Transcript

You Don’t Build Wealth by Ignoring Basic Financial Principles | December 30, 2025

From The Ramsey Show · Episode page · Watch on YouTube

· 2 h 6 min · 24,870 words · 481 timestamped sections

This is the full, timestamped transcript of "You Don’t Build Wealth by Ignoring Basic Financial Principles | December 30, 2025", an episode of The Ramsey Show published December 30, 2025 (2 h 6 min, about 24,870 words). It mentions 94 people, works and ideas, including Rachel Cruz, Mario (Sherry Coleman's brother), Ramsey Show, Every Dollar, Fair Winds Credit Union.

What this episode is about

This discussion emphasizes the importance of applying fundamental financial principles to eliminate money stress and promote wealth-building strategies, particularly in the context of retirement planning. The hosts provide practical advice and encourage individuals to use available financial tools, like Every Dollar, to take control of their finances and celebrate important life transitions.

Key takeaways

  • Wasting advice? That's like buying gym equipment and never using it; download Every Dollar today.
  • Normal is broke—common sense is the new punk rock, and it's surprisingly lucrative.
  • Surprise retirement parties: now featuring grape juice for the teetotaler celebration enthusiast!
  • Leverage values, not just numbers: debt-free peace trumps spreadsheet projections of tax savings.
  • Some advisors miss the memo: retire from work, not from living by your own rules.

Who speaks in this episode?

What is discussed, and when

  1. – 15:00: Fair Winds Credit Union, Fair Winds Credit Union, Baby Steps, Mario (Sherry Coleman's brother)
  2. – 30:00: Guardian Litigation Group LLP, Mario (Sherry Coleman's brother), Rachel Cruz, Ramsey Show
  3. – 45:00: Ramsay Show, Mario (Sherry Coleman's brother), Home Buyer Edge, Term life insurance
  4. – 1:00:00: Credit Karma, Ramsey Show, Aldi, Ramsay Show
  5. – 1:15:00: Preborn, Columbia, South Carolina, Ramsay Show, Southwest Florida
  6. – 1:30:00: Rachel Cruz, Every Dollar, Every Dollar, Mario (Sherry Coleman's brother)
  7. – 1:45:00: Xander Insurance, Xander Insurance, Harvard, Xander
  8. – 2:00:00: Ramsay Show, California, Mario (Sherry Coleman's brother), Rachel Cruz
  9. – 2:05:49: Rachel Cruz, Debt snowball, gazelle intensity, Jeffrey 71st – Miller, Charles

Notable quotes from "You Don’t Build Wealth by Ignoring Basic Financial Principles | December 30, 2025"

  • Network in the Fair Winds Credit Union studio. This is the Ramsey Show. I'm Ken Coleman. Rachel Cruz joins me and we're here for you.88255225.88255225 is the number to jump in…
    about Rachel Cruz · at
  • Said was it is definitely be a tax write off. And the third thing was the fact that it'll save me 20 plus thousand next year in taxes because of the tax bracket that he's…
    about taxes · at
  • Welcome back to the Ramsey Show. I'm Ken Coleman. Rachel Cruz is alongside and we are here for you. 888255225LE8825-55225.
    about Mario (Sherry Coleman's brother) · at
  • Income and all of that. So, if you stay on the line, Henry, Christian is going to pick up and we're going to give you Financial Peace University for you and your wife to sit…
    about Financial Peace University · at
  • You've got to be prepared and do it the Ramsay way. You need to contact Churchill Mortgage. Their home buyer edge program gives you peace of mind in a wild market. You can cap…
    about Church Hill Mortgage · at
  • Term life insurance. Jeff Xander and the team at Xander Insurance makes it easy and affordable. I've used them personally for 25 years. They're the only people I trust. Go to xander.com or.
    about Xander Insurance · at
  • Immediately in savings. We're seeing this in an average of people who use it. You can start every dollar for free by going to the App Store or Google Play. tons of advanced…
    about Every Dollar · at
  • Yes. Yes. is really key. It's really inexpensive and so I would recommend going to xander.com. Xander's who we use. They actually they that's one of the benefits here at Ramsey…
    about Xander Insurance · at

Who and what is mentioned in this episode?

People

  • Rachel Cruz — Person · Co-host (financial coach/personality) · 10 mentions · first at
    Co-host providing Ramsey-method guidance (baby steps, debt-free living), relationship framing, and tactical budgeting advice across multiple calls.
  • Mario (Sherry Coleman's brother) — Person · Host · 9 mentions · first at
    Co-hosts the episode, leads multiple caller segments, and delivers Ramsey-style guidance on debt, retirement, and decision-making.
  • Dave Ramsey — Person · Referenced founder/voice of the brand · 1 mention · first at
    Referenced as the originator of the Ramsey approach and as a voice in ads/segments; his principles (debt-free living, baby steps) underpin the advice given.
    And all of this. And I know Dave says that you shouldn't do that. I have heard him I haven't heard him talk a lot about that, but I have heard him say that. And I was just…
  • Les Paul — Person · 1 mention · first at
    And our quote of the day from Les Paul.
  • Jeffrey 71st – Miller, Charles — Person · 1 mention · first at
    All right. Good hour, Rachel Cruz. Thank you, James Charles and our team. Thank you, America. This is the Ramsay Show.
  • George Kamel — Person · 1 mention
  • Jeff Zander — Person · 1 mention

Books & papers

Companies & orgs

  • Fair Winds Credit Union — Company · Sponsor / studio partner · 4 mentions · first at
    Sponsor referenced multiple times; studio named the 'Fair Winds Credit Union studio' and the hosts promote Fair Winds banking products (Smart Bundle, Ramsay Be Weird debit card).
    Normal is broke and common sense is weird. So, we're here to help you transform your life from the Ramsey Network in the Fair Winds Credit Union studio. This is the Ramsey…
  • Xander Insurance — Company · Sponsor · 3 mentions · first at
    Promoted as a trusted provider of term life insurance and identity theft protection.
  • Church Hill Mortgage — Company · Sponsor / advertiser · 1 mention · first at
    Paid sponsor providing mortgage-related messaging and promotion of their Home Buyer Edge program with CTAs and benefits described.
  • Ramsey Network — Company · Parent network / distributor · 1 mention · first at
    Identified as the network that produces/distributes the Ramsey Show; sets the corporate context for the program.
    Normal is broke and common sense is weird. So, we're here to help you transform your life from the Ramsey Network in the Fair Winds Credit Union studio. This is the Ramsey Show. I'm Ken Coleman. Rachel Cruz joins me and we're.
  • IRS — Company · Referenced institution · 2 mentions · first at
    Mentioned in the context of tax preparation and audits.
    Oh, medicare. if you can't pay, if you go into a nursing home, Medicaid looks, they're going to be looking at your Now we're caught up. Sorry, we weren't.
  • West Virginia University — Company · Referenced institution · 1 mention · first at
    Mentioned as the alma mater of a caller.
    Hi, good afternoon. I'm a recent college graduate from West Virginia University, and I will start paying student loan debt come January, and I want to know what is the best and.
  • Ramsay Show — Company · 16 mentions · first at
    Transform your life from the Ramsey Network in the Fair Winds Credit Union studio. This is the Ramsey Show. I'm Ken Coleman. Rachel Cruz joins me and we're here for…
  • The Ramsey Show — Company · 7 mentions · first at
    Transform your life from the Ramsey Network in the Fair Winds Credit Union studio. This is the Ramsey Show. I'm Ken Coleman. Rachel Cruz joins me and we're here for…
  • Aldi — Company · 5 mentions
  • NetSuite — Company · 5 mentions
  • Credit Karma — Company · 4 mentions · first at
    I think Credit Karma said I had about $8,000 or something like that.
  • Xander — Company · 3 mentions · first at
  • Yrefy — Company · 3 mentions
  • Guardian Litigation Group LLP — Company · 2 mentions · first at
    Relief company trying to sell you sunshine and unicorns. You need real help. And Guardian Litigation Group is the real deal. They're not a call center. They're actual…
  • Harvard — Company · 2 mentions · first at
    Ride. And the reason is these aren't the prolific ones. Let me just go ahead and tell you, this isn't Harvard. These not the big time schools. These are the schools who nobody…
  • Lexus — Company · 2 mentions
  • Ramsey Network — Company · 1 mention · first at
    Normal is broke and common sense is weird. So, we're here to help you transform your life from the Ramsey Network in the Fair Winds Credit Union studio. This is the Ramsey…
  • Auburn University — Company · 1 mention · first at
    Four years and that was kind of the main barriers. So, I remember thinking, I wanted to go to Auburn University. And I remember dad being All right, well, calculate the tuition…
  • Advance America — Company · 1 mention · first at
    I'm currently a debt collector for Advance America and I'm currently making about after commission 18 to 19 an hour, 40 hours a week.
  • App Store — Company · 1 mention · first at
    This in an average of people who use it. You can start every dollar for free by going to the App Store or Google Play. tons of advanced features, not just budgeting. Now…
  • Google Pay — Company · 1 mention · first at
    This in an average of people who use it. You can start every dollar for free by going to the App Store or Google Play. tons of advanced features, not just budgeting. Now…
  • National Public Data — Company · 1 mention · first at
    Yes. my question relates to the national public data breach and what sort of steps u should I be taking to kind of make sure my social security isn't used to open and line of credit with that or what you know what.
  • Equifax — Company · 1 mention · first at
    Information, the three credit bureaus that Rachel's talking about again, Experian, Equifax, and TransUnion. You can just, it's a free deal. Call them or do it online.
  • Experian — Company · 1 mention · first at
    Information, the three credit bureaus that Rachel's talking about again, Experian, Equifax, and TransUnion. You can just, it's a free deal. Call them or do it online.
  • Kelley Blue Book — Company · 1 mention
  • LSAC — Company · 1 mention
  • NCUA — Company · 1 mention

Products & tech

  • Every Dollar — Product · Owned product / budgeting app · 4 mentions · first at
    Repeatedly promoted in the episode as the hosts' budgeting tool and a call-to-action for listeners to download and use.
    Take what you hear and put it to work in your own life, you'll be stuck with the same money stress in 2026. So make a change and download Every Dollar today.
  • Financial Peace University — Product · Primary recommendation · 2 mentions · first at
    Recommended as a course to help individuals manage their finances and get out of debt.
  • Ramsay Be Weird — Product · Co-branded debit card product (sponsored) · 1 mention · first at
    Mentioned as part of Fair Winds Credit Union Smart Bundle — branded debit card promoting Ramsey messaging ('debt is normal, be weird').
    Win with money. Their Smart Bundle gives you a no fee checking account, a high yield savings account, and the new Ramsay Be Weird debit card that says debt is normal, be weird…
  • EIDL loan — Product · Case study · 2 mentions · first at
    Mentioned as a type of loan taken by a caller for business purposes.
    Yes. So, I have my $20,000 EIDL loan that starts payments will start coming out in October.
  • Financial Coach — Product · Incidental · 2 mentions · first at
    Mentioned in the context of financial advice.
    Coleman. Rachel Cruz joins me and we're here for you.88255225.88255225 is the number to jump in and we would love to coach you up today. We start off with Dan in Grand Rapids. Dan, how can we help you today?
  • EIDL — Product · Incidental mention · 3 mentions
    Abbreviated mention of the EIDL loan.
  • EveryDollar — Product · 4 mentions
  • Financial Peace University — Product · 2 mentions · first at
    You stay on the line, Henry, Christian is going to pick up and we're going to give you Financial Peace University for you and your wife to sit down together and go through it.…
  • Home Buyer Edge — Product · 2 mentions · first at
    You've got to be prepared and do it the Ramsay way. You need to contact Churchill Mortgage. Their home buyer edge program gives you peace of mind in a wild market. You can cap…
  • Smart Bundle — Product · 1 mention · first at
    And that's why I recommend Fair Winds Credit Union. They actually want you to win with money. Their Smart Bundle gives you a no fee checking account, a high yield savings…
  • Toyota Camry — Product · 1 mention · first at
    I just found a 2009 Toyota Camry.
  • EveryDollar Premium — Product · 1 mention
  • Mercedes-Benz GLE 350 — Product · 1 mention
  • Ramsey Be Weird debit card — Product · 1 mention

Concepts & topics

  • taxes — Concept · Core topic · 2 mentions · first at
    Discussed in the context of financial planning and retirement strategies.
  • Alzheimer's — Concept · Key argument · 1 mention · first at
    Mentioned as a personal challenge affecting a caller's financial situation.
    Everything and then my dad got early on to Alzheimer's. This was all like in a short period of time and it just threw me for a loop and a lot of my money went into custody and then I.
  • LSAT — Concept · 6 mentions
  • Baby Steps — Concept · 4 mentions · first at
    But in this situation, it's not you coming to the table with a hey, let me tell you about these baby steps.
  • 529 plan — Concept · 4 mentions
  • 403(b) — Concept · 3 mentions
  • Roth IRA — Concept · 3 mentions
  • Term life insurance — Concept · 2 mentions · first at
    To not have life insurance is if you hate your wife and kids. And I immediately went and got term life insurance.
  • Social Security number — Concept · 2 mentions · first at
    Yes, so my quick question is I was a victim of identity theft. I found out at 18 my mom had been using my social security number since I was 2 years old. found out at 18 when I…
  • Debt snowball — Concept · 2 mentions · first at
    A small student loan more before the car, just start working that debt snowball, working the smallest debt to the largest debt. and then be saving an emergency fund and then I…
  • EIDL loan — Concept · 2 mentions · first at
    Threw me for a loop and a lot of my money went into custody and then I ended up taking out an EIDL loan which I've never been like a credit card person, a loan person. I…
  • Ramsey Baby Steps — Concept · 2 mentions
  • Home equity loan — Concept · 1 mention · first at
    Gave me I guess good reasons is he's suggesting that I take out like a heliloc or a home equity loan to do this project and he said we'll chunk it away pretty quick but he said…
  • Tax write-off — Concept · 1 mention · first at
    That's arguable. the second thing he said was it is definitely be a tax write off. And the third thing was the fact that it'll save me 20 plus thousand next year in taxes because of the tax bracket that he's aligning us with. And it just.
  • Tax bracket — Concept · 1 mention · first at
    Off. And the third thing was the fact that it'll save me 20 plus thousand next year in taxes because of the tax bracket that he's aligning us with. And it just it's very hard for me to think about going into debt immediately as I retire.
  • High-yield savings account — Concept · 1 mention · first at
    Credit Union. They actually want you to win with money. Their Smart Bundle gives you a no fee checking account, a high yield savings account, and the new Ramsay Be Weird debit…
  • Identity theft insurance — Concept · 1 mention · first at
    You're not currently in debt or using debt. You can do that. That's a that's a line of protection. But having identity theft insurance Yes. Yes. is really key. It's really inexpensive and so I would recommend going to xander.com. Xander's.
  • gazelle intensity — Concept · 1 mention · first at
    The extra just the gazelle intensity because we're put we're putting about anywhere from an extra probably 1,500 or so per month on the back to Rachel's point.
  • April 15 — Concept · 1 mention

