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[00:00:26]

Live from the headquarters of Ramsey Solutions, broadcasting from the car rental studios and so that Dave Ramsey show where debt is dumb, cash is king and the paid off home mortgage has taken the place of the BMW as the status symbol of choice. I'm Dave Ramsey, your host. Thank you for joining us. Chris Hogan is my co-host today. Ramsey, personality number one, best selling author.

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A couple of times over, we're going to be talking to you about your life and your money. The phone number eight eight two five five two two five. That's triple eight eight two five five two two five.

[00:01:02]

Trevor is in San Francisco. Hi, Trevor. Welcome to the Dave Ramsey Show.

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Oh, my God. I don't sure. What's up? I had a rollover IRA from my previous employer a few years ago that I turned from three thousand into one hundred thousand, and I'm just wondering, because of the new covid Cares Act, if what you thought about if I withdrew the OK, stop a second U-turn.

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Three thousand and 100000 over what period of time?

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About eight years, I was OK, were you adding anything to that?

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No, I wasn't adding anything is just all pure investment, individual stuff, and I know how much you hate individual stocks, but well, you obviously did very well.

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Congratulations. Amazing. OK, so you've got 100000 bucks in there and you're.

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How old? Thirty four. And why would you take it out? I mean, I did up to baby step forward and I have a for one K plan with my employer right now, about 11000 in there, and I just look at that area as like, you know, I have three thousand before. And so I'm guessing everything else is profit. So I wouldn't mind paying just the income tax and just taking the rest just to have that cash on hand.

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Yeah, but why? I mean, just because just because it was money that it didn't it didn't grow slowly doesn't mean we have to get done with it. That's true. But, you know, I've had a reckless youth and I'm just getting to my baby steps. I have about twenty one K in savings, but I'm thirty four and I kind of want to settle down and buy a house and I figured this would help. OK, sorry Trevor.

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I was going to ask you, what is burning a hole in your pocket. Is it a house or is it a vehicle. You know, I paid everything off, I did up to be set for that, right. But what is it you're wanting to buy you got? Something's bugging you. Well, I mean, eventually, like I have a girlfriend now and eventually I want to get married and start a family. And when that time comes, I just want to have that available.

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OK, what's your household income to cover right now? I'm at one time, OK?

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And what debt do you owe? Nothing. I know, because you said that three times, I just making sure. So you want to eventually buy a house and you're trying to buy that that engagement ring, right?

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Yeah. OK, you can do that off 110. Yeah.

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I really would not cash it out. I mean, you're giving the government a third of your money in order for you to have access to it.

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That's that's kind of like saying I want to borrow money at 33 percent interest so I can get so I can get access to the money. It's the same math. And so I'm not sure. I think it's. You're afraid the window's going to close. You're you have the additional 10 percent penalty if you take it out later.

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Let me just tell you, if I were you, I would just close the window, period, and let that hundred thousand turn into a million and then get about the business of building your life off your one 10. And just forget you own that money.

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Put it in good mutual fund. Slow down your growth curve here. Slow your roll and go from there. That's what I would do.

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Yeah. And in his mind, taking it from three and it growing to 100, he got lucky. It's like it's like a lottery money. But like you said, you don't want to turn that that fast money into dumb money.

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And that's that's board that'll preach right there. So be smart, my friend.

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That's that's the game plan I would use. Hey, thanks for calling in open phones. Paul is with us from Pensacola, Florida. Hey, Paul, what's up? Thank you, Dave and Chris, for taking my call. I've got a question for you. As far as an inheritance, what basic guidelines would you set for your children to follow or to receive an inheritance? What just some basic biblical guidelines, I guess. Not trying to be overbearing, but just some simple things.

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Well, I can tell you what we did are some of the things that we did. We view the money that we have, Sharon and I, is not our money. We view it as God's money, which is what you're talking about.

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Right. Yes, sir. And so the money and the things that we own, we don't own, we're managing them for God in order to qualify as a manager upon my death, you would also have to view the money that way.

