Make Sacrifices Today To Achieve Your Financial Goals | October 3, 2025

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Normal is broke and common sense is weird. So, we're here to help you

weird. So, we're here to help you transform your life. From the Ramsey Network in the Fair Winds Credit Union studio, this is the Ramsey Show. I'm

Dave Ramsey. Rachel Cruz, Ramsay personality, number one bestselling author, co-host of the Smart Money Happy Hour. She's my co-host today and my

Hour. She's my co-host today and my daughter. Open Phones at8255225.

daughter. Open Phones at8255225.

Rachel, before we jump straight to the calls, you guys just got back from doing a Ramsay something we've never done, the Ramsay show on the road, and it was you and George and Ken in Chicago, right?

>> That's right. at the den in Chicago, this kind of little club. It set about 300 people and it was so fun. So, we

took live calls from the audience. We

played some fun Ramsay show trivia, which they all knew it. They they all won the game because they're all big fans. They listened to every show. I

fans. They listened to every show. I

feel like everyone that was there. Uh

but it was great. A lot of laughs. Um a

lot of good conversation and you know, you get you get reactions from the audience. They're they're clapping.

audience. They're they're clapping.

They're laughing. They're they're uh when someone asks a question, you know, and they know it's it's great. It was it was a really fun time.

>> A little groan in the audience.

>> Yeah, it was great. It was good.

>> So, and we're taping another one tonight in Orlando with uh Jade and Deloney and George.

>> That's right. Yes.

>> Okay, cool. So, uh these are all sold out. We're doing a little test with

out. We're doing a little test with these, right? I think we're doing four

these, right? I think we're doing four or five of them here in the fall. And if

they all go as good as Chicago, you'll be hearing us all across the country in the spring. and we'll do a bunch of them

the spring. and we'll do a bunch of them for you guys just to come out and do what we're doing right now in your presence and you guys get to be there and ask questions live and uh the only problem is we can't hang up on you to

protect you from you. So, um

>> yeah, you can't put people on hold.

>> Yeah, we did learn that.

>> Yeah, sometimes we do that around here.

We protect you from you, but can't do that in a live setting. It's a little harder. I just push the button and the

harder. I just push the button and the microphone still standing there with that guy. Yeah, that's it. So, yeah, you

that guy. Yeah, that's it. So, yeah, you got to be careful with that. But hey,

open phones here at8825-5225.

Katherine's in Grand Rapids, Michigan.

Hey, Katherine. How are you?

>> I'm doing good, Dave. How about you and Rachel?

>> Better than we deserve. What's up in your world?

>> Okay, so my question is, how am I, as a single mom, supposed to balance my debts and maintain my health

and take care of my daughter at the same time?

Well, it sounds like the income is smaller than the outgo probably, isn't it?

>> Well, it's definitely not great.

>> Yeah. You wouldn't be have you wouldn't be calling me if you were making 300K.

>> No.

>> Okay. Definitely not.

>> Yeah. So, what do you make?

>> I make between 28,000 and 30,000 a year.

>> And how many children do you have?

I just have the one. She just turned 13 months a couple weeks ago. And I

actually called into the show in April of last year when I was still pregnant.

>> And I did do what um was advised.

>> What was that?

>> But it's um to make sure I got a second job, work as hard as possible until my due date.

>> That help?

It did a little bit, but uh as soon as I went back into the workforce, all that I had saved up for my maternity leave and my return to work vanished with the first couple weeks of daycare.

>> Yeah, >> I bet. Daycare is outrageous these days.

Um Wow. And so you make 28,000 a year?

Wow. And so you make 28,000 a year?

>> Yeah, just between 28 and 30.

>> What do you do?

I am a groundskeeper slash student supervisor for my local university.

>> Okay. All right. And are you getting child support?

>> No child support. Her father is not from the US. So, and we don't have any

the US. So, and we don't have any extradition with the country that he's from. So, it doesn't help any matters.

from. So, it doesn't help any matters.

>> Wow. Okay. So, he just disappeared.

>> Yeah.

>> Okay.

All right. Well,

>> Catherine, do you have family in the area? Do you have

area? Do you have >> Yeah, I live in the same town as both my parents and my dad's parents.

>> Okay.

>> Everybody's a little swamped themselves.

>> Sure. Do you have good relationships with them in general, though?

>> Yeah.

>> Okay.

>> Okay. Well, the the long-term answer to your equation is more income. Well, no

kidding, Dave. Okay. But um so what we've got to do is to the long-term answer is to be thinking about what career can Katherine engage in to make $100,000 a year starting 10 years from

today or 5 years from today. And what

has she got to do to get ready for that career, okay? Because obviously what you're

okay? Because obviously what you're doing, we don't want to project that out 40 years. That's an unfun life.

40 years. That's an unfun life.

Okay?

>> So number one thing we start thinking out into the distant future and what has to be true? Do you have to take a class, uh, get a certification, get a degree in

something to get to be and do something that pays more than the something you're doing now? That's kind of basic, but

doing now? That's kind of basic, but that's really where we got to start.

Then we can roll back from there. I'm

sorry.

>> Um, I have been looking into doing some classes with either Penofer or Google's Corsera courses.

>> Okay. In order to do what? not

um to either do something in the medical field or management.

Okay, both of those are pretty vague. I

want you to spend some more time dialing in exactly what you would be doing after you finish these courses and I needed to pay 50 grand, >> right?

>> Or more. Okay? And so I don't care what you're doing. uh we'll send you Ken

you're doing. uh we'll send you Ken Coleman's book, Finding the Work You're Wired to Do and and it's got the assessment in it, and that will help you. We'll do that as our gift. But and

you. We'll do that as our gift. But and

so you're already thinking like I'm thinking good. You're that's your

thinking good. You're that's your long-term goal. Now, your short-term fix

long-term goal. Now, your short-term fix is got two components to it. Um one is the dreaded part-time job and family helping you with the babysitting

uh some. And uh two is I want you to be

uh some. And uh two is I want you to be sure you're plugged into your local church and they know what you're up against.

because uh they will help.

>> I have reached out to the church.

>> Good. They will help. And if

>> I'm sorry, >> the only help they can really give in my area is help with like rent and utilities, which would pay some of the

monthly uh uh monthly daycare fees, but it would not be enough to cover it all.

>> Yeah. Well, and it sounds like possibly that a day the daycare arrangement you've made is one you can't afford. You

may have to redo that. I don't know what that is, but it's a very difficult thing. thing you're facing.

thing. thing you're facing.

>> Yeah.

>> And so this is not an easy hill to climb.

>> No. And I wonder too, Katherine, if there's anything from home in the evenings and just knowing your experience as a groundskeeper and I'm sure there's some logistics there. I mean, I don't know.

logistics there. I mean, I don't know.

I'm just making this up, but I'm like, if there's even like a landscape company that you could work for for eight hours a week to help with scheduling, you know, doing like some kind of admin work for them or whatever you can do from

home, even just picking up a couple of hours to just create some cash buffer is going to be big. And and if the church can step in on those utility bills and rent, I mean, that will free up I I

don't know how much the rent is, but a couple hundred bucks at the minimal um for a period of time, too. So, it's kind of puzzle piecing some of this together for probably the next 6ish 12 months

until you kind of can project out possibly a job change to be making more in your full-time job.

>> What you don't want to do is get paralyzed and say throw up your hands and say, "Oh, this can't be done." Cuz

it can be done. What it is going to require is not a single answer. There's

not a single silver bullet. It's turning

the knobs, all of these knobs at one time. the extra job, the church, the

time. the extra job, the church, the long-term thinking with money, the daycare arrangements, the family help, what all these knobs can be turned just a little bit. Then all of a sudden, we start to get something that's

sustainable until we can get our income up long term. And that's where you got to get to. There's not going to be a singular answer. And being paralyzed and

singular answer. And being paralyzed and giving up is definitely not going to be a good answer.

[Music] Statistics show that half of Americans don't have enough life insurance or they

don't have any at all. I don't

understand this, John. Why don't people want to take care of their family? They

think they're going to die or something.

Well, I used to be one of those guys. I

didn't even think about it. And one of my buddies said, "Hey, the only reason to not have life insurance is if you hate your wife and kids." And I immediately went and got term life insurance.

>> That's a gut punch.

>> And oh, you're telling me and for for decades, Dave, I've sat across people who've lost a spouse. They've lost

somebody important to them. And they

don't know what to do next.

>> Me, too. I mean, you're going to have a crisis here. And you know, you got two

crisis here. And you know, you got two options while you're sitting and talking to a young widow. She's concerned about how she's going to invest all this money properly and not mess this up. Or she's

concerned how she's going to eat tomorrow. That's exactly

tomorrow. That's exactly >> these are the two options. Take care of your dad gum family, man.

>> Term life insurance going to replace income, pay off debts, cover funeral expenses so your family can actually have the opportunity to just be sad.

Yeah.

>> To just miss you.

>> That's exactly what it's supposed to be.

It's saying I love you to your family.

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Deanna's in Pennsylvania. Hi, Deanna.

How are you?

>> Good. How are you?

>> Better than I deserve. What's up?

>> So, my question for you, um, my boyfriend and I graduated college last I graduated last August. He graduated last

December. Combined, we had a little bit

December. Combined, we had a little bit over $100,000 in student debt. You're

not combined. You're not married. So,

how much do you have?

>> I had 60 and he had about 55 60 right around there.

>> Oh, okay. All right.

>> Yes. Yes. And then we I'm set to pay mine off in December and he's set to pay his off in December. So, we are going to be >> student loan free um within just about a year.

>> Good for you.

>> Um so, yeah. So planning long-term wise, we're looking to probably get engaged in the next year and a half. Um, so one thing that we are talking about is

combining finances after we are married and we are looking at what to invest in once we get to that point. The next year

is going to be saving up. We're planning

on um having around 50,000 to put as a down payment on a house. um we don't want to want to really buy anything over like 150,000 and then you know double up

our mortgage payments and pay off our house um as quickly as we can. But the

one big question I had with all of this is I own my own marketing firm. So I

cannot invest in a 401k where a company would match it. So my question to you is is would it be smart to open something like a Roth IRA to start investing in

now so that you know we can be millionaires when we retire?

>> Good for you. Well, it sounds like you're doing a lot of planning.

Congratulations. And of course, let me clarify one thing before I go back to that question. The house we're going to

that question. The house we're going to buy is after you're married, too, right?

>> Yes. Correct. Yep. we would not be combining finances or >> or buying a house together because it's very very dangerous to buy very dangerous to buy a home with someone you're not married to. Okay. All right.

So, um now so it's pretty simple just at that point you would have an let's say you're married uh you're out of debt. You have

an emergency fund. You have and you buy a home with with 50,000 down. You're at

what we would call baby step four at that point. And that means you you start

that point. And that means you you start putting 15% of your household income away towards retirement. And then you work your budget and you have a life and any money you can squeeze out of it, you

throw at the house and pay the house off early, which was your plan. And that's

how you outlined it. Okay. So then that brings us to how do we do 15% of our income? Yes. I would start with two Roth

income? Yes. I would start with two Roth IAS. One of you each have one. You could

IAS. One of you each have one. You could

start that now for that matter.

>> I was going to say, yeah, absolutely.

Well, after the debt's paid off. Okay.

>> Yeah. Yeah. Once you once your debt's clear.

>> Yeah. And you can just sit down with a smart vest pro uh which is the people that do in help our uh listeners do investing and they've been vetted by us

and they have the heart of a teacher and they'll teach you.

>> You have available to you a couple of things with your marketing firm that you can also do >> as Roth. Uh you can do a uh it's a SE

IRA, a Roth SE IRA, simplified pension plan it's called. Now, do you have any employees in your marketing firm?

>> No. Nope. Just me.

>> Okay, then that's very easy. So, you can put up to 16% of your income with a formula. Ends up actually being about 13

formula. Ends up actually being about 13 when the formula is applied, but you can put a bunch of your income aside in a SE IRA, SEP, simplified pension plan, okay?

And simplified employee pension plan.

Now, warning, if you do hire people later and they're with you more than two or five years, whatever you put in that year that they reach that point, you would have to put in the same percentage

of their income. So, it works really well for a soloreneur like you, but it doesn't work well for a small business that has five employees.

>> Okay.

>> Okay. You also in addition to that can do a simple IRA which is a 401k for small businesses.

>> Okay.

