From my headquarters of Ramsay Solutions broadcasting from the dollar level studios. It's that day, Ramsay show what that is. Dogged cash is king in the pay of mortgage hasn't changed the boys of the Bmw as those that a simple choice on day Ramsay your host. Thank you for joining us. Open phones, AAA eight to five five, two to five: that's Tripoli, eight to five five. Two to five Amy, is Witherspoon low over Kentucky hire me. How are you.

Hello day. Thank you for taking my call. You were things you're financial help. Thank you are gonna help today I have a question. I am and took out a wife, insurance policy in two thousand, the thing in on it and in two thousand. Sixteen I was gained disable, so I'm unable to work and My Insurance, Asia, for me the opportunity to be able to have three insurance payment that they would say. It over, but due to my disability in adverse, Made it sound like you is great, you know new government nor a policy

would be no problem for further entered. He said, oh the only way that pay for it is. If you try to this, our into life insurance policy, though I know this is it for many years he was the one that I do now dealt with Tony almost twenty years ago. So I went ahead and I said: ok I'll do that I went into life how's that Internet agencies actually paying my Montana instalment, secures the twitter you're financial peace and a few things that I had forgotten over the years then you're smart money like over right now- and I realized oh no. I put myself into a position that

are they still healthy for the long term still I wanted to call and find out you advise so you have you. Have you have a whole life policy that doesn't count for anything? That is correct. I would keep a free whole life policy. Ok, Maybe you can get out a term policy, that's a bigger policy for free, that's fine! But if, if insurance getting ripped off at this point? guess you had a waiver of premium rider on the ridge, term policy meaning that you paying a little but actually said if you became disable that they would pick up your premiums. They did not do this the goodness of their heart. They did this because of coverage. You had purchased and my guess is the waiver a premium, probably because it's a whole life company you're dealing with not a term company, probably the only way the waiver premium takes vanished for it to be whole life, but if it's free, maybe it's not asking you a single dime there

yeah? I would leave us alone and employ you're, probably not ensure the possibility of an honourable, but the free whole life. I would take but other than that I would never have whole life policy thanks for calling Sarah is in Oklahoma City. I Sarah. How are you are you d better than I deserve? What's up? Could am I currently on my own? I cleaned I've been doing that for nine years. Also in school right now Look at my prerequisites for nursing and like it I am terribly started. In an action programme for like are in it two years if I get accepted but I have three kids and I didn't know if I should just hold off on applying or if they go for it

I'm gonna make good money cleaning claiming back and forth. Ok, let's say that you went through a nursing school. You pass and you get your nursing degree. Ok, and what are you gonna do workers and urge right brain and how many hours a week are you gonna, be working? And what hours are you gonna be working and which markets is that? Where you want to end up? I'm ok, but I don't want through all of this and then go out. I can't really used in urging degree like a good one, because it The troll my hours with much more geared to jail if you want, if you wanna control your hours, Gotta have a warm up a place. You can do nursing or you can control your hours. I don't know what that is, off the top of my head, but may, There is one I don't know, maybe there's some some places and flex hours or things that they would work with Europe. Schedule with small children.

Nursing field is wonderful veal and currently the move that direction, but I not invest all of this time: money and energy. Only too realize how I've got small kids and I really dont want work all the time. Why look more normal nursing hours or whatever that is so the gate and decide where it is going to end up with finish all this effort? And if you know but a good place when you finish all this effort than yeah, I would go after nursing a sure. Would the Why are you being self employed where you are right now doing cleaning houses? that you can control it such her hours you can such times and if the kids you don't even talk to somebody inside my kids about play this this morning in shocking com. This Tuesday morning I can come in the afternoon. You, Norman you, can do you know all kinds of stuff? You can't really do that. If you work in a hospital, call I'm gonna blow. My kids have a play in the Uk I guess, but the example.

