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[00:00:25]

Live from the headquarters of Ramsey Solutions, broadcasting from the Dollars Car Rental Studios, it's the Dave Ramsey Show where debt is dumb. Cash is king in the paid off home mortgage has taken the place of the BMW as the status symbol of choice. I'm Dave Ramsey, your host, Rachel Crooge Ramsey, personality number one, New York Times best selling author. And my daughter joins me to answer your questions as my co-host today, the phone number eight eight two five five two two five.

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That's triple eight eight two five five two two five.

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Caitlin starts this hour in Atlanta. Hi, Caitlin. How are you?

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Hey, good, how are you doing? Better than I deserve. What's up? Could I just have a quick question to you on behalf of my mom? So I have a 19 year old brother, and he recently he was living with my dad in a different state. Now, let's back with my mom. He's not really on a path to college. He says he wants to go to college when he can pay for it, you know, out of pocket, which is a good thing.

[00:01:37]

But I don't know that he has a realistic idea of where he will go. But he's he's made bad choices. He just has a small job right now, not making too much. And he does help out. He pays for gas. He pays for his groceries and that type of thing, that he's not respecting her just as far as how she would like him to live while he's living under her roof. And I just wonder if you had any advice as far as how I could help her or how she can set some boundaries for him to live under her roof.

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This is how she expects him to behave and how maybe I could just help him with them preparing for his future. He doesn't seem to have much of a plan. Mm hmm. So I would say, Caitlin, is he being, like, belligerent towards your mom or he's just out partying and it's just he's just being irresponsible or he's just not driven what's like not really driven as far as what the word will?

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And I think he said, you know, if he's. Kind of going off with girls overnight. He would rather have not. And there was actually a situation where he had a girl litigative who filed a restraining order against him. And they're actually they've gotten a lawyer for this and a family friend actually paid that lawyer and he's paying them back, which I don't believe was a good idea in the first place. And he's just paying back like two hundred dollars a month and the lawyer with twenty five hundred.

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But yet he's going off to the beach for the weekend with another girl against someone's wishes, obviously, you know, decisions like that.

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Yeah. And as your and as your mom is tore up about it as you are. Oh, that, yeah. OK. OK, so she says she yes, well, for sure. For sure. Some people just have a higher tolerance. She's not that worried. But you're the concerned sister. I didn't know how on board your mom was with that because. Yeah, I mean, I think it's totally fair for your mom to set boundaries.

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Is 19 years old. He's living in her home. And for her to say, hey, this is what I expect, X, Y and Z. And if you can't do that, then I'm going to be able to support you in this way.

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I think that's I think we know why he left his dad's. Don't we? Caitlin, I'm sorry, what did you say? I said, I think we know why he left his dad's house.

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Oh, yes, I think so.

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There were rules there that were enforced. Mom is not doing that. How old are you? And twenty nine. How many siblings do you have? Just one. OK. All right. Well, I you know, number one, you can't make either one of these two people behave. The easiest one to convince is not brother, it's your mother.

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And the thing you need to convince your mom of is that she needs to give him a new place to live. He needs to move out, right? He has an answer, 30 days to look for a place and he needs to move out. He's 19.

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He can make it right. And I think what's with that? And I've said that I think with that, I think, you know, she's concerned how we pay for that so well and. Right. He'll figure it out. Right.

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Or he can straighten up. But as for me and my house, we're not hopping around all over the country. You have to you have to stay. You know, you could, you know, quit dragging girls off the beach while you got a freakin restraining order, which you don't even defend that start with. The way you defend a restraining order is you restrain yourself from going near that girl again and then you don't have to pay any legal fees.

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It's not a problem. You need twenty five hundred dollars worth of legal crap. You just don't go near her again.

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Well, kind of like her dad, by the way. Yeah.

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And I think the hard thing in this situation, Caitlin, is you're you're the removed party, right. So you can have a conversation with your mom to do and you see your brother. But at the end of the day, you cannot control either one of them. Right. You can control how you're how you're dealing with it, the boundaries you're setting for yourself. But help in giving your mom advice, give her some tips, give her guidance, give her permission to say, hey, mom, listen, he's walking all over you.

