Live from the headquarters of Ramsey Solutions, the Ramsey show, where we help people build wealth, do work that they love, and create actual amazing relationships. Jade Washaw Ramsey personality, is my co host today as we answer your questions about your life and your money. Open phones, 888-825-5225 Ariana is with us in Portland, Oregon, to start off this hour. Hi, Ariana. How are you? Good.

How are you?

Better than I deserve. What's up?

I am trying to figure out how I can get my husband on the same page with his out of control spending so that we can have an emergency fund to fall on and pay off some of our debts that we have.

Well, what is this matches. So I'm taking advantage of that. So I am six months into it, and I wanted to know if stick with it or you think I'm better off cutting my losses.And if you. If you had a suitcase of money laying in the backseat and the back door flew open and it was flying out, what would you do?I'd probably stop it.Yeah, yeah, you probably close the door, end it.Yes.That's what's going on. You're getting screwed, man, big time. It's the world's worst. I mean, the whole life is the payday lender of the middle class. It's an absolute horrible set of mathematics. It's the worst investment product on the market by far. The only people that sell this stuff are the people that sell this stuff. They're the only people that believe in it. I mean, all the rest of the financial world looks at this and goes, oh my God. And it's just. It's trash. So, yeah, you need to do your investing in real investments, not in something that has a poor rate of return. And when you die, they keep your money. And that's what whole life is.Now, this policy, this whole life policy. Before you do get out of it, we want to make sure that you get into a term life policy at the very least.Have you got good term insurance in place already?I have about the same amount benefit on a couple of separate policies, so I don't necessarily have the need for it. The reason why I went with this was an investment tax free, correct? No taxes at the end. That was the selling point, and that's what got me.You know why there's no taxes? You know why there's no taxes at the end? Cuz you didn't make any money and they never tax you when you don't make money. Okay, so if you put money in a mutual fund and it does not go up in value, there's no taxes at the end, correct. If it goes down in value, there's no taxes at the end. If they take so many fees out of it that the net net net to you is no gain. There's no taxes at the end. Oh, and by the way, when you borrow money, even if it's your own money you're borrowing, which is what a whole life is. Borrowed money never has taxes. You go get a loan at the bank, they don't give you a tax on that loan. There's no income tax on borrowed money, even if you're borrowing your own money. And so if you put a CD in the bank and then you go borrow against the CD and take out a loan, there's no taxes on that. Of course there's no taxes on borrowed money. So that's the biggest scam in the freaking universe. There's no taxes.Of course there's no taxes.Because making socks. Yeah.They don't usually charge you on something that sucks this bad. Yeah. Please, please cancel this stuff. Please cancel it. I hope I haven't been unclear. All right. Matt is in Baton Rouge. Hey, Matt, how are you?I'm doing well, sir. Thank you for taking my call.Sure. What's up?I just have a quick question. So I'm a relatively new listener, and I started listening just in time to hear you talk about the bank craziness going on. And I'm just curious. This might be a really stupid question, but how can the FDIC insure every deposit under $250,000? Where do they get the money? And I'm not even exactly sure what the FDIC is like. A brief crash course rundown.Sure. It stands for federal Deposit Insurance Corporation. It's the federal government writing insurance against your bank's failure. Now, do they have a pile of money equal to everyone's covered amount? Absolutely not. But your insurance company does not have a pile of money equal to everyone at State Farm totaling their car this week, either. If everybody total their car at once, State farm's gone. They don't have that much money. Okay? What they're running is they're running probabilities, statistical probability of this occurring. And so if enough banks went down at one time to destroy the amount of money that the Federal Deposit Insurance Corporation, the federal government, could get their hands on, that means the entire american economy has collapsed. And you should buy a gun.Gotcha. Gotcha. So it's publicly funded?No. Well, Matt, think of it like how your insurance works. If you have state farm, everybody's paying their premium, and they're paying into this big pile of money so that when somebody needs to actually use their insurance, there's money there. And it's the same thing with FDIC. These insured banks are paying premiums to FDIC. Okay, so there's a big stack of money.The banks fund the FDIC with their premiums, but they don't give it enough money to cover all bank failures that simultaneously occurring.No.Gotcha.But it is a lot of money.It's plenty to cover anything that's actually going to occur. But if, but, but the mathematics are. To your point, Matt, the mathematics are just like if all of State Farm autos had a got totaled in one month, they would, there's not enough. They don't have the money to cover all that because they're running it on probabilities. And so this is an insurance policy based on a, you know, a projected number of bank failures in a given decade plus a lot. And so it's a very conservative set of mathematics, meaning you could have a whole bunch of banks fail. We had a lot of them cashed out FDIC and went belly up. FDIC took them over, resold the banks, 30. All 30 across the board. And this is hard making the payments.Okay, so you're $75,000 a year single mom that has $38,000 in credit card debt after the divorce. Right. And you have a special needs child.Yes.And he would hypothetically be paying child support.I don't know. Yeah. For him. Yeah. My other daughter's gone now. She's 18 now.Yeah. So, hypothetically, he'd have child support in the special needs child, right?Mm hmm.Yes.Okay. And so you're. I'm sorry. This is a very sad situation. It is, but you're not mathematically trapped. Lots of people make $75,000 a year in the Tampa area that have $38,000 in credit card debt. And one kid, lots of people.I know we have a lot of health expenses because my older daughter actually has more health. Has more health issues than my younger daughter, my special needs daughter. They both do actually so we're constantly running the doctors, doing surgeries, doing different things, car repairs, and just, you know.That'S not going to change.Yeah.You're not stuck mathematically. You're not. If you want to be, you can decide you are, but the numbers you've given us has not got you stuck in this. And if he's having affairs and you're going to end the marriage based on that, then you're gonna have half of the credit card debt, and you're gonna have the care of a child, and you make $75,000 a year, and you're gonna go rent an apartment.I think. I think what I'm hearing is you've never been in a situation where money is managing, where money is being managed effectively. Right. And now you're about to go off on your own, and you don't have the confidence of knowing, I can take the $75,000 a year and I can manage it effectively. It can be, because it's never been enough before. Right? So you don't know, like, inside your body, you don't know that this is going to be enough, that I'm going to be able to take care of my kids, that I'm going to be able to pay the bills, and then I'm going to be able to pay this debt off. You don't know that that's.I mean, you understand that the story you told us has you all, mathematically, in with him working and earning you working and earning in the best place you've been in probably a decade. Mathematically, you're in the best place. Relationally, obviously. Relationally, obviously, you're not in the best place.She doesn't feel that.She doesn't feel that you don't have any respect for him because he didn't make any money during this time. He's a schmuck because he slept around on you. And so relationally, you got those things to overcome for this marriage to survive, if it's going to survive, but mathematically, you're in the best place you've ever been. Because with his income, if the marriage survived, with his income and you're in income, if you both decide to manage money together, you could clean this mess up rather quickly. But I don't know.We just resigned our lease. That's 2300. I mean, that where we're at, that's, like, the cheapest that we could get. So we just renewed early.That doesn't sound like someone that's filing for divorce to me, who's filing for divorce that resigns a new lease for a year.Well, I don't know. I don't. I just.I don't either. Who does that?Too much going on. Mental. I don't know.I think you just made a choice. Thinking, yeah.Yeah, you.She was like, I have no choice.Yeah, I have no choice.Well, you had to do everything. Felt like you had no choice, but.You'Re taking your choices away. But if you want to be stuck. Yeah, you can be stuck if you want to be, but you're not stuck. So, you know, I think that you guys could sit down with a good marriage counselor and invest some time and energy into this 25 year old marriage and give this a shot. Since you just signed a one year lease, I kind of think you want to do that deep down. And by the way, if you ask a divorce attorney if you're supposed to get a divorce, 100% of the time, they say yes. It's like asking a dog if it's hungry. This is the Ramsey show. Live from the headquarters of Ramsey Solutions, it's the Ramsey show. We help people build wealth, do work that they love, and create actual amazing relationships. Thanks for joining us, America. We're so glad you're here. The phone number is 888-825-5225 that's triple 888-25-5225 Jade Washaw Ramsey personality is my co host today. Sula is on the line in Hartford, Connecticut. Hey, Sulaw, what's up?Hey, how's it going? First of all, thanks so much for the work that you do. I've been following Ramsay solutions for a while now and subscribe to the YouTube channel. And I'm really, really happy with the results that I've seen following what you guys are putting out. So thanks again for what you do.Well, thank you. And I think I butchered your name. Pronounce it for me. Me.It's Salah.Salah. Salah. Okay, I'll get it right. Sorry about that. Okay, what's up? Tell me what's going on.All right, so some background. I'm 22 years old. I graduated college. I got married a year ago, or. Yeah, about a year ago. And I got a baby on the way, which has been kind of the driving factor in getting my affairs in order and.Wonderful.Yeah. So I. My big thing is I know that I make definitely gross over $100,000 a year, but I'm just struggling with just balancing everything. I feel like somehow, some way, the money's not stretching the way it should. I come from a family who definitely didn't make that much money and somehow things felt different. So I always thought six figures would be that big number, but it's just not what. It's not what I thought it would be.It's not as much as it used to be.Is it just you working or does your wife work as well?My wife was working, but we agreed that once we have a child that she would be a primary homemaker and so she's not working now.Okay, so tell me a little bit more about your debt to where you're feeling like this hundred k isn't what it used to be.Okay, so I. The primary debt that I had when I first started getting into credit cards, I would just, you know, get a 0% interest and then flip it on to 0% intro offer for a balance transfer. And I did that about three times.So how much credit card debt do you have?So yeah, now I'm sitting at about 6000 in outstanding debt. That doesn't include the month to month cards