Live Like No One Else So You Can Live Like No One Else!

[0] From the headquarters of Ramsey Solutions, this is The Ramsey Show.

[1] It's where we help you win in your life, specifically in your money and your work and in your relationships.

[2] I'm Ken Coleman.

[3] Jade Warshaw, my friend and colleague joins me this hour.

[4] We're here to answer your questions.

[5] Should we take in your money questions?

[6] I'll chime in.

[7] I'll be taking any questions about personal growth in your work and do you want to get ahead and how to get ahead and managing this money journey alongside of that.

[8] And Jade will wait in on that as well.

[9] the phone number for you to jump.

[10] It is AAA 825 -5 -2 -2 -2 -5 -2 -5.

[11] I also say this.

[12] I'll say a little bit more as we get closer to it, but a special treat today.

[13] And the clue is the word treat.

[14] That's all I can say right now.

[15] Well, I can say more.

[16] I just don't want to.

[17] Don't give it away, Ken. I'm not going to.

[18] Give it away, give it away, give it away now.

[19] I was thinking that.

[20] What are you thinking that?

[21] I was like Anthony Keats told us to give it away, but don't give it away.

[22] Love that.

[23] Let's get to the phone.

[24] Levi is up first in Tampa, Florida.

[25] Levi, how can we help?

[26] Levi?

[27] I hit the button, I promise.

[28] I hit line one, so we're not getting Levi.

[29] This happens from time to time.

[30] That's all right.

[31] We can keep it rolling.

[32] I think James.

[33] James is going to help us out.

[34] There we go.

[35] Levi.

[36] Levi, what's going on?

[37] Okay, hi, everyone.

[38] So my name is Levi.

[39] I am in $200 ,000 of student loan debt.

[40] Whoa.

[41] Yikes.

[42] I am an attorney.

[43] I make 115k a year.

[44] Take -home income is about $6 ,200.

[45] I also DJ and create content on the side.

[46] My overall take -home income per month is about $6 ,800.

[47] Here's my question.

[48] Here's my question.

[49] I want to refinance my student loans to get a lower interest payment.

[50] Right now my interest is 9%.

[51] If I refinance right now my interest payment or my interest rate will be and somewhere between seven and seven point five percent that's great should i refinance like right now or should i wait for interest rates to lower how long have you been out of school so um i graduated from law school in 2020 uh which was during covid i didn't and my student loan i never had to pay any student loan energy of the loans, and now they've just kicked back in.

[52] And I've made a couple of payments.

[53] Listen, and they're all private?

[54] They're all federal.

[55] Oh, so you're consolidating them at 7 .5%.

[56] You're not necessarily refinancing them.

[57] See, answers like that is that's exactly why I called it in the ranckees show.

[58] I don't really know.

[59] No, it's okay.

[60] With federal loans, you can consolidate them down, and they'll group them all together, and they'll put them at one interest rate.

[61] which is not always, for some people, it's not always the best move, but it sounds like in your case, it is the best move.

[62] The thing that you need to realize with that is you get one shot to do it.

[63] And so I think that's why you're kind of worried of should I do it now or should I wait?

[64] That's accurate.

[65] Okay.

[66] With your, well, let me ask you a couple more questions before we get to that.

[67] Do you have any other debt?

[68] Well, I'm listening to the Ramsey show for about three months, and over the last three months, I paid off all my credit card debt.

[69] Sweet.

[70] Awesome.

[71] Anything else?

[72] Cars?

[73] My car is 100 % paid off as of about six months ago.

[74] Right now I pay, and you're probably not going to like this, I pay $12 .50 in rent, but I'm ready for an upgrade, sorry.

[75] Who are you apologizing to?

[76] Not me. Well, I mean, you know, right now the debt snowball is $200K.

[77] And if I raise my rent, it's going to be, you know, $2 ,000 -ish, but I'm sorry, I don't have an in -unit, washer -dryer, like, I'm ready for an upgrade here.

[78] Okay, that's your choice if you choose to do that.

[79] I mean, if you go to 2000, you're still not, I mean, you're going over 25 % if you do that of your take -home pay.

[80] Right, okay.

[81] So is that, like, is 25 % like the metric that I should wear?

[82] When we talk about buying a house, it definitely is.

[83] And in your case, with Baby Step 2, I would highly, I would still consider that kind of a framework.

[84] I like where you're at now.

[85] And I want you to move up in hotel, in hotel, my goodness.

[86] I want you to move up in apartment.

[87] Is there any, any way that you can save it until after you pay off this debt?

[88] Because here's the thing, that extra $800 or $750, that we're talking about months of freedom there.

[89] And you've got to really weigh the opportunity cost of what, if, what, whether you take that extra $750 and get your end unit because it feels like that's kind of a celebratory thing for you or kind of like a status thing.

[90] Like, listen, I deserve this.

[91] I've been working hard.

[92] I've been in law school.

[93] Give me the apartment I want.

[94] And I understand that.

[95] But man, oh man, having that extra $750 over the course of time knocking out these student loans, that is a big, big deal.

[96] And I do want you to weigh that heavily.

[97] Have you done the math out on that?

[98] you're absolutely right i have done the math out on that and it's not pretty what about a roommate um not willing yeah if he's ready to do that he doesn't want to live with anybody you got to make a decision and i just think this is a bad idea i think it's a bad idea for you to increase your expenses right now when it's really not that big of a lifestyle issue i get why you feel the way you feel but now we're always going to give you the advice that says sacrifice sacrifice because we want you to get free sooner as jade said so we're not going to be in favor of that how many how much of so you're bringing home 6800 how much of that is going towards your um debt at this point so right now i put about two thousand dollars per month to student loans okay so that's well and and i i picked like an income driven repayment plan this is before i became obsessed with the dave ramsie show on youtube and now So it's like, my payments are $600 -something, which is laughable.

[99] So I've been overpaying my payments.

[100] What kind of law do you practice?

[101] Workers' comp.

[102] What's your, what's the ladder look like over the next one to three years, financially for you?

[103] When you say ladder, like, how much more can I make over the next one to three years?

[104] Yeah, with a lot of gray.

[105] I want to know how you can increase this income because that's what needs to happen.

[106] We need to be busted it.

[107] Well, staying at the same thing where I currently am, which I'm planning on doing, I could probably go up to probably 1 .30, 140 over the next three years.

[108] Okay.

[109] No freelance opportunities?

[110] Not really.

[111] The firm that I'm at, I would need to disclose and get approval for a lot.

[112] Okay.

[113] You understand why I'm asking that, right?

[114] I mean, $200 ,000, very doable with your ability, but you're going to have to increase your income.

[115] income.

[116] This is going to be a long journey.

[117] Yes and no. Yes, you do need to increase your income, but I kind of think 2000, are you single?

[118] Yes?

[119] I'm saying, yeah.

[120] I think 2000, if you're making $6 ,800 a month, you have no other payments besides this.

[121] I think 2000 a month is a little wimpy.

[122] Okay.

[123] What would not be wimpy?

[124] I think, I think that there's areas in your budget that you can cut more.

[125] And I sense that because I'm looking at the numbers.

[126] And I also sense that because you're creeping up on wanting another apartment already.

[127] And so I just sense that there's things in your life that you're like, listen, I've earned this.

[128] I want to spend my money on this.

[129] And that's true.

[130] But again, you're weighing that opportunity cost.

[131] I think you can squeak another $500 or $1 ,000 out of this budget.

[132] I think you need to do what Ken did and you need to get your income up.

[133] I don't want this taking you eight years to pay off.

[134] That's far too long.

[135] I want this done in four years, and you can do that.

[136] Yeah.

[137] Good stuff.

[138] Thanks for the call.

[139] Glad you've joined our community.

[140] Stay with us.

[141] You will get through this.

[142] All right, we're just getting started, folks.

[143] Merry Christmas to one and all don't move.

[144] More of your calls coming up.

[145] This is The Ramsey Show.

[146] I've been doing this show for over 30 years, and some of the saddest calls I have taken are from situations that are completely preventable.

[147] Yeah, and what's so hard is I feel like one of those, especially the ones that I'm like, oh, it's terrible.

[148] People that call in and their spouse has passed away suddenly, and they don't have life insurance.

[149] It's when you have to think through how am I going to pay my bills in the middle of next week.

[150] Yeah, in the middle of all that grief.

[151] Like it's just, it is, it's terrible.

[152] So life insurance is the one thing, especially as a mom with three little kids that I'm like so big on for people to get because it's inexpensive.

[153] Zander is the place that Winston and I actually get all of our life insurance.

[154] And it doesn't cost much because Zander shops among a gazillion different companies.

[155] It doesn't cost much.

[156] You just have to admit that someday you're not going to be here.

[157] You got to say it out loud and you got to say, I'm going to say, I love you to my family by taking care of them and taking the time to put this stuff in place, the cost of stinking pizza.

[158] To get a free quote, call 800 -356 -4282.

[159] That's 800 -356 -4282, or go to Xander .com.

[160] Welcome back to the Ramsey Show.

[161] Thrill to have you with us.

[162] I'm Ken Coleman.

[163] Jade Warshaw joins me, and we are here for you, America.

[164] 3888 -25 -2 -2 -25 is the phone number.

[165] 3 ,8 -25 -2 -25 -2 -5 -2 -5.

[166] Taking your questions about money, and I'm in the chair today, So let's take any questions about personal and professional growth, decisions about maybe starting a business, when do I go from side hustle to full time, hey, I'm stuck, I need a promotion, I'm not getting any kind of work -related questions, because those are always money -related, and we'd love to take some of those as well.

[167] So jump in, AAA 825 -5 -2 -25, and if you want to stay with us, if it's kind of like, well, we're getting, this is like, what, second to the last Friday of the year, am I right?

[168] Did I get that right?

[169] And you're kind of just like, I think I'll hang out today.

[170] You don't want to miss next hour.

[171] Jade has got another special treat.

[172] I get to sample it.

[173] There's another clue.

[174] You're really hyping this up, Ken. Well, you know, I even broke out the cardigan today.

[175] The new cardigan sweater.

[176] You look like a schickle of bourbon.

[177] A schickle?

[178] That feels right.

[179] I don't know what that is, but that doesn't offend me at all.

[180] It feels right.

[181] Let's get to Stephen in Houston, Texas, Stephen, how can we help?

[182] Oh, hi, guys.

[183] Thanks for taking the call.

[184] You bet.

[185] What's going on?

[186] So I'm looking for some advice.

[187] We just, me and my wife just recently got on the Ramsey plan.

[188] We're on baby step two.

[189] I'm a full -time high school teacher.

[190] And I've taken a part -time EMS job when I'm out on vacation and on the weekends and stuff.

[191] And I do some food delivery to try to just pack as much money as we can to.

[192] debt.

[193] Wow.

[194] But I'm afraid that my wife's getting overwhelmed by it.

[195] So.

[196] Because you're not home.

[197] What's going on, man?

[198] You're pretty emotional right now.

[199] What are you feeling?

[200] I just, you know, it's like a baby Christian, you know.

[201] I don't want to, I don't want to be so intense that she's like, oh, you know, you won't let us do anything and this and that.

[202] What's going on?

[203] I don't know how to have that.

[204] What's she saying?

[205] Well, take it.

[206] Well, take it.

[207] Take us to what's going on with you guys relationally.

[208] What are you feeling from her?

[209] What are you hearing from her that you would call us about this?

[210] Well, for instance, she works full time at home.

[211] We have two kids.

[212] And so when I'm like, all right, I'm going to go, I have a goal to make $50 a day with food delivery.

[213] Okay.

[214] Five days a week, so that's an extra thousand dollars a month.

[215] And then on Saturdays, I go work this EMS job, which are 24 -hour chefs.

[216] Oh, man. And that's an extra $360 each day.

[217] I do that.

[218] And then, but she's still like, well, you think you can stay home tonight so that, you know, we can clean the house and get ready for our Christmas brunch that's coming up.

[219] And I don't, I'm like, well, you think that maybe you, you know, you could pick up a little bit of that.

[220] so that we can continue to stay on plan.

[221] Okay, I see what's going on here.

[222] Yeah, and then I get kind of negative feedback.

[223] Well, you know, you're not here to help around in the house and stuff like that.

[224] Let me ask a couple clarifying questions.

[225] When you said she works full -time, does she work full -time as a stay -at -home mom or does she work full -time at a job that is work from home?

[226] Yeah, a job that work from home.

[227] Okay, but the kids are also there too, so that kind of falls on her as well.

[228] Right, when they're not in school.

[229] Like right now, we're on Christmas break.

[230] I totally get that.

[231] Okay.

[232] And then can you tell me how much debt do you guys have?

[233] Because I'm trying to understand.

[234] I mean, I get the intensity, but I want to, I just want to get a bigger picture.

[235] Okay.

[236] So we have about $26 ,000 in cars and credit cards.

[237] Break it down.

[238] What's the cars and what's the credit cards?

[239] My wife's cars almost paid off.

[240] It's got 3 ,000 left.

[241] My truck's got 11 ,000 left.

[242] And then we have about 15 ,000.

[243] in credit cards.

[244] Okay.

[245] And then another $10 ,000 around that that I owe to my mother -in -law.

[246] So what's the payoff date?

[247] If you didn't miss any night scheduled, you've got this thing figured out.

[248] If you stay on this pace, what do you anticipate the day would be how far in the future before you pay off this debt?

[249] I told my wife we can do it in six months, not our house.

[250] Sure, sure, sure.

[251] So let me just tell you, hey.

[252] So, Stephen, so man -to -man.

[253] here.

[254] I love this intensity, but this is a six -month window.

[255] It would be different if this were a six -year, and you guys had to be that intense.

[256] I love the intensity.

[257] I think you have to downshift in moments like this.

[258] When your wife is giving you the signal, you read it, man. You've been married long enough, you know, going after it, but if there's a holiday party and the situation you gave us, I think the answer, and this is not criticism.

[259] You called, so I'm going to tell you as a dude, just my take here, in that situation, you take the night off from gazelle intensity and you jump in and help her out.

[260] I think if you guys were in much bigger debt and it were far more intense, I think there's a conversation to be had to say, hey, babe, I got to do this, we got to be all in.

