Live.

From the headquarters of Ramsey Solutions. It's The Ramsey Show where we help people build wealth, do work that they love and create amazing relationships. I am Rachel Cruz hosting this hour with my great friend and Ramsey personality, Jade Warshaw. And we are here to answer your questions again about your life and your money. It is a free call anywhere in the country at triple-8-825-5-225. All right, we're going to go to the phones at this hour and we have, is it, Diane, possibly, in Dallas? Hey, welcome to the show.

Hi, thanks for taking.

The call. Absolutely. How can we help?

So I'm a new listener. I just came across you guys recently and heard you give them some great advice and hope that I can get some as well. I have a pretty significant student loan debt, about $230,000.

What did you get your degree in?

Business administration, and it's a master's, too. So it was two degrees, but still quite a hefty tag. And then I have basically no savings or anything. So I'm just trying to understand how I can maybe chip away at this and get myself on track. I'm 49, so.

I don't know if I can get.

Into this position. Is it.

Just you? Is it just you or do you have a family? Are they married?

I'm married.

Okay. And does your husband have any debt or just this one student loan you guys have together?

No, just this one student loan.

Okay, well, what do you guys earn?

I earn about 170 in base, but I also have an annual incentive of another 20 %, so maybe 50-60 %. And then I do have these stock incentives that I can cash in once.

A year. What can you get?

Sorry, what can you get if you cash in the stock incentives?

It just depends on what the stock is trading at the time, but probably around- Hallpark.

-about.

20 to 30.

What about your husband?

He doesn't work right now.

Okay, and why is that? Sorry, I'm hitting you with the questions, but I'm trying to get a clear scope of what's going on.

Yeah, just haven't. But he's trying to start his own business. So we're basically a one income family.

Right now. Does he feel... How long has he not been working?

About two years.

What?

Is he feeling the weight of this debt?

I do.

I know you do. You're calling.

It sounds like you guys have a separate thinking when it comes to money and debt. It sounds like that from the way you're talking. I'm just going to be honest. I don't like that this guy hasn't been working for two years. I'm all for starting a business venture and going out on your own. But I do think that you have to be making a certain amount. You have to still be contributing financially while you do that. That's the best way. So you're bridging your way to it as opposed to just stopping. And, I mean, you got to make $10 before you make $100,000. So it's like, if he's not making anything, how long is it going to be until this business really generates income that's going to help you guys become debt free? You see what I'm saying? When he could go get a job tomorrow making $50,000.

Yeah, because the truth here is that with the extra bonuses that you were saying, I mean, you could make $230,000 in a year. So here's what's wild, is what you could think about. If he went and worked and he made $60,000- That's it. -you guys could live on that. You could have this paid off in twelve months. And that's not even side hustles that we can get into. That's not even cutting lifestyle. I mean, yeah, that would be cutting lifestyle.

That's just him contributing.

Yes. And so what you have to realize, the bigger picture here is that you can, if it's just you working your way out of debt, you could go and lower your salary, and it would take you probably three years to pay it off on yours. And that's possible. That is doable. But what we want to always give you is a plan, or the fastest, most effective way to get out of debt. And the clear, obvious missing piece of this is that there's not another income. And again, if he's home with the kids and that's your child care, if there's reasons- That's a little different. Yeah, there are reasons for people to have a one-income household. But there's also people that even have that situation that choose to go to work to get it paid off even if they want to be a stay at home parent. But for you guys, I mean, this is... And so to me, again, the bigger problem is that you guys aren't on the same page. Because if you're on the same page, you could knock this out in a year versus three and a half years. And so I would really encourage you guys, if you stay on the line, I want to give you guys Financial Peace University.

This is our nine lesson course. And if you can communicate your level of stress and anxiety and fear that you're feeling or hearing that you called us, so we know that it's there, and start to understand the why. It's not this like, Well, you're not doing that. It's not a blame game. It is a, Where you're at? Where am I at? And this is what I'm feeling. And my prayer is in somewhat of a marriage. At any degree, a spouse would look at a spouse and say, My gosh, I don't want you to feel that way. 100 %. What can we do to do to work on that? And if you can't come to the table because some people cross their arms and like, Oh, that's up to you, then it becomes a marriage problem, and it's not a money problem. So you start to see these layers of what's happening. But I think it's really important for you to recognize that, because you can just fix the money thing. You can get out of debt in three years if you just sacrificed on- But.

The good news is, even if he never contributed, you're going to be sitting in the average spot where you pay it off in 12-24 months, and it's going to be gone and behind you.

But I- We want something.

More for you. Yeah, and there's something about you working together to get it gone. Absolutely. Because if you just say, whatever, I'm going to use my income. He doesn't have to know about it. I'm going to pay this off. There's always going to be that thing between them that's like, well, it's mine and it's yours. This is the time where you really get to come together as a couple, and I would hate them to miss out on that.

Yeah. So stay on the line. We're going to get you that. And my hope would be that you guys could walk through these lessons together, watch them together, start these conversations because, again, a plan can happen. So here I say, you can pay this off. You have a great salary. You could reduce it, not live on as much and tell him, sorry, but I got to because this is what we're doing. Here's our new set salary for the household, and we're going to figure it out. But if you guys can work on a team, not only does it help the money situation go so much faster paying off debt, but it helps your marriage, which I think, Jade, this is exactly what you wrote about in your quick read that's coming out, which is money is not a math problem.

Hey, got it.

Right here. And there it is. So you can actually preorder it right now, you guys. It is brand new. It comes out December fifth, which is coming up, which is so exciting. So it's only $10. And if you pre-order, they actually get an exclusive Q and A with you.

That's right. They get a Q and A.

Yeah. So you can do that. And I love this, you guys, because it's a quick read. And so for you all out there that are like, Oh, my gosh, it's intimidating to dive into all of this. And I don't know where to start. This is honestly the perfect first step.

Read it in two hours.

Yes, you're going to relate to it. It speaks exactly to the problem that so many people are having is that personal finance, it's 20 % head knowledge. It's 80 % behavior. We are the ones that we have to control. And gosh, Jay does a beautiful job walking through that. So go to ramselysolutions. Com/store, pre-order that quick read. Money is not a math problem because that's what we talk about all the time on this show because it's the truth. It's a we problem, right? It's a me problem. That's right. It's what.

You believe. It's what you believe.

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The Ramsey Show. We are taking your calls. Again, it's a free call anywhere in the country at triple-888-8255, 225. Up next, we have Jack in Boston. Hey, Jack, welcome to the show.

Hey, thank you guys for.

Having me on. Absolutely. Thanks for calling in. How can we help?

So I am a recent college graduate. I'm 22. I just graduated this past May, and I started working this June. When I was originally making plans for this year as I'm entering the workforce, I had taken a job in the Boston area. And so I had a few of my college buddies. So there's three of us and we signed a lease and that's currently where I am. After signing the lease, I actually received a second job offer, in which case I work remotely. I ended up taking that offer. And basically, I'm calling to ask, because I work remote, I spend about $1,200 a month in rent. Then, of course, there's utilities and a bunch of stuff just because the area is expensive. How beneficial do you guys think it would be to move back in with my parents to help me clear some of my student loan and car payments?

How.

Much student loan debt is it? And how much is your car?

So the student loans are about 27. The car is about 22. And I make 72.

And you make how much? Seventy? Seventy-two, yeah. Seventy-two, okay.

If it were me, I think that you have a great income starting out. I mean, to make 72 starting out at 22 years old, I think is excellent. I don't think that your rent is especially high. It's not like you're like, I'm spending $2,000 a month. I personally would not move back with my parents. The only question that I was... What I thought you were going towards is I have these roommates and it's super loud and I can't get any work done. I thought you were going to go down that pathway, but it doesn't seem like that's the issue. I think that you can buckle down and pay off this debt. Your $22,000 car is... I don't love that, but it's within the threshold, so I'm not mad. How quickly? Have you done a budget? Do you know how much money you have left over after rent, after groceries, after gas that you could put towards debt?

Yeah, sure. Each month after I make all my payments, I save around $800 to a thousand dollars already.

Oh, good. That's good. Yeah, Jack... Okay, so this is always a tough question because mathematically, you would think our answer would be like, Absolutely, whatever you can to reduce expenses and throw as much as the debt, yada, yada, yada. But what that doesn't factor in by just using that escape and using that plan is that there is something to be said about that Jack signed up for the student loan and Jack signed up for the car loan. And so Jack needs to figure out how to do this. And after you do it, there is something about this dignity as a young adult that you're like, Oh, yeah, I had a problem, and I solved it. Now, could part of that solution be you move home with your parents and there's a very strict plan that you're only going to be there for 12 months and whatever, whatever, whatever. Sure, right? I'm not one of these people that's like, Never, ever do that.

But it's.

Not, but I do lean towards, Jade, that there's a part of me, Jack, that I'm like, I think you're a grown man, and I think that you can figure this out. I think you could take a side hustle at night to bring in some more money. I just was doing an every dollar webinar yesterday, and we talked about side hustles. And there's so many people that we're making anywhere from $800 to $2,000 a month doing a side hustle. So I think there's ways to earn extra income. And again, if you had a really diligent plan, and it was again, something that you're like, there's a time frame. I know what I'm doing, and I'm going to do it and be done and get out like you could. But I don't know, Jack, there's a part of me that I'm like, I think that.

You're- I just like you having your freedom.

Yeah, and not moving back in with mom and dad. It just does something to an adult mind. And I always use this example, it's a stupid one. But when you open up the refrigerator and there's no milk and you don't have Brett, and you're like, Oh, man, I have to be an adult and I have responsibilities and I have to figure out how to make life work. And there is just that extra safety net when you move home naturally.

Yeah, mom's going to go get the milk.

Yeah, you're going to be taken care of, which is fine. But I think it's stunty. There's a level of this personal responsibility and being an adult. And if you start dating and like, I don't know, just all this stuff, just moving.

Back home. Look, the dating. It's the dating for me, Rachel, because I would be thinking the same thing, Jack. If I met you and I'd be like, Jack's great. And then I'm like, Wait, but we're going to your mom's house? There would be just this little piece of me that I'd be like, Oh, man. So for that reason, this is like Shark Tank, for that reason alone, I'm out. But the other thing I wanted to ask you just about your money is, are you contributing to a 401(k) through your work?

I am, yes. My employer matches four %, so I put four % to 401(k) and then another six % to a Roth IRA.

Okay, so just a piece of advice, and this is the way we teach. Right now you're giving away 10 % of your income. And if it were me, I would pause that temporarily and get that money back in my hands so I can quickly pay off this debt. By the way, even if you did choose to go to your parents' house and live, I would still do that because the whole point is, let's get this debt wiped up as quickly as possible. And then when your debt's gone, you'll have so much more money that you can be investing another five % when the time comes to be investing 15 %. And I love that way more for you. Do you happen to have any safe... Do Eric get rid of him. And by the way, Jack, if you have any savings laying around, I would also throw that towards your debt because something tells me, Rachel, that he is a guy that might have a little bit of savings in a.