You, just gotta find a place that you're gonna have the three small kids thing just long as you got it I figured out with nursing then and go for the nursing. That's all I'm saying Tina is where those entranced South Carolina high Christina? How are you Dave I'm good area better than I deserve? What's the started, your class, I made my first week: I am currently working towards baby support. Good. I work new jobs, trying to pay off my debts of consistent. And the IRA, ok I'm I'm not making ground on how much money. Do you the Irish, about three hours? how much money do and on it for two years already how much money do you owe the hospital bills About eleven darlin good your single I am, and your income. Totally. A job like thirty five thousand,

your main job is what about nine thousand? What do you do? Lester, Bellini Rebuild still building. What do you do? I they often currently and I'm a return department for your time thousand our office job in the name of part time is bringing in six thousand dollars a year five hundred dollars a month with doing what the general story, ok good for you, and from our own budget and neutral that is you don't have anything on your car? Low paid for good an automatic card. You know nothing of the sort of my money paid off.

I continue to address current down on that budget as hard as our canning crank up on the income. As far as I can may be different for job, I don't know, and so we can work our way through this you can do. This is probably not take you about two years to get completely clear. Looking at the numbers are given me right now, but it's do you got this I'll help you. You call me back any time

business leaders if you're looking to add to your team and twenty twenty get started now with linked in jobs. We pushed on linked in jobs because we know the right person to have an impact on our company for years to come and linked in jobs matches the right person with a ride. Job so find the right person for your team and give the gift of rewarding new career get started today and get fifty dollars off your first job post visit linked in dotcom slice, Ramsay, that's linked in dotcom, Slash, Ramsay terms and conditions apply, begging for joining us. Rachel is on the line and Pennsylvania high Rachel. How are you sure, what's up an extra, and I want to start fighting for their college? Bad, I'm not sure how to

about it and what is a good ballpark figure, my husband, I should be same each year towards that, will you you shut down with someone in the financial business like a smart vesture pro as an example, and they can dig into the calculator having ascertained what you want to have when there are eighteen, and then I will tell you how much you need to save per month to get there now. So you need to start having the discussion of where you know where you think these kids, what you're willing to pay for, in terms of where they're going to school, if you're willing to pay for Harvard you're gonna, have to save more when debating around about you don't have to save more than if they go to the university Pennsylvania. Are there the pins, late, ok, and so on. In state school institution is roughly anywhere from twenty five to thirty percent, of what a private college will be

and so you know you just start looking in saying this is: where did you go to school by? I went to Mr Courtier University located what budget and my house. I want the ten states, look So then you have a discussion. What do we want for our kids sharing graduate from University of Tennessee and in state school. Ok, we their merry got married ran out of school and shovel and so we were very comfortable pay, for in state tuition fees, they university we were, willing to pay for times more for private use, Firstly, it didn't it I sold. The value was not there there's no are alive. You can't prove it by data. That was our decision and based on that, you figure out how you want to save we're in you talk to that school and ok. What's the inflation rate on your tuition and tuition is less so

nine years wiccan an approximate, it's gonna, be why, instead of today, attacks and then, based on that, you can put that in a calculator and back out how much you need to be saving towards each kid. As young as yours. Are. I will tell you couple hundred bucks a month, Just about do it for an institution roughly so a couple hundred bucks a month per kid going to their college and another attack, free growth. Five twenty, nine or an ear say you can do up to two. In dollars a year in an educational say, Miss Gower into good Road start mutual funds that are performing adder above the ESA. Ninety five hundred, if you're, that range, a couple bucks get your very close to most institutions as young as your children are, but if Darwin really really close than you do a little more detailed research and back out of it and No, you can decide from there

the thing is there someone variables a change in our life over fifteen or twenty years from atomic child is born to Laguna School that in personal wealth, your personal incomes, all those kinds of things so. With all that you know you your project today, you're gonna be off, but you can make very detailed projections. Are you just take a good shot at it like that? Hey thanks for the call J isn't Moyne Iowa high Jake how're, you I'm going how you did it better than I deserve. How can I hope I will first is that you thank you for your ministry, there had a profound impact on our family and just really grateful for what you do like our families in Vegas, baby steps. Seven and it just seems recently, though, that I'm really anxious about what the next few years are gonna bring as I'm looking at it from politics.

