Normal Sucks! You Don’t Want To Be Normal
2024-04-09 01:58:26
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Live from the headquarters of Ramsey Solutions, it's the Ramsey Show, where we help people build wealth, do work that they love, and create actual, amazing relationships. Rachel Cruz, Ramsey personality, number one, bestselling author, co-host of the Smart Money Happy Hour, insanely popular podcast on the Ramsey Networks, and my daughter. She's my co-host today. The phone number here, if you want to talk about your life and your money, the phone number is 888-825-5225.. Jennifer starts this hour in.
Baltimore. Hi, Jennifer, how are you? Hi, I'm doing well. Thanks for taking my call. Sure.
What's up? So I am actually calling on somebody else's behalf, somebody who I think might need some help, but maybe doesn't think that they do. So. my father is actually going to be inheriting close to a million dollars in the next couple months. And as I've gotten older and starting to ask more pointed questions, realizing he really hasn't planned for his retirement, he kind of just assumed he'd be getting enough to retire, and now says, you know, obviously a million dollars isn't as much as he thought, he's not going to be able to live off that.
And I've just seen a couple generations before me really kind of mismanaged money that they've inherited. And I'm hoping to kind of do something different.
That you're going to do something different or he is?
He says he's open to my recommendations. How old is he, Jennifer?
He's 65, 67.
. Okay.
Okay. And so has he got a bunch of debt?
So I've found out that he has a HELOC out on the house for about $100,000.
. He was contributing to 401k for a while, while his employer was matching. And when they stopped matching, he stopped contributing. He doesn't have a Roth IRA. He's got some dividends and some like stock money that he does receive quarterly.
And he's got gold squirreled away. But he says, you know, financial planners are parasites and high yield savings accounts are scams.
And so, you know, he's only now looking into putting things in a trust and maybe getting life insurance and getting a will done. But he really kind of has just been banking on getting.
money. Was he banking on this money from this inheritance? Like, was it from a parent and he?
was just waiting, or what was that? Yeah.
So when my great grandmother passed, she had about $24 million in her estate. And that was unfortunately embezzled, gambled away a lot by one of my great uncles. So it also wasn't in a trust. So the government took half. And when my grandparents were getting older, they decided their philosophy was the government's just going to take most of it.
So we want to try to get rid of it. So they did kind of sporadic payouts. I mean, they were very generous in covering health care expenses for myself, for all of my cousins, paid for college for their children. What do you think the best thing to happen today is? I want him to get rid of the HELOC and I want him to look into investing property or some advice of where he could be putting money other than just, you know, he took $100,000 HELOC out of the house and put it into the stock market.
And that's where the dividends came from. Yes.
And so, you know,
I've been trying to work with my sister. So here's the thing. Number one, I don't think this is going to work. Okay. Your dad has a 40 year period of sitting on his cynical hands, doing nothing and waiting on someone else to spoon feed him.
The fact that, 65 years old, he's going to jump up and grow a new brain. That's pretty wishful thinking. Yeah. Okay. I wish it wasn't true, but I'm 63..
And the chance of me growing a new brain is pretty low. I'm pretty set in my ways. So whatever screwed up about old Dave's probably going to stick that way. So it's just hard to teach old dog new tricks. I'm one of them.
And you can ask the one sitting next to me. She's tried to teach me some new tricks.
and I hadn't learned them one. I just give suggestions. I know. Yeah, you do. And that's.
what Jennifer's trying to do. Give suggestions. No, I know. But Jennifer, I hear your heart and I really do appreciate it. But the reality is, our parents are set in their ways.
I'm not picking.
on your dad. I'm probably just like him. I've got the spiritual gift of cynicism too. But I mean, these people are all parasites and scam artists. and no, they're not.
That's a dumb butt statement. Okay. They're not all parasites and scam artists. Now, some financial people are goobers, but there's some goobers in almost any profession, whatever profession he came out of, there's a crook or two hanging out there too. So, but there's good people in the financial world that can sit down, and what he needs is someone to teach him from the financial world, like a good smart investor, pro, what's available and what his job is as the manager of a million dollars of God's money.
You are now the manager of God's money. Your job is to manage it well. And so, get the stupid gold sold, pay off the home equity loan immediately, learn to live on a budget, go be a productive citizen, create something instead of sitting around waiting on someone else. Talk about parasites, waiting on someone else to feed you, waiting on mom and dad's dadgum inheritance money to come in, bless his heart. I mean, I feel sorry for him.
He really needs, he's missed out on so much good that life had for him. And, I hope, for the next 20 years before he dies, he's got some good coming to him, where he gets the opportunity to serve others and create something and contribute to society and walk with the dignity that that brings. That's what I want for him. So, but I, and that's what you want for him. My problem is I don't know that.
he said he's willing to take your input until you tell him.
something he doesn't like.
Am I wrong? No. And what's been really frustrating is trying to give.
him advice while stroking his ego. Yeah. No, I'm not going to stroke his ego. I'm not going to do.
it. So, you can tell. So, the thing is this, what I want to help you with is what you're attempting to do is very kind and very noble, and it is the proper thing to do. But I want to give you realistic expectations, because I don't want you to come away from this disappointed that you couldn't do it, because I'm going to give you a 5% chance. you pull this off because it is, you're trying to change other people and until they really want to change, you can't do it.
I do it for a living and I have had to learn that I don't answer questions that aren't asked. When you ask a question, I'm going to answer it, because that's my duty. But I'm not going to just walk up to people and start preaching at them because they don't do nothing. They just look at you and do nothing. So, I mean, like a friend of mine leased a car, drove it up in front of my house the other day, and he knows I think leasing cars are stupid, and he drove it up in front of my house.
So, what am I going to do? Go, you're stupid. No, I didn't say that. Great car. He didn't ask my opinion.
He just brought his car over to show it to me. So, great car. But I think, Jennifer,
a goal would be if he could sit down with a third party, a Smart Investor Pro, and at least just have an initial meeting to see his options. Part of a teacher. They're there to teach you not to do it for you. That would be a good goal. But if you can get them there and then what he?
chooses to do after, I don't know. That's your first step. Go to ramsaysolutions.com, click on Smart Investor. They can help guide him to get his will done. He's got to get that done.
Talk about giving the government money. Try not doing a will. Oh, my gosh. Let the government be in control of it. No.
But please, honey, don't be disappointed if this doesn't all work out. This is the Ramsey Show.
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Well, you know what happens after.
the 15th of April? The worst day ever. You know what happens the next day? Awesome stuff. Anything's better than the 15th of April.
On the 16th of April, the next day, Rachel's new book will come out. So, you got to have a little celebration after tax season. I'm glad for where I am. A new book on gratitude for your kiddos. And Lauren did a great job with these.
Yes, Lauren Gallegos. Shout out to her. We love her. And she's just sweet as she can be anyway. But her illustrations are just amazing.
I mean, this kid. And so, this is all about gratitude. The other one was about contentment. I'm glad for what I have. Home.
Home is where the heart is. That's right. Yeah. So, when I was,
writing it, I was like, how do you teach it? Because contentment, gratitude, generosity are three principles that are really important for me to teach my kids. And just kind of that emotional side of money. And when you think about gratitude with kids, I'm like, of course, saying thank you and manners. All of that is important.
But for these little ones, I'm like, when you can start to grasp the things that can't be taken away from you. This idea of the love of your family, your home, not just your house, but the home, the environment. When you can start there and that be the foundation at which they learn, gratitude, I think, is sweet. So, the little animals, they go on an adventure to learn that really where they belong is where they were. And God specifically has put them in a place for a certain time.
