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Live from the headquarters of Ramsey Solutions, broadcasting from the car rental studios, that's the Dave Ramsey Show where Ned is dumb. Cash is king. Made off home mortgage has taken the place of the BMW as the status symbol of choice for SOCAN Remzi personality number one bestselling author is my co-host today here on the air.

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As we talk about your life and your money, open phones at eight eight two five five two two five.

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That's triple eight eight two five five two to five. Michael is in Oklahoma. Hey, Michael.

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How are you, Mr. Ramsey? I'm doing better. And they're still just the same, sir. How can we help? Well, I was listening to you. You know, your little mini shows on YouTube for the past about two months came a little late to me. I'm 26. The in February, I started looking for a vehicle, a more dependable vehicle, and my brother's a car salesman. You know, I went in there with a budget and came out with a car.

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Yeah, yeah, I thought I'd check out like it was outside my budget unless I come back the next day, my dad and brother have a surprise for me. They went ahead and got it. And my dad did it under his, you know, took a loan under his name. And so now I'm obligated to pay it. And it's way out of it's two hundred dollars over. My budget was originally and it's make me bleed like a pig.

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Yeah.

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Well, thanks, Dad. So when you're selling it for. And then, you know, I want to so I think that's why I need to do. Yeah, they came from a place of love and I think you want to be in a nicer vehicle, but it's it's just not working out for me. No. OK. The. So I know that the answer is to sell it and. I had one more question, if you have time for a quick.

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I'm a diesel mechanic here in Oklahoma. And. Are you there, Mr. Yeah, we're here. Sorry, guys. And I'm working for my boss and I've been working for him going on two years and you haven't had a pay raise, so I'm making twelve dollars an hour to diesel mechanic. And how do I approach him about, you know. That, yeah. Have you got any of the certifications as a diesel mechanic or you just been working there with it?

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No, I was in the Navy previously. I was the aviation sector mechanic. And before that I went through in high school and went through Rohtak and got all my associates. Sounds awfully cheap, 12 dollars an hour. Like, wait, cheap. And what's that? I mean I mean, I think I know these guys making 60 or 80 grand with what you're doing, don't you? Yeah, the one down in the oilfield, they're making a lot of money, they're making more than that off.

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Hmm. Yeah, but I'm talking about just a straight up diesel mechanic, you know, plus or minus some overtime, anywhere from 60 to 90. The ones we're run into.

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Michael, do you have any openings? Have you done any research on other availabilities in that in that market? A bunch of indeed and you know. There's. There's opening's. It's it's I just stay so busy in my budget is so tight that if I take a day off and shoot myself in the foot, so if it's kind of like a I can't afford to do it, I can't afford not to do it.

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And have you investigate what the openings are paying, Michael. I mean, they're starting out at fifteen an hour, you know, so I mean, they're starting out more than where.

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Which is still low. Green, that's still low.

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Yeah, I would say this, but here's the thing. We got to get your confidence back. So, first of all, let's get rid of this truck. Let's get go find out exactly what the payoff is for a 30 day period. Go look up on Kelley Blue Book. Get intentional about getting this thing out of the life. Go ahead and have the conversation with your dad and let him know, hey, this is not something you can afford point blank and don't go backwards there.

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The other thing I do is I'd go sit down with your employer, let's be adults, be straight and talk about, hey, this is where I am. This is what I'm striving to do. What more do I need to show you? What can I do?

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But Dave, I think he's got hairs for his four job offers in the open market that pay 15 to 20 dollars an hour. Yeah, and you're paying me twelve. And I'm not threatening you. I'm just saying, what have I got to do to be worth that to you?

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So because I don't really want to look elsewhere, boom.

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And if someone comes in and sits down with me as the owner of this company and says, hey, you know, I do this for you, and there's a whole lot of people paying a lot more than that.

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I mean, I may say, well, you probably ought to go talk to them, or I might say, oh, gosh, I'm I guess I'm underpaying.

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Let's look at it. Right. You know, and we'll do a little compensation study. We do regular compensation studies around here. But a lot of small businesses don't do that and they just overlook it. And then they look up and they lose somebody good because they didn't have a conversation.

