Live Like No One Else So You Can Live Like No One Else!
2023-12-22 01:58:53
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Live from the headquarters of Ramsey Solutions, this is The Ramsey Show, where we help you win in your life, specifically in your money, in your work, and in your relationships. I'm Ken Coleman. Jade Warshaw, my friend and colleague, joins me this hour. We're here to answer your questions. She'll be taking your money questions.
I'll chime in. I'll be taking any questions about personal growth in your work, and do you want to get ahead, and how to get ahead in managing this money journey alongside of that, and Jade will weigh in on that as well. The phone number for you to jump in is 888-825-5225, 888-825-5225.. I'll also say this, I'll say a little bit more as we get closer to it, but a special treat today, and the clue is the word treat. That's all I can say right now.
Well, I could say more, I just don't want to.
Don't give it away, Ken.
I'm not going to. Give it away, give it away, give it away now. I was thinking that. Were you thinking that?
I was like, Anthony Kiedis, told us to give it away, but don't give it away.
Love that. Let's get to the phones. Levi is up first in Tampa, Florida. Levi, how can we help?
Levi.
Uh-oh.
I hit the button, I promise. I hit line one, so we're not getting Levi. This happens from time to time.
That's all right. We can keep rolling.
I think James is going to help us out. There we go.
Yeah, we hear you, Levi.
Levi, what's going on?
Okay. Hi, everyone. So, my name is Levi. I am in $200,000 of student loan debt. Whoa.
Yikes. I am an attorney. I make $115K a year. Take-home income is about $6,200.. I also DJ and create content on the side.
My overall take-home income per month is about $6,800.. Here's my question. I want to refinance my student loans to get a lower interest payment. Right now, my interest is 9%. If I refinance right now, my interest rate will be somewhere between 7% and 7.5%.
That's great.
Should I refinance right now, or should I wait for interest rates to lower?
How long have you been out of school?
So I graduated from law school in 2020, which was during COVID, and I never had to pay any student loans, and now they've just kicked back in, and I've made a couple of payments.
Um, listen, and they're all private?
They're all federal.
Oh, so, you're consolidating them at 7.5%. You're not necessarily refinancing them?
Answers like that, that's exactly why I called it a ranty show.
I don't really know. No, it's okay. With federal loans, you can consolidate them down, and they'll group them all together, and they'll put them at one interest rate, which is not always, for some people, it's not always the best move, but it sounds like in your case, it is the best move. The thing that you need to realize with that is you get one shot to do it, and so I think that's why you're kind of worried of, should I do it now, or should I wait?
That's accurate.
Okay. Um, with your, well, let me ask you a couple more questions before we get to that. Do you have any other debt?
Um, well, I've been listening to the ranty show for about three months, and over the last three months, I paid off all my credit card debt.
Sweet. Awesome. Anything else? Cars?
Um, my car is 100% paid off as of about six months ago. Um, I, right now I pay, and you're probably not going to like this, I pay $1250 in rent, but I'm ready for an upgrade. Sorry. And, and-.
Who are you apologizing to? Not me.
Well, I mean, you know, right now, the, the, the debt snowball, is $200k, and if I raise, if I raise my rent, it's going to be, you know, $2,000-ish. But I'm sorry, I don't have an in-unit washer dryer. Like, I'm ready for an upgrade here. Okay.
That's your choice. if you choose to do that. I mean, if you go to $2,000, you're still not, um,
I mean, you're, you're going over 25%, if you do that, of your take-home pay.
Right. Okay. So- Is that like, uh, is 25% like the metric that I should-.
When we talk about buying a house, it definitely is. And in your case, with Baby Step 2, I would highly, I would still consider that kind of a, a framework. I like where you're at now, and I want you to move up in hotel, not in hotel, my goodness. I want you to move up in apartment. Is there any, any way that you can save it until after you pay off this debt?
Because here's the thing, that extra $800 or $750, that we're talking about months of freedom there. And you've got to really weigh the opportunity cost of whether you take that extra $750 and get your end unit, because it feels like that's kind of a celebratory thing for you, or kind of like a status thing, like, listen, I deserve this. I've been working hard. I've been in law school. Give me the, give me the apartment I want.
And I understand that. But man, oh man, having that extra $750 over the course of time, knocking out these student loans, that is a big, big deal. And I do want you to weigh that heavily. Have you done the math out on that?
You're absolutely right. I have done the math out on that and it's not pretty.
What about a roommate?
Not willing.
Yeah. If he's ready to do that, he doesn't want to live with anybody.
You got to make a decision. And I just think this is a bad idea. I think it's a bad idea for you to increase your expenses right now, when it's really not that big of a lifestyle issue. I get why you feel, the way you feel, but now we're always going to give you the advice that says, sacrifice, sacrifice, sacrifice, because we want you to get free sooner, as Jade said. So we're not going to be in favor of that.
How many, how much of the, so? you're bringing home 6,800, how much of that is going towards your debt at this point?
So right now I put about $2,000 per month to student loans.
Okay.
And that's well above, and I picked like an income-driven repayment plan. This is before I became obsessed with the Dave Ramsey show on YouTube. And now it's like, my payments are 600 something dollars, which is laughable. So I've been overpaying my payments.
What kind of law do you practice?
Workers' comp.
What's your, what's the ladder look like over the next one to three years, financially?
When you say ladder, like how much more can I make over the next one to three years?
Yeah. With a lot of, I want to know how you can increase this income, because that's what needs to happen. We need to be busting it.
Well, staying at the same thing where I currently am, which I'm planning on doing, I could probably go up to probably 130, 140 over the next three years.
Okay. No freelance opportunities?
Not really. The firm that I'm at, I would need to disclose and get approval for a lot.
You understand why I'm asking that, right? $200,000, very doable with your ability, but you're going to have to increase your income. This is going to be a long journey.
Yes and no. Yes, you do need to increase your income, but I kind of think, 2000,, are you single? Yes.
I'm single.
I think 2000,. if you're making 6,800 a month, you have no other payments besides this. I think 2000 a month is a little wimpy.
Okay. What would not be wimpy?
I think that there's areas in your budget that you can cut more. I sense that because I'm looking at the numbers. I also sense that because you're creeping up on wanting another apartment already. I just sense that there's things in your life that you're like, listen, I've earned this. I want to spend my money on this.
That's true, but again, you're weighing that opportunity cost. I think you can squeak another $500,000 or $1,000 out of this budget. I think you need to do what Ken did and you need to get your income up. I don't want this taking you eight years to pay off. That's far too long.
I want this done in four years and you can do that.
Yeah. Good stuff. Thanks for the call. Glad you joined our community. Stay with us.
You will get through this. All right. We're just getting started, folks. Merry Christmas to one and all. Don't move.
More of your calls coming up. This is the Ramsey show.