And the more grateful you are, the more your heart grows. It's the last little sentence of the book, but it's really sweet. It's a great one. So, I hope you guys enjoy it. It's going to be fun.
It comes out a week from now.
And you're going to do a little book tour with it, right? Yes. You're going to do some signings,
a little book readings. Yeah. So, next week, I'm hitting the road. So, I'll be in New York doing some media next Tuesday, a week from now, and then fly to Phoenix. So, I'll be in Phoenix.
You have the.
. Read those off. Phoenix at Desert Ridge, Barnes & Noble from 1 to 2 in the afternoon.
doing the signing. On Wednesday. And I'm going to read the book and then do a signing for the kiddos. And then over to LA on the 18th from 7 to 8 p.m. at the Barnes & Noble at the Grove.
Oh, that's a good store. I've been to most... I've been to all these stores. Okay. And Dallas, Lincoln Park, from 1 to 2 p.m.
Another good store, Barnes & Noble. All these are Barnes & Noble. Atlanta at Mansell Crossing. Really? That's cool.
426.
. You'll be there. That's the next week. Yeah. Yeah.
And that's from 1 to 2 p.
m. So, book tours are kind of... We used to go around, do 40 cities and do signings and do media in every city. and all this when we launch a book. And they're kind of out of vogue.
Number one, there's not many bookstores left. They're just about gone. Number two, there's a lot of the local media is gone. It's dried up. And so, that methodology of launching and marketing a book and going out there is gone.
But you're kind of just doing this almost for fun. Yes. Well, I wanted to. I wanted to with the.
first one. And so, the way timing worked out with holidays didn't. So, when this one came out, I was like, I really do. I want to go, yeah, and be with people and be with your kids. So, make sure to do that.
And you can still pre-order for the next week. And if you do that, you'll actually get a link. I'm going to do a story time via Zoom at the end of April for everyone that pre-orders. So, at 7 o'clock, I'll do a big reading. My kids will be there and all of it.
So, you can get that link if you pre-order. And so, you can go to rachelcruze.com for that. Yeah.
Well, spoiler alert, I've already been reading it to the grandkids and they love it. So, particularly the Daniel's little boy, he just, he's like, Papa Dave, you've got to read. Papa Dave, you've got to read. And we know that, I mean, we know all the data. Parents that read, kids that get read to, their IQs go up, their EQs go up.
They are most likely going to be readers and writers. And people that read, you know, when we're interviewing somebody for a leadership position at Ramsey, we ask what books they've read, because there are no real leaders that aren't readers. So, you've got to be constantly growing. And the only way to do that is be feeding your brain. And so, I mean, we know all the data on this, and it starts at.
this age. It starts with little ones. And it's a short book, parents. So, you're welcome for that too, because I hate the bedtime stories that just keep going. So,
it's short. It's short. I mean, they can, how is it that at four, they already know which of the?
Dr. Seuss's is forever long? And you can't skip a page because then they want it. I do not like.
Green Eggs and Ham, Sam, I am. I'm just saying. All right. Chris is with us. Chris is in Memphis,
Tennessee. Hi, Chris. Welcome to the Ramsey Show. Hey, good, good, almost afternoon, y'all. Yeah, it is.
How can we help? Hey, so my wife and I just found out that we are expecting our second child. We are overjoyed at this. We have a two-year-old. Yay, awesomeness.
And we've also just started getting our act together financially. We've been debt-free actually two times in our four-year marriage and apparently learned nothing. And so, we're finally at a point. I've been binge-watching. you guys.
Shout out to the YouTube moderators. I always love seeing the comments there and their responses. But my question is relative to, so we're in baby step two. We have $1,000.. We're attacking our credit card debt.
We have about $42,000 of total debt, including student loans, credit cards, and a Jeep that you're probably going to tell me to sell.
But I'm kind of confused about stork mode. We still have pretty much everything from our first child. My wife plans on taking three to six months off to be home with both of our kids. She's a nurse. I work in the automotive industry.
And I guess my question is when should I pause, attacking our debt like crazy, and start saving up for the uncertainty of having a child?
No.
Right now. Yeah, push, pause on the whole total money makeover thing and pile up cash. So, here's the thing. How much cash can you pile up in nine months?
If we stop paying off debt, probably $12,000 to $14,000.
Okay. So, $15,000 is in the account because you are going to stop paying off debt if you.
follow what we tell you to do. And baby comes healthy, no problem. Insurance covers what it's.
supposed to cover. Mom is healthy. No problem. They come home from the hospital. Three days later, you clean out that account and pay it down on the debt.
The amount that you lost by doing that is really close to zero.
You lost no traction. You will be in exactly the same place 10 months from.
now if you pay down on the debt by $15,000, or if you put $15,000 in the account and then pay down.
on the debt.
I mean, the only difference would be a little bit of interest on the debt that you pay during that nine months, but it's negligible. It's less than $40 or $50.. Okay. So, we're not really playing. And what that $15,000 gives you is peace of mind.
What it gives her is peace of mind, because what we want to concentrate on is the beauty and the elegance of the birth and another child coming, not be distracted by any money crap.
Like if there's a little hiccup of some kind, think about it. You got the money.
Yeah. Chris, how much do you guys make a year?
Total this year, we're on track to be right under a hundred.
Okay. And how much was the Jeep when you were like, oh, the Jeep, you're going to tell me to.
sell it, but how much is that? It's worth? about 20.. The remaining loan balance on it is 11.. Yeah.
No, that's not necessarily selling. If you're making a hundred, that's-.
No, yeah, you're fine. Well, I was going to say, if there was like one big move you wanted to do, if it was at a point where that car payment was so exhausting and you could sell it and make some money on it or something like that, if there was a situation there, I would be okay if you did that. But just in general, just pausing and having cash in the bank during this is, yeah.
Let me fast forward 10 months, okay? You save 15,000, baby's home, you pay off 15,000 in debt.
What's going to keep you on track this time?
My wife and I are really looking further than six months in the future. We're buying, we've been living in a inherited home that we're actually starting to look towards purchasing from her parents. And looking at that has made us take a much longer perspective.
on everything. What do you do in the automotive industry?
I work as a program manager. I connect suppliers with warehouses across the country to help them get their parts into parts stores and onto your car.
Okay. All right. Are you 25??
I'm 29.
Okay. All right. Cool. All right. Because now's the time, dude.
You don't get to restart this crap six times and go win. You need to play through this time for the sake of this cat.
And hold on the line, Chris. Austin will pick up and I'll give you my new kids book. I'm glad for where I am and I'm glad for what I have. I'll give you both for the little ones.
I want you to play through this time. I want you to finish. Finish well, my man. Finish well.
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Rachel Cruz, Ramsey, personality, number one.
best-selling. author, is my co-host. today. Victoria is with us in Springfield. Hey, Victoria, how are?
you? I'm well, how are you? Better than I deserve. What's up? Well, I was calling because I'm curious to find out how I can get my name off of my parents' debt.
How did your name get on your parents' debt? So, apparently, when we were younger, they put my and my brother's name on their credit cards to build credit, which at the time may have been a good idea. No, it wasn't. It was called identity theft. Yeah, they've been overspending a lot, and that's reflecting on my credit score.
And then it was about two years ago, we've been timeshare owners for a very long time, and about two years ago they added my brother and I as owners, but we have no idea in terms of like what to do with this timeshare, and it's kind of becoming a big financial headache for the family. And so I kind of want out because to me it's not worth all the arguments and the financial stress.
that it's causing.
