0:01

Live from

0:11

the headquarters

0:29

of Ramsey Solutions. It's the Ramsey

0:31

show where we help people build

0:34

wealth, do work that

0:37

they love and create

0:39

actual amazing relationships. I'm

0:42

Dave Ramsey, your host. My co-host today

0:44

is Rachel Cruz, number one, best-selling author,

0:47

co-host of smart money happy hour and

0:50

author also a brand new,

0:52

our second best-selling book of hers on

0:54

the kids list. It comes

0:56

out April 16th and it's up for sale right

0:58

now and we

1:01

have been test marketing it among the grandkids

1:03

and it's working. I'm glad for

1:05

where I am. The first one was I'm glad

1:07

for what I have. And so her new

1:10

book coming out soon. So she's going to be helping

1:12

me with your questions today. The phone number is triple

1:14

eight, eight two five, five two

1:16

two five. Micah is

1:18

with us to start off this hour.

1:20

He's in Huntsville. Hey, Micah, welcome to

1:23

the Ramsey show. Hi,

1:25

Dave. Thanks for taking my call. Sure. What's up?

1:28

Okay. So I just started the baby steps

1:31

like last month and I

1:33

have a thousand dollars in the emergency fund already.

1:36

Um, it's getting springtime and my yard

1:38

is getting pretty high. I'm needing a lawnmower and

1:41

I don't currently have the cash to pay for one, but I,

1:43

I mean, I got like $2,000 that I could put

1:45

down on, um, not, not finance, but

1:48

just bought a cheap one or

1:50

I could hire somebody to cut my grass

1:52

for the summer while I saved to buy a

1:55

nicer lawnmower because I live on like 10 acres, which

1:58

I'm not going to keep 10 acres cut, but. Just

2:01

wondering your thoughts on what I should do on that. Okay,

2:04

so how much do you actually keep cut? About

2:07

four or five. Okay, and

2:09

how have you been doing it before now? Well,

2:12

we just built a house last year, and so I really haven't

2:14

had a yard. Oh, okay. After

2:17

all the dozer work was done, it was just kind of

2:19

like a mud hole. Yeah. So

2:21

we're planting grass, though, and it's... I

2:24

keep trying to keep about four or five acres cut. Okay.

2:28

So it's not been cut prior to now, or if it

2:30

was, somebody else did it, right? Correct.

2:32

It was a 10-acre pasture, and it was

2:35

bush-hogged up until the time we

2:37

built. Mm-hmm. Okay. How

2:40

much debt do you have, Micah? Currently,

2:44

we have just the mortgage, and

2:47

then we also have a car

2:49

payment. The car's about

2:51

$28,000, and we're

2:54

on track to pay it off by the end

2:56

of the year. What's your household owner's debt? After

3:00

taxes, it's about $90,000. Okay.

3:03

All right. Well, the

3:05

thing on something like this, the beautiful thing about

3:07

you calling is you're actually thinking about it, because

3:10

at this time last year, if you were facing the same thing,

3:12

you would have gone and financed a $8,000 stupid tractor of some

3:14

kind, right, that

3:18

you couldn't afford. My

3:21

dad listened to y'all while I was growing up, and so

3:23

I may have... The only stupid

3:26

decision I ever made was to buy

3:28

the car and finance it, and the

3:30

only reason I did it was my wife and

3:33

I, we both had thankful vehicles, but we was

3:35

outgrowing the car that we was in with a

3:37

family vehicle. And you used that

3:39

as an excuse to buy something you couldn't afford. Yeah. Okay.

3:43

Yeah, pretty much. Yeah. All

3:45

right. Okay. So it's a

3:47

math thing. If your goal is to pay off

3:50

the car, the more we spend on the lawn

3:53

through service or tractor purchase, either

3:55

one, the shorter...

3:58

I mean, the longer the car... that's going to

4:00

hang around obviously. So if

4:02

you put every thousand you put towards this

4:04

issue of lawn is

4:07

a thousand not going towards reducing the car. So

4:09

obviously what you're asking is what you know what's

4:11

the least way we can do this. I don't

4:13

know I guess get a bid from somebody I want it'll take to

4:15

mow it and then compare that

4:17

to what you could buy a used riding

4:20

lawn mower on Facebook

4:22

Marketplace for. Well I mean

4:24

if I drop 2,500 on the lawn mower I

4:26

could do that next month but it would just

4:28

push the yeah that pushes it out 2,500 but

4:30

are you going what are you going to spend

4:33

to cut the thing all summer if you have

4:35

a somebody else to do it probably more than

4:37

2,500 I would guess right. Yes

4:39

sir. Yeah so I mean the cheapest way to do it

4:41

is to buy a the least priced

4:45

used lawnmower that will get you through the

4:47

summer. Okay. That's

4:50

the cheapest way to do it. I

4:52

had one more question if you don't mind. Sure. We've

4:55

been starting our budget every dollar budget we

4:57

started out this month and

5:00

the miscellaneous category is kind of tough

5:02

for me to figure out

5:04

how much to put in miscellaneous each month just

5:06

because that fluctuates pretty good bit

5:08

when we got we got two kids under two

5:10

I mean they can get sick at the drop of a

5:12

hat or they may go a couple months without getting sick. We

5:16

just there's expenses

5:19

that we don't plan for sometimes

5:21

that occur during the month and we

5:24

just don't want to kill our budget by

5:26

not playing it. Yeah I would probably up it

5:28

at the beginning and then once you guys once

5:30

you guys have done this like three or four

5:32

months there's usually a consistent or how it worked

5:34

in our house that consistent thing

5:36

that keeps coming every month that we throw in the

5:38

miscellaneous that we end up just making a budget line

5:40

item for. Yeah like if kids are going

5:42

to the doctor every three months or two months

5:45

then that's a budget line item. Yes

5:47

sir. I mean and if you got two under two

5:50

it's like a rule you have to pay the pediatrician's

5:52

divorce payment I mean you know

5:55

it's like you have to go over there it's federal law

5:57

right and so the kids are going to do

5:59

that when they're a little bit. cities, they do that. They

6:01

are, yeah. And so you're going to have some

6:03

trouble. You know, so it's really not a surprise.

6:06

It really wouldn't shock you. And

6:08

to Rachel's point, if it reoccurs, then you just make a

6:10

line item for it and put

6:12

an amount in that, say, kids' medical, okay,

6:15

in every dollar, and then you lower whatever you

6:17

put in there, you lower your miscellaneous by that.

6:19

Yeah. And I would say to

6:21

Mike and to anyone listening that is budgeting for the

6:24

first time, that miscellaneous category, I would make it higher

6:26

than what you think you need because there's going to

6:28

be expenses in your life that you don't even realize

6:30

because you haven't been budgeting. Right. And

6:32

so you're going to go through a few months of it to be able

6:34

to say, oh my gosh, okay, that's the thing that keeps coming up. Or

6:37

oh, we got this way more under control,

6:39

and so we can actually lower the miscellaneous.

6:41

So I would be more conservative, more

6:45

liberal, conservative, higher amount on the

6:47

miscellaneous category for now, Micah, especially

6:49

if it's not political, more liberal. I

6:51

know. I was like, it's more like

6:53

here. You're not a liberal.

6:55

Freedom. You

6:57

never know. You never know. Okay.

7:00

Thank you. Yeah. Yeah.

7:03

So how much is a lawnmower though, for

7:05

real? No, I mean, you can buy a

7:07

push mower right now on a used push

7:09

mower all day long on Facebook marketplace for

7:11

50 bucks, but five acres, that's like 73

7:13

days you'll be cutting out here. How

7:16

much is like a zero turn? I don't know. Do

7:19

you like that phrase? Look at that. So

7:21

probably a couple of grand. Five? He's

7:24

probably, you can pick it up for two, a used one. But

7:26

it's not one you want. It's one to

7:28

get the grass cut with. So it

7:31

won't make bread and it

7:33

won't catch fish while you're mowing. And

7:36

some of them will. So some of them will do it

7:38

with GPS. We're just, we're trying

7:40

to basically cut

7:42

the grass. That's all. And

7:45

I wonder in Huntsville, what I was thinking

7:47

is like some kid this summer is going to, is going

7:49

to be doing this for their job. I know,

7:51

but 25, 2000 bucks for the whole summer for

7:53

five acres. I doubt it. Yeah.

7:55

I doubt it. I might be

7:57

wrong. It seems like a lot. I don't know.

8:00

That's the analysis. I want to go back to

8:02

the other thing because when you first start budgeting

8:04

liberal wheat No, no, no, we're not we're not

8:06

worried about that because you'll get just get thrown

8:08

out of the family but the We're

8:12

not to fire you but But

8:17

anyway, I'm here for all people. Yes,

8:19

we love all people and we are

8:21

all people I'm here we love them,

8:23

but that doesn't mean we want to

8:25

be them. Okay, so the Anyway,

8:28

anyway, I'm a conspiracy theorist. I'm just

8:30

I'll just own all on that label that

8:33

that one you can have Yeah, that one's

8:35

legal Okay so the miscellaneous

8:37

it takes 90 days of doing

8:39

your budget for your budget to start to work and part

8:41

of it is the things you don't expect

8:43

to come when you first start doing this like

8:45

kids medical or Activity fees

8:48

at school or so on so give yourself some

8:50

grace to lean into that over the first 90

8:52

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author. My daughter is my co-host

9:43

today melodies in Atlanta. Hi melody.

9:45

How are you? Better

9:49

than we deserve how can we help? So

9:52

we are within two weeks in theory

9:55

of having our firstborn and trying

9:57

to What

10:00

are you having? I'm so excited, little boy. All

10:03

right, very fun. Congratulations.

10:06

Yeah, thank you. Just

10:08

trying to figure out best

10:10

options for investments moving forward

10:14

past just like

10:16

work 401ks and what we can kind of

10:18

do with a little extra to have

10:22

him sign up. Okay, is

10:24

this for your son you're thinking for specifically

10:26

or you guys as a family or like

10:28

as a couple? Okay, as a family. Okay,

10:30

are you guys? So after work when the time

10:32

comes. Yes, yes, yes, yes. Are

10:36

you guys working your way out of debt or are you out now?

10:39

No, we are out of debt. We finished paying

10:41

off our house two weeks ago. Oh, way

10:43

to go. Oh my gosh. You're 100%

10:45

debt free. Yes, sir. Way

10:47

to go. Both cards are

10:50

paid for. One was the one I had

10:53

when we got married, the other one we paid cash for a little

10:55

over about two years ago, I guess. Gosh, that's

10:57

so impressive. How much do you guys make a year? It

11:02

fluctuates. My husband works very, very

11:04

hard. It

11:07

ranges. He has a salary but

11:09

then he has like on the road per diem and

11:11

then he has like premium

11:13

time he can make as well. So

11:16

how much do you make a year? Salary

11:20

is just a little over 100 and then his

11:24

take home last year was a little over two.

11:27

Okay. Excellent. Way to go. Awesome.

11:31

Yeah, I mean I would stick with maxing

11:33

out what you can and

11:36

maxing out where you guys will be beyond

11:38

the Roth. I think it's. You

11:41

can do a Roth. Back door. Yeah, you can do a Roth.

11:43

I mean if he's under 200 AGI, he will be. So

11:47

probably somewhere around there, you can do a

11:49

backdoor or regular. You need to be maxing

11:51

out both Roths. You need to be maxing out

11:54

401ks hopefully in a Roth with a match

11:57

and you max out your 529 for the kiddo. You

12:00

don't have to max it out, but put five,

12:03

six or eight, ten grand in there a year.

12:06

And if you do that, he's going to go to college anywhere

12:08

he wants to go. If you do

12:10

that, he's going to go to college anywhere he wants to go. And

12:13

if you put all you can put in

12:15

401ks and Roths, how old are you guys?

12:19

He's 32 and 30. Okay, that alone at

12:21

65 will have you between five

12:23

and ten million dollars. Just doing that. Okay,

12:26

you said both Roths. Yeah. So

12:29

you can have one spousal even though you

12:31

don't work. You can open one melody under

12:33

your name. Right,

12:36

so we have 401k with his work and

12:38

then that's what I do. Is it the

12:40

Roth IRA, like the personal one? Yes. I've

12:43

been trying to do some research on that, but I got a little

12:45

confused. Yes, you can do a Roth IRA each, 6,000, and he can

12:47

max out his 401k. If

12:53

he has a Roth option on the 401k,

12:55

it should be doing that. Okay.

12:58

Perfect. Alright, write that down. So

13:00

what you need to do is

13:02

jump on ramseasolutions.com and click on

13:04

SmartVestor and find a SmartVestor

13:06

Pro in your area. These

13:09

are the mutual fund brokers that we

13:11

recommend and you can find one that they have

13:13

the heart of a teacher or we don't put

13:15

them on there. So they're going to sit down and

13:17

teach you what is best and what these numbers will

13:19

turn into. So you're going to be

13:21

very, very wealthy if you just do that. Now once

13:23

you've maxed out all of that stuff, you're at what

13:25

we call baby step seven. No debt at all. There's

13:28

nothing left to do but become extremely wealthy

13:30

and be wildly generous. That's

13:32

it. That's all you've got left to do.