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Welcome back to the Ramsey show. Thrilled to have you with us. I'm Ken Coleman. Jade Warshaw joins me and we are here for you, America. 888-825-5225 is the phone number.
888-825-5225.. Taking your questions about money, and I'm in the chair today. So let's take any questions about personal and professional growth, decisions about maybe starting a business. When do I go from side hustle to full-time? Hey, I'm stuck.
I need a promotion. I'm not getting any kind of work-related questions because those are always money-related and we'd love to take some of those as well. Jump in. 888-825-5225 and if you want to stay with us, it's kind of like, well, we're getting, this is like the second to the last Friday of the year. Am I right?
That feels right. And you're kind of just like, I think I'll hang out today. You don't want to miss next hour. Jade has got another special treat. I get to sample it.
There's another clue.
You're really hyping this up, Ken.
Well, you know, I even broke out the cardigan today. The new cardigan sweater.
You look like a shtickle of bourbon.
A shtickle? That feels right. I don't know what that is, but that doesn't offend me at all. It feels right. Let's get to Steven in Houston, Texas.
Steven, how can we help?
Oh, hi guys. Thanks for taking the call.
You bet. What's going on?
So I'm looking for some advice. We just, me and my wife just recently got on the Ramsey plan. We're on baby step two and I'm a full-time high school teacher.
And I've taken a part-time EMS job when I'm out on vacation and on the weekends and stuff. And I do some food delivery to try to just pack as much money as we can to this debt. Wow. But I'm afraid that my wife's getting overwhelmed by it.
Because you're not home.
What's going on, man? You're pretty emotional right now. What are you feeling?
I just, you know, it's like a baby Christian. You know, I don't want to, I don't want to be so intense that she's like, oh, you know, you won't let us do anything and this and that.
What's going on? I don't know how to have that conversation. Well, take us to what's going on with you guys relationally. What are you feeling from her? What are you hearing from her that you would call us about this?
Well, for instance, she works full-time at home. We have two kids. And so when I'm like, all right, I'm going to go, I have a goal to make $50 a day with food delivery. Five days a week. So that's an extra thousand dollars a month.
And then on Saturdays, I go work this EMS job, which are 24-hour shifts. And that's extra $350 each day. I do that. And then, but she's still like, well, you think you can stay home tonight so that, you know, we can clean the house and get ready for our Christmas brunch that's coming up.
And, and, um, I don't, I, I, I, I, I, I, I'm like, well, you think that maybe you, you know, uh, you could pick up a little bit of that so that we can continue to stay on plan.
Okay. I see what's going on here. Yeah.
And then I get kind of negative feedback. Well, you know, you will. So now we just, you're not here to help around in the house and stuff like that.
Let me ask a couple of clarifying questions. When you said she works full-time, does she work full-time as a stay-at-home mom, or does she work full-time at a job that is, work from home?
Yeah. A job that works from home.
Okay. But the kids are also there too. So that kind of falls on her as well.
Right. When, when they're not in school, like right now, we're on Christmas break.
I totally get that. Okay. And then can you tell me, how much debt do you guys have? Because I'm trying to understand. I mean, I get the intensity, but I want to, I just want to get a bigger picture.
Okay. So we have about $26,000 in cars and credit cards.
Break it down. What's the cars and what's the credit cards?
My wife's car is almost paid off. It's got $3,000 left. My truck's got $11,000 left. And then we have about $15,000 in credit cards. Okay.
And then, um, another 10,000 around. that, that I owe to my, uh, to my mother-in-law. So what's the payoff date?
If you didn't miss any night scheduled, you've got this thing figured out. If you stay on this pace, what do you anticipate the day would be? How far in the future before you pay off this debt?
I, I, I, I told my wife we can do it in six months, not our house. I have a house.
Sure, sure, sure, sure. So, let me just tell you, hey, so, Steven, so, man to man here. Uh, I love this intensity, but, uh, there, this is a six month window. It'd be different if this were a six year and you guys had to be that intense. I love the intensity.
I think you have to downshift in moments like this. When your wife is giving you the signal, you read it, man. You've been married long enough, you know, uh, going after it. But, but if there's a holiday party in the situation you gave us, I think, the answer, and this is not criticism you called. So I'm going to tell you, as a dude, just my take here.
in that situation, uh, you take the night off from gazelle intensity and you jump in and help her out. I think if you guys were in much bigger debt and it were far more intense, I think there's a conversation to be had to say, Hey, babe, I gotta do this. We gotta be all in. But I think, given the situation, I don't think this is three or four nights a week. I think you sit down with her and go, Hey, I'm doing this to sprint, hang in there.
But if you need, you need that kind of emergency situation, raise your hand and I'm going to be more sensitive next time. And I'll jump in. That would be my take in this situation.
What's your guys' combined income yearly? You mentioned all the things you're doing, but what does that amount to?
So that's recent, the, uh, the EMS job and stuff. But so right now we make about 110 gross together, just at our regular jobs. And I'm looking to bring in, uh, I got a plan to bring in 3000 extra a month. So, uh, about 30,000 more, so maybe about 140,000 if I stay on this track. Okay.
So you're basically saying our normal budget stays the same and I'm side hustling to pay off. I get it.
That caused a little trouble too, because then we stripped the budget way down as well. We cut off some streaming services.
Well, that's what I'm saying. It almost needs to be one or the other, because you've got $39,000 of debt and you just outlined a plan where you're side hustling to bring in an extra almost 40,000.. So if the side hustling alone is paying off the debt, then, like, I'm trying to find a way where you guys can balance this out a little bit, a little bit more. Does that make sense? Because if you're going to bring in $40,000 a year, and this is a full year play, as opposed to you just trying to like, to Ken's point, just squeak this thing out in six months.
I do think that, you know, if you can get her on board, fine. But, like Ken said, you know, if she's having these moments where she's throwing a flag on the play, like, listen, we haven't seen you. We don't, we don't even remember what you look like, dude. Like you do have to, you have to cool out for a minute. Right.
And I think that, um, I think there's room for you to take the pedal off the metal just a little bit. Yeah.
Right. Great. Because I don't want to burn her out. So I guess that's what I was looking for to say.
Your instincts are right.
Yeah. She's like a baby bird. Sometimes you got to get them to keep coming to you.
Steven, I think your instincts are right. You called us. We're validating your instincts. Your instincts are right. You're pushing really hard and it's affecting her.
And you don't want to lose her in the midst of this cause. The cause is not as important as her and the kids.
Right, because it's not. At that point, what's the point?
Especially during this season.
That's right. But listen, my man, she seems to be all in. We heard no signs of her not being all in. It's just, hey, we got a holiday party and I'm swamped with the kids and I'm exhausted. You know, I also think it's important for you to show some appreciation to her for her being all in.