Yeah, this is a, it's something that we're seeing more and more, our parents. So, just as a warning for parents out there that this is a trend that is going on, that people are doing this. They're putting their kids on their debt or on their credit card, specifically thinking, oh yeah, we're going to build up their credit, and then this is what ends up happening, Victoria, is that you get the. the brunt end of it. So, at that end of like, have you talked to them about them taking your name off of the credit card?
specifically? The timeshare will be more complicated.
Yeah, so we've brought it up to them because now it's to the point where, like my brother and sister-in-law can't buy another house because their debt to income ratio is affected by their credit card debt, like my parents' credit card debt, so it's kind of a family discretion. And so my parents moved their credit, or the debt that they had on one credit card, to another credit card that has a zero percent interest and does not have our names on it, but... And then they need to close that other account. Exactly. And that gets your name off of it.
I think they still owe a little bit more on that.
Pay it off and close the account. That gets your name off of it. Yeah. You guys are like being midwestern sweet people.
Hillbillies would have already like punched somebody.
This is just not.
okay. You should be angry. Yeah, it's one of the things where it caused a lot of like family fights. You know, just because we're... I'm new to the Ramsey method.
It's not the Ramsey method. It's called.
illegal. It's criminal fraud, okay? I mean, it's... When you add somebody else's name to a legal document without having a power of attorney to do so, that's called criminal fraud.
I mean, it's illegal. It's like serious. You don't just... God, man. Well, people are doing...
I mean, I know people are doing it, but it's illegal as heck, man. Well, when you put their name.
as a minor, specifically, on it.
. It's illegal. Well, they're not taking it and opening it solely in their name. But the point is, is that it's affecting Victoria, obviously, in all of it. Straight up, stupid.
So, I mean, yeah. So, Victoria, I mean, that's. the answer is for them to pay it off, close the account. But then, when you get into... And then, you know, call and yell at.
the timeshare company and go, I did not give you permission to put.
. No one has permission to put my name on there. And if you don't take my name off of there in like 36 seconds, my attorney is going to punch your lights out. I mean, you need to get up in some people's grill. Yeah, because I want my name off of it.
Listen, let me tell you, timeshare is legalized fraud. It's a horrible product. And so your parents are such wonderful people that they signed their kids up for two of the worst financial products on the planet. Timeshares and credit cards. God, what kind of parents are these?
Well, she can't control the parents. Why are you yelling at her? I'm not yelling at her. I'm just saying that these guys, man... So, if I'm you, I'm going for the juggler on this.
I mean, you need to get the timeshare people on the line and ring them out. You do not have my signature. I am not responsible. And if you don't take my name off of this, I'm going to.
own your little company. Because that's true, Victoria, right? You didn't sign your name. You're not liable. It's identity theft.
I'm double-checking that they weren't at Christmas and the parents were like, here, sign this. And she forgot about it and realized that. I was just double-checking. You didn't sign anything, right, Victoria? No, the credit cards they put me on.
The timeshare, I did sign two years ago because we had no knowledge. There we go. Okay. No, it's okay. You need to figure out how to get my name out of it.
Exactly. So,
Helber, how does she get out of it? I have no idea. I mean, you signed up for a timeshare.
How do you get out of a timeshare? You can't. You're stuck in a thicket of briars.
I mean, if the family can talk the timeshare company into retitling this, I'll be shocked. But oh, God.
I mean, if you call me up and say, I just bought a timeshare, I would go, well, that was really a ridiculously dumb activity. Now, how do I get out of it? They're almost impossible to get out of. They're just horrible. It's a grotesque industry and they feed on the weak.
I honestly don't know how to tell you other than hire an attorney and start talking to them about how you're going to sue them. if they don't, let you take you off of it. And some of these.
attorneys go after timeshare companies and do a good job with them.
If everyone came in, because she said her brother or sister was in on it too. So, if it was her and the sibling and the parents, they all got an attorney together to try to get out, is that a better way? Or getting out a fourth would be more difficult? Do you know what I mean? If there could be an agreement that they all get?
out, is that an easier way? Yeah. Let's pretend you could get this particular set of parents to do anything. Let's pretend you could do that. And they actually did start the legal process together.
I can't depend on them to finish it, because the things they're willing to do to their own children.
baffles the mind. I hear you, but the authorized user on credit cards is a legal thing, and people are doing that today. It is not a legal thing. Yes, it is. Authorized users.
Authorized user.
is not liable for the debt. They didn't sign up authorized user. They were owners of the account. It shouldn't be showing up on their credit bureau. if they're just an authorized user.
It's not supposed to. That's a different issue. You can clear that off. because an authorized user is not an owner of the account. They're not liable legally.
Yes, but they do get the perks of the credit of the account. They're not supposed to. They're not supposed to. But they are. Because they're not an owner of the account.
They're not financially responsible for the account. And so, yeah, this is where stupid parents are doing to their kids. They're just ridiculous. And if you're doing this to your kid, you're stupid. You should stop it.
Don't mess up your kid's life. This poor lady right here is dealing with people like you. if you're doing this to your kid. So, gosh, I'm so sorry, honey. I don't have an answer for you.
Get the credit cards closed completely down. That'll get rid of it either way. And then you've got a fight on your hands with the idiot timeshare industry. It is the most grotesque, fraud-filled, horrible industry on the planet. They're just awful.
It's just. it's the worst. And I've dealt with them for 20 years trying to get people out. We had a company that did it for a while and the company went sideways.
and so screwed up. If you had to, Dave, George and I played this game on happy hour, would you rather have a timeshare or a leased car?
I don't have to enter. I don't have to enter the land of stupid and pick one option. Okay, I just I'm going to turn around and leave the land of stupid. I'm not going to pick one of the options. So why would I do that?
So it's a fun game. It's not a fun game. Just lighten the mood. No, it's not. There's nothing light about it.
It just aggravates me. But yeah, the so gosh, Victoria, I'm sorry. I'm just angry for you. This just pisses me off that your mom and dad would treat their own children this way. It's affecting your brother and sister in law's ability to buy a home.
This is awful. It's just awful. And, you know, the fact that your family is so freaking dysfunctional that your Christmas present is the opportunity to sign.
co-sign on a timeshare. No, I don't know if that was true. I was using that as an example.
Just when you come back Christmas, sign up. You know, it's just like, well, I don't know if that was what happened. I know. I know. But I'm just.
it's what happened. It's the way this family works. So I'm so sorry for you. I do not know. The only thing I know how to do is go after the timeshare business.
the only way they understand. And that's a metaphorical to before to the face. It's the only thing you can do to get their attention. You have to hit them hard. It's only thing they get.
They are nasty, fraudulent industry. They're horrible. Have I been unclear America? This is the Ramsey show.
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Well, just before showtime, Kristen Cannon, our Vice President of Publishing for Ramsey Press, brought in a brand new copy of Ken's new book, which comes out in May.
Oh, it's beautiful.
Actually, the thing, yeah. So, find the work you're wired to do. It includes a code. In the back, it's got this little tear-off thing and when you tear it off, it's going to open up and you'll see the code to enter for the Get Clear Career Assessment. We've sold almost 100,000 of those assessments to you, folks.
They're very good. It's one of the best digital products we've ever developed at Ramsey to help you figure out what you're good at, where you ought to go with your career, direction, to take you towards your talents, your passions, all of that. It's incredible. So, an assessment code is included with the new book, because the new book is there to describe to you the results of the assessment and what to do with it. And so, that's what this does.
