You Can’t Outearn Bad Spending Habits Forever
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Live from the headquarters of rami solutions. It's the ramsey show. When we help people build wealth, do work that they love and create actual amazing relationships.

Rachel cruise, number one, best selling author, ramzy personality, my daughter is my cohoes today. Open phones at triple, eight, eight, two, five, five, two, two, five. Alenina is in honey ton, west Virginia. Hi, Alina. How are you?

I'm doing good.

How are you Better than I deserve? What's up in your world?

So i've been watching you for a long time, for years now, and I have just received my one thousand dollars good and I am awful drowning in student dead credit card and my car land. Um I do have a job I make about fifty thousand. My dad is a little bit more around sixty five thousand ten. I hate my job and I want to go to school, but I don't know that a good idea because of the maniac they have um trying to figure out what the best way is to get out of this mess basically what's .

your what's your current job? What he worked in that your you're not enjoying.

I work in property management and an assistant property manager.

okay. And is that the field that you're not enjoying? The specific company? Do you think because you you said, do you want to go back to school? And just curious what else is out there?

yes. So I think it's just the field. Um this is actually um the Christian, this company, which is super awesome.

Um so I think this is the fuel and not happy here. She's not killing. I do love kids, so I always want to pursue nickering, but I would graduate IT in hawaii.

The diplomat I got from very not recognize that would have people back to school for G. D. And then go to college. But with all the get in the mess that I have, she's kind of overwhelming. And I really don't know to 看着 我的狗。

Well, I think um the we're doing this a little bit backward. You want to run to something, not from something as far her career goes. And so what I would do if I were in your shoes, I would very clearly identifying and spend some time and some soul searching, and will even give you some tools to help you with this, identifying exactly what you want to do with your life.

In this next chapter, going back to school in air quotes is a really bad idea, unless that particular degree is necessary to do the thing you want to do. okay? And sometimes when people are running from something, they air, quote, go back to school as if that's going to solve anything, is not to solve anything. Uh, you need to actually be studying toward becoming the thing you want to be. Did you say you want to be a pediatrics nurse?

Nico, nico, yeah.

okay. And your high school diploma does not count.

yes. So I graduated from a confident cy, although community school, and apparently that is not recognized nationally. And up to 吧， for A G, D, which is crazy because i've been using that pretty much my whole life. So okay.

so right now you are high school graduate that needs the passage ing E D to prove IT right basically. And then you would have to go through all your undergrad and go through nursing school to be a nursing nicu. Um okay. So what can come would tell you to do that is one of our person writing extensive on this idea is he would tell you to go over there in your off hours and volunteer .

in the nick to rock babies that is true.

and talk to the nurses that are there and tell them it's onna, take you six years to be one of them. Is IT worth IT?

yeah. Now.

i'm a huge fan of nursing as a career field, but I like little babies, is a long way from I want to go to school for six years to be a licking. That's a different thing. There's a lot different.

okay. So because nursing at times is gross, nursing at times is very stressful. Nursing at times will break your heart.

Nursing at times will cause your back and your feet to hurt and ache. It's hard work. It's a great career field, but it's way different than I have a heart for children.

You follow me yeah. So what I want to do to get your arms around what is you want to do and exactly what the cost is. And then and I don't want you to spend, secure and end up on on, uh, in in a field that you hate accidentally, you wouldn't do that.

So number one, we don't want to go back to school in air, quote says an escape mechanism. Number two, we want, if we gonna go back to school, let's make sure that whatever words studying gets us there. And then number three, what are some interm steps we can take to move in the direction of the field?

Ww, you're talking about going to school there. So while you're working on your undergrad and passing your god and getting your undergrad going at your local community college there in with virgin， what you can do your first two years, they are just fine. You're probably keeping the job you've got. Or you're getting a Better job making more money, but maybe not in your career field. Or if you can find something where theyll pay you forty thousand dollars here to be in and around the medical field and you can get a sniff of what IT is your signing up for, then I would go along with that.

Yeah and I would tell you too, and I just with the numbers you gave, not even thinking future, just presence need the money .

you need yeah and .

so what are things you can do? Because I would tell you, regardless if you wanted a career change or not on this call, part of the solution of you getting out of the dead is gonna to be up in your income. And so whatever you're doing beyond your current job, let me be a wrong kid like I will go on commercy if somebody needs a nani from six to nine P M.

Or whatever, really like finding things in that, that we're going to make you more money to get out of debt and start your financial process in this ball rolling to get you ahead financially. But then also, you compare that with some level of your passion of what you're talking about. Well, at the same time, do exactly what you're saying, but you need more money right now. I mean, my opinion, for the amount of debt that you that you have.

you can scratch the kick each by joining the children's administration or local church. Yes, and they need your help, by the way, because they're always perpetually .

understand. I going.

you have a one. I was gonna .

something really important to, because I am a believer. And I followed, cried, but I did do something really stupid and when my sitter was early this year um I would say I was super vulnerable and dealing with grief, not knowing how to do agree for the first time and I ended up moving, of course, for my first job with this year pain about seventy thousand to live with my boyfriend and now we're living this house unmarried we're .

not seen I D eye in terms .

of finances um that's easy and .

one yeah yeah move said.

why?

So yeah, but you can fix that. You can just move on. Where were you living when you were making seventy .

in our lanton, Virginia?

Can you get that job? Well, that's more expensive than one Virginia, I don't know. Netting twenty more as a very expensive place.

okay. Yeah, you can reverse that. You can say, hey, i'm doing something i'm not proud of and i'm not. That's a decision. Just like the decision to do something wrong is you can make a decision to do that, right? So go do that can hang on.

We're going to get you signed up for kin commons, everything I wanted to get, the assessment and the proximity principle book and the whole thing. Are you working the baby steps? One of the smartest and most impact for changes you can make is to ditch your cash value life insurance plan if you have one, and replace IT with a term life policy.

Listen, the only thing you cash value policy is good for is over charging you for the life insurance and then paying you a crappy rate of return on your overpayment. Stop wasting your money and really focus on getting out of death and growing your savings. For over twenty five years, i've rested and used under insurance to find the best rates on term life insurance from the Operated companies.

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IT did good. Yes, I did.

I know it's a great series.

IT is great. It's been IT was a fun project to do. And you know talking about the tangible parts of money, you know contempt and gratitude, generosity, those kind of topics i've like our harder sometimes for to grasp and to teach your kids.

