How Are You Going To Change Your Life This Year?

Hey, Have you got the cobwebs blown out from the eggnog? yet? Are you back at it? Are you ready to rock and roll? is a game on?

is there a reset as our cycle? It needs to be broken. My buddy Jocko's got everybody resetting and we're breaking the cycle. So whatever it is, you got to do, there's got to be a thing and you got to do something different. you got to set these New Year's resolutions in process, make a habit happen, and One of the things that we want you to make a habit of is making sure you go ahead and order George's book.

It comes out next week. next week, George. That's crazy, yeah, so you can just, for a couple more days, get all of the pre-sale elements with it, and It's called breaking free from broke, the ultimate guide for more money and less stress. and it's a very millennial cover. But it's only.

it's not just for Millennials. That's right.

Dave. There's too many people out there and it's not about income. We're having people call in and make 200 grand.

I was one of my New Year's resolutions to not do that. Stop yakking. It's not. no, I can't stop yakking. it's like quiet out here if you do that, but the.

Setting and keeping goals, because the thing we have figured out that is unique at Ramsey, That the rest of the financial world still struggles with, basically, is that personal finance is 80% behavior. It's 20% head knowledge. You really fix the person in your mirror or you're just screwed.

I What you've been doing. you're gonna keep getting what you've been getting and Continuing to do the same thing over and over again, expecting a different result is the definition of insanity, And so it is time to break free from the cycle, and that's why we're doing this live stream called that as well, But the but. I want to talk about that in this next segment a minute, And but let's set that up a second, because I don't think any of you want to miss this next segment. It's really deep, Dialing into from a business perspective, treating your life like it's a business. How am I going to?

Set my revenue goals, my expense goals and my profit goals. You know, that's what you do for business. You set a budget, and How am I going to do that in my personal? Situation? because everybody's a little bit introspective this time of year, you know, I got an email from a friend of mine doing dry January, So everybody's gonna try to do something to be a little better version of themselves, right, and I think you should anyway.

and people talk about life balance, But I don't want to talk about it in that sense, because sometimes that's code. for I want to do, I just want to go over here and not do anything. It can be just like a balance. I want to. I want to kick back and call that life balance.

No, I want you to kick in Once you get it, once you get after it, and whatever the area is that you need to attack, I want you to do it, you know, wholesale and wide open. So, you know, basically, I'm not talking about dreaming. You know dreaming is good. Having a dream is a good thing. being a dreamer Has a negative.

no one wants their kid to marry a dreamer. Yeah. Hey, dad. I'm getting engaged and he's a dreamer. Oh crap, they're gonna live in the basement.

That's code for unemployed. That's code for I'm a, I don't do much, So you don't want to be a dreamer, but having vision is a good thing. I'm having a dream is a good thing, But just only the negative connotation is a dreamer means without action. and so you want to step into action and 41% of Americans make New Year's goals or Resolutions. only 8% end up keeping them.

I don't, I can't believe. it's that high, only 8%. I would, I guess, lower than that. But we're gonna talk about in this next segment exactly how to lay out for any area of your life, How to lay out a goal and How to make it work, and how to stick to it for the rest of this year. So if you've kind of had a oh, I lay, or maybe you're really game on well, I'm gonna give you a little bit a little fine-tuning for that next time, next segment here, and We're gonna lay it out in a way that you're not going to be confused at all about what it takes to win in any given area.

and Bottom line is it takes that your mirror, that person that you have to step up. Mm-hmm.

you're living on social insecurity. after working your whole life, You're gonna let the government, which is well known for its ability to handle money, take care of you. That's a dumb plan. That that's a definition of mediocrity, minus about six degrees. so you don't want to do that.

but that's what's gonna happen. if you're on coast mode, you can coast through the society and have a Relatively decent lifestyle high stress. Mm-hmm, but relatively decent lifestyle instead. I would rather just turn on the turn up the heat and let's go get it.

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George Campbell, Ramsey personality, is my co-host today. Welcome to the Ramsey show, folks. We're glad you're here. This is a show that actually helps. you want to win at your life.

We started years ago talking about your money. We still talk about money a lot, but we talk about every area of your life. We were talking before the break there about dreams. dreams with work clothes on are called goals, And you better put some work clothes on if you want to get something done.

The. you know, it's funny to me that every time I'm lucky it's usually around the time I'm wearing work clothes My luck tends to happen the more I work. It's just this honest, funny correlation. You know, I get more luck the more I work, and that's pretty simple. the way this is Dreams that put their work clothes on are called goals.

now, a lot of people talk about setting goals, But let me tell you, if you don't set the goal correctly, You have zero chance almost of hitting it, and it has to have. really, there are five components of a properly set goal, and if you dodge any of them, you lower your Probability of hitting it almost to zero. the first three for sure. If you don't do the first three, you're just done. There's not.

there's almost no chance. You're gonna hit it. So I want to lose weight, I want to make more money. I want to.

