The headquarters of Ramsey Solution broadcasting from the dollar car rental studios. It's the Dave, Ramsey Show that is w as the status of I'm Dave Ramsey your host. Thank you for joining us, open phones at triple eight, eight, two, five, five, two two five, that's triple: eight eight hundred and fifty five thousand two hundred and twenty five days, it is whether it's in Ohio, I David, will with the Dave. Ramsey show HI, sir,

so much for having me sure, what's up so my wife and I run baby step number two and we have about thirty thousand dollars left in student loans with we hope to have those paid maybe by the end of the year, my father going to gift us about thirty, five thousand dollars worth of stock, it's in stuff like Amazon. Should we keep that as stock when he gives it to us, or should we use pay off remaining balance on our debt. That would use it to remaining balance on your debt. Ok, you know how quite decide that show quick. Let me walk you through. It there's a thing that the Harvard Investment Newsletter use is called a sunk cost analysis and it teaches you to reverse near these decisions and the one that sounds like is this? pretend you had no student loan debt. Would you go take out a student loan to buy Amazon Stock, absolutely

which essentially the same thing. If you don't use this to pay it off right sure by keeping it it's as if you bought it with student loan debt, because they are on each side of the balance sheet? Is that logical to you? Yes, sir yeah? So now your dad's basis in the stock will become your basis with it being a gift, So you're going to capital gains on gain over what he paid for it sure so I will pay that game. He will not have to pay yeah exactly m. You know you do yeah and you have a gift tax situation if somebody gives you more than fifteen thousand dollars now, is your dad married still? No sir! Ok, and are you married? Yes, sir? Ok, he can give you fifteen thousand. He can give why fifteen thousand, if he does more than that and doesn't do some paperwork and you think all the unified

tax credit paperwork, he's. Having gift tax on anything over thirty thousand sure, and I suppose we could split that up over the course of this at the end of this year. In the beginning of, exactly so he could do thirty thousand and fifteen to you this year, fifteen to your wife this year an in January. First! Do it again, ok, and so, if you break it up a little bit so that you don't get over an it's, four different transactions or at least three hundred and fifteen to you. If you want ' remove. Thirty! Do you guys in this calendar year he moved fifteen thousand two hundred and fifteen to your wife, They can't give it all to you, okay, okay and Tom C, as a tax, his tax advisor, and then you got to figure out what he paid for it his stockbroker or whoever he he every handles his stock will have a basis on what he paid for it and if is basis in there as his investment into this stock, is you know,

fifteen thousand dollars and he gives you guys thirty five thousand, then you have a twenty One thousand dollars gain you're going to pay taxes on when you sell it. 'cause, you inherit his basis. Are you get his just transferred to you on a gift, and this is uh so you have taxes of about fifteen Bob. Three thousand dollars in that. In that little example, I had sure. Ok that makes sense shout be looking at all of that, and you know, do the gift tax thing: Do the naming of it all right, but definitely I would cash it in and use it for this now that's all assuming that you're going to play So you're going to get out of that. You stay out of that you're going to live on a budget, build your emergency funding to start building wealth, because that's Give you much more wealth in this stock would have given you absolutely

it's true right here: we're not going back! If you don't, if you don't play through and you go back to your wicked ways, you know, then you just wasted your dad's money. Then! Yes, sir, that's very true, ok, cool, hey, good question! Thank you! morning, US open phones, at eight billion, eight hundred and eighty eight million two hundred and fifty five thousand two hundred and twenty five. Changes everything with what you do with an inheritance. Are you honoring, the person that passed away and left you see we are honoring the person who gave you a gift, it changes. Everything if you play through or not, if you don't play through if dishonored they're intent, because our intent was to prosper, you their intent, was to be a blessing to you and if you just simply consumed it, then you know that, and I did that my my grandmother passed away. I was in my 20s. I guess they sold the farm and there were nine million grandkids and each of us got five thousand dollars. I

still have no idea where that five thousand dollars went. So I dishonored that inheritance with my consumptive stupid, but twenty and so that's what you don't want. You don't want to have that as part of your one of your site. Magical scars like I do you don't want to look back with that that that's horrible taste on the back of your tongue called regret, and so just you know, playthrough playthrough and then you go well. You know it would have been proud. Grandma would have been proud. Papa Dave would have been proud. That's my grand babies right there right. I want that. You know people say what what Dave do? I really want my grand babies going all about, but I have to. I really want to go on that big time and, more importantly, what with the lower deck right more important to me by far

