Investing Isn't Something You Want to DIY

by: The Dave Ramsey Show

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[Music] sacrifice determination you can be intentional about your character your work ethic you gotta be on the same page today we're calling to let you know we're debt-free how's that ever you have done really really good and you're not gonna quit been a huge witness for us to be able to share that it was time to get serious intentionality people

this is your show America I knew it 22 what I know now our life would be better is the show that's changing the world you live it live from the headquarters of Ramsey solutions it's the Dave Ramsey show where dad is dumb cash is king and the paid off Home Mortgage has taken the place of the BMW has the status symbol of choice I'm Dave Ramsey your host thank you for joining us open phones at triple eight eight two five five two two five that's triple eight eight two five five two two five Maureen is with us in Syracuse New York hi Maureen how are you I'm doing fantastic Dave I can cross off my buckle is talking you today well I'm honored how can I help well I want big fan on baby step six and I really like a millionaire theme hour and one thing I'm always wondered about it I work for a school and we'll have a pension if I don't work you know I'm expecting maybe around $60,000 I just didn't know how to calculate that into my net worth well technically you wouldn't but you could I mean it's not a big deal either way the only way I would know to do it is if they give you a present value meaning the amount you could take if you did a lump sum roll out do they give you that amount they do I'm not aware of what that is I you know I haven't looked into what that would be yeah I got more years before I retire you know right and but if they'll give you the lump sum of what you could take with you were you to roll it out and by the way you might by the way you might want to do that and roll it out roll it out to an IRA then you own it the reason you technically wouldn't put a pension in the net worth is it doesn't survive you and you really can't do anything with it except spend the monthly dollars you don't really have actually you don't really have the actual asset in your control but that's a technical thing it doesn't matter I mean you're just trying to calculate you know you're how you feel about your position and certainly the fact you're getting a monthly income you know from this is a big deal so you know it's a nice thing and you know I just if you want to put it in there the easy way to do it is find out what they would roll it out for so good question Erica is with us in Detroit hi Erica welcome to the Dave Ramsey show I all right what's up well I purchased whole life insurance about three years ago I'm sorry yes and I didn't like the company they weren't very offensive and so I switched this year to another company I like the agent but I'm 55 years old these terms term life insurance still better sure always better how's that work always better well the question is the first question I've got is why do you need life insurance so my daughter okay something happens to me or someday how old is your daughter 31 she can take care of herself she can't afford them once on her own right now I was curious there was something for my final expenses why can't she live on her own if she's 31 she doesn't make enough money with her work mmm good job yeah you don't need life insurance except to take care of your final expenses and that would only be if you don't have any money you have any money not really none I get a pension and I get Social Security you don't have any money record that you have any money in savings I had $400 saved this month this past month and I had to take it out what do you make a year I just had around 27,000 okay well what I would tell you to do is get a very small term life insurance policy very inexpensive enough to cover final expenses only and that's all you would need to do and keep that as inexpensive as you can you don't make a lot of money and you don't need to be spending all this money on life insurance in your situation because you don't have anybody's counting on you to eat that's not an adult and shouldn't be doing their own thing 31 year old should be supporting themselves unless they have some kind of a massive disability or something and this one doesn't she just doesn't have a good job so I I want you to work on your career and your income get your income up and build you up start to build up a nest egg you're only 55 years old you're younger than Oh 65 I misunderstood okay five okay well I want you to start building up a career I'm retired okay all right now that does that is different so you're $27,000 income is your Social Security in your pension yes sometimes it was a small pension then nine hundred and forty-one dollars I think in 15 cents all right yeah I I would get a very inexpensive small term life insurance just to cover final expenses that's all you don't need to be buying life insurance at 65 years old on to support a 31 year old that should be gainfully employed that's a very simple basic thing and you need the money to eat with and if you could save up out of this you have a very tight budget and a very limited income but if you could save up anything then you could do away with even the need for a term policy if you had $10,000 and savings to bury you you wouldn't even need a term policy so but if you can get a very small and expensive term policy that's what I would do and I definitely would avoid any kind of cash value insurance you don't that's very very expensive and in your situation you really can't afford to be taken to the cleaners by these guys mark is with us in Richmond Virginia hey Mark how are you I'm good Dave good afternoon thanks for taking my call my pleasure how can I help I've got a question regarding some rental properties I have four brothers and my mother owned seven rental properties that were owned free and clear no mortgage on them mm-hmm three of my brothers want their cash out of the situation one brother and I want we'd like to keep the property as investments for the future mm-hmm so obviously it's going to require a large amount of cash to pay them off mm-hmm so the way I'm saying it is I would probably have to take out a mortgage I just wanted your advice or your words of wisdom on what to do or not to do in the situation what is that total equity in these seven properties somewhere around a million five okay so why couldn't we sell off some of them and you take one that's cleared as your part and a little cash well I guess that's always a possibility and if there's some you know there's a million and a half equity to be split among four brothers there ought to be enough equity there to clear one of these properties as your portion because your portions four hundred grand give or take between three and four hundred thousand dollars so if there's a three hundred thousand dollar paid property that you would like take that property if it's paid for or take that property as your complete settlement and then let them do what they want is with the rest have them deed it over to you as your pressure cut right if let's say there's a five hundred thousand dollar property with a two hundred thousand dollar mortgage you take that property and some cash for your portion or that wouldn't be right you know you got you're only going to get four hundred three three or four hundred grand net equity to you out of this but anyway somehow break it out to where we sell off some of them and the cash goes to those guys maybe you end up with a property in a little cash or maybe you end up with just a property but I'd pick out a property that end up with paid for out of this there's a lot of money on the table here there's no reason for you to end up in debt this is the Dave Ramsey show [Music]

[Music] there's too many business owners they're stuck and lonely and isolated and I know if we can get to them and get them this information it'll make a difference if you ever gotten home and you worked your tail off you have no idea what you did because you not managing your time and the business is running you instead of you running it we've been there we can show you the way out a strong leader with a strong team can accomplish almost anything but we have to get our minds right if you can get control that person in the mirror you can change your behavior or you don't allow people to steal your times it was about you intentionally imposing your will first in your own line and then on the marketplace it is your price you deserve to win we are in leadership we are fashioning a culture so that people could achieve after you you could change the whole culture of the company and actually learn something together it's a cheap sheet everybody will be speaking the same language if you're stuck and you need a breakthrough what's gonna be that breakthrough one chance you entre leadership one day it's gonna be mammoth it's gonna be huge gonna be life-changing don't miss it getting your money in order can feel a little overwhelming that's why Dave created the baby steps they break it down for you and show you exactly what to do next baby step two is where you get rid of all of your debts one at a time using the debt snowball in the debt snowball you list your debts smallest to largest by amount owed pay minimum payments on all of the debts except for the smallest one and attack it with a vengeance I mean go ninja crazy on it once it's gone take the money you were putting towards that debt plus any extra money you can find and attack the next set on the list once it's gone take that combined payment and go on to the next debt knock them out one by one the point of the debt snowball is behavior modification when you ditch the small debt first you see progress that will get you fired up soon the second debt will follow and then the next when you see that the plan is working you'll stick to it by sticking to it you'll eventually succeed and becoming debt free think about all the passwords your brain has to remember it's impossible right so instead of coming up with new passwords every time you open an account most people just give the same password over and over and over again that's not a good idea remember the yahoo breach you know that one breach alone affected over 3 billion users yeah that's why I'm a huge fan of LastPass LastPass generates and stores and creates strong unique passwords to keep you safe and secure no more guessing your password and getting you locked out of your account LastPass manages and organizes all your accounts with your logins and unique passwords in one safe place you can access them from your computer or your mobile device I personally use LastPass and I love it so join over 13 million LastPass users including myself and start managing and securing your passwords today try the LastPass premium for personal use or LastPass families for your entire family visit LastPass calm slice knife and try it for free hello America and welcome to the Dave Ramsey show I'm George camel thank you for joining us here on our video channel whether you're watching on YouTube Facebook Dave Ramsey comm or the Dave Ramsey show app we've got a great crowd in Lobby today a lot of good-looking people here visiting us in Nashville Tennessee we're grateful for it we've got a debt free scream coming up later this hour these lovely folks from Missouri or here Gregg and Pamela and Ken Coleman joins me at the top of the 3rd hour you don't wanna miss it keep tuning in more of the show coming up [Music]


[Music] Michelle was with us in Indianapolis welcome to the Dave Ramsey show Michelle how are you I'm great thank you good how can I help I have a question about trying to help my mom find a an old life insurance policy it was for herself she worked for the state of Indiana for almost 30 years and she paid into a life insurance policy that they offered for her and she's retired now and I'm wanting to know how I would be able to find out if that is even active anymore or if she's even if there would even be a benefit after so long do you know how I would find that out Wow no there the the place I would start is two things one I would go back to the state obviously if you haven't already done that and ask them if they have any records or knowledge of the company or you know history of the benefits package and that kind of thing which would indicate the company that she might have had this with and then you could contact that company that's kind of a you know I guess an obvious thing you may have already done all of that the second thing is rattling around in the back of my mind like two decade old information is or 15 year ago information is there is a website or there was a website that allows you to search life insurance companies for a policy typically people will use it after someone's passed away and they don't know if they had insurance and they can't find any policies but they seem like dad said he had something I just don't remember what it is you know and you could jump on this site and it would search sometimes if that's not there and I you know only thing I know how to just google that and look for it but like a database a life insurance search tool or something like that there is one Kelli shaking her head so she's in there googling for me right now so but I I think that was there and I haven't looked at it in enough years to know how it works or anything the and then the lastly life insurance is largely a no it is not largely it is a state regulated item and so your state life insurance department or your State Insurance Commission may have record of the type of policies especially since it was a state benefit that so I would check the state benefit the state government benefits Department and try that first I would check you know google and see if there's a site the Kelly shaking her head yes she's going to type it on here for me maybe so I can tell her what it is I'd be good and the and then lastly I would go to the Insurance Commission but it's a bit of a detective thing Kelly says it's in a icy calm in a icy calm which I'm sure stands for something I'm sure the eye says insurance or something like that so yeah I know it used to be there but I hadn't looked at Kosh it's been at least 15 years since I've looked at that but it's really handy to do that the other one that's kind of handy that's a kissing cousin of that is you can go to the dot gov if you lose savings bonds and they the the savings bonds people have an excellent gov site for searching up savings bonds that were in somebody's name because people lose them they forget if they have them and that kind of a thing and if you don't have the actual physical bond you haven't lost the money they're not technically bearer bonds and so you know it's just losing stuff like this is a problem and not keeping track of your financial stuff so that's what I would do is those three things but that na IC comm will probably tell you if there was a policy enforcer is a policy enforce state benefits people really ought to have some kind of a record even if it was a few years back you know so hey thanks for the call we appreciate you joining us Kasey's on Facebook says Dave what do I need to know before purchasing long-term care insurance well number one we recommend you buy long-term care insurance which is basically nursing home insurance or in-home care those kinds of things if you're 60 years old or older you have less than a 1% chance of using it prior to 60 years old so I just would not buy it prior to sixty and I wouldn't put my money I love and thoroughly endorse long-term care insurance but I tell people not to buy it until they're 60 but here's the statistics seventy percent of people over 65 will have some kind of long-term care insurance you need nursing home care in-home care something like that the average time spent in a nursing home in America is two point four years and only 24 percent only 1/4 of the people spend more than three years so very careful there you don't have to have I wouldn't break the bank to get ten years of coverage most people are buying five years or three years of coverage and in you know a high percentage of the cases that's going to take care of what you need so three four maybe five years of coverage women tend to live longer than men statistically and so a lady might get a little bit longer coverage than a man the actual stats are seventy percent of you ladies will outlive your husbands and so seven out of ten times what happens is Papa goes into the nursing home if there's not long-term care insurance it cracks and scrambles the nest egg because the nursing home you know be fifty grand a year right and if he spends three years in the nursing home that's 150 grand and if there was 200 grand save the nest egg just got cracked and scrambled he dies leaves mama with no money because the nursing home took all the money now nursing homes are not evil if you go to a restaurant and eat you pay for the meal if you go in a hospital and have surgery you pay for the surgery if you go into a nursing home you're buying services from somebody that's providing it it's not evil and the only way the government pays for it is if you're poor they have welfare nursing home if you want it Medicaid nursing home it's only for poor people and no you can't give all your money away and act like you're poor if you're not I'll give it all of my kids so I don't have anything that way the governmental that way I can be on welfare when I'm old oh brother not only is that him it's called welfare fraud Medicaid fraud they have a look back for five years as if you gave your stuff away in order to get government funding when you didn't deserve it because you weren't really poor so get long-term care insurance absolutely and 70 percent of claims are for in-home care now if they have started to realize in the industry how important in-home care is it's a big deal big deal and it just takes you know it well the quality of care is higher typically the quality of the attention you get is higher you get stay in your home hello that kind of stuff and so this idea that somebody goes in a nursing home and stays there 15 years is highly unusual statistically improbable so that's some things you would need to know you're buying three four five years worth of coverage and that's gonna cover you seventy to eighty percent of the time for your need and only 70% of the people ever have a need that's one third don't have a need ever they die without needing nursing home care or in-home care and so that's what you're looking for so really you're are buying insurance for a one hundred and fifty to two hundred thousand dollar expense that's what you're doing and so if you've got two million dollars and you want to self-insure through that you can't you can you got two million dollar net worth and you got plenty of money you want to self-insure through a two hundred thousand dollar problem you can do that you can do that and probably something to look at you know but long-term care insurance is a vital part of financial planning because of what I just described again seventy five percent of you ladies outlive your husband's seven seven to seven out of ten three quarters roughly somewhere in there Papa goes in the nursing home spends a couple hundred grand uses up the nest egg mama is there broke when Papa dies and that's not a plan so that's how it unfolds most of the time and or they end up in Medicaid nursing home because they're completely broke when the whole thing starts meaning welfare so that's what we're looking at and you need long-term care insurance and you need to go get it when you're sixty years old that's the deal there that's what we want you to do so hey thanks thanks for the call or rather the the Facebook post there Casey you can follow us on Facebook comm slash Dave Ramsey about five million of you do we put some content out there some questions or answered we answer some questions here on the air from some of the interaction with you guys certainly you can follow me on Twitter at Dave Ramsey about 900,000 of you dude thanks for doing that and we jump in and answer questions there occasionally mostly here on the air this is the Dave Ramsey show [Music]

