From the headquarters of Wednesday solutions broadcasting from the dollar car rebel, Abrahams Asia is down, measures gang and paid on. Mortgage has taken the place of the Bmw status of choice I am D Ramsay or hostesses Russia. Thank you for joining us. Open phones, AAA eight too, I five hundred and twenty two fine, that's eight hundred and eighty eight eight hundred and twenty five five thousand two hundred and twenty five

Darling is in New York darling. How are you been doing Better than I deserve, how can I help I believe, our eye so me and my wife. I let him out, the delays a memo, I will. You started a baby steps and early made a step too far come on, don't family house, In which we live, me and my wife, one house, and my sister, my line the other house Joanna show. How should we tackle approach to pay out the mortgage, wanted it to baby step for basic? If the onus on the baby's down the plan of like maybe we do know how to approach the situation. So why? What did her eyes? What does your partnership agreement on this house? I saw fit to state the everything It's fifty slash right now that balance

my face very expensive, Doing alone loan was six forty, eight right we don T silent, benign weeping, for four years and that every mother, but a hundred percent, but all of the reduction has been fifty. Fifty two, this point correct ok, and this is whose relative yours or your wife for who is me I for one house, then my sister and my body line the other one? Ok, so let's pretend that your wife inherited. Three hundred thousand dollars You wanted to play that on the mortgage. What would your partnership agreement say about that? While we are equally apply that, beyond a doubt in toys that markets.

I guess Bell the responsible for their less that's what I'm down. But if the will is there a written partnership agreement, not honor, you need one does late, because if you pay down on this mortgage number one you gonna be able to have a written document says you get your money back and the number two other points. We ve got is if you, if you pay half of it off, there's still a mortgage if they dont pay it, you get foreclosed on. So why not show omby amby issue like the over the relationship with them with family life Relationship like about lose their jobs like a both get sick. One of them could die thing thanks. Happen that even if they had good intent and good integrity, that isn't situation happens where there are unable to pay their portion.

Not not unwilling but unable for some wild region and I mean it. If there was a car wreck and cancer I mean you can have a union yourself in a real pickle here in your there now, I'm in here you got all that exposure now. This is why I don't like partnerships in general, so I dont know I tell you to do unless the state or the county allows you to split this homes ownership down the middle, and may you be create what what some areas would call zero lot line or a condominium too they I have and you won't have in their stand alone. Properties and your half could not before closed on. But otherwise, you're in jeopardy at all times that there still down here and it is not a matter of what they would like to do or how much you trust them. I've met all the people that all the things went wrong in their lives that never thought gonna go wrong in their life. And arm, and you can't control all the outside variables,

So you know Gus need a d. Failed written partnership and if you go stay on this deal, but you need life insurance, by the other one out and they one of your died as a part of that agreement, not called Man insurance in this agreement where your each other's beneficiaries, meaning if your brother died or your sister died. They them we left to you to buy them out by the other one out, and I M you- need agreements on what happens in divorce event of divorce or death or disability or drug use or dish interest, or the fall the all the big deal. We call them the screw up partnerships. And so on. Now, You do not know of a way to tell you how to protect yourself completely in this situation, but if you're going to stay on it, and I suspect you are I wouldn't be in it, but if you, if you're going to stay in it, then you're going to

have to have a detailed written agreement, and you need some key man, life insurance as a bare minimum nick Witherspoon, Lubbock, Texas. I Nick welcome that I've Ramsay show birthday things around sure? What's up? Well, Susan, I school before she gets round, and she had enough awarded in us and algorithms and scholarships to pay the semester, however shilling, have our glass and so it does not qualify for the federal programmes. Qualified school awarded scholarship. Is there anyway to know

look I shared with the school after the school about getting at least a scholarship. I understand the fat boy, but getting a scholarship put on her account so that we can make sure that we pass local ass master. I think you go shut down the administrative offices, I we're gonna quit your school. If you don't work this out, do, I need to take more classes mean if you need to take more than five growth of ours in order for it to all, be free. Take more hours but you don't need them to graduate. I understand that, but I'm saying you if they require that you just be a full damn student and five hours doesn't Oliver. You then go before I'm student thing extra before I'm students without stable, that's the problem. How did you get the great? How did what number hours? Were she taking way We got all the other programmes and got this got the scholarship before