[261] But I think given this situation, I don't think this is three or four nights a week, I think you sit down with her and go, hey, I'm doing this to sprint, hang in there.

[262] But if you need that kind of emergency situation, raise your hand, and I'm going to be more sensitive next time, and I'll jump in.

[263] That would be my take in this situation.

[264] What's you guys is combined income yearly?

[265] You mentioned all the things you're doing, but what does that amount too?

[266] So that's recent, the EMS job and stuff, but so right now we make about 110 gross together, just at our regular jobs.

[267] And I'm looking to bring in, I got to play in, I got a plan to bring in 3 ,000 extra a month.

[268] So about 30 ,000 more.

[269] So maybe about 140 ,000 if I stay on this track.

[270] Okay.

[271] So you're basically saying our normal budget stays the same and I'm side hustling to pay off.

[272] I get it.

[273] That caused a little trouble soon because then we stripped the budget way down as well.

[274] We cut out some streaming services.

[275] Well, that's what I'm saying.

[276] It almost needs to be one or the other because you've got $39 ,000 of debt and you just outlined a plan where you're side hustling to bring in an extra almost 40 ,000.

[277] So if the side hustling alone is paying off the debt, then like I'm trying to find a way where you guys can balance this out a little bit a little bit more.

[278] Does that make sense?

[279] Because if you, yeah, I understand.

[280] If you're going to bring in $40 ,000 a year and this is a full year play as opposed to you just trying to like, to Ken's point, just squeak this thing out in six months, I do think that, you know, if you can get her on board, fine.

[281] But like, Ken, said, you know, if she's having these moments where she's throwing a flag on the play, like, listen, we haven't seen you.

[282] We don't even remember what you look like, dude.

[283] Like, you do have to cool out for a minute, right?

[284] And I think that, um, I think there's room for you to take the pedal off the metal just a little bit.

[285] Yeah.

[286] Right, great, because I don't want to burn her out.

[287] So I, so I guess that's what I was looking forward to say.

[288] Your instincts are right.

[289] Yeah, she's like a baby bird.

[290] Sometimes you got to get them to keep, yeah, keep coming to you.

[291] Stephen, I think your instincts are right you called us we're validating your instincts your instincts are right you're pushing really hard and it's affecting her and you don't want to lose her and in the midst of this cause the cause is not as important as as her and the kids right because it's not at that point what's the point especially during this season that's right but listen my man she seems to be all in we heard no signs of her not being all in it's just hey we got a holiday party and i'm swamped with the kids and I'm exhausted.

[292] You know, I also think it's important for you to show some appreciation to her for her being all in.

[293] And you know what?

[294] Maybe take a night coming up in the next couple weeks and totally surprise her and say, hey, babe, here's a little money that I've been making on the side hustle.

[295] Go out with some of your best girlfriends.

[296] Have a nice night.

[297] I'll take care of the kids.

[298] All right, Ken Coleman.

[299] Do you know, I mean, what do you think, Jade?

[300] I think that's a teamwork play.

[301] That's a teamwork play.

[302] Because she's, listen, I'm just, I'm honoring all the moms out there because my wife has done both.

[303] Stacey has fluctuated between being a work out of the home and a work in the home.

[304] Notice I say work in the home because that's a lot of work.

[305] And there are times where it's really good guys for us to just acknowledge the partner in the situation and say, hey, you know what, I appreciate you being on board.

[306] I want to show some love here.

[307] When you're going at that pace, you have to ahead of time say what the milestones are going to be.

[308] When we pay off this car, we get this.

[309] When we do this.

[310] And it sounds like they don't have those milestones in place, and that is so important.

[311] You need like a cheat day.

[312] You know, these big time athletes?

[313] That's right.

[314] I follow the rock.

[315] No big deal.

[316] I like the rock.

[317] Have you seen the man's cheat meals?

[318] It's pretty fantastic.

[319] So even one of the greatest athletes, actors, you know, get after guys in the world, you got those down days.

[320] I think Mama needs a little time off every once in a while, and you can fund that.

[321] And then we keep going with great momentum.

[322] Stephen, you're a good man and a good husband.

[323] This is The Ransley Show.

[324] Buying your first home is a big deal and sets the stage for your financial success.

[325] So, work with a mortgage advisor you trust, not just some random website.

[326] Churchill Mortgage is Ramsey trusted because they help you avoid hidden traps and expertly guide you through every step.

[327] Learn more at Churchillmortgage .com.

[328] This is a paid advertisement.

[329] An MLS ID 1591, an MLS Consumer Access .org, Equal Housing Lender.

[330] 1749 Mallory Lane, Suite 100.

[331] BrentWint, Tennessee, 37027.

[332] Welcome back to The Ramsey Show.

[333] I'm Ken Coleman, Jade Warshaw.

[334] joins me in studio.

[335] We're here for you, America, AAA 825 -2 -2 -25 -2 -2 -5.

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

[337] Taking your money questions, your work questions.

[338] It's a good time to be thinking about next year, and we are here for you.

[339] The question of the day is brought to you by Neighborly, your hub for home services.

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[344] Today's question comes from Sarah in Arizona.

[345] Can I donate money in Baby Step 2?

[346] My husband and I disagree about this.

[347] I made my husband do...

[348] I made my husband do FPU and agreed to the principals before I would even accept his proposal.

[349] Wow.

[350] Dang, son.

[351] We just got married in September and we are officially on a budget with combined finances.

[352] We have a good income around 400 ,000 combined, but our debt snowball is more of a debt wrecking ball right now, 448 ,000 in total debt.

[353] I have always given $100 a month to charities, and I put these as line.

[354] items on our combined budget.

[355] My husband says giving is for baby step seven.

[356] And this money should come out of my discretionary spending if I want to keep giving.

[357] I say it is, I say it is not $100 a month that is going to derail us from reaching our goals.

[358] I'm still tweaking the budget, but right now I have our individual allowance at $200 each month.

[359] Can you please be the arbitrator of this debate?

[360] Oh, I need to get you.

[361] I need to get you one of those black robes and you're judge jade right now i need to give you a gavel too what say you judge jade i i see a lot in this so i'm just going to pick it apart um this woman is strong oh you okay i do not want to mess with sarah i know sarah is coming in hot okay um here's what i'm going to say about giving and then i'm going to go back through uh this thing i do think it's important to give i think giving is an important practice that you you do all the time all the time even in baby step two now Pause for a second.

[362] I'm going to tell you my perspective and you have the ability, Sarah, to put this, make it make sense for you depending on your belief system.

[363] I'm a Christian person.

[364] The way I believe is you just give 10 % off the top all the time and you give that 10 % to your local church.

[365] That's what I believe.

[366] That's a spiritual practice for me, but it's also a financial practice and generosity for me. So even while Sam and I were in Baby Step 2, with almost the same amount of debt as what you have, Sarah, but with a smaller income, we continue to give not $100 a month, but 10 % of whatever we brought in.

[367] And for me, the reasoning behind that is not just, like I said, a spiritual one, but it is a practice and just good financial principle because at the end of the day, and this is for everybody listening, when you have an open hand, the money is sitting in your hand, money can easily get out, but it also means money can easily get back in.

[368] And that's a wonderful thing to know.

[369] And it's just a blessing.

[370] We say it all the time.

[371] Giving is the most fun you can have with money.

[372] So I agree with, you in principle, yes, you should continue to give.

[373] Matter of fact, up it.

[374] If you're making $400 ,000 a year and you want to give 10%, well, there you have it.

[375] What your husband is talking about, baby step seven, he says giving is for baby step seven.

[376] That really is if you want to give above and beyond, right?

[377] If you're like, listen, we've been at this, this lower mark of giving for a while.

[378] We're ready to increase.

[379] There's some dreams that I have.

[380] Yeah, baby step seven is the time to do that.

[381] I might just, and it might just be the way it's written, maybe just ease up a little, Sarah.

[382] Just maybe pull back a little bit.

[383] You're very, you're very strong.

[384] And all of these things kind of sound like, I told my husband we're doing this, and I told him we're doing this.

[385] And you're kind of like dragging him by the collar.

[386] She got him like the collar on the wall, you know what I'm saying?

[387] And I think that might make him feel a little, he might be feeling some type of way.

[388] and maybe this is a way where he feels like he can get a little control back because, you know, sometimes relationships get to be a bit of a power struggle.

[389] And so this feels more about a power struggle than it really does about giving.

[390] I'm not going to lie, just reading it.

[391] I may be wrong.

[392] Ken Coleman?

[393] I think you're right.

[394] I think the language implies her attitude towards him.

[395] And you don't want to take too many liberties with just a one -sided email.

[396] But yeah, it feels like this is not a partnership.

[397] This is a dictatorship is what it feels like.

[398] And so I think you're right.

[399] The budget needs to be adapted to include the giving that you're talking about based on what we teach.

[400] So I agree with you a lockstep.

[401] Man, I get it though.

[402] Money creates enough tension.

[403] Us telling the spouse how things are going to be, that doesn't lend itself to long -term financial partnership.

[404] It doesn't.

[405] And I mean, Sarah, hear me loud and clear.

[406] I have a Mr. personality as well okay like I pity the fool I pity the fool like I come in hot like Sam Warshot he can tell you right now I come in hot and so when I read that I recognized that yeah and so like we sometimes we have to pull back a little bit we we we stop in the room you know what I'm saying we just chill out who and guys even if she does stomp in the room never say that she stomps in the room there's a little bit of advice to all the dudes out there we float who man I'm already getting nervous I feel like I'm on eggshells already I'm to move on.

[407] By the way, the illustrious incomparable, Sam Warshaw is in the lobby.

[408] So he gave me a look.

[409] He kind of leaned over and gave me a look when you said that.

[410] That's all he did.

[411] I don't know what that means.

[412] I'll find out afterwards.

[413] Oh, boy, that's good stuff.

[414] All right, Brittany's up next in New Orleans, or as I like to say, Nalans.

[415] What's going on, Brittany?

[416] Hi, how are you guys?

[417] We're having a blast.

[418] What are you up to?

[419] working is that snowball.

[420] I have a question.

[421] Hey, before you ask the question, I got to know.

[422] When you live in the New Orleans area, is it a thing?

[423] Does everybody have bignets around Christmas?

[424] Is that a Christmas morning thing?

[425] I prefer sweet potato around this time of the year, personally.

[426] I just wanted you know, I order every year a box of the dough from Cafe Dumont and we do Benet's Christmas morning.

[427] Wow.

[428] Oh, yeah, that's my treat.

[429] Anyway, sorry, I got distracted.

[430] Brittany, what can we answer for you?

[431] Yeah, they are good.

[432] Okay, so I'm working on my debt snowball, and the next debt I have coming up is a personal loan for $5 ,000.

[433] Now, I was previously married before, and so this is a loan that I hold with my ex -husband.

[434] When we split, we did agree to split at 50 -50, and we've been paying the monthly payment since we split.

[435] it.

[436] Now, it's the next thing in my dad.

[437] Snowballs.

[438] So obviously, I'm trying to figure out what to do because he does not have his half of the $5 ,000 to pay it off currently.

[439] Who do you owe the money to?

[440] One name.

[441] Okay.

[442] So it's, okay.

[443] A lending service.

[444] Okay.

[445] It's a personal loan from a bank, not like grandma loaned you money.

[446] Okay.

[447] Correct.

[448] Yes.

[449] Is he good for it?

[450] Like, has, tell me what kind of guy this is.

[451] Is this the type of guy who's going to pay it?

[452] He's been paying it monthly.

[453] He's late sometimes, but he always gives it.

[454] But, you know...

[455] Is it in both of your names?

[456] For the most part.

[457] Yes, it's in both of our names.

[458] I'd probably...

[459] I'd probably pay my half and set it aside.

[460] And then by the time I get done with my debt snowball, if he still hasn't paid it, I'm going to pay it and move on.

[461] Okay.

[462] That's what I was thinking.

[463] Should I just pay the whole thing?

[464] Now, here's a thing.

[465] if you start to see because I here's the thing you pay half of this and there's still a monthly payment due so you need to monitor this and if you see listen he's not making his payment this interest is racking up and it's going the the bill is going up it's not going down you need to you need to reach over and just pay it off immediately but if you see okay he's making his payment you know this this is working because you know $2 ,500 is a lot of money I might change my mind hold on a second how much more do you have in your debt snowball Uh, if I sell my car, which I plan on doing, I don't have about 40K left.

[466] 40K left.

[467] Um, and how much is the car worth?

[468] The car is like 20.

[469] All right.

[470] If you don't sell that car because I think that's a big part of this, pay your half and watch it.

[471] All right.

[472] Watch it every month because I don't want this going back.

[473] If you see even one month that he's late, reach over and pay it off.

[474] All right.

[475] Thank you for the call, Brittany.

[476] When you said reach, I thought you said reach over and cuff him right in the back of the head.

[477] She could try that too.

[478] She could try that too.

[479] Hey, Brittany, you're doing awesome.

[480] You're on your way and nobody's going to stop you.

[481] Thanks for the call.

[482] Great advice.

[483] Jade.

[484] All right, don't move, folks.

[485] We've got to pay a couple bills and we'll be right back.

[486] This is the Ramsey show.

[487] This show is sponsored by BetterHelp.

[488] Hey, good folks, the back -to -school madness is upon us.

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[507] Welcome back, America.

[508] You've joined the conversation about your life, specifically your money, your work, and your relationships.

[509] We want you winning in all three of those areas.

[510] That's why we do this show.

[511] The Ramsey Show.

[512] I'm Ken Coleman.

[513] Jade Warshaw joins me. 3888 -25 -5 -2 -25 is the phone number to jump in.

[514] 3 ,8 -8 -2 -25 -2 -25.

[515] Let's go to Toronto, Canada.

[516] Max joins us there.

[517] Max, how can we help?

[518] Hey, Ken. Thank you, so much for having me on.

[519] Can you hear me okay?

[520] Yes, sir.

[521] What's going on?

[522] Awesome, yeah.

[523] So I'll kind of just give you the question, and then I guess we can dive into it.

[524] So I'm 23, graduated university two years ago now, and thinking of moving on for my first full -time job and taking a shot as an entrepreneur doing some social media and YouTube content.

[525] Okay.

[526] And what do you make in your full -time job?