that I'm paying, but those are almost paid down to zero. Probably like a thousand between the three or four cards. I pay those fully month to month. But the one, the two that are on 0% interest, those, they end in March and they're about 6000.What's the total amount of the debt?All the balance, 9500, I believe.Okay, what else do you have?I have 5500 in student loans that of course just started being due for repayment. And my wife also has about 10,000 in student loans.Okay.How much on your car?No cars.We.I'm a car guy so we own our cars out. Right.Okay.What's your mortgage?No mortgage. I rent.So wait a much is your rent?1500 a month.Okay, and how long, how long ago did you start trying to follow our stuff? A month or two.It's been like three months. But I mean, I didn't really have much income to go off of initially. I started, I'm an Uber driver. I have a full time job with my degree effectively in it. And I also started Uber driving and I started kind of kicking that into high gear to try to get these credit cards paid off and that's been my avenue.Yeah. So you're just getting started and you've not really gotten the budget dialed in yet?No, that's really all this is because I'm looking at a guy who makes $100,000 a year. You got $25,000 of student loan debt or of debt period. Actually less than that. So I don't think it's a lot of debt, but I don't think it's the big fire and exploding thing that you think it is in your head. I think that if you guys get on a simple budget and you live on $80,000 instead of $100,000, you're knocking this debt out super fast. That's. That's if you just. Okay, we're gonna. We're gonna cut back. But if you really got crazy, you knock this out very quickly.Yeah. Beans and rice. Rice and beans. A detailed written budget on the every dollar app. You and your wife agree that we are doing nothing except eat and diapers and electricity and pay rent. That's it. Nothing. We're doing nothing until we get this paid off. And $2,000 a month. And you are free in one year.Yeah. You guys are newly married. You got baby on the way. You guys have been spending a lot. That's. That's what I'm seeing here.Well, and I'll add to this, I'll take up for you just a little bit. You live in a very high tax, high cost of living town.That's also true.Connecticut is the highest taxed state in the union and Hartford is a beautiful town, very expensive. Agreed.Yeah, I just. That's kind of my big thing is. I know it's a hundred gross, but. Yeah, I mean, after taxes, it's definitely not 100.No, I know. I know it's not. Yeah, I know it's not. But you can do that. You can still live on, even in spite of that. You can do this. Okay. This is doable in New York City, it's doable in LA, and so it's doable in Harvard.And thankfully, you have a good rent situation, too, so that's good.So I think the thing is that the piece that'll come to this is you and your wife are in agreement that for a short period of time, we're going to live like no one else. So that later we can live and give like no one else, including super big time, take care of this baby. And so you have a new reason to delay pleasure. And that's adults devise a plan and follow it, and children do what feels good. You're going to do great. So we're going to give you a gift to say congratulations on a new baby and help you get started on all this. And we appreciate you following us on YouTube. And the gift is we want you to gust you and your wife to go through financial peace university and get signed up in the everydollar app. The world's best budgeting app, and it'll break every one of your paychecks down for you. It'll show you how to use the baby steps. Exactly. And financial peace university. I'll teach you the things you should have been taught about money, but weren't taught. The things we all should have been taught about money, but we weren't taught.And so we're going to give you every bit of that, and it's completely free. You hang on. Austin will pick up, and we'll get you signed up for that. Jade, one of the things we saw with the everydollar app, you've been doing some of these everydollar webinars, is that showing people how to do the budget. By the way, you can sign up for those if you just go to the everydollar.com budgeting. And Jenna Jade will be doing those, and Rachel Cruz and George Camel as well. Anyway, one of the things we're finding is we've always said to feel like you get a raise when you're on a budget.Yes.But we've actually found a piece of research that they said, literally is ten to 15% a year.Yeah, well, most people are finding dollar 332 extra. That's just money that they were piddling away at target groceries. They're able to find that money that.I mean, so when you happen to your money and instead of the lack of money happening to you, the efficiency increases.Yeah. You get a raise and it'll feel.Like you got a raise, and then you don't use that raise to go buy a new car. That's what most people do. Most people get a $232 raise and go take out a dollar 400 car payment to celebrate.No, no, no, no.This is the Ramsey chef.Hey, guys, Rachel Cruz here. You know, some people think budgeting means they can't have any fun with money. And I know this because that was me. But the truth is, budgeting doesn't limit your freedom. It actually gives you freedom. A budget is simply telling your money where to go. And the best way to do this is with everydollar, my favorite budgeting app. It'll help you create a plan for your money that fits your lifestyle. So whether it's a spontaneous date night or an epic Disney cruise, budget for some fun, download everydollar for free today.Jade Walshaw Ramsey, personality, is my co host today. Thank you for joining us, America. Well, the stock market's been rough lately. It's been up, it's been down, and it's basically about where it was a year ago, but it was a wild ride to get to even. The facts are, if you invest $200 a month from age 25 to age 65, you'll have between a million and $2 million. No, that's not too good to be true. That's based on the long term average return of the S and p 500. Now, if you're not 25, well, that's okay. You can still get started. A huge predictor of investing success is that you actually invest. So get a pro in your corner. To help you get started, go to Ramsay solutions.com smartvestor. Our smartvestor pros are people that have the heart of a teacher, do things the way that we teach around here. They don't work for us, but we recommend them. They'll drop down a list of the smart vestor pros in your area. You can meet with all the different ones and decide which one you want, which one you match up with the best you pick.Ramsey solutions.com smartvestor. They'll guide you through the ups and the downs of the market. Louise is in New York City. Hi, Louise. Welcome to the Ramsey show.Hello, Dave. Thank you very much for taking my call. Boy, I sure need your advice.We'll try. How can we help?Okay, well, let's just say in the past, I'm 68 years old, and right now, in the past, my investments, anything I ever did was, let's just say it would make you cringe as far as money goes. However, at this age in my life, I'm about three years from retirement. I mean, I can retire now. you poke around out there and there's a different side hustle, different thing to do, no reason you can't do all of it at once. But don't go being borrowing that hundred thousand dollars from that bank and be making payments for two years while you finish up this rehab. That takes longer than you thought it was going to take. And then it takes longer to sell it than you thought it was going to take. Oh, and then you become motivated because the bank's about to foreclose. Now. You become the guy who gives somebody a deal because you're in debt to the bank. This is how. This is how that world works. Yeah. These foreclosures eat each other sometimes. So that's what I would do, sir. Thank you for being a new listener. I hope we can continue to serve you. Chances in Birmingham. Hey, Chance, welcome to the Ramsey show.Good afternoon, Dave. How are you?Great. How can we help?I was calling to get some guidance from you. I've been following you for years and you've helped me tremendously. I want to personally thank you for that. I am debt free now. However, I am running into an issue where housing prices and interest rates here in my area, in my county, livable houses are at least in the $200,000 range. And I've been working for a while to set up my down payment. However, even to get a down payment large enough to get a 15 year mortgage with a payment that is less than my. At least less than 25% of my bring home seems to be impossible.Sounds like your bring home pays low. What are you bringing home?My gross is 70,000. I think after taxes, I bring home around 52.Okay.Which. That includes health insurance and everything deductible.Yeah, we don't need what we're talking about by take home pay is not a health insurance deduction. It's just simply taxes.Gotcha.So a little different take home pay than you're calculating on number one. Number two, I'm looking for some ways to increase my income if I'm you, so that you can get into a house that you like?Definitely. See, I've been saving for the last year, which I intend to save for the next few years. I'm just afraid that by the time I have enough saved, interest rates and home prices are just going to continue to increase.Well, I think what Dave was saying is the anecdote for that. If you can get your income up and you continue to save, you're going to get there eventually, but you've got to do those things combined in order to make that happen, because here's your other option. Your other option is you stop saving today. And if you stop saving today, then you're never going to get a house. But if you keep saving and you keep trying to drive your income up, then don't you think eventually you'll get there?Absolutely.You will. You will.It's just if interest rates go to 14, you're not in the market anyway.Right through that.So you're gonna wait on it, come back down at that point. So, you know, and I was selling real estate in the eighties when they were 14. When there were 17, they came down to 14 and we thought it was a deal. But, you know, six is really not exactly a hardship compared to history anyway.I mean, you have to look at your options and none of them is good. If you stop today, you're not going to have enough money saved. And if you bought a house with what you have today, you're going to be house poor. And that's not, that's not an option for you.So Jen's, I just want to sure you, you're going to get there. Yeah.You'll get there.You're going to get there. You're going, you're going to get there. You're going to make it. Don't abandon. Don't let the fear of being priced out of the market cause you to do something stupid. Be patient. Get there. Buy something you can afford. Move up later. Thank you, sir. Appreciate you following us. That puts us out of the Ramsey show in the books. Austin, Ben, James, Zach and Andrew. The booth dudes are pulling it off. In the booth, I'm Dave Ramsey, your host. We'll be back with you before you know it. In the meantime, remember, there's ultimately only one way to financial peace, and that's to walk daily with the Prince of Peace, Christ Jesus. You can find all of our shows with the Ramsey Network app on your smartphone. It's the only place to listen to the entire back catalog of episodes. Download the Ramsey Network app in your favorite app store today. If you're a leader, your personal growth matters for your organization because whatever you lead can only grow as much as you do. I know from experience. Been CEO of Ramsey Solutions for over 30 years, and now I'm sharing that leadership and business coaching experience with you on the Entrez Leadership podcast.I'm taking your calls and helping you figure out how to overcome challenges within your organization. One episode could change your business. Check it out on Apple, Spotify, YouTube, or on the Ramsey Network app.

