If You Want to Build Wealth, Stop Acting Like Everyone Else
01:28:52 Share

This is the Ramsey Show. Welcome, America. We're here to help you win with your money, win in your profession, and win with your relationships alongside the graceful, the fabulous Rachel Cruz, fresh off of her first inaugural ball, I might add. We might hear about that. We might not. She joins me. I'm Ken Coleman, and we're here for you. The phone number is 888-825-5225, 888-825-5225.

825-5225. And these are serious topics, but we like to have some fun. We do our best to smile and coach you up because we want you to win. So it's going to be fun today. You ready to go, partner? Let's do it. She's ready. Megan joins us in Des Moines, Iowa. Megan, how can we help today?

Hi, so excited to talk to you today. I listen every day, so this is kind of surreal. Oh, thank you. I'm looking for some advice on bringing up estate planning with my multimillionaire in-laws who are unwilling to have a conversation with my husband and I, but state that he and his brother will both be taken care of when they pass. How do we inquire so we know where the assets are in the event of long-term care or their passing? Wow.

Wow. Man. Sounds like you've tried and they're not interested. So I'm not sure that there's some unique strategy we're sitting on top of because it sounds like they're like, look, you're fine. We'll let you know when we're gone.

Sounds like to me. Yeah, essentially. Yeah, it's at 50-50. You know, it's just my husband and his brother. And he said, you know, you're taken care of. Let me ask you this. What is it that you all want to know? Let's just assume that they were like, sure. What is it that you're looking to discover? Well,

Well, mostly there are multiple properties involved as well as a business that my father-in-law owns. And we have no idea because we're not in that specific field what we would need to do in the event of, you know, potentially selling that or...

or his passing. So yeah, that's our major concern. All right. So that reveals the answer to my next question, Rachel, is going to be why. Why do you want to know what it is that you want to know? And it seems like you guys are trying to be thoughtful, strategic. Yeah. And how have the conversations gone so far? Because you obviously know that they're not interested in talking about it. So who has brought them, who has brought up the idea of having these conversations to them?

So my husband has brought them up. He is the oldest and we have a young family. So he's kind of more thinking about the future for those reasons. And they've also made it very clear that they do not want me involved in the conversations. Why? So that throws another added bonus. Well, I'm not sure. Do you have a good relationship with them now? Barely. I mean, we're not best friends, but it's not, you know, adversarial. And what about his brother? Is he married?

He is not. Okay.

I think you've got to take a sign here. And I'm going to go back to my line of questioning. So to the best of your ability, you guys need to just run a scenario, feels like to me, where you go, all right, let's say they give us this property and that property. What would we need to know to be able to be prepared to make the most of that? Go ahead and run that exercise out. You don't need to know which ones. If you know the whole portfolio and you know that you could get, and I'm getting, I mean, let me just walk you through this. How many properties are we talking about total?

Three properties, two are rentals. One is a main home in which they live in, and the total is about $2.5 million. Okay, great. And they are owned assets. Go do your homework on those three properties. What is it that you feel like you would need to know if you were to come into ownership today? Whatever you told us your concerns were, go ahead and figure that out. Yeah, and I think too, Megan...

You know, you can only control what you can control. They're not there. I mean, you guys have kind of asked them and they're not going to give it. So, yeah, like Ken said earlier in the call, we don't have some secret line to give you that suddenly they decide to tell you everything. So what I would do, what I can control if I was in your scenario and this was my parents is my sibling, because that's where they can. That's where the the butting heads could start to happen. The fractured relationships. It's not the parents, because if they're gone, they're gone.

who's left is him and his brother. So if I were him, I mean, I would get in a room with his brother and be like, Hey, let's just play like to your point, let's play out some scenarios just so we can, so we can plan out as much as we can with the information we have and,

And then that's all we can do. I mean, so I would just make sure that that relationship is in a healthy place because the calls that we do get a lot on here are when a family member dies and it's handed off to siblings and their adult siblings with other kids. It starts to get messy and all this. So if you can shore up that relationship and

That's what you can do. But yeah, I mean, you can't force them to tell you guys. And we're on team Megan. Okay, Megan? So take this the right way. I'm on your team. Okay? They've made it clear for some reason, and I'm not a therapist and nor am I a mind reader.

But it's pretty clear to me that they've made it clear that they don't want you involved. So they're feeling something, whether you did something or not. That's not the point. The point is they've laid out a boundary. I feel like and it doesn't matter why we don't know. And you may not know, but you need to respect the boundary because it's only going to create what Rachel is saying, some tension. So you need to go, you know what?

A, they're not my parents. B, they've made it clear to my hubs that they don't want me involved. So you know what? I'm not involved. And that would be my advice from a relationship standpoint. Let this go. Because I can tell you that we can feel it on you right now. There's some angst that you have. You can hear it on you because this is irritating to you. And that's okay. But you got to deal with that.

Because you don't have any control. Rachel nailed that. So sorry, we can't give you a hack. I mean, other than, you know, hiring some former CIA operative. Yeah. Get information out of them. It's not happening. The family money dynamic. You want to wade in carefully, especially as an in-law. And like my in-laws...

are so wonderful. They are very open with us. And every other year, we get together as a family. And his dad has even said to the in-laws, like, I want your thoughts and opinions. I mean, they're very kind in that way. But I still...

And very aware. I'm not their kid. Like, like, like there's, you know what I mean? Like there's still a, and even like, I think even within the Ramseys, like they know everything. And again, mom and dad would love and appreciate and respect the opinions of the in-laws for sure. But there's still just that small level of just social awareness of like, okay, these are not my parents or, you know, I'm the in-law that I think is appropriate to, I don't know, maybe people disagree with that. But I think there's a level of like, when you are their kid and blood, there's a level

There's a level of holding that they have that an in-law never will. Yeah. I mean, what went off in your head when you heard her say, they've made it clear that they don't want me involved? I'm just curious, your female intuition and also your professional intuition. What did you think? That it's obviously not a great relationship. That's what I thought. Because then you asked her and she said, fairly. Fairly.

It's okay. When someone asks me, if you ask me, do you have a good relationship with somebody? And if I drop fairly on you. You know, it's probably not going well. I don't think it's great. It's certainly not great. And I think there's some problems. And I will say though too. Fairly. I will say too. It depends on the day. That generation, the parents' generation too, is a more private generation, right? You think about late boomers.

even into the generation before them. So in her defense, they could just be very private people that don't feel comfortable regardless of whether they have a relationship or not. And her reasons were good, but I think they can get their reasons why. I think they can plan for it either way. You know what's fun? People call us

Like this. They want to know what we think. But you know what? We want to know what our audience thinks. We have a new audience coming in all the time, growing audience. And it's really important if we're going to serve you that we hear from you. So our listener survey, it's an annual thing we do. We need to hear from you. We really do serve you well. We want to hear from you. So tell us what you like, what you don't like, the whole nine yards. Be nice to Rachel. You can be mean to me. It's okay.

text the word SURVEY to 33789. Text the word SURVEY to 33789 or go to ramsaysolutions.com slash SURVEY and you can click on the link in the show notes on your podcast app or YouTube. And here's the deal. If you sign up today to tell us what you think, you're entered to win a $500 gift card. So there's a little bonus of motivation. All right. We want to hear from you, America. Quick break and then you hear more of us. This is The Ramsey Show.

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. Most people are concerned about price, but term life rates have never been lower. Having 10 to 12 times your income on a 15 or 20 year plan is in many cases just plain cheap. Second,

Life insurance through your work is not enough, especially since these plans 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 costs add 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.

Welcome back to the Ramsey Show. I'm Ken Coleman and Rachel Cruz is joining me. We're here for you, America. You got a question about your money? You got a question about your income? That's what you got today. You got two people who love to weigh in on that and we work together to help you. So, 888-825-5225. That's the number. Let's go to River. Now see, that's a great name.

If my name was River Coleman, I'd be far more credible. Exceed the success. I have a lot more Instagram followers as well. But alas, my name is Ken, but I'm already jealous. River in Columbus, Ohio. River, I'm jealous, but happy to talk to you. How can we help?

