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Live from the headquarters of Ramsey Solutions, broadcasting from the dollar, Carl. Studios, it's the Dave Ramsey Show where Ned is known as the king. The paid off home mortgage has taken the place of the BMW as the status symbol. I'm Dave Ramsey, your host. Thank you for joining us. Open phones late eight to five five, two to five. Anthony O'Neal Ramsey, personality number one, bestselling author, is my co-host today. You're on the air again.

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The number if you want to talk triple eight eight two five five two to five.

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Starting off this hour is Jose in San Diego.

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Hi, Jose. How are you? Hey, I'm doing good, how are you doing? Better than we deserve. What's up? So kind to explain my situation. 20 years old. I don't pay any real live with my parents. I'm working two full time jobs, making about three hundred a month now, only pay about five hundred dollars in bills. And I'm kind of stuck into what to do next. I don't have to pay off my car back or save up more money.

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If I'm just I'm wondering, what would you guys do in my position?

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How much you have a car, how much are you paying a month for your car? I pay 192 a month. How much is on it? 200 instruments, how much, how much to own a car? I owe 8000 thousand, all right. And then how much do you have in your bank account right now in your savings?

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I have five thousand seven hundred five thousand seven hundred dollars, OK. All right. So so there's two things at that that I'm seeing here. Hosie is one. You're living at home.

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You're not paying any rent at 20. I'm not too too upset with that. But I am kind of having some concerns that you're not trying to really start practicing how to become a young man. And then the other part of it is you're making 3500 dollars a month and you have a Carno.

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So if you're going to be home living with parents, you know, without no bills, you should be 100 percent debt free and building towards that. So the very first thing I'm doing with my money is I'm paying off all of my debt. Yeah, that's a very first time. No issues, no ifs, ands or buts about it, because you're in a position that a lot of 20 year olds are not in, you know, so that's the very first thing.

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Pay off your debt. But where you are career wise now is this where are you going to be at for the next four or five years? Is this a career destination for you? No. So I got the second job because I dropped out of college because my college turned to online only and planning to come back when it's on campus. And for now, I just want to save money until school comes back. And that's my plan. Great.

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What are you going to study? What are you studying in school? I want to do nursing. Good for you. OK, so here's your go, Anthony. Right. Knock the car out and pile up cash to pay for college. Pretty simple goal, OK? How big a pile of cash can you possibly get to go to college as big as you possibly can have? I want you. I'd love for you to have 100000 dollars, Polda.

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Absolutely.

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And you can do that easily depending on when you go back and how long you work and all that. But I mean, first the first next two months, you can pay off the car. Yeah. Then after that you can put 4000 bucks, 3000 bucks aside. That's 40000 dollars a year. Yeah. And you can have a pretty stinking good pile of money and pay cash for college when you go back.

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I think that's and you get a nursing degree and it's paid for in cash. And all the while you were driving a paid for car.

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Dingding life is good nowadays Dave as a father and I could be wrong here because I'm not a parent so I'm asking a father 20 years old. Are you charging me rent. Kind of. When I went back home my dad said, Hey I'm not going to charge you a lot but you only give me something to stay here. Yeah, well I mean, you had a little bit of a different story.

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I did. So he's bringing you back in after he kicked you out? Yes. And so he set in a tone with that. And I might have done that exact same thing in that setting now. So but like then he stayed with us for three months after college before she got shut up in her new apartment. We didn't charge her. Got you. But the rent was that she can be on a budget. She's going to live under our rules, under our roof, and she's going to get some money to get ready to move into that rental.

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And so behaving in an adult way that has a good trajectory is good enough for me. Gotcha.

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Gotcha. But this young man here, I would let him stay there rent free.

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Absolutely. Knock that car out. Pilot pay cash for nursing. That's a good.

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This kid's going somewhere. Yes, he's he's a sharp young man.

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I you know, now if it looks like he's camping out, I'm on make get uncomfortable but started area.

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Right. Right.

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I won't make it too comfortable around here. So because we do want you to leave. Yeah. You know, I love the old picture, the analogy and it is a fabulous one. The the eagle builds a nest out of thorns, out of thorns from the thorn bush that long thorns like three, four inch big thorns and the when they build the nest, they point the thorns into the nest and then they fill the nest with down so that it's perfectly comfortable and the thorns aren't touching anybody.

