I Owe More On My Car Than I Make In A Year

0:00Brought to you by the EveryDollar app, start budgeting for free today. I make annual income of $31,700 a year and I'm kind of in the bond with a car payment and ATV payment situation too. The car is worth like $28,000 when I got done financing it and the payment's like $520 out of money. Holy smokes. Yeah. And then you would bond an ATV? Yeah. For $10,000 and that's $252 a month. So I don't want to kick you while you're down but that's a very Arkansas thing to do, right? Yeah. Yeah. It's a Texas thing to do too. So there we go. Yeah. So pot talking to the kettle here. Wow. Yeah. It's terrible. So I'm thinking I'm just going to have to get rid of this car. Correct. Yes. I know of here. It's a Honda Civic 2009 so I'm fixing it. I'm fixing it up.

1:00So. Good for you. How much money will you have to put into that? Not very much. I got any water pump installed and all that needs now is a oil. Well, that's great. The ET oil gas is going to be good to go. So why are you calling us? You already know what to do. Well, so you got $28,000. Is that what you owe on the car? How much could you sell it for? Come on. Oh no. I was going to say it again. Say it again. The negative equity is $10,000. So I'll be negative $10,000 upside on the car. OK. So you can sell it for $18. Is what you're saying? Yeah. OK. So you just have to take a small loan out if you can for $10. And how about the end? There's only way. Is there any way I can go through Fairwinds or is it any possible way I could do it that way? You'll have to call them and they'll sit down and check out your history. Yeah. I mean, a credit union or a local credit union would be a great option. They're usually more willing to work with people and looking at their specific situation.

2:01How about the ATV? What could you sell it for? I'm not really sure. I haven't looked in the value on the ATV yet. OK. It might be maybe the values like $7,000 possibly kinds of to new. Yeah. Well, I would encourage you. I'm not willing to probably just try to save up the three grand if you can for the difference. Yeah. Yeah. And be done with it. And thank God you have this other car. I mean, honestly, that's a life saver in this situation. I used to be debt-free. Yeah. I used to be debt-free a long time ago. Y'all was managing money really good. And I just had a messed up. Yeah. We've all been there, dude. It happens. How old are you, Skyler? I am 27. OK. Good for you. What do you do for living? I work at NDEX screens. I'm a delivery driver working three days a week. I deliver teeth to the North War Arkansas region. What do you deliver? Teeth. I deliver dentures. I'm a delivery driver for green. This is becoming my favorite call of all time ever. I deliver teeth.

3:01Amazing. To North Arkansas. Amazing. Yeah. What are you doing the other two days a week? The other four days a week. Hey, you got to take care of your vehicle if you want to keep it on the road. And the smartest move is regular maintenance. I recommend Christian Brothers Automotive, the official auto repair partner of the Ramsey Show. Your local Christian Brothers Shop provides high quality maintenance and repair services. You can trust. Visit cbac.com slash Ramsey to find a location near you and get an exclusive Ramsey discount of 10% off your visit. 10% off up to a $250 value. See store for details. What are you doing the other two days a week? The other four days a week. Well, I've sparked a spark all the time and I just work. You spark all the time? Is that like a weed reference? No, it is a grocery delivery platform through Walmart. You know, okay, guys, you got your gotcha. Gotcha, gotcha. Yeah, okay. Yeah. How much is your teeth delivery job?

4:04How much does that pay? 15, 20 an hour. Okay. Do you get more doing that or the spark grocery delivery? Grocery delivery. I could pick up a lot. Maybe around like four weeks, like $800. So actually extra money in my pocket. It's just if I can get these car payments situated, I'll be so much better off. Yeah, but you're still very, very economically vulnerable, brother. Yeah, yeah. I want to get you up to 50 or something, right? Yeah, you can't afford. You can't afford a flat tire. No. Okay, so barely afford tires on this car and I had to put it on a credit card with this. No, you did it. You chose to. Yeah, he's a deal. He's a deal. Why don't you pursue more stable work? Well, I could possibly find a different position. It's just you can 1000 million billion percent find a different position. It's just I love three days a week, though,

5:05but sometimes we have to sacrifice order to achieve what we want to achieve. I think we do Skylar. Bro, I think we do. I think we do. 40 hours a week. Working. Dude. Yeah, we got it. We got it. We got to up the, we got to update Andy. You have to get in the game of life, my brother. Yeah, not that money brings happiness. We're not saying that, but there is something about having stability. Meaningful work does bring happiness. Okay, thank you, Ken Coleman. Yes, thank you. It does. If you ever call me Ken again, it's stable. If I could be more stable and have no payments, I mean, that's just a way to go. Well, exactly. I'm going to see you. Yeah, and an emergency fund and a retirement account. Like, there's some, yeah, there's a, are you dating? I do have an every dollar app, huh? Good. Yeah, but you don't have any money to, to budget with. Yes, he does. It's got like three grand a month. And in 80% of it goes to car pay. We're getting a free payments, right? He's got three budget categories. Food, not dying, ATV.

6:07Okay, okay, brother. Um, I'm going to send you Ken Coleman's book, find the work you're wired to do, and it has a career assessment in there. Yeah. Mm-hmm. I want you to get serious, I want you to do this exercise tonight and be totally serious. And I appreciate you having fun with us on this call. Listen, I want you to write a letter to 37 year old you tonight. Okay. And I want you to write him a letter about the life he's going to have because you chose to get off your butt and stop coasting literally through life. Yeah. And the work you put in today, and you're entering into your late 20s and into your early 30s, will be the platform from strength, from integrity, from work ethic, from skills, um, and- Contribution to the world, yeah. People that you meet and shake hands with and they learn to trust you, those things will be the anchor points of your life at 37. And so I want you to write yourself a letter and say, here's who I chose that we were going to become.

7:09You're welcome. And how I discovered the Ramsey show is, I know this guy that lives in Heaver, he told me about the Ramsey show. And I got involved and I started listening to the podcast. Wow, this is the same situation I'm in. Well, game on then. A mirrored situation. Yes. I listen to the off podcast every day, going down the road, delivering dentures and work. Not every day, only three days a week. Well, if I can find the old ones, I'll review the old ones. Oh, Skylar, you know what, you're great. I would, I'm with John. You're awesome. Yeah, um, finding some purpose, you know what I mean? Like finding, I'm like, delivery dentures is such a great gift. Yeah, yeah, I'm not saying that, but it's the, it's the coasting, sleepwalking vibe that we're getting. Yeah. That it's like, hey, just let's add a little bit more. A whole bunch more, a whole bunch more of excitement and spark, ask yourself that scary terrifying question. You only get one, one roll of the dice in this life. One life. Are you gonna, are you just gonna cash it out, barely getting by, driving three days a week,

8:12or are you gonna say, hey, I was put on this planet to contribute, and here's what that's gonna look like and part of contribution means I'm gonna have peace, I'm gonna be anchored, I'm gonna have some security so that I can offer that for other people. And man, that means not working, just kind of coasting three days a week. That means getting after it. Yeah, hold on the line, Skylar, Christian will pick up. We'll get you Kim's book. But you have some great foundational things that you're doing already with habits with money. We're gonna have to make just some big changes to really leapfrog and jump forward in some progress, which I believe you could do. Create your free every dollar budget today, the simplest way to budget for your life.