What is of rooms broadcasting from the dollar thirty owes its that Dave. Ramsay show that is down in the pay of how important it has taken the place of the dream W as the status and Abraham Sugar host. Thank you for joining us Open follows a triple like eight to five five, two to five: that's AAA eight to five five, two to five, you jump and we'll talk about your life and your money

Laurina is on the line in Arkansas high Laurina. How are you Dave going for taking like how should I hope, And then I are happily retired, we have the two lifetime incomes, each and was invariably home alive. Cheer ass. They sat down and created a budget em, in doing so well for us that thumb, the call back and having just. Start listening to your body cast about four weeks ago, I said another bud showed what kind of way a little bit and showed my husband. If we do this, this in this way can have

of medical bills paid off and three month while he, but let's do it. So what we get free in three months for I am I'm going, because we live in a lovely home that will you want to stay and for the rest of our lives, and we have no children to which we would want to leave that house. I wondering about the wisdom of our very first markets that we could use that money ourselves. Well, now they're, not wise, the because terms of them arm punitive There are about three percent higher on interests than regular mortgages, which is ridiculous. You cannot borrow, but between fifty and sixty percent of your vote you back against your house and the big, The problem is that one in five people who take

reverse mortgage twenty percent. I'm going to default You end up losing the house, shall I never recommend that mining there are really bad plan. I like the idea of you getting hold of that equity and enjoying it? But I think you proud, we're. Gonna have to make the choice if you're gonna be wise between the house or the enjoyment of the equity Personally, I would stay in the house, and you know it save my money in after you get this debt, It often do some things with the cash flow that you have. Would not do that. Do you have a nest egg other than the home and the? the pensions that you have coming in. We have about twenty five hundred, I must say, for emergencies, only have about Can our eleven thousand far one k I haven't touched you don't have substantial monies there,

What is your homework? the hunter. Sixteen may be to seventy and is paid for now it. Got about a hundred. Seventy thousand. No I've gone it well! It's just. You decide whether you want to live there or not. That's what I would But now I would not you don't have any equity, to do a reverse mortgage to amount to anything you might get a little bit out of it, but you're gonna what you have in danger when you do that, and the fees and the interest rate are just ridiculous. A really a bad idea recommend reverse mortgages and want to get you out of debt and, to that end of death as a way to stabilize your retirement in your case and other folks, cases away to bill wealth and stabilize their retirement Sorry, but I'm gonna tell you don't do that. Please, please don't do that. Thanks for the girl.

Guys. There are some financial products that are out there, that are bad financial products, not just bad there, not good for They make the company money in that I'll, make you money, how life life insurance card, laces credit cards the benefits, do not exceed the risks, and the payment and the fees that you pay. And reverse mortgages are one of those gold coins Bitcoin So if you're watching bull moose. And between the snugly, commercial and the war in bathtub use an old actor admiral. Having something that financial thing that mean stay away from it. And the union just name on the right down the listener: gold coins reverse mortgages Thompson like or Henry Winkler.

Pushing those thanks. Guys back, idea shouldn't be doing that. Not The product they are bad products the company that Tom Alec endorsed has had numerous fines levied against them for a while, advertisements for ridiculous, penetrate commission has been all over them and Let me tell you: what's going on, I mustn't Tom's Alex about Guy, don't know Tom or Henry, don't know either one of em I assume their agent book them of what, commercial media, the commercial they thought no more about it than that, but you do the math, and you know what I know about those products, their bad products stay away from them Asia is whether in New York, I Asia, how are you Good, thank you haven't you know better than I deserve what's happening, you think I beg you MIKE arts,

I'm twenty nine years old. I just had a second baby. I am about nineteen thousand that right now, I'm just concerned. Does credit card. I heard about a thousand currencies. I'm expecting an attack, three funds, and I know that One day it will go to my emergency fund under wondering. How do I allocate out the rest. You got any death nineteen Kay making thousand that lie behind they made up to as you'd list your debts smaller largest and them in that order, so we would put seven thousand dollars towards the first seven thousand dollars of debts in that order. Out of your nineteen? They get you down the twelve. What your household income Simply by myself, I bring in about thirty thousand: ok cool, and then we're gonna get an attack mode. Now can

a gesture w forced down any further. Where you pay any taxes, an. Well, that was worth investing it down. You just sit down where you pay zero taxes. In way you have been Why is the one I just got my baby to back I'll pay now about a hundred and hunger on the funding that they believe it was one forty, nine something for the whole year. Oh yeah. You. Ve got out. I was farther lands. Only eight thousand is income tax, credit, gusher single lady with kids, making thirty Kay.

