Live from the headquarters of Ramsey Solutions, broadcasting from the Dolma Car Rental Studios. It's the Dave Ramsey Show where DataStore Cash is king and a paid off home mortgage has taken the place of the BMW as the status symbol of choice. I am Dave Ramsey, your host, my co-host. Today on the air, Remzi personality number one.
Best selling author Anthony O'Neal is with me.
We're here to answer your questions about your life and your money.
Open phones, a triple eight eight two five five two two five.
Rochester, New York. Margaret is going to start us off. Anthony Hey, Margaret, how are you? Hi, I'm good. How are you two? Better than we deserve. How can we help? Thank you so much for taking my call. I have a quick question about supply chain degrees. You always seem excited when someone says that they're major. You expand a little bit on them. And what kind of characteristics would be a good candidate for that degree?
OK, we used to in the old days call it logistics. A logistics degree. But it has to do with, you know, everything from transportation to purchasing, like, for instance, I've got a couple of Supply-Chain guys on my team and so they'll they'll source help us source the vendor and negotiate with the vendor to produce like the Rachel Kroos wallet.
OK, and then we've got to get it produced.
We got to get it delivered at a price point that we can sell it at and it's got to be here on time. And so it involves getting it from another country.
In that case, I think they're being made in India or something this time, if I remember. Right.
And so, you know, negotiating with that vendor and getting to know that vendor, making sure they're behaving, you know, and so it's almost as if they're the the producer of a product and the delivering of a product.
Does that make sense? Yes. And the reason I'm excited is young people are coming out of school with a four year degree in supply chain and they're landing jobs at 80 grand a year.
Which to me blows my mind, I mean, that just that's a pretty cool four year degree starting salary.
Yes, I agree. OK, that's what I wanted to know, you guys have a great day. Thank you, Margaret. We appreciate you listening. That's pretty cool. I mean, there's a lot of degrees you come out and you're making. I mean, you get a marketing degree. Yeah. If you come out with my 45 or 50 at your entry level, that's not unusual at all.
It's really not unusual.
But I like that. I mean, I think that's a degree that would definitely grow with you and even expand with you.
Yeah. I mean, like, I remember the I think the first time I took note of it was when my son Daniel, who's 28 or so, he's been at school for five years. When he was coming out, one of his buddies that was one of his roommates in the school that was a family friend, was a young man that we knew. He comes out and he's making think 17000.
And I went, What? You're kidding. And then I look up a couple of years later and he's making like a couple bills. You make a couple hundred. Yeah. And he's not even 30 years old.
So it's a pretty stinking, lucrative field to be in. And it's not a feel for everyone.
But, you know, when you're talking about student loans or you're talking about talking to college students, we're always telling, you know, get a degree where you can get a job because of the degree and not just a job, but a it's a career field that will grow with you financially is not just something. When you get it, you're at 40000 dollars for the rest of your life, getting to get a good degree, get a good job that you can earn your way up and get some more money.
Yeah, I mean, to me, you know, I understand the calling to social work, but if you go to work for the state. Yeah.
As a social worker, you're making 35 or 40 grand. That's it. And you got a master's degree.
And you can make 35 or 40 grand with a high school diploma. Yes, and in almost every case, you make a lot more than that with a high school diploma. If you get in there, I feel a lot of things you don't. College is not required for everyone.
But I'm always just encouraging parents particularly to not be a dream killer.
But just be thoughtful about what you're going to spend this money to put tools in your belt of knowledge in a certain area. Is it going to lead you to something where you can make a freaking living?
If my son is going to say, Dad, we going to pay 100 thousand dollars for my education, I'm like, OK, what what are you getting from that? Exactly.
So a hundred thousand dollars with a 35000 or 40000 a year return. I'm not a huge fan of that. But I agree with you, Dave. If you feel as if you've been called and that's what you have to do, go that route. But for me and for my house, if we're going to spend that much money, I want your salary to eventually at least be 100000 dollars or a year minimum down the road once you work your way there.
