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From the headquarters of Ramsey Solutions, broadcasting from the Dollars Car Rental Studios, it's the Dave Ramsey Show where dad 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. You jump in, we'll talk about your life and your money.

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

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My co-host today on the air, Chris Hogan Ramsey, personality number one, bestselling author. We are here to answer your questions.

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Justin starts us off this hour in Moore, Oklahoma. Hi, Justin.

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How are you? Hey, Dave. How are you doing? Great. How can I help? Well, I'm a little bit frustrated and a little bit discouraged that I'm back on baby step to about 10 months ago. I ended up selling a car last month for 4500 dollars that had two hundred and fifty thousand miles on it, and I bought a cheaper car from a neighbor, got it all checked out at the mechanic. My dad is good with cars.

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He got it all checked out for me. Look like a really promising deal. I got a thousand dollars or a thousand miles down the road and the transmission went out. That's going to cost me twenty eight hundred dollars to replace this transmission, not in an 18 hour car that's there. And my other car now has a leak. And so I have to get that check that I was driving down the road today and it started overheating. So I put some coolant in it and I'm taking it to the mechanic.

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I'm just sick and tired of cars that are breaking down on me and repairs that I'm having to do. And I'm so close to being out of debt. I only have two thousand dollars of student loans and my wife's and four hundred dollars are just consumer debt. We had a household income of sixty two thousand dollars and we've been dumping six hundred dollars minimum on debt every month. I'm so close to being done with that. But these cars are just wearing me out and keep on set me behind.

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So I'm wondering if you have any advice for me and I'm sorry you are you are right there in the battle.

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I mean, you got bullets flying all around you and you are charging the hill to take the hill. You're a warrior man and you get weary, don't you? And especially freaking cars.

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Cars make me more mad and weary than just about anything else.

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I know anything recently. I mean, my old Honda that I mean, it was just repair after repair. After repair. Repair like, come on, I can I please just get ahead just just one time. Give me a break here Karingal. I know you know, it makes you want to take up firearms and just shoot the crap out of them.

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Right. That's it. I thought about that one. It was eighteen hundred that eight hundred dollar one without a transmission is a candidate. I'm just saying.

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OK, buddy. Buddy. Yes, yeah. Hey man, I feel your pain and I don't blame you. I will tell you that the people that I've talked with and also when Sharon and I were doing these exact same things, I've had those exact same feelings. This is like your breakthrough moment emotionally and character wise. It's going to set you up to win the rest of your life. It's like it's like God is saying this is a test of the emergency car sucks program.

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And we're going to see if you can suck it up and push on through just a little bit further because you're near the end and it's like the devil is trying to trip you right before you get to the finish line.

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And so you can do this and you're going to be really glad you did it.

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It is very hard and it is unbelievably draining.

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And it is very frustrating, though.

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I will I will give you all of that. But I will also tell you that by God, pushing through is worth it.

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It's worth it, man, because there's another side to this, the sun will come out tomorrow. His mercies are new every morning. There's another side to this and the other side of that is one year from today.

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Where are you going to be sitting? You can tell me the math.

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You're going to be sitting in two much better cars that are paid for and 100 percent debt free, and you'll probably have your emergency fund in place one year from today, but you got to struggle through one more piece of crap car.

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You've got to shoot the eight hundred dollar one, go find you another garage sale car to limp on out of the 2000 and then and the other 400 and then limp on up into the emergency fund and then go by God. The first order of business is I'll save some money and get some decent cars.

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That's exactly right. Just. And the next time, the next challenge and obstacle that comes, watch how you deal with it. So you're going to have some experience under your belt. You know, that real the things that you desire are going to come easy. They're just worthwhile, baby. So you keep pushing. You stay focused on this. Resist the urge to roll up on a lot and grab a payment. We're not going backwards.

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This is the point when people hit where you are right now that they turn left and go crazy and go, Lisa.

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Twenty thousand on a car.

