Live from the headquarters of Ramsey solutions. Broadcasting from a dollar car rental studios at the Dave Ramsey Show at all home mortgage has taken the place of the Bmw status. Symbol of thank you for joining us America. We're glad you're here, open phones at triple eight, eight, two, five, five, two, two five! That's! probably eight million two hundred and fifty five thousand two hundred and twenty five Jamie starting off this hour in Missouri, Hey Jamie. How are you.

Hi, I'm good. How are you better than I deserve? What's up Taking my call, so I have a question in my sound like a small location to somebody, but it seems like a lot of money twice, so I wanted to ask about it about seventy thousand dollars in student loans. That's right! Now we've been trying to kind of work I can baby, so we've been thrown everything. We've got towards the loan, and as of recently, I I feel like I need a cell phone we're going to put three hundred and fifty bucks to buy new phone and I know that that seems like a lot of money to us just to put down on the cell phone, but I like I have legit reasons why I think I need to get a new one and we have a lot of like changes coming up in our lives recently. I just wanted get your input Yes, three hundred fifty down. Just to pay your the full price- I guess full price.

Trying to precisely to buy it what's your household income. So I'm the only one working right now and I make it forty five Fifty thousand a year, pretax, that's good overtime and Your husband doesn't work. Why He is currently finishing up PA. He had a job. He worked at Walmart just like. Shopping means absolutely nothing. Bundt cake, be finished with school I'm a graduate in December about a week before we have a fifth baby. The reason the question like yours is important is not because through two dollars is important in the scope of your life. It's because you're, in a judgment. Call here on what focusing on what you value- and important and if you're, if you're focusing

I'm finishing PH school so that his income comes up and we're trying to get out of debt, and I've rationalized the purchase of something that I shouldn't be purchasing. That's a bad thing. If we're, sing, something that is a necessity. That's certainly an ok thing. We do once you buy food and we do want you lights on, and so why is it an upgrade in cell phone is a necessity and not just want so I, what kind of crazy, but I have on my phone for almost seven years now. What does your homework. It does work. I work as an operator necessity so wise and upgrade a necessity. Because I want to take pictures of her baby when he was born in my phone out. At the camera- and he doesn't it's even worse honestly, right now,

Keep that reason, but I just want to have good pictures online personal training. They don't use a cell phone for a camera when cameras are cheaper. If that's the only reason you're buying it. Ok, I will get you a cheap camera. Look at your little digital camera and take lots of pictures of Junior for fifty dollars. So unless I don't know my camera, I mean. We do have a camera image, it'll camera yeah, I mean that camera is about ten years old. She was pretty old, there's no hardware and squeeze your camera on your phone takes pictures too right. It does have two ways to take pictures of the baby. You do what you want to do. You call me and ask me this question so I'll give you an answer. We have rationalized and upgrade, on the emotion of your child and exercise over your value system something you need to break. This is

test. Are you going to pass the test because they the scription you've given me of why- we want to do. This. Is an's death, only a luxury. It's definitely a want. No one's life in danger. It's not a necessity of this household. You have the ability pictures of your child or not going to be damaged in counseling when they're thirty 'cause there's no childhood pictures of them. You just want upgraded phone? figured out a way to blame it on your baby and you've got Stop that call of decision making process. That's why it's an important question, and I appreciate you asking it. I had so this took it out. I mean I wasn't exactly the same thing. The guy that used to think when I went into Costco or SAM's that the reason they checked your receipt on the way out was. I thought Federal law you had to spend two hundred dollars: I'm bender by nature I can rationalize my butt off on something that I just want, and one of the big,

if it's of me going broke, was that got fried out of me not the point that I'm so frugal. Now I can't breathe. I actually still have that spender gene inside of me and I Do enjoy buying some nice things now I can afford them. But I had to reach this point in my spiritual growth and my optional maturity that I did not use a false making paradigm to make a purchase. And when I got past that then I enjoyed purchases that much more rather than back when I used to just go: oh well. If we don't do this is just about as a one time thing, and if you pass up on the one that I've got all the rationalizations down, I used to use all of them and it got me in trouble. And so one of the things that you do you transform your heart while you're transforming your finances and the test. Don't flunk this test