So, if you have never taken the assessment, you can get the book. It comes with an e-book with an assessment, an audio book with an assessment code, and the hardback book. So, you get three of the assessments to give to friends and relatives or whatever, and the books to help you tell how to do it. And it comes out and it's on pre-sale right now. You can get it,
but we'll actually ship them in early May. Yeah, I've had friends, we've had family. take that assessment, so it really is. It's really, really well done. It's huge.
It's fabulous.
Zach is with us in Dallas. Hey, Zach, how are you? Doing well. How about yourself? Better than I deserve.
How can I help?
So, I'm getting married this December. My fiance currently has a 2006 Mustang that's starting to fall apart. I would like to get her a new vehicle after we're married, or we would like to get a new vehicle after we're married. Not as a wedding present, just as getting her something better, that's more reliable.
I currently make about $110,000 a year. I'm debt-free. I own a house. my parents gifted me. What is an acceptable budget to get her a vehicle?
And one reason I'm asking is her family's very judgmental and causes problems whenever she gets new things or nice things. I'm trying to find a budget that won't get too much flack from them, but also gets her.
in a nice, reliable vehicle.
Well, I would be looking at the latter, Zach. I think that first part of worrying about what they think, that's going to be a long, exhausting life that you're going to live if that's a filter that you use. And so I think it's a good practice for this to be the first purchase that you guys make solely as a couple, based on your numbers, which you guys want, and regardless of the judgment that probably will be coming, because how you guys are set up already with a paid-for house. You have no debt. You make great money.
You guys will probably be purchasing some things in the near, far future that they will be judging, probably a lot throughout your marriage. So I think it's a good practice to say, here's the first purchase we're going to make as our own family unit, and it's going to be a stretch for you guys mostly, but I would do that. And then, looking at the numbers, do you have any money saved? About $125,000 in the bank.
You're a stud. Good for you. How old are you? 21.. You're killing me, man.
You are so killing. I'm so proud of you. Great job, Zach. Man, she got a catch. You're something else.
I'm six classes away.
from graduating with a degree. I have no college debt, and I work about 70 hours a week right now.
What's your degree in? Business Management. You're going to be a multi-millionaire.
You're amazing. So nice. Good for you. So the rule of thumb on cars is they go down in value.
You know that. Yes. A guy like you knows that already. That's not something I have to teach you.
So we tell folks don't buy things with motors and wheels, boats, sea-dos, snowmobiles, and tractors. Don't buy things with motors and wheels that all add up. When you add up all your stuff with motors and wheels to more than half your annual income, because it all goes down in value.
And so in your case, you make $100,000.
. You're talking about spending $20,000 on her, and you're well in range, right?
Yes. Yeah. It's no big deal. She doesn't need a $70,000 car. It doesn't fit your budget.
Yeah. We were looking at a new Honda CRV, which runs about $38,000 to $40,000..
Okay. I would not do a new one unless you've got a million-dollar net worth, and you don't. So I would hold back on that. But maximum, when you're done, your car plus her car, does not need to be more than 50% of your take-home pay and pay cash, okay? Okay.
So, I mean, 50% of your gross annual. So your gross annual together is going to be what?
She's currently a full-time student, so just my $10,000.
What's her degree in? It's in archaeology. When she graduated? She really wants to do 2025..
Okay. So, at the time you're doing this, it's going to be your income, and you make what? $70,000.. $110,000.. $110,000..
I'm sorry. Okay. So $55,000 total. What's your car worth?
My truck is worth about $50,000.
Okay. Well, you're way over, okay? So, you know, $15,000, $20,000 for her, max, and then don't do this again. It's the only dumb thing you've done in the whole story. you told me.
You really have got your act together, except that truck.
Was it paid for? You paid cash for the truck?
I did. The job I got, I needed to have a $21,000-.
You did not need a $50,000 truck. I don't care what job.
It's my biggest regret so far. It's your biggest mistake so far. Everything else in your story is fabulous. So you've been really smart, but you're going to have too much tied up in cars and don't do it again, but you're 21.. You've got the rest of your life to do smart, so you're fine.
Everything's okay. You're great. You're great. Now, when you buy her a $25,000 or a $20,000 car or something like that, which is about what a used CRV, in other words, to put her in something nicer. Back to the other part of the question.
Rachel's right. Trying to please judgmental people that you love and you actually care about their judgment is exhausting.
You're a really nice young man, and I want to teach you to continue to be nice to them on the outside, but in the inside, when they start talking like that, I just want you to say, none-ya.
None-ya business. They currently don't like me already. I don't care.
Frustrated, they deal with her.
Yeah, that's fine. She needs to learn to hear in her head, when they start something, just go none-ya. Because let me tell you how many times one of my grown kids called and asked me if they should buy a car.
Zero.
Or asked me when they should have a baby. Zero. Which is appropriate, by the way. They don't need my permission. They're what's known as grown.
Okay? And do they... You know, Rachel drives one of those rolling batteries. Why would I condone that? I wouldn't condone that Tesla stuff.
It's not like a real car. And they catch fire.
I'll beat you on the interstate. That's for sure.
You beat me in the parking lot, too. I've seen you.
I'm kidding around. So we could just have fun with it, and that's the extent of my judgment.
Yeah, but there's a relationship.
. I mean, they're fractured already before they even enter the marriage. Zach, I'm just curious. I mean, she's still in school. And I had a semester left of college when I got married in December.
So there's no judgment on my end. I'm just curious. What's causing a level of urgency to get married now? If she has a full year left, you're still in school, and the parent, that's not great with the family. Is it just?
you guys love each other, and this is it?
For the most part, yes. That's really all there is to. it, is that we've dated for two years. We're ready to get married, ready to move in, and see less of a reason to wait than we do to.
go ahead and get married. Gotcha. Okay. I was just curious.
We want to live together and start our lives, and we want to do it the right way. Good for you. Marriage, was the next step.
Good for you. Well, what's going to happen is you're just going to go pick up Henry Cloud's book, Boundaries, because that's what I'm saying, is just you got to have boundaries. Just smile at them and go, yeah, okay. If you filter your decisions through what they think, Rachel's exactly right. It's going to be exhausting, because you cannot anticipate what crazy is going to do.
That's why it's known as crazy. You'll never make them happy. You could buy a $5,000 car.
It doesn't matter what you do.
The point is, you reach a point that you're not doing anything for.
them, and that point is the day you say, I do. Which you're in the hardest season, though. I mean, from an age-wise, young, the amount of time from a parent's handoff to the real world. I mean, the older you get and the more life experiences and more decisions you make, the easier it is. This is the hardest.
This will be the hardest season to feel that and actually walk through those motions. You guys together, it's like you just lock arms and just say, and even have like a funny code. If you guys go to Christmas and they make a comment, just like have a thing with each other of like, I'm just gonna like, scratch my ear and be like, I'm dying inside, but just me and you know, right? Like you gotta like, just, you gotta have fun with it and lean on each other. But congratulations, Zach.
We're excited for you guys. Now I'm looking for.
funny codes.
This is the Ramsey Show.
Live from the headquarters of Ramsey Solutions, it's the Ramsey Show, where we help people build wealth, do work that they love, and create actual, amazing relationships. Rachel Cruz, number one best-selling author, host of the Rachel Cruz Show, co-host of the Smart Money Happy Hour, both Ramsey Network It's, and my daughter, Ramsey Personality's my co-host today. Open phones at 888-825-5225.. Rachel, this is right up your alley. Let's jump in and do the question of the day.