so you've probably heard me talk about never lease a car we call it fleecing a car why is that well there's several reasons number one Smart Money Magazine my calculator Consumer Reports all say leasing a car fleecing a car getting fleeced is the most expensive way to operate a vehicle now think about that what that means is there's some math involved now here's the deal the vehicle is worth X number of dollars let's just pick a number it has a MSRP of $25,000 and you lease the car then at the end of the lease you can either buy the car out at the remaining dollars owed called the residual value and own the vehicle or at the end of the lease you can turn the car in now obviously if you think about it you're paying monthly payments on this car as you go along called lease payments right you're actually renting the car and you can turn it back in it sounds kind of good until you actually run the math on the thing because here's the deal you know that when you turn the car back in or when you write a check and buy the car either one at the end of the lease you know a hundred percent that the car company did not lose money so basically what you're having to pay for during the term of the lease a three-year lease is how much the car loses in value do three years plus you have to pay what's called cost of capital which is the equivalent of interest rate on the money that you've had borrowed during that time is you've got twenty five thousand dollars of their money for that entire time and so you know three years of twenty five thousand dollars worth of interest cost of capital is built in here's the thing all of that works if the lease rate of the capital costs to capital is zero and you breakeven on the car hypothetically it works never comes out that way almost all leases when you run them through a financial calculator have a cost of capital north of fourteen percent yeah you're borrowing money on a car at fourteen percent that's effectively what you're doing that's stupid that's a stupid straight up mathematically dumb and let's just say it's ten percent let's say it's seven percent it's a car loan people that's all it is and you're not going to win borrowing money on cars because cars go down in value second major problem of the car fleece is they only work on new cars which guarantees that the depreciation almost all of it occurs in the first two years is gonna hit your paycheck hit your payment amount which hits your paycheck so it doesn't work except on new cars which we tell you not to buy a new car anyway because of the heavy depreciation unless you've got at least a million dollar net worth and on top of that you're paying ten twelve fourteen sixteen percent cost of capital and you'll never know what the cost of capital is unless you know how to run a financial calculator because since it's technically not alone Federal Trade Commission laws for disclosure on loan document issues like the interest rate term and all that stuff that you see on a regular car loan they don't apply to leases so the car companies love leases they make more money on leases than they do on the sale of cars tons of research shows that tons of articles out there show that consequently you know what the number one thing they do is they sell you a car lease you know the number one thing people buy is they buy a car lease doubled um you're buying a new car going down in value like a rock and you're paying a premium and cost of capital stop it think more clearly than that we take these very strong stances on the air that are countercultural about death about adjustable rate mortgages about 30-year mortgages and we're like this is the way to do it our weird stance has forced you all to become a weird mortgage company I've had the experience of having too much debt as you've had it and so once you've gone through a very difficult financial crisis in your own life you either learn from it or you doomed to repeat it we focus really with intensity don't try to work up a plan that helps them get out of debt rather than spend their life for the mortgage loan the game plan is not to keep you in debt as long as I can the game plan lets you get this home but then let's get it paid off the feeling of freedom is amazing have deep down in your chest you you feel it that the borrower is slave to the lender when you're free [Music] a serious crowd of 40 people deep has assembled here in the lobby and it's for a good reason Greg and Pamela are behind me they're here from Poplar Bluff Missouri and they are debt-free and they listen to the Dave Ramsey show on K WOC 99 3 and here's the amazing story about them they first heard about Dave listening to the radio and then they bought Total Money Makeover and then they started listening to the podcast every day next thing you know they're dead free can't wait for you to hear their story as they share it with Dave and millions of listeners right now life is an adventure emotionally you just been through the wringer not afraid of hard work and you have note that everything in tasteful a very very well done you did the hard work and you've done so good you know when you've had it that something has to happen inside of you slow and steady live on less than you make believe that it can happen it does happen every day in America you are the answer God's blessings pouring to and through you are the answer [Music] in the lobby of Ramsay Solutions Greg and Pamela are with us hey guys how are you great how are you welcome welcome good to have you where do you guys live Elsinore Missouri okay what's that near which is near what three hours for me anything what direction I'm near the Boot Hill okay all right cool three hours from Memphis three hours from Paducah three hours from those across the bottom okay guys your fun well welcome you guys and all the way from there to do your debt-free screen Amy love it how much have you paid off thirty nine thousand dollars well thirty nine 704 I believe is the exact figure okay and how long did this take nine months Wow good for you and your range of income during that year about eighty thousand okay cool what are you to do for a living i run a rescue mission on the director of a rescue mission Wow and I'm a stay-at-home wife taking care of him love it very good job very cool what kind of debt was the forty thousand unfortunately most of all his credit card even simmered it was credit card in consumer day yes okay all right very cool goofball stuff got you so what happened nine months ago that gave you this wake-up call and you went I'm gonna pay all this off well it's almost a story of two families my my father passed away in oh five and I thought they were my parents were rich and I found out they were in debt and my wife's father passed away later on and we thought I thought they were poor and they were actually rich and my mother-in-law has done well and then my mother died about two years ago and we got we didn't end up having to pay it but she left it tons of debt yeah and I'm like I don't believe this I'm I'm not going out this way I'm not leaving this for my kids to have to go through and we're just not doing this we're almost 60 years old we're supposed to be big people be grown up by now that's good so what happened then nine months ago you guys got on a plan tell me about it well part of the story is we actually paid off debt and then we'd end up back in debt again paid off debt and it was like we woke up on January 1st somewhere like this is ridiculous we started listening to you actually he had picked up your book at a Family Life weekend I remember back in 13 mm-hmm and in about 15 he started reading it I hadn't read it yet so then and when we decided that in 2017 I started reading your book and every day we listen to the podcast where we went we listened to the podcast roots until the debt free scream and we begun we're gonna do this now so that's what put us on this journey and we wanted to die without any doubt about our kids I mean we may not be able to build a lot of wealth for them because we don't have a years left but at least we want to go out with hey we don't know anything Danny there you go I like it that's good what legacy starts to be important amen absolument swear you are so good stuff very good stuff so did you have money saved nothing so you did all of this by being on beans and rice cuz you about forty thousand and nine mile making eighty we were on beans and rice of course I work in a rescue mission so there's lots of food there actually we were not living on a budget and we began that process and using every dollar like we had a pay raise honest-to-goodness we would hear people say that event until you do it you don't realize it is a pay raise and I don't know where the money was going but apparently we were just flipping through our hands because we woke up and realized we're back in that again mm-hmm we made when we realize how much money we had extra each month we could have been paying things down and no need to use credit cards you know um but then we sold a piece of property Oh the property by about 15 okay that helped bump it out but it was such a we didn't want to do it we've had that property for 15 years it was like it was on the lake and we just wanted to keep it we really wanted this property mm-hmm but that property turned into two couches a Sleep Number bed and a cruise so now that it's gone and that killed us that killed me I I just about cried over that one I'm like I can't believe we traded a three acre piece of property for things that are totally gone except for the fair and family life marriage cruise that was a good thing for where are you I'm good for you guys fine so will you go back in debt now absolutely never we made a vow to God that we I don't care what happens I don't care if I have to crawl the work on my hands and knees I will never go into debt again for anything well in your honor you're on a budget so you don't have to imagine you got a plan not only do you have the determination but you got the plan yes and one of the good things that happen that I just have to share is the way we have not seen our two grand kids our grandkids live in California and Virginia since 2016 Wow and that was a really hard cider place I can imagine yeah but now now we get to go and the very first thing we did when we were out of debt is we bought plane tickets to go to DC and we paid cash for absolutely and go like this so you've already gone no we're going next month all right very cool cash we paid for a cruise this year's cruise on cash everything we did that's a cash we if it's not cash we don't have it I love it very cool and the worst this is almost the most embarrassing thing is we're almost 60 years old and we're so proud of ourselves we have almost $7,000 in the bank for our three to six month emergency fund it's embarrassing to be almost to be 60 years old and that's all we have in the bank will because we never knew it was never important to us what would be more embarrassing is to be where you were nine months ago thank you Jesus I'm proud of you I'm not embarrassed I love it I'm proud of your going places how long you two been married 39 years on June 26 then this year you just got us beat a little bit sure and then our coming up on 38 we think about that and we coordinated FPU class I worked with some of your staff and they give a you you all give us a good deal for the men at the homeless shelter hood um because my deal is I want them to okay you lived under the bridge now you got to get a job and so but when you get a job you gotta learn how to spend your money and so we taken the last part of their programs they go through FPU to learn how to spend their money and we appreciate everything Ramsey organization's done for us well we're glad I'm glad they were doing that we should be that's perfect that's as good as it gets or doing good work brother amen so in 39 years have y'all ever been debt-free maybe once we actually have another story that's long but don't we when we set for a home we had sold a home we got totally out of debt and sold a home made a huge amount of money in California and went and bought our dream home and then we refused to let it go and God had taken from I go we paid it off we do not believe in going like we moved to Missouri and had to spend 10 months paying that debt okay but we were out of debt at that point except for our home so for just a brief period of time that this time is the last time and that was scary I have to be it was hard I was it was like a crutch and I thought but I look at it now and I just realized what you say is true every time you swipe a card it is so much easier to spend than it is if you actually take the cash out of your bank and go put it in something it's like okay I don't know if I want to do you guys are big technology people I mean you're on the podcast and every dollar I mean your yeah you're on the technology bug reach you well done good job good job cry with every dead screen over here I can't thank you enough with the podcasts and everything because it really did keep us going every debt-free screen we just kept saying that's gonna be us someday that's gonna be us son where's your little trained it could okay we got a copy of Chris Hogan's book for you retire inspired that is the next chapter in your story you're not dying solutely gonna keep growing this wealth now I'm proud you're very well done Greg and Pamela Poplar Bluff Missouri $40,000 paid off in nine months making $80,000 great story count it down let's hear a debt free scream 3