What will Papa Dave do? Well because I want I really. I definitely want to guilt trip them from the grave open phones that eight billion eight hundred and eighty eight million two hundred and fifty five thousand two hundred and twenty five all for their own good. Of course. Alright Colton is whether it's in Tennessee, hey Colten. How are you doing pretty good better than I deserve. Sir. How can I help ok, so I gotta question for so my wife and I are twenty four years old. We have no debt. We have about eleven months worth of money in our emergency fund, and we have Kurt we maxed out or grass For the year uh, ok, so my question is were moving, Knoxville at the end of the next summer for me to go to college, so my wife is going to be switching jobs, so we have an unknown salary, an unknown amount of scholarship money that I'm going to be getting so my question is: should we invest

that extra money in our emergency fund we've been looking at like like property, there so nine! Oh, who knew the man no, no! No! No! No! What are you studying uh Wildlife management, ok, and so hi you're going to make more as a result of getting this degree. I assume yes yeah my plans. Like a wildlife officer which will make you need or your degree to be a wildlife officer. You do yes, unfortunately, didn't know that. Ok, I don't know what they make, but. Interesting? I think they start around fifty thousand a year and then it's government job done it. It goes up from there so The best investment you can make, assuming you have a good career choice, is you not property, not mutual funds, and so I would pile up cash to make this dream happen,

pile of cash to make the move pile of cash to pay for the degree, no borrowing pile up cash and invest in Colton you're a better investment than a mutual fund age if you have to

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A guy called me yesterday on the air and he's like we save three thousand dollars on our homeowners and car by just shopping it with one of your e l piece on dad gum and that's money right there. So check it out Steven S completed the checkup and he says we discovered we were paying about thirty percent more forty percent, more than I have on homeowners and car with less coverage and really should have checked this out sooner. So did you get your phone out and you text check up, will send you the free stuff? It's all free check. Get your phone out text check to thirty three thirty, seven hundred and eighty nine or course Daveramsey dot com, slash check up today Wesley's weather's in California. I Wesley welcome to the Dave Ramsey show hello. Dave for taking my call my pleasure? How can I help

so I've been following your advice for a couple months. Now, I'm relatively fresh, but the it what's going on is my fiance of seven years just gave birth to our second son. Her son is six years old. And in those six years we racked up about twenty five, twenty seven k of credit card debt, All her name, I've got about Pre K that I let go after he was born, but they've stopped give me for it. I'm trying to set up a budget. Now I work full time bringing in about twenty seven k and can't seem to get the budget to quick, properly need some advice from you she work outside the home she's a stay at home mother. You have a fee say for seven years.

He's the one that's been putting off marriage because she's afraid of taking that next step forward, Anneliese banning her families, that's wild man, ok, cool, alright I'm sorry, my painter get off a ladder. Okay, so what do is put you on every dollar budget. It's completely free, alright,. Hello, okay and I've already done that? Okay, good, so I've got it all written out every month, you're doing that, are you going over that with her. Yes, where I'm slowly starting to get her to come around and get on the plan as well, because we're my cabin to be the sole provider and just not know where the money's is going. So I want both. On board with the plan man make much money, so you gotta really make it stretch. I mean family of four with. If you are married, a family of four, with twenty with two in twenty seven thousand in California is probably right at the poverty line.