It's Financial Literacy Month, and one of the ways we're celebrating is taking questions from students in high schools that are teaching our high school curriculum, Foundations in Personal Finance. And, by the way, Texas and South Carolina have just mandated, they're the latest two states to mandate that personal finance be taught as a graduation requirement in their high schools. Salute to you two states. Well done. There's a time that the legislature in your state did good work, and, of course, we're one of the options that are adopted by your state board of education, whatever it is, and have adopted us in both cases, which means we're one of the options the schools are selecting from, and we're honored that a whole bunch of schools in both of those states are now going to add this.
So today's question comes from a student.
at Beebe High School. Yes, and it says, if you are a natural spender, how do you learn to save when your tendency is to spend? Oh, I thought you said it's my kind of question. Well, it's you and me both. We're both natural spenders.
Just on the break too, I was like, just buy the thing. Dad, we're talking about something else. Yeah, I mean, I think for me, I had to, I realized two things pretty quickly. Number one, I realized if I didn't save at all, then the amount of stress, the future Rachel, of what she would want to do, like all of that, is gone, right? There's something there to say.
I'm going to plan for the future, and that's motivating to me. So that kind of helped get this rhythm for me to be able to say, okay, the savings is there. And there is to a point, it's a spender. And again, I think savers have their negatives. We can talk about that.
But the spender negative at times is, we can get in a rhythm of like, oh, if I just, that thing is exciting to buy and I get some excitement from it. And then that excitement fades, and it may fade an hour after you buy the thing. It may fade a week after you buy the thing, but eventually that excitement fades. And if you depend on your happiness or your joy in life to be on that type of excitement, you're going to be a rat in a wheel for the rest of your life. And it becomes a contentment issue at that point, not just a money, dollars and cents issue.
And so that part's very important. And that's a hard one. I mean, the contentment idea is really difficult. I think that spenders can kind of be that rat in a wheel at times and just get, get, get. And so understanding where your joy, your happiness, your identity even comes from.
And, and one question I even ask myself, Dave, when I buy stuff for me, is I filter through the question. If nobody sees this purchase, do I still want it? Like, is there any motivator for what, whether it's a compliment or what someone's going to think about me? Like, is that any level of motivation? If you never posted online that you had bought this.
Yeah. Or you went on that vacation. If nobody knew, like whatever? it is. A tree falls in the woods and no one is there.
The spender's still spending. Yeah. So it's just making sure the motives, you know, are healthy.
It's really good. That is healthy, because that trying to get affirmation from others based on the label is a real problem for spenders. Yep. So spending as a reformed spender myself, a matured spender, I still spend, it's still my natural bent, but I'm also a math nerd. So I came up with two things that caused me to do it in my case.
One is I knew if I saved more, I could spend more because I would have more. And so the quality of car I drive today far exceeds the quality of car when I didn't save back in the day. And I was a broke person. So, uh, yeah, it, you get, you get a better life, you know, and a better spender life. And the second thing is not always true, but in the 30 something years I've been doing this more often than not, it's a generality, but more often than not, spenders are also generous people.
They like to give, and you can't give if you're broke. And if you give a thousand dollar car or a $2,000 car to a single mom and it changes their life, what if you did 10 of them and you changed 10 of them's life for 20,000 instead of 2000,? you can't do that if you're broke. And so the way you get that 20,000 to give is to save it. And so the enjoyment of money is what a spender likes and the enjoyment of giving the enjoyment of the generosity, but also the enjoyment of consumption too.
And so both of those are what drive, um, me in the situation. But I think your answer was probably better. It really was. I mean, you know, it's cause, you know, it, it, it, the problem with spenders is, is that we're worshiping at the idol of stuff. if we're not careful.
And if you bow down to that idol, you will find it's a false idol. It does not deliver. Yep. It does not deliver.
satisfaction. And to swing on the other end of the spectrum, cause I talk about this in my book, know yourself, know your money, that that's the, that's the downside of the spender. And that's real, very, very real. But there is a downside of a saver where you become so control, freaked, tight-fisted, hoarding mentality, that there's almost this level of, of stress because you just have the money. I mean, like, like you, almost can't find the peace either, right?
Because you're.
holding on. sometimes. There's not a big enough savings to get peace. Yes. So it's kind of on.
that other end too. So, savers, we're not leaving you off the hook. Yeah. Well, I mean, it's, uh,
and Larry Burkett used to say, well, he said, there's a difference. The only difference between saving and hoarding is not the amount. The only difference is saving and hoarding is the intent. You know, why are you doing this? What's it for?
Cause hoarders are, I might need that someday. Savers are, I might need that someday. You know, and it's this idea that you're going to get from something money can't give you, which is contentment, is peace. There's not enough money to, you can't have a big enough pile of money to, uh, for it to serve you. You have to, I mean, for you to serve it, you have to, it has to serve you.
Yeah. And so if you're trying to get from stuff, spenders, joy and contentment, it's going to come up short. You eat enough lobster, it tastes like soap and I like lobster. But, uh, if you, if you're doing that, if you eat enough fine dining, it's no longer fine. Um, and, and so, you know, it doesn't matter.
And as soon as you get a really expensive car, you, you know, you, you, you get a real problem with where to park it. Cause some body will bounce a door off of it. Like it's a basketball, and then go, oh, did I do that?
Yes, you just did that. And then your whole enjoyment's wrapped up in like, oh my gosh,
this thing, like I'm worshiping this thing and ready to kill this person, you know? And it's just like, you know, but yeah, but I mean, that's all that is. That's the thing you can't, you can't, you just live in this world where this stuff, you're asking stuff or a pile of money, depending on whether you're a saver or spender, to do something for you, it can't do. That's right.
That was your point. It was a better point than mine. No, it's good. It's true. It's all true.
It's a good point. And, uh, God is not fond of idol worship. It comes up early and often in scripture. And that's what this comes down to. is where are you trying to get joy from?
Yeah. And, and so if you, uh, I like our friend, the minimalist title, it's, uh, use stuff, not people. Yes. You know, that's a good thing. And don't let stuff use you.
That's the deal. And when you got a $1,200 car payment, you're being used. Hello. This is the Ramsey show.
Rachel Cruz, Ramsey personality, is my co-host today. Thank you for joining us, America. We're so glad you're here. Hey, we are really excited about this upcoming total money makeover event weekend here on the Ramsey campus, uh, Rachel and I and George Campbell and Jade and Dr. John Deloney and Ken Coleman.
We're going to be doing a weekend long event, the total money makeover weekend. We want you to join us. We're going to help you get real, healthy money habits that will really change your relationship with money for good. We're covering all the things you want to know how to get out of debt, how to create a budget with every dollar, how to communicate with your spouse about finances, how to ease anxiety around money, how to invest and build the retirement of your dreams, how to increase your income so that you can do all of these things. What is the key things that, when woven together, give you a very high probability of not only getting a handle on this money stuff, but becoming wealthy.
We're going to take you all the way through it. This weekend long event is the ultimate motivator to get you fired up and excited to live the life you've always wanted. Uh, we're going to be doing a live taping of the hit podcast, smart money, happy hour with Rachel and George. We're going to have lots of Q and A's throughout the weekend and all the personalities, me, Rachel, Dr. Deloney, George Campbell, Jade Walsh, Ken Coleman.