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He's 19 years old. He's got to learn to grow up like he he needs to learn how to do this stuff on his own. And sometimes just getting kicked out of the U.S. forces you to do that. Otherwise, you know, there's there's a little bit of the enabling situation. So he has just two choices. One, he can just go out on his own right now. Or number two, if he chooses to stay, then here are some things in place, you know, of what your mom needs.

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By the way, the things your moms are upset about are not affecting your mom. She's upset because he's messing up his own life. It's not because he's messing up your mom's life. She only reason she's upset is she loves him, right? The only reason you're upset is you love him. And so let's just love him better enabling when someone allows misbehavior to go on and we call that enabling is done by the nicest people on the planet, enablers.

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Your mom is a sweet, sweet person.

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Oh, yes, very much. Yeah. I'm going to send her a pint of my blood.

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I'm just I'm kind, but I'm not sweet.

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Right. And so, you know, if you're going to live in my house, you're going to do it my way because I love you and I want good things for you.

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And your mom is doing harm to your brother when she realizes that by allowing this.

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And when she realizes that she'll stop doing it, so pick up a copy, go jump on Amazon right now and buy Henry Clouts book boundaries, buy two copies, shouldn't one.

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I've got it. OK, then you only get one copy, then you only need one copy.

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Send a copy to your mom because Henry does one of the most gentle and kind non-active methods of describing what good boundaries and how they're healthy for everyone involved and how it is an act of love. It's not an act of, you know. Well, that's tough love. No, that's just love. When you when someone's on a track of self-destruction and you can help get them off that track by putting some boundaries in their life, making putting some speed bumps, some fences up, then you are loving them well.

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Thanks for joining us, America, Rachel Pru's Ramsha personalities, my co-host today here on the air, open phones, a triple eight eight two five five two two five. Heather's with us in Topeka. Hi, Heather. How are you?

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I'm doing good. How are you? Better than I deserve. How can we help? OK, so I'm an incoming freshman at a public university and I'm trying to figure out how to find funds. Well, not necessarily find funds, but manage my money to college so that I can graduate debt free.

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Good for you. That's a great question, Heather. How much money do you have saved right now?

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Well, my parents have been saving. They've been very, very, very gracious. And I am so lucky to have them. I have quite a few different funds. I have CDs, mutual funds, EFA and a savings and checking account total that is up to fifty nine thousand dollars. I will come. This is like coming up soon because my car is starting to die and I'm trying to figure out how to cash flow. What's wrong with your car?

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Well, so it's an older car is a thousand miles on it. I mean, you're you're cutting out. It's got how many miles of. Hundred and eighty thousand, typically, that's not a lot, but we took it to the. Like to a walk, to a shop, and they said it cost fifteen hundred dollars to fix it. So what's it worth? It's it's not worth that much. OK, so you wouldn't fix it? I don't care.

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So we're not fixing it.

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So how much at the school cost? Well, with all of the scholarships, I think the first semester will cost 5000. But that's not going to like I have to go to school for seven to eight years to be what I want to become.

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What are you going to become? Either a surgical nurse or a nurse anesthetist. Hmm. So I have to get my four year bachelor's degree and then go back to school for either anaesthesia or just for other certifications. Mm hmm. OK. Have you mapped out what all of that is going to cost? No, I just thought, well, I didn't even really get how much it's going to cost this semester, starting in 10 days. So I think the balance this semester will be 5000, but it'll kind of go to the car, you know, are you able to live at home and go to school?

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I can, but I'm in the orange program. They want me to live on campus with the honors students.

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Yeah, I want you to do but you don't owe me money. So it's not really an option. You want to be a nurse, Anestis, you don't want live in honors dorm. Yes, one one's a high calling. The other one's not. So because they want to pay for it and if you can live there for free, that's fine, but I don't think that's what they're offering, is it? No, it's only a hundred dollars.

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Yeah. But it cost you how much to live in that dorm. Ms. Well, total costs. The dorm, I'm not sure the dorm is probably with the food meal plan is probably close to 10000.

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Yeah, and so and you can save 10000 dollars by living at home. Yes, yeah, done ding. OK, we just move that money, all right?