Places & events

  • California — Place · Setting · 3 mentions · first at
    Mentioned as the location where a caller resides and operates a business.
    Story short, my savings just got drained when I put employees on payroll. Out here in California, it's super expensive.
  • Charlotte, North Carolina — Place · Setting · 1 mention · first at
    Mentioned as the location of a caller.
    You. 88825-55225 is the phone number. Let's go to Caitlyn who joins us in Charlotte, North Carolina. Caitlyn, how can we help?
  • West Virginia University — Place · Setting · 2 mentions · first at
    Mentioned as the alma mater of a caller.
    Hi, good afternoon. I'm a recent college graduate from West Virginia University, and I will start paying student loan debt come January, and I want to know what is the best and.
  • Charlotte — Place · Setting · 1 mention · first at
    Mentioned as the location of a caller.
    You. 88825-55225 is the phone number. Let's go to Caitlyn who joins us in Charlotte, North Carolina. Caitlyn, how can we help?
  • Asheville, North Carolina — Place · Setting · 1 mention · first at
    Mentioned as the location where a caller resides.
    Thomas is joining us in Asheville, North Carolina. Thomas, how can we help?
  • Columbia, South Carolina — Place · 2 mentions · first at
    All right, let's go to Jessica now who joins us in Columbia, South Carolina. Jessica, how can we help?
  • Southwest Florida — Place · 2 mentions · first at
    Name. I can't get a car of my own. We share my partner's car. We moved up here to South Carolina from Southwest Florida away from my grandmother and to live up here near my…
  • Grand Rapids — Place · 1 mention · first at
    Is the number to jump in and we would love to coach you up today. We start off with Dan in Grand Rapids. Dan, how can we help you today?
  • Winchester, Virginia — Place · 1 mention · first at
    Oh, that's way far away. We're We're in the panhandle between Winchester, Virginia, and Cumberland, Maryland.
  • Cumberland, Maryland — Place · 1 mention · first at
    Oh, that's way far away. We're We're in the panhandle between Winchester, Virginia, and Cumberland, Maryland.
  • Point Pleasant, West Virginia — Place · 1 mention · first at
    Yes. Yes. Yes. Yes. Okay. I was born in that little teeny town of Point Pleasant, West Virginia.
  • Romney, West Virginia — Place · 1 mention

Media & podcasts

  • Ramsey Show — Media · Broadcast · 7 mentions · first at
    Primary program for the episode — live call-in radio/podcast where hosts coach callers on money, relationships, and careers.
    Transform your life from the Ramsey Network in the Fair Winds Credit Union studio. This is the Ramsey Show. I'm Ken Coleman. Rachel Cruz joins me and we're here for…

Sponsors

  • Fair Winds Credit Union — Sponsor · Sponsor / studio partner · 5 mentions · first at
    Sponsor referenced multiple times; studio named the 'Fair Winds Credit Union studio' and the hosts promote Fair Winds banking products (Smart Bundle, Ramsay Be Weird debit card).
    Normal is broke and common sense is weird. So, we're here to help you transform your life from the Ramsey Network in the Fair Winds Credit Union studio. This is the Ramsey…
  • Every Dollar — Product · Primary recommendation · 4 mentions · first at
    Promoted as a budgeting app to help individuals manage their finances.
  • Xander Insurance — Sponsor · Sponsor / advertiser · 3 mentions · first at
    Paid sponsor for the episode; hosts explicitly recommend Xander for term life and identity protection and provide website/phone CTA.
  • Preborn — Sponsor · Sponsor / charity partner · 2 mentions · first at
    Paid / promoted charity sponsor; host delivered an appeal and CTA to donate at pre-born.com/ramsey and described mission (ultrasounds, pregnancy support).
    Because every baby saved is more than a life preserved. It's a life changed.
  • Netsuite — Product · Sponsor / B2B software mention · 4 mentions
    Sponsor advertisement targeted at business owners; hosts describe NetSuite capabilities and CTA to take a free product tour at netsuite.com/ramsey.
  • Aldi — Sponsor · Sponsor / advertiser (grocery) · 2 mentions · first at
    Mentioned in an ad segment promoting Aldi as a low-cost grocery option with CTA to find stores at Aldi US.
    Hey guys, it's George Camel and I've got a hot tip to save you some serious cash this holiday season. Shop Aldi first.
  • Aldi holiday promotion — Sponsor · 1 mention
  • NetSuite product tour promotion — Sponsor · 1 mention
  • Preborn donation promotion — Sponsor · 1 mention
  • Sponsor: Churchill Mortgage — Sponsor · 1 mention
  • Sponsor: Fair Winds Credit Union — Sponsor · 1 mention
  • Sponsor: Guardian Litigation Group — Sponsor · 1 mention
  • Sponsor: Yrefy — Sponsor · 1 mention

Full transcript with timestamps

This episode is filled with some of our best calls and advice, but unless you take what you hear and put it to work in your own life, you'll be stuck with the same money stress in 2026. So make a change and download Every Dollar today.

Normal is broke and common sense is weird. So, we're here to help you transform your life from the Ramsey Network in the Fair Winds Credit Union studio. This is the Ramsey Show. I'm Ken Coleman. Rachel Cruz joins me and we're here for you.88255225.88255225 is the number to jump in and we would love to coach you up today. We start off with Dan in Grand Rapids. Dan, how can we help you today?

Uh, my wife and I are preparing to retire. As a matter of fact, her last day of work is tomorrow. Mine will be the beginning of February. So, 40 years of effort towards this.

Um, Dan, how are you? Dan, I got to ask you this. This is I mean, we we men have to unite because we don't do this well. And we got Rachel here to help us on this. Before we dive in, what is the plan when she finishes the day tomorrow and she wraps it up and comes home? Do you got something planned?

Um, you know, we don't. It It actually came on pretty quick. We both had this date in February picked and then her department dissolved and they said you can either take a buyout or you can transfer to another department. So this all happened for her in the last three weeks. So

okay, but presumably she's excited about this. Oh, absolutely. Yes. Dan, listen. I don't want to spend too much time on this. Rachel's here to back me up. This is where you got to step up. I mean, this is you got to do something special. She comes home, maybe a little surprise. If you hate surprises, plan a little something. At least a little retirement celebration. 40 years, babe. You're wrapping it up. We got to celebrate her is my point. I don't want to. And I'm glad I said this, Dan, because you might have blown it had I not brought this up.

You're very I appreciate that. She works from home, but I will bring stuff home and make it monumental.

She works from home. Okay, Rachel. What does he do in that situ? I feel like this is your category.

Champagne. Pop the bottle. There it is. Right outside the door. Neither neither one of us drink, but I boy, we are striking out, man. We're striking out.

The grape juice. Sparkling grape juice. Okay. No, just do something special. All right. So, we we we've now helped you there. That's the help you didn't know you needed.

Now, yeah. Plus your marriage, we got by. Um, so we we are we've worked very hard to get where we're at and we're very comfortable with what we're planning for retirement. We're very comfortable with our financial advisor, but I have one concern that he's got me uh a plan that he's got for me and we are going to put an addition on our house um next spring. So, we're planning to spend about 100 to 120,000 to do that. Now, my plan was just kind of take that off the top of our 401k and our savings and and make that do the addition. what he's suggesting and he gave me I guess good reasons is he's suggesting that I take out um like a heliloc or a home equity loan to do this project and he said we'll chunk it away pretty quick but he said there's reasons for that. First of all, I'll be paying a lower interest rate than he can make me.

That's arguable. Uh the second thing he said was it is definitely be a tax write off. And the third thing was the fact that it'll save me 20 plus thousand next year in taxes because of the tax bracket that he's aligning us with. And it just it's very hard for me to think about going into debt immediately as I retire.

Well, yeah, 100%. Because is he what where is he planning on having you guys pay off the helock when he said you can throw a bunch of like a bunch of money at it? Is he thinking just a little bit every year so that you don't mess up the taxes and all of it? that yeah he's saying we'll chunk it away and I don't know how relevant chunk it away is if it's a year or five years but he said we'll just make a monthly payment on it and again that it'll give us a tax advantage it'll save us taxes and all this which all kind of makes sense but dang it you know just got myself 40 years of work to get out of debt and retire and then just thinking about going back into debt just kind of scares me. Well, some financial adviserss are so stupid they don't even think about your values and what you want out of life and clearly living a debt-free life has a price tag for you. Uh, you know, you can't put a price on it, but you

know, it it's a value of yours that he's not putting into any consideration. And so, as he goes around, but so my Yeah. So, no, I would not do this. I would 100% just cash flow it. And if the cash flow comes out of I don't know if it's the 401k if you guys have money elsewhere. Um but you have the ability to cash flow right Dan? You guys

Yeah. We got a set amount that we're going into retirement with that we're comfortable with and it's going to last us long beyond our retirement. Y

and just thinking of taking that 100 or 120 right off the top of that and doing the addition was my plan until he

Well, let's let's just put your plan. You offered a suggestion. Yeah. I Yeah. I want to put your plan to the test, not his suggestion. and we hate his suggestion. We hate it.

Okay. So, let's put your plan to the test. Let's assume that you didn't get this advice at all.

Okay. Yes. And you just went ahead and pulled the trigger on your plan. How do you feel emotionally about your plan? Any stress?

Uh I No, I don't think so. Um it's we have kind of intentionally we have this 403b that we've been carrying for a long time and I've been very aggressive with it and I took it from 20,000 to it's about 170 right now. My thought was that is just some play money we've been actually not planning on that we've accumulated that would do this project for

us uh well we raised seven kids in our house and it it was fine with nine people but now what we find is with adult children instead of nine people every day we have 29 people you know 10 times a year so we want to double our kitchen and our living room 450 how much how much do you guys uh have in retirement total Uh, just about 2 million.

Okay. Golly. See, and he's going through all these hoops and stuff about this and that and then that. You guys have $2 million.

Yeah. Do you know what I mean? And you want to take a hundred,000 of it. And if you go and burn that amount in the middle of the room, like you're not going to have any emotion towards it because it's such a small percentage of your net worth. So that's where the peace of mind

of your value system overrides his snaking and maneuvering through where it's going to be not even that much money at the end of the day. Do you know what I'm saying? Like I would

I agree. I mean Dan, you you answered your own question. I asked it that way just simply for you to hear yourself say

his plan gives me a little bit of heartburn enough that the Pepsid AC is not working and you called us today.

Right. It did. Yeah. I I think I knew where you were going to take me, but I just kind of wanted to hear it.

Yeah. And I appreciate that and we're happy to be here for you. But you, sir, are the ultimate arbiter on this. your body, your heart, your head. And man, you're just like, man, if I can put this addition on and I'm paying cash for it for my grandkids to be there.

Yeah. And I would run the numbers, too, cuz I am curious cuz Helocks like the the rates go up and down. Like, it really is very dependent upon what's going on.

No, don't run the rates at all. I don't want you to be tempted. No, no, it's not a temptation, but it's that versus what you know what I mean? Like that versus the taxes that you're going to pay on a like like what I'm saying is I think it ends up being closer to a wash than what you realize. I think that the guy I think I think he's like

nitpicking every little thing to say I'm making this number up. I haven't done the calculations but to save 10 great whatever the thing is and and that's pennies to you guys. So I'm like the peace of mind is worth that so much more.

Yeah. Just listening to you describe everything he told you versus your plan. Yours is simple. Boom. We're done. We're done.

And I guess things he said kind of makes sense. Do you know that's Yeah. Do you have money elsewhere, Dan, where to his point, do you have money sitting in a high yield savings or something where you wouldn't necessarily have to pay taxes if you use that cash?

We have about a $40,000 savings account and then 40 401k. I have a lump sum pension and uh a 403b.

Gotcha. Gotcha. Nope. That's great. Yeah. No, I would not go borrow on my house and do an addition when I freaking have the money for it.

Yeah, that's that's the bottom line. Trust your gut, Dan. There's a whole bunch of science on this that trusting the gut is not this mysterious thing. It's actually the brain sending physical signals to the body and it we feel it in our body. That's a real thing. Has the same validity as the logic. Listen to your heart. Listen to your body. You were right. Thanks for calling. Tell the financial adviser thanks. No thanks.

The calendar might have flipped, but the way to win with money hasn't changed. Living on a budget, staying out of debt, and building wealth intentionally. Now, here's the deal. Most banks make their money when you don't do that. They're fine if you stay broke and frustrated. And that's why I recommend Fair Winds Credit Union. They actually want you to win with money. Their Smart Bundle gives you a no fee checking account, a high yield savings account, and the new Ramsay Be Weird debit card that says debt is normal, be weird right on the front. It's not just a card. It's a statement because every time you use it, it says you control your money. Your money doesn't control you. So this year, stick to your plan. Don't chase gimmicks or points and partner with a credit union that helps you make progress in the baby steps. Visit fairwinds.org/ramsey to take control of your money and stay weird. Fairwinds is federally insured by

the NCUA. Well, you know, some days uh we have a fabulous audience. Most days for the show, we have a fabulous audience comes to the lobby here at Ramsey Solutions and and uh we can see these fine people looking through the glass. We go out and say hi and all that kind of stuff. And today happens to be a birthday day. We've had two birthdays. And so we had young Millie um who was 28 and now we just met the fabulous Carol who just turned 80 a couple days ago and she's got the team out there and notice the glasses. She's got a sash. What do you call that? A sash. She's got a tiara

and she's got these fabulous glasses. James, she's hating this right now. I think is

by the way, Carol looked as though she was in shock. James and she's very embarrassed by all the attention. And so, one of the party that she's with loaned me their glasses. So, I wanted to say a special happy birthday to you, Carol.

You look fabulous. You don't look a day over 50. Uh, and we're we're very blessed that you're here and and u

and they're about to hit the town. They're going to go to you should meet them at broad on Broadway.