The next test will be a minivan thirty five thousand three and fifty dollars they'll, another test following this, if you flunk it, you get to take the test over. That's how tests work and so it important question. Although it sounds trivial and you were little, afraid it was trivial. It's a hard question and your you're, creating a new muscle in your heart. The way decisions when you pass this test, so that's very important task. We all have this test in America at Times, Congress functions test everyday and on It causes overspending. With rationalization, an it's hard. It's hard and I'm not going to make fun of your pick on you because of the triviality of your of your question because down inside of that question is a very important question. It's a very important test. This is a test, of the emergency financial peace network,

alright Zane is whether Zane is in is in Missouri. How are you. Alright Dave. How are you better than I deserve? What's up? Well got a quick. For you about a house a little bit of background. I just I graduated college debt. Free. Congratulations! What's your degree in, thank you administration, wonderful, good, for you, uh huh, just got, engaged and don't get married next fall big here. Thank you, I have an opportunity to my house and your plus I've got to alright I'll tell you when we come back from this break, we'll hear the rest of your story and give you a good solid Ramsey answer this- is that Dave Ramsey Show

business leaders if you're not using Linkedin jobs, you are missing out our Ramsey solutions. Company page on Linkedin has over one hundred thousand followers that our team communicates our current openings to we also post on Linkedin jobs, because we know the right person will have an impact on our company for years to come. Get fifty dollars off your first job post at Linkedin, DOT, com, Slash, Ramsey, that's linked in dot com, Slash, Ramsey terms and conditions apply. Our our daughter was saying in Missouri College Business degree, debt free, getting married and are thinking about buying a house. That's about how far we got the conversation. So tell me the rest of the story. Yeah!

basically what it is. Is I've got the opportunity to buy a house from my parents it's a house that they've had as a rental for awhile and be honest with you. They laughed at it renders didn't in the greatest shape and uh, not really wanting to be in the rental. This anymore and I actually like the house- and I've got the got the cash to do a to the house. Offered Maine, basically to do like a rent to own through your with no interest in that I could basically have the house four and six years, a little over actually I say: is it better to go to the bank and all the money rather than hold money to my parents? I don't know yes, it is our our is slave to the lender. The

Of gravity says: when you jump off a building, you will go down to the sidewalk. And there are no exceptions. You can have a nice master You can have a mean master. You are always, you are always a slave with a master when you borrow money one hundred percent the time- and so thanks dinner, taste differently, Might not be so much for you as is just make sure new wife feel weird: ok, because she owes them money and she took your Mama's baby boy away. And she owes the money it could change the relationship with between and your mother. Which is already a difficult relationship by the way. Ok yeah, so don't do it don't do it don't do it? I would

if you're going to do the deal, if you're going to do the deal, do it with non family debt? and so I love the idea you set it up to pay off now question? Is this when I was your age the I would have made would have been, because this is a bargain. It's a project, and it's going to result in a nice house after you're finished that you can make some money on and that's all you're, considering an if I'm yuan, I'm your age, one hundred percent of the time I would have been over the moon enthused about this idea. The point that I really would have to the point that I really would not have given my wife at chance, my wife, to be a chance to speak into this deal. I just would have done it yeah. I don't do that. Ok make sure that you make sure that all of the reasons that you have in your head, that this is awesomeness beyond belief, are quieted

you keep your mouth shut and you let her actually express' what she thinks. Of this deal, because I'm not sure it's a good idea to do a re have been your first year of marriage is a good reason. It's a good! It's a poor way to start your marriage right right. Now I'm I was actually planning on. Have it done prior to us getting well, that's good! That's good! until September, and actually, basically what I mean undecided. We will move by house, we just hadn't decided. Which now she's not to obviously but we uh, so the big thing is to make sure she make sure she's on board an she's not on board, because of Zanes zealous, for this deal, make sure she really actually, but actually really really really down inside thanks,

good idea, spoken by a guy who used to do that very well. Took me about thirty, years, which is how long we've been married, so I tend see what needs to be done and get about the business of doing it and then I'll opinion after I'm done- and this is not good relationship A good husband so be a good husband zinc all right numbers three is one in Now you want, how are you are you Davidson Honor honor speak to you, sir. How can I help so at this? Is a career question actually specifically beginning my career I'm in. I have a good problem. My hands deciding between two interesting offers, narrow down between a high risk, high reward Cory, awful working for an entrepreneur well look for a few years and runs a few businesses, and he wants me to help him expand into new businesses and he believes someone had