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And so you're going to sell your junky car and you're going get you a little better junky car. But not much better, but not much better. Two thousand dollar car, I mean, in case your dad and mom aren't walking you with it, walking with you on this. Let me tell you what kind of 2000 other car to buy ugly.

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But very reliable mechanically. OK, so, yeah, that's the problem with mine. It's not mechanically sound. Yeah, one of my buddies picked me up the other day to drop me off at the shop in Big Red. Big Red is a 1994 Granada land on more land yacht.

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OK, 22000 actual miles.

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It had been sitting in his grandmother's garage. It is pink. It's not really red because it's faded. It is the ugliest freaking car I have ever seen and it is so reliable.

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And it was 500 bucks, but only two twenty two thousand miles on it now. But you got to give a car like that a name. But you know what that name is?

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That name is Nurse Anastacio School. You know what a Nurse Estes's makes. I'll tell you what, they make a lot.

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A lot, 300, 400 grand, some of them. OK, so I want you to go get that school and drive anything you want.

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Lighter because you drove Big Red. OK, and I want you to live at home so you get that degree because you got a great career path. But here's here's a rule. When you're setting goals and Rachel and I talk about this all the time, we talk about here in our business all the time.

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Begin with the end in mind, Stephen Covey said in his book The Seven Habits of Highly Effective People. What that means is you need to go ahead and lay out exactly what we're going to we're going to live at home and we're going to do this. It's going to cost us this. I think you can get through undergrad there for less money than you have.

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OK, if you live at home, as a matter of fact, I'm positive you can, that you can get through undergrad in an in-state school, in-state public university in Oklahoma or in Kansas.

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I'm sorry.

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And you can get through it for less than 60000 bucks and buy a 2000 big red. Yeah.

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And I would say, Heather, you know, like by Big Red just get you a little black Honda Civic. Call it a day. Do what you gotta do. Dave, let's talk about the other cars. You can find a cheap car. That's just.

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Yeah, but don't concentrate. I know people that want a little Mazda six to six, but the and the stupid things got 190000 miles on the section for that sexy when you're sitting on the side of the road broken down. Right.

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I think, Heather, I don't want to have to take you literally if it is bigger. It's great. But I'm just saying you can find a great 2000 dollar car. That's a black Honda Civic, also 500 dollars. True. So that's what you got to do. Get you an old car is fine. And then you need a map out very specifically what what the school is going to cost you for four years. Look at your essay. Look at the growth.

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Look exactly what's going to happen. Map out how much money, if you need some each semester, how much you need, and then how many hours you have to work to fulfill that. And then you're looking on to to medical to medical school.

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Much easier to work a bazillion hours an undergrad than it is in grad school.

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Yes. Live. Live like the classic college student. Just not even now. Don't live like you're not playing beer pong. You're working.

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Don't you know, classic classic college student is like broke and you are working like that's like you eat ramen noodles.

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That's what I did in college. Yeah. You're broke. You don't earn money. So like, that's how you need to live because I'm a good dad.

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That's right. That's why you had ramen noodles in college. They built character, turned into her complaining about it at all. I'm not complaining.

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I'm just telling you whether you have to work and you're really broke and it's fine. Like, that's the time to do it. You don't want to be broke and eating ramen noodles at 32 years old with two kids.

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You don't want to call me. You're 400000 dollars in debt. That's right. Because you wanted to be a nurse in Massachusetts.

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And so don't you know, you can do this. You're a bright young lady. This is very possible. All we did was take you through the first couple of steps of making decisions that caused you to hit your goal. Once you have your goal, you say this is the goal. I want to graduate here. I graduate in six years, six point five years. And here's a program.

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I can do that. And that's about really what it'll take you.

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And if and here's a program and here's a less expensive program and I got to get qualified for that and I got to get scholarships and I got to drive a cheap car and I got to live at home. And what has to be true for me to be able with my 16, with my fifty nine thousand dollars worth of stuff, what has to be true? How much money do I have to make? How much money Mom and dad chip in?

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In addition, mom and dad have been generous already so that we hit this goal. And if you come out of school nursing this, this is one hundred percent that free touchdown baby touchdown. I mean, the financial goal, the financial milestones you will be able to hit will blow your freaking mind before you'll spend the next decade cleaning up the mess because you didn't have a plan.