Actually, I'm going to ask James if I can take the rest of the show off and I'm just going to look like you're ready to play Benny and the Jets or something right now.

Biddy and the Jets. So there you go. There you go. How about that? Very fun stuff. So happy birthday again.

So fun. So fun when people spare spend their special day with us. I know. We get anniversaries. We get honeymoons sometimes.

Yeah, we do. That's always the craziest one. I'm like, I can't believe you're here on your honeymoon. What are you all doing here?

The Ramsy Show question of the day is brought to you by Yi. Yi offers a different approach to paying off your defaulted private student loans with a low fixed rate for less stress. Go to yrefi.com/ramy. That's the letter Y refy.comy. It may not be available in all states.

All right. Today's question comes from Aiden in New Mexico. My wife is a contract business consultant and is also self-employed as an artist. When it comes to paperwork, she's very disorganized. It has gotten to the point where I have taken my tax documents to a tax preparer twice because I didn't want the IRS auditing me. I beg her every year to get her stuff together and to file on time, but it never happens, which leads to arguments. How do I get her to understand the seriousness of this situation?

O, that's tough. Well, it's taxes. Like, it's Oh, back back to taxes. Yeah. But you got to do it.

Yeah. And that was that's what I was going to say. Like, so this is a relationship issue,

but in this situation, it's not you coming to the to the table with a hey, let me tell you about these baby steps. Let me tell you about this Ramsay plan. I'd like to get us on a budget. This is the federal government. This is the law.

This isn't Yeah, there's no wiggle room here. So, it it it seems like it needs to be a reality check. This isn't trying to get her on board,

right? This is like we will go to jail. This is the law. And I don't think I look good in orange, sweetheart.

You know, or whatever you got to say here. I This comes back to a relationship thing, but I I hate to make it so simplistic. I I want you to weigh in, but I I think it is, hey, this is super serious. this isn't my opinion. We have to do this. Let's make this a lot less difficult by let's get all our stuff together and be be on the same page.

Yeah. And I think self-awareness is huge because she's an artist and I'm not po I'm not pointing fingers, but I do think there is a I think that's a fair point.

When you are an artist, you there is a little bit more of a free spirit within you, right? Numbers is usually not your strength and vice versa. People that are great with numbers are terrible usually at being creative. So, it's a it's a again it it is how you were wired and gifted. And then I think as a self-aware adult to say, "Hey, I have things and weaknesses in my life

and in my personality, I'm going to be an adult and I have to obey the law, but also what systems can I put in place to help me in those weaknesses because I'm not naturally good at all of this." Right? She's very disorganized is what he said. So, um, so that would be more of the conversation of, hey,

what can we do to help you? It's not a point the finger at you constantly. It is, hey, yeah, this is the law, so it has to be done. So, what systems can we put in place together? And as the husband, I'm here to help you.

And I mean, and he's like on his own where I'm just taking my tax documents and over here, which I get cuz he doesn't want to go to jail either, right? So,

he's kind of hedging his bets. Yeah. Seriously. Um, but I think it's it is, hey, how can I help us help you

put some systems into place? But there is a point that she has to be an adult, right? Like You can you can be on that. You can you can carve a situation and a conversation a certain way to a point. But there's also a point, Kim, with all of this, especially the law. But then other things of like my wife just continues to spend more.

There's just a point that like you you're not able to change that person and they have to be the adult and it's sad when they're not. Y

but we see that a lot around here. It's a really tough situation. Thanks for sharing the question with us. Knoxville, Tennessee, the home of

Rachel's alma mater. Sam is there. Sam, how can we help? Yes. Uh, I have a question for you, uh, regarded to my truck. Um, have a, uh, uh, 2001 truck and it just rolled out of warranty. Uh, I intend to keep the truck for a longer period of time, or at least I hope so. Um, and was offered an extended warranty by the dealership. And so what I did is added up all of the cost of repairs that wouldn't have been covered or weren't covered by warranty that no longer would and it came out to about 8,800 bucks in the 4 years that I've owned the truck. So it hasn't been necessarily super reliable. Uh very expensive to repair. And uh as I intend on keeping the truck or want to keep the truck, I kind of want to explore my options. Uh, should I buy this warranty uh for $5,600? Uh, should I risk it, continue driving the truck for another 100,000 miles uh without warranty or should I go out and get a new truck with

a fresh warranty? Uh, what what's your opinion? And kind of just want to gauge a direction to go in.

What's been the repairs? I mean, about 2,000 a year is what it ends up being. What has it been?

Yeah, it it's really little stuff to be honest with you. It's uh the motor in the tailgate. It's got one of these automatic tailgates. It was the air conditioning control module in the dash. It was a sensor uh in the I guess the parking sensor system.

Yeah. Uh it's what I'm concerned about. Go ahead. Go ahead. Well, I was going to say I mean, you know, as you kind of look through this from a math perspective, it's less than like 200 bucks a month is what it ends up being, which just feels expensive. like if the stuff isn't being fixed, like that's one issue. Um, but I'm not a big fan of extended warranties because I'm like it's the thing should work and if not, I would rather it be in my court again unless there's some crazy recall right now, Sam, and they're like, you know, giving you some discounts on the extended warranty or whatever it may be.

But, um, I we usually factor in cars. We have a syncing fund that we've set up that if anything goes wrong with the cars,

we use that syncing fund. So again, for yours, it's coming out to be around $200 a month. So I would probably just set some money aside and then hopefully most of this gets fixed because I mean, the fact that you're keep going in and in for repairs is that's frustrating.

Yeah. No, you're right. And um for me, it's not really a money issue. Um you know, the truck's paid off. Um right, the 200 bucks a month is really negligible based on our income. It's more kind of a Uh, I guess a psychological field. Do I keep throwing money at a truck? Um, that's a different question. That's where I came down. That's a different question. So, that's where I came down. I agree with everything Rachel said. I'm going to come down on this one and go, I'm the kind of guy, this is the way I'm wired where

I'm I'm not going to keep dealing with this truck. I'm going to go, this thing's a lemon or it's an issue with the manufacturer and they just don't do a good job making the parts and I'm just tired of this mess. For me, because in your situation, I would be in the same boat. any mechanical work I got to do, I'm not stressed out about it. I got the money set aside, whatever, whatever, whatever. But it's like it's time.

Time is money. You remember that old phrase? Kind of true. It's a 2001, Sam. Is that what you said?

Yeah, it's a 2001 with 80,000 miles on it. And it's a it's a hybrid. And I don't know if you kind of look into some of these hybrid issues. But if the hybrid motors or the

Is it a 2021 or No, 2001. I didn't know they were making hybrids in 01. No, it's a 21. 2021

21. Yeah, you kept saying 01. I was like, man, they were ahead of their game with

2021. 2001. I couldn't spell hybrid in 2000. Okay, so 2021. That makes way more sense. I was like, this

I'd get rid of it. I'd sell it. I'd sell it. Okay. And that's somebody else's problem. And I'd go get myself a truck that had a much higher rating that I'm not in the shop all the time. And again, it's just the nick. These are like little paper cuts. It feels like what a nuisance, man. I'd be like, "Why would I buy your warranty? How about you make a better truck?" That's what I'd have said to the dealer, but I can be sassy that way. But I feel like that's true.

Absolutely. I I got an idea. Why don't you make a better truck that I don't need all this warranty? Cuz all the stuff seems like it's little piddly stuff. So, you got the cash.

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Welcome back to the Ramsey Show. I'm Ken Coleman. Rachel Cruz is alongside and we are here for you. 888255225LE8825-55225. Henry's up next in Tampa, Florida. Henry, how can we help?

Hi everybody. Um, thank you so much for taking my call. How are you guys? Good. How are you today?

I'm all right. Uh, question for you. Quick and easy question, but uh I mean not easy question, but uh I have a a lease that I just I I purchased in the last uh year or two there. But uh just heard about you guys. Um the lease is uh for the next uh two more years left on it there. I uh wondering if I should ever get out of it. Pay out of the the lease there to get a uh some money. Not necessarily money back there, but pay pay a lease there. Um I mean um sell sell the car or um get out of the lease to be able to pay lower pay some of my debt.

Yeah, it's a great question. What What are you paying a month? 1,500. Oh, what kind of car is it? Uh, Mercedes GLE 350. The

GL is pretty nice. Pretty nice car. Good taste, Henry. You got some good taste.

Thank you very much. But it's eating you alive and it's not worth it. So, we got we got to get it out of here, right? Okay.

Yeah. I just I Is there a lot of um like give us the uh terms of where you walk us through the terms.

All right. So, if I were to um terminate my payoff right now, it' be about 60 $60,000 there to pay off there. I've looked on I've heard you guys talking about it. So, I looked on the Kelly Blue Buck and it's about you get 46 46 47 thou,000 on it.

Um and then um um was that private sale? So, and I was that private sale. So, that leave you with 13,000 that you would owe, right?

Yes. Yes. And do you have any cash, Henry? Not much. No. Okay. What do you make a year?

Um, so, uh, I make about 250,000. Oh, that's good news. Yeah. That's great. So, you would need another car, correct?

Correct. To be able Yeah. to replace it. Yeah. So, we got to replace So, we got the 13,000 that you would then owe and then we've got the the cost of a replacement car. But with your income, you can get something decent if you really work on your budget, right?

Yeah, that would be my goal because two more years of this. I mean, that's a lot, right? So,

it's a good amount. Yeah. Yeah, for sure. So, because I mean I I'm according to you guys I mean I I was this is the first time I ever thought that I'm I'm broke, but uh I do owe have a good amount of debt as well, too. Over a million dollar debt.

Okay. So, tell Yeah. Give me the rest of your financial picture. I'm just curious where you're at. Um, so I, um, student loans 180,000,

credit card debt about 70,000. Okay. And then mortgage is about 690,000. Okay. Henry, you've been living the life, haven't you?

Uh, yes. Me and my wife. Not. So, I guess I Let me Let me rephrase that because I know you mentioned total income. My wife is making 100,000. So, total is 350. Okay. So, I'm 250. You guys have plenty of money. You just got to get under control.

Yes. And you know, and that's the other thing, too. They're trying to go from that life to hearing about you guys and changing my life completely. I'm I'm like, "Let's go hard." And I and my wife is like, "What are you talking about there?" So, you know, it's it's definitely different and hard there to actually talk to her about it as well, too. Just the budget.

Yeah. I'm like, "Uh, yeah, totally." And I think Henry too, just as a piece of advice, usually when you know when people are in your position, the one that kind of hears, "Okay, there's a different way we can do this." And you go in and tell your wife, "We're going to stop shopping and stop eating out." She's probably like, "What the Henry, what are you talking about? You've lost your mind." So, I think approaching her in that aspect is the why. So, I am curious, Henry, for you, what what has caused you up to this point living the way you have with money, both of you? And then you hear us, which is very counter with how you've been living. What's been appealing about that? Like what is it in you that's like, "Oh my gosh, I want that side of money, not what I've been doing."

Um that idea of freedom. I'm like I'm like trying to talk with you, but I'm like holding my breath and like

the the heaviness of just owing so much money. Like the fact that I'm like, "Wait a second. I'd never thought about how much I owe and how much debt I'm in. I've always been thinking about right now how much do I owe for the month

versus like when I calculated all after talking to you guys or listening to you guys I was like I owe a million dollars. Like what in the world?

Yep. Yep. And so and I'm like I can't do this anymore. Especially when the wife says oh I'd love to have a new summer kitchen. I'm like what are you talking about? We have no money for that.

Yeah. That's right. That's right. So Henry that's that's what I want you to communicate to her

is I can't breathe. Like I I and we hear that a lot Henry that you're not the only one. It's it's this level of stress and anxiety and weight because you don't own your life. Somebody these credit cards, right? Everything owns you and it's exhausting. And to your point, we work hard and I feel like I have no money, right? When I ask you how much money you have saved.

Exactly. It's like thinking we work so much hard like over time sometimes too. And I'm like, how do I how am I having nothing at the end of the paycheck there? I'm like, is this what everyone does? I don't understand this.

Right. Exactly. So, how much do you guys bring home a month? I was I was trying to do it with taxes and everything, but when when you guys get paid, how much per month are you bringing in? Both you and your wife.

So, I think I'm about 12 to 13,000 and she is about 4,000. So, I would say about 16 17,000.

16,000. Okay. And that's after taxes. Are you guys funding retirement? Yes. Um, yeah. We have put in retirement.

Wait, wait, wait, wait, wait, wait, wait. You make $350,000 a year. You do? Yes. No. No. Yeah. So, total

total. So, so I don't understand those take-home numbers. What what what is your takehome? Yours just you

just me about uh 16 uh 16 16 thou I'm sorry 12 12,000 for me and and and you asked about putting into um retirement. Yes. I've been putting in retirement.

Yeah. Off of gross. So, what's your gross? Your gross and her gross. Total gross is 350,

right? You're 250. She's So I She's 100 and then after taxes, retirement, insurance, like after all of that, right? What hit you?

I just felt like her takehome was really low off of a $100,000 salary, her takehome only being 4,000. That felt low to me. So I just don't know if you know your numbers. And the only reason I'm calling that out is part of this problem is you don't really know your numbers.

Yeah. Yeah. or she's having way too much withholding taken out and and at this point you're brand new to us. Rachel, explain the retirement should be paused and all of that right now to bring in as much as they can.

Yeah, for sure. So, so yeah. So, so Henry, the the whole concept you guys really need to dig in because if you're getting a big tax refund every year, that's money back in the paycheck that may not be shown here. Uh I would be pausing retirement. I'd be pausing everything. and you and your wife again sitting down

and saying, "Hey, together, it's going to be really hard to do this without her." So, I want Henry to be as honest and vulnerable with with her tonight and just talk about how scared I mean, how scared you are, honestly.

You're in the pool with me. I know. We can't We'll coach you. We'll coach you. No, but

probably should have had her on this call. Yeah. And and and to show her and show her the realization and and the truth is, Henry, for your own mental sake, you can't you guys can't keep doing this, right? I mean, you're you're going to hit a breaking point eventually. And so, um, for you guys, it's going to look different. And so, I would sit down with her and just say, "Hey, here's where I want to go. Here's the goals I want to have." And you can kind of map them out ahead of time. Um, just to say, "Okay, you know, we we have gosh, yeah, almost almost a million dollars." Not not including the mortgage, but the credit cards, the student loan, all of it.

mapping it out to say with our income and doing a budget and saying if we just cut everything and Henry to your point this is going to be a 180 from the lifestyle you guys have been living you've been living kind of the high life and enjoying life

and it's going to to get out of this we always say you can wander your way into debt you cannot wander your way out and so there has to be an intentional plan right

but um but gosh I mean in in you know three or four years you guys could have a completely different life financially speaking

I think and you getting a side hustle, Henry. I would love that. Yeah. Adding, you know, adding more income and all of that. So, you know, if you stay on the line, Henry, Christian uh is going to pick up and we're going to give you Financial Peace University for you and your wife to sit down together and go through it. It's our nine lesson course and this gives you the basics. And so, it can be she can get mad at us, not you delivering the information.

