From the headquarters of Ramsay Solutions broadcasting from the dollar dollar Reynolds Studios. That's that Dave, Ramsay issue that is dumb casual came off chosen, taking the place of the Bmw, has the status of joys and Abraham. So your host your job animal talk about your life in your money, it's off recall a triple eight to five five two to that's triple a to five Two to five star

others hours Paul in New Jersey, Hypo welcomed the diver amply show. What is that David good Beer, How can we help so? I got a question. My wife says I'm too prideful. It's not a good sign, you are you happy maybe not, but when you run through the numbers right, though we have, I try to stick to a budget. She doesn't stick to the budget we make about five thousand per month. And she below her and on board knows whatever one is heard land you mean her end, so she made about three thousand per month. So you don't do a budget together that you both decide on. What's gonna happen to the household income? Young thing by building is what comes in One about the various odd. What's happened there. How does she have an end.

I don't have any. I see the problem is, both paying all the bills and now, when things get behind payment, things end of showing up late and cable get cut off once in a while. I'm the one that's getting treated for it and disappointing and I don't really think that's necessary Obviously the cut off and not have it or if you can't afford it or it should be in the bud, can be paid on time, and so here's the way it should work. The two of you put all the money every single freaking dime that both of you make. In one pile that is called our money for our goals. Then we should

down at the kitchen table and give every one of those dollars on assignment, and then we execute on that plan that we both have agreed on. Pinky, swear, inspection gets a contract, and so out of that you would and say I know this is my income? Mrs urine come so this. The total of that is our income and the first thing we're going to buy food and here's our food budget. Ex thing we're gonna buys lights and water and cable and here's that budget. There is what that's gonna cost this coming month and then here's the house payment, coming month and then here's and then here's and then here's an everything's written down to where every dollar that we A couple have made. Given an assignment and we are, but we both have a home where that money is going to go, when I was going to be spent- and we are both, an agreement that this was

we are going to spend our money, there's no end Herend you're in there's, no supposed to pay all the bills and she's not we both work. We both have a pile of money. May we have APOLLO money as a couple for better or for worse for richer for poor To the all my worldly goods, I pledge the old fashioned marriage, vows say: if you want, I think all of what you're describing would disappear. Wouldn't it sounds like it cuz. You would never plan to not pay the cable bill. Well, your money. We try to stretch every dollar so I mean not now not. Now you would have a written plan or every one of your income is going to go on. Paper but are in the every dollar, app that both you Your wife has agreed to meaning

is no money to spend anywhere, except what we have agreed to. You don't have any sad deals, and so we and exactly what we both agree to and we both have a vote you, ever set out with both of you shooting at the kitchen table, looking at all of your income and intentionally get the cat cut off, whilst the sheep that unwilling, above on me We're moving about you, I heard a thing: ass, air, I'm listening. Ok, would you be living above? Your means? If you did what I told you to do just now. I think there is one problem. I think we probably have over stretched. Monday, as far as we can see. So when you lay down that budget, you thank you run out of money. If you plan the month of December on paper

income to cover your bills. I think it's something they're going to have to get some things are going to have to get paid. So you don't have enough income in the month of December to pay December's bills. I mean we could say that we could it's a mathematical man you're. Not so what are you MIKE? What a compact fluctuate of I'm an inward river and, of course, that that's not how the posted there I wish the world could be bettered boy.

Ah my but my incomes more around, like twenty two hundred per month. What does she bring home? He brings home a steady, two thousand swift, four thousand two hundred on. How much is your ram rent is about two thousand. There is the problem you rhenish fifty percent of your income. There's no possible way. You can make it on that. The income either goes up or you have to move Why get moving that option? I can't think I can help you sure. I appreciate your colony open, found a triple eight eight to five five to two Kevin is whether in California High Kevin welcome that I am sure I did thanks for taking Michael churn. What's up,

