From the headwaters of Ramses brought our car rental studios. That day Rams Asia were debtors. Dom carriages king in the pay of mortgage has taken the place of the Bmw status choice and I ran through your most like you were joining us America. It's a freak all AAA eight to five five, two to five: that's AAA, eight to five: five, two to five, you jump and we'll talk about your life and your money. Currents of this, our weathers

Caroline. I carry welcomed the show I gave. How are you today, Then I deserve what's up in your world hey, so my husband and I have a car fleece that we're trying to get out of I want to pay it off in our debt snowball and he wants to talk. Didn T dealership, have them pay it off. Then move down in car and pay off out loan, so my question is why why is his idea? Not a good one other questions regarding foreign of down in car, when you do that remain so, what's the car that you're driving, what's the sticker price on it or what you were through something? So it's it's worth while to get out at Valise

its twenty five thousand deny outright, and what would you move down to one another, actually bought something the under that for sure watch way under. Way under moments, five thousand dollars. Ok, what again this is! This is his idea. I just want to take it off in the debt snowball, but he thinks his way would get us out of tat sooner so, probably something just a couple of thousand dollars last I would think, or every movie you know the further you move down the more his idea would be accurate remains the factual, you're gonna get out of death because you're getting rid of more and more that right by makes sense so yeah, I think that's a good idea.

Possibly so twenty five thousand, and what does that car worth? Do you think? Well, trade and value is twenty one to twenty three and private parties, more, of course, about twenty four to twenty six shows a legal problem shall it for about what it takes to get the Yom pay it off roughly right right now. So what is your household income one fifty and watch the other car worth? It occurs, weight and nineteen thousand and how much other dead other than your home

gotcha twenty five on this least car and what else it's just. The two were paying off the other car at nineteen, which is alone, and then this place. That's your only the most prudent alone, no credit card know nothin else now we're in baby step to weave paid off to credit cards and notes to the amount, and so basically, what were saying is forty. Four thousand dollars make sure debt free and you make a hundred and fifty cracked our room of farmers, this don't own cars or anything wheels and motors added to gather that equals more than half your annual income. Does things with wheels and motors all go down in value, and if you got too much tied up in boats and tractors and see dues and motorcycles and cars that all go down in value, then you are obvious

We're gonna have trouble building wealth right. You have not violated that you're, not over half your annual income with these two cars. Ok, the second rule of thumb that we users can you be a hundred percent debt free except your home inside of two years, and the answer is yes, you could you can pay or forty four thousand in your sleep in two years making a hundred and fifty from Iraq you do in one year, so it didn't like the car that has the fleece on it now, not really without all capture you probably trading it anyway. Well what I would do pay off. A nineteen thousand more caution is possible in just a few months, and then I would get about the business of trading that car for whatever it is.

You want to drive that is around that same price range and just do it on a loan and then turn pay that off. I don't. I don't have a problem with you guys driving cars that are worth forty. Five thousand dollars when you make a hundred and fifty if their paid for ok and so, if you want to be in that price range, I see no reason for you to move to a father nor car. I would rather, you cut your lifestyle, get on a tight budget watch. What's going on, you know, punch this thing in the face and get it done and keep some reasonable cars for a family that makes the devout knowledge exactly cuz if you move down to a five thousand dollars car as soon as you get out of that first thing: you're going to start saving moving to a better car, because you make a hundred fifty thousand

Furthermore, cars, unreasonable. You got her, I'm Rebecca bright with cash. I want this one off quickly and keep it or pay something like it off that you like and keep it. So if you want a train, Fine, don't trade up, you don't have the trade down much but trade into alone. Out of a fleece, and and pay both of these things off inside of one year. That's what I would do if I were in your shoes, took me man to get all the pieces gathered up, but the family got there. My fault. Recalling a member's whether in California High Amanda, welcome that I've Ramsay Show hurrying I'm so glad to be talking to you right now, you're doing what's up so my question need help. Right now, I'm in baby set number two in the snowball effect we have two remaining won't let my school on, which have only six thousand left.

