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Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Studios. It's the Dave Ramsey Show where debt is dumb. Cash is king and the paid off home mortgage has taken the place of the BMW as the status symbol of choice. I am Dave Ramsey, your host, Rachel Kroos Ramsey, personality best selling author. My daughter is my co-host. This hour here on the air, we're answering your questions about your life and your money. It's a free call at eight eight two five five two two five triple eight eight two five five two two five.

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Samantha is in Houston, Texas, to kick this hour off. Hi, Samantha.

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How are you? Hi, I'm fine, how are you guys? Great, how can we help? So quick question, I've been listening to you since January, and I've been serious in February, but I've been serious by myself, my husband, I've been trying to get him on board and he's just not having it. He's he's not one of the things. He's not wanting to budget, OK, Isdell intensity. Yeah, like me, he just wants to kind of budget and I want to one hundred percent budget and be really strict.

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I don't want to make him feel like I don't honor him as my husband. And I don't want to make him feel like I don't want to work as a team.

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So I just sit down and do a budget together. And you ran him off by being strict. I think there may have been what happened to give me an example of a category he thought you were cray cray on. Eating out, for example, how much did you have for eating out? I had maybe 50 bucks because I know he likes to eat out for lunch, he doesn't like to take lunch with him.

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What's your household income? About 6500 monthly. And how much debt do you guys have? Oh, one hundred and eighty two thousand dollars on what most of it is his student loans. That's about one hundred and thirty three thousand. My car around 2500 on his car, both of our credit cards. That's pretty much what all of our debt is outside of the house.

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Got a lot of debt, but you have a pretty good income. What would you do? Well, I'm curious. What does he do? What did he do with that degree? Padam, what did he do? What's he do for a living? Oh, he works for the city. He manages a health clinic for the city of Houston. OK, cool.

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Yeah, but this is always tough. Getting another spouse on board is a question I feel like we get all the time. And I kind of have like a three pronged approach that I do. So like no one is sure why. So sitting down and not, you know, not barking at them about the budget.

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No, you're not doing this. I want you to do this.

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All that's explaining your why, like, what is your wife, Samantha? Is it because you're stressed out? Is it because you're fearful something happens, you don't know how you guys are going to be financially? Is it because you want to be able to live with the thought of like no payments and the freedom that comes with that? Are you doing it for your kids?

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Like like figure out your why and his and sit down and have that conversation, though, and explain it to him like this is what's going on in me. This is why I want to do it. It's more than just fifty dollars of going out to eat a month. Like, you know, you probably don't even want that either. Like, but I want to do these sacrifices in order to get out of debt so that X and fill in the blank and have that conversation and get his take as well.

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So start with like the bigger picture, kind of the more emotional side and then get tactical. So especially for men, I find that if you can do progress, show visual progress, they're more apt to do the plan. So you just saying, hey, we're going to fifty dollars, we're going out to eat. Sorry, like that's how it's going to be. He's probably. Oh no, I don't want to do that. I don't want to do that.

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But if you say, hey, you only have we if we choose to do this, that's only going to be X amount of months that that this is how our life is going to be. It's not forever. We're not going to do this for fifteen years. Maybe it's fifteen months. Or like you do the math and figure out this is how long it will take to get out of debt. If we budget like this. And sometimes I'm just seeing that progress, they're like, OK, because there's hope on the other end because he's probably feeling like you just took all the fun money and now I can't do anything.

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I can't have fun because you just want to get out of debt and it just sounds miserable. But showing the progress I think is is huge. And then lastly, Samantha, I would say if those don't work, bring in a third party. So whether that's one of our books, maybe that's the podcast, maybe it's a marriage counselor. Like, I don't know what it is, but bringing in that third party for you guys, I think can be extremely, extremely helpful.