Thats where they ate thousands coming from ok, I would use it absolutely. What at the thanks for the call? Forty eight percent of Americans ac Row- income tax, that's fire. This is that I ran future dental insurances great if somebody else is paying for it, but if your footing the bill, one dental dot com is a much better way for my listeners. One dental dot com is a discount membership. That gets you unlimited, lower rates at the dentist, not just for cleaning, but even dentures implants, route, canals braces and more whether you're 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, com,

thank you for drawing up America. Should Abraham three shows AAA eight to five five to two fathers? The number you know if you have a problem in your life or an area of your life, that you want to make better and or you could do one thing this one thing: you're increase, you're chances of winning in that area dramatically,. Well you'd want to do that. One thing. If you're trying to get in shape- and you did

one thing: what and use the if you do this one thing yet do other stuff too, but if you do the one thing, you're probability of getting in shape goes way up. What's the one day if you're under that with money. What's the one thing you can do that with your marriage? What's the one thing was now One thing with all of those different things, but they're usually is a main centre idea that get this idea going. It lead you to the rest of them. It's the one thing when it comes to money There's one new monthly habit: they will cause you to crush your financial gulls I need to get started right now, there is one thing. You hear it all the time when I ask people who paid off all their debts and they're doing their debt free screams. You hear it all the time say it there. I asked him: how do you get out of there? And they say this this- this I got on a budget

We started working together in our marriage on a budget. Budget makes you your money, boss,. The money being about you, you're, the boss of the money, and when- Start budgeting, you're, gonna feel power, you're gonna be you got a raise, and I know a lot of you think, budgets are really hard to make or budgetary form of punishment or something, but a budget is simply a spending planet. You just telling your money. What to do you need? of every dollar an assignment every month, that's Are we named the world's best budgeting app we created several years ago and of updated it monthly. Since then, every dollar Seven million people are using the every dollar budgeting abbot is the world's best budgeting, as it is plainly free and it's the one thing. The one new habit. You need to start. If Europe there are some of the other stuff. I talk about air. It sounds too bizarre, too crazy for you.

Do this It will lead you to the other, thinks it's the one thing go to every dollar dot com, download every dollar put it on your phone. You in bout. Get together takes about ten minutes to set up your Budget You are telling your money. What to do? You become the money large with every dollar. Lisa, isn't Wisconsin highly so welcome to the driver amnesia. Someone tragic in Macao. Sure, what's up It has been our in financial peace University where in every dollar up and were getting on the same page words about a third baby step. Three, and my question is why I'm a rental property? We were dumb and we bought one so far thank God, we spend blast wet containing the more listening to you and the more I am learning I'm getting more nervous, barely

he's coming you ah July, and we owe a hundred and nine already and it could probably fell in the area of one fifty right now make for you. Do you think we should stop Aramco Annex VI through our baby stopped it does whoa three eighty a month which has helped us through baby step too. Watch your household income, a hundred thousand What are you are on your home. My primary home, we all two forty two. I wouldn't sell it to blue baby step to, but might just salad, you don't know. Equity in it. Three. Eighty is only four thousand dollars a year. Cash flow one heating and air unit one bad tenant? you don't make money, you lose money.

