From the Ramsey Network, it's the Ramsey Show.I'm Jade Warshaw.Next to me is one of my favorite guys out there, Ken Coleman.
Hosting the show together.Hey, we're talking about your life, your money.We'll throw in careers.Ken is the resident career guide.I will help you with the money.You might have some relationship issues.You can toss those in as well.
The number is 888-825-5225.Call us up.We'll get you on the line.Let's dig right in.We've got Tyler.He's in Charlotte, North Carolina.What's going on, Tyler?
We're doing good.How can we help today?
So I have a, about two and a half million in debt between mortgages, short term, um, different car loans, stuff like that.Um, I'm aggressively paying off kind of all the, all the debt except for the mortgages currently.
And I'm just trying to see in that I should have that done in about a year to a year and a half based on the way I have it set up.And I'm just trying to see if I should,
make bigger changes and try to attack everything a little bit more aggressively and get it paid off sooner.Yeah.Let's roll it back and continue the way I'm going.
Let's roll back and see where this lies.Because when you first told me I have two and a half million dollars of debt, my my my pulse quickens.But then when you mentioned real estate, I thought, OK, that makes this a little different.
So tell me about the real estate.Can you just go by property by property?And I'll ask you about each one.So the first property you have, is it a rental?I'm guessing.
Yeah.So, um, first one was a duplex.It's worth about 260,000.I have about 158,000 on it.Yeah.About 1300 incomes, about 2150.Okay.So let's go to the next one.
Um, single family, 270,000 asset value debt, about 159 payment, a thousand income, 750, 1750.Okay.And the next one. Worth about $310,000.Debt, $200,000.Payments, $1,481,000.Income, $2,200,000.Okay.
Yeah.Another single family.That one we're actually trying to sell.We have on Airbnb currently.It's worth about $540,000.Debt, $460,000.Payment, $3,600,000.And income, about the same.
I think after everything's said and done, we're probably losing about $500,000 a month on that one.
Okay, anything after that, number five?
Yeah, we have a duplex value $360,000, debt $205,000, payment about $1,460,000, income $2,800,000.Okay, anything else you want to keep going on? Yeah, there's quite a few more.Oh, gosh.
OK, well, instead of going through these, here's what I would do if I were in your situation.I don't like that you're carrying $2.5 million of debt.And I love that you love real estate, and I love that you want to get into real estate.
Here, we would teach a way to do that that's in cash, and it would be you paying off your debt first and saving up to buy cash.You've gone far beyond that.
And it is true that some of these may be good investments for you, but not at the tune of you being in two and a half million dollars of debt.
So what I would do if I were in your shoes is I'd list them all out and I'd say, which ones can I sell off in order to clear this debt out?And are there a few that in the end that I'll be able to keep that do, you know, create some income for me?
Because how many do you have total?
It's 18 units total, but we have mortgages.
nine mortgages count in the personal property, one that's paid off.
Yeah, what I would do is try to get right side up on this and figure out which ones can I sell that are gonna bring the right amount of profit in order for me to clear out this debt.Have you sat down to kind of figure that out yet?
Well, the problem with doing, I mean, I've thought about that in the past, but being that, Pretty much every one of these make a pretty good income after the debt.
When I factor in selling them off to pay off the other ones, it reduces the income pretty substantially.
Is this your only income?
It's not as much income as you think.Your margins per house are actually not impressive.And I'm not saying that to be unkind.I'm saying that because I agree with Jade.And I think the best play here is to actually get rid of the duplexes.
I'd sell the duplexes today.Those are just bad investments in my opinion. But the point is, I think Jade's right, you can still come out of this thing on top.
You've got enough equity in these homes, just as you were listing through these, that if you sell X amount, so I would take, I'm making this up, let's say you've got eight properties, I'd take the best four.
I'd start there and go, what are the absolute best four properties if you're looking long-term, Tyler?And I think you probably know some of these are better than others, true or false?
Okay, so once you pay those off, as Jay told you, now it's straight profit.But on some of these you were listing, you're like, well, my mortgage is $1,000, I'm making $1,750.That's $750 gross times 12.
That's about $10,000, a little over $10,000, and that's actually gross.After your expenses and taking care of things,
All I'm saying is, is that you're gonna be better off with Jade's plan, because now you're actually making a sizable chunk and you don't owe any debt and you have no risk.I'd get out of this now.
I mean, the truth, what Ken is saying is right on.And I don't say this to be condescending in any way, but the truth is, revenue minus expenses equals profit.And you're in debt, you're in the red, because you owe two and a half million.
it would be very different if you're carrying all these properties and you're like, Jade, I've got, and don't get me wrong, I'm not saying I'd be a proponent to this, but if you're like, hey, I'm carrying all this debt, but because of the way it's cash flowing, I'm in the green two and a half million, but you're in the red.
So these are not good investments for you.What signals a good and healthy business is profit.And so what you're saying, you're cash flowing, it's not actually profit.
What really should be happening is you need to be filtering back then in that end to pay off the debt. And so for that reason, yeah, what Ken said, what I said before is your way out of this.
I want you in the green and I want you doing deals that, that end, um, with a net profit and that's not what's taking place here.
Um, could four of these pay off the other four, just gut check real quick.
Um, well I have, so there's two, if I take my personal property out of here, that reduces it down to about, $1.75 million in mortgages, and then the value would be somewhere around $2.7 million.
So we have about a million dollars in- Man, okay, so let me paint a different picture for you.Let's just real numbers, okay?Let's say that you now have a million dollars.A million dollars.
and now you're paying off your personal home, no debt in your life at all, and now you get real cash flow plus cash.Why is that not the better play in your mind?Zero risk.
Yeah, and your place is paid.
Yeah.Is that not a better vision?If you don't agree, you just have to what?You're acting like this is impossible.
Well, the thing is, we just crumbled your empire.I sense that. acquired this over time.
Yeah, but those four are going to spit off how much?That's what I'm trying to get you to.Let's say you were left with four houses.You got cash, plus they're spitting off, you know, the four left are going to spit off what?How much per month?
I would have to see which one's the best here, but if I, yeah, just off the top of my head, I'm probably looking at like, if I just say three, they equal up close to that, it'd probably be somewhere around I don't know, 6,000 or so.
Okay, but that's real money now.That's 72 grand in the clear.Not paying any debt.You'll have some expenses on that.
Yeah, the truth is, Ken is right.If there's anything good about any of these investments, you should be able to sell off some of them, pocket some cash, get your residents paid for, and keep some of the properties.
That's what should be happening here.If for some reason you can't sell these to clear the debt, then something really is wrong.This is the Ramsey Show.
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you'll leave memories not a mess get your family's knock box today at knockbox.com slash ramsey that's n o k box.com slash ramsey you are listening to the ramsey show i'm jade warshawn next to me is best-selling author ken coleman host of the ken coleman show if you don't know about ken coleman you need to get on it because he offers a lot of things that you need in your career and professional life
Also, if you want to call in and have questions about your professional life, he's the guy that's going to help you out.I'll help you with the money.Uh, the number is 8 8 8 8 2 5 5 2 2 5.If you didn't know it's a live show.
