The Ramsey Show XX
[0] the headquarters of Ramsey Solutions, it's the Ramsey Show, where we help people build wealth, do work that they love, and create amazing relationships.
[1] I'm George Campbell, joined by my good friend Ken Coleman.
[2] This is your show, America.
[3] So make it happen.
[4] Give us a call at AAA 825 -5 -225, and we'll help you take the right next step for your money, your work, and your life.
[5] And my friend Ken here, he is the expert on helping you get to that work that You love helping you get that bigger shovel, help you work on that greatest wealth -building tool, your income.
[6] So please call in with your questions for Ken as well.
[7] Absolutely.
[8] And we love being together.
[9] People, a lot of chatter out there on social media.
[10] So much chatter.
[11] A lot of chatter.
[12] We really do like each other.
[13] We have some fun little jokes here and there.
[14] And we're going to have fun today.
[15] You said to me right before we started, let's have a little extra fun today.
[16] That was my encouragement to you since you're a fuddy -duddy normally.
[17] Your words.
[18] It's a great word.
[19] The youngsters don't know what that means.
[20] But we're going to help some people today.
[21] So let's get to it.
[22] Fun and practical advice.
[23] That's what we're all about.
[24] All right, let's do it.
[25] Miles joins us up first in Nashville, Tennessee, right down the road.
[26] Miles, how can we help you today?
[27] Hi, yes.
[28] Thanks for taking my call.
[29] Question.
[30] I was in an accident on Thanksgiving.
[31] Oh, no. You okay?
[32] And unfortunately, yeah, I'm okay now.
[33] So the vehicle is a total loss, and at the moment, I don't have the funds to purchase another car.
[34] Now, I am currently using a family member's car just to get back and forth to work, but I don't want to use that for an excessive amount of time.
[35] What suggestions do you have that you recommend before I proceed?
[36] Well, what the heck happened with insurance?
[37] So, yeah, so the insurance paid out on the Gap insurance.
[38] essentially it paid out what I owed on the vehicle.
[39] So I broke even.
[40] Now I'm starting fresh all over again with another vehicle.
[41] What kind of income are you making?
[42] I do about 45 a month.
[43] Is that before tax or after tax?
[44] Before tax.
[45] I'm sorry.
[46] Okay.
[47] How quickly can you save up money for a car?
[48] Be realistic.
[49] And what's that number?
[50] Honestly, I couldn't really tell you.
[51] And the reason being is because the vehicle was part of the biggest expense that I had.
[52] So I haven't even gone a full month of seeing what my income would look like without that – What was your car payment?
[53] So the car itself was about 270, but then because of the type of vehicle I had, I paid 400 bucks a month in insurance.
[54] So I was like, I guess, collective right at 600 a month.
[55] So 270 plus to four.
[56] So you're talking, you've freed up 670 a month plus gas, plus maintenance and repairs.
[57] And so we can at least put that towards the savings on top of whatever margin we can find with this income.
[58] Do you have any other debt?
[59] I've got some older debts and personal loans and credit cards that I've been actively paying down.
[60] Now I'm probably right at 10 total.
[61] 10 ,000 in debt still.
[62] Correct.
[63] And I'm assuming nothing in the bank, paycheck to pay.
[64] paycheck right now?
[65] Got about maybe 1 ,500 in savings at the moment.
[66] Okay, that's a start.
[67] So let's say you've got this $1 ,000 starter.
[68] We're Mnesee Fund.
[69] You have $500 left over, and now we're going to get to the point where our one singular goal, we're going to make minimum payments on the rest of our debts.
[70] Right now, we've got to get you some transportation.
[71] And that might mean you're going to go down to your mechanic and go, hey, guys, I'm looking for the most beater of the beater cars that you got, someone gave it to you for parts and you guys are trying to just fix it up and sell it.
[72] Do you have anything like that hanging around?
[73] I'd be calling every mechanic and dealership, you know, independent dealership around to see what they have and what the lowest price car is.
[74] And you might find one for three, four grand.
[75] Okay.
[76] And you could save up three, four grand in a few months if you freed up that payment, plus the margin you have from your income.
[77] And get busy.
[78] Payments.
[79] Get busy.
[80] Selling stuff.
[81] Get busy.
[82] Making more money.
[83] Like right now, you're trying to come up with $12.
[84] 20, 30 hours a week of hourly work to get this car funded.
[85] I'm pulling up, you know, I love to do this.
[86] This is my favorite thing to do.
[87] Use cars for sale in Nashville under 5 ,000.