Does her killed than a weddings and buying vehicles for them as they go to college and the increased insurance payment interest. All these things and then also life is wanting to enjoy things a little more now that we are where we are- and I just have some anxiety about not our budget still staying somewhat within budget, but yet spending more money on lifestyle and things like that? I'm just so. You have no idea that you have no house by now. How much money is in your forum, one days in retirement, but three hundred fifty thousand your howl. Home is worthwhile to forty your how old, oh I'm, forty eight, so in your putting fifteen percent of your income or more into retirement correct. And you have money saved for college or your saving for college

We have two hundred and fifty thousand set aside for college total total, how many kids three, what agents, seventeen fifteen and thirteen household income, Ninety five shut your little behind on college. I mean you're, not you know. Completely ready by the shirt on the seventeen year old gets there, and so the other some some turning up the heat there to be done He is when you know you're your own track to be a multi million error by the time you hit retirement. There's no question that that's happened, but you're right, there's a fee Things you when you get up we step seven in your dead, free, have paid for house, and you make ninety thousand hours a year that doesn't I mean that can go. You know has been forthcoming where's on crews, yet you don't

Of that you make that kind of money. You know and so you can you do some things to enjoy yeah. And you shouldn't you should lighten up the budget and have some enjoyment money and there is well, but there are you you never make enough to not have to make choices between the extravagant extravagant vacation and by mechanical? You know there's always that choice, and so, go sit down with your wife, and the thing I don't want to have, happen with? The budget is heard of not be involved in her to go well it must be able to buy anything. Now. Where are we going paid off? We did it all and now you're still involved, and you still have to make these choices between the vacation and get car or if we this vacation. The kid gets that car for Gothenburg vacation. It gets a beverage guard and you just me. These choices, but she should be making those two with you. Were there feeling the burden of making up

decisions by yourself and you go oh, and by the way we go to college here. So in other words made. If she knows it's just I worry about it and she doesn't know of now and what I mean thing is: is there are two things to come? Could you be intentional and care oh and wise, and have some guard rails. Yes, should you fretting and ringing your hands. Good gracious. Now your bed free your paid for everything your tracking being a multi millionaire at retirement, and you make almost hundred thousand dollars a year. You should be ringing your hands? This is far from letting it it might not be or pay your light bail. Unama! U way on the other end of the spectrum, so but I wanna be a grown up and address the issues, but them to own me, and so, if you, fretting over it, and I think you are need a back up and just give yourself some credit for how far you ve come. The stuff

have defeated. Is harder to defeat than the stuff you have yet in front of you, and so that's why I mean you got a track record of killing this money thing man, you ve, killed it. An answer. Your journal top percent of Americans and how you and quality of life in the way your handling money. You know you ve done great job show, now. Does that mean you take your we hands off that? We all hope it done during the ditch orders to hold that we'll tenant baby on the wheel in army, or so doing that, but do we the grip of we'll white knuckle now know: may we ve learned of and You're gonna drive your way right through this, the stuff you ve done to get to this point: tougher than the stuff you ve got to do to get past call in cars insurance and your wife, enjoying some money. You're, probably always gonna, be a tightwad she's, she's there to help you enjoy money elsewhere?

