want to have happen? And if you don't write that down, that's your last will. What is my will? What is my want? My last want? And here I'm going to testify to that. My last will and testament. And it just makes it so complicated for the

people that you leave. Right. You're, you're done. You're gone. But man, for everyone else. Everybody. Untangling a mess is not fun during grief. So get wheels and do a little bit of research on what happens to his half in California in the way that's titled. Matthew is in San Antonio. Hey, Matthew, how are you? I don't, I'm trying to better than I deserve. How can we help? We have a lot of house problems. We're looking to, for council, whether we should sell the house

and start over and hope to break even or invest and then to possibly gain or if we should just, if you didn't own it, would you buy it again? No. Right. No, sir. Yeah, if you didn't own it, knowing what

“you know now, it's not romantic to buy a fixer upper. It's a pain in the butt. And that's what”

you discovered, right? Yeah, yes, very much. Yeah, those people that do it on television. You know, they have crews and editors and it makes it look like it happened in one hour. And it didn't. It happened over weeks and weeks and weeks and weeks and weeks and everything can go around goes wrong. And those television shows are full of crap. And so that's not how life works. And you discovered that sell it, man. It's no fun for you. Did you guys do it? Because you wanted to fix it

up or is it what you could afford? Yeah, that's what's hard. It's not being bothered before. Yeah, no, no. I was affirming that yes, that's what we're seeing more and more is because of the market, your buying things are not, it's not new, right? And so you're going to have to do what's going on with it? What are the problems? Major problem is the sewage drain is broken inside the house, underneath the foundation. Average pricing. We've been receiving the fix it has been 20,000.

It's been like the lowest on average. Telling of go ahead. For less than three years, we're going

going on and going on into our third year, but it's really been a little over two. Okay,

how much is it worth? We received the loan for 135,000. Now, I mean, without it, the plumbing being fixed, I'm sure it's not domestically. We still owe 130,000 on it. Can you get out of it? Within within ten months, we can within ten months, because we got first time home buyers, no doubt. I forgot what the loan was called, but like the loan down payment basically loan. So we have a minimum of, we have to show you how you're living in it.

Thank you Lord, there was an unfinished bathroom. I was sold as a three-bedroom, one bath. There was an unfinished bathroom on end of garage that pipes around the house and taps into the yard.

“So that's how we use the restroom and then we lost dishes with five gallon buckets like that.”

And we have two young kids, and I have not been on top of it, husband. This is just something that has been like showing a gem. Yeah. What happens if you sell it earlier than ten months?

I could be wrong. I believe it was 5,000, but I could be wrong. What's your household income?

“Without over time, 3,300, with over time, a little over 4,000. When are you subscribed together? 5,000 bucks”

and get out of it and rent somewhere? I wouldn't live in a place with five gallon buckets, man. I'd get out of there.

I put this hour of the 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.