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And it's all cause they just get so pissed off they can't breathe and they lose hope and they lose energy and no pun intended. But their gas tank is empty, right. Yeah. And so I appreciate you calling. What I want to do is first I want you to hear that it would be normal to be mad in this situation, be normal, to be harder, to be normal, to be limping.

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You've been in battle. Yeah. You've been swinging the sword, man. I mean, and you got some cuts and you got some bruises.

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But the other thing is that, you know, you're either going to lose the battle after getting this close or you're going to come out the other side and own the whole freakin thing.

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And that's you. You're going to come out the other side. You're going to fill your tank back up. You're going to breathe and go one year from today. This is all going to be over and will never freaking go back. One thing about me having driven that old piece of car crap car that was the friend of mine loaned me, I didn't even own.

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It is a Cadillac. The predominant color was Bondo at four hundred and seventy eight thousand miles on it.

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It wasn't an eighteen hundred dollar car, it was an eighteen dollar car. And I was driving it into my neighborhood.

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Cops are following me because they couldn't figure out what that car was doing in my neighborhood. You know, I got profiled based on my car.

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And so one thing about that is I can still feel that in my gut. You can hear it coming on my voice right now. I still remember that. Yeah, just freakin thirty years ago. And so when somebody bitches about me driving a nice car. Oh, you know what I say kiss my butt because I paid a price to get there, right?

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Yeah. I drove the whoopty I drove like no one else.

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Now I can drive like no one else. And you don't like it. Kiss my bum. Justin, if you're not watching on YouTube, I wish you could see how riled up Ramsay is right now. He has literally gone back to exactly where you are, that moment of being just tired of it. And I'm going to tell you something. I can't wait. You're going to have the same kind of story, buddy. Yeah. And you're going to college to do your debt free scream.

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Yes, you are. And then you're going get you some dadgum decent car show after I've crap around anymore. I don't blame you, man. Oh, I don't blame you. Firearms should be involved in the disbursement of the eighteen hundred.

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I'm just saying.

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Hey Justin, stay focused. But hey, you know what I didn't do. I didn't. Taking pictures of that Cadillac. Take pictures of that eighteen hundred dollar.

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That was going to be a good car that didn't make it a freakin thousand miles. It's part of the story you tell your grandkids and you need the picture. Yeah you do. Before you shoot it, before you blow it up with dynamite, take pictures of it.

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But to remember so you can tell your grandkids here back in the day drove that me and your great grandpa partnership car for eighteen hundred dollars and it didn't make it a freakin thousand miles. You'll be telling it when they're sitting on your knee someday man. When you are winning because you're winning. At that point you built wealth, you become a millionaire. That's where you're going. You've got this. Check out this headline courtesy of Politico, Dotcom emergency relief screw up hits five million student loan borrowers, nearly five million student loan borrowers who got a break on their monthly payments from Congress have been hit with incorrect information on their credit reports.

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That's what happens when you just sit around and trust the government to take care of your money issues. Refinance your student loans today to take advantage of the historically low rates Splash is offering. Go to splash financial dotcom Ramzi. Thanks for joining us, America. My co-host on the Dave Ramsey Show today, Ramsey personality Kris Hogan, the number one best selling author. Adam is with us. Adam's in Santa Barbara. Hi, Adam.

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How are you doing about yourself?

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Better than we deserve, sir.

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How can we help them? So my question is, my girlfriend, she is a nurse. She is making approximately 130 a year, but she is also one hundred and thirty thousand dollars in debt. I just want to see what your advice would be to kind of go ahead and change your mindset, because she's been working hard, you know, ever since high school and college. She never should have a party she or went out because she was always stressed about money.

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And now that she's making all money, now she has the stress with all this debt. So I just want to get her on board and and, you know, be debt free because I want to marry this girl. And once we do, you know, it becomes two months and one person, so. Oh, no. Good.

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Well, and you can if she's on the right track, you can help her out by marrying her and continuing the journey.

