Your Circumstances Don't Matter, You Can Still Become Debt Free!

well, it was actually starting to

become

profitable, so we got the cash flowing for our three kids' college and the pile of money that was in their mutual funds we gave to them at graduation to start their lives, that's awesome and that jump begins. that generation will

become

millionaires very quickly, that's right, that's what you're really setting up here, so don't overfund the 529 because I think you'll be able to put some money in their names that you'll give them later. you do cash flow at

your

university because you will be able to do cash flow at university because, by the way, we are talking about six years from now you will no longer earn 220, you will earn 320, yes, it is more than likely Yes, I mean

your

income goes to increase something, I don't know exactly what, but I mean it's very predictable, as well as the tuition costs, but, but, you're going to be great, you've really thought about this.

I'm doing a great job, but you don't do anything for college while you're on four, five, and six, you just make 50 or 100 dollars or something just to start moving the muscle and it kind of allows you to emotionally check the box that I'm You're not a bad mother or anything, you know you're not, but you see what I'm saying and it helps you go down that path. Good question. Jason is in Kansas City. Hi Jason, how can I help you? Hey Dave, how are you? Thank you for everything. Do we appreciate it? Thanks, how can I help?

Well, quick question, mortgage questions again here, we have about an extra 500 a month and we're on little step six where we can pay off the mortgage. Well, I think I know the answer. Is it better to throw it into the mortgage and work that principle or is it better to think about investing that and using the interest and then you know, in 10 or 12 years for arbitrage, pay it off at that time using my money to help me pay that more Quick, yeah, in the millionaire study that we did, studying ten thousand millionaires, we found almost none that followed through with your second plan, almost all of them did.

The first plan was just paying off the mortgage, that's my answer, so what we're doing What we're doing here is studying skinny people and whatever skinny people do, if we want to be skinny, we're doing skinny things, you know, and that's how it works. And so what we're presenting are best practices and that's how I also talked about how I put all of these principles together a thousand years ago, when all of this just started, you know, 30 years ago, Jason was the one I talked to. with the old rich people, not with the young rich people, I had been him, he was stupid and lost everything.

I didn't want his opinion. I talked to rich old men and the things they told me were boring and sometimes barely made sense, but they were simply how to get out of

debt

stay

debt

free

live by the lessons you do always be generous always live by a plan You know it's common sense, it's just that it's not common anymore. It's like having a superpower. This is Ramsey's program. Hello friends, I have an excellent option to help you pay for your education. The Army National Guard. The Army National Guard thinks you are. the next best generation because you've proven that even in adversity you have what it takes to succeed, that's why they offer benefits like tuition assistance, career training, and a paycheck to help you avoid debt, no

matter

what your goals are, The Army National Guard can help you achieve this.

Visit nationalguard.com to learn more about how to make a lot of money easily or life changes like buying a house or getting married or having a baby are probably the last thing on your mind to make sure you have the right insurance. I understand that big changes are overwhelming, but what would be even more overwhelming is finding yourself in a situation where you and your family are in the same situation. hole because it wasn't covered, if not having the time or energy is stopping you from getting the right insurance coverage, use one of our local endorsed providers or elp insurance agents to help you, elps are independent agents who find you the best coverage at the best price. price all you have to do is text insurance to 33 789 and you will get a

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It doesn't cost anything. Text insurance to 33789. I'm Dave Ramsey, your host. Thanks for joining us. Telephones open at eight eight two. five five two two five jeremy is in columbus ohio hello jeremy welcome to the ramsey show hello mr ramsey how are you today better than I deserve what's up thank you it's a pleasure talking to you so my question today is am I castled my way through school flight and I have 40 grand in my savings account and I also have 20 grand in a mutual fund and another 20 grand in my 401k and my question was do you think it's wise for me to buy a plane to help myself?

Try to save money on rent or should you continue renting and invest that money in something else. I'm just trying to get your opinion on that. Buy a plane. Yes, it would save me. I pay about 120 an hour for rent, like for flight school. I do. I'd buy one for 30-40k if you divided 120 by 30,000 and realized that's a lot of hours I put in, yeah, like there's no break-even point in that, yeah, however, now you know what happens with a 34, 30 or 40,000 plane is that it's a plane that's probably not going to lose much value in fact, since you're hanging around these things all the time, you could make a mistake and buy way below market and earn money.