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Yeah. So, Samantha, you don't have children. Yes, we have two children, 16 and 10. OK, let me give you an illustration that's not going to happen. But but it gets your attention emotionally, OK? Right now, it's like his mommy is saying he can't have money to go out to eat, you're not being his wife, you're being his mommy. That's how this conversation feels. He doesn't want that. And you don't want to be that, OK?

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Yeah.

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If instead you did what Rachel's talking about and you both had a really big reason.

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Then he would be on board to make the decision with you and, you know, the example I'm going to use is not going to happen. But if one of your children were ill and you had to save 20000 dollars really, really fast to save their life. He wouldn't be bitching about going out to eat. You know, because you have a big enough Y. He doesn't have a big name, why, and so he's not willing to sacrifice the now for the lighter because he doesn't believe the later it's not worth it and it's not worth it.

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And so that turns you into the nagging wife or the mommy and turns him into the little boy or the husband whose wife is listen to some crazy but guy on the radio and mister up.

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Right. And I turn me into a cuss word. Right. And so.

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Yes, yeah.

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So I think you guys back up and if you get it, if you go if you start talking about what Hogan says, the dream in high definition dream in HD and quit talking about fifty dollars going out to dinner, the 50 dollars going out to dinner will solve itself when you both have a big enough reason to do this.

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And by the way, you do if you're looking at this and you have one hundred and eighty two thousand dollars worth of debt and it doesn't scare the crap out of you, you're not really dialed in, which translation he ain't dialed in.

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This should scare him enough to go as a man, as a husband, as a as a person. I don't want this thing hanging over my head. And it's like he should have an oh crap moment, you know, but he hasn't yet. He hasn't yet, and when he does, it'll change everything, so I think you back up and quit using me as a stick to beat him, quit using the budget to try to control him the hilt to all this stuff faster than you'll do it once he has a reason.

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As if your child were ill and you had to come up with 20000 dollars, if you can get that in his head and go, if we do this for a short period of time, we can save this family's life. We can get out of 180 2012 the debt, because you make a hundred thousand dollars a year, you make more than that. You coming home with 6500, you said. Right. So, yeah, you probably make 120 a year.

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And so, you know, you can say we make too much money to be this broke. We're not ever going to be anywhere. We're stuck. We got to get out of this. The house is on fire. Run for the door. And you don't have to ask somebody to run for the door. When the house is on fire, they run. And so you don't have to ask somebody to save money for their out of their lunch money to save their child's life.

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If their child needs saving, you know, they do it.

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There's not a human on the planet wouldn't give up their lunch money to save their child. Of course they would. So all that illustrates is not that your child is ill or something like that, but all that illustrates is that if you have a big enough, why everyone is willing to sacrifice to get to it. Good. Good question. You're going to do fine. Hold on. I'm going to put that put you guys through Ramsey plus for a one year subscription, put the whole family in financial peace university, get him going through the class with you.

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It's going to change everything. This is the Dave Ramsey Show. Do you have student loans, I need you to tune in right now and listen, I've been telling you to refinance your loans with Splash Financial. Here's what I don't understand. Many of you who have been prequalified to refinance your student loans to better rates have not finished your dadgum applications. So this is simple. Finish it. You could save thousands and you pay nothing to refinance. Go back to splash financial dotcom slash Ramsey.

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That's how they'll know you're one of my listeners. Splash Financial Dotcom Ramsey.

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This is the Dave Ramsey Show, Rachel Kroos Ramsey, personality number one, bestselling author, is my co-host. The crisis this year has left a lot of people feeling scared about their money. Many times for good reasons, and all they know is, is that they never want to be in this situation again, but they don't know where to start. That's where you can help. As a financial peace university coordinator, online coordinators are everyday folks like you who walk people through our proven plan to get out of debt, save for emergencies, become wealthy and outrageously generous and never worry about money again.

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You don't have to be a money expert to be a coordinator, we take care of all the teaching Rachel and Anthony and Chris Hogan me.