I want to have I want to have an upside to this and I want to have a good starting position. Yes. You know as well. And so but you don't pick something you hate. No. Pick something you don't want to do with your life. It's not being a dream killer. But sometimes if you do your dream the wrong way, it's known as a nightmare. Yeah, absolutely. Absolutely. Good question, Margaret.
Very good. Matt is with us. Matt is in Danbury, Connecticut. Hi, Matt.
Welcome to The Dave Ramsey Show. Thanks for taking my call, Dave, sure. What's up? So a little background, I'm 34, single, no debt, and I've been able to save around 30000 thousand dollars in cash. Now, I know that I should probably move that into my 401k, but psychologically, I'm just having a problem taking that money from my checking account and putting it into my. And also, I know you're not supposed to do this and measure yourself against other people.
I'm just I don't feel confident in my financial situation currently. I know it probably doesn't make any sense, but that's where I'm at. Why, Matt?
I mean, for one, let me help you with this. You can't take your 30000 dollars and put that into a 401k for one K is going to be fine. Yeah, well, you can't take none of it. You can't put into a 401k that has to go through your job, do your paycheck. Now, you can't put that into a Roth IRA, but that's that. We'll talk about that a little bit later on. But let me ask you this question.
Why why are you having a problem investing into your future? I don't know, it's it's like a psychological issue where I just have that cash available to me if I need it and I'm just having a problem moving not just cash into something where I can't touch it if I needed it.
Do you not have the psychological issue that you're not saving for your future? You're two years younger than me. Doesn't that does it scare you that I'm not doing anything to protect my 50, 60, 70 year old self? I guess it should, right? Yeah, so I get you on the fact that, like, hey, I have 30000 dollars, I'm scared to move it. OK, cool.
Here's the thing. You got to move some of it because we want you to keep at least six months into three to six months into your emergency fund. But at the same time, I want you to go on ahead and to get some type of investment in your future because you're 56 year old. Self would say, man, you weren't thinking about me back then. You was only thinking about yourself.
I hear you. So what's your household income? By the end of this year, I'll probably end up making around 80, OK?
And so what do you think, three to six months of expenses as your emergency fund should be?
Probably about 12000. Yeah, let's make it 20. Yeah, OK. And just in just fund your Roth IRA and let's get started after that. Then putting 15 percent of your income away into your Roth IRA and whatever your 401k at work and those kinds of things, like we talk about baby step four is where you should be. But setting aside that gives you that that comfort. You got an extra big emergency fund. That way you make an 80.
That's a fourth of your income. That's not bad. And then, you know, let's get a Roth IRA open. You can drop that 6000 in there. And I think you think about it and sit with your smart Mr. Pro and they'll help you get started with all that you can walk before you run. Hey, business owners and anyone who has to talk with customers often listen up, you are the backbone of this freaking economy. And just by staying open to serve your community, you're providing hope to your customers.
That's why my friends at podium want to do something special for you. They're offering you the opportunity to text your customer base for free. So sign up at Podium Dotcom now and join our crusade to communicate, connect and spread hope. That's podium dot com. Anthony O'Neal Ramsey personality is my co-host today. You're on the air, open phones, a triple eight eight two five five two two five. Christina is with us in New York. Hi, Christine.
Welcome to The Dave Ramsey Show. How can we help? Hi.
So excited by today. Thank you. So just a little bit of a background. I recently graduated from college while I was in college for the last year. I started an online business and after graduation I just decided to run with it and so on. And the last three months it completely took off. And it's overwhelming and amazing, but few questions. So I have yet and I was wondering if I should pay it all off because it scares me because potentially next month I could have no income or my family.
Besides, my husband thinks I should get like a real job and I just like to spend money that they also don't know how much I'm making. So hopefully that was simply a question that you said your husband.
Yes, you're right, your husband thinks you should get a real job and he doesn't know how much you're making. Is that what you said? So much? Sorry, no, my family doesn't know how much my making my husband thinks I should continue with my business. How can I should?
Well, your family doesn't get a vote. Yeah. Yeah, they don't get a vote, they just are loving people in the distance. Yeah, they just wave and smile. That's all they get to do. So your husband and you make the decision on this.