[527] So right now I'm at 80 ,000.

[528] I also have a side hustle that I'm doing about 5K a month.

[529] Oh, wow.

[530] What's the side hustle?

[531] Yeah, so I'm pertinent to this company called Odds Jam, and it's a little bit weird, but kind of with a lot of the new sports books and gambling companies coming to Canada.

[532] There's a lot of opportunities for different promotions and things like that.

[533] So using the software, I've been able to have success in an average about 5K a month past year.

[534] Wow.

[535] And so where does the YouTube social media venture that you mentioned, does this, is this related at all to the work you just described, that's the side hustle, or is it completely separate?

[536] No, so it would be completely separate.

[537] My game plan would be to continue to do the side hustle and then kind of leave this full -time job and then be able to fully dive into, you know, doing 60, 80 hours a week on the, you know, the YouTube social.

[538] Do you have any debt right now?

[539] Nope, no debt.

[540] No debt at all.

[541] You're single?

[542] I have a girlfriend of three years.

[543] Girlfriend of three years.

[544] What kind of content are you planning to do, social media and YouTube?

[545] Yeah, so it would be kind of in the stealth and proof.

[546] self -development space, specifically here to a targeted audience of young men, probably within the age of 14 and 22.

[547] A lot of it would kind of be either fitness -related, mental health, building self -discipline, confidence and stuff with how that's success with women as well as business.

[548] Have you done any of that content before, or is this just an idea?

[549] So I haven't done any of that content before, but I am publishing a 300 -page self -improvement book in January.

[550] So that's going to be coming in the next month and all of the things I talk about kind of in the book are going to be directly related to the content I'm doing on the channel.

[551] All right.

[552] Well, then based on what you've told me, I think what I would do if I were you is I would release that book, proud of you for that.

[553] I think that's great.

[554] I would start doing this content now.

[555] I would not go all in.

[556] To me, it just is not worth taking a $20 ,000 pay cut.

[557] I love that you're making $80K in a day job that is allowing you enough bandwidth mentally to be making $60 ,000.

[558] You're on pace to make $60 ,000 a year.

[559] in the side hustle.

[560] So I wouldn't just immediately walk away from the ADK and to go all in on the social because I don't think that's the right strategy.

[561] I think what I would do is I would come up with a strategy to test this.

[562] What's a legitimate test?

[563] And I'm making this up.

[564] Please don't let me hang this on you.

[565] And I want Jade to weigh in here in a second on this too.

[566] But I would be thinking social and YouTube.

[567] So is it three videos a week?

[568] at one, how many posts a day, get whatever you think is a legitimate test, not be all into all.

[569] Because remember, starting a social media side hustle should have the same mindset as starting a regular brick and mortar business, meaning I'm not going to go all in on a bunch of inventory, buy a building, I'm going to lease, I'm going to do a small inventory, I'm going to test this stuff.

[570] So to me, I would stay put doing exactly what you're doing now.

[571] and what I would do is is I would commit 20 hours a week to it, 15, whatever you can do, let's go full -blown test because you could still hustle right now, put out enough content to test it and see is there anything there.

[572] Then what I would like to see is social media, this new side hustle, the personal development stuff, I'd like to see that getting to a point where you can see it generating 20 ,000 so that we replace the 80K from the day job.

[573] There's just zero reason for you to risk right now.

[574] Also, that book, when did you say the book comes out?

[575] So the launch is planned for the end of January of this year.

[576] Okay.

[577] And, I'm, I'm just asking, is this, is this something you've done on your own?

[578] Like, you found a publisher and you did this, or is there some sort of deal that you got because of something you did and there's a little bit more hoopla around it?

[579] Can you tell us like the, the seriousness of this?

[580] Yeah.

[581] So I wrote the entire book myself and then I worked with another publishing company in Canada which kind of helped me with you know cover design going through the manuscript you know going over everything with a fine tooth comb but it's up to you to market yeah exactly okay so I think to Ken's point that book is going to be a big test for you too because you're going to look and see okay like is it selling are people interested in this topic what's the feedback you know on on Amazon you'll be able to read those reviews and see everything that's going on with that book so that's one of the way you'll test it.

[582] But I, you know, Ken and I can both tell you from social media.

[583] Before I came to Ramsey, I started a channel and it is hard work.

[584] People, you know, people like to look at influencers and go, oh, you're, you're an influencer.

[585] How hard could it be?

[586] And I'm like, no, no, no, no, no, no. It's hard work.

[587] It's very hard to get people.

[588] I mean, it's a constant competition to make sure your content is what people want to see.

[589] So do you plan on having somebody to help you with it, or are you going, is the first step just you doing it on your own?

[590] Yeah, so kind of my thought process with, and I know that this is someone you guys have on the show, Alex Mermosey, and kind of something that he says is a lot of people that kind of have one foot in the door, one foot out the door, and that's kind of why I wanted to quit and go full -time in it, because I feel, you know, something Ken talks about as well as, I don't necessarily have to create capital in terms of editing video skills and stuff, but I feel that a skill I do have is great communication, you know, I believe myself, but, I don't necessarily, but, you know, if I commit to this for a three -year time window, let's say, and I'm doing 68 hours a week on it, I believe I can do successful.

[591] It's more so just having that time that I don't really have, you know, working nine to five and, you know, regarding what Ken said earlier, you know, 20 hours a week, something like that, no, I do think that I can do that, but a big part of it is also fitness, right?

[592] So I'm in the gym probably two, three hours a day.

[593] So on top of my nine to five and the side hustle, I don't really have a lot of free time in the day per se.

[594] So that's why I'm at a bit of a crossroads, if that makes sense of you.

[595] Well, let me address, because I've interviewed Alex and no Alex.

[596] And so I want to address what you said.

[597] I think it's correct what he has said, but there's also scaling involved, and there's a season when we're testing, and then there's a season when we scale.

[598] And what I heard you say is quit everything and go 80 hours a week to be able to do this.

[599] Did I hear that correctly?

[600] I would still do the side hustle that I'm doing, the odds of the end thing.

[601] So how many hours a week do you have to put into that?

[602] making you 5K a month?

[603] Probably two hours a day, every day.

[604] Okay.

[605] Well, listen, I'm not going to tell you not to do it.

[606] I told you what I would do.

[607] And I would eventually ramp up.

[608] I'm with Alex.

[609] At some point, you've got to go all in.

[610] I just don't think you're ready to go all in yet.

[611] Yeah, how quickly, okay, let's say you're replacing the $5 ,000 a month that you're making from your $80 ,000 job that you're netting.

[612] How quickly do you think by posting on social media and YouTube that you'll recoup that in your mind how quickly do you think yeah i think if i do two years how long i do two years two years two years that'd probably be 800 videos i think i could have a good audience by them it's it's it's very speculative it's very spec i'm just saying it's very speculative because i again this is this is from somebody who's saying who's doing what you're saying to do i did it for two and a half years and i had just started making money just the when i say money i mean a little bit of money not not anything close to bank.

[613] It's a little bit of money, having some opportunities to, like, and Max, she's really good.

[614] She's really winsome.

[615] I'm just going to be honest with you.

[616] I mean, people like looking at her and listening to what she says.

[617] She's dynamic, and it took her that long.

[618] She's a big -time performer.

[619] I would just rather you take my advice because I think I'm right.

[620] And you'll get there.

[621] Because I think it's not going to hurt you.

[622] You've got to try this.

[623] I know you don't have a lot of.

[624] time to be able to crank out, but start working that gym time into video time.

[625] If you're in the gym for two hours, they'd figure out a way to film it.

[626] Film the whole time.

[627] You got some extra money.

[628] I'd hire somebody to be following you around.

[629] You know, that's what Alex does.

[630] Alex has got a guy that's full -time, follows around shooting stuff and editing.

[631] I'd rather you keep the day job, invest some of that money in somebody filming you while you're at the gym for two hours.

[632] But test it.

[633] And then when we know it's really working, then we scale it, Jane.

[634] I just don't want you to go backwards financially max but i love your heart and uh your desire so thanks for the call jade warshaw good hour thank you my friend to our fearless leader old captain our captain james childs and the fearless crew in the booth thank you guys this is the ramsie show live from the headquarters of ramsie solutions this is the ramsie show it's where we help you win in your life specifically with your money in your work and through your relationships 3 ,8 -8 -8 -25 -5 -2 -2 -5.

[635] That's the number to jump in.

[636] Jade Warshaw joins me. I'm Ken Coleman, and we are thrilled to be with you.

[637] To answer your questions, we're for you.

[638] Let us coach you up today, AAA 825 -5 -2 -25.

[639] Jade, specializing in the money questions.

[640] I'll specialize in any work -related questions.

[641] We'll kind of tag team any question that comes in, and we believe that your best days are ahead.

[642] AAA 8255 .2 .25 special segment coming up later this hour.

[643] Jade, I want you to tease it, however you choose to tease it, because these are my favorite segments of all segments.

[644] And I don't care if Dave's listening, George, Rachel, John, I don't care.

[645] This is why I love hosting, co -hosting the Ramsey show.

[646] Is that a setup?

[647] Okay, King, you didn't have to fire shots.

[648] But, yes.

[649] Why?

[650] That's fantastic.

[651] This is great.

[652] Yeah, we're talking about it's the holidays, right?

[653] Christmas is coming up this weekend and then you got New Year's and hosting parties, Ken. There's always these expectations.

[654] How can we save money and have a great contribution in the midst of that?

[655] So we are going to have a test, a taste off.

[656] I'm going to be subjecting myself to your tips.

[657] That's right.

[658] And then I am just supposed to comment and this is my favorite thing to do.

[659] That's right.

[660] There will be beverages.

[661] Can you tell the difference between it?

[662] a $10 bottle of wine and a $30 bottle of wine.

[663] We're about to find out.

[664] In this sweater today, you would think I would know.

[665] But I don't know.

[666] I don't know.

[667] I don't know.

[668] I don't know if it's all surface or if I have a palette that is good enough.

[669] So we'll see.

[670] So you don't want to miss it.

[671] And you're actually going to learn something and save money.

[672] Always.

[673] Thanks to my bright colleague over here.

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

[675] I can't wait.

[676] I'm already getting hungry and thirsty.

[677] Let's go to Rebecca in Portland, Maine.

[678] Rebecca, how can we help?

[679] Hi, good afternoon, everybody.

[680] How are you doing?

[681] Good afternoon, Rebecca.

[682] How can we help?

[683] Hi, so I'm trying to figure out how I can get stung on paying down and stumble all of my debt.

[684] And what I had told the dispatches where I called in was that, so we are on a Section 8 voucher, and so it goes by income.

[685] And so between that and then my son's SSI, like our incomes kind of limited and so I've got already like that collect was calling me and our rents going up in a week and a half after the first so I'm trying to figure out how I can start slowly paying down these debts given what are new budgets going to be okay how much debt do you have total roughly about I to take educated guys 5 ,000 5 ,000 and it's what credit cards credit cards yes okay so 5k and credit card debt and that's it what about transportation How are you, what's your situation there?

[686] We ended up actually having to junk our car about two weeks ago.

[687] So right now we don't have a vehicle.

[688] We try to take public transit up here, but the public transit isn't very good.

[689] Buses here run about once every two hours.

[690] Oh, man. So we've been having, yeah, we've been having to take a lot of Lifting Ubers around.

[691] So I'd say about weekly with that.

[692] I have to do two a day.

[693] Let's see.

[694] I rounded up about $20 for $20.

[695] Yeah, that's expensive.

[696] Okay.

[697] I'm going to say probably about 100, 120 a week almost in Uber.

[698] Yeah, so we need a car.

[699] Okay.

[700] Now, you outlined a little bit of the Section 8 and the SSI.

[701] I'm not an expert on that.

[702] So I might ask you a lot of questions.

[703] How much are you bringing in?

[704] And are there any limitations on your income because of the SSI?

[705] Okay.

[706] So with SSI, my friend's SSI, it's based off of my husband's income of that tends to fluctuate.

[707] I know for James, January, he'll be getting roughly, I'm going to just grounded off to about 800 a month starting in January, but that could change in the future.

[708] What my husband gets biweekly after taxes, etc., taking out is about $1 ,500 after taxes, and then what was the last thing?

[709] Our rent is going up after the first to just over $1 ,600.

[710] And obviously, with any programs, whether it's Section 8 or any Medicaid programs, they count everything pre -tax.

[711] So this is net pay that I'm talking about.

[712] So you get $1 ,600, the Section 8, you pay $1 ,600 towards, that's what it's worth?

[713] Yes.

[714] Okay.

[715] All right.

[716] So I'm looking at your income, and I'm like, okay, I'm seeing $2 ,300.

[717] Is that right?

[718] The $800 from SSI and the $1 ,500 from your husband?

[719] Oh, he gets biweekly, I should say, sorry, about $1 ,500 biweekly.

[720] Your husband?

[721] Yes.

[722] Okay, so $3 ,000 a month.

[723] Yes.

[724] And then the 800 from SSA, SSI, so 3 ,800 is what you're working with.

[725] Yes.

[726] Yes.

[727] Okay.

[728] Now, what happens if you bring in more money?

[729] I have to report it to our local housing agency, and then they have to calculate, we calculate what our rent's going to be, which is part of the reason why I haven't worked.

[730] I'm also disabled, and I have to disable two out of my free.

[731] kids are on the autism spectrum so they're considered disabled so but yeah so it does affect our housing and anything else we get like right now we don't get snap because we're over income for snap okay let me i'm going to just throw out a bunch of stuff and you poke holes in it but i'm going to throw it out here and ken you're the career guy what i know is there's a lot of work from home positions a lot a lot a lot and you're talking to me on the phone and i know exactly what's going on you're here with me so my question is is there anything that you can do from home you're working on your computer you're working on the phone lines i don't want you stuck in this and i don't think you have to stay stuck in this 1600s like that you know a two thousand dollar i mean a guy called in the other day that was you know that that was his rent so i want you to consider your options here and i think that when you feel backed into a corner you're backed into a corner But I want you to really challenge yourself to open your, to open your mind up to look like, what could I do?

[732] What could I do to make $3 ,000 a month?

[733] Because suddenly, if you make $3 ,000 a month, now you got, you know, 600, you almost got $7 ,000 a month.