Yeah and luckily we don't have any rent to pay 'cause we're living with her family, which is uh, click environment, but at least it helps us save some costs there, yeah, ok! So how old are you I am twenty eight. What city do you live in. I live in Marysville, which is just outside Sacramento area. Ok, all right what is your long term career goals, that honestly? I don't even know what I would like to do. I just see myself jumping from job to job until I find something that sticks and going to provide for my family, ok, well I've got a son that your age is: twenty eight ok, So I'm thinking of him right now and I was thinking, if he was in the situation he sat down said bad when I have a cup of coffee. What do you think about this? Ok, here's what I would tell him

There's a lot of statistical correlation between people winning with money and their overall quality of life in getting things in the right order about getting married and having kids. You got some of that out of order already. So let's get that corrected. This is what Tell my own son. Okay, you do what you today, I'm not trying to hurt your feelings are not trying to be mean to you. I'm saying I love my son, and this is what I would tell him. Ok, then the second thing, I would say, is you're starving to death. And you're living in a toxic environment that you're forced to live in because you're starving to death, and so you desperately need start setting some goals and having some clear vision for your life on your career side. Because, where you live, is not an inexpensive place to live Ann,

make any money, I'm not picking on you and I'm not talking down to you, but you know: dude your life change dramatically. If you made seventy five thousand dollars a year. Obviously you know that, and so what are we going to do and let's spend some real energy. Some quiet time on the back porch with a cup of coffee and even if you have to go to the neighbors 'cause, there is no quiet time in this toxic house sit on the back porch with uh. Coffee somewhere and go okay, oh god. What am I going to do so that when I'm forty two are I'm too right now, when I'm thirty, eight I'm well on my path to you know to earning. A considerable amount, more insight Thing that I enjoy doing in that, I'm gifted it doing. What is that and you kinda have to brainstorm that a parade that, through an just, have some quiet time and watch the mist, roll off the river or whatever, and and kind of get this dialed in. But you know

just to go down to my lake House, for instance, and take a yellow pad and just spend a day with me and God walking around just talking to talking to him and You want me to do this year. What you want to do next year? What do you want to do? You want me to do ten years from now and thinking out into the future 'cause you can get caught up in the day to day diaper changing and the date crazy, mother in law, stuff, an all of a sudden. Look up in another decade- is gone in your sitting, exactly where you were. You got it something that gives you a vision and pushes you out into the future and start setting some. Your goals because a lot of what I'm hearing from you is. You know mathematically, you're, not doing a horrible job with the money I'm coming in, you just don't have much coming in and out for you to have a plan that says I want to be one of those and I'm going study, these three things so that I can be one of those- and to get that business, because that gets me out of my mother laws house that gets a position that we get rid of this debt. All these all bad debts. I can go back and clean them up. I can really get my lot. My freaking life together here.

But it's going to require a very careful tension all steps If you continue to do the same thing over and over again and expecting a different result, that's the definition of insanity, I'm going to jump from job to job, to job and hope this works out. It's not going to workout, it's not going to workout. You need a path and I'm going to fight and I'm going to scratch and I'm going to claw an I'm going to grind and I'm going to hustle to work that path. And that's going to get me there and that will change your life. That will put you into classes to take certifications to take degrees. To get that, I put you into mentorship programs. Apprenticeship, programs, it'll, put you into all kinds of things that, because that's what it takes to go that path- And you ask yourself what has to be true? That's not true today to be one. When I'm thirty eight and then get about that business and serve that'll change your

because you have all of these negative variables controlling you right now, and I really really want for you that you get to control all these variables instead of this lack of money, the bad career, the bad housing situations by old, bad debt. All of this is pounding you and I want to get you up on top of it where you're pounding it and you're making it behave. That's what coffee would sound like between me. If he came in with your exact set of problems, and I would tell him to paint her get off the ladder I really would cuz, I just did

this is the Dave. Ramsey show

so a lot of people get really upset with me when I tell someone to get married, so it's just kind of I understand yeah, there's a moral component to that. For me, I'm a Christian or a spirit, component to that. For me, I'm a christian that is not what driving the discussion as much as the practicality Actually they all do. Work together, there's a reason morals have. Are there there's reason: spiritual guidelines are there from God, but, aside from that, whether you're a person of faith or not the data points are there and we kind of walk you through this professor Bill Galveston, who was President Clinton's domestic policy adviser and a senior fellow at Brooklyn Brookings? They did research.