matches. So I'm taking advantage of that. So I am six months into it, and I wanted to know if stick with it or you think I'm better off cutting my losses.

And if you. If you had a suitcase of money laying in the backseat and the back door flew open and it was flying out, what would you do?

I'd probably stop it.

Yeah, yeah, you probably close the door, end it.

Yes.

That's what's going on. You're getting screwed, man, big time. It's the world's worst. I mean, the whole life is the payday lender of the middle class. It's an absolute horrible set of mathematics. It's the worst investment product on the market by far. The only people that sell this stuff are the people that sell this stuff. They're the only people that believe in it. I mean, all the rest of the financial world looks at this and goes, oh my God. And it's just. It's trash. So, yeah, you need to do your investing in real investments, not in something that has a poor rate of return. And when you die, they keep your money. And that's what whole life is.

Now, this policy, this whole life policy. Before you do get out of it, we want to make sure that you get into a term life policy at the very least.

Have you got good term insurance in place already?

I have about the same amount benefit on a couple of separate policies, so I don't necessarily have the need for it. The reason why I went with this was an investment tax free, correct? No taxes at the end. That was the selling point, and that's what got me.

You know why there's no taxes? You know why there's no taxes at the end? Cuz you didn't make any money and they never tax you when you don't make money. Okay, so if you put money in a mutual fund and it does not go up in value, there's no taxes at the end, correct. If it goes down in value, there's no taxes at the end. If they take so many fees out of it that the net net net to you is no gain. There's no taxes at the end. Oh, and by the way, when you borrow money, even if it's your own money you're borrowing, which is what a whole life is. Borrowed money never has taxes. You go get a loan at the bank, they don't give you a tax on that loan. There's no income tax on borrowed money, even if you're borrowing your own money. And so if you put a CD in the bank and then you go borrow against the CD and take out a loan, there's no taxes on that. Of course there's no taxes on borrowed money. So that's the biggest scam in the freaking universe. There's no taxes.

Of course there's no taxes.

Because making socks. Yeah.