So was okay. How do we put that in a sweet children spokesman? Those are the three topics.

And they're shorts. You're well compared. The rim, the illustrations are beautiful, and it's the same animals in all three books.

So that's been fun. People buying each one as they've launched, they see the same characters. So .

you'll get to kind of follow .

them along on these adventures.

Yeah, this product, for those of you, they have got kids and Green kids, be sure, and check them out because you do, I listen, you know, you teach your child gratitude. You teach you how generosity, generous people are just highly attractive. You're teaching your kid to be a high quality adult when they are grateful and generous.

That's because think about 他们 也都 去 wish or grateful and you wish their parents had thought them that hello so I mean that's part of being a good dad， a good mom, a good grandpa t good grandma too by the way. Um do not think the pope dave is not above reading his daughter's which to his daughter's kids I have been known to keep IT all in the family here it's happened all right Justin is whether since Sandy ago hi Justin. Welcome to the ramsey show.

Hi yes, good morning. Ah thank you for time. Also sure i'm trying to figure out um I have a three year old and all the money that we get for her birthday and like holidays and things like that uh we just kind of been putting into A C D that you in about five, one, two, nine percent and turn and I want to give IT for around in the eighteen um like a life started to fine um I don't want to put IT into a five twenty nine or retirement one， is there anything Better that has A A higher you Better return for her teen?

Are you saving for her college?

I have a duty military and I just finished my methods so i've already transformed of the benefit um over there to her. So i'm going to take her through you know community college and then uh i'll play for that and then pretty much all of her master is going to be completed on party.

Paid for, okay, right?

If he has all that already, okay.

they answered your questions. Just a simple mutual fund. And when i'm doing something like that, I just pick a good growth stock mutual fund that has a long track record. And um I did that for our kids because when Rachel was a baby, there was no five, twenty nine or E S. S.

And so we used just put the money in the kid's name are and then its tax at the growth is tax at the kids rate, which is nothing for a long time because they have a standard deduction and so on. The uh it's called IT and utama uniform transferred to minors act, which is, by the way, the exact same document you use to open up a savings account. If you put your name on that savings account you opened, that's C D.

Okay, that's called an up mites and up as well. Although anything you do in a kid's name is not eighteen years old, where the parent is the custodian falls under the utama the uniform transferred to minors act. It's a, it's a law, okay? It's a process because you can't contract and do financial transactions until you're eighteen years old in america, children can't have a stand alone account.

It's impossible. Parents have to be on IT or someone has to be on IT as a custodian and the utama. Now the downside with the utmost a is when they turn eighteen years old, technically speaking, the money is theirs and you have zero control. So if you have a seventeen year old haroon addict with one hundred thousand dollars getting to come her way, you know you don't have control. Well, I mean, you don't control old who .

likes to shot.

I don't know someone had something out there, one or someone did. okay. So you don't have control over this money.

You're getting ready to fund her misbehavior if she's misbehaving. Is seventeen okay? I O, B, K, you need to be aware of that.

Or like with our kids, what we told them is if you're misbehaving, i'm gna steal the money and sue me. Good luck. But that's illegal.

Okay, you can really do that. And I can't add you to do that. So but i'm not gonna und your misbehavior and .

not going to save up a little grand for you. I believe you just and you feel like a solid parent.

I'm sure he's Angels, not going to make any mistake.

No, not saying .

he's thing. What are up against?

I personally .

did not. I went that without for your old college fund yeah, I did not go that out for the little savings account that he is dealing with. We kept that little savings account, birthday money and that kind of stuff, employees. And that was the money that helps seed .

first car that that I was going to say just and depending on the amount, yeah you know this could be something that SHE gets earlier that is attached to something that she's wanting, whether that is not a car at the scene, but something that that is useful for her that doesn't also have to be this like big investment and put in a big investment fund. But would you still I mean, still with the longevity of being three to eighteen, you know that fifteen years you would .

still probably in I know it's not just going to be twenty five thousand dollars. This can be twenty five hundred dollars. So we put put in birth date money on there yeah but .

if he wants to be funding more of his money, then you would do a mutual here for more money to be putting in there .

for the dollar. Yeah what but? And so to expand on that one step further, what we did do also was we took the kid's little missile is savings account and we added to IT.

And then when they started talking about being like ten or nine years, we talking them about were not buying you a car. When you turn sixteen, we will match whatever you put in. We're going to do for a one day of, and i'll match whatever you put in.

And so if you put in nothing, you're gonna have a nice bicci cle when you're sixteen. So yet you'll start talking about doing some chores in putting some money in the adding to this little account or if vartiainen arted for you. And then they save up. And if I recall, you can correct me. But if I recall, you had somewhere around with, you had somewhere around five or six thousand dollars, and we matched I D OK.

I had eight, eight OK .

thousand dollars and I .

put eight.

yeah, you got a thousand.

took me out with .

your college is a great low car I shared IT and and and the other two siblings do the exact same thing um I will tell you, parents, if you gonna use that matching idea, uh, be careful if you have, uh, in case you have one of those kids that is a nerd super saver and this highly motivates them, you may end up having to match thirty grand. If you don't put a limit on IT. So I would suggest you put a limit on IT.

I did have one of those, her brother, named Daniel, and he just about IT was ridiculous. And so we had to come around and come and negotiate a different thing. Not I did matching but he was generous with some of the money and use some of the money .

for his car because it's so your old g something .

and he's just a conservative but I mean, he saved everyone crazy so put .

a limon IT will match IT when he got a head start. Parents, you know.

I like four, watched you ious that IT wasn't again, we weren't kidding and went, oh, rap, I really going to do this and he turned on the goals you go so put a limon IT and you can do match and I use the small accounts for something like that. I use the utmost. H, for a big thing if you're do a big thing. Jury, that's what I would if you're going in that White Justin, this is the rami show.

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You are our marketing plan. Spread the word on the show, share the show, click the share button, you can subscribe and you can follow, and you can leave nice five star reviews, and you can click the clip on the link out and make a copy of a, and send to your friend by email, and go listening. This this stuff helping me with my life, because that's what we're here for and we need your help.

