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[00:00:26]

Live from the headquarters of Ramsey Solutions, broadcasting from the car rental studios. It's the Dave Ramsey Show where dad is dumb. Cash is king and a paid off home mortgage. Has taken the place of the BMW as the status symbol of choice. I'm Dave Ramsey, your host, Dr. John Boloney Ramsey personality is my co-host on the air today. Open phones, a triple eight eight two five five two two five.

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

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Shelby is in Dallas, Texas. Hi, Shelby. Welcome to the show. How can we help? Hi, Dave. Hey, recontact Dr. John, that's what I'm talking about. I like it, Shelby. Yeah, it up. All right. So my husband and I were on baby steps for five and six, and we're considering immediately paying off our mortgage. Could have a hundred. Yeah, we have one hundred forty thousand remaining on the balance and we would be pulling the money from roughly two hundred eighty thousand of non retirement investments.

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Why haven't you done it already? Well, OK, well, I guess our thing was we think that we will make more money on the investments and compound interest than what we would save by paying off the mortgage. But, you know, so in addition, my husband's job just announced layoffs last week. So that makes things really fun and exciting. So my head says to keep the investments, but my heart says to pay it off.

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OK, well, you are accurately describing that because what you're leaving out of your formula is risk and your head does math and your heart is where risk is measured. Right.

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And so when you measure risk, you will find that you will actually make more money as a result of having a paid for house for multiple reasons, the sense of peace, the sense of well-being causes you to make different decisions with your money in other areas and with your career because you don't have to put up with crap if you have a paid for house and you have a tendency to prosper in your career field as a result.

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And see, that's not measurable in your formula that you used where you thought you would make more on compound interest if you made more on compound interest than you should borrow two million dollars on your house and invest it on the stock market. But when I say that, that takes your breath away a little bit because that makes you realize there's risk. That makes sense, right? Yeah. Yes. But last point is this couple other points right quick. And there's two other one is when we did the study for Christmas book, Everyday Millionaires, one of the key data points we found was that not all of them, but the typical millionaire paid off their home was one of the key components of their first one to five million dollars in net worth.

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Was it paid for home? We almost never I won't say never, but almost never found a millionaire with a mortgage. And if we did, they were in the process of getting it paid off very quickly, we might out of 10000. I can't say we didn't, but it might have been two or something. Who said they built wealth by using borrowing on their home to become wealthy? That is not something we ever hear.

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Among millionaires, they don't say, oh, I borrowed money and invested it and made the spread by investing in mutual funds and that made me a millionaire. Never said anyone.

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OK, and the last point is, says pay off your house.

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And if you really hate being debt free, you can go get your mortgage.

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Very true. All right. Well paid off today then. Have at it, I think shows that that's a that's a that phone call was worth it's worth it.

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I mean, she already knew what she's going to do. I know she did.

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Is that old Taylor Dayne songs? Listen to your heart. I love it. Man, is that not Taylor Dayne now. All right. Whoever it was, Roxette Rock said, All right, we're getting help out of the booth here with our karaoke.

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Great. All right. We need to move along fast. Mavis's in Portland, Oregon. Hey, Mavis, what's up?

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Oh, hi, Dave. Such an honor to talk to you. You too. How can we help? Yes, I have one simple question. We recently purchased term life insurance through vendors and but a friend of mine is in the insurance business now, and she highly recommends to get a, you know, a whole life insurance versus term life. I don't you don't never recommend a full life. But wait a minute.

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My whole life life insurance agent said you should get whole life. I'm shocked.

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Well, no, she just she works for a different insurance company. I told her, I said, you know, I just got her life with vendors through Dave. And then she's like, you know, I thought, let me tell you all this thing about whole life. It just sounded so good.

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Drug dealers want you to use drugs, too. They do. Yeah.

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And a lot of our users, too.

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They're making it sound so good. Yeah. So good. Yes. Yeah.

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So OK. What kind of people can you obviously know. We stand the whole life insurance sucks. Now how can we help you.

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You're not going to convince your friend because she sells it.

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Right, I guess my question is, why don't you recommend the like what's the that's a good question for a whole life. That's an excellent question.