[Applause] that's how it should be that's how it should be well done well done and oh man I love it when they come in here and they're 23 and they're debt-free and I love it when they come in here and they're 6 to being their debt free and all you people that are in between yeah this is fine jump this is fun if you hadn't heard it's called the Dave Ramsey show [Music] I have worked with thousands of women running successful businesses and I will tell you at any stage of business it can be scary it can feel vulnerable and risky to put yourself out there on the line but I'll tell you taking this step can be one of the best investments you make in yourself and in your business your dreams should be so big that if God's not in it you'll fail what we plant into our lives is what we get back if you really want it to happen start making the business plan then start getting radical everything we do they post an online world is impacting the physical we want to equip you with everything you need to start run or grow your business we're going to give you the tools and answers to help you win but also we're going to give you the inspiration and encouragement the excitement and the motivation and most importantly the community of women that are on the same journey that you are what a mom feels empowered her influence multiplies if you feel like you're not living up to what other people are doing or someone else's expectations of you that's okay this event is about so much more than business because as we know it's not just business it is personal and we want to give you everything you need to take your passion get the plan and win so join us in November in Nashville and be a part of a movement of women stepping into their god-given gifts to make money doing what they love

let's face it life can be crazy between work school kids church and everything else under the Sun it can be tough to find time for the things that matter most even breakfast once we're good grains comes in good grains is an innovative cereal company committed to delivering health and happiness to our communities and beyond how good grains makes tasty wholesome cereal that you can buy online and have shipped straight to you they offer one-time and subscription purchases and they support local schools looking for a better version of your favorite cereal try golden o's want something gluten free for the kids check out their loved grown line need a diabetic friendly cereal who may have got that to eat good grain cereal contains nothing artificial so you know what you're eating if you sign up for a subscription you can save time and money plus it all gifts back that's good grains sound good listeners of the Dave Ramsey show can receive a special free trial pack today just visit good grains comm slash Dave welcome to the best cereal on the planet I'm here with Greg and Pamela after their awesome debt free scream how did it feel amazing it was easier than I thought that's good that's what we like to hear painless now tell me what are you gonna do now that you're dead free stayed to have free that's the key there you told me something interesting what do you what are you doing with your schooling here I'm cash flow and my doctorate I'm getting a doctorate from Southern Seminary and I'm cash flowing the entire thing it's a it's amazing that we can do that anything you're excited about doing another debt-free see my grandkids so sweet you're so selfless I don't know that I'd be that selfless if I want to buy myself a toy or something you know what there's not a thing in the world I want we just came from the mall across the road before we came over here and I was like nothing in there they even tempted me I love that what great people Greg and Pamela debt-free Congrats again guys [Music] Suzanne is with us in Los Angeles hi Suzanne welcome to the Dave Ramsey show Thank You Dave thank you for taking my call we've used your snowball technique many times and we're very very appreciative of the work that you're doing to help us all thank you very much thank you how can I help well I'm hoping you can give me some financial advice for my golden years I'm going to turn 70 this year amazingly and I was widowed at a very young age so I raised the kids alone but I have to say this and maybe not everybody understands but I know a lot of your listeners well God has really helped me a lot been a husband to me and showed me a lot of things but I'm not very savvy at it but I do own my house outright Wow well I really was more God than me but it's worth 415 now nice home I have fifty three thousand in the bank I did have a little more but I have helped my children out we I know you don't agree with that always but my two kids and I pretty much did everything and and they're wonderful they're both married doing well and we pretty much trust each other on that so I have helped them out I do have another twenty thousand that's not so liquid but I could get if I needed to my problem really is income I have very little my pension is only 1400 take-home and because I came became a teacher at 52 the federal government says I have to have most of my Social Security removed so I only get 144 from that I do teach one day a week at college I teach music private music lessons for the the music majors and that helps out but that's kind of hit or miss in terms of how many students I can get eight semester my question to you is that I'm considering moving over closer to my son who his wife is expecting a baby soon and they would like me to be closer to family my daughter Liz and her family live out of state I'm using a lot of money traveling back and forth to that state and being grandma there and now I can help out my new one I don't know whether to this is my question where does your son live they live about two hours away from me and in over by Redlands my M Bernardino area okay it's about it's it's about the same distance away from Los Angeles but just as in different direction and it's expensive over there much more than my community and I don't know that I could afford the taxes if I bought another home there and so I don't know whether to sell my house put that $400 into investments and use that for rent money try to get another job over there my son and his wife also on 26 acres in a lovely area that can be developed into about five homes should I put a HELOC on to my house and help get that two started you don't know we be getting the real estate development business okay and I'm doing I'm sorry that's what they're planning on doing what he's planning on doing you don't need to you don't have enough money to do that that goes belly-up you got a problem you already got a problem but if that goes belly-up you got a real problem so here's your two options one is you buy a home it's going to be very tough to afford when you move over there as you said with your $27,000 income right and is that what you told me it was okay I can tell my my home and get that cash out no I understand that that's a problem that part what is your what is your income today fourteen hundred a month with the pension 144 over Social Security and then nine months out of the year I can about another hunt 900 okay so you are you're making about twenty five point six thousand dollars a year all right would you still be doing that if you move up there I don't know I find they had to find some place to teach okay all right all right so if you cash out of your home what you would do you'd sell it obviously you have two choices one is take that money and invest it if it made will just throw out round numbers if it made 10% that'd be 40,000 okay a year to live on in addition now in addition to the 27 if you're gonna move and you invest that money you'd have about you know sixty seven thousand a year that feels pretty good today the downside of that is if you live twenty-five years you're not gonna be able to afford to rent in that area because rents go up every year okay so the downside is while it works on a temporary basis it's not a real good long-term plan now you know for like a 25 year plan type thing but if the other the other thing you could do is as you said sell the house take the money go up there buy another house you have trouble paying the taxes with your income being as low as it is so neither one of these are wonderful options mathematically both of them have downside I'm probably investing the money out of the sale of your house and living on it and renting for now and then deciding and saying at five at the five-year mark at seventy-five I'm gonna reassess this and say alright god do you still want me to do be a renter do you still want me to live here if maybe he develops your child that you've helped so much develops that property puts a house on and gives it to you I don't know but that that'd be nice but somewhere you need to stabilize your housing cost long term and if you decide to rent for five years while you determine you know where you're gonna be you may end up moving in the other direction after five years I don't know but I do know that sixty seven thousand today as an example or sixty thousand dollars income today you can pay rent and make it today but on something modest but twenty five years from now that's still gonna be your income and I don't know if you'll be able paper I'm pretty sure you won't be able to afford rent by then so it's a good short-term plan it feels right for maybe the first five years after that you're gonna have to be thinking about what you're how you're gonna cover your housing and what your housing is gonna look like after five years so that that's what you're facing so I thank you for the call June is in Seattle Washington welcome to the Dave Ramsey show June hi do you think's for taking my call I am super nervous so I apologize no trouble yes I know how you I've listened to many years that I know how you've always given advice again partnerships but I've also heard you mentioned that difference and medical partnership oh yeah we currently own a Medical Group and there's only two partners and my husband I'm an employee of the company as well as my husband's partner's spouse we're at a point that there is potential growth for our business significant that we could be looking at this next year at what point do you bring in a partner in that situation or how would profit sharing and work on this at this time we only have 14 employees but it were looking at like I said at potential growth so what would you advise well the only reason you're bringing in another physician into the practice right it's all actually nurse investigates we're all bringing and that you would bring in another nursing assistant as a partner abbas ibly or you know well that's your model and again the only reason I'm okay with that as a partnership model or a law firm as a partnership model is because there's a track record of it working traditional small business partnerships don't work there's very few of them like 1% make it 10 years most of them don't make it and and it's because of it but in the medical community there has been a different structure and in the legal community a different structure where you know you're putting together your partnerships in a different methodology and the way it's managed the way you do the practice management is a differ then you would a traditional small business and so it's a normal thing and there's no real track record problem with it so I just don't hear many medical practices going broke because of partnership disputes you know like nine what is the magic is there like a magic equation where you go okay we have so many billable hours per year therefore we need to bring in more help there is an equation I don't know what it is the way I would find it is by studying other people in your field that have partnerships and ask them what their magic equation is when did they bring on other partners at what point revenue wise and what point staff wise and so forth you're looking for best practices from people in your industry and they can help you guide you on the actual numbers on that thanks for the call [Music]

[Music] listen up small business owners no one knows better than I do how important it is to keep track of your business expenses I remember those days if just one person doesn't pay it can throw your world into a tailspin and that's why I'm excited to tell you guys about fresh books fresh books is a cloud accounting software that makes billing painless it's ridiculously easy to use and it allows you to track time capture expenses and customize and create professional-looking invoices you can also get paid online right from your invoice meaning you get paid faster plus fresh books lives in the cloud so you can securely access it from your desktop phone or tablet wherever you are find out why over 10 million users just like you are already using fresh books start your 30-day free trial today at FreshBooks dot-com / Dave Ramsey and make sure to enter with the Dave Ramsey show in the how did you hear about us section [Music]

[Music] my name is Janine and I run blessings in the backpack here in Bonneville Alberta Canada I've been running this is the end of our third year and I brought this program to Bonneville because there was a need in our community for children who don't get enough to eat on weekend

[Music] in 2008 I decided that I didn't want to spend like that we had been spending and there was more to life than just wait until the paycheck ran out so I went to library and picked up Dave Ramsey's Total Money Makeover and it was a wake-up call and how you could live a different way and live more purposefully I've been married to my husband Kevin for almost 15 years and we have one daughter named Sophia who happens to be on the ASD spectrum she is an amazing kid who loves art and we love to spend our summers at Lac des Zil in Saskatchewan I did FPU in 2012 and I it just reiterated the whole purpose of living fully and what that looks like exactly it doesn't look like driving a BMW for me it means the family time and laughing your butt off to your that hurts and giving a lot of giving a giving is probably the biggest thing when you no longer owe anybody all of a sudden you have all this money and you can do whatever you want with it and it has changed our lives and we are living like no one else because of it [Music] so we did whatever we wanted there was a charity that you know we stood behind me we threw money at it a local church in town had just started a food pantry so I wrote him a check for $1000 so they could buy a fridge I love to walk in off the street and write a check for $2,500 to a local food bank but we bought a milk fridge for the milk program at our school for over three grand we bought guitars for the school at $2,000 it's just the best feeling in the world to give give of yourself when you start to think of yourself as more than just a spectator in life you can do whatever in it it's such a joyful feeling after my daughter was diagnosed with with autism you kind of fall into a really black place and you think that life is never gonna be better than it is right now I you stop hoping that things are gonna be this way for your child when they grow up and it can be really lonely when you are raising a special-needs child because other outside people don't understand your kid at all and you feel like you have to explain everything to them while I was feeling like that I think God gave me something else to hold on to and I think when you feel like you're sinking if you can give to somebody or start a new a program or something that you can it helps lift you up when you start helping others and you stop focusing so much on yourself it makes you see a bigger picture that no this life is what you make it when I was working in the schools and I would see kids come in deep breakfast I started wanting to somehow branch out and do something with that to help these kids on the weekend because I was so thankful to my daughter's elementary school for being so wonderful with her and I wanted to give back to kids the way that my daughter had been given to and that's how I came at starting blessings in a backpack [Music] [Applause] [Music] you could take this message to your kids you can start showing your kids literally how to live debt-free for their entire lives count it down do one you can start a new life for yourself and your kids can have a clean slate you want living off of a little really help with emergencies and having to pay things often whenever I get older I'll fall in his footsteps three two one let's tear your debt free scream three two one

[Applause] [Music] here in the control room with Kelly Daniel and this is the her two o'clock coffee break so she's pouring the creamer she's getting it going and I want to let you all know we we had a little misprint that I told you on air Kelly's debt-free scream is happening May 4th but it's now happening when May 2nd there you go and what was the reason for that Dave Dave's fault well it's okay you had to reschedule your own debt free scream that's so meta that's like Inception it's pretty cool I know I it was rough yeah luckily I know people you're seeing your name they're extremely very well we're really proud of you can't wait to see you and the family come in May 2nd be sure you're tuning in Kelley's debt free scream is gonna be off the chains more of the show coming up sacrifice determination you can be intentional about your character you've got to be on the same page today we're calling to let you know we are debt free house whatever you have done really really good and you're not gonna quit been a huge witness for us to be able to share that it was time to get serious intentionality people

