You CAN Break the Cycle of Debt Holding You Back

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. The phone number here is 888-825-5225,. Jade Walsh, our Ramsey personality, best selling author, is my co-host, we're glad to have you with us today. Chase is going to start this day off in Jacksonville, Florida. Hi, Chase, how are you?

Hey, I'm good, Dave, how are you guys?

Better than I deserve. What's up?

Me and my wife recently started doing your baby steps here on New Year's, I got your book, Total Money Makeover. We added everything up, and, mortgage included, we have like $405,000 in debt. currently, because we recently bought a house. We make like $146,000 salary combined. And I'm just wondering if that seems doable, normal, like taking the normal path, or do you think we have to do something drastic?

Well, how much of the debt is your mortgage?

About $329,000..

Okay, yeah, so the way we teach, at first, we're just handling all the debt except the mortgage. So I think, if, for the time being, you kind of set the mortgage on the shelf, and don't be concerned with that. Just look at the other bit of debt that you've got, the other $70,000 that's here. That's what I'd be concerned about. And with your income, I think it's just as simple as getting on a budget and figuring out how much you can put towards this every month.

Right. Yeah.

How far out of the Total Money Makeover book are you?

A couple of chapters, but I've been listening to your show for a month or two.

So, well, baby step. one is save $1,000 when you get there. Two is to do what Jade is saying, and that's pay off your debts, everything but your house, smallest to largest. And you've got $76,000 of that, and you make $146,000.. And so, technically speaking, if you were to live on $70,000, not counting taxes, you'd be debt-free in one year.

I like that.

But you do have taxes, and you might not do that, so it might take you two years. But much less than two years, you should be debt-free, except your mortgage and baby step two. Mm-hmm.

Could I ask you a follow-up question on the mortgage payment?

Sure.

So, I have TMI on this.

I mean, technically...

I would keep it on the back burner, yeah. I'd put it in baby step six. Here's the thing. If you're out of baby step two in 18 months, and you take another six months to finish your emergency fund, then you're going to start doing four, five, and six simultaneously. So, I mean, we're talking two years or something, you're going to start to attack your mortgage.

Mm-hmm.

So, that's going to get rid of the PMI faster than it would if you screw around with all this stuff at one time.

That's right.

So, no. I think you just sit there and pay the mortgage, enjoy the house, and work your tail end off and live on nothing. You better really enjoy the house, because you don't need to leave it. You don't need to go out to eat. You don't need to go on vacation.

You know, he read the Total Money Makeover. He got excited about what he read, and the key is get excited. You do start feeling the weight of the debt, but don't let it cause you to go in the wrong direction and go in the opposite directions of what the steps are teaching. Do you know what I'm saying? Yeah.

Yeah. It's the fastest way. At the end of the story, the fastest way to building wealth is to follow these baby steps, and it's not like we just made this stuff up in a think tank somewhere. I mean, we've sold 10 million Total Money Makeover books. We've had 10 million people go through Financial Peace University.

Hi, Dave. Thank you for having me.

Sure. What's up?

So I'm a 19-year-old in college, and I have some student loans. Not too worried about them. I have no debt, and I was basically kind of wondering what you would recommend me to do to either avoid student loans or pay off the few student loans that I have, and then post-student loans to just build my wealth.

Where are you going to school?

Ohio, Wesleyan University in Columbus area.

And what's that cost you so far in student loans? How much have you taken out so far?

I would say about $6,000 max.

Okay. And is that per semester?

That's for the past three semesters that I've been there.

Okay. So...

Yeah, so it's nothing exponential.

So work 40 to 60 hours a week and pay for school?

Mm-hmm.

Okay. Yep. So my plan after college is to go to med school, so I know that builds a lot of debt and obviously student loans, so...

No, not, obviously.

Well, I think you have to change your mindset, because, to answer the core of your question, how to go to school without student loans, is you go to school without student loans. So you have to take that off the table. And I can tell, by the way you're talking and the words that you're using, that in your mind, somewhere it's still an option, and somewhere in your mind it's still kind of like the only and best option, and you've really got to change that. So, if I'm you, first and foremost, I'm going to finish undergrad, like Dave said, I'm paying my way through. And then you need to start researching programs that'll pay for your school as you're going to school.