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OK, my whole life life insurance is somewhere in the neighborhood of 20 times more expensive for the same amount of coverage. So in other words, if we take one hundred thousand dollar policy and our 280000 our policy and it was five dollars a month for term, it would be a hundred dollars a month for whole life.

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OK, OK, so now we have established statistically, based on your age, with the probability of your death at your age, what it costs to cover your life should you die.

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We know five dollars will do that. So why do they charge a hundred? Well, the other 95 dollars goes into a savings program inside the policy called cash value. She probably mentioned that to you.

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It builds up cash value selling point and they say it builds up equity like owning a house where a term is renting. Well, it's not at all. That's a mixed metaphor and it's absolutely a lie. OK, so here's what happens. You got an extra ninety five dollars. You're being charged. That's going into ins to the inside of the policy with cash value.

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Now, here's how cash value works.

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Get in a whole life policy out and look at it. The first three years your cash value build up is zero.

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OK, so what happened to your ninety five dollars, it went to a month, by the way, not a year. What are your 95 dollars go to? It went to commissions and extra profits for them. After three years, it accrues nationally at an average of one point two percent. Mm hmm.

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Then when you finally get past those three years and you finally get past the idea that the right of return sucks and it finally builds up some money, now you're 250000 our policy as a twenty thousand dollars cash value in it. You have a savings program inside.

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There you die. The insurance company pays the face value of 250000 dollars. What happened to your twenty thousand dollars you paid extra for? They keep it. So you have a savings program at a bank the first three years. They keep all your money. After that, they pay you one percent and when you die, they keep your money. That's whole life life insurance.

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That sucks. It is the payday lender of the middle class. Hmm. That's how all the towers in the skylines of every city are life insurance companies and banks.

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They didn't make that money themselves. Santa Claus didn't build those. You built them. America, this is the Dave Ramsey Show. You know, what angers me is folks are going through some really hard times, identity thieves are using every opportunity to prey on us. The scams are endless. You need to be prepared. Zanders I.D. theft protection is the only plan I have ever recommended and I've looked at them all. They just do everything in a smarter, more affordable way.

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When people avoid hard stuff like making a will, it actually causes more anxiety. You got to deal with the important stuff, like making a will head on. And if you don't, you're going to have a problem because you know, you're not going to live forever. You're not going to be actually only problems behind what's going to happen.

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So think what would happen if you died without a will, your family would be in and out of probate court paying big legal fees. The state will decide what happens to your kids.

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You don't decide you need a will. Making a will also let you be generous beyond your family. More and more of our listeners are creating their wills and giving like no one else.

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From ten to 20 million dollars a month in estate, gifts are going to churches and charities and ministries in their wills. Just from listening to the show, it's pretty cool. So we made planning and giving both super easy and super simple. Start with the free will preparation checklist. It covers the seven most important things you need to think about, plus all the stuff most people forget. Get the check list.

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It's free text will to 33 789 text will to 33 seven 89.

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Dr. John Delany is answering your questions today. If you don't get through today to talk to him, you can email John at ask John at Ramsey Solutions Dotcom, ask John at Ramsey Solutions dot com and also be sure and check out his latest videos on YouTube, divorce coronavirus and the Titanic.

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That sounds like I don't even know why there's a I have a sinking feeling we'll play it.

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Has it been nominated for an Oscar yet? But I'm just waiting for the call. OK, but often do.

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I said, who's Oscar? He's also his latest article is blowing up. I have read this. It's absolutely incredible. And Dave Ramsey Dotcom, how to deal with anxiety. All right.

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Let's go to Jeff and Panama City. Hey, Jeff, welcome to The Dave Ramsey Show.

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How can we help? Thanks for taking my call, guys. Sure. I had the last two years been pretty a whirlwind for me and from me and my wife have gathered up about twenty five thousand dollars in credit card debt. And I was wondering, is it ever a good idea to take out a loan on a 401k just to pay it off?

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Nope. Hmm. Two reasons, one, you unplug a good investment and pay yourself a lousy interest rate. And so instead of making 10 to 15 percent on some good mutual funds, you're paying yourself back five or six. Reason number two is when you leave your company and you will leave your company when you die, when you get a better job or when they fire, you, lay you off whatever you will of your company when you leave your company.