>> And uh you can set it up. It's $15 to set the account up. They're very

inexpensive to set up. To set up a 401k in a big company like ours is tens of thousands of dollars a year in administrative fees. But for a simple is

administrative fees. But for a simple is designed for small businesses. Now

again, warning, if you have that and you hire someone, you're required to match the first 3% of what they put into their IRA if you have that simple program

going. But point being, there's two

going. But point being, there's two types of ways you can get money in and you actually can do both of them technically if youclude and do the Roth and do the Roth. So, you'll be able to

get to your 15% very easily. Make sure

they're all in going in good growth stock mutual funds and they're all Roth which is taxfree growth.

>> Yeah. And then your husband once you guys get married can be investing as well in a 401k if he's at work too. So

you guys will be tackling it from multiple different areas which is great.

Um but yeah, I appreciate the plan and maybe you guys fast forward up the engagement. You know,

engagement. You know, >> I'm a fan. If you know you're going to be engaged in a year and a half, go ahead and shorten it >> like Rachel did.

>> Start the start the process. Get the

ball moving. Rachel and Winston came and said, "We want to get married right now." We were young.

now." We were young.

>> Okay. All right.

>> No, we waited. We

>> You waited about 10 months. No, 10

months. 10 whole months. But I'm like, "Yeah."

"Yeah." >> Yeah. There was no

>> Yeah. There was no >> Yeah. It's like

>> Yeah. It's like >> Good job, Deanna, though. Um, but

honestly, very impressive. You guys just fresh out of college just in the last year, have a plan to pay off the debt, >> knock it out, >> looking forward to the down payments, thinking about investing, all of it. I

mean, you are in a perfect position and time in your life to to start all of this. So, congratulations.

this. So, congratulations.

>> Bobb's in Texas. Hey, Bobby. How are

you?

>> Hey, Dave. How are you doing, sir?

>> Better than I deserve. What's up?

>> Uh, I had a question. Is it okay to pause uh building the emergency fund to set up a uh revocable trust and a special needs trust?

>> No, you don't need to. You can fund those with the beneficiary of your life insurance and the kid doesn't need a trust unless you die.

>> Uh well, the thing is is uh my uh life insurance is really what I was worried about. Like if something was to happen

about. Like if something was to happen to me and my wife, like we have a beneficiary but >> well, make the beneficiary make a part a portion of the beneficiary go to the special needs trust and then the child

is funded for life out of your death.

But you don't need to fund it while you're alive. You need to go build

you're alive. You need to go build wealth while you're alive and that will take care of the child later and you won't even need life insurance to do it.

>> Okay. So, just finish the uh baby step three and then uh you said don't set up a revocable trust at all. No, I would just set it up only upon death. Special

needs trust has no value while you're alive. It's for taking care of a special

alive. It's for taking care of a special needs child if you're not there to do it. And you have to fund it with some

it. And you have to fund it with some money. And if you don't have money, you

money. And if you don't have money, you fund it with life insurance upon your death. But if you stay alive and you

death. But if you stay alive and you fund it with money and you say, "I got a half million dollars in mutual funds 20 years from now." And you say, "That is earmarked for this special needs child to be cared for throughout their life."

That goes into a special needs trust upon my death. But until I die, I'm gonna take care of them.

>> You see what I'm saying?

>> Yes, sir.

>> So, you're taking on a bunch of paperwork and paying lawyers crap you don't need to be doing right now. You

just need to go get out of debt, make some money, and and name your go ahead and do do the life insurance today where it's named into the special needs trust.

And your will says the special needs trust is formed upon your death. And so

upon your death, >> do you have to do paperwork though in order for that to be? Uh your will does it. Your will your will dictates that

it. Your will your will dictates that the trust is formed upon your death.

>> And so po poof, there's a trust. Now you

die, poof, there's a trust.

>> But who who who >> Well, the whoever the executive of the estate is, >> they have to go form it then.

>> Yeah. It's it Yeah. But it's not it's not hard. I mean, it's like a it's two

not hard. I mean, it's like a it's two pieces of paper. Okay. And you just And but you got to put money in the thing for the kid to be okay, which is your real motivation, Bobby, which makes you a great dad. Okay.

>> What kind of uh life insurance do you have Bobby?

Uh between me and my wife, we're looking at like 1.7.

>> Good. Good. Great.

>> And so what I would do is sit down, if you're working with a Smart Investor Pro on your investing, I'd sit down and say, "How much would I need to put in a in an account, you know, invested in mutual funds to take care of this child with

$50,000 a year, take care of this child?" Probably. So half million. So

child?" Probably. So half million. So

you could say of the 1.7, 500,000 goes into the special needs trust on the beneficiary statement. So, you redo your

beneficiary statement. So, you redo your beneficiary clause on your life insurance immediately and you do your will immediately to say special needs trust is formed uh the Bobby special

needs trust and the Bobby special needs trust is funded with 500,000 from the beneficiary of this life insurance policy upon my death and then the child is taken care of which is your goal because you're a good dad but you don't

have to do all that crap right now. It

could all be formed and done upon your death. What you do have to do now is do

death. What you do have to do now is do your will and change the beneficiary.

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[Music] Rachel is in North Dakota. Hi, Rachel.

How are you?

>> I'm fine. How are you guys doing today?

>> Better than we deserve. What's up?

>> Um, so we just started the baby steps.

We're on step number two and this is literally our second month. Um, in our first month, we ended the month with a surplus of almost $3,000. So,

>> um, but my question is, um, I have a variable income and my husband does not.

And we have, um, just over 9,000 in our savings. And so I was wondering, we have

savings. And so I was wondering, we have four children, so I wasn't sure if we should just keep that and then um use whatever extra money we're finding every

month to pay down the debt or if we should use the savings that we have already.

>> Well, 90% of the time we're going to tell you to use the savings down to $1,000. Um, how variable is your income?

$1,000. Um, how variable is your income?

>> Um, it's pretty extreme. I'm a wedding photographer, so in the summer months I can make, you know, 12 13,000 a month and then come December almost nothing.

So I also own a studio that brings in some small income as well. Um, we rent out to other photographers. So I can make anywhere from 1 to 3,000 a month off of that.

>> And that and that's 12 months a year, >> correct?

>> Okay. So, I mean, so your bottom is 1 to 3,000, your worst month, >> correct?

>> And what's your husband make?

>> My husband makes um each paycheck is 4,700.

So about n just over 9,000 a month.

>> Mhm.

>> Okay. All right. Very good. Very good.

>> And how much of the um doing well when you guys do your monthly budget, Rachel, what how much does it take to run your household, would you say?

Um, so my fixed expenses and with our like additional variable expenses like pets and miscellaneous home stuff is just about 9,000. So it just clears his checks.

>> Okay. So if you make zero, you guys run the house. Okay. You just don't have

the house. Okay. You just don't have extra.

>> Correct.

>> Then why would you need savings to pad that?

>> Um, >> just cuz you're a nervous mom.

>> Yeah. My kids are small and you know we get broken bones and fingers all the time. So it just you just never know.

time. So it just you just never know.

>> Mhm. And but you have like health insurance.

>> We do. Yeah. Through my husband.

>> Yeah. And if you go to the emergency room and they send you a bill the next month, you have some wedding income to pay a bill.

>> Correct. And he has an HSA account, too, with just under a thousand in that.

>> Yeah.

>> That's good.

>> So, yeah. I I I think you are um it's wise to be a good mom and say I got four kids and it worries me. It adds to my fear for us to be down to a thousand. I

don't have any problem with the wisdom of that. But the actual math

of that. But the actual math >> is telling us that that you're probably don't have a problem >> because then how much debt do you guys have left, Rachel? Oh yeah,

>> we we have um 40,000 in consumer debt and then on top of that just our home which >> but in baby step two is only plan we're going to have $1,000 in the account >> and so

>> Yeah, I was going to say I mean with >> So you're going to be done in like eight or 10 months.

>> Yeah, exactly right.

>> Yeah. Yep. And um my husband actually gets a a really big bonus in March every year. It's usually 18 or 19,000. So

year. It's usually 18 or 19,000. So

perfect.

>> Yeah. So, um, according to your plan, we should be done, um, like April or May, the latest.

>> No, but No, you'll be done in March because you're taking $8,000 according to our plan of your nine and putting it on your debt today.

>> Okay.

>> Oh, God. Oh, God.

>> Sped it up a few months.

>> I heard her take a breath. I'm going

into the I'm just going into like my slow season. So,

slow season. So, >> understand you guys can eat on your husband's income. You may not reduce

husband's income. You may not reduce debt. And if you had a horrible month,

debt. And if you had a horrible month, >> the worst thing that could happen is is that a child breaks a bone, the HSA is used and the $9,000 supports your family and you brought in zero and you're still

okay. You didn't even touch the $1,000

okay. You didn't even touch the $1,000 emergency small starter emergency fund.

That's your worstc case scenario. So,

and you're you're just not that's all that's not going to happen.

>> And Rachel, yeah, that and it's so fast.

Like, if you guys had 140 of consumer debt, um I think you know, and it's and it's a longer period. There's going to be more time for something to happen, a bigger emergency, but this is such a short period of time. You know what I

mean? I almost would just knock it out

mean? I almost would just knock it out because you just think about all the debt, all the payments, all the interest, everything that's happening.

And if you can start chopping off a bunch of that stuff really quickly, which is what the debt snowball does.

And and if you're just a little bit scared, it motivates you to do it even faster.

>> Oh yeah. I my last month I brought in almost 8,000 last month. Um just because I was >> I've been binging you every single day.

So it's like >> and you're fire you're fired up. You're

fired up and and if you're a little bit and if you add that fired up just a little bit scared, it'll push you.

>> And uh and I don't think you're in danger. I would not tell you to be put

danger. I would not tell you to be put your children in danger. Okay? I love

your kids. I don't want that to happen to them. And I'm not asking a mom to be

to them. And I'm not asking a mom to be irresponsible. Yeah. And

irresponsible. Yeah. And

>> And we're not asking to live on a thousand dollar emergency fund for 10 years either. We're asking for five or

years either. We're asking for five or 10 months.

>> And the truth is from a percentage standpoint, the amount of emergencies that come up that you can't pause the debt snowball and wait two or three months to be able to save up to pay off

that emergency, then go back to the debt snowball. That happens sometimes, but

snowball. That happens sometimes, but people have the ability to pause it if something happens, but almost never. But

most of the little things that come up that people use their starter emergency fund for is smaller than $1,000. But

yeah, I mean it's a it's definitely like takes the breath out of you for a little bit, but you can do it. You guys can do it. It's

it. It's >> a good thing. Yeah, Rachel, you've I will tell you this. You've done a great job of analyzing your situation. You

know your numbers.

>> You're you have a plan. You're running

it in your head. and the the the detail of the question you asked indicates how how leaning into this you are. So I

really think you'll be done by March.

Just my experience is the people that >> the people that are paying attention and focused and they're going on every little thing. They're doing every little

little thing. They're doing every little we're binge watching meaning I'm gathering this information. I'm going to do this and we're going to put you in the brand new every dollar which is going to hold your hand and make sure you're doing exactly what you're

supposed to be doing. It's going to give you step by step through the baby steps while you're doing the budget. It's

incredible the what we've done with this financial applicant app. It's it's off the chain. So hang on and we're going to

the chain. So hang on and we're going to give that to you as a gift. Um you guys make plenty of money. You're going to be just fine and you're going to be so stinking wealthy at the end of this story. It's unbelievable. This is so

story. It's unbelievable. This is so fun.

>> Great job, Rachel.

>> Good for you. David is in Minnesota. Hi,

David. How are you?

>> Oh, I'm doing fabulous. How are you?

>> Better than I deserve. How can I help?

>> So, I got an interesting one for you.

Um, after a couple years after I lost my job and living with in my friend's house while I get on my feet, I just got back into truck driving. Well, now he's going to sell the house and um I I came up

with three plans on what I'm going to do next. Either I buy a house and I don't

next. Either I buy a house and I don't really have any money for a down payment. I just finished paying off my

payment. I just finished paying off my last credit card today. Or I rent a place but I I'd rather prefer to own. Or

the third option, and this is something I'm leaning towards, is living out of my semitr. Uh, and

semitr. Uh, and >> how old are you?

>> It's a com I just turned 30.

>> And I take it you're single, >> correct?

>> And how long would you do that?

>> Um, since I'm not going to have a credit history starting today, since I don't have any other debt or credit cards or anything else, I don't know how much of a down payment I'm going to need for a house. That way, the bank doesn't care

house. That way, the bank doesn't care what my credit looks like. So the same amount probably at least one or two.