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And the little baby eagles are born.

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And then as they grow, the mother eagle starts pulling the stuff out because she flies and it gets progressively uncomfortable to stay in the nest because when you jump out of an eagle nest, it's on the side of a cliff.

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You have not flown yet.

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You have two choices splat or flight.

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And so it has to be uncomfortable to want to leave in that situation. Yes. Right now, I'm not suggesting you splash your kids. That's not my point.

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Right. But this idea that it's comfortable as and protected from predators as it should be. And then as they become young eagles, yeah, you start pulling that stuff out and you make it progressively uncomfortable until they make the leap and they spread their wings.

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I love it because an eagle that does not leave the nest is later known as a turkey. I agree.

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I agree. And I asked that question, Dave, because, you know, when you look at the student loan situation, we look at the mindset of today's millennials. I don't think it's just a student loan crisis or is all a millennials. I think it's a parenting is. Yeah, yeah. And so is like I think you have a lot of parents. Hey, you're 30 years old. You're 35 years old. You can stay here and not have any kind of responsibility.

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So that's why I want to get to where I think that's a different thing than a 21 year old or 18 year old or I mean, if you got an 18 year old and they're going to live at home and they go to college debt free because I don't have a dorm bill, hey, all day long, I'm not charging them. I want them to do that. Yes. Yeah.

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So again, that's how they're engaging in something, though, that is good for their future. So we're helping them in a different way.

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But the so the purpose for charging rent, as far as I'm concerned, is the pulling out of the down to make it progressively uncomfortable.

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Yes, but if we need someone to stay comfortable to get the goal accomplished, then I can let them sit there for a little bit.

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Yeah. So and you know what my dad did with that money together? He gave it back to me. Yeah, that's that that's the guy that that guy is. And he's he's a great guy. He's a world class dad. I was so upset. I was like, I got to get the money. He said, you would have spent it.

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Well, there you go. But I mean, a lot of parents do that. That's not unusual. Say you're going to pay me this and and then they, you know, gift it back to them later. But they wanted him to get the habit of paying rent. And as you said, as a young young man, to start your step into your manhood, you start taking on your own bills. Yes, but in this case, we're going somewhere with what Jose's doing.

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And he's got I think he's got a great trajectory. Brilliant. So very well done. All righty. This is The Dave Ramsey Show. Technology and innovation are crucial for any company's success, but the primary focus should always be on you and meeting your needs.

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Now, folks, I know things have been a little rougher this year. To say the least, and some of you got your emergency fund tapped, it's getting low, some of you cashed out your 401k.

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You shouldn't have done that. The government passed a stupid bill. I mean, a stimulus bill. And they lowered the 401k early withdrawal penalties, so people were doing stupid stuff like taking money out of their retirement, that's dumb. Don't do that. Did I mention you shouldn't do that? It's there for one reason and that's for retirement. The only time you should even think about an early withdrawal is to avoid a bankruptcy or a foreclosure if you've already withdrawn from your 401k.

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You can still put yourself on the right track to retirement. What you need to do? You need to have somebody on your team go to Dave Ramsey, Dotcom Schleiff, smart investor, and we'll help you find someone one of the smartest or pros in your area. You select which one you want to deal with and it changes everything. You get somebody in your corner that's telling you what you can do.

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Open phones at eight eight two five five two two five. That's eight eight two five five two two five.

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David is on the line in Chicago. Hi, David. Welcome to the Dave Ramsey Show.

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Anthony, thanks for taking my call. Sure. How can we help you? I'm looking to make a luxury purchase and I'm behind this purchase for a very long time. And I finally got a call from my wife, and she's on board now and now I just want your input to see if it's justified financially for. And it's very clear they're looking to buy. What kind of car is the. It's a train service in Rolls Royce to. OK, what's it cost if that's worth 1000 dollars?

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How much has said two hundred twenty thousand turned 20000. OK. What do you what do you make of here? Combined with my wife, we make five hundred fifty thousand, OK? And what's your network? We have about twenty two point four million dollars and. That includes some of our house, too. OK? And then two million dollars in the mutual fund. So your net worth is about 2.5 oh, 2.5, OK? And we do have about our house is worth seven fifty thousand, but we still have 300000 remaining on the mortgage.