So last year I found myself a job for the first time in my life, I'm fifty six years old and The severance is now over, so I'm wondering if I actually have enough to retire, maybe do something I wanted it do, something that are enshrined come. Not really. I wanna work for on profit around here this visit a grand kids like anything, then your fifty six yeah. Ok, what did you used to do those nature executive for thirty years, various but I really don't want to go back into that cuz. I decided I don't like people so

eight, your only then being in a jar exec I'll. Do that to a guy I've seen so many stupid, but things are just don't like people, so fine are so Much do you have in your nesting? got a million in retirement. Can you live off of the income that it creates? then what are you? How you gonna make me? Don't regret and income You live off of the income that your nasty creates If the answer is no, then you have to create an income. Situate, the investments in such a way. They create an income that you can live off of. I think you do have enough. It sounds like The Dave Ramsey Show

pure talk, USA saves you money down, Four minutes, so too said we switch from Verizon appeared talk thanks today, Ramsay I was sceptical, but after leaving the big city in travelling to a rule area, service coverage never lapses were also saving forty dollars a month, guys talk. Usa has the same gray coverage last and No contracts try risk free today call pound to fish and say the key word Dave Ramsay! cabbage. Whether some areas out I welcome with rapture taking my buddy to talk to you, love, you show love what you stand for. I really appreciate it

today's about Roth versus traditional IRA last July, I would say, military and summit the boy camel Dolly's law always look pretty much law is black, yet tat bag itself, I've always been a Roth IRA to distributor. First year where my taxable income is going to be significantly higher than but me up to a higher tax bracket. I'm wondering if it makes sense, can a changing and starch contributing to it additional IRA, So I can try to get myself bumps back down to that that lower tax bracket Okay, let's just say that from oh until sixty five, we put it?

six thousand dollars a year ago, lava violent alors a month. Right then use this as an example that Eurostat are just an IRA could be Roth or traditional. You put same amounting to one right, Let's say that that was done at twelve percent and that's for thirty years. That would mean that that account is gonna have around five million to our thousand dollars in it. Ok but one I re aside, one six thousand dollars five hundred dollars a month for thirty years and it's in a goods a series of good growth stock, mutual funds. If I'm half wrong model k, but let us use this as an as our example. Ok, now we ve got

thirty years at six thousand dollars, which is a hundred ninety thousand box that you have put in the six thousand dollars a year comes thirties under ninety thousand were saying that there's a round five million two hundred thousand in there around five million of the account is gross and around two hundred Of the account is money you put in for right, sure you're, ok in either case weathers traditional or wrath. Now When you get right to take the five million two hundred thousand dollars out, you would have in a rough. It would be one hundred percent tax, free

because you ve already paid the taxes on the one hundred eighty you put in no tax deduction on that and the rest of it would be tax free growth so that, if you, if it is a traditional, you would have gotten a tax advantage. Attacks break two hundred thousand dollars during the time the one hundred and eighty thousand dollars cuz you took the deduction each year, which is what you're asking about on a traditional however, the entire account is not taxable When you take it out, you just don't pay them to day to day. You would get the right off on the one under ninety thousand portion that my consent, ok, so taxes on. Million dollars would be somewhere in the range of a million and a half. So with the Roth, you don't have any tax. With the traditional you gotta make a half dollars in taxes. That's what you tried.

For a ride off onto other down the bad right to veto the rocker. You do the Roth! You see why Yeah, I do you can take a tax deduction now onto other thousand pay, a man and a half more in taxes later you're, not a good plan. Yeah yeah saw me: is there even if we take you know the savings from the traditional in that let's say we invest that, Would grow to another? Your drugs could invest that any tax deferred again mandatory, that would happen, it would balance out exactly. You know exactly break even you're just break even really doesn't matter how much you make you you're, always going to be a Roth IRA, That means that the applicable

because the growth is the bigger Porsche. It's ninety three percent of the account Ninety six percent of the account is growth and that portion being Ex free is so much more officials in the tax deduction on the four percent The one hundred eighty thousand I'd rather have a rather have five million tax free. Then I would attack Dakshin that I later have to pay taxes on Without them, I've always been rabbi contributors are now. You know why in change, even though not without back, it was with everything's gonna, washing and but do you know you just run the numbers out. If you just run out- and you know couple million dollars principal is still the same. Pretty right. It's not gonna change. You're, not gonna reach a point where the mathematics make this slam Dunk,

the only time arrived ever mean attrition, I will make sense. Overwrought mathematically is, if you like,. Sixty two years old. And you're gonna leave along for four years or something then you're growth portion of the account is now. End up more than the contrary. Important much because you be in their long enough for the growth tat her in some. Magically. Then the tax deduction might actually be more valuable than that growth portion. Since it, small being a being there, but it's not about the tax bracket. Off IRA every year. I do my for a one k as Roth and I'm in this high attacked bracket as they make and they make up a special one for me. So I may just ridiculous that you want all my money, so it's crazy and it is my money by the way, not yours, so