We need to have more people that we're helping. That's we're doing. And thank you for those of you that have been doing that because our numbers are ridiculously up and we don't even have a stadium named after is like so I or something like that is you know i'm sorry, the allergy are bad, but the um um yeah that you are marketing plan.

We're not drop in three hundred million on a stadium. You're IT. So thank you.

We're either help and you are or not and that's what were here for. Thank you very much. Courtney is in dallas high. Courtney, how are you?

I'm going good.

How are you guys Better than we deserve? What's up in your world?

No, nothing much. I was wondering if you guys could tell me what the benefit is of not using an escrow account to pay for home insurance contexts.

Two things. One, you get to keep the money all year. And an interest on IT, instead of is sitting in on the count, is not interest bearing until you pay your taxes and pay your insurance.

So creese interest in the second one is you don't screw up the accounting and mortgage companies notoriously screw up the accounting on esco accounts and they get out of baLance and there's a escrowed orange and then they raise your payment to make up the shortage or they just missed calculate something and you got somebody that the lowest common dominator run in the calculation too many times. And when I used to own a bunch of property with that back in the day, I would say as many as forty percent of the accounts were screwed up. So I don't know if it's still that bad because I vents have a mortgage and dirty plus years um but but I suspect IT is still a problem. The benefit of using the Oscar e is IT on autopilot. You don't have think about IT.

okay? And most people .

don't manage their money well enough. They end up not having the money to pay their taxes or not having the mind to pay the insurance that sneaks up on him like Christmas.

yeah. And I know that some mortgage companies don't even even give you the option. Sometimes they require you to use the us.

Go count, correct, a typical conforming mortgage mining anyway, if H V A will require IT because they want to make sure that the house they have a lean against doesn't burn or isn't taken for taxes.

great. okay.

And so yeah, you don't really have a choice. I personally, if I were you, I I would just use the extra account, but I would stay on them to make sure it's the proper amount.

okay. How do you recommend staying on top of them?

Well, you just want to make sure that the amount being taken out of your payment for put your payment is principal interest. If IT as as grow, it's taxes and insurance P I, T, I. And you want to make sure the amount being held out for taxes and insurance each month is one wealth of the total of your taxes and insurance.

IT shouldn't be one IT shouldn't be less than that because you're going to come up short and they're going to have a shortage because they're gonna pay IT. Either way, they don't want to get that, don't want to be behind. And then or there could be an over age, you will say they're taking out more than they need to.

And so just make sure that the numbers are right and just look at IT once a year, make sure they're not you know if your taxes and your insurance actually go up and they don't change the amount being withheld forward, you're going to get behind, right? IT. That's that's one of the ways you look at IT. So that's the kind of thing you do. So I I would use the esco if I were in that situation, not recommend because I put everything on autopilot .

that I can.

So every everyone.

even though it's not .

earning interest matter o 有 and um more people are gone to screw up but not saving up the money and the mortgage companies going to screw .

up the true so ah and and we have part of our website talks all about this all real estate， our solutions dot com slash realised that kind of our real estate home base because we just it's one topic when IT comes to your money that we get so many questions. So if you guys need more resources is free stuff, videos and articles and calls from the show there so much there to help you in this in this topic of your money when IT comes to your home.

ramsey solutions that come to light al state, honestly, it's the that portion of our side is massive because we so we get so much a question on our side is really, really a nice resource to help you. yes. So good .

to excEllent.

excEllent question, Jerry, is whether in norfolk of Virginia, hyg ery. Welcome to the msy show.

Hi, thank you. So I my question, I have a bunch of accounts. I have a charle shop brokers account.

I have a charle shop I R A traditional and a Charles b move roth. Now I also about, I also have a principle. Now principles.

The company my employer handles are four one. So I was looking at their website that looks like they charged me about a hundred books a month to have that account. I have the option. Yeah, yes, I thought that was kind of high.

That's wrong. Well.

that's what IT says under fees.

You you have a four o one k and are charging with your company.

correct on a hospital employee .

and there is a four three bear four o one k for .

a one key and .

they're charging you one hundred dollars a month, twelve hundred dollars a year.

actually three hundred dollars a quarter if you want to be specific. But yes, basically hundred or yeah he says that right here plan administrative services two hundred and eighty eight point seventy.

Is that being deducted from your account or your employer paying that?

I don't know. I'm just looking at the website where says plan fees. So i'm assuming .

i'm paying IT. I'm not because you .

shouldn't be. okay. Well.

that's the plus would be very unusual as a matter fact, your employer shouldn't paying that much per employee. That's as an amount of money.

I I yeah.

I don't pay anywhere near that. I got twelve hundred employees for the four win k plan here. No, we've not even close to that. I would fire those people in a heartbeat if they were charged me that well.

how do I find out if i'm paying that college? On the website, IT says plan fees.

Yes, well, I can be a and fee, but the plan was an instituted by use, instituted by the employer. So it's possible there being charged that that's just little as I I will call H. R, and I would call principle both and ask him OK just call principino.

Hey, I got a four one. K and i'm looking at the statement here and this feels like like you guys should be wearing a mask like your robb. Not really. That's just ridiculous.

Your question though there your original question you call in.

So my question was, now I now have the option of, instead of the money going to principle to take care of IT, I can have a go to Charles job.

which I would have the sort.

yes. Yeah they I don't know if that's new or not, but I was actually talking to them and they said if you want, we can have IT go to Charles drop um account. So i'm assuming it's .

some kind of lock .

down type account, but then I would have total control to buy cell or do whatever I want with IT. But that kind of scares me because at least with principle, I have theoretically and expert looking after IT versus me the amateurs after IT. So i'm basically looking for your advice is the twelve hundred that I thought I was paying worth an expert looking at IT?

No, but you can get another expert. You don't have to do this other thing. okay. I'm seriously confused.

I have no idea what the flip your company is doing because a four one, a company has a single four o one k administrator. If principle is the administrator, they cannot send you for one game on a swap. It's illegal.

They can't do IT of a single. You can have four different four one k companies at your companies IT. There's no such thing IT doesn't work OK.

So I absolutely have no idea what you're up against. The only thing I can do is tell you to call one of our smart meter process and see if they can unravelled this for you. Just go to ramp solutions, not comment. Click smart vester, by the way, they can help you if you're going to be doing sad investing. This is a rampy show.

This show is sponsored by Better help. This month is all about gratitude, and most of us have people in our lives who are grateful for. One of those people for me is the great honor.