>> Yeah.

>> Oh, okay.

>> So if so you if you drove truck and lived in the truck for two years and stack cash as a single guy and made that your home, I think that's amazing. Yes,

I would do that.

>> Okay. Cuz a friend or two of my or I should say my sister thinks that it's a little crazy to live out of my semi-truck. So

semi-truck. So >> Well, your sister's married and has two kids.

>> How did you know?

Wow.

No wonder why you're so good at this.

>> That was a guess. But yeah, that's funny. But I mean, she's got she has a

funny. But I mean, she's got she has a different life than you have. If you

told me you were married two kids, I wouldn't tell you to do this.

>> How often are you on the road road, David?

>> 24/7. He's driving over.

>> I know. But how how often though?

>> Every day.

>> So, uh, my almost. Uh, so my schedule is I can be home every weekend, but every now and then I will drive through a weekend just to make some extra money.

>> Yeah, you're doing you're doing long you're doing long haul runs. Yeah. And

you got you got a sleeper cab, right?

>> You got a sleeper cab, >> correct?

>> Yeah. Have at it, man. Go see America.

>> Maybe for the year. Maybe for the year.

You say two.

>> A year. Maybe two. But would I do this for two decades? No.

>> No, I wouldn't do it for two decades.

You need to come, you know, build a life at some point. But but for a couple years and get get some money stacked up and get some distance between you and whatever's been chasing you. Yeah, do

it, man. Do it.

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We'll help you out. Carly is in Arkansas. Well, hi Carly. How are you?

Arkansas. Well, hi Carly. How are you?

>> Hi guys. I'm good. How are you?

>> Better than I deserve. What's up?

>> Thank you guys for taking my call. Um

I'll let you know I'm pretty nervous. I

really look up to you guys and appreciate what y'all do. So

>> Well, thank you. How can we help?

>> So for some context, I'll be 20 this month and I'm getting married in January. Congratulations. My

January. Congratulations. My

>> Thank you. Um so my soon husband and I are trying to plan our future and just make sure that we follow the Ramsay way.

kind of hopped on the bandwagon that my mom has put me on last couple months.

Um, my biggest question is that I have an $85,000 inheritance in a brokerage account that I haven't touched since I've gotten it, but I when we think about putting a down payment on a house,

that kind of I just don't want to. I'd

rather pay cash. So, I'm thinking, you know, we put that brokerage account down on the house, but we want to save for the next four to five years um to add to that that house fund. And

I'm just not sure what kind of account to put that in. Do I put it on top of the brokerage or an HYSA?

>> Are you wanting to use the 85, Carly, for a down payment and then pay the house off quickly, or you're wanting to save that 85 plus a lot over the next

couple years to pay cash for a house?

the 85 plus the rest to um pay cash.

>> Okay. So you guys won't buy a house for a few years and where do you keep saving that money till you buy is what you're asking.

>> So who who's has the brokerage account?

>> Um well I do but we will.

>> No I mean what is it with a company that you >> that is doing all of your investing or you just parked it there because your grandmother had it there or what?

>> It's with my finance guy. Um so with the company I believe.

>> Okay. All right. So, if you were with one of our smart investor pros or with your financial adviser, if it's someone you trust, it should be in a good growth stock mutual fund.

>> And uh that's what it says.

>> Yeah. And you should add to that.

>> Not a not a not a a high yield savings account pays a fourth of what the mutual funds are producing these days.

>> So, no, you want to get you want to get a full ride on >> because it's going to be a couple years.

Carly, if you guys were going to put a down payment or something and you were saving for, you know, 6 months, you know, you that would be fine to just to do like a high yield savings. If you

were starting over, starting new, but something longterm like that, then yes.

Yeah. The investment,

>> you got a three to five year window, you got plenty of time to ride the market up and down and watch what it's doing and do, you know, be and be perfectly safe doing that. So yeah, I I would sit down

doing that. So yeah, I I would sit down with that guy and make sure that you feel good, both of you and your fiance, soon to be husband, feel good about the account that it's in. What's the

brokerage account invested in? And I

want to understand that. And once I understand that, say, "Okay, the purpose of this is I'm thinking about pulling this money out in 3 to 5 years, and I'm going to be adding some to it for a down payment. Is this okay? Is this safe?"

payment. Is this okay? Is this safe?"

And they're going to talk you through it and walk you through it, and then you'll, you know, then you make the decision if you want to leave it exactly there or not. But I think you probably do. It sounds sounds pretty good. And I

do. It sounds sounds pretty good. And I

really like that you're showing a lot of maturity because a lot of 20 year olds that get married, they want to buy a house 5 minutes later. And I love that you're willing to um take a take a

breath and we want to save up even more.

We're talking about buying, you know, completely debtree. That's pretty

completely debtree. That's pretty incredible to think about. How about

that for a cool goal if you're 20? Y

>> that's a pretty cool goal.

>> But I mean, she and she's starting with 85, which will be 100 soon. You know

what I mean? Like it'll it'll start snowballing for sure with the interest and then adding to it. So, well done, Carly.

>> Ashley's in Washington. Hi, Ashley.

>> Hi, Dave. Hi, Rachel. How are you guys?

>> Great. How are you?

>> I'm so good. Thank you so much for taking my call today.

>> Sure. What's up?

>> Well, um, so my husband is looking to switch jobs. I know he's feeling a lot

switch jobs. I know he's feeling a lot of pressure and stress about this because it would be a pay cut for our family and in the past I've proven that I'm not able to stick to our proposed

budget. My husband's current job is

budget. My husband's current job is really stressful and I would love for him to be back in a role where he loves the work he's doing and with a company that's morally in line with who he is as

a person. I want to be able to sit down

a person. I want to be able to sit down with him tonight and give him the reassurance that he can make this switch and it will be better for our family, that I'm on the same team as him when it

comes to budgeting and our future. And

I'm just really looking for some guidance on this. Um,

>> okay. To start with, to start with, you guys have a wrong assumption.

>> The only way my husband can do something he loves with people that have a value system that's aligned is if he makes less money. Why the flip?

less money. Why the flip?

Why don't he go make more money with people that I like doing something I love?

>> Well, I mean, this job came up. This job

>> I know. And it sucks.

>> Yeah.

>> It's not a dream job. It's a It's a nightmare job. I'm going to take a pay

nightmare job. I'm going to take a pay cut because I'm stressed instead of going and looking for a pay increase in a better setting.

>> Okay, that's fair. That's fair. So, just

a little bit of background.

We're completely debtree. We have our house paid for. Um, our current net worth is about 1.7 million.

His gross annual income right now is 160,000.

He would it would be 121,000. But here's

the deal. We would get to see him more.

So right now with the job that he's in, >> why not take a job making 180 where you get to see him more?

I Well, just Okay. So, with his job, he's a paramedic.

>> Okay. Paramedic. Okay.

>> Yep. He's a paramedic and right now he works for a com a flight company and he's a manager. Um, so he's in administration. He really wants to go

administration. He really wants to go back to doing medicine and I really want to be able to support him in that.

>> I do too. But I don't this natural human tendency to assume that in order to go do the thing I love doing it has to mean I get paid less is not it's a it's

faulty logic. I I do what I love doing.

faulty logic. I I do what I love doing.

I get paid more every day.

>> Right. Yeah.

>> So I mean you know is there a different way to skin this cat? Yes there is. And

so let's take that off the table. I

really want to challenge you all on this thought train because it's um you know I want to support my husband and he takes a 60% pay cut so he's happy bull no I I

I'm not going to support that now I've set that aside now let's answer your question though hun about uh uh what the the you want to be able to talk about do sticking to a budget right >> yes

>> how can she do that right >> well what's what's his take on all of this Ashley I want to know from like the job perspective the budget all of it what's his level of involvement and

conversation and effort and everything.

>> Yeah. So, he is the one that found you.

Like, he found Dave Ramsey a few well, probably 10 or 15 years ago. And when Josh and I

got married, he was like, I really want to do this. Um, so from the start, we've been working our tail off to save, um, to pay off our house, to get rid of all

of our debt, and to be working.

>> We've done a great job. I mean, I was going to say $1.7 million.

>> So, the budget, Ashley, at this point, because you guys are in baby step seven, and we still say to budget regardless of your baby step, but you guys, you're going to have a little bit more flexibility um, to move within the

budget versus someone who's trying to find $1,000 and they're cutting stuff and they're going, right? So, you're

going to it's going to be a little bit of um it will be some discipline to make sure that you guys are tracking transactions that you know where your money's going, but even the detail of the budget can kind of expand a little bit. Does that make sense? You don't

bit. Does that make sense? You don't

have to be as rigid. Absolutely.

>> Um so, what I I mean, so yeah, Winston and I like we have a category for home where like all of our bills for the house go, subscriptions. Um anything we buy for the home, we have a line item for that like throughout, you know, if

it's random stuff that we need for the house. Uh food's a big category.

house. Uh food's a big category.

lifestyle is a big category. So, we have big categories in our every dollar budget. And then within those, you guys

budget. And then within those, you guys can go as specific or as broad as you want. But the the point is is that

want. But the the point is is that within every dollar, especially when it's connected to your bank, you're able to track those transactions and just stay on top of, hey, here's the amount of money we said we'd spend in these big categories, and we're going to stay

within those limits. And so, it just takes some time and discipline to get that as a new habit, but totally possible, Ashley. Totally possible.

possible, Ashley. Totally possible.

Heat.

[Music]

Heat.

[Music] Welcome back to the Ramsey Show in the Fair Winds Credit Union studio. I'm Dave

Ramsey, your host. Rachel Cruz, number one bestselling author, Ramsay personality, my daughter is my co-host today. Nicole is in Mississippi. Hi,

today. Nicole is in Mississippi. Hi,

Nicole. How are you?

>> Hi Dave. How are you?

>> Better than I deserve. What's up?

>> Um, so I'm having a bit of a dilemma.

Excuse me. I'm a little nervous.

>> It's okay. Um my fiance and I we get married next week on Friday.

>> Oh, congratulations.

>> We are.

>> Yes, very soon. Um we are excited about that. But I am still in the mindset of

that. But I am still in the mindset of my debt, his debt sort of thing. Um my

my dilemma is um I'm having a dilemma with using my $800. I'm on baby step one to throw at my credit card that I am

behind on. And my minimum is half of my

behind on. And my minimum is half of my take-home pay. So it's it's half of what

take-home pay. So it's it's half of what I make in a month. That's what my minimum is. And that is the only I'm

minimum is. And that is the only I'm sorry. What is your minimum? It's

sorry. What is your minimum? It's

>> about 2734.

What do you owe on this credit card?

>> 13,000.

>> And you have a $2,700 payment on $13,000?

>> Yes. I fell behind um for a few months and then um it's just interest added on and it's becoming unbearable and I don't want

>> So that's not the normal minimum payment. It's all the back payments.

payment. It's all the back payments.

>> Yes. Mhm. It's normally around $300 or $400.

>> Oh, that sounds more like it. Okay.

>> Yeah.

>> All right. So, um

>> And you bring home what? 5,000 6,000 a month?

>> About 5,000? Yeah.

>> Yes.

>> And and you're you're getting married and he has how much debt?

>> Um he has about 40.

>> Mhm. And you only have 13 or you have a car and everything else or what? Um, so

together we have about $79,000 worth of debt.

>> Okay. Which means you have another 20 something other than this 13.

>> Yes.

>> On what?

>> Um, it's personal loans. Um, I owe a family member. It's a various of other

family member. It's a various of other things.

>> Okay. And so your household income is about 80, right? Your income. And what's

his?

Um, so my income is about, like I said, that's 5,000. Then his is about the same

that's 5,000. Then his is about the same a month as well.

>> Your take-home pay? Yeah. Okay.

>> Yes. Mhm.

>> All right. So, you're that's $120,000 take-home pay. And so, you're probably

take-home pay. And so, you're probably making 150 or so. Okay. All right. Um,

and we need to pay off 80 overall. So,

>> yes.

>> Really? Um, you you don't really have a minimum payment of $2,700. You have a single a single payment of $2,700 to get current.

>> Okay.

>> Right. Cuz the next month it won't be $2,700. It'd be 300.

$2,700. It'd be 300.

>> Well, if I if I don't pay on it, if I don't get caught up on it.

>> No. If you pay 2,700, the next month your payment would be 300.

>> Yes, that's correct.