Little pile somewhere. Yeah, so if there's anything extra, Jack, just throw it on this debt. And I think you can do this. I think you can get out without having to move back home. I understand, again, the math side of it. So if that's what you choose to do, it's not a completely wrong decision. But there is something in the holistic picture of who you are as a whole person that I think there's something about just being on your own and figuring out. But I think it's great. All right, up next we have, Grace in Salt Lake City. Hey, Grace, welcome to the show.

Hi, thanks for.

Taking my call. Absolutely. How can we help?

I have a little question because my... Well, okay. Sorry, I'm talking in circles here. So I'm wondering if I should get life insurance for my daughter. She's 10 months old. My mom got life insurance for me when I was a baby, which is awesome. But my husband doesn't have any life insurance at all. And so he's like, it doesn't matter. And I'm like, well, but it would be nice. And I just want to hear your take on that.

Yeah, for sure. Okay, so a rule of thumb is that your insurance and your investments should always separate. And usually when it comes to children getting life insurance, there's a level of whole life in there. There's an investment vehicle within it, and it ends up being an entire financial product that is always not a good product, essentially. Because what you want to think about with life insurance is that if someone is dependent upon your income, you want life insurance. So your husband needs life insurance, crazy. You, even if you're a stay at home mom, need life insurance. But we recommend term life and go down that path. Anything, like there's Gerber insurance. And again, a lot of whole life- Terrible. Yeah, a lot of whole life policies will market to children. And they're like, Oh, yeah, if you put this in, and then it's going to grow to this. Honestly, the whole product is just crap because the investment inside is not great, and your baby doesn't need life insurance. Right, the.

Whole purpose is if something, God forbid, was to happen to you or husband, you want to make sure she's taken care of, because right now you guys provide everything for her. So if your baby were to have life insurance, if God forbid something happened to the baby, then you guys would reap the money from it, and that doesn't make sense. It makes sense that if something were to happen to you or your husband, there would be a ton of money there waiting for her that whoever her caretaker would be, she would be just fine. So it's flipping your mind on why do we take this out and what's it really for?

Yes. And again, people will throw in the whole investment side. But again, if you open up a whole life policy and she goes and tries to cash it out at 18 or something and changes it up, what she could have had if you had just invested it in a mutual fund under an Upma account or you even put into a college fund for her, like a 529, would be leaps and bounds more money. You would gain way more of a rate of return and interest on that versus the crappy investments that sit inside of life insurances. So it's a great question, Gracey. Again, she does not need life insurance. You and your husband need life insurance and term life. And we always recommend Xander Insurance. So if you go to ramseysolutions. Com, you can find them on our site. They're where we get our term life insurance, my husband and I, because they have great rates. They shop all different services. It's not just one provider that they look at. And so life insurance to all of you listening, if someone is dependent upon your income, you need life insurance.

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Love it. Today's question comes from Amy in Louisiana. She says, How do you navigate social situations while trying to stick to a budget? I recently volunteered to help with a friend's baby shower, and my husband and I agreed upon a certain number to spend on it. The girl whose shower it was connected me to another friend who wanted to help host, who I had never met. In the planning conversation, I asked her what her budget was and told her the number I could help with. She said she didn't have a budget, but my contribution was fine. Long story short, the shower ended up being bigger and more expensive than I expected. It's way over my budget, and she asked if I could reimburse her to pretty... If I could help reimburse her to pretty close her half, to close up, close the gap. There's a typo there. This is awkward. I feel like it tried to set expectations, but here we are, help.

Oh.

Jeez. Wow. Look, I almost lost it whilst reading, obviously. Here's the thing. You told her from the beginning.

Yeah.

Rachel, correct me if I'm wrong, because this... Look, this is what Jay would do.

Go, Jay, go. Go, Jay, go.

If I told you from the beginning, I can spend $200, then I am spending $200. And if she, who did not have a budget, said, That's great. Whatever your contribution is, that's fine. If she already said fine, then at that point, if she chose to buy other things, I am not reimbursing you. Matter of fact, I'm going to go like, Well, why would you spend more? I would be asking her questions as to why she chose to spend more when she could have easily just matched my budget and it been even 200-200. Yes.

I know. Whoa. So, Amy, I mean, honestly, you did such a... You're so wise in it. I'm like, you knew going in. Here's my budget. Talk to your husband about it. You had a said amount. You communicated that. And the other person chose to do something different, and that's not your problem. It's sure not. That's not your problem. You set expectations. So honestly, if it's a girl you've never met, you probably will never see her again. So I wouldn't worry too much knowing myself. I'm probably more of a people pleaser. So I feel like I would even find the text thread, hopefully.

Which- And send.

The screenshot. Yeah, and just say, Hey, so sorry, my husband, we had put this money aside. This is all we could do. I mentioned that to you earlier. Here's a shot of our conversation. I'm so sorry. Let me know if there's anything else I can do in to help. Not money-related or something. But yeah, I mean, eugh.

The silver lining is, This is a person she's never met. Now, if this is like -.

If this is a.

Friend - A.

Friend, I mean -then that is really awkward. But again, I think you have to stick to your guns. Now, if you had not communicated an expectation and you show up, and it's all... Then that is like, Oh, man, but on the front end. So you guys, everyone listening or watching right now, this is a great lesson that if you go into an event, a social event, which happens all the time, whether it's wedding showers or weddings with a wedding gift, teacher presents. A lot of our classes will pull money together to get one teacher gift. If there's any type of group situation and you have a set amount of money, don't feel any level of, I feel bad that I have a set amount, communicate it and say it out loud because it's going to give you peace. It's going to give you control. And the more practice you have talking about money and social situations, I think the easier it becomes. It can't feel awkward at first, but...

And I think probably one other thing, and maybe who knows if she did it or not, but as the planning commences just being a reminder, remember, I'm only going to be able to spend 200. So if she's suggesting, Oh, it would be so cool if we did these little balloon thingies. Okay, but remember, I can only spend 200 dollars. Oh, but like, Oh, I found this great little caterer. Da da da da. Yes, but remember, I can only spend 200 dollars. As long as you make that the mantra that you're saying over and over, then there's no room for anybody to...

It's so funny, Jade. I'm like, these just social scenarios, whether it's kid birthday parties or, again, showers or anything that has a level of a... What's it called?

Like a group funding?

Yeah, but like the vibe, like the esthetics. You want the esthetics to be beautiful, 40th birthday party, big celebrations, all of that. There is this balance of you want to celebrate people. So if you're putting something on for someone, a good friend, you want to celebrate that person. That's right. Or if it's you throwing it for X, Y, and Z in your family, you want it to be nice. I get all of that. Otherwise don't volunteer. You want it to be beautiful. But also, you guys have just gotten out of control. The expectations of all these events- It's crazy. -is crazy. So it's not normal. Just so you know that it's not normal to have food trucks at your two-year-old's birthday party at a bounce house. That's not normal, but it's become normal. So we have this expectation that this is what our life should look like to some degree, and it's not.

I heard plenty of stories about bachelorette parties. Oh, my gosh.

Where it's like- Because you're actually getting married right now? I listen to girls that are getting married, and they're in the bachelorette parties and the wedding showers and the weddings.

And there's a trip. If there's a trip involved. Oh, yeah.

There always is now. I was like, Only the Cardassians did that. When I was getting married 15 years ago, I was like, People didn't go on these extravagant trips.

At least we're in the end. You have to fork over some major cash to be in a bridal party.

These days. I wish we all could just like, all the women in America could lock arms and just make a pact that we won't do this to each other. We were all just together. No more. We will all just together, our big birthday party, everything like, it's okay. It's okay. We're not doing this.

Yeah, I'm not doing it.

It's hard. So, so hard. But again, clearly verbalizing what you can do is wise. It's not awkward. It's actually very, very smart for you and your money. That's right.

Good.

Job, Amy. All right, next we have, Joey in Manhattan. Hey, Joey, welcome to the show.

Hi, good afternoon. Thank you so much for taking my call.

Absolutely. How can we help?

Yeah. So I can explain a little bit of my situation, but essentially, I am 23 years old. I make about $60,000 a year. And I want to save up for a house. And I know that the traditional rule is to pay cash for it. But my parents struggled with debt as I was growing up, so I'm a really big saver. And for that reason, I try to prioritize Roth IRA, different stocks that I have. I also have life insurance, which I'm sure people have some opinions on. But I guess to boil it down, my question is really, how much should I be saving to buy something? Because I'm a little bit against renting, even though I know that that's totally okay if that's still worth me to save.

I love that you're thinking about all of this and you're trying to make smart choices with your money. I would applaud you on that. You mentioned paying cash for a house. Yeah, if you have the patience and the funding to save up and pay the whole thing full out in cash, I think that's great. But if you don't want to do that, that's also fine. I'd look for some situation where you're paying at least 20 % down since you really were hoping to go the cash option, at least 20 % down. I'd look for a 15-year fixed conventional rate mortgage. And if you don't mind, I would just love to poke a few holes in how you're doing this because I think you might be able to do this in a more effective way. Do you mind? Absolutely.

All right. Yeah, no, go ahead.

So you mentioned stocks that you had? Yes. Can you tell me a little bit more about that and how much is there?

Yeah. So I have about 8,000 spread across regular stop stock that I just invested on my own via the Robinhood app. Different things like Apple, Facebook, Tesla, just big famous stocks that I know will do well over time. In addition to that, I do invest just on the app called Acorns. I have my Roth IRA through them. I have another 12,000 just invested in one of their aggressive set. So it's just different stocks that they pick for me and manage.

Okay. What percentage do you put towards that?

It's not a percentage. Well, I don't know what off the top of my head. I do normally about 1,000 a.

Month, depending on where the rest is. My point in saying all this is you might have a little bit more to put towards this than you think. I'd probably stop with the stocks. And if you wanted to get here sooner than later, I'd probably put some of that stock money towards saving for a house, especially if you already have 3-6 months saved. Anything that you save up past that is really going to help you get that down payment quickly. So for me, if I had those six months saved, then I would probably liquidate those stocks, put it towards a down payment. And if there is any other cash laying around above three to six months, I'd use that to start building that savings for a down payment.

As well. Yeah, any non-retirement, Joey can go towards that. It's great. This is The Ramsey Show.