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Hmm.

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OK, any other debt has had you shouldn't, but I just got to ask a question. No. OK. Well, the rule of thumb is you shouldn't have items that are going akaash items, things with motors in them, a total up more than half your annual income. This is close.

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And obviously these numbers are ridiculous for most people. They don't face a half million dollar income and they don't face a 200000 our car purchase. I. I wouldn't do it until I paid off my house if I were in your shoes. OK, but I don't think that I don't think the car is completely ridiculous. Yeah, it's it's close. I mean, it's kind of on the bubble. How much money have you got in savings?

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Not counting, returning. Savings, we have about 200000. OK, and you don't have any money other than that, that's non retirement money, you have investments that are non retirement. Just a house. Yeah, but you don't have a non retirement mutual fund or stock portfolio or something like that.

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No, no. So we go by the two hundred thousand dollar car, got no money. Yeah, you have no more cash, right? No emergency fund. It would just be the 200000 like you would have no you know, no emergency fund if you bought the car. You mean, oh, no, no. Yeah, so no, no, you don't buy the car. Yeah, no, this car is not an emergency.

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So out of the 200000 you have in savings, if I were in your shoes, what would I do? I think you need to get this car someday.

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Yeah, but I don't think you're going to get it in school. And I don't mind. I mean, I think you're probably going to end up making more money and saving more money. You've done a great job. You have a fabulous net worth.

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But driving that car and having zero money in the bank is unwise. Right. So I want an emergency fund sitting. There are three to six months of expenses. That sounds like 50 to 75 grand, which leaves you a hundred a quarter throw at your house. I'd knock my house out this year, be done with it, and then I'd save up and pay cash for this car. Next year, yep. That's why I say you can do that next year will also pay off the mortgage.

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Yeah, I want to pay off the mortgage. I have an emergency fund in place. And because here's what amounts to David. OK, this is a toy.

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Yeah, right. I've got some toys.

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I own several automobiles. I love cars, too. I'm a car guy. Some kind of salivating over this purchase with you. I think it's a very cool car that you're talking about. But you want toys to be where you don't financially notice them.

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Mean like if I just set fire to that much money in my driveway, would I still be OK the next morning? That's what I mean by not financially noticing it. And if you set fire to 200000 in your financial situation sitting in your driveway, you would notice it because you'd have no emergency fund and you still have a mortgage.

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And that's that's what that's how my thinking works, and so we work with a lot of uber high end earners, some of them well-known people, some of them not some of them athletes or music people or whatever. And sometimes people have trouble enjoying their money and then sometimes all they do is enjoy their money.

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And so. But like I was with a guy the other day that was he made 15 million dollars last year income and he bought a 400000 dollar car.

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Now that he can set fire to that much in his driveway and not notice, when you make 15 million, you can buy 400000.

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Right. And so but you're not quite at that mark yet. And I want to get you there to where? Because let me tell you what I'll do from someone who's done it, OK? It will increase your enjoyment of the purchase when it is not putting anything at risk. Yeah.

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When it's when it doesn't even show up on the emotional bubble, it will increase your enjoyment.

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I love that. I can't wait for that day.

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Well, you are enjoying it. You've got a lot and you've done some nice things. You've been on some nice trips. You've got you know, you've been making a great income. And so you've had the same thing. It's just what what makes it hard to process these things are the emotions.

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Because when you start, you know, because you start going to 10000, I mean, you can't needs 200000.

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That's what starts going through your head.

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No, I don't need it. But I did what I wanted. But, you know, and some of the other sort of stuff you and I do. Yes.

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Other people do is, you know, it's just a zero. Oh, yeah. It's all it it's just a decimal point to zero.

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So but what you want is you want ratios on items that are not producing wealth.

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Yeah. To be small. Yes. And then you can enjoy them. Yeah.

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No, you're absolutely right Dave. I mean when I went and purchased my my first dream car here a few months ago, it felt so good to walk in there, pay cash, leave and not think about did I make the right decision. Yeah. Like I was stressed. I still had a large savings account. I was still I mean, it was it just felt so good to do.

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And I said, Dad got a nice car. Yes. That should drive a nice car.

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It's so beautiful. And so wasn't one a cheap car? No, sir, it was. But you're in a position that you could do that and it didn't it didn't cause your stomach to get tight and cut your throat to get tight.

