Live from the headwaters of Ramsay solution, broadcast armored car rental studios. It's that day, Ramsay show that is down just came in the place of the Bmw status, symbol of choice on day Ramsay, your host. Thank you for joining us America, it's off recall anywhere in North America. The number Eight eight to five five, two to five triple eight eight to five five to two

it is free and some say advice is worth what you pay for it. Action is Fred in Kentucky High bred. Welcome, too, that I rams Asia by David we'll take em, like oh sure, what's up Unfortunately, I have to replace one of our cars wasn't quite prepared for to happen this fast and I I refused to take a car loan soldiers programme. I could get a little advice yeah good! I could so far so yea money saved I've got my emergency fund, which has taken a hit the past couple months due to cars, and so it's actually found about five thousand I've got an inherited Irae account, but I don't want to get into

other than that retirement accounts. Village, mother touch those for sure. How much I write about eighty thousand, what your household income All roughly ninety and the current com, what's the deal with it,. We, who literally you I'm the wheels? Also that it is, I won't let you make her her fear that, but it's a vehicle was about two hundred and fifty pounds miles on it and it has just done midget running it's running, it's actually my wife vehicle and I'm a little and getting to the point that I am to were- were her to keep driving it with the income you have. It sounds like you have no debt right. I have no doubt

The problem is self inflicted over every extra down, that idea, I pack away into either I one I will I raise, which was, which was- it was a mistake given that you needed to be saving to replace your wife's car. Ok, with your show. Let's stop everything for three months and power grandam by car, and you drive the limp mobile while she drives your car, March, could with no with no contributions to anything, make an ninety grant a tie. Budget in three months, Yarborough save ten Grand make a ninety right. What happens? Does it make it that law across the bridge when I get to it? I'd probably pop at inherited Irae, something I can do. That works or your gun.

Are you gonna, clean out your emergency phone and have absolutely no liquidity at all, which is ok, but you're still not only have a five thousand our car, you probably interim greater courage. Six months later, anyway, Not gonna put her in a five thousand our car permanently. No, no, and you only got five not that here there right, ok, so on You know, I think you and get some duct tape and some by on wireless, keep that thing runnin. You drive it give her yours, federal law anyway, Mama gets a good car. So? I'm gonna let her rather good and you'd rather thing, and you just keep her runnin baby. I'm in use keep passionate and passionate. You know and then whatever money you got together, let's pay cash for the thing and bought quick as you think ten grand get her pretty good car. Don't you? Oh yeah yeah! I was Thinkin Taylor sitting down a bit yeah. No, we go away after the sitting down the problem with him.

In the end, did I re, as you can't put it back? it's it's out of their out there, and so If I'm in your shoes, I'm I'm with you, I would try to not hit that thing, but if it, down one. Than the Milo three months scenario I laid out here. You may be forced to hit that thing for enough to get her a decent gar and oh well then you learn your lesson and you shall gosh. I have to save up and pay for things other than just investing correct, and that makes real, better rhythm in your financial plan, but otherwise you ve done a great job. All your money, an excellent job with your money as a matter of fact, so well done, sir. I think you're just a super saver, and you haven't thought about the operations of the house all because you're so Linda, investing, which is not a bad thing, but in all its course correction, that your due for a thanks for the call

conforms AAA eight to five five, two to five, you jump in we'll talk about your life in your money. It is a free call. We appreciate your joining us in hanging out with us. Well, this the month when people, just like you decide that I've had it not level because anymore, I'm sick and tired, being sick and tired? This is where the real meets the robe and you have a goal to get ready. Your dad save money become outrage with generous make some changes as a great way to it. Some people start with financial patient. Firstly, some people listening pod gas. Some people do of those two things in some people right, the best selling book the total money make over like seven million copies out their floating around in most of them of action read some of them are still a coaster on the coffee table, but on the book has the stuff in it to walk you through the baby steps and show you exactly what to do. That's why it has been so popular

for so long since a number one in the Wall Street Journal for the last ten weeks in a row it continues to be a number one best seller, check it out its twelve nineteen on right now in the online store they Ramsay dot com or you can call the room, concierge team at AAA twenty two piece, eight hundred and eighty eight two hundred and twenty seven, three thousand two hundred and twenty three. So the rules around here this week you really basic concepts that work some of the most profound, you will ever learn in this life are easy to understand and hard to do. Love your neighbour as yourself. It's easy to understand that some people have a neighbor this, not real level, some people just or not that lovable, and so it's hard hearted. I know what I'm supposed to.