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Welcome back to The Ramsey Show. I am Ramsey Personality, Rachel Cruz hosting this hour with my friend and Ramsey personality, Jade Warshaw. And Thanksgiving is coming up, you guys. And I wrote a kid's book called I'm Glad for what I have. And so the idea of gratitude and contentment and all of that is so key. And again, it's part of the holiday that we are in even this week. So if you have not had a chance to grab a copy for your little ones or the little ones in your life, I'm glad for what I have. Learning contentments and learning spoiler alerts that God's love is the thing that fulfills you. Apparently, I haven't said that enough. And some of my Amazon reviews were like, It's religious. They didn't tell us. And I was like, Oh, gosh, sorry, spoiler alert. It's God that fills us and brings deep contentment. Interesting. But these little animals go through understanding that their stuff is not bad, but they start to believe if I can just have more and more and more, I'm going to be happier and happier and happier, which we can fall into that mindset as adults, too.

And at the end of the day, we all know that it just doesn't fulfill us the way we think it does. So I'm glad for what I have. My new children's book, you can check that out at ramsysolutions. Com/store. Love it. Up next, we have Ryan in Raleigh, North Carolina. Hey, Ryan, welcome to the show.

Hey, how are you guys?

Thanks for having me. Absolutely. Thanks for calling in. How can we help?

So I have a few questions. I guess I have a pretty decent amount of money saved. And I was wondering how to go about making it more of a passive income and just seeing if there's anything better I could be doing with my money than what I'm doing now.

Yeah, it's a great question. Okay. So how much money do you have saved?

Just a little over 150,000.

Okay. And what's it in now?

Mostly CDs.

Okay. And do you have a... Do you have any debt, Ryan? No. No debt. And do you have any other savings besides this? Any retirement?

Well, that's money that I just have set aside that I don't touch at all. So I guess that would be towards that. Yeah.

Okay. But do you have a Roth IRA or a 401K?

Yes. Yeah, and I have a TSP also.

Cool.

Okay. And how much money do you make a year?

Now? Not too much. I take a pay cut. I'd say, like 50,000 now.

Okay. Perfect. And what's your living situation? Are you renting? Do you own a home? Where are you at with that?

I'm in the military now, so I don't own anything now.

Okay. Just military housing?

Yes.

Okay. What branch are you in?

Ir.

The army. Okay, great. Well, thank you for your service and sacrifice doing that. We greatly appreciate it. So, yeah, this is a good amount, Ryan. I'm very impressed that you saved $150,000. You have it in a CD, and I think you're right. I think you can put it somewhere that can actually get you a little bit more, make more.

I'm just curious, when you said passive income, did you have something in mind? Is there something that you were thinking of that you wanted to run by?

I mean, I've only looked at property, really. But other than that, nothing really. But I don't know what the best thing to be doing with that is.

I can tell you what I might do. Yeah. So I'm assuming you have no debt.

Yeah, no debt.

And other than this is the only savings you have. This is what Jade would do. I would probably set aside what I think my expenses are for about six months, and I'd put that separate in a high yield savings account. And then if it were me, how long do you plan on being in the military in the way that you're hopping around?

I guess it depends on how it goes.

Probably five years. My next goal would be setting aside enough money that when I'm done with the military or where I'm more stable, where I could buy a home and cash.

Okay.

So I'd probably invest it. You said five years. I'd probably just throw it in an S&P 500 account and let it sit. And in five, six years when I'm ready for it, chances are it will have grown. And I would-.

Or at least use it for a big down payment. A big down payment, yeah. Because, Ryan, I think the first goal would be your owning a home is one of the big pieces of your financial picture. And so we want you to be able to do that and then eventually own it outright. So what Jade is saying is right, that if you can just buy it with cash outright your primary home, then obviously that's not going to be passive income like your question. But it starts to get you towards a financial stability. Because if you just dream for a second and think, Oh, my gosh, if you put 50 %, or 75 %, or 100 % down on your home, and even if you took out a small mortgage and you paid it off, then that same ability to save Ryan that you have now is still probably going to be there in who you are. That's a part of you. You're a natural saver. You're looking for ways to make money. You're looking for ways to even ask about passive income. And then from there is where you can say, Okay, I'm going to put some away for retirement.

But also, yeah, maybe I do go and I buy a property in cash and flip it, and maybe resell it, and you can be in that game with cash or hold on to it and rent it out. But all of those things are secondary to your primary residence. That would be the next big spot. But I'm with Jade. I mean, a vengard account, yeah, putting an index fund like an S&P 500, it's going to be better than a CD. You'll get a better rate of return on your money. Yeah, so that's probably... I would do exactly what Jade said. I mean, I lean towards that. It's not as sexy and flashy as passive income.

Right. But is it really passive?

But it's stability. You're setting yourself up for the future. Did you tell us how old you were? How old are you? I'm 27. Twenty-seven. Okay. So, yeah, I mean, there's plenty of time to do all of this. And, yeah, you could look up in 15 years and have some great cash to get into the real estate game and do it without risk with cash and all of that. But I think at this place, I think the next wise step, once all this settles. And again, the S&P 500, if you get some growth, you'll pay some taxes on it, but you could take it out and use it if you wanted to, right? But I would probably just let it sit there because you don't have a lot of it. Youy may not have a lot of expenses. You have no debt. There's no real reason for major passive income right now. That's right. Would you agree?

Yeah, I agree.

Yeah. But again, I like where your mind is at because I think that's more of a long-term play to be looking into that realm. But I think that it's going to be sooner for you, Ryan, than some people listening because you've set yourself up really well. 100 %. Yeah. Good job. Yeah, I mean, no debt and $150,000. So well done. Up next, we have Adam in Pittsburgh. Hey, Adam, welcome to the show.

Hey, you guys. Thanks for taking my call.

Absolutely. How can we help?

So my wife is employed by a company that grants stock to all employees. And she's been with that company for quite a while now. And we've gained actually quite a bit of stock. And I was unsure what to do with that... With that stock has actually come to the point where we have enough to pay off the mortgage to.

Our house. Amazing. And we're curious if.

That was a worthwhile sale to pay down the mortgage, essentially.

One, two, three.

Yes. Okay. Yeah, for sure, Adam. I mean, the company's stock, we always... I think it's a nod to them. That's a great thing. But you're stuck into one stock. And Enron is always the name that comes to my head, right? Oh, gosh, yes. So there's always going to be risk. Even if it's a company you work for and even if it's a great company, you're still not diversified. So we always do recommend not to put so much into company stock. So if you guys have that much, I would, Adam. I would cash it out, pay off your home.

It's going to feel so great.

How much is it? How much do you guys have left?

It's about 200 grand.

Come on. Amazing, Adam. Do you guys have any other debt?

But it's a sub three % interest rate. And that's the only reason where I'm waffling on that decision because maybe that is a nice sum for retirement one day. But I don't know if that outweighs not having that mortgage at this point in.

Time, but- Right. I hear what you're saying. But I- my question. Yeah. No, I hear what you're saying. But I also think that you can get a better rate of return by you guys putting money away for your retirement and not dependent upon the employee stuff. That's right. So I would put retirement in you and your wife's control in 401K or a route IRA that's more diversified and mutual funds and go that route, have your house paid off. And you guys can throw so much money in retirement and have an incredible retirement. So well done, Adam. Well done. Thanks, Jay, for being a great co-host. Thanks to all guys in the booth for making the show happen. Thank you, America. This is The Ramsey Show. Live from the headquarters of Ramsey Solutions, this is The Ramsey Show, where we help people build wealth, do work that they love and create actual amazing relationships. I am Rachel Cruz hosting this hour with my great friend and Ramsey personality, Jade Warshaw. And we are again answering your questions about your life, your money, your relationships, your career, anything and everything, give us a call at triple-8-825-5-225. All right, so we're going to go to Van Koover with Juliano.

Juliano, what a great name. Welcome to the show. How can we help?

Hi there. Thank you so much for having me on Long Time Listener, first time caller. I had a question. So we're actually moving to Indiana in about six months. We're just waiting for my immigration papers to go through. I have the pleasure of marrying an American.

Okay. Great. Well, welcome to America, Juliano. Thank you very much. Okay. So you guys are getting married. You're moving down to Indiana.

Yeah. So we have a townhouse in Vancouver, and the market here has just been crazy. We've done very well just by owning. So we're looking to enter the US with approximately $300,000. And I'm looking to try and purchase a house that's under that limit in order to be mortgage-free. We're both 29. Whereas my wife is pushing a little bit to maybe have a little bit nicer of a kitchen or a slightly bigger property and go more up to the 350-400 range and have a small mortgage. My big concern there, obviously, I value the advice you guys give is to try to be mortgage-free, but I'm about five months into starting my own business. And the idea of being mortgage-free gives me peace of mind knowing that I don't have to maintain such high monthly debts. So how do I talk to my wife and, I guess, compromise or get to see my my wife.

Yeah. Interesting. How much are you guys going to be bringing in a year? Do you know?

I have an opportunity to work for a bank in the US, which would bring in about 100,000. But I'm currently trying to pursue my own business, which I'm trying to make the same amount, but it's only been about.

Four months. Okay. Sorry, are you making anything from your own business?

Not yet. No, but our product goes live in about a month or so.

Okay, that's great. And what's your wife make?

My wife's a stay at home mom. We have three lovely children.

Okay, so great. Have you looked to see what... I'm sure you have. I don't know what the market is for around under that $300,000 mark?

Yeah. In my own opinion, I believe I can compromise a little bit more and for around 250, the home size meets all of our family needs. It's really, I guess, just the trimmings and slightly bigger size of properties with my wife's wanting for the family.

What does 250 get you? Be specific.

A four-bedroom, three-bathroom, 2,000-square-foot home on maybe a 4,000-square-foot-lot.

Okay. And how old? Fairly old or?

15 to 20 years old.

Okay.

Oh, man.

I don't think either of you are wrong. I was going to say I.

Can understand where your wife is coming from.

I can. And, well, the reason I understand where she's coming from is because you can afford easily to do that. If you have $300,000 in cash, taking on a $50,000 or a $100,000 mortgage, you'll be just fine. Yes. I honestly think that it could be... I'm going to do a little bit of girl math here. I honestly think it could be a little worth it because if it's a newer, nicer property, there may be less in repairs when you first get in. So it's like, do you want to pay for less headache upfront? Or do you want to pay less and when you come in, it's like, All right, we got to switch the carpet. All right, we got to do something about this weird tile in.

The bathroom. We're going to replace the kitchen cabinets in two years. We're going to want to do all these things when it could be more done on the front end with a very small mortgage. Yeah.

I'm voting. Can I place my vote? Can I put my ballot in? Absolutely, yes. I think I'm voting Team Wife. This is only because... Well, before I vote Team Wife, do you have any other debt?

No other.

Debt, no. Do you have any money saved besides the 300k?

We have 25,000 saved. It's not earmarked for retirement or education. It's just general savings.

Yeah, just as emergency fund.

Sorry, I just call it emergency fund.