And you know what? Maybe take a night coming up in the next couple of weeks and totally surprise her and say, hey, babe, here's a little money that I've been making on the side hustle. Go out with some of your best girlfriends. Have a nice night. I'll take care of the kids.
All right, Ken Coleman.
You know, I mean, what do you think, Jade? I think that's a teamwork play.
That's a teamwork play.
Because she's, listen, I'm just, I'm honoring all the moms out there, because my wife has done both. Stacey has fluctuated between being a work out of the home and a work in the home. Notice, I say work in the home because that's a lot of work. And there are times where it's really good, guys, for us to just acknowledge the partner in the situation and say, hey, you know what? I appreciate you being on board.
And what it is is when you're going at that pace, you have to, ahead of time, say what the milestones are going to be. Yes. When we pay off this car, we get this. When we do this. And it sounds like they don't have those milestones in place.
And that is so important.
You need, like a cheat day. You know, these big time athletes. That's right. Like I follow the rock. No big deal.
You know, I like the rock.
Listen, those cheat meals.
Have you seen the man's cheat meals? It's pretty fantastic. So even one of the greatest athletes, actors, you know, get after guys in the world, you got those down days. I think mama needs a little time off every once in a while. And you can fund that.
And then we keep going with great momentum. Steven, you're a good man and a good husband. This is The Ramsey Show.
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Welcome back to The Ramsey Show. I'm Ken Coleman. Jade Warshaw joins me in studio. We're here for you, America. 888-825-5225..
888-825-5225.. Taking your money, questions, your work, questions. It's a good time to be thinking about next year. And we are here for you. The question of the day is brought to you by Neighborly, your hub for home services.
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Today's question comes from Sarah in Arizona. Can I donate money in Baby Step 2?? My husband and I disagree about this. I made my husband do FPU and agreed to the principles before I would even accept his proposal. Wow.
Dang, son. We just got married in September and we are officially on a budget with combined finances. We have a good income, around $400,000 combined, but our debt snowball is more of a debt wrecking ball right now. $448,000 in total debt. I have always given $100 a month to charities and I put these as line items on our combined budget.
My husband says giving is for Baby Step 7 and this money should come out of my discretionary spending. if I want to keep giving. I say it is not $100 a month that is going to derail us from reaching our goals. I'm still tweaking the budget, but right now I have our individual allowance at $200 each month. Can you please be the arbitrator of this debate?
Oh, I need to get you one of those black robes, and you're Judge Jade right now. I need to give you a gavel too. What say you, Judge Jade?
I see a lot in this, so I'm just going to pick it apart. This woman is strong. I do not want to mess with Sarah. Sarah is coming in hot.
Here's what I'm going to say about giving, and then I'm going to go back through this thing. I do think it's important to give. I think giving is an important practice that you do all the time, all the time, even in Baby Step 2.. Now, pause for a second. I'm going to tell you my perspective, and you have the ability, Sarah, to make it make sense for you, depending on your belief system.
I'm a Christian person. The way I believe is you just give 10% off the top all the time and you give that 10% to your local church. That's what I believe. That's a spiritual practice for me, but it's also a financial practice and generosity for me. Even while Sam and I were in Baby Step 2, with almost the same amount of debt as what you have, Sarah, but with a smaller income, we continued to give not $100 a month, but 10% of whatever we brought in.
For me, the reasoning behind that is not just, like I said, a spiritual one, but it is a practice and just good financial principle. Because at the end of the day, and this is for everybody listening, when you have an open hand, the money is sitting in your hand, money can easily get out, but it also means money can easily get back in. That's a wonderful thing to know. It's just a blessing. We say it all the time.
Giving is the most fun you can have with money. I agree with you in principle. Yes, you should continue to give. Matter of fact, up it. If you're making $400,000 a year and you want to give 10%, well, there you have it.
What your husband is talking about, Baby Step 7, he says giving is for Baby Step 7.. That really is, if you want to give above and beyond, right? If you're like, listen, we've been at this lower mark of giving for a while. We're ready to increase. There's some dreams that I have.
Yeah, Baby Step 7 is the time to do that.
Um, I, I, I might just, and it might just be the way it's written. Maybe just, just ease up a little, Sarah, just maybe, maybe pull back a little bit. You're very, you're very strong. And all of these things kind of sound like I told my husband we're doing this and I told him we're doing this, and you're kind of like dragging him by the collar. She got him like, like the collar on the wall.
You know what I'm saying? And I think that might make him feel a little, he might be feeling some type of way, and maybe this is a way where he feels like he can get a little control back. because, you know, sometimes relationships get to be a bit of a power struggle. And so this feels more about a power struggle than it really does about giving. I'm not going to lie.
Just reading it. I may be wrong. Ken Coleman?
I think you're right. I think the language implies her attitude towards him. And, uh, you don't want to take too many liberties with just a one-sided email. Um, but yeah, it feels like this is not a partnership. This is a dictatorship, is what it feels like.
And so I think you're right. The budget needs to be adapted to include the giving that you're talking about, based on what we teach. So I agree with you lockstep, uh, man, I get it, though. You know, money creates enough tension, us telling the spouse how things are going to be. That doesn't lend itself to long-term financial partnership.
It doesn't. And I mean, Sarah, hear me loud and clear. I, I have a Mr. T personality as well. Okay.
Like I pity the fool. I pity the fool.
Like I come in hot, like Sam Warshaw, he could tell you right now I come in hot. And so when I read that, I recognized that. Yeah. And so, like we, sometimes we have to pull back a little bit. We, we stomp in the room.
You know what I'm saying? We just chill out.
Whew. And guys, even if she does stomp in the room, never say that she stomps in the room. There's a little bit of advice to all the dudes out there.
We float.
Man, I'm already getting nervous. I feel like I'm on eggshells already. I'm ready to move on. By the way, uh, the illustrious, uh, incomparable Sam Warshaw is in the lobby. So he gave me a look.
He kind of leaned over and gave me a look when you said that. That's all he did. I don't know what that means. I'll find out afterwards. Oh boy.
That's good stuff. All right. Brittany's up next in New Orleans, or, as I like to say, Nolans. What's going on, Brittany?
Hi Ken, how are you guys?
We're having a blast. What are you up to?
Working with that snowball. All right. I have a question.
Hey, before you ask the question, I got to know when you live in the New Orleans area, is it a thing? Does everybody have beignets around Christmas? Is that a Christmas morning thing?
Uh, I prefer sweet potato. Oh, okay. Around this time of the year, personally.
I just want you to know, I order every year a box of, uh, of the dough from, uh, Cafe Dumont and we do, uh, beignets Christmas morning.
Wow.
Yeah, that's my, that's my treat. Anyway. Sorry. I got distracted. Brittany, what can we answer for you?
Yeah, they are good.