So you don't have much margin in this house really. Its work so far because its work, but when the tenant paying and goes in a chapter, thirteen bankruptcy and refuse. Moving you can't get em out. Could you can get the bankruptcy cord to give you permission? Do and they sit there and they drain you dry. It's gonna turn the other way pretty fast or heating, and air system goes out. Our roof leaks are hot water blow eater blows up means stuff happens to houses when you're the landlord and you ve gotta, have some money to do that. You don't have spread in the steel four hundred eighty bucks a month Brad Manger! Probably over there, it's a time breaking even slightly making money or losing money, you're not clean. Upon this so that my The reason I would sell it if I'm not gonna, sell it. I am lean into a pretty hard after you get your baby step, three done unless get it paid down and paid off as soon as you can, because

My question is: can we all such a little amount? I mean one: oh nine, isn't little by little House compare your implemented is compared to your what you and your primary and effective and control now show it The first thing you do in your baby step sexes, you're gonna, lean over under that they and knock it out. Your children are born. Ten yeah may be spent five years in getting our three years and they get this thing paid off before you. Their college funds. That's not gonna, be the end of the world, but it's a part of your plan, so you just got decided just where I want to lean into or what I rather lean into just directly funding their college funds. Building up retirement and and by TAT Bottom rentals for cash later after him, home paid off that probably as a shorter pass but I love real estate and if you love it- and you really really really want to hold onto that's fine but

point is really not make any money on today. It's not a blessing. It's not really like you know, the scope of time, you're not gonna, make money on a rental that has a four thousand or your cash flow it just there enough room. There are four spit. Think about which are easy to make four thousand or do some miles without being two thousand hours and bad and without putting up with all the stuff in dealing with tenants and data collection, and they all without me You dont lot of work for four grand shown that that's up it is just not a big deal. But if you wanna, if you want to fight and push it down, that's fine. I Personally, probably would sell it in your situation. Among US my hand on the table so stupid Crazy in all that, not that's not the case, but you ve done a good job. Yet more! You are if you want to push through and hold it, that's fine, but I even as much olive real estate. I probably would get clear of my home

and everything else and get everything else, Laden and a foundation and then by rentals with cash actually does I did, but I didn't own any rental staff to make that decision. So I did it with my current real estate portfolio. Thanks for the car, Open found a triple eight, eight to five five, two to five, thanks for being with us Vanessa. Instead, grandma hurry talking about a manual underwriting for a mortgage Is there something similar to do when looking for a rental, so many people require good credit score. Well you just asking the owner if they're allowed to think when you're renting, It does. Is the landlord allowed to think if you have no credit score because you have no dat because you, I believe in borrowing money, and you have a really nice emergency fund and a strong budget,

makes you a better tenant. Then someone who has a great credit score with a bunch of debt and doesn't have any room in their budget. Makes you more likely to pay, but that would choir that the landlord has the ability to think not all of them are allowed to think some of them are a management company and they have abortion another city, and they said don't went this apartment unless you get a psycho score, even The person is worth ten million dollars, has a million dollars in the bank and has no bad at all,

but they don't know. If I go score so can you think that's the question she ought to know. If I go score, I couldn't rent from a place like that. They wouldn't rent to me. I can write in check and by the complex, but they won't rent to pass at world level thing is this: is the diversion collecting money can be tough for small business owners and sometimes no matter what you end up chasing clients for payment. There's no magic solution, but making it easier to pay certainly helps. That's why when it comes to payments, I can't say enough about fresh books, its accounting software that helps you get paid two times faster by allowing you to automate so many parts of your billing process with fresh books. You can just sit back and collect payments, try fresh books for thirty days, free afresh books, dot, com, Slash Dave, Ramsgate, that's fresh books, dot, com, Slash Dave, Ramsay,

wanting us: America, Woodland, Europa phones are AAA eight to five five to two vibe Aaron is whether in oh, I owe swimming and push the right button. There's Aaron is in a little higher and how are you there were very don't better than I deserve. What's up. Ok, my question, my wife and I was currently we have about twenty four thousand dollars Colbert. We back about sixty five thousand, after we all

our car outside your car, applied then along about seven, that my question is: is: should we Why? Don't we get our smaller death? should we try to sell those car, keep it alive people, I don't want to keep it, so you don't want to keep it because the dead. Well, most good there we really rushed into had. I think we got a bad deal. Nothing! I really don't think about our other. You bought a car they're stupid, had always agree, but I'm not that I don't know. If that is the reason, the salad Now here's the thing You would never buy a car again, the rest of your life when the total of all the vehicles that you own are more than half your annual income.