located and will work with him and he's had trouble finding the right people and he's willing to put the insured under his wing that just came up last week and I've had an offer to work for a big company, stable company at a great salary, and honestly was you know the law for the perfect offer. Now it's made me doubt: does the offer to work for the entrepreneur aligns more with my long term goals of being a business owner myself. The offer for working for this company is not specific So what is the company offering you? Money was if they offer me five thousand starting salary, plus a ten thousand dollars signing bonus right. You just graduated from college. I graduate in May. Okay, in what field it is a financial services but I'll be doing some data analytics for the company good for you, wow Data analytics coming out of undergrad.

Undergrad. That's right coming out underground bank in eighty five good for you, it's going to take me there going to training. So that's that's attractive as well to me about that offer very attractive so also preneur high risk going to pay you, so they are part of the so a little background with him. He was my wrestling contract in high school. I had to leave this game to run his businesses and we've been doing very well, and he said to me was hey. I know you work hard, but I need motivate you to work hard, so I'm not going to pay you as much as he but the other office I have you want me to have skin in the game so even offered mean I'm sure I could negotiate with them, but between thirty three thousand. He wants me to be hungry and get after it so so all of them. Have you noticed that that no one stayed with him. He doesn't Anybody and that's why it needs help, so that's

the point? I know why 'cause he keeps all the freaking money. That's why uh huh. If it was sixty five or seventy with increase? is based on your bringing value to the guy. I am showing that you're bringing in more than you cost fine. He just for slave labor I'll pass. Let's see so I think that's an interesting point. I thought you have to think about it. I do think you have some partners were Fram guy somebody, I've known for awhile. You know I'm sure in the business world, specially there should be others. Yeah he's also known you for a while, and he also knows your worth. Eighty five thousand dollars in the open market. We've proven that and so it would be valuable for you to go to work for a guy that hasn't trivial, real thing, rather than the big company the it's not worth fifty thousand dollars a year

That's what you're paying for this opportunity. Right you're writing him a check for fifty grand right ' I hear you? Let me ask you, though, so We just in the beginning of the conversation last week at least once we get more, information about whatever implied me working for him. If I do meet with him again what things do I need to get? You know on paper or just clear to myself things that you would tell baby your. You know your son. Ask yourself what what how big a check? Would you write him to get to work for him? How big a check would you write him because I'm going to tell you, don't take the job now? Ok,

would not write him a check for fifty thousand if there some upside, and he can show you where the upside is financially to you other than you just being meant toward by him. Which I'm not sure he has Anything to give you because he's never really grown any leaders if we had a room full of other leaders that he grown that were loyal to him, because he was good World Class leader himself, then fine, but he can't keep people is what you told me We figured out why. So if you, you know, I'm gonna get in writing exactly what has to take place in order for me to be winning and in order for me to get raises, and in order for me to participate in the profits, and if I like. All of that, I might take sixty five or seventy. I give this to run. That's it. Let me do

your story about two families that are very much alike in a lot of ways. Both families of two working parents in a couple of young kids, each as dead in the struggle to make ends meet but they're, starting to make headway with their budgets and smarter decisions with money they have dreams and plans on the only real difference is that one family as the right amount of term life insurance and the other doesn't big difference. If one of the parents die- and that does happen there will being would be destroyed. That's why, every day I talk relentlessly about getting term life, insurance, go to Xander, dot com or call eight hundred three five, six, forty to eighty two in the lobby of Ramsey Solutions, Cortland and Emily, our weather's, all my dad for each day. What's up guys not much native, are you forty all live Rochester New York? Wow? That's a bit of a hole to Nashville! Yes, sir, welcome and all the way here to do that free spring yeah absolutely be paid off. Eighty six thousand seven hundred fifty one and seventy eight cents

thirty five months way to go and your range of income in thirty five months, forty thousand to about ninety two thousand and nine. We all do for a living, I'm an architect! I work in a perinatal office, okay, very good, very good. So how did the income double one of you got a job that didn't have one when you started well, we started you know before we are married and once we got married and later moved to Rochester with me thanks a difference. Yes and then we combine our finances and then we're just taking side jobs gotcha. So you been married a little less than three years a little over yet over three years, yeah, our and Mercer was October. 15Th will get happy anniversary. Thank you. So what put you guys? Obviously you're getting married? You start looking at the money situation, you're going: oh crap there's eighty seven thousand dollars and at what? What kind of debt was this

