Live from the headquarters of Ramsey Solutions, broadcasting from the car rental studios, it's the Dave Ramsey Show where is down? Has taken the place of the BMW as the status symbol shows.

I'm Dave Ramsey, your host and my co-host here on the air today, Paris Hilton Ramsey personality no, our two time number one best selling author, including the latest bestseller Every Day Millionaires. We're here to answer your questions about your life and your money.

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

Samantha is with us from Salt Lake City. Hey, Samantha, welcome to the show.

How can we help you? Hey, Chris. It's great to talk to you guys. You, too. Oh, my gosh. You guys are so awesome. First of all, you guys have helped me so much. I'm reading this book right now. Every everyday millionaire. I'm on baby steps, one I'm working on in the thousand dollars saved up. And I'm also going to be U.S.. My question is, I know that you guys keep that snowball from smallest to largest.

However, like, for example, if I have a little more money to pay from the last place I was that does that take I guess, does that take any sort of like kind of look for the word here, move it up in the baby and move it up in your debt snowball, actually.

Well, I mean. Right, right. What is your what is your situation with them?

Are they going to issue you tomorrow or have they said, oh, no, for now you can or you're paying them payments or what?

Yeah, I mean, I understand the payments right now, but I'm just asking because I have a lot of, like, old debt from medical bills and student loans and stuff like that. So I was just seeing how much I should throw at it instead of doing like small sourceforge instead, you know, stuff that's like more urgent to pay, not not by means of interest, per say, but just means of like, you know, paying paying people off before you pay off companies sort of thing.

Because I the people need it more than the credit card companies and the student loan companies and stuff like that. I do out and everything, but I'm just not sure, you know.

So how much of your total and how about a forty thousand dollars? And I right now I am doing with an average I don't have a sort of any sort of job right now because of covid and everything. So I make about, I would say six hundred dollars a week doing those two things. So I would say maybe 45. Forty forty five thousand a year. OK, what is your largest debt in student loans? It's like probably around fifteen thousand dollars in student loans.

Somewhere around there.

And other than student loans, 25000 get you out. Right. Mhm. Yeah. Yeah.

And Samantha, are you current where you're currently living right now.

I am. OK. All right.

How many deaths are you not paying payments on today. Well, I'm in the process, I just went and looked at that song, so I guess I haven't gotten to court.

How many, how many, how many deaths or six months or more since I've gotten any money. Oh, I would say most of them, I guess, because of her medical incident debt for so long.

So you're just you're in default on most of this. Yes. You got a payment plan with the landlord. So you're paying that the old landlord.

You got a lot of medicals that have just been sitting there six months, a year or two years.

Right? Right. OK, here's what we're going to do to debt. Snowball debt. Snowball number one is everything that you are paying payments on. Now, that snowball number two is everything that's in collections and in default that you're not paying anything on anyway.

Which probably includes the student loans right now, it does. OK, all right, so that, you know, debt snowball number one is the old landlord and anything else you're currently paying payments on, which doesn't sound like a bunch.

No, and we're going to list those smallest to largest, we're going to let the other set because they've not been getting any money anyway. So, Chris, let's not give them any money.

No, that's exactly right. And but when the time comes, Samantha, as I tell people, if you can't afford to pay, you can pay attention. Right. And so that means reaching out and communicating. But right now, you've got to focus on this active list. And I'm going to tell you the next step for you is going to be stability and income coming in, you know, whatever the food delivery stuff that you're doing. But you need to dust off your resume.

You got you've got an income problem. And that income problem is leading you to have these other issues. And so there's no more waiting on the job.

You need a job, you know, so setting up setting up the the things you're paying payments on, on a straight up debt snowball things you're not been paying, payments aren't just set them over the side.

They're not being it money. Anyway, we're on your way as fast as you can through that debt snowball. Then when you get to the ones that are in default, then you can list them off and you can attack those in whatever order you want. Smallest to largest, best. But if you've got someone that's an individual friend that you owe five hundred dollars to, that you want to put at the top of the list, that's fine. Right before you start dealing with the 15000 hours of student loans, it would be up there anyway.