Hey, what's going on, guys? So, yeah, I kind of have a mess. I'm 20. My fiance is 23. Together, we have roughly $151,000 in debt. That's between student loans and an $18,000 auto loan. That's it? Just the student loans and the truck? Yes. Okay. That's it. My student loans, I have...

I think it's like 33,000 and the rest is her. I think she has like 120 some thousand. But yeah, it's confusing. It's all through Sally Mae. Yeah. What is what was her degree in? So she's a multimedia journalist. She's a news reporter at a news station in West Virginia. What did she get her degree in?

Mass media? Multimedia. Did she go out of state to a private college? Where did she go to school? She did. Yeah, she did. And how much is she making now? So she's making $18 an hour. I'm making $18 an hour. But her commute is like an hour and 20 minutes. Oof. Okay, so how much are you guys bringing in a month after taxes? Like what's hitting your paycheck right now? Or like what's hitting your bank account, you guys together? So...

Together. So we aren't joint accounts yet. So right now, my situation, I'm bringing in roughly $2,400 a month. She's around the same. Okay. What are you doing for work? So I work at a credit union and yeah. Okay. What do you want to do? What are you aiming for?

You know, I'm not really sure. I'm still in school. I'm a junior in college right now getting my bachelor in business administration. I'm paying this semester out of pocket trying to cut the loans out. And the reason I ask the question, I'm not trying to solve that problem right now, but I am trying to figure out what can we do to get more income? Because that's a part of this equation. Well, and she's not making...

I mean, neither one of them. Yeah. I mean, you're very limited right now. And that's a part of this equation. And I did just get I did just get a promotion to I'll be making twenty one dollars an hour starting in the middle of February. OK, so help Rachel out. She'll walk you through this. But I know you guys are engaged. So what is your debt? What is yours? Is yours one fifty five or is that both of you?

That's together. But you guys aren't together. And so just to help Rachel separate what your debt is versus the fiance's debt. Well, yours is $33,000 student loans, right? Oh, you got that? Yeah, and hers is $120,000. Yeah, mine's $33,000 student loan, $18,000 truck.

Okay, I got that part. I misunderstood. Okay, got it. Never mind. All right. So we got the breakdown. Yeah, but is she making close to what, $30,000? That's what I'm trying to understand. Yeah, she's making roughly like $31,000. Okay. So, I mean, here's the fast track of it all, which you're probably not going to like. But if getting out of debt is your number one...

You guys both have to make more money. And if this is her dream and what she wants to do, is she only on air for a certain amount of time? Like, what are her hours? Is she an early morning anchor or reporter, you said? No, she's midday. Midday. She's midday. She's 9 to 6. Okay.

There's no money in that industry at this point. Well, that's how I mean, like, I don't know if for a short term, there's a shift and you go find something making 45, right? I mean, like you're just like even $15,000 more with a side hustle, which I know crushes her dreams. And this is, this is not to pick on your wife River or you, but America, this is, this is what we're talking about. We talk about student loans. She took out $120,000 in student loans to make 35,000.

$30,000 a year. With very limited opportunity. I mean, honestly, and so there is a...

a lesson to be learned always. But for you guys, I mean, you're in it now. So obviously you can't go backwards. So, I mean, if I were her, I'm like, you know what? I'm going to do anything for two to three years to get this cleaned up. So River, is she one, and by the way, do I understand this and support this? Yes. Is she one that goes, I want to take my shot and I want to go to New York, LA. I want to be in a top 10 market one day. Is that her thing? Is she really ambitious for that? Is that a clear goal?

She really is. Okay, then. So here's my point. So if I were coaching her one-on-one, I'd say, all right, so you do have to stay in the game. However, you are going to have to work other jobs, do some freelance publicity, do something when you're not on set to increase her income. She's got to at least look for a 25% to 40% bump through some type of

industry adjacent work in this season. I wouldn't recommend she drop out if her goal is to move up in market. Which, by the way, that's how you make more money is you go from Columbus to San Diego, San Diego to Miami. That's the ladder. But that takes time and there are limited positions.

That is a hang on and be really, really good at your job. And I would go, I mean, I could be wrong too, but I feel like that's a hard industry to have any level of freelance. You may be better waiting tables from seven to ten at night. You know what I mean? Like, yeah, yeah, yeah. So...

So it's just, it's the income problem river for you guys. I mean, you just have to up your income. It absolutely is. So, and here's a question. So the loans, her loans are broken down to like four or five different loans and they're $22,000, $20,000. They're attached with a 12, 12% interest rate. I was thinking, you know, it's probably best to, you know, refinance these loans, get it consolidated. Yeah.

You know, kind of go that route. Yeah, you can for sure. I mean, I would say that's the only type of debt I would recommend consolidating are student loans because you usually don't go back into that debt. A lot of people play this game because I think math is their problem and interest rates are their problem. But their problem really is it's the behavior, right? The secret of getting out of debt is not the small interest rate, even though that can help you to a degree.

The real secret of getting out of debt is this intensity, this gazelle intensity we talk about where it's like no lifestyle, nothing, you're working insane amount of hours and you just get it paid off, right? And so I think that I wouldn't put a lot of hope. But again, I would. Yes, if you guys can get a better interest rate. Again, it's the one type of debt. I would be okay with you guys consolidating. But don't have your hope.

That because you consolidate It's going to be okay Do you know what I mean? There still needs to be that level of grit with you guys In this because But yeah, if you get a better interest rate For sure, River, I think that's a fine move But again, math is usually not the problem And I always want to reiterate that When we're getting out of debt It's not that, it really is This hope in who you guys are as a couple And teaming up and saying Okay, this is what our life's going to look like for the next three years

Yeah, I appreciate the call, River. And again, you guys can do this. It is not easy, but it is simple. For sure. And I mean, to just loosen the burden a little bit, that $18,000 truck, it's right on the border of selling or not. But if you can get that down, even if you're underwater, $2,000 to $3,000, you're going to be able to do it.

and go get a beater. I mean, that's just, that's taking a chunk off too. So be considering that, River. We didn't ask, but if you look at the data, Rachel, I believe the number is the average car payment in America right now is like north of $750. Yeah, a new one is, yeah, $781. So let's just play off of that. So let's just imagine that his car payment is somewhere between $500 and $700. I don't think that's a stretch. No, no. That's a massive raise. Yeah.

for a young man like this who's about to get married. That's right. If you split the difference, it goes $600. I don't have to take my boots off to add this one. That's $7,200 a year. $600 times 12. Yeah, you know, I don't have to use my digits. I can do that quick multiplication. I paid attention. I paid attention to that level. Old man Ken jokes. Yeah, I know. You like them once you get them. I know.

Once you get them, she likes them. Sometimes I have to explain it during the commercial. River, we're cheering for you all. Come on, River. You can do it. Keep on flowing. This is The Ranch. People tell me about their experiences with big banks all the time. Bad service, fees that nickel and dime them to death, and predatory lending that tries to catch them in never-ending cycles of debt. So if you're ready for a bank that puts people over profits...

Check out Fairwinds Credit Union. I recommend Fairwinds because they share our Ramsey values of helping people get out of debt and live generously. If you go to fairwinds.org slash Ramsey, you'll see the combined checking and savings account bundle they

They created just for Ramsey fans. This account bundle is designed to help you take control of your finances and stay out of debt. And Fairwinds also has a great mobile app that's safe and secure so you can manage your transactions with peace of mind. Fairwinds has been helping people avoid big bank traps for 75 years.

So go to fairwinds.org slash Ramsey to learn more. It's easy to join no matter where you live. That's F-A-I-R-W-I-N-D-S dot org slash Ramsey.

Welcome back to The Ramsey Show. Alongside Rachel Cruz, I'm Ken Coleman. We're thrilled to have you with us. The phone number to jump in is 888-825-5225. Today's question of the day is brought to you by WhyRefi. WhyRefi refinances defaulted private stocks.

student loans. Defaulted means when the borrower cannot make the required payment. So if that's you and your student loan, contact Y-Refi. They can offer a low fixed rate loan built for you. Go to Y-Refi.com slash Ramsey right now. That's the letter Y-R-E-F-Y dot com slash Ramsey. It may not be available in all states.