Don't wait to get your tickets. This thing is not sold out yet and you can still get them. We would love to have you, uh, get them at ramseysolutions.com slash events. We'll start on Friday evening and go through Saturday evening. And, uh, if you get a little bit here, a little bit early, you can watch the show.
This show happened on the glass from one to four central time. Um, and that's free for anybody, but you can certainly make that a part of your plan to do the whole thing. Later on, I'll be speaking on Friday night. They'll be doing the smart money, happy hour on Friday night. And then all day, we're going to, if you bring a reluctant spouse, they won't be reluctant anymore.
When you leave, if you bring a friend that thinks you're crazy for doing this stuff, they will be just as crazy as you. When they leave, we're going to teach you how to do this stuff. And, man, when you get in that kind of an all immersive setting, you can't come away. It's like taking a cram course on all the stuff you should have known about money. It's.
going to be so fun. Yeah, it's gonna be great. These events are, they are, they're really fun. I mean, it's, it's being in a room with it. There's energy, there's people, there's learning.
There's me, you know, we bring hopefully lots of laughter and storytelling, and it's relaxed and it's going to be, it's going to be a really great event. It's life-changing. Yeah.
Ramseysolutions.
com slash events to get your tickets. We'll be doing this, of course, May,
uh, what is it? What's the dates on this thing? Uh, May 10th through 11th. 10th and 11th. Okay, that's it.
I should have been on here, I guess. Okay, cool. All right. Uh, let's go to Kenneth.
in Rochester. Hey, Kenneth, welcome to the Ramsey show. What's up? Hi Ramsey. How are you guys doing?
better than we deserve? What's up?
Uh, so I'm a relatively new listener. Um, but I've been watching your videos for the past couple of weeks now at work and I keep hearing you like take miniature, like jabs at SoFi. And so, as somebody who uses SoFi, I was wondering if there is a reason you don't like the app and if you would recommend an alternative. Well, SoFi is a bank. Yeah, I know.
You know that, right? Sorry, not app, bank. Okay. They're,
they're a bank and they sell, they sell debt. Okay. That's what they do. They're, they're, everything in the app is designed. amongst all this cheesy acting like they care about you, bullcrap, but they don't care about you.
They're trying to sell you debt. They're basically, you know, a bank of America in a, in a millennial clothing.
That's all they are. I mean, they're a bank. They sell credit card debt. They sell student loan debt. They sell mortgage debt.
They sell home equity loan debt. It's where they make all their money. They're a bank. They sell debt. You know that, right?
Yeah. I was just wondering if there.
was something more to it because, like from what I've listened to in your videos, it seems like basically every bank does that. So I was wondering if there was a reason why you usually call out.
SoFi specifically. I, I call out bank of America for third bank and Chase pretty regularly too, right? Cause they're large mega banks that don't have a soul and don't care, dad blamed thing about their customer. They're there to milk you. That's their whole job.
The only difference in SoFi and those other guys is those other guys just tell you, we're here to screw you. And SoFi puts it all in all this little sweet millennial nurturing clothing. And it's just a bunch of crap. It's so hypocritical. It's unbelievable.
And they have a great arena.
They, they, they, and they have an arena.
The SoFi, or stadium.
I always make fun of that. I just go SoFi, right? That's when you hear me picking on them, right? But, but I mean, it's, it's just, they are not your friend.
So if there was an alternative, Kenneth, it is more of the credit union, your local bank, a state, you know, wide bank, a regional bank.
Yeah.
Going more localized with your banking is, is a better way.
But they have. most of the local community banks and credit unions have at least a bit of, if not a really good soul. And they actually will treat you like a human being in the process.
If you have to go and sit down with somebody.
These guys, you know, they serve the stockholder. These mega banks, they get one thing. They need one thing from you, your money.
That's it. That's all they want. And so, and it's just, it is kind of,
you know, when you watch their ads, it's just like, oh, come on, really? I mean, but I guess people believe it.
Well, they're good. I mean, they, I mean, their, their marketing is.
Yeah. It makes you sound like that. They actually care. You know, it's a hoot, but they don't, I mean, I promise you, I'm not mad at them. They just is who they is.
They're just another mega bank. That's all they are. They're out of San Francisco, which is where Bank of America was born. And the Visa card, which was when it was born, was called the Bank America card, was the birth of Visa. That's the DNA of Visa.
It comes out of that same place. It's the same problem. So yeah, no, it's not, it's not, I don't, but I don't hate SoFi more than Bank of America. Our whole thing here, Kenneth, is we want what's good for you. We want somebody to, you know, and so when somebody is, you know, not taking care of the consumer, then there's a good chance, like timeshare people or something that I'm going to say something negative about.
For sure. Well, and, and I think there's a point there to, just to realize and be on guard, Kenneth, of how great we mentioned, like their marketing is, like their commercials and stuff. You're like, oh my gosh. And if they're that good on that side, they're going to be that much better on all their online products. You're going to be in it.
And you may not even realize, oh my gosh, I'm getting, you know, this year, this year, this year. And they're, and the ultimate, yeah, product is dead because they're making interest on you. I mean, all of it's how most banks are making all their money. And so they're just really good at it. So.
Yeah. Like they spend billions and billions of dollars trying to get your money.
Yep.
It's their thing, man. I mean, and so, and Wells Fargo, I mean, that's the other one we can drop in there. The level of fraud that company's gone through is unbelievable. So, I mean, but it's, you know, what you're looking for is a bank that their whole existence is not built on trying to milk you like yesterday's cow. I mean, that's really what you've got to get your head around.
And so, yeah, I do business with a bank or two or three,
but none of, but, but, you know, and none of them loan me money because I don't borrow money.
So it's not an option, but the, you know, just be careful when you're playing with snakes, because they bite. That's the whole point.
Yeah. And I think too, a question we're getting a lot is whether, yeah, where to, where to hold my, my checking. Right. And we talked about that. But then a lot of questions about high yield savings account, that's like one of the biggest right now, because the interest rates are so great.
So even online banks are another great option.
I'm fine with an online bank, but again, watch what you're doing. I mean, like, okay. Cause, are they using the high yield savings account as the loss leader to get you in there so they can milk you with credit cards and home equity loans? And are they going to just completely hammer you over and over, and over and over and over again? Because that is the business that they're in.
The margins in that stuff is? it's incredible. It's incredible the amount of money banks make. And so you just have to watch what's going on with that. And so, yeah, anybody that's going to take advantage, you know, that that's not doing a stellar job for the consumer, especially in a financial arena.
Yeah. I'm going to call them out by name and I have for 35 years. So I don't know that I'm, but I, I don't recall being harder on SoFi than I was those other banks, but other than I sneeze and say SoFi, because I think it's funny, but other than that,
I don't, you know, it's not. I hear Bank of America more from you than SoFi. I can't stand them. I know.
They're just awful. It's just, why would anybody do business with those people? This is the Ramsey show.
This is the Ramsey show where we prove every day that having common sense is like having a superpower in America today. Thanks for hanging out with us. Open phones at 888-825-5225.. Rachel Cruz, Ramsey, personality, bestselling. author.
My daughter's, my co-host. today. Oksana, is with us over in Charlotte, North Carolina. Hi, Oksana, how are you?
Hi, thank you so much for taking my call. It's an honor to speak with you.
You too. What's up?
Well, so, my husband and I, we have made some really dumb choices. And so I just wanted to get some of your wisdom. We bought a house. We moved to Charlotte like two years ago, bought a house that needed a lot of remodel before we could live in here. And so we didn't calculate what it would take, of course.