have no one. That still does, there sure, is still die. What insurance live to help her enjoy money? I'm a natural spender, she's, a natural savers, so we ve always got that will always have that. Good questions are some interesting discussion, thanks for letting me part of it open a triple eight eight to five five two to five. Common sense for your dollars and sense. Common sense, is so rare in America today like having a super power. This is the diver amnesia

right for joining us America's Davis, whether Madison was constant, devour you and doing good gave our you better than our deserve. What's up, I'm electrician in american area here, and I You know that people like you and work with acquainted, elegant, supplementary insurance, taking an as again, layer and it's like thirty bucks a month before How would you like nine thousand dollars maybe later and I'd be in force for thirty days, and I know you feel about supplementary insurance? Buddy, you have

and thirty down a long time to get that pay out. I don't know, but you feel about that. I probably power your plan and David said three it seemed like a good idea in writing De Beecher any time insurance is there for something that you could cover yourself. We need stop and remember how insurance works. Ok lets you? I open a supplementary insurance lay off insurance company right now: ok you're, we're going to go in partners are going to open it up and it's going to be Steven Davis Insurance company. So the first thing we're going to do is we're going to rent a building harm people too. Sell this stuff her receptionist in a computer tech, and payroll and overhead for the business. If we're gonna start that business right, that has all the

ok and then we're gonna have to say. Ok what would our shores lay off? Insurance ruin ball for nine thousand dollars were the coverage in case someone's laid off thirty dollars. On my end, before we forgot the thirty dollars a month, then we ve got. Some research and we ve got to figure out statistically how often Have we gotta pay this out? Ok right! If we Oh, a thousand people this insurance then we're on the hook for a thousand times nine thousand, but no no chance all I'm gonna get laid off, but out of that, a given year, how many of off ok calculate out how much we'd have to come out of pocket. Ok, so we have to of the more laid off than our cost to offer it to thousand people would be eighteen thousand dollars right if our if ten over more light off it be ninety thousand dollars which probably more like it. Ok

We will take that ninety thousand dollars, which is our actual cost to cover one, thousand people, plus building rent and our payroll and our overhead, we need to make a profit so Roper, offered on there too and then we're going divide that number by a thousand people we get thirty bucks now. What Means to you there, you're buying the insurance is. On average, they have to make a profit. All new at thirty dollars, which tell us thirty dollars times a pay period or per month after month. Ok, twelve times I swear sixty dollars a year to cover thousand so right. There tells us that not many people actually casualness nine thousand I know of at least three people that have, but I'm saying statistically, if very many

location on it. They go out of business dude. Here. Because you're not taking in enough to pay out the man thousand everybody? believe me. They calculated that they know what they're doing that an accident. We do this. So average when you by insurance of any kind. You have to be losing money all average. So they cut back. To be making a profit so average of you buy insurance for your air conditioner on your house breaking on average. You lose money on that you been better off over this scope of your lifetime, on average after all, are they got a business? That's another mouth worked, so all of that said the old, thing we buy insurance for or we shall judge you by insurance for or things you cannot afford to cover you can afford, the cover, lay off its cause, your emergency fund of three to six months of expenses, if I'm in your shoes on my by now.

I am going to have more emergency fund on average there making money only on gimmick insurance and that's why I don't buy extended warranties, I don't buy supplemental policies and why don't you just people do because yourself in through those things simply because on average you have to make money doing that. Otherwise, I go out of business and sir, if you by you buy, but mathematically you're losing mathematically. You have to be on average losing or they would be out of business Hunter is in Houston, Texas, high hunter. How are you Further then well, thank you my course. Nowadays briskly

come down to the refund it in the home, from a barrier to everything here, victory which have already been approved legislative follow through with it. No wonder I gotta go advice on a toy. Do I would not refinance simply to go from authority. Do a fifteen! I would refinanced save on interest if you're doing land, while you're at it get fifteen. What's your current interest rate by three point, six on your home now. Yet no and what is the offer to refinance for what interest rate a basic everybody? A minute really not, I would do that I would not financial, because you're, not gay, being anything, if you take that thirty, your mortgage, that you ever three point six and when you circulate out what a fifteen year payment would be versus a thirty year payment and you pay that, extra mile, the difference as principle pay their own over fifteen years but I do pay a p m. I on the thirty year, could be modified online. I was gonna between them.