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OK, and so if you're not going to view it as a stewardship thing, you're not in the will. Our family constitution starts out in my house now you can do whatever you want to do, but at my house it says, as for me and my house, we will serve the Lord.

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OK, that that answers my question. And so if somebody is going to be running around doing all kinds of crazy stuff in their own personal life, and they're not going to be, you know, they're going to say, oh, I get the I hit the lottery because I had Dave Ramsey's DNA in and out of the will.

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I'm not funding some bozo on the back of a yacht running a line of cocaine with his money. Right. I don't want to grow a reality show, I'm trying to grow a family. Right. That makes sense. I was just making sure I wasn't going to be saying something out of line or, you know, going out of bounds on something.

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What would that be inconsistent with what they have heard from you as they grew up with you as their dad? No, no, not at all, not at all, I just I just wanted to make sure that there was a biblical thing to do, not something just me wanting to exercise authority over them, you know, going forward, I guess, is the way to say it.

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Well, I mean, you can look at it however you want. But the way I again, the way I view what Scripture says is that I don't own it. I'm a manager. And what kind of a manager would hand the keys to an inept manager? Right. OK, that's not a nice thing, it's not a faithful steward. Yeah, you haven't guidelines. What you're doing is not only protecting them, you're protecting what it is that you've built.

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Yeah, because, I mean, if they're doing heroin, all you're doing is fun. Their heroin addict, you know, a habit.

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Right? You know, you're just because when they get money, you know what crazy gets when it gets money. Big crazy. That's what I get. And that's why that's where you see the trust fund baby stuff pop out and all that. And so now nobody's perfect. And none of my grams of kids aren't perfect.

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No, Mané perfect for sure, but that's how we've got it laid out and it's even in our trust documents that way to where if one of them wants to go off the rails after I'm gone, the other two can remove the keys because it's the fact that the point is you're not blessed by money when you're misbehaving because it just, it magnifies your misbehavior.

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Mm hmm. And how you would be amazed at how much control you can put in place, protective measures you can put in place for for young adults. Talk to an estate planning attorney. You'd be surprised to see what you can do. You want to be a blessing, not a curse. And when you give them something they can't control, that becomes a curse. And it's not a control freak because I want to control it. It's a control freak because I have an obligation before the Lord as a Christian to manage money for him and to do so adequately.

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And that's what I want. Right, because I want to raise good adults that can take that responsibility on. But it's a responsibility. This is The Dave Ramsey Show. No matter what time of year it is, focusing on your family's financial plan is always a smart move. I get questions all the time about where to start and what to do first. Getting term life insurance needs to be a top priority. I recommend 10 to 12 times your income and lock in rates for 15 or 20 years.

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This gives you plenty of time to get out of debt and build wealth. I've been recommending Zander Insurance for over 20 years. They understand and live the strategy and will take the time to help you find the most affordable term life rates. Go to Zander Dotcom or call 800 356 42 82.

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Chris Hogan, my co-host today here on The Dave Ramsey Show. Adam is next.

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Adam is in Birmingham. Hi, Adam. Welcome to The Dave Ramsey Show.

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Hey, thanks for taking my call. Sure. I wanted to reach out to you. You're currently using your foundation as person planning resources with our two children who were high school age grand. Today in the investment chapter, you were discussing the devastation of roughly 25 percent of funding in a mutual fund in small made large cap international investments. And so I went back and pulled my colleagues for one case for myself to see where I had my money and my options.

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And I'm noticing that I have the option to do small cap and large cap. I don't have a mid-cap option as defined. And the only thing that I have in the way of an international option is a world equity fund. So I wanted to get your input. And so you should I follow that same advice, the 25 percent and what would be without a mid-cap option?

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You probably have an S&P probably of an index fund, S&P 500 fund, don't you? I do have that, yeah, that's midcap, OK? That's right in the middle and it's you know, that's that's just close to it's going to perform very similar to midcap. It might have a little better diversification than a typical mid-cap inside it, but it'll perform real close as far as the World Fund.