So we just were not very smart financially. We were not disciplined. And I'm just disgusted from our lack of discipline. So now we're on our every dollar budget. And I feel like we're finally getting control of our money.
So my question would be, would it be wise for us to sell our house in order to get out of debt? Or should we find a way to get rid of our expensive car and work our way out of debt that way?
Is the house renovation complete?
It's livable. We're living in it, but it is not complete.
Okay. And so if we don't sell it, you've got this need staring you in the face to continue to fix.
it up, right? Yes. We're slowly working on it, like every weekend, because my husband does construction. So it's already his like expertise. Yeah.
Okay.
Generally, when I find folks in that.
situation, by the time you're a couple of years into it, like you all are, you're sick of this house.
I'm sick of our debt. No, that wasn't what I'm talking about. That's different. That's a different subject. You're living in sawdust all the time and drywall does.
Yes, that is true. Yes.
This is our third house with renovations never finished. Yeah. And it's a perpetual state of.
construction. Yes. And most people, some people, are okay with that, but it's not unusual for me to talk to someone that's sick of living in those conditions, with no hope of it ending anytime soon.
Mm-hmm. Is that true of you or is that not true of you? It's okay. It's okay if you're.
different and you just love it. It's okay. No, I don't love it, but I do see a light at the end of this tunnel. finally. Where?
How far out? This house, probably by the end of summer, we should be done. Oh, okay. That's not bad. That's a reasonable light.
So I do see a light, but I have been very sick and tired of living in a construction home forever.
Yeah. So, regardless of the other part of the discussion, you guys need to write that down and he needs to hear you, because he's not sick of living in construction. He does it every day.
It doesn't bother him because guys will live under a bridge. I mean, we'll live anywhere, but ladies somehow need a little different set of situation, and that's reasonable to me.
Because I can live in a construction situation, but not with my wife.
Guys threshold is gross. Because she's not going to live there. Walk through a guy's college.
home and walk through a girl's college home, and there's your answer. You guys are disgusting.
So yeah, all of that to say, going forward, don't do this again, not because of the debt, but because it's not how you want to live. You've done it enough. Okay.
Yeah. That's just some advice. Okay. Now, how much debt do you have?
We have 137,000.
. And how much of that is the expensive car?
Yeah, it's 68,000.
. And that's his truck.
No, it's our everyday driving car. What is it?
It's a Toyota 4Runner. Oh, okay. It's your car. Okay.
Yeah. All right. Okay. And what's he drive? Oh, I'm sorry.
I said 68.
. It's actually 59.. The 68 is credit card. He drives just a van,
a work van. Okay. And the 68 was from the renovation, right?
Yeah. Renovation and random stuff like going out to eat.
Okay. All right. And you stopped all that. All right. So what's your household income?
Yes. Well, it dropped a lot since moving here because we had to start back up from scratch. And last year we made 47,000, but this year I'm projecting it's going to get a lot better because just in April, we're going to get about 10,000 in just a month.
What do you think you're going to make in 2024?
I'm going to guess like 70 or more at least.
Okay. All right. That sounds right. It sounds good. Okay.
And what do you owe on the house?
On the house, we owe 405, 405,000.
What's your mortgage payment every month?
Our mortgage is 2,400.
How have you been making a mortgage payment? Making 40 grand?
Credit cards.
Wait, what was the question?
How are you making a $2,000 mortgage payment making 40 grand?
Honestly, we've been borrowing from people and it's been really-.
I don't know if you can afford this house.
We're moving here.
You need to be making a take-home pay of $8,000 a month, which is 110,000 a year, to afford this house.
Really? So that, without talking about even the debt?
Not counting the debt.
Yeah.
Really?
Yeah. Your take-home pay, your house payment, should not be more than a fourth of your take-home pay. Otherwise, you put yourself in a pinch. And so do you see your way to $110,000 income from 70 in the following year?
What was his high point before you left the other place?
Like 120 a year.
Yeah. Okay. All right. Can he get back there in another year after this year?
I'm hoping. And it looks like it's going up. It's going up pretty fast all of a sudden. And he's a very hard worker. So I could be that person.
I'm questioning his work ethic. I'm questioning his math ability.
But I would sell the car.
I'd sell the car and I'd keep the house. And if your income does not go up to 120 by the end of 25, you need to sell the house.
Oh, okay. That makes sense.
Because, you know, but we need to get rid of the car now. And then you start chipping away at the credit card debt. As your income comes up, you'll be able to do that. But if you're living on a $70,000 income, then your take-home pay is going to be somewhere in the 55 range after taxes. And, you know, that's 4,500 bucks a month.
And almost 50% of that's going to a house payment then. And so it's very...
Do you work for upside, down? Like on the difference? How do we pay that difference?
You're upside down on the house?
Or the car?
No, no, no. On the car.
Oh, I got you.
What could you sell it for?
We can sell it for $55,000, probably.
Who said?
$50,000 to $55,000.
Who said?
Oh, I just looked on Facebook, like what people are selling it for.
Okay. Go to Kelly Blue Book, kbb.com and look at private sale. That is an accurate number.
Very little on Facebook, is true.
What about JD Power? I also got a quote there.
That would be okay. Did you look at a private sale on JD Power?
Yeah, it was $54,000.
Okay. That's what the car's worth. It's worth $55,000.. Okay. And you owe $59,000..
So you got to come up with $4,000 to sell it.
Yeah.
And replace the car.
I just don't know how to work with a bank. Oh, we just find the cash for it and just pay that?
Yeah. A cheap cash car, a hoopty, because you're broke people.
But you'll probably have to take out a small loan, Oksana, possibly to make the difference of that four grand and a little bit of money to replace the car.
Buy a $5,000 car. You need a $10,000 loan instead of a $59,000 loan. So yeah, that's going to move.
you in the right direction. But yeah, you need to get rid of the car. And then you need to say, if we don't get our income up to the 120 mark by the end of 2025, then we've got too much house.
And Oksana, hold on the line, and Austin and Taylor are going to pick up. And we want to give you guys Financial Peace University and EveryDollar Premium. Or you said you were doing EveryDollar, so if you have that, no worries. But watch nine lessons with you and your husband, and you guys get on the same page with this, because that's a really helpful course to get these basics down. And so you guys can really go full steam ahead.
When you have that knowledge and you start working and creating these new habits, it's going to be so helpful for you guys. It really is. I see the light at the end of the tunnel for you guys. I think you're on the cusp of change. It's right there.
You just need that little extra push. So we're cheering.
for you guys, though. Yeah, you are. You're going to make it. You're going to be okay.
And if the house is worth a lot more than $400, yeah, you might want to sell it. That'd be cool,
too.
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Rachel Cruz, Ramsey Personality, is my co-host today. Aaron is with us in Oklahoma City. Hi,
Aaron. How are you? I am very well, Dave. How are you and Miss Rachel doing? Better than we deserve, sir.
How can we help? Well, I have a question about. I have some money sitting in a savings account that I wanted to see your advice. But, as I told the screeners, I have a fairly complicated backstory, if you want to hear it. Sure.
It would affect the decision. Absolutely. So. I am a three-time cancer survivor, but also a current cancer patient. About two years ago, I was diagnosed with a stage four incurable and have been doing really well for two years.
But, you know, when they tell you that, you fear the end is near every day. So
my history is roughly in, let's see, I have a 16-year-old, a 14-year-old, and a 9-year-old. And when my two older ones were very young, four and one, we started to do the Dave Ramsey plan. Sorry, I'm nervous.
