Dwelling On Past Mistakes Won't Benefit Your Future Growth

0:00Brought to you by the EveryDollar app, start budgeting for free today. Normalist Broke and Common Sense is weird, so we're here to help you transform your life from the Ramsey Network in the Fairwinds Credit Union Studio. Is the Ramsey Show Triple-8 825-225 is the number to jump in? I'm Ken Coleman alongside the Fabulous, the incomparable Jade Warshaw and we're going to team up. So she'll take lead on the money question. So obviously all the money questions, but how about I'm burned out. I don't have any life balance. We just did a recent survey and found out that that is the two number one issues among professionals and those have financial ramifications. So we'll dive into some of those as well. Come on, come on. Derek in Montana is going to start us off today. Derek, how can we help? Ken, Jade, it's great to be with you guys. Thank you so much for

1:06taking my call. Sure. What's going on today? Well, basically the just of it is I'm trying to find out or figure out if you will. If maybe I should just file bankruptcy and start all over. I kind of got myself into some pickles here. Okay. Give us a picture. What are you facing? So we started a business. My wife and I started a business here local where we're at was going okay and then we decided to try to enact our startup a something for the community and like an arcade and brought in some people to help us out. They had the games. We had the space and so we were putting that together. We encountered some issues with the way things were

2:07operating. So we thought we would branch out and get our own equipment and things just have not turned out to come to fruition. So what have you spent on getting this arcade up and running? So right now we're about 25,000 in debt on just the arcade. Okay. And how long has this, how long have you been in this business venture? Has it been a year, six months? More? We are about a year and nine months. Okay. And what's what's the issue? Is it people just aren't showing up? Is it the prices are too low? But when we raise them, it doesn't work out like what's the problem? Yeah, people just have not showed up. So we were unaware of some of the startup costs from the bank to obtain the debt. And so when we went to go sign the papers, it was by the way, here's some additional fees that need to get paid and instead of going back to

3:13underwrite the additional fees to make sure that we were going to be able to make it happen. I said, I'm sure it'll be fine. I can figure it out. And so that ended up chewing up all of our marketing and advertising budget. And so I kind of started out behind the, behind the ball on it and tried to play catch up the whole time. And it just never happened. How much was the advertising and marketing budget? Like how much did you see yourself spending per month or whatever it was that this debt ate up? About 2,000 initially. Are you in a high traffic area or kind of tucked away where nobody knows where you are? So the space is in a very high traffic area. Okay, I should say. So we closed down the location, moved out the games to a new location. Hopefully that pays off. And then just reducing the overhead. So for the last year, we have just dumped

4:17all of our personal income, my wife's personal income on self-employed. So don't have any. I'll have heard of you to into maintaining and keeping things afloat trying to anyways. Well, you mean when you say her income, you mean any kind of margin that you guys have above all of your personal bills that you're taking the surplus for lack of a better word and you're pouring that into the business? Is that what I'm understanding? Yes. Okay, how much is the equipment worth? The all the games themselves. If I were to sell it right now? Yeah. Probably maybe 10, 12. So half? Yeah, roughly. Can I ask a quick question before we keep going down that trail? Because I do want to keep going down that. Do you honestly now in your heart of hearts after you've seen how this has played out over the last over 12 months? The 2,000, because here's where my mind goes, Kim, if you had a $2,000 a month ad spend or marketing spend and that is now eaten

5:18up in fees that you didn't know we're going to be there. My first intuition would be like, well, there's nobody at the arcade. How can I go out and earn this money elsewhere so that we can get our ad spend up so that we can get people in the doors? Which leads me to ask, do you believe that even if you had spent that 2,000, you wouldn't have been able to get those folks in the doors? That what you're realizing? Or do you just not know? I don't know. I do believe that with the ad spend and being able to put signage on the building and the things that we were not able to do, I can't say that. Well, there's no sign on the building. There's no sign on the building. I couldn't get the signage. Not appropriately. Well, but now we're, but see, I think we're now, I think we're majoring on the miners. I'm just trying to see if there's something here that's salvageable. Yeah, the equipment. Now again, you may have a different take. I'm just sitting here listening. Well, there's no sign on the building. So nobody was going to go up in there. I know but he's in a new location. He's not even in a high traffic location anymore. Correct?

6:19So we put the games in a separate business that has traffic that is separate in and of itself. You know, bowling alley restaurants. So you're renting though. You're renting them to these places? We're doing what is a profit share. So now I'm just getting a cut off of whatever they make. Oh gosh. You can't make a living. You cannot make a living on this. Yes or no? No, that is my hope for this is that we can just make enough to pay the payment for the debt for those games. And that's what I'm bringing back up. I think the question, I want to come back to the question at hand that you asked, should you file bankruptcy? I don't think so. I think you can pay the 25 off. What's your wife earn? What's that? It's not just that 25. What's your total debt amount? 68,000. 68,000? Yes. All right, I'll defer to Jade. You know,

7:22this is not a viable business. So yeah, at this point, if you can get your money back on those machines over time and pay this debt off and then shut it down. But you need a full-time job. I'll just throw that out there. Yeah, I agree with Ken at the 25,000. I'm looking 25,000 in one year. I'm thinking there's something that can be saved here possibly. But now what you've told me with the 68,000, I think that you need to cut your losses here. What's your wife? What's your wife's income? She makes about 75 a year. Okay. Now, this business debt is that your only debt or do you have other, I'll call quote unquote, personal debt to add to the pile. So the arcade is roughly about 25 in debt. I have my other business that I was, that was my main source of income. And because of the issues that we had with the arcade, I kind of took my focus in. Okay, I'm going to cut you off because we're running out of time. If the total of your all debt,

8:25all together is 68,000, like I think that it is, you need to pick up a full-time job yesterday. Take your wife's income and you're going to pay this off as quickly as possible. You're not going out to eat. You're not doing anything. You're selling a car if you need to clear this out very quickly. You know, every year I hear the same excuses for why people don't get the life insurance, they need to protect their families. So this year, let's clear the air and look at the facts. Having 10 to 12 times your income on a 15 or 20 year plan is in many cases just plain cheap. That amount of coverage lets your family keep the lights on and keep food on the table while they're grieving. Second, life insurance through your work is not enough, especially since these

9:30plans go away if you change jobs. You need to have your own policy so you're not without protection when your family really needs it. Third, stay at home parents need life insurance, especially those with young kids. People don't realize how quickly the call sat up without someone at home taking care of things. So no more excuses folks, get the protection your family needs. Go to zander.com or call 800-356-4282. They've been my choice for all my insurance for over 25 years and are the only people I trust. Let's go to Megan who's joining us now at Pittsburgh. Megan, how can we help today? Hi, thanks for having me. Sure. So I have a 401k loan and I'm not sure how to

10:35proceed just given some different options. I just learned that I do have a cash out option. So for example, the 401k is about 30,000. The loan is 15,000 like after all the math and everything. If I were to walk away from it and cash out my 401k, I would walk away with that loan being paid and they would cut me a check for 11,000 dollars. You don't want to do that. I want to make a smart decision. I literally cut you off because I'll let Jade explain why, but you do not want to take this option. Well, number one, you've made a mistake which is okay. We all make mistakes, especially when we don't know better. When you took that loan, pre-retirement, obviously you were hit with a 10% penalty and it's going to affect your income taxes and you unplugged the investment. You unplugged the growth that has been accumulating. Knowing that, let's not turn around and do the same thing again and unplug the rest of the investment

11:35just to get 11,000 dollars back. Let's solve the problem that we made on accident and let's solve it on purpose. So if I were you, the $15,000 loan, I'd just pay it back. I'd pay it back because the thing with 401k loans is obviously they're tied to your employer and if for some reason you are fired, that loan becomes due and it's got a time period on at that point. Sometimes it's a year, sometimes it's more. So that's why I don't like these hanging around and if you knew that, that might be why you're considering this, but I would not unplug the rest of my growth to get out of this faster. I'm sure there's some other fees around that. So let's look at your income and let's look at what we can actually do to get this thing knocked out. So what is your income? 140 household. Okay. And is this 401k loan? I'm guessing it's not your only debt. It sounds like you got up against it. So tell me about your other debts. Yeah. So we do have some consumer debt.

12:40It's due to, it was due to fertility treatments. Okay. So just racked up really quickly and with babies. So that's great. But racked up really quickly. So we have some consumer debt. We're looking at about, so 15k for the 401k loan, about 15k and credit cards that's put in the medical stuff on it. We both have a car payment. Total on the cars is 20. Tell me, bro, can we do it for me? The two. Yeah. We both owe about 10 on each of our cars. Okay. And that's it. Other than that, student loan debt, we're looking at about 800 a month. What's the total balance on that? I think we're at 45 if I recall correctly. Okay. And is that it? Where's there more? That's it. Okay. The 140k is that just you or that's you and your husband combined? Combined. Okay. Yeah. Congratulations on the baby. We've got to get through this. And I think with the

13:47cars, yeah, you're likely it's best to just keep those and knock them out quickly. But I would, you've got the 15,000 on the 401k and 15,000 are the credit cards. Are the credit cards is it one credit card or is it multiples? It's one. Okay. Yeah. I'm going to I would probably I'm thinking about Ramsey verse. And I know that in the Ramsey verse, there's certain things that we move to the top of the list, things like IRS debt. And a 401k loan, I'd probably move that right up there because of the implications on it. If you're in the chats and you disagree with me, you can let me know later. But I'd probably get into that pretty quickly. Do you have any equity on the cars? Yeah, we do. How much equity each car? Yeah, the last list, the last thing we got from Carbana or something. I can go to Kelly blue book later. But my car is worth about 15. There's about 10 left on it. And then and that's why because we were working on the cars first.