Well, thomson, he told me at to be a dad, a husband, a professional and had a baLance caring for a bunch of people all the same time. We all know if somebody else we can be grateful for, but there's one person that we often don't take time to think ourselves. We don't always acknowledge that we're surviving, that we're moving forward and that we're working towards a Better life in Peter relationships.

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Raco cruise ramsey personality is my cohoes Joshua is in seattle. Hi Joshua. How are you .

doing good?

How are you Better than I deserve? What's up?

So I uh I recently retired from military um medical retirement ing um and after I had done .

now .

I there is about a month of no household income uh h what soever um and we can run into some financial and uh with Christmas is coming up, have three Young children um and i'm modern, should I kindly sacrifice their happiness .

person's morning .

um 就 跟 你的 有 pay off day and are eighteen hundred and about four thousand hours and collections right now and roughly bring in about six about five hundred six thousand thousand a month .

thousand i'm tony for thank .

you for your .

service。 What happened that you were medal discharged? Are you okay?

So um I was injured line a duty. My back was injured a and they decided that I could no longer serve how they needed me too.

Are you? Are you OK the other things you able to? Are you back to work doing a job now?

So i'm currently not working. Um I am drawing pension from military.

Why are you not working?

I am currently going to school full time.

Okay, why I .

want to? I've always kind of worked um more labor type out uh, on your body.

What are you? What are you studying?

I'm going to the school for a business administration with a major project management.

K, and you just, and you just started.

yes, I did just suggest .

started willing to not work for four years.

yes.

Is your wife working?

No, we have three Young children to stay.

okay. And when I went through four years, I worked forty to sixty hours a week while I was going to school.

Absolutely.

you need a job.

Yes, I have been at working a little bit trying to get international somewhere.

I want you to an internship. I to a job OK. You need money. Yes, aligned with you using your military benefits to get a degree. I'm not aligned with you not working for four years while you have three kids and you're .

calling me about them having no Christmas absolutely um not of course um but I bringing them around sixty .

three thousand dollars a year I know but you're calling me about not being able .

to buy your children Christmas and you're not working absolutely because of the well obvious much I just got that activity um and we hit a so josh, I think here's .

the hard thing. Well, if I can just .

be pretty .

Frank with you um you know what what you you know have done service for our country like incredibly grateful for you and all military families out there. I can even imagine like what you will go through so I so appreciative um but now on this side, you know you're twenty four, you have a wife and you have three kids and there's a reality of a world that is, hey, i'm a grown up and we have responsibility, lies and we don't get a choice just to go do what we want. We can have to do what we need to do and what you need to do, right start having money.

And so if I were you jush wa, and I don't know how far you are into this maybe once semester of school, but if it's too much of a load not to be working full time and and maybe it's your just you're driving uber, but i'm just saying even for a even for a year or two, this is where you want to go. But you guys are under water financially. So to me, there's not a choice to go to school like I I would be finding a job.

You can go to school and .

just a bit now.

but they have four .

thousand dollars in .

collection. So when does classes let output?

So i'm currently on online fully.

Okay, good. So you control when you want to go to class. Yes, that makes you even Better. So you can work like an eight hour day.

Yeah, but we did just have a newton that's honey.

Your wife is at home with three kids that we like our job.

absolutely.

You need money. You need to go get a job job like right now, you need to be grab hub and uber and something else by the end of the day. And you can buy your babies Christmas and otherwise newborn don't even know it's Christmas, so it's not issue here.

okay? You feed them and change their diet. They are happy. Puppy are.

So let's about five years old.

They don't really know. They don't have any idea what's going on here, but do you can call me up and act like that? You can't fun Christmas.

This is thanksgiving. You ve got a whole frequent month. You can save up the money for Christmas by working during this month. That is the answer to your equation.

Go get six part time jobs that equal eight to ten hours a day, and do your thinking, uh, online at night while the babies are asleep. I wrote financial peace from ten P M to three A M. That's when I wrote that book because I had babies I had to feed and I couldn't sit there and go.

I'm now an author. I don't work anymore. I didn't have that as an option. The freak electric bill guy didn't care if I was an author. He wanted like money or they cut off my electricity because if he's .

is and he's pulling the six thousand from his pension.

he got a lot of money come .

on on but yes and that's but is that that Robin from is really no.

no, no, no, no, no. This is military retirement is .

huge because .

military because .

they say that he he .

makes twenty two thousand hours or something. But and and they pay and they pay for him to go to school and they we we the tax page and we should yes, that's fine, yes, but do that they answered the question is you're not only your kids have Christmas, you keep working after Christmas, and you only need fifty eight hundred dollars to be debt free. You can have that by march.

So first I go get the kids some Christmas and then let's get josh. I had a date. Mm.

josh, can I just tell you too, as a mom with your kids, like especially if there are a newborn, a two year, I M twenty four, so a two year old in a three year old, like i'm assume that they are all under six, I would think they don't know. They go to the target section and they just want to open up gifts like they don't really care what's in IT, they just want to have the raping paper in the experience of opening gift.

So like goes so cheap, like goes so cheap. That stuff is me thrown out by April. Anyway, crap we buy so right yet, so even that, and that's for all.

And I get right, when SHE was little, we had been always thinking money on the kid's Christmas and then dead gum uncle mac would go to the dollar store and come in with like a garbage bag full of toys that were garbage. And he was a bigger hit than we were. And he spent like twenty bucks, and we spent like two hundred. And let's my was the fun call .

that in this consumer driven world, and especially in the season, your kid like I want to, I think it's freezing most of them. This is not to pick on you, josh, because is everyone to make my kids happy. IT is just stuff like the most, like we are such a disconnected culture anyways, like the amount of people that we are on devices and phones and tvs and screens, like your kids want you, parents, they want you. So I go find an experience to do with them, and that's going to create .

more memories. So they go to work. I said his kids want him to go to war.

want to go to to work. He, he, him with .

little bit right now. Right now, he needs some money. You call me up until you can buy your kids Christmas. I'll cry you for about austerity seconds, and until I OK and then macrones done.

I know, but my point is, thankyou skiving. We took the kids to a school parking lot and they rode bikes around where we all rode bikes around here yeah now and they still talk about like that. I'm saying kids are main pressure experience.

