Live from headquarters, Ramses away from a dollar. Thirty owes its that day. Ramsay show that is down casual gaming and apply it all by mortgage has taken the place of the Bmw as the status of John I'm Day rams your host. Thank you for joining us, open phones, AAA eight to five five, two to five: that's AAA eight to five five, two to five. Nicole, is with us in Atlanta That over him, she shut.

Hey. How are you today or what's up I have roughly sixty four thousand dollars in debt. Income before taxes around fifty three thousand at work. Company right now that currently have stock vesting over the next I'm trying to find out if it's best to wait and sell that stock. Best thing or sit on an entire Canada. Well now I would anything that is not retirement. One thousand dollars starter emergency fund, while you're on baby step, two paying off your debts and it as fast and as early as you possibly can Now, that's assuming, of course, you're going to be on your every dollar budget you're going to actually do this stuff you're going to play all the way through. If this plan, then your advice is probably bad advice.

But if you're really going there- and if you really don't do it, if you really got punches, that knows then yeah definitely cash out every that is not retirement. Ok, so let me ask you about in the company, does sell. They sell a portion of the stock to cover the taxes. So if I sell whatever is left in that, am I going to be taxed again or only be tracked if it is gone up in value since you received it on the amount that is going up in value other their selling off enough to cover the fact that this is a benefit. This is income to you, and so they pay their taxes. Are they with her taxes and turn a man like there with you, actions on your paycheck right in that are doing here in terms of your income. This is part of your income, but additional that let's say you got that stock vested after they took the taxes out three. Ago and doubled well, that amount that it went up would be taxable

In addition, what you ve already pay to some extent it does not give them a good job, keep it up kid Our eye Catalans Weathers in Denver Pie Kalen welcomed that I've Ramsay show how material Thank you so much for taking my call. My husband and I have I'm going back and forth on what our next step should be were completely debt free. We have our emergency fund and all of that set up in Ark. Can is, should we focus our intensity, and paying our mortgage. Faith or land so that we have cash available when unity becomes available for us Youtube purchase a small like five to ten acre piece of land and trying to start hobby farm, that we want to do in the long run, form something you're going to build a home on. Yes, we would build I'm from scratch.

Which is why we want to buy a piece of land and not buy a home that already has acreage and they save for the land package for the land and pay cash for the building. Is you go? Shall your home rent finish the building that stuff whenever you gotta, whatever processes there, but you're gonna end up living on this property. The answer would be? No if the hobby farm it's not gonna, be lived on, because at that point, hobby farm as a toy second home a second investments. It's not your primary residence, but this is a transition piece for your primary that's so it does make has to go ahead and save up and pay cash. Call me to pay cash for the land. That's part of the You know we have had on the about one side and then the other side as well. No

come available over the next five years are ten year rush by what I believe is you're gonna instead of pay extra on your mortgage for your baby step, six you're, going to end up drawing your mortgage picture, getting ready to buy some land for cash that you're building up that fun. To do that, the same net effect five years later, when you move into the house, your long term plan. Is you effectively or paying down on the mortgage? That's why I said do it, Paul's, weathers in Washington, DC, Hey Paul, welcome to the diverse energy show, Anko better than I deserve. What's up I live and I are living in Washington DC. We make seventy thousand dollars a year by then our job provided living expenses, though I'm not the rent and utilities in all that, as well. Should we take our fifteen percent based off of our 70s,

and throw everything out that bathing for what will eventually be our house? or should we take our fifteen percent based off of what we make calculating living expenses, interesting idea concept behind all this is once more. That accept your home and you got your emergency fund implies baby step. Four, then, is fifteen percent of your income, cellular retirement, which is what you're talking about It's not twenty five percent, it's not two percent! It's a good solid come on a going towards retirement while you reach over star safer, forgets college and reach over and after how shortly so that the idea We're gonna get a really good, strong start on retirement and so there is no magic to fifteen percent you're, not gonna fail. If you do, fourteen percent in interest meaning a good, solid, start

