Live from the headquarters of Ramsey Solutions, broadcasting from the car rental studios. It's the Dave Ramsey Show where dad is down. Cash is king and the paid off home mortgage has taken the place of the BMW. The status symbol of choice, Rachel Cruze, Ramsey, personality number one, best selling author, a couple of times over, is my co-host today here on the air, open phones at eight eight two five five two two five eight eight two five five two two five.

So Rachel Article came out in Ink magazine today. Southwest Air just made a tough decision. Is it risky or smart? Southwest is trying to do one thing. Harvard Business School, they say, to do the opposite. Well, I think I know whose side I'm going to come down on this already. I'm just guessing that Southwest Air might know more about business in their little finger than Harvard Business School doesn't. The whole freakin campus. But I could be wrong.

Let's look and see what the article says. Both the United Airlines, American Airlines warned over the summer they would start furloughing thousands of workers on October 1st if that day passed without an extension of the federal aid to airlines that the government approved in April. The October 1st deadline passed. The stimulus didn't. But at Southwest, which lost 17 million dollars a day.

Oh, my gosh.

During the third quarter, 17 million a day has seen revenue drop 70 percent. CEO Gary Kelly did something a bit different. Now, sidebar, it's fair to note because I'm biased. Rachel's biased. We know. We know Mr. Gary Kelly. And but you know him. I don't. Well, you. But you've met him here and I know him fairly well. And he's spoken for us at entrepreneurship. And he is an incredible, wonderful and incredible leader and a person of character.

So I will go ahead and say that I know that up front and that would taint my reading of this article. This week, Kelly recorded a video for employees in which he said Southwest will keep its streak of not having had layoffs after furloughs for its entire history, at least until the end of the year. While Kelly would, of course, welcome federal aid, he said he's no longer counting on the government. Instead, he wants Southwest to cut its own corners.

He starting with himself. He will go without a salary until the end of the year and until the end of 2021 for a year and a half. Yeah, the other senior executives will take a 20 percent pay cut during that same period of time. Other non-union employees will take a pay cut of 10 percent so that everybody can keep their jobs.

Kelly promised there would be no layoffs through the end of 2021 and their salaries will snap back, regain the 10 percent pay cut after one year. He said he'll also be asking unions to match the pay cuts. My goal has been, and it remains no furloughs, no layoffs, if we fail to reach an agreement on reasonable concessions with the unions quickly, that will be the last resort, basically putting the ball in the union's court.

Both of the unions representing Southwest air flight attendants poured out cold, poured cold water on the idea of voluntary cuts. Flight Attendants Union sent me a statement saying they had made it clear that the company in previous conversations that our members are not interested in making concessions to a contract that took decades to obtain. Agreeing to discussions is different to agreeing to concession. So we put the unions in the corner and they're coming out looking like fools, because if you're if you're a union guy and you don't understand that that money's not there, it doesn't matter what your contract says.

I can help you with that, they're going to lay your butt off, you're gone.

OK, union contracts do not create money where there's not money and when the entire top echelon of leadership takes a pay cut and down and no pay and everybody else takes a pay cut, but you stand there with your little lip stuck out, it leaves you guys looking stupid in this union. I'll just tell you, I mean, you union people be mad at me if you won't be mad at me. But this is this is a basic math problem.

A company trying to survive, trying to help everybody keep their jobs and the unions being a grouch. There's a different unions.

You know, if the company being greedy. Yeah. Get after them. But this is not about greed. It's about freakin survival. You dubois'. It seems pay cuts might be best, but it happens to fly in the face of the advice that Harvard Business School Professor Christopher Stenton and some of his colleagues give. They say lay people off instead of cutting salaries. Otherwise, you risk your top performers moving on and you risk morale. They don't take into consideration that morale is not a problem at Southwest Air.

Oh, I was going to say morale. I you almost I mean, if I'm working for a company and the CEO and the top execs are cutting their salary, that makes me taking no pay and he takes no pay. That makes me almost more loyal to them where I'm like, you're sacrificing your life to keep me.

Thank you. I mean, you would think, yes, but, um, I think it would. So it's just funny that the Harvard guys are like, oh, no, that's going to, like, hurt morale. Yeah.