Have a better career. I want to graduate from college, I want to whatever, so that the first two things a goal has to be is You're. if you say I want to lose weight. You're not going to.

That's not enough. that's a dream. It's fuzzy it. the first two things a goal has to be specific and it has to be measurable. So a goal losing weight is a measurable event.

earning more money is a measurable event. I want to get out of debt. That's a measurable event. Now. We've got to get very, very specific how much?

okay, that it's measurable, but it's not specific. Okay, how much do you want to lose? Oh, 30 pounds. Okay, Now, we measurable and specific. now, then, the question is do you want to lose 30 pounds over 10 years, and how many times do you?

want to lose 30 pounds?

That's an important piece of the puzzle. Yeah, so, you know, I want to earn more money. great, how much I want to earn $100,000 this year. Okay. How soon do you want to do it?

now, when you put a time limit on it? And you know what the amount is, Automatically your brain starts doing sixth grade math how much per month? long division, right? So if I want to lose 30 pounds, when I want to do it over three months, I say instantly everyone said that's 10 pounds a month. Instantly you're going.

some of you're even going further and saying that's two and a half pounds a week. And then you start automatically saying what has to be true. That's not true now, and so I'm gonna raise my water intake, lower the bread and sugar intake and.

Increase my aerobic activity to 30 minutes a day. These are magical things that you do. if you're losing weight, right, if I want to earn more money, okay, Well, are you're on commission? Do you need to make more sales? Right?

That's right. How many more calls do you need to make to make the sales? I had a guy tell me one time he said I'm gonna earn a hundred is working for us. He said I'm gonna earn $100,000 this year and I said, no, you're not. He said what do you mean?

You're not gonna pay me. I said no, you. I read the sales reports. You don't make enough calls to make enough sales on Average, with our average order value on that call to make a hundred thousand dollars. And so how many you know, a hundred thousand dollars is eighty, three hundred thirty three dollars a month.

That's twenty one hundred dollars a week. What are you going to do to earn? $2,100 a week? and then you figure that out. then, and what's it take to do that?

and you're willing to do those steps. Boom, you've done the long division. You've done the math, right? You know, a lot of times people call in, they go. Well, you know, I've got $75,000 in debt.

Okay. Well, what do you make? Well, I make $60,000.. Okay, if you pay off $25,000 a year, that's three years. So instantly we're doing.

we're setting goals with you when you call in here for you, But also inspiring you by showing you that you know, If you did roll up your sleeves, earn a little bit more money and lived on less than you make, you could pay off $25,000 a year. That's $2,000 a month. you that for three years you paid off $75,000. you start to do the math and Then the math gives you hope, because you can really do 30 pounds in three months. That's not an unreasonable loss for most people.

now. You shouldn't do that. You would know here I would float away into the ether if I did that just one of my legs would be smaller. But you know, that's all but the. but you know, other people are right.

So everybody's got a different thing, but 30 pounds is.

Once you write it out, there's something that happens. the Bible says write the vision and make it plain. It says it in Habakkuk, one of the Old Testament books write the vision and make it plain. So when you write down, I am going to lose 30 pounds 10 pounds a month, 30 pounds in 90 days, 10 pounds a month, 2 and a half pounds a week. Then you step up on the scales and you're up a pound.

You got, you got a baseline, you go All right. Now I got three and a half pounds. I'm screwed. You know, I really got to get out of the cookies here. I mean you just you start to make the adjustments of what you've got to do.

put up the Christmas cookies. There's enough already. I'm talking to myself now, but the arsenal, but the but. I mean I'm gonna look, I'm gonna pay off this debt. if I'm gonna pay off $2,000 a month and you look up and you've only paid off a thousand, well, You're off goal.

and when you write out your debt, snowball, when you write out your budget, which is your monthly goals For money, then you've got it in writing. if you want to earn more, put it in writing and then start talking about what you're Gonna do to cause that to happen, because something has to be different for you to be different. Hello, if you want to be out of debt in your in-debt, something has to be different. So what's gonna be different? Well, I'm selling some crap.

I mean we're amputating the Tahoe here. That that boat that's been sitting out there in the yard that we act like we use and we don't use is gone. I mean, you know, yes, I have a $9,000 riding lawnmower. I'm an idiot. So I'm selling it.

Yes, okay, I mean you're an idiot if you have $9,000 riding lawnmower and and You owe $9,000 on it. Now, if you, if you're a billionaire and you have a $9,000 running and you pay cash and you pay cash, okay, That's an idiotic. but thing to do? people do that. So sacrifices must be made.

Well, something has to change and Generally it feel change always feels like a sacrifice. It may not be as sacrificial as you think it may be. you just look up and you go. Oh, there's $50,000 in my savings account. I owe $35,000 on this stupid butt student loan, and apparently Joe Biden is not coming to the rescue.