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A 401k loan is considered due in full within 60 days. If you do not pay it in full within 60 days, you get penalized and charged taxes, a 10 percent penalty plus your tax rate.

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And it's the last time you need a loan coming due suddenly when you're leaving a company. And so it's a nightmare.

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It sounds like it's a good idea on the surface when you just go, oh, instead of 18 percent on the credit card, I'm getting this and and I'm paying myself interest anyway instead of paying them interest. And that's how people think about it. And they get they get themselves really into a sort of serious pinch. What's your income, Jeff?

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On an average year, I make about sixty five to 70 times that your household income or just you? That's just me and my wife makes another 18 to 20.

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OK, so you're like a ninety thousand dollar household income and you have twenty three thousand dollars in credit card debt. 21, only five, what other debt do you have, not counting your house? I have my cars. I think I owe 15000 left on that.

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OK. All right.

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So forty thousand dollars makes you debt free and you make 90 a year. Correct. OK, so what if we said 20 a year for two years that be kind of like you're not really pushing hard on the gas at all?

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I mean, instead of making instead of, you know, living on nine, 11, 17, you're debt free in two years. So I think you ought to do it faster.

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Oh, should I lower my 401k contribution to stop them? Hmm. I stopped them because I at twenty five percent right now. Doesn't matter.

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Stop it. Right, and just temporarily, because for the next year and a half, I want you doing nothing but paying these debts off, listing them smallest to largest and attacking them in that order. And you're not allowed to have a life during that year and a half because all you're doing is getting out of debt. You've got to clean up this mess you made. No vacations, no eating out, you are going to be on beans and rice, rice and beans, put the cat on Craigslist, the dog on eBay.

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We've been doing that since the baby was born anyway.

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All right. Well, it's time to get somewhere with it. Time to get little traction. I tell you what. Hang on. I'll have Kelly pick up. We'll put you in Ramsey Plus, which puts you into financial peace university, hook you up with the every dollar budgeting app. All the ask a coach apps are in there. Everything's in there to help you. And we'll put you in there for a year as our gift. You had a bad year last year.

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I want to help you. Have a good year in the coming 12. Hang on. We'll take care of your brother. But you got do this stuff, OK? You've got to do it.

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Preston, I'm sorry. Keisha is with us in Richmond, Virginia.

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Hi, Keisha. How are you? I'm well. How are you? Good. How can we help? Well, this is a kind of Dr. Jones, Ali, but I have bipolar disorder, among some other things, and through the years, I've made a lot of bad decisions and mistakes when it comes to money. Probably about five or six years ago, I had a really bad episode and I got myself into a lot of debt and I'm still digging out of it and.

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Basically, I know the things I should be doing I need to be doing to get out of the debt, I still have problems with the with my bipolar where I get impulsive. So that makes it hard sometimes. But are you taking.

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Are you taking your medication? I not on anything at the moment, I'm kind of coming off of something to try something new.

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OK, but you're working you're working with the psychiatrist right now. Yeah, I have to find a new one because my insurance just said they're not going to cover anymore. So.

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So you've got a bipolar one diagnosis and they're saying they're not going to cover it anymore.

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They're not going to cover the people. Always saying, OK, I'll have somebody new. So that's number one. Number two, do you have somebody in your life that helps you be accountable?

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My boyfriend helped and my mother, but I am single. I live alone.

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And so I'm asking you I'm asking you like a boyfriend and a mom. Those are often not great. They're good cheerleaders and they're good neighbors. They're not great accountability partners. Do you have somebody that you could trust that would hold your debit card for you and just let you have cash? Here's what I'm getting at. You've got to set up some boundaries in your life, some barriers that make it very challenging for you when you get in a manic state to do something that you don't have to live with for two, three, five, six, seven years.

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That's what I'm getting, what I'm wanting to know, what I need to do.

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So you need to find somebody, probably not a boyfriend. Are you in a good church? Yeah, and not at the moment.

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OK, so, yeah, you've got to find whether it's a good church and a pastor, whether it is a a bipolar group in your community that's got somebody that y'all can meet with regularly.