And he said, listen to this in America today in North America, you only need to do three things: to avoid living in poverty, statistically Mary before having a child. Have that child after age, twenty graduate from high school before you do any of that graduate first get married, be four k have kids after twenty and ninety seven percent of the time you do not live at the poverty level. Statistically, those are called data points. When you get simple things like that in the right order, now, if you didn't do that, I'm not

mad at you and I'm not shaming. You. I've done a lot of stupid things in my life, but don't get all pissed off me and call me all these names, because you condemned, because you got stuff out of order. The data points say this is Brookings Institute. This is not the catholic Church or the southern Baptist convention. This is brookings. Doing statistical data on Alice. Ninety seven percent of the time that you graduate from high before having a child, get married, for having a child and have the child after age. Twenty. You will not live your life at the poverty level wow. Get those things out of the order? It expo really goes up that you will be

living at the poverty level. So that's why I talked to a young man like that 'cause I care about him and I know what the data points are. These are statistical I mean. If you know anything about statistics on me, people when they're doing elections like presidential elections. If you get anywhere in the high for These they start declaring. You have a victory right. If you gotta, eight percent. You know you're, probably going to be president. You know that kind of thing. Fifty percent. This is ninety seven percent. That's like every time stupid! That's what that means. Another report shows us that, focusing on Millenia Millennials, the same number comes up: ninety seven percent of those who follow, Success, weak ones are in the high school diploma work and

before having children will not be poor as they enter their 30s, and that is true of all ethnicities, and this another study, only four percent of homes with a read mother and father in the home are on food stamps. Twenty one percent of the homes where people are cohabitating and twenty eight. Of the single mother homes are on food stamps, only four percent We're a married mother in a married father are in the home with the child, there's a direct tie between how you view family structure and your economic benefits. There's a direct data point to this. And it goes on and on and on and on and on from, there well

two percent of marriages end in divorce. No, they don't number one that statistics are straight up bogus, people made that up and it's one of those Snopes thing you can't find it. You cannot and the piece of research that says that what you can find is, if graduate from college? If you generally attend a house of faith regardless of the type of faith jewish Muslim, Christian. Whatever You regularly attend the house of faith. You graduate from college you get married before having children. You have chilled after you graduate from college you make. A thousand dollars a year. Household income or greater. Your divorce rate is only Four percent These are all variables you can control the divorce rate happens among different oh show economic settings, people who make different choices in there

lives and they get them so painted into a corner and it blows their marriage up, but there you can keep going from there by the way. If you want to just keep studying all these, caters of a state character based life and you all I see that tide back to economic data. We I saw it when we started studying millionaires with ten thousand millionaires we studied in that research project we saw again in there now we weren't researching to find the socio economic decisions and that the the so called success! Sequence! That's in these! You know graduate high school, then get then have kids after twenty, that's just the the success sequence has been done on several projects, but as if you want you know, here's the thing you make the kids and you make under thirty thousand dollars a year household income you're right. Poverty level. According the Federal Reserve record the FED statistics of what the poverty level is

you're single you make seventeen thousand dollars a year you're at the poverty level. Now is the bad thing now, I'm one year I made six thousand dollars. I know how it feels. I'm not I'm not talking down to anybody. Redneck hillbilly guys I get it. Ok, I understand I've been there. I and that guy at times I've done all kinds of stupid butt stuff in my life, but the thing is there's a whole lot of the things that happen in your life, the majority of them that are holding you back. That are your choices. There, your choices, substance abuse your work ethic. Your decision to work while you're at work, your decision to tell the truth and be a person of integrity, Your decision to not steal these, all decisions that you can make and they affect the course of your life. They affect you this week next week,