It's possible, that's what I was thinking too, yes, yes, I didn't want to accumulate too much in things that go down in value either, well, it's not like that, yes, no, I don't want you to do it either, but here we are. We're not buying a two million dollar plane here, we're buying a small accessory that's exactly just for building something to build. Yes, what is your household income? I'm saying I'm only 20 years old. I make about 70 a year. Which is your car? okay 12. well, you know, this is the question again. I have a lot of friends who own airplanes and snoop around airports and stuff, and airplanes are a really strange world, as you know, uh, but look at that little plane there if you, if you.

Come on if you could get one that's priced at 40 and you bought it for 30 I would do it yeah but if you get one that's priced at 30 and you bought it for 30 I wouldn't do that it just wasn't. Sure, if I should put my money in something else you know, in mutual funds, in more mutual funds or if you think I'm okay to invest in something like that, it could go down in value and it's

still

with your car less. of half your annual income, yeah, yeah, so if you're okay, let's see if we put thirty thousand dollars in a mutual fund and make ten percent, it would be three thousand dollars if you put thirty thousand dollars on a plane that's worth forty and five. you save all the rental fees and then you turn around and sell it for forty in a couple of years, huh, and that's possible, yes, the way the market works, but now, again, what What you have to do is You have to have the emotional discipline to not get into airplane fever and then just go buy something and pay what it's worth, because if you pay what it's worth, this is not a good idea, it would have been better to you would have put mutual funds, right? and I would be paying in cash, I don't care about that, I know, but I don't care about that.

My point is if you don't buy it at the market, five or ten thousand dollars as far as you can turn around and sell. it's at least what you paid for it later or more so this is not the math it doesn't work on this you're following me right yeah that makes sense so you have to steal one yeah and otherwise it won't shopping. So I'm going to put the money in mutual funds and then I'm going to casually stroll through some airports and see if I can sneak onto a plane that someone needs to sell really badly and, uh, but if you don't.

If you and you never find one that's okay, just pay your rents and you'll be fine, yeah, yeah, I was hoping to use my mutual fund money for a down payment on a house anyway, so don't do it. Okay, so yeah, you're the one calling me to buy a plane, so I don't care, but yeah, yeah, yeah, if there's nothing wrong with that either, that's a great plan and the good news is that you're doing everything you need. you're doing it with cash you're actually thinking about it and you're paying uh and you're making money while you're doing all this so you're not telling me uh I'm going to go into 200,000 debt to be a pilot which is a dumb idea okay so , and because let me tell you, as you know, apparently there is something addictive about flying as a pilot, these pilots understand, yes, they are addicted, it's like being on the radio, you know it's addictive, so you have to be careful with it.

Phones open at triple eight eight two five five two two five mary is with us in dallas, texas hello mary, how can we help hello hello thank you for taking my call sure so it's okay my husband and I. We are starting to consider purchasing a home in the future at some point and have run into a unique situation. He

still

has the mortgage on the house he lived in with his ex-wife. They divorced about four years ago. We found out that he never included in the divorce decree that she had to refinance that house. We've talked to her about this for a while.

She was saying, "I'll do it, I'll do it," and then we got a call from a lawyer. Saying you don't need to refinance and now you don't even want to talk to us about it and you're saying you don't have to refinance you don't want to get it out of there you don't want to because your husband's lawyer was a fool, well yeah he didn't even have yours. , that's completely different, oh he was his own lawyer which is really proof that he was a fool okay so now we're in a situation where a loan officer basically told us the worst is coming .

To make

matter

s worse, we are going to have to take that as a debt when we apply for the loan. Yes, it is surely a contingent liability and you cannot force it. You have no legal basis to force her to refinance it. What is the balance? The loan, as I checked last time, is about 79,000, so it's not a huge amount, but it's still a debt and they say, what's your household income? There are approximately 125 a year. Do you pay the bill on time? Do you pay it on time every month? Okay, do you know what the interest rate is?