>> That's what I'm saying. Okay. So, um,

what I would do is just call a credit card company and ask them to roll that in and reset your payment.

Well, I called them. Um, I don't have a problem saying their names. Capital One.

I called them and they said that there's nothing that they can do.

>> Okay. Then there's nothing I can do.

You're not going to get paid.

>> How's that? You get nothing, honey. If

you don't work with me because I got no money. I can't pay you $2,700.

money. I can't pay you $2,700.

>> I can pay you I can pay you $300. If you

want to reset the payment, that's fine.

Probably I need to talk to your supervisor because apparently your two brain cells aren't rubbing together.

This is how you talk to Capital One.

What's in your wallet?

Stupid. You know, I mean, come on. Of

course, they can roll that in. They do

it every day, all day long. But you got some junior birdman on the phone up there in a cubicle, right? And so you got you got to nail them. That's what

you have to do. And then and then then catch them up anyway because you got to get the whole stupid thing paid off. And

remember how they treated you the next time you get ready to whip out that card or do any business with this company.

>> Oh no, I'm done. I

>> cut the stupid thing up >> and let them know that we're done. Uh

we're breaking up here. You aren't you aren't all you were cut out to be.

>> I don't care which uh particular movie star says gives me financial advice on your stupid commercials. Oh god. So it

would it would hurt me to close it and pay them later.

>> Doesn't matter.

>> Doesn't matter whe you close or not, you still got exactly the same problem.

>> So >> yes, that's true.

>> Yeah. So you know, here's what you can I just call and mess with them and just, you know, be be um start out.

>> You're nice, Nicole. You got to kind of hype up your you know, hype up yourself.

>> Start out pleasant and then end up nasty before you get off. Yeah. get ready to dial the nasty up pretty quick as you're on the phone if their brains aren't working because sometimes apparently they aren't. And so, you know, now then

they aren't. And so, you know, now then the trick is it doesn't matter because in the end of just a few months, you're going to have a zero balance on this because you're going to get paid off cuz you make $120,000 after you get

married and y'all need to clean this $80,000 up fast. And one of the first orders of business is this credit card cuz it's probably one of the smallest debts you all have, right?

>> Yes. So, we're going to list that in the debt snowball, smallest to largest, and I'm going to pound their face in, and it's going to sound like $2,000 a month or $3,000 a month, regardless of what

their minimum payment is. Your minimum

payment is I want you morons out of my life forever.

Okay? And that I'm I'm teaching you to be a little bit angry about this because that's a good thing. That'll that'll

push you through this and cause you to just pound their face in with the math as you're doing your budget. You're

going, "Take that, Capital One. Take

that Capital One. Take that Capital One.

30 years ago, 35 years ago, American Express called Sharon and asked her why she would stay with a man that wouldn't pay his bills.

And I'm still pissed.

35 years later, I'm still pissed. I

would still find that guy if I could find him, you know, cuz she called me crying at work like I thinking the same thing, right? And so, oh my god, these

thing, right? And so, oh my god, these guys, they're just they're just it's a ridiculous company.

>> And Nicole, for you and your husband, I mean, make this a year, the first year of marriage and you guys are working extra at night. Like, I mean, you're just you're high-fiving in the middle of the night because you don't see each

other. I mean, like, make it really be

other. I mean, like, make it really be done with it. Like, get really, really aggressive with this. And then it's done forever. And then for the rest of your

forever. And then for the rest of your marriage, you guys have no debt. You

have your whole income, >> no stress. It's it's a beautiful thing.

And so the more intense you guys can be in this first year and if you guys want kids later even before the kids like this is this is the time to do it.

>> Yeah. So if you don't pay them 2700 and you pay them 2100 because they're first thing on your debt snowball and that's all you squeeze out of the first month's budget >> or a thousand whatever >> you pay them a whatever you pay them I don't care then the next month you pay

them a bunch more and the next month you pay them a bunch more. I don't really care what they think. It's irrelevant.

Just just pound.

>> What sucks is the is the interest, right? You get 26% on this amount, you

right? You get 26% on this amount, you know. But it's on the whole thing

know. But it's on the whole thing anyway. It's on the whole It's on the

anyway. It's on the whole It's on the whole 13,000. That's true. Period. It

whole 13,000. That's true. Period. It

doesn't matter. The interest is the interest until you get it paid off with that credit card.

>> Yeah. Get Get it knocked out. What's in

your wallet? Oh god. Money now cuz I don't have you people in my life.

>> Yeah.

>> Yeah.

Oh man. I tell you what, I spent the first part of my career doing a dumb thing. I would bring in co people we

thing. I would bring in co people we were coaching and I would call and negotiate with the credit card companies and set payment plans for the people we were coaching and it taught me to hate

credit card companies because they're so moronic and I'm still it still rings in my brain and just that I I cuz I just know the conversation she had it just

pisses me off Deal.

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Jamie's in Fort Worth, Texas. Hey Jamie,

how are you?

>> I'm good. How are you?

>> Better than I deserve. What's up?

Okay. So, I have been religiously listening to you and your team every single morning on my drive to work, which is about an hour and 15 minutes.

And I have had gazelle intensity by myself. So, I've tried introducing it

by myself. So, I've tried introducing it like to my husband and the problem is is that we've sat down and we have looked

at a budget. I have the Every Dollar. Um

I am still working on assigning Every Dollar. Um but I've got the app for him.

Dollar. Um but I've got the app for him.

Um where he's doing it. We have about $95,000 in consumer debt together. Um we're a blended family. He has three. I have

blended family. He has three. I have

three.

And um the problem I'm having is that I am wanting so badly to get out of debt.

Um but I am the primary like bread winner because he >> he's in a roofing business and well we've had some issues with getting Ruth

um approved and uh it's just been really slow. So there's a lot of inconsistency

slow. So there's a lot of inconsistency like with his with his paychecks coming in and it's causing a lot of um resentment like on my part and probably

toward him to where like we went to counseling and we had to have an agreement to where I could only talk about the budget for an hour on Tuesdays and an hour on Friday. So that's kind of

where we are. Um, and I just need to know what to do to move forward so one we can be a team together and how am I supposed to

do this in >> Jamie? Can I ask is the resentment from

>> Jamie? Can I ask is the resentment from you coming from that he's not fully on board with the plan and you guys together are like, hey, regardless of who's bringing the income, this is what we're doing. We're paying off debt as

we're doing. We're paying off debt as fast as possible. Is that the resentment or is it that his he can't seem to keep an income because the work is so wacky and you don't really know what's going on there.

>> Yes. Yes, that's that's what it is. Like

because he still has he's got a child that's in in college and then the other one has already graduated, but >> I'm like that's irrelevant to his income.

>> Well, it is when he can't afford to pay all of the bills that he came in with.

Then now I'm responsible for for those.

And so I >> mean you mean he's you mean he's paying his kids college tuition and not paying his own bills?

>> Oh, he Well, right. I paid everything last month. I paid he's got about $4,000

last month. I paid he's got about $4,000 that go out to his kids and their college and car payments and insurance and child support and all of that and

isn't able to contribute to our house.

So, in the month of September, we have no money coming from >> married.

>> Um, well, actually, we will be married one year on November the 4th. And I

wanted to go on our anniversary trip to the um, money and marriage in Nashville.

And I was like, I know that we're in debt. I was like, but I feel like this

debt. I was like, but I feel like this is an investment like in our marriage because we need it. And he disagrees with me. I was like, well, I could I can

with me. I was like, well, I could I can pay for that, but he said he'd rather go on a cruise. But I'm not doing that.

>> I think you need a new marriage counselor >> because the marriage counselor said that you can only talk about a budget 2 hours a week and a budget isn't even the

problem.

>> Yes, I I agree. So that that was you getting smacked into the corner by a marriage counselor as being unreasonable trying to ask him to be reasonable with his contribution to the household.

That's not a budgeting problem. That's a

values and income >> priority problem.

>> That's a priorities problem. I'm

choosing uh to put $4,000 in a college student's car payment >> instead of taking care of my new wife.

>> Um that's a problem. That's not a budget. That's not you talking about

budget. That's not you talking about Ramsay or you talking about a budget issue. That that's a that's a problem of

issue. That that's a that's a problem of respect. And who's you know you guys he

respect. And who's you know you guys he didn't ask you about that. He just

declared you get nothing and you have to feed me this month.

That's not a budget problem. And so I think your marriage counselor is a weenie.

I think you need to get a good strong marriage counselor that will sit down and talk to both of you clearly about your priorities and your communication over those priorities. And you guys did

a lousy job of setting this up prior to marriage cuz this is a barrel of fish hooks you both walked into and you did no planning about it.

>> That is correct.

>> Yeah. And that's and so you're reaping that right now and it's just harsh. I'm

so sorry. But yeah, I I I'm you can have two free tickets to come to Marriage and Money. We'll give it to you.

Money. We'll give it to you.

>> We'll give them to you, but I don't also don't want you to think that that's the answer to your problem.

>> You need more than a marriage and money weekend at Ramsey will give you.

>> You need in-depth crisis marriage counseling. You have not even been

counseling. You have not even been married a year, and this thing is unraveling rapidly and before my eyes as you talk about it. It's really scaring me for you guys.

I I feel that also >> he's so he's so checked out in what his new wife's needs are >> that he's not even dealing with it >> and that it's again Jamie you're not

being unreasonable right I'm like do you know what I'm saying like like you're not crazy like the fact that that you're like this feels off this doesn't feel right I don't feel supported I feel like I can't believe he's paying all of this money that he's barely making all the

way over there like where he can't even contribute to our own household like I mean it'd be different if you guys were making a crazy amount of money and you were debtree and you guys both chose to still support the kids while they were

in college, right? Like that that was agreed upon idea as your new marriage, but it's so splintered right now.

>> Yeah.

>> And then you're kind of getting the the short end of the stick.

>> I agree.

>> So, what is it? What What kind of a business is he in?

>> Um, he's in the roofing business. Um,

>> he doesn't make he doesn't make money in roofing. Why?

roofing. Why?

um he he doesn't want to go and knock doors anymore. He's he's 54. Um and he

doors anymore. He's he's 54. Um and he has some people that work underneath him. He basically works off of referrals

him. He basically works off of referrals and um because he's been doing it for so long, >> but he's not got enough. He is correct.

Um I have told him he needs to find something else. So, we just had a

something else. So, we just had a conversation yesterday and I was like, "I don't care. I don't care what you do.

Um, either if you're not going to be working. Um, then I need you to help

working. Um, then I need you to help more around the house. I need you to pick up kids. I need you to drop kids off. I mean, I really that's not really

off. I mean, I really that's not really an option.

>> That's just I mean, you you really didn't mean that.

>> I think she's just I think she's craving something.

>> Well, that's not work.

>> Some kind of initial. I want him to go make some money.

>> Well, I do and I I do too.

>> Yeah, I think that's I think that's what he needs to do and take care of his obligations which includes his kids and his wife and you take care of your obligation which includes him and you

know your all's life going forward, your kids. And so, yeah, um you got you guys

kids. And so, yeah, um you got you guys really need to get back to another marriage counselor and uh get in touch with your church and ask them who a good strong marriage counselor that can guide

you guys through this. and um uh you're going to have to have a reset, a solid reset on the expectations of this going forward and then live into those. And 2

hours of budgeting a week doesn't fix this. And again, I'll give you two

this. And again, I'll give you two tickets. I don't even think you'll come,

tickets. I don't even think you'll come, but um >> yeah, Jenna will pick up. We'll give

them We'll give you guys some.

>> Yeah. Just We'll call you. We'll put

them at We'll call >> and uh we'll make arrangements right now on the phone. You hang on. I'll make

arrangements.

>> We can email them to you or something.

>> Yeah.

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[Music] Samantha's in San Diego. Hi Samantha.

How are you?

>> I'm doing well this morning. How are you Dave?

>> Better than I deserve. How can we help?

>> So forgive me. I'm a little bit nervous and I feel all over the place, but I am trying to make some future decisions

without making bad decisions for a future wedding. And um we had a lot of

future wedding. And um we had a lot of big changes this year. I got married and I bought a house. So, I would love some Dave wisdom.

>> Okay. A future wedding, but you got married.

>> I got lost.

>> Yeah. I was hoping you'd catch that. So,

my husband and I, we've been together for 5 years. Um, we lived with some family on property for a little while to save for a house. We found a house a

little bit sooner than expected. So, we

decided that the best thing to do would be to get married, get this house, and we would save for an official wedding later on. I had heard you say that would

later on. I had heard you say that would be a good decision to someone on the show at one point. So,

>> okay.