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The only difference is it'll have some versus an international hit, have some use in it and mixed in with other countries. And because of that, it will actually outperform a typical international a typical international fund, because the international of the four categories that we teach people to use, the international has like behind for about eight years.

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So that that Worldfund is that fidelity by chance. This is actually FCI FBI team. OK.

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All right, well, I was looking I was looking at the Worldfund the other day that it just can't zoom zoom so.

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But the yeah, I yeah, I pick up the world in lieu of but it's slightly different and then pick up your 500 in place of your midcap, although it's slightly different, but you still got good diversification across types of funds and that's assuming none of those four funds absolutely suck. I'd look at their long track records and see how they've done compared to other funds in that category compared to some of the trend lines in those categories. And if it's all right there, then you would be just fine doing that.

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Yeah. Adam, I'm curious. What is your net worth, Adam? I have no idea. I don't even know how to get that, to be honest, I just started following the information a couple of years ago.

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How much how much is in your 401k? Got a total of about 160 and collected phone calls between my wife and I. Good for you. Well done. So you've got a really good start, but that's how I would do it. The large cap is sometimes called a growth in income or a blue chip. The mid-cap is a growth fund or an S&P 500. It falls within that category. In general, the small cap is an aggressive growth or an emerging markets fund was the way those will sound.

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And then, of course, the international sometimes called a foreign fund and the kissing cousin is a world fund because it has some U.S. in it or some world funds from general funds called a global fund. If you just think, what does it mean? It means the whole world versus just the international. It means the whole globe versus just the international. And that's the nuanced difference between those. And again, because it's got some U.S. in it, it will outperform the typical international.

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So that's cool, man.

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Good that you're looking into it, teaching your kid cause you to get your 401k to go pulled out and look at it.

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And I think that's really neat. And you should probably I would tell your kids you did that, that, hey, I went to go look. And you know what? I'm making sure that I've got things in order. I think that's a great way for these young people to not just hear about it, but to learn it.

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Here's the other thing. Let's be real clear. He wasn't even sure. The kinds of mutual funds he had, right, or when he started looking at it, what the other cons were and he had how much in there, 100 to 150, 150 and didn't even know what he's doing.

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Right. So what that tells us is he was doing some things right, number one. Right.

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But what we keep telling people is, well, I don't know about Dave Ramsey, his rates of return, he quotes and Dave Ramsey doesn't help you get rich diagrams is only good for poor people.

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Well, you're stupid, but is what you are, because here's the thing. We know that the data tells us that 74 percent of the reason that people build wealth is they actually invest.

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That's right. And I get more people you get more people to invest. Yeah. Then all these people writing financial blogs in their mother's basement yelling at us about rates of return.

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Listen, you know, his right of return had no idea he got 150 grand out of just bothering to invest.

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Right. Blindly, somewhat not. I'm not picking on him. He's great.

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I love it. But it's not arguing about my PE ratio. I'm not worried about my expense ratio. I don't know if I agree with the Ramsey's analysis of the S&P. Well, kiss my butt. Guy's got one hundred and fifty thousand bucks in there and you ain't got nothing. You live in your mother's basement. OK, that's the thing, man. I mean, seriously, is this not just ridiculous? It is. What we found is the National Association of Actuaries, which is the National Association NERD'S, did an in-depth research study that says that 74 percent of the reason for retirement bill building your retirement success in building your retirement is actually investing.

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I call it savings rate. Now, what do you call savings? Right. And baby step for 15 percent of your income. That's a rate of savings. Yes, this is highly correlated, more than rates of return, more than expense ratios to ending up with some dadgum money in your pocket.

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Yes. For your future. Bottom line is, you know, you can't get caught up in all the silliness spins, follow the recipe, follow the recipe and stay focused. That's what we found. All this big study of the National Study of Millionaires studied over 10000 of them. The number one reason they said they invested in the used employer sponsored retirement plans and IRAs.

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And you don't want to keep some of them were so steady that they should have changed some of their funds. Yes.