this is your show America I knew it 22 what I know now our life would be better is the show that's changing the world don't just listen to the show you live it live from the headquarters of Ramsey solutions it's the Dave Ramsey show where Dad is dumb cash is king and the paid off Home Mortgage has taken the place of the BMW has the status symbol of choice I am Dave Ramsey your host thank you for joining us open phones this hour at triple-a eight two five five two two five so let me ask you something if you take something that's stupid and you add something that's stupid to it what do we call that stupid squared that'll work what go was stupid squared it's not really adding it's multiplying stupid by stupid that would be stupid squared right let's get the formula right here so here listen to this this will blow you away I can't breathe this is the dumbest thing okay if you thought that student this is an article if you thought that student loans were just for students to go to school then think again a recent survey has found that one out of five 21 percent of college students are using their student loan proceeds to invest in Bitcoin twenty one percent of college students are borrowing money on a student loan to invest in Bitcoin the Boston Globe did this study that ladies and gentlemen is stupid squared that is stupid dumb stupid we are going into debt on a student loan and investing it in Bitcoin what yeah I'm gonna take my student loan proceeds we're going to Vegas we're playing roulette we're gonna play black Jack and Vega switch back to actually blackjack you probably have a higher mathematical probability of winning them with Bitcoin this blows my mind so on so many levels this is wrong number one it's illegal yeah it's illegal when you sign a student loan document do you promise in the document to use the money for school why is that hard it's illegal to use your student loan money to buy a house or invest in Bitcoin number two it's immoral because you lied to get the student loan money I'm borrowing the money for school I lied I'm going to put it into Bitcoin and then number three it's ridiculously stupid you're going to lose the money and guess what the student loan debt is still gonna be there and then you're going to whore and cry about how unfair your little victim but life is unbelievable I mean if it was five percent of students are borrowing money on their student loan I'm investing in Bitcoin every one twenty one percent this is a substantial level of stupid five college students with student loan debt one of those idiots put the money in Bitcoin oh my god this is unbelievable I mean just which you know it's like a game show pick the idiot you know oh my gosh yeah you're an idiot absolutely ridiculous now if you want to invest in Bitcoin I think it's done ok Iying it's dumb I really do I mean because I if you want to put money in there though you because you philosophically believe and the freedom of currencies on the internet and all this BS and some of your in but basically it comes down to you're trying to get rich quick and you're investing in a highly speculative unproven financial product line currency cryptocurrency and there's a high probability you're gonna get bit in the but because of this you're most likely gonna lose all your money now well cryptocurrency eventually get its footing and eventually turn into a legitimate currency at some point yeah probably you do invest in it you're gonna lose your money I don't tell you to avoid vest in the iraqi Dyne are either you're gonna lose your money put money in this stuff it's unbelievable but let's just take stupid and set it over to one side then let's go borrow money on a student loan and let's just call that stupid but one out of five out of five people the borrowed money on a student loan invested the money into a Bitcoin in the middle of a student loan crisis if this isn't growing films for ending the student loan guarantee program I don't know what is the government that's you and me we the people are on the hook guaranteeing 1.3 trillion dollars in student loan debt and one in five of these idiots is putting their money in Bitcoin and you and I guaranteed the loan we're stupid Congress is stupid the Senate is stupid those were Givens but oh my gosh we elected these idiots and these idiots continue to vote this thing this guaranteed student loan program into existence so that people go and get a degree in a PhD in underwater basket-weaving this is unbelievable and they spend the balance of their money on Bitcoin this is ridiculous the absurdity of this is unfreaking believable if the student loan crisis was not enough to make you wake up and go we the people don't need to be guaranteeing a hundred and forty-five thousand dollar loan for an eighteen year old who's never had a job no banker in his right mind would make this loan but you and I make this loan every day it's called a student loan program and oh god if you took away the student loan program oh the little people will not be able to get ahead though people don't get ahead by student loan debt there's no data that shows that and by the way one in five of the little people are putting the money in Bitcoin you idiots good yes gracious this is unbelievable Adam Minsky Boston attorney specializing in all things student loan related says I would air to the side of it not being a kosher thing to do legally but regardless of that I don't think it's a wise thing to do financially well thank you Adam mark Cantor it's a student loan expert here's what you want to be known as bet his grandmother's proud if you invest the student loans in cryptocurrency and lose the money you will still owe the student loans Wow you make your living like I do with a firm grasp on the obvious son unbelievable yeah of course you still owe the money one in five let your Congressman know you need to stop guaranteeing student loans for cryptocurrency they'll put these idiots in jail how bad this is it's unbelievable it's illegal it's immoral and it's stupid squared this is the Dave Ramsey show [Music] in order to bring blessings in a backpack to Bonneville we had to guarantee that we can fund three full years at five thousand dollars a year for a total of fifteen thousand dollars they don't want people coming in starting it for two months and running out of money and then those kids relying on that food already and not getting it anymore we wouldn't have been able to do that when you had debt like $100 just given to a kid coming to sell Boy Scout tins of popcorn wasn't even wasn't even gonna be feasible now that we became debt-free it opened up this whole new world of giving and it's um it's changed absolutely everything in our lives I get to pack food for kids I don't even know but I feel really great knowing that there's twenty four kids that are being fed this weekend for a program we got to bring here it brings us so much joy and and just gratitude that we are able to bless others to carry on and be their best selves and and live a full life anyone that's ever doubted themselves and then push through it anyway will get what that feels like when you say thank you God I didn't listen to my inner self and I just went past the fear and just jumped because had I not done that we'd have more kids right now that are struggling I get to see these kids on Thursdays after school and they don't know who I am but they're carrying their bags of food that I had just patched for them and they're so excited for anyone that has enough to eat is probably nothing but for kids that don't know what they're gonna eat they know when they go home they have something [Music] we all have busy lives I get it but being busy doesn't mean you get a pass on maintaining one of the most expensive appliances in your home I'm talking about your heating and air system the simplest thing you can do to extend the life of your heating and air system is to replace your air filters regularly that's why I'm a huge fan of filter by comm filter by automatically sends any size replacement filters to your home or business when you need them you can schedule them to arrive every month or every three months it's up to you it's so convenient you never have to worry about finding the time to pick up air filters filter by comm is your one-stop filter shop for well priced air filters in any size you need plus they ship free within 24 hours you can buy one or buy a bunch and when you sign up for auto delivery you get an extra five percent off you literally set it and forget it get started today at filter by dot-com here in the lobby meeting some nice folks tell me your name mary duncan paul hassel and maggie very nice and so this is your brother and you got him hooked on dave and now he's seriously he's he's been hooked on Dave a long time and he got us hooked on Dave that's amazing which means Maggie's now hooked on Dave aren't you what's your favorite budgeting tool Maggie every dollar Wow I think we have a future millionaire right here and by the way folks it's the beginning of April make sure you've got those budgets ready to go for April thanks for being here today thanks [Music]

Tyler is with us in Detroit Peck Tyler welcome with the Dave Ramsey show hi Dave thanks so much for taking my call sure what's up so I'll be finishing my bachelor's degree in about a month and starting my PhD in the coming fall be moving out to Rochester New York Wow I'll be there for about four to five years maybe a little bit longer I'm debt-free I'll be making about 27,000 a year plus an additional thousand or so per month with a side business mm-hmm what I want to know is should I consider buying something or should I just focus on renting during that time if the market is vibrant in five years you should be able to make enough money to justify owning and it won't cost you basically if you can't if the property does not go up in value during that time or you can't offload it because the markets not vibrant and both of those would be indicators of market vibrancy right and so you know if you can offload it and it has gone up in value it's gonna be a good plan I do not know the Rochester market and you know you're gonna be making like 30 what thirty nine thousand dollars a year it sounds like something like that so you're not really making a ton but if you got and you're out of debt yeah and you're paying cash for your PhD yes how the PhD with my degree is actually fully funded by the program perfect okay cool what are you studying chemical and electrical engineering and I'll be doing Microsystems engineering at the school Wow wonderful good for you that's great okay cool that's fun yeah I mean if you bought wall condo or something and as long as there's a market to turn it back over then you'll come out ahead by having bought over the scope of your life if you live in places for a reasonable length of time five years and more each time owning real estate is a you know one of the key methods for building well versus having being subject to the regular increases in rent if you're a renter because that that's slowly steals all your money over time you know so and you don't end up with any ownership obviously as a result of it so yeah I probably would buy too if you want to get real technical since you're a math guy the way to look at the numbers is this you can talk to the local realtor get one of our endorsed local providers and you're looking for two pieces of data that will give you a good indication one is average days on the market they call it do M average days on the market and if the average days on the market is 270 days that means you got nine months to sell a house no thank you this is not a vibrant market if it's 27 days as markets white-hot right okay so we're looking at can we offload this thing and assuming that five years from now is as good as it is now or similar we don't know that can't predict national economic trends that that precisely but we're looking for the vibrancy of the the minor market there itself the the acronym micro portion of it this the second stat you're looking for is average annual increases in value for the past five years within a mile or two mile radius of where you're buying and so they can they can drop a point a data point in their software in the MLS usually and real tracks or whoever and pull up what your average annual increase is in values so if your average annual increase is one percent you're probably not going to come out because you're gonna go up five percent and your expenses are probably gonna be close to ten percent to resale you're gonna lose money right but if your average annual increase is 4 percent for five years now you've got a 20 percent increase and usually by the way these two data points will run that they will inform you the same way they won't inform you two different directions in other words if the market is really selling fast you're usually going to see appreciation rates that are good okay and if the markets flat and hard to sell you're usually going to see a pleased appreciation rates that are flat so they're both indicators of the vibrancy of the market and that's a technical way you can do the analysis and you know you'll get real close on whether you should buy or not but usually in most markets a five-year window it's going to be a good idea to own and you sounds like you're in a position to do that well done sir very well done Jennifer is in Syracuse New York hi Jennifer welcome to the Dave Ramsey show I was wondering I am on baby step three I have paid off all my debt except from a mortgage and I've recently inherited an inherited IRA I am wondering if I should continue to take the minimum annual statements out of the IRA or should I use the money to pay off my mortgage hmm how much is in the IRA the inherited IRA 137 thousands and how much is in your mortgage awesomeness okay and you have no other debt and what is your other nest egg not counting the inherited IRA so far I was contributing to a 401k between my husband we have a little over a hundred thousand okay yeah I pull out enough you're gonna be taxed at your tax rate with no penalties on an inherited IRA and so it's probably going to take close to a hundred thousands of niches 65 No maybe 90 something like that Danette you say king of taxes and then I pay my mortgage off today it wouldn't bump me up a tax bracket for taking that additional money out yeah might but so what okay not a big deal it's it's 65 it's one-time and it's you know you're done hundred percent debt-free you're not borrowing money ever again now your own baby step seven and you you max out all of your 401ks that you can put as much you can put in there you max out your Roth IRAs and you're going to become very wealthy how old are you guys and what's your household income about eighty-five thousand years awesome so if you sit there with no mortgage no payments of any kind making eighty five thousand dollars and you you know you'd be you're going to be saving twenty twenty five percent of your income at this point because you don't have a house payment right and you know you're gonna be very wealthy by the time you're 65 I'm talking ten me and so good growth stock mutual funds you max out your 401 k's as much as allowed you max out your roth iras as much as allowed and we suggest you sit down with a good smart Wester pro i'm not in the investment business but that's what I personally do and I spread my investing across four types of mutual funds growth growth and income aggressive growth and international and that's the best way to go for sure and you know just click smart Wester at Dave Ramsey comm and when you do that you put in your information and drop down a list of the smart Buster pros in your area and they'll help you and they can help you manipulate the remaining 30-something thousand dollars forty thousand dollars that's in that inherited IRA and what you're gonna be able to do with it as well very good job wonderful speaking of Rochester New York Alex is there already hey Alex how are you hey Dave think family sure what's up so I was just talkin that guy by moving to Rochester how vibrant is the real estate market there we were just discussing it I didn't know yeah I have been looking around I would say all the good houses go pretty quickly okay so the marketing on the hot yeah I'd say it's improving good okay how can I help today okay so I just got an insurance settlement after a long negotiation for almost two hundred thousand I'm fifty thousand and that student loan that I'm wondering where do I go from here okay what was the insurance settlement for I got hit by a car even Ross lost oh my gosh are you okay I'm okay now yeah okay so are you working again I'm I am working yeah what do you make I might make about thirty thousand a year okay is that what you made before yeah okay so you're kind of back to where you were as far as income goes yeah well I had to drop out of school this was that accident was three years ago so I had to drop out and I never got back okay are you gonna go back now I wasn't planning on it okay so what are you gonna do with your career

I was what do you do no planning to get into real estate or maybe get passive income somehow what do you know I work at it I work at Trader Joe's ok I don't want you to get passive income I want you get some active income how old are you 24 ok cool all right ok so what I want you to start dreaming again you got the crap knocked out of you you got hurt man and once you start dreaming again about what you're gonna be doing that's big-time when you're 44 and what are the steps in education to get there spend some of the money on that to make you better retool you tool you up to go win and in the meantime pay off the $50,000 in student loan debt but let's use the money to go to school and do something that you want to do to win that makes you excited again that's what you need to do you gave up on your dreams when you got hit by that car once you get back up and go dream again hold on I'm gonna give you a book called start as my gift [Music]

the day of a food bank drop which happens to be a Thursday morning every Thursday I do not know who any of the children are I do not know their families it could be a neighbor for all I know and that's what the beauty of blessings in a backpack is is that nobody knows who it is they are distributed by the staff so it's completely confidential the secretaries will when kids are out for recess they will go put the bags inside of their existing backpacks so that even other children don't even know but you get the occasional kid that's really excited about what their food bags are and what they get to eat so they swing them around for the whole public to know they don't even care they're just so happy

you have to have a start and an end point but the end point is really just the beginning you're gonna accomplish some amazing things that you didn't even think was gonna be possible because you were so weighed down by your debt the air smells different clothing feels different your outlook on life you're more positive you attract more positive things in your life when you no longer all anybody I want I want people to know how this feels and you can do this everyone can do this it doesn't matter what you make you do not have to make 200 thousand dollars a year to be debt-free it just starts with a plan that's it just a plan say yes to changing your life say yes to being different than everybody else say yes to driving an older car than your friends do say yes to living in a 40 year old house like we do just say yes to all of it and it all changes and then you stop caring what other people are doing because mate while that's fine for them you've got bigger plans that you want to see succeed and I'm just so glad that we jumped in we got debt-free our whole life is just completely changed we are living like no one else so that my daughter can go to any kind of school she wants to because we have the funding for it in cash if you can dream it up you can make it happen but when you have debt it takes choices away if you have debt you can't make the choices that you really really want in your heart and when you live debt-free it opens up a whole new can of worms for you so you better be ready for the ride because it's brilliant I mean this it's friggin awesome yeah [Music]

[Music] all big-time extraordinary things start from ordinary things and they start from changing the ordinary habits in your day-to-day life