14:53We might need to recycle 15 and my Ramona is about 10,000. And then his is it's right about the same right 14 15. And there's about 10 left on it. Yeah. And the reason I asked those those questions is because if we can sell one of the cars, you know, get a hoop D for a short season, I'm with Jade because of the precarious nature of this 401k loan, I would want to put that 15k back in there. I really would. I would probably since you have that since you have 15,000 on the credit cards and 15,000 on the 401k, I kind of view those interchangeable. I mean, technically, you should do smallest to largest. How I don't even want to ask you how stable your job is. But the point is let's just say the point is stable. Okay, great. Then let's do it. I know the answer to the question and not to cut you off there. So if I were to leave the payments would

15:55actually just come with me and not do immediately. So I have vetted some of those questions. Good. So it would just continue on. Right. Which isn't great. But good to know. Yeah, it is good to know. But the the goal here is for you to knock this out as quickly as possible. And that's going to that's going to take some sacrifice on you guys is in 401k loan aside. The debt in total is a problem. And so I'd be looking at ways that you can cut back your income. Have you guys gotten on a budget yet? Yeah, we're in every dollar. Okay, great. What are those car payments? Car payments are his is about 350. We look at my notes and mine is 182. Yeah. Yeah, I'd be looking in there and saying, okay, what's our margin? Since you're in it, do you know off the top of your head, what your margin is? About a thousand a month. Okay. So the way I would look at this is I'd look at a thousand dollars a month and I go, oh my gosh, if I do it like this, it's going to take me five years, right? It's

16:58going to take me forever. So I'd work. I'd reverse engineer that and I do the math on that and say, I want to be done with this in like two years, like no more than two years. And then I would figure out with your husband, how much do we need to pay on this every single month in order for us to be done with the entire amount of debt in two years. And then the equation becomes if it's 20, you know, $2,000 or $2,500, you have to then say, okay, how do we then go get this money? I feel like that's a better way to attack this. That way, everything's on your terms based on it just kind of happening to you. You get to have real skin in the game and make make a plan for what you want to happen and then go on and make that happen. Yeah, absolutely. Fair enough. So that's what I would do and I definitely would not take any of the options that you mentioned earlier that involve you clearing out the remainder of the 401k. Yeah, no, this is very doable. Now it's not going to be fun. And I'm hinting around on the cars. I don't know if you're catching my hints with all these questions. But in you guys are in a pretty rare situation when we get calls where people actually have some

18:02equity. And at this stage of the game, I wonder if it's not worth both of you selling your cars and buying $2,500 cars. If that's the equity situation, if you can pay it off if they're both worth that, that'd be something I would look at because that's going to free up some monthly money. And that gives you that urgency to go, okay, I want to get out of this quickly. So, you know, if you've got equity in the cars and I would double triple check all that and you can get out of there and get to walk away with some cash and pay cash for two cars, that's a, listen, that propels you. And Jay, you can speak to this. That propels you into the intensity that I think you need to have to kind of go, oh, I don't love the fact that we just got rid of. And I know it's an extreme situation. It's, you know what, you get to be extreme as you want to be. And you know, I'll push people towards the extreme because at the end of the day, you're going to get stuff done faster. I was writing an article today for one of these outlets and I was saying how, when Sam and I were getting out of debt, we did three very extreme things, very extreme. We

19:06moved out of our apartment, moved into a townhouse and got roommates. It took our rent from $1,200 a month to $600 a month. We sold off, we were a two car family, we sold one. It was a $34,000 H3, $435 a month payment, freed up $435. And we didn't get a beater. Instead, we just became a one car family. And then we sold off all of the furniture that was part of our rooms to go alone. And instead, we bought an air mattress and slept on that. So very, very extreme. But it's a short term sacrifice for a long term gain. And it's up to you. How, how bad you want to get out of it and how long you want that sacrifice to last. You got to go extreme if you want to get out of it quick, scorched earth.

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21:15for 20% off an annual plan. That's joindeletme.com slash Ramsey. All right, let's get a Providence Rhode Island next. Mary joins us there. Mary, how can we help? Hi, I have a question. So they're putting in low income housing literally across the street from us about 600 feet from our house. We still owe 150 in mortgage, but we got a really good deal on this house like five years ago because it was a direct sale and we knew the folks that were selling it. We have some really, really good neighbors. My husband now just works 10 minutes from the house when he was before commuting about an hour and a half and I have a three-year-old

22:19and a one-year-old and we're planning on having another. So we're just trying to figure out if we should move because if we move anywhere, it's kind of we won't be able to afford it like whatever we get on this house will likely be less and if we stay from what I read, one section eight goes in about the housing market. The area loses about 40% of market value. Yeah, okay. Well, let's take a deep breath. Okay, because I would have all those same concerns that you have, legit concerns, but we have to parcel out the concerns versus the facts and see what the risk is. This is all about mitigating risk, right? What are your neighbors saying? Is anybody else as informed as you are? Are they more informed? What do we know? More informed, some of us like, so we've gone to our town meetings and basically the town voted no, but the state came in and overbrought us and said too bad you have to do it and our neighbor has lived here like they're

23:23in their 60s and they both grew up in the neighborhood so they don't want to leave. What is your house? Everyone in our street. Have you gotten some legit real estate cops? So it's a street similar size to us that was built. So our house was built in 2013 and there's an older house that just built for almost 500 and we bought our house for 430. Okay, but you only owe 150 on it. But we only owe 150. Yeah, we got 150. One other thing I want to address and it's not a back and forth, but I do think it's important in this process to mention that, you know, you said something a few minutes ago that, well, if we move, there's no way we're going to be able to afford to live somewhere else and that's just simply not true. All right, now you may have to move further than you want to, but I do think when you're making decisions like this, you can't be operating in really extreme falsehoods, okay,

24:25because then you'll end up making a decision based on a false narrative. So do you understand what I'm saying and why I'm challenging you on that? Yeah. Because you may, this may be the best option for you guys to move. I don't know that it is yet, but if it is, you can't have this mindset of, well, we're just simply not going to be able to afford to go somewhere else. The state has unfortunately come in and put you guys in a pickle and that stinks, but now we've got to make the best decision moving forward. Right. Do you have any information on how it's going to be like parceled out? Is it going to be a lot of units or is it going to be spread out? So the union's 40 units on like two acres. And it's, they're really contrasting our block like we said the town tried to go with 20, but the soldiers said we need 40 because they don't pay, they don't usually end up paying their rent on time. So they're relying on states.

25:29And federal subsidies. Do you have a real estate pro? Okay. RamsaySolutions.com. What is the actual website? So I give it correctly here. Uh, team's going to help me out. We'll get it to you in just a second. What is it? Okay. I'm not hearing in my ear. Can you hear me? Okay. Realists. So RamsaySolutions.com slash agent. Is that right? Okay. Sorry about that. I just didn't have that in front of me because here's the deal. I want you to get two or three opinions from some very successful real estate pros in your area. I mean, I'd have them out this week. And I'm just going through my checklist, Jay, jump on here, but I'm going, I want some, some pros who've been in your market for a long time and they're crushing it. And I'd get their opinion, multiple opinions, two to three opinions so that now we may realize, we've got a little bit of time or no, we need to get out in front of this and list this house right now. They're going to have a really good idea

26:29of what's going on in your real estate market because the last thing you want to do is put it up for sale, right? That's right. And, and, and, and, you know, this thing drag on, drag on, drag on, and you hurt yourself. Again, I have no idea. And that's why I want to stay real, you know, real careful here about making some type of real strong recommendation on what you should do as to whether you list it right now or not. But if you get some advice from three really good real estate pros and they're all saying the same thing and they're going, I'd get out while they're getting as good, then I would do that and realize that I can reestablish myself and you got a lot of equity in this home. So, you got options. Jay, what, what else would you be thinking? My biggest thing was the concentration of, of development and how much, how much per, like, how many units per block, is it going to be a thing where there's just a couple of single family homes or is it really going to be a high concentration? Obviously, a higher concentration could soften the market for you over time. So, that's, that's the thing that I was worried about.

27:33So, I'm with Ken. I would get with somebody that's a professional specifically in your area that can give you more concrete information on what they believe the timeline, the best timeline would be. Yeah, absolutely. Sorry that's happening to you. Let's go to Vince now in Denver, Colorado. Vince, how can we help today? Hey, Ken, Jay, thanks for taking my call. Sure. So, I was wondering if it's okay for me to make a career now. I'm married. I have three kids currently in law enforcement making about $97,000 a year and I want to become a tournament lineman. Their starting pay is probably going to be about 50 to 60,000 dollars per year. But after the four year apprenticeship program, it's like 230,000 plus. Man, I love that. So, you're locked in for four years at 50 to 60. So, there's different steps within that four years. So, there's step one, step two all the way up to seven. Once you get seven, then you top out. And there's a 5% increment starting from 60% pay,

28:3570% pay of the whatever the annual rate is. But I got confused somehow. So, for four years, give me your pay year one. If you make this move, you're making 97 now in law enforcement, year one, you're making what as a journeyman? Well, as it'll be an apprentice, I'm making about 50 to 60,000. Okay, year two. Then it bumps up to about 70 to 80. And then probably 80 to 90. And then two. So, I'm so full with 30 every year, you get a $10,000 bond. Do you guys have any debt? No. So, we only have our mortgage. That one is we have $343,000 left. We just recast it to lower our expenses. What's your monthly payment? About 2075. What kind of margin do you guys have in your budget after all the bills are paid right now? Currently, right now, after everything is paid,

29:39we have about anywhere from 35 to $4,000 in margin. Okay, fantastic. And I'm assuming before you made this phone call, you ran the numbers on this new pay and what that would look like. And you guys going to be struggling. I mean, as it is stressful or is there going to be enough margin where we're relaxed because we can prepare, we've prepared for this. It'll, it'll definitely be a little tight the first year. The problem is I don't know how long and so you have to apply to become an apprentice and that can take anywhere from eight to 12 months. Great. That gives you that gives you eight to 12 months to stack up even more cash. What's your emergency fund right now? What's the actual amount in it? We have $36,000 in our emergency fund. Okay, so let's play this out. Let's say it takes eight to 10 months before we even find out. If you start doubling down and put more money in there, you could have a really fat emergency fund that would give you a ton of margin and sleep well

30:41in that first year. True or false? True. And your wife could do some things if she had to to make a little extra money. True or false? True. Would it be worth it all to make 230,000 and have that as your trade in the end? True or false? I'm telling you, I'm doing it. If I'm you, I'm doing it. But we prepare for it and it looks like you got eight to 10 months to prepare for it and your wife can come alongside and help. I think this is an absolute no-brainer. We step forward, set back where I'd rather to step forward. After the holidays, a lot of people start feeling budget pressure and it's a wake-up call to get intentional. So listen, don't fall for buy now, pay later, cell phone plans that drag you back into that. Boost mobile keeps it simple with no contracts and no nonsense. Keep the phone you

31:45already own and pay just 25 bucks a month forever for unlimited data, talk and text. That's real, long-term value and real peace of mind. So budget like you mean it and go to boostmobile.com Slice Ramsey today to make the switch. That's boostmobile.com Slice Ramsey. Restrictions apply. See boostmobile.com Slice Ramsey for details. Hey, if you're working the baby steps the best and fastest way to do it is by using every dollar, it's not just a budgeting app. It's great at budgeting but it is so much more. It's the full plan. All the baby steps built in. It's like having Jade or myself or any of the Ramsey personnel including Dave with you inside this app. Total guidance, tons of great contents,