Obviously, they think morale is based on money and it's not it's based on culture. And one of the strongest culture companies in America is Southwest. Yeah. Yep. And the culture there is you can cut it with a knife.

It's so thick. I would travel. I traveled all the time on commercial for so long southwest. I ended up that's the only place I would fly because they were the easiest if stuff happens. Oh they were so accommodating. They're wonderful. Wonderful compared to other airlines. So Southwest we're big fans.

They're not advertisers. They didn't pay us to be sponsors or something like that.

But where I went, I will southwest if you want. If you want to come, I want to come on the radio to be an advertiser while you're broke. Don't be great.

But I don't think this is happening right now. I know I'm going to help you with that.

They just cut pay, OK? I know. I know. I know. I know. I'm putting two in there together.

So this is all about saving jobs. Gary laid out a plan, the article says, to do just that, save the jobs. Our business is in intensive care and our CEO is doing everything possible to save jobs and navigate through it. Now we pick on all of us in America, pick on politicians, and we pick on corporate greed people. But when they behave in manners, that is not greedy, when they behave in a manner with character, we also need to call them out and say, well done, well done, because I don't know when I've seen in an organization that size the leadership team step up and say, we're not going to get paid so you can keep your job, we're going to survive.

It's amazing.

And now they make a lot more money and they've got some money in the bank. And they're probably I sure suspect Gary's a millionaire multimillionaire. He probably is. He should be. He's the frequency of SW. I mean, really.

But, you know, he in other words, he's probably OK at home. It's probably going to lose his house because of this or something.

I suspect that would be shocking to me. So it's not like that.

But but they did, you know, leaders. Real leaders put the team that they lead the good of the team ahead of themselves. Otherwise, you shouldn't have a team. You know, if your team's not worthy of you being sacrificial to keep them in place, you shouldn't have had them there anyway. You should have already fired them because they're not worthy. And so this is the way we did it at Ramsey, but we're a little 900 person organization, we're not seventeen dollars million a day burn rate.

Goodness, it's hard to get your mind around. But, you know, there are some people out there in the middle of this covid suppression nightmare, ridiculous mess that we're in the middle of economically, that was contrived as crud. But the airlines are just there. Their finances are a disaster. And here's a guy standing. With his face in the fire doing the right thing, hats off to you, my friend Gary. Hats off to you, Southwest.

We love you. We hope you guys make it. We hope you turn it around and prove one more time that we already knew that Harvard Business School is not worth the money. This is the Dave Ramsey Show. Around here, we're always looking for ways to save money. That's why I am a huge fan of Honey. Honey is a free online shopping tool that automatically finds the best promo codes and applies them to your cart. You never have to open a tab to search for a discount again.

Money has found it's over 18 million members, over two billion dollars in savings. Add honey on your browser today for free at joint honey dot com slash Ramsey. Ramsey personality, Rachel Crewes, number one, best selling author, author of the new book coming out in January, Know Yourself, Know Your Money on Presale Now is my co-host today here on the air. Dan is in Cleveland. Hi, Dan. How are you?

Hi, Dave. Hi, Rachel. How are you guys today? Great. How can we help? Oh, so I have a quick question for you.

So I know that you have talked about the rock, paper, scissors when it comes to investing. And I'm we're getting ready to start baby steps for here. Good. And so I have a question because I have a full time job. So I do the you know, I'm going to be setting up the Roth IRA, but I also work for my daughter's health care provider. So I'm also self-employed and can do an SICP. I just never hear you mention that when it comes to rock, paper, scissors, I don't know where I think the ship is now available in a Roth or a regular and all.

It is a simplified employee pension plan. It works best for solo proner, meaning you don't have employees, which is your case.

Yes, OK, because if you have employees, you put the same percentage into their account that you put into yours. Right. And so if they've been waiting for you, if they've been with you more than two of the last five years. So, yeah, I started with a separate. Then when I started adding team members, I canceled rolled this up into an IRA to started a simple.

So in your case, you if you can't get a regular Roth going and you can't get enough in your 401k with your match and it's a Roth over at work, if those two, three things combined don't get you to 15 percent, you could do the SEP.

I wouldn't add the extra layer to your mess. It gives you no real advantage unless you need it to get up to the 15 percent. Oh, gotcha, OK, that makes sense. And so I'm I'm a school teacher, so the wrath would be on my own because our four three BS at school actually are all annuities manage.