[734] And now we're getting into like a regular income zone, right?

[735] Right, right.

[736] The average, before you say well, but average is around $67 ,000.

[737] Okay?

[738] That's average.

[739] Around $67 ,000 a year combined.

[740] That's where most people are.

[741] What is real quick, because we're running out of time.

[742] This is an income play.

[743] Rebecca, what does your husband make really quick?

[744] 3 ,800 a month.

[745] 3 ,800 a month.

[746] Okay, if you're making...

[747] So roughly annually, about, I'm going to say 50, between 50 and 52.

[748] So, Rebecca, here's the deal.

[749] I understand your situation with your kids, but these are the, this is the pitfall of government programs.

[750] You feel like you can't make more money because then they're going to penalize you and you need these services.

[751] But I'm telling you, you making more money, get you out of government.

[752] housing, get you off, and you guys can afford it.

[753] It's messing with your confidence.

[754] You have got to be making more money.

[755] If you just make an $18, $18 an hour, that's going to put you right to shade under $3 ,000 a month that Jade's talking about.

[756] Listen, your ability to move forward on all of this and getting a car, I'm looking at cars right now, $4 ,000 for a Toyota Corolla in Portland, Maine, $142 ,000 miles, go make money, get transportation, go make money, get out of government housing, go make money, supplement your kids' services.

[757] This is about increasing your income.

[758] Getting out of debt is going to give you freedom.

[759] You guys can do this, but you have to attack it like their life and your life depends on it.

[760] This is the Ramsey show.

[761] Fake it till you make it.

[762] It's popular career advice, but it doesn't work for very long.

[763] If you don't love what you do, you can't fake the enthusiasm and energy you need to win at work.

[764] You also can't fake your physical health and energy.

[765] Everybody knows we should eat more fruits and veggies, but fruit chews and veggie chips don't count.

[766] If you aren't winning physically, I promise you're limiting your opportunities to win professionally.

[767] Folks, I know you're going hard right now to pay off debt and get ahead professionally.

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[772] That's balance of nature .com with the promo code Ramsey for 35 % off your first order.

[773] Welcome back to The Ramsey Show.

[774] I'm Ken Coleman.

[775] I'm joined by Jade Warshaw.

[776] The phone number to jump in is AAA 8255.

[777] 225.

[778] We want to help you out on your money questions, your work -related questions.

[779] Let's go to Brent in Philadelphia.

[780] Brent.

[781] How can we help?

[782] Can you hear me okay?

[783] I can, Brent.

[784] What's going on?

[785] Hey.

[786] Yeah.

[787] Thank you so much for taking my call, you guys.

[788] Jayden.

[789] Ken, just really quick, I actually just ordered your book a few days ago from paycheck to purpose.

[790] That's probably going to help me get some ideas with my career.

[791] But the main issue, the main issue or the main question I have today, involves our second baby.

[792] We just found out a couple weeks ago.

[793] We're having our second child.

[794] Very nice.

[795] Congrats.

[796] Thank you.

[797] I appreciate it.

[798] So with that in mind, we're trying to find some prenatal care and we're looking at using a big wife.

[799] But we're trying to figure out how, to cash flow it.

[800] I just went through the numbers through our insurance company and found that the midwife is a lot more affordable, but it's still going to be about $6 ,500 out of our pocket before insurance will even cover it.

[801] We have a pretty high deductible plan.

[802] But our finances are pretty tight at the moment.

[803] So I'm just kind of looking for a little advice on maybe ways that we could possibly cash flow it or um maybe you know step up in the work department uh what's making finances tight what's making the finances tight right now well uh i i think it's more of like uh um i don't know if it's necessarily an income issue like currently i bring home about four thousand dollars a month so about 48 or 48 000 a year um our mortgage currently is about 1266 a month we currently know about $169 ,000 on our house.

[804] Okay.

[805] And then currently we have a couple of debts.

[806] I have some student loans that just went back into repayment.

[807] Now, you guys have spoken of that often.

[808] So I've about $39 ,000 there and then $11 ,000 in person, well.

[809] Okay.

[810] So I'm crunching the numbers on there.

[811] Currently, with all of our current expenses, we've been trying to cut in different areas.

[812] But we're only ending up with maybe a couple hundred dollars extra.

[813] a month if that.

[814] Like two or three, like two or three hundred extra a month?

[815] Okay.

[816] Okay.

[817] Yeah.

[818] So why do you say that it's not an income thing?

[819] It definitely is.

[820] Because I thought, well, Jade's going to sit down and help you with that budget, but after you walk through all this, you're telling me there's not a lot of fat.

[821] And then you're saying it's not an income thing.

[822] So I'm confused.

[823] Okay.

[824] It is an income case.

[825] You get my point?

[826] Yeah, I get it.

[827] Yeah.

[828] So I jumped in there real quick.

[829] I want to get back to Jade.

[830] But I mean, if I'm, if I'm you, I'm looking at $6 ,500 is a number that I'm circling on a piece of paper.

[831] And I go, as a dad, as a husband, I got to come up with $6 ,500 for this situation.

[832] And I've got nine months and counting.

[833] It's ticking down.

[834] So I start with, at this point.

[835] What's that?

[836] Yeah, go ahead.

[837] You need to find $1 ,000 extra dollars a month.

[838] That's what it boils down to.

[839] You need to find $1 ,000 extra dollars a month.

[840] Get after it, my friend.

[841] I'd be dividing it by $6 ,500, and now I know what my mark is, and I've got to get after it.

[842] And, comma, and, that's the first thing, because that you can go out and door dash that, right?

[843] You can Instacart your way into that.

[844] Ken, I don't want him instacarting forever.

[845] No. And you're bringing another person into this world, and these people can eat, okay?

[846] babies eat, and when they turn three years old, it just is off to the races.

[847] So you're going to need to find a way long -term to increase beyond $4 ,000 a month.

[848] And Ken Coleman take the wheel.

[849] I just want to ask you real quick, until we talk about the future, what are you doing now for the job?

[850] So currently, I work for a large automotive manufacturer.

[851] I'm one of their field service reps. What does that mean?

[852] So I basically, I'm technical support for dealerships.

[853] Like computers?

[854] So if you have a mechanic, you know, someone that turns wrenches on your car at a dealership, whenever they have questions, like if they have a car that they can't fix, I basically, they can reach out to me and I step in and give them advice on how to fix it.

[855] Wow.

[856] So you're consulting.

[857] Wow.

[858] So you're consulting mechanics?

[859] Essentially, yes.

[860] Which means you can fix cars?

[861] Yes.

[862] And it feels like that is a awesome way to be making some extra money.

[863] It's taking one of your top skills that is at a premium.

[864] Are you laughing?

[865] I'm just laughing because I've actually been tossing around the idea of maybe, you know, tinkering and flipping some equipment on the side.

[866] My friend, I would stop tossing the idea around and I'd grab a hold of it and do it.

[867] Because listen, I'm not knocking DoorDash or delivering pizzas.

[868] The Ramsey Show is never going to knock any way.

[869] work.

[870] However, time is money.

[871] You have you ever heard that old phrase?

[872] Mm -hmm.

[873] So using your premium skills, meaning the skills that I can get the most money for my time is the play for you right now.

[874] And you fixing stuff up and flipping it, I stink.

[875] And love that idea.

[876] There's real money in that.

[877] And again, we've got a target.

[878] And I love what Jade is saying long term.

[879] We're now going, okay, what do I want to do?

[880] Because there's The reason you bought my book is because you're thinking about the long term, 15 years, 20 years down the road.

[881] What does that life look like?

[882] What are you doing for work that far down the road?

[883] Yeah, that's true, yep.

[884] But what are you thinking?

[885] You got an idea?

[886] Well, I've been, that's part of why I kind of wanted to start thinking because there are jobs available, like farther down the line, at least for my career.

[887] but they're all back where the company is based.

[888] It's one of the big manufacturers in Michigan.

[889] Brent, when I asked you that question, so when I asked you that question, you had an answer, and then you begin to think through it, and you're dealing with some fear and doubt.

[890] I've coached almost 10 ,000 people on the Ken Coleman show who call me up and they act like they don't know what they want to do, and I always find out about two minutes in they do.

[891] They're just afraid to say it.

[892] So because I'm your friend and Jade's your friend, and we don't judge anybody, What's that thing that you've been thinking about that you want to do?

[893] Just say it.

[894] Well, I'm...

[895] Let's see.

[896] See, you're already trying to couch it.

[897] Just say it.

[898] I'll tell you if I think you're crazy.

[899] I mean, I really want to work with doing some engineering type work.

[900] There we go.

[901] I don't...

[902] Hey.

[903] But the avenue to do that is to go back.

[904] Go ahead.

[905] Go back to what?

[906] So we have to move back.

[907] to Michigan.

[908] So right now we live in Pennsylvania, but we'd have to move back to Michigan, which my wife is not.

[909] Why?

[910] That's the only place you can do that type of engineering work?

[911] I mean, I could move to a job similar to the one I currently have for another company.

[912] No, my friend.

[913] Brent, Brent, you know what kind of engineering work you want to do, yes?

[914] You are limiting yourself to saying that you can only do it in the state of Michigan.

[915] Am I right?

[916] Why is that?

[917] Yeah, I know you think I'm right.

[918] Did you say you think I'm right?

[919] Yeah.

[920] Oh, okay.

[921] I'll tell you why, Jade.

[922] I think that's because, Brent, you have, that's where you think you've got relationships, and that's the only place you can get that kind of image -generary work because you used to live there and you used to work there.

[923] I think you limit yourself because you struggle with a lot of self -doubt.

[924] Is this true, Brent?

[925] That's true.

[926] All right.

[927] Brent, now how is it that I know that?

[928] I've never met you before my life.

[929] I'll tell you how I know and I can hear it on you.

[930] And I'm not judging you.

[931] I'm telling you, my friend, that we all.

[932] all deal with that.

[933] I deal with doubt.

[934] Listen, Jay, we all deal with it.

[935] What I'm trying to get you to see real quick is that you have been limiting yourself based on your own beliefs.

[936] When I walk you through it, you laugh at yourself and chuckle, because you know I'm just saying straight up common sense that Michigan and the previous company and the previous industry is not the only place that a guy with your talent and your passion and your experience and your desire can do engineering work.

[937] Is that true or false?

[938] That's true.

[939] All right then.

[940] So here's the deal.

[941] Back to the issue at hand.

[942] Start using that skill set right now because you've got to come up with $6 ,500 so that midwife, and that's the best way for you to do it.

[943] Read the book from paycheck to purpose.

[944] It's going to be like you and me and your ear with the speech I just gave you.

[945] And you, my friend, need to start to connect and begin.

[946] to look without committing, look around the country, look for companies and industries where the engineering work that you are qualified to do where you can do it.

[947] And as you begin to look, you'll begin to see possibilities that you never saw before, Brent.

[948] Congratulations on that baby.

[949] But right now, my friend, $6 ,500 on a whiteboard.

[950] Circle it and start getting after it.

[951] This is the Ramsey Show.

[952] Welcome back to The Ramsey Show.

[953] I'm Ken Coleman Jade Warshaw joins me. Hey, folks if you're tuning in right now live or later and you're watching now and you're going should I hang around a little bit longer trust me next segment you don't want to miss it jade warsaw special segment how to save money and still entertain the right way during the holiday season this is the gift that keeps on giving this segment so i can't wait i'm excited and i get to just sample whatever she's bringing in here so for me it's just you just want snacks kin you know what i'm a simple man so i'm very excited about that all right clara is up in louisville Kentucky.

[954] Clara, how can we help?

[955] Hey, guys.

[956] I am thrilled to be able to talk to you guys.

[957] Well, we are thrilled to talk to you.

[958] What's happening?

[959] Yay.

[960] I have a question.

[961] More for Jade, my money girl.

[962] Uh -oh.

[963] Okay.

[964] I'm going to smoke a cig while you guys talk.

[965] This will be great.

[966] Okay.

[967] We are looking at buying a house next year.

[968] And we want to know if we're crazy or we're rushing into it or if our numbers are looking okay and what order we need to do things.

[969] Okay.

[970] Tell me more.

[971] Right now we have $6 ,200 on a credit card.

[972] Okay.

[973] $7 ,000 on a truck and then a $20 ,000 home equity line of credit.

[974] Within the past, since August, we've paid off $34 ,000 in credit card debt.

[975] Good.

[976] So we're on a roll.

[977] And my goal is to have the credit card and the truck paid off by March.

[978] Okay.

[979] Um, and then I didn't know do I not pay on the home, well, I pay the minimum payment on the home equity line of credit and, um, do our three to six months emergency savings?

[980] And then when we sell our house, pay that off and still have 20 % to put down on the new house.

[981] I'd pay it off.

[982] I'd work to pay it off for two reasons.

[983] A, it's less than half of the value of your home, I'm guessing.

[984] Like, it's, less than half.

[985] Yeah, we owe $1 .24 on our house and we could sell it for $2 .30.

[986] Yeah, because it's less than half of that $1 .24, I'd go ahead and pay it off.

[987] And here's the thing, if you don't pay it off, it's going to cut into your winnings, right, when you sell the house.

[988] Right.

[989] So you may as well paid off so that money goes right back into your pocket.

[990] Again, it's that idea of a forced, you're forcing yourself to save the money by paying off this $20 ,000.

[991] Does that make sense?

[992] Okay.

[993] Yeah.

[994] And you're going to get it back.

[995] We still need the three to six months before we buy, or can we take that out of what we make on the house?

[996] Again, it's what you're saying.

[997] I see what you're saying, but you need to get the three to six months in place first, and then when you sell the house, that money is going towards the next house.

[998] Okay, so that whole chunk goes straight toward the next house.

[999] Because you're going to need it, right?

[1000] Well, how much are you trying to put down?

[1001] Well, we would only need about 70 ,000 to put down.

[1002] The house we're looking at is around 300.

[1003] And how much, sorry, you told me this, but I missed it.

[1004] When you sell the house, how much will it bring in total?

[1005] 2 .30.

[1006] No, no, no. How much will you take home?

[1007] Oh, we should have about 110.

[1008] 110.

[1009] So you're saying, and that's after fees, and you've considered all that?