Today's question comes from Chase in Missouri. I'm new to investing and was playing around with the investment calculator on your website. I found that if you invested $1,000 for my baby at 10% and never put any more in, she could retire at the age of 70 with over $1 million. Not $100 million, $1 million. Is that right? And if so, why isn't this common practice?

I don't have my investment calculator pulled up, but over 70 years, are you going to pull it up, Kim? I'll do my best. Yeah, do. Yeah, Ramsey Investment Calculator. Yeah, I mean, compound interest is powerful. And over 70 years, I probably wouldn't be surprised if you put no more in at 10% of a rate of return. And so why isn't this common practice, you ask? Well...

I mean, there's maybe a couple of reasons. One, I think parents don't have $1,000 to put in. I think there's a level of margin that people are trying to find. I mean, also, when you are investing for a child...

The recommendation of you having to be really over it because a minor can't open up their own account, so it would be your name in it and being able to transfer it to them long-term is an option too. And investing, I would say too, $960,000. So here's what we got. I put in the current age of one.

He may be thinking zero, but I just did quick numbers. Retire at 70, you only put $1,000 in, and you never contribute monthly. And on this number, you are getting an annual return of 10%. So I could drop that to 8% for the Cenex. And let's see what that does.

So it's a lot different, $245,000. So there you go. But yeah, the question holds. Why don't more people do it? Because they don't understand compound interest. How many years or years have we taught that simple lesson of compound interest? And just most people don't even think about it. Yeah, and I think in investing overall, it can be an intimidating factor of money. And if you don't feel like you fully understand it, you're less apt to probably go into that world, I would say. Yeah.

But yeah, there's power in that. And then always, I think about 40% of Americans can't cover a $400 emergency in cash. So to have $1,000 that's not for you and your emergency fund, there's a lot of people that don't have it. But I agree with you, Chase. By the way, I adjusted the number to zero. I didn't know if the thing would let me do it. So a newborn baby, it would get to $1,065,261 at the age of 70 at a 10% annual return. So there you go. There you go.

It was correct. You know, I usually let the money personalities do that, James, but I feel pretty good there after a test run right there under pressure. I'm so proud of you. I'm glad you did it. I'm having fun with this, folks, because if I can do it while hosting a show with my squirrel running around in my brain,

you need to be going to RamseySolutions.com and start plugging it in. Use the investment calculator. Imagine how much fun you can have with it when you're not hosting a show while doing it. So it's great. I think that was a wonderful exhibition there. Madison is up in Phoenix, Arizona. Madison, how can we help today? Yeah, my question is, first of all, thank you for taking my call. Of course. My question is, should I pay off my house while continuing to look for work?

Tell us about the look for work first, and what is your bridge right now as far as income? Savings you're living off of? Give us a quick picture. There is no income. Zero income. There is no income. Okay. Correct. I had been out of work almost a year, so I had set money aside. I've been following the Ramsey program. I set money aside enough to get me through college.

whatever I needed to get to, and that year is coming up. So I have... Have you been paying off your house through that emergency fund that you had set aside? Meaning... That was just money for housing and bills. I have a separate emergency fund as well. Oh, okay. So what I'm asking you, though, is I'm just curious, that money you had set aside, had you...

Been paying your house payment, paying it off, working on that up until this point? Through that fund? Yes. Ah. Yes. Well, no, I wouldn't be doing, I mean, we would tell you to slow down, pause everything. You've got to get some employment here. I love that you had an extra rainy day fund. Yeah, how much do you have saved, Madison, total? I have, let's see, what were the numbers here? I have about almost $4,000. That's your emergency fund?

Well, so there's $1,900 left for what I had just for the housing expenses. Right. And then I have $2,000 in an emergency fund. I just broke it down individually. Okay. And you asked if you should pay off your house. How much is left on your mortgage? $72,000. What would you pay it off with? $72,000.

Are you saying putting extra towards your house above the mortgage? No, paying it off. No, that's the right question. Madison, you don't have any income. Well, where would you get the $72,000 to pay it off? So that's, and I have enough to pay it off as well. Okay, you buried the lead. So you have $72,000 somewhere else? Yes. Okay. How much money do you have total? Like what's your net worth?

Cash. Sorry, not net worth, just cash. Okay. So I don't have a calculator for me, so I have $72,000, $1,900, and $2,000. Okay. Where is the $72,000 currently? Is it investments or just a savings account? It's in savings. Okay. What were you going to use that for? What was that fund for in general? I had designated it for...

I had it designated in separate accounts. So, say, for example, I needed a car. Okay. I don't know what I could pay off a car. Okay. So you had that. Do you have any retirement? I do. How much do you have in that? About $250,000. Okay. Good. How old are you? I'm in my mid-50s. Okay. Okay. That's going to be okay. If you were to never touch that, by the time you're in your 70s, that's going to be a really nice number. Here's what I'm confused about, Rachel.

Madison, why aren't you working? I understand it's hard sometimes to get back into the market, but to go 12 months with zero income doing something and you're whittling down these other two accounts, I don't understand why you're not working. That's what I don't understand either. No, no, no, no. Well, let me rephrase. What field were you in? Medical, and I also have a degree in law enforcement. What were you doing? What was the last job you had 12 months ago?

I was working in the medical field. Doing what? As an administrative, I held an administrative role. Making how much? Around $50,000 a year. Okay. My point is you don't sit around, and not that you're sitting, let me rephrase that. You don't just keep applying and do all this, and if nothing's happening, you don't just keep pulling money out of the savings account. I'm proud of you and glad you had it.

But you need to start to happen to life, and life is happening to you. I don't understand with that skill set why you aren't applying for multiple different types of jobs. I don't care if it's a shift manager at Home Depot or at Banana Republic or I'm driving, I'm doing something. You have got to be bringing in income because I guess you don't need a whole lot. Like what is your – what do you need to actually survive each month to cover your bills? We only got about a minute, so give me a real quick answer. Yeah.

I would say $1,300. You need $1,300 to survive. Correct. Go make $1,300 in February doing something. Now, I want to bring it back to Rachel to answer the bigger question.

She's got $72,000 in the bank. No, I wouldn't until I have a stable income coming in. I agree. Yeah. Okay. Yeah. To make sure that you can eat and everything. But yeah, I would... You know, you've set yourself up really well, Madison, and I just don't want you to continue to be in this rut that you've been in to a degree for a year. Because what's happening is it's just like everything's shrinking, shrinking, shrinking, shrinking, shrinking, shrinking. And I want to stop that momentum and let it go the other way. And to Ken's point, it's not like a...

Crazy amount. $1,300. That's the great news. You can do this, Madison. And you know what? There's lots of things that you can do. Hold on the line, Madison. Can we give her a copy of my book, The Proximity Principle? Read this and do this and go get paid. This is The Ramsey Show.

You've got a lot to keep organized in life. Kids and calendars and carpooling and cleaning. I mean, it is so much. That's why you need a knockbox. That way, if something happens to you, you leave your loved ones with happy memories and not a huge mess. Knockbox is a complete system to help you organize your accounts, personal history, estate planning documents, and all your other info in one place.

I'm talking about everything from life insurance policies and social media accounts to your dog's vet, divided into 15 simple categories. Plus, they've got checklists that tell you what to add to each folder so your family won't have to guess where everything is. So start getting organized today at knockbox.com slash Ramsey. Your family will thank you. That's knockbox, N-O-K, box.com slash Ramsey.

Welcome back to The Ramsey Show alongside Rachel Cruz. I'm Ken Coleman, and we're here for you, America. Thank you for being with us. Hey, we just had a wildly successful virtual event last night at...

