The Dave Ramsey Show

How Do I Work for a Cause I Don't Believe In? (Hour 3)

Debt, Insurance, Education As heard on this episode: Time Share Exit Team: http://bit.ly/2XgMVsI  SimpliSafe: http://bit.ly/37NBd9g  Sign Up for a FREE trial of Ramsey Plus TODAY: https://bit.ly/31ricKt  Tools to get you started:  Debt Calculator: http://bit.ly/2QIoSPV Insurance Coverage Checkup: http://bit.ly/2BrqEuo Complete Guide to Budgeting: http://bit.ly/2QEyonc Interview Guide: http://bit.ly/2BuGnZE Check out other podcasts in the Ramsey Network: http://bit.ly/2JgzaQR     

00:00:22
Live from the headquarters of Ramsey Solutions, broadcasting from the car rental studios. It's the Dave Ramsey Show that 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, Ken Coleman Ramsey personality is my co-host. Today here on the air, open phones, a triple eight eight two five five two two five. That's triple eight eight to five five two two five.
00:00:53
Zachery is on the line to start off this hour in Virginia. Hi, Zachary.
00:00:57
How are you doing? How about you? Better than I deserve. What's up?
00:01:02
So I know this is you've probably gotten this question multiple times and different variants, and it's probably nowhere near to the degree. But I recently ended up getting into a car loan, which honey, pardon me, basically. And what I wanted to do was get a source of transportation to get a better job. I'm twenty years old. I work two jobs, about 70 to 75 hours a week and. It originally was a good deal, and then as I got roped into it, I ended up I now end up having to pay double what the original price was due to the interest and everything like that.
00:01:38
And so I don't know whether it's a good idea to drop those jobs, drop a job, try and find some other gig cushioning all along those lines. I just don't know what the best course of action is. Hmm. So what do you owe on the car, what's the payoff on it today? It would be seventeen thousand dollars. What's that? What did you pay for the car? I paid two thousand dollars down payment.
00:02:03
This is literally about the price that you paid for the car.
00:02:06
19000. It was seventeen thousand, I got a car loan for two thousand dollars, it originally was priced at nine thousand dollars before processing fees, interest and all that type stuff. And then overall, the car payments all add up to seventeen thousand dollars.
00:02:23
Now, that is not your payoff, honey. Well, of all your payments, yeah, OK, that's not your payoff, your payoff is if you paid it off today, it would not be 17000 that you owe.
00:02:36
That includes all the interest over the whole term of the loan. And if you paid it off today, it's more like ten thousand dollars. OK, so what would be the best course of action, because I just downpayment and I'm just looking to who do you who do you owe the money to? Thomas Motorsports and what is the so they carried the lot, they carried the note on the lot. Yeah, OK, call them and ask them what the payoff is today.
00:03:04
You want to pay it off? OK. OK, and get that and get that number and then figure out what the car is worth. Gotcha. OK, so let's say that that number is 10000, and then you look the car up on Kelley Blue Book, KB Dotcom.
00:03:24
And in, let's say, the car's value, if you sell it, private sale, if you sell it to another individual, which is the best, you know, your best pricing, rather than selling it to a dealer on a trade in value. Look, a private sale on Kelley Blue Book. And let's say that that's 9000 dollars and the payoff is 10000 dollars. Well, that means in order to sell it, you have to put a thousand dollars extra on the table to pay off and get out of this mess.
00:03:49
Yeah, and then it sounds like you need to sell the car, doesn't it? It does I just don't know if it would equal out to the, you know, amount of like the total car payments and everything, that's what made me there is not that it's not the total car payments. Yeah, OK. The total car payments don't matter unless you keep the car and the loan through the whole term. That's the only way you're going to pay.
00:04:11
Seventeen thousand. Yeah. So do you have an interest rate on this thing. Yeah. 25 percent.
00:04:20
OK. Are you living at home with your parents? Yeah, OK. Was your father or mother involved at all?
00:04:29
No, they're they're devastated. No, I mean, did they look at this situation with.
00:04:34
You didn't know what to say. Yeah, 25 percent is brain damage. Nobody said anything, and if anything, I was told it was normal. OK, I'll help you with this. It's brain damage. It's not even normal. Car payments are fairly normal, 25 percent interest on a car is not normal. Yeah, really, really cray cray. OK, that's where you are, all right. So, yeah, you got to get rid of this car and or get rid of this loan.