[1010] No, that's before.

[1011] Okay, so let's consider fees and stuff.

[1012] let's let's knock off 15 all right and let's say that you let's say you bring home 95 so you're saying hey we don't we didn't we never plan to put that full 95 down and we can take some of that and put it as our emergency fund right well what what would have the 20 % listen the way my mind works I'm like I want to put the full 95 % down or the full 95 ,000 down 90 % okay how long will it take you to save up three to six months?

[1013] Maybe two months.

[1014] I would listen.

[1015] Listen.

[1016] Save up that three to six months.

[1017] It's all the same.

[1018] You know what I'm saying?

[1019] It's a big pool of money and I see what you're trying to do.

[1020] You're kind of trying to shift it so you can move faster.

[1021] I would rather you have that extra $15 ,000 to put down on this mortgage.

[1022] It's, in the long run, you're going to thank yourself for it.

[1023] And it's only going to, it's not like it'd be one thing if you said, Jade, it's going to take a six more months to save up or another year to save up, that'd be maybe a little different.

[1024] I might change my answer.

[1025] Maybe not.

[1026] But in this case, it's two months.

[1027] Like, just wait, two months.

[1028] Right.

[1029] You know, and then you've got more money.

[1030] You've got $15 ,000 more in your pocket.

[1031] And that's going to go towards your mortgage.

[1032] I love that idea.

[1033] Okay.

[1034] All right.

[1035] Well, thank you.

[1036] You're welcome.

[1037] That's all my problem.

[1038] Claire.

[1039] Did you get what you needed from Jade?

[1040] Do you need anything for me at all?

[1041] I did.

[1042] I mean, anything?

[1043] Nothing?

[1044] Nothing?

[1045] Your cigarettes gone out.

[1046] No, I don't think I do.

[1047] Oh, great.

[1048] I see how this is, Clara.

[1049] I see how this is.

[1050] No, we love you, Claire.

[1051] Thank you very much.

[1052] Merry Christmas.

[1053] Yeah.

[1054] She didn't want to ask me anything.

[1055] Listen, Ken, in that sweater?

[1056] I get it.

[1057] I know.

[1058] I think it's intimidating, you know.

[1059] It puts off a, puts off the wrong vibe, I guess.

[1060] It's very, it's very into me. Alex is up in San Antonio, Texas.

[1061] Alex, how can we help?

[1062] Yes, sir.

[1063] good afternoon.

[1064] I owe my sister $20 ,000 that I would want, I would like to pay her back.

[1065] She loaned me his money earlier in the year and we invested the money.

[1066] It didn't pan out.

[1067] So I was calling for your opinion on getting a loan.

[1068] And if so, what wish would be the best out of the Okay, hold on a second.

[1069] So you got your sister to give you $20 ,000 for some type of business investment.

[1070] What was the investment?

[1071] Yeah, what was it?

[1072] It was property, but it's out of the country.

[1073] It's in Federoom.

[1074] Okay.

[1075] We've got a little dicey, and it hasn't panned out.

[1076] What does that mean?

[1077] I would like to pay her the money.

[1078] I know.

[1079] What does that mean it didn't pan out?

[1080] Well, we've run into some obstacles, legal obstacles.

[1081] Evidently the people that we were dealing with were in the entire.

[1082] honest with us.

[1083] So the money's gone and you have no recourse.

[1084] Right.

[1085] What's your, how's your sister taking it?

[1086] Well, she's been pretty patient with me. She's, she's not harassing me at all or keep reminding me in any way.

[1087] When were you supposed to pay her back?

[1088] Like what was, tell me the initial plan, because I'm trying to gauge what your timeline is here.

[1089] We're supposed to fare within a couple of months.

[1090] It's been almost a year, and it's gone just a little bit longer than I would want it to.

[1091] Got it.

[1092] Okay.

[1093] But you're broke.

[1094] You're broke, and you're thinking now, I got to get this monkey off my back with my sister, so I'm going to go get a loan, and I'm then going to just pay the bank back.

[1095] And I just think that's ridiculous.

[1096] I'd rather you be spending all of your time and effort just paying your sister back.

[1097] You don't need to go to a bank or a credit union or some private loan shark type situation where they're going to charge you enormous interest rates just start paying her back if could you pay her a thousand dollars a month what would need to be true for you to pay her a thousand dollars a month or two thousand dollars a month could that happen yes i could pay a thousand possibly two thousand if we really discipline ourselves then start doing it like this is your sister man she loaned you the money man up start paying it back what was that patient enough with me and I would I would prefer to just pay her, pay her because you can't pay her $20 ,000 so pay her what you can.

[1098] Because here's what can happen.

[1099] I want to lay out two sides of this.

[1100] Unless you tricked her, right, when you said, hey, sis, let me borrow $20 ,000, I have this real estate thing that I want to invest in.

[1101] When you say the word invest, any person knows, okay, there's a chance I could make money and then there's a chance I can lose money.

[1102] So she, I'm guessing she knew going in there was a chance that you would lose this money.

[1103] And if that was the case, she wouldn't get her return back as quick or she wouldn't at least get the money that she invested back as quickly.

[1104] So there is part of that.

[1105] There is part of that.

[1106] That's true.

[1107] You both agreed on this thing.

[1108] I think it was a terrible agreement, but you both agreed to it.

[1109] So there is part of that where it's like, okay, like you said you were investing in this.

[1110] It didn't pan out.

[1111] So it's going to take a minute to get the money back.

[1112] I'm afraid of you getting a loan because.

[1113] I think if you get a loan it's going to cause you to move slower on this than you need to because as Ken said the monkey's off your back now you can just be willy -nilly with it.

[1114] When it's your sister you're going to move, you know, move, I don't know if I can say you can move hell and earth to get this money right?

[1115] And so I want that kind of intensity for you to pay her back because you don't like this and I like that you don't like it because that's what's going to make you move and you need to move my brother.

[1116] And let me tell you something if you go get a loan, that interest payment is going to be more punishment for something that you already did that was dumb.

[1117] Don't multiply dumb.

[1118] Learn from the stupid mistakes.

[1119] We've all done them.

[1120] Move forward.

[1121] Start paying or what you can each month.

[1122] You'll get through this.

[1123] This is The Ramsey Show.

[1124] Welcome back to The Ramsey Show.

[1125] I'm Ken Coleman.

[1126] I'm joined by Jade Warshaw.

[1127] And we've for years and years and years decades with coaching people to win with their money.

[1128] And a big part of it is budgeting.

[1129] Every dollar, the world's greatest budgeting tool, saving not.

[1130] money.

[1131] And so this segment is all about you saving money in the holiday season.

[1132] I turn it over to my unbelievably qualified Budget Queen herself.

[1133] Jade Warshaw has got a plethora of things here that I get to sample.

[1134] Take it away.

[1135] Man, okay.

[1136] So you're right.

[1137] I love it.

[1138] We're doing this money thing.

[1139] It's that time of year.

[1140] It's the holidays, Ken. Parties is what I'm talking about.

[1141] Christmas parties, New Year's Eve parties, they're all over the place.

[1142] And you want to participate.

[1143] Even if you're in Baby Step 2, paying off debt, you want to find a way to participate.

[1144] And the number one thing, I would take a poll if you want, the number one thing, when you go to somebody's house and you're like, I got to bring something.

[1145] It's a bottle of wine, right?

[1146] Let me bring a bottle of wine.

[1147] But then your mind immediately goes to, okay, like, I only spend like $7 to $10 on a bottle of wine, but I don't want to walk in there, you know, with a barefoot, you know, the barefoot with a yellow tail, right?

[1148] So, do I need to spend $30?

[1149] And honestly, can they really tell the difference?

[1150] Can you tell the difference, Ken, between an expensive bottle?

[1151] Let's find out.

[1152] It's about time.

[1153] This is a $30 bottle of wine that was brought to me in my home.

[1154] All right, I'm not going to, so when you pour it, I don't want to look.

[1155] I feel, I'm going to look this way.

[1156] Because I want to be able to figure out if I can tell.

[1157] Because if I see you pour it, then I'm cheating.

[1158] So this is the, it's a $30.

[1159] of wine that somebody brought me compared to my favorite bottle of wine, which is $9 .99.

[1160] You're kidding me. 999?

[1161] It's my favorite.

[1162] It's called Apothic Red.

[1163] Now, Ken...

[1164] Oh, yeah, yeah, okay.

[1165] Have you poured it?

[1166] Yes.

[1167] Drink the first one.

[1168] I know which is which.

[1169] Taste it.

[1170] I always have to do the sound effect.

[1171] Kills the guys in the booth.

[1172] That's pretty good.

[1173] That's pretty good.

[1174] Okay.

[1175] I need to...

[1176] No, no, no. You're not wiping it.

[1177] You're washing it down already.

[1178] I was going to eat something.

[1179] Okay, here we go.

[1180] That's a different portion.

[1181] now this one is much smoother without question which one did i pick you don't know you picked my favorite i picked the ten dollar wine you picked the ten dollar wine the ten i'm not kidding you you picked the ten dollar wine over the thirty dollar wine i have no idea wow okay so if you're looking for a good one disappointed in my palate ten dollars apothec red okay i'm going to hold on these two over here for the commercial break so what i put those right over here the reason it's better it's because it's a blend.

[1182] So if you're going to get a cheaper bottle of red, go for the blend.

[1183] Don't go like a cabernet or a limel.

[1184] $9 .99.

[1185] $9 .99 are you out of your mind?

[1186] I want to add a little value to this because you're the budget queen.

[1187] I would take Jade's bottle and I would show up with pride to the party and just present it and say, this is one of my favorite wines.

[1188] It's a blend.

[1189] Say a little something about it.

[1190] They don't know it's $10 unless they look it up.

[1191] I love it.

[1192] All right.

[1193] I got to turn the other way.

[1194] Now, I do think that there's a little bit more.

[1195] I'm not a big white wine guy.

[1196] With the white wine kind of deal.

[1197] So Ken, I just...

[1198] I don't know.

[1199] I can't see what you're doing.

[1200] All right, here's the first one.

[1201] All right, now, what are I choosing between?

[1202] These are Pinot Grigios.

[1203] Okay.

[1204] It's very refreshing.

[1205] Okay.

[1206] Now try the next one.

[1207] By the way, one of these is a $38 bottle of wine.

[1208] I think it's 38.

[1209] It's my favorite pulet fuzet.

[1210] I like the flavor of the second one better.

[1211] Okay, flavor of the second one better.

[1212] In this case, you did pick the $30 wine.

[1213] Oh, all right.

[1214] Is it truly can a $25 difference or a $20 difference?

[1215] I would tell you no. So would you be okay if somebody brought this, this cupcake wine?

[1216] How much is this wine, guys?

[1217] I have a picture here.

[1218] This cupcake wine is, oh boy, it's cheap.

[1219] It's $9 .99, I think, as well.

[1220] $9 .99?

[1221] Yeah, there wasn't that big of a big difference.

[1222] There was not a big difference.

[1223] So let's be honest.

[1224] Admittedly, I'm not a Pino guy.

[1225] If you're truly concerned about this, what I suggest, just get a bottle of that, you know, martinelli's it's non -alcoholic it's that apple cranberry sparkling juice am i trying that next no but the point is there's no expectation when it's that it's like okay i know what it is you drop some cranberries in it's sparkly it's still festive and it's like under five dollars so if you're unsure what wine to bring bring the non -alcoholic kind martinelli's it's great the sparkling apple cranberry then there's there's no there's no stigma attached i'm trying to stay on focus so we need to go the next one this $10 wine is fantastic.

[1226] Now, I feel like my advice is going to be better in the next hour.

[1227] Listen, I didn't have any.

[1228] You're hogging at all.

[1229] It's my role.

[1230] I'm supposed to be the taster.

[1231] If you want to switch rolls, then that's your problem.

[1232] No, I'm going to do mine off camera.

[1233] All right.

[1234] What do we got next?

[1235] So if you're going, if you're hosting, you're like, Jade, I'm not a wine thing.

[1236] I'm not doing the beverage.

[1237] What else should I bring?

[1238] Sweet snacks.

[1239] I was going to go with the cheese and crackers next, Ken?

[1240] Oh, I apologize.

[1241] Cheese and crackers.

[1242] Cheese and crackers.

[1243] Now, here's the thing.

[1244] Well, let me be a good co -host.

[1245] There you go.

[1246] If you're going to do it, buy a block of cheese yourself and grate it and slice it yourself, you're going to earn so much more money back into your pocket.

[1247] Okay, if you buy a block, you can buy a 16 ounce block of store brand cheese and it's 43 cents an ounce.

[1248] Really?

[1249] But if you buy it pre -sliced, you're paying almost double per ounce, okay?

[1250] It takes two seconds.

[1251] It takes two minutes to just slice it up yourself.

[1252] and it tastes better.

[1253] See if you can tell which one.

[1254] Oh, okay.

[1255] So we have pre -sliced and then jade sliced.

[1256] Yes.

[1257] Oh, so these are just for me to sample.

[1258] Yes.

[1259] All right, I'm going to skip the cracker and go right to a little bit of the cheese.

[1260] Okay.

[1261] You're skipping the cracker?

[1262] Wow.

[1263] You know, for time.

[1264] I want to get right to that, you know.

[1265] There you go.

[1266] Not bad.

[1267] And then try the other one.

[1268] Can you tell the difference?

[1269] Indiscernible.

[1270] Indiscernible.

[1271] I can't tell a difference.

[1272] But you saved money.

[1273] And I always say, like, listen, it's store brand cheese.

[1274] Is it the same cheese?

[1275] It's the same.

[1276] One is the store of brand you saved $2 by slicing it yourself.

[1277] And I always say, like, buy store brand.

[1278] Don't go crazy on the cheese.

[1279] If you want to spend money, get fancy crackers, okay?

[1280] The crackers are what makes the plate look pretty.

[1281] They're what give it like some...

[1282] Have you seen the movie for Christmases?

[1283] Yeah, who hasn't?

[1284] You can always go spray cheese.

[1285] No, that's disgusting, Ken Coleman.

[1286] I know, that's not even real cheese.

[1287] People in the lobby are laughing, though.

[1288] People in the lobby thought that was funny.

[1289] You know, horse devours anyone?