And that leads me to tell you we are coming back with part two of what was a successful event last year. It's a two-night virtual event known as Investing Essentials. This is with Dave Ramsey and George Camel. This was a wildly successful event last year because people know that investing, Rachel, is very confusing. It's intimidating. And so in this event, we're going to cover everything through maximizing your 401k and mutual funds. And then we're going to cover everything through the

And then Dave is going to give his personal playbook on how he invests in real estate. So this is not an Instagram reel with eight cuts and cool music designed to get you to click a link. This is a tried and true investing strategy that Dave has done for many decades and

So that's also a popular part of this. It is happening March 4 and 5. So put that on your calendar or go ahead right now to ramseysolutions.com slash events, ramseysolutions.com slash events, and you can sign up. Tickets start at $199, March 4 and 5. So that will be fun. Love to see you there. All right, Bobby's up in Atlanta, Georgia. Bobby, how can we help today?

Hey guys, how are you? Good, how are you doing today? Doing alright. So, my fiance and I are getting married in April. Alright, congrats. Thank you. She was born and raised in Scotland and she still lives there. So we've been long distance for about almost eight years. Where in Scotland? She's on the west coast, so she's basically right on the water about 40 minutes from Glasgow. Oh man, I love Scotland. Are y'all going to move there? Yes.

No, she's actually moving here to Georgia. Well, she's really trading it in. Downgrade for her. Bobby, you must be a very convincing or charming young man. Maybe very handsome, too. I'd do my best. Or at least I've fooled her well. That's right. Hey, real quick question, and we'll get down to the important stuff. What America wants to know is the wedding in Scotland, and are you going to wear a kilt?

So yes, it is in Scotland. And? It's right on one of the locks there and I am not wearing a kilt. How many kilts will be at the wedding though? I'm a little disappointed. No, I bet a lot of the attendees will wear kilts. True? Actually, you would be surprised because half of her family is English and of course all of my family is American and so there's only probably going to be 25% of the people there wearing kilts. Well,

Well, you know, I'll take it. And Bobby, I know I'm not getting an invite, but if I was to be invited, the Coleman line of crests or your pat, you're like the plaid. I would wear one. Sure.

I really would. With the high socks, I'd commit to the whole outfit. I would bagpipe down the aisle. That's great. We are having bagpipes down the aisle. There is that. Bobby, listen. I could be talked into hosting the reception. Email my team. We'll talk about it. We'll see if we can make it work. All right, Bobby. This is great. So you guys grew up. Different money culture, the way you looked at it? We don't know. Well, that's what he said. No, he said that she grew up in Scotland. Yeah.

It's different. Okay. Am I right, Bobby? What's your question, Bobby? She's correcting me. I know where he's going. So, yeah, she doesn't know what a 401k is, doesn't know what a Roth IRA is. Man, different culture. We didn't notice the issue. She's sort of familiar with the baby steps just from what I've talked to her about it, and she knows who Dave Ramsey is. But we're...

I'm trying to figure out what's the best way to kind of get her on board with the baby steps and kind of, she's a little bit nervous or hesitant about the intensity of the baby steps. Sure. Okay. So there's that. And then the culture. Yeah, for sure. Okay. So I would start high level with you guys and just being agreeing that,

value systems at which money will play in on the relationship. So a value system would be when we have money or do we want to be giving some of this money? Is that part of our plan? Do we, how much is savings something that she gives her a level of security, right? Is debt a tool or is it a disease? Yes, yes. How is debt playing in? So less like, I would go less baby steps and

And more just a little bit of that value system, because that's a human thing, not an American thing. So you can look at money because they have money in Scotland. So it's just like, let's together get on the same page. Do they have money over there? Thank you for revealing that. And then how we implement it.

Over here, how does that look? So if we both agree, yes, savings is important. She may be more of a spender naturally, right? And that's okay. Opposites attract. But yes, we want to be saving for the future. We want a good retirement. So what's the best way to do that in America? A 401k, a Roth IRA, right? There's these vehicles at which you can do that. And if we have debt and we want to live without debt and not have payments...

because that gives us peace and because we can use our income to go on great vacations and use our income to save for the future and to give, like, that's why we want to be out of debt. Right. So you kind of start high level. And then from there, the baby steps is just a plan to get you from point A to point B. Do you guys have debt? Right.

We do not. We are debt-free. Oh, that's great. So that fast-forwards everything. For sure. So now it's emergency fund, right out of the gate when you guys get married? Yeah. Is she agreeing that you guys want to work together as a team? Does she see this as a topic of life to say, like, yeah. Joint bank account? Yeah. Yeah, absolutely. We're going to do pretty much everything together. Okay, yeah. And we're going to do it.

Kind of right now, she's kind of the breadwinner. I'm currently not employed because I'm finishing up my flight instructor rating. Nice. And so I'll be a flight instructor pretty much immediately after we get married. What will your starting salary be? Do you have any idea?

So it's going to be an hourly position, but ballpark, I'm hoping around 50 grand. Good. 35 would be like the absolute, absolute low. Okay. And how much will she be making?

We don't know yet just because we don't know what she's going to be doing. What's her profession? Yeah, so she has a degree in international event management. So that kind of means she can do weddings. She can do corporate events. Let me tell you something. Atlanta, if you guys are anywhere near the Atlanta area, that's a big event town. So that's good news. It's good news for her. Yes.

Yeah, so she's done everything under the sun, whether it's social media or event planning or serving. Like, we're totally not worried about her finding a job. Amazing. Okay, so how much are you guys bringing in to the marriage, just money-wise? Like, how much does she have? How much do you have?

Um, so I, on my side, we have about 38,000 in savings and that comes from, and that comes from an inheritance. Okay. And then she's bringing, she's bringing probably over just shy of 10. Okay. Um, but both of us have very little, um, savings.

expenses because we both live with our parents right now and it just didn't make sense for us to move into apartments each and then have to move again. That's smart. I love that move. That's great. And so when you guys get married, I guess you'll be renting probably for a year or two. Is that what you're thinking? Yes. Yep. Okay. That's the plan. Perfect. So yeah. So I mean, I think you guys are probably more on the same page than you realize. So I would sit down together and

and just say okay yeah let's um let's like figure out you know the next couple of years and what we want our goals to be and we we have a goal of making 100 grand 50 and 50 or something right kind of have like an income

you know, goal. And then from there, we want to put some away for retirement. I think she'll love the emergency fund concept. Yeah. You know, like just big picture. I thought your advice was really great. Well, thank you, Ken. I mean that to like, they don't need, they're already advanced in the baby steps in that. Yes. Like they're going to start at baby step three. Yeah. And we build that. I think any woman, any human wants that safety. So explaining that concept to her, you're already halfway there. It looks like.

And so the investing part that Rachel's talking about, I mean, and then saving for kids, college and all that stuff, I would just ease her into it, man. And just focus on the positive vision stuff. Cause you don't have a problem that you're trying to fix right out of the gate. I thought it was great. Yeah. And I think, you know, making it a goal for a house. I mean, you guys are in a position that your emergency fund is pretty much done, I think. And then beyond that, like, okay, let's like run some numbers and,

And dream. Winston, I just did this last week. And it's always a fun thing to do where you're like, all right, let's just dream. How much do we think we want for a down payment? And then you put it in Excel or a calculator or whatever it is. It's like, how much do we need to save every year? How much do we need to save every month? And you kind of start having these goals towards these dreams that you guys...

A life that you're building together Which is beautiful Hold on the line Bobby Taylor's going to pick up And we're going to give you Financial Peace University For you guys to watch These lessons together Because that would be Really helpful for her So fun Yeah just to kind of Get these concepts Of American way of doing money By the way A nod to our Scottish friends If you look If you're watching You see this green sweater I have on You can't see below the desk But imagine me In a blue and green kilt Right now That matches a sweater I think it would look great I'll be honest This is The Ramsey Show

This is the Ramsey Show. Thrilled to have you with us. We're here to help you win with your money, win in your profession, and win with your relationships. 888-825-5225 is the phone number. Alongside the lovely, talented, and my friend Rachel Cruz, I am just Kent.

But I am Knuff, they tell me. Ken Coleman, your host today. There's a little Barbie reference. Did you catch that one? I did. I thought I appreciated it. Gotta pay attention, folks. Thanks for bringing in just the pop culture. Yeah, I try. I try to embrace the pop culture as much as I can. It's pretty good. It's good. Being middle-aged. All right, let's get right to the phones. Richmond, Virginia, my old stomping grounds. Used to live there when I worked for the governor of Virginia, in case you were wondering. Jake is there. Jake, how can we help today? Hey, guys. Thanks for taking my call today. I appreciate it. You bet. What's up?