00:05:02
One of the two. What do you earn?
00:05:04
Yeah. How much are you earning with those jobs? It's about twenty eight hundred all together to play around with. OK, and you. And you live at home. Yeah.
00:05:15
OK, so what are your expenses. If you just said I'm going to live on nothing and pay this car off very, very fast.
00:05:22
I'd pay about, I could probably triple the car payment. Now you make 2800. What in the world would you be spending money on? You live at home.
00:05:33
Yeah. Of food and everything like that. Food where you live at home with groceries. You have to buy groceries at your house. Yeah, I ship them. You chip in. How much? About two hundred. OK, that leaves me 2600.
00:05:51
What other expenses do you have. Yeah. And party. Yeah. OK, so no restaurants, no life until you get this car paid off, 200 dollars plus your gasoline and that's the only thing you're allowed to do.
00:06:12
OK. OK, so let's pretend that that's 2800 minus. I will even be generous, 800. OK, you have 800 expenses, that's 2000 dollars, 2000 dollars pays off 10000 dollars. How fast? About five months you go, yeah, I got a huge misconception about the interesting and it's very well the interest the interest is brain damage for sure, but it's not going to hurt you as bad if you pay it off in four or five months.
00:06:43
I'd like for you to do it in four months, because I'd like you to I would like to grow expenses almost and just put twenty five hundred a month on there.
00:06:50
I'd go get a better job and try to break Dave's record, try to do it and even less than that. You're young, you've got plenty of time. You ain't got nothing to do but work. Yeah. Now you got yourself a car that's paid off and you're never going to do this again. In fact, if you do it, Dave just said you're going to learn this lesson without too much pain. Yeah. And, you know, if you learn this lesson at 20, you never have to do it again.
00:07:11
That's a good note. I've done a lot of stupid stuff in my life, sir. And the good news is if you if when you do something stupid, if you just never do that one again, there's plenty of other things you can do to stop it. But at least you never do that one again. And if you don't do that one again, enough, eventually people call you wise. It's true. So you went on to a car lot and got screwed.
00:07:33
You have five percent.
00:07:34
You got screwed by this company and no one was there at 20 years old to coach you and tell you you were getting screwed.
00:07:42
That is absolutely ridiculous. You you paid too much for the car and you paid too much for the loan you got. There was nowhere in this whole discussion that you got a deal. No one took care of you. No one watched out for you. Your mom and dad just let you wander down and get shot in the face. I mean, this is bizarre, OK? This is nuts. So the bad news is you got this lesson. The good news is it's a complete, thorough butt kicking and you will remember it.
00:08:15
So go make 2500 or three thousand dollars a month and pay these crooks off in the next four months and be done with it.
00:08:24
This is just car. Don't kick his dad's butt. Unbelievable. This is the Dave Ramsey Show. Man, I am sick and tired of people getting screwed over by the timeshare industry, people are paid off their timeshare but still can't even give it back.
00:09:05
That's crazy. If you're sick and tired of paying for a timeshare you can't afford called timeshare exit team when you hire them before May 31st to exit you from your timeshare. If they can't get you out before your next maintenance fee is due, they'll pay the fee for you. I trust timeshare X a team call eight four four nine nine nine exit or time-Share exit team dot com. Some exclusions apply see site for details. We've gone through some tough times recently and a lot of folks are hurting right now.
00:09:51
Might be jobless, you could be broke, could be struggling to put food on the table, literally. John Maxwell says change is inevitable.
00:09:59
Growth is optional. If you said to yourself, never again during this covid shutdown, you've already taken the first step towards winning with money you've chosen to grow as a result of these tough times.
00:10:13
If you want to take the next step so that you can sleep easy and join the group of Americans who are not haunted by their finances, well, we can show you how we've been doing it for 30 years.
00:10:24
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00:10:43
You can budget with the premium features of every dollar, sink with your spouse, sink with your bank, everything you can track your progress with the new Baby Steps app.
00:10:53
And you can start your free Ramsey plus trial free trial right now, so set your ups. So set yourself up. So you say never again. Never again am I going to walk through a crisis without confidence. I got yesterday on the air, said I had financial immunity when the virus hit, he was immune from the financial problems because he's out of debt and had a lot of money. You can be there.
00:11:22
You can do this. Get the free trial for Remzi, plus text trial at 33 789. That's trial two three three seven eight nine. Roxann is in Tampa, Florida. Hey, Roxann, welcome to the Dave Ramsey.