Not me, her husband knows or he may discover that he is on the market. He's not doing well. He can call a mortgage company. He can call him. about the mortgage, they can reveal all the details of the mortgage to you, so this is my only thought: they can't force her to do it. No, it's worth a couple thousand dollars to all of you for her to do this, so she would offer. pay your closing costs if you refinance and get a better interest rate on the deal and no closing costs, then you think it's worth it to just take that bullet, you have no choice, okay, you have a choice, you can't make her do it do well because the fools who sign this divorce decree he gave up ownership of the house but kept responsibility it happens all the time it's not that unique like you said before it's unique it happens all the time because people don't think this. through them they don't think they're going to end up where you are and they all end up right where you are, so you can accept it as a contingent liability and forget about it and not worry about it or if you want write a check for three thousand dollars and, you know , bribe her and you know that right now she has four percent interest, reduce it to two-something and it doesn't cost her a dime out of her pocket, maybe then she'll want to do it. but make a proposal that's logical, give his lawyer a reason to do it and maybe she'll go off the deep end or maybe she'll just be an angry ex-wife and leave you right where you are, I don't know. this is ramsay's show what makes our show unique is that we truly care about our listeners we intend to choose the best advertisers to recommend blinds.com is no exception they offer high quality window treatments at great prices and make it easy to shop for interior blinds and shutters with easy online ordering, free shipping and a perfect fit guaranteed, visit blinds.com and take advantage of this week's special savings at ramsey solutions lobby on free stage of debts.

Johan and Shayna are with us. Hello guys, how? It's you, we're doing great, thank you, it's a pleasure to be here, it's an honor to have you, where do you guys live, uh, we, we're from Maryland in Maryland, okay, great and how much debt have you paid off? I paid twenty thousand dollars, Dave, great and how long did this take you? It took us 11 months. Well for you and your income range, during that time we started at 60,000 and ended up with 63,000. God, that's amazing, so what kind of debt? It was your 20,000, so 3,000 was a car loan and 17,000 was a credit card, okay, so they're pretty normal how long were you married, a year and four months today, very good, congratulations, thank you and so on. successively. marriage you decide to attack this dad tell me the story so it was October 2019 we were engaged in preparing to get married in December andwe'll be back I have a friend or family member who needs a daily dose of ramsay advice in their life, tell them about the ramsey call of the day podcast. is quick life and money advice in less than 10 minutes.

Check out ramsey's call of the day podcast wherever you listen to podcasts. the ramsay show you can be intentional with your character you can have money and a career you are the hero of your story live from ramsey solutions headquarters broadcasting from the rental car studios dollar it's the ramsey show where debt is dumb the Money is king and the paid off home mortgage has taken the place of the BMW as the preferred status symbol. I'm Dave Ramsey, your host, thanks for joining us. Phones open to triple eight eight two five five two two five, that's triple eight eight two five five two. two five Joseph is with us to begin this hour in Puerto Rico Hello Joseph, how are you?

I'm fine dave thank you so much for taking my call I appreciate it certainly how can I help about five years ago. I'll give you kind of a snapshot of who we are and what's going on here so you can answer my question when I tell you the ending here. We moved to Puerto Rico about five years ago to start a new ministry. and uh, we rented our house and about three years ago in our small group bible study we're trying to decide what our next bible study is going to be and we think we all suck at managing our money, we all give our lives away, insecure insecurities and You know, we just don't we're very good at it, we're living paycheck to paycheck, we're not saving for retirement, so our small group Bible study decided to go to Financial Peace University, so the eight of us took this course together and um.

In the last three years we've paid off about ten thousand dollars in debt, saved our thousand dollar emergency fund, put 25,000 in the bank for our six month emergency, you know, reserves and finally started investing in retirement um and so on. I said, "We've been renting our house and about six months ago our landlord came to us and said, 'Hey, he moved to Texas about five years ago,' and when we took over the property, we started renting here and he came to us and "he told us." Hey, I want out of this house, I want to sell it, but I'm going to give you guys the first option and he's like, "I'm just going to ask you for what I owe for it, um, and we start panicking." "Okay, we don't have money to buy a house right now because we're just putting all our money into retirement and trying to save for that because we were so far behind and we started looking for another place to rent the rental market here it is totally sold out um there are so many people moving here because of the tax benefits in Puerto Rico that all the rents are astronomically high um and that's why now we're thinking about buying this house um it's you could sell it for about two Look, there are houses on the market in this. moment for about 249. 250 the same houses in our neighborhood.