How much debt have you got? We have got seventeen thousand of them three months to the fighting right now, we have thirty thousand in a he thought a machine for his business and I have thirteen thousand weapons to go on.
So. Forty three thousand plus years. Yes. And how much money are you making? Last month, I made twenty thousand two hundred sixty seven thousand sixty seven thousand. Way to go. Let's go. Yeah, pay off the debt. Why haven't you already paid it off?
Right. Because it's scary, because next time I know, I feel like I could just all of a sudden, you know, it's your own business so I could have no income next month. Could it could.
But it doubled last month. So is your husband working right now?
Yeah, yep, OK, what does he make a year? He also owns his online business, so I want to say this, you're already seeing me 30000. OK. Yeah. So, Chris, I cut the check, OK? This is ridiculous. Hang up the phone. What makes you think it's going to go away in one month?
What's the probability of that being an actual thing other than just some dark cloud hanging over your head?
I mean, the I don't hear anything that you didn't tell me anything that makes me think there's any probability that your income just dies suddenly.
Yeah, you sound like my husband.
Well, it's not logical. Yeah.
If it is a logical reason that you haven't told me that you think it might disappear, tell me the logical reason. What is your product, I shall I sell educational tools for nursing students and I think nursing school starting next year. And so I guess I'm nervous they're going to start school and stop buying. Stop by, no, we see a decline in sales, yes, but at the same time, you know, reminds me, Dave, of our education solutions here, like you're not going to do nothing.
Yeah, you're going to make something. Yeah. And so, yeah, pay off the debt. Just pay it off. You're doing your.
Yeah, I don't know. I have. You may be in a seasonal business. That is logical. Yes. OK, it could be seasonal. And so there might be that might have been the hottest month ever this month when you made 67.
But but pass that and you're always going to have something coming in. It's not going it shouldn't go to zero because there's always going to be somebody at some stage of nursing in this, even though school has, quote, started back, unquote.
But now congratulations. I'm so excited for you calling it.
But entrepreneurship, Dave. It is it is like a roller coaster. Now, you're going to have good months. You're going to have so much going to have real good. Must have Lomis that's expected, you know.
And so, I mean, but if you make that kind of money and you only have forty three thousand hours and that you knock it out and then it helps you stabilize, you know, passed from I mean, if you do have a down month, you don't have any debt.
Yes. So it gives you stability in that sense. Yeah. Way to go. Excellent. J. PS and Dallas.
Hey JP, welcome to the Dave Ramsey Show. Hey, Dave, hey into me, thank you for taking my call. Yeah, come help. So I've been very fortunate over the last couple of years and real estate and over the past year, I've been able to make about two hundred thousand dollars payments towards the principal and my mortgage. And we started the mortgage about three years ago. And this is a topic that I haven't really heard discussed a lot.
But I know I just feel like it's something that would be super helpful in trying to get Dave your thoughts on it if I need you to. But the amount of interest that we have been able to save by making those payments early, I was just talking to the bank. And, you know, when they give you an amortization schedule, they show you kind of how much interest you pay at the beginning of the note versus how much you pay at the end of the note.
And I was blown away. Like already we've been able to save almost two hundred and twenty thousand dollars in interest because we've made those payments towards principle. Sure. Early, early in the loan versus late in the loan. Just want to get your thoughts on that and maybe why that's do you think everybody knows that and how important that is versus trying to pay it off near the end of the note where they taught us that or they told us that you would pay very little of your interest off, that you kind of towards the end of your term.
So just want to get your thoughts on that. Well, there's no there's no magic to it, I mean, it's if you have an outstanding balance, the interest is charged on the outstanding balance. When you reduce the outstanding balance, you get charged less interest. That's how it works.
And it's calculated like simple interest is how it's calculated. It's not technically simple interest, but it works mathematically exactly the same way. And so I think the misnomer that's out there that people believe sometimes is that they think because if you look at an ATM schedule at the beginning, you're like you're pointing out, JP, if you look at an ATM schedule, you see that the vast majority of your first payment goes to interest and. Right. And, you know, of course, your last payment, the vast majority goes to principal, but that is not.