00:11:40
Hey, thanks for taking my call. Sure. Well, I. I have been a bit of a financial disaster in my life, and I just recently decided to try and get control of it for you by reading this, the total money makeover. I just finished that book and started listening to the show yesterday. Wow. So, yes. So I'm really kind of at a desperation point of me to get myself in order, but also kind of not sure what to do.
00:12:11
I'm trying my best to follow along with the advice in the book. Good. So what is what was baby step one? Baby, step one was my well, I forget. That's all right. All right. You didn't you didn't know you were going to get a test when you called in, did you? I didn't know there was a quiz.
00:12:30
I had a baby, step one, as quickly get a thousand dollars as a starter emergency fund. Does that sound familiar?
00:12:37
And that's what I was going to say. But I was unsure of myself. That's OK. You're OK. And I do have that. And I have actually run into kind of a financial up because I worked an extra summer job and so I ended up with about seven thousand dollars that can put towards something.
00:13:00
Do you remember during the week that we said anything above a thousand goes on your baby step to where we list your debts, smallest to largest, and we're going to pay them off in that order. How much debt do you have? Not counting your home. I have about thirty two thousand on my car and I have about one hundred thousand in student loans.
00:13:24
What do you make a year? I make about sixty three thousand. Your car is too expensive, isn't it? Yes. OK, so we need to start working on getting it sold and getting you a cheaper car like about 7000, huh?
00:13:45
I'm really unsure about selling the car because I don't I'm not going to get what I owe on it. I know. So what do you owe on it, you 032, what's it worth?
00:13:58
And it's worth about 30 or twenty nine thirty, so I would rather you be three thousand dollars in debt than 32000 dollars in debt.
00:14:09
Yeah, go borrow the 3000 at the credit union. Use your 7000 to get you a 7000 on a car and voila, we just got rid of 30000 dollars worth of debt, just like then. OK. You don't sound convinced. I just don't know what I'll get for a seven thousand dollar card, but yeah, you know, I'm you'll get thirty thousand dollars worth of less debt, your car that owns you.
00:14:40
Yeah, this car is ridiculous in your financial situation. Yeah. It's ridiculous, and so what you've got to do is you have how old are you? 42 year family in the area. No. OK, so what you do, do you have anybody that you know that's a mechanic? I could find someone to ask around with your friends who's a good mechanic, have them check out the car and have them make some suggestions of the type of car that'll get you the most use when 7000 on a car.
00:15:14
We're not buying a dream car. We're buying a car that is solid transportation and that's all. Right. Nothing fancy. And by the way, it's not forever, it's till you get your mess cleaned up. Roxanne, how much is your car payment a month?
00:15:29
It's four hundred and fifty three dollars. Yeah.
00:15:32
So imagine when you get that back. Well, Dave just gave you was 453 dollars back in your budget and now you're putting that towards your debt snowball and it's going to feel a lot better. That car may not be something you're super proud of, but you're going to feel better driving the 7000 dollar car. Or I would challenge you to look at a 5000 dollar car anywhere in there.
00:15:53
But then we've got to get after the rest of those student loans and we're going to put you on a budget and help you do all of that. So here's what's happened, OK?
00:16:02
You have never, in your 40 years of life addressed the whole subject of money. It has always happened to you. You've never happened to it. There's no shame in that.
00:16:14
But my point is, is that you are a brand new toddler, barely taking your first steps, learning to walk. And, you know, I got grand babies that are toddlers, and when they take those first few steps, they ain't real stable, they don't feel real confident. And that's where you are right now. You don't feel confident doing this. I've been teaching people to do this for 30 years, and I've been doing it longer than you've been alive.
00:16:40
So it's my confidence and competence on it. It's like automatically I can instantly say, get out of the car, get to 7000 other car, get on a budget and get in attack mode, because I can see how you can do that mathematically. But in your mind, it's so new to you. It's hard for you to ingest that. Does that make sense? Yes, sir. And so it's OK that it's a little shocking and weird to you and you feel a little off balance because you've been doing it so poorly for so long, that to learn to do it right is very difficult and you're going to be great at it.
00:17:11
You've just never bothered before and you're going to do great. I'm so proud of you.
00:17:16
This is. Well, thank you. Yeah, and you know what Ramsey plus is? No, not yet. It's a subscription thing that we have where you get access to Financial Peace University and you go through a nine week class on how to handle money. It's way down deep into what the total money makeover teaches. And there's a budgeting software in there called Every Dollar, a budgeting app called every dollar. That helps you do that. And there's groups in there to support you and there's coaches in there to support you.
