You Can’t Hack Your Way Into Wealth!

[0] Live from the headquarters of Ramsey Solutions, this is the Ramsey Show.

[1] It's where we help you win in your life.

[2] We're going to help you win with your money, with your relationships, and in your work, AAA 825 -5 -2 -2 -25 is the phone number.

[3] AAA 825 -5 -2 -2 -5.

[4] I'm Ken Coleman, Dr. John Deloney, joins me this hour, and we are here for you, so let's get to it.

[5] And it's going to start us off in Raleigh, North Carolina.

[6] And how can we help?

[7] So basically, I am a recent graduate from North Carolina, A &T, and I have been struggling to find my passion in graphic design and that world, and I just really need help on trying to figure out my passion, and I also need help on trying to figure out my finances and find the right career to help me pay my student loans.

[8] Okay.

[9] How much debt do you have?

[10] I am in $25 ,000 worth of debt.

[11] That's including credit cards and should get loans.

[12] Okay.

[13] And what is your income right now as a graphic designer?

[14] Well, probably like less than $1 ,000 a month.

[15] Are you just freelance part -time?

[16] I'm a freelance graphic designer, and I also work as a part -time customer service representative.

[17] Okay.

[18] And so when someone tells me I'm trying to find my past.

[19] Passion.

[20] The way I define passion is it's just find something I really enjoy doing, right?

[21] Just there's some meaning in it.

[22] It's enjoyable.

[23] So we're on the same page with that.

[24] So.

[25] Correct, yes.

[26] So when someone tells me, well, I haven't found it in graphic design, that tells me that at some point you chose graphic design as a destination or a direction based on what you know about yourself.

[27] Is that fair?

[28] That is true.

[29] Okay.

[30] So let's forget graphic design.

[31] Let's just take, let's just take that out of the equation.

[32] Let's not worry about titles, the type of work.

[33] I want you to just fill out for me, just kind of real quick, don't even overthink it.

[34] What would you do tomorrow if I paid you what you needed to make and you just were like, I'm going to try this tomorrow.

[35] I may try this for two weeks.

[36] I'm not committing the rest of my professional life to it.

[37] I just think I'd like to try this, Ken, and just see if I'd like it.

[38] What pops to the top of your mind?

[39] Become an illustrator and doing animation.

[40] Well, that just flowed right off.

[41] off the top, huh?

[42] How much have we thought about that?

[43] Well, I've always wanted to do that.

[44] Like, since I was a child, I knew I wanted to create cartoons and illustrations, but I feel like people don't want to see that, and I don't feel like I can actually do it and make money.

[45] Now we're on to something, Dr. John.

[46] We've got a lot of imposter syndrome going on here.

[47] I doubt that anybody will like the illustrations that I will draw.

[48] Fair?

[49] Yes, that is true.

[50] The giggle reveals every time.

[51] All right, so this is, I want John to weigh in on this because I think this is, this is no question on mindset.

[52] This is a mental thing too.

[53] But I'm going to tell you that you're just dealing with good old -fashioned doubt.

[54] What we now call imposter syndrome is such a goofy phrase.

[55] Number one, you're not an imposter.

[56] You're the real deal.

[57] If I talk to everybody that knows you, Ann, they would tell me that Anne was doodling and drawn or whole life.

[58] I'd have teachers tell me about your talent.

[59] I'd have coaches, I'd have parents, siblings, friends.

[60] Everybody would say that Ann is not an imposter in wanting to do illustrations and animations.

[61] And I can also tell you that you don't have a disease.

[62] You just are dealing with some good old -fashioned doubt, and doubt to me is defined as, I don't believe that something good will happen if I move forward on this.

[63] And so you chose something that was close to animation and illustration, right?

[64] Yes, correct.

[65] All right.

[66] So let's just simplify.

[67] this for a second.

[68] And I want to bring John in.

[69] He's always got great insight on what we're thinking and feeling.

[70] But I just want to be very practical for you.

[71] Okay.

[72] The step forward on this is very simple.

[73] You need to identify all the different types of jobs and work that are in that illustration animation field.

[74] I mean to the top of the Disney animators all the way down to what an entry level role would be doing this for this.

[75] Okay.

[76] You know that world better than I do.

[77] and in about an hour online you could get a pretty exhaustive list of all the types of jobs in those fields true or false that is true that is true is my number one company I want to work out but that's true great I'll come back to that in just a second but I got a hurry okay so I'm going to identify what's out there and then I'm going to I'm going to ask myself four questions you got something to write with yes I do okay here we go first question is once I've seen all these different types of jobs that I know allow me to illustrate or animate do the thing that that I love that allow me to grow.

[78] Now I've got to ask this question, what education do I need may or may not be a degree?

[79] You just graduated anyway.

[80] Do you need further licensing certification?

[81] That's what I mean, okay?

[82] So do I need to learn anything more?

[83] Okay.

[84] Now I had to ask, what do I need to do?

[85] What's the experience I need to eventually get to Disney?

[86] So I'm looking at entry level.

[87] I got to start here, then I climb here.

[88] That's what do I need to do.

[89] And I begin to see what a potential path would look like.

[90] The third question is, what is that going to cost me?

[91] What's it going to cost me?

[92] If I got to do some additional training, there's a cost to that.

[93] You're in debt, right?

[94] And then fourth, how long is this going to take based on the fact that I got $25 ,000 in debt, based on the fact that I got basically a part -time job right now?

[95] And so I look at what's going to cost and how long will it take?

[96] And now I've got myself a plan.

[97] Do you understand those four questions?

[98] Yes.

[99] What do I need to learn?

[100] It's actually a month perfect.

[101] Great.

[102] What do I need to do?

[103] to learn, what do I need to do, how much it's going to cost, how long it's going to take.

[104] And all of a sudden, it's not so intimidating, not this big, giant mountain you have to climb.

[105] You tracking with me?

[106] That is true.

[107] It's perfect.

[108] Okay.

[109] Now, John, I want you to jump in.

[110] What are you hearing?

[111] I'll leave you with this.

[112] And you said this.

[113] There's a great researcher who researches imposter syndrome, and she says, the definition of imposter syndrome is the fear that the world is judging you as harshly as you judge yourself.

[114] Wow.

[115] So today that crap ends.

[116] Fair?

[117] Yeah, that is true.

[118] I need to stop it.

[119] Yes, and here's how you stop it, though.

[120] You don't just walk around the house chanting it because you're, that makes you a weirdo.

[121] And you don't make some vision board and like light candles under it.

[122] Here's what you do.

[123] You draw every single day.

[124] Yep.

[125] Every day at 5 a .m. to 6 a .m. before your job, you draw, or 6 a .m. to 7 p .m. or 9 p .m. to 10 p .m. But every single day of your life, you draw.

[126] And what's going to happen in two years, three years, three years, you're going to have an entire portfolio and you're going to start finding this crazy thing called your voice and then you've practiced and then you got better and you know what you're going to start doing loving it and then ding ding you found this silly thing called passion right here's the last thing I'm going to tell you and this is the least popular thing I'm going to leave you with the worst thing an artist can do is owe somebody money because that means you have to you have to hedge you have to sand off the edge of who you are in order to please somebody else so you can get paid.

[127] That is true.

[128] So I think in addition to what Ken told you, in addition to drawing every day, I want you to go get two or three or four jobs and pay this freaking 25 grand off.

[129] Not sexy, not towards a thing.

[130] Maybe you can find that, and that'd be amazing if you get one in a animation house in North Carolina or something.

[131] But I want you to just get this debt out of your life.

[132] Then you can afford to go be an intern when they offer.

[133] to you.

[134] Then you can afford to get seven roommates in New York and go be an illustrator for a small -time print house shop or whatever the thing is, the next step is.

[135] But get this debt out of your life so that you don't have to cash in your integrity for art. So good.

[136] So true.

[137] You've got this, Ann.

[138] Let's increase our income while we're planning for the future.

[139] Get this debt out of your life and you are on your way.

[140] No more doubt.

[141] I love it.

[142] Good stuff.

[143] Thanks for the call.

[144] And this is The Ramsey Show.

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[165] dot com slash deloni welcome back to the ramsie show so excited that you are with us i'm ken coleman dr john deloney joins me we're here for you this hour taking your money questions relationship mental health work related questions triple eight 8255 -225 that's triple eight eight two five two two five fabulous studio audience today you're a big crowd out there john so always fun we'd love for you to come watch the show in the lobby and come out say hi take some picks and don't forget uh thanks to papa dave you get some uh coffee and baked goods it's all free and uh i think this crew got on the internet and realized dave wasn't going to be here and they were like it's time for us to go then that's right they're like let's party with kin and john that's not what they said not even no they're like oh man yeah they're disappointed we're going to try to do our best today uh we won't be grumpy like dave lucky kin and i both have um a lot of practice disappointing people all the way back to our high school dating days yeah you're wow that's It's rather generous.

[166] I think much earlier for me. You must have had a much better run at it.

[167] Been disappointed people for a long time.

[168] Yeah, we're used to it.

[169] Let's go to Toronto, Canada now where Adam is there.

[170] Adam, how can we help?

[171] Hey, how are you guys doing today?

[172] We're doing great.

[173] What's going on?

[174] So I've got a, just looking for some advice.

[175] I'm a small business owner, and I'm working on the side of owning my business as well I'm in school right now for business, but I'm just trying to figure it what the big next move is and if it's worth it for me to keep working on the side.

[176] And yeah, like I said, just kind of some advice.

[177] Okay.

[178] Do you, when you say you're trying to figure out what the next move is, you got an idea?

[179] Yeah, I do have an idea.

[180] I want to, I'm planning on investing some money into my business and scaling up a little bit.

[181] And it's a contracting company.

[182] So we do construction renovations to people's homes and things like that.

[183] So I'm looking to try and...

[184] I'm thinking the right idea is to hire on a couple more guys and get a truck and trailer and have a couple of crews going.

[185] Okay.

[186] The job I'm working separately right now is quite lucrative for being just like a part -time job.

[187] It's on weekends and pretty early in the morning.

[188] What are you doing?

[189] And how much are you making off of that?

[190] It's a subcontracting gig, doing painting, and it's it's the hours kind of vary like we we start really early and we're done around noon hour but it's about a hundred dollars an hour okay and so that is that your main income or is the contracting business your main income um that's my it's more steady for sure uh my contracting generates more revenue when it when it does you know what i mean it's kind of when it rains the course type of deal What are you making as a painter on the weekends?

[191] What's your gross?

[192] Like per year?

[193] Last year, probably just doing it on the weekends about 50 ,000.

[194] Okay.

[195] And how much money are you considering sinking into this contracting business?

[196] Probably about 30, I'd say.

[197] 30 ,000?

[198] Is that include, is that payroll for new guys and or equipment?

[199] or does that include everything you were mentioning?

[200] That'd be the equipment and like a startup payroll for like a month for a couple of guys and then the truck and the trailer and everything.

[201] You got $30 ,000 sitting in a bank account?

[202] I got $20, $25, roughly, but with expenses going on with the business.

[203] And like I said, I'm in school right now, so life is a little more expensive than I'd like it to be.

[204] All right, so you called John and I and you're going, all right, I need some advice.

[205] which way are you leaning?

[206] Because we've got a snapshot of the financial picture and I think we've got a pretty good snapshot of your personal schedule.

[207] So I'm leaning one way, but I'm curious, what were you considering?

[208] You're going, all right, John, Ken, tell me what you think.

[209] I'm definitely leaning towards investing myself and my future, like my business.

[210] I don't want to work for, I want to work for myself in the future, for sure.

[211] Yeah.

[212] But I just, I'm kind of at a point now where I don't really know what to, what is the smartest move to do next.

[213] Like if I should rather than be getting tools and another truck and trailer and whatnot, should I be potentially looking into stock options and...

[214] No, no, no, what are you in school for?

[215] What are you learning?

[216] I'm in for, it's a general business program at a college.

[217] You're making $100 an hour at a trade and you're running a crew, of making an additional group.

[218] What is this going to teach you?

[219] I kind of wonder the same thing every day.

[220] I started my business while I was in school, so I didn't have this business before I went to school.

[221] It's kind of the, I feel like it's the reason why I started business.

[222] Adam, listen, if you cut the school right now, I'm not telling you to do it, but if you did, how much time and money would you be saving that would allow me to advance this goal of having the cash necessary to launch into my own business, or excuse me, not launching, to grow the business.

[223] I mean, that's time and money.

[224] How much would that advance the goal?

[225] A lot because it definitely alters my schedule with how much I can be on the job and how much I can be marketing.

[226] I'm 22.

[227] All right.

[228] I got one, two, three degrees after the age of 22.

[229] You're fine.

[230] If you're making a hundred bucks an hour and that part -time gig can help float the creation of a brand new business and that's what you envision yourself doing 10 or 15 years down the road and by the way you're learning skills and getting contacts doing your side hustle that's going to help you with you have a moment right now bro when you just take the moment and if it doesn't work out all right fine i'm going to go back to school and you see what i'm saying i i totally do uh this is however my last i'm in my last semester of schooling we'll lead with that next time dude yeah that would that would help us um why wouldn't you pause your business and work two or three more days a week making a hundred bucks an hour i agree with that save up your cash finish your degree you're trying to do everything all at the same time yep i would paint more hey john's right adam finish the degree my goodness now you got one semester left finish it i would make more money painting i would stack up more than just the 30 000 way more initial i i would stack up if i were you i would paint full time which you're not and I would I don't have the availability to do that it's more it's kind of like fair but hold on you can make a hundred bucks paint for this one contractor but you can also put up signs and do paint on your own you're developing a reputation yeah he would not pay you a hundred bucks if you weren't really good at you can make more money what we're saying is within your schedule you need to make more money painting save up I would say a minimum of six months of operating cash for the construction contracting business six months okay yeah and then I would invest in it.