Hello, are you just now waking up to that? And so I mean he can't even fight my anyway, but uh, Yeah, so, oh my gosh. Are you just now waking? So if the change could simply be, you're gonna reduce your savings account by $35,000. ready, set, go, And it's still gonna hurt a little bit.

tap out, done, just like that. and The last one is the goals have to be your goal. Mm-hmm.

So, hello, you know. Oh, people are always. people always got opinions about everybody else's stuff, and you know, My dad always want me to be a preacher. I'm not going to your church unless you're talking about God, your dad, God, the father. But other than that, I don't you know.

for people whose earthly father called them into the ministries, They don't make good pastors. Hello, and so, you know, I always, you know, but you need to say So, my wife wants me to lose 30 pounds. That's it. Is that a trick question? No, it's not a trick question.

It won't work until I want to lose 30.. I can't. I could want to do it to please her. Yeah, really? That's really horrible.

That's? that's blissified right there. I mean my wife wants me to earn more money. No, it won't work. My mama always wanted me to.

I don't care what your mama wants. It's time being grown up. If you're 25, your problems are now your problems. You can't blame them on your parents anymore. You're like an adult walking around in like a large body and stuff, and you need to freaking act like it So you can't.

the days of blaming mama and daddy are done. So. that expired exactly now. seven areas We recommend you set goals for, certainly, financial goals, intellectual goals. You're gonna read a book this year.

How many nonfiction books you're gonna read this year? There's a direct correlation between your income and the level of nonfiction books you read. Read a book, family goals How you gonna break that out? spiritual goals, Prayer time, Bible reading, going to church. physical goals.

We talked about losing weight, exercising, run a marathon, career goals, Social goals, you should set goals in these areas and they should be specific. They should be measurable, They should be in writing and they need to be your goals. Not you living someone else's life. Otherwise, it doesn't work. This is the Ramsey show.

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George Campbell, Ramsey personality, is my co-host today. Alyssa is with us in Naples, Florida. Hi, Alyssa, welcome to the Ramsey show.

so I just got remarried in October and my husband and I, you know, after the wedding, really sat down and took a Good look at our combined finances good, and we definitely made a lot of Debt choices independently and now coming together trying to figure out how we can Tackle that, hopefully, you know, for the new year, planning on, you know, having a kid I already have a nine-year-old daughter and Trying to get those You know figured out so that we're not constantly worried about savings and being able to retire.

So student debt, we've got about a hundred and forty thousand.

I'm the mental health therapist. Okay, so I've, I've got, I've got about 90.

he, he has about 40, and that was, you know, from the His parents pushing him to go to college. and so he has debt with no real What other debt? Nothing really to show for it. car payments About 50,000 total in our cars, you know 60 on your cars. Okay.

Mm-hmm. And then we've got a mortgage. That's got about.

240,000.

Okay, so.

where we go? How much margin can we create every month to throw at that smallest debt? That's all. we're focused No saving, no investing. We're not eating out.

We've got to make some sacrifices here. How quickly could you pay off, you know, could you throw three, four or five thousand dollars a month at the smallest debt?

you have a lifestyle. That's absolutely asinine.

When you say I need to take care of her.

Yeah, so it's time. It's time for a penchant for action, some urgency here and say, okay, the more dramatic We, more dramatic we change our life, the more dramatically we change our life, the more Sacrificially we change our life, The the faster this is going to turn around and we're gonna have a pile of cash, won't be out of debt. Yes, the more you just goof around with it, because here's the deal. you guys, just you guys have no idea where this money goes Right, and so we're gonna get you on a detailed written budget. So here's the thing.

What kind of mental, mental, health, professional, what kind of work do you do?

not working, you know this zero activity, sitting in a dark room, adding your to your depression. So you need sunlight and vitamin D and activity. So you need to get an exercise and be in sunlight helps with depression. Am I wrong?

Yeah, so you sent you send somebody because you're in a, but they're sitting in the dark room. They don't see it. So what I want to do here is I just want you to say, okay, if I hired you, you're a smart person. if I hired you, Even though you're not a financial professional, It's because the stuff we're dealing with here is sixth grade math. If I hired you to look at this and say you come in objectively and you look at this family, They make a hundred and thirty hundred forty thousand dollars a year.

They have three thousand dollars to their name, They have sixty thousand dollars in car debt and they have student loans have been hanging around so long. They think they're a pet. They feel stuck. You could objectively look in from the outside, like you do every day, and look at this the way George and I are looking at Right now going. these people need to tighten things up.

They need to sell a car or two. They're not going on vacation because they're broke, because they're in. if they're sick and tired of being sick and tired, you'll change Your right process and if, because you, if you look at this objectively from the outside, I can see in a three minute radio conversation with you, I I can see forty or fifty thousand dollars a year here that you could throw at this and you'd be out of debt in No time, but it's gonna mean you're driving different cars. You're not going on vacation, You're not eating out and it's not gonna be comfortable for a while until you set some new grooves in your brain.