But doing one or more to do with ard and no discipline seems pleasant at the time, but it yields off our list of righteousness. You pay a price to win. Everyone pays the price if you're gonna win everyone looking for a short cut, is gonna get burned, get rich, quick, doesn't work, doesn't work and no you're, not the exception. You're just arrogant, if you think you're the x junior arrogant, he who hastens to be rich, wants to get rich, quick, he who hastens to be rich will not go unpunished. See I did that, that's how I went broke

I built a house of cards. I got too far in debt buying property that I couldn't afford. I was out of control and I lost everything in my twenties and have the opportunity to start again over That's what you don't want to do this. But I ran Felicia if you ever log in Japan

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Sarah, whether in the end, I welcome with rapidly you thinking of making my comp sure, what's up my on pay, and we got engaged Congratulations you no power of home there We are, without a doubt, yeah, I'm trying to figure out what to do with our house says with bright now we both clothes and separate houses. Ok and what are you getting married, when are you getting Irene, probably twenty, twenty one? Why so long more about We need to follow and trying to sell

I'm her wedding outline. Ok in that way, we could the money for the wedding for your married. I would just pick out which our children live in and sell the outline of a fairly normal thing to do all this time the coop called Ronald out, one of among all be dead on them. Yes, I wouldn't do that now- I would use the equity and the one that you shell, to work your financial plan, wherever you are on your baby steps and if you're up to baby steps six after your married meaning you don't have a debt, you have your emergency, putting away retirement money and all that then I would use to play down the property that you're going to live in.

We get your home paid off before you and then pay cash for rennell properties before you start buying rennell properties. I would not buy rental property with that, and I will not tell you to keep one keep a house of former home with debt. While you still got dead on your personal residents to so now I mean after you get married pick out which one you live inside the other one, that's what I would do if I were in your shoes. I thanks for the guy. And by the way weddings are expensive. You could just get married emits a second marriage light marriage. If you got a daughter old enough to get married. We know this is not your first go round. So then have to be some big wedding. You just get married,

you thought Jeff is in taxes, a Jeff welcomed that I've Ramsay show that name Becker Avenant sure. How can we hope to have a question on recent anything? My wife and I bought a home that ten years ago we re finding instead about seven, but we are pretty pressed upon a fifteen year. Note with that. I think the kind of put ourselves in our house poor situation are our mortgage and probably taxes equates about thirty five percent of our bring home and so on, and so my question we were getting by okay, we live comfortably, I guess you'd say, but we have not been able to put anything away as far as I can never Egerton bursting fine. So a question you we ve got eight years left on on

in your mortgage at a tree to tree the quarters in interest rate, it makes sense to continue down the same path or on and just what your household in order to eat. I wrap rub out of one type of rose and how much debt do you have other than your home at night, and you can't tighten up your budget enough to save up an emergency phone stay out. A restaurant. When we got two kids are not carried out, but Europe is not required to take a restaurant kid, no reference, no emergency fund man, that's pretty basic. You need to get our written detailed plan and hit your goals. This is tight, and it's not what I want assigned you up for, but that's not what's keeping you from winning here

keeping you from winning, as you haven't, been willing to tighten up on the other areas to offset the fact that you did bite off more than you can tree we're now. Refinance? I think you can make it through I'd. Look at things. I can do it. My income up. I would look at arm s Four things are lay around round that can be sold to create that emergency fund and create that gap, and then revealing in due to get your income up for a while and relieve alone pressure that wouldn't be a bad thing, even if it was a temporary move. But you're pretty close here, I'm I'm gonna try to push on through this. If you can if you don't see your income changing for eight years and you're gonna, stuck in this for eight years yeah. You probably do need to refinance it. I guess because But I honestly, you guys need to get on a budget and tight yourself up and watch what you're doing you you've not done that. Yet I would do that as my first step and I'm but yeah