00:17:48
And there's a tracking app to track your progress and cheer you on called the Baby Steps Tracker app as you work up those baby steps. OK, and so we're going to do since your brand new at walking is, we're going to put you in the world's best program for walking and we're going to walk with you and show you how to do it. It's called Ramsey Plus, and I'm going to pay for it for a year for you, OK?
00:18:12
Oh, my goodness. And if I do that and I give it to you, I want you to call me back and yell, I'm debt free someday soon, OK? I will. All right, you hold on, Kelly, I'll pick up. We'll get you signed up for this. It is it's you know, the hardest part of transformation is the first steps of anything, anything you want to do it because you're so unsure, you have no confidence.
00:18:42
You have no stability. Now, tons of fear to you could hear what am I going to do about a car? It's a legitimate fear. And as you walked her through it, now she's soaking on that. She's going, OK, all right, OK. It's a whole new paradigm.
00:18:58
You just shifted it. It's the same thing when you're talking about careers. It's a brand new thing to think about leaving this job after 10 years, that's all. It's a scary thing. And it should be scary because you can't see it. So what you have to do is keep working, too. You can see it when you can see it, you can achieve it. 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.
00:19:35
With none of the drawbacks of traditional home security, professional monitoring keeps watch ready to send professionals if there's an emergency. All this starts at 15 dollars a month. Try today at simply safe direct dotcom. You get free shipping and a 60 day risk free trial. Ramsey personality Kevin Coleman is my co-host today here on the Dave Ramsey Show in Springfield, Missouri. Justin and Alice Alicia are calling in to do their debt free scream. Hey, guys.
00:20:17
How are you feeling, Dave? We're good.
00:20:20
Welcome. How much have you paid off?
00:20:23
We paid off fifty one thousand nine hundred and fifty dollars and eighty cents. And how long did this take? It took us two years and seven months. All right.
00:20:31
And your range of income during that two years and seven months? Well, we started with fifty six thousand and we ended up with forty six thousand. OK, cool.
00:20:40
So what kind of debt was the 52000? Pretty much a little bit of everything. We had two auto loans. I had a FSA youth loan and then we had six credit cards. Wow.
00:20:52
OK, so you were kind of normal. Yes, just a little bit. How old are you two? I am 26. And Alicia, how old are you? Twenty four. Awesome. Very cool. So what happened two years and seven months ago, they put you on this journey?
00:21:10
It's a great story. We were actually in Okinawa because that's where I was stationed in 2016. And I started a men's Bible study at our church or joined it. And it was the thirty three series. And it talked about the man being the financial provider in the marriage and talked about being able to give your wife the option not to work outside of the house. And I mentioned you at that point in time. I had never even heard of you.
00:21:39
And I felt like God is really just speaking to us about something we talked about. So I read your book, The Total Money Makeover. Actually, I listen to it about 30 times on my.
00:21:52
You're there. I'm here. Can you hear me? Yeah, you're cutting in and out. OK, so you listen to the book a 30 something times. And then what?
00:22:00
And then it just really got me on track to want to provide a better way for my family and change that tree. Cool.
00:22:10
So, Alisha, he comes home and he's kind of going crazy, what you're saying. Oh, gosh, Steve, I was I wanted to be normal. I was not the person on board. He jokes with me and we listened to your show several times about your name being a cuss word in our homes. And that was he was just hounding me all the time. And at the time, you know, I've done some some sales growth there.
00:22:38
I was being selfish. You know, I wanted to. Some things we hadn't had any kiddos yet, and I was going to school, never had student loans, though, and so he talked me out of doing that, which I'm very grateful. And so I continued to work and we paid off a bunch. We actually stationed overseas. And then we just got back to the states a little over a year ago. And when we got back to the states a year ago, we found out we were pregnant.
00:23:07
So it was perfect timing. Yeah. Yes. And now our little one is 10 months. And we were debt free when she won. I think she was three months old. Yeah. It's just been a crazy journey. Yes.
00:23:20
Very cool and fun.
00:23:21
Well, what do you tell people? The key to getting out of debt is, guys, you did it. Staying current and having the discipline. No discipline seems pleasant at the time, but later on, it yields the harvest, the righteousness that and I just I listen to your radio show just about every day. So just hearing everyone else doing the debt free scream, it just it really kept me motivated to get to that point.