Christ as and by the way, everybody had the bugs. So was built in that was like a free bee. So they were going well.

just, you know.

you can.

We are proud .

of your military service. We love you so much. You don't tell you the truth. Don't call you don't want that. This is the ramsey show.

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APP today live from the headquarters of ramsey e solutions. It's the rain show where we help people build wealth, do work that they love and create actual amazing relationship. Open phones this hour as we take your calls about your life in your money.

The phone number is triple ate eight, two, five, five, two, two, five number one, best selling author ramzy personality and host cohoes to the smart money. Happy out. Rachel cruise.

My daughter is my cohoes today. Thank you for joining us to reset as where's in four worth texas? How to reason how .

are you how are you .

Better than I deserve? What's up in your world?

Um I have grown children um that I need of my payroll um and I am on baby step two, i've over saved actually on one and I can't seem to getting me further because I have a thirty old that works part time. He says he can't find a job, is resume free paid wrong he has no education, no skills per say um his father we can go way back was ab so he was um put in a mental place for a while for P T S D and some by polar issues.

So when he gets out of that and now we don't have a full time job and my daughter is wanting to start back to school in january and i'm stopped doing a student loan from when he was doing IT before. I don't I know i'm enabling and I don't know how to stop and I don't want them moving on the street, right? I can go on for day.

Let me help you if there are thirty one and they're on the streets, its third choice.

I I know not yours and and I know it's hard and you don't want them to be that way.

I don't that either.

Honey, when he has some woman from what you outline, is he taking care of himself? Like now medical themself medals, like take medication, all of IT for bypass. Like as he he .

he'll start IT and he doesn't take .

IT and he'll start .

IT and he doesn't take IT, he does not because that would cause conflict. And I don't i'd putting him an apartment. He had a beautiful apartment, and I took him out of beautiful apartment. And then I, pretty in a crap hole, is literally a crapper .

a chance can afford. The is still .

two hundred, and it's still two one hundred and .

still helping pay for IT. So what you have to ask yourself is, ten years from today, what is best for him? What is best for your daughter? What is the most loving act you can give them? I'll answer that .

for you.

that they have the dignity. A, i've having stood on their own two feet like adults.

OK.

you are taking their dignity away .

from them writing. And I have streamed, cried pride, got things, some just being funny.

Now, one hundred percent of enables are weet people. You are a sweet person. You are devastating your children, hurting them.

I teach. I know Better. I know how to make my children at .

school know if you get IT to your head that you're harming them, you're could doing IT.

okay.

You've gotta actually accept the reality that you're harming them, okay, and what you do that you're could doing that you wouldn't ever give a drunk a drink, you wouldn't ever give a bag of heroin to a heroine, an addict. You you would never do that. You're too sweet person, right? Yes, bring the form to them. yeah. But I will .

say there there is A A level of complication and complexity from what you kind of just outlines that he he has some, he has issues. I am he, he spent time in a mental facility. he.

Got to have been a good five years ago. Yeah and they both have this, you know, this abusive father.

Yes, the thing the thing is, is okay. I don't i'm not suggesting i'm not suggesting that you're mean spirit or even that you just announced suddenly in a fit of anger that i'm done, i've had IT. That's not what we're suggesting, but I would say that i'm gonna at this Young man at Christmas and say, daughter and daughter and say, okay, I can do sixty more days of this.

And so i'm making that number up. You can decide what what you want to thirty days or sixty days. You can't go longer than sixty.

I won't let you, okay, but i'm going to support and i'm gona give you some help for the next sixty days. This is your warning. So you need to ramp up to get ready to receive zero as of february, as of march one in the end of february.

okay. And you tell them that there in Christmas hearsay, I love you, and i'm really so sorry that I have been handled my relationship with you because it's kept you from going in being all that you wanna be. And i'm gna be so proud of you when you go and be all that you're supposed to be and i'll be cheering for you and i'll be here and i'll be here to cry with you.

And also really that you just know you're not in a place to be able to help someone financial. You're in baby step two, you have debt, right? I'm like so so that I mean, that's part of the equation. We honestly and I think you know maybe there's other options if you are on the other side of all of this financial of things of like, okay, but you you don't you don't .

have money if you will tell you actually the thing though but you can say, mom, mom broke. In part, the reasonable brokers have been supporting these adult children, which is a actual oxymoron. This is a word raises adult children.

What does that mean even but the um but yeah I I am am not able to do IT anymore and i'm not going to do IT anymore because i've come to realize that are bringing you ARM when i'm doing that. And so the good news i'm giving you a little warning, the bad news, as a march one, you will receive zero from me going forward, except my love, my prayers and my cheerleading. But there will be no more money after this a date.

And you set the date and make IT very clear. Don't hedge IT around IT and don't go well if you think we now shut up very clear, this is the date, it's a contract and then follow IT up with an email just reminding you when I told you over Christmas, I love you. I'm cheering for you.

I'll be here for you. If you need a meal, come over on each dinner, but they'll be no more money. After march one, i'm broken and i'm having to cleaning up my mess, and i'm cheering for you to go be your best .

self OK OK. Are you gonna do that .

because you love them so much, you're gonna them have their own dignity.

I love you so much. I am going to do that for everybody.

You sweig. You are sweet as lady. Enable enables are the nicest people.

So I mean, seriously, as it's devastate, I really like that. That would be so difficult if you really did believe if i'm not helping my child.

they're gonna on the street really .

do if you you .

don't believe that you're bringing them harm, you're not facing reality because .

it's .

not a sustainable life to live without dignity.

I hear no empathy and after .

getting out from another my control, I don't buy stuff anymore. You will make you make your own way.

little pig.

make your own way. There's a big bad wolf out there. Be careful. Make your own way. I'll be cheering for you. Hey, guys, i'm never done this before, but i'm partnering with a nutrition company, field of Greens.

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I'm coming to the city near you live on the money and relationships tour with doctor john on this is the most interactive we've ever done. You get to decide what we talk about. You do not want to miss this or becoming the level groom atlanta phoenix forwards and is a city in April and may of twenty twenty five.

Get your tickets and more information at ramsey solutions, not com slash tour. Regio cruise ramsey personality is my cohoes the ramsey show question of the day is brought to you by why rei, if you've made student loan mistakes with zeros on the end, but we're not judging you, but we are saying it's up to you to do something about IT contact. Why refile.