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Maybe it is your mom, but somebody in your life that you can sit down and say, I've got these, I lean this way when I'm having I'm going, I'm in a manic state and I lean this way when I'm in a super low state and I need to set up some guardrails for myself.

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But all of this starts quite honestly, Keisha, you got to you've got to take your medication. And folks with bipolar one are notorious for getting in there and feeling better, feeling a little bit leveled out, and then they quit. They think everything's all good. And then they they they stop right. And they go right back to where they were. So that's my big recommendation to you, is get with a psychiatrist ASAP, someone that you trust not that's just going to dope you up and say, all right, go on your on your way.

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Who's going to talk to you, learn about you, and then you going to have to get some accountability in your community that's going to help you when about to get off the rails, Keisha, your finances will heal only to the extent you do. That's right. This is the Dave Ramsey Show. At Takeover's, we believe a great pair of cowboy boots won't just make you look taller, they'll give you the confidence boost that'll make you feel taller to attack us.

[00:19:27]

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Dr. John Maloney Ramsey personality is my co-host today here on the Dave Ramsey Show, Open phones at triple eight eight two five five two to five. Preston is in Dallas, Texas. Hi, Preston. How are you?

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Day they he had it going great. How can we help? So I just want to thank you first for your teaching me, my wife got on board a couple of years ago. We've done some stupid hats and cars, a couple of new cars plowed through. Those got paid off. And we just we just moved on. We bought a house around up to four or five and six of our 20 percent down everything say. So I just want to say thank you for everything you're doing for everybody.

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Way to go, dude. Proud of you. Thanks.

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And so today is more of a career question I had. So I guess short and to the point, I, I kind of have a feeling that I'm not under compensated at work and was kind of curious what if it was really, really wise, you know, to ask for a raise during these especially during these hard coronavirus times.

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Is your company struggling? So we have back in with a larger company, large publicly traded company, but back in March or so, we did have some furloughs and let some we're kind of in the service industry. So we did let some drivers and things go due to profitability and revenues. But what we have begun actually bringing some of those back and hiring them.

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So I think what gives you the feeling you're under compensated?

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I've been there for a couple of years now and I've taken on a sales role and taken on quite a bit more responsibility, brought on new accounts. And I've been hitting pretty much all my gold except for this last quarter. And no excuses. But the coronavirus was off a little bit there. But for the most part, I feel like I've been doing a good job, just haven't seen much in any compensation increase in the last couple of years.

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That's a different question that Dave asked you. He asked you, how do you know you're under compensated?

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Which to me tell me if I'm wrong, is what are people in your area doing the same level of work you're doing at the same competency you are? What are they making? Versus I shook hands with the company and said, I'm going to come to work you for this. I'm going to put in my all I'm going to be excellent at it. And you're doing all those things and they're doing what they said they were going to do, paying they're paying you what they said they're going to be.

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Yeah.

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Yeah, definitely. I would say just in some research and things, I believe that people in my area and the same same position that I am in are probably 10 to 15 percent higher and a little bit more about the role. I kind of came in as more of an inside sales role, and that's kind of evolved over the last couple of years. So it's OK, here's the way you roll.

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Here's the way you answer the question.

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How do I ask for a raise? If you switch places with your leader, who's going to make the compensation decision?

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What would you want a young go getter like Preston to do if he wanted to race? Why would you give Preston a raise? I'll give you a hint. You wouldn't give him a raise because he breathes air in and out.

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No, not at all.

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He thinks he's been working hard for a few years and he should probably get some more.

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No, not at all. I'd say definitely around those goals. Right. I think you want to make your boss so hitting your goals, revenue goals, making the company more money is probably one factor in it. And then to think what you guys are just saying. Right. What what can I replace you for?

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There's someone else exactly is the same or what does the cost to fill your role or your position and what you're going to say to two examples that happened to me personally as a as a leader here, for example, number one is guy walks into my office and says, hey, I pulled up a bunch of comp issues off of Google and off a monster. And I might be wrong, but here's what I found. I found this and this and this and this.

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And those are all 10000 dollars more than I'm making. And if unless I did something wrong on the Internet in looking doing a compensation research here, it appears looking at these data points, not feelings, these data points that I'm off about 10k on my comp. Would you look at this with me and consider raising me if it's real? That's and he got the race, by the way. OK, second, the second conversation was Guy walks into my office and says, you know, a guy like me that has I've got 14 degrees, I got more degrees than a thermometer.