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And didn't some of them were riding a lame horse all the way down to a million, six, you know, and but the thing limped. If it had been run a little bit, it had been two point two or two point three. That's right. But all they did that all these idiots that talk about things in theory don't know is they freaking did it. They did it. But they everybody sits around with paralysis of the analysis.

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It says, ready, aim, aim, aim, aim, aim, aim, shoot something.

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Put some money in your mutual funds. My God, even if you're doing it wrong, you're doing it more than the stupid. But people are doing nothing that live in their mother's basement.

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No, you're right. And so for those of you that are out there, you may be saying, I don't know what I have. Guess what? Pull it out. Go sit down with the smart Vesterbro, find out if you've got something limping, if you can make a little tweak and make it run a little bit better, watch what will happen.

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Yeah, but here's the thing. There's no shame in your game because you're actually in the freakin game. That's right. You actually are doing something. Yeah. Which is seventy four percent of the reason for success though. The other twenty five percent is the fan turning right and understand the investments and doing the stuff which is what he was asking about. Brilliant.

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But listen, you got, you got The York Times. I talked to a guy who's got two hundred fifty thousand dollars invested in his 401k and some bozo driving a used Toyota who ain't got two nickels to rub together, is trying to tell him he didn't know what he was doing.

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And I'm like, hey, bubba, check the fruit. You know, it's a Dr. Phil moment. How's this working for you? So don't be don't be shamed by some intellect within the financial community or some article on the Internet. Are some bozo writing a blog out of his mother's basement when you got more money than five of those people put together because you've actually even though you weren't doing it perfect, you're actually doing it. That's right. Nothing dies unless you pull the trigger, baby.

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Ready, aim. And he him a name.

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He got it killing me. We have tapped into a vein. Mr. Ramsey is awake and is ready to roll. Well, somebody on Twitter. I know. I know, Dave. They're out there and they're stupid.

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Now it just here's what aggravates me. I don't give a crap whether they like me or not. Right. But they're misleading. That's right. These other people. Yeah. And they're all sitting around joining the paralysis of the analysis club.

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You're right. And that's they analyze everything. That's the typical from a single mom. And I don't get me wrong, but sit around and sit and look at stuff and talk about theory and go do something. This is the Dave Ramsey Show. People all over the country are discovering a faith based and budget friendly way of meeting health care costs through Christian healthcare ministries, Christian health care ministries, or CHF, is a nonprofit organization that helps members carry one another's burdens with health care expenses.

[00:19:44]

And they have successfully shared each other's medical bills for nearly 40 years. CFC H m is right for you by visiting S.H. Ministries. Doug c h. M is a proud sponsor of Dave Ramsey live events.

[00:20:11]

Chris Hogan, Ramsey personality, my co-host on The Dave Ramsey Show today, open phones, a triple eight two five five two two five. Chris James also asked us to address the I don't know what you call it. It's a clip of our night. It's not a video clip. It's a little short written piece on a cashless society that's going that's going viral on the Internet that says I wrote it and I didn't write it. Oh. So, like, it's all about conspiracy theories and there's going to be no cash and cash.

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You know, all the digital is going to be used to track you and, you know, put them put the mark of the beast on you or whatever.

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I don't know what the crap it is, but I mean, if you read, like, one paragraph of the thing, you know, that I didn't write it because I'm not crazy.

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Right. That helps. Here's the other thing interesting that we live in a culture today that is more tech savvy. And has the ability to access information so many different ways through all kinds of social media. And yet people believe anything, so they're tech savvy and yet they're stupid.

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That's exactly right, yes. I mean, so I've been I just been retweeting I did not write this in quotes. Everything on the Internet is true.

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Abe Lincoln, it'll come to you. Think about it.

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But yeah.

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So, no, I did not write the cashless society crap that's going around and just come on, people, you know, think don't re tweet.

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And Facebook is worse because it's I guess there's more stupid people on Facebook. I don't know. But it's like Twitter.

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Twitters hate Facebook is dumb.

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Can I just go on from there. But but yeah.