He owes 200 on it, so we have the down payment of 20 per se saved, but we have our six month fund and we have about twenty-five thousand dollars between our two emergencies. no, sorry, it's not an emergency, it's about twenty-five thousand dollars between our two angers and then we have our ten thousand dollars of guest money that just came in, so we have that money there and we're planning on using it to put our 20 in the house , even if you don't put even if you don't put 20, that's fine in the first purchase of a house, the only problem is that you will get the PMI, but it is not a requirement that we give you at the Universidad de Paz Financiera in the purchase of your first house, you pay 20, as long as you understand that you are getting the PMI and, therefore, you will get the PMI. getting private mortgage insurance which just adds to the expense of the house, obviously, so, yeah, yeah, I would pool and add something to the 10.

I wouldn't use your emergency fund, I wouldn't use your anger, but if you can buy this house and put some money in with that 10 and, or if you reduce your emergency fund a little bit and say it's six months and we'll reduce it to three months, that's fine because it's still in the three to six month range, but we're not going to use your emergency fund, we're certainly not going to clean out your iras, but I would stop adding to them right now while we work on this. How long do you have to buy it? How long will it last?

Well, actually, we. we signed the contract with them so we were in the contract process so why did you call me or did you already make the deal? Yeah, I guess because I'm nervous because you know that question about whether or not we should liquidate anger, no, you should. and uh he uses all our money and that's where I couldn't find an answer, yeah, no, you should find that, so I never said it. I never told anyone to pay off anger to buy a house. um no, you should. No, but the 10,000 will be enough for you to participate and anything else you can raise between now and closing.

How far can you delay closing? Stop your retirement savings and accumulate cash in cash in cash in cash to sell everything in Accumulate cash in order to get a good down payment on top of that ten, everything is fine and again, if you reduce it, if you have an emergency fund of six months and reduces it to three months, that is not the end of the world. uh you might want to beef it up later again, but as long as you're in that three to six month range, but no, we're not using the entire emergency fund, I wouldn't use a dime from your retirement account and then, um, The payment should be a quarter of your take-home pay at a 15-year fixed rate and you should have known that at Financial Peace University we teach you that, so I hope that fits your income in this situation, but it sounds like if it was a good buy and um you're in the right place to do it.

You're just trying to scrape together some nickels from the corner of the couch to make it work, that's all you can accomplish. john is with us in dallas hi john welcome to the ramsay show hey dave what's going on better than i wish yes, i advise at a university and i got in trouble with my bosses because i told some students who came to advise that i didn't think about General Studies was a good choice of specialization and my bosses are pressuring me to promote this major and all our majors equally and you know you talk a lot about useless majors.

I was just curious to know what you think of the general studies major and what would you do if you were in my situation and I think I'm going to hang up and listen? Thanks thanks. I appreciate your call. A general studies degree assumes that all education is profitable in the marketplace, and we have proven that it is. No, education is important, the more you know, the better life you will have and if you know some of the things that the market really appreciates, the better income you will have, but you know, that's why I keep reading like a maniac. and I haven't been to college in years, so adding education adding knowledge, um, even if it's just weird knowledge about a hobby you're working on, that still increases the quality of your life and in that sense, general studies o A liberal arts degree or whatever you want to call it is fine just for a full life, but it is not the equivalent of some of the other degree fields, and in terms of what the person can do with their life as a result of this uh and then you know you would be much better off not going to college and getting some technology certificates uh you make a lot more money and uh uh you would be much better off studying a field of study that uh You know, the young people that come out with logistics degrees from the supply chain now they make eighty and ninety thousand dollars, they don't come out with general education, uh, and then, uh, uh, you know, what would I do if I were in your shoes well it sounds to me like you're working for an idiot you know what They are asking you to promote things that are as if they are the same when they are not and they are asking you to go against your integrity in other words now you have to lie to students to please your boss so it seems like no I'm going to work there for a long time.

I'm going to do something else with my life. I guess I've done it several times in my life. Hello friends, I have a great option to help you pay for your education. The Army National Guard. The Army National Guard believes that you are the next best generation because you have proven that even in adversity you have what it takes to succeed. That's why they offer benefits. Like tuition assistance, career training, and a paycheck to help you avoid debt, no matter what your goals are, the Army National Guard can help you get there. Visit nationalguard.com for more information.

Have you ever made a dumb decision with zeros at the end because I didn't do the research, yes me too, most people make decisions based on feelings or opinions, especially when doing something like buying a house, but when it comes to the housing market real estate, feelings are not your friends, facts are your friends, so check your facts and find out what. In fact, you can afford to research trends in home prices. Talk to a reputable real estate agent in your area. Listen in if you're thinking about selling a home in this crazy market we're in right now.