Yes, and there is a little bit of debt, actually. It's just the debt that I'm accruing from starting my business. What's that? We're looking currently at about 40,000.

Oh, that's a little bit.

No, so the money we're entering with the US at 300, I've factored in that we're going to be paying this debt down as well.

Well, what I would do is I take some of that. I take $40,000 of the 300K and pay it off completely. Because if you want to talk about going into your new business, whenever that is, it sounds like you're trying to build that bridge now, that for me would provide more stress. Having debt on the business would give me more stress than having $50,000 on a home. Because with your home, at least it's a forced savings account. Every time you make a payment, more goes into the equity, right? And more goes onto that principal. But with this debt hanging around, I'm sure there's an interest rate attached. Plus, there's just the stress of, Oh, my gosh, I've got to make this thing successful, because if not, we're left with this price tag, and working from that place of debt is never what I would recommend. You're going to make completely different decisions. Do you see what I'm saying? That is going to affect how you run your business more than you could possibly imagine, and comma, I want to make sure that you're not continuing to add debt as you start this business.

Right, I hear you. So to summarize, you're saying pay down the accrued debt and then transfer that essentially pay off and transfer the debt over to a small mortgage that is manageable monthly.

I'm saying take the 300,000, pay off 40. So now you're left with 260. And then now this does change a little bit what size home you get. So I wouldn't necessarily -.

It's not swapping debt for debt.

It's not swapping debt.

From debt. But it is using, yes, that cash that you have from the sale of your home in Canada to help pay off the business business And then I think because of that choice, yeah, you're taking on what we had said earlier, anywhere from 50 to 100,000 may go down to 50. Maybe now you max out a $50,000 mortgage, and that's what we're going to do. And I think that's going to give you a totally different different And yeah, on the business side, I think Jade is right. We talked to so many small business owners through Entree Leadership, a department here, Evergreen solutions, and and walk with them. And one of the phrases, and again, we're pretty countercultural. I mean, even talking about taking on a small... We understand all that. But moving at the speed of cash, it changes who you are. It changes how you go home at night. It changes your sleep. It changes the the anxiety you feel towards towards small business. When there's not that risk there, you're going to move slower. It's not as fun and as exciting. And people, what we find, especially with entrepreneurs, they have so many ideas, and a lot of them are great, and hopefully they all work.

But sometimes they get stuck with a bill with something that didn't work, and they're having to pay for it for years to come. So just be thoughtful on that. So, yeah, we're half Team Wife. I'd go half that year mark- Yeah, 50,000 maybe. 50,000 on a a and you guys can pay it off quickly and get a better home that you're not going to keep up with as much. I think it's great. Well, thanks so much for calling in. This is The Ramsey Show. Hey, guys, it's Rachel Cruz. If your healthcare costs are increasing while your choices are decreasing, check out Christian Healthcare Ministries. Chm is not health insurance. It's a biblically-based health cost-sharing ministry that has helped thousands of families across the country by sharing each other's medical bills. Chm is an affordable alternative to health insurance that aligns with your values and makes it possible for you to save on healthcare without giving up your freedom. Check out more at chministries. Org/budget. That's chministries. Org/budget. Welcome back to The Ramsey Show. I am Rachel Cruz hosting this hour with Ramsey personality, Jade Warshaw. And what's fun about being here at at Ramsey Solutions headquarters is all the Ramsey personalities work here.

We're in and out of meetings. We see each other in the hall. And we're talking about a video that we saw recently, which we will show you guys here in a second. But the perfect person to talk about this was walking by Ken Coleman.

Yeah, I got the bat signal. It's very exciting. And we said, Ken, come.

In here and join us for this segment, because there was a video that was published. Was it Bloomberg?

Maybe Business Insider? Do you guys know? I mean, it was just everywhere.

It was a TikTok video of a young girl, we're going to say Gen Z, and she was struggling with the reality of what working full-time meant and how it felt- Nine to five. Nine to five, the exhaustion. So let's go ahead and play that video. Sweet girl.

I know I'm probably just being so dramatic and annoying, but this is my first job, like my first nine to five job after after college, I'm in in and I'm commuting in the the and it takes me forever to get there. There's no way I'm going to be able to afford living in the city right now.

So that's.

Off the table. If I was able to walk to to work and be fine, but I'm not. It literally takes takes I leave here. I get on the train at at and I don't get home till 6:15 earliest. Then I don't have time to do anything. I want to shower, eat my dinner, and go to sleep. I don't have time or energy to cook cook dinner either. I don't have energy to work out. That's out the window. I'm so upset. Oh, my my Nothing to do with my job at all. But just the 9:00 to 5:00 schedule in general is crazy. Being in in the 9:00 to 5:00. If it was remote, you get off at 5:00 and you're home and everything's fine. But I'm not home. It takes me long to get home. And people that drive to the office, you don't get off at 5:00. And I know it could be worse. I know I could be working longer, but I literally get off at pitch black. I don't have energy. How do you have friends? How do you have time to meet a guy? I don't know. How do you have time for dating?

I don't have time for for anything, I'm so stressed out. I just want.

To hug her.

Oh, my God. Okay, first things first. She gets home around 6:15, and all she has time for is eating and showering. I want to know how long of a shower she's taking. Does she have kids? Kids? A long shower.

I'm like, Do.

You have kids? No, she has no concept of time. I don't have time to work out to see boys at 6:15.

What are you doing? Wait, though, Ken, because there were parts of me that felt what she was saying a.

Little bit. What part?

Because I've always worked from home. I've always always business from home, which means you have the ability to tweak your schedule very easily. You don't have to ask anybody. If I I I'm going to start my day at 9:00 AM, or if Tuesday I go, I got to take my daughter to daycare, I'm going to start my day at 10:00 AM, and then I'm going to come back at 9:00 PM and make up that hour, I can do that. But when you have a nine to five job, it's like, no, you're here from nine to five. That is your block. So it is a lot less freedom in that way. And when I took this job, it was my first nine to five. I felt the shell shock. I was like, Oh, wow, this is a big block of time. I've always blocked my time in smaller chunks.

You're very sweet. What you're saying is not the same as what she's saying.

It's not the.

Same, but I got it. She's saying when she gets home at 6:15, all she has time for is a shower and maybe a quick microwave meal. She can't even make friends. She can't.

Even boil a noodle.

She's tired.

She's She's even boiled She's She's shook by.

The schedule What she's really saying is she's weak. No! No, this is a a weak-minded girl. No, Kim Coleman. No, she's struggling. No, Kim Coleman. She said, I like my job. Job. But I lived in the city and I could walk there, I'd be fine. The whole meltdown was about her time from 6:15 until bedtime. I'm telling you. She didn't account for the four hours. Thus, this is a young girl who's very kind and sweet.

But if you're used to more hours-.

This is a.

Meltdown on TikTok. Tiktok. Is a meltdown. But if you are used to more hours in your day that you can spend the way you you.

Choose- Okay, but does feel like this is her first job, though.

It's her first job. She is reacting to like, Oh, my gosh, I just hit the world.

This is adulthood.

Thank you. It's adulthood. But let me say this.

I remember waking up probably four months into work after college, coming here and thinking like, Oh, my gosh, this is my life. This is my life for the next 40 years or however long. Every point up until then, there's a transition. Elementary school school to middle school high school. There's something new. You wake up in this daunting adult brain where you think, Okay, this is my life forever. I remember getting home watching Will of Fortune at 6:30 and at seven o'clock, I was tired. No, I wasn't on TikTok crying. I knew I have bills to pay. We have to work. We're adults here. But I do think it is.

I get it. I think.

So, too. You're tired. Please tell me you're tired. You're tired.

Hundred %. Last night, my two teenage boys were out of the house with with friends. Josie, our youngest, a friend upstairs. I was in the living room watching watching football game and completely snoring in between. I get it. That's not what this video is about. But I do think- This video is, hold on a second, you guys think I'm so mean. I'm not.

No, you're being curmudgeondy.

The curmudgeond. Went since wind did having common sense make you a a Then guilty as charged because this gal is freaking out over the amount of time she has between getting home from work and going to bed. But She may be also- That's what this is about.

She is freaking out, but she also could be learning something about how she's... She could be. I'm not saying she is. She could be learning something about what she's bent towards. Because I do think some people are more bent towards, I can go to a 9:00-5:00 job. I can punch my clock. I can be there from whatever, whatever, 8:00 to 4:00, 9:00 5:00, whatever, and it doesn't bother me, and I get used to to fine. Then other people are like, I need to work for myself. I need to be able to set my schedule. Then she should do that. I need to be able to start and stop. She could be like, Oh, my my gosh, this is the world, I can't do it. She could be doing that. All right.

Let me take another angle.

Here's another.

Question, though. But even, Jade, let me say this, not against this girl.

I'm ready.

For another angle. But I'm just saying, if you had to and didn't have a choice-.

You got to work.

Yeah, you wouldn't necessarily probably be melting down.

Here's an idea. You're saying if she.

Had no other options and this is what she had to do, you would have to find that inner strength.

She doesn't have have another option.

Right, you got to You got to work. Work.

Yeah, that's Let me take another another tack, okay? All right, me just not be a curmudgeon for a a second, all Let.

Me put on the- I think most of America is probably agreeing with you. Of Of course they We're.

Playing playing devil, They almost always do. But anyway, here's the thing. Let me take the carrying dad hat for a moment. Okay, take the carrying dad. I understand, sweetheart. This is a real shock to your your sister and the things that Sister Jade and Sister Rachel Rachel said. Love you.

They're your older older Sister or or.

You would be sister with with a or or an only. I get it. Here's the point. If you're struggling like this, call your friend. Listen to a Taylor Swift song. Talk to mom and dad. Don't go on TikTok and melt down. Stop with me.

True that.

She embarrassed herself. I'm going to share every... Because let me tell you something. I got some crazy thoughts in my head. I don't want anybody to know. I sure as AG Double Hockey Stick, I'm not going on TikTok going, I'm wildly wildly insecure, I'm anxious and I'm melting down. Let me just tell you, I edited some things out that were even more personal. Wait, what? I edited some things out that were even more personal. That was the edited version.

That's right. You did. I have seen, and I know, yes, he did.

What I'm saying is this is the dad. Can we stop sharing our souls on TikTok?

Now, that kin is very good.

We all deserve a chance to melt down. But for God's sake, do it.

In private. With a friend. With somebody safe. Get with Jesus.

Yes, I do. Now we're talking about this poor girl on a huge show. I don't mean her any ill will at all because I'd actually go, Oh, I want to give you a hug. I get it. Life is hard. This does suck. Either move into the city later when you could afford it, or let's get a job where we don't have to commute because commuting is a real stress. I don't want to in any way minimize the commute. But look, you get home at 6:15, maybe you don't take a three-hour shower. I don't know.