Yeah, and there's things called MD-PhD programs, where you can actually go to work for the university and then your tuition's free while you're studying. for MD. There's this neat thing called the military and they will pay for it and you will serve them for a while and serve your country. In other words, there are ways to go through and become a doctor. There are even some of the hospitals now that are paying for it, but of course you're going to promise to work there for a period of years afterwards.

No, you're right. You're right.

But you want to be real careful to choose to avoid this. And okay, I've got a new goal. In addition to going to med school, I'm going to med school debt free. That's a cool goal. Hey man, thanks for being a listener.

Hey, Dave. Hey, David. Pretty close. It's pronounced Alicia.

Oh, I'm so sorry. They had it correct on my screen, and I screwed it up. I'm kind of legendary for screwing up names. What's up? How can I help?

That's okay. Okay, so I'm recently into real estate. I got my license back in April. I sold my first half a million within my first six months, so I'm very proud of that. And I'm finding a hard time getting buyers to their pre-approved status while trying to help them get out of debt.

Good job. That's awesome that you're even thinking about it like that.

Yeah, well done, well done. So we teach people to not buy until you are debt-free and have your emergency fund in place. So don't send them to us if you want them to buy while they've got debt, because we're going to mess up your sale.

True that.

So, first thing, but if they're going to go that route, the thing is this, generally, let's just say, how do I talk to someone about a difficult subject like money or getting out of debt? Don't talk to them about them. Talk to them about your story. Just say, I don't know about you, but a lot of people are like me. And I had this and this, I had this debt, I did this stupid thing, and I struggled this way.

You could lose a few pounds.

You know, Dave, you could really, you could fit better behind that old desk over there. And so, that's the thing. I think that works really good, with a lot of ways to convert a lot of people to a lot of things. Absolutely. I like talking to people about Jesus, but I don't want to wag, beat them over the head with the Bible.

Yeah. When you're talking to them, you're not talking at them, and you're not kind of putting yourself in a higher position, right? Yeah. I don't want to talk down to people.

Although Tim could do that, because Tim's also tall. But anyway. But you're right, you're right. That's a big thing. Because this subject is not unlike being fat.

Very sensitive.

Yes. It's a shaming. It has a lot of condemnation with it, and those kinds of things. And so, you've got to just be real careful to not wag your finger in any way. And I go, well, you know, if you'd quit doing that stupid stuff.

They called our phone.

If you ask me, now, I've got to tell you. Because that's like my job.

Right. Yeah. You called the number. Yeah.

You dialed it up, baby. So don't call here and ask for our opinion, because we'll give it to you. We are experts on our opinion.

I think so. Especially when you're in a position like her, they trust, they trust her to a certain degree because they chose her as the realtor. So she's already has that position of trust. And I think you're right. If you choose your words carefully, you can grow that with them.

Well, I mean, anything, religion, anything you want to talk about. Yeah. I mean, you know, nobody has ever been, had their mind changed by someone just randomly starting to yell at them. I mean, it's like, as if that works on the internet too. It doesn't work.

Yeah. Definitely.

The person in your mirror.

The man in the mirror. Michael Jackson said it best. I mean, most of us, Dave, we have this ticker tape. You ever watch the news and there's that ticker tape that's rolling in the background that's telling you what's going on. Most of us have that in our minds and it's affecting our actions, our behavior, and we're not really aware of it until we take the time to stop and read it and understand, okay, this is what I've been thinking this whole time.

There you go. Money's not a math problem with Jade Walshaw. You'll enjoy it. I promise. This is the Ramsey Show.

This show is sponsored by BetterHelp. This is Deloney, and I'm always railing against social media, especially in the summer, because everyone uploads the highlight reels of their perfect bodies and perfect vacations and perfect kids. And I know they're not real. And I also know that I'm blessed beyond my wildest dreams, but I still find myself wishing my life was like other people's. And, based on the data, I know this is happening to you too.

Jade Walshall Ramsey, personality, is my co-host today. Thank you for joining us. Michael and Jill are on the Debt Free stage. Hey guys, how are you? Good.

Phoenix, Arizona.

Oh, fun. Welcome to Nashville. Thank you. And how much debt have you paid off? $570,000..