Okay. So I'm working on my debt snowball and the next debt I have coming up is a personal loan for $5,000.. Now I was previously married before. And so this is a loan that I owe with my ex-husband. When we split, we did agree to split it 50-50 and we've been paying the monthly payment, um, since we split.
Now it's the next thing in my debt snowball. So obviously I'm trying to figure out what to do, because he does not have his half of the 5,000 to pay it off currently.
Who do you owe the money to?
Um, one name.
Okay. So it's okay.
A lending service.
Okay. It's a personal loan from a bank, not like. grandma loaned you money. Okay. Um, has, is he good for it?
Like, has, tell me what kind of guy this is. Is this the type of guy who's going to pay it?
He's been paying it monthly. He's late sometimes, but he always gives it, um, but you know,
Is it in both of your names?
For the most part. Yes, it's in both of our names.
I'd probably, I'd probably pay my half and set it aside. And then, by the time I get done with my debt snowball, if he still hasn't paid it, I'm going to pay it and move on.
Okay. That's what I was thinking. Should I just pay the whole thing?
Now, here's the thing. If you start to see, because I, here's the thing you pay half of this and there's still a monthly payment due. So you need to monitor this. And if you see, listen, he's not making his payment. This interest is racking up and it's going, the bill is going up.
It's not going down. You need to, you need to reach over and just pay it off immediately. But if you see, okay, he's making his payment, you know, this, this is working because you know, $2,500 is a lot of money. I might change my mind. Hold on a second.
How much more do you have in your debt snowball?
Uh, if I sell my car, which I plan on doing, I'll have about 40K left.
40K left. Um, and how much is the car worth?
The car is like 20..
All right. If you don't sell that car, because I think that's a big part of this, pay your half and watch it. All right. Watch it every month, because I don't want this going back. If you see even one month that he's late, reach over and pay it off.
All right.
Thank you for the call, Brittany. When you said reach, I thought you said reach over and cuff him right in the back of the.
head, but she could try that.
She could try that too. Hey, Brittany, you're doing awesome. You're on your way and nobody's going to stop you. Thanks for the call. Great advice, Jade.
All right. Don't move, folks. We got to pay a couple bills and we'll be right back. This is The Ramsey Show.
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Welcome back, America. You've joined the conversation about your life, specifically your money, your work, and your relationships. We want you winning in all three of those areas. That's why we do this show, The Ramsey Show. I'm Ken Coleman.
Jade Warshaw joins me. 888-825-5225 is the phone number to jump in. 888-825-5225.. Let's go to Toronto, Canada. Max joins us there.
Max, how can we help?
Hey, Ken. Thank you so much for having me on. Can you hear me okay?
Yes, sir. What's going on?
Awesome. Yeah. I'll just give you the question, and then I guess we can dive into it. I'm 23,, graduated university two years ago now, and thinking of moving on from my first full-time job and taking a shot as an entrepreneur doing some social media and YouTube content.
What do you make in your full-time job?
Right now, I'm at $80,000.. I also have a side hustle that I'm doing about $5,000 a month.
Oh, wow. What's the side? hustle?
Yeah. So I'm partnering with this company called Odds Jam, and it's a little bit weird, but kind of with a lot of the new sportsbooks and gambling companies coming to Canada. There's a lot of opportunities for different promotions and things like that. So, using the software, I've been able to have success and average about $5,000 a month the past year.
Wow. And so where does the YouTube social media venture that you mentioned, is this related at all to the work you just described? It's the side hustle, or is it completely separate?
No, it would be completely separate. My game plan would be to continue to do the side hustle and then leave the full-time job and then be able to fully dive into doing 60, 80 hours a week on the YouTube social.
Do you have any debt right now?
Nope, no debt.
No debt at all. You're single?
I have a girlfriend of three years.
Girlfriend of three years. What kind of content are you planning to do, social media and YouTube?
Yeah, so it would be kind of in the self-improvement, self-development space, specifically geared to a target audience of young men, probably within the age of 14, 22.. A lot of it would kind of be either fitness-related, mental health, building, self-discipline, confidence, and stuff with how to have success with women, as well as business.
Have you done any of that content before, or is this just an idea?
So I haven't done any of that content before, but I am publishing a 300-page self-improvement book in January. So that's going to be coming in the next month, and all of the things I talk about kind of in the book are going to be directly related to the content I'm doing on the channel.
All right, well, then, based on what you've told me, I think what I would do if I were you is I would release that book. Proud of you for that. I think that's great. I would start doing this content now. I would not go all in.
To me, it just is not worth taking a $20,000 pay cut. I love that. you're making 80K in a day job that is allowing you enough bandwidth mentally to be making 60K. You're on pace to make $60,000 a year in a side hustle. So I wouldn't just immediately walk away from the 80K and to go all in on the social, because I don't think that's the right strategy.
I think what I would do is I would come up with a strategy to test this. What's a legitimate test? And I'm making this up. Please don't let me hang this on you. And I want Jade to weigh in here in a second on this too.
But I would be thinking social and YouTube. So is it? three videos a week? Is it one? How many posts a day?
Get? whatever you think is a legitimate test. Not be all in all. Because, remember, starting a social media side hustle should have the same mindset as starting a regular brick and mortar business. Meaning I'm not going to go all in on a bunch of inventory, buy a building.
I'm going to lease. I'm going to do a small inventory. I'm going to test this stuff. So to me, I would stay put doing exactly what you're doing now. And what I would do is I would commit 20 hours a week to it.
15, whatever you can do. Let's go full blown. test. Because you could still hustle right now, put out enough content to test it and see, is there anything there? Then what I would like to see is social media, this new side.
hustle, the personal development stuff. I'd like to see that getting to a point where you can see it, generating 20,000 so that we replace the 80K from the day job. There's just zero reason for you to risk right now.
Also, that book, when did you say the book comes out?
The launch is planned for the end of January of this year.
Okay.
I'm just asking, is this something you've done on your own? You found a publisher and you did this? Is there some sort of deal that you got because of something you did? There's a little bit more hoopla around it. Can you tell us the seriousness of this?
I wrote the entire book myself and then I worked with another publishing company in Canada, which kind of helped me with cover design, going through the manuscript, going over everything with a fine tooth comb. It's up to you to market it. Yeah, exactly.
I think to Ken's point, that book is going to be a big test for you too, because you're going to look and see, okay, is it selling? Are people interested in this topic? What's the feedback? On Amazon, you'll be able to read those reviews and see everything that's going on with that book. That's one of the ways you'll test it.
Ken and I can both tell you from social media, before I came to Ramsey, I started a channel and it is hard work.
People like to look at influencers and go, oh, you're an influencer. How hard could it be? I'm like, no, no, no, no, no, no, no. It's hard work. It's very hard to get people, I mean, it's a constant competition to make sure your content is what people want to see.