They don't usually charge you on something that sucks this bad. Yeah. Please, please cancel this stuff. Please cancel it. I hope I haven't been unclear. All right. Matt is in Baton Rouge. Hey, Matt, how are you?

I'm doing well, sir. Thank you for taking my call.

Sure. What's up?

I just have a quick question. So I'm a relatively new listener, and I started listening just in time to hear you talk about the bank craziness going on. And I'm just curious. This might be a really stupid question, but how can the FDIC insure every deposit under $250,000? Where do they get the money? And I'm not even exactly sure what the FDIC is like. A brief crash course rundown.

Sure. It stands for federal Deposit Insurance Corporation. It's the federal government writing insurance against your bank's failure. Now, do they have a pile of money equal to everyone's covered amount? Absolutely not. But your insurance company does not have a pile of money equal to everyone at State Farm totaling their car this week, either. If everybody total their car at once, State farm's gone. They don't have that much money. Okay? What they're running is they're running probabilities, statistical probability of this occurring. And so if enough banks went down at one time to destroy the amount of money that the Federal Deposit Insurance Corporation, the federal government, could get their hands on, that means the entire american economy has collapsed. And you should buy a gun.

Gotcha. Gotcha. So it's publicly funded?

No. Well, Matt, think of it like how your insurance works. If you have state farm, everybody's paying their premium, and they're paying into this big pile of money so that when somebody needs to actually use their insurance, there's money there. And it's the same thing with FDIC. These insured banks are paying premiums to FDIC. Okay, so there's a big stack of money.

The banks fund the FDIC with their premiums, but they don't give it enough money to cover all bank failures that simultaneously occurring.

No.

Gotcha.

But it is a lot of money.