In my car alone would surely have seventeen thousand and I'm hoping planning to have that feed off within the next twelve months. Why? My question for you is I have thirteen thousand in my saving. Should I throw twelve thousand allowed into that? An undue Why not only have one thousand my feeling, how did you know how to ask that from your baby steps that one is to have at least a thousand dollars a year by year, Phoebe language, all non use all non retirement savings on investments, glimmer of debt cod, my second predicament with that My mom pounced mortgage bonds, twenty four hundred a month because she's my father passed, seen time that I got my first. You grab job and it kind of just so on nukes, my mom, quite right now, she's network

He had no income, fella have mortgage. It fell on my lap why she'll employed I'm she'd been unemployed for the past five years, taking care my dad like so while longer the earth he passed away. Fight years ago, it's time for her to get on with their life. You can't pay her house payment and perpetuate and perpetuation already know. She think he had twenty ninth shouldn't issue disabled now or she can get to work or get rid of this had twenty four hundred dollar month ash payment, but she can For now. You need to be done to a thousand dollars. Tat your need a better plan on your mom's housing, then you paying for it until she dies completely unreasonable. This is that ever Hampshire,

It's the season of giving show. You're cellular servers to pure talk, USA save money and get a free copy of my book. The total money make over and a copy of Chris Organs book everyday millionaires, plus twenty five lucky winners will receive signed copies of both books. Folks, all up talk. Usa plans include unlimited talk, text and data with now. Contracts. Try risk free today, just call pound to fifty and say the key words Dave Ramsay, that's pound to five zero key words, Dave Ramsay

well at time of year that giving time of year. This is the time of year we celebrate gods. Generosity to us is only begun, Son and in the name of that it inspires generosity by all of us, and we approve. You being generous, shit you live, I know one also later you can live in Gill like no one, we're doing a giving edition of the diver amply show on the twentieth. We always do heading into the final days of Christmas. And giving edition is three hours of stories from you time that you gave or a time that you received

you won't be part of that. We want to hear your story and let you tell it here on the air email us giving in the subject line and Daniel Wanna production team will get back with you and get shut up to be here on the show whether certain we'd love to have your story be part of it. Giving in the subject via email me at Dave, honour at daybreak, dot com Dave on air at Dave, Ramsay, DOT, com. Day is whew banners weathers in Illinois high down, Welcome Renfrewshire aid aid. Things were taken off. What's up, just a moment to the under and I'm looking at auto insurance, and it looks like I can save a good amount of money there does. If I'm good would like to adopt a born, premium everything, but I'm looking into like the bodily injury property damage like sure motorists,

injury and that sort of thing, and I didn't what levels recommend for that kind of stuff. Well typical lab we in the auto insurance world, the cheapest part of the policy, is the law ability part of the policy short recommend carrying high liability. Five hundred three hundred or something like that, because it's not the difference in that and don't going cheaper That is very low, and if you get into the hundreds of thousands Dollars of liability, it on its Loomis it seldom stops at one hundred in our two hundred. I'm you want to get you wanna get the five hundred three hundred or five hundred to fifty are restructured with that particular company. Something like that. So in general, in the insurer world ability is one of the best buys it's. The least you pay for

and it's a a good spend as you get wealthier. And you start to say you have a net worth of more than a half million dollars and, or you have a large income Europe. We are even gonna pick up a liability umbrella policy to attach to the top of homeowners and the top of your car insurance you can an extra million dollars and liability for those two things in an umbrella policy for a couple of hundred bucks a year in most cases, and so once again, that kind of makes my case that The liability insurance is just not that expensive and others most of the standard. Coverages are fine on the other stuff. You're looking for a just and apples to apples comparison, what you had so that you can see if you're really saving money, and you typically will be money when you use someone like a zander that as an independent, ensure

french agent. Thanks for the calm, appreciate your joining us We talk about this in the ads all the time, but it's good to just stop as a teaching tool and that you understand there's too tight some insurance agents out their captive agents and independent agents, captive agents work for one company like a state farm or a nationwide. Or something like that. They can only sell that company their captive their owned by that company. In that sense, an independent insurance agent so many policies for many different companies. Now they can't sell for the captive accompanies, but you'll find is the independent insurance agent and shops among several different companies will almost always beat your state farms in your nationwide and that kind of thing for one thing- there's more expensive: Bob letters on their commercial castle.