when you run the calculations out at almost any income range, it works out beautifully at fifteen percent. Those where we came up with it was due in case studies but So all of that to say it doesn't matter, because the concept is punch returned really hard before you move on in the baby steps. So if you want play do fifteen percent of your actual income. I mean your actual cash income if you want to fifteen percent of the overall benefit package which includes housing, both are logical, logical argument for either it just which are direction. You guys want to go, but I would I wouldn't do if you can do it on the seventy percent. I wondered time less than fifteen right right well rounded up when you're doing your calculations and all out of its fifteen In foreign and fifty dollars rounded up to sixteen thousand, you know that kind of thing

our whatever? The number is no your income but overall, but that's the thing. Look at that and try to calculate that through an you, don't run some numbers out each way and in Europe- and I am It was from future value calculations and if I do, How much I'm going to end up ten years from now much up with ten years from now and in the direction I have this direction, I won't how long you going to be this job with the housing furnished time horizons build your business plan so to speak, for this money or for these, for? Not even if you look in future Insta, Friday? It gives you looked out there, five ten twenty years. That gives you wise answer friday- always give you an immature answer. Those people who live there- oh god! It's Monday always struggle

is what I Ramsey Shop about one point: six real in dollars and student loans at one point: six trillion: if your drowned, there are options. I want you to consider refinancing your high interest student loan from splash financial.

Right minimizes the interest that builds, which helps you actually pay down the principle of your loan and helps you get out of debt faster. It's like found money and right now the rates on splash financial are the lowest lay a ban all year see for yourself visit split. Financial, dotcom, Slash, Ramsay, that's splash, financial dot com, Slash Ramsay Nathan is whether the lab huge off they made them. How are you still find taking good? I can help you to speak. Can I have a car loan that were about three thousand dollars upside down on my wife? Is apprehensive towing the car, because Then we won't have a car to show for it

thousand dollar loan I told her we could buy a beater temporarily. Our location we do want. Need something reliable, because it helps our location. We live Very far from a lot of places and and traveling is, is the sort of firstly, you have one hundred year, one vehicle. You have one vehicle. Yes, and what are you are on your car, twelve thousand and what your household, household income of it- is about seventy five thousand

Your house and this car credit card dead at about sixteen thousand now annulled in guinea. So you don't think it's some think. It's the problem. Cutting off your credit card tonight would be a good idea. That two weeks ago, a we're on track. Ya. Think the two of you get on a budget. So we have eighteen thousand dollars. In that new said, you make seventy five. Seventy five! You make seventy five we have. Eighteen. If I look at eighteen out of I think that sounds like a one year deal to me. Rice and beans, no no life and all that You been doing probably don't happen I'll be happening is is a necessity for now just to come to lose your nor in a very, very remote situation. Understand I'm Jochen with you, but my point. Spend as little as we can possibly spend so that eighteen

Seventy five becomes very double by the way that fifteen hundred a month, you can do that perfect. Like one year, your Hunter percent that free you keep the car. You don't keep the credit cards Eric Good Job man, you got this open forum eight hundred and eighty eight eight hundred and twenty five five thousand two hundred and twenty seven LOS Angeles. My call shut up, I'm a thirty six, your professional I'm recording a lot of money, found myself a position as a professor at a private university For this event, not tenure and guarantee is not guaranteed. Your dear, long enough to qualify for retirement benefits with a ten percent match what do you mean? It's? Not it's not a lot.

About thirty thousand dollars a year. What are you doing or you behind the scenes performing lightning Mcqueen Because of all my one thousand and ninety nine I'm represent your income. But I mean because I have to pay out and then now my auntie member, all old, my outgoing ten line under expenditure associated with the with the turing, Andy, recording and so forth. Ok! Well, that you're running a business, your income, minus urge benches, is your net profit and that's war lookin for her. Ok, I gotta get to pick and how can I help you? Can we ensure that but like a lot of people, I found a man who I love dearly and he has about sixty thousand dollars in student loans and credit card debt, and we are,