And Henry, I would say this. I think do what Rachel said as far as your approach to her, but I think you need to show her you mean business by you getting rid of that car. Yep. that will show her uh you're not just talking.

You're making some sacrifice. And then one of these days you'll be driving one of those bad boys again, but it'll be cash. This is the Ramsay Show.

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Welcome back to the Ramsay Show. When it comes to your money, Ken, one of the largest purchases that majority of people make is their home.

Yes. And when it comes to buying and selling your home, it can be very overwhelming, right? The whole housing market, the industry, when it comes to real estate, it can be really hard to tackle, especially alone. And so, that's why we created Ramsay's real estate home base. It's a place with all the tools and resources that you need to be prepared when you buy and sell your home and to give you the confidence that you're doing it the right way. So, there you're going to find calculators, a start to finish guide, multiple of them to help you, how-to articles, a podcast, a book, and even a video course, all packed with actionable steps to help you navigate this process of buying and selling your home. So, if you're ready to take the next step towards your home goals with peace of mind, make sure to go to ramiesolutions.comrealestate or click the link in the description if you are listening on YouTube or podcast.

All right, up next we're going to Diego in Sacramento. Hey Diego, welcome to the show.

Hi, thank you. Absolutely. My wife and I just Oh yes, sorry. Uh yeah, my wife and I just had a baby and uh we've been having a discussion about opening a college account for him, a 529. And my wife's on the side of saving um as much as we can uh enough to pay for his whole uh college tuition. And I'm more on the side of um maybe not doing that just because um you know, for for me when I went to school, I didn't have that. And I think it built a lot of character in myself. Um you know, my parents, they provided a place for me to sleep. um you know they they didn't charge me any rent and you know they provided food for me every day. So um I I felt like I was really blessed that in what they gave me you know what they could um and I felt like it you know it built some character me I worked through school and and it um you know showed me like you know the value of of money and how you know um you know what I'm paying

for for school. It you know it it you know it just showed me the value. So, I just wanted to get your guys' opinion on whether uh maybe there's like a middle point between my wife and I or or maybe you should just avoid it alto together or or yeah, saving all of it that we can and maybe that's a good thing.

Well, I think this comes down to Rachel how big of a stressor this is for you guys when you talk about it. Are you both pretty adamant and it gets kind of tense and there's a lot of separation or you guys um a couple of more conversations from going, "Okay, I see it your way." I mean, what's the real tension level now on this?

Oh, super low. I mean, we're we're very good about, you know, communicating. We've never had a problem with that. Um, uh,

so when you told her your point of view, did she agree with you and go, hm, that's interesting, or does she go, h, it's too old school and I want to help?

No. Yeah, she says, yeah, pretty much what you're saying. Yeah, like she she would prefer, you know, us having more, you know, better means than our parents did. She's saying like we, you know, we should afford something our we didn't have.

So, let me tell you, Diego, your um the way you're going about this and your your heart and your thought process, I really love because I do think that our kids have to have grit. Our kids have to have a level of struggle. Our kids have to be able to know how to appreciate things, not be entitled, know how to work hard, right? Like all of these elements of who they're going to be, the character part of them, we all want as parents, right? or at least I hope parents want that for their kids and that's what you're wanting, right? And so what you're thinking is you're going to do it through the means of paying for their own college. So where I would challenge you is are there other places that they can learn those same character qualities and and and also be able to have their college paid for because Diego my parents paid for my college and I'll tell you there was stipulations around it and so we had to go to an

instate school we had to graduate in four years and that was kind of the main barriers. So, I remember thinking, you know, I wanted to go to Auburn University. And I remember dad being like, "All right, well, calculate the tuition and the difference between a school in Tennessee, a public university in Tennessee minus the tuition of a school in Alabama. You pay the difference."

And I looked and I was like, "No thanks. Go balls. I'll go in state." And then it was, "All right, well, now I have to take 15 hours every semester while some of my friends were taking nine." So, you know, because people graduate a semester late or a year later and they kind of just like work their way through. I had to be on a screw, you know what I mean? Like I

I had to have that schedule. So, I think it's a misnomer to generalize. If your school is paid for, you're not going to have hard work and grit.

I don't think that's true. I think it's a way that you feel that. Winston, my husband, you know, he had to work his way through not the tuition part, but everything else. He had to figure he had to have a job to pay rent and pay for food and all of that, right? So, um, but but I, so I think that there are ways to accomplish what you want for your kids, and it may look different. And I'll give you one more example, then I'll be quiet and let Ken jump in. But like for us right now, Diego, we have a 9,7, and 5-year-old. And Winston sold his lawn mower about three years ago, and we have a lawn company mow our lawn. and he really really struggled with our kids not growing up watching him mow the lawn

because he had a lawn care business in college and he was like I want my kids to see physical I want you know he was so hard on that on himself on that

but then as we talked he was like but right now my time is better spent with them on Saturdays than going and doing that what are ways now that we almost have to manufacture a life where they don't get what they want they're going to have to work and do things to get what they want so does that Makes sense. I just don't want to overgeneralize that if your college is paid for, you're going to be some spoiled entitled brat. Because let me tell you, there probably are some spoiled entitled brats

whose college is paid for and isn't paid for, but it's more of the character of who they are.

And yeah, and maybe it's revealed to them. And I'm glad you really segueed nicely for me. You didn't even know. I'm going to throw a different angle at you, Diego, because on one hand, I love the fact that you're going, I don't I don't owe my kids a college education, and I don't think you do. Um, but I'm not going to qualify this. I'm just going to say this, and this comes from experience. Diego, just because you worked your way through college and you took all the benefits that you obviously did, doesn't mean that your child or children are going to do the same as you. Uh, they aren't you, number one.

They really aren't. They aren't you. They they they will have some of your DNA, uh, but they are not you. And they will have different experiences. They will have different environments growing up. And I think one of the challenges that we face, and I'm just being really vulnerable here, that I've had to learn as a father of three, is that the things that I did, the things that I learned, the way that I handled life is so unique to me. And I know I'm saying something that's completely obvious, but I think we forget this. And I I would just say that in this case, if you played this out the way that you desire, let's say your wife just went, "I love that, Diego. Let's do that."

There's a really high high probability that one or both or all of your kids, however many you have, won't deal with it the way that you dealt with it. And they may go, "Dad's out of his mind, the old coot. He's a goofball. And I'm going to go get a student loan." And because I can. and they get it done so effortlessly and the very thing that you idealized and kind of thought this is how I see it going it would even break your heart and so to that end I would say if you can fund it you should

as an option and the 529 as we teach I'll give it back to my partner here it's very u it's flexible as to how you can use those funds for lots of qualifications because the world here's the other thing

the world's changing the world is changing so quickly right now What will higher ed look like when these babies are to that age? You and I have zero clue what it's going to look like. So, I hope that perspective helps you. I don't think it's as easy as you just going, "This is how I want it to be because that's how it was for me." And I get that if anybody gets that. Believe me, I actually talk like that sometimes.

Is that you know me? Well, I'm trying to be transparent. And I think that's true. And I think and again I want to reiterate Diego the sentiment of what you're longing for your kids to have is so good. Like that is so good because we want our kids

and you're right other way to do it. But I think that there is I'm like there's there's different other and and there's so much between and like have them pay for their car when they're 60, right? I mean like there's things you can implement.

Have them try and along the way a sport, a hobby. Let them fail and they're going to and the world's hard enough in general, right? I'm like, they're they're they're going to bump up against it. But I think you can create an environment with your within your home between now and 18. Um, that creates, you know, I I I knock on wood, I believe this and I hope it's true. You know, not perfect kids, but kids that you are able to shape under your household and you as a parent get to put some of those guard rails in place. And if you give them everything they want, are they going to be more spoiled? Sure.

if they got to work and figure out and problem solve, then that's going to be good for them, too. So, I think there's ways you can do it. But thanks for the call, Diego. Thanks for all the guys in the booth. Thank you, Ken Coleman. Thank you, America. We'll be back.

Statistics show that half of Americans don't have enough life insurance or they don't have any at all. I don't understand this, John. Why don't people want to take care of their family? They think they're going to die or something. Well, I used to be one of those guys. I didn't even think about it. And one of my buddies said, "Hey, the only reason to not have life insurance is if you hate your wife and kids." And I immediately went and got term life insurance.

That's a gut punch. And oh, you're telling me and for for decades, Dave, I've sat across people who've lost a spouse. They've lost somebody important to them. And they don't know what to do next.

Me, too. I mean, you're going to have a crisis here. And you know, you got two options while you're sitting and talking to a young widow. She's concerned about how she's going to invest all this money properly and not mess this up, or she's concerned how she's going to eat tomorrow. That's exactly

these are the two options. Take care of your dad gum family, man. Term life insurance can replace income, pay off debts, cover funeral expenses, so your family can actually have the opportunity to just be sad. Yeah.

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Welcome back to the Ramsay Show coming to you from the Fair Winds Credit Union studio alongside Rachel Cruz. I'm Ken Coleman. So excited to be with you today and we want to coach you up. 88 8255225 and Twinette is joining us now in Fort Worth, Texas. And Twinette, how can we help?

Well, um I'm going to be 62 next month and uh I don't have anything saved for retirement and uh I want to become a firsttime homeowner and I don't know if that's stupid and ridiculous or if it's possible.

Well, I don't think it's stupid or ridiculous. Let's focus on the possible part. Give us a picture of your financial situation given that you have zero retirement or very little retirement. I have no retirement and I have no money for a down payment. So, I would have to go USDA or Seth Buy, something with a zero down and so that would make my payments even higher.

No, you don't have to do that. You don't have to do that. Do you have any debt?

Yes, I have some, but not an unmanageable and I'm getting it paid off really quick.

Okay. How much debt do you have? Uh, I think Credit Karma said I had about uh $8,000 or something like that. I just paid off uh $600 worth of two of my accounts in the last month. So,

is the 8,000 credit cards or personal loans? What is it? Uh let's see. I paid off the personal loan and so uh and one of them is my car and uh the rest of them are credit cards. I've got I think four credit cards.

How much is in your car do you owe on your car? Oh gosh, I can't remember. Um I'm really bad with money. I mean numbers and so I just know that I just got it two months ago and I had to trade in my other car because it was a 2019. It was convertible and the it didn't convert anymore and uh mechanically it was down but everything else on it was falling apart. So I had to get rid of it and I was upside down on it because last year it was worth uh $17,000 and then this year it was worth $5,000. And so I was real upside down on it. And so uh I owe more on the my I had to get a minivan because I'm so popular. I can't have a little convertible. So I owe more on my minivan than really I should. So

Okay. And you probably did you roll over the negative e negative equity on the um on the convertible?

Yes. Into the minivan. Okay. So how much do you owe on the minivan? I don't know. You don't know, Antonet. You signed a loan. You don't you don't know how much the total is.

That's right. All right. All right. Right. And she had to go to Credit Karma on the other thing. So, one of our problems, Antuina, is you don't have a firm grasp of your numbers.

Yeah. She already said she's bad with them, but it's not I can't remember numbers.

Oh, but it's not about that. It's about Do you have a file over in your house somewhere where we got the car information? Yes, but I'm a truck driver. So, my house is uh like 2,000 miles away.

Why do you need a minivan if you're driving a truck all the time? I go home sometimes

and you're popular. So, you and the ladies are hopping in the minivan. Okay. All right. I'm trying to catch up here.

Okay. Cuz I I'm trying to figure out honestly if we can sell the minivan. What year's the minivan? What year?

Well, I had to go for a uh let's see here. a uh 2023 I think. Okay. We got and with the negative I mean this could be 30 $40,000. I mean so okay so Antuinette

I want to paint you a picture. Yesterday on the show we had a truck driver Christopher. He paid off all of his debt and he has hundred I mean tens of thousands of dollars. I mean he's just absolutely killing it and he's a truck driver. He was telling us he had a Subaru, brand new, ended up selling it. Had some, you know, had to take out a small loan because it had gone down and he was upside down a little bit. Uh, bought an $8,000 Lexus. The Lexus gets hit. He gets a check from the insurance company for $9,000. He ends up buying a $2,000 car, takes the rest of that

and throws it at the debt. Right? So, there's a way to do this. And even someone in your industry, we literally just talked to him. He did his debt free scream yesterday. Here's the thing, internet. Okay, so the excuse that I am bad with numbers can't be an excuse anymore. Okay, you are an adult. You are smart. You are capable. And we have to get this under control. So, the first thing I need you to do when we hang up is I need you to call the dealership uh or the credit wherever you got the loan for the van. Uh, I want you to pull up the Credit Karma again and know exactly exactly which credit cards are out there and know exactly what you owe on them and companies. I want you to write a list down and then take your phone and take a picture of it so you have it documented. Even if you're out and about, you have it documented. And then the plan is going to be home ownership is going to be down the line, okay, for

you. Um, but I but I think the goal here is to get yourself out of debt. And Antuinette, I would you're more than likely going to have to sell the minivan, okay? And you're gonna get a beater $2,000 car because I want you to be out of this debt so that you can start saving for retirement. I don't want you driving, you know, have to be a truck driver for the rest of your life. I want you to be able to have a great retirement. And that's not going to be possible with the habits that you've been in. Not only just financially actually, but the way you're going about it and your attitude about it. You got to you've got to make the turn and it can and it's going to be difficult and hard, but you need to get as much facts in front of you as possible because you don't know what you don't know.

Are you an independent contractor? In other words, work for yourself or do you or do you work for a company?

I'm a company driver. I'm not kidding about having a bad memory. And I update all of my bills every other month. I have a piece of paper that tells me I keep it on a book. I look at every one of them. I see how much interest that they're charging me. I see how much my balance is. And then I uh t I tally up my total debt. I also look at Credit Karma a few times a week. I just have a bad memory. And if had I known that you're going to be asking me these questions, I would have had this stuff.