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Not at all. You know, or in it shouldn't, you know? And so that's the measure. It's not of a there is no amount of car that is immoral. Yes, there is no amount of car that is moral. There's no amount of car that makes you unspiritual. And that God doesn't love you because you bought an expensive car that does not exist.

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Yes, but there is a there but but what indicates whether you're off or not, is have you put yourself in a position you cannot be outrageously generous. Have you put yourself in a position that you're living on the line, you run on razor's edge? Yes. Then that's that's unwise. And if done in an extreme, you put your family at risk. That is immoral. Yeah. Those who don't take care of their own household first are worse than an unbeliever.

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So, you know, and so but but some of you are out there judging everybody else's stuff, some of you judging him right now. And you need to get back to Minding your Own Business. This is The Dave Ramsey Show. Most home security companies try and trap you with high prices, tricky contracts and lousy customer support, simply safe, on the other hand, has everything you need to protect your home. With none of the drawbacks of traditional home security, professional monitoring keeps watch ready to send professionals if there's an emergency.

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All this starts at 15 dollars a month. Tried today. That's simply safe. Direct dotcom. You get free shipping and a 60 day risk free trial. In the lobby of Ramsey Solutions, Jonah joins us with a question. Hi, Jonah, how are you? Hi, Mr. Ramsey. Thank you very much for taking my question. Sure. What's up? So in a little over a week, I'm going to be starting my college experience and I'm in a very fortunate position to where I'm receiving 100000 dollars towards my college cost.

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Way to go. Thank you. However, through a number of merit aid scholarships, that four year total is going to be about 50000, meaning the residual is kind of up there. And that's my question is in the four years that I'm in college, what should what should I do with that 50000 that remains?

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Where are you going? To school at Ole Miss. What are you studying?

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Chemical engineering with a potential double major in Mandarin Chinese, of course.

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My goodness gracious. Wow. Okay, that's fun.

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Well, here's the thing, Jonah. You are. The amount of money you could make investing 50000 pales. In comparison to what the. To what your degree is worth? In the marketplace, so you are a better investment than a mutual fund is now granted, we don't need that 50000, we don't think, for you to graduate now without debt.

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But if the merit scholarships drop, for some reason, there's 50000 sitting there, not invested is are not trapped in something is worth more as an insurance policy on you getting through school without that then than any amount of money would make.

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So let's say it made 10 percent shrink.

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So you'd make 5000 bucks, OK, and so you'd make in four years you'd make 20 grand. Correct. Which isn't spit compared to what you're going to be making. Absolutely.

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Absolutely be my hope. Yeah, I think that's fairly predictable with you, sir.

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So the you know, what you could make on that is not as good as making sure you get through debt free.

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So if you want to just park it in a mutual fund or in a money market account, you can if you wanted to put it in a low risk, low volatility, mutual fund of some kind, that's fine.

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But you could still lose some of it. I would not put it into a retirement account. I would not put it into a super long term thing, because then you're going to be tempted if you get in a squeeze to borrow instead of using that money. And again, you're the magic sauce. Not investing, investing long term will become the magic sauce, but it'll come from your income that you're going to create.

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So pretty incredible situation you got yourself into. Thank you, sir. This is neat.

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Your mom and dad did a great job, obviously without much merit scholarships. You did a great job.

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So those are academics. A lot of them, yes. Yeah. OK, very cool.

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So what is the deal with the Mandarin Chinese? You want to go on the mission field or something? No.

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So that's actually through a federally funded program at Ole Miss, this flagship Mandarin program. And so I've studied Chinese since middle school. And it just so happens that as I was searching for college, that program popped up and I was able to go there, visit them, and at a really good impression. And it seems as if they had a good impression of me.

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And so but I mean, you didn't have there wasn't like mixing that with the chemical engineering in some way that you had a certain goal. It's just you've enjoyed the language. Exactly. Oh, OK. All right.

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That makes it makes sense. I thought maybe the two together were taking us somewhere. I didn't know what you were doing. OK, might might be international business of some kind, but.

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Wow. And what a great language to know in today's world to so very cool or sharp young guy. Man, thanks for coming by very much. Open phones at eight eight two five five two two five. Yvonne is with us in Baltimore. Hi, Yvonne.