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Well, Dave, the other side of it is, is that you have the person that's on the team that's having this feeling that never outwardly communicates it. So they never give the person a chance.

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But don't bring don't come in and say, I think I'm worth more money, no. Or landing and don't be belligerent, but come in and go. Hey, look, here's three things in the paper, right, that are paying fifteen dollars. And here's one the seventeen here's one is twenty.

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And you know, this is what's out there and it just feels like twelve is not the market anymore.

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And tell me what I'm doing wrong that are what I need to do more to get to be worth what those are paying because I don't really want to answer any of these ads. I like being here. Boom. And that's a you know, somebody does that with me as the employer. I don't I don't get any chamber music. Oh, it might be a wake up call. It might be. I go, you know what? We just don't have it in the budget to do that.

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If you can get that, you probably ought to go do it. That's right. That's what's good for you. I'm I've told people that, too, but and you might hear that he might be going twelve dollars it dude.

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And but at least you can get it out there and that's how you approach them.

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You approach them with evidence and with humility and with open communication and then that. No.

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And if an employer does not react well to those things and is inappropriate or angry or something, then that's means they're a jerk. Yeah, it doesn't mean you did it wrong.

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But let's get your headspace back, because so many people will play this over and over in their head instead of verbalizing it outward. Be proactive.

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Johnsen's in San Francisco. Hey, Johnson, how are you?

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I'm doing well. How are you, Mr. Ramsey? Great. How can I help? Thank you so much for taking my call. So I'm a 24 year old college student and I was raised in the family who was not great with finances. So I made a lot of credit card mistakes in my early 20s. And pretty much I have thirteen credit cards, all defaulted to collections. I paid a deposit on a debt relief consultant who was going to be in charge of the New Seasons and Tait's dillie and credit rebuild.

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But I realized after watching your video, I can do that myself and I really want to take control of my finances this year. So I learned your system and I should be finished with baby step number one this week. Good. And yeah, thank you. And however, my question was, I only have three of the collection, so I hope my credit report do.

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I only worry about those three now you got to give them all only because they're all going to show up eventually and they're all debts that you legitimately. Oh yeah. And you've got to go look at all three credit repositories, TransUnion, Equifax, Experian. Don't just go with one, get a try merge of all three so you can see what's going on. Then you can do debt verification, then you can start to deal with them upfront. You've got to clean them all up and stop thinking.

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You can hand this off to someone else. You need to have a business of your company. He's doing that. Yeah. You got this. You can do it. At Takeover's, we believe a great pair of cowboy boots should be comfortable right out of the box so you can stand with confidence no matter what the day throws at you. We believe in the enduring quality of handmade boots, and we believe that your hard earned dollars should go far.

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Chris Hogan Ramsey personality is my co-host today here on The Dave Ramsey Show, you jump in, we'll talk about your life and your money. Randy is with us in Hanover, Massachusetts. Hi, Randy.

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How are you doing? Great. How about yourself?

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Better than I deserve. What's up? So I just have a question.

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My wife and I just recently got into a business, some business, and we were making more money than we've ever imagined in our life.

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Wow. Good for you. What do you make it? No, it's a it's a true blessing. And we're super grateful. And no, just got who continue to bless our and our family. How much are you making? I mean, from.

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Excuse me, how much are you making. Um, let's probably this year, this year probably did more than 500.

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Wow, good for you, man. Congratulations. So thank you. Thank you. Thank you. But again, where we come from, I did military for a long time, so we had that and then so come from very humble beginnings. And so now that we're making this income, we follow the budget, but we give ourselves a very I can't think of the word, but we just give a very modest budget and we feel bad spending money.

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And at this point, we're just like we put all this money to the side and we're like, we're giving we're put it in for retirement. We're doing this thing saving up for our kids college fund. What else should we be looking to do with this?

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Very good job. Well done. Well done. Well, Chris and I have worked with professional athletes and artists and so forth over the years and other just uber successful people with huge incomes.

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And many of them struggle with this because most people didn't start out with this. And by the way, thank you for your service to the country.

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And I'm glad that you are have become uber successful with your income.

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And so what we teach people to do is come up with a basic budget, not a modest budget, but a basic budget like we were with a football player a while back.