>> It felt right for us in that. better

than it's better than some of the other stuff you could have done in that situation. So, I'm I'm with you. Yeah.

situation. So, I'm I'm with you. Yeah.

Good.

>> Ah, thank you. I got Dave's good old Matt. So,

Matt. So, >> check. Survive that one. Okay.

>> check. Survive that one. Okay.

>> We are 25 debtree. We bought our house and we are having this wedding on a cruise ship in March with family and we have about $3500

that we need to just save and pay off for that.

>> Cool. Well, you could do that by March.

>> Yes, we can. Um, we also are I just got the Every Dollar app and I'm looking at like margin and it's stressing me out like crazy. My husband is like a turtle

like crazy. My husband is like a turtle in a hurricane and it's like we got this.

>> And well, at least you married a stable guy.

>> And I'm like, is this guy real? Because

he sounds like I Dave Ramsey. So, He's

never read your book.

>> Are you Are you the hurricane?

>> Oh my gosh, he is going to love that.

>> That's so funny. I never heard a turtle in a hurricane. I've heard a turtle on a fence post, but I never heard a turtle in a hurricane. That is a great one. I

will use that.

>> All right. So, what is what is your household income?

>> So, we bring in 8,000 a month. Okay.

>> Is what? And he's not worried because he thinks you can have 3500 out of 8,000 between now and March.

>> Yeah.

>> Okay. And why are you worried?

>> I have been a hurricane prior to meeting him. And this whole talking about money

him. And this whole talking about money and having an app where we see every time we go to the store and Starbucks has been new and it's revealing >> budgeting. It is. And it's so scary.

>> budgeting. It is. And it's so scary.

>> Yeah.

>> And no, it's just uncomfortable and awkward. It's not really scary. It's

awkward. It's not really scary. It's

very certain.

>> Yeah.

>> Yeah. It's revealing is what it ouches.

It touches places I didn't want people to see. Yeah. Oh, but Ouch. Yeah. I got

to see. Yeah. Oh, but Ouch. Yeah. I got

you. I'm with you. That makes sense.

>> We became We became I became I never I had debt prior to the relationship. He

never did. So, I worked really really hard and he helped me and so did you guys. Oh my gosh. So, we're here now and

guys. Oh my gosh. So, we're here now and I want to make sure I don't put myself back in that boat. I know I won't.

>> Good.

>> But >> well, how about we How about we won't?

>> Yes. I know we won't.

>> Yeah. You and the turtle work together.

>> Big with a big picture. I'm like the worry wart on the turtle. Like how do we save? How do we invest? How do we

save? How do we invest? How do we family? How do we do all that?

family? How do we do all that?

>> Well, number one, just like you did before, how do you eat an elephant a bite at a time? Okay. Okay. So, you lay out a game plan and you look at every dollar together and you say, "If we only

spend X and Y on those two things, we will have the money to go on the cruise and do the wedding. If we blow the budget, we will not have the money to go on the cruise and do the wedding. So,

let's lay out the plan and stick to the plan so that our best life ends us on a cruise in March doing a wedding."

And then all of a sudden, everything calms way down. But what ends up coming is a lot of nos because you have to look at yourself and go, "No, I can't do that because I'm going on a cruise in March

to do a wedding." Oh, no. We can't go over there because we're going on a cruise in March and doing a wedding. Oh,

we're not able to join you tonight. I'm

sorry. Cuz we're going on a cruise in March to do a wedding. And all of a sudden, all those nos start popping up.

And that's what you're not used to. And

that's okay. That's a new thing. It's a

new thing for you. It's okay. Samantha,

when you guys did the every dollar budget for the household, how much do you guys spend on essentials? Do you

know off the top of your head? How much

it would cost to keep everything running like food, electricity, you know, mortgage, all of it?

>> 5,000.

>> Yeah. And that's with like because we have animals and >> Yeah. Okay. So, like 3,000 a month

>> Yeah. Okay. So, like 3,000 a month margin.

>> Yeah. You could do that in like two months Samantha.

>> So, I fear that maybe the wedding wasn't the like fear. It's after that and the next big goal. Um, he's confident that

there's going to be an add-on to our house and >> save up and pay for it. Just like you're doing the work.

>> Yeah. And he wants to do some real estate at some point and I just I don't have any of that wisdom. So,

>> it's okay. Just just let's let's just do one thing at a time. Let's let's build a little bit of confidence by doing the actual saving and the wedding. and we've

combined our finances and we're working together and we have a plan that we are going to stick to to hit our goals.

These are new words. Used to be me, me now and I.

>> Yeah.

>> And now it's we and us.

>> And um and you know, and then first we'll get the uh first we'll get the cruise wedding out of the way and then we'll start talking about okay, how much is the add-on and what's that going to cost and then let's build some wealth

because someday we'd like to do some of it.

>> Yeah. It's just it just beuns. It's just

you you just chip away at it one little thing at a time. One little thing at a time and and you keep laying out the numbers and the numbers will guide you right through it.

>> It's too Samantha remember like none of this is urgent. I mean the wedding to a degree in six months, right? So we want to save for that but >> the house renovations, the invest all of that like you're okay. You guys are good, right? So nothing has to happen

good, right? So nothing has to happen tomorrow.

>> So give yourself some of that like kind of grace and patience in it because I'm an urgent person too, Samantha. I'm I'm

wired more like you. So, I totally get it.

>> Glad I got you today.

>> Yes. No, I get it. I really do. Um and

the good thing about our turtles, cuz Winston I feel like Winston's a turtle, too, is that they they love Excel and spreadsheets and stuff and they'll map out every year of like, "Hey, here's how much we could save per month to get this

goal of this rental house or whatever the thing is."

>> And you really lean in on their strengths and then you're the fun >> hurdle. Yeah.

>> hurdle. Yeah.

>> Yeah. You totally have to do t-shirts for the cruise. the hurricane and the turtle t-shirts. Maybe maybe you know

turtle t-shirts. Maybe maybe you know and with a little bride bouquet and the whole bit on the Oh, this is >> I hope y'all don't get a hurricane on that thing.

>> No, I totally I said t-shirts. The

hurricane the hurricane saying it out loud though. You don't want a hurricane

loud though. You don't want a hurricane on that. And now I present you hurricane

on that. And now I present you hurricane and tortoise.

>> Oh my gosh.

>> Yeah, this is so great. It's so fun.

>> It's good. Samantha,

>> you're fun, Samantha. You're fun. Thank

you. And you're going to do great.

you're going to do better than your feelings are telling you because you've never done this successfully long enough to build confidence yet.

>> And uh Rachel is on the other side of that in that she's got a decade plus of successfully working with Winston. And

she's right. Winston is more of the tortoise uh than the hair. And uh he's very steady, very predictable, doesn't do drama. And um and so they've they've

do drama. And um and so they've they've had a decade of working together. And

that has now you've got great confidence in that.

>> Yeah. Maybe the first day you didn't.

>> Yeah. And sure. And the and the beauty too of all of this that you guys will learn in marriage, but it reflects in your money is you do you get to be yourself. You still get to be fun

yourself. You still get to be fun Samantha. You get to lean and have the

Samantha. You get to lean and have the blessing of having a spouse who is different than you and has strengths that you don't have. And then you're going to be a gift to him because you're going to have strengths that he doesn't

have. So it really is this ying and

have. So it really is this ying and yang. And I think that's the that's the

yang. And I think that's the that's the beautiful part of it is that when we say working together as one, I think some people freak out because they think, "Oh my gosh, I'm going to lose who I am and all this stuff." And no, you be who you

are. And the beautiful thing is your

are. And the beautiful thing is your values are aligned. You guys know where you want to go in general together and how you get there may look a little bit different, right? But but those are the

different, right? But but those are the conversations you get to have as a couple. And so leaning on each other in

couple. And so leaning on each other in that I think is beautiful.

>> Turns out turtles have fun, too.

>> They do have fun.

We help them have fun though. We create

a little chaos.

>> Yeah.

>> To create the fun.

>> I'll never forget's like Rachel's job is she's the fun girl. That's Rachel's job.

>> And our premarital counselor, I'll never forget looked at him and was like, "Wow, she's pretty urgent." And I was like, I I am I am an urgent person. So, I get it, Samantha. I totally get it.

it, Samantha. I totally get it.

>> Y'all are going to do great. You're

going to do great.

>> Hurricane and the Turtle. This is great.

It's a great radio.

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[Music] Dale in Missouri. Hey Dale, what's up in

your world?

>> Oh, not much. How are you guys doing?

>> Better than I deserve. How can we help?

>> So, you know, the holidays are right around the corner and my wife and her family have quite a few traditions for

Christmas time and they are starting to get rather expensive. Uh, for example,

we uh each get a book from Santa, like a children's Christmas book from Santa, and there's about 12 of us. And we have

stockings, which averages about $1,000 to $1,200 total. And then we have gifts for everyone. There's about again 12 of

for everyone. There's about again 12 of us for that. So my question is >> I'm sorry 12 children's books for 12 adults.

>> Adults. Yes. And

>> her family. Is this her brothers and sisters?

>> So it's her sister, her father, and um her sister's children.

And now one of her children, her sister's children has their own child.

So now there's a baby.

>> Okay. So this isn't your all's children or your grandchildren?

>> No.

>> Okay.

>> This is And so my my wife was really big on her grandparents.

She has fond memories of Christmas at her grandparents house. They did the same traditions.

Um she just wants to continue >> those traditions.

>> How long have y'all been married?

>> Um well it'll be 15 years. So you've

done this for 15 years.

>> Yes.

>> Okay. And are you buying books? Is

everyone buying 12 books or is it one book per person?

>> So it's one book per person. Um but it's usually my wife and I and her sister that are kind of responsible for all the books.

>> Well, I mean it's it's 12 children's books. It's not a lot of money. I don't

books. It's not a lot of money. I don't

What's the big deal?

>> Well, they're about $30 a piece. So, I

mean, yes, it's not a lot. Like, it's

$360, but the books are I'm not a very big traditionalist, so they're kind of I don't want to say a waste, but I am. They're kind of a waste

because we just we look at them for like 20 seconds and then they just go away.

And um and then we we we go on to the next thing.

>> Okay. So, the purpose of the books, I'm just curious because I don't understand while these adults are getting children's books for 20 seconds. What

What is the purpose of the book?

>> It It's just the tradition they've had.

>> I know, but I mean, when they were children, maybe, but I don't know. Once

you're 40, you don't really need a children's book. What's the

children's book. What's the >> Right. That's the That's my my question

>> Right. That's the That's my my question is >> Well, I want to I mean, if she was on the phone, why would she tell me that they're still doing >> because what they've all It's just what they've always done.

>> I know. But I mean, I know, but it's just that's the tradition >> is everyone gets a new book for Christmas. It's a Christmas book

Christmas. It's a Christmas book tradition. Okay. All right.

tradition. Okay. All right.

>> And and it has like a little note from Santa in it.

>> Well, those are hard to get, but Okay.

>> And so that's one thing. And then we have stockings where people can spend $2 to $300. And it's most again my wife and

to $300. And it's most again my wife and I and sister for all the stockings.

So they put like $200 or $300 in each.

>> So what is your all's net worth?

>> Not enough for 200.

>> No. What's your net worth? No, really.

What's your net worth?

>> Uh you mean like total or?

>> Yeah. Like how much do you have in your retirement account? Is your house paid

retirement account? Is your house paid for? All that kind of stuff.

for? All that kind of stuff.

>> So the house that I paid for has got about 100,000 left.

>> And what's it worth?

>> It's worth 200. And

>> Okay. And what's what's in your retirement accounts?

>> So retirement, we're we um we work with a u a pension. So

>> So you don't have any retirement savings?

>> Well, I do. I have uh 100,000 saved up.

>> And what's your household income?

>> Um roughly about 210,000 a year.

>> Okay. And this whole thing is like three grand we're talking about, right?

>> Well, yeah. Well, three grand for like the stockings.

>> Well, the books are 300. So, I mean, it's like three grand for the whole thing, give or take.

>> Yeah. And then there's gifts also that we also do, which could also be another three or 4,000. Do

>> y'all have children?

>> No.

>> Okay. So, this is the whole Christmas then, >> right?

The problem is that we don't really put aside for this even though we know it's coming. 200,000

is three grand. It's one and a half% of your of your income.

>> I I Yes, I know that. But my wife and I I'm not going to throw it all on her. Um

my wife and I like to to um we're not good budgeters, I would say.