You are probably pretty close when you baltic carcasses carpet you right up the edge. Now, though, the cars only worth thirteen It only solves a portion of your dead problem. You got, the seven thousand dollars or the bad. If you sell it right right and you gotta get in the car. Oh, it's not gonna move the needle that much on getting you out of that, but we do need to be able to join hands and look at the thing is it sits in the driveway NGO? That was one of the dumbest things we ve ever done. We will never do that again. And we need to be able to do that as a couple both of you you ve done that, but she needs to do that too. So that you never have to have a fight about this again, it's like now. If we have the cash, we will be car. Otherwise we are not buying the car, for the rest of your life. You know them dear, but she does

the carbon I'd like you to shaded, because it just like screamed like screamed at your your stupid everytime, you see it yeah! That's what I'm not going up own stuff like that David just it just it ever look at it? It reminds me I did some, don't I get there, But I think I think in this case you roll up our sleeves and you pay this debt off you. Get our really really tight budget. And beans and rice, rice and beans you'd only to see the inside of a restaurant leisure work and there you need to have a garage sale. You need to sell so much stuff, the gets think their next and let's roll up our sleeves and get this dead cleared up. I think you can pay off twenty thousand hours with a debt Megan sixteen about eighteen months, but it's a beans and rice no life budget and you can do this. Couple thousand dollars a month makes us go away in a year. And that may mean you pick up extra job or over time or some sad us or you might I'll go away, and here, if you did that, but

the over twenty four, pay taxes knee you not got much left to do that faster than about eighteen months. That's really tight. That's a tight budget to do that, Next is gonna, be Lindsey in Colorado. I Lindsey welcome, but show How are you better than I deserve? What's up your opinion in time of transition, my big question is: when do we start building a house? We just acquired the land its high rent, where were located in the mountains, and we are currently paying close to grant for our rent and we get there. Situation where we can move into a house that we will be moving there, the first week of February twenty Greece I ran to fifteen hundred a month but we are just wandering when we should start the construction The whole are you oughta that we

Twenty two, an hour student wound that in that, at that What is your household income? It is closed. One eighty while show your call twenty uproar, flash them. We can by what is done so we have. We have currently about sixty k, cash already earned a day off and so, when you add on because obviously further construction alone, we will need to have in I'll, probably fifteen percent, at least down to start the construction along with that You know pretty close to a hundred thousand, so I'm really existed. Probably yeah somebody on the land. Then we will be made visa. Only about forty thousand

below forty on it warm watch a worthwhile, probably over a hundred thousand like it like, set right with a peak view. You shouldn't have an arrow get my construction work. No. No, we know you all, but I think you only another thousand down to do the construction on that got some one January in the property? The but he's rolling action alone. They pay off the first construction and takes a first position and the could he that you ve gotten the property couch in the equation trail and I take a year, though, for you to get that equity. I got drown entered yeah. I would the impression when you type vague, I beg you probably operative. Rembang that depends on how it depends on whether structuring the loans and what they're doing but yeah there two they typically do want to wait and see. The value, but obviously gotta you obviously gotta get by on right.

We get yeah yeah, we did so. How much would you recommend as having cash before we start that can, before we move forward the construction. If you ve got to, structure loan lined up to cash flow. All of the build Can I have any ok, I do care that you have your emergency fund in place of three to six months of expenses. Care that you are one hundred percent debt. Free sawed right a day for twenty thousand. Set aside in your case, may be another twenty thousand, maybe thirty, four, your emergency fund, which pretty, dreams, the money that you ve got now. That leaves you about ten thousand left over to be able attack the other stuff are to start, the process. It's gonna take your time to do that and why you gotta get play. Drown a builder selected, do you know what you gotta get the construction loan lined up so be during all of this time. You're gonna be budgeting very tight and building up some cash to add to the ECB