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How are you? Hi, Dave. Thank you for taking my call. Sure. What's up? Right now I'm in a mess because my mother I had to stop working because my mom contracted dementia. She went to the hospital herself for surgery and came up with dementia. She needed full time care. So I'm retired. So I had to start working to take care of her. And when I stopped working, I lived on credit cards. Since then, I have racked up eleven thousand dollars worth of credit card debt and I'm trying to get it together.

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So I called Consumer Credit Counseling Nicholsons debt negotiation program, and I'm just not comfortable because they were a lot of money. They you know, they try to give you a plan, but still they're making a lot of money off of me. I caught one guy up a national debt, Amy. He said they can help me cut fifty percent of the debt. Are you current and thousands are you current? Are you current on these bills?

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I, I'm not current since Korona. I was doing monthly payments up until Korona. So you're three months, three months behind break, right.

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Exactly. Probably now. Five months behind.

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OK, I paid everything up until March, OK, because that's the way these things work is they don't they have you not pay the bill and then they go in and try to settle in bulk, settle with a lump sum. So give me an example of one of your credit cards. How much do you owe on it?

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The highest one would be Capital One. It's 5000 dollars.

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OK, if you are five or eight months behind with Capital One and you call them up on a five thousand dollar balance and you offer them to, they'll probably take it.

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Oh, really? And that's how these programs are also like that. That's how these programs work. Yeah, they take the money from you monthly until they have 2000 saved up after they talked it all their dadgum fees out of your ear.

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And then they then they take the 2000 and they offer it to Capital One to settle it. And I guess what that does, what that messes up your credit, but your credit's already messed up.

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My credit is already jacked up. Right. So I'm trying to get it back together. Yeah.

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So you can work the exact same program with no fees. It's a hassle.

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And you're going to talk to some mean people called credit card collectors and you're going to have some arguments to work your way through it. It's not one phone call done, but.

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Right, but but you can work your way through. This is only 11000 dollars. When are you going back to work? I don't know, my mom is her dementia is progressing, is really progressing, and I don't know, I don't know how are you? How are you keeping the lights on and buying food?

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I have. I'm retired and I get a small pension.

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How much? I get after taxes and health care, I get about fourteen hundred dollars and then your mom's Social Security. My mom, the case, she gets about 600 dollar Social Security, so we have a 2010 budget. The two of you live in there. Right, OK. And then my mom has a lot of bills that aren't getting paid either. Right. OK. That's why I said I'm in a mess.

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Who's paying the rent? I have so much going on mentally that I just want to pay one bill and consolidate everything. That's what I can't afford to do anything right now. Yeah.

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By the time I eat and keep the lights on and pay your house payment or mom's house payment because you can't be evicted right now. You're done with you're out of money, aren't you? Yes, always in the negative. Yeah, no. I just don't know where to turn. So you're running full time care with her? Yes, ma'am. Baby girl, you got your hands full for sure.

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So I do say a prayer for me. Well, I will. So if mom's dementia does not turn around, it will probably eventually result in her passing, is that correct? I hate to say it, but yes, yeah, I'm sorry to say it. Yeah, I'm trying to think I'm trying to see where your future is. And I don't I don't want to be cold about that, I'm trying to figure out when it is you can get your income back to be able to address these issues.

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In the meantime, I think these credit cards are just going to sit on the sideline till you tell until you're able to get your income back. OK, because I want to go back to work, I just can't. I know I work now. I was I was I knew being lazy, horny, right? I know. I know. I want to go back to work. But at this point. Yeah. Mm.

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Well what I'll try to do is call some of the credit card companies and see if they'll work with me. If you had you have any money saved. No, no money.

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So you're not going to work with you then. You don't have anything to offer them. Right. That's what I'm saying. Yeah. You got to have something to offer them before you can get settlements done. But when you get where you can save up, scratch up a little money, then then we can go there. So. Wow, I'm sorry. Yeah. Hold on. We're going to put you in Remzi Plush while you're at home there, and that'll get you through Financial Peace University and get you on a budget and help you walk through this.

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We'll walk through this with you. We'll pay for it. This is the day Ramsey Show. Uh. Our Scripture of the day, proverbs for 25, let your eyes look directly forward and your gaze be straight before you.