you people that want to raise taxes on other people. S always your way to fix something we go. Thankfully comment open found a triple eight, eight to five five, two to five Kara is whether, since, after all I care- and how are you. Idea how you better than I deserve. What's up in your world? Need you a person? Thank you so much for your financial minister. You have helped me so much over the years, so I'm hoping that you can help me figure out some numbers today. Well. I am in the process of buying my first home and I, whether it's better for me to take out a mortgage

the money or liquidate some of my stocks and mutual funds injured, pay this thing off with cash and let that be overweight shall work price range home. I was that what price range home at two hundred and sixty thousand and how much in the stocks and other things that you could liquidate total three hundred and fifty, in six hundred and fifty eight powder, a forty seven. Do you have your other of other retirement stuff going already I do have my retirement fund that each year I've got about three hundred and fifteen then the in that and then I do Odin and properties, mother, lots and neighbourhoods better work about three hundred and three sixty five, very good for you.

What do you make any new policies be to ninety thousand year? What all this money come from gets tab working and investing and undisturbed When you're wrong in our European are so the what we know from having studied TIM, one thousand millionaires in the largest millionaire study ever done in North America that prompted Chris Hogan's number one best selling book everyday millionaires. All the data is in. It what we know from that study is, is that the two primary financial things, the millionaire who is they steadily invest in there for a one case and they have a paid for home and so the dead free, a hundred percent debt is a part of the millionaire equations part of the wealth building equation. I've enjoyed that too and

If I were in your shoes, I sell off a few lots and pay cash or at some of these stocks and package, or do a little above, but there's no possible way. You should have a mortgage. You have done subtle. Why would you ever going to mortgage you ve done Oh good now, if you're paid for Could you borrow on in order to buy that other stuff sell something and pay cash? This is the Dave Ramsey Show. in the lobby of Ramsay solutions on the debt free stage,

John and Lindsey, or whether guys, how are you better than we deserve day lover? Welcome. What do you guys live where from Grain Rapids Michigan, fine, so good to have you I'll come to Nashville you how much data be paid off to honour and thirty, three thousand a right. How long did it take I'd just over four years? I believe Fatima, very good. Our and your range of encountering, therefore your ninety two hundred and twenty seven. What do you do for a living? I'm a register dietician, I Workin food service, I'm an architect very good or Canada. Was the two hundred and thirty three Sally may gather eviction noticed Sally may end, while Spargo you guys with big I mean you win, How old are you thirty one and even go manner with Europe

Mr President, along little account of our labour article six seven seven years and lay there and you come out of go through our authority thousand, you don't have that, international had to be a little bit over welcoming a lotta, her welding. We needed a plan for out of school couple years and the stuff kind of bearing down on you starting to feel the weight of it and forward years ago. Something happened. What happened let's combined the millinery, we both got out. Women are much that any job you have. I heard about sixty the rest, his knee ok, Mr Mr Architect, I gotcha our. I hate that

So you both move this coming out of the marriage, and you talked about it at us with rigour we gotta get out of the term Dermot your story, what happened so before we got married, we decided that we might see. We read your book, we took your class after we got married and we decided we have to do something. We can't live like this under this that this is not what we want in life, so ones we got married. We really attacked it. We took all the money that we got from getting married all of the gifts we put that towards sooner loans every little bit than we devised our plan.

Just went hard. We were really hard when you guys been Bosh than for a long time. Yet we go out. Eat now day to see arose from the inside their very good cool. So what made you know to do their shattered, drew how'd you get connected with us or what happened the ghosts so much that we had the find somebody else than you. What they're doing as we did it. We heard you on the radio when we would be driving back and forth. We have lived in Detroit fellow that and would drive back and forth to grin road to grant rapids, and we heard on the radio in that was really a big push for us and also we knew looking forward about two years ago, just over two years, guy had a kidney transplant. Oh so looking

That medically looking at what that was gonna cost in our life. That was a big fear of how are we gonna pay for this? What we're gonna do so yeah we kept paying off, even though we we save money for when I was going to be off from work and kept go in and he regarded, I just never stop. I mean we're seven fur when, when we're working on saving for her to be off work, you know we were just save money in it was fires. Every time we save money, we felt we spent more. We always out. We had more money saved, so we just whenever we got bed, we just put it towards loans. While they were paid as the day? We mean money towards love, to see that number go down and then knock out snowball, just one loan at a time. So you did all this from just listening on radio we

Fear. We tell you why I propose that we have every dollar we still use. It never continue to use the chorus. Listen to the radio read the book continue to read the books books yeah! Thank you how to read cover to cover. Probably harry, I search for fervour luxury anyway, you're, not not not for school. So what are you tell? People are key to getting out of debt. Is this was an impressive thing you ve done feels good