Or maybe you work out at 5:00. Maybe eat on the train.

Maybe get up at 5:30, work out. I don't know. Lots of things.

We can do. There's a.

Way to do it. I know. There's a way to do it. I will say this. It's a cry for help. After having multiple children sitting here, all of us, we probably can adjust more. By the way. She's brand new. Am I kidding?

It makes you adjust. They don't know tired. Having multiple kids is tired to the bone. Can I get an amen? Amen.

There it is. Amen. Hallelujah. Thank you, Jesus. This is is Ramsey Ramsey Welcome back to The Ramsey Ramsey I am Ramsey Personight, Rachel Cruz hosting this hour with Ramsey Personight, Jade Warshaw. And we brought our other fellow, Ramsey Ramsey person, Ken, Kulman Big bro.

Big bro stopped in. Yes.

Just walking through the halls. Nothing to do. We waved them in because we had a reaction video last last segment. We just love Ken. We said, Do you want to keep him? So why don't you stay one more segment- So fun. -and help answer a few of these calls coming in. So let's go to Kyle in Macon, Georgia. Hey, Kyle, welcome to the show.

Hey, Rachel. Hey, JP. Hey, Kim. Thanks so much for taking the call today.

Absolutely. How can we help?

So So I guess, a little backstory. My wife's a teacher. We live in one county and she teaches in another. We're currently new to the whole whole thing, but we're all all in. Signed up for for Andy We've got every dollar premium. We've got everything set up for starting our budget. So we're going hard. But we're future thinking. And so we're considering whether to, when we get to baby step four, pay off our current house completely as we're working through the the 4, and and or just pay off enough as a down payment for a new house in the county where she teaches. Now, the reason behind it is because it's going to cost cost us $2,500 a year per child to send them across county lines to a school where she teaches at. So we're trying to figure out what's the best option to be more financially prudent for our family's future.

Okay. Yeah, it's a great question. So your wife, she's teaching in the county over, and so you're just I want to clarify, make sure I got the question correct, that you guys are trying to decide, okay, once we get to baby steps four, five, and six, should we just go ahead and move or pay off our house house full in the county that you're in?

Correct. Yeah. Yeah. So want to determine whether we want to pay off here before moving or you just pay off enough to move to where we can move to a house with all the prerequisite prerequisite 20 down 15-year fixed and all that.

Quick question. What's the benefit of moving the kids to the new school district? Just to be in the same school as as or is it a better school district?

It's a better school district. We're on the outskirts of the town. Town. Robin is the greater greater and Howston County is the county that it's in. But we're literally a mile from the border of Howston County, but we just happen to not be a part of it.

I probably would then... Once you get to baby steps four, five, and six, I'd continue to pay extra towards the the just like you normally normally because it's still a forced savings account. Account. And you get ready to move and you sell your home and you receive that equity, that would be your down payment on your next home. That's probably what I would do.

Do. Yeah, How much debt do you guys have to pay off?

So we're at about about and we make $150 a year. Year.

Okay, have you guys mapped out the timeline on when you think you'll have it paid off?

Yeah. So we're currently looking at May of 2026. I'm actually about to start a side hustle with a friend of mine doing web development and software development.

Oh, good.

For you. And in hopes to make some extra money to help get this this.

Done Okay, but that has the kids in that school for two more years. Do you guys want to move sooner than that?

Well, so they're not in school yet. So our youngest, our only child currently is about to be two, and then we have one on the way who's doing.

Doing Okay, so you guys have some time. Okay, that's great.

That's good. Yeah, we have... Daniel, our young, our only child right now, will not even start for at least three years. So by the time we even get to where he's starting school, we will be done out of consumer debt. Got you. But just trying to figure out how much time do we give ourselves?

Yeah, well, I would definitely still be putting money towards paying off your house, just like Jade said. And then when you guys get to the point that you're like, hey, we're going to move for schools, you start looking. And then when you sell your house, all that equity can roll down into a down payment. And you may have to still take out a small mortgage, especially if your house isn't paid off where you guys currently are, which it probably won't be. But yeah, that's what I would do. Just like Jade said, it's a forced savings.

You're not losing anything by doing that. It. Awesome. Do you see that?

Yeah. Yeah. So I guess was really our biggest thing was when we do decide to move, it's going to be, is it worth $5,000 a year to make the move and get into a new mortgage versus just paying the $5,000 a a year.

What's the $5,000 a year? Am I missing that?

It's to pay for the kids going out of district. I see. Here's the question. You already answered answered part of this is the school system is better where your wife wife and that's better for the kids, presumably. Yes? You check that box? Yes. All right, so the question is, if the school system that your wife teaches teaches that you want to send the kids to was in the same place your house was, would you be moving houses?

Yeah, I mean- You would? Would? Yeah. Well, if we were-.

Meaning you'd stay in the house. Which is more important to you? Staying in the house that you're in, now that it's paid off or it will be paid off, or saving the $5,000 living in a different house, but the kids are in their their Because I think that becomes the ultimate question for me. I'd pay the $5,000 a year if I really love the house. Yeah, that's a good point, Ken. Because now I get the best of both worlds. Worlds. So important to you? What's the most important? The house or the kids in the school district?

I think for us, it'd probably be the house, just because the only reason we moved into this house was just because we used USDA and didn't have any down at at the we know. We're now in.

Here's the deal. That's a line item for you now. When the kids are in school, the $5,000, that's your line item.

It'll be $2,500 at first, right?

For one kid? Yeah, that's correct. Correct.

Yeah, it.

Would be.

$2,500 for 15 years. Theni mean, all parents here, Ken. You have older kids than us. But also, Kyle, my kids, they're in public school. I will say one of the gifts of it that we have found is that all the kids are zoned for that school, for our elementary school, for the middle school and high school in surrounding areas. Areas. So my kids, friends, all live in the neighborhood next to us and all of it. It. So there's a community that's built. So I could see you guys when they enter maybe late elementary elementary to be like, Gosh, we want to be part of this community. Community. And that point, that's another value that we want-.

Want- -we want to add.

Good point. -to add. Then we do want to move for that reason. So even your reasons for maybe you're good to stay in the house you're in until they're in second grade, third grade, then then maybe, not maybe not always. Maybe you guys feel like, Oh, my gosh, we want to be part of that community. Because your kids are private school, so their friends would be scattered everywhere, kin, right?

They are, but they're in private schools close by, and you wouldn't believe how many kids they went to public school with in elementary school and middle school, and they've- Okay, our kids are scattered, though. Rachel makes a very good point. Very good point on this. Real quick question. Are the neighborhoods better? I know the school system is better. Better. It me believe that maybe the neighborhoods are better in this other area. Is that true or false?

Oh, yeah, absolutely.

You can look this up, google this. I won't eat up any time on this. But there is actual data out there, and it's why we moved into the neighborhood that Stacey and I moved into years ago, and it was a bit of a stretch for us. We sacrificed in other areas to be able to do it. But there's data out there that the nicer the neighborhood, the wealthier the people, the more successful people, and that ends up really helping your kids long-term long-term relationships, around other successful families. There's something to that. It's not a guarantee. It's not a silver bullet. Don't read too much into that. But there's something to be said, not just from what Rachel said from a community standpoint, but also the relationships and how it bodes for their future. If they become good friends with good families, that really helps long-term in their career. They've mapped this stuff out. I would think about that as well.

Absolutely. Our church is on that side of town as well. We're getting closer to everything is really the goal, and that's where we're going to be.

I would go there. But paying the house off, like Jade said, is still the right right Absolutely. It gives you more options. Sounds like you're heading in that direction at.

Some point. Yeah, maybe over over a year, it'll probably be a longer term decision for you guys, nothing you'll do in the next year or two. But yeah, I think it's a great goal to have. And again, not to keep on this point, but that's how when we were when our daughter started kindergarten, we knew where we were. We had five years to say, okay, our goal was to be in this part of the county, all of it. And we started saving. And that was our our five goal. And we made it happen, which is awesome. So again, I think having those goals for your family, Kyle, is huge. And all of you listening and watching that, too, just you think about yourself. It's not just the money piece, which is important. We want to be wise about that. But the holistic view of you and your family unit, too, I think is huge. Huge. So for the call. Kyle, thank you, Ken, for joining us. Us.

I'm going to take off.

Off. Ialways the pleasure to let you two do your thing. Let you two do your thing. Things to do, Ken. Ken. Keep in the world afloat.

We appreciate. By the way, by Rachel's new I'm glad for what I have. Money is is a a Math by Jade Warshaw. By their their books. That's a very you. That's a.

Very you. Now. Think so, kind can. We'll be back.

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Welcome back to The Ramsey Show. I am Rachel Cruz hosting this hour with Jade Warshaw. Give us a call at triple-eight, 825-5225. It's a free call anywhere in the country. I always feel like, Jade, the week of Thanksgiving obviously brings a lot of gratitude and also a lot of shopping. Shopping. That's Black Friday is a real shopping day. And I think it really can be to your advantage if you don't get carried away with it to find some deals for Christmas. I know I have some Amazon alerts that are going to be hitting for some gifts, so you can take advantage of that. And also, if you go to to com/store, our Black Friday sale is going on. So we have great gifts, meaningful gifts for your friends and family as low as $8. There's audio gift cards for as low as as $8, books like Know Yourself, Know Your Money, my book, and then Dave's book, The Total Money Makeover, Baby steps millionaires, Own Your Past, Change Your Future by Dr. John Deloney, as low as $10. Wow. And Financial Peace University is the lowest price of the year at $59.99. My wallets are are out.

Actually, have a color and Camel, Brown, Black, and and that are going on sale just for this week specifically. So So if people about my wallets and if they go on sale, they usually don't. But we're doing it for Black Friday, so make sure to check that out. So go to to com/store. And you can pick up also pre-sale of Jade's new Quick Read. Money is not a math problem. So again, lots of stuff going on here at Ramsey Solutions. We are here in the festivities of Black Friday. So take advantage of these deals. Get some great, meaningful meaningful gifts, for your friends and and family, com/store. Up next, we have Alex in Houston, Texas. Hey, Alex, welcome to the show.

Hey, good afternoon. How are you all?

We're doing great. How can we help?

All right. So two forms of debt. Unfortunately, I do have a car note, a student loan. And And here the numbers. So basically, I make 52 gross, which is is net at the moment. I've been been saving I actually have $18,000 saved up.

Up. Oh, for you.

Yes, I I I've been trying to save them as much as possible. So my question is, okay, do I... I know this is a big deal, but do I knock out the car if I have have left? Do I knock out the student loans?

What do you.

Have in the student loans? Basically, $12,000.