I'm a director of administration at Howe Realty.

Ah, very good. Good for you guys. And what kind of debt, pray tell, was $570,000?. It was the house we live in with our two kids.

Yay! Looking at weird people!

Love it. That's a beautiful house.

Very cool. A paid-for house. What is this house worth? About $800,000..

Let's go. Love it.

And how much is in your nest eggs? Just over a million. Come on! Or a little bit more. All right!

That's awesome.

Law enforcement and administration. Yes. There we go. And that's how we did it. So way to go, you guys.

I'm in my mid-40s. Amazing. All right.

Very cool. And debt-free and millionaires. Yes, sir. All because of you. Man, I didn't pay any of it.

We've been following you for 23 years.

Wow. That's great. Well, tell us the story. What happened 45 months ago that made the house get in the gun sights? Sure.

So wait a minute. You bought the house three years and nine months ago and paid it off in three years and nine months? Yes, ma'am. Holy moly. Wow.

Yep. Wow. But that was the deal. That was the deal. I said five years.

Quick. I'm shook. That's amazing.

So, Jill, he comes in with his deal and you just said game on?

I did.

Yes. I want the house. Game on. Game on. We're going to live on nothing and we're going to be done.

Yes, sir.

And not even four years later. Correct. You do, the five-year goal.

Yes.

Wow.

Beans and rice, rice and beans for the house. Yep. Yes. Hey, okay.

Yeah. But we're worth a million eight, and the house was paid for.

I'm not mad at it.

In freakin' Phoenix, which is an incredibly good real estate market. Way to go, y'all.

Thank you. How's it feel? Feels great. Feels great. I'm very proud.

Yeah, liberating, for sure. I want to brag about it a little bit, too. Go on and do it. It was a good place to do it. We like bragging here.

That's right.

Oh, my gosh, you guys. I'm so proud of you. Thank you. Way to go. Way to go.

Budget. Budget. Budgeting.

Teamwork. Teamwork.

Sacrifice. Sacrifice.

Yeah.

Yes.

Wow. You realize at some point, maybe even before this, and you just applied the principle, that the biggest thing standing between someone and hitting their goals is not what they have to do to get there, it's what they have to give up to get there.

Yes.

So the guns, the fastback Mustang, I mean, like, I want this goal. Yes. I want this goal to the exclusion of other things.

Yes. Bringing my work, bringing my lunch to work every day, making my own coffee, doing my own nails every Sunday, not getting my hair done professionally.

She does the landscaping.

I do the landscaping. The plumbing.

I kill the bugs. You know, I kill the weeds. We do all those things we can, so we don't have to pay someone else to do it. And we're not very handy. So it usually takes us...

Well, speak for yourself. I'm pretty handy. She's pretty handy. That's an adventure. Wow.

You know, I did that. I started doing my own hair.

It looks like...

Doesn't it look like it? Well... It looks like it. Shut up, Jay. Just shut up.

You lost a few strands, Dave.

Missed a spot. Missed a spot.

Well, we bought a hot tub. Yes. Yeah, there we go.

We bought a hot tub. That's a good one. And we're going to the Caribbean with some friends. Nice. That's a good one.

They have. I like it. Living like no one else.

Steven and Emily have definitely been our big cheerleaders, as well, and helped. How old are they? 20 and 18.. Oh, perfect. So, they got to watch mom and dad do something hard.

Hey, can you speak to...

That's changing the family.

The housing market has people up on end, right? And I'm looking at, okay, $570,000 house. You said you're in your 50s.

No, no, that was the mortgage. $800,000 house.

Well, now it's worth $800,000, right? Yeah. Oh, wow. So, speak to people who are frustrated by the housing market. They're in their mid-20s, and they feel like they need to have the house today, and it's too expensive for them.

Well, this is our fourth house. So, you know, we moved up every eight years, and we always get the 15-year fixed mortgage. We never stayed in anyone long enough to pay it off. That's my fault. That's her fault.

We're never moving again. I told him, this is it. We're never moving again. I promise, Dave. Never.

We've been liking Tennessee so much, maybe we'll get a second house out here.

Listen. You can do it now. Yeah. Wow. Exciting.