And we had a lot of debt at that time. But we paid off all of our credit cards, we paid off my wife's student loans, and a few other little things. And then, in 2012 is when I got, well, originally I had cancer in 2000, yeah, exactly 2000.. And then, in 2012,, I had another issue, had to have a surgery and remove part of my kidney and started to have to pay some medical stuff. And it kind of derailed where we were.
So for the next, I don't know, nine or so years, we lived on a budget. We still were prudent with our money, but we weren't really getting ahead. And then bought our own pharmacy, bought our own business, had it for 10 years. And in 2022, we sold it and I made a fairly decent amount of money. But then that was in March.
And then in the end of June is when I got diagnosed with this stage four terminal cancer. Okay. So my question is from the sale of that business, we put 320 or so in savings, had to use about 50,000 of that for medical expenses and to live.
And then, fairly recently, I have opened five, two nines for all three kids, but I've only put 10 in each, so a total of 30.
. So what I'm looking at is 240,000 a in, in cash savings. that I, my question is, do I, well, I want you to just kind of guide me, but my, in my head thought process was, uh, do I continue to invest in five to nine? Do I pay down on the house, um, in preparation to try to obviously help, uh, my wife and kids, if, and when?
sorry, that's a lot. And no, it's fine. What are you, what are you on your home?
Two 84.
Okay. And what's your household income today, since you sold the business?
Uh, well, I've since moved on and got a new job. Uh, we combine, we make about 150, 155 K.
Okay. All right. Well, I think the, um, together. So what's your wife make?
Uh, she brings home around 800 every month. I mean, she, she works part-time, takes full-time, taking care of the kids. Okay. All right. Do you have life insurance?
I do. I have a one point, roughly 1.3 in, in term. Okay. All right. So, um, and I have about 70 combined.
We have about 75 K.
and 401 K Roths. Good. So what I want to do, if I'm in your shoes, is put together a plan that works. If I live through this and a plan that works, if I don't. Okay.
Is that okay?
Uh, I believe. so. I think that's what you're asking. Cause I, I, yeah. Yes.
Because I do believe in miracles, and so I'm fine with either one, whatever God chooses. Okay. Yes, sir. Um,
and so, um, before we do that, uh, have you got your will done?
in the process? Okay. And your wife's will as well. Okay. In the process.
Yes. Okay. And that doesn't need to drag out. You need to do that now. Okay.
Very important to get that wrapped up, because that will, um, it, it will change things in the, uh, emotional state of both of you. to have had that done. It's a weird thing, but, um, it, it, it's, uh,
it gives you a level of peace. and get her a level of peace. Cause it's all dialed in that, that box is checked. You know what I'm saying? Yes, sir.
And it's, it's also like, uh, if you've got your spiritual life arranged, like, you know where you're going, right? Yes, sir. Okay. So.
you're walking with God, right? Amen. Yes, I am. Okay. All right.
So that's, you know, not one.
less thing to worry about. So, you know, to die, to die at this point is gain.
Yes. Those of us,
those of us that are people with nine year old kid, you are correct. I get it. I get it. I, I'm,
there's the spiritual understanding and the intellectual understanding and the emotional acceptance. I don't know if I could deal with it. I it's, I don't, I don't want to trade places with you, but I'm just talking through what I would do if I were in your shoes. I'd want to make sure I had these things arranged. That gives me a foundation to arrange the rest of it.
Does that make sense? Yep. Cause, what I, what I found, is I get, um, when I'm facing hard stuff, if I, if I address each of the buckets in the hard stuff, then I've done all I can do. And then the rest is the ride. And so, um, so the wheel, your spiritual walking condition, all of that.
And then we say, okay, you got one, if you pass away, she got 250,000 in the bank. She's got 1.1 million in insurance coming. So she's got, you know, a million three, and she writes a check and pays off the house that day, sits down with a smart investor pro. Oh, by the way, you could probably go ahead and do that now and let her and you develop a relationship with this, uh, an investment broker that understands what's going on. And okay.
If, if she walks in here with a paid for house and a million dollars, we're going to invest that. And she can live off the proceed or live off the income and creates and raise the kids and not have to work. Cause I think she can probably live on a hundred grand a year. Can she?
Yeah. Okay. All right. So, you know, if you lay that out now, that's the, if I die, scenario, the house has paid off. We invest in mutual funds with the balance of the insurance money.
And, um, and then we know that financially, the kids are going to eat and go to college. We're good. I would not do five, 29s with this money. Um, and now, if you live longer, um, you're going to need this liquidity to fight this. Uh, because you're, you're probably at a, uh, it sounds like you're in alternative treatment stage.
Is that right? No, no, no. I'm actually doing very well.
Um, I tell people I'm in really good shape. for the shape I'm in. Okay. I work. So you're still doing straight chemo.
I'm doing chemo every 21 days, 46 hours a week. If you need, if you need.
50,000 bucks to fly to X, Y, Z country to begin a, uh, a treatment that is beyond what your normal course of events are. here to take another, uh, another shot at this whole thing, you've got that money laying there and I want to keep it laying there for you. Okay. I also want to keep it laying there. If you guys decide you want to take like a family trip and create a memory, yeah, that'd be okay too.
That's a good use of this money.
I've, I've already paid for a trip at the end of May for us to go. do that. Um, good for you.
Okay. And so I want to give you permission to use some of this money that way. And then if, 10 years later, we're sitting here and that money's gone, but you're here,
I'm good with that. That's a good investment. Yeah. Okay. So kind of sit tight on it and sit
tight on it, but sit down and lay out your plan of, you know, what I'm doing is, if you're alive, I'm keeping this money liquid so we can take care of you and create the situation, best situation for the family. If you're gone, we've got this money plus the insurance money, pay off the house and invest. And we lay that out and put all those relationships in place to go there. So you've got a, you know, you've got a thing laid out. And then, if I'm you, that gives me peace, because I got a plan to fight through this.
And I think it's helpful to do that, man. I'm praying for you, Aaron. You're a strong dude. This is the Ramsey show.
Live from the headquarters of Ramsey solutions. It's the Ramsey show where we help people build wealth, do work that they love and create actual, amazing relationships. Rachel Cruz, Ramsey personality, number one, bestselling author and host of the smart money happy hour with our own, George Campbell on the Ramsey networks. And my daughter is my cohost today. Thanks for joining us, America.
The phone number is 888-825-5225.
. Brandon is with us. Brandon is in Evansville,
Indiana. Hi, Brandon. How are you? Hi, Dave and Rachel. Thanks for having me.
Pleasure to talk to both of you. You too. What's up? Yeah, I've got a question for you. This is a phone call.
compared to a lot of the ones you get to have. I've been listening to you since about 2007 or so. I'm debt free, except for the house. right now. That's all about the change.
I've got a significant windfall coming from work. That's life changing, essentially. And I'm trying to get my ducks in a row. I've met with my financial advisor. I've met with, I'm meeting with the CPA and the state.
attorney coming up here in the next two weeks. Wow. And so the real question becomes the buckets,
the percentages, how they change, the give, save and spend. And really kind of focusing on the giving portion, on like what percentages do you give for that? And how do you make it? put boundaries on that? so you don't find, you know, I don't think I have anybody like that that would do it, but just, you know, you don't know who's going to come out of the woodwork if you start giving money away.
And I just want to be able to help out people. And then on top of that, on the back end of it, just some of the other fun stuff we get to do with it as well.
Yeah. How much money are you getting, Brendan?
Yeah. It's in the seven figure range.
Over a million bucks?
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