I see where the full time was twelve hours, and this was the last master that she got ordered That's why I was thinking about going my last semester. Did she carry a followed? Yes, you did ok, That was the basis for her award right here and she went for free. Now she got a substantial decrease in to a not with these federal I, the tuition and scholarship you're, still to borrow money, Oh, I thought you said you got everything covered before and now it's not covered. She did thirty one to thirty one hundred dollars an scholarships Hell grants awarded to her if she were taken. How long I make them and what is a form of to obey generous Social, to accept seven more hours in order

loud and she gets it all, but let the thirty one hundred and twelve hours ride on the other you just gotta down administration should be viewed as a scholarship five hours, young people tat. While the balance has what I would like to sum up the school and what they do. They can decide upheld branch, and I can even on this- is that every measure. Don't all insurance is great if somebody else is paying for it, but if your footing the bill, One dental Dodd com is a much better way for my listeners. One dental dot com is a disk membership that gets you on limited lower rates at the dentist, not just for cleaning, but even dentures implants, route, canals braces and more weather

getting a plan for yourself, your family or your business. One dental dot com is the way to go visit. One dental dotcom today and learn how you can see the dentist on a budget. That's one dental dot, TK, Well, there was a legal and tie luggage welcomes it, Abraham Felicia. You going there better than deserve. What's up out, ok, you're gonna say that twenty five years old. This model here are two years ago, I only have sixty six thousand dollars left the pay on it, while among baby step number six LAO

I just wanna earn like how much a lump sum stripe like going to the house. I quit my investments destroyed by fifty two, nor is it the best answer, I raised my four five, seven account That is the normal Irish. So later, how well the online well down my them. I'm hungry again driving a nineteen year old, Volkswagen's yellow, then there Everyone makes fun makes me from my phone. It's an old, I saw what do you make a year, sixty two thousand roughly, but last year I worked with him about often What don't over seven hundred hours over time to get to the point: where am I right now so well done? Well, the fur two million to five million when tell a millionaire up about five million where people their money is two main areas like now thirty percent. The millionaires follow this model. Ok in one

They get their home paid off and two is their system, equally investing in their return I can answer for a one case, Roth, Irish and so on, and that's what all that shows are studying actual millionaires, not theory, but actual. And so you are on track to do both at a very young age which is going to put you in that one to five million dollar net worth very quick probably in your early thirties, it sounds like then that's gonna than other money is made if you wanna get up above ten million in other ways, but they wonder for the first one. Five million that I got and the first one million that most people have one unlike the millionaire theme or its doing those two things, so I'm to keep right on the baby steps. How much is in your emergency fund Thing and savings have forty seven thousand your little rich, I'm here, John they're a programme of that process. You're single. I take it right, the Al Qaeda! Yes, I'm back Forty seven thousand down to a margin,

you of three to six months of expenses, everything above that number one pick a number and make that up, we'll call it fifteen thousand. If we want to call it nineteen thousand than that which they we had fifty thousand to throw at the house. You're, getting real close to pay off that house. There look. I know you forty seven in their USA, sixties right side seventeen would leave, is thirty to throw a thousand leave. Thirty, six thousand on the house then you're putting fifteen percent. Of your income into investments. Retirement dutch baby step? Four. We're not gonna! Stop that money above that can get your hands on you throw up at the house. You said your twenty five right qualify, five predict, if we do that, your house will be paid off in about two years, Gaza, let out open for but the greatest alarm you're doing really really good! Well done! Logan, proud of you! Man are pats where those Lexington Kentucky High