[1290] It's one of my favorite scenes.

[1291] Of course to herbs.

[1292] All right.

[1293] Now, let's talk about dessert.

[1294] If you really, to me, if you bring a dessert, if you really want to look like you did something but not really do something, bring a dessert.

[1295] Now, here's the thing.

[1296] If you go to Kroger, you go to Publix, you go to Hy -V, wherever, and you get something out of the bakery.

[1297] Do not bring it to the party in that old, you know, that plastic tin that it comes in that's like when you try to open it up.

[1298] You know what I'm talking about?

[1299] Great sound effect.

[1300] I wasn't ready for that.

[1301] Don't bring it.

[1302] Put it on a nice platter.

[1303] Oh, this is a very nice platter here.

[1304] But better yet, just make it yourself.

[1305] So we have two brownies here, Ken. Which I can't tell.

[1306] One is made by you?

[1307] One is made by me. It's a little bit more rustic.

[1308] It's a little more homey, but it also looks very fudgy and delicious.

[1309] The other one is a store brought.

[1310] And by the way, I was able to make brownies at home for $2 cheaper than buying them.

[1311] And I got more out of it, okay?

[1312] The store -bought ones, I spent $4 .4 .4.

[1313] $14 or something like that on them?

[1314] So we're running short on time.

[1315] So I just have a bite of each.

[1316] Yeah, tell me, which is best.

[1317] Which is best.

[1318] You tell me, and get into it, Ken. Get involved.

[1319] I don't know if this is store or you, but it looks good.

[1320] I got some powdered, something on the top.

[1321] Get into it.

[1322] Oh, oh, Lord.

[1323] Oh, that's unbelievable.

[1324] I don't have enough time.

[1325] James, you have to come in here and help me. Now, try that old crusty one over there, and you tell me which one.

[1326] I think she gave it away.

[1327] It's light brown.

[1328] tell you.

[1329] The one I just had, it's very moist.

[1330] It's fantastic.

[1331] Listen, don't give me a light brown brownie.

[1332] What's wrong with you guys at Publix?

[1333] It's not the same.

[1334] It's not even close.

[1335] Whatever you got in there, that was very fudgy.

[1336] It had moisture in it.

[1337] In the sense, this is dry.

[1338] If you want my brownie recipe, go to Jade Warshaw on Instagram.

[1339] I'll post it this weekend.

[1340] Yeah, I'll post it.

[1341] How long is it take you to make those?

[1342] That's what people want to know.

[1343] Five minutes.

[1344] You make those brownies in five minutes?

[1345] It's all the ingredients.

[1346] Yes.

[1347] You put all the ingredients in one bowl.

[1348] There's no steps.

[1349] You put it all in one bowl, mix it up, put it in the oven.

[1350] They cook for 45 minutes.

[1351] It's easy.

[1352] Okay?

[1353] I'm going to show you guys how to make them.

[1354] Sam, do you like these?

[1355] I'm going to tell you, this man is a lucky man. He's a lucky man. It's amazing.

[1356] He's not 600 pounds.

[1357] My 600 pound life.

[1358] Folks, I'm not just saying this because she's my friend and coworker and co -host.

[1359] This is the best brownie I've ever had.

[1360] Jay, seriously, this recipe.

[1361] You're not the first to say that, Ken. At Jade Warshaw on Instagram, ladies, go get the recipe.

[1362] She's going to post it tonight.

[1363] I've got to go find a glass of milk.

[1364] We've got to pay some bills.

[1365] Don't move.

[1366] This is The Ramsey Show.

[1367] From the headquarters of Ramsey Solutions, this is the Ramsey Show.

[1368] It's where we help you win in your life, specifically in your money, in your work, and in your relationships.

[1369] The phone number is AAA 8255 -225.

[1370] I'm Ken Coleman.

[1371] Jade Warshae joins me. Triple -8 -8 -25 -5 -2 -25 is the number we'd love to coach you up.

[1372] Merry Christmas, everybody.

[1373] Let's get two at this hour.

[1374] Chris is joining us in South Dakota.

[1375] Chris, how can we help?

[1376] How's it going, guys?

[1377] We're having a blast, man. What's going on with you?

[1378] Awesome.

[1379] Well, earlier this week, my wife and I paid off the rest of our debt.

[1380] Whoa.

[1381] Come on.

[1382] All right.

[1383] Let's celebrate.

[1384] How much?

[1385] In total.

[1386] Let's see.

[1387] here.

[1388] It was 40 for my pickup, another 28 for her car, and a few as an end along the way, so I'd say 70 ,000.

[1389] Nice.

[1390] It's up in about three years.

[1391] Way to go, Chris.

[1392] How's that feel?

[1393] Feels really good.

[1394] Man, your debt -free Christmas.

[1395] That's going to be a special day, isn't it?

[1396] Yeah, so we told each other we were going to do for our Christmas gets to each other this year.

[1397] We're just going to pay up, pick up, and we'll call it a wash. Oh, man, that's great.

[1398] That's awesome.

[1399] Congrats.

[1400] What can we do for you today?

[1401] So I don't know the baby steps as well as I should.

[1402] However, my predicament now is that we're debt -free.

[1403] The house is paid off as well.

[1404] Wow.

[1405] I want to start farming.

[1406] It's always been my goal, but it's very expensive to start farming.

[1407] So do I invest my money into my retirement, or do I just start saving up little by little and put down on some makers?

[1408] You can do both.

[1409] You can do both.

[1410] Congrats number one on having no home payment.

[1411] You left out that little nugget of wonderful information.

[1412] So assuming, let's let me kind of pull us back a little bit.

[1413] So you have no consumer debt.

[1414] You know, you have no home debt.

[1415] Do you have any other money saved besides retirement?

[1416] Like an emergency fund.

[1417] We've got, say, $85 ,000 in the bank.

[1418] 85 ,000 in the bank.

[1419] So that's, that's, that's.

[1420] I'm assuming well beyond three to six months of expenses.

[1421] How much do you earn every year?

[1422] Myself is about 100 ,000.

[1423] And my wife is about another 40 to 45.

[1424] Okay.

[1425] So you guys are $145 ,000 a year.

[1426] You got $85 ,000 in the bank.

[1427] So let's really look at this.

[1428] Is there a way, if you had to say three months of expenses, basic expenses, what is that for you?

[1429] Oh, boy, it's now the pickups are paid off.

[1430] It's minimal.

[1431] Exactly.

[1432] say cell phone payments are 200 um i'd say probably 500 a month if that for everything including all of our utilities oh wow that doesn't include groceries though yeah you need to think about your yeah no that doesn't include groceries so our family of three i don't know 300 bucks a month okay let's let's round up to two grand a month yeah let's say two or three thousand dollars a month all right and so that's nine or ten thousand just for a good measure let's say you got let's see you let's say you keep $20 ,000 as three to six months of expenses, all right?

[1433] And then you can turn around and take that other $65 ,000 and now we get to decide.

[1434] Okay, we got $65 ,000.

[1435] Are we going to put this towards land or real estate or whatever it is that you've said you want to do?

[1436] So we're going to earmark that over there.

[1437] You and your wife can decide what happens with that money.

[1438] The next thing I want to make sure you have in place is with your incomes, are you guys investing 15 % of your income every month?

[1439] So not yet.

[1440] I took a new job here recently, and I'm not allowed to have a four.

[1441] It's not allowed as a wrong term.

[1442] They don't offer a 401k until I've been here for about a year.

[1443] Okay.

[1444] So I still have eight months, roughly, until I can start investing in that.

[1445] I've had a 401K before my previous jobs.

[1446] Okay.

[1447] My wife does like a 403B.

[1448] Okay, great.

[1449] So, I mean, she's putting in, she takes care of insurance.

[1450] I mean, after tax, it's not much of a paycheck that she brings home.

[1451] Well, between the, so they're automatically pulling some into her 403B between the two of you.

[1452] And this might mean that you need to go and open some Roth IRAs between the two of you.

[1453] I want you investing 15 % of your combined income each month.

[1454] So that's, when you walk away from here, that's the answer to the one question of, hey, do we need to start putting towards retirement?

[1455] The answer is yes.

[1456] And the answer is that 15 % of you guys's income each month.

[1457] So whether it's going into her 403B, I'd rather you guys start with a wrong.

[1458] Roth IRAs and do those first.

[1459] And then if you were able to max those out and there's still money left, then, you know, move it on to her 403B.

[1460] And then by then if you still have money left over, you know, you've got your 401K that's opening up.

[1461] So that's kind of the order of business that I would do that.

[1462] And then again, you've got this $65 ,000 there that you can say, okay, with any extra income and money that we have, we can add to that and we can start piling up cash in order to make your next real estate or land purchased.

[1463] Is that, is that fun?

[1464] It does.

[1465] However, the way I've been thinking about it is buying land at, let's say, $7 ,000 to $10 ,000 an acre here.

[1466] That's my next career goal.

[1467] I want to be a farmer.

[1468] But how to pencil it out with the interest rates right now at the bank trying to buy loans and try to get land, it just doesn't pencil out.

[1469] Yeah.

[1470] So I'm wondering if instead of doing the 15 % for my retirement, I mean, land would be a retirement option as well.

[1471] If I ever had to sell it or if I rent it out, that would bring a good living as well.

[1472] it would but it is 15 % for that It is but you want that portfolio to be balanced You don't want it all in real estate Just like you see what I'm saying You do want to have a nest egg that you know You can get too cash We're not waiting for a buyer We're not waiting for like you're drawing money off of that monthly And so that is really important for you to have Because there is going to be a time where you're not working And you want this money coming And you don't want to just depend on social security That's right So it is important to have a nest egg in investment accounts.

[1473] And Chris, listen, you know this far better than I, but I read enough about America's farmers and the business itself.

[1474] It's a very tough business and has a tremendous amount of risk involved.

[1475] So you don't want to take the 15%, which is baby step four, and say, well, I'm going to put it into the land.

[1476] That's a highly speculative business.

[1477] You would agree with that statement?

[1478] I would.

[1479] Yeah.

[1480] So let's, real quick, we only got about a minute and a half.

[1481] I just want to get some quick numbers.

[1482] What kind of acreage would you like?

[1483] If you had the money now, what size, how many acres are you looking for?

[1484] I'd love to have a thousand acres.

[1485] Yeah.

[1486] So, I know that's going to pick a lifetime of working to get up to that.

[1487] Yeah, but what kind of farming you want to do?

[1488] Just corn and soybeans.

[1489] So what's the minimal amount of acreage that you need to be able to test this idea?

[1490] So testing, I was just going to try to buy 40 acres just to start, and I'd have my full -time job.

[1491] And then, you know, gradually, after I've got the 40 acres paid off, I want to buy that up front so I don't have to, you know, go to a bank.

[1492] So I like this idea.

[1493] I'm going to keep buying more.

[1494] All right.

[1495] So now we've got a number in our mind, right?

[1496] At $7 ,000 an acre, that's $280 ,000, right?

[1497] Yep.

[1498] Okay.

[1499] You know, what, I challenge the 40 acres.

[1500] I'd go, you know, listen, we talk about people.

[1501] testing side hustles all the time on social media, but listen, man, you can still test something with dirt and seeds.

[1502] So I guess Jade's giving you great financial advice.

[1503] Hopefully you do exactly what we tell you to do and invest for yourself, because I don't want you to sacrifice your long -term investments in a speculative farming business.

[1504] However, could you save $150, $200 ,000, buy a smaller plot?

[1505] Let's grow it.

[1506] Let's test it.

[1507] We pay cash.

[1508] No risk.

[1509] We got the land that we could resell.

[1510] I think this is doable.

[1511] I guess that's the point.

[1512] I wanted to give you a hug and an encouragement to say, I think you could get in this game for a lot less money than you think and see if it is the long -term play.

[1513] I would challenge you to think about that in the days ahead.

[1514] But we're proud of you.

[1515] Great job.

[1516] Getting debt free.

[1517] This is The Ramsey Show.

[1518] Welcome back to The Ramsey Show.

[1519] I'm Ken Coleman.

[1520] Jade Warshaw joins me. Merry Christmas, America.

[1521] Thrilled that you were with us.

[1522] We're here to help you win in your life.

[1523] Your money, you're working in your relationship.

[1524] Triple -8 -8 -25 -5 -2 -25 is the phone number.

[1525] Let's go to Megan, who joins us now in Jacksonville.

[1526] Megan, how can we help?

[1527] Hi, I'm a brand -new follower, and over just this past week has listened to the Total Money Makeover audio book twice.

[1528] Wow.

[1529] My husband and I have just begun applying its principles to get out of debt and change our financial future.

[1530] Cool.

[1531] And after reducing our emergency fund and liquidating our assets, We'll have about 14 ,000 to dump into debt, paying off multiple creditors.

[1532] So soon it'll be just one creditor, aside from the mortgage.

[1533] So we'll only have one piece of debt, and I would just like advice regarding this particular piece of debt, if it makes sense for our family to pay it off and keep it for the long haul or sell it.

[1534] What's the piece of debt?

[1535] Is it a car?

[1536] Yes, it's a van.

[1537] It's a 2020 Ford truck.

[1538] transit 15 passenger van.

[1539] Wow.

[1540] Why such a big van?

[1541] Well, we are a family of eight.

[1542] So we have my husband and I, we have six sons, ages two up to 11.

[1543] Bless your heart.

[1544] My goodness.

[1545] You are, you need some rest.

[1546] Yes.

[1547] So tell us the details on the van.

[1548] How much do you owe on it?

[1549] Yeah.

[1550] So, I mean, we bought it in March, which it was crazy.

[1551] the market was insane.

[1552] Painful time to buy, but we were kind of maxed out in our prior eight -seater van, and it was just on its last leg.

[1553] So what did you spend on it?

[1554] But, well, that one has, it was paid off.

[1555] That one was paid off.

[1556] But the one that we have now, so the one that's in question, our balance right now is $47 ,663.

[1557] Okay.

[1558] 47 ,663.

[1559] Okay.

[1560] And what?

[1561] What's it worth if you were to sell it private sale?

[1562] So I Kelly Blue booked it, and its value is about 56 ,600.

[1563] 56 ,600.

[1564] Okay.

[1565] So the question then is, are you able to get your hands?