13:34

So, and enjoy some money in the process. So

13:40

beyond that, then you start

13:42

talking about, okay, am I going to do more

13:44

mutual fund investing or am I going to pay

13:46

cash for some rental real estate if you want

13:48

to be in that world, that

13:50

kind of thing. Those are the two things

13:53

I have done beyond maxing out everything. But your

13:55

first step is get the 529 started

13:57

for kiddo once he's got a social security number.

14:00

he's arrived, then you can do that

14:02

and do that in a

14:05

month or two here. And you guys max out

14:07

the 401 with the match and max

14:09

out both Ross. That's a, that's a really

14:11

good start. And again, if

14:13

that's all you ever do for the next

14:15

30 years, it's going to be millions and millions and

14:17

millions of dollars. So you're going to

14:20

be in great shape, but why not

14:22

even do more, you know, and why not enjoy more

14:24

and why not be even more generous? So sit

14:26

down with a smart visitor pro and they'll help you

14:28

do all that. Yeah. And for

14:30

kids, cause I, I've talked to a lot

14:33

of families who are like, okay,

14:35

if we max everything out, what investment options

14:37

besides just education can I do for

14:39

my kids? You don't. And well,

14:42

they're up my accounts. There's, I mean,

14:44

there's other options, but I wouldn't, I

14:46

would just build it in your build wealth in your name and

14:49

then leave it to them as a part of the estate. When

14:52

they, when the parent dies though, that's,

14:54

that's well, or you could, you could, if you want to

14:56

hand them some money, yeah, that's what I was saying. You

14:58

could, you could handle money at death or you could handle

15:00

money early, but there's no point in putting it in their

15:02

name. Yeah. There's no, you know,

15:05

because you don't have it. You

15:07

lose control and you lose options. So

15:10

when you build wealth, you're building wealth for your

15:12

whole family. Your family's going to get the

15:14

use of the wealth. So there's no point in

15:16

putting in the kid's name. Cause I mean, the kid

15:18

may decide that they're, you know,

15:20

they may have all kinds of problems or something, you know,

15:22

they can get to, yeah. They own

15:24

it. Not my, what 18 though.

15:28

21 on a hut. But yeah, uniform

15:30

transfer to minors act is when you

15:32

open a number count in the child's

15:34

name, UTMA and put your name on

15:36

it as the custodian, but you do

15:38

not have control of it. So he's

15:40

doing heroin at 21. He's

15:42

got a million dollars, not this kid, but another

15:44

kid, the kid's doing a million. He's got a

15:47

million dollars. You just killed your kid. I know

15:49

you're going to access that and they're going to

15:51

overdose on heroin. I mean, so you have to

15:53

control it. No, I mean, this is so dramatic.

15:55

No, but this is what happens. I mean, I've

15:57

been doing this 30 years. I know,

15:59

but I'm just saying. though for

16:01

family. Because say you're

16:03

like okay, think about Melody, they freaking have

16:05

everything paid off. I know, I'm going down

16:07

the road so follow me. I'll try. Everything

16:11

paid off. They have a baby

16:13

born in a month. So in 18

16:15

years, say Melody and her husband

16:18

are like, yeah, we'll help with the down payment

16:20

on the home because he's not doing heroin and

16:22

he's awesome and he has a job and he's

16:24

paying taxes. He's responsible. He's a great kid.

16:26

This one's going to turn out. And it's

16:29

like great. We have Melody and husband so

16:31

much money and we want to help our

16:33

kids continue that legacy. So

16:35

we want to say, hey, here's a down

16:37

payment for a home or here's something

16:39

that is not college related. Isn't there

16:41

a gift tax? Doesn't that get into

16:44

taxes? You can avoid gift tax with Uniform

16:46

Transfer to Minors Act or ... Which is

16:48

a ... No. What? I'm

16:50

sorry. Unified estate tax. Okay.

16:52

I'm sorry. I picked up

16:54

the wrong uni. Unified estate tax credit and

16:56

you can avoid it and move money anytime

16:58

you need to. And of course, the other

17:00

thing is this. You can ... Okay. Gift

17:03

tax this year is what? I don't

17:05

know, 15,000 bucks or whatever. Something like that.

17:08

And so let's say that if

17:11

you want to give your grown kids some money, I need

17:13

to look ... James, find the gift tax and tell me

17:15

what it is. But the ... Because I can't remember nothing.

17:17

Oh, it's right here. It's on my notebook. Oh, hello. I got

17:19

this cheat sheet I should use. All

17:22

right. Well, they change it. They up it for inflation

17:24

every year. 17,000. Okay. So

17:28

if a married couple has a

17:30

grown married child in their 20s,

17:33

there's four players involved. Mom

17:36

can give daughter-in-law and

17:38

son 17 each,

17:40

two checks. Okay. Dad can

17:43

give daughter-in-law and son 17

17:45

each in two checks. That's

17:47

60,000. Yeah. Yeah. Okay. And

17:51

so that's $64,000 or $68,000. Okay.

17:56

In one year. If you happen to do

17:58

it at Christmas, you do it again. three

18:00

weeks later and you got a hundred

18:02

twenty eight thousand. Okay, okay. So you know

18:05

you can get to just about anywhere you want to

18:07

get to just using that without

18:09

even using the unified estate tax credit

18:11

which means you're using up some of

18:14

your estate exemptions

18:16

in the federal by using it against gift

18:18

tax so you can get your money to

18:20

your kids while you're alive. Because that's part

18:22

of all of this you guys is changing your

18:24

family tree and we talk about that. Yes, that

18:26

is that is knowledge that's character like there's so

18:28

much there but also I think

18:30

about the reality of so many people listening now

18:32

that are so young and if they start doing

18:34

this they're gonna look up so much money in

18:37

20 years and part of changing that family tree is what

18:39

does this look like you know all three

18:42

of you turned out so

18:44

far okay and so so far

18:46

right and so you can use

18:49

some of that estate. None of

18:51

you had none of you had

18:53

big accounts in your names yeah

18:55

except that your college funds were

18:57

because there was not a 529 back then. And

19:00

we handed your atma to you that was your

19:02

old college fund because we'd cash flowed the college

19:05

and you guys use that for your first houses

19:07

and stuff and that got you going on your

19:09

wealth stuff but you didn't have

19:11

a million dollars in your name when you

19:13

graduate from college. No. But I did

19:15

I had a million dollars in my name

19:17

and then I could do stuff with it if I wanted to.

19:20

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Deloney today to get 10% off

20:25

your first month. That's BetterHelp. H-E-L-P dot

20:30

com slash Deloney. So

20:34

Rachel Cruz, my co-host today and daughter,

20:36

has a brand new book out. Comes

20:39

out April 16th. We're in presale right

20:41

now. I'm glad for Where I Am,

20:43

a new children's book. It's

20:46

all about gratitude. The first one was about

20:48

contentment. If you will teach

20:50

your kiddos gratitude and contentment, you

20:53

set them on a real

20:55

wonderful psychological path, the

20:57

health of their psychology, the health of their emotions,

21:00

a wonderful spiritual path, and

21:03

those two things will lead them to an ability to

21:05

build wealth. Because people who

21:07

are grateful and people who are

21:09

content have a very high tendency

21:11

to win with money and life

21:13

for that matter. So that's what

21:15

this is all about. It's

21:17

not just a little kids book. There's a game here

21:19

that we're playing that's a long ball. So

21:21

this comes out. Now you're going to be doing signings

21:23

in several cities. Are we announcing that yet? I am.

21:26

I don't have all the details but signings

21:30

will be in LA, Dallas, Phoenix, and Atlanta.

21:32

So story time. Yeah, so I'm going to

21:34

do a story time. Yeah, local Barnes and

21:36

Nobles. We'll get you the exact addresses and

21:38

times. So probably around one o'clock signings

21:41

and those cities coming up in two weeks. So.

21:43

And Ken Coleman's new book

21:45

that comes from the Get Clear Assessment of

21:48

his, almost a hundred thousand folks have taken

21:50

the Get Clear Assessment. You can get it

21:52

on our website. But we're

21:54

putting a book companion piece with it called

21:56

Find the Work You're Wired to Do that

21:59

explains the result of and

22:01

includes the get clear assessment.

22:03

So you'll get a code to take the

22:05

assessment and then this will walk you through

22:07

what you're learning about yourself to

22:09

get plugged into the proper career that's not

22:11

only fulfilling, but it turns out

22:13

when you love what you do and when you're good

22:16

at it and you're fulfilling and you're fulfilled at it,

22:18

you will make the most you've ever made in your

22:20

life, which is part of the goal here. And

22:23

so very few people maximize their income doing

22:25

something they hate and that

22:27

they suck at. So very few.

22:29

They're just highly unusual. But

22:33

that book is also in pre-sale. It comes out

22:35

technically and we'll ship it to you first week

22:37

of May. And so all of those

22:39

are on sale and that's what's happening around here right

22:42

now. Alright Rachel

22:45

is with us in Salt Lake City. Hi

22:47

Rachel. Welcome to the Ramsey Show. Hi. Hi

22:50

there. How are you? Good. How

22:54

can we help? Yes, sorry. I'm extremely

22:56

nervous to talk to you. I've

22:58

been following you for the last four months

23:00

really heavily after having a sister non-stop

23:04

in my year about Dave Ramsey. Listen, anyone with an

23:06

accent as cool as yours could not be nervous to

23:08

talk to him. So is

23:10

it British or Australian? What am I missing?

23:13

It's British. It is British. You're right.

23:16

So where are you from in

23:18

the UK? From Paul, from Dorset. Oh wow.

23:21

Originally. But we're actually emigrated two

23:23

years ago and I'm

23:25

going to try and make this, it seems like a mini

23:27

question but it's complicated so I'm going to try and not

23:29

ramble. We emigrated two years ago

23:31

because we couldn't do in the UK what we wanted

23:33

to do here which was buy land build. My husband

23:35

has been in construction for 15 years and

23:38

it's really good at it. We raised all

23:40

the capital, we came here and within a

23:42

month of moving care I was diagnosed with

23:44

stage 3 cancer. Oh my. And

23:47

all of our money went to keeping

23:49

me alive plus about $36,000 worth of

23:51

credit card debt. I'm

23:55

calling that a good investment. But

24:00

it's still there. So we're not massively

24:02

in debt. We've just got $36,000 of credit card

24:06

debt. But long story short, my

24:08

husband, on top of that, his

24:10

dad pushed away very suddenly, was

24:12

healthy and passed very suddenly last

24:14

year. And we're about

24:16

to receive roughly about what we've spent

24:18

on keeping me alive back

24:21

in inheritance from his

24:23

father's estate. And

24:26

we are in lock. My husband is sitting next

24:28

to me. He didn't want to be on speed

24:30

because he has an accent too and he didn't

24:32

think he'd hear him properly. But we're just in

24:34

a place where we're following his steps and

24:36

we know we should pay the debt off.

24:39

But we're in disagreement with what that money

24:41

should do because he knows he can take

24:43

that and he can change our lives within

24:46

eight to ten months by investing

24:48

what his dad's inheritance will bring

24:50

and put us straight into out

24:52

clear with six months in the

24:54

bank saving out of debt. How

24:57

much money is this? It's

24:59

$120,000 but lands only about $28,000 here and he

25:01

can knock it up real quick. And we

25:05

can sell it for $350,000. So the numbers work.

25:07

It's not a pipe dream. We've done the numbers.

25:09

We came out with a business plan. We do

25:11

know what we're doing. So

25:14

you're going to build something for $128,000 that you can sell

25:17

for $350,000? That's

25:22

correct. That's

25:26

correct. Obviously,

25:28

less fees. There's going to be fees. But then

25:31

the plan is to reinvest it and then go

25:33

to a piece of land that he can do

25:35

four on and to grow from that. That was what

25:37

we came here to do. Normal

25:39

builder margins in the United States of

25:41

America are nowhere near that. These

25:44

are numbers. These are numbers I've never

25:46

seen before and I do a lot of real estate.

25:50

I understand. We have run the numbers. We've

25:52

got an estate agent. We've looked at the

25:54

market. I mean, $350,000 is on the higher

25:57

side. The worst case scenario is going to

25:59

be three. 300 and

26:01

my husband is doing the work himself.

26:03

So he's not having to, obviously, he's

26:05

been in construction for

26:07

15 years, so

26:09

he knows how to do ground up. He does

26:11

everything, misqualified, just in about

26:14

everything you can imagine. So we're

26:16

doing this, we've not got

26:19

a whole lot of labor costs because my husband

26:21

is doing this while I'm working and keeping

26:23

our bills paid through my job. A

26:26

guy building a house completely by

26:28

himself. He'll have help, but

26:30

it's just not going to cost a lot because of

26:32

their labor is because he knows what he's doing. Rachel,

26:34

do you guys have any other savings? Do you guys

26:36

have any other savings? We

26:38

don't, like I said, well, we've got the

26:40

thousands, we've got the emergency fund, we started

26:42

our debt snowball as well. So we're into

26:44

our debt snowball. But like

26:47

I said, it's reraging back and forth because

26:49

I want to clear the debt and then

26:51

wait and he's saying it's going to take,

26:53

he worries if I relapse or anything else

26:56

goes wrong, we'll never get this opportunity again.

26:58

He's worried that if we don't

27:00

do this now, then we won't do it. So

27:02

here's what makes me nervous about it, Rachel. Because I mean, I

27:04

trust you guys. You run the numbers, you know what you're doing.