Now, each one of those you're not going to call the whole bunch and start payments. You're just going to call. Right first one on the list and finish the deal up with them. Now, it could be that that's an old credit card. You can pay them in three years. They're going to be surprised to hear from you.

You owe them 5000 dollars. They'll probably take two thousand dollars a settlement in full. And so you save up to two thousand dollars.

You work a settlement in full lump sum payments on every one of those in the second list. No payment.

I know that you guys say you like to wait till the end of the month. You negotiate probably right back because that's the best time of the month, the last week to call them.

You can do that, but it doesn't matter. The big thing is, is that you build up a pile of cash that is a portion of what you owe and you offer them that and you settle that lump sum, you get it in writing and no electronic.

Thank you for bringing that up, but getting it in writing, if they won't put it in writing, it's not real. They're just fishing. And so if they'll put it in writing and send that to you now what you get ready to pay them, pay them with a certified check. You keep a copy of the check in your file and you keep moving down the list.

Yeah, good stuff. Well done. Open phones at triple eight eight two five five two two five. Let me tell you what is magical about Samantha.

For the first time maybe in her whole life, she is taking control of this, she's happening to all of this mass instead of all this mess happening to her.

We got old bad debts, old bad landlords, old bad, which means there's a pattern for years that this has been going on.

And I'm so proud of you, Samantha, to go. You know what? I'm not going to let stuff happen to me anymore. I'm going to start happening to stuff. Oh, Dr. Stephen Covey said in the book, The Seven Habits of Highly Effective People. The number one habit was highly effective.

People are proactive. They happen to things. Things don't happen to them.

Yeah, and you can hear it in her voice. She's she's got she's been taken in the information, but now she's starting to get confidence and that confidence, that's where the game starts to change. And here's what happened. Knock off a couple of those. You start to feel like not like a wet kitten, but like a lion coming out of the jungle. I mean, you get you get the roaring, you know? Yeah. This is the Dave Ramsey Show.

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Ramsey, personality number one, best selling author. My co-host today here on The Dave Ramsey Show. Open phones are eight a two five five two two five. That's triple eight eight to five five two two five.

Chloe is in Dallas, Texas. Hi, Chloe.

How are you? Hi. I'm doing great. How are you? Great. How can we help? So I have this problem where the company that I'm working for now, starting for the spring semester of my junior year college next semester, they're going to start paying six thousand dollars a year toward my education, which is great. But I have started looking into internships for the summer and there's so many like really big opportunities. And I've gotten some interviews for some of them.

But if I were to pursue those internships, I would probably have to quit my job that I'm at now. But I don't know if I even want to be at the job when I'm at now postgrad anyway. So I just don't know what is better in the long run.

What are you studying to do? I'm studying consumer experience management with a specialization in marketing. It's not like the other way around to me, OK, like a marketing with a specialization in consumer experience. But anyway, the.

All right, so the company you're working at doesn't do that.

No, they don't. What do you get paid? They're paying fourteen fifty an hour. And how many hours a week do you work? Tony. OK, and six thousand dollars a year. OK, and the internship pays what most of them around twenty to twenty five dollars an hour and you'll be working how many hours? Full time 40 until you get back to school. Yeah, they're usually about 12 weeks from what I've seen. Oh, and you lose the job?

I would yeah. I would have to quit my job to work. I mean, you lose the internship ends at the summer.

Oh, yes. Well, let's do a little math there, business student, so are you going to how are you going to make enough in the summer at twenty dollars and 40 hours to offset 14 fifty at 20 hours and 6000 dollars worth of tuition help? I think you are OK. Run the math, though. Yeah, definitely.

So look, let's look at let's look at like a 12 month period of time or actually it's more like a nine month period of time, OK, a 14, 50 at 20 hours. Yup. And 6000 or look at three months. Which is and you potentially are unemployed, we don't know, but you're potentially unemployed when September comes around, right? Yes.