It's plenty to cover anything that's actually going to occur. But if, but, but the mathematics are. To your point, Matt, the mathematics are just like if all of State Farm autos had a got totaled in one month, they would, there's not enough. They don't have the money to cover all that because they're running it on probabilities. And so this is an insurance policy based on a, you know, a projected number of bank failures in a given decade plus a lot. And so it's a very conservative set of mathematics, meaning you could have a whole bunch of banks fail. We had a lot of them cashed out FDIC and went belly up. FDIC took them over, resold the banks, 30. All 30 across the board. And this is hard making the payments.Okay, so you're $75,000 a year single mom that has $38,000 in credit card debt after the divorce. Right. And you have a special needs child.Yes.And he would hypothetically be paying child support.I don't know. Yeah. For him. Yeah. My other daughter's gone now. She's 18 now.Yeah. So, hypothetically, he'd have child support in the special needs child, right?Mm hmm.Yes.Okay. And so you're. I'm sorry. This is a very sad situation. It is, but you're not mathematically trapped. Lots of people make $75,000 a year in the Tampa area that have $38,000 in credit card debt. And one kid, lots of people.I know we have a lot of health expenses because my older daughter actually has more health. Has more health issues than my younger daughter, my special needs daughter. They both do actually so we're constantly running the doctors, doing surgeries, doing different things, car repairs, and just, you know.That'S not going to change.Yeah.You're not stuck mathematically. You're not. If you want to be, you can decide you are, but the numbers you've given us has not got you stuck in this. And if he's having affairs and you're going to end the marriage based on that, then you're gonna have half of the credit card debt, and you're gonna have the care of a child, and you make $75,000 a year, and you're gonna go rent an apartment.I think. I think what I'm hearing is you've never been in a situation where money is managing, where money is being managed effectively. Right. And now you're about to go off on your own, and you don't have the confidence of knowing, I can take the $75,000 a year and I can manage it effectively. It can be, because it's never been enough before. Right? So you don't know, like, inside your body, you don't know that this is going to be enough, that I'm going to be able to take care of my kids, that I'm going to be able to pay the bills, and then I'm going to be able to pay this debt off. You don't know that that's.I mean, you understand that the story you told us has you all, mathematically, in with him working and earning you working and earning in the best place you've been in probably a decade. Mathematically, you're in the best place. Relationally, obviously. Relationally, obviously, you're not in the best place.She doesn't feel that.She doesn't feel that you don't have any respect for him because he didn't make any money during this time. He's a schmuck because he slept around on you. And so relationally, you got those things to overcome for this marriage to survive, if it's going to survive, but mathematically, you're in the best place you've ever been. Because with his income, if the marriage survived, with his income and you're in income, if you both decide to manage money together, you could clean this mess up rather quickly. But I don't know.We just resigned our lease. That's 2300. I mean, that where we're at, that's, like, the cheapest that we could get. So we just renewed early.That doesn't sound like someone that's filing for divorce to me, who's filing for divorce that resigns a new lease for a year.Well, I don't know. I don't. I just.I don't either. Who does that?Too much going on. Mental. I don't know.I think you just made a choice. Thinking, yeah.Yeah, you.She was like, I have no choice.Yeah, I have no choice.Well, you had to do everything. Felt like you had no choice, but.You'Re taking your choices away. But if you want to be stuck. Yeah, you can be stuck if you want to be, but you're not stuck. So, you know, I think that you guys could sit down with a good marriage counselor and invest some time and energy into this 25 year old marriage and give this a shot. Since you just signed a one year lease, I kind of think you want to do that deep down. And by the way, if you ask a divorce attorney if you're supposed to get a divorce, 100% of the time, they say yes. It's like asking a dog if it's hungry. This is the Ramsey show. Live from the headquarters of Ramsey Solutions, it's the Ramsey show. We help people build wealth, do work that they love, and create actual amazing relationships. Thanks for joining us, America. We're so glad you're here. The phone number is 888-825-5225 that's triple 888-25-5225 Jade Washaw Ramsey personality is my co host today. Sula is on the line in Hartford, Connecticut. Hey, Sulaw, what's up?Hey, how's it going? First of all, thanks so much for the work that you do. I've been following Ramsay solutions for a while now and subscribe to the YouTube channel. And I'm really, really happy with the results that I've seen following what you guys are putting out. So thanks again for what you do.Well, thank you. And I think I butchered your name. Pronounce it for me. Me.It's Salah.Salah. Salah. Okay, I'll get it right. Sorry about that. Okay, what's up? Tell me what's going on.All right, so some background. I'm 22 years old. I graduated college. I got married a year ago, or. Yeah, about a year ago. And I got a baby on the way, which has been kind of the driving factor in getting my affairs in order and.Wonderful.Yeah. So I. My big thing is I know that I make definitely gross over $100,000 a year, but I'm just struggling with just balancing everything. I feel like somehow, some way, the money's not stretching the way it should. I come from a family who definitely didn't make that much money and somehow things felt different. So I always thought six figures would be that big number, but it's just not what. It's not what I thought it would be.It's not as much as it used to be.Is it just you working or does your wife work as well?My wife was working, but we agreed that once we have a child that she would be a primary homemaker and so she's not working now.Okay, so tell me a little bit more about your debt to where you're feeling like this hundred k isn't what it used to be.Okay, so I. The primary debt that I had when I first started getting into credit cards, I would just, you know, get a 0% interest and then flip it on to 0% intro offer for a balance transfer. And I did that about three times.So how much credit card debt do you have?So yeah, now I'm sitting at about 6000 in outstanding debt. That doesn't include the month to month cards that I'm paying, but those are almost paid down to zero. Probably like a thousand between the three or four cards. I pay those fully month to month. But the one, the two that are on 0% interest, those, they end in March and they're about 6000.What's the total amount of the debt?All the balance, 9500, I believe.Okay, what else do you have?I have 5500 in student loans that of course just started being due for repayment. And my wife also has about 10,000 in student loans.Okay.How much on your car?No cars.We.I'm a car guy so we own our cars out. Right.Okay.What's your mortgage?No mortgage. I rent.So wait a much is your rent?1500 a month.Okay, and how long, how long ago did you start trying to follow our stuff? A month or two.It's been like three months. But I mean, I didn't really have much income to go off of initially. I started, I'm an Uber driver. I have a full time job with my degree effectively in it. And I also started Uber driving and I started kind of kicking that into high gear to try to get these credit cards paid off and that's been my avenue.Yeah. So you're just getting started and you've not really gotten the budget dialed in yet?No, that's really all this is because I'm looking at a guy who makes $100,000 a year. You got $25,000 of student loan debt or of debt period. Actually less than that. So I don't think it's a lot of debt, but I don't think it's the big fire and exploding thing that you think it is in your head. I think that if you guys get on a simple budget and you live on $80,000 instead of $100,000, you're knocking this debt out super fast. That's. That's if you just. Okay, we're gonna. We're gonna cut back. But if you really got crazy, you knock this out very quickly.Yeah. Beans and rice. Rice and beans. A detailed written budget on the every dollar app. You and your wife agree that we are doing nothing except eat and diapers and electricity and pay rent. That's it. Nothing. We're doing nothing until we get this paid off. And $2,000 a month. And you are free in one year.Yeah. You guys are newly married. You got baby on the way. You guys have been spending a lot. That's. That's what I'm seeing here.Well, and I'll add to this, I'll take up for you just a little bit. You live in a very high tax, high cost of living town.That's also true.Connecticut is the highest taxed state in the union and Hartford is a beautiful town, very expensive. Agreed.Yeah, I just. That's kind of my big thing is. I know it's a hundred gross, but. Yeah, I mean, after taxes, it's definitely not 100.No, I know. I know it's not. Yeah, I know it's not. But you can do that. You can still live on, even in spite of that. You can do this. Okay. This is doable in New York City, it's doable in LA, and so it's doable in Harvard.And thankfully, you have a good rent situation, too, so that's good.So I think the thing is that the piece that'll come to this is you and your wife are in agreement that for a short period of time, we're going to live like no one else. So that later we can live and give like no one else, including super big time, take care of this baby. And so you have a new reason to delay pleasure. And that's adults devise a plan and follow it, and children do what feels good. You're going to do great. So we're going to give you a gift to say congratulations on a new baby and help you get started on all this. And we appreciate you following us on YouTube. And the gift is we want you to gust you and your wife to go through financial peace university and get signed up in the everydollar app. The world's best budgeting app, and it'll break every one of your paychecks down for you. It'll show you how to use the baby steps. Exactly. And financial peace university. I'll teach you the things you should have been taught about money, but weren't taught. The things we all should have been taught about money, but we weren't taught.And so we're going to give you every bit of that, and it's completely free. You hang on. Austin will pick up, and we'll get you signed up for that. Jade, one of the things we saw with the everydollar app, you've been doing some of these everydollar webinars, is that showing people how to do the budget. By the way, you can sign up for those if you just go to the everydollar.com budgeting. And Jenna Jade will be doing those, and Rachel Cruz and George Camel as well. Anyway, one of the things we're finding is we've always said to feel like you get a raise when you're on a budget.Yes.But we've actually found a piece of research that they said, literally is ten to 15% a year.Yeah, well, most people are finding dollar 332 extra. That's just money that they were piddling away at target groceries. They're able to find that money that.I mean, so when you happen to your money and instead of the lack of money happening to you, the efficiency increases.Yeah. You get a raise and it'll feel.Like you got a raise, and then you don't use that raise to go buy a new car. That's what most people do. Most people get a $232 raise and go take out a dollar 400 car payment to celebrate.No, no, no, no.This is the Ramsey chef.Hey, guys, Rachel Cruz here. You know, some people think budgeting means they can't have any fun with money. And I know this because that was me. But the truth is, budgeting doesn't limit your freedom. It actually gives you freedom. A budget is simply telling your money where to go. And the best way to do this is with everydollar, my favorite budgeting app. It'll help you create a plan for your money that fits your lifestyle. So whether it's a spontaneous date night or an epic Disney cruise, budget for some fun, download everydollar for free today.Jade Walshaw Ramsey, personality, is my co host today. Thank you for joining us, America. Well, the stock market's been rough lately. It's been up, it's been down, and it's basically about where it was a year ago, but it was a wild ride to get to even. The facts are, if you invest $200 a month from age 25 to age 65, you'll have between a million and $2 million. No, that's not too good to be true. That's based on the long term average return of the S and p 500. Now, if you're not 25, well, that's okay. You can still get started. A huge predictor of investing success is that you actually invest. So get a pro in your corner. To help you get started, go to Ramsay solutions.com smartvestor. Our smartvestor pros are people that have the heart of a teacher, do things the way that we teach around here. They don't work for us, but we recommend them. They'll drop down a list of the smart vestor pros in your area. You can meet with all the different ones and decide which one you want, which one you match up with the best you pick.Ramsey solutions.com smartvestor. They'll guide you through the ups and the downs of the market. Louise is in New York City. Hi, Louise. Welcome to the Ramsey show.Hello, Dave. Thank you very much for taking my call. Boy, I sure need your advice.We'll try. How can we help?Okay, well, let's just say in the past, I'm 68 years old, and right now, in the past, my investments, anything I ever did was, let's just say it would make you cringe as far as money goes. However, at this age in my life, I'm about three years from retirement. I mean, I can retire now. you poke around out there and there's a different side hustle, different thing to do, no reason you can't do all of it at once. But don't go being borrowing that hundred thousand dollars from that bank and be making payments for two years while you finish up this rehab. That takes longer than you thought it was going to take. And then it takes longer to sell it than you thought it was going to take. Oh, and then you become motivated because the bank's about to foreclose. Now. You become the guy who gives somebody a deal because you're in debt to the bank. This is how. This is how that world works. Yeah. These foreclosures eat each other sometimes. So that's what I would do, sir. Thank you for being a new listener. I hope we can continue to serve you. Chances in Birmingham. Hey, Chance, welcome to the Ramsey show.Good afternoon, Dave. How are you?Great. How can we help?I was calling to get some guidance from you. I've been following you for years and you've helped me tremendously. I want to personally thank you for that. I am debt free now. However, I am running into an issue where housing prices and interest rates here in my area, in my county, livable houses are at least in the $200,000 range. And I've been working for a while to set up my down payment. However, even to get a down payment large enough to get a 15 year mortgage with a payment that is less than my. At least less than 25% of my bring home seems to be impossible.Sounds like your bring home pays low. What are you bringing home?My gross is 70,000. I think after taxes, I bring home around 52.Okay.Which. That includes health insurance and everything deductible.Yeah, we don't need what we're talking about by take home pay is not a health insurance deduction. It's just simply taxes.Gotcha.So a little different take home pay than you're calculating on number one. Number two, I'm looking for some ways to increase my income if I'm you, so that you can get into a house that you like?Definitely. See, I've been saving for the last year, which I intend to save for the next few years. I'm just afraid that by the time I have enough saved, interest rates and home prices are just going to continue to increase.Well, I think what Dave was saying is the anecdote for that. If you can get your income up and you continue to save, you're going to get there eventually, but you've got to do those things combined in order to make that happen, because here's your other option. Your other option is you stop saving today. And if you stop saving today, then you're never going to get a house. But if you keep saving and you keep trying to drive your income up, then don't you think eventually you'll get there?Absolutely.You will. You will.It's just if interest rates go to 14, you're not in the market anyway.Right through that.So you're gonna wait on it, come back down at that point. So, you know, and I was selling real estate in the eighties when they were 14. When there were 17, they came down to 14 and we thought it was a deal. But, you know, six is really not exactly a hardship compared to history anyway.I mean, you have to look at your options and none of them is good. If you stop today, you're not going to have enough money saved. And if you bought a house with what you have today, you're going to be house poor. And that's not, that's not an option for you.So Jen's, I just want to sure you, you're going to get there. Yeah.You'll get there.You're going to get there. You're going, you're going to get there. You're going to make it. Don't abandon. Don't let the fear of being priced out of the market cause you to do something stupid. Be patient. Get there. Buy something you can afford. Move up later. Thank you, sir. Appreciate you following us. That puts us out of the Ramsey show in the books. Austin, Ben, James, Zach and Andrew. The booth dudes are pulling it off. In the booth, I'm Dave Ramsey, your host. We'll be back with you before you know it. In the meantime, remember, there's ultimately only one way to financial peace, and that's to walk daily with the Prince of Peace, Christ Jesus. You can find all of our shows with the Ramsey Network app on your smartphone. It's the only place to listen to the entire back catalog of episodes. Download the Ramsey Network app in your favorite app store today. If you're a leader, your personal growth matters for your organization because whatever you lead can only grow as much as you do. I know from experience. Been CEO of Ramsey Solutions for over 30 years, and now I'm sharing that leadership and business coaching experience with you on the Entrez Leadership podcast.I'm taking your calls and helping you figure out how to overcome challenges within your organization. One episode could change your business. Check it out on Apple, Spotify, YouTube, or on the Ramsey Network app.