This is not an amateur hour. Anyone can sell a house. Yes, a monkey can sell a house, but they won't necessarily get the most out of it right now and, some of you know, some people who get their real estate license don't know what they're doing any more than a monkey. You know this, so you need a professional on your side, you need someone to know what they are doing, you need to contact one of our real estate helpers or local endorsed providers, never buy a house without the facts and you should do it, this is not is listening.

You need a professional because this is a strange market and you could lose tens of thousands of dollars if someone doesn't know how to navigate the craziness that exists right now and you really have to have someone who knows what they're doing right. now text house at 33 789 especially if you are getting ready to sell a house text house 233789 paul is with us in mcallen texas Hi paul welcome to the ramsey show and i love it the main music, so I just have one question. I've got kind of a crux in my life right now and I could use a little advice because it's a bit complicated, well I practically live here, it's an affordable way of life, but I've been in a position in higher education for about More 10 years and there is little to no upward mobility and of course you know you are considering continuing your education there is no guarantee you can earn 10k or more you know it's really not worth the return on investment I get If I had the opportunity to consider moving to Santa Barbara, California for work, I could also add higher education, but for the most part, I own a home that is, as I like to say, a small farm operation with a big garden here where I am and I really wouldn't do it.

I'd like to let it go, but I've been trying to look for job market opportunities in this area for a long time and haven't found much in the way of upward mobility again, so I'm wondering if this is potential. opportunity in California even though I realize it's a very high-end, expensive place to live, even though it's paradise, you know? Is it really worth considering doing something like that, even if it's just for a couple of years, to get back into ownership here and rent or sell or is it just you know, it's really just one of those things where I'm trying to get my head around finances and this came up about what you earn now, oh, about 40.

How much would you earn there? Yes, about 80 to 85. is the estimate, of course, I would fight for more, but you know, that's about the estimate, okay, oh yeah, there's no hope of owning real estate in that area unless you there is some long-term investment, but yeah, you know it would be, how did you do it? Did this advantage arise? Well, it's through an old friend of mine, an old colleague, and he's on the opportunity and he's looking for people that he can trust and that he knows that they work hard and for good, so I mean, that's how yeah .

It came up about what do you do in higher education? Well, I help with student grant administration right now, but I also worked in public information and I also worked in grant writing and this would be working more in an IT type of way. from the project management situation, then you have a doctorate in higher education or what I don't have, I have a bachelor's degree, I have two bachelor's degrees and an associate's degree and I am about to finish a certificate in project management in the next probably four weeks, who? It says you have to stay in higher education, no one does, but I've tried, literally, I've tried, it's like part of my work schedule, week, I spend two or three hours looking for a job and I apply, apply, apply and I just haven't done it. just not hitting the mark for some reasonIt's okay, I know it's hard, right, I know.

I think if you had other options you wouldn't even be looking at this one. No, I don't have many options. No, I wonder what I said. That's not what I said, I said if you had them, if you had three or four options on the table, I know you told me you had no options, but if you did, if you had an 80,000 option in Dallas, you wouldn't even be there. talking about this, well you're cutting, we had a little cut there, okay, I said if you had an 80,000 option in Dallas you wouldn't even be talking about this, so I think what this has done is it's woken you up. uh and your job search technique probably sucks and we need to work on that and um and let's give you a few more options to look at because I mean, if you want to do this, there's nothing wrong with what you're talking about, but it sounds a little bit desperate, like it's the only thing there is and just no, that's just not true, it's a scarcity mentality and it's just not a book, you just couldn't get the right thing, so what I would say is I'll send you a copy from Ken Coleman's book, the principle of proximity, and if you have degrees in areas outside of higher education and you've had trouble finding upward mobility in higher education, education in your area, then let's get out of higher education and start looking project management anywhere you just got a certificate on project management uh pm1s pm2s or you know they are earning more than you earn and uh they are certainly you are earning more than you are earning in houston dallas san antonio austin for sure and uh and I haven't even left your state yet so uh and I'm not against you going somewhere else, it just feels like you're considering it because you feel like it's the only possible path to make more money and I don't, I just I don't think that's the case, so I'll send you a copy of the proximity principle once you get to King Coleman. website I want you to learn everything there is about searching for a job about how to make your resume about interview techniques about how to get your foot in the door and get your name off the pile because all these applications you're filling out are going a long way. with 2000 other people and no one ever sees your app again they bury you you have to do something to differentiate yourself and ken can show you how to do it go to ken coleman.com and he can walk you through all that so Hey man thanks for calling people, when they're faced with a decision of any kind and none of the probabilities and they know they have two options and neither of them are great or it feels like it's very, very limited or very You get stuck and we all become a little fatalists about it, it's like, well, that's the only thing, it's almost never the only thing, so what I've had to learn to do is that the more options you have, two things happen regardless. what are you looking at if you're thinking about buying a car if you're thinking about a career change if you're looking for a wife, I mean the more options you have, the more power you have and the more likely you are to make the right decision when you just You have two options and you feel trapped.