thanks for the call open found a triple eight, eight to five five, two to five times Rhode, Island Hate Tom, welcome. The diver amnesia today makes it at my God here sure. What's up so I'm calling today because I put myself in our pre porcelain nation will last for five years and a small business, and I put myself in a lot of debt, quit background is my. My father was by a huge fan of yours and he preached and it should fall you no good money management skills, and I did I paid for remote areas in cash prefers for here's my business and then I got ambitious and start taking. And I got myself into it- creation were about four thousand dollars in business equipment debt My company makes up money Bernie Susan recovered at that

but everyone, I'm strapped on, barely make it through, and my question is- is- should consolidate that debt, How can that be alone? To get my cache well up, because my password, They concern urge your and my answer to your office taxable income in a year. Between one sixteen one, ninety, why have you not been able to reduce four hundred dollars with a debt with Al Qaeda income, I've been doing. I've been taken that at one sixty and Ivan put in the back at the debt, but I've also, had had some of you have some bad habits. My wife has had to back out I backed by abbots personal spending, and we sat down over Christmas and decide weekly. We stop this a great change. What does the equipment on offer? Some turned my truck and my personal truck in Thursday.

I am also want why vehicles, but are you are you are on your truck at least so impertinent LISA A member about able workaday aloud, I walk away from anything and I have of amateur Oda, but twenty left it was just a poor decisions. Purchased it and if you did much needed to was basically a rental and now I'm gonna put you on that. So tat. I read something of what what's the big equipment you got, forty four hundred grand would you buy. So I've got back hoe, so gotta skip, steer, excavator several trucks, which I use, but the two that are killing me in Mostar cash loans that I took two years in a row for seventy five thousand, each and and those who do not those on the right to get those about fellow hurt. Now: ok,

well, one. I'm audacious lay out a game plan here the says I'm gonna sell enough staff, even if its things, I think I need to get and use my carriage here. You know you got a good income to set up a household budget. This bare bones: take the money home for bare bones and feed your family. Every other dollar goes on the debt and that cash flow that I'm talking about. Your bare bones household, take home, is that cash flow plus selling off stuff. You need to be clear of debt in three years, which may not you're, probably sullen some trucks, I've sample plan based on what your sand. That gets me there too, but in but the top, thing for me. It's just the casual, so would you said not to take along now we're not only with king it that way, taking alone

How do you think you have to cash flow plan to be able to cover your in your business open and and your men among budget at home, though territorial planning. Thank you shut the money back for those two things and then, above that every bit of the prophet, goes for debt reduction. So you really care. Within two years. The numbers are given me: don't allow you to do it in two years: joint for internet a thousand a year companies are you gonna pay off. Ran into Europe unless you're selling one of big visa requirement and in your plan which I'll be a bad idea, but some combination cash flow and selling, I'm gettin free. If I'm you you're, not having fun over the years. I have seen so many family suffer by not having life insurance. It's not that I didn't care, it's just that they didn't know. So they did nothing. That's a huge mistake. Listen

bones and wives moms and adds think about it. If you died, how would your family pay the bills, the mortgage food and plan for a better future? This is what life insurance is all about, and term life is the only way to go. It's not expensive and it's not complicated. I only recommend Zander Insurance and I have for over twenty years, call them at eight hundred three five. Six forty to eighty two or get instant quotes online at Zander, DOT, com, gracious in Illinois crash welcome of Abraham future afternoon day. For me, are you are you better than I deserve? How can I help

first of all like to which I had about it to my mother, and I would also part of the ribs clearly hope you don't mind me saying that question for you, my wife and I are on baby steps. Lee right now we do kindly have three months in potency. Fine tat, get advice from you shouldn't things with the from three months, the six month, an emergency fund, and in fact, percent oil retirement or should we go ahead and build up to six months start investing after that. If you want six months, I would if you think you need six months than I would do that. Before I start investing