30. All 30 across the board. And this is hard making the payments.

Okay, so you're $75,000 a year single mom that has $38,000 in credit card debt after the divorce. Right. And you have a special needs child.

Yes.

And he would hypothetically be paying child support.

I don't know. Yeah. For him. Yeah. My other daughter's gone now. She's 18 now.

Yeah. So, hypothetically, he'd have child support in the special needs child, right?

Mm hmm.

Yes.

Okay. And so you're. I'm sorry. This is a very sad situation. It is, but you're not mathematically trapped. Lots of people make $75,000 a year in the Tampa area that have $38,000 in credit card debt. And one kid, lots of people.

I know we have a lot of health expenses because my older daughter actually has more health. Has more health issues than my younger daughter, my special needs daughter. They both do actually so we're constantly running the doctors, doing surgeries, doing different things, car repairs, and just, you know.

That'S not going to change.

Yeah.

You're not stuck mathematically. You're not. If you want to be, you can decide you are, but the numbers you've given us has not got you stuck in this. And if he's having affairs and you're going to end the marriage based on that, then you're gonna have half of the credit card debt, and you're gonna have the care of a child, and you make $75,000 a year, and you're gonna go rent an apartment.

I think. I think what I'm hearing is you've never been in a situation where money is managing, where money is being managed effectively. Right. And now you're about to go off on your own, and you don't have the confidence of knowing, I can take the $75,000 a year and I can manage it effectively. It can be, because it's never been enough before. Right? So you don't know, like, inside your body, you don't know that this is going to be enough, that I'm going to be able to take care of my kids, that I'm going to be able to pay the bills, and then I'm going to be able to pay this debt off. You don't know that that's.

I mean, you understand that the story you told us has you all, mathematically, in with him working and earning you working and earning in the best place you've been in probably a decade. Mathematically, you're in the best place. Relationally, obviously. Relationally, obviously, you're not in the best place.

She doesn't feel that.

She doesn't feel that you don't have any respect for him because he didn't make any money during this time. He's a schmuck because he slept around on you. And so relationally, you got those things to overcome for this marriage to survive, if it's going to survive, but mathematically, you're in the best place you've ever been. Because with his income, if the marriage survived, with his income and you're in income, if you both decide to manage money together, you could clean this mess up rather quickly. But I don't know.

We just resigned our lease. That's 2300. I mean, that where we're at, that's, like, the cheapest that we could get. So we just renewed early.

That doesn't sound like someone that's filing for divorce to me, who's filing for divorce that resigns a new lease for a year.

Well, I don't know. I don't. I just.

I don't either. Who does that?

Too much going on. Mental. I don't know.

I think you just made a choice. Thinking, yeah.

Yeah, you.

She was like, I have no choice.

Yeah, I have no choice.

Well, you had to do everything. Felt like you had no choice, but.

You'Re taking your choices away. But if you want to be stuck. Yeah, you can be stuck if you want to be, but you're not stuck. So, you know, I think that you guys could sit down with a good marriage counselor and invest some time and energy into this 25 year old marriage and give this a shot. Since you just signed a one year lease, I kind of think you want to do that deep down. And by the way, if you ask a divorce attorney if you're supposed to get a divorce, 100% of the time, they say yes. It's like asking a dog if it's hungry. This is the Ramsey show. Live from the headquarters of Ramsey Solutions, it's the Ramsey show. We help people build wealth, do work that they love, and create actual amazing relationships. Thanks for joining us, America. We're so glad you're here. The phone number is 888-825-5225 that's triple 888-25-5225 Jade Washaw Ramsey personality is my co host today. Sula is on the line in Hartford, Connecticut. Hey, Sulaw, what's up?

Hey, how's it going? First of all, thanks so much for the work that you do. I've been following Ramsay solutions for a while now and subscribe to the YouTube channel. And I'm really, really happy with the results that I've seen following what you guys are putting out. So thanks again for what you do.

Well, thank you. And I think I butchered your name. Pronounce it for me. Me.

It's Salah.

Salah. Salah. Okay, I'll get it right. Sorry about that. Okay, what's up? Tell me what's going on.

All right, so some background. I'm 22 years old. I graduated college. I got married a year ago, or. Yeah, about a year ago. And I got a baby on the way, which has been kind of the driving factor in getting my affairs in order and.

Wonderful.

Yeah. So I. My big thing is I know that I make definitely gross over $100,000 a year, but I'm just struggling with just balancing everything. I feel like somehow, some way, the money's not stretching the way it should. I come from a family who definitely didn't make that much money and somehow things felt different. So I always thought six figures would be that big number, but it's just not what. It's not what I thought it would be.