Very rarely is any one of them the right choice, so you need more options to empower you so you don't feel trapped and make a better decision. each case and there is no difference with it this is the ramsey show thanks for joining us america jonathan is in lubbock texas hello jonathan welcome to the dave ramsey show hello dave how are you better than? I deserve what I get hey I'm facing a unique situation. I have been blessed with some amazing parents who have been excellent role models in all areas of life, especially financially, and they taught financial peace in Sunday schools and even did I read Financial Peace which I didn't enjoy at the time, but I'm so grateful now that I'm 19, I just graduated high school, I'm about to finish my first year at a community college, um, and I've been able to go completely free because of scholarships and some even came back to me for being able to drop them off. for later and the leftovers and my situation surrounds me.

I'm planning to go on and get a bachelor's degree and I'm even planning beyond that and I want to get a law degree in the future, but through reading and having great mentors and everything that I've learned from reading about money and especially through shout shows, I know that the It's prudent when it comes to saving for retirement, so my stems course I have enough money saved, my family has it to be able to fully pay until my bachelor's degree, but I also have siblings, so I understand my law school. It'll be kind of a cash flow system when it gets to that point, but my question is, "I've been putting money into my Roth ira that I set up last year and I'm contributing as much as I can, but financially thinking smartly about you." I know how to pay for other things and I've sat with my parents talking about it, but my question is should I continue to contribute to my retirement savings while I have this desire to go to grad school?

I'm not entirely sure. I will have funds for the down payment, no you shouldn't, you should stop saving for retirement and you should save all your money to complete the educational career that you are on, and the reason is this, what you can earn in the market. extra as a result of these degrees is much more than what you will earn with a mutual fund, the right education that can be used in the market to increase your income is always more valuable than a mutual fund, now education is this left-handed puppet, no It is, I mean. you get a degree in underwater bb stacking or something, it's worthless right, and people get these stupid degrees, but if you're going to get a law degree and then you're going to use the law degree to create an incredible income. as a lawyer and pursue a really solid career in law, whatever that is in any version of the law, but I mean you're not going to work for thirty thousand dollars a year for the state and do nothing.

I'm talking about you're going to go out and use your law degree to make a couple hundred or more a year as a result of being a lawyer and build a career in that area that will give you a better mathematical return on your investment than a mutual fund. and you will have plenty of time to make your investments. I don't want you to put it off forever, but your education with the path you're on, Jonathan and the guy from Young, you're more valuable the way you're presenting it than a mutual fund, so no, I'd stop and accumulate cash and we would get this law degree and we would pay cash for it and a big stack of cash. and if you have a bunch of cash left over because you accumulated a lot when you graduated, you're left with a big old pile, well, we'll try to figure that out.

You know Lane is in Lincoln, Nebraska. Hi Lane, how are you? I'm doing good, Dave, hey, first of all, let me say thank you so much for everything you and your team do. It's an honor to speak with you. An honor to speak with you. Lord, God bless you. How can we help? Yeah, so hey, last year. out of the dumpster, my wife and I were able to become debt-free and finish step two for the first time in the eight years of our marriage, which was incredibly cool and then I guess you could say in part thanks to the government stimulus, If that's possible, we'll get over it quickly.

Baby, step three and we can upgrade an old car, so we're at steps four, five and six faster than we expected. Wonderful, but that is a great blessing. Marvelous. I am a pastor and we currently live in the church parsonage. It is a very nice house, we are grateful for it, I know that is not always the case, but my question is: do you know if we love the church we are in, but if we will be here for five years, ten years or even? I am retiring and we realize that eventually we will have to buy a house and when that time comes we don't want to start from scratch at that time, so my question is where should we save money for this future house?