Well, most of it was my school loans, and then we also had some cars in a couple. Credit cards are wedding rings or wedding rings, important stuff, so Emily looks up and goes on bearing an architect and he's got a lot of student loan debt. So what does this conversation sound like and what got you guys started on this journey? Well, I was introduced to a few through my church and I attended when I was younger, I didn't really apply any thing, I learned that no one of those kids- that's too smart. You know an then once I introduced cork to fu We decided that once we got married, it was something that we wanted to do and he was the nerd that I needed to actually hold me accountable and then once we got married, it was game on ok,

six like a system like a process and especially proven one yeah, very good, okay, so game on we decide we're going to get after this. What was the hardest part of that three years. For you, your first three years of marriage, all you did pay off debt. Basically the hardest part I think I'm just it clicked with me and then it made a lot of sense and I think the this part was- I just got fired up about it and try to tell other people about the system that I'm so passionate about? Who who I think that was the hardest part in and seeing some people you know, go another way or it was just it was. It was hard for to see all around me not doing something working so good for us what about you, Emily For me, it was just finding the balance.

Between being gazelle, intense and still having some little bit of a life food, food yeah things like that. You know just understanding that we still have to have to live, and down southern there's, a little bit of not tension in the air through the process. Yeah, that's good, that's good, Well, free spirits, nerd, usually that yeah and that's a that's a very healthy thing. The good news is you're learning, learn to manage that as one of your first orders of business in your marriage yeah and that It gives you the ability to attack a lot of different problems or opportunities that come up in there. The same thing sometimes well done. You guys very well done all right now, you did it. You pay eighty seven thousand dollars and thirty five months. What's the secret to getting out of debt, the secret is the budget that

alone, I think, is the key piece to any couple's finances. I think just following the budget doing it every single month and coming agreement on that, I think, is the most important hard to stay in agreement up and it depends on yeah, it depends on what the disagreement is about as to whether he was wrong. Basically yeah, that's great! I love it good for you guys it's a big deal and again it for. Those conversations that most couples never have and you manage to do it in the first three years of marriage. Absolutely that's very, very healthy. 'cause. It didn't feel healthy, I'm sure some kind, a little tension in the air, but that's there's a lot of good that came. Obviously it interesting Nur for US nerds, Cortland that when we

actually start applying stuff, and we can see the math instantaneously and go oh. We just do this and then can you find out there's human interaction in the way exactly? I could just sit in the office all day long and then go to sleep and do it again and do it yeah yeah, I just crank it just. Do the process just collect the check, pay the checkout link to check the checkout. This is not rocket. Science. No humans get involved right, yeah, it's just it's so, such an interesting process to grow up in very cool how's, it feel. It's the it's relieving! You know, I mean we now everything so even though trip down here we had everything planned out and it just feels good know. You go out to dinner and it's like we can get whatever food we want, because it's part of our plan and our bills are paid. So it's just that

if of knowing that everything is covered and we can just enjoy our lives. I think that's where the peace comes from, and financial peace definitely yeah go to dinner in Nashville enjoy your time here, make Two thousand dollars a year. You can drop whatever on a dinner cash for it not a problem and enjoy the night. Then there's no after taste like each day like that, like a a financial hang over from right under right right and you don't go home, would we do with those who do and all that kind of stuff that most people do when they left? They live their whole lives that way, and you just get to do it. Live like no one else later, you can live and give like who also your biggest cheerleaders outside the two of you. I their families were very supportive, but really anyone who we told that we were following plan, was in support of us and the sun. It's really nice to have just a big group of people who were on our team but none of them would do it quite to suit Cortland.