And this would be a jail owner, We must fight with a hard thing yes and then the area in which all with no Beumer correct, How can I pay my my dear the p M be a reason to give you the savings. What's your savings on the p M, I about one. Forty him up. Ok, now we're talking Does that eighteen hundred bucks a year What you believe what you refinanced cost there is no, the closing cos the other areas five thousand dollars a year onto it. Ok, so if you save almost two thousand dollars a year takes about two and a half years, make your money back with your savings on P M, I alone right now did that in two thousand and biting hundred? so yeah you do. I would do this refinance in that case, China, the calculation

I read a really really men are really doing. I guess up the networks which to make mercy summit, They announced that you have heard you say earlier you're not to be a quarter which may become a more fifty percent. Fifty now do before the vote. Along with everything, is going to be if every financing to be about fifteen hundred dollars, varying everything only thousand thirteen hundred month make about take all about three thousand a month now. I would not do that. I'm not sure you need this house there, it's a lot of how much your incomes going to go up dramatically. I mean what are you going to one thousand five hundred or one thousand three hundred on a three thousand dollars eat. Neither one about this doesn't fix that situation.

As you see your income going up dramatically, you probably need to think about move another child and the problem a popular answer problem I understand I get it, but it's very difficult your budget work and the different thirteen hundred fifteen hundred and save you, save you at all so, but you do say your income going up the dramatically quickly to where you're not gonna, be a fifty percent like you're getting married and she's gonna. Be there she's, the job or you're gonna take to another job, it's making more money or whatever. If your income starts going up pragmatically go hidden, refinance and do the fifteen year on fifteen hundred dollar, but If your income is not going to go up man, you can't keep this place. It's going to be very difficult for you to prosper, for the house payment this high,

very difficult struggle. I told for you, you do whatever you want. My opinion petrified for this is that over amnesia,

You do open Felicia AAA to five five treaty. You draw up about your life, your money, Clayton says debut, prefer mutual furnish the Ici apps. Even though the concept is similar weather concept is similar in that an extra exchange traded funded, a mutual fun all a diversified base, meaning that what are invested in is not one Spock, our one bar on its across a bunch of different things, so you're diversified, they're, both invested in good growth, stock, mutual fun type things, the differences, the treaty of NICE, these seven per cent of them. Almost all of them.

Associate with the US and be five hundred there. Basically, they mirror and index, or an index fond of some kind. They do if you're, not by an index. Finally, eighty offers a fine way to do it. There's no trouble with that law if you're gonna buy in India one if you're gonna buy nation p five hundred now the ESA. Ninety five hundred is the standard and poor s MP. A rating company they write, the top five hundred stock on the New York Stock Exchange, also known as the Big board. The largest five hundred companies that are publicly traded in the? U S, those files hundred form an index that is the most representative measure of what happens with stock market. It is concerned, by those of us in the business to be the representation of the market. The DOW Jones However, junior about on the news is

as nearly ass good representation as these five hundred stocks of the largest think so. The the Essen P five hundred is considered a one point: zero beta, meaning there. It mirrors the market. Any with a less beta, then that is less volatile than the market. Dealing with a larger beta than one point is: who is more? volatile them the market, so it is the stock market. You're gonna make what the stock market makes no more no less when you buy a Essen p, five hundred index fun, whether you by mutual fun, or whether you buying a t f, almost all e t s fallen category. It sets up that's where they and if they don't them, there. A very unusual- not be careful but be I you're getting into them for other reasons, other than long term. Investing your want that

