I live on the headwaters of Whimsie solutions, broadcasting from our car rental studios. It's that day Rams Asia were debtors. Dom casual gaming and paid off on mortgage has taken the place of the Bmw how's the status symbol of choice. I am Day Ramsay your host. Thank you for joining us, open phones triple eight eight to five five. Two to five, that's triple eight, eight to five five, two to five. We appreciate you joining us

line three is go start up this hour in Kentucky. Is Tom Hate Tom how're? You Dave banks without my call sure. What's up, I recently came in some money and I paid off by credit card, and I have enough left to pay off my car, but I will only have like a thousand dollars left to put in my savings. I was just wondering what you thought was LUCA won't. We teach your process, or becoming wealthy called the baby steps, and the first premise of that is that your most powerful wealth building tool is your income, and so we teach people- and it has been very successful, doing this to get out of that and without any debt payments they have the money, then to start investing and being generous and those other things that cause people to become wealthy. So what do you make a year? May my wife make

a hundred and ten hundred twenty km are not neighbourhood, and so until you came into this money, your basically broke make an hundred grandpa very much. So it's time to change some habits. Would you agree? Yes, so if you're gonna do all about than I can show you the whole process- and you can do this simply doing part of what I teach could leave you vulnerable, and I don't want you to do that. In other words, yes, I would take the money and pay off the car and have a thousand dollars left because, baby step. One is pay off all that except your home. That's why we should have to and use any money that you have above a thousand dollars to do that so maybe step once a thousand dollar saved, babies have to become debt free, but your home with that leave you one hundred percent debt for accept your home. If you did that, if you paid off the car.

Yeah, ok and then what we would have you do is beyond our written detailed budget. You and your spouse, an agreement of exactly where the hundred and some thousand dollars a year is gonna. Go on paper on purpose before the month begins every month, as if I hired you to manage this company and your job was to make this money behave and you'd have to report on how it went and did it go to what you said it was gonna go to for the good of you right and so you know unite. You then, would build up an emergency fund out of that budget of three to six months of expenses, and then we would start investing for retirement and you'd have the money to do so. Would no payments, but our house payment and built Ben be living on a bland, making a hundred grand, and so that's what processes. We would teach you if you simply pay off the car and I have a thousand dollars you right back where you were before you got the money except Unama, car payment,

keep not handling money well and making a hundred thousand dollars and having nothing. You're gonna end up back in debt again agreed right, and so what we have to do is changed the process that gotcha to where you are and will use this extra. Found money as some rocket fuel to get you off the ground and the new direction, and so all down I'll send you a copy of the book. The total money make over. It will you exactly how to do all of this in detail, and it goes through the seven baby steps. I'll give it to you as a Christmas present, this I'll help. You get movement, and you call me back if any more questions as you go along I'm here to help, tailors whether some Pennsylvania High Tyler, how are you today even though they are better than deserve, how can I help? Thank you. I have been attacking the baby's. That's my mom give me a few in September. Something really excited about tackling babies. That number two,

I am currently in graduate school with two more years left and I was concerned with taking out loans for business coming year is aiming for the last year, but now I'm thinking I should they propose which gives me down where they could, I was really excited about attacking. Might that that you're going to get them back in your personal prospective call, someone starting in your masters, counselling an amateur p and trauma informed therapy, perfect I'll, show you finish your doctors and get licensed in the state of Pennsylvania become a therapist, yes, excellent, very hungry, I'm trying to either the often good you will. You obviously got a wonderful heart for people otherwise, what an inner under the staff, because it's a mesh, if you don't it's honoured man trying to get out of it, can help people to allay so much that do you have now. I currently have about seven thousand inquiries about four thousand

on my car and by the time and the phenomenon I heard about the semester. Your borrowing lead, member that I have already about third, this spring. So by the time it bring arm. I will have about forty thousand student loans and that those loans are already? and that those loans are already taken out. You already have received the distributions may I'll be there already apply calamity. It was easy to see how that is underway. Ok, well, the false fallen. Yet I got in the Far EAST on how much are you to receive in the spawning about seven thousand in the spring? In two thousand. In the summer catch it, and when will you complete your masters and twenty twenty, two? Ok, and so it costs about seven thousand dollars or semester got about ten thousand for the next two years, I'm not taking from requested other classical down a bit, and I take it