And so my my question >> Well, I I guess the thing is this. I I I do think just from a marriage communication standpoint that um you

know this thing has continued to go on.

Uh and some of it's frankly doesn't even make sense. Um but at least you need to

make sense. Um but at least you need to understand from her why this is $3,000 worth of important.

>> Yeah.

>> Cuz it's no longer $3,000 worth of important to you. Probably never has been actually.

>> No. in the whole 15 years, but now you just been going along with it.

>> Stockings is that is crazy though. The

amount of money you always spend on stockings. Like you can get some great

stockings. Like you can get some great stocking stuffers and some reasonable small things and it doesn't have to add up to $1,000.

>> Honey, you know, I understand this is important to you and I'm willing to do it simply because it's important to you, but you also need to hear it's important to me that we use a little touch of common sense on this.

>> Well, and I think the biggest problem, Dale, is you guys aren't do you you have no planning with your income. you guys

aren't good budgeters, you already said.

So, it feels like you're flapping in the wind and it's like this here and it's kind of freaking you out because y'all don't have control in general. And I

really think if you guys lived on a written plan, if you guys we'll get you the Every Dollar app, but you both if you both lived on a budget and you knew exactly where your income was going and you both stuck to it,

>> this is not that big a deal.

>> Then it would I don't think it would feel as out of control. I think it feels out of control as a picture of your entire financial picture. So genuinely I would >> you're choosing to pick on the one thing that you can pick on while the whole

thing's out of control.

>> Rachel's right. So let's get the whole thing in control >> and then make >> we can use this as a jumping off point for the discussion for that. But I think it's also individually on the budget.

It's okay to talk it through. I mean,

we've done that inside of our family and even with our extended family because I have three kids who are married and have eight grandkids. And so, there's 16 of

eight grandkids. And so, there's 16 of us and uh eight adults and every adult buying every adult something got out of hand and it just was dumb. We just

>> we all we all have the money >> just draw names >> but everybody we just said we're going to draw m it's just more fun for us to not have to go through all that >> exhausting >> and less you know less trying to figure

out what Bill wants you know or what Winston wants. It's just a lot and how

Winston wants. It's just a lot and how do you how do you buy something for me because anything I want I just go get it.

>> So how do you buy something for me?

Impossible.

>> So hard.

>> It's impossible. So, you know, it's just, you know, that that whole thing is just we need to just So, we just dumbed it way down and we're going to concentrate on the kiddos and the adults.

>> We draw names as adults.

>> Yeah, but it's one thing. I mean, it's not it's not like eight things, right?

So, that's okay. It just calm the thing down.

>> No. And I And I'll throw this out there, Dale. Like, they don't have kids. So,

Dale. Like, they don't have kids. So,

this is their family.

>> It is her family Christmas >> and it's her family Christmas. So, there

is a level of um >> he he's over it.

>> It's her family Christmas. It's He's

He's done with He's done with children's books for adults.

>> That's my question is how you get No, how you >> don't run out of books. I guess they don't have to be Christmas themed.

>> Well, Rachel, we could help them.

>> There can't be like >> We could probably make them a discount if they want to buy a batch of Rachel Cruz children's book.

>> Yeah, but I don't I don't know if they're Christmas themed children's books is what I'm saying. I'm just

curious how they get so many.

>> I could probably add a note from Santa to I know Santa and probably get him if they bought a whole box a whole case of your books.

>> Pull some strings. We could probably do that. I bet we could get the old guy to

that. I bet we could get the old guy to help us out.

>> Maybe we'll save Dale's Christmas this year with that, Dale.

>> Oh man, that that is hard though.

>> Hey, it's the holidays. It's a good time to talk about it. Now is the time to talk about it. Not December second.

>> Yeah, we're in October. It's great.

>> This is the time. By the way, all of you need to um Speaking of Santa, he says to make a list and check it twice. So, you

need a Christmas budget. You need to make a list of who you're going to buy for and put a dollar amount beside each name and total that number and set that dollar amount aside. We used to do that in cash in an envelope and on the

outside of the envelope was the list of people and what we were going to spend on each person. And then that cash runs out of that envelope. Christmas be over, baby. That's it. This is what we're

baby. That's it. This is what we're spending on Christmas. That's it. Ding

ding. We're done. Cuz it's a neverending merrygoround otherwise.

We just keep hitting the submit button

on your cart. Have to stop that.

[Music] [Music] Welcome back to the Ramsey Show in the

Fair Winds Credit Union studio. I'm Dave

Ramsey, your host. Rachel Cruz, Ramsay personality, number one best-selling author, host of the Rachel Cruz Show, is my co-host today. She's also my

daughter. Open Phones at8255225.

daughter. Open Phones at8255225.

Jenna is with us in Indianapolis. Hi,

Jenna. How are you?

>> Hi, I'm good. How are you?

>> Better than I deserve. What's up?

All right. So, I just recently found out that I am inheriting about $50,000.

>> Wow.

>> Um Yes. Uh definitely a blessing.

>> Who passed away?

>> I My grandmother.

>> Oh, I'm sorry.

>> Thank you. Um I am just I'm 25 and I do have a lot of student loans um as well as a car loan. I have about $95,000

um in total debt. Um 65,000 of that is my student loans.

>> Um >> I am just a little bit confused on where to put it all because >> I don't want to throw everything at my federal loans. Um so I'm just kind of

federal loans. Um so I'm just kind of confused about where to go with all of this. Um

this. Um >> I'm curious why would you not throw it at your federal loans?

>> Because I um was approved for the um public service loan forgiveness.

>> Um >> that's a scam. So, I don't think >> 1% of the people that apply for that end up getting it.

>> Okay.

>> Yeah. I wouldn't I wouldn't set my life up on that.

>> Well, and you get stuck in a situation that you may want out of and you feel like you have to stay in it.

>> 10 years everything has to go exactly perfect, including the federal government doing their job and those things never go to heaven. That doesn't

work.

>> So, um All right. Aside from that, so what do you make a year?

>> Um about 60,000 give or take.

>> What do you do? I'm a nurse.

>> Oh, good for you. That's a wonderful career for building wealth and getting out of debt. By the way, you have tremendous control of your destiny in that career. So, you can add hours. You

that career. So, you can add hours. You

can add an ER shift on the weekend, make a pile of money. You've got all kinds of options at your disposal. So, good for you. Good choice.

you. Good choice.

>> Jenna, what was what was left? You said

the 65 is student loans. What was the other 30?

>> A car card and credit card.

>> Car and credit card.

Um, I have a car loan for 28 and then just a credit card that has um 1,400 on it.

>> Okay, perfect.

>> All right. So, um, and what are you making as a as a nurse?

>> Um, about 60,000 a year, depending on if I pick up or not. It's about $4,000 a month.

>> You must have just started.

>> Um, yeah, I've been a nurse for two years.

>> Okay. All right. Cuz you probably could be making 80 if you just blink. Okay. Um

>> well and I'm in Indiana so it's a little bit >> I mean you're are you if you're in Indianapolis you're in a major metro market that you're being but yeah all right um

>> what we teach and what we have lived in our family for the last several decades is the fastest way to build wealth and stability

is to become debtree because when you don't have any payments you have control of your wonderful income. income

opportunities to build wealth with. And

that's the how the math ends up working.

And so we've taught people to get out of debt so that they can be generous and so that they can build wealth. The first

step, however, of getting out of debt is not borrowing anymore.

>> Mhm.

>> And so if you got a $95,000 inheritance and paid everything off, but continued to go into debt, you'd be right back.

>> Yeah.

>> We can't do that. Okay. Just like you can't have a patient that's doing something that's causing a health problem, you guys fix it in the hospital, but then they go back to doing the exact same thing and end up in

exactly the same health problem again.

Okay? Same thing, right? So, you have to change your habits that got you here.

Like, I don't borrow money for cars anymore. I'm cutting up this credit card

anymore. I'm cutting up this credit card and I'm going to get the Every Dollar app and I'm going to live on a decent written plan where my wonderful income will cause me to finish off the rest of

my student loan debt and get me and get me completely clear because if I don't have any payments, I can build serious wealth.

>> And that's would be my goal for you if I was doing that. Now, if I'm in your shoes, that means I'm going to pay off the credit card and the car, and I'm going to put the rest of it towards the

federal student loans, and um and I'm not even going to have any fun with it.

And I got to ask you then, if you did that, and you are committed to never borrowing again and living on a plan, would that make your grandmother smile?

>> Yes, definitely.

>> Which is one test I always use about inheritance. the person that left it, I

inheritance. the person that left it, I need to honor them by handling it in such a way that they're in heaven smiling.

Okay. And so, in other words, if you did something irresponsible and frivolous with it, she would not be smiling.

>> Correct.

>> Yeah. And that that's how I test it out against my am I doing the right thing with my grandmother's money that she left to her prized nurse grandchild that she's so proud of.

>> And what's wild, Jenna, have you done a written budget? Do you know how much

written budget? Do you know how much money it takes to run just your household? Whether it's like rent,

household? Whether it's like rent, lights, food, how much do you live on, do you think?

>> I I do a written budget. However, I've

had some recent changes. I've been

living at home for a while, but now moving back. So monthly I think it

moving back. So monthly I think it probably would cost me or yeah monthly it probably cost me about $2,000. I was

just >> And how much is your car payment a month?

>> It it's $560.

>> Okay, perfect. So that that's what's crazy is you just got a raise of $560 a month >> and with that so I mean you're you could be banking 2500 a month just in what you're doing right now. That's not even

overtime and all of it to get the rest of that 45 >> paid off you know. So, it's it is usually >> jumped in, picked up some ER weekends, which you can make double triple time on if you watch what you're doing, you can

uh in addition to whatever you're doing in your other 40 hours, you could get this all paid off in a year.

>> Yeah, >> that would be pretty cool.

>> The the only thing that I was considering at first is that my private loan has a higher interest rate than any of my federal and I pay almost $300 a month on that.

>> Okay. How much is the private loan?

>> Um, it's 23,000.

Oh perfect.

>> And the And isn't that the next smallest one anyway?

>> Um the highest one is 31, the car is 28, and then the um private loan is third.

>> Yeah, but you have enough to pay the private loan and your car.

>> Mhm.

>> Yes. So, do you think I shouldn't?

>> And the credit card. I think you can pay all three of those.

>> Okay. So,

>> I didn't have them broken apart. I just

heard student loan. Okay.

>> Yeah, that's Yeah. So, then what would be left would be the federal. So you I mean you don't quite have enough to do all of it, but you might have two grand left on the private and you'll knock it out in a month or so. And um yeah, pay

off your uh no your car is the one to be left. I'm sorry. You're going to knock

left. I'm sorry. You're going to knock out smallest to largest is how we list them. So the credit card, the 23,000,

them. So the credit card, the 23,000, then the 28,000, right?

>> Uh yes. Okay.

>> Okay. And then Jenna, how how much is your private student loan payment every month?

>> 300. Um, it's Yeah, the federal I have have it set to the lowest, which I need to change because I'm not even cover.

>> But that's what's crazy, Juna, is this what this money can do on >> be $800.

>> $860. Yeah.

>> Yeah.

>> Which is great. That and that gets thrown at the federal debt and then working extra and you get the snowball going really quick.

>> Yeah, that's what I'm saying. I think

you can be out in a year. You're really

going to change your cash flow position.

You're going to please your grandmother, honor the inheritance that she left you.

Um, and because all of us that have children and grandchildren love them and want to see them prosper and live a sustainable mature smart, wise life and all of those things

is what we're talking about. You're

doing good. I'm real proud of you.

>> Well done.

[Music] Ow.

[Music] Meow.

[Music]

[Music] Lissa is in Ohio. Hi, Lissa. How are

you?

>> Good. Thank you so much for taking my call, both of you. I really appreciate your time.

>> Sure. What's up?

um everything. Okay. So, I'm wondering if like my situation is one of the kind of rare cases where you would suggest that I should sell my house to pay down debt. And if not, then what should I do?

debt. And if not, then what should I do?

>> Okay. How much debt do you have not counting your house?

>> Um around five or 600,000.

>> Whoa.

>> On what?

>> Um my husband's school loans are 80,000.

My school loans are 45. Um, we have a debt consolidation loan for 45 and you know, two cars that are ridiculously like the worst thing you've ever heard.

I'll tell you if you want to hear it, but I don't think you want to hear it.

You might die.

>> Just give me the total.