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And you can even lead a virtual class as a coordinator right from your home. And just for leading, we're going to give you a free Ramsey plus membership for a whole year, and that means you get all the best tools, financial, peace, university, every dollar that syncs up with everything, the baby step track or all the communities, all the ask a coach things, all the stuff is there. You can stay focused on your own goals while you're helping people.

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As a coordinator, you can change someone's life and you can show them the way to take control of their money for good. No more fear, no more sleepless nights to learn about this and getting the free RAMSI plus membership for a whole year. A virtual financial peace university coordinator, text leader FPU to 33 789. That's lead FPU to thirty three seven eighty nine.

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Phil is with us in New York. Highfill welcome to The Dave Ramsey Show. Hey, Dave. Hey, Rachel. How you guys doing? Great. How can we help? All right. So my parents don't have a retirement. They both are in their early 60s. And I just kind of wondering what you guys have as advice I can give them.

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Are they asking? Well, I mean, not really asking, but they're definitely obviously very well concerned about it. They have to work, you know, pretty much they can retire. You know, it's OK. All right, because I'm I'm getting ready turn 60 and so I'm thinking in, you know, when outgrown kid comes into a grown parent's household, starts telling them what to do without being asked, it's kind of a weird thing. That's why I was asking about that, we call that the powdered butt syndrome once someone has powdered sugar, but they don't really want your opinion on money or sex.

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So the money.

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So you got to have to tread lightly in order to get traction is what I'm saying. You know, they will listen to you because they probably respect you. I respect my kids and I listen to them.

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But it's a very difficult conversation that direction.

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Yeah. And so there's going to be a lot of persuasion involved and so forth. And I think I would just start with asking a lot of questions.

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And maybe if you've had some, have you had some success turning your money situation around at all?

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Oh, yeah. I follow you your teachings. Well, it might sound something like this.

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Hey, Dad, I've been doing this thing for about three years or whatever. I'm making up the story. Okay. And this is what happened.

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And I, I did a couple of things. I got completely out of debt. And you know what? I'm able to really do some serious investing. And I know you guys are heading towards retirement.

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And if you'd like to do some really serious investing, I would be honored to show you what I did and see if it's something you wanted to do and talk about your story more than like wag wagging your finger at him going, oh, you're so stupid.

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You didn't ever save any money. And I got the answer.

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That one, I'm going to work. Yeah, but I think one of your questions is, you know, are you wondering to feel like how to direct them and what to do? Like if they do say, yes, we'd love to help, what do they do? So to follow that up, do they have debt? Well, so I kind of have spoken to them, you know, about the idea of doing that snowball and such, and they've they've caught on to that very well and it's been very good.

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It's a very good day. They started doing that. Yeah. And, you know, their their mortgage is very low. You know, their expenses are very low. They're not spenders by any means, you know, but they just need to get organized and kind of be on top of it.

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Yes. I think that encouraging them to get out of debt, get that emergency fund in place, and then at that age at 60, throw extra. Yeah, just throw everything at retirement, retirement, go crazy.

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But if you got completely out of debt by the house and the mortgage is low, then they could really jack up their retirement savings and they could really build a nice nest egg in 10 years. Right. That's what I was thinking. Yeah, but the trick of it is, as you probably heard us talk about before, your most powerful wealth building tool is your income. And right now, their income is being lost to two things, debt and disorganization.

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Yeah, and you get intentional get on a budget, but you've got them doing you getting them out of debt. You got them doing that. You've told them what to do and you just walk with them, be their cheerleader encourager and listen. The other thing is every time they get a little bit more excited, they can turn the heat up that much more. In other words, people it's interesting to me that when they get started, they're not as they don't sacrifice as deep as once they've had a few wins and you start having some wins and you think I can do this for reasons that snowball works, then you get you go deeper, you go deeper and you sacrifice at a place that five months ago you were thought was crazy and now you're doing all this crazy stuff because you're willing to do anything to get clear.