They were created specifically for people with defaulted private student loans and our government loans. If that you go to why ref I outcome slimpsy, that's the letter Y R E F Y dotcom slide. M I might not be available in all states.

Today's question comes from Daniel in, I tie and donate extra to the church with my family, and I attend our donations. This share will be around twenty thousand dollars. And tides and offerings. The church is not registered, a non profit organization. Should I keep donating big sums to them? We still want to give our types, even though we don't get a five o three nonprofit letter, but we are hesitated and donating more because we're afraid we want to be able to claim on our taxes.

Churches don't have to be five once SHE thread to be deductable is not required by the code. The rs code does not require that they have to be formed as a religious organization. They can't be involved in politics and they can't be running a four profit under the same roof uh of some kind. But if they're Operating as a true, a true standalone church and their job is to minister to the flock and take care of the windows office and serve the community as a typical church wood, you are fine. I does not require .

to be a, i'm afraid to client our oh, OK does not .

require sorry.

OK here you .

and I also.

I don't know, I tell me the giving aspect, like giving out of your hearts, you know, desires and what you want. And the tax right off is just like an added great the thing, but that's not the main motivator I wouldn't not give to somewhere because you don't get a tax deduction exact that feels weird.

Now I will ask this question though. I know most churches, and we've had financial patient versy taught in fifty thousand churches in north america. So we interface with the church community all the time were a huge supporter of the bright of crashed. We love the church, okay? And most churches go ahead and apply for and get their five women see three just so there's no question by anyone and about what's going on over here.

Um and so maybe it's a start up, maybe it's a church plant in the early in the process, but I would want to ask leadership why they haven't gone ahead in a platform because getting a father once see three uh certificate when your church is really not much of an effort. Um i'm i'm curious why they wouldn't do that. Um and I would ask them that but I wouldn't not give and I would not worry about whether everything's a deduction now if they're running a political action committee out of the back back there yeah out the back room um yeah you could lose your deduction there.

That's one of the guidelines. But if they're running an actual church, then you you're not going to have any trouble with the tax issue. But I still would asked the question, why not I don't understand.

I can't think of a biblical reason to not do the paperwork. You would be like, okay, we have a church building but we didn't buy and fire insurance on IT why we're trusting jesus jesus in the insurance guy there. So you probably want to buy insurance on your building. I mean, that's like how cut its its in second has a patients. So I mean I for me IT IT just keeps given it's the .

dad jokes that .

just keep working so that long as keep working and my ratings don't go down um the yeah that that yeah I would get insurance on my building and I was the arch was the ship the so asking why would .

be good just but also don't be giving just to get the tax action. But you can get the tax reduction .

according to you a part 就是 you can ask ask pop a google。 I'll tell you there is pop right up a question for you. R right? A P in new york city. High peer, welcome. The M. I show.

I gave my way to.

Are you guys Better than we deserve? What's up in your world?

Uh, not much. Just wanted to financial by plan, unique unique for me at least position in about 我 i'm look i'm thinking about maybe buying an apartment and investment uh property for two hundred thousand。 And I kind just want you guys advice IT from ready for not ready for IT or maybe I should .

just put on the bad burner. Okay, are you out of dead and are you going to pay cash for the apartment?

So um so sorry, I should tell you my situation. So currently I have a two jobs, my income of I have about three incomes um my salaries about two hundred thousand more less and I also the house that I currently live in, I make about three three thousand doll comes in in total my only debt is my mortgage in a my wife car which is about a twenty five thousand.

Okay OK well peer, I I own a bunch of real state. I love real state. Regules husband is in the real estate business.

He owns a bunch. They own a bunch of real state. And we, both these family sitting in love, real state as an investment.

The rule we live by is we pay cash for IT or we don't buy IT and we only start buying investment real estate after were one hundred percent debt free home and everything that's the real we live by. But having done there, you will thorough love the real estate business when you get into IT. IT sounds like IT sounds like you wanna do IT. But if you buy this apartment right now, it's probably going to cause you financial problems, not blessings, because you broke, you got a freak in car payment. You don't go back to that does not a rental .

property so I I could pay so a little more of my situation, understand IT a little more situation. I have fifteen .

in the bank and write to check and .

pay off car today understood understood. I could do that .

and yeah you should .

I hadn't I also had another question for you also um so I was thinking I was thinking saving up to one hundred k and actually pulling a head off of my house. I know you're really against IT, but I feel like IT would be a lot easier to pull the he walked out the house, how I have a income t what I have money coming in from the rest of my primary resident pear.

are you twenty four?

I'm actually dirty too.

dirty too. Okay, because you sound like I sounded when I was twenty four. I used the stuff. I used to say stuff like that when I was broke and IT made me broker. Okay, because here's what you're not anticipating.

You're not anticipating all the things are going to go wrong when you want a rental property and the renters that don't pay. And now you ve got a head lock on your house and I have to come home until your wife were losing the house because the apartment deal in sideways and we're getting four closed down. You don't want to have that conversation.

I'm so stupid, but I had that conversation when I was your age. And you don't want to have that conversation. You want to do this dead free, but you're gonna ahead and do IT.

So I hope IT is out for you. I don't think it's going to and you ask me so I told you the truth because I love you. I don't think you should do this.

I think it's a really, really bad idea, but I don't think I can stop you. I think you're going to go learn the lesson in the hardway. Some of us are nuckles heads and it's just how IT works. We have to get bumped on the head um to catch A P R.

Might be listening and might be reconsidering. We don't know is not because I think what's difficult is in the present, all of that sounds good, right? Like you can line IT up a situation and say, oh, if this sits in there and I have that the corner and it's all working, all these moving pieces and here's the problem to be, or when you start lever, drink yourself like that.

Statistics s show us, and studies are showing us that stress goes up, anxiety goes up, lack of sleep starts to occur. And you're trading your piece of minds for complications of trying to build wealth. And you're doing IT in a really fast way, in an an effective way because it's going to cause other issues in other parts of your life.

So be as peaceful as possible. Pay off the car where can paid on your mortgage and then say, hey, let's save up and buy. And in ten years, you know, five, ten, fifteen years, you guys could be William and dealing, and it's all your money and with a lot of peace. So I just do IT the right way. Everything you're talking about can be done to slow IT down and do IT with cash and said.