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Chris and I were sitting there and we just got a yellow pad which did it right quick. And he's like, you know, he's kind of a tightwad guy.

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He wants spending money and he but he's making serious bank. And we said, all right, what is a good budget? And he said, oh, fifty thousand a year. And I went, No, dude, you're making millions. Shut up, OK? Fifty thousand, you're stupid.

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You need to have a better budget than a budget where you can have a decent, enjoyable life without and you can do the funding of the retirement funding of the kids college.

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You can, you know, purchase a car every so often. What's the budget? I think we ended up with him. We finally got him up one hundred twenty thousand ten thousand dollars a month, pulled some teeth, but we got him there.

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But he was like he's like making 800 grand a year. Right, right. Right. Same as your situation. So we set a basic budget. And this is what Sharon and I do, by the way, as well, because we've got a good income.

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And so we set a basic budget like that and then we run our household on that.

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Then everything above that, we apply a percentage formula to it. We're Christians, so we put 10 percent tithe. The government takes 40 percent.

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So that's half of it. OK, the other 50 percent, we spread across three things lifestyle increase, in other words, fun money, extra generosity, outrageous generosity and extra investing.

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So you got 40 percent for taxes above your budget, you're going to give away 10 percent, that leaves you 50 percent. So divide that 50 percent up and spend something on extra fun. So here's an example. If you put 10 percent on extra lifestyle, that would give you your regular household budget and 50 grand to blow on cars, trips or whatever.

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And that leaves you still 40 percent to invest and to split up among outrageous generosity. So every time I get a check from a publisher, I got one today. Total Money Makeover check came in today. And that's always a good day. And that check came in today. So, you know, what I'll do is it's real simple just to apply that formula to it, 10 percent to 40 percent for taxes has to be set over for him. Think about it then.

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I won't put my percentage on investing, my percentage on increased generosity and a percentage on increased lifestyle. And what you'll be amazed is, is that you actually get to enjoy the money on the increased lifestyle, the giving you'll be you'll be thinking about it more because it's allocated.

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It's already kind of like doing a budget. It's already spent. And so when we do that, it frees people up.

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It really does. And, Randi, it open you up to my friend and I think you and your wife sitting down and making that list of goals of the things you're looking to do or maybe the trips you're looking to go on. What would you do to Seattle? It'll help you kind of get out of your head and get on to paper and say, hey, this is what we're excited about, or the room in the home that you're going to renovate or whatever it is, it makes it more practical and it makes it more exciting.

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Yeah, I got a buddy of mine that's building habitat houses out of his outrageous generosity. And so every time he gets a big old check, he gets more excited because that's that many more habitat houses he can do and see that that formula I just used to work with five million a year. It'll work with 500000 a year.

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Mm hmm. Right. I love it. Thank you so much, appreciate that. And we were just talking about last night, dreaming in HD recently, got Buddy trying to set up that date where we can zoom in HD, you know, really.

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And what you're doing now is a different level of dreaming. Yeah, OK. This is now legacy dreaming. Some people are dreaming about when they're out of debt that they finally get to go on a vacation. OK, you're way beyond that. We're talking about completely changing your family tree, massive amounts of money into some a couple of ministries to completely reshape your community with your generosity.

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I mean, like you talk about a guy starts building multiple habitat houses.

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This is a guy that's fired up, OK? Or, you know, you start buying tractor trailer loads of bicycles to give away and, you know, an inner city area where people are struggling with a ministry there and it's not two bikes. You're starting to do stuff with scale because you've got the capacity to be outrageously generous, outrageously change your legacy.

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And, you know, it works beautifully. Hang on. I'm going to send you a copy of the last book I did, which was Legacy Journey, which is all about living in that level of thinking. And it's a different place to get your brain works different.

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It really is. And for those of you out there, you hear him say dreamin in HD. I talked about that in my first book, Retire Inspired Dreaming in High Definition, like you can see the details in a high definition TV. I want you to see those kind of definitions in your dream. But we can't just dream we got a plan. So go over to my website, Chris 360 Dotcom, and I'll talk to you about having that dream meeting.

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But I'll also show you the RFQ, which is the return spa quotient free tool to help you identify how much you're going to need to live those dreams.

