The Ramsey Show XX
[0] from the headquarters of Ramsey Solutions.
[1] It's the Ramsey Show.
[2] We help people.
[3] Build wealth, do work that they love, and create actual amazing relationships.
[4] George Camel, number one, bestselling author of the book Breaking Free from Broke, Ramsey personality and, and, oh, various other things.
[5] He is co -host of the Smart Money Happy Hour, many other things around here.
[6] He's my co -host today.
[7] Open phones at, Triple -8 -8 -25 -5 -2 -2 -25.
[8] Katie is going to start us off in Akron, Ohio, this hour.
[9] Hi, Katie.
[10] How are you?
[11] Hi, I'm good.
[12] How are you?
[13] Better than I deserve.
[14] What's up?
[15] Good.
[16] So my husband is a physician, so he's got a really good income, but he also has almost $500 ,000 in student loan debt.
[17] We've been married three years, so I kind of married into his debt.
[18] And as such, we're not sure if now is...
[19] even an acceptable time to be considering buying a couple of new to us used cars.
[20] Right now, he works out of state and will for the foreseeable future.
[21] So he's gone 50 % of the time, and I'm here with all the kids.
[22] Last week, two of our vehicles were broken down at the same time, so I had no transportation.
[23] So I was just, we're looking to spend maybe a total of 40 ,000 on a van and a sedan, and just don't know if we're still supposed to be driving clunk.
[24] because of that massive student loan debt.
[25] Are we attacking the massive student loan debt?
[26] Probably not as fiercely as you would like, which has, and not as seriously as I would like either, because this is a second marriage for both of us.
[27] We've both had to kind of adjust our financial views a little bit, a little give and take.
[28] And so I'm more gung -ho than he is, but at the same time, we are still paying them off.
[29] We've paid off 100 ,000 of them in the past two years.
[30] Yeah.
[31] What's he make?
[32] He makes 400 ,000 gross.
[33] So we're bringing home a little over 18 ,000 a month.
[34] You should be bringing home more than that.
[35] Your taxes aren't that?
[36] It's about 19 ,000.
[37] Yeah, that's...
[38] After taxes and insurance.
[39] That's almost 50%.
[40] That's almost, you don't have a 50 % tax of some kind of problems going on here.
[41] Is he investing through his retirement plan?
[42] Yes, but that's actually already been maxed out for the year.
[43] So, yeah, I know.
[44] That's why you're taking home less as well.
[45] That's part of the equation here.
[46] So if we pause investing, you could get back $20 ,000 in your paycheck.
[47] I mean, the question is not really cars, because based on the way you guys are currently living, you're trying to wander out of debt while continuing to do investing and while you have but do this.
[48] You make $400 ,000, you only paid off $100 ,000 in two years.
[49] I mean, and it's just awful.
[50] So, you know, there's no intensity at all inside.
[51] We do also have a lot of expenses that others may not have.
[52] With him working out of state, he has to maintain an apartment out of state.
[53] We have three, well, I have three step kids that live in a different state that he has to go out there to visit on a monthly basis and so hotel rooms and travel for that and then yeah but truthfully Katie you told you told us you guys are not intense you guys are not working our system okay I'm not mad at you but so I don't know why whether you buy a car matters I mean if you want to go buy a car by a car if you're going to keep working it this way but you're going to struggle as long as you continue to do this and so Um, you know, it's, um, you guys are going to have to decide if you're going to lean into this debt thing and get rid of the debt.
[54] If you're going to lean into it, then stop the 401k and buy one $10 ,000 car and get rid of these two pieces of crap that keep breaking down.
[55] Um, but, you know, as long as y 'all keep acting like people that make $400 ,000, you're going to keep spending what you're spending and you're going to justify it and rationalize it and you're going to stay in debt.
[56] you're not going to get out so you know i it doesn't matter you know the 10 000 car doesn't matter it's but what it does do the question what the question does do in your house not not with us it's not doesn't affect us but between the two of you it causes you to to say okay are we going to do this or not are we going to keep limping through this because at this current rate you're going to be in debt for 10 years and that's just you know that's not a plan You know, it's not a good plan.
[57] But, and if you're going to do that, then, yeah, sure, buy a car.
[58] I mean, it's not, buy, all the cars you want to buy.
[59] I don't care.
[60] I mean, it's not, it, because it doesn't, what you're doing is you're half but doing everything.
[61] And that's just not going to, the everything we teach anyway.
[62] So, yeah, you guys need to have a discussion about this.
[63] Okay.
[64] We need to sit down and make the money we have behave better.
[65] And we need to behave better.
[66] And, um, we need to get in very, very intense.
[67] because you are a broke doctor's wife.
[68] You're married to a doctor who is broke, broke, poor people, making 400 grand.
[69] That's what you are.
[70] So you guys got to decide if that's how you want to live or not.
[71] I don't want to live like that.
[72] Yeah, part of this is getting a line going, all right, how much can and should we be throwing at this debt?
[73] We want to be done in three years.
[74] Okay, that's 170 grand a year.
[75] We've got to be throwing at this.
[76] What does that take per month?
[77] once you make it mathematical and what must be true yeah we got to cut what has to be true of our lifestyle what has to be true of the travel apartment what has to be true about this and true about that and you know and what's the way we can for a short period of time what can we sacrifice and that's what you do and regardless of you make 40 grand or you make 400 grand maybe you can repair the cars for 5 grand instead of spending 40 and that buys you a few years who knows yeah but i think I think what this highlights is not a car issue.
[78] What it highlights is the issue that you guys are, the plan you're working, you know, is not not working, not well, and you're not on the same page.
[79] And you guys probably need to talk about what the flip we're going to do going forward.
[80] I mean, then that will answer your car question.
[81] And do you even have 40 grand in cash to pay for this?
[82] Yeah, probably not.
[83] Open phones at AAA.
[84] 825, 5225.
[85] Jump in.
[86] We'll talk about your life and your money.
[87] So, George, one of the things that happens, and it happened with me, I didn't have a choice because I went broke, but you can choose to take away all your options.
[88] You can choose to take away all your rationalizations.
[89] You can choose to do this.
[90] And you have to kind of run a mental scenario.
[91] I always tell people like, okay, You have no money.
[92] What if you had to have $10 ,000 by Christmas to save the life of your child with a medical procedure?
[93] And you couldn't borrow it.
[94] What would you do?
[95] You'd find it.
[96] And all of a sudden all this, oh, I have to do this.
[97] I have to do that.
[98] And bull crap, we're getting $10 ,000.
[99] If you make it a priority, it happens.
[100] It's like it's life or death.
[101] Whatever you focus on, you'll see.
[102] all of a sudden all this stuff we think we need when you are trying to save the life you know when you put it in that kind of a mental gymnastic routine then you know then you're forced into looking at your life realistically yeah because dead isn't life or death but you kind of have to make it that way no it's not it's not but if you say you know if you act like that's how important this is until it becomes important you're not going to do it that's the thing as long as there's something something else.
[103] That's any goal in life.
[104] You're not going to do it.
[105] This is the Ramsey show.
[106] Buying your first home is a big deal and sets the stage for your financial success.
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