I would start paying a small house payment into a mutual fund and then that's your mutual fund, yeah that's just your fund for buying a house later, it could be sooner, it could be later, it could be a lot later, I don't know how long he will be in the parsonage either, but after having worked with pastors for 30 years, if you move this forward in 30 years and never save money for a house and then you know your pastoral career, you retire and You don't have the parsonage. You don't have a house anymore, yeah, exactly, that's a problem, so you know, I don't know if this is going to happen.

Maybe you will move in five years to a different position and they won't have a parsonage. Then you would do it. get ready to buy then or I don't know if it's 40 years from now and this parsonage is gone, you know, and you spend your entire career in that church, which is fine with me, you know whatever. I'm open to whatever God has for you, but I do know that if you save money it will keep you in a position of uh uh uh, well, being able to buy a house, it's that simple, so yeah, start, you know, pretend to be your baby.

The baby step six is ​​really there like you have a mortgage, but instead of paying the mortgage you are accumulating cash to buy the house and therefore everything that you would put into the baby step six and maybe you want to just set a mutual fund with your smart vester pro or even just an index fund, would be nice, but just automatically withdraw it from your checking account each month, a small house payment depending on your household income, I mean if you start putting in thousand. dollars a month aside and you do that for a decade, you'll have plenty of money in that account to buy a house, maybe even pay cash for it, so get in pretty good shape.

Zach is with us in New Jersey. Hi Zach, welcome. to the ramsay show, thanks for inviting me, how are you? better than I deserve, how can I help? So I'm 20 years old, married with a child in her life and I've been watching a lot of YouTube videos for the last month. or two and becoming debt free is definitely at the top of my priority list now it's good. My wife and I have two cars, one of them is paid for and the other has thirty thousand dollars on loan. In total we have 120,000 and the other 90,000 are student loans and we are getting to the point where his car has too many miles on it because he drives 40-60,000 miles a year.

My solution to that was that she would take my car, which has 10,000 miles on it. he would take the other car and she would drive this one until he needed another car, the work was worth it, um however, since he spends so much time in one vehicle each year, he is quite particular about what he wants and that's why he really wants to change the car that we now I'm thirty thousand dollars in debt and I bought something worth between forty and forty-five thousand dollars in that um and I had worked out a plan with her that we can pay fifteen thousand dollars in six months and at that time since the payment would disappear from the other loan, we would work to potentially buy that car, no, it's not a chance, buddy, listen, listen, I don't give a shit what's special about her, you guys are broke, you're up to your eyes in debt. and now. you're talking about buying a damn 45,000 car and putting 60,000 miles on it a year and destroying its value, Zack, that's dumber than a rock man, there's absolutely no chance, so our scripture of the day, proverbs 3, 5 and 6, trust in the lord with all your heart and lean not on your own understanding in all your ways acknowledge him and he will direct your paths benjamin franklin said that an investment in knowledge pays the best interest mary is with us in dallas, texas Hi Mary welcome to the ramsey show thanks Dave, I just have a question about the annual home insurance you buy.

I own a house, it is fully paid for. I have no debts. I have savings and was wondering if it is wise to do so. I just made a claim and we had hail and they. I'm going to replace the roof myself, so hopefully that will last another 20-20 years or so, so I was wondering if that was a wise idea. Maintaining homeowner's insurance excuses me for not purchasing homeowner's insurance. No, it's not wise. I would buy homeowners insurance. Okay, I have homeowners insurance on my house and I can write a check and replace it tomorrow if it burns down, but it's a good buy to insure it on all my properties that I own.

I have insurance and I have the ability to replace all of them financially if something were to happen without it, but it is good risk management to transfer the risk of a fire or tornado or other catastrophic event. Now what you would do is raise your deductible nice and high, so ask your landlords. I do two things: one is buy your home insurance. If you have not purchased from an independent insurance agent, you can go to daveramsey.com and click on elp to get insurance. They will buy a lot of different insurances. companies and get you the best price number one, do it right if you haven't because you can get a much better price number two, get the deductible price and I'll teach you how to analyze what your deductible iscurrent.