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But the thing the thing that I find is and Chris, you can chime in on this is what happens is if people can't see.

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A path to win, then they feel stuck, obviously, the old joke is you need a light at the end of the tunnel.

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That's not an oncoming train and that's called hope.

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Sometimes you hear us here on the air, Chris will do it or I'll do it where the hope sounds like a math problem.

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And you go, oh, I think I can get there.

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But you hadn't really thought about it that way. She's never really thought. Now I make one hundred and thirty thousand. What did she used to make?

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She worked at McDonald's. She worked, you know, retail stores.

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She what did she used to make 25000, 30000, 40000 if that because it was mostly Part-Time.

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OK, so now she's got one hundred thousand dollars extra income. And only one hundred and thirty thousand dollars worth of debt. That sounds to me like under two years, she's debt free if she'll keep living like a broke person and dumping it all on the student loan. See how that math gives you hope.

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Yeah, and that's basically what I tell her. And one of the biggest things right now is she actually has like twenty seven grand in the bank right now just sitting. And I wanted to kind of give at least 20 of those thousand dollars towards the loan so they could, you know, fast track to be debt free. Yeah.

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Adam, let me ask you this, my friend. You've been dating her. How long now? Almost 10 years, 10 years, you've been together a long time. What is your income? I barely started my business and then starting, you know, putting two or three grand a month. OK, let's wait. All right.

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And do you have that? What do you have, any debt? Yes, I have. I have them myself, I'm trying to. How much do you have? Like 10000, but I'm hoping to get through this this year. OK, and here's the reason I'm asking is a lot of times when you're with people like that, you all have been together a long time. She's probably watching what you do, not just what you say. And so you have an opportunity to live this out and let's get serious and go get married, first and foremost.

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But you got to start to combine and start to dream out loud at. She obviously, Dave has some drive because she went from making 25 to 30 to now making 130. When you got a nurse, she went and got her degree, which you don't get just by attending class. You got to be serious. So she has some drive now. It's just a matter of connecting the drive to a vision. And I think that's the missing key piece right now.

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Exactly.

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Barbara says the where there is no vision, the people perish. That's right.

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It's when you can't when you don't believe that you can make it to the other side of the road, you just stand there and get run over by a car.

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You know, when you don't believe you can go, when you sit and get run over by life and you got to go when she did that with nursing.

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You're right. Yeah. Now we got to connect the dots. Exactly right. And you go, here's how this works.

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But I you know, I think maybe you need to change the setting that you're having this discussion. Maybe maybe you guys let me do this.

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I'll tell you what. I'll put you on hold. We'll sign you up for Remzi Plus and put her in there and you in there, you run in separate budgets because you're not married until you're married. Mm hmm.

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But but, you know, and you all talk about how we can go win and change our lives. Change your life.

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What you say they need to change the scene. What do you mean by that?

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I think they're sitting around discussing this in places where they used to party OK, or something like that. And you need to you need to go to a coffee shop you've never gone to before. Got you. Or sit on a different porch than you've ever sat on the back porch goofing off. Go sit on the front porch, change it and go, this is a dream.

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Meet. I'm with you. You need you need a different physical surroundings sometimes to kind of jar your spirit loose.

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And I was going to tell Adam, not only he needs to change his tone, he sounds a little bit like Eeyore. He needs to get some excitement in him, you know, ask some questions, stop talking so much and let her talk. Ask her some open ended questions so she can tell you what she's fearful of and what she's thinking. Because people will tell you if you ask, yeah, there's a lot going on here.

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I'll tell you what.

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We'll help you. You hang on, Keli. I'll sign you up and we'll get you guys and Ramsey.

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Plus, I'll give you something to talk about for sure. We may be stirring up trouble, brother, but we're going to do it.

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We're good at Scotch in Philadelphia. Hi, Scott. How are you? I'm doing well, how are you doing this better than I deserve? How can we help? All right. Well, I've been listening to you guys since I would say about February or March. And in January, I did something very stupid, as I think you would say. I bought a brand new car for to the tune of thirty eight thousand dollars. So I'm calling you to see if you think that this is something that I can afford and hold on to, but something that you think I need to jump right out right away and buy something cheaper.