I want a new car. I deserve. I mean, I have a degree. I have a master's degree. I deserve a good car.

No, you don't, you're freaking bro.

Mm-hmm. You didn't call me up. make it $30,000 with these numbers. Thank God, You call me up making a hundred and thirty thousand dollars these numbers. Yeah, so you can do this, and the correlation is very simple the deeper you cut, The more sacrificial and weird you are.

and it's gonna feel very strange for the first 90 days, And then it'll get to be a normal rhythm. But the deeper you cut, the faster you're out. by the way, that works for all of you. the deeper you cut, the faster you're out. and I'm up rip the band-aid off, guy.

Yeah, this, pull it off one hair at a time thing. No, thank you.

It's a stupid house, you know, it's just stuff And you can get you some more stuff, but you can't get your life back. This is the Ramsey show.

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George Campbell, Ramsey personality, is my co-host today. Luke is in Tuscaloosa, Alabama, Where they are crying this morning. Hey, Luke, welcome to the Ramsey show.

Probably in the next year and a half or so.

yeah, so Ideal is, you guys pile up as much cash as you can and somewhere around a year after the wedding you're purchasing Okay, that's ideal. The reason that's ideal is it gives you enough time of being married folk to make a better decision together, Because you'll make a better decision after you've been married a year than you will one after you've been married one week. Okay, and you know, because you will have learned to work together on other things as well during that year. That first year of marriage is very interesting. So, um, you know, you just take that time, get to know her.

She gets to know you. and the way we always joke about it Is we say it takes about a year to know how far away from your mother-in-law to buy? Yeah, you know, that's about. that's about the measure. so, um, but that it you know, there's some truth in that joke.

that's why it's funny, but the Yeah, that's, that's what we look at. and and but that means you're gonna be like 26 years old, which is okay with me. It also means you're probably gonna have $100,000.. Yes, sir, which is okay with me. Love it.

Does she have any debt?

Okay, okay,

You're sitting there, but I feel like I could use it elsewhere, you know finance Some kind of account with a financial manager of some sort. I don't think I'd get fancy.

Hey, John. Welcome to the Ramsey show. Hey there. Thank you so much for having me better than how great man. How can we help?

Yeah, at what rate do they forgive it?

What about your wife? What about your wife? How long to the 17-5?.

Okay, good.

Yes, and yeah that I. So always, if even if there's a forgiveness program we go along with, we say set the money aside in savings, Which keeps, takes away the golden handcuffs. That's the big thing you want to do there. So good question, man, Good question. You sound like you're a good dad, a good husband.

proud of you. Keep it up. Happy New Year. 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. George Campbell, Ramsey personality, is my co-host today. open phones at triple eight, eight, two, five, five, Two, two, five. thank you for joining us and Happy New Year to you. Dalton is with us in Indianapolis to start this hour.

Hi Dalton, welcome to the Ramsey show.

However, the problem is, is there the surrender charge? So I have about. I've been invested since last November and I have about like $1,300 invested. but if I were to try, I can't transfer it into anything else and if I try to leave it, I'd be left with $400 and The surrender charge isn't good away and feel like another 10 years and I've had to keep investing. So I'm not sure what to do about this.

Yeah, and yeah, make note that this guy screwed you, Mm-hmm. putting you into this product. I mean put you in a product that the only way you avoid surrender charges is 10 years. Mm-hmm. Oh, man, how old are you?

What do you do for a living? Dalton? I'm a diesel technician. Okay.

you know, it's staying in. it would have just been worse.

I doubt. as a diesel mechanic, You might. you might tell some other decent mechanics not to get new business with this particular guy. But yeah, I'm sorry, Dalton, it, but the actual, Actual, proper, correct thing to do is just if you have a hole in your pocket, sew up the hole, don't keep putting money in it.

They're not a financial advisor.

He's got no value. He's got no cash value. right now, after a year of paying in 150, Just what we've been telling you for years. They keep it all. once you get past that, you finally build up a little bit of Horrible pocket change.

this poor returns, and you got two thousand dollars in there. You keep doing it for your whole stupid life, and that would be a stupid life. and you got 50,000 bucks in there, you know, you get your 50,000 bucks out tax-free, Or borrow it. Well, guess what? if you go the bank and borrow $10,000, it's tax-free.

Borrowed money never is taxed. It's dumber in hell, but it's not tax. It sounds cooler. Oh, my god, free in front of it. That's unbelievable.

Yeah, of course, it's tax-free, you idiot, Not you, thank you, not you, Dalton, but they know her. yeah, Dalton, but the Guy, I'm a tax-free wealth strategist. Well, of course you are the way you get your money out. you borrow your own stupid money out of this policy and you pay them Interest, of course, it's tax-free. Borrowed money has never got taxes on it.