And you called a money show, my friend. You know what I mean? And so we we're trying to help. We really are. And so my

my encouragement to you is that when there when there is something a big big missing piece and the car loan is that for me right now that I need to I need you to know what it is because I may need you to make a really quick decision to sell it because do you know how much the payment is each month?

Yes, the payment is uh $995. Okay. Almost $1,000. How much money do you get paid once a month? per month, what are you making?

Probably about 7500. Okay. 7500. And let me do a quick followup, Antinet, because I didn't hear you. That's my fault. Did you say you're independent? And the reason I'm asking this, did you say you're independent?

She works for a company. Okay. Do they have a 401k or some type of retirement program that you can be contributing to?

Yes. But I don't because what what's the point of that at my age? Because you have nothing. So, we can run these numbers, but I mean for the baby steps, as we teach them, is $1,000 in savings just for basic emergencies. Baby step two is to pay off your debt, smallest to largest. That's why Rachel leaned in there. We want to get the debt out of your life because we just learned that that could save us 900 bucks a month. That could be going

that could be going towards retirement and and so, but why would I want a $2,000 beater card that's going to break down all the time?

Well, a $2,000 beater card doesn't always break down all the time. You can ask Christopher yesterday. He literally had a picture of his and it runs great. It's

And I'm talking to a person who's super popular. Your own words. Have the ladies pick you up when you're not in the truck.

Car. I want to get all of my family together and take them places. I hear your heart in it. And I get a Lamborghini when I'm going there.

I don't need to. I want to dunk a basketball. Uh but some things are not going to happen cuz I'm 5'8 and can't jump. You know, if I want to retire with dignity, I've got to start saving money. and I can't save money if I'm in debt.

Hey, Antoine, I want you to keep listening to the Ramsey Show for real. I want you to listen every single day for the next 6 months. Make that be your goal. Just as you're driving, listen to this show because I want this knowledge to soak in and this way of thinking and the way of life when it comes to money.

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So find a store near you at Aldi US. That's aldi us. Savings based on regional analysis of Aldi versus select competitors. Prices may vary by location, product availability, and the market. Welcome back to the Ramsey Show. We are here for you to answer your questions about your money, your work, your relationships. And I'm Ken Coleman and Rachel Cruz joins me. The phone number is 888255225LE88255225. Lindsay is going to join us now right here in our neck of the woods, Nashville, Tennessee. Lindsay, how can we help today?

Hi, thank you for taking my question. Um I am writing in with a relationship money question actually. So back in college um my parents loaned me about um $18,000 to go to college. It was $15,000 in principal and $3,000 in interest to help me pay for college under the agreement that I would pay it off within three years of graduation. Um fortunately I was I was able to do that. Um, but after listening to many, many episodes of your guys' show, um, I feel a little bit, you know, taken advantage of. Um, and my question is, is it worth expressing my feelings to my parents now despite the loan being paid back, or do I just accept the lesson, don't borrow from family, and try to do better with my own kids going forward?

Okay. Uh, I'll start because I think I represent my colleague here. I don't know that we can answer that question without understanding why it is you think they took advantage of you based on what you've laid out. Um, you knew what you're getting into, right? It doesn't sound like they took advantage of you. So, what are we missing that makes you feel like they took advantage of you?

Correct. So, I I knew um I knew the full amount when I signed for it. Um, you know, they told me things like, "You can go get a loan from a bank, but god forbid something happened while you're paying them back. You know, were your parents, we would be much more understanding um of that situation should it present itself." And I guess it's the whole charging interest thing um that I I guess doesn't sit right.

Okay, another question. You've paid this all back as I understand it. Correct. Correct.

When did you when did the that when did the tension arise over the interest? In the middle of it, before you started paying it back, or after you got done with it,

paying the whole thing? More so after. Yeah, more so after I got done with it. You know,

how long after you got done with it? Um, it was about a year after. What changed? What changed? So, I'm digging here on purpose, Rachel. Thank you for giving me a little leeway here.

That's a fair question. It is a very fair question. So, let me explain it to the audience and to you one time and then I want you to answer this.

Mhm. So, you paid it back. You paid back the the uh full 18,000 and about three grand of it was the interest. Is that what I'm understanding?

It was 183 of it was interest. That's what I'm saying. So, okay. So, you paid it all back. All right. And a year after you paid it back, at some point at some day, a year after you paid it back, this started to bother you. So that tells me something happened. What happened? Or dare I ask, who happened? Um, so it I I got married um a year after a little over a year after I graduated college

and my husband and I were talking about it and he was shocked that they charged me interest and thought it was horrible that

a parent would charge a child interest on a loan. H and you believed him all of a sudden?

Yes. Had it occurred to you before his comment that that might be a horrible, despicable thing in someone else's eyes,

be honest. Sure. It had occurred to you, you telling me at some point you were like, "This I appreciate what my parents are doing, but I think this is a little this is a bit shady."

Oh, no, no, no. Sorry, sorry. I I misunderstood your question. I know. I'm I'm I'm playing lawyer. I watch too many te television shows. Here's my point. the the husband said this and because of his understandable influence on you and probably just by his sheer reaction which he's by the way has every right to his opinion this totally shifted everything so I'm going to get out of the way and let Rachel weigh in but I'm going to tell you my opinion now I've gotten everything I need to know okay so my opinion is it's too late and I don't think there was any tension or resentment at all until your hubs opened his mouth. He has every right to open his mouth. He has every right to opine on what your parents did. I don't like how he said it because I think he should have been wiser and more mature.

And if he was on the phone, I'd tell him this. He has every right to his opinion, but he's now created some tension and resentment after the fact and and only from his point of view. And and so for that reason, no, I don't think you should bring it up to your parents. And I think you need to figure out how to process this. Maybe it's therapy. Uh but to create tension now uh to me seems foolish.

Yeah. I think I think what's hard for me, Lindsay, where it does not feel like they took advantage of you is because everything was upfront. If you had called and and we've had these calls of people called, they said, "Oh my gosh, we pulled my credit report after I got married to buy a house and I had a student loan on there. My parents took out a loan. I remember signing papers at 18, but they never told me. You know, that's deceitful. Um people, parents that um that loan with strings attached that we'll give you this money maybe for a down payment on a house, but you guys have to live this close to us. We have to see the grant, you know, there's strings attached and relationships. It's kind of gross. Like this sounds like even though we're not for You're exactly right. We are not for family members loaning money period. But the way they did it, Lindsay, it was it sounded very clear, very upfront. And the reason they

did it, from what I hear, is they did it from a situation that a it's less risk with the loan being held to them. It was not a, "Hey, we're going to give you a deal. We're going to charge you." And now if the three if the $3,000 um was unreasonable interest, right? If they're charging you 50% interest and they're taking advantage of you, that's gross and weird.

But did they do that? if they pulled the average interest rate and they just said, "Hey, and just just do the loan with us, because if something happens, their words, we'll we can give you grace period." Like, it won't hurt you financially.

Um, you know, that's the reason they did it. It wasn't a mathematical you're going to get a deal for from us. We're going to give you this half off. So, so Lindsay, I don't think they took advantage of it. I think you knew exactly what you were signing up for. And I think that the reason they did it was so that a bank wasn't involved, but it wasn't a financial deal on their end. It was just a hey, here's this.

Did they charge you the going rate on interest? I mean, Rachel brings us a very good point here.

Well, no. So, it would have been um about what what is that? 20% maybe. It was $1,000 for every $5,000 that I borrowed from them.

Okay. All right. 20. Yeah. So, that's a little bit high. Is your Are your parents super tight?

Yes, very. Okay. So, I actually I'm glad you brought this up, Rachel. Sorry, I know I was diving in a little bit. Not try truly interrupting because I don't like that.

Go, Ken. Go ahead. Okay. Well, I personally wouldn't charge my kid interest. And now again, we don't loan our kids money, right? All right. Nor am I going to, but I'm trying to put myself into this. So, it remember the old classic, we tell you what we would do. Okay, we wouldn't do it, but if I'm sticking myself, I I think it's a little tight. I think it's a littleight. Sure.

But they didn't do anything. But take advantage is a really That's strong language. I don't like that language.

It feels like it was deceitful. I don't think they did. I am going to say though, Lindsay, I So, I have another follow-up question. I can't wait for Rachel to get involved in this potentially.

So, the timeline for all of our viewers and listeners here, quick review. It was a year after you paid it off that HubS and you have the conversation, he gets he gets upset and it affects you. How much time between that first moment where he makes the comment and this phone call today? How much time has passed?

Uh, years. We've been married for almost three years. Oh wow. That really concerns me. I was very intrigued by this. So here we are.

Are you saying three years ago is when he first got alarmed and you started questioning this deal? Three years ago.

Yes. All right. So you've been sitting on this for three years. And it the lend's been paid off for three years as well.

Four. Loans been paid off for I got I'm sorry. I'm sewing the timeline here. So the question is Rachel. Doesn't that concern you? I'm very concerned.

Concerned? What do you mean that that she's just resent? This resentment is just boiling. and she's calling us and I'm glad you called us. I would really stop talking about it. I would release it, Lindsay. I really would. I think that yes, they're probably cheap to a degree like you said. Yeah, they're cheap. Okay. But they but they didn't do anything deceitful. You knew exactly what you were signing up for. And so I think it's one of those things that again

thankfully you had the money to pay them back and all of it. But the the deal is like this is this is another reason, right, why we don't loan money. So I'm glad you've been watching the show, Lindsay, because you're exactly right. this is I would do this cuz it does feel weird and it's not only does it feel weird cuz you owe your parents money when we talk about that but it's also weird in this situation when you look back and you're like

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That's pre-born.com/ramsey. All right, let's go to Jessica now who joins us in Columbia, South Carolina. Jessica, how can we help?

Yes, so my quick question is I was a victim of identity theft. I found out at 18 my mom had been using my social security number um since I was 2 years old. Um, found out at 18 when I went to go get a car and they wouldn't even touch me with a co-signer with an 800 credit score. No money down. Found out I had 800 uh $186,000 in credit card debt just alone.

Wait, wait, say that again, Jessica. And what? $186,000 in credit card debt. Oh my god.

That your mom racked up? Yes. Oh, Jessica, how long ago was this? Oh my word. I mean, all the way back to 2005. The most recent one was in 2021,

um, which was right before I was 18, and I got it with a lawyer, an attorney, and we got my credit wiped. But what what it left me with was zero credit history and horrible credit score.

Not even a not even a secure credit card will touch me now. Um, I have a significant other. are not married, but we have gone to plenty of financial advisors and we have been told both that our best option is to get married because again I can't get even a credit card in my name. I'm an authorized user on only one card and I can't be an authorized user on a lot of other credit cards.

All right, Jessica, slow down. Slow. No, you're not actually. This is going to be a great call for you because you're not stuck. But quick question here. Uh and Rachel's going to give you some amazing guidance here. I promise you. But why are financial advisors telling you that the best thing to do is to get married? Because that feels like a financial reason, not a good reason to get married. So, I want to dig into that first. What What are we trying to accomplish?

Yes. They always say, um, sign if I can't. And I don't have a car in my name. I can't get a car of my own. We share my partner's car. We moved up here to South Carolina from Southwest Florida away from my grandmother and to live up here near my father and I work from home which isn't a big deal but our biggest issue right now is we have one car.

Okay. All right. Slow down. Slow down. I'm stuck. So you're not you're not stuck.

This is this is the theme of this call. All right. I'm just going to ask a quick question here. Rachel, I'll get out of your way. But but I want to ask a question here.

Yes. What do you do for a living and how much do you make? And I have a quick followup. So, give me the real quick stats. What do you do and how much do you make?

I'm currently a debt collector for Advance America and I'm currently making about after commission 18 to 19 an hour, 40 hours a week.

All right. So, if if you could save up money for let's say you could save up $10,000, I don't care how long it takes you. Could you buy a car without a credit card? Could you buy a car with $10,000 cash? Yes or no?

Yeah, most definitely. I mean, there's plenty of good vehicles for that price. So, I'm challenging some of your thinking here. I want to Rachel's going to guide you here, but I I want to challenge this idea that you're stuck because you have no credit score, and that you have to get married in order to have a car.

You have a job and you can go buy a $5,000 car, a $7,500 car. I just want to make sure you catch that.

Definitely. Most definitely. All right. I want to get out of the way, Rachel, because I know you got some questions. But my goodness,

I mean, the paradigm shift that you have to have, Jessica, is a pretty big one because everything you've been talking about so far on this call has to do with how do I live my life around having a great credit score. And actually, you called the Ramsay Show and we're the opposite. We actually

don't care about the credit score because primarily you use a credit score to go into more debt is what and and you're finding that out when you're trying to go get a car loan. They won't give it to you because you have a bad credit score. You try to go deeper into debt with a credit card. They won't give you a credit card because of that. So living debtree, this is actually a gift, Jessica. You don't even have the option. Most people listening right now could go apply for a credit card. You don't have the option. So see that as a blessing because I don't want it an option for you. Even if you had a great credit score. So how do we live life debtree?

Well, number one, starting out, your biggest need is what you're saying is a car.

I almost think your biggest need is maybe a new job. As a debt collector, that can't be a very fun job. So I would to even talk about that. So You're limited there.

I think you can do some really great work, Jessica. And I think you can work overtime. Do you have kids?

Yes, I do not. I So, Jessica, I would make a priority right now to say here making a very detailed budget, knowing exactly what you're what you need in life for food,

shelter, utilities, transportation, and that's about it. Like, I mean, we're just going on the basics here.

Everything else is going to go to save up for a car. And maybe $5,000 is your goal, whatever it may be, because you don't

Do you have Do you have any consumer debt in your name? No. No, it's all Okay. So, and you're fighting this whole $186,000, right?

We We successfully sued the Got wiped 100%. How much do you have in savings? Okay. Yes.

Do you have any savings currently? No. Um, we just used our savings to move and, you know, get out of Southwest Florida because the jobs there weren't any good. Um, and we're currently trying I'm trying to get back into college. I have one semester left to get my associates, but again, my mother messing with my identity has affected my tax forms to getting grants and loans.