They do not know more then their traditional, so you probably are going to use ASEP, then you're going to do a traditional, you're going to do it, you're going to do an individual SAP.

Are you married? I am, yes. OK, so you both do a Roth IRA. Maxed out. OK, so 6500 each and then if that does that get you to 15 percent if you're not doing anything in the four or three be.

That would get to 15 percent, OK, if it gets you there, then we're done. If it didn't, then you would do a SEP oh ROFO before you did a four O3b. OK, and maybe I misspoke because I guess it wouldn't get me if I'm including my self-employed income, then no, I wouldn't be at 15 percent. OK, and your wife is 15 percent of my teaching job. No, she does not have income.

OK, so we take your all your income times point one five. The first thing we do is we're going to dodge the 403. B, because it's not A and it has no match. So it goes to the end of the line, it's to the front of the line.

And you're going to do an individual, IRA Roth for you, one for your wife. OK, and what is your income? My income, my teaching job is 85000 and my part time job for my daughters, about thirty thousand. OK, so we need like sixteen thousand dollars going in, and if you do two, if you do to six thousand dollars Roths or 6500 on a Rothery would be a twelve thousand thirteen thousand dollars. So you're not there.

You're right. So you do need to look at doing a Sep Roth.

OK, and you can do all of those, you can do your regular Roths and your Saraph, all with your smart Vesterbro and then those three things totaled up should get you to your 15 percent for your baby. Step four. I would do all of that before I did a non matching traditional 401. 403. B, especially when it's going into annuities.

Is it common for four to three BS with them teaching not to match?

Yes, and it's also common for them to have crummy annuities as the investment because insurance companies got into the teaching world rather than investment companies with these government packages. And so there's a lot of teacher deals, few of them like in hospitals you run into him to with nurses and that kind of stuff. The 403 BS, a lot of them are annuities rather than mutual fund options.

Yeah. And so even if they have mutual funds inside the annuity, it's still while watered down and commission driven and it's very inefficient. So they're generally not as good a plan. Some of them, some school system, do a great job of putting good options in there. So it's not the fact that it's A 403. B, it's the fact of who's been serving the 403 B and what kind of products are putting it up under it. Right, right.

And that's what gets them into trouble.

Sudo is with us in Orange County, California. Hi Sudo. How are you? Thank you, Dave and Rachel, for taking my call on their financial advice. God bless you guys. You too. Can we help? Scientists have been using every dollar budget has worked out really well for us to have paid off twenty four thousand dollars over the last two years and we are 100 percent debt free. What I see is a congratulations. So thank you.

Going forward, we are in the process of refinancing our house right now. Our lender told us that Freddie Mac will give us an appraisal waiver as long as the loan to value is just at 80 percent or about the charges of PMI and give the credit. But however, if we pay down the principal and it goes down to below 80 percent, then there will be an appraisal needed. And then if we were to go with the higher LTV, then the PMI would stay on for two years, even if the loan is paid on the below 80 percent.

We were a little bit confused on what approach to take, whether to take the PMI with the credit or whether to go in for a formal appraisal. Now that we know the valuation from Freddie Mac. And Freddie Mac, sure, you're doing a jumbo loans, a large loan, right? Yes. So the loan is for seven hundred and ten thousand dollars.

Yeah, OK. All right. Right around eighty point zero. Five, six percent. So I'm wondering whether we can use the Freddie Mac valuation as a yardstick and confidently go in for a formal appraisal thinking that it's OK enough to be at least that much higher.

Yeah, if you wanted to have a realtor friend of yours just run from comps that the same comps that the appraiser is going to find if he does a formal appraisal because a residential appraisal is not rocket science, they find the three closest comparable sales in date and in attributes. And so it's really not. And they take the average of those adjusting for the differences. It's really not rocket science. It's a little bit above 6th grade math.

And so then, in other words, the residential good realtor can pull the same exact play out of database that the appraiser is going to pull from and tell you very closely what that's going to be in a real estate business. They call it a comparative market analysis, but it's an appraisal. It's the same exact process. I've got a degree in that.