The way you show that European off debts endanger working, I'm working full time right now, thinking about forty two year, growth good for you were the first to go for getting out of debt is take no more men. Can you cash flow the spring? If you don't take that seven. This year, not likely, but that's what I was hoping to get on plan as soon as next year on what is now the first two December a budget make. It is now a better make it for so saying what is being done to January,

and what about forty? Eight hundred? How much do you? I currently have my a thousand dollars the baby's that one and that's about it and you ve got your money coming in from work. This moth eaten, yes, call the school all fish and see if they have any kind of a payment plant them through the spring. I'd like to break the back on the borrowing right If we can open and if they let you pay part of it in January, in part of it in February, or something like that, and you can figure out a way to you now scratch the Nicholls out the corner, the couch and pull that off. I'd like to see you do that, because I think it's gonna give you some emotional boost to do that. So now I don't- I don't agree here. First goal is I'm not worried about you paint off any dead until you graduate I dont want, can take out another down.

Virginia anyway, you can avoid the spring avoid the spring, but for sure, from now on, all number one is borrow no more Yawned borrow no more once you ve got the money to finish school. If you ve got some extra money above that, and you want to european down dance. That's fine, but borrow no more. You can't get out of that. Why you can borrow money that situation detail. This is that I ran Felicia. it's the season of giving switcher cellular service to pure talk, USA, save money and get a free copy of my book. The total money make over and a copy of Chris Organs book everyday millionaires, plus twenty five lucky winners will receive signed copies of both books. Folks, all up

dark USA plans include unlimited talk, text and data with no, contracts, try risk free today, just call pound to fifty and say the key words Dave Ramsay, that's pound to five zero key words Dave Ramsay very bad weather. North Carolina high Mary Beth have merry Christmas to you marry Chris thank very much shirk from my question here's. My mother, she told the house in another country, my husband whole told her that she needed to like, another house within about a year, because the capital gains tax is but should

do that functions that gave it to us Don't worry about our house were invested in house found now. She's getting muttered from IRA say when she's gonna be fine cry like clusters who supports the report it up or her It's not income to you. She has a gift tax on it and I dont know if she shows a house in another country. Does she live in the United States in the: U S now yeah, but I'm not sure Rogaine replies to measure how cap gains laws apply to a foreign own property, exactly you'd arbitrary attacks tax on there. I do know that you can give one hundred thousand dollars to another person without intake without getting gift tax, or if you didn't make a couple of moves, I mean there's couple than she could have done it's after the fact now. Hello. Was this four year. All Lord, I know I know

She's, probably gonna get hammered with taxes. She needs to go, see a professional adviser. Now, if someone wants to give another person a hundred thousand dollars, you can file under the unified gift tax, unified state tax form that allows you to use up part of your estate tax exemption, as gift and she could have done them had zero taxes on and if she d simply done one piece of paper with our tax filing that year, now you she can go back for years, and fallen amended return and put that in there or not helpful she ran, and that worries me that simple to get rid of it. If she doesn't, it may cost or twenty or thirty thousand dollars for a year. It falls on our shoulders, not on your shoulders. At all of half an hour, Lauren contacting you they're contacting per year

and she may or may not have capital gains due on the sale of that property, and she will have give tax due giving away a hundred thousand dollars to when it's not given to a sort of odd charity which are obviously not now without using the unified state tax credit which you can do it's not a big deal unless you have a huge state, you're doing detailed planning, but but I'm not really, not so, have we jump on the website of day rooms? You dot com again touch him one of our tax professionals. Hopefully one of them can go back and found mended return and get this off over and they should also be able to advisers while she is actual capital gains, do on the sale of that property or not. I don't know about that. Just because you profit a hundred thousand or you get. A hundred thousand of your hands doesn't mean you have a taxable gain necessarily should have paid down them. You know the mortgage and sold the property for what she actually bought it for, in which case you would have had no gay