I would probably go ahead... Well, we teach the debt snowball where your lowest amount. So honestly, Alex, I would go ahead and just knock out the student loan debt, get rid of that. And then if you have your emergency fund of of your starter emergency fund, you're going to bring that 18 again all the way down to 1,000. So you'll throw 12 at the student loan, get it paid off. You'll have 5,000 left, which is awesome, which means means only have, I guess, close to 12, 13,000 left to knock out on the car. So I would go ahead and just get the student loan done and then start start chipping at the car next.

Okay. So I also have Kelly Blue Blue Book and I could sell and get it for... I could sell 13, get 13 out of it. So does that play into it at all? All?

If could sell the car for what?

Sorry, I I could sell the... Have Kelly Blue Booked it, and I can sell it for $13,000.

Thirteen thousand? No, I wouldn't because you're still underwater. Underwater. I would keep the car because it's not not an amount. Well, you're - If.

You didn't have this 18K saved, it would look a lot different. But with that money, you're going to be out of this in no time. Oh, cool. Very quickly.

All right. So then knock out student loans and then throw the 5,000 at the car payment and then just have that 1,000 saved up, right?

That's what you all said? Exactly. That's exactly what we would do. That's great, Alex. What I love about the idea of just the snowball and working this plan is that even though you saved 18,000, which is incredible, I don't know if you had a goal you were saving for, but the but a lot of people are just like, I just know I need to put savings away. And it's this nebulous idea. And so there's something about having that more focused goal of looking at the car and saying, What did we say? You have 13,000 left on left on to that create 13,000. That's my next goal. And there's an actual number to it. There's something really motivating about that, Alex. And I would encourage you, if you can bring in an extra thousand dollars a month in Side Hustles, $800, work a couple of nights, maybe some weekends, and just pick up for a short period of time, you could throw a lot at that $13,000 and get it knocked out really quickly. So again, this idea of putting money towards that by upping some income, cutting expenses, I think at your rate, Alex, you're going to do awesome.

I'd have that student loan paid off by dinner tonight, Jade.

Oh, come on now. Get it out.

Love it. All right, up next we have Heidi in Houston, Texas. Hey, Heidi, welcome to the show.

Hi, thanks for taking my call.

Absolutely. How can we help?

Yeah. So my husband and I recently started listening to your podcast, and we are looking at our first house and have some questions. So we're currently debt free, and we've been saving for a down payment. And we've been house hunting for a few years and finally found a house that we both really love. And we were actually thinking about putting an offer on it today. We've been looking at our.

Budget a lot and talking about.

It a lot and looking at the money that we would need upfront. And we had.

A.

Question about the recommendation that you have for the house payment to be under 25 % of your take-home pay. Specifically, we're wondering if you include taxes and insurance within that 25 % or just the principal and interest and then tagging off of that of that you include the 15 % of your household income that you're supposed to invest in retirement before you take the 25 % of your take-home pay? Or would that be? That be?

Great questions, Heidi. Great questions. So no, you would include that 15 %. You just look at your entire take-home pay that hits your account. And that would include investing, right? I mean, it would be that entire number. So you would not exclude 15 exclude and then look at that amount as your 25 %. No, you would look at your entire take home pay. So that is, I guess, the good news. And then the bad news is, yes, we do include taxes and insurance in that 25 %.

Yeah. And not to be... I want to add something else to it. Have you guys picked a house yet? Do you know this is what we're thinking of? Thinking of?

We are thinking about putting an offer on a specific house today, actually, today, actually, pretty confident that we'd be able to able We were going to make the offer in a couple of hours here.

Yeah, that's exciting. But yeah.

We do have a specific house in mind with a specific price and everything.

Good. I always tell people the first time Sam and I bought a house, I was shook by really the cost because I was like, We've got our down payment. That's it. That's all we need. Then, Heidi, I was like, Oh, wait a minute. There's the down payment. Then when we had to put the offer in, they were like, What's your earnest money that you're going to put down? I was like, was money? What's that? Then they were like, Then there's closing costs. In some of those, you have to pay out pay pocket. I'm like, Closing like, Then there was the inspection and the appraisal. There were all these things that thesethings that I I just didn't know. Luckily, we had extra money set money set I always like to tell people, Hey, be prepared. I always say when you go to buy a house, come in with a stacked deck. I say, Down payment for D, earnest money for E, closing cost closing cost for then the K, I K, consider other things such as inspection, all those things, appraisals. So just know going know.

Go ahead. I actually have created a very large spreadsheet large spreadsheet included.

All of those things. Good that you, Rhombie. That's awesome.

I've included all of those of down payment, closing payment, prepaid cost, prepaid Let's go. The rent to get out of.

Our.

Apartment in the next few next moving expenses. My husband actually has a 401K that we're trying to convert to convert from a previous job. And we'd like to do that this year since we're in a lower income tax bracket this year. So I've included that.

Oh, my gosh, Heidi.

You're doing great. I tried to include everything I can think can Amazing.

Well done, Heidi. Well done. Well done. I incredible.

That's a planner.

Right there. Yes, and the diligence of it. I'm so I'm so you guys. I really am. I think you have your focus. You said you're a new listener, but you are doing all the right things and being so wise with a purchase like a house because it's the largest purchase. And we want it to be a blessing and not a curse. So we're excited for you, Heidi. Love it. I hope all the numbers work out and you guys get the house that you want. Thanks, Jade, for being a great co-host. Thanks to everyone in the booth. And thank you, America, for listening. This is The Ramsey Show. Live from the headquarters of Ramsey of Ramsey The Ramsey The where we help people build wealth, do work that they love and create amazing relationships. I am Ramsey am Rachel Cruz hosting this hour with good friends good Ramsey personality, Jade Warsaw. And we are here to answer your questions. It's a free call anywhere in the country at country So first up, we got Cheyenne in Phoenix, Arizona. Hi, Cheyenne. Welcome to the show.

Hi. Oh, my gosh. Thank you so much for taking my taking my call. A little bit right now.

Right now. So glad you're here. How can we help?

I just feel super overwhelmed with money. I feel behind in life. I'm a registered nurse. I've been one for about a year and a half, and I currently make around $75,000 a year. That's not my take home. I take home about 4K a month. And I have about 90K in debt, and I still want to go back to school to be able to increase my income. So I'm just looking for advice and some reassurance on letting go of my savings that I have.

Okay. How much savings do you have? Right now.

Right everything, all my investments and my 403(d) and just savings in general, I have about.

Have Okay. How much is a non-retirement?

I have $40,000 and a high yield and about 2,000 about just individual investments.

Okay, investments. Just investments. Okay. Well, Cheyenne, you're doing awesome. I mean, you got $42,000 saved. That's- That's excellent. That's impressive. Very impressive.

I also wanted to.

Know.

If you're currently investing still.

Investing still. My 403B through work, I have 12 % going to going to mind us account.

Okay. All right. So I know you're probably not going to like what we have to say because I know there's a lot of that security feeling, even though you feel stressed and anxious and overwhelmed. I think part of that anxiety is just knowing you have this $90,000 of debt looming. And the way I feel like maybe you've combatted that is just to put some savings to the side to make you feel okay, but yet it's not. The problem isn't problem isn't because the problem isn't lack of savings. The problem is this debt that's hanging over your head that's preventing you from moving forward and going to school. It's preventing all of this stuff. And so we always say Cheyenne around here that if you're not you're with your current financial picture, that means you can't keep doing what you've been doing. You have to do something different, and it's going to be uncomfortable. Change is not fun. And so looking at money and acting differently with your with is going to get you a different result. And I would bet, because we have social proof of literally millions of people that have done this, that there is a different way.

And not that what you've done is wrong. I mean, you have saved and you've done a really great job. But I think there's a couple of things that you could change here, and it's going to feel uncomfortable. But I think it's going to make a big difference in this in this picture, you ready? Yeah. Jay, do you want to drop the ball?

Yeah, I feel like I have to drop the hammer. First things first. Things would pause investing because you were like, I make 75,000. And you said it yourself, I make 75,000, but I only take home 4k, which means you feel that 12 % leaving each month. And you feel it leaving because you know there's this debt this debt So I would temporarily pause the 12 %, get that money coming back into your hands. And then I would take that along with my 40,000 in savings. I keep 1,000 aside because you just need a need a fund, just a little cushion there. So I take 39,000 of it, along with the 2k that I have sitting there. So now you've got 41,000. And I'd put it on this $90,000 of $90,000 and debt knock that back. Now you're looking at a little under 50. And I would then, because you've got this 12 % back working for you, I would just keep going strong and just pound this debt until it's gone. Now, my next question to you to what time do you have to be working overtime?

Right now, I don't have a whole lot of time. I work the three, 12-hour shifts a week. I work an extra day at a different job I just added on. And I'm still finishing my masters and gen in January, but I have clinical rotations on a different day and online school.

So you've hit your max at max Yeah. And look, I get it. There are times where you get to this equation and you're like, All right, All right, as much time and effort as I can. And when it gets to that, you've just got to ride that horse across the finish line and know, and this is the margin I have. And at that point, I'm just locked into my timeline. And I know I've done the math. At this point on this date, I will be debt free. And so if you don't have every dollar, Austin will pick up and make sure you get every dollar because I want to make sure you plug these numbers in, because with every dollar, you can literally go in and say, and here's the numbers I'm working with. If I do I certain this by this specific date, I will be debt free. And then by this specific date, I will be able to build back up my savings. And then by this specific... Do you see what.

I'm saying? Yeah, Cheyenne, when are you done with... You said you're still doing your masters. When are you done with school?

Yeah, I'm done on mid-January. So after that, I'll be able to pick up two extra shifts, which will.

Help a lot. Perfect. And that extra job that you have, did you did I'm sure you did a price comparison versus just working overtime with your full-time job versus this new job, did you get paid more? Yeah, I get paid more. Perfect. Awesome. Well done. That's so great. Thank you. I have.

A follow-up question.

Yeah, sure.

For the pausing of investments, do I still keep the match at four %?

I would not. I would, because here's the thing. You're going to be out of debt very quickly. If you do the prescription that we just wrote you, you're going to be out of debt. Let's see, that leaves you with 48 left. 48 left. Live on half of your income? Yeah. Okay, then you're out of debt in a year, a year and a couple of months maximum. And then when you're out of debt, you're going to build back up your savings, whatever you think is three to three months. Yeah, within that area, you're going to build that back up, and then you're going to be able to invest 15 %.

And then at that point, Cheyenne, is when I would start saving up some other cash if you want to go back to school. And here's the wild thing. I feel like sometimes, and it's not always the case, the case, we do find that people are like, Hey, I want to go back to school, this, this, and this. And a lot of people just make the decision today, regardless of the money, and they go into go and they do it versus having a little a little patient, bit of patience. And you may look may Cheyenne, I'm not saying this is the case. You could look up in a year from now, start saving and actually like, You know what? I have no debt. I'm funding my retirement. I have savings in the bank. You're going to be in a completely different place emotionally with money at that point. And you may say, I think I'm good. I think I'm going to work towards paying off my house or down payment. I'm going to keep moving on with my financial goals because career wise, I feel settled and settled Now you may not. You may say, may I'm going to spend another year saving to pay my way through school, which is great, too.