[231] But invest smart, man. I wouldn't buy a machine when I could rent the same machine.

[232] Okay, yeah.

[233] Well, the equipment I'd be buying is like just truck and trailer.

[234] I've already got a truck in a trailer right now.

[235] But my point is, don't get a brand new truck and a brand new trailer.

[236] Buy the oldest possible truck you can get that still runs.

[237] Yeah.

[238] So you're on the same page with us.

[239] I just think you were calling and asked for permission, something you didn't need.

[240] I would finish the degree at this point because it feels like we've got sunk costs.

[241] Let's go ahead and get it.

[242] It doesn't hurt you.

[243] But then be smart, man. Stack cash and grow slow.

[244] That's the goal.

[245] Okay.

[246] You got it?

[247] The thing that burns young construction crews is debt.

[248] That's right.

[249] They go buy the biggest truck, a couple of big trailers, all new tools, hire the guys, and everything gets off to a blazing start, and then there's a dip in the market.

[250] There's a dip in the whatever.

[251] Somebody cuts their prices, and all of a sudden, that debt payment still has to happen.

[252] And it gets messy.

[253] Or your workers don't show up, and you just, but you still go.

[254] You've got to be making those truck payments, right?

[255] That's right.

[256] It's get you in trouble.

[257] How many times have we heard Dave talk about the growth here at Ramsey that we would move at the speed of cash?

[258] Yeah, that's right.

[259] And I think that's one of the great phrases of all time.

[260] And that, because you get to make that relative to your environment.

[261] Right.

[262] So some of you're out there going, okay, I don't have Adam's situation.

[263] I think what John is saying is applicable to you, too.

[264] It's just move at a moderate, conservative pace so that you limit, mitigate your damage.

[265] What do you tell somebody who, like, this guy, and you talk to so many people in this space.

[266] I'm interested because just for my own personal.

[267] He wants to own a contracting business.

[268] I want to redo kitchens.

[269] Yet people keep hiring me to paint.

[270] And I got a gift of painting.

[271] I don't want to be a painter.

[272] I want to be a this, right?

[273] Yeah.

[274] I don't want to be the bass player.

[275] I want to be the lead guitarist.

[276] You're the best bass player around.

[277] And you always have work.

[278] At what point do you say, I'm going to lean into this other.

[279] thing because the universe seems to be telling me. The answer is immediately and often.

[280] Lean into painting while I'm growing this over here.

[281] So play bass guitar in every band you can get and keep sitting in your basement practice and lead.

[282] Because contracting is hiring subs out anyway where the painting, he is the talent.

[283] So I think your advice to him was great and I love that.

[284] Yeah, really good.

[285] All right.

[286] Hey, we've got to do a couple commercials and we'll be right back.

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[296] Welcome back to The Ramsey Show.

[297] I'm Ken Coleman.

[298] Dr. John Deloney is joining me alongside, and we're here for you, AAA 825 -5 -2 -2 -25.

[299] I don't know if you've heard us talk about it, but we're pretty excited.

[300] We've got this brand -new event called Total Money Makeover weekend, obviously based on the wildly popular book by Dave Ramsey, Total Money Makeover.

[301] And this is happening May 10 and 11.

[302] It's going to be right here on our campus and our fabulous event center.

[303] And it's a weekend, as you can tell, and you're going to get a crash course on everything we teach about money, brand new content from all of us.

[304] And it's with a money focus.

[305] And so it doesn't matter what baby step you're on.

[306] If you just need a little spark, a little juice, if you will, to get past the stages that you're in, stay motivated, stay focused.

[307] This event's going to help you.

[308] We're going to not only be speaking with you, but we're going to open ourselves up for a lot of Q &A, a lot of audience interaction, because that's something that you have said you want.

[309] So it's going to be a lot of fun.

[310] Early bird tickets are now on sale for $99.

[311] but for limited time and this is the best deal won't last it's going to sell out we only have 2 ,400 seats fantastic arena but it's going to sell out so get your tickets now at ramsysolutions .com slash events ramsysolutions .com slash events I just saw the rundown doc and I'm very excited about this because I get to have a little fun I'm not going to give it totally way but I will be assisting air quotes Jade Warshaw in a special fun little thing where I just get to be just a goofball.

[312] And I couldn't be more excited about it.

[313] You know what I'm talking about it.

[314] Yeah, I do.

[315] And I just left a planning meeting earlier today.

[316] Are you doing something?

[317] Well, not near as fun as you guys.

[318] But it's a very, it's a departure from the normal.

[319] Yeah, I'm excited about it.

[320] Stand up there in a lecture.

[321] It's different.

[322] So I'm very excited about it.

[323] I'm really excited about it to just be total dufous.

[324] And that's all I'm going to say.

[325] I don't want to give it away.

[326] But it's going to be fun.

[327] I mean, you never know.

[328] I might eat a pita pocket on stage.

[329] I know.

[330] I might.

[331] I don't know because Jay and I do these.

[332] I'm going to be sitting behind you just juggling pomegranates just hanging out and having fun with her.

[333] Jade's all into food.

[334] The grocery segment.

[335] We'll leave it there.

[336] That's all we're going to do.

[337] We don't know.

[338] We don't know what it's going to be.

[339] By the way, that kind of goes together.

[340] What's that?

[341] Come to the total money makeover weekend.

[342] It's Peter Pockets and Pomegranates.

[343] A lot of peas.

[344] I like that.

[345] Good stuff.

[346] All right.

[347] Let's get to Brett.

[348] He's joining us in Detroit, Michigan.

[349] Brett.

[350] How can we I was calling.

[351] I have, me and my wife got married last year, and we have about $250 ,000 in a high -yield savings account that's separate from our emergency fund.

[352] And we were wondering what we should use that money for.

[353] We have a house that we have a mortgage on.

[354] So we're wondering if we should put it towards the mortgage and pay that off early, if we should put more towards the savings, just trying to get some insight on where we should use that money.

[355] much is left on the mortgage?

[356] $280 ,000.

[357] And you have no debt, is that right?

[358] No debt.

[359] We both started working right from out of high school and have zero debt, have paid for cars, and the mortgage is the only thing.

[360] Well, you're familiar with our baby steps, I'm assuming, since you made this call today, right, Brett?

[361] Yeah.

[362] Brett, tell us what Baby Step 6 is.

[363] Loud for everybody in the back.

[364] Pay off your house.

[365] what is what is this quarter of a million dollars that you have in in liquid cash what is it what is it giving you 5 % which is not even what my own name is you even missed the question not that you would brett you spreadsheeter what is it giving giving you that's good um a piece of mind kind of sitting there what's the piece of mind um I don't know honestly just I had the money there because I've kind of thought about changing my career path, which is kind of why I didn't want to get rid of it.

[366] Okay, hey, let's stay right there.

[367] Let's stay right there.

[368] I'm going to ask questions and John will just pick away at you.

[369] How about that?

[370] We're going to tag team this.

[371] You ready?

[372] Tag team back again.

[373] Here we go.

[374] W .W. Okay.

[375] What career would you pivot to?

[376] That I'm not sure.

[377] Right now I own a landscaping company.

[378] and it's all right it doesn't matter it doesn't matter so let's say we pivot Brett pivots to career X all right yeah what is risky in your mind I want you to be realistic here for John what's risky about that move what would you have to do to where you would need the $250 ,000 as smart as you are what would you have to do um lose more than that in a bad investment, that's about the only thing.

[379] But that's not happening.

[380] I'm not even talking about it.

[381] I'm saying you go get qualified for said thing that we don't know.

[382] Okay?

[383] Yeah.

[384] And you go after it.

[385] What would have to happen for you to need this $250 ,000, given your financial situation?

[386] Pretty much nothing, honestly.

[387] I can't think of anything, honestly, that would we need it, especially if my wife, I guess if my wife stopped work.

[388] if something happened and she couldn't work.

[389] She's not going to do that.

[390] Here's the big question I've got.

[391] Close your eyes.

[392] Are they closed?

[393] Can I do this as well?

[394] You can do this.

[395] Your house is paid off and you don't owe anybody anything.

[396] And you start feeling a little bit nervous.

[397] Would you borrow, take a HELOC out in your house at 5 % to put $250 ,000 in an account?

[398] Would that make you feel better?

[399] No. No. what would be awesome about changing jobs is having not a single payment on planet earth nobody owes you don't owe anybody anything okay does that make sense yeah because the moment you walk out you're going to have this 250k in an account right and there is some security in there don't get me wrong no question about it but the first thing you're going to have to do when you make this job leap to whatever it is is figure out how you're going to pay your mortgage because you owe $280 ,000.

[400] Imagine that's gone.

[401] Okay.

[402] And then the first thing you're going to decide is, where do I really want to work?

[403] Because I don't have any bills.

[404] Yeah.

[405] By the way, Brett, the ideas come really freely when we have zero stress at all.

[406] And as smart as you've been with your money, you've identified with John that you've got some stress over actually liquidating this money to pay your house off.

[407] That's what this is.

[408] Yeah, I definitely do.

[409] I know.

[410] That is what it is.

[411] And by the way, we get it, but we've just heard this call 800 times, just different name, different location.

[412] And there's a psychology to letting go of this.

[413] Yeah, it's a misaligned security.

[414] You think you're safer because you have this cash.

[415] Make no mistake.

[416] Having that much cash, there's not a lot that can hit you that you're not going to be able to take care of.

[417] And you signed a piece of paper that told somebody else, I'm going to end up giving you $280 ,000 plus interest for this thing that you let me have early, this house.

[418] And so that money's technically not even yours anymore.

[419] It's already, it's already somebody else's on a promissory note.

[420] You're just holding it and you're making them rich.

[421] Right?

[422] So if I'm you, do you have an emergency fund already paid out?

[423] I mean, I mean, already saved up?

[424] Yeah.

[425] Yeah, there's about $30 ,000 in a separate account for an emergency fund.

[426] Okay.

[427] This is, I'm not giving you any ratios.

[428] I'm not giving you any principles.

[429] I'm just telling you what John Deloney would do in John Deloney's house.

[430] I would take 20 of that $225 and I would get an even Stephen $50 ,000 in an emergency fund and I would take every other penny of it and I would put it towards my house.

[431] And then I would look at my wife and say, let's do a wild sprint.

[432] And by August 1st, let's have no mortgage.

[433] Are you in?

[434] That's what I would do my house.

[435] Yeah.

[436] And Brett, I agree with you 100%.

[437] I was thinking, juice that emergency fund where you get a little bit of, you know, a little bit more stability.

[438] It's like that little blankie.

[439] You're like, okay, that's pretty good emergency fund.

[440] And then I would focus on the raise you guys are going to get when you pay that last house payment.

[441] I've already started doing that with one of my kids going to school.

[442] And, you know, I'm like, I just got to raise.

[443] Exactly.

[444] I just think it's what you focus on.

[445] And John's right.

[446] I thought that was a brilliant analysis.

[447] What's your, what is your, what's your monthly mortgage payment?

[448] Like, $2 ,600.

[449] Dude.

[450] How many lawns do you have to mow in Michigan to make $2 ,600?

[451] A lot.

[452] Yeah.

[453] I got that as about $3 ,600.

[454] $32 ,000 raise with some quick math.

[455] And I didn't go to a good school, so you need to check my math.

[456] Yeah.

[457] It's about $32 ,000, isn't it?

[458] I mean, that's the focus.

[459] Brett, you have no house payment in short order and a $32 ,000 raise, which may set you up nicely to make this professional pivot, whatever it is, and no stress.

[460] I love it.

[461] Way to go, Brett.

[462] I think that's awesome.

[463] Oh, I love it.

[464] Oh, my goodness.

[465] Folks, that's the conversation about money and how we attend.

[466] attach it to all of our fears, everything, great stuff.

[467] Doc, I'm going to send him a bill.

[468] I thought that that was really good.

[469] You should charge him a little extra for that.

[470] I'm going to.

[471] This is The Ramsey Show.

[472] So here's a quick math refresher.

[473] There are only 24 hours in a day, so your business needs to streamline tasks that are time suckers and focus on activities that make money.

[474] So to reduce headaches as they scale, smart businesses use NetSuite by Oracle, the number one cloud financial system.

[475] NetSuite helps you improve efficiency by bringing all your major business processes into one platform.

[476] So join the more than 37 ,000 smart businesses like Ramsey solutions that have done the math and graduated to NetSuite.

[477] And right now you can download NetSuite's KPI checklist absolutely free at NetSuite .com slash Ramsey.

[478] That's netsuite .com slash Ramsey.

[479] Welcome back to The Ramsey Show.

[480] Thrilled to have you with us.

[481] I'm Ken Coleman.

[482] Dr. John Deloney is in studio with me as well.

[483] We're here for you.

[484] You got your money questions, relationship questions.

[485] How about work questions?

[486] You want to get that bigger shovel?

[487] John and I are here for you this hour.

[488] Triple -8 -8 -25 -5 -2 -25.

[489] Alyssa is up next in Philadelphia.