27:07

It's not a question of that. But

27:10

whenever you make a decision that is so

27:12

single focused and the way the language you're

27:14

using or the language that he's using that

27:16

you're telling us, it is this

27:18

urgency. It's this, if I don't do this now,

27:20

it's never going to happen again. And you can

27:23

plug in that, Rachel, that scenario, that language with

27:25

kids going to college. I got accepted to college.

27:27

If I don't go this fall,

27:29

then this, this, and this isn't going to

27:31

happen. Or someone buying a house

27:33

and they'll tell us, it's the only house. This is the

27:35

only house we can do. It's our only option. And when

27:38

you start to do that, Rachel, you start to lose

27:40

the ability to make decisions because you

27:42

don't have options. And so what

27:45

I would say is I would slow down. I

27:47

really believe you guys know what you're

27:49

doing. He's very talented. He's really good at what

27:51

he does. But that's the

27:53

business side of his world.

27:56

But what we're talking about here is

27:58

your personal home and your personal life. debt and

28:00

where you guys are and this inheritance

28:02

is coming in. And so I would

28:05

clear it because the urgency of the other

28:07

option as well, usually

28:10

people don't make great decisions when you're in that position.

28:13

Does that make sense? Yeah, this is a fatalistic language.

28:17

What do you make? We

28:19

make about 110 between a few years. Okay.

28:23

So why can you not pay off $36,000 in 12 months? Because

28:28

we're paying... You're going to

28:30

hate me, Dave. Don't

28:33

make me tell you. We

28:35

have our kids in private. We have two children in Christian

28:38

private school and that takes

28:41

quite a lot. We tried public school

28:43

and my daughter has autism and my

28:45

son has gastro-precious and the state just

28:48

wouldn't work with us around

28:50

that. So we moved them into private

28:52

school. We do get... What do you

28:54

do for a living? Amazing. I'm

28:56

a piano and voice teacher and my

28:58

husband owns a construction company. He's

29:01

doing construction now. Yes,

29:03

he is. So he picks

29:06

up projects and wants to be working for himself.

29:08

This is what we came to do. Yeah, Rachel,

29:10

I had to go back and... Listen, as mom,

29:12

all the health stuff that you guys have been

29:14

through and then as you just explained with your

29:17

two kids, I'm like, I would not want risk.

29:19

I would want everything paid and I want a pile

29:21

of money in the bank because the amount of situations

29:23

that can come up for you guys is a

29:26

lot. So the answer to the question is

29:28

no. That's

29:30

what I think. I would not build the house. That's what I said.

29:32

I would not build the house. I would pay off the debt and

29:35

I would go... If

29:37

I'm your husband, I'm going to start doing

29:40

renovations and rehabs for other people, self-employed because

29:42

he has the ability to do this. He can make a lot

29:44

more money than he's making now and build

29:47

that business and build some cash base back

29:49

up and then go do this other deal.

29:53

I got to tell you, I've been doing this a long

29:55

time and I know a lot about building. I'm building a

29:57

house right now and the numbers you're giving

29:59

me. They don't work. I

30:01

know you like them and you believe in them, but

30:04

that's the other problem. It

30:09

continues to amaze me how identity

30:11

thieves keep finding ways to use

30:13

our own identities against us. Not

30:15

only do they commit crimes related

30:17

to financial fraud, medical ID theft,

30:20

and insurance benefit fraud, but now

30:22

we have to deal with home

30:24

title fraud. Theives are using your

30:26

own personal info to take ownership

30:28

of your home so they can

30:31

take out loans and you end

30:33

up with a pile of debt

30:35

and foreclosure notices. Over 4,000 data

30:38

breaches happened in 2018 exposing 3.6

30:44

billion records. So thieves

30:46

have plenty of identities to use

30:48

and there's a one in five

30:50

chance it will be yours. That's

30:52

why Zander Insurance is the only

30:54

program I use and recommend. Their

30:56

plan covers all types of identity

30:58

theft and it takes over

31:00

all the work if you become a victim.

31:03

Visit zander.com or call 800-356-4282.

31:11

A couple of circle backs before I get 9,000 comments

31:14

about how dumb I am with taxes, because

31:18

I am and that would be accurate, but

31:20

there's no reason to make it worse. So

31:23

the gift tax is not 17,000. Even my cheat

31:25

sheet that was in front of me because my

31:27

brain doesn't remember all these things was wrong and

31:29

so it's actually 18,024. So an individual can give

31:34

an individual 18,000 without

31:36

any gift tax or income tax. If

31:39

an individual gives an individual more

31:41

than that or if

31:44

you're not a non-profit, then

31:46

you're going to get gift tax.

31:49

But I can give an

31:52

individual 18,000 and then my wife can

31:54

give an individual 18,000 and so

31:56

that gets them 36,000. And

31:59

so with grown children that are married,

32:01

you can do it four times. You

32:03

know, father to daughter, father to son-in-law,

32:06

daughter or mom to daughter, mom to

32:08

son-in-law, right? And so that creates

32:10

four checks of 18,000 so that would be $72,000 you can

32:12

move. So sorry

32:15

guys, just don't need to get your hate later.

32:17

You hate me for a lot of things that

32:20

I don't even do, that one I actually did. So

32:23

the other thing is this, I want to

32:25

continue our conversation just a little bit, just

32:28

in general. So the last caller,

32:30

Rachel you brought up the

32:33

most important part on that call which is

32:36

that when you narrow it down

32:38

to I've got just one shot

32:40

and if I miss that one

32:42

shot on any decision

32:44

that you're making, you are

32:47

now rationalizing the decision because

32:49

it is not a fact

32:52

that you only have one shot. So there's,

32:54

if I don't get this house, I'm never going

32:56

to get a house. If I don't buy this

32:58

car, I'm never going to get a car. God

33:00

only put one person on the entire planet

33:02

for me to marry and if I

33:05

miss that one, I'm going to not

33:07

be married. Bull crap, okay? Just bad

33:10

thinking skills. So any time that

33:12

you allow anxiety, the stress and

33:15

strain of life, the tragedies of

33:17

life, the fact you've been fighting

33:19

cancer or anything else to

33:22

narrow you down to one

33:24

singular decision, Rachel's point, it

33:26

was that you're going to make a bad decision. Yeah, yeah,

33:29

yeah and we find that a lot with people because

33:31

you know, money is

33:33

a tool you know in your life that you're

33:35

using and when life is hard

33:38

or life feels out of control or life feels like

33:40

I'm watching this one thing, then you use that tool

33:42

money to go and try

33:44

to get the control back. And try to get that control back,

33:46

yeah and so there is a there is a

33:48

patience to slow down and

33:51

to say let me gather some more

33:53

options. Option A, B and C and

33:55

out of that then you can start

33:58

making okay. Maybe it maybe The

34:00

answer still is A for whatever your situation

34:02

is, but at least you've researched and you've

34:04

thought and you've taken time to look at

34:06

B and C because,

34:08

man, we just � I don't know. We talk to people all the time

34:10

and it was like we're in a house and we shouldn't

34:12

have bought it, but we just thought it was a really good deal.

34:14

We didn't think we could find another deal like this. We got in

34:16

it and it turns out it wasn't. You

34:18

get in this mindset and it's just really

34:21

dangerous. A

34:23

couple of bad decisions

34:27

are one of the primary things that

34:30

deal your wealth. Decision

34:32

making principles are

34:34

important. Decision making principle number

34:37

one, if you think there's only

34:39

one or two things to do, you haven't

34:41

spent enough time gathering up options. Options

34:43

are power. Options

34:46

are informative. Options

34:49

cause you to really think clearly.

34:54

The people that call in, they go, �Well, we've

34:56

got mold in our house and

34:59

the only other house that we

35:01

can live in is $4,000 a month and we make $5,000.�

35:03

Do we buy a house and go

35:08

bankrupt or do we stay in the moldy house and kill

35:10

our children? You

35:12

have two stupid but options and I'm supposed

35:15

to choose between these two. See

35:17

none of the above, keep looking. You haven't

35:19

figured it out yet. That's

35:21

the kind of thing we're talking about. We get that call

35:23

actually. That's a call that's come in

35:25

more than once over the years. You

35:28

justify the crap out of doing something you don't

35:31

need to do. Fear will do

35:33

that too. Did you hear that in your example

35:35

of mold in the house, which is very real,

35:37

but also her husband in the last call, he

35:39

said, �What if you relapse?� He said that. There's

35:42

a level of fear there. So

35:44

facts, John Maloney says when you're facing trauma,

35:47

facts are your friends and

35:49

facts are more and more and more obvious. That's

35:52

a plural fact. Number two, decision making principle. Slow

35:55

down to the extent of the

35:57

size of the decision. Spending

36:00

all your calories or nothing. Decisions:

36:02

Some people spend more time deciding

36:05

which gum to purchase in the

36:07

gas station than they do which

36:09

car to purchase. You sprint your

36:12

calories on the wrong thing. The

36:14

bigger the decision to more time.

36:18

And. Then the enough or access I'm

36:20

frozen within decisions didn't teens or eclipse

36:22

at but I but I don't

36:24

post a porsche you know it's

36:26

like this is the backwards yeah right

36:29

and also the suit the that

36:31

the size of the decision means

36:33

you need to slow down and have

36:35

more and more options are at and

36:37

then the links of the end.

36:40

Patients. Their.

36:42

Your pulse rate needs to drop.

36:46

If. You got house fever? Go take a cold

36:48

shower, Your. Pulse rate nice A drop

36:50

your bow to do something stupid because you can

36:52

just hear it in here. The anxiety in the

36:54

in people's voices when they call in here with

36:56

these things and not just her she was she's

36:59

a sweet girl. she was nervous as part of

37:01

do Not Now Not regard that as a high

37:03

level of the most and others are about one

37:05

more thing on her call because I really need

37:07

to get this out here for her to here

37:09

and her husband to hear but also everybody else.

37:12

Okay, the option of taking your hundred and twenty

37:14

eight thousand and putting it into us a smartass

37:16

by building house from the ground up on peace

37:18

will stay. And flipping it immediately.

37:20

A Spec House of speculation.

37:22

Builder spec house is one

37:24

option. But. Let me tell you. I

37:27

grew up in the construction business. And

37:29

Hammer State licensed since I was eighteen and

37:32

I'm older than dirt. So.

37:34

I've been doing the stuff a

37:36

long, long time. I. Can

37:38

tell you. For. Sure, That.

37:41

If you have builder skills. You

37:43

show up. On. Time.

37:46

You. Finish. The. Project.

37:49

Of. Renovation. Or. New

37:52

construction. On. Time. And

37:55

you build a budget and stick

37:57

to the budget. You

37:59

aren't. unusual animal

38:02

you are very very marketable

38:04

because most people in the construction

38:06

business can't even show up much

38:10

less finish and

38:12

their numbers are so screwed that

38:15

they piss everybody off they're dealing with because

38:18

they don't show up on time they

38:20

miss their numbers and they don't finish on

38:22

time and so they never

38:24

get repeat business because they make everybody

38:26

mad that they're dealing with if you'll

38:28

just show up on time you

38:31

can own the world and

38:33

finish on time and hit your numbers you can

38:36

own the world so that young man if he

38:38

can do the deal he thinks he can do

38:41

he can do renovations and make three hundred thousand dollars

38:43

a year he

38:45

can grow a renovation and new and

38:47

custom housing business build decks put

38:50

porches on the back whatever it is he can

38:52

make a bazillion dollars if he has the skill

38:54

set that she says he has and i don't

38:56

doubt it and if he can

38:58

actually pull off projects show

39:01

up on time take a bath

39:05

you know and finish the project on

39:07

time and hit your numbers you

39:09

got no competition because nobody else in

39:12

that space hardly does it very

39:14

few do and the ones that do end up

39:16

being custom home builders for the rich yeah

39:19

because they're excellent at

39:21

what they do exactly and so you

39:23

got to you got so much potential

39:25

out there if you

39:28

do that that you i

39:30

think you could take that you can take hundred

39:32

twenty eight thousand dollars minus thirty six thousand dollars

39:34

for the credit card debt use

39:36

that to do some renovations parlay

39:38

your way into three hundred thousand in cash and

39:40

go do you a couple of these specs later

39:43

if your numbers are right and i'm wrong because i

39:45

think your numbers are unrealistic but if i'm wrong about

39:47

that which i'm happy

39:49

to be wrong i hope i hope i'm wrong i

39:51

hope you make a hundred i hope you make a

39:53

hundred percent margin on a construction project but it's very

39:56

unusual that doesn't happen okay if

39:59

you can do that then you can do what

40:02

I'm talking about and

40:05

that's your third option and

40:34

then let's focus on everything else for

40:41

a wife that's been sick and kids that are sick the

40:44

shame idea that I spent the money our family

40:46

was going to get rich on to

40:49

save me from cancer and

40:51

I'm ashamed no

40:54

no no no no no

40:57

your family's going to be fine even

40:59

though you had cancer this

41:02

is the Ramsey show live

41:06

from the headquarters of Ramsey Solutions

41:08

it's the Ramsey show where we

41:10

help people build wealth

41:13

do work that they love and

41:15

create actual amazing relationships Rachel

41:17

Cruz Ramsey personality number one best-selling

41:20

author host of the Rachel Cruz

41:22

show and co-host of Smart Money Happy Hour two

41:24

of the Ramsey Network's more popular podcasts

41:26

and YouTube shows also

41:29

my daughter she's my co-host today open phones

41:31

at 888-825-5225 Tara

41:35

is with us in Louisville Kentucky Hi

41:38

Tara welcome to the Ramsey show thank

41:42

you you raise up my question there

41:45

you are you cut out a little bit oh I'm

41:47

sorry I'm staying as close to a window as

41:49

I can you're great are

41:51

you ready for the question? we'll try okay

41:54

we're looking for advice on what

41:56

we can do for financing for flipping

41:58

houses We cannot my used

42:01

our Home Equity line of credit. for

42:03

the purchasing and remodeling am but of course

42:05

that payment gets a little high. Sword is

42:07

looking for something as some ideas of what

42:09

to do. Oh

42:12

come. On. I've

42:15

probably done fifteen hundred or two thousand

42:17

swoops in my life. When

42:20

I used to do for a living before I went

42:22

broke. Because. Or

42:24

borrowed money. Doing. Flips. So.