So if you want your question answered, call in right now.Okay.We've got Matthew in Springfield, Massachusetts.What's going on, Matthew?
Not much kid.How you can, how you guys doing?Good.How are you? Good, thank you.I'm calling in because I am curious how to go about having the conversation with my little brother on paying on his Parent PLUS loan.
Okay, there's a lot going.You're not even third party, you're like fourth party on this, right?
Yeah, I've been listening to you guys for about a year now and I've had a couple family members come to me with money advice just from listening to you guys and kind of what direction to go.And then some people are like, ah, you're crazy.
I mean, what makes you feel like you're the guy to talk to your little brother about paying for the parent plus loan that your parents took out?Tell me more about that.Why you feel you need to step in?
Uh, just, He would listen to me more.He doesn't really see eye to eye with my parents.We don't really talk to him that much.He comes home here and there.But other than that, communication is minimal.
Okay.I mean, the truth is when I'm looking at Ken's face, I wouldn't touch this with a 10 foot pole.It's not your battle to fight.Um, I'll, and, and case and point, I tried to talk to my younger brother about his parent voice loans.Oh, you did?
It didn't go.It did not go.
And were you close with him?And are you close with him?Yeah.This is a strange relationship.
Listen, I'm a Ramsey personality and he didn't even listen to me.
That's my point is you got to let people fight their battles.If your parents want your little brother to pay the loan, they need to talk to him.
Did they, did they come to you on this or did they passive aggressive kind of drop some things around you to where you felt this burden?
No, it's just the family member comes to me and talks about it.And um, yeah.
So you said no, but the answer was yes.She straight up dropped it on you kind of passively, aggressively, griping about it, and you felt like, all right, I'll take up the cause because you're a good son.
I mean, thank you for the good son part, but it's just talking to him between the two of them.She tries to talk to him and he gets very upset almost triggered essentially and wants nothing to do with the loan.
Well let's let's find out and I let's make it clear this is fourth party information but to your recollection when the loan was taken out did they talk to him and say hey we're signing for this loan but it's up to you to pay it back?
Yes, so well, it's just my dad didn't sign.It was just between my mom and my brother.And it was to go to a school that was out of the picture.
So they both signed it.The mom and the brother signed it or just the mom?
Both.Both signed on it.And then she had told him he should come back to a college in the area that was much cheaper.
and he continued to disagree but again at the time we weren't listening to you guys and um well here's the truth here's the truth and i'm not suggesting you get involved in it but just in case your brother or your mom happens to listen to this call the truth is
a cosigner is in place when the first party is deemed unfit to pay the loan.That's the truth.And so a lot of times a parent plus loan comes into place where it's like, hey, you've already maxed out the other loan options available to you.
We're not gonna loan you any more money just on you.So now you've got to get a parent to sign or vice versa.And so the truth is, If you sign the loan, as the parent, you're kind of the one on the hook for it.That's the truth.
Now, I get it, and that's why I asked if there was something that they worked out in the beginning.But the truth is, you really don't know the nature of all the conversations that have taken place between the two of them.
You know what your mom has said.Obviously, there's something that's triggering your brother. If I were you, I ain't in it.That's what I would say is, hey, you guys figure this out between the two of you.
I hope you can come to amends on this, but mom, please leave me out of it.Brother, please leave me out of it.That's what I'd be saying.Ken Coleman.
Yeah, you know, if you called and said, you know, how should I go about it?I'm with you.I wouldn't do it.Because now the tension between your mom and him, now you're getting in the middle of that and now it's on you.I would stay out.
That's choice A. However, if you want to talk to him, I think you got one shot. And this is what I would do.
One shot.Thank you with the M&M's.She's always there for me.Thankfully, this time she made a music reference that I understand.Usually, I'm like the old boomer.Like, what?What you talking about?You did good.
Yeah, yeah, yeah.If I was going to do it, which I wouldn't, but if I was, I would take the high road.And what I mean by that is, hey, listen, mom dropped this on me in the conversation.Yeah.It's none of my business.
like this liking the caveats uh-huh but as your brother you know and i don't want to see you and mom have this fight you all got to figure this out um but i'm telling you you owe it to them to mom you owe it to mom you signed on the line you went to the school you wanted to go to i'm not going to belabor this i'm not going to belittle you i'm not going to judge you but i'm just going to say bro
you're going to regret this if this becomes a big issue between you and mom when you're an old guy.So I'm just saying I think you need to step up and fix this with mom and take your responsibility and then I'd walk away.
I think you just at that point you're trying to say man I just think this is best for you and mom.You did sign up for this.I'm not going to bring this up anymore.I'm not going to bring it up anymore and I'd walk.
This is why I hate them, because the truth is, Ken, you're right.If you're listening to this, you have a Parent PLUS loan.If you can, let's play out a couple of scenarios here.
If your parents are in their 70s, they're in debt, there's no way they're gonna pay this thing and both of you signed for it.The truth is, it's going to affect your credit.
Like, they could literally pass away and it's still gonna go to you because you're signed on it too. And so that's one way this plays out, which is in the end, it's gonna fall on you anyway.
If both of your names are on it, then there's some situations where only the parent signed the loan.And if that's the case, it's like, listen, if you don't plan on paying this, you took it out, all in your name, it's all on you.
truly the student has no need to go in there and fund that.And then there's the situations where it's like, hey, we spoke about this ahead of time.And we said, hey, if we sign the 60, you pay it back.
And if that's the case, you have to make good on what you said you were going to do, regardless of whose name it's in.If you make an agreement, you should hold up your end of the bargain.So there's a lot here.
There is, and I'm gonna bring one more scenario, because I think this is very likely.There's a scenario where the brother is sitting at a graveside service.
and he's broken and he's dealing with an almost unbearable weight that he let this create a division and things were left unsaid all because of a commitment that he made.I just think the regret on this will be almost unbearable.
I just, I think you have to talk real real about this.This is where this ends up.
Yeah, but the brother The two parties who signed need to talk.
This is not sideways conversations.It's not on our friend who called us, Matthew.
The moral of the story here, guys, is Parent PLUS loans don't do it.And I'll tell you a real story.Ken, I went to school on full ride scholarship, but I went a fifth year and my scholarship didn't cover the fifth year.
And I remember asking my dad to sign a Parent PLUS loan for me.Do you know what he said?No.No.
He said no.He's like, I'm not signing that loan. So it's okay to say no.And just know that if you sign something with somebody, you're connected for life.And if they don't pay, it's on you.And if you don't pay, it's on them.
Parents, this is not a gift.Signing debt to your child is not a gift.It creates strain and strife and contention. and all of these things.So do not do it.Find other ways.
And if you're dealing with this situation, you're going to have to open and honest conversations with your parents about it and figure out a plan forward.And both of you hold up your end of the bargain.This is The Ramsey Show.
I've been doing this show for over 30 years and some of the saddest calls I have taken are from situations that are completely preventable.
Yeah.And what's so hard is I feel like one of those, especially the ones that I'm like, Oh, it's terrible air.People that call in and their spouse has passed away suddenly and they don't have life insurance.