Do you plan on having somebody to help you with it, or is the first step just you doing it on your own?
Yeah, so kind of my thought process with, and I know that this is someone you guys got on the show, Alex Ramosi, and kind of something that he says is a lot of people, they kind of have one foot in the door, one foot out the door, and that's kind of why I wanted to quit and go full-time in it, because I feel something Ken talks about as well is I don't necessarily have the career capital in terms of editing video skills and stuff, but I feel that the skill I do have is great communication. I believe in myself that if I commit to this for a three-year time window, let's say, and I'm doing 68 hours a week on it, I believe I can be successful. It's more so just having that time that I don't really have, working nine to five. And regarding what Ken said earlier, 20 hours a week, something like that, no, I do think that I can do that, but a big part of it is also fitness, right? So I'm in the gym probably two, three hours a day.
So on top of my nine to five and the side hustle, I don't really have a lot of free time in the day per se. So that's why I'm at a bit of a crossroads, if that makes sense.
Well, let me address, because I've interviewed Alex and know Alex, and so I want to address what you said. I think it's correct what he has said, but there's also scaling involved, and there's a season when we're testing, and then there's a season when we scale. And what I heard you say is quit everything and go 80 hours a week to be able to do this. Did I hear that correctly?
I would still do the side hustle that I'm doing.
So how many hours a week do you have to put into that? that's making you 5k a month?
Probably two hours a day, every day.
Okay. Well, listen, I'm not going to tell you not to do it. I told you what I would do, and I would eventually ramp up. I'm with Alex that at some point you've got to go all in. I just don't think you're ready to go all in yet.
Yeah. How quickly... Okay. Let's say you're replacing the 5,000 a month that you're making from your $80,000 job that you're netting. How quickly do you think, by posting on social media and YouTube, that you'll recoup that in your mind?
How quickly do you think?
Yeah, I think if I do two years. How long? If I do two years, that'd probably be 800 videos. I think I could have a good audience by then.
It's very speculative.
It's very spec... I'm just saying it's very speculative, because, again, this is from somebody who's doing what you're saying to do. I did it for two and a half years, and I had just started making money. When I say money, I mean a little bit of money, not anything close to bank. Just a little bit of money, having some opportunities to influence for people.
Max, she's really good. She's really winsome. I'm just going to be honest with you. People like looking at her and listening to what she says. She's dynamic, and it took her that long.
She's a big time performer. I would just rather you take my advice, not because I think I'm right.
And you'll get there.
But because I think it's not going to hurt you. You've got to try this. I know you don't have a lot of time to be able to crank out, but start working that gym time into video time. If you're in the gym for two hours, then figure out a way to film it. You've got some extra money.
I'd hire somebody to be following you around. You know, that's what Alex does. Alex has got a guy that's full-time, following you around, shooting stuff and editing. I'd rather you keep the day job, invest some of that money in somebody filming you while you're at the gym for two hours. But test it.
And then, when we know it's really working, then we scale it. I just don't want you to go backwards financially, Max, but I love your heart and your desire. So thanks for the call. Jade Warshall, good hour. Thank you, my friend.
To our fearless leader, old captain, our captain, James Childs, and the fearless crew in the booth. Thank you, guys. This is The Ramsey Show.
Live from the headquarters of Ramsey Solutions, this is The Ramsey Show. It's where we help you win in your life, specifically with your money, in your work, and through your relationships. 888-825-5225.. That's the number to jump in. Jade Warshall joins me.
I'm Ken Coleman, and we are thrilled to be with you to answer your questions. We're for you. Let us coach you up today. 888-825-5225.. Jade, specializing in the money questions.
I'll specialize in any work-related questions. We'll tag team any question that comes in, and we believe that your best days are ahead. 888-825-5225.. Special segment coming up later this hour. Jade, I want you to tease it.
however, you choose to tease it, because these are my favorite segments of all segments, and I don't care if Dave's listening, George, Rachel, John, I don't care. This is why I love co-hosting The Ramsey Show. Is that a setup?
Okay, Ken. You didn't have to fire shots, but yes.
Why? That's fantastic.
That's great. This is great. Yeah, we're talking about, it's the holidays, right? Christmas is coming up this weekend, and then you got New Year's, and hosting parties, Ken. There's always these expectations.
How can we save money and have a great contribution in the midst of that?
So we are going to have a test, a taste-off.
That's right.
I'm going to be subjecting myself to your tips. That's right. And then I am just supposed to comment, and this is my favorite thing to do. That's right. There will be beverages.
Can you tell the difference between a $10 bottle of wine and a $30 bottle of wine?
We're about to find out. In this sweater today, you would think I would know, but I don't know. I don't know. I don't know. I don't know if it's all surface or if I have a palate that is good enough.
So we'll see. So you don't want to miss it. And you're actually going to learn something and save money, thanks to my bright colleague over here. So it's going to be a lot of fun. I can't wait.
I'm already getting hungry and thirsty. Let's go to Rebecca in Portland, Maine. Rebecca, how can we help?
Hi. Good afternoon, everybody. How are you doing?
Good afternoon, Rebecca. How can we help?
Hi. So I'm trying to figure out how I can get started on paying down all of my debt. And what I had told the dispatcher when I called in was that, so we are on a Section 8 voucher, and so it goes by income. And so between that and then my son's SSI, like our income's, kind of limited. And so I've got already like debt collective calling me and our rent's going up in a week and a half after the 1st.
So I'm trying to figure out how I can start slowly paying down these debts, given what our new budget's going to be.
Okay. How much debt do you have total?
Roughly about, I would take educated guess, $5,000..
$5,000.. And it's what, credit cards?
Credit cards, yes.
Okay. So 5K and credit card debt, and that's it. What about transportation? How are you, what's your situation there?
We just ended up actually having to junk our car about two weeks ago. So right now we don't have a vehicle. We try to take public transit up here, but the public transit isn't very good. And buses here run about once every two hours.
Oh, man.
So we've been having, yeah, we've been having to take a lot of Lyfts and Ubers around. So I'd say about weekly with that. If I have to do two a day, let's see there, I rounded up about $20, so $20..
Yeah, that's expensive. Okay.
I'm going to say probably about $100, $120 a week on Lyft and Uber.
Yeah. So we need a car. Okay. Now you outlined a little bit of the Section 8 and the SSI. I'm not an expert on that.
So I might ask you a lot of questions. How much are you bringing in and are there any limitations on your income because of the SSI?
Okay. So with SSI, my son's SSI is based off of my husband's income, so that tends to fluctuate. I know for January, he'll be getting roughly, I'm going to just round it off to about $800 a month starting in January, but that could change in the future. What my husband gets biweekly, after taxes, et cetera, is taking out is about $1,500 after taxes. And then, what was the last thing?