42:28

I'm. For.

42:30

Thirty five years of top people not to

42:32

borrow money. On

42:34

as a primary way to lower

42:36

risk and create wealth. I.

42:39

Don't borrow money. And. So I'm

42:41

not gonna be able to help you borrow money.

42:45

With the success of. Remember to you

42:47

in I mean do just straight out advised

42:49

if cash for. Yeah thing and out.

42:51

Yes! Okay, And

42:53

here's it. There's a lot of reasons

42:55

why. I'm going on

42:58

when you use. Financing.

43:02

To. Purchase a house that you're going

43:04

to flip. You're not as careful.

43:07

As when you use money out of your bank

43:09

account. To. Purchase a house

43:11

to flip when you are

43:13

using financing to do the

43:15

renovation. On the flip. You're.

43:18

Not as careful as when you're pulling

43:20

your stinking hard earned money out of

43:22

your checking account to do the renovation

43:25

and you end up spending more on

43:27

the purchase, more on the renovation, The

43:29

sure margins are lower. Oh, and then

43:31

when you get ready to sell, it's

43:33

an interest rates tic up from three

43:36

to seven and the market slows down

43:38

dramatically. In you're sitting on this thing

43:40

with payments, are you become what's called

43:42

a motivated seller and you give up

43:44

the rest of your margin. So.

43:48

You're margins are destroyed. When.

43:50

You do flips. For. Those

43:52

three reasons. with financing

43:54

so i would go a

43:56

lot slower and a lot

43:59

smaller by something seriously

44:01

junky and tiny

44:03

and flip it with cash out of

44:05

your pocket. Use every bit of the

44:07

profits from that to upgrade your flip

44:10

to the next one, upgrade your flip

44:12

to the next one and upgrade your

44:14

organically grow your cash base with profits

44:16

to increase the quality of the flip

44:18

that you are doing. Because

44:21

what you are doing causes more people

44:23

to go broke than it prospers more

44:25

people, including me.

44:29

So I am really scared for you because

44:32

the thing that has to go through your mind when

44:34

you are doing these deals is that this is all

44:36

going to work and it never in

44:39

real estate. I have done thousands of

44:42

transactions. It never

44:44

works exactly the way you thought it was going

44:46

to. Yep, that is exactly right. And

44:50

Tara, my husband, just even this last year, he

44:52

has kind of started in this game. He

44:54

has done three flips. Yeah, and

44:56

we have cash flowed it and you

44:58

are right. And he is good at real estate.

45:00

And he does it. So I cannot

45:02

take any credit. But yeah, it is

45:04

a state sale. There are dead rats.

45:08

They are not pretty properties. But

45:10

then when you go and what you are saying, you

45:12

make the selections and it is us making the selections

45:14

out of our own account, you are

45:16

like, okay, what can we do here, here to

45:18

save money here? I mean you are thinking through everything. We brought the kids

45:20

out to do the yard work, speaking over Easter

45:23

to help move some stuff before they went

45:25

through and tore out the bushes. You

45:27

just think about it different. And

45:29

it is a slower process. It is not as fun

45:31

and flashy. But there is

45:34

so much less risk. And if something were to

45:36

happen, you are okay. You are okay because you

45:38

do not owe a bank something. It

45:40

just goes back to the options like we talked about in the

45:42

last hour. I mean let us pretend there was a Fauci

45:44

pandemic or something like that. And

45:46

the market just froze like a deer in the headlights and nobody

45:48

is leaving their home. And they are cuddled up

45:50

in the corner with their mask. Well, and what happened

45:52

with you was that you had so many of those

45:55

going and you were good

45:57

at it. And because of that, you kept...

46:00

Building on it and making a bigger bigger

46:02

risk and then when I had a million

46:04

seven in finance

46:06

flips at 24 years old I Ode

46:10

the bank a million seven on flea mine it

46:12

remind everybody cuz that was 1984 decades ago because Million

46:16

seven now for some people okay,

46:18

so it would be eight million now,

46:20

okay? Yeah, so I the equivalent of

46:22

eight million dollars financed in today's dollars

46:25

under flips at 24 years old in 1984 Is

46:28

it one way one million seven one million one

46:30

with one bank and? This

46:32

is how I learned not to borrow money Yeah,

46:38

and I had I had 30% equity positions in almost

46:40

every one of them. I was not laid on a

46:42

single note So what happened

46:44

Dave what happened to your little house of

46:46

cards the bank got sold? Small

46:50

town bank doing business with me they

46:53

knew I knew what I was doing my family had

46:55

been the real estate business I've got a history family

46:58

history of knowing what we're doing all Sudden

47:01

some bozo in Atlanta instead of Nashville

47:04

is making a decision and he looked down and said a 24

47:06

year old owes

47:08

us a million three have we lost

47:10

our minds as a bank answer yes,

47:12

but and they called our notes Which

47:15

they have the right to do with

47:17

commercial paper It

47:19

has a call provision in it if they

47:21

don't like the quality of collateral and they

47:24

suddenly just declared that they didn't like

47:26

the quality of their collateral anymore and

47:29

Now I've got to come up with a million three, and I'm

47:31

24 years old It's all tied up in real estate, and I

47:33

probably got 30,000 bucks in cash Because

47:36

I was a freakin genius And

47:39

had it all figured out now. There's

47:41

your tick-tock deal right there

47:44

You tick-tock morons wanting to flip houses,

47:47

so there you go and so That's

47:50

exactly what's happening now that that

47:53

and I spent the next three and a half two and a half

47:55

three years of my life Losing everything I own And

47:58

so the year Rachel was born We end up found. Bankruptcy.

48:00

The bottom of it lost every stink

48:02

of things. One year I made two

48:04

hundred and fifty thousand dollars as twenty

48:06

thousand dollars a month and nineteen eighty

48:08

four dollars. The next year my taxable

48:10

income was Six thousand dollars. I spent

48:13

the whole we're selling stuff to avoid

48:15

foreclosure or being foreclosed on on the

48:17

way down into bankruptcy. So.

48:19

Yeah, trauma. I'm I'm

48:21

a Comma survivors so that's it. And saw

48:24

Dave don't borrow money when the borrower his

48:26

slave to the lenders in the bible. I

48:28

think God smart. I. Think

48:30

God know something I don't know and I don't

48:32

borrow money more. All that to say, terra. I'm.

48:35

In ah the wrong guy now but know

48:37

if you know if some whoever ever told

48:40

you to call over here of the i

48:42

think they set you up but I'm but

48:44

the ah. But. Yeah, I want you

48:46

to go do flips. I mean, my son

48:48

in law doesn't my daughters' husbands records and

48:50

I taught him how. Are you know

48:52

he taught him a lot Not have. Not

48:55

ever having a timeout about foreclosures. My

48:57

roses, Yeah, he worked running our ramsey

48:59

of. Portfolio. For a lot

49:01

of years and still runs it. but he's

49:03

he's at any using the formulas right now

49:05

that we talked about back in those days

49:08

and he and he's paying taxes on not

49:10

against flip. Do it with cash and you

49:12

make way better decisions all the way across

49:14

the boards and you don't turn yourself in

49:16

or motivated seller. And

49:18

new will hear any that on tic toc

49:21

are contagious. This is the Ramseys. Fragile

49:28

Cruise Ramsey personality is my cohost

49:30

today. Glenda is and grand in

49:32

Cedar Rapids, Iowa Hi Linda how

49:34

are you. I'm good.

49:37

How are you guys? Thank you for accepting my. Call sir

49:39

that's going up. Against

49:42

other way we are. Happy

49:45

new as. For.

49:47

His cell apartheid was like was didn't

49:49

I just wanted to make sure you

49:51

knew that era. Drop out

49:53

our our cash. Outlay.

49:56

Okay, so my question as we've

49:58

always or that years. say mobile

50:00

homes go down in depreciation. They do.

50:03

We agree. If you're in debt

50:05

and you own your mobile home in the

50:07

land but not in the

50:09

ideal living situation, should we sell to

50:11

get a house or stay? We

50:13

have animals so we can't rent and we

50:16

have many, many animals. We

50:19

take care of my parents and my dad has dementia and

50:22

it's also affecting our marriage of where we're

50:24

at. So what would

50:27

you say to them too? What

50:29

is affecting your marriage about where you're at? We

50:33

have family that live out that way. The

50:36

family one could be next door. There's

50:39

drug use. So you

50:41

want to move away because of that too? Yeah,

50:46

yeah, absolutely. I just don't want to be in

50:48

that kind of a friend. You

50:50

want to be around people. Yeah,

50:52

you want to be around people that you like, like

50:54

you say. So what kind of animals have

50:56

you got? Chickens,

50:59

ducks, dogs, cats, rabbits.

51:04

And how many acres do you have now? We

51:07

have close in acres. One acre? Close

51:11

to it, yes. But you're just in the country so

51:13

you get away with all that? Yes,

51:15

yeah, yeah, yeah. These

51:17

aren't city chickens, okay. No, no, no,

51:20

no. These aren't millennial yuppie chickens, okay.

51:22

Nope, they're not eggs or eggs. Yeah,

51:25

all right. Yes. So

51:28

country chickens. Oh my God,

51:30

country chickens. How much could you sell everything for, Gilda?

51:32

If you sold it, what would it bring? We're

51:35

guessing about $100,000. With the

51:37

land and the mobile home together? Yes, because we did sell it for the

51:40

mobile home. What do you own? Nothing, we own it

51:42

outright. So sell it and go buy

51:44

something for $100,000. Ooh, can we do that for a house though? Because I don't want

51:46

another mobile home. No, you're not going to get another mobile home. It's kind of a

51:48

good idea. I'm going to get another mobile home. I'm going to get another mobile home.

51:50

I'm going to get another mobile home. I'm going to get another mobile home. Can

51:52

we do that for a house though? Because I don't want another mobile home. No,

51:54

you're not going to get another mobile home. It kind of defeats the purpose. No, but

51:56

you can take out. It might be a good idea. It

52:00

might not be much of a house, but how much of

52:02

the debt have you gained? About

52:05

$50,000. On what? Oh

52:08

boy, here we go Dave. It's

52:13

averaging $50,000. My number is I don't have

52:15

exactly with me, but it's about $13,000 on

52:17

a car, which will open and pay off in the next

52:19

year. We have about a $17,000 personal

52:22

loan because I got plastic surgery. I

52:25

know, don't yell at me. We

52:27

have about, I'd say about

52:30

$12,000 in student loans, just

52:32

miscellaneous debt, anything else he's...

52:36

Okay. Okay,

52:38

so what I would do is

52:41

go out and start shopping for

52:44

a very small or not

52:47

such good condition home that

52:51

is stick built that will go up in value as you

52:53

fix it up on a piece of ground. Okay.

52:56

And try to make

52:58

a move that way. Okay. Now,

53:00

then the other options are, okay,

53:03

because whatever the value of this

53:05

mobile home is in five years, can you and I agree it's

53:07

going to be way less than it is now? Oh, absolutely. Okay,

53:11

so you're causing your money to go

53:13

backwards every day you keep this and

53:15

you're living next to family drug addicts.

53:18

And so there's a lot of reasons to move,

53:21

but every time we do

53:24

something, there's always, there's

53:27

the pain of staying there next

53:30

to the mess and the pain

53:32

of staying there with a mobile home going

53:34

down, but the pain of moving to get

53:36

your family away from those two things might

53:39

be no chickens. I

53:42

would be fine getting away from it. Yeah. So

53:45

the animals, you may have to cut the

53:47

animals down to a level that you can

53:49

rent for a little while, write a check

53:51

and pay off everything and

53:53

have a lower animal level. And

53:56

I love animals, but you've got to make choices

53:58

in these situations. Yeah, exactly. And

54:00

it's greater in this situation, obviously, from

54:02

a financial and just, yeah, getting away

54:04

from the mess to

54:06

be able to say we have peace

54:09

over here. And that may mean eliminating

54:11

selling off. Yeah. So let's

54:14

pretend that we could write a prescription for

54:16

you if we were the doctor, okay. And

54:18

here, if you go fill this prescription, you

54:21

will be wealthy. Okay.