[490] We just met some nice folks from Philadelphia in the lobby.

[491] It's Philadelphia today.

[492] Or day -to -day.

[493] Boy, that was a mouthful.

[494] I'm not sure.

[495] Alyssa, rescue me. How can we help?

[496] Oh, well, I'm going to start by saying I feel like I'm talking to a bunch of cousins I haven't seen you forever.

[497] We listen to you guys all the time, so this is kind of trippy.

[498] That's so fun.

[499] What's up, Cous?

[500] The, like, cool cousins, not the...

[501] Oh, totally.

[502] No, the slightly awkward ones.

[503] Oh, yes.

[504] I thought that's where you were going, which I would understand.

[505] What's up?

[506] Well, to just get the sad part out of the way, and a month ago today, my father passed away.

[507] Oh, man. One month ago?

[508] One month ago today.

[509] Oh, wow.

[510] I apologize if some tears happen here.

[511] No, it's okay.

[512] No, no apologies.

[513] What happened?

[514] Well, he was fighting stage four cancer.

[515] It was unexpected in that it was just diagnosed in October.

[516] Wow.

[517] And he had surgery in November, started chemo in December, and then January 25th.

[518] My mother found him in their living room unresponsive.

[519] So he was only 62.

[520] and it's just insult to injury in this whole situation.

[521] So I already know the end of this conversation is going to be you guys telling me I have to have a difficult conversation.

[522] I know that.

[523] My question is in the how and the when.

[524] So since this happened, my mother has been staying with us.

[525] Like I said, she found him.

[526] She found him in their home.

[527] And so it's a whole layers of just, trauma and grief in this.

[528] I do have two or four small children and and not the biggest of homes.

[529] So we've been making it work, but it's not the best of the best relationship to begin with.

[530] She's got some undiagnosed mental things, namely bipolar disorder.

[531] And that's something that my father really took on himself to kind of shield us from.

[532] He did leave her with a $500 ,000.

[533] life insurance policy, which gives me some breathing room, but that's a whole other thing that I've never done this before.

[534] I don't even know how to start telling her to live off of that.

[535] But it kind of, the question comes in is, I know Dave always says you don't make those big moves in tragedy like this for at least six months.

[536] But we can't keep living like this.

[537] There are no boundaries that she will accept.

[538] It's to the point where she's actually sleeping in a bedroom, with two of my children and I wake up in the morning and they're snuggling in bed with her.

[539] It's just there's no healthy boundaries and it's not giving room for any of us to grieve in a healthy way.

[540] This is different than the six -month thing, okay?

[541] The six -month thing would be selling her house and moving her into your place or selling her house and fill in the blank.

[542] If she has the money to keep her place, if the house is paid up, that's what we're talking about when it comes to six months.

[543] this is a wild tragedy came upon you right and let's take it away from your dad because it's a really heavy moment like all of a sudden the Deloni house is flooding and I call Ken and I'm like hey can my family come crash at your place Kim and be like absolutely we'll figure it out and I bring the Delonies and we crash in his living room that is not the new normal that is kin saving my family for an evening or maybe even two evenings right and then it's my responsibility to get to a place where then I can grieve and begin to make decisions and so the conversation is not going to be as difficult as you think it is unless your mom chooses to react in any number of unhelpful ways you can't control that at all period okay right the greatest gift you can give your mom is for you to be well and whole so that you can walk alongside her in the next season and for you to be well and whole you need boundaries in your home period okay so the conversation is something along the lines of mom we got to get you home and i got to get my house back in order i would i'm willing to walk with you x y and z and you and your husband talk about what that looks like i'm willing to go to the probate and help probate this thing and we start getting checking accounts and insurance and all the death certificates all that stuff, I'm happy to walk alongside you and help you.

[544] Or I'm happy to completely step back and let you do this.

[545] You tell me, this part is happening and then I'm asking you for what role you want me to play moving forward.

[546] And then the most important part of this is by March 1st, by March 15th, you've got to be back at home.

[547] How do I walk that?

[548] We have to put a date on it.

[549] Do what?

[550] How do I walk that?

[551] Number one, like you said, I don't know how she's going to respond.

[552] She could be totally level -headed one day and the next hour that that switch comes.

[553] But I also have that element of she said to me, you know, that's where he died.

[554] I can't even walk into that house.

[555] So I'm trying to walk the line of grace, but I completely agree with you.

[556] I got you.

[557] I got you.

[558] Then it might be time for a one -bedroom apartment.

[559] It might be time for one of your sisters or brothers to stand up.

[560] If it was my mom and my dad's home, I would recommend to my mother, that she get a one -bedroom apartment near my family or near my sister and my brother.

[561] Because there is absolute, and the environment's going to play a huge thing, a huge role.

[562] And over a three -month lease, she's going to go back there for an hour.

[563] She's going to go back there for an hour and 30 minutes.

[564] She's going to go back there and deal with clothes and then have to leave, right?

[565] So this is an exposure, a slow over time.

[566] It has to happen.

[567] You can't just never go back in there again.

[568] Right.

[569] Unless she looked at you and says, I'm never going in that home again.

[570] You and your brothers and sisters sell everything, get rid of everything.

[571] I'm never going back there again.

[572] Well, okay.

[573] Then we're going to have to go sit with an attorney and have to sign over a bunch of stuff and it changes the dynamic.

[574] None of this, though, is you're spending a lot of time in your mind, scenario after scenario after scenario and what you're doing is you're just making yourself mad.

[575] Rehearsing potential things, just go put the thing on the table.

[576] And let's get to the reality part of it all.

[577] Yeah.

[578] Rip the Band -Aid off.

[579] Okay.

[580] And you can not control what she does or says afterwards, period.

[581] And I hate that for you, but you can't.

[582] I do have a quick financial question.

[583] You said that she got a $500 ,000 life insurance policy?

[584] Pending the autopsy, yes, that is what's going to come to her.

[585] Okay.

[586] And do she owe anything, any debt at all, or anything on the house?

[587] They do owe on the mortgage, yes.

[588] How much?

[589] I think it's around 260, 270.

[590] Yeah.

[591] I'm only asking that, John, because I feel like if a part of everything else you said, you lay out, okay, mom, if you don't ever want to go back there again, here are options.

[592] Here's math, yeah.

[593] Okay, so we can pay the house off and, well, at this point, just sell it.

[594] Yeah, I'm sorry.

[595] So just sell the house, and then whatever she makes on it.

[596] So let's say she's going to walk over $200 ,000 for round numbers, and then she's got the $500.

[597] So now she's got $700 ,000, the one bedroom apartment or whatever that John's talking about is a part of the healing process.

[598] And you just kind of explain to her, hey, you're going to be in great shape financially.

[599] And if she can't get back in there and that's too much to overcome, but it's all about her leaving the house.

[600] Yes, the challenge is that most people want to start because it's easier.

[601] They want to start with the spreadsheet.

[602] Yeah, that's right.

[603] And what I want you to do is ask your mom to invite you into the parts of what comes next that she wants you around for.

[604] Okay.

[605] See what I'm saying?

[606] And she might say everything, or she might say, if you're kicking me out, then you're done.

[607] Okay.

[608] Yeah.

[609] And that's going to be heartbreaking.

[610] You're going to have to grieve that part of your mom's transition.

[611] But you're going to feel like I lost my mom and my dad, which is sadly not uncommon, right?

[612] Or it's not, yeah, it happens more regular than you would think that you just kind of lose everything all at once.

[613] Hopefully that's not the case here.

[614] But you're going to get some pushback.

[615] right now, her body feels safe, wrapped around her grandbabies.

[616] And what you're saying is they need to get my home back.

[617] Do you have brothers and sisters that can help share the load here?

[618] I have one brother who has cut off all communication with her because of how she is.

[619] Okay.

[620] All right.

[621] That's just, yeah.

[622] That's tough.

[623] I'm so sorry.

[624] I'm so sorry for your loss.

[625] What a mess.

[626] Hang in there, Alyssa.

[627] Appreciate the call.

[628] Wow.

[629] Tough stuff.

[630] All right.

[631] That's going to do it for this hour.

[632] I want to thank Dr. John Deloney, my co -host.

[633] I want to thank James Childs are a fear.

[634] leader and all of the gang behind the glass to keep us on the air.

[635] And mostly we want to thank you, America, for joining in.

[636] This is your show.

[637] This is the Ramsey Show.

[638] Live from the headquarters of Ramsey Solutions, this is the Ramsey Show.

[639] It's where we help you win in your life.

[640] We want to help you win with your money, win in your relationships, and when at work.

[641] And if you're not winning any one of those areas, it's going to start to affect all the others.

[642] Dr. John Deloney is with me. I'm Ken Coleman.

[643] I'm Ken Coleman.

[644] I'm thrilled to have you with us.

[645] 3 .8 -825 -5 -2 -2 -25 is the phone number to jump in.

[646] 3 ,8 -8 -2 -5 -2 -25 -2 -5 -2 -5.

[647] All right, is that Minot or Minot?

[648] I like to say things right.

[649] We'll see.

[650] Elijah is with us in North Dakota.

[651] I've got to get to the bottom of it.

[652] Is it Minot or Minot?

[653] It's Minot.

[654] Mine -N -N -N -U -N -N -Hat.

[655] It's optioned, indeed, but you're wrong.

[656] I thought I was hooked on phonics, John.

[657] I thought I was hooked on phonics.

[658] Not today.

[659] All right, Elijah.

[660] How can we?

[661] we help.

[662] Okay.

[663] This is kind of a very strange situation.

[664] So I'm 23 years old.

[665] I work out here in the oil field.

[666] I make $26 an hour, 12 hour days, week on, week off.

[667] I have about nine hours of free time while I'm at work.

[668] I'm a well watcher.

[669] I basically pretty much get numbers every hour or every three hours pretty much my total amount of labor throughout the day is equates to about three hours of work I don't have anybody down my throat so I basically just have a bunch of free time just sitting in my pickup doing nothing really and my question is how do I use my time in the internet to increase my income while I'm out here jobs look really scammy online and I know there's a lot of different avenues I can pursue and kind of got me in a state of paralysis by analysis.

[670] And I would like your guys' input on what you would do specifically in the situation.

[671] All right.

[672] Let's start with, you've got all these ideas.

[673] What are the top two or three that interest you?

[674] I feel like the most scalable option is trying to get a following through social media.

[675] And I also know that with any sort of endeavor I go into money -wise, I need to have marketing and sales, which I am developing my skills in.

[676] All right.

[677] So hold on.

[678] Hold on.

[679] Hold on.

[680] I want to crystallize these ideas.

[681] Okay.

[682] So one of your ideas to make extra money in the nine hours you're sitting in the truck is social media, which means you've got to build that up to a certain point.

[683] By the way, that's pretty public.

[684] Would your bosses if they saw that social media channel, would that cause you a lot of heartache and even make you lose your job?

[685] I don't think so.

[686] I mean, I have posted videos out here and he has viewed my account, so I don't think so, especially if I was getting traction.

[687] But that's not going to make a lot of money right away.

[688] So what's the other idea?

[689] Right, right.

[690] That's exactly my thing.

[691] What's another idea?

[692] The only thing I could think of is like maybe e -commerce or like some sort of freelancing but i also like don't have any really skills but now everything seems to be again very scammy like i've went around trying to apply for jobs and every like i've applied to a bunch of them and it seems like people are just trying to get my information and take my money all right so here's the deal that's right if i were you and i want john to take i want him to say what he would have if i were you i got nine hours in the truck so i'm essentially going to have to make money off my phone and i would I always scroll.

[693] In my laptop.

[694] Okay, great.

[695] Your laptop as well.

[696] So I'm looking at not things that require scam, but things that I completely control.

[697] So the resell industry is not a scam.

[698] You know, so for instance, if you're buying stuff on that week off, so you're one week on, one week off.

[699] I interviewed a couple several years ago on my show that they started doing flea marketing and garage sales.

[700] They would go buy stuff.

[701] So, for instance, they'd go buy a leather bag.

[702] or two bucks from a garage sale because they knew what it was and they would clean it up whatever and then they would turn around sell it for 20 okay and so they just kept doing this for about two years and then they got pretty good at it and then the husband started making YouTube videos documenting what they did and now the guy makes you ready for this 1 .5 million dollars a year off their YouTube channel talking about flea marketing flipping wow a flea mark flipping or garage sale flipping so that's not a they are just simply going to the work and so I'm not, I don't want to hang that idea on you, but I would be thinking, what can I do in my week off that would enhance my nine hours in the truck from an e -commerce standpoint?

[703] So that's the only idea I have, but I know in the week off I could be going buying stuff, fixing it up, listing it, and I'm checking on it and all that stuff in the car.

[704] That's just one idea because you're limited to what you can do, but I don't want you thinking that you just have to have a scam.

[705] Elijah, here's my thought.

[706] and maybe I'm out to lunch here in an average football game an NFL game I'll sit down and watch three or four hours of a game right there's actually 18 to 20 minutes of actual activity happening on that field over those three or four hours the rest is timeouts planning calling plays lining up off sides there's only 18 minutes of those four hours where there's actually men running up and down the field trying to catch a ball or hit each other.

[707] But that doesn't mean the other three and three quarter hours are a waste of time.

[708] They're all part of the strategy of the game.

[709] My question to you is you're watching wells and you're supposed to go take measurements.