When you have to think through, how am I going to pay my bills?How am I going to eat next week?Yeah, in the middle of all that grief, like it's just, it is, it's terrible.
So life insurance is the one thing, especially as a mom with three little kids that I'm like so big on for people to get because it's inexpensive.Zander is the place that Winston and I actually get all of our life insurance.
And it doesn't cost much, because Zander shops among a gazillion different companies.It doesn't cost much.You just have to admit that someday you're not going to be here.
You've got to say it out loud, and you've got to say, I'm going to say I love you to my family by taking care of them and taking the time to put this stuff in place.It costs no stinking pizza.To get a free quote, call 800-356-4282.
That's 800-356-4282, or go to zander.com.
You're listening to The Ramsey Show.I'm Jade.Next to me is Ken Coleman.And here at Ramsey Solutions, we have a wonderful debt-free stage.People come here all the time to give their debt-free scream.
And Ken, something very cool is happening right now.
I think it's cool.It will be cool, but it's strange.
For us, because our two friends and colleagues... No, don't give it away.
I stopped.I stopped.Yes, ma'am.I stopped.
The buildup that we discussed was to say... See, now I'm basically wondering, who am I talking about? This is the first time we've had a non-married couple on the Debt Free Stage.
I know, that's why it's kind of cool and weird.
Okay, so now in keeping with the theme, let's do the big reveal. We are not a couple.Ayo!
Do you know those voices?That is the one, the only, the graceful, the incomparable Rachel Cruz.Yes.Joined on the Debt Free Stage by Beauty and the Beast.Yes.They got throughout the mold.He is the one, the only, Dr. John Pelloni.
Guys, it's kind of sad that we're all separated by a glass.
I know.I feel like you and I have a virus maybe.We do.It's kept us away from everybody.
Yes, we're contaminated. But tell us, tell us why you're on the stage.I mean, we just had a really great weekend.Tell us about it.
So yeah, we just got off of money marriage weekend here where 600 plus couples came from all over the country, actually all over North America.They came from Canada too.
And it was an amazing weekend and we are having a money marriage event tonight, a live stream event.
okay this is virtual so we knew not everyone could travel to Nashville for having you know multiple days here because you know life it's expensive there's kids everything so we did want to create an experience for couples out there that can't make it here live so we were like well a few days after the big event let's just do a virtual night kind of a mini and I can still sign up you can still sign up right so
And it's only 49 bucks.Like you spend more on that on a couple apps these days.
I thought you meant on your phone.
Sorry, I meant at dinner.I'm thinking date night.I'm thinking tonight's a virtual date night.
And if you miss it tonight, we're actually going to still have it live.So you can still go and purchase a ticket and still watch it after tonight.But we're going to be live at seven o'clock central time.
All right, what are you covering?Because the money marriage weekend is an extravaganza over multiple days.You got to shrink it into one night.What did you choose to cover?
What are they going to experience?I think we're going to be talking specifically to the chaos that everybody feels in their house right now.We have an election coming up.I don't know what you're talking about.My house is serene.Exactly.Mine is too.
It's just like a walking pack full in my house.
but um there's chaos in everybody's house it's just an electricity in there and we're heading into the holiday season right so how do you keep your family intact both psychologically and emotionally and just have some joy it's the holidays coming up yeah it's marriage and money are you talking about s-e-x there will be some of that we're talking about some in-laws what does that stand for together not together
That was an acronym.I didn't get that.
Choices, making wise choices in life is important.So John's talking about that.I'll be talking about budgeting, your money, your time.So again, it's kind of the proactiveness going into the season that we're going in when you're a married couple.
So how do you do that well?
Should couples, here comes the fastball, should couples budget time for the SEX?
Yes.And if you're talking about special exotic xylophones, no.I wasn't, but now you've got me thinking about it.Well, you're talking about acronyms.But yes, you should budget time for joy.You should budget time for sex.
You should budget time for everything.And Rachel is going to cover that tonight and more.Okay.
Speaking of budgeting time, if I'm going to sign up for this money in marriage virtual night, how much time should I budget to watch it?How long is the event going to be?
We're going to throw out an hour and a half.
Yeah, an hour and a half, two hours.
Okay, sounds good.So there'll be some live Q&A too, so if you're there live watching, we'll be answering your questions at the end.
And so they can ask questions.They can ask questions, yeah.So there'll be an active chat.Oh, that's always fun.
Yeah, and I mean it's sold really well.We're excited.
So there'll be a lot of people watching all over.Wow, so what you're telling us is we make a plate of nachos, we get some drinks, we set it up on the big screen.And just enjoy.
And let's be honest, it's a Tuesday night.What do you people have going on on a Tuesday night? Let's be clear, we don't talk to exciting people because we're not exciting people.We're not.So what else would you have tonight?
Take a night off from the election drama and just pause the Netflix series.
Yeah, that's what I'm getting at. and tune us in and hopefully we will help, right?
So it'll be entertaining, it's gonna be fun.It's gonna be a blast.Okay guys, tickets are $49.Get yours at ramsysolutions.com slash events and again, if you can't watch it tonight, you can still sign up and watch it whenever you're ready.
You can click the link in description if you're listening on YouTube or podcast.Rachel, John.Yeah, thanks for hanging out.Thanks for coming and hanging out with us.
It's good to see you on the other side of the glass.
I feel like James we need before we let him go.I feel I'm calling an audible.James told me I need to get rid of him.Shouldn't they scream something? Oh no.We're not married.We're not married.
Three, two, one.We're not married.
And then you're out of here.All right.Count it down.
I am married though.We're not married to each other.That's right.I like Rachel's thing.Go ahead.Count it down.
Three, two, one.We're not married to each other.
Three, two, one, we're not married to each other.
All right, get out of here.
We did the sound effects.That was a great freedom, that was fantastic.Thank you for Winston Cruz, we love you.
And Sheila.We did the whole thing, sound effect, everything, and they literally just, they didn't even give it a college try.I know.
Well, you know, sometimes people do do their debt-free scream and it's kind of like, we're debt-free.And you're like, what's happening right now?
Well, that's their style.
That is their style.Yes. That is just to wrap this crazy segment up.Yes, Marriage and Money is doing a virtual event tonight.It's a marriage date night.You can sign up.It's 49 bucks.RamseySolutions.com slash events.
If you can't attend tonight, still sign up.It'll be available for you to continue to enjoy.OK, after that, can we need to go to the phone?
I think it's time to help somebody.
Knoxville, Tennessee, is where John is.What's going on, John?
Hey, guys, how's it going?
We're great.How can we help?
Um, so I got married about two years ago.Um, five months ago we had our first baby.Um, we moved into a bigger house.
Uh, expenses are up incomes a little stagnant and she, the wife is talking to me that we need a new car and I just, I've spent all my twenties saving my pennies and I'm worried about I'm worried about opening up the cookie jar.
I love the way you're setting this call up, John.I think this is great.
But he's laying it out, though.He's done.John has no capacity for more expenses, Jade.
Okay, John.What's the current vehicle situation?Let's see if this is warranted.What's going on with the cars right now?