That's dumb. Don't poke holes in their genius strategy, Dave. It's a cheat. There's a bunch of GMO. tax-free wealth.

This is the. I have. a hot take for every investor a hot day. go down the bank and borrow 15,000 bucks. That's tax-free.

Dave did it before, it was cool. Now it's trendy on tick-tock. That's why it still makes me mad. Oh my goodness.

But the business is set up to the industry, set up to milk your your sphere of influence. So they put you in there as a greenie. They milk your sphere of influence, your natural, and they tell you go after your friends and young people and college students. serve your natural Market, oh gosh, with a tax-free wealth strategy. Shoot, brilliant.

Just shoot me. This is the Ramsey show.

Hey, what's up?

Hey, he is. he was a direct operation. so he was right under the owner for a luxury landscaping and hardscaping Company that works in Buckhead. They work on commercial homes and all kinds of stuff. So the business owner Basically has lost his behind and is dissolving everything, and we kind of have the opportunity to Not purchase the business from him.

Get the equipment, purchase the equipment for him from him, what he for, what he owes on it, and then He will give us his client book freely and he's been very open, like wants to. so he's closing up shop. He's closing shop and there's a lot of money left to be made on the book scheduled and he's washing his hands of it. So my question is like how? what's a lot of going out?

Um, Right now they probably have two to three months on the books and I think there's about $250,000 on the table. give or take on, the table being gross revenues, not counting expenses.

You gotta know his margins.

in it. He owes about 30.

We still owe 11,000 on his truck, his personal truck.

Would he give you the client book anyways?

Yes, he did. He just gave up. Why did he lose his butt if there's all this money laying there? You know, I from an outsider's perspective? Honestly, I don't know, but they all drive Porsches.

They have a big old house in Buckhead and it just looks he's selling his house. He's found bankruptcy. It's just All not good.

So, for instance, those voluntary repossessions your husband takes the equipment over there, turns it in. That dealer is not going to turn around and sell it to your husband the next day. that $60,000 tractor for 30,000.

Emotional impulsive, yeah, And it's probably gonna file soon because he's in freakout mode.

But they would undo an individual transaction that benefited Your husband versus the creditor. Okay, you see what I'm saying. Yeah, so here's our strategy. Okay. I mean I got, I got caught, I got down in the weeds there for a minute.

But yeah, the book of business you sound like you are excited about it is your husband. Yes, okay. You think he can take it and run it. So in that case, what I would do is the first thing you need to do is do an autopsy, and you really do need To know what the crap went wrong. Right, why this book of business is not worth hanging around for?

Okay, what, what is wrong? What is this guy doing? you doing cocaine? I mean, what's the deal? what happened here?

You know, I got to know if it's the business model that's broken. You don't need the book of business of a broken business model, Right. No, thank you. yes, I'll take the book of business if I can figure out what caused it. and if the book of business is clean and I can still cut the deals with those guys and they can, I can still make that profit.

I'll step into that and go do it, and then I would buy one or maybe two of these pieces of equipment with cash. Okay, if you can get them for 30,000 and they're worth 60.

So that's more cash than we have. so that was you have. no, you only have 30, you've got 40 and 8 and 16, right, Right. Yes. What do you guys?

what do you make?

All right, you get one piece of equipment, you pay off the truck and the rest of it's your starter emergency fund.

I So just take your time, buy your equipment. take that which which of the two thirty Thousand-dollar worth 60s is the best deal and the best piece of equipment? take that one. If the dealer will tell it, sell it to you for 30. when you take it over there and turn it in on his former boss's behalf.

Okay, if they won't, if they try to jack it up Above the loan, then no, don't do it and do not buy it from your former boss. buy it from the dealer after repo. Okay, because the bankruptcy court will come take it from you.

You can look it up. You'll see what I'm talking about. But yeah, I would buy, I'd spend 30 on this and I'd pay off my truck and I'd have a little bit of cash. And let's get going. Let's get going, resurrect this business.

That sounds fun. She's got her head around it. Oh, absolutely. That's what was giving me a lot of hope. I have hope for this.

Yeah, this is the Ramsey show.

George Campbell, Ramsey personality, is my co-host today. open phones at triple eight, eight, two, five, five, two, two, five. Sabrina is in San Antonio. Hi, Sabrina. Welcome to the Ramsey show.

Thank you. How are you better than I deserve? What's up?

It's around 22,000. he is thinking we should upgrade to a bigger vehicle. So this value of the new vehicle would be 25,000, so about 3,000 more. And so I just wanted to see your opinion. I refuse to go to a lot because I don't, you know, want to make a bad decision.