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You said it's a thirty eight thousand dollar car. Yeah. Brand brand new. So now it's worth thirty two. I got that.

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And you've been listening to us since January. Are now since February. Yes. Yes. So what is the formula. You tell me. So I so I currently make.

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No what's the point. Yeah. Yeah. Go ahead. You're you're on it ok. Yes. I mean so I, the car is about just shy of 50 percent of my annual income which I know it's very steep and I've definitely been a car junkie for a while now for a couple of years. It's the first time. But I make about like to do the math there. I make about eighty thousand dollars a year on average. I work in sales so it varies.

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And I have a good I feel like I have a good savings. I don't own a house I rent. I have about 6000 of the mutual fund and fortunately I have twenty one and a four one K and split between checking brokerage and physical cash. I have about one hundred thousand but I still own seventy five on the car. So you know, I feel like I could pay the car off and still be in a good spot. But do you think you know the car is too expensive for me to own given my income and where I'm at now, or do you think it's something that I can continue to enjoy?

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There's two rules of thumb we use. Is it less than half your annual income? Your answer is fairly. And the other rule of thumb is, can you be debt free other than your home within two years and still keep the car? And the answer is yes. So can you keep the car? You got a really good cash position that helps you with the barely right.

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So the question you need to ask yourself, and this is only one you can answer is you told me and I'm the same way, by the way, but what I heard you say is cars are a problem area for you.

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If you if you reach and pay this call, if you reach and pay this car off and keep it, can you make it the last time you do something stupid with an automobile? If you can't, you need to sell it to prove to yourself that you're not going to stoop it anymore.

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Oh, no.

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I think it's the last dumb car car purchase they make up on in your show. So I thought about it in the first place.

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Now you're the only one who can answer that question. No, you're right. Dave boy. Scott, buddy, you got to make a decision. And here's what the other thing. You got to dig in and get serious and get this thing, this Petmin out of your life.

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I just write a check. He's got 100000. He got seventeen. Oh, yeah. Right. To check. And I keep the car and then do the spiritual discussion between you and yourself. And God says, I'm not done being a junkie. Yeah. This is the Dave Ramsey Show in. I heard a statistic recently that absolutely blew my mind, 43 percent of Americans are not protecting their loved ones with life insurance. This drives me crazy people.

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What are you thinking? Taking care of your family has to be a top priority. That's what term life insurance is all about. Regardless of where you are in the baby steps, you've got to make this a priority. And that's why I talk about Zander Insurance every day. They keep it simple and make sure they find you the best rates out there. Go to Zander Dotcom or call 800 356 42 82. But you have to take the first step.

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That's Zander Dotcom. Chris Hogan, Bram's personality, my co-host today on The Dave Ramsey Show on the debt free stage right here in Ramsey Solutions, real humans are here. Kevin and Carrie are with us, along with the kiddo's Connor, Cameron and Chloe, couple of CS involved in this with one big K. Their Kevin like it.

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Well done. Welcome, guys. Where do you live? We live in Cranbury Township, Pennsylvania, just north of Pittsburgh.

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Oh, cool. Well, welcome all the way to Nashville. Thank you. Good to have you.

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And what how much, Dad, have you paid off?

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We have paid off three hundred and three thousand five hundred dollars in seven years. One month with one hundred and forty three thousand of that in the last nine months. Wow.

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Goodness gracious. What was the income range?

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It started out about to 21 this last year, about 371. It'll be a little bit north of that this year.

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Oh, that's an increase.

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What are you guys do for a living? I'm a domestic engineer.

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I run a sales team for the eastern half of the United States for consumer packaged good company. Oh, I'm the team cheerleader. I got a great team of folks and do a great job selling stuff to retailers around the country. You're apparently a great cheerleader.