So we actually, you know, took that whole world apart and put it back together a couple of times. So but yeah, what I'm going to try to do is go ahead and get this thing appraised now and get rid of it. If not, you're going to be very close. And I would be willing to pay the appraisal later to get rid of the PMI rather than get jacked on the other side. So I like I believe it was option A, the first option you had there where we're going to go with the formal appraisal.

It's not that expensive considering you're dealing with 110000 on a loan.

And so the whole idea is what's the most efficient way to get rid of the PMI?

And, you know, if you've got the valuation, the most efficient way is going to be the appraisal now or shortly or do it again in a year when the values come on up and you get the thing driven down with that PMI on seven or ten thousand dollars for two years.

Yeah, it's a lot. It's a lot.

Well, and even after two years, there's an upward interest rate adjustment. So it's in you're probably better off just to do a peer deal, a clean deal with real appraisal and looking at the whole thing. To recap for those of you listening. If you don't put down 20 percent on a Freddie Mac, which would be for a larger loan like that, or a Fannie Mae, a more traditional sized loan, a conventional loan on a home, they charge you PMI, private mortgage insurance, private mortgage insurance insures the bank.

If they have to foreclose on you, it covers them against a loss. So you're buying foreclosure insurance for your bank that pays them if they foreclose on you. It seems kind of weird to me, but they get away with it. So that's what you're doing.

And it's seventy five dollars a month, roughly per 100000 dollars borrowed.

That's a lot of money when you're talking about seven in 10.

So one reason we say to put down 10 to 20 percent and you hit that 20 percent or so PMI, if you get rid of that 20 to 20 percent, gets rid of that PMI.

Exactly. This is the Dave Ramsey Show. You know, I don't sit back and just trust that politicians have my best interest in mind, which is why if I had student loans, I would not be waiting around for the government to save me right now, splash financial as some of the lowest rates they've ever had.

If you have private student loans, get your rates down. Now, no one's going to fix this for you. Take control of your own money. Go to splash financial dotcom slash Ramsey. That's how they will know you're one of our listeners. Splash financial dot com slash Ramsey.

Rachel Cruze Ramsey personality is my co-host today, open phones at triple eight eight two five five two two five Blanker is with us or blanker in Rockford, Illinois. How are you?

Good. How are you guys? Thanks for taking my call. Sure. Can we help? So my question is, I'm I just recently started baby step number two and I currently live with my parents. But the house that we live in, I actually own the mortgage on it under my name. And I'm just wondering, I've been thinking about getting my own place, just a rental, but I'm not sure with me trying to pay off debt, if I stutter, if I just stay here, I am helping out with half of the mortgage currently.

Obviously, if I left, they would take care of it from there. But well, I mean, I'm not sure where to start with.

Only a little bit of clarification, actually.

They live with you. I guess so, yes, I don't live with it. It's your marriage, though, when I bought it. I'm sure.

Again. When I purchased the home, I intentionally purchased that for them. To give just as a gift because they were in trouble. What was the thought behind it? So.

So they so their credit isn't the best. They couldn't go off and purchase a home under their name. So I went ahead and did that for them. Um. What's their situation now, how are they are they making an income, are they stable? Yeah, I mean I mean, they're they're making an income. They've never been the best with money. But they'd be fine if I if I was to leave, they could take care of payments and stuff.

Yeah.

Basically, though, you have a rental house your parents are renting for the payment. If you move out. It's not their house. Yeah, technically, you're right, not not tech, I mean, there's no technical I mean, you own the house and I go down the courthouse and look it up. It has not got their name anywhere on it. It doesn't have a name on the mortgage. It don't have their name on the title. You own the house.

And if something happens in the front yard, you're responsible. If someone gets hurt there on the property, you are the one that's liable if there's no insurance.

Right.

If the payment doesn't get paid, nobody calls your dad. Right. They call you. So this is not technical. This is factual. OK, I understand emotionally it's I was going to say you have allocated this house to them, I get that, but you need to grasp that this is a real impediment. This is a real problem for your future, that you have this rental property with some simar weak renters in it. OK, that's bothering me, I love that you love your mom and dad this like this and that's all cool.

But we've got to really say, hey, there's some real risk here for you.

How old are you? I am 28 years old, and what do you make I'm making about forty eight thousand a year and how much other debt do you have other than this home that your parents live in?