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You know, it's important and I think I want to point out there is, Chris, you know, what happens is as you reach different levels of wealth, the first one is just to get debt free so you can breathe. Right. I'm not free to scream. Right. Then you got your emergency fund. Your dreams start to change.

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Yes, because for so long, we lived just hand-to-mouth in survival. Yep. And your dream was Friday. Yes. You know, and then your dream starts to be Christmas and then your dream starts to be, you know, I'll pay cash for the kid's college and then your dream starts to be, you know, and then your dream starts to grow.

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And then because and they should move at different levels because otherwise, you know, you don't have anything to reach for and you get bored.

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That's exactly right. And then you lose that motivation. Hey, we were talking about the bicycle's remember the Aintree leadership thing we did down in Florida. We put together by car. I'd forgotten that. And we brought these kids in and the little boy that I had had never written a bike. And so the bike that I worked on, thank God there were other people there to make sure the bike stayed together. But but I got a chance to kind of help him with that bike and kind of riding around.

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And I just I'll never forget that. That was a moment that I know those kids will never forget. But also those leaders, they're being a part of that. They'll never forget that. And that's very cool.

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It really was. That kid was scared to death. He had to learn to ride a bike just because once you let go the seat, he was Minggao.

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He was not going to let me go.

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OK, we're strong people, strong, so I'm scared to death. That was a lot of fun. It was we did a team building thing. We bought a bunch of bikes in and thereby had to jump in random teams and this leadership thing and everybody had to put the bikes together.

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I've gotten that's like five, six years ago. It really was. And then we had the kids lined up to come in and get the bikes, man. And that was just a little small.

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It really wasn't a scale to that, but it was it was a good leadership activity. And then, you know, you put the icing on the cake with the generosity. That's right. That's exactly right. Yeah, that's fine. Good stuff. This is the Dave Ramsey Show. If you struggled during a normal year to pay for that time share, how big of a burden is it now? Get out of it.

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Call time share exit team. When the time share turned you down, time share exit team will go to bat for you and get this. When you hire time share exit team before the end of the month, they'll give you a huge savings for paying by cheque or auto draft. Call eight four four nine nine nine exit or time-Share exit team dotcom. Some exclusions apply see site for details. In the lobby of Ramsey Solutions on that debt free stage, Matt and Sarah are with us.

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Hey, guys, how are you doing? Cool. So where do you guys live? Huntington, West Virginia. Oh, right outside Huntington. Yeah. Good. Well, welcome.

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Good to have you guys and all the way to Nashville to do a debt free scream. Yes. How much you paid off?

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75000 439 dollars. All right. And how long did that take? About two and a half years.

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Good for you and your range of income during that two and a half years.

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Probably a little over 100 to about 130. OK, what do you do for a living?

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I'm an outside sales, outside sales management, and I'm a preschool teacher. Oh, cool.

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Very good. Well, kind of. That was a seventy five thousand dollar.

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We had a little bit of everything. We had student loans, a couple of cars at one point, personal loan, a couple of credit cards. Your kind of normal.

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Yeah, just bopping along. How long y'all been married?

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16 years in July. OK.

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Oh. So what happened two and a half years ago set you on fire? I think the biggest thing for me, it's always been something I thought about. But one thing that kind of triggered something for me was about four years ago, I'm a runner and a broken bone in my leg. And Miles had sales positions, ten, ninety nine positions. So if I don't work, I don't get paid and I just have to break the bone on my left leg so I could still drive.

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So for six weeks I got out and did outside sales on crutches. Oh.

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But it made me, you know, it scared me, made me realize what if that meant other like we would wait six weeks without an income and we wouldn't made it.

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Yeah, that wasn't good. So what happened two and a half years ago that got the you got your start on this plan?

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I think that was when we started getting really serious about it. OK, I guess, you know, for a while we had, I guess, done probably what would qualify as Dave ish. Mm hmm. So you'd heard about us and what we teach, but you're just a part of it. Yeah, right.

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I actually bought the book about eight years ago. I was kind of skimmed through it and then put it down and made a good coaster ride on the coffee table.

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Right. Sarah, what was the biggest sacrifice for you?