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Well done. They don't pay cheerleaders like that if you're not good at it. Well done. Yeah. You're not a petite human being, but you play some football. Back in the day, we didn't have a football team where I grew up. Are you serious? Is I coached up in Pennsylvania and I'm going to tell you some large human beings up there. Well, yes, some good people, but hard working, amazing number of Hall of Fame people out there.

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Yes. Jim Kelly, Joe Namath, Montana, Montana, Mike Ditka, all of so Tony Dorsett. So tell me, what motivated you guys to get serious about attacking this debt?

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Well, you know, it's it's a 25 year success story. And it's funny because, you know, when I when I was I've had this conversation with you guys probably about 2000 times over the last seven years, normally on a treadmill sometime in the morning. And when we knew we were getting close to time because we paid off our house, you know, and we we knew we were getting close to time. And I sat down, I started writing down kind of what I was thinking because I knew we had just a segment.

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There was a certain amount of time. There was so much to tell you. And when I finally came up for air, it was about 63000 words, 16 chapters afforded an afterword in this concept in this title called Working for Rachel. And what it was, was it's the biblical Rachel and Jacob story. Right, because Jacob had to work for Rachel for four, seven years. So we thought working for Leah was kind of like the consumer debt part and then working for Rachel was paying off our home.

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Right. Because when he said and that was always about the process for verse 20, it says and Jacob served for Rachel for seven years, but it seemed like but a day because of his love for her.

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And all of a sudden it went from a process to a concept. Right. It went to kind of this whole idea of we're now working for Rachel.

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Right. This baby, step seven, this is because we've always felt like we're your patient zero. Right. We're a case study over everyday millionaires book. Right? I mean, it was like, you know, I look back and I say, we did this and we said it's it's a memoir for our grandkids and their grandkids. It's a prayer journal. What we went back and said, this is where God showed up here and here and here just at the right time.

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And somewhere along the way, there's inspiration and motivation because we are extraordinarily ordinary. I mean, I was a two point nine three student in college. I was on academic probation twice. I was on disciplinary probation once. You know, I couldn't spell KPG if you spotted B, the C and the G coming out of school. But, you know, I punched above my weight when I got married. I married to Proverbs 31 woman, you know, who whose worth is far more than rubies.

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And her. I've had no lack of gain. And, you know, we've been great partners.

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But there's, what seven years ago is when you started the three or four. Yeah. You knocked out what started that project.

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Sure. Sure. You know, we we bought this house back in 2003 and it was like sixty percent debt to income. I mean, we stretched into this house. I mean, you know, because when you're when you're building this house, you know, you can justify anything. I mean, because there's always cheaper to do it up front versus after when you're in sales, you can always make more money.

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Oh, yeah. Yeah, we can out earn much stupidity.

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We closed the house in December of 2003 and a five year arm and a three point seventy five percent rate.

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Oh, and and five years from December 2003. It was December of 2008. Yeah, right. So I mean, we were staring square in the face of a housing crash and we just got lucky in the sense that Pittsburgh was one of two markets that didn't go down, you know, during that time. And we were able to do it and spent three or four years kind of figuring out, you know, and refinancing and feeling better about stabilization schedule.

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I met you in 2011. We were out in Maui for a fifteenth wedding anniversary. And all of a sudden this guilt and shame came over me because I'd put the family so much risk. And it works only when it works. And it worked for us. And we were in a good spot at that point. But, you know, it was like I felt like I'd walk through a landmine in. Hadn't tripped any of the bombs now, but I look back and said, I'm never going to do that again and I just got really lucky.

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I got both my legs. Absolutely.

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So we got to 2013. We refinance for the final time in February of that year at you know, we did a 15 year, two point seventy five or 300, 3500 dollars. And it was not the 15 years didn't matter. The two point seventy five didn't matter. What mattered was the 300 and 3500 dollars. And I wanted to pay it off in two years. But you say do baby step four or five and six at the same time.