So we have about six months left projected until we pay it off, and he just thinks we should Trade it right now and we're going to pay it off regardless this year. So that's kind of his mindset. I just want to get your opinion.

why do you need to upgrade?

His Reasoning, or I you know, the big reason would just be more room. We have four kids and So there's really no trunk space. so

Yes, does he?

Yes, he does so. part of the problem is we are not on baby step to you are mm-hmm? he's not.

Buy an $18,000 one Instead of a $25,000 one, and that would get you out of debt faster and you'd have a bigger car.

Correct.

Yeah, and why didn't you bring that in? and then we'd had something to talk about, because I guess it's out of debt faster and We get a larger car. but instead You're scaring the crap out of me that I'm gonna have to struggle with you The rest of our lives on this money issue. This is really scary for me and you ought to bring that up to him that way. Okay, because you don't really.

you know, you laughed, but you don't really want to be married to a little boy. You want to be married to a man that's walking along beside you?

Yeah, shared goals, and it's not cute That you're the mommy. It's not fun for you. It's why I ask how old you guys are, because I was a little bit thinking you were a lot younger, honestly, Like you were 22 or something, and he still hadn't grown up, you know. But um, but maybe he's 29. and but you know, no, I would not go along with this.

I would not go to the dealership. I will not sign this. I don't believe in it. You're scaring the crap out of me, but the car is not the problem. The problem is that you would bring this in here, knowing how that's gonna make me feel That you disrespect me on that level.

If I'm you, that's how I'm feeling. Yeah, I'd be like, you know, let's pretend Sharon Ramsey came in and suggested we borrowed money. Can you imagine how that would go?

You know, I mean it's I'd get pay-per-view tickets to see. yeah, that would be a hillbilly knockdown. Oh my gosh, Unbelievable, that'd be a one of those fights, right? But I mean obviously we we've had those fights long ago when I'm married. we got past them.

But I want you. I'm really concerned that you use this opportunity that to get the two of you on the same page, more than I'm concerned about the car transaction.

You know how it makes you scared That you know, he's gonna mess up everything after you guys have worked so hard to get it cleaned up. Mm-hmm. Yeah, you know, it's just. at least he didn't come in and go. I want to borrow $60,000 and buy a brand new something, you know, he didn't say that.

So he's still thinking he's never lining, still think he's gonna get paid off in a year. But but you know, that means he's kind of like a two, you know, on a scale of one to ten, right? He's not. he didn't go to it. He didn't take it all away.

We'll make the problem slightly worse. Yeah, Yeah, but but but the big problem is is that that's a slippery slope. I mean once you stick your toe in that water, the vortex will suck you in, you know, It's just like it's hard. to go on the lot of a car dealer and not leave without a car is dangerous. Yeah, because they're fabulous cars and they're even a sale, even if the salesman sucks.

the cars are fabulous.

It was within. it was within reach. I'm just saying, well, some of them have automatics that do that. now, automatic moms. Is that a thing?

I'm kidding. That's a feature moms would pay for. I would pay for it as a grandparent. But there you go, just zap you in the seat if you're misbehaving. just a little zip, zip, zip.

There you go.

The reason for bringing that up is to point out That he didn't bother to go that direction. It was going. if he had gone that direction. I'd actually may be gone with him. You know, say sure.

Yeah, you want to move up in car and down in debt? That's a plan. up in size, but not in value. Yep, Actually, move down in value, going down in debt, but up in size. Yeah, I'm for that.

It's like people call up and say, you know, we owe $12,000 on our car. It's worth $12,000 Or $10,000 or whatever, or you know? But it's a. you know, we have a, you know A tiny little Honda or something, and we've got like two kids on the way. What are we gonna do?

Well, you can move to a $12,000 Van. it's a break-even scenario, but don't go further in debt. people use all these events to justify more further in debt.

I want my truck.

That's Dave's grandkid right there. This is the Ramsey shit.

Yep. Just 10 minutes. You've got this. pick up financial peace, kids at Ramsey solutions comm slash store. That's Ramsey solutions comm slash store.

George Campbell, Ramsey personality is my co-host today. lots of things happening here at the first of the year. You know, when you get stuck In a rut, it's kind of like being stuck in an orbit. The gravitational pull of stupid is Amazingly powerful. it will hold you in that orbit.

Is that an Einstein quote? I just made it up. It's a new Ramsey theorem Ramsey theorem of stupid gravitational pull, but not yeah, I've been stuck in an orbit on something You know, it's just your habit is? you got a dumb habit. You got a habit of not paying attention to your money as an example.