Our rent is going up after the first to just over $1,600.. And obviously with any programs, whether it's Section 8 or any Medicaid programs, they count everything pre-tax. So this is net pay that I'm talking about.
So you get $1,600, the Section 8, you pay $1,600 towards, that's what it's worth?
Yes.
Okay. All right. So I'm looking at your income and I'm like, okay, I'm seeing $2,300.. Is that right? The $800 from SSI and the $1,500 from your husband?
Oh, he gets biweekly, I should say, sorry, about $1,500 biweekly.
Your husband?
Yes.
Okay. So $3,000 a month.
Yes.
And then the $800 from SSI, so $3,800 is what you're working with total? Yes. Okay. Now, what happens if you bring in more money?
I have to report it to our local housing agency and then they have to calculate what our rent's going to be, which is part of the reason why I haven't worked. I'm also disabled and I have two disabled, two out of my three kids are on the autism spectrum, so they're considered disabled. So, but yeah, so it does affect our housing and anything else we get. Like right now. we don't get SNAP because we're over income for SNAP.
Okay. Let me, I'm going to just throw out a bunch of stuff. And you poke holes in it, but I'm going to throw it out here. And, Ken, you're the career guy. What I know is there's a lot of work from home positions.
A lot, a lot, a lot. And you're talking to me on the phone and I know exactly what's going on. You're here with me. So my question is, is there anything that you can do from home? You're working on your computer.
You're working on the phone lines. I don't want you stuck in this. And I don't think you have to stay stuck in this. $1,600, like that, you know, a $2,000, I mean, a guy called in the other day. That was, you know, that, that was his rent.
So I want you to consider your options here. And I think that when you feel backed into a corner, you're backed into a corner. But I want you to really challenge yourself, to open your, to open your mind up, to look like, what could I do? What could I do to make $3,000 a month? Because suddenly, if you make $3,000 a month, now you got, you know, 600, you almost got $7,000 a month.
And now we're getting into like a regular income zone, right?
Right.
Average, before you say, well, but average is around 67,000.. Okay. That's average around 67,000 a year combined. That's where most people are.
What is real quick, cause we're running out of time. This is an income play.
Yeah.
Rebecca, what does your husband make really quick?
3,800 a month.
3,800 a month. Okay. If you're making.
Roughly annually about, I'm going to say 50, between 50 and 52..
So, Rebecca, here's the deal. I understand your situation with your kids, but these are the, this is the pitfall of government programs. You feel like you can't make more money because then they're going to penalize you and you need these services, these services. But I'm telling you, you making more money, get you out of government housing, get you off, and you guys can afford it.
It's messing with your confidence.
You have got to be making more money. If you just make an 18 hour, 18 hours, $18 an hour, that's going to put you right to shade under 3,000 a month. that Jade's talking about. Listen, your ability to move forward on all of this and getting a car. I'm looking at cars right now, $4,000 for a Toyota Corolla in Portland, Maine, 142,000 miles.
Go, make money, get transportation, go make money, get out of government housing, go make money, supplement your kids services. This is about increasing your income. Getting out of debt is going to give you freedom. You guys can do this, but you have to attack it like their life, and your life depends on it. This is the Ramsey show.
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Welcome back to the Ramsey show. I'm Ken Coleman. I'm joined by Jade Warshaw. The phone number to jump in is 888-825-5225.. We want to help you out on your money questions, your work-related questions.
Let's go to Brent in Philadelphia. Brent, how can we help?
Can you hear me okay?
I can, Brent. What's going on?
Hey, thank you so much for taking my call, you guys. Jade and Ken,
just really quick, I actually just ordered your book a few days ago, from Paycheck to Purpose. That's probably going to help me get some ideas with my career, but the main issue or the main question I have today involves our second baby. We just found out a couple weeks ago. we're having our second child. Very nice.
Congrats.
Thank you. I appreciate it. So, with that in mind, we're trying to find some prenatal care and we're looking at using a midwife, but we're trying to figure out how to cash flow it. I just went through the numbers through our insurance company and found that the midwife is a lot more affordable, but it's still going to be about $6,500 out of our pocket before insurance will even cover it. We have a pretty high deductible plan, but our finances are pretty tight at the moment, so I'm just kind of looking for a little advice on maybe ways that we could possibly cash flow it or maybe step up in the work department.
What's making the finances tight right now?
Well, I don't know if it's necessarily an income issue. Currently, I bring home about $4,000 a month, so about $48,000 a year. Our mortgage currently is about $1,266 a month. We currently owe about $169,000 on our house.
And then currently, we have a couple of debts. I have some student loans that just went back into repayment. You guys have spoken of that often. So I have about $39,000 there and then $11,000 in personal loan. So I'm crunching the numbers on there.
Currently, with all of our current expenses, we've been trying to cut in different areas, but we're only ending up with maybe a couple hundred dollars extra a month, if that.
Like $200 or $300 extra a month?
$200 or $300 a month, yep.
Okay, yeah.
So why do you say that it's not an income thing?
It definitely is.
Because I thought, well, Jade's going to sit down and help you with that budget, but after you walk through all this, you're telling me there's not a lot of fat, and then you're saying it's not an income thing. So I'm confused.
Okay.
It is an income thing. It is. You get my point?
Yeah, I get it, yeah.
So I jumped in there real quick. I want to get back to Jade, but I mean, if I'm you, I'm looking at $6,500 is a number that I'm circling on a piece of paper. And I go, as a dad, as a husband, I got to come up with $6,500 for this situation, and I've got nine months and counting. It's ticking down. So I start with, what's that?
You need to find $1,000 extra a month.
That's what it boils down to.
You need to find $1,000 extra a month.
Get after it, my friend. I'd be dividing it by 65, nine by 6,500, and now I know what my mark is, and I got to get after it.
And, comma, and, that's the first thing, because that you can go out and door, dash that, right? You can Instacart your way into that. Ken, I don't want him Instacarting forever. No. And you're bringing another person into this world, and these people can eat, okay?
These babies eat, and when they turn three years old, it just is off to the races. So you're going to need to find a way, long-term, to increase beyond $4,000 a month. And, Ken Coleman, take the wheel.
Yeah, well, I just want to ask you real quick, until we talk about the future, what are you doing now for the job?
So, currently, I work for a large automotive manufacturer. I'm one of their field service reps.
What does that mean?
So, basically, I'm technical support for dealerships. Like computers?
So, if you have a mechanic, someone that turns wrenches on your car at a dealership, or whenever they have questions, if they have a car that they can't fix, they can reach out to me, and I step in and give them advice on how to fix it.
Wow, so you're consulting mechanics?
Essentially, yes.
Which means you can fix cars?
Yes.
And it feels like that is an awesome way to be making some extra money, is taking one of your top skills that is, at a premium. Are you laughing?