How are you all right because in my car sure, how can I help? me tired and I took up a hobby of money for having trouble understanding you, your phone is muffled. Can you speak directly? I ll just better. Yes, man, much better. Let's try that ok, I'm retired and I took up a hobby that is beginning to make a little money. For me, I saw a pain recently for a fairly good tries, and my question is at what point do I need to start thinking about separating my my my art money from my personal finances than and potentially starting a little business. Now you're, making money a boost a hobby that makes money is called a business. That's what I call it anyway. As you know, is that it did not turn out to be complicated, though,

just got out of the bank and use your social security number and open a shawl proprietor checking account just a basic checking, account nothing fancy, Ok, broader just means you own it all, but, a name? It's called a d, be a doing business as to give it a name shall pay someone so Debbie. I doing as patch art, or whatever you name your business right, ok, all of your. Are income goes into that account and you dont pay any art exe says, or business expenses of any kind accept out of that account and if the Inn, because you know that accounting expenses come out, what's left in their by definition is called profit right that's what you're gonna end up. That's what you're gonna end up paying taxes on and after a year of doing this or immediately. If you want to get ahead of the curve, you are required to do quarter. We asked a month if you make more than six hundred and forty dollars and a quarter and cordially us

you're. Very simple again. What did you take in? What did you spend the differences profit times? Your tax rate give you your estimate. The taxes in Europe to send your tax estimate in showed the way we do. That is, if there's money, you're tracking account cause you made a profit and want to your art dealer. Then we take that money out account. We hold back twenty five percent of it for taxes. Got a thousand dollars in there, and you want to take some out. Leslie got two thousand hours in their new wanting a thousand. Now you only some in their personal lives later. Ok, thousand dollars out the account we set tune fifty over in a separate savings account for taxes only and we seven and fifty in your checking account your personal checking account to spend and work towards your particular goals and that's what I would do Creasy right. One of our aims- you personalities Here- has a number one bustling book called business. Boutique, equipping and make money doing what they love? I'm gonna send your car

that you need to read it because you are on the verge of being very successful, and you end thought about it. This is very cool. I love it all right item is weathers atoms in Seattle item. How are you I d like to speak with you? extra. Have me ownership? Certainly, how can I help you? in January. I want the baker and I want the money play poker and moving to you. I just wonder: I'm just very had been turned on spending money, a boy than it on one just to pay one bill, and I want you. On under very hesitant on spending the money, I want your bite of insurance, a purchase, bang and open. Now this money can go down toilet and down the two Joypad, though another one of their number. One way it goes back down the tubes for poker players. They go back to the table. The number one why you walked away from the table, their proper at the proper time apparently,

yeah I want for without, while you gotta get at this, or at least you on that, ok, yeah! Well, that's the best placed to lose at all oh by government to try to do it again. But anyway, aside from that, the Erika commander money of any kind. From anywhere where we tell folks to do just walk right up what we call the baby steps and maybe step one, would be to become debt free, accept your home. Do you have any debt other than your home? Now Just my home- and I just pick up my truck- and that's the only good for you- that money- that I can also Ok, that's finishes what we call baby step to baby step three, is to set aside an emergency fund of three to six months of expenses and that's the guy. Grandma's Rainy day fallen in case something bad happened, and so what make a year at your at your day, job

school janitor and I make twenty six thousand dollars a year older you on twenty three and you made four hundred grand at the poker table? Yes that day, yet, while one story, one story, ok life changing amazing. Well, I'm glad that you're paranoid. That's your wise beyond your year that this scarce the up out of you and that's why, beyond your years? Well done on that? Ok, then the next thing, I'm gonna, those hold that emergency fund back and I mean getting old thousand bucks back will gather your emergency fund, then start investing fifteen percent of our income. Do you own a home, now currently right than apartment, and if you want to buy a property, this would be the stage at which you buy a property, and we would tell you to pay cash or if, at this age of your life, you're ready to buy a property, if not You may want to just start. Investing this money invested very conservatively, which sounds weird to tell a poker player that respect.

Four hundred grand, but I would very conservatively and out away, do that's just check in with a lot of our smart pressure. Prose they'll help you I'm not that investment business, but I endorse people but are happily and I'm just click programs. You got on with much more pressure will help

right for joining us imagine with larger weathers, open from the family to five five to two Diana is in or Lando Diana welcome. Today, Ramsay show hiding Thank you were thinking. My call German. What's up in your world, well, a baby. Six months ago, Thank you and I we bought it a year ago. Without those specific plans, now I'm considering will even my job to stay home The baby, and that puts us two thousand

dollars upside down on our budget. However, the only that we have is more mortgage and I have saved eighty thousand dollars, just in my account question is: should I use those money because I'm plenty and go back to work in a year or two or should we sell the house and downsize because, as the biggest expense, we have right now? No one household income now right now, we're both bring seventy five hundred dollars after tax each month a month. You get her out together here. You just thirty eight hundred dollars a month. I gotcha ok, and hung in. Are you your boat about? Half of that, as you have, is exactly me.