I mean we both have secure jobs, for greek companies have basic tat. God will allow them to be. I guess how much much feeling how much is my in there were three months in two thousand and well What what can happen oftentimes? Is you get on further down into your baby steps and on, and you have to start building some wealth that is outside retirement and outside of your merchants, who find that actually access your other backstop, in other words, the

I am only liquidity. I have is not just a three to six months of expenses: emergency phone. Obviously, I've got other investments that are non retirement and dumb, that's the direction. So you know it's ok, if you're comfortable with three, then you can to stop at three for now and worry about adding some extra investments are some extra savings. Later on after you get out a baby steps, six seven and all that. But the trick is just be ready if it rains, you need an umbrella, and so what are you comfortable with fail, as well as in Michigan? I fail welcome they Ramsay show. Thank you, nice to talk with feel like. I know you is to pod task then well. Then why did you give everybody? You never asked me how I, how can I hope so Mr President, I shall himself employee

so my income on your ear shot through a very difficult I'm in sales. So I get a commission and very difficult the budget we don't worry, we have everything paid off and I expect a home. We owe eighty thousand dollars on our house in payments only like to go about a month. We got it. I got up smoking the interest rate when the market was light, so recently, like two years ago, she'd available called a three both on a fluid leak and so she hadn't worked for over two years. Now, Have we went along Also. She had an incredible employer and actually other were now she's, actually still on the books. Albanian point, which had just think is a blessing from God, but they will go to yours and keep her job for good, but

so, if you ve gotten short term, disability and long term disability we are now in the process of applying social security disability, but the issue is she thirty four years old and that's very difficult to get. Even though both to go on her function. They they kind of look at her age and any kind of difficult to get. The government want to pay from for something that was so the question that I have for you alone? What's what a good idea to try to have some sort of a consistent budget and then number two I got probably about twenty thousand dollars in investments with this this The guy authorities, work management, investor and invest neutral funding, only different data base. But what it does is coordinated by with me life insurance and policy coordinator. What my tax lady coordinate with any legal

you gotta go on already got a daughter who are suffering in college we tell him that maybe have a wedding come on up then, hopefully, never, but to be able to put some money towards that wording in this kind of chordates. All of those things will ass. We had probably around forty thousand, but in the land, of years we ve taken out twenty thousand of it just to help for her medical bills. We ve been very healthy, so What should we reveal, then? Why we retirement, and how do I get a budget? That's. With a fluctuating income, Booker show what it was that what you're on in the last five years, what was your best year of incoming your worship of income. Best. That's your would have been happy to earn sixty and the word

Dear, what a bachelor party you really made forty thousand dollars yeah. What have so ably distributor? I have different product liability fell to doctors in hospitals. What happened here windows? I lost some of those parties lines they sold insult other companies or I'm unable to care about how long. How often does that kind of thing happen? I have tried different from product lines which basically happening all the time, but I also have other product lines to pick up the slack and Two years ago, in this whole thing started with my wife leaders had on mass exodus of product lines that were. I was my my work here: ok, but remained so throughout what what I would do is just monthly look into the future

one month and say what is my worst case scenario in the coming thirty days and that that you know that we can predict fairly accurately- and you say you know my worst case scenario in the coming thirty days is: fifteen thousand probably gonna be more like twenty five, but my worst cases: fifteen, ok, whatever the number is something like that up based on their worst case. She rent that you run down a normal budget. In other words, you take your worst case say in the coming thirty days. Second accurately predict that I'm absolutely got twelve thousand dollar fifteen thousand artwork,