All right. So me and my wife, we have a question about paying off our debt. So currently my wife and I were in our upper 20s and we're facing quite amount of student loan debt. It's about $150,000. Now we don't have any other debts and we've paid off a good amount so far. We've paid off about...

$30,000 in total. All right. But we recently came across an amount of money in our savings. We have $30,000 saved up. And what we really would like some guidance on is how much of that to apply to our loan. You know, we're in the stage of life where we kind of want to think about a family, possibly a home, some car issues coming up. But we know that we have a good amount we want to apply to this debt to get it taken care of. So I'm going to get you guys guidance on what

What you think about putting that towards the debt. Sure. How much do you guys make a year? So gross, we make together around $200,000. Hey. Nice. Very nice. So what's your plan as of now for the $150,000 to be paid off? How fast do you think you guys can do it? 18 months? Well, yeah, we were hoping within three years. 18 months would be ideal. Yeah, I mean, if you guys lived on $70,000, and then I'm thinking if you apply this $30,000, you could...

you could knock it out pretty quick. So to answer your question, Jake. He just swallowed really hard. Did you hear that? He was like, what? What? Because, yeah, $200 is gross. So you guys are probably coming in at, what, $130 after taxes? Yeah.

Probably right around there. Right around there. And if you lowered it to 120 and you guys lived off of 70, that would take you two years. Maybe if you did some extra work, incomes go up in general. Yeah, 18 to 24 months. So yes, to answer your question, I would apply $29,000 of that $30,000, keep $1,000 for an emergency fund, and I would go all hands on deck. I would not be thinking about a house while you have this debt.

If you guys decide to start a family, which we encourage people that, yeah, if getting married and starting a family, don't not do those things because you have debt, right? So if you guys decide in six months, like we feel like, gosh, it's time to start a family, then if that's the case, I would pause everything.

not pay extra on the student loans, just keep them current and be piling up, you know, a big savings. And in nine months, you guys can put a lot in savings when you do that. And then, you know, when baby comes and everyone's good, just apply that nine months of savings to back to the debt. So that would be a time deposit. And then, you know, as car stuff starts coming up, and if you know, like, you know, a good amount ahead of time, then you...

But if you don't want to replace a car while you have debt, I wouldn't. I agree. That's what I was going to ask, though. I would drive those things all the way through. What do you mean by car issues? Can you be more specific? Sure. Yeah, my car currently has – my wife's car is good. My car currently has around 350,000 miles, and it's kind of gone out on me a few times this year. So I feel like I'm really riding it to its last leg. You really are. But I feel like that might come up soon. You think? 350,000 miles? What brand of car is it? Yeah.

Yeah, it's a Toyota. It's been pretty good to me. Those Toyotas. We're a Toyota family. Toyota, Lexus, in that family? Best cars you'll ever have. I'm not trying to endorse it, but you hear that a lot. Of course, our friend George would say Toyota. No, Toyota. He doesn't know how to say it. And Hondas. We'll give Hondas a shot, too. Rachel, I'm glad we brought this up because I think this car is literally a moment away from dying. How much could you sell it for?

what uh i've been i've been told 2 000 i've already tried 2 000 i've been 3 000 1 000 how much less than a thousand yeah you're out of your mind three thousand dollars people may want a great toyota that has lasted jake from richmond i'll bet you it looks like it's got 350 000 miles on it too am i right jake

So Jake, so what I would do for real though, if you, if you feel like it is on its last leg, which I get 350,000 miles, it probably is trying to rip somebody off for $3,000, but I would go get a $6,000 car. I would not go spend 20,000 on something. Go get a beater again that maybe has 200,000 miles. And for 18 months, two years, just drive that car.

And then after you guys are out of debt, that's when you can think about stepping up with cash into something else. But I would use as much of this money to put towards the principal of your student loans because that's going to help you guys so much. I mean, it really will from a mathematical standpoint. So I'd rather drive a crappy car

Oh, no, no. This is my favorite thing to do. Ken is on his laptop, Jake, just so I can give you context. I really enjoy this. And he is on a car website. I got used cars for sale in Richmond, Virginia. You in the greater Richmond area? Look at that $4,000 car. Yeah, right around there, yeah. Now it's a Dodge. We got to get the guy a Toyota. I'm not going to give him a Dodge Avenger. Okay. But for crying out loud, okay. Okay.

I mean, listen, some of these cars, I want to make the point that it's not a complete beater here. Let me just, this is worth, okay, here we go. A 2014 Chevrolet Impala. All right. 10 years old, 4,000 bucks. 4,000 bucks, 142,000 miles. It's a Chevrolet. Yeah, there you go. It's not the greatest brand in the world, but they're not expensive to fix either. That's true.

And having Impala is a famous song, famous line. I'll let the audience figure that one out. But I know you don't know it. I'll share it during the break. It's too much to try to explain to you. It's an age thing. She just doesn't get it. But anyway, that's the example there. And I really am having fun with this, but people don't realize what you can get for under $5,000. Yes. And let's be honest. He's driving.

A turd. A Toyota. It's done its job. Yeah, it has. But it's going to die soon. And so for four grand, you get the Chevy Impala. Is it good looking? I'm not going to lie to you. It's not. It's not different colors. It's just a silver car. You would never know. Yeah, I'm saying the Impala, the 2014 Impala is not a car that you'd buy for status. Sure. Yeah.

but that's okay. And that's why you do it. That's why we do it. We get it from A to B. A to B. That's all we're looking for. Yes. For this time period. So, so yeah, so I would put as much as you can, Jake, that you guys feel comfortable with again with the car replacement and an emergency fund, everything else needs to go to this. And then you guys are in a perfect position to Jake to, to go and earn some extra money on a side hustle before kids get

Absolutely agree with you. It is the time to do it. It really is because, you know, and we talk to families all the time that get out of debt with kids, right? I mean, that is a lot of our audience. But it's hard. Like when you have a full day of work, you pick up your kids and then you have to go to another job and a spouse has to stay home and do bed. I mean, like it just gets really complicated and it gets more and more tiring and more difficult. And so you guys are in a perfect season.

for six, eight months. Like, go work extra, right? Bring some of that in. What do you got for us, Ken? James, I got a snappy-looking 2012 Mazda 3 Touring. Only five grand, 130,000 miles. And it's got a nice little blue color to it. You kind of feel good about yourself zipping into wherever it is you got to go. So, again, I make the point. And quick commercial break. I'm going to teach Rachel about this famous song lyric that involved Impala. And we'll be back. This is The Ramsey Show.

Self-defense can be a complicated issue, but there's one solution that makes it a lot easier. A Burna launcher. Burnas look like firearms, but they're not. They're non-lethal self-defense tools. They shoot chemical irritant projectiles that stop a threat in its tracks without the fatal consequences of a gun.

Berna launchers have been vetted by government agencies, police forces, and private security agencies worldwide, and no permits or background checks are required to buy or own one. Plus, Berna's are lightweight, easy to carry, and give you the power to protect yourself and your family, even if you're not comfortable with traditional firearms.

Not to mention, they have more than 15,000 five-star reviews. And right now, Ramsey fans can get 10% off an exclusive bundle, which includes a Burna pistol, CO2 cartridges, and ammo. And other Burna products like safety alarms, defense sprays, and body armor are also 10% off for our listeners.

Just go to berna.com slash Dave to learn more. That's B-Y-R-N-A dot com slash Dave.

If your holiday ham tends to last longer than your New Year's resolutions, then I got a fresh challenge for you. Make this the year you take control of your financial future with an actionable plan. Sound intimidating? You don't have to do it alone. SmartVestor Pros are financial advisors who can walk you through what you need to know about retirement planning, wealth management, and anything in between. Find a pro near you at RamseySolutions.com slash SmartVestor.