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I just think when you look at something go I don't really think that the president said that. I don't really think that so-and-so said that. I'm not going to retweeted until I actually think about this and look at it and check it.

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Looks like they read what he says. We're going casual today. Ramsey didn't say anything about.

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Yeah, it's absurd. Now, here's the reality. What businesses love for us to go cashless. Absolutely they would. We've seen time and time again, studies show that when people use plastic, they spend more. Yeah, we know this 18 to 20 percent more. So businesses would love for that to happen. I've read in a few articles that some businesses have run into not having coins, so they didn't have change. So they were encouraging people to use their debit cards.

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But, you know, I'm with you today. People will take these things and just run it together and and crazy can attract more crazy. And the next thing you know is you got this snowball.

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Well, my theory is, as long as those rednecks will be cash, the cash isn't going anywhere because I'm always going to have some hundred dollar bills.

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Yeah. I mean, not my my three one hundred dollar bills folded over in the back of my money clip is my redneck emergency fund and I've had one for 30 years.

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Three just. Well that's all that's in the back. OK, in the back. Yeah. I don't touch that because you cost me your wallet. Wow. Yeah. I got a money clip. I carry real cash. You have real money in there.

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But that's not the point. I'm not bragging about that. My point is that guys like me are always going to have some money to me, to money me to, you know, sometimes that stupid plastic, the algorithm kicks in because of identity theft and you can't use any of it.

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I've had that happen.

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Yeah, I mean, they could not take it.

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They are Trumpy and Dave Ramsey and not be able to check into a hotel, your debit card that will piss you off. OK, so, yeah, you got to have some cash right there. I mean, she's now I did not write this stupid cashless thing. Yes.

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Just settle down, settle and spread that out there among your stupid friends.

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Unbelievable. Three tweet that we post that on Facebook.

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All right, Larissa, I feel better now. Sort of. Not really. And it also stirred up.

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So what you did, James Larisa's in Billings. I was there yesterday, Larissa. I was up there. Flatfish. It's beautiful country had never been there before. How are you any good?

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It is beautiful up here right now. Yeah, well, I know you have been having some anxiety about paying my credit card bills off. I have to take that money out of savings and pay off. And it's really hard because it's not there anymore. So I went ahead and called Chase, one of my credit card companies, and I wanted to do a lot of negotiating with them. And so are you behind. I know I'm not behind them.

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Well, they don't show the people that aren't behind, honey.

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Oh, I didn't know that I was out in the people in the house to see if I had to. What would be the better option?

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No, they don't they don't, like, write down debt unless they think they're not going to get their money. If you hadn't paid them and if you hadn't. I'm not suggesting this, don't do it, but if you hadn't paid them in six months, right, then they get they get in the mood to settle because they think you're a deadbeat.

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OK, Larissa, how long were you on the phone with him before you found out that they're not budging? Oh, my goodness, an hour they gave me the runaround. They hung up on me twice. It was ridiculous. It is ridiculous. And you want to keep them around, huh? All right. Check those people off and get them out of my life.

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So I chase this mess. I mean, I know I need to do that. Now that I realized that I was thinking that they would settle with me at one point. One of them told me they would do 90 cents on the dollar.

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Wow. I'm surprised. I wanted to try to get you know, I wanted to try to get that in writing. And the supervisor came on and said, no, we're not going to do that anymore. Yeah, yeah.

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And this person doesn't work anymore. Yeah. Marge is no longer with us. Marissa, how much do you owe on this credit card?

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Forty seven hundred. And how much do you have in savings.

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I can pay it off versus how much do you have in savings. About 12000. About 12000.

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How many other credit cards do you owe on one other. And it's only about 2000.

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OK, you got 12000 in savings so you could pay both of these off by the time you hang up with Davenant. I sure could I I suppose you ain't you going scissors? No, I'm going to wait by the end of this week. That's my call.

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Waiting three more days. End of the day, get your scissors out.

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You get them out right now.

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Is there some plastic surgery right here on the way here? Oh, here. You get to get them out.