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Right. So, I mean, so we put back 250000 for college during that time, you know, save three or four hundred thousand dollars for retirement during that time. And just slowly but surely, you know, knocked it off. And then when a bonus would get bigger than we thought or when stock options would come, we just take a big slug against it.

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You know, we finally got to where we needed to be and, you know, carry at what point in this journey did you finally look at him and go, I've been telling you this?

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Well, you know, it's a scary thing to think like where and the sacrifices that we were going to have to make to accomplish this. But he's never steered me wrong. So and he's always been good financially. So I just had to trust. Oh, you didn't you didn't step up and go. I've been telling you this.

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No, OK. All right. Because I'm kind of watching her and I'm thinking she's going and she already knew all this. Yeah. Yeah, absolutely.

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I tell you what's interesting, though, is we paid the house off on March the 12th. I got a bonus. I got a bonus on March the 9th. And I talk to my financial advisor and I said it's within four hundred dollars that the balance of the house. And on March 11th, the world started falling apart. March 12th, I did an electronic transfer to the bank and it was like, God put us in the ark and shut the door.

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Yep.

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And then the rain came in and we just exhaled.

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And we have had, you know, just economic community over these last, you know, four or five months. And it has been really comforting from, you know, where it could have been. And it's we've just breathed a sigh of relief through it all.

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That's about as up to the moment. Absolutely. Shut the door.

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And that rain does come and you're 100 percent debt free. And three kiddos and they're approaching college age. You're looking at them at rapid pace and they're ready.

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This one this one here is a senior. You know, I look back as there's like four or five moments. But probably the most important thing we ever did was back when he was born back for 1999. I did my first budget. I still carry I still have it with me. Right. We did our first budget like three hours on it. And because I knew she wanted to stay home and at the time I was making like forty grand, she was making 32, you know, she was on her way up in her career.

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But I knew she wanted to stay home and we figured it out and I didn't know how we were going to add a mouth and take away the income. But we did the math. We got it figured out. God bless that decision, because we made 72 grand together in 1998, 1999. I got promoted twice that year, got up to 69. It was in our rearview mirror. But she made some really smart decisions in college. You know, she commuted.

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She didn't have any student loans because even if we could have figured that out, I don't think that she would have stayed home had she had that student debt just out of the guilt that was there.

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Yeah. And because that happened, I was able to go do what I do, get on airplanes and go sell stuff. She had the house, you know, taken care of and, you know, those decisions just stacked upon themselves. And we just ended up at a real good place, you know. So what's this house worth? Well, the last appraisal I had was in 2012 570. What do you think it's worth? Seventy seven fifty.

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Yeah. Yeah, it's way to go. Yeah, absolutely. Well done.

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Well we got a copy of Christmas book. You're already there, but you get to read about yourself every day. Millionaires and debt free house and everything. What a wonderful story you guys. Rachel Leah thing. I'll remember that one. That was very, very good.

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All right. Kevin and Cory Conner, Cameron and Chloe, 340000 paid off in seven years.

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Make it 221 to 371 debt free house and everything counted down.

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Let's hear a debt free scream three to one where debt free.

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Yeah. They will never go back. No, they're not going. No chance. Well done. Great job. You all love it. This is the Dave Ramsey Show. Our Scripture of the Day verse Timothy for 15, practice these things, immerse yourself in them so that all may see your progress. Benjamin Franklin said without continual growth and progress, such words as improvement, achievement and success have no meaning continual growth and progress.

[00:30:20]

Well, folks, investing is particularly weird out there when we have things going on like covid and businesses that are messed up by things going on like covid.

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And some people get freaking out. Let's get real. Sometimes you jump out of your retirement at exactly the wrong time. You stop investing at exactly the wrong time. Don't do that.

[00:30:42]

You need to have a pro in your corner, someone that teaches you so that you make your own decisions because you're dealing with someone with the heart of a teacher. If you're ready to invest or you don't have a good pro in your corner, we all use.