She married nine days and I'm currently are enrolled in your FU online course, which I feel like it's the best premarital counseling you could have ever asked for. So thank you for that because my position at the university isn't guaranteed. I curious if I should Peyton retirement, while I can or hold off in and help him pay off his debt once you're married, we have there, we have an income Mary right now. There's you in. For today nine days you said: nine other should have ninety, ok, yeah, so no mandate when you come back from the honeymoon it's week. It's now french wee wee you know, and you just everything's us and we have that we need to clean up and no, I would not either have you or starting retirement until we are debt free, as a couple,

damn you also we're gonna use all of your assets and income and you're gonna use all his assets and income to accomplish our combined financial gulls. The old, the old marriage vows, then the old action days and still some people use them, which I love them, they're, beautiful or poetic for better or worse and sickness and unhealthy heard that here's what the bullet no prior actually says unto the all my good worldly goods. I pledge. And that represents the combining of our worlds. And now and the preacher, and then he says, and now you are one we have heard all that, probably maybe in a movie or something, but in an action that that's that's that there's a beauty way of thinking about that from a relational aspect and here's the interesting thing from an empirical standpoint from a research standpoint, the data all indicates that people who build wealth work with their spouses.

But not against them, and it isn't and they don't have a roommate. They have a spouse. And meaning that we are not running ever to separate lives under one roof? We're gonna run this as one unit of in I'm one unit of assets, one unit of debt that we're going to clean up shop all about the site. One more time know whenever you're married. It's our debt, we're going to clean that up before we start retirement you'll, be fine, that's the shortest path to wealth. Anyway, thanks for the call open phone to eight hundred and eighty eight, eight hundred and twenty five five thousand two hundred and twenty five Katie's in Baton Rouge. Hi Dave, I'm so happy to talk with you My husband and I have about a twenty five thousand dollars emergency fund, but we also have about ten thousand dollars in debt, so we could I'd like to say, we could write a check tonight and be done with it, but I am so scared

pull the trigger. I just I sleep so much her at night knowing that that money is there in that emergency, but I am really contemplating going ahead employing the tanker wondered. If you did, you love it. Well, you're a cop successive her and you get from money, security, and there's nothing wrong with that. You ve dental via that in Europe in you, know yourself well in its beautiful that you know yourself. Ok, so I think that the third key don't you understand who you are with money, is: is the plan that causes your neck we'll strengths and fears to cause you win. So let me tell you what that looks like and this situation what your household income. About two hundred forty eight and you have pointed out that our future name

Well, that's just our emergency cash. I've been in retirement, you have money other than retirement and those twenty five Pittsburgh are checking account and savings set aside for a big expansion. That we're about to do On the house, labelling Pairford it keep your merchantship on a bluff. Small scary, it all. I think that solution has not scary at all, but if, if we wanted to use, and you don't need to. I think that's what you do, but if we wanted to go back to their part of conversation we're anew less about you. I would use the twenty five, even if you had no other money- and I would you your fear, like other people, use them, intensity to get out of debt. Hey, I'm gonna, use your intensity, rebuild your emergency fund, let your fear being.

Out of eight or to shut everything. Overspending household down quarter of a million dollars in LA mailing, your name but sixty five grand pleasure of retirement how long you been make it a quarter million. But it's really hope not long. Does Europe sale? Not yes, I do not not very long. You Eddie happen in babies have to end

Frankly, we had invented the compromise that we got, so your fear can give you the aggression you wanted if we needed the use that to motivate you to rebuild your merchants. She fought, but we don't need to your situation for gonna use your aggression to rebuild you're, expand the house fund, not fear, yet have you definite right to check that it at it? This is that I am shocked

the care in the lobby of Ramses solutions. A guys. I worry, welcome! Welcome more! Do you live! then Katy Texas used an area. All right. I will welcome to Nashville, and here they do. A debt breached green ass love at how much of you guys paid off. We paid off Seventy four thousand in three and a half years while and your range of income and that time start about one hundred and fifteen thousand to two hundred and thirty, We all do for a living, I'm a fire protection engineer and supply chain management, nor can show a cause your income to double. During three year we worked hard to our motions when they were available. We move from Seattle, the Houston for promotion and lower cost of living. Ok, it is slightly and all