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A guy like me working in another company makes makes twice what I make here. And I said, well, honey, I Felecia, I said, the problem is this is a small business and your race is effective when you are.

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And so the number of degrees you have is not does not make you valuable, what you do, what you kill and drag in here that we share is what is what makes you valuable from an economic perspective. As a human being, I value you. But but from an economic perspective.

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And so, by the way, that guy doesn't work here anymore. And because he didn't like my answer, his right, you know, so you go in and just do what you said, you said I've been effective, I feel like I'm doing this. And I pulled some research. And here's what it's showing. What do you think?

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Did I do something wrong or do you have other information that I don't have that says that this position because I feel, you know, based on this, it looks like I might be due for some compensation upgrades.

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What do you think about that? And that's not belligerent.

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It's not saying slapping your fist on the table and saying, I looked this up and you're underpaying me, you toxic jerks. It's not any of that. It's going I'm just looking at this and going guys that do what I do seem to be making a lot more than I'm making. Am I doing something wrong? What did I see here?

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And if you just switch shoes when you're thinking about these things and think about the from the leaders perspective, what would you want a go getter like Preston to do?

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You don't want to lose a president. You want to keep arm on the team. What would you want them to do? I would want them to come in with more than I've been here breathing air for two years.

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And so I need money.

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Right. There's a humility to have done my research. I've done the numbers. Here's my performance. I love that approach, Dave. I love the humility of it. I also mean, I've spent years working with young professionals.

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That was their first or their second job. And there is this expectation, this, of course, I'm generalizing here, but this idea that. We shook hands. I've done my job for a year or two, and what do you do for me now? And there's this this basic expectation that you're just going to keep keep picking me up, picking me up, picking me up. And I always want to remind folks, when you shake hands with your employer and say, I'm going to come give it my all, and they say, I'm going to give you this, the only time they screw you is if they give you less than that amount of money, anything other than that.

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We agreed as well. We agreed on and be good with that until you can provide data points to the contrary. Yeah, I you know, I do run into that.

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That's kind of an entitlement mentality. But I don't think personal suffering is not at all not even a who's got a different he's got a different take on it. But but I think you're right.

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There's this thing, it's kind of like a like a union seniority thing or something like, you know, I've been here breathing air for 20 years. I've won years experience 20 times. Right. And so I'm worth more. No, you're not right.

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You're still the same stinking thing you're doing. What do you think about his question? Just dig into the global pandemic. Is there a is there a moment when I think about this back at my house?

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Right. I can look at my wife and she's exhausted. She's been packing boxes all day and helping to move.

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And that may not be the time to say, I don't like the way you're parked in the car in the driveway. Could you scoot over two feet? Right. I know there's a season or there's a moment to ask that. That's not a good idea right now. Is that is that ever come into play in business or is business just business is business?

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Well, I mean, it's everything's personal. And so the question is, you know, if you're asking a leader who is barely making their numbers because of covid for more money, you know, it's just seems insensitive. It's not it's not only insensitive is impractical. Right. You know, we don't make hardly any money. We're struggling to stay open. And you're coming here. Want to race, right. That's just tone deaf. Right. You know, but on the other hand, there are companies that have done OK.

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Ramsay's done OK. We've struggled during this time and we had some business units, just live events. All that revenue just disappeared. It's gone virtually anyway, except for virtually and no pun intended.

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Well, and but then other areas have gone way up. And so we've ended up at about what we thought we were going to be last year. So of our budget projections are about on. And so, you know, internally we've started giving raises again and start hiring again.

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And so in that environment, even with if somebody came up to one of us and said, I think, you know, would you look at this with me? I think I'm off on my comp, but and you go, oh, well, now you're you know, you're a junior. You're not a senior. Oh, OK. OK. All right. Well, what have I got to do to be a senior now? How can you really question.

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Love it. This is the Dave Ramsey Show. Our scripture, the day Romans 12 to when sign the total money makeover, but with do not be conformed to this world, but be transformed by the renewal of your mind, that by testing you may discern what is the will of God, what is good and acceptable and perfect. Margaret Mead said never doubt that a small group of thoughtful, committed people can change the world. Indeed, it is the only thing that ever has.