Money to get an enough I'll, quarterback honour commercial costs, a lot more money to get two of them on your commercial and just keep this My that's built into your premiums, ok and stay farmers, the largest insurance company in America on property and casualty, but they are definitely not the best personally had trouble without getting to pay them client getting them to pay claims. People hit my car with in the hedge day form insurance always go. Oh crap is she's, gonna, be a fight. I'm going back to fight these people to get my money out of him and on so that that's what you run into and so do you wanna net is not big, does not mean better and more expensive. Does not

better and just cause. You went to high school with the person doesn't mean better, ok, you're, looking for an independent insurance agent and they will shop among certain pen assurance. I don't work for you get paid when they do a good job and you by the other people work for the insurance company, and so that's why they call it a state form agent or a nationwide agent or all state agent, those captive companies and when you shop, you'll almost always get a better deal when you shop against those and in many times much better coverage even all right of next was gonna, be term in California. Item welcomed that I've Ramsay show I gave things are taking my call sure. What's Michael, my question is

I never saw the Roth IRA each year in my grandfather once they give me ten thousand dollars to invest. Is there any other options available to me for tax advantage treatment? investment leaving self employed income, very small misery by a thousand a that's about. The only thing you could do is you could probably do us a sap on that amount of power not worth doing a small. Is that it now, the that's pretty well self employed in com. You can do a simplified, employ pension plans for a simple fora. One k, simple IRA, those kinds of things low for a one page, all kinds of things you can do alone, plans with the self employed income the IRA is

only other palatial really you'd, only more shelter it there. In your case, you're gonna wanna do Roth IRA, not a traditional. That's where you now good. Ok, reopen track there. So you do you have any death, I you know what's good for you wild on you're on your way. So You're down to just how you want to invest that, then how long you planning on leaving it alone. In my when I run out of things that I can shelter under What I will do is, I will buy and asked, p five hundred index file that's no commission no load, and They typically have watched, called a low turn over ratio, which means they do not sell the stocks inside the mutual fun. Hardly ever and so there's no capital gains activated until you sell out of the mutual fun. So when you buy turns out goes up to fifteen thousand dollars. You don't pay taxes,

five thousand dollar increase hardly at all you sell out of that mutual fun. So what are? They a load money into one of those things and let us sit there and elaborate Bobby's real estate, because I like to buy real estate for cash with no dad. Of course, then that's the way. I build up some good question. Thank you for joining us. Open phones at eight hundred and eighty eight, eight hundred and twenty five five thousand two hundred and twenty five Benjamin is gonna, come up after the break and ensure others have this break, but you'll be optional before United. Look around here, trying to figure out how to be ready for thirty years. It's something I have to learn to do marks on Look, I'm sorry. I don't understand how term life insurance work, for example, what if I get a fifteen year Lastly- and I live for twenty years- to lose all benefit of that fifteen, your policy, the benefit of a term different rules policy is, if you'd die, while you have it, they pay. That's the only benefit Europe

or insurance does not have benefits to it. Unless you wreck your car you're homeowners insurance does not benefit to lose your home burns. Insurance does not grow benefits. Insurance is protection, any time someone has insurance the great benefits known as saving money inside of an insurance policy which one percent of the time you do that. You get screwed why hundred percent time, you do that. You wish you didn't horror idea, now the only benefit you get. Is your family taking care of if you die, while the policies and actions

Isabel lies in the lobby of Ramsay solutions on the dead three age to do it that breach scream where you from? I'm from Boston Massachusetts, all the way to Nashville. Welcome how much we paid our. I paid off sixty six thousand dollars very cool alone that, like you, twenty months good for you and your range of encumber, Annetta started at forty two when all the way up to fifty two with some side, jobs, Co. What do you do for a living? I work marketing often what was the best job yard. Obviously it was baby sitting. There are, or twenty bucks, thirty votes round twenty bucks an hour, usually flowers, and just as much of that as I could absolutely were cool. What kind of that was? The situation