This sounds like that numbers realistic in your situation, then, in that case you would do a regular budget as if you were on salary for that amount for this coming thirty days, then you, in addition to that you make a list of other things that you want to do or need to do. That did not make the cut in that first round. Nor is unlike to build this emergency fund up I'd like to do some more retirement money. I'd like to do this or that unlike set aside some money for a wedding, I'd like to do whatever and then in any additional money, and then you make a list of the things that didn't make the gut. You prioritize, though, The most important one of these is is number one. The second most important number, two third most the number three and then, when money comes in above that twelve thousand dollar. Fifteen thousand. You use that money right down that list of prowess

number, one gets all of it until it's done number two gets eleven it's done, and so will you say twelve hours it was our baseline with a budget on too, thousand dollars and we, making. Eighteen doubt shall yet another six thousand and you go down that list from wonder whatever. Until you use up to six thousand and that's called a price or a ties, spending plan. That's it warm. The irregular income planning sheet is a form in the back of a financial peace materials or in the back of a total. My make overbook all over the place online. It's a form we develop years ago. So not people use the every dollar budget and what they do. They just reset their budget as their income in above their baseline, but they shut the initial thing up as a baseline and then, if they get that extra six thousand and they just make adjustments in their every dollar app to get on through and make that happen. So good question. Thank you

warning us this is that eyebrow Malaysia, Our structure that a Colossians three twenty three point or whatever you do, work orderly. As for the Lord, and not for man, knowing that from the low

you will receive the inheritance. Is your reward? you are serving the Lord Christ Calvin Coolidge said all growth depends upon activity. There is no development physically or intellectually without effort and effort means. Work. Nick is weathers in Kentucky. I make welcomed the diver amnesia heyday flock for having me I'm going to get a perfect, vague way from the past description de Charette. Absolutely, how can I help. My wife, and I baby said three b and we feel that we ve been called recently to move about a hundred miles away to local Kentucky to plan a charter help planet church we had about poured a six months but we need actually make the move and that's a lot of them familiarize yourself with the area. We can on our own home, and we have a well conservative

Madame money and equity, and enough saved that we'd be able to hit that twenty percent down on a fifteen year fixed we'd like to buy but are unfamiliar, currently theory and we're just reluctant turann ends. For the loss of possible savings for the least period in this case, not what you're, what you would recommend when you playing the church, are you gonna, be by vocational? You gotta be working longer pasturing, yet so we're just assisting with the plan to find him that we will be moving in support of the church. And for my life- and I will continue to work, ok, so this is simply a move. And there are really but the reason for the move as the plant. Ok, and so you're gonna show your house put twenty percent down a fifteen year fixed where the payments no more than a fourth. Are you take on paying you're gonna move to local? Yes, sir, and I promise you that

didn't know if you would, if you prefer, with a move like then, and knew the area that we should grant for while or I mean you can go even you're, not far away and you ve got several months to go over there and do some investigation is not the end of the world a ramp. If you rent for six months and learn the area, may I just wanna get real comfortable with the area before ahead by, but you can put your close enough and you ve got some time that you probably can familiarize yourself by looking spending time over there in shopping these markets and learn worthy invisible lines are what you want to learn in any town. They envisage lines are when you go across that road property values go up or down, and that's true in every town- that's true with almost every road subtle. You're the other side of the tracks in a good way or a bad by in

all over town and you want to get the via above that, the feel of that, so that you don't you know, DR across the road, property and feel, like you got a deal cause. It was like the one on the other road in own is not necessarily a deal then so that not just the thing you want learn and good real estate agent. One of our Europe can familiarize you with that ending gulf. There look at prime. You get the valuations down figure out which are these areas in order to get school system issues or whatever it is? I don't mind you buying du monde discord in their blind and buying something, but you ve got time to go. There make several trips your close enough to make several trips and learn the market, and I would then then I would go ahead and make the purchase if I were in your situation, long as you familiarize yourself with a market. That's the plan, Ashley's Withers and oh, I actually well but the day ram. She shall thank you, David laundered, equipped,

The new to? What's up my husband? I had you cleared agents seal are involved, are everyday millionaires uncas up with their own five, twenty nine p m. Then they put centre the dollars each and both account wow. You hadn't done that's all contributions and I keep saying they have more than enough money for the girl. They send them off the college when my husband and I would like to know should we aim for a fully funded by twenty nine account for both tell time? Well, you would want to figure out what your target is, or his, where they're gonna go to school, try to calculate what it's gonna cost school there for a five year old thirteen years from now, and so they gonna go to.