00:23:52
What was the hardest what was the hardest part of this for you? A change in your lifestyle.
00:24:01
Stop going out to eat with my friends at work, brown bagging our lunch and saying no to people when it meant to go and spend stuff, which is funny is actually my co-workers at my last station, they put on my go and weigh Plack a quote said, it's not Dave Ramsey or Dave Ramsey approved.
00:24:23
Oh, very cool, you guys. Very cool. Well, we've got a copy of Chris Hogan's book for you Everyday Millionaires. We're very proud of your heroes. Well done. Thank you for your service. We appreciate that.
00:24:34
And Justin and Alisha, 52000 paid off in two years and seven months, making 56 to 46. Count it down. Let's hear a debt free scream.
00:24:47
Three to one. We're dead free. Yes. Well done, you guys, very, very well done. All right, Theodore is with us in Topeka, Kansas.
00:25:06
Hi, Theodore. How are you? I'm good, dear.
00:25:09
How are you? Better than I deserve. How can can I help?
00:25:13
So this is going to be more of a canned coffee on the back porch type of question. So I'm a banker and I'm trying to figure out what kind of, you know, what can I do in my career that's less contradicting. You know, I do loans, home equity, things like that. And every time I get someone in to sign a loan, I just want to reach across the table and smack them because I'm just like, what are you doing?
00:25:36
You know, I like and I just I feel so unfulfilled. And, you know, I just just go into work every feel uncontradicted.
00:25:45
Yeah. Well, so you've been thinking about this long enough to make this phone call. The question is, have you put any thought into what you would really love to do, whether or not you think you're qualified for it or not? I just want to know, what would you love to do if we could just transition you out of this and you start Monday morning, guaranteed success? What would you do?
00:26:07
I love the financial coach people, to be quite honest with you, not necessarily as an investment advisor, but just walk people through their finances. Yeah. Why is that?
00:26:16
Give me the why. I love that, I love people, I love helping them, you know, I think the finances are a big struggle for a lot of people. And if I can help them overcome that one little thing, I mean, what you guys and your company have done for me is fantastic. And it's not only just changed my financial life, but all aspects of my life. And if I can do that for someone else, you know that that fulfills me.
00:26:41
And do you love the idea of working for yourself? I do, absolutely.
00:26:45
Well, that's entrepreneurial.
00:26:47
Well, that's what that destination involves. And and so, you know, we talked to so many people, Dave, on his show me on my show that want to be financial coaches. And, you know, this is all about getting to a place where you can actually coach people are financial coach, master training program. That's where I think you ought to start, because, again, you get the double benefit of learning the coaching process. They know how to do it.
00:27:11
Well, it can make you a better coach. And then they're also going to walk with you to help you grow your business. But you need to understand that this isn't a I walk out of banking and I hang a shingle and I'm immediately making enough money to sustain myself. How much money you make right now?
00:27:27
I make forty five thousand a year. All right.
00:27:29
So we've got to come up with a plan that involves either you replacing that forty five thousand dollars a year in a job that you can do. You have the talent to do it. It may not be the dream job. In fact, it won't be. But it's a day job where there's not this wrestling match with your values every day or and I'm OK with this one if you can get there. I know Dave is going to speak to this, but can you get to a point in the banking job or you realize I'm not doing anything illegal and I'm not being unethical.
00:27:56
I am pitching a product and providing a product that I personally, I don't I don't like it. I think it's bad. I'm a cash guy. I'm a no debt guy. But you can stay there long enough to get to the point where you build that financial coaching business and you step into it eventually because you're going to have to build up that financial coaching business just like an entrepreneur, one client at a time to where you're making, you know, close to 45.
00:28:21
Or if you can get six months of your living expenses in the bank and you believe in yourself, then that's an approach. But that's what's facing you right now. And you've got to decide which is the best way to get there.
00:28:33
Yeah, all of that makes sense. Every bit of that. I mean, it's just hard to, you know, be a health nut and do marketing for McDonald's.
00:28:40
It's very difficult. Yeah. I guess it's just it it's hard. And because it wasn't incongruent, it didn't feel hypocritical for you when you started. But now you're feeling that way. And we didn't we didn't tell you to feel that way.
00:28:57
You called and said you felt that way. So I mean, I don't shame people for being in in that industry. There are in quotes, good bankers. I sometimes meet people in a social situation. Oh, well, you won't like me. I'm a banker. I'm like, I don't hate all bankers at all.