but could you put a hundred thousand in her hand inside just cause? You got money in her hand. The closing does not necessarily mean remain a profit on the property gain is profit, then that's what the question is there so ever touch racism or the taxi yell peace, they Ramsay dot com and in her area, and they should be able to walk or through at there's two different issues: the capital gains on the sale, the property and whether or not, and then the gift tax can em an amended return, be file back for years to do away with that give tax problem ouch Joyce, isn't Florida welcomed that I Ramsay show Joyce here and there. Finally, I been found for the funding of Peace- universally awesome. Oh yes, I'm excited, and liquid notice must become To verify the foaming, I told him I find that a lawyer I gotta have their after walking on hearing the fuck. Really you are. You bet all my life

We back wearing black. We felt were excited malware. Finally, on track getting on track What do you got under way for we have credit card there, anything charter for elections and trying to figure out I'll get everything land, but rather that criminal. What to do about the different I saw? How much of that is two thousand, and how much did you have this active in current?

five thousand so you're not paying anything on the charge of debt today correct correct right. So what we teach folks to do in financial Bijou, verses in baby step to to work the debt snowball and that's where you list your debts, smallest, two largest, you pay minimum payments on everything, but the little one you attack the little one. In your case, I would do to different debt snowballs. First, I would snowball your active debts, because every time you pay off one of those you get rid of a payment that you're making and creates more in your budget. Do you see what I mean now and then? What's that forty five thousand is clear, then we'll go address the twenty thousand, how many different debts in the twenty thousand? I told better, for you got out of twenty five a good encoded found. Let's ride twenty, the discharge love how many different debts in it. I've got five years

large! Ok! I will list those small two largest. I would not pay any payments on any of them here. What I would do is save up some money in contact the smallest one and do a deal with them. So I get the neo, but you got an riding. Do not of the many money unless it's in writing and then some a wire or a prepaid debit card or something do allow them to have access to your checking account I'll carry in Kosovo The first one is two thousand dollars originally, when you originally defaulted on it, you out two thousand dollars now you contact them spent four years ago now? six thousand dollars. Would Lavie tried and you say: well, I don't two thousand hours out of six thousand hours, I've got twelve under dollar saved if you'll I got a settlement in full for this Dat and that in writing.

I will. Why are you the money today and then they're gonna argue with you haggled Can fourth, until you come up with a number and when you come up with a number you get that were in writing and harm done early settle this stuff for fifty cents on the dollar. One originally was ok and so you got you settled one at a time and when that one's done in writing and you paid it, then you save up some money and you do number two and then you set up some money. Number three do not get on a payment plan with old bad. That's just settle them. For a lump sums that you ve saved up and gotten in writing. That makes sense different plan than the first, when the first one is Europe's Galicia, small largest pay minimum payments, keep Panem the naughty that little woman that little ones gone. You take that payment and throw it on the next one area, then everything else you could squeeze out your budget and to allow two were gone and though it on the third one, then you thought on the fourth one everytime you pay

are those you got more wriggle room and your budget. So by the time you ve got. To do that, and you got rid of forty five thousand out with that you'll be able to save up the money to lump sum. One of these cards a month, probably on the oh? Yes, where shall we work at his two separate debt? Snowballs as you get to your baby steps, and any time again say it out loud, eight homer settling old debts. You always in writing? As you can tell a credit card collectors lying if their mouth is moving its a filthy business, horrible business and they they lie, cheat steal and that's why you don't get MAX at your checking account because they will lie to you. I work for discover. That means they will lie to you. You will discover that is ridiculous.

These companies are horrible. In their credit, they violate federal law on a daily basis. It's crazy what they get away. So you have really got to be careful and really gotta, be strong and do not give them any money. Unless you get it in writing and then it gets Gambia fight. You ve got a struggle through. It argue, push back, scrap and claw back, helping you there you'll get there, I'm proud of you you get after. You call me if I can help more. This is that Abrahams Asia

the lobby of Ramsay solutions that breach the edge Alyssa. Where this I Alicia how're, you harry you better than deserve where do you live Dallas, Texas, very cool. Welcome to Nashville and all the way up here to do a debt free scream. Yes, love it! How much of you paid off fifty thousand dollars go along the stake. Twelve months, you and your range of income during that time. Sixty two to seventy eight thousand, very good and what do you do for a living and marketing manager? Very cool or kind of debt was the fifty thousand student loans, a car in a credit card,