[710] That doesn't mean even though your job is boring, even though your job is dreadfully boring, that a big part of your job isn't making sure the well doesn't blow.

[711] yeah right I am watching like millions of dollars worth of equipment that is your job I think the bigger question here is you've got a very boring job and you don't like it yeah that'll burn somebody out quick everybody told you it's a great job dude you can get a job in the oil fields and I'm from west Texas so I it's very similar oh yeah it's a great and it's a hazardous exhausting boring lonely job most of the time No, exactly.

[712] I'm actually out here by myself.

[713] Yes.

[714] It's my nice.

[715] So either, like Ken said, you get really good at doing work during your off week, which I think is really wise.

[716] It's a 23 -year -old without a family, without kids, without mortgages.

[717] Well, I do have a fiancé and actually a three -week -old child.

[718] Oh, well, my bad then.

[719] So now you've got a little less time.

[720] You're in it now, yeah.

[721] But you're working 24 -7 -365 for the next few.

[722] years.

[723] But I'd have a hard conversation with myself, with my wife, or my future wife about where we're going to be, what we want to do.

[724] And I might take those eight hours that you're not working and say, okay, if I have to get qualified for something, I want to get into marketing, I want to get into another thing.

[725] You can do education in your truck from your computer while also watching the wells.

[726] And that way, if your boss ever comes out and goes, you're running another business on the side, you could say, no, sir, I'm getting a degree to make me a more valuable Yeah.

[727] Right.

[728] And then you wake up in a year and a half.

[729] You got 26 bucks an hour.

[730] You've worked on the weeks off on your on your on off weeks.

[731] And you got a qualification to go get the next thing for you.

[732] Yeah.

[733] But you hate your job, dude.

[734] You hate your job.

[735] And so I don't want you to scam on your boss just because you took a boring job.

[736] I think you need to do it right.

[737] That's just my two cents.

[738] Yeah.

[739] The conflict of interest is a real thing.

[740] But if you're just sitting there, you know, I think that's I get that.

[741] I get stuff on eBay too, right?

[742] Yeah.

[743] But I agree with you.

[744] John, I think the answer you're looking for is where do I want to be 20 years from now and how do I use the nine hours to get me there?

[745] I agree with that.

[746] But there's other ways to make money too.

[747] So really good stuff.

[748] Congrats on the baby.

[749] This is The Ramsey Show.

[750] Welcome back to the Ramsey Show.

[751] So excited that you are with us.

[752] My name is Ken Coleman.

[753] Dr. John Deloney joins me and we are here for you this hour.

[754] Triple -8 -25 -2 -25.

[755] That's AAA 825 -2 -25.

[756] Today's question of the day is sponsor.

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[767] All right, today's question comes from Samantha in Iowa.

[768] Samantha writes, we are in a predicament.

[769] We earn about $300 ,000 a year, and both my husband and I are at the top of our careers.

[770] We're cruising along in baby steps four, five, and six.

[771] The problem is our kids are miserable after our move here a couple years ago, and they're begging to move back to friends and family in Washington.

[772] Our pay will be similar to slightly lower, but the living expenses, will be much higher.

[773] Do we make our kids suck it up, or should we suck it up?

[774] We don't want to be the reason our kids are unhappy or resent us in the future.

[775] Wow.

[776] This has got some layers to it.

[777] Yeah, it does.

[778] What do you think, Kim?

[779] Oh, man, let's see.

[780] You're having me go first, and you're the psychologist.

[781] All right, I'll go first.

[782] No, no, no, no. I'm going to accept the challenge.

[783] I want to accept the challenge.

[784] This is a tough one.

[785] I'm real time in this one, okay?

[786] I don't have a set answer here.

[787] Yeah.

[788] I'm 50 -50 on this.

[789] I'm 50 % you know, you move the kids and this is just a place for whatever reason they don't like.

[790] And if we were to take this question face value, it sounds like all of them are in kind of unison.

[791] We don't like living here.

[792] I certainly understand missing the friends.

[793] And so you go, man, there's a real life resentment here that we got to think about.

[794] and if the kids are saying, hey, we just don't like living here, that weighs on me a little bit.

[795] It doesn't sound superficial.

[796] But the other 50 is kind of going, look, you're the parents and you're raising them and you give them life, gave them life, you're sustaining their life.

[797] You guys made this decision.

[798] It was best for the family financially at the time it looks like.

[799] You made some career moves and it took you to Iowa.

[800] Now, that's where I'm 50 -50, and I'm going to, I know it sounds like a politician on a Sunday morning show.

[801] I think I'm going to go, I think I'm going to go my heart here, and I'm going to tip it and go 60, 40, and I'm going to go, I would go back because they're in babysat four, five, and six, their income is, they're projecting their income is going to be just slightly lower, and I'm going to go, that's limiting.

[802] I think that may be short term anyway And cost of living when you're 4, 5, and 6 That's why we teach this process You can absorb things that people that are broke cannot So, gosh, what say you?

[803] Am I wrong?

[804] Like, man, our cost of living, is that 1 ,500 square feet difference Or is it 500 square feet?

[805] You know what I mean?

[806] Like, what are we not doing?

[807] I think I choose my kids on this one.

[808] Is that too soft?

[809] No, I don't know.

[810] I may regret it.

[811] What I would do ahead of time.

[812] often this conversation when it comes up with children is they are experiencing they are absorbing i say this often they are absorbing the tension in their home and what they miss is yes they have friends and family they've got those faces they've got those names they've got those memories but often what a kid is remembering is that and if you guys move to a new town you're at the top of your careers, y 'all are working all day, your kids may be sensing that tension into the home.

[813] Y 'all may not have been as intentional about friends and people coming over and developing relationships and getting involved in little league games and stuff like that because you're at the top of your careers.

[814] And so I would invest in, if Iowa is the place that you and your wife or you and your husband think this is for us, I would give it six months to really double down and try to make a home in Iowa.

[815] Are we involved in games in sports?

[816] Do we, we have people in our house every single week.

[817] Are we involved in a local church?

[818] Well, hold on a second.

[819] And I love where you're going.

[820] Yep.

[821] So it actually says it was a couple years ago.

[822] They've been in Iowa a couple years.

[823] Well, I'm wondering if they moved to Iowa, started their jobs, dropped the kids off in school and said, let's go make it.

[824] Oh, you're saying six months of a new rhythm or something?

[825] Of a new rhythm in their home.

[826] Yeah.

[827] What if, okay, I love that.

[828] What if the kids just don't like where they live in Iowa?

[829] Yeah.

[830] Then I think you have to ask the question.

[831] Like, if this is where our job is, this is where our job is.

[832] if this is where y 'all are choosing to live because y 'all want to like squeeze another we get to get a house with a pool instead of just a regular house go back to the regular house where your whole family has peace that's where i'm leaning right okay i didn't know i didn't know that i could defend it i felt my way through that one yeah but but mainly it's it's it's if we're all going to be miserable because look at the car in the driveway that's where i was going the kids are are very unhappy they're barometers for your home yeah but but we're We're going to make slightly more money in our cost of living.

[833] Like, groceries are cheaper in Iowa.

[834] We know that.

[835] Gas is cheaper in Iowa.

[836] You're making $300.

[837] You're going to go to $2 .90.

[838] You're going to be fine.

[839] Ain't nobody going to be fine.

[840] Yeah.

[841] I'm staring at my first kid leaving.

[842] Yeah.

[843] He's an 18 -year -old senior.

[844] Yeah.

[845] And I mean, nobody wants to hear me say it, so I won't.

[846] Yeah.

[847] But it's, oh, yeah, man, it's tough.

[848] The clock is tick.

[849] Yeah, it is.

[850] And I just, that's kind of where I'm leaning.

[851] Last year after spring break, my wife looked at me because I missed most of it.

[852] I was out speaking somewhere.

[853] and she said, hey, yeah, we got five.

[854] I know.

[855] She said, you got five more with Hank, and then he's gone, and then he doesn't come home for spring break.

[856] And it was just this, like, what?

[857] You know what I mean?

[858] So, yeah, the clock is ticking, tick and ticking.

[859] But I get a sense between the lines here.

[860] This is a family that moved somewhere.

[861] Look how much money we're going to make and did not do the work to invest in the local relationships to get plugged into the community.

[862] To where the landing was softer for the kids.

[863] Right.

[864] Because kids are so resilient And they pick up new relationships all over the place That's very good That's a good point Yeah It's a very good point And it also could be a season of life That the kids are in too Which makes it a little bit harder They may come through the storm I want to tell you something right now Our last one is about to finish middle school And it can't happen fast enough I hate middle school And I don't remember having a bad middle school experience Mine's about to finish middle school And I don't ever want it to end No I love it I love all of it I love the awkwardness, the goofiness, all the kids coming over, the squeaky voices.

[865] I love every second of it all.

[866] I wouldn't talk about that part.

[867] I'm talking about what it's like for these kids, the environment.

[868] Oh, it's hell.

[869] That's what I'm talking about.

[870] Oh, yeah, yeah.

[871] I'm not talking about the kid themselves.

[872] Oh, this is, I'm just talking about for me. Although, I would like to have you revise that answer.

[873] I'd like to bring that back up after Josephine goes through.

[874] Nope.

[875] Thank you very much.

[876] She will not go to middle school.

[877] She's going to skip it and go directly to college.

[878] Not a bad idea.

[879] All right.

[880] Let's see here.

[881] Let's, uh, let's go real quick to.

[882] Clay, I think we can get to Clay.

[883] Clay, you're on the Ramsey show.

[884] How can we help?

[885] Yes, sir.

[886] How are you today?

[887] We're good.

[888] We've got about a minute and a half, unfortunately.

[889] Let's see if we can help you.

[890] Can you hit us with your question?

[891] Oh, yeah.

[892] So I am 28.

[893] I am debt free.

[894] The house I'm living in is paid off.

[895] My car is paid off.

[896] I make a little under 30 ,000 a year.

[897] And I want to move from Lafayette, Louisiana to Denver, Colorado.

[898] And I was one of the wondering if it was smarter for me to rent a place first for a year while I put my current home on the market and search for another home in the meantime, or do I just go ahead and buy myself a place outright out there?

[899] Even if you didn't have a home, it would be smart to rent, moving to a new state, just getting the lay of the land where the grocery stores are, where the weather is, where your friends are going to end up, where your church is going to end up.

[900] So yeah, you moving across the country into a new state, I would rent six months or a year just to get the lay of the land, figure out where you even want to live.

[901] Absolutely.

[902] Yeah.

[903] And the bonus to that advice is you get your house sold in Lafayette and you're done and you got the money saved up.

[904] We want you to use that 20 % down payment is what we'd like to see, the 15 -year mortgage of the whole deal.

[905] And so take your time.

[906] And just to back John up, when we moved here with three kids, we had come from a home that we had been in for 11 years.

[907] And we rented for two.

[908] And we rented here in Nashville too.

[909] Yeah.

[910] And I don't regret it.

[911] No. We knew then that we wanted to.

[912] to drop stakes where we did, and that was very helpful.

[913] So I think that's great advice.

[914] Love it.

[915] Check out Denver, though.

[916] Check out that Denver news.

[917] Check out those headlines.

[918] I'm just going to leave it at that.

[919] It's in the news a lot.

[920] Going to think about where we move and why we're moving because that stuff matters.

[921] All right.

[922] We've got to take a quick break.

[923] We'll be right back.

[924] This is The Ramsey Show.

[925] Welcome back, America.

[926] You're joining the conversation here on the Ramsey Show.

[927] So excited that you are with us.

[928] I'm Ken Coleman.

[929] Dr. John Deloney is with me. Let's get to Sarah in Hilton Head.

[930] South Carolina, Sarah, how can we help?

[931] Hi, my husband and I are facing a relocation coming up, and the plan is to build a house, and I'm just trying to figure out what we can afford.

[932] We've kind of gotten pretty far into the process where we put down a 5 % downposit to the builder of $50 ,000, and that was on Tuesday, and we have nine days to pull out and get all of our money back.

[933] And as I'm shopping around for mortgages, I'm getting cold feet because the interest rates are just so volatile right now, and I'm having a hard time to get a clear picture of what's going on.

[934] And just trying to figure out if you think that we can afford a million dollar bill.

[935] Okay, how much you're putting down?

[936] So initially we have to put 10 % down because it's a construction loan.

[937] We have our house now that we're going to sell, and at the end of the construction loan, when we sell our house, we're going to put down somewhere between $500 and $550 ,000.

[938] Okay.

[939] And so what will your estimated mortgage payment be?

[940] Well, they haven't factored in us making that overpayment.

[941] So without us putting down $500 to $550 ,000, it's looking at about $7 ,000.

[942] a month.

[943] What's your take home?

[944] And that's including, that's including escrowing our taxes and everything.

[945] Yeah, but here's a deal.

[946] You can do a mortgage calculator.

[947] You can do a basic mortgage calculator.

[948] We probably, we have one, don't we?

[949] We have one.

[950] Ramsey Solutions .com.

[951] You can actually do it yourself with the $500 ,000 you're putting down.

[952] So essentially, you're going to have a mortgage of $500 ,000 if I heard you correctly.

[953] Is that right?

[954] Or $400 ,000.

[955] Yeah.

[956] Was it $500 or $400?

[957] It'll be about $450 ,000.

[958] It'll be about $450 ,000.

[959] 50 or 500, depending on how much we put down.

[960] So then you just look at the interest rate and you play it out.