And so then they start to think, oh, I've already paid all the interest. I might as well keep the loan. Well, you're not prepaying any interest on a mortgage.
It's all being charged on what is outstanding that month. And so what you're experiencing when you do the principal reduction is you're sliding forward in the memorisation schedule.
So instead of this being payment number 10, because you reduce the debt, you reduce the debt by 10000 dollars, it's more like payment number 29.
And so more of your payment is going to principal than it would have in you slide forward as causes calculated based on the outstanding balance. And so, yeah, I think that's what people don't understand sometimes, like I always hear. Well, I've already paid all the interest. I might as well keep the mortgage. No, it's not how it works.
So you've you've honed in on a JP correctly. And the point is, the faster you pay off the mortgage, the less interest you pay, the faster you pay off any of the less interest you pay. Right. It's blowing my mind and I'm thinking, I mean, this is really as good as any kind of mutual fund or stock that you could possibly be involved in if you can do it early, because it's amazing how many of those interest payments, large interest payments, because it's the beginning of the note that you get to avoid.
So it seems like even though my interest rates for four and a quarter, it seems like I'm I'm able to say you're not all of those and you're not you're only saving four and a quarter.
Yeah. It's only four and a quarter. That's all you're saving. And again, it's because your your interest is calculated at four and a quarter on the outstanding balance.
It's not there's no magic pill to this.
It's not like, you know, like you say like the big chunk on the front or something. That's not correct. And so it's not better than a mutual fund or mutual funds paying 10, 12, 15, whatever it's paying. And that's a lot more than four and a quarter.
But but you do want to clear the mortgage debt as soon as possible, like you want to clear any debt as soon as possible, because the interest on my mortgage is zero because I don't have one.
So that's that's advantageous right there.
Do and that's what you want to work towards a lovey dovey, like you said that in there. This is the Dave Ramsey Show.
I keep hearing stories from people on my team telling me how much they love honey, one of my developers, Brandon, told me he uses it all the time. The browser extension I've been telling you to download always tells him if he has the best deal on Amazon and he gets the e-mails every time there's a price drop. He said he doesn't even know how much it saved him, but it's more than he paid for it, which is free. So listen to Papa Dave.
Download honey for free. Join honey dot com slash Dave.
Anthony O'Neal Ramsey, personality number one, best selling author, is my co-host today here on the air. This is the Dave Ramsey Show where we talk about your life and your money. It's a free call at eight eight two five five two two five. That's triple eight eight two five five two two five.
Corey is in Jackson, Mississippi. Hi, Corey. Welcome to The Dave Ramsey Show. Hey, thank you for taking my call, and I'm over here, heart throb and excited and I'm ready to go. So. My question is, is I will be graduating college this December 20, 20 and I'll be graduating debt free and I would just, I guess, like, you know, be pointed in the direction of what's next, what to be prepared for financially.
What's your degree in? Mechanical engineering. All right, well done. Yeah, well done, well done. Let me ask this question, Corey. How much money do you have set up right now? Right now. And just like a bank account, this time, my savings to get through school, I have just a little over 10 grand. OK, I have I want to say it's 2000 in an hour. I started OK, then I have about 4000 total.
That's in stocks, man. All right.
All right. And are you glad you graduated with no debt, correct? No. No. How'd you do that? Yes.
Well, I started off in junior college, and while I was going through there, I searched for every possible scholarship or grants that I could find to help get me to the university. Wow. Wow.
You went the route that a lot of people say is impossible to do. So you went you went to unattractive route, but now you're graduating very attractively. No debt, a little bit of money in a savings account. And I'm proud of you for that. So here's here's what I'm going to recommend you do right now. You're graduating in a interesting season. So the very first thing I want you to focus on is control the things and focus on the things you can control so you can control what you can't control and don't worry about the things you can't control.
All right. That's what I want you to worry about. You can't control how the world's responding to covid. You can respond how you how you're responding to everything right now. So make sure your resume is updated. I'm going to recommend you go to can't call me dot com and download his resume builder going ahead and get that resume polished and present this into every field as possible.
Have you landed a job yet?