I have about thirty two thousand dollars in debt, mostly student loans. OK, and how much progress are you making on that? I just started baby step number two, so I've only paid off about like five grand so far. Good. That's more than you've ever done.

Yeah, proud of you. Very good. Thank you. OK, so let here's what we need to do, let's pan back. OK. Five years from today. You'll be 33. Where do you want this situation to be with the House and with the debt five years from today? I mean, for sure, my dad paid off eventually I would like to purchase another home, so I guess I would have to see about the possibility of either transferring that mortgage to the.

They would need to be able to if we'd give them five years and say, you need to get your credit and conditions so you can refinance this loan into your name, and I'll need you the house.

OK, all right, we've got there needs to be an end to this that's positive, and the only way that happens is if we create careful steps to get there.

So you're about to put mom and dad on a budget and walk with them to make sure they now get good with money so they can get a loan. Because let's pretend you're 38 and you get married and daddy quits paying the bill. Yeah, your new husband's not going to be real thrilled with this bill laying over here, associate with your parents. Yeah, and so this doesn't my point is this doesn't scale well, it doesn't it doesn't project into the future.

Well, today it's all OK, right? You're safe. They're safe, everybody's happy. Nobody's mad at anybody. We're not trying to rock the boat.

But I just want you to think about, OK, long term and then what are the steps to get to where I want to be long term?

Yeah. And I think having an out of the house banka is going to be really wise. And I think because it's something as large of a purchase, like a home, like we're not talking about a car or anything like that, like it is at home. So giving them a few years out, I think is really is really smart because I think you're going to look up eventually. And what what was intended to be such a gift and so kind on your ends and really trying to help in turn may not be a great decision for you.

And there's a point as an adult that you kind of have to create those boundaries and say, OK, this is my life and you're not being unkind to your parents by any means. But what is smart for me to do in this moment? So that way you get your stuff cleaned up so that you can help them later if you need to, but you just weren't in a great position to do it in the first place. You didn't know it at the time.

And again, out of the kindness and goodness of you really, really thought that you're helping. And I think that the smoothest transition out is that communication and having a timeline for them to take over the mortgage probably sounds like this. Mom and dad were about to have a little meeting here.

I love you guys did this out of the goodness of my heart. We have to have an end game. You have to have it. We have to have an exit strategy. So I'm going to stay here for two more years and continue to help pay part of the bills while I get out of debt. During that time, you're going to get on a real tight budget. We're going to get your credit cleaned up because we got a five year plan for you to refinance.

And let's get the house into your name. I want you to have the pride of ownership. I want you to not be living in a house your daughter owns. I want you to be living in a house you own.

And that's going to be great for you. And it's going to get it out of my name so that I can move on with the next step of my adult life. And I love you and we're going to work together to accomplish these things. I'm staying for two more years. Nobody's mad at anybody, but we are not going to just kind of wander off into oblivion and pray this all works out because it ain't it ain't gonna work out OK.

And what that does is I think that puts pressure on the parents in a good way, though, for them to to get their dignity. This may be a time where you're like, hey, maybe under the surface you've been enabling some bad financial moves on there and they're able to be maybe a little lazy says they're not great with money and they've kind of had the safety net of you for the past few years. But this home and when you put that pressure on to make them actually behave and get on a budget and get on a plan and they start to win, if they if they choose those steps and become financially healthy, I mean, for them, like, that's that's that's helping them, you know, in the long run like that.

That's a beautiful story to say.

There's a lot more dignity owning your own place as you go into retirement than living in a place your daughter bought. I mean, there's just dignity to that, and that's a good thing for him, a good thing for her. So I tell you what. Hang on. But Blanca, we're going to have a Keli pick up. I'm going to sign all three of you up for Remzi Plus.

We're going to walk with you and show you how to do this. OK, we'll put you through financial picture university, get you on the every dollar budget, get mom and dad on that. We're all going to work this plan together. You're going to live there so you can all do it together. It's awesome. And you can, you know, cheer each other on some wins and be able to head towards some positive goals. But there needs to be a catalyst, a little shock that changes the direction of what's been going on here.

You've changed your direction. Let's change their direction with it so that it doesn't hold you back. And so they get their dignity of home ownership as they go forward. So that's let's work together on all that. Hang on, Keli, pick up. We'll get you signed up for all of that good rule of thumb. When you're making a decision like this or you're helping out somebody, don't look at it in the moment. Only ask yourself, how's this going to be working ten years from now?