and ten years from now. And there is a high correlation between those kinds of character based decisions and whether You succeed financially it it's not merely a debt snowball guys, if you, I cheat steal sleep around on your wife, the debt snowball, help you much. 'cause marriage is grand but divorces. Fifty grand you get got everything in half when you do that and start again. Try cut half about three times and start again, you gotta a whole lot of stinking money to offset that puppy. It's cheaper to keeper baby I'm telling you these life choices are real, but is politically correct speech nazi, culture that we live in, we're not

how to say out loud that your character impacts your life. Well, I just did. And there's seventeen million of you listening an if you're If you're really upset with me right now, it's ok, you. Coalition. Listen to somebody else. I understand I'm not mad, but they all this. The Dave Ramsey Show for a reason 'cause it's my we can show if you like what I'm saying and you want to say something Else- she will show this

Is the Dave Ramsey show scripture of the day. John eighty three Jesus said: if you hold to my teaching, you are really my disciples, then you will know the truth and the truth will set you free.

Hum said formal education will make you a living self. Education will make you a fortune amen now, just cap. Some of the things that were just saying I'm. I do You guys to hear loud and clear too: I'm gonna hold you to things that are going to cause you to win 'cause, I care about you, but in no, am, I going to be mad at you, having done something stupid, because I have a phd in the U M B, I know what stupid looks like up close and personal. I've done it. So if you've something that you know brought harm to your life, I'm not mad at you, I'm going to help you with it, but I just you know, you guys are out there who don't want anyone to say out loud that choice, have consequences, and in some you come up with some kind of not left wing terminology about being woke or something you're, just probably not going to like this show, because I'm just going to tell you the truth:

It hurt your little feelings. Becaus! I care about you. It's not going to be. I'm not here to shame anybody, I'm going to condemn anybody, but I am shaman condemn choices that don't bring you a good life. Because I've done that to me when I made bad choices, Pain in my life and shortage- and hostility and everything else an I I'm exempting more than you are from that, so we're going to work through this together, boys and girls. That's how this works. Alright, changing this moving on who's on the phones looks like Jessica is up Jessicas in Florida, high Jessica. How are you good. How are you better than I deserve? How can I help you? situation. We are just looking to saying about marriage were not married. All we've been together about ten years uhm, but I have to,

Of my children and we ended up taking and for you didn't needed help. Wow big heart, big heart Ok, so we've had them about three three one slash two years. I don't foresee after leaving us are you? Are they foster, or are you adopting permanent guardian state, Lara kick in and help you in that case, not really. No. No because it can. I got you. How can I serve you today So we have. We had a piece of property of our uh that we were living in an when we took the kids in we had to move. You know we had twenty always make decisions taken or not um. We we up and moved basically with our house is too small to hold them

and nine right now at the point that we need to sell it as soon as possible, because we are renting. How long did you move? I It's been exactly a year. Why did you not put up for sale immediately? We will, hoping that it was you're now We're going to be able to build on it, but it's become more of a problem it I call it the black hole, property, so it's been sitting empty for a year. Yes, ok, yeah. Let's get a sign on that thing like by nightfall. I've gotta sign on it good with a good real estate agent. I'm. Yes, he seems to be doing pretty good. I just now actually learned about your. He, okay, all right So how long has it been up for sale for twenty days ok, have you gotten nibbles.

I've got yeah, we just finished showing what is the? What is the price we're asking more? Ninety five, oh about seventy, third, an when is the foreclosure is it scheduled, yet it now we just got a thirty day notice that you're behind or thirty days before they start the foreclosure r thirty days before they start in Florida. How long does that take. According to the real estate attorney that we spoke with. It could take three to four years. No, no! It doesn't take three to four years to do a foreclosure in Florida. I didn't think so. I think we need some more information. You probably could just do a simple Google search and learn. I don't know what it is in Tennessee, it's thirty days but yeah, but Florida is, has some unusual real estate law.