But you never know.

But that's the beauty of saving of that delayed gratification, is your choices change, your options change, and your desires change. And so you actually let time do its work versus making an instant decision, going into going and you're stuck in this path. So that's one reason we love the idea of saving up and paying for things because it puts some breathing room into the equation. Thanks for calling Cheyenne. This is The Ramsey Show.

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Youtube, Jade, always make me laugh with all the dynamics of the Ramsey personalities, because sometimes I don't think Rachel and Ken really get along. Deloney seems to not like Jade. I love it. Or there's all these all these predict our relationship. But I can tell you, in good faith, everyone, we genuinely enjoy each other. That is right. All of us. We're going to have a Christmas party with just us and our spouses coming up at Jade's house. We are having fun. That's right. So we love the people we work with. And you know who we who we Sweet George Camel. Yes. We love George Camel. And if you know him, you love him. He actually co-host Smart Money Happy Hour with George. And you guys, he has a brand new book coming out in January called Breaking Free From Broke. So you can pre-order today for only $20. You get a hundred dollars of free items. So this is instant access to George's newest talk. Show me the money. You get exclusive access to an online preview, private events, and Q and A with George, the e-book, the audiobook. There is so much there. And it even includes three months of every dollar premium.

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Okay, that's worth even just pre-ordering just to get the every dollar premium. That's amazing. So George does such a great job. I mean, if you listen to him here on Smart on Happy Hours or The Ramsey show, you know that he brings he brings brings He and the way he looks at looks at such a great thing because he exposes so exposes There he is.

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His parents, we met them earlier in the break, or we've known them. We got to see them down from Boston. So all that to say, go to go com/store and preorder George Camel's new book, Breaking Free from We love you, George. Happy Thanksgiving. Happy Thanksgiving. All right, let's go to the phones. Let's go to Cole in Memphis, Tennessee. Hey, Cole, welcome to the show.

Hey, thanks for taking my call.

Absolutely. How can we help?

Yeah. So I'm 22 years old. I'm active duty in the military right now. So I make about make a year. And I'm in a position where I don't have a lot of expenses. So after all my bills and food, I just have just every 2,000 every month to I need. But I do have $23,000 in student loans. Right now, I have about 4,000 saved up because I've been I've 1,700 a month towards them. But now I'm in a situation where I have an unreliable car. The AC doesn't work in Mississippi, and the engine is not working well. Working had to repair it. And I want to get one by one by it starts to get hot, get get a new car because I'm not I'm not driving.

No AC.

But I want something reliable. And obviously, I don't have enough saved up to buy a new car cash, but I don't want to go with another with So I'm just not really sure how to allocate that 2,000 to saving for a car and student loans, and then if I should buy a new or used car.

Okay. Yeah. If you were you were to Kelly your car right now, do you have any idea what you could get for it?

Yeah, I think it was 1,200.

1,200. Okay, perfect. Okay, perfect. Yeah. We always talk about, Cole, your four walls that you want to make sure are covered, which is food, shelter, utilities, and transportation. And that transportation is a reliable car. Now, the AC doesn't work. I understand that. And in Tennessee, heat come he come don't want that. I totally understand that. So what I would do is I would put some money aside. Money aside. Able to save $2,000 a month, you said, after expenses and everything, which is incredible. And incredible. I would shoot to try to have maybe, I don't know, Jade, six grand saved? At least, yeah. Six to eight grand saved. And so that's going to take you three, four months to be able to save that. And so that gets you into March, April, which with which is still- Yeah, because.

Yeah, because I already got the got saved.

Yes. Oh, yeah, that's right. That's right. So I'm trying to do to do at once here, which I know we don't always recommend, but knowing that you're going to have to replace your car, it's a needed expense. So you want to be able to save for that. But I also want you to start chipping away at the student loan at the same time.

Or what you could do, you could go that route, or you could say, Okay, I've got $4,000 saved next month when I get paid in paid I'll have another $2,000 to put with that. And then plus the money from selling the car, so that's $6,700. So what if you said, you I'm going to keep a thousand out as my starter emergency fund, and then I'm going to just take just I'm going to get a new a new knowing that in that that starts my baby step two debt snowball payment. And as soon as I'm done paying off paying off I'd like to put a little bit more to upgrade, you can do that.

Because you said... How to write this down?

So you say get a new car, pay cash for a used one, or one.

Or get a new one? No, no, no. In December, I would take in December when you get your next your because you said, you I have 2,000 have every check and margin. So in December, when you get paid, I take your 2,000 of 2,000 of add it to your 4,000 that you have saved. Then I'd sell the car that you have. I'd get about get about bucks for it, like you said. And so what does that leave you? With $4,000 or $7,000. And then I'd keep aside 1,000 just as a safety net, and I'd buy myself a $6,000 car. Now, I heard you earlier when you said, I don't want to buy another junker. And I get that. This is very temporary. I just want you in a situation where you're driving something-.

The engine is not crazy. There's air. I mean, yeah.

The basics. And then you're going to take, and starting in January, you're like, Okay, now starts my student loan payment deal. And I'm going to put 2,000 and I'm going to be done with it by the end of the year. So this time next December, you're going to be like, All right, I'm done. I can start upgrading my car if I'd like to. Or if this car is still doing well for me, I'll start building up my emergency fund. So you've got options.

Yeah, and, Cole, with this math right now, you could have a new use, new to you car in January. Your student loan paid off by this time next year. And I think that when you start gaining that traction, you may find yourself being like, Oh, my gosh, okay, a few nights a week. I'm going to work extra and try to get even that paid off by October of this year, even shaving a month or two off of your timeline. And your car, let that be the be the motivator. I want to get rid of the student loan debt so I can save some more cash. And the great thing about a $6,000 a $6,000 car really doesn't go that much further down of value. It's gone. It's gone. Pretty much at the bottom of it, which is great. And you can keep stepping up in car that way. So that is for sure what we recommend. Do not go get a brand new car with a car loan. This is the slower process and way, Cole, but this is going to give you a lot more freedom, a lot less stress when you do things with cash.

So thanks so much for your service, Cole. We really appreciate you. That's good. That's good. Jade, you mentioned earlier, and I think even Cole's situation, it is amazing to me when you can be intentional with every single dollar. And I love that Cole, because this doesn't always happen with people where he's like, I just I to have $2,000 have $2,000 doesn't have a lot of expenses, which is such a gift, and you want to take advantage of that. But having purpose for your money, that's one reason we love every dollar, our budgeting our budgeting being so specific, you guys, the budgeting, that budgeting, I love it, Jade, but I know you love it. Love it. This is something that you and I, we I, over because there is a foundational principle, you guys, with your money is that you have to be intentional. So whether you're living paycheck to paycheck or whether you're in you're situation, you got two grand every month that you just happen to have, that stuff just either stay in the cycle of paycheck to paycheck or that 2,000, if you're not intentional with it, it starts to dwindle away. And so being so specific with every single dollar that you have is so key to winning.

And all of you that are new, listening to the show or watching the show, this is a crucial, crucial part of your financial picture as budgeting. So if you have not downloaded every dollar, download every dollar, upgrade even to the premium version because it connects to your bank. There's paycheck planning. There's so many other features. But getting this rhythm, don't you agree? And even going into the holidays with shopping and everything, you guys, this is the way to get control of your money.

Is to budget. I definitely think. And I tell people all the time, we have the free version of every dollar, which if you love you love you love really having your hands in every piece of it, then free version is great for you. But the premium, to me, has these two key factors that so many people miss when it comes to budgeting. They're like, Jade, I'm doing a budget. Why is it still not working? I'm like, You're probably not planning your paychecks, so you know exactly when to spend the money that you've budgeted for, and the premium version does that. And there's that automatic transaction tracking that is critical. You must track your transactions each day. That's right. Otherwise, you're not going to win with your budget. And so Every dollar premium provides that, and that is the key. That's what you need.

Yeah. So download the app or go to everydollar. Com and get started, you guys. We want you guys to win and be intentional. So whether you're coal with $2,000 a month or you're living paycheck to paycheck, a budget is something that is going to help you. It is a tool and a habit that's going to help.

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We're standing over on the Debt Free stage. This is one of our favorite types of calls, Jay, that we get to do is talk to people on the Debt Free screen stage. We have Edwin and Carla here with us. Hey, you guys. Hi. Guys. Hi. Hello, hello. Okay, you're here standing on that stage for one reason. You're Debt Free. Yes. Debt-free. Yes. Where are you guys from?

We're from Los Angeles.

Okay, so L. A. All right, so how much debt have you guys paid off? $139,000. Wow. Oh, my Oh, my how much time? Thirty-six months. Thirty-six months. Okay. Making what income?

We started off.

At $131,270, two jobs and some side gigs. Okay. We ended at $127,486. Okay. Our income just recently boosted. It did. So what are you guys making now?

We're making 193 together, no.

Side gigs. And soon we're looking at a 34,000 raise between the two of us. Oh, my gosh. So well over 200,000 you guys. What do you guys do?

We're school social school social we do.

Mental health in the school settings.

I'm new to it. I just recently got my grad school degree. School during those 36 months, we cash flowed my university.

Wow. Oh, my gosh, you guys. Incredible. What incredible work that you do, and incredible that you guys paid off this amount of amount of $139,000. So what debt was it?

We were pretty normal.

Personal loans.

Title.

Loans, payday.

Loans, car loans, leases, leases.

You all did it all. Everything. Did it all. Okay, so what happened- Student loans, sorry.

Yes. Wow, yes.

So what happened 36 months ago that made you say, What are we doing?

Well... Well, yeah, we had a had so much debt. And at that time, we had to move back in with my parents. And we were married and moving back in with my parents. And we were like, Okay, well, something's got to give.

Enough is enough.

Actually, it was during college, I met a classmate of mine, her husband is a pastor, and they actually hosted an FPU. So shout out to Rudy Rodriguez of New City Church, Pastor Rudy and his wife Christine. So we got started with FPU. We did the, what do you call it? The plastic surgery. Yes, plastic surgery.

Plastic surgery.

Those credit cards. Oh, look at that. And then we just opened up about finances because I think that's something that's really important in a in a A lot of people don't have shared finances. We've been learning little by little. That's right. We just opened up and then we started budgeting and we just followed Baby Step 1, got that $1,000, and then we went crazy with Baby Step 2. Inquiring minds want to know, to know, what was it like when you say we opened we opened was it like when you opened up and started combining your finances? Be real. It was, actually, it.

Wasn't too bad.

It was.

About.

Me.