That's what you did here, and you did something you could put in the sites where we could do it in five years. Knock it out. Boom. Yes, sir. Because you rolled some equity into this, obviously.

Thank you.

Thank you. So, so proud of you. Thank you. You're absolute heroes, taking control of your lives. Michael and Jill, Phoenix, Arizona, $1.8 million net worth, living in an $800,000 house.

Three, two, one. We're debt-free!

Yeah!

Wow. You gotta love it. Gotta love it. That's amazing.

Incredible.

And, and, you know, we've heard these stories for decades around here, and so it makes us know way deep down in our bones, because we've just witnessed it, that it can be done. Yeah. And so we just want to make sure all of you know it can be done, and that's one of the reasons we continue to do debt-free screams, and because each one of these stories has something special about it.

Yeah. Deep sacrifice. I love it. Listen, you don't have to sacrifice that deeply to pay off a home, but the fact that they chose to do that is really, really cool to me.

And look at where it puts them net worth-wise and cash flow-wise. Yeah. I mean, they're making a couple of hundred and not a payment in the world.

Oh, man. That's exciting.

You got some money. You can stack some cash now, man.

All right. All right. You got choices.

And we got an 18- and 20-year-old well on their way to being millionaires.

Mm-hmm.

Mm-hmm. I mean, that's talking about mathematically, but also spiritually and from a behavior standpoint, changing your family tree, because those two youngsters witnessed their parents doing hard things. Yeah. Love that. It's a big deal.

Today's question comes from Terry in North Carolina. My wife and I have worked hard. We paid off our debt and have a net worth of $8 million. We still watch every dollar and save and invest as much as possible. My brother and his wife do not follow the same strategy.

If this was my brother, I would say, I love you and I'm cheering for you, and I will give you encouragement and advice, but no more money.

No more.

I'm done, because the money that I've given you has not helped you. You've not made any adjustments. What you did at Christmas was, frankly, ridiculous and insulting. After I tried to help you and gave you money, you went out and acted like a four-year-old, and so I love you. I'm going to cheer you on to the extent you want my help.

He got trashed, but I feel like the brother who's trying to give the money, he's trashing.

himself too, because he's the only grown-up in the equation. Yeah. I mean, little brother or whatever he is, is acting like he's four freaking years old. I mean, who responds to a gift by going out and helping with money, and after the giver of the gift says, okay, here's a podcast, here's a budget, here's separate accounts, and here's some money, and we're going to stand you up and we're going to put you on roller skates and push you down the road, and here we go. And what do you do?

That's why I say if you can't walk away and just kind of shake your hands and walk away, don't do it.

I wouldn't stop speaking to him. I would tell him you love him and I'd be there for him and help him, but you are not required to give someone who is misbehaving money, and you shouldn't, because you're financing the misbehavior. It's called enabling. Nathan's with us in Austin, Texas. Hi, Nathan.

Hi. I'm doing well. How are you?

Better than I deserve. What's up?

Yeah. So I've been listening for a couple of weeks now. My wife and I built up a little bit of debt over the years, mainly in credit cards, and we are committed to creating that debt snowball and paying it all off. But at the same time, we need to get her a vehicle. We have one vehicle right now that I use for work, and we need to get her one by August because my daughter starts preschool.

Have you always been a one-car family?

Just for the last year or so.

What happened to her car?

She no longer needed it. She works from home and watches our daughter. So we had a car payment we were paying on.

So you sold it to get rid of the car payment?

Sold it, got rid of the car payment, and they actually paid us a little bit on it.

What are you driving?

I'm driving a paid-off vehicle.

What is it?

It's a Chevy Equinox.

What's your commute?

So it depends. I'm in sales, so I drive as far as an hour to an hour and a half away, or sometimes I'm just taking it to work.

And her thing is she's got to take a kid to school.

Right.

Okay. What do you make? What's your household income?

So last year we made $105,000 together.

So if you saved up $3,000 and didn't put that on debt and went and bought a little car, would that be okay?

I think that would be okay. And I've been looking for vehicles in the area. Things I'm finding are more in the $5,000 range, but I don't know.

That's because you weren't looking for a $3,000..

Okay. Okay.

It doesn't need to be anything fancy. How much debt have y'all got left?