What happened the made you decide to tear this up? Could you tore it up? Girl, I did TAT, pain. My sailors going to death of, like I don't, have any money left over. Those kind of that was it. You ve got disgusted yeah, I'm working too hard to be this broke exactly and then what you do. I decided to lower by living expenses and I bought in our view on Craigslist for eight hundred dollars and I renovated it and I lived in it, Twelve months, woe would you haven't apartment. You moved out over a house or a two bedroom. Ok I'll show you dropped around what was your room before after utilities and everything about twelve hundred, so you are quite seven twelve August, yet Oak Darby up somewhere. Yes, that cost for thirty five! Ok, since eight hundred bucks a month yes and you got where

asked such crazy. I can get the idea that I love those awesome good for you. So what motivates your? How did you do? I mean you just looked round The budget should know how to do this all unfold, I'm just pretty intense and competitive, says like I'm a misprint or not a marathon person. I just got after it delivered pizza who made art logos, built websites plus my full time job. Well, so far, social city. Yes, what was the most profitable shroud hustle making websites Olga yeah? The macsharry, mocha shaved, obviously got that ability them and when you're marketing background the other makes sense, but very good good for you fallen. So how did you get connected dash? I actually took a financial peace when I was twenty one.

I was in college. I took it through church. It was a really clicking. I didn't have any money. I don't think I applied to me and then I just graduated: did you every morning up up up up up up up and just accepted how things work awake? Oh, I have a big girl job. I serve a car. You take out alone, and then I can. I woke up one day and I like this is not how I want to live. So I actually pulled out my old Bob which were seated youth Ya- and I just went through my book again and listened your cities and then the hardest part was going over how much I owed. I can avoided that that was, and I would like a week process for me looking at that in the short term paper. Do yes out weird, but the weird thing is what you do it? It's like bad, but I can do it. It is not as bad as it felt like. I was gonna, be yes right now, so get not getting it all. Right now and written down.

Is its emotionally painful, but when you're done, there's cleanliness to it, yes, having clear goals and just milestones took it. When you were twenty one, you got out of college regarding the dead, You wake up broke. You get the OECD's off the shelf, sir. How old are you now? I'm thirty? Ok, so a nine year journey back to the FBI, Eu Box here, ok, I got what we want to be there when every Unita, so we should help the first time, but I'm glad we were there the second time, yet, that's perfect, very cool. So how did you been financial picture versed in college. You show your parents gave it to. You now want to church and they just offered it, and I think I don't know why and am sure sounds like you should take this Roca and you did but it didn't take school. I like that. You come back at the cds out and game,

yeah. I want you decide, though it's it's all the way I mean you move into an army, how many people thought you were crazy. Everyone, everyone, my co workers having cheerleaders? Yes, my family, my friends, really who is the biggest your later? I think coworkers because I see them daily in an interesting story, so they weren't like yours, crazies much. They return yon. Yes, that's good and you gotta good group. You work with very good good for you. So what are you tell people the key to getting out of debt? Is I mean you went all in? I think, setting boundaries and that's what I'm doing my money. I set boundaries to it and it actually. I noticed when I get a hold of my money and setting boundaries, that kind of trickle in to the other areas, my life like health dating, and it s really weird like what's my responsibility and what shares in reply will be proud.

But the great work, a great guy mocha good for you, so fifty thousand you're living in an army you dared and twelve months making sixty to show on the side hustle. How much did you bring it up beside us will combine. I have not calculated that ok, what would you guess? I make a couple grant a month, yeah pussy, twelve to fifteen, I sat hustles, no cash or twenty three but probably over here give or take ok, don't make sense, a butchered aid at eighty two and not an office. And living in an army that you still got our we know I sold it actually made up. That sort of her three thousand new border varied on you renovated it. I did some did you spell nor innovation? I just cash flow that my parents helped me Abed cover only money, so you were solar for profit over the even over the renovation caused at three thousand bucks. That's awesome, and so did you move under an apartment or what you did yesterday