Getting over the guilt and shame. And shame. We first started dating, I kept it from him because I brought the bulk of the debt into the marriage.

And I just...

There was a lot.

Of shame and guilt.

I made a lot of poor of poor.

He's amazing.

And he.

Was very was very I eventually opened up and he's.

Like.

Don't worry, Don't I.

Got you. We're going to.

Do this together.

So.

Together.

Really helped us to catapult into paying this off.

We.

Really We.

Incomes once we.

Got married, pre-marriage counseling and our marriage retreat helped, and the and just really adhering to.

Those really helped us. Wow. Plus, I saw.

The.

Potential in my wife. She was great since before.

We.

Even started going out. She was just great. I was like, You know what? That's my That's my going to do this.

That's what I'mI'm just trying to figure them out. Wow. So great, because you guys, I mean, $139,000 is no joke. We're not talking about $30,000 of debt. $139,000. So what all did you do? Because you said you guys work with mental health in the school district, but you must have picked up some side hustles and all of it. So tell us your workload, because I know it was a lot.

Oh, yeah.

Uber Eats, Postmeets, tutoring, front desk support, night shifts, you name it.

I even did desktop support on the on the before I started mental health, because I just recently started this year. I used to do a desktop.

Support.

For an aerospace company, but then on the side, I would side, would helping my friend set up his DJ his DJ and everything. Yes.

So how many hours would you say at the most? Because we talk to people and we say, Hey, do some side hustles and all this. And some people are like, Oh, gosh. You guys are the prime example of going big or going home. At the highest point, how many hours were you working? Probably right.

Under 70. Probably between 65 and 70. And 70. Each. See, this right here, this is what it takes to get to your shirt.

Straight out of out of Again, we're not saying to work 70 hours a week for your life. That's not sustainable. But for a season, and it probably wasn't even that for about six months, but at the peak, that was the most. That was the most. Oh, my gosh, you guys.

You're incredible. I got to know, because my husband and I, we did the side hustle thing, and there's always one that you hate, right? There's the one that you're like, All right, I got to go do it. What was the one that you were like, When I let this one go, I am free.

I got this one. This was the front desk support, and it was a.

Friday, Saturday, Sunday.

I left I nine to.

Five, my salary job, and I would.

Be miserable.

I.

Hated it.

But I knew we.

Had to do it in order to to.

Move forward. I remember I used to take her and pick her up.

Every.

Night.

Oh, my gosh, just I was so sleepy. Yes, amazing you guys. But you're.

Here, you hit the finish line.

Yes, I know. How does it feel? How does it feel to be completely be completely Amazing.

I mean, we can pay for a.

Nashville.

Trip and don't have to.

Worry about it. Yes, yes.

It's just freeing. It's so peaceful.

And such an accomplishment.

It is.

Yeah, it feels like you're being choked constantly, but now you can.

Breathe again. Yes. So good, you guys. So what would you say the key to getting out of debt is?

Definitely a lot.

Of love and communication and empathy and understanding. Yeah. So understanding. You guys. I don't know if we have anything.

I agree.

Communication is key. Because working together as a married couple, like what you were pointing out earlier, it is so crucial. So important. So crucial. Well, you guys, you're incredible. I'm proud of you. Absolutely amazing. You are the prime example of what it looks like to sacrifice to come up against numbers like this, $139,000 and paying it off in 36 months. Absolutely incredible. Edwin and Carla, well done. We're going to give you the live and give and to be able to take some of that home with you. You can give some away. And we are so excited to celebrate with you. So we have Edwin and Carla from Los Angeles who paid off $139,000 in 36 months, making $131,000 to $127,000 during this journey. Count it down. Let's hear your debt-free scream.

One, two, three.

We're debt free.

All right.

Amazing.

That's.

Funny. They took their time with it.

You can see the relief. See the relief. How incredible. So good. I mean, that's it, Jade. And that's where I'm just like, you can't... I know people have different stories, different life circumstances, but at the end of the day, if you choose to do it, and for 36 months, you and Sam are proof of that. Edwin and Carla are proof of that. Edwin and Carla. Are absolutely incredible. Absolutely incredible. We are cheering them on. And we're cheering all of you on. If you're listening or watching this and you think, I don't know if I can do that, you can look at them as examples to examples to possible. We see it every day. It is possible. This is The Ramsey Show. Our scripture of the day comes from Psalm 86:11. Teach me your way, Lord, that I may rely on your faithfulness. Give me undivided heart that I may fear your name. Serena Williams said, I am lucky that whatever fear I have inside of me, my desire to win is always stronger.

That's winning.

That's so good. Oh, my gosh. Because that fear is real. I mean, in all of it, there's the fear of change, of doing something new, whatever is in front of you thinking, Oh, my gosh, is this possible? But that desire to win, it's stronger. Love it. Love it, love it. All right, next up we have Joanne in New Jersey. Hi, Joanne. Welcome to the show.

Hi, how are you?

Doing well. How can we help?

Well, my family and I are facing a serious issue. My issue. My owns a small business with trucks, and we're actually facing repossession. Right now, our income is not bringing not bringing to cover the cost of cost past a balance. Right now, I'm in school. Right now, we were depending on the income for the business as well as my as my I just wanted to know what options do we do.

You said trucks. Is there multiple trucks? What business is it?

No, it's actually one truck. It's a commercial truck.

Okay, so it's like a like Semi-truck. Semi-truck, okay. Okay. You said there's a past due balance. What is the balance?

The past due balance is about $16,000. I'm just.

Trying to get to the root of the problem. The problem. What What has caused it to get to that point? Is it he's just not getting the work in order to bring in the money, or is it he's bringing in the money, but we've got all these bills and this just keeps getting pushed to the back of the line? Can you lay out what's been going on?

Sure. Well, he did suffer an injury in the beginning of the year, which caused him... He was unable to drive. Even when we did hire, whatever happened, we lost a lost We lost employees where they were not able to, I guess, keep up. The truck has been sitting around for a little bit, too. That's another issue of why issue why we behind. We actually had a job where we did not get paid for that job, which set us back us.

Okay, so how long has it been where it's where it's there's not money coming in. He's not able to do the do the in school. How long has that been?

I believe six months, and that's just an estimate.

Okay, so right now you guys are in crisis mode crisis mode feels like you guys were like, were going to give here, something's going to give here, and it never did. And so now you guys have got to do something serious here. So the truck is $16,000 is $16,000 and dollars have they said? When is the deadline of, hey, we're coming to get this thing?

I believe at the end of the month, they'll probably come pick the truck.

How much How much guys owe on it, Joanne?

The full balance, I believe it's about 78,000. Okay.

And coming up with this amount of money, is there... I mean, whatever we can do for it not to be repossessed, because then you just start from... You're starting from scratch. Yeah, from scratch. Have you looked into selling it?

We've tried selling it, but again, but options are very limited. Either we don't have any interest or we haven't had any luck with selling it, so no.

What has been your attempt to sell it?

My husband actually may have more have than I do. I know I picked up some information from him, but I think he's ex-family, friends. I think he's actually gone to several and offered to sell, but no buyers.

What is the amount that you guys are trying to sell it for?

I believe the same amount that is the full balance, which is about is or whatever it's worth.

Okay. Here's what I would do. Would do. Have no money sitting around, nothing you can sell, nothing you can... Do you have two other vehicles?

Just our personal vehicles, one, which I get to work and to school or my regular my and for him, the same.

Okay. Same. Okay. Are both of those worth? I'm just trying to get your numbers.

I would say maybe 10,000 a piece. It's only two vehicles.

Here's what I was getting at. I was getting at a situation where maybe you get rid of one of the cars and use that to keep the truck in truck in operation, over the next few months, you save up cash and buy another little Beater that one of you drives. That's an option that you could look into. How old are these cars that you have?

One is a 2016 and the other one is a 2003.

Okay, so maybe it's keeping the 2016 and trying to do something like that. Or maybe you have to- You have to ask yourself how desperate you want to get to save this truck, because part of me is like, is haven't been making any money on it for 6-8 months. And part of me wonders if it's the right business for you. For you. I hate repos because it's going to jack your credit. It's almost like a bankruptcy. It's going to just throw an atom bomb on bomb on But at the same time, I do think that you get to this point where it's a necessary ending and you have to be like, Look, this has not been profitable. This has not been fruitful for us for many reasons that you listed earlier. And there's part of.

Me- I was going to say my aggression to sell it, I feel like that's going to be the best. And it's not just friends and family, Joanne. Family, Joanne. I is calling companies. This is This is country that you'll drive it to a different state. Again, it is putting the putting and the sweat, and the tears into getting this thing sold. Thing sold. I really the only big thing because even with these cars, Jade-.

But if they can drop the price, if they can sell one of one cars and drop the price by 10,000, sell it at a at a you guys are taking the taking I would be trying to make that dog hunt until the day they fry it from my fingers, right? Yes, exactly. So to me, that's the game the game what can I sell to put with this so that I can sell this, get this truck sold at a premium?

At $68,000, take the 10,000 of your primary car just to cover all of that. And then you start working to pay off that 16,000 that's owed, that's owed, get a new car, and you guys just start over versus this asset just being completely taken away. And like what Jade said, it takes such a ding on your credit. So, yeah, Joanne, if I were you guys, and even if they can hold off the off the to the end of the year, if they can give you more time, that is going to be the thing. And again, the urgency that may have been have I don't want to put words in your mouth, but to Jade's point of it being six to eight months, that lack of urgency, of caught up to you. It's caught up to you guys. And so there needs to be these extreme things that happen. And again, that's finding a buyer. That would be my number one goal. And even for you guys, Joanne, there's even a point that, man, you may want to think about for yourself pausing yourself pausing school- I where you are and getting a job and just getting you guys in a place where money is not just sucking the wind out of you.

We just had a debt-free scream on the stage earlier. And he said it felt like it's a like a around me. And, Joanna, I feel like that that's where you guys are. It just feels like the world just keeps is against you. And man, and it's like decision after decision, nothing is going is going you need things to start going right. But that means there's going to have to be change in your life for that to happen. And it may be uncomfortable to do things like pausing school to get a job, but getting the money, the money, the in, finding a seller for this, I think there's a couple of big changes that really are possible. I don't think that this is an impossible scenario, but it's going to take a lot of work and some creativity, too, to be able.

To navigate. To navigate. Can't get past the discomfort. It's uncomfortable that they're in this situation, but I'd rather make myself uncomfortable in other ways to get out of out of are going to be more.

Fruitful, for sure. Yeah, we're glad we're glad to be able to you to you today. We're so sorry to have you on Joanne. Thank you so much. Well, thank you, Jade, for another great hour. Thanks to everyone in the booth to make this show happen. Thank you, America. And remember to take control of your money and create a life you love. Hey, folks, Dave Ramsey here.

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