Mine's probably 13 years old.It's got 105,000 miles on it. I bought my first property about a mile from my work, so I wouldn't put a bunch of miles on it.And, uh, Oh yeah, it's paid off hers.Hers.It's been paid off for eight years kind of thing.
Um, hers, we've got four months, maybe five left on it.And hers is relatively newer.It's a 2017 Honda. a cord, but she wants something bigger to haul the baby around.
Mine is a Kia Optima 2012.Is that a car or an SUV?It's a car.
So her Accord still has payments.In her mind is she thinking, hey I want to roll this into another car payment and get the van I want or is she thinking, hey let's let's get out of this and pay cash for something?What's her plan?
So I mean it would be probably turning my car in because it's kind of dinged up and old and me taking her car and me purchasing the next vehicle.How much?
Okay, let's figure out if that can work.What do you owe?What's the balance on the accord?
She's got three or four more months of payment.
And what does that equal to?
I think it's $500 a month, so she has like two grand left on it.
Okay, so it's got about two grand left.And then what do you have in savings?That's not an emergency fund, because this is not an emergency.
Yeah, probably $500,000, something like that.
In non-retirement savings?
Yes, not in retirement savings.
Why are we talking?Go buy her a car, John.You got half a million in savings and cash.You better loosen up those purse strings.What do you make a year?
Mama wants a minivan.What do you make every year?Together, we make 160.
Okay, so don't spend more than half of that.Your two vehicles combined do not need to be any more than half of your take-home pay.Go get this woman a car and pay cash.
Now.This is the Ramsey show.
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You're listening to the Ramsey Show.Hey, we're glad you're here.Thanks for taking some time out to listen to the show.If you get a chance, like it, share it, subscribe it, all of that good stuff.
Ken Coleman is my co-host today, talking about your life, your money, your careers, your relationships.The number is simple, 888-825-5225 gets you in.We've got Sarah, who's in Houston, Texas.Let's go.What's going on, Sarah?
Hi, um, I am a stay at home mom and, um, my husband and I don't have any debt other than our mortgage and we live on a budget.Um, but it's pretty tight and I find every time I'm saving money, I ended up dipping into that.
Um, my, my question is, my husband has a pension if he works for the city.Um, but we also give to a different investment account, like for retirement, just in case. the pension gets mismanaged and I'm just wondering if we're overdoing it.
And, um, well tell us the numbers.What percentage goes, what percentage goes to his pension and what percentage are you guys putting aside in the additional investment accounts?
So 12% goes to the pension and I think it's almost, it's almost 15% um, goes to the four 57.
Wow.Okay.Um, typically what we would say is treat the pension like half.So maybe in this case you could treat it like 6% and then you do the other 9% to an, to another investment account that you're have more control over.
Um, so in that way you could pull back.And I think having that extra 6% would help things feel less tight.Yeah.
Yes, for sure. and then maybe help us save for kids college a little bit easier.
Let's talk about income.So it feels like you guys are pretty good at the budget and it's just an income issue.Obviously you're stay-at-home and that's the season of life and it's a great choice.What is he making and what does he do for the city?
He is a firefighter and his income varies with overtime. So, it's about 5,000 a month, I think is our average.
Yeah.So, what other skills does he have, experience does he have, that's transferable?
Because one of the things about a fireman's schedule is he's got those three on, four off, or whatever it ends up being, you know, and so he's got, my point is, he's got a really unique situation
where he's got some downtime or he could be making some money.
And this is not necessarily something he has to do for the rest of his life, but certainly in this season, where it's just one income, adding some more income right now, I think is a must for you guys.Number one, to have some margin.
Because you guys are disciplined.So imagine how much more progress you guys could make financially, given your discipline, if you had more coming in.You tracking with me?
Yes, I think I feel like the time off gets sucked up with things like fixing cars and fixing the house.
That's when he comes back and is part of the household.
I get that.All I'm saying is I get that, but that's still a choice. You guys have got to make choices right now.You got little ones, you're trying to save for them, and you're going to have to make a choice.What's most important?
I can see one day a week he messes around with an old car or something like that.That's a hobby.I'm all about hobbies.I got my hobbies and they are religious for me.
Fixing the cars is more that we drive old cars that need fixing all the time.
But again, more money means better cars. More money means investing for the kids' colleges or their future education.
How old are the kids?They range from 12 to 1.
Ooh, mama!How many do you have?
Oh boy. You know what?I'm not going to lie, Sarah.When you first, when I first started talking, I said, Sarah sounds stressed.
And you, you are stressed.I am.You're doing a great job though.To Ken's point, you guys have got a handle on the budget.I love that.
What I really love is that when I asked you direct questions about the numbers, you knew them, which lets me know you're on top of this.Um, and,
I think Ken is right, if there's a way to bring in a little bit more money to bring some breathing room into the situation, it would probably help you guys out over time.
I'm not sure what that is, but I think that there's some margin to make that happen.
Either way though, I think dropping that, investing down by 6% and taking advantage of the pension that is there, I think that's gonna give you guys the breathing room that you're looking for. All right.
By the way, just a quick follow-up on this for anybody that feels like they're in this situation.
What I would do is reverse engineer this thing and go, how much more money, this is for people who know their budget like she does, how much more money net to our household budget every month would take us beyond just some breathing room, but would be like, ooh, we got some momentum with this amount of money.
So if that number's 500 for some of you, get after it.That's six grand a year.Gross.These are all gross numbers.
So, you know, I'd like to see in this situation, if a fireman like this, he's got some skill, I'd like to see him aim for 25 to 30 grand additional income a year.
Once you pay taxes on that, that's going to more than give them breathing room and actually allow them to make progress.This is the way I think you have to separate this out so it doesn't feel so overwhelming.Like, oh, I got to get another job.
for a season yeah you need to bring in an additional 25 grand but we don't focus on the work we focus on what the freedom what are the options as a result of more money more money i'm gonna tell you something i know a lot of rich people and i can break it down to this you know what rich people have tell me freedom options all kinds of options to do whatever the flip they want whenever they want and so we don't we don't have to aim for that
We're not keeping up with the Joneses.I'm simply saying that if you talk to wealthy people, what they love most about being wealthy is not the actual money.It's options, choices.And they've got some very clear things, choices.
They want to give their kids choices for education.So if that's the issue, I got to bring in some more income in their situation because they're already tight and they're living disciplined.So that's half the battle.
That is half the battle.That's good.That's good, Ken.I mean, luckily for them, they don't have any debt besides their mortgage.But even with that, to make the progress to pay this off quickly, it's going to be.
Yeah.So let's play your point out.So now let's take, let's say they get extra money and it takes care of the kids' education futures.But then you got this sweet couple that's worked really hard and they've been great parents, great Americans.
Well, they want something left over too when they get to 65.
So that additional 25. Don't get me started with you and your investment calculator.You start plugging in those numbers for themselves and all of a sudden now they've got a really, really comfortable retirement options when you're old.
Yeah, this is very true.And let's talk about this in a bigger picture because Sarah kind of hit on something that I think a lot of people feel.They're in baby step four.
And there is kind of this feeling like once I hit baby step four, there should be no tight feeling anymore.