And if, and so when we're doing this thing on this huge, it's already over 200,000 people registered for now Livestream on the 11th of January. It's completely free And you got to go to Ramsey solutions. comm and register for it. It's called breaking the cycle. What we're doing is we're breaking out of the orbit of stupid.

you got to break the cycle and sometimes it feels like, oh, It's a family cycle. Sometimes people in my world, in the Christian race. You call it a generational curse, right? Well, it's not a generational curse. once you're 26,, it's just you're being stupid.

it's in our DNA to be broke today. It's not in your DNA to be broke. It's in your behavior that's causing you to be broke, and you've glorified it by blaming it on your family. No, you can't do that anymore. You got to break the cycle.

gonna break the cycle, and the way you break the cycle is with new emotions and new knowledge and new ways of viewing things, a new paradigm, and all of that comes from Intersecting with someone that can slingshot you out of that orbit. break the cycle, and that's what we're gonna do. It's completely free Livestream on January the 11th, and we do not want you to miss it. It's.

This is cool. We haven't done this before.

So that's pretty cool. must be present to win. apparently that even digitally. Yeah, you got to register to win at Ramsey. solutions, comm, slash, break the cycle, the whole thing's free.

Dr John Deloney, Rachel Cruz, George Camel, Jade Warshaw, Navigating money, anxiety, bad money habits to keep you stuck. practical money tips that actually work. We're gonna help you break free of the orbit of stupid.

Thank you. Thank you. Thank you, and you help us. Ramsey solutions, comm, slash, break the cycle, January, the 11th and Man, we'd love to have you view it with us. Samuel is in Madison, Wisconsin.

Hi, Samuel, welcome to the Ramsey show. How are you doing better than I deserve? What's up?

No, I'm living by myself, yes, but I'm still paying their part of their. you're paying for the what Their Wi-Fi, the phone bill, some of the propane. How are they eating if your dad's not working? My dad's living off his Roth IRA at 50 years old.

have any brothers or sister? Yeah, but I don't really talk to them because they do other things.

your dad's got to make some moves and I'm I'm so sorry you're facing this on what a horrible thing to have to go through when you're 18.. 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. George Campbell, Ramsey personality, is my co-host today as we answer your questions about your life and your money. Open phones at triple, eight, eight, two, five, five, two, two, five. Ray starts off this hour in Oklahoma City. Hi Ray.

Welcome to the Ramsey show.

Some major issues Started about three years ago, I guess, when I medically had to leave my job And it took me about a year and a half to even get Social Security disability going on. I am retired. I am retired military And I'm drawing military disability also, but I've had to borrow from some very high-tech, high-interest loan places in order to survive.

For the longest time and now I can't get out of the cycle because I can't get a consolidation loan to pay off all of them and Refigure my cash flow.

Okay, so.

Military retirement. I bring home about nineteen hundred a month.

Social Security. I bring home about twenty four hundred and.

Disability is thirty nine.

You know, I just my back is completely shot. I have massive trauma in my back and my knees and The military is basically deemed me unemployable Because of physical restraints. I'm not supposed to pick up more than 10 to 15 pounds at a time. Yeah.

And she really doesn't make a whole lot because she just got started with the company.

Doesn't sound like a good deal. Oh, nope. I'm pretty much having to cover everything.

how much debt do you have?

Cars, credit cards and.

Is still got about 22 on it. Okay, and.

If I were to pay them out completely.

So I think the challenge is is that the two of you need to do two things. one is, you need to sit down together And get on a detailed, written budget. We're gonna put you into Financial Peace University and into every dollar, the world's best budgeting app. But I'm gonna pay for it as my gift to you to say. Thank you for your service.

Okay?

Okay, and but you make $100,000 a year, man. Yep. Okay, you can't work because of your physical condition. So you have zero need for a $22,000 car.

That's the life's car, you know, it's gone. shouldn't make any money. we're selling it. We're getting a cheap car. What are you doing?

What do you got?

all this stuff has happened to you and the trauma Of this whole situation is caused you guys to get paralyzed and you're just not dealing with it. But you've got the math to deal with it. The math is there.

$4,000 $4,000 a month and you're debt-free in a year if you keep the car.

But that's what I'm saying. So do I take.

Those interest rates. There's not enough, not enough debt here to cause that. Hang on. We're gonna get you signed up for everything as our gift.

All right, let's cut to the chase. it's easy to get discouraged about crazy house prices and interest rates, But when you have the right real estate agent to help you buy and sell the right way, You'll have confidence to make smart decisions. Ramsey trusted agents aren't just experts who guide you through buying or selling. There's someone you can trust to have your back from the first call to closing day. find a Ramsey trusted agent near you at Ramsey solutions.com agent.

Ramsey solutions.com agent.

George Camel Ramsey personality, is my co-host today. Thank you for joining us. America. open phones at triple-8 8 to 5 5 225. The Ramsey show question of the day is brought to you by neighborly, your hub for home services.

There are a lot of things you need to remember when the weather gets cold. Thankfully, neighborly has a free winter maintenance checklist that can help save you time and hassle. Check it out at neighborly.com slash Ramsey. great company, neighborly.com

So the question is is any of this debt in your name? It sounds like no, so let's assume that there's no debt in the child's name. parent passes away. They have credit card debt, failed business debt. My understanding is that this would come from their estate before anything gets paid out in the form of inheritance.