I think it's two percent two percent, that's unusual, usually it's 500 or a thousand dollars or five thousand dollars or not, it's a percentage of the value of the house that they've insured, interesting, so how much have they insured? insured for 249,000. Okay, so you have a five thousand dollar deductible. Basically, yes, approximately. Okay, that's a very high deductible, so you probably won't gain anything by increasing it from five to ten, but you could ask. Okay, because you know I'm not worried about a loss of ten thousand dollars for you, I'm worried about a loss of 250,000, so if we can, you can get a substantially cheaper price by going from 2 to 4 with your company or by getting a 5000 deductible with someone else and our ten thousand dollar deductible with someone else, look, this is how you look at it, what are you paying in premiums now?

I think if I'm not mistaken it's around 1,200 a year, okay? so let's say we go from a five thousand dollar deductible to a ten thousand dollar deductible, two percent to four percent, okay, you're taking on five thousand dollars of additional risk and if they lower the price by a hundred dollars by doing that From 1200 to 1100 you can divide that hundred by those five thousand and you quickly realize that it is 50 months. You probably won't do that, but if they lower the price two or three hundred dollars so you take an extra 5,000 risk, you won't do it.

If I have so many complaints about this, then I know I would accept it. I have very high deductibles on all my stuff because, again, it's not the first five or ten thousand that I'm worried about, it's the first 250,000 and the last 250,000. Nathan is with us in universal city texas Hi Nathan, are you here? how are you doing sir? better than i deserve how can i help? yes sir so my question is is it wise to share a room with my girlfriend so my company is sending me on a trip to maui es my only summit this year, so they'll send me away for a week and I'll be able to take another person with me.

I would like to take my girlfriend with me, but I don't know if it is a good decision to stay in the same dormitory, it's okay, they all already live together sleeping together, no sir, it's okay, then this will violate that right, we are trying to abstain until the marriage, yes sir, okay, and how old are you, sir? 25, okay, um, I mean, you certainly can do it. whatever you want, but you're asking me, which is a mistake because I'll tell you, then I would get a separate call, yeah, I would get a separate room because if I'm 25, I don't have that. a lot of willpower, right, I mean, you're really just asking for a situation that's apparently based on you telling me what your values ​​are that you're going to regret, you're just asking for trouble right on top of that, um, I don't. do.

I don't really care how people think about how she looks, but I care about what something looks like to my wife and I don't want to compromise her reputation and I'm going to guess and say if you're worried about this kind of If we shared that value system then I would worry what people thought about my wife. That is a true statement, yes, sir, yes. I mean, you like her father, mainly her father, honestly, yes, and she already knows, because she knows everyone. All of us guys come on yeah you might make it but you probably don't know it and why go through that oh my gosh so now as a matter of reputation of the lady you love we'll be very old . created here we are going to protect her reputation with her father and her friends because you have made this declaration that you are going to wait until marriage, so we are going to establish a situation that will not leave anyone questioning what you did, much less. uh having to have that kind of self discipline that uh 25 there was no chance oh so nathan you are a good young man you have a good heart we need more people like you in America today there are very few of youuh thank you sir it is my honor to speak with you today, phones open at triple eight eight two five five two two five yes, there are people here like me who are dinosaurs who actually believe that we are supposed to be married before we get engaged. into sexual activities like that, yes I know, I know, I know, it's hard to believe for some of you, you can't understand the concept, but it's part of my Christian faith.

In fact, I don't think I always did. I've always been a Christian and it's my faith that has informed me about that and it's not a question on my mind, but it seems to be a foreign concept in a culture that has become so toxic with foreign concepts. um uh, my old heart? my old dinosaur heart it's good to talk to a Nathan who is actually worried, a gallant young gentleman worried about his fiancée and really cares what his father thinks, what a man of honor, oh don't we need more men of honor and more women of honor, men of virtuous and virtuous women are becoming more and more rare, it's almost like having a superpower nowadays, so thank you sir, today you did my heart good.

I appreciate speaking with you because it puts this particular hour of the Ramsey show in the books. James Childs. is our producer kelly daniel is our associate producer and phone screener. It's the first time I've done a show alone in a long time. I feel a little alone here, which leaves this hour of the show in the books. We will return to you. In the meantime, before you know it, remember that ultimately there is only one path to financial peace and that is to walk daily with the prince of peace, Christ Jesus Hey, I'm Kelly, Associate Producer of the Ramsay Show , this episode is over, but if you heard about an event product or service and I didn't get a chance to write it up, don't worry, we've listed everything you heard during this episode in the podcast show notes section or visit theramsi show.com thanks for listening