I should be able to just go and sometimes people hit baby step four and they're not feeling that freedom, that options that you're talking about. And the truth is, some of it can be income, like they're facing here.
Some of it can be season of life, because if you're, she's a stay-at-home mom, but if you've got two kids in daycare, if you've got kids in private school, Ken, there's different things that can put strain on your budget in baby step four that is just for a season.
And if you can decide, hey, we're going to side hustle for a little while, you will come to that point where there's, a clearing in the woods.You know what I'm saying?
That's a great way of saying that.That's really good.That emotionally describes that.
You know?Because everybody wants to get to that.
You mean like walking through and briars and little branches hitting you in the face and it's hard to walk.I love that.Then you eventually see that clearing.That's really good.And that's why the extra income.Yes, it's hard.Yes, it's inconvenient.
But look, that's the reality.
I mean, over 40% of Americans have side hustles.There's a reason for it.Yeah.
Because it's expensive.It's expensive.As my brother used to say when he was little.I know, that's right.Expensive.
Things are expensive these days.
You got four kids trying to go to college.You got a kid, you know, all of that matters.If you're in a season of life where you're trying to get pregnant and you're paying for fertility treatment, all these things.And so basically what I'm trying to,
do in this moment is kind of normalize the feeling that if you are in baby step four and it's a little bit tight, it doesn't mean that you're doing something wrong.It simply means that you have chosen a value for that time period and it's okay.
And the solution to that is, hey, maybe we bring in a little bit more money for the short term, or maybe we just accept it's a little tighter right now, but it's only going to be for the next three years.
And then there's the clearing in the woods that we talked about. All right, Ken Coleman, that does it for this hour.All right, stay tuned.We'll be back with you with more on the Ramsey Show.
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From the Ramsey Network, it's the Ramsey Show.We help people build wealth, do work that they love, and build amazing relationships.I'm Jade Warshaw.Next to me is Ken Coleman.We are your hosts for the next little bit of time together.
If you want to get on the line, you can call.It's a free call.It's also a live show.So the number is 888-825-5225.We will get you on the line.I'm here to talk money.Ken is here to talk professional development and career growth.
We've got David who's in Palm Beach, West Palm Beach, Florida.That's my neck of the woods.What's going on, David?
Hi, Jade.Hi.So my question is, is it worth joining the military?
No, there's more.There's got to be more to that question.Oh, okay.Give me a why.
Well, given my predicament, I guess you could say My immediate family, we're not that close.
I know everyone has problems and we all love each other, but I think it's going to be good for me to just get out of my hometown and potentially travel and meet new people. How old are you?
I'm 19.And to the extent that you're comfortable, what's going on?What can you tell us that's making you want to leave your zip code and join the military?
Well, my older brother, he's 22.He's had a couple running with the laws, and I love him.He has a good heart.And my father, he's 65. you know, he's talked about selling the house, you know, time and time again.
And, you know, I feel like it's eventually going to get to that point.Um, you know, last thing I want to do is, you know, go overseas and kill somebody.I, you know, I don't, you know, that's not, that's not my whole point of joining.
Uh, just want to be able to travel and, be a part of disaster relief work and humanitarian aid.
Okay, so that's what I was digging into.Thanks for sharing a little bit of that.Is your mom in the picture?
She is, but my mom and my father are divorced since I was about, I think, seven.We don't live in the same household with her.My older brother helps her out.
However, it does get to a point where you can only help someone as much as you want to help them.
I hear a young man who's craving some stability, some structure.Am I right?And I think the military for you provides a paycheck to do the things you want to do.True?
Yeah, here's what I heard and I want Jade to tell me what she thinks on this Jade.I I hear Getting involved with a
an NGO, a ministry, something like that, where he's actually serving people and providing stability and stepping into brokenness, which I think he's been swirling in for some time.
And when he said disaster relief, this is not a burning desire to serve our country in the military.It's not what I'm hearing.Tell me if I'm wrong.
I didn't hear that either.
I'm not very patriotic.You know, I was raised in a, you know, a religiously divided household.Uh, but fortunate, you know, for that, you know, um, you know, I was raised, I had Bible study.I, you know, went to my local congregation.
Um, you know, I know some brothers and sisters who've served, but for the most part, it was before they started studying the Bible.Uh,
So was I on the mark or off the mark?
If I had a job for you today and that we were overseas and you made plenty to be comfortable and you were serving people in a much less fortunate situation than even you've experienced, would you take that or would you take the same amount of money working in the military?
Which one would you take today?
The latter, the first option you mentioned.
The first option, not the military?Not the military.Yeah, so my friend, I actually think this is a great idea.Jade, I actually think this is a kid who needs to change his scenery.I think so too.
And at 19, this puts him right in that gap year, service year, there are countries in the world where every kid coming out of high school spends a year serving their country.If I were president of the United States, I would institute that.
I think every American young person coming out of high school ought to spend a year either abroad or in our borders serving because I think it's huge for their development and maturity.So in this case, because you're in a broken home,
I'm all for this, so I want Jade to weigh in, but my last two cents are I would be looking at non-government organizations across the gamut here.Charity, missionary, whatever, and where they're looking for a body.
Somebody who just cares about people.You don't have to be super skilled and super experienced.They'll train you.And I say go abroad and serve.And don't limit it to just going abroad.
You may find something in the United States, but changing your zip code?Love this.
Yeah, I think for me just listening to you, it's very clear that you have things that you want to run away from, and I get that.I just wanted to make sure that you had a clarity on what you're running towards.Yes.And I think it's there.
At first, I wasn't sure, but just listening to you throughout the call, I think it's there.I do think that you have a heart to serve, and I think that that'll be developed more as you do this.Yeah.
that was all i was looking for is just to make sure that you're not picking anything just to get out you know you have too many options at 19 because you only have to take care of you so i don't want you going to the military and then feeling like you're stuck there that's right that's the last thing even though the structure would be good
The opportunity to serve is there.I don't, I just don't think that's the thing.So when I said NGO, I don't want to insult your intelligence, non-government organization.
So the idea is there are a lot of, so Habitat for Humanity or, you know, a Compassion, a World Vision, a Basketball without borders.
There are sports, there are so many NGOs that are doing something good around the world and quite frankly they're looking for somebody young.
He applies just like anything else.
You apply, it's like a job like anything else.
You get a decent salary.That's relative, shall we say.Because these are donor-funded things.You're not coming out of law school and going to work for a law firm.
You're going into an organization that is donor-funded and it is in the relief space or humanitarian space.
and so yeah but you're not apples for apples you're getting to travel yes interact with other cultures serve travel and and escape the chaos yeah and make it about other people i love can you already know i love if you can take an opportunity that allows you to get out of the united states i think and travel
I think that is one, as an American citizen, I think one of the most important things you can do is go visit other countries, go visit third world countries, go visit underprivileged countries, because you will come back here and go, oh my, you will kiss the ground you walk on.
You truly, truly will.When I came out of college, I started working on cruise lines.Ken, you already know this.My husband and I did 92 different countries.
I mean, go to Sri Lanka, go to Malaysia, go to Vietnam, go to Cambodia and you will come back here and go, oh my goodness, thank you, Lord. And so I love that for this 19 year old.