However, you could go get a job in September comes around even if it's not back with his old company.

But if you're in your area, listen to internship doesn't mean squat. You're going to go get a job after college. And the internship may or may not help one or two, five percent, 10 percent of the equation. You're the secret sauce on getting the job, you know? You know, no, I've never hired someone here.

And I went, oh, you were an intern. Thank God. You know, that never came up in the interview. OK, it was more it's more like, oh, you're an intern, whatever, OK? And it's like maybe you picked up something. Maybe you might pay a lot of people coffee that summer.

Or maybe you actually learn something while you were interning. I don't know.

I couldn't get as an employer, it doesn't bring a lot of zazz right now.

Let me go a little bit more positive than Mr. Ramsey over here. I think you've got a great opportunity to to learn to make some connections. But like Dave said, once that's over, guess what? September, you're looking for another job, and that's OK. That's OK, too. And so but again, the mindset of why you're there as an intern, be very mindful, make some connections. Don't just show up and go through the motions, start to really look at this and understand this is your first step into this industry.

And so if you work the relationships right now, the people you're meeting, you're starting to get connected with people that they know. And that could pave the way for you.

Yeah, for the sake of our our listeners. Chloe, let me give you an example of what I'm talking about, OK?

Since Hogan's accusing me of not being positive, I'm positive I'm right.

OK, so the if you got nothing for the internship, which some internships pay this coming summer, but you got all the connections in the learning, I would tell you not to do it.

It's not worth that much.

Now, if you can make about the same in forty hours at twenty dollars versus fourteen fifty for twenty hours and six thousand and you get the connections and maybe some opportunities and maybe you learn something.

Well everything's positive. Take the internship. OK, because you know. But, but I've had people call here over the years and I've had, you know, young people that were friends of the family go, well, should I take this internship and make nothing versus I get to make, you know, thirty or forty bucks over here and I can actually make some money this summer. Now, you can make the money when you build your character and your work ethic.

And, you know, there's just very few things now.

There's a few jobs out there where you're actually are coping and you like an engineering position or something like that.

And you might you know, it's very likely you're actually going to end up working there. That's right. Now, that might be worth it. That's right.

But most of these internships are just, you know, the college student gets ripped off so they make a lot of coffee.

We were both right. We always are both right.

See, I like this challenge. That's right. It's all cuddly and everything.

Cody's in Columbus, Georgia. Hey, Cody, what's up?

Hey, Dave Eggers going great, man. How can we help? Oh, so my wife and I are on baby step to look.

Are you there? Thousand one hundred dollars.

You know, last thing I heard was baby step two in your phone wandered off. Let's start again. My wife and I baby step two and what, baby step two.

And we've paid our fifteen thousand one hundred so far. Yay. Good job. Yep. And we still have forty seven thousand seven hundred fifty seven dollars and forty four cents.

My question for you gentlemen, does it make sense to refinance our home at the moment? I think I know the answer, but I wanted to confirm with you.

All right. Well, tell us what you think the answer is going to be.

I think the answer is going to be don't refinance because you're taking money off the table. That's not going towards your student loan debt right now unless can you refinance the closing costs into the loan?

Yes. Then it doesn't take money off the table. OK, because it's because I'm going from a 30 year to a 15 year, that's not a right to vote so well, it's going to bump bump up our, oh, monthly principle.

You know, we're going to about your monthly payments going to increase by how much of 500 bucks. So we're going to go from 20 percent of our Take-Home Pay to 25 percent of our Take-Home Pay six thousand dollars a year.

And in the last year, you paid off how much? If 15 one and how perioperative, Tom? Christine, one since February. Yeah, since February, so last eight months than a month ago. All right.