So I have a an offer that was with a place that I interned with and I haven't completely accepted it yet because, y'know, I enjoyed that job. It wasn't what I truly wanted to do in the school. But it's on a large career fair. It'll be this semester. And then that's kind of what I plan to go and really look at in the company I interned for. They were they were OK with that. They like that. They said, hey, just let us know, you know, comes time for graduation, what you want to do.
Yeah, I like that too.
I mean, it's good, but a key thing when you graduate man land you a good job and avoid debt. Do not touch nothing.
I think you're on that path. Right.
So what you've done so far, you're going to extend past graduation. Here's what you've done. You've been very, very intentional.
Nothing is accidentally happened in your world, you've set out with a game plan, with a goal, and you executed on it, and that's all you want to keep doing. It's pretty simple. What are you going to do with money? You're going to be very intentional. And, of course, you know, we teach the baby steps. We're going to walk you right up the baby steps, the shortest path to wealth, and you're going to start out with no baby step two.
And so you may have some furniture to purchase, a car upgrade or something like that that you need to save up and do as soon as you've gotten your emergency fund in place. And then then you may want to start your retirement and those kinds of things.
You may want to start think about saving towards a house. Yeah, but dude, you have been very systematic, very process driven, which is not really surprising for mechanical engineer, maybe.
OK, but but but it is very unusual that you're you're wise beyond your years, how you've set yourself up.
And not only was he intentionally, but he was also he showed self-discipline throughout the whole process.
And that's going to be something very key going into, you know, adult life on his own.
So we're going to give you a graduation present. We want you to go through Ramsey plus a one year membership, and that's going to set you up for financial peace university, going to set you up with every dollar sink, set you up with a baby step tracker, and it will show you exactly what to do with money. Yeah, it's the class that everyone should have been made to take back in high school, but we weren't.
And so we're going to show you exactly how this works and exactly step by step what to do. And we're going to pay for it and give it to you as a graduation present. So hang on, Cleo, pick up.
We'll get you signed up for a year on Remzi Plus and is with us and is in San Jose, California.
Hi, Anne. How are you? Hi, Mr. Ramsey, thanks for taking my call. Sure. What's up? So I'm coming in school pursuing a certificate in medical testing. The thing is, it doesn't pay a whole lot of money over the course of a long time. And I'm wondering if I should go back to school to complete my bachelor's degree while I'm working full time. What do you want to do?
Something administrative, like maybe Health Services Administration or H.R. Y.
It's just more of my fields. I do have some limitations with my condition, so I just wanted something kind of that I know I can manage.
What kind of a condition do you have? I have paranoid schizophrenia. OK? And you think I'm being treated? Yeah. The reason why I stopped going to school was because I had a psychotic episode, so I just had to stop. Yeah. So it kind of made things difficult. Sure. Sure. OK, but are you are you seeing a therapist regularly? Yeah, I also take medications regularly. It just took a little bit of time to find one that worked with my.
Yeah. My body.
Yeah, it does its job. That's why they call it practicing medicine, I think. Yeah, it's difficult.
But but the good news is you're kind of on an upswing right now. Right. Yeah, OK, then I guess it goes back to, you know, you don't want to do something to put yourself in an environment where you have problems with this, but otherwise you don't have a ton of limitations as long as we're, you know, under control and on medication and things are heading in the right direction. So it's just a matter of how much energy you have and what and what and what environmental limitations.
You want to not have some kind of another episode. Right. You know, because I want to work in the medical field, I just don't want to work directly with, like, you know, injecting people and giving IV's and doing, like, the emergency room stuff. But I was thinking more Administrators'.
OK, I got you. I make sense. All right. Well, I don't know that you need a bachelor's to do administrative work. It depends on what you're wanting to do.
If you're wanting to do like a hospital administrator, then yeah, you probably do need a bachelor's, may need a masters at some point to move all the way into a senior role like that in the medical field. It's not unusual, but because you're working with doctors all day long.
So but I think what you need to do is get real clear, as Ken Coleman says, on exactly what you're targeting and over what period of time you're targeting it. And then that tells you what what classes are going to be required, what degrees are going to be required.