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So you are too smart to do it the wrong way. You're going to do it the right way. You called here. Thank you for the bravery to do that. I applaud you. You're a rock star. Develop a detailed plan of what has to happen and what you prices you're going to pay to get there and it'll be worth it. You can do this. This is the Dave Ramsey Show. Well, this year may not have been what you hoped for, but guess what, you get to choose what you do with your money going forward.

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And I'm really excited. Our number one best selling author, Rachel Crooge, cohosting with me today, who's written a brand new book called Know Yourself, Know Your Money. And it is available starting today for preorder.

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The actual publishing day will be in January, on January the 5th. And that's when the books will ship. And we've talked to the baby steps on the how for many years. Now it's time for you to go beyond money basics and discover why you handle money the way you do your habits, your tendencies, your unique fears. All of these things motivate your decisions and put gas on the fire that causes you to win, cause you become successful faster.

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If you preorder, know yourself, know your money.

[00:20:25]

Today, only 20 bucks, you get fifty dollars in free stuff added on the audio book, the ebook and a new exclusive video lesson from Rachel that will go out at the first of the month. And so preorder today in the online store at Dave Ramsey Dotcom. Exciting a no no another No. One, I'm sure.

[00:20:46]

Oh, well, I'm sure you can hear lips, God's ears. I don't know. It doesn't matter. It doesn't matter. I think it's it's a it's an exciting time always when you're launching a book because your time, your heart, your soul, your thoughts, everything is in this thing, in this book right here. So it's it's exciting. I'm excited to read it.

[00:21:04]

So when you know yourself, you'll know why you handle money and it'll cause you to be able to handle it better and for that matter, know your spouse. Yes, for sure.

[00:21:14]

I think it's so, so key to understand your motivations and why you make the decisions. You make it so. It's a scope of reasons. And so through the book, we kind of walk through eight big sections of that. And I think you'll have light bulb moment, still discover things about yourself. But like you said, even those around you from your friends, your spouse, your parents, your kids, all of it. So just really, you know, self-awareness for self-awareness sake is pointless.

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But using it as a tool to help you in your life and in this case in your money is really powerful.

[00:21:47]

Awesome stuff.

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The book is Know Yourself, Know Your Money, discover why you handle the money, handle money the way you do and what to do about it. Dave Ramsey, Dotcom, Rachel Cruise, Dotcom, either one to preorder it. And if you want a free quiz to kind of give you some insights on some of the things you're going to learn, you can text a free is you can text them word money quiz to 33 789 money quiz two three, seven, eight, nine.

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Brandon is with us in Seattle. Hey. Hey, Brandon. How are you?

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Hey, I'm good. Thanks for taking my call, Dave. Hey, Rachel. Hey, what's up? Hey, so my question is, if I should buy a Tesla if. Are you there? Oh, no, Brandon. Right, mate, you're cutting in and out. You're cutting in and out. You're still there. Yes, I'm still here.

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OK, I'm worried about you being a high tech Tesla when your phone doesn't work, OK? So there are your question is, can you buy a Tesla?

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What? Can I buy a Tesla if I don't have a house and still save for a house and in a few years I want to have a house? OK, well, what's your financial situation? Yes, my financial situation is I guess income is around two hundred forty year, maybe 40 percent of that is in company stock currently, like my debt is paid off. So I have about 30 of that or maybe a little over in a truck that I can sell to support that.

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OK, so you're going to pay cash for a Tesla. How much is the Tesla that you're looking at that?

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I used to probably be maybe around 60. OK, well, I don't think it matters whether it's a Tesla or not. Can I can I make two hundred forty thousand dollars a year? I'm single and I'm completely debt free and I have the cash to buy a sixty thousand dollar car. Is that OK? Yeah, that's the question, yeah, I think I'm single, yes, I do have a girlfriend, but I'm not married, you know, once for me, we've been dating for a while.

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So that could be consensus, I guess.

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But I do know I'm just saying, you know, you don't have you don't have children know a bunch of responsibilities. You know, something else going on. You make a ton of money. You're buying a sixty thousand dollar car. You make 240 a year.

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Right. Yes, that's right. Yeah, do it, Brandon, I'm a little jealous. It's kind of my I'm not a car person. I'm impressed with Tesla's. I'm not going to lie.