trinity around both great careers, yeah and also Dave. I am something one of our biggest bumps. Was when I decided just to go into my boss and ask for a raise This went in and I laid it outside. I feel like I've made I've made my mark. Your basically other work a lot more than their faith, They gave it to me good now, good for him and good for you very good. So serious money what's gonna what kind of debt was the hundred and seventy four we had a lot of student loans and then two cars medical bills personal loans, credit cards now we're leaving the warm, no yeah real, normal, normal plus a little, because you had a lot of their while little bit of

We think, live in the american nightmare yet and three and a half years ago, some kind of a switch flipped. What happened? Well, it goes further back than that which is, normal for people you talk to, but wanted you to know how much of a change you're making an AR legacy. My parents are really bad with money. As a matter fact they declare bankruptcy twice before I left the house and at the age of twenty four I declare bankruptcy. Because that's what I knew and so really when I hit rock bottom, there was a switch and I started studying budgeting and things like that. I had heard of you yet a couple years later we got married and a few years later, we friends, Zella trackers, fairly brand new and so it was shocking to us when we ask them. Why and that's when we heard about you around the same time, we also found out that I was going to be very difficult for us to have kids, and so we

and though we ve, probably gonna, have to do in vitro, and we also learned that we had all the steps that we wanted to pay off, and so we had to balance cash flowing several round Invetro along with hangout this Additional one hundred and seventy four. You done some of that hospital. A lot the doctors wow, what a process unbelievable so three and a half exactly there. What happened to kicked you into this hygear cuz? That's when I took off right, what we had kids, we didn't know how long she'd still be working. We want to make sure we were in a place where we'd be comfortable on just my income, and so that was a that, for me at least one if you don't want out of Europe started listening the shower, what happened yet we went through financial peace. The first we badly medium Listen to your podcast, a lot,

tunnel, dad I'm a you were fired at the number, show it yeah we rather lightly time. Thank you, proud of you. Well done. You're gonna feel great. Do you have supplied me place to be mean like a relief to wait up shoulda reds, very emotional, I feel, like I stopped a chain That was going in a really bad way. For my cats, you did you broke a firm weaker than we did that can be done We just that. We have the rights we have the right to choose and we can choose I do not want this like that, and here we go good for you. Well done. So. What are you telling me? he's getting out of debt is a hundred and seventy four thousand paid off in three and a half years, you're an export yeah just stick. With that. I think continually reminding yourself of your goals. We listen to the cds several times throughout the process, we kept listening to your podcast to keep that that goal in mind,

for us. I think also paying your timing us that when you're during the Lord that you're willing to sacrifice, he will open up avenues for you that you don't even have any idea can open, Well, I mean you take on and fitting does not encumber to earn. Thirty thousand. I think this time there's a good rather does bless you. It does bless you once you begin to show that you can handle the blessings. Our very well done when your faithful and limited you'll be given more manage for you guys who are your biggest cheerleaders we are kids were very involved again we're a couple. People tell us that you know Baker Do it spend and for us that mostly we, people around us who his parents were really supportive. His brothers One is pretty supportive of s cool serenity. Kids. We have four four while yeah, so I work

Another time yet here we have a global that didn't via while other beautiful, they're just want a picture of them up over here on the Youtube feed. So Merrell twins, Rihanna and then I v V Jordan and Camden is too he thinks his name is Bubba. His name is Camden I love very good. Will congratulations! You very proud of you will get a copy across organs book for your retire inspired. The next chapter in your story, that that chapter is closed permanently on this family get and now we're going open, another chapter in Say: millionaire status, you'll, be there no time with his income and no debts. I'll, be outrageously generous along the way I suspect you might end up paying for in vitro. For somebody someday