And then, as he says, get clear, then get qualified, right?
And so it's a little bit squishy in talking to you of exactly where you want to go. And then you can figure out exactly what's required and then you can figure out how long it's going to take you to get those requirements met. Right? Yeah.
And I love how you refer to practical Dave, and I want to give you something more. So on the personal side, I want you to speak what you seek. And so, you know, that's what you want to do. So stop saying, hey, I have conditions. I have this. Well, you understand that you're doing a proper thing. You should take your medicine and you're seeing your therapist on a regular basis. But stop speaking negative.
OK, you know where you are. Say, you know what? I'm going to do this. I'm going to do that. I will get into the medical field as an assistant and go around those channels. Why are you still doing the things you have to do medically wise that's important for her so she can't get to the practical side like you gave her. You can do anything you can and she will speak what you seek until you see what you smoke.
Oh, that's a lot preacher line, right? Hey, Dave, I work. That's not my line, but I love it. This is the Dave Ramsey Show. Anthony O'Neal Ramsey personality is my co-host today here on The Dave Ramsey Show. If you're a teen or the parent of a teen. I'm pumped to tell you about a self study course that the team and Anthony launched called Foundations and College Prep. It's an online course that shows young adults that graduating with a debt free degree is possible.
It's perfect for 14 to 18 year olds.
And Anthony debunks the myth that to go to college, you have to have student loans. And he shows you step by step process on how to start out.
Right. Right now, we've got the course of a very special price, only 29, 99.
It's usually eighty nine. This is a stay at home deal.
It is. And it's a great deal. So because I'm in it. Well, it's all about you. No, no, no, no, no, I see. I spent a lot of time with the team here, Dave, just really, really fine tuning in, not just making the educational but entertaining as well. So the this young person will actually enjoy it. They will laugh, but they will walk away informed and educated.
Anthony O'Neil, dot com slash store. And you can get the new foundations and college prep course for 14 to 18 year olds. Only twenty nine.
And of course, our team has created a one stop shop for everything homebuyers need to know. A lot of people buying houses right now. Yeah.
And if you're going to do it correctly, you should go to Dave Ramsey, dot com slash home buying, get the answers you need to make smart decisions. We have this, you know, research that's trending in home prices.
We talk to reputable real estate people in your area. We're going to walk you through this whole thing. Go to Dave Ramsey Dotcom home buying, and we can help you walk through the whole process right now in a crazy, crazy real estate world.
Ainsley's with us in Athens, Georgia. Hi, Angela. How are you?
Hey, Dave. Thank you for taking my call. Sure. What's up?
Well, I just actually finished reading Total Money Makeover about an hour ago and threw out the book. One thing that kept speaking to me was that we paid are we finance and are more car than we should have. So I have a twenty 20 Suburban that we got back in April and we owe sixty four thousand dollars on it. So throughout the book, that was one thing that just kept popping and I said, oh, we got to get rid of this car.
So this past weekend we went to a couple of different dealerships. One said, I don't want your car and the other one wanted me to take a ten thousand dollar loss in order for them to take my my car. So I'm at a loss as to what to do in order to take this big chunk out of our debt. What do you owe on it? 64000 currently.
OK, and what's the what's the market value? If you looked it up on KBB, they told me about fifty six with with it being in excellent condition since we've only had it for a few months.
Is that in or is that private sale. Yeah. A nice trade in. Yeah.
That means they're going to make the money on it. Right. OK, no.
If you sell this car to an individual you can probably get out of it.
Yeah OK. But it's not going to but but that's a hard that's an expensive car to sell to an individual. Yep. Very difficult car to sell 64000 dollar car loan. Yeah.
We have four kids. We need we need camporee. I know, I know. We should have read Total Money Make a few months ago, but I just just discovered it and and now we're here and you know, we, we can't. What is your household income. We bring home about ninety five hundred a month so.
Yeah, you need to sell it. Yeah. You don't have to panic and you don't have to give it away, but you do need to survive. OK, it was an unreasonable purchase in your situation and that's being kind of it. I get that.
And so, but I mean it may take you a while.