So we have about $20,000 of debt. We have $6,000 in student loans, and the rest is in credit cards.

Okay. So if you're going to lean in and get this paid off really fast, then you can move up in car after you get your emergency fund in place, and this is a temporary solution. I'm not suggesting you ask your wife to drive a $3,000 car for the rest of her life. But for the next 18 months? Yeah.

Listen, if all she's doing is picking up the kids and going to the grocery store, that'll get it done.

All it's got to do is run. Mm-hmm. Not leak.

Right.

Yeah. And there's plenty of $3,000 cars out there. I mean, an old Camry that's in good shape, even if it's 150,000 miles or whatever, maybe it's got a ding in it, who cares? And that's okay. Again, this is an 18-month car.

Okay. Okay. So should we just pause the debt snowball and put all the money towards $2,000 or $3,000?? Okay. Yeah.

A couple thousand bucks, $3,000 max, and then go get you a little something that's kind of ugly but reliable. Mm-hmm. And it's the kind of car you give it a name. It's called a hooptie. Right?

It has special features.

It has special features. This is old blue. Yeah. When I was growing up, we had old blue. My mama had a Chevy II.

So there you go. You know what they say about Novas? It's Nova. It means no-go. Oh.

I didn't know that. Okay. Now, this car is a... The rebuilt ones that are very cool. They're little hot rods.

And then you're a millionaire!

Just like that. That's how that works. This is the Ramsey Show.

Hey, Dave. Thank you so much for having me on the show. I'm a long-time listener, great fan, and you have helped me in more ways than you know, sir.

Well, thank you. I'm honored. How can we help?

Well, sir, I am going through a divorce after five years of marriage. We have four kids, four girls, yes. One child we have together, and the other three are from our previous marriages. You know, I brought in two, she brought in one, but my wife has decided to end it, to call it quits. She's already moved out.

And you have no debt.

And with the van, no debt. I'm on baby step four through six, currently contributing 15% to my retirement. Now I will be honest, I have not put anything away from my kids' college. I was getting around to that. So my question is, with this money, it's already an emotional rollercoaster, and I've heard what she said in the past about not making big decisions within like a year, if I get that right.

What do you make?

So I make 70K at gross.

You've been married five years, and you both have kids. So you're 30-something?

I'm 42.. I'm 42.. I kind of started your program a little late in life.

I'm just trying to figure out where you are based on your kids and marriages and stuff. Okay.

The child you guys have together, are they primarily living with you?

50-50,. ma'am. We've got a 2-2-3 split, so she's only four years old, so we're right in the middle of it.

Okay. I don't know that you have to rent Southern for a year. We're usually talking about a death in that situation. But I do think your life is probably gonna shake out and still be reforming, still be clay on the wheel for at least six months. So I'd probably just go find you a nice rental for six months, and then let's see where we are, you know, at the end of summer.

Yes. Yes, sir. Okay.

There's no harm in that. The only thing that can hurt you there is if house prices are gonna go up during that six months.

Right. And that's what one of my friends was telling me. He said, even with the interest rates now, buyer's marketing, you need to get a house now.

He's right. He's right about that. But the timing's not right for you.

Ah, okay.

Even though the market timing is...it's a good time to buy. It's a really good time to buy. But I wouldn't...I still wouldn't because of your situation, nothing to do with the real estate market.

Okay. No, that makes sense.

Yeah. Just give yourself a little room to heal a little. You'll make a different decision with six months of healing under your belt.

I think so. And I think you made a good point about kind of seeing where all the cards land, because he doesn't know where his ex-wife is gonna end up. And there is some practicality to...I don't know.

And there's probably a relationship in his life in the future. I don't know when, but...and you don't think about that right now, when you're sitting in the middle of a broken heart.

Right.

Right. So, I'll just take your time. Take your time. You're gonna be fine. Jonathan is in Salt Lake City.

Hi there, Mr. Ramsey and Mrs. Warshaw. Thank you so much for taking my call. Sure.

What's up?

So, I am calling. My question is, should I be looking at life insurance right now? And if so, how much and what term? The background to the question is I am currently a dental student. My wife and I have no debt.

How are you paying for dental school?