[00:30:57]

Personally, I do. Chris Hogan does. We all personally use smart VESTER pros.

[00:31:03]

These are people in the business of investing in the business of advising, and they have the heart of a teacher.

[00:31:10]

They can help you do your mutual fund, help you do a roll over, help you get your kid's college started, help you start your Roth IRA.

[00:31:18]

If you want to do that, start even something for your small business. Whatever it is with your investing side of things, they can do it. If you want to find the smart investor pro in your area, that is who we recommend you click.

[00:31:30]

Smart investor Dave Ramsey Dotcom. He'll drop down. You fill out a little formula, drop down a list of all the smart VESTER pros in your area, and then you pick the one that is best suited for you and that's how it all works.

[00:31:44]

David is in Martin, Tennessee. Hi, David. Welcome to The Dave Ramsey Show.

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How are you, gentlemen? How are you doing? Great. How can we help? OK, I'm 19 years old.

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I'm starting my second year college and I'm getting. Three thousand six hundred dollars back from the school, from excessed scholarships, and I'm on baby step three and I'm not sure I actually finish this baby step three for me and I'm not sure what to do with the extra money from that. And my girlfriend's wanting to start a small business on the Internet, and I'm kind of with on that making t shirts and candles. And I'm not I'm not sure if I should do that, invest it or just keep stockpiling money.

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I would pile up money and make sure you graduate from school, you're just starting. Don't touch money, leave it in a big pile. I don't care if you got 36000 dollars, you know. What are you studying, David?

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I'm studying chemistry, and that's my bachelor's degree, but I'm going to do it.

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OK, so you got a lot of knowledge ahead of you. You know, you do, buddy, that 3000 dollars won't even spit at, you know.

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So just pile up money, pile up money, any money you can get your hands on other than loans, pile up money and listen moving forward, David, you know, I appreciate I love business more than anyone else. We teach and help people open and run and improve businesses. This is not the time for you to try to start anything with the girlfriend. So lots of this money is now saved. Let her know that that's the decision you're making.

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So there's no more discussion with it because, you know, I can see her and others have an ideas for you in this money that you got to plan for this. We're going to stockpile it and you're going to keep growing you and going to school.

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You know, the 29 year old, you doesn't want to be telling stories to his friends about the time that he had three thousand dollars and gave it to his girlfriend for a candle. That's not that's not a story you want.

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You made that story fast. You connect that really quickly. That's you know. I know. Or you may be telling the story where she goes and makes twenty dollars million and you wish you had. But I don't think that'll be the one. Yeah, no, no, I wouldn't do that.

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I would just pile up the cash. You are as a surgeon, as a chemistry major, you are the best investment you can make.

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Matter of fact it's the best investment almost anybody can make. That's her investing in education that is going to pay off.

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So just make sure the money's there for that is pile up cash, pile up cash, pile up cash.

[00:34:18]

This is all about you completing your degree. Caesars in Chicago. Hi, Cesar. How are you?

[00:34:25]

Hey, how are you doing day. Great. How can we help. OK, let them. Ever since I first time for the first time listener I discovered last summer started since you didn't think anything so far about a month ago. I'm roughly a hundred and thirty thousand dollars in debt which is ninety four thousand dollars and also the IRS. I'm trying to do what I can to to figure out what's the best way to tackle this. Most of most of the other stuff is car or car loans and credit card debt.

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I just went to CarMax this weekend and saw a vehicle which I had some positive equity. I was sixty five hundred. I don't know what to do with this money at this point. What in the world, how do you owe the IRS ninety four thousand? It's a mess, I mean, in 2015 and 2016. We have a business, you know, I I started a business with my wife. I pretty much try to manage the business myself to try to do everything myself.

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And I kind of screwed things up. And it didn't help that I had a bad accountant. I contacted the IRS and this seems to be an issue if we have to file a 10, 40 tax form to cut our amount of taxes. You know, while this is a process, I mean, I still have to start making some kind of payment because I'm getting some letters on the mail as far as. OK, wait, wait, stop, stop, stop, stop.