32:51contract your progress, get personalized recommendations for you and coaching that will help you free up more money. And I'm telling you, it's phenomenal. All these new bells and whistles. It's like having one of us with you in the app. Start every dollar for free today by downloading it in the app store or Google Play. Let's get right back to our call. Zach is joining us now in Los Angeles. Zach how can we help? I'm 22 years old and I have about $25,000 in debt. I'm currently on baby step two. I'm trying to figure out the best way to tackle all the debt that I'm in. Listed out for us. What is in your debt snowball? Currently it's about $600 in credit cards. $1400 on a personal loan and then the rest is a car loan that I'm handling. What do you mean by handling? I'm trying to figure out the best way to get the car off my hands because I know you guys don't believe in car payments and I'm slowly realizing

33:55that it's strangling me. What kind of car is it? It's a 2021 Toyota Corolla. What's it worth? I've had different evaluations. The dealer I bought it from, they offered me $16,000 and then a dealer probably 10 miles away from me offered me $17,000. Okay, so that means private sale. You probably could break even on it now. Is it $23,000? Is that what you owe? I owe like $22,000. Okay, even better. Private sale I've seen. I've been offered about $19,000 for it. Okay. How much do you earn? What's your income? It ranges. I work retail so it can be anywhere between like a thousand to twelve hundred every two weeks. What do you mean retail? What is that specifically? What are you doing? I work for Verizon inside of a Best Buy. Okay, do you have a degree in anything? I'm currently in school trying to get my associates in business. Okay, I gotta tell you

34:59that if I'm how old are you again? 22. 22? If I'm a 22 year old and I have this debt, I'm actually gonna just work like a maniac and maybe get a much better job and then I'm gonna get a better second job and then I'm gonna look for any kind of crazy projects on Craigslist or somebody in LA needs me to come move them or something like this. I'm making money hand over fist because this is very doable for you. You just have the $600 in credit card that you could knock that out by selling something you got right now and then you got the $1,400 personal loan and the rest is the car. So the truth of the matter is I don't know that you have to sell this car. You could pay this car off if you got really intense. You're just not making enough money. I don't know how you're surviving quite frankly in Los Angeles making $2,400 a month. Are you getting ready to go to school? Are you getting ready? Are you trying to save up your time to go to school or go get some sort of a certification? Why is it that you're working retail right now and not getting more hours?

36:02Are you in college? Yeah. I'm currently taking six classes in college. I missed that part. I'd press pause on those right now too. Oh no. I have a different take on this. I mean, you could totally do what Ken is saying. If I were in your shoes, I mean, you make $24,000 a year driving a $23,000 car and you're in Los Angeles, you're in school. I would get out of that car almost like two miles for that too. And I would get you a little clunker. I'd spend $3,000 and get a little beater. I'd save that up right quick as quickly as you can. And I would do that. You don't need, in my opinion, you don't need this car in your life right now and you certainly don't need it around your neck. And once you do that, you can quickly pay off the credit cards and the personal one. But the biggest thing of this Ken is I hope that you've learned your lesson that that debt is not the way you want it to go forward moving forward after this. Yeah, definitely. I've figured out like one of two ways to go about it. There's this like ride sharing app called Turo where basically people will pay you to rent out your car and I think

37:05I can make the car payments doing that. No, you don't have to listen because you're running a business value. You don't have a time for that. No, you need more money. I'm actually with Jade. You need to do both. You need to get more money and you need to offload this car. You need more money because you're your financial problem. Yes, you made a bad move on the car. You acknowledge it. We've stated that. You need more money. And right now, you spending any time in a community college for six hours of an associate's degree. I will tell you right now that this will freak a lot of people out. I really don't care. That is the worst thing you can do with your time right now. The amount of time you're spending on those classes, you need to be working and then get out of this debt and then we can start to cashflow our way through community college. Those classes are going to be there for you. But there is, you've heard the old phrase, time is money, I hope. Have you ever heard that? Yeah. Bro, you need to be working. And I'm with Jade. You can get out of this car, but I want to understand what she's what she suggested here. You literally are going to

38:09be upside down. You're still going to have to pay off that loan, whatever's left. And then you got to figure around how to get around out of town and all that kind of stuff. So the best thing you can do right now is just buckle down and realize that you could pay this debt off by making a lot more money. And I got to believe a guy who's willing. There's a way to make money in L.A. True or false? 100%. Well, let's go. My dad's something about schooling. So I, um, I currently work like 40 hours a week, but I'm taking all my classes online. So I'm like, I started the semester on Monday and I'm already two month ahead on all my assignments because I just sat down and I'm not going to die on that hill. But I'm making a bigger point that right now with a guy who doesn't have a professional plan and we're just taking six hours. You know, I'm all for again, extreme momentum to start something. But you could stay in the online class. That's costing you money. How much? Yeah. How much does it cost you? I'm doing financial aid. So I literally paid $40 for six classes. Okay. Fine. Listen,

39:10the advisory remains the same. Ken is right. You need money. Money is the magical elixir for this problem. And then, yeah, in my opinion, it would be who you to go ahead and move this car and drive something, spend $5,000, $3,000 is to get from upside down to other 2,000 is to get a beater. And then from there, that frees you up to think, okay, what, what am I doing? Because what are you doing with this community college degree? What's, what's the path? I'm trying to get into like finance or hopefully, if I could figure out some sort of path to go on, maybe create my own business. Okay. I'll tell you what I'm going to do. I'm going to give you as my gift. Find the work you're wired to do. It's got to get clear assessment in it. And this is about 20 minutes. I want you to take the assessment. Will you do it? Sure. And it's going to spit out a lot of great stuff. It's got an AI component to it. It'll give you potential pass and suggestions. But you need to get more clarity on what my long term could be so that it's not about giving a snappy

40:12answer. But the way you answer that tells you you need more clarity. And the more clarity you have, the more confidence you'll have in every area of your life. But right now, and again, I'm going to give you that gift. So hang on the line. But right now, I'm telling you, it is all about cleaning up this mess. And Jade's right, you didn't need the car, clean up the car, the rest of this stuff is easy. But what will solve your problems as a guy who's trying to figure out his direction in LA is margin. And you know, Jade, I don't know that I love being in the big city. I love being young and all that. But at this stage, it's like, we need more young people in these large cities going, I'll figure out the 15 and the 20 and the 30 year plan. Right now while I'm here learning and bouncing around people, I don't need a lot of social time. I need hustle time to learn how to the social time will come. But we got a lot of young people. I'm not saying he's the guy. They get out these big cities or whatever. And they're just kind of bouncing around. And

41:12it's like, no, no, no, get up early. Stay late. Yes. Hustle, hustle, hustle. Let's clean up our financial situation. Walk around the clock. You don't have a family to come home to. No, you don't have it. That's part of the grind. Yes. Yes. Yes. You know, not let's just let's go live in the big city and experience. Well, you got to be there for a reason. What's the point to network to find connections to get in the air? Yes. Simultaneously. Goodness gracious. Let's go. That's $1,200 every two weeks in L.A. That's thanks. That's less than ramen. If you're waking up tired every morning, you don't need more caffeine. You need better rest.

42:21And that's why Casper mattresses are engineered to help you sleep deeper and wake up refreshed. And this isn't just one Georgia's opinion. Thousands of five star reviews prove it. Plus, Casper mattresses ship free and come with a hundred night trial. So you've got nothing to lose. Sleep is a must and you deserve the best. So go to Casper.com slash Ramsey and use promo code Ramsey for 25% off mattresses and 10% off everything else. That gives you up to $1,200 off the snowmax mattress, which is the exact one I sleep on every night. That's Casper.com slash Ramsey code Ramsey. Exclusion Supply Welcome back to the Ramsey show in the Fairwinds credit union studios. Alongside Jade Worshaw, I'm Ken Coleman. Excited to have you with us. Triple eight 825-225 is the phone number Ilvaro is going to join us now in Houston, Texas.

43:24How can we help today? Hi guys. Thank you for taking my call. Sure. So I have a family member that owes me money and my question is how can I make her start paying me? We have a good relationship and I, you know, I don't want this to be something bad in between us. Who's the family member? I just stand in law. You're sister-in-law. And you've got to, and she borrowed the money or your brother did. Brother? No, no, I get her the money. It's your sister-in-law. So is it your wife's sister? Is that who it is? I'm sorry, I jumped. I made too many conclusions. That's what threw you off. I apologize. So how much money are we talking about? 14,000. 14,000. And how did the request come in?

44:32Did it come in through your wife or did, like, how did this happen? Tell me more about how it transpired. Right. So my wife, her sister, she passed. And so a few months later, we were working on a venue for events all together, everybody, because the whole family. And so she made money for the something for the venue. And I talked to her, say, I'm going to give you the money. And, well, I did hear the money. And that has been, like, quite eight years ago or so. When you say it and you were working on any event with your families, is this a business? Is this a family business? Yes. Okay. And so you loaned her personal money to, this is an interesting thing. So you're working on an event for a family. But what was the 14,000 for? Was it?

45:35It was for rent. Oh, wait, wait, wait, let's start a month or so. Rent for the business or rent for her personal. Yes. No, for the business or the venue. Okay. Is the business still viable? No. Ah, so the business failed. Correct. And it was her business or it was you all's family business. So I was not too involved because I had my, my only job, my own thing. And it was my wife, we had her and the other sister, her brother. So basically, everybody on her side. Understood. And this is eight years old now. And you're calling us and you're asking us. What advice we should give you about getting your money back from your wife's sister. That's taken eight years. And I'm sure we've talked about it in the eight years time. Yes.

46:36We've talked about this. Yes, yes. I don't know. I got any advice. I got to tell you, you're between a rock and a hard place, my friend. Yeah, I don't think it's happening. Plus, it was a business that your, your wife was part of. So it's almost like, well, it's almost like your wife's dead. If she was part of the business and the money was used to pay the business rent, I want to know what your wife thinks about this debt. Uh-huh. No, she passed. So she, you're so sorry. I missed it. Your wife passed. Right, right. My wife, her sister, yeah, my wife. So I am so sorry, my friend. We did not catch that detail. Did you? Okay, I am so sorry. So your wife is no longer with, okay, I am so sorry. Good heavens. And so that's why in order to make the business happen, she came to me and I say, okay, I'll help you. You're grieving too. So let's, let's do this together. And I get her the

47:42$14,000. And then, um, three years later, four years later, her husband passed. Oh, no. And so I, I learned her good. I helped her again. I said, okay, let's talk about the debt next year. I'm going to give you some time to grieve and to, um, you know, uh, get on your feet, all that. And yeah. So this is it right here now. So what happens? There, there's part of me that I'm with Ken. I think you're never going to get this back. But I just want to know when you mention it to her, what does she say? Yes, yes. I'm working on it. Give me some time. I won't get to a job, you know, are you asking for, are you asking for a lump sum or are you asking for what are you asking for from her? No, just a opinion plan. I, one time I sat down with her and I talked to her about that.