And so you're on a 20000 alter your schedule and if you do this at lower by 6000, you'll be honest, 15000 are your schedule. For for the house, no, for your get out of debt plan. Oh, so now I get out of debt right, though. So I'm looking at I'm looking at your every dollar up here and it says we'll pay the we'll pay the debt off the student loan off by June 20, 22.

OK, if we're paying what we are right now. Yeah.

And if you lower that by 6000, it's going to add a little bit to it. Five hundred dollars a month, 6000 hours a year. And so.

So what we want to do, what's the interest rate on your current mortgage for.

And you can get one two point six five two point six.

OK, so one in the third and your balance is what, 300?

OK, so one is three grand. So 4500 bucks a year saved and you decrease your cash flow and stay in debt a little bit longer.

What your household income will save will save a lot on the interest on household income is one 20 take home.

OK, yeah, you do the refinancing, you do it, you do the review refinance. It slows down your get out of debt. But here's the weird thing. At the end of the story, your harp is showing you if everything goes exactly as planned, 100 percent of the time, it doesn't go as planned. That's right. And the more intense you are, the not going as planned means you get out of debt sooner. So I think I think this is going to work out in the end.

I know it's gonna work out in the end, but and I definitely would do it. I definitely would do it. Good question. Interesting discussion. This is The Dave Ramsey Show. Listen, there are some basic things that you should be doing to take care of your family, a roof over their head, food to eat, a car to get you from A to B and term life insurance, term life insurance is an immediate need no matter where you are in the baby steps, since your family is at no greater risk than when you're in debt.

The only place I send you for this is to Zander Insurance. They shop all the top insurance companies and they're committed to serving you. That's why I use them and have recommended them for over 20 years. Go to Zanda Dotcom are called 800 three, five, six, 42, 82.

Jonathan is with us in Poughkeepsie. Jonathan, welcome to The Dave Ramsey Show. Hi, Dave. Can you hear me? Absolutely. How can I help?

Thank you so much for taking my call. I just had a question for you. So I'm in a sticky situation. I was working on a job during the for the past couple of years during a pandemic. And I left that job in hopes of getting another job which had higher pay, more a lot of mobility and better benefits and so forth. And I was I didn't sign a contract for that job yet, but I was told that I was going to be I would have got approved for that job.

And I didn't break my contract to go to that job. So when the contract for the other job was over, I basically out of a job. So I'm working kind of minimum wage and I have a retirement plan for twenty for twelve thousand eight hundred dollars for the past couple of years. I was putting in like minimum. And my question is, should I take out some of my retirement plan and pay off on my credit card debt, my student loan debt and put something aside, or should I keep it in there and just kind of ride it out until I get the full time job?

All right, Mr. Jonathan, how much debt do you have, my friend?

Twelve, six, 6000 credit card. And I have 50, 100 student loan, over 12000.

And they are in there for one day. Yeah, yeah. And I also just to add, I also have ten thousand in savings that I saved from during the pandemic just in case I was going to be in a serious situation. But I, I don't want to spend too much of that because that's what I have, if that makes sense.

OK, and do you have any kind of income coming in right now as you're in this whole position?

Yes. So I'm working minimum wage for this fifteen an hour, OK, at least 30 hours a week. But I would be at least 450 growth opened up up to 40 hours, but I would be between 450 and 600.

So can you stay current on your bills with that? I can that I can, but, yeah, I just don't know, because I just thought about that. But just because if I were to take all the time and then I wouldn't because of anything that's way about that.

Well, I know Jonathan and trust me, Dave, and I've heard this, they removed the 10 percent penalty, but the Kahrizak does not caring about your future. And what that means is, is you're still going to be responsible for the income taxes on that within two years. So I would not advise you to pull money out of the 401k at all. If anything, I'm going to have you continue to be in conserve mode. But once you get some stable income coming in the first place, I want you to go into this 10000 that's sitting over here and saving somebody.

And I love your heart, your mindset. You want to attack the debt, just don't steal from your future to do it.