[961] And so let's just assume that it's $7 ,000 a month.

[962] If you got your taxes and everything else, you've got to look at that.

[963] And my guess is that's way above your 25 % of your take home.

[964] Am I right?

[965] If we don't put any money.

[966] So the $7 ,000 per month is without putting any money down.

[967] That would be like a jumbo mortgage.

[968] Okay.

[969] I'm confused.

[970] I apologize.

[971] What is it going to be if you only owe $4 .50?

[972] I'm having a hard time getting a clear picture of that, but I think it's going to be somewhere around $4 ,000 a month.

[973] Okay, so what do you guys take home?

[974] So my husband brings home $325 ,000 a year, and I'm a freelancer, and so it varies anywhere between $60 ,000 and $80 ,000 a year.

[975] Okay, so you know our formula, right?

[976] Is it like 25 % to a third of your income?

[977] 25 % stuff.

[978] high end is that we don't want you going above 25 percent okay so you're giving me your gross numbers not your take home so you you got to run the numbers on your take home okay okay I think you're probably okay there I'm not the best if you're making 325 plus 80 plus 60 to 80 and you have a $400 ,000 mortgage that's that's a no -brainer that's fine that's fine it's it's okay here's what I don't like I don't like that for some reason your body is telling you to run from this.

[979] That's right.

[980] Well, it's just, it's scary.

[981] I mean, it's just, we're very risk averse.

[982] Our current home, we only owe $20 ,000 on the mortgage.

[983] Why are you moving?

[984] Why are you building a million dollar house?

[985] Okay, so my husband had a new job, and that's another thing.

[986] It's a new job, it's a relocation, so we're still, you know, getting our footing and trying to figure out what is the take home what does it look like um we are it's an expensive area my priority was the school systems and the school that i liked the best um just came with a very high price tag are you moving to hilton head no so we're in hilton head now and we're moving to um metro detroit area okay can i tell you something i would rent i think john's right there's a check in your spirit's a new job There's a lot of unknown.

[987] I don't, and you owe so little on your current house, which means you're going to get a lot of equity.

[988] You're going to have a lot of cash to sit on when you sell it.

[989] I would rent.

[990] That's what Stacey and I did, so did John.

[991] That's what me and my wife did.

[992] John and Sheila did the same thing.

[993] I would not buy a house.

[994] Especially with kids.

[995] You don't know where your friends are going to live.

[996] This is the issue.

[997] This is the issue is that the kids need to get into a school.

[998] They do.

[999] You can rent.

[1000] You do realize that people that rent.

[1001] But then we might have to change schools.

[1002] No, no. No. No. You can rent.

[1003] It's in a different school.

[1004] No, no, no, no, no. Listen, you pick the school system.

[1005] So let me give an example.

[1006] John knows exactly what I'm talking about.

[1007] We chose Williamson County.

[1008] Okay?

[1009] There's surrounding counties here in this area, and we heard that Williamson counties were the best schools.

[1010] So we said, all right, we're going to get in Williamson County public schools.

[1011] What we did not lock in was neighborhood and house.

[1012] So what I'm saying is pick, pick what is a really good school system and situation and then rent.

[1013] But let me also say, how old are the kids?

[1014] They're eight and ten.

[1015] Let me tell you, if a year from now you realize, ah, we want to be over here and that's a different school, trust me. Nine and 11 -year -old, they'll be fine, switching schools.

[1016] Or they're going to roll into middle school here pretty quick.

[1017] Right.

[1018] Okay.

[1019] You see what we're talking about, though?

[1020] We're trying to remove the risk that you're worried about.

[1021] Which I admire.

[1022] I think you've got to check in your spirit for a reason.

[1023] And here's the bigger picture.

[1024] This isn't some random principles.

[1025] This is what me and Ken did in our own.

[1026] families.

[1027] It's absolutely true.

[1028] Like, this isn't us just making this up.

[1029] It's, you're moving across the country.

[1030] There's so many variables.

[1031] And there's a lot of anxiousness because you're doing a lot of reading online, emailing, somebody knows somebody who knows somebody who knows about the schools.

[1032] And there's just going to be a difference when you've lived there and gone to the grocery store, experience that Detroit winter.

[1033] You're just going to have a different understanding of, no, no, we want to live over here.

[1034] Right.

[1035] I think in my mind, it's just we want to make it feel like home like settled like we're not dragging our kids from one place to another kind of thing and I and I guess that's where that's about you not your kids because listen if you move into a million dollar house and are you build a million dollar house and the job ends up being a little bit wonky and it gets scary and you've got to take more time and your kids come home every day from their new school um to a mom and a dad who are griping at each other who are anxious, who are not sleeping, who are frustrated about money, that is not a safe, peaceful home.

[1036] Right.

[1037] You and your husband are safe and peaceful.

[1038] He is crushing it.

[1039] You are crushing it.

[1040] Y 'all have half a million dollars in equity.

[1041] Y 'all can rent anywhere, and the room is going to be filled with laughter because you don't owe anybody anything.

[1042] Okay.

[1043] So you what I'm saying?

[1044] Yeah, and you driving the kids here to there and all the craziness of life, it ain't going to make any difference whether you're in a million dollar home or you're renting a place right home is going to in this transition home is going to be our mom and dad getting along and a mom or dad okay right i would get the money out today your husband on board with this or is this just you well he is on board with it um i've been i've been sort of spearheading a lot of this because his job is is very demanding and he he travels a lot he's been in europe quite a bit um and you know I check in with him.

[1045] I let him know what's going on.

[1046] And, you know, we say one way or another and we agree.

[1047] But, you know, he hasn't been as close to this as I have just because of circumstances.

[1048] But the point is, is if you do this, there's no tension.

[1049] If you go, hey, babe, I don't feel good about a million dollar bill right now.

[1050] He's going to be, he's on the same page.

[1051] Right.

[1052] If you say, hey, I found an amazing, silly, 6 ,000 square foot house that we're going to rent for, I don't know, I'm 8 ,000 bucks a month, 10 ,000 bucks a month, and it's going to burn through $60 ,000, but we're still going to have 500 grand after the sell of our house, and we're going to live nice, we're going to live silly while we figure out our new city, our new state, our new way of living.

[1053] Okay.

[1054] And that's an obnoxious number, obviously, but I'm just, I'm trying to go to high.

[1055] That's quite the recommendation.

[1056] But, you know what I'm saying?

[1057] Like, you can still live a nice lifestyle, y 'all are making great money.

[1058] You don't owe anybody anything.

[1059] it's you let's do this instead of you beating your head up against the wall about what about the house what about this and what here's what i want the exercise i want you to do i want you to sit down yourself for just a minute and ask yourself what do i want my home to feel like four months after i've moved there when my husband gets home and my kids walk in the front door what i want this home to feel like laughter warmth silliness fun and then what do we have to do to get capture that feeling.

[1060] That's your homework assignment for the next six months.

[1061] Then you're going to find your big, fancy dream home, and you're going to be all right.

[1062] Great stuff.

[1063] Thanks for the call, Sarah.

[1064] Excited for you guys in this next chapter.

[1065] It's going to be okay, Mama.

[1066] Trust your gut.

[1067] This is The Ramsey Show.

[1068] Thanks for joining us here on the Ramsey Show.

[1069] I'm Ken Coleman.

[1070] Dr. John Deloney joins me. The phone number is AAA 8255 -225 -2 -25.

[1071] I'd love to hear from you.

[1072] Phone lines are hopping today, so let's get back to them.

[1073] Jessica, John, joins us in Valdosta, Georgia.

[1074] Jessica, how can we help?

[1075] Hi, thank you so much for taking my call.

[1076] I'm so excited to talk to you guys.

[1077] Well, we're excited to talk to you.

[1078] What's happening?

[1079] Basically, single mom, older boys.

[1080] I have 22, 20, and 17 -year -old boys.

[1081] I'm in the middle of baby step two, hoping to have the rest of my debt paid off this summer.

[1082] And we'll quickly have my emergency funds and partial mortgage -down payment fund after I sell my home this summer for a move.

[1083] So my youngest son will come with me. But that being said, I'm struggling with my older two boys having to move out of the house.

[1084] And at the same time, my 75 -year -old dad, who also is leaning on me after being a little irresponsible with his retirement money.

[1085] So I'm trying to figure out a balance to start my life fresh, secure my financial future, leave a legacy for my boys, and still balance.

[1086] like older children and a dad who are all depending on me to support them.

[1087] Where's these boys' father?

[1088] He is local, but not so much in the picture.

[1089] So I'm pretty much the sole support and have been for about four years since the divorce.

[1090] So all the boys live with me, and they have since we moved into this house about four years ago.

[1091] So you got a 22, a 20 and a 17, and you're moving away.

[1092] How far away are you moving?

[1093] I'm moving to North Carolina from Georgia, so really excited, and my youngest will come with me and finish school there.

[1094] Sure.

[1095] Is this for a job?

[1096] No, I'm a wonderful man, and we've been doing long distance for about a year and a half, and I'm moving closer to him.

[1097] I work remotely, so my job is very flexible, and I'm able to live at any location and still stay in my job.

[1098] So I'm very, very excited.

[1099] What are 22 and 20 -year -old going to do?

[1100] That's what I'm trying to figure out.

[1101] I have tried to help them the best that I can.

[1102] They have had paid for vehicles that we paid for in cash.

[1103] I've, you know, kept a roof over their head so they can finish college if they choose to do so without having to go into any debt.

[1104] My oldest graduated about 18 months ago with a computer science degree, but he tells me that he can't find a job.

[1105] So he works part -time at a big box store here locally.

[1106] he's never had a full -time job and I have tried to help him find apartment we've done mock budgets like the whole nine yards and there's just no drive there Hey Jessica Jessica you know why I spent my whole career working with this age group You know why?

[1107] Why?

[1108] He doesn't have to Yeah He doesn't have to He's pretty much help with everything He doesn't have to He's got an amazing mom who is still feeling guilty Over this divorce four years ago who's still every day trying to make sure her boys are okay because she's not fully okay yet it's so true i i i got he's he's he's he doesn't have to you know you know why john i want to see if john says on this jessica but drive drive i've been reading something about drive all right what drives us this is healthy or unhealthy and this is in your lane so i'm curious how you think but but when we when kids don't have any need there's nothing to drive for.

[1109] Right.

[1110] You, yeah, you achieve because you have to.

[1111] He needs to just fly.

[1112] I mean, now's the time to kick him out of the nest and watch his drive appear.

[1113] Our friend Henry Cloud, Dr. Henry Cloud says, he would tell you, sounds like your boys need some problems.

[1114] Yes.

[1115] That's what he would say.

[1116] That's great.

[1117] And here's the beautiful thing you have that most parents in your situation don't have.

[1118] You have an end date coming up.

[1119] Most parents have to have this conversation and they're staying in the same house sleeping in the same bed, you get to sit down with each one of your boys and I would do it individually and then I would do it together because individually they're going to go talk to each other and they're going to make up stuff that you didn't really say.

[1120] But I would sit down with each one of them individually and say come March 15th, I'm moving and you're going to be getting your own place.

[1121] I don't even know.

[1122] I know.

[1123] It's time baby bird.

[1124] It's time to fly.

[1125] I'll love you forever.

[1126] I'll always love you.

[1127] But it's going to be your time.

[1128] I've tried to have those conversations, and the response I got from my oldest was, this is why I'm not having kids because parenting doesn't stop just because we turn 18.

[1129] Listen, hold on.

[1130] Why have you given this knucklehead a key to your integrity?

[1131] Yeah.

[1132] You know that's not accurate what he just said.

[1133] Oh, yeah.

[1134] I've given them all I can.

[1135] Yeah, he said that because it worked, and you were like, you're right.

[1136] you can stay right it was so manipulative you know what you should have said of course i don't mean this this way sorry you're amazing but but but you know what we want to say to him collectively is going you know what i think you're actually right you're right you know what you're on your own pal yeah you shouldn't have kids i'll see you at christmas yeah and jessica that's really hard i know i know that's hard but let me flip it around on you um can i can i just be super direct and kind of mean yeah please it is cruel that you are continuing to string this 22 to 23 year old man along yeah he doesn't understand how the world works and every day this goes on it's crueler and crueler and crueler the greatest gift you can give him is that he has to go learn how to pay rent and an electric bill in his car insurance okay that's the gift and actually search for a computer job because tech jobs are everywhere i mean he wouldn't want to spend five minutes with me. I'd have him in a mental pretzel with all of the paths and opportunities.

[1137] I'll give you his cell number 10.

[1138] No, I'll tell you what you can do.

[1139] I tell you can do you can show him this YouTube clip.

[1140] And he can watch it.

[1141] We're talking about him and we're for him.

[1142] But he's, listen, he's just a big old baby.

[1143] And I don't mean like in a mean sense, I literally mean he doesn't know what it's like to suffer, to actually suffer the way you have suffered on his behalf.

[1144] He needs some hardship.

[1145] I love that, Henry.

[1146] Say that Henry Cloud thing one more time.

[1147] He said it sounds like your boys need some problems.

[1148] That's beautiful.

[1149] I could never a million years say it that good.

[1150] And Jessica, you're going to have to open your hands and let the divorce go.

[1151] Actually, that I've really healed from.

[1152] Have you?

[1153] Hold on, have you?

[1154] I really have.

[1155] Then what is the connection with these boys?

[1156] I think because we don't have a large family.