It's not as much as it used to be.

Is it just you working or does your wife work as well?

My wife was working, but we agreed that once we have a child that she would be a primary homemaker and so she's not working now.

Okay, so tell me a little bit more about your debt to where you're feeling like this hundred k isn't what it used to be.

Okay, so I. The primary debt that I had when I first started getting into credit cards, I would just, you know, get a 0% interest and then flip it on to 0% intro offer for a balance transfer. And I did that about three times.

So how much credit card debt do you have?

So yeah, now I'm sitting at about 6000 in outstanding debt. That doesn't include the month to month cards that I'm paying, but those are almost paid down to zero. Probably like a thousand between the three or four cards. I pay those fully month to month. But the one, the two that are on 0% interest, those, they end in March and they're about 6000.

What's the total amount of the debt?

All the balance, 9500, I believe.

Okay, what else do you have?

I have 5500 in student loans that of course just started being due for repayment. And my wife also has about 10,000 in student loans.

Okay.

How much on your car?

No cars.

We.

I'm a car guy so we own our cars out. Right.

Okay.

What's your mortgage?

No mortgage. I rent.

So wait a much is your rent?

1500 a month.

Okay, and how long, how long ago did you start trying to follow our stuff? A month or two.

It's been like three months. But I mean, I didn't really have much income to go off of initially. I started, I'm an Uber driver. I have a full time job with my degree effectively in it. And I also started Uber driving and I started kind of kicking that into high gear to try to get these credit cards paid off and that's been my avenue.

Yeah. So you're just getting started and you've not really gotten the budget dialed in yet?

No, that's really all this is because I'm looking at a guy who makes $100,000 a year. You got $25,000 of student loan debt or of debt period. Actually less than that. So I don't think it's a lot of debt, but I don't think it's the big fire and exploding thing that you think it is in your head. I think that if you guys get on a simple budget and you live on $80,000 instead of $100,000, you're knocking this debt out super fast. That's. That's if you just. Okay, we're gonna. We're gonna cut back. But if you really got crazy, you knock this out very quickly.

Yeah. Beans and rice. Rice and beans. A detailed written budget on the every dollar app. You and your wife agree that we are doing nothing except eat and diapers and electricity and pay rent. That's it. Nothing. We're doing nothing until we get this paid off. And $2,000 a month. And you are free in one year.

Yeah. You guys are newly married. You got baby on the way. You guys have been spending a lot. That's. That's what I'm seeing here.

Well, and I'll add to this, I'll take up for you just a little bit. You live in a very high tax, high cost of living town.

That's also true.

Connecticut is the highest taxed state in the union and Hartford is a beautiful town, very expensive. Agreed.

Yeah, I just. That's kind of my big thing is. I know it's a hundred gross, but. Yeah, I mean, after taxes, it's definitely not 100.

No, I know. I know it's not. Yeah, I know it's not. But you can do that. You can still live on, even in spite of that. You can do this. Okay. This is doable in New York City, it's doable in LA, and so it's doable in Harvard.

And thankfully, you have a good rent situation, too, so that's good.

So I think the thing is that the piece that'll come to this is you and your wife are in agreement that for a short period of time, we're going to live like no one else. So that later we can live and give like no one else, including super big time, take care of this baby. And so you have a new reason to delay pleasure. And that's adults devise a plan and follow it, and children do what feels good. You're going to do great. So we're going to give you a gift to say congratulations on a new baby and help you get started on all this. And we appreciate you following us on YouTube. And the gift is we want you to gust you and your wife to go through financial peace university and get signed up in the everydollar app. The world's best budgeting app, and it'll break every one of your paychecks down for you. It'll show you how to use the baby steps. Exactly. And financial peace university. I'll teach you the things you should have been taught about money, but weren't taught. The things we all should have been taught about money, but we weren't taught.

And so we're going to give you every bit of that, and it's completely free. You hang on. Austin will pick up, and we'll get you signed up for that. Jade, one of the things we saw with the everydollar app, you've been doing some of these everydollar webinars, is that showing people how to do the budget. By the way, you can sign up for those if you just go to the everydollar.com budgeting. And Jenna Jade will be doing those, and Rachel Cruz and George Camel as well. Anyway, one of the things we're finding is we've always said to feel like you get a raise when you're on a budget.

Yes.

But we've actually found a piece of research that they said, literally is ten to 15% a year.

Yeah, well, most people are finding dollar 332 extra. That's just money that they were piddling away at target groceries. They're able to find that money that.

I mean, so when you happen to your money and instead of the lack of money happening to you, the efficiency increases.

Yeah. You get a raise and it'll feel.

Like you got a raise, and then you don't use that raise to go buy a new car. That's what most people do. Most people get a $232 raise and go take out a dollar 400 car payment to celebrate.

No, no, no, no.

This is the Ramsey chef.

Hey, guys, Rachel Cruz here. You know, some people think budgeting means they can't have any fun with money. And I know this because that was me. But the truth is, budgeting doesn't limit your freedom. It actually gives you freedom. A budget is simply telling your money where to go. And the best way to do this is with everydollar, my favorite budgeting app. It'll help you create a plan for your money that fits your lifestyle. So whether it's a spontaneous date night or an epic Disney cruise, budget for some fun, download everydollar for free today.

Jade Walshaw Ramsey, personality, is my co host today. Thank you for joining us, America. Well, the stock market's been rough lately. It's been up, it's been down, and it's basically about where it was a year ago, but it was a wild ride to get to even. The facts are, if you invest $200 a month from age 25 to age 65, you'll have between a million and $2 million. No, that's not too good to be true. That's based on the long term average return of the S and p 500. Now, if you're not 25, well, that's okay. You can still get started. A huge predictor of investing success is that you actually invest. So get a pro in your corner. To help you get started, go to Ramsay solutions.com smartvestor. Our smartvestor pros are people that have the heart of a teacher, do things the way that we teach around here. They don't work for us, but we recommend them. They'll drop down a list of the smart vestor pros in your area. You can meet with all the different ones and decide which one you want, which one you match up with the best you pick.

Ramsey solutions.com smartvestor. They'll guide you through the ups and the downs of the market. Louise is in New York City. Hi, Louise. Welcome to the Ramsey show.

Hello, Dave. Thank you very much for taking my call. Boy, I sure need your advice.

We'll try. How can we help?