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Well, that was like Alex on that free stage last hour that she talked about, you know. Yeah, I was planning on ten years, paying it off and then eight years and then, oh, I was like really getting traction so I could do it at six. Yeah. It's like that is the same thing.

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Once you start to see that light at the end of the tunnel and the momentum kicks in. It's so strange.

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You're running a half marathon and you look up after running for two hours, you can see the finish line. For some reason there's enough left and you're trying to sprint. Yeah, because you can see it and you can still run in. And I went out and running a half marathon.

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I'll tell you. I'll tell you, I'm not bringing that up.

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I'm not going to. I tried. I trained for about two weeks. I thought, this is stupid. Running is stupid. Why would you do it? So, Kelly, I didn't come in the booth, said this in the Bible, only the wicked flee when no one is pursuing.

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Amen, sister. That's why she's so freakin men.

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No, we're not running unless somebody is chasing me.

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Well, oh, my goodness. Open phones. A triple eight eight to five five two to five. Andrea is in Baltimore. Hi, Andrea. How are you? Hi, James.

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Hi, Rachel. It's a pleasure talking to both of you. You guys are like a genius when it comes to this money stuff. Oh, bless your heart. How can we help today? So I just had a quick question. I make about forty K here and I need to I want to save money over ten years. That way I'll be like fifty five by then so I can work part time and then probably retire at 65. I currently have what you call a bridge account and right now it only has like about twenty two thousand in there.

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I was just trying to figure out my cost of living is around. To live comfortably would be around like fourteen hundred dollars. And I just wanted to try to figure out a way so I can work part time and do something I really like and just keep my job now because I have really good benefits with it. So what was something, how much money do you think I would need based on a forty thousand dollar a year salary? How old are you.

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I am forty five. I'll be forty six at the end of the year.

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OK, well the answer to your question is eight percent of the nest egg will support you. You have a big enough nest egg to hit your goal. And so if in your bridge account you had a half million dollars, that'll be forty thousand dollars. OK, and that's answer your question, but I think it is a different answer. I'm not waiting 15 years to find to do something I love. Well, the thing with my current job, no other job offers this anymore, so I invested in their private pension.

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So I've been there for, like, it'll be close to 14 years at the end of the year, but it's not worth being miserable.

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Now, what do you make? Forty dollars a year.

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Who says you can't get a job making 80000 dollars doing something you love?

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Because I don't have a college degree. I don't have a college degree to make 80000. Yeah, that's that's true. That's true. People do it all the time. Here's what I wanted you to do. I'm going to send you a book from Ken Coleman called The Proximity Principle. Ken, Ken does a show here on doing a career that you love, and it's going to teach you how to get into a career you love instead of just hating every day for the next decade because you have a nice pension.

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We're not doing that. Gross. And then you're going to read everything Ken Coleman writes and all the downloads that he has. And you're going to change your whole life with a change in your career using this stuff. Thanks for joining us, Samantha Ramsey, personality number one, best selling author, my daughter, Rachel Cruze is my co-host today here on the air, open phones at eight eight two five five two two five. Bo is in Melbourne, Florida.

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Hi, Bo. How are you? Hey, Dave.

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Hey, Rachel. I am so happy to be speaking to both of you.

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Eugene, what's up? Hey, so, yeah, just some quick background. Life is pretty good overall, I say I'm debt free, got an emergency fund, you know, three weeks into a new job, which I am learning a lot and I really want to do for a long time. How old are you? Twenty eight. I'll be twenty nine in September. Good for you. Congratulations. Thank you. Thank you so much.

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Yeah. So but with all that my parents bring up every so often, it's not the first time this has come up to just the topic of, well, you're doing all this great things, but you got to think about getting a credit card for whenever you want to buy a home and everything, too. And I'm just it's not the first time it's come up. And I'm just trying to look for some ideas or pointers on how to, you know, respectfully have this talk to them about this if this ever comes up again, because I've made it clear that I'm following your plan and that I don't want to go into debt or use one that, you know, the other thing they bring out, too, is, well, if you get a home without a credit score, you'll have an insane amount of interest or you may pay more interest you may want to use.