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Dr. John Deloney, Ramsha personality, is my co-host this hour, this day here on The Dave Ramsey Show, if you'd like to talk to him.

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We now have a new John Deloney phone number.

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Yeah, we're working on the radio show, and it is a lot of fun. Now, this radio show thing might turn out for you. That's the rumor. You've done all right with yourself. Yeah.

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So for for write the number down if you want to talk to John eight four four six nine three 32, 91. Leave a message and we'll set up a time. Kelly and the production team will set up a time for you to get through and talk to John. So if you want to talk to Dr. John Boloney, eight four four six nine three 32, 91.

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Chelsea is in Minneapolis, hi, Chelsea, welcome to The Dave Ramsey Show. Hi, how are you? Better than I deserve. What's up? OK, I have got a question for you guys about my kids daycare. I currently work from home and I have for the last year or so and five kids has gone to daycare the entire time. I work part time around 20 to 24 hours a week usually, and my kids currently go to daycare.

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And so I'm wondering if I should pull them like I want to because I want them to be home with me more. And then there's the cost savings, too. But I'm wondering if that's making a crazy decision.

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Can you do your job with them around? No, no, I can't. So that's that's where it gets really tough as I would have to work, like, either in the early mornings or in the evenings or late evening. What do you do? I can't. I'm a medical coder.

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OK, so you can code one. How old are the kids? They're one in three oh, how many? Well, so I really I just have to two kids, a one year old and a three year old.

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So how long do they sleep in their naps? The three year old does not nap. The one year old does take like a two hour nap, usually every day. Hmm. So I don't want to cut into too much family time, but I do want to bring him home.

[00:32:48]

I just want because our goal eventually is for me to be a stay at home mom. That's like what we've always kind of wanted to do, but we just have quite a bit of debt right now. We're working on the cards right now. So one is just because I want that time with them, like I want to be the one that gets them up in the mornings. And the daycare days are really stressful. When I wake up and it's like, go, go, go, you know, rush out the door.

[00:33:14]

What about your husband? Is he in or does he help?

[00:33:19]

Yes, he he definitely helped and he told me that he works a lot more than me, so he is not able to help in the mornings or the afternoons. He does. He can't do drop offs or pickups or anything.

[00:33:30]

You're asking a guy. And so I am not a part time working mom and I am not wrestling with that communion with my two little kids. But if I were you, I would sit down with your husband and see if you could come up with a plan. And I would take him out on Monday and figure out ways that he can help support in the evenings or that he can help support Loring's.

[00:33:52]

My wife gets up before probably before the Lord himself gets up in the morning and see if she's a writer. And so she gets up early, early and writes, that's the only time she's got. And then she writes again in the evenings and I help with bedtime sometimes. So we work together as a partnership. But yeah, you put that cash in back in the pocket, but also more importantly, you'd be plugged in with your kids and the R.O. on that is just immeasurable, both research wise, spiritually, emotionally, everything.

[00:34:19]

And it's going to come at a cost. It's going to be a zoo and it's not going to be this glorious baby hugging moment that you think it's going to wait. It is. That's true. But having a one in a three year old in a house is always a zoo. And so there's a trade on that. So I'd pull them out tomorrow, not Monday. Yeah, I.

[00:34:40]

I've got a we got a six of them, six and under as grandbabies, and so I'm just a pop and I was a big proponent of naps.

[00:34:48]

Yeah, and that's hey, for whatever it's worth, I got a four year old. She's still taking naps. And I'd get my three year old back on a schedule and get some get some sleep boundary's.

[00:34:58]

You can get a couple hours that way each day and then you can get some early, early morning hours and, you know, work when others are sleeping, it'll come in and you can pick up some evening hours with your husband picking up some of the thing.

[00:35:11]

But one in three is high maintenance. They do nothing for themselves.

[00:35:16]

You have to do everything except destroy things.

[00:35:18]

That's the only thing that sells anything for themselves.

[00:35:23]

It's just, you know, they're wonderful. We love them, but they are high maintenance. I mean, it's you know, it's it's a lot of work.