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So I'm I'm all for you get financially 100 percent. But I also think it's a really cool car and I'm not a car person, so I think it's great.

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You know, most Tesla people aren't car people.

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What does that mean? It's the fastest car on the road, do you know? But they're not car people.

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Have you been in a Tesla before? Battery? No. Have you been in one of battery right now?

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You've been in one. You've been in one. Have you set and want to drive one.

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No, I have not. No, I have not.

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It would have premature for me that you have to put an app in there that had muffler noise. I have to hear something running.

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You know, I'm in a car. That's a redneck, OK? Definitely. Definitely. Oh, not completely.

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You get in one and it's just there's nothing, you know, loud mufflers but big screen there.

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It's pretty impressive. I'm not going to lie.

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So I think that's I think, you know, most the guys that I know that love them are their tech guys. So and he's Seattle. So I don't doubt it gets you.

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I see him all the time. Rachel, Rachel.

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Highly recommend Rachel endorsing Tuscarora. They really are really cool.

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And again, go, hey, you cannot hate if you've nozette and drove in one day.

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Listen, if you want baby you just go back to calls, we'll get back to calls.

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But there's a game on. Oh man, I forgot it. Now they call it some kind of mode. Oh shoot. Rocket motor. Yeah, yeah. It's called code. It's something you turn it on and you put your foot on the gas. You did it and you, you did. You just like you did the demo drive where they show you.

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No, no, no I didn't, I didn't. I completely sold you shoot. It's called a phrase I forgot anyway. It does have. Yeah. I've heard of this. I've heard it. It's part of their demo. It's insane. You literally have like vertigo.

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You feel like you have your neck on a roll with a guy last night that the the new Porsche, the new battery portion of Tesla though, and now zero zero to 60 in two point nine dollars is like a battery car to just think, OK, it's the new Porsche battery car.

[00:26:19]

But yeah.

[00:26:19]

Well, anyways, I can't answer me this. Here's what I don't understand. OK, I got I got a thousand folks here and we have like six or eight of those plug in things I said.

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Yes. And those plug in things to plug into the electric cars are on my electric bill.

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Oh, that's smart of them. I should bring my Tesla if I buy one here.

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So why is it that I don't have a gas tank out there to give free gas to the rest of the people?

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I would assume it's way less expensive. All the all the. No, no, it's not. It's it's way less expensive for them. It's more expensive for me. You would save money on gas.

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I'm providing free fuel to some team members, but not like I don't think, hey, we're all on board with that.

[00:27:05]

If it is what everybody in the booth wants the new gas tank install. So we'll work on the EPA on that. That's going to work.

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Yeah, I think it's much more expensive to charge up the car than it is for them.

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I'm no good either way, if you know I don't.

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I just think it's interesting how that culture works, how that worked culturally that I no one ever thought that there was anything wrong with me.

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Paying for that can cost a lot.

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I know, but I'm not griping about it. It's just interesting to me that I'm supposed to do that culturally as the owner of the building.

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I'm supposed to provide electric for the electric cars, but the poor gas people, you know, I don't I don't get it.

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It's just very interesting.

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So, yeah, get your Tesla dude Raichel highly recommend and put it in whatever that mode is that she's talking about.

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I know all the Tesla. I'm sure they'll be tweeting. Oh, I'll give you out four days or something. All right. Just give you one more thing to be pissed off at mood. I'm going have to get something else. Listen, I want something with a muffler and a big engine.

[00:28:09]

I can't even stand the fact that that Raptor has a little tiny six cylinder in it. It's a tiny little six. I had to put booster. I had to put on a really strong. Yeah, yeah.

[00:28:17]

See, until you sit and one and drive one discussion. I have to admit that is a valid argument. I have not sat in one and I have not driven one. And I do have good I have good friends who are totally geek down about them. It's fun. I did love that. Moloi when he spoke, the guy was president of Ford, called him a battery with wheels ludicrus mode. Thank you, Kelly Ludicrus. That's it sounds like a rapper.