I think the key fur for me and for us was the budget, because when there is a budget nor as a goal, there was nothing. I was gonna. Stop me personally from reaching that goal, but our goal and our budget was done together and we're both on the same page yeah. I think what we had set goals and be like when you that this will also be paid off. I've been here, we write or we are. We could probably do it, then I think you they we into a sinner galaxies, do it and then we must work more overall gonna use turned into a game that is realistic in every area. Conversation was how we can do this. How are you going to a faster? I mean we joked. We're like as worrying goes we're like what are we gonna talk about when we are dead, freak is consumed, s image is gonna, yes, they focused on it and talk about all time is.

You just said a budget and forget about it. You're not gonna. Accomplish you gotta stay focusing you know. I have people ask me: how do you do this simple way? Just set a budget stick to advise and lived nothing. We did. We lived on nothing. We really did eat rice and beans, Dave peril. Did as an ideal number. Eight at wage numbers reveal that I mean you paid off in fifty thousand bucks a year for hers and making ninety. There is no room in that, not after taxes, they ask you been doing nothing we're we're. Always we deplore the make fun of you. A little bell over by just was like a means are doing it right. I wanna be normal nets are. I think we owe that to our parents, absolutely we we don't have trash. We bring it to their house.

Cable! We don't have internet. No, we didn't have internet for the first couple years, we're married because we would just get everything done. We could add someone else's house or whatever it was that we needed to do on line and we didn't have any streaming services. We add PBS and PBS is still great. All this time. Well done you guys, like you, yeah, very proud of your bags. We got some exciting news to John became a licence architect before we paid off a lot of stuff good for you. Congratulations! Thank you.

Yeah yeah I was, as you know, I was used to working sixty yards week, so things are slow down. I workmanlike, I guess now sabbatarian try and get that freer, try and get licence be before we do. Every scream slogans Emma Licence, architect, lover! Third, for you, my set a golden. You know she was their help. Me I mean there s. The best thing we learned was set a goal and work together. I can have got licence in six months. You to take people five year Stephen because that some more good job gas very well done and then we'll be welcoming a baby. And who live, dungeon better licences, babies, dead, free thirty years, all it's all laid out. Well done guys, I'm looking at where people you're probably makes very

Well done good for you. John Lindsey Grand Rapids Michigan, two hundred and thirty three thousand dollars paid off in four years, making ninety two one, twenty seven count it down. Let's era, debt It's really to what, Well, then, you do very well, that's exact. How you do it right there, man they have been fostering a kidney transplant. Five years. Who are for years and two hundred and thirty three thousand dollars paid off making. Ninety two one. Twenty seven, you know that's called perseverance, that's what that's called us Accidental did you know no one wins by accident.

Is an intentional act. You aimed at something, and you went for it. It does. The car? It's not a random lightning strike you're, so lucky not you did it wasn't luck. This is the day

lands whether in Oregon Island. Welcome that ever actually share hi Dave. How are you great? I would love your advice today on how to negotiate for an income and a new job opportunity which I am interviewing for officially on Thursday, including eight until finding bonus, ok, what are they gonna they? I hurried well I've already had a conversation with them ahead of time that I know that at least it would be one hundred and fifty thousand dollars, usually they salary, and they did say that they know the situation.

I'm in and that they are have been quote unquote known to give signing bonuses based on some compensation. That I know is coming to me in March that have already earned for this year and we were about a February first start date Conversations with them now moved on launching much compensations due to you in March. I have it at a sixty thousand dollars or sixty five thousand dollars gross check that I would be leaving the table. If I left, willing to match that they I don't know my you know, I'm starting to think that the hundred fifty thousand might actually be too low. When I leave here. I've Seven year old, single mom got divorced

this year is going to be at a high of two hundred and sixty thousand. However, because sales. Seventy five percent. That income was paid out in the fourth quarter of this year and One hundred and sixty five thousand of my income is taxed. Can I hire heavily and bonus notion on the third. No talent, knowledge withheld at a higher rate was not taxed at home. Ok withholding their withholding on bonuses. The Irish requires that lawyer use a different chart for withholding, but it doesn't change the taxes on the money. Taxes are exactly the same, so you have an income of two hundred and sixty thousand looking at a job that makes a hundred and fifty. Why? Well? I was thinking all along that I was more, but I've been waiting for thirteen