Now, when you finish the house, your construction, and your land, to have equity, in order to be able to load on your permanent, take out loans, that I do care about. In other words, I don't want you me, and I want you owing one percent of the value of the land Together in your dad, which mean who does stupid build. If you did that, I'll show you build a house in such a way that the- equity in the land and the fact that you are building You know, you're, not you don't pay retail to build a house no, no, my husband is gonna, be functioning as the project manager, as he has some experience that all of that leads to Spencer, homer you plan on putting on the hundred forty thousand sharpish property. We would we want to shoot for probably five

Ok, so you shouldn't have over one hundred now, my child, you shouldn't have over four hundred and enough. If the value of its five hundred you oughta be, and there are four hundred or if you if the value of its five hundred I gotta be a me if you're ended at five hundred the value to be seven and that the other members. With that in mind, I don't care if you ve got cash in it. Now I d Want you to have a net deal when you're done that the total of it Creates a mouse payment. That's more than a fourth of your take on bay on stay near fixed that a guideline that keeps you from India,

was too much debt at the end of the story, so you're fixed rate fifteen year fixed mortgage for the payments, no more than one slash. Four of your take home pay. You got substantial equity, do to him being a project manager and due to the fact that the land is valuable at the end of story. If you've done all of that, I don't care if you got a lot of cash in the deal but get that free and get your emergency fund so you're ready to go. This is the Dave Ramsey show

Our scripture, the day, Matthew, six, thirty three but seek first, the kingdom of God in his righteousness, and all these things will be added to you and reward said. Don't find the fault find the remedy. A man Trent whether strengthen Missouri hydrant, welcome to the driver, amnesia For me on certainly are gonna help. Ok, so we started your you programme started working a baby steps back in middle of December. We have about thirty thousand dollars in emergency fund savings,

We owe about nineteen on our final consumer death and we were wondering we pay that off being as well. Have a feeling iris audit of about eleven thousand dollars. Or do we wait until the IRS? it comes through we, you know everything squared away, and then we pay off the consumer debt after that, What do you mean pending? If it pending out. How do you have an amount? They ve sent an amount, but I'm working with the sepia kind the documentation they just sent over what they think we owe currently. What does your Maybe I say they say: don't pay because we're still worked and they say you owe that they said I don't. Ok, you promise don't they are as make mistakes all the time like that.

I've got a bill from another day for twenty five thousand and handed it to my guy started laughing. People do not add, and so we're having to file stuff from a mummy. That happens all the time. Dont- do their own paperwork so my guess is you don't have that bill. So what is your income household income? We my wife make around two hundred and twenty thousand here: ok, So when did this audits process start on the eleven thousand? I'm it started back in August, twenty eighteen. So it's been quite a while It would have been going through. That's been dragging out. Ok, yes, would write a Czech today and be dead free. If I were in your shoes Would leave you fifty thousand dollars in your emergency fund, which is,

to pay. Eleven if it comes up but I don't know I don't think you're gonna o this, based on what you're telling me you're ba? Doesn't thank you? Oh it it's dragging because he's having to prove it. Fourteen ways are she said? to prove it fourteen ways to get the stupid KGB back off because they they do not add down. There sometimes and sometimes you run into a smart one, but sometimes you don't show and these computer generated stuff that comes out there that where they just literally dont know how to put seven right column is ghoulish, so yeah. I really just. Experience and based on the way you describe the situation, but you make plenty of money. You got your emergency fun. If you want your neck, step two b and baby step three to be fewer emergency fund up a little more. Given what you make and given that you got this hanging out there, that's fine before we move on to babies, have foreign start doing your investing, but

if you're doing our stuff, we tell you that without knowledge in the bank be dead, free, go back to two thousand dollars and raise it up three six months of expenses and If you ve got money lying around to pay off their debts, you pay off their debts, and that's where you are, you knew that. That's what we teach Daniel is Weathers Danielson Taxes high Daniel. How are you. You know better than I deserve. What's up, a question about a half my life in our brother inherited. Trust me with those shroud, what to do with it, it was was dumped on earth so to speak. About a year ago we ve been response, for the taxes is any If anything like that, out bake it? Currently, nobody occupied because mess up the arrangements where I care Medicaid with one another, an arms what I've been told