SmartVestor. Ramsey Solutions is a paid, non-client promoter of participating pros. Learn more at RamseySolutions.com slash SmartVestor. Welcome back, America. You have joined the conversation here on The Ramsey Show alongside Rachel Cruz. I'm Ken Coleman. Excited to have you with us today. Taking your money calls, your income, profession-related calls, because that goes together. Let's get right back to the phones. Madison, Wisconsin is where Tyler joins us. Tyler, how can we help today? Hey, Ken and Rachel. Thanks so much for taking my call. You bet.

Yeah, so my wife and I are about $42,000 in debt. And after watching Rachel's message at Fresh Life, it really kind of motivated us to really go hard at the debt. And so, yeah, we're very thankful for that because that shifted our mindset a lot. And so one thing we're going to do, and we were kind of going down this path anyway, but we're selling our house that we're in right now. And initially our plan was actually to...

sell our house, buy a new house in a different area. And now we decided we're actually going to sell a house, move into an apartment because we're going to net around 200,000 ish with the sale of our house. Oh, wow. Okay. And,

Yeah. And so basically we're trying to figure out the best way to handle that because I think the obvious route is to take that, throw everything at the debt that we have about 42,000. So take 42,000, throw it up to debt. That would leave us with about 160,000 left. And ultimately we do want to buy another house in one to three years. But I just don't know the best way to handle how we handle that money as far as do

Do we put the rest, you know, aside for down payment? Tyler, can I ask why are you guys selling to move to a different area? Yes.

Yeah, we moved. We got kind of lucky as far as like timing for this house and we bought it in 2020. And yeah, we just we moved here for my wife's job. And honestly, we hate the area. My wife's job, she's not working at that job anymore. So it's the location isn't relevant for us. I work from home. So really location doesn't matter.

And so we're just kind of hoping to move to an area that we like a little bit better. Okay. How far? I'm just curious from where you guys currently are to where you want to be. Is it like a 30 minute difference or is it like a 10 minute difference?

It's about two hours. Oh, like a totally different area. Okay. I'm sorry. I got you. Yeah. Okay. That's great. So, um, so yeah, Tyler, I would for sure. Um, yep. When you guys get, um, that 200,000, I would, yes, apply it to the 42. Go ahead and pay off your debt that day. I would set some money aside at this point for you guys. Do you have, do y'all have any kids?

Yeah. Yep, we do have a nine-month-old baby. Okay, okay. And you guys, do you guys both have pretty stable jobs? My wife is a stay-at-home mom, and I am self-employed, so it's

It's pretty, my income is pretty variable. Okay. So for, because of that, because of the kid element and it's on one income and it's a variable income, I would probably just put aside six months of an emergency fund. We always say three to six months, but three would be, you know, if it's, if you're single or if you don't have any kids and you both have pretty stable incomes, you could do more of the three, but because it's a little bit just to give you guys some extra safety. So I would figure out your monthly expenses, multiply it by six and out of that one 50, you

Put that aside and I would just open up a high yield savings account. This is my husband and I did and label it emergency fund and you don't touch it. And then I would leave the rest, which would be what? How much do you think an emergency, a six month emergency fund would be for you guys? Yeah. So we actually, good news is we actually already have that taken care of.

But it's about $30,000. So yeah, we actually have that already apart from the $200,000. Oh, wow. Okay. That's fantastic. Okay. So yeah, so the $160,000 that's left, then I would just keep it in a high-yield savings, honestly, Tyler. I would not invest it because you guys are going to use it for a down payment in the next two to three years at the latest, probably. So yeah, if it's not more than five years, if it was more than five years, I would invest. Okay.

But you guys are in a position and you may even pull the trigger faster, you know, if you see a great house. Because the sooner you get in the market, honestly, the better it's going to be. And you guys will have a great down payment. So I would just put it in a high yield savings and just let it be there. That's really helpful. So this might be a dumb question, but I was kind of doing research into that. Like what classifies something as a high yield savings? Like we have...

are seeming to come right now. I don't know if it's classified as that or not, but it's... Yeah, it'll be pretty apparent. It'll say high yield. So high yield savings, a money market account, and that, it will say it. And, you know, just, this is not a plug. It's just what we use. We use Ally Bank. Usually an online bank is going to be better for high yield savings. You're going to probably get a little bit of a better rate of return versus a brick and mortar standard bank. So we have our checking with a kind of a local bank.

that has brick and mortar. And then we have an online high yield savings. We just have it through Ally. I know there's a couple of companies that are out there, but you can even just Google and honest and and I don't know, there's there's a lot out there. Just make sure that there's no because

Because some banks, if they're online, will charge you weird fees. So kind of look into the fine print and just get a great option. But something like Ally is totally fine. Yeah. Appreciate the call. And good job. Good job, young man. I mean, taking great care of your family. Love that you got all that cash. And now you're going to be debt-free pretty soon. So don't talk yourself out of that. Don't let anybody talk yourself out of that. Rachel set you up really well. So really, really happy for you as you kind of start a new chapter. Really fun.

Let's go to Columbia, South Carolina, and Kevin is joining us there. Kevin, how can we help today? Yeah, hey, thank you guys for taking my call. My question is, how do I pull a large sum of money out of my retirement investments to build a home? I'll give you a little back story. My wife and I are both over 59 1⁄2.

She's retired, draws a pension of about $42,000 a year. I make about $142,000 of my salary. And we have got about $1.85 million in investments, some pre-tax, Roth, and then some non-retirement investment accounts. And in that $1.85, there's roughly $200,000 in cash.

What I'm hoping to do is try to pull some money out of my retirement investments to fund the house, but not cripple myself in retirement. How much money are you thinking about pulling out?

I need about $750,000 for the purchase for the construction of the home. So part of that would be funded by the $200,000 in cash. We're still leaving us with a fully funded emergency fund. And then the balance we would pull out of them, most of it as we could out of the Roth, and then the balance would have to come out of the pre-tax accounts. What is your current situation as far as a home? Do you own your current home?

We own our current home. We have no debt. We want to tear the house down on the property that we're on because it's the values in the land, not in the dwelling. And we want to build our dream home. Oh, on your current home. That's correct. Yeah, so we're going to just tear down what we currently reside in, move out, and then build a home here. What's the total cost of that going to be? You said $750,000 plus, plus, or is it $750,000? Yeah.

It'll be $750 is what the contract price will be. Probably 10% for contingency money. So, you know, somewhere $825 to $850, we're thinking. Okay. And have you guys run out numbers? Because that's going to leave you, you know, $1.2 left in retirement. And have you guys run numbers on that or how long you're going to be working, just making sure that you guys are in a good spot long term?

Yeah, we feel pretty good about that. We figure we'll have somewhere between $850,000 and $900,000 left in retirement investments. And then, you know, given the rate of return, you know, banking at 10%, hopefully for our opportunity, we feel like we'll be very comfortable. We hadn't anticipated pulling any kind of money towards, pulling Social Security money until we get $1,000.

or retirement age or even 70 if it permits. So we'll feel pretty comfortable. We don't have any debt. Yeah, that's great. It makes me nervous tapping into retirement funds. Yeah, for sure. And you know what, Kevin? I would sit down with a SmartVestor Pro because I would want to make sure that what you're pulling out principle-wise is

which avenue is better through like the Roths or a 401k, you know, if that's a better play or just any standard mutual funds you guys have, because some of these gains on, you know, the pre-tax gains

you're going to pay capital gains on some of that too. And so there is a little bit of a strategic play that in the next, you know, 30 seconds, I'm not sure if I'm going to be able to answer that. So, so yeah, I mean, I think from a number standpoint, you're not being irresponsible at all. But that next step is yeah. How, how and which investments to take out of. And I would talk to your financial planner. Yeah.

to make sure you're doing that from a tax perspective the wisest way. Great. But because you still got earning potential, still got a really nice nest egg that will continue to grow. And this is a part of your retirement strategy. So for using the funds that way for a paid off house, I don't think there's anything scary here, but make sure you do your homework. This is The Ramsey Show. This show is sponsored by BetterHelp.

Hey everyone, listen, we all have stories. The family and cultural stories that we were born into, the stories of the things that have happened to us, both the good stuff and the challenging stuff. And we have those stories that we constantly tell ourselves. And none of us can go back and change any of our old stories, but the world is waiting to see what each of us is going to write next.