[1566] Because what you could do, if you wanted to, you've still got the 14 ,000.

[1567] You could get the difference cleared up.

[1568] And you could sell this thing.

[1569] It's a $10 ,000 difference.

[1570] Sell this thing.

[1571] and then put whatever, I mean, what would the next step be?

[1572] Do you guys have anything?

[1573] Do you have other vehicles for the family, is my question.

[1574] This is our only vehicle.

[1575] The only vehicle period?

[1576] Yes.

[1577] Okay, so what would it cost to get, you said before you had an eight passenger van, which is great.

[1578] What would it cost to get another used eight passenger van?

[1579] Well, it varies.

[1580] I mean, there's a lot more options.

[1581] it's obviously a lot, a lot cheaper.

[1582] If the advice was to sell it, then that's one thing that I would be asking, what should I be looking for?

[1583] I mean, should I be looking for something, you know, trying to go as cheap as we can, that, you know, will be more short -term or, you know, just trying to...

[1584] Here's my answer to that.

[1585] I think that I do want you out of this vehicle.

[1586] I think it's more than you need, and it's too expensive for you.

[1587] In order to say what you need and what you can get.

[1588] Can you tell me what your income is?

[1589] My husband, we make, well, our annual income is $120 ,000.

[1590] Okay, 120.

[1591] So our general rule of thumb is we don't want any more than half of your annual income in vehicles.

[1592] Okay?

[1593] So between the two of you, you could really consider this two ways.

[1594] That's $60 ,000 split between the two of you.

[1595] If this is your only vehicle and you plan on being a one vehicle family, there is a world that you could pay this off and just keep this as your vehicle if you think you can pay it off in two years or less that's your bag if you want to do that if you're like jade i want to get out of debt i don't want this thing we bought too much car then there's a world where you say okay as as we're working to pay off debt we know that we're going to have to fill the gap on this because there's a $10 ,000 upside down and you're then going to need some money somewhere to buy an eight passenger van that's used right so you've got some options here and you've got to decide ultimately can you can you kick it and pay this thing off super fast or do we need to really consider someone can what you're looking at vehicles what do you see here's a question for you um can you fit eight people can you do the six boys in a traditional third row minivan um we could yes i mean that is what we had before um the question was and kind of the reason that we also wanted to go up because we weren't sure whether or not we would expand our family anymore in the future.

[1596] And it was just kind of, well, we'd rather have, you know, at least have the space for it and not have to then at that point.

[1597] Right.

[1598] And I understand that.

[1599] But now, but now you're in agreement with Jade and I that, I mean, we probably shouldn't have bought a van for the future.

[1600] We should buy a van for the now, yes?

[1601] Um, that the other benefit, like I said, um, we had, we moved out of the city.

[1602] We're a little more rural now and having that extra space for when we do go into town and being able to get groceries and all of those things.

[1603] So I don't want to try to talk you out of it, so I'll answer Jade's question.

[1604] I've got right here a 2015 Ford Transit Passenger 150 XL medium roof with the sliding room passenger side door.

[1605] I feel like I can use car sales in James.

[1606] But now this is in Murfreesboro.

[1607] All right.

[1608] So this is Tennessee, but it's $26 ,900.

[1609] It's got $78 ,000 miles.

[1610] But it's 26.

[1611] That's a lot less than the, what, 65, no, 47 is what you owe on the current one.

[1612] So you guys can definitely find a van that large for half.

[1613] She can, but she's also got to clear the $10 ,000 difference.

[1614] No, I know.

[1615] And I'm letting you help her on that, but we can.

[1616] can at least get out of that car payment.

[1617] Well, I'm glad you found that because now that I'm looking at that, I'm like, all right, that's there.

[1618] She'd have to save up the 26 ,000 there plus the 10 ,000 to get right.

[1619] So she's already at 37 ,000.

[1620] That's 10 ,000 less than where she's at now.

[1621] I can do it one better.

[1622] I mean, I was looking at minivans in the 15s and 16s.

[1623] Here's one in Jacksonville, 2019 Dodge Grand Caravan, 35 ,000 miles, 198.

[1624] That's not bad.

[1625] so for the now that's not bad here's where i'm at and there there's not a bad decision here um because your debt right now is minimum you've got the 14 000 you'll knock it out and the only debt left is this right so if i'm in your shoes other than our mortgage but that's another if i were in your shoes um laid we've laid out all the information and now i'm going to tell you what jade warsha would do if i were in your shoes i would keep this vehicle and paid off this year in one year because it's your only vehicle it's your only vehicle it's less than, it's less than half of your take -home pay, like for the year, right?

[1626] And it's your only one.

[1627] I like that.

[1628] I'm going to keep this car.

[1629] It's good.

[1630] It's serving a purpose.

[1631] It's going to get you towards the future.

[1632] You like it.

[1633] And the other options aren't enough of a payoff for, in my opinion, to go through the trouble.

[1634] It's four grand a month to knock it out in a year.

[1635] Knock it out in a year.

[1636] Four grand a month.

[1637] Do you like that?

[1638] Yeah.

[1639] Yeah.

[1640] I mean, not yet.

[1641] I was, and it's something that, you know, there was that security.

[1642] I mean, it was expensive, but I mean, we got it with only 13 ,000 miles on it.

[1643] Listen, you're not going to make me feel good about the fact that you went out and got a car note now.

[1644] Yeah.

[1645] But you're in it now.

[1646] We're learning.

[1647] You're in, exactly.

[1648] You're in it now.

[1649] Pay it off.

[1650] And make me the promise that next time you guys, when it's time to upgrade, when it's time to get another car, stack up that cash because I don't want you guys in car.

[1651] I don't want you in car debt ever again.

[1652] The car note is the difference between the middle class and the wealthy class.

[1653] all right.

[1654] That's the money right there.

[1655] That people, you know, it's, you need that money.

[1656] You need to invest it.

[1657] That's where your kid's college is.

[1658] It's all wrapped up in that car note.

[1659] So just you and your husband say, all right, we got one out of it, but we're not borrowing money again on cars.

[1660] I'm proud of you guys.

[1661] Yeah, absolutely.

[1662] You guys are going to win.

[1663] I'll just knock it out.

[1664] That's right.

[1665] Look, get gazelle intense on knocking out that car payment.

[1666] And when you guys have singular focus on that, you'll be surprised, all the good stuff that will start to happen when you think, okay, let's save a buck here, let's put it towards the car.

[1667] Next, you know, you guys have a paid -off van, and, you know, I put some more money in the bank before I have another kid.

[1668] I just wanted to throw that in there.

[1669] Listen, Ken, you were used car salesman over there.

[1670] Ken's car lot.

[1671] I like, because people need to know their options.

[1672] Listen, you doing that helped us make the right choice for her.

[1673] There you go.

[1674] Hey, listen, money advice, use car advice, whatever you need.

[1675] We're here for you.

[1676] This is the Ramsey Show.

[1677] Welcome back, America.

[1678] You are listening to the Ramsey Show.

[1679] I'm Ken Coleman, Jade Warshaw, joins me this hour.

[1680] And it's such a privilege to be a part of this show that helps so many people.

[1681] And I want to just kind of give you a snapshot of where we are as we wrap up 2023.

[1682] We have done 242 live shows.

[1683] We've talked to 3200 -plus callers.

[1684] And we've done 184 debt -free screams and get this.

[1685] Ready for this?

[1686] I wish we had a ticker board for this.

[1687] Totally.

[1688] Thank you for the drum roll jade 36 million 59 ,064 and don't forget the 47 cents and so what an unbelievable year and so we keep going on that total jade because in the lobby of Ramsey Solution standing on the debt -free stage are Donald and Letitia welcome hello and I assume you're here to do your debt -free scream is that correct that's correct Oh, boy.

[1689] Let's go.

[1690] Let's hear the story.

[1691] All right.

[1692] How much debt did you guys pay off?

[1693] We paid off $152 ,000.

[1694] How long did that take?

[1695] That took us approximately 30 months.

[1696] 30 months.

[1697] And what was your range of income during that time?

[1698] The range of income, we started off at about 120 and we ended off at about 165.

[1699] Wow.

[1700] Nice.

[1701] What do you guys do for a living?

[1702] I actually have my own lawn care landscaping company and my wife uh she works at the local hospital um and revenue integrity excuse me and uh but really she does everything you know she knew like as a photographer she do t -shirts she actually's an author she does it all okay i like that letitia so was that the is she responsible for the uh 45000 dollar bump or was this a partnership in raising our income uh yes she actually have um a chair rental a throne chair rental business that she started a couple of years back.

[1703] Nice.

[1704] And that's what actually gave us the bomb.

[1705] Did you say a throne chair rental business?

[1706] Yes.

[1707] So if I want a queen's chair, I can rent it from you.

[1708] Absolutely.

[1709] Come on somebody.

[1710] Okay.

[1711] Don't get her too excited about this.

[1712] That's going to show up in the office one day.

[1713] Is this for like parties?

[1714] Yes, like weddings, baby showers, birthday parties.

[1715] A lot of pastors use it for their pastor's anniversary.

[1716] Okay.

[1717] So it's used for a lot of things, photo shoots.

[1718] Listen, America, don't tell me you can't make money.

[1719] This woman is renting a throne, okay?

[1720] I know.

[1721] That is the American dream right there.

[1722] I love that.

[1723] Love it.

[1724] And you guys are from the New Orleans area, is that right?

[1725] Oh, yes.

[1726] Actually, from Pontchia Tula, we're like 45 minutes north of New Orleans.

[1727] Okay, gotcha.

[1728] All right.

[1729] Well, fantastic.

[1730] Okay, so what happened 30 months ago when you guys say, all right, we're going to go on this debt -free journey, and by the way, that's a lot of debt in 30 months.

[1731] I know.

[1732] It is.

[1733] Well, to be honest, I have heard.

[1734] heard about Dave a couple of years back.

[1735] And we was already kind of like on a journey without following the Dave Ramsey plan.

[1736] So we would actually get in, we'll pay off debt and then we'll get right back in it.

[1737] And we'll just be in this frizzilous cycle.

[1738] So what happened was COVID hit.

[1739] Yeah.

[1740] So for COVID, that was a blessing and a curse for us.

[1741] So what happened was I commute back and forth to New Orleans every day.

[1742] And I heard Dave on YouTube and I was a essential worker, of course.

[1743] Sure.

[1744] And he was just telling me how crazy I was and how stupid I was, you know.

[1745] So I had to get myself together.

[1746] So I go home and I go to my wife and I say, hey, listen, I have this plan.

[1747] I heard this guy on YouTube.

[1748] She's still shaking her head.

[1749] And I had to get her to buy in.

[1750] And I was so sold in Jade Ken. And she looked at me and she says, I'm not with it.

[1751] Uh -oh.

[1752] Uh -oh, Leticia.

[1753] Tell us more.

[1754] Tell us how did you get into it.

[1755] You know, he'd be like, Hey, let's watch Dave Rams.

[1756] I'm like, you watch it.

[1757] Tell me what he said.

[1758] Right.

[1759] Like, I don't want to watch that.

[1760] That's great.

[1761] And like, wait a minute.

[1762] You want me to watch what now?

[1763] Right.

[1764] I was like, you get the information and you give me a short script of it.

[1765] And so what he did was he began to like because it was COVID and it wasn't like we could do anything.

[1766] He worked a lot.

[1767] People still needed their grass cuts.

[1768] So he worked a whole lot.

[1769] So he was able to save about 10 grand.

[1770] Wow.

[1771] And he came home.

[1772] I think it was like three or four months he saved 10 grand.

[1773] And so he was like.

[1774] hey, pay these credit cards off.

[1775] And I'm like, with what?

[1776] And he was like, oh, I saved the money because I was listening to, you know, Dave Ramble.

[1777] And so I was like, oh, okay.

[1778] So, you know, I'm like, we'll have like this healthy competition going on.

[1779] And he always say, you know, I like to spend.

[1780] And so I was like, I'm going.

[1781] And so, you know, I had my businesses going and I was running specials like with my book specials and thrown chair rental specials.

[1782] I was running it.

[1783] And so I came home and I said, hey, guess what?

[1784] paid this credit card off.

[1785] And so we had a sheet on the wall and we would, you know, we constantly coming home and saying, I paid that one and we scratching it off.

[1786] So it became a healthy competition.

[1787] I love that.

[1788] And I stopped getting my hair and nails done.

[1789] I was wearing press on.

[1790] I learned how to do my own hair from YouTube.

[1791] Not the press on.

[1792] It's a sacrifice.

[1793] That's a deep, deep sacrifice.

[1794] I'm learning things right now.

[1795] Okay, I got to say this.

[1796] Donald, you're a genius.

[1797] You need to write a book for husbands That's what I've been trying to tell you I actually think you're a genius I'm like I try to force stuff You just were like all right I'm just gonna save up some money and surprise her You're a genius my man You should write a book All right Fans fun stuff What was the debt comprised of?

[1798] Curious The 152 Okay so we had a van that we financed That was 12 ,000 My wife actually had a Nissan Pat Finder that was 14 ,000 we had 28 ,000 in credit cards my wife had 38 ,000 in student loans and we actually paid off a home that was 60 ,000 Whoa!

[1799] Wait, so we have a paid off home in this?

[1800] We have a paid off home in this.

[1801] Whoa, is it your primary home?

[1802] No. You can tell a story.

[1803] Okay, so what happened was in the midst of before the pandemic happened, we were like I say, already on a journey to pay off debt.

[1804] So we acquired a mobile home that we say, hey, we'll make this rental property.

[1805] And in the midst of renovating, I was like, why don't we just live here and rent out of our house?

[1806] And there's more money we can save.

[1807] Interesting.

[1808] And so we lived in the moment home and renovated it.

[1809] And so, you know, that's what we did.

[1810] We were on our journey.

[1811] They pay rent.

[1812] We made money.

[1813] And we end up selling the home, you know, because the market is right.

[1814] Wow.

[1815] So we ended up selling the home and made $28 ,000 in profit off of their home.

[1816] Okay.

[1817] So now you're still in the airstream or whatever it is.

[1818] You're still on the mobile.

[1819] Yes.

[1820] And you own it free and clear.

[1821] Yes.