Has most of the time it's not. This is the Dave Ramsey Show. Our scripture of the day taught us three five, he saved us not because of righteous things we had done, but because of his mercy. He saved us through the washing of rebirth and renewal by the Holy Spirit.

Ray Goforth says there are two types of people who will tell you you cannot make a difference in this world, those who are afraid to try and those who are afraid you will succeed. It's good.

Ouch.

Well, a couple of things going on around Ramsey right now, especially with our lady personalities. You need to know about Chris Christie. Right's Business Boutique Academy is an open enrollment through today. At 8:00 p.m. tonight, enrollment closes.

You will not be able to get in. There's only a few hundred a few thousand people in this. And it's basically personal coaching. Hundreds of videos on how to start how to run a business business boutique is all about equipping women to make money doing what they love.

It's Christie's baby. She Roxette. She does a great job with it. And check it out at Christie.

Right, Dotcom, you've got until eight o'clock tonight and enrollment will close for about six months on this because we keep this thing at a certain size and we want these ladies going through these processes at the same pace. We don't want newbies joining every day. And it works. It's really strong. It's great. Yeah. I mean, this this whole process of I even had a friend just texted me. She was like a kind of restart this business.

I think I want to just get in the academy. And I was like, do it, do it, do it, do it, because it helps you whether you have an idea whether your ideas functioning and it's kind of small or you want to grow something that is that is full on and gear. So, yeah, all the all the videos. And Chris does does a phenomenal job for sure, Kristie.

Right. Dotcom is where you can find all of that. The other thing that's happening as we launch today, the No yourself know your money livestream event that is now available.

Rachel is going to be doing this on October the 28th with Dr. John Delany, Dr. Henry Cloud and Ian Chron from the Enneagram.

And they're going to talk about how important it is to know thyself. The unexamined life, Socrates said, is not worth living. You only get better when you look in the mirror and say, oh, you're the problem.

And when you do that, you will move forward with your money faster than if you just use a money technique.

And Rachel's written about that in the new book, Know Yourself, Know Your Money.

This unbelievable deal is only 15 dollars to watch these world class teachers, all four of them bestsellers, all four of them, some of the best teachers and speakers, all knowing yourself.

October the twenty eighth, only fifteen dollars. And if you want to buy the book as a part of it, you can get the book for only ten dollars more. So twenty five dollars get you the book and the livestream.

And so be sure and go to Rachel Cruz, Dotcom, Dave Ramsey Dotcom and get signed up for this. This is a line up. Oh yeah.

The audience is going to be so fun. Some of my favorite people honestly and in the space and in this world of diving in and understanding yourself more, it really gives you the knowledge and the power to say, OK, what are my strengths, what are my weaknesses? This is why I do the things I do. And having kind of that awakening, if you will, that that awareness, it helps you in so many areas of your life, but including your money, so much of the money problems that I see.

Oh, gosh. People think, oh yeah, they're just money problems. I'm like, no, there's actually a lot of life problems underneath that. And when you can understand how you take how your wife or your tendencies, how you grew up, all of that wrapped in is in the new book Now yourself, now your money. And really to gain that knowledge, it helps not only within your relationships, but it helps you win with money faster.

It's going to cause you to smooths out the journey and people get from point A to point B faster once they realize, hey, I'm a nerd and I'm going to use the strengths from that. But I'm I use the bad parts of that or I'm a saver or I'm a spender and I'm going to use the strengths from that. I'm not going to or I'm mindset's I'm going to buy this.

Yeah. Or scarcity is a problem with abundances. You believe everything is going to work. Oh yeah. Absolutely. Absolutely.

Yeah, that's me. I've got a huge abundance mentality. I think it's always going to work out the seven money tendencies as part of as part of the book and what we'll talk about in the event as well. But even just naming those, seeing those, putting yourself on a spectrum, which sounds clinical, but it's just true. It's this awakening and this awareness of like, oh, wow, OK, that is I value that part of money or maybe my spouse doesn't.

And maybe that's why we're budgeting. They get frustrated that I want to go out to eat more and have the experience of going out to eat where I would rather buy something. I like to buy things. And you can just kind of pinpoint this conversation. And like you said, especially, you could figure out why you don't like Dave Ramsey.