As we enter 2025, I encourage you to examine your old stories and be intentional about the new stories that you're going to write. And I'm not talking about making goals that are going to be long gone by February. I'm talking about writing new stories that will change your life and the lives of those you love for the better forever.

And if you're like me, therapy can be a great place to explore the old stories and heal from them and begin writing new ones. If you're thinking about starting therapy, I want you to consider my friends at BetterHelp. BetterHelp is 100% online therapy, and you can talk with your therapist when it works for your schedule. You just fill out a short online survey to get matched with a licensed therapist, and you can switch at any time for no extra cost.

So start writing a new story this month with BetterHelp. Visit betterhelp.com slash Deloney to get 10% off your first month. That's betterhelp, H-E-L-P dot com slash Deloney. I still remember 10 years ago, 23 years old, I was frustrated, anxious, and flat broke. I had followed all the ways that toxic money culture had led me down from well-meaning parents and misguided guidance counselors, and it left me

with a pile of debt. But I'm telling you, it doesn't have to stay that way. Over a decade, I went from broke to millionaire, and I break it all down in my new book, Breaking Free from Broke. I'm going to show you just how toxic this money system is and how you can break free from credit scores and credit cards and student loans and auto loans and investing traps and finally live a life that you're not exhausted by, a life with more margin, more options, and more peace.

If you want to check out the book, go to ramsaysolutions.com slash store to get your copy of Breaking Free from Broke. That's ramsaysolutions.com slash store.

Welcome back to The Ramsey Show. I'm Ken Coleman and Rachel Cruz is alongside. Thrilled to have you with us. Glad you're with us wherever you are, however you are watching. Let's get right back to the phones. 888-825-5225 is the number. Brandi is joining us now in Pendleton, Oregon. Brandi, how can we help today? Hi, thank you for taking my call. You bet. What's going on?

I am single mom with several disabilities, and I'm trying to figure out how to make extra income to cover my four walls. I love what I do for work. What do you do? Divorce. I work in development for a ministry. Okay, and what kind of income do you make there? My take-home with child support and my income combined is about $2,800 net a month. $2,800 net, okay.

And, Brandy, real quick, can you try to adjust your phone a little bit? I feel like it's a little muffled. Let's see if we can hear you a little bit better if you take a look at that. Give us a little. Yeah, can you hear me better? That's so much better. Thank you. Okay, and so we know what your take-home is, how much additional income,

would be ideal, and I'm not talking some crazy dream number, but just this would give me some real breathing room to take care of the four walls. And let us know what that looks like. $2,500 a month. It works comfortably. In addition to what you're making? Yes. Okay. So we want to go from $2,800 to $5,300. Okay. That's great. I love that you have that target. Are you currently, is that an issue because of debt?

I get and disabilities and just the parenting plan schedule that I have. So I'm divorced, disabled. I've got two kids that are three and five years old. So one is in school and one is in preschool/daycare. I've sold all my assets in the divorce. I got the house in the divorce and my ex-husband got everything else.

but I have to pay him $20,000 additionally for his portion of equity. Okay. All right, so let me ask you this before we dive into the numbers, and Rachel's going to help me here as we get you out of this debt and all this. And I don't want to share anything you don't feel comfortable with, but what can you do, in other words, physically with your disabilities? Just tell me what you can do physically instead of going through what you can't do. What are you able to do?

I've been trying to do some side hustles. I do door dashing and photography and marketing services on the side, but I'm just not seeing enough income consistently to rely on that. Have you looked at freelance work because it's everywhere? Mm-hmm.

Yeah.

I agree. Listen, I would be putting all my attention right now into freelance opportunities with your programming skills because that's going to pay you top notch for your time. Of all the things that you could do, and when we look at exchanging time for money, that's going to be your highest rate. You agree with that, correct? Correct. That's what I would be doing. Because when I look at that number of increasing your income by an additional $2,500 a month, that's what I would be doing.

Now, I want to bring Rachel in. How much debt do you have? Yeah. How much debt do you have, Brandy? $64,000. $64,000. What is that? Will you break that out for me? $64,000.

That is $12,500 to my ex-husband, which he's willing to wait until I sell the house. It's not an area where we live anyways, and I need to come up with some money to pay off all this debt. Okay, pause. Pause real quick. The other big portion of the debt is the construction loan. Brandy, hold on one second. I want to make sure Rachel gets this so that I get this. The home that you're going to sell, it's not the home you're living in, and it's in a different area. Is that correct?

Yeah, I have a renter in there right now. That's part of my income. What do you stand to make? If you sold that today, what do you think you can make on that, walking away? I paid it off except for a construction loan, so approximately $110,000. Amazing. Is it on the market right now?

I'm in the works of listing it right now. I'm just waiting for the realtor to put it on the market, but I updated the listing for her. And you owe your ex $12,500 out of the proceeds of that $110,000? Yes. I owed him $20,000, but I've paid it down to $12,500. I'm supposed to give him $5,000 every six months per court order, but he agreed to give me more time and just pay him a lump sum once the house sells. And where are you living right now, Brandi?

Are you renting? I'm living. I'm renting. I'm living in an area where my ex-husband lives and works so we can co-parent. And it's also close to both our jobs. Okay, that's great. So you'll have $98,000 after the sale of this house. And average, you know, median days on the market right now is around 70 days or so. So hopefully in the next three to four months, your house will sell.

So it is this is short term in a sense, but that 98,000 from there, I would direct you because all your debt will be paid off at that point.

Yeah, I'd like to get to baby step four. I think I'd be able to do that with the sale of this home. I think it's just the short term that I'm trying to figure out. Yes, so that's how I was going to... Okay, that's great. Because Ken is right. For the short term, for the next... I mean, make it a goal for the next six months to bring in an extra two grand a month. And you can because of the programming skills. You know, at the beginning of this call, Brandi, just where my mind was going, I almost was going to encourage you, even though you love your job, a lot of us love things, but we just...

don't make enough money to cover it. I was going to encourage you to maybe work somewhere else for two to three, four years just to get some really good financial gain under you. I had the same thought. And then you can always go back to the nonprofit down the road. But there is something to be said that, you know, because what you're giving up when you're doing those side hustles is,

is more hours of your time where you could be making that same amount in a shorter amount of time, right? And so, I mean, I don't know. I know you love your job and I'm sure it's an incredible nonprofit and they do incredible work and people that work in nonprofits, you know, there's such great work there. But when you are a single mom with a list of disabilities, there's only so much you can do. I mean, you need to financially get in a spot where you're taken care of

and you have money saved in the bank, you're working for a down payment on a home. I mean, there's some stuff there that's real. I mean, it's something to consider. I don't want to push you into it, but I would consider it. Yeah, absolutely. I would definitely consider that. My only issue with switching jobs currently is, other than what I love what I do, my ex-husband works for a prison and his schedule changes every six months. And I've had to be kind of the one

Oh, I got you. The flexibility. Yeah. I get that. Well, that's why, again... Yeah. I'm so sorry. But I tell you what, this is great news.

Brandy, I'm sorry that you're a single mama. I'm sorry you're going through all this. I'm sorry that you're dealing with these disabilities, but I wanted to encourage you. I'm so impressed. You're tough as nails. I am so impressed. And I'm also happy for you. You're going to get out of this debt here pretty soon. I really believe that I want you to, if you try and keep trying and keep trying to sell your programming skills to

I think we can get to that money goal of increased income a lot faster than you. Here's my point. You can do that at home. And you know what I mean? And be around the babies. And not out in a car, driving around, and you're already struggling with some physical stuff. Bless your heart. I just really would like you to try that. There's so much skill set and experience that you have to offer to the world that

I would go that route, and I mean aggressive. And so, I mean, I would talk to anybody and everybody on social media, in your network, at the church, wherever you're frequenting with the kids. Hey, I'm a programmer. I'm a single mama.

And I'm looking to do some contract work. That is okay. There's no shame in that statement. And I think people will say, hey, I need some programming work. They may not be able to afford you as a full-time employee, but pay you an hourly rate. Or know somebody who knows somebody that needs it. So I would really encourage you to do that, Brandy. And we're rooting for you. Follow the baby steps. So excited to hear you say, pretty soon I'm in baby step four. And what a legacy that is.