54:23

So you sell the place. You

54:27

go rent something with $50,000 in the

54:29

bank and zero debt, and

54:31

you straighten your act up and

54:33

go back through financial peace university, get on

54:35

a budget, increase your

54:38

incomes, and let's pile up cash

54:40

on top of that 50. And

54:42

two years from now, let's buy a nice place for

54:44

150 because

54:46

you have no payments except a little rent

54:48

payment. It's going to cost you some

54:51

animals. And you're

54:53

going to have a lot of peace in your life because you have zero

54:55

debt and zero drug use

54:57

next door. And

54:59

you're going to be cleaning up you looking

55:01

in the mirror and you're not going to say I'm a dropout

55:04

anymore. You're going to go back through financial peace university and

55:06

I'm going to pay for it. And

55:08

if you go do all of that stuff, your

55:11

life is going to be such a completely different

55:13

place four years from now, five years from now

55:16

than it is now. But if

55:18

you go do one of those things, it's

55:20

not going to work. You're going to be right where you are. You

55:23

can't just do part of this. You

55:26

can't take, if the, if the doctor gives you

55:28

four prescriptions, say, I'm just going to

55:30

take one of them and then

55:33

gripe cause you're still hurting. Yeah. You

55:35

know, I'm still ill. My health is

55:37

still bad. So you're going to have to

55:39

do the whole thing, Glenda. And

55:41

if you do that, honey, you can do it. The

55:44

lady I'm talking to is not dumb. You're smart. You

55:46

can do it. You just have not chosen to do

55:48

it yet. So now it's time

55:50

to choose. So hang on. We'll help you

55:52

if you want it. If you want financial peace, we'll

55:54

give it to you. You go back through it this

55:56

time. Be serious. Like your life depends on it because

55:58

honey, it does. The quality of

56:00

your life depends on you getting your act together and

56:03

dump that stuff man and let's make the move

56:06

make it happen Boom, boom, boom, boom, boom. You

56:08

don't have to be a mess. You're choosing to be a hot mess

56:11

Change the change the choices and

56:13

you can do it. You're the kind of

56:15

lady that can do it. You got the stuff I'm

56:18

amazed what happens when people follow through on all that when

56:21

they do the whole thing. Yeah. Yeah And

56:24

how pitiful the results are when you just do part of it Yes,

56:26

but the pain as you're giving up things in

56:28

the present that you feel like oh my gosh

56:31

Well, we need this and that and what's the devil?

56:33

I know it's that you know, it's the mess that I know Yeah,

56:37

I'm used to my mess And the thing

56:39

is is that you can get back to part

56:41

of the life that you're you know Sacrificing

56:44

right now and the

56:46

things that you love right? I mean same with like a

56:48

car for instance I know car is not an animal but

56:50

like, you know, we tell people sell the car You can

56:52

get that car again one day when you pay for it

56:54

Like it's not like you never get that car again But

56:57

do it the right way and even like think you

56:59

know something like the animals It's like yeah, maybe for

57:01

a season you don't have animals But

57:03

if you really miss that then you work towards the life to

57:05

get them back and to be able to say yeah We want

57:07

that life again, and that's the beautiful thing about it, but you're

57:09

just doing it the right way Which

57:12

the order is really important in

57:14

that to find a success and

57:16

they're doing well Yeah,

57:18

that's exactly right Yeah Well

57:21

me and you didn't grow up on a farm

57:23

But your mom did and her emotional attachment to

57:25

animals is almost zero. Oh my gosh So

57:28

dad they always leave because you sell them. That's

57:30

what you do. You're on a farm. That's what

57:32

you do And so that the

57:35

need to you know So she

57:37

still does not grasp the idea that that

57:39

our dogs are one of

57:41

our children. She can't get that She's just like you

57:43

are a weird man. And so you do love a

57:45

dog I do love a dog and I love babies

57:48

and dogs. I know that's what a lot of

57:50

people don't know internet You know that Dave can

57:52

be harsh Dave can be harsh, but

57:54

not the baby So when your dog is that

57:56

yeah you came over when we had to put knowledge out and died

57:59

late in the floor with our lab and cried before

58:01

we put her down the night for

58:04

me. You really are oversharing. You did?

58:06

What? It's beautiful! It's so great. He

58:08

does. He loves dogs and babies. My

58:10

grand dog for 10 years. I know. It was terrible. It was

58:12

a good dog. It was so sad. Losing a

58:14

dog is terrible. Terrible, terrible. So we want you to be able to

58:16

get back to that. We're not animal haters at the point. But

58:19

sometimes you've got to go, nah, 16 cats. Yeah,

58:23

something's got to go. And

58:25

that's 15 of them. Or 16. In case

58:27

of a cat. I

58:31

can't keep up with that. I don't

58:33

know. I think we can get there. Oh, here we

58:36

go. The hate's going to come pouring in.

58:38

I love it. This is

58:40

the Ramsey Show. Rachel

58:47

Cruz, Ramsey Personality is my co-host

58:49

today. Open phones at 888-825-5225. Kayla

58:54

is with us in Fort Worth, Texas.

58:57

Hey, Kayla. Welcome to the

58:59

Ramsey Show. Hi. Hi. Thanks for taking

59:01

my call. Sure. Not going to help. Well,

59:05

my husband and I, we're trying to figure out how

59:08

to increase our income so

59:10

we can meet our monthly expenses and

59:12

then also pay debt down. Kind

59:15

of feel at a loss at the moment. So, we're

59:19

total that we have is about $37,000. We

59:24

need about $7,000 a

59:26

month just to pay, meet

59:29

our living expenses and

59:31

then make minimum payments just on card

59:33

balances right now. My

59:35

husband- Yes.

59:39

You don't need $7,000 a month to do that.

59:41

What in the world are your living expenses? So,

59:46

we're just looking at the

59:48

expenses like paying the

59:50

rent, just living all of that and then

59:53

paying down debt just the expenses that

59:55

we have. How

59:58

much are that? Do you know how much? minimum

1:00:01

payments are not living expenses are

1:00:08

really many more now so we have

1:00:10

the total credit card debt is $7,000 for those

1:00:14

are like 500 limit ones 3,000 to our $1,000 limit and those are about

1:00:19

maxed out. Okay

1:00:23

but how much money do you guys need to keep those current

1:00:25

per month? What's the minimum payments on your $37,000 worth

1:00:28

of debt equal per month? So

1:00:32

for the card payments it's just

1:00:34

$650 a month minimum. Okay. Then

1:00:36

we have another $6,700 a month

1:00:38

on a larger

1:00:41

loan of $21,000. Okay. And

1:00:45

then you know just living expenses on top of

1:00:47

that and the card payments. Okay. So wait a

1:00:49

minute. Yeah, there's only $28,000. You said you have

1:00:51

$37,000. How much is your car payment? Car

1:00:55

payment is $250 a month. We owe

1:00:57

$9,000 and it's worth about $10,500. Okay. So yeah you're

1:00:59

getting up to $17,000. $2,000

1:01:01

a month covers your minimum. And you need

1:01:07

$5,000 a month in addition to that to live.

1:01:09

3,000. Yeah. How much is rent?

1:01:13

Rent is $26,000.

1:01:16

$26,000. Okay. What's your

1:01:18

household income?

1:01:21

My husband just started a new job a month and a

1:01:23

half ago. It's car sales. And

1:01:26

he just started last

1:01:29

month he made $1,400 total. And

1:01:31

this month halfway through he's made

1:01:33

$16,000 just in the half month. So

1:01:35

he's doubled that at least. And

1:01:37

people keep telling him at work that come the

1:01:40

third month the back end stuff rolls in and

1:01:42

that it should not be hard for him to

1:01:44

do about $10,000 a month. And

1:01:46

he works hard at it. He's there six

1:01:48

days a week at least. How much are

1:01:50

you working Kayla? We

1:01:53

have three kids at home five and under. And

1:01:55

the little bit I do is like 180 a

1:01:57

month. It's just content writing. Yeah.

1:02:00

It's not much. So your problem is your

1:02:02

husband is starting a new job and then

1:02:04

he isn't making any money yet. Correct.

1:02:07

That's your real problem. Yeah.

1:02:11

They're like, we're living on a prayer waiting until it

1:02:13

comes in. What was he doing before? Last

1:02:17

year he had quit his job with

1:02:20

17 years at Costco. He

1:02:22

was working there as a supervisor. He

1:02:25

quit the job after two or three

1:02:28

years of calculating risks. He took out

1:02:30

the 401K that he had built up

1:02:32

from that to move here to Fort

1:02:34

Worth and to start a business, a

1:02:36

photography business that he had wanted to

1:02:39

do. And

1:02:41

he made sure there was about a year's worth

1:02:43

of living expenses from that to live on but

1:02:45

nothing has come from it. So he went out

1:02:47

and got a job a couple months ago to

1:02:49

make sure we can get to

1:02:51

the point where we can make the... We

1:02:54

didn't have any credit card debt at that point. He paid

1:02:56

all of that off. Is all the savings gone?

1:02:59

Yes. Yeah. So

1:03:03

the bottom line is Kayla, you're terrified. Oh,

1:03:05

okay. This

1:03:08

is pretty scary. You got little babies

1:03:11

at home and no money to eat

1:03:13

with. Yeah, pretty much. Yeah.

1:03:19

I'm sorry, hon. And

1:03:25

he's not a bad guy. He's out there working

1:03:27

and trying. No, he's... Nobody's

1:03:29

throwing him under the bus but this is

1:03:31

a scary situation. Do you have family around

1:03:33

Kayla at Fort Worth? No.

1:03:36

No, they're actually back on the West

1:03:38

Coast where he moved. Okay. Okay.

1:03:42

Are you guys in a good church? Yes.

1:03:45

Good. Yeah, we got connected really good. Good.

1:03:48

Because you need good community around you while you turn this

1:03:50

around. So what we need

1:03:52

to say out loud, and he says it with you too,

1:03:54

is that I don't

1:03:56

really care what the guys at work say. care

1:04:01

what actually happens and

1:04:03

and so if he doesn't get

1:04:06

his income up very rapidly at

1:04:08

the car lot he's going to be doing something else. Yeah

1:04:11

and he's that's the

1:04:13

struggle he was making of going back

1:04:15

to Costco but like right now what

1:04:17

he just made in this half

1:04:20

month so far that's about the same excuse

1:04:22

me that he was making before. Yeah

1:04:25

and you can't. And what it may look like

1:04:27

too Kayla is working nights and weekends and

1:04:29

supplementing some of this and I

1:04:32

mean because even the margins of just living

1:04:34

and you guys paying rent

1:04:36

and eating and all of that right regardless of

1:04:38

paying off debt just. I'm not worried

1:04:40

about you paying off debt right now I'm worried about your paying rent.

1:04:42

So that's what I'm saying is I think that

1:04:44

maybe for a transitional period there's probably a reality

1:04:47

that he's going to probably get a second

1:04:49

job until which is the prayer

1:04:51

that this third fourth month hits with

1:04:53

his new job and then you're able to

1:04:55

say okay good now we have we have

1:04:57

a foundation under us so this is

1:05:00

what we can go for. There's two things that will

1:05:02

help you with the level of fear

1:05:04

the terror rising up in your

1:05:06

stomach up into your throat okay thing

1:05:09

number one is you need to

1:05:11

carefully prioritize the money that you

1:05:13

do have and I'll do it for you right

1:05:15

now are you ready. We call

1:05:17

it the four walls when you're in a crisis and

1:05:20

you're in a crisis you got

1:05:22

to keep the four walls of your house up and that

1:05:24

means first number one

1:05:27

food before you

1:05:29

buy anything else you buy

1:05:31

groceries not eating out you guys can't afford

1:05:33

to eat out before you

1:05:36

do anything else you buy

1:05:38

groceries without guilt your

1:05:41

primary job before you do anything the second

1:05:43

thing you do is

1:05:45

you keep the lights and the water on

1:05:50

the utilities the third thing you do is

1:05:52

you pay the rent before

1:05:56

you do anything you do those three things

1:05:58

and I think you've got enough to pull

1:06:00

those off already. That

1:06:07

means that some of the rest of this may not get paid

1:06:09

this month because

1:06:11

we made choices of what was

1:06:14

important versus what was less important.

1:06:17

And then as we get on down through there, I'm

1:06:19

going to pay a car payment because I need transportation

1:06:22

but MasterCard and student loans

1:06:26

and protecting my credit are

1:06:28

not on the list of things I worry about when

1:06:30

I'm in your situation. You're

1:06:34

just going to get behind with them. If

1:06:36

something has to be behind, choose

1:06:39

the right thing to be behind.

1:06:43

And that's called unsecured debt. That's

1:06:46

what the right thing is. And

1:06:49

it's a bunch of other miscellaneous crap

1:06:51

that's in your life that you

1:06:53

just go, we just can't do that because we

1:06:55

bought food, lights, water,

1:06:58

rent, car, food

1:07:01

shelter, transportation,

1:07:03

clothing. You probably don't need any

1:07:05

clothing. You're probably okay for a while. But

1:07:07

you just get by. You just get by. You

1:07:09

just get by. You just get by. And then

1:07:11

his income comes up or he changes jobs and

1:07:13

his income comes up and we start to make

1:07:16

moves on these other things later.

1:07:19

First catching up on anything that's behind and

1:07:22

later doing that. But if you'll

1:07:24

take care of food, shelter, clothing, transportation,

1:07:26

and utilities before you do anything else,

1:07:28

your peace level will increase. I know

1:07:30

I was in your situation once. Then

1:07:35

secondly, the thing that

1:07:37

goes with that is to budget. And

1:07:39

again, that's just on paper, on purpose.