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Um, I think just not being able to shop whenever I wanted to use in the credit card, um, things like that, I gave all of that up. So what do you all tell people?

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The key to getting out of debt is now that you did it just to stay focused, just keep going, find something that motivates you, because there's going to be times when you don't really feel like saving money. You rather go out and spend it. OK, so who started this?

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Which one of you?

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I think it was kind of a joint decision, but really I yeah, she bought the book first and you know, she talked about it first. Probably I spent an outside sales a lot of time at my car. Yeah. Quit listening to the negative talk radio several years ago and started listening to podcasts.

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Oh, cool. OK, good for you. All right. So eventually the book comes off of the coffee table. Right.

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And that got the little ring on it from the coffee, coffee, cup of coffee sitting on it and you guys get it open and then you just start it two and a half years ago, right.

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Yeah. He had been listening to a podcast or did your podcast. OK, so we kind of used that as motivation as well to keep on track.

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Mm hmm. OK, and again, what do you tell people? The key to getting out of that is you said what, to stay focused, stay focused. What about you, Matt?

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I would say I would, you know, use something related to running, I would say, to keep in mind it's a you know, it's a marathon, not a sprint. Mm hmm.

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That's important. Yeah. Because, I mean, a lot of things you can knock out really short periods of time. But this is not one day. Two and a half years is a grind.

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No, you especially you start talking about student loan debt and a couple of cars, you know. Did you all have anybody in your family cheering you on throughout this journey? Not really. We don't really tell a whole lot of people.

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I mean, I know I remember mentioning it a couple relatives, but when we no longer had car payments and I think, you know, they kind of looked at us like where we're from Mars.

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Well, you are weird now. You're officially weird. You are the first time you all have been debt free and since you've been married.

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Yeah, definitely. OK, how's it feel? It feels great. Was it worth the sacrifice? Absolutely. Well, you go back. No, no, never. Never.

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OK, and this is your young daughter with you. What is her name and her age.

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She's Belle and she's fourteen. OK, so Belle been watching all of this. Yes. So is she indoctrinated now? She's not going to go into that. Right. I sure hope so. Oh, I'm sure Bill made some sacrifices, too, along this journey, right? Yes, he has. Know you get to go along for the ride, that's for sure. I like it. Well, congratulations, you guys. Very, very proud of you.

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Very well done. We've got a copy of Chris's book for you every day. Millionaires', that's the next chapter in your story. Bring it, baby. Keep on. Keep on running. Don't stop. You got it, man.

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Very, very, very well done.

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All right, Matt, Sarah and Bill Huntington, West Virginia. Seventy five thousand dollars paid off in two and a half years, making one hundred.

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One hundred and thirty. Count it down. Let's hear a debt free scream. One, two, three.

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One, two, three. Yes. Oh, well done, you guys, very, very well done. Wow, first time in eight years they've been debt free. It's amazing. Most people live their whole lives.

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That's right. Our Question of the day comes from Blind's dotcom. They have a 100 percent satisfaction guarantee. That means even if you miss measure, you picked the wrong color, they'll remake your blinds for free, free samples, free shipping, new promos. Every month you'll save even more.

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Use the promo code Ramsey to get the best deal. Chris question.

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Yeah, this question comes from Louise from Ohio. She says, I open an artery in 2011. It has now reached the nine year period. Will there will be no penalty for the from the company for withdrawal. It's capped at its three percent earnings interest rate, which is pretty pathetic. So I want to take the 37 K out and use it to pay down my mortgage, my only debt. I'm worried the interest earned will be tax when I take it out.

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Or I may have some penalties because I'm only 27. I did some research and I think I can take it out without penalties. If I have it directly, go to the mortgage company and never hit my account not to do. Yeah. Do you think this is a good plan? Well, here's the thing. I look at this, Dave, and I would tell Louise, listen, if that's your only debt, I like the idea. We got to get this IRA moving and better invest it for you to do better than that.

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But I like the idea of you being intentional. Let's let this money grow and experience some real compound interest.

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Yeah, you just had it invested poorly in sort of. Yes. To if you pull out an IRA normally early, there's a 10 percent penalty plus your tax rate. There is a part of the Carers Act is allowing you to pull it out without any penalty. Right. Without the 10 percent penalty, but only your tax rate right now.