Okay, well, let's just say in the past, I'm 68 years old, and right now, in the past, my investments, anything I ever did was, let's just say it would make you cringe as far as money goes. However, at this age in my life, I'm about three years from retirement. I mean, I can retire now. you poke around out there and there's a different side hustle, different thing to do, no reason you can't do all of it at once. But don't go being borrowing that hundred thousand dollars from that bank and be making payments for two years while you finish up this rehab. That takes longer than you thought it was going to take. And then it takes longer to sell it than you thought it was going to take. Oh, and then you become motivated because the bank's about to foreclose. Now. You become the guy who gives somebody a deal because you're in debt to the bank. This is how. This is how that world works. Yeah. These foreclosures eat each other sometimes. So that's what I would do, sir. Thank you for being a new listener. I hope we can continue to serve you. Chances in Birmingham. Hey, Chance, welcome to the Ramsey show.Good afternoon, Dave. How are you?Great. How can we help?I was calling to get some guidance from you. I've been following you for years and you've helped me tremendously. I want to personally thank you for that. I am debt free now. However, I am running into an issue where housing prices and interest rates here in my area, in my county, livable houses are at least in the $200,000 range. And I've been working for a while to set up my down payment. However, even to get a down payment large enough to get a 15 year mortgage with a payment that is less than my. At least less than 25% of my bring home seems to be impossible.Sounds like your bring home pays low. What are you bringing home?My gross is 70,000. I think after taxes, I bring home around 52.Okay.Which. That includes health insurance and everything deductible.Yeah, we don't need what we're talking about by take home pay is not a health insurance deduction. It's just simply taxes.Gotcha.So a little different take home pay than you're calculating on number one. Number two, I'm looking for some ways to increase my income if I'm you, so that you can get into a house that you like?Definitely. See, I've been saving for the last year, which I intend to save for the next few years. I'm just afraid that by the time I have enough saved, interest rates and home prices are just going to continue to increase.Well, I think what Dave was saying is the anecdote for that. If you can get your income up and you continue to save, you're going to get there eventually, but you've got to do those things combined in order to make that happen, because here's your other option. Your other option is you stop saving today. And if you stop saving today, then you're never going to get a house. But if you keep saving and you keep trying to drive your income up, then don't you think eventually you'll get there?Absolutely.You will. You will.It's just if interest rates go to 14, you're not in the market anyway.Right through that.So you're gonna wait on it, come back down at that point. So, you know, and I was selling real estate in the eighties when they were 14. When there were 17, they came down to 14 and we thought it was a deal. But, you know, six is really not exactly a hardship compared to history anyway.I mean, you have to look at your options and none of them is good. If you stop today, you're not going to have enough money saved. And if you bought a house with what you have today, you're going to be house poor. And that's not, that's not an option for you.So Jen's, I just want to sure you, you're going to get there. Yeah.You'll get there.You're going to get there. You're going, you're going to get there. You're going to make it. Don't abandon. Don't let the fear of being priced out of the market cause you to do something stupid. Be patient. Get there. Buy something you can afford. Move up later. Thank you, sir. Appreciate you following us. That puts us out of the Ramsey show in the books. Austin, Ben, James, Zach and Andrew. The booth dudes are pulling it off. In the booth, I'm Dave Ramsey, your host. We'll be back with you before you know it. In the meantime, remember, there's ultimately only one way to financial peace, and that's to walk daily with the Prince of Peace, Christ Jesus. You can find all of our shows with the Ramsey Network app on your smartphone. It's the only place to listen to the entire back catalog of episodes. Download the Ramsey Network app in your favorite app store today. If you're a leader, your personal growth matters for your organization because whatever you lead can only grow as much as you do. I know from experience. Been CEO of Ramsey Solutions for over 30 years, and now I'm sharing that leadership and business coaching experience with you on the Entrez Leadership podcast.I'm taking your calls and helping you figure out how to overcome challenges within your organization. One episode could change your business. Check it out on Apple, Spotify, YouTube, or on the Ramsey Network app.

you poke around out there and there's a different side hustle, different thing to do, no reason you can't do all of it at once. But don't go being borrowing that hundred thousand dollars from that bank and be making payments for two years while you finish up this rehab. That takes longer than you thought it was going to take. And then it takes longer to sell it than you thought it was going to take. Oh, and then you become motivated because the bank's about to foreclose. Now. You become the guy who gives somebody a deal because you're in debt to the bank. This is how. This is how that world works. Yeah. These foreclosures eat each other sometimes. So that's what I would do, sir. Thank you for being a new listener. I hope we can continue to serve you. Chances in Birmingham. Hey, Chance, welcome to the Ramsey show.

Good afternoon, Dave. How are you?

Great. How can we help?

I was calling to get some guidance from you. I've been following you for years and you've helped me tremendously. I want to personally thank you for that. I am debt free now. However, I am running into an issue where housing prices and interest rates here in my area, in my county, livable houses are at least in the $200,000 range. And I've been working for a while to set up my down payment. However, even to get a down payment large enough to get a 15 year mortgage with a payment that is less than my. At least less than 25% of my bring home seems to be impossible.

Sounds like your bring home pays low. What are you bringing home?

My gross is 70,000. I think after taxes, I bring home around 52.

Okay.

Which. That includes health insurance and everything deductible.

Yeah, we don't need what we're talking about by take home pay is not a health insurance deduction. It's just simply taxes.

Gotcha.

So a little different take home pay than you're calculating on number one. Number two, I'm looking for some ways to increase my income if I'm you, so that you can get into a house that you like?

Definitely. See, I've been saving for the last year, which I intend to save for the next few years. I'm just afraid that by the time I have enough saved, interest rates and home prices are just going to continue to increase.

Well, I think what Dave was saying is the anecdote for that. If you can get your income up and you continue to save, you're going to get there eventually, but you've got to do those things combined in order to make that happen, because here's your other option. Your other option is you stop saving today. And if you stop saving today, then you're never going to get a house. But if you keep saving and you keep trying to drive your income up, then don't you think eventually you'll get there?

Absolutely.

You will. You will.

It's just if interest rates go to 14, you're not in the market anyway.

Right through that.

So you're gonna wait on it, come back down at that point. So, you know, and I was selling real estate in the eighties when they were 14. When there were 17, they came down to 14 and we thought it was a deal. But, you know, six is really not exactly a hardship compared to history anyway.

I mean, you have to look at your options and none of them is good. If you stop today, you're not going to have enough money saved. And if you bought a house with what you have today, you're going to be house poor. And that's not, that's not an option for you.

So Jen's, I just want to sure you, you're going to get there. Yeah.

You'll get there.

You're going to get there. You're going, you're going to get there. You're going to make it. Don't abandon. Don't let the fear of being priced out of the market cause you to do something stupid. Be patient. Get there. Buy something you can afford. Move up later. Thank you, sir. Appreciate you following us. That puts us out of the Ramsey show in the books. Austin, Ben, James, Zach and Andrew. The booth dudes are pulling it off. In the booth, I'm Dave Ramsey, your host. We'll be back with you before you know it. In the meantime, remember, there's ultimately only one way to financial peace, and that's to walk daily with the Prince of Peace, Christ Jesus. You can find all of our shows with the Ramsey Network app on your smartphone. It's the only place to listen to the entire back catalog of episodes. Download the Ramsey Network app in your favorite app store today. If you're a leader, your personal growth matters for your organization because whatever you lead can only grow as much as you do. I know from experience. Been CEO of Ramsey Solutions for over 30 years, and now I'm sharing that leadership and business coaching experience with you on the Entrez Leadership podcast.

I'm taking your calls and helping you figure out how to overcome challenges within your organization. One episode could change your business. Check it out on Apple, Spotify, YouTube, or on the Ramsey Network app.