00:29:12
Not even close. But but, you know, some are more scummy than others, like every other industry. But obviously, you know, there are people that do a good job and, you know, keep people's best interest in mind. Tell someone not to borrow money. Sometimes it's just irresponsible. They won't make a loan that they could make.
00:29:30
And you could start doing some of that as long as your firm allows you to exercise judgment in that way. But, yeah, I think you're going to make a move to something and I can give you a good man. Our Scripture of the Day, Psalm 119 165, great piece, have those who love your life, nothing can make them stumble. Washington Irving said little minds are tamed and subdued by misfortune, but great minds rise above it. Ken Coleman Ramsey personality is my co-host today here on the air.
00:30:28
Laura is with us in Meridian, Indiana. Hi, Laura.
00:30:31
Welcome to The Dave Ramsey Show. Hi, Dave. I have a question. We have a whole life policy on my husband who has sold.
00:30:41
He's how old when your phone cut out? He's how old? He's 70, OK. And it's for a hundred and forty six thousand dollars through the Hartford. I think it is. Mm hmm. Should we we we we actually don't need that much money. I mean, we could bury him, but I'm 69. We're wanting to know if you think it would be a good idea to cash out the cash value thirty seven thousand rather than rather than keep the insurance.
00:31:18
How much of a nest egg do you guys have? Yeah, a million. Over a million. And that our house is paid for. We don't have any debt except for an RV that we that we purchased several years ago. Other than that, we're debt free.
00:31:34
Very good. What do you owe on the RV? 100000.
00:31:38
OK, good. Nice RV. All right. It is. Well, you're a millionaire. And if he died and you had no insurance, I think you're OK financially, don't you? Don't you? I do. But the thing about it is why we have to pay five hundred dollars a year premium on this insurance.
00:32:03
Not anymore canceling it. Well, I mean, it's yeah, exactly, but they said thirty seven thousand dollars cash value and then of course we have to pay taxes on that. Nope. But when know when we there are no taxes on that, there are none.
00:32:19
No, because your basis in this policy is what you have paid into it and you were paid more than 37000 dollars into this garbage.
00:32:26
OK, that that was my question. Yeah. OK, that is that is a perfect answer.
00:32:33
So the way you and the way the way you answer the question is, do I have enough? Am I OK if he passes away financially? Am I OK if he passes away and we don't have this insurance? If the answer is yes, then you can afford to get rid of the insurance. If you had zero money, I might be telling you to keep it right. OK, you see the difference. But it's not a good policy and it's a horrible place to have that 37000 dollars sitting.
00:33:02
I'd rather you pay that on that RV and let's get that RV paid off and get rid of that five hundred dollar bill and then just make sure you've got everything lined out with the investments. You know where they are. He knows where they are. We have a plan when either one of you passes so that the other one knows exactly where everything is and how it's going to go down and how you're going to be taken care of with that million dollars.
00:33:24
Very well done, Laura. Very impressive. Every day millionaires can. Yeah, really impressive.
00:33:31
Would would you recommend they do anything else with all that money they've got to pay off that RV or you're saying slap a 7000, slap the 37 37.
00:33:38
I'd find another sixty somewhere out of that million, you know. Yeah, because that's a sweet ride. I guess I'd be debt free. Yeah.
00:33:45
They're millionaires. They can afford the RV, but I wouldn't be I wouldn't be run around with payments on it. But yeah, you're right.
00:33:51
And let's clear the clear the whole life policy, clear the debt and then you've got a real clean, very straightforward situation. Make sure there's a good will. Everyone needs a good will and you know, your kids. And if you've got children and each of you as spouses need to know where everything is and what the next step is. When someone passes open phones at eight eight two five five two to five.
00:34:20
Up next is going to be Ray in Houston, Texas. Hi, Ray.
00:34:24
Welcome to The Dave Ramsey Show. Hey, gentlemen, thanks for taking my call. Sure, what's up? So this that a potential career change question. Currently, I'm a pilot and my wife and I, we make really good money, but I feel like I want to become a financial planner. I love flying. It's great when there's not a pandemic going on, but the impending furloughs is, you know, getting to be too much. And now I have a family to think of with a new wife and everything.