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Martin Luther King Jr. said if you can't fly, then run. If you can't walk, if you can't run, then walk. If you can't walk, then crawl.

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But whatever you do, you have to keep moving forward. Our Question of the Day comes from Blind's dotcom, they have a 100 percent satisfaction guarantee means even if you measure you picked the wrong color, they'll remake your blinds for free. You get free samples, free shipping. And with the new promos they run every month, you'll save even more. Here's the promo code, Ramsey to get the best possible deal.

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And today's question comes from Anita in Florida. She visits Dave Ramsey dot com to ask why interest is five percent on two of my federal student loans of 83000 dollars I consolidated when I graduated.

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I could qualify for two to maybe three percent mortgage loan. Would you recommend I refinance my current mortgage for 15 years? Same as I have left in added an add to it my current student loan. I have 100 in 1000. I was left to my house. My student loan repayment is for 25 years. I've been paying for 12 years and it's just not going down and keeps restarting when trying new programs currently in an income based repayment plan, I don't see an end goal.

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Well, here's the thing I need to know, OK, I'm not going to recommend that you add debt to your house, OK? This means you're going to go back to baby step number two and not go back. You're going to stay in baby step to number two and you're going can get aggressively attacking your student loans. Now, if you can verify your interest rate your home down to fifteen years with something you have that left and a lower interest rate, I don't know if she has fifteen years already on it now.

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She's fine. Yeah, that's what I'm saying. Think about that now you're fine.

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But no, I do not want you to reify to put your student loans on top of your mortgage. That is a foolish move in my opinion.

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Yeah. The student loan is forgiven upon death of a federal student loan is a federal student loan is forgiven upon disability. A mortgage is neither of those.

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Yeah. So you lose those two benefits when you move it to a mortgage, plus now you put your home at risk for an additional 83000 and a foreclosure is what happens if you don't pay that now that the. So Anthony Anthony's first instincts are absolutely correct.

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They're the. Thing I don't like what I'm hearing is 25 years, and I don't like hearing that you're on an income based repayment plan. And so what I would challenge you to do is say, OK, this is 83000 dollars.

[00:33:00]

We don't have much information about your current situation, like your household income, but we have people do debt free screams every single day on this show. Who paid off more than 83000? Yes. So it sounds like you may have an income problem.

[00:33:20]

And so what I would concentrate on is extra jobs and or career changes, shifts and what can we do to get your income up to where you don't have a 25 year plan, where you don't have an income based repayment plan?

[00:33:36]

Because here's the thing, 42000 dollars. So, what, 30 hundred bucks a month for two years and you're out of debt.

[00:33:49]

Now, that's a lot of money if you're not making any money, but if you changed your income and you know, young man we had on the air a while ago, go in a different hour, get paid off 47000 in 13 months, he was making 78.

[00:34:05]

And when he started working on this, he started working on his career and he got his income way up from 78 up to 125. And then he paid off forty seven thousand dollars in 13 months. Do that two years. And that's 83000, right?

[00:34:19]

Yeah, I guess. And Dave, she graduated from college, so I'm thinking she's making no less than 45, 50. Well, we don't know what she's doing.

[00:34:26]

Yeah, we really don't. We're guessing. But I guess I am guessing also based on the hopeless sense of 25 years and the hopeless sense of income based repayment and the hopelessness of those two things, I mean, I'm going to be in debt my whole life. We have to break that in the way we break that as we start putting 3000 dollars a month on this. And you are done in two to three years. Absolutely. And that's from extra jobs and or career changes.

[00:34:49]

I think this is more of an income based problem, income based problem and mine based budget. Yeah, yeah. Budget in mind. I was there last and it says I don't see and I don't see an end goal. Yeah. So you have to see it before so you can believe it when you believe it. Now you get on a budget, now you get your income up.

[00:35:07]

Well that's exactly the way to work. Yes, sir. So but.

[00:35:11]

You know, it may mean that, you know, I talk to people all the time and my masters is they they took a position in a career field or they took a position, say, for instance, I talked to a lady with an accounting degree which has the ability to make 60, 70, 80000 hours a year.

[00:35:32]

But she wanted her heart, what she wanted to work for a non-profit. And so she's making 30000 dollars. Well, she's underutilizing her income potential. And so that choice is what has her trapped. Yes. Yes.