Well it was student loans and a car. Ok, how old? Are you I'm twenty three for you, school and you're. Looking to Sally may- and you said a woman you one down. Oh yeah. She was living in my bedroom, so ah how how? How did dummy your story? How'd you get connected with us and what you do so a couple years ago, when I was in college, I had actually seen the envelope system and I saw that you had created it and everything and I was started and I never got started so then back the February I saw for posts Facebook posted a quote from you and then posted about her book. She had a couple of books that she was giving out two friends for Christmas and before in everything and I was like art, so Dave does a little bit more than just the envelope systems. I googled you and found out that you had a book in that you do. Podcast

and I listened to your podcast for a couple hours and I was hooked. I had some money in saving so the next day I dropped fourteen thousand dollars my student loans wow. What the left? Two thousand dollars for my start or emergency fund and then just started. Kickin debt show you believe, When you read it, and just did it, I did my boyfriend, but I was crazy. Instead of my parents and their alike, are you listening to this guy? Like could even know anything about him like? While he tells me to pay off their debts and I'm gonna, do you Lucian might move you put it under the worst cases, you're getting out of the good for you, so you poor Hi did so for hand I was actually kind of doing the doing the baby steps, and I didn't really know it. I was putting about a thousand dollars a month after my paycheck towards my student loans

and then I found your programme. I would like our own kind of doing a little bit out order x. I withdrew my for one Kane everything, then that's what kind of got everything organised and just wrapped up so we're gonna. Do it in order just bones or punishment yet good for you to show how hard was when much, it was really hard. All my friends always wanted to go out and they want to go on vacation, and it was just hard to say no, boyfriend was told me that I was ruining my life by not going out and having some fine and by working all the time in all the extra. Be sitting in everything by ended up being really worth it in the end that recoup, whom I did I read MR encouragement: I'm getting really love it very girl, very cool while she did, you run your life now

It has made it a lot better, twenty months of sacrifice and now you're free of twenty three years old, I am free, you're, not gonna, be thirty. Three years old, whining about your student lumber nope at thirty three, I want to have a house paid off, so that's my ex all give after it like it. That's also mark start. So did you have a body that was a cheer later, someone, your friends, your parents, your boyfriend or I'll, join you ve lost your mind. Why do my best Karla Work, really cheer me on she's, not on the programme by she knew that I just wanted to go and get it in. She supported me every bit of the way my boyfriend did support me. He thought I was crazy, but he has supported me and he's actually on baby step to right now, you're a he doesn't want to believe that he says it's not Dave's plan, but it's his plan involves the Oda by use on your plan, my parents, that I still think I'm crazy and but now your fruit, I am free, while very good, Well you never know you pay for your house, but the time your thirty three maybe you'll, get their attention. Then oh yeah, I'm proud

very well, don't worry or cheerleaders than will just be your encouragement from donor in Tennessee. Girl very well done. Very impressive. Isabel made sixties thousand dollars twenty three years old. Morning. Much very impressive, very impressive, so now that your free, other than buying a house. What your first big thing, you're actually go, spend some money now that you can live a little better, Actually, so now that I have almost my baby step. Three fall, my boyfriend, family. We lost our house on Thursday to a fire. So we're gonna, be using some of the emergency fund to help them get through that make sure that they have closed and that our animals are all ok sure they are then, after that I'm gonna start baby step three star They refer house get a little car funding weighing just in case doesn't have it continue? My four ok, very cool. I'd, go bomb bomb

good. You we're gonna copy across organs book for you every day, millionaires, you're gonna be one for you know this right, I mean look. You pay off sick. Six thousand bucks- I mean you are on your way. This is pretty amazing, don't stop! Oh I'm not stay. They all that's what those books about the next chapter for you. You cannot yet chapter one don't get out of debt, Now, let's go to the bill wealth part, which is why? got out of that: yes, so well done. Isabella very, very, very well done excellent, excellent job. All right, Isabella from Boston, sixty six thousand dollars Beethoven, twenty months, twenty three, Megan forty two up to fifty two with the saddles counted down. Let's era Why you screw three two one eye I love it. I love it allowed very well done?

very well that man the amazing very cool our Benjamin, is next Benjamin's in Kansas Power, you Benjamin Brigham, restrict Mccall, they sure. What's up I've got a little issue with with my mother. She had about ten years ago consigned on a student alone, a private student loans my brother about fifty thousand dollars back then, and shortly after that semester, he passed away. Toma hop. ITALY student loans, bunny. It dont have a clause that they will discharge alone if the student eyes. So we went through the steps on that and submitted the death certificate, and so on worth. While they came back and said that since she co signed on it, she have to pay the loan.