[1157] and everybody's kind of scattered and really I feel like I was the only support for them for a really long time.

[1158] So even when I was married, I feel like I was the majority of the support for them.

[1159] So there's just this part of me that like, you know, if they move on and I haven't protected them well enough, do you see what I'm saying?

[1160] Do you see what I'm saying?

[1161] That they have no one.

[1162] So I guess that's part of my fear.

[1163] And then on the opposite side, then I have my dad who divorced from my mom a few years.

[1164] years ago, again, that family portion is a bit strained.

[1165] And so my dad was close to me. So now he has simultaneously with everything with my boys, gone through about $400 ,000 of retirement money and just called me last week and has nothing.

[1166] He made some poor choices and has taken a second mortgage out on his home.

[1167] And we can call it dating younger women.

[1168] who were about 35 years younger than him, and there's an instance where he called last week where there are $10 ,000 worth of charges on his debit card that were not from him.

[1169] And I'll tell you the same thing.

[1170] I told you that Dr. Cloud would tell him he needs to get some problems.

[1171] He's going to have to make some phone calls.

[1172] This is not your mess to clean it if you can't clean it up.

[1173] Well, he's got a problem.

[1174] He's been playing the role of sugar, Daddy, and you don't have enough sugar.

[1175] Right.

[1176] I mean, that's the facts.

[1177] When I said, Daddy, you know, this can't continue.

[1178] you.

[1179] I really don't know how I can help you.

[1180] I'm trying to, you know, manage things on this end.

[1181] And he said, well, I think we switched roles.

[1182] You're the parent and I'm the child.

[1183] No. No. So he's a grown news.

[1184] I don't accept.

[1185] Yeah.

[1186] Wow.

[1187] I don't accept that role.

[1188] I'm trying to, you know, like I see Dave do the little comparison of baby steps and what about Bob.

[1189] Love the freaking movie.

[1190] Seen in a million times.

[1191] But like there's a part where he's sailing and he's terrified of the water and he's tied to the front of the boat.

[1192] You know what I'm saying.

[1193] And he's like, I'm stealing.

[1194] I'm stealing.

[1195] I remember you.

[1196] I feel like everybody has me tied.

[1197] Like, dude, I want the rope's gone.

[1198] I want to own the boat.

[1199] I want to pull the boat up to the dock that I own and then walk my happy butt and set up that on that on.

[1200] Well, now there's the speech.

[1201] That's it.

[1202] Why don't you just keep saying that to yourself for the next hour?

[1203] You keep tying the knots to the ropes.

[1204] I'm tie them.

[1205] You're the one tying.

[1206] Oh, wow.

[1207] What an interesting situation.

[1208] Wow.

[1209] Well, thanks for the call.

[1210] Good hour.

[1211] Dr. John Deloney.

[1212] Thanks to James Childs, our fearless leader.

[1213] The guys, the mayor.

[1214] band of fellows behind the glass.

[1215] This is The Ramsey Show.

[1216] Live from the headquarters of Ramsey Solutions, this is the Ramsey Show.

[1217] It's where we help you win in your life.

[1218] And we're going to help you win with your money, in your relationships, and at work, AAA 8255 -225 is the phone number.

[1219] I'm Ken Coleman.

[1220] Dr. John Deloney is with me, and we're excited that you are here.

[1221] Let's get right to it.

[1222] Shamula is joining us in Black River Falls, Wisconsin.

[1223] Sounds like a lovely place to be from.

[1224] Shamila, how can we help?

[1225] Um, so I just did my taxes and it kind of got me, um, into looking at my finances.

[1226] Um, so I have 9 ,500 in debt currently just paid off, uh, one in collections.

[1227] And, um, I have a savings of like 9 ,1184.

[1228] That's liquid.

[1229] Um, but I'm just kind of scared to pull the trigger because that's mostly all of my savings.

[1230] what do you mean mostly all is there more than the 91 84 um yes and no um me and my husband saved my daughter's child tax credit over the last two years so she has 7 ,500 why do you think that that's her money not her money yeah because i want to set her up for the greatest future i can then don't owe anybody in any money how about fix her in your money first.

[1231] But then I'd still have that in my account if I paid off our debt.

[1232] Okay, let's just run the numbers.

[1233] You got 9 ,500 in debt.

[1234] You got a savings of 9184.

[1235] So our baby steps would say, baby step one is you take $8 ,000, okay?

[1236] The $9184 now goes down to just $1 ,000.

[1237] You with me?

[1238] Yep.

[1239] So 8184 is going to go over to the $1 ,000.

[1240] 9 ,500, and then we're going to go get the $7 ,000 that you think is your daughter's money, and we're going to take what I'm saying, and we're going to take the money, and we're going to pay that off.

[1241] We're going to pay the $9 ,500 off today, like, when we hang up the phone.

[1242] You're like, listen, you're, you are the actual conversation they have on the airplane.

[1243] Like, the oxygen masks have fallen, and you're trying to get one on your daughter's face while you suffocate.

[1244] Yep.

[1245] And then your child is going to look over and have a mom slumped up against the wall over there, up against the side of the airplane, unable to help anybody.

[1246] The greatest gift you can give your daughter is not an account of $7 ,000 while mom and dad are frantic and walking around the house, anxious all the time because they owe money.

[1247] The greatest gift you can give your daughters to pay all this off, have an emergency fund, and have some peace in your home.

[1248] I feel that I just I have a hard time I guess liquidating all that money But you're not Okay let's walk through this okay The money's yours did you say 7 ,500 for your daughter or 7 ,000 7 ,500 All right so I'm doing really simple mass 166 and some change Is what you've got in savings You've got 9 ,500 in debt Okay you wipe the debt out today you're not liquidating all that cash.

[1249] By my simple math, you're still going to have just a shy under $7 ,000.

[1250] And then are you getting a tax return?

[1251] That 9 ,100 is including the tax return.

[1252] Okay.

[1253] So you have about $7 ,000, give or take, and that becomes your new Baby Step 3 emergency fund.

[1254] That's right.

[1255] And you're just going to start putting some money away.

[1256] In the next six months, you're going to work really hard and get that emergency fund filled up.

[1257] and then you're going to have something you never thought possible, and that is peace in your home.

[1258] You're going to be able to sleep all night.

[1259] You have a false narrative.

[1260] There's no liquidating.

[1261] You're actually by our baby steps, which has helped millions of people.

[1262] This isn't John and I's opinion here.

[1263] You're actually going to be debt -free, and you're still going to have more than the $1 ,000 emergency fund.

[1264] What?

[1265] Except for a mortgage.

[1266] Yes.

[1267] But the point is, you're now moving into baby steps.

[1268] three and you're on your way to a three to six month emergency fund.

[1269] What is that number?

[1270] I'm just curious.

[1271] What's a three month emergency fund for you, all expenses?

[1272] 20 ,000 right now.

[1273] We live very minimal.

[1274] Great.

[1275] So you are on your way.

[1276] And now, watch this.

[1277] So let's just play with this.

[1278] What would you say it would take you to get to 20 ,000 if we're starting with about six, six or seven?

[1279] How long before you got to the $20 ,000 emergency fund number?

[1280] with no debt it would be fairly easy i know how long i'm i'm walking you through something here how long you think it'll take i don't know a few years a couple a couple years a couple of years to save $13 ,000 well yeah we still live all right let's still play that out our mortgage okay that's fine so let's just say that but there's no increased income here there's no second or third job, right?

[1281] So you could actually get there sooner than that.

[1282] Do you follow my reasoning?

[1283] Yes.

[1284] Okay.

[1285] Let's just say you did it in a year and a half for the sake of conversation.

[1286] That's a year and a half from now.

[1287] You're now into Baby Step 4, which is saving 15%.

[1288] And you should be able to do that of your income towards retirement.

[1289] Baby Step 5 is saving for your daughter with a 529 education plan as an example.

[1290] You're going to be fine.

[1291] She's going to be fine.

[1292] You're going to play catch up really quick.

[1293] Do you understand that path?

[1294] Yeah.

[1295] Do you believe it's possible?

[1296] Yeah.

[1297] I don't know.

[1298] John?

[1299] What's your hang up?

[1300] I feel like you get off the phone and you're going to go, nah, I'm not doing any of this.

[1301] And you're going to turn the TV on, throw your feet up, grab a beer, and just call it a day.

[1302] I thought the same thing.

[1303] My problem is it's not just me. So my husband kind of, he doesn't want to leave.

[1304] He feels like it's leaving us short.

[1305] You've already spent the money that you owe.

[1306] That's what I've said, but...

[1307] You're already short $9 ,500.

[1308] And the heavens opened up, otherwise known as tax return in the federal government, to hand you a check, you gave you your money back, and you can wipe all this stuff out, clean it up.

[1309] Within the next two months, almost.

[1310] No, the next, like, 30 months.

[1311] minutes.

[1312] Well, minus the 300.

[1313] Well, if I took out of yes, Gretchen's account, yes.

[1314] It's not Gretchen's account.

[1315] Listen, if the government wanted to give your kids money, they would send it to your kids.

[1316] They don't.

[1317] This is the tax credit is for parents who have children and they are struggling.

[1318] And that is you.

[1319] It's not her money.

[1320] It's yours.

[1321] How old is Gretchen?

[1322] Two?

[1323] Good God on a stick with a pony.

[1324] Now I'm really upset about it.

[1325] I thought maybe she was 12 and you told her it was her money and you're trying to reconcile that.

[1326] This is absurd.

[1327] She only wants to know where the goldfish are.

[1328] She has one thing in her mind, her next snack.

[1329] And another thing.

[1330] Where to poop?

[1331] Where to poop?

[1332] Not.

[1333] Hey, Ma, where's my $7 ,000 child income?

[1334] Good gracious.

[1335] Get that money and pay.

[1336] Oh, my gosh.

[1337] This section is, this call is brought to you by Preparation H because I've got hemorrhoids right now.

[1338] Folks, that means he has been mentally strained.

[1339] I think those are mental hemorrhoids.

[1340] I think, I hope.

[1341] We'll figure it out during the break.

[1342] We'll let you know when we get back.

[1343] This is the Ramsey show.

[1344] This is the Ramsey show where we help you win with your money in your relationships.

[1345] And at work, AAA 8255 -225.

[1346] I'm Ken Coleman, John Deloney, joins me. And, oh, my gosh, it's that time of year.

[1347] It's that time of year, a lot of indigestion all around America based on taxes, and we understand that.

[1348] And the reason this is the case is because taxes can be really confusing, a little bit scary.

[1349] And so we always want to help you with this issue of taxes.

[1350] Let's unpack a recent question from one of our listeners.

[1351] I want to avoid overpaying taxes each month.

[1352] What do I need to change with my paycheck?

[1353] A fun question.

[1354] Two simple ways to figure this out, and the reason this matters is we don't want to give our money, Uncle Sands.

[1355] Sam, we don't want to give our money to Uncle Sam, and then get it back after a full year, right?

[1356] It's kind of an interest -free loan to the government.

[1357] That makes you want to throw up.

[1358] So there's two simple ways to figure this out.

[1359] One, if nothing is changed in your tax situation, take your refund amount or the amount you owed last year, divided by 12.

[1360] That's how much more or less you want taken out of your paycheck each month.

[1361] Two, if your tax situation has changed, use tax software to do a fake tax return.

[1362] It's going to show if you're paying too much or too little, and then you can do that.

[1363] paycheck math then.

[1364] And then third, get with HR to fill out a new W -4 so that you're not over or underpaying on your taxes anymore.

[1365] Now, that's just a quick snapshot.

[1366] If you need help, go to ramsysolutions .com slash tax.

[1367] That's where we're going to find Ramsey Smart Tax, our no -nonsense tax software, very low upfront pricing and zero hidden fees.

[1368] Or you can connect with one of our tax pros who is Ramsey trusted, and they can do it all for you.

[1369] that's ramsysolutions .com slash tax ramsysolutions .com slash tax all right let's go to midland texas jessica is there jessica how can we help hi yes um how are you guys we're having a blast how are you i'm good so i was calling because i get a lot of anxiety around spending money um around budgeting like i have my planner budgeted all the way through may um and i'm trying to get past that I'm trying to find a balance between saving and doing some things with my kids.

[1370] I get guilty about telling them no. And I feel like I'm constantly trying to balance that.

[1371] So I didn't know if you guys had any advice for me. Yeah.

[1372] So what is, I like to look at anxiety as an alarm, okay?

[1373] This is a way your body trying to get your attention that you're not okay.

[1374] Things aren't safe.

[1375] So when you're about to spend money, what's your body trying to tell you?

[1376] Is it trying to tell you, hey, you remember how bad it was when we were young when we were seven, eight, and mom and dad had nothing.

[1377] Dad left.

[1378] Mom, we were broke and don't spend money.

[1379] Is it trying to tell you, hey, you've just got a steady diet of evil, end of times news stories for the last six years.

[1380] What's it trying to tell you?

[1381] Honestly, I went through a divorce and I felt like he was always like spending money and I could never, like we weren't on the same.

[1382] page money -wise.

[1383] And so every time that I would try to save, I would check the bank account and there was something spent.

[1384] And I felt like I had no major control, but I'm also a people pleaser, so I never really, like, told him it bothered me. So I feel like now that I have, like, full control of my bank account, I don't know.

[1385] I feel like I'm scared to go back into the situation where we were living paycheck to paycheck, and I don't want to go back there.