[Music] in a heart filled with gratitude there is no room for discontentment kids develop their identity by getting clues from you about what you think about them feel about them and hope for them and they become who you think they are conflict becomes the price we pay for a deeper level of intimacy to think that you can have somebody work that hard and get to the end of their life and have nothing you can create your entire business around your life versus your life around your work today could be the day and literally your life changes be open to that receive it and we believe it'll happen when we start to try to control everything around us we get out of control of the only thing we're designed to have which is self-control I decided to take my life seriously what to live in my life is that serious your decisions from today forward will affect not only your life but your entire legacy [Music]

people all over the country are in need of a good dentist but don't want to break the bank at the same time great dentists are looking for new patients to help at one dental calm our task is to help connect the two with discount dental plans a discount dental plan is like a membership club where you pay a little each year and save a lot each time you use the plan this works because there are over eight million members dentists like this too because they get more patients and can keep their practice running to start your savings pick the dental plan that's best for you choose a dentist that's nearby and save fifteen to sixty percent on the dental work you need join us today at one dental comm there's no waiting and you can use the plan immediately everyone is accepted and there are no limits on use one dental com [Music] I'm back in the control with my friend James who just ate a delicious chocolate chip cookie from Arthur's place how was it it was amazing it was so fresh I could smell it as he bit into it those chocolate chips just melting where they kind of melted a little bit oh yeah yeah it was great well we're deep an hour to here and I notice on your Twitter feed you've been listening to a lot of cool music what's your favourite leaf weight well I got to go in a second I'm loving the new Kasey Musgraves album Kacey Musgraves I'm not a country fan but it's like it's kind of alternative country it's really okay check it out folks [Music] James is with us in Memphis welcome to the Dave Ramsey show James hey how you doing Dave better than I deserve man what's up I've been kind of stupid I think me too this is what happened I had a I bought a new car and I owe 33,000 on it I said this is too much I said this is too much debt and what I did was I bought a turned around with the credit union and I bought Oh 8 Lexus and it was 10 like 10 9 9 after got through it was 12 I did it with the courage in you where I finance that I could my financier this one thing when I cooked my debt and have more than kind of more than half because I don't know at 33,000 anymore we sold that car yeah I sold that car okay so you got an old Lexus gotcha all right and I bought it from this used car dealer and then when I went to I said let me go to Lexus and get in the specs and I should have done that before I bought the car and they came back and the car ran great but they came back from Lexington said it was like $7,000 worth of repairs that would need to be done on this car what's wrong with it I got the printout now they say that it was like our rack and pinion miles was a cargo it was 90 91 - okay and it's what I know wait which marble Lexus es350 okay yeah and well we've owned like sisters for years and you know we use the dealer to work on but they're very expensive the is to work on Alexis and you know that they have a maintenance program at Alexis dealership like a Mercedes wood or a BMW Atwood where they tighten every screw they do every piece of fluid change and it's not the kind of service that you would do on an old hundred thousand mile car okay this kind of service you do on the car that is fairly new and you've got a lot of money and you're just maintaining a very expensive car but I would not have taken that car that you're driving to a Lexus dealer I would take that to an independent import somebody works on the import that work on a foreign car working on Alexis and and there's plenty of good you know independent mechanics in the area and just you know what you want to do is just maintain the car and just to keep it running but you do not want to dial that car all the way up $7,000 worth of miscellaneous crap ya know which is know what they're doing you I don't think you got burned I think you know you just got the the serious overkill of an expensive brand dealer shop and you know I've got a Mercedes I take it in the Mercedes it's expensive to work on it but the car the Mercedes were driving is an expensive car it's almost brand new so you know it's a different thing you don't do that with a $10,000 car you do that with a $50,000 car a $40,000 car a $70,000 car that kind of a thing and yeah you might spend four or five thousand bucks on it on the maintenance run but on a you know on 10,000 hour car you take that to your local guy and you know I I don't think you did something stupid I mean it's possible that car is a complete piece of crap but you bought it's possible I doubt it they're pretty good cars they got more than a thousand miles life in them and I can't believe that cars completely worn out after a hundred thousand miles it's just it would be very unusual that's a good car you bought the brand and the line a car I've owned that car it's just you know it's you should be fine but I think you just took it to the wrong place to get looked at I would find an independent in the area if there was like a Christian Brothers or somebody like that in the area that's what I would do all right Chrissy is with us in Chicago hi Chrissy welcome to Dave Ramsey show hi Dave thank you what's up my husband and I are in baby steps 3b and we are actively looking for a place to buy we're going back and forth on what we can afford and what we can't afford and with the monthly payment being a quarter of our take-home pay living in Chicago we're looking at a lot of condos and we're finding that these HOA fees are coming out to be about a quarter of what our monthly payment would be so should we include the HOA on top of the piti or not you can go either way you can split it you could go on top or not here's the bottom line the whole idea of the 25% of your income going to your house housing it is not counting utilities okay it's just don't be house poor you know and so yeah whether you live in Chicago which is an expensive market or LA or Manhattan right you don't get a pass on math and so if you spend you know 50% of your take-home pay including this HOA on the thing you're gonna be broke the house is not gonna be a blessing it's gonna be a curse you're gonna hate the thing cuz you're gonna be what we call house poor right so the whole idea is don't spend all your money on the house you know that's what it comes down to so we can split hairs on the technical part but I mean 25% is a conservative number that keeps margin in your budget and so if you include the HOA in that you're gonna have a happy life but you're also gonna be buying a lot less condo in Chicago you know so I get if you so you know if you're gonna cheat up a little and you say okay we're gonna count part of the HOA so we're gonna cheat up to 30% you know there's no there's no like salvation rule here you're not going to hell if you do that you know but it's just the point being mathematically you've still got to have room in your budget and if you get much over 30% including that HOA you're not gonna have room in the budget you're just not I mean you're gonna you're gonna start to be pinched on housing and you're not gonna be able to invest and you're not gonna be able to say for your kids college and you're not gonna be able set up and pay cash for the next car and you're gonna wander back into consumer debt because the house is pinched you that's the whole idea so based on that concept you guys make your own math adjustment or whatever you want it to be but you know including HOA principal interest taxes insurance and HOA that's what I including the 25% but including all of that if you want to cheat up a little bit cheat up a little bit cheat down a little bit I don't care but I still want you to try to get the thing paid off early I still want you to be putting 15% of your income into retirement for you for you I want you to retire wealthy and not in spite of the house but because of the house that you choose the housing that you choose that's the whole concept so hey thanks for the call open phones at triple-a 8 to 5 5 2 to 5 you jump in we'll talk about your life your money Jeff is with us in Michigan hey Jeff how are you done good thanks for taking the call sure a couple couple of retirement questions actually retired last year and we haven't had to draw anything out of our eye our Asia okay so what I'm looking at is the best way to either just take the dividends capital gains has a met for cash flow or is it better to sell shares as mutual funds to supplement our income if they're inside the IRA it doesn't matter they're all treated exactly the same it's all gonna be ordinary income as you pull it out if it's a traditional IRA now because they're gonna keep flowing either way I mean I'm probably just gonna you know I would just put in an order with your broker to start pulling off a certain amount are you 70 and a half are you just hitting or you just wanting some cash flow okay cool at 70 and a half you know you have the mandatory withdrawals that begin on a traditional but in the meantime you can just tell your broker whoever's handling your advisor whoever's handling your mutual funds that you want a certain amount to come out and that you know let that crank down for you and they can pull it they're probably gonna just the me dividends are natural income I just pull those that's easy and other than that you're just pulling off appreciation you're pulling off shares is what you're doing because it's all been plowed back into shares up to this point this is the Dave Ramsey show


we live in a country where people are turning their ideas into money-making businesses every day each one of us have ideas passions skills and talents hey it's Anthony o Neill and I have helped thousands of teens across the nation make wise decisions with their money relationships and life choices did you know that 75% of parents want their kids to learn entrepreneur skills but don't have the time and resources to teach them with the teen entrepreneur toolbox you can finally give your team the tools they need to succeed I knew that I liked to make art I know I like to make jewelry and I knew I liked to make money so I kind of put it all together and panca but I figured that there was a big need in my neighborhood a pet care and I thought why not me this toolbox would teach entrepreneur skills like self-confidence responsibility hard work and goal-setting get the team entrepreneur toolbox today hey guys you know what time it is it is time for a like spike go ahead and hit that like button why because every time you hit like it increases my chances of remaining employed and I sure do love my job so I'm gonna go ahead and use Dave's calculator here to calculate how many likes we need to get to our number and I just now realize that I didn't have no clue how to use this calculator because it's from I'm assuming 1987 which is before Iowa's born so just hit that like button and let's hope we get there okay [Music] so I purchased the timeshare back in 1997 because I was looking for something to do with my kids over the course of 15 or so years that we used it we went a lot of really fun places irreplaceable memories no doubt by 2012 I had a third child who was then nine years old but my older two had graduated from high school times did change and we wanted the freedom of being able to enjoy vacations wherever we can go when we can go then I did see some advertising for timeshare exit team I was absolutely elated because I had had so much regret and remorse over the years for having gotten into the timeshare and I was extremely impressed with how professional they were and how straightened to the point they were in getting me out of my timeshare time changes everything if your timeshare no longer fits your life call the team that can talk to you about options for your timeshare call timeshare exit team today or go to timeshare exit team comm [Applause] I'm gonna up here exclusively on our video channel conversation with Ramsey personality Ken Coleman you may know him as the author of one question host of the Ken Coleman show host of the entre leadership podcast I'll be chatting with him and here's the deal you can submit a question for him maybe you're struggling with your career remember you're 18 you don't even know what you want to do maybe you're 50 and you've had the same job for 20 years and you hate it tag me in the YouTube chat at George Camel with your question for Ken and maybe he'll answer it on air in our next segment [Music]