So here's here's the thing. You're in a temporary hold mode and your head is above water. The only time we tell people to pull out of retirement is to avoid bankruptcy or foreclosure, and you're not facing either. Yeah, really, at the end of the day, only reason you're pulling out of retirement here is to not use your 10000 dollars. Right. That's really unwise.

So if you want to hold the town and stay in conserve mode till you get reemployed at a better position, fine. But no, I would not cash out retirement if feels right on the short term.

But as a long term play, it's a really bad move. Plus, it's you're making the decision based on a temporary set of circumstances, not a permanent.

That's right. And Dave, I'm going to ask you something. I'm going to get you to attempt to explain to me what in the world Congress was thinking, OK?

I mean, you just said Congress and think I did. But but think help me understand, why would you get rid of the 10 percent penalty to crack the door on people raiding out their future? But you're still going to be obligated for the income tax side within two years.

I'm assuming this is a rhetorical question. All right. Well, I want to understand. Well, like, I could help you do that.

No. So, see, you have a different set of values. You actually think that they actually were trying to do something where I'm old. All they I've ever seen them do is try to look like they did something.

OK, that's all they want to do is they want to look like they did something right.

And this looks like you just are we were a big help. We screwed you. Well, you screwed up your whole retirement. But we're from Congress and we're here to help, which really ought to scare the bejesus out of you. When you hear that you ought to just melt and a little pile.

What a world. What a world when you hear that.

So, yeah, no, I you know, politicians are really all about appearances.

So, you know, where we we came forward. We were there for you during covid, but then they didn't read the 2300 page bill.

And so then when the implementation comes out, you've got the whole BP loan, BP loan debacle, you've got this debacle, you've got people not paying off their student loans who are able to go because they have a temporary reprieve on the interest rate.

Oh, Lord Jesus. Instead of using the reprieve to get out of debt, Reigo.

Oh, Congress wants us to not do anything. And so we're going to follow suit. And it's just the unintended consequences of screwing around in the economy with trillions and trillions of dollars of unpaid, unread documentation. It's it's astronomically stupid, but that's kind of like expected. So. All right. William is in Cincinnati. Hey, William, how are you?

Good. How are you today? Better than I deserve. How can I help? I worked many, many hours, like two jobs my entire career. I'm sixty five now and have no retirement plan, but I have about one point eight million right now. But part of that is in cash because I sold some property of it in cash. And I'm getting ready to sell a manufacturing business, I have we have an agreement of our after taxes, I'll get a one point one to one point two million in addition to this one point eight.

And I have no debt as a mortgage. I just wonder right now with coronavirus, it seems to me that companies are doing that. Well, I know the companies I know are struggling, but the market's going up crazy. So I've listened to you a lot. I know you like to be aggressive in the market. And that's we I've been. But just wondering, what's the current situation, what you would recommend. OK, well, to start with, let's just dial back here and say you got three million dollars, you got retirement, touch down.

Way to go, man. So how much of this money did you inherit? Are you a trust fund, baby, or do you earn all this? No, I don't get all 100 percent. Wow. America's wealthy.

All inherited their money. Bull crap. Here's William.

OK, way, way to go, man. So proud of you. So listen, here's the thing. You're 65 years old. You can screw this up royally and you'll still be OK. You got three million dollars.

So relax on the pressure on yourself to be a perfect investor and perfectly anticipate you can put it all in CDs, which I would consider screwing up royally. And you still can probably make it until you die with three million dollars, can't you?

Yes. OK, so we know we can do that now, everything from there's gravy on a biscuit and you've been pretty good about getting gravy on your best behavior. You've done a good job. So I'm 60. I'm right behind you. I have 100 percent of my wealth invested in real estate that is paid for zero debt and in growth stock mutual funds across the four types that I teach other people to do.

I actually do what I teach people to do. I know it's a novel idea, but I actually do it.

And that's where 100 percent of my wealth is, other than the fact that I own Ramsey solutions.