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Go go over to the door and get some scissors. Right now. Do make don't make us come out to Billing's Lorissa.

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I actually don't have the credit cards anymore. Where are they paying them down. Where are they being cut off. They've been cut up.

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Oh well that's good. Oh, we've made a good first payment.

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So, hey, all joking and kidding around aside, OK, when you hang up the phone, call them and pay them both off, OK. All right, love you well, Bill, we appreciate you calling. Seriously, open phones at eight eight two five five two two five. You jump in, we'll talk about your life and your money.

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Taylor is in Houston, Texas. Hey, Taylor, how are you?

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I'm doing just fine, guys. Thank you so much for taking my call. Sure. What's up? Well, a few months ago, my wife and I finally decided to get really serious about paying off the debt moving forward. Good. I sold my car. She got the keepers because. Happy wife, happy life.

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Exactly. One gets a good car. It's federal law. Yeah. Yeah, that's right. I value my own help to, you know, make sure she wakes up alive.

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So I drove I sold my car and bought a 1980 Dutson to get by.

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In the meantime, did you say 1980 Dotson?

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Yeah, he said 1980 Dotson to 86 was awesome. Every time it rains, I was Marceau's.

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Does it have to roll down windows?

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No. This one was a very luxurious model that had the electric. OK, bye bye. Continue. Please continue. But yeah, we affectionately call it leaky because it does leak every time it rains. I love it. Anyway, we're out of debt.

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We for three to six months ago, you know, emergency fund saved up enough time to buy a car, you know. Thank you.

[00:28:26]

Thank you. So I'm just wondering what you guys would recommend as far as budgeting for that new vehicle. Obviously not new, but new to me. You're going to pay cash, right?

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Yes, sir. OK, how much cash have you got?

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Well, aside from the emergency fund, got another thirty five thousand, maybe almost forty by the end of the month.

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OK, well, you've been saving. Good. All right.

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So what's your household income we make about this year? We're pretty close to 210 this year.

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OK, well, I don't have a limit then. Up to thirty five are our guideline, our guidelines, our pay cash. And your total of all your vehicle should be no more than half your annual income. You're not going to violate that by buying up to 35. And I suspect you're not jumping from leaky to thirty five. No, I think you're going to get wherever you want to go within that thirty five brother. Yeah. Oh goodness gracious.

[00:29:20]

Why not just saving up touchdown by. So you're Yulieski. It's not like sacrifice. Get on, maybe get some firearm before we shoot Leakey's. Send it to us here in Tennessee. We'll handle it Baffour. We'll set it free. This is the Dave Ramsey Show. Well, business owners, we just finished up on a leadership summit 20/20 last week and 20/20 one summit is almost sold out. Yeah, that's bizarre. It's going to be Marcus Buckingham Palace.

[00:30:20]

Craig Rochelle, Simon Sinek. Jim Collins. Christy Wright. Chris Hogan, Dr. John Delany. Ken Coleman and me. And for some reason, I do not see the dates on this, which is weird, but they'll tell you what they are. I guess if you go to the website or hit the text, the word summit to 44 to 22. But it's going to be an incredible lineup. And there's there's just a couple of hundred tickets left that almost sold out with the actual attendees last week for next year.

[00:30:51]

So it'll be I think it's in May again, if I remember. Right. But anyway, Marcus Buckingham, Patrick Lynch, Tony Craig, Rochelle, Simon Sinek, Jim Collins, this is a lineup. If you're in business and you want to learn how to be a better business leader, you want to grow your business, grow yourself. This is the premier leadership event. And Chris, us all the scores come in. You got one of the highest scores of all the speakers.

[00:31:13]

Oh, did I? Yeah. Oh, that's fantastic. Yeah.

[00:31:16]

You never got to score that high on any of your tests in school, but that one was really good.

[00:31:20]

I don't know why you had to go there. OK, we were May 16 to 19. Thanks. Thank you. Thank you. I'm gonna turn the other cheek to that.