48:45Hey, this is something that I had in my mind, um, gave me at least a thousand dollars per year. And we're not even talking about interest here. So you're kind of like, folks call in here all the time and they have a debt that they weren't able to pay and it goes to collections and it goes to collections because, you know, the vendor basically realizes we're not going to get anything and it's not worth our time. Collections will get whatever they can get for it and they charge it off whatever. That's you right now. The likelihood of you getting this money is very, very, very slim. So your choices are you could try to make a deal literally and say, you know, give me what you have and we'll call it clear like you would with a collections agency. You could try that or you could just say, you know what, this woman lost her sister. She lost her husband. She doesn't have any money and you could just let it go. But either way between those two, I can tell you number three,

49:46you're not getting $14,000 from her. Not in lump sum. And I would, I'm with you. I think it's a long shot. I'm sitting here going, okay, all right, I want to do my best here to serve him. I'm going, what would I do? And I think I would sit down and go, look, I know it's been tough for you. I had my own loss in this deal. I helped you out of the goodness of my heart. But gosh, this is eating away at me. And can we make some kind of like consistent commitment to do something so, do you have any you can sell the problem is she probably needs the money. But I would at least go, do you have something you can sell? Can we work together on this or else I'm going to have to write this off emotionally? I think it's something to do. I don't think a payment plan is that feels weird. The truth is it's just as much your mistake as it is hers because borrowing money between family members is a mistake. It's, it is not, it's not a good move. So it wasn't a good move on your part to do that. And it's not a good move on her part to not pay the money. She said she would pay back. So it's just a rock in a hard place. I'm sorry. That are you in financial trouble?

50:52It can help. Not, not too bad. No. Okay. Well, let me, let me say this because we're winding up our time here. But the reason I asked that question is is that's the also the switch that needs to happen. You need to now take this 14,000 and go this is not going to solve my problem. That's going to be gravy if and when I get any of it. So now we change our life. Evara, you've got to take control of your situation and make it better. You can't rely on this 14 coming in to make the day better at all. In fact, I would just, this is a tough situation. What's a lot of money? It's a lot of money, but you got to move on from it because it's maybe very hard to get back. So sorry. You're in the situation. The moral of the story is what in a bumper sticker? Don't loan people money.

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52:56for no extra cost. You can't feel lighter without leaving behind what's been weighing you down. Go to BetterHelp.com slash Ramsey to get 10% off your first month. That's BetterHelp, H-E-L-P dot com slash Ramsey. All right, let's go to Marley and Phoenix, Arizona. Marley, how can we help? Hey guys, so I am a woman in my 40 and I already had some assets and investments in place before starting to prioritize eating debt free. Like over the years, I've built like a comfortable, stable life. I don't make a ton of money, but I make good financial decisions overall. I'm really proud of where I am, but I keep hitting the same issue where I get into a relationship and for me,

54:04marriage is not on the table. I don't want to be married, but I also don't want to be alone. Tell me, wait a second. All right, we need at least a few seconds on this deal. You want a relationship, but you don't want to get married. What's the what's the barrier there? I watched my mom and my dad and my, they are wonderful people. My dad was a good provider, but it made me unable to trust anyone else with my financial well-being. Like, I always need to take care of that for me. I need to have autonomy for that. Did someone do you? So I just, I don't see in my life being able to put my financial well-being in someone else's. Is that because of how your dad treated your mom? He didn't give her a lot of equality and equity. He was a good provider. They had a decent relationship for what they were taught in there. But you came out of that and said, but because of that, you use that as the context to say, as a result, I don't ever want to

55:07rely on a husband for financial safety. Correct. Correct. I am going to be independent and take care of myself and then, you know, build that life. But you want a relationship. Monogamous long-term relationship. So what you're looking for is companionship. That's what you're looking for. Right. And you have two opinions about that. Well, how's that working out? I mean, it always works out well for a while. How long? And it eventually go one way for me. Well, I don't know. Well, that's all you're going to get. I mean, you have to, here's the thing. I'm just going to shoot you straight as your friend. If you say to somebody, I want companionship from you. There's no commitment there. And so that person has the ability to say, yeah, I'll hang with you as long as this works out for me. And then when it no longer works out for me, they can, they can cut your loose. That's what you're giving them permission to do.

56:10So you kind of have to know that if that's what you want to do, you probably every five, six years or maybe you might get a decade out of somebody. Well, you're going to want to know. Switching over to somebody else. And I'm okay with that. Oh, you are. If I am clear about what's on the table and they don't believe me, which I can't find it the case, they think, oh, I'll change your mind. Sure. Sure. Sure. I don't have children. Everybody always said, oh, she'll change her mind. That's what. So you're sad. You're breaking up with these guys. And they're sad. You feel like you're a heartbreaker. And you're like, why am I a heartbreaker? I told you this from the beginning. I just feel like I was clear about my expectations. And eventually, they either, the only time that I feel I need to end the relationship, like if it is financially oriented, is when they say, either you give me access to your account, so I can't be with you. And I say, okay, then we're not together. How many times is this? How many times does this happen where you have broken off a

57:11relationship because the guy wanted to get married? Uh, two. And how old are you, if I may ask? I'm in my 40s. You're in your 40s. And has it been really heartbreaking? Any of these? Have they been gut-wrenchingly hard, even though you stuck to your principal? I'll give you that. Has it been really hard on you? I mean, there's obviously emotional stress, but when I look back on it, it's not a level of regret that I feel like, oh, I missed out on something good because of it. All right. So what's your question? Yeah. What's the question? Because my thing is like, I'll meet you where you're at. If you're like, I never want to get married fine. At this point, I think it's just setting proper expectations in no way. I have a suggestion later that I want you to consider, Marley, but I don't want to get in way of what you called for. What did you call for? Well, what is the appropriate structure? Because I know the whole landscape thing is that when you're married, you're one. Yeah. If you're not married, if you're not married, don't combine it.

58:13Exactly. And so what is an appropriate way to execute God? And you know what? You're dating. You have to view everybody as somebody you're dating. Which is, my money is mine. I do whatever my plan is. I do my own thing. And I'm with them as long as they'll be with me until they want to get married. And I don't. And then they'll exit the scene. And I will. Are you talking about like day-to-day expenses? Yeah. Because I tried to. You're roommates. Yeah. It sounds to me like you're, can I say this? You're roommates. And you got some type of privileges. That's between you and whoever. But you're roommates. So that means you're splitting utilities. You're splitting the rent. I mean, that's what we would suggest because you're not married. And by the way, that's what you want anyway. Sounds like you don't want anybody to weigh in on your finances. Or contribute. Or contribute. I guess we need to be back out.

59:13Perhaps it's more of a backing out of the romantic part of the relationship. And just saying like knowing that the romantic part does have some like you want to be there. You want to be equitable. Like you don't want to be having anybody feel like they're being taken advantage of. Well, here I am. I'm so confused. Well, here's the thing. The hard part is the hard part is foundationally. I see it differently because if you have love for someone at a certain level, especially at an intimate level, then you're wanting that intimacy to take place in other areas of the relationship as well. But you have blocks there. So there is I'm just saying this again as your buddy. There is going to be because of the way love works. There is going to be some dysfunction there with you having those barricades there. And wanting basically to have everything a marriage has, but not having the marriage. It's like I want all the benefits of this, but I don't want any of the risk of it. And that I think that's what you're struggling with. And I'm

1:00:13going to tell you that's going to cause you issues. And it's going to cause confusion. And like you said, to quote you emotional strife because you're trying to execute, you're trying to have your cake and eat it too. And it seems like you have a really good reason in your head for that. But I think that you're letting that reason become an excuse for you to really get the most out of this. I said it before that I wasn't going to try to convince you else wise. And I'm not. But I would suggest you maybe getting to the bottom of that because to your point, you've seen relationships not work out well. But I guarantee you you've seen them, you have seen them work out well. So you know it can go either way and you have to ask yourself, what was the factor in that? What caused a relationship to go well or not go well? And is there any piece of control that you can have over that? I think yes. I think that marriages are successful every single day. And so there's part of that that there could be more education or learning to go on that that could help you. You got to redefine, you got to redefine control. Marley, I thought I was going to hear something

1:01:18far more traumatic. Maybe you didn't want to share it. Don't need you to share it. Right. Something you witnessed has created a massive, massive hole of trust in your life. You just don't trust anybody. Not criticizing you here. You called in. I'm making a little quick analysis here to say that there is no way to structure these relationships with romance and then a lack of trust around finance. You just can't do it. And what's going to happen, Marley? And you said you're okay with it and you've signed up for it. Here was my suggestion. If you haven't done it before, I would get a really good therapist. And I would sit with a therapist long enough and you got the money to do it. And I would dive into this to see if the therapist can help you get to the bottom of this lack of trust and then help you with tools to be able to deal with this trust. Because I think in the end, if you give it a shot for those of us, I've been married almost 28 years. So I'm not I'm not selling something that I don't believe in. I just think that you can have that relationship

1:02:21that you long for and coexist with finances. But not until you can see the source of your lack of this, a lack of trust. And I see that. I feel that. I hate that for you. But I would give it a shot. I'd kick the tires since you've been to so many relationships and they haven't worked out. Some to your detriment romantically and emotionally. Give it a shot. Like get to the source of this before we jump back into another relationship. And I think it's worth it in the long run. If debt collectors won't stop calling and you feel like you're drowning, you don't need another

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1:04:23All right, Jade, I know you're paying attention to this stuff. We talk about this stuff from time to time. Affordability. Probably the issue in America today, right? Whether you're on TikTok, Instagram, CNN, Fox News, whichever side of the ideological aisle or political aisle, everybody's talking about affordability. And so I'm holding my hands here, a Yahoo article. Trump is weighing in on all this stuff as well as the president. And the latest headline, President Trump instructs government to buy $200 billion in mortgage bonds in a bid to make homes more affordable. And so here's the idea. If the government purchases $200 billion in mortgage bonds, Trump is vowing that this will drive rates down and make the cost of owning a home more affordable.

1:05:27That's his quote. And he's saying it's one of the many steps in restoring affordability, something that the Biden administration refused to do, whatever, whatever, whatever. I bring that up to say, Dave and I were on the air. I believe last week we were talking about one move that we did like is Trump somehow pushing or help influencing legislation or if through an executive order, it can be done, not allowing corporations to come in and buy houses. Yeah, I think that would be wonderful. We love that. This one, whether I agree with or not, is a very interesting thing and explain at least the math behind it, whether or not it's true, whether or not he can do it. It is interesting that people understand because what we want to do is range these solutions, we want to come when we can alongside potential public policy or existing public policy or new public policy go, here's how this affects you. So if, in fact, what he's saying, if the federal government's $200 billion, explain why he thinks that that will work, what the math is on that.