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So it might be good to have it anyway. So that's the main point that they're bringing up.

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And it's well, I'll start and just tell you that the information that they have is not accurate. That's just that's just simply not true. OK. Tens of thousands of people get mortgages every year that have zero credit score, you have to go and they do not get penalized with a higher interest rate to get the exact same interest rate and all. You've got to go to church, your mortgage that we've endorsed here for 20 plus years on the air.

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And it's called manual underwriting. And they check to see that you have a job and they check to see that you have a down payment and they check to see that you don't have a bunch of delinquencies on your credit. But if you have a zero credit score and there's no activity on your credit at all, you can get a home mortgage without a higher interest rate and and you can get a home mortgage. You know, you have to been steady on the job and you have to have a reasonable down payment.

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But it's like they're actually checking to see if you're breathing before they make the loan, in other words. And that's how it's done. And so I don't know where mom and dad got their information, but they're wrong.

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And I think both and a lot of people talk about getting a house without a credit score. There's some people that don't even realize that you can like some people like, oh, no, you have to have a credit score. Then there's those that have information that's not correct and that floats around a lot in that world. So they've probably read some article or heard a friend talk about it or something. But I think you having facts on your side is it's probably the best bet.

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And I mean, it's you could you know, you almost frame it like I appreciate that you guys are concerns, like, I appreciate that. But what you're concerned about is something that is unnecessary because of X, Y and Z. I'm going to you know, it's time to buy a home. Is it down payments? And this is the yeah. This is the route that I've that I've chosen to you know, if you wanted to, you could actually call Churchill Mortgage and just say, you know, I talk to a mortgage company and they told me they were able to do it.

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And it's one that works through the Day Ramsey organization. And they're, you know, they're endorsed by them. And so they've they've learned how to do. A lot of mortgage companies don't know how to do a mortgage without a credit score. The mortgage business has been dumbed down to where a monkey can make a loan.

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If the monkey can identify the number on the credit score, you got the loan, right? That's all it is.

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And so there's lots of problems with that for the mortgage business.

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But but, you know, when I got my real estate license a thousand years ago, in 1978 at 18 years old, the only way you could get a mortgage was they actually did underwriting on the loan, meaning they did a Vody. And you didn't fill out a form of verification, a deposit on your down payment in a VOA, a verification of your employment. And they made sure you were breathing and made sure that, you know, you didn't have outstanding warrants for your arrest and other stuff.

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You know, I mean, just just basically looking to see if you wanted to make a loan to this person instead of just looking at one number and going, oh, you got the loan. Right.

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And so but the business has changed and it is largely done on credit scores now.

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So a lot of people just don't know the information. And so and then the other thing that happens to here is this is a bit of a boundary conversation with your mom and dad. OK, this is not a conversation I would have with one of my grandkids, even if they were doing something I thought was completely wrong, I mean, they're still preaching to you with their parent voice is what you used a while ago.

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You don't get to do that when your kids are grown. When you're 29 and you're paying your own bills, you have to treat them like an adult and stuff. And so if I have Winston and Rachel were doing something that was out of line, I would not come in and go, you're out of line and use my dad voice. I would come in and go. Guys, I don't understand this, and I've got a question about this, and I'm worried about this and what do you think about this?

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And I would ask some questions that way.

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Instead of coming and going, you need to get a credit card because you're you're like 12 years old and you're going to do what I tell you to do.

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And so that's the debt. You don't use that voice on your grown kids. It doesn't work or unless your grandkids are wimps. And so and you're not a wimp, you're 28 year old stud. So, you know, you just be kind to your mom and dad, as Rachel said, be respectful, thankful for.