[00:28:45]

Yes. This is the Dave Ramsey Show. Our scripture, the day first, Samuel, 16 seven, but the Lord said to Samuel, do not look on his appearance or on the height of his stature because I have rejected him, for the Lord sees not as a man. This man looks on the outward appearance, but the Lord looks on the heart. Herman Melville said it is better to fail in originality than to succeed in imitation.

[00:29:50]

Oh, that's good. Very good. All right, up next is going to be Jacob and Jacob is in Washington, D.C. Hey, Jacob, welcome to the Dave Ramsey Show today.

[00:30:04]

Hey, Rachel, thanks again for taking my call. Rachel, congratulations on the upcoming publication. I'm looking forward to preordering today as well, so I'll just jump right in. I am just starting. I just finished reading your books. Dave and I took a bonus pay from work and use that. Traditionally, I would just throw that in savings and let it sit, but actually use that to pay off my credit card debt. So just pay off about thirty five thousand dollars in credit card debt.

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And I'm looking to start chipping away at student loans, which is right thing for me. So thank you. My question is actually I'm driven to go Gizelle, but I'm a little hesitant, kind of multifactorial one. Obviously, the state of, you know, the world right now, but also my company might be going through a restructuring. So I'm very highly motivated to go and Gizelle after Peanut's credit card debt and a little bit hesitant. So I would love to have a little bit of advice from you.

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OK, well, what are you I wouldn't not I would either go, Gizella. I would just push, pause and pile up cash. OK, you're either not doing the plan or you're doing the plan with Gizelle. That makes sense.

[00:31:09]

And pushing pause is a reasonable and a smart thing to do, depending on the level of uncertainty that you've got. All jobs are uncertain.

[00:31:20]

Some people are under the illusion that they're not, but they're all uncertain. Everyone is on straight commission. Try not going to work for six weeks. You'll quit getting a check. Everybody gets paid when you work, period, and so, you know, everyone has a level of uncertainty whether they perceive it or not. Now yours is added because of a restructure and some covid implications. So what would you put percentages, a percentage of probability that you're going to lose your job before you get to 50 K paid off?

[00:31:54]

I would probably say less than 10 percent now, however, with a potential second wave that would exponentially increase within the next six months. OK, so what do you make a year? Around 140 and how quick do you pay off 50 K? Is that your only that's your only remaining debt? I have a mortgage as well. OK. Don't talk about your baby. Step to Gizelle. Intense. OK, so 50 K makes you debt free since she cleared the credit card debt, I understand correctly.

[00:32:32]

Correct. How fast are you going to do that? I would like to do it as soon as possible. Give me a date number of months to the end of the year.

[00:32:46]

I would like to have my student loans up so you can pay have 50000 in six months, making 140, correct. Pretty aggressive. That's like zero life. I'm not even I'm not even sure that you can do that mathematically, but let's just say you did.

[00:33:03]

OK, so then what happens during that six months? You have almost no probability of being laid off, correct?

[00:33:12]

But should be 100 percent debt free and then after that six months, your probability being laid off would be what? I would say close to 30 to 50 percent in the ballpark, depending on how they're restructuring and what do you do?

[00:33:29]

What is your career field? I work in medical cells.

[00:33:33]

Oh, good. That's wonderful. OK, so if you've been successful doing that, you can do a lot of different stuff, right? Correct, yeah. Including other medical sales. Very, very transferable skill, big time. Yeah, and I think you said Jacob of a second wave hits, that's their probability of you losing your job. But we don't I mean, you're talking a second win of a covert or the restructure of the restructuring. Oh, my bad.

[00:34:06]

Sorry, I'm in covid brain. I was thinking the second life.

[00:34:09]

That's I guess I guess it could be either. You guys are both correct. Sorry. Yeah. So the restructure is going to have two waves of of occurring and your probability being laid off in the second wave comes up. Here's what I do.

[00:34:23]

Let me ask you this. If you got to October. And you got are you going to get more news during the six months that's going to give you an indicator up or down? Yes, absolutely. That's usually how, yeah, the rumor mill or whatever increases and you get either more secure or more scared, right?

[00:34:46]

Correct, yeah. Why don't we crank it till October and play it and keep our ear to the ground. Let's listen to what what the what the tea leaves are saying. Sounds like a plan. I just needed that external guidance. I appreciate that. Absolutely. You know, I'm just thinking through all I'm doing, asking you questions, that kind of thing. So if overall you're your worry is 10 percent period, the answer is no. You go so intense because everybody's got a 10 percent worry.