1:07:42

Use the every dollar app or work with your

1:07:44

husband. And both of you look

1:07:46

at these numbers every night. We

1:07:49

have enough for food. We have enough

1:07:51

for lights and water. We're going to pay the rent

1:07:53

right here. We're going to pay the car payment right

1:07:55

there. And when you're looking at

1:07:57

the plan and you're executing the plan. or

1:08:00

strength order of priority

1:08:02

it is going to give you peace a

1:08:04

lot more peace in your right now because right now

1:08:07

you got chaos on top of shortage yeah and

1:08:09

Kayla's down the line Christian will pick up and will

1:08:11

give you a every dollar premium code that you can

1:08:13

connect with your checking account and you guys free and

1:08:15

yeah and for it to be real

1:08:17

time that's one of the best things that

1:08:20

you guys can do you stay right on top of

1:08:22

it and you call us again if you need help on

1:08:24

this is the Ramsey show knock

1:08:29

knock who's there your taxes well actually

1:08:31

it's George but you get the point

1:08:33

April 15th is the last day

1:08:35

you can file your tax return or request

1:08:38

a deadline extension so head to Ramsey smart

1:08:40

tax and get this party started Ramsey smart

1:08:42

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1:08:44

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1:08:46

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1:08:48

other guys so filing your federal

1:08:50

return is easy and affordable like

1:08:52

less than 35 bucks affordable so

1:08:54

go to Ramsey solutions.com/smart tax so

1:08:56

when the deadline comes knocking you're

1:08:58

resting easy that's Ramsey

1:09:01

solutions.com/smart tax every

1:09:05

dollar is our world class budgeting app that

1:09:07

helps you manage money the Ramsey way it

1:09:09

simply works wherever you are iOS Android

1:09:11

online you can start every dollar for

1:09:14

free and immediately see where you stand

1:09:16

with your money get organized

1:09:18

if you're new to every dollar will

1:09:20

show you a long term financial roadmap

1:09:22

track your net worth debt free date

1:09:24

retirement date baby steps progress and of

1:09:26

course help you keep up with your

1:09:28

money and will coach you along the

1:09:30

way download the free app for iOS

1:09:32

Android or go to every dollar dot

1:09:34

com and get started on the desktop

1:09:36

George and Jade will be hosting a

1:09:38

budgeting live stream on YouTube

1:09:41

on the 11th of April and

1:09:43

they will be answering the top questions we get

1:09:45

around budgeting how do I get started can

1:09:48

a budget can I budget and still enjoy life

1:09:51

dealing with changes that come up through the

1:09:53

month and how couples can budget together stay

1:09:55

tuned for more details if you have budgeting

1:09:57

questions that you want answered on that live

1:09:59

stream. Dream. Feel. Free

1:10:01

to do so, just email them to us

1:10:03

at ask. At. Ramsey

1:10:05

solutions.com Ask at Ramsey

1:10:08

solutions.com. Against. The why

1:10:10

the best parts I love hosting with you is

1:10:12

the generational. Difference. Cashier

1:10:14

like a classic boomer. I'm a

1:10:16

millennial and the generation below me

1:10:19

as didn't Z K. Yet the

1:10:21

some get okay okay. So this so they

1:10:23

were playing games. States are not to make a

1:10:25

face. Try not to

1:10:27

make a face subtle boy post

1:10:29

now results came out and cnbc.com

1:10:31

o brother and bathers without it

1:10:33

off. Ready ready. One. And

1:10:36

boards in the Taxpayers say

1:10:38

that they need a therapist

1:10:40

now to deal with the

1:10:42

stress of tax filing season.

1:10:45

Additionally, fifty four percent filing

1:10:47

taxes of gyms. The. They.

1:10:50

Were brought to tears. Ah,

1:10:53

they were brought to tears in the past or

1:10:55

expect. To pry this year over

1:10:57

Texas. That's.

1:11:01

So or or.when they are there, others, it's

1:11:03

traumas. It's a drama. Not one word for.

1:11:06

Of realizing taxes and there's and

1:11:08

I go to therapy. I love

1:11:10

therapy. Sergeant One, Why Are you. Vote.

1:11:15

Resources and said that, Well I mean

1:11:17

where do you think taxes come from?

1:11:20

I will you vote for. So.

1:11:23

Try Boating my somebody, the heart attacks and

1:11:25

sky. Yes, the regardless of party pay

1:11:27

taxes. Regardless,

1:11:29

of party you pay taxes are ya

1:11:31

know yet up and don't know on

1:11:34

certain than others but never fraud but

1:11:36

we heard was of hadn't hadn't hadn't

1:11:38

seen a therapist for it but been

1:11:40

don't in a while. Anyway,

1:11:43

we read that in the content meeting right

1:11:45

before the Zero and I saw it like

1:11:47

oh no, we're crying. Oh no, I mean

1:11:49

that bar, you guys. it's so low. Like

1:11:52

so low. Like winegrowing are like the next

1:11:54

generation though. like scarcity. Just go to war.

1:11:56

And it. They do suck. Taxes or

1:11:58

not, I don't cry,

1:12:01

I get angry. But you can do this. I'm

1:12:03

perpetually angry and angry. OK, so for

1:12:05

that, is it as from a boom,

1:12:07

I'm even scared to ask, from a boomer's opinion.

1:12:10

From a boomer's perspective.

1:12:14

Is it that we haven't prepped every

1:12:17

generation for what it looks like from

1:12:19

a workforce standpoint, the

1:12:21

applications of being an adult? Is

1:12:24

it that the reality hasn't been

1:12:26

talked about or taught? What

1:12:30

do we think that is? For real, though, is 1 in 4 Gen Z that

1:12:32

they have to go see a therapist because of the amount of stress

1:12:35

because of tax final season? You know, there's a

1:12:37

couple of things, possibilities there. Because

1:12:39

we've got 1,100 folks

1:12:41

on our team, and the vast majority of the

1:12:43

people in this building are Gen Z. It's a

1:12:45

lot of young people, millennial. And millennial. We have

1:12:47

a young team. There's a

1:12:49

few exers and very few boomers in the

1:12:51

building. And so we've

1:12:54

got a crew of these kind

1:12:56

of people. And honestly, the people that

1:12:58

work here aren't crying or seeing a

1:13:00

therapist over their taxes. So I'm calling

1:13:02

BS on the survey to start with.

1:13:04

Oh, you're going to the source. I

1:13:06

think that these two generations have more

1:13:08

tough people in them than that survey

1:13:11

indicates. That survey

1:13:13

says the entire generation's a bunch of wusses.

1:13:16

And that's just not true. That's not my experience

1:13:18

with Gen Z. I

1:13:21

do find, and I've said this many times, and I

1:13:24

said it on Fox last night, and it got all

1:13:26

the hate people going again. But I

1:13:28

was on Fox Business yesterday afternoon. But

1:13:31

the millennials got trashed for being

1:13:33

participation trophy, living in

1:13:35

their mother's basement, and all that crap. Being avocado

1:13:39

taste, toast, latte drinking,

1:13:41

all that crap. And

1:13:44

then some of that same kind of stuff

1:13:46

is coming on to Gen Z. And I

1:13:49

am not a hater

1:13:51

of those two generations, because my personal

1:13:53

experience inside this building with the ones

1:13:55

we have hired is quite different. And

1:13:58

the ones that call on here on the air. Yeah,

1:14:00

they call in the air. They're very mature very

1:14:03

serious very focused very missional

1:14:06

Now I do I have observed on those

1:14:08

two generations in particular that There's

1:14:11

very little middle ground They

1:14:14

don't hang out in the middle They're

1:14:16

either very serious very missional

1:14:20

Mature beyond their years charge

1:14:23

the gates of hell with a water pistol or

1:14:25

they absolutely suck They're

1:14:28

just horrible Participation

1:14:30

trophy live in their mother's basement useless

1:14:34

entitled arrogant brats

1:14:38

And so they're either the

1:14:40

best or they're the worst The

1:14:43

ones that I were that we were and they're

1:14:45

great to interview because they'll just come into the

1:14:47

interview and go you owe me and I'm like

1:14:50

I owe you where the front door is hit it and The

1:14:53

interviews over or they come in and go give

1:14:55

me put me in coach. I'll charge the gates

1:14:58

I want to do I want to do work

1:15:00

that matters and Ramsey does work that matters and

1:15:02

I won't be part of this team And they're

1:15:04

really easy to interview because boom boomers come in

1:15:06

and they lie They fake

1:15:08

it They act like they're

1:15:10

wanted they act like they think you want know

1:15:12

They don't care they care so much much what

1:15:15

you think that they they put on the chameleon

1:15:17

You know, it's a it's a donkey dressed up

1:15:19

like a thoroughbred. Yeah Yeah, and they make you

1:15:22

think but the Gen Z they don't give a

1:15:24

crap what you think They just

1:15:26

they just is what they is. I love

1:15:28

them. I think they're awesome. Yeah Yeah, and

1:15:30

so I don't believe that number I don't

1:15:32

think that that three out of four seventy

1:15:34

five percent of the Gen Z are so

1:15:36

Wussified that they're sitting in the floor sucking

1:15:38

their thumb crying over their taxes. I

1:15:41

think that's CNBC bull crap. Okay Do

1:15:45

you observe that with those generations that we

1:15:48

think that we it's not a weakness It

1:15:50

is I do think that the I do think

1:15:52

that like your generation And and

1:15:55

and older there it there was more of a mentality of

1:15:57

like you pull yourself up by your bootstraps you get to

1:16:00

work, you shut up, you do the thing and you just

1:16:02

go, go, go. Where the pendulum

1:16:04

I think has swung so far in

1:16:06

actually tapping into some level of emotional

1:16:09

awareness and comfortable with like,

1:16:11

okay, what's really going on? Trauma

1:16:14

in my past, I seek help,

1:16:16

you know what I mean? That's

1:16:18

applauded. Right? So there's more of that

1:16:20

which I think... Yeah, but that's different than I'm crying for doing

1:16:22

my passes. I know. But

1:16:25

I do think that the emotional state can...

1:16:27

Now, crying for doing your taxes is straight-up weakness. I mean,

1:16:29

that's not... Yeah. That's just

1:16:31

wooshed. Okay? But I do

1:16:33

think that the emotional space, right? Like even parenting. I'm

1:16:36

a young parent and so like you hear the extremes

1:16:38

of parenting and it's like, oh, well, are you sad

1:16:40

about wearing a coat to school today? Tell me about

1:16:42

your... You know, and it's this whole thing where you're

1:16:44

like, you just gotta wear a coat. Like

1:16:47

so I do think that there is a level of

1:16:50

where the emotions can drive a lot of

1:16:53

things in life, more so than the boomer

1:16:55

generation. If you wanted

1:16:57

to buy into some of the rhetoric on the

1:16:59

stereotypes, which I'm not sure I do, I just

1:17:01

did a good job of defending the generation, I

1:17:03

think. Yeah, yeah. The thing

1:17:07

that has been thrown at them

1:17:09

that could be true is they've

1:17:11

never really had a hard time, so

1:17:13

they're not tough. Yes,

1:17:16

I would say that's fair. And Ken

1:17:19

Coleman's done a lot of preaching and

1:17:22

ranting lately about, teach your

1:17:24

kids to do hard things. Let

1:17:27

them get a couse. Teach your

1:17:29

kids to do hard things. And don't

1:17:31

be the bulldozer parent where you paved the

1:17:33

way so everything's easy. And that is what

1:17:35

happens. Followed by a helicopter, yeah. A helicopter followed by

1:17:38

a bulldozer, whatever it is. Because

1:17:40

helicopters, we are sure now create snowflakes.

1:17:43

We're positive. And I think it's more the bulldozing parents that

1:17:45

clear the way so there is no hard. They

1:17:48

don't have any level of it. As

1:17:51

parents, we love our children. We want to make

1:17:53

life good for them. But by not allowing them,

1:17:55

not making, not putting them in situations where they

1:17:57

learn to do hard things, they're not.