And show you make about forty five thousand dollars a year, and your house, where I met, is how big eighteen hundred dollars in turn. We have a five bedroom house, because I have to step children as well. They live with us part time got a bigger house? They different sex, you now the boy and girl different rules. Almost teenagers We made a decision year ago, two instead of women in Town House, and when can you buy a house so in my husband is also up to his ears in alimony, modern child support that I'm already counted for that without giving it up number. So after all, this stuff it will bring them. I am not sure how much other dead do you have a little, how she said: Merlin Right, none, artist, pay for credit card to pay off every month Ok, you quit your job and come home. This house is now roughly half

visit on pay and obviously that's absurd and so you ve got eighty thousand dollar saved and you're gonna subsidize you not working of that eighty thousand right here- don't you, burn through that. In order to keep this house exactly or are you are you are showing us how the house and move down dramatically? Ok, he's either either her aunt or by something smaller, ok, what we need to set your emergency fund aside and will call that twenty five one of the eighty just for around numbers. Ok, so you Don T have emerged If, in addition to the eighty, now that now I shall now we have sixty thousand dollars to burn through at too Thousand dollars a month, that's thirty months

in two and a half years, have to sell this house or go back to work and you all a barn through sixty thousand dollars. That's the thing I wanted, back to work. When my baby straight, I feel like the very first years as import, and the job we work is very demanding. So it's a big decision. Won't you you're, not gonna, have the money to wait. That long, because you got thirty months, that's not three! That's two and a half year when you have the baby six months ago, there will be three poker. That under third birthday, the house's either sold or your back in the saddle kiddo. Or your husband or your husband is doubled. His income on healthcare he's working on he's been in Teresa he's looking for it very but you see what I'm saying: here's the thing you can plan you have to have

in date to this cause, this car is gonna hit, but wall and it's gonna disintegrate mathematically. Suddenly, when this runs out and then you're gonna, look round wonder what happened and there's no reason wonder what happened. We can predict it. It's a very predictable thing! Thirty month, from today, you're gonna be broke and other house payment is fifty percent of his income. So so one of three or four things: hasn't happened, you're, gonna, say full house he's gonna double as income or your back at work, thirty months, today, your child's third birth? he's right: something is gonna happen, so let us go. Put that on the calendar and put on the refrigerator and let's keep talking about it. Working towards it and thinking about it, because I want you start looking for a job. Thirty months from today, you have to start looking for a job. Two years from today,. I agree or the sound the ard two years from today

that way. You got six months are pad here and this thing than melt down on you see what I'm doing with his mouth, the Anderson Man that my question, I guess, as you know, when you love, but how is the EU that are you love the house this much, not really? No, I thought you might want to sell it moved down. It would change these numbers dramatically. That's what I'm doing in the wine, as you know the good time to sell it now, my husband doesn't get the income. Where am I doing How much are you willing to fight to keep the house? How much do you love it if you love it a lot, you got thirty months. I don't love it unjust, talkin to you right now, right, not eleven at all. If I'm, u and down and house, because I want more margin at this hour, Burnham lady, granted to article eighty ground, the bank and using all set fire to it. Here you don't put on them. Front yard, how a bonfire they thousand bucks and that's what you're doing. That's! Ok, if at Europe,

always and you're doing that in order to be homeward. Maybe and keep this house, but you may for the baby and be in a different house, and the whole thing takes takes a lot of pressure over this because these numbers are really if you're not eighty thousand and the bank, it may just be over we'd- be put nostalgia for so right now. I wouldn't be wouldn't really big rush anymore. Gave you that option is, do you gonna burn up sixty grand in this case, sixty of the eighty some interesting question: do you talk to I'm glad you're, making the quite I'm glad you're, making the decisions on purpose before it blows up on. You show your very wise in that regard. Good job creation, is weathers in Green Bay was constant high growth. Outcome of the diver amnesia gave me a beer. Have you. How can I help you, then you think you re a chauffeur, not succeed. Here and got Europe your book. I told money, make over and very