[00:35:13]

Some just don't know it, you know, but the but the month to month by reassessing, I think it's great.

[00:35:19]

Yeah. So staying is common. But then if there like. Oh no, I really need a pause right here because in two months it can get bad. Sure.

[00:35:26]

Positon, if you if you get news in September that there's a 60 percent chance in January you're going to lose your job, push, pause, pile up cash.

[00:35:35]

But that's new news that you don't have the day. Right. Right.

[00:35:37]

And you just work that through. You're exactly right. Right. So just do the month to month reassessment. And so, yeah, what you're doing is you're setting up a war room to do a battle plan and you're fighting your way through this and you're going, OK, and how how far can we extend that without getting ourself in trouble?

[00:35:52]

And but at the point that you can see a true probability, not a worry of a layoff at that point, push, pause and pile up cash, wherever that is, and just constantly be watching that. And that's north of 50 percent probability. You go, OK, there's a better than half chance I might lose my job. Boom, push, pause. I'm kind of generally worried, no, go for it. Yeah, that's good. That's a good principle to run on.

[00:36:21]

James is also in Washington, D.C.. Hi, James, how are you?

[00:36:28]

I'm focused on that center stuff I used to better than I deserve. How can we help?

[00:36:34]

I got a good problem. I guess my in-laws very generously offered my wife and I two hundred and fifty thousand dollars to help with a down payment on our home. Obviously the amount exceeds the yearly gifts, so they want to structure it as a family loan and they're telling us that it's one that we don't have to pay back. So I just want to kind of get your guys feeling on how it could potentially impact our relationship. If we say yes, then we'll definitely owe them a lot of money and know they may be offended.

[00:37:08]

My wife is fully on board with taking the money. So it's her dad.

[00:37:13]

Yeah, it makes sense. Now she's got a mortgage more comfortable with it.

[00:37:18]

I would do it. I would want it all in writing. And it sounds like this, OK, that it's going to be forgiven at the maximum, maximum allowable annual gift rate. And in the event of death, it is included in the estate and there will be zero call on the note. In effect, that's not that it's an advance on your inheritance.

[00:37:40]

Then you. That makes sense, you don't have payments to your in-laws under no circumstances do they have any grounds to ever call the note, nor would any other heirs have the grounds to call on the note upon death, that loan is forgiven.

[00:37:57]

And can can or might be applied to the estate balance, in other words, you might cut might lower the amount you inherit versus your brother in law.

[00:38:05]

OK, you see what I'm saying?

[00:38:07]

Or maybe they haven't done that for the 17 year old yet or whatever. I don't know. But yeah, but 100 percent forgiven at death or applied to the estate and and it's forgiven at the maximum allowable, which is four times the annual, by the way. OK, so he he you know, father in law can give you mother in law, can give you father in law, can give your wife and father in law, mother in law can give your wife.

[00:38:34]

That's four times. Yeah. Yeah. And that's the maximum forgivable. And that's the way I would set it up in that way. It's not that and it doesn't get weird. That's a good question. Nice gift, Rachael. Good job. Thank you. Thanks for having me on. That puts this hour of the Dave Ramsey Show in the books. We'll be back with you before you know it. In the meantime, remember, there's ultimately only one way to financial peace, and that's to walk daily with the prince of peace.

[00:38:57]

Christ, Jesus.

[00:39:05]

This is James Childs, producer of The Dave Ramsey Show. Once again, you made The Dave Ramsey Show, one of the top four most popular podcasts last year to get your daily dose of motivation and inspiration from the Ramsey network subscribe or follow today wherever you listen to podcasts. Hey, if you've got questions about retirement investing or becoming an everyday millionaire, go bigger and broader with my man Chris Hogan on the Chris Hogan Show. I am excited to be able to talk to you all week in and week out.

[00:39:35]

We're going to focus on your calls and it's going to focus on building wealth investing and how to become an everyday millionaire. Subscribe to the Chris Hogan Show wherever you listen to podcast.

[00:39:46]

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.