But listen, listen, Jessica, you don't need a loan to get one more semester paid for. And I think your your remaining semester of your associates degree is secondary to what Rachel is saying, which is let's get some money saved. Let's get on a budget and let's buy a car. Because Jessica, we we have people call the show all the time and they're trying to get out of debt. And so when we talk about getting out of debt, for instance, we say you cut everything

and you work extra. And we have people very nor I mean in a very uh normal rhythm on this show that are making an extra um, $1,200 above their income on side hustles. So let's just make it a goal for you. And especially since you don't have kids, be like, "Hey, evenings I'm working." Like whether you're waiting tables, I mean, you are doing something. And let's just go crazy and let's say you earn an extra uh let's go two grand a month. I know that sounds crazy, Jessica, but seriously, like what if you worked your butt off, earned an extra 2,000. That means sitting right now where we are in the calendar by July August you could have a car by between depending on how much that one semester cost you between now and December after you have a car another couple of months of working extra you could have saved you know six $8,000

for your tuition. So that's like that's literally between now and the end of the calendar year Jessica. So like it is possible. You just have to make some really big goals and you have to um not that you're playing victim to this by any means, but don't be but don't be leaning on the on the credit industry to get you out. Jessica, you can get

that's what we're fed we're fed our whole lives that credit is what matters. I mean, again, we moved up here with the intent to buy a home and we found out quickly that I couldn't be on it and I guess that's really what Deb and you don't need to buy a home with someone you're not married to either, Jessica. or get married or get married at the advice of a financial adviser so you can get a car. All right. Now, listen. Uh listen to this. I just found this is in the Columbia, South Carolina area. Okay.

Mhm. I just found a 2009 Toyota Camry. 182,000 miles, which on a Camry might as well be a new car. Okay. That car can go for 482.

Oh, I Oh, I know. All right. Listen to this. $3,700 they want for this car. You walk up there with $3,200 in $100 bills and say months and say, "Guys, this is what I'm going to pay you for this car." They'll give it to you so fast your head will spin. No credit.

Do you hear me? Yes, I do. I've had plenty of I mean, my first car was an '05 Civic. Problems with Okay. So, I want to know for you because we've thrown out a couple of things, whether it's cars or college or um not buying a house with someone you're not married to. And your rebuttal to us this whole call has been, "Oh, I know. Oh, I know. I know."

But why why are you then still dabbling in this idea like I can't get a credit card. I can't get a car loan. I can't get a student loan because

you're saying, you know, but you're still giving it an option. Why? No, I I think it's just more so again, I mean, we I mean, my whole family is I I mean, obviously, they're not, you know, they got their own troubles, but the whole thing is, you know, to have great credit and to not have this negative stuff dragging behind you. And even though I've got my credit history wiped, you know, everything nowadays, they want to pull some type of credit. Even buy now pay later is horrible, Jessica. Like that's what I'm saying. You don't need to worry about those stuff.

You don't know. I know. No, you stop saying you know. It's more so the the knowing the availability and you know,

but you only need it, Jessica. You really only need it to go into debt. And that's what we're telling you is

pay cash. Just pay cash for everything and you don't have to worry about it. And if some cell phone company pulls up your credit report, you can just show them the police report and be fine. Like you you can get away with other things, but you you have to be convicted about this, Jessica, you're going to keep getting pulled. I feel like you're getting pulled into it. Even though you're saying, "I know." So, you need to stand firm. Pay cash for anything. It is possible, Jessica. You can do this. And keep things separate from the boyfriend right now and live your life. Get yourself a car. Save up for the semester. Get your college degree and ride off into the sunset. and then maybe get married because you love him, not because of his credit score.

She's been hypnotized. Stop staring at the sun. I love entrepreneurs. Don't forget guys, I started my company on a card table myself. So, I know what it's like to have people counting on you, your team, your family, not to mention your customers. And when you're the one signing the paychecks, you can't afford to fly blind. But I'll be honest, early on, one thing that nearly sunk us was wasting time with spreadsheets that didn't add up because business units didn't talk to each other. I finally told my team, just fix it. And they did.

We got Netswuite. That was years ago, and we've never looked back. See, Netswuite isn't just for tech giants. It's built for growing businesses like yours. Over 43,000 businesses already run on Netswuite, including a lot that started just like you. And now with built-in AI, Netswuite is helping them even more. It's one system connected to every part of your business for real time insights, not guesswork. Netswuite AI flags inventory issues, cash flow risks, even supplier delays before they become problems so you can trust the data, stop wasting time, and make the right decisions faster. Take a free product tour today at netsweet.com/ramsey.

That's netsweet.com/ramsey. Rachel, the allnew Every Dollar is here. And folks, it is truly way more than just our worldass budgeting app. I've been talking about this on the show. I I I got a meeting with the team and I said, "Show me all the

just take me in the thing. Give me give me a tour." And it's amazing. It's literally like

a digital version of us on the show for those who call in. The first 15 minutes of answering the questions that the team provides you in this app, they're going to help you find thousands of dollars immediately in savings. We're seeing this in in an average of people who use it. You can start every dollar for free by going to the App Store or Google Play. Uh tons of advanced features, not just budgeting. Now, that's amazing. But the fact that you got a digital coach, mentor, accountability partner, whatever you want to call it, all those facets are in there. Fantastic. So, you got to go check it out and give it a whirl.

It's free and I'm going to tell you, you're going to love it. Donna is up next in West Virginia. Donna, how can we help?

Hi, uh, Ken and Rachel. Um, I I love all the personalities, but Ken, I'm really glad you're there today. I love the way you spin a tail. You really make me chuckle and I love your your story from a few weeks ago about the welfare chicken. I grew up on a farm and can relate to that.

Thank you. Yes. Thank you. the welfare chicken. You didn't get in trouble for telling them to sell the chicken.

I think I was on there with you during this. I did not get in trouble. And uh I had forgotten about that, Donna. So, thank you. That's really fun. Thank you. You're sweet lady. By the way, I have to ask, where in West Virginia are you?

Oh, geez. Uh Romney. Do you know that town? I I think I've heard of it. Do you know Point Pleasant by any chance?

Oh, that's way far away. We're We're in the panhandle between Winchester, Virginia, and Cumberland, Maryland.

Yes. Yes. Yes. Yes. Okay. I was born in that little teeny town of Point Pleasant, West Virginia.

Point Pleasant 5,000. I know where it is. I've been there. Well, I'm gonna tell you, not many people across the state. Yeah, that's right. Just across the state, but

All right, Donna. Uh my sister from another mister here in West Virginia. How can we help today?

Well, I'm I'm 69 and my husband is almost 71 and um we started our careers in the 70s and at that time people were saying, "Oh, you're so lucky. You have a pension. You'll have social security. You don't have to worry about retirement." So, we didn't uh and we're doing fine now with our pension and our our uh social security, but we haven't saved a lot of money. And we had to put my mother in a nursing home um last year, an extended care nursing home, and it really scared me and shocked me at the cost per month for that stay. And what my question is today, and I've I've been having friends tell me, you know, you need to sign your house over to your kids. uh uh to save it from being taken and and all of this. And I know Dave says that you shouldn't do that. I have heard him I haven't heard him talk a lot about that, but I have heard him say that. And I was just wondering what the pros and cons are to that. And if there

if there's no pros, what can we do? Or is there something we can do to save our house?

Well, let's go back a step. What are we what are we afraid? What are we afraid that's going to happen that would even uh allow us to consider that advice? What are you afraid's going to happen?

Oh, it for the uh signing your house over. Yeah. Oh, well, there's I guess a lot of things. I mean, I've been listening to the sto shoot uh show long enough that uh I know if you have kids if anything happens to your kids then then that can if they're in an accident or uh anything like that. Uh,

yeah. But you're talking about But you're talking about your house. I'm talking about my house. Yes.

And your house. My house that my husband and I own. Sure. And you're worried you're going to lose it to who or why?

Oh, medicare. I mean, if you can't pay, if you go into a nursing home, Medicaid looks,

they're going to be looking at your Now we're caught up. Sorry, we we weren't 100% sure. And the reason we do we say that is because a little bit it feels like you're hiding assets when you just sign it over.

I wonder I mean I don't I know. So yeah, not a great not a great thing because you're basically lying to the government that you don't have an asset when you really do. So um Okay. Do you have long-term care insurance, Donna?

We do, but I got it uh it's been probably before I realized the cost. My father-in-law went into just an assistant living and his was about 3500 $4,000 a month. So when we got our long-term care, it was very expensive anyway cuz I have some health issues. So it was high and ours is only 3,000 a month. Okay.

But then my mom's came up and it was 14,500 a month and I'm like I just I was just in shock that it was that expensive.

Well, um Okay. So a couple things to think about that we don't know yet because how old are you guys? Uh I'm 69, my husband's 71.

So, a lot of different things. Um number one, you don't know if you guys are going to need a nursing home. Anyways, uh number two, if you did get to a point of a nursing home, um you know, there are things you can do. You can sell the house and use that to fund if you need to. Um you there's also what are you guys doing with your pension and all of that? What what do you have coming in

um per month? You mean what we have? We have uh it's like $9,942. Okay. So, I mean it's it's decent. And we did just start

two years ago. We have started putting some away. Uh we bought I bought us and uh my husband a sp I'm still working a little bit. Okay.

And I made enough money to be able to max out both a Roth for me and a spousal Roth for my husband. I did that when we got we got one of your uh pros.

Good. Great. And um he he said to get one we got him in April and he said, "Oh, hurry up and get a Roth before April 15th."

That's right. So, we did that and then when we finally sat down with him, we had enough money saved to do another one for 2025.

So, what do you have to start? What do you guys have total? We have uh 32,000 in uh Roth right now and then we were playing around just during the years and we have about 50 that are uh financial advisor is rolling over about 50,000 that he's rolling over into IAS now that we're still in with the companies that we retired. So just below 100,000 and then what is your house worth?

About 400,000. M okay. Okay. Yeah. So, it would be one of these things if you guys did get into that situation, whether it's the insurance, um some savings, you know, whatever you can put together, um to get into a nursing home. And I'll be honest on it, this sounds it sounds horrible, but there is a stat that once you enter into a nursing home for on average, it's there's not that long of a stay usually. Sometimes it is, sometimes it's not either. So, it is kind of one of the last steps that family members will take if they're not able to care for um you know, their family member. And and so that would be kind of that that last step, if you will. So, if I was in your shoes, I may ask about upping the long-term care. I'm just curious what other options are out there for you guys. Um I would be looking at that because that's going to be very helpful type of insurance for you all if the time comes that you need in-house care,

nursing home, all of it. And you guys also are sitting on a great asset. And you know what I mean? If something were to happen to either you or your husband and you did get to a point that you guys didn't have the money to cash flow it and yet there was a nursing home that you knew we he they needed to be in, you know, him or yourself, there's always the possibility of selling the house, you know, and figuring out what to do there. So,

um, Don, I'm going to give you something. Rachel made a great point. I looked it up. Uh, the average length of stay in a nursing home is 485 days. Now, of course, this varies, but averages do play out.

So, you're looking at about, you know, a year and three, four months. So, you know, it's horrible to but that's the reality and we're talking about that.

So, you know, between the pension and everything. I mean, Rachel, you make a very good point. It's not like you got to fund this crazy amount for five years,

you know. So, um I think you guys are doing everything you can. What How much longer do you think you're going to work? Um, as long as I can. I love it.

Okay. Do you work full-time? No. No, I do occasionally. Um, I'm a teacher and, uh, sometimes I'll take a long-term sub job and sometimes, right now, I'm just doing daytoday. And, uh,

I bet the kids love when Donna shows up to be the sub. You seem like a really nice sub.

So, I hope they do. They always say they do, but, you know. Yeah. Well, that's good. And what about your husband? Is he officially done working or still working?

Yes. No, he's officially done. He's a golfer. He's he's fallen into the golf. I love it.

As much. Good for him. Well, at least there's a little bit of a foreshadowing of watching your mom and how expensive it has been for or your mom or your dad um that you guys can start planning that if that time were to come, how would we be able to cash flow that? So, thanks for the call, Donna.

Uh do we know if people can search welfare chickens uh on Spotify or YouTube and find that rant? Do we know? We don't know. I'm not sure you could try.

Well, they can't. Oh, you all missed it. It was really great. Donna said so. Welcome back to the Ramsey Show in the Fair Winds Credit Union studio. Alongside Rachel Cruz, I'm Ken Coleman. Thanks for being with us. We're here for you. 88825-55225 is the phone number. Let's go to Caitlyn who joins us in Charlotte, North Carolina. Caitlyn, how can we help?

Hi, good afternoon. Um, I'm a recent college graduate from West Virginia University, and I will start paying student loan debt come January, and I want to know what is the best and effective way to go about that.

How much student loans do you have? They will be around $26,000 and is it multiple loans?

Yes. Okay. So, what's the smallest amount? Uh, the smallest amount, I believe, is about $5,000.

Okay. All right. So, what we Is that the only debt you have? Yes, that is the only debt I have.

All right. Rachel, walk her through the baby steps. Are you working? Yes, ma'am. I work a um full-time job.

Great. How much do you make a month? How much do you bring in? Um about a month, maybe maybe $15 to $1,800 a month.

A month. Okay. What are you doing? Um I work at a um boutique. A boutique. Okay.

What kind of boutique? Um a women's boutique. Just a locally owned. Like a spa?

No, like a clothing store. Women's clothing. Oh. Sorry, a little slow on that one.

Didn't know. I was like, well, there's lots of different boutiques. There's like boutique hotels,

boutique spas. Sorry. Fair. Okay. None of this matters. Why do you Why I have a question on your income?

Yeah. That is for a college grad. That is way below what your expectations were, I'm guessing. Yes or no?

Yes. So, I've had this job for about two years. I worked this job throughout college, and that is the job I'm still currently at.

Okay. What did you get your degree in? Uh, business and marketing. So, what do you want to do? And I'm not going to put you under pressure here on a show live, but give me a general idea. It doesn't have to be a company and a title, but describe the work that you went to school for that you would love to have if I could just wave my pencil in the air and give it to you.

Well, the work I would be interested in is going into law school. Okay. So, we went for business and marketing and we're like, n this is not what I want to do, but I'm just going to finish it. And somewhere along the way, we discovered I want to be a lawyer in a specific type of lawyer.

Um, corporate law, sir. Corporate law. Okay. So, a tiein to the business and marketing.

Yes. Okay. What's law school going to cost you? Law school is probably going to cost me around probably $100,000.

And where are you going? I have not yet made my decision. Um, but I'll be taking the LSAT soon.

Okay, great. I want to make a quick commercial and I'll hand it to Rachel. And but you got to get your two things. Number one, you need to get your income up,

right? Yeah. You should be making you should be making double. I don't even care what you're doing. Yeah.