It's got enough money well at what I was gonna have because bent old it's you sell it out right, some of the money have to go to the living or you know, I'm dyin they did this to dodge Nursing home. No, the last grandmother didn't wanna be put out on the she was afraid, usually put out on the street right. Oh, she eve Here's is, I was told by after my mother died. She wanted to give the house do well off and our brother well being right being put out of street. You didn't know, wedding dress! whenever the terms of the living trash and eight that you, sell it I will start by lawyer. We get inside, didn't, sell it and if we fail

then, we give it up. More less is what we were told, Who give it up to you to give it back to her? great given backdoor, Why do you want it? That's what I did It sought it's your lunch. Why are you wanted no bought? Nothing in this situation is a blessing. These people are dumb they put together. Put together a living trust to do absolutely nothing except trap. You. I agree with you. This is still get that right, Best thing to do is show your mother in law is alive and she owns the house other than the fact that don't get in your trust, the Senate to you. Yes, yes, it's in the charge of erosion hours, my mother, the terms the trust hours, long she's alive The money would have to go to her correct

meantime, you can't read it and you have to cover all the expenses because she doesn't have any money left everything she has done on marginal their recovery. Was governed the expenses, nothing at all, a year two years ago. Is so she lives in a nursing home here, ok, how's, our health. Her mother lived to be ninety the last twenty years in a large. Now, though, we don't know, you know it could be something somewhere. And those ladys out suddenly like seven. If I show you shall at the money goes to her and she uses it driver nursing home. Yes, do it. Do there's a night, it's not a blessing somewhere. Did not think this through. I think they were dodge paying a nursing home is what they were doing. Was I'd like to me, and you really can't do that

So there's, ah, I I would get out of this of our in your shoes thanks for the call boxer took counsel nursing homes. There's Medicaid, which is a fair, and that is for poor people, you cannot fake. Like your poor people, by hiding assets in trash cousin, finds it. There and they have the legal right to look back five years, an undue anything that was done answer you hide assets from the government in order to qualify for welfare or, you can be in a nursing home and you use your funds to pay for the nursing home, which is what you should new, morally, legally. Financially. Sometimes it's tough If you go to a restaurant, need their food yet to pay food. If you got a nursing home user services, you have to for their services, should together go the hospital and you get care you have to for that care, that's life works

and so don't try to. Let someone tell you you can hide your assets in order for you elderly parents. Grandparents. Whatever the end? and a welfare. Government subsidized nursing home. That is only for poor people, not people who His assets to look like they were poor that doesn't work its welfare fraud. They will look back five years. They will undo it and, if you're really egregious and how you go about it, they can prosecute you criminally So you don't want do that. I'm must say that's what happened in this gas case. There's a lot

happy, why there's been a lot of energy trying to not pay for their nursing and that silly you're using the services pay for the services. Just like you pay for rest from the same thing that puts us our that I've Ramses show in the bugs we'll be back with you before you not in the meantime. Remember, there's ultimately only one way to financial peace and that's the Wolf daily with the Prince of Rice, Jesus guys, latency senior second user for today raises this hours over, but you can find more recurrent in what are you too to catch the most watch, daybreak Debray screams and the fairy everyday millionaire? Second go to the neighbouring. Show you two. If you're, looking for fun and practical ways to save money in your everyday life, you need to check out the Rachel crew show a podcast from Bunny expert, my daughter, Rachel crews, guys its rights of creators and I'm so excited to tell you about an ipod. Has a lot of you, darling, paychecks paycheck their end ass. You don't even know where it began that they have this need. This wants to get in control of their money, and is that you use you have come to the right starts. So each emphasising gets a time of inspiration and practical advice not subscribe to the rates of crucial podcast, make sure you hear more from the Ramsay network, including the Rachel Crucial wherever you listened, pod guess

James producer of the Dave Ramsay Show. This episode is over but check the episode notes for links to products and services you ve heard about during this episode.