[1386] So the greatest gift you can give your body is some confidence.

[1387] And we don't get confidence by just shouting things out in the rain.

[1388] We get confidence by doing things, right?

[1389] So do you have a budget?

[1390] I do.

[1391] My budget is about, I spend about maybe 2 ,900 a month max on bills.

[1392] Okay.

[1393] But how much do you bring in?

[1394] I bring in, I bring in about 20, 50 every two weeks.

[1395] Okay.

[1396] Okay.

[1397] So 5 ,600 a month, 5 ,700 a month?

[1398] Yeah.

[1399] Yeah, my salary is 75 ,000 yearly.

[1400] Okay.

[1401] So you've got your expenses all the way down to $2 ,900.

[1402] And so you've got thousands of dollars left over every month.

[1403] Do you have an emergency fund?

[1404] I'm working on baby step three right now.

[1405] I just paid off my car January 31st.

[1406] That was my last bit.

[1407] Congratulations.

[1408] Thank you.

[1409] But I just feel like my kids, they go with their dad and then they come back.

[1410] and they brag about everything, like, that they did.

[1411] That has nothing to do with money.

[1412] That's not about money.

[1413] That's about kids being kids.

[1414] And you trying to get some sort of, like, your kids are your scorecard.

[1415] And if they're happy, then you got an A. And if they're mad at you, then you have a D. And if dad is doing better than you got an F, right?

[1416] You're not competing with him.

[1417] I hear all over the country when I talk to parents in your situation where, one parent feels like I'm having to reestablish humanity after my kid goes to see their dad every other weekend because all they do is eat ice cream and twinkies and go to movies and stay up all night and play arcade games and then they have to come home and go to school and I'm the bad parent.

[1418] Exactly.

[1419] Here's what that makes you.

[1420] The adult, the good parent.

[1421] Your job right now is not for your kids to just think, I'm having so much fun.

[1422] Your job is to make sure that you're raising great adults and it's going to be hard because it sounds like they have a dad that's not participating.

[1423] Yeah.

[1424] So I'm not going to hook my self -worth to how my kids, quote -unquote, feel on any given day.

[1425] Over an arc?

[1426] Yeah.

[1427] If they're miserable, then I'm going to dig into that.

[1428] But your anxiety is going to be around.

[1429] Is our home financially secure?

[1430] Yeah.

[1431] Am I good mom?

[1432] Yeah.

[1433] Am I working hard?

[1434] Do they have rent, food?

[1435] Yeah.

[1436] And do we have some money set aside so that we go out once a week together?

[1437] do we have money where we go play with a friend once a month you see what I'm saying it's both and I don't I don't do that I don't have any kind of fun in the budget I'm trying to balance like do you have any kind of fun period do you have friends are you doing this all by yourself um I have I have my mom she helps me that's not what I said do you have any friends not not really that's your new adventure that's right and I don't really do anything that's your new adventure that's your new adventure you're lonely as lonely can be and Jessica just I want to jump in really fast and say you cannot give what you don't have and you're running on empty fair fair are we right am I right yeah yeah so you got to take care of you and and spending on you and spending on what you believe is right in this season like the to take the other side of fear is fear is is very very real but the way we get through fear is going what is fear telling me is fear right Is it true?

[1438] Is it true?

[1439] If it's true, we need to adjust.

[1440] If I'm near the ledge of a cliff and I'm afraid I'm going to fall over, fear's telling me the truth I need to back up.

[1441] But if I'm afraid that I'm going to fail, if I take a new job, when there's no evidence that I'm going to fail, then I'm being lied to and I'm holding myself back.

[1442] And I think in this situation, you have got to stop holding yourself back because now it's you and you do make good decisions and you're not going to do something stupid.

[1443] Isn't that true?

[1444] yes you're not going to spend stupid and willy -nilly and irresponsibly and here's your new homework assignment once a week for the next three months i want you to take a couple of friends out from work from your local church from your neighborhood and y 'all go over to roses right down the road over there and all i want you to do is get some queso and a big old thing of a dozen tortillas and some chips and if y 'all have margarita people they've got great margaritas there and i want y 'all to sit at roses and just chit -chat.

[1445] I like it.

[1446] I'm told that today's National Margarita Day.

[1447] She should get one tonight.

[1448] Yes.

[1449] How does that sound?

[1450] Just for her.

[1451] No, it sounds doable.

[1452] Okay, here's the word I want you to keep in your head.

[1453] You're not broken.

[1454] There's nothing wrong with you.

[1455] Your body's been through crap.

[1456] I want you to think of this as I have to practice this.

[1457] I'm just practicing.

[1458] I haven't had friends in years.

[1459] I've been trying to hold together a marriage that didn't hold together.

[1460] I've been trying to figure out how to survive.

[1461] because I had a husband who spent money, like a child.

[1462] I'm trying to figure out how to raise healthy kids by myself.

[1463] And so I'm going to have to practice laughter.

[1464] I'm going to have to practice having fun.

[1465] I'm going to practice hanging out with girlfriends and just being silly again.

[1466] And the greatest gift you can give your kids is to go let Mama be well so that you can anchor back in.

[1467] And after they're all twinkied and video gameed up and they come back to your home, you can, here we go again, right?

[1468] Here we go again.

[1469] I'm proud of you.

[1470] I'm proud of you.

[1471] It's hard, but you're on the right path.

[1472] Hang on the line.

[1473] We're going to send you a year subscription for every dollar, the premium version, and we're going to send you the FPU Baby Step videos.

[1474] I want you to watch them all, and we're going to put you on a path to success.

[1475] Hang on.

[1476] All right, hang on the line.

[1477] This is The Ramsey Show.

[1478] Welcome back to The Ramsey Show.

[1479] I'm Ken Coleman.

[1480] Dr. John Deloney is with me as well.

[1481] Triple -8 -25 -2 -2 -5 is the phone number.

[1482] Jesse is now joining us.

[1483] in Allentown, Pennsylvania.

[1484] Jesse, how can we help?

[1485] Yes.

[1486] So in the last two years, I've gained over $100 ,000 in equity on a property that I bought back in 2021.

[1487] And I kind of face an issue that a lot of people who bought a house back then, we got a really low interest rate.

[1488] I got around 3%.

[1489] And I don't necessarily ever want to sell this property, but I do want to take this equity and buy another property.

[1490] But I really don't know how to go about it.

[1491] And I'm also co -signed with my parent on this property.

[1492] So it's, yeah, so it was a situation where I knew where the market was going, and I know where the market's going to go the next couple of years.

[1493] You do?

[1494] Whoa, whoa.

[1495] Can we ask you a couple questions?

[1496] How is it that you've got your crystal ball?

[1497] I think that my dad, my dad was right about 2007, and he kind of taught me a lot about how the markets are working.

[1498] And unfortunately, the only way the market's going to fix right now is the baby boomer generation has to get out of their homes.

[1499] Okay, that's one theory.

[1500] What do you mean?

[1501] They have to get out of their home.

[1502] By dying?

[1503] No, sell.

[1504] Yeah, or they need facilities, but again, I'm a health care worker.

[1505] And the biggest issue in America is these people don't have anywhere to go beyond their homes.

[1506] But you said they need to get out of their homes.

[1507] Yeah, either whether they go into a long -term care facility or whether they pass away.

[1508] And that is kind of like the big issue is a lot of Americans are still like in that boomer generation.

[1509] that take up a lot of the homes, I would say majority of my generation, which I'm in my 20s.

[1510] They're not taking up a lot of homes, brother.

[1511] They bought them.

[1512] They own them.

[1513] It's their house.

[1514] Yeah, yeah.

[1515] They own them.

[1516] But your generation can build some new ones.

[1517] That'd be cool.

[1518] Yeah, and that's what I'm trying.

[1519] That's actually like my question is what I'm trying to do because the problem is it's so expensive to build houses.

[1520] And I've looked at like properties and like the value of property now compared to what it was back then.

[1521] And it's costing a lot more money now to build a house and ever.

[1522] So what's your specific question?

[1523] So my specific question is I am trying to take a, I want to get a heat lock.

[1524] Don't do what you're about to do.

[1525] You're not going to listen to us and so I know that, but I'm just telling you if you and I were having a drink and you were one of my best friends, I would say, do not do what you're about to do.

[1526] Period.

[1527] Is it a bad, do you think it's a bad time to do a heat lock or is it?

[1528] I think it's never a good idea to put your house on the block to put land or a home on the block i don't give seven craps what the interest rate is i don't care how much equity you have in it you're you're betting into an unknown future and by the way um i was you 15 years ago and i have to say these words out loud on a regular basis to remind myself i was wrong i thought i was smarter than i actually was and i thought i'd figured all this stuff out i didn't know anything about black swan events i didn't know anything about pricing and supply and demand i watched a lot of tv and read a lot of internet right and so i thought i knew all these stuff so i started making these things i'm going to make this move and move that over that move and what and here's what i did i dug a hole that it took me and my family a long time to get out of and so what i'm telling you is the smartest move moving forward is to be really grateful that you got to get right really grateful that your house appreciated.

[1529] I think it's a terrible idea to co -sign with your parents because they're still have some sort of oversight with you.

[1530] No, we're partners.

[1531] You're not.

[1532] They're mom and dad, right?

[1533] And I would sit until I've got cash to buy my next place.

[1534] But you're going to get in the equity game where you're getting a little bit equity and then pulling it out so you can put a down payment on this place and get a little equity there.

[1535] She can pull a down payment on that.

[1536] And it's going to be fine until you turn out like Dave Ramsey and the whole thing comes down on your head.

[1537] They call the note and you go bankrupt.

[1538] That's the end game.

[1539] The only way this works out for you is if you watch a ton of Instagram reels.

[1540] That's it.

[1541] That's it.

[1542] Yeah, because all that does is give you dopamine to make this decision.

[1543] That's it.

[1544] You are playing a slot machine and Vegas always wins.

[1545] Yeah.

[1546] So again, so you think it's better to just look into like maybe selling the house down the line.

[1547] Like, because again, like, obviously I'm going to count my blessings and stay where I am and kind of wait for the market to kind of...

[1548] Why do you want to move?

[1549] Well, because...

[1550] Hey, hold on, this correction, bro, I put an offer on a house yesterday, and I got outbid.

[1551] All these people, like, it's going to correct, it's going to correct.

[1552] There is a shortage.

[1553] It's the lowest number of houses on the market.

[1554] If you simply know supply and demand, there's very few Mickey Minow rookie cards.

[1555] That's why they're worth so much.

[1556] they're going to have to build a whole bunch of houses they're going to have to increase supply okay you're just playing with basic economics and bro I want it to reset I want all housing prices to cut in half so I can get a nicer house for me and my family it's not going to happen it's not going to happen and so if you like your house live in your house if you want to move from your house and you have the money sell your home and then buy something that you can buy mm -hmm does that make sense no no that makes that makes perfect sense.

[1557] The thing is for me, like, I look at, like, trying to get into more assets, and I understand, like, yes, like, I don't want to rush out of this house, but I'm trying to use this current asset as a rental property and then buy a second property.

[1558] I basically took my equity to buy a long -term home and use my current property as a rental property because of my area and what I've studied economics of what's going on in my area right now.

[1559] But, again, you just listened to everything, well, you heard everything, John said, and and then you came back with the same formula.

[1560] So.

[1561] Yeah, do what you're going to do, brother.

[1562] We still love you.

[1563] Yeah.

[1564] We've made our position clear.

[1565] I mean, you've watched a lot of Instagram reels about this.

[1566] That's why you laughed.

[1567] I mean, you literally hit him right between the eyes there.

[1568] He laughed because he's like, yeah.

[1569] And you should probably keep watching those.

[1570] Well, it's going to.

[1571] No, I'm just saying.

[1572] We told you what we would do, which is not this.

[1573] He's bought into, and he does see the future.

[1574] It does see the future.

[1575] I feel like that's the X factor.

[1576] It breaks my heart because I was him.

[1577] I know.

[1578] I was him.

[1579] But again, I mean, this gets back to what you studied.

[1580] Yeah.

[1581] There is reason and then there is emotion.

[1582] And the way those two things interact with each other sometimes, it's a very interesting mix.

[1583] And there is a constant, if you get on the wrong algorithm, there's a constant stream of people telling you, you're behind, you're missing out, you're behind, you're missing out.

[1584] You've got to go, got to, got to, got to, got to get it.

[1585] And you just end up going, okay, I got to do this.

[1586] got to take this asset and move it over to there and move it.

[1587] Here's the thing.

[1588] My house, right now, if I go get a quote -unquote appraisal, they're going to give me a number that they think the house is worth.

[1589] You know what that is?

[1590] It's a guess.

[1591] It's a guess.

[1592] It's a guess.

[1593] It's not money.

[1594] It's not cash.

[1595] It's not an asset.

[1596] It is an estimation.

[1597] And at the end of the day, what somebody actually pays me hands me money for and I shake hands with them and hand them the keys, that's what that house is worth.

[1598] And so I'm not going to make any moves on estimations, on guesses, on approximations.

[1599] I'm not going to borrow against it.

[1600] I'm not going to put my house on the market for it.

[1601] That's a recipe for disaster.

[1602] Yeah.

[1603] And to follow that up, let's just look at the number.

[1604] So he's going, well, I want to use this house as a rental and then blah, blah, blah, blah.

[1605] Okay, run the numbers.

[1606] Run the numbers.