1:06:31Yeah, so obviously this is not the first time something like this has happened. We saw it in COVID to, to an extent, but basically think about it when you buy a mortgage bond. Mortgage bonds are simply a bunch of mortgages rolled into one investment vehicle. So if I, if I buy a house, can you buy a house? Technically, the lender doesn't own it and investors have bought that off and the reason that that happens is because when investors buy these mortgage bonds and it frees up the lenders to have more money to lend out again. So it creates a cycle there. So when these bonds are bought up, obviously, if you infuse that market with $200 billion and you're buying up $200 billion of bonds, you're creating a very, very high demand for bonds. Obviously the higher the demand, the higher the price bracket goes for those. And as the price goes down, then because this is an in-demand item, people are willing to receive less in order to get it. When I say receive less, I'm talking about interest. So when those interest rates go down, housing interest rates go

1:07:33down. So that's how it's connected. So the thought is, hey, if we can go in here and kind of whether you believe this is artificial or not, artificially buy up all of these bonds, that's going to create the ability for interest rates to go down. So that's kind of the idea around it, whether you agree with it or not, whether you do it quickly or slowly, that's part of this is, hey, if we do this too quickly, could it really mess with rates and could we see things plummet too quickly and it cause a whole set of other problems? It looks like whether they continue it or not, I think they've already started Ken and they've done like two or three billion of the 200 billion. And so maybe if they do this kind of slower and over time, we might see interest rates tick down. So whether you agree with it or not, that's up to you, but just understanding it, I think is the first part of it. I think a lot of times headlines like this, they see the president's name and they see a big number and they go, that's good. Or I hate it. Or I hate it. But really understanding it is a great place to start. And let me just add briefly to this, understand that even if this work to work the way that the

1:08:38president wants it to work and we see interest rates come down, when interest rates come down, you watch interest rates on homes, mortgages drop. Let's just call it significantly, Jade. What happens next? People who've been on the sidelines get in, demand goes up. What happens when demand goes up, Jade? When demand goes up, those prices go up. So while the cost of borrowing might go down, the cost of a house goes up. So I say all of that not to say you're doomed. No, but to say that what we say here at Ramsey is there's never, you know, it's always a good time to buy if you can afford. Right. That's the best time to buy. There's no waiting for the circus to be right because we're sitting in a situation now where everybody's going about housing. Well, I got news for you. Housing's going up if rates go down because of the demand. We just explain that. So here's the point. Even with the 15 year, we saw it dip last week. All of these trends again, just pay attention to this only by if you're financially ready. And that means to

1:09:41make sure that your mortgage payment is no more than 25% of your take home pay on a 15 year fixed rate conventional loan. And you need to know that buying a house in your budget's possible if you have the right real estate Ramsey trusted real estate agent. So find yours at Ramsey Solutions.com slash agents Ramsey Solutions.com slash agents don't get stuck just trying to ride the roller coaster of trends. It never works that simply. Linwood is up next in Montgomery, Alabama. Linwood, how can we help? Hi, Ken. Hi, Jay. Thank you so much for taking my call. Well, that yahoo article is a perfect segue into my question. So super simple and active duty. Thought to buy a house in March. My wife and I is our first home. I just kind of on the fence if I should use a conventional loan or a VA loan. Yeah, that article came out and I called my loan officer. And basically the difference I'm

1:10:42looking at is a conventional what I'm what I'm quoted is about $1,200 and $4 per month. And with the VA loan at the the ATYNAPR it would be about $1,160 per month. So $44 per month is different. About $528 per year. And I'll tell you why I'm on the fence. I once again first time owning a home. I'm not too fond of the escrow. I'm I'm new to all this real estate stuff. And when I actually understood what escrow was, I was a little bit confused on I'm going to give the bank more of my money to pay my bills for me when I feel I'm competent enough to pay my bills myself. I already do it with my car insurance, my phone, my gym membership, whatever. I can pay all my own bills. So with the VA loan, I won't be able to bypass escrow. My loan officer is telling me

1:11:44I can bypass the escrow with the conventional loan. So I'm I'm wanting the conventional for the liberty of not having escrow, but I'm on the fence because I have a better rate with the VA but I will have the escrow. That is a lot. Okay, and I'm thinking through it. I'm I'll be honest, I'm not a specialist on either of these. I feel like you would have to have the number. I would have to be able to compare it to something else. I yeah, in me, for me, I'm thinking about the fact that usually we don't recommend VA loans because of the fees that are that are associated. I don't know if the numbers that you've gotten have accounted for that or not. I know that if you're we're exempt because of disability, those fees go away. I don't know if that's the case for you. So there's some things in here that I honestly don't have the information to tell you fully. What's the difference in rates? The difference in rates, I don't have the best credit because

1:12:47I've been to Davis my whole life. I don't have a borrow money. Okay. So the difference in rates, the conventional six percent and the VA is five six five. And I guess to make my question more simple, I'm sorry, I was so complicated. It's okay. I just I cannot get behind escrow. Am I am I too weird? Am I am I too? I think it's the wrong thing to be hung up on. I think so too. Are you currently active? You're currently active duty, correct? Yes, sir. Okay. And are you moving around from base to base? Like what do you anticipate the next five, six years looking like as far as you're moving around? I will probably move from where I'm at right now in December of 2027. And then this house will be a rental. No, don't do it. We get this call all the time for military men and women. First of all, thank you for your service. You're a great American, but let me tell you what we tell them. If you're in the military and you're moving every two years, the house becomes a massive headache at times. And so flipping that all the time

1:13:50with you going overseas, your current situation, I would not get into the landlord business, certainly when I'm overseas. So I would sit tight, see what the overseas trip looks like and what that's going to determine before I buy a home. I just wouldn't jump in right now and buy a home. Yeah, the escrow is not part of the discussion by the way. Yeah, that didn't even matter. Just don't buy a home right now with you moving around so much. Running a business is already complicated. You don't have time to become a health insurance expert too. And when you're self-employed, there's no HR department to lean on. But that's where my friends at Health Trust Financial come in. For over 20 years, they've been helping families and small business owners cut through the confusion and find the right health insurance plan for their stage of life and budget. Health Trust Financial offers unbiased advice and there's

1:14:51never any pressure. Health Trust Financial helps you shop smarter and avoid overspending. Most of their clients save hundreds of dollars every month. Real savings you can put back into your business toward building wealth. I've worked with them for over two decades and they're the only Ramsey trusted health insurance advisors. So get clear on your options and talk to a real person who can help you make confident decisions about your health coverage. Go to healthtrustfinancial.com today that's healthtrustfinancial.com All right, let's go to Megan and I think this is, oh, this one always gets me. Hold on, this

1:15:55is really fun. I'm going to say it is Lima. Is it Lima? Oh, hi, is it Lima or Lima? What is it? Is it Lima? Oh my gosh. Okay, great. I was gone with the Peru Peruvian. By the way, sorry to the team and the controller and they were like, is Ken's meds wearing off? Is he melting down right now? I was trying Megan so hard. I know. No, it's okay. We like the laugh here. Lima. Okay, great. I like to be phonetically strong. Well, in Peru, it's Lima, but I guess it's in Ohio. It's Lima. Yeah. All right, Megan. We have a Rushi in Ohio, but it smells like Russia. And they call it Rushi? Yeah. Well, how about this? When I lived in Kansas, there is a city that was spelled like Arkansas city and it was called Arcanzus. Oh, that's so irritating. It was called Arcanzus city. Let me give you one here in Tennessee and I think they do this in Georgia as well. It's Lafayette, the legendary French general who France loaned to America. And as a result, he was a hero. And

1:17:01there are Lafayettes, towns and counties all over America, except for in Tennessee and Georgia, they call it Lafayette. It's hurtful. Somebody punched me right in the neck. Well, nothing hurts more than Murphy's burrow. Murphy? Not Murphy? Sorry. Megan, we're getting all. We're going off the rails. Megan, so sorry. We're really, it's like group therapy with you. This is very exciting. How can we help you today? My parents are in their late 60s and they have done nothing to prepare for retirement. They say they're just going to work until they die because they just see no point ever slowing down to the point that they don't have any documentation like their will is from before I was born and I'm in my late 30s. So how do I guide them? Because I've tried signing them up for classes, tried getting them set up a lawyer to try to get documents in place and every time it just falls are they asking for your help or are you volunteering it? Volunteering it because I don't want to

1:18:05be set up to have to deal with all of it when they die. Oh, man. Oh, man. Megan, I get it. First off, I feel your pain. The hard part about this is and Ken knows when someone's not asking and you're you know, you're breaking your neck trying to do it for them and help them. They don't want it. They don't care. It is not important to them and it is important to you. It should be, but the hard part of this is they don't care. Now, I don't know if you've had this conversation with them, which is, hey guys, I know you haven't asked for my help and I'm sorry if it feels like I am kind of encroaching on your privacy here, but here's what I'm thinking about. I'm thinking about the fact that I'm 30 years old. I have X amount of dollars and X amount of obligations. It's none of my business, but I have the information right now and you can tell me if I'm wrong that you're really not too concerned with retirement. You have the right not to be, but I am, and the reason why I am is because if I look up in your 80 years old and somebody needs care

1:19:11or somebody needs this, I'm realizing that all that's going to fall on me and that's when I'm concerned about. Is there a plan that I don't know about that you guys can tell me about? That's the conversation I'd be having. Instead of jumping straight to, let me help you with budgeting. I've had some of that conversation with them and it's always kind of the same of like, we'll get to it later. We have to grow our business. We have to focus on this. They'll come up with a thousand different kind of excuses on why they're never going to work on that. And then you can say, and then you can say, okay, well, I'm just, that's fine, but I do want to let you guys know so that you know. If there's no money there, if we look up in your 80 and there's no money there, I can't help. I can't. And then you can let them know that and say, so if you're on Medicaid, they have a ton of money. They're worth a lot. Okay. And they don't want to, and my

1:20:15mom will make like a comment of like, well, when I die, you're not going to get any of my half of those state. It's all going to be a scholarship because I want everyone to remember me for forever. But that'll be like, no, and then that'll be the end of the conversation. Like it'll be like, that's as much as you're going to get. Does that make sense? So you're concerned with your cut of the world and like them having money? It's more concern of like not doing what they wanted. If it had certain things they wanted, like if my mom wants a scholarship in her honor, I how am I supposed to know what color that's not? Yeah, then she'll leave instructions. And if she doesn't leave instructions to Jay's point, this, I'm going to tell you, this changed everything for me here in this conversation. Your mom is a treat to make a statement like that. And then your dad, your dad just kind of does the whole, okay. And that says a lot to me that I'm not sure the scholarship has been outlined. I think your dad just is blowing her off in a very, you know, sort of, oh, it's changed the subject kind of way. You don't need to worry about this.