Rachel, it breaks my heart for the single mamas. I mean, they are the toughest. Toughest people on the planet. Oh, my gosh. I don't know how they do it. You guys are amazing. Well done, Brandi. We're cheering for you, Brandi. This is The Ramsey Show. We'll be right back.

Why?

Watch live on March 4th and 5th. Get tickets today at ramseysolutions.com slash events. All right, America, we're back after a quick break. This is the Ramsey Show. I'm Ken Coleman. Rachel Cruz is with me, and we're excited to have you with us. Phone number is 888-

825-5225. And the real estate market, Rachel, I know your hubs is in real estate, you know, Dave's in real estate. And you started thinking about where we're going in 2025, new year, what's going to happen? What's the Fed going to do? How does that affect this? All the things. And, you know, it can be really crazy. Well, if you look at the 15 year fixed mortgage rate, for example, it's fluctuated between five and 7% for the past few years. And, you know,

Most experts are predicting this is going to continue for most of 2025. I'm seeing that as well. People kind of think, well, we're going to kind of be in a holding pattern. And so while today's rates might feel high,

compared to what some of us have seen in our lifetime. I've seen much higher, and obviously we've seen much lower. But historically, 7.5% is a historical average. So we don't want you to be sitting there trying to time the market. If you're financially ready,

and you can afford the monthly payments. Now is a great time to buy your home. And so to learn more about the trends and get real help as we walk you through what to do as you're thinking about buying or selling, go to ramseysolutions.com slash market. That's ramseysolutions.com slash market. Yeah, I think the two biggest myths that I feel like over the past couple years we keep seeing that people are still believing is,

Well, rates will just go back down. They'll go back down. They'll go back down. I don't know if we'll ever see 2% again. I mean, it might be a long time. I mean, I don't. I mean, it's just not. I'll be a pretty dusty skeleton, I think. I mean, yeah. So again, it's not like it's going to go from six to two in six months. It's just not. So if you're ready, you can always refinance if it does drop that drastically, but it probably

Probably not. And the other thing is house prices are not going to take a nosedive. You know, that was a big thing for a while. People thought like 2021, 2022, like, oh, it's a bubble. Everything's going to pop. Certain markets will. Have you seen Austin, Texas? Well, Austin is an anomaly. That is true. Yes. But I can hear people right now. I want to make sure we address their concern. But they are correcting. It's a correction. There's a correction, but it's not going to drop. That's right. It's not going to go down. You know, a million dollar house isn't going to go to, you know, half a million. Yeah.

idea. Like it's, they're pretty much stabilizing for the most part. It's softening to a degree, but again, it's not these, it's not crazy. It's not this bubble that's going to pop in here and get all these foreclosures like we saw in 2007, 2008. So I'm going to predict a Trump bump. Trump bump. In the first couple of years. We might see us a kind of an interesting chilled out little easy rollercoaster this year. A little up, a little down, but I think it's going to be very interesting to see in year two and three,

of his administration. Yeah. What will consumer confidence look like? I don't have a crystal ball, but I just have a feeling. Yes.

Well, so much of this is perceived confidence, right? When people feel just good in general and they feel good about where the economy specifically is heading. Well, what happens with regulation? What happens with tariffs? You know, what happens when you start to see more supply come on the market? Will builders, you know, will there be more lower income? And I don't mean that, I'm sorry, not lower income housing, but will we see housing starts come in at a much more affordable rate? Yes.

All of these things are affected by sometimes macro policies that do, in fact, come out of the White House. So it's going to be interesting to see. Yeah, that's good. Great point. So hang on. But the point is, if you're ready, jump in now, and we're here to walk you through it. Kevin is up in Riverside, California. Kevin, how can we help? Hello? Hey, Kevin, you're live on The Ramsey Show with Ken and Rachel. What's going on? Thank you for taking my call. You bet. What's up?

So, I'm in $650,000 in debt, and that includes mortgage, personal loans, auto loans. Can you break that down for us real quick? How much is the mortgage debt? The mortgage, I owe about $477,000. Okay. And now break down the rest of the debt for us. Cars is about $62,000. For two cars? Yes.

For two cars. Okay. Keep going. Credit cards. Just me. I haven't done... My wife hasn't taken hers or brokers down yet. But my cards are about... Oh, geez. I would say $25,000. Okay. Personal loans? Personal loans. Small business. I would say $25,000. Okay. Okay.

And then the rest in small loans like a firm and stuff like that. Yeah, which would equal what? I haven't broken that down yet, but it's pretty much the rest of my debt. And so how much debt? So that makes up the whole $6.55 if I'm doing quick math. Am I right? Yeah, I guess so. I'm sorry. I'm trying to move us along, Kevin. How much debt does your wife have?

I'm guessing about $25,000. Okay. And the way you're talking about this... Mostly credit cards? Credit cards and personal. Okay. And you guys have separate finances, it sounds like. We don't. We actually make these decisions together, which is... Okay. You threw me off when you said her debt. Well, yeah, yeah, yeah, yeah. But you guys have like... Yeah, it's different. Either way. Separate accounts. So we got $655,000 plus her $25,000. I'm trying to give Rachel the full picture. Okay. How much do you guys make a year, Kevin? $655,000.

We make 130. Kevin, what the crap have y'all been doing? I know. Oh, man. I'm sick of it. Just living. Just living. Wow. Yeah. And normal. And let me say that, Kevin. I mean, this literally is America. I'm like, this is normal. You're racking up credit card debts to brand new cars. I mean, this is it. Okay. So what's gotten you to the point you said, I'm sick of it?

What has, what's kind of brought, what's brought it to a head that even caused you to call today? We had a little girl seven months ago. Oh, wow. That'll do it. That'll do it. And how is your wife feeling right now? She's stressed to the moon and back. Yep. Yep. Where are you at emotionally? Where are you at? I have a hard time connecting emotions to it. That's probably why I'm in this mess.

Okay, so what's the real need? We know what the problem is. What can we help you with today? Well, me and my wife work for my family business, and we work 40 hours a week. Well, I do. She stays at home with our little girl most of the time. But I want to work more, but I feel like I'm...

a little selfish for wanting to work a lot more than 40 hours. Okay, Kevin. And not being home. All right, I'm jumping in because we got about two minutes with you or less. You're not being selfish. In fact, I would say you're being selfish if you're not working 80 hours a week. And is your wife collecting a salary? You said we both work for the family. Is she getting paid to be at home? We collect salaries. She works from home on her computer. So great. So you need to be working like crazy. How much is your mortgage payment a month?

$3,700. Okay. I mean, that's getting up to, what, 40% of your take-home pay? Yeah. Okay. So here's what I do, Kevin. So this is going to be real quick. This is going to be very painful to implement. It's much easier for me to sell you all this. I would put the house on the market. I would sell it. This is way...

way out of bounds um it does you have too much house it's taking 40 percent and then think about all these other payments you guys are barely able to eat i'm like this is take this is taking up so much so if i were you guys i i would sell the house i would sell the cars i would be working 80 hours a week and i would clean this up that's what i would do i mean i i would would you get any equity from the home if you guys sold

There's about $30,000 in the house, which I feel like is all fees for putting it on the market anyways. Well, but again, if you can get out, even if it's a break-even, she's right. You saved yourself $3,700 a month, which you need. Because your income, the ratio of what you guys need to pay for rent and mortgage needs to be about half of where you're at because you're house poor. I'm like, you guys, you know, so I would cut up the credit cards tonight. You have to have, keep this feeling of, I'm

I'm done. I'm done. I'm done. I'm done. And you have to get dead out of your life. You have to stop. And I would be selling everything in sight, including those cars, and get your head above water. You guys have a three- to four-year journey here, but you can do this. Hold on the line. Taylor's going to pick up, and we're going to give you guys Financial Peace University, which is our nine-lesson course. And you guys watch this together and just implement these steps. It's going to be hard, but worth it. This is The Ramsey Show. ♪