[1607] What are you going to make?

[1608] What are you going to make on the actual rent itself?

[1609] So you have a mortgage payment that you owe the bank and you're going to charge the renters plus, plus.

[1610] So whatever there is.

[1611] So just run the numbers.

[1612] You make it $1 ,000 a month?

[1613] That's not happening very often.

[1614] $500 a month?

[1615] Let's just say $500 a month.

[1616] That's $6 ,000 a year, but that's before there's any kind of, I got to fix the gutters, I got to fix the HVAC, because as the landlord.

[1617] The lawn care.

[1618] There's all this risk.

[1619] My tennis flushed to whatever down the toilet.

[1620] Yeah, there's risk associated with this.

[1621] For what?

[1622] How much money are you actually clearing?

[1623] Well, I've got the asset.

[1624] Then sell it.

[1625] Then sell it.

[1626] Then flip.

[1627] Or if it's an actual cash asset and you're going to sit on it for the next 15 or 20 years, knock your lights out.

[1628] Well, that's different.

[1629] do that all day long.

[1630] That's right.

[1631] But that's yours.

[1632] It's an actual tangible asset.

[1633] And there's a risk there.

[1634] Right.

[1635] We've eliminated the risk or just about completely.

[1636] Because I own it.

[1637] That's right.

[1638] I can flip it any, I can sell it at any time.

[1639] So it's a game of, I think I can time it right.

[1640] By the way, no disrespect to Jesse or anybody.

[1641] I listen to, you know me. I'm like an old man. I listen to the news and read the news every day.

[1642] And you've got friends in the market.

[1643] Guess what?

[1644] Nobody knows.

[1645] Nobody knows what the real estate markets.

[1646] It's going to be six months from now.

[1647] Nobody.

[1648] Everyone was waiting two months ago for the rates to drop.

[1649] Last month for the race to drop.

[1650] They didn't.

[1651] Nobody knows what the stock market's going to do.

[1652] It's just, so listen.

[1653] Live your life.

[1654] Here's what we do know.

[1655] We know solid financial principles work.

[1656] That's what we know.

[1657] And everything else, well, it's how much risk are you willing to take on?

[1658] So hang in there with us, folks.

[1659] This has worked for over three decades.

[1660] And we want it to work for you.

[1661] This is The Ramsey Show.

[1662] This is The Ramsey Show.

[1663] I'm Ken Coleman.

[1664] and Dr. John Deloney is in studio with me as well this hour.

[1665] Our scripture of the day comes from Psalm 37, 23, and 24.

[1666] The Lord makes firm the steps of the one who delights in him.

[1667] Though he may stumble, he will not fall, or the Lord upholds him with his hand.

[1668] And our quote today from Bono, as a rock star, I have two instincts.

[1669] I want to have fun and I want to change the world.

[1670] I have a chance to do both.

[1671] I think it's pretty interesting when you get to a point in your life, when you can start a phrase with a sentence with as a rock star like that's pretty cool don't you think and like I didn't think that was pretentious at all because he is in fact because he's Bono a rock star right yeah you know as a rock star as a middling YouTuber Ken I believe that yeah nobody quotes me uh as a middle age podcaster as a guy I have failing radio show just kidding James I believe that uh so crazy that's just a hysterical.

[1672] Wow.

[1673] Unbelievable.

[1674] I'm still shook from that last call.

[1675] We got to talk to a real -life fortune teller.

[1676] Oh, no. He should put out an e -book.

[1677] Because if you can time the market, I feel like you're on to something.

[1678] You like that one.

[1679] That's a genuine laugh right there.

[1680] That's funny, because there's a whole industry of e -book people putting out e -books on how to teach other people how to buy no no down real estate and you'll learn it by buying my e -book and then I buy that e -book and I learn how to make an e -book about writing e -books for no down real it's just this loop well we live in a world where you can be an expert without being an expert it's grown -up tupperware sales yeah right it's grown up essential oil pyramid schemes I'm going to show you how to do it uh question have you done it nope but I got seven steps that you can use my course very interesting all right let's go to Brooke in Oklahoma City Oklahoma geez Louise on a stick Brooke, what's going on?

[1681] Hi, guys.

[1682] Thank you so much for having me on the show.

[1683] Sorry, I'm having a temper tantrum, Brooke, so I'm going to get better here.

[1684] Go ahead.

[1685] No problem.

[1686] Thank you so much for having me on the show.

[1687] I appreciate you guys showing up every day and doing the work that you're doing.

[1688] Well, thank you for calling.

[1689] What's going on with you today?

[1690] Hey, we've got a little extra unexpected money that came from the sale of a couple of calves that we had.

[1691] obviously that's not coming to us being taxed, so we'll have to pay taxes on that at the end of this year.

[1692] Meanwhile, we are in baby step number two.

[1693] I've got the IRS debt that we are trying to punch out.

[1694] It's totaling $8 ,700 right now.

[1695] The unexpected money totaled just under $3 ,000, so it was going to be $1 ,000.

[1696] I either put in savings, but I'm wondering if I don't just take that money and pay the IRS now and then withhold $100 bucks a month throughout the rest of the year for my check to make up for that.

[1697] I like the idea of creating that habit of when we get that money that's not taxed of putting it aside, but I also want the IRS out of my life now.

[1698] So I wanted to get your guys' opinion.

[1699] I'm going to go with IRS out of my life now.

[1700] Okay.

[1701] And I'm going to go with, you're asking you, are you married?

[1702] I am, yes.

[1703] You're asking you and your husband to do something.

[1704] y 'all have never done before, which is stick to an actual budget and actually save money.

[1705] Yes.

[1706] And so I'm going to challenge you.

[1707] I don't believe that you can do this.

[1708] I actually do, but I'm just doing this for theatrical, for theatrics.

[1709] I don't believe you can do it.

[1710] So if you do, in six months, if you will send me a direct message on Instagram that you have an account with six times $100 in it, hundred bucks in it.

[1711] I'm going to send you any of my books for free.

[1712] How about that?

[1713] Okay.

[1714] That's my challenge to you.

[1715] Okay.

[1716] I'm like Ken, get the IRS out of your life away from you as far as humanly possible, but you're not fine to pay Paul on this one.

[1717] Yeah.

[1718] Just take care of that first.

[1719] That's kind of where I was and I really thought, well, this is the more urgent where I can also just pay that later.

[1720] But I mean, we do have other debts in baby step too, but this one obviously Dave says IRS goes to the top of the list.

[1721] And that's sure enough what we wanted to do.

[1722] But this is the exact same thing that got you in this mindset.

[1723] I mean, in this predicament, not mindset, in this predicament, which is, oh, we'll just pay that later.

[1724] Yes, absolutely.

[1725] And now is later.

[1726] And I'll tell you what, you never want to go with the later option with the IRS.

[1727] They just don't mess around.

[1728] Absolutely.

[1729] Is there a chance you could go to a local credit union and get an $8 ,000 line of credit and pay this thing off?

[1730] we actually have 6 ,300 ready to go we've paid 9 ,600, we have 63 more 100 to send and that includes the 2000 I just wasn't sure about that extra thousand whether I should hold that back to pay next year or just go ahead and send it now so we'll have almost all of it ready to go this month okay when you say next year you're just this is you guys are 1099 income this would be 1099 income, yes.

[1731] We're W -2 employees, but we do ranching on the side.

[1732] Right.

[1733] So this is just a couple of calves we had that went to sale barn.

[1734] Right.

[1735] Oh, calves.

[1736] Caves.

[1737] And so you just didn't hold the money back.

[1738] Right, yes.

[1739] It's $10 .99 income for the calves.

[1740] And so what I'm saying is in our W -2 jobs, I could just take that extra hundred out each month to make up the thousand that we would owe at the end of the year.

[1741] Right.

[1742] I see.

[1743] You just have to, you have to, you have to, I promise she'll do it now and send it direct to the IRS.

[1744] That's right.

[1745] I run payroll, so I set it up myself.

[1746] Yeah.

[1747] Do you have a, do you work with a tax pro, one of our Ramsey tax pros?

[1748] We are not with a Ramsey tax pro.

[1749] We have a local accountant that's been helping us get caught up.

[1750] We had some businesses and we sold them and got a little behind there.

[1751] Okay.

[1752] But we're trying to.

[1753] Whether it's your local accountant or not, you need some accountability there and a pro there that's helping you navigate this stuff.

[1754] stuff too.

[1755] So just to give you personal experience, I'm W -2 at Ramsey.

[1756] My wife, she works when she wants to.

[1757] She has a lot of fun stuff that she does.

[1758] And so she brings in a decent little amount of 1099 income every year.

[1759] And so we've got our tax pro that we're going to get clued into all that.

[1760] We just changed over to a great guy.

[1761] And so we're going to be getting ahead of that.

[1762] And having a pro walk through, here's what you need to be doing.

[1763] I just really recommend that.

[1764] I love accountants, but I love tax pros, and I think there's a difference, and I just would get them involved, and if they're really good, they're going to check in with you two, three times a year, and you won't get in this mess.

[1765] Awesome.

[1766] Thank you.

[1767] I appreciate that.

[1768] I'll definitely look into them.

[1769] All right.

[1770] You got the DM book challenge by Dr. John Deloney coming your way, so it's pretty good.

[1771] I would tell her to slide in, but that comes to find out that means something differently than I thought.

[1772] Now, you kind of revealed your technique.

[1773] It was kind of interesting.

[1774] You were real serious.

[1775] I believed it.

[1776] Like if you would have put a strong bet in a poker hand, I'd been like, oh, he's got to set a card.

[1777] You were like, I don't think you're going to do it.

[1778] And then you went, you immediately gave it?

[1779] Yeah, I think they could.

[1780] I think they could.

[1781] I think they can.

[1782] All right.

[1783] So you think that you, what are the chances that she hits you with a DM?

[1784] I think 95 % chance.

[1785] All right.

[1786] I think you take an Oklahomaan, which is just like a super northern Texan, I think they respond to challenge quite well.

[1787] Now, can you say that?

[1788] No. Actually, because growing up in Texas is.

[1789] They take great offense to that.

[1790] An Oklahomaan.

[1791] Oh, no, Oklahomaans.

[1792] They wouldn't take offense to being called a North Texan?

[1793] No, that's like the greatest compliment you can give them.

[1794] I think he's messing with me. There's the Red River rivalry in football.

[1795] They don't like each other.

[1796] And Oklahoma and Texas.

[1797] But it's, it's, it's, I'm not, I'm calling, I don't believe that on a, did you like the PG version of that?

[1798] I kind of PG'd that up.

[1799] I just don't believe that people from, uh, Oklahoma would take kindly to being called North Texans.

[1800] You're going to hold to this?

[1801] Well, as a Texan, I think I'm bestowing, like, quite the gift.

[1802] This I understand.

[1803] As someone who's not an Oklahoma, and I can see possibly they take offense.

[1804] I think they probably would.

[1805] But in Texas, Oklahoma is called Southern Canada.

[1806] So anything above the Red River is another country, essentially.

[1807] All right.

[1808] So, but all I have to say is, I believe in Oklahomans that they can respond challenge.

[1809] And so we laid down the gauntlet.

[1810] We'll see if Brooke can come up with $600 over the next six months.

[1811] I think she's going to do it.

[1812] Make it happen.

[1813] I think she's going to do it.

[1814] And can we just say this?

[1815] I thought she was talking about cabs.

[1816] C -A -B -S.

[1817] I'm going to tell you, I thought the same thing.

[1818] In fact, I heard cabs and I, but I wasn't sure what the cabs were, so I didn't follow up.

[1819] Yeah, I kind of wimped out.

[1820] Come to find out they were baby cows.

[1821] Which I, if I'd heard that earlier, I would have made the noise.

[1822] Much to James's disappointment.

[1823] He does not like when I do my own sound effects, but I've gotten away with it so far.

[1824] Hey, good show, Dr. John Deloney, James Childs, our fearless leader and his band of merry men behind the glass.

[1825] Thank you guys.

[1826] And you, America, this is The Ramsey Show.

[1827] Hey, guys, I'm Rachel.

[1828] And I'm George.

[1829] And you've probably heard our voices before on The Ramsey Show.

[1830] And do we have a surprise for you?

[1831] Yep.

[1832] We have our very own show, Smart Money, Happy Hour, where we talk about pop culture, current events, and of course money.

[1833] George, it's a great show.

[1834] And what else do we talk about?

[1835] So much, Rachel.

[1836] Not enough.

[1837] And yet too much.

[1838] We talk about guilt tipping because tipping is out of control and I won't stand for it anymore, which is why I'm sitting.

[1839] I'm glad you're taking such a stand.

[1840] And we also talk about something else I'm passionate about Disney adults.

[1841] Why is it a thing?

[1842] Listen, some adults still find the magic.

[1843] Sure.

[1844] We also talk about toxic money traits and girl math.

[1845] And if you don't know what those are, you have to listen to the podcast.

[1846] Yeah, there's a lot there, you guys.

[1847] It's pretty fun.

[1848] We keep you relevant, is what I'm trying to say.

[1849] We help you out.

[1850] So pull up a chair to the happy hour.

[1851] You wish your friends we're having.

[1852] We promise you won't regret it.

[1853] And if you don't have friends, we'll be your friends.

[1854] We will.

[1855] We're great friends.

[1856] So make sure to check it out on Apple, Spotify, YouTube, or the Ramsey Network app.