At this point, you need a target of $40 to $50,000. Let's just put it out there. I don't want to limit you to that, but you you just need to get out there and find something because more cash the better. Now, uh, and Rachel will tell you what to do with that cash, but I just want to make a point on the ELSAT. Um, years ago, I interviewed a le a law school expert on this, and this is a fact, by the way. There are certain schools, you're going to have to do your homework on this, but you can figure it out easily, that based on your LSAT score, Rachel, if you get a high enough ELSAT score, they will give you a full ride. And the reason is these aren't the prolific ones. Let me just go ahead and tell you, this isn't Harvard. These not the big time schools. These are the schools who nobody wants to go to their law school. So therefore, they're trying to get people into their law school because they want lawyers out there and

they will give full rides. So these are going to be smaller schools, not as well known, but they have legit law schools. And let me just make my my pitch on this. Nobody cares where you got your law degree from. And so the the tradeoff is Kalin, you have to pay for the LSAT. And if you need to take the LSAT five times, take it. if we're aiming for and we feel like the tutors will tell you

we can get you to this score which gets you a free ride. So that's my commercial.

Yeah, it's worth investing, you know, five six grand or it would be like an like honestly when you think about it.

Totally. With tutors and everything, but I don't know what the current LSAC cost is.

$100,000 degree for free. So yeah. So that's what you need more money for. Yes.

Plus we got to pay off these loans. So Rachel, tell her how we pay off these loans.

And that needs to be your way to law school. Caitlin, I really want you to see that because you're going to be $126,000 in debt if you don't. So, we want to really work hard to avoid all those student loans.

Um, yeah. So, it's getting your income up, Caitlyn. So, I mean, I really hate to say it, but I I mean, I would probably be looking for another job. I think it was a great thing to get you through college, but now that you're a college grad, you know, you made that investment for a reason. And so now we need to go ROI it and we need to go, you know, get a job like Ken said, making 40 50,000 a year and and I would limit all my expenses. I would live on nothing and I would make it a goal to get this paid off in 18 months, 16 months, 14 months, you know, and so I really think you can if you um do you have rents? Are you living at home? What's your living status?

Um I live at home with my family. Okay. So no rent. So, I would take full advantage and make a really really aggressive goal of getting this paid off and then at the same time be looking at the ELSAT stuff and make that also a part-time job. So, I don't know if it's a I don't know right now if it's a full-time job that you go and find, you know, a receptionist. I mean, anything like just go and answer phones. I mean, do something.

Or if you do the boutique during the day and you wait tables at night and you're doing a two two day, you know, a two job a day kind of thing to double this income. But this income needs to be doubled. Caitlyn,

you're a college grad. And I think that you have you have things to offer. And and again, it's it's kind of back to this college degree conversation that

you got your degree for a reason to go and create a career and and so taking that knowledge and going and doing that and upping this income is going to be is going to be your number one goal.

Because Caitlyn, here's the deal. you are young enough uh and this debt is small enough that you can pay this off in a year, but you got to make more income to where we're putting two grand a month away. So, like Rachel said, what must be true for me to be able to sock two grand, $2,500 a month away at the $26,000 loan. Knock that out

and get it out of the way before the interest starts hurting you. Okay? uh because I know people that are that have your amount of loan debt and they're paying it for 15 20 years because they're never catching up because the interest payment.

So, you want to get this out of your life. And I just I'm telling you, if you trust me and you do your research, you can go to law school for free or for a very reduced amount that you can cash flow. And most people don't know that. And please do that because you're going to just be so much more at peace. So, there's your homework assignment. Pretty straightforward, but you got to hustle.

Yep. Mhm. So, thanks for the call. You know, Rachel, that is um I love when we get that call. And I and I'll be honest, I've not interviewed people in other lanes, but I I would almost bet you there's other professional lanes

like that that where certain schools are going, you know, like med schools are going, we want to get people in here. And the sticker price on Vanderbilt, which is in the shadow of our campus here. Yep.

Versus a small school. Totally. Yes. And it's an it's an ego play to go to say someone's like, "Hey, where's where are you going to law school?" And it's a

Yeah. Harvard law that maybe Yeah. Or you're going to one that no one's ever heard of. It take I mean, you got to have some humility to it, but you're doing it in a wise way. You know what I mean? And so there's something just rarely comes up.

Your clients aren't going to go, "Hey, uh, I've heard rumors that you got your law degree from Greenbryer State."

I mean, you think about vet school, law school, med school. I bet George came when he had took his dogs into the vet, he didn't say, "Let me see your degree before." where he said, "Save my dogs." That was all last week. So

that poor guy, you that poor guy and his dogs. It's like a soap opera around here, folks. We don't have time to cover it.

We'll have him cover it, George, if he hosts here in the next week. Welcome back to the Ramsey Show. I'm Ken Coleman and Rachel Cruz joins me and we are here for you. The phone number to jump in isle825-55225. We want to help you win uh in your relationships, in your work, and in your money. And speaking of winning with your money, you know, a lot of people right now, Rachel, are watching what is the Fed going to do? We've seen uh the interest rates on mortgages come down a little bit off of a several year high

and everybody's going, do I buy? Do I sell right now? What do I do? And we've got some great advice for them.

Yeah. And even in the this show, Ken, I feel like we've had a lot of home questions even about like, hey, what's my next step? Well, the the goal is to make your home and home ownership a blessing, not a burden. And so, if you are in a place where you're like, "Okay, I'm thinking about selling. I'm thinking about buying." Maybe I'm a first-time home buyer. You know, having that 5% down payment is crucial. Um, a 15-year fixed rate mortgage is what we recommend. And for your payment to be no more than 25% of your take-home pay, it's kind of always been our formula for for decades, regardless of what the housing market is doing. That just keeps your household budget in a good spot.

But finding a house and specifically finding an agent that you trust who's really incredible and of high caliber in this area is really important. So the Ramsey trusted program really is the only way to find an agent that you can trust to keep you on track with what we teach here at Ramsey. And they're going to get the best offer on your house or is going to help you find the right house. We send you to some of the top agents in your area who we trust and you get to review their stats. You get to interview them and decide which one you want to work for because we have multiple and different markets across the country. Ramsey trusted agents have years of experience and will help you make wise decisions when it comes to pricing, the marketing or choosing the right offer as well if you're getting multiple offers. So to find a Ramsey trusted real estate agent for free, go to ramseolutions.com/agent.

And again, use this resource you guys because this is home buying. Uh for majority of people, it's the largest investment you make in your personal finance,

your personal finances. So, do it well and do it right with an agent that that we trust so that you can trust as well. So ramseyolutions.com/agents.

Yeah, good stuff. Uh, all right, let's get back to the phones. Kansas City is where we're going to go and Jerry's there. Jerry, how can we help?

Uh, yes. Um my question relates to the um national public data breach and what sort of steps u should I be taking to kind of make sure my social security isn't used to open and line of credit uh with that or what what you know what kind of things should I expect to do?

Yeah. Um I mean there's a there's a couple things Jerry you know number one you can just freeze your credit if you're not currently in debt or using debt. You can do that. That's a that's a line of protection. But having identity theft insurance

Yes. Yes. is really really key. It's really inexpensive and so I would recommend going to xander.com. Xander's who we use. They actually they that's one of the benefits here at Ramsey Solutions is every employ every team member gets um identity theft as part of working here. That's how much we believe in it because stuff like this is going to happen more and more. Um so yeah, honestly I would go to yeah xander.com and check out their identity theft protection. Um and I would I would get a policy on you. You got to get a policy of every person in your household honestly too because even kids we're seeing identity theft you know happening within kids as well and people running up stuff on their credit and I mean it's just it is wild. So I would do that.

There's a number here on our screen that you can call as well. Uh Jerry it's uh 800 35624282 3564282. Uh and yeah that's what I would do personally Jerry. And I and then I mean that's that's as much offense as I know to do, Ken, uh on this unless something does happen, then you do have to take action. But if you have identity theft protection, uh they go in and do a lot for you.

So, just to kind of catch people up who may not know the story here, and Jerry, I'm glad you bring this up. Uh just kind of let people know because you need to know. Uh it was widely reported that hackers may have stolen the social security numbers of every American. That's me, Rachel. That's that's all of you. And uh so there is a a notorious hacking group that's that has claimed to have stolen uh a ton of information. And so this is being uh reported uh across a lot of news networks and and you can find this story. So

it happened what two weeks ago? Yeah, just last week actually. Last week. Okay.

Yeah. So uh so that's what you can do. This is how you kind of check. So do that freeze. Just exactly what Rachel said until you can check everything and then go get protected with Xander. Xander insurance. xander.com. 800356-4282. That's 8003564282zander.com. And uh they do a great job. We get an email every month tells us we're good or what might be something we need to check into. And that protection is

and there's other services like Delete Me and other places too um that that are incredible for for online scammers as well. So identity theft protection again you guys it protects your identity, social security, all that. But then you think about how much our how much our information not necessarily social security number but just your address, your phone number. I mean all this I'm getting blown up political all the political stuff and I'm like where did my number get sold to? Like what list is you know is this too? So um there's fullon companies that help people get their information off but it's going to be I mean that's that's part of the curse of 2024 and technology. I mean I don't know about you Kim, but I do I plug in my information on stuff. So whether it's, you know, you're you're shipping something to, you know, or buying something, whatever it is, it's just your I mean, it feels like I'm I'm

putting in my information a lot on websites. And by the way, and just in the overabundance of giving you all information, the three credit bureaus that Rachel's talking about again, Experian, Equifax, and TransUnion. You can just, it's a free deal. Call them or do it online.

You can Yeah. And put a freeze on your credit and uh and and and that will and pull your report once a year, you guys. regardless of whether it's a data breach or not, make sure you pull your and you can do that for free

um once a year. So, use those each of those companies and yeah, get three reports three times a year.

All right, let's uh let's go to John now in Los Angeles. John, how can we help?

Hey, you. How's it going, guys? Good. How are you? Pretty good. How can we help?

So, um yeah, so I've been in college pretty much all my life. I'm about uh 33. be graduating with a PhD next year. My wife just graduated, so she started working. So, it's the first time we really have a real income and a shovel. So, we have $100,000 in debt, no retirement uh savings, and we kind of want to look into buying a house next year when I graduate.

No, but we're not really sure. Yeah. To go with first. No, John, we're interrupting because you're not catching. No,

no, no, no. Um okay John what are y'all going to be making household income together combined?

So right now today combined we make 170. Okay. When I start working it should be 230.

Great. When I finish my posttock because I still need a little bit more. It should be about 280 in about 3 years.

Three years. Okay. But in the next four months 6 months what will it be? Uh still 170 while I'm finishing up my PhD. And when will it bump up to 230? How long?

Uh when I uh find a job, probably next summer. So probably a year. 12 months. July, September. Next year. Yeah.

Is the debt all student loans? It's 60,000 in student loans, 40,000 in car loans.

Oh, okay. What's the car breakdown? What do you own each car? It is 17 and 23,000.

Okay. both pay off in about four years. Yeah. Um Okay. How are you guys? You guys currently are making 170 though, right? Is what you said.

Um Yeah. So take home is 10,000 a month. Okay. And basic necessities is between 3 and 4,000.

Okay. So there's a lot of room there to tackle it. Yeah, for sure. Yeah. Yeah. No, you guys have a great income, which I'm so thankful for, and it will continue to go up. Yeah. I think my goal, John, for you guys, if I was you, between now and next summer, um, is I would be working on these car loans, and you may run some numbers and see what could you sell the 17 for, the $17,000 one.

Uh, they would both break even. So, I was just looking at it. Okay. And I just think

we owe pretty much exactly what we can trade in. Okay. Okay. you know, I mean, to jump start this,

um I mean, you're not overly heavy in cars by any means from our, you know, um math when it comes to to when we look at car debt versus income. Um but I would I would make it a goal, yeah, John, to to be cash flowing the rest of your school. I would make it a goal to start paying off that smallest debt. So, even if it's um a small student loan more before the car, you know, just start working that debt snowball, working the smallest debt to the largest debt. and then be saving an emergency fund and then I would save for a down payment on a home. But but I'm really encouraged though because your numbers you guys can make some significant progress really fast if you stay focused and you guys have a plan.

So tonight lay out a timeline between now and the next 3 years and have some data points to say, "Yep, we want the car, you know, paid off here. We want this student loan paid off here." And and you kind of map it out to know that you guys will get to saving to a down payment ASAP, which is where I want you guys.

Thanks for the call. Thanks for the call, John. We'll be back. This is the Ramsay Show. Welcome back to the Ramsay Show. Rachel Cruz joins me. I'm Ken Coleman and you are listening and watching the Ramsay Show. So excited that you are with us. 888255225 is the number. Stephanie is joining us now in Los Angeles. Stephanie, how can we help?

Hi. Um, happy birthday, Rachel. Oh, thanks, Stephanie. I appreciate that. You're welcome. Um, okay. So, I am a single mother of two girls. I've been a single mom for a long time now. And um I own a business. I'm a professional organizer. Um and I actually like coach um families on how to like keep their lives together. Well, I just am really struggling financially. Um I ended up having to get a full-time job. I long story short, my savings just got drained when I put employees on payroll. Out here in California, it's super expensive.

Um anyway, so I just I don't know the first thing about like good budgeting. I did not grow up my parents like file bankruptcy three times and I'm just trying to um set up a future for my children and I just want to get out of debt. So I need some advice and I want to sell my car and yeah,

that's where I'm at. Okay, I got a quick question before Rachel dives in because she can walk you through this. But I'm just curious. How does a person who is really good at teaching other people to be organized not figure out how to do a budget? I'm not saying that in a judgmental way. I'm just curious where do you think the disconnect is there?

No. Um so I know how to stick with a budget. What happened was I was going uh a custody battle came up in the middle of

Okay. everything and um then my dad got early on to Alzheimer's. This was all like um in a short period of time and it just threw me for a loop and um a lot of my money went into custody and um then I ended up taking out an EIDL loan which I I've never been um like a credit card person, a loan person. Um, I actually kind of got talked into getting a business credit card um, for my business and then cuz I was paying everything cash before that. Um, and the custody battle happened, I put the whole custody battle on my business credit card because I was like desperate. And

um, so yeah, this is where I'm at. And I never coached anyone on finances. I coach neurode divergent families how to like set up systems in their home to keep their homes like functional and how to like live purposely in their home and

yeah so but right now I just I'm just in over my head as far as what what to do my is yeah economy is not that great right now.