what about all this but do have one question regarding my circumstances Kristen Pastor, and so I live in that sure enough at church on parsonage sure, that's Inflation is that they have a home for me to know then go and then and addressed, in my denomination nation, has a very strong pension, planets boy funded fiscally sound that'll pay me percent of my income when I retired fabulous still. He adds wonderful, so given us the facts: what does what is based? That's five and six look like for me: Well, five, kids college. We have discuss that. Are they furnishing college? It you're denomination Then you gonna be saving for your gets college by we step for saving for Percent of your income, I would still do that because, in addition the attention you need. Some other monies

the original mistake in the house with a wise or stores of choice, food and oil. It says in proverbs wise people say money in. As far as baby steps, six goes. Obviously you don't have a home to pay, often wouldn't want you to go via house when you got a parsonage, but some day, you're gonna retire and you're, not gonna, be in the parsonage and you're gonna need a house right, but I shall I might make baby six saving to pay cash for my house fund in the future. Out there somewhere when I retire- I'd like to have fallen not our sitting there to disrupt a house that being the same as by an all vows only or paying yourself in your sees you to do that, cause you're living in the parsonage as part of your per compensation claims, but the question that sounds like you have some wonderful benefits part of the support of that particular denomination variable farewell down very good stuff,

The calls for preserving the Lord. This is that I Ramsay Shell your line of refreshment. How are very treatment. They think you you taking my car, I I have a question and turn it into how to prepare for anticipated financial changes coming up in the summer, and if I should treat them as three b,

or we can continue with our baby. That point, I am, I help change anything not appear in the summer, but with that we enter a meal and a new job with an salary at this point, since we don't have a job offers are out and then home, particularly after moving rent for six months or a year, but a couple things. We know that are coming out and we we have saving to include emergency, find an a down for how? But you with all the changes, in addition to having to older cars that could to be replaced at any point if we should treat this as they be step three b and stop retirement in entirely and build up or if we should continue with baby, that foreign five water Children come now. Seventy two what does he make I'll bet? He makes

We need to allow our you're in love with her and how much is in your emergency fund? a hundred and twenty, and money. That's our total, Basically, you ve gotta have like twenty bag. Already earmarked a wire baby as emergency fund? What's wrong with that men are for whatever we knew. We were both the national favours, Ediths gray eyes, and it terrifies us to stop this. You have two years of income Ok, ok! So now you don't need to save him. You have ten years of income saved if twenty five thousand energy on extra hundred grand lying around for a down payment, block cars and a translation if we're case scenario, happens when you do all three at one time, and you got a hundred

but do all that so now you're in good shape he only or about that. Your ear net. Your natural state is to worry and when you worry save more exactly and now I think you the cars, are going make it longer than you think. You're gonna make your transition easier than you think because he's already working on it, this guy's not leave the military with no plan he's gonna have a plan. Probably have a job and up. Absolutely Susan. I should think it yeah not knowing why twenty five percent of our future income will be. I think that just that concern us in thinking like what we need. Down came to be in that, and I'm not like we're really more. When I entered islet, let us put things in order, oh god, I would not your house until the transition is complete. Absolutely out of here if you lands a job making eighty grand and you want in this bad money is a down payment on a house, throw it away,

employment in the house above the twenty, our emergency run and then then start Simon up and pay cash for car replacement, but Your honor transition is number one house with number two car replacements number three at the parasite August, Murphy coming in and all happening. I want them to not all gonna buy a house right you ve gotten settled on the transition narrator. Can't happen all at once and of a car breaks, fix it and drive it If you're in the middle the transition and brought my company in a? U dont rob new car and another transition. Either you get the transition saddle you get the new job You make the move to the city. Then you settle in you get that income going comfortable with that, whether more or less or whatever it is then of yonder. Whereby the house fine or one old cars, is like about the roll over some by and pick up a car and then talk, get my house, but in a warning,