1:21:16I got to tell you. And by the way, the more you keep bringing it up, it could be to your disadvantage, if you know what I'm saying. You're like the little fruit fly. You know, and by the way, this, this whole call is a little close to home for me because Megan, we had fun at the start of this call. I'll let you in on this. This is, this is probably almost two years worth of frustration for me. I've been trying to talk Jay into doing a duet with me on a live event stage. And it's the same thing she doesn't want to hear that every time I bring it up. So it's like what I'm doing to Jay and trying to sing with her. It's because you want to be sure. And I'm trying to tell you I should be sure. See, it's not going anywhere. And see, I keep telling her I want to do a duet. It'll be great. It'll be great. I tell her why I talk about my soft baritone. Nothing. She's not interested in singing with me on a stage. So like your mom and dad, it's the same thing. They just aren't interested in your input. So you got to learn. I got to walk away. It's just not going to happen. And I've had to deal with it. I'm currently processing

1:22:19it, but it was a little too soon, but I thought it was a good metaphor. I'm ready whenever you work in. Should I explain to all people who don't get sarcasm that I'm being completely an utterly sarcasm? They know. Okay, good. I would never try to sing next to you ever. Like even in the car. Really? With the radio up. We should do an episode of on front row seat and like some type of carpool karaoke. No, I just would have to practice forever. You're just too darn good. Too darn good. Okay, let's talk for a second, because I think there's a bigger issue I want to get to. Family. Whether it is, and I'm not going to go specific, I'm going to tee you up here. It could be a loaning money. We say don't loan money, right? It could be this kind of pressure here. The will. You know, there just has got to be some kind of basic read the room when you're dealing with family and money. Yes or no? Because you just don't have the influence you want,

1:23:21especially up the ladder to parents. Your parents are aging. They become the children. You become the parent. At some point, though, there's got to be some boundary that you put in place for your mental and emotional health. True. True. Boundaries are life. I'm saying this because I have my own personal journeys happening. Right. And let me just say, when folks call in with these questions, I feel like I'm in a whole other head space on it now because it hits. And the thing is, yes, you need boundaries. And it's not like boundaries there to like keep people out. It's just for everybody to be operating in their most healthy space. And that's the thing that you have to tell yourself and that I have told myself is, is not to be mean or to keep somebody at bay. It's keep everybody in their most healthy space. I'm talking to myself right now. Right. Because, okay, without getting into your personal stuff, it's like there are times where it's like, I have to put a boundary on me because if I say something and it gets completely ignored, that puts me in a

1:24:23bad place, right? When your intentions are good. Yeah. That's a boundary. You go, I want to protect myself by not saying anything. Yes. You know, that's half the battle. And then too, you also have to ask yourself, why am I even getting it? There's some times where it's like, you're getting involved. Why are you even getting involved? Did anybody ask you? That's right. Which is what I said to Megan, obviously, it panned out differently. But if nobody asked you, don't get involved. And here's another thing. So this is a fun example. And Megan Busterhart, great heart. Hey, she brings it up to mom and mom hits her back with, you're not getting any of my money. Well, that's not fun to hear. It's not, but it's also possible. It's prerogative. I know, but it's not brought up. If you don't bring it up, it doesn't get thrown in your face. That's true. Your point. Mine your business is what you're saying. If, listen, unless they asked you, Megan, we'd like to know what you think. Yes, they are. Mine your business.

1:25:41Welcome back to the Ramsey show in the Fair Winds Credit Union studio alongside Jade Worshaw and Ken Coleman. Triple eight, eight, two, five, five, two, two, five is the phone number. Riley joins us now on Seattle, Washington. Riley, how can we help? Hey, there. It's time for me to say for down payment. And I use the Ramsey trusted pro who wants me to stop contributing to retirement to get intense about storing cash. This gives me some pomo about missing compounding and just turning retirement off. Do you have any thoughts? I mean, if you're truly on baby step 3B, it's your choice. If you want to do both simultaneously, or if you want to take all of that money and really hammer the down payment hard for the next two to two and a half years, what's the horizon? How long is it going to take to save your down payment if you had all the money going towards it? Yeah, so I could probably do

1:26:44it within a year. If I got really intense and that's his ideas, stop doing things at the same time. How long would it take? We take two years. And what do you, like, are you in a hurry that I must have a house in one year? Or are you fine to take the two year route? Well, what's top is it's so expensive in Seattle that like waiting seems like prices will just continue to go up. So I would like to get intense. I just kind of need some encouragement to have a year where I don't contribute any. Okay, so you want to do the year plan. Yeah, I would just say that at the end of the day, you have to remember these are both investments. So mentally, we think, oh my gosh, I'm not investing. I'm giving up investing to get this house. And what's helped me and what did help me when I was in your shoes is to remember, real estate is also an investment. And it's a force savings account for your future, right? So once you buy this house, you're saving up

1:27:47this down payment. All that is doing is creating equity for when you buy the house. And so don't think of it as I'm not investing. Think of it as I'm kind of diversifying in this way. I've got money going that's going to go to my 401k for retirement. And then I'm also investing money into this primary real estate venture. Does that help? Yeah, absolutely. Like I'm just instead of investing in one area, I'm doing a new area that I'm just not used to. That's right. The other thing is I play around with some numbers and just do real math. Look at trends in the Seattle market over the last 30 years. What is the percentage? There are people that the market has gone up on average over a decade. What are the experts saying? Like right now, I know that I can go online and I can get a good guess on what home prices look to be. Will they go up in 2026 in my county?

1:28:50And so we're talking about 12 months difference. In other words, if you go all in, pause investing for 12 months, there's an amount of money that you anticipate being able to save. Correct? Yes. And then if we say, all right, if I didn't pause investing and I saved over a 24 month period, what would that amount of money be? And I think you know what that number is correct? Yeah. Okay. So then look at what do I think housing based on the market and whatever I can look at, how much do I think housing prices are going to be that much different in the difference of 12 months? I'm just saying I would look at all of this and not be like, oh my gosh, you know, it's going up, it's going up. And in all reality, it's not going to go up as much as you think in two years. So now you're looking at the difference of one year. So as you're making this decision, I'm just giving you some food for thought. Does it make sense? I'm not telling you what to do, but I'm just telling you to have all the information, get all the numbers out,

1:29:52and let's be educated about what we're doing here, because you may not have to pause investing. Yeah. And unfortunately for the area, it's like I 200,000 for down payment as my goal. And that is just seems like an insane amount of money. But if I waited, and maybe it will be, okay, now you need 240,000. And these are not incredible homes. It's just the market here. Right. And then if you think about that 40,000 across those two years, you have to ask yourself, okay, is that worth saving 40,000? Is it worth what I would have made investing that extra? I don't know how much you're saving monthly for this. But that's really the equation that you're looking at. The amount that you would be putting towards your down payment monthly, instead of investing it, would that money invested outpace what you project to be the increase in the real estate market? Now saying that, you could probably find some realistic projections out there. I personally

1:31:03I jade probably would not nerd out to that extent, because there's two things on the line. It's a question of values. You have to go, okay, how much do I value having this house? What's it going to give me? Is it going to give me stability? It's going to give me a little bit of diversity, diversification in my investments, because you know, this is probably not your forever home at some point, you'll probably sell it and you'll make some money and that sort of thing. I'm giving you that equation, because you might like to nerd out on it. I personally would not. I would just look at this and go, you know what? How quickly do I want to get this done and out of my life? I value doing it faster than I value putting aside the extra money and retirement. So I'm just going to do it. Or I just really love the way it feels to invest this full amount. So I'm fine with it, right? It's totally up to you. There's not a wrong or right answer on this. Is this your first home? Yes, it will be. And how old are you again? 36. 36. Are you single? Yep. Okay. Any plans to settle down?

1:32:10I mean, I like my area. I could easily, and the biggest thing is the commute. I mean, I could afford much more, but driving an hour each way. No, I agree with you on that. Very fun. By the way, right? I agree with you on that. That's a quality of life issue. That adds up really quick. My point is, is I'm not trying to get into your relationship life, but I am saying if you plan to settle down at some point, that person may have and should have some say in where you're going to live. And at 36 and single, not ready to settle down, does it sound like to me, which is fine? I'm just giving you, if I'm sitting in your shoes, I'm probably going to take, I'm, I'm going to save up more and I'm going to take my time. I'm not going to try to rush in the next 12 months that I wouldn't knowing what I know about. Maybe you hit my goal, but then not purchase right away. No, I'm just saying you're the, what you gave us was should I pause my, my retirement investing and go all in and take that money and put it into baby step 3B? I thought that was the question.

1:33:15Correct. And I'm saying in your situation, I would not pause investing. I would just keep investing and keep saving. Yeah, because he's not, he's not in a situation where I feel like he needs to rush to settle down in a place to live. He's single. I'm okay with renting in his situation. Huh, I'm, you know what? I'm just the opposite. I'm like, if there's not a lovely lady in the picture, be one thing if you're like, I'm dating someone, we're getting serious, I'd be like, eh, wait, you guys can do this together. But if there's no one in the picture, I'd be like, let me, let me get this house before this real estate market goes up. And you're talking, you're talking to a guy who's older and understands the power of that investing. And I'm just like, I wouldn't rush to buy if I were you. Certainly not in Seattle. Two different opinions. So you get to do what you want it. That's right. It's your call, Riley. And you're a smart guy. You're doing the right thing. Love the question. Do what feels best for you on this. You're not going to screw it up. That's right. Yeah.