What are you making in your day job? So my full-time job um I make$1908 an hour. Um there is it's a sales job. Um I do like interior design and so we do get commission on designs, but I've yet to reach that commission because the whole bonus structure is just it doesn't make any sense. You have to sell at least $80,000 between installs or whatever. I don't know. So I've never reached that. And then my um organizing job, I have um three contractors. Um so I bring in Right now it's not really good. I bring in about um maybe 2,000 a month with that. Um so it's but it's just so slow right now and I just

Yeah. I was making pretty good money and now over the last couple years it's just hasn't been that great.

Yeah. And then you throw in things like a custody battle in the midst of it and

Oh yeah. Yeah. Oh yeah. I pay for everything for my kids. Like I don't get any help. I pay for the cars, insurance, everything. Wow.

Yeah. Well, let me just say, you know, when it comes to your kids, when it comes to your health, like we are all about fighting the fight, right? I'm like, it is you want to you want to do it. Um,

you know, because those are the important things in life. So, that's I want I want to free you and, you know, not pile on any level of shame. Give yourself a lot of grace. So, okay. So, how much debt, Stephanie, do you have? Do you know?

Yes. So, I have my $20,000 EIDL loan that starts payments will start coming out in October.

Okay. Um I owe um almost 9,000 on a credit card. Okay. And then my my car is um I owe about 13,500 on that. And then here's like the really hard part for me. Um

I got behind on taxes. I just got paralyzed with fear, by the way. But I just I got behind on taxes three years. Those are just um finishing up being filed. So I don't know what I owe on that yet.

Okay. Um so I'm waiting on that. So those are my those are my debts. And And you're making 2,000 for your organization business. I know you're making 19 an hour for what you're doing. But do you how much how much will you bring home a month with that full-time job? So each check is about 1,200 and some change after insurance and all of that.

And you get two checks a month. Each every two week, correct? Yeah. Okay. Okay. So it's a little less than five grand. And have you been able to map out? Are you able to pay your bills, Stephanie? Meaning your your mortgage, food lights.

I don't even I don't even have a mortgage. I So my rent I'm actually in a great situation as far as that goes. I I live in a two-bedroom apartment. It's um 1,200. I've like refused to move because I'm so like nervous. I wanted to get my, you know, finances in order first. So 1,200 for rent.

Yeah. And then um and then 404 for my car payment and then of course utilities and all that stuff. But

how much is How much is your car How much is your car worth? Do you know? Um I'm not exactly sure. I did look on um like what other people are selling my car, my type of car for and I saw anywhere from 15 to 19.

Okay. So, yeah, here's what I would suggest. I feel like for you, Stephanie, a good um a good win would be just a quick win to feel some level of traction because you're going to start to make some changes, right, when it comes to your money and those changes are going to be uncomfortable because you've never done this before. Um, but the fact that you're not underwater on your car,

I mean, man, if you could get if you could get it. Yeah. I mean, if you could get 19,000 or something for it and go get a crappy $6,000 car, that takes $13,000 of debt, that's gone. Just gone.

Um, and then and then looking at Yeah. your credit card, attacking that next. Um, and then the the loan after that, the $20,000 loan. Now, when your taxes come back, Stephanie, if you can't pay them by the tax deadline, go get a personal loan from the bank. I would rather you have a personal loan than owing the IRS. Okay? So, that will be a step.

Okay? And what you're going to do is pay off the smallest debt to the largest debt. And and again, the car I think would give you some traction. Do you have any savings?

Uh, no. My putting employees on payroll just drained my savings. I had about Okay. So, you have nothing grand in. You may want to reook too. Um

I wish we had more time with you. I I would reook maybe the structure of your company. I just I don't I don't know if it's

for sure. Like I it may Stephanie that you just say yeah that you that you close it down for now. I mean like is there something you know is there a way

um to just take that burden off? You're just carrying a lot and I'm just trying to relieve some margin for you.

Totally. So I do not have um any employees on payroll anymore. Okay. Um, it's all contractor job. Um, I just, yeah, I just contract. But to be honest, I am thinking about just going back to

because it is stressful like owning a business. I've had it since 2016. It's really It's a great business. We were like all around California as far as like our um uh reputation and stuff, but I just I'm still stressed about it. So, I am thinking about stepping back and just

working full-time and, you know, maybe taking on jobs by myself for like extra income. Um, but as far as selling my car, that was actually what what the reason why I called you. I wanted to see if you thought that that was a great idea.

I probably would honestly. I mean, that would be such a relief not to have that car payment every month.

Yeah. What is the payment? What's the car pay? 404. So, it's a 404. I mean, listen, Stephanie, how much would you love a $400 raise

per month? I would love to just like take that 400 and put it into like the rest of my debt and just No, that's right.

If you if you stay on the line, Kelly and Austin are going to pick up. We want to give you Financial Peace University. It's our nine lesson course, Stephanie, and Every Dollar Premium. It's our budgeting app. And then also I'll have them connect you with a financial coach in your area because I know as a single mom you're juggling a lot and I think sitting down with someone um who has the heart of a teacher who can walk through really specific numbers and scenarios and it may only just take one session but it's better than a you know a 7 minute you know chat that we were able to have here on the show um but we want to connect you with some of that stuff Stephanie cuz you're on the right track.

You're like right there and you got to just start making those steps and you're going to feel a lot of traction. So we're excited for you.

We're going to take care of you. Thank you for calling. This is the Ramsay Show. Welcome back to the Ramsey Show. I'm Ken Coleman. Rachel Cruz is with me in studio this hour. 888255225LE8825-55225 is the number to jump in. Our scripture of the day comes from Titus 2 verses 7-8. In everything set them an example by doing what is good in your teaching show integrity, seriousness and soundness of speech that cannot be condemned so that those who oppose you may be ashamed because they have nothing bad to say about us.

And our quote of the day from Les Paul. Don't say you can't until you prove you can't.

All right. How about that? There you go. There it is. There you go. Thomas is joining us in Asheville, North Carolina. Thomas, how can we help?

All right. Thank you guys so much for taking my call. Sure. What's up? Um, so um my father uh has planned a vacation for this summer for the whole family. I'm married. We have two children. My brother's married. He has three children. Um he gave us a little bit of heads up on it. Basically just asking when the kids would be going back to school and then he planned this trip uh for the end of summer. Um we're right in the middle of baby step two. We should be debtree by looks like November. Um he's paid for the location and like lodging and everything. Um, but my main concern is, um, I work like 70 75 hours a week.

Wow. And, um, I don't have any paid I don't have any paid time off. So, my my main concern is is missing that income

um, while we're on this trip. Um, so I was kind of hoping to get you guys advice on that.

So, before dad comes to you with this vacation idea, what was the plan? What were you and your wife thinking about summer? No vacation.

Yeah. Yeah. I mean, we've been we've been busting it just trying to get everything paid off.

It's gazelle intense. Yeah. So, I'm going to I'm going to oversimplify it because I think this is the key issue. You weren't going to go on a vacation and and we agree with that. You guys are going hard. Man, you're working 70 75 hours a week. That's impressive. And you weren't planning to anyway. Now, Dad's asking you to do it.

Wait, I that's what I not to jump in. Did he ask or did he tell you guys? Well,

did he say Well, that's that's an interesting part of it. a little bit of both. You know, the like my my brother has children. Our our our children have never met their cousins. Um he's kind of really loving the whole grandpa role and kind of wants everybody to get together. They're getting a little up there in age. So, he kind of looked at it as an opportunity to get the whole family together one last time and have all the grandkids in one place cuz my brother lives a thousand miles away from where I live. So,

yeah, I would So, I think Well, I'll tell you what. I'll I'll ask one other question. I want I want Rachel to see what she says here. Um, is he paying for everything or just the lodging? Meaning you guys would have to pay for the travel to get there plus meals.

Um, food. He He's handling food and lodging. Um, because I'll be doing most of the cooking. That's kind of how it's always worked out is he buys the food and I prepare it. Um, but we I mean we'll basically just be responsible for gas to and from. So, it's the not so much the expense of the trip, but the the missed income.

How many days will you guys be gone? Uh, six or seven depending on when we travel back.

All right. The only other question I have is can you Man, you're already working 70 to 75 hours.

Wants you to have a vacation. I Yeah, but they weren't planning on it anyway. I know.

So, so I This is not so much like an opinion. It's It's advice. And I think I would I would do what you believe is right to do. And I think I know the answer to that.

I don't think you want to go, Thomas. Right. I don't think you do either. I I really do. Um I really want my kids to meet their cousins. And I really want, you know, my parents the opportunity to have all their grandkids in one place because they're, you know, two, five, six, and seven and they've never all been in one place at the same time. But

um but I mean I'm just I'm concerned about But would a week Hold on. I'm going to be devil's advocate here for you.

Hold on. Be devil's advocate. Say I want him to finish that sentence. Okay. Go. Go Thomas. Sorry I cut you off.

I'm We've been working really hard and I'm just kind of I guess very apprehensive about what that month's budget will look like with you know several hundred dollars missing from it. And I don't want that to take away from what the experience is supposed to be if I'm there, you know, worried about that.

So, have you added up how much money you will lose out on being there? Um, probably about $1,100 or so, and that's

okay. Not counting the gas to and from. Sure. Sure. Um, and how much how much debt do you guys have left? Um, we've got about 13,000 left.

Okay. Um, what would it do to your budget? Would it stress you out without the 1100? Would that make it super tight?

Um, not particularly. We still have to factor in like um, we haven't, you know, the kids back to school stuff is going to be that month and the month prior to that in August. So,

kind of just I mean, it feels like it would be here. I know. Here's Okay, Thomas, you got to do what you got to do. Here's my here's my devil's advocate.

No. What would you do to be with And again, this is if you want to, Thomas, if you feel guilted, if there's some weird emotional thing, if Dr. John Deloney was in here is asking you like psychology questions of family stuff, right? Like, if it was just a healthy situation, I think giving up $1,100 to be with family for one week, because it doesn't happen. It's not like this is a yearly tradition, would be worth it. for a family situation like that. And everything is paid for. Now, if they're making you pay for everything, that's one thing. You can't afford to go.

Everything is paid for. And maybe you go half the time. Maybe you and your wife say, "Hey, we're going to go for four days." And there's something about living life still. And this isn't taking you guys deeper into debt. It may it may slow it down for three weeks, the debt snowball.

I agree. But there's something about the situation feels the situation just feels so unique

that that it's not going to happen. And for $1,100 a part would say, "Oh my gosh, like go be with your family."

I agree with that. If that's what's going on, Thomas, if that's what Thomas wants to do, I don't know if Thomas wants to do it, but

let's ask him. Thomas, we we definitely want to. No, I forget the want to. No, here's what I'm asking. You're working 70 to 75 hours a week. Is that to pay off the debt faster or is that to make ends meet? And the $1,100 is going to make things super tight. And it makes me feel like that's the case when you're talking about school supplies and $1,100.

No, $1,100. No, hold on. Let's let me answer. Well, no. I mean, if I wasn't if I was working 40 hours a week, all our basic

our our budget could sustain on that. the extra just the gazelle intensity because we're put we're putting about anywhere from an extra probably 1,500 or so per month on the

back to Rachel's point a month behind $1,100 not making that is not going to make life tight. It's just going to slow the snowball down.

That's right. Yeah. Then I would I agree with Rachel now that I have the facts.

Wow. You didn't let me I was trying to get the facts through the life raft and Ken said sure Rachel. No, I actually agree. I just needed to get to that point though. I couldn't tell emotionally if he was what's the 1100 doing in this case. I think because the kids have never seen each other before. Dad and mom are getting older. All the things you already said very well.

Yeah. I Thomas, I'm okay with that. And and honestly, Thomas, take four days of a paid for vacation as a gift of a little bit of rest, too, right? I mean, y'all been working like crazy, which is amazing. It's exactly I'm

so proud of you. But there this is a unique thing and I I I agree with you. I would say go. You've only got one shot around this globe and I would do the family vacation knowing that the $1,100 um

you're not going to have that the subtraction of that is not going to make things tight to where you can't enjoy the vacation. And I also want to point out, Thomas, I would like to vacation with you because I'm all for buying the food and you cooking it for me. I would like to point that out, Rachel. This guy's great to vacation with.

It sounds great. Hey, THOMAS IS COMING. GREAT. LET'S GO GET THE BRISKET. You know, Thomas, here you go. Uh, how do you feel now? You feel like this is the right move. You gonna do it? You got to talk to the wife. What's the story?

Yeah, I I'mma talk to her about it. I think it's there's a mentality shift that needs to take place because I've been we've been doing this since August.

Yeah, I think it's a memory and I don't want you to and I don't want you to lose momentum either. So, just see this as like a quick pause, a breather,

paid for a vacation, and then you're back at it. But I think the the scope of family and cousins and all of that, there's something really special there that I would hate for you guys to miss out on because you wanted to pay off debt one month later.

That's right. And I'd make the old man cook one meal for heaven. Maybe go half the time.

All right. Good hour, Rachel Cruz. Thank you, James Charles and our team. Thank you, America. This is the Ramsay Show.

Questions about this episode

Who speaks in "You Don’t Build Wealth by Ignoring Basic Financial Principles | December 30, 2025"?

Ken Coleman (Guest), Rachel Cruze (Host), Dan (Guest), Aiden (Guest), Sam (Guest), Henry (Guest), John (Guest), Stephanie (Guest).

What is "You Don’t Build Wealth by Ignoring Basic Financial Principles | December 30, 2025" about?

This discussion emphasizes the importance of applying fundamental financial principles to eliminate money stress and promote wealth-building strategies, particularly in the context of retirement planning. The hosts provide practical advice and encourage individuals to use available financial tools, like Every Dollar, to take control of their finances and celebrate important life transitions.

What is mentioned in this The Ramsey Show episode?

94 people, works and ideas are mentioned, including Rachel Cruz, Mario (Sherry Coleman's brother), Ramsey Show, Every Dollar, Fair Winds Credit Union, Xander Insurance. Each one on this page links to its own page with every episode that mentions it.

How long is "You Don’t Build Wealth by Ignoring Basic Financial Principles | December 30, 2025"?

The episode runs 2 h 6 min; the transcript is about 24,870 words in 481 timestamped sections.

More from The Ramsey Show

About this transcript: the episode's spoken words as captioned on YouTube, split into timestamped sections. Reclip.Me locates every person, work and idea in the text, keeps the time it is first named, and quotes the words around it verbatim. Last updated February 9, 2026.