here's what's interesting when I say to people you need to be investing for retirement I was talking to a an executive in the insurance world yesterday one of the top companies in the world literally and I was with the president of the company the CEO of the company and two of their top executives and they we were talking about the retirement crisis in America today and when I say you need to be investing for retirement you know what I hear almost every time oh I'm young I've got plenty of time or I hear it's too late I've missed my chance to build wealth well I got to tell you both of those are wrong dead wrong time is a big deal when it comes to investing you ever seen the compound interest chart huh man I mean that been an Arthur example we've got in Financial Peace University it's a big deal time is a big deal if you're young time is on your side you have no excuse for not becoming a millionaire no excuse except just your pride I'm got plenty of time I'm gonna live my life you're just a moron you're a child children do what feels good adults devise a plan and follow it live like no one else so later you can live and give like no one else don't put it off you need to sit down with someone and get your baby step four going and you can even start planning your baby step before before you get there fifteen percent of your income going into retirement put that in a financial calculator at 24 years old put that in a financial calculator at 54 years old and you will see that you are going to retire with dignity you need to be able to do this stuff okay you need to go to Chris Hogan 360 dot-com and jump on that our IQ learn your retire inspired quotient your retirement IQ and you need to go to smart faster dot-com or just jump on Dave Ramsey calm click smart Wester either one and then you fill in the stuff and you know list of the smart Wester pros in your area will drop down and boom you can sit down with one of them and the heart of a teacher again we're not the investment business but I'm in the business of getting your butt moving on money and this is not just about getting out of debt it's getting out of that so that you retire with dignity so that you change your family tree so that you're able to give without rages generosity to needs that you see in the community and around the world changes everything you're not young and got plenty of time and you're not too old shut up don't want hear your whining go do it be a person of destiny make the decision to go win you can do that you really can do it really can't hey guys give us a second we just exceeded 700 team members right now here at Ramsey solutions and we're not slowing down we have a growing line of digital products and services as a matter of fact when I get off there today I'm going into a two hour meeting on some stuff we're working on on some digital stuff right now I am so excited there's so much and we are on the hunt for several key digital marketing roles now we're hiring about 20 people a month in all kinds of different roles so just check that at Dave Ramsey comm but they're telling me right now we need a director of marketing for our endorse local provider team we need a couple of email marketing experts and a couple of social media guys and gals so check out the jobs that are available whether it's programming the other Ruby on Rails people yeah we need you yeah find out all the jobs are available at Dave Ramsey com click Dave's hiring tab on the right hand side of the homepage you know we're doing work that matters here we went best place to work live in Nashville here 10 times why cuz were the best place to work so spread the word Dave's hiring Dave Ramsey dot-com Michaela is with us in Athens Georgia hi Mackay how are you better than I deserve what's up well I'm about to graduate at high school going into college first year and I have been running a business with my dad for a while now and it's kind of starting to take off and it's looking pretty good for the next few years and I'm trying to see how exactly I should go about saving and student loans and all that you know college stuff that I need to worry about okay you're going to college next year yeah and you don't know how you're gonna pay for it well no III would know how I'm gonna pay for it like it's I'm doing my dad's business and it's it's taking off very recently that it's looking good for the next few years like we should have some money coming in and I guess I'm trying to figure out the best way to save and should I get should I pay for it outright oh definitely definitely yeah you're not gonna bum I wouldn't teach you to borrowed money on student loans ever no stay-at-home dad so how much money is this business making um well right now I've just been kind of stagnant sneaking in between the ballpark of 50 and 100 thousands but uh it's it's projecting to make you know who knows a basically a very good amount of because of some things that have been going on in Russia to have a solid incomes coming out of college like a very very good income coming out of car what about while you're in college well in college as well it's just growing and growing okay and so it's is it making enough to pay for college your part I'd it should be yeah but by the time I'm well that's my question is should I should I pay it off when I'm when I'm done with college and do FAFSA and all that right now no because I don't have the money right now oh you don't have the money to go to college not right made fifty or a hundred thousand dollars and you don't have the money to go to college in the fall wait is my my dad business right now I just kind of started working with them oh I thought you started the business with him okay so what is your part what are you getting paid right now right now how much money of your making right now and me like a thousand a month okay all right so you're making a thousand a month between now and September and then you're going to school and you're going to keep making that Commission while you're in school yes sir yeah well I'm going to help with school at all I think they're gonna have a little bit but the majority if they want me to pay for right and where are you going to school a community college and then transferring over to University of Georgia good good plan okay this Community College free in Georgia it's not free but the there's a scholarship that pays for really about 80 percent of it yeah it's really it's real cute all right so if you have a thousand dollars a month coming in between now and September and the HOPE scholarship and know what it's called yeah the HOPE scholarship is gonna pay almost all of Community College why can you not pay cash for Community College for the first two years making a thousand dollars a month and with the HOPE scholarship you can okay yeah so that's what you've got a day we just you and I were just working out your college budget just now that's what we were doing you need to look at what it's going to cost you and what your sources are to pay for it we got the HOPE scholarship to help you pay for it you're going to Community College that's a very wise move in your situation and and you're working your butt off good job and your commissions are gonna continue to go up hopefully and then you also so the second piece of the information is we you're going to stay at home while you go to Community College so ain't got housing that's good then the second jump is we're gonna have to have housing cuz you're going to Georgia no you're a live in Athens you live in Athens right yes Georgia okay good yeah so you can live at home and go to Georgia and so now you but you got a bump up at new ish and it's gonna be more expensive than Community College so you know the next thing is we're gonna start saving and working towards that so squeeze every dollar out of your life you can and pile it up in a savings account and pay cash for Community College but try to leave a bunch left over to get ready for the jump up to Georgia and then you're gonna be able to pay for that too so I think you can make it but you're just gonna have to plan your cash out from your source of cash that's coming in which is you're working and of course living at home and of course but this is a great plan you're gonna you should be able to go through college without any trouble debt-free it's gonna be hard work but I mean you can do it mathematically what you're describing is is like the world's best plan I love it well done but but just plan your cash all the way out project it all the way out through four years what do you need for tuition what do you need for books and I've got the HOPE scholarship and what my what's my income got to be and then I can't be spinning at all I got to be saving it to go to college that's what you're doing that's the plan well done very well done that puts this hour that I've Ramsey show in the books thanks to James child's our producer Blake Thompson's our senior executive producer and of course Kelly Daniel our Associate Producer and phone screen er I am Dave Ramsey your host we'll be back [Music] listen up small business owners no one knows better than I do how important it is to keep track of your business expenses I remember those days if just one person doesn't pay it can throw your world into a tailspin and that's why I'm excited to tell you guys about fresh books fresh books is a cloud accounting software that makes billing painless it's ridiculously easy to use and it allows you to track time capture expenses and customize and create professional-looking invoices you can also get paid online right from your invoice meaning you get paid faster plus fresh books lives in the cloud so you can securely access it from your desktop phone or tablet wherever you are find out why over 10 million users just like you are already using fresh books start your 30-day free trial today at FreshBooks dot-com / Dave Ramsey and make sure to enter the Dave Ramsey show in the how did you hear about us section [Music] I think the average millionaire becomes rich by starting their own small business a lot of people you know are sort of born into it some of them work really hard and something steal I would say it's family money it's old money I think it's a combination of working hard being responsible with your money smarts being organized and there's no way to do it without hard work and on some of the major causes of poverty the cycle of poverty doesn't help which really is because the root cause lack of education yeah anybody's just going there's this cycle there's not a lot of money being put out on the bottom level I think or money management I say big problems is just getting born into it and people thinking that there's no way out of it I definitely thing is possible to get out of poverty one way to do that is why I said earlier to network and just try make sure you're getting in touch with the right people it just depends on you it depends on a lot of factors a lot to be there God work could be there but not only hard work to get you to be rich it takes them consciously making that decision opens receiving help I mean all it really takes is willpower because we all have the same opportunity hey folks I'm Ken Coleman you might know me from the Dave Ramsey show or the entree leadership podcast let me ask you a question do you dread going into work on Mondays you're not alone a recent Gallup poll found that nearly 70% of Americans hate their jobs life is way too short to walk through the week like a zombie we all want to live a life of meaning and I'm here to help I'm really excited to announce my new radio show and podcast the Ken Coleman show [Music] over the years I've had the privilege of interviewing leading business experts athletes entertainers and politicians now I'm here to share their success stories and struggles with you as we explore how to find your sweet spot take a leap of faith and maximize your potential if you're looking to go from being stuck in a job you hate floating through the week with no sense of purpose to working in your strengths and unlocking your full potential I invite you to join us on the Ken Coleman show so subscribe tune in and share with your friends and family

hanging out with my friend and Ramsey personality Ken Coleman he's here to answer your questions that you submitted in our YouTube chat so Ken let's get right to it how you doing today I'm doing good well let's get to it melody w asks my husband resigned from where we both work and now does freelance work I continue to work full-time I don't like my job and I want to change careers should I wait or take a risk well I would say the only waiting that you need to think about is how long is it gonna take me to identify another role in another company that I can go to and then if you identify that go but I I sense that that the question is do I take the risk and just go ahead and jump and then find something now I don't like that it's not that bad it can't be that bad and even if it is really really bad and it's sucking the life out of because I talk to people every day on the show where they feel that yeah hang in there be a big girl bite your lip and stay at that role until you have something else and then it's not a jump it's a step very big I love that and this one comes in from a toe to top hat how do you determine if it's time to leave a company huge question a lot a lot of people asking that same question yeah you know I'm gonna borrow a phrase from Dave that he says to us all the time and staff Minnie he challenges us if your heart has left the building take your body with it so I would say off of that great wisdom that's really true if there's zero passion for the role and there's zero passion for the company it's time do yourself and that company a favor and leave I love that well hey we got a lot of questions from you all on YouTube and here's the good news we can't get to them all now but you could be featured on the Ken Coleman show it's super easy you can call this number right here eight four four seven four seven two five seven seven leave the team of voicemails producer we'll get back to you or you can email him at ask at Ken Coleman show com also a great way to connect there and that will give you a chance to be featured on the show I'm loving the calls you've been getting can a lot of people trying to get help and they're being helped so much fun we had an 18 year old call in today and she said Ken I got my purpose sentence now I just need some help on what are the next steps and when you got an 18 year old they listened for seven months that wants to be that intentional about her career this is this is so much fun we're having the time of our lives and here's the deal it's safe I'm not make fun of you we're gonna ask lots of questions and give you clarity so you have the confidence to move forward and do the work that you were designed to do well I'm excited to be with you at smart conference this weekend Abbas in your hometown it's gonna show me around I think you know more about Boston's history than I do I actually do yeah he helped me a little bit with some tea party information so we're gonna have a lot of fun there you're gonna be helping people discover the role they were born to play help map out a plan to get there can't wait can't always a pleasure to be with you thanks for hanging out today you look great and gentlemen thank you I appreciate that ken what a nice guy sacrifice determination you can be intentional about your character you've gotta be on the same page today we're calling to let you know we're debt-free house and everything you have done really really good and you're not gonna quit than a huge witness for us to be able to share that it was time to get serious intentionality people

it's a success this is your show America I know at 22 what I know now our lives would be better that's changing the world now you don't just listen to the show you live it

[Music] live from the headquarters of Ramsey solutions it's the Dave Ramsey show work that is dumb cash is king and the paid off Home Mortgage has taken the place of the BMW as the status symbol of choice I'm Dave Ramsey your host thank you for joining us open phones at triple-a eight two five five two two five that's triple eight eight two five five two two five starting off this hour is going to be Renata in Phoenix Arizona welcome to the Dave Ramsey show Renata hi Dave thanks for taking faith also thank you for your ministry it's such a blessing thank you how can I help well I'm 62 recently divorced and I wanted to ask for your advice and closing kind of long-term health care for a long-term care okay I would buy long-term care insurance when you're 60 okay not until okay does it matter if you know my I'm pretty funded as far as my retirement goes doesn't matter whether is there an asset level that makes it difference to whether you could sell fund or you should have the insurance well the the average stay in a nursing home is two point four years okay okay the number of people that stay over three years is only one fourth okay seventy-five percent of time you just don't stay over three years and only seventy percent ever go and so when you start multiplying those numbers out it starts to get down to almost nothing that is going to be longer than three years so if you figure fifty thousand a year for nursing home or in-home care that's 150 grand out of pocket and you're single is what you're telling me and so you know if you got two million dollars you can burn 150 and not think about it if you got a million you could burn 150 and be okay if you got 200 you burn 150 you probably got a problem okay so once your asset loved it what's my life asset level my retirements right about 1 million right now I have a couple a few hundred thousand liquid as well awesome if you are single and have no dependents which is what I think I'm hearing well I do I do have three well I three children one is I'm independent she's in college right now but I'm I'm funded for that yeah but that's not money I'm talking about when you're sixty yeah correct we're not even going to worry about it until sixty but at age sixty do we buy long-term care insurance or do we self fund through that you got a million and a half dollars easy by then probably two million yeah and so what's your income about fifty thousand I have a couple small businesses I run so I don't anticipate having a lot of retirement already from your income or from the divorce it was mainly from some of mine have no I saved a lot through the years 401ks and IRAs well done very well done thanks I'm talking to your old single lady millionaire yeah how much did you in how much of it did you inherit zero there you go alright that's the norm that's what we found most of the time yeah I literally left college and had my full on maxed out in the moment I got my first paycheck and I found that with huge I love it though there you go there's the formula oh well done you could self insure through this when you understand the probabilities so here's the here's your probability 70% need long-term health care help okay in-home care or a nursing home so only you know only two-thirds to start with is what we're talking about then out of the 70 percent that do only 24 percent of them need it longer than three years and the average health care the average long-term care nursing I'm about 50 50 60 grand right now depending you can spend a lot more you can spend a lot less but that's roughly you know a good rule of thumb to use and so you know we're talking about you know one fourth of two thirds are more than three years that's what that's that's one you can self-insure through if you said unto me and and this money if it's invested should grow to that by then in another years or more that's that's what I'm thinking too okay and I just want to get your thoughts on it I'm a big proponent of long-term care insurance but you're in a position to self-insure if you choose to awesome great well thank you very much thank you for the call Rachel's in Phoenix as well hi Rachel welcome to the Dave Ramsey show hi mr. Ramsey thank you so much for taking my call it's a real pleasure honor to talk to you how can I help so we have started the baby steps this year you spent a lot of time at our dinner table I don't know if you know that in front of the guest plate right so I'm staying there at the time so we bought a car late last year we had two older cars and we were trying to downsize to one vehicle in a smaller payment and we thought we made the right decision and it turns out we did it okay um so we are so I did my research after I started reading your book trying to figure out how to get out from under this car it's about eighteen thousand dollars underwater and I can't find a credit union or anybody who's willing to refinance that amount with us that's not a shock so you must say you rolled a ton of underwater from the other two cars into this deal yes yeah it must have been a ridiculous interest rate that's what the whole thing was we had one of my husband's car was of a thirteen percent interest rate and mine was at a six percent interest rate so when we went to the dealership you said what these cars are old they're their bottom-of-the-barrel value we can get you into a new call we can roll in the negative equity at 2.75 percent with a cosigner which is what we did okay so you're a 2.7 yes the story so far what's your household income so take-homes we bring home about five thousand dollars a month okay and you owe total how much on this car forty-one thousand twenty-five dollars and seventy six cents as of this month good lowered and it's really honestly mr. Ramsay I called because it's real discouraging we're trying to get going and it feels like we're almost done before we before we before we even get going so how much was your taxes and how much was your tax refund well that's all gone we put that into other things but it was about 4500 change your w-4 so that you take home forty five hundred divided by 12 or about another four hundred dollars a month because you got too much coming out of your check and how much are you putting into your 401 K s so as of this month we stopped our 401 K and if you stopped all gimmick insurance everything but health insurance we have so all of our insurances are through our employers so we have like our health insurance our life insurance and our kids life insurance your kid's life insurance yes we we had a friend lose a baby this year a small baby and we decided that we would take out to $10,000 policies they're like three bucks a month for our children just in case okay all right okay you guys need to tighten your budget down now change your W fours make sure you've stopped all your 401 k's which is what you're talking about get a home with as much money as you can increase your income as much as you can sell everything in sight put so much stuff on Craigslist the kids are hiding sell every thing in sight and start paying this car down there's no way out of this except to pay it down if it's a big $18,000 loan or if it's a $40,000 loan right doesn't matter it's a 2.7 pay it down hard and fast hard and fast you can do it [Music]