>> Okay. Um, the total owed 67,000 on mine, 62,000 on my husband's.

>> Yeah, you're right. Okay. And the big the big thing I think the main reason I'm calling today is we owe the IRS $56,000 and they want to put a lean on our house

because we owe over 50,000.

>> Yeah. What um what's your household income?

>> Um I'm about to go back full-time making 111,000 and my husband usually would be making around 120 but he was just laid off at the beginning of the month.

>> And that's another part of the story is we have no emergency fund. So, we're

rocking it over here.

>> Gosh, I'm so sorry.

>> So, normally you would be at like >> I mean, if you get everything going again, you'd be at like 230.

>> Mhm. Yeah.

>> Yeah. And the house is worth what?

>> Um, it's probably worth between 770 and 800.

>> Okay. And, uh, what's it what do you owe on it?

>> 628.

>> Okay.

Well, you know, >> my worry there is like after agent fees and closing costs, >> you don't have you're not going to get enough to clean up the mess. So, the

mess is >> I think it would help us with the IRS and maybe to pay out the cars. You know

what I mean? The the negative.

>> How do you end up owing the IRS 56,000?

>> Oh man. Um, so me and my husband, we've been married 22 years. We had three kids very young, super broke back then. Um,

so we were on like Medicaid, food stamps, everything like that. We just

never had money, right? Then kind of like out of nowhere when he graduated college and then I kind of landed in my career, we started making money out of nowhere and we didn't realize that we weren't getting enough taken out of our

checks, yada yada. So one year after another year after another year, it was like we owed 12,000. We're like, what? I

guess it's just tax bracket. I don't

understand this. Next year was like we owed 20,000. We're like, why is this

owed 20,000. We're like, why is this happening? I don't get it. So genius me.

happening? I don't get it. So genius me.

This year I finally met with an accountant who told me that I wasn't getting enough taken out of my checks.

Also, I have like a side business um where I design and develop websites and stuff. So, I haven't been doing good at

stuff. So, I haven't been doing good at prepaying those taxes either. So, it's

like it's just a big hot mess of garbage that you know.

>> So, what do you make adult body?

>> Um I think this year and it was like 30.

>> Mhm. Okay.

>> All right. So, um

Well, what you have is a series of crisises.

>> Yes. And um you really have to probably work on uh three of them at least at once. And sadly the house won't fix

once. And sadly the house won't fix them, >> right?

>> So um you know what's your husband do for a living? What's his career?

>> Um he's a software quality engineer.

>> Great. Okay. So he's very employable.

>> Yeah.

>> Okay. Why did he leave?

>> Um he was in like a 18-month contract and they didn't renew it. So, okay. Just

just doing contract work. Okay. Which is

another time you didn't pay the IRS.

>> Well, I mean, it was a W2. So,

>> Oh, a contract W2. Okay. All right.

>> Anyway, so the good news the good news is he probably can lean in, >> put a smile on his face, a pep in his step, brush his teeth, and get a job pretty quick.

>> Yeah.

>> Okay. Because this is pretty employable situation. All right. So, number one

situation. All right. So, number one crisis reemployment.

>> Okay. Okay. Mhm.

>> Number two crisis, the IRS. Um, you need to get on ramiesolutions.com and talk to one of our taxendors local providers, one of the people we endorse in your

area, and they will be able to get on the phone and negotiate with the IRS a payment, an installment payment plan with no lean.

>> And even if they put a lean, they won't do anything with it because they don't want to pay $628,000 for a house.

Yeah, >> they're not going to do anything with your lean. So, what you don't want them

your lean. So, what you don't want them doing is leaning your checking accounts and cleaning out your bank accounts because that would be disastrous.

>> So, you do need to get them you need to get them on a payment plan. And of

course, part of that is you really do have to source this all the way to the bottom and make sure we sit with your tax person and if you need a new tax person, you can get them at Ramsey as

well. Sounds like you may. um and make

well. Sounds like you may. um and make sure you've got the right amount coming out of your taxes and that you are doing your uh quarterly estimates on your business and you file those and you file

that money on time. Once a quarter you're supposed to figure out what your profit is and pay tax on it.

>> Yeah.

>> That's that's the law and you're getting hammered with penalties and interest in addition >> to them coming after you for the balance. Okay. So that that's they they

balance. Okay. So that that's they they get after you on that stuff on that 30,000. They're wearing you out. So, you

30,000. They're wearing you out. So, you

know, get get on top of that with your systems and your processes. Um,

because you're you're not dumb people.

You're just highly chaotic and disorganized.

>> Yeah.

>> I keep saying we spend money like teenagers, you know, like the way >> Yeah, you've been doing that, too.

That's another subject I'm coming to in a minute. But, um, but the the you're

a minute. But, um, but the the you're just out of control. I mean, there's like no off button here. There's

frenetic. There's no plan. And so I what I'm telling you to do is get very systematized and nerdy about this. Like

I hired you to straighten out these people's finance. Only these people is

people's finance. Only these people is you.

>> Yeah. I actually did a literal PowerPoint presentation and Excel sheet before I called you guys to like understand what my picture was here. And

>> good. That's that that's a really good start.

>> First step actually >> and you got to get got you know that's you know I'm looking at the map and the little red arrow says you are here.

>> I want to get over there and now how do I get over there? Right? So that's what we're talking about. So job,

>> get the IRS under control first with a payment plan and with proper withholding and proper filings of your quarterly estimates, then we'll begin to pay them

off as quickly as we can. And then we come to the cars.

>> Yeah, >> they're both ready to get rid of them.

Like we have negative equity about this is absolute freaking insanity. If you

look up crazy in the dictionary, you're gonna see a picture of these cars.

>> I was expecting you to say that. I

thought you were gonna say me, but Okay.

>> No. No. I mean, this is just And because it's killing my friend Lissa.

>> Yeah.

>> My friend Lissa, these cars own her.

>> Yeah.

>> Well, it adds up to what you guys make a year, you know? I mean,

>> y'all don't make nearly enough to have those cars even if you paid cash for them.

>> Yeah. I think like our situation is that like we've never been late on a car payment on our mortgage, which is >> Are you going to try to justify this to me? Please don't.

me? Please don't.

>> No, no. I'm telling you that's why we thought we were okay.

IRS thing made me look at it. You get

what I'm saying? Yeah. That whole dumb thing.

>> You realize when you look at these cars that they're a glaring, >> not just a Dave Ramsey thing or a Rachel Cruz thing. They're just a glaring math

Cruz thing. They're just a glaring math thing.

>> Yeah. Yeah.

>> I mean, they're just pointing to you guys. Like you said, we spend money like

guys. Like you said, we spend money like teenagers, you know, and so you you you need to get you a couple of, you know, reasonable vehicles, very cheap, like

five, 6,000 bucks a piece, and you guys use your $230,000 income to clean up his freaking mess. So, you get your life

freaking mess. So, you get your life back.

>> Cuz you're not having fun.

>> Yeah.

>> This is highly anxietyinducing.

>> Yeah.

>> And when he gets a job back, you know, you guys are making great money.

>> Like insane. So the the >> quart million dollars a year will clean this mess up.

>> Yes. Yeah. You guys can do that. And

then if you could imagine making that amount of money and actually keeping it and it not going out in payments, you know, and you guys, >> trust me, that's all I imagine these days.

>> What if you any payments but a house payment?

>> Yes.

>> And you made a quarter of a million dollars a year. Oh my goodness.

>> You would have money.

>> Yep. I can't imagine it. And then you can move from a $6,000 car to a $20,000.

>> That's the thing though is even though that's an incredible income, you still have to live within that income because even with that great income, you guys were living >> beyond it, right?

>> You two just need to sit down and look at each other. Neither one of us are in Congress, >> right?

>> We can't spend like this anymore.

>> It's been like a drunken congressman. I

mean, it's out of control.

>> Drunken Congressman.

>> Well, they say drunken sailors, but I I like sailors, right? you know, sailors, bless their hearts, they're probably way fiscally responsible compared. So, um,

even with alcohol involved,

[Music]

[Music] [Applause] Ramsey Show question of the day brought

to you by Y refi. Defaulted private

student loans can drag on for years, but Y refi helps borrowers explore custom refinancing with a low fixed rate and a payment you can actually manage. Go to

yrefi.com/ramsey.

That's the letter yfy.comy.

Not in all states.

>> Today's question comes from Camila in Indiana. said, "I'm trying to wrap my

Indiana. said, "I'm trying to wrap my head around the commission method of giving money to kids. I have two who are five years apart. My oldest is 16 and

the younger one is 11. Should they have individual lists of tasks or should there be one big list that they both work off of on this on a first come

first served basis? Should give, save, spend be mandatory part of this participation regardless of what age?

And how do you recommend I mess I can't recommend age out of it.

>> So for the 16-year-old, I would just expect them to be helping around the house in general. So there's not necessarily a chore list. They're just

becoming an adult. And so they're going to be doing adult-like things. And so

whether that's cleaning the kitchen, picking up, um helping with cooking and laundry, like whatever that is for you, they just are part of helping run the household. And and then I I mean I plan

household. And and then I I mean I plan to do with what you guys did is at 16 that they should have their own checking account and the amount of money you would normally spend on them whether that's clothes, friends, gas, whatever

it would normally be, you just give them that set amount of money and then they have to manage it and >> with your with your oversight.

>> Yes. But they have to be the ones to say, "I'm going to spend X shopping, but then that means I don't have that money to spend for gas in my car." And so if the money runs out, they either get a job or they wait till the next month

because they have no more money to spend. And then the 11year-old, yes, I

spend. And then the 11year-old, yes, I would do a chorebased payment kind of plan. So they do have chores listed out

plan. So they do have chores listed out that they do and you pay them on there.

And then in that, yes, the give, save, spend method. Um, I would definitely

spend method. Um, I would definitely have them do because it's a great >> I like getting all three of those out part of her question. So let me reframe exactly what Rachel said. exact and give

you the exact same answer. But let's

let's look at it as an evolution. So you

teach children how to handle money age appropriately. We don't send the

appropriately. We don't send the three-year-old to the salt mines.

We might send the 16-year-old. No, I'm

kidding. But um

you expect more and teach more sophistication and detail and brain challenge to 16 year olds than you do three-year-olds. You know, if you say

three-year-olds. You know, if you say clean up your room to a 2-year-old or a three-year-old, um, we all know that have had kids that that means I'm going

to do about 80% of the work. He's going

to put a few toys in the box and he gets a lot of high fives as being the best room cleaner that God has ever made. Way

to go. You're amazing. And here's a dollar for cleaning up your room. That's

one of your chores. But we all know they're not real good at it. They're not

competent. That's not the point. The

point is to begin to make an emotional connection between work and money. Money

creates work creates money. And I know 54 year olds that don't know that lesson. So, it's good to teach children

lesson. So, it's good to teach children that work creates money. Even if it's a tiny little thing like picking up four toys. Okay.

toys. Okay.

>> Then we move on to something a little bit more complicated. You got to feed the dog. You have to clean up the toys

the dog. You have to clean up the toys yourself. And you have to empty the

yourself. And you have to empty the dishwasher. And you're seven or eight.

dishwasher. And you're seven or eight.

and you can accomplish these horribly complicated, ridiculously straining tasks. And the drama that goes with all

tasks. And the drama that goes with all of that is unbelievable. And then you get paid a dollar a piece for doing those all week or whatever the agreed amount amount is. And if you don't feed

the dog, and I have to, you do not get paid. Commission is work, get paid.

paid. Commission is work, get paid.

Don't do the work. Don't get paid. By

the way, ultimately, I mean, we'll let that go on for a week or two, but I'm just not going to do anything. Is not an option.

You're going to learn to work because my goal raising children was not to raise great kids. It was to graze kids that

great kids. It was to graze kids that became great adults. And so, my job is to make sure you brush your teeth so you have some so you're somewhat appealing to the opposite sex and you leave my

home later. Okay? That's the idea. Okay?

home later. Okay? That's the idea. Okay?

So, I'm trying to get you out of here.

That's the goal. And what's funny too, I would say majority of kids, not all because some kids are not motivated by money. No,

money. No, >> but but we have found most. Now, I will say I am a free spirit as a mom. So, I'm

probably not as rigid as I should be.

I'm a little bit more like unload the dishwasher and I'll give it. It's not My kids literally created their own. They

just showed me yesterday their own chart for letting the dog out in the morning.

>> Ameilia is more organized than you are.