So, before I started dental school, we actually both saved up a good chunk of money, both with our own and on our own, as well as with some help from our parents. Wow. That was originally going to be used for a down payment on our house. We decided to repurpose that money and use it to help get through dental school without.

So, if you die, how does your wife eat?

So, and it really kind of depends on when. Of course.

I mean, if you die now, if you die this year, while you're in dental school, how does she eat? How does your kid eat?

My wife has a job, so she makes about, our take-home pay is about $4,000 a month. And so, she does have that. We also, of course, have the money that we're using to pay for dental school, which, right now, between our emergency fund and our savings account, is about $170,000.. So, that's what we would have right now, and that's what she would have.

Okay. All right. And you're how old?

I'm 25..

She's 26. Are you healthy?

Yes, sir.

Are you overweight?

No, sir.

Do you smoke?

No, sir.

Go buy a million dollars. in term. It's the cost of a pizza. It doesn't cost anything. Just make sure your family's taken care of.

Now's the time.

This is the Ramsey Show.

Wow.

That just blows my little bitty brain. Thank you guys. Thank you so much. We appreciate you. How can you help us further?

I'm doing good. How are you guys doing today?

Better than we deserve. What's up?

I have a quick question for you guys. I've been just really starting to get into listening to you guys and really trying to hone down on my finances the past, I would say, past couple of months and kind of getting a better understanding of where I'm at. So my question for you guys is, I'm 27 years old. I am still living at home with my father. I have no issue with that, though, however, I also would like to move out.

Do you have any debt? Like, what's your financial situation?

So right now I have, I mean, I have a leased vehicle, but I mean, that's totally under, you know, control. No, it's not. It's about $300..

If it was under control, you would have paid for it.

It's true.

Okay, so you got the leased vehicle.

I would have paid for it up front, but yeah, it's $300 a month.

What do you make?

I make about $75K a year.

Any other debt?

I have about, no, I have about $75K in savings right now.

So what's stopping you? Like when you get ready to pull the trigger on this, what holds you back and says, ah, I'm not going to do it? Because you've got the money.

Yeah. I just don't know if now is a good time to do this. I don't know if...

Two years ago was a good time to do it.

Do it. That was the thing, guys.

It's time to go. I definitely missed out. No, I'm not talking about the real estate market. I'm talking about...

Just life.

I'm talking about Billy and Long Island. When you were 25, it was a good time to move out. So let's go. Let's go. This time.

You're just comfortable.

Go, get you a place. It's not because you don't like your dad and it's not because it's not a good idea to save money. Both of those things can be true. But there's something that happens when you have your own place and you're paying your own light bill and you have to buy bread, or there's not any. It just changes everything.

My pastor says the comfort zone is a great place, but nothing ever grows there. Ooh.

Way to go, Dave.

If you want to grow.

Her pastor's name. Your former pastor. Yeah.

His name's Dave too. Yeah.

Great guy. He's a good friend. Yeah, he's right. He's exactly right. Nothing grows there.

Confidence.

And a good one. A good one. Yeah. It builds confidence. It builds toughness.

That's good, Dave.

Write a date on the calendar. And by this date...

Yeah. And tell someone about it. Yeah. Yeah.

And tell somebody you did that. But by this date... And that starts the wheel moving in your brain. Your brain starts going, oh, we've got to look for a place. And you'll start running across things.

And tell your dad. Tell your dad that you're moving out. Yeah.

Yeah. And how much you appreciate what he's done for you so far and how much you love him and all that. That's all good. Because this has nothing to do with that. Some people have to get out of the house because it's a toxic disaster.

That's right. He seems like he's very comfortable where he's at.

That's a little bit of the problem. Yeah.

That is the problem. That is the problem.

Jim is in Jacksonville, Florida. Hi, Jim. How are you?

Hey, Dave. How are you doing?

Better than I deserve. What's up?

Yes, sir. I got a question for you and a sort of what would you do in my predicament sort of question. I have a very hefty goal in mind. I do want to retire my parents by the time I turn 26 and hopefully have enough in the end to make me a millionaire as well.

Did you say retire your parents? Yes, ma'am. What's that mean?

Why is that your job?

Well, they've done a lot for me my entire life, and I'd like to pay them back.

That's not your job.