We have. Since with the interest in the low principle payments. I believe it's out of the five hundred our payments every month. Thirty dollars goes towards the principle he, and with that another comment for going through that, I guess research. Whether or not the discharge it be, total amount is now ten years later, sixty three thousand dollars, just wondering if there's anything we can do earth or diving? Erika Mann report is stuck whether he needed that holding There is not a federally ensured student alone Unless that depends on how the clause reach I've never seen a private didn't loan that says that the is forgiven if its co signed the you wouldn't be liable. I think she's, probably gonna, be liable. But if you ve got a clause like that, in that

interacting you're. Looking at it, I would take that to an attorney and have a look at it and see if they think it's enforceable. Or if your mom is gonna be on the hook now. This is not a federally insured stood alone correct. That is correct because affair, we ensured stood alone- is one hundred percent Tom forgiven upon death. Even if there's a coach and we do so that it would be discharged if the student dies, but it doesn't say anything about a co sign or so yeah. I figured it would be. The case of work should be stuck with it, but I just wonder why I would ask our journey because if it, if its vague I'd, probably go for the juggler. I mean it's a sixty thousand dollar discussion bell. Which had already been on for five thousand bucks on an attorney to punch animal So what happens it might be that they think they just got you IRAN, because you don't fall back. Shall I don't know I do?

No I've never seen that clause in a private student lunch. No co, shiners on federal state, wants a junior purple, Islam or just student loans. Federally insured loans are forgiven upon death or disability, but this one I don't know it depends on the clause of the contract, actually an attorney. If I were you this is today Ramses. Begging for joining us America, bad where those in Minnesota How are you

they hurry doing today that are there deserve. What's up, I want to say that I am very block the talk you and disappear. All you do for everybody does. Thank you. How can I help here I have a question me and my wife, try not to get emotional here. We ve been going through a rough patch, colonel last, year and a half hour sees me half a year to year, guarding finance to seem like we can't ever really agree here? Come too I remain the middle. I should say this looking at, hopefully getting some hope from you. Today. Models are driving trouble worrying about. Does I good areas? What budget? What we want? do a thing like that, just looking at

pretty much as agreeing like where money is going, Moreover, by dinner, she's Nazis free spirit, number nerd numbers kinder, like I did, get them because I'm Tellin ya been married We, the celebrated, are for the wedding anniversary on twenty eight show how You look in your light. Twenty and thirty in thirty three the other day- and she is thirty one vodka so the of other areas of your marriage that you just don't agree on thanks. No, it is pretty much it's mostly that fact. Central aspect of it like her mom passed away at a from breast cancer, and

my mom and dad never really caught me really about money. In my mom daddy's credit cards and my wife man with a single mom, her death, no colic. So I think that system Our normal way of living are heard. I should say I am The treasure When you go sit down and talk about this, to say the best way to live our dreams and accomplish our goals is for us to be in agreement. On the spending for the spending not to exceed our income. She's unwilling to do that yeah. She just feel to drastically feel like she's, been like arm either. I feel, like I loved my wife was on the harbour. No one, I think is being controlled. I think you're, a super nerd in her vote done count MIKE like I've like I've I've. Even though there was a sound, ok, you and she says yeah

and then and then couple days later, the changeover mine yeah near. She wasn't really agreeing should just trying to get rid of you so you didn't really have agreement from her shoulders. Bulgaria is going on. It sounds like from the outside looking for one minute, which autumn how good my inside is, but my guess is after having done this for a long time that you're a little bit like me and that you're a super nerd except your also a tightwad. So you don't like nation and money on anything and you like to tighten everything down, really super tight and she sees the bug as a way that you are using this to control her instead of somehow having a conversation were the two of you understand that her vote is equal to yours. Her voting is, and not

oh yeah, whatever you want to do honey, which means I'm gonna blow them. Thing up. That's what that means. She's not going Anything use that she said you ve gotta. She didn't really mean it yeah. You do what a reminder that crazy but stuff to work out. That's what she saw him. Waving you off show? Instead, you ve gotta, get emotional involvement to where the two of you can get the same page, because when you as you have found, When you cannot agree on your spending, you ve, not really greed on your life. When you are in your spending visa said your treasures. Were your heart is when you put your treasure to gather and that together we decide how we are going to live our life. It creates a year tea and wonders and a level of communication in your marriage. But for in order for that to occur, she's got to believe her vote counts. That's her voice counts and I you have been the loudest voice in the room on this subject.