1:18:00

tough and because light you got

1:18:02

to be a little tough sometimes and Gen Z is

1:18:04

the first generation where these smartphones like my generation

1:18:06

we at least had flip phones like I remember

1:18:08

flip phones like the technology progressed but I do

1:18:11

wonder too with that but anyway oh

1:18:13

I'm sure screens are at the heart of

1:18:15

most evil but I do what you know I

1:18:17

didn't wonder no question yeah anyways so I like that

1:18:19

you were

1:18:22

like I don't believe I don't believe that was for I mean

1:18:24

have we got the

1:18:27

only 700 of them in the

1:18:29

nation that are tough I mean you know really

1:18:31

I don't believe that I mean I can we

1:18:33

got the people you and I work with every

1:18:35

day are not any of that they're

1:18:37

great no they're great yes this level

1:18:40

this is the Ramsey show live

1:18:45

from the headquarters of Ramsey solutions

1:18:47

it's the Ramsey show where we

1:18:49

help people build wealth

1:18:52

do work that they love

1:18:54

and create actual amazing relationships

1:18:57

open phones this hour Rachel Cruz

1:18:59

Ramsey personality co-host

1:19:02

of the ever-popular smart

1:19:04

money happy hour and my

1:19:07

daughter number one best-selling author she's my co-host the phone numbers triple-8 8

1:19:09

2 5 5 2 2 5 and Maria

1:19:14

is next Maria is in

1:19:16

Reno hi Maria how are you

1:19:20

are you better than we deserve what's

1:19:22

up well first of

1:19:25

all it's a privilege to be able to ask

1:19:27

this question because my husband I've been following your

1:19:30

baby steps and we did financial piece before

1:19:33

we got married so now we're

1:19:35

stuck though because we've

1:19:37

been off script you're stuck

1:19:39

because what we went off script we

1:19:42

were following on your baby and there's no

1:19:44

top you fell off the proverbial wagon okay

1:19:46

I'm hoping

1:19:50

it wasn't a stupid decision but anyways

1:19:52

it was good intentions so we saved

1:19:54

the 20% for a down payment and

1:19:57

at that time just with

1:19:59

family circumstances We thought we

1:20:02

would offer for my mom to come and

1:20:04

find property with us with two homes and

1:20:06

whatnot And kind of get her out of

1:20:08

her situation And

1:20:10

there's a variety of reasons that played into that But

1:20:13

just you know, she could get out of debt let not pay

1:20:15

for a house that she could Live

1:20:18

in without making payments and then be able

1:20:20

to work and save for her retirement and

1:20:22

whatnot So your mom and you

1:20:24

went in bought a house together So

1:20:26

what we did was we found property with

1:20:28

two homes, but it is one person

1:20:32

But there's two homes on it and

1:20:34

they both were fixer-uppers Still

1:20:37

are we're working on them. But

1:20:39

at least where we're at the dilemma at

1:20:41

this point is How

1:20:45

do we legally kind of store all this out

1:20:47

because we we bought it It was kind of

1:20:49

like green lights all the way and we we

1:20:51

did counsel before we bought with a lawyer friend

1:20:53

and some other Friends of like is this can

1:20:55

we make this work like legally? How does you

1:20:57

know? How will this all go down and they're

1:20:59

like, yeah, we can sort it all out So

1:21:01

we felt like we have green lights and then

1:21:03

we found this property and whatnot But

1:21:06

we went in she went went in

1:21:08

25% of the purchase price. We went in 75% We're

1:21:12

all on title But

1:21:15

now we're just trying to figure out how

1:21:19

To legally kind of source this out what's

1:21:21

going and who's trust how do we really

1:21:23

figure out? percentage of

1:21:26

ownership like ideally she feels like

1:21:29

For her retirement consideration. She should keep a stake

1:21:31

in real estate The

1:21:33

advice my husband and I received was buy

1:21:36

her out and get her off title. It would

1:21:38

be much simpler And

1:21:41

so we're kind of just like scratching her heads

1:21:43

it seems simple I'm like hot like positive like

1:21:45

we could figure this out going in and now

1:21:48

it just kind of seems muddy to us So

1:21:50

what I'm saying is the council that

1:21:52

you received sucked well

1:21:57

It did Whoever

1:21:59

this lawyer you're gonna need to stay away

1:22:01

from him. He's stupid.

1:22:05

Yeah we'll figure it out later. That's a

1:22:07

dumb butt plan. Okay because

1:22:09

you got yourself in a pinch now

1:22:12

you know. It's a mess. You got a mess.

1:22:14

You got a relational mess. You got a legal

1:22:16

mess and you got a real estate mess and

1:22:18

you got two houses under construction. Yes

1:22:22

we do. This is chaos and stress everywhere around

1:22:24

it. Oh my lord what a mess. Yeah

1:22:27

buy her out. That's the cleanest. Okay

1:22:31

so but if you were her

1:22:33

or if you were giving her advice. I

1:22:35

guess I would take the money that and go buy

1:22:37

me something. Like

1:22:40

you would leave? Yeah. Essentially? Yeah.

1:22:43

Okay. Just long-term

1:22:45

considerations. Yeah

1:22:49

because she's in a mess with

1:22:51

her daughter. It's a mess. Who wants

1:22:54

to be in a mess? The

1:22:56

cement. It ain't gonna clean up either. The

1:22:59

only possible thing you can do and I have

1:23:01

no idea if you can pull this off in

1:23:03

Reno, California or not but check

1:23:05

with the city and see if you can subdivide the

1:23:08

parcel and run a lot line between them. Have

1:23:10

two parcels and then you

1:23:13

could just deed her her half and

1:23:17

she owns it. Okay.

1:23:21

And that way you lost some money but you

1:23:23

kind of deserve to. No I

1:23:28

mean that is kind of why like let's let's

1:23:30

think about now because if we have some front

1:23:32

costs we need to just swallow it and move

1:23:34

on. Yeah exactly. Exactly.

1:23:36

Okay. Yeah I'm serious I mean I

1:23:38

don't want to hurt your mom and you don't want

1:23:40

to hurt your mom and you know if

1:23:43

you want if you buy her out and you let

1:23:45

her stay there you're gonna have to have some clear

1:23:47

family relational boundaries as to what the you know you're

1:23:50

just gonna let her live there free the rest of

1:23:52

her life. What's the plan? That's

1:23:54

part of the buyout. I mean you gotta you gotta

1:23:56

lay out the terms of the buyout. See what you

1:23:58

all didn't do is you'd you

1:24:00

violated the begin with the end

1:24:02

in mind principle. And

1:24:04

that means you have to write

1:24:06

out everything and every possible negative

1:24:09

scenario ahead of time and have

1:24:11

exit strategies on everything before you

1:24:13

do the deal. Now instead, you're

1:24:15

trying to unring the bell. And

1:24:20

it's very difficult to do that. And

1:24:22

so without a tearing, without people

1:24:24

being hurt, and you know, because

1:24:26

everybody in the whole thing's got

1:24:28

a bunch of different expectations, right?

1:24:30

What's her, what is she thinking in all of this?

1:24:33

Is she concerned or is it more you guys are concerned on

1:24:35

your end? Honestly,

1:24:38

in the three-sum, it's probably just me because

1:24:40

I'm more of a long-term thinker. They're

1:24:44

all more like, we can figure this out. When?

1:24:47

I think, well, I'm

1:24:49

wanting it done now. Like can we figure this

1:24:51

out? Now when are we, all these people that keep saying, we

1:24:53

can figure this out, when is it they're going to do it

1:24:55

since they didn't do it beforehand? Right. I

1:24:57

hear you. I mean, I'm on the

1:24:59

call, right? Yeah. I'm not, I'm

1:25:02

not, I'm not, I mean, I'm not picking on

1:25:04

you. I'm just saying the decision overall, you're aware

1:25:06

before you called is a mess. And

1:25:09

she's willing to do, I think she

1:25:11

needs to take time to look into

1:25:14

like just retirement planning in general. Yeah.

1:25:16

But her first thought was like, I

1:25:18

need to keep a stake in real

1:25:20

estate. But that wasn't like our thought going

1:25:22

into it, that that was the one to be in her spot.

1:25:26

So I would either subdivide the property and give

1:25:28

her the half she lives on. And

1:25:31

you have to get an, with most cities

1:25:34

and municipalities, you go before the zoning board

1:25:36

and they approve a parcel,

1:25:39

a change in parcel, one parcel into two

1:25:41

dividing it. And it'll have to do with

1:25:43

the zoning in the area. Typically,

1:25:45

you know, you're allowed to have so many square

1:25:48

feet for a single family in that

1:25:50

particular zone. It's an

1:25:52

R5, an R2 or whatever, residential, whatever. And

1:25:57

so then the zoning board will tell you, You

1:25:59

have a. Survey or come out Surveyed. Draw a

1:26:01

lot a new lot line between the two

1:26:04

houses and it was setbacks and everything and

1:26:06

it's all set up with the city and

1:26:08

approved. Boehm than you did it over to

1:26:10

if that is not possible and the zoning

1:26:12

situation you're sitting and then I'd probably sell

1:26:14

the whole property for by her out one

1:26:17

of the to because what you've gotten house

1:26:19

not going to and well on his you

1:26:21

can smell it in the air and that's

1:26:23

why you're calling I'm sorry I'm sorry get

1:26:25

yourself into this but I do. Please clean

1:26:27

it up. This is a Ramsey Show. Say.

1:26:32

Guys, it's Rachel Cruz and I'm beyond

1:26:35

excited to tell you that my new

1:26:37

kids but I'm glad for where I

1:26:39

am is available for preorder and there's

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more. When you preorder you'll have access

1:26:43

to a live event that I'm doing

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from my home. Story time with Rachel

1:26:47

Join me as I read this news

1:26:49

story about gratitude and the guest at

1:26:51

home to you and your kids. Puzzle

1:26:53

do I lived una. So. That

1:26:55

a Ramses looses.com/store and pre

1:26:58

order your copy Today as

1:27:00

Ramsey's Listen sought some sort.

1:27:04

Of this season is in full swing.

1:27:06

We got three big events on the

1:27:08

books right now. The first one is

1:27:11

our big dog. The Total Money make

1:27:13

Over Weekend here on the Ramsey campus.

1:27:15

May tenth and eleventh, Friday evening and

1:27:17

all day Saturday. It's a weekend long

1:27:19

advance and we're gonna have everybody speaking

1:27:21

Rachel of course will be talking. I'll

1:27:24

be talking George Camels, Jade Can is

1:27:26

going to be talking about how to

1:27:28

increase income Dr. Baloney about how increase

1:27:30

your piece huma Leave until somebody so

1:27:32

or everybody's gonna be there. For

1:27:34

all the ramsey personality of them, when

1:27:36

I leave you will have a detailed

1:27:38

plan on not just getting out of

1:27:40

debt but becoming wealthy and we will

1:27:42

have convinced your friend that think you're

1:27:44

crazy it's and when they leave after

1:27:46

coming with you for the weekend they

1:27:48

will also be crazy just like you.

1:27:51

So. you can be every ride on

1:27:53

trap it's a two day event it's the

1:27:55

ultimate motivator to get fired ups and the

1:27:57

live the life you've always wanted were in

1:27:59

nice will make tenth and eleventh great to

1:28:01

visit this town anyway and uh...

1:28:04

it is going to be a fabulous fabulous weekend

1:28:06

is is approaching a cell it's not

1:28:08

sold out but you can still get tickets so

1:28:10

you better get them now because it's only about

1:28:12

a month away right uh...

1:28:15

ramsey solutions.com/events and then uh...

1:28:18

a week and a half later i'm gonna be

1:28:20

doing a two-night event george is going to help

1:28:22

me called dave ramsey's investing essentials where we go

1:28:24

into the basics of investing but we also are

1:28:26

going to go beyond and do something i've never

1:28:28

done and open my personal playbook on what

1:28:31

i'd do with my

1:28:33

personal investments and that

1:28:35

includes a detailed look on the second night

1:28:37

in real on real estate uh...

1:28:40

i don't several hundred million dollars with real estate

1:28:42

how did i do that and

1:28:44

how do i select real estate what do i

1:28:46

do what's the process this is not

1:28:48

a tiktok seminar by some guy who wished he

1:28:50

did it once i've done it a

1:28:52

bunch it's my favorite

1:28:55

thing is a matter of fact so come

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on and join us we'd love to have

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you to virtual event you get your tickets

1:29:01

again at ramsey solutions.com/events and then you guys

1:29:03

are doing this fabulous event it's

1:29:05

uh... may twenty i'm sorry it's october twenty

1:29:07

fourth through the twenty six a

1:29:09

true weekend long event it's a

1:29:12

big event marriage and

1:29:14

money getaway here on campus at the

1:29:16

ramsey event center doctor

1:29:18

john deloni and rachel cruz and this

1:29:21

event man last year people

1:29:23

were completely

1:29:26

changed it was amazing marriages were saved

1:29:29

it's amazing that when you come and i think

1:29:31

with the mindset of like it's a

1:29:33

getaway right you leave your kids you come in the

1:29:35

couple to a fun city like nashville and

1:29:38

just you know in the mindset to like

1:29:40

we want to grow we want to stretch we want

1:29:42

to learn and so all that together and we have

1:29:44

fun john and i it's a fun weekend you and

1:29:46

honor funny that's for sure and our spouses came last

1:29:48

year and did a panel so you never know

1:29:50

how to happen again i know now that's right

1:29:52

so yeah it's a really listen i'll tell you the

1:29:54

truth now it's a really Fun weekend and

1:29:57

we sold out of this as like the top

1:29:59

tier at the event last year like a lot

1:30:01

out before so it's a it's been a quick

1:30:03

sellers. Some extra concert tickets numbers more

1:30:05

grammarly and hardly any left. Only of

1:30:08

the ten October serve. Yeah, Ramsey solutions.com/events

1:30:10

for all three of those and I'm

1:30:12

very proud to present all of those

1:30:14

to you. Today's question comes from Grace

1:30:17

and Colorado. She says I'm a stay

1:30:19

at home mom with two small children and

1:30:21

I'm six months pregnant. My husband died suddenly

1:30:23

last week. He handled all the finances. I

1:30:25

lost touch with that when I got busy

1:30:28

with the kids and aren't know if there's

1:30:30

a well or licensor ants I don't know

1:30:32

the password as his computer. can you direct

1:30:34

me to a checklist of how to get

1:30:36

through this? I want to check the boxes

1:30:38

but. I. Need guidance some not googling.

1:30:41

what to do every night on

1:30:43

C N? O Grace!

1:30:45

So I assume James that

1:30:47

we have Ah Graces. Contact.

1:30:50

Information of course to says obviously not

1:30:53

a you or a radio answer for

1:30:55

something this tragic and yeah, in depth.