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So you're saying that the.

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Returns were filed improperly and you may not actually owe this money when you file amended returns. Exactly. OK, but you have you have you have some money, you said you had six thousand dollars from selling your car. Yes, 60, 65 to go, and I am currently in baby steps, so I thought another stop, just stop, you're going to spend some money right now on a tax attorney or a tax professional that is a stud of some kind.

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And if it costs you 6000 dollars, it won't, but it will cost you 2000 dollars. This is job one right now. Yeah. Is you can you can take your 130000 and wipe out 94 or a big portion of 94 with some simple proper filing. You don't do that yourself. That's how you got here.

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You go get a tax pro check Dave Ramsey dot com and click on our tax helps.

[00:36:55]

If there's not one in your area, start shopping around. Talk to some business guys that are that are competent business people in your area. Ask them for advice on who a good tax attorney or a tax pro is and let them dig in. I don't you don't need to do anything.

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You don't worry about baby steps. No, this is job one. IRS. Yes, job one.

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That's what you're doing. And easier make the area focus. Don't come up with excuses. Pick up the phone call. Set up a time to go sit down, gather up, find out all the documents you're going to need because you're going to have to do legwork here. But trust me if worth it, because it's dealing with the IRS.

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You know, you're a good tax professional. I can tell you if you need to get on an installment plan and what level you need to do to get the barking dogs off your heel while you get this stuff filed. But dude, you don't wait thirty seconds. You get this stuff filed. Now, this is an overdue term paper and you've you know, this is killing you. Yeah. And these people have unlimited freaking power. It is unbelievable what they can do to your life if they choose to do so.

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I really, really, really want them to go away. Yes. I want you to get the paperwork done and you don't have anything that's more important in your life for the next two weeks than get all of this filed as soon as possible.

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I don't don't drag it out three months. Don't drag it out two months.

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File the stuff, get with somebody, get the work done. Yeah. You stay, you know, get you a cup of coffee and work into the work into the wee hours of the morning, get this done, whatever they to do.

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Because here's the reality. Some tweaking and the proper filings, again, has the ability to wipe some of this out. This is a this is a huge opportunity. Sounds like a good portion of it, completely wiped out. It really like they've impugned it on him because he didn't do proper filing and they guessed. That's right. And the IRS never guesses lo lo.

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It's a rule of theirs. It's written somewhere in a book.

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I'm sure I've dealt with them. Oh, God, no interest in the penalties on this stuff. And it all goes away with properly amended filing or a large portion of it does. Yeah. Then get that's the stuff you should have been working on all these years ago.

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Yes. And then once that's out of the way, you're down to just forty thousand hours worth of debt. Now you go to your desk.

[00:39:14]

That's right, Chris. Okay. Good work today. Thank you, sir. It's a pleasure to be with you this hour. The Dave Ramsey Show on the books, thanks to James Childs, our producer, Kelly Daniel, 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.

[00:39:36]

Jesus. This is James Childs, producer of The Dave Ramsey Show. You can listen to Dave, Rachel Cruise, Chris Hogan or 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 your friends, head to the App Store and download the Ramsey network app.

[00:40:03]

If you're looking for fun and practical ways to save money in your everyday life, you need to check out The Rachel Cruise Show, a podcast from money expert and my daughter, Rachel Cruze. Hey, guys, it's Rachel Cruz. And I'm so excited to tell you about my podcast. A lot of people are living paycheck to paycheck. They're in debt. They don't even know where to begin. But they have this need this want to get in control of their money.

[00:40:25]

And if that's you, you have come to the right spot. So in each episode, you get a ton of inspiration and practical advice. If not, subscribe to the Rachel Corrie show podcast. Make sure you do it today.

[00:40:37]

Hear more from the Ramsey network, including the Rachel Cruz show wherever you listen to podcasts.

[00:40:43]

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