You're not allowed person volume wise, but you're, taking up all the air on this subject, and so you probably you, go back and start with. Ok, What would you like to do if we were wealthy and shut up and listen and just get hurt dreaming about what it would be like to have? A couple of million dollars: ok now I think I can I think, if we work together, we can have a good life while we pursue that great life, and there are some things we ve gotta do to get that going and we ve you know, but we ve got to be on the same page cos No one wants to be controlled. No one wants to be a situation where their vote doesn't count. No one, I've got psychological issues. No one wants to live on beans, I for no reason just because it's mine

no one wants to live on a scorched earth and never spent money ever for anything, even a savour enjoy spending money on some things as the purpose of saving. So I think that you are such a detail. Person that you ve got these Scrooge tightened down so tight that she does not feel the room to actually have a vote and arm, and it sounds like if you can't get through this in the next week or to start talking about water, be like to have two million dollars. Ok we're how D Ye! think we can get there, were you can't get there will? I think we can only we can work together and let's talk about how we can work together and must put this down on paper, but you have to really come to the table on. You got a relation out. Women really talk about this and you got a really put your

Wisdom and insight into this, too, was not just mean carrying you along. I didn't really sign up to be your daddy. I signed up to be your husband, which means we worked together. I don't need a kid that there has to be taken care of, and if you can't get past that you probably say, marriage counselor, a new probably need to see a marriage counselor anyway. I'm not sure you guys have got the relational skill set to work through this than the sound like it sounds like you, ve, given in a really good run, track up a more those things, but that's how she's feeling it sounds to me like sounds like she's feels controlled. Unlike her vote does not count, and so she just waves. You often says well whatever you wanna do walks away and goes in does what

If she wants to day that's not agreement on a budget, and so if you can get agreement on the budget, the only way you can get that is yours. Agreement on the reason we're doing a budget is because it's gonna take us somewhere towards wealth. So we can be more generous, so we can travel. So we can have a nice car We can be more generous whatever it is. You go the right I mean whatever it is. It turned you on that. You get some money from that you're gonna! Do that? That's what you're looking for. So I thanks for the call. Joseph is up next and Joseph is and was Marilyn hey Joseph? How are you. Well. You got. How can I help. Oh yeah, I'm twenty five married. I heard no alongside five about three year.

Now. I'm fifty thousand dollars a year on my wife- and I were a hundred without acknowledging that won't do Can I hadn t you're planning? why'd. You do that in the final resolution. We can look into inside the free trial and so on, I have a car out of that one hundred and thirty thousand dollars. You just got a car in August. That's fifty five thousand dollars. And I had a feeling tat, you can exert an unwilling to sell it now. You have handled- and I told him all about it and would like to welcome the first that video yeah, you know she got anxious and pronounce she can get. You wanna get anxious that about the car. When you make sure you should make your anxious such inventions, crazy column, man, that's gotta, go! Do you gotta amputate truck buried

that thing's gone is there's no way. You prosper with that thing that you're going to live in it and I'll get. You got to go It's completely over the top, I'm sorry dear! You guys ought to be scared of death. It I'll be freakin you out of that ship. That's what you want confirmation, sometimes That puts us our that I've Ramsay Show in the books. This is James Childs producer of the day relationship Did. You know you can now listen to the day. Brandy show on Pandora, Aunt Spotify for all the ways to watch and listen to our Chopin at Daybreak Z, dot, com, slash,

money. Isn t always going. We talk about around here, get life. Changing advice on your career from my good friend and career expert can comment on my can combine show. According to a recent Gallup poll, nearly seventy percent of Americans are disengaged at work. If you dread going into work every Monday morning and you're just trying to make it to the weekend. Common show is for you, everyone has a sweet spot. You're sweet spot is at the intersection of your greatest talent in greatest passion. We will you discover what it is. You were born to do and then we'll help you create a plan to make your dream job a reality. You matter and you have what it takes. Conversation on the can com and show hear more from the Ramsay network, including the current common child, where ever you listened about gas, hey it's The producer of the Dave Ramsay show this