[00:35:30]

So it's real. And I had forgotten it until we had a bunch of ones and three year olds running around. And we do now. And and when they're all at the house.

[00:35:39]

Oh, man. When I had a 10 year old and then just six years later, we Josephine came along and I forgot it all. I think there's a a measure of forgetfulness.

[00:35:49]

I don't know if we would do it again if we remembered all over and over and over, we wouldn't we wouldn't create the human race.

[00:35:55]

But the. Yeah, so I what you're asking to do is a lot of work. It's all a lot of love and it's a lot of good things. But you're really going to have to set some structure where you're running the house.

[00:36:10]

They aren't. And that's what the naptime thing comes from, to allow you to continue to get your work done. And you can do that. Some parents are better at putting structure in place than others.

[00:36:22]

And the more kids you got, usually the more structure you end up having and also recommend having one or two or three women in similar situations that you can be in contact with because you're gonna need a lot of grace. You're going to give your you're going to fall. You're going to get back up. You need folks to help lift your arms up when those moments happen.

[00:36:37]

Hey, man. Adam is with us in Austin, Texas. Hi, Adam. How are you? Hey. Hey, John, I'm honored to speak with both of you and have a great deal of respect for you both. Thank you. We're a little short on time. Go straight to your question, but I'll go.

[00:36:52]

I'll go quick. My question for you is, if I could sell my car, I bought a 20 20 brand new Toyota Prius, which I know is not what you teach a couple of weeks before the pandemic hit. At the time, I was living in California and I had a really long commute to work and I did the numbers in Beta and the Prius and it came out cheaper. So I went with it. Since I bought it, I moved to Texas.

[00:37:13]

I got a new job and got this crazy cheap out here. I was really close to the office and I'm wondering if I should take the loss and sell it and buy a bit with cash. I know is probably going to say yes, but I just can't qualify it by saying I already saved over 30 percent of my income and my car payments on two hundred eighty three dollars.

[00:37:30]

What's your household income? Seventy gross. What do you owe on the car? Hands down, although 14 now, OK? You have a twenty four thousand dollar car, you're 014, you say 30 percent your income, why can't you pay the car off?

[00:37:47]

Yeah, just pay it off, man. I lived in Texas and I drove a Prius. My wife drove a Prius. Pay it off.

[00:37:53]

Pay it off. How much money you got in the bank.

[00:37:57]

OK, so I have I'm twenty five and I have no I just saved up four or five months of emergency fund. How much do you have. Some seven and a half thousand or seven thousand five hundred dollars.

[00:38:08]

And you owe 12000 or you have fourteen thousand. OK. Right. And you know. Yeah. Put the do what we teach but everything but a thousand towards the car then let's get the car paid off in just a few months here man. And keep it. You like the car.

[00:38:23]

I can tell yo yo in the year 2030 you'll still be driving that car to Toyota and it'll be a beta. It'll grow to be a beta for you. Just pay it off, man.

[00:38:34]

Drive it long enough that it becomes the beta you yearn for.

[00:38:37]

That's right. That's right. Yeah, you're right there on the cusp. The only thing I wouldn't have done in this situation is I wouldn't have announced it would be I wouldn't about new.

[00:38:49]

But the you're there now, so yo, 14000 bucks. You got 6500 to throw towards it.

[00:38:55]

So you need seven thousand dollars quick. You're gonna get seven, eight thousand bucks and knock this puppy out so fast.

[00:39:01]

24 year old making seventy grand. Do it get cut your dadgum lifestyle, stay out of the parties and get them dadgum car paid off. You can do it man. Yeah. Good stuff John. Good show. Thank you. I put this this hour, the Dave Ramsey Show in the books. We'll be back with you before you know it. In the meantime, remember, there's ultimately only one way to financial piece, and that's to walk daily with the Prince of Peace.

[00:39:23]

Nice Jesus. This is James Childs, producer of The Dave Ramsey Show. You can listen to Dave Rachel Cruze, 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 today.

[00:39:52]

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 Cruze. 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.

[00:40:14]

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

[00:40:26]

Here's more from the Ramsey network, including the Rachel Cruz Show, wherever you listen to podcasts.

[00:40:32]

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.