[1822] Wow, y 'all don't have a payment in the world.

[1823] And the greatest blessing of it all as well is because of we live in Louisiana where it's a hurricane state, they have a program called Restore Louisiana.

[1824] And so because we're in a mobile home and we did acquire some damages, Restore actually gave us a grant to get a brand new mobile home.

[1825] So we just was blessed with a brand new 2023 mobile home.

[1826] Goodness gracious.

[1827] Congratulations, guys.

[1828] So we are really doing great.

[1829] You know, y 'all are floating.

[1830] Yes.

[1831] And I got to point out, your nails look fabulous.

[1832] Thank you.

[1833] Yeah, absolutely.

[1834] Fantastic.

[1835] I didn't get these done.

[1836] All right, so we've only got a couple minutes.

[1837] Real quick, tell people what you believe the key is to getting out of debt.

[1838] It's discipline.

[1839] It's knowing that you are worth it, that you are worth being debt -free and not having to struggle and stress about bills.

[1840] The relief it is to be able to travel and take a trip without using a credit card is such an overwhelming feeling.

[1841] Like, it's just like, wow.

[1842] I never believe that we could really be dead free because you always hear people say you're gonna always have debt but to be able to go through the steps the sacrifice being talked about laughed at like y 'all really left y 'all house to live in a mobile home it's so rewarding because guess what we could do whatever we want now we're able to give substantially we're able to be a blessing and God is constantly pouring out his blessings to us because we decided to sacrifice a little so that we can live like no one else she's preaching I'm ready to do an altar call and take an offering.

[1843] I mean, I'm going to do it all.

[1844] Leticia, that's the final word, because that is so powerful.

[1845] You guys are on your way to being Baby Steps Millionaires, so we want to bless you with a copy of that book, Dave's latest book, Babyseps Millionaires, because that's the next chapter in your amazing story, from mobile home to millionaires.

[1846] That's your slogan.

[1847] I dig that.

[1848] And then we're also going to give you a copy of Dave's book, Total Money, Makeover, to gift to somebody else, because you guys have modeled the way and we know you're going to continue to bless people by modeling the way.

[1849] So thank you guys.

[1850] Okay, you got your son with you, so let's get him up there real quick.

[1851] Kelshan.

[1852] This is Kelshun.

[1853] How old is he?

[1854] 17.

[1855] 17.

[1856] All right, here we go.

[1857] We've got Donald, Letitia, Kelshund.

[1858] They paid off $152 ,000 in 30 months, making $120 ,000 to $165 ,000.

[1859] Take it away.

[1860] Let's hear your debt -free scream.

[1861] All ready, on three.

[1862] Three, two, one.

[1863] We are fantastic.

[1864] I love that story.

[1865] I mean, I got goosebumps.

[1866] Listen, I'm ready to shout.

[1867] That's all I'm saying, Ken. All right.

[1868] Let's go do it.

[1869] Let's go high five and shout with that fabulous family.

[1870] Hey, they did it.

[1871] You can do it as well.

[1872] We'll be right back.

[1873] This is The Ramsey Show.

[1874] Welcome back to The Ramsey Show America.

[1875] I'm Ken Coleman.

[1876] I'm joined by Jade Warshall.

[1877] The number for you to jump in on the conversation is Triple -8 -8 -25 -2 -2 -5.

[1878] Our scripture, The day comes from Luke 2, verses 7, 8, and 9, and she gave birth to her firstborn son, and she wrapped him in clothes and laid him in a manger because there was no room for them in the end.

[1879] And there were shepherds out in the field, keeping watch by night, and an angel of the Lord appeared to them, and the glory of the Lord shone around them.

[1880] Our quote today from Calvin Coolidge, a former president, he said, Christmas is not a time nor a season, but a state of mind, to cherish peace and goodwill, to be plenteous in mercy is to have the real spirit of Christmas.

[1881] President Calvin Coolidge.

[1882] That's great contribution.

[1883] Cool Cow.

[1884] Is what they called them, I believe?

[1885] I think.

[1886] You would know.

[1887] Thank you.

[1888] Thank you very much.

[1889] Colorado Springs, Colorado, is where we go.

[1890] Alex is up.

[1891] Alex, how can we help?

[1892] Hello.

[1893] How are you?

[1894] I'm doing great, actually.

[1895] So I have some good news, personally.

[1896] I recently made a pretty big life change.

[1897] I moved all the way across the country for a new job, and the, well, the income here is significantly better.

[1898] It's about twice as what I was making recently.

[1899] And I'm about to have a bunch of disposable income that I've never would have had before in my life.

[1900] And I want to begin building wealth and planning out my future.

[1901] The only issue is I still have some debt, but I also want to do some investing.

[1902] So I was just wondering, how would you recommend going about that?

[1903] Winning.

[1904] Listen, I'm excited for you.

[1905] You've got double the income.

[1906] You've got options now.

[1907] So how much debt do you have laying around?

[1908] So I have 9 ,500 in student loans.

[1909] Okay.

[1910] And that's it.

[1911] Oh, that's it.

[1912] Okay, great.

[1913] All right.

[1914] And what's your income?

[1915] What's this doubled salary look like?

[1916] Um, so I actually do two jobs.

[1917] I do a teaching job on the side.

[1918] My main job is 97 ,000.

[1919] And then with my teaching job, I'm in between about 5 and 10 ,000.

[1920] Okay, cool.

[1921] And what does that look like monthly?

[1922] Like, what do you bring in home each month?

[1923] About $8 ,500.

[1924] Okay.

[1925] That's pre -tax.

[1926] After taxes, it's going to be around $6 ,000.

[1927] Oh, around $6 ,000, you said?

[1928] Mm -hmm.

[1929] Okay.

[1930] So what would it look like?

[1931] Can you get this debt, this $9 ,500?

[1932] Can you have that gone in four months?

[1933] I could.

[1934] Okay, great.

[1935] So that's thing one.

[1936] Do you have any money or savings laying around?

[1937] Let me ask that first.

[1938] I do, actually.

[1939] In my bank account, I have about $8 ,000.

[1940] Oh, okay.

[1941] Well, then we're going to knock this out even sooner.

[1942] Wow.

[1943] Okay.

[1944] So what I'm going to want to watch.

[1945] walk you through is our series of baby steps, just in case.

[1946] I don't know how familiar you are, you are familiar you are with them.

[1947] But what we say is first step, you're just keeping $1 ,000.

[1948] Keep it aside right quick because we need a cushion.

[1949] We need a barrier between us in life if an emergency happens.

[1950] So out of that $8 ,000 today, I'd earmark $1 ,000 aside.

[1951] And then I'd take that $7 ,000 that's left and I would put it towards the student loan.

[1952] And if you can scrounge together, I know it's the end of the month.

[1953] So this might be in January.

[1954] If you can scrounge together that other 2000, knock it out.

[1955] And it's gone.

[1956] Okay.

[1957] And then, go ahead.

[1958] You go ahead.

[1959] So another thing I was wondering, though, is that I was hoping to invest in an IRA.

[1960] I was hoping to begin that.

[1961] We're getting to it.

[1962] 401K going.

[1963] Probably I have about 15 ,000.

[1964] But the IRA, I know that there are annual contribution limits.

[1965] And I was wondering, is it too late this year to hit that?

[1966] No, it's not.

[1967] So I'm going to get to that, but I want to make sure you understand it within our framework, okay?

[1968] Because there's, there's method to madness.

[1969] If you, everybody wants to build wealth and everybody wants to do that.

[1970] But if you don't do it in the right way, you end up taking steps backwards and we hate to see that.

[1971] So it's super duper important that you walk through it with some method, okay?

[1972] Because if you don't have three to six months saved, what happens is that money that you saved in a 401k or an IRA, that becomes your emergency fund.

[1973] And then when it rains, you have to pull from it prematurely and you get hit with penalties and fees and it messes up your rhythm of investing and I really don't want that for you.

[1974] Fair enough?

[1975] Okay.

[1976] Yeah.

[1977] Okay.

[1978] So you've paid off the student loan in January.

[1979] By February, I want your main focus to not be investing.

[1980] I want your main focus to be stacking up three to six months of savings and I want that money liquid.

[1981] I don't want you investing that money.

[1982] Okay?

[1983] Because if you were to lose your job, if something were to happen, you fall on hard you need that money there because I don't want you going into debt to cover an emergency.

[1984] Okay.

[1985] So February starts, you're piling up three to six months of expenses, basic expenses, okay?

[1986] This is not like your full -blown budget.

[1987] And for anybody listening, three to six months of expenses, that is not your, that is not every item in your budget, okay?

[1988] This is what it takes to keep your household running when we say basic expenses.

[1989] So you're doing that.

[1990] And then, then and only then, are we talking about investing?

[1991] Now, typically, Alex, we would tell people to pause 401K investing.

[1992] But I'm not going to tell you that because you're literally going to pay this off in one month.

[1993] It's not even worth the trouble.

[1994] But once you stack up that three to six months, you're investing.

[1995] All right.

[1996] 15 % of your income.

[1997] If your 401K has a match, you can start with that.

[1998] And then after you hit the match, you can go over to a Roth IRA.

[1999] you can max one of those out.

[2000] And if you still have money left of the 15 %, you can go back to the 401K and keep going until you hit it.

[2001] Okay.

[2002] Did I answer your question or you have more?

[2003] That makes sense.

[2004] Yeah, but I was just wondering, is it possible still to invest in the 401k, or sorry, in the IRA this year?

[2005] I haven't actually opened up an account, but I'm just worried that we're kind of running into the deadline.

[2006] No, with IRAs you have until tax filing.

[2007] So you can invest all the way up until April.

[2008] roll.

[2009] I see.

[2010] Okay.

[2011] At least last I checked.

[2012] Did that change, Ken Coleman?

[2013] Last I checked.

[2014] Yes, the wrong guy.

[2015] I don't check those details much.

[2016] Yeah, it's not the same as with your 401K.

[2017] You've got time until I believe that's true because it's based on the 2023.

[2018] That's right.

[2019] So I think that's correct.

[2020] So yeah, keep going.

[2021] I'm right about that.

[2022] I just wanted to double check it.

[2023] And Ken is right about that too.

[2024] But yeah, I love this.

[2025] I love it.

[2026] I'm excited for you.

[2027] You're on your way, young man. Congratulations.

[2028] Listen, follow what Jade told you to do.

[2029] If you do that, you're going to be really wealthy and just be patient, just walk the steps out, start that investing plan.

[2030] Now, how old are you?

[2031] 24.

[2032] Oh, my goodness.

[2033] Oh, come on now.

[2034] That's exciting.

[2035] Listen, and again, I'm going to say this again.

[2036] I don't know if you're going to do it or not, but if you really want to do this quickly, pause investing now.

[2037] Yeah.

[2038] So just pause.

[2039] It's a temporary, just quick pause so you can get that money back in your hands.

[2040] So you can quickly get the student loan out.

[2041] so you can quickly save up that three to six months and then you can hit a hard 15 % oh my goodness it's going to make your mind blown how quickly you recoup whatever little bit you lost off of that small pause.

[2042] That's exactly right.

[2043] It's all about momentum, Alex and everybody else.

[2044] I mean that's the magic of the baby steps is it allows you to get emotional momentum which then leads to financial momentum and that's what's really great.

[2045] Okay Okay.

[2046] So unbelievable here.

[2047] I wanted to bring back perspective, Jade, for you as we wrap up the show today, 36 million plus of our listeners and viewers paying off debt.

[2048] It is doable.

[2049] And I've got to do this because she's my friend, but this is really good.

[2050] You see that?

[2051] I've got to tilt at the right.

[2052] Look at that.

[2053] Money's not a math problem.

[2054] This is her new book.

[2055] Comes out when?

[2056] It's technically out now.

[2057] Oh, it is.

[2058] It's on the street.

[2059] Okay.

[2060] I know it didn't be pre -sell.

[2061] So you can get it now.

[2062] Amazon, wherever books are sold.

[2063] Yes.

[2064] If you buy it on ramsysolutions .com, it'll ship immediately.

[2065] Immediately.

[2066] If you go on Amazon, Barnes & Noble, Target, those sorts of things, it will not ship till January 2nd.

[2067] So keep that in mind.

[2068] Yeah.

[2069] So here's what's great about it.

[2070] Barely over 40 pages includes her amazing story.

[2071] This is a woman who's walked the walk.

[2072] She's talked to talk.

[2073] The real reason you're broken, what to do about it.

[2074] Money's not a math problem.

[2075] And it's about behavior.

[2076] And that's what I love about this title.

[2077] And Jade is, lived at she and sam paid almost half a million dollars off in debt and as we we wrap today's show i just was thinking the perspective here of all the calls we have had today plus i could say this about every show it really is about the title of your book it is i'm going to give you the final word on that wow it is about behavior yes it is money's not a math problem at the end of the day you're not going to accomplish anything if you don't truly believe you can and i always say if behavior is the car, belief is in the driver's seat.

[2078] Belief is what drives our behavior, whether you believe you can or you can't, you're right.

[2079] And if you're not getting where you want to go, it's because you don't believe you can get where you want to go.

[2080] And I say it all the time, you can tell me you won't do it, but don't tell me you can't.

[2081] You can do it, but your belief's got to be in the right place.

[2082] And this book is all about that.

[2083] Go get it right now.

[2084] Ramsey Solutions .com.

[2085] It's in the store.

[2086] It's a great gift because it's very affordable.

[2087] It's the gift that keeps on The famous line from Christmas Vacation.

[2088] How about that?

[2089] Hey, big thanks to my colleague, my dear friend, Jade Warshaw, soon -to -be bestselling author, to our fearless leader, old captain, our captain, James Childs, and the amazing crew.

[2090] This is The Ramsey Show.

[2091] Hey, folks, Dave here.

[2092] You want to hear even more life -changing content from Ramsey?

[2093] Download the Ramsey Network app so you can catch all your favorite shows all in one place like the Ramsey Show, Smart Money Happy Hour, and the Dr. John Deloney Show.

[2094] get real talk about life, relationships, money, and your career.

[2095] Plus, the app lets you browse by topic like debt, business, or selling your home.

[2096] Get the content you want whenever and wherever you want to listen.

[2097] Download the Ramsey Network app today.