I don't think anyone could have very high standards for myself. So he's trying talk all these people into it, wouldn't do it. He said I love it. It's easier to cheer for someone else is doing it. It's different, very good! Well done you guys very, very well done. We've got a copy of Chris Hogan's book for you everyday millionaires, you're! Well, on your way to being that you're debt free make good money. You know how to work together. You've got all the stuff turn the page go to the chapter and become hopefully and outrageously generous in the process way to go, work, proud of you here. Well done! Well done! garland, an MLA from Rochester New eighty seven hours paid off in thirty five. Five months make Forty to ninety two counted down Let's hear a debt free, scream, three hundred and twenty one

Congratulations. You guys very, very well done It's done folks! That's how it's done so. The question is: what are you going to do? Eyelash question all the time, because sometimes some of you listen to the show for the mere entertainment of it and for God, along the way that we actually talking to you yeah, you yep, you that's the plan. You need to do yes, Ann you're, driving on the interstate right now. Listening to this you're on the running trail during your morning run and you got the podcast out. And I recorded this five weeks ago, but you're just now getting around to listening to it.

Today's the day you were supposed to listen to it because, Today's the day you. Are going to decide. This is actually you were talking to yeah order like to have no payments. No master card. No, American distress noticed bondage, no fleeced payment and no private room for Sallie Mae in your home. Not even a house payment. Feel well, Could you become

yep yep, that's how it works. This is the Dave Ramsey show Our question today comes from blinds dot com. They have a one hundred percent satisfaction guarantee. That means, even if you goof up, if you miss measure, you picked the wrong color, you open the blind, you look at it. It won't fit in the window here, had them on dadgum it

then you realize what you did, though, remake the blind for free there were. They just even your mistakes and free samples and I got free shipping and they got new promos- always use the promo code Ramsey. Save your money. Kurt is in Virginia without question. I'm a college student with no debt, a small emergency fund on track to graduate one hundred percent debt free in the spring of two thousand and twenty ding ding. I have in determinant credit score and decided to look into freezing my credit since I will not be borrowing money after trying, all three credit bureaus. One runs me around their website. Another refuses to freeze it without sending data the certified Us Mail and Third refuses without circulating me through? call system, is this unusual or should I expect to spend this much time to freeze my credit now you should not usually on all three websites. It's fairly easy on mine, determinant for decades,

we froze mine, I guess because you've actually had never had any interaction. Obviously we had interaction and then it just are often got old and we didn't borrow money, and so all my it's too old for the term credit score, but there was at least a contact and known human being on the other hand, they're probably trying to prevent some kind of identity theft, so it would still lean in and push through, even if you have to send a certified letter or whatever that way you at least you're getting logged on with them. 'cause. I think the problem is, is that you've never had an established relationship even with them. Which is not really a problem, except for the that's what's holding up the freeze, but most all three bureaus have a thing on their website. Where you can step in and freeze it, it used to not be that hard and don But I'm not aware that's my guess. That's my best guess in your situation,

I would also not let that cause you to. Anything except becomes that much more resolute to avoid ever having to deal with Fargo or any of their minions ever again. Are those minions, little yellow gotcha Jeremy is in North Carolina, I Jeremy. Are you hi Dave great to talk to you too man? What's up well, I'm recently married within the last couple of weeks and I've also uh newly married to your podcast? It's it's been. It's been real. Welcome to listen to it. It. I think it's finally push made The point to where around I'm ready to be one of those. That's not the seventy percent living paycheck, good my question. Is One of my life, the other night about you, know getting into the

see you and combining our finances and everything and and I understand her hesitancy because yeah I got my past, with being plus with money and spending spending Body else is money and everything- and I understand that you know she. Concern, but how do you? How can how can we, on our finances, and is there anything that I can do to her anxiety in that, because I'm ready to. I want to do this right, too low, She married you if she, is that dad concerned about you being a complete ne'er, do well who doesn't take care of life in his irresponsible, probably shouldn't walk the aisle yeah. So I'm willing to marry you and put my entire

future at risk by your miss behavior in your responsibility? But God forbid, we shared a checkbook, that's not logical! well? I agree. Okay, shout let your keep talking it through and say honey. The number cause a divorce in North America days. Money fights and money problems and then uh point of discord in almost every marriage is I don't want others to be that way. I love you too much for us to live a life that way, let's go through this class together. So that we can get on the same page and if we don't do it will decide that together, but we need to go through with the information and have these discussions an learn to put ourselves on the same page. We want to combine, finance, was initially licious. Getting this class together and go. Can you that he's willing to go. Then it'll take care of itself you go through, definition of mercy for nine weeks. If you go through financial Peace University for nine weeks with your spouse and combine your finances. Your brain doesn't work well