[88] Well, I tell you this, Miles, I have confidence because I helped a Ramsey team member here get a car for two grand not long ago.
[89] Right.
[90] And it's not a flashy vehicle, but it's running.
[91] It's still a life.
[92] What were you driving before?
[93] A 2018 sonata.
[94] All right.
[95] And how long can you drive this family vehicle?
[96] Um, they're, they're patient, and I can tell they're patient, but I kind of want to get it back to them relatively quick.
[97] What does that mean?
[98] Would they be okay for four months if they didn't have this vehicle?
[99] I probably say maybe two months, max.
[100] Okay.
[101] Well, I would get real good clarity with them, say, hey, I'm trying to save up.
[102] Here's my goal.
[103] My goal is to get you this car back in a few months.
[104] What's the urgency?
[105] When do you guys need this back by?
[106] Let's get some real.
[107] Yeah, get clear.
[108] I almost wonder if they wouldn't be willing to have you pay for the car a little bit.
[109] What's this car worth?
[110] Could you buy it from them, or is it too nice of a vehicle for you right now?
[111] So we talked about that as well about the opportunity in me buying it.
[112] They declined on that because they want to keep it as a backup vehicle in case theirs goes down.
[113] So they only have one vehicle as well.
[114] What's your commute like as far as work goes?
[115] 10 miles, so not far at all.
[116] Like I said, worst -case scenario, I could walk if I have to, but I know it's going to be getting pretty cold here pretty soon.
[117] Sure.
[118] But you could also, you know, if you had to Uber for a few weeks, that's not going to be a deal breaker.
[119] No, no Uber's came to worse.
[120] I'd rather even walk than Uber.
[121] Have you walked 10 miles, Ken?
[122] Have I walked it?
[123] I've never walked 10 miles.
[124] There we go.
[125] I'm just saying.
[126] Walking 10 miles in 28 degrees.
[127] I'm making up point.
[128] Sure.
[129] It's the principle.
[130] He doesn't need to be spending Uber money to get to work.
[131] I'm just saying worst case, if he loses this vehicle, it's not a deal breaker.
[132] All right.
[133] And I sound like the curmudgeon.
[134] All right.
[135] You're right about the walk.
[136] He said it.
[137] I just went with it.
[138] I'd get a bike.
[139] You can bike in 10 miles pretty quickly.
[140] Yeah, I had a buddy of mine that lived on my bedroom floor because he needed a place to crash and he would bike to work at TGA Fridays back in the day.
[141] And he survived to tell the tale.
[142] been done before.
[143] This guy's in a situation here where he's got a scramble.
[144] Yeah.
[145] And so you can come up with it.
[146] But I'm telling him I'm looking at cars right now.
[147] Well, I can tell Miles, you want to $3 ,500 will get you a decent car for a season, you know?
[148] Yeah.
[149] I'd start looking around.
[150] Start doing your homework while working these side jobs.
[151] But my guess is within three or four months, you've got a beater car and that's okay.
[152] And six months after that, you can upgrade that by a few thousand bucks and you're going to be out of debt soon.
[153] And this will be a blip in the grand scheme of life.
[154] But I hate that you're going through this, man. But I'm glad you also got rid of the car payment.
[155] That's a rough way to do it, but you just freed up 700 bucks a month, my man. Yes, sir.
[156] I appreciate it.
[157] Thank you for taking my call.
[158] Yeah.
[159] Best of luck with this situation.
[160] And there's a lot of local dealerships and mechanics, Ken, that I think would be happy to let go of a vehicle that has been sitting on there a lot that needs some work.
[161] But, I mean, listen, the bottom line is, if you look for cars under three grand, they're all over the place.
[162] marketplace.
[163] Yeah, it's true.
[164] They're out there, man. Oh, man, cars.
[165] Freaking cars.
[166] He's going to have to get some really good walking shoes.
[167] I would do, I'd probably buy a bicycle before.
[168] How long would it take you to walk 10 miles?
[169] Uh, my little legs?
[170] I'm going to give it at least 45 minutes.
[171] Is that fair?
[172] I don't know.
[173] I think you speedwalk.
[174] You could beat that.
[175] I'm not a marathon.
[176] I would love to see you walk 10 miles.
[177] I'd out walk you on any day.
[178] Not a chance.
[179] Guarantee you I'd out walk you.
[180] That's for another episode of the Ramsey Show, but for now, more calls.
[181] Coming up.
[182] We'll be right back.
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[189].D