The University of Ohio, how State University, what were they gonna go and come in and try to get some estimates on what that's gonna cost at that time, and then you take that figure and say I've got thirteen years for the money to grow for a five year old to that level, right right, and you're smart Vesture Pro can put that into a calculator financial calculator of online with financial calculator and say I'd. How much lump sum do I need to day for thirteen years from now, at my investment rate in my mutual funds, for it to grow to ex so I've got x for tuition and You know that the formula spit it out of a financial calculator about thirty seconds but yeah you ve, got to determine what your target is. We Oh you got thirteen years you're using good mutual funds. We know you're gonna

ten to twelve percent, if you watch what you're doing in your part, purchasing mutual funds for much more vesture pro when you're learning how to do investing that buying it'll funds that exceed the Essen P and there's plenty of them do and if you do all other than your target is there and then you're gonna? You know you will have funded enough in the five twenty nine for them to pay for it, and that tells you the ten thousand dollars of probably for the little one is probably almost that for the five year Maybe not may need alone, but more and it and but that depends on in all you gonna pay for graduate school or you wanna, put willing to pay for private school rubbed versus institution. For oh, how state in all and how states not one of the cheaper in state two issues either so their younger, not outrageous, but they're they're, not they're, not like that.

A state school in America. Anything so check all that out and figure out where you are and that's what I would do. That's how you do it sedulius more. Mr Prodi can work you into that number pretty quickly, sounds rather some New Yorkers SAM welcomed the diagram she show, high wire, forgive attack and Michael sure. What's up my questions like this? I just started a total money like over now read about the whole life and chance now I'm father he's so by the light of a thing to be a very successful. I'm here me a whole life to terms the cover everything You just need a tall neighbourly that I made on my mutual funds areas, though his fellow men I bought from him, and I made eighty percent this year, and so I asked them Why do I have a whole lives which is making nothing, I'm investments, and after I read your book in December,

many are making Aiken beside one. I just got rid of that and put the money and the like. You're, like a man now say excite the Meda investments, the mutual funds. The tax may want the market to be as high side and make them, but when the market goes low, one time that it does, I need it. Action on that's the whole life insurance, but they promise every year certain and I never gonna go below that? I'm gonna give me every year, so on a market go down. I have that protection Thursday. I got stuck. What do I tell the now, Where are you going to solving and arguing Grandpa or not that far than on? If you can't do that- and I am going to- yeah yeah. I know I made my birthday there's a lot of people that mean best and are wrong that's that's the case with them now your whole life life insurance as a hedge as a back up for a market downturn. If you want to keep some,

Where did you put it in cash and money market accounts and way. When you die, you don't lose the money, the money that's TOT up in the whole lifetime, value when you die, you lose it. You ve paid extra. To have that in there and you dont get it. You only get the face value when you die show. No, it is not a good backdrop. Backstop he is very old school. He comes out of the insurance business. Is the background the comes out. I have enough the only people to believe that stuff anymore, so dude. You got to do what you want to do, I'm not going to tell you argue, leave grandpa but he's wrong. That's simple! That puts us our that I Ramsay show in the books. Our thanks to James Childs producer no danger associate producer involves greater. I am Ramsay, your host, we'll be back with you before. You know, in the meantime. Remember: there's my only one way to financial peace and that's the walk daily with the Prince of Peace Prize Jews

hey guys, like Thomson, senior, secular police or for the day razor sharp this ourselves more great content or used to catch the most watch David with rules and buried every day. There are several babies and showed me: have you ve got questions about retirement, investing are becoming an everyday millionaire, go beggar and broader with my man, Chris Open on the crucial genscher. I M excited to be able to talk to you all week in week out we're gonna focus on your calls, and it's going to focus on building well investing and how to become an everyday millionaire subscribe to the crucial genscher. Wherever you listen about gas page producer of the Dave Ramsay show this.