I've been in and out of something and you want to date, it or something like that, but spy It offers the best known of the ESA. Ninety five hundred eighty ups out there's been around forever, but it's just assistance and pay five unresolved is sought, is meaning mutual funny about eighty after eight years, a lot cheaper, it's fine If you do that, I don't buy. The ESA ninety five hundred for long term, investing because I, by mutual funds that beat the ESA ninety five hundred that have ten and twenty here and thirty or forty or track records of beating the essence the five hundred and so that this the idea of buying eighty ups or buying the Essen p. No load funds is, is a concept called massive investing and it comes from idea that you can't beat the market most mutual funds

beat the market while most mutual funds don't beat the market, they know, but most people are successful either. So you just have to decide. Are you gonna be seven just ride exactly what the market does. Are you going to look for mutual funds that outperform the market and there's plenty that do and so Now we ve got a bunch of research on this. My mutual valentine growth that outperform yes, M p growth than I am that I'll perform their simply aggressive growth that out, once they are simply in international that outperform just and pee. On twenty thirty year track record, and then I look at them to see if there's still outperforming the assembly as a mix overall and mine have be there it's really not hard to find a new surveillance. More, Mr Prodi, I can show you how to do it.

There's plenty that doubt outperform the auction page. So if you're just gonna bothersome bay, the atm response- but I don't really arguments against the idea of it. Just it's up passive investment and. Just to give you an idea of the union Twenty years, my mutual of average at eight point five: three in the US and peace. Seven point one to last thirty. Mutual funds of average. Eleven point: three: the assembly ten point, eight March forty years, thirty, mutual funds. I'm investigative average. Thirty point O four. As a group- and this is my personal for a one k and the Essen peace averaged our thirteen point of We as a group and the Mps Average eleven point, eight, so I'm beating it. P by about one percent a year on average

year in and year out, with those mutual funds and I by mutual funds that have a track record of outperform This'Ll, be so now I dont by E F, because they're almost all s and be indexed. For that reason, it's not that I am against eighty as its against I'm a gives passer investing, because you can do better than that with with your mutual funds, if you want to buy just in Essen pay. Eighty of his family, that's one way, you can do it at another, get another way scanned the catch, those big all right, let's go to on in Denver, hey Don, welcome a driver amnesia Dave I'm thrilled to speak with you. You two what's up. My mom passed away a few months ago, and she heard state is being divided between me and my three suddenly and Jabez, to inherit about three hundred thousand dollars, my

Where is that fifty eight My husband is sixty seven. We have no children, we retired. For a couple years we have been very fortunate to make His money and to say that we have total assets. Both the three million dollars good for you. Hold on? Thank you. We ve been practising you're and suppose for years, smoker. What would you do with three hundred thousand dollars that you didn't need what to say they are. They were the three million. I guess I would give some of it I would invest some of it and I would enjoy some of it we'd like to invest it in a way that will honour my parents. Where the classic millionaires next door, and how's hours. Your three million invested.

Two thirds of real estate Robert, these that we now live off. The ran good. And the other third is and stack stocks in our I raised my stockings in gross shot, mutual funds or individual stocks. Grant that need your time. Mocha show how investments reentered guy my my hesitation About investing in stock First of all, right now in other markets up, but I feel like it's too expensive Denver real estate isn't the real estate is very expensive and I can't buy any bang and the area I like four three hundred thousand dollars So what are you gonna do with ran aground

money is coming to an end. So far, I've gotten fifty six thousand, it's just gone and and bearing checking account at, but I one better data, because I don't want to be tempted to blow it, You're gonna be tempted to blow at your good with money. You guys have done a great job wants you to give some of it. I want you thus some of it- and I to enjoy some of it so much, something. Nice you're gonna trip you been hesitating to do, and I want you to do so. Best thing. You might put some of your other money with some of this money and buy you a piece of real estate. It sounds like I'll, be a fine thing to do. And and I would look for something to give to that- On her memory as well, and if you keep those three things going. Your whole life. You'll always went with money, always be giving always been resting and saving and We'd be enjoying money is lost a good for anything else, that's about it.

Everywhere, wraps it up. You know I didn't Well, congratulations! Remagen box! I love it. This Is that a ram shell guises breakdowns in senior executives or for the day, raising this ourselves more great content or used to catch the most watched every reason? The fairy every day there are several Davies who showed me,

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