I'm just laughing because I've actually been tossing around the idea of maybe, you know, tinkering and flipping some equipment on the side.
My friend, I would stop tossing the idea around, and I'd grab a hold of it and do it. Because, listen, I'm not knocking door, dash or delivering pizzas. The Ramsey Show is never going to knock any work. However, time is money. You ever heard that old phrase?
So, using your premium skills, meaning the skills that I can get the most money for my time, is the play for you right now. And you fixing stuff up and flipping it? I stinkin' love that idea. There's real money in that. And again, we've got a target.
And I love what Jade is saying. Long term, we're now going, okay, what do I want to do? Because the reason you bought my book is because you're thinking about the long term. 15 years, 20 years down the road. What does that life look like?
What are you doing for work that far down the road?
Yeah, that's true, yep.
But what are you thinking? You got an idea?
Well, I've been... That's part of why I kind of wanted to start thinking. Because there are jobs available farther down the line, at least for my career. But they're all back where the company's based. One of the big manufacturers in Michigan.
Brent, when I asked you that question, you had an answer. And then you begin to think through it. You're dealing with some fear and doubt. I've coached almost 10,000 people on The Ken Coleman Show who call me up and they act like they don't know what they want to do. And I always find out about two minutes in, they do, they're just afraid to say it.
So, because I'm your friend, and Jade's your friend, and we don't judge anybody, what's that thing that you've been thinking about that you want to do? Just say it.
Well, I'm...
See, you're already trying to couch it. Just say it. I'll tell you if I think you're crazy.
I mean, I really want to work with... be doing some engineering type work.
There we go.
I don't think... Hey! But the avenue to do that is to go back. Go ahead.
Go back to what?
So we have to move back to Michigan. Right now we live in Pennsylvania. But we'd have to move back to Michigan, which my wife is not...
That's the only place you can do that type of engineering work?
I mean, I could move to a job similar to the one I currently have for another company.
No, my friend... And move up that way. Brent, Brent, you know what kind of engineering work you want to do, yes? You are limiting yourself to saying that you can only do it in the state of Michigan. Am I right?
I think you're right.
Yeah, I know you think I'm right. Did you say you think I'm right?
Yeah. Yeah, okay.
I'll tell you why, Jade. I think that's because, Brent, you have... That's where you think you've got relationships and that's the only place you can get that kind of engineering work, because you used to live there and you used to work there. I think you limit yourself because you struggle with a lot of self-doubt. Is this true, Brent?
That's true.
All right, Brent. Now, how is it that I know that? I've never met you before in my life. I'll tell you how I know it. I can hear it on you, and I'm not judging you.
I'm telling you, my friend, that we all deal with that. I deal with doubt. Listen, Jade, we all deal with it. I'm trying to get you to see real quick. is that you have been limiting yourself based on your own beliefs.
When I walk you through it, you laugh at yourself and chuckle, because you know I'm just saying straight up common sense that Michigan and the previous company and the previous industry is not the only place that a guy with your talent and your passion and your experience and your desire can do engineering work. Is that true or false?
That's true.
All right, then. So here's the deal. Back to the issue at hand. Start using that skill set right now, because you got to come up with $6,500 to that midwife, and that's the best way for you to do it. Read the book from Paycheck to Purpose.
It's going to be like you and me in your ear with the speech I just gave you. And you, my friend, need to start to connect and begin to look without committing. Look around the country. Look for companies and industries where the engineering work that you are qualified to do, where you can do it. And as you begin to look, you'll begin to see possibilities that you never saw before, Brent.
Congratulations on that, baby. But right now, my friend, $6,500 on a whiteboard. Circle it and start getting after it. This is The Ramsey Show.
Welcome back to The Ramsey Show. I'm Ken Coleman. Jade Warshaw joins me. Hey, folks, if you're tuning in right now, live or later, and you're watching and you're, should I hang around a little bit longer? Trust me, next segment, you don't want to miss it.
Jade Warshaw, special segment, how to save money and still entertain the right way during the holiday season. This is the gift that keeps on giving. Yes, it does. So I can't wait. I'm excited.
And I get to just sample whatever she's bringing in here. So to me, it's just...
You just want snacks, Ken.
You know what? I'm a simple man. So I'm very excited about that. All right. Clara is up in Louisville, Kentucky.
Clara, how can we help?
Hey, guys. I am thrilled to be able to talk to you guys.
Well, we are thrilled to talk to you. What's happening?
Yay. I have a question more for Jade, my money girl.
Okay.
I'm going to smoke a cig while you guys talk. This will be great.
We are looking at buying a house next year.
And we want to know if we're crazy or if we're rushing into it or if our numbers are looking okay and what order we need to do things. Okay.
Tell me more.
We have $6,200 on a credit card, $7,000 on a truck, and then a $20,000 home equity line of credit.
Since August, we've paid off $34,000 in credit card debt.
Good.
So we're on a roll. And my goal is to have the credit card and the truck paid off by March.
Okay.
And then I didn't know, do I not pay on the home? Well, I pay the minimum payment on the home equity line of credit and do our three to six months emergency savings. And then, when we sell our house, pay that off and still have 20% to put down on the new house?
I'd work to pay it off for two reasons. A, it's less than half of the value of your home, I'm guessing. Like it's less than half?
Yeah. We owe $124,000 on our house and we could sell it for $230,000..
Yeah. Because it's less than half of that $124,000, I'd go ahead and pay it off. And here's the thing. If you don't pay it off, it's going to cut into your winnings, right, when you sell the house. Right.
So you may as well pay it off so that money goes right back into your pocket. Again, it's that idea of a forced, you're forcing yourself to save the money by paying off this $20,000.. Does that make sense? Okay. Yeah.
So you're going to get it back.
But we still need the three to six months before we buy? Or can we take that out of what we make on the house?
Again, it's what you're saying. I see what you're saying, but you need to get the three to six months in place first. And then, when you sell the house, that money is going towards the next house.
Okay. Right. That whole chunk goes straight toward the next house.
Because you're going to need it, right? How much are you trying to put down?
Well, we would only need about $70,000 to put down. The house we're looking at is around $300,000..
And how much... Sorry, you told me this, but I missed it. When you sell the house, how much will it bring in total?
$230,000..
No, no, no. How much will you take home?
We should have... Oh, we should have about $110,000..
$110,000.. So you're saying... Is that after fees? And you've considered all that?
No, that's before. Okay.
So let's consider fees and let's knock off $15,000, all right? And let's say you bring home $95,000.. So you're saying, hey, we never planned to put that full $95,000 down. And we can take some of that and put it as our emergency fund?
Right.
Well, what would... We still have? the 20%. Listen, the way my mind works, I'm like, I want to put the full 95% down or the full $95,000 down. Okay.