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You know, your interest in your concern, I talked to Churchill Mortgage, and it turns out I don't have to have a credit card and I'm really convicted, Dad, about not falling into this debt trap that all of America has fallen into. And I'm convinced that becoming wealthy is easier if I don't have payments. And so I'm just not going to fall into the trap of chasing a false God called FICO. I'm not going to worship at the altar of the great FICO.

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He is not my provider. FICO, thank you.

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We bring you offerings of interest so that you can give us good things like a home. I'm not worshiping at this altar. And you know, you don't be smart aleck, sarcastic like me. You can be kind and nice and respectful.

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Yeah. And to your parents, you know, their perspective is they may never have thought about this.

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Like there's people, you know, obviously millions and millions of kids you don't know and they don't follow this stuff. So you can enlighten them as well.

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Yeah, but I mean, it's like I was talking to a friend of yours the other day here in the building and she was telling me about, you know, five years ago when they first got married, the mother in law would come in and I would be upset if they weren't coming to their house for Thanksgiving and, you know, was like going to tell everybody what to do. And this is a grown woman she's talking to. And the daughter in law said, well, no, we're not going to be there on Thanksgiving.

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We're going to our parents on Thanksgiving next year. We're coming to your house. We do every other. And that's what we do. And this woman demanded that they were at her house every Thanksgiving and there was no alternative and you couldn't. And it was not leaving room for the grown child to make a decision order and let to make their own decision. And she said, well, of course, we're not doing that. And I thought that was an interesting thing.

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Of course, I'm not getting a credit card. And it wasn't like I'm mad at your son, but of course, I wouldn't do that.

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You know, it's just I thought that was a great answer. It's a different different a different position to take with the parent or the parent in law in terms of the way the conversation goes and so forth. So cool stuff.

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Marías with us in New Orleans. Hi, Marie.

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How are you doing, baby? I'm going to. Good. How can I help? I need help.

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Turn around down a career before I go ahead and pay my money for an associate's in business. In business.

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Yeah, well, you can learn a lot, you can do a lot with an associates in business so you could do any kind of business and there's like businesses everywhere.

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So that's a fairly broad career. You got a lot of options you could do with that.

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It's not going to be a magic wand that makes you successful. You know that, right? And it's not like you pay your money, you get the degree and automatically you're a successful person, you know that, right? Yeah, I don't know what I want to do, so I feel like I have a degree and I don't know what to do with it afterwards.

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Yeah, what do you want to do, marry? Like, what would be what would be a dream, a dream career for you. Dream job. I like creating products, I'm creating products, products, products, great job sketches of themes that I feel will help parents and myself. I have two young kids. Yeah, I do sketches all the time and I'm like me. And if I could just make this a product that would help so many people.

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Absolutely. Yeah. That's something you could expand, that you could learn how to do stuff with an associates. But as you study their associates degree and you look at the classes you're going to be taking, make sure there's some stuff in there on prototype design and on product design, if you like. Creating physical products is what you're talking about. Not digital, not paper. You want to create a real thing that people touch on is manufactured in a factory.

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That's very cool. I would do it very. Our scripture the day first, John, five 516, and this is the confidence that we have toward him, that if we ask anything, according to his will, he hears us. Mary Barra says it's OK to admit what you don't know.

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It's OK to ask for help. And it's more than OK to listen to the people you lead. In fact, it's essential. Jerry is with us in Youngstown, Ohio. Hi, Jerry.

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Welcome to The Dave Ramsey Show. Hi, guys. Good to talk to you, you too, man. I need some advice on how to get out of some stupid that I did. I was told that free house, everything, the whole business. I'm 60 years old, had my own company. Last November, my accountant advised me to it would help my expenses if I purchased a vehicle. So for my company. So I did that. Now I have a thirty thousand dollar car and I'm driving around.