[00:31:30]

No, I'm just saying that your scores were outstanding. Well, that's like a 97.

[00:31:35]

That's fantastic. Here's the thing. I don't know how each year you pulled this off. I don't know how you get people to come. These are world class individuals, people that I've read. But, you know, Marcus and Simon and I mean, just getting these people to come to one location and it's just it's remarkable. And so if you're out there and you're a business owner or you're someone that wants to be a better leader, you will never get a chance to see these people in one location other than this event.

[00:32:04]

And you need to come check it out.

[00:32:05]

Yeah, it's going to be a lot of fun to it was this year, it was Craighill, KRudd. It was covid crazy. But man, people are nuts.

[00:32:12]

But the anyway, we it was the people that were here had an incredible experience. We had an incredible experience. We got to spend time with Craig Rochelle and the time with the speakers. For me personally, they're all just about all of my friends. Yeah. Daymond John was down and I actually got to have dinner with him. Him and his guys came up the house, had dinner afterwards.

[00:32:33]

And so he's a new friend now. Yep. Mike Rowe. Yeah, Mike Rowe. Same thing, which is I've been friends with Mike, but I spent a lot of time with him. Right.

[00:32:41]

And it was good to just see him and he's just such a great guy. Every one of these guys that were here were absolutely stellar individuals as well as communicators.

[00:32:50]

Absolutely. The same will be true next year, without a doubt.

[00:32:52]

No, you need to seriously. And many leaders said they were so grateful for the event. And the thing that I love this year more than I'd seen before, Dave, was you not only had leaders, but they brought other leadership team members with them or other people in the business. So it's just a great opportunity for you. Definitely. Go check it out, get your seats. They are going to move quickly just because it's unprecedented to get this calibre of speakers in one location.

[00:33:16]

I'm actually a little shocked we haven't left. But Ontari Leadership Summit, I met this just waiting list. OK, maybe it is already on a wait list. It might be sold out. OK, I'm half but read my copy. That's bad. All right. So anyway, you find out what's going on since I don't know, apparently text the word summit 244 222, summit 244 222. It may already be sold out. All right.

[00:33:40]

Marissa is with us. Marissa is in Palm Beach, Florida. Hi, Marissa. How are you? Hi, Dave. Hi, Chris, thanks for taking my call. I'm good, good. How can we help? So I. My biggest goal really is to purchase a home before I turn 30. I'm on baby steps to I make about seventy two thousand a year. And my debt right now after working on a baby for two is one hundred twelve thousand in student loans.

[00:34:07]

I have a PSP with the government matched at a five percent for a total of 10 percent match. I previously spoke with a previous employer I had about rolling over my old 401k. So I kind of want your opinion on how I should move forward. I will be getting married by the end of the year and kind of just want to know what to do with those for one to find or just finished paying my debt before I purchase a home. Oh, wow.

[00:34:38]

So you're on the cusp of doing a lot of stuff. You're looking and life's ahead of you and you're trying to make decisions and lay out a game plan. And Morris, I'll tell you this. I want you to make two year decisions, young lady. That is look out ahead, make some decisions that you're going to look back on in two years from now. You're going to be grateful you made them. And that, first and foremost, will be cleaning up this debt.

[00:35:00]

And I know you have this desire to own a home, and I have no doubt that you will. But when you do it ahead of schedule, it can end up more of a curse than a blessing. So slow down, get intentional. Let's crack out the student loan debt, be intentional even with the wedding you all have coming up, save up cash for that thing and then gain alignment together as you all are working to continue paying off debt.

[00:35:24]

Renting somewhere for a year or two is not a sin.

[00:35:26]

I've looked at. How old are you? I'm twenty eight. OK, and when you get married. By the end of the year, I'm in Florida now. What's his financial what's his financial condition? So we met in grad school where both social workers for the government, he makes a little bit less than I do, maybe about 60000, and he did purchase a home where his mom lives in in Louisiana with a conventional loan. And he got hurt in an accident and got a settlement from that.