How long will it take you to save up? three to six months?
Maybe two months.
I would... Listen, listen.
Save up that three to six months. It's all the same. You know what I'm saying? It's a big pool of money. And I see what you're trying to do.
You're kind of trying to shift it so you can move faster. I would rather you have that extra $15,000 to put down on this mortgage. Okay. In the long run, you're going to thank yourself for it. And it's only going to...
It's not like... It'd be one thing if you said, Jade, it's going to take us six more months to save up or another year to save up. That'd be maybe a little different. I might change my answer. Maybe not.
But in this case, it's two months. Like, just wait two months. Right. You know, and then you've got more money. You've got $15,000 more in your pocket, and that's going to go towards your mortgage.
I love that idea.
Okay. All right. Well, thank you. You're welcome.
That solves my problem. Claire, did you get what you needed from Jade? I did. I mean, anything? Nothing?
Your cigarette's gone out.
No, I don't think I do. Oh, great. I see how this is, Claire. Oh, Merry Christmas. I see how this is.
No, we love you, Claire.
Thank you very much. Merry Christmas.
Yeah. She didn't want to ask me anything.
Listen, Ken, in that sweater...
I don't get it. I know. I think it's intimidating. You know, it puts off the wrong vibe, I guess.
It's very intimidating.
Alex is up in San Antonio, Texas. Alex, how can we help?
Yes, sir. Good afternoon. I owe my sister $20,000 that I would like to pay her back. She loaned me this money earlier in the year. And when we invested the money, it didn't pan out.
So I was calling for your opinion on getting a loan. And, if so, what wish would be the best out of the loan?
Okay, hold on a second. So you got your sister to give you $20,000 for some type of business investment.
What was the investment?
Yeah, what was it?
It was property, but it's out of the country. It's in Peru.
Okay.
We've got a little dicey, and it hasn't panned out.
What does that mean?
I would like to pay her the money.
I know, but what does that mean? it didn't pan out?
Well, we've run into some obstacles, legal obstacles. Evidently, the people that we were dealing with weren't entirely honest with us.
So the money's gone, and you have no recourse.
Right.
How's your sister taking it?
Well, she's been pretty patient with me. She's not harassing me at all, or keep reminding me.
When were you supposed to pay her back? Tell me the initial plan, because I'm trying to gauge. What your timeline is here.
We were supposed to pay her within a couple of months. It's been almost a year, and it's gone just a little bit longer than I would want it to.
Got it. Okay.
But you're broke. You're broke, and you're thinking now, I got to get this monkey off my back with my sister. So I'm going to go get a loan, and I'm then going to just pay the bank back. And I just think that's ridiculous. I'd rather you be spending all of your time and effort just paying your sister back.
You don't need to go to a bank, or a credit union, or some private loan shark type situation where they're going to charge you enormous interest rates. Just start paying her back. Could you pay her $1,000 a month? What would need to be true for you to pay her $1,000 a month or $2,000 a month? Could that happen?
Yes, I could pay her $1,000, possibly $2,000 if we really just put ourselves in.
Then start doing it. This is your sister, man. She loaned you the money. Man up, start paying it back.
What was that?
She's impatient enough with me, and I would prefer to just pay her because I see her-.
You can't pay her $20,000.. So pay her what you can.
Because here's what can happen. Here, I want to lay out two sides of this. Unless you tricked her, right? When you said, hey, sis, let me borrow $20,000.. I have this real estate thing that I want to invest in.
When you say the word invest, any person knows, okay, there's a chance I could make money, and then there's a chance I can lose money. So I'm guessing she knew going in, there was a chance that you would lose this money. And if that was the case, she wouldn't get her return back as quick, or she wouldn't at least get the money that she invested back as quickly.
So there is part of that. There is part of that. that's true. You both agreed on this thing. I think it was a terrible agreement, but you both agreed to it.
So there is part of that where it's like, okay, you said you were investing in this. It didn't pan out. So it's going to take a minute to get the money back. I'm afraid of you getting a loan, because I think if you get a loan, it's going to cause you to move slower on this than you need to. Because, as Ken said, the monkey's off your back.
Now you can just be willy nilly with it. When it's your sister, you're going to move. I don't know if I can say, you can move hell and earth to get this money, right? And so I want that kind of intensity for you to pay her back. Because you don't like this.
And I like that. you don't like it because that's what's going to make you move. And you need to move, my brother.
And let me tell you something. If you go get a loan, that interest payment is going to be more punishment for something that you already did. that was dumb. Don't multiply, dumb. Learn from the stupid mistakes.
We've all done them. Move forward. Start paying her what you can each month. You'll get through this. This is The Ramsey Show.
Hey guys, it's Rachel Cruz. When it comes to teaching kids about money, moms tell me all the time just how overwhelming it can feel to get started. That's why I'm so excited to tell you about Financial Peace Kids. This toolkit was designed to make learning to save, earn, spend, and give money fun for both you and your kids. The best part?
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Welcome back to The Ramsey Show. I'm Ken Coleman. I'm joined by Jade Warshaw. We've for years and years and years, decades, been coaching people to win with their money, and a big part of it is budgeting every dollar. The world's greatest budgeting tool, saving money.
So this segment is all about you saving money in the holiday season. I turn it over to my unbelievably qualified budget queen herself. Oh, budget queen. Warshaw has got a plethora of things here that I get to sample. Take it away.
Man, okay. So you're right. I love it. We're doing this money thing. It's that time of year.
It's the holidays, Ken. Yes. Parties is what I'm talking about. Christmas parties, New Year's Eve parties. They're all over the place, and you want to participate.
Even if you're in baby step two, paying off debt, you want to find a way to participate. And the number one thing, I would take a poll. if you want. The number one thing, when you go to somebody's house and you're like, I got to bring something. It's a bottle of wine, right?
Let me bring a bottle of wine. But then your mind immediately goes to, okay, I only spend like $7 to $10 on a bottle of wine, but I don't want to walk in there with a barefoot, the barefoot with a yellow tail, right? So do I need to spend $30?? And honestly, can they really tell the difference? Can you tell the difference, Ken, between an expensive bottle?
I don't know. I think it's about, let's find out.
It's about time. This is a $30 bottle of wine that was brought to me in my home.
All right. I'm not going to, so when you pour it, I don't want to look. I feel, I'm going to look this way. So, because I want to be able to figure out if I can tell, because if I see you pour it, then I'm cheating.
So this is the, it's a $30 bottle of wine that somebody brought me compared to my favorite bottle of wine, which is $9.99.. You're kidding me. $9.99.. Really? It's my favorite.
It's called Apothic Red. Now, Ken-.
Oh, yeah, yeah. Okay. Have you poured it? Yes. Okay.
Drink the first one. I know, I know which is which.
Taste it.
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