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Actual cruise ramsey personality is my co host today, my daughter. One of our favorite things in the world to do is talk to one of you when you're doing your debt free screen because you paid a bridge to win. You've live like no one else.

And now you're ready live and give like no one else. We even put det free screen stage in the lobbies of ramsey solutions that people come by and watch the show and then they sign up and do a debt free screen on the debt free stage. And our favorite of all is one of our when one of our own rams family, ramsey team members, has become dead for you, and they are in the stage.

And that would be true of matt hudson and his wife, Terry. Matt, congratulations. You did IT.

Steve, well done. Terry, way to go. Thank you. wow. So mad is a software engineer with been with twelve years.

I have RAM in the financial pai rami .

plus working with every dollar and working with financial patient all that. So you seen a lot here over that twelve years. How much dead of yp aid off? So this was our mortgage, and it's one hundred and thirty three thousand.

why? How long do this tag total? Seven years and three months? Okay, right. So after you came here, yeah right after you came here, you ve got the mortgage and you said, how are doing this? Yeah we so our older sun is eleven. And so for the first year I was here, we were both working and wouldn't have kids yet. So we saved up a really nice speed down payment, got our house with a fifteen year mortgage and Terry quick work.

After ever IT was born, I think IT was a priority for her to stay at home when they were bit and in the past few years then with her beam to go back and work part time, that we have made some really good progress to be able to get IT knocked out early. Wait to go. What's the house worth?

It's worth four eighty five.

I love you. I love IT. I'm not going to go into your personal steps. And since half the ramsey team is standing around and i'll tell your business of running your coworkers, that would be unfair.

So I won't ask what your income is or what you have in your four one k that we have here, but you guys ought to be approaching million aire and proud of as soon as you get there. I love having millionaire work on our team. So and that's the most beautiful thing I can think i've ever heard.

Way to go, you guys. Thank so. Very, very proud of you graduated. So working at ramsey is weird to start with because we're weird bunch. But paying off debt while you're working here, it's like peer pressure to do IT in IT.

Yeah he says it's a good thing. He works.

Circuit is the spender, which is true. Okay, so are you are you spend money on gadgets? Yeah so for engineers so i'm guessing yeah yeah gadgets. I just have a like you pick an expensive hobby and probably into IT OK and Terry, but you use the code is sure. And you to rank in then in the budget .

meeting is a good thing for both of us to get on the same page. So that's been a big key for us is to have that monthly conversation to make sure we're both working towards the same things .

and have our priorities together. And that's done. I'm proud of.

It's a big deal. I mean.

to have no more half a million dollar house.

How you and forty two.

forty seven.

very. Our goal was by fifty. So would let me beat that.

Yeah, you did IT.

You did IT the bar. okay.

So tell me because when people are on the latter baby steps, you know when they're in four, five, six, a question we get a lot is okay. So how much how much should we will be throwing extra the morning age to paid off faster? So just like walk through high level, how you guys decided, uh, month to months or season, maybe its season by season, year to year, like how what what did that look like? A putting extra was sometimes that I was like, no, we didn't because we are saving for a vacation where there's sometimes that you're like all of the extra goes on like what does that look like?

Three guys um my Youngest started kindergarten the year of twenty twenty. So I planning to go back to work when he started kindergarten but with coveted being so unpredictable, all I was like this just told off. So I started working part time in twenty twenty one, and we had decided that all of my paycheck would go to house payoff. So okay, if we lived off of what that made and hit our saving schools with that for like vehicle replacement and stuff like that, but all of my paycheck went too.

Okay, so great. Are you so gonna ue to work part time or about the .

ah we've got some other goals. We want to do some house renovation, some vacation and of course, late college funding.

Yeah, yeah, yeah.

That's so what are you going to to the house?

We want to get some new floors. We want to update the living room. Just we have really haven't done much to upkeep the house since we have bought IT. So we just kind of want to make .

IT pretty yeah there's a lot of things we played off because it's like what we're almost we almost have the house paid off and once we get that done, you no payment yeah all this room yeah putting them fashed, putting new flowing and IT IT goes a lot quicker when you don't have a mortgages.

So tally, so great guys, amazing, amazing. So how does feel when you when you got has paid IT off and you like you, what what was that like? IT was amazing.

We were at chase like five minutes before they opened and we're taking pictures outside of chase and the employ sauce and he's like a utalian mac come on in. And so he told us the payoff baLance and rote the check. And we're just sitting there .

like we just did IT. We did IT love IT who and go to the parking lot. No, I like IT.

Very well done. Well done, you guys. All right, working here. Is that make IT harder or easier? Seriously, I think IT made IT easier because it's just like like you said, like you have kind of that positive peer pressure.

Like it's not weird that we were not borrowing money and that we were paying extra on the mortgage and that kind of thing like IT was just I know you have the benefit of your code worker is not making fun of you yeah and that's an interesting thing to quite the opposite. They might be making fun of you if you weren't doing this, but you just doing handling money weird and everybody else is doing the same thing. So it's not like you're an odbc around the people you work with doing IT so well.

Obviously, you don't have to work at range to do this. Millions and millions of people who have we got tens of thousands of debt free screams on the youtube channel that people of people can watch, people from all incomes and areas of the country and situations of overcome all kinds of things. But what would you tell folks that are listening and watching? The main thing from your perspective theory that you have to do if you want to get out of that. What I was is the key to getting out of that.

I think it's having the budget in making sure that everyone's on the same page and that you're working toss the same goal and then also to like daydream about what happens after that helps you stay focus because like for us, that was eleven years, which felt like forever, and we had to keep up with our dreams. So like focusing on that after the house pay off to hi.

when you mapped IT out the first time, what was your prediction? How long we thought .

we would be done by the time or all? This entered high school and he's in six grades. So we got .

done about three years, thought gone fifteen years. And IT was eleven. Yeah OK most people bring in in earlier than originally planned.

yes. yeah. That's not unusual at all. Good job, you guess, very proud. Great job. I bring the kids s up a every and Spencer are where there's good look at Young man. And so who's who and what's the ages?

This is average.

He's eleven and this is spender. He's nine. okay.

So ever came the year we bought the house and now he lives in a dead free house because his mom and dad are heroes. Way to go. You guys were very prd guys.

So I factory to see you at Christmas parties every year. So it's good to see you outside of IT. And i'm so happy for all thanks. So so excited.