what what America has done this for years they're all about hiring talent so once those bright so-and-so's Got Talent it never mind the fact that they have no integrity never mind the fact that they're scummy never mind the fact that they cheat lies steel never mind that they're talented and that's bogus and besides that do they fit with you you're gonna spend time with them with you are they connected with you it's five people you're gonna see them a lot now rachel says well I don't see her a lot that's true she's in the top floor I'm in the bottom floor and that kind of a thing but but but you know we're a little bit bigger now but when you start especially especially the ones that are gonna work real closely with you ask yourself the question it is a valid question let me give you permission to ask the question do you like them do I like you ask yourself that question when you're sitting there yeah they're talented but there's something kind of weird don't do that that bells ringing answer the bell okay that's a no that's what that is [Music] [Applause] are you struggling to stay on budget get out of debt or even find new ways to save money well if that's you keep watching this is the Rachel Cruz show [Music] [Applause] the Rachel Cruz show is here and we're gonna show you how to make saving money fun our culture has us trying to keep up with something just out of reach spending money we don't have to impress people we don't even like that's not real living I'm here to help you make progress with your money and your life so your money journey you guys would you say like right now in the present you guys are in a pretty good spot yes has it always been like this no we're gonna talk about tough issues celebrate the victories and share plenty of tips on shopping budgeting home decorating for Less organization Guerra that Caravaca relaxes you start to feel the organization happens happen meals on a budget guarantee marriage fashion and more if it's a part of your life it's a part of our show [Music]

we all have smartphones isn't it time for a Smart Plan pure Jacque USA offers simply smarter Wireless that covers 99% of Americans stop overpaying for wireless unlimited plans start as low as $20 per month and include the same great coverage you never pay for any data over cheese and pure talk USA never turns off your data no contracts no hidden fees no surprises if you're thinking our absurdly low cost means less coverage think again if your doc USA operates on the largest gsm network in the u.s. to ensure you're connected virtually anytime anywhere and our 4G LTE network provides the fastest internet speeds like more expensive carriers you can keep your same phone and your same phone number add multiple lines to save 20% off your total bill go to pure talk us and do something smart today unlimited talk and text plans start at $20 per month no contracts no activation fees no reasons not to try come to pure Talk see how much you can save enter this promo code to receive 50% off your first month the crowd has finally died down here in Martha's place I'm hanging out with Melissa and I have to ask a lot of people come in here and they say are you Martha what is your response I said no I'm not Martha I'm Melissa Wilson but Martha was the original person that ran Martha's place and then she retired and after she retired Dorothy took her place she retired in November and I took her place there you go behind the scenes folks [Music] thousands of women are realizing their dreams by using their god-given gifts to start their own businesses and operate their own businesses a lot of ladies in the marketplace or that aren't in the marketplace are more educated than their man in some cases more business driven than their men and that's not unusual at all so or maybe they're single ladies either one and Christy Wright has been coaching women on how to make money doing what they love for years and so she's the creator our Ramzi personality is the creator of the business boutique movement number one best-selling book business boutique equipping women to make money doing what they love and now they've created the business boutique Academy our online coaching group that will equip you to start and to run your business if you're already running one so join the business Boutique Academy today turn your passions in the money business boutique dot-com business boutique dot-com Peggy is in Charlotte North Carolina welcome to the Dave Ramsey show Peggy better than I deserve how are you alright so my question is we have a vehicle that is worth about $1,500 and that's what it would take to get it back and secured running conditions with new tires everything else we currently have about twenty thousand dollars and liquid finances and ten thousand dollars in a mutual fund my question is do we get a new car do we and not new of course those views or do we fix the one we have okay and do you have any debt no okay so why are you driving a hoopty if you have thirty thousand bucks

what's your household income so I just had a baby that's your house alone and 500 a month 7500 a month 2500 2500 a month okay all right and so that's because you're off right now and your husband makes 30 grand correct okay what do you make when you're working well anything like part-time so it's going to change so I'll add maybe another okay so if we're dealing with a household income when you're working part-time with the baby and you're making a $42,000 our only rule of thumb is number one no dad on a car number two you should not own vehicles that total more than half your annual income because they go down in value rapidly no I don't want to have too much of our financial world tied up and stuff going the wrong way and cars go the wrong way I love them but they go the wrong way so but you've done a good job of saving you got a good savings account so we need to allocate part of your savings that you've done to call it label at an emergency fund of three to six months of expenses what is the other car you have worth roughly maybe thirty five hundred thirty five hundred dollars okay all right and is the fifteen hundred dollar car yours or his for the daily driver okay yes okay all right well you guys can you know under the guidelines we're talking about you could have a total of you know 15 20 thousand dollars worth of cars and so you're driving a couple of pieces of junk right now and so I'm probably moving you both up in car a little bit both up to about a seven thousand dollar car each and that'll be about fifteen thousand dollars tied up in cars it's not a lot they're both paid for and you've still got your emergency fund in place and you've avoided debt completely but the cars they reach a point when you get down below that $3,000 type car that you're just getting by on that car and you never would want to spend $1,500 on a $1,500 car because you just threw $1,500 down I'll come I mean you just flushed it right and so that does not make sense so that car is gone even if you turn around bought another $2,000 car I'd rather just buy 2,000 other car that runs and it's been $59 on a 1500 ollar car so just sell that car for Salvage I would go buy about a $7,000 car and pay cash for it if I were in your shoes that's what I would do because I want you to move up into reasonable cars that the total of them is less than half your annual income and you paid cash for them Curtis is in Bakersfield California hi Curtis how are you good day thank you for taking my call sure what's up well my wife and I are looking at producing a new home and we would like to rent out our current home and we are debating whether or not to refinance the current home to justing increase the cash flow when we rent it out I wanted to get your thoughts on that I love real estate I would not have rental property with debt on it understood and the debt is also get added if you're going further in debt on the home you're purchasing because you're holding this house rather than rolling that equity into your next house okay so I'm selling it and by I'm using it to buy my next house let's get your home paid for once it's paid for let's start saving up like crazy pay cash for your first rental that one is hard Curtis the second one is the second rental that you buy is but I'm talking you got no house payment at this point now you only paid for rental the second one that comes pretty quick the third one comes even faster because these rentals when you have no cat no debt on them and all they cash flow like a bandit I mean it's amazing they're wonderful and and that's how I started the second time that I started buying real estate I pay cash for everything and man it is a total joy to own real estate that doesn't have any debt on it but it take that first one it's hard because you can't get your house paid off and when the house is paid off you got you know you got a good cash flow now without a house payment and boom then you go save up pay cash for that first rental that one's hard second one's easier third one's even easier its fourth one's even easier the fifth one is even easier and it'll turn over a decade or two decades into an amazing amount of wealth if you'll go that way but when you leverage rentals they don't really cashflow much because by the time you have vacancy and credit problems and people that don't pay and evictions and repairs and everything else it just you don't have a lot of wiggle room here you're not making much on the thing the only thing you're making is a someday you sell it and it's going up in value that's really all you're making out of leverage there's a lot of risk I just wouldn't do it Martha is with us in San Antonio hey Martha how are you hi Dave thank you for taking my call sure how can I help so so my question is about whether or not I'm saving enough for retirement I have four hundred and fifty thousand dollars in a 401k and I have about two hundred thousand dollars in an annuity which was a stupid thing for me to do because I'm only 43 years old but I would like to retire when I am 55 and at that point my home will be paid off I don't have any other debt so I just want to know if if that's enough or if I should be investing start old or I mean it's not I'm 43 so you got you got 12 years yeah okay is the 450 in retirement invested in mutual funds yeah good okay is the annuity a variable annuity or a fixed annuity okay get with your financial advisor and roll it to a variable annuity where you can put the money into mutual funds inside the annuity that will not cause you any tax problems and depending on the company that you're with you might be able to roll it and have absolutely no surrender charges or anything it's very possible well that's what I wonder can I move the money that's in the annuity into my 401k stuck in there I know it's stuck in there but you can roll it from a fixed annuity which is a horrible rate of return to a variable annuity which is mutual funds inside your annuity and it'll start performing light-years better and you got a lot of money there that's really underperforming so yeah I would definitely do that yet with a smart investor Pro they can help you do that and the good news is you can access that money before you get to retirement age so that's not gonna kill you there and I'll probably start doing some other investing if what we call bridge investing which is between 55 and 59 what are you gonna live on before you can start pulling down on that other but I think you're gonna be fine if you keep plowing in like you're doing you you're gonna be a millionaire and and then some so you should be on track to retirement legitimately I don't think there's any issue here but some bridge which is outside of retirement investing is in order as well [Music]

[Music] what you're about to watch is the most exciting video ever created on mutual funds now the standard is low but still you're welcome so what is a mutual fund

while the word mutual implies a group of people and fun simply means money so a mutual fund is many different people purchasing a collection of stocks and bonds when you the investor put your money in a mutual fund you're contributing to a pool of money with other investors and that pool is managed by a team of investment professionals or fund managers that select a mix of 90 to 200 stocks and bonds hey hey you awake you with me now the major benefit of mutual funds is that they allow you to invest in a ton of different companies at once which is another way of saying that you won't have all your eggs in one basket hold on we've never really thought about that expression until now if you drop the basket they'd all crack I get it but what's the alternative carrying around a ton of baskets with less eggs in each maybe I don't get it anyway Pierre Ramsey solutions we recommend you balance your investments equally across four types of mutual funds some being more conservative and some being a little more aggressive but whatever you do stay away from passive aggressive mutual funds there are no funds at all so we're gonna put 25% in growth 25% in growth and income 25% in aggressive growth stock and 25% in international mutual funds now a common misconception is that mutual funds have a guaranteed interest rate like a savings account it's just not true instead you have what's called a rate of return because in your mutual fund are a bunch of companies that as a group go up and down in value over time that's why diversification works so well let's say one company and your mutual fund has a slow year and goes down in value and another company has a great year and goes up in value well because you invested in both of them they sort of back each other up which protects you from the risk of investing in a single company let's talk about time mutual funds are long-term investments say it with me people long at least five years why let me show you over several years a mutual funds growth looks like this let's say it dips early then you get scared and pull your money out you risk losing money but if you wait at least five years you have a much better chance at growth if you have more questions and I'm sure that you do because let's face it I'm no Chris Hogan or Dave Ramsey you can find qualified investing professionals near you at Dave Ramsey comm / smart Wester but fair warning they won't be as good looking or hilarious as me but they will be incredibly good at their job and now you [Music] [Applause] so I gotta hit you harder Oh sad I got it like it's a weird I'm not good my left arm okay here we go no touchy [Music] okay hey I'm Christy right one of the most common questions that I hear from women I coach is how much money can they expect to make with their business I am so excited to tell you that I have a brand new tool called profit potential and it will show you exactly that it's totally free all you have to do is put in your email address and answer a few simple questions about your business the app will do all of the math for you after that you'll see your profit potential for each month and for the entire year you'll also see how much money to set aside for taxes whether you need to raise your prices lower your overhead costs or up your hours each week and the best part is that once you're done you can use these easy sliders in the app to adjust each part of your income and see how that affects your overall profits don't let the business side of things overwhelm you and prevent you from starting or growing your own business I want to equip you to make money doing what you love find out your profit potential today at business boutique calm [Music] hey guys i'm rachel cruz and i'm happy to announce that we have a new addition to our family that's right baby number two is here Winston and I are so excited but as every parent knows when your family grows your priorities begin to change suddenly you find yourself making decisions for your kids future over your own after all it's all about them right it's their future you want to preserve and protect that's why term life insurance is so important for you and your spouse I'm so grateful that dad taught me the importance of life insurance early on as I travel the country I hear so many stories about young families left with nothing but debt struggling to survive it doesn't have to be that way term life insurance is so affordable and so easy to get for almost 20 years Xander has partnered with the Dave Ramsey show to help families like yours protect their legacy give them a call or go to their websites I know they will take good care of you and your family here in the lobby making a friend and this guy right here 16 years old and you just told me something crazy what is it our family owns a few companies this guy is running multiple businesses at 16 I don't think I was doing that at 16 I don't know how many of you were making that many responsible decisions but it does remind me about our brand-new product the teen entrepreneur tool box you can pre-order it at Anthony O'Neill calm you keep on truckin AMI and good luck with those companies thank you so much [Applause] [Music]