I think that it's gonna be a great opportunity for him to see what else is out there, to learn, to experience other cultures.
Here's what he's gonna do.He's going to find some peace and more importantly he's gonna find some purpose by just exploring.
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You're listening to The Ramsey Show.I'm Jade.Next to me is Ken Coleman, taking your calls this hour about your life, your money, your business, your relationship, your career, whatever's on your mind.We'll be here to help.
We'll go to Los Angeles, California, where we've got AJ on the line.What's going on, AJ?
Hi Jade and Ken, how are you both doing?
Great.If I do say so myself.Yes.What's going on?
Awesome.Awesome.Um, well first of all, thank you guys for taking my call.Um, I'm calling because I'm starting a real estate media business here in California.I'm very excited for it and I have support from friends and family.
Um, just the one thing that keeps bothering me, I guess I could say is just a fear of AI.Um, I have this fear that AI could essentially replace my work and, could make it less valuable, and I really just wanted your guys' opinion on it.
Yeah, be more descriptive.Give me a 30-second description of what your company's service is going to be.What do you do for folks?
Drew real estate.There we go.
It is a new, it is a new company, but, um, we're going to specialize in video work and, um, and, um, more lifestyle work for agents who sell higher end properties just to help like elevate their brand and make it stand out from the rest of the market.
So you're a production company and you're going to be shooting video of their homes, the inside of the homes, outside, making the homes look great, but also making them look like those big shots on those reality shows.
Thank you.Yes.That's what you're going to do.But you're a video production company.Exactly.Okay.So AI.How is AI going to affect the video production industry?Have you done any homework on this?Have you begun to see trends?
So I've just seen things where editing work is being replaced, where a lot of the background work is being replaced, like stuff behind the scenes.So I'm just seeing that trickle into that part of it.
I'm not really seeing it on the front end, but it kind of worries me.
Well, but let's keep playing this out.So I'm leading you down a path here. So if AI tools allow you to do the editing or your team to do the editing quicker and better, does that replace you or does it enhance your business?
I would say it enhances the business.Yes, it does.Absolutely, it does.
And so what you have to look at is, okay, so I had cigars with a very successful movie producer about two weeks ago, Jade, and he told me, point blank, and this guy, he's producing the latest rock movie that's coming out next year, so this guy's big time.
And he said to me, and was showing me on his phone, a full movie trailer that was AI start to finish.Not one real person in it.
Alright now, I bring this up to say, in this case, if I was an actor in the actors unions, and that's already happening, that's why the latest strike happened in large part, what is AI gonna, is AI gonna replace real actors?
Because if you can do a blockbuster action film and not pay an actor 20 million,
That makes me so mad.I'm getting angry sitting here, Ken.
So AI would threaten actors, no question.Yeah, 100%.And he told me as much.
I'm getting mad.You cannot replace creative people doing creative things.I'm just putting that out in the world, not to you.
And he doesn't want to, by the way.He's not pro of that.He's just going, somebody's going to do it.It's going to be crazy.So everybody's going to have to adjust.I'm not going to ever connect to it.Someone's going to have to always do the filming.
Someone's always going to have to consult the realtors on their brand. AI cannot do what a human doesn't program it to do.Make sense?
So I would run it through that.Instead of just letting your fears run wild, go, wait a second, will the human touch be more needed than ever in my industry?And I think the answer is yes.It is.AI cannot do what you're going to do.
And the truth is, let's put it through, you know, obviously AI is new territory for a lot of folks, but in essence, in many ways it's not, right?There's always been a tool available to do something easier.
And as professionals, we get to decide, are we going to be the person who picks up the tool or not, right?And so there's always a vacuum cleaner.Some people don't want to vacuum, so they call a housekeeper.
There's always- Or you get that one that just roves around.
That's technology.Roomba.
Yeah.And so, I mean, right now there are more apps than ever before to make, you know, digital media and all that kind of stuff.But some people are like, I don't want to learn how to use those apps.
So they still go to companies that'll do that for them.So the point is, as long as there's tools, there's always going to be people who go, I don't want to learn how to do that.And you're still going to have the ability to do it for yourself.
Last point on this, AI folks, for our large audience, if you learn how to work with AI and use AI and also find yourself in industries where the human touch will always be premium, then you're going to be fine.
yeah i like that it's gonna make us want human more it is it really will i you know i'm a creative at heart i hate the idea i hate that i'm hearing music that is by i know not not real people i hate this idea of not real people being actors i'm like people need people if there's nothing we didn't learn from 2020 it's that people need human touch and human contact and
Humans create art and art is a reflection of culture and there's, I can't understand what the world would be like if that continuum was disrupted.Anyway, this is another conversation for another time, but anyway.
If it gets to that, you'll find me somewhere at my own restaurant, James, in the Caribbean, serving people.
Spinning yarns, telling jokes.
spinning yarns.All right.Let's see if Carl has a yarn to spend in, in, in Sacramento.Carl spin us, spin us a, spin us a yarn.
Okay.All right.Can you hear me?Awesome.Um, so, um, uh, I'm a 45 years old.I'm married, uh, nothing safer retirement.Regrettably, I do not own a home.
Currently renting a home.Um, I have about $250,000 in a high interest savings account.Um, and I started a small business about five years ago, which I currently still own.
Uh, but obviously getting older without, you know, any, uh, backup on the investment or even a home is worrisome.
Um, so I've obviously, and I'm married and I don't want to leave my wife without a home or, you know, without some resources in case something were to happen to me.Sure.
Does she have resources in her name?
Um, no, nope.Okay.No, she's, she's same situation.She has a good job, but, uh, that, you know, that doesn't last forever.So, um, so anyway, uh, so I decided it'd be a good idea to sell my business where it's at.
So I can start playing catch up on some of those important items.
If you sold it, what would it bring?
So after taxes, so after I pay capital gains to Uncle Sam, I'll probably have net about 500,000 left.So combined with my 250, I'll be at about 750 liquid cash that I can deploy in one direction or the other.And then what would you do for work?
Uh, I probably would go start a, another business, probably the same thing.Um, and you wouldn't need capital for that.
You could just go right to it.
Yeah.I'm still going to have a lot of the, the purchase isn't, he's not going to be purchasing all the assets.So I'll still have some of the assets so I can literally start the same business.
Okay.And what do you think you'd earn?I'm sorry.I'm just trying to get the numbers before we hit the clock.
No problem.Obviously day one, I'd be at zero, but I think I could probably get to about, I could probably get to about 4,000 net within six months.I could probably within a year, I could comfortably 6,000 to 7,000 net probably within a year.
Worst case scenario, if things didn't go well, because I am pretty established in my industry.
I can go work for another company if I thought things weren't really getting traction and I could probably get a job pretty easily making, you know, 80 to 100,000.Excellent.
So the question is, do you take, what do you do with the 750?
exactly.Yep.So I'm in, I'm in a, as you guys mentioned, I'm in Sacramento, so nothing's cheap in California.Um, and so just a small modest home in my area, you're looking about 550,000.