But but the aside from that, the the you know, the investment wealth that I have is in real estate and in mutual funds. I have not pulled a dime of it out during covid. I have not put extra enduring covid I am in the midst of developing some real estate, are not the building of the building next door and crap like that. So I'm dumping more money there than I am in the stock market. But it's not got anything to with covid.

It's got to do. I got a concrete hole over here, a second cash.

So but the you know, I'm saying so it's just I think you're fine, you got some good mutual funds to invest or if you want to do another business. I know the business is running a little while. Apparently you're good at that. But William, do not say you don't have a retirement plan, my friend. You got to plan a safety net and four parachutes. You're good to go, buddy. Exactly. Yeah. Retirement plan does not have to be enough for one day.

That's right. Hey, huge freaking pile of money is known as a retirement plan. You did so good for other. This is the Dave Ramsey Show. Ramsey personality Chris Hogan is my co-host today here on the air open comes for you at eight eight two five five two two five. Do you remember life before you got on the plane? Money fights, sleepless nights, hiding the fact that you were totally out of control. Well, thankfully for you, that's in the past now.

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So lots of virtual few classes and you can be a virtual coordinator.

And with a free coordinator guide, you'll have everything you need to do to lead with confidence. You do not have to be an expert. You can help people change their family tree.

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Jennifer is in Houston, Texas. Hi, Jennifer. Your question for me?

Hi, how are you? Right. I have a question. So I my my father just passed away and I inherited roughly Seasonale that he had put aside like a half a million in debt and Access's, you know, in property and everything else and probably another three hundred and something. So my question is, is that I don't know what to do, you know, already, because I know I needed a road. It it's going to be taxed.

And with all the credit that he had that he bought me, what to do with that?

OK, the seeds don't have any taxes. The real estate does not have any taxes, OK? There's no taxes on inherited property in an estate. Sounds like he had the only thing you're going to have taxes on. You will have taxes on the inherited IRA. When you pull it out, you are not required to pull it all out at once. The new laws that were passed in January require you pull it out over ten years. Yep, the tenure drain, it's called.

And each when you pull it out, there are no taxes on it. But there I mean, no penalties on it. But you will be taxed at your tax rate as you pull it out. How much of that 500 is CDs and how much of it's IRA?

In cities, it's majority city, so I would say probably about 400, you know, any of taxation on 100000 dollars over 10 years of time.

OK, on that, IRA, no big deal. No big deal. OK, and just when you pull money, you know, each year you're going to be required to pull a tenth of it out.

So let's say it's 10000, 100000 dollars over 10 years, 10000 hours a year. Right. And so you're going to set aside a couple of thousand bucks for taxes that year on that 10000 dollars. And then you're going to do something with that 10000. You can reinvest it into something else or do whatever you're doing with your wealth, building your heating or whatever else Jennifer would baby step or you own personally right now.

Well, I'm OCD, so I you know, my Crake, I don't have like ten thousand dollars in debt. I don't have a car note. I don't have a house note either. All that's paid for. But one thing I don't with my current job, I don't have a for one day. OK, all right. And then secondly, he, he left the house where he actually did a transfer of a beneficiary. I don't know if you saw me with that.

So I wasn't required to like to go through the courts or anything like that. It automatically went into my name. So the house is up north in Chicago. So I'm I'm kind of debating do I sell it or do I just ran it.

But as for any reason, is there any reason to keep it emotionally? No, no, not really. So sell it and you would never buy a rental property is 300 grand in Chicago if you lived in Houston. Right, right. You would do other things now when you say when you say OKd, are you being serious or are you just mean you're high detail?

I'm very seriously so I'm really paranoid about that and buying out some of my. But I'm not OCD.

I'm OCD about that. And that's a joke. But that's not a clinical diagnosis that Dave Ramsey has got. Obsessive compulsive disorder. Are you? I mean, what are you saying here?

Well, I mean, I just don't like it. OK. OK, good. It's like I'm with you.