[Music] Rene is in Chicago welcome to the Dave Ramsey show Rene hi thank you well I'm in Lexington Kentucky going to Chicago Dave my question is how do I let my mother and famil my mother and father that are 89 in 91 how did they retire financially secure my dear sister sold a million to an a million and a half dollars from them over the last 20 to 30 years my brother-in-law scammed my parents my sister was there to take money every week my two brothers and I found out about this about two years ago we knew my father was giving my sister money but not totally wife I mean wiping him out technically speaking she didn't steal it they gave it to her basically dad gave her quite a bit however she opened 29 charge cards you know ten years ago 0% interest maxed each one out in her name or his name in my mother's name and in her in his name without his knowledge and in my mother's name without her knowledge that's identity theft and yes that is theft and yes you go to jail for that that's a federal crime how long ago did she do that he's been doing this for about 20 years as a stray I'm sorry has she done it recently Oh up until two years ago until we caught her okay so you've stopped it now we've totally stopped actually going to jail but in the mean to single in jail well I had elder abuse Georgia elder abuse come out the next day they called the sheriff the sheriff said let's put her in jail my dad who does have a little bit of dementia said no way my mother who knew nothing about this all the sense that I can't put my daughter in jail now two years later after my mother knows what extent that have left her broke she said let's put her in jail it's really like it's too late yeah my brother-in-law's a scammer got my dad hooked up into a scammer gave him bottom line is the money's gone and nobody was willing to prosecute while you could so now we just have to broke old people that gave their money away yes now they make a good salary they make about fifty five thousand a year and then they have assets that are about sixty five sixty five thousand dollars worth of assets no no just income coming in sets but they have them all okay so what's creating the sixty five thousand pension annuities my dad you know nobody is an asset one which was in the annuity oh I you know it's through the state I don't know that I don't like anything new they they oh oh no it gets better they had a home equity loan and she went through three hundred thousand as a out I'm dying with her okay I'm done with her she's gone they didn't prosecute her let's move on okay all I want to talk about is them how much money they have now none okay do they own any real estate yes okay loan they own a home worth about 300 thousand own it yeah there is only I have paid off quite a bit there was a hundred and twenty three hundred twenty-five thousand dollar key locks on it on equity loans I have paid all of them well we have all together my brothers and I paid most of them off and it's about sixty four thousand eleven okay good and they have and they have no cash and they have and they have 65,000 coming in and pensions and 55,000 from something else so they have a hundred and ten thousand dollars a year coming no no 65,000 total holding coming in okay correct so they have a sixty five thousand dollar income and they have a sixty five thousand dollar mortgage on a three hundred thousand dollar house and that's their total financial picture correct I can they live on sixty five thousand dementia they can live on sixty five thousand okay I mean you may end up in a nursing home and you all may be funding some of that or you may have to pay for some in-home care to come care for him or you may sell the house and move them in with one of you all but they can definitely make it on sixty five thousand and it's just a horrid shame that your sisters and her husband are crook and that no one was willing to put them in where they belong in jail but that's just gone that's water under the bridge now you can't live in that anger because no one was willing to do anything about it at the time the people that were necessary to sign the arrest warrants were not willing to sign the arrest warrants and I understand that I mean it's heartbreaking for your own kid to be a crook I get that or your own sister to be a crook I get that but that's all in the past now we're down to pretty simply two old people one with dementia that make fifty sixty five thousand dollar a year income they have a sixty-five thousand dollar mortgage on three hundred thousand dollar house that's it and so you've either got to downsize them in house and get rid of the mortgage and then they can afford to bring in help in that situation to take care of him or we've got to find different living arrangements for him if he's unable to care for himself and that's the process you go through but I'm sorry what a horrible horrible thing that you guys have been through and I don't blame you for being angry but I will tell you this I would suggest just putting it behind you cuz it's done it's done it's over yeah I wouldn't be in the same room with her and I certainly don't want to hear anything near anything that has a number on it that regarding anybody's finances and if she comes anyway near your parents again for God's sakes put her in jail immediately she's got to say she and her scam artist husband have to stay away from them because they don't have enough they don't any more money to get I mean she's bled them dry like you said and so and they're obviously scum unbelievable so it's just man thanks for calling in you know a large percentage of identity theft is by someone you know I mean there's two kinds of identity theft there's the crooks you know the people scamming the internet phishing the internet you know there in Russia or something or wherever they are right they're scamming the Internet they're just cleaning out people's Social Security numbers and identity issues you know they clean out you know Equifax and they get the information they hack Equifax right and get the information and they use that that's a classic internet crook and when we think of identity theft that's what we like to think of this mysterious person in a basement somewhere pecking on a computer but truthfully it's usually your sister or your parents or your kids or your cousin truthfully it's somebody that was your roommate and that's the two types of identity theft that are out there and some identity theft protection things do not cover familial meaning family identity theft it's one of the things that we like about endorsing zandars identity theft and the reason we all have in the Sanders identity theft on all of us here at Ramsey is because it covers that and you know then you wouldn't go and pay off the credit cards and the mother's name that the sister opened you would simply turn it over to Xander's I didn't have people and they would pursue the whole thing and get that wiped out rather than wiping out the money same thing with the he locks if the he locks were illegally signed without power of attorney you can't sign someone else's name that's called identity theft even if it's your mother even if it's your child even if it's your wife you can't sign anyone else's name other than yours unless you have a power of attorney that's called identity theft it's a federal crime you guys it's stealing and when you do that to your parents so you do that to your own kids you're what's known as scum unbelievable bottom feeders Wow Renee I'm so sorry sorry you guys are facing this I'm mad with you but let's move on and go help Mom and Dad this is the Dave Ramsey show [Music]


[Music] hey guys George Campbell here with the all-new Dave Ramsey show app now you can listen and watch like never before on your device wherever you are Radio out of whack give it a smash PC on the fritz smash it to bits mr. show check out past episodes right in the app it's the Dave Ramsey show not that far back customize your highlights to catch all your favorite moments like dead free screams and Dave rants you unethical slime balls but wait there's more you can also see what's coming up next on the show plus you can start right where you left off like this love your work keep it up we've got little hipsters with their growth all stunted and yes we're on Android to get download today you can get it for the low low price of $0 download in the next 30 minutes and it's twice as free but that's not all you can also use it to walk the dog cover your bald spots call for help in case of emergencies I've been in debt and I can't get out you just have to reach a moment where you say I've had it give your car a mirror-like finish sick of paper towels the Dave Ramsey show app holds 80 times little water slice the tomato with ninja-like precision make a tasty smoothie throw it in the dishwasher with the Dave Ramsey show app you'll have Street free plates every time but don't take it from me listen to this random man or woman this is the best up I've ever seen in my life don't delay download today and you'll receive your very own Dave Ramsey chia pet here's how to order watch the live stream on the Dave Ramsey show app check out past episodes customize all your favorite moments and see what's coming up pause/resume and scrolling through the show comes standard download the Dave Ramsey show out today on the Apple App Store or Google Play here's a smart easy way to save money change your air filters changing your air filters regularly lowers your energy bills and if you don't change them you run the risk of burning up your motor and having a huge HVAC repair bill I don't care how busy you are my friends at filter make it incredibly easy to change your air filters as often as you want filter by automatically sends any size replacement filters to your home or bin when you need them you can schedule them to arrive every month or every three months it's up to you it's so convenient you never have to worry about finding the time to pick up air filters filter by comm is your one-stop filter shop for well priced air filters in any size you need plus they ship free within 24 hours you can buy one or you can buy a bunch and when you sign up for auto delivery you get five percent off you literally just set it and forget it get started today at filter by comm as we end today's show I thought I'd have Melissa make a celebratory latte wanted to just thank all of you out there on YouTube Facebook whatever you're watching we're so grateful you're here we just hit seven and a half million views per month on our YouTube channel and it's all because of people like you you're watching your liking you're sharing or engaging we're so grateful are we Melissa yes we are more of the show coming in a few days [Music]


[Applause] [Music] our scripture of the day Bub's tend for a slack hand causes poverty but the hand of the diligent makes rich Booker T Washington says dignify and glorify common laborer it is the bottom of life that we must begin not at the top gives us our question today you can upgrade your home with now through April 22nd got a guaranteed 20% off when you go to slash ramsey slash ramsey our questions from anthony in florida i'm trying to figure out what the best option for saving for college for our three kids should we open 529 se4 each or go with the Florida prepaid option I never do prepaid college I always do 529s and always invest them in good growth stock mutual fund or an ESA and educational savings account either one but I don't do prepaid anytime you prepay anything you prepay your funeral you prepay college you prepay anything the only thing you make on that money that you gave them is how much it goes up between the time you prepay it and the time you actually use it so if you prepay your funeral and 20 years later you actually die then what did you make on that $10,000 or that $4,000 or whatever it is well you made whatever funeral inflation rate is and by the way that's about 4% so you're making about 4% on your money when you prepay a funeral so you don't prepay if you know you invest the money and how the investments pay for your funeral same amount of money by the way same thing for college what is college to which all college - it's just going up yeah oh yeah I know but what are the real facts okay let's just get away from all your feelings the facts are that college tuition has gone up an average of 7% a year for the last fifty-two years seven percent a year that's your inflation rate so you're making seven percent on your money when you do prepaid college tuition it's not bad it's better than putting it in a CD at one percent right but you could have put it in a mutual fund and made ten or twelve so put it in a mutual fund inside of a 529 or an ESA make ten or twelve while it goes up seven you're making more than it's going up you're actually making ground on the college experience hello see what I'm doing that's how it works folks David's in Seattle hey David welcome to the Dave Ramsey show hey thanks for taking my call sure what's up so my wife and I were wondering what we should do with our extra money we just finished saving up our emergency fund and enough money to purchase our next car when we have our next kid good we're getting about five hundred to a thousand dollars a month of savings we don't know if we should put it more in our retirement account or pay down our mortgage faster or put some more money into stocks what do you think well I don't buy single stocks so that one's easy what we do tell people to do once they're debt-free other than their home and you then you have your baby you have your emergency fund in place that's baby step three we call it then that takes you to what we call baby steps four five and six which we do simultaneously baby step four is 15% of your income going into retirement are you doing that much yet right now we contribute 5% in the company matches five okay then I would raise that that would be my first goal I want to get you to 15% of your household income that you are putting not counting the match into retirement in 401ks Roth IRAs Roth 401 KS whatever you've got available to you in good growth stock mutual funds I spread my 401k personal 401k investing and I've always recommended across four types of mutual funds growth growth and income aggressive growth and international I spread it across those four once you're doing 15 percent into that then I start working on kids college you got kids you have to kids what are you doing for college nothing yet okay then we started a little college fund like we were just talking about a minute ago with that question of the day and you can open an ESA is the first two thousand dollars a year per kid if you wanted to do that that's one hundred and sixty six dollars and 67 cents a month coming out of your checking account it's two thousand dollars a year if you got young kids that's a really really good start on college like that's gonna take care of most of it in other words and you know when you have a baby you just start these dad another one and you just keep doing that and then anything above as we address college anything above that we throw it the house so in your case right now I'm our first goal is to get you up to fifteen percent of your income going into retirement at what we call baby step four so if you'll hold on I'll have Kelly pick up and we will send you a copy of the book the Total Money Makeover it outlines these baby steps of exactly what to do when to do it how to do it when not to do something when to do what and it walks you through a basic really straightforward clear plan for your financial planning it's gonna take you right where you need to go so hold on Kelly will pick up and it's the baby steps on steroids it's called the Total Money Makeover it'll help you get this done Aaron is with us in Kansas City hi Aaron how are you hey Dave I'm doing all right good how can I help hey my wife and I are basically on baby step four yeah so we've got about twenty thousand dollars in the bank and it turns out that we're pregnant with triplets exciting however we just moved into our house and we're gonna have to do some remodeling so would you recommend taking that that twenty thousand dollars to do the remodeling or is it better to do a home equity line credit better not to do that our modeling well we're at ten kids now so you are blessed unbelievable we are blessed okay so the $20,000 is your emergency fund right okay in order to use that money you have to declare this to be an emergency well my wife and I definitely feel that it's an emergency with the kids coming in and just not having a space for them okay what is your household income well right now it's about twelve thousand a month but my wife will have to be dropping out of work for so it's gonna go down to about eight thousand a month okay and what is the extent of the renovations what is it going to cost you well we haven't gotten the final price back but it'll be really close to that $20,000 okay so you're willing to have ten kids and no money in a renovated house wow that's a big emergency so what I'm probably doing if I'm in your shoes is I'm gonna cash flow this renovation during this pregnancy out of this wonderful household income and leave my emergency fund alone okay like I don't know $3,000 $4,000 a month we're gonna have no life but you you gotta get the river renovation done I just did scare me to death to have ten kids and zero money yeah scare me to death to have ten kids in a home equity loan - yeah you can't run the dead every time you have a problem do it if you do you're gonna be broke your whole life yeah Mike you know because my wife can have to go out the work force for probably a year yeah and and then when she gets back and you know we'll get our income back up but yeah but that's four thousand of the of the twelve right yeah you got $8,000 anytime you got a lot of mouths to feed but you got a good income so and you got no dad right except the house right and how much is your house payment it did two thousand two hundred a month okay well if you guys get on a really tight written budget where every dollar has an assignment every month you know I'm gonna squeeze that budget real tight because this is important to do this renovation apparently I don't I mean you're the one saying it is I'm not there I can't even imagine triplets or ten kids either one but Wow Wow so but I got to tell you this I had the idea of being a zero money even with a hundred thousand dollars your income scared me to death and I can't tell you to go into debt I think that's suicide so I think you got some bad choices here to make and I'm gonna do my best to cash flow it to avoid the bad choices that puts this our that I rims the show in the books we'll be back with you before you know it in the meantime remember there's ultimately only one way to financial peace and that's to walk daily with the Prince of Peace Christ Jesus [Music]


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