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I still don't recommend that. Instead, I don't want to give the government a third of this money because they're going to get approximately a third of it, give or take. I'm going to roll it to an IRA with a smart Vesterbro and some good mutual funds that are making a whole heck of a lot more than three percent.

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Yeah, you just got a bad you got a bad investment inside of this, as you said. Pathetic. That's a good word for it.

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Yeah, but Louise, I'm proud of you, 27 years old. You're asking these types of questions. You're engaged with your money and that's a big deal. Go to Dave Ramsey Dotcom so you can find a smart Vesterbro. We can get this money out of the hammock and get it working for you.

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Yeah, that's what it's doing. It's just laying there, taking a nap. Yeah. And, you know, the interest earned is taxed and for that matter, the whole balance will be taxed. If you take it out now, it will not have a penalty up through September because of the Keres Act. And so you could take it out and put it on the mortgage, but I wouldn't instead I would roll it directly into an IRA. You do not have to pay it directly on the mortgage to avoid the penalty.

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I don't know where you read that, but it was wrong. There's never been a program that let you put it on your mortgage without a penalty, not been one out there.

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You know, it's just it's not one of the regulations regarding their individual retirement accounts.

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So click Dave Ramsey Dotcom and click on Smart Vestre. It'll bring down a list of the smart VESTER pros in your area. You can select which one you want to work with and they'll try to help you get that done. And then you can get in the business to get your mortgage paid off. You've done a great job. As Chris said, he has very, very well done. This is the Dave Ramsey Show.

[00:29:53]

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The brand new book, Know Yourself, Know Your Money Well Pub and on January the 5th will ship them to you, but buy them early because you get the extra goodies if you do preorder today online at Dave Ramsey dot com.

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Jim is in Pittsburgh. Hi, Jim. Welcome to The Dave Ramsey Show. They are honored to be on nice to talk with you and Chris, you too, sir. How can we help? So at the rate around the end of last year, my wife and I finished paying ninety seven thousand dollars of debt, way to go. And yeah, thank you. It took about 10 months. It was our it was our intention to come down and do the screen.

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But, you know, life happens. Coronavirus happens, so. What we're looking at now, though, is we're looking at kind of what to do next, and about a year from now, we have the potential of having a down payment, say, for about a few hundred thousand dollar house. But I'm kind of really not interested in getting back into debt. And we had we're throwing around the idea of actually waiting five years, investing that money, and then maybe five or six years from now, having the money to spend cash on perhaps a three hundred thousand dollar house.

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I just wanted to get your thoughts on that. How old are you? Twenty eight, it's a great plan. I love the plan, I like 100 percent down plan. And let me tell you, let me predict for you what will happen. It will happen 25 percent sooner than you think. Hmm, you're going to get impatient and you're going to save more aggressively, like when you were getting out of debt because you're going to get a little bit of house fever along the way and you're going to pile up some cash and you're going to do it in four years instead of six.

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But that's wonderful, right, I think and also you're usually come up during that period of time, too, and now that you have a solid fixed goal, you're going to be 32, 33 years old and paying cash for a house. That's my prediction, because I've watched people do this a bunch over the last 30 years. And I think it's a wonderful plan. There's absolutely nothing wrong with that. You don't think there's any risk of having that money in some good performing mutual funds?

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Five or six years from now? 97 percent of the consecutive five year periods, any particular five year start on any year and go five years since the stock market began have made money. When you don't leave it alone five years, the probability goes up that you will lose some money. But I and I, you know, there's no there's no perfect formula, you don't know, but the historical indicators are that if you leave it alone at least five years and I make some money, you know, and Jim, I think you be zeroed in on this and understanding exactly how much you're saving each month.

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You know, I wouldn't open up. You know, you could you could park the money in the in the in the in your money market account if it's going to be three years or less over there, that you could definitely take a look at investing it.

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Some of it invest Somoza's an index fund with no no commissions on it or no load fund. That's what I do when I'm parking money short term. Because here's the thing. The money that you have for the house is not going to be due to the growth of the investment.