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I still have to pay for it all and prove it hit in March. And my 100000 lower income is not going to be about 50000 this year. So I did my emergency fund. I still have about fourteen fifteen thousand left, but it's dwindling quickly. Obviously I did just start going back to work actually this week, so that's going to help out.

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But so what would be going on the car and firing your accountant. Yeah, really, that's the truth. I mean, I know the car and fire your accountant. Really? Yeah, well. I did have some money that I could pay for it with, I guess, can I? How much money do you. Well, in my I'm six years old, so I have a retirement of about five hundred and seventy thousand. My I have another three and a little odds and ends about fifty 50000.

[00:31:20]

Cash them out with and without any penalty. You're going to pay taxes on it.

[00:31:24]

Right. I guess that's where the question comes from. Should I do, should I do that. Well the question comes to us.

[00:31:30]

I still don't understand that whether you have a car you wanted or your accountant wanted it. Well, they advised that it would help with my business, but it that they're stupid. So that was dumber than dirt. I mean, you didn't make thirty thousand dollars because of that dadgum car. No. OK, that's just dumb. OK, it is I mean, think about it, the guy is just he's trying to save you money. But listen, any time you take a tax deduction, it's not 100 percent savings on your taxes.

[00:32:01]

He was run, run, save you on your taxes. Well, I can save you on your taxes, give 30000 dollars to a ministry. And guess what? You're a thirty thousand on a write off and you don't have thirty dollars in debt. So, I mean, but guess what?

[00:32:11]

You don't get a thirty thousand dollar deduction on your taxes. You get your tax rate times thirty thousand dollars as your deduction. That's why you need to fire your county.

[00:32:19]

Know, I do math and so really, really, really dig a new accountant. But yeah, I did get a new account. Good. OK, we got that.

[00:32:27]

PAKSAS So the only question is, do you want to keep the car? If you have thirty thousand dollars piled up in the middle of the table, would you go buy a car right now just like that one if you didn't own that one?

[00:32:35]

That that's something I mean, would you go buy a car just like that one if you had 30000 dollars piled up in the middle of the table? Probably not just like this without I wouldn't need this much of a car.

[00:32:46]

No, that tells you exactly what you do. Jerry. This whole thing was birthed in a bad idea and paying it off doesn't make it a good idea if you want to pay it off and keep it, I'm OK. Dude, you got plenty of money. I'm just challenging the whole decision making process for you.

[00:33:02]

I'm just pushing back on you to shake you up a little bit, make you think make you think you don't need it cause you're counting, Senator, because Dave Ramsey said to either one, Justin is in Memphis.

[00:33:13]

And that didn't do that. Right. There he is. Justin's in Memphis. Hi, Justin.

[00:33:17]

How can Rachel no help? Hey, David. Rachel, thanks for taking my call. Sure. So here's the situation. My my father passed away April 20th from complications. And, you know, my dad was a great provider for our family in life and and in death. And so my question is my mom, who's in good health, she's doing OK. She's got a good church community around around her supporting her and family. She lives in Louisiana.

[00:33:53]

She's my dad taking care of her. Even in his passing. She's taking in over 10000 a month in retirement and she's got all debt paid. Has she able to be outrageously generous? She has been for years and can really even more now. She so she's in good shape. No debt house paid off, course paid off, everything great. My question is she's also getting a significant one time gift or not a gift, late payment and related to my dad's passing of 250000 dollars.

[00:34:31]

And so she's asking me what what should I do with this? And so because of her financial situation, I just wanted to call you and listen to you for years. And and I think you thought you'd be able to help me kind of guide her what to do with that money, where to put it. Like I said, she's got not only taking care of her bills monthly, but also has other retirement accounts. So, you know, that's my question.

[00:34:57]

So, Rachel, we always tell folks to wait a little bit, right? Yeah. During the grief process, you never want to make any major financial decisions.

[00:35:07]

Exactly. Exactly.

[00:35:08]

So what I would coach her to do is two things right now. One is just park the money in a CD just in a bank. She'd just boring as crud.