It's a little bit longer, so the bottom line is that we need to find out how long this fuses it's burning towards this bomb like a Wiley, Coyote Cartoon, ok, Yeah 'cause, I don't wanna, lose it exactly because we're going to cut the price progressively until it sells to protect the equity, because if it gets foreclosed you get Zippo, yes, and if you sell it for one hundred, you get thirty So we're selling it for something that we're selling it for something before the bomb goes off agreed, yes, so do a little bit more research talk to you real estate agent and see if he knows where she knows anything about foreclosures in your area. I don't know the Florida law about. I used to buy foreclosures overtime in Tennessee, so I know Tennessee inside and out, but Florida in California have very different real estate laws. An so Texas has very different real estate laws.

Three states bottom do so: you'll want to learn what it is. It's not three four years, though, that's some kind of bogus, so my telling you not to worry about something that you do need to be worried about. I do think it's longer than the days in Florida, I think it's probably more like a six month thing you've got, but you progressive each month drop the price on this and run a reverse auction until it sells you get rid of this property? That's what it comes down to as fast as you possibly can, and you don't have to give it away for one hundred, Today, by two days before the foreclosure you sell it for one hundred thousand, even if it's worth one hundred and ninety five, because in two days is worth zero, so you get you While the getting is good, but let's run a reverse auction figure.

Your timeline is and then divide it out and start dropping it. Five thousand bucks ten thousand bucks a month until it sells, and to get rid of the black hole for money and put some money in your pocket to help you take care of these babies and help you get housing situation situated to match. Large heart and it's a good thing. You're doing your sweet people. Alright Peter is with us in Ohio, hi Peter. How are you good day? How are you. Better than I deserve. How can I help. I'm a little nervous. So I kind of want to get this out right. So yeah, ok, no truck not going to help. I'm a. I just found you last week on Youtube started listening to podcast, I'm not driving home from my hour and a half long commute from work, I'm still in the car. As we speak, I got off an hour and a half ago anyways uh uh. I started the the baby steps I have a

on baby step to bringing everything to my wife right now, I'm kinda bring in your basically I guess I want to know. I'm kinda, I'm kind of just trying to make doing it right, but And what is your question before I run out of time? I I just is my is my commute digging into my budget too much sure spent three hours a day on the road. It's eating the car, it's eaten gas and it's eating your life on what prohibit you from moving closer to work that was a promotion actually to go up there. Ok, so move we have family here, I'll, take care of my little guy move. Your little guy never sees his dad three hours a day in the car.

That's not a life man! I wouldn't do that. I have minute commute, so I have nothing. I got nothing to compare this to, but and the only thing I got home other than sherron soshitsu. So nobody our little guy at worried about it today? But man I mean You don't understand how much of your life is being burned up in that car and it's not a panic. You don't have to do it in a heartbeat. You have instantaneously, but you do need to make a move sometime very soon, either out of that job, or up to that were that job is it's untenable man? This is life snow, fun at your place, you're not having fun. That. Would that be driving me crazy. I mean you do what you want to, but you call me and ask that's what I would do. I would be out of there hey thanks for the call That puts us out of the Dave Ramsey Show on the books thanks to James Charles R producer Madison filling in for Kelly today is our

phone screen an associate producer. I am Dave Ramsey. Your host will be back with you before you know it in the meantime, remember, there's ultimately only one way to financial peace and that's to walk daily with the prince of Peace Christ Jesus. This is James Child's producer of the Dave Ramsey Show. Did you know you can now listen to the Dave, Ramsey Show on Pandora and Spotify for all the ways to watch and listen check out our showcase Dave, Ramsey, dot com. Slash

hey if you've got questions about retirement, investing on becoming an everyday millionaire go bigger and broader, with my man Chris opened on the Chris Open shop, 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 Open show. Where were you listen to podcasts? Hey, it's Jay. Producer of the Dave Ramsey show this