Um, nothing special, but it's, you know, it's a roof over your head and you know, it's, you know,
The truth is you're going in the right direction.I'd want to stabilize.That's the biggest line item on all of our budgets.It's rent or mortgage.So I'd want to stabilize that as quickly as possible.You've got the money.
If you can pay for something in cash and not have a payment, I love that for you and start investing the rest.When you get this money together, you need to be investing 15% of your gross every single month.This is The Ramsey Show.
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Today's question comes from Brad in Connecticut back in 2017.We tragically lost our little girl and received a large settlement from a lawsuit.We received $150,000.
I am an inspiring trader in the stock market, but I'm afraid to manage an account the size.We are living off of this for income.I don't want to work a normal job.I want to use the power of money to increase my family's wealth exponentially.
I would like to do what Dave would do in this situation.
This is crazy heavy, Brad.I'm so sorry for your loss.But I'm going to answer the question because you said I'd like to do what Dave would do.So, Jade, you can edit my best Dave response.
But if Dave were here, he would have a lot of questions about how you're living off $150,000 from seven years ago.So I got questions about that.Number one.Number two, $150,000 is not spitting off a lot of money.
Even at a 10% return, that's below poverty.Yeah, that's right.
So Dave would have questions about that.
And this idea of, I don't want to work a normal job, okay, don't hate that, but the next line is the most confusing in the whole question.I want to use the power of money to increase my family's wealth exponentially, but you're not making any money.
You've been living off of a very small settlement.So there's a lot here that's just kind of contradicting.So Dave would say in this situation is increase your income, because day trading is extremely risky.It is not a hobby.
It is not for people who do not really, really know the game.It is highly speculative.
Extremely low success rate.
So we would say go get a really good paying job or get a good job at this point and let's work.Let's add skill, add experience.Let's live on a budget.Let's invest and let that work.Let that money work for you.But I don't like this plan.
Yeah, day trading success rates, less than 5% of day traders are considered successful.And most of them quit after two years.Only 1% are successful, and I'll put successful in quotes, successful over a five year term.That's...
So essentially it's gambling and to do that with the money from a tragic loss would be just heart-wrenching if you lost that.So I would use the money to go towards whatever baby step you're on.
And if you need more information on that, that's found at ramsaysolutions.com.All right, Ken, let's liven it up a little bit.Let's go to Jenny.She's in Gillette, Wyoming.What's going on, Jenny?
Hi.Um, I, in 2004, I had a judgment, um, happened to me and, um, paid off, but one of the credit reports still has it on there.Um, and so how do I get that off?Is it important to get off?Um, like I just became debt free.
So like I don't plan on using my credit.I obviously don't feel like that's important.Is it just something I should just drop?
It's probably going to fall off on its own.A lot of times those negative marks on your credit score can take some time to fall off.Um, some, some things like bankruptcies and things like that can take up to like seven years to fall off.So,
In your case, I think your credit score is going to disappear long before this would have fallen off naturally.Most of the time when you pay off all of your debt, your credit score will roll to zero.
Whether it takes six months or 12 months, it just depends.It's usually somewhere in that time frame.So good, very good on paying off all the debt.How much did you pay off?
Um, somewhere around 120 to 140,000.Nice.How long did it take?15 years.Wow.Okay.How's it feel?Amazing.I feel like I can start over again.Like I'm, I'm 43 and I feel like I'm just starting my life over.
You are, you got a clean slate girlfriend.I am proud of you.Very good call.All right, let's keep them rolling.We got Holly in Columbia, South Carolina.What's going on, Holly? Hi, can you hear me?Yes, we can.
Um, thanks for taking my call.I really appreciate it.You bet.Um, so we bought a house about three years ago and we thought it was just a cosmetic fixer upper, but unfortunately it's a lemon.
Um, we've been in a lawsuit for the last two years that isn't really going our way.And my question is, should I let the house go into foreclosure?
What's the lawsuit?What makes it a lemon?
So it has basically so much termite damage that the foundation is not really fixable.Our estimate to fix just the foundation problem, there's a lot more problems, is over $165,000.Wow.Was there no inspection when you bought it? No, there was.
We were lied to by basically everybody involved in the sale, including our own inspectors.Why?
Who was gaining from this?
I honestly don't know.We moved to a whole new town across the country.And from what I can gather, this happens quite often here.And nobody ever does anything about it.
Okay.What are the lawyers saying?Are they taking the case or are they like, you have no case?Tell us more about what the professionals are saying.
I only found one lawyer who would help us.Um, I've contacted a lot of them since.I don't know if our lawyer is really doing his job or not.He just keeps telling me it's going to be fine.It's going to be fine.
But the judge keeps letting everyone out of the lawsuit.
Um, is it because there's, and I'm not saying this to, I want to be on your side, but I also want to look at this unbiased.Are they letting people out of the lawsuit because they don't think you have a case?
The judge let the real estate agents out of the lawsuit because the laws are in favor of the real estate agents that they don't have to find any defects with the house.Sure, but what about the inspection company?
So the inspection company and the termite inspector are still technically in the lawsuit.Okay, good.
Because I feel like they would be the ones at fault, not the realtor.Just me looking at this from where I'm at.
The sellers are involved in the lawsuit still too, but we probably won't get any money from them.The reason I'm asking about the foreclosure is I got offered a promotion with my job, which I'm currently working remotely.
but I have to go back to the West Coast to take the job and I have to go by the end of the year and it's a significant promotion.
Okay, so you're like, we got to get out of this house, we can't sell it because it's got this damage.Tell me what you paid for the house.
We paid $200,000 for the house.
Okay, and if you were to sell it as is, is it still worth $200,000 because nothing new has happened to the house?
It's not.It's worth the land, which is only worth $30,000.Oh my Lord.
In addition to the foundation issues, the plumbing doesn't work.They put a new roof on it as part of a selling agreement.It's leaking everywhere. the company didn't get a permit.
If I'm you, listen, based on the laundry list of things you're listing out, There's no way I'm taking a hit for this financially.I would fight this tooth and nail.
If you did a reputable inspection as you're supposed to do, because I ask because a lot of people during this crazy market have waived inspections and done crazy things in order to get property.
But if you went through the proper channels, I would sue the inspection company because they're giving you their seal of approval and they go through these things.
What's your mortgage on this, your mortgage payment?
Yeah, and if you move to the West Coast with the bump in pay, could you absorb that into your budget?
We could stay with family for two years and pay off our other student loans and car debt.
I'm with Jade.I'd go get a better lawyer.I think there's more fight.You need more fight in you.
I'd go somewhere, another town, go find some hotshot in some firm in South Carolina where they want to really, I mean, I would just get at least a little bit more opinion from somebody who's used to winning these things.I'd fight a little bit longer.
Yeah, do not tap out on this.Based on what, if what you're saying is true, I'm going to the mat on this one.This is the Ramsey Show.
Hey folks, Dave here.If you haven't booked your cabin on the Live Like No One Else cruise, now's the time because it's 90-something percent sold out.
You do not want to miss joining me, the Ramsey personalities, and amazing guest entertainers for the ultimate debt-free celebration.