>> And then what's so great about it that genuinely Yeah. She like she should

genuinely Yeah. She like she should gosh, she's going to take care of our estate. She's going to be great. And so,

estate. She's going to be great. And so,

but she um but she's our saver. And so,

you actually watch them participate and when they earn money, what they do with it. I'm going to show you this picture.

it. I'm going to show you this picture.

I'll text it to the team and they can put it up if they want later. But, it's

funny. We went to Target literally this weekend before I was in Chicago and they got to bring their money >> um to spend because I cuz I don't do it all the time because they just always want to spend the money they make. So,

I'm always kind of put it off a few weeks. So we went and my oldest it's

weeks. So we went and my oldest it's like she looks through she looks through and she's like I just think I'm going to think I'm going to keep it. I don't see anything I want. And then

>> I like the money more.

>> And then my middle she bought like literally eight things. You see that Caroline? She like couldn't she couldn't

Caroline? She like couldn't she couldn't handle everything. She spent every every

handle everything. She spent every every cent basically.

>> Looks exactly like you at that age.

>> I know. I know. Um but it's great cuz I'm like Yes. And at that age parents like it is it's an amazing thing when they do something for themselves and something big. I mean, they unload the

something big. I mean, they unload the dishwasher, they do, they take out the dog and all of it.

>> If you have done that along and you've taught them to work, give, save, and spend, age appropriately, by the time they get to 16, you can talk about we're

going to turn this over to you. I'm

going to watch over your shoulder and make sure you do it properly, and I'm not going to control you, but I'm going to allow you to make mistakes, but I'm also not going to let you be out of control with your checking account. But

you're going to learn to manage your work, your fun, your spending, and your saving. And you're going to do and and

saving. And you're going to do and and your giving. And you're going to do all

your giving. And you're going to do all of it yourself. And I want you to feel the whole thing more like an adult. So

then the age out comes. Okay? If they've

been doing that three years or two, I think we did it with 15 up to about 18 under your control and direction.

progressively, you should need less and less control because you're teaching them to lay out this how much you got for the month. How much of it's going to go to gas? How much of it's going to go to fund? How much of it's going to go to

to fund? How much of it's going to go to generosity? How much of it's going to go

generosity? How much of it's going to go to this? And you, you know, you need to

to this? And you, you know, you need to lay out a budget for this so it doesn't just escape you like everybody else. All

right? So, if you've done that for three years, then when they left and went to college did the exact same thing, only we didn't even look at it. By then, they knew what to do. This is how much you

get a month for college expenses. and

we're going to pay tuition and we're going to pay books and we're going to pay housing or if you had housing we put that in the amount either one, whatever it was. But this is what you had to work

it was. But this is what you had to work with. We're going to put that in your

with. We're going to put that in your account. If you want more than that

account. If you want more than that while you're at college, get a job cuz that's how much we're going to give you.

And then it's enough for you to you you're going to have a good time and you can have a good life. You're not going to be driving a brand new BMW. You're a

freaking college student that's broke.

And so you're going to be going doing this and you got, you know, college is paid for and even your living expenses is paid for up to a reasonable amount past that. If you want $175 pair of

past that. If you want $175 pair of shoes, you're going to have to get your butt into a job. Okay? And that, you know, cuz I ain't paying for that. And

that's then they all four all three, I'm sorry, there's three of them went through school. I don't I I don't know

through school. I don't I I don't know about that other one, but that other one took off. But the other one, but the

took off. But the other one, but the other three, they went through school in four years. And the number of times I

four years. And the number of times I got a call that said, "Dad, I need money."

money." >> Between all three of them going through four years of college was precisely zero. Now, we did have a time or two

zero. Now, we did have a time or two they came home and said, "Hey, here's the actual reality of this budget. It's

pretty getting pretty tight. Can we

consider doing a raise on it?" And we did do that a time or two, but I've got an emergency. I overspent. I goofed

an emergency. I overspent. I goofed

none. So they aged out and then when they graduated, got married and started their own lives, they already knew how to do life. So we trained them

progressively as they evolved from 3 years old to 23 years old and you know got in more detail with it and gave more and more responsibility. So, if you got

a 16-year-old Camila that's brand new to this whole thing and you dump this on them without >> you teaching them and spending some time talking through these concepts, you're going to have a disaster on your hands.

Don't do that. Don't put $1,000 in a 16-year-old's account with no boundaries.

>> That thing's just you're just going to piss away $1,000 instantaneously and get no lesson out of it. Cuz the goal here is not the money. The goal is to learn

how to do generosity, saving, proper spending, and work. If you teach those goals, they learn those principles.

They'll find their own money as adults.

[Music] [Music] Our

[Music] scripture of the day, Isaiah 29:24, "Those who are confused will gain

understanding, and those who grumble will accept instruction." Tommy Lassorta said, "There are three kinds of people in this world. People who make it happen, people who watch what happened, and people who wonder what happened."

Hey folks, don't just set goals in 2026.

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or click the link in the show notes. Uh,

Ryland is with us in Utah. Hi, Ryland.

How are you?

>> I'm doing well. How are you?

>> Just the same. How can I help?

>> I was um I'm 22 years old and I just graduated college um shortly after I moved back home. Um

but during my time in college, I was able to save around $60,000.

>> Um >> Wow.

>> Dang. How did you do that?

>> I started a clothing business and ran that all through uh well, I started in high school and then ran it all through college while I was studying. Dang,

that's impressive.

>> Good for you, man.

>> Way to go. Like new clothing or what were you doing?

>> It was hoodies. Um, so we Yeah, we had a hoodie brand and then uh marketed it through, you know, all the short form platforms. >> You said had Have you quit it?

>> I haven't quit it yet.

>> Um, but again, like the income's pretty variable and I just started a a new job.

So, >> good. What do you make of your new job?

>> good. What do you make of your new job?

>> You end it on a >> uh 65,000.

>> Good for you, man. 60,000 in the bank.

graduated from college, $65,000 income, and a hoodie side hustle. Way to go, man. You're killing it.

man. You're killing it.

>> Thank you. Thank you. So, my question was, I'm I'm at home. Um, and I have the opportunity for the next year to live at home.

>> Um, >> you don't need to do that. You're a man.

>> And then I also, um, I've kind of getting been getting the itch to move away. Good.

away. Good.

>> Um, and start my own life. Um,

>> scratch it. And so I just kind of wanted to get your advice on if I should continue to >> keep investing money or move. Okay.

>> I figured you'd >> scratch the itch, man.

>> And be free.

>> Listen, here here's the thing. You have

done so many things that are mature beyond your age. You've started and run a successful business. You've saved

$60,000. You graduated from school. You

got a legitimate solid first entry job coming out. What's your degree in, by

coming out. What's your degree in, by the way?

>> I got it in business analytics. So, I'm

a consulting analyst.

>> I'm not shocked. Okay. That's just

wonderful. So, everything in your story is so solid and so mature. And yet what you're going to find is when you buy your own milk and your clothes don't jump up onto the

hanger magically, but without you putting them there, um, your life's going to even get further along in your in your maturation and your development.

And so the Ryland that I'm talking to now will be a substantially different man after he's completely on his own, paying his own bills top to bottom. and he

swings by and tells his mom he loves her occasionally, but he does not live there and she does not buy his food or his clothes or iron his shirts.

>> Yes. Amen. And when you go on dates, you don't have to be like, "Well, uh, guess we got to end this cuz mom and dad are home and I can't bring you home, right?"

>> I'm not kidding. There's something very like Yep. All of it. So,

like Yep. All of it. So,

>> it's good. It's good for you.

>> Yeah. That's that's you're you're man.

You got so many things going on.

>> Done though, Ryland. I bet your parents are so proud.

>> I bet they are. I'm proud of you and I'm sure they are.

>> And uh it's not my point is it's not just a math thing. There's things that are going to happen in the spirit realm and in the psychological realm for you that are um that are that that far

outstrip what little amount of money you could save on rent.

>> So go be go be the best version of you for the next three years, man. I love

it. I'm proud of you. Jake's in Texas.

Hey, Jake. What's up?

>> Hey, what's going on?

>> Better than I deserve. How can we help?

>> Thanks for having me on. Uh, called in to see if it was appropriate or what should I do first before purchasing a

higherend time piece.

>> Cool. What's the watch?

uh looking at brand various brands the typical Rolex Panerai Omega I haven't really narrowed it down but kind of feel guilty >> you're thinking about a budget of what

10 20 R >> uh 10 10ish >> would be right it's my first one and I feel guilty spending that much money on my myself I don't feel guilty spending it on you if you've got it or you do you

have any debt >> we've got uh the house a car one of the cars is green here and then no other debt besides that. Well, I got to fess up. We We owe 700 bucks on a mattress

up. We We owe 700 bucks on a mattress that I could pay off right now.

>> How much you No, you don't need to buy a $10,000 watch. You have a car debt.

$10,000 watch. You have a car debt.

>> Okay.

>> You're broke.

>> What do you make?

>> Uh this year I will eclipse 400.

>> Good God. Commission.

>> What do you do?

>> You know, anywhere. I'm in the mortgage industry.

How long have you been in the mortgage industry?

>> 19 years.

>> Wow.

>> How old are you, Jake?

>> I'm 41.

>> Okay.

>> So, why prayail if you made 400 grand?

Do you have a car debt?

>> I don't know. I could pay it off, too.

>> Good. You have the money in the bank to pay it off?

>> Yeah.

>> How much money have you got in the bank?

>> We are approaching 1.2 in total cash assets. Okay.

assets. Okay.

>> You don't I mean this you're not talking you're not talking about retirement.

>> Uh 6 or 700,000 of that's retirement.

The rest rest is post tax 529s, >> stocks, bonds, cash, just various >> Well, it's ludicrous to borrow money on

a mattress. I can't imagine what you

a mattress. I can't imagine what you were smoking that caused that. And it's

almost as dumb to buy borrow money on a car when you have the money sitting in the bank to write a check and pay for it.

>> So, I mean, you did call the Ramsay show. You know that, right?

show. You know that, right?

>> I'm aware. I'm aware. I knew you were going to beat me up a little bit.

>> All right. So yeah, I would go buy the watch as soon as I pay to celebrate paying off the car and the thing and to celebrate my de newfound debt freedom that I'm never going to do this again

because I make too stinking much money and I have too stinking much money to be buying things with debt. But no, you if you make 400 grand and you're debtree except your home and you have a half a

million dollar in non or 700,000 in nonretirement cash assets laying around, you can do a $10,000 watch. Absolutely.

How much is left on the mortgage, Jake?

>> Uh, we owe 290 and the house is worth 750.

>> Won't you go ahead and pay it off?

>> Get the house paid off.

>> Go ahead and pay it off, too.

>> That scares me. So, hear me out.

>> Why does that scare you?

>> Because he's a 400 every year. It's been

a good year.

>> Unbelievable year.

>> Up and down. You know,

>> it would scare me le I mean, if I had no income, I would rather have no mortgage.

Just the feeling of having the cash.

>> Yeah, it's a feeling and it's a you're in the mortgage business. I'm trying to take you into paying a mortgage off. I

get that. But, you know, but yeah, I if I woke up in your shoes, sir, I would be a 100% debtree and wearing a $10,000 watch by the end of the month.

>> Okay.

>> Car, house, mattress. Oh, God. And

everything. That's where I That's exactly where I would be. And then I'd be on a written game plan. And then you make a crap ton of money and you just >> fasten because here's the other thing.

If you're just a tiny bit afraid about having less cash assets, it'll motivate your butt to do more deals.

>> Yeah.

>> Well, and with that income, which I know you don't get that every year, Jake, but like you can replenish the cash very fast.

>> Yeah. You you built it pretty quick. So,

>> yeah, >> you've done a really really good job.

Um, I I will tell you in general, you don't need to feel guilty when you can spend the money and it's a small percentage of your world. And in

general, that's the answer to your question. Yes. But I gave you a lot of

question. Yes. But I gave you a lot of detail to go around that of all the things I would do. But you did ask and you did call this show. So that that's exactly what I do. You've done very very well. Don't I I I ran into this because

well. Don't I I I ran into this because you're a great salesman and salesman sometimes run into what I did. I tried

to out earn my stupidity for a while.

Just lay it in place a system. Work the

stinking system, man. And then go bank a pile of money and apply it to the system. You're doing so good. That puts

system. You're doing so good. That puts

this hour of the Ramsey Show in the books. We'll be back with you before you

books. We'll be back with you before you know it. In the meantime, remember

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.

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