into apartment, with a bathtub and a full kitchen. It's amazing! I can make. Cook Isle of great between procure appreciate the little things in life, absolutely nothing taken for granted anymore, you're, a credible, your rock star, I'm proud of you very, very well done an excellent job. While I mean you get our done, that that's impressive, very impressive. So what was the hardest part of this whole process for you? I think it is a lot of things. I know I lived in a trailer park and I was growing up whenever we rented houses or eliminate a house that that was adjustment at little bit, but I guess it would probably working full time and then not stopping and do my side hustler spoil the hardest, notoriously whom the emotional and the physical drainage of hard work. Yes for twelve months swimming, you do there for a long time,

and are you breathe yes, and if those great does Filbert she'll, probably well Donwell, don't we copy across organs book for you every day, millionaires you for sure will they want body that move other apartment. Anyone Aidan Dollar, our veto in third gulls or do anything in life. There's nothing to stop! You get oh well down. Very well done, pay a price. Live like no one. I also later you can live and give like no one else Have you have defined it today? Very well done it's a lesser from Dallas Texas, great story. Fifty the Bowers break up and twelve bunch, making sixty two plus adders and moved in Are we download zero dead. British grew why two three, I am very yeah

I think I've gone or I'll say it every day now, but I'm just gonna keep saying it over and over again That's a millennium. And so those of you who think that the millennials or a bad generation Eve you, watching the news channel too much? I got a bunch of I'm workin here and it's that there's a that yeah there's some participation trophy deadbeat entitled living in their mothers by when I know about those riding a blog to be free in life, but then there's people like Alyssa, I mean that's impressive- sacrifice, sacrifice hard work, to win, these are correct. Qualities

well for our Future America, then there's a bunch of illicit walking around. We get to me them every day around here. This is the Abrahams Asia

Did we ever feel frustrated and learn about this stuff, this money stuff when you're in school, Have we known this stuff? How much I could have avoided, but we can't go backwards. What we can do is make sure that the current generation gets information, our Ramsay foundations in personal finance curriculum is now tat in forty eight percent of the hospitals in America. The only reason it's not in the rest of them. Well, not the only reason, but one region then why the money, and so what we're doing

we're getting sponsors local businesses to sponsor kill him in their local high schools. If your interest in doing that in putting foundations and personal financial, your high school in the area, and you get the credit for it gotta day. Ramsay dot com, Slash sponsor, of course, ignored check, Ramsay Education, it diagrams you got com and click on sponsor there, but our I'll help you get lined up on a school in your area and for a fee dollars, you can make sure the next generation is smart, her Managua criticism of those crimson taxes, our you Chris, How do you do it better? I deserve. What's up somewhere, I have been listening to the past few months now, through the told him

we make over together and then just recently completed our financial Peace University call? Currently, on the step to, and my question for you regarding an inheritance we received from my Father in law, passed away a year ago, and he left my wife it inherited. I only wish me just piling to take them required minimum distribution other year right. I got to thinking about it you recently just after the third child, so the child care prices going up will wonder if it would be feasible to withdraw from that pay off their debts. Yes, I would add enough to cover the taxes agree. It does not create a penalty. And I dont tell people to carry out their own retirement, but this is basically a taxable inherit This is what it amounts to most inheritance it's not taxable, but because it was in an irae, it becomes taxable. Do you guys, as you know,

so how much is in the IRA? So why around three hundred and fifty well and I wouldn't have. You got a hundred and fifteen thousand ok cool and what your household income recently, where she just both starting new jobs. We went up from one o five to one sixty Ok, so you gonna take out like one fifty or so to have enough to pay the taxes and they are and have enough to nip yourself dead free. Looking get get advice from attacks version on exactly what you're tax bill will be cause. You don't want to switch sneaking up on you. Then I knew there would be additional taxes, because I think it's got us into a higher tax branded. As I myself have looked into that's exactly how much that's gonna be yet