[00:35:21]

It's not going to make any money. It's like a losing money. It's just parking it where it's safe because your dad's passing is still very fresh. It's very hard to make real clear decisions after being married to somebody. And I've been married 38 years, something happens to Sharon. My brain is not going to be working good for a while.

[00:35:41]

Absolutely.

[00:35:41]

OK, absolutely. And a little bit of time gets you gets the fog of grief off your brain.

[00:35:48]

And it can be like up to a year, six months to a year. So by a six month CD and do nothing, that's thing one.

[00:35:57]

The second thing is I think I'm hearing and if I'm wrong, you can tell me it's OK, OK, that your dad handled everything and your mom is a little bit intimidated because she's never, never handled the money.

[00:36:13]

That's that's not necessarily the case. She handled she paid their bill honestly. She paid their bill so she can. I guess what I was trying to illustrate is that he just he had he had done a great job with what?

[00:36:25]

The setup of the estate. OK, that's great. That's better news that they have because I don't want her doing. I heard I heard outrageously generous.

[00:36:33]

And she's completely set up and she's grieving. Sometimes people give all their money away and they look up and realize that, ah, they buy a bunch of things when they're grieving and they look up and realize they made a mistake. So you think she's got good guardrails to keep her from running off the road?

[00:36:47]

They've she's teaching me the things that you teach, OK? I mean, you know. All right. I know. All right. That's good. Anyway, so perfect.

[00:36:56]

OK, so, so well, the fact that she was asking you what to do with it was OK, too. So what I would do is park that money. She's 100 percent debt free. She doesn't need the money. She doesn't need the pressure of making a decision right now. And I want her to begin to meet after six months with a smart Vesterbro or two and select one that she has a comfort level with. And you probably know this, that we're going to tell her that she needs to get a smart Vesterbro with the heart of a teacher.

[00:37:23]

And what that means is she's going to know what to do with the money because she's going to learn and then I'm going to invest it in good mutual funds and let it be yet another stream of income for her and another chunk of inheritance for the family. But I don't want to do that today, I don't want the pressure on her to be a to be learning about investments 60 days after she lost her husband.

[00:37:47]

That's absolutely right. And the money is coming on Tuesday and it's coming in the form of a check. And I told her, I said, listen, you know, you can hang on to that thing. You don't have to do anything with it. Right now, you don't feel any pressure about it. That's your firm. And kind of what my thoughts are.

[00:38:02]

If you're right on track, then that's perfect. Just parked in the shade for six months and cry. Stay on the guardrails with the money that is there and is coming in so you don't mess that part up and then begin to learn when you feel healed enough from someone in the business, don't do what they say, don't do what I say, don't do what Rachel says, learn and then make your own decision. And that's what our smart Mr. Pros are required to do to be teachers.

[00:38:29]

Yeah, absolutely. But it's a tough time. The grief stuff is just really hard. So sorry for your loss. Just so sorry and for your mom as well. Thanks for calling in, brother.

[00:38:39]

Rachel, good job today. Yeah. Thanks for having me on. Absolutely. James Childs is our producer. Kelley Daniels, our associate producer and phone screener. I am Dave Ramsey. Your host will 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. Christ, Jesus. This is James Childs, producer of The Dave Ramsey Show.

[00:39:10]

Once again, you made The Dave Ramsey Show, one of the top four most popular podcasts last year to get your daily dose of motivation and inspiration from the Ramsey network subscribe or follow today wherever you listen to podcasts. Hey, if you've got questions about retirement investing and becoming an everyday millionaire, go bigger and broader with my man Chris Hogan on the Chris Hogan Show. I am excited to be able to talk to you all week in and week out.

[00:39:39]

We're going to focus on your calls and it's going to focus on building wealth investing and how to become an everyday millionaire. Subscribe to the Chris Hogan Show wherever you listen to podcast.

[00:39:50]

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.