It does not pass to you. now. security owns a house That's worth a hundred thousand dollars and he has twenty thousand dollars in credit card debt and he dies. The credit card company will get paid out of the value of the house before you get a distribution. So the house is sold $100,000.

20,000 goes a credit card company. You're gonna get 80 if you're the only heir. that would be the way it works. So you're right. the estate would stand good for the debts, but when you die, what you own Stands good for what you owe.

debt does not pass Generationally in the United States, but it does come out of you. What would have been your inheritance if there is an inheritance now?

they'll have some one of these debt buyers that buys stuff at pennies on the dollar and they'll buy, you know, a bazillion dollars worth of debt. and then they just start calling everybody in sight and They call you up and they go, your debt, your dad, You owe this because your dad, and just see if they can intimidate you into paying it. You know your dad died and they try to get you to pay it for your dad, you know, and You owe this and you're like, oh, we're gonna put it on your credit. They'll threaten you and lie and all that. Some of them are really really unscrupulous.

There was a real movement by the Federal Trade Commission a few years ago to shut a bunch of that down. There's, you know. another batch of things they find in the debt is, let's say, someone filed bankruptcy and the debt was discharged in bankruptcy Court, so you don't know it anymore, Legally at all, it was clear. They'll still try to collect it. just intimidate you.

It's well, I'm of you know, it didn't? it didn't. your bankruptcy didn't clear this. So we won't put it on your credit and we're gonna sue you and we're gonna see your wages, and they start yelling at you on the phone. and people, you know, people that are, You know, I don't know that that aren't mean and nasty like me, though They'll cave and give them a bunch of money, you know, and so, yeah, it happens all the time.

But, but it's not, it's, that's an illegal, unethical practice. So don't fall for it. Yeah, don't fall for it. But the point is not. you know, Lauren, you don't owe money.

if your mom and dad die with a bunch of debt, You don't owe their debt, but it will come out of the sale of their assets before you get an inheritance. That's the thing to remember. Ravi is in Austin, Texas. Hi, Ravi. How are you?

Good. How are you doing Dave? Better than I deserve. What's up?

I earn around hundred fifty thousand dollars from a job. I have a wife and two sons and I have two hundred thousand dollars in a savings account. I Cannot figure out if I should enlist in a real estate and then create a passive income, or are there other better options? that I should go for I?

And it's not. the one of the keys to building wealth long term is not Keep a two hundred or three hundred fifty thousand dollar mortgage while I go do real estate. that I learned on tick-tock.

Gotcha, that didn't come up. that never comes up. when we interview millionaires, What always comes up is we dump money in our 401k, our Roth IRAs, and we paid off our house. And I've got eight hundred thousand bucks in my 401k and my house is worth six hundred thousand dollars and it's paid for. and I'm fifty, Three years old.

That's a typical millionaire. And so eight hundred and six hundred is 1.4 million dollar net worth, right? That's, that's a typical millionaire. So we're always going to lead you first to be debt-free, which you've done. Congratulations.

Great job. Second, to have an emergency fund, that baby step. three of three to six months of expenses. and then exactly what George told you four, five and six. It's 15% of your income, which is just out of your hundred and fifty income.

going into retirement, say Starting kids, college funds. You can do that out of your 150 as well, which leaves the 200. I'm assuming you have other money other than just the 200, and I'm going to pay off my home as fast as I possibly can, then, and With you, I think, in your situation.

and so That's why I know the math works, as I actually lived it and walked in it.

you take like 3,000 bucks a month. That's $36,000 a year going in. How come past that blows up? I mean, you're talking about five, six, seven years. It just blows up.

It's crazy. So yeah, but we don't think about investing three, four thousand dollars a month.

It's so important. I remember listening to your show when I was 12 years old on the radio, and Yeah, it's now I'm 25.. So I wasn't really taught much about finances growing up. I kind of have to teach myself, worked at the bank for years since I was 18, and so got married young Right, for six years. We're finally on the same page of like hey, finances are really important and we're realizing we kind of suck at Managing it.

So, um, we've gotten ourselves into a little bit of debt. I am feeling overwhelmed. I feel like I'm kind of in over my head with it. I'm just wondering where to start. we've got about 30,000 in auto loans, 7,000 in or more, like 10,000 credit card debt, but that's it.

We don't have a house. We're trying to save up for one, trying to get a savings. I just want to know where to start. how much in savings?

Ah, we've got about 500 right now. Oh, nothing. Yeah, and how much is your household income?

It is between 75 and 95 a year now, so we're in a good place to start doing that. How old are you guys? 25, okay. Oh, you said that earlier? I'm sorry.

Okay. Yeah, no, you're okay, All right.