can't get in a higher tax Braga than urine Boca your matched your fine on that, so whatever it is, but you just need to calculate the taxes accurately and then that will help you decide thanks for the gall open, follows a triple eight, eight to five five, two to five. You gonna jump and we'll talk about your life and your money, J J. Is Withers and tax aside J J how're you doing, do they are you better than deserve? What's up? Oh, my wife and I are almost there. We bring forty nine to fifty one hundred dollars a month, shit out of the car, that's about thirty. Five thousand are that we are on on it. He has about is six point, five interest rate on it. I have a fleet that I have twenty months left on it in ten grand

the pay out and we have no house payment and we ve been under every dollar budget, that for about three months now we figure out the king. We ve done a lot of, but How do we don't know how to tackle it? The delta, where a good rule of thumb is to know that things with motors and we'll go down and value rapidly right, it's very difficult to bear wealth when you have a large portion of your net worth tied up and things are going down in value, the rule of thumb that I use even I love cars, is that things with motors and wheels that you on cars, boats, motorcycles for Wheelers lawnmowers, whatever added to it

Neither should not equal more than half your annual income. Your cars violate that so one of them needs to go or both of them. They do your household income is probably a year you'd take on six sixty thousand so yeah something about seventy five. Her car is thirty five right now, so even buying cars. You can afford it's. What choking you to death and lead because realize now show what it. What does she owes? Thirty five watch her car worth upside down eleven grand on it generates betrayed. And fourthly, you dont like them

but a year later, so we at car and dragged another eleven thousand hours with the negative equity on it here. I'll show you gotta just been jumping around all over the place on these car deals in these cardio suggested new alive. So yet at you, you found your weak spot cars and if you can stop that up it does this by one go down. Does it, legal shall on Yahoo her our car, I mean, if you credits, gonna about borrow the eleven thousand get it hoped he put, let our drive your least carcasses, probably than I Shikar cassettes, federal law. Mom gets the good God that's federal law, and so you don't make sure she it's a good car and you drive the humpty and let's go are sold and could take on eleven thousand alone, because at the end, without our alone, there were thirty five thousand, not alone and quit buying cars can afford.

Your leashes up. You just turn it in and get another hoopdriver, and then you save up and pay cash for your move up in cars as you go along, that option Cappy is in Kansas. High Cathy welcomes the diver amnesia and keep them taking my car. Sure merry Christmas shock and I hope that law I am thirty, nine years old, I have about to about twenty eight hundred, time and time again, the Italians, working on babies. Tat, never one good! Ok, let's get started. How much data vigour We know that I have about two thousand in medical bills. I have is that twenty eight hundred

I won't let you by five hundred and let it sure what your household income about twenty thousand a year hooker, and what do you do for a living? I work at sea and I am ass. She workin forty hours. I was thirty salaries became by work. Twelve loud, yes, I'll show you York three hours a week and which means that four days off our Do you know that time, men, I guess, where sapphires medical issues, both why there I am thinking, I can do some exercise that work from thinking about jumpy the only thing we can do to get your income, because I need you to clear the data as soon as possible and when no no debt payments then save an emergency, and then we'll start investing for you. A better nest egg to retire on, but

The shortest path, regardless of your age, to having an egg, is to get rid of it payments and have an emergency fund first. How do you think it I was thinking about my retire you'll be no that's possible unaware, though, why size signing on they were firing on line wearing my happen again. One I ever for firemen but lacking here now? I think you are We're gonna have to work on a longer and sixty five with a math you're given make now something happens, because, your income to God dramatically. You might be able to do it's one of the men, but you need to build in a more she fond get free. Then start building your nesting as fast as you can from there, and you keep listening and will keep up and running this the day were amnesia

Hey guys like Thomson senior second producer for the day revision of this our over, but you can find more great content. What are you too, to catch the most watch, daybreak Debray screams and the fairy everyday million years ago to the day? Perhaps he showed me too. If you're looking for fun, and practical ways to save money in your everyday life. You need to check out the Rachel crews, show a podcast from money, expert, Maidan, Rachel crews, guises rights of creators, and I'm so excited to tell you about. My party has a lot of you, darling, paychecks paycheck their end ass. You don't even know where to begin that they have this need this want to get in control of their money, and is that you have come to the right starts. So each episode, jeering at 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 listen, the pod gush hey! It's just

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