do the house or a car purchase until this transitions done, you hundred thousand dollars to make the transition fine. You ve done a wonderful job. Very well done and give you for your service and thank you to your husband for his service lilies, whether some Buffalo New York highly. How are you better than I deserve. How can I help so I'm a question Regarding our next, how could you the current home. We cannot on being here for probably another five years. We're gonna be freedom a couple months, so many have an extra money at the end of the month, I'm wondering if we should pay back burner common put it like a regular money market or if we should be putting it on our current mortgage. You should be put on the current mortgage above Europe. Percent, going under retirement ten percent, going on return. My kids colleges by MR five and pay extra mortgages baby steps fiction,

simultaneously, want your debt for you to have your emergency fund in place. Splinters of Myrtle Beach, I Spencer, welcome the diagram she shall, I messed around, they think Taking my trimming was up. I have a business. I built honey arms on wheels were living because my earth, while I'm twenty two years old for supper on this business alone, on it for a year now zero dead. I live with. My parents got wrapped up in the business right now for this year a hundred thousand dollars, DR my question is on trial in old track that I've had concise. It needs a lot of work. I'm just wondering I don't know if it's worth it, I should go out and buy. A vehicle- I don't know if I should be buying new vehicle on getting things- have definitely not

Definitely not. I hear you talk about now. Don't you know you don't mind Viet over the four this, so you showed you got how much up in the business. Hundred thousand dollars, is what I'm, what I'm looking at me the sheriff I sold over three hundred thousand is the sheer your profile. Our profit will be a hundred thousand dollars. I register profit, ok cool! and why do go while much impressive and so you, when you say tide in the business. So what equipment do you have that you have bought I'd for already all action, everything that I have is already paid for all my tool, knowing how many of you are invested in all of them. I probably about ten to fifteen thousand, some ten thousand dollars. Well, does you aren't you own the trailer that your hollow mom that's correct?

What is the truck that you're driving worth So I drive just enough once it's been it's just that you refer to them, before upon fifty actually dog transport. The tiny armed on wheels myself ire out accompany all clear. I hire I hire out a company to do it that way insured social, how much out of your hundred thousand bucks on much received. Well. I'm buying new shoes and gas incurred in time insurance and saved everything at all. So how much is your servants again, Well, in the I have it on my business account wrangle matters there, in twenty one thousand, how can one really impressive go? Go So if you wanted about without our track, you could write a check and you still have a higher ground there. Behind

but I know you didn't really. I carefully stared honestly scared. Then my money thought Gooding Bike Point plan Ireland should be my cap, that, but then you got a hundred and twenty in the air, so hundred twenty one in their show each driver who does not left over if you do not want to with motors and wheels total in your life? More than half your annual income- as they go down and value, and so the caught the truck driving, I'm gonna gas insights about six or seven thousand. Our truck is about right. Actually left the transmission shot. It can't be I think I think you have done a great job. My gonna turn of money at twenty one years. Well done we're not gonna, crazy, we're not gonna, buy new truck, we're not gonna put a brake on payments, but would move in the fifteen to twenty thousand dollar range and write a check and buy yourself a drug for Christmas. Merry Christmas, I think you're right shape. You can do all that in its do you don't even

If a word, you don't want it personally and you ve got the money. It's a small portion of your income NED taxable profit a year, You ve about job making, money and and saving it burn. Sir, very well, the next thing I want you to sort of a brown wow just out of ever empty shell and the bugs. Hey guys, slates answered senior second answer for the day resolution this hours over, but you can find more gray content what or Youtube to catch the most watch, daybreak, Jeffrey screams and the fairy everyday millionaire. Second go to the neighbouring. Show you to have your look,

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 crew, guises rates of crews, and I'm so excited to tell you about. My party has a lot of you following paychecks paycheck their end as you don't even know where to begin that they have this need. This want to get in control of their money, and if that's you, you have come to the right spot. So each emphasising at a time of inspiration and practical advice, not subscribe to the rates of crucial pod cast, makes region today, you're more from the Ramsay network, including the Rachel Crucial wherever you listen, depart, Gush hates James. Pretty or of the Dave Ramsay show this.