Thinking how nice it would be to not have to live this a smaller base with such as large bonus that comes at the very very end of the year. Applause. Roma now what's wrong when making doing well made nothing is it a high year butler Anyone who hasn't you're gonna make a year for the next five years, what'll my origins on the last six years have been is to honour and eight thousand lasher. I made a hundred forty thousand a minute swung all the way up to two sixty this year, but my, right. I guess I feel so me sixty thousand dollars at the end of the year. I shall keep half of it and This tribute the other thirty through the rest of the year, just to make you feel good that's what you're talkin about doing. Okay, Our european society, since bonus aside and

and smooth out, and you not to give us a higher sense of stability. Could you, some now stay winkies. What idea don't use what we have done for eco all along? We worked out fine, but you ve got all this money. Okay, listen! Here's the thing! How long have you been a single mom thirteen years and when you were First, my girlfriend out twenty in seventeen o, you're, a single mom with little girls the first year after the divorce. I made seventy three thousand, then you were scared to death. Yes and you ve never gotten over being scared to death. Now I feel, like I've been living Firefly now along, let's driven

huge success, but this is not. Is it not a math problem? This is a spiritual problem. Apply yes, and part of it comes from this. We all are straight: commission Everyone that works on my team is straight Commission cuz. If come to work for about six weeks. They quick getting paid if they dont perform like we're getting paid. Everyone has to perform, it has to come to work. Paid. But when your own come heavy commission like you or self employed like me, we just have a heart emotional realization of that, but you get paid based on you're only as secure as your ability to leave the cave, kill something in Dragon Home security cannot be provide

Someone has to make payroll on Friday because they might not be secure. Are you off and see it coming cause you're, not managing the books. So there's no way you take a job making a hundred fifty when you're making to sixty. Unless you hate the job, IRAN or you are in a toxic, iron, man or something's immoral, are wrong or something like that, then you would need to get out of there, but I didn't hear any that all I heard was: you still have the seventy five thousand dollar scared Young ngos mom living inside of you and she's barking. In your ear he asked I can't get her out there I was thinking if I were to move over there and ask for a salary of two hundred thousand with upside. You know with outside, on top I'll be: ok, wouldn't you I'd never going to make more than you might now. Yeah cos

Here's what you need to remember, Lynn. You have proven that you are worth two hundred sixty thousand a year. We have documented mathematical roof that you are worth two hundred sixty thousand a year. That goal, it is sometimes. I think I have that you use, make you think you're a passport and somebody's gonna find out the real noise. Yes lucky I got just you know, but here's the thing you ve done this for you, here is the system of its not ruin time playing. There's a reason that I need to leave

want to go for this job, but I guess if I'm gonna go for it and I really need to go for it or the right reasonably exactly what I'll more the right reasons. Yes not for an illusion of security. Security is an illusion. You have security because you have ability so don't take this for security. Don't take a pink and don't take this, because that young single mom, who was terrified and insecure and didn't have any confidence, is barking. Does the woman I'm talking to has proven that she is worth two hundred and sixty thousand dollars. That's what you re getting credible.

I know, I just can't. I feel like just one time it wasn't a fluke you? Have I not pull Superbowl rings on your end, your ha famer. This is not a fluke and it just never caught up to universal down, talked about and thought about. It and so all the only all the insecurity and all that we all have those tapes and out of this by the way I still somehow gamma twenty euro gathering bankruptcy. You know. Sometimes I wake up, no one. I think I'm that gas deal, but I'm not I'm now. Fifty nine I got Sox are smarter than that. Guy was so I'm so proud of you get at least two hundred and sixty and the job, because it's better people and a better aside, not because of insight

ready or not because of supposed because you have ability, does the Dave Ramsey show? associate producer for the Dave Ramsey Show. If you would like to be your debt free, scream, live on the show, make sure you visit daveramsey dot com, in register. We would love for you to come to Nashville and tell Dave your story.

Practical ways to save money in your everyday life. You need to check out the Rachel crucial upon cached from Bunny expert. My daughter, Rachel grew guises, Rachel crews and I'm so excited to tell you about. I pod passed a lot of you following paychecks pay check their end ass. You don't even know where to begin that they have this need this once again is control of their money, and if that's you, you have come to the right spot, so nature persevering, get a time of inspiration and practical advice. If not subscribe to the Rachel crucial podcast makes region today nor more from the Ramsay network, including the ritual, crucial wherever you listen, the pod gush hey, it's just. Producer of the Dave Ramsey Show