I will, I will. I will absolutely. I will completely convinced both of you by then yeah we're just saving up the to actually buy the membership thing right now. I'm thinking play within the next month. How much do you make a year? I we make about thirty, and she makes about twenty fifty one thousand dollars a year in one hundred dollars. You can't find well You don't have to save up for one hundred dollars, wow doctor fill up your truck. I was in house, do what now They we're in the middle of like setting up our house right now, because we both started with nothing. Essentially, ok, that's fine, but yeah. You desperately need to go through the glass. If you don't have one hundred dollars, I mean that's a bad thing, so will pay for it as your gift your wedding gift, but both of you have to attend.

And someday when you're, rich and fame, because you learned all this stuff. You have to pay for ten people to go and that's result of me, giving your you're free once that's my rule, open who is eight billion, eight hundred and eighty eight million two hundred and fifty five thousand two hundred and twenty five Connor is in Tennessee. How are you Connor good? How are you thanks for taking my call dad sure man what's up, and so we just I just finished baby step. Three and my company is now offering Ross 41K. Great- and I guess this is the I guess match just like a traditional would match well, the match is not in a Roth, but if they offer a regular 401K with uh the Roth 401K will have the exact same match, send it, and then so I guess, should I next question and I'll be the last thing I should, I guess, do the six percent and take the other

percent and Matt, and do something else, investing with it or should I just said all fifteen percent- you can put it all in there if you want. As long as you have good options, as long as the mutual funds have good options now the portion The company gives you will not the growing tax free. It is The traditional side and the portion you put in we'll be in the Ross side and it will grow one hundred percent tax free The only difference in the match is never inside the Roth. You have to pay taxes 'cause you've never paid taxes on that income. Yet that's what I'm so the money you're putting into their office after it actually already paid taxes on that income, and then it grows Watch free after that so The other thing you can do later and you want to after you get your house paid off as you can go. And roll any of the portion that they gave you that traditional. You can roll it into the Roth that will create taxes on Mount, but no penalties, and I would

Do that sometime in the future, but I don't, create a tax bill. Until you get your house paid off, I want to go any further I want to use up the money. I want to use that money to get out of the debt. First good question open: drones at eight billion eight hundred and eighty eight million two hundred and fifty five thousand two hundred and twenty five MIKE follows me on Twitter Dave was the one slash four of take home pay you for rent or for buying. Home? Does that include utilities? Now? This is just your rent payment or your house payment in the Your house payment is PTI principle, principal interest, taxes and insurance in the case of the rent. It's just your the utilities, H away fees? I don't put in there all that stuff, you know it. That's not in the fourth you're gonna pay those out of your budget anyway. The point is not the be exactly twenty five percent versus twenty four point: five or twenty six seven or whatever. That's not the point. The point is don't become house poor or your whole, stinking paycheck goes to pay for your house. You just can't you just

financially when you do that, the I can keep you down Fourth number than that, that of your take home pay that keeps you going for a reasonable where you got a little wiggle room to be able to succeed financially That puts us out of the Dave. Ramsey show in the books are thanks to James child. Star producer, Kellie Daniel are associate producer and phone screener. I am Dave, Ramsey your host and will be back.

Home. Is money? Isn't the only thing we talk about around here? Get a life changing advice on your career from my good friend and career experts can call all my Kim Coleman 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, the KEN Coleman Show is for you, everyone has a sweet spot. Your sweet spot is at the intersection of your greatest talents and greatest passion. We will help you discover what it is. You were born to do and then we'll help you create a plan to make your dream job a reality. You matter and you have what it takes join. The conversation on the CAN Coleman show here more from the Ramsey network, including the can call in show where ever you listen to podcasts, hey, it's James producer of the Dave Ramsey show this episode is over but check the episode notes for links to products and services you've heard about during this episode.