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This is the Ramsey Show.We're here for you, here to talk about your life and your money.I'm Jade Warshaw.Ken Coleman is next to me.I love getting to host with my good buddy, Ken.I have to say that.
I appreciate that.It's always fun.Always fun to take calls with you as well.
Indeed.All right.Hey, by the way, let me give you a little information here about our Ramsey Trusted Pros.They shop the market for you when it comes to insurance.I told George this the other day, insurance I understand the value of it, Ken.
It's necessary.We need it.I don't like dealing with it.And my family, I don't want to be the one to deal with it.And so I love the Ramsey Trusted Pros because they do it for you.
They compare it and shop all the quotes for you so you don't have to do it.Your pro gets out there, they find the discounts, they bundle the deals, and they do all of this at no extra cost, which is amazing value.
They'll make sure that you have all the coverage that you need and they'll make sure that you have nothing you don't.
And I remember we did a checkup the other, last year around this time, and it turned out that we did, they were able to get us more coverage for less money.
And so the Ramsey Trusted Pros, they are interviewed, they're vetted and coached to make sure that they're experts at what they do.And they have your best interest at heart.
The best way to remember that is, here we teach you the Ramsey way of how to handle your money and your assets and that sort of thing. they understand that.
You're not gonna have to explain them, well you know I do this thing called the baby steps or here's my philosophy with money.They're gonna understand that so that's what makes it easy.So shop the right coverage based on your individual needs.
You can go to ramsysolutions.com slash coverage or you can click the link in the description if you're listening on YouTube or podcasts.And by the way, Ken, when we help people with their budgets, when we coach them on ways to find margin.
This is one of the areas that we look at.There's always money here.Whether it be you have too much coverage or you're paying too much for the coverage you have, there's usually a decent amount of money to be found here.
So RamseySolution.com slash coverage is where you want to go.All right, I want to go to the phone lines.We got Dawn.Seattle, Washington is where she's located.What's going on, Dawn?
How are you doing, Jared?
How are you doing, Kim?Good.How are you, sir?
Well, I'm a little nervous and maybe you guys can help me out.
So I work for the Boeing company and for the last going almost two months now, we've been out on strike.
So I've fortunately have enough money in my bank account for four months to sit out, out on the picket line and support my fellow union members and everything. but I don't want to, you know, dwindle that down to nothing.
I've been going out looking for part-time jobs, you know, driving for like Amazon, you know, uh, seasonal work and everything.
Amazon now says, Hey, we're not going to take any more Boeing guys because when you guys go back to work, if we won't have any seasonal drivers and everybody, um, I'm contemplating,
you know, crossing that picket line, but I don't want to, you know, get myself, you know, in that situation.
Well, what would happen?Tell me what would happen if you crossed it today.What would be the penalties or the realities?
So, reality is, you go back to work and you're exiled from, you know, all the work.You know, your co-workers shun you and everything like that.
They shun you, but do you still work for Boeing?
You still work for the Boeing company.
Do you still make the same amount of money?
Still make all that money and everything.
Still get all the stock options or all the benefits, all the things?
Everything, everything except for, you know, if you're talking, you know, talk to the wrong person, you know, they're, they're not going to help you out on if you need to, You know, if it's a two-person job, yeah, screw you.
I'm not going to, sorry about that, but I'm not going to.
Yeah, but what about your superior at Boeing?How are they going to view you when you cross the picket line?
Yeah, they're trying to do our job. right now.
Somebody answer my question.I'm walking you right into my answer, okay?What is your superior at Boeing going to do if you cross the picket line today?What would he or she do?How would they react to you?
they would let you come back to work, you know, for sure, you know.
Okay.And so what would happen, what would happen in the scenario you just gave us where it's a two man job and, and we're, we're assuming that the union member is mad that you crossed the picket line and they say, Oh, I'm not going to help you out.
What, what happens in reality with your superior if you can't do the job because they're pulling that stuff?
If we, if, well, In the long run, if you can't do your job, then you will actually be disciplined.
Right, and so is this a real scenario where you wouldn't be able to do your job because of a co-worker not wanting to help you?
I mean, how much of a chance?Give me a chance.One out of 100?50 out of 100?What are we talking about?
Well, I'm going to tell you what I would do.I would cross the picket line today because I like paychecks, number one.I like working for the company, not being a part of a union where I can get held hostage.
Oh, by the way, you'd save some money on those union dues too, wouldn't you?
Oh, no, you have to pay the union, regardless of, you know... Oh, so the entire workforce is union, whether you want to be or not?
Correct.Oh, well, that would have been helpful information.
Okay, so... Oh, I'm sorry about that.
I wouldn't work for Boeing anymore. I am not a, boy I'm going to catch it for this, but I don't care.
There was a time in America where we needed unions.So at the, I'm not going to get into a long philosophical thing, I'm going to say that there was a time in America when the formation of unions
They were serving a worthy cause, there was need for this.Unions have since become massive political organizations, and I don't believe that it's the best thing for business.
I don't think it's good for capitalism, and capitalism works best when you, like you Don, get paid for what you do.And you're being held hostage in this situation.
If it were me, I don't see any benefits for you crossing the picket line unless there's something you didn't cover.Sounds to me like it's a no-win situation.You're going to get paid, but you may end up losing the job, right?
So I don't want anybody else controlling my ability to do the job.
So I'm out.But I've been here for 28 years.
I don't care.You've got a lot of skill and a lot of experience, don't you?
That's true, I do, yes.I've been called up by multiple different companies too, but I would have to relocate to Louisiana and everything like that.
But Don, what are your options?If you don't do that, you want to go through this again?And again?I have.And again?Yeah.I know your answer, you've done it.How many times have you done this in 20 plus years?This is my third time.
You want to keep doing this for the rest of your working career? Not especially.Then I'd get out.
Then I'd get out.I would change my environment and it's going to change my life.True or false?Correct.Then choose positive change.I got nothing else to say.I know you were going to say something.
No, I was just going to ask Don, how old are you?
Yeah.You got, this is just the beginning.You got plenty of time to get out there.Is it, are you married?
Okay.And what's, will her job allow her to, uh, uproot and is she willing to go on a new adventure with you?
She's, uh, she doesn't work, but, uh, leaving our, our situation and, and leaving our home is one of those things that I don't know if she's willing to do.
Well, listen, I won't, I won't tell you that it's easy because I've done it and it's not easy and it takes time, but I think Ken laid out a very clear picture, which is, it doesn't sound like you have a lot of other options.
And in this case, the fact that your wife is not working, that kind of creates a clear path for you.There's nothing on her end that's really stopping this from going forward.But yeah, 53, you're young.You got a whole other life.
I would be, I'd grow weary of being a pinball and a pinball machine.And that's what union workers are.Sorry, folks.It's the truth.It's just the truth.And it's unfair.It's ridiculous.
Yeah, Ken Coleman said it.If you want to email him about that, you can do that at Ken.
I'm just kidding.I won't read it.
That does it for this hour.Thank you, Ken, for your expertise as always.Thank you for the guys in the booth.Hey, head into the Ramsey Network app if you want to finish the next hour.That's where we'll be.
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