Well, I wouldn't necessarily say a job, but it's a goal of mine.

You're 26.. You're not 26..

How old are you?

I'm 21..

Well, hey, can I just put this in your mind? When parents take care of their kids, they do it because that's what we're supposed to do. It's not a debt that you owe us back later on in life.

Yes, ma'am. I understand, but it's still just a goal of mine in the end. But right now, I'm 21.. I dropped out of college six months in. right after high school.

Okay.

And I have about $100,000 in savings.

Great. It doesn't change what I said, though.

Okay, so you want to pile up cash and build wealth and be able to help your mom and dad. Okay, so how can we help? Right.

Where would you put basically liquid funds into something that would make the most of my return?

The first and foremost, I would get in to stay debt-free. Secondly, I would have an emergency fund liquid in just a high-yield savings account of three to six months of expenses. Then, thirdly, and you're ready to do this today because you've already got all those things covered, I think. I would sit down with a Smart Investor Pro and open some mutual funds and start building some wealth there. And Jim, one more time, I'm going to challenge your goal.

How are you guys?

We're great. Good to have you guys. Where do you live?

Spartanburg, South Carolina.

Just over the hill. That's a great town. I love Spartanburg. Welcome to Nashville. Thanks for being here.

$255,000.. Love it.

How long did that take?

Forever. Oh, sorry. Six years.

Okay. And your range of income during that time?

Starting around $130,000 and a little bit over $200,000 now.

What do you all do for a living?

Jennifer? I'm a pediatric medical assistant.

Awesome.

And I'm in sales and packaging and have a little motorcycle business on the side as well.

Like it. Very cool. $255,000 over six years. What kind of debt was that?

Well, it was a house and a pickup truck. Yeah!

Everything!

100% weird people.

No debt at all. Wow. Look at that house. Wow.

What's this house worth?

Probably about $450,000..

I don't worry.

Today's market, I guess.

Very good. How much did you guys nest egg in your retirement?

A little bit over $300,000.. We're chugging.

Heading towards millionaire. Way to go. Good job, you guys. Good job. So what happened that?

Well, we want to go back just a little bit further. We started our marriage 33 years ago. Oh! We didn't have much financial sense or direction, but, Dave, I saw you on, Oprah.

Wow!

In 2000?.

Yeah, way back.

2005.. Yeah. And just your, obviously your truth and your demeanor. I had to share it with Jared and we definitely used your tools to, you know, take us along the way, but we really got serious the last six years. Wow.

Yeah. Way to go. Way to go. Very cool. Yeah.

I remember Jen saying, you got to listen to the Southerner. He's pretty funny. You're going to like him. But I went down the stairs to actually purchase the program. We watched it at 1030 at night because they would run Oprah twice in Chicago.

He's for real. You don't need your money. Yeah. I like it. Good for you guys.

So I got to travel around with the CDs, just kind of pipe dreaming what it would feel like.

And now here you are. Not a payment in the world. Amazing.

Amen and amen. So what made you kind of turn the switch on six years ago? Like what made you go from 2005?? I hear this message. I like it.

I love it. Way to go. And Jennifer can't quit grinning. Right?

She surprises everybody.

She's just loving this version of you and this life she's living.

Amen. Amen. Amen.

Very cool. Very cool. That's good stuff, guys. That's very good stuff. So when someone's listening to this and they say, how do you get your house paid off at 54??

Well, the budget, you know, is a big thing. We actually contacted the kids this morning because they've been in the backseat. Now they're all adults. And listen to say, hey, what was it, Dave Ramsey, what did it look like for you guys to see it? You know, kind of growing up, and they're 30, 28, and going to be almost 26..

There we go.

So it really was, you know, the cash, cash hurts or cash is freeing. And it was kind of funny. on the way over here. We came across the mountain. We stopped at Cracker Barrel.

So it was funny.

Super blessed.

Very cool. Good job, you guys. I'm so proud of you. Thank you. Well done.

There you go. There you go. Well, one of the things my son said that I want to encourage you with, he says, he's my oldest. And he said, Dad, what I really appreciate about Dave is, you know, he makes it practical. It makes it easy.

Wow. I love it. Well done. Very cool. Very well done, you guys.