I just I don't want to give you a different giving wrong advice here because. But yeah. So you're just you're you're very conservative and you're very detail oriented. Congratulations. And so you are worthy of managing your dad's inheritance. Very well. Congratulations. That's what you're going to honor his memory with your behaviors.

Yeah, right. Right, right. You just want to be Jennifer. You want to be extremely detailed and very careful with what you do. You've got an opportunity for this inheritance to be a blessing or it can become more of a curse for you, bringing the obligation that it's bringing on. If you don't take the time to really think through and be clear on what it is you're doing. So let's just clarify. You've got a to do list here of taking out a tenth of this each year right out of the IRA.

The CDs are OK being able to look and understand when those mature and you've got them getting this house on the market, reach out to a real estate EOP so you can go ahead and get some guidance on it. But I want you to start to think through. You may want to even get connected with one of our financial coaches. Get over to Dave Ramsey Dotcom. I tell you what I'm going to do. I'm going to gift you three sessions with a coach so you can have a game plan moving forward, knowing the timing of what you're going to do and when to do it.

And now you get a chance to honor your dad's memory.

That's very cool. Yeah, because the thing is here, the first thing you get when you have a situation like this is the money comes at you and you go, what am I going to do with it as it comes at me? And then you go, OK, what's going to be the ten year result of this? And so you liquidate the house in Chicago, the city starting get invested. Well, we roll the old IRA over into some good mutual funds and we begin the ten year drawing down on it.

Right. And so you just develop a game plan and we're OK. Yes, it's a blessing.

And yes, it's in these forms now. But what form does this money need to take to get me where I want to be ten years from now? Which continues the legacy, by the way, she probably ends up being a paid for home, I hope, and upgrade.

Yeah. On our home and a car with cash. Yeah. And continues to work and to be very mindful and and then procreated like most of this money's not there.

That's right. And move on up and you'll really end up in a really, really sweet position.

Yeah. Jennifer, thank you for reaching out. Absolutely. Well done.

Open phones at eight eight two five five two two five. Abagail is in Manchester or Massachusetts. I'm sorry, Abigail. I'm real short on time.

Ask a question quick. Hi, Dave. Can you hear me? Yes, OK, well, how are you today? Great. Well, my husband and I are on baby steps for the summer, and in the months leading up to the wedding, we saved up 10000 in our emergency fund and we saved up 40000 that we are going to use as a down payment on the house. Shortly after we were married, my husband got accepted into graduate school part time.

It's going to be paid altogether. It's going to cost 100000. His company is going to pay 75000 of it. We're going to pay 40000 of that out of our pocket over the next four years. And so what I'm wondering is, would we be better off to put a smaller down payment on the house out of that 40000 and just kind of hoard about 20 percent of it put towards my husband's graduate school? Or would we be better off to not buy the house at all until he's done with graduate school so that we make sure no matter what happens, we have the cash to go to the school.

Got it.

How long you make sure you have the cash to get him through grad school? More important than two years. A house. What's he studying?

He's getting his MBA, OK. And right now he works in the pharmaceutical industry and he makes about 52 a year.

OK, all right. Will you move after he finishes? Probably not, because he'll need to stay with his company for a few years because they're paying for the graduate school. So he would have to pay them back if we left.

Well, the further you get through this, the less risk there is that you're going to end up needing the cash. And so maybe we don't say no house until after grad school. Maybe we say no house for year one. And let's see where we are. If everything's feeling really strong after year one, you got one year left and you're still sitting on the 40, then you probably could go ahead on the house and you're going to be fine.

Yeah.

Don't let that money burn a hole in your pocket.

But I love her mindset of going to school with cash, and that's the only way to go.

It is. It really is. Don't do it otherwise. No, don't do it. You get yourself into a mess. That puts us our The Dave Ramsey Show in the books. Chris, thanks for hanging out. Thank you for having me, sir. Number one, bestselling author Chris Hogan sitting beside me.

This is the Dave Ramsey. And this is James Childs, producer of The Dave Ramsey Show.

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