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It's going to be due to what you put in there. You're not you're not going to invest it long enough for compound interest to really kick in and be magical. Hmm. So what would you recommend investing it in? I probably given that this is a relatively large portion of your total net worth and it's a big hairy deal emotionally, I probably would put 50 percent of it into a money market and 50 percent of it into an index fund. And that way, the money market is not going to make anything, there's nothing to lose, losing things you got that is kind of your stable piece of the equation.

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The other one maybe is going to make a little and you're not going to feel so bad about making nothing.

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You know, but that index fund, it could go up, it could go down, but if it's if there's 100000 or cyphers, 150000 out of the 300000 that you have saved, when you get ready to buy a house in the index fund, if it were down 10 percent.

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That would be unbelievable. Mm hmm. Statistically, historically, but if it were, that's only 15000 and done. Keep you from getting your house. Which, by the way, the stock market is down. Stock market is down 10 percent over a five year period of time. Your house is going to be on sale.

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The property you're looking at is going to be a good deal. So, you know, the other side of the market's going to pick you up. So, you know, but that way, you know, you're diversifying. You got some and no risk and some in a little risk. And even that if it lost a little bit, it's not going to keep you from hitting your goals.

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It's not going to say I lost all my money in the stock market is not going to happen.

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That's not going to come up. So why did go man go good go. Very well done. Tinas in San Francisco. Hi, Tina. How are you?

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Yes, thank you for taking my call. Sure. What's up? My husband and I have been following your practices for several years. As a result, we are on goal for our retirement. Great. Thank you very much. We go on to your seminars in the area. Cool. So this is my question today. My husband and I want to leave the area and go to a state that's more tax friendly to retirees, which would be almost any state.

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Exactly. So my question is, around our current home, our home is paid for. And we are thinking about either having our 28 year old daughter. Live in our homes, pay us rent. Very little randt. Or just sell the houses and invest the money, and if she needs help along the way in her life, we could help her with real estate. We only have one child.

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B, B, sell the house. What's the house worth? I'd say probably seven hundred and fifty thousand what you pay for it. Two hundred and twenty. OK, you have no taxes. Because you're your first 500000 and gain married, filing jointly on your primary residence has no taxes and you're not going to get much more gain than that. You probably actually done some capital improvements as you came along and you'll have expenses when you sell it. So your net is going to be 500, K or less and no taxes.

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Take your tax free hit or take your tax free money. And you know, you're going the opposite of The Beverly Hillbillies.

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You're leaving California and you're coming to the hills. So come on, you can just we'd love to have you over here in Tennessee. You don't bring your vote with you.

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So there you go.

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I like the idea, too, of selling that. And that way you can come pay cash for the next home, set yourself up. But like you said, you're in a position to help your daughter if you so choose.

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There is a line on the interstate of people leaving New York and California. Oh, yeah.

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They can't get out of there fast enough because of the policies of these governments and governors on several different things. And it's just like, that's it. I've had it. I'm out. I'm out. And they they're Texas. You can't buy a house in Texas or Tennessee right now because California people buy them. And so we'd love to have all y'all, but don't bring your ideology that broke your state with you. You know, we love you. It's good.

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We're fine over here, though. We're sitting in. I think you ought to of it. I want a constitutional amendment. You're not allowed to vote for the first three years after you change states.

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Oh, you. Well, you know, that's how you protect the right.

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Well, who saw what happened to my beautiful city of Nashville? Yeah.

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Got invited, invited by the skinny Jean Bunch and took it over, you know, and now now they're now they're breaking the dadgum thing. It's completely broke.

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They've run it in the ditch. And so who are the folks again? The skinny Jean. You heard me skinny jeans for a while. I didn't stutter. No, I know. I just.

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You're not having been on that aisle. I'm just for a couple reasons. Yeah. There's a lot of reasons. A couple reasons. I guess baby socks is what I got and they squeak when you put them on Perkasa, she warned against me. Okay, she's. Oh, we love all you people. I love you more than others. This is The Day Ramsay Show. 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 podcast last year to get your daily dose of motivation and inspiration from the Ramsey network subscribe or follow today wherever you listen to a podcast.

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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. 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.

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

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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.