so that you could happen. You have some extra money lying around. You go, I'm just gonna. Do that! That's pretty cool! You guys were special. I'm proud of you Congratulations ever Kara, Houston, Texas, honoured and seventy four thousand break up three years, a hundred- and Dana hundred or two to thirty in income Zira debt British grew three two one well done well done That's awesome. Then I guess from Blinds Dodd com there, the number one online retailer of cost window covering GM free samples, free shipping, new problem, Every month use the promo code Ramsay to get the best deal Freddy's

ask. Your line. Deva been offered a payment plan to get or Malone's cut in half, but I don't have. We step one done yet should I can you doing baby step one or pay this loan. Over the next year and work on one. When I have extra baby step, one Freddy's, one thousand dollars, I'll. Take you that long. You need to have a garage sale. Give me put some stuff on Craigslist. You need working extra job baby step. One is a one month, affair, dude and you can take this deal and start paying months on your regular payment, Europe pay payments on everything anyway and then start your baby steps. So pay minimum payments on everything, start your baby steps and then you could this loan with the payment deal, snowball and you knock it out as quickly as you possibly can you work your way right through that and that's how you do it, so

good question: if you're thinking about selling a home, one of the biggest challenges is finding a real estate agent, that's an expert real estate license. House a year to houses year. You do not need the list, your most experts that's. That was somebody who does not have any more experience than that. It was not getting it done. So that's how you do this. This is why we started our endorse local provider programme, our l peas. We endorse people locally, the problem, in this case with real estate, and these are the top percent of agents in your area. They are awesome, their high octane high protein I know what they're doing they're going to get sold and get a solvent most mining or help you find the house in this crazy market and get the best possible deal representing check out.

Ramsey dot com click elp for real estate. This is the Dave Ramsey Show Colossians forty six, let your conversation be always full of grace. Salt so that you may know how to answer everyone.

And exert two ways to enlarge human behavior. You can manipulate it or you can inspire it. Oh that's! Good son he's got some good ones. Michael's weather in Cleveland, Ohio, hey, Michael welcome to the Dave Ramsey Show, I think I have an easy question for you. Is it wise to stay for Christmas and supplement and Hsa while in baby step? Two? Should I cut everything Do an Hsa savings while you're in baby step two. Not very just say savings until you finished baby step. Three, you're, going to cover that with an emergency fund, with and later on, you'll use the power of the Hsa savings, and so on

Christmas, however, is right on your doorstep, and you're gonna have to put that in your budget. There. You had a budget for that. Right. Now is right here in front of you, and you know how it will show you going to do it. If you save for re. I was gonna. Do scraped together a little bit, have you ever hear and then next year my work the credit union. So next year I was going to put weekly money in there to not do that again next year. That's fine, but you need a polyps money right now, because your scraping it together. What you going to do in any way for this, for this Christmas is right in front of you it's here, You know you ve got a pile up, monies fashioned again and then going to start on a weekly thing. That's a funding! the old fashioned Christmas club at the Credit Union Union just weekly and then then Christmas is taking care of it. Send your budget you're already setting

then, and that's fine and then just didn't, attack your debt snowball from there? It's how I would do it. So thanks for joining US I am also talking about age essays. I marry her, you I'm well Thank you. How are you doing better than I deserve? What's up? I also have an eighth of question time. I'm not sure if I should max it out. Because we're just considering open enrollment right now in one and or if I should be putting that My house, ok, you're, dead, freaks at your house. You have your emergency fund. You need to have your emergency fund in place and then Yes, I would max out an Hsa after that or or put something in there,

Is your your your family's health like? How much are you dipping into your deductible? No, that's the other thing I'm! I would really have to go. Look at, but we're trying to get more But two years ago I had a heart attack, so yeah, I'm feeling other's concerns. There now I'm on a ppo, and I could I want to change the Hsa. Maybe that's not smart. What do you think? less you haven't. Unless you have appending health thing that you know you ve gotta do does you're gonna jammed comfortable whatever that deductible is on that hsa You know you're going to get. The Hsa is a cheap, high, deductible, cheaper health insurance policy. And the high deductible gives you the right to, but not the mandatory shaving, your saving into a savings account called health savings account.