1:34:18Hey, good folks, Dr. John Deloney here. Don't you think life is too short to hate Mondays? Listen, you're worth loving the work you do and where you do it. So guess what? Ramsay Solutions is hiring. If you're ready to join an amazing team that's all about changing lives and spreading hope, we want to see your application. Right now we're hiring for technology sales, marketing, writing, copy editing and creative roles. Check out all our job postings at ramsysolutions.com slash careers. That's ramsysolutions.com slash careers. All right, folks, if you fly blind with your taxes,

1:35:20oh, they're going to be confusing, stressful. I already have a little like kind of foe in the gesture just thinking about flying blind on taxes, something I would never do ever, ever, ever. But with the help of ramsys easy to digest tax resources, you can handle your taxes with ease and confidence. Go to ramsysolutions.com slash taxes ramsysolutions.com slash taxes. And they'll help you navigate all the different changes in life, confusing forms and all the complicated filing scenarios. You also find tips and tricks to make your tax return easy and guides on filing if you're self-employed or a freelancer. So there it is folks ramsysolutions.com slash taxes, a tremendous resource and a really scary, scary and sometimes very, very frustrating area of our lives. So there you go. Let's go to Grace now in Green Bay, Wisconsin. Grace, how can we help today? Hi, I was wondering if like you guys have any advice on how like a young

1:36:24person can like get a good, good paying job without a college degree. I have lots and lots to say about it. Let's talk about your specific situation. Tell me how old you are. I'm 20. 20. Are you in school out of school? Not going to do school? What's your story? I would want to go to college, but I don't want to go in debt in order to go to college. So I'm currently just like working for like entry-level jobs. Okay. What are you making? I was making $17 an hour. Like that was the most I ever made. You what? You were. That says in the past. What are we making right now? Well, I'm currently trying to get into the military, but in case I don't, because I know a lot of people get medically rejected. In case I don't. You want to fall back? Yeah. All right, just for fun. Okay. Like not holding you to these answers. You don't have to sound right. You don't have to

1:37:24impress us. We already a big fan of you, Grace. Let's assume you had the degree and say that the money was there and you could get a degree and that degree was going to get you into a career path. Do you have any ideas, desires for what that answer would be? What is that career path or paths? Plural. I would like to be in government and be able to travel. Government and travel. Tell me more about this government job. Just give me the ideal job. Ken, this is what my days would look like. What would you be doing? My days or like the exact job title? There you go. What should you be doing during the day? Forget job title. I don't care about job title. What would you be doing in the government? Well, I really like the current people in government right now and I would want to like the dream job would be like to be able to have that like some power to be able to change like bad laws and just like change laws. Okay, got it. So you're talking about you're talking about

1:38:31legislative job. That's way up the ladder. You gave me the answer. Okay, so the military situation. When are we going to find out about that? What's our timeline? Well, I'm going to boot camp tomorrow. So I'll find out within a week or two. Oh, so you're already in. Yes, but I'm asking like for other people like because a lot of people get medically rejected from the military and there's still a chance that I could. So that's why I was really curious like how you guys advise people like if they have like like if they want to get like a good pain like an influential job like how they can go about that without going into debt. Well, I'm not going to answer it on influential because that's very subjective. But if for some reason you get medically rejected, you don't cut it in boot camp. What we're going to do is if we don't have any money to get qualified in college, then we look at can I get qualified to do a variety of different things? The answer to

1:39:34that is yes. So we really want to start with what was it that I would like to do? And the answer to what is it that you would like to do should always come back to what are you good at doing? Right? So what are what are the skills and talents you have? And here's the deal. I'm going to gift you this so you don't have to go through this long answer. I'm going to give you my book. Find the work you're wired to do. It has a 20 minute get clear career assessment in it. And it's actually going to involve AI and it's going to spit out some very specific things based on three criteria that the assessment measures. What grace is good at? That's your talent and skills. What grace really loves to do? We call that passion. That's work. You really look forward. It's a task or a function or a role. And then we're going to look at what motivates grace? What's her mission or result in life? Does what gets her up in the morning to put out into the world? That's a result for more. So the assessment will do that for you. But the answer to your fallback is I'm going to look at my assessment and look at what I'm good at doing. And now I know what types of jobs that I can go get

1:40:34or I can learn. And I could go through a training program. I could go to some type of a boot camp if it's technology related. If it's a trade, I can go to trade school. You still tracking with me? Yeah. There you go. So we figure out what is the work I can do because I've got some route raw talent. And then what's the work I want to do? Because I know that I love getting up every day. And maybe I like doing process work. Maybe I like doing people work. Maybe I like working with objects. Maybe I like ID80 and creating from my head. Those are the four types of work. Idea work, people work, process work, and object work. And so again, this assessment will help you. But as you begin to figure out what kind of work I would like to do. And do I have the requisite talent with training? Now we've got some answers. And now we look at, okay, what is it going to take for me to get into that? And most of the time you're going to find you don't need a college degree that you can work your way into that. So let's see how the military thing plays out. And here's the good

1:41:34news for you. You make it through boot camp. You stick it out. You're going to now have the GI bill. You're familiar with that. Yes. Yes. And now Grace can do. Yeah. Now Grace can do whatever she wants after she pays, you know, serves her time rather. So really excited for you. Do you have some medical condition that you don't need to share with us? But are you, is there something going on with you or you think it's a good chance you may not make it through boot camp? No. But I mean, I just wanted to have like a backup plan. I want to bring Jade in because she's, she's got a lot of wisdom here. I want you to weigh it on the mindset and anything tactical that you think she might do is she walks into this very intense season that I think she's going to make it through. But what if she doesn't? You're talking about the boot camp specifically. What do you want to add to this? What would she do? What's her fault? What would you add to what I said? Anything you want to add? I mean, you covered the career front like cover to cover. I don't have anything to add there. Okay. Are we talking about going into the boot camp like what to experience? No, I'm saying if she doesn't make it, which we don't want to focus on that, but since she asked,

1:42:38yeah, there's no reason to say to her. If she doesn't make it for some reference. At the career front, would you say to her mindset wise, emotion? I would say, okay, I would say, you know, sometimes when things don't go the way we want them to go, we're thinking it's something like we automatically think it's a negative. Like if I don't get the job, it was a loss. If I switch jobs, it's a demotion and I would say to flip that around and if something doesn't happen, it's because it wasn't supposed to happen, which means there's the other successful piece that's out there waiting for you to just find it. And it's likely better than what you were initially planning for. That's why the other thing didn't work out. Yeah. What branch, do you mind if I ask what branch you're going into? Sure, the Navy. Come on. My grandfather's were both in the Navy. I'm personal. There we go. I think it's fantastic. Congratulations. Can we just say congratulations on UV and selected. You're going into one of the great organizations in the world, United States, Navy. You're going to learn so much and you're going to come out of this thing. A lot tougher sounds

1:43:40like after boot camp. I don't know what boot camps like in the Navy. Is boot camp in the Navy as hard as it is in the Marines? No, it's not. No, not at all. I don't think at least. Good for you. I think you're going to crush it. Hey, we're rooting for you here. We're rooting for you. Yeah. So hang on the line. My gift to you, your boot camp gift, is find the work you're wired to do. And also, Christian, let's get her my other best-selling book from paycheck to purpose, which is the seven stages of doing work that you were absolutely created to. Very proud of those stages. That'll be helpful after you read the first book and take the assessment. And thank you for serving our country. You're a great American. I don't know if I could do well in the Navy, Jade. You know why? The deep sea. I'm afraid I'd be like ralfing over the edge of the boat all the time. You get your seat legs. Would I? Yeah.

1:44:49How many times have you started January saying, this is the year I'm finally going to get my money under control. But then months go by and you still feel broke. You work too hard to keep living like that. Look, there's only one way to move the needle on your finances this year. You've got to have a plan. So start by downloading every dollar. Every dollar is way more than our world class budgeting app. In 15 minutes, we'll build you a personalized plan to free up extra margin in your budget and use it to beat debt and build wealth. You'll find thousands of dollars on average just the first day. And you'll get new steps and new lessons every day that help you stay on track and create unstoppable momentum. Don't waste one more day feeling broken stress. Get your plan in just

1:45:5415 minutes by downloading every dollar for free today. All right, the Reims, you show question of the day is brought to you by YRIFI if defaulted private student loans have taken over your life. YRIFI can help you breathe again with a low fixed rate plan that fits your budget. Visit YRIFI.com slash Ramsey. That's the letter Y-R-E-F-Y.com slash Ramsey. It's not available in all states already then. Today's question comes from Aaron and Kansas. He says, would there ever be a time where you wouldn't pay tithes in order to get yourself out of a bad financial situation? I'm doing okay except I was dumb and bought a condo I couldn't afford. Now I'm in a situation where it's hard to pay my tithe and I'm just curious as

1:46:58to your thoughts on how to juggle generosity and getting out of debt. I love this question. There's a couple facets to it. I'll try to hit all of them first off for anybody listening. Tithe, if you're Christfowler, one of the practices is you give 10% of what you earn back to your church in order for that to be used for missions or building the church or what have you. That's a practice that many Christfowlers do. That being said, here at Ramsey we would say giving that type of generosity, any type of generosity including things like tithe should be at the top of your list, the top of your budget, as a practice all the time. That's my personal stance on it as well. That being said, from a debt payoff perspective, I always like to remind people that it's your choice. I personally would always give. It's just a personal conviction that I have. If you do want to get

1:48:01into the spiritual part of it, that's between you and God. I don't think that He's going to strike it with lightning if you don't give. I also believe that your heart should be in the right place to give, to be a cheerful giver, giving out of willingness. It sounds like at this point, you're not sure if you're willing to give this money. That's something that you can kind of wrestle through on your own. I'm not going to sit here and tell you, yes or no, I can tell you what I would do, which I would continue to give. When Sam and I were going through our debt payoff, 460,000, money was so tight and every scent counted. For me, my personal perspective was, you can't out-give God. When you do give, you receive back. That's what scripture tells us, is that when you give it, it shall be given. Press down, shaking together, running over. It will flow back to you. I believe that. I believe that not just in a monetary sense, but you can receive that back with peace. You can receive that back with favor, open doors, all of these different

1:49:02things. For me personally, it was something that I felt like if I didn't do, I was only cheating myself is kind of the way I viewed it and Sam viewed it. That's up to you to kind of decipher. That's just my take. I really want to look at this condo that you can't afford, because what I'm really just seeing here is less of a tie-this-you and more of a sustainability issue, because what's the solution for this condo that's outside of your budgetary range? That's my question. I'd really be trying to get that right-sized and right-side up. That's the bigger play here, I think, then, if you miss a month of tithe. Here's the reality. My guess is not having his budget in front of us that if the tithe payment makes enough room to him to pay the, he's got bigger problems. It's not just the tithe issue. We're running way too tight. I think you're right. Very astute on that. Thank you for the question. Let's now go. This is kind of fun. We've got Jade

1:50:02in studio with me, but we're going here in our neighborhood, right? In Nashville, Tennessee, where Jade is on the line. Jade, how can we help? Hi. Thank you for having me. Sure. I'm turning this side. I'm thinking about selling my house. I bought it when I was 22, I'm 34 right now. I do have a lot of equity, but the house is pretty old. It's been like in 1965. I'm coming up to having a live issue as far as repairs with the house, and it's just weighing on financially to where it's causing me to be behind other things, because of the repairs itself. I am a single woman with two kids. I'm thinking about selling, just to get a first start, a new start, but with me sharing on the house, I was going to try to use that money that I make from selling the house to put down towards a new house, and probably

1:51:03like consolidate some of my views. Okay. And I know. Well, tell us about the house. What do you owe on the home, and then tell us what you think you can get for the home? I owe like $60,000, $64,000 on the house, and I really don't know how much I would get. I have been getting a lot of calls all the time, and they would say like $200 something, a little less than $300. Okay. Well, step one is, we want you to get a ramsysolutions.com after this phone call, and we want you to look up our real estate page, and let's get you with, let's have you talk to two or three of the trusted pros over there. Somebody that knows the national market really well, and they're they're affiliated in the way that they know how we want you, they them to treat you, they're going to treat you well. You go with the one that you have the best vibe with, make sure that you understand everything, but let's get some real pros, some ramsys trusted

1:52:07pros out there to tell you what your house is worth, and give you a sense of the market, and what you might be able to go to before we ever really decide on this, we need to know that, you need to know that for sure. Walk Jay through your debt, walk us through that. I have three credit cards, the bulk of, I mean, the other one is $2,801,900, I just is very little. I do have school loan debt, but it's a good standing right now. How much behind the auto, all about like 70,000. Okay. How much do you earn? I make like $59,000 a year. What's that? What do you take home every month? What do you see? It's very, very fun over time. Okay. Give me a good, give me a, in between a good month and a bad month, what is it? I would say like a good month for a month, maybe like $4,200. Okay.