00:34:54
So I want to be a financial planner and I can get a CFP certificate or I don't know if that holds enough weight without getting an MBA and finance or CFA or something like that. So I was wondering if I can just get the certificate to be good or if I should go ahead and get the MBA as well, or what I should do in that regard. CFP will be just fine, OK? Yeah. You don't you don't need an MBA, but you don't need an MBA to be a planner.
00:35:18
Not at all.
00:35:19
A CFP is a more thorough CFP is a more stringent course study than an MBA study is when it comes to the issues of personal investing.
00:35:29
You can get an MBA and not learn anything about personal investing. That's. And the CFP is a laser focused on this, and it's very stringent. I mean, it's like getting a CPA. It's a very tough program. And so it's a it's a good program.
00:35:46
I will warn you to go ahead and prepare yourself to challenge some of the standard conventions of the financial world, because, you know, some of the stuff that's taught in the CFP coursework, I don't agree with.
00:36:01
In other words. But but it is a wonderful designation and the knowledge base is very thorough and very good. I just I just don't want you to become part of a herd, is all I'm saying. You know, keep keep the ability to think for yourself in that process.
00:36:17
But so, again, we're having, like, a rash of people, wannabe financial planners or financial coaches. What do you get this every day on your show? You would be surprised at how many people want to be either financial coaches or they're not saying career coaches, because that's not as widely known of a term. You hear life coaches, but we get a lot of people that I'll ask them won't do it.
00:36:38
You know, they want to. And I go, oh, you want to do what I do? Or you wonder what Dave does.
00:36:42
And that's to be expected because they've had profound life change happen more so on your side of the aisle. But I want to address something very quickly, because I think a lot of people that fall into the myth that Ray fell into twice, he asked you twice. He came back to the same question. He said, So you don't think the NBA will give me more credibility? He didn't use the word credibility, but I'm I'm inserting the word credibility.
00:37:04
That's what he was saying. And there's this myth out there that a graduate degree is going to make me more impressive. Now, is a graduate degree impressive? Yes. But in this particular situation, the CFP is much more relevant, A, and then B, if he spends his time connecting with other financial planners that are successful and he begins to go to lunch with them and say, tell me what was really work for you and your first two to three years and really go to school on studying successful people in that field and making good connections.
00:37:36
They are going to see his humility. They're going to see his hunger, and they're going to see his gratitude if he does all three of those things. And I expect that he would and they will open up doors for him that the NBA would never open up. And I just want to point that out in this situation. He was thinking, well, if I get the NBA, it makes my name look more impressive. No, it doesn't.
00:37:55
No, it doesn't at all.
00:37:56
You know, because truthfully, probably 90 percent of the people that come to you for help with their finances don't know what either one of those are know and don't care.
00:38:08
They just want help. And you help me.
00:38:11
I've never asked all of my doctors to go to the back of his office and pull out his diploma and show me before he treated me.
00:38:17
Yeah, not once. Not once. Nor did I ask where they went to school. That's right. Not once. Not with an attorney. Not the only thing I'm asking is can you win? I think I'm asking, can you do the job? Can you can you can you get the trademark done? Can you execute a contract? Can you you know, all I care. You know, I don't really care where you went to Cornell. I care.
00:38:37
I just want to know, can you get done?
00:38:39
And if you can get it done, you don't really have to have anything in your name except what the law requires.
00:38:45
And by the way, they'll go tell a ten other people that you helped change their future and that's how you grow your business. I don't have a CFP. Yeah, I don't have an MBA. Well, neither do I don't I don't have a graduate degree. Yeah, I'm a lowly undergrad.
00:39:01
I don't even have that. I started in politics and then never went back. Oops.
00:39:09
There you go. And this is who you're listening to.
00:39:13
Yes. We are inserting confidence at alarming rates.
00:39:20
Oh James Charles is our producer, Kelley Daniels, our associate producer and phone screener. I'm Dave Ramsey, your host. We'll be back with you before you know it. In the meantime, remember, there's ultimately only one way to financial piece, and that's to walk daily with the prince of peace.
00:39:33
Christ Jesus. This is James Childs, producer of The Dave Ramsey Show. You can listen to Dave, Rachel, Chris, Chris Hogan for the rest of the Ramsey network anywhere with the Ramsey network app on your smartphone. Catch all of our full shows, browse by topic or send clips to. Head to the App Store and download the Ramsey Network app, 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.
00:40:06
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. Why do we live like that? That's why I want you to check out the Christy Wright Show.
00:40:30
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 podcast.
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.