I should add, I should add a bonus chapter for this one on Henry Clowe can help you with that one. I love it. All right.

So go to Dave Ramsey Dotcom and sign up for fifteen hundred dollars for this one. I mean, you would you pay one hundred fifty bucks for any one of these people?

This livestream world is incredible. So know yourself. Know your money event, October the 28th.

In the meantime, if you want to take a free money quiz, type the word or text the word money quiz two thirty three seven, eight, nine. It'll do the same thing.

It'll start to help you get your hands around what you are how you come at this money thing. There's not really on most of these things are right or wrong.

The right or the wrong comes when you become a toxic version of one of them and you're holding everybody back or you're, you know, like if you're a spender and you just go spend like you're in Congress, that's a toxic version.

Right. And you can't outrun your stupidity, then show that, you know, that's me. That's how I started. And I thought, well, I got I got OK, I'm a spender. But I thought you had I thought you when I thought the check, the the receipt when you're going out of Costco to make sure you spend at least two hundred dollars, I thought it's federal law.

And so I did. I didn't know they were checking to see if you got the right stuff. I thought they were required to spend money when you went in there. So I had to fix that part of me.

And I enjoy my spending because it's with a plan and you too for that matter.

All that. Oh, yeah, sure thing. So Rachel Cruze, Dotcom and again, money quiz. Text that one word, a thirty three seven, eight, nine. No yourself. No your money and you can preorder the book. It comes out in January and of course we'll have the audio book, the e-book, the video lessons, all these things. One hundred fifty dollars worth of stuff that comes with a preorder as well. So you don't want to miss out on any of that.

Taylor is with us in Minneapolis. Hi, Tyler. Welcome to The Dave Ramsey Show. Hey, Dave.

Rachel, thanks so much for taking my call. I was going to go look every day. Thanks. How can we help? So I haven't heard you talk a lot about this subject, but my family has a lot of a lot of wealth. In it, and I'm doing pretty well myself, but I just wanted to get your take on what I should be doing for my retirement. I mean, I don't want to be like a trust fund baby, but want to have stuff for myself, good.

I think that's great, Taylor. How old are you? Yeah, I'm 20.

You're in school. No, I'm not actually, I have a couple business things that I'm doing cool. So what kind of money you make in? I make about thousand a year, and you're 20 years old. Understood. It's pretty incredible, I think. Well done. Yeah, yeah, and I just I bought a bond, sold some properties in the past since I turned 18 and I'm kind of I bought a house and I fixed it up and I'm going to stay here long term.

Before around the time, let's get right to it. You're an impressive young guy. What is your key question we can help you with right quick? So basically all said and done by parents of a worth about probably five million dollars. My grandparents probably three to four million. I'm not sure on that, but OK, I guess, how much should I be focusing more on saving for retirement or can I, you know, enjoy some more of my money that I'm making right now?

I think I would work the baby steps.

That's what I was going to say. I think the more independent you are emotionally and financially from that money, knowing that it probably will be handed down to you at some point, but walking through life, not even worrying about that, it gives you a sense of dignity. And there's an element of that I feel with you, like Winston and I, my husband, we were like, you know what?

No matter no matter what happens and nothing, we don't get handed down a penny of anything Winston or Rachel Cruise are still going to do really well, because we've been smart over a decade with our own money. And there's just something freeing and independent about that, that we have our own family unit and we're good. We are good. And anything on top of that that we have to manage later in life is a blessing and a responsibility. But there's there's something about the independent sailor that I would want for you, because I think it's really healthy and really good.

Yeah. Just walk baby steps as if you had no money coming. Run your life as if you had no money coming in. Be wise and you're you're way beyond your years already doing. And so great. Great job. Great job.

So thanks for being here and filling in for James Childs this week. Kelly Daniel, our associate producer and phone screener, Rachel Crutzen as our co-host. I'm 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. You can listen to Dave, Rachael, Chris, Chris Hogan for the rest of the Ramsey network anywhere with the Ramsey network app on your smartphone. Catch all of our full shows, browse by topic or send clips to your friends, head to the App Store and download the Ramsey network app today.

Hey, if you've got questions about retirement investing or 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. 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.

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.