[00:35:59]

So he's pretty OK financially, is he?

[00:36:03]

So he's debt free other than his mom's home. And I think maybe like thirty thousand in student loans. OK, so let's say we're combined. That makes you having 110, 120000 dollars your income. And you've got you said you had one town in student loans and he has 30. I hear that right. Correct. OK, unless is it does he have a pile of money from that settlement still laying around? I believe he does he did that, I think maybe about 25000 aside in one bank account.

[00:36:41]

I mean, I think he has other funds from.

[00:36:44]

So unless I start hearing something else in the mouth, which I haven't heard yet, that there's missing, maybe there's information I don't have. I don't think you're going to own a home when you're 30.

[00:36:56]

OK. And that's why I wanted to call. Yeah, because you've got one hundred and forty thousand dollars to clean up with one hundred and ten thousand dollar income married and 25000 in the bank account that you can throw at it. So you just can't quite get there in in in six months or a year. And that's really about all you got left after you get married, right?

[00:37:18]

Correct.

[00:37:18]

So you're going to make it, but you're going to make it, but it's going to be 32 or 31, OK?

[00:37:24]

But when you do it, you'll have zero debt. You'll have your emergency fund in place, you do not cash out 401. KS unless you are old 401k, even unless it's to avoid a bankruptcy or foreclosure, and because the government's going to take all take taxes out of it. Right now, there's no penalty. Normally there's a 10 percent penalty, too, but they're going to take taxes out of it too. And so that's going to be like borrowing money at 30 percent interest to get out of debt.

[00:37:51]

You don't want to do that. So roll your 401k to IRAs, get with smart vestor pros and do that. And then we're going to give you a wedding gift. We want you to get in Rimsky Plus and go through Financial Peace University to start using every dollar budget. And you got to start working together as part of your pre marriage counseling and getting ready to be married, not combining your finances until you're married, but working together and learning and hitting these goals and and saying, OK.

[00:38:14]

Then as soon as you do combine households, then you put it into high gear and knock that stuff out. And I think you're going to have a house in 31, 32 years old within three years. But I don't think you're going to have one if you do it smart right within by the time you're 30. No, I agree, Dave. And I want to clarify for everyone out there. I know the government in the Kahrizak has said that you can get your 401k and they've gotten rid of the 10 percent penalty.

[00:38:37]

They did not get rid of the obligation to pay income taxes on the money that you pull out. So I don't care about the Carers Act. I care about your financial future. You've got two reasons that you would touch that money to stave off a bankruptcy or to prevent a foreclosure. Those are the only two reasons. Did you just say you don't care about the care? I sure did.

[00:38:57]

I don't care about I don't care about it that a double negative mine was.

[00:39:03]

It's just it's just Karkare, OK? It's a character I don't care about care or care bears. No.

[00:39:08]

You are your Sparkhill bear. No, if you are.

[00:39:17]

Oh my lord. Way too much time to get this hour over with about 45 seconds ago. That puts us our that I Ramsey show in the books.

[00:39:44]

Hey, guys, this is Kelly, associate producer of The Dave Ramsey Show. Did you know over 16 million people listen to the Dave Ramsey Show every week? And a lot of those people listen on one of our 600 plus radio stations across the country to find a station near you. Head to Dave Ramsey, dot com slash. Money isn't the only thing we talk about around here, get life changing advice on your career from my good friend and career expert Ken Coleman.

[00:40:13]

Oh, my Ken Coleman show. According to a recent Gallup poll, nearly 70 percent of Americans are disengaged at work. If you dread going into work every Monday morning and you're just trying to make it to the weekend, the Ken Coleman show is for you. Everyone has a sweet spot. Your sweet spot is at the intersection of your greatest talent and greatest passion. We will help you discover what it is you were born to do, and then we'll help you create a plan to make your dream job a reality.

[00:40:42]

You matter and you have what it takes. Join the conversation on the Ken Coleman show. Hear more from the Ramsey network, including the Ken Coleman Show, wherever you listen to podcast.

[00:40:53]

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.