You're either going to take a ten thousand or loss by selling it to a dealer at wholesale or you're going to take a while to sell it and, you know, get the use of it during that time.
And how much other debt have you guys got?
Not counting your home total. It's one sixty four. What's the other hundred? We owe thirty two hundred or thirty two thousand on my husband's truck. We have just over fifty five thousand in student loans. And then a few small credit cards. So almost 100000 dollars in car payments. Yes. Wow. He owe more on their cars than you make. Yeah.
But here's here's the thing, actually, Ainslee, you just joined the family. So welcome to the family.
Thank you. I'm just crying with you. Yeah, we both are. I know.
Here's what I would do if I was in your situation. I will put that car and what I would try and do, because every time you drive that car, the value is going to go down. If you are going to sell that car, which we are suggesting that you do, I would try and figure out how you all can keep the mouths low and that. And then I would say, you know what, husband? We need to take a five thousand minimum loss.
We may have to take the ten thousand and give yourself a time frame. So if the car is not so by this date, you just going to take the loss one month. Yeah, give it a month.
Put it up for sale if you can move it for a month after that, you need to take the loss you've got is such a big mess. You got to move on this. What's his truck worth?
I think they said 30 years about what he owes on it. Yeah, I put it up for sale to. Yeah, OK. Yeah.
You guys have a car mess, you know, about two five thousand dollar cars and get back to reality and and they make you make five thousand cars that'll carry four kids.
It's just a big van. OK, just get you big old cheap van and buckle them in and go.
You're going to, you're going to feel like you've lost 300 pounds. I mean you're just you're buying the car payments are two thousand dollars a month.
It really is not. Dave, you know, the you know the listeners out there saying Dave just told them to sell both their cars and go get 5000 dollar cars.
So what's wrong with that? And nothing at all good. But I would ask you this kind of people are thinking, well, Dave, at what point can I get a nice car when you can pay cash and when the total of your vehicles equals less than half your annual income?
They have one car.
Yeah. That both of their cars are all once over half their annual income.
One's almost half their annual income. Right.
And so, you know, his truck is out of line. Yeah. You know, if you gonna have two cars and you make ninety two cars equaling 45, that's a couple of twenty thousand cars that you pay cash for. Neither one of these cars are that. Yeah.
And if he's going to drive a thirty thousand our truck, that means she's going to be driving a thousand our car. Yeah. The rest of her life. Right. You know, until they get their income up because you don't need to spend more than half your annual income on things with motors and wheels because they all go down in value.
You're not going to become wealthy doing that.
And I'm not preaching at her. I'm just saying in general your question.
Yeah, because she's she's had the discovery, but now it's going to now comes the pain. Yeah.
And because it's a dramatic shift from a 64000 dollar 20/20 suburban.
I know. To a whoopty. Yeah. I felt everyone listening right now. Oh my gosh. Well, but you know what, you should be. Oh my gosh. The other way. Yeah. How scared I am for her. Absolutely. And her family.
I don't know how in the crowd they qualified for the loan. Yeah. I mean what was the car dealer smoking.
I don't know. I don't know either. Sixty four thousand dollars at this interest rate right now. That's easy. A twelve hundred thirteen hundred dollar cartel payment. It's more than.
I'll buy back to the norm Dave. Back to the norm. So here's the thing. I'm a car guy. I like cars. Me, too. I like things with motors in them. I like things with wheels, I. You know, I like things that go fast with motors and how you go. However, if you do math, yeah, they all suck. Yes. Now I own several and they suck. Yeah, because they do they just simply go down in value.
There is no rush. Oh yeah. They're not an investment. They're an expense.
The largest thing we buy that goes down in value. And Americans, we're just car people. We love our cars and they kill you financially so you have to limit the damage. Now this is the Dave Ramsey Show. Hey, it's Kelly, associate producer and phone screener for The Dave Ramsey Show.
This episode is over. But if you heard about an event, product or service, it didn't have a chance to write it down. Don't worry. We lost everything you've heard about during this episode in the podcast show, note section or head over to Dave Ramsey dot com and click. Dave recommends. Thanks for listening.
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.