Anything in the House Savings account, you can just take the insurance, but then muesli, if you have an event and your deductible thousand dollars you going to have to cover that right, If I have a key turn that there is a medical problem a published. I repeat now, for one more year. Who am I here because you don't have you don't have your own not have highlighted that you do not might cover the Luxembourg. Now, ok, right people one more year, but the money on the house on the house put it in savings. Are emergency fund. Is too short? Ok, can I get you and she found up to three to six months of expenses and then you move on and start your retirement savings in your kids college. That's baby steps forward. Five kids get me out. I can move right into a

I brought into the house okay, once you're, putting fifteen percent of your income into retirement, don't start that Do you have your merchants who found emblazoned shy right now and only six grand agreed yeah. So, let's get that thing built up to where it should be three to six months of expenses then we start a 401K and then next year you could flip over to the h. And you know, You'll have a nice emergency fund to cover that adoptable. You could start funding the ages. The action Health savings account and take advantage of the cheaper health insurance premiums as well, and an that's what it's kind of like pimples on your car in your homeowners. Money on your insurance in most cases, but you can't do that. You've got a proper emergency fund to cover those higher deductible. So a lot of people run around two hundred and fifty dollars deductibles on these things,

You know you round up to a thousand. I carry five thousand on my car's help. My car insurance premiums way way down and that's how you take care of this. So a 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 Steven is in the Ramsey baby steps community on Facebook joint that will let you in the Ramsay Baby steps community understand that you pay taxes on the Roth area front, so a gross tax free and that a treaty 401K until you retire question. Is that much of a difference maybe I don't fully understand it. Yeah cuz Some depend I'll jar, eighty to ninety percent of what is in your retirement again

is not money. It's the growth on money you put in an Enso you put one hundred dollars a month in four hundred and thirty for forty years, and he got a million dollars in their evil. They put in you now, almost none of that. A hundred thousand dollars of it is what you pay and in the rest of that is growth. Manhood thousand pay taxes on nine hundred thousand informational you're, not gonna pay taxes on nine hundred thousand Roth IRA, so sample for every million dollars is a three hundred thousand dollar swing in taxes and so yeah. There's a lot, Roth IRA is a slam. Dunk Roth 401K is a slam. Dunk! There's no question that that's the route. You go good question text Michael? How are you in front regulator country, how are you, sir, better than I deserve? How can I help?

Well, we are on. We will finish baby step for Friday, babysit three very them. I don't know, maybe three Friday gripe and so I have a question. I have a really smart wife like ridiculously smart and she's, really hot, but really smart. How do I save for? Christmas for her for her or get to her when she's in charge of the budget and sees everything that I spend and cash for sounds only those are about sound. Like there's a budget line item forgives. But I don't want her to know how much the gift is in a how and where I'm getting from but she's going to how much it is cuz. You were green on your budget you're, not helping me sorry, I'm trying to figure out how to how to say for Christmas. Without her

what I'm getting at only while we don't have to use gas with your credit card, not mix, said yeah, but We're all grown up here usher, wife, you're going to shop, she can just allocate, when you to do your budget together love. You know what we are spending on gifts and, if she's going to do our Christmas shopping except the portion that you do I agree that this is how much we're spending and she's going to give you that and if you want it in cash, that's fine! And that way you can spend it but yeah, grown ups and we're going to know what's going on here I mean you don't get to go, spend like just robbed the money out of the budget to go, buy your wife, something for me, sorry that would be sweet, but it's just not it's not good

I don't work for you, especially since she's kind of the budget queen like that

for fun and practical ways to save money in your everyday life. You need to check out the Rachel Crucial, a pod cash from money expert, my daughter, Rachel crews, guises rates of crews, and I'm so excited to tell you about. My party has a lot of you following paychecks pay check their end. Dad you don't even know where to begin that they have this need this want to get in control of their money, and is that you have come to the right spot. So in Egypt, as Algeria and get a time of inspiration and practical advice, not subscribe to, the rates of crucial pod cast makes review it tonight, you're more from the Ramsay network, including the Rachel Crucial wherever you listen, depart, Gush hates James, pretty. The Dave Ramsey show