1:30:57

So what we will do Grace is

1:30:59

we're gonna hook you up with one

1:31:01

of our Ramsey counsellors coaxes this been

1:31:04

through our training. We're. Gonna pay

1:31:06

for it will cost you a dime. They're going to

1:31:08

meet with you and woke hold your hand and walk

1:31:10

you through every bit of this. Arm

1:31:12

and also connect. She was smart

1:31:14

rest are pro or who can

1:31:16

help guide you through the insurance

1:31:18

issues and Arm. And

1:31:21

A if there's any investing to be

1:31:23

done when all the smoke clears, so

1:31:25

to speak. on. The other

1:31:27

end and in a we can figure out

1:31:29

what we're doing here. but I'm. Ah,

1:31:32

There's ways to discuss their there's there's a

1:31:34

database you can tap into to find out

1:31:36

of life insurance exists. Ah, there's not to

1:31:39

find out about a will, but ah, I'm.

1:31:41

Ah, with the only coach Tim, the

1:31:43

cultural even help you get with a

1:31:45

computer specialist, assuming a distinct and computer

1:31:48

open so. I'm

1:31:50

so sorry, honey, or a horrible. Horrible.

1:31:52

Place to be left and but

1:31:54

I'm you've got friends here and

1:31:56

we will walk with you. We

1:31:58

are on mandated. by the book

1:32:00

we believe in to take care of widows

1:32:03

and orphans and we will.

1:32:06

We will. You can count on that. So

1:32:08

stick... But for people listening,

1:32:10

like when it's a situation like this though for

1:32:12

real, what's the like to even

1:32:15

begin, because in my

1:32:18

head I'm like yeah you go down to like an IT, you know,

1:32:21

company and get your computer. Yeah, first thing we try to do is

1:32:23

get the computer open and hopefully that helps you find a will if

1:32:25

there is one. And

1:32:27

find any... But a life insurance professional

1:32:29

can help you with the database. I can't remember the

1:32:32

name of it off the top of my head, but

1:32:34

there's a search you can do and

1:32:36

it costs like five dollars or something. To be able

1:32:38

to go in and find... See if there's anything showing

1:32:41

up on life insurance. Obviously,

1:32:43

if there's any file drawers or any hard

1:32:45

paper areas, you go through those and try

1:32:47

to find wills and life insurance. Or anything.

1:32:50

Yeah. Depending on the assets

1:32:52

and the debt and so forth, you may need

1:32:54

to contact an attorney and do a probate. You

1:32:56

may not. You may not have left anything. Obviously

1:32:58

we've got to start taking... The primary

1:33:00

thing I hear right here is I've got to figure out

1:33:02

how you're going to eat and feed children. A

1:33:05

pregnant lady is going to feed two

1:33:07

small kids next week. Yeah. Because I

1:33:09

have no idea where money's coming from

1:33:11

at this point. So I need to

1:33:14

assess how much money we've got, where we've got it, how

1:33:16

we can create some money. Contact

1:33:18

local church to come around you. Make sure you've got food. We've

1:33:21

got to do all these things and just put our arms around

1:33:23

you and love you well. There's

1:33:26

so many things here. If

1:33:30

there is family, a lot of these situations,

1:33:33

you end up just selling and going with family. Being with family

1:33:35

for a few things. For

1:33:37

a temporary. Yeah. As a safety net.

1:33:39

Yeah, for a season. Not as a permanent thing, but as

1:33:42

a safety net to get on your feet after this. Google

1:33:45

probably can't help you, hon. I

1:33:48

don't think Mr. Google is going to send much

1:33:50

love your way. So

1:33:54

what this does illustrate though is why it's

1:33:57

so important for couples to handle their money together.

1:34:00

Why it's so important to have a will with

1:34:02

a central location where everyone knows where it is.

1:34:06

In the same place, we call it

1:34:08

a legacy drawer at our house. I've got a file

1:34:10

drawer that's got all the wills and the trusts

1:34:12

and the life insurance and

1:34:15

the car titles and so

1:34:17

forth. All of my passcodes are in a system

1:34:20

on my computer and three

1:34:22

family members, three people know where it is

1:34:24

and they can all open it if

1:34:27

something happens to me. So Sharon's not crapped

1:34:29

out and all the different nine million, we've

1:34:31

all got passwords to everything in the world.

1:34:34

And so you got to be able to access every

1:34:36

bit of that. And so- And it's

1:34:38

even small things of what bills are automated,

1:34:40

which ones are you paying directly, you know

1:34:43

what I mean? That's why you need

1:34:45

to be involved in the process together. You

1:34:47

should always be handling your money together.

1:34:50

And so I've got

1:34:52

a friend in his 70s that just passed and

1:34:54

I'm walking with his wife, one

1:34:56

of our best friends for some 40 or

1:34:59

50 years now. We've

1:35:01

been friends and she's

1:35:04

a very, very smart woman but

1:35:06

was not very involved in the day-to-day. And

1:35:09

so she's having to learn how to do all of that at

1:35:11

70 years old now. And

1:35:13

so you

1:35:16

got to- it's the

1:35:18

only way that it-

1:35:24

it's having life insurance, having a will,

1:35:27

having a game plan, working together is how you say

1:35:29

I love you. Not participating

1:35:32

together is not how you say I love you. That's

1:35:35

not right. And so it

1:35:37

leaves people in the situation that's poorly here. And

1:35:40

I understand. I mean she's pregnant, got two little babies, she

1:35:42

didn't have time to mess with it, she couldn't breathe, she

1:35:44

got- you know, the littles take

1:35:46

everything out of you when you got a

1:35:48

situation like that. But still,

1:35:51

it leaves you so vulnerable and it's

1:35:53

just sad. So we'll be

1:35:55

with you, darling. And you guys out there

1:35:57

can know that Ramsey takes care of

1:35:59

these situations. situations when we run across them. That's for

1:36:01

sure. 100% of the time we have for 35 years

1:36:04

of doing this and we will continue to do

1:36:07

that. Widows

1:36:12

and orphans. This

1:36:15

is the Ramsey Show. Hey

1:36:20

teachers, let's be real. Your influence

1:36:22

on students is massive and during

1:36:24

Financial Literacy Month we're celebrating you

1:36:26

and all your hard work. We

1:36:28

want to send you on a

1:36:31

well deserved vacation. That's right. You've

1:36:34

earned it, heroes. This April you

1:36:36

can enter the Ramsey Teacher Appreciation

1:36:38

Giveaway sponsored by Ramsey Education. One

1:36:41

teacher will win a $5,000

1:36:43

vacation to wherever they want to go and

1:36:45

two more teachers will each win a $3,000

1:36:47

vacation. There's

1:36:49

no purchase necessary to win. The giveaway

1:36:52

ends April 30th so enter now

1:36:54

and if you're a teacher go

1:36:56

to ramseysolutions.com slash teacher.

1:36:59

That's ramseysolutions.com/teacher.

1:37:03

Rachel Cruz, Ramsey Personality is my

1:37:06

co-host today. Hey, there's

1:37:08

always, not always, most days

1:37:10

there's 50 to 200 folks out here

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watching the show in the lobby of

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part of it is the debt free

1:38:11

stage and on the debt free stage

1:38:13

is Miss Katie. Hi Katie how are you? Good how

1:38:15

are you? Better than I deserve where do you live?

1:38:18

I live in Dallas Texas. Very fun and how

1:38:20

much debt have you paid off Katie? I

1:38:27

love it and how long did that take you? Just

1:38:30

under 12 months. Whoa! And

1:38:32

your range of income during that time? I

1:38:34

started out making $29,000 a little more and then

1:38:39

this year it shot up to $113,600. Wow what do you do for a living? I'm

1:38:41

a registered

1:38:45

nurse. So you've been working a lot. Did you

1:38:47

just get out of nursing

1:38:51

school? Yes. That's what started this

1:38:53

whole thing. Yeah. My

1:38:56

debt was entirely just a

1:38:58

student loan from a one-year

1:39:00

nursing program. Oh my goodness. And you

1:39:03

paid off in one year? In one

1:39:05

year. You did it. So you have

1:39:07

lived on beans and rice. Exactly. These

1:39:09

numbers are I mean like you're

1:39:11

the coupon queen you're have

1:39:13

no life all you did was work and pay

1:39:15

debt. I know I'd go bother people for their

1:39:17

shifts or part of their shifts. My favorite was 3 a.m.

1:39:20

to 7 a.m. because

1:39:22

you got your overtime, you got weekend

1:39:24

pay, you got the bonus pay. It

1:39:27

was awesome.

1:39:29

Working around the clock. What kind of nurse are

1:39:31

you? I am a pediatric emergency room

1:39:33

nurse. Oh wow. Well thank

1:39:35

you from a mom of

1:39:38

three little. Yeah. Good for you.

1:39:40

What rewarding work too. Pretty

1:39:42

awesome. And sometimes terrifying but yeah.

1:39:45

Wow look at you. So

1:39:48

what happened a year ago when you got out of

1:39:50

nursing school? Why'd you get so fired up and

1:39:52

how'd you get cut for this Ramsey stuff? So

1:39:55

I was crazy and

1:39:57

decided that was my second college degree.

1:40:00

My first one my parents paid for, shout

1:40:02

out. And

1:40:04

then I just wanted to be a nurse and I wanted

1:40:06

to be a nurse as fast as

1:40:08

possible. And that required taking out

1:40:11

a little bit of money. And

1:40:13

then after I finished nursing school, I

1:40:16

was introduced by my boyfriend, Kyle. He

1:40:20

would just start playing the podcast like when we'd be

1:40:22

in the car. It was super like low key. Like

1:40:25

it was never like, hey, I think you should do this. It

1:40:27

was, oh, hey, we're gonna listen to the- Yeah,

1:40:29

I think background music. And then I got kind

1:40:32

of interested and then it became my

1:40:34

like guilty pleasure after work. I'd go home and

1:40:37

sit in my bed after working night shift. And I'd

1:40:39

put on the show before and I'd work from home.

1:40:41

I worked from home job. So it

1:40:43

was my two jobs. Oh yeah, tons.

1:40:45

I did everything under the moon. Like

1:40:48

I was- I was ready to work.

1:40:51

I knew nursing school like as hard as

1:40:53

everyone says it was, I was ready

1:40:55

to work harder when I got out.

1:40:57

And I think the idea of, oh

1:41:00

my God, I just took out all this money and I'm

1:41:02

gonna have this payment for 20 years was

1:41:05

so scary. So- Very

1:41:08

nice. Good for you. What was the most

1:41:10

lucrative side hustle you did? I

1:41:14

was a big Instacart girl. Okay, okay. That

1:41:16

was, it was really awesome. We live a

1:41:18

little bit north of like the Highland Park area.

1:41:21

And there's lots of people who like their groceries delivered

1:41:23

there. You were there. Katie

1:41:26

helped. But the best thing of

1:41:28

all pay wise was the 3 a.m. to 7 a.m. overtime,

1:41:31

triple time, all that stuff, right? Oh yeah.

1:41:33

I'd work four, five, six days in a

1:41:35

row. Like at one point my manager was like, are

1:41:38

you okay? Let's slow down. Good

1:41:41

for you, Katie. I don't work this much.

1:41:44

And I'm like- I

1:41:46

love it. Way to go. How's it feel to be free?

1:41:49

It's crazy. I would let my

1:41:51

paycheck hit my account. I'd

1:41:54

take care of just my basic four walls. I

1:41:57

lived like I still was in college. I

1:41:59

didn't buy anything. I didn't really

1:42:01

do anything. And

1:42:03

then that same day I drained my account to

1:42:05

Sallie Mae. Mm-hmm. And

1:42:07

a big old chunk could go down every week. Every

1:42:10

month. Yeah. It was

1:42:12

crazy. And then all of a

1:42:14

sudden we got to the end and I was like, what do I do with

1:42:17

all this money? Can I stop working

1:42:19

as hard now? Yeah, that's right. That's right.

1:42:21

Wow. Good for you. Okay,

1:42:23

so what was the hardest part? Because that's a

1:42:25

full year, 12 months of just doing this. Getting

1:42:27

it. I think

1:42:29

the hardest part was

1:42:33

watching everyone else. Just

1:42:36

a lot of my friends at work

1:42:38

would buy new cars or people would

1:42:40

come in with new things. They'd

1:42:42

go out and I was like, oh, that'd

1:42:45

be really fun. But

1:42:48

that's not for me. It's

1:42:50

hard. Not yet. Yeah,

1:42:52

not yet. It was hard. The

1:42:55

hardest part was watching the world

1:42:57

go on while you're stuck in it. So

1:42:59

was that harder at the beginning or the end? I'd

1:43:03

say probably about the middle. Okay. Because

1:43:05

I felt... Beginning you're all fired up. Yeah, I was...

1:43:08

And end you can see the light. Yeah. But

1:43:10

in the middle it's like I'm stuck. Yeah. Yeah.

1:43:13

And it was summerish and everybody was doing all these fun things and I was

1:43:15

like, I got to go pick up another shift. I got to go deliver

1:43:17

some groceries. I got to keep on my crack here. A lot.

1:43:19

Okay, so would you tell people, Katie? Because

1:43:22

a lot of people, their journey of getting out of

1:43:24

debt looks so different. And someone listening that's thinking, okay,

1:43:26

I want to dive in. I want to do this.

1:43:29

Would you recommend if they have the ability, like

1:43:31

you just go full force, short amount of time,

1:43:33

all the pain, but it's short. Or

1:43:36

like you could spread this out for 24 months