All right, ever in spent for you guys, been practice and dead freshen. Am, you know, how do IT Better get ready, man, because this is your minute. This is your moment.

Right here. You can be famous. And just a second math. And Terry, ever. And Spencer matt hutt, son from the ramsey team for twelve years, he's been, whether they paid off the house in eleven years and three months, hundred and thirty three thousand dollars, how and everything, they are weird. Their heroes counter, let's hear a debt free screen, three, three, two, one, where the.

Way to go, you can. Like any good software engineering, he's very precise. And they had a plan and they executed IT early. Yes, wow.

knew what they knew what they want is incredible, absolutely redial. I would have a paid off house like that. Just I mean, it's crazy.

crazy craze when Normal is broke in america. Your goal is to be weird. So one of the best compliment you can hear around the M. C shows, if we call you a weirdo, it's because you're doing very smart things in a culture that has nothing smart to do. This is the ramsey show.

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It's all there at ramsa solutions, not come to life store and even more. Eric is with us in key west, florida. Hi eric. Welcome to the ramsey show.

I don't do .

so Better than I deserve. What's up?

Yeah so like many investors, I pay my financial adviser and asset and management fee in my case is one percent um my wife and I ve been married for twenty years and over the time we've built areas a hundred management to about half million dollars, get other assets but under management from them about half million dollars there would be five thousand dollars a year for their fees. A couple of years ago um my parents passed away and we inhered a instantiated sum so now our asset under management or a little over two million um my questions are you know my problems are too uh first you know by doing nothing extra no f their part sudenly my adviser has gone from five thousand a year to twenty seven thousand year um for doing the same work um the other thought is you know when he was five thousand dolla year and I could stomach that now i'm thinking over the next twenty years, even if my answers remain flat that's know four hundred thousand and if they go up plus lost investment opportunities like we five hundred, six hundred, seven thousand, seven hundred thousand dollars that i'm losing, so are there any alternatives to asset management fees? Are there any .

recommendations you can make that's a very standard way of running a broker and made an advisory company. Right now, most of our smart vest prose run a very similar fee base. I have seen some of them the fee decreases as the assets percentage decreases as the assets under manage increase.

And so when you've got a portfolio of the size of years, IT probably could be less than one percent. Um I some keep IT there. Uh and in the question you've got to say is, okay, what am I getting for this money? And um you know i'm a firm believer in having an adviser.

I'm like you though. I I want to know what i'm getting for what I and so I think i'd have a conversation with them about two things. One is, tell me exactly what you told me. Yes, this is a lot of money, and i'm not sure what i'm getting for my twenty five thousand dollars a year.

Show me what's because I can buy a nice car once a year for what i'm paying you all, okay, and have a whole basement for the cars, right? And so in a couple years, so I mean what what is that i'm getting for what i'm paying you and show me your value? And and or ah do you have any kind of a sliding scale now that this has gotten uh so much more um like a lot of times times over a million dollars? You started to see things slow down.

Do you have anything that you run a less percentage zone on a portfolio size? Ask them that question. Those two questions. Want to show me why, you know, make the sale again.

Why do I? I mean, i'm not mad at you, but show me I right now, I am, I am, uh, confused. Dissolution about what i'm getting .

for twenty five. The same thing right then. The third thing I would .

do job on ramp solutions stock com and click smart rest pro and talk to some of our smart investors. They're in the exact same business. They run the exact same.

Most of them around a management feel like danna um you know and you usually the the know very standard in the business. The industry runs about one percent. Some people do three quarter.

Some do a sliding scale when you get more down. But I mean, they're not ripping you off. I don't think that at all, but you're asking a valid question that you deserve an answer to.

And IT is enough money that is fair to ask the question. So I would ask the smart service process asking to them that you have A A sliding scale when a portfolio gets this got. I'm really concerned that i'm paying a one percent fee on that because I don't know what i'm getting for that.

And and and it's not a blige ant thing. There's no religious in your voice, by the way. Okay, you're not being in a jerk about IT. You're just going on.

Okay, i'm sorry and and I probably wouldn't use the phrase you're doing no more work that's a bit insulting, but I would say, you know, what am I getting for what i'm paying you? Why would I do this and and what's going on here? I mean, because I do I do value what they do. And I think you should, eric, I think you have to have someone in your corner to talk to, uh, Rachel has a smart meter pro and wants to meet with I have one should earn A I meet worth and um they don't in my case, they do less than they might for rich on weddin because I we do all our own estate planning a off to the side and we do all of our own, for that matter, do all my own selections on the mutual funds. But yeah.

what I have found out the value for us is that they're looking at more than just investments. I mean, hours we're looking they are looking at taxes and like like real state involved that you can sell within this five year period at this. I mean, like they're kind of strategizing with you, I, me everything from our giving to investing, and I never looking at the whole thing, and that's always helpful. But my question gave to you is they're ever a point from like eric perspective, which I know is not a lot of people out there to have the substantial tie amount of money investments that you would ever pull a million out and do your own and put in an index funds and keep a million in do not mean like spread out where you're not no, it's not all under .

someone's no, I I would get happy or I am yeah. And if I can't get happy there and get happy, I want place invested in different things. But under one set of eyes, there's no advantage to diversifying your advice? No, I think not. Not your advice.

But would you ever just individually go open up a van guard and just put your .

own money for p or I an independent on these guys but that's just meet in money and their extra money laying around until I get some money for a piece of real state that they don't have to do with park in the ocean. P so um which last year was a really good thing. I made thirty percent but uh not about parking spot but the yeah .

so what three different .

investing. So like i'm not going to go to three different churches because I sort of agree with them you know no it's not and you need to find a woman, deal with the discomfort of the home and the comfort of the home. Yes, yeah, that's that's what I would do.

It's a good question. ExcEllent observation, eric. You're you're not asking the wrong question and you're asking the right question. Uh, I would just ask IT carefully and somewhat humbly but but it's a fair question that i'm gona dig into the bottom of so three things.

One is shop around, go talk to some other smart vest, a prose, see if they have a sliding scale as your guy if you've got a sliding scale and asked, are your guy, why is where twenty five grand year? What is what am I getting for that? It's a all fair questions and should be asked that you managing your money and that as IT should be.

Well done, sir. Very well done. This is the MC show.

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