1:53:23A bad month, maybe like $3,500. Okay. So here's what I'm hearing. I have a couple clarifying questions. One, what is your, would you, when you mentioned earlier, that was okay. Tell me about the card. This is about like $18,000. Okay. So when you said earlier that it was tight and it was, it was, you know, money was tight. Was it the monthly payment that's tight or was it when you're thinking about the repairs? Was it the repairs that were really what was frustrating you? I'm just the main is to continue, like for me, my kids just continue living here. I would have to keep investing into the house as far as repairing things. Like things like what? Like a roof, AC unit, just recycling, yes, that's down currently right now. I just recently, things to leak in my house. Okay. I have another one, but it's on the backside of the house,

1:54:26so I haven't dealt with that really. Okay. So these are higher ticket, higher ticket items is what it sounds like. Kenneth's right, I would want to get real numbers around selling the place. I also want you to have some clarity around your numbers. It feels like they're kind of a guess right now, and I have a sense that if you had them in a budget, you could make a plan that could possibly really, really help you. Do you have a budget? I do. I'm having that the best way. I don't have a budget. I'm like doing it. Okay. We're going to send you a better budget. We're going to send you a copy of every dollar and give you a subscription for a year so that you can use it, so that you can find out what your margin is, because what it might, Jade, just be you needing to get and see how much margin do I have? What would it take for me to cut back a little bit and save up to do some of these repairs? I'm not convinced right away that it's time to sell, but the budget's going

1:55:32to tell you, if you're looking at it and you're in the red most months, then that'd be an indicator. But if you're looking at it and you're finding a couple hundred dollars of margin and you're realizing, man, I could be paying more towards these credit cards and clear those out. I might be interested in seeing this through, as long as that mortgage is no more than 25% of that 4,200 every month. You spend hours researching before making a major purchase like a home or car, but it's also a good idea to put in the work searching for the right insurance coverage. To protect your biggest assets, I recommend using Ramsey Trusted Pros, whether you're looking for car, home, or any other type of insurance, Ramsey Trusted Providers have been coached and vetted to serve you like we would. Find what you need at ramseysolutions.com. Slash insurance.

1:56:36Our scripture of the day comes from 1 Peter 1 verse 6, so be truly glad. There is wonderful joy ahead, even though you have to endure many trials for a little while. Our quote of the day from Ronald Reagan, the future doesn't belong to the faint-hearted. It belongs to the brave. Oh, I see what they did there. That crypto commercial with Matt Damon tried to borrow a little bit of that. Fortune favors the bold. I wonder if they were borrowing from this Reagan quote. I just wonder. You might be right. I just wonder. Jennifer is up in San Francisco. Jennifer, how do we help? Hi, thank you for taking my call. So I have a question. I am super new to the Ramsey baby sets. I have kind of a unique situation. Since I'm now on this track and trying to solidify

1:57:45being, practicing financial literacy, I have a 17-year-old son and I want to make sure that he doesn't struggle with the lack of knowledge for financial literacy that I did growing up. So how transparent should I be in communicating my mistake to help him make that foundation starting now, using Ramsey principles? Well, I'm just curious. Let's just say that he's in the room and you're asking me. It's like, oh, yeah, sure. Sure, the mistakes. You really love your son and Noah. What would those mistakes be? Well, when I was little, I, well, like, you know, young getting turned into the world, I didn't understand about budgeting. I didn't know, you know, the importance of, you know, making sure that you know every cent of your money went with it and it caused struggles. Okay. You know, thankfully now I've worked my way into you know, a fantastic career and now kind of seen the, oh, you know, I can, I still have time to

1:58:51correct the mistakes that I made. Okay. But my most important aspect is making sure that, you know, as a parent, you want better for your child. Yeah. You know, look, I love that answer. Not to be as open. Yeah. Well, I don't think you have to, so my kids, of course, I have a unique situation in my kids' role their eyes every time they see me on a video or anything like that. But, you know, I talked to them about the big picture financial stuff, obviously, in my role here. But my wife and I don't, we don't let them see our budget. We're not, we're not opening up the, that's just something they can't handle in order they need to know. However, the reason I asked you that first question, I'm sure that you could say if I was in a room with you and we were white boarding your biggest financial mistakes, you said the budget, you didn't budget, you didn't know how to budget. Okay, that's one. You probably at some point accumulated some debt. I would talk about those big mistakes and just keep it that simple. And then, and then come alongside of him after you talk about, you know what? I wish someone had talked, talked to me about budgeting. Now I use

1:59:55this thing called every dollar. Let me explain the concept of the budget, right? And you walk in through it and you go, here's why. But I think kids will listen to our pain more than they will are advice. And I know that there've been a handful of times, Jade, I want to bring you in on this where I have had some moments with all three of my kids different times where I realized in talking about dumb things that I did, failures that I had made, they locked in and asked lots of questions and it started with just pure curiosity. I kind of want to know how dad screwed up because he might be the idiot that I think he is. And in talking about my failures, I was then and only then able to, and most of the time, they'll ask questions and I was able to give some insight into how to avoid that for themselves. I think that's the easiest way to go. Jade, I want you to weigh it on this because I think you get some great insight. Honestly, can I think you got it? Your kids are older than mine, mine are five and seven. And so we're very low on the sharing category at this point.

2:01:01But I agree with Ken, I mean, I'm just thinking back to the things that I remember that my own parents taught me. And a lot of it was that sort of thing. Don't make the mistake I did do this instead. I think that's there's just a relatable quality there that young adults want to see. They want to see that they're not alone in that you were once thinking some of the same thoughts they're thinking. Does he have his own job? He just got his first job right after he got his strivers license. Great. You know what I think is also the greatest teachers to let him, let him make some mistakes. And then you be there to go, hey, and not correct him is going to be very hard, mom, especially a 17 year old boy who's now distancing himself from you. I'm sure you're already seeing it. And it's a little. I think we're about as close as I could expect to be for having a 17 year old. And I'm just telling you, having walked through, I'm just telling you, if Stacy were on the area right now, there were things and again, every situation is different, but they naturally push away from you. And if he makes some mistakes with his own money,

2:02:03Jennifer, your posture needs to be, oh, buddy, I'm so sorry about that. I did something like that. Like, no, I told you so or you can't do that. It's got to be, oh, oh, that stinks. I did that. Oh, man, I blew that so many times. Hey, you want my thoughts on how do you avoid that? He's going to need that approach. But I think one of the things we do as parents sometimes is we hover way too much, especially with teenagers as opposed to be available, not hover, but be available when they blow it. And in the right posture. And I think that's probably the best thing you can do. Thank you for the call. I love that. It's like a good salesperson. You want him, you have to be far enough away that you're not annoying them. But if they need you, they can just, yeah. What's the old phrase when the student is ready, the teacher appears kind of a thing? And I think with parenting, that's one of the things that I'm so stinkin' hard. And I'm still in the middle of, you know, I got a 20 at 18 and a 17. But, you know, I still don't do that well.

2:03:05But I found that when I can just chill out, they come to you. It's like getting a little birdie to come to you. A hundred percent. They come to us and they're like, oh, I'm like, oh, and I'm learning to just be like, my good friend less parent taught me this is a world-renowned psychology. I was just like, just immediately empathize. Yeah. First thing is, oh, man, that stinks. That's got to feel awful. And just like, sit in it and set a clean it up. I'm going to remember this. Yeah. I'm going to put, I'm tucking this in my back pocket. Well, the parental tendency is to come in and clean up the mess. Oh, you're sitting in your own dookie. Let's get that all cleaned up and sit and let them sit in it and go, ooh, that's awful, isn't it? Yeah. It's pretty, oh, I feel so bad you're sitting in that. How did we get there? What happened? Yeah. And boy, it's so hard to do that, right? Like, what happened? Let them describe how they got in that situation. Crazy. All right, let's go to Sean. See if we can help Sean out on the tails of that call. Sean, how can we help? Hey guys, thank you for having me. Hey, I'm glad to have you. Listen, I'm putting you

2:04:06on the spot. We've got about two minutes. So you can hit us with what we can help with quick. Okay, I'm new to making a budget. I've never made one before. Maybe it's bad timing on my end here, but I'm going through a career change. New job starts next month as well as having a child in three months. Yikes. So having a hard time trying to figure out a budget. My income is irregular. I work in sales and then I'm also in the Army Reserve and so that income is also different month to month. Okay, you're in good hands with Jay. All right. So what I would do, I would start out by saying, what's the worst month I could possibly have? Money wise. With the armor reserve, what's the least they could pay me and with my sales job? Like, what's that base salary that I know I'm going to get? And I would start there because you truly don't know. It's a new sales job. You don't know what you're going to make. You don't know if you're going to knock it out of the park or if it's going to be a struggle for you. So I would start with that lowest amount and that way I kind of have a sense of this is the least I could make. And then from there, I'd build the budget and I'd realize, okay, if I have the worst month ever, here's how much in the red I'll be or you might

2:05:10discover, oh, I even in a bad month, I won't be in the red at all, right? And so just putting having some real facts to put to this is going to is going to help with any anxiety you have around it. And then let's say you you do that and you are in the red, I would just kind of have some be formulating some thoughts, okay, if that happens and I'm $500 in the red, what would I do to fix it? Start thinking about that. And then as you start to do the job and you start to figure out, okay, this is the regularity. This is kind of what I'm used to making. You'll start budgeting based on that number. But for sales, any irregular income, small business, if you can create a cushion, a decent enough cushion, that if you know, hey, it takes $5,000 to run my my life, I always have a cushion with that $5,000 in it. And I'm kind of pulling from it as needed and it'll take you some time to build that up. But for irregular income, small business that really, really does help. Yeah, love that advice. You can do this. Hang on a line. Let's get him into every dollar.

2:06:10Love that question. Let's let you let you start practicing and you will get really good at it. Christian, I'll take care of you. Thank you, Sean, for the call. All right, folks, remember this. There's ultimately only one way to financial peace and that's to walk daily with the Prince of Peace, Christ Jesus.