[00:35:45]

She can clean up the student loans and then work non-profit or she can clean up the student loans and work and volunteer at a non-profit while she keeps an eighty thousand dollars a year job.

[00:35:55]

Yeah. You know, and volunteer on the side for that, that kind of a thing. So what you've got to do is you just have to think through what choices have I made that have put me in this situation?

[00:36:04]

I almost always can find some way to help you get your income up. And that is half of the equation. It's income and outgo. These are the only two parts of it and is with us.

[00:36:14]

And Ann is in Atlanta. Hi, Anne.

[00:36:17]

How are you? Hi, Mr. Ramsey, how are you? Better than I deserve. What's up? That 38 years old just got married four months ago and has very little money in my retirement. He doesn't have a retirement fund. My daughter is coming to our last semester in college and I'm facing seventy thousand dollars of purwanto loan debt. I don't know if I should focus on the phone too long, that put a pause on the traction I was making with my retirement fund.

[00:36:53]

I have a Roth IRA and I contribute right now five hundred dollars a month to that IRA, just trying to get back on track with retirement. So I just don't know what direction I should go in because retiring with no money frightens me. Good.

[00:37:08]

That's going to make you do some about it.

[00:37:11]

So once your household income, now that you are married.

[00:37:16]

Sure, good question. So I make one twenty five the year he is a self-employed, but he relocated his home renovation business to Atlanta to marry me. So he is starting over.

[00:37:30]

What did he make in his old city last year? Sure. Last year he made one hundred thousand dollars.

[00:37:37]

OK, so he'll be back there pretty quick. He knows how to do that. So you're going with two hundred twenty five thousand dollars household income. Hopefully you will. So how can we not pay off 75000 real fast with that? Now that you say that what I think is going to be Lebanon, I mean, once his income comes up and as his income is coming up, I mean, like, for instance, this year, if he made zero.

[00:38:05]

And you paid off 75000, 125, minus 75 in that 50. Yes, yeah, OK, 125 minus 75 is 50, and so you could live on 50000 and you'd be debt free in one year. And that gives you plenty of time to build retirement with the 200 and some thousand dollar income going forward. OK, because I've been very fortunate. I've kept my, like, credit card debt is only 5000. I have a car is only 4000 left on the cause.

[00:38:39]

I've been keeping that debt as low as possible.

[00:38:41]

Now you need to clear your debts because that's your shortest path to wealth. OK. And so we teach you to work the debt snowball and be debt free, everything but the house first, right, Anthony?

[00:38:54]

Yes, sir. Everything but the house first. Go ahead and live from smallest to largest. So get that cleaned up and you'll be all right.

[00:39:02]

You get what?

[00:39:03]

I'll send you a copy of the book, The Total Money Makeover as a wedding gift. And it'll show you exactly what to do step by step.

[00:39:09]

That'll get you going. Anthony, good job today. Thank you, Dave.

[00:39:12]

That puts us our The Dave Ramsey Show in the books. We will be back with you before you know it. In the meantime, remember, there is ultimately only one way to financial piece, and that's to walk daily with the prince of peace.

[00:39:24]

Christ, Jesus. This is James Childs, producer of the Dave Ramsey Show. On your smart speaker, you can add our skill by saying, Alexa, open the Ramsey network skill. From there, you can listen to all our shows. Ask Dave money questions like how do I invest my money or what is the debt snowball? Find out more at Dave Ramsey. Dotcom slash smart speaker.

[00:39:58]

Feel like you're in a rut and living life. Just going through the motions. Build confidence in yourself and learn to trust the God who created you. Check out the Christy Wright Show, where Christy inspires you to break through your limitations and create the life you're proud to live. Hey, all, I'm Christy, right? You know, it's so easy to feel stuck. You live life just going through the motions, doing dishes, doing laundry, carpool lines and a whole list of commitments that bring you no joy.

[00:40:26]

Why do we live like that? That's why I want you to check out the Christy Wright Show. Each episode will help you build confidence in yourself and the God that created. You hear more from the Ramsey network, including the Christy Wright Show wherever you listen to podcasts.

[00:40:43]

Hey, it's James, producer of The Dave Ramsey Show. This episode is over, but check the episode notes for links to products and services you've heard about during this episode. Thanks for listening.